W I T N E S S E T H:
1
WAIVER
WAIVER, dated as of December 22, 1998 (this "Waiver"), under the Credit
Agreement, dated as of May 28, 1998 (as amended, supplemented or otherwise
modified from time to time, the "Credit Agreement"), among XXXXXXX & XXXXXX
PRODUCTS CO., a Delaware corporation (the "Company"), XXXXXXX & XXXXXX CANADA
INC., a Canadian corporation ("Xxxxxxx & Xxxxxx Canada"), XXXXXXX & XXXXXX
PLASTICS, LTD., a Canadian corporation ("Xxxxxxx & Xxxxxx Plastics", and
collectively with Xxxxxxx & Xxxxxx Canada, the "Canadian Borrowers"), XXXXXXX &
XXXXXX CORPORATION, a Delaware corporation ("Holdings"), the financial
institutions parties thereto (the "Lenders"), BANK OF AMERICA NATIONAL TRUST &
SAVINGS ASSOCIATION, as documentation agent (in such capacity, the
"Documentation Agent") and THE CHASE MANHATTAN BANK, as administrative agent (in
such capacity, the "Administrative Agent") and THE CHASE MANHATTAN BANK OF
CANADA, as Canadian administrative agent (in such capacity, the "Canadian
Administrative Agent").
W I T N E S S E T H:
WHEREAS, the Company, the Canadian Borrowers and Holdings have requested
the Lenders to waive certain covenants in the Credit Agreement as set forth
herein; and
WHEREAS, the Lenders are willing to waive such covenants in the Credit
Agreement on and subject to the terms and conditions thereof;
NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by each of the parties hereto, the
parties agree as follows:
SECTION 1. Definitions. Unless otherwise defined herein, terms defined in
the Credit Agreement are used herein as therein defined.
SECTION 2. Waiver of Section 6.14 (Interest Coverage Ratio). Section 6.14
of the Credit Agreement is hereby waived for the period of four fiscal quarters
ending December 26, 1998; provided that such waiver is effective only if the
Interest Coverage Ratio for such period is at least 1.75 to 1.00.
SECTION 3. Waiver of Section 6.16 (Leverage Ratio). Section 6.16 of the
Credit Agreement is hereby waived in respect of the last day of the fiscal
quarter ending December 26, 1998; provided that such waiver is effective only if
the Leverage Ratio on such day is no greater than 5.65 to 1.00.
SECTION 4. Representations and Warranties. Holdings, the Company and the
Canadian Borrowers hereby represent and warrant to the Administrative Agent, the
Canadian
2
Administrative Agent and each Lender that after giving effect to the waivers
contained herein, Holdings and the Borrower hereby confirm, reaffirm and restate
the representations and warranties set forth in Article III of the Credit
Agreement as if made on and as of the Waiver Effective Date, except as they may
specifically relate to an earlier date; provided that such representations and
warranties shall be and hereby are amended so that all references to the
Agreement therein shall be deemed a reference to (i) the Credit Agreement, (ii)
this Waiver and (iii) the Credit Agreement as amended by this Waiver.
SECTION 5. Conditions Precedent. This Waiver shall become effective as of
the date hereof (the "Waiver Effective Date") when each of the conditions
precedent set forth below shall have been fulfilled:
(a) Waiver. The Administrative Agent shall have received this Waiver,
executed and delivered by a duly authorized officer of each of the Company,
the Canadian Borrowers, Holdings and the Required Lenders.
(b) No Default or Event of Default. On and as of the Waiver Effective
Date and after giving effect to this Waiver and the transactions
contemplated hereby, no Default or Event of Default shall have occurred and
be continuing.
(c) Representations and Warranties. The representations and warranties
made by the Company and the Canadian Borrowers in the Credit Agreement and
herein after giving effect to this Waiver and the transactions contemplated
hereby shall be true and correct in all material respects on and as of the
Waiver Effective Date as if made on such date, except where such
representations and warranties relate to an earlier date in which case such
representations and warranties shall be true and correct as of such earlier
date.
(d) Acknowledgement and Consent. The Administrative Agent shall have
received from each of Holdings, the Company, the Canadian Borrowers and the
other Guarantors with respect to each Loan Document to which it is a party
a duly executed Acknowledgment and Consent, substantially in the form of
Exhibit A hereto.
SECTION 6. Continuing Effect of Credit Agreement. This Waiver shall not
constitute an amendment or waiver of any provision of the Credit Agreement not
expressly referred to herein and shall not be construed as an amendment, waiver
or consent to any action on the part of any party hereto that would require an
amendment, waiver or consent of the Administrative Agent or the Lenders except
as expressly stated herein. Except as expressly waived hereby, the provisions of
the Credit Agreement are and shall remain in full force and effect.
SECTION 7. Expenses. The Company and the Canadian Borrowers agree to pay or
reimburse the Administrative Agent for all of its reasonable out-of-pocket costs
and expenses incurred in connection with (a) the negotiation, preparation,
execution and delivery of this Waiver and any other documents prepared in
connection herewith, and consummation of the transactions contemplated hereby
and thereby, including the fees and expenses of Xxxxxxx
3
Thacher & Xxxxxxxx, counsel to the Administrative Agent, and (b) the enforcement
or preservation of any rights under this Waiver and any other such documents.
SECTION 8. GOVERNING LAW. THIS WAIVER SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
SECTION 9. Counterparts. This Waiver may be executed in any number of
counterparts by the parties hereto, each of which counterparts when so executed
shall be an original, but all counterparts taken together shall constitute one
and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be duly
executed and delivered by their respective duly authorized officers as of the
day and year first above written.
XXXXXXX & XXXXXX PRODUCTS CO.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Title: Executive Vice President & CFO
XXXXXXX & XXXXXX CANADA INC.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Title: Vice President & CFO
XXXXXXX & XXXXXX PLASTICS, LTD.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Title: Executive Vice President
4
XXXXXXX & XXXXXX CORPORATION
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Title: Executive Vice President & CFO
THE CHASE MANHATTAN BANK, as
Administrative Agent, Collateral Agent
and as a Lender
By: /s/ Xxxxxxxx Xxxxxxx
-------------------------------------
Title: Vice President
THE CHASE MANHATTAN BANK OF CANADA, as
Canadian Administrative Agent and as a
Lender
By: /s/ Xxxxxxxxx Xxxx
-------------------------------------
Title: Vice President
By: /s/ Xxxxxxxx Xxxxxxx
------------------------------------
Title: Vice President
BANK OF AMERICA CANADA, as
a lender
By: /s/ Xxxxxxx Xxxx
-------------------------------------
Name: Xxxxxxx Xxxx
--------------------------------
Title: Vice President
-------------------------------
THE BANK OF NEW YORK
By: /s/ Xxx Xxxxx Xxxxxx
------------------------------------
Title: Vice President
5
BANK AUSTRIA CREDITANSTALT CORPORATE
FINANCE, INC.
By:
------------------------------------
Name:
Title:
By:
------------------------------------
Name:
Title:
THE BANK OF NOVA SCOTIA
By: /s/ Xxxxxxx X. Xxxxxxx
------------------------------------
Title: Senior Relationship Manager
BANK OF SCOTLAND
By:
------------------------------------
Name:
Title:
BANK OF TOKYO - MITSUBISHI TRUST COMPANY
By:
------------------------------------
Name:
Title:
BRANCH BANKING AND TRUST COMPANY
By:
------------------------------------
Name:
Title:
6
CIBC INC.
By: /s/ XXX Xxxxx
------------------------------------
Title: Executive Director
CIBC Xxxxxxxxxxx Corp.,
As AGENT
COMERICA BANK
By: /s/ Xxxxxx X. Xxxxxxx
------------------------------------
Title: Account Officer
COMPAGNIE FINANCIERE DE
CIC ET DE L'UNION EUROPEENNE
By: /s/ Xxxxxxx Xxxx
------------------------------------
Title: Vice President
By: Xxxx Xxxxxxx
------------------------------------
Title: First Vice President
COOPERATIEVE CENTRALE
RAIFFEISEN-BOERENLENBANK
B.A., "RABOBANK NEDERLAND," NEW YORK
BRANCH
By:
------------------------------------
Name:
Title:
By:
------------------------------------
Name:
Title:
7
CREDIT AGRICOLE INDUSUEZ
By: /s/ Xxxxx Xxxxx, F.V.P.
------------------------------------
Title: Head of Corp. Banking Chicago
By: /s/ Xxxx Xxxxxx
------------------------------------
Title: Sen. Vice Pres. & Branch
Manager
CREDIT LYONNAIS ATLANTA AGENCY
By: /s/ Xxxxx X. Xxxxxxxxxxxx
------------------------------------
Title: Vice President
CRESCENT/MACH I PARTNERS, L.P.
By: TCW Asset Management Company
its Investment Manager
By:
------------------------------------
Name:
Title:
CYPRESSTREE SENIOR FLOATING RATE FUND
By: CypressTree Investment Management
Company, Inc., as Portfolio Manager
By:
------------------------------------
Name:
Title:
8
KZH-CYPRESSTREE-1 LLC
By: /s/ Xxxxxxxx Xxxxxx
------------------------------------
Title: Authorized Agent
DRESDNER BANK, A.G. NEW YORK AND GRAND
CAYMAN BRANCH
By: /s/ Xxxxxxxxxxx X. Xxxxxxx
------------------------------------
Title: Assistant Vice President
By: /s/ Xxxxxxxx Sacin
------------------------------------
Title: Assistant Treasurer
ERSTE BANK DER OESTERREICHISCHEN
SPARKASSEN AG
By: /s/ Xxxx Xxxxxxxxxx
------------------------------------
Title: Vice President
By: /s/ Xxxx X. Xxxxxxx
------------------------------------
Title: First Vice President
FIRST NATIONAL BANK OF CHICAGO
By: /s/ Xxxxx X. Xxxxx
------------------------------------
Title: Customer Service Officer
9
FIRST UNION NATIONAL BANK
By:
------------------------------------
Name:
Title:
THE FUJI BANK, LIMITED, NEW YORK BRANCH
By:
------------------------------------
Name:
Title:
XX XXXX MANAGEMENT
By:
------------------------------------
Name:
Title:
INDOSUEZ CAPITAL FUNDING IV L.P.
By: Indosuez Capital, as Portfolio
Advisor
By: /s/ Xxxxxxxxx Xxxxxxxxx
------------------------------------
Title: Vice President
THE INDUSTRIAL BANK OF JAPAN, LIMITED
By: /s/ Takuya Houjo
------------------------------------
Title: Senior Vice President
10
KZH III LLC
By: /s/ Xxxxxxxx Xxxxxx
------------------------------------
Title: Authorized Agent
THE LONG-TERM CREDIT BANK OF JAPAN
LIMITED, NEW YORK BRANCH
By:
------------------------------------
Name:
Title:
XXXXXXX XXXXX PRIME RATE PORTFOLIO
By:
------------------------------------
Name:
Title:
XXXXXXX XXXXX SENIOR FLOATING RATE
By:
------------------------------------
Name:
Title:
THE MITSUBISHI TRUST AND BANKING
CORPORATION
By: /s/ Xxxxxxxx X. Xxxxxxx
------------------------------------
Title: Senior Vice President
11
XXXXXX XXXXXXX SENIOR FUNDING. INC.
By: /s/ Xxxxxxxxxxx X. Puci
------------------------------------
Title: Vice President
NATEXIS BANQUE BFCE
By:
------------------------------------
Name:
Title:
By:
------------------------------------
Name:
Title:
NATIONSBANK, N.A.
By: /s/ Xxxxx X. Xxxxxxx
------------------------------------
Title: Vice President
NEW YORK LIFE INSURANCE COMPANY
By:
------------------------------------
Name:
Title:
NEW YORK LIFE INSURANCE AND ANNUITY
CORPORATION
By: New York Life Insurance Company
By:
------------------------------------
Name:
Title:
12
OASIS COLLATERALIZED HIGH INCOME
PORTFOLIO
By:
------------------------------------
Name:
Title:
OCTAGON LOAN TRUST
By: Octagon Credit Investors, as Manager
By:
------------------------------------
Name:
Title:
SENIOR DEBT PORTFOLIO
By: Boston Management and Research, as
Investment Advisor
By: /s/ Payson X. Xxxxxxxxx
------------------------------------
Title: Vice President
SOCIETE GENERALE
By: /s/ Xxxxx Xxxxx
------------------------------------
Title: Vice Pres. & Southwest
Operations Manager
STB DELAWARE FUNDING TRUST I
By: /s/ Xxxxxx X. Xxxxxxxx
------------------------------------
Title: Assistant Vice President
13
SUNTRUST BANK, ATLANTA
By: /s/ Xxxxxxx X. Xxxxxxx
------------------------------------
Title: Vice President
By: /s/ Xxxxxx X. Xxxxxxx
------------------------------------
Title: Banking Officer
TORONTO DOMINION (TEXAS), INC.
By:
------------------------------------
Name:
Title:
THE TORONTO-DOMINION BANK
By:
------------------------------------
Name:
Title:
THE TRAVELERS INSURANCE COMPANY
By: /s/ X.X. Xxxxxxxx
------------------------------------
Title: 2nd Vice President
XXX XXXXXX CLO II, LIMITED
By: Xxx Xxxxxx Management, Inc., as
Collateral Manager
By: /s/ Xxxxxxx X. Xxxxxx
------------------------------------
Title: Senior Vice Pres. & Director
14
WACHOVIA BANK, N.A.
By: /s/ Xxxxxxx Xxxxxxxx
------------------------------------
Title: Vice President
1
EXHIBIT A TO
WAIVER
ACKNOWLEDGEMENT AND CONSENT
Each of the undersigned Persons hereby:
(a) acknowledges and consents to the execution, delivery and performance of
the Waiver, dated as of December __, 1998 (the "Waiver") to the Credit Agreement
dated as of May 28, 1998 (as the same may be amended, supplemented or otherwise
modified from time to time, the "Credit Agreement"), among Xxxxxxx & Xxxxxx
Products Co. (the "Company"), Xxxxxxx & Xxxxxx Canada Inc. ("Xxxxxxx & Xxxxxx
Canada"), Xxxxxxx & Xxxxxx Plastics, Ltd. ("Xxxxxxx & Xxxxxx Plastics", and
collectively with Xxxxxxx & Xxxxxx Canada, the "Canadian Borrowers") Xxxxxxx &
Xxxxxx Corporation ("Holdings"), the several banks and other institutions from
time to time parties to the Credit Agreement (the "Lenders"), Bank of America
National Trust & Savings Association, as documentation agent (in such capacity,
the "Documentation Agent") and The Chase Manhattan Bank, as administrative agent
(in such capacity, the "Administrative Agent") and The Chase Manhattan Bank of
Canada, as Canadian administrative agent (in such capacity, the "Canadian
Administrative Agent"); and
(b) agrees that such execution, delivery and performance shall not in any
way affect such Person's obligations under any Loan Document (as defined in the
Credit Agreement) to which such Person is a party, which obligations on the date
hereof remain absolute and unconditional and are not subject to any defense,
set-off or counterclaim;
Dated: December 22, 1998
XXXXXXX & XXXXXX PRODUCTS CO.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Exec. Vice Pres. &
Chief Financial Officer
XXXXXXX & XXXXXX CANADA INC.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Vice Pres. &
Chief Financial Officer
XXXXXXX & XXXXXX PLASTICS, LTD.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Executive Vice President
2
XXXXXXX & XXXXXX CORPORATION
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Exec. Vice Pres. & CFO
THE AKRO CORPORATION
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Exec. Vice Pres. & CFO
DURA CONVERTIBLE SYSTEMS, INC.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Exec. Vice Pres. & CFO
WICKES ASSET MANAGEMENT, INC.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Vice President
XXXXXXX & XXXXXX INTERNATIONAL
CORPORATION
By: /s/ A. Xxxxxx Xxxxxx
-------------------------------------
Name: A. Xxxxxx Xxxxxx
Title: Vice Pres. & Treasurer
WICKES REALTY, INC.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Vice President
3
AMCO CONVERTIBLE FABRICS, INC.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Exec. Vice Pres. & CFO
XXXXXXX & XXXXXX PLASTICS, INC.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Exec. Vice Pres. & CFO
XXXXXX PLASTICS, INCORPORATED
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Exec. Vice Pres. & CFO
XXXXXXX & XXXXXX EUROPE, INC.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Exec. Vice Pres. & CFO
PACJ, INC.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Exec. Vice Pres. & CFO
XXXXXXX & XXXXXX CARPET & ACOUSTICS (TN),
INC.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Exec. Vice Pres. & CFO
4
XXXXXXX & XXXXXX CARPET & ACOUSTICS (MI),
INC.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Exec. Vice Pres. & CFO
XXXXXXX & XXXXXX AUTOMOTIVE
INTERNATIONAL, INC.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Vice President
XXXXXXX & XXXXXX ASSET SERVICES, INC.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Vice President
CW MANAGEMENT CORPORATION
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Vice President
XXXXXXX SERVICES, INC.
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Vice President
SAF SERVICES CORPORATION
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Vice President
5
XXXXXXX & XXXXXX (GIBRALTAR) LIMITED
By: /s/ J. Xxxxxxx Xxxxx
-------------------------------------
Name: J. Xxxxxxx Xxxxx
Title: Exec. Vice Pres. &
Chief Financial Officer
