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EXHIBIT 10.33
AMENDED AND RESTATED LIMITED FORBEARANCE AGREEMENT
THIS AMENDED AND RESTATED LIMITED FORBEARANCE AGREEMENT (this
"Agreement") dated as of June 29, 2001, is entered into by and among XXXXXXXX
MANUFACTURING COMPANY, INC., a Texas corporation (the "Borrower"), the financial
institutions listed on the signature pages hereof (collectively, the "Lenders")
and BANK OF AMERICA, N.A., as administrative agent (in such capacity, the
"Administrative Agent") for the Lenders.
WITNESSETH:
WHEREAS, the Borrower, the Lenders and the Administrative Agent are
parties to a Credit Agreement dated as of September 19, 1997 (as amended, the
"Credit Agreement"), and a Limited Forbearance Agreement dated as of February
14, 2001 (as amended, the "Existing Forbearance Agreement"); and
WHEREAS, the Borrower has requested that the Lenders extend and modify
their agreement to forbear from exercising certain rights available to them as a
result of the existing defaults by the Borrower, and the Lenders have agreed to
do so on the terms set forth herein.
NOW, THEREFORE, in consideration of the foregoing, and for other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows:
SECTION 1. DEFINED TERMS. Capitalized terms used herein and not
otherwise defined herein shall have the meanings set forth in the Credit
Agreement.
SECTION 2. LIMITED FORBEARANCE.
2.1 Forbearance and Temporary Amendments.
(a) The Borrower has requested that the Administrative Agent
and the Lenders forbear from exercising the rights and remedies
available to them with respect to the Borrower as a result of the
Subject Events (hereinafter defined) during the period from the date
hereof to and including October 15, 2001. The Administrative Agent and
the Lenders hereby agree to forbear from exercising the rights and
remedies available to them with respect to the Borrower as a result of
the Subject Events, other than Blockage Rights and Support Rights (as
hereinafter defined), from the date hereof to and including October 15,
2001, subject to the terms of this Agreement and subject to the
occurrence of no further Default. Upon the earlier of (i) the
occurrence of any Default, other than as a result of the Subject
Events, or (ii) October 15, 2001, the Administrative Agent's and the
Lenders' agreement herein to forbear from exercising the rights and
remedies available to them with respect to the Borrower as the result
of the Subject Events (other than Blockage Rights and Support Rights)
shall immediately terminate, and the Administrative Agent and the
Lenders shall be entitled immediately to exercise any and all rights
and remedies available under the Credit Agreement and any other Loan
Document, at law, in equity, or otherwise, without notice, demand,
presentment, notice of dishonor, notice of acceleration, notice of
intent to accelerate, protest, or other formalities
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of any kind, all of which are hereby expressly waived by the Borrower.
The Borrower hereby acknowledges its noncompliance with the Credit
Agreement as a result of the Subject Events that have occurred prior to
the date hereof, acknowledges the existence of an Event of Default, and
acknowledges that this Agreement constitutes notice thereof and waives
any and all further notices with respect thereto. The agreement of the
Administrative Agent and the Lenders herein shall not constitute a
waiver of any Default including without limitation the Subject Events.
As used herein, the "Subject Events" means the failure of the Borrower
to comply with the provisions of the Loan Documents described on
Schedule 1 hereto for the periods described on Schedule 1. The parties
hereto expressly acknowledge and agree that the agreements of the
Administrative Agent and the Lenders herein shall not in any manner
restrict or impair any rights or remedies available to them with
respect to any Persons other than the Borrower nor with respect to the
Senior Subordinated Notes (collectively, "Blockage Rights") or the
Support Agreement (collectively, "Support Rights") as a result of the
Defaults which result from the Subject Events.
(b) Effective as of the date hereof through and including the
earlier of (i) the occurrence of any Default, other than as a result of
the Subject Events, (ii) October 15, 2001, or (iii) the date on which
Westar Capital II LLC and/or Westar Capital fulfill their obligations
with respect to the Borrower's fiscal quarters ending on or about
December 31, 2000, March 31, 2001, and/or June 30, 2001, pursuant to
that certain Support Agreement (herein so called) dated as of June 30,
2000, among Westar Capital II LLC, Westar Capital, the Borrower, and
the Administrative Agent, which obligations are comprised of the
Payment Obligation (as defined therein), the Administrative Agent and
Lenders hereby agree to amend the Credit Agreement on a temporary basis
solely with respect to calculations for the periods ending on or before
October 15, 2001, as follows:
(i) the definition of Borrowing Base in the Credit
Agreement shall be the definition provided in subsection (a)
thereof notwithstanding the time periods referenced therein,
and
(ii) the definition of Maximum Borrowing Amount in
the Credit Agreement shall be the definition provided in
subsection (a) thereof notwithstanding the time periods
referenced therein.
Upon the earlier of the occurrence of any Default other than as the
result of the Subject Events, October 15, 2001, or payment of the
Payment Obligation (as defined in the Support Agreement), the temporary
amendments provided in this Section 2.1(b) shall immediately terminate
without notice, the definitions of the Borrowing Base and the Maximum
Borrowing Amount shall return to those calculations as in effect
immediately prior to the effectiveness of this Agreement, and any
prepayments required pursuant to Section 2.5(b) of the Credit Agreement
for periods during which this temporary amendment was otherwise
effective shall be immediately due and payable as if this Agreement had
never been in effect and without notice, demand, presentment, notice of
dishonor, notice of acceleration, notice of intent to accelerate,
protest, or other formalities of any kind, all of which are hereby
expressly waived by the Borrower.
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2.2 Other Agreements. To induce the Administrative Agent and Lenders to
enter into this Agreement, the Borrower hereby agrees as follows:
(a) Effective as of February 14, 2001, the Lenders shall have
no obligation to make Advances to the Borrower and the Issuing Bank
shall have no obligation to issue Letters of Credit for the account of
the Borrower.
(b) Effective as of February 14, 2001, accrued but unpaid
interest on the Advances outstanding from time to time and the fee
payable pursuant to Section 2.15(f)(i) with respect to outstanding
Letters of Credit shall be due and payable on the 15th day of each
calendar month commencing on May 15, 2001, on the last day of each
calendar month, and on the Revolving Commitment Maturity Date, the
Facility A Term Loan Maturity Date or the Facility B Term Loan Maturity
Date, as appropriate.
(c) Effective as of February 14, 2001, Section 7.5(c) is
amended to add the following phrase at the beginning thereof: "with
respect to asset sales which occurred on or prior to February 14, 2001
only,".
(d) Effective as of February 14, 2001, the Borrower hereby
irrevocably waives any rights it may now or hereafter have under
Section 8.3 of the Credit Agreement, including without limitation, any
rights to cure any defaults.
(e) The Borrower hereby acknowledges its agreement to promptly
pay all reasonable out-of-pocket costs, fees and expenses incurred by
the Administrative Agent and each Lender including without limitation
reasonable fees and expenses of counsel for the Administrative Agent,
each Lender, and the Financial Advisor (hereinafter defined).
(f) Effective as of February 14, 2001, the Borrower hereby
acknowledges and agrees that, upon the expiration of any Interest
Period applicable to any Advance outstanding on the date of this
Agreement, it shall not be permitted to continue any such Advance as,
or convert any such Advance to, a LIBOR Advance.
(g) The Borrower hereby acknowledges and agrees that the
Support Agreement and the obligations and agreements therein constitute
Collateral pursuant to the General Security Agreement.
(h) Effective as of February 14, 2001, all notices to be
provided to the Administrative Agent shall be provided as follows:
Xxxx X. Xxxxxxx
Bank of America, N.A.
000 Xxxx Xxxxxx, 00xx Xxxxx
Xxxxxx, Xxxxx 00000
Telephone: (000) 000-0000
Fax: (000) 000-0000
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with a copy to: Xxxxxxxx Xxxxxxxx & Xxxxxx P.C.
Attention: Xxx X. Xxxxxxx/Xxxxxxx X. Xxxxxxx
5400 Renaissance Tower
0000 Xxx Xxxxxx
Xxxxxx, Xxxxx 00000
Telephone: (000) 000-0000
Fax: (000) 000-0000
(i) Effective as of April 13, 2001, the Borrower will deliver
to the Administrative Agent the following financial reports:
(1) the Borrower will deliver on or before Thursday of
each week a 13-week rolling cash flow forecast
(including forecasting of receipts and
disbursements).
(2) the Borrower will deliver on or before Thursday of
each week a variance report delineating all material
variances from the prior week's forecast of receipts
and disbursements.
(3) the Borrower will deliver on or before Thursday of
each week a report with respect to its aggregate
Eligible Accounts as of the end of the prior week.
(j) Notwithstanding anything to the contrary contained in
Section 2.5(b) of the Credit Agreement, with respect to any month
ending on or after April 30, 2001, but on or before May 31, 2001, the
Borrower shall be required to immediately repay Revolving Credit
Advances only to the extent that on such date the aggregate principal
amount of Revolving Credit Advances and Reimbursement Obligations
outstanding under the Credit Agreement exceed the Borrowing Base then
in effect by a sum in excess of $100,000.
(k) Effective as of June 30, 2001, the Borrower will deliver
the duly completed Compliance Certificate setting forth the calculation
of the Borrowing Base monthly on or before 30 days after the end of
each fiscal month and in any event no later than the time financial
statements are furnished pursuant to Sections 6.1, 6.2 and 6.3 of the
Credit Agreement.
(l) The Borrower agrees to pay to the Administrative Agent,
for the pro rata benefit of the Lenders, a facility fee in the amount
of $125,000, which fee shall be earned and due and payable on September
10, 2001, provided that payment thereof shall be deferred until the
earlier of October 15, 2001, or the date on which the Borrower, the
Administrative Agent, and the Lenders enter into an agreement
satisfactory to each of them with respect to a restructuring of the
Obligations.
(m) If the Borrower executes and delivers this Agreement to
the Administrative Agent and satisfies the conditions precedent to the
effectiveness hereof on or before September 28, 2001, for so long as
the Lenders' agreement to forbear provided in this Agreement is
effective and no further Default occurs, the Obligations shall bear
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interest at the Default Rate only from July 16, 2001 through August 30,
2001, and shall thereafter bear interest at the rates contemplated by
Sections 2.3(a) and (b) of the Credit Agreement. Such incremental
interest shall be earned and due and payable as of August 30, 2001,
provided that payment thereof shall be deferred until the date on which
the Borrower, the Administrative Agent, and the Lenders enter into an
agreement satisfactory to each of them with respect to a restructuring
of the Obligations.
(n) Effective as of the date hereof, the definition of
Eligible Accounts in the Credit Agreement shall be amended to read in
the form attached hereto as Schedule 2.
SECTION 3. REPRESENTATIONS AND WARRANTIES. The Borrower represents and
warrants to the Lenders and the Administrative Agent that:
3.1 Authorization; No Conflict. The execution and delivery by the
Borrower of this Agreement and the performance by the Borrower of its
obligations under the Credit Agreement have been duly authorized by all
necessary corporate action, do not require any filing or registration with or
approval or consent of any governmental agency or authority, do not and will not
conflict with, result in any violation of, or constitute any default under any
provision of the certificate of incorporation or by-laws of the Borrower or any
material agreement or other document binding upon or applicable to the Borrower
(or any of its properties) or any law or governmental regulation or court decree
or order applicable to the Borrower, and will not result in or require the
creation or imposition of any Lien on any of the properties of the Borrower
pursuant to the provisions of any agreement binding upon or applicable to the
Borrower.
3.2 Due Execution; Enforceability. This Agreement has been duly
executed and delivered by the Borrower and, together with the Credit Agreement,
is a legal, valid and binding obligation of the Borrower, enforceable in
accordance with its terms subject, as to enforcement only, to bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the
enforceability of the rights of creditors generally and to general principles of
equity (regardless of whether enforcement is sought in equity or at law).
3.3 Reaffirmation of Representations and Warranties. The
representations and warranties contained in the Credit Agreement and the other
Loan Documents (except for those contained in Sections 4.1(k) and 4.1(u) of the
Credit Agreement, Section 2.1(c) of the Deeds of Trust, and, solely as a result
of the Subject Events, Section 4.1(o) of the Credit Agreement) are true and
correct in all material respects on the date of this Agreement after giving
effect to the effectiveness hereof (other than any such representations and
warranties that by their terms refer to a specific date, in which case as of
such specific date).
SECTION 4. CONDITIONS PRECEDENT. This Agreement shall become effective
as of June 29, 2001, upon satisfaction of all of the following conditions (such
date is herein called the "Agreement Effective Date"):
4.1 Receipt of Agreement. The Administrative Agent shall have received
counterparts of this Agreement sufficient in number to provide one for each
Lender, duly executed by the Borrower, Lenders, and the Administrative Agent.
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4.2 Default. No Default shall have occurred and be continuing other
than any Default which results solely from the Subject Events.
4.3 Payment of Interest and Fees. The Administrative Agent shall have
received confirmation that the Borrower has paid all reasonable expenses and
fees arising in connection with all matters undertaken or performed at the
request of the Administrative Agent or the Lenders, including but not limited
to, all expenses and fees owed to Xxxxxxxx Xxxxxxxx & Xxxxxx P.C. and Xxxxxx
Xxxxxxxx LLP ("Financial Advisor"), and accrued interest on the Obligations at
the non-Default Rate through August 31, 2001.
4.4 Cooperation. The Borrower shall have cooperated with Financial
Advisor and Xxxxxxxx Xxxxxxxx & Xxxxxx P.C. in all of their due diligence
inquiries.
4.5 Fee. The Administrative Agent shall have received, for the pro rata
benefit of the Lenders, a forbearance fee in the amount of $100,000.
4.6 Additional Information. The Administrative Agent shall have
received such additional documents, instruments and information as the
Administrative Agent or its legal counsel, Xxxxxxxx Xxxxxxxx & Xxxxxx P.C., may
reasonably request.
4.7 Compliance Certificate. The Administrative Agent shall have
received the duly completed Compliance Certificate due pursuant to Section 6.4
of the Credit Agreement for the months ended on or about June 30, 2001, and July
31, 2001.
4.8 Notices. The Borrower shall have provided to the Administrative
Agent true and correct copies of all notices provided to Westar Capital II LLC,
Westar Capital, and any other Specified Investors with respect to defaults under
Section 7.11, 7.12, 7.13 or 7.21 of the Credit Agreement and any responsive or
related correspondence received from any Specified Investors.
SECTION 5. Miscellaneous.
5.1 Expenses. The Borrower agrees to pay on demand all reasonable costs
and expenses of the Administrative Agent (including fees, charges and expenses
of counsel for the Administrative Agent and the Financial Advisor) in connection
with the preparation, negotiation, execution, delivery and administration of
this Agreement and all other instruments or documents provided for herein or
delivered or to be delivered hereunder or in connection herewith. In addition,
the Borrower agrees to pay, and save the Administrative Agent and the Lenders
harmless from all liability for, any stamp or other taxes which may be payable
in connection with the execution or delivery of this Agreement, the borrowings
under the Credit Agreement, and the execution and delivery of any instruments or
documents provided for herein or delivered or to be delivered hereunder or in
connection herewith. All obligations provided in this Section 5.1 shall survive
any termination of this Agreement and the Credit Agreement.
5.2 Captions. Section captions used in this Agreement are for
convenience only and shall not affect the construction of this Agreement.
5.3 Governing Law. THIS AGREEMENT SHALL BE A CONTRACT MADE UNDER AND
GOVERNED BY THE LAWS OF THE STATE OF TEXAS, WITHOUT
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REGARD TO CONFLICT OF LAWS PRINCIPLES. Wherever possible each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable laws, but if any provision of this Agreement shall be prohibited by
or invalid under such laws, such provision shall be ineffective to the extent of
such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.
5.4 Counterparts. This Agreement may be executed in any number of
counterparts, and by the parties hereto on the same or separate counterparts,
and each such counterpart, when executed and delivered (including by facsimile),
shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same Agreement. Telecopies of signatures shall be
binding and effective as originals.
5.5 Reference to Loan Documents. The Credit Agreement and the other
Loan Documents shall remain in full force and effect and are hereby ratified in
all respects. The Borrower hereby additionally ratifies and confirms its
obligations pursuant to the Temporary Credit Facility and all documents and
instruments executed pursuant thereto or in connection therewith and further
agrees that its obligations thereunder are not subject to any claim, offset,
defense or counterclaim.
5.6 Successors and Assigns. This Agreement shall be binding upon the
parties hereto and their respective successors and assigns, and shall inure to
the sole benefit of the parties hereto and the successors and assigns of the
Administrative Agent and the Lenders. Notwithstanding the foregoing, the
Borrower shall not assign its rights or duties hereunder without the consent of
the Administrative Agent and the Lenders.
5.7 RELEASE.
(a) The Borrower hereby unconditionally and irrevocably
remises, acquits, and fully and forever releases and discharges the
Administrative Agent and the Lenders and all respective affiliates and
subsidiaries of the Administrative Agent and the Lenders, their
respective officers, servants, employees, agents, attorneys,
principals, directors, trustees and shareholders, and their respective
heirs, legal representatives, successors and assigns (collectively, the
"Released Lender Parties") from any and all claims, demands, causes of
action, remedies, suits, damages and liabilities (collectively, the
"Borrower Claims") of any nature whatsoever, whether now known,
suspected or claimed, whether arising under common law, in equity or
under statute, which the Borrower ever had or now has against the
Released Lender Parties which may have arisen at any time on or prior
to the date of this Agreement and which were in any manner related to
any of the Loan Documents or the enforcement or attempted enforcement
by the Administrative Agent or the Lenders of rights, remedies or
recourses related thereto.
(b) The Borrower covenants and agrees never to commence,
voluntarily aid in any way, prosecute or cause to be commenced or
prosecuted against any of the Released Lender Parties any action or
other proceeding based upon any of the Borrower Claims which may have
arisen at any time on or prior to the date of this Agreement and were
in any manner related to any of the Loan Documents.
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(c) The agreements of the Borrower set forth in this Section
5.7 shall survive termination of this Agreement.
5.8 Acknowledgment of the Borrower. The Borrower acknowledges and
agrees that the Lenders and the Administrative Agent executing this Agreement
have done so in their sole discretion and without any obligation. The Borrower
further acknowledges and agrees that any action taken or not taken by the
Lenders or the Administrative Agent prior to, on or after the date hereof shall
not constitute a waiver or modification of any terms, covenant or provision of
any Loan Document other than as specified herein or prejudice any rights or
remedies other than as specified herein which the Administrative Agent or any
Lender now has or may have in the future under any Loan Document, applicable law
or otherwise, all of which rights and remedies are expressly reserved by the
Administrative Agent and the Lenders. The Borrower hereby ratifies and confirms
its obligations under the Loan Documents.
5.9 Loan Document. This Agreement is a Loan Document and is subject to
all provisions of the Credit Agreement applicable to Loan Documents, all of
which are incorporated in this Agreement by reference the same as if set forth
in this Agreement verbatim.
5.10 NO ORAL AGREEMENTS. THIS WRITTEN AGREEMENT AND THE OTHER LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE
PARTIES. This Agreement amends and restates in its entirety the Existing
Forbearance Agreement.
[Balance of this Page Intentionally Left Blank]
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Executed and delivered as of the day and year first above written.
BORROWER:
XXXXXXXX MANUFACTURING COMPANY, INC.
By /s/ XXXXX XXXXXXX
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Name: Xxxxx Xxxxxxx
---------------------------------
Title: V.P. and Chief Financial Officer
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SIGNATURE PAGE to Amended and Restated Limited Forbearance Agreement
dated as of June 29, 2001, among Xxxxxxxx Manufacturing Company, Inc., Bank of
America, N.A., as Administrative Agent, and the Lenders party thereto.
ADMINISTRATIVE AGENT AND LENDER:
BANK OF AMERICA, N.A., as
Administrative Agent and as a Lender
By /s/ XXXX X. XXXXXXX III
---------------------------------------
Xxxx X. Xxxxxxx III
Managing Director
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SIGNATURE PAGE to Amended and Restated Limited Forbearance Agreement
dated as of June 29, 2001, among Xxxxxxxx Manufacturing Company, Inc., Bank of
America, N.A., as Administrative Agent, and the Lenders party thereto.
BANK AUSTRIA CREDITANSTALT
CORPORATE FINANCE, INC., as a Lender
By /s/ XXXXX X. XXXXXX
---------------------------------------
Name: Xxxxx X. Xxxxxx
---------------------------------
Title: Vice President
--------------------------------
By /s/ XXXXXXX X. Xxxxxxxxx
---------------------------------------
Name: Xxxxxxx X. Xxxxxxxxx
---------------------------------
Title: Vice President
--------------------------------
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SIGNATURE PAGE to Amended and Restated Limited Forbearance Agreement
dated as of June 29, 2001, among Xxxxxxxx Manufacturing Company, Inc., Bank of
America, N.A., as Administrative Agent, and the Lenders party thereto.
COMERICA BANK, as a Lender
By /s/ XXXXX XXXX
---------------------------------------
Name: Xxxxx Xxxx
---------------------------------
Title: Vice President
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SIGNATURE PAGE to Amended and Restated Limited Forbearance Agreement
dated as of June 29, 2001, among Xxxxxxxx Manufacturing Company, Inc., Bank of
America, N.A., as Administrative Agent, and the Lenders party thereto.
HSBC BANK USA, as a Lender
By /s/ D. C. ENGLISH
----------------------------------------
Name: D. C. English
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Title: Associate Director
---------------------------------
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SIGNATURE PAGE to Amended and Restated Limited Forbearance Agreement
dated as of June 29, 2001, among Xxxxxxxx Manufacturing Company, Inc., Bank of
America, N.A., as Administrative Agent, and the Lenders party thereto.
IMPERIAL BANK, as a Lender
By /s/ XXXXX XXXX
---------------------------------------
Name: Xxxxx Xxxx
---------------------------------
Title: Vice President
--------------------------------
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SIGNATURE PAGE to Amended and Restated Limited Forbearance Agreement
dated as of June 29, 2001, among Xxxxxxxx Manufacturing Company, Inc., Bank of
America, N.A., as Administrative Agent, and the Lenders party thereto.
ARCHIMEDES FUNDING, LLC., as a Lender
By: ING Capital Advisors LLC,
as Collateral Manager
By /s/ XXXX XXXXXXXX
-----------------------------------
Name: Xxxx Xxxxxxxx
-----------------------------
Title: Vice President
----------------------------
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SIGNATURE PAGE to Amended and Restated Limited Forbearance Agreement
dated as of June 29, 2001, among Xxxxxxxx Manufacturing Company, Inc., Bank of
America, N.A., as Administrative Agent, and the Lenders party thereto.
ML CLO XII PILGRIM AMERICA (CAYMAN)
Ltd., as a Lender
By: ING Pilgrim Investments,
as its investment manager
By: /s/ XXXXXXX X. XXXXXXX
----------------------------------
Name: Xxxxxxx X. Xxxxxxx
----------------------------
Title: Senior Vice President
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SIGNATURE PAGE to Amended and Restated Limited Forbearance Agreement
dated as of June 29, 2001, among Xxxxxxxx Manufacturing Company, Inc., Bank of
America, N.A., as Administrative Agent, and the Lenders party thereto.
XXXXXX XXXXXXX XXXX XXXXXX
PRIME INCOME TRUST, as a Lender
By: /s/ XXXXX XXXXXXX
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Name: Xxxxx Xxxxxxx
---------------------------------
Title: Vice President
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SIGNATURE PAGE to Amended and Restated Limited Forbearance Agreement
dated as of June 29, 2001, among Xxxxxxxx Manufacturing Company, Inc., Bank of
America, N.A., as Administrative Agent, and the Lenders party thereto.
KZH SOLEIL LLC, as a Lender
By: /s/ XXXXX XXX
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Name: Xxxxx Xxx
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Title: Authorized Agent
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SIGNATURE PAGE to Amended and Restated Limited Forbearance Agreement
dated as of June 29, 2001, among Xxxxxxxx Manufacturing Company, Inc., Bank of
America, N.A., as Administrative Agent, and the Lenders party thereto.
ARK CLO 2000-1, LIMITED, as a Lender
By: Patriarch Partners, LLC,
its Collateral Manager
By: /s/ XXXXXX X. XXXXX
----------------------------------
Name: Xxxxxx X. Xxxxx
----------------------------
Title: Authorized Signatory
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SIGNATURE PAGE to Amended and Restated Limited Forbearance Agreement
dated as of June 29, 2001, among Xxxxxxxx Manufacturing Company, Inc., Bank of
America, N.A., as Administrative Agent, and the Lenders party thereto.
Long Drive Management Trust agrees on behalf of Tri-Links Investment
Trust to the terms of the Amended and Restated Limited Forbearance Agreement
dated as of June 29, 2001 (as amended, the "Agreement") solely in its capacity
as a Lender, it being understood that the terms of the Agreement shall not apply
to Tri-Links Investment Trust in its capacity as a holder of bonds issued by
Xxxxxxxx Manufacturing Company, Inc. or to any other claims against Xxxxxxxx
Manufacturing Company, Inc. held by Tri-Links Investment Trust.
TRI-LINKS INVESTMENT TRUST, as a Lender
By: /s/ XXXXX X. VAVANSKY, JR.
---------------------------------------
Name: Xxxxx X. Vavansky, Jr.
---------------------------------
Title: Vice President
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SIGNATURE PAGE to Amended and Restated Limited Forbearance Agreement
dated as of June 29, 2001, among Xxxxxxxx Manufacturing Company, Inc., Bank of
America, N.A., as Administrative Agent, and the Lenders party thereto.
ACKNOWLEDGED AND AGREED to by the following Persons, each of whom
hereby acknowledges and agrees that its obligations under the Support Agreement
are not released, diminished, impaired, reduced, or otherwise adversely affected
by the Agreement as amended hereby, and consents and agrees to this Amendment's
execution and delivery.
WESTAR CAPITAL II LLC, as a Lender
By: /s/ XXXX X. XXXXX
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Name: Xxxx X. Xxxxx
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Title: Managing Member
--------------------------------
WESTAR CAPITAL, as a Lender
By: /s/ XXXX X. XXXXX
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Name: Xxxx X. Xxxxx
---------------------------------
Title: Managing Member
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Reference is made to that certain Amended and Restated Limited
Forbearance Agreement (the "Agreement") dated as of June 29 2001, among Xxxxxxxx
Manufacturing Company, Inc., Bank of America, N.A., as Administrative Agent, and
the Lenders party thereto. Reference is also hereby made to that certain Credit
Agreement dated as of August 12, 1999, among the Borrower, Bank of America, N.A.
as Administrative Agent, and the lenders party thereto. Bank of America, N.A.,
as Administrative Agent and as the sole Lender thereunder hereby agrees to
forbear from exercising the rights and remedies available to them with respect
to the Borrower only (and not with respect to any other Obligor as defined
therein or with respect to the Senior Subordinated Notes or the holders thereof)
under such Credit Agreement and the other Loan Documents as defined therein as a
result of Events of Default which exist thereunder solely as a result of the
Subject Events for the period and to the extent specified in this Agreement.
Executed as of June 29, 2001.
BANK OF AMERICA, N.A., as
Administrative Agent and as Lender
By: /s/ XXXX XXXXXXX
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Xxxx Xxxxxxx, Managing Director
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SCHEDULE 1
SUBJECT EVENTS
1. Existing Events of Default by reason of the Borrower's failure to
comply with Section 7.11 (Maximum Leverage Ratio), Section 7.12 (Minimum Fixed
Charge Coverage Ratio), Section 7.13 (Interest Coverage Ratio), and Section 7.21
(Senior Leverage Ratio) for the Borrower's fiscal quarters ending December 31,
2000, March 31, 2001, June 30, 2001, and September 30, 2001.
2. Existing Events of Default by reason of the Borrower's failure to
comply with Section 2.2(k) of certain of the Deeds of Trust.
3. Events of Default under Section 8.1(o) of the Credit Agreement by
reason of the Specified Investors' failure to make the payments required under
the Support Agreement for Borrower's fiscal quarter ended December 30, 2000,
March 31, 2001, and June 30, 2001.
4. Events of Default under Section 8.1(b)(i) and 8.1(j) of the Credit
Agreement by reason of the Borrower's failure to pay the principal amounts of
the Facility A Term Loan Advances and of the Facility B Term Loan Advances due
and payable on March 31, 2001, June 30, 2001, and September 30, 2001.
5. An Event of Default under Section 8.1(j) of the Credit Agreement by
reason of the Borrower's failure to make the interest payments due on March 15,
2001, and September 15, 2001 under the Senior Subordinated Notes.
6. Events of Default (if any) under Section 8.1(g)(v) of the Credit
Agreement as a result of failure to pay when due principal amounts of the
Facility A Term Loan Advances and the Facility B Term Loan Advances, interest
due under the Senior Subordinated Notes, and lease payments.
7. Events of Default under Section 8.1(m) of the Credit Agreement with
respect to inventory and molds located outside the United States with aggregate
values not to exceed $650,000 and $250,000, respectively, and registrations of
intellectual property outside the United States.
8. Events of Default resulting from the Borrower's failure to receive
an unqualified audit report pursuant to Section 6.3(a) of the Credit Agreement,
the failure of the Borrower to comply with Section 6.3(b) of the Credit
Agreement, or the failure of the Borrower to comply with Section 6.3(c) of the
Credit Agreement.
9. Events of Default arising from failure by the Borrower to timely
provide financial statements for the month of July 2001 and the related
Compliance Certificate.
10. An Event of Default under Section 8.1(j) of the Credit Agreement by
reason of the Borrower's failure to pay the principal amount due pursuant to
that certain Credit Agreement dated as of August 12, 1999, among the Borrower,
Bank of America, N.A. as Administrative Agent, and Bank of America, N.A. as
Lender, upon the maturity thereof on September 28, 2001.
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SCHEDULE TO TERM SHEET AND SCHEDULE 2 TO AMENDED AND RESTATED LIMITED
FORBEARANCE AGREEMENT
Definition of Eligible Accounts
"Eligible Accounts" means at the time of any determination thereof,
each Account as to which the following requirements have been fulfilled to the
reasonable satisfaction of the Administrative Agent:
(a) The Borrower or any Subsidiary of the Borrower has lawful
and absolute title to such Account;
(b) Such Account is a valid, legally enforceable obligation of
the Person who is obligated under such Account (the "account debtor")
for goods or services delivered or rendered to such Person;
(c) If such Account and other Accounts are owed by a Creditor
of the Borrower or any Subsidiary of the Borrower, the amount of all
such Accounts included as Eligible Accounts shall be the amount by
which all such Accounts exceeds the aggregate accounts payable (other
than rebates and co-op advertising obligations not yet due and payable)
owed by the Borrower or such Subsidiary to such Creditor;
(d) There has been excluded from such Account any portion that
is subject to any asserted dispute, offset, discount, counterclaim or
other claim or defense on the part of the account debtor or to any
asserted claim on the part of the account debtor denying liability
under such Account;
(e) The Borrower or any Subsidiary of the Borrower has full
and unqualified right to assign and grant a security interest in such
Account to Administrative Agent as security for the Obligations;
(f) Such Account is evidenced by an invoice rendered to the
account debtor which requires payment of amounts due thereunder no more
than 120 days from invoice date (and is not evidenced by chattel paper,
promissory note or other instrument payable to the Borrower or any
Subsidiary of the Borrower) and is not the result of a conditional
sales contract or agreement;
(g) Such Account is not more than 90 days past due according
to the original terms of sale; provided, that no Accounts from an
account debtor shall constitute Eligible Accounts if a Responsible
Officer of the Borrower or any Subsidiary of the Borrower has knowledge
that 25% or more of the aggregate dollar amount of all Accounts owed to
the Borrower or any Subsidiary of the Borrower by such account debtor
are more than 90 days past due according to the original terms of sale
unless the payments of such Accounts are insured for a reasonable
period sufficient to facilitate collection under such insurance
pursuant to insurance policies provided by nationally
25
recognized insurers upon terms no less favorable to the Borrower than
those provided to similar businesses pursuant to similar arrangements,
copies of all such policies having previously been provided to the
Administrative Agent (in which event such Accounts shall be included
net of any copayments and deductibles related thereto and other amounts
not payable to the Borrower or the applicable Subsidiary by the
insurer);
(h) No account debtor in respect of such Account is (i)
primarily conducting business in and organized under the laws of any
jurisdiction located outside the United States of America or Canada
unless the payments of such Accounts are (A) insured in a manner
satisfactory to the Administrative Agent or (B) supported in full by an
irrevocable letter of credit, (ii) the subject of a proceeding under
any Debtor Relief Laws or (iii) a Tribunal;
(i) No account debtor in respect of such Account is (i) an
Affiliate of the Borrower or any Subsidiary or (ii) an employee of the
Borrower or any Subsidiary of the Borrower; and
(j) Such Account is (i) subject to a fully perfected first
priority security interest in favor of Administrative Agent pursuant to
the Loan Documents, prior to the rights of, and enforceable as such
against, any other Person (including holders of a purchase money
security interest) and (ii) not subject to any Lien in favor of any
other Person other than Permitted Collateral Liens.