AMENDMENT NO. 2 TO INTERCREDITOR AGREEMENTIntercreditor Agreement |
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Exhibit 10-3
AMENDMENT NO. 2 TO INTERCREDITOR AGREEMENT
THIS
AMENDMENT NO. 2 TO INTERCREDITOR AGREEMENT (“Amendment”) dated as
of May 19, 2006 is by and between Wachovia Bank, National Association (as
successor by merger to Congress Financial Corporation) in its capacity as agent
pursuant to the Working Capital Loan and Security Agreement for the lenders who
are party from time to time thereto (in such capacity, together with its
successors and assigns in such capacity, the “Working Capital
Agent”) and Ableco Finance LLC, a Delaware limited liability company, in
its capacity as agent pursuant to the Term Loan and Security Agreement for the
lenders who are party from time to time thereto (in such capacity, together
with its successors and assigns in such capacity, the “Term Loan
Agent”).
WITNESSETH:
WHEREAS,
Working Capital Agent, Working Capital Lenders, Term Loan Agent and Term Loan
Lenders have previously entered into the Intercreditor Agreement, dated as of
December 18, 2003 (the “Intercreditor Agreement”); and
WHEREAS,
Borrowers have requested certain amendments to Working Capital Loan Agreements,
including an increase in the principal amount of the LRG Term Loan outstanding
under the Working Capital Loan Agreements; and
WHEREAS,
Working Capital Agent and Term Loan Agent desire to enter into this Amendment
to confirm that the terms and conditions of the Intercreditor Agreement, as
amended hereby, shall continue to be in full force and effect;
NOW
THEREFORE, in consideration of the mutual benefits accruing to each of the
parties to the Intercreditor Agreement hereunder and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto do hereby agree as follows:
SECTION
1. Interpretation. For purposes of this Amendment, unless otherwise
defined herein, all capitalized terms used herein shall have the meaning given
to them in the Intercreditor Agreement.
SECTION
2. Additional Definitions to Intercreditor Agreement. As used herein,
the following terms shall have the meanings given to them below and the
Intercreditor Agreement is hereby amended to include, in addition and not in
limitation, the following definitions:
2.1
“Amendment No. 8” shall mean Amendment No. 8 to
Amended and Restated Loan and Security Agreement, dated May 18, 2006, by
and among Borrowers, Working Capital Agent and Working Capital Lenders.
SECTION
3. Amendments to Intercreditor Agreement.
3.1
Maximum W/C Debt Section 1.12 of the Intercreditor Agreement is
hereby deleted and the following is substituted therefor:
“1.12 “Maximum
W/C Debt” shall mean the sum of (a) the aggregate outstanding
principal amount of revolving loans and letter of credit accommodations made or
issued pursuant to the Working Capital Loan Agreements up to a maximum amount
equal to the lesser of (i) $20,000,000 or (ii) the amount equal to
(A) the Availability multiplied by (B) 105% plus (b) the
aggregate principal amount of all Term Loans (as such term is defined in the
Working Capital Loan and Security Agreement) outstanding immediately after
giving effect to Amendment No. 8, as reduced by regularly scheduled
payments and prepayments of principal in respect thereof actually received by
Working Capital Agent and applied against the Term Loans (subject to
Section 2.20 of this Intercreditor Agreement); provided, that, the portion
of the aggregate outstanding principal amount of revolving loans and letter of
credit accommodations that are made or issued pursuant to the Working Capital
Loan and Security Agreement but that are not made or issued intentionally or
with actual knowledge that such revolving loans and letter of credit
accommodations cause the aggregate outstanding principal amount of revolving
loans and letter of credit accommodations to exceed the amount equal to the
Availability multiplied by 105% (but do not exceed $20,000,000) calculated at
the time made or issued shall be included, together with interest, fees,
indemnities, costs and expenses arising under the Working Capital Loan
Agreements, in the term “Maximum W/C Debt” as used herein.”
SECTION
4. Amendment No. 8. Term Loan Agent hereby acknowledges that it has
received and reviewed a copy of Amendment No. 8, and to the extent Term
Loan Agent’s consent is or may be required under the Intercreditor
Agreement, Term Loan Agent hereby consents to the terms and provisions as set
forth in Amendment No. 8. The agreement of Term Loan Agent herein should
not be construed to require that Agent seek or imply that Agent is required to
obtain the consent or agreement of Term Loan Agent as to any other matter or
that Term Loan Agent is entitled to consent or agree to any other matter.
Notwithstanding any prohibition set forth in Section 2.20 of the
Intercreditor Agreement with respect to amendments to the Working Capital Loan
Agreements, Term Loan Agent, by its signature below, consents to the increase
in the principal amount of the LRG Term Loan (as such term is defined in the
Working Capital Loan and Security Agreement, after giving effect to Amendment
No.8) and the modification of the due dates of principal payments in respect
thereof, as set forth in Amendment No.8.
SECTION
5. General
5.1
Effect of this Amendment. Except as modified pursuant hereto, no other
changes or modifications to the Intercreditor Agreement are intended or
implied, and in all other respects, the Intercreditor Agreement is hereby
specifically ratified, restated and confirmed by the parties hereto as of the
effective date hereof. To the extent of conflict between the terms of
2
this Amendment and the
Intercreditor Agreement, the terms of this Amendment shall control. The
Intercreditor Agreement and this Amendment shall be read as one agreement.
5.2
Further Assurances. The parties hereto shall execute and deliver such
additional documents and take such additional actions, in each case, as may be
reasonably necessary to effectuate the provisions and purposes of this
Amendment.
5.3
Governing Law. The rights and obligations hereunder of each of the
parties hereto shall be governed by and interpreted and determined in
accordance with the laws of the State of New York (without giving effect to
principles of conflicts of laws).
5.4
Binding Effect. This Amendment shall be binding upon and inure to the
benefit of each of the parties hereto and their respective successors and
assigns.
5.5






