Exhibit 10.1
AMENDMENT NO. 4 TO SECOND
AMENDED AND RESTATED
CREDIT
AGREEMENT
THIS AMENDMENT, dated as of
July 9, 2009, by and between Manitex International, Inc., a
Michigan corporation formerly known as Veri-Tek International,
Corp., and Manitex Inc., a Texas corporation (the
“Companies”, and individually a “Company”),
and Comerica Bank (“Bank”).
WITNESSETH:
WHEREAS, Companies and Bank entered
into that certain Second Amended and Restated Credit Agreement
dated April 11, 2007, as amended (the
“Agreement”); and
WHEREAS, Companies and Bank wish to
amend further the Agreement;
NOW, THEREFORE, Companies and Bank
agree as follows:
1. The definition of
“Revolving Credit Maturity Date” is amended by deleting
the date April 1, 2010 where it appears therein and replacing
it with the date April 1, 2012.
2. The definition of
“Borrowing Base” is amended to read as
follows:
“Borrowing Base” shall
mean, as of any determination, the sum of (a) eighty-five
percent (85%) of Eligible Accounts, plus (b) eighty-five
percent (85%) of Eligible Canadian Accounts, plus (c) the
lesser of (i) the Applicable Inventory Percentage of Eligible
Inventory and (ii) $9,500,000.
3. Subsection (c) of the
definition of “Eligible Account” is amended to read as
follows:
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(c)
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(i) it
arises from the sale or lease of goods and such goods have been
shipped or delivered to the Account Debtor under such Account, or
it arises from services rendered and such services have been
performed; or (ii) it is on “Bill and Hold” terms,
subject to documentation satisfactory to Bank in its sole
discretion; provided, however, the aggregate amount of such
accounts does not exceed $5,000,000 (pre-margin);
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4. The definition of “Letter
of Credit” is amended to read as follows:
“Letter of Credit” shall
have the meaning set forth in Section 2.5.
5. Section 1 of the Agreement
(Definitions) is amended by adding the following definitions in
their appropriate alphabetical order:
“Applicable Inventory
Percentage” shall mean (i) sixty percent (60%) from
June , 2009 through December 30, 2009,
(ii) fifty-eight percent (58%) from December 31,
2009 through June 29, 2010, (iii) fifty-five percent
(55%) from June 30, 2010 through December 30, 2010,
(iv) fifty-three percent (53%) from December 31,
2010 through June 29, 2011, and (v) fifty percent
(50%) from and after June 30, 2011.
“Base Tangible Effective Net
Worth” shall initially mean $3,300,000 on December 31,
2009. Commencing on March 31, 2010, and on the last day of
each fiscal quarter thereafter, Base Tangible Effective Net Worth
shall permanently increase by an amount equal to fifty percent
(50%) of Consolidated net income of Holdings and its
Subsidiaries for the fiscal quarter then ending. If there is a
loss, net income shall be deemed to be $0.
6. Section 2 of the Agreement
is amended to read in its entirety as follows:
2.1 Bank agrees to make Advances to
Manitex at any time and from time to time from the effective date
hereof until the Revolving Credit Maturity Date, not to exceed the
Revolving Credit Maximum Amount in aggregate principal amount at
any one time outstanding. Advances under this Section 2 shall
be evidenced by the Revolving Credit Note under which advances,
repayments and readvances may be made, subject to the terms and
conditions of the Revolving Credit Note.
2.2 The Revolving Credit Note shall
bear interest from the date hereof on the unpaid principal balance
thereof from time to time outstanding as set forth in the Revolving
Credit Note. Interest shall be computed, assessed and payable as
provided in the Revolving Credit Note.
2.3 Proceeds of Advances under the
Revolving Credit Note shall be used solely for general corporate
and working capital purposes.
2.4 The aggregate principal amount
at any one time outstanding under the Revolving Credit Note plus
the Letter of Credit Reserve shall never exceed the lesser of the
Revolving Credit Maximum Amount and the Borrowing Base. Manitex
shall immediately make all payments necessary to comply with this
provision.
2.5 In addition to Advances under
the Revolving Credit Note, Bank further agrees to issue, or commit
to issue, from time to time, standby letters of credit for the
account of Manitex (herein individually called a “Letter of
Credit” and collectively “Letters of Credit”) in
aggregate undrawn amounts not to exceed One Million Dollars
($1,000,000) at any one time outstanding; provided, however, that
the sum of the aggregate amount of Advances outstanding under the
Revolving Credit
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Note plus the Letter of Credit
Reserve shall not exceed the lesser of the Revolving Credit Maximum
Amount and the Borrowing Base at any one time; and provided further
that no Letter of Credit shall, by its terms, have an expiration
date which extends beyond the fifth (5 th ) Business Day before the Revolving Credit
Maturity Date or one (1) year after issuance, whichever first
occurs. In addition to the terms and conditions of this Agreement,
the issuance of any Letters of Credit shall also be subject to the
terms and conditions of any letter of credit applications and
agreements executed and delivered by Manitex to Bank with respect
thereto. Manitex shall pay to Bank annually in advance a per annum
Letter of Credit issuance fee equal to a rate to be negotiated
between Manitex and Company.
7. Section 4 of the Agreement
is amended to read in its entirety as follows:
“[Reserved].”
8. Section 5 of the Agreement
is amended to read in its entirety as follows:
“[Reserved].”
9. Section 8.11 of the
Agreement is amended to read in its entirety as follows:
8.11 (a) Maintain, as of the
last day of each fiscal quarter ending during the periods specified
below, Tangible Effective Net Worth of not less than the
following:
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Tangible Effective Net Worth
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At 09/29/09
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$
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1,700,000
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At 9/30/09
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$
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2,100,000
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At 12/31/09
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$
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3,300,000
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03/31/10 and at
each fiscal quarter-end thereafter
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Base Tangible Effective Net Worth
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(b) Maintain, as of the last day of
each fiscal quarter, ending during the periods specified below,, a
Debt Service Coverage Ratio of not less than the
following:
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Debt Service Coverage Ratio
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6/30/2009 through 03/30/10
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1.1. to 1.0
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03/31/10 and at each fiscal quarter-end
thereafter
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1.25 to 1.0
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10. Exhibit A to the
Agreement (Revolving Credit Note) is deleted and replaced with
Exhibit A attached hereto.
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11. Exhibit C to the
Agreement (Compliance Report) is deleted and replaced with
Exhibit C attached hereto.
12. This Amendment may be executed
in counterparts, of which this is one, all of which shall
constitute one and the same instrument.
13. Except as modified hereby, all
of the terms and conditions of the Agreement shall remain in full
force and effect. Capitalized terms used but not defined herein
shall have the meanings given them in the Agreement.
14. Each Company hereby represents
and warrants that, after giving effect to the amendment contained
herein, (a) execution, delivery and performance of this
Amendment and any other documents and instruments required under
this Amendment or the Agreement are within such Company’s
corporate powers, have been duly authorized, are not in
contravention of law or the terms of such Company’s Articles
of Incorporation or Bylaws, and do not require the consent or
approval of any governmental body, agency, or authority; and this
Amendment and any other documents and instruments required under
this Amendment or the Agreement, will be valid and binding in
accordance with their terms; (b) the continuing
representations and warranties of such Company set forth in
Sections 7.1 through 7.15 of the Agreement are true and correct on
and as of the date hereof with the same force and effect as if made
on and as of the date hereof; (c) no Default or Event of
Default has occurred and is continuing as of the date
hereof.
15. This Amendment shall be
effective upon (a) execution of this Amendment by Companies
and Bank, (b) execution by Manitex of a new Revolving Credit
Note, and (c) payment by the Companies to Bank of the
non-refundable amendment fee in the amount of One Hundred Two
Thousand Five Hundred Dollars ($102,500).
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WITNESS the due execution hereof as
of the day and year first above written.
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BANK:
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COMPANIES:
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COMERICA
BANK
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MANITEX
INTERNATIONAL, INC.
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By:
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By:
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Its:
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Vice President
& AGM
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Its:
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Vice President
and CFO
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MANITEX,
INC.
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By:
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Its:
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Vice President
and CFO
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EXHIBIT
“A”