Exhibit
4.3
FIFTH AMENDMENT
TO
CREDIT
AGREEMENT
THIS FIFTH AMENDMENT (“Amendment”)
dated as of August 6, 2008, by and between Superior Materials, LLC
and BWB, LLC, each a Michigan limited liability company
(“Companies”) and Comerica Bank
(“Bank”).
RECITALS:
A. Companies
and Bank entered into a Credit Agreement dated as of April 6, 2007,
as amended by four amendments (“Agreement”).
B. Companies
and Bank desire to amend the Agreement as hereinafter set
forth.
NOW, THEREFORE, the parties agree as
follows:
1. The following definitions in Section 1 of the
Agreement are amended to read as follows:
“‘Applicable Fee Percentage’
shall mean, as of any date of determination thereof, one quarter of
one percent (1/4%) per annum.
‘Applicable L/C Commission Rate’
shall mean as of any date of determination thereof, two and one
quarter percent (2 ¼%) per annum.
‘Applicable Margin’ shall mean, as
of any date of determination thereof, (a) for Prime-based Advances,
two percent (2%) per annum and (b) for Eurodollar-based Advances,
four and one quarter percent (4 ¼%) per annum.
‘Borrowing Base’ shall mean as of
any date of determination, the sum of (a) eighty five percent (85%)
of Eligible Accounts, plus (b) the lesser of (i) fifty percent
(50%) (subject to Bank approval in its sole and absolute
discretion, but in no case less than forty percent (40%)) of
Eligible Inventory and (ii) $5,000,000, plus (c) the lesser
of (i) fifty five percent (55%) of the orderly liquidation value of
Company’s eligible machinery and equipment (as determined
from time to time based on appraisals of such machinery and
equipment from an appraiser acceptable to Bank) plus the Collateral
L/C Amount and (ii) Six Million Dollars ($6,000,000); provided
however, that the Borrowing Base shall be determined on the basis
of the most current borrowing base certificate required to be
submitted hereunder, provided, further, that the amount determined
as the Borrowing Base shall be subject to any reserves for
contras/offsets, potential offsets due to customer deposits, and
such other reserves as reasonably established by Bank in the
exercise of its reasonable credit judgment from time to time,
including, without limitation any reserves or other adjustments
established by Bank, in each case in the exercise of its reasonable
credit judgment on the basis of any collateral audits conducted
hereunder. In the event that Bank, at any time in the exercise of
its reasonable credit judgment, determines that the dollar amount
of Eligible Accounts collectable by a Company is reduced or diluted
as a result of discounts or rebates granted by the applicable
Company to the respective Account Debtor(s), returned or rejected
Inventory or services, or such other reasons or factors as Bank
deems applicable in the exercise of its reasonable credit judgment,
Bank may, in the exercise of its reasonable credit judgment, upon
five (5) business days’ prior written notice to Companies,
reduce or otherwise modify the percentage of Eligible Accounts
included within the Borrowing Base and/or reduce the dollar amount
of Eligible Accounts by an amount determined by Bank in its
reasonable credit judgment.”
2. The
following definitions are added to Section 1 of the Agreement in
alphabetical order to read as follows:
“’Levy Credit Agreement’ shall
mean the Credit Agreement dated as of September 29, 2006 by and
among Edw. C. Levy Co., as borrower, the lenders party thereto and
Comerica Bank, as agent, as the same may be amended, modified or
amended and restated from time to time or any Credit Agreement
which replaces such Credit Agreement.
’Support Letters’ shall mean the
support letters dated as of August __, 2008 by the Support Parties
in favor of Bank, as the same may be amended or modified from time
to time.
‘Support Parties’ shall mean Edw. C.
Levy Co. and U.S. Concrete, Inc. and ‘Support Party’
shall mean each of them.”
‘U.S. Concrete Credit Agreement’
shall mean the Credit Agreement dated as of June 30, 2006 by and
among U.S. Concrete, Inc., as borrower, the lenders party thereto
and Citicorp North America, Inc., as administrative agent, as the
same may be amended, modified or amended and restated from time to
time or any Credit Agreement which replaces such Credit
Agreement.”
3. Sections 2.1
and 2.6 of the Agreement are amended to change each reference to
“Twenty Million Dollars ($20,000,000)” to read
“Seventeen Million Five Hundred Thousand Dollars
($17,500,000)”.
4. Section 4.8
of the Agreement is amended to read as follows:
5. Sections
7.11, 7.12 and 7.13 of the Agreement are amended to read as
follows:
7.13 Maintain as of the end of each fiscal quarter
specified below, EBITDA of not less than the amount specified
below:
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Fiscal
Quarter Ending
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September 30,
2008
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December 31,
2008
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March 31,
2009
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June 30,
2009
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September 30,
2009
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December 31,
2009
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March 31, 2010
and thereafter
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6. Schedule 1.1
to the Agreement is deleted.
7. Sections
10.2 (f) and (l) and Section 10.3 are amended to read as
follows:
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default in the
observance or performance of any of the conditions, covenants or
agreements of Companies or any other Person set forth in any
collateral document which may be given to secure or support the
indebtedness hereunder or in any other collateral document related
to or connected with this Agreement or the indebtedness hereunder
and continuance for ten (10) days;
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if any of the
Guaranties is revoked or any Support Letter is revoked;
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10.3 If a creditors’ committee shall have been
appointed for the business of any Company, any Subsidiary or any
Guarantor in connection with any bankruptcy or
insolvency;
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