THIRD AMENDMENT TO AMENDED
AND RESTATED NOTE AND WARRANT PURCHASE AGREEMENT
This Third
Amendment to Amended and Restated Note and Warrant Purchase
Agreement (herein, this “ Amendment ”) is made
as of May 12, 2006, by and among Harris Nesbitt Capital, Inc.,
a Delaware corporation (“ HNC ” or, in its
capacity as agent, the “ Agent ”), and Prism
Mezzanine Fund SBIC, L.P., a Delaware limited partnership (“
Prism ” and, together with HNC, the “
Majority Purchasers ”), Morton Industrial Group, Inc.,
a Georgia corporation (the “ Company ”), and
each of the Subsidiaries of the Company executing a signature page
hereto, as a Guarantor.
A. The Agent,
the Majority Purchasers and the other Purchasers extended credit to
the Company on the terms and conditions set forth in that certain
Amended and Restated Note and Warrant Purchase Agreement dated as
of June 23, 2004 (as thereafter amended, restated,
supplemented or otherwise modified from time to time, the “
Purchase Agreement ”). All capitalized terms used
herein without definition shall have the same meanings herein as
such terms have in the Purchase Agreement.
B. The
Company has requested that the Agent and the requisite Purchasers
agree to amend (i) the Fixed Charge Coverage Ratio for the fiscal
quarters ending March 31, 2006, and June 30, 2006, and
(ii) the Capital Expenditures limitation, and the Agent and
the Majority Purchasers are willing to do so on the terms and
conditions set forth in this Amendment.
NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as
follows:
SECTION 1
Amendments . Subject to the satisfaction of the conditions
precedent set forth in Section 2 below, the Purchase Agreement
shall be and hereby is amended as follows:
1.1
Section 8.9 of the Purchase Agreement (Fixed Charge Coverage
Ratio) is hereby amended and restated to read in its entirety as
follows:
Section 8.9
Fixed Charge Coverage Ratio . The Company will not, as of
the last day of each fiscal quarter of the Company ending on the
dates set forth below, permit the Fixed Charge Coverage Ratio to be
less than:
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Fixed Charge
Coverage
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Fiscal Quarter
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Ratio Shall Not Be
Less
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Ending Dates
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Than
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0.85 to 1.0
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0.90 to 1.0
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09/30/06 and each fiscal quarter
ending thereafter
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1.0 to 1.0
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1.2
Section 8.10 of the Purchase Agreement (Capital Expenditures)
is hereby amended and restated to read in its entirety as
follows:
Section 8.10
Capital Expenditures . The Company shall not, nor shall it
permit any Subsidiary to, expend or (without duplication) become
obligated to expend, in each case for Capital Expenditures
aggregating for the Company and its Subsidiaries (taken together)
in excess of (a) $9,900,000 in the aggregate for the four
(4) fiscal quarters ending June 30, 2006, (b) $9,350,000
in the aggregate for the four (4) fiscal quarters ending
September 30, 2006, (c) $7,700,000 in the aggregate for the
four (4) fiscal quarters ending December 31, 2006, and
(d) $7,700,000 in the aggregate for the fiscal year ending
December 31, 2007, and a like amount in each fiscal year
ending thereafter).
SECTION 2
Conditions Precedent . The effectiveness of this Amendment
is subject to the satisfaction of all of the following conditions
precedent:
2.1
The Company, the Agent, the Majority Purchasers, and the Guarantors
shall have executed and delivered this Amendment.
2.2
The Agent shall have received (a) a copy of an executed
amendment to the Senior Credit Agreement and (b) an executed
counterpart of the Second Amendment to Subordination and
Intercreditor Agreement, each in form and substance acceptable to
the Agent.
2.3
The Company shall have paid to the Agent an amendment fee of
$50,000 for the ratable benefit of the Purchasers.
2.4
Legal matters incident to the execution and delivery of this
Amendment shall be satisfactory to the Agent and its
counsel.
Page 2
SECTION 3
Conditions Subsequent . The Compa
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