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Execution Copy
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INCREMENTAL TRANCHE
A ASSUMPTION |
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AGREEMENT dated as of July 1, 2008 (this “
Agreement ”) among
FLAG INTERMEDIATE HOLDINGS CORPORATION,
a
Delaware corporation (“
Holdings ”), METALS USA, INC., a
Delaware corporation (“
Parent ”), certain subsidiaries of Parent
listed on Annex I hereto (together with Parent,
the “ Borrowers ”),
the lenders executing this Agreement as
Incremental Tranche A
Lenders (the “ Incremental Tranche A Lenders ”), CREDIT
SUISSE as administrative agent (in such
capacity, the
“ Administrative Agent ”) for the Lenders (as defined in the
Credit
Agreement referred to below), and BANK OF
AMERICA, N.A. as
collateral agent (in such capacity, the
“ Collateral
Agent ”) for the
Lenders. |
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A. Reference is made to the Loan and Security Agreement
dated as of November 30, 2005, as amended by Amendment No. 1 dated
as of July 18, 2006 and Amendment No. 2 dated as of June 8, 2007
(as so amended, the “ Credit
Agreement ”), among
Holdings, the Borrowers, the Lenders party thereto, the
Administrative Agent and the Collateral Agent.
B. Pursuant to Section 2.5 of the Credit Agreement, Parent
has requested that the Incremental Tranche A Lenders provide the
Borrowers with Incremental Tranche A Commitments in an aggregate
amount of $100,000,000.
C. The Incremental Tranche A Lenders are willing to provide
the Borrowers with such Incremental Tranche A Commitments on the
Effective Date (as defined below), on the terms and subject to the
conditions set forth herein and in the Credit Agreement, and each
Incremental Tranche A Lender that is not already a Lender under the
Credit Agreement on the date hereof (each such Lender, a
“ New Incremental Tranche A
Lender ”) has agreed to
become a party to the Credit Agreement and to assume the rights and
obligations of a Lender thereunder.
D. Capitalized terms used but not defined herein shall have
the meanings assigned to them in the Credit Agreement.
Accordingly, in consideration of the mutual agreements
herein contained and other good and valuable consideration, the
sufficiency and receipt of which are hereby acknowledged, the
parties hereto agree as follows:
SECTION 1. Incremental
Tranche A Commitments . (a) Each
Incremental Tranche A Lender that is a Tranche A Lender immediately
prior to the Effective Date hereby agrees, effective as of the
Effective Date, that such Incremental Tranche A Lender’s
Tranche A Commitment immediately prior to the Effective Date shall
be increased by the amount set forth next to such Incremental
Tranche A Lender’s name on Schedule I hereto.
(b) Each New Incremental Tranche A Lender hereby agrees,
effective as of the Effective Date, (i) to become a party to the
Credit Agreement with the result that such New Incremental Tranche
A Lender shall have the rights and obligations of a Lender
thereunder and (ii) that such New Incremental Tranche A
Lender’s Tranche A Commitment shall be the amount set forth
next to such New Incremental Tranche A Lender’s name on
Schedule I hereto.
(c) All such Incremental Tranche A Commitments shall
constitute “Tranche A Commitments” and all Incremental
Tranche A Lenders shall constitute “Lenders” and
“Tranche A Lenders”, in each case for all purposes of
the Credit Agreement and the other Loan Documents.
(d) Each of the parties hereto hereby agrees that the
Administrative Agent may, in consultation with Parent, take any and
all actions as may be reasonably necessary to ensure that the
outstanding Tranche A Revolving Loans (if any) are held by the
Tranche A Lenders in accordance with their respective Tranche A Pro
Rata Shares after giving effect to the effectiveness of this
Agreement. This may be accomplished by requiring each outstanding
LIBOR Rate Tranche A Revolving Loan to be converted into or prepaid
with the proceeds of Base Rate Tranche A Revolving Loans, subject
to Section 5.4 of the Credit Agreement, but otherwise without
premium or penalty.
SECTION 2.
Conditions Precedent to Incremental
Tranche A Commitments.
The obligations of the
Incremental Tranche A Lenders to provide Incremental Tranche A
Commitments on the Effective Date shall be subject to the
satisfaction or waiver of the following conditions
precedent:
(a) On the Effective Date, each of the conditions set forth
in Section 10.2 of the Credit Agreement shall be satisfied and the
Administrative Agent shall have received a certificate to that
effect dated as of the Effective Date and signed by a Responsible
Officer of each Borrower.
(b) The Administrative Agent shall have received such legal
opinions, board resolutions and other closing certificates and
documentation as shall be reasonably requested by the
Administrative Agent, in each case consistent with those delivered
on the Closing Date under Section 10.1 of the Credit
Agreement.
(c) All fees and expenses due and payable to the
Administrative Agent or any Incremental Tranche A Lender on or
prior to the Effective Date, including, to the extent invoiced,
reimbursement or payment of all out-of-pocket expenses required to
be reimbursed or paid by the Borrowers hereunder or under any other
Loan Document shall have been paid.
SECTION 3. Representations
and Warranties; Agreements of Incremental Tranche A
Lenders .
(a) To induce the other parties hereto to enter
into this Agreement, Holdings and each Borrower represents and
warrants to each of the Incremental Tranche A Lenders, the
Administrative Agent and the Collateral Agent that, after giving
effect to this Agreement, (i) the representations and warranties
set forth in Article 8 of the Credit
Agreement are true and correct
in all material respects on and as of the date hereof, except to
the extent such representations and warranties expressly relate to
an earlier date; and (ii) no Default or Event of Default has
occurred and is continuing.
(b) Each Incremental Tranche A Lender that is a Tranche A
Lender under the Credit Agreement immediately prior to the
Effective Date represents and warrants that it has the full power
and authority, and has taken all actions necessary, to execute and
deliver this Agreement. Each New Incremental Tranche A Lender (i)
represents and warrants that it has full power and authority, and
has taken all action necessary, to execute and deliver this
Agreement and to become a Lender under th
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