SECOND
AMENDMENT
TO SECOND AMENDED AND
RESTATED CREDIT AGREEMENT AND WAIVER
Dated as of September 30,
2008
among
BUILDING MATERIALS HOLDING
CORPORATION,
BMC WEST
CORPORATION
AND OTHER SUBSIDIARY
GUARANTORS,
WELLS FARGO BANK, NATIONAL
ASSOCIATION,
as Administrative Agent,
Joint Lead Arranger, Joint Book Manager, Swingline Lender
and
L/C
Issuer,
JPMORGAN CHASE BANK,
N.A.,
as Documentation
Agent
and
THE OTHER FINANCIAL
INSTITUTIONS PARTY HERETO
J.P. MORGAN SECURITIES
INC.,
Joint Lead Arranger and
Joint Book Manager
SECOND
AMENDMENT
TO SECOND AMENDED AND
RESTATED CREDIT AGREEMENT AND WAIVER
This SECOND AMENDMENT TO SECOND AMENDED AND
RESTATED CREDIT AGREEMENT AND WAIVER (this “ Amendment
”) dated as of September 30, 2008, by and among (i) BUILDING
MATERIALS HOLDING CORPORATION, a Delaware corporation (“
Holdings ”), as borrower, (ii) BMC WEST CORPORATION, a
Delaware corporation (the “ Company ”), and
certain other affiliates of Holdings, as guarantors, (iii) the
Lenders party to the Credit Agreement referenced below, (iv)
JPMORGAN CHASE BANK, N.A., as Documentation Agent, and (v) WELLS
FARGO BANK, NATIONAL ASSOCIATION (“ Wells Fargo
”), as L/C Issuer, Swingline Lender, Joint Lead Arranger,
Joint Book Manager and Administrative Agent.
A. WHEREAS, Holdings, the Company and the other
Guarantors, the Lenders and the Administrative Agent are parties to
a Second Amended and Restated Credit Agreement, dated as of
November 10, 2006, as amended by a First Amendment to Second
Amended and Restated Credit Agreement and Waiver, dated as of
February 29, 2008 (as so amended, the “ Credit
Agreement ”).
B. WHEREAS, by written notice dated July 29,
2008 (the “ Notice Letter ”), Holdings notified
the Administrative Agent of certain Defaults under the Credit
Agreement as more specifically described in such Notice Letter
(such Defaults specified in the Notice Letter, the “
Specified Defaults ”).
C. WHEREAS, in light of the Specified Defaults,
Holdings has requested that the Majority Lenders agree to certain
amendments to the Credit Agreement.
D. WHEREAS, the Majority Lenders have agreed to
such request, subject to the terms and conditions
hereof.
Accordingly, the parties hereto agree as
follows:
SECTION 1. Definitions; Interpretation
.
(a) Terms Defined in Credit Agreement .
All capitalized terms used in this Amendment (including in the
preamble and recitals hereof) and not otherwise defined herein
shall have the meanings assigned to them in the Credit
Agreement.
(b) Interpretation . The rules of
interpretation set forth in Section 1.02 of the Credit
Agreement shall be applicable to this Amendment and are
incorporated herein by this reference.
SECTION 2. Amendments to the Credit
Agreement; Waiver of Specified Defaults .
(a) Amendments . The Credit Agreement
shall be amended as follows, effective as of the date of
satisfaction of the conditions set forth in Section 3 of
this Amendment:
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(i)
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Section 1.01 of
the Credit Agreement (captioned “ Certain Defined
Terms ”) shall be amended as follows:
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(A)
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The defined
term “ Account ” shall be amended and restated
in its entirety as follows:
““
Account ” means an account (as that term is defined in
the UCC).”
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(B)
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A new defined
term “ Account Debtor ” shall be inserted in
alphabetical order as follows:
““
Account Debtor ” means any Person who is obligated on
an Account.”
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(C)
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The defined
term “ Applicable Fee Amount ” shall be amended
and restated in its entirety as follows:
““
Applicable Fee Amount ” means, with respect to the
Commitment Fees, 0.50%, and, with respect to the Standby Letter of
Credit fees payable hereunder, 5.25%.”
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(D)
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The defined
term “ Applicable Margin ” shall be amended and
restated in its entirety as follows:
““
Applicable Margin ” means, with respect to Base Rate
Loans, 3.25%, and, with respect to Offshore Rate Loans,
5.25%.”
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(A) A new
defined term “Appraised Value of Real Estate
Collateral” shall be inserted in alphabetical order as
follows:
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(E)
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““
Appraised Value of Real Estate Collateral ” means the
appraised Dollar value of the Mortgaged Property that is subject to
a valid and perfected first priority Lien in favor of the
Administrative Agent (subject only to Permitted Liens), such Dollar
value to be as determined from time to time by an appraisal company
selected by the Administrative Agent. As of the Second Amendment
Effective Date, the most recent Appraised Value of Real Estate
Collateral is $218,908,002, as reflected on the schedule attached
to the Borrowing Base Certificate delivered on the Second Amendment
Effective Date.”
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(F)
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A new defined
term “ BMCI ” shall be inserted in alphabetical
order as follows:
““
BMCI ” means BMC Insurance, Inc., a Hawaii
corporation.”
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(G)
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A new defined
term “ BMCI Liquidation ” shall be inserted in
alphabetical order as follows:
““
BMCI Liquidation ” means (i) the liquidation of BMCI,
(ii) the distribution or other transfer of all cash, cash
equivalents and other securities held by BMCI to Holdings, (iii)
the conversion of all such cash equivalents and other securities to
cash through the orderly disposition thereof and (iv) the wind down
and cessation of operations of BMCI.”
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(H)
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The defined
term “ Borrowing Base ” shall be amended and
restated in its entirety as follows:
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““
Borrowing Base ” means, as of any date of
determination, the result of:
a. 70% of the (A) amount of Eligible Accounts
less the (B) Warranty Reserve less (C) the Gift
Certificate Reserve, plus
b. 50% of (A) the value of Eligible Inventory
(other than Truss and Millwork Inventory) less (B) the
Inventory Vendor Discount Reserve less (C) the Inventory
Volume Rebate Reserve, plus
c. 25% of (A) the value of Eligible Truss and
Millwork Inventory less (B) the Truss and Millwork Vendor
Discount Reserve less (C) the Truss and Millwork Volume
Rebate Reserve, plus
d. 75% of the Fixed Assets Orderly Liquidation
Value (or 60% of net book value of Eligible Fixed Assets (which as
of the Second Amendment Effective Date is $_________)), prior to
receipt by Administrative Agent of the first appraisal determining
the Fixed Assets Orderly Liquidation Value), plus
e. 50% of the Appraised Value of Real Estate
Collateral, minus
f. the Rent Reserve plus the aggregate
amount of other reserves, if any, established by the Administrative
Agent in the exercise of its Permitted
Discretion.”
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(I)
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A new defined
term “ Cash Balance ” shall be inserted in
alphabetical order as follows:
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““
Cash Balance ” means, at any time, the aggregate
Dollar amount of all cash and cash equivalents of Holdings and its
Subsidiaries held in deposit accounts, securities accounts or
otherwise, as determined in accordance with GAAP, but including,
without limitation, any cash or cash equivalents held in a Cash
Collateral Account without regard to how the account balance is
accounted for on Holdings’ financial
statements.”
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(J)
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A new defined
term “ Cash Collateral Account ” shall be
inserted in alphabetical order as follows:
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““
Cash Collateral Account ” means that certain
securities account with account number _____ held at _____ (or such
other interest-bearing deposit accounts held at Wells Fargo Bank,
N.A. or its Affiliates satisfactory to the Administrative Agent) in
the name of the Administrative Agent, for itself and on behalf of
and for the benefit of the Lenders, in which cash shall from time
to time be deposited pursuant to the Loan Documents as additional
collateral for the Obligations.”
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(K)
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The defined
term “ Cash Collateralize ” shall be amended and
restated in its entirety as follows:
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““
Cash Collateralize ” means to pledge and deposit with
or deliver to the Administrative Agent, for the benefit of the
Administrative Agent, the L/C Issuer and the applicable Lenders, as
additional collateral for the L/C Obligations or the Obligations,
as the case may be, pursuant to the Loan Documents, cash or deposit
account balances. Derivatives of such term shall have corresponding
meaning.
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(L)
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A new defined
term “ Collateral Access Agreement ” shall be
inserted in alphabetical order as follows:
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““
Collateral Access Agreement ” means a landlord waiver,
bailee letter, or acknowledgement agreement of any lessor,
warehouseman, processor, consignee, or other Person in possession
of, having a Lien upon, or having rights or interests in
Holdings’ or its Subsidiaries’ books and records,
Inventory or equipment, in each case, in form and substance
reasonably satisfactory to Administrative Agent.”
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(M)
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A new defined
term “ Collected and Available Cash ” shall be
inserted in alphabetical order as follows:
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““
Collected and Available Cash ” means, at any time, the
aggregate Dollar amount of all cash and cash equivalents
constituting good and available funds of Holdings and its
Subsidiaries, deposited into deposit accounts and concentrated into
concentration accounts of Holdings and its
Subsidiaries.”
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(N)
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The defined
term “ Commercial Letter of Credit ” shall be
amended by deleting the text “ordinary course of
business” and replacing it with the text “Ordinary
Course of Business”.
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(O)
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The defined
terms “ Consolidated Net Income ”, “
Consolidated Net Worth ”, and “ Consolidated
Total Assets ” shall be deleted.
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(P)
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A new defined
term “ Costs of Goods Sold From Continuing Operations
” shall be inserted in alphabetical order as
follows:
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““
Costs of Goods Sold From Continuing Operations ”
means, for any period, costs of goods sold of Holdings and its
Subsidiaries for such period determined on a consolidated basis in
accordance with GAAP, but exclusive of costs of goods sold of the
Wind-Down Business Units.”
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(Q)
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A new defined
term “ Costs of Goods Sold From Wind-Down Business
Units ” shall be inserted in alphabetical order as
follows:
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““
Costs of Goods Sold From Wind-Down Business Units ”
means, for any period, costs of goods sold of the Wind-Down
Business Units for such period determined in accordance with
GAAP.”
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(R)
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The defined
term “ Disposition ” shall be amended by adding
an additional sentence at the end of the definition thereof as
follows:
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““For purposes of Section
2.08(a)(iii) , a Disposition shall not include the sale, lease,
conveyance or other disposition of property (other than real estate
and other fixed assets) of the Wind-Down Business
Units.”
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(S)
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The defined
term “ EBITDA ” shall be amended and restated in
its entirety as follows:
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““
EBITDA From Continuing Operations ” means, for any
period, the sum of Gross Profit From Continuing Operations for such
period minus Selling, General and Administrative Expenses
From Continuing Operations for such period plus (to the extent
deducted in determining Gross Profit From Continuing Operations
pursuant to clause (b) of the definition thereof or to the extent
included in Selling, General and Administrative Expenses From
Continuing Operations, and without duplication) (i) depreciation
expense and amortization expense for such period, (ii)
restructuring, charges relating to the shutdown or relocation of
facilities and other like charges and professional fees and costs
attributable to the restructuring of Holdings’ consolidated
operations; provided , however , that such charges
shall not exceed $700,000 per month, (iii) other nonrecurring items
attributable to the restructuring of Holdings’ consolidated
operations as may from time to time be agreed to by the
Administrative Agent and the Documentation Agent in their
reasonable discretion, (iv) non-cash impairment charges of goodwill
and other intangibles, (v) non-cash share based compensation costs;
provided , however , that such costs shall not exceed
$750,000 per month, (vi) severance and early retirement costs
attributable to the restructuring of Holdings’ consolidated
operations; provided , however , that such costs
shall not exceed $500,000 per month; (vii) the write-off or
write-down of fixed assets attributable to the restructuring of
Holdings’ consolidated operations; (viii) the write-off or
write-down of operating leases attributable to the restructuring of
Holdings’ consolidated operations; and (ix) fees and costs of
attorneys and other professional advisors relating to the
negotiation and documentation of the Second Amendment; all
calculated for Holdings and its Subsidiaries on a consolidated
basis for such period in accordance with GAAP.”
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(T)
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A new defined
term “ EBITDA From Wind-Down Business Units ”
shall be inserted in alphabetical order as follows:
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““
EBITDA From Wind-Down Business Units ” means, for any
period, the sum of Gross Profit From Wind-Down Business Units for
such period minus Selling, General and Administrative
Expenses From Wind-Down Business Units for such period plus
(to the extent deducted in determining Gross Profit From Wind-Down
Business Units pursuant to clause (b) of the definition thereof or
to the extent included in Selling, General and Administrative
Expenses From Wind-Down Business Units, and without duplication)
(i) depreciation expense and amortization expense for such period,
(ii) non-cash impairment charges of goodwill and other intangibles,
(iii) the write-off or write down of fixed assets at “wind
down” locations; (iv) the write-off, write down or reserves
for bad debt of operating leases at “wind down”
locations; (v) the write-off or write down of receivables at
“wind down” locations; and the (vi) the write-off or
write down of inventory at “wind down” locations; all
calculated for the Wind-Down Business Units for such period in
accordance with GAAP.”
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(U)
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A new defined
term “ Eligible Accounts ” shall be inserted in
alphabetical order as follows:
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““
Eligible Accounts ” means those Accounts created by
Holdings or any Guarantor in the ordinary course of its business,
that arise out of such Person’s sale of goods or rendition of
services, that comply with each of the representations and
warranties respecting Eligible Accounts made in the Loan Documents,
and that are not excluded as ineligible by virtue of one or more of
the excluding criteria set forth below; provided ,
however , that such criteria may be revised from time to
time by Administrative Agent in Administrative Agent’s
Permitted Discretion to address the results of any audit performed
by Administrative Agent from time to time after the Second
Amendment Effective Date. Eligible Accounts shall not include the
following (unless the Administrative Agent has imposed a reserve in
the respect of the relevant Accounts), without
duplication:
a. Accounts that the Account Debtor has failed
to pay within 60 days of original due date or Accounts with selling
terms of more than 30 days,
b. Accounts owed by an Account Debtor (or its
Affiliates) where 20% or more of all Accounts owed by that Account
Debtor (or its Affiliates) are deemed ineligible under clause (a)
above,
c. Accounts with respect to which the Account
Debtor is owed a credit by Holdings or any Guarantor, to the extent
of such credit,
d. Accounts consisting of late fees or similar
finance charges with respect to Accounts deemed ineligible under
clause (a) above,
e. Accounts subject to a contra account or with
respect to which the Account Debtor is otherwise a creditor of
Holdings or any Guarantor, has or has asserted a right of setoff,
or has disputed its obligation to pay all or any portion of the
Account, to the extent of such contra account, claim, right of
setoff, or dispute,
f. Accounts with respect to which the Account
Debtor is subject to an Insolvency Proceeding, is not Solvent, has
gone out of business, or as to which Holdings or any Guarantor has
received notice of an imminent Insolvency Proceeding or a material
impairment of the financial condition of such Account
Debtor,
g. Accounts with respect to which the Account
Debtor has made a deposit or other advance payment, to the extent
of such deposit or advance payment,
h. Accounts with respect to which the Account
Debtor is owed premiums by Holdings or any Guarantor for WRAP
insurance, to the extent of such premiums,
i. Accounts arising from services subject to a
performance bond or other Surety Instrument,
j. Accounts with respect to which the Account
Debtor is an Affiliate of Holdings or an employee or agent of
Holdings or any Affiliate of Holdings,
k. Accounts with cash-on-delivery,
cash-in-advance or similar selling terms,
l. Accounts with respect to which the Account
Debtor is a school, school district or other similar
payor,
m. Accounts with respect to which the Account
Debtor is either (i) the United States or any department, agency,
or instrumentality of the United States (exclusive, however, of
Accounts with respect to which Holdings has complied, to the
reasonable satisfaction of Administrative Agent, with the
Assignment of Claims Act, 31 USC §3727), or (ii) any state of
the United States,
n. Accounts with respect to which the Account
Debtor has earned an allowance or rebate, to the extent of such
allowance or rebate,
o. Accounts evidenced by a promissory note or
other instrument,
p. Accounts evidencing billings in excess of
costs, to the extent of such excess,
q. Accounts
arising in a transaction wherein goods are placed on consignment or
are sold pursuant to a guaranteed sale, a sale or return, a sale on
approval, a bill and hold, or any other terms by reason of which
the payment by the Account Debtor may be conditional,
r. Accounts that are not payable in
Dollars,
s. Accounts with respect to which the Account
Debtor either (i) does not maintain its chief executive office in
the United States, or (ii) is not organized under the laws of the
United States or any state thereof, or (iii) is the government of
any foreign country or sovereign state, or of any state, province,
municipality, or other political subdivision thereof, or of any
department, agency, public corporation, or other instrumentality
thereof, unless (y) the Account is supported by an irrevocable
letter of credit reasonably satisfactory to Administrative Agent
(as to form, substance, and issuer or domestic confirming bank)
that has been delivered to Administrative Agent and is directly
drawable by Administrative Agent, or (z) the Account is covered by
credit insurance in form, substance, and amount, and by an insurer,
reasonably satisfactory to Administrative Agent,
t. Accounts with respect to an Account Debtor
whose total obligations owing to Holdings and the Guarantors exceed
20% (such percentage, as applied to a particular Account Debtor,
being subject to reduction by Administrative Agent in its Permitted
Discretion if the creditworthiness of such Account Debtor
deteriorates) of all Eligible Accounts, to the extent of the
obligations owing by such Account Debtor in excess of such
percentage; provided , however , that, in each case,
the amount of Eligible Accounts that are excluded because they
exceed the foregoing percentage shall be determined by
Administrative Agent based on all of the otherwise Eligible
Accounts prior to giving effect to any eliminations based upon the
foregoing concentration limit,
u. Accounts, the collection of which
Administrative Agent, in its Permitted Discretion, believes to be
doubtful by reason of the Account Debtor’s financial
condition,
v. Accounts that are not subject to a valid and
perfected first priority Lien in favor of the Administrative
Agent,
w. Accounts with respect to which (i) the goods
giving rise to such Account have not been shipped and billed to the
Account Debtor, or (ii) the services giving rise to such Account
have not been performed and billed to the Account
Debtor,
x. Accounts with respect to which the Account
Debtor is a Sanctioned Person or Sanctioned
Entity”
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(V)
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A new defined
term “ Eligible Fixed Assets ” shall be inserted
in alphabetical order as follows:
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““
Eligible Fixed Assets ” means the fixed assets (other
than real estate) of Holdings and the Guarantors that comply with
each of the representations and warranties respecting Eligible
Fixed Assets made in the Loan Documents and that are not excluded
as ineligible by virtue of one or more of the excluding criteria
set forth below; provided , however , that such
criteria may be revised from time to time by Administrative Agent
in Administrative Agent’s Permitted Discretion to address the
results of any audit or appraisal performed by Administrative Agent
from time to time after the Second Amendment Effective Date. An
item of fixed assets shall not be included in Eligible Fixed Assets
(unless the Administrative Agent has imposed a reserve in the
respect of the relevant fixed assets), without duplication,
if:
a. Holdings or any Guarantor does not have good,
valid, and marketable title thereto,
b. it is not located at one of the locations in
the continental United States set forth on Schedule 1.01A, as such
Schedule may be amended from time to time (or in-transit from one
such location to another such location),
c. it is located on real property leased by
Holdings or any Guarantor or in a contract warehouse, in each case,
unless either (1) it is subject to a Collateral Access Agreement
executed by the lessor or warehouseman, as the case may be, and
unless it is segregated or otherwise separately identifiable from
goods of others, if any, stored on the premises, or (2) a Rent
Reserve has been imposed in respect of the Fixed Assets located at
such location,
d. it is not subject to a valid and perfected
first priority Lien in favor of the Administrative
Agent.
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(W)
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A new defined
term “ Eligible Inventory ” shall be inserted in
alphabetical order as follows:
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““
Eligible Inventory ” means Inventory consisting of
first quality finished goods held for sale in the ordinary course
of Holdings’ or any Guarantor’s business, that complies
with each of the representations and warranties respecting Eligible
Inventory made in the Loan Documents, and that is not excluded as
ineligible by virtue of one or more of the excluding criteria set
forth below; provided , however , that such criteria
may be revised from time to time by Administrative Agent in
Administrative Agent’s Permitted Discretion to address the
results of any audit or appraisal performed by Administrative Agent
from time to time after the Second Amendment Effective Date. In
determining the amount to be so included, Inventory shall be valued
at the lower of cost or market on a basis consistent with
Holdings’ historical accounting practices. An item of
Inventory shall not be included in Eligible Inventory if (unless
the Administrative Agent has imposed a reserve in the respect of
the relevant Inventory), without duplication:
a. Holdings or any Guarantor does not have good,
valid, and marketable title thereto,
b. it is not located at one of the locations in
the continental United States set forth on Schedule 1.01A, as such
Schedule may be amended from time to time (or in-transit from one
such location to another such location),
c. it is located on real property leased by
Holdings or any Guarantor or in a contract warehouse, in each case,
unless (1) it is subject to a Collateral Access Agreement executed
by the lessor or warehouseman, as the case may be, and unless it is
segregated or otherwise separately identifiable from goods of
others, if any, stored on the premises, or (2) a Rent Reserve has
been imposed in respect of the Inventory located at such
location,
d. it is not subject to a valid and perfected
first priority Lien in favor of the Administrative
Agent,
e. it consists of goods returned or rejected by
Holdings’ or any Guarantor’s customers,
f. it consists of goods that are obsolete or
slow moving, restrictive or custom items, work-in-process (other
than Truss and Millwork Inventory), raw materials, or goods that
constitute spare parts, packaging and shipping materials, supplies
used or consumed in Holdings’ or any Guarantor’s
business, bill and hold goods, defective goods,
“seconds,” or Inventory acquired on
consignment,
g. it consists of non-perpetual
Inventory,
h. it consists of special order Inventory,
or
i. it consists of racks and pallets
Inventory.
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(X)
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A new defined
term “ Eligible Truss and Millwork Inventory ”
shall be inserted in alphabetical order as follows:
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““
Eligible Truss and Millwork Inventory ” means Eligible
Inventory consisting of Truss and Millwork
Inventory.”
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(Y)
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A new defined
term “ Excess Cash Flow ” shall be inserted in
alphabetical order as follows:
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““
Excess Cash Flow ” means, for any period, (i) EBITDA
From Continuing Operations for such period minus (ii) the
sum of (A) Capital Expenditures for such period to the extent
permitted under Section 8.21 , (B) taxes paid in cash during
such period and (C) payments of principal and interest paid in cash
during such period in respect of Indebtedness permitted under
Section 8.05 , in each case, for Holdings and its
Subsidiaries on a consolidated basis in accordance with
GAAP.”
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(Z)
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A new defined
term “ Fixed Assets Orderly Liquidation Value ”
shall be inserted in alphabetical order as follows:
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““
Fixed Assets Orderly Liquidation Value ” means the
Dollar amount that is estimated to be recoverable in an orderly
liquidation of the Eligible Fixed Assets net of all associated
costs and expenses of such liquidation, such Dollar amount to be as
determined from time to time by an appraisal company selected by
the Administrative Agent.”
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(AA)
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A new defined
term “ Gift Certificate Reserve ” shall be
inserted in alphabetical order as follows:
““
Gift Certificate Reserve ” means, as of any date of
determination, a Dollar amount equal to Holdings’ and its
Subsidiaries’ accrued liabilities for outstanding gift
certificates as of such date.”
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(BB)
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A new defined
term “ Gross Profit From Continuing Operations ”
shall be inserted in alphabetical order as follows:
““
Gross Profit From Continuing Operations ” means, for
any period, (a) Total Sales From Continuing Operations for such
period minus (b) Costs of Goods Sold From Continuing
Operations for such period.”
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(CC)
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A new defined
term “ Gross Profit From Wind-Down Business Units
” shall be inserted in alphabetical order as
follows:
““
Gross Profit From Wind-Down Business Units ” means,
for any period, (a) Total Sales From Wind-Down Business Units for
such period minus (b) Costs of Goods Sold From Wind-Down
Business Units for such period.”
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(DD)
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The defined
term “ Indebtedness ” shall be amended by
deleting the text “ordinary course of business” and
replacing it with the text “Ordinary Course of
Business”.
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(EE)
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A new defined
term “ Interest Coverage Ratio ” shall be
inserted in alphabetical order as follows:
““
Interest Coverage Ratio ” means, as of the last day of
any fiscal quarter, the ratio of (i) EBITDA From Continuing
Operations to (ii) Interest Expense paid in cash, in each case, for
the period of four fiscal quarters ended on such
date.”
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(FF)
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A new defined
term “ Inventory ” shall be inserted in
alphabetical order as follows:
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““
Inventory ” means inventory (as that term is defined
in the UCC).”
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(GG)
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A new defined
term “ Inventory Vendor Discount Reserve ” shall
be inserted in alphabetical order as follows:
““
Inventory Vendor Discount Reserve ” means, as of any
date of determination, (i) 100% minus the Truss and Millwork
Inventory Percentage multiplied by (ii) the amount of
reserves that Holdings has recorded in its books as of such date,
in accordance with GAAP, in respect of vendor discounts earned on
Holdings’ and its Subsidiaries’
Inventory.”
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(HH)
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A new defined
term “ Inventory Volume Rebate Reserve ” shall
be inserted in alphabetical order as follows:
““
Inventory Volume Rebate Reserve ” means, as of any
date of determination, (i) 100% minus the Truss and Millwork
Inventory Percentage multiplied by (ii) the amount of
reserves that Holdings has recorded in its books as of such date,
in accordance with GAAP, in respect of rebates earned by vendors
relating to volume purchases of Holdings’ and its
Subsidiaries’ Inventory.”
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(II)
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A new defined
term “ L/C Cash Collateral Account ” shall be
inserted in alphabetical order as follows:
““
L/C Cash Collateral Account ” means one or more
non-interest bearing deposit accounts held at Wells Fargo Bank,
N.A. in the name of the Administrative Agent, for itself and on
behalf of and for the benefit of the L/C Issuer and the Revolving
Lenders, in which cash shall from time to time be deposited
pursuant to the Loan Documents as additional collateral for the L/C
Obligations.
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(JJ)
|
A new defined
term “ Leverage Ratio ” shall be inserted in
alphabetical order as follows:
|
““
Leverage Ratio ” means, as of the last day of any
fiscal quarter, the ratio of (i) Total Funded Debt on such date to
(ii) EBITDA From Continuing Operations for the period of four
fiscal quarters ended on such date.”
|
|
(KK)
|
A new defined
term “ Liquidity ” shall be inserted in
alphabetical order as
follows:
|
““
Liquidity ” means, at any time, a Dollar amount equal
to (i)(A) the Borrowing Base then in effect plus (B) (to the
extent a positive number) (1) the Cash Balance at such time
minus (2) $15,000,000, minus (ii) the Effective
Amount of all Revolving Loans, Swingline Loans and L/C Obligations
at such time.”
|
|
(LL)
|
A new defined
term “ OFAC ” shall be inserted in alphabetical
order as follows:
|
““
OFAC ” means The Office of Foreign Assets Control of
the U.S. Department of the Treasury.”
|
|
(MM)
|
A new defined
term “ Ordinary Course of Business ” shall be
inserted in alphabetical order as follows:
|
““
Ordinary Course of Business ” means, in respect of any
transaction involving a Loan Party, the ordinary course of such
Loan Party’s business, and undertaken by such Loan Party in
good faith and not for purposes of evading any covenant or
restriction in any Loan Document.”
|
|
(NN)
|
A new defined
term “ Permitted Discretion ” shall be inserted
in alphabetical order as follows:
|
““
Permitted Discretion ” means a determination made in
the exercise of reasonable (from the perspective of a secured
lender) business judgment.”
|
|
(OO)
|
The defined
term “ Permitted Swap Obligations ” shall be
amended by (A) inserting the word “Specified” before
the phrase “Swap Contracts”, and (B) deleting the text
“ordinary course of business” and replacing it with the
text “Ordinary Course of Business.”
|
|
|
(PP)
|
A new defined
term “ PIK Interest ” shall be inserted in
alphabetical order as follows:
|
““
PIK Interest ” has the meaning specified in Section
2.10(a) .”
|
|
(QQ)
|
A new defined
term “ PIK Margin ” shall be inserted in
alphabetical order as follows:
|
““
PIK Margin ” means 2.75%.”
|
|
(RR)
|
A new defined
term “ Rent Reserve ” shall be inserted in
alphabetical order as follows:
““
Rent Reserve ” means, as of any date of determination
and without duplication for multiple classes of eligible assets
held at any particular location, a Dollar amount equal to (i) three
multiplied by (ii) the aggregate monthly rent payable by
Holdings and its Subsidiaries in respect of all real property
leased by Holdings and its Subsidiaries and all contract
warehouses, in each case, where Eligible Inventory or Eligible
Fixed Assets are located.”
|
|
|
(SS)
|
A new defined
term “ Sanctioned Entity ” shall be inserted in
alphabetical order as follows:
|
““
Sanctioned Entity ” means (a) a country or a
government of a country, (b) an agency of the government of a
country, (c) an organization directly or indirectly controlled by a
country or its government, (d) a Person resident in or determined
to be resident in a country, in each case, that is subject to a
country sanctions program administered and enforced by
OFAC.”
|
|
(TT)
|
A new defined
term “ Sanctioned Person ” shall be inserted in
alphabetical order as follows:
|
““
Sanctioned Person ” means a person named on the list
of Specially Designated Nationals maintained by
OFAC.”
|
|
(UU)
|
A new defined
term “ Solvent ” shall be inserted in
alphabetical order as follows:
|
““
Solvent ” means, with respect to any Person on a
particular date, that, at fair valuations, the sum of such
Person’s assets is greater than all of such Person’s
debts.”
|
|
(VV)
|
A new defined
term “ Second Amendment ” shall be inserted in
alphabetical order as follows:
|
““
Second Amendment ” shall mean the Second Amendment to
Second Amended and Restated Credit Agreement and Waiver dated as of
September __, 2008, among Holdings, the Guarantors, the Lenders and
the Administrative Agent.”
|
|
(WW)
|
A new defined
term “ Second Amendment Effective Date ” shall
be inserted in alphabetical order as follows:
|
““
Second Amendment Effective Date ” means the
“Effective Date” under and as defined in the Second
Amendment.”
|
|
(XX)
|
A new defined
term “ Selling, General and Administrative Expenses From
Continuing Operations ” shall be inserted in alphabetical
order as follows:
|
““
Selling, General and Administrative Expenses From Continuing
Operations” means, for any period, selling, general and
administrative expenses of Holdings and its Subsidiaries for such
period determined on a consolidated basis in accordance with GAAP,
but exclusive of selling, general and administrative expenses of
the Wind-Down Business Units.”
|
|
(YY)
|
A new defined
term “ Selling, General and Administrative Expenses From
Wind-Down Business Units ” shall be inserted in
alphabetical order as follows:
|
““
Selling, General and Administrative Expenses From Wind-Down
Business Units” means, for any period, selling, general and
administrative expenses of the Wind-Down Business Units for such
period determined in accordance with GAAP.”
|
|
(ZZ)
|
The defined
term “ Subsidiary ” shall be amended by
inserting the text “ 7.19 , ” immediately before
the text “ 8.03 ”.
|
|
|
(AAA)
|
The defined
term “ Surety Bond Reserve ” shall be
deleted.
|
|
|
(BBB)
|
A new defined
term “ Swap Provider ” shall be inserted in
alphabetical order as follows:
|
““
Swap Provider ” means any Person that at the time such
Person entered into a Specified Swap Contract with Holdings was a
Lender or any Affiliate of any Lender.
|
|
(CCC)
|
A new defined
term “ Total Funded Debt ” shall be inserted in
alphabetical order as follows:
|
““
Total Funded Debt ” means, as of any date of
determination, all (i) indebtedness for borrowed money as of such
date (excluding any capitalized interest), plus (ii)
obligations in respect of Capital Leases as of such date, in each
case, of Holdings and its Subsidiaries on a consolidated basis in
accordance with GAAP, including all Term B Loans, Revolving Loans,
Swingline Loans and L/C Obligations.”
|
|
(DDD)
|
A new defined
term “ Total Sales From Continuing Operations ”
shall be inserted in alphabetical order as follows:
|
““
Total Sales From Continuing Operations ” means, for
any period, total sales of Holdings and its Subsidiaries for such
period determined on a consolidated basis in accordance with GAAP,
but exclusive of total sales of the Wind-Down Business
Units.”
|
|
(EEE)
|
A new defined
term “ Total Sales From Wind-Down Business Units
” shall be inserted in alphabetical order as
follows:
|
““
Total Sales From Wind-Down Business Units ” means, for
any period, total sales of the Wind-Down Business Units for such
period determined in accordance with GAAP.”
|
|
(FFF)
|
A new defined
term “ Truss and Millwork Inventory ” shall be
inserted in alphabetical order as follows:
|
““
Truss and Millwork Inventory ” means Inventory
consisting of trusses and millwork.”
|
|
(GGG)
|
A new defined
term “ Truss and Millwork Inventory Percentage ”
shall be inserted in alphabetical order as follows:
|
““
Truss and Millwork Inventory Percentage ” means, as of
any date of determination, the percentage of Holdings’ and
its Subsidiaries’ total Inventory consisting of Truss and
Millwork Inventory as of such date.”
|
|
(HHH)
|
A new defined
term “ Truss and Millwork Vendor Discount Reserve
” shall be inserted in alphabetical order as
follows:
|
““
Truss and Millwork Vendor Discount Reserve ” means, as
of any date of determination, (i) the Truss and Millwork Inventory
Percentage multiplied by (ii) the amount of reserves that
Holdings has recorded in its books as of such date, in accordance
with GAAP, in respect of vendor discounts earned on Holdings’
and its Subsidiaries’ Inventory.”
|
|
(III)
|
A new defined
term “ Truss and Millwork Volume Rebate Reserve
” shall be inserted in alphabetical order as
follows:
““
Truss and Millwork Volume Rebate Reserve ” means, as
of any date of determination, (i) the Truss and Millwork Inventory
Percentage multiplied by (ii) the amount of reserves that
Holdings has recorded in its books as of such date, in accordance
with GAAP, in respect of rebates earned by vendors relating to
volume purchases of Holdings’ and its Subsidiaries’
Inventory.”
|
|
|
(JJJ)
|
A new defined
term “ Warranty Reserve ” shall be inserted in
alphabetical order as follows:
|
““
Warranty Reserve ” means, as of any date of
determination, the amount of reserves that Holdings has recorded in
its books as of such date, in accordance with GAAP, in respect of
actual or estimated warranty claims relating to products or
services provided by Holdings and its
Subsidiaries.”
|
|
(KKK)
|
A new defined
term “ Wind-Down Business Units ” shall be
inserted in alphabetical order as follows:
|
““
Wind-Down Business Units ” means the business units
identified on Schedule 1.01B.”
|
|
(LLL)
|
A new defined
term “ Wind-Down of Non-Core Operations ” shall
be inserted in alphabetical order as follows:
|
““
Wind-Down of Non-Core Operations ” means the
termination or transfer of all employees and the cessation of
business operations (within the meaning of Section 165 of the Code)
of the Wind-Down Business Units.”
|
|
(ii)
|
Section 2.01 of
the Credit Agreement (captioned “ Amounts and Terms of
Commitment and Loans ”) shall be amended by amending and
restating the first two sentences of Section 2.01(b) as
follows:
|
“On the
terms and subject to the conditions of this Agreement, each
Revolving Lender severally agrees to advance to Holdings from time
to time during the period beginning on the Effective Date and
ending on the Revolving Loan Maturity Date such loans (each such
loan, a “ Revolving Loan ”) in Dollars as
Holdings may request under this Section 2.01(b) ;
provided , however , that (i) after giving effect to
any Borrowing of Revolving Loans, (A) the Effective Amount of all
Revolving Loans and Swingline Loans and the Effective Amount of all
L/C Obligations shall not exceed the combined Revolving Commitments
of the Revolving Lenders, (B) the Effective Amount of the Revolving
Loans of any Revolving Lender plus the participation of such
Revolving Lender in the Effective Amount of all L/C Obligations and
in the Effective Amount of all Swingline Loans shall not at any
time exceed such Revolving Lender’s Revolving Commitment and
(C) the Effective Amount of all Revolving Loans, Swingline Loans
and L/C Obligations shall not exceed the Borrowing Base then in
effect. Within the limits of each Revolving Lender’s
Revolving Commitment, and subject to the other terms and conditions
hereof, Holdings may borrow under this Section 2.01(b) ,
prepay under Section 2.07 and reborrow under this Section
2.01(b) .”
|
|
(iii)
|
Section 2.05 of
the Credit Agreement (captioned “ Termination or Reduction
of Commitments ”) shall be amended by deleting the
parenthetical “(except pursuant to Section
2.01(f))”.
|
|
|
(iv)
|
Section 2.06 of
the Credit Agreement (captioned “ Swingline Loans
”) shall be amended by amending and restating the proviso in
the first sentence thereof as follows:
|
“
provided that at no time shall (i) the sum of the Effective
Amount of all Swingline Loans plus the Effective Amount of
all Revolving Loans plus the Effective Amount of all L/C
Obligations exceed the combined Revolving Commitments of the
Revolving Lenders, (ii) the Effective Amount of all Swingline Loans
exceed the Swingline Commitment and (iii) the Effective Amount of
all Revolving Loans, Swingline Loans and L/C Obligations exceed the
Borrowing Base then in effect.”
|
|
(v)
|
Section 2.08 of
the Credit Agreement (captioned “ Mandatory Prepayments of
Loans; Mandatory Commitment Reductions ”) shall be
amended as follows:
|
|
|
(A)
|
Section
2.08(a)(ii) shall be amended and restated in its entirety as
follows:
|
“(ii) If
at any time the Effective Amount of all Revolving Loans and
Swingline Loans plus the Effective Amount of all L/C
Obligations exceeds the combined Revolving Commitments of the
Revolving Lenders, Holdings shall immediately, and without notice
or demand, prepay the outstanding principal amount of the Revolving
Loans, Swingline Loans and L/C Borrowings by an amount equal to the
applicable excess in the following order of priority: first,
Holdings shall prepay any L/C Borrowings then outstanding up to an
amount equal to the applicable excess; second, Holdings shall
prepay the Swingline Loans then outstanding up to an amount equal
to any remaining excess; and third, Holdings shall prepay the
Revolving Loans then outstanding up to an amount equal to any
remaining excess.”
|
|
(B)
|
Section
2.08(a)(iii) shall be amended and restated in its entirety as
follows:
|
“(iii) If
Holdings, the Company or any other Subsidiary shall at any time
make or agree to make a Disposition, then (A) Holdings shall
promptly notify the Administrative Agent of such Disposition
(including notice of the amount of the estimated Net Proceeds to be
received by Holdings, the Company or such other Subsidiary in
respect thereof), and (B) promptly upon, and in no event later than
one (1) Business Day after, receipt by Holdings, the Company or
such other Subsidiary of the Net Proceeds of such Disposition,
Holdings shall prepay the Term B Loans in an aggregate amount equal
to 100% of the amount of the Net Proceeds of such Disposition;
provided , however , that with respect to any
Non-Wholly-Owned Subsidiary, Holdings shall only be required to
prepay the Term B Loans as provided above in an amount equal to the
ratable portion of the Net Proceeds received by such
Non-Wholly-Owned Subsidiary based on Holdings’ direct or
indirect interest in such Non-Wholly-Owned Subsidiary; and
provided further , however , that if the Net Proceeds
of any Disposition are less than $100,000, then Holdings may delay
the prepayment of the Term B Loans required under this Section
2.08(a)(iii) until such time as aggregate Net Proceeds from
Dispositions in respect of which a prepayment under this Section
2.08(a)(iii) has not been made exceed $100,000.”
|
|
(C)
|
Section
2.08(a)(v) shall be amended and restated in its entirety as
follows:
|
“(v) If
at any time the Effective Amount of all Revolving Loans and
Swingline Loans plus the Effective Amount of all L/C
Obligations exceeds the Borrowing Base then in effect, Holdings
shall immediately, and without notice or demand, prepay the
outstanding principal amount of the Revolving Loans, Swingline
Loans and L/C Borrowings and Cash Collateralize the L/C Obligations
by an amount equal to the applicable excess in the following order
of priority: first, Holdings shall prepay any L/C Borrowings then
outstanding up to an amount equal to the applicable excess; second,
Holdings shall prepay the Swingline Loans then outstanding up to an
amount equal to any remaining excess; third, Holdings shall prepay
the Revolving Loans then outstanding up to an amount equal to any
remaining excess; and fourth, Holdings shall Cash Collateralize the
L/C Obligations then outstanding up to an amount equal to any
remaining excess in accordance with Section 3.07
.”
|
|
(D)
|
Section
2.08(a)(vii) shall be amended by (1) re-designating such Section as
Section 2.08(a)(xi) and (2) amending and restating such Section in
its entirety as follows:
|
“(xi) Any
prepayments pursuant to this Section 2.08 shall be subject
to Section 4.04 and applied, first, to any Base Rate Loans
then outstanding and then to Offshore Rate Loans with the shortest
Interest Periods remaining. Holdings shall pay, together with each
prepayment under this Section 2.08 , accrued interest (other
than PIK Interest, except as otherwise provided in Section
2.10(b) ) on the amount of any Loans prepaid and any amounts
required pursuant to Section 4.04 . Prepayments of Term B
Loans shall be applied to reduce the Term B Loans with respect to
each remaining installment of principal pro rata in accordance with
the then remaining installments payable under Section
2.09(a) .”
|
|
(E)
|
New Sections
2.08(a)(vii), 2.08(a)(viii), 2.08(a)(ix) and 2.08(a)(x) shall be
inserted as follows:
|
“(vii) If
Holdings, the Company or any other Subsidiary shall at any time or
from time to time receive cash, checks or other cash equivalent
financial instruments in respect of the BMCI Liquidation (other
than any such items received on or prior to the Second Amendment
Effective Date and applied to prepay the Term B Loans) (“
BMCI Liquidation Proceeds ”), then promptly upon, and
in no event later than one (1) Business Day after, receipt by
Holdings, the Company or such other Subsidiary of BMCI Liquidation
Proceeds, Holdings shall prepay the outstanding principal amount of
the Revolving Loans, Swingline Loans and L/C Borrowings and Cash
Collateralize the Obligations by an aggregate amount equal to 100%
of the Dollar amount of such BMCI Liquidation Proceeds in the
following order of priority: first, Holdings shall prepay any L/C
Borrowings to the extent L/C Borrowings in a sufficient amount are
then outstanding; second, Holdings shall prepay the Swingline Loans
to the extent Swingline Loans in a sufficient amount are then
outstanding; third, Holdings shall prepay the Revolving Loans to
the extent Revolving Loans in a sufficient amount are then
outstanding; and fourth, Holdings shall Cash Collateralize the
Obligations in accordance with Section 2.17 .
(viii) If
Holdings, the Company or any other Subsidiary shall at any time or
from time to time receive cash, checks or other cash equivalent
financial instruments from any Governmental Authority in respect of
the anticipated federal tax refunds for tax years 2006 and 2007 and
the state tax refunds for a tax year 2008 net operating loss
carryback (all such amounts net of settlement payments for open
audit years, “ Tax Refund Proceeds ”), then
promptly upon, and in no event later than one (1) Business Day
after, receipt by Holdings, the Company or such other Subsidiary of
Tax Refund Proceeds, Holdings shall (A) prepay the Term B Loans in
an aggregate amount equal to 70% of the Dollar amount of such Tax
Refund Proceeds and (B) prepay the outstanding principal amount of
the Revolving Loans, Swingline Loans and L/C Borrowings and Cash
Collateralize the Obligations by an aggregate amount equal to 30%
of the Dollar amount of such Tax Refund Proceeds in the following
order of priority: first, Holdings shall prepay any L/C Borrowings
to the extent L/C Borrowings in a sufficient amount are then
outstanding; second, Holdings shall prepay the Swingline Loans to
the extent Swingline Loans in a sufficient amount are then
outstanding; third, Holdings shall prepay the Revolving Loans to
the extent Revolving Loans in a sufficient amount are then
outstanding; and fourth, Holdings shall Cash Collateralize the
Obligations in accordance with Section 2.17 .
(ix) If as of
the close of business on any Business Day the balance in the Cash
Collateral Account on such day exceeds $25,000,000, then Holdings
shall within one (1) Business Day, and without notice or demand,
prepay the outstanding principal amount of the Revolving Loans,
Swingline Loans and L/C Borrowings and Cash Collateralize the
Obligations by an amount equal to the applicable excess in the
following order of priority: first, Holdings shall prepay any L/C
Borrowings then outstanding up to an amount equal to the applicable
excess; second, Holdings shall prepay the Swingline Loans then
outstanding up to an amount equal to any remaining excess; third,
Holdings shall prepay the Revolving Loans then outstanding up to an
amount equal to any remaining excess; and fourth, Holdings shall
Cash Collateralize the Obligations in accordance with Section
2.17 .
(x) Following
the end of each fiscal year of Holdings, commencing with the fiscal
year ending December 31, 2010, Holdings shall prepay the Term B
Loans in an aggregate amount equal to 75% of Excess Cash Flow for
such fiscal year. Each prepayment pursuant to this Section
2.08(a)(x) shall be made on or prior to the date that is five
Business Days after the date on which financial statements are
delivered pursuant to Section 7.01 with respect to the
fiscal year for which Excess Cash Flow is being
calculated.”
|
|
(F)
|
Section 2.08(c)
shall be amended by deleting the text “ Section
2.01(a)(iii), 2.01(a)(iv), 2.01(a)(v) or 2.01(a)(vi) ”
and replacing with the text “ Section 2.08(a)
.”
|
|
|
(vi)
|
Section 2.10 of
the Credit Agreement (captioned “ Interest ”)
shall be amended as follows:
|
|
|
(A)
|
Section 2.10(a)
shall be amended and restated in its entirety as
follows:
|
“(a) (i)
Subject to Section 2.10(c) below, each Revolving Loan and
Term B Loan shall bear interest on the outstanding principal amount
thereof from the applicable Borrowing Date at a rate per annum
equal to (A) the greater of the Offshore Rate and 3.00% or (B) the
Base Rate, as the case may be (and subject to Holdings’ right
to convert to other Types of Loans under Section 2.04 ),
plus the Applicable Margin; and (ii) each Swingline Loan shall bear
interest on the outstanding principal amount thereof from the
applicable Borrowing Date at a rate per annum equal to the Base
Rate plus the Applicable Margin (for Base Rate Loans), or at
such other rate as may be agreed to by the Swingline Lender. Each
Term B Loan shall bear additional interest on the outstanding
principal amount thereof from the Second Amendment Effective Date
at a rate per annum equal to the PIK Margin (such additional
interest, the “ PIK Interest
”).”
|
|
(B)
|
Section 2.10(b)
shall be amended and restated in its entirety as
follows:
|
“(b)
Interest (other than PIK Interest) on each Revolving Loan, Term B
Loan and Swingline Loan shall be paid in arrears on each Interest
Payment Date. PIK Interest on each Term B Loan shall be paid in
arrears on the date of maturity of the Term B Loans (whether at
maturity, upon acceleration, or otherwise). Interest shall also be
paid on the date of any prepayment of the Loans under Section
2.07 or Section 2.08 for the portion of such Loans so
prepaid and upon payment (including prepayment) in full thereof,
and on the Revolving Loan Maturity Date or Term B Loan Maturity
Date, as applicable; provided , however , that PIK
Interest need not be paid on the date of any prepayment of the
Loans under Section 2.07 or Section 2.08 except upon
payment (including prepayment) in full of the Term B Loans. During
the existence of any Event of Default, interest (other than PIK
Interest) shall be paid on demand of the Administrative Agent at
the request or with the consent of the Majority
Lenders.”
|
|
(vii)
|
Section 2.11 of
the Credit Agreement (captioned “ Fees ”) shall
be amended by (A) amending Section 2.11(a) to (1) delete the word
“and” immediately prior to clause (v) and replacing it
with a comma, and (2) inserting a new clause (vi) immediately prior
to the parenthetical at the end of such Section as follows:
“and (vi) that certain letter agreement among Holdings, Wells
Fargo and JPMorgan Chase Bank, N.A. dated [September 26],
2008”, and (B) adding a new Section 2.11(c) as
follows:
|
“(c) In
lieu of and in substitution for PIK Interest, each Term B Lender
may, by irrevocable written election made to the Administrative
Agent on or prior to the date that is 30 days after the Second
Amendment Effective Date, elect to have its Term B Loans accrue a
daily fee from the Second Amendment Effective Date at a rate per
annum equal to the PIK Margin (the “ PIK Fee ”).
The PIK Fee on each Term B Loan shall be paid in arrears on the
date of maturity of the Term B Loans (whether at maturity, upon
acceleration, or otherwise) and upon payment (including prepayment)
in full of the Term B Loans.”
|
|
(viii)
|
A new Section
2.16 shall be added to the Credit Agreement as follows:
|
“2.16
Warrants . On the Second Amendment Effective Date, Holdings
shall issue to each Lender warrants in substantially the form of
Exhibit L hereto to purchase such Lender’s
Proportionate Share of 2,824,732 shares of Holdings’ common
stock, par value $0.001 per share.”
|
|
(ix)
|
A new Section
2.17 shall be added to the Credit Agreement as follows:
|
“2.17
Cash Collateral . Upon the occurrence of the circumstances
described in Sections 2.08(a)(vii) , (viii) or
(ix) requiring Holdings to Cash Collateralize the
Obligations, then Holdings shall immediately Cash Collateralize the
Obligations in the applicable amount required under Sections
2.08(a)(vii) , (viii) and (ix) . Cash collateral
held under this Section 2.17 shall be maintained in the Cash
Collateral Account pursuant to the Security Agreement. Unless an
Event of Default has occurred and is continuing, Holdings shall
have access to the funds in the Cash Collateral Account and
Holdings may from time to time give instructions to the depository
bank directing the disposition of the funds in the Cash Collateral
Account. If an Event of Default has occurred and is continuing,
Holdings shall not have access to the funds in the Cash Collateral
Account and may not direct the disposition of the funds in the Cash
Collateral Account, except with the consent of the Administrative
Agent.”
|
|
(x)
|
Section 3.01 of
the Credit Agreement (captioned “The Letter of Credit
Subfacility ”) shall be amended by amending and restating
the proviso in the first sentence of Section 3.01(a) as
follows:
|
“
provided that the L/C Issuer shall not be obligated to
Issue, and no Revolving Lender shall be obligated to participate
in, any Letter of Credit if such Letter of Credit is not
denominated in Dollars or if as of the date of Issuance of such
Letter of Credit (the “ Issuance Date ”) and
after giving effect thereto (w) the Effective Amount of all L/C
Obligations plus the Effective Amount of all Revolving Loans
and Swingline Loans shall exceed the combined Revolving
Commitments, (x) the participation of any Revolving Lender in the
Effective Amount of all L/C Obligations and in the Effective Amount
of all Swingline Loans plus the Effective Amount of the
Revolving Loans of such Revolving Lender shall exceed such
Revolving Lender’s Revolving Commitment, (y) the Effective
Amount of L/C Obligations shall exceed the L/C Commitment or (z)
the Effective Amount of all Revolving Loans, Swingline Loans and
L/C Obligations shall exceed the Borrowing Base then in
effect.”
|
|
(xi)
|
Section 3.02 of
the Credit Agreement (captioned “ Issuance, Amendment and
Renewal of Letters of Credit ”) shall be amended by
deleting the text “clauses (x) through (z)” in Section
3.02(b) and replacing it with the text “clauses (w) through
(z)”.
|
|
|
(xii)
|
Section 3.07 of
the Credit Agreement (captioned “ Cash Collateral
Pledge ”) shall be amended and restated in its entirety
as follows:
|
“3.07
Cash Collateral Pledge . (a) Upon the request of the
Administrative Agent, if the L/C Issuer has honored any full or
partial drawing request on any Letter of Credit and such drawing
has resulted in an L/C Borrowing hereunder, or (b) if, as of the
Revolving Loan Maturity Date, any Letters of Credit may for any
reason remain outstanding and partially or wholly undrawn, or (c)
the occurrence of the circumstances described in Sections
2.08(a)(i) or (v) requiring Holdings to Cash
Collateralize Letters of Credit, then Holdings shall immediately
Cash Collateralize the L/C Obligations in an amount equal to such
L/C Obligations, or in such other applicable amount required under
Sections 2.08(a)(i) and (v) . Holdings shall, to the
extent necessary, make such addi
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