Exhibit 10(h)
WAIVER AND SEVENTH AMENDMENT
TO AMENDED AND RESTATED CREDIT AGREEMENT
THIS
WAIVER AND SEVENTH AMENDMENT TO AMENDED AND RESTATED CREDIT
AGREEMENT (this “ Amendment ”) dated as
of November 9, 2004, is by and among CLARION TECHNOLOGIES, INC., a
Delaware corporation (the “ Company ”),
and its subsidiaries party hereto (the Company and its subsidiaries
are collectively referred to herein as the “ Loan
Parties ” and individually referred to herein as a
“ Loan Party ”), the financial
institutions that are or may from time to time become parties
hereto (together with their respective successors and assigns, the
“ Banks ”), and BANK ONE, NA, a national
banking association with its main office in Chicago, Illinois, as
agent on behalf of the Banks (in such capacity, the “
Agent ”).
RECITALS
A.
The Loan Parties, the Banks, and the Agent are parties to that
certain Amended and Restated Credit Agreement dated as of April 14,
2003 (as amended, modified, restated, or replaced from time to
time, the “Credit Agreement ”), pursuant
to which the Banks agreed, subject to the terms thereof, to extend
credit to the Loan Parties. For purposes hereof, the term
“Loan Documents” shall mean such term as defined in the
Credit Agreement, plus this Amendment, and any documents executed
and delivered in conjunction with this Amendment.
B.
The Loan Parties have advised the Agent that prior to the date
hereof an Event of Default has occurred under the terms of the
Credit Agreement on account of the Loan Parties’ failure to
comply with the provisions of Section 10.6.3 of the Credit
Agreement as of the fiscal quarter ending on or about September 30,
2004, and have requested that the Agent and the Banks waive such
Event of Default The Agent and the Banks are willing to provide the
waiver requested by the Loan Parties on the terms set forth
herein.
C.
The parties hereto further desire to amend the Credit Agreement as
set forth herein.
TERMS
In
consideration of the premises and of the mutual agreements herein
contained, the parties hereto agree as follows:
ARTICLE
I. WAIVER AND AMENDMENT . Upon the conditions set forth in
Article III being fulfilled, (a) the Agent and the Banks waive any
Event of Default arising under the Credit Agreement on account of
the Loan Parties failure to comply with the terms of Section 10.6.3
of the Credit Agreement as of the end of the fiscal quarter ending
on or about September 30, 2004, and (b) the Credit Agreement shall
be amended as follows:
1.1 Section 10.6.2 of the
Credit Agreement is amended and restated in full, to read as
follows:
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10.6.2 Senior Debt to EBITDA Ratio . Not permit
the Senior Debt to EBITDA Ratio to be greater than 2.15 to 1.00 as
of the end of the Company’s fiscal quarter ending on or about
December 31, 2004 or the end of any fiscal quarter thereafter; such
ratio to be determined in accordance with GAAP using the ratio of
Senior Debt as of the end of such fiscal quarter to EBITDA for the
period of four consecutive fiscal quarters of the Company then
ending.
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1.2 Section 10.6.3 of the
Credit Agreement is amended and restated in full, to read as
follows:
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10.6.3 Total Debt to EBITDA Ratio . Not permit the
Total Debt to EBITDA Ratio to be greater than 4.25 to 1.00 as of
the end of the Company’s fiscal quarter ending on or about
December 31, 2004 or the end of any fiscal quarter thereafter; such
ratio to be determined in accordance with GAAP using the ratio of
Total Debt as of the end of such fiscal quarter to EBITDA for the
period of four consecutive fiscal quarters of the Company then
ending.
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1.3 Section 10.6.4 of the
Credit Agreement is amended and restated in full, to read as
follows:
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10.6.4 EBITDA . Not permit EBITDA to be less than
(i) $1,300,000 for the Company’s fiscal quarter ending on or
about December 31, 2004, or (ii) $2,200,000 for the Company’s
fiscal quarter ending on or about March 31, 2005 or any fiscal
quarter thereafter, such amount to be determined in accordance with
GAAP for the period of such fiscal quarter of the Company then
ending.
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ARTICLE
II. REPRESENTATIONS AND WARRANTIES . Each of the Loan
Parties represents and warrants to the Agent and the Banks
that:
2.1
The execution, delivery,
and performance of this Amendment is within its powers, has been
duly authorized by all necessary corporate or company action, as
the case may be, and is not in contravention of any law, rule, or
regulation, or any judgment, decree, writ, injunction, order or
award of any arbitrator, court or governmental authority, or of the
terms of its Certificate of Incorporation or Articles of
Organization, as the case may be, or By-laws or Operating
Agreement, as the case may be, or of any contract or undertaking to
which it is a party or by which it or its properties is or may be
bound.
2.2
This Amendment is the
legal, valid, and binding obligation of each Loan Party,
enforceable against it in accordance with the respective terms
hereof.
2.3
After giving effect to
the amendments herein contained, except as set forth on Schedule
2.3 hereof, the representations and warranties contained in Section
9 of the Credit Agreement are true on and as of the date hereof
with the same force and effect as if made on and as of the date
hereof.
2.4 No Event of Default or
Unmatured Event of Default exists or has occurred or is continuing
on the date hereof.
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ARTICLE
III. CONDITIONS OF EFFECTIVENESS . This Amendment shall not
become effective until each of the following has been
satisfied:
3.1 This Amendment shall
have been executed by the Loan Parties, the Agent, and the
Banks.
3.2
The Loan Parties shall
furnish to the Agent such certified copies of the resolutions of
the Board of Directors or the members, as the case may be, of the
Loan Parties as requested by the Agent approving this Amendment,
and of all documents evidencing other necessary corporate or
company action, as the case may be, and governmental approvals, if
any, with respect to this Amendment.
3.3
The Loan Parties shall
furnish to the Agent such other approvals, opinions, or documents
as the Agent may reasonably request.
3.4
The Loan Parties shall
have paid all out of pocket fees and disbursements of the Agent,
including all unpaid fees and disbursements of Dickinson Wright
PLLC due and owing as of the date of this Amendment.
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