Exhibit 10.2

 

SECOND AMENDMENT TO FOURTH AMENDED

AND RESTATED LOAN AND SECURITY AGREEMENT

AND FIRST AMENDMENT TO SUBORDINATION AGREEMENT

 

THIS SECOND AMENDMENT TO FOURTH AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
AND FIRST AMENDMENT TO SUBORDINATION AGREEMENT (“Amendment”) is made as of the
30th day of September, 2005 by and among PW Eagle, Inc., a Minnesota corporation
(“Borrower”), the lenders who are signatories hereto (“Lenders”), Bank of
America, N.A., a national banking association (“B of A”), as
successor-in-interest to Fleet Capital Corporation, as agent for Lenders
hereunder (B of A, in such capacity, being “Agent”) and Churchill Capital
Partners IV, L.P., a Delaware limited partnership (“Creditor”).

 

WITNESSETH:

 

WHEREAS, Borrower, Fleet Capital Corporation, Agent’s predecessor-in-interest,
and Lenders entered into a certain Fourth Amended and Restated Loan and Security
Agreement dated as of October 25, 2004, as amended by a certain First Amendment
to Fourth Amended and Restated Loan and Security Agreement dated as of March 15,
2005, by and among Borrower, Fleet Capital Corporation, Agent’s
predecessor-in-interest, and Lenders (said Fourth Amended and Restated Loan and
Security Agreement, as so amended, is hereinafter referred to as the “Loan
Agreement”);

 

WHEREAS, Fleet Capital Corporation, Agent’s predecessor-in-interest, and
Creditor entered into a certain Subordination Agreement dated as of October 24,
2004 (said Subordination Agreement is hereinafter referred to as the “2004
Subordination Agreement”);

 

WHEREAS, Borrower desires to amend and modify certain provisions of the Loan
Agreement and, subject to the terms hereof, Agent and Lenders are willing to
agree to such amendments and modifications; and

 

WHEREAS, Creditor and Agent desire to amend and modify certain provisions of the
2004 Subordination Agreement;

 

NOW THEREFORE, in consideration of the premises, the mutual covenants and
agreements herein contained, and any extension of credit heretofore, now or
hereafter made by Agent and Lenders to Borrower, the parties hereto hereby agree
as follows:

 

1. Definitions. All capitalized terms used herein without definition shall have
the meaning given to them in the Loan Agreement and/or the Subordination
Agreement, as applicable.

 

2. 2004 Subordinated Notes. The provisions of the Loan Agreement (including,
without limitation, subsection 8.2.6) and/or the 2004 Subordination Agreement
(including, without limitation, Section 3) notwithstanding, commencing September
30, 2005, Borrower may

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elect to pay in cash the full amount of interest owing on September 30, 2005,
and the last day of each month thereafter so long as, after giving effect to any
such cash interest payment, (w) the Fixed Charge Coverage Ratio for the most
recently ended twelve month period (not including the month of the interest
payment due date) equaled or exceeded 1.25 to 1, (x) Availability equals or
exceeds $20,000,000, (y) the per annum interest rate so paid in cash does not
exceed 19% for the Senior Subordinated Notes and 22.5% for the Junior
Subordinated Notes and (z) no Standstill Period is in effect.

 

3. Miscellaneous.

 

(a) This Amendment is limited as specified and shall not constitute an
amendment, modification or waiver of any other provision of the Loan Agreement,
any other Loan Document or the 2004 Subordination Agreement.

 

(b) This Amendment may be executed in any number of counterparts and by the
different parties hereto on separate counterparts, each of which counterparts
when executed and delivered shall be an original, but all of which shall
together constitute one and the same instrument.

 

4. Continuing Effect. Except as otherwise specifically set out herein, the
provisions of the Loan Agreement and the 2004 Subordination Agreement
(including, without limitation, subsection 8.2.6 of the Loan Agreement and
Section 3 of the Subordination Agreement) shall remain in full force and effect.

 

(Signature Page Follows)

 

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(Signature Page to Amendment)

 

IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year
specified at the beginning hereof.

 

PW EAGLE, INC., as Borrower

 

By:

 

    /s/ Dobson West

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Name:

 

Dobson West

   

Title:

 

Secretary

 

BANK OF AMERICA, N.A., as successor-in-

interest to Fleet Capital Corporation, as Agent and as

a Lender

 

By:

 

    /s/ Brian Conole

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Name:

 

Brian Conole

   

Title:

 

Senior Vice President

 

WELLS FARGO BUSINESS CREDIT, INC., as a

Lender

 

By:

 

    /s/ Mona M. Krueger

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Name:

 

Mona M. Krueger

   

Title:

 

Vice President

 

The CIT GROUP/BUSINESS CREDIT, INC., as a

Lender

 

By:

 

    /s/ Jack A. Myers

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Name:

 

Jack A. Myers

   

Title:

 

Vice President

 

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CHURCHILL CAPITAL PARTNERS IV, L.P., a

Delaware limited partnership, as Creditor

 

By:

 

Churchill Capital IV, L.L.C., its General Partner

By:

 

Churchill Capital Inc., as Managing Agent

     

By:

 

    /s/ Mark R. McDonald

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Name:

 

Mark R. McDonald

   

Title:

 

Partner

 

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