Exhibit 10.76

 

SIXTH AMENDMENT TO SECOND AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

 

THIS SIXTH AMENDMENT TO SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
(hereinafter, this “Agreement”) is entered into as of the 27th day of October,
2003, to be effective as of June 30, 2003 (the “Effective Date”), by and among
IDS ENGINEERING, INC., d/b/a ENGLOBAL ENGINEERING, INC., a Texas corporation,
THERMAIRE, INC., d/b/a THERMAL CORPORATION, a Texas corporation, ENGLOBAL
CONSTANT POWER, INC., a Texas corporation, ENGLOBAL CORPORATE SERVICES, INC., a
Texas corporation, IDS ENGINEERING MANAGEMENT, LC, a Texas limited liability
company, ENGLOBAL ENGINEERING, INC., a Texas corporation, ENGLOBAL SYSTEMS,
INC., a Texas corporation, PETROCON ENGINEERING OF LOUISIANA, INC., a Louisiana
corporation, R.P.M. ENGINEERING, INC., d/b/a ENGLOBAL ENGINEERING, INC., a
Louisiana corporation, ENGLOBAL CONSTRUCTION RESOURCES, INC., d/b/a PETROCON
CONSTRUCTION RESOURCES, INC., a Texas corporation, and ENGLOBAL TECHNOLOGIES,
INC., a Texas corporation, (individually, a “Borrower” and collectively,
“Borrowers”), FLEET CAPITAL CORPORATION, a Rhode Island corporation (“Fleet”),
as Agent (Fleet, in such capacity, the “Agent”), and the financial
institution(s) listed on the signature pages hereof and their respective
successors and assigns (each individually a “Lender” and collectively
“Lenders”).

 

RECITALS

 

A.    Borrowers, Agent and Lender have entered into that certain Second Amended
and Restated Loan and Security Agreement, dated as of December 21, 2001, as
amended by that certain First Amendment to Second Amended and Restated Loan and
Security Agreement entered into as of March 26, 2002, executed by Borrowers,
Agent and Lender, and by that certain Second Amendment to Second Amended and
Restated Loan and Security Agreement, dated July 31, 2002, executed by
Borrowers, Agent and Lender, and by that certain Third Amendment to Second
Amended and Restated Loan and Security Agreement, dated November, 2002, executed
by Borrowers, Agent and Lender, and by that certain Fourth Amendment to Second
Amended and Restated Loan and Security Agreement and Amendment to other Loan
Documents, entered into on March 26, 2003, executed by Borrowers, Agent and
Lender, and by that certain Fifth Amendment to Second Amended and Restated Loan
and Security Agreement, entered into as of August 7, 2003, executed by Borrower,
Agent and Lender (as amended, the “Loan Agreement”).

 

B.    Borrowers, Lender and Agent desire to amend the Loan Agreement as
hereinafter set forth.

 

NOW, THEREFORE, in consideration of the premises herein contained and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound, agree as follows:

 

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ARTICLE I

Definitions

 

1.01    Capitalized terms used in this Agreement, to the extent not otherwise
defined herein, shall have the same meaning as in the Loan Agreement, as amended
hereby.

 

ARTICLE II

Amendments

 

2.01    Amendment to Section 8.3.2 of the Loan Agreement.    Effective as of the
Effective Date, Section 8.3.2 of the Loan Agreement is hereby deleted in its
entirety and the following is substituted in lieu thereof:

 

“8.3.2 Ratio of Senior Debt and Equus Term Note to EBITDA. Maintain, on a
Consolidated basis, as of the last day of each calendar month, beginning July
31, 2003 and continuing on the last day of each thereafter occurring calendar
month, a ratio of (i) the sum of (a) Borrower’s Senior Debt on such date
(provided, however, that in this calculation of the Senior Debt of Borrower, the
unpaid amount of the Revolving Credit Loans on such date shall be deemed to be
the Average Monthly Revolving Credit Loan Balance for such month) and (b) the
unpaid principal amount of the Equus Term Note on such date, to (ii) Borrower’s
EBITDA for the twelve- (12) calendar month period ending on such date, equal to
or less than 2.75 to 1.00.”

 

ARTICLE III

Conditions Precedent

 

3.01    Conditions to Effectiveness.    Notwithstanding anything herein to the
contrary, the effectiveness of this Agreement is subject to the satisfaction of
the following conditions precedent, unless specifically waived in writing by
Agent and Lender:

 

(a)    Agent shall have received, in form and substance satisfactory to Agent,
(i) this Agreement, duly executed by Borrowers, (ii) the Consent, Ratification
and Release attached hereto, duly executed by each Guarantor, and (iii) such
additional documents, instruments and information as Agent or its legal counsel,
Patton Boggs LLP, may request.

 

(b)    All corporate proceedings taken in connection with the transactions
contemplated by this Agreement and the agreements described in clause (a) above
and all documents, instruments and other legal matters incident thereto shall be
satisfactory to Agent and its legal counsel, Patton Boggs LLP.

 

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ARTICLE IV

No Waiver

 

4.01    Nothing contained herein shall be construed as a waiver by Agent or
Lender of any covenant or provision of the Loan Agreement, the other Loan
Documents, this Agreement, or of any other contract or instrument between
Borrowers and Agent and/or Lender, and Agent and/or Lender’s failure at any time
or times hereafter to require strict performance by Borrowers of any provision
thereof shall not waive, affect or diminish any right of Agent and/or Lender to
thereafter demand strict compliance therewith. Agent and Lender hereby reserve
all rights granted under the Loan Agreement, the other Loan Documents, this
Agreement and any other contract or instrument between Borrowers, Agent and/or
Lender.

 

ARTICLE V

Ratifications, Representations and Warranties

 

5.01    Ratifications.    The terms and provisions set forth in this Agreement
shall modify and supersede all inconsistent terms and provisions set forth in
the Loan Agreement and the other Loan Documents, and except as expressly
modified and superseded by this Agreement, the terms and provisions of the Loan
Agreement and the other Loan Documents are ratified and confirmed and shall
continue in full force and effect. Borrowers, Agent and Lender agree that the
Loan Agreement and the other Loan Documents, as amended hereby, shall continue
to be legal, valid, binding and enforceable in accordance with their respective
terms.

 

5.02    Representations and Warranties.    Borrowers hereby represent and
warrant to Agent and Lender that (a) the execution, delivery and performance of
this Agreement and any and all other Loan Documents executed and/or delivered in
connection herewith have been authorized by all requisite corporate action on
the part of Borrowers and will not violate the Articles of Incorporation or
Bylaws of Borrowers; (b) the representations and warranties contained in the
Loan Agreement, as amended hereby, and any other Loan Document are true and
correct on and as of the date hereof and on and as of the date of execution
hereof as though made on and as of each such date; (c) no Event of Default or
Default under the Loan Agreement has occurred and is continuing, unless such
Event of Default or Default has been specifically waived in writing by Agent and
Lender; (d) Borrowers are in full compliance with all covenants and agreements
contained in the Loan Agreement and the other Loan Documents, as amended hereby;
and (e) Borrowers have not amended their Articles of Incorporation or Bylaws
since the date of the original, unamended Loan Agreement.

 

ARTICLE VI

Miscellaneous Provisions

 

6.01    Survival of Representations and Warranties.    All representations and
warranties made in the Loan Agreement or any other Loan Document, including,
without limitation, any document furnished in connection with this Agreement,
shall survive the execution and delivery of this Agreement and the other Loan
Documents, and no investigation by Agent or Lender or any closing shall affect
the representations and warranties or the right of Agent or Lender to rely upon
them.

 

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6.02    Reference to Loan Agreement.    Each of the Loan Documents, including
the Loan Agreement and any and all other agreements, documents or instruments
now or hereafter executed and delivered pursuant to the terms hereof or pursuant
to the terms of the Loan Agreement, as amended hereby, are hereby amended so
that any reference in such Loan Documents to the Loan Agreement shall mean a
reference to the Loan Agreement, as amended hereby.

 

6.03    Expenses of Agent and Lender.    As provided in the Loan Agreement,
Borrowers agree to pay on demand all costs and expenses incurred by Agent and
Lender in connection with the preparation, negotiation and execution of this
Agreement and the other Loan Documents executed pursuant hereto and any and all
amendments, modifications, and supplements thereto, including, without
limitation, the costs and fees of Agent’s and Lender’s legal counsel, and all
costs and expenses incurred by Agent and/or Lender in connection with the
enforcement or preservation of any rights under the Loan Agreement, as amended
hereby, or any other Loan Documents, including, without limitation, the costs
and fees of Agent’s and Lender’s legal counsel.

 

6.04    Severability.    Any provision of this Agreement held by a court of
competent jurisdiction to be invalid or unenforceable shall not impair or
invalidate the remainder of this Agreement and the effect thereof shall be
confined to the provision so held to be invalid or unenforceable.

 

6.05    Successors and Assigns.    This Agreement is binding upon and shall
inure to the benefit of Agent, Lender and Borrowers and their respective
successors and assigns, except Borrowers may not assign or transfer any of their
rights or obligations hereunder without the prior written consent of Lender.

 

6.06    Counterparts.    This Agreement may be executed in one or more
counterparts, each of which when so executed shall be deemed to be an original,
but all of which when taken together shall constitute one and the same
instrument.

 

6.07    Effect of Waiver.    No consent or waiver, express or implied, by Agent
or Lender to or for any breach of or deviation from any covenant or condition by
Borrowers shall be deemed a consent to or waiver of any other breach of the same
or any other covenant, condition or duty.

 

6.08    Headings.    The headings, captions, and arrangements used in this
Agreement are for convenience only and shall not affect the interpretation of
this Agreement.

 

6.09    Applicable Law.    THIS AGREEMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED
PURSUANT HERETO SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE PERFORMABLE IN AND
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
TEXAS.

 

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6.10    Final Agreement.    THE LOAN DOCUMENTS, AS AMENDED HEREBY, REPRESENT THE
ENTIRE EXPRESSION OF THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF ON
THE DATE THIS AGREEMENT IS EXECUTED. THE LOAN DOCUMENTS, AS AMENDED HEREBY, MAY
NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES. NO
MODIFICATION, RESCISSION, WAIVER, RELEASE OR AMENDMENT OF ANY PROVISION OF THIS
AGREEMENT SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED BY BORROWERS,
AGENT AND LENDER.

 

6.11    Release.    EACH BORROWER HEREBY ACKNOWLEDGES THAT IT HAS NO DEFENSE,
COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE
WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS
LIABILITY TO REPAY THE “OBLIGATIONS” OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF
ANY KIND OR NATURE FROM AGENT AND/OR LENDER. EACH BORROWER HEREBY VOLUNTARILY
AND KNOWINGLY RELEASES AND FOREVER DISCHARGES AGENT AND LENDER, THEIR RESPECTIVE
PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE
CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND
LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED,
SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN
EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AGREEMENT IS
EXECUTED, WHICH SUCH BORROWER MAY NOW OR HEREAFTER HAVE AGAINST AGENT AND/OR
LENDER, THEIR RESPECTIVE PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND
ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF
CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM
ANY “LOANS”, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING,
TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST
LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE LOAN
AGREEMENT OR OTHER AGREEMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS
AGREEMENT.

 

[The Remainder of this Page Intentionally Left Blank]

 

 

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ACCEPTED as of the date first written above.

 

BORROWERS: IDS ENGINEERING, INC., d/b/a ENGLOBAL ENGINEERING, INC. By:  

/s/    R. W. Raiford

 

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Name: R. W. Raiford

Title: CFO

 

THERMAIRE, INC., d/b/a THERMAL CORPORATION By:  

/s/    R. W. Raiford

 

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Name: R. W. Raiford

Title: CFO

 

ENGLOBAL CONSTANT POWER, INC. By:  

/s/    R. W. Raiford

 

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Name: R. W. Raiford

Title: CFO

 

ENGLOBAL CORPORATE SERVICES, INC. By:  

/s/    R. W. Raiford

 

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Name: R. W. Raiford

Title: CFO

 

IDS ENGINEERING MANAGEMENT, LC By:  

/s/    R. W. Raiford

 

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Name: R. W. Raiford

Title: CFO

 

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ENGLOBAL ENGINEERING, INC. By:  

/s/    R. W. Raiford

 

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Name: R. W. Raiford

Title: CFO

 

ENGLOBAL SYSTEMS, INC. By:  

/s/    R. W. Raiford

 

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Name: R. W. Raiford

Title: CFO

 

PETROCON ENGINEERING OF LOUISIANA, INC. By:  

/s/    R. W. Raiford

 

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Name: R. W. Raiford

Title: CFO

 

R.P.M. ENGINEERING, INC., d/b/a ENGLOBAL ENGINEERING, INC. By:  

/s/    R. W. Raiford

 

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Name: R. W. Raiford

Title: CFO

 

ENGLOBAL CONSTRUCTION RESOURCES, INC. By:  

/s/    R. W. Raiford

 

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Name: R. W. Raiford

Title: CFO

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ENGLOBAL TECHNOLOGIES, INC. By:  

/s/    R. W. Raiford

 

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Name: R. W. Raiford

Title: CFO

 

Accepted in Dallas, Dallas County, Texas: AGENT:

FLEET CAPITAL CORPORATION

 

  By:  

/s/    Dan Hughes

 

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Name:

 

Title:

 

Dan Hughes

 

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Vice President

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LENDERS: FLEET CAPITAL CORPORATION      

 

By:  

/s/    Dan Hughes

 

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Name:

 

Title:

 

Dan Hughes

 

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Vice President

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CONSENT, RATIFICATION AND RELEASE

 

Each of the undersigned hereby consents to the terms of the within and foregoing
Agreement, confirms and ratifies the terms of its guaranty agreement relating to
the Obligations and of each collateral document it has executed in connection
with the Obligations (collectively, the “Documents”), and acknowledges that the
Documents to which it is a party are in full force and effect and ratifies the
same, that it has no defense, counterclaim, set-off or any other claim to
diminish its liability under such Documents, that its consent is not required to
the effectiveness of the within and foregoing Agreement, and that no consent by
it is required for the effectiveness of any future amendment, modification,
forbearance or other action with respect to the Loans, the Collateral, or any of
the other Loan Documents. EACH OF THE UNDERSIGNED HEREBY VOLUNTARILY AND
KNOWINGLY RELEASES AND FOREVER DISCHARGES EACH OF AGENT AND EACH LENDER, ITS
PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE
CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND
LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED,
SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN
EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AGREEMENT IS
EXECUTED, WHICH THE UNDERSIGNED MAY NOW OR HEREAFTER HAVE AGAINST AGENT OR ANY
LENDER, ITS PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND
IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION
OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY “LOANS”, INCLUDING,
WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING
OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE
EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE LOAN AGREEMENT OR OTHER LOAN
DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AGREEMENT.

 

ENGLOBAL CORPORATION By:  

/s/    R. W. Raiford

 

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Name: R. W. Raiford

Title: CFO

 

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IDS ENGINEERING, INC., d/b/a ENGLOBAL ENGINEERING, INC. By:  

/s/    R. W. Raiford

 

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Name: R. W. Raiford

Title: CFO

 

THERMAIRE, INC., d/b/a THERMAL CORPORATION By:  

/s/    R. W. Raiford

 

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Name: R. W. Raiford

Title: CFO

 

ENGLOBAL CONSTANT POWER, INC. By:  

/s/    R. W. Raiford

 

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Name: R. W. Raiford

Title: CFO

 

ENGLOBAL CORPORATE SERVICES, INC. By:  

/s/    R. W. Raiford

 

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Name: R. W. Raiford

Title: CFO

 

IDS ENGINEERING MANAGEMENT, LC By:  

/s/    R. W. Raiford

 

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Name: R. W. Raiford

Title: CFO

 

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