Exhibit 10.3 (a)

 

FIRST AMENDMENT TO

REAL ESTATE TERM CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO REAL ESTATE TERM CREDIT AGREEMENT (this “Amendment”)
dated as of March 26, 2003, by and among HUGHES SUPPLY, INC., a Florida
corporation (the “Parent”), HUGHES SUPPLY SHARED SERVICES, INC., a Delaware
corporation (the “Borrower”) and SUNTRUST BANK, a Georgia banking corporation
(the “Bank”).

 

W I T N E S S E T H:

 

WHEREAS, the Parent, the Borrower and the Bank have entered into that certain
Real Estate Term Credit Agreement, dated as of May 31, 2002 (the “Real Estate
Credit Agreement”; capitalized terms used herein and not otherwise defined
herein shall have the meanings ascribed to such terms in the Real Estate Credit
Agreement), whereby the Bank established a real estate term credit facility in
favor of the Borrower in an amount not exceeding $25,000,000; and

 

WHEREAS, the Parent and the Bank are entering into that certain Revolving Credit
Agreement, dated as of March 26, 2003, by and among the Parent, the lenders from
time to time parties thereto (the “Lenders”) and SunTrust Bank, as
Administrative Agent for the Lenders, Issuing Bank and Swingline Lender (the
“Credit Agreement”); and

 

WHEREAS, the parties hereto desire to amend the terms of the Real Estate Credit
Agreement as set forth herein to bring certain terms thereof into conformity
with the terms of the Credit Agreement;

 

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

 

1.    The Real Estate Credit Agreement is hereby amended as follows:

 

a.    The definitions of “1999 Line of Credit Agreement” and the “1999 Revolving
Credit Agreement” are hereby deleted, and in lieu thereof, the following new
definition of “Syndicated Credit Agreement” shall be inserted:

 

“Syndicated Credit Agreement” shall mean that certain Revolving Credit
Agreement, dated as of March 26, 2003, by and among the Parent, the lenders from
time to time parties thereto and SunTrust Bank, as Administrative Agent, as the
same may be amended, restated,

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supplemented, replaced, refinanced or otherwise modified from time to time, so
long as SunTrust Bank remains the Administrative Agent thereof;

 

b.    All prior references to the “1999 Line of Credit Agreement” and the “1999
Revolving Credit Agreement” shall be deemed references to the “Syndicated Credit
Agreement”; and

 

c.    The definition of “Term Credit Termination Date” is hereby deleted, and in
lieu thereof, the following new definition of “Term Credit Termination Date”
shall be inserted:

 

“Term Credit Termination Date” shall mean the earlier of (i) June 22, 2006, and
(ii) the date on which the Term Credit Commitment is terminated in accordance
with Article IX.

 

2.    To induce the Bank to enter into this Amendment, each Credit Party hereby
represents and warrants to the Bank that:

 

(a)    The execution, delivery and performance by such Credit Party of this
Amendment (i) are within such Credit Party’s power and authority; (ii) have been
duly authorized by all necessary corporate and shareholder action; (iii) are not
in contravention of any provision of such Credit Party’s certificate of
incorporation or bylaws or other organizational documents; (iv) do not violate
any law or regulation, or any order or decree of any governmental authority; (v)
do not conflict with or result in the breach or termination of, constitute a
default under or accelerate any performance required by, any indenture,
mortgage, deed of trust, lease, agreement or other instrument to which such
Credit Party or any of its Subsidiaries is a party or by which such Credit Party
or any such Subsidiary or any of their respective property is bound; (vi) do not
result in the creation or imposition of any Lien upon any of the property of
such Credit Party or any of its Subsidiaries; and (vii) do not require the
consent or approval of any governmental authority or any other person;

 

(b)    This Amendment has been duly executed and delivered for the benefit of or
on behalf of each Credit Party and constitutes a legal, valid and binding
obligation of each Credit Party, enforceable against such Credit Party in
accordance with its terms except as the enforceability hereof may be limited by
bankruptcy, insolvency, reorganization, moratorium and other laws affecting
creditors’ rights and remedies in general; and

 

(c)    After giving effect to this Amendment, the representations and warranties
contained in the Real Estate Credit Agreement and the other Loan Documents are
true and correct in all material respects, and no Default or Event of Default
has occurred and is continuing as of the date hereof.

 

3.    Each Guarantor consents to the execution and delivery by the Borrower of
this Amendment and jointly and severally ratifies and confirms the terms of the
Guaranty

 

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Agreement (or Article VIII of the Real Estate Credit Agreement, with respect to
the Parent) with respect to the Indebtedness of the Borrower now or hereafter
outstanding under the Real Estate Credit Agreement as amended hereby and all
promissory notes issued thereunder. Each Guarantor acknowledges that,
notwithstanding anything to the contrary contained herein or in any other
document evidencing any Indebtedness of the Borrower to the Bank or any other
obligation of the Borrower, or any actions now or hereafter taken by the Bank
with respect to any obligation of the Borrower, the Guaranty Agreement (and
Article VIII of the Real Estate Credit Agreement with respect to the Parent) (i)
is and shall continue to be a primary obligation of the Guarantors, (ii) is and
shall continue to be an absolute, unconditional, joint and several, continuing
and irrevocable guaranty of payment, and (iii) is and shall continue to be in
full force and effect in accordance with its terms. Nothing contained herein to
the contrary shall release, discharge, modify, change or affect the original
liability of the Guarantors under the Guaranty Agreement (or Article VIII of the
Real Estate Credit Agreement with respect to the Parent).

 

4.    Except as set forth expressly herein, all terms of the Credit Agreement,
as amended hereby, and the other Loan Documents shall be and remain in full
force and effect and shall constitute the legal, valid, binding and enforceable
obligations of the Borrower to the Lenders and the Administrative Agent. The
execution, delivery and effectiveness of this Amendment shall not, except as
expressly provided herein, operate as a waiver of any right, power or remedy of
the Lenders under the Credit Agreement, nor constitute a waiver of any provision
of the Credit Agreement. This Amendment shall constitute a Loan Document for all
purposes of the Credit Agreement.

 

5.    This Amendment shall be governed by, and construed in accordance with, the
internal laws of the State of New York and all applicable federal laws of the
United States of America.

 

6.    This Amendment is not intended by the parties to be, and shall not be
construed to be, a novation of the Credit Agreement or an accord and
satisfaction in regard thereto.

 

7.    The Borrower agrees to pay on demand all costs and expenses of the Bank in
connection with the preparation, execution and delivery of this Amendment,
including, without limitation, the reasonable fees and out-of-pocket expenses of
outside counsel for the Bank with respect thereto.

 

8.    This Amendment may be executed by one or more of the parties hereto in any
number of separate counterparts, each of which shall be deemed an original and
all of which, taken together, shall be deemed to constitute one and the same
instrument. Delivery of an executed counterpart of this Amendment by facsimile
transmission or by electronic mail in “.pdf” form shall be as effective as
delivery of a manually executed counterpart hereof.

 

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9.    This Amendment shall be binding upon and inure to the benefit of the
parties hereto, their respective successors, successors-in-titles, and assigns.

 

10.    This Amendment sets forth the entire understanding of the parties with
respect to the matters set forth herein, and shall supersede any prior
negotiations or agreements, whether written or oral, with respect thereto.

 

[signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed, under seal, by their respective authorized officers as of the day and
year first above written.

 

PARENT: HUGHES SUPPLY, INC.

By:

 

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Name:   David Bearman Title:   Chief Financial Officer

 

BORROWER: HUGHES SUPPLY SHARED SERVICES, INC.

By:

 

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Name:   David Bearman Title:   Treasurer

 

BANK:

SUNTRUST BANK

By:

 

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Name:     Title:    

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO REAL ESTATE TERM CREDIT AGREEMENT]

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    Acknowledged and Agreed to:     GUARANTORS: Address:  
CAROLINA PUMP & SUPPLY CORP

20 North Orange Avenue

Suite 200

Orlando, FL 32801

Attn: Treasurer

  DOUGLAS LEONHARDT & ASSOCIATES, INC.   ELECTRIC LABORATORIES AND SALES
CORPORATION   GILLELAND CONCRETE PRODUCTS, INC   HSI ACQUISITION CORPORATION    
HSI FUSION SERVICES, INC.     HSI INDIANA, LLC     HSI NORTH CAROLINA, LLC    
HUGHES AVIATION, INC.     HUGHES MRO, INC.     HUGHES SUPPLY (VA), INC.    
HUGHES WATER & SEWER COMPANY     JUNO INDUSTRIES, INC.     KAMEN SUPPLY COMPANY,
INC.     KINGSTON PIPE INDUSTRIES, INC.     METALS INCORPORATED     METALS,
INC.—GULF COAST DIVISION     MILLS & LUPTON SUPPLY COMPANY     MOORE ELECTRIC
SUPPLY, INC.     MOUNTAIN COUNTRY SUPPLY, INC.     OLANDER & BROPHY,
INCORPORATED     ONE-STOP SUPPLY, INC.     PAINE SUPPLY OF JACKSON, INC.    
PANHANDLE PIPE & SUPPLY CO., INC.     REACTION SUPPLY CORPORATION    
SCOTT-PARISH ELECTRICAL SUPPLY COMPANY     SHRADER HOLDING COMPANY, INC.    
STAINLESS TUBULAR PRODUCTS, INC.     USCO INCORPORATED     U.S. FUSION SERVICES,
INC.     UTILISERVE, INC.     WATERWORKS SALES COMPANY     WCC MERGER
CORPORATION     HUGHES SUPPLY CA, LLC     By:
                                                                      Name:
David Bearman     Title: Treasurer

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO REAL ESTATE TERM CREDIT AGREEMENT]

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Address:       L & T OF DELAWARE, INC. 1403 Foulk Road, Suite 102       SWS
ACQUISITION, LLC Wilmington, DE 19803       SWS FUNDING, LLC Attn: Treasurer    
           

By:

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        Name:         Title:

 

Address:   HSI FUNDING, LLC 1403 Foulk Road, Suite 102   HSI HOLDINGS, INC.
Wilmington, DE 19803   HSI IP, INC. Attn: Treasurer        

By:

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    Name:     Title:

 

Address:   SOUTHWEST STAINLESS, L.P. 1403 Foulk Road, Suite 102     Wilmington,
DE 19803   By:    Z&L ACQUISITION CORP., its General Partner Attn: Treasurer    
   

By:

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    Name: David Bearman     Title: Treasurer Address:   Z & L ACQUISITION CORP.
1403 Foulk Road, Suite 102     Wilmington, DE 19803     Attn: Treasurer        

By:

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    Name: David Bearman     Title: Treasurer Address:   NATIONAL POWERX, INC.
2800 Quail Run, Suit 100     Corinth, TX 76208     Attn: Treasurer  

By:

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    Name: David Bearman     Title: Treasurer

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO REAL ESTATE TERM CREDIT AGREEMENT]