EXHIBIT 10.1

 

TENTH AMENDMENT TO CREDIT AGREEMENT

 

THIS TENTH AMENDMENT TO CREDIT AGREEMENT (the “Tenth Amendment”) is made
effective as of April 30, 2005, among PEMCO AVIATION GROUP, INC., a Delaware
corporation, PEMCO AEROPLEX, INC., an Alabama corporation, PEMCO ENGINEERS,
INC., a Delaware corporation, PEMCO WORLD AIR SERVICES, INC., a Delaware
corporation, SPACE VECTOR CORPORATION, a Delaware corporation (collectively, the
“Borrowers”), WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking
association (successor by merger to SouthTrust Bank), as Agent (the “Agent”),
WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association (successor
by merger to SouthTrust Bank), as a Lender, and COMPASS BANK, an Alabama banking
corporation, as a Lender. Capitalized terms used herein but not defined shall
have the meanings as set forth in the Credit Agreement, as amended (as
hereinafter defined).

 

WHEREAS, pursuant to that certain Credit Agreement dated as of December 16,
2002, among Borrowers, Agent, and the other Lender Parties a party thereto (the
“Credit Agreement”), Lenders made available, subject to the terms and conditions
thereof, (i) the Revolving Loan of up to $20,000,000.00, (ii) the Swing Line
Loan of up to $5,000,000.00, and (iii) the Term Loan of up to $5,000,000.00; and

 

WHEREAS, pursuant to that certain First Amendment to Credit Agreement dated as
of May 22, 2003, among Borrowers, Agent, and the other Lender Parties a party
thereto (the “First Amendment”), the Credit Agreement was amended in order to
extend to Borrowers the Treasury Stock Loan in the amount of up to
$5,000,000.00; and

 

WHEREAS, pursuant to that certain Second Amendment to Credit Agreement dated as
of November 24, 2003, among Borrowers, Agent, and the other Lender Parties a
party thereto (the “Second Amendment”), the Credit Agreement was amended in
order to (i) temporarily increase the Swing Line Loan Commitment to up to
$7,000,000.00, and (ii) temporarily increase the Revolving Loan Commitment to up
to $22,000,000.00; and

 

WHEREAS, pursuant to that certain Third Amendment to Credit Agreement dated as
of December 16, 2003, among Borrowers, Agent, and the other Lender Parties a
party thereto (the “Third Amendment”), the Credit Agreement was amended in order
to (i) increase the Swing Line Loan Commitment to up to $6,000,000.00, (ii)
increase the Revolving Loan Commitment to up to $25,000,000.00, and (iii) extend
the Revolving Loan Maturity Date from December 16, 2004 until December 16, 2005;
and

 

WHEREAS, pursuant to that certain Fourth Amendment to Credit Agreement dated as
of May 7, 2004, among Borrowers, Agent, and the other Lender Parties a party
thereto (the “Fourth Amendment”), the Credit Agreement was amended in order to
(i) temporarily increase the Revolving Loan Commitment to up to $27,000,000.00,
and (ii) increase the Letter of Credit Commitment to up to $1,500,000.00; and

 

WHEREAS, pursuant to that certain Fifth Amendment to Credit Agreement dated as
of May 22, 2004, among Borrowers, Agent, and the other Lender Parties a party
thereto (the “Fifth Amendment”), the Credit Agreement was amended in order to,
among other things, extend the Treasury Stock Loan Advancement Termination Date
from May 22, 2004 to May 22, 2005;

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WHEREAS, pursuant to that certain Sixth Amendment to Credit Agreement dated as
of August 1, 2004, among Borrowers, Agent, and the other Lender Parties a party
thereto (the “Sixth Amendment”), the Credit Agreement was amended in order to
extend until December 31, 2004 the temporary increase of the Revolving Loan
Commitment to up to $27,000,000.00; and

 

WHEREAS, pursuant to that certain Seventh Amendment to Credit Agreement dated as
of November 5, 2004, among Borrowers, Agent, and the other Lender Parties a
party thereto (the “Seventh Amendment”), the Credit Agreement was amended in
order to, among other things, temporarily increase the Revolving Loan Commitment
to up to $33,000,000.00; and

 

WHEREAS, pursuant to that certain Eighth Amendment to Credit Agreement dated as
of December 22, 2004, among Borrowers, Agent, and the other Lender Parties a
party thereto (the “Eighth Amendment”), the Credit Agreement was amended in
order to, among other things, (i) extend until April 30, 2005 the temporary
increase of the Revolving Loan Commitment to up to $33,000,000.00, and (ii)
extend the Revolving Loan Maturity Date from December 16, 2005 until April 30,
2006; and

 

WHEREAS, pursuant to that certain Ninth Amendment to Credit Agreement dated as
of March 31, 2005, among Borrowers, Agent, and the other Lender Parties a party
thereto (the “Ninth Amendment”), the Credit Agreement was amended in order to,
among other things, amend certain of the financial covenants set forth therein
(the Credit Agreement, as amended by the First Amendment, the Second Amendment,
the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth
Amendment, the Seventh Amendment, the Eighth Amendment and the Ninth Amendment,
hereinafter referred to as the “Credit Agreement, as amended”); and

 

WHEREAS, Lender Parties and Borrowers have agreed to amend the Credit Agreement,
as amended, in order to (i) extend until June 30, 2005 the temporary increase of
the Revolving Loan Commitment to up to $33,000,000.00, and (ii) amend the
repayment terms of the Treasury Stock Loan, all as more specifically hereinafter
provided.

 

NOW, THEREFORE, in consideration of One Dollar ($1.00) and other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties agree that the Credit Agreement, as amended, is hereby
amended, effective as of the date of this Tenth Amendment, as follows:

 

1. The Credit Agreement, as amended, is hereby amended by deleting the
definition of “Revolving Loan Commitment”, and by substituting the following new
definition in lieu thereof:

 

“Revolving Loan Commitment” means the commitment of the Revolving Loan Lenders,
subject to the terms of this Agreement, to lend Borrowers up to (A) from
December 31, 2004 to June 30, 2005, the lesser of (i) Thirty-Three Million and
No/100 Dollars ($33,000,000.00), or (ii) the Borrowing Base, less the Available
Amount of the Letters of Credit, less any outstanding Letter of Credit Advances;
and (B) thereafter, the lesser of (i) Twenty-Five Million and No/100 Dollars
($25,000,000.00), or (ii) the Borrowing Base, less the Available Amount of the
Letters of Credit, less any outstanding Letter of Credit Advances.

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2. The Credit Agreement, as amended, is hereby amended by deleting Section 4A.5
in its entirety, and by substituting the following new Section 4A.5 in lieu
thereof:

 

4A.5 Payments of Principal and Interest. Principal and interest on the Treasury
Stock Loan shall be payable as follows:

 

(A) On the first Payment Due Date following the date of the Treasury Stock
Notes, and on each successive Payment Due Date thereafter through and including
May 30, 2005, Borrowers shall pay to Agent for the account of the Treasury Stock
Loan Lenders (based on each Treasury Stock Loan Lender’s Pro Rata Share of the
Treasury Stock Loan Commitment at such time) all accrued and unpaid interest on
the outstanding principal balance of the Treasury Stock Notes.

 

(B) On June 30, 2005 and on each successive Payment Due Date thereafter until
the entire indebtedness evidenced by the Treasury Stock Notes is paid in full,
Borrowers shall pay to Agent for the account of the Treasury Stock Loan Lenders
(based on each Treasury Stock Loan Lender’s Pro Rata Share of the Treasury Stock
Loan Commitment at such time) (i) a principal payment equal to the outstanding
principal balance of the Treasury Stock Loan as of May 30, 2005, divided by
thirty (30) (viz., the number of payments to be made between June 30, 2005 and
the Treasury Stock Loan Maturity Date), plus (ii) all accrued and unpaid
interest thereon.

 

(C) If not earlier demanded pursuant to Section 11.3 hereof, the outstanding
principal balance of the Treasury Stock Loan, together with all accrued and
unpaid interest thereon, shall be due and payable to Agent for the account of
the Treasury Stock Loan Lenders (based on each Treasury Stock Loan Lender’s Pro
Rata Share at such time) on the Treasury Stock Loan Maturity Date.

 

3. As a condition to the effectiveness of this Tenth Amendment (a) Agent shall
have received appropriate resolutions of Borrowers’ directors, in a form
satisfactory to Agent, authorizing Borrowers to enter into this Tenth Amendment
and any other documentation required by Agent in connection with this Tenth
Amendment; (b) Agent shall have received a Bringdown and Incumbency Certificate
of each Borrower, in a form satisfactory to Agent; (c) Borrowers shall have
executed and delivered to Agent all further documents and performed all other
acts which Agent reasonably deems necessary or appropriate to perfect or protect
its security for the Loans; and (d) Borrowers shall have delivered to Agent such
other documentation, if any, as may be requested by Agent to satisfy Agent that
this Tenth Amendment, and all other documents and instruments executed by
Borrowers in connection with this Tenth Amendment or in furtherance hereof have
each been duly authorized, executed and delivered on behalf of Borrowers, and
constitute valid and binding obligations of Borrowers.

 

4. Each Borrower represents and warrants to Lender Parties that all
representations and warranties given by such Borrower in Article IX of the
Credit Agreement, as amended, are

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true and correct as of the date of this Tenth Amendment, except to the extent
affected by this Tenth Amendment. Each Borrower represents and warrants to
Lender Parties that as of the date of this Tenth Amendment, such Borrower is in
full compliance with all of the covenants of such Borrower contained in Article
X of the Credit Agreement, as amended, except to the extent affected by this
Tenth Amendment.

 

5. Except as heretofore or herein expressly modified, or as may otherwise be
inconsistent with the terms of this Tenth Amendment (in which case the terms and
conditions of this Tenth Amendment shall govern), all terms of the Credit
Agreement, as amended, and all documents and instruments executed and delivered
in furtherance thereof shall be and remain in full force and effect, and the
same are hereby ratified and confirmed in all respects.

 

* * * * *

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IN WITNESS WHEREOF, this Tenth Amendment has been duly executed as of the day
and year first above written.

 

WITNESS:       BORROWERS:         PEMCO AVIATION GROUP, INC.

/s/ Doris Sewell

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  By:  

/s/ John R. Lee

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Print Name:  

Doris Sewell

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  Its:  

Senior Vice President & Chief Financial Officer

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        PEMCO AEROPLEX, INC.

/s/ Doris Sewell

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  By:  

/s/ John R. Lee

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Print Name:  

Doris Sewell

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  Its:  

Chief Financial Officer

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        PEMCO ENGINEERS, INC.

/s/ Doris Sewell

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  By:  

/s/ John R. Lee

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Print Name:  

Doris Sewell

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  Its:  

Chief Financial Officer

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        PEMCO WORLD AIR SERVICES, INC.

/s/ Doris Sewell

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  By:  

/s/ John R. Lee

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Print Name:  

Doris Sewell

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  Its:  

Chief Financial Officer

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        SPACE VECTOR CORPORATION

/s/ Doris Sewell

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  By:  

/s/ John R. Lee

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Print Name:  

Doris Sewell

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  Its:  

Chief Financial Officer

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        AGENT:         WACHOVIA BANK, NATIONAL         ASSOCIATION, as Agent

/s/ W. Spencer Ragland

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  By:  

/s/ Austin Davis

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Print Name:  

W. Spencer Ragland

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  Its:  

Vice President

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        LENDERS:         WACHOVIA BANK, NATIONAL         ASSOCIATION

/s/ W. Spencer Ragland

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  By:  

/s/ Austin Davis

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Print Name:  

W. Spencer Ragland

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  Its:  

Vice President

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        COMPASS BANK

/s/ Sherry Driggers

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  By:  

/s/ Alex Morton

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Print Name:  

Sherry Driggers

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  Its:  

SeniorVice President

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