Exhibit 10.53

 

TENTH AMENDMENT TO CREDIT AGREEMENT

 

This TENTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made as of the
10th day of November, 2004 by and among CECO GROUP, INC., CECO FILTERS, INC.,
AIR PURATOR CORPORATION, NEW BUSCH CO., INC., THE KIRK & BLUM MANUFACTURING
COMPANY, KBD/TECHNIC, INC. and CECO ABATEMENT SYSTEMS, INC. (the “Borrowers”),
and FIFTH THIRD BANK (“Fifth Third”), individually and as agent (in such
capacity, the “Agent”) and PNC BANK, NATIONAL ASSOCIATION (“PNC”) individually,
and BANK ONE, NA (“Bank One”), individually (PNC, Fifth Third and Bank One, and
their respective successors and assigns, collectively, the “Banks”).

 

BACKGROUND

 

A. PNC (then as Agent) the Banks and the Borrowers are parties to a Credit
Agreement dated as of December 7, 1999 (“Credit Agreement”) as amended by
Amendment to Credit Agreement, dated as of March 28, 2000, by Second Amendment
to Credit Agreement dated as of November 10, 2000, by Third Amendment to Credit
Agreement dated as of March 30, 2001, by Fourth Amendment to Credit Agreement
dated as of August 20, 2001, by Fifth Amendment to Credit Agreement dated as of
March 27, 2002, by Sixth Amendment to Credit Agreement dated as of May 14, 2002,
by Seventh Amendment to Credit Agreement dated as of November 13, 2002 and by
Eighth Amendment to Credit Agreement dated as of November 13, 2003.

 

B. The Banks by separate Intercreditor Agreement, dated as of November 13, 2003
(“Intercreditor Agreement”), agreed to modify their positions so that from and
after that date Fifth Third was solely responsible for the Revolving Credit
Commitment and had no interest in the Term Loans (then and now, only Term Loan
A) and PNC and Bank One owned, on an equal basis, the Term Loan and Fifth Third
Bank became Agent for all purposes under the Credit Agreement, except for being
the mortgagee, pledgee or secured party under existing mortgages, pledges or
security agreements, given to secure the Loans made pursuant to the Amended
Credit Agreement, for which purpose PNC remains agent for the Banks.

 

C. Fifth Third (as Agent), the Banks and Borrowers further amended the Credit
Agreement by Ninth Amendment to Credit Agreement dated as of June 29, 2004 (the
Credit Agreement as amended as set forth in Recital A and this Recital C, the
“Amended Credit Agreement”).

 

D. Borrowers and Guarantors wish to amend the Amended Credit Agreement on the
terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing and for good and valuable
consideration, the legality and sufficiency of which are hereby acknowledged,
the parties hereto, intending to be legally bound, hereby agree as follows:

 

1. Definitions. Capitalized terms used herein and not otherwise defined herein
shall have the meanings assigned to them in the Amended Credit Agreement.

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2. Waiver. The Banks hereby waive the requirement that the Borrowers comply with
the Leverage Ratio as provided in Section 6.1(a) of the Credit Agreement, as
modified in paragraph 2(m) of the Third Amendment to Credit Agreement, paragraph
2(h) of the Fourth Amendment to Credit Agreement, paragraph 2(a) of the Fifth
Amendment to Credit Agreement, paragraph 2(a) of the Sixth Amendment to Credit
Agreement, paragraph 2(b) of the Seventh Amendment to Credit Agreement and
paragraph 2(b) of the Eighth Amendment to Credit Agreement, as of the last day
of September, 2004. The Banks hereby waive the requirement that the Borrowers
comply with the Interest Coverage Ratio as provided in Section 6.1(c) of the
Credit Agreement, as modified in paragraph 2(o) of the Third Amendment to Credit
Agreement, paragraph 2(j) of the Fourth Amendment to Credit Agreement, paragraph
2(b) of the Fifth Amendment to Credit Agreement, paragraph 2(c) of the Sixth
Amendment to Credit Agreement, paragraph 2(d) of the Seventh Amendment to Credit
Agreement and paragraph 2(f) of the Eight Amendment to Credit Agreement, as of
the last day of September, 2004. The foregoing waivers shall not waive the
Borrowers obligations to comply with such Leverage Ratio and such Interest
Coverage Ratio on any other date or any other obligation of Borrowers under the
Amended Credit Agreement.

 

3. Amendments to Credit Agreement.

 

(a) The definition of “Revolving Credit Commitment” as set forth in Section 1.1
of the Credit Agreement and revised in paragraph 2(c) of the Third Amendment to
Credit Agreement and paragraph 2(a) of the Fourth Amendment to Credit Agreement
shall be deleted and shall be replaced with the following:

 

“Revolving Credit Commitment”: means $10,000,000, as reduced from time to time
pursuant to Section 2.9.

 

(b) The definition of “Revolving Credit Note” as set forth in Section 1.1 of the
Credit Agreement shall be deleted and shall be replaced with the following:

 

“Revolving Credit Note”: means the Amended and Restated Revolving Credit Note in
the form attached to the Tenth Amendment to Credit Agreement, as executed by the
Borrowers, to replace the prior three Revolving Credit Notes, one each to each
of the Banks in the maximum amount of $3,333,333.00 each.

 

(c) The definition of “Termination Date” as set forth in Section1.1 of the
Credit Agreement as revised in paragraph 2(b) of the Fourth Amendment to Credit
Agreement, paragraph 2(a) of the Seventh Amendment to Credit Agreement and
paragraph 2(b) of the Eight Amendment to Credit Agreement shall be deleted and
shall be replaced with the following:

 

“Termination Date”: January 1, 2006.

 

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4. Amended and Restated Revolving Credit Note. On even date herewith, Borrowers
shall execute and deliver to Fifth Third, the Amended and Restated Revolving
Credit Note in the form attached hereto (the “Replacement Note”). The parties
hereto agree that the Replacement Note replaces and restates the original three
Revolving Credit Notes, dated on or about December 7, 1999, each in the maximum
amount of $3,333,333.00, given by Borrowers (except CECO Abatement Systems, Inc.
who became a Borrower under such Notes pursuant to the terms of the Fourth
Amendment to Credit Agreement, dated as of August 20, 2001) to each of the Banks
to evidence the Revolving Credit Loan pursuant to the Amended Credit Agreement
and that the prior Revolving Credit Notes from Borrowers to PNC and Bank One
were assigned by PNC and Bank One to Fifth Third pursuant to the Intercreditor
Agreement, dated as of November 13, 2003. The parties hereto further agree that
the Replacement Note shall be treated as the Revolving Credit Note(s) and shall
evidence the Revolving Credit Loan(s) for all purposes of the Amended Credit
Agreement and shall be entitled to all collateral and security afforded the
prior Revolving Credit Notes for all purposes.

 

5. Consent of Banks. Bank One and PNC consent to the modifications in the
Amended Credit Agreement set forth in paragraph 3 above. Fifth Third continues
to be solely responsible for the Revolving Credit Commitment as provided in the
Intercreditor Agreement.

 

6. Extension Fees. Upon execution of this Amendment, Borrowers shall pay to: (i)
Fifth Third, a Waiver and Extension Fee in the amount of $10,000; (ii) PNC, a
Waiver Fee in the amount of $2,500; and (iii) Bank One, a Wavier Fee in the
amount of $2,500.

 

7. Amendment to the Loan Documents. All references to the Credit Agreement in
the Loan Documents and in any documents executed in connection therewith shall
be deemed to refer to the Credit Agreement as amended by this Amendment and all
prior amendments to the Credit Agreement.

 

8. Ratification of the Loan Documents. Notwithstanding anything to the contrary
herein contained or any claims of the parties to the contrary, the Agent, the
Banks and the Borrowers agree that the Loan Documents and each of the documents
executed in connection therewith are in full force and effect and each such
document shall remain in full force and effect, as further amended by this
Amendment, and each of the Borrowers hereby ratifies and confirms its
obligations thereunder.

 

9. Representations and Warranties.

 

(a) Each Borrower hereby certifies that (i) the representations and warranties
of such Borrower in the Credit Agreement as previously amended and as amended
herein, are true and correct in all material respects as of the date hereof, as
if made on the date hereof, provided that, for purposes of this Amendment, only:
(x) the representations and warranties made in Section 3.1(a) and (b) and 3.21
of the Amended Credit Agreement shall relate to the most recent financial
statements of the type referred to therein which have been given by the
Borrowers to the Banks (but the foregoing shall not be a waiver of any Default
or Event of

 

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Default based on any representation or warranty made by the Borrowers in the
Credit Agreement or any amendment thereof, prior to this Amendment, being untrue
at the time made, or for any breach of any covenant contained in the Credit
Agreement, as amended prior to the date of this Amendment); (y) the
representations and warranties made in Section 3.1(c) of the Amended Credit
Agreement shall be made as of the date of this Amendment and not as of the
Closing Date; and (z) the representations and warranties made in Section 3.2 of
the Amended Credit Agreement shall refer to Material Adverse Effect since the
last audited consolidated financial statements of the Borrowers provided to the
Banks by the Borrowers, instead of since September 30, 1999 (but the foregoing
shall not be a waiver of any Default or Event of Default based on any
representation or warranty made by the Borrowers in the Credit Agreement or any
amendment thereof, prior to this Amendment, being untrue at the time made, or
for any breach of any covenant contained in the Credit Agreement, as amended
prior to the date of this Amendment); and (ii) no Event of Default and no event
which could become an Event of Default with the passage of time or the giving of
notice, or both, under the Credit Agreement or the other Loan Documents exists
on the date hereof.

 

(b) Each Borrower further represents that it has all the requisite power and
authority to enter into and to perform its obligations under this Amendment, and
that the execution, delivery and performance of this Amendment have been duly
authorized by all requisite action and will not violate or constitute a default
under any provision of any applicable law, rule, regulation, order, writ,
judgment, injunction, decree, determination or award presently in effect or of
the Articles of Incorporation or by-laws of such Borrower, or of any indenture,
note, loan or credit agreement, license or any other agreement, lease or
instrument to which such Borrower is a party or by which such Borrower or any of
its properties are bound.

 

(c) Each Borrower also further represents that its obligation to repay the
Loans, together with all interest accrued thereon, is absolute and
unconditional, and there exists no right of set off or recoupment, counterclaim
or defense of any nature whatsoever to payment of the Loans, and each Borrower
further represents that the Agents and Banks have fully performed all of their
respective obligations under the Loan Documents through the date of this
Amendment.

 

(d) Each Borrower also further represents that there have been no changes to the
Articles of Incorporation, by-laws or other organizational documents of each
such Borrower since the most recent date true and correct copies thereof were
delivered to the Agent.

 

10. Conditions Precedent. The effectiveness of the amendments and waivers set
forth herein are subject to the fulfillment, to the satisfaction of the Banks
and their counsel, of the following conditions precedent:

 

(a) The Borrowers shall have delivered to the Banks the following, all of which
shall be in form and substance satisfactory to the Banks and shall be duly
completed and executed:

 

(i) This Amendment and the consents of the Guarantor and the Subordinated
Creditors as attached hereto;

 

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(ii) The Amended and Restated Revolving Credit Note in the form attached hereto;
and

 

(iii) Such additional documents, certificates and information as the Banks may
require pursuant to the terms hereof or otherwise reasonably request.

 

(b) After giving effect to the amendments and waivers contained herein, the
representations and warranties set forth in the Amended Credit Agreement shall
be true and correct on and as of the date hereof.

 

(c) After giving effect to the amendments and waivers contained herein, no Event
of Default hereunder, and no event which, with the passage of time or the giving
of notice, or both, would become such an Event of Default shall have occurred
and be continuing as of the date hereof.

 

(d) The Borrowers shall have paid the Waiver and Extension Fees which are due
upon execution of this Amendment as provided in paragraph 5 above and the
reasonable fees and disbursements of the Banks’ counsel incurred in connection
with this Amendment.

 

11. No Waiver. Except as expressly provided herein, this Amendment and anything
contained herein or provided for herein does not and shall not be deemed to
constitute a waiver by the Agent or the Banks of any Event of Default, or of any
event which with the passage of time or the giving of notice or both would
constitute an Event of Default, nor does it obligate the Agent or the Banks to
agree to any further modifications to the Amended Credit Agreement or any other
Loan Document or constitute a waiver of any of the Agent’s or the Banks’ other
rights or remedies.

 

12. Waiver and Release. The Borrowers each on behalf of themselves, their
agents, employees, officers, directors, successors and assigns, do hereby waive
and release Agent and Banks, their agents, employees, officers, directors,
affiliates, parents, successors and assigns, from any claims arising from or
related to administration of the Amended Credit Agreement and the Loan Documents
and any course of dealing among the parties not in compliance with those
agreements from the inception of the Credit Agreement whether known or unknown
through the date of execution and delivery of this Amendment.

 

13. Effective Date. The parties hereto agree that this Amendment shall for all
purposes be deemed to be effective as of the date set forth in the first
paragraph of this Amendment (the “effective date”) and for all purposes the
Amended Credit Agreement shall be deemed to have been amended as of such date to
reflect the amendments to the Credit Agreement set forth in herein, even though
this Amendment is executed after such date.

 

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the
day and year first above written.

 

CECO GROUP, INC.

By:

 

/s/ Marshall J. Morris

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Name:

 

Marshall J. Morris

Title:

 

Chief Financial Officer

CECO FILTERS, INC.

By:

 

/s/ Marshall J. Morris

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Name:

 

Marshall J. Morris

Title:

 

Treasurer

AIR PURATOR CORPORATION

By:

 

/s/ Marshall J. Morris

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Name:

 

Marshall J. Morris

Title:

 

President

NEW BUSCH CO., INC.

By:

 

/s/ Marshall J. Morris

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Name:

 

Marshall J. Morris

Title:

 

Treasurer

THE KIRK & BLUM MANUFACTURING

COMPANY

By:

 

/s/ Marshall J. Morris

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Name:

 

Marshall J. Morris

Title:

 

Treasurer

 

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KBD/TECHNIC, INC.

By:

 

/s/ Marshall J. Morris

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Name:

 

Marshall J. Morris

Title:

 

Treasurer :

CECO ABATEMENT SYSTEMS, INC.

By:

 

/s/ Marshall J. Morris

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Name:

 

Marshall J. Morris

Title:

 

Treasurer

PNC BANK, NATIONAL ASSOCIATION, as

Agent and as a Bank

By:

 

/s/ William C. Miles

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Name:

 

William C. Miles

Title:

 

Vice President

FIFTH THIRD BANK, as a Bank

By:

 

/s/ David G. Fuller

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Name:

 

David G. Fuller

Title:

 

Vice President

BANK ONE, NA, as a Bank

By:

 

/s/ Jeffrey C. Nicholson

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Name:

 

Jeffrey C. Nicholson

Title:

 

First Vice President

 

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