Exhibit 10.1

 

EXECUTION COPY

 

AMENDMENT NO.3 TO THE

 

FIRST LIEN SENIOR SECURED CREDIT AGREEMENT

 

Dated as of February 19, 2008

 

among

 

WII MERGER CORPORATION,
as the initial Borrower,

 

CREDIT SUISSE,
as Administrative Agent, Swing Line Lender and
an L/C Issuer,

 

The Other Lenders Parties Hereto

 

and

 

 

CREDIT SUISSE,
as Collateral Agent

 

 

 

CREDIT SUISSE SECURITIES (USA) LLC

 

Sole Lead Arranger and Sole Bookrunning Manager

 

 

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AMENDMENT NO.  3 TO THE
CREDIT AGREEMENT

 

Dated as of February 19, 2008

 

AMENDMENT NO. 3 TO THE CREDIT AGREEMENT  (this “Amendment”) among WII
COMPONENTS, INC., a Delaware corporation (the “Borrower”), the Lenders party
thereto and CREDIT SUISSE, acting through one or more of its branches, or any
Affiliate thereof (collectively, “Credit Suisse”), as Administrative Agent,
Swing Line Lender, an L/C Issuer and Collateral Agent.

 

PRELIMINARY STATEMENTS:

 

(1)           WII Merger Corporation and Credit Suisse entered into a Credit
Agreement dated as of January 9, 2007, as amended by Amendment No. 1 dated as of
February 7, 2007 and Amendment No. 2 dated as of June 12, 2007 (as so amended,
the “Credit Agreement”).  Capitalized terms not otherwise defined in this
Amendment have the same meanings as specified in the Credit Agreement.

 

(2)           Pursuant to the Merger and the Assumption Agreement, the Borrower
assumed all of the obligations of WII Merger Corporation under the Loan
Documents.

 

(3)           The Borrower has requested that the Required Lenders agree to
amend certain provisions of the Credit Agreement as described herein.

 

(4)           The Required Lenders have agreed, subject to the terms and
conditions stated below, to amend the Credit Agreement as hereinafter set forth.

 

SECTION 1.           Amendments to Credit Agreement.  The Credit Agreement is,
effective as of the date hereof and subject to the satisfaction of the
conditions precedent set forth in Section 2, hereby amended as follows:

 

(A)           THE DEFINITION OF “APPLICABLE MARGIN” IN SECTION 1.01 IS HEREBY
AMENDED BY (I) DELETING THE FIGURE “2.75%” IN CLAUSE (A) THEREOF AND REPLACING
IT WITH THE FIGURE “3.75%”, (II) DELETING THE FIGURE “1.75%” IN CLAUSE
(B) THEREOF AND REPLACING IT WITH THE FIGURE “2.75%” AND (III) RESTATING THE
PRICING GRID IN ITS ENTIRETY TO READ AS FOLLOWS:

 

Pricing Level

 

Consolidated Leverage Ratio

 

Eurodollar Loans

 

Base Rate Loans

 

I

 

Greater than or equal to 4.00:1.00

 

3.75%

 

2.75%

 

II

 

Less than 4.00:1.00 and greater than or equal to 3.00:1.00

 

3.50%

 

2.50%

 

III

 

Less than 3.00:1.00

 

3.25%

 

2.25%

 

 

(B)           SECTION 2.09(A) IS HEREBY AMENDED BY DELETING THE FIGURE “0.5%” IN
THE FIRST SENTENCE THEREOF AND REPLACING IT WITH THE FIGURE “1.0%”.

 

(C)           SECTION 7.02(A)(II) IS HEREBY AMENDED BY DELETING THE DATE
“MARCH 31, 2008” APPEARING THEREIN AND REPLACING IT WITH THE DATE “MARCH 31,
2009”.

 

(D)           SECTION 7.06(K) IS HEREBY AMENDED BY:

 

 

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(I)    DELETING THE DATE “MARCH 31, 2008” APPEARING THEREIN AND REPLACING IT
WITH THE DATE “MARCH 31, 2009”;

 

(II)   INSERTING THE FOLLOWING BEFORE THE WORDS “THE ACQUISITION LOAN” IN THE
FOURTH LINE THEREOF:  “OR, DURING THE FISCAL QUARTER ENDING MARCH 31, 2008, CASH
PAYMENTS OF PRINCIPAL ON”; AND

 

(III)  INSERTING THE FOLLOWING AT THE END OF CLAUSE (II) THEREOF:  “PLUS, DURING
THE FISCAL QUARTER ENDING MARCH 31, 2008, AN AMOUNT NOT TO EXCEED $3,600,000 IN
RESPECT OF CASH PAYMENTS OF PRINCIPAL ON THE ACQUISITION LOAN”.

 

(E)           THE GRID IN SECTION 7.11(A)(I) IS HEREBY AMENDED TO READ AS
FOLLOWS:

 

Four Fiscal Quarters Ending

 

Maximum Consolidated Leverage Ratio

 

March 31, 2007 through September 30, 2007

 

6.50:1.00

 

December 31, 2007

 

6.90:1.00

 

March 31, 2008 through March 31, 2010

 

7.80:1.00

 

June 30, 2010 through December 31, 2011

 

6.00:1.00

 

March 31, 2012

 

4.20:1.00

 

June 30, 2012

 

4.00:1.00

 

September 30, 2012

 

3.90:1.00

 

December 31, 2012

 

3.80:1.00

 

 

(F)            THE GRID IN SECTION 7.11(C)(I) IS HEREBY AMENDED TO READ AS
FOLLOWS:

 

Four Fiscal Quarters Ending

 

Minimum Consolidated Interest Coverage Ratio

 

March 31, 2007 through September 30, 2007

 

2.50:1.00

 

December 31, 2007

 

2.60:1.00

 

March 31, 2008 through March 31, 2010

 

1.90:1.00

 

June 30, 2010

 

3.70:1.00

 

September 30, 2010 through December 31, 2010

 

3.80:1.00

 

March 31, 2011

 

3.90:1.00

 

June 30, 2011

 

4.00:1.00

 

September 30, 2011 through December 31, 2011

 

4.10:1.00

 

March 31, 2012

 

4.70:1.00

 

June 30, 2012

 

5.40:1.00

 

September 30, 2012

 

6.20:1.00

 

December 31, 2012

 

7.10:1.00

 

 

(G)           SECTION 7.15(A)(IV) IS HEREBY AMENDED BY INSERTING AT THE END
THEREOF “OR CASH PAYMENTS OF PRINCIPAL ON THE ACQUISITION LOAN PERMITTED UNDER
SECTION 7.06(K)”.

 

(H)           SECTION 8.01(O) IS HEREBY AMENDED BY DELETING THE DATE “MARCH 31,
2008” APPEARING THEREIN AND REPLACING IT WITH THE DATE “MARCH 31, 2009”.

 

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SECTION 2.           Conditions of Effectiveness.  This Amendment shall become
effective as of the date first above written when, and only when,

 

(A)           THE ADMINISTRATIVE AGENT SHALL HAVE RECEIVED COUNTERPARTS OF THIS
AMENDMENT EXECUTED BY EACH LOAN PARTY AND THE REQUIRED LENDERS;

 

(B)           THE ADMINISTRATIVE AGENT SHALL HAVE RECEIVED, IN FORM AND
SUBSTANCE SATISFACTORY TO THE ADMINISTRATIVE AGENT:

 

(I)   A CERTIFICATE SIGNED BY A DULY AUTHORIZED OFFICER OF THE BORROWER STATING
THAT (A) THE REPRESENTATIONS AND WARRANTIES CONTAINED IN ARTICLE V OF THE CREDIT
AGREEMENT ARE TRUE AND CORRECT IN ALL MATERIAL RESPECTS ON AND AS OF THE DATE OF
SUCH CERTIFICATE AS THOUGH MADE ON AND AS OF SUCH DATE OTHER THAN ANY SUCH
REPRESENTATIONS OR WARRANTIES THAT, BY THEIR TERMS, REFER TO A DATE OTHER THAN
THE DATE OF SUCH CERTIFICATE, AND (B) NO EVENT HAS OCCURRED AND IS CONTINUING
THAT CONSTITUTES A DEFAULT; AND

 

(II)  A CERTIFICATE OF THE SECRETARY OR AN ASSISTANT SECRETARY OF EACH LOAN
PARTY CERTIFYING THAT THE CERTIFIED RESOLUTIONS OF THE BOARD OF DIRECTORS (OR
SIMILAR GOVERNING BODY) OF EACH LOAN PARTY DELIVERED IN CONNECTION WITH THE
CREDIT AGREEMENT HAVE NOT BEEN AMENDED, MODIFIED OR REVOKED AND ARE IN FULL
FORCE AND EFFECT ON THE DATE HEREOF; AND

 

(C)           ALL EXPENSES OF THE ADMINISTRATIVE AGENT (INCLUDING ALL REASONABLE
FEES AND EXPENSES OF COUNSEL TO THE ADMINISTRATIVE AGENT), TO THE EXTENT
INVOICED AND DUE PRIOR TO THE DATE HEREOF, SHALL HAVE BEEN PAID.

 

SECTION 3.           Confirmation of Representations and Warranties.  Each of
the Loan Parties hereby represents and warrants, on and as of the date hereof,
that the representations and warranties contained in the Loan Documents are true
and correct in all material respects on and as of the date hereof, before and
after giving effect to this Amendment, as though made on and as of the date
hereof, other than any such representations or warranties that, by their terms,
refer to a specific date.

 

SECTION 4.           Affirmation of Guarantors.  Each Guarantor hereby consents
to the amendments to the Credit Agreement effected hereby, and hereby confirms
and agrees that, notwithstanding the effectiveness of this Amendment, the
obligations of such Guarantor contained in the Holdings Guaranty or the
Subsidiary Guaranty (as the case may be), or in any other Loan Document to which
it is a party are, and shall remain, in full force and effect and are hereby
ratified and confirmed in all respects, except as set forth in
Section 5(a) below.

 

SECTION 5.           Reference to and Effect on the Loan Documents.  (a)  On and
after the effectiveness of this Amendment, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import
referring to the Credit Agreement, and each reference in each of the other Loan
Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like
import referring to the Credit Agreement, shall mean and be a reference to the
Credit Agreement, as amended by this Amendment.

 

(B)  THE CREDIT AGREEMENT AND EACH OF THE OTHER LOAN DOCUMENTS, AS SPECIFICALLY
AMENDED BY THIS AMENDMENT, ARE AND SHALL CONTINUE TO BE IN FULL FORCE AND EFFECT
AND ARE HEREBY IN ALL RESPECTS RATIFIED AND CONFIRMED.

 

(C)  THE EXECUTION, DELIVERY AND EFFECTIVENESS OF THIS AMENDMENT SHALL NOT,
EXCEPT AS

 

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EXPRESSLY PROVIDED HEREIN, OPERATE AS A WAIVER OF ANY RIGHT, POWER OR REMEDY OF
ANY LENDER OR THE ADMINISTRATIVE AGENT UNDER THE CREDIT AGREEMENT, NOR
CONSTITUTE A WAIVER OF ANY PROVISION OF THE CREDIT AGREEMENT OR ANY OTHER LOAN
DOCUMENT.

 

SECTION 6.           Costs, Expenses.  The Borrower agrees to pay on demand all
costs and expenses of the Administrative Agent (including, without limitation,
the reasonable fees and expenses of counsel for the Administrative Agent) in
connection with the preparation, execution, delivery and administration,
modification and amendment of this Amendment and the other instruments and
documents to be delivered hereunder, in accordance with the terms of
Section 10.04 of the Credit Agreement.

 

SECTION 7.           Execution in Counterparts.  This Amendment may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute but one and the same
agreement.  Delivery of an executed counterpart of a signature page to this
Amendment by facsimile shall be effective as delivery of a manually executed
counterpart of this Amendment.

 

SECTION 8.           Governing Law.  This Amendment shall be governed by, and
construed in accordance with, the laws of the State of New York.

 

[The remainder of this page intentionally left blank.]

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
by their respective officers thereunto duly authorized, as of the date first
above written.

 

 

WII COMPONENTS, INC., as Borrower

 

 

 

 

By

/s/ Dale B. Herbst

 

Name:

Dale B. Herbst

 

Title:

CFO

 

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WII HOLDING, INC.,

 

as Guarantor

 

 

 

 

 

 

By

/s/ Dale B. Herbst

 

Name:

Dale B. Herbst

 

Title:

CFO

 

 

 

 

 

 

 

WOODCRAFT INDUSTRIES, INC.,

 

as Guarantor

 

 

 

 

 

 

By

/s/ Dale B. Herbst

 

Name:

Dale B. Herbst

 

Title:

CFO

 

 

 

 

 

 

 

BRENTWOOD ACQUISITION CORP.,

 

as Guarantor

 

 

 

 

 

 

By

/s/ Dale B. Herbst

 

Name:

Dale B. Herbst

 

Title:

CFO

 

 

 

 

 

 

 

PRIMEWOOD, INC.,

 

as Guarantor

 

 

 

 

 

 

By

/s/ Dale B. Herbst

 

Name:

Dale B. Herbst

 

Title:

CFO

 

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CREDIT SUISSE,

 

 

Cayman Islands Branch,

 

 

as Administrative Agent and Collateral Agent

 

 

 

 

 

 

 

By

/s/ Mikhail Faybusovich

 

Name:

Mikhail Faybusovich

 

Title:

Vice President

 

 

 

 

 

 

 

By

/s/ James Neira

 

Name:

James Neira

 

Title:

Associate

 

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CREDIT SUISSE,

 

 

Cayman Islands Branch,

 

 

as Lender

 

 

 

 

 

 

 

By

/s/ Mikhail Faybusovich

 

Name:

Mikhail Faybusovich

 

Title:

Vice President

 

 

 

 

 

 

 

By

/s/ James Neira

 

Name:

James Neira

 

Title:

Associate

 

 

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