EXHIBIT 10.63

 

FIRST AMENDMENT

 

TO FINANCING AGREEMENT

 

FIRST AMENDMENT, dated as of June 4, 2003 (this “Amendment”), to the Financing
Agreement, dated as of November 21, 2002 (as amended, restated or otherwise
modified from time to time, the “Financing Agreement”), by and among Columbus
McKinnon Limited, a Canadian corporation (“Columbus McKinnon”), Larco Industrial
Services Ltd., an Ontario corporation (“Larco” and together with Columbus
McKinnon, each a ”Borrower” and collectively, the “Borrowers”), the financial
institutions from time to time party hereto (each a “Lender” and collectively,
the ”Lenders”), and Regiment Capital III, L.P., a limited partnership, as agent
for the Lenders (in such capacity, the ”Agent”).

 

WHEREAS, the Borrowers, the Agent and the Lenders wish to amend certain terms
and conditions of the Financing Agreement as hereafter set forth;

 

NOW, THEREFORE, the Borrowers, the Agent and the Lenders hereby agree as
follows:

 

1. Capitalized Terms. All terms which are defined in the Financing Agreement and
not otherwise defined herein are used herein as defined therein.

 

2. Definitions. Section 1.01 of the Financing Agreement is hereby amended by
inserting the definition of the term “Applicable PIK Rate”, in appropriate
alphabetical order, to read as follows:

 

“‘Applicable PIK Rate’ means, as of any date of determination, a percentage
equal to (a) during the period of time from and after the Effective Date up to
May 1, 2003, 1.25% and (b) thereafter, 3.00%; provided, that if at any time
during the period from May 1, 2003 to December 31, 2003, the US Borrowers shall
have made payments in respect of the outstanding principal amount of the Working
Capital Term Loan or the US Term Loan (or any combination thereof) in an
aggregate amount set forth below, the Applicable PIK Rate otherwise applicable
pursuant to clause (b) above shall thereafter be reduced by the number of
percentage points opposite such amount:

 

Aggregate Payments

--------------------------------------------------------------------------------

  

Percentage Point Reduction

--------------------------------------------------------------------------------

In excess of $15,000,000 but

less than or equal to $30,000,000

   0.875 percentage points

In excess of $30,000,000

  

An additional 0.875

percentage points”

 

3. Interest. Section 2.04(a)(i) of the Financing Agreement is hereby amended by
deleting each reference to “1.25%” therein and substituting in lieu thereof “the
Applicable PIK Rate”.

--------------------------------------------------------------------------------

4. Conditions. This Amendment shall become effective only upon satisfaction in
full of the following conditions precedent (the first date upon which all such
conditions have been satisfied being herein called the “Amendment Effective
Date”):

 

(a) Representations and Warranties; No Event of Default. The representations and
warranties contained herein, in Section 6.01 of the Financing Agreement and in
each other Loan Document and certificate or other writing delivered to the Agent
and the Lenders pursuant hereto or thereto on or prior to the Amendment
Effective Date shall be true and correct on and as of the Amendment Effective
Date as though made on and as of such date; and no Default or Event of Default
shall have occurred and be continuing on the Amendment Effective Date or would
result from this Amendment becoming effective in accordance with its terms.

 

(b) Delivery of Documents. The Agent shall have received on or before the
Amendment Effective Date, counterparts of this Amendment, duly executed by the
Borrowers and the Lenders.

 

(c) Proceedings. All proceedings in connection with the transactions
contemplated by this Amendment, and all documents incidental hereto, shall be
satisfactory to the Agent and its counsel.

 

5. Representations and Warranties. Each Borrower represents and warrants as
follows:

 

(a) Each Borrower (i) is a corporation or limited liability company, as the case
may be, duly organized, validly existing and in good standing under the laws of
the state of its organization and (ii) has all requisite power, authority and
legal right to execute, deliver and perform this Amendment, and to perform the
Financing Agreement, as amended hereby.

 

(b) The execution, delivery and performance by each Borrower of this Amendment
and the performance by each Borrower of the Financing Agreement, as amended
hereby (i) have been duly authorized by all necessary action, (ii) do not and
will not violate or create a default under any such Person’s organizational
documents or any applicable law or any contractual restriction binding or
otherwise affecting any such Person or any of such Person’s properties, and
(iii) except as provided in the Loan Documents, do not and will not result in or
require the creation of any Lien upon or with respect to any of such Person’s
property.

 

(c) No authorization or approval or other action by, and no notice to or filing
with, any Governmental Authority or other regulatory body is required in
connection with (i) the due execution, delivery and performance by any Borrower
of this Amendment and (ii) the performance by any Borrower of the Financing
Agreement, as amended hereby.

 

(d) Each of this Amendment and the Financing Agreement, as amended hereby, is a
legal, valid and binding obligation of each Borrower, enforceable against each
such Person in accordance with the terms thereof.

 

(e) The representations and warranties contained in Article VI of the Financing
Agreement are true and correct on and as of the Amendment Effective Date as
though

 

2

--------------------------------------------------------------------------------

made on and as of the Amendment Effective Date, and no Default or Event of
Default has occurred and is continuing on and as of the Amendment Effective Date
or will result from this Amendment becoming effective in accordance with its
terms.

 

6. Continued Effectiveness of the Financing Agreement. (a) Each Borrower hereby
confirms and agrees that (i) each Loan Document to which it is a party is, and
shall continue to be, in full force and effect and is hereby ratified and
confirmed in all respects except that on and after the Amendment Effective Date
all references in any such Loan Document to “the Financing Agreement”,
“thereto”, “thereof”, “thereunder” or words of like import referring to the
Financing Agreement shall mean the Financing Agreement as amended by this
Amendment, and (ii) to the extent any such Loan Document purports to assign or
pledge to the Agent, or to grant to the Agent a Lien on any collateral as
security for the Obligations of the Borrowers from time to time existing in
respect of the Financing Agreement and the Loan Documents, such pledge,
assignment and/or grant of a Lien is hereby ratified and confirmed in all
respects.

 

(b) Each Borrower confirms and agrees that this Amendment shall constitute a
Loan Document under the Financing Agreement and further confirms and agrees that
any material misstatement or material omission of a representation or warranty
contained herein and any failure to perform or comply with any covenant or
agreement contained herein shall constitute an Event of Default under the
Financing Agreement.

 

7. Miscellaneous. (a) This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which shall be deemed to be an original, but all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of
this Amendment by telefacsimile shall be equally effective as delivery of an
original executed counterpart of this Amendment.

 

(b) Section and paragraph headings herein are included for convenience of
reference only and shall not constitute a part of this Amendment for any other
purpose.

 

(c) This Amendment shall be governed by, and construed in accordance with, the
laws of the State of New York.

 

(d) The Borrowers will pay on demand all reasonable fees, costs and expenses of
the Agent in connection with the preparation, execution and delivery of this
Amendment and all documents incidental hereto, including, without limitation,
the reasonable fees, disbursements and other charges of Schulte Roth & Zabel
LLP, counsel to the Agent.

 

(e) This Amendment is not a waiver of, or consent to, any Default or Event of
Default now existing or hereafter arising under the Financing Agreement or any
other Loan Document and the Agent and the Lenders expressly reserve all of their
rights and remedies under the Financing Agreement and the other Loan Documents,
under applicable law or otherwise.

 

3

--------------------------------------------------------------------------------

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.

 

BORROWERS: COLUMBUS MCKINNON LIMITED

    By:

 

/S/    ROBERT L. MONTGOMERY

--------------------------------------------------------------------------------

   

Name:  Robert L. Montgomery

Title:    Assistant Treasurer

 

LARCO INDUSTRIAL SERVICES LTD.

    By:

 

/S/    ROBERT L. MONTGOMERY

--------------------------------------------------------------------------------

   

Name:  Robert L. Montgomery

Title:    Treasurer

--------------------------------------------------------------------------------

AGENT AND LENDER: REGIMENT CAPITAL III, L.P.

By:

 

Regiment Capital Management, L.L.C.,

its General Partner

    By:  

Regiment Capital Advisors, LLC

its Manager

        By:  

/S/    RICHARD T. MILLER

--------------------------------------------------------------------------------

           

Name:  Richard T. Miller

           

Title:    Vice President

LENDERS: ABLECO FINANCE LLC

By:

 

/S/    KEVIN P. GENDA

--------------------------------------------------------------------------------

   

Name:  Kevin P. Genda

   

Title:    Senior Vice President

CITADEL EQUITY FUND LTD.

By:

 

Citadel Limited Partnership, its Portfolio

Manager,

    By:  

GLB Partners, L.P., its General Partner

        By:  

Citadel Investment Group, L.L.C.,

its General Partner

           

By:

 

/S/    LEVOYD E. ROBINSON

--------------------------------------------------------------------------------

               

Name: Levoyd E. Robinson

               

Title: Managing Director

CITADEL CREDIT TRADING LTD.

By:

  Citadel Limited Partnership, its Portfolio Manager,    

By:

 

GLB Partners, L.P., its General Partner

       

By:

  Citadel Investment Group, L.L.C., its General Partner             By:  

/S/    LEVOYD E. ROBINSON

--------------------------------------------------------------------------------

               

Name: Levoyd E. Robinson

               

Title: Managing Director