exv10w20



 




Exhibit 10.20



KEYBANK NATIONAL ASSOCIATION




FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT LOAN AND SECURITY AGREEMENT




     This First Amendment to Second Amended and Restated Revolving Credit Loan and Security
Agreement (“Amendment”) is entered into as of the 25th   day of March, 2005, by
and among KEYBANK NATIONAL ASSOCIATION (“Bank”) and BROOKWOOD COMPANIES INCORPORATED (“Brookwood”),
KENYON INDUSTRIES, INC. (“Kenyon”), BROOKWOOD LAMINATING, INC. (“Laminating”), ASHFORD BROMLEY,
INC. (“Ashford”), XTRAMILE, INC. (“Xtra”), LAND AND OCEAN III, INC. (“Land”), and STRATEGIC
TECHNICAL ALLIANCE, LLC (“STA”, and together with Brookwood, Kenyon, Laminating, Ashford, Xtra and
Land, hereinafter individually and collectively referred to as “Borrower”).



RECITALS:




     WHEREAS, Bank and Borrower are parties to that certain Second Amended and Restated Revolving
Credit Loan and Security Agreement dated as of January 30, 2004 (“Loan Agreement”); and



     WHEREAS, Bank and Borrower desire to amend the Loan Agreement in the manner hereinafter set
forth;



     NOW, THEREFORE, in consideration of the mutual agreements hereinafter set forth, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree that the Loan Agreement is amended as follows:



     1. Definitions. Unless otherwise defined herein, capitalized terms used herein shall
have the meanings ascribed to them in the Loan Agreement.



     2. Elimination of Borrowing Base. Bank has agreed that advances under the Working
Capital Revolving Credit Facility shall no longer be limited by and subject to a Borrowing Base
and, therefore, Section 2.1.8 of the Loan Agreement is hereby deleted in its entirety.



     3. Elimination of Semi-Annual Field Exams; Waiver of Default. In connection with the
elimination of the Borrowing Base, semi-annual field exams shall no longer be required and,
therefore, Section 5.6 of the Loan Agreement is hereby deleted in its entirety. Additionally, Bank
waives any default concerning any field exams not completed prior to the date of this Amendment.



     4. Elimination of EBITDA to TFC Ratio. Bank has agreed to eliminate the requirement
of the EBITDA to TFC Ratio and, therefore, Section 9.1 of the Loan Agreement is hereby deleted in
its entirety. Bank reserves the right to reinstate this ratio in conjunction with any additional
long-term debt financings, excluding equipment financing under the Equipment Revolving Credit
Facility.



 









 





     5. Total Debt to Tangible Net Worth Ratio. Section 9.2 of the Loan Agreement is
hereby deleted in its entirety and replaced with the following:




9.2 Total Debt to Tangible Net Worth Ratio. Borrower shall
maintain a ratio of Total Debt to Tangible Net Worth Ratio of not more than
1.50:1.00, calculated at the end of each fiscal quarter beginning with the
period ended March 31, 2005.



     6. Minimum Net Income. Bank and Borrower agree that a new Financial Covenant, Minimum
Net Income from Operations, shall be instituted and tested quarterly, on a fully-consolidated basis
as follows:




9.3 Minimum Net Income from Operations. Borrower shall maintain a
Minimum Net Income of not less than $1.00 beginning with the period ended
March 31, 2005 and quarterly thereafter.



     7. Effective Date. This Amendment shall be become effective as of the date hereof.



     8. Representations and Warranties; No Default. Borrower hereby ratifies and confirms
to the Bank that all representations and warranties set forth in the Loan Agreement are true,
complete and correct in all material respects as of the date hereof as if set forth herein in full
(except as to representations and warranties made as of a certain date which shall be true,
complete and correct only as of such date) and apply with equal force and effect to this Amendment.
Borrower hereby certifies that, after giving effect hereto, no Default or Event of Default exists
under the Loan Agreement.



     9. Miscellaneous.



            (a) Borrower agrees to pay on demand all of the Bank’s reasonable expenses in preparing,
executing and delivering this Amendment, and all related instruments and documents, including,
without limitation, the reasonable fees and out-of-pocket expenses of the Bank’s special counsel,
PretiFlaherty. Borrower agrees to indemnify and hold harmless the Bank (and its directors,
officers, employees and agents) against any damages, loss, liability, and reasonable costs or
expenses incurred with respect to the financing contemplated hereby or the use or proposed use of
the proceeds thereof (except to the extent resulting from the gross negligence or willful
misconduct of the Bank).



            (b) Borrower acknowledges and agrees that: (i) it has no claim or cause of action against the
Bank (or its directors, officers, employees, agents, representatives, affiliates or attorneys);
(ii) it has no offset right, right of recoupment, counterclaim or defense of any kind against any
of the Obligations or any other obligation or indebtedness of Borrower to the Bank; and (iii) Bank
has heretofore properly performed and satisfied in a timely manner all of its obligations to
Borrower.



            (c) For and in consideration of the agreements contained in the Loan Agreement, as amended
hereby, and other good and valuable consideration, Borrower unconditionally and irrevocably
releases, waives and forever discharges the Bank, together with



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its successors, assigns, subsidiaries, affiliates, directors, officers, employees, agents and
attorneys (collectively, the “Released Parties”), from: (i) any and all liabilities, obligations,
duties, promises or indebtedness of any kind of the Released Parties to Borrower as a result of any
matter occurring on or prior to the date hereof, provided that the Bank shall continue to be bound
by its express obligations under the Loan Agreement, as amended hereby, in accordance with the
terms hereof and thereof, and (ii) all claims, offsets, rights of recoupment, causes of action,
suits or defenses of any kind whatsoever (if any), which Borrower might otherwise have against the
Released Parties or any of them, in either case (i) or (ii) on account of any condition, act,
omission, event, contract, liability, obligations, indebtedness, claim, cause of action, defense,
circumstance, or matter of any kind.




            (d) Except as expressly amended by this Amendment, all of the remaining terms and conditions
of the Loan Agreement shall continue in full force and effect and are hereby ratified and confirmed
by Borrower, and Borrower ratifies and confirms its prior grant and conveyance and grants and
conveys, to the extent not previously granted and conveyed, to the Bank a security interest in the
Collateral as defined and described in the Loan Documents.



            (e) In the event of a conflict between the terms and conditions of this Amendment and the
terms and conditions of the Loan Agreement, the terms and conditions of this Amendment shall
prevail and the Loan Agreement shall be interpreted and construed so as to give maximum effect to
the purpose and intent of this Amendment.



            (f) This Amendment shall be governed by and construed and enforced in accordance with the laws
of the State of Maine.



     10. Fee. In consideration of Bank’s agreement to execute this Amendment, Borrower
agrees to pay a fee of $15,000.00 which is due and payable upon the execution of this Amendment.



     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as a sealed
instrument by their duly authorized officers as of the date first set forth above.


	 	 	 	 	 
	 	BANK:

KEYBANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/   Eric M. Nygren
 	 
	 	 	Name:  	Eric M. Nygren	 
	 	 	Title:  	Vice President 	 
	 



	 	 	 	 	 
	 	BORROWER:

BROOKWOOD COMPANIES INCORPORATED

 	 
	 	By:  	/s/   Ronald E. Kaplan
 	 
	 	 	Name:  	Ronald E. Kaplan 	 
	 	 	Title:  	Chief Financial Officer 	 
	 





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	 	KENYON INDUSTRIES, INC.

 	 
	 	By:  	/s/   Ronald E. Kaplan
 	 
	 	 	Name:  	Ronald E. Kaplan 	 
	 	 	Title:  	Chief Financial Officer 	 
	 



	 	 	 	 	 
	 	BROOKWOOD LAMINATING, INC.

 	 
	 	By:  	/s/   Ronald E. Kaplan
 	 
	 	 	Name:  	Ronald E. Kaplan 	 
	 	 	Title:  	Chief Financial Officer 	 
	 



	 	 	 	 	 
	 	ASHFORD BROMLEY, INC.

 	 
	 	By:  	/s/   Ronald E. Kaplan
 	 
	 	 	Name:  	Ronald E. Kaplan 	 
	 	 	Title:  	Chief Financial Officer 	 
	 



	 	 	 	 	 
	 	XTRAMILE, INC.

 	 
	 	By:  	/s/   Ronald E. Kaplan
 	 
	 	 	Name:  	Ronald E. Kaplan 	 
	 	 	Title:  	Treasurer 	 
	 



	 	 	 	 	 
	 	LAND AND OCEAN III, INC.

 	 
	 	By:  	/s/   Ronald E. Kaplan
 	 
	 	 	Name:  	Ronald E. Kaplan 	 
	 	 	Title:  	Assistant Treasurer 	 
	 



	 	 	 	 	 
	 	STRATEGIC TECHNICAL ALLIANCE, LLC	 
	 	By:  	Brookwood Companies Incorporated,
 	 
	 	 	Its Sole Member 	 
	 	 	 	 



	 	 	 	 	 
	 	By:  	            /s/   Ronald E. Kaplan
 	 
	 	 	Name:  	Ronald E. Kaplan 	 
	 	 	Title:  	Chief Financial Officer 	 
	 




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