1st Amendment to the June 20, 2001 Note Agreement



 



EXHIBIT 4.1.1



First Amendment

To the June 1, 1994

Note Agreement

Dated February 28, 2003


BUTLER MANUFACTURING COMPANY


FIRST AMENDMENT

TO NOTE AGREEMENT


$35,000,000 Principal Amount

8.02% Senior Notes

Due December 30, 2003


Dated as of February 28, 2003



To the Holders of Senior Notes

of Butler Manufacturing Company

Named in the Attached Schedule I


Ladies and Gentlemen:


     Reference is made to the Note Agreement dated as of June 1, 1994 among
Butler Manufacturing Company (the “Company”) and the Purchasers named in
Schedule I thereto (as amended, the “Note Agreement”), pursuant to which the
Company issued $35,000,000 principal amount of its 8.02% Senior Notes due
December 30, 2003 (the “Notes You are referred to herein individually as a
“Holder” and collectively as the “Holders.” Capitalized terms used and not
otherwise defined herein shall have the meanings ascribed to them in the Note
Agreement.


     The Company has requested the modification of certain of the covenants and
other provisions contained in the Note Agreement. In addition, the Company has
recently entered into a Second Amendment to its Credit Agreement with the Banks
pursuant to which it has agreed that, among other things, the obligations to
the Banks under the Credit Agreement will be secured pursuant to certain security documents.
Concurrently with the execution of this First Amendment, the Company is
entering into a First Amendment to its Note Agreement dated as of March 1, 1998
with the noteholders party thereto (the “1998 Amendment”) and a First Amendment
to its Note Purchase Agreement dated as of June 20, 2001 with the noteholders
party thereto (“2001 Amendment”).


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     The Holders are willing to grant an amendment on the terms and conditions
set forth in this First Amendment.


     In consideration of the premises and for good and valuable consideration,
the receipt and sufficiency of which are acknowledged, the Company and the
Holders agree as follows:


SECTION 1. AMENDMENTS


     1.1. Amendment of Section 1.1. Section 1.1 is amended to include the
following after the third sentence thereof:



	 
	“The Notes will be secured until the Collateral Release Date
pursuant to the Security Documents by a Lien on the Collateral in
favor of the Collateral Agent appointed by the holders of the
Notes, the holders of the Other Notes and the Banks under the
Intercreditor Agreement.”



     1.2. Amendment of Section 2.1. Section 2.1 is amended to include the
following second paragraph:



		
	 	     “In the event of a Change of Control Event, the Company, upon
notice as provided below, shall offer to prepay the entire
principal amount outstanding of the Notes at 100% of the principal
amount thereof, plus the Make-Whole Amount determined for the
prepayment date with respect to such principal amount. The
Company shall give notice of any offer to prepay the Notes to each
holder of the Notes within three Business Days after any executive
officer has knowledge that a Change of Control Event is likely to
occur and in any event not later than the date of such Change of
Control Event. Such notice shall be certified by the principal
accounting officer or principal financial officer and shall
specify (i) the nature of the Change of Control Event, (ii) the
date fixed for prepayment, which shall not be later than 30
calendar days following the Change of Control Event, (iii) the
estimated date of the Change of Control Event, if it has not
occurred, (iv) the accrued and unpaid interest applicable to the
prepayment, (v) the estimated Make-Whole Amount due in connection
with such prepayment (calculated as if the date of such notice
were the date of prepayment), setting forth the details of such
computation, and (vi) the date by which any holder of a Note that
wishes to accept such offer must deliver notice thereof to the Company, which shall not
be later than 10 calendar days prior to the date fixed for
prepayment. Not earlier than seven calendar days prior to the
date fixed for prepayment, the Company shall give written notice
to each holder of the Notes of those holders who have given
notices of acceptance of the Company’s offer, and the principal
amount of Notes held by each, and thereafter any holder may change
its response to the Company’s offer by written notice to such



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effect delivered to the Company not less than three calendar days
prior to the date fixed for prepayment. Upon receipt by the
Company of any non-revoked notice of acceptance from any holder
within the required time period, the aggregate principal amount of
Notes held by such holder shall become due and payable on the
prepayment date. Failure of a holder to respond to a notice shall
be deemed to be a rejection by such holder of the offer to
prepay.”



     1.3. Amendment of Section 5.1.


                    1.3.1. Section 5.1 is amended to include the following defined terms:



		
	 	     “Adjusted Consolidated Tangible Net Worth — As of any date,
consolidated stockholders’ equity of the Company and its
Restricted Subsidiaries on such date, determined in accordance
with generally accepted accounting principles, less the sum or all
goodwill, trademarks, trade names, service marks, brand names,
copyrights, patents and unamortized debt discount and expense, and
other similar intangibles properly classified as such in
accordance with generally accepted accounting principles, less the
amount by which outstanding Restricted Investments on such date
exceed 5% of consolidated stockholders’ equity of the Company and
its Restricted Subsidiaries.”




		
	 	     “Banks — The institutions that are now or hereafter become
party to the Credit Agreement in their capacity as a lender or
agent thereunder.”




		
	 	     “Change of Control Event — the (i) acquisition through
purchase or otherwise, without the written consent of the Company,
by any Person, or group of Persons acting in concert, directly or
indirectly, in one or more transactions, of beneficial ownership
or control of securities representing more than 50% of the
combined voting power of the Company’s Voting Stock (including the
agreement to act in concert by Persons who beneficially own or
control securities representing more than 50% of the combined
voting power of the Company’s Voting Stock); or (ii) acquisition
through purchase or otherwise, with the written consent of the
Company, by any Person, or group of Persons acting in concert,
directly or indirectly, in one or more transactions, of beneficial
ownership or control of securities representing more than 50% of the
combined voting power
of the Company’s Voting Stock (including the agreement to act in
concert by Persons who beneficially own or control securities
representing more than 50% of the combined voting power of the
Company’s Voting Stock) and where less than one-third of the
Directors of the Company serving immediately prior to such
acquisition, continue to serve as Directors of the



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	 	Company (or any successor thereof) after the consummation of such acquisition.”




		
	 	     “Collateral — As defined in the Security Documents.”




		
	 	     “Collateral Agent — Bank of America, N.A. and its successors
and assigns.”




		
	 	     “Collateral Release Date — The earlier to occur of (i) the
date the Liens against the Collateral are released in accordance
with the Intercreditor Agreement and (ii) the date the Liens
against the Collateral are released under the Security Documents,
whether as provided in the Security Documents, by operation of law
or otherwise.”




		
	 	     “Consolidated Income Available for Fixed Charges — For any
period, the sum of (i) EBITDA for such period and (ii) Rentals for
such period under all leases other than Capitalized Leases.”




		
	 	     “Consolidated Indebtedness — As of any date, Indebtedness of
the Company and its Restricted Subsidiaries as of such date
determined on a consolidated basis in accordance with generally
accepted accounting principles.”




		
	 	     “Consolidated Interest Expense — For any period, the
consolidated interest expense of the Company and its Restricted
Subsidiaries for such period determined in accordance with
generally accepted accounting principles (including imputed
interest under Capitalized Leases and all debt discount and
expense amortized in such period).”




		
	 	     “Consolidated Net Worth — As of any date, the consolidated
shareholders’ equity of the Company and its Restricted
Subsidiaries as of such date determined in accordance with
generally accepted accounting principles.”




		
	 	     “EBITDA — For any period, the sum of Consolidated Net Income
for such period, plus, to the extent deducted in determining such
Consolidated Net Income, (i) federal, state, local and foreign
income, value added and similar taxes, (ii) Consolidated Interest
Expense and (iii) depreciation and amortization expense.”
	 
	 	     “Effective Date of the Change of Control — The date on which
a Change of Control Event occurs.”



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	 	     “First Amendment — The First Amendment to Note Agreement
dated as of February 28, 2003 between the Company and the
institution named in the signature pages thereto.”




		
	 	     “Fixed Charges — For any period, the sum of (i) Rentals for
such period under all leases other than Capitalized Leases and
(ii) Consolidated Interest Expense for such period.”




		
	 	     “holder — with respect to any Note, the Person in whose name
such Note is registered in the register maintained by the Company
pursuant to Section 10.2.”




		
	 	     “Intercreditor Agreement — That certain Intercreditor and
Collateral Agency Agreement dated February 28, 2003 among the
Collateral Agent, the Banks, the holders of the Notes and the
holders of the Other Notes, as the same may be amended, modified
or restated from time to time.”




		
	 	     “Non-Recourse Debt — Non-recourse Indebtedness secured by
Liens granted on real estate, the improvements thereon and related
property purchased or held for development and sale, including any
completed project until its sale to a customer, not to exceed
$35,000,000 in aggregate amount outstanding at any time and in
which the Company or its Restricted Subsidiaries do not invest at
any time more than 45% of the purchase and development costs of
such real estate, improvements and related property. For purposes
of this definition, “related property” for a particular real
estate project includes: leases, rents, profits and security
deposits for the project; books and records for the project;
condemnation rights, insurance payments (including deductible
amounts) and proceeds related thereto; permits, licenses,
certificates of occupancy and other governmental authorizations
for the project; franchise, management, service, governmental
(including tax incentive) and other agreements related to the
project; trademarks and trade names for the project; construction
contracts, architect’s and engineer’s agreements, plans,
specifications, drawings, surveys, models, sample materials and
other items for the construction, fixturing, renovation or
improvement of the project; and deposit accounts used exclusively
for the project.”




		
	 	     “Other Note Agreements — The Note Agreement dated as of March
1, 1998 among the Company and the institutions named therein and
the Note Purchase Agreement dated as of June 20, 2001 among the
Company and the institutions named therein.”



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	 	     “Other Notes — The 6.57% Senior Notes due March 20, 2013
issued by the Company pursuant to the Note Agreement dated as of
March 1, 1998 and the 7.87% Senior Notes due December 30, 2016
issued by the Company pursuant to the Note Purchase Agreement
dated as of June 20, 2001.”




		
	 	     “Security Documents — The mortgages, deeds of trust, security
agreements, financing statements and any other agreements or
documents entered into by the Company or any Subsidiary creating
Liens securing the Notes and other obligations payable by the
Company or any Subsidiary pursuant to this Agreement, as the same
may be amended from time to time in accordance with the
Intercreditor Agreement.”




		
	 	     1.3.2. The following definitions are amended to read in their entirety as
follows:




		
	 	     “Consolidated Total Capitalization — As of any date, the sum
of Consolidated Indebtedness and Consolidated Net Worth as of such
date.”




		
	 	     “Credit Agreement — That certain Credit Agreement among the
Company, certain Lenders (as identified therein) and Bank of
America, N.A., as Administrative Lender, dated as of June 20,
2001, as such agreement may be amended, modified, supplemented,
replaced or restated from time to time.”




		
	 	     “Material Adverse Effect” — (i) A material adverse effect on
the business, properties, assets, results of operations, prospects
or condition, financial or otherwise, of the Company and its
Subsidiaries, taken as a whole, (ii) the material impairment of
the ability of the Company to perform its obligations under this
Agreement, the Notes or any Security Document, (iii) the material
impairment of the ability of any Guarantor or group of Guarantors,
which individually or collectively are material to the Company and
its Subsidiaries as a whole, to perform its or their obligations
under the Subsidiary Guaranty or any Security Document, or (iv)
the impairment of the ability of the holders of the Notes to
enforce any of such obligations.”




               
   
1.3.3. Section 5.1 is amended to delete the definitions of “Adjusted
Consolidated Net Worth”, “Funded Debt” and “Short-Term Debt”.



     1.4. Amendment of Section 6.6.


               
   
1.4.1. The references in clause (ii)(y) of Section 6.6(c) to “Sections 7.1
through 7.13” and “Sections 7.1 through 7.9” are each amended to read
“Sections 7.1 through 7.16”.


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1.4.2. Section 6.6(i) is redesignated as Section 6.6(j) and a new Section
6.6(i) is added to read in its entirety as follows:



		
	 	     "(i) Concurrently with their delivery to the Banks, copies of
all reports concerning the Collateral and any other reports or
information (including compliance reports) related to the
Company’s compliance under the Credit Agreement that are provided
to the Banks; and"



     1.5. Addition of Section 6.12. New Section 6.12 is added to read as
follows:



		
	 	     “6.12. Engagement of Financial Advisor. If requested by the
holders of the Notes at any time when any other holder of
Indebtedness has a similar right and without limiting the
Company’s obligations under Section 11.1, the Company covenants
and agrees that it shall, and shall cause each of its Subsidiaries
to, (i) cooperate in all reasonable respects and (ii) reimburse
the holders of the Notes for any reasonable fees, costs or
expenses incurred, in connection with a financial advisor engaged
by special counsel to such holders on their behalf, including, but
not limited to, the Company granting the financial advisor
reasonable access to its facilities, files, records and reports
and providing reasonable access to its officers and directors
until the engagement has been completed, as the scope of such
engagement may be amended from time to time in the discretion of
the holders of the Notes. If acceptable to the holders of other
Indebtedness, including the holders of the Other Notes, the
holders of the Notes agree that one financial advisor may be
engaged on behalf of all holders of Indebtedness.”



     1.6. Addition of Section 6.13. New Section 6.13 shall be added to read as
follows:



		
	 	     “6.13. Interest. In consideration of the holders of the
Notes entering into the First Amendment, the Company will pay:




		
	 	     (i) additional interest equal to 0.50% of the
outstanding principal amount of the Notes per annum
(computed on the basis of a 360-day year comprised of twelve
30-day months), payable semi-annually on the interest
payment dates set forth in the Notes, commencing on the
effective date of the First Amendment and ending at such
time as the Banks and the holders of the Notes have equal
and ratable priority in any Collateral;




		
	 	     (ii) additional interest equal to 0.75% of the
outstanding principal amount of the Notes per annum
(computed on the basis of a 360-day year comprised of twelve
30-day months), payable semi-annually on the interest
payment dates set forth in the Notes, commencing on the
effective date of the First Amendment and ending on the
later of (1) such time as the Banks and the holders of the
Notes have equal and ratable priority in any Collateral, and
(2) such time as the ratio referred to in Section 7.14 has
been at least 2.25 times for the period of four fiscal
quarters ending on the last day of each of two consecutive
fiscal quarters; and



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	 	     (iii) additional interest equal to 0.25% of the
outstanding principal amount of the Notes per annum
(computed on the basis of a 360-day year comprised of twelve
30-day months), payable semi-annually on the interest
payment dates set forth in the Notes, commencing on the
effective date of the First Amendment.




	 
	Solely for purposes of the calculation pursuant to clause (ii)(2),
the additional interest referred to in clause (i) (to the extent
otherwise included) shall be excluded for all periods covered by
such calculation. Any Notes issued after the effective date of
the First Amendment will be substantially in the form set out in
Exhibit A as amended by such First Amendment, which form will
reflect the additional interest described in clause (iii) of this
Section. For purposes of this Agreement, including Section
8.1(a), the amounts due under this Section 6.13 shall be deemed to
be interest on the Notes.”



     1.7. Amendment of Section 7.1. Section 7.1 is amended to read in its
entirety as follows:



		
	 	     “7.1. Net Worth. The Company will not permit at any time
its Adjusted Consolidated Tangible Net Worth to be less than
$110,000,000 plus the cumulative sum of 50% of Consolidated Net
Income (but only if a positive number) for each fiscal quarter
ending after December 31, 2002.”



     1.8. Amendment of Section 7.2. Section 7.2 is amended to read in its
entirety as follows:



		
	 	     “7.2. Consolidated Indebtedness. The Company will not permit
at any time Consolidated Indebtedness to exceed:




		
	 	     (i) 50% of Consolidated Total Capitalization as of the
then most recently ended fiscal quarter until the later of
(1) such time as the Banks and the holders of the Notes have
equal and ratable priority in any Collateral and (2) such
time as the ratio referred to in Section 7.13 has been at
least 2.25 times for the period of four fiscal quarters
ending on the last day of each of two consecutive fiscal
quarters; and




		
	 	     (ii) 55% of Consolidated Total Capitalization as of the
then most recently ended fiscal quarter thereafter.”



     1.9. Amendment of Section 7.3. Section 7.3 is amended to read in its
entirety as follows:


     “7.3. Reserved.”


     1.10. Section 7.4 is amended to read in its entirety as follows:



		
	 	     “7.4. Indebtedness of Subsidiaries. The Company will not
permit at any time Indebtedness of Restricted Subsidiaries (other
than (i) Non-Recourse Debt,



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	 	and (ii) Indebtedness to the Company
or another Restricted Subsidiary) to exceed 5% of Adjusted
Consolidated Tangible Net Worth.”



     1.11. Amendment of Section 7.5.


               
   1.11.1. Clause (g) of Section 7.5 is amended to read in its entirety as
follows:



		
	 	     "(g) Liens not otherwise permitted by paragraphs (a)
through (f), (h), (i) and (j) incurred subsequent to the
Closing Date to secure Indebtedness; provided that (i) the
Indebtedness of the Company and its Restricted Subsidiaries
secured by Liens incurred pursuant to this paragraph (g)
does not exceed 5% of Adjusted Consolidated Tangible Net
Worth and (ii) such Liens are not used to secure
Indebtedness outstanding at the time of incurrence of such
Lien (or which could then be incurred under the revolving
credit portion of the Credit Agreement) or any extension,
renewal, replacement, refunding or refinancing of such
Indebtedness; and;”



               
   
1.11.2. The period at the end of Section 7.5(h) is replaced with “; and”
and the following new Section 7.5(i) is added:



		
	 	     "(i) Liens in favor of the Collateral Agent under the
Security Documents for the benefit of the holders of the
Notes, the Other Notes and the Banks. Notwithstanding
anything contained herein to the contrary, the Company will
not permit to exist, create, assume or incur, directly or
indirectly, any Lien in favor of the Banks other than as
contemplated by this paragraph (i); and"



               
   
1.11.3. The following new Section 7.5(j) is added to read as follows:



		
	 	     "(j) Liens granted in connection with Non-Recourse
Debt.”



     1.12. Amendment of Section 7.6. Section 7.6 is amended to read in its
entirety as follows:



		
	 	     “7.6. Restricted Payments. The Company will not, except as
hereinafter provided:




	 
	(a) declare or pay any dividends, either in cash or
property, on any shares of its capital stock of any class
(except dividends or other distributions payable solely in
shares of common stock of the Company);




		
	 	     (b) directly or indirectly, or through any Subsidiary,
purchase, redeem or retire any shares of its capital stock
of any class or any warrants, rights or options to purchase
or acquire any shares of its capital stock; or



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	 	     (c) make any other payment or distribution, directly or
indirectly, or through any Subsidiary, in respect of its
capital stock;




	 
	(all such declarations, payments, purchases, redemptions,
retirements and distributions described in clauses (a) through (c)
being herein collectively referred to as “Restricted Payments”)
if, after giving effect thereto, (i) the aggregate amount of
Restricted Payments made after March 31, 2003 to and including the
date of the making of the Restricted Payment in question would
exceed the sum of (A) $10,000,000, plus (B) 75% of Consolidated
Net Income (or less 100% of any deficit) for each fiscal quarter
(or portion thereof) of the Company subsequent to March 31, 2003,
plus (C) the net cash proceeds received by the Company after March
31, 2003 from the sale of shares of any class of its common or
nonredeemable preferred stock and (ii) no Default or Event of
Default exists or would exist. Notwithstanding anything contained
in this Section 7.6 to the contrary, the Company will not make any
Restricted Payments from the date of this First Amendment through
and including March 31, 2003.”



     1.13. Amendment of Section 7.7. The semicolon at the end of clause (a)(i)
of Section 7.7 is replaced with “; and”, and clause (a)(iii) is amended to read
in its entirety as follows:



	 
	"(iii) Reserved.”



     1.14. Amendment of Section 7.10. Section 7.10 is amended to read in its
entirety as follows:



		
	 	     “7.10. Designation of Unrestricted and Restricted
Subsidiaries. The Company may designate any Restricted Subsidiary
as an Unrestricted Subsidiary and any Unrestricted Subsidiary as a
Restricted Subsidiary; provided that,




		
	 	     (a) the Company may not designate a Restricted
Subsidiary as an Unrestricted Subsidiary unless: (i) such
Restricted Subsidiary does not own, directly or indirectly,
any Indebtedness or capital stock of the Company or any
other Restricted Subsidiary, (ii) such designation,
considered as a sale of assets, is permitted pursuant to
Section 7.8(a)(i) and (a)(ii) and Section 7.9, and (iii)
immediately before and after such designation there exists
no Default or Event of Default; and





		
	 	     (b) each Guarantor must be designated a Restricted
Subsidiary.”




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     1.15. Addition of Section 7.14. New Section 7.14 is added to read as
follows:



		
	 	     “7.14. Fixed Charge Coverage. The Company will not permit
the ratio (calculated as of the end of each fiscal quarter) of
Consolidated Income Available for Fixed Charges to Fixed Charges
for the period of four fiscal quarters ending as of the last day
of each fiscal quarter to be less than:




		
	 	     (i) 1.0 to 1.0 for the period of four fiscal quarters
ending March 31, 2003 and June 30, 2003;




		
	 	     (ii) 1.25 to 1.0 for the period of four fiscal quarters
ending September 30, 2003, December 31, 2003, March 31, 2004
and June 30, 2004;




		
	 	     (iii) 1.5 to 1.0 for the period of four fiscal quarters
ending September 30, 2004 and December 31, 2004;




		
	 	     (iv) 1.75 to 1.0 for the period of four fiscal quarters
ending March 31, 2005;




		
	 	     (v) 2.0 to 1.0 for the period of four fiscal quarters
ending June 30, 2005 and thereafter.”



     1.16. Addition of Section 7.15. New Section 7.15 is added to read as
follows:



		
	 	     “7.15. Letters of Credit. The Company will not permit to be
outstanding at any time in excess of $30,000,000 aggregate face
amount of letters of credit as to which it or any Restricted
Subsidiary has any reimbursement obligation, contingent or
otherwise, that obligates it or such Restricted Subsidiary to
provide cash collateral for such obligation.”



     1.17. Addition of Section 7.16. New Section 7.16 is added to read as
follows:



		
	 	     “7.16. Most Favored Nation. On the effective date of the
First Amendment, any financial covenant (together with any defined
terms and schedules related thereto) imposed under the Credit
Agreement is incorporated into this Agreement and shall apply as
if fully set forth herein.




		
	 	     If, after the effective date of the First Amendment, the
Banks or any other holder of Indebtedness of the Company impose
any additional or more restrictive covenant (including by
amendment of an existing covenant, by waiver or consent or
otherwise) of the type contained in Article 7 of the Credit
Agreement (as such Credit Agreement exists on the date of the
First Amendment), or the Company grants to any Bank or other
holder of Indebtedness any new covenant of the type contained in
Article 7 of the Credit Agreement (as such Credit Agreement exists



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	 	on the date of the First Amendment) more favorable to such Bank or
holder than is contained in the Note Agreement, the Company shall
promptly notify, and furnish a copy thereof to, each holder of the
Notes, and the Note Agreement shall be deemed to be amended
automatically to incorporate such additional, more restrictive or
more favorable financial covenant (together with any defined terms
and schedules related thereto).”



     1.18. Amendment of Section 8.


               
   
1.18.1. Section 8.1(c) is amended to read in its entirety as follows:



		
	 	     "(c) (i) the Company or any Restricted Subsidiary is in
default (as principal or as guarantor or other surety) in the
payment of any principal of or premium or make-whole amount or
interest on any Indebtedness that is outstanding in an aggregate
principal amount of at least $1,000,000 beyond any period of grace
provided with respect thereto, or (ii) the Company or any
Restricted Subsidiary is in default in the performance of or
compliance with any term of any evidence of any Indebtedness in an
aggregate outstanding principal amount of at least $1,000,000 or
of any mortgage, indenture or other agreement relating thereto or
any other condition exists, and as a consequence of such default
or condition such Indebtedness has become, or has been declared
(or one or more Persons are entitled to declare such Indebtedness
to be), due and payable before its stated maturity or before its
regularly scheduled dates of payment, or (iii) as a consequence of
the occurrence or continuation of any event or condition (other
than the passage of time or the right of the holder of
Indebtedness to convert such Indebtedness into equity interests),
(x) the Company or any Restricted Subsidiary has become obligated
to purchase or repay Indebtedness before its regular maturity or
before its regularly scheduled dates of payment in an aggregate
outstanding principal amount of at least $1,000,000, or (y) one or
more Persons have the right to require the Company or any
Restricted Subsidiary so to purchase or repay such Indebtedness;
or;”



               
   
1.18.2. Section 8.1(d) is amended to read in its entirety as follows:



		
	 	     "(d) Any default in the observance of any covenant or
agreement contained in (i) Sections 7.1 through 7.15, (ii) Section
8.7, or (iii) any covenant incorporated by reference pursuant to
Section 7.16 or any term contained in any Security Document and
such default continues beyond any period of grace provided
therein.”



               
   
1.18.3. Section 8.1(f) is amended to read in its entirety as follows:


     "(f) Any representation or warranty made by the Company in
this Agreement, any Security Document or in any written statement
or certificate furnished by the Company in connection with the
issuance and sale of the Notes, or furnished by the Company
pursuant to this Agreement or any Security Document, proves
incorrect in any material respect as of the date of the issuance
or making thereof;”

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1.18.4. The period at the end of Section 8.1(h) is replaced with a
semicolon followed by the word “or” and new Section 8.1(i) is added as follows:



		
	 	     "(i) a default or event of default occurs under any of the
Security Documents and such default or event of default continues
beyond any period of grace with respect thereto or any of the
Security Documents are deemed or are judicially determined not to
be valid, binding or enforceable.”



     1.19. Amendment of Section 11.1. Section 11.1 is amended to read in its
entirety as follows:



		
	 	     “11.1. Expenses. Whether or not the transactions
contemplated hereby are consummated, the Company will pay all
costs and expenses (including reasonable attorneys’ fees of a
special counsel and, if reasonably required, local or other
counsel) incurred by you and each other holder of a Note in
connection with such transactions and in connection with any
amendments, waivers or consents under or in respect of this
Agreement, the Subsidiary Guaranty, the Notes or any Security
Document (whether or not such amendment, waiver or consent becomes
effective), including, without limitation: (a) the costs and
expenses incurred in enforcing or defending (or determining
whether or how to enforce or defend) any rights under this
Agreement, the Subsidiary Guaranty, the Notes or any Security
Document or in responding to any subpoena or other legal process
or informal investigative demand issued in connection with this
Agreement, the Subsidiary Guaranty, the Notes or any Security
Document, or by reason of being a holder of any Note, and (b) the
costs and expenses, including financial advisors’ fees, incurred
in connection with the insolvency or bankruptcy of the Company or
any Subsidiary or in connection with any work-out or restructuring
of the transactions contemplated hereby and by the Notes. The
Company will pay, and will save you and each other holder of a
Note harmless from, all claims in respect of any fees, costs or
expenses if any, of brokers and finders (other than those retained
by you).”



     1.20. Addition of Section 11.11. New Section 11.11 is added to read as
follows:

13






 




		
	 	     “11.11. Release of Guarantors. You and each subsequent
holder of a Note agree to release each Guarantor from the
Subsidiary Guaranty (i) if such Guarantor ceases to be such as a
result of a Disposition permitted by Sections 7.7 or 7.8 or (ii)
at such time as the banks party to the Credit Agreement release
such Subsidiary Guarantor from any Guaranty of Indebtedness under
the Credit Agreement; provided, however, that such Guarantor shall
not be released from the Subsidiary Guaranty under the
circumstances contemplated by clause (ii), if (A) a Default or
Event of Default has occurred and is continuing, (B) such
Guarantor is to become a borrower under the Credit Agreement, (C)
such release is part of a plan of financing that contemplates such
Guarantor guaranteeing any other Indebtedness of the Company or
(D) the banks party to the Credit Agreement have received,
directly or indirectly, any fee or other consideration, including
a material modification to any financial or other covenants in the
Credit Agreement, as inducement for the release of such Guarantor.
The release of any Guarantor from the Subsidiary Guaranty is
conditioned upon your prior receipt of a certificate from a senior
financial officer of the Company stating that none of the
circumstances described in clauses (A), (B), (C) and (D) above
exist.”



     1.21. Amendment of Exhibit A. Exhibit A to the Note Agreement is amended
in the form attached as Exhibit A to this First Amendment.


SECTION 2. REAFFIRMATION; REPRESENTATIONS AND WARRANTIES


     2.1. Reaffirmation of Note Agreement. The Company reaffirms its agreement
to comply with each of the covenants, agreements and other provisions of the
Note Agreement and the Notes, including the additions and amendments of such
provisions effected by this First Amendment.


     2.2. Note Agreement. The Company represents and warrants that, subject to
the effectiveness of this First Amendment, the representations and warranties
contained in the Note Agreement are true and correct as of the date hereof,
except for such changes, facts, transactions and occurrences that have arisen
since June 28, 1994 in the ordinary course of business or as contemplated by
this First Amendment and such other matters as have been previously disclosed
in writing by the Company to the Holders, and except that any representation
made in the Note Agreement that specifies a certain date is only affirmed to be
true and correct as of such date.


     2.3. No Default or Event of Default. The Company represents and warrants
that, after giving effect to the transactions contemplated hereby, there will
exist no Default or Event of Default.


     2.4. Authorization. The Company represents and warrants that:


               2.4.1. Company. The execution, delivery and performance by the Company of
this First Amendment and each Security Document to which it is a party have
been duly authorized by all necessary corporate or other action and, except as
provided herein, do not and will not require any registration with, consent or
approval of, notice to or action by, any Person (including any Governmental
Authority) in order to be effective and enforceable. The Note Agreement, this
First Amendment and such Security Documents each constitute the legal, valid


14






 



 and binding obligations of the Company, enforceable against it in
accordance with its respective terms, except as such enforceability may be
limited by (i) applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors’ rights generally and (ii) general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at
law).


               2.4.2. Subsidiaries. The execution, delivery and performance by each
Subsidiary of each Security Document to which it is a party have been duly
authorized by all necessary corporate or other action and, except as provided
herein, do not and will not require any registration with, consent or approval
of, notice to or action by, any Person (including any Governmental Authority)
in order to be effective and enforceable. Such Security Documents each
constitute the legal, valid and binding obligations of such Subsidiary,
enforceable in accordance with their respective terms, except as such
enforceability may be limited by (i) applicable bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally and (ii) general
principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law).


     2.5. Compliance with Laws, Other Instruments, etc. The Company represents
and warrants that:


               2.5.1. Company. The execution, delivery and performance by the Company of
this First Amendment and each Security Document to which it is a party will
not, except as contemplated herein, (i) contravene, result in any breach of, or
constitute a default under, or result in the creation of any Lien in respect of
any property of the Company or any Subsidiary under, any indenture, mortgage,
deed of trust, loan, purchase or credit agreement, lease, corporate charter or
by-laws, or any other agreement or instrument by which the Company or any
Subsidiary is bound or by which the Company or any Subsidiary or any of their
respective properties may be bound or affected, (ii) conflict with or result in
a breach of any of the terms, conditions or provisions of any order, judgment,
decree or ruling of any court, arbitrator or Governmental Authority applicable
to the Company or any Subsidiary or (iii) violate any provision of any statute
or other rule or regulation of any Governmental Authority applicable to the
Company or any Subsidiary.


               
2.5.2. Subsidiaries. The execution, delivery and performance by each
Subsidiary of each Security Document to which it is a party will not, except as
contemplated herein, (i) contravene, result in any breach of, or constitute a
default under, or result in the creation of any Lien in respect of any property
of such Subsidiary under any indenture, mortgage, deed of trust, loan, purchase
or credit agreement, lease, corporate charter or by-laws, or any other
agreement or instrument by which such Subsidiary is bound or by which any of
its properties may be bound or affected, (ii) conflict with or result in a
breach of any of the terms, conditions or provisions of any order, judgment,
decree, or ruling of any court, arbitrator or Governmental Authority applicable
to such Subsidiary or (iii) violate any provision of any statute or other rule
or regulation of any Governmental Authority applicable to such Subsidiary.


15






 


SECTION 3. EFFECTIVE DATE


     This First Amendment shall become effective as of the date set forth above
upon satisfaction of the following conditions:


     3.1. Consent of Holders to First Amendment The Holders of 100% of the
aggregate principal amount of the Notes outstanding shall have executed
counterparts of this First Amendment.


     3.2. Amendment of Other Note Agreements. The holders of the Other Notes
shall have entered into the 1998 Amendment and the 2001 Amendment, as
appropriate.


     3.3. Intercreditor Agreement. The Holders shall have entered into the
Intercreditor Agreement on terms satisfactory to it with the Banks, the holders
of the Other Notes, and the Collateral Agent.


     3.4. Security Interest. The Holders shall have received executed Security
Documents satisfactory to it that create perfected Liens on the Collateral as
provided therein and evidence of the perfection of such Liens.


     3.5. Amendment to Credit Agreement. The Holders shall have received a
copy of an executed Third Amendment to the Credit Agreement.


     3.6. Amendment Fee. Each Holder, whether or not such Holder executes this
First Amendment, shall have received payment of an amendment fee equal to 0.50%
of the principal amount of the outstanding Notes held by such Holder.


     3.7. Opinion of Company Counsel. The Holders shall have received an
opinion of counsel for the Company, in form and substance satisfactory to the
Holders and their special counsel, to the effect set forth in Sections 2.4 and
2.5.


     3.8. Expenses. The Company shall have paid the fees and expenses of
special counsel to the Holders.


SECTION 4. MISCELLANEOUS


     4.1. Ratification. Except to the extent amended, modified, deleted or
added to hereby, the terms and provisions of the Note Agreement, including the
representations and warranties contained therein, shall remain in full force
and effect and are ratified, confirmed, remade and approved in all respects as
of the date hereof.


     4.2. Reference to and Effect on the Note Agreement. Upon the final
effectiveness of this First Amendment, each reference in the Note Agreement and
in other documents describing or referencing the Note Agreement to the
“Agreement,” “Note Agreement,” “hereunder,” “hereof,” “herein,” or words of
like import referring to the Note Agreement, shall mean and be a reference to
the Note Agreement, as amended hereby.


16






 


     4.3. Actions in Respect of Future Collateral. The Company agrees to
provide such information, take such action, execute such Security Documents and
make such other filings as may be necessary to grant the Collateral Agent a
Lien on any property now or hereafter constituting Collateral for the equal and
ratable benefit of the holders of the Notes, the holders of the Other Notes and
the Banks.


     4.4. Binding Effect. This First Amendment shall be binding upon and inure
to the benefit of the respective successors and assigns of the parties hereto.


     4.5. Governing Law. This First Amendment shall be governed by and
construed in accordance with Illinois law.


     4.6. Counterparts. This First Amendment may be executed in any number of
counterparts, each executed counterpart constituting an original, but
altogether only one instrument.


     4.7. Exchange of Notes. It shall not be necessary for the Holders to
surrender their Notes in exchange for new Notes. However, upon any surrender
for exchange or transfer, Notes issued in exchange or in connection with a
transfer shall be in the form of the attached Exhibit A.


     4.8. Notices to the Company. Pursuant to Section 11.2 of the Note
Agreement, the Company hereby designates the following address for the receipt
of all notices and communications provided in connection with the Note
Agreement:



	 
	Butler Manufacturing Company

1540 Genessee

Kansas City, MO 64102

Attn: Chief Financial Officer

Telephone: (816) 968-3216

Facsimile: (816) 968-6504

Electronic: lcmiller@butlermfg.com




	 
	With a copy to:




	 
	Butler Manufacturing Company

1540 Genessee

Kansas City, MO 64102

Attn: General Counsel

Telephone: (816) 968-3214

Facsimile: (816) 968-3211

Electronic: jwhuey@butlermfg.com



17






 


     If you are in agreement with the foregoing, please sign the accompanying
counterpart of this First Amendment and return it to the Company, whereupon the
foregoing shall become a binding agreement between you and the Company upon
satisfaction of the conditions set forth in Section 3 of this First Amendment.



	 	 
	 	BUTLER MANUFACTURING COMPANY
	 
	 	By:  /s/ Larry C. Miller

Name:  Larry C. Miller

Title:  Vice President - Finance



Acknowledged and agreed to

by each Guarantor:


BMC REAL ESTATE, INC.

BUCON, INC.

BUTLER HOLDINGS, INC.

BUTLER REAL ESTATE, INC.

LESTER BUILDINGS, INC.

BUTLER PACIFIC, INC.

MODULINE WINDOWS, INC.

LIBERTY BUILDING SYSTEMS, INC.



	 
	By:   /s/ Larry C. Miller

     Larry C. Miller

     Vice President - Finance



S-1






 



	 
	 
	The foregoing is hereby agreed

to as of the date thereof




	 
	PRINCIPAL LIFE INSURANCE

    COMPANY,

    an Iowa corporation




	 	 	 
	By:	 	
Principal Global Investors, LLC

a Delaware limited liability company,

its authorized signatory
	 
	 	 	
By:  /s/ L.S. Valentine

Its:  Counsel
	 
	 	 	
By:  /s/ Stephen G. Skrivanek

Its:  Counsel




	 
	MASSACHUSETTS MUTUAL LIFE

    INSURANCE COMPANY
	 
	By:   David L. Babson & Company Inc.,

       as Investment Adviser
	 
	By:  /s/ Emeka O. Onukwugha

Name:  Emeka O. Onukwugha

Title: Managing Director
	 
	BUSINESS MEN’S ASSURANCE

COMPANY OF AMERICA




	 
	By:  /s/ Robert N. Sawyer

Name:  Robert N. Sawyer

Title: Senior Vice President



S-2






 



	 
	 
	NATIONWIDE LIFE INSURANCE
    COMPANY OF
AMERICA
	 
	By:  /s/ Joseph P. Young

Name:  Joseph P. Young

Title: Credit Officer

     Fixed Income Securities
	 
	NATIONWIDE LIFE AND ANNUITY

     INSURANCE COMPANY OF AMERICA
	 
	By:  /s/ Joseph P. Young

Name:  Joseph P. Young

Title: Credit Officer

     Fixed Income Securities



S-3






 


EXHIBIT A



[FORM OF NOTE]


BUTLER MANUFACTURING COMPANY


8.27% SENIOR NOTE


Due December 30, 2003





     THIS NOTE MAY BE SUBJECT TO A HOME OFFICE PAYMENT AGREEMENT AND
ACCORDINGLY ANY PROSPECTIVE PURCHASER SHOULD FIRST VERIFY THE UNPAID PRINCIPAL
AMOUNT WITH THE COMPANY.








	 	 	 	 	 
	Registered Note No. R-      

$               	 	 		
[Date]

PPN: [          ]




     BUTLER MANUFACTURING COMPANY, a Delaware corporation (the “Company”), for
value received, promises to pay to                 or registered assigns,
on December 30, 2003, 2013, the principal amount of           Million Dollars
($         ) and to pay interest (computed on the basis of a 360-day year of
twelve 30-day months) on the principal amount from time to time remaining
unpaid hereon at the rate of 8.27% per annum from the date hereof until
maturity, payable on June 30 and December 30 in each year, commencing December
30, 1994, and at maturity, and to pay interest on overdue principal, Make-Whole
Amount and (to the extent legally enforceable) on any overdue installment of
interest at the rate of 10.27% per annum until paid. Payments of the principal
of, the Make-Whole Amount, if any, and interest on this Note shall be made in
lawful money of the United States of America in the manner and at the place
provided in Section 2.5 of the Note Agreement as hereinafter defined.


     This Note is issued under and pursuant to the terms and provisions of the
Note Agreement, dated as of June 1, 1994, entered into by the Company with the
Purchaser named in Schedule I thereto (the “Note Agreement”), and this Note and
any holder hereof are entitled to all of the benefits provided for by such Note
Agreement or


Exhibit A






 



referred to therein. Reference is made to the Note Agreement for a statement
of such benefits. Capitalized terms not otherwise defined herein have the
meanings ascribed to them in the Note Agreement.


     As provided in the Note Agreement, upon surrender of this Note for
registration of transfer, duly endorsed or accompanied by a written instrument
of transfer duly executed by the registered holder hereof or its attorney duly
authorized in writing, a new Note for a like unpaid principal amount will be
issued to, and registered in the name of, the transferee upon the payment of
the taxes or other governmental charges, if any, that may be imposed in
connection therewith. The Company may treat the person in whose name this Note
is registered as the owner hereof for the purpose of receiving payment and for
all other purposes, and the Company shall not be affected by any notice to the
contrary.


     This Note may be declared due prior to its expressed maturity date,
voluntary prepayments may be made hereon and certain prepayments are required
to be made, all in the events, on the terms and in the manner as provided in
the Note Agreement. Such prepayments include required prepayments on December
30 in each year, commencing December 30, 1997 through December 30, 2002,
inclusive, and certain optional prepayments with a Make-Whole Amount.


     Should the indebtedness represented by this Note or any part thereof be
collected in any proceeding provided for in the Note Agreement or be placed in
the hands of attorneys for collection, the Company agrees to pay, in addition
to the principal, Make-Whole Amount, if any, and interest due and payable
hereon, all costs of collecting this Note, including reasonable attorneys’ fees
and expenses.


     Payment of the principal of, and interest and Make-Whole Amount, if any,
on this Note, and all other amounts due under the Note Agreement, is guaranteed
pursuant to the terms of a Subsidiary Guaranty dated as of March 1, 1998 of
certain Subsidiaries of the Company.*


     This Note and the Note Agreement are governed by and construed in
accordance with the laws of the State of Illinois.



	 
	BUTLER MANUFACTURING COMPANY








	*	 	This paragraph must be removed at such time as there are no Subsidiary Guarantors.


2


Exhibit A







 



	 	 	 
	 	By:	 
	 	Its:	

	 	 	





3


Exhibit A







 



SCHEDULE I


Information as to Holder of Notes



	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Percentage of
	 	 	 	 	 	 	 	 	 	 	Total
	 	 	Principal	 	Total Principal	 	Principal
	Note Holder	 	Amount of Note	 	Amount	 	Outstanding
	Principal Life Insurance
	 	$	16,000,000	 	 	$	2,857,143	 	 	 	57.14	%
	Company
	 	 	4,000,000	 	 	 	 	 	 	 	 	 
	Massachusetts Mutual Life
	 	$	5,000,000	 	 	$	714,286	 	 	 	14.29	%
	Insurance Company
	 	 	 	 	 	 	 	 	 	 	 	 
	Business Men’s Assurance
	 	$	5,000,000	 	 	$	714,286	 	 	 	14.29	%
	Company of America
	 	 	 	 	 	 	 	 	 	 	 	 
	Nationwide Life Insurance
	 	$	1,500,000	 	 	$	214,286	 	 	 	4.29	%
	Company of America(2)
	 	 	 	 	 	 	 	 	 	 	 	 
	Nationwide Life Insurance
	 	$	2,000,000	 	 	$	285,714	 	 	 	5.71	%
	Company of America(3)
	 	 	 	 	 	 	 	 	 	 	 	 
	Nationwide Life and Annuity
	 	$	1,500,000	 	 	$	214,286	 	 	 	4.29	%
	Insurance Company of
America(4)
	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	$	35,000,000	 	 	$	5,000,000	 	 	 	100.00	%








	 	 	(2) Formerly Provident Mutual Life Insurance Company of Philadelphia, SPDA
	 
	 	 	(3) Formerly Provident Mutual Life Insurance Company — CALIC
	 
	 	 	(4) Provident Mutual Life and Annuity Company of America



23