Document:

Exhibit 4.7

 

EXECUTION COPY

 

AMENDMENT NO. 8 (this “Amendment”) dated as of August 8, 2005, to the
Second Lien Credit Agreement dated as of July 29, 2004, among THERMADYNE
INDUSTRIES, INC., a Delaware corporation (“Industries”), THERMAL DYNAMICS CORPORATION, a
Delaware corporation (“Dynamics”),
TWECO PRODUCTS, INC., a Delaware corporation (“Tweco”), VICTOR EQUIPMENT COMPANY, a
Delaware corporation (“Victor”),
C & G SYSTEMS, INC., an Illinois corporation (“C & G”),
STOODY COMPANY, a Delaware corporation (“Stoody”), THERMAL ARC, INC., a Delaware
corporation (“Thermal
Arc”), PROTIP CORPORATION, a Missouri corporation (“ProTip”), and
THERMADYNE INTERNATIONAL CORP., a Delaware corporation (“International” and,
together with ProTip, Thermal Arc, Stoody, C & G, Victor, Tweco,
Dynamics and Industries, the “Borrowers”), the Guarantors party thereto, the Lenders
from time to time party thereto and CREDIT SUISSE, as administrative agent (in
such capacity, the “Administrative
Agent”) and collateral agent (in such capacity, the “Collateral Agent”)
(as amended by Amendment No. 1 and Agreement effective as of September 30,
2004, by Amendment No. 2 and Joinder Agreement dated as of November 22,
2004, by Amendment No. 3 and Consent dated as of January 3, 2005, by
Amendment No. 4 dated as of March 16, 2005, by Amendment No. 5
dated as of March 30, 2005, by Amendment No. 6 dated as of March 31,
2005, and by Amendment No. 7 dated as of July 1, 2005, and as further
amended, supplemented or modified, the “Credit Agreement”).

 

A.                                   Pursuant to the Credit
Agreement, the Lenders have extended credit to the Borrowers.

 

B.                                     The Borrowers have requested
an amendment to the Credit Agreement as set forth herein.

 

C.                                     Capitalized terms used but
not defined herein shall have the meanings assigned to them in the Credit
Agreement.

 

Accordingly, in consideration of the mutual
agreements herein contained and other good and valuable consideration, the
sufficiency and receipt of which are hereby acknowledged, the parties hereto
agree as follows:

 

SECTION 1. Amendment.
The table appearing in Section 6.10 (Maximum
Leverage Ratio) of the Credit Agreement is hereby amended and
restated in its entirety to read as follows: 

 

	
  Date or Period

  	
   

  	
  Ratio

  	
   

  
	
  Closing Date through September 30,
  2004

  	
   

  	
  6.00 to
  1.00

  	
   

  
	
  October 1, 2004 through December 31,
  2004

  	
   

  	
  6.18 to
  1.00

  	
   

  
	
  January 1, 2005 through March 31,
  2005

  	
   

  	
  7.20 to
  1.00

  	
   

  
	
  April 1, 2005 through June 30,
  2005

  	
   

  	
  7.10 to
  1.00

  	
   

  
	
  July 1, 2005 through September 30,
  2005

  	
   

  	
  6.85 to
  1.00

  	
   

  
	
  October 1, 2005 through December 31,
  2005

  	
   

  	
  5.67 to
  1.00

  	
   

  
	
  January 1, 2006 through March 31,
  2006

  	
   

  	
  6.20 to
  1.00

  	
   

  
	
  April 1, 2006 through June 30,
  2006

  	
   

  	
  5.39 to
  1.00

  	
   

  

 

 

SECTION 2.
Representations and Warranties. To induce the
other parties hereto to enter into this Amendment, the Credit Parties represent
and warrant to each of the Lenders, the Administrative Agent and the Collateral
Agent, that, after giving effect to this Amendment, (a) the
representations and warranties set forth in Article III of the Credit
Agreement are true and correct in all material respects on and as of the date
hereof, except to the extent such representations and warranties expressly
relate to an earlier date, and (b) no Default or Event of Default has
occurred and is continuing.

 

SECTION 3.
Effectiveness. This Amendment
shall become effective as of the date set forth above on the date that the
Administrative Agent (or its counsel) shall have received:

 

(a)                                  counterparts of this Amendment that, when taken together,
bear the signatures of the Credit Parties and the Required Lenders;

 

(b)                                 an amendment fee in an amount equal to $25,000; and

 

(c)                                  a copy of a fully executed and delivered amendment, in form
and substance reasonably satisfactory to the Administrative Agent, to the First
Lien Credit Agreement.

 

SECTION 4.
Effect of Amendment. Except as
expressly set forth herein, this Amendment shall not by implication or
otherwise limit, impair, constitute a waiver of, or otherwise affect the rights
and remedies of the Lenders, the Administrative Agent or the Collateral Agent
under the Credit Agreement or any other Loan Document, and shall not alter,
modify, amend or in any way affect any of the terms, conditions, obligations,
covenants or agreements contained in the Credit Agreement or any other Loan
Document, all of which are ratified and affirmed in all respects and shall
continue in full force and effect. 
Nothing herein shall be deemed to entitle any Credit Party to a consent
to, or a waiver, amendment, modification or other change of, any of the terms,
conditions, obligations, covenants or agreements contained in the Credit
Agreement or any other Loan Document in similar or different
circumstances.  This Amendment shall
apply and be effective only with respect to the provisions of the Credit
Agreement specifically referred to herein. 
After the date hereof, any reference to the Credit Agreement shall mean
the Credit Agreement, as modified hereby. 
This Amendment shall constitute a “Loan Document” for all purposes of
the Credit Agreement and the other Loan Documents.

 

SECTION 5.
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 and delivered shall be deemed an original, but all
such counterparts together shall constitute but one and the same contract.  Delivery of an executed counterpart of a
signature

 

2

 

page of this Amendment by facsimile
transmission shall be as effective as delivery of a manually executed
counterpart hereof.

 

SECTION 6.
Applicable Law. THIS AMENDMENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK.

 

SECTION 7.
Headings. The headings
of this Amendment are for purposes of reference only and shall not limit or otherwise
affect the meaning hereof.

 

SECTION 8.
Expenses. The Borrowers
agree to reimburse the Administrative Agent for all out-of-pocket expenses in
connection with this Amendment, including the reasonable fees, charges and
disbursements of Cravath, Swaine & Moore LLP, counsel for the
Administrative Agent.

 

SECTION 9.
Reaffirmation.  Each of the Guarantors hereby acknowledges
receipt and notice of, and consents to the terms of, this Amendment, and
affirms and confirms its guarantee of the Obligations and, if applicable, the
pledge of and/or grant of a security interest in its assets as Collateral to
secure the Obligations, all as provided in the Collateral Documents as
originally executed, and acknowledges and agrees that such guarantee, pledge
and/or grant of security interest continue in full force and effect in respect
of, and to secure, the Obligations under the Credit Agreement, as amended
hereby, and the other Loan Documents.

 

[Remainder of this page intentionally
left blank]

 

3

 

IN WITNESS WHEREOF, each of the parties
hereto has caused this Amendment to be executed and delivered by its duly
authorized officer as of the date first set forth above.

 

	
   

  	
  THERMADYNE INDUSTRIES, INC.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  VP, Secretary & General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THERMAL DYNAMICS

  CORPORATION,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  VP, Secretary & General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TWECO PRODUCTS, INC.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/
  Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title: VP, Secretary & General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  VICTOR EQUIPMENT COMPANY,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  VP, Secretary & General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C & G SYSTEMS, INC.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  VP, Secretary & General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  STOODY COMPANY,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/
  Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title: VP, Secretary & General Counsel

  

 

 

	
   

  	
  THERMAL ARC, INC.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  VP, Secretary & General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PROTIP CORPORATION,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  VP, Secretary & General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THERMADYNE INTERNATIONAL

  CORP.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  VP, Secretary & General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THERMADYNE HOLDINGS

  CORPORATION,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  VP, Secretary & General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MECO HOLDING COMPANY,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  VP, Secretary & General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C&G SYSTEMS HOLDING, INC.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title: VP, Secretary & General Counsel

  

 

 

	
   

  	
  CIGWELD PTY LTD.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  VP, Secretary & General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DUXTECH PTY LTD.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  VP, Secretary & General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  QUETACK PTY, LTD.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  VP, Secretary & General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  QUETALA PTY, LTD.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  VP, Secretary & General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THERMADYNE AUSTRALIA PTY LTD.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  VP, Secretary & General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THERMADYNE INDUSTRIES LIMITED,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title: VP, Secretary & General Counsel

  

 

 

	
   

  	
  THERMADYNE WELDING PRODUCTS

  CANADA LIMITED,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Patricia S. Williams

  	
   

  
	
   

  	
   

  	
   

  	
  Title: VP, Secretary & General Counsel

  

 

 

	
   

  	
  CREDIT SUISSE, CAYMAN ISLANDS BRANCH, individually
  and as Administrative Agent and Collateral Agent,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Phillip Ho

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Phillip Ho

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Karim Blasetti

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Karim Blasetti

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  Associate

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GSO CREDIT OPPORTUNITIES FUND (EMPLOYEE), LP
  (formerly known as CSFB Credit Opportunities Fund (Employee), LP),

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GSO CREDIT OPPORTUNITIES FUND (HELIOS), LP
  (formerly known as CSFB Credit Opportunities Fund (Helios), LP),

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Matthew W. Quigley

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Matthew W. Quigley

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Chief Operating OfficerExhibit 10.1

 

August 5, 2005

 

 

PERSONAL AND CONFIDENTIAL

 

Mr. Albert E. Smith

 

Dear Al:

 

On behalf of Tetra Tech, Inc.,
I am pleased to make you this formal offer to join our Company as its Vice
Chairman with executive responsibilities. 
As I mentioned, your election received the unanimous approval of the
Board at a special meeting yesterday afternoon. 
We believe that your experience at Lockheed Martin, together with your
strategic business knowledge, are a good complement to the vision and mission
of our management at Tetra Tech.  This
letter sets forth the terms of our offer. 
If it is acceptable, please sign and return it to me.

 

Base Salary.  You will be paid an annual base salary of
$200,000 per year.

 

Bonus.  You will receive a bonus of up to $200,000
based on performance metrics, commencing in fiscal 2006.  You may elect to receive the bonus in the
form of cash, equivalent value restricted stock or stock options.

 

Start Date.  Your first day of employment with the Company
will be September 1, 2005.

 

Stock Options.  Upon commencing employment with the Company,
you will receive an incentive stock option to purchase up to 166,667 shares of
Tetra Tech stock at an exercise price equal to the closing price of Tetra Tech’s
stock on September 1, 2005.  This option
will become exercisable in accordance with the following schedule:  (i) 50,000 shares on September 1,
2006, and (ii) 116,667 in 24 equal monthly installments following September 1,
2006.

 

  The option will be exercisable as to vested
shares for three months following the termination of your employment.  Further, the option will become immediately
exercisable for all shares in the event the Company is acquired in a merger or
asset sale, unless the option is assumed by the acquiring entity.  The option will be issued under the Company’s
2002 Stock Option Plan.

 

Termination of
Employment without Cause. 
Your employment is at-will, and can be terminated by you or the Company
at any time, with or without cause.  As
used herein, “cause” means fraud, embezzlement, theft, or violation of law
during the course of your employment, unauthorized disclosure of Tetra Tech
confidential information, intentional breach of Tetra Tech policies, or willful
failure to substantially perform your duties. 
If the 

 

 

Company terminates your employment without cause, you will receive one
year of base salary plus a pro rated bonus earned during the fiscal year of
termination, both payable weekly (or otherwise subject to Tetra Tech’s regular
payroll schedule) over the course of one year, subject to the terms of the
paragraph below entitled “Conditions for Severance.”

 

Conditions for
Severance.  In the
event that your employment with the Company is terminated without cause, your
receipt of any salary or bonus payments will cease if (i) you become
employed or otherwise affiliated with a business engaged in any industry in
which Tetra Tech operates, (ii) you make an unauthorized disclosure of
Tetra Tech confidential information, or (iii) you disparage the Company in
public.

 

Benefit Plans.  You will be eligible for the customary full
range of employee benefits available to the Company’s executive officers,
including health, dental and life insurance and a retirement program.

 

Housing and Travel.  We understand that you expect to be in Pasadena
approximately one week per month. 
Accordingly, the Company will provide you with an apartment in the
Pasadena area.  Further, the Company will
reimburse you for the costs incurred by you and your fiancé in traveling to and
from Pasadena.  To the extent you incur
any tax liability with respect to these benefits, the Company will pay a “gross
up” to cover such liability.

 

Administrative
Support.  You will
receive the administrative support necessary to perform your duties for the
Company.

 

If this letter is
acceptable, please sign below and return it to me.  I am excited about your joining the Tetra
Tech team and look forward to working with you.

 

	
  Sincerely,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Li-San Hwang

  	
   

  	
   

  
	
  Li-San
  Hwang

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ACCEPTED AND AGREED:

  	
   

  
	
   

  	
   

  
	
  /s/ Albert E. Smith

  	
   

  	
  8/5/2005

  	
   

  
	
  Albert E. Smith

  	
  Date

  	
   

  
					

 

2

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