Document:

EX-10.1

 

Exhibit 10.1

SECOND AMENDMENT

TO

AMENDED & RESTATED CREDIT AGREEMENT

          THIS SECOND AMENDMENT TO AMENDED & RESTATED CREDIT AGREEMENT (this “Second Amendment”)
dated as of July 21, 2006, relates to that certain Amended and Restated Credit Agreement dated as
of December 19, 2005 (as amended by that certain First Amendment, dated as of March 22, 2006, and
as further amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among NMHG Holding Co., a Delaware corporation (“NMHG Holding”), NACCO
Materials Handling Group, Inc., a Delaware corporation (“NMHG”), NACCO Materials Handling
Limited (company number 02636775), incorporated under the laws of England and Wales (the “UK
Borrower”), NACCO Materials Handling B.V., a private company with limited liability
incorporated under the laws of the Netherlands having its corporate seat in Nijmegen (together with
NMHG Holding, NMHG and the UK Borrower, the “Borrowers”), the financial institutions from
time to time a party thereto as Lenders, whether by execution of the Credit Agreement or an
Assignment and Acceptance (as defined therein), the financial institutions from time to time party
thereto as Issuing Bank, whether by execution of the Credit Agreement or an Assignment and
Acceptance or otherwise, Citicorp North America, Inc., a Delaware corporation, in its capacity as
administrative agent for the Lenders and the Issuing Bank thereunder (with its successors and
permitted assigns in such capacity, the “Administrative Agent”), and Citigroup Global
Markets Inc. as sole lead arranger and sole bookrunner.

          1. Definitions. Capitalized terms defined in the Credit Agreement and not otherwise
defined or redefined herein have the meanings assigned to them in the Credit Agreement.

          2. Second Amendment Effective Date Amendments to Credit Agreement. Upon the “Second
Amendment Effective Date” (as defined in Section 4 below), the Credit Agreement is hereby
amended as follows:

          2.1 Amendments to Section 6.01(p) (ERISA Matters). Section 6.01(p) of the Credit
Agreement is hereby amended as follows:

     (a) by deleting the sixth sentence of Section 6.01(p) in its entirety and substituting
the following in its stead:

No Borrower or any ERISA Affiliate nor any fiduciary of any Plan
which is not a Multiemployer Plan (i) has engaged in a nonexempt
prohibited transaction described in Sections 406 of ERISA or 4975 of
the Internal Revenue Code or (ii) has taken or failed to take any
action which would constitute or result in a Termination Event other
than (a) a merger permitted under Section
9.09(b)(Restrictions on Fundamental Changes) or (b) the
Reportable Events described on Schedule 6.01-P(A) attached

Second Amendment to

NMHG A&R Credit Agreement

 

 

hereto, which Reportable Events are not reasonably expected to
result in a liability in excess of $2,000,000 to any Borrower or any
ERISA Affiliate.

          2.2 Addition of Schedule 6.01-P(A). Schedule 6.01-P(A) is hereby added in the proper
numerical order to the Credit Agreement Schedule in the form and substance attached as Exhibit
A hereto.

          3. Representations and Warranties. The Borrowers hereby represent and warrant to each
Lender, each Issuing Bank and the Administrative Agent that (a) all of the representations and
warranties of the Borrowers and the Borrower Subsidiaries in the Credit Agreement and in any other
Loan Document are true and correct in all material respects on and as of the Second Amendment
Effective Date as though made to each Lender, each Issuing Bank and the Administrative Agent on and
as of such date (other than representations and warranties which expressly speak as of a different
date, which representations shall be made only on such date) and (b) as of the Second Amendment
Effective Date, no Event of Default or Default has occurred and is continuing.

          4. Second Amendment Effective Date. This Second Amendment shall become effective as
of the date first above written (the “Second Amendment Effective Date”) upon the
satisfaction of the following conditions:

          4.1 The Administrative Agent shall have received counterparts hereof executed by the
Borrowers, the Administrative Agent and each Lender required to execute the Second Amendment
pursuant to the terms of the Credit Agreement;

          4.2 Each of the representations and warranties contained in this Second Amendment shall be
true and correct in all material respects on and as of the Second Amendment Effective Date;

          4.3 As of the Second Amendment Effective Date, no Event of Default or Default shall have
occurred and be continuing; and

          4.4 The Borrowers shall have reimbursed the Administrative Agent for the reasonable fees,
costs and expenses incurred by or owing to it in connection with this Second Amendment, and all
other outstanding fees and expenses incurred prior to the Second Amendment Effective Date, in each
case which are payable under Section 14.02 of the Credit Agreement.

          5. Miscellaneous.

          5.1 This Second Amendment is a Loan Document. The headings herein are for convenience of
reference only and shall not alter or otherwise affect the meaning hereof.

          5.2 On and after the Second Amendment Effective Date, each reference in the Credit Agreement
to “this Agreement”, “hereunder”, “hereof” or words of like import, and each reference in the other
Loan Documents to the Credit Agreement, shall mean and be a reference to

Second Amendment to

NMHG A&R Credit Agreement

2

 

the Credit Agreement as amended hereby. Except to the extent specifically amended or modified
hereby, all of the terms of the Credit Agreement and the other Loan Documents shall remain
unchanged and in full force and effect and are hereby ratified and confirmed in all respects.

          5.3 The execution, delivery and effectiveness of this Second Amendment shall not, except as
expressly provided herein, operate as a waiver of any right, power or remedy of any Lender, the
Issuing Bank or the Administrative Agent under the Credit Agreement or any of the Loan Documents,
nor obligate any Lender, the Issuing Bank or the Administrative Agent to agree to similar
amendments in the future.

          6. Counterparts; Facsimile Delivery. This Second Amendment may be executed in
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 instrument. Delivery of an
executed counterpart of this Second Amendment by facsimile transmission shall be effective as
delivery of a manually executed counterpart hereof.

          7. GOVERNING LAW. THIS SECOND AMENDMENT, AND ALL ISSUES RELATING TO THIS SECOND
AMENDMENT, INCLUDING THE VALIDITY, ENFORCEABILITY, INTERPRETATION OR CONSTRUCTION OF THIS SECOND
AMENDMENT OR ANY PROVISION HEREOF, SHALL BE GOVERNED BY, AND SHALL BE DETERMINED AND ENFORCED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

[Signature pages follow]

Second Amendment to

NMHG A&R Credit Agreement

3

 

          IN WITNESS WHEREOF, the Administrative Agent, the Issuing Bank, the Requisite Lenders and
the Borrowers have caused this Second Amendment to be executed by their respective officers
thereunto duly authorized as of the date first above written.

	 	 	 	 	 
	 	NMHG HOLDING CO.

 	 
	 	By:  	/s/ Jeffrey C. Mattern	 
	 	 	Name:  Jeffrey C. Mattern	 
	 	 	Title:    Treasurer	 

	 	 	 	 	 
	 	NACCO MATERIALS HANDLING GROUP, INC.

 	 
	 	By:  	/s/ Jeffrey C. Mattern	 
	 	 	Name:  Jeffrey C. Mattern	 
	 	 	Title:    Treasurer	 

	 	 	 	 	 
	 	NACCO MATERIALS HANDLING LIMITED

 	 
	 	By:  	/s/ Jeffrey C. Mattern	 
	 	 	Name:  Jeffrey C. Mattern	 
	 	 	Title:    Director	 

	 	 	 	 	 
	 	NACCO MATERIALS HANDLING B.V.

By: NACCO MATERIALS HANDLING GROUP, LTD., its Managing Director

 	 
	 	By:  	/s/ Jeffrey C. Mattern	 
	 	 	Name:  Jeffrey C. Mattern	 
	 	 	Title:    Director	 

Signature Page to

Second Amendment to

NMHG A&R Credit Agreement

 

 

	 	 	 	 	 
	 	CITICORP NORTH AMERICA, INC., as Administrative Agent, as Issuing Bank, as Swing Loan Bank and as a Domestic Lender

 	 
	 	By:  	/s/ Miles
D. McManus	 
	 	 	Name:  Miles D. McManus	 
	 	 	Title:  Vice President and Director	 

	 	 	 	 	 
	 	CITIBANK INTERNATIONAL PLC, as Multicurrency Lender and as Overdraft Line Bank

 	 
	 	By:  	/s/ Miles
D. McManus	 
	 	 	Name:  Miles D. McManus	 
	 	 	Title:  Authorized Signer	 

Signature Page to

Second Amendment to

NMHG A&R Credit Agreement

 

 

	 	 	 	 	 
	 	GENERAL ELECTRIC CAPITAL CORPORATION, as a Domestic Lender

 	 
	 	By:  	/s/ Dwayne L. Coker	 
	 	 	Name:  Dwayne L. Coker	 
	 	 	Title:    Duly Authorized Signatory	 

Signature Page to

Second Amendment to

NMHG A&R Credit Agreement

 

 

	 	 	 	 	 
	 	WELLS FARGO FOOTHILL, INC., as a Domestic Lender

 	 
	 	By:  	/s/  Jennifer
Fory	 
	 	 	Name:  	Jennifer Fory	 
	 	 	Title:  	Account Executive, AVP	 

Signature Page to

Second Amendment to

NMHG A&R Credit Agreement

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as a Domestic Lender

 	 
	 	By:  	/s/  Scott J. Bell	 
	 	 	Name:  	Scott J. Bell	 
	 	 	Title:  	Senior Vice President	 

Signature Page to

Second Amendment to

NMHG A&R Credit Agreement

 

 

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION, as a Domestic Lender

 	 
	 	By:  	/s/  Nadine
M. Eames	 
	 	 	Name:  	Nadine M. Eames	 
	 	 	Title:  	Vice President	 

Signature Page to

Second Amendment to

NMHG A&R Credit Agreement

 

 

	 	 	 	 	 
	 	ING CAPITAL LLC, as a Domestic Lender

 	 
	 	By:  	/s/ Janice M. Whalen
	 	 	 	 
	 	 	Name:  	Janice M. Whalen	 
	 	 	Title:  	Vice President	 

Signature Page to

Second Amendment to

NMHG A&R Credit Agreement

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a Domestic Lender

 	 
	 	By:  	/s/ Daryl K. Hogge	 
	 	 	Name:  	Daryl K. Hogge	 
	 	 	Title:  	Senior Vice President	 

Signature Page to

Second Amendment to

NMHG A&R Credit Agreement

 

 

	 	 	 	 	 
	 	HSBC BANK USA, N.A., as a Domestic Lender

 	 
	 	By:  	/s/
Paul W. Ip	 
	 	 	Name:  	Paul W. Ip	 
	 	 	Title:  	Vice President	 

Signature Page to

Second Amendment to

NMHG A&R Credit Agreement<PAGE>
                                                                   EXHIBIT 10(f)

                                INTERIM AGREEMENT

         This Interim Agreement is entered into as of and is effective as of May
5, 2006, by and between Wisconsin Electric Power Company (hereinafter "WEPCo"),
an electric utility having its principal offices at 231 W. Michigan Street,
Milwaukee, Wisconsin 53201, and Empire Mining Partnership ("Empire"), and Tilden
Mining Company, L.C. ("Tilden"), by their managing agent, The Cleveland-Cliffs
Iron Company, a corporation having its principal offices at 1100 Superior
Avenue, Cleveland, Ohio 44114, (hereinafter "Cliffs"). Empire Iron Mining
Partnership and Tilden Mining Company, L.C. are herein referred to collectively
as "the Mines".

         WHEREAS, the Mines and WEPCo are parties in pending American
Arbitration Association Case No. 54 198 Y 01237 ("Arbitration" and the panel of
arbitrators deciding the Arbitration "Arbitrators"), which proceeding involves
claims related to the pricing of electric service under the Power Purchase
Agreements ("PPAs"), dated as of January 22, 1996, between WEPCo and the Mines,
and additional disputes have arisen in connection with the billing and payment
for services;

         WHEREAS, the parties have reached an agreement intended to address
billing and payment arrangements on an interim basis pending completion of the
Arbitration proceeding, and without prejudice to the parties' rights under the
PPAs;

         NOW THEREFORE, in consideration of the premises and the mutual promises
contained herein, the parties hereby agree to the following terms and
conditions:

          1.   RELEASE OF FUNDS FROM ESCROW

         Within two business days from the effective date of this Agreement,
WEPCo and Cliffs will deliver the "Notice of Interim Agreement and Joint
Instructions for Partial Disposition of Funds Held in Escrow," in the form
attached hereto as Exhibit A, to the escrow agent identified in the Escrow
Agreement attached hereto as Exhibit B. As specified in Exhibit A, this partial
disposition of funds from escrow shall be in the amount of $25,687,080.08
delivered to Tilden and the amount of $34,866,868.06 delivered to Empire. Within
two business days of the effective date of this

<PAGE>

Agreement, WEPCo shall also deliver to Tilden the amount of $4,756,336.54 and
deliver to Empire the amount of $6,479,494.86, pursuant to Section 4(b)(ii) of
the PPAs.

          2.   OVER-THE-CAP PAYMENTS

         The amounts released from escrow plus the amounts paid by WEPCo to the
Mines, as described in paragraph 1 above, represent a return to the Mines of the
following amounts due to the Mines pursuant to the Energy Price Cap provisions
in Section 4(b)(ii) of the parties' PPAs:

          A.   Over-the-cap payments that Cliffs has deposited into the escrow
               account described in Exhibit B for firm and curtailable service
               to the Empire Mine during the period from April 1, 2005, through
               December 31, 2005 ($34,866,868.06);

          B.   Over-the-cap payments that Cliffs has deposited into the escrow
               account described in Exhibit B for firm and curtailable service
               to the Tilden Mine during the period from April 1, 2005, through
               November 14, 2005 ($25,687,080.08);

          C.   Over-the-cap payments that Cliffs paid directly to WEPCo for firm
               and curtailable service to the Empire Mine during the period from
               January 1, 2005, through December 31, 2005 ($6,479,494.86);

          D.   Over-the-cap payments that Cliffs paid directly to WEPCo for firm
               and curtailable service to the Tilden Mine during the period from
               January 1, 2005, through November 14, 2005 ($4,756,336.54).

          3.   PAYMENT OF BILLS FOR SERVICE RENDERED IN FEBRUARY AND MARCH 2006

         Within five (5) business days after WEPCo complies fully with paragraph
1 above, the Mines will make the following payments related to energy delivered
to the Mines during the billing months of January, February and March of 2006:

          A.   The Mines will reverse the credits that were previously applied
               to these bills;

          B.   The Mines will make cash payments to WEPCo as follows: for
               February 2006 - Tilden $3,397,644.36 and Empire $3,401,843.13;
               and, for March 2006 - Tilden $4,089,984.58 and Empire
               $3,513,160.72 (for a total of $14,402,632.79); and

          C.   The Mines, acting through Cliffs, will deposit into the escrow
               account the following amounts that are disputed portions of the
               amounts billed for energy delivered: For January 2006 - Tilden
               $91,729.16 and Empire $89,009.67; for February 2006 - Tilden

                                       2
<PAGE>

               $1,906,815.51 and Empire $1,887,303.44; and for March 2006 -
               Tilden $2,849,058.27 and Empire $2,233,151.93 (for a total of
               $9,057,067.98).

          D.   The Mines, acting through Cliffs, will deposit into the escrow
               account the following late payment fees (billed as part of the
               April 2006 bills) for energy delivered during March 2006: Tilden
               $104,085.64 and Empire $86,194.69.

          4.  BILLINGS FOR ELECTRIC SERVICE PROVIDED ON AND AFTER APRIL 1, 2006

         With respect to electric service provided by WEPCo to the Mines
beginning on April 1, 2006, and continuing until such time as the Arbitrators
issue their award:

          A.   WEPCo will bill the Mines for energy delivered under firm and
               curtailable service up to the production limits specified in the
               PPAs at the applicable Energy Price Cap set forth in Section
               4(b)(ii) of the PPAs.

          B.   WEPCo will bill the Mines a Base Energy Cost for energy delivered
               under auxiliary service up to the production limits specified in
               the PPAs at the system average real time locational marginal
               prices (LMP) equal to .873 multiplied by the WEC South LMP plus
               .127 multiplied by the WEC North LMP.

          C.   The billings described in this section will be issued in
               accordance with WEPCo's normal billing schedule.

          D.   The Mines agree to pay directly to WEPCo the charges specified in
               this paragraph 4 in accordance with the normal monthly payment
               schedule. Both parties acknowledge that the billings and payments
               for auxiliary service, as specified herein, are disputed amounts
               and such payments will be subject to refund or additional charges
               upon resolution of the Arbitration proceeding via a future
               settlement agreement, arbitration decision or court order.

          E.   Demand and environmental remediation charges, losses, taxes and
               power movement and service fees shall continue to be governed by
               the existing terms and conditions of the PPAs.

          5.   INTEREST

          A.   Timely payments for service rendered on and after April 1, 2006,
               as provided in Paragraph 4 of this Agreement, shall not include
               interest.

          B.   Any refunds required by the Arbitrators' final award to the Mines
               of disputed amounts paid for energy delivered under auxiliary
               service pursuant to Paragraphs 3 and 4 of this Agreement shall
               bear interest at the rate otherwise applicable to funds held in
               escrow during the same period as specified in the Escrow
               Agreement, attached hereto as Exhibit B. Any additional charges
               due to WEPCo required by the Arbitrators' final award for energy
               delivered under auxiliary service pursuant to Paragraphs 3 and 4
               of

                                       3
<PAGE>

               this Agreement shall bear interest at the prime rate as specified
               in the PPAs and the Escrow Agreement.

          C.   The Arbitrators, as part and parcel of their final award, shall
               determine the manner in which interest is to be allocated and
               awarded to the Mines and to WEPCo with respect to any funds that
               have been placed into escrow by the Mines.

          6.   WAIVER AND DISCHARGE

         Upon the timely payment of the amounts set forth in Paragraph 3, above,
WEPCo expressly waives and forever discharges the Mines from any claim for
additional payments, damages or termination of the PPAs based upon the timing or
form of Mines' payment of the invoices for January, February, and March 2006;
however, the parties expressly acknowledge and agree that the issue of whether a
late fee is due pursuant to Section 11(a) of the PPAs with respect to such
payments remains a disputed issue to be resolved by the Arbitrators.

          7.   UNRESOLVED ISSUES

         The parties agree that this Interim Agreement does not finally resolve
any of the disputes between them, which are at issue in the Arbitration. Except
as provided otherwise in Paragraph 6, hereof, the billing and payment provisions
of this Agreement are expressly stated and recognized by all parties to be
without prejudice to any position any party may take in the pending Arbitration.

          8.   GENERAL PROVISIONS

         Any dispute under this Agreement shall be submitted to the Arbitrators,
and any arbitration award rendered in the Arbitration may be filed with the
appropriate court having jurisdiction and shall be enforced in accordance
therewith. The parties expressly acknowledge and agree that this Interim
Agreement shall be admissible before the Arbitrators only for the limited and
specific purpose of enforcing its terms and shall not be used or considered for
any other purpose. This Agreement shall be governed and interpreted in
accordance with the laws of the State of Michigan. This Agreement is not
intended to, and does not, amend the provisions of PPAs, but is designed to
direct the actions of WEPCo and Cliffs for the interim period, which runs from
the date when the

                                       4
<PAGE>

parties execute this Agreement through the date when the Arbitrators enter a
final opinion, with regards to interim payments during the pending Arbitration.
The first sentence of paragraph 2 of the parties' Escrow Agreement is hereby
amended to read as follows: "Once each month, on or before the due date for
Empire's and Tilden's monthly payments to WEPCo under the terms of the PPAs,
Cliffs shall deposit with and deliver to the Escrow Agent that portion of the
amounts billed by WEPCo that are in dispute, except for the disputed amounts
that Cliffs has agreed to pay to WEPCo under protest pursuant to the terms of
the Interim Agreement dated May 5, 2006." All of the terms and provisions of
this Agreement shall be binding upon and inure to the benefit of and be
enforceable by the respective heirs, representatives and successors of the
parties hereto. Any assignment of this Agreement must comply with the applicable
assignment provisions of the PPAs. No amendment to this Agreement shall be
effective unless made in writing and signed by duly authorized representatives
of each of the parties.

         IN WITNESS WHEREOF, the parties hereto, by their authorized
representatives, have executed this Agreement as set forth below.

WISCONSIN ELECTRIC POWER COMPANY        TILDEN MINING COMPANY, L.C.
                                        By The Cleveland-Cliffs Iron Mining
                                        Company, its Managing Agent

By:   /s/ James C. Fleming              By:   /s/ Joseph A. Carrabba
      -----------------------------           ----------------------------------

Its:  Executive Vice President &        Its:  President
      General Counsel                         ----------------------------------
      -----------------------------

Date: May 5, 2006                       Date: May 5, 2006
      -----------------------------           ----------------------------------

                                        EMPIRE IRON MINING PARTNERSHIP
                                        By The Cleveland-Cliffs Iron Mining
                                        Company, its Managing Agent

                                        By:   /s/ Joseph A. Carrabba
                                              ----------------------------------

                                        Its:  President
                                              ----------------------------------

                                        Date: May 5, 2006
                                              ----------------------------------

                                       5

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