Document:

EXHIBIT 4.1

 

As Amended

By the Board on May 23, 2011

 

CYBEROPTICS CORPORATION

1992 EMPLOYEE STOCK PURCHASE PLAN

 

ARTICLE I. INTRODUCTION

 

Section 1.01  Purpose. The purpose of the
CYBEROPTICS CORPORATION 1992 EMPLOYEE STOCK PURCHASE PLAN (the “Plan”) is to provide employees of CYBEROPTICS
CORPORATION, a Minnesota corporation (the “Company”), and certain related corporations with an opportunity to share
in the ownership of the Company by providing them with a convenient means for regular and systematic purchases of the Company's
Common Shares, without par value, and, thus, to develop a stronger incentive to work for the continued success of the Company.

 

Section 1.02  Rules of Interpretation. It
is intended that the Plan be an “employee stock purchase plan” as defined in Section 423(b) of the Internal Revenue
Code of 1986, as amended (the “Code”), and Treasury Regulations promulgated thereunder. Accordingly, the Plan shall
be interpreted and administered in a manner consistent therewith if so approved. All Participants in the Plan will have the same
rights and privileges consistent with the provisions of the Plan.

 

Section 1.03  Definitions. For purposes
of the Plan, the following terms will have the meanings set forth below:

 

(a)        “Acceleration
Date” means the earlier of the date of shareholder approval or approval by the Company's Board of Directors of (i) any
consolidation or merger of the Company in which the Company is not the continuing or surviving corporation or pursuant to which
Company Common Shares would be converted into cash, securities or other property, other than a merger of the Company in which shareholders
of the Company immediately prior to the merger have the same proportionate share ownership in the surviving corporation immediately
after the merger; (ii) any sale, exchange or other transfer (in one transaction or a series of related transactions) of all or
substantially all of the assets of the Company; or (iii) any plan of liquidation or dissolution of the Company.

 

(b)        “Affiliate”
means any subsidiary corporation of the Company, as defined in Section 424(f) of the Code, whether now or hereafter acquired or
established.

 

(c)        “Committee”
means the committee described in Section 10.01.

 

(d)        “Company”
means CyberOptics Corporation, a Minnesota corporation, any subsidiary of the Company and any successors to the Company by merger
or consolidation as contemplated by Article XI herein.

 

    	 

    	 

    

 

(e)        “Current
Compensation” means all regular wage, salary and commission payments paid by the Company to a Participant in accordance
with the terms of his or her employment, but excluding bonus payments and all other forms of special compensation.

 

(f)        “Fair
Market Value” as of a given date means such value of the Common Shares as reasonably determined by the Committee in a
manner consistent with Section 423 of the Code.

 

(g)        “Participant”
means a Full-Time Employee who is eligible to participate in the Plan under Section 2.01 and who has elected to participate in
the Plan.

 

(h)        “Participating
Affiliate” means an Affiliate which has been designated by the Committee in advance of the Purchase Period in question
as a corporation whose eligible Full-Time Employees may participate in the Plan.

 

(i)        “Full-Time
Employee” means an employee of the Company or a Participating Affiliate as of the first day of a Purchase Period, including
an officer or director who is also an employee, but excluding employees (I) whose customary employment is less than 20 hours per
week, (II) who have not yet completed six months of employment, or (III) whose customary employment is not more than 5 months in
a calendar year.

 

(j)        “Plan”
means the CyberOptics Corporation 1992 Employee Stock Purchase Plan, as amended, the provisions of which are set forth herein.

 

(k)        “Purchase
Period” means each of the 12-month periods beginning on the first business day in August of each year and ending on the
last business day in the following July, respectively.

 

(l)        “Common
Shares” means the Company's Common Shares, without par value, as such Shares may be adjusted for changes in the Shares
or the Company as contemplated by Article XI herein.

 

(m)        “Share
Purchase Account” means the account maintained on the books and records of the Company recording the amount received
from each Participant through payroll deductions made under the Plan and from the Company through matching contributions.

 

    	 

    	 

    

ARTICLE II. ELIGIBILITY AND PARTICIPATION

 

Section 2.01  Eligible Employees. All Full-Time
Employees shall be eligible to participate in the Plan beginning on the first day of the first Purchase Period to commence after
such person becomes a Full-Time Employee. Subject to the provisions of Article VI, each such employee will continue to be eligible
to participate in the Plan so long as he or she remains a Full-Time Employee.

 

Section 2.02  Election to Participate. An
eligible Full-Time Employee may elect to participate in the Plan for a given Purchase Period by filing with the Company, in advance
of that Purchase Period and in accordance with such terms and conditions as the Committee in its sole discretion may impose, a
form provided by the Company for such purpose (which authorizes regular payroll deductions from Current Compensation beginning
with the first payday in that Purchase Period and continuing until the employee withdraws from the Plan or ceases to be eligible
to participate in the Plan).

 

Section 2.03  Limits on Shares Purchased.
No employee shall be granted any right to purchase Common Shares hereunder if such employee, immediately after such a right to
purchase is granted, would own, directly or indirectly, within the meaning of Section 423(b)(3) and Section 424(d) of the Code,
Common Shares possessing 5% or more of the total combined voting power or value of all the classes of the capital shares of the
Company or of all Affiliates.

 

Section 2.04  Voluntary Participation. Participation
in the Plan on the part of a Participant is voluntary and such participation is not a condition of employment nor does participation
in the Plan entitle a Participant to be retained as an employee.

 

ARTICLE III. PAYROLL DEDUCTIONS, COMPANY

CONTRIBUTIONS AND SHARE PURCHASE ACCOUNT

 

Section 3.01  Deduction from Pay. The form
described in Section 2.02 will permit a Participant to elect payroll deductions of not less than 1% and not more than 10% of such
Participant's Current Compensation for each pay period, subject to the limitation that no more than $6,500 be contributed to the
Plan by any Participant in any purchase period and to such other limitations as the Committee in its sole discretion may impose.

 

Section 3.02  Interest and Company Contributions.
The Company may, in the sole discretion of and subject to such limitations as the Committee may impose, pay interest with respect
to each Participant's Share Purchase Account.

 

Section 3.03  Credit to Account. Payroll
deductions will be credited to the Participant's Share Purchase Account on each payday.

 

Section 3.04  Nature of Account. The Share
Purchase Account is established solely for accounting purposes, and all amounts credited to the Share Purchase Account will remain
part of the general assets of the Company or the Participating Affiliate (as the case may be).

 

    	 

    	 

    

 

Section 3.05  No Additional Contributions.
A Participant may not make any payment into the Share Purchase Account other than the payroll deductions made pursuant to the Plan.

 

ARTICLE IV. RIGHT TO PURCHASE SHARES

 

Section 4.01  Number of Shares. Each Participant
will have the right to purchase on the last business day of the Purchase Period all, but not less than all, of the largest number
of whole Common Shares that can be purchased at the price specified in Section 4.02 with the entire credit balance in the Participant's
Share Purchase Account, subject to the limitations that (a) no more than 10,000 Common Shares may be purchased under the Plan by
any one Participant for a given Purchase Period, (b) in accordance with Section 423(b)(8) of the Code, no more than $25,000 in
Fair Market Value (determined at the beginning of each Purchase Period) of Common Shares and other shares may be purchased under
the Plan and all other employee share purchase plans (if any) of the Company and the Affiliates by any one Participant for any
calendar year and (c) if the purchases for all Participants in any Purchase Period would result in the sale of more than 100,000
Common Shares in the aggregate under the Plan for such Purchase Period, each Participant shall be allocated a pro rata portion
of the 100,000 Common Shares to be sold for that Purchase Period. If the purchases for all Participants would otherwise cause the
aggregate number of Common Shares to be sold under the Plan to exceed the number specified in Section 10.03, each Participant shall
be allocated a pro rata portion of the Common Shares to be sold.

 

Section 4.02  Purchase Price. The purchase
price for any Purchase Period shall be the lesser of (a) 85% of the Fair Market Value of the Common Shares on the first business
day of that Purchase Period or (b) 85% of the Fair Market Value of the Common Shares on the last business day of that Purchase
Period, in each case rounded up to the next higher full cent.

 

ARTICLE V. EXERCISE OF RIGHT

 

Section 5.01  Purchase of Shares. On the
last business day of a Purchase Period, the entire credit balance in each Participant's Share Purchase Account will be used to
purchase the largest number of whole Common Shares purchasable with such amount (subject to the limitations of Section 4.01), unless
the Participant has filed with the Company, in advance of that date and subject to such terms and conditions as the Committee in
its sole discretion may impose, a form provided by the Company which requests the distribution of the entire credit balance in
cash.

 

Section 5.02  Cash Distributions. Any amount
remaining in a Participant's Share Purchase Account after the last business day of a Purchase Period will be paid to the Participant
in cash in a timely fashion after the end of that Purchase Period.

 

Section 5.03  Notice of Acceleration Date.
The Company shall use its best efforts to notify each Participant in writing at least ten days prior to any Acceleration Date that
the then current Purchase Period will end on such Acceleration Date.

 

    	 

    	 

    

ARTICLE VI. WITHDRAWAL FROM PLAN; SALE OF
SHARES

 

Section 6.01  Voluntary Withdrawal. A Participant
may, in accordance with such terms and conditions as the Committee in its sole discretion may impose, withdraw from the Plan and
cease making payroll deductions by filing with the Company a form provided for this purpose. In such event, the entire credit balance
in the Participant's Share Purchase Account will be paid to the Participant in cash within 30 days. A Participant who withdraws
from the Plan will not be eligible to reenter the Plan until the beginning of the next Purchase Period following the date of such
withdrawal.

 

Section 6.02  Death. Subject to such terms
and conditions as the Committee in its sole discretion may impose, upon the death of a Participant, no further amounts shall be
credited to the Participant's Share Purchase Account. Thereafter, on the last business day of the Purchase Period during which
such Participant's death occurred and in accordance with Section 5.01, the entire credit balance in such Participant's Share Purchase
Account will be used to purchase Common Shares, unless such Participant's estate has filed with the Company, in advance of that
day and subject to such terms and conditions as the Committee in its sole discretion may impose, a form provided by the Company
which elects to have the entire credit balance in such Participant's Shares Account distributed in cash within 30 days after the
end of that Purchase Period or at such earlier time as the Committee in its sole discretion may decide. Each Participant, however,
may designate one or more beneficiaries who, upon death, are to receive the Common Shares or the amount that otherwise would have
been distributed or paid to the Participant's estate and may change or revoke any such designation from time to time. No such designation,
change or revocation will be effective unless made by the Participant in writing and filed with the Company during the Participant's
lifetime. Unless the Participant has otherwise specified the beneficiary designation, the beneficiary or beneficiaries so designated
will become fixed as of the date of the death of the Participant so that, if a beneficiary survives the Participant but dies before
the receipt of the payment due such beneficiary, the payment will be made to such beneficiary's estate.

 

Section 6.03  Termination of Employment.
Subject to such terms and conditions as the Committee in its sole discretion may impose, upon a Participant's normal or early retirement
with the consent of the Company under any pension or retirement plan of the Company or Participating Affiliate, no further amounts
shall be credited to the Participant's Share Purchase Account. Thereafter, on the last business day of the Purchase Period during
which such Participant's approved retirement occurred and in accordance with Section 5.01, the entire credit balance in such Participant's
Share Purchase Account will be used to purchase Common Shares, unless such Participant has filed with the Company, in advance of
that day and subject to such terms and conditions as the Committee in its sole discretion may impose, a form provided by the Company
which elects to receive the entire credit balance in such Participant's Share Purchase Account in cash within 30 days after the
end of that Purchase Period, provided that such Participant shall have no right to purchase Common Shares in the event that the
last day of such a Purchase Period occurs more than three months following the termination of such Participant's employment with
the Company by reason of such an approved retirement. In the event of any other termination of employment (other than death) with
the Company or a Participating Affiliate, participation in the Plan will cease on the date the Participant ceases to be a Full-Time
Employee for any reason. In such event, the entire credit balance in such Participant's Share Purchase Account will be paid to
the Participant in cash within 30 days. For purposes of this Section 6.03, a transfer of employment to any Affiliate, or a leave
of absence which has been approved by the Committee, will not be deemed a termination of employment as a Full-Time Employee.

 

    	 

    	 

    

ARTICLE VII. NONTRANSFERABILITY

 

Section 7.01  Nontransferable Right to Purchase.
The right to purchase Common Shares hereunder may not be assigned, transferred, pledged or hypothecated (whether by operation of
law or otherwise), except as provided in Section 6.02, and will not be subject to execution, attachment or similar process. Any
attempted assignment, transfer, pledge, hypothecation or other disposition or levy of attachment or similar process upon the right
to purchase will be null and void and without effect.

 

Section 7.02  Nontransferable Account. Except
as provided in Section 6.02, the amounts credited to a Share Purchase Account may not be assigned, transferred, pledged or hypothecated
in any way, and any attempted assignment, transfer, pledge, hypothecation or other disposition of such amounts will be null and
void and without effect.

 

ARTICLE VIII. SHARE CERTIFICATES

 

Section 8.01  Delivery. Promptly after the
last day of each Purchase Period and subject to such terms and conditions as the Committee in its sole discretion may impose, the
Company will cause to be delivered to or for the benefit of the Participant a certificate representing the Common Shares purchased
on the last business day of such Purchase Period.

 

Section 8.02  Securities Laws. The Company
shall not be required to issue or deliver any certificate representing Common Shares prior to registration under the Securities
Act of 1933, as amended, or registration or qualification under any state law if such registration is required. The Company shall
use its best efforts to accomplish such registration (if and to the extent required) not later than a reasonable time following
the Purchase Period, and delivery of certificates may be deferred until such registration is accomplished.

 

Section 8.03  Completion of Purchase. A
Participant shall have no interest in the Common Shares purchased until a certificate representing the same is issued to or for
the benefit of the Participant.

 

Section 8.04  Form of Ownership. The certificates
representing Common Shares issued under the Plan will be registered in the name of the Participant.

 

ARTICLE IX. EFFECTIVE DATE, AMENDMENT AND

TERMINATION OF PLAN

 

Section 9.01  Effective Date. The Plan as
amended, was approved by the Board of Directors on February 14, 2011, and by the shareholders of the Company on May 23,2011. The
Plan will terminate upon completion of the Purchase Period which ends on the first business day occurring on or after July 31,
2021.

 

Section 9.02  Plan Commencement. The initial
Purchase Period under the Plan will commence on August 3, 1992. Thereafter, each succeeding Purchase Period will commence and terminate
in accordance with Section 1.03(k).

 

Section 9.03  Powers of Board. The Board
of Directors may amend or discontinue the Plan at any time. No amendment or discontinuation of the Plan, however, shall without
shareholder approval be made that: (i) absent such shareholder approval, would cause Rule 16b-3 under the Securities Exchange Act
of 1934, as amended (the “Act”) to become unavailable with respect to the Plan, (ii) requires shareholder approval
under any rules or regulations of the National Association of Securities Dealers, Inc. or any securities exchange that are applicable
to the Company, or (iii) permit the issuance of Common Shares before payment therefor in full

 

Section 9.04  Automatic Termination. The
Plan shall automatically terminate when all of the Common Shares provided for in Section 10.03 have been sold.

 

    	 

    	 

    

ARTICLE X. ADMINISTRATION

 

Section 10.01  The Committee. The Plan shall
be administered by a committee (the “Committee”) of two or more directors of the Company, none of whom shall be officers
or employees of the Company and all of whom shall be “disinterested persons” with respect to the Plan within the meaning
of Rule 16b-3 under the Act. The members of the Committee shall be appointed by and serve at the pleasure of the Board of Directors.

 

Section 10.02  Powers of Committee. Subject
to the provisions of the Plan, the Committee shall have full authority to administer the Plan, including authority to interpret
and construe any provision of the Plan, to establish deadlines by which the various administrative forms must be received in order
to be effective, and to adopt such other rules and regulations for administering the Plan as it may deem appropriate. The Committee
shall have full and complete authority to determine whether all or any part of the Common Shares acquired pursuant to the Plan
shall be subject to restrictions on the transferability thereof or any other restrictions affecting in any manner a Participant's
rights with respect thereto but any such restrictions shall be contained in the form by which a Participant elects to participate
in the Plan pursuant to Section 2.02. Decisions of the Committee will be final and binding on all parties who have an interest
in the Plan.

 

Section 10.03  Shares to be Sold. The Common
Shares to be issued and sold under the Plan may be treasury shares or authorized but unissued shares, or the Company may purchase
Common Shares in the market for sale under the Plan. Except as provided in Section 11.01, the aggregate number of Common Shares
to be sold under the Plan from the date of initial adoption will not exceed 1,050,000 shares.

 

Section 10.04  Notices. Notices to the Committee
should be addressed as follows:

 

Compensation Committee

CyberOptics Corporation

5900 Golden Hills Drive

Golden Valley, MN 55416

 

ARTICLE XI. ADJUSTMENT FOR CHANGES

IN SHARES OR COMPANY

 

Section 11.01  Share Dividend or Reclassification.
If the outstanding Common Shares are increased, decreased, changed into or exchanged for a different number or kind of securities
of the Company, or shares of a different par value or without par value, through reorganization, recapitalization, reclassification,
share dividend, share split, amendment to the Company's Articles of Incorporation, reverse share split or otherwise, an appropriate
adjustment shall be made in the maximum numbers and kind of securities to be purchased under the Plan with a corresponding adjustment
in the purchase price to be paid therefor.

 

Section 11.02  Merger or Consolidation.
If the Company is merged into or consolidated with one or more corporations during the term of the Plan, appropriate adjustments
will be made to give effect thereto on an equitable basis in terms of issuance of shares of the corporation surviving the merger
or of the consolidated corporation, as the case may be.

 

ARTICLE XII. APPLICABLE LAW

 

Rights to purchase Common Shares granted under
the Plan shall be construed and shall take effect in accordance with the laws of the State of Minnesota.ex41to10q06447_06302011.htm

Exhibit 4.1

 

AMENDMENT NO. 2 TO

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

AMENDMENT NO. 2 TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of August 5, 2011, by and among Handy & Harman Group Ltd., a Delaware corporation (“Parent”), Handy & Harman, a New York corporation (“Handy”), OMG, Inc., a Delaware corporation (“OMG”), Camdel Metals Corporation, a Delaware corporation (“Camdel”), Canfield Metal Coating Corporation, a Delaware corporation (“Canfield”), Continental Industries, Inc., an Oklahoma corporation (“Continental”), Indiana Tube Corporation, a Delaware corporation (“Indiana Tube”), Lucas-Milhaupt, Inc., a Wisconsin corporation (“Lucas”), Micro-Tube Fabricators, Inc., a Delaware corporation (“Micro-Tube”), Maryland Specialty Wire, Inc., a Delaware corporation (“Maryland Wire”), Handy & Harman Tube Company, Inc., a Delaware corporation (“H&H Tube”), Handy & Harman Electronic Materials Corporation, a Florida corporation (“H&H Electronic”), Ocmus, Inc., formerly known as Sumco Inc., an Indiana corporation (“Ocmus”), OMG Roofing, Inc., a Delaware corporation (“OMG Roofing”), OMNI Technologies Corporation of Danville, a New Hampshire corporation (“OMNI”), Bairnco Corporation, a Delaware corporation (“Bairnco”), Arlon LLC, a Delaware limited liability company, formerly known as Arlon, Inc. (“Arlon”), Arlon Viscor Ltd., a Texas limited partnership (“Arlon Viscor”), Arlon Signtech, Ltd., a Texas limited partnership (“Arlon Signtech”), Kasco Corporation, a Delaware corporation (“Kasco”), Southern Saw Acquisition Corporation, a Delaware corporation (“Southern” and together with Parent, Handy, OMG, Camdel, Canfield, Continental, Indiana Tube, Lucas, Micro-Tube, Maryland Wire, H&H Tube, H&H Electronic, Ocmus, OMG Roofing, OMNI, Bairnco, Arlon, Arlon Viscor, Arlon Signtech and Kasco, individually each, a “Borrower” and collectively, “Borrowers”), Handy & Harman of Canada, Limited, an Ontario corporation (“H&H Canada”), Handy & Harman International, Ltd., a Delaware corporation (“H&H International”), ele Corporation, a California corporation (“ele”), Alloy Ring Service Inc., a Delaware corporation (“Alloy”), Daniel Radiator Corporation, a Texas corporation (“Daniel”), H&H Productions, Inc., a Delaware corporation (“H&H Productions”), Handy & Harman Automotive Group, Inc., a Delaware corporation (“H&H Auto”), Handy & Harman Peru, Inc., a Delaware corporation (“H&H Peru”), KJ-VMI Realty, Inc., a Delaware corporation (“KVR”), Pal-Rath Realty, Inc., a Delaware corporation (“Pal-Rath”), Platina Laboratories, Inc., a Delaware corporation (“Platina”), Sheffield Street Corporation, a Connecticut corporation (“Sheffield”), SWM, Inc., a Delaware corporation (“SWM”), Willing B Wire Corporation, a Delaware corporation (“Willing”), The 7 Orne Street Nominee Trust, a Massachusetts nominee trust (“Orne Street Trust”), The 28 Grant Street Nominee Trust, a Massachusetts nominee trust (“28 Grant Street Trust”), 20 Grant Street Nominee Trust, a Massachusetts nominee trust (“20 Grant Street Trust”), Arlon Partners, Inc., a Delaware corporation (“Arlon Partners”), Arlon MED International LLC, a Delaware limited liability company (“Arlon MED”), Arlon Adhesives & Films, Inc., a Texas corporation (“Arlon Adhesives”), Kasco Mexico LLC, a Delaware limited liability company (“Kasco Mexico”), Atlantic Service Company, Limited, an Ontario corporation (“Atlantic” and together with H&H Canada, H&H International, ele, Alloy, Daniel, H&H Productions, H&H Auto, H&H Peru, KVR, Pal-Rath, Platina, Sheffield, SWM, Willing, Orne Street Trust, 28 Grant Street Trust, 20 Grant Street Trust, Arlon Partners, Arlon MED, Arlon Adhesives and Kasco Mexico, individually each, a “Guarantor”, and collectively, “Guarantors”), Wells Fargo Bank, National Association, a national banking association, successor by merger to Wachovia Bank, National Association, successor by merger to Congress Financial Corporation, in its capacity as agent pursuant to the Loan Agreement (as hereinafter defined) acting for the financial institutions party thereto as lenders (in such capacity, together with its successors and assigns, “Agent”), and the financial institutions party thereto as lenders (collectively, “Lenders”).

 

  

  

  

 

W I T N E S S E T H:

WHEREAS, Agent, Lenders, Borrowers and Guarantors have entered into financing arrangements pursuant to which Lenders (or Agent on behalf of Lenders) have made and provided and may hereafter make and provide loans, advances and other financial accommodations to Borrowers as set forth in the Amended and Restated Loan and Security Agreement, dated October 15, 2010, as amended by Amendment No. 1 to Amended and Restated Loan and Security Agreement, dated as of May 10, 2011, among Agent, Lenders, Borrowers and Guarantors (as the same may hereafter be further amended, modified, supplemented, extended, renewed, restated or replaced, the “Loan Agreement”), and the other agreements, documents and instruments referred to therein or at any time executed and/or delivered in connection therewith or related thereto (all of the foregoing, together with the Loan Agreement, as the same now exist or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, being collectively referred to herein as the “Financing Agreements”);

WHEREAS, Borrowers have requested that Agent and Lenders make certain amendments to the Loan Agreement, and Agent and Lenders are willing to make such amendments, subject to terms and conditions set forth herein; and

WHEREAS, by this Amendment, Borrowers, Guarantors, Agent and Lenders desire and intend to evidence such amendments;

NOW THEREFORE, in consideration of the foregoing, and the respective agreements and covenants contained herein, the parties hereto agree as follows:

1.  Definitions.

(a)  Additional Definitions.  As used herein, the following terms shall have the following meanings given to them below, and the Loan Agreement and the other Financing Agreements are hereby amended to include, in addition and not in limitation, the following:

(i)   “Amendment No. 2” shall mean Amendment No. 2 to Amended and Restated Loan and Security Agreement by and among Borrowers, Guarantors, Agent and Lenders.

(ii)   “Amendment No. 2 Effective Date” shall mean the first date on which all of the conditions precedent to the effectiveness of Amendment No. 2 shall have been satisfied or shall have been waived by Agent.

(iii)   “Factor” shall mean any Person that purchases Specified Factored Accounts from a Borrower pursuant to the applicable Factoring Documents in accordance with Section 9.7(b)(xi) hereof.

(iv)   “Factoring Documents” shall mean, collectively, all of the agreements, documents and instruments related to the sale by any Borrower of Specified Factored Accounts in accordance with Section 9.7(b)(xi) hereof.

(v)   “Specified Factored Accounts” shall mean those Accounts owing by an account debtor to a Borrower which are sold by such Borrower to a Factor pursuant to the applicable Factoring Documents in accordance with Section 9.7(b)(xi) hereof.

  

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(vi)   “Specified Transaction Conditions” shall mean, with respect to any of the Specified Transactions, the following conditions:

(a)  as of the date of any Specified Transaction and immediately after giving effect thereto, no Default or Event of Default shall exist or shall have occurred and be continuing;

(b)  the average Excess Availability for the thirty (30) day period immediately preceding the date of any such Specified Transaction shall not be less than $15,000,000; and

(c)  as of the date of any such Specified Transaction and immediately after giving effect thereto, Excess Availability shall not be less than $15,000,000.

(vii)   “Specified Transaction Limit” shall mean, during the term of this Agreement, the amount of $10,000,000.

(viii)   “Specified Transactions” shall mean, collectively, the following: (a) the payment of any Indebtedness contemplated by Section 9.9(g)(iv) hereof in accordance with the terms of the Subordinated Noteholder Intercreditor Agreement, (b) the redemption, retirement, defeasance, purchase or other acquisition of any Indebtedness contemplated by Section 9.9(g)(v)(B) hereof in accordance with the terms of the Subordinated Noteholder Intercreditor Agreement, (c) the payment of any dividends or the redemption or repurchase of any Capital Stock contemplated by Sections 9.11(d) and 9.11(e) hereof, and (d) any other payment or action the permissibility of which is subject to the satisfaction of the “Specified Transaction Conditions”.

(b)  Amendments to Definitions.

(i)   Eligible Accounts.  The definition of “Eligible Accounts” in Section 1.42 of the Loan Agreement is hereby amended by deleting clause (r) of such definition in its entirety and replacing it with the following:

“(r)  such Accounts are not Specified Factored Accounts; and”.

(ii)   Subordinated Noteholder Intercreditor Agreement.  The definition of “Subordinated Noteholder Intercreditor Agreement” in Section 1.173 of the Loan Agreement is hereby amended by deleting such definition in its entirety and replacing it with the following:

“1.173  ‘Subordinated Noteholder Intercreditor Agreement’ shall mean the Intercreditor and Subordination Agreement, dated October 15, 2010, as amended by Amendment No. 1 to Intercreditor and Subordination Agreement, dated as of the Amendment No. 2 Effective Date, by and among Agent, Term B Loan Agent and Subordinated Note Trustee, as acknowledged and agreed by Borrowers and Guarantors, as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced.”

 

  

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(iii)   WHX.  The definition of “WHX” in Section 1.198 of the Loan Agreement is hereby amended by deleting such definition in its entirety and replacing it with the following:

“1.198  ‘WHX’ shall mean Handy & Harman Ltd., a Delaware corporation, formerly known as WHX Corporation, and its successors and assigns.”

(c)  Interpretation.  Capitalized terms used herein which are not otherwise defined herein shall have the respective meanings ascribed thereto in the Loan Agreement.

2.  Sales of Assets.  Section 9.7(b)(xi) of the Loan Agreement is hereby amended by deleting such Section in its entirety and replacing it with the following:

“(xi) on and after the Amendment No. 2 Effective Date, sales of Specified Factored Accounts by Borrowers to a Factor, so long as the following terms and conditions are satisfied as determined by Agent: (A) the aggregate face amount of Specified Factored Accounts which may be sold by Borrowers shall not exceed $20,000,000 during any fiscal year; (B) any sale or transfer of Specified Factored Accounts shall be without any recourse, offset or claim of any kind or nature to or against any Borrower, any Guarantor, Agent or any Lender; (C) Agent shall have received, in form and substance satisfactory to Agent, true, correct and complete copies of the applicable Factoring Documents, duly authorized, executed and delivered by the parties thereto; (D) further sales of the Specified Factored Accounts pursuant to the applicable Factoring Documents will cease upon a written notice by Agent to Administrative Borrower of a Default or Event of Default; (E) no Borrower or Guarantor shall, directly or indirectly, amend, modify, alter or change any of the terms of the Factoring Documents in any manner that is adverse to the interests of Borrowers, Guarantors, Agent or Lenders in any material respect without the prior written consent of Agent; and (F) Borrowers and Guarantors shall furnish to Agent all notices or demands (if any) in connection with the arrangements made by Borrowers pursuant to the applicable Factoring Documents either received by any Borrower or Guarantor or on its behalf, promptly after receipt thereof, or sent by any Borrower or Guarantor or on its behalf, concurrently with the sending thereof, as the case may be;”.

3.  Encumbrances.  Section 9.8(r) of the Loan Agreement is hereby amended by deleting such Section in its entirety and replacing it with the following:

“(r)  the security interests of a Factor in the Specified Factored Accounts sold by a Borrower to such Factor in accordance with Section 9.7(b)(xi) hereof;”.

4.  Dividends and Redemptions.

(a)  Section 9.11(d) of the Loan Agreement is hereby amended by deleting clause (iv) of such Section in its entirety and replacing it with the following:

“(iv)  the aggregate amount of all payments for such repurchases in any calendar year shall not exceed $250,000, provided, that, notwithstanding the foregoing, the amount of such payments may exceed $250,000 so long as (A) with respect to any such payments in excess of $250,000, the Specified Transaction Conditions have been satisfied, and (B) the amount of any such payments in excess of $250,000 shall not cause the aggregate amount of all Specified Transactions during the term of this Agreement to exceed the Specified Transaction Limit.”

 

  

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(b)  Section 9.11 of the Loan Agreement is hereby further amended by (a) deleting the period appearing at the end of subsection (d) of such Section and replacing it with “; and”, and (b) adding the following new subsection (e) at the end of such Section:

“(e) Borrowers and Guarantors may pay dividends to or redeem Capital Stock of WHX so long as (i) the Specified Transaction Conditions have been satisfied, and (ii) the amount of any such dividends or redemptions shall not cause the aggregate amount of all Specified Transactions during the term of this Agreement to exceed the Specified Transaction Limit.”

5.  Additional Guaranties and Collateral Security.  Section 9.18(a) of the Loan Agreement is hereby amended by deleting the reference to “each Subsidiary of any Borrower not in existence on the date hereof” and replacing it with “each Subsidiary of any Borrower not in existence on the date hereof (other than any such Subsidiary organized outside of the United States or Canada)”.

6.  Other Agent Designations.

(a)  Section 12 of the Loan Agreement is hereby amended by inserting the following new Section 12.16 at the end of such Section:

“12.16  Other Agent Designations.  Agent may at any time and from time to time determine that a Lender may, in addition, be a “Co-Agent”, “Syndication Agent”, “Documentation Agent” or similar designation hereunder and enter into an agreement with such Lender to have it so identified for purposes of this Agreement.  Any such designation shall be effective upon written notice by Agent to Administrative Borrower of any such designation.  Any Lender that is so designated as a Co-Agent, Syndication Agent, Documentation Agent or such similar designation by Agent shall have no right, power, obligation, liability, responsibility or duty under this Agreement or any of the other Financing Agreements other than those applicable to all Lenders as such.  Without limiting the foregoing, the Lenders so identified shall not have or be deemed to have any fiduciary relationship with any Lender and no Lender shall be deemed to have relied, nor shall any Lender  rely, on a Lender so identified as a Co-Agent, Syndication Agent, Documentation Agent or such similar designation in deciding to enter into this Agreement or in taking or not taking action hereunder.”

(b)  As of the Amendment No. 2 Effective Date, Bank of America, N.A. (“BofA”) is designated as “Syndication Agent” under the Financing Agreements.  BofA shall have no right, power, obligation, liability, responsibility or duty under the Loan Agreement or any of the other Financing Agreements other than those applicable to all Lenders as such.  Without limiting the foregoing, BofA shall not have or be deemed to have any fiduciary relationship with any Lender and no Lender shall be deemed to have relied, nor shall any Lender rely, on BofA in deciding to enter into this Amendment No. 2 or in taking or not taking action hereunder, under the Loan Agreement or any of the other Financing Agreements.

7.  Term.  Section 13.1 of the Loan Agreement is hereby amended by deleting the reference to “June 30, 2012” and replacing it with “June 28, 2013”.

8.  Cover Page to Loan Agreement.  The cover page to the Loan Agreement is hereby deleted in its entirety and replaced with the corresponding cover page in the form attached hereto as Schedule A.

 

  

5

  

9.  Mexican Subsidiaries.

(a)  Effective as of the Amendment No. 2 Effective Date, (a) Indiana Tube Solutions de Mexico S. de R.L. de CV, a Mexican corporation (“Indiana Tube Mexico”), and Kasco Ensambly S.A. de C.V., a Mexican corporation (“Kasco Ensambly” and together with Indiana Tube Mexico, individually each, a “Mexican Subsidiary”, and collectively, “Mexican Subsidiaries”), shall cease to be “Guarantors” under the Loan Agreement and the other Financing Agreements, (b) all security interests and liens upon any and all properties and assets of the Mexican Subsidiaries heretofore granted by the Mexican Subsidiaries to Agent pursuant to the Financing Agreements shall be deemed released and terminated, (c) the Mexican Subsidiaries shall be deemed released from all obligations and liabilities under the Financing Agreements, and (d) each Mexican Subsidiary hereby releases, discharges and acquits Agent, Lenders, and their respective officers, directors, agents and employees and its and their respective successors and assigns, from all obligations to any Mexican Subsidiary (and its respective successors and assigns) and from any and all claims, demands, debts, accounts, contracts, liabilities, actions and causes of actions, whether in law or in equity, that any Mexican Subsidiary at any time had or has, or that its successors and assigns hereafter can or may have against Agent, Lenders and their respective officers, directors, agents or employees and its and their respective successors and assigns.

(b)  Notwithstanding anything to the contrary set forth in the letter agreement, dated October 15, 2010, as heretofore amended, among Agent, Borrowers and Guarantors with respect to the delivery of certain post-closing items and the compliance with certain post-closing covenants (the “Post-Closing Letter”), Agent and Lenders hereby agree that Borrowers and Guarantors shall not be required to deliver to Agent the items set forth in Sections 1(a) through 1(q) of the Post-Closing Letter and/or comply with the covenants set forth in such Sections.

10.  Real Property Covenants.  Within thirty (30) days following the Amendment No. 2 Effective Date, Borrowers shall deliver to Agent, in form and substance satisfactory to Agent, a valid and effective pro forma endorsement to the title insurance policy with respect to the Mortgage by Indiana Tube in favor of Agent in respect of the Real Property located in Evansville, Indiana.

11.  Conditions Precedent.  The provisions contained herein shall only be effective upon the satisfaction of each of the following conditions precedent in a manner satisfactory to Agent:

(a)  Agent shall have received this Amendment, duly authorized, executed and delivered by Borrowers, Guarantors and all of the Lenders;

(b)  Agent shall have received, in form and substance satisfactory to Agent, Amendment No. 1 to the Subordinated Noteholder Intercreditor Agreement, duly authorized, executed and delivered by Term B Loan Agent and Subordinated Note Trustee and acknowledged and agreed by Borrowers and Guarantors;

(c)  Agent shall have received, in form and substance satisfactory to Agent, (i) a modification with respect to the Mortgage by Indiana Tube in favor of Agent with respect to the Real Property located in Evansville, Indiana, and (ii) a modification with respect to the Mortgage by Handy in favor of Agent with respect to the Real Property located in Fairfield, Connecticut, in each case providing for, among other things, the extension of the Termination Date as contemplated by this Amendment, and such other matters as Agent may request;

(d)  Agent shall have received, in form and substance satisfactory to Agent, a true and correct copy of an amendment to the Term B Loan Agreement providing for, among other things, the extension of the maturity date of the Term B Loan Agreement to June 28, 2013 and such other matters as Agent shall require;

 

  

6

  

(e)  Agent shall have received, in form and substance satisfactory to Agent, all consents, waivers, acknowledgments, estoppels and other agreements from third persons which Agent may deem necessary or desirable in order to permit, protect and perfect its security interests in and liens upon the Collateral or to effectuate the provisions or purposes of this Amendment and the other Financing Agreements executed and delivered in connection herewith or related hereto (collectively, the “Amendment Documents”); and

(f)  no Default or Event of Default shall exist or shall have occurred and be continuing immediately before and after giving effect hereto.

12.  Representations and Warranties.  Each Borrower and Guarantor hereby represents and warrants to Agent and Lenders the following (which shall survive the execution and delivery of this Amendment), the truth and accuracy of which representations and warranties are a continuing condition of the making of Loans and providing Letter of Credit Accommodations to Borrowers:

(a)  each Borrower and Guarantor is duly organized and in good standing under the laws of its jurisdiction of incorporation or formation and each Borrower and Guarantor is duly qualified as a foreign corporation, limited liability company or trust and is in good standing in all states, provinces or other jurisdictions where the nature and extent of the business transacted by it or the ownership of assets makes such qualification necessary, except for those jurisdictions in which the failure to so qualify would not have a Material Adverse Effect, and each of Orne Street Trust, 28 Grant Street Trust and 20 Grant Street Trust is duly organized under the laws of the Commonwealth of Massachusetts;

(b)  this Amendment and each of the other Amendment Documents has been duly authorized, executed and delivered by all necessary action on the part of each Borrower and Guarantor and, if necessary, its stockholders or holders of beneficial interests, as applicable, and is in full force and effect as of the date hereof, and the agreements and obligations of each Borrower and Guarantor contained herein and therein constitute the legal, valid and binding obligations of such Borrower or Guarantor, enforceable against it in accordance with their terms, except as enforceability is limited by bankruptcy, insolvency, moratorium or other similar laws affecting creditors’ rights generally and by general equitable principles;

(c)  the execution, delivery and performance of this Amendment and each of the other Amendment Documents (i) are all within each Borrower’s and Guarantor’s corporate, limited liability company or trust powers and (ii) are not in contravention of law or the terms of any Borrower’s or Guarantor’s certificate or articles of incorporation or formation, by laws, operating agreement, trust agreement, or other organizational documentation, or any indenture, agreement or undertaking to which any Borrower or Guarantor is a party or by which any Borrower or Guarantor or its property are bound (including, without limitation, the Term B Loan Financing Agreements, the Subordinated Note Documents and the WHX Subordinated Note Documents);

(d)  neither the execution and delivery of this Amendment and the other Amendment Documents, nor the consummation of the transactions contemplated hereby or thereby, nor compliance with the provisions hereof or thereof (i) has resulted in or shall result in the creation or imposition of any Lien upon any of the Collateral; (ii) has resulted in or shall result in the incurrence, creation or assumption of any Indebtedness of any Borrower or Guarantor; (iii) has violated or shall violate any applicable laws or regulations or any order or decree of any court or Governmental Authority in any respect; (iv) does or shall conflict with or result in the breach of, or constitute a default in any respect under any material mortgage, deed of trust, security agreement, agreement or instrument to which any Borrower or Guarantor is a party or may be bound (including without limitation the Term B Loan Financing Agreements, the Subordinated Note Documents and the WHX Subordinated Note Documents), and (v) violates or shall violate any provision of the certificate of incorporation or formation, by-laws, trust agreement or other organizational documentation of any Borrower or Guarantor;

 

  

7

  

 

(e)  no action of, or filing with, or consent of any Governmental Authority, and no consent, waiver or approval of any other third party (including, without limitation, Term B Loan Agent, Term B Loan Lenders, Subordinated Note Trustee, Subordinated Noteholders and/or WHX) that has not been obtained is required to authorize, or is otherwise required in connection with, the execution, delivery and performance of this Amendment or any of the other Amendment Documents;

(f)  all of the representations and warranties set forth in the Loan Agreement and the other Financing Agreements, each as amended hereby, are true and correct in all material respects on and as of the date hereof as if made on the date hereof, except to the extent any such representation or warranty is made as of a specified date, in which case such representation or warranty shall have been true and correct in all material respects as of such date; and

(g)  after giving effect to this Amendment, no Default or Event of Default exists or has occurred and is continuing on the date hereof.

13.  Effect of this Agreement.  Except as expressly amended pursuant hereto, no other changes, waivers or modifications to the Financing Agreements are intended or implied, and in all other respects the Financing Agreements are hereby specifically ratified, restated and confirmed by all parties hereto as of the date hereof.  To the extent that any provision of the Loan Agreement or any of the other Financing Agreements are inconsistent with the provisions of this Amendment, the provisions of this Amendment shall control.

14.  Further Assurances.  Borrowers and Guarantors shall execute and deliver such additional documents and take such additional action as may be requested by Agent to effectuate the provisions and purposes hereof.

15.  Governing Law.  The validity, interpretation and enforcement of this Amendment and any dispute arising out of the relationship between the parties hereto or thereto, whether in contract, tort, equity or otherwise, shall be governed by the internal laws of the State of New York but excluding any principles of conflicts of law or other rule of law that would cause the application of the law of any jurisdiction other than the laws of the State of New York.

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

17.  Counterparts.  This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of this Amendment by telefacsimile or other electronic method of transmission shall have the same force and effect as the delivery of an original executed counterpart of this Amendment.  Any party delivering an executed counterpart of this Amendment by telefacsimile or other electronic method of transmission shall also deliver an original executed counterpart, but the failure to do so shall not affect the validity, enforceability or binding effect of this Amendment.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

  

8

  

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed on the day and year first above written.

	  	
AGENT AND LENDERS

	  	  
	  	
WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Agent and a Lender

	  	  
	  	
By:

	

/s/ Sang H. Kim

	  	
Name:

	
Sang H. Kim

	  	
Title:

	
Vice President

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

	  	  
	  	
By:

	

/s/ Cynthia G. Stannard

	  	
Name:

	Cynthia G. Stannard
	  	
Title:

	Sr. Vice President

 

[SIGNATURE PAGES CONTINUE ON NEXT PAGE]

 

  

  

  

 

[SIGNATURE PAGES CONTINUED FROM PREVIOUS PAGE]

	  	
BORROWERS

	  	  
	  	
HANDY & HARMAN GROUP LTD.

HANDY & HARMAN

OMG, INC.

CAMDEL METALS CORPORATION

CANFIELD METAL COATING CORPORATION

CONTINENTAL INDUSTRIES, INC.

INDIANA TUBE CORPORATION

LUCAS-MILHAUPT, INC.

MICRO-TUBE FABRICATORS, INC.

MARYLAND SPECIALTY WIRE, INC.

HANDY & HARMAN TUBE COMPANY, INC.

HANDY & HARMAN ELECTRONIC MATERIALS CORPORATION

OCMUS, INC.

OMG ROOFING, INC.

OMNI TECHNOLOGIES CORPORATION OF DANVILLE

BAIRNCO CORPORATION

ARLON LLC

ARLON VISCOR LTD.

ARLON SIGNTECH, LTD.

KASCO CORPORATION

SOUTHERN SAW ACQUISITION CORPORATION

	  	  
	  	
By:

	

/s/ James F. McCabe, Jr.

	  	
Name:

	
James F. McCabe, Jr.

	  	
Title:

	
Senior Vice President

 

 

[SIGNATURE PAGES CONTINUE ON NEXT PAGE]

 

  

  

  

 

[SIGNATURE PAGES CONTINUED FROM PREVIOUS PAGE]

	  	
GUARANTORS

	  	  
	  	
HANDY & HARMAN OF CANADA, LIMITED

HANDY & HARMAN INTERNATIONAL, LTD.

ELE CORPORATION

ALLOY RING SERVICE, INC.

DANIEL RADIATOR CORPORATION

H&H PRODUCTIONS, INC.

HANDY & HARMAN AUTOMOTIVE GROUP, INC.

HANDY & HARMAN PERU, INC.

KJ-VMI REALTY, INC.

PAL-RATH REALTY, INC.

PLATINA LABORATORIES, INC.

SHEFFIELD STREET CORPORATION

SWM, INC.

WILLING B WIRE CORPORATION

ARLON PARTNERS, INC.

ARLON MED INTERNATIONAL LLC

ARLON ADHESIVES & FILMS, INC.

KASCO MEXICO LLC

	  	  
	  	
By:

	

/s/ James F. McCabe, Jr.

	  	
Name:

	
James F. McCabe, Jr.

	  	
Title:

	
Senior Vice President

	  	
THE 7 ORNE STREET NOMINEE TRUST

THE 28 GRANT STREET NOMINEE TRUST

20 GRANT STREET NOMINEE TRUST

	  	  
	  	
By:

	

/s/ James F. McCabe, Jr.

	  	
Name:

	
James F. McCabe, Jr.

	  	
Title:

	
Trustee

	  	
ATLANTIC SERVICE COMPANY, LIMITED

	  	  
	  	
By:

	

/s/ James F. McCabe, Jr.

	  	
Name:

	
James F. McCabe, Jr.

	  	
Title:

	
Treasurer

[SIGNATURE PAGES CONTINUE ON NEXT PAGE]

 

  

  

  

 

[SIGNATURE PAGES CONTINUED FROM PREVIOUS PAGE]

	  	
INDIANA TUBE SOLUTIONS DE MEXICO S. DE R.L. DE CV

	  	  
	  	
By:

	

/s/ James F. McCabe, Jr.

	  	
Name:

	
James F. McCabe, Jr.

	  	
Title:

	
Designated Manager

	  	
KASCO ENSAMBLY S.A. DE C.V.

	  	  
	  	
By:

	

/s/ Tom Robert Orelup

	  	
Name:

	
Tom Robert Orelup

	  	
Title:

	
Secretary and Treasurer

  

  

  

SCHEDULE A

TO

AMENDMENT NO. 2

TO

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

Cover Page to Amended and Restated Loan and Security Agreement

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

by and among

HANDY & HARMAN GROUP LTD.

HANDY & HARMAN

OMG, INC.

CAMDEL METALS CORPORATION

CANFIELD METAL COATING CORPORATION

CONTINENTAL INDUSTRIES, INC.

INDIANA TUBE CORPORATION

LUCAS-MILHAUPT, INC.

MICRO-TUBE FABRICATORS, INC.

MARYLAND SPECIALTY WIRE, INC.

HANDY & HARMAN TUBE COMPANY, INC.

HANDY & HARMAN ELECTRONIC MATERIALS CORPORATION

SUMCO INC.

OMG ROOFING, INC.

OMNI TECHNOLOGIES CORPORATION OF DANVILLE

BAIRNCO CORPORATION

ARLON LLC

ARLON VISCOR LTD.

ARLON SIGNTECH, LTD.

KASCO CORPORATION

SOUTHERN SAW ACQUISITION CORPORATION,

as Borrowers

certain Subsidiaries of HANDY & HARMAN GROUP LTD.,

as Guarantors

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Agent

BANK OF AMERICA, N.A., as Syndication Agent

and

THE LENDERS FROM TIME TO TIME PARTY HERETO, as Lenders

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Sole Lead Arranger and Sole Lead Bookrunner

Dated: October 15, 2010

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