Document:

Second Amended and Restated Inventory Rider to Loan and Security Agreement

 EXHIBIT 10.50 
  

			
	

	  	 SECOND AMENDED AND RESTATED
 INVENTORY RIDER (REVOLVING ADVANCE)

 Borrower(s):        CYGNE DESIGNS, INC. 
 Borrower has entered into that certain Loan and Security Agreement (Accounts and inventory) dated July 30, 2007 with Comerica Bank (“Bank”) as secured
party (as modified, supplemented, amended, revised or restated from time to time, hereinafter the “Agreement”), The SECOND AMENDED AND RESTATED INVENTORY RIDER (REVOLVING ADVANCE), dated as of May 5, 2008 (hereinafter, this
“Rider”) (a) is hereby made a part of and is incorporated into the Agreement and (b) amends and restates, in its entirety, that certain Amended and Restated Inventory Rider (Revolving Advance), dated November 7,2007, between
Borrower and Bank. Unless otherwise defined, all initially capitalized terms in this Rider shall be as defined in the Agreement. 
 1. At the
request of Borrower, made at any time and from time to time during the term of the Agreement, and as long as no event of default under the Agreement has occurred and Borrower is in full, faithful and timely compliance with each and all of the
covenants, conditions, warranties and representations contained in the Agreement, this Rider and/or any other agreement between Bank and Borrower, and subject to Borrower’s concurrent execution and delivery to Bank of a Designation of
Inventory, or Certification of Borrowing Base, in form customarily used by Bank, Bank agrees to make loans to Borrower secured by Borrower’s inventory up to a maximum advance outstanding at any one time not to exceed the sum of: 
 a. The lesser of (i)(A) during the Increase Period (as such term in defined in Section 1.6 of the Agreement seventy percent (70%) of the lower
of cost or market value of Eligible Finished Goods Inventory and (B) during the Standard Period (as such term in defined in Section 1.6 of the Agreement), fifty percent (50%) of the lower of cost or market value of Eligible Finished
Goods Inventory or (ii) One Million Two Hundred Fifty Thousand Dollars ($1,250,000); plus 
 b. The lesser of (i)(A) during the Increase
Period, eighty percent (80%) of the lower of cost or market value of Eligible In-Transit Inventory and (B) during the Standard Period, fifty percent (50%) of the lower of cost or market value of Eligible In-Transit Inventory, or
(ii) One Million Five Hundred Thousand Dollars ($1,500,000). 
 Anything contained in the foregoing to the contrary notwithstanding, Bank
may adjust the Borrowing Base percentage(s) and the definition of Eligible Finished Goods Inventory and Eligible in-Transit Inventory, in each case as provided for under Section 6.7 of the Agreement. 
 2. As used in this Rider, the following terms shall have the following definitions: 
 a. “Eligible Finished Goods Inventory” shall mean Borrower’s finished goods inventory, as may be adjusted by Bank, in Bank’s
discretion, for age and seasonality or other factors affecting the value of such inventory, and that have been validly pledged to Bank and strictly comply with all of Borrower’s warranties and representations to Bank; but Eligible Finished
Goods Inventory shall not include the following: (a) supplies (e.g. packaging); (b) raw materials or purchased parts; (c) work in process; (d) Inventory consigned to sales representatives of consigned to Borrower by a vendor;
(e) obsolete inventory; (f) inventory reserve amounts; (g) finished goods with no/low liquidation value; (h) inventory located or stored with a ballos, warehousemen or other third party without Bank’s prior written consent
and unless a bailment agreement in form and substance satisfactory to Bank and any other documents required in accordance with Section 6.5 of the Agreement are in place; (i) defective or inventory under repair; (j) inventory
not insured naming Bank as loss payee; (k) inventory not located at an address set forth in Section 6.5 of the Agreement or any schedule provided in connection therewith; and (l) all other inventory deemed ineligible by Bank.

 b. “Eligible in Transit Inventory” shall mean and includes Borrower’s finished goods inventory that does not qualify as
Eligible Finished Goods Inventory solely because it is in transit to a location set forth in Section 6.5 of the Agreement, but that (a) has been purchased by Borrower; (b) payment for such purchase has been made by Borrower to
the seller of such inventory, (c) title to such inventory has transferred to Borrower and (d) is not otherwise determined from time to time by Bank, in its sole discretion, to be ineligible. 
 3. All Eligible inventory and all Eligible in Transit Inventory is in all material respects of good and merchantable quality, free from all material
defects. All advances made and to be made pursuant to this Rider are solely and exclusively to enable Borrower to acquire rights in and purchase new Inventory, and Borrower represents and warrants that all advances by Bank pursuant to this Rider
will be used solely and exclusively for such purpose; and since such advances will be used for the foregoing purposes; Bank’s security interest in Borrower’s inventory is and shall be at all times a purchase-money security interest as that
term is described in Section 9103 of the California Uniform Commercial Code. 
 4. Advances made by Bank to Borrower pursuant to this
Rider shall be included as part of the indebtedness of Borrower to Bank as the term “Indebtedness” is defined in the Agreement; and at Bank’s option, advances pursuant to this Rider may be evidenced by promissory note(s), In form and
on terms satisfactory to Bank. All such advances shall bear interest at the rate and be payable in the manner specified in said promissory note(s) in the event Bank exercises the aforementioned option, and in the event Bank does not, such advances
shall bear interest at the rate and be payable in the manner specified in the Agreement. 
 5. All of the terms, covenants, warranties,
conditions, agreements and representations of the Agreement are incorporated herein as though set forth in their entirety and are hereby reaffirmed by Borrower and Bank as though fully set forth herein. 
  

 1 

 IN WITNESS WHEREOF, the parties have agreed as of May 5, 2008. 

									
	COMERICA BANK	 		 		 	CYGNE DESIGNS, INC.,
		 		 		 	A Delaware corporation
					
	By:	 	 

	 		 	By:	 	 

	 Name:
 Title:
	 	 Deborah Jenkins
 Vice President – Western Market

	 		 	Name:	 	

		 		 		 	Title:	 	

  

 2Consent of Mahoney Cohen & Company, CPA, P.C.

 Exhibit 10.51 
 Consent of Independent Registered Public Accounting Firm 
 We hereby consent to the incorporation by
reference in this Registration Statement on Form S-3 and related prospectus of our report dated May 15, 2008, relating to the consolidated financial statements and schedule of Cygne Designs, Inc. which appears in Cygne Designs, Inc.’s Annual
Report on Form 10-K for the year ended January 31, 2008. 
 

 
 New York, NY 
 May 15, 2008Consent of Ernst & Young LLP

 Exhibit 10.52 
 Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm 
 We consent to the
incorporation by reference in the Registration Statement (Form S-3 No. 333-147478) of Cygne Designs, Inc. and the related prospectus of our reports dated April 25, 2007, with respect to the consolidated financial statements and schedule of
Cygne Designs, Inc. included in this Annual Report (Form 10-K) for the year ended January 31, 2008. 
  

	
	/s/ Ernst & Young LLP

 Los Angeles, California 
 May 14, 2008Amendment No. 11 to Amended and Restated Credit Agreement

 Exhibit 10.2 
 EXECUTION COPY 
 AMENDMENT NO. 11 
 TO AMENDED AND RESTATED CREDIT AGREEMENT AND CONSENT 
 THIS AMENDMENT NO. 11 TO
AMENDED AND RESTATED CREDIT AGREEMENT AND CONSENT, dated as of February 28, 2008 (the “Agreement”) relating to the Credit Agreement referenced below, is by and among WOLVERINE TUBE, INC., a Delaware corporation (the
“Company”), certain of its Subsidiaries identified as Subsidiary Borrowers on the signature pages hereto and any additional Subsidiaries of the Company which become parties to the Credit Agreement in accordance with the terms
thereof (collectively referred to as the “Subsidiary Borrowers” and individually referred to as a “Subsidiary Borrower”) (hereinafter, the Company and the Subsidiary Borrowers are collectively referred to as the
“Borrowers” or referred to individually as a “Borrower”), each of the financial institutions identified as Lenders on the signature pages hereto (the “Lenders” and each individually, a
“Lender”), and WACHOVIA BANK, NATIONAL ASSOCIATION, (“Wachovia”), acting in the manner and to the extent described in Article XIII of the Credit Agreement (in such capacity, the “Administrative
Agent” or the “Agent”). Terms used but not otherwise defined herein shall have the meanings provided in the Credit Agreement and the provisions of Sections 1.2 and 1.3 of the Credit Agreement related to the definitions
shall apply herein. 
 W I T N E S S E T H 
 WHEREAS, a $35,000,000 credit facility has been extended to the Borrowers pursuant to the terms of that certain Amended and Restated Credit Agreement dated as of April 28, 2005 (as amended, modified or otherwise
supplemented from time to time, the “Credit Agreement”) among the Borrowers, the Lenders, and the Administrative Agent; 
 WHEREAS, the Company has informed the Administrative Agent that Small Tube Manufacturing, LLC, a Delaware limited liability company (“Small Tube”), intends to sell substantially all of its assets located in Altoona,
Pennsylvania (the “Small Tube Disposition”) pursuant to the terms of that certain Asset Sale and Purchase Agreement, dated as of February 29, 2008 (the “Small Tube Purchase Agreement”), among the Company, Small
Tube and ST Products, LLC; 
 WHEREAS, the Borrowers have requested that the Lenders consent to the Small Tube Disposition; 
 WHEREAS, the Borrowers have further requested that the Credit Agreement be amended as contemplated herein; and 
 WHEREAS, the undersigned Lenders are willing to consent to the Small Tube Disposition and have agreed to amend the Credit Agreement on the terms and
conditions as set forth herein; 

 NOW, THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 (A) Amendments. 
 1. The definition of “Borrowers” as set forth in Section 1.1 of the Credit Agreement, is hereby amended by deleting the
name “Small Tube Manufacturing, LLC,” appearing therein. 
 2. The definition of “Intercreditor Agreement”
as set forth in Section 1.1 of the Credit Agreement, is hereby amended by deleting the name “Small Tube Manufacturing, LLC,” appearing therein. 
 3. The definition of Securitization Companies, as set forth in Section 1.1 of the Credit Agreement is hereby amended and restated in
its entirety to read as follows: 
 “Securitization Companies” means the Company, Tube Forming, L.P.,
Wolverine Joining Technologies, LLC and prior to February 29, 2008, Small Tube Manufacturing, LLC. 
 (B) Consent and Release
of Small Tube. The Administrative Agent and the Lenders hereby consent to the Small Tube Disposition in accordance with the terms of the Small Tube Purchase Agreement and upon satisfactory evidence delivered to the Administrative
Agent of the consummation thereof (i) the Administrative Agent and Lenders hereby consent to the release of Small Tube from its Obligations as a Borrower under the Credit Agreement and the other Credit Documents, (ii) the Administrative
Agent’s liens and security interests in all the assets and property of Small Tube (collectively, the “Property”) shall automatically be released and discharged, without further action, and (iii) the Administrative Agent
agrees to deliver to the Company the original stock certificates and other instruments in the Administrative Agent’s possession and UCC-3 termination statements, mortgage satisfactions, releases of liens, discharges, terminations and other
release documentation, as applicable, executed by it as necessary releasing the Administrative Agent’s liens and security interests in the Property, and in connection therewith, the Administrative Agent hereby authorizes the Company (or its
designees) to file UCC-3 termination statements on its behalf to terminate any liens in accordance with this Section (B) that the Administrative Agent has over any of the Property. The Borrowers hereby acknowledge that the Administrative
Agent’s execution of and/or delivery of any documents releasing any security interest or claim in any of the Property is made without recourse, representation, warranty or other assurance of any kind by the Administrative Agent as to
Administrative Agent’s rights in any collateral security for amounts owing under the Credit Documents, the condition or value of any Collateral, or any other matter. 
 (C) Representations and Warranties. Each Credit Party hereby represents and warrants that (i) the representations and warranties contained in Article VI of the Credit Agreement are true and
correct in all material respects on and as of the date hereof as though made on and as of such date (except for those representations and warranties which by their terms relate solely to an earlier date) and after giving effect to the transactions
contemplated 

  

 2 

 
herein, (ii) no Default or Event of Default exists under the Credit Agreement on and as of the date hereof and after giving effect to the transactions
contemplated herein, (iii) it has the corporate, limited liability company or limited partnership power and authority to execute and deliver this Agreement and to perform its obligations hereunder and has taken all necessary organizational
action to authorize the execution, delivery and performance by it of this Agreement; (iv) it has duly executed and delivered this Agreement, and this Agreement constitutes its legal, valid and binding obligation enforceable in accordance with
its terms except as the enforceability thereof may be limited by bankruptcy, insolvency or other similar laws affecting the rights of creditors generally or by general principles of equity and (v) neither the execution and delivery of this
Agreement, nor the consummation of the transactions contemplated therein, nor performance of and compliance with the terms and provisions thereof will violate or conflict in any material respect with any material provision of its articles or
certificate of incorporation or certificate of limited partnership or certificate of formation, bylaws, agreement of limited partnership or limited liability company agreement or violate, contravene or conflict in any material respect with
contractual provisions of, or cause an event of default under, any indenture, including without limitation the 2008 Senior Note Indenture and 2009 Senior Note Indenture, loan agreement, mortgage, deed of trust, contract or other agreement or
instrument to which it is a party or by which it may be bound. 
 (D) Effectiveness. This Agreement shall become effective upon
satisfaction of all of the following conditions precedent: 
 1. Executed Agreement. The Administrative Agent shall
have received a fully executed counterpart of this Agreement from each party hereto. 
 2. Borrowing Base Certificate.
The Administrative Agent shall have received a Borrowing Base Certificate (the “Amendment No. 11 Borrowing Base Certificate”), in substantially the form of Exhibit G to the Credit Agreement, evidencing calculation of the
Borrowing Base after giving effect to the consummation of the Small Tube Disposition as of the close of business on a date acceptable to the Administrative Agent, certified by a Senior Financial Officer of the Company to be true and correct as of
such date, which Amendment No. 11 Borrowing Base Certificate shall be attached hereto as Exhibit A. 
 3. 2008 Senior
Note Indenture and 2009 Senior Note Indenture. The Administrative Agent shall have received evidence in writing satisfactory to it that after giving effect to the transactions contemplated by this Agreement, the Company is in compliance with the
terms of the 2008 Senior Note Indenture and the 2009 Senior Note Indenture, which writing shall expressly demonstrate compliance with Section 4.3(i) of the 2008 Senior Note Indenture and Section 4.11(i) of the 2009 Senior Note Indenture.

 4. Amendment Fee; Expenses. The Administrative Agent shall have received from the Borrowers payment of an amendment
fee of $25,000 and payment of all reasonable costs and expenses of the Administrative Agent in connection with the preparation, execution and delivery of this Agreement, including all out-of-pocket costs and expenses incurred by the Administrative
Agent in connection with the Agent’s execution and/or delivery of any documents releasing any security interest or claim in any of the Property, the reasonable fees and expenses of Mayer Brown LLP, and all previously incurred fees and expenses
which remain outstanding on the effective date of this Agreement. 
  

 3 

 5. Other Conditions Precedent. The Borrowers shall have completed all proceedings
taken in connection with the transactions contemplated by this Agreement and delivered to the Administrative Agent all other documentation and other items incident thereto, and each shall be satisfactory to the Administrative Agent and its legal
counsel, Mayer Brown LLP. 
 (E) No Other Modification. Except to the extent specifically provided to the contrary in this
Agreement, all terms and conditions of the Credit Agreement (including Exhibits and Schedules thereto) and the other Credit Documents shall remain in full force and effect, without modification or limitation. This Agreement shall not operate as a
consent to any other action or inaction by the Borrowers or any other Credit Party, or as a waiver or amendment of any right, power, or remedy of any Lender or the Administrative Agent under the Credit Agreement or any other Credit Document nor
constitute a consent to any such action or inaction, or a waiver or amendment of any provision contained in the Credit Agreement or any other Credit Document except as specifically provided herein. Each of the Credit Parties acknowledges, confirms
and agrees that the Credit Documents to which it is a party remain in full force and effect as of the date hereof and continue to secure all Obligations of each such Credit Party to any Lender or the Administrative Agent, and novation of any
kind is hereby expressly disclaimed. 
 (F) Release. In consideration of entering into this Agreement, each Credit Party
(a) represents and warrants to the Administrative Agent and each Lender that as of the date hereof there are no causes of action, claims, actions, proceedings, judgments, suits, demands, damages or offsets against or defenses or counterclaims
to its Obligations or Secured Obligations under the Credit Documents and furthermore, such Credit Party waives any and all such causes of action, claims, actions, proceedings, judgments, suits, demands, damages, offsets, defenses or counterclaims
whether known or unknown, arising prior to the date of this Agreement and (b) releases the Administrative Agent and each Lender and each of their respective Affiliates, Subsidiaries, officers, employees, representatives, agents, counsel and
directors from any and all actions, causes of action, claims, actions, proceedings, judgments, suits, demands, damages and liabilities of whatever kind or nature, in law or in equity, now known or unknown, suspected or unsuspected to the extent that
any of the foregoing arises from any action or failure to act with respect to any Credit Document, on or prior to the date hereof. 
 (G)
Governing Law. This Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of North Carolina, without regard to the principles governing conflicts of laws thereof. 
 (H) INCORPORATION BY REFERENCE OF CERTAIN PROVISIONS. THE PROVISIONS IN SECTIONS 14.5, 14.6, 14.8, 14.9, 14.10, 14.12, 14.13, 14.14,
14.15, 14.19 AND 14.24 OF THE CREDIT AGREEMENT ARE HEREBY INCORPORATED BY REFERENCE HEREIN, MUTATIS MUTANDIS. 
 [SIGNATURE
PAGES FOLLOW] 
  

 4 

 Each of the parties hereto has caused a counterpart of this Agreement to be duly executed and delivered
as of the date first above written. 
  

			
	COMPANY:
	
	WOLVERINE TUBE, INC.
		
	By:	 	/s/ David A. Owen
	Name:	 	David A. Owen
	Title:	 	Senior Vice President and
Chief Financial Officer
	
	SUBSIDIARY BORROWERS:
	
	TF INVESTOR, INC.
		
	By:	 	/s/ David A. Owen
	Name:	 	David A. Owen
	Title:	 	Vice President & Treasurer
	
	TUBE FORMING HOLDINGS, INC.
		
	By:	 	/s/ David A. Owen
	Name:	 	David A. Owen
	Title:	 	Vice President & Treasurer

					
	
	TUBE FORMING, L.P.
		
	By:	 	Tube Forming Holdings, Inc.,
		 	its General Partner
			
		 	By:	 	/s/ David A. Owen
		 	Name:	 	David A. Owen
		 	Title:	 	Vice President & Treasurer

			
	
	WOLVERINE FINANCE, LLC
		
	By:	 	/s/ Harold A. Karp
	Name:	 	Harold A. Karp
	Title:	 	Chief Manager
	
	SMALL TUBE MANUFACTURING, LLC
		
	By:	 	/s/ Harold A. Karp
	Name:	 	Harold A. Karp
	Title:	 	President
	
	WOLVERINE JOINING TECHNOLOGIES, LLC
		
	By:	 	/s/ Harold A. Karp
	Name:	 	Harold A. Karp
	Title:	 	President

					
	
	WOLVERINE CHINA INVESTMENTS, LLC
		
	By:	 	Wolverine Tube, Inc.,
		 	its Managing Member
			
		 	By:	 	/s/ Harold A. Karp
		 	Name:	 	Harold A. Karp
		 	Title:	 	President

			
	
	WT HOLDING COMPANY, INC.
		
	By:	 	/s/ Harold A. Karp
	Name:	 	Harold A. Karp
	Title:	 	President & Chief Operating Officer

			
	
	AGENT AND LENDERS:
	
	 WACHOVIA BANK,
 NATIONAL ASSOCIATION, in its
capacity as Administrative Agent and as a Lender

		
	By:	 	/s/ Rodney K. Sanders
	Name:	 	Rodney K. Sanders
	Title:	 	Director

 (signature pages end) 

 EXHIBIT A 
 Amendment No. 11 Borrowing Base Certificate 
 See attached. 

 Wolverine Tube, Inc. 
 Proforma Consolidated Net Tangible Assets Calculation 
 As of January 27, 2008 

 

													
	 	  	Consolidated
as Reported	 	 	Less STP
Amount
($000’s)	 	 	Plus
Estimated Net
Proceeds
received from
sale	 	 	Consolidated
following Sale
of STP	 
	 Total Assets:
	  			 			 			 		
	 Total Assets - Internal
	  	465,292	 	 	17,750	 	 	23,000	 	 	470,542	 
	 Add Receivables exchanged to satisfy
	  			 			 			 		
	 Subordinated Note with DEJ (SPE)
	  	—  	 	 	8,139	 	 	—  	 	 	(8,139	)
	 Deffered Income Taxes - Current
	  	(660	)	 	341	 	 	—  	 	 	(1,001	)
		  			 	 	 	 			 		
	 Deffered Taxes - Non Current
	  	(3,064	)	 	161	 	 	—  	 	 	(3,225	)
		  	 	 	 	 	 	 	 	 	 	 	 
	 Total Assets - Net
	  	461,568	 	 	26,391	 	 	23,000	 	 	458,177	 
	 Less:
	  			 			 			 		
	 Bank Overdraft
	  	(412	)	 	—  	 	 	—  	 	 	(412	)
	 Trade Accounts Payable
	  	(55,324	)	 	(892	)	 	—  	 	 	(54,432	)
	 Accounts Payable Other
	  	(15,106	)	 	(1,059	)	 	—  	 	 	(14,047	)
	 Accrued Expenses
	  	(24,144	)	 	—  	 	 	—  	 	 	(24,144	)
	 Accrued Income Taxes
	  	(297	)	 	—  	 	 	—  	 	 	(297	)
	 Deferred Income Taxes - Current
	  	660	 	 	—  	 	 	—  	 	 	660	 
	 Deferred Taxes - Non Current
	  	3,064	 	 	—  	 	 	—  	 	 	3,064	 
	 Intangibles / Other Assets:
	  			 			 			 	—  	 
	 Deferred Debt Issuance Costs
	  	(14,298	)	 	—  	 	 	—  	 	 	(14,298	)
	 Patents and Other
	  	(2,281	)	 	—  	 	 	—  	 	 	(2,281	)
	 Goodwill
	  	(50,952	)	 	—  	 	 	—  	 	 	(50,952	)
	 Accumulated Amortization
	  	16,839	 	 	—  	 	 	—  	 	 	16,839	 
		  	 	 	 	 	 	 	 	 	 	 	 
	 Total Intangibles (Net)
	  	(50,692	)	 	—  	 	 	—  	 	 	(50,692	)
	 Total
	  	319,317	 	 	24,440	 	 	23,000	 	 	317,877	 
	 Lien Limitation
	  	10	%	 	10	%	 	10	%	 	10	%
	 Total Available
	  	31,932	 	 	2,444	 	 	2,300	 	 	31,788	 

  

									
					
	Approved By: 	 	/s/ David A. Owen	 		 		 	
	Title:	 	Chief Financial Officer	 		 		 	Date: 2/29/2008

 EXHIBIT 
 Wolverine Tube, Inc. 
 Borrowing Base Certificate 
 Pursuant to the provisions of the Amended and Restated Credit Agreement dated as of April 28, 2005 (said Agreement, as it may be amended or otherwise modified from time to time, the “Credit Agreement”); and the terms
defined therein being used herein as therein defined), among Wolverine Tube, Inc., a Delaware corporation, and the other Credit Parties thereto, the financial institutions party thereto, as lenders (the “Lenders”), and Wachovia Bank,
National Association, as Agent for the Lenders, the undersigned hereby certifies that the following information is true, complete, and accurate as the close of business on: 
 January 27, 2008 
  

																			
	 (In thousands)
	 	WTI	 	WLV Joining
Products	 	Small Tube	 	TFI	 	WFC	 	Consolidated
	 A.
	  	 INVENTORY (FIFO)
	 		 		 		 		 		 	
		  	 1.
	  	 BEGINNING INVENTORY OF BORROWER AS OF THE PERIOD ENDING DATE ABOVE
	 	44,932	 	25,764	 	—  	 	18,725	 		 	89,422
		  	 2.
	  	 ADJUSTMENTS (+)
	 		 		 		 		 		 	—  
		  	 3.
	  	 ADJUSTMENTS (-)
	 		 		 		 		 		 	—  
		  	 4.
	  	 INVENTORY OF BORROWER AS OF THE PERIOD ENDING DATE ABOVE
	 	44,932	 	25,764	 	—  	 	18,725	 	—  	 	89,422
		  	 5.
	  	 LESS: INELIGIBLE INVENTORY
	 		 		 		 		 		 	
		  		  	 a.
	  	 Located Outside the U.S.
	 		 		 		 		 		 	—  
		  		  	 b.
	  	 Work in Process Inventory (not containing Silver or Billet Inventory)
	 	12,907	 	898	 	—  	 	618	 		 	14,423
		  		  	 c.
	  	 Work in Process Inventory (containing Silver)
	 		 	12,818	 		 		 		 	12,818
		  		  	 d.
	  	 Inventory without Landlord Waiver or Bailee’s Letter or Acknowledgment Agreement
	 		 		 		 		 		 	—  
		  		  	 e.
	  	 Obsolete, slow-moving, unusable inventory
	 		 		 		 		 		 	—  
		  		  	 f.
	  	 Promotional, marketing, packaging, or shipping materials
	 	109	 	—  	 	—  	 	—  	 		 	109
		  		  	 g.
	  	 Does not meet standards imposed by governmental agency or authority
	 		 		 		 		 		 	—  
		  		  	 h.
	  	 Goods returned or rejected by customers for which a credit has not yet been issued
	 		 		 		 		 		 	—  
		  		  	 i.
	  	 No charge or sample inventory
	 		 		 		 		 		 	—  
		  		  	 j.
	  	 Off-site inventory, not in possession of or under sole control of Borrower, except for Landlord Waiver exceptions above
	 	6,901	 	3,710	 	—  	 	1,776	 		 	12,387
		  		  	 k.
	  	 Does not or has ceased to create a valid and perfected first priority security interest and lien in favor of the Secured parties securing
the Obligations
	 		 		 		 		 		 	—  
		  		  	 l.
	  	 Damaged inventory
	 		 		 		 		 		 	—  
		  		  	 m.
	  	 Inventory clearing, in-transit inventory, HQ inventory
	 		 		 		 		 		 	—  
		  		  	 n.
	  	 MRO Supply parts
	 	8,265	 	524	 	—  	 	223	 		 	9,011
		  		  	 o.
	  	 Inventory held pursuant to consignment, sale, tolling, or return, sale on approval or similar arrangement
	 	414	 	—  	 	—  	 	—  	 		 	414
		  		  	 p.
	  	 Finished Goods containing Silver
	 		 	4,134	 		 		 		 	4,134

  

 1 

 January 27, 2008 
  

																			
	 (In thousands)
	 	WTI	 	WLV Joining
Products	 	Small Tube	 	TFI	 	WFC	 	Consolidated
		  		  	q.	  	 Consisting of intercompany profit
	 		 		 		 		 		 	—  
		  		  	 r.
	  	 Raw Materials containing Silver
	 		 	2,144	 		 		 		 	2,144
		  		  	 s.
	  	 Other reserves as reasonably required by Administrative Agent
	 		 		 		 		 		 	—  
		  	 6.
	  	 TOTAL INELIGIBLE INVENTORY
	 	28,596	 	24,228	 	—  	 	2,617	 	—  	 	55,441
		  	 7.
	  	 ELIGIBLE INVENTORY
	 	16,336	 	1,536	 	—  	 	16,109	 	—  	 	33,982
		  	 8.
	  	 AVAILABLE INVENTORY @ 60% ADVANCE RATE
	 	9,801	 	922	 	—  	 	9,665	 	—  	 	20,389
	 B.
	  	EQUIPMENT	 		 		 		 		 		 	
		  	 1.
	  	 EQUIPMENT
	 	19,810	 	3,133	 	—  	 	2,573	 		 	25,516
		  		  	 LESS: INELIGIBLE EQUIPMENT
	 		 		 		 		 		 	—  
		  		  	 a.
	  	 Not owned solely by Borroweror without valid and marketable title.
	 		 		 		 		 		 	—  
		  		  	 b.
	  	 Maintained on property that is not owned by Borrower or on which we have not obtained an Acknowledgment Agreement.
	 		 		 		 		 		 	—  
		  		  	 c.
	  	 Not subject to a valid, enforceable, first Lien in favor of the Administrative Agent.
	 		 		 		 		 		 	—  
		  		  	 d.
	  	 Not located in the United States.
	 		 		 		 		 		 	—  
		  		  	 e.
	  	 Not in good working condition and able to be used for intended purposes.
	 		 		 		 		 		 	—  
		  		  	 f.
	  	 Other reserves as reasonably required by Administrative Agent
	 		 		 		 		 		 	—  
		  	 2.
	  	 TOTAL INELIGIBLE EQUIPMENT
	 	—  	 	—  	 	—  	 	—  	 	—  	 	—  
		  	 3.
	  	 ELIGIBLE EQUIPMENT
	 	19,810	 	3,133	 	—  	 	2,573	 	—  	 	25,516
		  	 4.
	  	 AVAILABLE EQUIPMENT @ 25% ADVANCE RATE CAPPED AT $11,000,000
	 	4,953	 	783	 	—  	 	643	 	—  	 	6,379
	 C.
	  	LOANS	 		 		 		 		 		 	
		  	 1.
	  	 BEGINNING LOAN BALANCE
	 	—  	 	—  	 	—  	 	—  	 	—  	 	—  
		  	 2.
	  	 CASH APPLIED (-)
	 	—  	 	—  	 	—  	 	—  	 	—  	 	—  
		  	 3.
	  	 ADJUSTMENTS (+/-)
	 		 	—  	 	—  	 	—  	 	—  	 	—  
		  	 4.
	  	 ADVANCES (+)
	 	—  	 	—  	 	—  	 	—  	 	—  	 	—  
		  	 5.
	  	 CURRENT LOAN BALANCE
	 	—  	 	—  	 	—  	 	—  	 	—  	 	—  
		  	 6.
	  	 MARK TO MARKET VALUE of INTEREST RATE DERIVATIVE
	 	—  	 	—  	 	—  	 	—  	 	—  	 	—  
		  	 7.
	  	 LETTERS OF CREDIT
	 	23,284	 	—  	 	—  	 	—  	 	—  	 	23,284
		  	 8.
	  	 TOTAL LOAN OUTSTANDINGS
	 	23,284	 	—  	 	—  	 	—  	 	—  	 	23,284

  

 2 

 January 27, 2008 
  

																			
	 (In thousands)
	 	WTI	 	WLV Joining
Products	 	Small Tube	 	TFI	 	WFC	 	Consolidated
	 D.
	  	AVAILABILITY	 		 		 		 		 		 	
		  	 1.
	  	 TOTAL REVOLVER COMMITMENT
	 		 		 		 		 		 	35,000
		  	 2.
	  	 BORROWING BASE TOTAL
	 		 		 		 		 		 	
		  		  	 TOTAL BORROWING BASE AVAILABILITY
	 		 		 		 		 		 	26,768
		  	 3.
	  	 a.
	  	 LESS: $80,000 Reserve for UCC filing issue in TN
	 		 		 		 		 		 	80
		  		  	 b.
	  	 LESS: Other Eligibility Reserves
	 		 		 		 		 		 	—  
		  		  	 c.
	  	 LESS: 3-month rent reserves on locations that do not have landlord lienwaivers.
	 		 		 		 		 		 	150
		  		  	 d.
	  	 LESS: Availability Reserve
	 		 		 		 		 		 	3,000
		  		  	 TOTAL ELIGIBILITY RESERVES
	 		 		 		 		 		 	3,230
		  	 4.
	  	 TOTAL AVAILABILITY
	 		 		 		 		 		 	23,538
		  	 4a.
	  	 THE LESSER OF TOTAL REVOLVER COMMITMENT OR TOTAL AVAILABILITY
	 		 		 		 		 		 	23,538
		  	 5.
	  	 LESS: TOTAL LOAN OUTSTANDINGS
	 		 		 		 		 		 	23,284
		  	 6.
	  	 NET EXCESS AVAILABILITY
	 		 		 		 		 		 	254
	 E.
	  	 BILLET INVENTORY (MEMO ONLY; INCLUDED ABOVE)
	 		 		 		 		 		 	
		  	 1.
	  	 TOTAL BILLET INVENTORY IN POUNDS
	 	66,440	 	1/27/2008	 		 		 		 	
		  	 2.
	  	 STANDARD COST FOR BILLETS
	 	2.235	 		 		 		 		 	
		  	 3.
	  	 TOTAL DOLLAR VALUE OF BILLETS
	 	148,493	 		 		 		 		 	
		  	 4.
	  	 CONVERSION COSTS PER POUND
	 	0.085	 		 		 		 		 	
		  	 5.
	  	 TOTAL CONVERSION COSTS
	 	5,647	 		 		 		 		 	
		  	 6.
	  	 TOTAL NET BILLET INVENTORY (E3-E5)
	 	142,846	 		 		 		 		 	

 In connection with the foregoing, we hereby acknowledge and agree that, as of the date hereof, the Agreement
remains in full force and effect, is binding upon us and enforceable against us in accordance with its terms. 
  

									
	Approved By: 	 	David A. Owen	 		 		 	
	Title:	 	Chief Financial Officer	 		 		 	Date:                     

  

 3

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