Document:

EXHIBIT
4.1

 

SECOND
AMENDMENT TO CREDIT AGREEMENT

 

THIS SECOND AMENDMENT TO
CREDIT AGREEMENT, dated as of February 20, 2004 (this “Amendment”), to
the Existing Credit Agreement (as defined below) is made by REDDY ICE GROUP,
INC., a Texas corporation (the “Borrower”), and certain of the Lenders
(such capitalized term and other capitalized terms used in this preamble and
the recitals below to have the meanings set forth in, or are defined by
reference in, Article I below).

 

W I T N
E S S E T H:

 

WHEREAS, the Borrower, the
Lenders, Credit Suisse First Boston, acting through its Cayman Islands Branch
(“CSFB”), as the Administrative Agent, Canadian Imperial Bank of
Commerce and Bear Stearns Corporate Lending Inc., as the Co-Syndication Agents,
and CIBC World Markets Corp., CSFB and Bear, Stearns & Co. Inc., as the
Lead Arrangers and Joint-Book-Runners, are all parties to the Credit Agreement,
dated as of August 15, 2003 (as amended or otherwise modified prior to the date
hereof, the “Existing Credit Agreement”, and as amended by this
Amendment and as the same may be further amended, supplemented, amended and
restated or otherwise modified from time to time, the “Credit Agreement”);

 

WHEREAS, the Borrower has
requested that the Lenders amend certain provisions of the Existing Credit
Agreement; and

 

WHEREAS, the Lenders party
hereto are willing to amend the Existing Credit Agreement as set forth below;

 

NOW, THEREFORE, the parties
hereto hereby covenant and agree as follows:

 

ARTICLE I

DEFINITIONS

 

SECTION 1.1.  Certain
Definitions.  The following terms
when used in this Amendment shall have the following meanings (such meanings to
be equally applicable to the singular and plural forms thereof):

 

“Amendment” is
defined in the preamble.

 

“Amendment Effective Date”
is defined in Article III.

 

“Borrower” is defined
in the preamble.

 

“Credit Agreement” is
defined in the first recital.

 

“CSFB” is defined in
the first recital.

 

“Existing Credit
Agreement” is defined in the first recital.

 

1

 

SECTION 1.2.  Other
Definitions.  Terms for which
meanings are provided in the Credit Agreement are, unless otherwise defined
herein or the context otherwise requires, used in this Amendment with such
meanings.

 

ARTICLE II

AMENDMENTS TO CREDIT AGREEMENT

 

Effective on (and subject to
the occurrence of) the Amendment Effective Date, the provisions of the Existing
Credit Agreement referred to below are hereby amended in accordance with this Article
II.  Except as expressly so amended,
the Existing Credit Agreement shall continue in full force and effect in
accordance with its terms.

 

SECTION 2.1.  Amendment to
Article I.  Article I of the
Existing Credit Agreement is hereby amended as follows:

 

SECTION 2.1.1.  Section 1.1 of
the Existing Credit Agreement is hereby amended by inserting the following
definitions in the appropriate alphabetical order:

 

“Non-Lender
Issuer” is defined in Section 2.6.6.

 

“Participating
Issuer” is defined in Section 2.6.6.

 

SECTION 2.1.2.  Section 1.1 of
the Existing Credit Agreement is hereby amended by amending and restating:

 

(a)                                  the definition of Applicable Margin contained
therein so that it reads in its entirety as follows:

 

 “Applicable Margin” means:

 

(a)
with respect to Term Loans, (i) at all times prior to the Reset Date, 1.50% for
Term Loans maintained as Base Rate Loans and 2.50% for Term Loans maintained as
LIBO Rate Loans and (ii) at all times after the Reset Date, the applicable
percentage set forth below corresponding to the relevant Leverage Ratio determined
by reference to the Leverage Ratio set forth in the Compliance Certificate most
recently delivered by the Borrower to the Administrative Agent; and

 

(b)
with respect to Revolving Loans, (i) at all times prior to the Reset Date,
2.50% for Revolving Loans maintained as Base Rate Loans and 3.50% for Revolving
Loans maintained as LIBO Rate Loans and (ii) at all times after the Reset Date,
the applicable percentage set forth below corresponding to the relevant
Leverage Ratio determined by reference to the Leverage Ratio set forth in the
Compliance Certificate most recently delivered by the Borrower to the
Administrative Agent:

 

2

 

	
  Leverage

  Ratio

  	
   

  	
  Applicable

  Margin for

  Term Loans

  maintained as

  Base Rate Loans

  	
   

  	
  Applicable

  Margin for

  Term Loans 

  maintained as 

  LIBO Rate Loans

  	
   

  	
  Applicable

  Margin for

  Revolving Loans

  maintained as

  Base Rate Loans

  	
   

  	
  Applicable

  Margin for 

  Revolving Loans 

  maintained as 

  LIBO Rate Loans

  	
   

  
	
  >  3.75:1

  	
   

  	
  1.50

  	
  %

  	
  2.50

  	
  %

  	
  2.50

  	
  %

  	
  3.50

  	
  %

  
	
  < 3.75:1 but >  3.25:1

  	
   

  	
  1.25

  	
  %

  	
  2.25

  	
  %

  	
  2.25

  	
  %

  	
  3.25

  	
  %

  
	
  < 3.25:1 but >  2.75:1

  	
   

  	
  1.25

  	
  %

  	
  2.25

  	
  %

  	
  2.00

  	
  %

  	
  3.00

  	
  %

  
	
  < 2.75:1

  	
   

  	
  1.25

  	
  %

  	
  2.25

  	
  %

  	
  1.75

  	
  %

  	
  2.75

  	
  %

  

 

Changes
in the Applicable Margin resulting from a change in the Leverage Ratio shall
become effective upon delivery by the Borrower to the Administrative Agent of a
new Compliance Certificate pursuant to clause (c) of Section 7.1.1.  If the Borrower fails to deliver a
Compliance Certificate within 45 days after the end of any Fiscal Quarter
(or within 90 days, in the case of the last Fiscal Quarter of the Fiscal
Year), the Applicable Margin from and including the 46th (or 91st,
as the case may be) day after the end of such Fiscal Quarter to but not
including the date the Borrower delivers to the Administrative Agent a Compliance
Certificate shall be the highest Applicable Margin set forth above.

 

(b)                                 the definition of “Issuer” contained therein
so that it reads in its entirety as follows:

 

“Issuer” means CSFB
in its capacity as Issuer of the Letters of Credit and/or, at the request of
CSFB and with the Borrower’s consent (not to be unreasonably withheld or
delayed), another Lender or an Affiliate of a Lender that has agreed to issue
one or more Letters of Credit hereunder or any Lender or an Affiliate of a
Lender that has an agreement with any Non-Lender Issuer to issue Letters of
Credit for the account of the Borrower and its Subsidiaries.

 

SECTION 2.2.  Amendment to
Article II.  Article II of the
Existing Credit Agreement is hereby amended by adding a new Section 2.6.6 to
read as follows:

 

SECTION
2.6.6  Letter of Credit Participation
Agreements.  In the event that any
Issuer (a “Participating Issuer”) enters into any agreement with any
other Person (a “Non-Lender Issuer”) to issue letters of credit for the
account of the Borrower, such letter of credit will be deemed to be a Letter of
Credit issued hereunder and the Reimbursement Obligation and other Obligations
of the Borrower and related Obligations of the Guarantors with respect to such
Letter of Credit and the obligation of the Revolving Lenders to participate in
such Letters of Credit will be obligations owed to the Participating Issuer and
not the Non-Lender Issuer.  The
Non-Lender Issuer will have no claims or any other rights hereunder or against
any Obligor or any Lender other than the Participating Issuer.

 

3

 

ARTICLE III

CONDITIONS TO EFFECTIVENESS

 

This Amendment and the
amendments contained herein shall become effective on the date (the “Amendment
Effective Date”) when each of the conditions set forth in this Article
III shall have been fulfilled to the satisfaction of the Administrative
Agent.

 

SECTION 3.1.  Counterparts.  The Administrative Agent shall have received
counterparts hereof executed on behalf of the Borrower and the Required Lenders
and all Lenders owed Term Loans.

 

SECTION 3.2.  Satisfactory
Legal Form.  The Administrative
Agent and its counsel shall have received all information, and such
counterparts or such certified or other copies of such materials, as the
Administrative Agent or its counsel may reasonably request, and all legal
matters incident to the effectiveness of this Amendment shall be satisfactory
to the Administrative Agent and its counsel. 
All documents executed or submitted pursuant hereto or in connection
herewith shall be reasonably satisfactory in form and substance to the
Administrative Agent and its counsel.

 

ARTICLE IV

MISCELLANEOUS

 

SECTION 4.1.  Cross-References.  References in this Amendment to any Article
or Section are, unless otherwise specified, to such Article or Section of this
Amendment.

 

SECTION 4.2.  Loan Document
Pursuant to Existing Credit Agreement. 
This Amendment is a Loan Document executed pursuant to the Existing
Credit Agreement and shall (unless otherwise expressly indicated therein) be
construed, administered and applied in accordance with all of the terms and
provisions of the Existing Credit Agreement, as amended hereby, including
Article X thereof.

 

SECTION 4.3.  Successors and
Assigns.  This Amendment shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

 

SECTION 4.4.  Counterparts.  This Amendment may be executed by the
parties hereto in several counterparts, each of which when executed and
delivered shall be an original and all of which shall constitute together but
one and the same agreement.  Delivery of
an executed counterpart of a signature page to this Amendment by facsimile
shall be effective as delivery of a manually executed counterpart of this
Amendment.

 

SECTION 4.5. 
Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

SECTION 4.6.  Full Force and
Effect; Limited Amendment. 
Except as expressly amended hereby, all of the representations,
warranties, terms, covenants, conditions and other provisions of the Existing
Credit Agreement and the Loan Documents shall remain unchanged and shall
continue to be, and shall remain, in full force and effect in accordance with their
respective terms.  The amendments set
forth herein shall be limited precisely as provided for herein to the
provisions expressly amended herein and shall not be deemed to be an amendment
to, waiver of, consent to or modification of any other term or provision of the
Existing Credit Agreement or any other Loan Document or of any transaction or
further

 

4

 

or future action on the part of any Obligor which
would require the consent of the Lenders under the Existing Credit Agreement or
any of the Loan Documents.

 

SECTION 4.7.  Representations
and Warranties.  In order to induce
the Lenders to execute and deliver this Amendment, the Borrower hereby
represents and warrants to the Lenders, on the Amendment Effective Date, after
giving effect to this Amendment, all statements set forth in Section 5.2.1 of
the Credit Agreement are true and correct as of such date, except to the extent
that any such statement expressly relates to an earlier date (in which case
such statement was true and correct on and as of such earlier date).

 

5

 

IN
WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment
as of the date first above written.

 

 

	
   

  	
  REDDY
  ICE GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  STEVEN J. JANUSEK

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Steven
  J. Janusek

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [INSERT
  NAME OF LENDER]*

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  LENDERS * 

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

*  All Lenders as of the date of the Second Amendment to Credit Agreement
executed such amendment.

 

6Exhibit 10(A)

 

THE ST. PAUL
COMPANIES, INC.

SENIOR EXECUTIVE PERFORMANCE PLAN

1.               PURPOSE

The purpose of The St. Paul Companies, Inc. Senior
Executive Performance Plan is to permit The St. Paul Companies, Inc. (the
“Company”), through awards of annual incentive compensation which satisfy the
requirements for performance-based compensation under Section 162(m) of the
Internal Revenue Code, to attract and retain executives and to motivate these
executives to promote the profitability and growth of the Company.

2.               DEFINITIONS

“AFTER-TAX OPERATING EARNINGS” shall mean, for each
Performance Period, the Company’s net income from continuing operations as
reported in the Company’s income statement for the Performance Period, adjusted
to eliminate the after-tax effects of net realized investment gains or losses
in the fixed maturities and real estate portfolios, extraordinary items, and
the cumulative effect of accounting changes, each as defined by accounting
principles generally accepted in the United States.  This amount will be further adjusted to eliminate the after-tax
impact of any restructuring charges (as reported in the footnotes to the
Company’s financial statements), losses from catastrophes (as designated by the
Insurance Service Office’s Property Claims Service Group, the Lloyd’s Claim
Office, Swiss Reinsurance Company’s sigma report, or a comparable report or
organization generally recognized by the insurance industry) in the Company’s
“ongoing” businesses (as reported in press releases announcing its financial
results), and underwriting results of all businesses (except “voluntary pools
and other”) included in the Company’s “Other” segment in those press releases.

 “AWARD” shall
mean the amount granted to a Participant by the Committee for a Performance Period.

“BEGINNING TOTAL COMMON STOCKHOLDERS’ EQUITY” shall
mean, for each Performance Period, the Company’s total common stockholders’
equity as reported in the Company’s balance sheet for the beginning of the
Performance Period, excluding net unrealized appreciation or depreciation of
investments.

“BOARD” shall mean the Board of Directors of the
Company.

“CODE” shall mean the Internal Revenue Code of 1986,
as amended.

 

“COMMITTEE” shall mean the Personnel and Compensation
Committee of the Board or any subcommittee thereof which meets the requirements
of Section 162(m)(4)(C) of the Code.

“EXCHANGE ACT” shall mean the Securities Exchange Act
of 1934, as amended.

“EXECUTIVE” shall mean any covered employee as defined
in Section 162(m) of the Code and, in the discretion of the Committee, any
other executive officer of the Company or its Subsidiaries.

 “PARTICIPANT”
shall mean, for each Performance Period, each Executive who is a “covered
employee” (as defined in Section 162(m) of the Code) for that Performance
Period, unless otherwise determined by the Committee in its sole discretion.

“PERFORMANCE PERIOD” shall mean the Company’s fiscal
year or any other period designated by the Committee with respect to which an
Award may be granted.

“PLAN” shall mean The St. Paul Companies, Inc. Senior
Executive Performance Plan, as amended from time to time.

“RETURN ON EQUITY” shall mean, for each Performance
Period, the percentage equivalent to the fraction resulting from dividing
After-Tax Operating Earnings by Beginning Total Common Stockholders’ Equity.

“STOCK PLANS” shall mean The St. Paul Companies, Inc.
Amended and Restated 1994 Stock Incentive Plan and/or any prior and successor
stock plans adopted or assumed by the Company.

“SUBSIDIARY” shall mean any entity that is directly or
indirectly controlled by the Company or any entity, in which the Company has at
least a 50% equity interest.

3.               ADMINISTRATION

The Plan shall be administered by the Committee, which
shall have full authority to interpret the Plan, to establish rules and
regulations relating to the operation of the Plan, to select Participants, to
determine the maximum Awards and the amounts of any Awards and to make all
determinations and take all other actions necessary or appropriate for the
proper administration of the Plan. 
Before any payments are made under the Plan, the Committee shall certify
in writing that the Return on Equity required by Section 4(b) has been
met.  The Committee’s interpretation of
the Plan, and all actions taken within the scope of its authority, shall be
final and binding on the Company, its stockholders and Participants,
Executives, former Executives and their respective successors and assigns.  No member of the Committee shall be eligible
to participate in the Plan.

2

 

4.               DETERMINATION OF AWARDS

(a)   Prior to
the beginning of each Performance Period, or at such later time as may be
permitted by applicable provisions of the Code, the Committee shall establish
for each Participant a maximum Award, expressed as a percentage of the
incentive pool for the Performance Period pursuant to paragraph (b) of this
section, provided that the maximum percentage for any single Participant shall
not exceed 50%.

(b)   If the
Return on Equity for a Performance Period is greater than 8%, the incentive
pool for the Performance Period shall be equal to 1.5% of After-Tax Operating
Earnings.  If the Return on Equity for a
Performance Period is equal to or less than 8%, the incentive pool shall be $0.

(c)   Following
the end of each Performance Period, the Committee may determine to grant to any
Participant an Award, which may not exceed the maximum amount specified in
paragraph (a) of this section for such Participant.  The aggregate amount of all Awards under the Plan for any
Performance Period shall not exceed 100% of the incentive pool pursuant to
paragraph (b) of this section.

5.               PAYMENT OF AWARDS

Each Participant shall be eligible to receive, as soon
as practicable after the amount of such Participant’s Award for a Performance
Period has been determined, payment of all or a portion of that Award.  Awards may be paid in cash, stock,
restricted stock, options, other stock-based or stock-denominated units or any
combination thereof determined by the Committee.  Equity or equity-based awards may be granted under the terms and
conditions of the applicable Stock Plan. 
Payment of the award may be deferred in accordance with a written
election by the Participant pursuant to procedures established by the
Committee.

6.               AMENDMENTS

The Committee may amend the Plan at any time and from
time to time, provided that no such amendment that would require the consent of
the stockholders of the Company pursuant to Section 162(m) of the Code or the
Exchange Act, or any other applicable law, rule or regulation, shall be
effective without such consent.  No such
amendment which adversely affects a Participant’s rights to, or interest in, an
Award granted prior to the date of the amendment shall be effective unless the
Participant shall have agreed thereto in writing.

7.               TERMINATION

The Committee may terminate this Plan at any
time.  In such event, and
notwithstanding any provision of the Plan to the contrary, payment of deferred
amounts plus any earnings may be accelerated with respect to any affected
Participant in the discretion of the Committee and paid as soon as practicable;
but in no event shall the termination of the Plan adversely affect the rights
of any Participant to deferred amounts previously awarded such Participant, plus
any earnings thereon.

3

 

8.               OTHER PROVISIONS

        (a)   No Executive or other person shall have any
claim or right to be granted an Award under this Plan until such Award is
actually granted.  Neither the establishment
of this Plan, nor any action taken hereunder, shall be construed as giving any
Executive any right to be retained in the employ of the Company.  Nothing contained in this Plan shall limit
the ability of the Company to make payments or awards to Executives under any
other plan, agreement or arrangement.

        (b)   The rights and benefits of a Participant
hereunder are personal to the Participant and, except for payments made
following a Participant’s death, shall not be subject to any voluntary or
involuntary alienation, assignment, pledge, transfer, encumbrance, attachment,
garnishment or other disposition.

        (c)   Awards under this Plan shall not constitute
compensation for the purpose of determining participation or benefits under any
other plan of the Company unless specifically included as compensation in such
plan.

        (d)   The Company shall have the right to deduct
from Awards any taxes or other amounts required to be withheld by law.

        (e)   All questions pertaining to the construction,
regulation, validity and effect of the provisions of the Plan shall be
determined in accordance with the laws of the State of Minnesota without regard
to principles of conflict of laws.

        (f)    If any provision of this Plan would cause
Awards not to constitute “qualified performance-based compensation” under
Section 162(m) of the Code, that provision shall be severed from, and shall be
deemed not to be a part of, the Plan, but the other provisions hereof shall
remain in full force and effect.

 

        (g)   No member of the Committee or the Board, and
no officer, employee or agent of the Company shall be liable for any act or
action hereunder, whether of commission or omission, taken by any other member,
or by any officer, agent, or employee, or, except in circumstances involving
bad faith, for anything done or omitted to be done in the administration of the
Plan.

 

9.               EFFECTIVE DATE

The Plan shall be effective as of January 1, 2002,
subject to approval by the stockholders of the Company in accordance with
Section 162(m) of the Code.

4

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