Document:

EX-10.1

 

Exhibit 10.1

CONSULTING AGREEMENT

SEPTEMBER 1, 2006

Wheeling-Pittsburgh Steel Corporation (the “Company”) wishes to retain former employee, Daniel C.
Keaton (the “Consultant), for a period of six months following his retirement on August 31, 2006,
and Mr. Keaton agrees to provide consultation services to Wheeling-Pittsburgh Steel Corporation in
accordance with the following terms and conditions:

Term of Agreement

     This agreement will become effective on September 1, 2006 and end on February 28, 2007.

 Consultation Services

     The Consultant shall provide consultation services to the Company on an “as available” basis
by telephone, fax or email. Consultant agrees that he is an independent contractor, and is not
performing these services as an employee, partner or other relationship. Consultant shall be
solely responsible to pay any taxes owed as a result of fees received pursuant to this Agreement.

Retainer Fee

     The Company shall pay the Consultant a retainer of $12,000 on September 1, 2006.

Prior Agreement and Confidentiality

     Nothing in this Agreement will terminate the provisions contained in the Amended and Restated
Retention Agreement, dated February 15, 2006, between Consultant and the Company (the “Employment
Agreement”), which survive termination of employment, including Section 6(a) thereof concerning
confidentiality. Consultant agrees that any information learned by Consultant during his provision
of services under this Agreement shall be kept confidential under the same terms as such Section 6(a).

     Under no circumstances shall this Agreement be considered an extension of the Employment
Agreement or a new employment agreement under Section 5(a) (vi)(A) of the Employment Agreement.
These post-retirement independent contractor services are being provided at the request of the
Company to assist the Company in transitioning the Consultant’s prior duties as an officer.

 

Further Compensation

     If, by mutual agreement, it is determined that it is necessary for the Consultant to provide
services at the Company’s Wheeling Executive Offices, or at such other location as required, the
Consultant will be paid $100.00 per hour worked up to a maximum of 8 hours per day, and will be
paid mileage, at the rate paid by the Company for business use of a personal car, for miles
traveled between Consultant’s home and the Wheeling Office or such other location as required.
Consultant will not be paid any fee to answer telephonic questions from his home; such services are
part of the services to be provided in exchange for the Retainer Fee above. If a significant
discrete project is requested from the Consultant, which the Chief Executive office has
pre-authorized to be provided from Consultant’s home, then such services may be provided from home
at the above hourly rate. Consultant will be paid the above hourly rate for business travel
(subject to the 8 hour/day total pay limit referred to above), but not for travel time from his
residence to Wheeling. Also, the Company will provide, at no cost to the Consultant, parking space
at the Company’s Parking Garage.

Use of Company Equipment

     The Consultant will have continued use of Company equipment necessary to perform his
consulting services, such as a cell phone and laptop computer.

Out-Of-Town Travel

     The Company will reimburse Consultant for reasonable travel expenses for out-of-town travel
requested by the Company.

Indemnification

     Consultant will be indemnified for any actions to the same extent as the Company is obligated
to provide indemnification to officers in the Company’s By-Laws and Articles of Incorporation, and
shall be named as a covered person in the Company’s Director and Officer Liability Insurance
Policy. Company will not indemnify Consultant for Consultant’s gross negligence or intentional
misconduct.

     Miscellaneous.

     The parties agree that: (a) Entire Agreement. This Agreement represents the entire and
only understanding between the parties on the subject matter hereof and supersedes any other
agreements or understandings between them on such subject matter. (b) Binding Effect,
Successors and Assigns. This Agreement shall be binding upon and inure to the

 

benefit of the heirs, executors, administrators, successors and assigns of the respective parties.
Without the express written consent of the other party, neither the Company nor the Consultant may
assign any duties or right or interest hereunder or right to receive any money hereunder and any
such assignment shall be void; provided, however, that without the Consultant ‘s consent the
Company may assign its rights and obligations hereunder in their entirety to any successor to all
or substantially all of its business, whether effected by merger or otherwise. (c) Severability
and Amendment. In the event any provision of this Agreement shall be determined in any
circumstances to be invalid or unenforceable, such determination shall not affect or impair any
other provision of this Agreement or the enforcement of such provision in other appropriate
circumstances. This Agreement may be modified only by an instrument in writing executed by the
parties hereto. (d) Interpretative Matters; Counterparts. The headings of sections of this
Agreement are for convenience of reference only and shall not affect its meaning or construction.
The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rule of strict construction will be applied against any party.
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. In making proof of this
Agreement it shall not be necessary to produce or account for more than one such counterpart.
(e) Governing Law and Conflicts. This Agreement is to be governed and construed according
to the internal substantive laws of the Commonwealth of Pennsylvania.

IN WITNESS WHEREOF, and intending to be legally bound, the parties have executed this Agreement as
of the date first written above.

	 	 	 	 
	 

	 	WHEELING PITTSBURGH STEEL CORPORATION
	 
	 	 
	 
	 	 
	/s/ Daniel C. Keaton

	 	/s/ James G. Bradley
	 

	 	 
	Daniel C. Keaton

	 	James G. Bradley,

Chief Executive Officerexv10w1

 

Exhibit 10.1

Execution Copy

FOURTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER

     This FOURTH AMENDMENT, dated as of August 31, 2006 (this
“Amendment”), to the Credit Agreement referred to below is by and among (a) ZILA, INC., a
Delaware corporation, ZILA NUTRACEUTICALS, INC. (formerly known as Oxycal Laboratories
Incorporated), an Arizona corporation, ZILA TECHNICAL, INC., an Arizona corporation, ZILA
BIOTECHNOLOGY, INC., an Arizona corporation, ZILA PHARMACEUTICALS, INC., a Nevada corporation, and
ZILA SWAB TECHNOLOGIES, INC., an Arizona corporation (collectively,
the “Borrowers”), (b)
BLACK DIAMOND COMMERCIAL FINANCE, L.L.C., a Delaware corporation, as administrative agent for
Lenders (the “Administrative Agent”), and (c) the Required Lenders party to the Credit
Agreement from time to time.

WITNESSETH

     WHEREAS, the Borrowers, the Lenders and the Administrative Agent are parties to that certain
Credit Agreement, dated as of March 24, 2006 (including all annexes, exhibits and schedules
thereto, and as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”); and

     WHEREAS, the Borrowers request that the Agent and Required Lenders amend certain terms
under the Credit Agreement and waive compliance with certain covenants; and

     WHEREAS, the Administrative Agent and Required Lenders have agreed to the requested waiver and
amendments to the Credit Agreement, in the manner, and on the terms and conditions, provided for
herein.

     NOW THEREFORE, in consideration of the premises and for other good and valuable consideration,
the receipt, adequacy and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

     1. Definitions. Capitalized terms not otherwise defined herein shall have the meanings
ascribed to them in the Credit Agreement.

     2. Amendments
to Section 1 of the Credit Agreement. Section 1.1 of the
Credit Agreement, Definitions, is hereby amended by adding the following definitions in the
appropriate alphabetical order:

          “Fourth
Amendment”: that certain Fourth Amendment to Credit Agreement and Waiver dated
as of August 31, 2006, by and among Borrowers, Administrative Agent and Required Lenders.

          “Fourth Amendment Effective Date”: the date on which all conditions precedent to the
Fourth Amendment have been satisfied or waived by the Administrative Agent and Required Lenders.

 

 

          3.
Amendment to Section 7 Affirmative Covenants of the Credit
Agreement. Section
7 of the Credit Agreement is hereby amended by deleting Section 7.1(d)(i) and
replacing it with the following Section 7.1 (d)(i):

          “(d)
Financial Reporting:

     (i) no later than
September 15, 2006, the unaudited consolidated and
consolidating balance sheets of Holdings and its subsidiaries and the related
unaudited consolidated and consolidating statements of income and the related
unaudited consolidated statements of cash flows for the month ending August 31, 2006
and the portion of the fiscal year through such date, setting forth, in each case in
comparative form to the figures for the previous year, certified by a Responsible
Officer as being fairly stated in all material respects (subject to normal year-end
audit adjustments) and all documents and other certifications required pursuant to
Section 7.2(b) of the Credit Agreement;”

          4.
Amendment to Section 8 Negative Covenants of the Credit
Agreement. Section 8 of the
Credit Agreement is hereby amended by deleting Section 8.1(b)(iii) and replacing it with
the following Section 8.1(b)(iii):

          “(iii)
Minimum Unrestricted Cash. The Borrowers shall have, at the end of each
week, unrestricted book balances of cash and Cash Equivalents for such week ended in an amount not
less than $2,750,000.”

          5.
Limited Waiver. Subject to the fulfillment of the conditions precedent to the
effectiveness of this Amendment set forth below, the Administrative Agent and the Required Lenders
hereby waive Borrowers’ compliance with the Financial Covenants set forth in Section 8.1 (a)(i)
 (Minimum LTM EBITDA with respect to the Nutraceuticals Business) and Section 8.1(b)(i)
(Minimum LTM EBITDA with respect to Borrowers) of the Credit Agreement for the fiscal month ended
July 31, 2006.

          6.
 Representations and Warranties. To induce the Administrative Agent and Lenders to
enter into this Amendment, the Borrowers executing this Amendment jointly and severally represent
and warrant that:

          (a) 
Each Borrower has taken all necessary organizational action to authorize the execution,
delivery and performance of this Amendment. No consent or authorization of, filing with, notice to
or other act by or in respect of, any Governmental Authority or any other Person is required in
connection with the execution, delivery, performance, validity or enforceability of this Amendment,
except (i) consents, authorizations, filings and notices
described in Schedule 5.4, which
consents, authorizations, filings and notices have been obtained or made and are in full force and
effect and (ii) the filings and recordings referred to in
Section 5.19.

          (b) 
This Amendment has been duly executed and delivered by or on behalf of each of the
Borrowers.

          (c) 
This Amendment constitutes a legal, valid and binding obligation of each Borrower,
enforceable against each such Borrower in accordance with its terms, except

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as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting the enforcement of creditors’ rights generally and by general equitable
principles (whether enforcement is sought by proceedings in equity or at law).

          (d) No Default or Event of Default has occurred and is continuing after giving effect to this
Amendment.

          (e) No litigation, investigation or proceeding of or before any arbitrator or Governmental
Authority is pending or, to the knowledge of any Borrower, threatened by or against any Group
Member or against any of their respective properties or revenues (a) with respect to any of the
Loan Documents or any of the transactions contemplated hereby or thereby, or (b) that could
reasonably be expected to have a Material Adverse Effect.

          (f) The representations and warranties of each Borrower contained in the Credit Agreement and
each other Loan Document shall be true and correct on and as of the Fourth Amendment Effective Date
with the same effect as if such representations and warranties had been made on and as of such
date, except that any such representation or warranty which is expressly made only as of a
specified date need be true only as of such date.

          7. No Other Amendments/Waivers. Except as expressly provided herein, (a) the Credit
Agreement shall be unmodified and shall continue to be in full force and effect in accordance with
its terms and (b) this Amendment shall not be deemed a waiver of any term or condition of any Loan
Document and shall not be deemed to prejudice any right or rights which the Administrative Agent or
any Lender may now have or may have in the future under or in connection with any Loan Document or
any of the instruments or agreements referred to therein, as the same may be amended from time to
time.

          8. Outstanding Indebtedness; Waiver of Claims. Each Borrower hereby acknowledges and
agrees that as of August 31, 2006, the aggregate outstanding principal amount of the Term Loan is
$19,884,172.41 (collectively, the “Outstanding Obligations”), and that such principal amounts are
payable pursuant to the Credit Agreement without defense, offset, withholding, counterclaim or
deduction of any kind. Each Borrower hereby waives, releases, remises and forever discharges the
Administrative Agent, Lenders and each other Indemnified Person from any and all claims, suits,
actions, investigations, proceedings or demands arising out of or in connection with the Credit
Agreement (collectively, “Claims”), whether based in contract, tort, implied or express warranty,
strict liability, criminal or civil statute or common law of any kind or character, known or
unknown, which such Borrower ever had, now has or might hereafter have against the Administrative
Agent or Lenders which relates, directly or indirectly, to any acts or omissions of the
Administrative Agent, Lenders or any other Indemnified Person on or prior to the date hereof,
provided that, the Borrowers do not waive any Claim solely to the extent such Claim relates
to the Administrative Agent’s or any Lender’s gross
negligence or willful misconduct.

          9. Expenses. Each Borrower hereby reconfirms its obligations pursuant
to Sections 4.5 and 7.11 of the Credit Agreement to pay and reimburse the Administrative Agent and Lenders for all reasonable costs and expenses (including, without limitation,
reasonable fees of counsel) incurred in connection with the negotiation, preparation,

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execution and delivery of this Amendment and all other documents and instruments delivered
in connection herewith.

          10. Effectiveness. This Amendment shall become effective as of the date hereof only
upon satisfaction in full in the judgment of the Administrative Agent of each of the following
conditions on or prior to August 31, 2006 (such date, the
“Fourth Amendment Effective
Date”) and September 5, 2006 with respect to Section 10(c):

          (a) Amendment. The Administrative Agent shall have received six (6) original copies of
this Amendment duly executed and delivered by the Administrative Agent, Required Lenders and each
of the Borrowers.

          (b) Payment of Fees and Expenses. The Borrowers shall have paid to the Administrative
all costs, fees and expenses invoiced and owing in connection with this Amendment and the other
Loan Documents and due to the Administrative Agent (including, without limitation, reasonable legal
fees and expenses).

          (c) Amendment Fee. On or before September 5, 2006, the Borrowers shall pay to the
Administrative Agent, for the pro-rata account of the Lenders, an amendment fee in the amount of
$100,000.

          (d) Representations and Warranties. The representations and warranties of or on behalf
of each Borrower in this Amendment shall be true and correct on and as of the Fourth Amendment
Effective Date.

          11. GOVERNING LAW. THIS AMENDMENT SHALL BE
GOVERNED BY, AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK.

          12. Counterparts. This Amendment may be executed by the parties hereto on any number
of separate counterparts and all of said counterparts taken together shall be deemed to constitute
one and the same instrument.

(SIGNATURE PAGE FOLLOWS)

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          IN WITNESS WHEREOF, this Amendment has been duly executed as of the date
first written above.

	 	 	 	 	 
	BORROWERS:
	 
	 	 	 	 
	ZILA, INC.
	 
	 	 	 	 
	By:

	 	/s/ Gary V. Klinefelter
 

Name: Gary V. Klinefelter
	 	 
	 

	 	Title: Vice president	 	 
	 
	 	 	 	 
	ZILA TECHNICAL, INC.
	 
	 	 	 	 
	By:

	 	/s/ Gary V. Klinefelter	 	 
	 

	 	 	 	 
	 

	 	Name: Gary V. Klinefelter	 	 
	 

	 	Title: Vice president	 	 
	 
	 	 	 	 
	ZILA BIOTECHNOLOGY, INC.
	 
	 	 	 	 
	By:

	 	/s/ Gary V. Klinefelter	 	 
	 

	 	 	 	 
	 

	 	Name: Gary V. Klinefelter	 	 
	 

	 	Title: Vice president	 	 
	 
	 	 	 	 
	ZILA NUTRACEUTICALS, INC.
	 
	 	 	 	 
	By:

	 	/s/ Gary V. Klinefelter	 	 
	 

	 	 	 	 
	 

	 	Name: Gary V. Klinefelter	 	 
	 

	 	Title: Vice president	 	 
	 
	 	 	 	 
	ZILA PHARMACEUTICALS, INC.
	 
	 	 	 	 
	By:

	 	/s/ Gary V. Klinefelter	 	 
	 

	 	 	 	 
	 

	 	Name: Gary V. Klinefelter	 	 
	 

	 	Title: Vice President	 	 

 

 

	 	 	 	 	 
	ADMINISTRATIVE AGENT:
	 
	 	 	 	 
	BLACK DIAMOND COMMERCIAL FINANCE, L.L.C.
	 
	 	 	 	 
	By:

	 	/s/ Robert Mello	 	 
	 

	 	 	 	 
	 

	 	Name: Robert Mello	 	 
	 

	 	Title: Vice President	 	 

 

 

	 	 	 	 	 
	LENDER:
	 
	 	 	 	 
	BDC FINANCE, LLC
	 
	 	 	 	 
	By: Black Diamond-Capital Management, 

L.L.C., as Its Investment
Manager
	 
	 	 	 	 
	By:

	 	/s/ James J. Zenni	 	 
	 

	 	 

Name: James J. Zenni, Jr.
	 	 
	 

	 	Title: President & Managing Partner	 	 
	 

	 	Black Diamond Capital Management,
L.L.C.

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