Document:

EX-10.4 ENVIRONMENTAL INDEMNITY AGREEMENT

 

Exhibit 10.4

ENVIRONMENTAL INDEMNITY

     ENVIRONMENTAL INDEMNITY, is made as of June 9, 2006 (this “Agreement”), by BLUELINX
HOLDINGS INC., a Delaware corporation (“Indemnitor”), having an office at 4300 Wildwood
Parkway, Atlanta, Georgia 30339, for the benefit of GERMAN AMERICAN CAPITAL CORPORATION, a Maryland
corporation, on behalf of the holders of the Notes (“Lender”), having an office at 60 Wall
Street, 10th Floor, New York, New York 10005.

RECITALS:

     WHEREAS, the entities listed on Exhibit A attached hereto and incorporated herein,
each a Delaware limited liability company, are each hereinafter referred to an “Individual
Borrower” and collectively as “Borrower”.

     WHEREAS, ABP MD (Baltimore) LLC, a Delaware limited liability company (“Maryland Loan
Guarantor”) and the Individual Borrowers (other than Maryland Borrower), each own certain real
property, and the improvements located thereon, all as more particularly described in Exhibit
B attached hereto and incorporated herein (each an “Individual Property” and
collectively, the “Property”);

     WHEREAS, on the date hereof, in accordance with the terms of a Loan and Security Agreement,
dated as of the date hereof (as amended, restated, replaced, supplemented, or otherwise modified
from time to time, the “Loan Agreement”), among Borrower, Maryland Loan Guarantor and
Lender, Lender is making a loan to Borrower in the principal amount of $295,000,000 (the
“Loan”), which Loan is evidenced by that certain Amended and Restated Note A-1 in the
aggregate principal amount of $147,500,000 and that certain Amended and Restated Note A-2 in the
aggregate principal amount of $147,500,000, each dated as of the date hereof (as amended, restated,
replaced, supplemented, or otherwise modified from time to time, collectively, the “Note”),
made by Borrower in favor of Lender and secured by certain mortgages, deeds of trust and/or deeds
to secure debt, each dated as of the date hereof (as amended, restated, replaced, supplemented, or
otherwise modified from time to time, collectively, the “Security Instrument”), from the
applicable Individual Borrower(s) (other than Maryland Borrower) and the Maryland Loan Guarantor to
Lender, as mortgagee, or to certain trustees for the benefit of Lender, as beneficiary, as
applicable, and the other Loan Documents (as defined in the Loan Agreement);

     WHEREAS, Indemnitor is the owner of a direct or indirect beneficial interest in Borrower and
Maryland Loan Guarantor and will derive substantial benefit from the Loan;

     WHEREAS, as a condition to making the Loan, Lender has required Indemnitor to deliver this
Agreement for the benefit of Lender; and

     WHEREAS, the forgoing recitals are intended to form an integral part of this Agreement.

 

 

     NOW, THEREFORE, in consideration of the foregoing premises, Ten Dollars ($10.00) paid in hand,
and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Indemnitor agrees as follows:

1. Definitions.

(a) The following terms shall have the meaning ascribed thereto:

“Agreement”: Shall have the meaning provided in the first paragraph.

“Borrower”: Shall have the meaning provided in the Recitals.

“Environmental Law”: Shall mean any federal, state or local statute, regulation or
ordinance or any judicial or administrative decree or decision, whether now existing or
hereinafter enacted, promulgated or issued, with respect to the protection of human health
or the environment, or any Hazardous Materials, drinking water, groundwater, wetlands,
landfills, open dumps, storage tanks, underground storage tanks, solid waste, waste water,
storm water run-off, waste emissions or wells. Without limiting the generality of the
foregoing, the term shall encompass each of the following statutes, and regulations
promulgated thereunder, and amendments and successors to such statutes and regulations, as
may be enacted and promulgated from time to time: (i) the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 (codified in scattered sections of 26
U.S.C.; 33 U.S.C.; 42 U.S.C. and 42 U.S.C. §9601 et seq.); (ii) the
Resource Conservation and Recovery Act of 1976 (42 U.S.C. §6901 et seq.);
(iii) the Hazardous Materials Transportation Act (49 U.S.C. §1801 et seq.);
(iv) the Toxic Substances Control Act (15 U.S.C. §2061 et seq.); (v) the
Clean Water Act (33 U.S.C. §1251 et seq.); (vi) the Clean Air Act (42
U.S.C. §7401 et seq.); (vii) the Safe Drinking Water Act (21 U.S.C. §349;
42 U.S.C. §201 and §300f et seq.); (viii) the National Environmental Policy
Act of 1969 (42 U.S.C. §4321); (ix) the Superfund Amendment and Reauthorization Act of 1986
(codified in scattered sections of 10 U.S.C., 29 U.S.C., 33 U.S.C. and 42 U.S.C.); and (x)
Title III of the Superfund Amendment and Reauthorization Act (40 U.S.C. §1101 et
seq.).

“Hazardous Materials”: Shall mean each and every element, compound, chemical
mixture, contaminant, pollutant, material, waste or other substance which is defined,
determined or identified as hazardous or toxic under any Environmental Law. Without
limiting the generality of the foregoing, the term shall mean and include:

     (i) “hazardous substances” as defined in the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, the Superfund Amendment and
Reauthorization Act of 1986, or Title III of the Superfund
Amendment and Reauthorization Act, each as amended, and regulations promulgated
thereunder; excluding, however, common maintenance and cleaning

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products regularly found at
properties with a standard of operation and maintenance comparable to the Property;

     (ii) “hazardous waste” and “regulated substances” as defined in the
Resource Conservation and Recovery Act of 1976, as amended, and regulations promulgated
thereunder;

     (iii) “hazardous materials” as defined in the Hazardous Materials
Transportation Act, as amended, and regulations promulgated thereunder; and

     (iv) “chemical substance or mixture” as defined in the Toxic Substances
Control Act, as amended, and regulations promulgated thereunder.

“Indemnified Parties”: Shall mean Lender, its parent, subsidiaries and Affiliates,
each of their respective shareholders, directors, officers, employees and agents, and the
successors and assigns of any of them; and “Indemnified Party” shall mean any one of the
Indemnified Parties.

“Indemnitor”: Shall have the meaning provided in the first paragraph.

“Individual Borrower”: Shall have the meaning provided in the Recitals.

“Individual Property”: Shall have the meaning provided in the Recitals.

“Lender”: Shall have the meaning provided in the first paragraph.

“Loan Agreement”: Shall have the meaning provided in the Recitals.

“Maryland Loan Guarantor”: Shall have the meaning provided in the Recitals.

“Note”: Shall have the meaning provided in the Recitals.

“Release”: Shall mean any spilling, leaking, pumping, pouring, emitting, emptying,
discharging, injecting, storing, escaping, leaching, dumping, discarding, burying,
abandoning, or disposing into the environment.

“Security Instrument”: Shall have the meaning provided in the Recitals.

“Threat of Release”: Shall mean a substantial likelihood of a Release which
requires action to prevent or mitigate damage to the environment which may result from such
Release.

     (b) Capitalized terms used but not otherwise defined herein shall have the respective meanings
given thereto in the Loan Agreement, unless otherwise expressly provided herein. All references to
sections shall be deemed to be references to Sections of this Agreement, unless otherwise
indicated.

     2. Indemnity Agreement. Indemnitor covenants and agrees, at its sole cost and
expense, to indemnify, defend (at trial and appellate levels and with attorneys,

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consultants and
experts selected by Indemnitor and reasonably acceptable to Lender) and hold harmless each
Indemnified Party against and from any and all liens, damages, losses, liabilities, obligations,
settlement payments, penalties, assessments, citations, directives, claims, litigation, demands,
defenses, judgments, suits, proceedings, costs, disbursements or expenses of any kind or of any
nature whatsoever (including, without limitation, but subject to the provisions hereof, reasonable
attorneys’, consultants’ and experts’ fees and disbursements incurred in investigating, defending
against, settling or prosecuting any claim, litigation or proceeding) which may at any time be
imposed upon, incurred by or asserted or awarded against such Indemnified Party or any Individual
Property arising directly or indirectly from or out of: (A) the Release or Threat of Release of
any Hazardous Materials on, in, under, from or affecting all or any portion of any Individual
Property, regardless of whether or not caused by or within the control of Borrower, Maryland Loan
Guarantor or Indemnitor,; (B) the Release or Threat of Release of Hazardous Materials at any other
location if the Hazardous Materials were generated, treated, stored, transported or disposed of by
or on behalf of the Borrower or Maryland Loan Guarantor, (C) the violation of any Environmental
Laws relating to or affecting any Individual Property or Borrower or Maryland Loan Guarantor,
whether or not caused by or within the control of Borrower, Maryland Loan Guarantor or Indemnitor;
(D) the failure of Indemnitor to comply fully with the terms and conditions of this Agreement; (E)
the violation of any Environmental Laws as a result of actions or omissions of Borrower, Maryland
Loan Guarantor and/or Indemnitor with respect to other real property of Borrower, Maryland Loan
Guarantor or Indemnitor which gives or may give rise to any rights whatsoever in any party with
respect to any Individual Property by virtue of any Environmental Laws; or (F) the enforcement of
this Agreement, including, without limitation, (i) the costs of assessment, containment and/or
removal of any and all Hazardous Materials from all or any portion of any Individual Property, any
surrounding areas or any other areas, (ii) the costs of any actions taken in response to a Release
or Threat of Release of any Hazardous Materials on, in, under or affecting all or any portion of
any Individual Property, any surrounding areas, or any other areas to prevent or minimize such
Release or Threat of Release so that it does not migrate or otherwise jeopardize the present or
future public health, safety, welfare or the environment and (iii) costs incurred to comply with
the Environmental Laws in connection with all or any portion of any Individual Property or any
surrounding areas or other areas affected by any Release or Threat of Release in, under or from all
or any portion of any Individual Property. Indemnitor’s obligations hereunder are separate and
distinct from its obligations under the other Loan Documents, and Lender’s and the other
Indemnified Parties’ rights under this Agreement shall be in addition to all rights of Lender under
the other Loan Documents. Notwithstanding anything herein to the contrary, the foregoing
indemnification shall not apply to any event or condition described in the foregoing clauses (A)
and (C) if such event or condition (1) is caused solely by, or results solely from, the gross
negligence or willful misconduct of any of the Indemnified Parties or (2) did not occur prior to
(x) Lender or its designee taking title the applicable Individual Property, whether by foreclosure,
conveyance in lieu thereof or otherwise or (y) Lender or its designee taking possession
and control of the applicable Individual Property and excluding Borrower or Maryland Loan
Guarantor (as applicable) and Indemnitor
 from such Individual Property following the occurrence of
an Event of Default. Subject to the

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foregoing, Indemnitor shall be liable for any and all losses
or damages incurred by the Lender relating to the presence, Release, or Threatened Release of any
Hazardous Materials on or about any Individual Property as a result of the acts or negligent
omissions of Borrower, Maryland Loan Guarantor or Indemnitor, or any principal, officer, member or
partner of Borrower, Maryland Loan Guarantor or Indemnitor. If any action or other proceeding
shall be brought against any Indemnified Party with respect to any matter for which indemnification
is required by Indemnitor pursuant to this Agreement, upon written notice from Indemnitor to Lender
(given reasonably promptly following Lender’s notice to Indemnitor of such action or proceeding),
Indemnitor shall be entitled to assume the defense thereof, at Indemnitor’s expense, with counsel
reasonably acceptable to Lender; provided, however, Lender may, at its own expense, retain separate
counsel to participate in such defense, but such participation shall not be deemed to give Lender a
right to control such defense, which right Indemnitor expressly retains. Notwithstanding the
foregoing, if any action or proceeding shall be brought against an Indemnified Party with respect
to any matter for which indemnification is required by Indemnitor pursuant to this Agreement and
the named defendants therein include both Indemnitor and an Indemnified Party, if such Indemnified
Party reasonably believes (and advises Indemnitor in writing as such) that there are legal defenses
available to it that are different from or in addition to those available to Indemnitor or that
there otherwise exists a conflict or potential conflict between Indemnitor and such Indemnified
Party that makes separate representation advisable, then such Indemnified Party shall have the
right, at the sole cost and expense of Indemnitor, to engage a separate counsel in any such action
and to participate in the defense thereof. Notwithstanding the foregoing, Lender and the other
Indemnified Parties agree to seek recovery against Indemnitor for losses for which they are
indemnified under this Agreement only after a claim for such losses has been filed under any
Environmental Insurance Policy then in full force and effect which covers such losses and Lender
has received any written communication from the insurer rejecting such claim. Notwithstanding
anything to the contrary in this Agreement, in no event shall the liability of Indemnitor under
this Agreement exceed an aggregate amount of Fifteen Million Dollars ($15,000,000.00).

     3. Survival.

     (a) This Agreement and the indemnities provided herein shall survive the repayment of the Loan
and, subject to the terms of such indemnity, any exercise of any remedies under the Loan Documents,
including without limitation, any remedy in the nature of foreclosure, and shall not merge with any
assignment or conveyance given by Borrower or Maryland Loan Guarantor to Lender in lieu of
foreclosure.

     (b) It is agreed and intended by Indemnitor and Lender that this Agreement and the indemnities
provided herein may be assigned or otherwise transferred by Lender to its successors and assigns
and to any subsequent purchaser of all or any portion of the
Loan by, through or under Lender, without notice to Indemnitor and without any further consent
of Indemnitor. To the extent consent of any such assignment or transfer is required by law,
advance consent to any such assignment or transfer is hereby given by Indemnitor in order to
maximize the extent and effect of the indemnity given hereby.

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     4. Miscellaneous.

     (a) No Waiver. The liabilities of Indemnitor under this Agreement shall in no way be
limited or impaired by, and Indemnitor hereby consents to and agrees to be bound by, any amendment
or modification of the provisions of the Loan Documents to or with Lender by Borrower or Maryland
Loan Guarantor or any Person who succeeds Borrower, Maryland Loan Guarantor or any other Person as
owner of any portion of any Individual Property. In addition, notwithstanding any terms of any of
the Loan Documents to the contrary, the liability of Indemnitor under this Agreement shall in no
way be limited or impaired by: (i) any extensions of time for performance required by any of the
Loan Documents; (ii) any sale, assignment or foreclosure of the Note or the Loan Documents or any
sale or transfer of all or part of any Individual Property; (iii) the accuracy or inaccuracy of the
representations and warranties made by Borrower or Maryland Loan Guarantor under any of the Loan
Documents; (iv) the release of Borrower, Maryland Loan Guarantor or any other Person from
performance or observance of any of the agreements, covenants, terms or conditions contained in the
Loan Documents by operation of law, Lender’s voluntary act, or otherwise; (v) the release or
substitution, in whole or in part, of any security for the Loan; or (vi) Lender’s failure to record
the Security Instrument or file any UCC-1 financing statements (or Lender’s improper recording or
filing of any thereof) or to otherwise perfect, protect, secure or insure any security interest or
lien given as security for the Loan; and, in any such case, whether with or without notice to
Indemnitor and with or without consideration. Indemnitor acknowledges and agrees that, except as
otherwise set forth herein, Indemnitor is personally liable for the indemnification obligations set
forth in this Agreement and the personal liability of Indemnitor under this Agreement is not
limited by the provisions of Section 18.1.1 of the Loan Agreement or any other exculpatory
provision in any of the Loan Documents limiting Lender’s recourse to property encumbered by the
Loan Documents or to any other security or limiting Lender’s rights to a deficiency judgment
against Borrower or Maryland Loan Guarantor.

     (b) MARSHALLING. INDEMNITOR WAIVES ANY RIGHT OR CLAIM OF RIGHT TO CAUSE A MARSHALLING
OF THE ASSETS OF BORROWER OR MARYLAND LOAN GUARANTOR OR TO CAUSE LENDER TO PROCEED AGAINST ANY OF
THE SECURITY FOR THE LOAN BEFORE PROCEEDING UNDER THIS AGREEMENT AGAINST INDEMNITOR OR TO PROCEED
AGAINST INDEMNITOR OR BORROWER OR MARYLAND LOAN GUARANTOR IN ANY PARTICULAR ORDER. INDEMNITOR
AGREES THAT ANY PAYMENTS REQUIRED TO BE MADE HEREUNDER SHALL BECOME DUE AND PAYABLE TEN (10) DAYS
AFTER DEMAND. INDEMNITOR EXPRESSLY WAIVES AND
RELINQUISHES ALL RIGHTS AND REMEDIES (INCLUDING ANY RIGHTS OF SUBROGATION) ACCORDED BY
APPLICABLE LAW TO INDEMNITOR.

     (c) Joint and Several Obligation. If Indemnitor consists of more than one Person or
entity, each shall be jointly and severally liable to perform the obligations of Indemnitor
hereunder. Any one of Borrower, Maryland Loan Guarantor or one or more parties constituting
Indemnitor or any other party liable upon or in respect of this

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Agreement or the Loan may be
released without affecting the liability of any party not so released.

     (d) Further Assurances. Indemnitor shall execute and acknowledge (or cause to be
executed and acknowledged) and deliver to Lender all documents, and take all actions, reasonably
required by Lender from time to time to confirm the rights created or now or hereafter intended to
be created under this Agreement, to protect and further the validity and enforceability of this
Agreement or otherwise carry out the purposes of this Agreement.

     (e) Notices. Any notice, election, request, demand, report or statement which by any
provision of this Agreement is required or permitted to be given or served hereunder shall be in
writing and shall be given or served by (i) hand delivery against receipt, (ii) next day delivery
by any nationally recognized overnight courier service providing evidence of the date of delivery
or (iii) certified mail return receipt requested, postage prepaid. Any notice shall be addressed
to the addresses set forth below or to such other address as shall be designated by such party in a
written notice to the other party.

	 	 	 
	If to Indemnitor:

	 	BlueLinx Holdings, Inc.
	 

	 	4300 Wildwood Parkway
	 

	 	Atlanta, Georgia 30339
	 

	 	Attention: Mr. David Morris, CFO & Treasurer
	 
	 	 
	with a copy to:

	 	Schulte Roth & Zabel LLP
	 

	 	919 Third Avenue
	 

	 	New York, New York 10022
	 

	 	Attention: Jeffrey A. Lenobel, Esq.
	 
	 	 
	If to Lender:

	 	German American Capital Corporation
	 

	 	60 Wall Street
	 

	 	New York, New York 10005
	 

	 	Attention: Todd Sammann and General Counsel
	 
	 	 
	with a copy to:

	 	Wachovia Bank, National Association
	 

	 	375 Park Avenue, 5th Floor
	 

	 	New York, New York 10022
	 

	 	Attention: Mr. Peter Scola
	 
	 	 
	and copy to:

	 	Wachovia Bank, National Association, as Servicer, at such notice address as shall be
designated by notice delivered in accordance with this Section.
	 
	 	 
	and copy to:

	 	Skadden, Arps, Slate, Meagher & Flom LLP
	 

	 	Four Times Square

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New York, New York 10036

Attention: Harvey R. Uris, Esq.

     All notices, elections, requests and demands required or permitted under this Agreement shall
be in the English language. All notices, elections, requests and demands under this Agreement
shall be effective and deemed received upon the earliest of (i) the actual receipt of the same by
personal delivery or otherwise, (ii) one (1) Business Day after being deposited with a nationally
recognized overnight courier service as required above or (iii) three (3) Business Days after being
deposited in the United States mail as required above. Rejection or other refusal to accept or the
inability to deliver because of changed address of which no notice was given as herein required
shall be deemed to be receipt of the notice, election, request, or demand sent.

     (f) Entire Agreement. This Agreement constitutes the entire and final agreement
between Indemnitor and Lender with respect to the subject matter hereof and may only be changed,
amended, modified or waived by an instrument in writing signed by Indemnitor and Lender.

     (g) No Waiver. No waiver of any term or condition of this Agreement, whether by
delay, omission or otherwise, shall be effective unless in writing and signed by the party sought
to be charged, and then such waiver shall be effective only in the specific instance and for the
purpose for which given. No delay by any of Lender, any Individual Borrower or Maryland Loan
Guarantor in exercising any right, power or privilege available to it under this Agreement or any
other Loan Document shall operate as a waiver of any privilege, power or right of such party
hereunder.

     (h) Successors and Assigns. This Agreement shall be binding upon Indemnitor and its
successors and assigns and shall inure to the benefit of Lender and its successors and permitted
assigns. Indemnitor, without the prior written consent of Lender in each instance, may assign,
transfer or set over to another, in whole or in part, all or any part of its benefits, rights,
duties and obligations hereunder, including, but not limited to, performance of and compliance with
conditions hereof, provided that such assignment shall not release Indemnitor of its obligations
hereunder.

     (i) Captions. All paragraph, section, exhibit and schedule headings and captions
herein are used for reference only and in no way limit or describe the scope or intent of, or in
any way affect, this Agreement.

     (j) Counterparts. This Agreement may be executed in counterparts, each of which shall
be an original and all of which, when taken together, shall constitute one binding Agreement.

     (k) Severability. The provisions of this Agreement are severable, and if any one
clause or provision hereof shall be held invalid or unenforceable in whole or in part, then such
invalidity or unenforceability shall affect only such clause or provision, or part thereof, and not
any other clause or provision of this Agreement.

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     (l) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CHOICE OF LAW RULES. INDEMNITOR AGREES
THAT ANY SUIT FOR THE ENFORCEMENT OF THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF
NEW YORK OR ANY FEDERAL COURT SITTING THEREIN AND CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH
COURT AND THE SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON INDEMNITOR IN THE MANNER AND AT
THE ADDRESS SPECIFIED FOR NOTICES IN THIS AGREEMENT. INDEMNITOR HEREBY WAIVES ANY OBJECTION THAT
IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS
BROUGHT IN AN INCONVENIENT COURT.

     (m) JURY TRIAL WAIVER. INDEMNITOR AND, BY ITS ACCEPTANCE OF THIS AGREEMENT, LENDER,
AND ALL PERSONS CLAIMING BY, THROUGH OR UNDER INDEMNITOR OR LENDER, HEREBY EXPRESSLY, KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION (I) ARISING UNDER THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, ANY PRESENT OR
FUTURE MODIFICATION THEREOF OR (II) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE
DEALINGS OF INDEMNITOR OR LENDER WITH RESPECT TO THIS AGREEMENT (AS NOW OR HEREAFTER MODIFIED) OR
ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE
TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER SUCH CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION IS NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE;
AND EACH OF INDEMNITOR AND LENDER HEREBY AGREES AND CONSENTS THAT AN ORIGINAL COUNTERPART OR A COPY
OF THIS SECTION MAY BE FILED WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT HERETO TO THE WAIVER
OF ANY RIGHT TO TRIAL BY JURY. EACH OF INDEMNITOR AND LENDER ACKNOWLEDGES THAT IT HAS CONSULTED
WITH LEGAL COUNSEL REGARDING THE MEANING OF THIS WAIVER AND ACKNOWLEDGES THAT THIS WAIVER IS AN
ESSENTIAL INDUCEMENT FOR THE MAKING OF THE LOAN. THIS WAIVER SHALL SURVIVE THE REPAYMENT OF THE
LOAN.

     (n) Counterclaims and Other Actions. Indemnitor hereby expressly and unconditionally
waives, in connection with any suit, action or proceeding brought by Lender on this Agreement, any
and every right it may have to (i) interpose any counterclaim therein (other than a counterclaim
which can only be asserted in the suit, action or proceeding brought by Lender on this Agreement
and cannot be maintained in a separate action) and (ii) have any such suit, action or proceeding
consolidated with any other or separate suit, action or proceeding.

[REMAINDER OF PAGE INTENTIONALLY BLANK]

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     IN WITNESS WHEREOF, Indemnitor has executed and delivered this Agreement as of the day and
year first written above.

	 	 	 	 	 
	 	BLUELINX HOLDINGS INC., a Delaware corporation

 	 
	 	By:  	/s/ David J. Morris
 	 
	 	Name:	David J. Morris   		 
	 	Title:	CFO  	 	 
	 

 

 

EXHIBIT A

Borrower

ABP AL (MIDFIELD) LLC

ABP AR (LITTLE ROCK) LLC

ABP CA (CITY OF INDUSTRY) LLC

ABP CA (NATIONAL CITY) LLC

ABP CA (NEWARK) LLC

ABP CA (RIVERSIDE) LLC

ABP CO I (DENVER) LLC

ABP CO II (DENVER) LLC

ABP CT (NEWTOWN) LLC

ABP FL (LAKE CITY) LLC

ABP FL (MIAMI) LLC

ABP FL (PENSACOLA) LLC

ABP FL (TAMPA) LLC

ABP FL (YULEE) LLC

ABP GA (LAWRENCEVILLE) LLC

ABP IA (DES MOINES) LLC

ABP IL (UNIVERSITY PARK) LLC

ABP IN (ELKHART) LLC

ABP KY (INDEPENDENCE) LLC

ABP LA (SHREVEPORT) LLC

ABP MA (BELLINGHAM) LLC, d/b/a ABP MA (Bellingham) Management

ABP MD (BALTIMORE) SUBSIDIARY LLC

ABP ME (PORTLAND) LLC

ABP MI (GRAND RAPIDS) LLC

ABP MI (DETROIT) LLC

ABP MN (MAPLE GROVE) LLC

ABP MN (EAGAN) LLC

ABP MO (BRIDGETON) LLC

ABP MO (KANSAS CITY) LLC

ABP MO (SPRINGFIELD) LLC

ABP MS (PEARL) LLC

ABP NC (BUTNER) LLC

ABP NC (CHARLOTTE) LLC

ABP ND (NORTH FARGO) LLC

ABP NJ (DENVILLE) LLC

ABP NM (ALBUQUERQUE) LLC

ABP NY (YAPHANK) LLC

ABP OH (TALMADGE) LLC

ABP OK (TULSA) LLC

ABP OR (BEAVERTON) LLC

ABP PA (ALLENTOWN) LLC

ABP PA (STANTON) LLC

A-1

 

 

ABP SC (CHARLESTON) LLC

ABP SD (SIOUX FALLS) LLC

ABP TN (ERWIN) LLC

ABP TN (MEMPHIS) LLC

ABP TN (NASHVILLE) LLC

ABP TX (EL PASO) LLC, d/b/a Delaware ABP TX (El Paso) LLC

ABP TX (FORT WORTH) LLC, d/b/a Delaware ABP TX (Fort Worth) LLC

ABP TX (HARLINGEN) LLC, d/b/a Delaware ABP TX (Harlingen) LLC

ABP TX (HOUSTON) LLC, d/b/a Delaware ABP TX (Houston) LLC

ABP TX (LUBBOCK) LLC, d/b/a Delaware ABP TX (Lubbock) LLC

ABP TX (SAN ANTONIO) LLC, d/b/a Delaware ABP TX (San Antonio) LLC

ABP VA (RICHMOND) LLC

ABP VA (VIRGINIA BEACH) LLC

ABP VT (SHELBURNE) LLC

ABP WA (WOODINVILLE) LLC

ABP WI (WAUSAU) LLC

A-2

 

 

EXHIBIT B

Legal Descriptions

[To Be Attached]

B-1EX-10.5 THE FOURTH AMENDMENT TO THE LOAN AGREEMENT

 

Exhibit 10.5

FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT AND CONSENT

          THIS FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT AND CONSENT (this “Amendment”),
dated as of June 9, 2006, is entered into by and among the financial institutions signatory hereto
(each a “Lender” and collectively the “Lenders”), Wachovia Bank, National
Association, successor by merger to Congress Financial Corporation (“Wachovia”), as
administrative and collateral agent for the Lenders and for the Bank Product Providers (in such
capacity, “Administrative and Collateral Agent”), Wachovia, as a co-lead arranger for the
credit facility (in such capacity, a “Co-Lead Arranger”) and as a co-syndication agent for
the credit facility (in such capacity, a “Co-Syndication Agent”), Bank of America, N.A.,
Wells Fargo Foothill, LLC, and JPMorgan Chase Bank, N.A., formerly known as JPMorgan Chase Bank, as
documentation agents (in such capacities, each a “Documentation Agent” and collectively the
“Documentation Agents”) and BlueLinx Corporation, a Georgia corporation
(“Borrower”).

RECITALS

     A. Borrower, Administrative and Collateral Agent, the Co-Lead Arrangers, the Co-Syndication
Agents, the Documentation Agents and the Lenders have previously entered into that certain Loan and
Security Agreement dated May 7, 2004 (as amended, restated, supplemented or otherwise modified from
time to time, the “Loan Agreement”), pursuant to which the Lenders have made certain loans
and financial accommodations available to Borrower. Terms used herein without definition shall
have the meanings ascribed to them in the Loan Agreement.

     B. Borrower, Administrative and Collateral Agent, Wachovia, as a Co-Lead Arranger and as a
Co-Syndication Agent, the Documentation Agents and the Lenders now wish to amend the Loan Agreement
on the terms and conditions set forth herein.

     C. Borrower is entering into this Amendment with the understanding and agreement that, except
as specifically provided herein, none of Administrative and Collateral Agent’s, either Co-Lead
Arranger’s, either Co-Syndication Agent’s, any Documentation Agent’s or any Lender’s rights or
remedies as set forth in the Loan Agreement is being waived or modified by the terms of this
Amendment.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

     1. Amendments to Loan Agreement.

          (a) Any references to “Adjusted Excess Availability” contained in the Loan Agreement are
hereby amended to be references to “Modified Adjusted Excess Availability”.

1

 

          (b) Effective as of June 1, 2006, Section 1.69(a) of the Loan Agreement is hereby amended and
restated to read in its entirety as follows:

          “(a) Subject to subsections (b) and (c) of this Section 1.69:

	 	(i)	 	as to Prime Rate Loans, a per annum rate equal
to the Prime Rate; and
	 
	 	(ii)	 	as to Eurodollar Rate Loans, a per annum rate
equal to the Adjusted Eurodollar Rate (based on the Eurodollar Rate
applicable for the Interest Period selected by Borrower as in effect
three (3) Business Days after the date of receipt by Administrative and
Collateral Agent of the request of Borrower for such Eurodollar Rate
Loans in accordance with the terms hereof, whether such rate is higher
or lower than any rate previously quoted to Borrower) plus one and
one-half of one (1.50) percentage points.”

          (c) Effective as of June 1, 2006, the reference in Section 1.69(b) to “January 1, 2006” is
hereby amended to be a reference to “June 1, 2006”.

     2. Consent to Amendment of Affiliate Lease. Notwithstanding Section 9.12(a) of the
Loan Agreement, Administrative and Collateral Agent and Lenders hereby consent to the amending of
the Affiliate Lease pursuant to that certain Amended and Restated Master Lease Agreement, dated on
or about the date hereof, a copy of which is attached hereto as Exhibit A.

     3. Mortgage Loan Agreement. Reference is hereby made to that certain Loan and
Security Agreement dated on or about the date hereof, by and among German American Capital
Corporation and certain Subsidiaries of Parent (but excluding the Borrower) (the “Mortgage Loan
Agreement”). Administrative and Collateral Agent and Lenders hereby acknowledge that the
execution, delivery and performance of the Mortgage Loan Agreement will not constitute a Default or
an Event of Default under the Loan Agreement. Administrative and Collateral Agent and Lenders
hereby consent to Parent using the excess proceeds under the Mortgage Loan Agreement to make a
capital contribution or subordinated loan to the Borrower (the “Mortgage Proceeds
Investment”). Borrower may repay the Mortgage Proceeds Investment, whether in the form of a
repayment of Debt in the case of a loan from Parent or in the form of a dividend in the case of a
capital contribution from Parent, at any time so long as (a) Modified Adjusted Excess Availability
after giving effect to any such repayment is equal to or greater than $120,000,000; (b) both before
and after giving effect to any such repayment, Borrower’s Fixed Charge Coverage Ratio for the
immediately trailing twelve month period, on a consolidated basis, is equal to or greater than
1.1:1.0 (for purposes of this Section 3(b) only, Fixed Charge Coverage Ratio shall be calculated by
excluding the amount of any such repayment and by adjusting the interest component of the
calculation to include any interest payments which would have been made by the Borrower had the
amount of Mortgage Proceeds Investment which are being repaid never been loaned or invested in the
Borrower); (c) Borrower shall have provided Administrative and Collateral Agent with at least ten
(10) Business Days prior written notice of any such repayment; (d) no Default or Event of Default
shall have occurred and be continuing or would result from such repayment; and (e) prior to the
making of any such repayment, Administrative

2

 

and Collateral Agent shall have received Borrower’s unaudited internally prepared financial
statements for the month immediately preceding the date of such prepayment, accompanied by a
certificate of Borrower’s chief financial officer as to Borrower’s compliance with the terms of
this Section 3 together with such supporting documentation therefor as Administrative and
Collateral Agent may reasonably request. Administrative and Collateral Agent and Lenders hereby
acknowledge and agree that any repayment by Borrower of the Mortgage Proceeds Investment which is
permitted as set forth above: (1) shall not be applied to the $25,000,000 basket set forth in
Section 9.11(e)(i) of the Loan Agreement; and (2) for the purposes of the definition of “Permitted
Acquisitions” only, shall be excluded from the calculation of Fixed Charge Coverage Ratio.

     4. Effectiveness of this Amendment. Administrative and Collateral Agent must have
received the following items, in form and content acceptable to Administrative and Collateral
Agent, before this Amendment is effective.

          (a) Amendment. This Amendment fully executed in a sufficient number of counterparts
for distribution to all parties hereto.

          (b) Collateral Access Agreements. Collateral Access Agreements by all owners, lessors
and mortgagees of any premises owned by Parent or any Affiliates of Parent and leased to Borrower,
in form and substance reasonably satisfactory to Administrative and Collateral Agent.

          (c) Representations and Warranties. The representations and warranties set forth
herein and in the Loan Agreement must be true and correct.

          (d) No Default. No event has occurred and is continuing that constitutes an Event of
Default.

          (e) Other Required Documentation. All other documents and legal matters in connection
with the transactions contemplated by this Amendment shall have been delivered or executed or
recorded and shall be in form and substance reasonably satisfactory to Administrative and
Collateral Agent.

     5. Representations and Warranties. Borrower represents and warrants as follows:

          (a) Authority. Borrower has the requisite corporate power and authority to execute
and deliver this Amendment, and to perform its obligations hereunder and under the Financing
Agreements (as amended or modified hereby) to which it is a party. The execution, delivery and
performance by Borrower of this Amendment have been duly approved by all necessary corporate action
and no other corporate proceedings are necessary to consummate such transactions.

          (b) Enforceability. This Amendment has been duly executed and delivered by Borrower.
This Amendment and each Financing Agreement (as amended or modified hereby) is the legal, valid and
binding obligation of Borrower, enforceable against Borrower in accordance with its terms, and is
in full force and effect.

3

 

          (c) Representations and Warranties. The representations and warranties contained in
each Financing Agreement (other than any such representations or warranties that, by their terms,
are specifically made as of a date other than the date hereof) are correct on and as of the date
hereof as though made on and as of the date hereof.

          (d) Due Execution. The execution, delivery and performance of this Amendment are
within the power of Borrower, have been duly authorized by all necessary corporate action, have
received all necessary governmental approval, if any, and do not contravene any law or any
contractual restrictions binding on Borrower.

          (e) No Default. No event has occurred and is continuing that constitutes an Event of
Default.

     6. Choice of Law. The validity of this Amendment, its construction, interpretation
and enforcement, the rights of the parties hereunder, shall be determined under, governed by, and
construed in accordance with the internal laws of the State of New York governing contracts only to
be performed in that State.

     7. Counterparts. This Amendment may be executed in any number of counterparts and by
different parties and separate counterparts, each of which when so executed and delivered, shall be
deemed an original, and all of which, when taken together, shall constitute one and the same
instrument. Delivery of an executed counterpart of a signature page to this Amendment by
telefacsimile or a substantially similar electronic 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 a substantially similar electronic
transmission shall also deliver an original executed counterpart, but the failure to do so shall
not affect the validity, enforceability or binding effect of such agreement.

     8. Reference to and Effect on the Financing Agreements.

          (a) Upon and after the effectiveness of this Amendment, each reference in the Loan Agreement
to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Loan Agreement,
and each reference in the other Financing Agreements to “the Loan Agreement”, “thereof” or words of
like import referring to the Loan Agreement, shall mean and be a reference to the Loan Agreement as
modified and amended hereby.

          (b) Except as specifically amended above, the Loan Agreement and all other Financing
Agreements, are and shall continue to be in full force and effect and are hereby in all respects
ratified and confirmed and shall constitute the legal, valid, binding and enforceable obligations
of Borrower to Administrative and Collateral Agent, the Co-Lead Arrangers, the Co-Syndication
Agents, the Documentation Agents and the Lenders.

          (c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly
provided herein, operate as a waiver of any right, power or remedy of Administrative and Collateral
Agent, either Co-Lead Arranger, either Co-Syndication Agent, either Documentation Agent or any
Lender under any of the Financing Agreements, nor constitute a waiver of any provision of any of
the Financing Agreements.

4

 

          (d) To the extent that any terms and conditions in any of the Financing Agreements shall
contradict or be in conflict with any terms or conditions of the Loan Agreement, after giving
effect to this Amendment, such terms and conditions are hereby deemed modified or amended
accordingly to reflect the terms and conditions of the Loan Agreement as modified or amended
hereby.

     9. Ratification. Borrower hereby restates, ratifies and reaffirms each and every term
and condition set forth in the Loan Agreement, as amended hereby, and the Financing Agreements
effective as of the date hereof.

     10. Estoppel. To induce Administrative and Collateral Agent and Lenders to enter into
this Amendment and to continue to make advances to Borrower under the Loan Agreement, Borrower
hereby acknowledges and agrees that, as of the date hereof, there exists no right of offset,
defense, counterclaim or objection in favor of Borrower as against Administrative and Collateral
Agent, either Co-Lead Arranger, either Co-Syndication Agent, any Documentation Agent or any Lender
with respect to the Obligations.

     11. JURY TRIAL WAIVER. BORROWER, EACH AGENT AND EACH LENDER HEREBY WAIVE ANY RIGHT TO
TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (i) ARISING UNDER THIS AMENDMENT, THE
LOAN AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS OR (ii) IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AMENDMENT, THE LOAN
AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO IN
EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR
OTHERWISE. BORROWER, EACH AGENT AND EACH LENDER HEREBY AGREE AND CONSENT THAT ANY SUCH CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT ANY PARTY
HERETO MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AMENDMENT WITH ANY COURT AS WRITTEN
EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

     12. Integration. This Amendment, together with the other Financing Agreements,
incorporates all negotiations of the parties hereto with respect to the subject matter hereof and
is the final expression and agreement of the parties hereto with respect to the subject matter
hereof.

     13. Severability. In case any provision in this Amendment shall be invalid, illegal
or unenforceable, such provision shall be severable from the remainder of this Amendment and the
validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

[Remainder of Page Left Intentionally Blank]

5

 

     IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date first above
written.

	 	 	 	 	 
	BORROWER	 	 
	 
	 	 	 	 
	BLUELINX CORPORATION	 	 
	 
	 	 	 	 
	By:

	 	/s/ David J. Morris	 	 
	Name:

	 	 

David J. Morris
	 	 
	Title:

	 	 

CFO & Treasurer
	 	 
	 

	 	 

	 	 
	AGENTS	 	 
	 
	 	 	 	 
	WACHOVIA BANK, NATIONAL ASSOCIATION,	 	 
	as successor by merger to Congress Financial Corporation, as Administrative and
Collateral Agent, Co-Lead Arranger and Co-Syndication Agent	 	 
	 
	 	 	 	 
	By:

	 	/s/ James O’Connell	 	 
	Name:

	 	 

James O’Connell
	 	 
	Title:

	 	 

Vice President
	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Fourth Amendment to Loan Agreement

	 	 
	 	 

S-1

 

	 	 	 	 	 
	DOCUMENTATION AGENTS	 	 
	 
	 	 	 	 
	BANK OF AMERICA, N.A.,	 	 
	as a Documentation Agent	 	 
	 
	 	 	 	 
	By:

	 	/s/ Robert Scalzitti	 	 
	Name:

	 	 

Robert Scalzitti
	 	 
	Title:

	 	 

Vice President
	 	 
	 

	 	 

	 	 
	WELLS FARGO FOOTHILL, LLC,	 	 
	as a Documentation Agent	 	 
	 
	 	 	 	 
	By:

	 	/s/ David P. Hill	 	 
	Name:

	 	 

David P. Hill
	 	 
	Title:

	 	 

Vice President
	 	 
	 

	 	 

	 	 
	JPMORGAN CHASE BANK, N.A.	 	 
	(formerly known as JPMorgan Chase Bank),

as a Documentation Agent	 	 
	 
	 	 	 	 
	By:

	 	/s/ John M. Hariaczyi	 	 
	Name:

	 	 

John M. Hariaczyi
	 	 
	Title:

	 	 

Vice President
	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Fourth Amendment to Loan Agreement

	 	 
	 	 

S-2

 

	 	 	 	 	 
	LENDERS	 	 
	 
	 	 	 	 
	WACHOVIA BANK, NATIONAL ASSOCIATION,	 	 
	as successor by merger to Congress Financial Corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/ James O’Connell	 	 
	Name:

	 	 

James O’Connell
	 	 
	Title:

	 	 

Vice President
	 	 
	 

	 	 

	 	 
	BANK OF AMERICA, N.A.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Robert Scalzitti	 	 
	Name:

	 	 

Robert Scalzitti
	 	 
	Title:

	 	 

Vice President
	 	 
	 

	 	 

	 	 
	WELLS FARGO FOOTHILL, LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ David P. Hill	 	 
	Name:

	 	 

David P. Hill
	 	 
	Title:

	 	 

Vice President
	 	 
	 

	 	 

	 	 
	GENERAL ELECTRIC CAPITAL CORPORATION	 	 
	 
	 	 	 	 
	By:

	 	/s/ James R. Persico	 	 
	Name:

	 	 

James R. Persico
	 	 
	Title:

	 	 

Duly Authorized Signatory
	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Fourth Amendment to Loan Agreement

	 	 
	 	 

S-3

 

	 	 	 	 	 
	GMAC COMMERCIAL FINANCE LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ Robert J. Brandow	 	 
	Name:

	 	 

Robert J. Brandow
	 	 
	Title:

	 	 

Director
	 	 
	 

	 	 

	 	 
	ING CAPITAL LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ Bennett C. Whitehurst	 	 
	Name:

	 	 

Bennett C. Whitehurst
	 	 
	Title:

	 	 

Vice President
	 	 
	 

	 	 

	 	 
	THE CIT GROUP/BUSINESS CREDIT, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Evelyn Kusold	 	 
	Name:

	 	 

Evelyn Kusold
	 	 
	Title:

	 	 

Vice President
	 	 
	 

	 	 

	 	 
	JPMORGAN CHASE BANK, N.A.	 	 
	(formerly known as JPMorgan Chase Bank)	 	 
	 
	 	 	 	 
	By:

	 	/s/ John M. Hariaczyi	 	 
	Name:

	 	 

John M. Hariaczyi
	 	 
	Title:

	 	 

Vice President
	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Fourth Amendment to Loan Agreement

	 	 
	 	 

S-4

 

EXHIBIT A

See attached.

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