Document:

Exhibit 10.42

 

EXECUTION VERSION

 

CONSENT AND AMENDMENT

 

                This
CONSENT AND AMENDMENT (this “Consent”),
dated as of June 9, 2003, is entered into by and among, on the one hand, the
lenders identified on the signature pages hereof (such lenders, together with
their respective successors and assigns, are referred to hereinafter each
individually as a “Lender” and collectively as the “Lenders”), WELLS FARGO RETAIL FINANCE, LLC, a Delaware
limited liability company, as the arranger and administrative agent for the
Lenders (in such capacity, together with its successors, if any, in such
capacity, “Agent” and together with the Lenders, collectively, the “Lender
Group”), and, on the other hand, GUITAR
CENTER, INC., a Delaware corporation (“GCI”), GUITAR CENTER STORES, INC., a Delaware
corporation (“GCS”), and MUSICIAN’S
FRIEND, INC., a Delaware corporation (“MFI”; together with
GCI and GCS, are referred to hereinafter each individually as a “Borrower”,
and individually and collectively, jointly and severally, as the “Borrowers”),
with reference to the following:

 

W I T N E S S E T H

 

                WHEREAS, Borrowers and the Lender Group are
party to that certain Loan and Security Agreement, dated as of December 21,
2001 (as the same may be amended, restated, supplemented, or otherwise modified
from time to time, including hereby, the “Loan Agreement”), pursuant to
which the Lenders have made certain loans and financial accommodations to
Borrowers;

 

                WHEREAS, Borrowers have requested that the
Lender Group consent to (1) GCI’s issuance of unsecured convertible debentures
in the principal amount of up to $100,000,000 (the “Debentures”) upon
the terms and conditions set forth in the Indicative Term Sheet, a copy of
which is attached hereto as Exhibit A, and (2) the repayment (together with all
prepayment premiums) of the Senior Notes prior to their stated maturity date
(the “Prepayment”; together with the issuance of the Debentures, the “Transactions”);
and

 

                WHEREAS, subject to
the satisfaction of the conditions set forth herein, the Lender Group is
willing to consent to the Transactions.

 

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

 

1.             DEFINITIONS.  Capitalized terms used herein and not
otherwise defined herein shall have the meanings ascribed to them in the Loan
Agreement, as amended hereby.  As used
herein, “Fee Letter” means that certain Fee Letter of even date by and between
the Borrowers and the Agent.

 

 

2.             CONSENT.  Subject to the satisfaction of each of the
conditions listed in Section 5, the provisions of the Loan Agreement to
the contrary notwithstanding, including without limitation, Sections 7.1 and
7.8 of the Loan Agreement, the Lender Group hereby consents to the consummation
of the Transactions; provided  however, that the parties agree
that this Consent will be of no force or effect in the event that the
Debentures are not issued by June 20, 2003, and will terminate on June 20, 2003
in such event.  Notwithstanding anything
herein to the contrary, Section 5(d) of this Consent will survive if the
Consent is of no force and effect on June 20, 2003 or if the Consent terminates
for any reason.

 

3.             AMENDMENT TO LOAN AGREEMENT.

 

                (a)           Section 1.1 of the Loan Agreement is
hereby amended by adding the following definitions in alphabetical order
thereto:

 

““Debentures”
means those certain unsecured convertible debentures in the principal amount of
up to $100,000,000 due 2013 of GCI issued and outstanding pursuant to the
Indenture.”

 

““Indenture”
means the Indenture, to be dated on or about June 13, 2003, but not later than
June 20, 2003, between GCI, as issuer, and BNY Western Trust Company as
trustee, pursuant to which the Debentures were issued, as modified, amended, or
replaced from time to time in a manner permitted by this Agreement.”

 

““Indenture
Indebtedness” means the Debentures and any other Indebtedness of any
Obligor under the Indenture, together with any refinancings thereof permitted
by the terms of Section 7.8(c).”

 

““Qualified
Cash Equivalents” means the proceeds of the sale of the Debentures,
consisting of (a) marketable direct obligations issued by, or unconditionally
guaranteed by, the United States or issued by any agency thereof and backed by
the full faith and credit of the United States, in each case maturing within 1
year from the date of acquisition thereof, (b) marketable direct obligations
issued by any state of the United States or any political subdivision of any
such state or any public instrumentality thereof maturing within 1 year from
the date of acquisition thereof and, at the time of acquisition, having one of
the two highest ratings obtainable from either Standard & Poor’s Rating
Group (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”), (c) commercial
paper maturing no more than 270 days from the date of creation thereof and, at
the time of acquisition, having a rating of at least A-1 from S&P or at
least P-1 from Moody’s, (d) certificates of deposit or bankers’ acceptances
maturing within 1 year from the date of acquisition thereof issued by any bank
organized under the laws of the United States or any state thereof having at
the date of acquisition thereof combined capital and surplus of not less than
$250,000,000, (e) demand Deposit Accounts maintained with any bank organized
under the laws of the United States or any state thereof so long as the amount
maintained with any individual bank is less than or equal to $100,000 and is
insured by the Federal Deposit Insurance Corporation, and (f) Investments in
money market funds substantially all of whose assets are invested in the types
of assets described in clauses (a) through (e) above.”

 

 

““Redemption
Account” means that certain segregated account maintained at BNY Western
Trust Company for the purpose of redeeming the Senior Notes.”

 

“Statement
of Sources and Uses” means that certain statement of sources and uses
respecting the proceeds from the Debentures and attached as Exhibit C to that
certain Consent and Amendment dated as of June 9, 2003 between the Borrowers
and the Lender Group.”

 

                (b)           The Loan Agreement is hereby amended
by adding the following new Section 6.25 thereto:

 

“6.25       The Indenture Indebtedness.

 

(a)           On or before the date upon which the
Debentures are issued, GCI shall deliver the notices of redemption required by
and in accordance with Article III of the Senior Indenture, and shall provide
Agent copies of the same.”

 

(b)           On or before the earlier of July 22,
2003 and the date the Senior Notes are paid in full, GCI shall provide to the Agent
pro forma financial information along with balance sheets as of the date the
Senior Notes are paid, in form and substance reasonably satisfactory to the
Agent.

 

(c)           Borrowers shall deposit, retain and
hold Qualified Cash Equivalents up to the amount required to redeem the Senior
Notes in the Redemption Account and will utilize those funds solely to redeem
the Senior Notes as required under clause (d) of this Section 6.25.

 

(d)           Borrowers shall use the Qualified
Cash Equivalents to redeem the Senior Notes on or before July 22, 2003.

 

(e)           Borrowers agree to utilize the
proceeds of the Debentures solely in accordance with the Statement of Sources
and Uses.”

 

                (c)           The Loan Agreement is hereby amended
to add the following new Section 6.26 thereto:

 

                “6.26       Amendment to Schedule 7.1.  On or before July 31, 2003, the Borrowers
shall deliver to the Agent an amended Schedule 7.1 which includes the Indenture
Indebtedness and otherwise updates such Schedule 7.1 as of July 31,
2003.

 

                (d)           Section 7.1 of the Loan Agreement is
hereby amended by replacing subsection (l) in its entirety with the following:

 

“refinancings,
renewals, or extensions of Indebtedness permitted under clauses (b) through (j)
of this Section 7.1 (and continuance or renewal of any Permitted Liens associated
therewith) so long as: (i) the terms and conditions of such refinancings,
renewals, or extensions do not materially impair the prospects of repayment of
the 

 

 

 

Obligations by Borrowers,
(ii) the net cash proceeds of such refinancings, renewals, or extensions do not
result in an increase in the aggregate principal amount of the Indebtedness so
refinanced, renewed, or extended, (iii) such refinancings, renewals,
refundings, or extensions do not result in a shortening of the average weighted
maturity of the Indebtedness so refinanced, renewed, or extended, (iv) to the
extent that Indebtedness that is refinanced, renewed, or extended was
subordinated in right of payment to the Obligations, then the subordination
terms and conditions of the refinancing, renewal, or extension Indebtedness
must be at least as favorable to the Lender Group as those applicable to the
refinanced, renewed, or extended Indebtedness, and (v) if such refinancing,
renewal, refunding, or extension involves the Debentures, such refinancing,
renewal, refunding, or extension also complies with Section 7.8(c).”

 

                (e)           Section 7.8 of the Loan Agreement is
hereby amended by deleting subsection (a) in its entirety and replacing it with
the following subsection (a):

 

“(a)         Except in connection with a refinancing
permitted by Section 7.1(l) or as provided in subsection (c) or (d)
below, prepay, redeem, retire, defease, purchase, or otherwise acquire any
Indebtedness owing to any third Person, other than the Obligations and
Indebtedness owing to any Borrower in accordance with this Agreement,”

 

                (f)            Section 7.8 of the Loan Agreement is
hereby amended by deleting subsection (c) in its entirety and replacing it with
the following subsection (c):

 

“(c)          GCI shall not, and shall not permit
any Subsidiary to, amend, supplement, or modify the Debentures or the Indenture
or repay the principal of, or make any other payment in relation to, the
Debentures; provided, so long as no Event of Default has occurred and is
continuing or would result therefrom, the foregoing shall not prohibit (i) the
payment of regularly scheduled interest on the Debentures, (ii) the repayment
of the Debentures with the proceeds of any refinancing thereof (provided that
such refinancing Indebtedness complies with the requirements of Section
7.1(1) and is otherwise on terms substantially similar to the Debentures),
and (iii) modifications or amendments to the Debentures or the Indenture if the
effect thereof could not be expected to result in a Material Adverse Change and
otherwise do not involve the amendment or modification of provisions which
would increase interest rates, principal or interest payment amounts, total
principal amounts, or require payment of any such amounts at earlier times, or
similar terms and provisions, and”

 

4.             REPRESENTATIONS AND WARRANTIES.  Borrowers each hereby represents and
warrants to the Lender Group as follows:

 

                (a)           They have the requisite power and
authority to execute and deliver this Consent and to perform its obligations
hereunder and under the Loan Documents to which it is a party.  The execution, delivery, and performance by
it of this Consent and the performance by it of each Loan Document to which it
is a party (i) have been duly approved by all necessary action and no other
proceedings are necessary to consummate such transactions; and (ii) are not in
contravention of (A) any law, rule, or regulation, or any order, judgment,
decree, writ, injunction, or award of any arbitrator, court or governmental
authority binding on it, (B) the terms of its 

 

 

organizational documents, or (C) any
provision of any contract or undertaking to which it is a party or by which any
of its properties may be bound or affected;

 

                (b)           This Consent has been duly executed
and delivered by Borrowers.  This
Consent and each Loan Document to which Borrowers are a party is the legal,
valid and binding obligation of Borrowers, enforceable against such Borrowers
in accordance with its terms, and is in full force and effect except as such
validity and enforceability is limited by the laws of insolvency and
bankruptcy, laws affecting creditors’ rights and principles of equity
applicable hereto;

 

                (c)           No injunction, writ, restraining
order, or other order of any nature prohibiting, directly or indirectly, the
consummation of the transactions contemplated herein has been issued and
remains in force by any Governmental Authority against Borrowers, any Guarantor
or any member of the Lender Group;

 

                (d)           No Default or Event of Default has
occurred and is continuing on the date hereof or as of the date of the
effectiveness of this Consent; and

 

                (e)           The representations and warranties in
the Loan Agreement and the other Loan Documents are true and correct in all
material respects on and as of the date hereof, as though made on such date
(except to the extent that such representations and warranties relate solely to
an earlier date).

 

5.             CONDITIONS TO THIS CONSENT.  The satisfaction of each of the following
shall constitute conditions to the effectiveness of this Consent and each and every
provision hereof:

 

                (a)           The representations and warranties in
the Loan Agreement and the other Loan Documents shall be true and correct in
all respects on and as of the date hereof, as though made on such date (except
to the extent that such representations and warranties relate solely to an
earlier date);

 

                (b)           Agent shall have received the
reaffirmation and consent of each Guarantor, attached hereto as Exhibit B, duly
executed and delivered by an authorized official of such Guarantor;

 

                (c)           No Default or Event of Default shall
have occurred and be continuing on the date hereof or as of the date of the
effectiveness of this Consent;

 

                (d)           Borrowers shall have paid the fees
and expenses required under the Fee Letter;

 

                (e)           No injunction, writ, restraining
order, or other order of any nature prohibiting, directly or indirectly, the
consummation of the transactions contemplated herein shall have been issued and
remain in force by any Governmental Authority against Borrowers or the Lender
Group; and

 

                (f)            Agent shall have received a copy of
the Statement of Sources and Uses, attached hereto as Exhibit C.

 

 

6.             CONSTRUCTION.  This Consent shall be governed by and
construed in accordance with the laws of the State of California without giving
effect to its conflicts of laws principles (other than any provisions thereof
validating the choice of the laws of the State of California as the governing
law).

 

7.             ENTIRE AGREEMENT.  This Consent, and terms and provisions
hereof, constitute the entire agreement among the parties pertaining to the
subject matter hereof and supersedes any and all prior or contemporaneous
amendments relating to the subject matter hereof.  Except as expressly amended hereby, the Loan Agreement and other
Loan Documents shall remain unchanged and in full force and effect.  The agreements set forth herein are limited
to the specifics hereof, shall not apply with respect to any facts or
occurrences other than those on which the same are based, shall not excuse
future non-compliance with the Loan Agreement, and shall not operate as a
consent to any further or other matter, under the Loan Documents.  Without limiting the generality of the
foregoing, in no event shall any provision of this Consent be deemed to operate
as a consent to any matter which does not meet all of the criteria to
constitute a part of the Transactions. 
This Consent is a Loan Document. 
The failure of Borrowers to comply with any of the covenants or other
agreements set forth in this Consent shall constitute an immediate Event of
Default.

 

8.             COUNTERPARTS; TELEFACSIMILE
EXECUTION.  This
Consent may be executed in any number of counterparts, all of which taken
together shall constitute one and the same instrument and any of the parties
hereto may execute this Consent by signing any such counterpart.  Delivery of an executed counterpart of this
Consent by telefacsimile shall be equally as effective as delivery of an
original executed counterpart of this Consent. 
Any party delivering an executed counterpart of this Consent by telefacsimile
also shall deliver an original executed counterpart of this Consent, but the
failure to deliver an original executed counterpart shall not affect the
validity, enforceability, and binding effect of this Consent.

 

9.             AMENDMENTS.  This Consent cannot be altered, amended,
changed or modified in any respect or particular unless each such alteration,
amendment, change or modification shall have been agreed to by each of the
parties and reduced to writing in its entirety and signed and delivered by each
party.

 

10           MISCELLANEOUS.  The lender group hereby reserves all
remedies, powers, rights, and privileges that the lender group may have under
the Loan Agreement or the other Loan Documents, at law (including under the
code), in equity, or otherwise. 

 

 

 

                IN
WITNESS WHEREOF, the parties have caused this Consent to be executed and
delivered as of the date first written above.

 

	
   

  	
  GUITAR
  CENTER, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bruce Ross

  
	
   

  	
  Title:

  	
  Executive Vice President
  and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  GUITAR
  CENTER STORES, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Erick Mason

  
	
   

  	
  Title

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  MUSICIAN’S
  FRIEND, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bruce Ross

  
	
   

  	
  Title:

  	
  Executive Vice President
  and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [signature
  page continues]

  

 

 

	
   

  	
  WELLS
  FARGO RETAIL FINANCE, LLC,

  
	
   

  	
  a Delaware limited
  liability company, as Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel Durkin

  
	
   

  	
  Name: 

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [signature
  page continues]

  

 

 

	
   

  	
  FLEET
  RETAIL FINANCE INC,

  
	
   

  	
  a Delaware corporation,

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christine M. Scott

  
	
   

  	
  Name:

  	
  Christine M. Scott

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [signature
  page continues]

  

 

 

 

	
   

  	
  UNION
  BANK OF CALIFORNIA, N.A.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ T. Kevin Powells

  
	
   

  	
  Name:

  	
  T. Kevin Powells

  
	
   

  	
  Title:

  	
  Assistant Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [signature
  page continues]

  

 

 

	
   

  	
  CONGRESS
  FINANCIAL CORPORATION

  (WESTERN)

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gary Whitaker

  
	
   

  	
  Name: 

  	
  Gary Whitaker

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [signature
  page continues]

  

 

 

	
   

  	
  PNC BANK,
  NATIONAL ASSOCIATION

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lawrence Weinstein

  
	
   

  	
  Name:

  	
  Lawrence Weinstein

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [signature
  page continues]

  

 

 

	
   

  	
  LASALLE
  BUSINESS CREDIT, INC.

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bent Hammeleff

  
	
   

  	
  Name:

  	
  Bent Hammeleff

  
	
   

  	
  Title:

  	
  Vice PresidentExhibit

4.1

 

AUGUST 6, 2003

 

AMONG

 

EURAMAX INTERNATIONAL

LIMITED,

EURAMAX EUROPEAN HOLDINGS

LIMITED, and

EURAMAX EUROPEAN

HOLDINGS, B.V.,

AS ISSUERS

 

AMERIMAX U.K., INC.

(f/k/a AMERIMAX HOLDINGS, INC.),

EURAMAX INTERNATIONAL,

INC.,

EURAMAX INTERNATIONAL HOLDINGS

LIMITED (f/n/a BROOMCO (1922) LIMITED),

EURAMAX CONTINENTAL

LIMITED (f/n/a BROOMCO (1953) LIMITED), and

AMERIMAX FABRICATED

PRODUCTS, INC.,

AS GUARANTORS

 

–and–

 

JPMORGAN CHASE BANK

(f/k/a THE CHASE MANHATTAN BANK),

AS TRUSTEE

 

 

SECOND SUPPLEMENTAL

INDENTURE

 

in respect of

 

$135,000,000 11 1/4 %

SENIOR SUBORDINATED NOTES DUE 2006

 

 

 

 

SECOND SUPPLEMENTAL INDENTURE (the “Second

Supplemental Indenture”), dated as of August 6, 2003, by and among EURAMAX

INTERNATIONAL LIMITED, a private limited company organized under the laws of

England and Wales (“Euramax”), EURAMAX EUROPEAN HOLDINGS LIMITED, a private

limited company organized under the laws of England and Wales (“Euramax U.K.”),

EURAMAX EUROPEAN HOLDINGS, B.V. (“Euramax, B.V.” and, together with Euramax and

Euramax U.K., the “Issuers”), AMERIMAX U.K., INC., a Delaware corporation

(formerly known as AMERIMAX HOLDINGS, INC.), (“Amerimax”), EURAMAX

INTERNATIONAL, INC., a Delaware corporation (“Euramax U.S.”), EURAMAX

INTERNATIONAL HOLDINGS LIMITED (formerly known as BROOMCO (1922) LIMITED), a

company incorporated under the laws of England and Wales (“Newco U.K.”),

EURAMAX CONTINENTAL LIMITED (formerly known as BROOMCO (1953) LIMITED), a

company incorporated under the laws of England and Wales (“Newco U.K. II”),

AMERIMAX FABRICATED PRODUCTS, INC., a Delaware corporation (“AFP,” and together

with Amerimax, Euramax U.S., Newco U.K., and Newco U.K. II, the “Guarantors”),

and JPMORGAN CHASE BANK (formerly known as THE CHASE MANHATTAN BANK), as

Trustee (the “Trustee”), under the Indenture, dated as of September 25, 1996

(the “Indenture”) pursuant to which $135,000,000 11 1/4% Senior

Subordinated Notes due 2006 have been issued (the “Securities”).

 

WHEREAS, the Issuers and certain of the Guarantors

have heretofore executed and delivered to the Trustee an indenture dated as of

September 25, 1996 (as such indenture has been supplemented and amended to

date, the “Existing Indenture,” and the Existing Indenture, as it may from time

to time be supplemented or amended by one or more additional indentures

supplemental thereto entered into pursuant to the applicable provisions

thereof, being hereinafter called the “Indenture”), providing for the issuance

of the Securities;

 

WHEREAS, the Issuers and certain of the Guarantors

have heretofore executed and delivered to the Trustee a supplemental indenture

dated as of November 18, 1999;

 

WHEREAS, the Issuers and certain of the Guarantors

have heretofore executed and delivered to the Trustee an amended supplemental

indenture dated as of December 14, 1999;

 

WHEREAS, the Issuers and the Guarantors propose to

amend the Existing Indenture (the “Proposed Amendments”), which Proposed

Amendments must be approved with the written consent of the Holders of a

majority of the aggregate principal amount of the outstanding Securities;

 

WHEREAS, Euramax U.S. and Euramax have solicited the

consent of the Holders of the Securities pursuant to the Offer to Purchase and

Consent Solicitation Statement dated July 10, 2003, as amended, supplemented or

modified (the “Consent Solicitation Statement”), to the Proposed Amendments to

the Indenture upon the terms and subject to the conditions set forth therein;

 

WHEREAS, pursuant to Section 10.02 of the Indenture,

the Issuers and the Guarantors may amend or supplement the Indenture as

contemplated hereby provided that the Holders of at least a majority in

aggregate principal amount of Securities then outstanding have consented;

 

WHEREAS, the Issuers have received and delivered to

the Trustee the consent of the Holders of a majority in aggregate principal

amount of the Securities to the Proposed Amendments;

 

WHEREAS, the Trustee is in receipt of such written

consents;

 

 

WHEREAS, each Issuer and each Guarantor has been

authorized by a resolution of its respective board of directors to enter into

this Second Supplemental Indenture;

 

WHEREAS, all other acts and proceedings required by

law, by the Existing Indenture and by the certificate of incorporation and

by-laws of the Issuers and the Guarantors to make this Second Supplemental

Indenture a valid and binding agreement for the purposes expressed herein, in

accordance with its terms, have been duly done and performed;

 

WHEREAS, pursuant to Section 10.06, the Trustee is

authorized to execute and deliver this Second Supplemental Indenture;

 

WHEREAS, following the execution of this Second

Supplemental Indenture, the terms hereof will become operative (the “Operative

Date”) upon the acceptance for purchase by Euramax U.S. of Securities validly

tendered in the Offer to Purchase contemplated by the Consent Solicitation

Statement (the “Tender Offer Condition”); and

 

WHEREAS, the terms of this Second Supplemental

Indenture shall be null and void if the Tender Offer Condition does not occur.

 

NOW, THEREFORE, THIS SECOND SUPPLEMENTAL INDENTURE

WITNESSETH:

 

That, for and in consideration of the premises herein

contained and in order to effect the proposed amendments contained in the

Consent Solicitation Statement, pursuant to Sections 10.02 and 10.06 of the

Existing Indenture, the Issuers and the Guarantors agree with the Trustee as

follows:

 

ARTICLE ONE

AMENDMENT OF EXISTING INDENTURE

 

SECTION 1.01.  Amendment of Existing Indenture. Effective as of the

Operative Date, this Second Supplemental Indenture amends the Existing

Indenture as provided for herein. The Issuers and the Guarantors acknowledge

and agree that no amendment or waiver of the provisions described in Section

10.02 (1) though (10) of the Existing Indenture as requiring the consent of

each affected Holder has been made hereby. 

If the Operative Date does not occur on or prior to October 1, 2003,

then the terms of this Second Supplemental Indenture shall be null and void and

the Existing Indenture shall continue in full force and effect without any

modification hereby.  Euramax U.S. shall

give the Trustee prompt

notice of the Operative Date.

 

SECTION 1.02.  Amendment of Section 1.01. Pursuant to Section 10.02 of the

Existing Indenture, Section 1.01 of the Existing Indenture is hereby amended by

deleting in their entirety the definitions of “Acquired Indebtedness,” “Average Life,” “Capital Stock,” “Consolidated

Cash Flow Ratio,” “Consolidated Net Income,” “Disqualified Stock,” “Fabricated

Products Business,” “GAAP,” “Investment, “Management Investor,” “Permitted Investment,”

“Restricted Payment,” and “Tangible Assets” contained in the Existing

Indenture.

 

SECTION 1.03.  Amendment of

Section 1.02. Pursuant to Section 10.02 of the Existing Indenture,

Section 1.02 of the Existing Indenture is hereby amended and restated in its

entirety to read as follows:

 

2

 

SECTION 1.02. Other Definitions.

 

	

  Term

  	

   

  	

  Defined in

  Section

  
	

   

  	

   

  	

   

  
	

  ‘‘Additional Amounts’’

  	

   

  	

  4.19

  
	

  ‘‘Bankruptcy Law’’

  	

   

  	

  6.01

  
	

  ‘‘Change of Control’’

  	

   

  	

  4.14

  
	

  ‘‘Custodian’’

  	

   

  	

  6.01

  
	

  ‘‘Event of Default’’

  	

   

  	

  6.01

  
	

  ‘‘Guarantor Blockage Period’’

  	

   

  	

  12.02(a)

  
	

  ‘‘Guarantor Payment Blockage

  Notice’’

  	

   

  	

  12.02(a)

  
	

  ‘‘IAI Global Security’’

  	

   

  	

  2.01(a)

  
	

  ‘‘144A Global Security’’

  	

   

  	

  2.01(a)

  
	

  ‘‘Paying Agent’’ .

  	

   

  	

  2.03

  
	

  ‘‘Payment Blockage Notice’’

  	

   

  	

  8.02(a)

  
	

  ‘‘Payment Blockage Period’’

  	

   

  	

  8.02(a)

  
	

  ‘‘Regulation S Global

  Security’’

  	

   

  	

  2.01(a)

  
	

  ‘‘Registrar’’

  	

   

  	

  2.03

  
	

  ‘‘Required Filing Date’’

  	

   

  	

  4.12

  
	

  ‘‘Securities Act Legend’’

  	

   

  	

  2.06(f)

  
	

  ‘‘United States Government

  Obligation’’

  	

   

  	

  9.01

  

 

SECTION 1.04.  Amendment to

Section 4.03.  Pursuant to

Section 10.02 of the Existing Indenture, Section 4.03 of the Existing Indenture

is hereby amended and restated in its entirety to read as follows:

 

SECTION 4.03. 

[INTENTIONALLY OMITTED.]

 

SECTION 1.05.  Amendment to

Section 4.04.  Pursuant to

Section 10.02 of the Existing Indenture, Section 4.04 of the Existing Indenture

is hereby amended and restated in its entirety to read as follows:

 

SECTION 4.04. 

[INTENTIONALLY OMITTED.]

 

SECTION 1.06.  Amendment to

Section 4.06.  Pursuant to

Section 10.02 of the Existing Indenture, Section 4.06 of the Existing Indenture

is hereby amended and restated in its entirety to read as follows:

 

SECTION 4.06. 

[INTENTIONALLY OMITTED.]

 

SECTION 1.07.  Amendment to

Section 4.07.  Pursuant to

Section 10.02 of the Existing Indenture, Section 4.07 of the Existing Indenture

is hereby amended and restated in its entirety to read as follows:

 

SECTION 4.07. 

Corporate Existence. 

Subject to Article Five, the Company shall do or shall cause to be done

all things necessary to preserve and keep in full force and effect its

corporate existence and the corporate, partnership or other existence of each

of its Restricted Subsidiaries that is an Issuer in accordance with the

respective organizational documents of each such Restricted Subsidiary.

 

3

 

SECTION 1.08.  Amendment to

Section 4.08.  Pursuant to

Section 10.02 of the Existing Indenture, Section 4.08 of the Existing Indenture

is hereby amended and restated in its entirety to read as follows:

 

SECTION 4.08. 

[INTENTIONALLY OMITTED.]

 

SECTION 1.09.  Amendment to

Section 4.09.  Pursuant to

Section 10.02 of the Existing Indenture, Section 4.09 of the Existing Indenture

is hereby amended and restated in its entirety to read as follows:

 

SECTION 4.09. 

[INTENTIONALLY OMITTED.]

 

SECTION 1.10.  Amendment to

Section 4.10.   Pursuant to Section 10.02 of the Existing Indenture, Section 4.10

of the Existing Indenture is hereby amended and restated in its entirety to

read as follows:

 

SECTION 4.10. 

[INTENTIONALLY OMITTED.]

 

SECTION 1.11.  Amendment to

Section 4.13.   Pursuant to Section 10.02 of the Existing Indenture, Section 4.13

of the Existing Indenture is hereby amended and restated in its entirety to

read as follows:

 

SECTION 4.13.  [INTENTIONALLY OMITTED.]

 

SECTION 1.12.  Amendment to

Section 4.15.   Pursuant to Section 10.02 of the Existing Indenture, Section 4.15

of the Existing Indenture is hereby amended and restated in its entirety to

read as follows:

 

SECTION 4.15. 

[INTENTIONALLY OMITTED.]

 

SECTION 1.13.  Amendment to

Section 4.16.   Pursuant to Section 10.02 of the Existing Indenture, Section 4.16

of the Existing Indenture is hereby amended and restated in its entirety to

read as follows:

 

SECTION 4.16. 

[INTENTIONALLY OMITTED.]

 

SECTION 1.14.  Amendment to

Section 4.17.   Pursuant to Section 10.02 of the Existing Indenture, Section 4.17

of the Existing Indenture is hereby amended and restated in its entirety to

read as follows:

 

SECTION 4.17. 

[INTENTIONALLY OMITTED.]

 

SECTION 1.15.  Amendment to

Section 4.18.   Pursuant to Section 10.02 of the Existing Indenture, Section 4.18

of the Existing Indenture is hereby amended and restated in its entirety to

read as follows:

 

SECTION 4.18. 

[INTENTIONALLY OMITTED.]

 

4

 

SECTION 1.16.  Amendment to

Section 5.01.   Pursuant to Section 10.02 of the Existing Indenture, Section 5.01

of the Existing Indenture is hereby amended and restated in its entirety to

read as follows:

 

SECTION 5.01. 

Restriction on Mergers, Consolidations and Certain Sales of Assets.  The Company will not consolidate with or

merge into any Person, or sell, assign, lease, convey or otherwise dispose of

(or cause or permit any Restricted Subsidiary of the Company to consolidate

with or merge into any Person or sell, assign, lease, convey or otherwise

dispose of) all or substantially all of the Company’s assets (determined on a

consolidated basis for the Company and its Restricted Subsidiaries), whether as

an entirety or substantially an entirety in one transaction or a series of

related transactions, including by way of liquidation or dissolution, to any

Person unless, in each such case: (i) the entity formed by or surviving any

such consolidation or merger (if other than the Company or such Restricted

Subsidiary, as the case may be), or to which such sale, assignment, lease,

conveyance or other disposition shall have been made (the ‘‘Surviving

Entity’’), is a corporation organized and existing under the laws of the

jurisdiction of incorporation of the Company or Restricted Subsidiary or the

United States, any state thereof or the District of Columbia; (ii) (a) in the

event the consolidation or merger involved an Issuer or all or substantially

all of Company’s assets were sold, assigned, leased, conveyed or otherwise

disposed of the Surviving Entity assumes by supplemental indenture all of the

obligations of such Issuer or the Issuers, as the case may be, under Section

7.07 of this Indenture and under the indemnity provided for in the sixth

paragraph of Section 4.19 of this Indenture (the ‘‘Trustee Obligations’’) or

(b) in the event the consolidation or merger involved the Guarantor or all or

substantially all of the Company’s assets were sold, assigned, leased, conveyed

or otherwise disposed of, the Surviving Entity assumed by supplemental

indenture all of the obligations of the Guarantor with respect to the Trustee

Obligations; and (iii) the Company has delivered to the Trustee an Officers’

Certificate and an Opinion of Counsel, each stating that such consolidation or

merger or sale, assignment, lease, conveyance, or other disposition and such

supplemental indenture, complies with this Article Five and that all conditions

precedent herein provided for relating to such transaction have been complied

with. The provisions of this Section 5.01 shall not apply to any merger of a

Restricted Subsidiary of the Company with or into the Company or a Wholly Owned

Subsidiary of the Company or any transaction pursuant to which the Guarantee is

to be released in accordance with the terms of the Guarantee and this Indenture

in connection with any transaction complying with the provisions of Section

4.05. The provisions of this Section 5.01 shall not be applicable to any of the

events contemplated by the Reorganization.

 

SECTION 1.17.  Amendment to

Section 5.02.   Pursuant to Section 10.02 of the Existing Indenture, Section 5.02

of the Existing Indenture is hereby amended and restated in its entirety to

read as follows:

 

SECTION 5.02. 

Successor Corporation Substituted.  Upon any consolidation of the Company or any Restricted

Subsidiary of the Company with, or merger of the Company or such Restricted

Subsidiary into, any other Person or any sale, assignment, lease, conveyance or

other disposition of all or substantially all of the Company’s assets

(determined on a consolidated basis for the Company and its Restricted

Subsidiaries) (as an entirety or substantially as an entirety in one

transaction or a series of related transactions, including by way of liquidation

or dissolution) in accordance with Section 5.01, upon the execution of a

supplemental indenture by the Surviving Entity in form satisfactory to the

Trustee (as evidenced by the Trustee’s execution thereof), the Surviving Entity

shall succeed to, and be substituted for, and may exercise every right and

power of and shall assume all obligations of, the Company or such Restricted

Subsidiary, as the case may be, with respect to the Trustee Obligations under

this Indenture and

 

5

 

the Guarantee, as the case may be, with the same

effect as if such Surviving Entity had been named as the Company, Guarantor or

such Restricted Subsidiary, as the case may be, herein, and thereafter, except

in the case of a lease, the predecessor Person shall be relieved of all

obligations and covenants under this Indenture and the Guarantee, as the case

may be, with respect to the Trustee Obligations.

 

SECTION 1.18.  Amendment to

Section 6.01.   Pursuant to Section 10.02 of the Existing Indenture, Section 6.01

of the Existing Indenture is hereby amended and restated in its entirety to

read as follows:

 

SECTION 6.01. 

Events of Default.

 

An ‘‘Event of Default’’ occurs if:

 

(1) the Issuers fail to pay the principal of any

Security when the same becomes due and payable (whether or not such payment is

prohibited by Article Eight hereof or, with respect to a payment on behalf of

the Issuers by the Guarantor, Article Twelve);

 

(2) the Issuers fail to pay any interest on any

Security when the same becomes due and payable and the Default continues for a

period of 30 days (whether or not such payment is prohibited by Article Eight

hereof or, with respect to a payment on behalf of the Issuers by the Guarantor,

Article Twelve);

 

(3) the Issuers default in the payment of

principal of and interest on Securities required to be purchased pursuant to an

Offer to Purchase as described under Section 4.05 and Section 4.14 when due and

payable (whether or not such payment is prohibited by Article Eight hereof or,

with respect to a payment on behalf of the Issuers by the Guarantor, Article

Twelve);

 

(4) the Issuers fail to perform or comply with

any of the provisions of Section 5.01;

 

(5) [INTENTIONALLY OMMITTED];

 

(6) [INTENTIONALLY OMMITTED];

 

(7) [INTENTIONALLY OMMITTED];

 

(8) the Company or any Significant Subsidiary

pursuant to or within the meaning of any Bankruptcy Law:

 

(A) commences a voluntary case or proceeding,

 

(B) consents to the entry of an order for relief

against it in an involuntary case or proceeding,

 

(C) consents to the appointment of a Custodian of

it or for all or substantially all of its property, or

 

(D) makes a general assignment for the benefit of

its creditors; or

 

(9) a court of competent jurisdiction enters an

order or decree under any Bankruptcy Law that:

 

(A) is for relief against the Company or any

Significant Subsidiary in an involuntary case or proceeding,

 

6

 

(B) appoints a Custodian of the Company or any

Significant Subsidiary or for all or substantially all of its property, or

 

(C) orders the liquidation of the Company or any

Significant Subsidiary, and in each case the order or decree remains unstayed

and in effect for 60 days; provided, however, that if the entry of

such order or decree is appealed and dismissed on appeal then the Event of

Default hereunder by reason of the entry of such order or decree shall be

deemed to have been cured.

 

(10) [INTENTIONALLY OMMITTED].

 

The term ‘‘Custodian’’ means any receiver,

trustee, assignee, liquidator, sequestrator or similar official under any

Bankruptcy Law.

 

ARTICLE TWO

AMENDMENT OF EXISTING INDENTURE

 

SECTION 2.01.  Privileges and Immunities of Trustee. The Trustee accepts

the amendment of the Indenture effected by this Second Supplemental Indenture

but only upon the terms and conditions set forth in the Indenture, including

the terms and provisions defining and limiting the liabilities and

responsibilities of the Trustee, which terms and provisions shall in like

manner define and limit its liabilities and responsibilities in the performance

of the trust created by the Indenture as hereby amended. The Trustee shall not

be responsible for the adequacy or sufficiency of the Second Supplemental

Indenture, for the due execution thereof by the Issuers and the Guarantors or

for the recitals contained herein, which are the Issuers’ and the Guarantors’

responsibilities.

 

ARTICLE THREE

MISCELLANEOUS PROVISIONS

 

SECTION 3.01.  Instruments to be Read Together. This Second Supplemental

Indenture is an indenture supplemental to and in implementation of the Existing

Indenture, and said Existing Indenture and this Second Supplemental Indenture

shall henceforth be read together.

 

SECTION 3.02.  Confirmation. The Existing Indenture as amended and supplemented

by this Second Supplemental Indenture is in all respects confirmed and

preserved.

 

SECTION 3.03.  Terms Defined. Capitalized terms used herein without

definition shall have the meanings assigned to them in the Existing Indenture.

 

SECTION 3.04.  Counterparts. This Second Supplemental Indenture may be

signed in any number of counterparts each of which so executed shall be deemed

to be an original, but all such counterparts shall together constitute but one

and the same instrument.

 

SECTION 3.05.  Effect of Headings. The Section headings herein are for

convenience only and shall not affect the construction hereof.

 

SECTION 3.06.  Effectiveness. The provisions of this Second Supplemental

Indenture will take effect immediately upon execution thereof by the parties

hereto and will become operative on the

 

7

 

Operative Date of this Second Supplemental Indenture. If the Tender

Offer Condition does not occur, the terms of this Second Supplemental Indenture

shall be null and void.

 

SECTION 3.07.  Governing Law. The internal law of the State of New York

shall govern and be used to construe this Second Supplemental Indenture without

giving effect to applicable principles of conflicts of law to the extent that

the application of the laws of another jurisdiction would be required thereby.

This Second Supplemental Indenture is subject to the provisions of the Trust

Indenture Act that are required to be part of the Indenture and shall, to the

extent applicable, be governed by such provisions.

 

[remainder of the page

intentionally left blank]

 

8

 

IN WITNESS WHEREOF, the parties hereto have caused

this Second Supplemental Indenture to be duly executed as of the date first

above written.

 

 

	

   

  	

  EURAMAX INTERNATIONAL LIMITED

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   By:

  	

  /s/ Paul F. Williams

  	

   

  
	

   

  	

   

  	

  Name: Paul F. Williams

  	

   

  
	

   

  	

   

  	

  Title: Director/Secretary

  	

   

  
	

   

  	

   

  
	

   

  	

  EURAMAX EUROPEAN HOLDINGS LIMITED

  
	

   

  	

   

  
	

   

  	

   By:

  	

  /s/ Paul F. Williams

  	

   

  
	

   

  	

   

  	

  Name: Paul F. Williams

  	

   

  
	

   

  	

   

  	

  Title: Director/Secretary

  	

   

  
	

   

  	

   

  
	

   

  	

  EURAMAX EUROPEAN HOLDINGS, B.V.

  
	

   

  	

   

  
	

   

  	

   By:

  	

  /s/ S. Kirk Huddleston

  	

   

  
	

   

  	

   

  	

  Name: S. Kirk Huddleston

  	

   

  
	

   

  	

   

  	

  Title: Attorney in fact for Rob Dresen on behalf of

  Euramax European Holdings B.V., the sole director of Euramax International

  Holdings B.V.

  
	

   

  	

   

  
	

   

  	

  AMERIMAX U.K., INC.

  
	

   

  	

   

  
	

   

  	

   By:

  	

  /s/ Ian Pittendreigh

  	

   

  
	

   

  	

   

  	

  Name: Ian Pittendreigh

  	

   

  
	

   

  	

   

  	

  Title: Secretary/Director

  	

   

  
	

   

  	

   

  
	

   

  	

  EURAMAX INTERNATIONAL, INC.

  
	

   

  	

   

  
	

   

  	

   By:

  	

  /s/ R. Scott Vansant

  	

   

  
	

   

  	

   

  	

  Name: R. Scott Vansant

  	

   

  
	

   

  	

   

  	

  Title: Chief Financial Officer

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  EURAMAX INTERNATIONAL HOLDINGS

  LIMITED

  
	

   

  	

   

  
	

   

  	

   By:

  	

  /s/ Paul F. Williams

  	

   

  
	

   

  	

   

  	

  Name: Paul F. Williams

  	

   

  
	

   

  	

   

  	

  Title: Director/Secretary

  	

   

  
	

   

  	

   

  
	

   

  	

  EURAMAX CONTINENTAL LIMITED

  
	

   

  	

   

  
	

   

  	

   By:

  	

  /s/ Paul F. Williams

  	

   

  
	

   

  	

   

  	

  Name: Paul F. Williams

  	

   

  
	

   

  	

   

  	

  Title: Director/Secretary

  	

   

  

 

SIGNATURE PAGE TO THE

SECOND SUPPLEMENTAL INDENTURE

 

 

 

	

   

  	

   

  
	

   

  	

  AMERIMAX FABRICATED

  PRODUCTS INC.

  
	

   

  	

   

  
	

   

  	

   By:

  	

  /s/ R. Scott Vansant

  	

   

  
	

   

  	

   

  	

  Name: R. Scott Vansant

  	

   

  
	

   

  	

   

  	

  Title: Chief Financial Officer

  	

   

  
	

   

  	

   

  
	

   

  	

  JPMORGAN CHASE BANK, as Trustee

  
	

   

  	

   

  
	

   

  	

   By:

  	

  /s/ Natalia Moran

  	

   

  
	

   

  	

   

  	

  Name: Natalia Moran

  	

   

  
	

   

  	

   

  	

  Title: Vice President

  	

   

  

 

SIGNATURE PAGE TO THE

SECOND SUPPLEMENTAL INDENTURE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}]]