Document:

exv4w1

 

Exhibit 4.1

SECOND AMENDMENT TO SECURED SUPER-PRIORITY DEBTOR-IN-
POSSESSION REVOLVING CREDIT AND GUARANTY
AGREEMENT

          SECOND AMENDMENT TO SECURED SUPER-PRIORITY DEBTOR-IN-POSSESSION REVOLVING CREDIT AND
GUARANTY AGREEMENT, dated as of April 26, 2006 (this “Amendment”), to that certain Secured
Super-Priority Debtor-In-Possession Revolving Credit and Guaranty Agreement, dated as of February
11, 2005, as amended by that certain First Amendment to Secured Super-Priority Debtor-In-Possession
Revolving Credit and Guaranty Agreement, dated as of December 23, 2005 (as amended, supplemented,
or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used herein but
not otherwise defined herein shall have the meanings given such terms in the Credit Agreement),
among Kaiser Aluminum & Chemical Corporation, a Delaware corporation as a debtor and
debtor-in-possession in a case pending under Chapter 11 of the Bankruptcy Code (“Company”), Kaiser
Aluminum Corporation, a Delaware corporation and a debtor and debtor-in-possession in a case
pending under Chapter 11 of the Bankruptcy Code (“Parent”) and each of their respective
subsidiaries party thereto (the “Subsidiary Borrowers”, and together with Company and Parent, each
a “Borrower” and collectively, “Borrowers”), certain of the direct or indirect subsidiaries of
Borrowers party thereto (each a “Guarantor” and collectively, “Guarantors”), the Lenders party
thereto and JPMorgan Chase Bank, National Association, as administrative agent for the Lenders (in
such capacity, “Agent”).

W I T N E S S E T H:

          WHEREAS, Borrowers, Guarantors, the Lenders named therein and Agent have entered into the
Credit Agreement;

          WHEREAS, Borrowers have asked Lenders to extend the Maturity Date of the Credit Agreement (i)
initially, to May 17, 2006, and (ii) subsequently, to August 31, 2006; and

          WHEREAS, Lenders are willing to consent to both extensions of the Maturity Date of the Credit
Agreement and grant such amendment to the Credit Agreement on the terms and subject to the
conditions set forth herein;

          NOW, THEREFORE, in consideration of the premises and the agreements herein contained,
Borrowers, Guarantor, Lenders, and Agent hereby agree as follows:

ARTICLE I

AMENDMENTS TO CREDIT AGREEMENT

          Section 1.1 Immediately upon the occurrence of the First Effective Date (as defined in Article
II below), the definition of “Maturity Date” in Section 1.01 to the Credit Agreement shall be
amended and restated in its entirety as follows:

          “Maturity Date” shall mean May 17, 2006.

          Section 1.2 Immediately upon the occurrence of the Second Effective Date (as defined in
Article II below), the definition of “Maturity Date” in Section 1.01 to the Credit Agreement shall
be further amended and restated in its entirety as follows:

          “Maturity Date” shall mean August 31, 2006.

 

 

Second Amendment

ARTICLE II

CONDITIONS TO CLOSING

          Section 2.1 The first date on which each of the following conditions are satisfied shall be
the “First Effective Date”:

               (a) Second Amendment. Agent shall have received a duly executed counterpart of this
Amendment from each of the Borrowers, each of the Guarantors and each of the Lenders;

               (b) Second Amendment Fee Letter. Agent shall have received a duly executed
counterpart of that certain Second Amendment Fee Letter, dated the date hereof, among Agent, Parent
and Company;

               (c) Amendment No. 2 to Commitment Letter. Agent shall have received a duly executed
counterpart of that certain Amendment No. 2 to Commitment Letter, dated the date hereof, among
Agent, Parent, Company, J.P. Morgan Securities Inc. (“JPMSI”) and CIT Group/Business Credit, Inc.
(“CIT”);

               (d) Amendment No. 1 to Amended and Restated Fee Letter. Agent shall have received a
duly executed counterpart of that certain Amendment No. 1 to Amended and Restated Fee Letter, dated
the date hereof, among Agent, Parent, Company and JPMSI; and

               (e) Extension Stipulation. Agent shall have received a certified copy of a
stipulation executed by the Borrowers and Agent and approved by the Bankruptcy Court in
substantially the form of Exhibit A attached hereto (the “Extension Stipulation”), which
Extension Stipulation shall be in full force and effect and shall not have been vacated, stayed,
reversed, modified or amended in any respect.

          Section 2.2 The first date on which each of the conditions set forth in Section 2.1 and each
of the following additional conditions are satisfied shall be the “Second Effective Date”:

               (a) Amendment No. 3 to Commitment Letter. Agent shall have received a duly executed
counterpart of that certain Amendment No. 3 to Commitment Letter, dated the date hereof, among
Agent, Parent, Company, JPMSI and CIT;

               (b) Amendment No. 2 to Amended and Restated Fee Letter. Agent shall have received a
duly executed counterpart of that certain Amendment No. 2 to Amended and Restated Fee Letter, dated
the date hereof, among Agent, Parent, Company and JPMSI; and

               (c) Extension Order. Agent shall have received a certified copy of a final,
non-appealable order of the Bankruptcy Court approving this Amendment and the Amendment No. 2 to
Amended and Restated Fee Letter referenced in Section 2.2(b), in substantially a form acceptable to
the Agent in its sole discretion (the “Extension Order”), which Extension Order shall be in full
force and effect and shall not have been vacated, stayed, reversed, modified or amended in any
respect.

 

 

Second Amendment

ARTICLE III

MISCELLANEOUS

          Section 3.1 Effect of Amendment. Except as expressly set forth herein, this Amendment
shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect
the rights and remedies of Agent or any Lender under the Loan Documents, and shall not alter,
modify,
amend or in any way affect any of the terms, conditions, obligations, covenants or agreements
contained in the Loan Documents, all of which are ratified and affirmed in all respects and shall
continue in full force and effect except that, on and after the effectiveness of this Amendment,
each reference to the Credit Agreement in the Loan Documents shall mean and be a reference to the
Credit Agreement as amended by this Amendment. Nothing herein shall be deemed to entitle any
Borrower to a consent to, or a waiver, amendment, modification or other change of, any of the
terms, conditions, obligations, covenants or agreements contained in the Loan Documents in similar
or different circumstances. This Amendment is a Loan Document executed pursuant to the Credit
Agreement and shall be construed, administered and applied in accordance with the terms and
provisions thereof.

          Section 3.2 No Representations by Lenders or Agent. Borrowers hereby acknowledge that
they have not relied on any representation, written or oral, express or implied, by any Lender or
Agent, other than those expressly contained herein, in entering into this Amendment.

          Section 3.3 Representations of Borrowers and Guarantors. Each Borrower and Guarantor
represents and warrants to Agent and Lenders that, as of the date hereof, as of the First Effective
Date and as of the Second Effective Date: (a) (i) it is duly organized and validly existing under
the laws of the State of its organization and is duly qualified as a foreign organization and is in
good standing in each jurisdiction in which the failure to so qualify would reasonably be expected
to have a Material Adverse Effect, and (ii) subject to the entry by the Bankruptcy Court of the
Extension Stipulation or the Extension Order, as applicable, it has the requisite corporate power
and authority to effect the transactions contemplated hereby, and by the other Loan Documents to
which it is a party; (b) the execution, delivery and performance by it of this Amendment (i) is
within its organizational powers, has been duly authorized by all necessary organizational action,
and does not (A) contravene its charter or by-laws or other constituent documents, (B) violate any
law or regulation, or any order or decree of any court or Governmental Authority applicable to it,
(C) conflict with or result in a breach of, or constitute a default under, any material indenture,
mortgage or deed of trust entered into after the applicable Filing Date or any material lease,
agreement or other instrument entered into after the applicable Filing Date binding on it or any of
its properties, or (D) result in or require the creation or imposition of any Lien upon any of its
property other than the Liens granted pursuant to the Loan Documents, the Order, the Extension
Stipulation or the Extension Order; and (ii) does not require the consent, authorization by or
approval of or notice to or filing or registration with any Governmental Authority, other than the
entry of the Extension Stipulation or the Extension Order, as applicable; (c) this Amendment has
been duly executed and delivered by it; and (d) this Amendment is a legal, valid and binding
obligation of such Borrower or Guarantor, enforceable against it in accordance with its terms and
the Order. Each Borrower and Guarantor further represents and warrants to Agent and Lenders that,
as of the date hereof, as of the First Effective Date and as of the Second Effective Date, and
after giving effect to this Amendment, (a) the representations and warranties set forth in the Loan
Documents are true and correct in all material respects on and as of the date hereof, as of the
First Effective Date or as of the Second Effective Date, as applicable, with the same effect as
though made on such date, except to the extent that such representations and warranties expressly
relate to an earlier date, in which case such

 

 

Second Amendment

representations and warranties were true as of such
earlier date and (b) no Default or Event of Default has occurred and is continuing.

          Section 3.4 Successors and Assigns. This Amendment shall be binding upon the parties
hereto and their respective successors and assigns and shall inure to the benefit of the parties
hereto and the successors and assigns of Lenders and Agent.

          Section 3.5 Headings. Section headings used herein are for convenience only and are
not to affect the construction of or be taken into consideration in interpreting this Amendment.

          Section 3.6 Severability. Any provision of this Amendment which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

          Section 3.7 Counterparts. This Amendment may be executed in any number of
counterparts, each of which shall constitute an original, but all of which taken together shall
constitute one and the same instrument. Delivery of an executed counterpart of a signature page to
this Amendment by facsimile shall be effective as delivery of a manually executed counterpart of
this Amendment.

          Section 3.8 Governing Law. THIS AMENDMENT SHALL IN ALL RESPECTS BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION,
SECTION 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND (TO THE EXTENT APPLICABLE)
THE BANKRUPTCY CODE.

          Section 3.9 Costs and Expenses. Whether or not the transactions hereby contemplated
shall be consummated, Borrowers shall pay all reasonable out-of-pocket expenses (including, without
limitation, expenses incurred in connection with due diligence) of Agent associated with this
Amendment, including the reasonable out-of-pocket fees and expenses of Agent’s counsel.

          Section 3.10 Ratification of Guaranties. Each Guarantor hereby consents to this
Amendment and hereby confirms and agrees that notwithstanding the effectiveness of this Amendment,
the guarantee made by such Guarantor pursuant to Section 9 of the Credit Agreement is, and shall
continue to be, in full force and effect and is hereby ratified and confirmed in all respects,
except that, on and after the effectiveness of this Amendment, each reference to the Credit
Agreement shall mean and be a reference to the Credit Agreement as amended by this Amendment.

[Remainder of this page is intentionally left blank.]

 

 

Second Amendment

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

	 	 	 	 	 	 	 	 	 
	 	 	BORROWERS:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KAISER ALUMINUM CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KAISER ALUMINUM & CHEMICAL CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KAISER ALUMINIUM INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KAISER BELLWOOD CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GUARANTORS:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KAISER ALUMINUM & CHEMICAL INVESTMENT, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KAISER ALUMINUM PROPERTIES, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 

 

 

Second Amendment

	 	 	 	 	 	 	 	 	 
	 	 	KAISER ALUMINUM TECHNICAL	 	 
	 	 	 	SERVICES, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ALWIS LEASING, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KAISER CENTER, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KAISER CENTER PROPERTIES	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	OXNARD FORGE DIE COMPANY, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	AKRON HOLDING CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KAISER TEXAS MICROMILL HOLDINGS, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 

 

 

Second Amendment

	 	 	 	 	 	 	 	 	 
	 	 	KAISER MICROMILL HOLDINGS, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KAISER SIERRA MICROMILLS, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KAISER TEXAS SIERRA MICROMILLS, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KAE TRADING, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KAISER EXPORT COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 

 

 

Second Amendment

	 	 	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,	 	 
	 	 	Individually and as Agent and Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Devin Mock	 	 
	 

	 	 	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	1717 Main Street, LL1	 	 
	 	 	Dallas, TX 75201	 	 

 

 

Second Amendment

	 	 	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE CIT GROUP/BUSINESS CREDIT, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

 

 

Second Amendment

	 	 	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH CAPITAL,
A DIVISION OF MERRILL LYNCH BUSINESS FINANCIAL SERVICES INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

 

 

Second Amendment

	 	 	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NA	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

 

 

Second Amendment

	 	 	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

 

 

Second Amendment

	 	 	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	WELLS FARGO FOOTHILL, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

 

 

Second Amendment

	 	 	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	UBS AG, STAMFORD BRANCH	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

 

 

Second Amendment

	 	 	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GMAC COMMERCIAL FINANCE LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

 

 

Second Amendment

EXHIBIT A

Extension Stipulation

(attached hereto)exv4w2

 

Exhibit 4.2

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION

131 South Dearborn

Chicago, Illinois 60670

J.P. MORGAN SECURITIES INC.

131 South Dearborn

Chicago, Illinois 60670

THE CIT GROUP/BUSINESS CREDIT, INC.

1211 Avenue of the Americas

New York, New York 10036

April 26, 2006

Kaiser Aluminum Corporation and

Kaiser Aluminum & Chemical Corporation

Exit Credit Facility

Amendment No. 2 to Commitment Letter

Kaiser Aluminum Corporation

Kaiser Aluminum & Chemical Corporation

27422 Portola Parkway, Ste. 350

Foothill Ranch, CA 92610-2831

Attention: Chief Financial Officer

			
	RE:	 	Commitment Letter, dated January 14, 2005 (the “Original Commitment Letter”),
as amended by that certain Amendment No. 1 to Commitment Letter, dated January 10, 2005
(the “Amendment No. 1 to Commitment Letter”, and the Original Commitment Letter as
amended by the Amendment No. 1 to Commitment Letter, the “Commitment Letter”), among
Kaiser Aluminum Corporation, a Delaware corporation (“Parent”), Kaiser Aluminum &
Chemical Corporation, a Delaware corporation (“Company”), JPMorgan Chase Bank, National
Association (“JPMorgan”), J.P. Morgan Securities Inc. (“JPMSI”) and CIT Group/Business
Credit, Inc. (“CIT”)

Ladies and Gentlemen:

          Reference is made to the Commitment Letter, pursuant to which JPMSI and CIT agreed to
structure and arrange and JPSMI agreed to syndicate (i) a super-priority secured
debtor-in-possession revolving credit and letter of credit facility in an aggregate amount of up to
$200,000,000 (the “DIP Revolving Commitment”) to the Borrowers as debtors and debtors-in-possession
in the currently pending Chapter 11 case of the Borrowers (the “DIP Credit Facility”) and (ii) a
senior secured revolving credit and letter of credit facility in an aggregate amount of up to
$200,000,000 (the “Revolving Credit Facility”) and a $50,000,000 term loan facility (the “Term Loan
Facility” and together with the Revolving Credit Facility, the “Exit Credit Facilities” and the
Exit Credit Facilities, with the DIP Credit Facility, each a “Facility” and together, the
“Facilities”) to be provided to the Borrowers upon the consummation of a plan of reorganization.
Pursuant to the Commitment Letter, JPMorgan and CIT (together, the “Primary Lenders”) also agreed
to provide an equal share of the entire principal amount of each Facility and JPMorgan agreed to
serve as Administrative Agent for each Facility. Capitalized terms

 

 

used herein but not otherwise defined shall have the respective
meanings assigned to such terms in the Commitment Letter.

          The DIP Facility closed on February 11, 2005. Pursuant to the Amendment No. 1 to Commitment
Letter and the Amended and Restated Fee Letter, dated January 10, 2005 (the “Amended and Restated
Fee Letter”), we agreed, among other things, to extend the commitments with respect to the Exit
Facilities through May 11, 2006. You have requested that we amend the Commitment Letter to further
extend the commitments with respect to the Exit Facilities through May 17, 2006. We are willing to
consent to the amendment of the Commitment Letter and to the extension of the commitments with
respect to the Exit Facilities and grant such amendment to the Commitment Letter on the terms and
subject to the conditions set forth herein and in the Amended and Restated Fee Letter, as amended
by that certain Amendment No. 1 to Amended and Restated Fee Letter, dated the date hereof (as
amended, the “Fee Letter”). Therefore, in consideration of the premises and the agreements herein
contained, we each hereby agree as follows:

          Immediately upon the occurrence of the Effective Date (as defined below), the fifth sentence
of the fifteenth paragraph of the Commitment Letter shall be amended and restated in its entirety
as follow:

Once effective, the Primary Lenders’ commitments and the Lead Arranger’s and
Co-Arranger’s agreements with respect to the Term Loan Facility in accordance with
the terms of this Commitment Letter shall cease if the Term Loan Facility is not
funded for any reason on or before the earliest of (a) the date that is thirty (30)
days after the date of the substantial consummation (as defined in Section 1101 of
the Bankruptcy Code) of a plan of reorganization of the Borrowers, (b) the date that
the Borrowers close an Alternative Financing (as defined in the Fee Letter) and (c)
May 17, 2006, and the Primary Lenders’ commitments and the Lead Arranger’s and
Co-Arranger’s agreements with respect to the Revolving Credit Facility in accordance
with the terms of this Commitment Letter shall cease if the Closing Date of the
Revolving Credit Facility does not occur on or before May 17, 2006; provided,
however, any termination of the commitments with respect to the Term Loan
Facility shall not affect the Primary Lenders’ commitments and the Lead Arranger’s
and Co-Arranger’s agreements with respect to the Revolving Credit Facility.

          
   It is acknowledged that the terms and conditions of the Revolving Credit Facility and the Term
Loan Facility have been negotiated and are substantially final as of the date hereof. Further, the
following specific terms of the Exit Credit Facilities will not be subject to change and are agreed
to be as follows, notwithstanding anything to the contrary contained in Exhibit B to the Commitment
Letter:

	 	1.	 	The “Applicable Margin” in the Revolving Credit Facility will be:

2

 

	 	 	 	 	 	 	 	 	 
	 	 	Revolver	 	Revolver
	Availability	 	ABR Spread	 	Eurodollar Spread
	Category 1
3 125,000,000
	 	 	0.00	%	 	 	1.50	%
	Category 2
< 125,000,000 and
3 75,000,000
	 	 	0.00	%	 	 	1.75	%
	Category 3
< 75,000
	 	 	0.25	%	 	 	2.00	%

	 	2.	 	The Applicable Commitment Fee Rate in the Revolving Credit Facility will be 0.20%
per annum.
	 
	 	3.	 	The amount of the Term Loan Facility will be $50,000,000.
	 
	 	4.	 	The “Applicable Margin” in the Term Loan Facility will be (a) 2.50%, in the
case of ABR Loans and (b) 4.25%, in the case of Eurodollar Loans.
	 
	 	5.	 	The Term Loan Facility will have a 1% call premium if the term loan is repaid
in the first year after closing.
	 
	 	6.	 	Subject to evidence reasonably satisfactory to JPMorgan that substantially all
of the assets of and related to the ongoing operations (but excluding assets of and
related to discontinued operations) of Kaiser Aluminum & Chemical Corporation located
in the United States will be transferred to Kaiser Aluminum Fabricated Products, LLC,
the Borrower in the Term Loan Facility will be Kaiser Aluminum Fabricated Products,
LLC, and the Guarantors in the Term Loan Facility shall be Kaiser Aluminum Corporation,
Kaiser Aluminum Investment Corporation, and Kaiser Aluminium International, Inc.
	 
	 	7.	 	The Borrowers in the Revolving Credit Facility will be Kaiser Aluminum
Corporation, Kaiser Aluminum Investment Corporation, Kaiser Aluminum Fabricated
Products, LLC and Kaiser Aluminium International, Inc.

          Except as expressly set forth herein, this Amendment No. 2 to Commitment Letter shall not by
implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and
remedies of any party under the Commitment Letter, and shall not alter, modify, amend or in any way
affect any of the terms, conditions, obligations, covenants or agreements contained in the
Commitment Letter, all of which are ratified and affirmed in all respects and shall continue in
full force and effect.

          This Amendment No. 2 to Commitment Letter is intended to be solely for the benefit of the
parties hereto and is not intended to confer any benefits upon, or create any rights in favor of,
any person other than the parties hereto. This Amendment No. 2 to Commitment Letter may not be
amended or waived except by an instrument in writing signed by you, JPMorgan, JPMSI and CIT. This
Amendment No. 2 to Commitment Letter may be executed in any number of counterparts, each of which
shall be an original, and all of which, when taken together, shall constitute one agreement.
Delivery of an executed signature page of this Amendment No. 2 to Commitment Letter by facsimile
transmission shall be effective as delivery of a manually executed counterpart hereof.

3

 

          This Amendment No. 2 to Commitment Letter shall be governed by, and construed in accordance
with, the law of the State of New York. The Borrowers consent to the nonexclusive jurisdiction and
venue of the state or federal courts located in the City of New York. Each party hereto
irrevocably waives, to the fullest extent permitted by applicable law, (a) any right it may have to
a trial by jury in any legal proceeding arising out of or relating to this Amendment No. 2 to
Commitment Letter, the Commitment Letter as amended by this Amendment No. 2 to Commitment Letter or
the transactions contemplated hereby or thereby (whether based on contract, tort or any other
theory) and (b) any objection that it may now or hereafter have to the laying of venue of any such
legal proceeding in the state or federal courts located in the City of New York.

          This Amendment No. 2 to Commitment Letter is delivered to you on the understanding that
neither this Amendment No. 2 to Commitment Letter nor the Commitment Letter nor any of their terms
or substance shall be disclosed, directly or indirectly, to any other person except (a) you may
disclose the Commitment Letter this Amendment No. 2 to Commitment Letter and their terms and substance to your
officers, directors, agents and advisors who are directly involved in the consideration of this
matter, (b) you may disclose the Commitment Letter and this Amendment No. 2 to Commitment Letter
and their terms and substance to any statutory creditors committee and the representative of the
future asbestos claimants in connection with the Borrowers’ Chapter 11 case and any professional
advisors of such committee or representative; provided that, the members of such committee
and such representative and their respective professional advisors agree to keep the Commitment
Letter this Amendment No. 2 to Commitment Letter and any of the terms or substance thereof strictly
confidential in accordance with the terms of this paragraph, or (c) as may be compelled in a
judicial or administrative proceeding or as otherwise required by law (in which case you agree to
inform us promptly thereof). Notwithstanding the foregoing, after this Amendment No. 2 to
Commitment Letter has been accepted by you, you may disclose this Amendment No. 2 to Commitment
Letter (but not the Fee Letter) with the Bankruptcy Court, as may be required to obtain court
approval in connection with any acts or obligations to be taken pursuant to this Amendment No. 2 to
Commitment Letter or the transactions contemplated hereby (in which case you agree to inform us
promptly thereof), it being understood that any pleadings or filings with respect to the Commitment
Letter and this Amendment No. 2 to Commitment Letter shall be acceptable to JPMorgan, JPMSI and
CIT.

          Immediately upon the satisfaction of each of the conditions contained in Section 2.1 of that
certain Second Amendment to Secured Super-Priority Debtor-In-Possession Revolving Credit and
Guaranty Agreement dated as of the date hereof among Parent, Company, the other Borrowers party
thereto, the Guarantors party thereto, the Lenders party thereto and JPMorgan as Agent for the
Lenders, this Amendment No. 2 to Commitment Letter shall become effective (the date on which such
conditions are satisfied being the “Effective Date”).

[ remainder of page intentionally left blank ]

4

 

          If the foregoing correctly sets forth our agreement, please indicate your acceptance of the
terms hereof by signing in the appropriate space below and returning to us the executed duplicate
of this letter agreement.

	 	 	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	J.P. MORGAN SECURITIES INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	THE CIT GROUP/BUSINESS CREDIT, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	Accepted and agreed to as of
the date first written above by:	 	 
	 
	 	 	 	 	 	 
	KAISER ALUMINUM CORPORATION	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	KAISER ALUMINUM & CHEMICAL CORPORATION	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Daniel J. Rinkenberger	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]