Document:

Exhibit 10.2

 

AMENDMENT NO. 2 AND WAIVER
TO

LOAN AND SECURITY AGREEMENT

 

THIS AMENDMENT NO. 2 AND WAIVER TO LOAN AND SECURITY
AGREEMENT, dated as of July 22, 2010 (this “Amendment No. 2”),
is by and among Wells Fargo Bank, National Association (as successor by merger
to Wachovia Bank, National Association), in its capacity as agent for the
Lenders (as hereinafter defined) pursuant to the Loan Agreement defined below
(in such capacity, “Agent”), the parties to the Loan Agreement as
lenders (individually, each a “Lender” and collectively, “Lenders”),
Scranton Products, Inc., a Delaware corporation (“Scranton”), AZEK
Building Products, Inc., a Delaware corporation (“AZEK”), Procell
Decking Inc., a Delaware corporation (“Procell”, and together with
Scranton and AZEK, each individually a “Borrower” and collectively, “Borrowers”),
CPG International Inc., a Delaware corporation (“Parent”), CPG
International I Inc., a Delaware corporation (“CPG I”), Santana Products
Inc., a Delaware corporation (“Santana”), CPG Sub I Corporation, a
Delaware Corporation (“Sub I”), Vycom Corp., a Delaware corporation (“Vycom”)
and Sanatec Sub I Corporation, a Delaware corporation (“Sanatec”, and
together with Parent, CPG I, Santana, Sub I, Vycom, each individually a “Guarantor”
and collectively “Guarantors”).

 

W  I  T
N  E  S  S  E  T  H :

 

WHEREAS, Agent, Lenders, Borrowers and Guarantors
have entered into financing arrangements pursuant to which Lenders (or Agents
on behalf of Lenders) may make loans and advances and provide other financial
accommodations to Borrowers as set forth in the Loan and Security Agreement,
dated February 13, 2008, and as amended by Amendment No. 1, dated February 29,
2008 by and among Agent, Lenders, Borrowers and Guarantors (as the same now
exists or may hereafter be amended, modified, supplemented, extended, renewed,
restated or replaced, the “Loan Agreement”) and other agreements,
documents and instruments referred to therein or at any time executed or
delivered in connection therewith or related thereto, including, without
limitation, this Amendment No. 2 (all of the foregoing, including the Loan
Agreement, as the same now exist or may hereafter be amended, modified,
supplemented, extended, renewed, restated or replaced, being collectively
referred to herein as the “Financing Agreements”);

 

WHEREAS, Borrowers have requested that Agent and
Lenders agree to make certain amendments to the Loan Agreement, and Agents and
Lenders are willing to make such amendments, subject to the terms and
conditions set forth herein; and

 

WHEREAS, by this Amendment No. 2, Agent,
Lenders, Borrowers and Guarantors intend to evidence such amendments;

 

NOW, THEREFORE, in consideration of the foregoing
and the mutual agreements and covenants contained herein, the parties hereto
agree as follows:

 

1.                         Definitions.

 

(a)                                                Additional Definition.  As
used herein or in the Financing Agreements, the term “Amendment No. 2”
shall mean Amendment No. 2 to Loan Agreement, dated as of July 22,
2010 by and among Borrowers, Guarantors, Agent and Lenders, and the Loan
Agreement and the other Financing Agreements shall be deemed and are hereby
amended to include, in addition and not in limitation, such definition.

 

(b)                                               Interpretation.  For
purposes of this Amendment No. 2, all terms used herein which are not
otherwise defined herein, including but not limited to, those terms used in the
recitals hereto, shall 

 

 

have
the respective meanings assigned thereto in the Loan Agreement as amended by
this Amendment No. 2.

 

2.                         Amendments.

 

(a)                                                Perfection of Security Interest.  Section 5.3(d) is
hereby amended by inserting the following at the end thereof:  “or as to the deposit accounts listed in item
3.(b)(ii) of the Supplemental Information Certificate attached to the
Amendment No. 2;  provided, that,
the aggregate balance in all such deposit accounts does not at any time exceed
$500,000.”

 

3.                         Waiver.

 

(a)                                                Subject to the terms and conditions set forth
herein, Agents and Lenders hereby waive the Events of Default under Section 12.1(a)(iii) of
the Loan Agreement arising as a result of the failure of Borrowers to provide
to Agents a Deposit Account Control Agreement in accordance with Section 6.6(a) of
the Loan Agreement in respect of the deposit accounts identified in the
Supplemental Information Certificate (as hereinafter defined).

 

(b)                                               Agents and Lenders have not waived, are not
hereby waiving, and have no intention of waiving any Event of Default which may
have occurred on or prior to the date hereof, whether or not continuing on the
date hereof, or which may occur after the date hereof (whether the same or
similar to the Event of Default referred to above or otherwise), other than the
Event of Default specifically referred to above.  The foregoing waiver shall not be construed
as a bar to or a waiver of any other or further Event of Default on any future
occasion, whether similar in kind or otherwise and shall not constitute a
waiver, express or implied, of any of the rights and remedies of Agents or
Lenders arising under the terms of the Loan Agreement or any other Financing
Agreements on any future occasion or otherwise.

 

4.                         Representations, Warranties and Covenants.  Each Borrower and Guarantor, jointly and
severally, represents and warrants to Agents and Lenders as follows, which
representations and warranties are continuing and shall survive the execution
and delivery hereof, the truth and accuracy which are a continuing condition of
the making or providing of any Loans to Borrowers:

 

(a)                                                this Amendment No. 2 has been duly
authorized, executed and delivered by all necessary action of each Borrower and
Guarantor, and is in full force and effect, and the agreements and obligations
of each Borrower and Guarantor contained herein constitute legal, valid and
binding obligations of Borrowers and Guarantors enforceable against Borrowers
and Guarantors in accordance with their respective terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar law limiting creditors’ rights generally and by general
equitable principles;

 

(b)                                               no action of, or filing with, or consent of
any Governmental Authority, and no approval or consent of any other Person, is
or will be required to authorize, or is or will be otherwise required in
connection with, the execution, delivery and performance by any Borrower or
Guarantor of this Amendment No. 2;

 

(c)                                                on the date hereof and after giving effect
hereto, no Default or Event of Default exists or has occurred and is
continuing; and

 

(d)                                               the representations and warranties contained
in Section 8 of the Loan Agreement are true and correct in all material
respects on and as of the date hereof (except to the extent stated to relate to
an earlier date) and after giving effect hereto and to the Supplemental
Information Certificate attached as Annex hereto (the “Supplemental
Information Certificate”).

 

 

5.                         Conditions Precedent.  This Amendment No. 2 and the amendments
contained herein shall only be effective upon the satisfaction of each of the
following conditions precedent in a manner satisfactory to Agent:

 

(a)                                                Agent shall have received counterparts of this
Amendment No. 2, duly authorized, executed and delivered by Borrowers,
Guarantors, Agent and Lenders;

 

(b)                                               no Default or Event of Default shall exist or
have occurred and be continuing after giving effect hereto; and

 

(c)                                                the Agent shall have received a fully executed
copy of the Amendment No. 1 to the Term Loan and Security Agreement, dated
February 28, 2008, by and among CPG I, Scranton, AZEK and Procell, as
borrowers, Parent, Santana, Sub I, Vycom, and Sanatec, as guarantors, the
parties hereto from time to time as lenders, and the Agent as the agent, in
form and substance satisfactory to the Agent.

 

6.                         General.

 

(a)                                                Effect of this Amendment. 
Except as expressly provided herein, no other changes or modifications
to the Financing Agreements are intended or implied, and in all other respects
the Financing Agreements are hereby specifically ratified, restated and
confirmed by all parties hereto as of the date hereof.  To the extent any conflict exists between the
terms of this Amendment No. 2 and the other Financing Agreements, the
terms of this Amendment No. 2 shall control.

 

(b)                                               Supplemental Information Certificate.  The
disclosures in the Supplemental Information Certificate shall be deemed to have
been provided at such time as was required under the Financing Agreements.

 

(c)                                                Governing Law.  The
validity, interpretation and enforcement of this Amendment No. 2 and any
dispute arising out of the relationship between the parties hereto, whether in
contract, tort, equity or otherwise, shall be governed by the internal laws of
the State of New York but excluding any principles of conflicts of law or other
rule of law that would cause the application of the law of any
jurisdiction other than the laws of the State of New York.

 

(d)                                               Jury Trial Waiver. 
BORROWERS, GUARANTORS, AGENT AND LENDERS HEREBY WAIVE ANY RIGHT TO TRIAL
BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS
AMENDMENT NO. 2 OR ANY OF THE OTHER FINANCING AGREEMENTS OR IN ANY WAY
CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO
IN RESPECT OF THIS AMENDMENT NO. 2 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.  BORROWERS, GUARANTORS, AGENT AND LENDERS
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 BORROWER, ANY GUARANTOR,
THE AGENT OR ANY LENDER MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF
THIS AMENDMENT NO. 2 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

(e)                                                Binding Effect.  This
Amendment No. 2 shall be binding upon and inure to the benefit of each of
the parties hereto and their respective successors and permitted assigns.

 

(f)                                                  Entire Agreement.  This
Amendment No. 2 represents the entire agreement and understanding
concerning the subject matter hereof among the parties hereto, and supersedes
all other prior agreements, understandings, negotiations and discussions,
representations, warranties, 

 

 

commitments,
proposals, offers and contracts concerning the subject matter hereof, whether oral
or written.

 

(g)                                               Counterparts, etc.  This
Amendment No. 2 may be executed in any number of counterparts, each of
which shall be an original, but all of which taken together shall constitute
one and the same agreement.  Delivery of
an executed counterpart of this Amendment No. 2 by telefacsimile or other
electronic method of transmission shall have the same force and effect as
delivery of an original executed counterpart of this Amendment No. 2.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

IN WITNESS WHEREOF, the parties hereto have caused
this Amendment No. 2 to be duly executed as of the date first written
above.

 

	
   

  	
  Agent:

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Thomas A. Martin

  
	
   

  	
  Name:

  	
  Thomas A. Martin

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Lenders:

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Thomas A. Martin

  
	
   

  	
  Name:

  	
  Thomas A. Martin

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Jennifer Pricco

  
	
   

  	
  Name:

  	
  Jennifer Pricco

  
	
   

  	
  Title:

  	
  Duly Authorized Signatory

  

 

[AMENDMENT NO. 2 TO LOAN AND SECURITY
AGREEMENT]

 

 

IN WITNESS WHEREOF, the parties hereto have caused
this Amendment No. 2 to be duly executed as of the date first written
above.

 

	
   

  	
  Borrowers:

  
	
   

  	
   

  
	
   

  	
  SCRANTON PRODUCTS INC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Amy C. Bevacqua

  
	
   

  	
  Name:

  	
  Amy C. Bevacqua

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AZEK BUILDING PRODUCTS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Amy C. Bevacqua

  
	
   

  	
  Name:

  	
  Amy C. Bevacqua

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PROCELL DECKING INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By 

  	
  /s/ Amy C. Bevacqua

  
	
   

  	
  Name: 

  	
  Amy C. Bevacqua

  
	
   

  	
  Title:

  	
  Vice President

  

 

[AMENDMENT NO. 2 TO LOAN AND SECURITY
AGREEMENT]

 

 

IN WITNESS WHEREOF, the parties hereto have caused
this Amendment No. 2 to be duly executed as of the date first written
above.

 

	
   

  	
  Guarantors:

  
	
   

  	
   

  
	
   

  	
  CPG INTERNATIONAL INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Amy C. Bevacqua

  
	
   

  	
  Name:

  	
  Amy C. Bevacqua

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CPG INTERNATIONAL I INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Amy C. Bevacqua

  
	
   

  	
  Name:

  	
  Amy C. Bevacqua

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SANTANA PRODUCTS INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By 

  	
  /s/ Amy C. Bevacqua

  
	
   

  	
  Name:

  	
  Amy C. Bevacqua

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CPG SUB I CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Amy C. Bevacqua

  
	
   

  	
  Name:

  	
  Amy C. Bevacqua

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VYCOM CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Amy C. Bevacqua

  
	
   

  	
  Name:

  	
  Amy C. Bevacqua

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SANATEC SUB I CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Amy C. Bevacqua

  
	
   

  	
  Name:

  	
  Amy C. Bevacqua

  
	
   

  	
  Title:

  	
  Vice President

  

 

[AMENDMENT NO. 2 TO LOAN AND SECURITY
AGREEMENT]Exhibit
10.1

 

AMENDMENT NO. 3

TO

MASTER REPURCHASE AGREEMENT

 

THIS AMENDMENT NO. 3 TO
MASTER REPURCHASE AGREEMENT (this “Amendment”), dated as of July 22,
2010, is entered into by and between HOME LOAN CENTER, INC. (“Seller”)
and JPMORGAN CHASE BANK, N.A. (“Buyer”). Capitalized terms used and not
otherwise defined herein shall have the meanings given to them in the
Repurchase Agreement described below.

 

WITNESSETH

 

WHEREAS, Seller and Buyer
are parties to the Master Repurchase Agreement dated as of October 30,2009
(as amended prior to the date hereof and as the same may be further amended,
restated, supplemented or otherwise modified from time to time, the “Repurchase
Agreement”);

 

WHEREAS, Seller has
requested that Buyer amend the Repurchase Agreement in certain respects; and

 

WHEREAS, Buyer is willing to
amend the Repurchase Agreement on the terms and conditions set forth herein.

 

NOW, THEREFORE, in
consideration of the premises set forth above, the terms and conditions
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Seller and Buyer hereby agree as
follows:

 

Section 1.                                          Amendments to Repurchase Agreement. 
Subject to the effectiveness of this Amendment, including, without
limitation, the satisfaction of the conditions of effectiveness set forth in Section 2
below, the Repurchase Agreement is hereby amended as follows:

 

(a)                                  Paragraph 11(x)(ii) of the Repurchase Agreement is hereby
amended to read in its entirety as follows:

 

(ii)                                  Minimum Adjusted Tangible Net Worth.  Seller shall not permit the Adjusted Tangible
Net Worth of Seller (and, if applicable, its Subsidiaries, on a consolidated
basis), computed as of the end of each calendar month, to be less than
$25,000,000.

 

(b)                                 Paragraph 11(h) of the Repurchase Agreement is hereby amended to
read in its entirety as follows:

 

(h)                                 Limits on Distributions.
At any time during the continuation of a Default or Event of Default, or if a
Default or Event of Default could occur as a result of such payment, Seller
shall not, and shall not permit any of its Subsidiaries to, pay, make or
declare or incur any liability to pay, make or declare any dividend (excluding
stock dividends) or other distribution, direct or indirect,

 

 

on or on account of any shares
of its stock (or equivalent equity interest) or any redemption or other
acquisition, direct or indirect, of any shares of its stock (or equivalent
equity interest) or of any warrants, rights or other options to purchase any
shares of its stock (or equivalent equity interest), nor purchase, acquire,
redeem or retire any stock (or equivalent equity interest) in itself whether
now or hereafter outstanding.

 

(c)                                  The line in Section II of Exhibit C attached to the Repurchase
Agreement which reads “REQUIRED MINIMUM (through
Termination Date) - $44,000,000” is hereby amended to read “REQUIRED MINIMUM (through Termination Date) - $25,000,000”.

 

Section 2.                                          Conditions of Effectiveness.  This
Amendment shall become effective and be deemed effective as of the date hereof,
upon Buyer’s receipt of a copy of this Amendment duly executed by each of the
parties hereto.

 

Section 3.                                          Representations and Warranties of Seller. 
Seller hereby represents and warrants as follows:

 

(a)                                  The Repurchase Agreement as previously executed and as amended hereby
constitutes the legal, valid and binding obligation of Seller and is
enforceable against Seller in accordance with its terms.

 

(b)                                 Upon the effectiveness of this Amendment, Seller hereby (i) represents
that no Default or Event of Default exists under the terms of the Repurchase
Agreement, (ii) reaffirms all covenants, representations and warranties
made in the Repurchase Agreement, and (iii) agrees that all such
covenants, representations and warranties shall be deemed to have been remade
as of the effective date of this Amendment. 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 Buyer under the
Repurchase Agreement or any related document, instrument or agreement. Buyer
expressly reserves all of its rights and remedies, including the right to
institute enforcement actions in consequence of any existing Defaults or Events
of Default, if any, not waived hereunder or otherwise at any time without
further notice, under the Repurchase Agreement, all other documents,
instruments and agreements executed in connection therewith, and applicable
law.

 

Section 4.                                          Effect on the Repurchase Agreement.

 

(a)                                  Upon the effectiveness of this Amendment, on and after the date hereof,
each reference in the Repurchase Agreement to “this Agreement,” “hereunder,” “hereof,”
“herein” or words of like import shall mean and be a reference to the
Repurchase Agreement, as amended and modified hereby.

 

(b)                                 Except as specifically amended and modified above, the Repurchase
Agreement and all other documents, instruments and agreements executed and/or  delivered
in connection therewith shall remain in full force and effect, and are hereby
ratified and confirmed.

 

2

 

(c)                                  The execution, delivery and effectiveness of this Amendment shall
neither, except as expressly provided herein, operate as a waiver of any right,
power or remedy of Buyer, nor constitute a waiver of any provision of the
Repurchase Agreement or any other documents, instruments and agreements
executed or delivered in connection therewith.

 

Section 5.                                          Costs and Expenses. 
Seller agrees to pay all costs, fees and out-of-pocket expenses
(including attorneys’ fees and expenses charged to Buyer) reasonably incurred
by Buyer in connection with the preparation, arrangement, execution and
enforcement of this Amendment.

 

Section 6.                                          GOVERNING LAW.  THIS
AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
ST ATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES
THEREOF (EXCEPT FOR SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL
OBLIGATIONS LAW).

 

Section 7.                                          Headings.  Section headings
in this Amendment are included herein for convenience of reference only and
shall not constitute a part of this Amendment for any other purpose.

 

Section 8.                                          Counterparts.  This
Amendment may be executed by one or more of the parties to the Amendment on any
number of separate counterparts and all of said counterparts taken together
shall be deemed to constitute one and the same instrument. A facsimile copy of
any signature hereto shall have the same effect as the original thereof.

 

Section 9.                                          No Strict Construction.  The
parties hereto have participated jointly in the negotiation and drafting of
this Amendment. In the event an ambiguity or question of intent or
interpretation arises, this Amendment shall be construed as if drafted jointly
by the parties hereto and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any provisions
of this Amendment.

 

[The remainder of this page is intentionally left blank]

 

3

 

IN WITNESS WHEREOF, this
Amendment has been duly executed to be effective as of the day and year first
above written.

 

	
   

  	
  HOME LOAN
  CENTER, INC., as Seller

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Rian Furey

  
	
   

  	
  Name: Rian Furey

  
	
   

  	
  Title: SVP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.,
  as Buyer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Thanh Roettele

  
	
   

  	
   

  	
  Thanh Roettele, Senior
  Vice President

  

 

Signature Page to

Amendment No. 3 to

Master Repurchase Agreement

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