Document:

exv10w1

 

Exhibit 10.1

RELIANCE STEEL & ALUMINUM CO.

RSAC MANAGEMENT CORP.

FOURTH AMENDMENT

TO CREDIT AGREEMENT

     This FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Fourth Amendment”) is dated as of December 6,
2004 and entered into by and among Reliance Steel & Aluminum Co., a California corporation (“RSA”),
RSAC Management Corp., a California corporation (“RSAC Management” and together with RSA, jointly
and severally, the “Borrowers” and individually, a “Borrower”), the financial institutions listed
on the signature pages hereof (the “Lenders”) and Bank of America, N.A., as administrative agent
for Lenders (the “Administrative Agent”), and, for purposes of Section 5 hereof, the Guarantors (as
defined in Section 5 hereof) listed on the signature pages hereof, and is made with reference to
that certain Credit Agreement dated as of October 24, 2001, as amended by the First Amendment to
Credit Agreement dated as of April 1, 2002, the Second Amendment to Credit Agreement dated as of
February 19, 2003, and the Third Amendment to Credit Agreement dated as of July 1, 2003 (as
amended, the “Credit Agreement”), by and among the Borrowers, Lenders and Administrative Agent.
Capitalized terms used herein without definition shall have the same meanings herein as set forth
in the Credit Agreement.

RECITALS

     WHEREAS, the Borrowers and the Lenders desire to amend the Credit Agreement to make certain
amendments as set forth below;

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

Section 1. AMENDMENTS TO THE CREDIT AGREEMENT

     1.1 Amendments to Section 7: Company’s Negative Covenants.

     Subsection 7.16 of the Credit Agreement is hereby amended by deleting clause (c) thereof in
its entirety and substituting the following therefor:

     “(c) cash dividends payable to RSA stockholders and purchases, redemptions or other
acquisitions of shares of RSA capital stock or warrants, rights or options to acquire any
such shares, for cash not exceeding an amount equal to (i) in any Fiscal Year, 25% of Net
Income earned in the immediately preceding Fiscal Year, provided that for the
purposes of this subsection 7.16(c)(i), the Net Income for the Fiscal Year ended December
31, 2002 shall include a pro forma adjustment so that the net income of any Subsidiary
acquired in 2002 is included in Net Income for the full Fiscal Year 2002, but no more than
$3,000,000 in any Fiscal Quarter or (ii) in any Fiscal Quarter, so long as (x) EBITDA of RSA
and its Subsidiaries on a consolidated

 

 

basis for the immediately preceding Fiscal Quarter was at least $30,000,000 and (y) the
Leverage Ratio as of the last day of the immediately preceding Fiscal Quarter was less than
3.00 to 1.00, $3,000,000; provided that if a dividend permitted by this Section
7.16(c) to be paid in any Fiscal Quarter is declared but not paid in such Fiscal Quarter,
such dividend may be paid in the immediately following Fiscal Quarter without reducing the
amount otherwise permitted by this Section 7.16(c) to be paid in such following Fiscal
Quarter; provided further that immediately after giving effect to any such
proposed action, no Default or Event of Default would exist.”

Section 2. CONDITIONS TO EFFECTIVENESS

     This Fourth Amendment shall become effective as of July 1, 2004 upon the execution of
counterparts hereof by the Borrowers, the Guarantors, the Administrative Agent and counterparts of
the Lenders constituting Requisite Lenders and receipt by the Borrowers and the Administrative
Agent of written or telephonic notification of such execution and authorization of delivery
thereof.

Section 3. BORROWERS’ REPRESENTATIONS AND WARRANTIES

     In order to induce Lenders to enter into this Fourth Amendment and to amend the Credit
Agreement in the manner provided herein, the Borrowers represent and warrant to each Lender that
the following statements are true, correct and complete:

     3.1 Corporate Power and Authority. Each Borrower Party has all requisite corporate power and
authority to enter into this Fourth Amendment and the Loan Documents to which it is party, and to
carry out the transactions contemplated thereby, and to perform its respective obligations under
the applicable Loan Documents and the Credit Agreement as amended by this Fourth Amendment (the
“Amended Agreement”).

     3.2 Authorization of Agreements. The execution and delivery of this Fourth Amendment and the
Loan Documents, and the performance of the Amended Agreement and the other Loan Documents to which
it is a party, have been duly authorized by all necessary corporate action on the part of each
Borrower Party.

     3.3 No Conflict. The execution and delivery by each Borrower Party of this Fourth Amendment
and the Loan Documents and the performance by each Borrower Party of the Loan Documents to which it
is a party do not and will not (i) violate any provision of any law or any governmental rule or
regulation applicable to such Borrower Party, the Certificate or Articles of Incorporation or
Bylaws of such Borrower Party or any order, judgment or decree of any court or other agency of
government binding on such Borrower Party, (ii) conflict with, result in a breach of or constitute
(with due notice or lapse of time or both) a default under any Contractual Obligation of such
Borrower Party, (iii) result in or require the creation or imposition of any Lien upon any of the
properties or assets of such Borrower Party (other than Liens created or permitted under any of the
Loan Documents in favor of Administrative Agent on behalf of Lenders), or (iv) require any approval
of stockholders or any approval or consent of any Person under any Contractual Obligation of such
Borrower Party that has not been obtained.

2

 

     3.4 Governmental Consents. No authorization, consent, approval, order, license or permit
from, or filing, registration or qualification with, any Governmental Authority is or will be
required to authorize or permit under applicable Laws the execution, delivery and performance by
each Borrower Party of this Fourth Amendment and the Loan Documents to which it is a party.

     3.5 Binding Obligation. This Fourth Amendment and each of the Loan Documents to which a
Borrower Party is a party will, when executed and delivered by such party, constitute the legal,
valid and binding obligation of such party, enforceable against such party in accordance with its
terms, except as enforcement may be limited by Debtor Relief Laws or equitable principles relating
to the granting of specific performance and other equitable remedies as a matter of judicial
discretion.

     3.6 Incorporation of Representations and Warranties From Credit Agreement. The
representations and warranties contained in Section 5 of the Credit Agreement are and will be true,
correct and complete in all material respects on and as of the Fourth Amendment Effective Date to
the same extent as though made on and as of the Fourth Amendment Effective Date, except to the
extent such representations and warranties specifically relate to an earlier date, in which case
they were true, correct and complete in all material respects on and as of such earlier date.

     3.7 Absence of Default. No event has occurred and is continuing or will result from the
consummation of the transactions contemplated by this Fourth Amendment or any of the Loan Documents
that would constitute an Event of Default or a Potential Event of Default.

Section 4. MISCELLANEOUS

     4.1 Reference to and Effect on the Credit Agreement and the Other Loan Documents.

     A. On and after the Effective Date, each reference in the Credit Agreement to “this
Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Credit
Agreement, and each reference in the other Loan Documents to the “Credit Agreement”,
“thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean
and be a reference to the Amended Agreement.

     B. Except as specifically amended by this Fourth Amendment, the Credit Agreement and
the other Loan Documents shall remain in full force and effect and are hereby ratified and
confirmed.

     C. The execution, delivery and performance of this Fourth Amendment shall not, except
as expressly provided herein, constitute a waiver of any provision of, or operate as a
waiver of any right, power or remedy of Agent or any Lender under, the Credit Agreement or
any of the other Loan Documents.

3

 

     4.2 Fees and Expenses. Borrowers acknowledge that all costs, fees and expenses as described
in subsection 10.3 of the Credit Agreement incurred by Administrative Agent and its counsel with
respect to this Fourth Amendment and the documents and transactions contemplated hereby shall be
for the account of Borrowers.

     4.3 Headings. Section and subsection headings in this Fourth Amendment are included herein
for convenience of reference only and shall not constitute a part of this Fourth Amendment for any
other purpose or be given any substantive effect.

     4.4 Applicable Law. THIS FOURTH AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF CALIFORNIA (INCLUDING WITHOUT LIMITATION SECTION 1646.5 OF THE CIVIL
CODE OF THE STATE OF CALIFORNIA), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

     4.5 Counterparts. This Fourth Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed and delivered
shall be deemed an original, but all such counterparts together shall constitute but one and the
same instrument; signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to the same document.

Section 5. ACKNOWLEDGEMENT AND CONSENT

     Each guarantor listed on the signatures pages hereof (each, a “Guarantor”) hereby acknowledges
and agrees that the Master Subsidiary Guaranty to which it is a party or otherwise bound shall
continue in full force and effect and that all of its obligations thereunder shall be valid and
enforceable and shall not be impaired or limited by the execution or effectiveness of this Fourth
Amendment. Each Guarantor represents and warrants that all representations and warranties
contained in the Amended Agreement and the Loan Documents to which it is a party or otherwise bound
are true, correct and complete in all material respects on and as of the Fourth Amendment Effective
Date to the same extent as though made on and as of that date, except to the extent such
representations and warranties specifically relate to an earlier date, in which case they were
true, correct and complete in all material respects on and as of such earlier date.

     Each Guarantor acknowledges and agrees that (i) notwithstanding the conditions to
effectiveness set forth in this Fourth Amendment, such Guarantor is not required by the terms of
the Credit Agreement or any other Loan Document to consent to the amendments to the Credit
Agreement effected pursuant to this Fourth Amendment and (ii) nothing in the Credit Agreement, this
Fourth Amendment or any other Loan Document shall be deemed to require the consent of such
Guarantor to any future amendments to the Credit Agreement.

4

 

     IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be duly executed
and delivered by their respective officers thereunto duly authorized as of the date first written
above.

	 	 	 	 	 
	 	RELIANCE STEEL & ALUMINUM CO.,

RSAC MANAGEMENT CORP.,

each a California corporation

 	 
	 	By:  	/s/ David H. Hannah
 	 
	 	 	Name:  	David H. Hannah 	 
	 	 	Title:  	Chief Executive Officer of each of the

foregoing 	 
	 
	 	 	 
	 	By:  	             /s/ Karla Lewis
 	 
	 	 	Name:  	Karla Lewis 	 
	 	 	Title:  	Executive Vice President and 

Chief Financial Officer of each of the

foregoing 	 
	 

S-1

 

	 	 	 	 	 
	 	For the purposes of Section 5 hereof:

ALLEGHENY STEEL DISTRIBUTORS, INC.

ALUMINUM AND STAINLESS, INC.

AMI METALS, INC.

CCC STEEL, INC.

CENTRAL PLAINS STEEL CO.

CHATHAM STEEL CORPORATION

DURRETT SHEPPARD STEEL CO., INC.

PHOENIX CORPORATION

PACIFIC METAL COMPANY

PDM STEEL SERVICE CENTERS, INC.

TOMA METALS, INC.

VIKING MATERIALS, INC.

 	 
	 	By:  	/s/ Karla Lewis
 	 
	 	 	Name:  	Karla Lewis 	 
	 	 	Title:  	Vice President and Secretary of each of the

foregoing 	 
	 
	 	AMERICAN METALS CORPORATION

LIEBOVICH BROS., INC.

SISKIN STEEL & SUPPLY COMPANY, INC.

PRECISION STRIP, INC.

 	 
	 	By:  	/s/ Karla Lewis
 	 
	 	 	Name:  	Karla Lewis 	 
	 	 	Title:  	Vice President and Assistant Secretary of

each of the foregoing 	 
	 

S-2

 

	 	 	 	 	 
	 	LUSK METALS

SERVICE STEEL AEROSPACE CORP.

VALEXCORP.

 	 
	 	By:  	/s/ Karla Lewis
 	 
	 	 	Name:  	Karla Lewis 	 
	 	 	Title:  	Chief Financial Officer and Secretary of each

of the foregoing 	 
	 
	 	AMERICAN STEEL, L.L.C.

 	 
	 	By:  	/s/ Craig A. Schwartz
 	 
	 	 	Name:  	Craig A. Schwartz 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

S-3

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as Administrative Agent

 	 
	 	By:  	/s/ Ken Puro
 	 
	 	 	Name:  	Ken Puro 	 
	 	 	Title:  	Vice President 	 
	 

S-4

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as Issuing Lender and a Lender

 	 
	 	By:  	/s/ Robert Troutman
 	 
	 	 	Name:  	Robert Troutman 	 
	 	 	Title:  	Senior Vice President 	 
	 

S-5

 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION, formerly known

as First Union National Bank,

as Syndication Agent and as a Lender

 	 
	 	By:  	/s/Nathan R. Rantala
 	 
	 	 	Name:  	Nathan R. Rantala 	 
	 	 	Title:  	 	 
	 

S-6

 

	 	 	 	 	 
	 	THE CHASE MANHATTAN BANK,

as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

S-7

 

	 	 	 	 	 
	 	UNION BANK OF CALIFORNIA, N.A.,

as a Lender

 	 
	 	By:  	/s/ Gail I Boyle
 	 
	 	 	Name:  	Gail I Boyle 	 
	 	 	Title:  	 	 
	 

S-8

 

	 	 	 	 	 
	 	COMERICA WEST INCORPORATED,

as a Lender

 	 
	 	By:  	/s/ Elise Walker
 	 
	 	 	Name:  	Elise Walker 	 
	 	 	Title:  	 	 
	 

S-9

 

	 	 	 	 	 
	 	CREDIT SUISSE FIRST BOSTON,

as a Lender

 	 
	 	By:  	/s/  Phillip Ho
 	 
	 	 	Name:  	Phillip Ho 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	                                                     /s/  Cassandra Droogan
 	 
	 	 	Name:  	Cassandra Droogan 	 
	 	 	Title:  	 	 
	 

S-10

 

	 	 	 	 	 
	 	THE NORTHERN TRUST COMPANY,

as a Lender

 	 
	 	By:  	/s/ John E. Burda
 	 
	 	 	Name:  	John E. Burda 	 
	 	 	Title:  	 	 
	 

S-11

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

S-12

 

	 	 	 	 	 
	 	FIFTH THIRD BANK,

as a Lender

 	 
	 	By:  	/s/ Gary Losey
 	 
	 	 	Name:  	Gary Losey 	 
	 	 	Title:  	 	 
	 

S-13

 

	 	 	 	 	 
	 	MIZUHO CORPORATE BANK, LTD., 

formerly known as The Industrial Bank of 

Japan, Limited, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

I-1<PAGE>
                                                                   EXHIBIT 10.UU

                             AMENDMENT NO. 3 TO THE
                               EL PASO CORPORATION
                           SUPPLEMENTAL BENEFITS PLAN

         Pursuant to Section 6.7 of the El Paso Corporation Supplemental
Benefits Plan, Amended and Restated effective as of December 7, 2001, as amended
(the "Plan"), the Plan is hereby amended as follows, effective December 17,
2004:

         Section 6.7 is hereby amended by adding the following new paragraph at
the end thereof:

                  "The American Jobs Creation Act of 2004 (the "Act") imposes
         certain restrictions on deferred compensation plans such as the Plan,
         effective for 2005 and later years, which might result in unfavorable
         tax consequences to participants if the terms of the Plan do not comply
         with the Act. Specific guidance regarding the terms and effect of the
         Act is expected from the Internal Revenue Service, but may not be
         published in time to amend the Plan prospectively, before the Act
         becomes effective. Therefore, notwithstanding this or any other
         provision of the Plan to the contrary, the Board or the Compensation
         Committee and the Management Committee, as appropriate, reserve the
         right to amend the Plan in any manner that is determined to be
         appropriate, or to terminate the Plan and adopt a plan designed to
         replace this Plan and be in compliance with the Act, retroactively, to
         comply with the requirements imposed on nonqualified deferred
         compensation plans by the Act, as codified in Section 409A of the Code,
         and regulations to be promulgated thereunder."

         IN WITNESS WHEREOF, the Company has caused this amendment to be duly
executed on this 17th day of December, 2004.

                                           EL PASO CORPORATION

                                           By:     /s/ Susan B. Ortenstone
                                               ---------------------------------
                                                 Susan B. Ortenstone
                                                 Its Senior Vice President,
                                                 Human Resources

Attest:

    /s/ David L. Siddall
----------------------------
    Corporate Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]