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Exhibit 10.19    
    

 
 

NINTH AMENDMENT TO AMENDED AND RESTATED
  LOAN AND SECURITY AGREEMENT    
    

        NINTH AMENDMENT, dated as of May 23, 2006 to the Amended and Restated Loan and Security Agreement, dated as of May 22, 2000, among HWC Wire &
Cable Company (formerly known as Houston Wire & Cable Company) ("Borrower"), the lenders named therein ("Lenders") and Bank of America, N.A. ("Bank of America") as
successor-in-interest to Fleet Capital Corporation, as agent for said Lenders (Bank of America, in such capacity, "Agent"). Said Amended and Restated Loan and Security
Agreement, as amended by a certain First Amendment to Amended and Restated Loan and Security Agreement by and among Borrower, Lenders and Agent dated as of July 13, 2000, by a certain Second
Amendment to Amended and Restated Loan and Security Agreement by and among Borrower, Lenders and Agent dated May 30, 2001, by a certain Third Amendment to Amended and Restated Loan and Security
Agreement by and among Borrowers, Lenders and Agent dated October 22, 2001, by a certain Fourth Amendment to Amended and Restated Loan and Security Agreement by and among Borrower, Lenders and
Agent dated December 31, 2002, by a certain Fifth Amendment to Amended and Restated Loan and Security Agreement by and among Borrower, Lenders and Agent dated November 19, 2003, by a
certain Sixth Amended to Amended and Restated Loan and Security Agreement dated as of May 26, 2005 by and among Borrower, Lenders and Agent, by a certain Seventh Amendment to Amended and
Restated Loan and Security Agreement dated December 14, 2005 by and among Borrower, Agent and Lenders and by a certain Eighth Amendment to Amended and Restated Loan and Security Agreement dated
December 30, 2005 by and among Borrower, Agent and Lenders and as it may be further amended, is hereinafter referred to as the "Loan Agreement." The terms used herein and not otherwise defined
shall have the meanings attributed to them in the Loan Agreement. References to Agent and/or any Lender shall include Agent's or such Lender's predecessor(s)-in-interest. 

        WHEREAS,
Lenders, Agent and Borrower desire to make certain amendments and modifications to the Loan Agreement. 

        NOW
THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained and contained in the Loan Agreement, the parties hereto hereby agree as follows: 

        1.    Additional and Amended Definitions.    The following definitions of "Guarantor", "Ninth Amendment", "Ninth
Amendment Effective Date" and "Qualified IPO" are hereby inserted in Appendix A to the Loan Agreement. 

*    *    *

        Guarantor—Houston Wire & Cable Company, a Delaware corporation formerly known as HWC Holding Corporation. 

*    *    *

        Ninth Amendment—that certain Ninth Amendment to Amended and Restated Loan and Security Agreement dated as of May 23,
2006 by and among Borrower, Agent and Lenders. 

*    *    *

        Ninth Amendment Effective Date—the date on which the conditions precedent to the effectiveness of the Ninth Amendment is
satisfied. 

*    *    *

        Qualified IPO—an underwritten initial public offering of equity Securities of either Borrower or Guarantor resulting in net
proceeds to either Borrower or Guarantor in excess of Ten Million Dollars ($10,000,000). 

 

        2.    Mandatory Prepayments.    Subsection 3.3.2 of the Loan Agreement is hereby deleted and the following is inserted
in its stead: 

        "3.3.2    Other Mandatory Prepayments.    

        (a)   Except
as provided below, if Borrower receives any proceeds from any tax refunds, indemnity payments or pension reversions, Borrower shall pay to Agent for the ratable
benefit of Lenders, as and when received by Borrower and as a mandatory prepayment of the Loans, a sum equal to the proceeds of such tax refund, indemnity payment or pension reversion so received by
Borrower. The foregoing notwithstanding, if Borrower receives any indemnity payment which effectively reimburses Borrower for a cost or expense incurred or to be incurred by Borrower, then the
proceeds of such indemnity payment paid over to Agent pursuant to the preceding sentence shall be applied against outstanding Revolving Credit Loans. 

        (b)   Borrower
shall make a mandatory prepayment of the Loans in the amount of the net proceeds received by Borrower or Guarantor from any offering or sale of its debt or
equity Securities (other than proceeds from a Qualified IPO). 

        (c)   Borrower
shall prepay the Loans in amounts equal to Borrower's Excess Cash Flow with respect to each fiscal year of Borrower during the Term hereof, commencing with the
fiscal year ending December 31, 2006, such prepayments to be based upon, and made within 5 Business Days following the due date for delivery by Borrower to Agent of the annual financial
statements required by subsection 8.1.3(i) hereof and each such prepayment shall be applied to the Loans in the manner specified in the second sentence of subsection 3.3.1 until payment thereof
in full. 

        (d)   Borrower
shall make a mandatory prepayment of the Loans in the amount of the net proceeds received by Borrower or Guarantor from a Qualified IPO. 

        (e)   Any
applicable prepayment made pursuant to subsection 3.3.2(a), (b) or (c) above shall be applied first to the installments of principal due under Term
Notes B, pro rata, in inverse order of their maturities until paid in full, second, to the installments of principal due under Term Notes A, pro rata, in inverse order of their maturities until paid
in full, and third, to reduce the outstanding principal balance of the Revolving Credit Loans. Any applicable prepayment made pursuant to subsection 3.3.2(d) above shall be applied first to the
installments of principal due under Term Notes B, pro rata, in inverse order of their maturities until paid in full, and second to reduce the outstanding principal balance of the Revolving Credit
Loans. 

        (e)   Any
prepayments of the Term Loans, whether voluntary or involuntary may not be reborrowed." 

        3.    Conditions Precedent.    This Ninth Amendment shall become effective at such time as Agent shall have received a
copy of this Ninth Amendment in form and substance acceptable to Agent, duly executed by Borrower, Guarantor, Agent and each Lender 

        The
date on which such condition precedent is satisfied or waived is hereinafter referred to as the "Ninth Amendment Effective Date." 

        4.    Continuing Effect.    Except as otherwise specifically set out herein, the provisions of the Loan Agreement
shall remain in full force and effect. 

        5.    Governing Law.    This Ninth Amendment and the obligations arising hereunder shall be governed by, and construed
and enforced in accordance with, the laws of the State of Illinois applicable to contracts made and performed in such state, without regard to the principles thereof regarding conflict of laws. 

        6.    Counterparts.    This Ninth Amendment may be executed in any number of separate counterparts, each of which
shall, collectively and separately, constitute one agreement. 

(Signature Page Follows)

2

 
 
 

(Signature Page to Ninth Amendment to Amended and Restated
  Loan and Security Agreement)

        IN
WITNESS WHEREOF, this Ninth Amendment has been duly executed as of the first day written above. 

	

 	
 	

 	
 	

 	
 	

 
	HWC WIRE & CABLE COMPANY, as Borrower	 	HOUSTON WIRE & CABLE COMPANY, as Guarantor
	

By:	
 	

/s/ Nicol G. Graham
	
 	

By:	
 	

/s/ Charles A. Sorrentino

	Name:	 	Nicol G. Graham
	 	Name:	 	Charles A. Sorrentino

	Title:	 	Vice President and CFO
	 	Title:	 	President and CEO

	

THE CIT GROUP/BUSINESS CREDIT, INC., as a Lender	
 	

BANK OF AMERICA, N.A., as Agent and a Lender
	

By:	
 	

/s/ Chad A. Ramsey
	
 	

By:	
 	

/s/ Christopher M. Waf

	Name:	 	Chad A. Ramsey
	 	Name:	 	Christopher M. Waf

	Title:	 	Vice President
	 	Title:	 	Vice President

	

Revolving Loan Commitment: $27,500,000

Term Loan A Commitment: $2,250,000

Term Loan B Commitment: $5,000,000	
 	

Revolving Loan Commitment: $27,500,000

Term Loan A Commitment: $2,250,000

Term Loan B Commitment: $5,000,000

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Exhibit 10.19

NINTH AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

(Signature Page to Ninth Amendment to Amended and Restated Loan and Security Agreement)Exhibit 10.12

Non-Employee Director
Compensation Schedule

(Effective as of January 1, 2006)

	
  Director Annual Retainer

  	
   

  	
  $35,000
  (to be paid in arrears on a quarterly basis)

  
	
   

  	
   

  	
   

  
	
  Annual
  Restricted Stock Grant

  	
   

  	
  Fair
  market value on date of grant of $25,000; subject to 3-year vesting

  Beginning with fiscal year 2007, grant to be made at the first regularly
  scheduled Board meeting of the year; initial grant was made on April 4, 2006

  
	
   

  	
   

  	
   

  
	
  One-Time
  Restricted Stock Grant (for newly elected/appointed directors only; directors
  as of January 1, 2006 not eligible)

  	
   

  	
  Fair
  market value on date of grant of $75,000; subject to 3-year vesting

   

  Grant
  to be made as soon as practicable after election/appointment

  
	
   

  	
   

  	
   

  
	
  Chairman
  of the Board — Additional Annual Retainer

  	
   

  	
  $65,000
  (to be paid in arrears on a quarterly basis)

  
	
   

  	
   

  	
   

  
	
  Audit
  Committee Chair— Additional Annual Retainer

  	
   

  	
  $10,000
  (to be paid in arrears on a quarterly basis)

  
	
   

  	
   

  	
   

  
	
  Chair
  of each other Board Committee — Additional Annual Retainer

  	
   

  	
  $5,000
  (to be paid in arrears on a quarterly basis)

  
	
   

  	
   

  	
   

  
	
  Board
  Meeting Fee

  	
   

  	
  $1,500
  ($750 for telephonic Board meetings)

  
	
   

  	
   

  	
   

  
	
  Committee
  Meeting Fee

  	
   

  	
  $750

  
	
   

  	
   

  	
   

  
	
  Director
  Ownership Requirement

  	
   

  	
  •    5,000 shares of common stock

   

  •    Five years to reach ownership requirement
  (measured from January 1, 2006 for existing directors and from his/her
  election/appointment to the Board for other directors)

   

  •    Directors may not sell vested restricted stock
  (other than to satisfy minimum tax withholding obligations at the time of
  vesting) until the ownership requirement is met

  
	
   

  	
   

  	
   

  

 

 

	
  Out
  of Pocket Expenses

  	
   

  	
  Reimbursement
  for reasonable out of pocket expenses incurred in connection with Board
  Meetings or other company business

  

 

 

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