Document:

First Amendment to Warrant dated October 25, 2004

  
 Exhibit 10.55

  
 FIRST AMENDMENT TO WARRANT 
  
 THIS FIRST AMENDMENT TO WARRANT (this “Amendment”) is made
and entered into as of October 25, 2004, by and between CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED, a Maryland corporation (the “Holder”) having an address at c/o W.P. Carey & Co. LLC, 50 Rockefeller Plaza, 2nd Floor,
New York, NY 10020, and PW EAGLE, INC., a Minnesota corporation (“Company”), having an address at 1550 Valley River Drive Eugene, OR 97401. 
  
 W I T N E S S E T H: 
  
 WHEREAS, Holder and Company entered into that certain Warrant dated as of
February 28, 2002 (the “Warrant”), pursuant to which Company issued to Holder warrants for the purchase of 120,000 shares of common stock of the Company; 
  
 WHEREAS, Holder and Company desire to amend the Warrant to modify certain provisions; 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Holder and Company covenant and agree as follows: 
  
 1. All undefined capitalized terms used herein shall have the same meanings as set forth in the Warrant. 
  
 2. Article I of the Warrant is hereby amended by insertion of the following definitions to read in their entireties as follows: 
  
 “2004 Warrants” means the warrants issued
under that certain Warrant Agreement dated on or about the date hereof between the Company and the holders of a senior subordinated note in the original principal amount of $16,000,000 and a junior subordinated note in the original principal amount
of $8,000,000 executed by the Company in favor of the purchasers thereof dated on or about the date hereof.” 
  
 3. The definition of “Subsidiary” in Article I of the Warrant is amended in its entirety to read as follows: 
  
 ““Subsidiary” means any corporation or
association (a) more than 50% (by number of votes) of the Voting Stock of which is at the time owned by the Company or by one or more Subsidiaries or by the Company and one or more Subsidiaries, or any other business entity in which the Company or
one or more Subsidiaries or the Company and one or more Subsidiaries owns more than a 50% interest either in the profits or capital of such business entity or (b) whose net earnings, or portions thereof, are 

  

 
consolidated with the net earnings of the Company and are recorded on the books of the Company for financial reporting purposes in accordance with generally
accepted accounting principles. Notwithstanding the foregoing, USPoly Company, f/k/a PW Poly Corp., shall not be deemed to be a Subsidiary of the Company. 
  
 4. As a result of the issuance of the 2004 Warrants, under Sections 4.1 and 4.2(b) and (c) of the Warrant Agreement, the Warrant shall be exercisable for
125,818 shares of Common Stock and the Exercise Price shall be $0.00954 per share of Common Stock (in each case subject to adjustment, other than as a result of such issuance, as provided in the Warrant). 
  
 5. Section 4.1(o) of the Warrant is hereby amended by striking the word
“and” following the phrase “Class B Common Stock” within subsection (v) and by the addition of the following text immediately after the reference to “approved by the Company’s shareholders” within subsection (vi):

  
 “and; (vii) the issuance of shares of
Common Stock upon the exercise of the 2004 Warrants.” 
  
 6.
The last full paragraph of Section 5.2 of the Warrant is amended in its entirety to read as follows: 
  
 “If the managing underwriter, who shall be selected by the Person originally requesting such registration to manage the distribution
of the Warrant Shares being registered, advises the prospective sellers in writing that the aggregate number of Warrant Shares and shares of Common Stock proposed to be sold in the proposed distribution by the Company and other security holders
should be less than the number of such shares requested to be registered by all prospective sellers, then the shares proposed or requested to be included in such registration shall be included in the following order: (a) first, all of the shares
proposed to be sold by the Person originally requesting such registration pursuant to this Section 5.2; (b) second, any securities being registered by the Company; (c) third, any shares proposed to be sold by any security holders exercising
incidental registration rights, pro rata based upon the ratio that the number of shares of Common Stock proposed to be sold by each such prospective seller bears to the aggregate number of shares of Common Stock proposed to be sold by all such
prospective sellers; and (d) fourth, any other shares requested to be included in such registration other than pursuant to the exercise of demand or incidental registration rights. If such underwriter determines that the number of Shares of Common
Stock (including all Warrant Shares) proposed to be sold is insufficient to proceed with such registration or qualification, the Company shall immediately recapitalize its Common Stock to enable such registration and qualification to be completed as
such underwriter advises. 
  
 7. The second full paragraph of
Section 5.3 of the Warrant is amended in its entirety to read as follows: 
  
 “If the managing underwriter, who shall be selected by the Company, if such distribution is a primary offering, or by the security holders, if such security holders are exercising demand registration rights, to
manage the distribution of the shares of Common Stock being registered, advises the Company in writing that, in its opinion, the inclusion of the Piggy-Back Shares with the securities being registered by the Company and/or other prospective sellers
would materially adversely affect the distribution of all such securities, then the shares proposed or requested to be included in such registration 

  

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shall be included in the following order: (a) first, all of the shares proposed to be sold by the Company, if the registration was initiated by the Company,
or by the security holders exercising demand registration rights, as the case may be; (b) second, the securities being registered by the Company, if the registration was not initiated by the Company; (c) third, any shares proposed to be sold by any
security holders exercising incidental registration rights (including without limitation any Piggy-Back Shares), pro rata based upon the ratio that the number of shares of Common Stock proposed to be sold by each such prospective seller bears to the
aggregate number of shares of Common Stock proposed to be sold by all such prospective sellers; and (d) fourth, any other shares requested to be included in such registration other than pursuant to the exercise of demand or incidental registration
rights. In the event that some or all of the Piggy-Back Shares proposed to be sold by prospective sellers are not included in such distribution, the Company shall use its best efforts to effect and maintain any such registration or qualification
under the Securities Act and the securities or blue sky laws of any jurisdiction as may be necessary to permit such prospective seller to make its proposed offering and sale following the end of a period not to exceed 90 days after the effective
date of such registration and shall pay all expenses related thereto in accordance with Section 5.4. 
  
 8. The Company represents and warrants that the information set forth in Exhibit 1 to this Amendment, setting forth the detail for the calculation of the
amounts set forth in Section 4 hereof, is true and correct. Exhibit 1, together with this Amendment, shall constitute the certificate described in Section 4.4(a) of the Warrant. 
  
 9. This Amendment may be executed in any number of and by different parties hereto on separate counterparts, including by
facsimile, all of which, when so executed, shall be deemed an original, but all such counterparts shall constitute one and the same agreement. 
  
 10. This Amendment and the Warrant together contain the entire understanding between the parties hereto and supersede all prior agreements and
understandings, if any, relating to the subject matter hereof or thereof. Any promises, representations, warranties or guarantees not herein or therein contained and hereinafter made shall have no force and effect unless in writing, and executed by
the party or parties making such representations, warranties or guarantees. Neither this Amendment nor the Warrant nor any portion or provisions hereof or thereof may be changed, modified, amended, waived, supplemented, discharged, cancelled or
terminated orally or by any course of dealing, or in any manner other than by an agreement in writing, signed by the party to be charged. 
  
 THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the day and
year first above written. 
  

									
	 	 	 	 	 HOLDER:

			
	 	 	 	 	CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED
					
	 	 	 	 	 	 	By:	 	 /s/ Tom Lewis

	 	 	 	 	 	 	 Name:
	 	 Tom Lewis

	 	 	 	 	 	 	 Title:
	 	 Senior Vice President

			
	 	 	 	 	 COMPANY:

			
	 	 	 	 	PW EAGLE, INC., a Minnesota corporation
					
	 By:
	 	 /s/ Jerry Dukes
	 	 	 	By:	 	 /s/ Dobson West

	 Name:
	 	 Jerry Dukes
	 	 	 	 Name:
	 	 Dobson West

	 Title:
	 	 President
	 	 	 	 Title:
	 	 Secretary

  

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 EXHIBIT 1 
  
 PW Eagle, Inc. 
 Anti-Dilution Calculations 
  

					
	 	  	Before Adjustment Data	  	 
	 A
	  	Exercise Price	  	0.01
	 B
	  	Outstanding Shares	  	7,539,591
	 H
	  	Warrant Shares Issuable	  	120,000
	 C
	  	Market Price Date of Issuance	  	3.43
	 D
	  	New Warrants Issued	  	366,651
	 E
	  	Exercise Price of New Warrants	  	0.01
	 F
	  	Consideration Received on Exercise	  	3,667
	 G
	  	After Issuance Outstanding Shares	  	7,906,242
	 J
	  	Adjusted Exercise Price	  	0.00954

  

									
	 Exercise Price Adjustment:

				
	 A*
	  	 ((B*C)+F)/B
	    	=	 	0.00954
	 	  	C	    	 	 	 	  	 
	
	 Number of Shares Adjustment:

				
	 H*
	  	 A
	    	=	 	125,818
	 	  	 J
	    	 	 	 	  	 
		
	 Additional Shares Issuable
	  	5,818

  

 5Third Amendment to Lease Agreement dated October 25, 2004

 EXECUTION COPY 
  
 Exhibit 10.56 
  
 THIRD AMENDMENT TO LEASE AGREEMENT 
  
 THIS THIRD AMENDMENT TO LEASE AGREEMENT (this “Amendment”) is made and entered into as of October 25, 2004, by and between PWE (MULTI)
QRS 14-85 INC., a Delaware corporation (the “Landlord”) having an address at c/o W.P. Carey & Co. LLC, 50 Rockefeller Plaza, 2nd Floor, New York, NY 10020, and PW EAGLE, INC., a Minnesota corporation
(“Tenant”), having an address at 1550 Valley River Drive Eugene, OR 97401. 
  
 W I T N E S S E T H: 
  
 WHEREAS, Landlord and Tenant entered into that certain Lease Agreement, dated as of February 28, 2002, as amended by that certain First Amendment To Lease
Agreement, dated as of June 7, 2002 and that Second Amendment To Lease Agreement dated as of March 14, 2003 (as so amended, the “Lease”), pursuant to which Landlord leased to Tenant and Tenant leased from Landlord certain property
located in Tacoma, Washington; West Jordan, Utah; Perris, California; and Eugene Oregon as more specifically described in the Lease; 
  
 WHEREAS, Landlord and Tenant desire to amend the Lease to modify certain provisions of the financial covenants of Tenant contained in the Lease to account
for the refinancing of indebtedness by Tenant and the merger of Extrusion Technologies, Inc., a Colorado corporation, with and into Tenant; 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant covenant and agree
as follows: 
  
 A. Paragraphs 2, 3 and 4 of Exhibit
“G” of the Lease are hereby deleted in their entirety and the following provisions are inserted in lieu thereof: 
  
 “2. (i) Tenant shall comply with the Financial Covenants to the same effect as if the terms of such Financial Covenants were set
forth herein. Paragraph 2 of this Exhibit G shall be deemed amended and/or modified upon any amendment and/or modification to, and, subject to the conditions set forth in the following sentence, Landlord shall be deemed to have waived upon any
waiver of, the Financial Covenants under the terms of the Loan Agreement, without any prior notice to Landlord provided Landlord shall receive written notice from Tenant of such amendment, modification and/or waiver and a copy of such Financial
Covenants within five (5) days thereafter, and, subject to the conditions set forth in the following sentence, without Landlord’s consent. Notwithstanding, and in limitation of, the foregoing, no amendment, modification and/or waiver with
respect to any Financial Covenant shall be effective and binding upon Landlord unless (a) Landlord receives at the time of such amendment, modification, and/or waiver the Landlord’s Consideration if Tenant or any of its Subsidiaries is required
to pay or grant any Senior Lender Consideration to any of the Senior Lenders as a condition to an amendment, modification and/or waiver of the Financial Covenants and (b) such amendment and/or modification is executed and/or such waiver is granted
no later than the earlier to occur of (x) ninety (90) days following the earlier to occur of the date on which (i) Tenant notifies any of 

  

 
the Senior Lenders or (ii) any of the Senior Lenders has actual knowledge of the breach of the Financial Covenants that gave rise to the need for an
amendment, modification or waiver or (y) the date on which any of the Senior Lenders causes the obligations of Tenant, or any of its Subsidiaries, under the Loan Agreement to become due prior to their stated maturity. If at any time Tenant or any of
its Subsidiaries shall not be subject to a Loan Agreement that contains any of the Financial Covenants, Tenant shall and shall cause its Subsidiaries to, comply with the Financial Covenants set forth in the most recent Loan Agreement in the same
manner and to the same effect as if the terms of the applicable provisions of such Loan Agreement were set forth in full herein, and giving effect to any modification, amendment or waiver thereto that complies with the provisions of the Lease.

  
 3. A copy of the Financial Covenants
contained in the Loan Agreement, as the same are in effect on the date hereof, are attached hereto as Annex “I”. In the event of any amendment, modification and/or waiver of any Financial Covenants in accordance with the terms of
the Lease, Annex “I” shall be amended to include the Financial Covenants in effect as of the date of such amendment, modification and/or waiver. 
  
 4. Notwithstanding anything to the contrary contained herein or in the Lease, so long as neither Tenant nor
any Subsidiary of Tenant is or becomes an obligor or co-obligor (whether primary or secondary), guarantor or surety of, or otherwise becomes liable for the repayment of, any Indebtedness of PW Poly (or any of its Subsidiaries), including by means of
the issuance by Tenant (or any Subsidiary or Tenant) of any letter of credit or other means of credit enhancement in support of any such Indebtedness of PW Poly (or any of its Subsidiaries) (any of the foregoing an “Obligation”), then none
of PW Poly, or any of its Subsidiaries, shall be deemed a “Subsidiary” (as defined above) of Tenant for purposes of the covenants contained in this Exhibit G and/or any calculation or determination of Tenant’s compliance therewith
(and the financial condition or results of operations of PW Poly or any of its Subsidiaries shall be disregarded for such purposes); it being further understood and agreed that any liability of Tenant (or any Subsidiary of Tenant) for the payment of
any tax payment obligations of PW Poly (or any of its Subsidiaries) as a result of the filing of consolidated tax returns or the preparation of consolidated financial statements by Tenant with all its Subsidiaries (including PW Poly and its
Subsidiaries) shall not, by itself, be deemed to constitute an Obligation. 
  
 5. For purposes of this Exhibit “G” (a) references to “amend”, “amendment”, “modify” and “modification” when used in connection with the Financial Covenants shall
include a deletion of one or more, but less than all, of the Financial Covenants and (b) the following terms shall have the following meanings: 
  
 “Financial Covenants” shall mean the financial covenants set forth in the Loan Agreement and which are set forth on Annex
“I” attached hereto, as such financial covenants are amended, modified, replaced and/or deleted from time to time, including, without limitation, any amendment, modification, replacement and/or deletion pursuant to a refinancing of the
indebtedness described in the Loan Agreement and including financial covenants that are evaluated by mathematical calculations (i.e. financial ratios or other financial tests). 
  
 “Landlord’s Consideration” shall be an amount equal to the Senior Lender Consideration
multiplied by a fraction, the numerator of which is the Acquisition Cost set forth on Exhibit “E” of the Lease and the denominator of which is the principal amount outstanding under the 

  

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Loan Agreement, which shall be paid to Landlord upon the same terms that consideration is paid to the Senior Lenders. 
  
 “Loan Agreement” shall mean that certain Fourth
Amended and Restated Loan & Security Agreement dated on or about the date hereof by and among Tenant and the Senior Lenders, as amended from time to time and including any replacement loan agreement entered into by Tenant with the Senior Lenders
or upon refinancing of the indebtedness described in the Loan Agreement. 
  
 “Person” shall mean an individual, partnership, association, corporation or other entity. 
  
 “PW Poly” shall mean USPoly Company f/k/a PW Poly Corporation, a Minnesota corporation. 
  
 “Senior Lenders” shall mean Fleet Capital
Corporation, Fleet National Bank, Harris Trust & Savings Bank, The CIT Group Business Credit, Inc., and Wells Fargo Business Credit, Inc. or any lender or lenders that replace such parties. 
  
 “Senior Lender Consideration” shall mean the
aggregate consideration received by any of the Senior Lenders for the amendment to, or modification or waiver of, Financial Covenants, but excluding, without limitation, any customary loan origination, agency, arrangement or closing fees which are
exclusively for the refinancing of the indebtedness described in the Loan Agreement and not in lieu of an amendment, modification, deletion and/or waiver fee. 
  

“Subsidiary” or “Subsidiaries” of any Person means any corporation a majority of the Voting Stock of which is at
the time owned, or the management of which is otherwise controlled, directly or indirectly, through one or intermediaries, or both, by such Person. 
  
 “Voting Stock” means shares of stock of a corporation having ordinary voting power to elect the board of directors or other
managers of such corporation.” 
  
 B. Except as expressly set
forth herein, nothing herein is intended to or shall be deemed to modify or amend any of the other terms or provisions of the Lease. 
  
 C. All undefined capitalized terms used herein shall have the same meanings as set forth in the Lease. 
  
 D. This Amendment may be executed in any number of and by different parties
hereto on separate counterparts, including by facsimile, all of which, when so executed, shall be deemed an original, but all such counterparts shall constitute one and the same agreement. 
  
 E. This Amendment and the Lease together contain the entire understanding
between the parties hereto and supersede all prior agreements and understandings, if any, relating to the subject matter hereof or thereof. Any promises, representations, warranties or guarantees not herein or therein contained and hereinafter made
shall have no force and effect unless in writing, and executed by the party or parties making such representations, warranties or guarantees. Neither this Amendment nor the Lease nor any portion or provisions hereof or thereof may be changed,
modified, amended, waived, supplemented, discharged, cancelled or 

  

 3 

 
terminated orally or by any course of dealing, or in any manner other than by an agreement in writing, signed by the party to be charged. 
  
 THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to Lease Agreement to be duly
executed as of the day and year first above written. 
  

			
	LANDLORD:
	
	 PWE (MULTI) QRS 14-85, INC.,

	 a Delaware corporation

		
	By:	 	 /s/ Tom Lewis

	 Name:
	 	 Tom Lewis

	 Title:
	 	 Senior Vice President

	
	TENANT:
	
	 PW EAGLE, INC., a Minnesota corporation

		
	By:	 	 /s/ Dobson West

	 Name:
	 	 Dobson West

	 Title:
	 	 Secretary

  

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 ANNEX “I”

  

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