Document:

First Amendment to Credit Agreement, dated December 3, 2004

 Exhibit 4.8 
  
 FIRST AMENDMENT 
 to 
 CREDIT AGREEMENT 
  
 This FIRST AMENDMENT to CREDIT AGREEMENT (this “Amendment”) is entered into and effective as of December 3, 2004, by and among Huttig Building
Products, Inc., a Delaware corporation (the “Company”), LaSalle Bank National Association (“LaSalle”), as Administrative Agent, and LaSalle and the other lenders listed on the signature page hereto (the “Lenders”).

  
 Recitals: 
  

	A.	The Company, Administrative Agent and the Lenders are parties to that certain Credit Agreement dated as of September 24, 2004 (the “Loan Agreement”).

  

	B.	The Company, Administrative Agent, and the Required Lenders have agreed to amend the Loan Agreement on the terms and conditions contained herein. 

  
 Amendment 
  
 Therefore, in consideration of the mutual agreements herein and other
sufficient consideration, the receipt of which is hereby acknowledged, the Company, Administrative Agent and the Required Lenders hereby amend the Loan Agreement as follows: 
  
 1. Definitions. All references to the “Agreement” or the “Loan Agreement” in the Loan Agreement and in this
Amendment shall be deemed to be references to the Loan Agreement as it is amended hereby and as it may be further amended, restated, extended, renewed, replaced, or otherwise modified from time to time. Capitalized terms used and not otherwise
defined herein have the meanings given them in the Loan Agreement. 
  
 2.
Conditions to Effectiveness of Amendment. This Amendment shall become effective as of the date first written above, or such other date as expressly set forth herein, but only if this Amendment has been executed by the Company, Administrative
Agent and the Required Lenders, and only if all of the documents listed on Exhibit A to this Amendment have been delivered and, as applicable, executed, sealed, attested, acknowledged, certified, or authenticated, each in form and substance
satisfactory to Administrative Agent and the Required Lenders. 
  
 3.
Consent. The Company has advised Administrative Agent that it intends to consummate a Permitted Sale by selling the assets of its Builder’s Resource location in or about Baltimore, MD (the “Subject Sale”) to Builder Resource
Supply Corporation, a Maryland corporation (“Buyer”). As a part of the consideration for the Subject Sale, Buyer will deliver to the Company a promissory note, in the original principal amount not to exceed $1,200,000 (the “Subject
Sale Note”) The Company’s receipt of the Subject Sale Note in partial consideration of the Subject Sale is not permitted by Section 11.9 of the Loan Agreement. 
  
 Notwithstanding the terms of Section 11.9, the Required Lenders hereby consent to the Company’s receipt of the Subject Sale Note.
Notwithstanding the provisions of Section 6.2.2. and 6.3.2, the Required Lenders hereby consent to the Company’s retention of any payments of principal or interest on the Subject Sale Note. Notwithstanding the terms of Section 5.2(c) of the
Collateral and Guaranty Agreement, the Required Lenders hereby agree that the Company may retain possession of the Subject Sale Note unless and until the Administrative Agent requests that the Subject Sale Note be delivered to Administrative Agent.
The Company agrees that upon any such request from the Administrative Agent, 

  

 1 

 
the Company shall promptly deliver the original Subject Sale Note to the Administrative Agent, with such endorsements, pledge agreements and other documents
that the Administrative Agent may reasonably request from time to time. 
  
 4.
Supplements to Disclosure Schedules. Schedule 1, Schedule 4 and Schedule 6 of the Guaranty and Collateral Agreement are hereby supplemented with the supplements attached to this Amendment. 
  
 5. Acknowledgement of Certain Provisions. 
  
 The Company acknowledges and agrees that in the event that it or another
Loan Party creates one or more new Subsidiaries in connection with the Texas Wholesale Building Materials Acquisition that the Company shall comply, or cause such other Loan Party to comply, with the terms and provisions of the Loan Agreement
(including, without limitation, Section 10.9) and the Guaranty and Collateral Agreement, and shall execute, or cause the execution of, all documents, security agreements, joinder agreements and guaranties as may be reasonably requested by
Administrative Agent in connection therewith. The Required Lenders acknowledge and agree that no further consent in connection with such acquisition or formation of any such Subsidiary is required from the Required Lenders in connection with the
creation of any such Subsidiary if the Company complies and causes compliance with the terms and provisions of the Loan Agreement (including, without limitation, Section 10.9) and the Guaranty and Collateral Agreement. 
  
 6. Amendments to Loan Agreement. 
  
 Subject to the terms and conditions set forth herein: 
  
 6.1. Sale of Accounts Receivable. Section 11.4(c) is hereby deleted
and replaced with the following: 
  
 “(c) sell or assign
with or without recourse any Accounts or other receivables in excess of $250,000 in the aggregate in any Fiscal Year,” 
  
 6.2. Acquisitions. 
  
 Section 11.4(d)(iv)(C) of the Loan Agreement is hereby deleted and replaced with the following: 
  
 “(C) the aggregate consideration to be paid by the Loan Parties (including any Debt assumed or issued in connection
therewith, the amount thereof to be calculated in accordance with GAAP, the fair market value of any non-cash consideration, and any earn outs or deferred purchase price payments to be calculated in accordance with GAAP) in connection with such
Acquisition (or any series of related Acquisitions) is less than $15,000,000 per Acquisition (except the Texas Wholesale Building Materials Acquisition is not subject to the foregoing $15,000,000 limitation), and $50,000,000 in the aggregate for all
Acquisitions (including, without limitation, the Texas Wholesale Building Materials Acquisition) since the Closing Date;” 
  
 6.3. Investments. Section 11.9(f) is hereby deleted and replaced with the following: 
  
 “(f) Investments in (i) securities of Account Debtors received pursuant to any plan of reorganization or similar
arrangement upon the bankruptcy or insolvency of such account debtors or (ii) promissory notes received from Account Debtors in settlement of Accounts or other receivables in the ordinary course of business, which, upon the request of Administrative
Agent shall be promptly delivered to Administrative Agent together with such endorsements, pledge agreements and other documents that the Administrative Agent may reasonably request from time to time;” 
  

 2 

 6.4. Net Income. A new defined term “Net Income” is hereby added to Section 1.1 as
follows: 
  
 “Net Income” means net income, as
determined pursuant to GAAP. 
  
 6.5. Total Asset Definition.

  
 The definition of “Total Assets” is deleted and replaced with
the following: 
  
 “Total Assets” means the sum
of all assets as presented in the balance sheet in Company’s most recent consolidated financial statements delivered to Administrative Agent and each of the Lenders as required hereunder but excluding any LIFO reserve; provided, however, if a
Collateral Access Agreement for the location acquired in the Texas Wholesale Building Materials Acquisition is not provided to Administrative Agent within ninety (90) days following the close of such acquisition, then from and after such ninetieth
day, all Inventory located at such location shall be excluded from the calculation of “Total Assets.” 
  
 6.6. Texas Wholesale Building Materials Acquisition Definition. A new defined term “Texas Wholesale Building Materials Acquisition” is
hereby added in alphabetical order to Section 1.1 of the Loan Agreement: 
  
 “Texas Wholesale Building Materials Acquisition” means the Acquisition by the Company, of substantially all the assets of Texas Wholesale Building Materials, Inc. and/or substantially all the assets
of any of its subsidiaries (but excluding any equity interests in any such subsidiaries). 
  
 7. Representations and Warranties of the Company. The Company hereby represents and warrants to Administrative Agent, the Issuing Lender and each Lender as of the date hereof that (i) this Amendment and each of
the other documents, agreements, certificates executed in connection herewith (the “Amendment Documents”) have been duly authorized by the Company’s board of directors, (ii) since September 24, 2004, the Company’s articles of
incorporation and bylaws have not been amended, restated or otherwise modified, (iii) no consents are necessary from any third Person for the Company’s execution, delivery or performance of this Amendment and the other Amendment Documents which
have not been obtained, (iv) this Amendment, the other Amendment Documents, the Loan Agreement and all other Loan Documents to which it is a party constitute the legal, valid and binding obligation of the Company enforceable against the Company in
accordance with its terms subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors’ rights generally and to general principles of equity, (v) except as set forth in the disclosure schedules to the Loan
Agreement and the other Loan Documents (including the supplements to Schedule 1, Schedule 4 and Schedule 6 to the Collateral and Guaranty Agreement attached to this Amendment), the representations and warranties in the Loan Agreement and the other
Loan Documents were true and correct when made and are true and correct in all material respects as of the date hereof (except to the extent stated to relate to a specific earlier date, in which case such representations and warranties shall be true
and correct as of such earlier date), (vi) there exists no Unmatured Event of Default or Event of Default under the Loan Agreement (as amended by this Amendment) or the other Loan Documents, and (vii) there are no proceedings of any kind, pending or
to the knowledge of any Senior Officer, threatened against the Company or any other Loan Party which might reasonably be expected to have a Material Adverse Effect. 
  
 8. Effect of Amendment. The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power
or remedy of Administrative Agent, the Issuing Lender, or any Lender under the Loan Agreement or any of the other Loan Documents, nor constitute a waiver of any 
  

 3 

 provision of the Loan Agreement, any of the other Loan Documents or any existing Unmatured Event of Default or Event of
Default, nor act as a release or subordination of the Liens and security interests of Administrative Agent under the Loan Documents. Each reference in the Loan Agreement to “the Agreement”, “hereunder”, “hereof”,
“herein”, or words of like import, shall be read as referring to the Loan Agreement as amended by this Amendment. 
  
 9. Reaffirmation. The Company hereby acknowledges and confirms that (i) except as expressly amended hereby the Loan Agreement and the Loan documents remain in full
force and effect, (ii) the Company has no defenses to its obligations under the Loan Agreement and the other Loan Documents, (iii) the Liens and security interests of the Administrative Agent under the Loan Documents secure all the Obligations,
continue in full force and effect and have the same priority as before this Amendment, and (iv) the Company has no claim against Administrative Agent, the Issuing Lender or any Lender arising from or in connection with the Loan Agreement or the
other Loan Documents, and the Company hereby releases and waives and discharges forever any such claims it may have against Administrative Agent, the Issuing Lender or any Lender arising from or in connection with this Amendment the other Amendment
Documents, the Loan Agreement or the other Loan Documents. This Amendment and each of the other Amendment Documents are a part of the Loan Documents. 
  
 10. Fees and Expenses. The Company shall promptly pay to Administrative Agent all fees, expenses and other amounts owing to Administrative Agent under the Loan
Agreement and the other Loan Documents upon demand, including, without limitation, all reasonable fees, costs and expenses incurred by Administrative Agent in connection with the preparation, negotiation, execution, and delivery of this Amendment.

  
 11. Governing Law. THIS AMENDMENT SHALL BE A CONTRACT MADE UNDER AND
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES. 
  
 12. Section Titles. Section captions used in this Amendment are for convenience only and shall not affect the construction of this
Amendment. 
  
 13. Counterparts; Facsimile Transmissions. This Amendment
may be executed in any number of counterparts and by the different parties hereto on separate counterparts, and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same
Amendment. Receipt of an executed signature page to this Amendment by facsimile or other electronic transmission, shall constitute effective delivery thereof. Electronic records of executed Amendment maintained by the Lenders shall be deemed to be
originals. 
  
 14. Incorporation By Reference. Administrative Agent, the
Required Lenders, and the Company hereby agree that all of the terms of the Loan Documents are incorporated in and made a part of this Amendment by this reference. 
  
 15. Notice—Oral Commitments Not Enforceable. Nothing contained in the following notice shall be deemed to limit or modify the
terms of the Loan Documents: 
  
 ORAL AGREEMENTS OR COMMITMENTS
TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE. TO PROTECT COMPANY AND EACH OTHER LOAN PARTY (BORROWER) AND ADMINISTRATIVE AGENT AND THE LENDERS
(CREDITOR) FROM 
  

 4 

 MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS THE COMPANY AND ADMINISTRATIVE AGENT AND THE
LENDERS REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT. 
  
 Company acknowledges that there are no other agreements between Administrative Agent,
Lenders, Company and the Loan Parties, oral or written, concerning the subject matter of the Loan Documents, as amended hereby, and that all prior agreements concerning the same subject matter, including any proposal or commitment letter, are merged
into the Loan Documents and thereby extinguished. 
  
 16.
Notice—Insurance. The following notice is given pursuant to Section 10 of the Collateral Protection Act set forth in Chapter 815 Section 180/1 of the Illinois Compiled Statutes (1996); nothing contained in such notice shall be deemed to
limit or modify the terms of the Loan Documents: 
  
 UNLESS
THE COMPANY PROVIDES THE ADMINISTRATIVE AGENT WITH EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY THIS AGREEMENT, THE ADMINISTRATIVE AGENT MAY PURCHASE INSURANCE AT THE COMPANY’S EXPENSE TO PROTECT THE ADMINISTRATIVE AGENT’S AND THE
LENDERS’ INTERESTS IN THE COLLATERAL AND THE REAL ESTATE COLLATERAL. THIS INSURANCE MAY, BUT NEED NOT, PROTECT ANY LOAN PARTY’S INTERESTS. THE COVERAGE THAT THE ADMINISTRATIVE AGENT PURCHASES MAY NOT PAY ANY CLAIM THAT IS MADE AGAINST ANY
LOAN PARTY IN CONNECTION WITH THE COLLATERAL AND THE REAL ESTATE COLLATERAL. THE COMPANY MAY LATER CANCEL ANY INSURANCE PURCHASED BY THE ADMINISTRATIVE AGENT, BUT ONLY AFTER PROVIDING THE ADMINISTRATIVE AGENT WITH EVIDENCE THAT THE COMPANY HAS
OBTAINED INSURANCE AS REQUIRED BY THIS AGREEMENT. IF THE ADMINISTRATIVE AGENT PURCHASES INSURANCE FOR THE COLLATERAL AND THE REAL ESTATE COLLATERAL, THE COMPANY WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING INTEREST AND ANY OTHER
CHARGES THAT MAY BE IMPOSED WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE MAY BE ADDED TO THE PRINCIPAL AMOUNT OF THE LOANS OWING HEREUNDER. THE COSTS OF
THE INSURANCE MAY BE MORE THAN THE COST OF THE INSURANCE THE LOAN PARTIES MAY BE ABLE TO OBTAIN ON THEIR OWN. 
  
 {remainder of page intentionally left blank; signature pages immediately follow} 
  

 5 

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

 

			
	HUTTIG BUILDING PRODUCTS, INC., as the Company
		
	By:	 	 /s/ Thomas S. McHugh

	Title:	 	Vice President-Finance, Treasurer and Chief Financial Officer
	
	LASALLE BANK NATIONAL ASSOCIATION, as Administrative Agent,
	as Issuing Lender and as a Lender
		
	By:	 	 /s/ Signature illegible

	Title:	 	Assistant Vice President
	
	GENERAL ELECTRIC CAPITAL CORPORATION, as a Lender
		
	By:	 	 /s/ Leanne C. Mannine

	Title:	 	 Duly Authorized Signatory

	
	HARRIS TRUST & SAVINGS BANK, as a Lender
		
	By:	 	 /s/ Signature illegible

	Title:	 	 Vice President

	
	NATIONAL CITY BANK OF THE MIDWEST, as a Lender
		
	By:	 	 /s/ Signature illegible

	Title:	 	 Vice President

	
	FIRST BANK, as a Lender
		
	By:	 	 /s/ Signature illegible

	Title:	 	 SVP

	
	CHARTER ONE BANK, N.A., as a Lender
		
	By:	 	 /s/ Signature illegible

	Title:	 	 Vice President

	
	FIFTH THIRD BANK (SOUTHERN INDIANA), as a Lender
		
	By:	 	 /s/ Signature illegible

	Title:	 	 Vice President

  

 6 

 REAFFIRMATION TO FIRST AMENDMENT TO LOAN AGREEMENT 
  
 This Reaffirmation to First Amendment to Loan Agreement is executed by
Huttig, Inc., a Delaware corporation (“Guarantor”) and is dated as of December 3, 2004 (this “Reaffirmation”). Guarantor acknowledges and consents to all changes, terms and provisions set forth in the foregoing First Amendment to
the Loan Agreement among the Company, Administrative Agent, and the Required Lenders of even date with this Reaffirmation (the “First Amendment”) and agrees that all such changes are in the best interests of the Company and Guarantor. In
consideration of the financial accommodations granted and which may hereafter be granted to the Company by Administrative Agent and the Lenders, in consideration of Administrative Agent’s, the Issuing Lender’s and the Lenders’
reliance on the Guaranty and Collateral Agreement, dated as of September 24, 2004 by and among the Company, Guarantor and the Administrative Agent (as amended, modified, restated or replaced from time to time, the “Guaranty and Collateral
Agreement”) and the other Loan Documents to which Guarantor is a party, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Guarantor, irrevocably and unconditionally reaffirms the
Guaranty and Collateral Agreement and the other Loan Documents to which it is a party and its continuing guarantee of the payment and performance of all current and future Obligations. Guarantor agrees that the validity and enforceability of the
Guaranty and Collateral Agreement and the other Loan Documents to which it is a party is not and shall not be affected in any way or manner by any of the changes, terms and provisions set forth in the First Amendment except for the modification
described in Section 4 of the First Amendment. Guarantor hereby consents to the provisions of Section 4 of the First Amendment. 
  
 Guarantor hereby represents and warrants to Administrative Agent, the Issuing Lender and each Lender as of the date hereof that (i) this Reaffirmation has
been duly authorized by the Guarantor’s board of directors, (ii) since September 24, 2004, Guarantor’s articles of incorporation and bylaws have not been amended, restated or otherwise modified, (iii) no consents are necessary from any
third Person for Guarantor’s execution, delivery or performance of this Reaffirmation which have not been obtained, (iv) this Reaffirmation and all other Loan Documents to which it is a party constitute the legal, valid and binding obligation
of Guarantor enforceable against Guarantor in accordance with its terms subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors’ rights generally and to general principles of equity, (v) except as set forth
in the disclosure schedules to the Loan Agreement and the other Loan Documents (including the supplements to Schedule 1, Schedule 4 and Schedule 6 to the Collateral and Guaranty Agreement attached to the First Amendment), the representations and
warranties in the Loan Agreement were true and correct when made and are true and correct in all material respects as of the date hereof (except to the extent stated to relate to a specific earlier date, in which case such representations and
warranties shall be true and correct as of such earlier date), and (vi) there exists no Unmatured Event of Default or Event of Default under the Loan Agreement (as amended by the First Amendment) and the Loan Documents. 
  
 Guarantor hereby acknowledges and confirms that (i) the Loan Documents are in
full force and effect, (ii) Guarantor has no defenses to its obligations under the Loan Documents, (iii) the Liens and security interests of the Administrative Agent under the Loan Documents secure all the Obligations, continue in full force and
effect and have the same priority as before the First Amendment, and (iv) Guarantor has no claim against Administrative Agent, the Issuing Lender or any Lender arising from or in connection with the Loan Agreement or the other Loan Documents, and
Guarantor hereby releases and waives and discharges forever any such claims it may have against Administrative Agent, the Issuing Lender or any Lender arising from or in connection with the Loan Agreement or the other Loan Documents. 
  
 {Reaffirmation continues on the next page; Signature is on the next page}

  

 7 

 Capitalized terms used in this Reaffirmation, but not defined herein, shall have the meanings set forth
in the First Amendment. 
  

			
	HUTTIG, INC.
		
	By:	 	 /s/ Thomas S. McHugh

	 	 	 Thomas S. McHugh

	Title:	 	 Vice President-Finance and
 Chief Financial Officer

  

 8 

 Exhibit A 
  

Documents and Requirements 
  

	 	1.	First Amendment to Loan Agreement. 

  

	 	2.	Reaffirmation to First Amendment to Loan Agreement. 

 Supplemental Information for Schedule 1 to Guaranty and Collateral Agreement 
  

			
	Grantor:	 	Huttig Building Products, Inc.
		
	Issuer:	 	Builder Resource Supply Corporation
		
	Pledged Note Description:	 	$1,137,237.71 note issued in connection with sale of the assets of Builder’s Resource location in or about Baltimore, MD.

  
 Supplemental
Information for Schedule 4 to Guaranty and Collateral Agreement 
  
 (effective upon the closing of the Texas Wholesale Building Materials Acquisition} 
  
 2115 Valley View Lane, Farmers Branch, Texas 75234 
  
 Supplemental Information for Schedule 6 to Guaranty and Collateral Agreement 
  
 (effective upon the closing of the Texas Wholesale Building Materials Acquisition} 
  
 The following bank accounts at JPMorgan Chase Bank, N.A/ Bank One, N.A. 
  
 Control Disbursements 633682471 
  
 Concentration Activity 645588302 
  
 Payroll
Account 645588302 
  
 Imprest 645588310 
  
 Oklahoma Deposits 632762639 
  
 Concentration Activity 639263714 
  
 Texas Deposits 639263714 
  
 Concentration Activity 632762639 
  
 Operating
Account 645588278 
  
 Concentration Activity 633682471 
  
 Texas Gold 1886449816 
  

 10Settlement Agreement dated January 19, 2005

 Exhibit 10.28 
  
 SETTLEMENT AGREEMENT 
  

THIS SETTLEMENT AGREEMENT (“Settlement Agreement”) is entered into as of this 19th day of January 2005 by and among The Rugby Group Ltd., f/k/a The Rugby Group PLC, an English company (“Rugby”), Rugby IPD Corp., a Delaware
corporation (“Rugby IPD”), and Huttig Building Products, Inc., a Delaware corporation (“Huttig”) (Rugby, Rugby IPD and Huttig being referred to herein separately as a “Party” and collectively as the
“Parties”). 
  
 WITNESSETH: 
  
 WHEREAS, Rugby Building Products (as defined herein) transferred to
Rugby IPD, on December 10, 1999, certain assets pursuant and subject to the terms of the Exchange Agreement (as defined herein); and 
  
 WHEREAS, Rugby contributed to Huttig, on the Closing Date (as defined herein), all of the outstanding common shares of Rugby’s then
wholly-owned subsidiary, Rugby USA (as defined herein), pursuant and subject to the terms of the Share Exchange Agreement (as defined herein); and 
  
 WHEREAS, Huttig has contended that Rugby and Rugby IPD are required to defend, indemnify and hold harmless Huttig from and against the Stanline
Asbestos Claims (as defined herein) pursuant to the Share Exchange Agreement and the Exchange Agreement, respectively; and 

 WHEREAS, Rugby and Rugby IPD have denied that they have any liability to defend, indemnify and
hold harmless Huttig from and against the Stanline Asbestos Claims; and 
  
 WHEREAS, Huttig has filed the Pending Litigation (as defined herein) to determine whether Rugby and Rugby IPD have an obligation to defend, indemnify and hold harmless Huttig from and against the Stanline Asbestos Claims; and

  
 WHEREAS, the Parties desire and intend to settle and
resolve their disputes regarding the Stanline Asbestos Claims and to dismiss the Pending Litigation in accordance with the terms of this Settlement Agreement; 
  

NOW, THEREFORE, in consideration of the mutual promises contained herein and other valuable consideration, the adequacy and sufficiency of which
are hereby acknowledged, the Parties hereby covenant and agree as follows: 
  
 1. Definitions. 
  
 The following terms shall
have the following meanings for purposes of this Settlement Agreement: 
  
 (a) “Claim” shall mean all claims, rights, duties, obligations, demands, actions, causes of action, suits, debts, liabilities and losses of any kind whatsoever and expressly includes all Defense Costs incident thereto. 

 

 - 2 - 

 (b) “Closed Stanline Asbestos Claims” shall mean the following Stanline Asbestos Claims that
were asserted against Huttig after the Closing Date and that Huttig has resolved by dismissal or settlement prior to the Settlement Date: (i) Peterson v. AcandS, Inc. et al., No. 2001-03187; (ii) Scott v. AcandS, Inc. et al.,
No. 2201-132665; (iii) Skelton v. AcandS, Inc. et al., No. 2002-050630; (iv) Basford v. AcandS, Inc. et al., No. 2002-049977; (v) Baker v. Asbestos Defendants, No. 315677; and (vi) Ferro v. Anderson, Rowe
& Buckley, Inc. et al., No. RG04138376. 
  
 (c)
“Closing Date” shall mean December 16, 1999, which was the date of the closing of the transactions contemplated by the Share Exchange Agreement. 
  
 (d) “Court” shall mean the Supreme Court of the State of New York, County of New York. 
  
 (e) “Crane” shall mean Crane Co., a corporation organized and
existing under the laws of Delaware with its principal place of business in Connecticut. 
  
 (f) “Defense Costs” shall include all amounts reasonably incurred and paid in the defense, compromise or satisfaction of a Claim, including those resulting from (i) the fees and the customary costs of
attorneys, investigators, consultants, experts and court reporters, but excluding internal costs such as employees’ salaries, and/or (ii) a judgment or a settlement. 
  

 - 3 - 

 (g) “Exchange Agreement” shall mean the Exchange Agreement between Rugby Building Products and
Rugby IPD dated as of December 10, 1999. 
  
 (h) “Future
Stanline Asbestos Claims” shall mean all Stanline Asbestos Claims, if any, that may be asserted after the Settlement Date. 
  
 (i) “Huttig” shall have the meaning set forth in the first paragraph of this Settlement Agreement. 
  
 (j) “Joint Defense Venture” shall mean the joint defense venture
established pursuant and subject to the terms of the Joint Defense Agreement. 
  
 (k) “Joint Defense Agreement” shall mean the Joint Defense Agreement among Rugby, Rugby IPD and Huttig executed simultaneously with this Settlement Agreement. 
  
 (l) “Parties” shall have the meaning set forth in the first
paragraph of this Settlement Agreement. 
  
 (m) “Pending
Litigation” shall mean the litigation pending in the Court styled Huttig Building Products, Inc. v. The Rugby Group Ltd., f/k/a The Rugby Group P.L.C. and Rugby IPD Corp., Index No.: 601515/02. 
  
 (n) “Renewed Litigation” shall mean the litigation that may be
commenced by any of the Parties pursuant to Section 6 of this Settlement Agreement. 
  

 - 4 - 

 (o) “Rugby” shall have the meaning set forth in the first paragraph of this Settlement
Agreement. 
  
 (p) “Rugby Building Products” shall mean
Rugby Building Products, Inc., which, as of the Closing Date, was a subsidiary of Rugby USA and was a corporation organized under the laws of Delaware with its principal place of business in Georgia. 
  
 (q) “Rugby IPD” shall have the meaning set forth in the first
paragraph of this Settlement Agreement. 
  
 (r) “Rugby
USA” shall mean Rugby USA, Inc., a corporation that, as of the Closing Date, was organized under the laws of the state of Georgia with its principal place of business in Georgia. 
  
 (s) “Settlement Agreement” shall have the meaning set forth in the first paragraph of this Settlement Agreement.

  
 (t) “Settlement Date” shall mean the date first
written above. 
  
 (u) “Share Exchange Agreement” shall
mean the Share Exchange Agreement among Rugby, Crane and Huttig dated October 19, 1999. 
  
 (v) “Stanline” shall mean Stanline, Inc., which, from approximately 1961 until approximately 1994, was a California corporation. 
  
 (w) “Stanline Asbestos Claims” shall mean all Claims by any person for personal injury or damages to property (i)
alleged by any such person to be 

  

 - 5 - 

 
attributable to Stanline’s manufacture, distribution or sale of a product allegedly containing asbestos and (ii) asserted, directly or indirectly,
against Huttig or any of its present or past subsidiary, predecessor or successor companies (including without limitation, Stanline, Rugby Building Products and Rugby USA). 
  
 (x) “Termination for Cause” shall mean the termination for cause of the Joint Defense Venture pursuant to Section
13 of the Joint Defense Agreement. 
  
 2. Settlement of Closed
Stanline Asbestos Claims. 
  
 Rugby shall pay Huttig the sum
of SIX HUNDRED NINE THOUSAND, FIVE HUNDRED EIGHTY-ONE DOLLARS, AND FORTY-SIX CENTS ($609,581.46), representing fifty percent (50%) of the Defense Costs of Huttig resulting from the Closed Stanline Asbestos Claims. Rugby shall make such payment
simultaneously with the execution of this Settlement Agreement pursuant to wire transfer instructions provided by Huttig. 
  
 3. Settlement of Future Stanline Asbestos Claims. 
  
 In connection with Future Stanline Asbestos Claims, the Parties are executing and delivering the Joint Defense Agreement simultaneously herewith and shall
fully perform all of their respective duties and obligations thereunder. 
  
 4. Dismissal of Pending Litigation. 
  
 Within five (5) business days of the receipt of the wire transfer described in Section 2, above, the Parties shall cause their respective counsel to execute and file 

  

 - 6 - 

 
with the Court a stipulation to dismiss without prejudice and to take such other steps as may be required to effect the dismissal without prejudice of the
Pending Litigation. All Parties shall bear their own costs and expenses incurred in the prosecution and/or defense of the Pending Litigation. 
  
 5. Mutual Releases. 
  
 Except in the event that this Settlement Agreement is rescinded pursuant to Section 6 hereof and/or for Claims otherwise arising under the terms of this
Settlement Agreement: 
  
 (a) Huttig hereby releases, discharges
and covenants not to sue each of Rugby and Rugby IPD, and all of Rugby’s and Rugby IPD’s stockholders, officers, directors, employees, agents, subsidiaries and affiliates, from, against and/or account of all Claims that (i) Huttig has or
shall have against either of Rugby or Rugby IPD, arising from, or in connection with, Stanline Asbestos Claims, including both Closed Stanline Asbestos Claims and Future Stanline Asbestos Claims, and/or (ii) were alleged or could have been alleged
in the Pending Litigation. 
  
 (b) Each of Rugby and Rugby IPD
hereby releases, discharges and covenants not to sue Huttig, its stockholders, officers, directors, employees, agents, subsidiaries and affiliates, from, against and/or on account of all Claims that (i) either Rugby or Rugby IPD has or shall have
against Huttig, arising from, or in 

  

 - 7 - 

 
connection with (i) Stanline Asbestos Claims, including both Closed Stanline Asbestos Claims and Future Stanline Asbestos Claims, and/or (ii) were alleged or
could have been alleged in the Pending Litigation. 
  
 6.
Rescission of Settlement Agreement. 
  
 In the event that a
Termination for Cause occurs, this Settlement Agreement shall be deemed to be rescinded without further action or notice, and the rights and obligations of the Parties shall be restored as they were immediately before the Settlement Date. In such
event: 
  
 (a) For the sixty (60) day period commencing on the
effective date of a Termination for Cause, Huttig shall have the exclusive right, and thereafter the non-exclusive right, at its option, to institute Renewed Litigation against Rugby and/or Rugby IPD to adjudicate, inter alia, whether, and to
what extent, Rugby and/or Rugby IPD have an obligation to defend, indemnify and hold harmless Huttig from and against the Stanline Asbestos Claims under the Share Exchange Agreement and/or the Exchange Agreement, respectively, and to obtain all
appropriate relief resulting from such adjudication. Rugby and/or Rugby IPD shall have the right to assert whatever defenses or counterclaims that they deem appropriate in response to Huttig’s filing of the Renewed Litigation. If the Renewed
Litigation names only Rugby as a defendant, Huttig shall file such lawsuit in a federal court of the State of New York. If the Renewed Litigation 

  

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names both Rugby and Rugby IPD and complete diversity does not exist between Huttig, on the one hand, and Rugby and Rugby IPD, on the other hand, the Renewed
Lawsuit shall be filed in the Court. Neither Rugby nor Rugby IPD is consenting that the Court is an appropriate forum for the resolution of such lawsuit in light of their position concerning the proper interpretation of Section 10.5 of the Share
Exchange Agreement, and Rugby and Rugby IPD are free to assert in any Renewed Litigation filed in the Court that a federal court of the State of New York is the only appropriate forum concerning the interpretation and enforcement of the provisions
of the Share Exchange Agreement. 
  
 (b) From and after the
expiration of the sixty (60) day period commencing on the effective date of a Termination for Cause and only if Huttig has not previously filed Renewed Litigation as provided in Subsection (a) hereof, Rugby then shall have the non-exclusive right,
at its option, to institute Renewed Litigation against Huttig to adjudicate, whether, and to what extent, Rugby and/or Rugby IPD have an obligation to defend, indemnify and hold harmless Huttig from and against the Stanline Asbestos Claims under the
Share Exchange Agreement and/or the Exchange Agreement, respectively, and to obtain all appropriate relief resulting from such adjudication. Huttig shall have the right to assert whatever defenses or counterclaims that it deems appropriate in
response to Rugby’s filing of the Renewed Litigation. Rugby shall file the Renewed Litigation in a federal 

  

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court of the State of New York. In the event that the federal court finds that Rugby IPD is an indispensable party or otherwise dismisses the lawsuit for
lack of subject matter jurisdiction, Rugby and/or Rugby IPD may then, at their option, file the Renewed Litigation in the Court. 
  
 (c) To the extent any Renewed Litigation adjudicates that Rugby and/or Rugby IPD have an obligation to defend, indemnify and hold harmless Huttig from and
against the Stanline Asbestos Claims under the Share Exchange Agreement and/or the Exchange Agreement, respectively, any amounts paid by Rugby to Huttig pursuant to Section 2 of this Settlement Agreement and pursuant to Section 2 of the Joint
Defense Agreement shall be set off against any damages that Huttig may be entitled to recover. 
  
 (d) To the extent any Renewed Litigation adjudicates that Rugby and Rugby IPD do not have an obligation to defend, indemnify and hold harmless Huttig from and against the Stanline Asbestos Claims under the Share
Exchange Agreement and the Exchange Agreement, respectively, Rugby shall be entitled to recover from Huttig any amounts paid by Rugby pursuant to Section 2 of this Settlement Agreement and Section 2 of the Joint Defense Agreement that should not
have been paid by Rugby and/or Rugby IPD. 
  
 (e) In any Renewed
Litigation, the Parties shall be entitled to raise any Claims or defenses that were, or could have been, raised in the Pending Litigation, 

  

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and this Settlement Agreement does not constitute a waiver or otherwise diminish any of the Parties’ rights with respect to the assertion of any such
Claims or defenses in the Renewed Litigation. 
  
 (f) In any
Renewed Litigation, the period of time applicable to any statute of limitation, or any other defense based on the passage of time, as to any Claims or defenses raised in the Pending Litigation shall be tolled for the period commencing on the date
the Pending Litigation was filed with the Court and ending 90 days after the effective date of a Termination for Cause. 
  
 (g) All discovery taken in the Pending Litigation shall be treated as if such discovery had been taken in the Renewed Litigation. 
  
 7. Representations and Warranties of Rugby. 
  
 Rugby represents and warrants to Huttig as follows: 
  
 (a) Rugby has all necessary corporate power and authority to execute and
deliver this Settlement Agreement, and this Settlement Agreement has been duly authorized and validly executed and delivered by Rugby and, assuming the due authorization, execution and delivery hereof by Huttig and Rugby IPD, constitutes a legal,
valid and binding obligation of Rugby, enforceable in accordance with its terms. 
  
 (b) Rugby has not assigned or transferred any of the Claims that are released pursuant to Section 5(b) hereof. 
  

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 (c) Rugby has received independent advice from its lawyers with respect to the advisability of executing
this Settlement Agreement. 
  
 (d) Rugby has no knowledge of any
Stanline Asbestos Claims that, as of the Settlement Date, are pending or have been asserted and not resolved. 
  
 8. Representations and Warranties of Rugby IPD. 
  
 Rugby IPD represents and warrants to Huttig as follows: 
  
 (a) Rugby IPD has all necessary corporate power and authority to execute and deliver this Settlement Agreement, and this Settlement Agreement has been
duly authorized and validly executed and delivered by Rugby IPD and, assuming the due authorization, execution and delivery hereof by Rugby and Huttig, constitutes a legal valid and binding obligation of Rugby IPD, enforceable in accordance with its
terms. 
  
 (b) Rugby IPD has not assigned or transferred any of
the Claims that are released pursuant to Section 5(b) hereof. 
  
 (c) Rugby IPD has received independent advice from its lawyers with respect to the advisability of executing this Settlement Agreement. 
  
 (d) Rugby IPD has no knowledge of any Stanline Asbestos Claims that, as of the Settlement Date, are pending or have been asserted and not resolved.

  

 - 12 - 

 9. Representations and Warranties of Huttig. 
  
 Huttig represents and warrants to each of Rugby and Rugby IPD as follows:

  
 (a) Huttig has all necessary corporate power and authority to
execute, deliver and perform this Settlement Agreement, and this Settlement Agreement has been duly authorized and validly executed and delivered by Huttig and, assuming the due authorization, execution and delivery hereof by Rugby and Rugby IPD,
constitutes a legal, valid and binding obligation of Huttig, enforceable in accordance with its terms. 
  
 (b) Huttig has not assigned or transferred any of the Claims that are released pursuant to Section 5(a) hereof. 
  
 (c) Huttig has received independent advice from its lawyers with respect to
the advisability of executing this Settlement Agreement. 
  
 (d)
The Closed Stanline Asbestos Claims constitute all of the Stanline Asbestos Claims that have been asserted against Huttig through and including the Settlement Date.  
  
 (e) The aggregate Defense Costs that Huttig has reasonably incurred and paid in connection with the defense of the Closed
Stanline Asbestos Claims amounts to ONE MILLION, TWO HUNDRED NINETEEN THOUSAND, ONE HUNDRED SIXTY-TWO DOLLARS, AND NINETY-THREE CENTS ($1,219,162.93). Huttig has provided Rugby, prior to the Settlement Date, with access to all records that Rugby has
reasonably requested in order to confirm this amount. 
  

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 (f) Huttig has no knowledge of any Stanline Asbestos Claims that, as of the Settlement Date, are pending
or have been asserted and not resolved. 
  
 10. Indemnity.

  
 (a) Rugby agrees to defend, indemnify and hold harmless
Huttig, and all of Huttig’s stockholders, officers, directors, employees, agents, subsidiaries and affiliates from and against all Claims arising out of, or connected with, any breach of (i) any representation and warranty given by Rugby under
Section 7 hereof or (ii) any covenant to be performed by Rugby under this Settlement Agreement. 
  
 (b) Rugby IPD agrees to defend, indemnify and hold harmless Huttig, and all of Huttig’s stockholders, officers, directors, employees, agents,
subsidiaries and affiliates from and against all Claims arising out of, or connected with, any breach of (i) any representation and warranty given by Rugby IPD under Section 8 hereof or (ii) any covenant to be performed by Rugby IPD under this
Settlement Agreement. 
  
 (c) Huttig agrees to defend, indemnify
and hold harmless each of Rugby and Rugby IPD and all of Rugby’s and Rugby IPD’s stockholders, officers, directors, employees, agents, subsidiaries and affiliates from and against all Claims arising out of, or connected with, any breach of
(i) any representation and warranty given by Huttig under Section 9 hereof or (ii) any covenant to be performed by Huttig under this Settlement Agreement. 
  

 - 14 - 

 11. No Admission of Liability. 
  
 The Parties understand and agree that this Settlement Agreement, any consideration given or accepted in connection with it
and the covenants made in it are all made, given and accepted in settlement and compromise of disputed Claims and are not an admission of liability in any respect by any of the Parties. Without limiting the generality of the foregoing, the Parties
expressly agree that the methodology used for determining the sum that Rugby is paying to Huttig pursuant to Section 2 hereof shall not constitute precedent, or be admissible as evidence, in connection with any future Claim that any of the Parties
may make including, without limitation, with respect to the application, construction or interpretation of Section 7.6 of the Share Exchange Agreement. 
  
 12. Confidentiality. 
  
 The Parties agree that neither they, nor anyone acting on their behalf, including their respective counsel, shall disclose to anyone the terms of, or
amounts paid, pursuant to this Settlement Agreement, neither specifically nor in general, qualitative or descriptive terms or in terms that state or suggest that the settlement was favorable to any of the Parties, and agree that the only comment
with respect to this settlement shall be that the matter was settled in a manner acceptable to all the Parties and in an amount that was not considered material in the context of the respective Parties and their affiliates taken as a whole, except

  

 - 15 - 

 
that this shall not preclude any of the Parties from disclosing information about the settlement as needed (i) to its affiliated entities or its accountants,
(ii) in connection with reports or filings with governmental agencies, or with financial or tax reporting or the enforcement of this Settlement Agreement or (iii) as validly required in court proceedings, provided that notice to the other Parties
shall be given before making a disclosure required in court proceedings. 
  
 13. Governing Law. 
  
 This Settlement Agreement and the rights and obligations of the Parties hereunder shall be governed and controlled by the laws of the State of New York without giving effect to that State’s conflict of law principles. 
  
 14. Dispute Resolution. 
  
 Other than disputes or circumstances that give rise to the filing of any
Renewed Litigation and disputes arising out of or relating to the Joint Defense Agreement, any dispute arising out of or relating to this Settlement Agreement shall be resolved by binding and final arbitration before a single arbitrator under the
International Arbitration Rules of the American Arbitration Association. The arbitrator shall be Robert F. Cusumano or, if he is unable or unwilling to serve, an arbitrator appointed in accordance with the International Arbitration Rules of the
American Arbitration Association. The place of the arbitration shall be New York, New York. 
  

 - 16 - 

 15. Successors and Assigns. 
  
 This Settlement Agreement shall inure to the benefit of, and be binding on, the successors and assigns of each of the
Parties; provided, however, that none of the Parties shall assign or delegate this Settlement Agreement or any of its rights or obligations hereunder without the prior written consent of the other Parties. Except as expressly set forth in this
Settlement Agreement, nothing in this Settlement Agreement shall confer upon any person not a Party hereto, or the legal representatives of such person, any rights or remedies (including, without limitation, rights or remedies as a third party
beneficiary) of any nature or kind whatsoever under or by reason of this Settlement Agreement. 
  
 16. Entire Agreement. 
  
 This Settlement Agreement and the Joint Defense Agreement constitute the entire agreement between and among the Parties, and anyone acting for, associated with or employed by any of the Parties, concerning the settlement of the
Parties’ Claims in relation to the Stanline Asbestos Claims and the dismissal of the Pending Litigation and supersede any prior discussions, agreements or understandings, and there are no promises, representations or agreements between and
among the Parties or anyone acting for, associated with or employed by any of the Parties other than as set forth in this Settlement Agreement and the Joint Defense Agreement. 
  

 - 17 - 

 17. Counterparts and Facsimile Signatures. 
  
 This Settlement Agreement may be executed in counterparts, each of which
shall be deemed an original, and all of which together shall be considered one and the same agreement, and any of the Parties’ original signature may be obtained through facsimile signature. 
  
 18. Modification or Waiver. 
  
 The provisions of this Settlement Agreement, including this Section
18, may be modified or waived only in writing signed by each of the Parties affected by the modification or waiver. No waiver with respect to any portion of this Settlement Agreement shall apply to any other portion of this Settlement Agreement, and
a waiver on one occasion shall not be deemed to be a waiver of the same or any other breach on a future occasion. No course of dealing by any of the Parties, and no failure, omission, delay or forbearance by any of the Parties in exercising any
rights or remedies, shall be deemed a waiver of any such rights or remedies or a modification of this Settlement Agreement. 
  
 19. Construction or Interpretation. 
  
 This Settlement Agreement is and shall be deemed jointly drafted and written by all of the Parties to it, and it shall not be construed or interpreted
against any of the Parties originating or preparing it. 
  

 - 18 - 

 20. Expenses. 
  
 Each Party each shall bear its expenses, including attorneys’ fees, incurred on its behalf in connection with the
negotiation, preparation, execution and performance of this Settlement Agreement. 
  
 21. Notices. 
  
 Any and
all notices or other communications required or permitted under this Settlement Agreement shall be given in writing and delivered in person or sent by certified or registered mail, postage prepaid, return receipt requested, or by overnight express
mail, or by facsimile or other electronic transmission to the address of such party set forth below. Any such notice shall be effective upon receipt (provided such receipt is before 5:00 p.m. at the recipient’s location), or three days after
placed in the mail, whichever is earlier. 
  
 If to Rugby:

  
 The Rugby Group Ltd. 
 Crown House 
 Rugby CV 212 DT 
 England 
 Attention: 
 Facsimile No.: 011-44-1788-546726 
  
 with a copy to: 
  
 Baker & McKenzie 
 130 East Randolph
Street 
 Suite 3500 
 Chicago,
Illinois 60601 
 Attention: Richard M. Franklin, Esq. 
 Facsimile No.: 312/861-2899 
  

 - 19 - 

 If to Rugby IPD: 
  
 Rugby IPD Corp. 
 1440 S. Priest Ave. 
 Suite #103 
 Tempe, AZ 85287 
  
 Attention:
Andrew Shier 
 Facsimile No.: 480/968-2448 
  
 with a copy to: 
  
 [attorney] 
  
 If to Huttig: 
  
 Huttig Building Products, Inc. 
 555 Maryville
University Drive, Suite 400 
 St. Louis, MO 63141 
 Attention: Nick H. Varsam, Esq. 
 Facsimile No.: 314/216-8793 
  
 with a copy to: 
  
 Kirkpatrick and Lockhart LLP 
 Henry W. Oliver Building 
 535 Smithfield
Street 
 Pittsburgh, PA 15222 
 Attention: Michael G. Zanic, Esq. 
 Facsimile No.: 412/355-6501 
  
 and: 
  
 Post Kirby Noonan & Sweat LLP 
 America
Plaza 
 600 West Broadway, 11th Floor 
 San Diego, California 92101 
 Attention: James R. Lance, Esq. 
 Facsimile No.: 619/231-9593 
  
 Any Party may, by notice so delivered, change its address for notice purposes hereunder. 
  

 - 20 - 

 IN WITNESS WHEREOF, each of the Parties, by its duly authorized officer, has executed this
Settlement Agreement as of the date first written above. 
  

	
	Rugby Group Ltd.
	
	 /s/ Michael L. Collins

	By: Michael L. Collins
	Its: Director
	
	Rugby IPD Corp.
	
	 /s/ Randy Shier

	By: Randy Shier
	Its: President
	
	Huttig Building Products, Inc.
	
	 /s/ Nick H. Varsam

	By: Nick H. Varsam
	Its: Vice President-General Counsel

  

 - 21 -

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