Document:

EXHIBIT 10.1

[EXECUTION

COPY]

 

AMENDMENT NO. 8 AND WAIVER

to

LOAN AND SECURITY AGREEMENT

 

 

THIS AMENDMENT

NO. 8 AND WAIVER dated as of November 12, 2002 (this “Amendment”) is made by

SYRATECH CORPORATION, a Delaware corporation, TOWLE MANUFACTURING COMPANY, a

Delaware corporation, LEONARD FLORENCE ASSOCIATES, INC., a Massachusetts

corporation, WALLACE INTERNATIONAL SILVERSMITHS, INC., a Delaware corporation,

RAUCH INDUSTRIES, INC., a North Carolina corporation, ROCHARD, INC., a New York

corporation, HOLIDAY PRODUCTS, INC., a North Carolina corporation, FARBERWARE

INC., a Delaware corporation, SILVESTRI, INC., a Delaware corporation, each

financial institution identified as a “Lender” (the “Lenders”) on the signature

pages hereof and BANK OF AMERICA, N.A., a national banking association, as

administrative agent for the Lenders (the “Administrative Agent”).

 

Preliminary Statements

 

The Borrowers, the Lenders party thereto from time to time, and the

Administrative Agent are parties to the Loan and Security Agreement dated as of

April 16, 1997, as amended by Amendment No. 1 dated as of July 31, 1997,

Amendment No. 2 dated as of December 31, 1997, Amendment No. 3 dated as of

March 30, 1998, Amendment No. 4 and Consent dated as of March 26, 1999,

Amendment No. 5 dated as of March 26, 2001. Amendment No. 6 dated as of August

13, 2001 and Amendment No. 7 dated as of March 22, 2002 (as so amended, the

“Loan Agreement”; terms defined in the Loan Agreement and not otherwise defined

herein being used herein as therein defined).

 

The Borrowers have requested that the Administrative Agent and the

Lenders waive certain provisions of the Loan Agreement and the Lenders and the

Administrative Agent have agreed to do so, all upon and subject to all of the

terms, conditions and provisions hereof.

 

NOW, THEREFORE, in consideration of the Loan Agreement, the Loans made

by the Lenders and outstanding thereunder, the mutual promises hereinafter set

forth and other good and valuable consideration the receipt and sufficiency of

which are hereby acknowledged, the parties hereto hereby agree as follows:

 

Section 1.                                            Amendment

to Loan Agreement.  The Loan

Agreement is hereby amended, subject to the provisions of Section 3 of this

Amendment, by:

 

(a)                                  amending Section 1.1 Definitions

thereof by amending the definition “Revolving Credit Facility” in its entirety

to read as follows:

 

Revolving Credit Facility means the principal sum of $95,000,000,

as the same may be reduced from time to time pursuant to the provisions of Section 2.5.

 

(b)                                 amending

Section 11.5 Capital Expenditures in its entirety to read as follows:

 

Section 11.5                                Capital

Expenditures. Make or incur any Capital Expenditures; provided, however,

that the Borrowers may make or incur Capital Expenditures in an aggregate

amount not to exceed $3,750,000 in the Fiscal Year ending December 31, 2002 and

$5,000,000 in any other Fiscal Year.

 

 

(c)                                  amending

Section 11.4(n) Minimum Availability in its entirety to read as follows:

 

Section 11.14                          Minimum

Availability.  Permit Revolving

Credit Availability at any time to be less than $20,000,000, except that during

the period February 1 through March 31 of any year, Revolving Credit

Availability shall not be less than $25,000,000.

 

Section 2.                                            Waiver.  Subject to the provisions of Section 3, the

Lenders hereby waive compliance and the consequences of noncompliance by the

Borrowers with the provisions of Sections 11.1(b)(iii) and (iv) of the Loan

Agreement.

 

Section 3.                                            Effectiveness

of Amendment.  Section 1 shall

become effective on November 15, 2002 and Section 2 shall become effective as

of the date hereof on the first date (the “Amendment Effective Date”) on which

the Administrative Agent shall have received (a) from the Borrowers, a fee in

the amount of $118,750 in consideration of the waiver effected hereby, to be

shared ratably among the Lenders in accordance with their respective

Commitments as reflected on Annex A to the Loan Agreement, which fee shall be

fully earned when paid and not be subject to refund or rebate whatsoever, and

(b) each of the following, in form and substance satisfactory to the

Administrative Agent:

 

(i)                                     eight copies of this Amendment duly

executed and delivered by the Borrowers, the Required Lenders and the

Administrative Agent;

 

(ii)                                  a certificate of the secretary or other

Authorized Officer of each of the Borrowers having attached thereto the

organizational documents of such Borrower as in effect on the Amendment

Effective Date (or containing the certification of such secretary or Authorized

Officer that no amendment or modification of such organizational documents has

become effective since the last date on which such organizational documents

were delivered to the Administrative Agent pursuant to the Loan Agreement), all

corporate action, including shareholders’ approval, if necessary, taken by such

Borrower and/or its shareholders members to authorize the execution, delivery

and performance of this Amendment, and to the further effect that the

incumbency certificate last delivered to the Lenders under the Loan Agreement remains

in effect, unchanged;

 

(iii)                               a certificate of an Authorized Officer of

Syratech stating that, to the best of his knowledge and based on an examination

reasonably believed by him to be sufficient to enable him to make an informed

statement after giving effect to this Amendment,

 

(A)                              all of the representations and warranties

made or deemed to be made under the Loan Agreement are true and correct as of

the date hereof, and

 

(B)                                no Default or Event of Default has

occurred and is continuing as of the date hereof,

and the Administrative Agent shall be satisfied as to the truth and accuracy

thereof; and

 

(iv)                              such other documents and instruments as

any Lender, acting through the Administrative Agent, may reasonably request.

 

Section 4.                                            Representations and Warranties. 

Each of the Borrowers hereby makes the following representations and

warranties to the Administrative Agent and to each Lender, which

representations and warranties shall survive the delivery of this Amendment and

the making of additional Loans under the Loan Agreement as amended hereby:

 

(a)                                  Authorization of Agreements. 

Such Borrower has the right and power, and has taken all necessary

action to authorize it, to execute, deliver and perform this Amendment and each

other instrument and agreement contemplated hereby to which it is a party in

accordance with their respective terms. 

This Amendment and each other instrument and agreement contemplated

hereby to which it is a party have been

 

2

 

duly executed and

delivered by the Authorized Officers of such Borrower and each is, or each when

executed and delivered in accordance with this Amendment will be, a legal,

valid and binding obligation of such Borrower, enforceable in accordance with

its terms.

 

(b)                                 Compliance of Agreements with Laws. 

The execution, delivery and performance of this Amendment and each other

instrument and agreement contemplated hereby to which such Borrower is a party

in accordance with their respective terms do not and will not, by the passage

of time, the giving of notice or otherwise,

 

(i)                                     require any Governmental Approval or

violate any Applicable Law relating to such Borrower or any Subsidiary of such

Borrower,

 

(ii)                                  conflict with, result in a breach of or

constitute a default under (A) the organizational documents of such Borrower or

any of its Subsidiaries, (B) any indenture, agreement or other instrument to

which such Borrower or any of its Subsidiaries is a party or by which any of

its property may be bound or (C) any Governmental Approval relating to such

Borrower or any of its Subsidiaries, or

 

(iii)                               result in or require the creation or imposition of any

Lien upon or with respect to any property now owned or hereafter acquired by

such Borrower or any of its Subsidiaries.

 

Section 5.                                            Expenses.  The Borrowers

agree to pay or reimburse on demand all costs and expenses, including, without

limitation, reasonable fees and disbursements of counsel, incurred by the

Administrative Agent in connection with the negotiation, preparation, execution

and delivery of this Amendment.

 

Section 6.                                            Effect of Amendment. 

From and after the Amendment Effective Date, all references in the Loan

Agreement and in any other Loan Document to “this Agreement,” “the Loan

Agreement,” “hereunder,” “hereof” and words of like import referring to the

Loan Agreement, shall mean and be references to the Loan Agreement as amended

by this Amendment.  Except as expressly

amended hereby, the Loan Agreement and all terms, conditions and provisions

thereof remain in full force and effect and are hereby ratified and

confirmed.  The execution, delivery and

effectiveness of this Amendment shall not, except as expressly provided herein,

operate as a waiver of any right, power or remedy of the Lender under any of

the Loan Documents, nor constitute a waiver of any provision of any of the Loan

Documents.

 

Section 7.                                            Counterpart Execution; Governing Law.

 

(a)                                  Execution in Counterparts. 

This 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 to be an original and all of which taken

together shall constitute but one and the same agreement.  Delivery of an executed signature page of

any party hereto by facsimile transmission shall be effective as delivery of a

manually executed counterpart thereof.

 

(b)                                 Governing Law. 

This Amendment shall be governed by and construed in accordance with the

laws of the State of Georgia without giving effect to the conflicts of laws

principles thereof.

 

3

 

IN WITNESS WHEREOF, the

parties hereto have caused this Amendment to be executed by their duly

authorized officers in several counterparts all as of the day and year first written

above.

 

	

   

  	

  BORROWERS:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  SYRATECH CORPORATION

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Gregory W. Hunt

  
	

   

  	

   

  	

  Name:  Gregory W. Hunt

  
	

   

  	

   

  	

  Title:    Senior Vice

  President, Chief Financial

  Officer and Treasurer

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  TOWLE MANUFACTURING COMPANY

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Gregory W. Hunt

  
	

   

  	

   

  	

  Name:  Gregory W. Hunt

  
	

   

  	

   

  	

  Title:    Senior Vice

  President, Chief Financial

  Officer and Treasurer

  
	

   

  	

   

  	

   

  
	

   

  	

  LEONARD FLORENCE ASSOCIATES, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By: 

  	

  /s/ Gregory W. Hunt

  
	

   

  	

   

  	

  Name:  Gregory W. Hunt

  
	

   

  	

   

  	

  Title:    Senior Vice

  President, Chief Financial

  Officer and Treasurer

  
	

   

  	

   

  	

   

  
	

   

  	

  WALLACE INTERNATIONAL SILVERSMITHS, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By: 

  	

  /s/ Gregory W. Hunt

  
	

   

  	

   

  	

  Name:  Gregory W. Hunt

  
	

   

  	

   

  	

  Title:    Senior Vice

  President, Chief Financial

  Officer and Treasurer

  
	

   

  	

   

  	

   

  
	

   

  	

  RAUCH INDUSTRIES, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Gregory W. Hunt

  
	

   

  	

   

  	

  Name:  Gregory W. Hunt

  
	

   

  	

   

  	

  Title:    Senior Vice

  President, Chief Financial

  Officer and Treasurer

  
							

 

4

 

	

   

  	

  HOLIDAY PRODUCTS, INC.

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Gregory W. Hunt

  
	

   

  	

   

  	

  Name:  Gregory W. Hunt

  
	

   

  	

   

  	

  Title:    Senior Vice

  President, Chief Financial

  Officer and Treasurer

  
	

   

  	

   

  	

   

  
	

   

  	

  ROCHARD, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Faye A. Florence

  
	

   

  	

   

  	

  Name:  Faye A. Florence

  
	

   

  	

   

  	

  Title:    Vice

  President, General Counsel and

  Secretary

  
	

   

  	

   

  	

   

  
	

   

  	

  FARBERWARE INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Gregory W. Hunt

  
	

   

  	

   

  	

  Name:  Gregory W. Hunt

  
	

   

  	

   

  	

  Title:    Senior Vice

  President, Chief Financial

  Officer and Treasurer

  
	

   

  	

   

  
	

   

  	

  SILVESTRI, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Gregory W. Hunt

  
	

   

  	

   

  	

  Name:  Gregory W. Hunt

  
	

   

  	

   

  	

  Title:    Senior Vice

  President, Chief Financial

  Officer and Treasurer

  
						

 

5

 

	

   

  	

  ADMINISTRATIVE AGENT:

  
	

   

  	

   

  
	

   

  	

  BANK OF AMERICA, N.A.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Andrew A. Doherty

  
	

   

  	

   

  	

  Andrew A. Doherty

  Vice President

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  LENDERS:

  
	

   

  	

   

  
	

   

  	

  BANK OF AMERICA, N.A.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Andrew A. Doherty

  
	

   

  	

   

  	

  Andrew A. Doherty

  Vice President

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  FLEET CAPITAL CORPORATION

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Matthew T. O’Keefe

  
	

   

  	

   

  	

  Name:  Matthew T. O’Keefe

  
	

   

  	

   

  	

  Title:    Senior Vice

  President

  
						

 

6

 

	

   

  	

  COMERICA BANK

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Timothy C. Griffin

  
	

   

  	

   

  	

  Name:  Timothy C. Griffin

  Title:    Vice President

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  PNC BANK, NATIONAL ASSOCIATION

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Tara-Clare Wilde

  
	

   

  	

   

  	

  Name: Tara-Clare Wilde

  Title:  Assistant Vice President

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  CONGRESS FINANCIAL CORPORATION

  
	

   

  	

  (SOUTHERN)

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Morris P. Holloway

  
	

   

  	

   

  	

  Name: Morris P. Holloway

  
	

   

  	

   

  	

  Title: Senior Vice President

  
						

 

7Exhibit

4.6

 

 

ARTICLES OF

AMENDMENT

OF THE

ARTICLES OF

INCORPORATION

OF

DAW TECHNOLOGIES,

INC.

 

 

Pursuant to the

provisions of the Utah Revised Business Corporation Act, the undersigned

corporation does hereby adopt the following Articles of Amendment to its

Articles of Incorporation:

 

1.             The name of the corporation is Daw Technologies, Inc

(the “Company”).

 

2.             The Articles of Incorporation of the Company are hereby

amended as follows:

 

The existing Article III,

as previously amended, is hereby amended by deleting the existing subsection

C.5(a)(ii) in its entirety and replacing it with the following:

 

(ii)   Automatic Conversion.   Subject to the provisions of this

paragraph, all outstanding shares of Series A Preferred Stock for which

conversion notices have not previously been received or for which redemption

has not been made or required hereunder shall be automatically converted on the

earlier to occur of:  (A) December 31,

2002, at the then applicable Conversion Price (as defined herein), and (B) the

Trading Day, if any, immediately following a period of thirty consecutive

Trading Days (each of which must occur following the Effective Date) during

each of which the Per Share Market Value (as defined in Section III.C.7) shall

exceed 200% of the Fixed Conversion Price (as defined in Section

III.C.5(c)(i)), at the Fixed Conversion Price (as adjusted hereunder).  The conversion contemplated by this Section

III.C.5(a)(ii) shall not occur without the consent of the Holder at such time

as (a)(1) an Underlying Shares Registration Statement is not then effective or

(2) the Holder is not permitted to resell Underlying Shares pursuant to Rule

144(k) promulgated under the Securities Act, without volume restrictions, as

evidenced by an opinion letter of counsel acceptable to the Holder and the

transfer agent for the Common Stock; (b) there are not sufficient shares of

Common Stock authorized and reserved for issuance upon such conversion; or (c)

the Corporation shall have defaulted in any material respect on its covenants

and obligations hereunder or under the Purchase Agreement or Registration

Rights Agreement (each as defined in Section III.C.7).  Notwithstanding the foregoing, the date on

which an automatic conversion would otherwise occur under this subsection shall

be extended (on a day-for-day basis) for any Trading Days after the Effective

Date that a Holder is unable to resell Underlying Shares under an Underlying

Shares Registration Statement due to (a) the Common Stock not

 

1

 

being listed or quoted

for trading on the NASDAQ or any Subsequent Market; (b) the failure of such

Underlying Shares Registration Statement to be declared effective, or if so

declared, to remain effective during the Effectiveness Period (as defined in

the Registration Rights Agreement) as to all Underlying Shares, or (c) the

suspension of the Holder’s right to sell Underlying Shares thereunder.  The provisions of Sections 5(a)(iii)(A) and

(B) shall not apply to any automatic conversion pursuant to this Section

5(a)(ii).

 

3.             The foregoing amendment to Article III of the Articles

of Incorporation was adopted by the Board of Directors of the Company by

unanimous written consent on September 17, 2002, and by the holders of the

outstanding shares of the Company’s 3% Series A Convertible Preferred Stock

(the “Series A Preferred”) by unanimous written consent on September 17, 2002.

 

6.           The foregoing amendment to Article III of the Articles of

Incorporation was approved by the holders of the Series A Preferred as follows:

 

a.             The designation of the voting group which voted on the

amendment was Series A Preferred; the number of shares of Series A Preferred

outstanding and the number of votes entitled to be cast by the holders of the

Series A Preferred voting group was 411; and

 

b.             The total number of votes cast for the amendment by the

Series A Preferred voting group was 411; and the total number of votes cast

against the amendment by the Series A Preferred voting group was 0.

 

 

DATED the 18th day of September,

2002.

 

	

   

  	

   

  	

  DAW TECHNOLOGIES, INC.,

  
	

   

  	

   

  	

  a Utah corporation

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By: 

  	

  s/ Randy K.

  Johnson

  	

   

  
	

   

  	

   

  	

   

  	

  Randy K.

  Johnson, Vice President,

  
	

   

  	

   

  	

   

  	

  Secretary and

  General Counsel

  

 

 

ADDRESS TO WHICH DIVISION MAY SEND

COPY UPON COMPLETION OF FILING

 

Randy K. Johnson

DAW TECHNOLOGIES, INC.

2700 South 900 West

Salt Lake City, UT 84119

 

2

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