Document:

Second Amendment to Credit and Security Agreement, dated as of March 9, 2007

 EXHIBIT 10.3 
 SECOND AMENDMENT TO 
 CREDIT AND SECURITY AGREEMENT 
 THIS SECOND AMENDMENT TO CREDIT AND SECURITY AGREEMENT (this “Amendment”) is made as of the
         day of                     , 2007 by and among MTC TECHNOLOGIES, INC., a Delaware
corporation (“MTCT”), MTC TECHNOLOGIES, INC. (formerly known as MODERN TECHNOLOGIES CORP.), an Ohio corporation (together with MTCT, collectively, “Borrowers” and, individually, each a “Borrower”);
the financial institutions listed on Schedule 1 to the Credit Agreement (collectively, the “Banks” and, individually, each a “Bank”); NATIONAL CITY BANK, as lead arranger and administrative agent for the
Banks (the “Agent”); BRANCH BANKING AND TRUST COMPANY, as syndication agent (the “Syndication Agent”); KEYBANK NATIONAL ASSOCIATION, as co-documentation agent (“KeyBank”); and FIFTH THIRD BANK, as
co-documentation agent (“Fifth Third Bank”; KeyBank and Fifth Third Bank, collectively, the “Co-Documentation Agents”), under the following circumstances: 
 A. The Borrowers, the Banks, the Agent, the Syndication Agent and the Co-Documentation Agents are parties to a Credit and Security Agreement made
effective as of April 21, 2005, and amended by the First Amendment to Credit and Security Agreement made effective as of October 27, 2006 (as the same may be amended, supplemented, modified and/or restated from time to time, the
“Credit Agreement”). Unless otherwise defined herein, all capitalized terms used herein shall have the respective meanings ascribed to those terms by the Credit Agreement. 
 B. The Borrowers, the Banks, the Agent, the Syndication Agent and the Co-Documentation Agents now desire to amend the Credit Agreement for the reasons
and upon the terms and conditions hereinafter set forth. 
 NOW, THEREFORE, the Borrowers, the Banks, the Agent, the Syndication Agent and
the Co-Documentation Agents agree as follows: 
 Section 1. Amendment to Credit Agreement. 
 (a) Amendment to Section 1.1. The definition of “Consolidated Fixed Charges” is hereby amended in its entirety to read as follows.

 “Consolidated Fixed Charges” shall mean, for any period, with respect to MTCT, on a Consolidated basis and in
accordance with GAAP, without duplication, the aggregate of (a) Consolidated Interest Expense, (b) scheduled principal payments on Consolidated Funded Indebtedness due within the current period, (c) lease payments on Consolidated
Rental Obligations for such period, (d) Consolidated Capital Expenditures (excluding capital expenditures that are financed other than by the Loans), and (d) all Capital Distributions by any Company. 

 (b) Amendment to Section 5.7(b). Section 5.7(b) of the Credit Agreement (captioned
Fixed Coverage Charge) is hereby amended in its entirety to read as follows: 
 Borrowers shall not suffer or permit at
any time the Fixed Charge Coverage Ratio to be less than 1.20 to 1.00. 
 (c) Amendment to Section 5.19 of the Credit Agreement.
Section 5.19 of the Credit Agreement (captioned Restricted Payments) is hereby amended in its entirety to read as follows: 
 No Company shall make or commit itself to pay any Restricted Payment at any time. Notwithstanding anything contained in the foregoing however, the repurchase by MTCT of shares of common stock of MTCT having a fair
market value at the time of such repurchase of no more than $20,000,000 by no later than December 31, 2007 shall not constitute a Restricted Payment for the purposes of this Section 5.19. 
 Section 2. Covenant Violation. The Banks, the Agent, the Syndication Agent and the Co-Documentation Agents hereby agree that the failure of
the Borrowers to be in compliance with the Fixed Charge Coverage Ratio set forth in Section 5.7(b) of the Credit Agreement for the four fiscal quarters of MTCT ending on December 31, 2006 is hereby waived and shall not constitute an Event
of Default. Such waiver shall not constitute a waiver of any other Default or Event of Default now or hereafter continuing under the Credit Agreement. 
 Section 3. Effective Date. This Amendment shall take effect immediately upon Agent’s receipt of an original counterpart of this Amendment and the attached Confirmation of Guarantees executed by all
parties hereto and thereto. 
 (a) The Agent’s receipt of an original counterpart of this Amendment executed by all parties hereto;

 (b) The Agent’s receipt of the original Confirmation of Guarantees executed by Aerospace Integration Corporation, Amcomp Corporation,
Command Technologies, Inc., International Consultants, Inc., Manufacturing Technology, Inc., Onboard Software, Inc., and Vitronics Inc.; and 
 (c) Receipt by the Agent of all out-of-pocket costs and expenses incurred in making the Loans and entering into this Agreement (including, without limitation, all reasonable attorney fees, audit fees and filing fees incurred by the Agent);
and 
 (d) With respect to MTC Technologies Services, Inc., an Ohio corporation (“MTC Services”), (i) a Guaranty of
Payment of all of the Debt by MTC Services, such agreement to be in form and substance acceptable to the Agent, (ii) a Pledge Agreement executed by the appropriate Borrower of all of the share certificates (or other evidence of equity) of MTC
Services, and (iii) any such Security Documents, corporate governance and authorization documents, and an opinion of counsel, as may be deemed necessary or advisable by the Agent. Borrowers hereby represent and warrant to the Banks, the Agent,
the Syndication Agent and the Co-Documentation Agents 

  

 2 

 
that MTC Services has no location where any Collateral of MTC Services consisting of tangible personal property having an aggregate value of $1,000,000 or
greater is stored or maintained that is not owned by MTC Services or a Borrower. 
 Section 4. Costs and Expenses. The Borrowers
hereby agree to reimburse the Banks, the Agent, the Syndication Agent and the Co-Documentation Agents for all costs and expenses incurred by Agent and Banks in connection with this Amendment and the transactions contemplated hereby, including their
respective legal fees and expenses. 
 Section 5. Miscellaneous. The Borrowers, the Banks, the Agent, the Syndication Agent and
the Co-Documentation Agents hereby agree that: 
 (a) The Credit Agreement, as amended hereby, and the other Loan Documents remain otherwise
unmodified and in full force and effect. 
 (b) Each Borrower hereby represents and warrants the Banks, the Agent, the Syndication Agent and
the Co-Documentation Agents that as of the date hereof (i) no Default or Event of Default has occurred and is continuing (ii) the representations and warranties of such Borrower in the Credit Agreement and the other Loan Documents are true
and correct in all material respects as if made on the date hereof (except to the extent that any expressly relates to an earlier date), and (iii) such Borrower has no cause of action, at law or in equity, against the Banks, the Agent, the
Syndication Agent or the Co-Documentation Agents, including, without limitation, any offset, counterclaim or defense with respect to the Notes or the Loans evidenced thereby or any Loan Document. 
 (c) This Amendment is limited precisely as written and shall not (i) constitute a consent under or waiver or modification of any other term or
condition of the Credit Agreement, the other Loan Documents or any other agreements, instruments or documents referred to therein, or (ii) prejudice or otherwise affect any right or privilege which the Banks, the Agent, the Syndication Agent
and the Co-Documentation Agents now have or may have in the future under the Credit Agreement, the other Loan Documents or under any of the other agreements, documents or instruments therein. 
 (d) This Amendment may be executed in any one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. 
 (e) This Amendment shall be governed by, and construed and enforced in accordance with, the laws of the State
of Ohio. 
 (Balance of Page Intentionally Omitted) 
  

 3 

 IN WITNESS WHEREOF, the parties hereto have caused a counterpart of this Amendment to be duly executed
and delivered as of the date first above written. 
  

					
	 Address:
	  	4032 Linden Avenue	  	MTC TECHNOLOGIES, INC., a Delaware
		  	Dayton, OH 45432	  	corporation
		  	Attention: Michael Gearhardt	  	
		  	Fax: (937) 252-8240	  	
		  		  	By: /s/ Michael
Gearhardt                                       
                 
		  		  	Name: Michael Gearhardt
		  		  	Title: Senior VP and Chief Financial Officer
			
	 Address:
	  	4032 Linden Avenue	  	MTC TECHNOLOGIES, INC., formerly
		  	Dayton, OH 45432	  	known as MODERN TECHNOLOGIES CORP.,
		  	Attention: Michael Gearhardt	  	an Ohio corporation
		  	Fax: (937) 252-8240	  	
			
		  		  	By: /s/ Michael
Gearhardt                                       
                 
		  		  	Name: Michael Gearhardt
		  		  	Title: Senior VP and Chief Financial Officer
			
	 Address:
	  	629 Euclid Avenue	  	NATIONAL CITY BANK
		  	LOC. 01-3034	  	as Agent and as a Bank
		  	Cleveland, Ohio 44114	  	
		  	Attention: Capital Markets Division	  	
		  	- Loan Syndications	  	By: /s/ Neal J.
Hinker                                       
                         
		  	Fax: (216) 222-7079	  	Name: Neal J. Hinker
		  		  	Title: Sr. Vice President

 [SIGNATURES OF BANKS CONTINUE ON NEXT PAGE] 
  

 4 

					
	 Address:
	  	200 West Second Street	  	BRANCH BANKING AND TRUST
		  	16th Floor	  	COMPANY, as Syndication Agent and as a
		  	Winston-Salem, NC 27101	  	Bank
		  	Attention: Robert Bass	  	
		  	Fax: (336) 733-2740	  	By: /s/ Roberts A.
Bass                                        
                
		  		  	Name: Roberts A. Bass
		  		  	Title: Senior Vice President
			
	 Address:
	  	34 North Main Street	  	KEYBANK NATIONAL ASSOCIATION,
		  	Dayton OH 45402	  	as Co-Documentation Agent and as a Bank
		  	Attention: Joseph Zehenny	  	
		  	Fax: (937) 586-7695	  	By: /s/ Joseph
Zehenny                                       
                   
		  		  	Name: Joseph Zehenny
		  		  	Title: Senior Vice President
			
	 Address:
	  	110 North Main Street	  	FIFTH THIRD BANK,
		  	Dayton, OH 45402	  	as Co-Documentation Agent and as a Bank
		  	Attention: Michael Lopez	  	
		  	Fax: (937) 227-3027	  	By: /s/ Michael
Lopez                                       
                     
		  		  	Name: Michael Lopez
		  		  	Title: Assistant Vice President

 [SIGNATURES OF BANKS CONTINUE ON NEXT PAGE] 
  

 5 

					
	 Address:
	  	40 North Main Street	  	JPMORGAN CHASE BANK, N.A
		  	Dayton, OH 45423	  	
		  	Attention: Lisa Huelskamp	  	By: /s/ John B. Middleberg                    
		  	Fax: (937) 449-4885	  	Name: John B. Middleberg
		  		  	Title: SVP
			
	 Address:
	  	9100 Centre Pointe Drive	  	COMERICA BANK
		  	Suite 240	  	
		  	West Chester, OH 45069	  	By: /s/ Harold
Dalton                            
		  	Attention: Steven T. Siple	  	Name: Harold Dalton
		  	Fax: (513) 942-4904	  	Title: V.P.
			
	 Address:
	  	201 East Fifth Street	  	PNC BANK, N.A.
		  	Cincinnati, OH 45202	  	
		  	Attention: Kristina McAneny	  	By: /s/ Christopher Belletti                    
		  	Fax: (513) 651-8952	  	Name: Christopher Belletti
		  		  	Title: VP

  

 6 

 CONFIRMATION OF GUARANTY 
 The undersigned, AMCOMP CORPORATION, a California corporation (“Amcomp”), COMMAND TECHNOLOGIES, INC., a Virginia corporation
(“Command”), INTERNATIONAL CONSULTANTS, INC., an Ohio corporation (“ICI”), VITRONICS INC., a New Jersey corporation (“Vitronics”), MANUFACTURING TECHNOLOGY, INC., a Florida corporation
(“MTI”), ONBOARD SOFTWARE, INC., a Texas corporation (“Onboard”), and AEROSPACE INTEGRATION CORPORATION, a Florida corporation (“AIC”; collectively with Amcomp, Command, ICI, Vitronics, MTI and Onboard, the
“Guarantors”), jointly and severally hereby: 
 (A) Acknowledge that MTC TECHNOLOGIES, INC., a Delaware corporation
(“MTCT”), MTC TECHNOLOGIES, INC. (formerly known as MODERN TECHNOLOGIES CORP.), an Ohio corporation (together with MTCT, collectively, “Borrowers” and, individually, each a “Borrower”), the
financial institutions listed on Schedule 1 to the Credit Agreement (defined herein) (collectively, the “Banks” and, individually, each a “Bank”); and NATIONAL CITY BANK, as lead arranger and administrative
agent for the Banks (“Agent”) have entered into that certain Credit and Security Agreement made effective as of April 21, 2005, and amended by the First Amendment to Credit and Security Agreement dated October 27, 2006 and
the Second Amendment to Credit and Security Agreement dated as of the date hereof (as so amended and as may be further amended from time to time, the “Credit Agreement”), whereby the Banks have extended financial accommodations to
the Borrowers, and the Borrowers have executed Notes (as defined in the Credit Agreement) in favor of the Banks, in evidence thereof. Terms used but not defined herein shall have the meaning ascribed thereto in the Credit Agreement. 
 (B) Acknowledge that each Guarantor has guaranteed payment of the principal and interest of all Notes each pursuant to a separate Guaranty of Payment of
Debt each dated as of the date hereof (collectively, the “Guarantees”). 
 (D) Acknowledge that the Guarantors have each
received and had an opportunity to review the Second Amendment to Credit and Security Agreement referred to in the first paragraph of this Confirmation of Guaranty and consent to the amendments to the Credit Agreement. 
 (E) Represent and warrant to the Agent and the Banks that the undersigned have no defenses, offsets or counterclaims, either individually or jointly,
with respect to their obligations under the Guarantees and the Guarantees remain unmodified and in full force and effect. 
 (Balance of Page
Intentionally Omitted) 

 This Confirmation of Guaranty is executed as of the 9th day of March, 2007. 
  

			
	
	AMCOMP CORPORATION, a California
	corporation
	By:	 	 /s/ Michael Gearhardt

	Name:	 	 Michael Gearhardt

	Title:	 	 Chief Financial Officer

	
	COMMAND TECHNOLOGIES, INC., a
	Virginia corporation
		
	By:	 	 /s/ Michael Gearhardt

	Name:	 	 Michael Gearhardt

	Title:	 	 Chief Financial Officer

	
	INTERNATIONAL CONSULTANTS, INC., an
	Ohio corporation
		
	By:	 	 /s/ Michael Gearhardt

	Name:	 	 Michael Gearhardt

	Title:	 	 Chief Financial Officer

	
	MANUFACTURING TECHNOLOGY, INC., a
	Florida corporation
		
	By:	 	 /s/ Michael Gearhardt

	Name:	 	 Michael Gearhardt

	Title:	 	 Chief Financial Officer

 [SIGNATURES OF GUARANTORS CONTINUE ON NEXT PAGE] 
  

 2 

			
	
	 VITRONICS INC., a New Jersey corporation

	By:	 	 /s/ Michael Gearhardt

	Name:	 	 Michael Gearhardt

	Title:	 	 Chief Financial Officer

	
	 ONBOARD SOFTWARE, INC., a Texas
 corporation

		
	By:	 	 /s/ Michael Gearhardt

	Name:	 	 Michael Gearhardt

	Title:	 	 Chief Financial Officer

	
	 AEROSPACE INTEGRATION
 CORPORATION,
 a Florida corporation

		
	By:	 	 /s/ Michael Gearhardt

	Name:	 	 Michael Gearhardt

	Title:	 	 Senior Vice President

  

 3Supplemental Indenture

 Exhibit 4.1 
 SUPPLEMENTAL INDENTURE (this “SUPPLEMENTAL INDENTURE”), dated as of March 9, 2007, among Consolidated Container Company LLC, a Delaware limited liability company (the “COMPANY”), Consolidated
Container Capital, Inc. (“CAPITAL,” and together with the Company, the “ISSUERS”), each of the Subsidiary Guarantors that is a party hereto (the “SUBSIDIARY GUARANTORS”) and The Bank of New York, a New York banking
corporation, as trustee under the indenture referred to below (the “TRUSTEE”). 
 W I T N E S S E T H 
 WHEREAS, the Issuers have heretofore executed and delivered to the Trustee an indenture dated as of May 20, 2004, among the Issuers, the Subsidiary
Guarantors and the Trustee (the “INDENTURE”) providing for the issuance of an aggregate principal amount of up to $257,000,000 of 10 3/4% Senior Secured Discount Notes due 2009 (the “NOTES”); 
 WHEREAS, the Issuers have, among other things, (i) solicited consents from the holders of the Notes to certain proposed amendments to the Indenture,
(ii) solicited consents from the holders of the Notes to release and terminate all liens on the collateral securing the Notes and (iii) made a tender offer for the Notes (the “TENDER OFFER”), in each case, in accordance with the
terms of an Offer to Purchase and Consent Solicitation Statement dated February 23, 2007 and a Supplement dated March 8, 2007 (as supplemented, the “SOLICITATION STATEMENT”); 
 WHEREAS, Section 9.02 of the Indenture provides that the Issuers and the Trustee may, with the written consent of the Holders of at least a majority
in principal amount of the Notes at the time outstanding, enter into a indenture supplemental to the Indenture for the purpose of amending the Indenture; 
 WHEREAS, the Issuers have received and delivered to the Trustee consents from at least 66 2/3% in principal amount at maturity of the Notes outstanding to effect the amendments with respect to the collateral
and security provisions of the Indenture set forth herein; 
 WHEREAS, the Issuers have received and delivered to the Trustee consents
from at least a majority in principal amount at maturity of the Notes outstanding to effect all other amendments to the Indenture set forth herein; 
 WHEREAS, this Supplemental Indenture incorporates the amendments to which the Holders of the Notes have consented; 
 WHEREAS, the
Issuers have been authorized by their respective Managers or Board of Directors, as applicable, to enter into and perform this Supplemental Indenture; and 
 WHEREAS, all other acts and proceedings required by law, the Indenture, the certificate of formation, the operating agreement, the certificate of incorporation and bylaws of each Issuer, 

 
as applicable, to make this Supplemental Indenture a valid and binding agreement for the purposes expressed herein, in accordance with its terms, have been
duly done and performed; 
 NOW, THEREFORE, in consideration of the premises and the covenants and agreements contained herein, and for other
good and valuable consideration the receipt of which is hereby acknowledged, and for the equal and proportionate benefit of the holders of the Notes, the Issuers, the Subsidiary Guarantors and the Trustee hereby agree as follows: 
 SECTION 1. Deletion of Certain Sections and Provisions. 
 (a) The Indenture is hereby amended to delete the following sections and clauses in their entirety and to insert in lieu of each such section the phrase “[Intentionally Omitted]”: Sections 4.03, 4.05, 4.06,
4.07, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16, 4.17, 4.18, 4.19, 4.20, 4.21, 4.23, clause (iv) of the first paragraph of Section 5.01, Sections 6.01(c), (d), (e), (f), (g), (h), (i) and (j) and Article 10. Any and all
references to the foregoing sections and clauses and any and all obligations thereunder related solely to such sections and clauses are hereby deleted throughout the Indenture, and such sections and references shall be of no further force or effect.
All definitions in the Indenture which are used exclusively in the sections and clauses deleted pursuant to the immediately preceding sentence are hereby deleted. 
 SECTION 2. Effectiveness of Supplemental Indenture; Operativeness of Amendments. 
 (a) this
Supplemental Indenture shall become effective when, and only when, all of the following conditions shall have been satisfied: 
 (1) duly executed counterparts hereof shall have been executed and delivered by the Issuers, the Subsidiary Guarantors and the Trustee; 
 (2) the Issuers shall have received the written consent of the holders of at least
66 2/3% in aggregate principal amount at maturity of the Notes at the time outstanding to effect the amendments
with respect to the collateral and security provisions of the Indenture set forth herein; and 
 (3) the Issuers shall
have received the written consent of the holders of not less than a majority in aggregate principal amount at maturity of the Notes at the time outstanding to effect all other amendments to the Indenture set forth herein. 
 (b) Notwithstanding the foregoing, the amendments to the Indenture set forth in this Supplemental Indenture shall become operative when, and only when,
all of the following additional conditions shall have been satisfied: 
 (1) the Issuers shall have accepted the Notes validly
tendered in connection with the written consents referred to in the immediately preceding clauses (a)(2) and (a)(3) as of the Settlement Date (as defined in the Solicitation Statement); and 

 (2) the Financing Condition (as defined in the Solicitation Statement) shall have been
satisfied. 
 SECTION 3. Reference to and Effect on the Indenture. 
 (a) On and after the effective date of this Supplemental Indenture, each reference in the Indenture to “this Indenture,” “hereunder,”
“hereof,” or “herein” shall mean and be a reference to the Indenture as supplemented by this Supplemental Indenture, unless the context otherwise requires. The Indenture, as supplemented by this Supplemental Indenture, shall be
read, taken and construed as one and the same instrument. 
 (b) Except as specifically amended above, the Indenture shall remain in full
force and effect and is hereby ratified and confirmed. 
 SECTION 4. Governing Law. This Supplemental Indenture shall be deemed to be
a contract under the laws of the State of New York and for all purposes shall be construed in accordance with the laws of said state, except as may otherwise be required by mandatory provisions of law. 
 SECTION 5. Defined Terms. Unless otherwise indicated, capitalized terms used herein and not defined shall have the respective meanings given such
terms in the Indenture. 
 SECTION 6. Trust Indenture Act Controls. No modification of any provisions of the Indenture effected by
this Supplemental Indenture is intended to eliminate or limit any provision of the Indenture that is required to be included therein by the Trust Indenture Act of 1939, as amended, as in force as of the effectiveness of this Supplemental Indenture.

 SECTION 7. Trustee Disclaimer; Trust. The recitals contained in this Supplemental Indenture shall be taken as the statements of the
Issuers and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture. The Trustee accepts the trust created by the Indenture, as supplemented
by this Supplemental Indenture, and agrees to perform the same upon the terms and conditions of the Indenture, as supplemented hereby. 
 SECTION 8. Counterparts. This Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument. 
 SECTION 9. Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof. 
 SECTION 10. Severability. In case any provision of this Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 [Signature pages follow] 

 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and
attested, all as of the date first above written. 
  

			
	CONSOLIDATED CONTAINER COMPANY LLC
		
	By:	 	 Consolidated Container Holdings LLC,
 as its Sole Member
and Manager

					
			
		 	By:	 	    /s/ Richard P. Sehring
		 		 	Name: Richard P. Sehring
		 		 	Title: Chief Financial Officer

  

			
	CONSOLIDATED CONTAINER CAPITAL, INC.
		
	By:	 	    /s/ Richard P. Sehring
		 	Name: Richard P. Sehring
		 	Title: Chief Financial Officer

  

			
	THE BANK OF NEW YORK, as Trustee
		
	By:	 	    /s/ Robert A. Massimillo
		 	Name: Robert A. Massimillo
		 	Title: Vice President

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