Document:

exhibit_waiver16creditagree.htm

     

    WAIVER
NO. 16

     

    WAIVER
NO. 16 dated as of September 25, 2009 (this “Agreement”)
between MORRIS PUBLISHING GROUP, LLC (the “Borrower”),
MORRIS COMMUNICATIONS COMPANY, LLC (“MCC”),
MORRIS COMMUNICATIONS HOLDING COMPANY, LLC (“Holdings”),
SHIVERS TRADING & OPERATING COMPANY (“Shivers”),
MPG NEWSPAPER HOLDING, LLC (“MPG
Holdings”), the SUBSIDIARY GUARANTORS party hereto (the “Subsidiary
Guarantors” and, together with the Borrower, MCC, Holdings, Shivers and
MPG Holdings, the “Obligors”),
the Lenders executing this Agreement on the signature pages hereto and JPMORGAN
CHASE BANK, N.A., as administrative agent for the lenders party to the Credit
Agreement referenced below (in such capacity, together with its successors in
such capacity, the “Administrative
Agent”).

     

    The
Borrower, MCC, the lenders party thereto and the Administrative Agent are
parties to a Credit Agreement dated as of December 14, 2005 (as amended by
Amendment No. 1 thereto, Amendment No. 2 and Waiver thereto, Amendment No. 3
thereto, Amendment No. 4 and Waiver No. 2 thereto, Waiver No. 3 thereto,
Amendment No. 5 and Waiver No. 4 thereto, Waiver No. 5 thereto, Waiver No. 6
thereto, Waiver No. 7 thereto, Waiver No. 8 thereto, Amendment No. 6 and Waiver
No. 9 thereto, Waiver No. 10 thereto, Waiver No. 11 thereto, Waiver No. 12
thereto, Waiver No. 13 thereto, Waiver No. 14 thereto and Waiver No. 15 thereto
and as otherwise modified and supplemented and in effect immediately prior to
the effectiveness of this Agreement, the “Credit
Agreement”).  The Lenders executing this Agreement on the
signature pages hereto wish now to waive a certain Default under the Credit
Agreement, subject to the terms and provisions of this Agreement, and,
accordingly, the parties hereto hereby agree as follows:

     

    Section
1.  Definitions.  Except
as otherwise defined in this Agreement, terms defined in the Credit Agreement
are used herein as defined therein.

     

    Section
2.  Waiver.  Subject
to the satisfaction of the conditions precedent specified in Section 4
hereof, but effective as of the date hereof, the Administrative Agent, on behalf
of the Lenders, hereby:

     

    (a)  extends,
until 5:00 p.m., New York City time, on October 2, 2009, the waiver set
forth in Section 3(a) of Amendment No. 4 and Waiver No. 2 to the Credit
Agreement of any Default under clause (b) of Article VII of the Credit Agreement
that consists solely of the Borrower or Morris Finance defaulting in the payment
when due of interest due on February 1, 2009 on the 2003 Senior Subordinated
Notes (the “February
1 Bond Interest Payment Default”);

     

    (b)  extends,
until 5:00 p.m., New York City time, on October 2, 2009, the waiver set
forth in Section 3(b) of Amendment No. 6 and Waiver No. 9 to the Credit
Agreement of any Default under clause (b) of Article VII of the Credit Agreement
that consists solely of the Borrower or Morris Finance defaulting in the payment
when due of interest due on August 1, 2009 on the 2003 Senior Subordinated Notes
(the “August
1 Bond Interest Payment Default”);

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    (c)  extends,
until 5:00 p.m., New York City time, on October 2, 2009, the waiver set
forth in Section 2(c) of Waiver No. 12 to the Credit Agreement of any Default
that consists solely of the Cash Flow Ratio exceeding the applicable amount
permitted under Section 6.06(a) of the Credit Agreement with respect to the
period of four fiscal quarters ending on June 30, 2009 (the “Cash
Flow Ratio Default”); and

     

    (d)  extends,
until 5:00 p.m., New York City time, on October 2, 2009, the waiver set
forth in Section 2(d) of Waiver No. 12 to the Credit Agreement of any Default
that consists solely of the Interest Coverage Ratio being less than the
applicable amount permitted under Section 6.06(c) of the Credit Agreement with
respect to the period of four fiscal quarters ending on June 30, 2009 (together
with the February 1 Bond Interest Payment Default, the August 1 Bond Interest
Payment Default and the Cash Flow Ratio Default, the “Specified
Defaults”);

     

    provided
that such waivers shall expire upon:

     

     (i)           the
termination or expiry of the Amended Forbearance Agreement referenced below or
the occurrence of any “Forbearance Termination Event” thereunder (as such term
is defined therein);

     

    (ii)           any
amendment, waiver, supplementation or modification of the Amended Forbearance
Agreement (other than Amendment No. 13 to Forbearance Agreement referenced
below) without the consent of the Required Lenders;

     

    (iii)           the
occurrence or continuance of any Default other than a Specified
Default;

     

    (iv)           the
failure of any representation or warranty made in this Agreement to be true and
correct as of the date when made; or

     

    (v)           the
failure by any Obligor to comply with any term, condition, covenant or agreement
contained in this Agreement.

     

    Upon the
expiry of any of the foregoing waivers as provided above, the Administrative
Agent and each Lender shall be entitled to exercise any and all rights and
remedies under the Loan Documents in respect of any Event of Default covered by
such waiver to the extent such Event of Default shall then be
continuing.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Section
3.  Representations
and Warranties.  Each of the Obligors represents and warrants
to the Lenders and the Administrative Agent, as to itself and each of its
subsidiaries, that (i) the representations and warranties set forth in
Article III of the Credit Agreement and in the other Loan Documents are
true and complete as if made on and as of the date hereof (or, if any such
representation or warranty is expressly stated to have been made as of a
specific date, such representation or warranty shall be true and correct as of
such specific date) and (ii) immediately before and after giving effect to this
Agreement, no Default or Event of Default (other than any Specified Default or
any Event of Default arising therefrom) has occurred and is
continuing.

     

    Section
4.  Conditions
Precedent.  The waivers set forth in Section 2 hereof shall
become effective as of the date hereof upon the satisfaction of the following
conditions:

     

    (i)           Execution.  The
Administrative Agent shall have received executed counterparts of this Agreement
from the Obligors and the Required Lenders.

     

    (ii)           Amendment
to Forbearance Agreement.  The Administrative Agent shall have
received, in form and substance satisfactory to it, a duly executed and binding
amendment (“Amendment
No. 13 to Forbearance Agreement”) to the Forbearance Agreement dated as
of February 26, 2009 among the Borrower, Morris Finance, the guarantors parties
thereto and holders, or investment advisors or managers of holders, of over 75%
of the principal amount of the outstanding 2003 Senior Subordinated Notes (as
amended by the Amendment to Forbearance Agreement dated as of April 6, 2009,
Amendment No. 2 to Forbearance Agreement dated as of April 23, 2009, Amendment
No. 3 to Forbearance Agreement dated as of May 28, 2009, Amendment No. 4 to
Forbearance Agreement dated as of June 12, 2009, Amendment No. 5 to Forbearance
Agreement dated as of July 14, 2009, Amendment No. 6 to Forbearance Agreement
dated as of July 31, 2009, Amendment No. 7 to Forbearance Agreement dated as of
August 14, 2009, Amendment No. 8 to Forbearance Agreement dated as of August 21,
2009, Amendment No. 9 to the Forbearance Agreement dated as of August 28, 2009,
Amendment No. 10 to the Forbearance Agreement dated as of September 4, 2009,
Amendment No. 11 to the Forbearance Agreement dated as of September 11, 2009,
Amendment No. 12 to the Forbearance Agreement dated as of September 18, 2009,
Amendment No. 13 to Forbearance Agreement and any subsequent amendment thereto
in form and substance satisfactory to the Required Lenders, the “Amended
Forbearance Agreement”).

     

    (iii)           No
Default.  No Default or Event of Default (other than any
Specified Default or any Event of Default arising therefrom) shall have occurred
and be continuing on the date hereof.

     

    (iv)           Expenses.  The
Borrower shall have paid in full the costs, expenses and fees as set forth in
Section 9.03 of the Credit Agreement (including the reasonable fees, charges and
disbursements of counsel for the Administrative Agent).

     

    (v)           Closing
Checklist.  The Administrative Agent shall have received, in
form and substance satisfactory to it, a closing checklist and timeline for the
documentation contemplated to be executed in connection with the “Senior
Refinancing Transaction” referred to in the Restructuring Term Sheet dated as
September 23, 2009 among the Borrower, Morris Finance, the guarantors parties
thereto and holders (or investment advisors or managers thereof) of the 2003
Senior Subordinate Notes, which checklist and timeline shall include the escrow
agreement and the intercreditor agreement referred to in said Restructuring Term
Sheet and shall provide for said “Senior Refinancing Transaction” to occur on or
before October 9, 2009.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Section
5.  Security
Documents.  Each of the Obligors (a) confirms its obligations
under the Security Documents, as applicable, (b) confirms that the obligations
of the Borrower and MCC under the Credit Agreement are entitled to the benefits
of the pledges and guarantees, as applicable, set forth in the Security
Documents, (c) confirms that the obligations of the Borrower and MCC under the
Credit Agreement constitute “Guaranteed Obligations”, “Secured Obligations” and
“Obligations” (as such terms are defined in the Security Documents, as
applicable) and (d) confirms that the Credit Agreement is the “Credit Agreement”
under and for all purposes of the Security Documents.

     

    Section
6.  Additional
Fee.  Notwithstanding anything to the contrary contained in
Section 6 of Waiver No. 13 to the Credit Agreement, the Required Lenders hereby
agree that the “Waiver Fee” set forth in Section 6 of said Waiver No. 13 shall
be due and payable on the earliest to occur of:

     

    (x) the
time at which the waivers extended pursuant to Section 2 hereof expire as
provided in said Section 2; and

     

    (y)
5:00 p.m., New York City time, on October 2, 2009 (such earliest time, the
“Waiver
Fee Due Date”);

     

    provided
that the Waiver Fee shall be deemed waived and shall not be payable if (a) on or
before the Waiver Fee Due Date, all principal of and interest on the Loans and
other amounts due and payable to the Lenders under the Loan Documents shall have
been paid in full and the Commitments shall have terminated, (b) on or before
the Waiver Fee Due Date, Tranche Holdings, LLC or its designee shall have
purchased the Loans and assumed the Commitments in full pursuant to a Master
Assignment and Assumption in form and substance satisfactory to the
Administrative Agent and the Lenders, or (c) prior to the payment of the Waiver
Fee, Consenting Lenders having Commitments representing at least a majority of
the Commitments of all Consenting Lenders shall so agree in
writing.

     

    Section
7.  Miscellaneous.  This
Agreement shall be limited as written and nothing herein shall be deemed to
constitute a waiver of any other term, provision or condition of the Credit
Agreement or any other Loan Document in any other instance than as set forth
herein or prejudice any right or remedy that the Administrative Agent or any
Lender may have or may in the future have under the Credit Agreement or any
other Loan Document.  Except as herein provided, each of the Credit
Agreement and the other Loan Documents shall remain unchanged and in full force
and effect.  This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
amendatory instrument, and any of the parties hereto may execute this Agreement
by signing any such counterpart.  Delivery of an executed counterpart
of a signature page to this Agreement by electronic transmission shall be
effective as delivery of a manually executed counterpart of this
Agreement.  This Agreement shall be governed by, and construed in
accordance with, the law of the State of New York.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

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

     

     

    MORRIS
PUBLISHING GROUP, LLC

    By: /s/ Craig S.
Mitchell

    Name: Craig S.
Mitchell

    Title: Senior Vice
President of Finance

     

     

    MORRIS
COMMUNICATIONS COMPANY, LLC

    By: /s/ Craig S.
Mitchell

    
      Name: Craig S.
Mitchell 

      Title: Senior Vice
President of Finance

    

     

     

    MORRIS
COMMUNICATIONS HOLDING COMPANY,
LLC

    
      By: /s/ Craig S.
Mitchell

      
        Name: Craig S.
Mitchell 

        Title: Senior Vice
President of Finance

      

    

     

    SHIVERS
TRADING & OPERATING COMPANY

    
      By: /s/ Craig S.
Mitchell

      
        Name: Craig S.
Mitchell 

        Title: Senior Vice
President of Finance

      

    

     

     

    MPG
NEWSPAPER HOLDING, LLC

    
      By: /s/ Craig S.
Mitchell

      
        Name: Craig S.
Mitchell 

        Title: Senior Vice
President of Finance

        
          
            
               

            

            
               

              
                

              

            

            
               

            

          

        

      

    

     

     

    MORRIS
PUBLISHING FINANCE CO.

    YANKTON
PRINTING COMPANY

    BROADCASTER
PRESS, INC.

    THE
SUN TIMES, LLC

    HOMER
NEWS, LLC

    LOG
CABIN DEMOCRAT, LLC

    ATHENS
NEWSPAPERS, LLC

    SOUTHEASTERN
NEWSPAPERS COMPANY, LLC

    STAUFFER
COMMUNICATIONS, INC.

    FLORIDA
PUBLISHING COMPANY

    THE
OAK RIDGER, LLC

    MPG
ALLEGAN PROPERTY, LLC

    MPG
HOLLAND PROPERTY, LLC

    MCC
RADIO, LLC

    MCC
OUTDOOR, LLC

    MCC
MAGAZINES, LLC

    MCC
EVENTS, LLC

    HIPPODROME,
LLC

    BEST
READ GUIDES FRANCHISE COMPANY, LLC

    MORRIS
VISITOR PUBLICATIONS, LLC

    MORRIS
BOOK PUBLISHING, LLC

    THE
LYONS PRESS, INC.

    MORRIS
AIR, LLC

    MCC
HARBOUR CONDO, LLC

    MCC
CUTTER COURT, LLC

    MORRIS
DIGITAL WORKS, LLC

    MSTAR
SOLUTIONS, LLC

    MVP
FRANCE, LLC

    MVP
GLOBAL, LLC

    SOUTHWESTERN
NEWSPAPERS COMPANY, L.P.

    MCC
OUTDOOR HOLDING, LLC

    THE
MAP GROUP, INC.

     

    
      By: /s/
Craig S. Mitchell

      
        Name: Craig S.
Mitchell 

        Title: Senior Vice
President of Finance

          
            
               

            

            
               

              
                
 

            

            
               

            

          

           

          
            
              
                	
                        JPMORGAN
      CHASE BANK, N.A.,

                      
	
                        As
      Administrative Agent

                      
	 
      
	
                        By:
      /s/ Neil R.
      Boylan

                      
	 
      	
                        Name:
      Neil R. Boylan

                      
	 
      	
                        Title:
      Managing Director

                      

                
                  
                     

                  

                  
                     

                    
                      
 

                  

                  
                     

                  

                

              

            

          

        

      

    

     

     

    LENDERS:

     

    
      
        
          	
                  JPMORGAN
      CHASE BANK, N.A.,

                
	
                  Individually
      

                
	 
      
	
                  By:
      /s/ Neil R.
      Boylan

                
	 
      	
                  Name:
      Neil R. Boylan

                
	 
      	
                  Title:
      Managing Director

                

        

    

     

    
      
        
          	
                  THE
      BANK OF NEW YORK MELLON,

                
	 
      
	 
      
	
                  By:
      /s/ Edward J.
      DeSalvio      

                
	 
      	
                  Name:
      Edward J. Desalvio

                
	 
      	
                  Title:
      Managing Director

                

        

    

     

    
      
        	
                SUNTRUST
      BANK

              
	 
      
	 
      
	
                By:
      /s/ Katherine
      Bass

              
	 
      	
                Name:
      Katherine Bass

              
	 
      	
                Title:
      First Vice President

              

      

    

     

    
      
        	
                 WACHOVIA
      BANK, NATIONAL ASSOCIATION,

              
	 
      
	 
      
	
                By:
      /s/ Russ
    Lyons

              
	 
      	
                Name:
      Russ Lyons      

              
	 
      	
                Title:
      Director

              

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
      
        	
                ALLIED
      IRISH BANKS, PLC

              
	 
      
	 
      
	
                By:
      /s/ Joseph
      Augustini

              
	 
      	
                Name:
      Joseph Augustini

              
	 	Title:
      Senior Vice President

      

       

      
        
          
            	
                    ALLIED
      IRISH BANKS, PLC

                  
	 
      
	 
      
	
                    By:
      /s/ Shane
      O'Driscoll

                  
	 
      	
                    Name:
      Shane O'Driscoll

                  
	 	Title:
      Assistant Vice President

          

        

      

       

    

    
      
        	
                GENERAL
      ELECTRIC CAPITAL CORP.

              
	 
      
	 
      
	
                By:
      /s/ Thomas Costello   

              
	 
      	
                Name:
      Thomas Costello   

              
	 
      	
                Title:
      Duly Authorized Signatory

              

    

     

    
      
        	
                 US
      BANK NATIONAL ASSOCIATION

              
	 
      
	 
      
	
                By: /s/ Margarita
      Scher

              
	 
      	
                Name:
      Margarita Scher      

              
	 
      	
                Title:
      Vice President

              

      

    

     

    
      
        	
                WEBSTER
      BANK, NATIONAL ASSOCIATION,

              
	 
      
	 
      
	
                By:
      /s/ John Gilsenan   

              
	 
      	
                Name:
      John Gilsenan   

              
	 
      	
                Title:
      Vice President

              

      

    

    
       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      
        	
                KEYBANK
      NATIONAL ASSOCIATION,

              
	 
      
	 
      
	
                By:
      /s/ Carla
      Laning

              
	 
      	
                Name:
      Carla Laning   

              
	 
      	
                Title:
      Vice President

              

      

    

     

    
      
        	
                BANK
      OF AMERICA, N.A.

              
	 
      
	 
      
	
                By:
      /s/ Garrett M Dolt   

              
	 
      	
                Name:
      Garrett M Dolt      

              
	 
      	
                Title:
      Senior Vice President

              

      

    

     

    
      
        
          	
                  COMERICA
      BANK

                
	 
      
	 
      
	
                  By:
      /s/ Sarah R.
      West

                
	 
      	
                  Name:
      Sarah R. West   

                
	 
      	
                  Title:
      Vice President

                

        

      

    

     

    
      
        
          	
                  AIB
      Debt Management, Limited

                
	 
      
	 
      
	
                  By: /s/ Joseph
      Augustini

                
	 
      	
                  Name:
      Joseph Augustini

                
	 	Title:
      Senior Vice President

        

         

        
          
            
              	
                            
                        AIB
      Debt Management, Limited

                      

                    
	 
      
	 
      
	
                      By:
      /s/ Shane
      O'Driscoll

                    
	 
      	
                      Name:
      Shane O'Driscoll

                    
	 	Title:
      Assistant Vice President

            

             

          

        

      

    

    
      
        
          	
                  RBS
      CITIZENS N.A.

                
	 
      
	 
      
	
                  By:
      /s/ Joshua Conlon   

                
	 
      	
                  Name:
      Joshua Conlon   

                
	 
      	
                  Title:
      Bank
Officerexhibit4-1.htm

     

    
      

      

    

    Exhibit 4.1

    
 

    SECOND
AMENDMENT dated as of October 9, 2009 (this “Amendment”), to the
Credit Agreement dated as of June 9, 2008 and amended and restated as
of July 16, 2009 (as further modified and supplemented prior to the date hereof,
the “Credit
Agreement”), among PLY GEM HOLDINGS, INC., a Delaware corporation (“Holdings”),
PLY GEM INDUSTRIES, INC., a Delaware corporation (the “Specified U.S.
Borrower”), CWD WINDOWS AND DOORS, INC., a Canadian corporation (the
“Canadian
Borrower” and, together with the Specified U.S. Borrower, the “Borrowers”), the
Subsidiaries of the Specified U.S. Borrower from time to time party thereto as
borrowers and guarantors (the “Subsidiary
Guarantors” and, together with Holdings and the Borrowers, the “Reaffirming
Parties”), each lender from time to time party thereto (the “Lenders”), CREDIT
SUISSE, CAYMAN ISLANDS BRANCH, as Administrative Agent (in such capacity, the
“Administrative
Agent”), U.S. Swing Line Lender and U.S. L/C Issuer, GENERAL ELECTRIC
CAPITAL CORPORATION, as Collateral Agent (in such capacity, the “Collateral Agent”),
CREDIT SUISSE, TORONTO BRANCH (“CS Toronto”), as
Canadian Swing Line Lender and Canadian L/C Issuer, and the other agents party
thereto.

     

    A.           Pursuant
to the Credit Agreement, the Lenders have extended, and have agreed to extend,
credit to the Borrowers.

     

    B.           The
Borrowers have requested that the Credit Agreement be amended as set forth
herein, in order to, among other things, modify the terms and conditions of the
Credit Agreement to (i) allow the U.S. Borrower to issue an additional $25
million of its Senior Secured Notes and (ii) allow for certain refinancing of
its 2012 Senior Subordinated Notes.

     

    C.           Each
of the Reaffirming Parties is party to one or more of the Guaranties, the
Collateral Documents and the Intercreditor Agreement (collectively, the “Security Documents”),
pursuant to which, among other things, the Reaffirming Parties Guaranteed the
Obligations (or, in the case of the Canadian Loan Parties, the Canadian
Obligations) of the Borrowers under the Credit Agreement and provided security
therefor.

     

    D.           Each
Reaffirming Party is willing to reaffirm its obligations under the Security
Documents.

     

    E.           Capitalized terms
used but not defined in this Amendment shall have the meanings given them in the
Credit Agreement.

     

    Accordingly,
the parties hereto hereby agree as follows:

     

    SECTION
1. Amendments to Credit
Agreement.  Upon the terms and subject to the conditions set
forth herein, the Borrowers, Holdings, the Administrative Agent, the Collateral
Agent, CS Toronto and the Required Lenders hereby agree that the Credit
Agreement shall be amended as of the Second Amendment Effective Date (as
hereinafter defined) as follows:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a) Amendment to Section 1.01
(Definitions and Accounting Terms).  Section 1.01 of the Credit
Agreement is hereby amended by:

     

    (i) deleting
the definition of “Permitted Subordinated Indebtedness” in its entirety and
replacing it with the following:

     

    ““Permitted Subordinated
Indebtedness” means any unsecured Indebtedness of the Specified U.S.
Borrower that (a) is expressly subordinated to the prior payment in full in cash
of the Obligations on terms and conditions no less favorable to the Lenders than
the terms and conditions of the 2012 Senior Subordinated Notes, (b) will
not mature prior to the date that is six months after the Maturity Date, (c) has
no scheduled amortization or payments of principal prior to the Maturity Date
and (d) has covenant, default and remedy provisions no more restrictive, or
mandatory prepayment, repurchase or redemption provisions no more onerous or
expansive in scope than those contained in the 2012 Senior Subordinated Notes
Indenture as in effect on February 12, 2004, taken as a whole; provided any such
Indebtedness shall constitute Permitted Subordinated Indebtedness only if both
before and after giving effect to the issuance or incurrence thereof, no Default
or Event of Default shall have occurred and be continuing.”; and

     

    (ii) deleting
the definition of “Senior Secured Notes” in its entirety and replacing it with
the following:

     

    ““Senior Secured Notes”
means the senior secured notes of the Specified U.S. Borrower in an aggregate
principal amount of up to $725,000,00 issued and sold on or after the Closing
Date pursuant to the Senior Secured Notes Documents, as the same may be modified
or otherwise supplemented from time to time in accordance with the terms hereof,
and any exchange notes issued in exchange therefor, in each case, pursuant to
the Senior Secured Notes Indenture, as the same may be modified or otherwise
supplemented from time to time in accordance with the terms
hereof.”

     

    (b) Amendment to Section 7.02
(Investments). Section 7.02 of the Credit Agreement is hereby amended by
deleting clause
(e) thereof in its entirety and replacing it with the
following:

     

    “(e) Investments
by Holdings in the Equity Interests of the Specified U.S. Borrower in connection
with a Permitted Equity Issuance;”

     

    (c) Amendment to Section 7.03
(Indebtedness). Section 7.03 of the Credit Agreement is hereby amended
by:

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (i) deleting
clause (a)
thereof in its entirety and replacing it with the following:

     

    “(a)           in
the case of the Specified U.S. Borrower and the U.S. Subsidiary Guarantors, (i)
the 2012 Senior Subordinated Notes and (ii) any Permitted Refinancings thereof
(including any Indebtedness resulting from capitalization or accrual of
interest, payment of interest in kind, or accretion of discount), so long as
immediately before and immediately after giving effect to such Permitted
Refinancing,

     

    (A)           Excess
Availability shall be more than 25% of the lesser of the Total Borrowing Base
and the Aggregate Commitments;

     

    (B)           subject
to the proviso below, the amount of interest payable in cash (and not in kind or
otherwise capitalized or accrued) with respect to the 2012 Senior Subordinated
Notes and such Permitted Refinancing Indebtedness in any twelve-month period
shall not exceed, in the aggregate, taking into account all interest payable in
cash with respect to the 2012 Senior Subordinated Notes (but excluding any
Defaulted Interest (as defined in the 2012 Senior Subordinated Notes Indenture))
and any Permitted Refinancing Indebtedness (but excluding any defaulted interest
at a rate not in excess of 2.0% per annum) permitted under this clause (ii),
$32,400,000; provided that, if at any time (x) the Specified U.S. Borrower shall
be in compliance with clause (A) above,
calculated on an average basis for the thirty (30) days ended on the date of
such payment and on a pro forma basis after giving effect to the making of such
payment, (y) the Consolidated Fixed Charge Coverage Ratio as of the end of the
most recently completed Measurement Period of Holdings for which financial
statements have been delivered pursuant to Section 6.01,
calculated on a pro forma basis after giving effect to the making of such
payment,  shall be equal to or greater than 1.10:1.0, and (z) no
Default shall have occurred and be continuing or would result therefrom, this
clause (B)
shall not limit the payment of interest in cash with respect to any Permitted
Refinancing Indebtedness to the extent that such interest would otherwise be
payable in kind or otherwise capitalized or accrued and added to the principal
balance thereof; and

     

    (C)           such
Permitted Refinancing Indebtedness otherwise qualifies as “Permitted
Subordinated Indebtedness” hereunder;”

     

    and

     

    (ii) deleting
clause (b)
thereof in its entirety and replacing it with the following:

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “(b)           in
the case of the Specified U.S. Borrower and the U.S. Subsidiary Guarantors, the
Senior Secured Notes in an aggregate principal amount not to exceed $725,000,000
and any Permitted Refinancings thereof;”.

     

    (d) Amendment to Section 7.14
(Prepayments, Etc. of Indebtedness).  Section 7.14 of the
Credit Agreement is hereby amended by deleting such Section 7.14 in its entirety
and replacing it with the following:

     

                          “Section
7.14. Prepayments, Etc. of
Indebtedness.  (i) Prepay, redeem, purchase, defease or
otherwise satisfy prior to the scheduled maturity thereof in any manner any of
the Senior Secured Notes, the 2012 Senior Subordinated Notes, Permitted Seller
Notes and any Permitted Subordinated Indebtedness (collectively, “Junior Financing”) or
make any payment in violation of any subordination terms of any Junior Financing
Documentation, except so long as no Default shall have occurred and is
continuing or would result therefrom (i) the prepayment, redemption, purchase or
defeasance of any such Junior Financing with the net cash proceeds of, or the
exchange of such Junior Financing into, any Permitted Subordinated Indebtedness
or Permitted Equity Issuance to the extent that such proceeds were received
within 180 days prior to the date of such prepayment, redemption, purchase or
defeasance and held in a segregated account pending application pursuant to this
Section 7.14, (ii) the conversion of any Junior Financing to Equity Interests
(other than Disqualified Equity Interests) and (iii) the prepayment, redemption,
purchase or defeasance of any such Junior Financing, so long as immediately
before and immediately after giving effect thereto (A) no Default shall have
occurred and be continuing or would result therefrom, (B) Excess Availability
shall be at least 25% of the lesser of the Total Borrowing Base and the
Aggregate Commitments and (C) the Specified U.S. Borrower would be in pro forma
compliance with the covenant set forth in Section 7.11 (whether or not such
covenant is otherwise applicable at such time), provided that in each case such
payment is also permitted under the Senior Secured Notes Indenture or (b) amend,
modify or change in any manner materially adverse to the interests of the
Administrative Agent or the Lenders any term or condition of any Junior
Financing Documentation.”

     

    SECTION
2. Reaffirmation.  Each
Reaffirming Party, by its signature below, hereby (a) agrees that,
notwithstanding the effectiveness of this Amendment or the Credit Agreement, the
Security Documents continue to be in full force and effect, (b) affirms and
confirms its Guarantee of the Obligations (or, in the case of the Canadian Loan
Parties, the Canadian Obligations) and the pledge of and/or grant of a security
interest in its assets as Collateral to secure such Obligations, all as provided
in the Security Documents as originally executed, and acknowledges and agrees
that such Guarantee, pledge and/or grant continue in full force and effect in
respect of, and to secure, such Obligations under the Credit Agreement and the
other Loan Documents and (c) affirms and confirms that all the representations
and warranties made by or relating to it contained in the Credit Agreement and
the other Loan Documents are true and correct in all material respects (or in
all respects in the case of any representations and warranties 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        
qualified
by materiality) on and as of the Second Amendment Effective Date, except to the
extent such representations and warranties expressly relate to an earlier date,
in which case they were true and correct in all material respects (or in all
respects in the case of any representations and warranties qualified by
materiality) as of such earlier date.

    

     

     

    SECTION
3. Representations and
Warranties. To induce the other parties hereto to enter into this
Amendment, each of Holdings and each Borrower represents and warrants to each of
the other parties hereto, that, at the time of and immediately after giving
effect to this Amendment:

     

    (a) The
representations and warranties contained in Article V of the
Credit Agreement and in each other Loan Document are true and correct in all
material respects (or in all respects in the case of any representations and
warranties qualified by materiality) on and as of the Second Amendment Effective
Date, except to the extent such representations and warranties expressly relate
to an earlier date, in which case they were true and correct in all material
respects (or in all respects in the case of any representations and warranties
qualified by materiality) as of such earlier date; and

     

    (b) No Event
of Default or Default has occurred and is continuing.

     

    SECTION
4. Applicable Law. THIS
AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK.

     

    SECTION
5. No Novation. Neither this
Amendment nor the effectiveness of the Credit Agreement shall extinguish the
Obligations for the payment of money outstanding under the Credit Agreement or
discharge or release the Lien or priority of any Loan Document or any other
security therefor or any guarantee thereof, and the liens and security interests
in favor of the Collateral Agent for the benefit of the Secured Parties securing
payment of the Obligations are in all respects continuing and in full force and
effect with respect to all Obligations.  Nothing herein contained
shall be construed as a substitution or novation, or a payment and reborrowing,
or a termination, of the Obligations outstanding under the Credit Agreement or
instruments guaranteeing or securing the same, which shall remain in full force
and effect, except as modified hereby or by instruments executed concurrently
herewith.  Nothing expressed or implied in this Amendment, the Credit
Agreement or any other document contemplated hereby or thereby shall be
construed as a release or other discharge of the Borrowers under the Credit
Agreement or the Borrowers or any other Loan Party under any Loan Document from
any of its obligations and liabilities thereunder, and such obligations are in
all respects continuing with only the terms being modified as provided in this
Amendment and in the Credit Agreement.  The Credit Agreement and each
of the other Loan Documents shall remain in full force and effect, until and
except as modified hereby.  This Amendment shall constitute a Loan
Document for all purposes of the Credit Agreement.

     

    SECTION 6. Notices.  All
notices hereunder shall be given in accordance with the provisions of Section 10.02 of
the Credit Agreement.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    SECTION
7. Counterparts.  This
Amendment may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original but all of
which when taken together shall constitute a single contract, and shall become
effective as provided in Section 9
hereof.  Delivery of an executed signature page to this Amendment by
facsimile transmission shall be effective as delivery of a manually signed
counterpart of this Amendment.

     

    SECTION
8. Headings.  Section
headings used herein are for convenience of reference only, are not part of this
Amendment and are not to affect the construction of, or to be taken into
consideration in interpreting, this Amendment.

     

    SECTION
9. Effectiveness;
Amendment.  This Amendment and the Credit Agreement shall
become effective as of the date (the “Second Amendment Effective
Date”) on which (i) the Administrative Agent (or its counsel) shall have
received counterparts of this Amendment that, when taken together, bear the
signatures of (a) the Borrowers, (b) Holdings, (c) the Subsidiary Guarantors
listed on Schedule I
attached hereto, (d) the Administrative Agent, (e), the Collateral Agent, (f) CS
Toronto and (g) the Required Lenders, (ii) each of the conditions set forth in
Sections 4.02(a)
and (b) of the
Credit Agreement shall be satisfied and the Administrative Agent shall have
received a certificate to that effect, dated as of the Second Amendment
Effective Date and signed by a Responsible Officer of the Specified U.S.
Borrower, (iii) the Administrative Agent shall have received such customary
closing certificates and documentation as shall be reasonably requested by the
Administrative Agent, in each case consistent with those delivered on the
Closing Date under Section 4.01 of
the Credit Agreement and (iv) all fees and expenses due and payable to the
Administrative Agent or any Lender on or prior to the Second Amendment Effective
Date, including reimbursement or payment of all out-of-pocket expenses required
to be reimbursed or paid by the Borrowers hereunder or under any other Loan
Document, in each case to the extent invoiced no later than 11:00 a.m. on the
Second Amendment Effective Date, shall have been paid.

     

    SECTION
10. Reference to and Effect on Credit
Agreement and other Loan Documents.  From and after the Second
Amendment Effective Date, each reference in the Credit Agreement to the terms
“Agreement”, “this Agreement”, “herein”, “hereinafter”, “hereto”, “hereof” and
words of similar import and each reference in the other Loan Documents to “the
Credit Agreement”, “thereunder,” “thereof” or words of like similar import
referring to the Credit Agreement, shall, unless the context otherwise requires,
mean the Credit Agreement, as amended by this Amendment.

     

    [Remainder
of this page intentionally left blank]

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

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

     

    PLY GEM
HOLDINGS, INC.,

    as
Holdings

     

    
      
        
          	 By:
      	 
      	
                  /s/Shawn
      K. Poe

                
	
                  Name:

                	 
      	
                  Shawn
      K. Poe

                
	
                  Title:

                	 
      	
                  Chief
      Financial Officer

                

        

      

       

       

       

      PLY GEM
INDUSTRIES, INC.,

      as the
Specified U.S. Borrower

       

      
        
          	 By:
      	 
      	
                  /s/Shawn
      K. Poe

                
	
                  Name:

                	 
      	
                  Shawn
      K. Poe

                
	
                  Title:

                	 
      	
                  Chief
      Financial Officer

                

        

      

       

       

      CWD
WINDOWS AND DOORS, INC.,

      as the
Canadian Borrower

       

      
        
          	 By:
      	 
      	
                  /s/Shawn
      K. Poe

                
	
                  Name:

                	 
      	
                  Shawn
      K. Poe

                
	
                  Title:

                	 
      	
                  Secretary

                

        

      

       

       

      EACH OF
THE SUBSIDIARIES LISTED ON SCHEDULE I-A HERETO,
each as a Guarantor

       

      
        
          	 By:
      	 
      	
                  /s/Shawn
      K. Poe

                
	
                  Name:

                	 
      	
                  Shawn
      K. Poe

                
	
                  Title:

                	 
      	
                  Secretary
      of each of the above-referenced
entities

                

        

         

         

         

         

         

      

    

    
      
        
          Signature
Page to Second Amendment

           

        

         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
       

      NEW
GLAZING INDUSTRIES, LTD.,

      as a
Guarantor

       

      By:  Glazing
Industries Management, L.L.C., its General Partner

       

      
        
          	 By:
      	 
      	
                  /s/Shawn
      K. Poe

                
	
                  Name:

                	 
      	
                  Shawn
      K. Poe

                
	
                  Title:

                	 
      	
                  Secretary
      of the General
Partner

                

        

      

    
      NEW
ALENCO EXTRUSION, LTD.,

      as a
Guarantor

       

      By:  Alenco
Extrusion Management, L.L.C., its General Partner

       

      
        
          	 By:
      	 
      	
                  /s/Shawn
      K. Poe

                
	
                  Name:

                	 
      	
                  Shawn
      K. Poe

                
	
                  Title:

                	 
      	
                  Secretary
      of the General Partner

                

        

      

       

       

       

       

      
        
          Signature
Page to Second Amendment

           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      NEW
ALENCO WINDOW, LTD.,

      as a
Guarantor

       

      By:  Alenco
Building Products Management, L.L.C., its General Partner

       

      
        
          	 By:
      	 
      	
                  /s/Shawn
      K. Poe

                
	
                  Name:

                	 
      	
                  Shawn
      K. Poe

                
	
                  Title:

                	 
      	
                  Secretary
      of the General Partner

                

        

      

       

       

      

      CREDIT
SUISSE, CAYMAN ISLANDS BRANCH, individually and

      as
Administrative Agent, U.S. Swing Line Lender and U.S. L/C Issuer

       

      
        
          	 By:
      	 
      	
                  /s/Robert
      Hetu

                
	
                  Name:

                	 
      	
                  Robert
      Hetu

                
	
                  Title:

                	 
      	
                  Managing
      Director

                

        

      

       

       

      
        
          	 By:
      	 
      	
                  /s/Christopher
      Reo Day

                
	
                  Name:

                	 
      	
                  Christopher
      Reo Day

                
	
                  Title:

                	 
      	
                  Associate

                

        

      

      
         

      

       

       

       

      

      GENERAL
ELECTRIC CAPITAL CORPORATION, individually and as Collateral Agent

       

       

      
        
          	 By:
      	 
      	
                  /s/William
      J. Kane

                
	
                  Name:

                	 
      	
                  William
      J. Kane

                
	
                  Title:

                	 
      	
                  Duly
      Authorized Signatory

                

        

      

      
         

      

       

       

      
         

      

    

     

     

     

    
      
        Signature
Page to Second Amendment

         

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      CREDIT
SUISSE, TORONTO BRANCH, as Canadian Swing Line Lender, Canadian L/C Issuer and
Canadian Revolving Credit Lender

       

      
        
          	 By:
      	 
      	
                  /s/Alain
      Daoust

                
	
                  Name:

                	 
      	
                  Alain
      Daoust

                
	
                  Title:

                	 
      	
                  Director

                

        

      

       

      
        	 By:
      	 
      	
                /s/Bruce
      F. Wetherly

              
	
                Name:

              	 
      	
                Bruce
      F. Wetherly

              
	
                Title:

              	 
      	
                Director,
      Credit Suisse, 

                Toronto
      Branch

              

      

       

       

      
         

      

    

    
      

      
        	
                SIGNATURE
      PAGE TO AMENDMENT AND RESTATEMENT AGREEMENT DATED AS OF THE 

                DATE
      FIRST ABOVE WRITTEN TO THE PLY GEM CREDIT
  AGREEMENT

              

      

      

      
        	
                Name of Lender:

              	 
      	
                
                   

                  Bank
      Midwest, N.A.

                

              
	
                By:

              	 
      	
                /s/David
      L. Rambo

              
	
                Name:         

              	 
      	
                David L.
  Rambo  

              
	Title:	 	
                 SeniorVice President 

                Commercial
  Lending

              

      

       

       

       

      
        	
                Name of Lender:

              	 
      	
                
                   

                  UBS
      Loan Finance LLC

                

              
	
                By:

              	 
      	
                /s/Marie
      Haddad

              
	
                Name:         

              	 
      	
                Marie Haddad

              
	Title:	 	
                 Associate
  Director

              

      

       

       

      
        
          	
                  Name of Lender:

                	 
      	
                  
                     

                    
                      UBS
      Loan Finance LLC

                    

                  

                
	
                  By:

                	 
      	
                  /s/Irja
      R. Otsa

                
	
                  Name:         

                	 
      	
                  Irja R. Otsa  

                
	Title:	 	
                   Associate
  Director

                

        

         

         

         

      

    

    
      
        
          Signature
Page to Second Amendment

           

        

         

      

      
        
        

        
          

        

      

      
         

        
           Schedule
I

        

      

    

    Subsidiary
Guarantors

     

    Schedule
I-A

     

    Great
Lakes Window, Inc.

     

    Kroy
Building Products, Inc.

     

    Napco,
Inc.

     

    Variform,
Inc.

     

    MWM
Holding, Inc.

     

    MW
Manufacturers Inc.

     

    AWC
Holding Company

     

    Alenco
Holding Corporation

     

    AWC
Arizona, Inc.

     

    Alenco
Interests, L.L.C.

     

    Alenco
Extrusion Management, L.L.C.

     

    Alenco
Building Products Management, L.L.C.

     

    Alenco
Trans, Inc.

     

    Glazing
Industries Management, L.L.C.

     

    Alenco
Extrusion GA, L.L.C.

     

    Aluminum
Scrap Recycle, L.L.C.

     

    Alenco
Window GA, L.L.C.

     

    Alcoa
Home Exteriors, Inc.

     

    Ply Gem
Pacific Windows Corporation

     

    
      
        
          Signature
Page to Second Amendment

           

        

         

      

      
        
        

        
          

        

      

      
         

        
           Schedule
I

        

      

    

    Schedule
I-B

     

    New
Alenco Extrusion, Ltd.

     

    New
Alenco Window, Ltd.

     

    New
Glazing Industries, Ltd.

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