Document:

Exhibit 10(i) 13th Amendment

THIRTEENTH AMENDMENT TO AMENDED AND
RESTATED LOAN AND SECURITY AGREEMENT

THIS THIRTEENTH AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (“Thirteenth Amendment”) is made as of this 10th day of June, 2011, by and among BANK OF AMERICA, N.A., a national banking association (“Bank of America”) with an office at 135 South LaSalle Street, 4th Floor, Chicago, Illinois 60603, individually as a Lender and as Agent (“Agent”) for itself and any other financial institution which is or becomes a party hereto (each such financial institution, including Bank of America, is referred to hereinafter individually as a “Lender” and collectively as the “Lenders”), the LENDERS and MFRI, INC., a Delaware corporation (“MFRI”), MIDWESCO FILTER RESOURCES, INC., a Delaware corporation (“Midwesco”), PERMA‐PIPE, INC., a Delaware corporation (“Perma‐Pipe”), THERMAL CARE, INC., a Delaware corporation (“Thermal Care”), TDC FILTER MANUFACTURING, INC., a Delaware corporation (“TDC”), MIDWESCO MECHANICAL AND ENERGY, INC., a Delaware corporation (“Mechanical”) and FREEZONE HOLDINGS LIMITED LIABILITY COMPANY, a Delaware limited liability company (“Freezone”) and PERMA-PIPE CANADA, INC., a Delaware corporation (“Perma‐Pipe Canada”).  Capitalized terms used in this Agreement have the meanings assigned to them in Appendix A, General Definitions.  Accounting terms not otherwise specifically defined herein shall be construed in accordance with GAAP consistently applied.  MFRI, Midwesco, Perma‐Pipe, Thermal Care, TDC, Mechanical, Freezone and Perma‐Pipe Canada are sometimes hereinafter referred to individually as a “Borrower” and collectively as “Borrowers”.
WHEREAS, Borrowers (other than Mechanical, Freezone and Perma‐Pipe Canada), Agent, and the Lender signatories thereto hereto entered into that certain Amended and Restated Loan and Security Agreement dated December 15, 2006, as amended by that First Amendment to Amended and Restated Loan and Security Agreement dated February 28, 2007 by and among Borrowers (other than Freezone and Perma‐Pipe Canada), Agent and Lenders, by that certain Second Amendment to Amended and Restated Loan and Security Agreement dated August 28, 2007 by and among Borrowers (other than Freezone and Perma‐Pipe Canada), Agent and Lenders, by that certain Third Amendment to Amended and Restated Loan and Security Agreement dated December 13, 2007 by and among Borrowers (other than Freezone and Perma‐Pipe Canada), Agent and Lenders, by that certain Fourth Amendment to Amended and Restated Loan and Security Agreement dated April 17, 2008 by and among Borrowers (other than Freezone and Perma‐Pipe Canada), Agent and Lenders, by that certain Fifth Amendment to Amended and Restated Loan and Security Agreement dated September 7, 2008 by and among Borrowers (other than Freezone and Perma‐Pipe Canada), Agent and Lenders, by that certain Sixth Amendment to Amended and Restated Loan and Security Agreement dated January 12, 2009 by and among Borrowers (other than Freezone and Perma‐Pipe Canada), Agent and Lenders, by that certain Seventh Amendment to Amended and Restated Loan and Security Agreement dated August 5, 2009 by and among Borrowers (other than Freezone and Perma‐Pipe Canada), Agent and Lenders, by that certain Eighth Amendment to Amended and Restated Loan and Security Agreement dated December 9, 2009 by and among Borrowers, Agent and Lenders, by that certain Ninth Amendment to Amended and Restated Loan and Security Agreement dated April 13, 2010 by and among Borrowers, Agent and Lenders, by that certain Tenth Amendment to Amended and Restated Loan and Security Agreement dated May 11, 2010 by and among Borrowers, Agent and Lenders, by that certain Eleventh Amendment to Amended and Restated Loan and Security Agreement dated October 5, 2010 by and among Borrowers, Agent and Lenders and by that certain Twelfth Amendment to Amended and Restated Loan and Security Agreement dated February 18, 2011 by and among Borrowers, Agent and Lenders (said Amended and Restated Loan and Security Agreement, as amended from time to time, the “Loan Agreement”);
NOW, THEREFORE, in consideration of the following terms and conditions, the parties agreed as follows:

1.Definitions.  Except as otherwise specifically provided for herein, all capitalized terms used herein without definition shall have the meanings contained in the Loan Agreement.
2.Amended Definitions.  The definitions of “Availability Threshold” and “EBITDA” contained in Exhibit 8.3 to the Loan Agreement are hereby deleted and the following are inserted in their stead:

*    *    *
“Availability Threshold - for the following periods within the Term:  (i) commencing May 1, 2011 and ending May 31, 2011, $750,000; (ii) commencing June 1, 2011 and ending June 23, 2011, $1,500,000; (iii) commencing June 24, 2011 and ending July 14, 2011, $2,500,000; (iv) commencing July 15, 2011 and ending September 14, 2011, $3,500,000; and (v) after September 14, 2011, $5,000,000 for each day within the Term during the period commencing each May 1 and ending each January 31 and $3,500,000 for each day within the Term during the period commencing each February 1 and ending each April 30.”
“EBITDA ‐ with respect to any fiscal period, the sum of Consolidated Net Income (Loss) before Interest Expense, income taxes, depreciation and amortization for such period (but excluding any extraordinary gains for such period), plus the amount of any expenses or charges deducted from Consolidated Net Income for the applicable period in connection with the closure and write down of TDC's facility at 1331 South 55th Court, Cicero, Illinois; provided that the aggregate amount of add‐backs to EBITDA as a result of any such charges or expenses shall not exceed $2,500,000, plus the amount of any expenses or charges deducted from Consolidated Net Income for the applicable periods ending on or prior to January 31, 2012 in connection with the closure and write down of Midwesco's South African Subsidiary; provided that the aggregate amount of add‐backs to EBITDA as a result of any such charges or expenses shall not exceed $500,000; plus the amount of any non‐cash expenses or charges deducted from Consolidated Net Income related to management, director or employee equity incentive plans; provided that, to the extent any Borrower incurs any cash expense, charge or expenditure related to such equity incentive plans or repurchases any Security issued under any such equity incentive plan, the amount of such expense, charge, expenditure or repurchase price, to the extent not already deducted from Consolidated Net Income, shall be subtracted from the applicable period's EBITDA, plus, to the extent included in the determination of Consolidated Net Income (Loss), any excise taxes paid in or to India (or any political subdivision thereof) resulting from the repatriation of cash to the United States), all as determined for Borrowers and their Subsidiaries on a Consolidated basis and in accordance with GAAP.”
3.Amendment Fee.  In order to induce Agent and Lenders to amend the definition of Availability Threshold as provided for herein, Borrowers agree to pay Agent for the ratable benefit of Lenders a fee in the amount of $35,000.  Said fee shall be due and payable and deemed fully earned and non‐refundable on the date hereof.
4.Projections and Cash Repatriation.  Borrowers covenant to deliver to Agent on or prior to June 30, 2011, Projections and an Availability forecast on a month by month basis through January 31, 2012.  Borrowers covenant that Borrower Representative shall receive at least $2,535,000 in cash (net of any applicable excise taxes) from its Indian Foreign Subsidiary(ies) on or prior to July 14, 2011.
5.Conditions Precedent.  This Thirteenth Amendment shall become effective upon each of the following:
(i)receipt by Agent of a fully executed copy of this Thirteenth Amendment; and
(ii)payment of the fee referred to in Section 3 above.
6.Governing Law.  This Thirteenth Amendment shall be governed by, and construed in accordance with, the laws of the State of Illinois, without regard to the principles thereof relating to conflict 

of laws.
7.Execution in Counterparts.  This Thirteenth Amendment may be executed in any number of counterparts, which shall, collectively and separately, constitute one Agreement.
8.Continuing Effect.  Except as otherwise provided herein, the Loan Agreement remains in full force and effect.
	
		
	 
	MFRI, INC.

By: /s/ Michael D. Bennett
Name: Michael D. Bennett
Title:  VP CFO

	 
	MIDWESCO FILTER RESOURCES, INC.
By: /s/ Michael D. Bennett
Name: Michael D. Bennett
Title: Vice President

	 
	PERMA‐PIPE, INC.
By: /s/ Michael D. Bennett
Name: Michael D. Bennett
Title: Vice President

	 
	THERMAL CARE, INC.
By: /s/ Michael D. Bennett
Name: Michael D. Bennett
Title: Vice President

	 
	TDC FILTER MANUFACTURING, INC.
By: /s/ Michael D. Bennett
Name: Name: Michael D. Bennett
Title: Vice President

	 
	MIDWESCO MECHANICAL AND ENERGY, INC.
By: /s/ Michael D. Bennett
Name: Michael D. Bennett
Title: Secretary & Treasurer

	 
	FREEZONE HOLDINGS LIMITED LIABILITY COMPANY
By: /s/ Michael D. Bennett
Name: Michael D. Bennett
Title: Secretary & Treasurer

	 
	PERMA-PIPE CANADA, INC.
By: /s/ Michael D. Bennett
Name: Michael D. Bennett
Title: Secretary & Treasurer

	 
	BANK OF AMERICA, N.A., as Agent and as a Lender
By: /s/ Brian Conole    
Name: Brian Conole    
Title: Senior Vice Presidentexh10-22.htm

 

 

 

 

 

 

EXHIBIT 10.22

 

 

 

  

  

  

NOTE AND TRUST DEED MODIFICATION AGREEMENT

OF AUGUST 2008

I.           BACKGROUND:  Effective August 5, 2005, the undersigned Calais Resources, Inc, a British Columbia corporation (“Calais-BC”), and Calais Resources Colorado, Inc, a Nevada corporation (“Calais-CO”) (collectively, the “Calais Companies”) executed a promissory note (the “Note”) in which Calais-BC and Calais-CO promised to pay Duane A. Duffy, Glenn E. Duffy, James Ober, and Luke Garvey (Holders herein) the sum of $807,650.11.  Concurrently, the Calais Companies and the Holders entered into a Security Agreement, pursuant to which the Calais Companies executed a deed of trust encumbering certain real property located in Boulder County, Colorado.  On or about December 15, 2005, the Calais Companies made a principal payment due under the Note in the amount of $166,000.  In March 2007, following a default by the Calais Companies on further payments, the Note was modified and extended to require monthly installment payments of $75,000.00 on the fifteenth (15th) day of each month, beginning April 15, 2007 and continuing until the entire Note balance was paid.  No monthly payments were made by the Calais Companies.  On or about March 31, 2007, the Calais Companies made a further payment of $200,000 on the amount due and payable.  In November 2007, the Calais Companies and the Holders agreed to a further modification of the Note to extend repayment terms through April 1, 2008, pending the expected resolution by the Calais Companies of certain financial issues.  Subsequent to the April Agreement on April 1, 2008 Calais made a payment of $100,000, an additional payment of $50,000 on May 1, 2008, and an additional payment of $25,000 on July 20, 2008.

In the interest of assuring full payment of all principal and interest due under the Note as modified, the Calais Companies and the Holders now agree to revise and amend the terms of the Note further, as follows:

II.           AGREEMENTS OF THE PARTIES:

	
A.     

	
The balance due under the Note as of August 1, 2008 shall be $816,800.07 as set forth on attached Exhibit 1.  Commencing August  1, 2008, interest on the unpaid balance shall accrue at a rate of 15.9 percent per annum through the date on which the unpaid balance is paid in full.

	
B.     

	
The Calais Companies shall make an initial payment of $12,500 on August 1, 2008, and shall thereafter pay, on or before the first day of each of the four succeeding months, commencing September 1, 2008, the sum of $12,500, for a total of $62,500.

	
C.     

	
The Calais Companies shall pay the remainder due and payable under the Note, together with all interest accruing thereon to the date of such payment, on or before December 31, 2008. 

  

  

  

	
D.     

	
The Calais Companies shall pay a loan extension fee of ten percent of the balance due under the Note through the issuance to the Holders of restricted shares of Calais-BC common stock in the aggregate amount of 1,021,000 shares, valued at $0.08 per share, together with an identical number of warrants exercisable at any time within five years of the date of issuance for an exercise price of $0.12 per share.

	
E.     

	
All payments to Holders by the Calais Companies, including the share and warrant issuances described in Paragraph D above, shall be delivered to each Holder directly in accordance with the following allocation:

	
  

	 	
Duane A. Duffy – 40.3746 %

 

	
  

	
Glenn E. Duffy  – 40.3746 %

 

	
  

	
James Ober       --   9.6254 %

 

	
  

	
Luke Garvey     --   9.6254 %

 

Cash payments shall be delivered by wiring the respective funds to each Holder in accordance with instructions to be furnished by electronic mail to David K. Young at DYoung1619@aol.com.

 

All modifications of the Note described herein shall also modify the terms of the deed of trust and security agreement referenced herein.. All other terms of the Note and such deed of trust and security agreement shall remain in full force and effect.

Executed on the dates shown below by:

 

	CALAIS RESOURCES, INC.	 	 	CALAIS RESOURCES COLORADO, INC.	 
	 	 	 	 	 
	 	 	 	 	 
	
By:  _______________________________

	 	 	
By: __________________________

	 
	
        David K. Young

	 	 	
       David K. Young

	 
	
        President and Chief Executive Officer

	 	 	
       President and Chief Executive Officer

	 

STATE OF COLORADO                  )

) ss.

COUNTY OF ____________         ) 

On this ____ day of _______________, 2008, before the undersigned officer, personally appeared David K. Young, who acknowledged himself to be the President and Chief Executive Officer of Calais Resources, Inc. and Calais Resources Colorado, Inc., and who, as such, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing on behalf of each such corporation.

  

  

  

 

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

My Commission Expires:                                                                           ___________________________________

                                                                                                                        Notary Public

_______________________

Duane A. Duffy

________________                                                                      ___________________________________

Date                                                                          Duane A. Duffy

STATE OF COLORADO                  )

) ss.

COUNTY OF ____________         )

The foregoing instrument was acknowledged before me on this _____ day of ________, 2008, by Duane A. Duffy.

My Commission Expires:                                                                           ___________________________________

                                        Notary Public

_____________________

Glenn E. Duffy

__________________________________

Date                                                                       Glenn E. Duffy

 

STATE OF FLORIDA                       )

) ss.

COUNTY OF ____________         ) 

The foregoing instrument was acknowledged before me on this _____ day of ________, 2008, by Glenn E. Duffy.

My Commission Expires:                                                                           ___________________________________

                                       Notary Public

_______________________

  

  

  

Luke Garvey

__________________________________

Date:                                                                           Luke Garvey

 

STATE OF______________          )

) ss.

COUNTY OF ____________         )

The foregoing instrument was acknowledged before me on this _____ day of ________, 2008, by Luke Garvey.

My Commission Expires:                                     ___________________________________

Notary Public

_______________________

James Ober

__________________________________

Date:                                                                           James Ober

 

STATE OF______________          )

) ss.

COUNTY OF ____________         )

The foregoing instrument was acknowledged before me on this _____ day of ________, 2008, by James Ober.

My Commission Expires:                                   ___________________________________

Notary Public

_________________________

  

  

  

Exhibit 1

 

Calculation of Note Principal as of August 1, 2008

 

 

 

	
Item

	
Interest / Day

	
Days

	
Amount

	
New Principal

	
Principal and interest due as of March 31, 2008:

	  	  	  	
$948,396.66

	
Payment - $100,000 on April 1, 2008

	  	  	
$100,000.00

	
848,396.66

	
Per Diem Interest Accruing since April 1, 2008 to May 1, 2008 at 15.9% APR

	
$369.58

	
30

	
11,087.27

	
$859,483.93

	
Payment on May 1, 2008

	  	  	
$50,000.00

	
809,483.93

	
Per Diem Interest Accruing since May 1, 2008 to June 20, 2008 at 15.9% APR

	
$352.62

	
51

	
$17,983.85

	
827,467.78

	
Payment on June 20, 2008

	  	  	
$25,000.00

	
802,467.78

	
Per Diem Interest Accruing since June 20, 2008 to August 1, 2008 at 15.9% APR

	
$349.57

	
41

	
$14,332.29

	
$816,800.07

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