Document:

EX-10.1 AMEND. NO 8 TO RESTATED LOAN AGREEMENT

 

Exhibit 10-1

AMENDMENT NO. 8 TO AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

     AMENDMENT NO. 8 TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT, dated as of May 18, 2006,
by and among Lexington Precision Corporation, a Delaware corporation (“LPC”), Lexington Rubber
Group, Inc., a Delaware corporation (“LRG” and together with LPC, individually, each a “Borrower”
and collectively, “Borrowers”), the parties to the Loan Agreement (as hereinafter defined) as
lenders (each individually, a “Lender” and collectively, “Lenders”) and Wachovia Bank, National
Association, a national banking association, (as successor by merger to Congress Financial
Corporation), in its capacity as agent for Lenders (in such capacity, “Agent”).

WITNESSETH:

     Whereas, Agent, Lenders and Borrowers have entered into financing arrangements pursuant to
which Lenders (or Agent on behalf of Lenders) have made and may make loans and advances to
Borrowers as set forth in the Amended and Restated Loan and Security Agreement, dated December 18,
2003, by and among Borrowers, Agent and Lenders, as amended by Amendment No. 1 to Amended and
Restated Loan and Security Agreement dated as of March 31, 2004, Amendment No. 2 to Amended and
Restated Loan and Security Agreement dated as of August 16, 2004, Amendment No. 3 to Amended and
Restated Loan and Security Agreement dated as of September 3, 2004, Amendment No. 4 to Amended and
Restated Loan and Security Agreement dated as of January 27, 2005, Amendment No. 5 to Amended and
Restated Loan and Security Agreement dated as of June 30, 2005, Amendment No. 6 to Amended and
Restated Loan and Security Agreement dated as of September 30, 2005 and Amendment No. 7 to Amended
and Restated Loan and Security Agreement dated as of November 14, 2005 (as the same now exists and
is amended hereby or may hereafter be further amended, modified, supplemented, extended, renewed,
restated or replaced, the “Loan Agreement”), and other agreements, documents and instruments at any
time executed and/or delivered in connection therewith (all of the foregoing, including the Loan
Agreement, as the same now exist or may hereafter be amended, modified, supplemented, extended,
renewed, restated or replaced, being collectively referred to herein as the “Financing
Agreements”).

     WHEREAS, Borrowers have requested that Agent and Lenders agree to certain amendments to the
Loan Agreement, including an increase in the LRG Term Loan, and Agent and Lenders are willing to
agree to such amendments, subject to the terms and conditions contained herein; and

     WHEREAS, by this Amendment No. 8, Borrowers, Agent and Lenders intend to evidence such
amendments.

     NOW, THEREFORE, in consideration of the foregoing and the mutual agreements and covenants
contained herein, the parties hereto agree as follows:

 

 

SECTION 1. Definitions.

          1.1 Defined Terms. For purposes of this Amendment No. 8, unless otherwise defined
herein, all terms used herein, including, but not limited to, those terms used and/or defined in
the recitals above, shall have the respective meanings assigned to such terms in the Loan
Agreement.

          1.2 Additional Definitions. As used herein, the following terms shall have the
respective meanings given to them below and the Loan Agreement shall be deemed and is hereby
amended to include, in addition and not in limitation, each of the following definitions:

               (a) “Amendment No. 8” shall mean this Amendment No. 8 to Amended and Restated Loan and
Security Agreement by and among Agent, Lenders and Borrowers as the same now exists or may
hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, and the Loan
Agreement shall be deemed and is hereby amended to include, in addition and not in limitation of,
such definition.

               (b) “Third Amended LRG Term Note” shall mean the Third Amended and Restated Term Promissory
Note, dated of even date herewith, made by LRG payable to the order of Agent in the original
principal amount of $7,206,000, as the same now exists or may hereafter be amended, modified,
supplemented, extended, renewed, restated or replaced.

SECTION 2. Amendments to the Loan Agreement.

          2.1 Term Loans. Section 1.135 of the Loan Agreement is hereby deleted in its
entirety and replaced with the following:

“1.135 Term Loans” shall mean, collectively, the term loans made by
or on behalf of Lenders to each Borrower evidenced by the Term Notes
as provided for in Section 2.3 hereof and in Section 3 of Amendment
No. 8; sometimes being referred to herein individually as a “Term
Loan”.

          2.2 Term Notes. Section 1.136 of the Loan Agreement is hereby deleted in its
entirety and replaced with the following:

“1.136 Term Notes” shall mean, collectively, the Second Amended LPC
Term Note and the Third Amended LRG Term Note; sometimes being
referred to herein individually as a “Term Note”.

          2.3 Existing LRG Term Notes. Section 1.53 of the Loan Agreement is hereby deleted in
its entirety and replaced with the following:

“1.53 “Existing LRG Term Notes” shall mean, the Second
Amended and Restated Promissory Note, dated January 27, 2005, in the
original principal amount of $8,456,000 made by LRG, in favor of
Agent.”

2

 

          2.4 Term Loans. Section 2.3 (c) and (d) of the Loan Agreement are hereby deleted in
their entirety and replaced with the following:

(c) Agent, Lenders and LRG are hereby amending and restating the
terms of the outstanding term loans to LRG evidenced by the Existing
LRG Term Notes. LRG hereby acknowledges, confirms and agrees that
as of May 18 2006, the aggregate outstanding principal amount in
respect of the Existing LRG Term Notes is $6,206,000. Subject to
and upon the terms and conditions contained herein, each Lender
severally (and not jointly) agrees to make an additional advance to
LRG in an amount equal to its Pro Rata Share of $1,000,000. Such
advance shall, together with the amount outstanding in respect of
the Existing LRG Term Notes immediately prior thereto, constitute
the Term Loan to LRG (the “LRG Term Loan”), which shall be in the
total principal amount of $7,206,000. The indebtedness of LRG to
Agent and Lenders arising pursuant to the LRG Term Loan and
including the additional advance provided for herein is hereby
amended and restated as set forth in the LRG Term Note. The terms
of the LRG Term Loan, including the additional advance described
above, shall be set forth in the Third Amended LRG Term Note and
evidenced thereby and shall together constitute part of the Term
Loans.

(d) The LRG Term Loan is (a) evidenced by the Third Amended LRG
Term Note in such original principal amount duly executed and
delivered by LRG to Agent concurrently with the execution of
Amendment No.8 and shall constitute part of the Term Loans; (b) to
be repaid, together with interest and other amounts, in accordance
with this Agreement and the Third Amended LRG Term Note and (c)
secured by all of the Collateral. The principal amount of the LRG
Term Loan shall be repaid in fourteen (14) consecutive monthly
installments (or earlier as provided herein), of which the first
thirteen (13) installments shall payable on the first day of each
month commencing June 1, 2006 and shall be in the amount of $150,000
and the last installment due on June 30, 2007, shall be in the
amount of the entire unpaid balance of the LRG Term Loan. LRG may
not reborrow any principal amounts prepaid pursuant to the Third
Amended LRG Term Note. The amendment and restatement contained
herein, including, without limitation, the amendment and restatement
of the LRG Term Note, shall not, in any manner, be construed to
constitute payment of, or impair, limit, cancel or extinguish, or
constitute a novation in respect of, the Obligations evidenced by or
arising under the Financing Agreements, and the liens and security
interests securing such Obligations shall not in any manner be
impaired, limited, terminated, waived or released.”

3

 

SECTION 3. Representations and Warranties. Borrowers, jointly and severally, represent and
warrant with and to Agent and Lenders, which representations and warranties are continuing and
shall survive the execution and delivery hereof, the truth and accuracy of, or compliance with
each, together with the representations, warranties and covenants in the other Financing
Agreements, being a continuing condition of the making of any Loans by Lenders to Borrowers, that
Amendment No. 8 has been duly executed and delivered by Borrowers and is in full force and effect
as of the date hereof and the agreements and obligations of Borrowers contained herein constitute
legal, valid and binding obligations of Borrowers enforceable against Borrowers in accordance with
their respective terms.

SECTION 4. Amendment Fee. In addition to all other fees, charges, interest and expenses
payable by Borrowers to Agent and Lenders under the Loan Agreement and the other Financing
Agreements, Borrowers shall pay to Agent for the ratable account of Lenders, contemporaneously with
the effectiveness of this Amendment No. 8, an amendment fee in the amount of $25,000, which fee
shall be fully earned and nonrefundable as of the date hereof and may be charged to any loan
account of Borrowers.

SECTION 5. Conditions Precedent. This Amendment No. 8 shall be effective as of the date
hereof but only upon the satisfaction of each of the following conditions precedent in a manner
satisfactory to Agent:

          5.1 Agent shall have received an original of this Amendment No. 8, duly authorized, executed
and delivered by each Borrower;

          5.2 Agent shall have received the fee referred to in Section 4 hereof;

          5.3 Agent shall have received an original Third Amended LRG Term Note, dated of even date
herewith, made by LRG payable to the order of Agent in the original principal amount of
$7,206,000, duly authorized, executed and delivered by LRG;

          5.4 Agent shall have received, in form and substance satisfactory to Agent, a consent to the
transactions set forth in this Amendment No. 8 duly authorized, executed and delivered by Ableco,
as Term Loan Lender and an amendment to the Intercreditor Agreement between Agent and Term Loan
Lender, in form and substance satisfactory to Agent;

          5.5 Agent shall have received, in form and substance satisfactory to Agent, a consent to the
transactions set forth in this Amendment No. 8 duly authorized, executed and delivered by
Cohanzick High Yield Partners, L.P.; and

          5.6 no Default or Event of Default shall exist or have occurred and be continuing (after
giving effect to the amendments and waivers set forth in this Amendment No. 8).

SECTION 6. General.

          6.1 Except as modified pursuant hereto, no other changes or modifications to the Financing
Agreements are intended or implied and in all other respects the Financing Agreements are hereby
specifically ratified, restated and confirmed by all parties hereto as of

4

 

the date hereof. To the extent of conflict between the terms of this Amendment No. 8 and the
Financing Agreements, the terms of this Amendment No. 8 shall control.

          6.2 The parties hereto shall execute and deliver such additional documents and take such
additional actions as may be necessary to effectuate the provisions and purposes of this Amendment
No. 8.

          6.3 The rights and obligations hereunder of each of the parties hereto shall be governed by
and interpreted and determined in accordance with the laws of the State of New York, but excluding
any principles of conflicts of law or other rule of law that would result in the application of
the law of any jurisdiction other than the laws of the State of New York.

          6.4 This Amendment No. 8 is binding upon and shall inure to the benefit of Agent, Lenders and
Borrowers and their respective successors and assigns.

          6.5 This Amendment No. 8 may be executed in one or more counterparts, each of which when so
executed shall be deemed to be an original but all of which when taken together shall constitute
one and the same instrument. In making proof of this Amendment No. 8, it shall not be necessary
to produce or account for more than one counterpart hereof signed by each of the parties hereto.
Delivery of an executed counterpart of this Amendment No. 8 by telefacsimile shall have the same
force and effect as delivery of an original executed counterpart of this Amendment No. 8. Any
party delivering an executed counterpart of this Amendment No. 8 by telefacsimile also shall
deliver an original executed counterpart of this Amendment No. 8, but the failure to deliver an
original executed counterpart shall not affect the validity, enforceability, and binding effect of
this Amendment No. 8 as to such party or any other party.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

5

 

     IN WITNESS WHEREOF, Agent, Lenders and Borrowers have caused this Amendment No. 8 to be duly
executed as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	LEXINGTON PRECISION CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Warren Delano
 

	 	 
	 
	 	 	 	 	 	 
	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	LEXINGTON RUBBER GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Warren Delano
 

	 	 
	 
	 	 	 	 	 	 
	 	 	Title: President	 	 

AGREED:

WACHOVIA BANK, NATIONAL ASSOCIATION,

successor by merger to Congress Financial Corporation,

as Agent and Lender

	 	 	 	 	 
	By: 

	/s/ Herbert C. Korn
 

	 	 
	 
	 	 	 	 
	Title: VP

	 	 

ABLECO FINANCE LLC, on behalf of itself and

its affiliate assigns, as Lender

	 	 	 	 	 
	By: 

	/s/ Dan Wolf
 

	 	 
	 
	 	 	 	 
	Title:

	SVPEX-10.2 3RD AMEND. TO RESTATED TERM PROMISS. NOTE

 

Exhibit 10-2

THIRD AMENDED AND RESTATED

TERM PROMISSORY NOTE

	 	 	 
	$7,206,000

	 	New York, New York
	 

	 	May 18, 2006

     FOR VALUE RECEIVED, LEXINGTON RUBBER GROUP, INC., a Delaware corporation (the “Debtor”),
hereby unconditionally promises to pay to the order of WACHOVIA BANK, NATIONAL ASSOCIATION (as
successor by merger to Congress Financial Corporation), a national banking association, in its
capacity as agent pursuant to the Loan Agreement (as hereinafter defined) acting for and on behalf
of the parties to the Loan Agreement as lenders (in such capacity, “Payee”), at the offices of Payee at 1133 Avenue of the
Americas, New York, New York 10036, or at such other place as the Payee or any holder hereof may
from time to time designate, the principal sum of SEVEN MILLION TWO HUNDRED SIX THOUSAND DOLLARS
($7,206,000) in lawful money of the United States of America and in immediately available funds, in
fourteen (14) consecutive monthly installments (or earlier as provided herein), of which the first
thirteen (13) installments shall payable on the first day of each month commencing June 1, 2006 and
shall be in the amount of ONE HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($150,000), and the last
installment due on June 30, 2007, shall be in the amount of the entire unpaid balance of this
Note.

     Debtor hereby further promises to pay interest to the order of Payee on the unpaid principal
balance hereof at the Interest Rate. Such interest shall be paid in like money at said office or
place from the date hereof, commencing June 1, 2006 and on the first day of each month thereafter
until the indebtedness evidenced by this Note is paid in full. Interest payable upon and after an
Event of Default or termination or non-renewal of the Loan Agreement shall be payable upon demand.

     For
purposes hereof, (a) subject to clause (i) below, the term “Interest Rate” shall mean, a
rate equal to four and three quarters(4 3/4 %) percent per annum in excess of the Prime Rate
(determined as provided in the Loan Agreement); provided, that, (i) notwithstanding
anything to the contrary contained above, the Interest Rate shall mean the rate of six and
three-quarters (6 3/4%) percent per annum in excess of the Prime Rate, at Payee’s option, without
notice, (A) either (1) for the period on and after the date of termination or non-renewal hereof
until such time as all Obligations are indefeasibly paid and satisfied in full in immediately
available funds, or (2) for the period from and after the date of the occurrence of any Event of
Default, and for so long as such Event of Default is continuing as
determined by Payee, (b) the
term “Prime Rate” shall mean the rate from time to time publicly announced by Wachovia Bank,
National Association, or its successors, as its prime rate, whether or not such announced rate is
the best rate available at such bank, (c) the term “Event of Default” shall mean an Event of
Default as such term is defined in the Loan Agreement, and (d) the term “Loan Agreement” shall
mean the Amended and Restated Loan and Security Agreement, dated of even date herewith, by and
among Payee, the lenders party thereto, Debtor and Lexington Precision Corporation, as the same now
exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or
replaced. Unless otherwise defined herein, all capitalized terms used herein shall

 

 

have the meaning assigned thereto in the Loan Agreement.

     The Interest Rate applicable to the Term Loans payable hereunder shall increase or decrease as
to by an amount equal to each increase or decrease, respectively, in the Prime Rate, effective on
the first day of the month after any change in the Prime Rate is announced. The increase or
decrease shall be based on the Prime Rate in effect on the last day of the month in which any such
change occurs. Interest shall be calculated on the basis of a three hundred sixty (360) day year
and actual days elapsed. In no event shall the interest charged hereunder exceed the maximum
permitted under the laws of the State of New York or other applicable law.

     This Note is issued pursuant to the terms and provisions of the Loan Agreement to evidence the
LRG Term Loan made by Payee to Debtor and to amend and restate the Existing LRG Term Notes, and as
so amended and restated, the Existing LRG Term Notes are replaced and superseded by this Note in
their entirety. Debtor is, as of the date hereof, indebted to Payee in the principal amount of
this Note, together with interest accruing after the date hereof, without
offset, defense or counterclaim of any kind, nature or description whatsoever. The
substitution and replacement of the Existing LRG Term Notes shall not, in any manner, be construed
to constitute payment of the unpaid indebtedness and other obligations and liabilities of Debtor
evidenced by or arising under the Existing LRG Term Notes.

     This Note is secured by the Collateral described in the Loan Agreement and the other Financing
Agreements, and is entitled to all of the benefits and rights thereof and of the other Financing
Agreements. At the time any payment is due hereunder, at its option, Payee may charge the amount
thereof to any account of Debtor maintained by Payee.

     If any payment of principal or interest is not made when due hereunder, or if any other Event
of Default shall occur for any reason, or if the Loan Agreement shall be terminated or not renewed
for any reason whatsoever, then and in any such event, in addition to all rights and remedies of
Payee under the Financing Agreements, applicable law or otherwise, all such rights and remedies
being cumulative, not exclusive and enforceable alternatively, successively and concurrently, Payee
may, at its option, declare any or all of Debtor’s Obligations, including, without limitation, all
amounts owing under this Note, to be due and payable in accordance with the terms of the Loan
Agreement, whereupon the then unpaid balance hereof, together with all interest accrued thereon,
shall forthwith become due and payable, together with interest accruing thereafter at the then
applicable Interest Rate stated above until the Obligations are paid in full.

     Debtor (i) waives diligence, demand, presentment, protest and notice (except as otherwise
expressly provided in Section 10.2 of the Loan Agreement) of any kind, (ii) agrees that it will not
be necessary for Payee to first institute suit in order to enforce payment of this Note and (iii)
consents to any one or more extensions or postponements of time of payment, release, surrender or
substitution of collateral security, or forbearance or other indulgence, without notice or consent.
The pleading of any statute of limitations as a defense to any demand against Debtor is hereby
expressly waived by Debtor. Upon any Event of Default or termination or non-renewal of the Loan
Agreement, Payee shall have the right, but not the obligation to setoff against this Note all money
owed by Payee to Debtor.

     Payee shall not be required to resort to any Collateral for payment, but may proceed against
Debtor and any guarantors or endorsers hereof in such order and manner (consistent with the terms
of the Loan Agreement) as Payee may choose. None of the rights of Payee shall be

2

 

waived or diminished by any failure or delay in the exercise thereof.

     The validity, interpretation and enforcement of this Note and the other Financing Agreements
and any dispute arising in connection herewith or therewith shall be governed by the internal laws
of the State of New York, but excluding any principles of conflicts of law or other rule of law
that would result in the application of the law of any jurisdiction other than the laws of the
State of New York.

     Debtor irrevocably consents and submits to the non-exclusive jurisdiction of the Supreme Court
of the State of New York for New York County and the United States District Court for the Southern
District of New York, whichever Payee may elect, and waives any objection based on venue or
forum non conveniens with respect to any action instituted therein arising
under this Note or any of the other Financing Agreements or in any way connection with or related
or incidental to the dealings of Debtor and Payee in respect of this Note or any of the other
Financing Agreements or the transactions related hereto or thereto, in each case whether now
existing or hereafter arising, and whether in contract, tort, equity or otherwise, and agrees that
any dispute arising out of the relationship between Debtor and Payee or the conduct of such persons
in connection with this Note or otherwise shall be heard only in the courts described above (except
that Payee shall have the right to bring any action or proceeding against Debtor or its property in
the courts of any other jurisdiction which Payee deems necessary or appropriate in order to realize
on the Collateral or to otherwise enforce its rights against Debtor or its property).

     Debtor hereby waives personal service of any and all process upon it and consents that all
such service of process may be made by certified mail (return receipt requested) directed to it and
service so made shall be deemed to be completed five (5) days after the same shall have been so
deposited in the U.S. mails, or, at Payee’s option, by service upon Debtor in any other manner
provided under the rules of any such courts. Within thirty (30) days after such service, Debtor
shall appear in answer to such process, failing which Debtor shall be deemed in default and
judgment may be entered by Payee against Debtor for the amount of the claim and other relief
requested.

     DEBTOR HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION (i) ARISING UNDER THIS NOTE OR (ii) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO
THE DEALINGS BETWEEN DEBTOR AND PAYEE IN RESPECT OF THIS NOTE OR ANY OF THE OTHER FINANCING
AGREEMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. DEBTOR AGREES AND CONSENTS
THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A
JURY.

3

 

     This Note shall be binding upon the successors and assigns of Debtor and inure to the benefit
of Payee and its successors, endorsees and assigns. Whenever used herein, the term “Debtor” shall
be deemed to include its successors and assigns and the term “Payee” shall be deemed to include its
successors, endorsees and assigns. If any term or provision of this Note shall be held invalid,
illegal or unenforceable, the validity of all other terms and provisions hereof shall in no way be
affected thereby.

	 	 	 	 	 	 	 
	 	 	LEXINGTON RUBBER GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Warren Delano
 

	 	 
	 
	 	 	 	 	 	 
	 	 	Title: President	 	 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]