Document:

Exhibit 10.35

 

EIGHTH AMENDMENT

TO AMENDED AND RESTATED FINANCING AGREEMENT

 

THIS EIGHTH AMENDMENT TO AMENDED AND RESTATED
FINANCING AGREEMENT (this “Amendment”) is made and entered into
effective as of August 23, 2004, by and among THE CIT GROUP/BUSINESS CREDIT,
INC. a New York corporation (hereinafter “CITBC”), in its individual
capacity and as Agent (hereinafter the “Agent”) for itself and the
Lenders hereafter named, WELLS FARGO
FOOTHILL, INC.,  a California
corporation formerly known as Foothill
Capital Corporation (“FCC”), CONGRESS FINANCIAL CORPORATION
(SOUTHWEST), a Texas corporation (“CFC”), LASALLE BANK NATIONAL
ASSOCIATION, a national banking association (“LaSalle”), and any other
party hereafter becoming a Lender pursuant to Section 13 of the Agreement (as
hereinafter defined), each individually sometimes referred to as a “Lender”
and collectively the “Lenders”), LONE STAR TECHNOLOGIES, INC., a
Delaware corporation (herein “Parent”), LONE STAR STEEL COMPANY, a
Delaware corporation (herein “LSSC”), FINTUBE TECHNOLOGIES, INC., an
Oklahoma corporation (herein “FTI”), LONE STAR LOGISTICS, INC., a Texas
corporation (“Logistics”), STAR TUBULAR SERVICES, INC., a Texas
corporation formerly known as T&N Lone Star Warehouse Co. (“Star Tubular”),
TEXAS & NORTHERN RAILWAY COMPANY, a Texas corporation (“T&N Railway”),
FINTUBE CANADA, INC., a Delaware corporation (“FCI”), BELLVILLE TUBE
COMPANY, L.P., a Texas limited partnership, as successor in interest by
conversion to Bellville Tube Corporation, a Texas corporation (“BTCLP”),
WHEELING MACHINE PRODUCTS, L.P., a Texas limited partnership, successor in
interest by conversion to Wheeling Machine Products, Inc., formerly known as
Wheeling Acquisition Corporation and Star Tubular Technologies (Houston), Inc.
(“Wheeling”), STAR CAPITAL FUNDING, INC., a Delaware corporation (“Star
Capital”), DELTA TUBULAR PROCESSING, L.P., a Texas limited partnership,
successor in interest by conversion to Delta Tubular Processing, Inc., formerly
known as Delta Lone Star Acquisition, Inc. (“Delta Processing”), and
DELTA TUBULAR INTERNATIONAL, L.P., a Texas limited partnership, successor in
interest by conversion to Delta Tubular International, Inc., formerly known as
Star Tubular International. Inc., a Texas corporation (“Delta International”)  (herein Parent, LSSC, FTI, Logistics, Star
Tubular, T&N Railway, FCI, BTCLP, Wheeling, Star Capital, Delta Processing
and Delta International each individually a “Company” and collectively
as the “Companies”), ENVIRONMENTAL HOLDINGS, INC., a Delaware
corporation (“EHI”), ZINKLAHOMA, INC., a Delaware corporation (“Zinklahoma”),
LONE STAR STEEL INTERNATIONAL, INC., a Delaware corporation (“Steel
International”), LONE STAR STEEL SALES COMPANY, a Delaware corporation (“Steel
Sales”), ROTAC, INC., a Texas corporation (“Rotac”), LONE STAR ST
HOLDINGS, INC., a Delaware corporation (“ST Holdings”), BELLVILLE TUBE
GENERAL, LLC, a Nevada limited liability company (“BTG”), LONE STAR
NEVADA HOLDINGS, LLC, a Nevada limited liability company, formerly known as
Bellville Tube Limited, LLC (“Nevada Holdings”), STAR TUBULAR TECHNOLOGIES,
INC., a Delaware corporation (“STT”), WHEELING MACHINE PRODUCTS GENERAL,
LLC, a Nevada limited liability company (“Wheeling General”), DELTA
TUBULAR PROCESSING GENERAL, LLC, a Nevada limited liability company (“Delta
Processing General”), DELTA TUBULAR INTERNATIONAL GENERAL, LLC, a Nevada
limited liability company (“Delta International General”), STAR TUBULAR

 

1

 

TECHOLOGIES (YOUNGSTOWN), INC., an Ohio corporation (“STT
Ohio”) and STAR ENERGY GROUP, LLC, a Delaware limited liability company (“SEG”)
(herein EHI, Zinklahoma, Steel International, Steel Sales, Rotac, ST Holdings,
BTG, Nevada Holdings, STT, Wheeling General, Delta Processing General, Delta
International General, STT Ohio and SEG, each individually as “Guarantor”
and collectively as the “Guarantors”) and LONE STAR STEEL MEXICO, LLC, a
Texas limited liability company (“LSSM” or the “New Guarantor”).

 

RECITALS:

 

A.            WHEREAS, pursuant to
the terms and subject to the conditions of that certain Amended and Restated
Financing Agreement dated as of October 8, 2001 between the Agent, the
Companies and the Guarantors (such Amended and Restated Financing Agreement, as
the same is hereby amended and may hereafter be amended from time to time,
being hereinafter referred to as the “Agreement”), the Companies were
granted a $125,000,000 revolving line of credit which included a letter of
credit facility;

 

B.            WHEREAS, payment of
the Obligations of the Companies is supported by (a) the guaranties of the
Guarantors (other than BTG, BTL, STT, Wheeling General, Delta Processing
General, Delta International General and STT Ohio) pursuant to that certain
Guaranty dated as of October 8, 2001 executed by the Guarantors (other than
BTG, BTL, STT, Wheeling General, Delta Processing General, Delta International
General and STT Ohio), (b) the guaranties of BTG and BTL pursuant to that
certain Guaranty dated as of December 31, 2001 executed by BTG and BTL, (c) the
guarantee of STT pursuant to that certain Guaranty dated as of September 30,
2002 executed by STT, (d) the guarantee of Wheeling General, Delta Processing
General, Delta International General and STT Ohio pursuant to that certain
Guaranty dated August 29, 2003, and (e) the guarantee of SEG
pursuant to that certain Guaranty dated December 16, 2003
(collectively, the “Guaranties”);

 

C.            WHEREAS, to secure,
in part, the Obligations (as defined in the Agreement), the Companies and the
Guarantors have heretofore executed in favor of the Agent certain Loan
Documents (as defined in the Agreement), including, without limitation, the
Guaranties, which Loan Documents shall continue in full force and effect upon
the execution of this Amendment, all of the Loan Documents to continue to
secure the payment by the Companies of the Obligations, all as more fully set
forth therein and herein;

 

D.            WHEREAS,
the Companies have requested and, pursuant to the terms and subject to the
conditions hereof and in connection herewith, the Agent and the Lenders have
agreed to increase the Letter of Credit Sub-Line (as defined in the Agreement)
to $20,000,000 and add LSSM as a Guarantor and Obligor under the Loan
Agreement;

 

E.             WHEREAS, in
furtherance of the foregoing and to evidence the agreements of the parties
hereto in relation thereto the parties hereto desire to amend the Agreement as
hereinafter provided;

 

2

 

NOW, THEREFORE, in consideration of the premises
herein contained and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties, intending to be
legally bound, agree as follows:

 

AGREEMENT:

 

ARTICLE I

DEFINITIONS

 

1.01        Capitalized
terms used in this Amendment are defined in the Agreement, as amended hereby,
unless otherwise stated.

 

ARTICLE II

AMENDMENTS TO AGREEMENT

 

Effective as of the
respective date herein indicated, the Agreement is hereby amended as follows:

 

2.01        Amendment and Restatement of Definition of “Letter of Credit
Sub-Line”.  Effective
as of the date of execution of this Amendment, the definition of “Letter of Credit Sub-Line” set forth
in Section 1 of the Agreement is amended and restated to read in its entirety
as follows:

 

“Letter of
Credit Sub-Line shall mean the aggregate amount of $20,000,000
consisting of a line for standby Letters of Credit and for documentary Letters
of Credit.”

 

2.02        Amendment
of Schedules.  Effective
as of the date hereof, Schedules 1, 7(1), 7(14)(f), 7(14)(g), 7(14)(l),
7(14)(o) and 7(14)(p) of the Agreement are amended to add to such Schedules the
information requested thereon with respect to the New Guarantor, such additions
to such Schedules being described on Exhibit A attached hereto

 

ARTICLE III

ASSUMPTION OF OBLIGATIONS AND GRANT OF LIENS

 

3.01        Assumption of Obligations and Grant of Lien by SEG.  Effective as of the date of this Amendment,
LSSM agrees (a) to be a Guarantor and Obligor under the Agreement and

 

3

 

under that certain Subordination Agreement dated
October 8, 2001 executed by the Companies and the Guarantors for the
benefit of Agent and the other Lenders (the “Subordination Agreement”),
(b) to be bound by the terms and provisions of the Agreement as a Guarantor and
Obligor thereunder and to be bound by the terms of the Subordination Agreement
as a Guarantor and Obligor thereunder to the same extent and with the same
force and effect as if LSSM had been originally named as a party in each of
such documents, (c) to assume all covenants, agreements and duties as a
Guarantor and Obligor under the Agreement and as a Guarantor and Obligor under
the Subordination Agreement, and (d) to execute and deliver to CIT concurrently
with the execution hereof, a guaranty agreement (in form and substance
satisfactory to Agent) guaranteeing the prompt payment and performance of all
of the Obligations.   LSSM hereby also
grants to Agent for the benefit of the Lenders a security interest in all
Collateral now or hereafter owned by SEG pursuant to the terms of Section 6 of
the Agreement.  LSSM authorizes Agent to
file financing statements covering the Collateral in an authenticated record
without its signature and ratify any such filings made prior to the date hereof
by Agent.

 

ARTICLE IV

CONDITIONS PRECEDENT

 

4.01        Conditions to Effectiveness. 
The effectiveness of this Amendment is subject to the satisfaction of
the following conditions precedent in a manner satisfactory to Agent, unless
specifically waived in writing by Agent:

 

(a)           Agent shall have received each of the
following, each in form and substance satisfactory to Agent, in its sole
discretion, and, where applicable, each duly executed by each party thereto,
other than Agent:

 

(i)            This Amendment, duly executed by
Companies, the Guarantor and the New Guarantor;

 

(ii)           Pledge Agreement duly signed by Steel
International pledging all of its membership interests in LSSM;

 

(iii)          Pledge
Agreement duly signed by LSSM pledging all of its ownership interests in Lone
Star Steel International de Mexico S DE
R.L. de C.V.;

 

(iv)          A Guaranty duly signed by LSSM;

 

(v)           Opinion from Fulbright & Jaworski
L.L.P. opining, in form and substance satisfactory to Agent, which shall cover
such matters incident to the transactions contemplated by this Amendment as Agent
may reasonably require and the Companies, the Guarantors and LSSM hereby
authorize and direct such counsel to deliver such opinions to Agent;

 

4

 

(vi)          Certified copies of the resolutions of
the Board of Directors, Board of Managers or Executive Committee of each of the
Companies, the Guarantors and SEG, authorizing the execution, delivery and
performance of this Amendment and any and all other Loan Documents executed by
any of the Companies, the Guarantors or SEG in connection therewith, along with
a certificate of incumbency certified by the secretary of SEG, and, if there
has been any change from the most recent incumbency certificates delivered by
any of the Companies or the Guarantors, a certificate of incumbency certified
by the secretary of each of the Companies and each of the Guarantors, with
specimen signatures of the officers of the Companies, the Guarantors and SEG
who are authorized to sign such documents, all in form and substance
satisfactory to the Agent;

 

(vii)         Evidence satisfactory to the Agent that
casualty insurance policies of all Companies and Guarantors listing Agent as
loss payee or additional insured, as the case may be, have been amended to
cover the New Guarantor as well as all Companies and all Guarantors, and are in
full force and effect, in form and substance satisfactory to Agent; and

 

(viii)        All other documents Agent may request
with respect to any matter relevant to this Amendment or the transactions
contemplated hereby.

 

(b)           The representations and warranties
contained herein and in the Agreement and the other documents executed in
connection with the Agreement (herein referred to as “Loan Documents”),
as each is amended hereby, shall be true and correct as of the date hereof, as
if made on the date hereof, except for such representations and warranties as
are by their express terms limited to a specific date.

 

(c)           No Default or Event of Default shall
have occurred and be continuing, unless such Default or Event of Default has been
otherwise specifically waived in writing by Agent.

 

(d)           All corporate proceedings taken in
connection with the transactions contemplated by this Amendment and all
documents, instruments and other legal matters incident thereto shall be
satisfactory to Agent.

 

ARTICLE V

NO WAIVER

 

5.01        No Waiver.  Nothing contained herein shall be construed
as a waiver by Agent of any covenant or provision of the Agreement, the other
Loan Documents, this Amendment or any other contract or instrument between the
Obligors and Agent, and the failure of Agent at any time or times hereafter to
require strict performance by the Obligors of any provision thereof shall not
waive,

 

5

 

affect or diminish any right of Agent to thereafter demand strict
compliance therewith. Agent hereby reserves all rights granted under the
Agreement, the other Loan Documents, this Amendment, and any other contract or
instrument between the Obligors and Agent.

 

ARTICLE VI

RATIFICATIONS, REPRESENTATIONS AND WARRANTIES

 

6.01        Ratifications.  The terms and provisions set forth in this
Amendment shall modify and supersede all inconsistent terms and provisions set
forth in the Agreement and the other Loan Documents, and, except as expressly
modified and superseded by this Amendment, the terms and provisions of the
Agreement and the other Loan Documents are ratified and confirmed and shall
continue in full force and effect.  The
Companies, the Guarantors and Agent agree that the Agreement and the other Loan
Documents, as amended hereby, shall continue to be legal, valid, binding and
enforceable in accordance with their respective terms.

 

6.02        Representations and Warranties.
The Companies and the Guarantors hereby represent and warrant to Agent that (a)
the execution, delivery and performance of this Amendment and any and all other
Loan Documents executed and/or delivered in connection herewith have been
authorized by all requisite corporate or limited partnership or limited
liability company action (as applicable) on the part of the Companies and the
Guarantors and will not violate the Articles (or Certificates) of Incorporation
or Bylaws of the Companies and the Guarantors that are corporations or the
limited partnership agreements or certificates of limited partnership of the
Companies and the Guarantors that are limited partnerships or the articles of
formation/organization, regulations or limited liability company agreements of
the Companies that are limited liability companies; (b) each of the Company’s
and Guarantor’s Board of Directors or Executive Committee (or the general
partner of the applicable limited partnership) or the members or the Board of
Managers of the applicable limited liability company has authorized the
execution, delivery and performance of this Amendment and any and all other
Loan Documents executed and/or delivered in connection herewith; (c) the
representations and warranties contained in the Agreement, as amended hereby,
and any other Loan Document are true and correct on and as of the date hereof
and on and as of the date of execution hereof as though made on and as of each
such date; (d) no Default or Event of Default under the Agreement, as amended
hereby, has occurred and is continuing, unless such Default or Event of Default
has been specifically waived in writing by Agent; (e) the Companies and the
Guarantors are in full compliance with all covenants and agreements contained
in the Agreement and the other Loan Documents, as amended hereby; and (f) the
Companies and the Guarantors have not amended their Articles (or Certificates)
of Incorporation or their Bylaws or similar organizational documents since the
date of the Agreement, except as otherwise disclosed to Agent.

 

ARTICLE VII

MISCELLANEOUS PROVISIONS

 

7.01        Survival of Representations and
Warranties.  All
representations and warranties made in the Agreement or any other Loan
Document, including, without limitation, any 
document furnished in connection with this Amendment, shall survive the
execution and

 

6

 

delivery of this Amendment and the other Loan Documents, and no
investigation by Agent or any closing shall affect the representations and
warranties or the right of Agent to rely upon them.

 

7.02        Reference to Agreement.  Each of the Agreement and the other Loan
Documents, and any and all other Loan Documents, documents or instruments now
or hereafter executed and delivered pursuant to the terms hereof or pursuant to
the terms of the Agreement, as amended hereby, are hereby amended so that any
reference in the Agreement and such other Loan Documents to the Agreement shall
mean a reference to the Agreement, as amended hereby.

 

7.03        Expenses of Agent.  As provided in the Agreement, Companies agree
to pay on demand all costs and expenses incurred by Agent in connection with
the preparation, negotiation, and execution of this Amendment and the other
Loan Documents executed pursuant hereto and any and all amendments,
modifications, and supplements thereto, including, without limitation, the costs
and fees of Agent’s legal counsel, and all costs and expenses incurred by Agent
in connection with the enforcement or preservation of any rights under the
Agreement, as amended hereby, or any other Loan Documents, including, without,
limitation, the costs and fees of Agent’s legal counsel.

 

7.04        Severability.  Any provision of this Amendment held by a
court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provision so held to be invalid or unenforceable.

 

7.05        Successors and Assigns.  This Amendment is binding upon and shall
inure to the benefit of Agent and Companies and their respective successors and
assigns, except that Companies may not assign or transfer any of their rights
or obligations hereunder without the prior written consent of Agent.

 

7.06        Counterparts.  This Amendment 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.

 

7.07        Effect of Waiver.  No consent or waiver, express or implied, by
Agent to or for any breach of or deviation from any covenant or condition by
Companies shall be deemed a consent to or waiver of any other breach of the
same or any other covenant, condition or duty.

 

7.08        Headings.  The headings, captions, and arrangements used
in this Amendment are for convenience only and shall not affect the
interpretation of this Amendment.

 

7.09        Applicable Law.  THIS AMENDMENT AND ALL OTHER LOAN DOCUMENTS
EXECUTED PURSUANT HERETO SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE
PERFORMABLE IN AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.

 

7

 

7.10        Final Agreement.  THE AGREEMENT AND THE OTHER LOAN DOCUMENTS,
EACH AS AMENDED HEREBY, REPRESENT THE ENTIRE EXPRESSION OF THE PARTIES WITH
RESPECT TO THE SUBJECT MATTER HEREOF ON THE DATE THIS AMENDMENT IS
EXECUTED.  THE AGREEMENT AND THE OTHER
LOAN DOCUMENTS, AS AMENDED HEREBY, MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS
BETWEEN THE PARTIES.  NO MODIFICATION,
RESCISSION, WAIVER, RELEASE OR AMENDMENT OF ANY PROVISION OF THIS AMENDMENT
SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED BY COMPANIES AND AGENT.

 

7.11        Release by the Companies.
THE COMPANIES HEREBY ACKNOWLEDGE THAT THEY HAVE NO DEFENSE, COUNTERCLAIM,
OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT
CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO
REPAY THE “OBLIGATIONS” OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR
NATURE FROM AGENT.  THE COMPANIES HEREBY
VOLUNTARILY AND KNOWINGLY RELEASE AND FOREVER DISCHARGE AGENT, THE OTHER
LENDERS, AND THEIR RESPECTIVE PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND
ASSIGNS (COLLECTIVELY, THE “RELEASED PARTIES”), FROM ALL POSSIBLE CLAIMS,
DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES
WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR
UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY,
ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS
EXECUTED, WHICH THE COMPANIES MAY NOW OR HEREAFTER HAVE AGAINST THE RELEASED
PARTIES, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF
CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM
ANY “LOANS”, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING,
TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST
LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE
AGREEMENT OR OTHER LOAN DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS
AMENDMENT.

 

7.12        Release by the Guarantors.  Each Guarantor hereby consents to the terms
of this Amendment, confirms and ratifies the terms of the Guaranty executed by
such Guarantor, acknowledges that such Guaranty is in full force and effect and
ratifies the same, and acknowledges that such Guarantor has no defense,
counterclaim, set-off or any other claim to diminish such Guarantor’s liability
under such document. THE GUARANTORS EACH HEREBY VOLUNTARILY AND KNOWINGLY
RELEASES AND FOREVER DISCHARGES THE RELEASED PARTIES, FROM ALL POSSIBLE CLAIMS,
DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES
WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED,
FIXED, CONTINGENT, OR CONDITIONAL, AT LAW

 

8

 

OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE
THIS AMENDMENT IS EXECUTED, WHICH THE GUARANTORS MAY NOW OR HEREAFTER HAVE
AGAINST THE RELEASED PARTIES, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH
CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR
OTHERWISE, AND ARISING FROM ANY “LOANS”, INCLUDING, WITHOUT LIMITATION, ANY
CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST
IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND
REMEDIES UNDER THE LOAN AGREEMENT OR OTHER CREDIT DOCUMENTS, AND NEGOTIATION
FOR AND EXECUTION OF THIS AMENDMENT.

 

[The
Remainder of this Page Intentionally Left Blank]

 

9

 

IN WITNESS WHEREOF, this Amendment has been executed
and is effective as of the date first above-written.

 

	
  COMPANIES:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LONE STAR TECHNOLOGIES, INC.

  	
   

  	
   

  
	
  FINTUBE TECHNOLOGIES, INC.

  	
   

  	
   

  
	
  LONE STAR STEEL COMPANY

  	
   

  	
   

  
	
  LONE STAR LOGISTICS, INC.

  	
   

  	
   

  
	
  STAR TUBULAR SERVICES, INC.,

  	
   

  	
   

  
	
  formerly known as T&N LONE STAR
  WAREHOUSE CO.

  	
   

  
	
  TEXAS & NORTHERN RAILWAY COMPANY

  	
   

  	
   

  
	
  FINTUBE CANADA, INC.

  	
   

  	
   

  
	
  STAR CAPITAL FUNDING, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Robert F. Spears

  	
   

  	
   

  
	
  Name:

  	
  Robert F. Spears

  	
   

  
	
  Title:

  	
  Vice President of each of the

  	
   

  
	
   

  	
  foregoing companies

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BELLVILLE TUBE COMPANY, L.P.

  	
   

  	
   

  
	
  as successor in interest by conversion to

  	
   

  	
   

  
	
  Bellville Tube Corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Bellville Tube General, LLC,

  	
   

  
	
   

  	
  its general partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Robert F. Spears

  	
   

  
	
   

  	
  Name:

  	
  Robert F. Spears

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
  WHEELING MACHINE PRODUCTS, L.P.,

  	
   

  	
   

  
	
  as successor in interest by conversion to Wheeling Machine Products,
  Inc.,

  	
   

  
	
   formerly known as Wheeling Acquisition
  Corporation and Star Tubular Technologies (Houston), Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Wheeling Machine Products General, LLC,

  	
   

  
	
   

  	
  its general partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Robert F. Spears

  	
   

  
	
   

  	
  Name:

  	
  Robert F. Spears

  
	
   

  	
  Title:

  	
  Vice President

  
								

 

 

	
  DELTA TUBULAR PROCESSING, L.P.

  	
   

  	
   

  
	
  as successor in interest by conversion to

  	
   

  	
   

  
	
  Delta Tubular Processing, Inc., formerly known as Lone Star
  Acquisition, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Delta Tubular Processing General, LLC,

  	
   

  
	
   

  	
  its general partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Robert F. Spears

  	
   

  
	
   

  	
  Name:

  	
  Robert F. Spears

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DELTA TUBULAR INTERNATIONAL, L.P.

  	
   

  	
   

  
	
  as successor in interest by conversion to

  	
   

  	
   

  
	
  Delta Tubular International, Inc., formerly known as Star Tubular
  International. Inc,

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Delta Tubular International General, LLC,

  	
   

  
	
   

  	
  its general partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Robert F. Spears

  	
   

  
	
   

  	
  Name:

  	
  Robert F. Spears

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GUARANTORS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ENVIRONMENTAL HOLDINGS, INC.

  	
   

  	
   

  
	
  ZINKLAHOMA, INC.

  	
   

  	
   

  
	
  LONE STAR STEEL INTERNATIONAL, INC.

  	
   

  	
   

  
	
  LONE STAR STEEL SALES COMPANY

  	
   

  	
   

  
	
  ROTAC, INC.

  	
   

  	
   

  
	
  LONE STAR ST HOLDINGS, INC.

  	
   

  	
   

  
	
  STAR TUBULAR TECHNOLOGIES, INC.

  	
   

  	
   

  
	
  STAR TUBULAR TECHNOLOGIES (YOUNGSTOWN), INC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Robert F. Spears

  	
   

  	
   

  
	
  Name:

  	
  Robert F. Spears

  	
   

  
	
  Title:

  	
  Vice President of each of the

  	
   

  
	
   

  	
  foregoing companies

  	
   

  
								

 

 

	
  BELLVILLE TUBE GENERAL, LLC

  	
   

  	
   

  
	
  WHEELING MACHINE PRODUCTS GENERAL, LLC

  	
   

  	
   

  
	
  DELTA TUBULAR PROCESSING GENERAL, LLC

  	
   

  	
   

  
	
  DELTA TUBULAR INTERNATIONAL
  GENERAL, LLC

  	
   

  	
   

  
	
  STAR ENERGY GROUP, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Robert F. Spears

  	
   

  	
   

  
	
  Name:

  	
  Robert F. Spears

  	
   

  
	
  Title:

  	
  Vice President of each of the

  	
   

  
	
   

  	
  foregoing limited liability companies

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LONE STAR NEVADA HOLDINGS, LLC,

  	
   

  	
   

  
	
  formerly known as Belleville Tube Limited, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Richard F. Klumpp

  	
   

  	
   

  
	
  Name:

  	
  Richard F. Klumpp

  	
   

  
	
  Title:

  	
  Manager, Treasurer and Secretary

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  NEW GUARANTOR:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LONE  STAR STEEL MEXICO, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Robert F. Spears

  	
   

  	
   

  
	
  Name:

  	
  Robert F. Spears

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  
						

 

 

	
  LENDERS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE CIT GROUP/BUSINESS CREDIT, INC.

  	
   

  	
   

  
	
  as Agent and Lender

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Mark Porter

  	
   

  	
   

  
	
  Name:

  	
  Mark Porter

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
  Revolving Loan
  Commitment: $40,000,000.00

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WELLS FARGO FOOTHILL, INC., formerly known as Foothill Capital
  Corporation

  	
   

  
	
  as Lender

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Lan Wong

  	
   

  	
   

  
	
  Name:

  	
  Lan Wong

  	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Revolving Loan
  Commitment: $30,000,000.00

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LASALLE
  BANK NATIONAL ASSOCIATION

  	
   

  	
   

  
	
  as Lender

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ June Courtney

  	
   

  	
   

  
	
  Name:

  	
  June Courtney

  	
   

  	
   

  
	
  Title:

  	
  Senior Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Revolving Loan
  Commitment: $25,000,000.00

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CONGRESS FINANCIAL CORPORATION
  (SOUTHWEST)

  	
   

  
	
  as Lender

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Joe Curdy

  	
   

  	
   

  
	
  Name:

  	
  Joe Curdy

  	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Revolving Loan Commitment: $30,000,000.00

  	
   

  	
   

  
									

 

 

EXHIBIT
A

to

EIGHTH
AMENDMENT TO AMENDED AND RESTATED FINANCING

AGREEMENT

 

Addition to Schedule 1

 

None

 

Addition to Schedule 7(l)

 

Exact Name of Obligor:

Lone Star Steel Mexico, LLC

 

State of Incorporation:

Texas

 

Federal Tax I.D. No.:

 

 

Chief Executive Office(s):

15660 Dallas Parkway, Suite 500

Dallas, Texas 75248

 

Tradenames:

None

 

Prior Names:

None

 

Charter No.:

TX800275827 (Filing Number)

 

 

Addition to Schedule 7(14)(f)

 

Locations of Owned Real Property:

 

None

 

Locations of Leased Real Property:

 

 

 

 

Additions to Schedule 7(14)(g)

 

None

 

Additions to Schedule 7(14)(l)

 

None

 

Additions to Schedule 7(14)(o)

 

Subsidiaries of Lone Star Steel International, Inc.:

 

Lone Star Steel Mexico, LLC

 

Subsidiary of Lone Star Steel Mexico, LLC:

 

Lone Star Steel International de Mexico  S DE R.L. de C.V.

 

Additions to Schedule 7(14)(p)

 

NoneExhibit 10.1

 

Key Executive

Change-in-Control

Severance Agreement

 

Bank
of Hawaii Corporation

 

1

 

Contents

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Article 1.

  	
  Establishment and Purpose

  	
  3

  
	
   

  	
   

  	
   

  
	
  Article 2.

  	
  Definitions and Construction

  	
  4

  
	
   

  	
   

  	
   

  
	
  Article 3.

  	
  Severance Benefits

  	
  6

  
	
   

  	
   

  	
   

  
	
  Article 4.

  	
  Just Cause

  	
  8

  
	
   

  	
   

  	
   

  
	
  Article 5.

  	
  Form and Timing of Severance Benefits

  	
  9

  
	
   

  	
   

  	
   

  
	
  Article 6.

  	
  Parachute Payments

  	
  9

  
	
   

  	
   

  	
   

  
	
  Article 7.

  	
  Other Rights and Benefits Not Affected

  	
  9

  
	
   

  	
   

  	
   

  
	
  Article 8.

  	
  Successors

  	
  10

  
	
   

  	
   

  	
   

  
	
  Article 9.

  	
  Administration

  	
  10

  
	
   

  	
   

  	
   

  
	
  Article 10.

  	
  Legal Fees

  	
  11

  

 

2

 

Bank of Hawaii Corporation

Key Executive

Change-in-Control Severance Agreement

 

Article 1.       Establishment
and Purpose

 

1.1         Effective Date.   This Executive Change-in-Control Severance
Agreement (the “Agreement) is made and entered
into pursuant to Bank of Hawaii Corporation’s Key Executive Severance Plan (the “Plan”), and is effective as of this 25th
day of June, 2004 (the “Effective Date”), by and
between Bank of Hawaii Corporation (“BOHC”), a
Delaware corporation, and Richard C. Keene, an executive (the “Executive”)
of BOHC and its subsidiary, Bank of Hawaii (the “Bank”).  This Agreement shall supersede and
replace any prior severance agreement entered into between BOHC and the
Executive.

 

1.2         Term of the Agreement.   The Agreement shall commence as of the
Effective Date written above, and shall continue until the Board of Directors
of BOHC (the “Board”) determines, in good faith
and in its sole discretion, that the Executive is no longer to be included in
the Plan and so notifies in writing the Executive during the term of this
Agreement of such determination.

 

Provided,
however, in the event that a Change in Control of BOHC, as defined in Section
2.1 herein, occurs during the term of this Agreement, this Agreement shall
remain irrevocably in effect for the greater of twenty-four (24) months from the date of such Change in Control, or
until all benefits have been paid to the Executive hereunder.

 

Further,
in the event that the Board has knowledge that a third party has taken steps
reasonably calculated to effect a Change in Control of BOHC, including, but not
limited to, the commencement of a tender offer for the voting stock of BOHC, or
the circulation of a proxy to BOHC’s shareholders, then this Agreement shall
remain irrevocably in effect until the Board, in good faith, determines that
such third party has fully abandoned or terminated its effort to effect a
Change in Control of BOHC.

 

1.3         Purpose of the Agreement.   The purpose of this Agreement
pursuant to the Plan, is to advance the interests of BOHC and the Bank by
assuring that BOHC and the Bank will have the continued employment and
dedication of the Executive and the availability of his advice and counsel in
the event that an acquisition or Change in Control of BOHC occurs.  This Agreement shall also assure the
Executive of equitable treatment during the period of uncertainty that
surrounds an acquisition or Change in Control, and allow the Executive to act
at all times in the best interests of BOHC and its shareholders.

 

1.4         Contractual Right to Benefits.   This Agreement establishes and
vests in the Executive a contractual right to the benefits which he or she is
entitled hereunder, enforceable by

 

3

 

the Executive against BOHC.  However, nothing herein shall require BOHC to
segregate, earmark, or otherwise set aside any funds or other assets to provide
for any payments hereunder.

 

This
Agreement shall be considered an unfunded agreement to provide benefits to a
select group of management or highly compensated employees, and is therefore
intended to be a “top-hat” plan exempt from the requirements of the provisions
of Parts 2, 3, and 4 of Title I of ERISA.

 

Article 2.       Definitions
and Construction

 

2.1         Definitions.   Whenever used in the Agreement, the
following terms shall have the meanings set forth below and, when the meaning
is intended, the initial letter of the word is capitalized.

 

(a)           “Base Salary” means the annualized salary at the beginning
of each Year, which includes all
regular basic wages, before reduction for any amounts deferred on a tax-qualified or nonqualified basis, payable in cash
to an Executive for services rendered during the Year.  Base Salary shall exclude bonuses, incentive
compensation, special fees or awards, commissions, allowances, or any other
form of premium or incentive pay,
or amounts designated by BOHC as payment toward or reimbursement of expenses.

 

(b)           “Beneficial Owner” shall have the meaning ascribed to such term
in Rule 13d-3 of the General
Rules and Regulations under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

(c)           “Beneficiary” with respect to an Executive means the person
or entities designated or deemed
designated by an Executive pursuant to Section 8.2 herein.

 

(d)           “Board” means the Board of Directors of BOHC.

 

(e)           “Change in Control” of BOHC means any one or more of the
following occurrences:

 

(i)            Any Person, including a “group” as defined in
Section 13(d)(3) of the
Securities Exchange Act of 1934, becomes the beneficial owner of shares of BOHC having 25 percent or
more of the total number of
votes that may be cast for the election of Directors of BOHC; or

 

(ii)           As the result of, or in connection with, any
cash tender or exchange offer,
merger or other business combination, sale of assets or contested election, or
any combination of the foregoing

 

4

 

transactions,
the person who were Directors of BOHC before the  transaction shall cease to constitute a
majority of the Board of Directors
of BOHC or any successor to BOHC.

 

(f)            “Code” means the Internal Revenue Code of 1986, as
amended.

 

(g)           “BOHC” means Bank of Hawaii Corporation, a Delaware corporation,
or any successor thereto that adopts the Agreement, as provided in Section 8.1
herein.

 

(h)           “Committee” means the Human Resources and Compensation
Committee of the Board of
Directors of BOHC or any other committee appointed by the Board to administer
this Agreement.

 

(i)            “Disability” means a physical or mental condition which
renders an Executive unable to
discharge his or her normal work responsibility with BOHC or the Bank and which, in the opinion of
a licensed physician selected by
the Executive, subject to reasonable approval by the Committee based upon sufficient medical
evidence, can be reasonably expected to continue for a period of at least one
full calendar year.  If an Executive fails to select a physician with
ten (10) business days of a written request made by BOHC, then BOHC may
select a physician for purposes
of this paragraph.

 

(j)            “Effective Date” means the date the Agreement is approved by
the Board, or such other date as
the Board shall designate in its resolution approving the Agreement, and as provided
in Section 1.1 herein.

 

(k)           “Effective Date of Termination” means the date on which a voluntary employment termination or involuntary
employment termination other than for Just Cause occurs within twenty-four (24)
months of a Change in Control
which triggers Severance Benefits hereunder.

 

(l)            “ERISA” means the Employee Retirement Income Security
Act of 1974, as amended from
time to time, or any successor act thereto.

 

(m)          “Expiration Date” means the date the Agreement expires, as
provided in Section 1.2 herein.

 

(n)           “Just Cause” means a termination of an Executive’s
employment by BOHC for which no
Severance Benefits are payable hereunder, as provided in Article 4 herein.

 

(o)           “Normal Retirement Date” shall mean the date the Executive reaches 65
years of age.

 

(p)           “Person” shall have the meaning ascribed to such terms
in Section

5

 

 

3(a)(9)
of the Exchange Act and used in Sections 13(d) and 14(d)  thereof, including a “group” as defined in
Section 13(d).

 

(q)           “Plan” means the Bank of Hawaii Corporation Key
Executive Severance Plan, adopted
April 27, 1983.

 

(r)           “Severance Benefit” means the payment of severance compensation
as provided in Article 3 herein.

 

(s)           “Year” means the consecutive 12-month period beginning
each January 1 and ending
December 31.

 

2.2         Gender and Number.   Except where otherwise indicated by the
context, any masculine term used herein also shall include the feminine, the
plural shall include the singular, and the singular shall include the plural.

 

2.3          Severability.   In the event any provision of the Agreement
shall be held illegal or invalid for any reason, the illegality or invalidity
shall not affect the remaining parts of the Agreement, and the Agreement shall
be construed and enforced as if the illegal or invalid provision had not been
included.

 

2.4         Modification.   No express provisions of this Agreement may
be modified, waived, or discharged unless such modification, waiver, or
discharge is agreed to by the Executive in writing and approved by the Human
Resources  and Compensation Committee of
the Board of Directors.

 

2.5         Applicable Law.   To the extent not preempted by the laws of
the United States, the laws of the State of Hawaii shall be the controlling law
in all matters relating to the Agreement.

 

Article 3.       Severance
Benefits

 

3.1         Right to Severance Benefits.   The Executive shall be entitled to receive
from BOHC Severance Benefits as described in Section 3.2 herein, if there has
been a Change in Control of BOHC, as defined in Section 2.1(e) herein, and if,
within twenty-four (24) months
thereafter, the Executive voluntarily terminates employment or is involuntarily
terminated without Just Cause with BOHC. 
An Executive shall not be entitled to receive Severance Benefits if the
Executive’s employment with BOHC or Bank of Hawaii ends due to an involuntary
termination by BOHC for Just Cause, as provided under Article 4 herein.

 

3.2         Description of Severance Benefits.  
In the event that an
Executive becomes entitled to receive Severance Benefits, as provided in
Section 3.1 herein, BOHC shall pay to the Executive and provide the Executive
with the following:

 

(a)           An amount equal to three (3) times
the Executive’s highest annual Base

 

6

 

Salary
earned (i) at any time during the three (3) complete fiscal years  immediately preceding the Effective Date of
Termination, or (ii) if the Executive was not
employed during such time period, at any time thereafter; and

 

(b)           An amount equal to three (3) times
the Executive’s highest annual bonus earned under the annual incentive plan (which, for purposes of this
Agreement, means the One-Year Incentive Plan, or Key Contributor Incentive
Plan, or any successsor or alternative plan or arrangement providing for an
annual incentive bonus) during the three (3) complete
fiscal years prior to the Effective Date of Termination, or, if shorter, over
the Executive’s entire period of employment. 
However, if the Executive’s period of employment is less than one year,
the bonus shall be considered zero (0); and

 

(c)           An amount equal to three (3) times
the Executive’s highest annual incentive compensation earned under the Bank of
Hawaii Corporation Profit Sharing Plan, the Sustained Profit Growth Plan or any
successsor or alternative plan or arrangement providing for a long-term
incentive bonus, or any successor plans thereto over the three (3) complete fiscal years prior to the Effective Date of Termination, or, if
shorter, over the Executive’s entire
period of employment.  However, if the
Executive’s period of employment
is less than one year, the average incentive compensation shall be considered zero (0);
and

 

(d)           An amount equal to the excess of (i) the maximum payment the Executive would have received
under the annual incentive plan if he had continued in the employment of BOHC
and the Bank through the end of the performance period following the Effective
Date of Termination, and if the Bank had met its maximum performance goals as
provided under the terms of the Plan and the maximum amount payable to the
Executive had been paid, over (ii) the actual
payout under the annual incentive plan resulting from the Executive’s
termination of employment; and

 

(e)           A payout under the long-term incentive plan,
in accordance with the terms of
such plan; and

 

(f)            A continuation of all welfare benefits at no
direct cost to the Executive,  including medical insurance, long-term disability, and group term life insurance
for three (3) full years from the Effective Date
of Termination or until the Executive reaches his Normal Retirement Date,
whichever occurs earlier.

 

3.3         Reduction of Severance Benefits.  
In the event there
are fewer than thirty-six (36) whole or
partial months remaining from the Executive’s Effective Date of Termination
until the Executive’s Normal Retirement Date,  as
defined under the Retirement Plan, then the amounts provided for under Sections
3.2(a), (b), and (c) above shall be reduced by a fraction, the

 

7

 

numerator
of which shall be the number of whole or partial months remaining until the
Executive’s Normal Retirement Date, and the denominator of which shall be
thirty-six (36).

 

3.4         Fringe Benefits.   The Executive’s participation in fringe
benefits prior to the Executive’s Effective Date of Termination shall be
continued, or equivalent benefits shall be provided, at no cost to the
Executive, for a period of three (3) years from
the Executive’s Effective Date of Termination (or until he
or she reaches his Normal Retirement Date, whichever occurs earlier).

 

3.5         Relocation Benefits.  Should the Executive move his residence in
order to pursue other business opportunities within two (2) years
of Executive’s Effective Date of Termination, the Executive shall be reimbursed
for any moving expenses (as defined in Section
217(b) of the Code) incurred in that relocation (including
taxes, if any, payable on the reimbursement) which are not
reimbursed by another employer.  Benefits
provided herein shall not exceed the assistance and benefits customarily
provided by BOHC to transferred employees prior to the Change in Control.

 

3.6         Incentive Compensation.  Any deferred awards previously granted to the
Executive under BOHC’s incentive compensation plans and not previously paid to
the Executive, shall immediately vest on the date of the Executive’s Effective
Date of Termination and shall be paid no later than ninety (90) calendar
days following that date, and be included as compensation in the month paid.

 

3.8         Stock Options and SARs.   Stock options (“options”),stock
appreciation rights (“SARs”) and
restricted shares, if any, granted to the
Executive by BOHC will be exercisable or payable pursuant to the terms of the
applicable plans.

 

Article 4.       Just
Cause

 

4.1         Just Cause.  Nothing in this Agreement shall be construed
to prevent BOHC or the Bank from terminating an Executive’s employment for Just
Cause.  In such case, no Severance
Benefits shall be payable to the Executive under this Agreement.

 

Just
Cause shall mean the criminal conviction of the Executive for an act of fraud,
embezzlement, theft or any other act constituting a felony.

 

The
determination that the Executive’s actions constitute Just Cause for
termination shall be made by the Board, acting in good faith.

 

Article 5.       Form
and Timing of Severance Benefits

 

5.1         Form and Timing of Severance Benefits. 
The Severance
Benefits described in Sections 3.2 (a), (b), (c), (d) and (e), shall be paid in
cash to the Executive in a single lump sum

 

8

 

as
soon as practicable following the Executive’s Effective Date of Termination,
but in no event beyond ninety (90) calendar
days from such date.

 

The
Severance Benefits described in Section 3.2(f) and 3.5 herein shall be provided
by BOHC to the Executive immediately upon the Executive’s Effective Date of
Termination and shall continue to be provided for three (3) full
calendar years from the Executive’s Effective Date of Termination or until the
Executive reaches his or her Normal Retirement date, whichever occurs earlier.

 

5.2         Withholding of Taxes.   BOHC shall withhold from any amounts payable
under this Agreement all Federal, state, city, or other taxes as legally shall
be required.

 

Article 6.       Parachute
Payments

 

6.1         Excise Tax Cap.   In the event that a Change in Control of BOHC
shall occur and a determination is made by BOHC, pursuant to Sections 280G and
4999 of the Code (and corresponding state law provisions) that
a golden parachute excise tax is due, the Executive’s Severance Benefits under
this Plan shall be grossed up for the amount equal to and only equal to the
amount necessary to pay the excise tax.

 

6.2         Subsequent Recalculation.  In the event the Internal Revenue Service
adjusts the excise tax computation of BOHC, as provided in Section 6.1 herein,
such that the Executive is liable for the payment of a greater excise tax under
Sections 280G and 4999 of the Code, or such that the Executive does not receive
the full benefit that he or she would have received, BOHC shall reimburse the Executive
for the full amount necessary to make the Executive whole (less any
amounts received by the Executive that he or she would not have received had
the computation initially been computed as subsequently adjusted), including
the value of the excise tax and all corresponding interest and penalties due to
the Internal Revenue Service.

 

Article 7.       Other
Rights and Benefits Not Affected

 

7.1         Other Benefits.   Neither the provisions of this Agreement nor
the Severance Benefits provided for hereunder shall reduce any amounts
otherwise payable, or in any way diminish the Executive’s rights as an employee
of BOHC, whether existing now or hereafter, under any benefit, incentive,
retirement, stock option, stock bonus, stock purchase plan, or any employment
agreement, or other plan or arrangement.

 

7.2         Employment Status.   This Agreement does not constitute a contract
of employment or impose on the Executive or BOHC any obligation to retain the
Executive as an employee, to change the status of the Executive’s employment,
or to change BOHC’s policies regarding termination of employment.

 

9

 

Article 8.       Successors

 

8.1         Successors.   BOHC will require any successor (whether direct or indirect, by purchase, merger, consolidation, or
otherwise) of all or substantially all of the business and/or assets
of BOHC or of any division or subsidiary thereof to expressly assume and agree
to perform this Agreement in the same manner and to the same extent that BOHC
would be required to perform it if no such succession had taken place.  Failure of BOHC to obtain such assumption and
agreement prior to the effectiveness of any such succession shall be a breach
of this Agreement and shall entitle the Executive to compensation from BOHC in the
same amount and on the same terms as they would be entitled hereunder if
terminated voluntarily following a Change in Control.  Except for the purposes of implementing the
foregoing, the date on which any succession becomes effective shall be deemed
the Effective Date of Termination.

 

This
Agreement shall inure to the benefit of and be enforceable by the Executive’s
personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees, and legatees. 
If an Executive should die while any amount would still be payable
hereunder had the Executive continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement, to the Executive’s devisee, legatee, or other designee, or if there
is no such designee, to the Executive’s estate.

 

8.2         Beneficiaries.   The beneficiary of the Executive under the
Bank of Hawaii Corporation Money Purchase Plan shall be the beneficiary of the
Executive’s benefits under this Agreement, unless a beneficiary is otherwise
designated by the Executive in the form of a signed writing acceptable to the
Committee.  An Executive may make or
change such designation at any time.

 

Article
9.       Administration

 

9.1         Administration.   This Agreement shall be administered by the
Human Resources and Compensation Committee of the Board of Directors.  The Committee is authorized to interpret this
Agreement, to prescribe and rescind rules and regulations, to provide conditions
and assurances deemed necessary and advisable, to protect the interests of
BOHC, and to make all other determinations necessary or advisable for the
Agreement’s administration.

 

In
fulfilling its administrative duties hereunder, the Committee may rely on
outside counsel, independent accountants, or other consultants to render advice
or assistance.

 

9.2         Indemnification and Exculpation.  
The members of the
Board, its agents and officers, directors, and employees of BOHC and its
affiliates shall be indemnified and held harmless by BOHC against and from any
and all loss, cost, liability, or expense that may be imposed upon or
reasonably incurred by them in connection with or resulting from any claim,
action, suit, or proceeding to which they may be a party or in which they may
be involved by reason of any action taken or failure to act under this
Agreement and against and from any and all amounts paid by them in settlement (with BOHC’s written approval) or paid by them in

 

10

 

satisfaction
of a judgment in any such action, suit, or proceeding.  The foregoing provision shall not be
applicable to any person if the loss, cost, liability, or expense is due to
such person’s gross negligence or willful misconduct.

 

Article
10.     Legal Fees

 

10.1      Legal Fees and Expenses.  BOHC shall pay all reasonable legal fees,
costs of litigation, and other expenses incurred in good faith by the Executive
as a result of BOHC’s refusal to provide the Severance Benefits to which the
Executive becomes entitled under this Agreement, or as a result of BOHC’s
contesting the validity, enforceability, or interpretation of the
Agreement.  Provided, however, that such
payments shall not exceed the amount permitted by law and BOHC’s Restated
Articles of Incorporation.

 

IN
WITNESS WHEREOF, BOHC has caused this Agreement to be executed by a resolution
of the Board of Directors, as of the day and year first above written.

 

	
   

  	
   

  	
  Bank of Hawaii Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael E. O’Neill

  	
   

  
	
   

  	
   

  	
   

  	
  Michael E. O’Neill

  
	
   

  	
   

  	
  Its:

  	
  Chairman & CEO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Richard C. Keene

  	
   

  
	
   

  	
   

  	
   

  	
  (Executive)

  
	
   

  	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Neal C. Hocklander

  	
   

  	
   

  	
   

  	
   

  
						

 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}]]