Document:

Unassociated Document

Execution Copy

 

THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

This Third Amendment to Amended and Restated Credit Agreement (this "Amendment Agreement") is dated as of August 9, 2010 by and among Lower Lakes Towing Ltd., Lower Lakes Transportation Company, Grand River Navigation Company, Inc., the other Credit Parties signatory hereto, the other Lenders signatory hereto and General Electric Capital Corporation, as Agent.

 

W I T N E S S E T H :

 

WHEREAS, the Credit Parties, the lenders party thereto, and the Agent entered into that certain Amended and Restated Credit Agreement dated as of February 13, 2008 and amended as of June 24, 2008 and June 23, 2009 (the "Credit Agreement");

 

WHEREAS, the Lenders and the Agent have agreed to further amend the Credit Agreement to effect certain changes thereto requested by the Credit Parties as set forth herein, including, without limitation, to make an additional term loan to Lower Lakes.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.             Defined Terms.  Capitalized terms used herein and not otherwise defined herein shall have the meanings attributed to such terms in the Credit Agreement, as amended hereby.

 

2.             Additional Canadian Term Loan.  On the Restatement Closing Date, each Cdn. Term Lender agreed to make a term loan denominated in Canadian Dollars to Lower Lakes in the original principal amount of its Cdn. Term Loan Commitment.  Lower Lakes acknowledges and agrees that, immediately prior to the effectiveness of this Amendment Agreement, the aggregate outstanding principal balance of the “Cdn. Term Loan” under the Credit Agreement is Cdn. $36,140,000. Subject to the terms and conditions hereof, each Cdn. Term Lender severally agrees to make an additional term loan (individually an “Additional Cdn. Term Loan” and collectively for all the Cdn. Term Lenders the “Additional Cdn. Term Loans”) in Canadian Dollars to Lower Lakes in the aggregate amount of Cdn. $20,000,000.  The Additional Cdn. Term Loans shall be advanced on the Third Amendment Effective Date and shall be made ratably by the Cdn. Term Lenders. All Cdn. Term Notes issued under the Credit Agreement shall be deemed replaced as of the Third Amendment Effective Date with the notes issued pursuant to this Amendment Agreement (without effecting a novation with respect to any “Obligations” as defined in the Credit Agreement).

 

3.             Amendments to Credit Agreement.  The Credit Agreement is hereby amended as follows:

 

  

 

  

 

3.1.           Section 1.1(a)(ii) of the Credit Agreement is hereby amended by deleting therein the reference to "April 1" and replacing it with a reference to "March 31".

 

3.2.           Section 1.1(b) of the Credit Agreement is hereby amended by (x) deleting the reference in the title to “(Cdn.$41,700,000)” and replacing it with a reference to “(Cdn.$56,140,000)” and (y) deleting the amortization table set forth in subclause (ii) in its entirety and replacing it as follows:

 

	
Period

	
Quarterly Installment Amounts

	
Third Amendment Effective Date – 

November 30, 2010

December 2010 – August 2011

September 2011 – March 2012

April 2012 – March 2013

Commitment Termination Date

	
 

         Cdn.$0

         Cdn.$695,000.00

         Cdn.$935,666.67

         Cdn.$935,666.67

         Cdn.$47,505,333.31

3.3.           Section 1.1(c)(ii) of the Credit Agreement is hereby amended by deleting therein the reference to "April 1" and replacing it with a reference to "March 31".

 

3.4.           Section 1.4 of the Credit Agreement is hereby amended by adding a new sentence at the conclusion thereof as follows:

 

Notwithstanding the foregoing, the Borrowers shall utilize the proceeds of the Additional Cdn. Term Loans not later than July 31, 2011 solely for the purposes and in the amounts set forth on Annex A to the Third Amendment.

 

3.5.           Section 5.13 of the Credit Agreement is hereby amended by adding a new paragraph (j) as follows:

 

(j)  Michipicoten Engines.  Promptly following its purchase of the new propulsion engines and related engine equipment for the Michipicoten (collectively, the “Michipicoten Engines”) as set forth in the Contract dated as of July 28, 2010 between Lower Lakes and Toromont CAT, a division of Toromont Industries Ltd., attached as Annex B to the Third Amendment, but prior to its taking possession thereof, Lower Lakes shall provide Agent with (i) an executed collateral assignment of rights and indemnities, in form and substance reasonably acceptable to Agent, with respect to the purchase orders and/or agreements relating to the Michipicoten Engines and any other associated equipment, (ii) evidence that the Michipicoten Engines will be covered by Lower Lakes’ insurance policies upon such purchase and (iii) the serial numbers assigned to each of the Michipicoten Engines. 

 

 

3.6.           Annex A to the Credit Agreement is hereby amended by adding the following new definitions thereto in alphabetical order:

 

Michipicoten Engines has the meaning set forth in Section 5.13.

 

Third Amendment means the Third Amendment to Amended and Restated Credit Agreement dated as of the Third Amendment Effective Date by and among the Credit Parties, the lenders signatory thereto and the Agent.

 

Third Amendment Effective Date means August 9, 2010.

 

  

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3.7.           Annex A to the Credit Agreement is hereby further amended by (i) deleting the definitions of Cdn. Term Loan, Cdn. Term Loan Commitment and Commitments in their entirety and replacing them with the following:

 

“Cdn. Term Loan” means the term loans denominated in Canadian Dollars made by each Cdn. Term Lender in the original principal amount of its Cdn. Term Loan Commitment on each of the Restatement Closing Date and the Third Amendment Effective Date to Lower Lakes.

 

"Cdn. Term Loan Commitment" means (a) as to any Cdn. Term Lender with a Cdn. Term Loan Commitment, the commitment of such Lender to make its Pro Rata Share of the Cdn. Term Loan as set forth on Annex I to the Agreement or in the most recent Assignment Agreement executed by such Lender, and (b) as to all Cdn. Term Lenders with a Cdn. Term Loan Commitment, the aggregate commitment of all Lenders to make the Cdn. Term Loan, which aggregate commitment shall be Fifty Six Million One Hundred Forty Thousand Canadian Dollars (Cdn. $56,140,000) on the Third Amendment Effective Date.  After advancing the Cdn. Term Loan, each reference to a Lender's Cdn. Term Loan Commitment shall refer to that Lender's Pro Rata Share of the outstanding Cdn. Term Loan.

 

"Commitments" means (a) as to any Cdn. Lender, the aggregate of such Lender's Cdn. Revolving Loan Commitment (including without duplication the Cdn. Swing Line Lender’s Cdn. Swing Line Loan Commitment as a subset of its Cdn. Revolving Loan Commitment), Cdn. Term Loan Commitment and Engine Term Loan Commitment and as to any US Lender, the aggregate of such Lender's US Revolving Loan Commitment (including without duplication the US Swing Line Lender’s US Swing Line Loan Commitment as a subset of its US Revolving Loan Commitment), and US Term Loan Commitment, all as set forth on Annex I to the Agreement or in the most recent Assignment Agreement executed by such Lender and (b) as to all Lenders, the aggregate of all Lenders' Revolving Loan Commitments (including without duplication the Swing Line Lender’s Swing Line Loan Commitment as a subset of its Revolving Loan Commitment) and Term Loan Commitments, as to each of clauses (a) and (b), as such Commitments may be reduced, amortized or adjusted from time to time in accordance with the Agreement.

 

and (ii) replacing each reference to (A) “Independent” appearing therein with a reference to “Ojibway” and (B) “Pioneer” appearing therein with a reference to “Kaministiqua”.

 

3.8.           Annex G to the Credit Agreement is hereby amended by (a) deleting paragraph (c) thereof in its entirety and replacing it with the following:

 

(c)           Maximum Senior Funded Debt to EBITDA Ratio.  Rand shall have on a consolidated basis, at the end of each Fiscal Year set forth below, a Senior Funded Debt to EBITDA Ratio as of the last day of such Fiscal Year and for the 12-month period then ended of less than the following:

 

	
Fiscal Years

	
Ratio

	
Fiscal Year 2011

	
4.0:1.0

	
Fiscal Year 2012 and

each Fiscal Year ending thereafter

	
3.5:1.0

 

  

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,(b) adding the following sentence at the end of paragraph (d) thereof:

 

For purposes of determining compliance with this paragraph (d), the calculation of Capital Expenditures shall exclude the costs of (i) the purchase and installation of the Michipicoten Engines and (ii) all other capital equipment purchased with the proceeds of the Additional Cdn. Term Loan (as defined in the Third Amendment) as set forth on Annex A to the Third Amendment.

 

and (c) deleting paragraph (e) thereof in its entirety and replacing it with the following:

 

(e)           Minimum Appraised Value to Term Loan Outstandings.  Rand shall have on a consolidated basis, at the end of each Fiscal Year (other than the Fiscal Year ending March 31, 2011, which shall be tested as of June 30, 2011), a ratio of (i) the aggregate appraised orderly liquidation value of the Vessels as of such date to (ii) the aggregate principal amount outstanding of the Term Loans as of such date of not less than 1.25 to 1.00.

 

3.9.           Annex I to the Credit Agreement is hereby amended by restating the Cdn. Term Loan Commitment as follows:

 

	
Cdn. Term Loan Commitment:

	
Cdn$56,140,000

	  	  
	
General Electric Capital Corporation

	
Cdn$33,434,245.20

	
PNC Bank Canada Branch

	
Cdn$22,705,754.80

 

3.10.           Disclosure Schedule 3.24 to the Credit Agreement is hereby amended by restating such Schedule in its entirety as set forth on Annex C attached hereto.

 

4.             Conditions to Effectiveness.  The effectiveness of this Amendment Agreement is expressly conditioned upon the execution of this Amendment Agreement by the Credit Parties, the Agent and the Requisite Lenders and the satisfaction of the following conditions:

 

(a)           Cdn. Term Note.  Lower Lakes shall provide a duly executed original of a replacement Cdn. Term Note for each Cdn. Term Lender dated the Third Amendment Effective Date, reflecting the terms set forth in Section 2 hereof.

 

(b)           Reaffirmation.  Each Credit Party shall have executed and delivered the Reaffirmation of Guaranty in the form of Exhibit A attached hereto.

 

(c)           Amendments to Mortgages. Agent shall have received executed copies of amendments to the Mortgages in form and substance reasonably satisfactory to the Agent.

 

(d)           Collateral Assignment.  Agent shall have received an executed collateral assignment of rights and indemnities, in form and substance reasonably acceptable to Agent, with respect to the purchase order relating to the Michipicoten Engines (the “Collateral Assignment”).

 

  

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(e)           Opinions.  Duly executed originals of opinions of Katten Muchin Rosenman LLP and Ogilvy Renault LLP, counsel for the Credit Parties, together with any local counsel opinions reasonably requested by Agent, each in form and substance reasonably satisfactory to Agent and its counsel, dated the Third Amendment Effective Date, with respect to the transactions contemplated by this Amendment Agreement.

 

(f)           Secretary’s Certificate.  Agent shall have received from each Borrower, its (i) organizational documents and all amendments thereto, (ii) certificates of compliance or status (or applicable equivalent thereof) from its jurisdiction of organization, each dated a recent date prior to the Third Amendment Effective Date and certified by the applicable authorized Governmental Authority, (iii) bylaws, together with all amendments thereto, and (iv) resolutions of its board of directors approving and authorizing its execution, delivery and performance of this Amendment Agreement and the transactions contemplated by such documents, all certified by its board of directors as being in full force and effect without modification as of the date hereof.

 

(g)           Payment of Fees and Attorney Costs.  The Borrowers shall have paid the Agent (i) the fees referred to in that certain fee letter dated as of July 20, 2010 by and among Rand, the Borrowers and GE Capital, (ii) the costs and expenses of Agent incurred by it in connection with the transactions contemplated by this Amendment Agreement and (iii) the reasonable fees and expenses of legal counsel of Agent in connection with the preparation and negotiation of this Amendment Agreement and the transactions contemplated thereby.  In addition, the Borrowers shall have paid (i) PNC Bank, N.A. the closing fee referred to in that certain commitment letter dated as of July 20, 2010 by and among Rand, the Borrowers and PNC Bank, N.A. and (ii) KBC Bank the work fee in the amount of $10,000.

 

(h)           Officer's Certificate.  Agent shall have received duly executed originals of a certificate of an officer of Lower Lakes, dated the Third Amendment Effective Date, stating that, since March 31, 2010 (a) no event or condition has occurred or is existing which could reasonably be expected to have a Material Adverse Effect; (b) there has been no material adverse change in the industry in which Borrowers operate; (c) no Litigation has been commenced which, if successful, would have a Material Adverse Effect or could challenge any of the transactions contemplated by the Amendment Agreement and the other Loan Documents; (d) there have been no Restricted Payments made by any Credit Party; (e) after giving effect to the transactions contemplated by the Amendment Agreement, each Credit Party will be Solvent, and (f) there has been no material increase in liabilities, liquidated or contingent, and no material decrease in assets of the Borrowers or any of their Subsidiaries.

 

(i)           Other Documents.  The Borrowers shall provide such other documents, instruments and agreements as the Agent may reasonably request.

 

  

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5.             Covenant.  Not later than fifteen (15) days following the Third Amendment Effective Date, Lower Lakes shall have delivered to Agent an executed Acknowledgment to the Collateral Assignment from Toromont Industries Ltd., in form and substance reasonably acceptable to Agent.

 

6.             Representations and Warranties of the Credit Parties.

 

6.1.           Each of the Credit Parties represents and warrants that the execution, delivery and performance by each of the Credit Parties of this Amendment Agreement and the documents and instruments delivered in connection therewith have been duly authorized by all necessary corporate action and that this Amendment Agreement is a legal, valid and binding obligation of such Credit Party, enforceable against such Credit Party in accordance with its terms, except as the enforcement thereof may be subject to (a) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally and (b) general principles of equity (regardless of whether such enforcement is sought in a proceeding in equity or at law).

 

6.2.           Each of the Credit Parties hereby certifies that each of the representations and warranties contained in the Credit Agreement and the other Loan Documents (as amended through the date hereof) is true and correct in all material respects on and as of the date hereof as if made on the date hereof, except to the extent that any such representation or warranty is stated to relate solely to an earlier date, in which case such representation or warranty shall be true and correct on and as of such earlier date.

 

7.             Reference to and Effect on the Credit Agreement.

 

7.1.           Upon the effectiveness of this Amendment Agreement, each reference in the Credit Agreement to "this Agreement," "hereunder," "hereof," "herein" or words of like import and each reference to the Credit Agreement in each Loan Document shall mean and be a reference to the Credit Agreement as amended hereby.

 

7.2.           Except as specifically amended above, all of the terms, conditions and covenants of the Credit Agreement and the other Loan Documents shall remain unaltered and in full force and effect and shall be binding upon the Credit Parties in all respects and are hereby ratified and confirmed.

 

7.3.           The execution, delivery and effectiveness of this Amendment Agreement shall not operate as a waiver of (a) any right, power or remedy of any Lender or the Agent under the Credit Agreement or any of the other Loan Documents, or (b) any Event of Default or Default under the Credit Agreement.

 

8.             CHOICE OF LAW.  THIS AMENDMENT AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF NEW YORK.

 

9.             Execution in Counterparts.  This Amendment Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

  

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10.             Headings.  Section headings in this Amendment Agreement are included herein for convenience of reference only and shall not constitute a part of this Amendment Agreement for any other purposes.

 

[signature pages follow]

 

  

7

  

 

IN WITNESS WHEREOF, the Credit Parties, the Agent and the Lenders have executed this Amendment Agreement as of the date first above written.

 

	 	
LOWER LAKES TOWING LTD.

	 
	 	 	 	 
	 	
By: 

	
/s/ Scott F. Bravener

	 
	 	 	 	 
	 	
Title: 

	
President

	 
	 	 	 	 

 

	 	
LOWER LAKES TRANSPORTATION COMPANY

	 
	 	 	 	 
	 	
By: 

	

/s/ Joseph W. McHugh, Jr.

	 
	 	 	 	 
	 	
Title: 

	
Vice President

	 
	 	 	 	 

 

	 	
GRAND RIVER NAVIGATION COMPANY, INC.

	 
	 	 	 	 
	 	
By: 

	
/s/ Joseph W. McHugh, Jr.

	 
	 	 	 	 
	 	
Title: 

	
Vice President

	 
	 	 	 	 

 

	 	
RAND LOGISTICS, INC.

	 
	 	 	 	 
	 	
By: 

	
/s/ Joseph W. McHugh, Jr.

	 
	 	 	 	 
	 	
Title: 

	
Chief Financial Officer and Vice President

	 
	 	 	 	 

 

  

  

  

	 	
RAND LL HOLDINGS CORP.

	 
	 	 	 	 
	 	
By: 

	
/s/ Joseph W. McHugh, Jr.

	 
	 	 	 	 
	 	
Title: 

	
Vice President

	 
	 	 	 	 

 

	 	
RAND FINANCE CORP.

	 
	 	 	 	 
	 	
By: 

	
/s/ Joseph W. McHugh, Jr.

	 
	 	 	 	 
	 	
Title: 

	
Vice President

	 
	 	 	 	 

 

	 	
GENERAL ELECTRIC CAPITAL CORPORATION, as Agent, L/C Guarantor, Documentation Agent and Lender

	 
	 	 	 	 
	 	
By: 

	
/s/ Joseph Tunney

	 
	 	 	 	 
	 	
Title: 

	
Duly Authorized Signatory

	 
	 	 	 	 

      

	 	
PNC BANK, N.A., as Co-Syndication Agent and Lender

	 
	 	 	 	 
	 	
By: 

	
/s/ Lisa Lisi

	 
	 	 	 	 
	 	
Title: 

	
Vice President

	 
	 	 	 	 

 

  

  

  

	 	
PNC BANK CANADA BRANCH, as Co-Syndication Agent and Lender

	 
	 	 	 	 
	 	
By: 

	
/s/ Mike Danby

	 
	 	 	 	 
	 	
Title: 

	
Assistant Vice President

	 
	 	 	 	 

 

	 	
KBC BANK, as Lender

	 
	 	 	 	 
	 	
By: 

	
/s/ Larry Manochis

	 
	 	 	 	 
	 	
Title: 

	
Director

	 
	 	 	 	 

 

	 	
By: 

	
/s/ Robert Snauffer

	 
	 	 	 	 
	 	
Title: 

	
Managing Director

	 
	 	 	 	 

 

  

  

  

 

ANNEX A

Use of Proceeds of Additional Cdn. Term Loan

 

	
Lower Lakes Use of Proceeds

	  
	
Capital Expenditure Item

	
Expense

	
Michipicoten Engine Replacement

	
$15,750,000

	
Capital Expenditures and Dry Dock Expenditures, including Steel Work, for the Maumee, Saginaw and Ojibway

	
$4,250,000

	
Total Planned Capital Expenditures

	
$20,000,000exhibit10-4.htm

    Amendment to Employment Agreement of Dr. Felix
Zandman

     

         Amendment to Employment Agreement (this “Amendment”), made as of August
8, 2010 by and between VISHAY INTERTECHNOLOGY, INC., a Delaware corporation
(“Vishay”), and DR. FELIX ZANDMAN (“Executive”) (collectively the “Parties”).
This Amendment supersedes and replaces in its entirety that certain Amendment to
Employment Agreement between the Parties dated June 16, 2010. 

     

         WHEREAS, Executive has been employed by Vishay pursuant to an Amended and
Restated Employment Agreement, made as of May 13, 2009, between the Parties (the
“Employment Agreement”); 

     

         WHEREAS, Section 10.5 of the Employment Agreement provides that Vishay
and Executive may amend the Employment Agreement by mutual agreement in writing;
and

     

         WHEREAS, the Company and Executive desire to amend the Employment
Agreement as set forth. 

     

         NOW THEREFORE, in consideration of the premises and the mutual benefits
to be derived herefrom and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:

     

         1. The Employment Agreement is hereby amended to
add the following new Section 4.5
after Section 4.4 of the Employment Agreement: 

     

              “4.5
Annual Equity Grant. Vishay granted Executive on March 18, 2010,
37,000 time-vested restricted stock units (“RSUs”) and 111,000 performance-based
restricted stock units (“PBRSUs”), under the Vishay Intertechnology 2007 Stock
Incentive Program (the “Stock Incentive Program”). Commencing on January 1, 2011
and on each January 1 thereafter during the Term, Vishay shall grant Executive
an annual equity award under the Stock Incentive Program (or any successor plan
or arrangement thereof) having a value approximately equal to 160% of
Executive’s Base Salary on such date. Twenty-five percent of each such grant
shall be in the form of RSUs, and 75% shall be in the form of PBRSUs. The fair
market value of Common Stock as of January 1 of a year for purposes of
determining the number of RSUs and PBRSUs to be granted on such date shall be
equal to the closing price of such stock on the New York Stock Exchange on the
trading day immediately preceding such January 1. Subject to Executive’s
continued employment with Vishay, the RSUs and PBRSUs shall vest on January 1 of
the third year following their grant, provided that, in the case of the PBRSUs,
only to the extent the performance criteria applicable to the PBRSUs are
realized. In the event of the termination of Executive’s employment with Vishay
by Vishay without Cause, by Executive for Good Reason, or as a result of his
death or Disability, the outstanding RSUs granted pursuant to this Section 4.5
shall immediately vest and the outstanding PBRSUs granted pursuant to this
Section 4.5 shall vest on their normal vesting date to the extent the applicable
performance criteria are realized. In the event of a Change in Control (as
defined in the Stock Incentive Program), all of such outstanding RSUs and PBRSUs
shall immediately vest.” 

     

    1

     

    

    
    

         2. Section 5.1 of the Employment Agreement is
hereby amended to read as follows: 

     

              “5.1
Participation in Benefit Plans and Programs. During the Term, (a) Executive and
his spouse shall be entitled to participate in any and all medical insurance
(including hospitalization, doctor visits, pharmaceutical, vision and dental
coverage) to the maximum extent made available under plans maintained by the
Company from time to time, and group health insurance, disability insurance,
life insurance and retirement plans which are generally made available by Vishay
and Vishay Israel to its senior executives, subject to the eligibility
requirements and other provisions of such plans and programs; and (b) Vishay
shall pay for all premiums therefore and reimburse Executive for all
out-of-pocket expenses and co-payments incurred in connection with such plans.”

     

         3. The amendment to the Employment Agreement made by paragraph 1 hereof
shall be effective as of March 18, 2010. The amendment to the Employment
Agreement made by paragraph 2 hereof shall be effective as of August 8, 2010.

     

         4. Except as set forth in this Amendment, all
other terms and conditions of the Employment Agreement shall remain unchanged and in full force and
effect. 

     

         5. This Amendment may be executed in one or more counterparts, each of which
shall for all purposes be deemed to be an original and all of which shall
constitute the same instrument. 

     

         IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment
to be executed on its behalf as of the date first above written. 

     

    
      	VISHAY INTERTECHNOLOGY,
INC.
	 
	 
	By:	/s/ Lior E.
      Yahalomi	 
	
            	Name: Lior Yahalomi
	
            	Title: Chief Financial
  Officer

      	/s/ Dr. Felix Zandman	 
	Dr. Felix
Zandman

    

    2

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