Document:

Exhibit 10.8

 

Citibank, N.A.

390 Greenwich Street, 5th Floor

New York, New York 10013

 

May 26, 2016

 

ZFC Trust

c/o ZAIS REIT Management, LLC

2 Bridge Avenue, Suite 322

Red Bank, NJ 07701

Attention: General Counsel

 

NOTICE OF REPURCHASE AND TERMINATION OF TRANSACTIONS

 

Re:       CITIBANK, N.A., ZFC TRUST MASTER
REPURCHASE AGREEMENT

 

		1.	Reference is made this 26th day of May, 2016 (the “Effective Date”) to that certain
Master Repurchase Agreement, dated as of May 20, 2013 (the “Repurchase Agreement”), as amended from time to time, by
and among ZFC TRUST (“Seller”) and CITIBANK, N.A. (“Buyer”). Capitalized terms used but not otherwise defined
herein shall have the meanings assigned to such terms in the Repurchase Agreement.

 

		2.	The parties agree that there is no current outstanding Repurchase Price owed Buyer under the Repurchase
Agreement and as of the Effective Date, the Repurchase Agreement and all of the Program Documents shall automatically terminate
without any further action of or notice to any party, and shall be of no further force or effect (the “Termination”).
Notwithstanding the foregoing, the parties acknowledge that, pursuant to the terms of the Master Repurchase Agreement and the other
Program Documents, the Termination shall not affect any obligations that expressly survive termination of the Repurchase Agreement
(or such other Program Document as the case may be) including without limitation those obligations of the Seller pursuant to Sections
3(i), 5, 12, 13, 23 and 25 of the Repurchase Agreement (and those obligations of Seller set forth herein).

 

		3.	This letter agreement shall not constitute a waiver of any provisions or of Buyer’s rights
under the Repurchase Agreement or any other Program Document that expressly survive termination of the Program Documents.

 

		4.	This letter agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective successors and permitted assigns.

 

		5.	This letter agreement may be executed in any number of counterparts each of which shall constitute
one and the same instrument, and either party hereto may execute this letter agreement by signing any such counterpart.

 

		6.	The parties hereto shall each take any and all further reasonable actions and execute and deliver
and/or authorize the filing of any and all such further reasonable documents and undertakings as are necessary or reasonably requested
by the other party to effectuate the purposes of this letter agreement. The undertakings set forth in this section shall survive
the execution and delivery of this letter agreement.

 

     

     

    

 

		7.	THIS LETTER AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (OTHER
THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW) AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.

 

[SIGNATURE PAGE FOLLOWS]

 

     

     

    

 

	 	CITIBANK, N.A. 
	 	(Buyer)
	 	 
	 	By:	/s/ Susan Mills
	 	Name: Susan Mills
	 	Title: Vice President

 

	Accepted and Agreed:	 
	 	 
	ZFC TRUST	 
	(Seller)	 
	 	 
	By:	  /s/ Michael F. Szymanski	 
	Name: Michael F. Szymanski	 
	Title: Authorized Signatory	 

 

Termination Letter Agreement (Citibank, N.A. & ZFC Trust)Exhibit

FIRST AMENDMENT AGREEMENT
This FIRST AMENDMENT AGREEMENT (this “Amendment”) is made as of the 5th day of August, 2016 among:
(a)    SIFCO INDUSTRIES, INC., an Ohio corporation (the “Borrower”);

(b)    the Lenders, as defined in the Credit Agreement, as hereinafter defined; and

(c)    KEYBANK NATIONAL ASSOCIATION, as the administrative agent for the Lenders under the Credit Agreement (the “Administrative Agent”).

WHEREAS, the Borrower, the Administrative Agent and the Lenders are parties to that certain Credit and Security Agreement, dated as of June 26, 2015 (as the same may from time to time be amended, restated or otherwise modified, the “Credit Agreement”);

WHEREAS, the Borrower, the Administrative Agent and the Lenders desire to amend the Credit Agreement to modify certain provisions thereof; 

WHEREAS, each capitalized term used herein and defined in the Credit Agreement, but not otherwise defined herein, shall have the meaning given such term in the Credit Agreement; and

WHEREAS, unless otherwise specifically provided herein, the provisions of the Credit Agreement revised herein are amended effective as of the date of this Amendment;

NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Borrower, the Administrative Agent and the Lenders agree as follows:

1.    Amendment to Financial Covenants.  Section 5.7 of the Credit Agreement is hereby amended to delete subsections (a) and (b) therefrom and to insert in place thereof, respectively, the following:

(a)    Leverage Ratio.  The Borrower shall not suffer or permit at any time the Leverage Ratio to exceed (i) 4.00 to 1.00 on September 30, 2016 through December 30, 2016, (ii) 2.75 to 1.00 on December 31, 2016 through September 29, 2017, and (iii) 2.50 to 1.00 on September 30, 2017 and thereafter.

(b)    Fixed Charge Coverage Ratio.  The Borrower shall not suffer or permit at any time the Fixed Charge Coverage Ratio to be less than (i) 1.00 to 1.00 on September 30, 2016 through December 30, 2016, and (ii) 1.20 to 1.00 on December 31, 2016 and thereafter.

2.    Waiver of Specific Defaults.  The Borrower has notified the Administrative Agent and the Lenders that Borrowers have failed to comply with (a) the financial covenant set forth in Section 5.7(a) (Leverage Ratio) of the Credit Agreement for the fiscal quarter ended June 30, 2016, 

and (b) the financial covenant set forth in Section 5.7(b) (Fixed Charge Coverage Ratio) of the Credit Agreement for the fiscal quarter ended June 30, 2016 (collectively, the “Violations”).  The Borrower has requested that the Administrative Agent and the Lenders waive the Defaults or Events of Default that exist solely by virtue of the Violations.  The Administrative Agent and the Lenders hereby waive the aforesaid Defaults or Events of Default on the conditions that, after giving effect to the terms of this Amendment, no Default or Event of Default shall exist under the Credit Agreement or any other Loan Document.  This Amendment shall serve as evidence of such waiver.  The Borrower agrees with the Administrative Agent and the Lenders that (i) the waiver granted herein applies only to the Violations that relate to the periods set forth in this Section 2 and to no other period, (ii) except with respect to the limited waiver granted herein specifically relating to the Violations, the Administrative Agent and the Lenders shall not be under any obligation to forbear from exercising any of their rights or remedies upon the occurrence of any Default or Event of Default, and (iii) the Administrative Agent and the Lenders have not established any course of dealing with respect to such waiver or otherwise that is inconsistent with the express terms of the Credit Agreement and the other Loan Documents. The waiver requested by the Borrower and granted by the Administrative Agent and the Lenders hereunder relates solely to the items specifically set forth in this Section 2.  No further waiver has been requested or granted.

3.    Closing Deliveries.  Concurrently with the execution of this Amendment, the Borrower shall:

(a)    execute and deliver to the Administrative Agent, for its sole benefit, the First Amendment Administrative Agent Fee Letter, and pay to the Administrative Agent the fees stated therein;

(b)    cause each Guarantor of Payment to execute the attached Guarantor Acknowledgment and Agreement; and

(c)    pay all legal fees and expenses of the Administrative Agent in connection with this Amendment and any other Loan Documents.

4.    Representations and Warranties.  The Borrower hereby represents and warrants to the Administrative Agent and the Lenders that (a) the Borrower has the legal power and authority to execute and deliver this Amendment; (b) the officers executing this Amendment have been duly authorized to execute and deliver the same and bind the Borrower with respect to the provisions hereof; (c) the execution and delivery hereof by the Borrower and the performance and observance by the Borrower of the provisions hereof do not violate or conflict with the Organizational Documents of the Borrower or any material law applicable to the Borrower or result in a breach of any provision of or constitute a default under any other material agreement, instrument or document binding upon or enforceable against the Borrower; (d) except as waived herein, no Default or Event of Default exists, nor will any occur immediately after the execution and delivery of this Amendment or by the performance or observance of any provision hereof; (e) each of the representations and warranties contained in the Loan Documents is true and correct in all material respects as of the date hereof as if made on the date hereof, except to the extent that any such representation or warranty expressly states that it relates to an earlier date (in which case such representation or warranty is 

true and correct in all material respects as of such earlier date); (f) the Borrower is not aware of any claim or offset against, or defense or counterclaim to, the Borrower’s obligations or liabilities under the Credit Agreement or any other Related Writing; and (g) this Amendment constitutes a valid and binding obligation of the Borrower in every respect, enforceable in accordance with its terms, except as enforceability thereof may be limited by bankruptcy, insolvency, moratorium and similar laws and by equitable principles, whether considered at law or in equity.

5.    No Course of Dealing.  The Borrower acknowledges and agrees that this Amendment is not intended to, nor shall it, establish any course of dealing with respect to the various provisions amended herein, or otherwise, among the Borrower, the Administrative Agent and the Lenders that is inconsistent with the express terms of the Loan Documents.

6.    References to Credit Agreement and Ratification.  Each reference to the Credit Agreement that is made in the Credit Agreement or any other Related Writing shall hereafter be construed as a reference to the Credit Agreement as amended hereby.  Except as otherwise specifically provided herein, all terms and provisions of the Credit Agreement are confirmed and ratified and shall remain in full force and effect and be unaffected hereby. This Amendment is a Loan Document.

7.    Counterparts.  This Amendment may be executed in any number of counterparts, by different parties hereto in separate counterparts and by facsimile or other electronic signature, each of which, when so executed and delivered, shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement.

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

9.    Severability.  Any provision of this Amendment that shall be prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

10.    Governing Law.  The rights and obligations of all parties hereto shall be governed by the laws of the State of Ohio, without regard to principles of conflicts of laws.

[Remainder of page intentionally left blank.]

12005353.3

JURY TRIAL WAIVER.  THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS, TO THE EXTENT PERMITTED BY LAW, EACH HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AMENDMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.  THIS WAIVER SHALL NOT IN ANY WAY AFFECT, WAIVE, LIMIT, AMEND OR MODIFY THE ABILITY OF THE ADMINISTRATIVE AGENT OR THE LENDERS TO PURSUE REMEDIES PURSUANT TO ANY CONFESSION OF JUDGMENT OR COGNOVIT PROVISION CONTAINED IN ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT AMONG THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS.

IN WITNESS WHEREOF, the parties have executed and delivered this Amendment in Cleveland, Ohio as of the date first set forth above.

	
		
	 
	SIFCO INDUSTRIES, INC.

By: /s/ Salvatore Incanno   
Salvatore Incanno
Vice President and Chief Financial Officer

	 
	 

	 
	KEYBANK NATIONAL ASSOCIATION
   as the Administrative Agent and as a Lender

By: /s/ Thomas J. Evans   
Thomas J. Evans
Vice President

Signature Page to
First Amendment Agreement

GUARANTOR ACKNOWLEDGMENT AND AGREEMENT

The undersigned consent and agree to and acknowledge the terms of the foregoing First Amendment Agreement dated as of August 5, 2016.  The undersigned further agree that the obligations of the undersigned pursuant to the Guaranty of Payment executed by the undersigned are hereby ratified and shall remain in full force and effect and be unaffected hereby.

The undersigned hereby waive and release the Administrative Agent and the Lenders and their respective directors, officers, employees, attorneys, affiliates and subsidiaries from any and all claims, offsets, defenses and counterclaims of any kind or nature, absolute and contingent, of which the undersigned are aware or should be aware, such waiver and release being with full knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with respect thereto.

JURY TRIAL WAIVER.  THE UNDERSIGNED, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWER, THE ADMINISTRATIVE AGENT, THE LENDERS AND THE UNDERSIGNED, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS GUARANTOR ACKNOWLEDGMENT AND AGREEMENT, THE AMENDMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.  THIS WAIVER SHALL NOT IN ANY WAY AFFECT, WAIVE, LIMIT, AMEND OR MODIFY THE ABILITY OF THE ADMINISTRATIVE AGENT AND LENDERS TO PURSUE REMEDIES PURSUANT TO ANY CONFESSION OF JUDGMENT OR COGNOVIT PROVISION CONTAINED IN ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT AMONG THE BORROWER, THE ADMINISTRATIVE AGENT, LENDERS AND THE UNDERSIGNED.

	
		
	 
	GENERAL ALUMINUM FORGINGS, LLC
T & W FORGE, LLC
QUALITY ALUMINUM FORGE, LLC

By:   /s/ Salvatore Incanno         
Salvatore Incanno
Treasurer

Signature Page to
Guarantor Acknowledgment and Agreement

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