Document:

Exhibit 4.1

 

FOURTH AMENDMENT

to

AMENDED AND RESTATED CREDIT AGREEMENT

 

This FOURTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (the “Amendment”),
effective as of the 30th day of September, 2004, by and among
THERMADYNE INDUSTRIES, INC., a Delaware corporation (“Industries”),
THERMAL DYNAMICS CORPORATION, a Delaware corporation (“Dynamics”), TWECO
PRODUCTS, INC., a Delaware corporation (“Tweco”), VICTOR EQUIPMENT
COMPANY, a Delaware corporation (“Victor”), C & G SYSTEMS, INC., an
Illinois corporation (“C & G”), STOODY COMPANY, a Delaware
corporation (“Stoody”), THERMAL ARC, INC., a Delaware corporation (“Thermal
Arc”), PROTIP CORPORATION, a Missouri corporation (“ProTip”),
THERMADYNE INTERNATIONAL CORP., a Delaware corporation (“International”,
and collectively with ProTip, Thermal Arc, Stoody, C & G, Victor, Tweco,
Dynamics and Industries, the “Borrowers”), the other persons designated
as Credit Parties on the signature pages hereof, GENERAL ELECTRIC CAPITAL
CORPORATION, a Delaware corporation (“Agent”) and the Persons signatory
thereto from time to time as Lenders. 
Unless otherwise specified herein, capitalized terms used in this
Amendment shall have the meanings ascribed to them in Annex A to
the Credit Agreement and the Intercreditor Agreement (each as hereinafter
defined).

 

RECITALS

 

WHEREAS, the Borrowers, the Credit Parties,
Agent and Lenders have entered into that certain Amended and Restated Credit
Agreement dated as of February 5, 2004 (as further amended, supplemented,
restated or otherwise modified from time to time, the “Credit Agreement”
); and

 

WHEREAS, the Borrowers have requested that
Requisite Lenders amend certain provisions of the Credit Agreement to, among
other things, amend and restate the Financial Covenants;

 

NOW THEREFORE, in consideration of the mutual
execution hereof and other good and valuable consideration, the parties hereto
agree as follows:

 

1.             Amendment
to Section 6.3(a). Section 6.3(a) of the Credit Agreement is hereby amended
to amend and restate subsection (ix) thereof as follows:

 

“(ix)
Indebtedness of Foreign Subsidiaries (excluding Capital Lease Obligations) in
an aggregate outstanding principal amount not to exceed $15,000,000,”

 

2.             Amendment
to Section 5.9.  Section 5.9 of the
Credit Agreement is hereby amended by replacing “$75,000” in each of the two
places therein appearing with the amount “$100,000”.

 

3.             Amendment
and Restatement of Annex F.  Annex F
of the Credit Agreement is amended and restated in its entirety to read as
provided on Exhibit F attached hereto.

 

 

4.             Representations
and Warranties of Credit Parties. 
The Credit Parties represent and warrant that:

 

(a)               the execution,
delivery and performance by the Credit Parties of this Amendment have been duly
authorized by all necessary corporate action required on its part and this
Amendment is a legal, valid and binding obligation of the Credit Parties
enforceable against the Credit Parties in accordance with its terms except as
the enforcement thereof may be subject to (i) the effect of any applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors’
rights generally and (ii) general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law); and

 

(b)              after giving effect
to this Amendment, each of the representations and warranties contained in the
Credit Agreement 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 such
representations and warranties expressly relate to an earlier date.

 

5.             Conditions
To Effectiveness.  This Amendment
shall be effective upon the following (all in form and substance satisfactory
to Agent):

 

(a)             execution and
delivery of this Amendment by the Requisite Lenders and the Credit Parties; and

 

(b)             the Agent shall have
received a copy of a fully executed and delivered amendment, in form and
substance reasonably satisfactory to Agent, to that certain Second Lien Credit
Agreement, dated as of July 29, 2004, by and among the Borrowers, Credit Suisse
First Boston and the other Persons signatory thereto.

 

(c)             payment in full of
all fees, costs and expenses, including the reasonable fees, costs and expenses
of counsel or other advisors for advice, assistance, or other representation in
connection with this Amendment, as provided in Section 11.3(a) of the
Credit Agreement.

 

6.             Reference
To And Effect Upon The Credit Agreement.

 

(a)               The Credit
Agreement and the other Loan Documents shall remain in full force and effect,
as amended hereby, and are hereby ratified and confirmed.

 

(b)              The execution,
delivery and effectiveness of this Amendment shall not operate as a waiver of
any right, power or remedy of Agent or any Lender under the Credit Agreement or
any Loan Document, nor constitute a waiver or amendment of any provision of the
Credit Agreement or any Loan Document, except as specifically set forth
herein.  Upon the effectiveness of this
Amendment, each reference in the Credit Agreement to “this Credit Agreement,” “hereunder,”  “hereof,” “herein” or words of similar import
shall mean and be a reference to the Credit Agreement as amended hereby.

 

2

 

7.             Governing
Law.  THIS AMENDMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO
CONFLICTS OF LAWS PROVISIONS) OF THE STATE OF NEW YORK.

 

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

 

9.             Counterparts.  This Amendment may be executed in any number
of counterparts, each of which when so executed shall be deemed an original,
but all such counterparts shall constitute one and the same instrument.

 

10.           Reaffirmation
of Guaranties.  The Credit Parties
signatory hereto hereby reaffirm their Guaranties of the Obligations, taking
into account the provisions of this Amendment.

 

 

[Signature
pages follow]

 

3

 

IN WITNESS
WHEREOF, the parties hereto have executed and delivered this Amendment as of
the date first written above.

 

 

	
   

  	
  LENDERS:

  
	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL

  
	
   

  	
  CORPORATION,

  
	
   

  	
  as Agent and Lender

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Dennis W. Cloud

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  Dennis W. Cloud

  	
   

  
	
   

  	
   

  	
  Duly Authorized Signatory

  
					

 

S-1

 

	
   

  	
  BORROWERS:

  
	
   

  	
   

  
	
   

  	
  THERMADYNE INDUSTRIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James H. Tate

  
	
   

  	
  Name:

  	
   

  	
  James H. Tate

  
	
   

  	
  Title:

  	
   

  	
  Senior Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THERMAL DYNAMICS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James H. Tate

  
	
   

  	
  Name:

  	
   

  	
  James H. Tate

  
	
   

  	
  Title:

  	
   

  	
  Senior Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TWECO PRODUCTS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James H. Tate

  
	
   

  	
  Name:

  	
   

  	
  James H. Tate

  
	
   

  	
  Title:

  	
   

  	
  Senior Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VICTOR EQUIPMENT COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James H. Tate

  
	
   

  	
  Name:

  	
   

  	
  James H. Tate

  
	
   

  	
  Title:

  	
   

  	
  Senior Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  C & G SYSTEMS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James H. Tate

  
	
   

  	
  Name:

  	
   

  	
  James H. Tate

  
	
   

  	
  Title:

  	
   

  	
  Senior Vice President and CFO

  
						

 

 

	
   

  	
  STOODY COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James H. Tate

  
	
   

  	
  Name:

  	
   

  	
  James H. Tate

  
	
   

  	
  Title:

  	
   

  	
  Senior Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THERMAL ARC, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James H. Tate

  
	
   

  	
  Name:

  	
   

  	
  James H. Tate

  
	
   

  	
  Title:

  	
   

  	
  Senior Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THERMADYNE INTERNATIONAL CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James H. Tate

  
	
   

  	
  Name:

  	
   

  	
  James H. Tate

  
	
   

  	
  Title:

  	
   

  	
  Senior Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PROTIP CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James H. Tate

  
	
   

  	
  Name:

  	
   

  	
  James H. Tate

  
	
   

  	
  Title:

  	
   

  	
  Senior Vice President and CFO

  
						

 

 

The following Persons are signatories to this
Amendment in their capacity as Credit Parties and not as Borrowers and
acknowledge and agree to the foregoing (including, without limitation, Section
7 hereof) in such capacity.

 

 

	
   

  	
  THERMADYNE HOLDINGS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James H. Tate

  
	
   

  	
  Name:

  	
   

  	
  James H. Tate

  
	
   

  	
  Title:

  	
   

  	
  Senior Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THERMADYNE RECEIVABLES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James H. Tate

  
	
   

  	
  Name:

  	
   

  	
  James H. Tate

  
	
   

  	
  Title:

  	
   

  	
  Senior Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MECO HOLDING COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James H. Tate

  
	
   

  	
  Name:

  	
   

  	
  James H. Tate

  
	
   

  	
  Title:

  	
   

  	
  Senior Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  C&G SYSTEMS HOLDING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James H. Tate

  
	
   

  	
  Name:

  	
   

  	
  James H. Tate

  
	
   

  	
  Title:

  	
   

  	
  Senior Vice President and CFO

  
						

 

 

The following Persons is signatory to this Agreement in its capacity as
a Credit Party solely with respect to Section 6 of the Credit Agreement
and not as a Borrower.

 

 

	
   

  	
  THERMADYNE WELDING PRODUCTS

  CANADA LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James H. Tate

  
	
   

  	
  Name:

  	
   

  	
  James H. Tate

  
	
   

  	
  Title:

  	
   

  	
  Senior Vice President and CFO

  
						

 

 

EXHIBIT F

 

AMENDED AND RESTATED ANNEX F (Section 6.10)

to

CREDIT AGREEMENT

 

FINANCIAL COVENANTS

 

(a)           Financial
Covenants. Borrowers shall not breach or fail to comply with any of the
following financial covenants, each of which shall be calculated in accordance
with GAAP consistently applied:

 

(i)            Maximum
Capital Expenditures.  Holdings and its
Subsidiaries on a consolidated basis shall not make Capital Expenditures during
the following periods that exceed in the aggregate the amounts set forth
opposite each of such periods:

 

	
  Period

  	
   

  	
  Maximum Capital Expenditures per Period

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year 2003;

  	
   

  	
  $

  	
  18,000,000

  	
   

  
	
  Fiscal Year 2004;

  	
   

  	
  $

  	
  17,000,000

  	
   

  
	
  Fiscal Year 2005;

  	
   

  	
  $

  	
  17,000,000

  	
   

  
	
  Fiscal Year 2006;

  	
   

  	
  $

  	
  18,000,000

  	
   

  
	
  Fiscal Year 2007;

  	
   

  	
  $

  	
  18,000,000

  	
   

  
	
  Fiscal Year 2008;

  	
   

  	
  $

  	
  18,000,000

  	
   

  

 

;provided,
however, that the amount of permitted Capital Expenditures referenced
above will be increased in any period by the positive amount equal to the
lesser of (i) 50% of the amount of permitted Capital Expenditures for the
immediately prior period, and (ii) the amount (if any), equal to the difference
obtained by taking the Capital Expenditures limit specified above for the
immediately prior period minus the actual amount of any Capital
Expenditures expended during such prior period (the “Carry Over Amount”),
and for purposes of measuring compliance herewith, the Carry Over Amount shall
be deemed to be the last amount spent on Capital Expenditures in that
succeeding year; provided, further, that the amount of Capital
Expenditures for Fiscal Year 2003 and Fiscal Year 2004 shall not include up to
$5,500,000 of Capital Expenditures made in connection with the expansion of the
real property located in Denton, Texas to the extent financed with a Capital
Lease.

 

(ii)           Minimum
Fixed Charge Coverage Ratio. 
Holdings and its Subsidiaries shall have on a consolidated basis at the
end of each Fiscal Quarter, a Fixed Charge Coverage Ratio for the 12-month
period then ended (or with respect to the Fiscal Quarter ending on September
30, 2003, the period commencing on January 1, 2003 and ending on the last day
of such Fiscal Quarter) of not less than the following:

 

1.10 for the Fiscal Quarter ending December 31, 2003;

1.10 for the Fiscal Quarter ending March 31, 2004;

1.05 for the Fiscal Quarter ending June 30, 2004;

1.00 for the Fiscal Quarter ending September 30, 2004;

 

 

0.90 for the Fiscal Quarter ending December 31, 2004;

0.925 for the Fiscal Quarter ending March 31, 2005;

0.95 for the Fiscal Quarter ending June 30, 2004;

1.05 for the Fiscal Quarter ending September 30, 2005;

1.10 for the Fiscal Quarter ending December 30, 2005; and

1.10 for each Fiscal Quarter ending thereafter.

 

(iii)          Minimum
EBITDA.   Holdings and its
Subsidiaries on a consolidated basis shall have, at the end of each Fiscal
Quarter set forth below, EBITDA for the 12-month period then ended (or with respect
to the Fiscal Quarter ending on September 30, 2003, the period commencing on
January 1, 2003 and ending on the last day of such Fiscal Quarter) of not less
than the following:

 

	
  Period

  	
   

  	
  EBITDA

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Quarter ending December 31, 2003

  	
   

  	
  $

  	
  48,000,000

  	
   

  
	
  Fiscal Quarter ending March 31, 2004

  	
   

  	
  $

  	
  46,500,000

  	
   

  
	
  Fiscal Quarter ending June 30, 2004

  	
   

  	
  $

  	
  47,600,000

  	
   

  
	
  Fiscal Quarter ending September 30, 2004

  	
   

  	
  $

  	
  47,000,000

  	
   

  
	
  Fiscal Quarter ending December 31, 2004

  	
   

  	
  $

  	
  46,000,000

  	
   

  
	
  Fiscal Quarter ending March 31, 2005

  	
   

  	
  $

  	
  46,000,000

  	
   

  
	
  Fiscal Quarter ending June 30, 2005

  	
   

  	
  $

  	
  46,000,000

  	
   

  
	
  Fiscal Quarter ending September 30, 2005

  	
   

  	
  $

  	
  49,600,000

  	
   

  
	
  Fiscal Quarter ending December 31, 2005

  	
   

  	
  $

  	
  53,360,000

  	
   

  
	
  Fiscal Quarter ending March 31, 2006

  	
   

  	
  $

  	
  55,440,000

  	
   

  
	
  Fiscal Quarter ending June 30, 2006

  	
   

  	
  $

  	
  57,600,000

  	
   

  
	
  Fiscal Quarter ending September 30, 2006

  	
   

  	
  $

  	
  59,760,000

  	
   

  
	
  Fiscal Quarter ending December 31, 2006

  	
   

  	
  $

  	
  61,070,000

  	
   

  
	
  Fiscal Quarter ending March 31, 2007

  	
   

  	
  $

  	
  60,875,000

  	
   

  
	
  Fiscal Quarter ending June 30, 2007

  	
   

  	
  $

  	
  61,350,000

  	
   

  
	
  Fiscal Quarter ending September 30, 2007

  	
   

  	
  $

  	
  61,825,000

  	
   

  
	
  Fiscal Quarter ending December 31, 2007

  	
   

  	
  $

  	
  62,300,000

  	
   

  
	
  Fiscal Quarter ending March 31, 2008

  	
   

  	
  $

  	
  62,775,000

  	
   

  
	
  Fiscal Quarter ending June 30, 2008

  	
   

  	
  $

  	
  63,250,000

  	
   

  
	
  Fiscal Quarter ending September 30, 2008

  	
   

  	
  $

  	
  63,725,000

  	
   

  
	
  Fiscal Quarter ending December 31, 2008

  	
   

  	
  $

  	
  64,200,000

  	
   

  

 

(iv)          Maximum
Leverage Ratio.  Holdings and its
Subsidiaries on a consolidated basis shall have, at the end of each Fiscal
Quarter set forth below, a Leverage Ratio as of the last day of such Fiscal
Quarter and for the 12-month period then ended (or with respect to the Fiscal
Quarter ending on September 30, 2003, the period commencing on January 1, 2003
and ending on the last day of such Fiscal Quarter) of not more than the
following:

 

5.00 for the Fiscal Quarter ending December 31, 2003;

5.00 for the Fiscal Quarter ending March 31, 2004;

5.00 for the Fiscal Quarter ending June 30, 2004;

5.50 for the Fiscal Quarter ending September 30, 2004;

 

 

5.50 for the Fiscal Quarter ending December 31, 2004;

5.25 for the Fiscal Quarter ending March 31, 2005;

4.75 for the Fiscal Quarter ending June 30, 2005;

4.25 for the Fiscal Quarter ending September 30, 2005; and

4.00 for each Fiscal Quarter ending thereafter.

 

(b)           Enhanced Financial
Covenants:

 

(i)            Minimum Fixed
Charge Coverage Ratio.  Holdings and
its Subsidiaries shall have, on a consolidated basis, a Fixed Charge Coverage
Ratio for the 12-month period ending April 30, 2004 of not less than 1.25.

 

(ii)           Minimum EBITDA.
Holdings and its Subsidiaries shall have, on a consolidated basis, EBITDA for
the 12-month period ending April 30, 2004 of not less than $51,000,000.

 

(iii)          Maximum
Leverage Ratio.  Holdings and its
Subsidiaries shall have, on a consolidated basis, a Leverage Ratio for the
12-month period ending April 30, 2004 of not more than 4.25.

 

Unless otherwise specifically provided
herein, any accounting term used in the Agreement shall have the meaning
customarily given such term in accordance with GAAP, and all financial
computations hereunder shall be computed in accordance with GAAP consistently
applied.  That certain items or
computations are explicitly modified by the phrase “in accordance with GAAP”
shall in no way be construed to limit the foregoing.  If any “Accounting Changes” (as defined
below) occur and such changes result in a change in the calculation of the
financial covenants, standards or terms used in the Agreement or any other Loan
Document, then Borrowers, Agent and Lenders agree to enter into negotiations in
order to amend such provisions of the Agreement so as to equitably reflect such
Accounting Changes with the desired result that the criteria for evaluating
Borrowers’ and their Subsidiaries’ financial condition shall be the same after
such Accounting Changes as if such Accounting Changes had not been made; provided,
however, that the agreement of Requisite Lenders to any required
amendments of such provisions shall be sufficient to bind all Lenders.  “Accounting Changes” means (i) changes
in accounting principles required by the promulgation of any rule, regulation,
pronouncement or opinion by the Financial Accounting Standards Board of the
American Institute of Certified Public Accountants (or successor thereto or any
agency with similar functions); (ii) changes in accounting principles concurred
in by any Borrower’s certified public accountants; (iii) purchase accounting
adjustments under A.P.B. 16 or 17 and EITF 88-16, and the application of the
accounting principles set forth in FASB 109, including the establishment of
reserves pursuant thereto and any subsequent reversal (in whole or in part) of
such reserves; and (iv) the reversal of any reserves established as a result of
purchase accounting adjustments.  All
such adjustments resulting from expenditures made subsequent to the Closing
Date (including capitalization of costs and expenses or payment of pre-Closing
Date liabilities) shall be treated as expenses in the period the expenditures
are made and deducted as part of the calculation of EBITDA in such period.  If Agent, Borrowers and Requisite Lenders
agree upon the required amendments, then after appropriate amendments have been
executed and the underlying Accounting Change with respect thereto has been implemented,
any reference to GAAP contained in the Agreement or in 

 

 

any other Loan Document shall, only to the
extent of such Accounting Change, refer to GAAP, consistently applied after
giving effect to the implementation of such Accounting Change.  If Agent, Borrowers and Requisite Lenders cannot
agree upon the required amendments within thirty (30) days following the date
of implementation of any Accounting Change, then all Financial Statements
delivered and all calculations of financial covenants and other standards and
terms in accordance with the Agreement and the other Loan Documents shall be
prepared, delivered and made without regard to the underlying Accounting
Change.  For purposes of Section 8.1,
a breach of a Financial Covenant contained in this Annex F shall be
deemed to have occurred as of any date of determination by Agent or as of the
last day of any specified measurement period, regardless of when the Financial
Statements reflecting such breach are delivered to Agent.Exhibit 4.2

 

EXECUTION COPY

 

AMENDMENT NO. 1 AND AGREEMENT (this “Amendment”) effective as of September
30, 2004, to the Second Lien Credit Agreement dated as of July 29, 2004
(the “Credit Agreement”),
among THERMADYNE INDUSTRIES, INC., a Delaware corporation (“Industries”), THERMAL
DYNAMICS CORPORATION, a Delaware corporation (“Dynamics”), TWECO PRODUCTS, INC., a
Delaware corporation (“Tweco”),
VICTOR EQUIPMENT COMPANY, a Delaware corporation (“Victor”), C & G
SYSTEMS, INC., an Illinois corporation (“C & G”), STOODY COMPANY,  a Delaware corporation (“Stoody”), THERMAL
ARC, INC., a Delaware corporation (“Thermal Arc”), PROTIP CORPORATION, a Missouri
corporation (“ProTip”),
and THERMADYNE INTERNATIONAL CORP., a Delaware corporation  (“International” and, together with ProTip,
Thermal Arc, Stoody, C & G, Victor, Tweco, Dynamics and Industries, the “Borrowers”), the
Guarantors party thereto, the Lenders from time to time party thereto and
CREDIT SUISSE FIRST BOSTON, as administrative agent (in such capacity, the “Administrative Agent”)
and collateral agent (in such capacity, the “Collateral Agent”).

 

A.            Pursuant
to the Credit Agreement, the Lenders have extended credit to the Borrowers.

 

B.            The
Borrowers have requested certain amendments to the Credit Agreement as set
forth herein.  The Borrowers have also
requested that the lenders under the First Lien Credit Agreement agree to enter
into an amendment thereof substantially in the form attached as Annex I hereto
(the “First Lien
Amendment”).

 

C.            In
order to induce the Administrative Agent and the Lenders to enter into this
Amendment, the Borrowers have agreed to certain matters relating to the
granting of Guaranties and Liens by Foreign Subsidiaries as set forth herein.

 

D.            Capitalized
terms used but not defined herein shall have the meanings assigned to them in
the Credit Agreement.

 

Accordingly, in consideration of the mutual
agreements herein contained and other good and valuable consideration, the
sufficiency and receipt of which are hereby acknowledged, the parties hereto
agree as follows:

 

SECTION 1.  Amendments.  (a) Section 1.01 of the
Credit Agreement is hereby amended by inserting the following definition
therein in appropriate alphabetical order:

 

““First
Amendment” shall mean Amendment No. 1 and Agreement effective as
of September 30, 2004, among the Borrowers, the Guarantors, the Lenders party
thereto and the Administrative Agent.”.

 

(a)           The
definition of the term “First Priority Liens” set forth in Section 1.01 of
the Credit Agreement is hereby amended and restated in its entirety to read as
follows:

 

 

““First Priority Liens” shall mean the Liens
granted by the Credit Parties to secure the obligations under the First Lien
Credit Agreement.”.

 

(b)           The
definition of the term “Guarantors” set forth in Section 1.01 of the
Credit Agreement is hereby amended and restated in its entirety to read as
follows:

 

““Guarantors” shall
mean Holdings, Thermadyne Receivables, MECO Holding, C&G Holding, each
Domestic Subsidiary of a Borrower, and each Foreign Subsidiary of a Borrower
becoming a Guarantor pursuant to the terms of the First Amendment.  The Guarantors on the Closing Date are listed
on Schedule 1.01.”.

 

(c)           The
definition of the term “Maturity Date” set forth in Section 1.01 of the
Credit Agreement is hereby amended and restated in its entirety to read as
follows:

 

““Maturity Date” shall
mean July 22, 2005.”.

 

(d)           Section
5.09 of the Credit Agreement is hereby amended by replacing the amount
“$75,000” in each of the two places therein appearing with the amount “$100,000”.

 

(e)           Section
6.03(a) is hereby amended by amending and restating clause (ix) thereof in its
entirety to read as follows:

 

“(ix)
Indebtedness of Foreign Subsidiaries (excluding Capital Lease Obligations) in
an aggregate outstanding principal amount not to exceed $15,000,000;”.

 

(f)            The
table appearing in Section 6.10 (Maximum
Leverage Ratio) of the Credit Agreement is hereby amended and
restated in its entirety to read as follows:

 

	
  Date or Period

  	
   

  	
  Ratio

  	
   

  
	
  Closing Date through September 30, 2004

  	
   

  	
  6.00 to 1.00

  	
   

  
	
  October 1, 2004 through December 31, 2004

  	
   

  	
  6.00 to 1.00

  	
   

  
	
  January 1, 2005 through March 31, 2005

  	
   

  	
  5.75 to 1.00

  	
   

  
	
  April 1, 2005 through June 30, 2005

  	
   

  	
  5.25 to 1.00

  	
   

  
	
  July 1, 2005 through September 30, 2005

  	
   

  	
  4.75 to 1.00

  	
   

  

 

SECTION 2.  Foreign
Guaranties and Collateral.
(a) Upon any Foreign Subsidiary guaranteeing any Indebtedness or other
obligations under the First Lien Facilities (any such guaranty, a “First Lien Foreign Guaranty”
and any such Foreign Subsidiary, a “Foreign Subsidiary Guarantor”), the Borrowers
shall, at the Borrowers’ expense, substantially simultaneously with the giving
of such First Lien Foreign Guarantee, cause such Foreign Subsidiary Guarantor
to duly execute and deliver to the Administrative Agent a guaranty in form and
substance reasonably satisfactory to the Administrative Agent, guaranteeing the
Obligations of each Credit Party (any such guaranty, a “Second Lien Foreign Guaranty”).  The Administrative Agent, in its capacity as
Second Lien Agent under the Intercreditor Agreement, agrees to enter into, on
or before the date on which the Second Lien Guaranty is required to be

 

2

 

satisfied in accordance with the immediately
preceding sentence, such amendments to the Intercreditor Agreement as may be
reasonably requested by the First Lien Agent thereunder to address the
applicable procedural or substantive provisions of any foreign insolvency,
administration or liquidation law or other foreign law for the relief of debtors
in connection with the granting of any Second Priority Foreign Guaranty (provided that the Administrative Agent, in
such capacity, shall not be required to enter into any such amendment to the
extent the provisions thereof, when taken as a whole, are less favorable in any
material respect to the Second Lien Lenders than the comparable provisions
relating to the Bankruptcy Code set forth in Section 7 of the Intercreditor
Agreement).

 

(a)           If
any First Lien Foreign Guaranty is secured by any Lien (a “First Priority Foreign Lien”)
on any assets of any Foreign Subsidiary Guarantor, the Borrowers shall, at the
Borrowers’ expense, use their reasonable best efforts to, as promptly as
practicable, and in any event within 30 days of the granting of the applicable
First Priority Foreign Lien, (i) cause such Foreign Subsidiary Guarantor to
enter into one or more security agreements in form and substance reasonably
satisfactory to the Administrative Agent, granting a legal, valid and
enforceable second priority Lien (a “Second Priority Foreign Lien”) in the same
assets of such Foreign Subsidiary Guarantor that secure the First Lien Foreign
Guaranty of such Foreign Subsidiary Guarantor and (ii) cause to be delivered to
the Administrative Agent one or more legal opinions reasonably satisfactory to
it with respect to such security agreements and such Second Priority Foreign
Lien (the requirements set forth in the foregoing clause (i) and this clause
(ii), collectively, the “Second
Lien Foreign Security Requirements”).  The Administrative Agent, in its capacity as
Second Lien Agent under the Intercreditor Agreement, agrees to enter into, on
or before the date on which the Second Lien Foreign Security Requirements are
required to be satisfied in accordance with the immediately preceding sentence
(such date, the “Required
Date”), such amendments to the Intercreditor Agreement as may be
reasonably requested by the First Lien Agent thereunder to address the
applicable procedural or substantive provisions of any foreign insolvency,
administration or liquidation law or other foreign law for the relief of
debtors in connection with the granting of any Second Priority Foreign Lien (provided that the Administrative Agent, in
such capacity, shall not be required to enter into any such amendment to the
extent the provisions thereof, when taken as a whole, are less favorable in any
material respect to the Second Lien Lenders than the comparable provisions
relating to the Bankruptcy Code set forth in Section 7 of the Intercreditor
Agreement).  If the Second Lien Foreign
Security Requirements have not been satisfied on or before the Required Date,
the Applicable Percentage with respect to any Loan shall, from and after the
Required Date, be increased by 0.50% per annum above the Applicable Percentage
that would otherwise be applicable to such Loan.

 

SECTION 3.  Representations
and Warranties.  To induce the other parties hereto to enter
into this Amendment, the Credit Parties represent and warrant to each of the
Lenders, the Administrative Agent and the Collateral Agent, that, after giving
effect to this Amendment, (a) the representations and warranties set forth
in Article III of the Credit Agreement are true and correct in all
material respects on and as of the date hereof, except to the extent such
representations and warranties expressly relate to an earlier date, and
(b) no Default or Event of Default has occurred and is continuing.

 

3

 

SECTION 4.  Effectiveness.  This
Amendment shall become effective as of the date set forth above on the date
that (a) the Administrative Agent (or its counsel) shall have received
counterparts of this Amendment that, when taken together, bear the signatures
of the Borrowers, the Guarantors and the Lenders, (b) the First Lien Amendment
shall have become effective in accordance with its terms and (c) the Borrowers
shall have paid to each Lender an amendment fee in an amount equal to 1.00% of
the aggregate principal amount of such Lender’s outstanding Loans on the date
hereof.

 

SECTION 5.  Effect of
Amendment.  Except as expressly set forth herein, this
Amendment shall not by implication or otherwise limit, impair, constitute a
waiver of, or otherwise affect the rights and remedies of the Lenders, the
Administrative Agent or the Collateral Agent under the Credit Agreement or any
other Loan Document, and shall not alter, modify, amend or in any way affect
any of the terms, conditions, obligations, covenants or agreements contained in
the Credit Agreement or any other Loan Document, all of which are ratified and
affirmed in all respects and shall continue in full force and effect.  Nothing herein shall be deemed to entitle any
Credit Party to a consent to, or a waiver, amendment, modification or other
change of, any of the terms, conditions, obligations, covenants or agreements
contained in the Credit Agreement or any other Loan Document in similar or
different circumstances.  This Amendment
shall apply and be effective only with respect to the provisions of the Credit
Agreement specifically referred to herein. 
After the date hereof, any reference to the Credit Agreement shall mean
the Credit Agreement, as modified hereby. 
This Amendment shall constitute a “Loan Document” for all purposes of
the Credit Agreement and the other Loan Documents.

 

SECTION 6.  Counterparts.  This
Amendment may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same contract. 
Delivery of an executed counterpart of a signature page of this
Amendment by facsimile transmission shall be as effective as delivery of a
manually executed counterpart hereof.

 

SECTION 7.  Applicable Law.  THIS
AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

 

SECTION 8.  Headings.  The
headings of this Amendment are for purposes of reference only and shall not
limit or otherwise affect the meaning hereof.

 

SECTION 9.  Expenses.  The
Borrowers agree to reimburse the Administrative Agent for all out-of-pocket
expenses in connection with this Amendment, including the reasonable fees,
charges and disbursements of Cravath, Swaine & Moore LLP, counsel for
the Administrative Agent.

 

SECTION 10.  Reaffirmation.  Each of
the Guarantors hereby acknowledges receipt and notice of, and consents to the
terms of, this Amendment, and affirms and confirms its guarantee of the
Obligations and, if applicable, the pledge of and/or grant of a security
interest in its assets as Collateral to secure the Obligations, all as provided
in the Collateral Documents as 

 

4

 

originally executed, and acknowledges and agrees
that such guarantee, pledge and/or grant of security interest continue in full
force and effect in respect of, and to secure, the Obligations under the Credit
Agreement, as amended hereby, and the other Loan Documents.

 

[Remainder of this page intentionally left blank]

 

5

 

IN WITNESS WHEREOF, each of the parties
hereto has caused this Amendment to be executed and delivered by its duly
authorized officer as of the date first set forth above.

 

	
   

  	
  THERMADYNE INDUSTRIES, INC.,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ 

  	
  James H.
  Tate

  
	
   

  	
   

  	
  Name:

  	
  James H. Tate

  
	
   

  	
   

  	
  Title:

  	
  Sr. VP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THERMAL DYNAMICS

  CORPORATION,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ 

  	
  James H.
  Tate

  
	
   

  	
   

  	
  Name:

  	
  James H. Tate

  
	
   

  	
   

  	
  Title:

  	
  Sr. VP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TWECO PRODUCTS, INC.,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ 

  	
  James H.
  Tate

  
	
   

  	
   

  	
  Name:

  	
  James H. Tate

  
	
   

  	
   

  	
  Title:

  	
  Sr. VP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VICTOR EQUIPMENT COMPANY,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ 

  	
  James H.
  Tate

  
	
   

  	
   

  	
  Name:

  	
  James H. Tate

  
	
   

  	
   

  	
  Title:

  	
  Sr. VP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  C & G SYSTEMS, INC.,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ 

  	
  James H.
  Tate

  
	
   

  	
   

  	
  Name:

  	
  James H. Tate

  
	
   

  	
   

  	
  Title:

  	
  Sr. VP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  STOODY COMPANY,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ 

  	
  James H.
  Tate

  
	
   

  	
   

  	
  Name:

  	
  James H. Tate

  
	
   

  	
   

  	
  Title:

  	
  Sr. VP & CFO

  

 

 

	
   

  	
  THERMAL ARC, INC.,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ 

  	
  James H.
  Tate

  
	
   

  	
   

  	
  Name:

  	
  James H. Tate

  
	
   

  	
   

  	
  Title:

  	
  Sr. VP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PROTIP CORPORATION,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ 

  	
  James H.
  Tate

  
	
   

  	
   

  	
  Name:

  	
  James H. Tate

  
	
   

  	
   

  	
  Title:

  	
  Sr. VP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THERMADYNE INTERNATIONAL

  CORP.,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ 

  	
  James H.
  Tate

  
	
   

  	
   

  	
  Name:

  	
  James H. Tate

  
	
   

  	
   

  	
  Title:

  	
  Sr. VP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THERMADYNE HOLDINGS

  CORPORATION,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ 

  	
  James H.
  Tate

  
	
   

  	
   

  	
  Name:

  	
  James H. Tate

  
	
   

  	
   

  	
  Title:

  	
  Sr. VP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THERMADYNE RECEIVABLES, INC.,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ 

  	
  James H.
  Tate

  
	
   

  	
   

  	
  Name:

  	
  James H. Tate

  
	
   

  	
   

  	
  Title:

  	
  Sr. VP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MECO HOLDING COMPANY,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ 

  	
  James H.
  Tate

  
	
   

  	
   

  	
  Name:

  	
  James H. Tate

  
	
   

  	
   

  	
  Title:

  	
  Sr. VP & CFO

  

 

 

	
   

  	
  C&G SYSTEMS HOLDING, INC.,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ 

  	
  James H.
  Tate

  
	
   

  	
   

  	
  Name:

  	
  James H. Tate

  
	
   

  	
   

  	
  Title:

  	
  Sr. VP & CFO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THERMADYNE WELDING PRODUCTS
  LIMITED,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ 

  	
  James H.
  Tate

  
	
   

  	
   

  	
  Name:

  	
  James H. Tate

  
	
   

  	
   

  	
  Title:

  	
  Sr. VP & CFO

  

 

 

	
   

  	
  CREDIT SUISSE FIRST BOSTON,
  acting

  through its Cayman Islands Branch,

  individually and as Administrative Agent

  and Collateral Agent, 

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ 

  	
  Joseph
  Adipietro

  
	
   

  	
   

  	
  Name:

  	
  Joseph Adipietro

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ 

  	
  Joshua
  Parrish

  
	
   

  	
   

  	
  Name:

  	
  Joshua Parrish

  
	
   

  	
   

  	
  Title:

  	
  Associate

  

 

 

	
   

  	
  SIGNATURE PAGE TO AMENDMENT NO. 1

  AND AGREEMENT TO THERMADYNE

  SECOND LIEN CREDIT AGREEMENT DATED

  AS OF JULY 29, 2004

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name of Financial Institution:

  	
   

  	
  CSFB Credit
  Opportunities Fund (Helios), L.P.

  
	
   

  	
   

  	
  CSFB Credit
  Opportunities Fund (Employee), L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By its
  Investment Manager, CSFB

  Alternative Capital, Inc.

  
	
   

  	
   

  	
  /s/ 

  	
  Lisa Conrad

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Lisa Conrad

  
	
   

  	
   

  	
  Title:

  	
  Attorney in Fact

  
	
   

  	
  by

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
							

 

 

ANNEX I

 

Form of First Lien Amendment

 

(see attached)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]