Document:

Second Consent Letter and Second Amendment to Amended and Restated Credit Agmt

 Exhibit 10.10 
 SECOND CONSENT LETTER 
 AND 
 SECOND AMENDMENT TO AMENDED AND 
 RESTATED CREDIT AND SECURITY AGREEMENT 
 June 23, 2006 
 PNA Group, Inc. 
     and the other Borrowers referred to
below 
     and Travel Holding Corporation 
 c/o Travel Holding Corporation 
 360 North Crescent Drive, South Building 
 Beverly Hills, California 90210 
 Attention: Eva M. Kalawski, Esq. 
 Ladies and Gentlemen: 
 Reference is hereby made to that
certain Amended and Restated Credit and Security Agreement, dated May 9, 2006 (the “Original Credit Agreement”), among PNA Group, Inc., a Delaware corporation and successor by merger to Travel Merger Corporation (“PNA”),
Smith Pipe & Steel Company, an Arizona corporation (“Smith”), Infra-Metals Co., a Georgia corporation (“Infra-Metals”), Feralloy Corporation, a Delaware corporation (“Feralloy”), Delta Steel L.P., a Texas
limited partnership (“Delta Steel”), Delta GP, L.L.C., a Texas limited liability company (“Delta GP”), Delta LP, L.L.C., a Delaware limited liability company (“Delta LP”), Delnor Corporation, a Texas corporation
(“Delnor”), and Travel Main Corporation, a Delaware corporation (“Travel Main”; PNA, Smith, Infra-Metals, Feralloy, Delta Steel, Delta GP, Delta LP, Delnor, and Travel Main are hereinafter referred to collectively as
“Original Borrowers” and each individually as an “Original Borrower”); the various financial institutions that are signatories thereto as lenders (together with their respective successors and assigns, the “Lenders”);
Bank of America, N.A., a national banking association, as collateral and administrative agent for the Lenders (together with its successors in such capacity, “Administrative Agent”); and the other Agents named therein, as modified and
amended by that certain First Consent and First Amendment to Amended and Restated Credit and Security Agreement, dated as of May 31, 2006 (the “First Consent”), among the Original Borrowers, the Lenders party thereto and
Administrative Agent, and as further amended and supplemented by that certain Joinder Agreement and Supplement to Amended and Restated Credit and Security Agreement, dated as of May 31, 2006 (the “Joinder Agreement”), among the
Original Borrowers, Lockwood Acquisition, LLC, a Delaware limited liability company (“Lockwood Acquisition”), Clinton & Lockwood, Ltd., a Texas limited partnership (“C&L”), Metals Supply Company, Ltd., a Texas
limited partnership (“Metals Supply”), and MSC Management, Inc., a Texas corporation (“MSC”; and Lockwood Acquisition, C&L, Metals Supply and MSC are hereinafter referred to as “New Borrowers” and each individually
a “New Borrower”; and New Borrowers and Original Borrowers are hereinafter referred to as “Borrowers” and each individually as a “Borrower”), and Administrative Agent (such Existing Credit Agreement, as modified amended
by such First Consent and as further amended and supplemented by such Joinder Agreement, the “Credit Agreement”). Each capitalized term used herein and not otherwise defined herein shall have the meaning ascribed to such term in the Credit
Agreement. 
 Borrowers have requested that Administrative Agent and Lenders consent to, and subject to the terms and conditions contained
herein, Administrative Agent and Lenders are willing to consent to, the following (collectively, the “Proposed Transactions”): (i) the replacement of the Platinum Notes (as 

 PNA Group, Inc. and the other Borrowers 
 and Travel Holding Corporation 
 June 23, 2006 
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defined in the First Consent”) with (A) that certain replacement Promissory Note dated as of May 31, 2006 in the principal amount of
$31,904,856.00 from New Parent payable to the order of Platinum Equity Capital Partners, L.P., (B) that certain replacement Promissory Note dated as of May 31, 2006 in the principal amount of $8,765,070.00 from New Parent payable to the
order of Platinum Equity Capital Partners-A, L.P., (C) that certain replacement Promissory Note dated as of May 31, 2006 in the principal amount of $5,960,248.00 from New Parent payable to the order of Platinum Equity Capital
Partners PF, L.P., and (D) that certain replacement Promissory Note dated as of May 31, 2006 in the principal amount of $7,590,959.00 from New Parent payable to the order of Platinum Travel Principals, LLC, in the forms attached as
Exhibit A to this Consent Letter (the “New Platinum Notes”), (ii) the replacement of that certain letter agreement, dated as of May 31, 2006 (the “Existing Platinum Letter Agreement”), among Platinum Equity Capital
Partners, L.P., Platinum Equity Capital Partners-A, L.P., Platinum Equity Capital Partners-PF, L.P., Platinum Travel Principals, LLC, New Parent and Administrative Agent with a letter agreement substantially in the form of Exhibit B to this
Consent Letter (the “New Platinum Letter Agreement”), and (iii) one or more Distributions by PNA to New Parent in the amounts of (i) the accrued and unpaid interest on the New Platinum Notes (which shall accrue from May 31,
2006) from time to time and (ii) the amount of Additional Paid in Capital (as defined in the First Consent and hereinafter referred to as the “Additional Paid Capital”) contributed to PNA in connection with the Acquisition (as defined
in the First Consent and hereinafter referred to as the “Acquisition”) (to the extent such Distributions are permitted to be made pursuant to the terms of Section 2(d) of this Second Consent and Second Amendment to Amended and
Restated Credit and Security Agreement (this “Consent Letter”)). 
 1. Consent. Subject to the satisfaction of
the conditions precedent set forth below and the other terms contained herein, Administrative Agent and Lenders hereby consent to the Proposed Transactions. Administrative Agent’s and Lenders’ consent to the Proposed Transactions shall be
subject to satisfaction of the following conditions precedent in form and substance satisfactory to Administrative Agent: 
 a. both before and after giving effect to the Proposed Transactions, no Default or Event of Default shall then exist (including, without limitation, under Section 12.1.6 of the Credit Agreement as it relates to Debt incurred pursuant
to Section 10.2.3(ii) of the Credit Agreement); 
 b. Administrative Agent shall have received an executed copy of the
New Platinum Notes and such New Platinum Notes shall include an interest rate thereon that is acceptable to Administrative Agent, shall require the payment of interest only (and not principal) until maturity, shall mature no sooner than the date
ninety (90) days following the last day of the Term, shall not be secured by the Equity Interests of any Borrower or any Subsidiary of a Borrower or any assets of a Borrower or a Subsidiary of a Borrower and otherwise shall be in form and
substance satisfactory to Administrative Agent; 
 c. Borrowers shall have agreed to the amendments to the Credit Agreement
set forth in Section 2 hereof (including, without limitation, the terms on which Distributions with respect to, or on account of, interest on the New Platinum Notes and the Additional Paid in Capital may be made); 
 d. without limiting the generality of the foregoing items, Borrowers shall have delivered or caused to be delivered to Administrative
Agent, in form and substance satisfactory to Administrative Agent, such additional information, instruments, resolutions, documents, agreements, certificates and other items as Administrative Agent may reasonably request; 

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 e. Administrative Agent, for the benefit of each Lender executing this Consent
Letter, shall have received payment of a consent fee in the amount of five basis points (.0005) of the amount of Commitments of such Lender; and 
 f. Administrative Agent shall have received executed counterparts of this Consent Letter from Required Lenders, each Borrower and New Parent. 
 2. Acknowledgements, Agreements and Amendments. 
 a. Borrowers, Administrative Agent and Lenders hereby agree that the Debt evidenced by the New Platinum Notes, as amended or replaced from
time to time, constitutes “Subordinated Debt” under the Credit Agreement. 
 b. Section 1.1 of the Credit
Agreement is hereby modified and amended to add the following definitions of “New Platinum Notes” and “Second Consent Letter” therein in the appropriate alphabetical order: 
 ““New Platinum Notes” as defined in the Second Consent Letter.” 
 ““Second Consent Letter” that certain Second Consent Letter and Second Amendment to Amended and Restated Credit and
Security Agreement dated as of June 23, 2006 among Borrowers, Administrative Agent and the Lenders party thereto. 
 c.
Section 1.1 of the Credit Agreement is hereby modified and amended to delete the existing definitions of “Consolidated Fixed Charge Coverage Ratio” and “Consolidated Fixed Charges” therein and to substitute the following
therefor. 
 ““Consolidated Fixed Charge Coverage Ratio” - for any period of Borrowers and their Subsidiaries, on a
Consolidated basis, the ratio of (i) Consolidated EBITDA for such period minus Unfinanced Capital Expenditures for such period minus cash income taxes paid minus Distributions (other than the return of capital contemplated
by Section 2(d)(ii) of the Second Consent Letter) to (ii) (without duplication) Consolidated Fixed Charges for such period.” 
 ““Consolidated Fixed Charges” - for any fiscal period of Borrowers and their Subsidiaries, on a Consolidated basis, the sum of Borrowers’ and their Subsidiaries’ (i) cash interest expense in respect of
their Funded Debt (including, without duplication, in respect of the Seller Note and the New Platinum Notes but excluding interest on the Seller Note and the New Platinum Notes paid through a Distribution), plus (ii) scheduled payments of
principal on their Funded Debt paid during such period (excluding the Revolver Loans and excluding payments on the Seller Note and the New Platinum Notes that have been paid through a Distribution) plus (iii) to the extent not covered in the
foregoing clause (ii), principal payments made during such period on Subordinated Debt (excluding payments on the Seller Note and the New Platinum Notes paid through a Distribution).” 

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 and Travel Holding Corporation 
 June 23, 2006 
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 d. Borrowers, Administrative Agent and Lenders hereby agree that the Credit Agreement
is hereby modified and amended to the extent necessary to provide that: 
 (i) Borrowers may make Distributions to New Parent
in an amount equal to accrued and unpaid interest on the New Platinum Notes (which shall accrue from May 31, 2006) so long as such proceeds are used to make such payments of interest and so long as no Default or Event of Default exists or would
be caused thereby, and 
 (ii) No Distribution shall be made with respect to, or on account of, the Additional Paid in Capital
except that Borrowers may make up to three (3) Distributions equal, in the aggregate, to the amount of the Additional Paid in Capital to New Parent so long as (x) each such payment is made after completion of the field audit contemplated
by Section 2(d) of the First Consent, (y) such funds are used to make principal payments on the New Platinum Notes, and (z): 
  

	 	(A)	(1) such payment is made from the proceeds of Debt incurred under Section 10.2.3(vii) of the Credit Agreement, (2) no Default or Event of Default exists or would be caused
thereby, (3) the Term Loans have been Paid in Full, (4) after giving pro forma effect to such payment and, subject to Section 2(d) of the First Consent and the terms of the Credit Agreement, the inclusion of any Accounts and Inventory
of the Acquired Entities (as defined in the First Consent and hereinafter referred to as the “Acquired Entities”) in the Borrowing Base, Availability as of the date of such payment shall be at least $50,000,000 and (5) such payment
occurs no later than the date sixty (60) days following the date of receipt by Borrowers of the net proceeds of the Debt incurred under Section 10.2.3(vii) of the Credit Agreement, or 

  

	 	(B)	(1) no Default or Event of Default exists or would be caused thereby, (2) after giving pro forma effect to such payment and, subject to Section 2(d) of the First Consent
and the terms of the Credit Agreement, the inclusion of any Accounts and Inventory of the Acquired Entities in the Borrowing Base, Availability as of the date of such payment shall be at least $50,000,000, (3) the aggregate amount of all
payments made under this clause (B) shall not exceed the sum of (aa) $35,000,000 less the amount of Revolver Loans made on the date of the consummation of the Acquisition to finance a portion of the purchase price of such Acquisition (which
amount was $-0-) plus (bb) the amount of Availability attributable to the Accounts and Inventory of the Acquired Entities that are included in the Borrowing Base pursuant to the Credit Agreement and Section 2(d) of the First Consent, and
(4) after giving pro forma effect on the first day of the calculation period described below for such payment, the Acquisition, the Debt (including the Subordinated Debt) incurred to consummate the Acquisition and the Debt (including the
Subordinated Debt) incurred on the Closing Date (in each case, less any adjustments for prepayments of Debt made prior to the date of the proposed payment contemplated by this Section 2(d)(ii) of this Consent Letter, the Consolidated Fixed
Charge Coverage Ratio of the Borrowers and their Subsidiaries shall not be less than 1.1 to 1.0, calculated for the twelve (12) fiscal month period ended as of the last day of the most recent fiscal month for which Borrowers’ financial
statements are available to Lenders (but, in any event, not more than sixty (60) days prior to the proposed prepayment date). 

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 and Travel Holding Corporation 
 June 23, 2006 
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 e. Borrower, Administrative Agent and Lenders hereby agree that all covenants and
other provisions of the Credit Agreement and the other Credit Documents shall be deemed, to the extent applicable, to incorporate the consents to the Proposed Transactions contained in this Consent Letter. 
 3. Miscellaneous. Borrowers hereby: (i) ratify and reaffirm the Obligations, the Credit Agreement and each of the other Credit
Documents and all of Borrowers’ covenants, duties, indebtedness and liabilities under the Credit Documents; (ii) acknowledge and stipulate that (a) the Credit Agreement and the other Credit Documents executed by Borrowers are legal,
valid and binding obligations of Borrowers that are enforceable against Borrowers in accordance with the terms thereof and (b) all of the Obligations are owing and payable without defense, offset or counterclaim (and to the extent there exists
any such defense, offset or counterclaim on the date hereof, the same is hereby waived by Borrowers); (iii) represent and warrant to Administrative Agent and Lenders, to induce Administrative Agent and Lenders to enter into this Consent Letter,
that (a) no Event of Default exists on the date hereof, and (b) this Consent Letter has been duly executed and delivered by Borrowers; (iv) agree that this Consent Letter shall be governed by and construed in accordance with the
internal laws of the State of Georgia; (v) agree that this Consent Letter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; and (vi) agree that, except as otherwise
expressly provided in this Consent Letter, nothing herein shall be deemed to amend or modify any provision of the Credit Agreement or any of the other Credit Documents, each of which shall remain in full force and effect. 
 If this Consent Letter is acceptable to Borrowers, please evidence Borrowers’ agreement with the terms hereof by executing and returning a copy of
this letter to Administrative Agent. By their signatures below, Borrowers agree that Administrative Agent’s and Lenders’ consent as set forth herein will not be effective until all of the conditions to such consent have been fully
satisfied. This Consent Letter shall be effective only upon receipt by Administrative Agent of counterparts hereof from Borrowers, Required Lenders and New Parent. 
 [Signatures commence on following page] 

  

			
	
	Very truly yours,
	
	ADMINISTRATIVE AGENT:
	
	BANK OF AMERICA, N.A.
		
	By:	 	/s/ Dennis S. Losin
	Name:	 	Dennis S. Losin
	Title:	 	Senior Vice President

  

			
	LENDERS:
	
	BANK OF AMERICA, N.A.
		
	By:	 	/s/ Dennis S. Losin
	Name:	 	Dennis S. Losin
	Title:	 	Senior Vice President

  

			
	WELLS FARGO FOOTHILL, LLC
		
	By:	 	/s/ Karen Hilaire
	Name:	 	Karen Hilaire
	Title:	 	Assistant Vice President

  

			
	THE CIT GROUP/BUSINESS CREDIT, INC.
		
	By:	 	/s/ Carl Giordano
	Name:	 	Carl Giordano
	Title:	 	Assistant Vice President

  

			
	LASALLE BANK NATIONAL ASSOCIATION
		
	By:	 	/s/ Oscar D. Johnson, Jr.
	Name:	 	Oscar D. Johnson, Jr.
	Title:	 	Senior Vice President

  

 Second Consent Letter 

 PNA Group, Inc. and the other Borrowers 
 and Travel Holding Corporation 
 June 23, 2006 
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	WACHOVIA CAPITAL FINANCE CORPORATION (CENTRAL)
		
	By:	 	/s/ Laura Wheeland
	Name:	 	Laura Wheeland
	Title:	 	Vice President

  

			
	CITIZENS BANK OF MASSACHUSETTS
		
	By:	 	/s/ Susan K. Gadrix
	Name:	 	Susan K. Gadrix
	Title:	 	Vice President

  

			
	NATIONAL CITY BUSINESS CREDIT, INC.
		
	By:	 	/s/ Jason Hanes
	Name:	 	Jason Hanes
	Title:	 	Vice President

  

			
	PNC BANK, NATIONAL ASSOCIATION
		
	By:	 	/s/ Alex M. Council
	Name:	 	Alex M. Council
	Title:	 	Vice President

  

			
	TEXTRON FINANCIAL CORPORATION
		
	By:	 	/s/ Brian O’Fallon
	Name:	 	Brian O’Fallon
	Title:	 	Senior Account Executive

  

			
	E*TRADE BANK
		
	By:	 	/s/ Sam Crow
	Name:	 	Sam Crow
	Title:	 	Senior Manager

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	Acknowledged and Agreed to:
	
	BORROWERS:
	
	SMITH PIPE & STEEL COMPANY
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and Secretary

  

			
	INFRA METALS CO.
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and Secretary

  

			
	FERALLOY CORPORATION
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and Secretary

  

					
	DELTA STEEL L.P.
		
	By:	 	Delta GP, L.L.C., its general partner
			
		 	By:	 	/s/ Eva M. Kalawski
		 	Name:	 	Eva M. Kalawski
		 	Title:	 	Vice President and Secretary

  

					
	By:	 	Delta GP, L.L.C., its limited partner
			
		 	By:	 	/s/ Eva M. Kalawaski
		 	Name:	 	Eva M. Kalawski
		 	Title:	 	Vice President and Secretary

  

			
	DELTA GP, L.L.C.
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and Secretary

 PNA Group, Inc. and the other Borrowers 
 and Travel Holding Corporation 
 June 23, 2006 
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	DELTA LP, L.L.C.
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and Secretary

  

			
	PNA GROUP, INC.
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and Secretary

  

			
	DELNOR CORPORATION
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and Secretary

  

			
	TRAVEL MAIN CORPORATION
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and Secretary

  

			
	LOCKWOOD ACQUISITION, LLC
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and Secretary

  

					
	CLINTON & LOCKWOOD, LTD.
		
	By:	 	PNA Group, Inc., its general partner
			
		 	By:	 	/s/ Eva M. Kalawski
		 	Name:	 	Eva M. Kalawski
		 	Title:	 	Vice President and Secretary

 PNA Group, Inc. and the other Borrowers 
 and Travel Holding Corporation 
 June 23, 2006 
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	By:	 	Lockwood Acquisition, LLC, its limited partner
			
		 	By:	 	/s/ Eva M. Kalawski
		 	Name:	 	Eva M. Kalawski
		 	Title:	 	Vice President and Secretary

  

					
	METALS SUPPLY COMPANY, LTD.
		
	By:	 	MSC Management, Inc., its general partner
			
		 	By:	 	/s/ Eva M. Kalawski
		 	Name:	 	Eva M. Kalawski
		 	Title:	 	Vice President and Secretary

  

					
	By:	 	PNA Group, Inc., its limited partner
			
		 	By:	 	/s/ Eva M. Kalawski
		 	Name:	 	Eva M. Kalawski
		 	Title:	 	Vice President and Secretary

  

			
	MSC MANAGEMENT, INC.
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and Secretary

  

			
	NEW PARENT:
	
	TRAVEL HOLDING CORPORATION
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and SecretaryThird Amendment to Amended and Restated Credit and Security Agreement

 Exhibit 10.11 
 THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT 
 AND SECURITY AGREEMENT

 THIS THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT (this “Amendment”) is made and entered into this 13th
day of July, 2006, by and among PNA Group, Inc., a Delaware corporation and successor by merger to Travel Merger Corporation (“PNA”), Smith Pipe & Steel Company, an Arizona corporation (“Smith”), Infra-Metals Co., a
Georgia corporation (“Infra-Metals”), Feralloy Corporation, a Delaware corporation (“Feralloy”), Delta Steel L.P., a Texas limited partnership (“Delta Steel”), Delta GP, L.L.C., a Texas limited liability company
(“Delta GP”), Delta LP, L.L.C., a Delaware limited liability company (“Delta LP”), Delnor Corporation, a Texas corporation (“Delnor”), and Travel Main Corporation, a Delaware corporation (“Travel Main”),
Lockwood Acquisition, LLC, a Delaware limited liability company (“Lockwood Acquisition”), Clinton & Lockwood, Ltd., a Texas limited partnership (“C&L”), Metals Supply Company, Ltd., a Texas limited partnership
(“Metals Supply”), and MSC Management, Inc., a Texas corporation (“MSC”; and PNA, Smith, Infra-Metals, Feralloy, Delta Steel, Delta GP, Delta LP, Delnor, Travel Main, Lockwood Acquisition, C&L, Metals Supply and MSC, the
“Borrowers” and each individually a “Borrower”); the Lenders (as defined in the Credit Agreement (as defined below)) party hereto; Bank of America, N.A., a national banking association, as collateral and administrative agent for
the Lenders (together with its successors in such capacity, “Administrative Agent”). 
 Recitals: 
 Administrative Agent, Lenders and Borrowers are parties to a certain Amended and Restated Credit and Security Agreement dated as of May 9, 2006, as
amended by that certain First Consent and First Amendment to Amended and Restated Credit and Security Agreement dated as of May 31, 2006, as further amended and supplemented by that certain Joinder Agreement and Supplement to Amended and
Restated Credit and Security Agreement dated as of May 31, 2006, as further amended by that certain Second Consent and Second Amendment to Amended and Restated Credit and Security Agreement dated as of June 23, 2006 (the “Credit
Agreement”) pursuant to which Lenders have made certain loans and other financial accommodations to Borrowers. 
 Borrowers have
requested certain amendments to the Credit Agreement and Lenders have agreed to such amendments upon the terms and subject to the conditions set forth herein. 
 NOW, THEREFORE, for TEN DOLLARS ($10.00) in hand paid and other good and valuable consideration, the receipt and sufficiency of which are hereby severally acknowledged, the parties hereto, intending to be legally
bound hereby, agree as follows: 
 1. Definitions. All capitalized terms used in this Amendment, unless otherwise
defined herein, shall have the meaning ascribed to such terms in the Credit Agreement. 

 2. Amendments to Credit Agreement. The Credit Agreement is hereby amended as
follows: 
 (a) Section 1.1 of the Credit Agreement, Defined Terms, is hereby modified and amended to delete the
definition of “Consolidated Adjusted Net Earnings” in its entirety and to substitute the following therefor: 
 ““Consolidated Adjusted Net Earnings” - with respect to any fiscal period, means the net earnings (or loss) for such fiscal period of Borrowers and their Subsidiaries, all as reflected on the financial statement of Borrowers
supplied to Administrative Agent pursuant to Section 10.1.3 hereof, but excluding: (i) any gain or loss arising from the sale of fixed assets; (ii) any gain arising from any write-up (or loss arising from any write-down) of fixed
assets or general intangibles during such period; (iii) earnings of any Subsidiary accrued prior to the date it became a Subsidiary; (iv) earnings of any Person, substantially all the assets of which have been acquired in any manner by a
Borrower or its Subsidiary, realized by such Person prior to the date of such acquisition; (v) net earnings of a Joint Venture or any other entity in which a Borrower or a Subsidiary has an ownership interest except to the extent actually
distributed to Borrowers or their Subsidiaries; (vi) any portion of the net earnings of any Subsidiary which for any reason is unavailable for payment of Distributions to a Borrower or its Subsidiary; (vii) the earnings of any Person to
which any assets of a Borrower or its Subsidiary shall have been sold, transferred or disposed of, or into which a Borrower or its Subsidiary shall have merged, or been a party to any consolidation or other form of reorganization, prior to the date
of such transaction; (viii) management fees paid or payable to Platinum or its Affiliates, not to exceed $5,000,000 in the aggregate per Fiscal Year; (ix) any gain arising from the acquisition of any Securities of a Borrower or its
Subsidiary; (x) any non-cash gain or non-cash loss arising from extraordinary or non-recurring items net of any Taxes (without duplication); (xi) restructuring costs within twelve (12) months after the Closing Date, not to exceed
$5,000,000 in the aggregate plus management bonuses paid on the Closing Date in the amount of $3,926,000 in the aggregate plus transaction costs incurred in connection with the Merger Agreement and this Agreement; and (xii) any non-cash items
of income or expense resulting from the application of purchase price accounting by reason of the consummation of the Merger Agreement, including amortization of any such items over several periods, all as determined in accordance with GAAP.”

 (b) Section 1.1 of the Credit Agreement, Defined Terms, is hereby modified and amended to delete the definition
of “Consolidated Fixed Charge Coverage Ratio” in its entirety and to substitute the following therefor: 
 ““Consolidated Fixed Charge Coverage Ratio” - for any period of Borrowers and their Subsidiaries, on a Consolidated basis, the ratio of (i) Consolidated EBITDA for such period minus Unfinanced Capital Expenditures for
such period minus cash income taxes paid minus Distributions (other than (A) the return of capital contemplated by Section 2(d)(ii) of the Second Consent Letter, (B) the $2,500,000 

 
Initial Management Fee paid on or about the Closing Date and (C) Distributions used to fund payments due to Seller in respect of tax liabilities of
Borrowers for the period from December 1, 2005 through May 9, 2006) to (ii) (without duplication) Consolidated Fixed Charges for such period.” 
 (c) Section 1.1 of the Credit Agreement, Defined Terms, is hereby modified and amended to delete the reference to
“$200,000,000” in the definition of “Maximum Inventory Loan Amount” and to substitute “$230,000,000” therefor. 
 (d) Section 1.1 of the Credit Agreement, Defined Terms, is hereby modified and amended to delete the definition of “Pro Rata” in its entirety and to substitute the following therefor:

 “Pro Rata” means: 
 (a) with respect to a Lender’s obligation to make Revolver Loans and to receive payments of principal, interest, fees (including fees under Section 3.2.2), costs and expenses with respect thereto, to
participate in Letters of Credit, to reimburse the Issuing Bank and to receive payments of fees with respect thereto (including fees under Section 3.2.3), (i) prior to the Revolver Commitment being terminated or reduced to zero, the
percentage (expressed as a decimal rounded to the ninth decimal place) obtained by dividing such Lender’s Revolver Commitment by the aggregate Revolver Commitments of all Lenders, and (ii) from and after the date the Revolver Commitments
have been terminated or reduced to zero, the percentage (expressed as a decimal rounded to the ninth decimal place) obtained by dividing the aggregate unpaid principal amount of such Lender’s Revolver Loans and participations in outstanding
Letters of Credit by the aggregate unpaid principal amount of the Revolver Loans of all Lenders and the aggregate outstanding amount of all Letters of Credit, 
 (b) with respect to a Lender’s obligation to make Term Loans and receive payments of principal, interest, fees, costs and expenses
with respect thereto, (i) prior to the Term Loan Commitments being terminated or reduced to zero, the percentage (expressed as a decimal rounded to the ninth decimal place) obtained by dividing such Lender’s Term Loan Commitments by the
aggregate Term Loan Commitments of all Lenders, and (ii) from and after the date the Term Loan Commitments have been terminated or reduced to zero, the percentage (expressed as a decimal rounded to the ninth decimal place) obtained by dividing
the aggregate unpaid principal amount of such Lender’s Term Loans by the aggregate unpaid principal amount of the Term Loans of all Lenders, and 
 (c) with respect to all other matters as to a particular Lender (including the indemnification obligations under Section 13.6), (i) prior to the Revolver Commitments being terminated or reduced to zero, the
percentage (expressed as a decimal rounded to the ninth decimal place) obtained by dividing such Lender’s Revolver Commitment plus the principal amount such Lender’s Term Loans by the aggregate Revolver Commitments and the principal amount
of the Term 

 
Loans of all Lenders, and (ii) from and after the date the Revolver Commitments have been terminated or reduced to zero, the percentage (expressed as a
decimal rounded to the ninth decimal place) obtained by dividing the aggregate unpaid principal amount of such Lender’s Revolver Loans and Term Loans and the aggregate amount of such Lender’s participations in outstanding Letters of Credit
by the aggregate unpaid principal amount of the Revolver Loans and Term Loans of all Lenders plus the aggregate outstanding amount of all Letters of Credit.” 
 (e) Section 10.2.3 of the Credit Agreement, Permitted Debt, is hereby modified and amended by deleting the word
“and” at the end of clause (vi) thereof and by adding the following text at the end of clause (vii) thereof immediately preceding the “.” therein: 
 “; and (viii) Subordinated Loans incurred pursuant to Section 10.3.1” 
 (f) Section 13.9.3 of the Credit Agreement is hereby modified and amended to add the word “Revolver” immediately prior to
the reference to “Commitments” in line four of such Section. 
 (g) In connection with the $50,000,000 increase in
the Revolver Commitments under Section 2.1.8 of the Credit Agreement, Schedule 1 of the Credit Agreement is hereby deleted and Schedule 1 attached to this Amendment is hereby substituted therefor. 
 3. Ratification and Reaffirmation. Each Borrower hereby ratifies and reaffirms the Obligations, each of the Credit Documents and all
of such Borrower’s covenants, duties, indebtedness and liabilities under the Credit Documents. 
 4. Acknowledgments and
Stipulations. Each Borrower acknowledges and stipulates that the Credit Agreement and the other Credit Documents executed by such Borrower are legal, valid and binding obligations of such Borrower that are enforceable against such Borrower
in accordance with the terms thereof; all of the Obligations are owing and payable without defense, offset or counterclaim (and to the extent there exists any such defense, offset or counterclaim on the date hereof, the same is hereby waived by such
Borrower); the security interests and liens granted by each Borrower in favor of Lender are duly perfected, first priority security interests and liens subject only to Permitted Liens; and the unpaid principal amount of the Loans and the issued and
outstanding Letters of Credit on and as of the close of business on July 10, 2006, totaled $321,373,424.14. 
 5.
Representations and Warranties. Each Borrower represents and warrants to Administrative Agent and Lenders, to induce Administrative Agent and Lenders to enter into this Amendment, that no Default or Event of Default exists on the date
hereof; the execution, delivery and performance of this Amendment have been duly authorized by all requisite corporate action on the part of each Borrower and this Amendment has been duly executed and delivered by each Borrower; and all of the
representations and warranties made by each Borrower in the Credit Agreement are true and correct on and as of the date hereof. 
 6.
Reference to Credit Agreement. Upon the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement,” “hereunder,” or words of like import shall mean and be a reference to the Credit
Agreement, as amended by this Amendment. 

 7. Breach of Amendment. This Amendment shall be part of the Credit Agreement and a
breach of any representation, warranty or covenant herein shall constitute an Event of Default. 
 8. Conditions
Precedent. The effectiveness of the amendments contained in Section 2 hereof are subject to the satisfaction of each of the following conditions precedent, in form and substance satisfactory to Administrative Agent, unless satisfaction
thereof is specifically waived in writing by Administrative Agent: 
 (a) Administrative Agent’s receipt of one or more
duly executed counterparts of this Agreement from Borrowers and Lenders; 
 (b) Administrative Agent’s receipt of a one
or more duly executed counterparts of a joinder agreement from Merrill Lynch Capital, a division of Merrill Lynch Business Financial Services Inc. (“Merrill Lynch”) and Borrowers; 
 (c) Administrative Agent’s receipt, for the benefit of each Lender increasing its Revolver Commitment or, in the case of Merrill
Lynch, issuing its initial Revolver Commitment, a commitment fee in the amount of 0.15% of the amount of such increase in or, in the case of Merrill Lynch, initial Revolver Commitment; 
 (d) Administrative Agent’s receipt of a duly executed replacement Revolver Note or initial Revolver Note, as applicable, from
Borrowers payable to each Lender increasing its Revolver Commitment or, in the case of Merrill Lynch, issuing its initial Revolver Commitment; and 
 (e) Administrative Agent’s receipt of such other documents, certificates, resolutions and reports as Administrative Agent may reasonably request. 
 9. Expenses of Lender. Each Borrower, jointly and severally, agrees to pay, on demand, all costs and expenses incurred by
Administrative Agent in connection with the preparation, negotiation and execution of this Amendment and any other Credit Documents executed pursuant hereto and any and all amendments, modifications, and supplements thereto, including, without
limitation, the costs and fees of Administrative Agent’s legal counsel and any taxes or expenses associated with or incurred in connection with any instrument or agreement referred to herein or contemplated hereby. 
 10. Governing Law. This Amendment shall be governed by and construed in accordance with the internal laws of the State of Georgia.

 11. Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns. 
 12. No Novation, etc. . Except as otherwise expressly provided
in this Amendment, nothing herein shall be deemed to amend or modify any provision of the Credit Agreement or any of the other Credit Documents, each of which shall remain in full force and effect. This Amendment is not intended to be, nor shall it
be construed to create, a novation or accord and satisfaction, and the Credit Agreement as herein modified shall continue in full force and effect. 

 13. Counterparts; Telecopied Signatures. This Amendment may be executed in any
number of counterparts and by different parties to this Amendment on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute one and the same agreement. Any signature delivered
by a party by facsimile or electronic mail transmission shall be deemed to be an original signature hereto. 
 14. Further
Assurances. Each Borrower agrees to take such further actions as Lender shall reasonably request from time to time in connection herewith to evidence or give effect to the amendments set forth herein or any of the transactions contemplated
hereby. 
 15. Section Titles. Section titles and references used in this Amendment shall be without substantive meaning
or content of any kind whatsoever and are not a part of the agreements among the parties hereto. 
 16. Release of Claims. To
induce Administrative Agent and Lenders to enter into this Amendment, each Guarantor and each Borrower hereby releases, acquits and forever discharges Administrative Agent and Lenders, and all officers, directors, agents, employees, successors and
assigns of Administrative Agent and Lenders, from any and all liabilities, claims, demands, actions or causes of action of any kind or nature (if there be any), whether absolute or contingent, disputed or undisputed, at law or in equity, or known or
unknown, that Guarantor or such Borrower now has or ever had against Administrative Agent or any Lender arising under or in connection with any of the Credit Documents or otherwise. Each of Guarantor and each Borrower represents and warrants to
Administrative Agent and Lenders that Guarantor or such Borrower, as applicable, has not transferred or assigned to any Person any claim that Guarantor or such Borrower, as applicable, ever had or claimed to have against Administrative Agent or any
Lender. 
 17. Waiver of Jury Trial. To the fullest extent permitted by applicable law, the parties hereto each hereby waives
the right to trial by jury in any action, suit, counterclaim or proceeding arising out of or related to this Amendment. 
 [Signatures
commence on following page.] 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed under seal and
delivered by their respective duly authorized officers on the date first written above. 
  

									
	ADMINISTRATIVE AGENT:	 		 	BANK OF AMERICA, N.A.
					
		 		 		 	By:	 	/s/ Dennis S. Losin
		 		 		 	Name:	 	Dennis S. Losin
		 		 		 	Title:	 	Senior Vice President

  

									
	LENDERS:	 		 	BANK OF AMERICA, N.A.
					
		 		 		 	By:	 	/s/ Dennis S. Losin
		 		 		 	Name:	 	Dennis S. Losin
		 		 		 	Title:	 	Senior Vice President

  

									
		 		 	WELLS FARGO FOOTHILL, LLC
					
		 		 		 	By:	 	/s/ Karen Hilaire
		 		 		 	Name:	 	Karen Hilaire
		 		 		 	Title:	 	Assistant Vice President

  

									
		 		 	THE CIT GROUP/BUSINESS CREDIT, INC.
					
		 		 		 	By:	 	/s/ Carl Giordano
		 		 		 	Name:	 	Carl Giordano
		 		 		 	Title:	 	Vice President

  

									
		 		 	LASALLE BANK NATIONAL ASSOCIATION
					
		 		 		 	By:	 	/s/ Oscar D. Johnson, Jr.
		 		 		 	Name:	 	Oscar D. Johnson, Jr.
		 		 		 	Title:	 	Senior Vice President

			
	WACHOVIA CAPITAL FINANCE CORPORATION (CENTRAL)
		
	By:	 	/s/ Laura Wheeland
	Name:	 	Laura Wheeland
	Title:	 	Vice-President 

  

			
	CITIZENS BANK OF MASSACHUSETTS
		
	By:	 	/s/ Susan K. Gadrix
	Name:	 	Susan K. Gadrix
	Title:	 	Vice President

  

			
	NATIONAL CITY BUSINESS CREDIT, INC.
		
	By:	 	/s/ Jason Hanes
	Name:	 	Jason Hanes
	Title:	 	Vice President

  

			
	PNC BANK, NATIONAL ASSOCIATION
		
	By:	 	/s/ Alex M. Council
	Name:	 	Alex M. Council
	Title:	 	Vice President

  

			
	TEXTRON FINANCIAL CORPORATION
		
	By:	 	/s/ Brian O’Fallon
	Name:	 	Brian O’Fallon
	Title:	 	Senior Account Executive

  

			
	E*TRADE BANK
		
	By:	 	/s/ Sam Crow
	Name:	 	Sam Crow
	Title:	 	Senior Manager

									
		 		 	MERRILL LYNCH CAPITAL, A DIVISION OF MERRILL LYNCH BUSINESS FINANCIAL SERVICES INC.
					
		 		 		 	By:	 	/s/ Richard Holston
		 		 		 	Name:	 	Richard Holston
		 		 		 	Title:	 	Vice President
			
	BORROWERS:	 		 	SMITH PIPE & STEEL COMPANY
					
		 		 		 	By:	 	/s/ Eva M. Kalawski
		 		 		 	Name:	 	Eva M. Kalawski
		 		 		 	Title:	 	Vice President and Secretary
			
		 		 	INFRA-METALS CO.
					
		 		 		 	By:	 	/s/ Eva M. Kalawski
		 		 		 	Name:	 	Eva M. Kalawski
		 		 		 	Title:	 	Vice President and Secretary
			
		 		 	FERALLOY CORPORATION
					
		 		 		 	By:	 	/s/ Eva M. Kalawski
		 		 		 	Name:	 	Eva M. Kalawski
		 		 		 	Title:	 	Vice President and Secretary

													
				
		 		 		 	DELTA STEEL L.P.
						
		 		 		 		 	By:	 	Delta GP, L.L.C., its general partner
							
		 		 		 		 		 	By:	 	/s/ Eva M. Kalawski
		 		 		 		 		 	Name:	 	Eva M. Kalawski
		 		 		 		 		 	Title:	 	Vice President and Secretary
						
		 		 		 		 	By:	 	Delta LP, L.L.C., its limited partner
							
		 		 		 		 		 	By:	 	/s/ Eva M. Kalawski
		 		 		 		 		 	Name:	 	Eva M. Kalawski
		 		 		 		 		 	Title:	 	Vice President and Secretary

			
	DELTA GP, L.L.C.
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and Secretary
	
	DELTA LP, L.L.C.
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and Secretary
	
	PNA GROUP, INC.
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and Secretary
	
	DELNOR CORPORATION
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and Secretary
	
	TRAVEL MAIN CORPORATION
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and Secretary
	
	LOCKWOOD ACQUISITION, LLC
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and Secretary

					
	CLINTON & LOCKWOOD, LTD.
		
	By:	 	PNA Group, Inc., its general partner
			
		 	By:	 	/s/ Eva M. Kalawski
		 	Name:	 	Eva M. Kalawski
		 	Title:	 	Vice President and Secretary

  

					
		
	By:	 	Lockwood Acquisition, LLC, its limited partner
			
		 	By:	 	/s/ Eva M. Kalawski
		 	Name:	 	Eva M. Kalawski
		 	Title:	 	Vice President and Secretary

  

					
	
	METALS SUPPLY COMPANY, LTD.
		
	By:	 	MSC Management, Inc., its general partner
			
		 	By:	 	/s/ Eva M. Kalawski
		 	Name:	 	Eva M. Kalawski
		 	Title:	 	Vice President and Secretary

  

					
		
	By:	 	PNA Group, Inc., its limited partner
			
		 	By:	 	/s/ Eva M. Kalawski
		 	Name:	 	Eva M. Kalawski
		 	Title:	 	Vice President and Secretary

  

			
	MSC MANAGEMENT, INC.
		
	By:	 	/s/ Eva M. Kalawski
	Name:	 	Eva M. Kalawski
	Title:	 	Vice President and Secretary

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