EXHIBIT 10.1
WAIVER UNDER FIVE-YEAR CREDIT AGREEMENT
This WAIVER UNDER FIVE YEAR CREDIT AGREEMENT (this "Waiver") made and
entered into as of July 24, 2003, by and among INTERMET CORPORATION, a Georgia
corporation ("Intermet"), THE BANK OF NOVA SCOTIA, a Canadian chartered bank
("Scotia Capital"), acting through its Atlanta Agency, the other banks and
lending institutions listed on the signature pages hereof, and any assignees of
Scotia Capital or such other banks and lending institutions which become
"Lenders" as provided in the Credit Agreement (as defined below) (Scotia
Capital, and such other banks, lending institutions, and assignees referred to
collectively herein as the "Lenders"), and Scotia Capital, in its capacity as
administrative and collateral agent for the Lenders and each successor
administrative or collateral agent for such Lenders as may be appointed from
time to time pursuant to Article IX of the Credit Agreement defined below (the
"Administrative Agent").
W I T N E S S E T H:
WHEREAS, Intermet, the Lenders and the Administrative Agent are parties to
that certain $300,000,000 Five-Year Credit Agreement, dated as of November 5,
1999, as amended through March 19, 2003 (as so amended, the "Credit Agreement,";
terms used herein but not otherwise defined herein shall have the same
respective meanings as in the Credit Agreement);
WHEREAS, Intermet has informed the Administrative Agent and the Lenders
that Frisby P.M.C., Incorporated, a Subsidiary of Intermet ("Frisby"), intends
to sell substantially all of its assets to JJL Group, L.L.C., an Illinois
limited liability company (the "Buyer"), for consideration of not less than
$5,000,000, consisting of a promissory note from the Buyer of not more than
$1,600,000 (the "Frisby Note") and the remainder in cash paid at closing (the
"Frisby Sale").
WHEREAS, Intermet has requested that the Administrative Agent and the
Lenders waive certain provisions of the Credit Agreement so that Frisby may
consummate the Frisby Sale;
NOW, THEREFORE, in consideration of the premises and the mutual covenants
herein contained, Intermet, the Required Lenders and the Administrative Agent
agree, upon the terms and subject to the conditions set forth herein, as
follows:
SECTION 1. WAIVER. In connection with the Frisby Sale, the Administrative
Agent and the Required Lenders hereby agree to a one-time waiver of (a) the
provisions of Sections 3.06(b)(ii) and 3.07(a) of the Credit Agreement with
respect to the Net Disposition Proceeds of the Frisby Sale and (b) the
requirement in Section 7.04(c) of the Credit Agreement that the Frisby Sale be
for cash.
SECTION 2. EFFECTIVENESS. The wavier set forth above shall become effective
on the date (the "Effective Date"), when the Administrative Agent shall have
received the following, all in form and substance satisfactory to the
Administrative Agent:
(a) This Waiver. Counterparts hereof executed by Intermet, the
Administrative Agent, the Required Lenders and the Guarantors;
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(b) Resolutions and Pro-Forma Compliance. The documents required by Section
7.04(c) of the Credit Agreement.
(c) Consummation of the Frisby Sale. Evidence that the Frisby Sale has been
consummated (but for the effectiveness of this Wavier), such evidence to be in
form and substance acceptable to the Administrative Agent;
(d) The Frisby Note. The Frisby Note (together with an indorsement executed
in blank); and
(e) Other Instruments or Documents. Such other instruments or documents as
the Administrative Agent or any Lender may reasonably request in connection with
this Waiver.
SECTION 3. REPRESENTATIONS AND WARRANTIES. Intermet represents and warrants
to the Administrative Agent and the Lenders that:
(a) Credit Document Representations and Warranties. The representations and
warranties contained in the Credit Documents are true and correct in all
material respects as of the date hereof with the same effect as though made on
the date hereof;
(b) No Default. After giving effect to this Waiver and the Frisby Sale, no
Default or Event of Default shall have occurred or be continuing;
(c) Due Authorization; Enforceability. This Waiver has been duly authorized
by all necessary corporate proceedings and duly executed and delivered by
Intermet and the Guarantors, and the Credit Agreement and each of the other
Credit Documents are the legal, valid and binding obligations of the Credit
Parties party thereto, enforceable against such Credit Parties in accordance
with their respective terms, except as enforceability may be limited by
bankruptcy, insolvency or other similar laws of general application affecting
the enforcement of creditors' rights or by general principles of equity;
(d) Governmental Approvals. No consent, approval, authorization, order,
registration or qualification with any governmental authority, regulatory body
or securities exchange is required for, and in the absence of which would
adversely affect, the legal and valid execution and delivery or performance by
Intermet and the Guarantors of this Waiver or the continued performance by
Intermet and the Guarantors of the Credit Agreement or by any Credit Party of
any other Credit Document to which it is a party;
(e) Fair Market Value. Frisby will receive consideration equal to Fair
Market Value for the assets subject to the Frisby Sale; and
(f) No Previous Asset Sales. Neither Intermet nor any other Consolidated
Company has made any Asset Sales since the Fourth Amendment Date.
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SECTION 4. MISCELLANEOUS.
SECTION 4.1. This Waiver may be executed in any number of counterparts and
by the different parties on separate counterparts and each such counterpart
shall be deemed to be an original, but all such counterparts shall together
constitute one and the same Waiver.
SECTION 4.2. Except as specifically provided above, the Credit Agreement
and the other Credit Documents shall remain in full force and effect and are
hereby ratified and confirmed in all respects. The execution, delivery and
effectiveness of this Waiver shall not, except as expressly provided herein,
operate as a waiver of any right, power or remedy of the Administrative Agent or
the Lenders under the Credit Agreement or any of the other Credit Documents, nor
constitute a waiver or modification of any provision of any of the other Credit
Documents.
SECTION 4.3. Intermet agrees to pay on demand all reasonable costs and
expenses incurred at any time by the Administrative Agent (including the
reasonable attorney fees and expenses for the Administrative Agent) in
connection with the preparation, negotiation, execution and administration of
this Waiver and all other instruments or documents provided for herein or
delivered or to be delivered hereunder or in connection herewith.
SECTION 4.4. This Waiver shall be binding upon and shall insure to the
benefit of the parties hereto and their respective successors and permitted
assigns as provided in the Credit Agreement.
SECTION 4.5. In case any provision in or obligation under this Waiver or
the other Credit Documents shall be invalid, illegal or unenforceable, in whole
or in part, in any jurisdiction, the validity, legality and enforceability of
the remaining provisions or obligations, or of such provision or obligation in
any other jurisdiction, shall not in any way be affected or impaired thereby.
SECTION 4.6. THIS WAIVER WILL BE DEEMED TO BE A CONTRACT MADE UNDER AND
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH
PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE
OF NEW YORK).
[Signatures Follow on Next Page]
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IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be duly
executed and to be delivered in New York, New York, by their duly authorized
officers as of the day and year first above written.
INTERMET CORPORATION,
By:
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Name:
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Title:
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THE BANK OF NOVA SCOTIA,
INDIVIDUALLY AND AS ADMINISTRATIVE AGENT
By:
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Name:
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Title:
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BANK ONE, NA
(SUCCESSOR BY MERGER TO BANK ONE, MICHIGAN),
INDIVIDUALLY AND AS SYNDICATION AGENT
By:
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Name:
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Title:
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SUNTRUST BANK, INDIVIDUALLY AND
AS DOCUMENTATION AGENT
By:
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Name:
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Title:
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COMERICA BANK,
INDIVIDUALLY AND AS MANAGING AGENT
By:
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Name:
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Title:
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THE BANK OF NEW YORK,
INDIVIDUALLY AND AS CO-AGENT
By:
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Name:
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Title:
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HARRIS TRUST AND SAVINGS BANK,
INDIVIDUALLY AND AS CO-AGENT
By:
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Name:
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Title:
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BANK OF AMERICA, N.A.
By:
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Name:
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Title:
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THE BANK OF TOKYO - MITSUBISHI,
LTD., CHICAGO BRANCH
By:
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Name:
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Title:
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S-2
DEUTSCHE BANK TRUST COMPANY AMERICAS
(FORMERLY KNOWN AS BANKERS TRUST COMPANY)
By:
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Name:
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Title:
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FLEET NATIONAL BANK
By:
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Name:
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Title:
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MIZUHO CORPORATE BANK, LTD.
By:
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Name:
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Title:
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KEYBANK NATIONAL ASSOCIATION
By:
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Name:
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Title:
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DZ BANK AG DEUTSCHE
ZENTRAL-GENOSSENSCHAFTSBANK,
FRANKFURT AM MAIN,
(FORMERLY KNOWN AS DZ BANK DEUTSCHE
GENOSSENSCHAFTSBANK AG)
By:
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Name:
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Title:
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STANDARD FEDERAL BANK N.A.
By:
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Name:
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Title:
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NATIONAL CITY BANK
By:
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Name:
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Title:
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LANDESBANK SAAR GIROZENTRALE
By:
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Name:
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Title:
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By:
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Name:
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Title:
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Each of the undersigned hereby consents to this Waiver, ratifies the
Guaranty Agreement and agrees that the Guaranty Agreement remains in full force
and effect:
ALEXANDER CITY CASTING COMPANY, INC.
By:
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Name:
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Title:
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CAST-MATIC CORPORATION
By:
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Name:
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Title:
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COLUMBUS FOUNDRY, L.P.
By:
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Name:
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Title:
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DIVERSIFIED DIEMAKERS, INC.
By:
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Name:
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Title:
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FRISBY P.M.C., INCORPORATED
By:
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Name:
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Title:
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S-5
GANTON TECHNOLOGIES INC.
By:
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Name:
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Title:
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INTERMET HOLDING COMPANY
By:
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Name:
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Title:
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INTERMET INTERNATIONAL, INC.
By:
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Name:
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Title:
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IRONTON IRON INC.
By:
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Name:
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Title:
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LYNCHBURG FOUNDRY COMPANY
By:
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Name:
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Title:
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S-6
NORTHERN CASTINGS CORPORATION
By:
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Name:
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Title:
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SUDBURY, INC.
By:
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Name:
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Title:
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SUDM, INC.
By:
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Name:
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Title:
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TOOL PRODUCTS, INC.
By:
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Name:
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Title:
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WAGNER CASTINGS COMPANY
By:
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Name:
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Title:
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WAGNER HAVANA, INC.
By:
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Name:
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Title:
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S-7
INTERMET U.S. HOLDING, INC.
By:
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Name:
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Title:
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