Exhibit 10-8
AGREEMENT
This Agreement dated as of July 9, 2003 (the "Agreement"), among
Lexington Precision Corporation, a Delaware corporation (the "LPC"), Lexington
Rubber Group, Inc., a Delaware corporation formerly known as Lexington
Components, Inc. ("LRG"; LPC and LRG are referred to individually as "Borrower"
and collectively as the "Borrowers"), and Congress Financial Corporation
("Congress").
WHEREAS, Congress and each of the Borrowers have entered into an
Accounts Financing Agreement [Security Agreement] dated as of January 11, 1990,
as amended, and all supplements thereto and related financing and security
agreements (all of the foregoing, as the same have been or may be amended,
replaced, extended, modified, or supplemented, are referred to as the "Financing
Agreements").
NOW, THEREFORE, in consideration of the mutual covenants contained
herein and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto, intending to be legally
bound, hereby agree as follows:
1. Waiver. Subject to paragraph 2 hereof, Congress hereby waives,
until August 11, 2003, any Event of Default resulting solely from the failure of
the LPC to pay any principal or interest due on (a) LPC's 12 3/4% Senior
Subordinated Notes due February 1, 2000, and/or (b) the 10-1/2% Senior Note due
May 1, 2002, of LPC and LRG (the indebtedness referred to in clauses (a) and (b)
is referred to herein as the "Other Indebtedness").
2. Rescission of Waivers. The foregoing waivers shall be
automatically rescinded, without notice to LPC or LRG, in the event that the
holder of any Other Indebtedness or trustee in respect thereof seeks to
accelerate the maturity of any such Other Indebtedness or to enforce or exercise
any remedies in respect thereto.
3. Effective Date.
This Agreement shall be deemed effective as of July 9, 2003.
4. Representations and Warranties. Each of the parties represents
and warrants that: (a) the execution, delivery, and performance of this
Agreement have been duly authorized by all requisite action on its part; and (b)
this Agreement has been duly executed and delivered by it and constitutes its
legal, valid, and binding agreement, enforceable against it in accordance with
its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting
the enforceability of creditors' rights generally or by general equitable
principles.
5. No Other Amendments.
Except as set forth herein, all terms and provisions of the
Financing Agreements among Congress, LPC and LRG shall remain in full force and
effect. Except as expressly set forth herein, no other or further amendment,
waiver or consent is implied by, and LPC and LRG shall not be entitled to, any
other or further amendment, waiver or consent by virtue of the provisions of
this Agreement. In addition, without limiting the foregoing, the waivers of
Congress set forth herein do not constitute an agreement to, and LPC and LRG
acknowledge that Congress may decline to, grant any other or further
waivers with respect to the subject matter hereof or any other matters
regardless of whether or not there occurs any change in facts or circumstances
relating to LPC and/or LRG.
6. General Provisions.
(a) Defined Terms. Capitalized terms used herein, unless
otherwise defined herein, shall have the meaning ascribed thereto in the
Financing Agreements.
(b) Counterparts. This Agreement may be executed by the
parties in any number of counterparts and all of said counterparts taken
together shall be deemed to constitute one and the same instrument. This
Agreement may be signed by facsimile transmission of the relevant signature
pages hereof.
(c) Governing Law. This Agreement shall be governed by, and
construed and interpreted in accordance with, the internal laws of the State of
New York.
(d) Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the successors and assigns of the parties
hereto.
(e) Headings. The paragraph headings of this Agreement are
for convenience of reference only and are not to be considered in construing
this Agreement.
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IN WITNESS WHEREOF, each Borrower and Congress have caused this
Agreement to be duly executed and delivered as of the date first written above.
LEXINGTON PRECISION CORPORATION
By: /s/ Warren Delano
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Name: Warren Delano
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Title: President
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LEXINGTON RUBBER GROUP, INC.
By: /s/ Warren Delano
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Name: Warren Delano
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Title: President
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CONGRESS FINANCIAL CORPORATION
By: /s/ Herbert C. Korn
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Name: Herbert C. Korn
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Title: Vice President
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