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BankAmerica Exhibit 4(a)
Business Credit, Inc.
September 12, 1994
Mr. Mark Brody
Sudbury, Inc.
30100 Chagrin Blvd.
Suite 203
Cleveland, Ohio 44124
Re: Amendment No. 5 to Loan and Security Agreement
Dear Mr. Brody:
Reference is hereby made to that certain Loan and Security
Agreement (the "Agreement") dated as of May 28, 1993, as amended
from time to time, and executed by and among Sudbury, Inc. (the
"Parent"), Cast-Matic Corporation, Frisby Mfg. Co., Industrial
Powder Coatings, Inc. ("IPC"), Iowa Mold Tooling Co., Inc., South
Coast Terminals, Inc., and Wagner Castings Company (collectively,
the "Borrower") and BankAmerica Business Credit, Inc., formerly
known as BA Business Credit, Inc. (the "Agent" and a "Lender"),
National City Bank, and Star Bank, National Association
(collectively, the "Lenders"). Certain capitalized terms used
herein shall have the same meanings attributed to them in the
Agreement.
The Agent, the Lenders, and the Borrower desire to modify the
arrangement previously made with respect to Havana Advances and the
Agreement is amended as follows:
1. Section 2.2(g) of the Agreement is hereby deleted in its
entirety and replaced to read as follows:
"(g) Upon receipt of a Revolving Loan, Wagner
will immediately fund the amount of such
Revolving Loan to Havana ("Havana Advance")
which exceeds Wagner's Individual Borrower
Revolving Loan Availability calculated without
giving effect to (i) Wagner's loans
outstanding to Havana and (ii) Havana
Availability. Wagner shall denote in
accordance with the Notice of Borrowing what
portion of its advance request is a Havana
Advance. Any advance requested by Wagner for
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Mr. Mark Brody
Amendment No. 5 to Loan and Security Agreement
September 12, 1994
Page 2
use in the business and operations of Wagner
shall not be attributable to Havana
Availability. Havana shall execute a master
revolving credit note ("Revolving Note") in
favor of Wagner and each advance by Wagner to
Havana and each expense item paid by Wagner
for and on behalf of Havana ("Havana
Intercompany Advance") and each principal
repayment from Havana to Wagner shall be duly
recorded on the grid attached to the Revolving
Note. An "expense item" herein means any
third party expense not related in any way to
the operations of the business of Wagner with
such expense items to be set forth in detail,
acceptable to the Agent, and delivered to the
Agent on the first day of each month
hereafter. A copy of the grid shall be
furnished by Wagner to the Agent on the first
day of each month hereafter. The Revolving
Note shall be payable on demand and be in form
and substance acceptable to the Agent and the
Lenders. None of the Lenders shall be deemed
to have made Revolving Loans directly to
Havana."
2. In connection therewith, Havana shall execute a replacement
note ("Replacement Revolving Note") in form and substance
acceptable to the Agent and the Lenders which shall be
substituted for and supersede the Revolving Note, a copy of
which is attached hereto as Exhibit A.
Except as modified herein, the Agreement remains in full force and
effect and is hereby ratified and affirmed. Please indicate your
acceptance of this Amendment No. 5 to the Agreement by executing in
the places provided below and this Amendment No. 5 shall be deemed
effective as of the date first written above.
Respectfully yours,
BANKAMERICA BUSINESS CREDIT, INC.,
as Agent and Lender
By: /s/ Gregory R. Eck
-----------------------------
Its: Vice President
----------------------------
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Mr. Mark Brody
Amendment No. 5 to Loan and Security Agreement
September 12, 1994
Page 3
NATIONAL CITY BANK,
as Lender
By: /s/ Diane I. Rooney
---------------------------
Its: Vice President
--------------------------
STAR BANK, NATIONAL ASSOCIATION,
as Lender
By: /s/ Suzanne E. Geiger
----------------------------
Its: Vice President
---------------------------
ACCEPTED AND AGREED:
SUDBURY, INC.
By: /s/ Mark E. Brody
-----------------------------
Its: Vice President
----------------------------
By: /s/ Jacques R. Sardas
-----------------------------
Its: Chairman / CEO
----------------------------
CAST-MATIC CORPORATION
By: /s/ Mark E. Brody
-----------------------------
Its: Vice President
----------------------------
By: /s/ Jacques R. Sardas
----------------------------
Its: Chairman / CEO
----------------------------
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Mr. Mark Brody
Amendment No. 5 to Loan and Security Agreement
September 12, 1994
Page 4
FRISBY P.M.C. INCORPORATED
By: /s/ Mark E. Brody
----------------------------
Its: Vice President
---------------------------
By: /s/ Jacques R. Sardas
----------------------------
Its: Chairman / CEO
---------------------------
INDUSTRIAL POWDER COATINGS, INC.
By: /s/ Mark E. Brody
----------------------------
Its: Vice President
---------------------------
By: /s/ Jacques R. Sardas
----------------------------
Its: Chairman / CEO
---------------------------
IOWA MOLD TOOLING CO., INC.
By: /s/ Mark E. Brody
----------------------------
Its: Vice President
---------------------------
By: /s/ Jacques R. Sardas
----------------------------
Its: Chairman / CEO
---------------------------
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Mr. Mark Brody
Amendment No. 5 to Loan and Security Agreement
September 12, 1994
Page 5
SOUTH COAST TERMINALS, INC.
By: /s/ Mark E. Brody
------------------------------
Its: Vice President
----------------------------
By: /s/ Jacques R. Sardas
------------------------------
Its: Chairman / CEO
-----------------------------
WAGNER CASTINGS COMPANY
By: /s/ Mark E. Brody
------------------------------
Its: Vice President
-----------------------------
By: /s/ Jacques R. Sardas
------------------------------
Its: Chairman / CEO
-----------------------------
ACKNOWLEDGED AND CONSENTED TO:
WAGNER HAVANA, INC.
By: /s/ Mark E. Brody
------------------------------
Its: Vice President
-----------------------------
By: /s/ Jacques R. Sardas
------------------------------
Its: Chairman / CEO
-----------------------------
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EXHIBIT "A"
-----------
REPLACEMENT WAGNER HAVANA, INC. REVOLVING CREDIT NOTE
-----------------------------------------------------
$7,500,000 September , 1994
------
FOR VALUE RECEIVED, the undersigned Wagner Havana, Inc., a Delaware
corporation ("Havana"), hereby absolutely and unconditionally
promises to pay to the order of Wagner Castings Company ("Wagner")
at Wagner's head office at 825 N. Lowber Street, Decatur, Illinois
62521 or at such other location as Wagner may designate:
(a) the principal amount of Seven Million Five Hundred
Thousand Dollars ($7,500,000) or, if less, the aggregate
unpaid principal amount of Havana Advances and Havana
Intercompany Advances by Wagner to Havana pursuant to
Section 2.2(g) of the Loan and Security Agreement dated
as of May 28, 1993 (as amended and in effect from time to
time, the "Agreement") among Sudbury, Inc., Cast-Matic
Corporation, Frisby Mfg. Co., Industrial Powder Coatings,
Inc., Iowa Mold Tooling Co., Inc., South Coast Terminals,
Inc., Wagner Castings Company, and BankAmerica Business
Credit, Inc. (the "Agent"), National City Bank, and Star
Bank, National Association and
(b) interest on the principal balance hereof on the first day
of each month hereafter and at maturity (whether by
acceleration, upon prepayment or otherwise) at a
fluctuating per annum rate equal to the Revolving Loan
Margin plus the Reference Rate, subject to the terms of
SUBSECTION 3.1(d) of the Agreement. Such Interest Rate
shall be adjusted simultaneously with any change in the
Reference Rate. Interest charges shall be computed on
the basis of a year of 360 days and actual days elapsed
and shall be payable monthly in arrears on the first day
of each calendar month hereafter, and as otherwise
provided herein.
This Note evidences borrowings under and has been issued by Havana
in accordance with the terms of the Agreement. Wagner, the Agent,
and any holder hereof are entitled to the benefits of the Agreement
and the other Loan Documents and may enforce the agreements of
Havana contained therein, and any holder may exercise the
respective remedies provided for thereby or otherwise available in
respect thereof, all in accordance with the respective terms
thereof. All capitalized terms used in this Note and not otherwise
defined herein shall have the same meanings herein as in the
Agreement.
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Havana irrevocably authorizes Wagner to make or cause to be made,
at or about the time of any Havana Advance or Havana Intercompany
Advance or at the time of receipt of any payment of this Note, an
appropriate notation on the grid attached to the Note, or the
continuation of such grid, or any other similar record, including
computer records reflecting the making of such Havana Advance or
Havana Intercompany Advance (as the case may be) or the receipt of
such payment. A copy of the grid will be furnished on a monthly
basis to the Agent. The outstanding amount of the Havana Advance
set forth on the grid attached to this Note, or the continuation of
such grid, or any other similar record, including computer records
maintained by Wagner or the Agent with respect to any Havana
Advance shall be PRIMA FACIE evidence of the principal amount
thereof owing and unpaid to Wagner, but the failure to record or
any error in so recording any such amount on any such grid,
continuation, or other record shall not limit or otherwise affect
the obligation of Havana hereunder or under the Agreement to make
payments of principal of and interest on this Note when due.
Havana has the right to prepay the whole or part of the principal
of this Note at any time without premium or penalty.
If any one or more events of default shall occur in the Havana
Security Agreement executed between Wagner and Havana as of May 28,
1993, the entire unpaid principal amount of this Note and all of
the unpaid interest accrued thereon may become or be declared due
and payable.
No delay or omission on the part of Wagner, the Agent, or any
holder hereof in exercising any right hereunder shall operate as a
waiver of such right or of any other rights of Wagner, the Agent,
or such holder, nor shall any delay, omission, or waiver on any one
occasion be deemed a bar or waiver of the same or any other right
on any further occasion.
Havana waives presentment, demand, notice, protest, and all other
demands and notices in connection with the delivery, acceptance,
performance, default, or enforcement of this Note, assent to any
extension or postponement of the time of payment, or any other
indulgence to any substitution, exchange, or release of collateral,
and to the addition or release of any other party or person
primarily or secondarily liable.
This Note and the obligations of Havana hereunder shall for all
purposes be governed by and construed in accordance with the law of
the State of Illinois (excluding the laws applicable to conflicts
or choice of law). Havana agrees that any suit for the enforcement
of this Note may be brought in the courts of the State of Illinois
or any federal court sitting therein and the consent to the
nonexclusive jurisdiction of such court and the service of process
in any such suit being made upon Havana by mail at 825 N. Lowber
Street, Decatur, Illinois 62521. Havana hereby waives any
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objection that it may now or hereafter have to the venue of any
such suit or any such court or that such suit is brought in any
inconvenient court.
Havana hereby acknowledges and agrees that this Note shall be
assigned, transferred, and pledged by Wagner to the Agent for the
ratable benefit of the Lenders in order to secure the Obligations
of Wagner under the Agreement.
Havana further hereby represents and warrants to Wagner and its
assignees and transferees hereunder that Havana is familiar with
and has an understanding of the terms, conditions, and provisions
of the Agreement.
None of the terms and provisions of this Note may be amended,
modified, or changed in any respect without the prior written
consent of the Agent.
IN WITNESS WHEREOF, Havana has caused this Note to be signed in its
corporate name and its corporate seal to be impressed hereon by its
duly authorized officer as of the day and year first above written.
[Corporate Seal] WAGNER HAVANA, INC.
By:
-------------------------
Its:
------------------------
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WAGNER HAVANA, INC. GRID
Amount Amount of Amount of Balance
Beginning of Havana Principal of
Loan Havana Intercompany Paid or Principal Notation
Date Balance Advance Advances Prepaid Unpaid Made By
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