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Exhibit 4.1
[EXECUTION COPY]
THIRD AMENDMENT TO
THE CREDIT AGREEMENT
This THIRD AMENDMENT, dated as of June 26, 1998 (this "AMENDATORY
AGREEMENT"), to the Existing Credit Agreement (as defined below), is made among
DAYTON SUPERIOR CORPORATION, an Ohio corporation (the "BORROWER"), the various
financial institutions signatories hereto as Revolving Lenders (the "REVOLVING
LENDERS"), DLJ CAPITAL FUNDING, INC., as syndication agent (the "SYNDICATION
AGENT"), BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, as
documentation agent (the "DOCUMENTATION AGENT"), BANKERS TRUST COMPANY, as
administrative agent (the "ADMINISTRATIVE AGENT") and BANK ONE, N.A., as
facility agent (the "FACILITY AGENT").
WITNESSETH
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WHEREAS, the Borrower, the Lenders, and the Agents are parties to a
Credit Agreement, dated as of September 29, 1997, as amended by Amendment No. 1
and Amendment No. 2 thereto (as so amended, the "EXISTING CREDIT AGREEMENT");
WHEREAS, the Borrower has requested that the Revolving Lenders amend
the Existing Credit Agreement in certain respects; and
WHEREAS, the Revolving Lenders have agreed, subject to the terms and
conditions hereinafter set forth, to amend the Existing Credit Agreement in
certain respects as provided below (the Existing Credit Agreement, as so amended
by this Amendatory Agreement, being referred to as the "CREDIT AGREEMENT");
NOW, THEREFORE, in consideration of the agreements herein contained,
the parties hereto agree as follows:
PART I
DEFINITIONS
SUBPART 1.1 - CERTAIN DEFINITIONS. The following terms (whether or not
underscored) when used in this Amendatory Agreement shall have the following
meanings (such meanings to be equally applicable to the singular and plural form
thereof):
"ADMINISTRATIVE AGENT" is defined in the PREAMBLE.
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"AMENDATORY AGREEMENT" is defined in the PREAMBLE.
"AMENDMENT NO. 3" is defined in SUBPART 3.1.
"BORROWER" is defined in the PREAMBLE.
"CREDIT AGREEMENT" is defined in the THIRD RECITAL.
"DOCUMENTATION AGENT" is defined in the PREAMBLE.
"EXISTING CREDIT AGREEMENT" is defined in the FIRST RECITAL.
"FACILITY AGENT" is defined in the PREAMBLE.
"THIRD AMENDMENT EFFECTIVE DATE" is defined in the SUBPART 3.1.
"REVOLVING LENDERS" is defined in the PREAMBLE.
"SYNDICATION AGENT" is defined in the PREAMBLE.
SUBPART 1.2 OTHER DEFINITIONS. Terms for which meanings are provided in
the Existing Credit Agreement are, unless otherwise defined herein or the
context otherwise requires, used in this Amendatory Agreement with such
meanings.
PART II
AMENDMENTS TO THE
EXISTING CREDIT AGREEMENT
Effective on (and subject to the occurrence of) the Third Amendment
Effective Date, the Existing Credit Agreement is hereby amended in accordance
with this Part II. Except as so amended, the Existing Credit Agreement shall
continue in full force and effect in accordance with its terms.
SUBPART 2.1. AMENDMENTS TO SECTION 1.1. Section 1.1 of the Existing
Credit Agreement is hereby amended by inserting the following definitions in
such Section in the appropriate alphabetical sequence:
"AMENDMENT NO. 3" means the Third Amendment to the Credit
Agreement, dated as of June 26,1998, among the Borrower, the Revolving
Lenders signatory thereto, and the Agents.
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"THIRD AMENDMENT EFFECTIVE DATE" is defined in Subpart 3.1 of
Amendment No. 3.
SUBPART 2.2. CLAUSE (b) of Section 7.2.4 of the Existing Credit
Agreement is hereby amended to read in its entirety as follows:
(b) FIXED CHARGE COVERAGE RATIO. The Borrower will not permit
the Fixed Charge Coverage Ratio as of the end of any Fiscal Quarter to
be less than the ratio of 1.30:1; PROVIDED, that for purposes of
computing the Fixed Charge Coverage Ratio for any period commencing
with the Fiscal Quarter ending June 30, 1998, "CAPITAL EXPENDITURES"
shall not include any expenditures for the purchase of Rental Equipment
made during such period which, in accordance with GAAP, would be
classified as capital expenditures.
SUBPART 2.3. Section 7.2.7 of the Existing Credit Agreement is hereby
amended to read in its entirety as follows:
SECTION 7.2.7. CAPITAL EXPENDITURES, ETC. The Borrower will
not, and will not permit any of its Subsidiaries to, make or commit to
make Capital Expenditures in any Fiscal year, except Capital
Expenditures which do not aggregate in excess of 8% of the total
consolidated revenues of the Borrower and its Subsidiaries for the
immediately preceding Fiscal Year (with the revenues of any Subsidiary
of the Borrower acquired during such Fiscal Year to include all
revenues of such Subsidiary for the portion of such Fiscal Year
preceding such acquisition); PROVIDED, HOWEVER, that to the extent the
amount of Capital Expenditures permitted to be made in any Fiscal year
pursuant to this Section exceeds the aggregate amount of Capital
Expenditures actually made during such Fiscal Year, up to 50% of such
excess amount may be carried forward to (but only to) the next
succeeding Fiscal Year (any such amount to be certified by the Borrower
to the Agents in the Compliance Certificate delivered for the last
Fiscal Quarter of such Fiscal Year, and any such amounts carried
forward to a succeeding Fiscal Year shall to be deemed to be used
prior to the Borrower and its Subsidiaries using the amount of
Capital Expenditures permitted by this Section without giving
effect to such carry-forward).
SUBPART 2.4. Clause (c) of Section 7.2.9 of the Existing Credit
Agreement is hereby amended to read in its entirety as follows:
(c) so long as no Default has occurred and is continuing or
would occur after giving effect thereto, the Borrower or any of its
Subsidiaries may purchase all or substantially all of the assets of any
Person, or acquire such Person by merger, if permitted (without
duplication) by SECTION 7.2.5 to be made as an Investment.
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PART III
CONDITIONS TO EFFECTIVENESS
SUBPART 3.1. THIRD AMENDMENT EFFECTIVE DATE. This Amendatory Agreement
(and the amendments and modifications contained herein) shall become effective,
and shall thereafter be referred to as "AMENDMENT NO. 3", on the date (the
"THIRD AMENDMENT EFFECTIVE DATE") when all of the conditions set forth in this
SUBPART 3.1 have been satisfied.
SUBPART 3.1.1, EXECUTION OF COUNTERPARTS. The Facility Agent shall have
received counterparts of this Amendatory Agreement, duly executed and delivered
on behalf of the Borrower and each of the Required Revolving Lenders.
SUBPART 3.1.2. EXECUTION OF LOAN DOCUMENTS, ETC. The Facility Agent
shall have received counterparts of a supplement to the Subsidiary Guaranty and
a supplement to the Subsidiary Security Agreement duly executed and delivered by
Concrete Accessories, Inc. and the Facility Agent, together with (i)
certificates representing all of the issued and outstanding shares of Capital
Stock of Concrete Accessories, Inc. owned by the Borrower, along with undated
stock powers for such certificates, executed in blank, and (ii) acknowledgment
copies of Uniform Commercial Code financing statements executed and delivered by
Concrete Accessories, Inc., as debtor, and the Facility Agent, as secured party,
filed under the UCC in all jurisdictions necessary or, in the reasonable opinion
of the Agent, desirable to perfect the security interest of the Facility Agent
pursuant to the Subsidiary Security Agreement.
SUBPART 3.1.3. LEGAL DETAILS ETC. All documents executed or submitted
pursuant hereto shall be satisfactory in form and substance to the Agents and
their counsel. The Agents and their counsel shall have received all information
and such counterpart originals or such certified or other copies or such
materials, as the Agents or their counsel may reasonably request, and all legal
matters incident to the transactions contemplated by this Amendatory Agreement
shall be satisfactory to the Agents and their counsel.
PART IV
MISCELLANEOUS
SUBPART 4.1. CROSS-REFERENCES. References in this Amendatory Agreement
to any Part or Subpart are, unless otherwise specified or otherwise required by
the context, to such Part or Subpart of this Amendatory Agreement.
SUBPART 4.2. LOAN DOCUMENT PURSUANT TO EXISTING CREDIT AGREEMENT. This
Amendatory Agreement is a Loan Document executed pursuant to the Existing Credit
Agreement and shall be construed, administered and applied in accordance with
all the terms and provisions of the Existing Credit Agreement.
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SUBPART 4.3. COMPLIANCE WITH WARRANTIES, NO DEFAULT, ETC. The Borrower
represents and warrants on the Third Amendment Effective Date for its
Subsidiaries and itself, both before and after the effect to this Amendatory
Agreement, as follows:
(a) the representations and warranties set forth in Article VI
of the Credit Agreement (excluding those contained in Section 6.7
thereof) and in each other Loan Document are, in each case, true and
correct in all material respects (unless stated to relate solely to an
earlier date, in which case such representations and warranties were
true and correct in all material respects as of such earlier date);
(b) no adverse development has occurred in any litigation,
action, proceeding, labor controversy, arbitration or governmental
investigation disclosed pursuant to Section 6.7 of the Credit Agreement
which could reasonably be expected to have a Material Adverse Effect;
(c) the sum of (A) the aggregate outstanding principal amount
of all Revolving Loans and (B) the aggregate amount of all Letter of
Credit Outstandings does not exceed the lesser of (c) the Revolving
Loan Commitment Amount and (y) the Borrowing Base Amount; and
(d) no Default has occurred and is continuing, and neither the
Borrower, any other Obligor, nor any of its Subsidiaries are in
material violation of any law or governmental regulation or court order
or decree.
SUBPART 4.4. SUCCESSORS AND ASSIGNS. This Amendatory Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns.
SUBPART 4.5. COUNTERPARTS. This Amendatory Agreement may be executed by
the parties hereto in several counterparts, each of which when executed and
delivered shall be deemed to be an original and all of which shall constitute
together but one and the same agreement.
SUBPART 4.6. GOVERNING LAW. THIS AMENDATORY AGREEMENT SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.
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DLJ CAPITAL FUNDING, INC., as
Syndication Agent
By:
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Title:
BANKERS TRUST COMPANY, as
Administrative Agent
By:
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Title:
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IN WITNESS WHEREOF, the parties hereto have caused this Amendatory
Agreement to be executed by their respective officers thereunto duly authorized
as of the day and year first above written.
DAYTON SUPERIOR CORPORATION
By: /s/ Xxxx X. Xxxxxxxxxx
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Title: Treasurer
BANK ONE, N.A., as Facility Agent and a
Revolving Leader
By: /s/ Xxxxx X. Xxxxxxxx
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Title: Vice President
BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION, as
Documentation Agent and a Revolving Leader
By: /s/ Xxxxxxxxx X. Xxxxxxx
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Title: Senior Vice President
NATIONAL CITY BANK OF DAYTON, as
a Revolving Lender
By: /s/ Xxxx X. Xxxxxx
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Title: Vice President