Exhibit 10.1
Execution
CONSENT, WAIVER AND AMENDMENT NO. 2
TO
LOAN AND SECURITY AGREEMENT
CONSENT, WAIVER AND AMENDMENT NO. 2 TO LOAN AND SECURITY AGREEMENT, dated
as of June 14, 2006 (this "Amendment"), by and among Wachovia Bank, National
Association, in its capacity as agent pursuant to the Loan Agreement (as
hereinafter defined) acting for and on behalf of the financial institutions
which are parties thereto as lenders (in such capacity, "Agent"), the financial
institutions which are parties to the Loan Agreement as lenders (individually,
each a "Lender" and collectively, "Lenders"), C&D Technologies, Inc., a Delaware
corporation ("Parent"), C&D Technologies (Datel), Inc., a Delaware corporation
("Datel"), C&D Technologies (CPS) LLC, a Delaware limited liability company
("CPS, and together with Parent and Datel, each individually a "Borrower" and
collectively, "Borrowers" as hereinafter further defined), C&D Charter Holdings,
Inc., a Delaware corporation ("Charter"), C&D Dynamo Corp., a Delaware
corporation ("Dynamo"), Dynamo Acquisition Corp., a Delaware corporation
("Acquisition"), C&D International Investment Holdings Inc., a Delaware
corporation ("International") and Datel Holding Corporation, a Delaware
corporation ("Datel Holding", and together with Charter, Dynamo, Acquisition and
International, each individually a "Guarantor" and collectively, "Guarantors".
All capitalized terms used herein shall have the meanings assigned thereto in
the Loan Agreement unless otherwise defined herein.
W I T N E S S E T H :
WHEREAS, Agent, Lenders, Borrowers and Guarantors have entered into
financing arrangements pursuant to which Lenders (or Agent on behalf of Lenders)
have made and may make loans and advances and provide other financial
accommodations to Borrowers as set forth in the Loan and Security Agreement,
dated December 7, 2005, by and among Agent, Lenders, Borrowers and Guarantors
(as amended by Amendment No. 1 to Loan and Security Agreement, dated March 30,
2006, by and among Agent, Lenders, Borrowers and Guarantors ("Amendment No. 1")
and as the same may hereafter be further amended, modified, supplemented,
extended, renewed, restated or replaced, the "Loan Agreement"), and the other
agreements, documents and instruments referred to therein or at any time
executed and/or delivered in connection therewith or related thereto, including,
but not limited to, this Amendment (all of the foregoing, together with the Loan
Agreement, as the same now exist or may hereafter be amended, modified,
supplemented, extended, renewed, restated or replaced, being collectively
referred to herein as the "Financing Agreements");
WHEREAS, Borrowers have advised Agent that Danescroft Commercial
Developments Limited 2 ("Purchaser") is negotiating to enter into an Agreement
by and between C&D Technologies (NCL) Ltd., as seller ("Seller") and Purchaser
(the "Purchase Agreement" and, together with all agreements, documents and
instruments referred to therein or at any time executed and/or delivered in
connection therewith or related thereto, collectively the "Purchase Documents")
pursuant to which Seller will sell to Purchaser all of the right, title and
interest of
Seller in the real property located at ▇▇▇▇▇▇ Keynes, England (the "▇▇▇▇▇▇
Keynes Property"); and
WHEREAS, Borrowers have requested that Agent and Lenders (i) consent to the
sale of the ▇▇▇▇▇▇ Keynes Property, (ii) waive the Events of Default arising
from the failure of the Borrowers to deliver to the Agent a Mortgage on the Real
Property of Datel located in Mansfield, Massachusetts (the "Mansfield Property")
pursuant to the terms of Amendment No. 1and (iii) make certain other amendments
to the Loan Agreement, and Lenders are willing to provide such consent and make
such amendments, subject to the terms conditions contained herein.
NOW, THEREFORE, in consideration of the foregoing, the mutual agreements
and covenants contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
1. Additional Definition. As used herein, the following term shall have the
meaning given to it below and the Loan Agreement shall be deemed and is hereby
amended to include, in addition and not in limitation, the following definition:
"▇▇▇▇▇▇ Keynes Property Proceeds" shall mean the Net Cash
Proceeds of the sale of the Real Property of C&D Technologies
(NCL) Ltd. located in ▇▇▇▇▇▇ Keynes, England, net of the cost
basis of such Real Property in the amount of (pound)150,000 Pound
Sterling, remitted to Agent in accordance with Consent, Waiver
and Amendment No. 2 to Loan and Security Agreement, dated as of
June 14, 2006, by and among Agent, Lenders, Borrowers and
Guarantors."
2. Amendment of Defined Term.
Section 1.10 of the Loan Agreement is deleted in its entirety and the
following substituted therefor:
"'Availability Block' shall mean $10,000,000 as increased by
the ▇▇▇▇▇▇ Keynes Property Proceeds; provided, that, the
Availability Block shall be zero plus the amount of the ▇▇▇▇▇▇
Keynes Property Proceeds if as of December 31, 2006 no Default or
Event of Default shall exist or have occurred and be continuing.
Notwithstanding the foregoing, in no event shall the Availability
Block be less than $10,000,000 plus the amount of the ▇▇▇▇▇▇
Keynes Property Proceeds prior to December 31, 2006."
2
3. Consent. Subject to the terms and conditions contained herein, Agent and
Lenders hereby consent to the sale by Seller of the ▇▇▇▇▇▇ Keynes Property to
Purchaser in accordance with the terms and conditions of the Purchase Agreement;
provided, that, each of the following conditions shall be satisfied as
determined by Agent:
(a) all of the ▇▇▇▇▇▇ Keynes Property Proceeds (which shall in any
event be not less than the US Dollar Equivalent of $275,000) shall be
remitted to Agent for application to the outstanding principal amount of
the Revolving Loans, it being agreed that the Availability Block shall be
increased by the full amount thereof; and
(b) Agent shall have received (i) an executed copy of the Deed by
Seller transferring the ▇▇▇▇▇▇ Keynes Property to Purchaser duly executed
by the parties thereto, and (ii) an executed copy of the Purchase Agreement
and all other material Purchase Documents, duly executed by the parties
thereto.
4. Waiver of Events of Default.
(a) Subject to the satisfaction of each of the conditions precedent
set forth in Section 4 hereof, Lender hereby waives the Event of Defaults
described on Schedule 1 hereto (collectively, the "Existing Defaults").
(b) Agent and Lenders have not waived, are not by this Amendment
waiving, and have no intention of waiving any Event of Default which may
have occurred on or prior to the date hereof, whether or not continuing on
the date hereof, or which may occur after the date hereof (whether the same
or similar to the Events of Default referred to in Section 4(a) above or
otherwise), other than the Existing Defaults (subject to the terms and
conditions set forth in Section 4(a) above). The foregoing waiver shall not
be construed as a bar to or a waiver of any other or further Event of
Default on any future occasion, whether similar in kind or otherwise and
shall not constitute a waiver, express or implied, of any of the rights and
remedies of Agent and Lenders arising under the terms of the Loan Agreement
or any other Financing Agreements on any future occasion or otherwise,
other than with respect to the Existing Defaults (subject to the terms and
conditions set forth in Section 4(a) above).
5. Representations, Warranties and Covenants. Borrowers and Guarantors
represent, warrant and covenant with and to Agent and Lenders as follows, which
representations, warranties and covenants are continuing and shall survive the
execution and delivery hereof, and the truth and accuracy of, or compliance with
each, together with the representations, warranties and covenants in the other
Financing Agreements, being a continuing condition of the making of Loans by
Lenders (or Agent on behalf of Lenders) to Borrowers:
(a) neither the execution, delivery and performance of this Amendment,
or any other Financing Agreements in connection herewith, nor the
consummation of the transactions herein or therein contemplated, are in
contravention of law or any indenture, agreement or undertaking to which
any Borrower or Guarantor is a party or by which any Borrower or Guarantor
or its property are bound, or violates any provision of the Certificate of
Incorporation or By-Laws (or similar governing documents) of any Borrower
or Guarantor;
3
(b) as of the date of this Amendment, no Default or Event of Default
exists or has occurred and is continuing;
(c) Borrowers and Guarantors have delivered to Agent true, correct and
complete copies of the Purchase Agreement and the other material Purchase
Documents, together with all exhibits and schedules thereto, as executed by
the parties thereto;
(d) Borrowers and Guarantors shall cause the ▇▇▇▇▇▇ Keynes Property
Proceeds to be paid to Agent for application to the outstanding principal
amount of the Revolving Loan, no later than thirty (30) days after the
closing of the sale of the ▇▇▇▇▇▇ Keynes Property as contemplated by the
Purchase Documents;
(e) in the event any Borrower, any Guarantors or any of their
respective affiliates receives any amounts at any time payable to any
Borrower, any Guarantor or any of their respective affiliates pursuant to
the Purchase Documents, such amounts shall be collected by such Borrower,
Guarantor or affiliate, as the case may be, as the property of Agent and
held by it or them in trust for Agent and shall be remitted promptly to
Agent for application in accordance herewith;
(f) this Amendment, the Purchase Documents and each other agreement or
instrument to be executed and/or delivered by any Borrower or Guarantor in
connection herewith or therewith have been duly authorized, executed and
delivered by all necessary action on the part of such Borrower or Guarantor
which is a party hereto and thereto and, if necessary, its stockholders or
equity holders, as the case may be, and is in full force and effect as of
the date hereof, and the agreements and obligations of each Borrower and
Guarantor contained herein and therein constitute legal, valid and binding
obligations of such Borrower or Guarantor enforceable against it in
accordance with their terms, except as such enforceability may be limited
by bankruptcy, insolvency, moratorium or similar laws limiting creditors'
rights generally and by general equitable principals; and
(g) no action of, or filing with, or consent of any Governmental
Authority, and no approval or consent of any other party, is required to
authorize, or is otherwise required in connection with, the execution,
delivery and performance by any Borrower or Guarantor of this Amendment, or
the transactions contemplated hereby.
(h) At such time as the note given to Sun Life Assurance Company of
Canada, which is secured by the Mansfield Property (the "Sun Life
Mortgage"), matures or is otherwise satisfied, if (i) Datel grants a
mortgage to another party on the Mansfield Property on terms and conditions
acceptable to Agent, then Datel shall simultaneously grant a second
mortgage thereon to Agent and/or Wachovia as collateral agent for Lenders
and Term Loan Lenders or (ii) Datel does not then grant a mortgage to
another party on the Mansfield Property, then Datel shall within forty-five
(45) days after the release of the Sun Life Mortgage, deliver to Agent
and/or Wachovia as collateral agent for Lenders and Term Loan Lenders, a
Mortgage and title searches on the Mansfield Property, together with a
legal opinion with respect to such Mortgage in substantially the same form
as previously delivered by counsel to Borrowers with respect to Real
Property located in the Commonwealth of Pennsylvania..
4
6. Conditions Precedent. The effectiveness of the consent and amendments
contained herein shall only be effective upon the satisfaction of each of the
following conditions precedent in a manner satisfactory to Agent:
(a) Agent shall have received counterparts of this Amendment, duly
authorized, executed and delivered by Borrowers, Guarantors and Lenders;
(b) Agent shall have received a true and correct copy of any consent,
waiver or approval to or of this Amendment, which any Borrower or Guarantor
is required to obtain from any other Person, and such consent, approval or
waiver shall be in form and substance satisfactory to Agent;
(c) Agent shall have received a true, complete and correct copy of an
amendment to the Term Loan Agreement with respect to the subject matter
hereof, as duly authorized, executed and delivered by the parties thereto;
and
(d) after giving effect to this Amendment no Default or Event of
Default shall exist or have occurred and be continuing.
7. Change of Agent's or Issuing Bank's Address. The notice address and
other information with respect to Agent or Issuing Bank is hereby deleted in its
entirety from Section 13.1(a) and the following substituted therefor:
"If to Agent or Issuing Bank:
Wachovia Bank, National Association
▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇-▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: Portfolio Manager
Telephone No.: ▇▇▇-▇▇▇-▇▇▇▇
Telecopy No.: ▇▇▇-▇▇▇-▇▇▇▇"
8. Effect of this Amendment. This Amendment and the instruments and
agreements delivered pursuant hereto constitute the entire agreement of the
parties with respect to the subject matter hereof and thereof, and supersede all
prior oral or written communications, memoranda, proposals, negotiations,
discussions, term sheets and commitments with respect to the subject matter
hereof and thereof. Except as expressly provided herein, no other changes or
modifications or waivers or consents to the Financing Agreements are intended or
implied, and in all other respects the Financing Agreements are hereby
specifically ratified, restated and confirmed by all parties hereto as of the
effective date hereof. To the extent that any provision of the Loan Agreement or
any of the other Financing Agreements is inconsistent with the provisions of
this Amendment, the provisions of this Amendment shall control.
9. Further Assurances. Each Borrower and Guarantor shall execute and
deliver such additional documents and take such additional action as may be
requested by Agent or Lenders to effectuate the provisions and purposes of this
Amendment.
5
10. Governing Law. The rights and obligations hereunder of each of the
parties hereto shall be governed by and interpreted and determined in accordance
with the internal laws of the State of New York but excluding any principles of
conflicts of law or other rule of law that would cause the application of the
law of any jurisdiction other than the laws of the State of New York.
11. Binding Effect. This Amendment shall be binding upon and inure to the
benefit of each of the parties hereto and their respective successors and
assigns.
12. Counterparts. This Amendment may be executed in any number of
counterparts, but all of such counterparts shall together constitute but one and
the same agreement. In making proof of this Amendment, it shall not be necessary
to produce or account for more than one counterpart thereof signed by each of
the parties hereto. Delivery of an executed counterpart of this Amendment by
telecopier or other method of electronic transmission shall have the same force
and effect as delivery of an original executed counterpart of this Amendment.
Any party delivering an executed counterpart of this Amendment by telecopier or
other method of electronic transmission also shall deliver an original executed
counterpart of this Amendment, but the failure to deliver an original executed
counterpart shall not affect the validity, enforceability, and binding effect of
this Amendment as to such party or any other party.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
6
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed and delivered by their authorized officers as of the day and year
first above written.
AGENT AND LENDER
BORROWERS
WACHOVIA BANK, NATIONAL ASSOCIATION
C&D TECHNOLOGIES, INC.
By: /s/ ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇ By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
------------------------------ --------------------------------
Title: Vice President Title: V.P. TREASURER
--------------------------- -----------------------------
LENDERS C&D TECHNOLOGIES (DATEL), INC.
LASALLE BANK NATIONAL ASSOCIATION By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
--------------------------------
Title: V.P. TREASURER
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ -----------------------------
------------------------------
Title: Vice President C&D TECHNOLOGIES (CPS) LLC
---------------------------
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
--------------------------------
CITIZENS BANK OF PENNSYLVANIA Title: TREASURER
-----------------------------
By: /s/ ▇▇▇ ▇▇▇▇
-----------------------------
Title: Vice President
--------------------------
[SIGNATURES CONTINUE ON NEXT PAGE]
7
[SIGNATURES CONTINUED FROM PREVIOUS PAGE]
GUARANTORS
C&D CHARTER HOLDINGS, INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
------------------------------------
Title: V.P. TREASURER
---------------------------------
C&D DYNAMO CORP.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
------------------------------------
Title: V.P. TREASURER
---------------------------------
DYNAMO ACQUISITION CORP.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
------------------------------------
Title: V.P. TREASURER
---------------------------------
C&D INTERNATIONAL INVESTMENT
HOLDINGS INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
------------------------------------
Title: V.P. TREASURER
---------------------------------
DATEL HOLDING CORPORATION
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
------------------------------------
Title: TREASURER
---------------------------------
8
Schedule 1
to
Consent, Waiver and Amendment No. 2 to Loan and Security Agreement
1. Event of Default under Section 10.1(a)(iii) of the Loan Agreement as a
result of the failure by Borrowers to observe their covenant set forth in
Amendment No. 1 to Loan and Security Agreement to deliver not later than
forty-five (45) days after on the date thereof, a Mortgage with respect to
certain Real Property of Datel located in Mansfield, Massachusetts.
2. Event of Default under Section 10.1(i) of the Loan Agreement as a result
of the default under the Term Loan Agreement resulting from the failure to
deliver the Mortgage referred to in paragraph 1., above.
9