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Exhibit 10.32
THIRD AMENDMENT TO
THIRD AMENDED AND RESTATED CREDIT AGREEMENT
THIS THIRD AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT
AGREEMENT (the "THIRD AMENDMENT") dated as of November 1, 2000 by and among
ZARING HOMES, INC. ("ZARING HOMES"), ZARING HOLDINGS, INC., HEARTHSIDE HOMES,
LLC, ZARING NATIONAL LAND HOLDING CORPORATION, ZARING NATIONAL HOMES HOLDING
CORPORATION, and ZARING LEASING, LLC, as Borrowers and Guarantors, ZARING
NATIONAL CORPORATION ("ZARING NATIONAL"), ZARING HOMES OF INDIANA, L.L.C. and
ZARING HOMES KENTUCKY, LLC ("ZARING HOMES KENTUCKY"), as Guarantors, the Banks
set forth below, BANK OF AMERICA, N.A. and BANK ONE, NA, as Co-Agents, and PNC
BANK, NATIONAL ASSOCIATION, in its capacity as Agent for the Banks (the
"AGENT").
W I T N E S S E T H:
WHEREAS, the Borrowers, the Guarantors, the Banks, the
Co-Agents and the Agent are parties to that certain Third Amended and Restated
Credit Agreement dated as of April 13, 2000, as amended by First Amendment to
Third Amended and Restated Credit Agreement dated as of September 29, 2000 and
the Second Amendment to Third Amended and Restated Credit Agreement dated as of
October 10, 2000 (the "CREDIT AGREEMENT"); and
WHEREAS, the Borrowers and the Guarantors have requested that
certain covenants of the Credit Agreement be amended as set forth herein;
WHEREAS, the Banks are willing to enter into such amendments
on the terms and subject to the conditions set forth herein.
NOW, THEREFORE, the parties hereto, in consideration of their
mutual covenants and agreements hereinafter set forth and intending to be
legally bound hereby, covenant and agree as follows:
1. DEFINITIONS.
Defined terms used herein and not otherwise defined herein shall have
the meanings given to them in the Credit Agreement, as amended by this Third
Amendment.
2. AMENDMENT OF CREDIT AGREEMENT.
A. Section 8.1(n) [Certain Letters of Credit] of the Credit
Agreement is hereby deleted and the following is inserted in lieu thereof:
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(n) CERTAIN LETTERS OF CREDIT.
On or before December 31, 2000, the Loan Parties
shall cause all Letters of Credit issued with respect to the assets
that have been sold pursuant to the Louisville Purchase Agreements, the
Raleigh Purchase Agreement and the Charlotte Purchase Agreement to be
cancelled, replaced or fully cash collateralized.
B. Section 8.2(g) [Disposition of Assets or Subsidiaries] of
the Credit Agreement is hereby amended by deleting such section in its entirety
and inserting in lieu thereof the following:
(g) DISPOSITION OF ASSETS OR SUBSIDIARIES
Each of the Loan Parties shall not sell, convey,
assign, lease, abandon or otherwise transfer or dispose of, voluntarily
or involuntarily, any of its properties or assets, tangible or
intangible (including but not limited to sale, assignment, discount or
other disposition of accounts, contract rights, chattel paper,
equipment or general intangibles, with or without recourse, or of
capital stock, shares of beneficial interest or partnership interests
of a Subsidiary), except:
(i) transactions involving the sale of land and
building inventory in the ordinary course of business;
(ii) any sale, transfer, lease, abandonment or other
disposition of assets in the ordinary course of business which are no
longer necessary or required in the conduct of the Loan Party's
business;
(iii) any sale, transfer or lease of assets in the
ordinary course of business which are replaced by substitute assets
acquired;
(iv) the asset sales by Zaring Homes Kentucky and
Zaring Homes described in (a) the Asset Purchase Agreement and (b) that
certain Termination Agreement dated as of September 29, 2000 by and
among Zaring Homes, Phillip W. Leigh and Martha R. Leigh (the
"TERMINATION AGREEMENT" and, together with the Asset Purchase Agreement
dated as of September 29, 2000 by and among Zaring Homes Kentucky, as
seller, Olympia Homes, LLC, as buyer, and Zaring Homes, as indemnitor,
collectively the "LOUISVILLE PURCHASE AGREEMENTS");
(v) the asset sales by Zaring Homes described in (a)
the Asset Purchase Agreement dated on or about October 10, 2000 by and
between Zaring National and Zaring Homes, as sellers, and the Drees
Company, as purchaser (the "RALEIGH PURCHASE AGREEMENT") and (b) the
Bill of Sale dated as of September 30, 2000 by MacroDyne Power, LLC, as
buyer, and Zaring Homes, Inc., as seller ("BILL OF SALE") and
(vi) the asset sales by Zaring Homes described in the
Asset Purchase Agreement effective as of November 1, 2000 by and
between Zaring
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Homes, as seller, and St. Lawrence Homes, Inc., as purchaser (the
"CHARLOTTE PURCHASE AGREEMENT").
3. CONDITIONS OF EFFECTIVENESS OF THIS THIRD AMENDMENT.
The effectiveness of this Third Amendment is expressly conditioned upon
satisfaction of each of the following conditions precedent:
(a) REPRESENTATIONS AND WARRANTIES; NO DEFAULTS. The representations
and warranties of the Loan Parties contained in Section 6 of the Credit
Agreement shall be true and accurate on the date hereof with the same effect as
though such representations and warranties had been made on and as of such date
(except representations and warranties which relate solely to an earlier date or
time, which representations and warranties shall be true and correct on and as
of the specific dates or times referred to therein); the Loan Parties shall have
performed and complied with all covenants and conditions of the Credit
Agreement; and, except for the violation of Section 8.2(a) [Zaring National Net
Worth] measured at September 30, 2000, resulting from Shareholder Subordinated
Debt not being included in the calculation of Zaring National Net Worth for the
fiscal quarter ending September 30, 2000, no Event of Default or Potential
Default under the Credit Agreement shall have occurred and be continuing or
shall exist.
(b) COUNTERPARTS OF THIRD AMENDMENT. The Agent shall have received
counterparts of this Third Amendment duly executed by the Loan Parties and the
Banks. This Third Amendment may be executed by the parties hereto in any number
of separate counterparts, each of which when taken together and duly executed
and delivered shall together constitute one and the same instrument.
(c) SECRETARY'S CERTIFICATE. The Agent shall have received a
certificate signed by the Secretary or Assistant Secretary of Zaring Homes to
authorize the execution, delivery and performance of the Charlotte Purchase
Agreement and the documents executed in connection therewith.
(d) CLOSING OF ASSET SALES. The Agent shall have received a fully
executed copy of the Charlotte Purchase Agreement and the asset sales
contemplated by the Charlotte Purchase Agreement shall be consummated
substantially on the terms set forth in the drafts of the Charlotte Purchase
Agreement previously provided to the Agent.
(e) CASH PROCEEDS. All cash proceeds received by Zaring Homes pursuant
to the Charlotte Purchase Agreement shall immediately upon receipt be applied to
prepay the Revolving Credit Loans.
4. FORCE AND EFFECT.
Except as expressly modified by this Amendment, the Credit Agreement
and the other Loan Documents are hereby ratified and confirmed and shall remain
in full force and effect on and after the date hereof.
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5. GOVERNING LAW.
This Third Amendment shall be deemed to be a contract under the laws of
the State of Ohio and for all purposes shall be governed by and construed and
enforced in accordance with the internal laws of the State of Ohio without
regard to its conflict of laws principles.
6. FEES AND EXPENSES.
The Borrower hereby agrees to reimburse the Agent and the Banks on
demand for all fees, costs, expenses and disbursements (including without
limitation attorneys' fees) relating to this Third Amendment which are payable
by the Loan Parties as previously agreed to by the Borrower and as provided in
Sections 10 and 11 of the Credit Agreement.
[SIGNATURE PAGES FOLLOW]
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[PAGE 1 OF 3 TO THIRD AMENDMENT TO THIRD AMENDED
AND RESTATED CREDIT AGREEMENT]
BORROWERS AND GUARANTORS:
ZARING HOMES, INC.
By:_______________________________________________
Name: Ronald G. Gratz
Title: Vice President and Chief Financial Officer
ZARING HOLDINGS, INC.
By:_______________________________________________
Name: Ronald G. Gratz
Title: Treasurer
HEARTHSIDE HOMES, LLC
By: Zaring National Corporation, as member
By:_______________________________________________
Name: Ronald G. Gratz
Title: Secretary/Treasurer
ZARING NATIONAL LAND HOLDING CORPORATION
By:_______________________________________________
Name: Ronald G. Gratz
Title: Secretary/Treasurer
ZARING NATIONAL HOMES HOLDING CORPORATION
By:_______________________________________________
Name: Ronald G. Gratz
Title: Secretary/Treasurer
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[SIGNATURE PAGE 2 OF 3 TO THIRD AMENDMENT TO THIRD AMENDED
AND RESTATED CREDIT AGREEMENT]
ZARING LEASING, LLC
By: Zaring National Corporation, as sole member
and manager
By:_______________________________________________
Name: Ronald G. Gratz
Title: Secretary/Treasurer
ZARING NATIONAL CORPORATION
By:_______________________________________________
Name: Ronald G. Gratz
Title: Secretary/Treasurer
ZARING HOMES OF INDIANA, L.L.C.
By: Zaring Homes, Inc., as member
By:_______________________________________________
Name: Ronald G. Gratz
Title: Vice President and Chief Financial Officer
ZARING HOMES KENTUCKY, LLC,
By: Zaring Holdings, Inc., as manager
By:_______________________________________________
Name: Ronald G. Gratz
Title: Treasurer
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[SIGNATURE PAGE 3 OF 3 TO THIRD AMENDMENT TO THIRD AMENDED
AND RESTATED CREDIT AGREEMENT]
AGENT:
PNC BANK, NATIONAL ASSOCIATION,
as Agent and as a Bank
By:_______________________________________________
Name: Thomas J. McCool
Title: Senior Vice President
CO-AGENTS:
BANK OF AMERICA, N.A., as a Co-Agent and as a Bank
By:_______________________________________________
Name: Michelle Chen
Title: Vice President
BANK ONE, NA, as a Co-Agent and as a Bank
By:_______________________________________________
Name: Thomas T. Bower
Title: First Vice President
OTHER BANKS:
COMERICA BANK,
By:_______________________________________________
Name: John F. Regan
Title: Vice President
THE FIFTH THIRD BANK
By:_______________________________________________
Name: Brian L. Rogg
Title: Vice President
