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Document Preview Credit Agreement [Amended and Restated] |
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Title: |
Credit Agreement [Amended and Restated] |
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Entities: |
Chase Manhattan Bank; CPI Aerostructures Inc.; JPMorgan Chase Bank; Bank of New York |
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Date: |
2002 |
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Size: |
Preview shows 18KB of 190KB total |
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Price: |
$49 |
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ID: |
#411184 |
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Start of Preview |
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$3,611,517.41
AMENDED AND RESTATED CREDIT AGREEMENT
among
CPI AEROSTRUCTURES, INC.
and
KOLAR, INC.
as Borrowers,
The Several Lenders
from Time to Time Parties Hereto,
and
JPMorgan Chase Bank
as Administrative Agent
Dated as of June 25, 2002
{Page}
{Table}
{Caption}
TABLE OF CONTENTS
Page
{S} {C} {C}
SECTION 1. DEFINITIONS.........................................................................................2
1.1 Defined Terms.......................................................................................2
1.2 Other Definitional Provisions......................................................................16
SECTION 2. RESTATEMENT OF LOANS AND TERMS OF REPAYMENT........................................................16
2.1 Loans..............................................................................................16
2.2 Repayment of Loans.................................................................................17
2.3 Fees...............................................................................................18
2.4 Optional Prepayments...............................................................................18
2.5 Mandatory Prepayments..............................................................................18
2.6 Application of Prepayments.........................................................................19
2.7 Interest Rates and Payment Dates...................................................................19
2.8 Late Payment.......................................................................................19
2.9 Interest After Event of Default....................................................................20
2.10 Computation of Interest............................................................................20
2.11 Pro Rata Treatment; Application of Certain Prepayments.............................................20
2.12 Taxes..............................................................................................21
SECTION 3. REPRESENTATIONS AND WARRANTIES.....................................................................22
3.1 Financial Condition................................................................................22
3.2 No Change..........................................................................................22
3.3 Corporate Existence, Compliance with Law...........................................................22
3.4 Corporate Power; Authorization, Enforceable Obligations............................................23
3.5 No Legal Bar.......................................................................................23
3.6 No Material Litigation.............................................................................23
3.7 No Default.........................................................................................23
3.8 Ownership of Property; Liens.......................................................................24
3.9 Intellectual Property..............................................................................24
3.10 Taxes..............................................................................................24
3.11 Federal Regulations................................................................................24
3.12 Labor Matters......................................................................................24
3.13 ERISA..............................................................................................24
3.14 Investment Company Act; Other Regulations..........................................................25
3.15 Subsidiaries.......................................................................................25
3.16 Environmental Matters..............................................................................25
3.17 Accuracy of Information, etc.......................................................................26
3.18 Security Documents.................................................................................27
3.19 Solvency...........................................................................................27
3.20 Senior Indebtedness................................................................................27
3.21 Regulation H.......................................................................................27
SECTION 4. CONDITIONS PRECEDENT...............................................................................27
i
{Page}
SECTION 5. AFFIRMATIVE COVENANTS..............................................................................30
5.1 Financial Statements...............................................................................30
5.2 Certificates; Other Information....................................................................30
5.3 Payment of Obligations.............................................................................31
5.4 Conduct of Business and Maintenance of Existence, etc..............................................31
5.5 Maintenance of Property, Insurance.................................................................32
5.6 Inspection of Property, Books and Records; Discussions.............................................32
5.7 Notices............................................................................................33
5.8 Environmental Laws.................................................................................33
5.9 Additional Collateral, etc.........................................................................33
SECTION 6. NEGATIVE COVENANTS.................................................................................34
6.1 Financial Condition Covenants......................................................................35
6.2 Limitation on Indebtedness.........................................................................35
6.3 Limitation on Liens................................................................................36
6.4 Limitation on Fundamental Changes..................................................................37
6.5 Limitation on Sale of Assets.......................................................................37
6.6 Limitation on Dividends............................................................................37
6.7 Limitation on Capital Expenditures.................................................................37
6.8 Limitation on Investments, Loans and Advances......................................................37
6.9 Limitation on Payments and Modifications with respect to Seller Note, Seller Security Documents....38
6.10 Limitation on Transactions with Affiliates.........................................................38
6.11 Limitation on Sales and Leasebacks.................................................................38
6.12 Limitation on Changes in Fiscal Periods............................................................38
6.13 Limitation on Negative Pledge Clauses..............................................................38
6.14 Limitation on Restrictions on Subsidiary Distributions.............................................38
6.15 Limitation on Lines of Business....................................................................39
6.16 Limitation on Change in Accounting Treatment.......................................................39
SECTION 7. EVENTS OF DEFAULT..................................................................................39
SECTION 8. THE ADMINISTRATIVE AGENT...........................................................................42
8.1 Appointment........................................................................................42
8.2 Delegation of Duties...............................................................................42
8.3 Exculpatory Provisions.............................................................................42
8.4 Reliance by Administrative Agent...................................................................43
8.5 Notice of Default..................................................................................43
8.6 Non-Reliance on Administrative Agent and Other Lenders.............................................43
8.7 Indemnification....................................................................................44
8.8 Administrative Agent in Its Individual Capacity....................................................44
8.9 Successor Administrative Agent.....................................................................45
8.10 Authorization to Release Liens.....................................................................45
ii
{Page}
SECTION 9. PRIOR GUARANTEE....................................................................................45
9.1 Continued Effect of Prior Guarantee................................................................45
9.2 CPI and Kolar, Inc. as Co-Borrowers................................................................45
9.3 No Subrogation Contribution, Reimbursement or Indemnity............................................46
SECTION 10. MISCELLANEOUS......................................................................................46
10.1 Amendments and Waivers.............................................................................46
10.2 Notices............................................................................................47
10.3 No Waiver; Cumulative Remedies.....................................................................48
10.4 Survival of Representations and Warranties.........................................................48
10.5 Payment of Expenses and Taxes......................................................................48
10.6 Successors and Assigns; Participations and Assignments.............................................49
10.7 Adjustments; Set-off...............................................................................51
10.8 Counterparts.......................................................................................52
10.9 Severability.......................................................................................52
10.10 Integration........................................................................................52
10.11 GOVERNING LAW......................................................................................52
10.12 Submission To Jurisdiction, Waivers................................................................52
10.13 Acknowledgements...................................................................................53
10.14 WAIVERS OF JURY TRIAL..............................................................................53
{/Table}
iii
{Page}
A.
SCHEDULES:
1.1 Schedule of Loans
6.3(f) Existing Liens
EXHIBITS:
A. Form of Replacement Term Note (Tranche A)
B. Tranche C Intercreditor and Subordination Agreement
C. Tranche C Term Note
D. Amendment to Seller Intercreditor and Subordination Agreement
E. Amendment to Guarantee and Collateral Agreement
F. Closing Certificate
G. Legal Opinion of Graubard Miller
H. Mortgage, Fixture Filing and Assignment of Leases And Rents (Tranche C
Mortgage)
I. Amendment to Security Agreement between the Seller and the
Administrative Agent
J. Amended and Restated Seller Note
K. CPI Seller Guaranty Amendment
L Seller Mortgage Subordination Agreement
M. Mortgage Modification Agreement
N. Form of Assignment and Acceptance
O. Form of Compliance Certificate
iv
{Page}
AMENDED AND RESTATED CREDIT AGREEMENT, dated as of June 25, 2002, among
CPI AEROSTRUCTURES, INC., a New York corporation ("CPI"), KOLAR, INC., a
Delaware corporation (collectively with CPI, the "Borrowers"), the several banks
and other financial institutions or entities from time to time parties to this
Agreement (the "Lenders"), and JPMORGAN CHASE BANK, as Administrative Agent.
RECITALS
A. The Borrowers and JP Morgan Chase Bank (formerly known as Chase
Manhattan Bank) as Administrative Agent heretofore entered into a Credit
Agreement as amended by the amendments referred to in Recital C below (the
"Original Credit Agreement") dated as of October 9, 1997, pursuant to which
Chase Manhattan Bank and Mellon Bank, N.A as Lenders ("Original Lenders") made
certain term loans to Kolar, Inc., designated therein as "Tranche A Term Loans"
and "Tranche B Term Loans" in amounts aggregating $10,375,000. CPI guaranteed
Kolar, Inc.'s obligations under the Tranche A and Tranche B Term Loans. CPI's
obligations as guarantor are secured under a Guarantee and Collateral Agreement
dated October 9, 1997 as the same is being amended contemporaneously herewith.
B. As permitted under the original Credit Agreement, the Original
Lenders provided lines of credit ("Line of Credit Loans") to CPI and Kolar, Inc.
as co-borrowers, originally aggregating $1,000,000, and increasing to $1,700,000
pursuant to the Eighth Amendment to the Original Credit Agreement dated October
30, 2001, each such Line of Credit Loan constituting a "Permitted Line of
Credit" as defined under Section 6.2(e) of the Original Credit Agreement.
C. The Original Credit Agreement has been amended pursuant to ten
separate Amendments and observance of certain terms of the Original Credit
Agreement has been waived pursuant to certain waivers and other writings,
pursuant to which, among other matters, the repayment terms applicable to the
Tranche A Term Loans have been changed.
D. GECapital CFE, Inc. is the Assignee of Mellon Bank, N.A. with
respect to the portion of the Tranche A Term Loan, the Tranche B Term Loan and
the Line of Credit Notes originally held by Mellon Bank as the same have been
reduced by payments thereon.
E. JPMorgan Chase Bank as assignee of JPMorgan Leasing, Inc., (formerly
Chase Equipment Leasing, Inc.), an affiliate of JPMorgan Chase Bank, as
equipment lessor to Kolar, Inc., is the holder of indebtedness of Kolar, Inc. in
the principal amount of $704,484.41 representing the net deficiency ("Deficiency
Debt") arising from the sale by such affiliate of certain equipment previously
leased to Kolar, Inc.; and the Lenders and the Borrowers have agreed that the
Deficiency Debt shall be included within this Amended and Restated Credit
Agreement and shall be secured by the assets of the Borrowers, subordinated and
junior in right of payment, however, to the payment of the Tranche A and Tranche
B Term Loans.
{Page}
F. The Lenders and the Borrowers have agreed, pursuant to this Amended
and Restated Credit Agreement, to restructure all of the outstanding
indebtedness of the Borrowers (1) under the Original Credit Agreement (in the
case of CPI whether such indebtedness arises out of its status as a co-borrower
under the Permitted Lines of Credit or as a guarantor of the Tranche A and
Tranche B Term Loans) and (2) under the Deficiency Debt, which shall constitute
a Tranche C Term Loan under this Amended and Restated Credit Agreement.
G. The holder of the Seller Note (as defined below) which has been
subordinated and junior in right of payment to the Tranche A and Tranche B Term
Loans and Line of Credit Loans, has agreed that (1) all accrued and unpaid
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