UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): December 9, 2010 (December 3, 2010)
NCI BUILDING SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
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Delaware
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1-14315
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76-0127701
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(State or other jurisdiction of
incorporation)
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(Commission File Number)
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(I.R.S. Employer
Identification Number)
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10943 North Sam Houston Parkway West
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Houston, Texas
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77064
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(Address of principal executive offices)
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(Zip Code)
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Registrants telephone number, including area code:
(281) 897-7788
Check the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following provisions:
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Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 1.01.
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Entry into a Material Definitive Agreement.
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Amendment of the ABL Facility
On
December 3, 2010, NCI Building Systems, Inc. (the Company),
Steelbuilding.com, Inc. (together
with the Company, the Guarantors) and the Companys subsidiaries NCI Group, Inc. and
Robertson-Ceco II Corporation (each a Borrower and collectively, the Borrowers) entered into
Amendment No. 1 to the Loan and Security Agreement (the ABL Facility Amendment) among the
Borrowers, the Guarantors, Wells Fargo Capital Finance, LLC as administrative agent and
co-collateral agent, Bank of America, N.A. as co-collateral agent, General Electric Capital
Corporation as co-collateral agent and certain other Lenders under the Loan and Security Agreement.
Interest Rates
. The ABL Facility Amendment amends the applicable margin on the outstanding
borrowings to be the applicable percentage set forth below based on the quarterly excess
availability under such facility, subject to certain exceptions provided for in the ABL Facility
Amendment.
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Applicable
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Eurodollar Rate
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Applicable
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Tier
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Quarterly Average Excess Availability
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Margin
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Base Rate Margin
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1
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Equal to or greater than $60,000,000
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2.50
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%
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1.50
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%
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2
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Greater than or equal to
$30,000,000 but less than $60,000,000
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2.75
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%
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1.75
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%
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3
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Less than $30,000,000
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3.00
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%
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2.00
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%
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Unused Line Fee
. The ABL Facility Amendment reduces the monthly fee paid for unused amounts
available under the ABL Facility from 1% (per annum) or 0.75% (per annum) based on the average
daily balance of loans and letters of credit obligations outstanding to an annual rate of .5%.
Payment of Cash Dividends.
The ABL Facility Amendment also permits the Company to pay a
cash dividend or other payments once each calendar quarter in an aggregate amount not to exceed
$6,500,000, provided certain excess availability conditions or excess availability conditions and a
fixed charge coverage ratio under the ABL Facility are satisfied.
Amendment Fee
. The Borrowers paid a $25,000 amendment fee on the date that the ABL Facility
Amendment became effective.
The ABL Facility Amendment contains customary representations and warranties of the
Borrowers and Guarantors.
This description of the ABL Facility Amendment set forth herein is summary in nature and is
qualified in its entirety by reference to the text of the ABL Facility Amendment, a copy of which
is attached as Exhibit 2.1 and is incorporated herein by reference.
Certain of the lenders under the ABL Facility and their affiliates have, from time to time,
provided investment banking and financial advisory services to the Borrowers and Guarantors and
their affiliates for which they have received customary fees and commissions. They may provide
these services again from time to time in the future.
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Item 2.03
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Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
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The information included in Item 1.01 of this Form 8-K is hereby
incorporated into this Item 2.03.
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Item 9.01.
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Financial Statements and Exhibits.
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(d) Exhibits.
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Exhibit
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Number
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Description
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2.1
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Amendment No. 1 to Loan and Security Agreement
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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NCI BUILDING SYSTEMS, INC.
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By:
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/s/ Todd R. Moore
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Name:
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Todd R. Moore
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Title:
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Executive Vice President, General
Counsel and Secretary
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Dated: December 9, 2010
Exhibit 2.1
[Execution]
AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT
AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT, dated December 3, 2010 (this Amendment No.
1), is by and among Wells Fargo Capital Finance, LLC, formerly known as Wells Fargo Foothill, LLC,
a Delaware limited liability company, in its capacity as administrative agent and co-collateral
agent pursuant to the Loan Agreement (as hereinafter defined) acting for and on behalf of the
parties thereto as lenders (in such capacity, Agent), the parties to the Loan Agreement as
lenders (individually, each a Lender and collectively, Lenders), Bank of America, N.A., a
national banking association, in its capacity as co-collateral agent (BofA), General Electric
Capital Corporation, a Delaware corporation, in its capacity as co-collateral agent (GECC and
together with Agent and BofA, each individually a Co-Collateral Agent and collectively,
Co-Collateral Agents), NCI Group, Inc., a Nevada corporation (NCI), Robertson-Ceco II
Corporation, a Delaware corporation (Robertson-Ceco, and together with NCI, each individually, a
Borrower and collectively, Borrowers), NCI Building Systems, Inc., a Delaware corporation (NCI
Building Systems or Parent) and Steelbuilding.com, Inc., a Delaware corporation (Steelbuilding
and together with Parent, each individually a Guarantor and collectively, Guarantors).
W
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T
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S
S
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H
:
WHEREAS, Agent, Co-Collateral Agents, 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 October 20, 2009, by and among Agent, Co-Collateral Agents,
Lenders, Borrowers and Guarantors (as the same now exists and is amended and supplemented pursuant
hereto and may hereafter be further amended, modified, supplemented, extended, renewed, restated or
replaced, the Loan Agreement) and the other Financing Agreements;
WHEREAS, Borrowers and Guarantors desire to amend certain provisions of the Loan Agreement as
set forth herein, and Agent and Lenders are willing to agree to such amendments on the terms and
subject to the conditions set forth herein;
WHEREAS, by this Amendment No. 1, Agent, Lenders, Borrowers and Guarantors desire and intend
to evidence such amendments;
NOW THEREFORE, in consideration of the foregoing and 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.
Definitions
.
(a)
Additional Definition
. As used herein, the term Amendment No. 1 shall mean
Amendment No. 1 to Loan and Security Agreement, dated December 3,
2010, by and among Agent,
Co-Collateral Agents, Lenders, Borrowers and Guarantors, as the same now exists or may hereafter be
amended, modified, supplemented, extended, renewed, restated or replaced,
and the Loan Agreement and the other Financing Agreements shall be deemed and are hereby
amended to include, in addition and not in limitation, such definition.
(b)
Amendment to Definitions
. All references to each of the following terms herein
and in the Loan Agreement or any of the other Financing Agreements shall be deemed and each such
reference is hereby amended to mean the following:
(i) Applicable Margin shall mean, with respect to Base Rate Loans and
Eurodollar Rate Loans, the applicable percentage (on a per annum basis) set forth
below based on the Quarterly Average Excess Availability for the immediately
preceding three (3) month period.
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Applicable
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Applicable
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Quarterly Average Excess
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Eurodollar
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Base Rate
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Tier
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Availability
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Rate Margin
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Margin
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1
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Equal to or greater than $60,000,000
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2.50
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%
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1.50
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%
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2
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Greater than or equal to $30,000,000
but less than $60,000,000
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2.75
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%
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1.75
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%
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3
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Less than $30,000,000
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3.00
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%
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2.00
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%
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provided
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that
, (A) the Applicable Margin shall be calculated
and established once each three (3) month period and shall remain in effect until
adjusted for the next three (3) month period and (B) each adjustment of the
Applicable Margin shall be effective as of the first day of a calendar month based
on the Quarterly Average Excess Availability for the immediately preceding three (3)
month period;
provided
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that
, in the event that a Borrowing Base
Certificate is not delivered when required under the terms hereof, for the period
from the date upon which such Borrowing Base Certificate was required to be
delivered until the date upon which it actually is delivered, the Applicable Margin
shall be two (2.00%) percent per annum, in the case of Base Rate Loans and three
(3.00%) percent per annum, in the case of Eurodollar Rate Loans (it being understood
that the foregoing shall not limit the rights of Agent and Lenders set forth in
Section 12). In addition, at all times that an Event of Default exists or has
occurred and is continuing, the Applicable Margin shall not decrease from that
previously in effect as a result of the delivery of a Borrowing Base Certificate.
In the event that at any time within six (6) months after the end of a three (3)
month period the Quarterly Average Excess Availability for such three (3) month
period used for the determination of the Applicable Margin was more or less than the
actual amount of the Quarterly Average Excess Availability for such three (3) month
period as a result of the inaccuracy of information provided by or on behalf of
Borrowers to Agent for the calculation of Excess Availability, the Applicable Margin
for such prior three (3) month period shall be adjusted to the applicable percentage
based on such actual Quarterly Average Excess Availability and any additional
interest for the applicable period as a result of such recalculation shall
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be promptly paid to Agent or any reduction in interest for the applicable
periods as a result of such recalculation shall be given as a credit to Borrowers to
reduce the then outstanding Loans, as the case may be. The foregoing shall not be
construed to limit the rights of Agent and Lenders with respect to the amount of
interest payable after a Default or Event of Default whether based on such
recalculated percentage or otherwise.
(c)
Interpretation
. For purposes of this Amendment No. 1, all terms used herein which
are not otherwise defined herein, including but not limited to, those terms used in the recitals
hereto, shall have the respective meanings assigned thereto in the Loan Agreement as amended by
this Amendment No. 1.
2.
Unused Line Fee
. Section 3.2(a) of the Loan Agreement is hereby deleted in its
entirety and replaced with the following:
(a) Borrowers shall pay to Agent, for the account of Lenders, monthly an
unused line fee at a rate equal to one-half (.50%) percent (on a per annum basis)
calculated upon the amount by which the Maximum Credit exceeds the average daily
principal balance of the outstanding Revolving Loans and Letter of Credit
Obligations during the immediately preceding month (or part thereof) so long as any
Obligations are outstanding and the Commitments hereunder have not been terminated.
If the Maximum Credit shall change during the immediately preceding month (or part
thereof), an average daily Maximum Credit shall be used for the purposes of
calculating such fees for such period. Such fees shall be payable on the first
Business Day of each month in arrears, beginning with the first full calendar month
that commences following the date hereof (and prorated, if the Closing Date is not
the end of a calendar month, for the portion of the immediately preceding month from
the Closing Date to the end thereof), and calculated based on a three hundred sixty
(360) day year and actual days elapsed.
3.
Restricted Payments
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(a) Section 10.5(k) of the Loan Agreement is hereby amended by deleting the first sentence
thereof and replacing it with the following:
(k) Parent and any of its Subsidiaries may pay cash dividends and make other
Restricted Payments (other than the cash dividends permitted pursuant to Section
10.5(m) below);
provided
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that
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(b) Section 10.5(l) of the Loan Agreement is hereby amended by deleting the first sentence
thereof and replacing it with the following:
(l) Parent and any of its Subsidiaries may pay cash dividends or other
Restricted Payments (other than the cash dividends permitted pursuant to Section
10.5(m) below);
provided
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that
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(c) Section 10.5 of the Loan Agreement is hereby amended by adding the following new
subsection (m) at the end thereof:
(m) Parent and any of its Subsidiaries may pay cash dividends or other
Restricted Payments once each calendar quarter in an aggregate amount not to exceed
$6,500,000;
provided
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that
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(i) either:
(A) as of the date of the payment of any such dividend or other
Restricted Payment and after giving effect thereto, Excess
Availability shall be not less than the greater of (1) $30,000,000 or
(2) twenty-four (24%) percent of the least of the Maximum Credit, the
Borrowing Base or the Revolving Loan Limit, on a pro forma basis
using the Excess Availability as of the date of the most recent
calculation of the Borrowing Base immediately prior to any such
dividend or other Restricted Payment; or
(B) on a pro forma basis, after giving effect to any such
dividend or other Restricted Payment (1) Excess Availability shall be
not less than the greater of (x) $25,000,000 or (y) twenty (20%)
percent of the least of the Maximum Credit, the Borrowing Base or the
Revolving Loan Limit, using the Excess Availability as of the date of
the most recent calculation of the Borrowing Base immediately prior
to any such dividend or other Restricted Payment and (2) the
Consolidated Fixed Charge Coverage Ratio for Parent and its
Subsidiaries for the immediately preceding twelve (12) consecutive
month period ending on the last day of the fiscal month prior to the
date of the payment thereof for which Agent has received financial
statements shall be equal to or greater than 1.00 to 1.00;
provided
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that
, for purposes of determining the
Consolidated Fixed Charge Coverage Ratio under this Section 10.5(m)
only, Fixed Charges shall include all prepayments of Indebtedness of
Parent and its Subsidiaries under clauses (a), (b), or (c) of the
definition of the term Indebtedness made in such period; and
(ii) as of the date of any such dividend or other Restricted Payment
and after giving effect thereto, no Event of Default shall exist or have
occurred and be continuing; and
(iii) Agent shall have received a certificate of a Responsible Officer
of Parent certifying on behalf of Parent to Agent and Lenders that such
dividend complies with the terms of this clause.
4.
Amendment Fee
. In consideration of the amendments set forth herein, Borrowers
shall on the date that the conditions set forth in Section 6 hereof are satisfied and this
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Amendment
No. 1 is effective, pay to Agent, for the account of Lenders, or Agent, at its
option, may charge the loan account of Borrowers maintained by Agent, an amendment fee in the
amount of $25,000, which fee is fully earned and payable as of such date and shall constitute part
of the Obligations.
5.
Representations and Warranties
. Borrowers and Guarantors, jointly and severally,
represent and warrant with and to Agent and Lenders as follows, which representations and
warranties shall survive the execution and delivery hereof, 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 Revolving Loans and providing
Letters of Credit to Borrowers:
(a) no Default or Event of Default exists or has occurred and is continuing as of the date of
this Amendment No. 1;
(b) this Amendment No. 1 has been duly authorized, executed and delivered by all necessary
corporate or other organizational action on the part of each Borrower and Guarantor which is a
party hereto and, if necessary, their respective equity holders and this Amendment No. 1
constitutes a legal, valid and binding obligation of each of the Borrowers and Guarantors,
enforceable against them in accordance with their terms, except as enforceability is limited by
bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally
the enforcement of creditors rights and except to the extent that availability of the remedy of
specific performance or injunctive relief is subject to the discretion of the court before which
any proceeding therefor may be brought;
(c) the execution, delivery and performance of this Amendment No. 1 (i) are all within each
Borrowers and Guarantors corporate, limited partnership or limited liability company powers, as
the case may be and (ii) do not violate (A) law or (B) the terms of the respective Borrowers or
Guarantors certificate or articles of incorporation or formation, by-laws, limited partnership
agreement, operating agreement, or other organizational documentation, or (C) any indenture or, in
any material respect, any material agreement or material undertaking to which any Borrower or
Guarantor is a party or by which any Borrower or Guarantor or its property are bound; and
(d) all of the representations and warranties set forth in the Loan Agreement and the other
Financing Agreements, each as amended hereby, are true and correct in all material respects on and
as of the date hereof, as if made on the date hereof, except to the extent any such representation
or warranty is made as of a specified date, in which case such representation or warranty shall
have been true and correct as of such date.
6.
Conditions Precedent
. The 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 No. 1, duly authorized, executed
and delivered by Borrowers and Guarantors;
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(b) Agent shall have received the amendment fee referred to in Section 4 hereof;
(c) Agent shall have received the consent or authorization from such Lenders as are required
for the amendments provided for herein to execute this Amendment No. 1on behalf of the Lenders; and
(d) No Default or Event of Default shall exist or have occurred and be continuing (after
giving effect to the provisions of this Amendment No. 1).
7.
Effect of this Amendment
. Except as expressly set forth herein, no other
amendments, changes or modifications 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 and Borrowers and Guarantors shall
not be entitled to any other or further amendment by virtue of the provisions of this Amendment No.
1 or with respect to the subject matter of this Amendment No. 1. To the extent of conflict between
the terms of this Amendment No. 1 and the other Financing Agreements, the terms of this Amendment
No. 1 shall control. The Loan Agreement and this Amendment No. 1 shall be read and construed as
one agreement. On and after the date that all conditions set forth in Section 6, above, shall have
been satisfied and this Amendment No. 1 has become effective, each reference in the Loan Agreement
to this Agreement, hereunder, hereof, herein or words of like import, and each reference in
the other Financing Agreements to the Loan Agreement, shall mean and be a reference to the Loan
Agreement as amended hereby.
8.
Governing Law
. The validity, interpretation and enforcement of this Amendment No.
1 and any dispute arising out of the relationship between the parties hereto whether in contract,
tort, equity or otherwise, shall be governed by 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.
9.
Binding Effect
. This Amendment No. 1 shall be binding upon and inure to the
benefit of each of the parties hereto and their respective successors and assigns.
10.
Further Assurances
. Borrowers and Guarantors shall execute and deliver such
additional documents and take such additional action as may be reasonably requested by Agent to
effectuate the provisions and purposes of this Amendment No. 1.
11.
Entire Agreement
. This Amendment No. 1 represents the entire agreement and
understanding concerning the subject matter hereof among the parties hereto, and supersedes all
other prior agreements, understandings, negotiations and discussions, representations, warranties,
commitments, proposals, offers and contracts concerning the subject matter hereof, whether oral or
written.
12.
Headings
. The headings listed herein are for convenience only and do not
constitute matters to be construed in interpreting this Amendment No. 1.
13.
Counterparts
. This Amendment No. 1 may be executed in any number of
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counterparts, each of which shall be an original, but all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of this Amendment No. 1
by telefacsimile or other electronic method of transmission shall have the same force and effect as
delivery of an original executed counterpart of this Amendment No. 1. Any party delivering an
executed counterpart of this Amendment No. 1 by telefacsimile or other electronic method of
transmission shall also deliver an original executed counterpart of this Amendment No. 1, but the
failure to do so shall not affect the validity, enforceability, and binding effect of this
Amendment No. 1.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be duly executed
and delivered by their authorized officers as of the day and year first above written.
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WELLS FARGO CAPITAL FINANCE, LLC, as Administrative and Co-Collateral Agent and a Lender
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By:
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Name:
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Title:
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BANK OF AMERICA, N.A., as Co-Collateral Agent and a Lender
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By:
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Name:
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Title:
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GENERAL ELECTRIC CAPITAL CORPORATION, as Co-Collateral Agent and a Lender
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By:
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Name:
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Title:
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[SIGNATURES CONTINUED ON NEXT PAGE]
[SIGNATURES CONTINUED FROM PREVIOUS PAGE]
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BORROWERS
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NCI GROUP, INC
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By:
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Name:
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Title:
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ROBERTSON-CECO II CORPORATION
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By:
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Name:
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Title:
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GUARANTORS
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NCI BUILDING SYSTEMS, INC.
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By:
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Name:
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Title:
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STEELBUILDING.COM INC.
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By:
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Name:
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Title:
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