EX-10.84.2 2 ex10842form8k070704.txt AMENDMENT NO. 1 CREDIT AGREEMENT Exhibit 10.84.2 EXECUTION COPY AMENDMENT NO. 1 Dated as of June 23, 2004 to CREDIT AGREEMENT Dated as of March 31, 2004 THIS AMENDMENT NO. 1 ("Amendment") is made as of June 23, 2004 by and among Headwaters Incorporated (the "Borrower"), the financial institutions listed on the signature pages hereof (the "Lenders") and Bank One, NA (Main Office Chicago), as Administrative Agent (the "Agent"), under that certain Credit Agreement dated as of March 31, 2004 by and among the Borrower, the Lenders and the Agent (the "Credit Agreement"). Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Credit Agreement. WHEREAS, the Borrower has requested that the Aggregate Revolving Loan Commitment be increased from $50,000,000 to $75,000,000; WHEREAS, Bank of America, N.A. (the "New Lender") has agreed to provide, subject to the terms and conditions hereof, a new Revolving Loan Commitment in the aggregate amount of $25,000,000; WHEREAS, the Borrower, the Lenders party hereto, the New Lender and the Agent have agreed to amend the Credit Agreement on the terms and conditions set forth herein; NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrowers, the Lenders party hereto, the New Lender and the Agent have agreed to the following amendments to the Credit Agreement. 1. Amendments to Credit Agreement. Effective as of June 23, 2004 (the "Effective Date") but subject to the satisfaction of the conditions precedent set forth in Section 2 below, (a) the Credit Agreement is amended to increase the Aggregate Revolving Loan Commitment to $75,000,000, (b) the New Lender is deemed to be a Lender for all purposes under the Credit Agreement and (c) the Commitment Schedule is amended and restated in its entirety to read as set forth on Annex A hereto. The Borrower hereby agrees to compensate each Lender for all losses, expenses and liabilities incurred by such Lender in connection with the sale and assignment of any Eurodollar Loans and the reallocation described in Section 2(a) below, in each case on the terms and in the manner set forth in Section 3.4 of the Credit Agreement. 2. Conditions of Effectiveness. The effectiveness of this Amendment is subject to the conditions precedent that (a) the Agent shall have administered the reallocation of the Aggregate Outstanding Revolving Credit Exposure on the Effective Date ratably among the Lenders after giving effect to the increase in the Aggregate Revolving Loan Commitment pursuant hereto and (b) the Agent shall have received (i) counterparts of this Amendment duly executed by the Borrower, the Required Lenders, the New Lender and the Agent and the Consent and Reaffirmation attached hereto duly executed by the Guarantors, (ii) copies of resolutions or actions of any other body authorizing the execution of this Amendment by each Credit Party, (iii) favorable written opinions of counsels to the Credit Parties, in form and substance reasonably acceptable to the Agent and its counsel and (iv) such other instruments and documents as are reasonably requested by the Agent. 3. Representations and Warranties of the Borrower. The Borrower hereby represents and warrants as follows: (a) This Amendment and the Credit Agreement as amended hereby constitute legal, valid and binding obligations of the Borrower and are enforceable against the Borrower in accordance with their terms, except as enforceability may be limited by (i) bankruptcy, insolvency, fraudulent conveyances, reorganization or similar laws relating to or affecting the enforcement of creditors' rights generally; (ii) general equitable principles (whether considered in a proceeding in equity or at law); and (iii) requirements of reasonableness, good faith and fair dealing. (b) As of the date hereof and giving effect to the terms of this Amendment, (i) there exists no Default or Unmatured Default and (ii) the representations and warranties contained in Article V of the Credit Agreement, as amended hereby, are true and correct, except for representations and warranties made with reference solely to an earlier date. 4. Reference to and Effect on the Credit Agreement. (a) Upon the effectiveness hereof, each reference to the Credit Agreement in the Credit Agreement or any other Loan Document shall mean and be a reference to the Credit Agreement as amended hereby. (b) Except as specifically amended above, the Credit Agreement and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect and are hereby ratified and confirmed. (c) The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Agent or the Lenders, nor constitute a waiver of any provision of the Credit Agreement or any other documents, instruments and agreements executed and/or delivered in connection therewith. 5. Governing Law. This Amendment shall be governed by and construed in accordance with the internal laws of the State of New York, but giving effect to federal laws applicable to national banks. 6. Headings. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose. 2 7. Counterparts. This Amendment may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. [Signature Pages Follow] 3 IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above written. HEADWATERS INCORPORATED, as the Borrower By: /s/ Steven G. Stewart --------------------------------- Name: Steven G. Stewart Title: CFO BANK ONE, NA (MAIN OFFICE CHICAGO), as Administrative Agent, as Swing Line Lender, as LC Issuer and as a Lender By: /s/ Tony C. Nielsen --------------------------------- Name: Tony C. Nielsen Title: First V.P. WELLS FARGO BANK, NA, as a Lender By: /s/ Troy S. Akagi --------------------------------- Name: Troy S. Akagi Title: Vice President ZIONS FIRST NATIONAL BANK, as a Lender By: /s/ Tracy Groll --------------------------------- Name: Tracy Groll Title: Vice President GUARANTY BANK, as a Lender By: /s/ Scott L. Brewer --------------------------------- Name: Scott L. Brewer Title: Senior V. P. 4 BANK OF AMERICA, N.A., as the New Lender By: /s/ David R. Barney --------------------------------- Name: David R. Barney Title: Senior Vice President 5