Exhibit 10.1

EXECUTION VERSION

AMENDMENT NO. 1

AMENDMENT NO. 1, dated as of June 28, 2012 (this “Amendment”), to the Credit and
Guaranty Agreement, dated as of May 26, 2011 (as amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”), by and among
XERIUM TECHNOLOGIES, INC., a Delaware corporation (“Xerium”), and XERIUM
TECHNOLOGIES LIMITED, a private limited company organized under the laws of
England and Wales (the “Euro Borrower”, and together with Xerium, each
individually a “Borrower” and, collectively, the “Borrowers”), certain
subsidiaries of the Borrowers, as Guarantors, the Banks from time to time party
thereto, CITIGROUP GLOBAL MARKETS INC., as Joint Lead Arranger and Joint
Bookrunner, JEFFERIES FINANCE LLC, as Joint Lead Arranger and Joint Bookrunner
and as Syndication Agent, CITIBANK, N.A., as Administrative Agent (together with
its permitted successors, in such capacity, the “Administrative Agent”) and
CITIGROUP NORTH AMERICA, INC., as Collateral Agent (together with its permitted
successors, in such capacity, the “Collateral Agent”).

W I T N E S S E T H:

WHEREAS, the Borrowers have requested that the Requisite Banks agree to certain
amendments to the Credit Agreement;

WHEREAS, the Administrative Agent and each Bank signatory hereto have agreed to
such amendments to the Credit Agreement to the extent of and subject to terms
and conditions set forth herein;

NOW, THEREFORE, in consideration of the premises and the mutual covenants and
provisions hereinafter contained, the parties hereto hereby agree as follows:

Section 1. Defined Terms. Capitalized terms used herein and not defined herein
but defined in the Credit Agreement are used herein as defined in the Credit
Agreement.

Section 2. Amendments to the Credit Agreement. As of the Amendment Effective
Date (as defined in Section 4):

(a) Section 1.1 (Definitions) is hereby amended by inserting the following
definitions in the appropriate places so as to preserve the alphabetical order
of the definitions in such section:

“Amendment No. 1” means that certain Amendment No. 1 to the Agreement, dated as
of June 28, 2012, by and among the Borrowers, certain subsidiaries of the
Borrowers, the Administrative Agent, the Collateral Agent, the Syndication
Agent, and the Requisite Banks signatory thereto.

“Amendment No. 1 Effective Date” means dated as of June 28, 2012.

“Unused Maximum Consolidated Capital Expenditure Amount” means, for any Fiscal
Year, the amount by which (a) the Maximum Consolidated Capital Expenditures for
such Fiscal Year exceeds (b) the amount of Consolidated Capital Expenditures
made or incurred in such Fiscal Year.

(b) The definition of “Applicable Margin” in Section 1.1 (Definitions) is hereby
amended by inserting the following sentence at the end of such definition:

For eighteen (18) months following the Amendment No. 1 Effective Date, the
Applicable Margin shall be increased by an additional 0.75% per annum.

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(c) The definition of “Leverage Ratio” in Section 1.1 (Definitions) is hereby
deleted in its entirety and the following is inserted in lieu thereof:

“Leverage Ratio” means, with respect to Xerium on any date, the ratio of (a) the
Debt of Xerium and its Subsidiaries as of such date to (b) the Adjusted EBITDA
of Xerium and its Subsidiaries for the period of four consecutive Fiscal
Quarters ending on such date (or if such date is not the last day of a Fiscal
Quarter of Xerium, for the period of four consecutive Fiscal Quarters most
recently ended); provided, that, for the purposes of calculating the Leverage
Ratio required to be maintained under Section 6.8(b) only and not for any
purpose for which the Leverage Ratio is applicable elsewhere in this Agreement,
an amount equal to the lesser of (x) the aggregate amount of unrestricted Cash
and Cash Equivalents in excess of $25,000,000 held by Xerium and its
Subsidiaries on such date and not subject to a perfected Lien in favor of any
Person (other than the Collateral Agent) and (y) $25,000,000 shall be subtracted
from Debt in the foregoing clause (a).

(d) The definition of “Consolidated Operational Restructuring Costs” in
Section 1.1 (Definitions) is hereby deleted in its entirety and the following is
inserted in lieu thereof:

“Consolidated Operational Restructuring Costs” means, with respect to any Person
for any period, any restructuring or related impairment costs for such Person
and its Subsidiaries resulting from the restructuring activities of such Person
and its Subsidiaries; provided, that the amount of such costs for the applicable
Fiscal Year shall not exceed an amount equal to (a) the Maximum Consolidated
Operational Restructuring Costs for such Fiscal Year plus, (b) in the case of
each Fiscal Year ended December 31, 2012 through the Fiscal Year ended
December 31, 2015 only, an amount equal to the lesser of (i) $15,000,000 and
(ii) the Unused Maximum Consolidated Capital Expenditure Amount.

(e) Section 2.15(e) (Application of Prepayments/Reductions/Scheduled Payments;
Prepayment Premium) is hereby amended in its entirety and the following is
inserted in lieu thereof:

(e) Prepayment Premium. At the time of the effectiveness of any Repricing
Transaction that (i) (A) results in any prepayment of Term Loans under
Section 2.13 or Section 2.14 or (B) is effected by any amendment of this
Agreement and (ii) is consummated prior to the date that is one year after the
Amendment No. 1 Effective Date, the Borrowers agree to pay to the Administrative
Agent, for the ratable account of each applicable Bank, a fee in an amount equal
to, (x) in the case of clause (A), a prepayment premium of 1% of the amount of
the Term Loans being prepaid and (y) in the case of clause (B), a payment equal
to 1% of the aggregate amount of the applicable Term Loans outstanding
immediately prior to such amendment. Such fees shall be due and payable upon the
date of the effectiveness of such Repricing Transaction.

(f) Section 6.8(b) (Financial Covenants) is hereby amended by deleting the rows
in the table contained therein that apply to the Fiscal Quarters ending
September 30, 2012, December 31, 2012, March 31, 2013, June 30,
2013, September 30, 2013 and December 31, 2013 and substituting the following in
lieu thereof:

 

Fiscal Quarter

   Leverage Ratio

September 30, 2012

   5.50 to 1.00

December 31, 2012

   5.50 to 1.00

March 31, 2013

   5.50 to 1.00

June 30, 2013

   5.25 to 1.00

September 30, 2013

   5.00 to 1.00

December 31, 2013

   5.00 to 1.00

 

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(g) Section 6.8(d) (Financial Covenants) is hereby amended by deleting clause
(i) in its entirety and inserting the following in lieu thereof:

(i) an amount equal to 50% of the portion of Maximum Consolidated Capital
Expenditure not expended and not used to increase Consolidated Operational
Restructuring Costs in the immediately preceding Fiscal Year (the “Roll-Over
Amount”) and

Section 3. Amendment Fee. The Borrowers agree to pay or cause to be paid to the
Administrative Agent, for the account of each Bank that executes this Amendment
by no later than 5:00pm (New York time) on June 26, 2012, a fee in an amount
equal to 0.25% of the sum of such Bank’s Term Loan and Revolving Commitment (the
“Amendment Fee”).

Section 4. Conditions Precedent to the Effectiveness of this Amendment. This
Amendment shall become effective on the date (the “Amendment Effective Date”)
when the Administrative Agent shall have received all of the following, each of
which shall be in form and substance reasonably satisfactory to the
Administrative Agent:

(a) Certain Documents. The Administrative Agent shall have received each of the
following:

(i) this Amendment, duly executed by the Borrowers, the Guarantors, the
Administrative Agent and Banks constituting the Requisite Banks; and

(ii) such additional documentation as the Administrative Agent or the Requisite
Banks may reasonably require.

(b) Payment of Fees, Costs and Expenses. The Administrative Agent shall have
received payment of all fees, including the Amendment Fee, costs and expenses of
the Administrative Agent and Banks (including, without limitation, the
reasonable fees and out-of-pocket expenses of outside counsel for the
Administrative Agent) in connection with this Amendment, or then due or overdue
under the Credit Agreement and each other Credit Document.

(c) Representations and Warranties. Each of the representations and warranties
contained in Section 5 below shall be true and correct on the date hereof and on
and as of the Amendment Effective Date as if made on such date.

(d) No Default or Event of Default. No Default or Event of Default shall have
occurred and be continuing.

 

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Section 5. Representations and Warranties. On and as of the date hereof and as
of the Amendment Effective Date, each Credit Party hereby represents and
warrants to the Banks as follows:

(a) Each of the representations and warranties contained in Section 4 of the
Credit Agreement, the other Credit Documents or in any certificate, document or
financial or other statement furnished at any time under or in connection
therewith are true and correct in all material respects on and as of the date
hereof and as of the Amendment Effective Date as if made on and as of such date,
except to the extent that such representations and warranties specifically
relate to a specific date, in which case such representations and warranties
shall be true and correct in all material respects as of such specific date
(except that, in each case, any representation and warranty that is qualified as
to “materiality”, “material adverse change” or “Material Adverse Effect” shall
be true and correct in all respects);

(b) The execution, delivery and performance by such Credit Party of this
Amendment and all other agreements and documents to which such Credit Party is a
party in connection herewith have been duly authorized by all requisite action
on the part of such Credit Party and will not violate any of the provisions of
the Organizational Documents of such Credit Party.

(c) This Amendment and all other agreements and documents executed and delivered
by such Credit Party in connection herewith have been duly executed and
delivered by such Credit Party, and each of this Amendment, the Credit Agreement
or any other Credit Document to which such Credit Party is a party, in each
case, as amended hereby or pursuant to the specific amendment with respect
thereto, constitutes the legal, valid and binding obligation of such Credit
Party, enforceable against such Credit Party in accordance with its terms,
except as the same may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the rights of creditors generally and
by general principles of equity.

(d) No Default or Event of Default has occurred and is continuing.

Section 6. Reaffirmation. The Credit Parties signatory hereto hereby reaffirm
their guaranties of the Obligations and reaffirm that the Obligations are and
continue to be secured by the security interest granted by the Credit Parties in
favor of the Administrative Agent, on behalf of itself and the Banks, under the
Pledge and Security Agreements and the other Collateral Documents and all of the
terms, conditions, provisions, agreements, requirements, promises, obligations,
duties, covenants and representations of the Credit Parties under such documents
and agreements entered into with respect to the Obligations under the Credit
Agreement are incorporated herein by reference and are hereby ratified and
affirmed in all respects by the Credit Parties. Each Credit Party acknowledges
that from and after the Amendment Effective Date all references to “Credit
Agreement” and “Obligations” in the Credit Documents shall take into account the
provisions of this Amendment and be a reference to the “Credit Agreement” and
the “Obligations” as amended hereby.

Section 7. Continuing Effect; No Other Amendments. Except as expressly set forth
in this Amendment, all of the terms and provisions of the Credit Agreement and
the other Credit Documents are and shall remain in full force and effect and the
Borrowers and the other Credit Parties shall continue to be bound by all of such
terms and provisions. The amendment provided for herein is limited to the
specific subsections of the Credit Agreement specified herein and shall not
constitute an amendment of, or an indication of the Administrative Agent’s or
the Banks’ willingness to amend or waive, any other provisions of the Credit
Agreement or the same subsections for any other date or purpose. The Amendment
shall constitute a Credit Document.

 

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Section 8. Costs and Expenses. The Borrowers agree to pay and reimburse the
Administrative Agent for all its reasonable out-of-pocket costs and expenses
incurred in connection with the development, preparation and execution and
delivery of this Amendment, and other documents prepared in connection herewith,
and the transactions contemplated hereby, including, without limitation,
reasonable fees and disbursements and other charges of outside counsel to the
Administrative Agent and the charges of IntraLinks.

Section 9. Counterparts. This Amendment may be executed by one or more of the
parties to this Amendment on any number of separate counterparts and all of such
counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of an executed signature page of this Amendment by
facsimile transmission or email, or by posting on a Platform shall be as
effective as delivery of a manually executed counterpart hereof.

Section 10. Integration. This Amendment and the other Credit Documents
incorporate all negotiations of the parties hereto with respect to the subject
matter hereof and is the final expression and agreement of the parties hereto
with respect to the subject matter hereof.

Section 11. Severability. In case any provision in this Amendment shall be
invalid, illegal or unenforceable, such provision shall be severable from the
remainder of this Amendment and the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

Section 12. Effect of Amendment. On the Amendment Effective Date, the Credit
Agreement shall be amended as provided herein. The parties hereto acknowledge
and agree that (a) this Amendment and the other Credit Documents executed and
delivered in connection herewith do not constitute a novation, or termination of
the “Obligations” under the Credit Agreement as in effect prior to the Amendment
Effective Date; (b) such “Obligations” are in all respects continuing (as
amended hereby) with only the terms thereof being modified to the extent
provided in this Amendment; and (c) the Liens and security interests as granted
under the Collateral Documents securing payment of such “Obligations” are in all
respects continuing and in full force and effect and secure the payment of the
“Obligations”.

Section 13. GOVERNING LAW. THIS AMENDMENT, AND ALL CLAIMS OR CAUSES OF ACTION
(WHETHER IN CONTRACT OR TORT OR OTHERWISE) THAT MAY BE BASED UPON, ARISE OUT OF
OR RELATE IN ANY WAY TO THIS AMENDMENT, THE EXECUTION OR PERFORMANCE OF THIS
AMENDMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO ANY PRINCIPLE OF CONFLICTS OF LAW THAT COULD REQUIRE THE APPLICATION OF ANY
OTHER LAW.

Section 14. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES
TRIAL BY JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AMENDMENT AND ANY
OTHER CREDIT DOCUMENT.

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
and delivered by their respective duly authorized officers as of the date first
above written.

 

XERIUM TECHNOLOGIES, INC. By:  

/s/ Stephen R. Light

Name:   Stephen R. Light Title:   President and Chief Executive Officer

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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XERIUM TECHNOLOGIES LIMITED By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Director

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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HUYCK LICENSCO INC. By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Secretary and Treasurer

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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ROBEC BRAZIL LLC By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Secretary

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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STOWE WOODWARD LLC By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Secretary and Treasurer

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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STOWE WOODWARD LICENSCO LLC By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Secretary and Treasurer

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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WANGNER ITELPA I LLC By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Secretary

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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WANGNER ITELPA II LLC By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Secretary

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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WEAVEXX, LLC By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Secretary and Treasurer

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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XERIUM III (US) LIMITED By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Secretary and Treasurer

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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XERIUM IV (US) LIMITED By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Secretary and Treasurer

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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XERIUM V (US) LIMITED By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Secretary and Treasurer

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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XERIUM ASIA, LLC By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Secretary and Treasurer

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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XTI LLC By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Secretary

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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XERIUM ITALIA S.P.A. By:  

/s/ Stephen R. Light

Name:   Stephen R. Light Title:   Managing Director

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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XERIUM CANADA INC. By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Secretary and Treasurer

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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HUYCK.WANGNER AUSTRIA GMBH By:  

/s/ David Pretty

Name:   David Pretty Title:   Managing Director

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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XERIUM GERMANY HOLDING GMBH By:  

/s/ Donna Meserve

Name:   Donna Meserve Title:   Managing Director

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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HUYCK.WANGNER GERMANY GMBH By:  

/s/ Donna Meserve

Name:   Donna Meserve Title:   Managing Director

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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ROBEC WALZEN GMBH By:  

/s/ Donna Meserve

Name:   Donna Meserve Title:   Managing Director

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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STOWE WOODWARD AKTIENGESELLSCHAFT By:  

/s/ John Badrinas Ardevol

Name:   John Badrinas Ardevol Title:   Managing Director

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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WANGNER ITELPA PARTICIPAÇÕES LTDA. By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Attorney-in-fact

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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XERIUM TECHNOLOGIES BRASIL INDÚSTRIA E COMÉRCIO S.A. By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Attorney-in-fact

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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XERIUM DO BRASIL LTDA. By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Attorney-in-fact

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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XERIUM (FRANCE) SAS By:  

/s/ John Badrinas Ardevol

Name:   John Badrinas Ardevol Title:   President

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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STOWE WOODWARD FRANCE SAS By:  

/s/ John Badrinas Ardevol

Name:   John Badrinas Ardevol Title:   President

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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HUYCK.WANGNER JAPAN LIMITED By:  

/s/ Stephen R. Light

Name:   Stephen R. Light Title:   Director

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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HUYCK.WANGNER UK LIMITED By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Director

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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STOWE-WOODWARD (UK) LIMITED By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Director

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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Signed by HUYCK.WANGNER AUSTRALIA PTY LIMITED (ACN 004 624 015)

in accordance with section 127 of the

Corporations Act 2001 (Cth) by

two directors:

By:  

/s/ Thomas C. Johnson

Name:   Thomas C. Johnson Title:   Director   Signature of director By:  

/s/ Theodore D. Orban

Name:   Theodore D. Orban Title:   Director   Name of Director (please print)

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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CITIBANK, N.A., as Administrative Agent, Issuing Bank, Swing Loan Lender and as
a Bank By:  

 

  Name:   Title:

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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CITIGROUP NORTH AMERICA, INC., as Collateral Agent By:  

/s/ Paul L. Burroughs, Jr.

  Name:   Paul L. Burroughs, Jr.   Title:   Vice President

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]

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[CONSENTING BANK], as Lender By:  

 

  Name:   Title:

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]