Exhibit 10.4

 

FIRST AMENDMENT TO RESTRUCTURING AGREEMENT

 

This FIRST AMENDMENT, dated September 10, 2004 (the “Amendment”), to the
Restructuring Agreement (the “Agreement”), dated August 24, 2004, by and among
the parties specified therein is executed by (i) Applied Extrusion Technologies,
Inc., a Delaware corporation (“AET”), Applied Extrusion Technologies, Inc.
(Canada), a Delaware corporation (“AET Canada” and together, with AET, the
“Company”) and Applied Extrusion Technologies Limited (“AET/UK”), and (ii)
Barclays Bank PLC, DDJ Capital Management, LLC (as investment manger or adviser
acting on behalf of certain funds and accounts it manages or advises), Post
Advisory Group, LLC, Silver Point Capital, L.P., TCW Shared Opportunity Fund
III, L.P., TCW Shared Opportunity Fund IV, L.P., TCW Shared Opportunity Fund
IVB, L.P. and TCW/PCG Special Situation Partners, LLC (together the
“Participating Holders”).

 

WHEREAS, the Company, AET/UK and each of the Participating Holders have
determined that it is in each of their best interests to, as of the date hereof,
amend and restate Section 8(b)(xvii) of the Restructuring Agreement in its
entirety in the form specified below.

 

NOW THEREFORE, in consideration of the promises and the mutual covenants and
agreements set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Company, AET/UK and
each of the Participating Holders hereby agree as follows:

 

1.             Amendment & Restatement of Section 8(b)(xvii) of the
Restructuring Agreement.  Section 8(b)(xvii) is amended and restated in its
entirety to read as follows:

 

“(xvii)  If a retirement and release agreement consistent with the terms set
forth in that certain side letter of even date herewith by and among the
Participating Holders and Amin J. Khoury (the “Retirement Agreement”) has not
been executed on or before September 17, 2004.”

 

2.             Entire Agreement.  This Amendment constitutes the entire
agreement among the parties hereto with respect to the subject matter hereof and
supersedes all other prior negotiations, agreements and understandings, both
written and oral, among the parties hereto with respect to the subject matter
hereof.

 

3.             Other Terms & Conditions.  Each of the other provisions, terms
and conditions of the Restructuring Agreement are deemed to have been
incorporated by reference herein and remain in full force and effect without
amendment, alteration or any other modification notwithstanding anything to the
contrary herein.

 

[Remainder of Page Left Intentionally Blank]

 

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IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to be
executed and delivered by its duly authorized officer as of the date first above
written.

 

 

APPLIED EXTRUSION TECHNOLOGIES, INC.

 

 

 

 

 

 

 

By:

/s/ David N. Terhune

 

 

 

Name: David N. Terhune

 

 

Title: President

 

 

 

 

 

 

 

APPLIED EXTRUSION TECHNOLOGIES (CANADA), INC.

 

 

 

 

 

 

 

By:

/s/ David N. Terhune

 

 

 

Name: David N. Terhune

 

 

Title: President

 

 

 

 

 

 

 

APPLIED EXTRUSION TECHNOLOGIES LIMITED

 

 

 

 

 

 

 

By:

/s/ David N. Terhune

 

 

 

Name: David N. Terhune

 

 

Title: President

 

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IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to be
executed and delivered by its duly authorized officer as of the date first above
written.

 

 

Barclays Bank PLC

 

 

 

 

 

 

 

By:

/s/ Steven J. Landzberg

 

 

 

Name: Steven J. Landzberg

 

 

Title: Director

 

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IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to be
executed and delivered by its duly authorized officer as of the date first above
written.

 

 

DDJ Capital Management, LLC, as investment manager or adviser acting on behalf
of certain funds and accounts it manages or advises.

 

 

 

 

 

 

 

By:

/s/ David J. Breazzano

 

 

 

Name: David J. Breazzano

 

 

Title: Member

 

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IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to be
executed and delivered by its duly authorized officer as of the date first above
written.

 

 

 

Post Advisory Group, LLC

 

 

 

 

 

 

 

By:

/s/ Lawrence A. Post

 

 

 

Name: Lawrence A. Post

 

 

Title: Chief Investment Officer

 

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IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to be
executed and delivered by its duly authorized officer as of the date first above
written.

 

 

Silver Point Capital L.P.

 

 

 

 

 

 

 

By:

/s/ Edward Mule

 

 

 

Name: Edward Mule

 

 

Title:

 

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IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to be
executed and delivered by its duly authorized officer as of the date first above
written.

 

 

TCW Shared Opportunity Fund III, L.P.

TCW Shared Opportunity Fund IV, L.P.

 

 

Face Amount of Notes Held: (set forth in accompanying memorandum)

Face Amount of Notes Held: (set forth in accompanying memorandum)

 

 

By: TCW Asset Management Company, its Investment Adviser

By: TCW Asset Management Company, its Investment Adviser

 

 

By:

/s/ Gary Hobart

 

By:

/s/ Gary Hobart

 

Name: Gary Hobart

Name: Gary Hobart

 

 

By:

/s/ C. Shawn Bookin

 

By:

/s/ C. Shawn Bookin

 

Name: C. Shawn Bookin

Name: C. Shawn Bookin

 

 

TCW Shared Opportunity Fund IVB, L.P.

TCW/PCG Special Situation Partners, LLC

 

 

Face Amount of Notes Held: (set forth in accompanying memorandum)

Face Amount of Notes Held: (set forth in accompanying memorandum)

 

 

By: TCW Asset Management Company, its Investment Adviser

By: TCW Asset Management Company, its Investment Adviser

 

 

By:

/s/ Gary Hobart

 

By:

/s/ Gary Hobart

 

Name: Gary Hobart

Name: Gary Hobart

 

 

By:

/s/ C. Shawn Bookin

 

By:

/s/ C. Shawn Bookin

 

Name: C. Shawn Bookin

Name: C. Shawn Bookin

 

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IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to be
executed and delivered by its duly authorized officer as of the date first above
written.

 

 

 

Xerion Partners I LLC

 

 

 

 

 

 

 

By:

/s/ Daniel J. Arbess

 

 

 

Name: Daniel J. Arbess

 

 

Title:

 

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