EXHIBIT
10.1
 
CONSENT AND AMENDMENT NO. 7 TO CREDIT AGREEMENT

THIS CONSENT AND AMENDMENT NO. 7 TO CREDIT AGREEMENT AND WAIVER (this
“Amendment”), dated as of March 20, 2006, is made and entered into on the terms
and conditions hereinafter set forth, by and among NN, INC., a Delaware
corporation (“Domestic Borrower”), NN EUROPE ApS, a Denmark limited liability
company (successor by name change to NN Euroball ApS) (“Euro Borrower”; Domestic
Borrower and Euro Borrower are sometimes hereinafter individually and
collectively referred to as the “Borrower”), all subsidiaries (except for the
Euro Borrower) of the Domestic Borrower who are now or hereafter become parties
to the Credit Agreement, as hereinafter defined (the “Domestic Guarantors”), the
several lenders who are now or hereafter become parties to the Credit Agreement
(the “Lenders”), AMSOUTH BANK, an Alabama state bank, individually and as
administrative agent for the Lenders (in such capacity, the “Administrative
Agent”), and SUNTRUST BANK, as documentation agent and euro loan agent for the
Lenders (in such capacity, the “Euro Loan Agent”).

RECITALS:

1. Pursuant to that certain Credit Agreement dated as of May 1, 2003, by and
among the Borrower, the Domestic Guarantors, the Administrative Agent, the
Lenders and the Euro Loan Agent, as amended by that certain Amendment No. 1 to
Credit Agreement dated August 1, 2003, that certain Amendment No. 2 to Credit
Agreement dated March 12, 2004, that certain Amendment No. 3 to Credit Agreement
and Waiver dated March 31, 2004, that certain Amendment No. 4 to Credit
Agreement dated November 12, 2004, that certain Amendment No. 5 to Credit
Agreement dated March 30, 2005 and that certain Consent and Amendment No. 6
dated October 3, 2005 (as the same heretofore may have been and/or hereafter may
be further amended, restated, supplemented, extended, renewed, replaced or
otherwise modified from time to time, the “Credit Agreement”), the Lenders have
agreed to make the Loans available to the Borrower, all as more specifically
described in the Credit Agreement. Capitalized terms used but not otherwise
defined in this Agreement have the same meanings as in the Credit Agreement.

2. The parties hereto desire to further amend the Credit Agreement in certain
respects, as more particularly hereinafter set forth.

AGREEMENTS:

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

1.  Investments. Clause (h) of Section 9.4 of the Credit Agreement is hereby
amended by deleting the existing clause (h) and substituting the following
therefore

(h) additional advances to, and other Investments in Non-Guarantor Subsidiaries
in an aggregate outstanding amount not to exceed $6,000,000 at any time;

--------------------------------------------------------------------------------

2.  Schedule 7.1. Schedule 7.1 to the Credit Agreement, Capitalization and
Jurisdictions of Incorporation and Foreign Qualification, is hereby modified and
amended to add the following Non-Guarantor Subsidiary to Schedule 7.1:

Entity
No. of Shares Outstanding / Ownership
Capitalization as of 12/01/05
Jurisdiction of Incorporation
Jurisdiction of Foreign Qualification
NN Precision Bearing Products C. LTD 4
None
$ 4,000,000
China
None

4. NN Precision Bearing Products C. LTD is a Non-Guarantor Subsidiary.

3.  Consent to Sale of Real Property and Improvements and Application of
Proceeds. Borrower has indicated its desire to sell certain outparcel of real
property and improvements owned by NN Netherlands B.V. and located in
Veenendall, The Netherlands (the "Excess Property"). Borrower represents and
warrants to Lenders that the Excess Property is no longer used or useful in the
business of Borrower and its Subsidiaries. Borrower expects that the proceeds of
the sale of the Excess Property will exceed the limits for sales of assets set
forth in subsection 9.3(d) of the Credit Agreement and further has requested
that the net proceeds of the sale of the Excess Property be applied to the Loans
in a manner other than as provided by the provisions of subsection 3.1.3(b) of
the Credit Agreement. Lenders hereby consent to the sale of the Excess Property
in the Fiscal Year ending December 31, 2005, provided, however, the aggregate
Dollar or Dollar Equivalent amount, as applicable, of all sales of assets of the
type described subsection 9.3(d) in the Fiscal Year ending December 31, 2005
(including the sale of the Excess Property) shall not exceed $4,250,000, and all
such sales shall be applied against the $10,000,000 limit in subsection 9.3(d)
for sales of assets over the term of the Facilities.

4.  Effectiveness. This Amendment shall become effective when the Administrative
Agent shall have received counterparts or signature pages executed by the
Borrower, the Domestic Guarantors, the Administrative Agent and the Lenders.

5.  Representations and Warranties of the Borrower and the Guarantors. As an
inducement to the Administrative Agent, the Euro Loan Agent and the Lenders to
enter into this Amendment, the Borrower and the Domestic Guarantors hereby
represent and warrant to the Administrative Agent, the Euro Loan Agent and the
Lenders that, on and as of the date hereof:

(a) the representations and warranties contained in the Credit Agreement and the
other Loan Documents are true and correct, except for (1) representations and
warranties that expressly relate to an earlier date, which remain true and
correct as of said earlier date, and (2) representations and warranties that
have become untrue or incorrect solely because of changes permitted by the terms
of the Credit Agreement and the other Loan Documents, and

(b) no Default or Event of Default has occurred and is continuing.

2

--------------------------------------------------------------------------------

6.  Effect of Amendment; Continuing Effectiveness of Credit Agreement and Loan
Documents.

(a)  Neither this Amendment nor any other indulgences that may have been granted
to the Borrower or any of the Domestic Guarantors by the Administrative Agent,
the Euro Loan Agent or any Lender shall constitute a course of dealing or
otherwise obligate the Administrative Agent, the Euro Loan Agent or any Lender
to modify, expand or extend the agreements contained herein, to agree to any
other amendments to the Credit Agreement or to grant any consent to, waiver of
or indulgence with respect to any other noncompliance with any provision of the
Loan Documents.

(b)  This Amendment shall constitute a Loan Document for all purposes of the
Credit Agreement and the other Loan Documents. Any noncompliance by the Borrower
or any Domestic Guarantor with any of the covenants, terms, conditions or
provisions of this Amendment shall constitute an Event of Default. Except to the
extent amended hereby, the Credit Agreement, the other Loan Documents and all
terms, conditions and provisions thereof shall continue in full force and effect
in all respects.

7.  Counterparts. This Amendment may be executed in multiple counterparts or
copies, each of which shall be deemed an original hereof for all purposes. One
or more counterparts or copies of this Amendment may be executed by one or more
of the parties hereto, and some different counterparts or copies executed by one
or more of the other parties. Each counterpart or copy hereof executed by any
party hereto shall be binding upon the party executing same even though other
parties may execute one or more different counterparts or copies, and all
counterparts or copies hereof so executed shall constitute but one and the same
agreement. Each party hereto, by execution of one or more counterparts or copies
hereof, expressly authorizes and directs any other party hereto to detach the
signature pages and any corresponding acknowledgment, attestation, witness or
similar pages relating thereto from any such counterpart or copy hereof executed
by the authorizing party and affix same to one or more other identical
counterparts or copies hereof so that upon execution of multiple counterparts or
copies hereof by all parties hereto, there shall be one or more counterparts or
copies hereof to which is(are) attached signature pages containing signatures of
all parties hereto and any corresponding acknowledgment, attestation, witness or
similar pages relating thereto.

8.  Miscellaneous.

(a)  This Amendment shall be governed by, construed and enforced in accordance
with the laws of the State of Tennessee, without reference to the conflicts or
choice of law principles thereof.

(b)  The headings in this Amendment and the usage herein of defined terms are
for convenience of reference only, and shall not be construed as amplifying,
limiting or otherwise affecting the substantive provisions hereof.

3

--------------------------------------------------------------------------------

(c)  Any reference herein to any instrument, document or agreement, by whatever
terminology used, shall be deemed to include any and all amendments,
modifications, supplements, extensions, renewals, substitutions and/or
replacements thereof as the context may require.

(d)  When used herein, (1) the singular shall include the plural, and vice
versa, and the use of the masculine, feminine or neuter gender shall include all
other genders, as appropriate, (2) “include”, “includes” and “including” shall
be deemed to be followed by “without limitation” regardless of whether such
words or words of like import in fact follow same, and (3) unless the context
clearly indicates otherwise, the disjunctive “or” shall include the conjunctive
“and.”

[Signatures Begin Next Page]

4

--------------------------------------------------------------------------------

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

       BORROWER:
 NN, INC.,
a Delaware corporation
   
    By:   /s/ William C. Kelly, Jr.  

--------------------------------------------------------------------------------

Name:  William C. Kelly, Jr.  
Title:  Secretary, Treasurer and Chief Administrative
           Officer 

                                          

       
NN EUROPE ApS, a Denmark limited liability company 
 (successor by name change to NN Euroball ApS
 
   
   
  By:   /s/ William C. Kelly, Jr.  

--------------------------------------------------------------------------------

Name:  William C. Kelly, Jr.  
Title:  Secretary, Treasurer and Chief Administrative
           Officer 

 

       DOMESTIC GUARANTORS:
INDUSTRIAL MOLDING GP, LLC,
a Delaware limited liability company
 
   
   
    By:   /s/ Roderick Baty  

--------------------------------------------------------------------------------

Name:  Roderick Baty   Title:  Manager 

 
     

       
INDUSTRIAL MOLDING LP, LLC,
a Tennessee limited liability company
 
   
   
    By:   /s/ William C. Kelly, Jr.  

--------------------------------------------------------------------------------

Name:  William C. Kelly, Jr.   Title:  Manager 

[Signatures Continued Next Page]
5

--------------------------------------------------------------------------------

 
 

        INDUSTRIAL MOLDING LP, LLC
a Tennessee limited liability company  
 
 
By:
 
Industrial Molding GP, LLC, a Delaware limited
liability company, its general partner
 
  By:   /s/ Roderick Baty  

--------------------------------------------------------------------------------

Name:  Roderick Baty   Title:  Manager 

        DELTA RUBBER COMPANY,
a Connecticut corporation
 
   
 
  
  By:   /s/ Paul N. Fortier  

--------------------------------------------------------------------------------

Name:  Paul Fortier   Title:  Vice President 

                 
 

        KUGELFERTIGUNG ELTMANN GmbH,
a German Company
 
   
 
  
  By:   /s/ William C. Kelly, Jr.  

--------------------------------------------------------------------------------

Name:  William C. Kelly, Jr.   Title:  Director 

                           

         
   
   
  By:   /s/ Wolfgang Bartel  

--------------------------------------------------------------------------------

Name:  Wolfgang Bartel   Title:  Director 

 
 

       
NN NETHERLANDS B.V.,
a Dutch company
 
   
   
    By:   /s/ William C. Kelly, Jr.  

--------------------------------------------------------------------------------

Name:  William C. Kelly, Jr.   Title:  Director 

                                              
      

[Signatures Continued Next Page]

 

6

--------------------------------------------------------------------------------

 

       
NN EUROBALL IRELAND LIMITED,
an Irish company
 
   
   
  By:   /s/ Roderick Baty   

--------------------------------------------------------------------------------

Name:  Roderick Baty   Title:  Director 

 

       
NN HOLDINGS, B.V.,
a Dutch company
 
   
   
  By:   /s/ William C. Kelly, Jr.  

--------------------------------------------------------------------------------

Name:  William C. Kelly, Jr.  
Title:  Director of NN Netherlands B.V., the Director
           of NN Holdings B.V. 

 
 

       
NN SLOVAKIA, s.r.o.
 
   
   
  By:   /s/ William C. Kelly, Jr.  

--------------------------------------------------------------------------------

Name: William C. Kelly, Jr.   Title:  Director 

       

       LENDERS:     AMSOUTH BANK, as a Lender  
   
   
  By:   /s/ Robert T. Page  

--------------------------------------------------------------------------------

Name:  Robert T. Page   Title:  V.P. 

        FIRST TENNESSEE BANK NATIONAL ASSOCIATION, as a Lender  
   
   
  By:   /s/ Vincent K. Hickam  

--------------------------------------------------------------------------------

Name:  Vincent K. Hickam   Title:  Executive Vice President 

   
 

[Signatures Continued Next Page]

 

7

--------------------------------------------------------------------------------

       
REGIONS BANK (successor to UNION PLANTERS
BANK, NATIONAL ASSOCIATION), as a Lender
       By:   /s/ Carol S. Geraghty  

--------------------------------------------------------------------------------

  Title:  Vice President 

        INTEGRA BANK, N.A., as a Lender  
   
   
  By:   /s/ Jeffrey D. Jackson  

--------------------------------------------------------------------------------

Name:  Jeffrey D. Jackson   Title:  Senior Vice President 

 

        SUNTRUST BANK, as a Lender and Euro Loan Agent  
   
   
  By:   /s/ Robert C. Chadwell  

--------------------------------------------------------------------------------

Name: Robert C. Chadwell   Title:  Vice President 

 

8

--------------------------------------------------------------------------------