Exhibit 10.2

* A portion of this material is confidential and has been omitted and filed
separately with the Securities and Exchange Commission

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EXECUTION VERSION

SYPRIS SOLUTIONS, INC.
 

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FOURTH AMENDMENT
TO NOTE PURCHASE AGREEMENT

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Dated as of April 1, 2009
 

$4,090,909 12.00% Senior Notes, Series A, due January 15, 2010

$15,000,001 10.20% Senior Notes, Series B, due January 15, 2010

$10,909,090 10.30% Senior Notes, Series C, due January 15, 2010
 

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SYPRIS SOLUTIONS, INC.

$4,090,909 12.00% Senior Notes, Series A, due January 15, 2010
$15,000,001 10.20% Senior Notes, Series B, due January 15, 2010
$10,909,090 10.30% Senior Notes, Series C, due January 15, 2010

As of April 1, 2009

To each of the Current Noteholders
Named in Annex 1 hereto:

Ladies and Gentlemen:

SYPRIS SOLUTIONS, INC., a Delaware corporation (together with any successors and
assigns, the “Company”), hereby agrees with each of you as follows:
 
1.
PRIOR ISSUANCE OF NOTES, ETC.

 
The Company has outstanding (i) $4,090,909 in aggregate principal amount of its
7.25% Senior Notes, Series A, due June 30, 2009 (collectively, the “Existing
Series A Notes”), (ii) $15,000,001 in aggregate principal amount of its 7.45%
Senior Notes, Series B, due June 30, 2011 (collectively, the “Existing Series B
Notes”) and (iii) $10,909,090 in aggregate principal amount of its 7.55% Senior
Notes, Series C, due June 30, 2012 (collectively, the “Existing Series C Notes”
and together with the Existing Series A Notes and the Existing Series B Notes,
collectively, the “Existing Notes”, and the Existing Notes, as amended pursuant
to this Agreement and as may be further amended, restated, modified or replaced
from time to time, together with any such notes issued in substitution therefor
pursuant to Section 13 of the Note Purchase Agreement, the “Notes”) under the
Note Purchase Agreement dated as of June 1, 2004 by and among the Company and
the purchasers named in Schedule A thereto, as amended by that certain First
Amendment to Note Purchase Agreement, dated as of August 3, 2005, that certain
Second Amendment to Note Purchase Agreement, dated as of March 13, 2006, and
that certain Third Amendment to Note Purchase Agreement dated as of April 6,
2007 (as so amended, the “Existing Note Agreement” and, as amended pursuant to
this Agreement and as may be further amended, restated or otherwise modified
from time to time, the “Note Purchase Agreement”).  The Company represents and
warrants to each of you that the register kept by the Company for the
registration and transfer of the Notes indicates that each of the Persons named
in Annex 1 hereto (collectively, the “Current Noteholders”) is currently a
holder of the aggregate principal amount of the Notes of each Series indicated
in such Annex.
 
2.
WAIVERS; AMENDMENTS.

 
The Company agrees and, subject to the satisfaction of the conditions set forth
in Section 5 of this Agreement, each of the Current Noteholders (a) waives its
rights to take any action as a consequence of any of the Specified Defaults (the
“Waivers”) and (b) agrees to the amendment of the Existing Notes and certain
provisions of the Existing Note Agreement, in each case as provided for by
Section 4 of this Agreement (the “Amendments”).

 

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3.
WARRANTIES AND REPRESENTATIONS.

 
To induce the Current Noteholders to enter into this Agreement and to agree to
the Amendments, the Company warrants and represents to you, as of the date
hereof, as follows (it being agreed, however, that nothing in this Section 3
shall affect any of the warranties and representations previously made by the
Company in or pursuant to the Existing Note Agreement, and that all of such
other warranties and representations, as well as the warranties and
representations in this Section 3, shall survive the effectiveness of the
Amendments).
 
 
3.1.
Material Adverse Change.

 
Except as disclosed in the draft of the Company’s Annual Report on Form 10-K
(the “Draft 10-K”) for the period ended December 31, 2008 (including without
limitation, the Company’s disclosures regarding the Material Adverse Effects of
recent global and national macroeconomic developments, the loss of up to 50% of
the anticipated sales volumes for Sypris Industrial Group, and the lack of
credit availability for the Company’s customers and suppliers) proposed to be
filed with the Securities and Exchange Commission, there has been no change in
the business operations, profits, financial condition, properties or business
prospects of the Company and its Subsidiaries except changes that, in the
aggregate, could not reasonably be expected to have a Material Adverse
Effect.  A true and correct copy of the Draft 10-K has been delivered to the
Current Noteholders on the date hereof.
 
 
3.2.
Full Disclosure.

 
Neither the financial statements and other certificates previously provided to
the Current Noteholders pursuant to the provisions of the Existing Note
Agreement nor the statements made in this Agreement nor the projected financial
information provided to the Current Noteholders on March 16, 2009 (the “Initial
Projections”) in connection with the proposal and negotiation of the Amendments,
taken as a whole, contain any untrue statement of a material fact or omit a
material fact necessary to make the statements contained therein and herein,
taken as a whole, not misleading.  There is no fact relating to any event or
circumstance that has occurred or arisen since the date of the Initial
Projections that the Company has not disclosed to the Current Noteholders in
writing that has had or, so far as the Company can now reasonably foresee, could
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.  All pro forma financial information, financial or other
projections and forward-looking statements delivered to the Current Noteholders
(including the Initial Projections) have been prepared in good faith by the
Company based on reasonable assumptions.
 
 
3.3.
Solvency.

 
The fair value of the business and assets of each of the Company and each
Subsidiary Guarantor exceeds the amount that will be required to pay its
respective liabilities (including, without limitation, contingent, subordinated,
unmatured and unliquidated liabilities on existing debts, as such liabilities
may become absolute and matured).  Neither the Company nor the Subsidiary
Guarantors is engaged in any business or transaction, or about to engage in any
business or transaction, for which such Person has unreasonably small assets or
capital (within the meaning of the Uniform Fraudulent Transfer Act, the Uniform
Fraudulent Conveyance Act and Section 548 of the Federal Bankruptcy Code), and
neither the Company nor the Subsidiary Guarantors has any intent to:

 
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(a)           hinder, delay or defraud any entity to which any of them is, or
will become, on or after the Closing Date, indebted, or
 
(b)           incur debts that would be beyond any of their ability to pay as
they mature.
 
 
3.4.
No Defaults.

 
Except for the Defaults set forth on Schedule 3.4 (the “Specified Defaults”), no
event has occurred and no condition exists that, upon the execution and delivery
of this Agreement and the effectiveness of the Amendments, would constitute a
Default or an Event of Default.
 
 
3.5.
Title to Properties.

 
The Company and its Subsidiaries have good and sufficient title to or the legal
right to use their respective properties, including all such properties
reflected in the most recent audited balance sheet of the Company delivered
pursuant to the provisions of Section 7.1 of the Existing Note Agreement (except
as sold or otherwise disposed of in the ordinary course of business) or
purported to have been acquired by the Company or any Subsidiary after said date
(except as sold or otherwise disposed of in the ordinary course of business), in
each case (a) to the extent such properties are individually or in the aggregate
Material, and (b) free and clear from Liens not permitted by the Financing
Documents.
 
 
3.6.
Transaction is Legal and Authorized; Obligations are Enforceable.

 
(a)           The execution and delivery of this Agreement, the Notes, the
Subsidiary Guaranty Amendment and the other documents and instruments entered
into in connection herewith and therewith (collectively, the “Fourth Amendment
Documents”) by the Company and the Subsidiary Guarantors (collectively, the
“Obligors”) and compliance by the Obligors with all of their respective
obligations thereunder:
 
(i)           is within the corporate or limited liability company powers of
each Obligor;
 
(ii)           is legal and does not conflict with, result in any breach in any
of the provisions of, constitute a default under, or result in the creation of
any Lien upon any property of the Obligors under the provisions of, any
agreement, charter instrument, bylaw or other instrument to which any Obligor is
a party or by which it or any of its Property may be bound; and
 
(iii)           does not give rise to a right or option of any other Person
under any agreement or other instrument, which right or option, individually or
in the aggregate, could reasonably be expected to have a Material Adverse
Effect.

 
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(b)           The Fourth Amendment Documents have been duly authorized by all
necessary action on the part of each Obligor and each Fourth Amendment Document
has been executed and delivered by one or more duly authorized officers of each
Obligor party thereto, and each constitutes a legal, valid and binding
obligation of such Obligor, enforceable in accordance with its terms, except
that such enforceability may be:
 
(i)           limited by applicable bankruptcy, reorganization, arrangement,
insolvency, moratorium or other similar laws affecting the enforceability of
creditors’ rights generally; and
 
(ii)           subject to the availability of equitable remedies.
 
 
3.7.
Collateral Representations.

 
(a)           Valid and Perfected Security Interests.  The Security Documents
create in favor of the Collateral Agent, for the benefit of the holders from
time to time of the Notes and the Lenders, a good and valid security interest
upon the property purported to be encumbered thereby, subject only to Liens
permitted by the terms of the Financing Documents (“Permitted Liens”).  Such
security interest is a first priority (subject to Permitted Liens) security
interest duly perfected with respect to all property purported to be covered
thereby (other than any motor vehicles and any fixtures for which a fixture
filing is not required under the terms of the Security Agreement) and shall be
effective as to any purchaser or grantee of the property encumbered thereby.
 
(b)           Filings and Registrations.  No authorization or approval or other
action by, and no notice to or filing with, any Governmental Authority is
required for:
 
(A)           the continued existence of the Liens granted pursuant to the
Security Documents; or
 
(B)           the continued perfection of such security interest (other than any
motor vehicles and any fixtures for which a fixture filing is not required under
the terms of the Security Agreement);
 
(c)           Absence of Financing Statements, etc.  Except for Permitted Liens,
there is no financing statement, security agreement, chattel mortgage, real
estate mortgage or other document filed or recorded with any filing records,
registry or other public office, that purports to cover, affect or give notice
of any present or possible future Lien on, or security interest in, any property
of any Obligor or any rights relating thereto.

(d)           Deposit Accounts.  The Obligors maintain all of their deposit and
securities accounts with the Collateral Agent, other than (i) any such accounts
holding money or securities for the benefit of employees of the Obligors under
employee benefit plans and (ii) any such accounts the current outstanding
balance of which does not exceed $100,000 with respect to any single account.
 
(e)           Third Party Beneficiary.  The Lenders are intended third party
beneficiaries of the representations set forth in this Section 3.7.

 
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3.8.
Certain Laws.

 
The execution and delivery of the Fourth Amendment Documents by the Obligors and
the consummation of the transaction contemplated hereby:
 
(a)           is not subject to regulation under the Investment Company Act of
1940, as amended, or the Federal Power Act, as amended, and
 
(b)           does not violate any provision of any statute or other rule or
regulation of any Governmental Authority applicable to the Company or any
Subsidiary.
 
 
3.9.
Litigation; Observance of Agreements.

 
(a)           There are no actions, suits or proceedings pending or, to the
knowledge of the Company, threatened against or affecting the Company or any
Subsidiary or any property of the Company or any Subsidiary in any court or
before any arbitrator of any kind or before or by any Governmental Authority
that, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.
 
(b)           Neither the Company nor any Subsidiary is in default under any
term of any order, judgment, decree or ruling of any court, arbitrator or
Governmental Authority or is in violation of any applicable law, ordinance, rule
or regulation (including, without limitation, Environmental Laws) of any
Governmental Authority, which default or violation, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect.
 
3.10.
Charter Instruments; Other Agreements.

 
Neither the Company nor any Subsidiary is in violation in any respect of any
term of any charter instrument or bylaw, other than possible immaterial
violations by Mexican Subsidiaries.  Except for the Specified Defaults, upon the
execution and delivery of the 2009A Amendment to Loan Documents (as defined
herein) and the Fourth Amendment Documents and the effectiveness of the
amendments provided therein, neither the Company nor any Subsidiary is in
violation or default in respect of any term in any agreement or other instrument
to which it is a party or by which it or any of its material property may be
bound or affected which violation or default, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.  The execution,
delivery and performance by each Obligor of the Fourth Amendment Documents to
which it is a party will not conflict with or result in the material breach of
any of the terms, conditions or provisions of any order, judgment, decree or
ruling of any court, arbitrator or Governmental Authority applicable to the
Company or any Subsidiary or violate any provision of any statute or other rule
or regulation of any Government Authority applicable to the Company or any
Subsidiary.

 
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3.11.
Taxes.

 
The Company and its Subsidiaries have filed all tax returns that are required to
have been filed in any jurisdiction, and have paid all taxes shown to be due and
payable on such returns and all other taxes and assessments levied upon them or
their properties, assets, income or franchises, to the extent such taxes and
assessments have become due and payable and before they have become delinquent,
except for any taxes and assessments (a) the amount of which is not individually
or in the aggregate Material or (b) the amount, applicability or validity of
which is currently being contested in good faith by appropriate proceedings and
with respect to which the Company or a Subsidiary, as the case may be, has
established adequate reserves in accordance with GAAP, other than, in the case
of this clause (b), taxes and assessments in immaterial amounts required to be
paid by Mexican Subsidiaries.  The Company knows of no basis for any other tax
or assessment that could reasonably be expected to have a Material Adverse
Effect.  The charges, accruals and reserves on the books of the Company and the
Subsidiaries (other than the Mexican Subsidiaries) in respect of federal, state
or other taxes for all fiscal periods are adequate.  The charges, accruals and
reserves on the books of the Mexican Subsidiaries in respect of federal, state
or other taxes for all fiscal periods are adequate in all material respects.
 
3.12.
Governmental Consent.

 
Neither the Obligors, nor the nature of any of their respective businesses or
properties, is such so as to require a consent, approval or authorization of, or
filing, registration or qualification with, any Governmental Authority as a
condition to the execution and delivery of the Fourth Amendment Documents.
 
3.13.
Fees.

 
Neither the Company nor any Subsidiary thereof has paid (or promised to pay) any
amendment fee or any other direct or indirect compensation to any party to the
Credit Agreement or to any other creditor of the Company or any Subsidiary
(other than Ernst & Young LLP, Middleton Reutlinger PSC, Sherman & Sterling LLP
****OMITTED****) in connection with the transactions contemplated hereby other
than as contemplated by this Agreement and the 2009A Amendment to Loan
Documents.
 
3.14.
Indebtedness; Liens.

 
There is no outstanding Debt of the Company or any Subsidiary in respect of
borrowed money, Capital Leases, the deferred purchase price of property, or
existing guaranties issued by the Company or any Subsidiary, in each case in an
amount in excess of $100,000, or existing Liens encumbering the property of the
Company or any Subsidiary other than as disclosed in the most recent annual and
quarterly financial statements of the Company delivered to the Current
Noteholders.  Schedule 10.16(b) sets forth a complete and correct list of all of
the real properties leased by the Obligors at which Collateral is located with
an aggregate net book value in excess of $1,000,000.  Neither the Company nor
any Subsidiary is in default and no waiver of default is currently in effect, in
the payment of any principal or interest on any Debt of the Company or such
Subsidiary, and no event or condition exists with respect to any Debt of the
Company or any Subsidiary that would permit (or that with notice or the lapse of
time, or both, would permit) one or more Persons to cause such Debt to become
due and payable before its stated maturity or before its regularly scheduled
dates of payment, in each case after giving effect to the amendments
contemplated by this Agreement and the 2009A Amendment to Loan Documents.

 
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3.15.
Amendment to Credit Agreement.

 
The Company has delivered to each of the Current Noteholders true and correct
copies of the existing Credit Agreement and the 2009A Amendment to Loan
Documents.
 
3.16.
Fiscal Quarter End Dates.

The fiscal quarter end dates of the Company for fiscal year 2009 are April 5,
2009, July 5, 2009, October 4, 2009 and December 31, 2009.
 
3.17.
2009 Monthly Business Plan.

 
The 2009 Monthly Business Plan provides a reasonable estimate of the future
financial performance of the Company and the Subsidiary Guarantors for the
periods set forth therein and the 2009 Monthly Business Plan has been prepared
on the basis of the assumptions set forth therein, which the Company believes
are fair and reasonable in light of current and reasonably foreseeable business
conditions at the time submitted to the holders of the Notes, subject, in each
case, to the Company’s disclosures in the Draft 10-K and its most recent Form
10-Q filing with the Securities and Exchange Commission.
 
3.18.
Completeness of Disclosures.

 
Any representation, warranty, covenant or other provision hereof, or in any
related document, which relates to the accuracy or completeness of any notice,
reporting obligation or disclosure to the Noteholders shall be accurate or
complete only when taken as a whole together with the Company’s other notices,
reports or disclosures, including, without limitation, the Risk Factors sections
of the Company’s Form 10-K and 10-Q filings.

4.
AMENDMENTS TO NOTES AND NOTE PURCHASE AGREEMENT.

 
 
4.1.
Amendment of Notes.

 
(a)           Series A Notes.  The Existing Series A Notes are hereby and shall
be deemed to be, automatically and without any further action, amended and
restated in their entirety as set forth on Exhibit A; except that the date,
registration number and principal amount set forth in each Existing Series A
Note shall remain the same; provided, however, that, at the request of any
Current Noteholder, the Company shall execute and deliver a new Series A Note or
Series A Notes in the form of such Exhibit A in exchange for its Existing Series
A Note, registered in the name of such Current Noteholder, in the aggregate
principal amount of the Series A Notes owing to such Current Noteholder on the
date hereof and dated the date of the last interest payment made to such Current
Noteholder in respect of its Existing Series A Notes.  Each reference to the
“7.25% Senior Notes, Series A, due June 30, 2009” in any of the Financing
Documents is hereby deleted and replaced with a reference to the “12.00% Senior
Notes, Series A, due January 15, 2010”.  Each other reference to “7.25%” in any
of such agreements as the interest rate applicable to the Series A Notes is
hereby deleted and replaced with “12.00%”.

 
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(b)           Series B Notes. The Existing Series B Notes are hereby and shall
be deemed to be, automatically and without any further action, amended and
restated in their entirety as set forth on Exhibit B; except that the date,
registration number and principal amount set forth in each Existing Series B
Note shall remain the same; provided, however, that, at the request of any
Current Noteholder, the Company shall execute and deliver a new Series B Note or
Series B Notes in the form of such Exhibit B in exchange for its Existing Series
B Note, registered in the name of such Current Noteholder, in the aggregate
principal amount of the Series B Notes owing to such Current Noteholder on the
date hereof and dated the date of the last interest payment made to such Current
Noteholder in respect of its Existing Series B Notes.  Each reference to the
“7.45% Senior Notes, Series B, due June 30, 2011” in any of the Financing
Documents is hereby deleted and replaced with a reference to the “10.20% Senior
Notes, Series B, due January 15, 2010”.  Each other reference to “7.45%” in any
of such agreements as the interest rate applicable to the Series B Notes is
hereby deleted and replaced with “10.20%”.
 
(c)           Series C Notes. The Existing Series C Notes are hereby and shall
be deemed to be, automatically and without any further action, amended and
restated in their entirety as set forth on Exhibit C; except that the date,
registration number and principal amount set forth in each Existing Series C
Note shall remain the same; provided, however, that, at the request of any
Current Noteholder, the Company shall execute and deliver a new Series C Note or
Series C Notes in the form of such Exhibit C in exchange for its Existing Series
C Note, registered in the name of such Current Noteholder, in the aggregate
principal amount of the Series C Notes owing to such Current Noteholder on the
date hereof and dated the date of the last interest payment made to such Current
Noteholder in respect of its Existing Series C Notes.  Each reference to the
“7.55% Senior Notes, Series C, due June 30, 2012” in any of the Financing
Documents is hereby deleted and replaced with a reference to the “10.30% Senior
Notes, Series C, due January 15, 2010”.  Each other reference to “7.55%” in any
of such agreements as the interest rate applicable to the Series C Notes is
hereby deleted and replaced with “10.30%.”
 
 
4.2.
Note Purchase Agreement Amendments.

 
The Existing Note Agreement is hereby and shall be amended in the manner
specified in Exhibit D to this Agreement.
 
 
4.3.
No Other Amendments; Confirmation.

 
Except as expressly provided herein, (a) no terms or provisions of any agreement
are modified or changed by this Agreement, (b) the terms of this Agreement shall
not operate as a waiver by any Current Noteholder of, or otherwise prejudice any
Current Noteholder’s rights, remedies or powers under, the Existing Note
Agreement, the Existing Notes or any other Financing Document or under any
applicable law, and (c) the terms and provisions of the Existing Note Agreement,
the Existing Notes and each other Financing Document shall continue in full
force and effect.

 
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5.
CONDITIONS TO EFFECTIVENESS OF WAIVERS AND AMENDMENTS.

 
The Waivers and Amendments shall become effective on the date hereof (the
“Closing Date”), provided that the following conditions precedent have been
satisfied to the satisfaction of the Current Noteholders pursuant to
documentation (where applicable) in form and substance satisfactory to them:
 
(a)           the Obligors shall have executed and delivered this Agreement and
the Subsidiary Guaranty Amendment to the Current Noteholders, and the Company
shall have executed and delivered replacement Notes to any Current Noteholder
requesting the same;
 
(b)           the Company shall have delivered to each of the Current
Noteholders true and correct copies of the existing Credit Agreement and the
2009A Amendment to Loan Documents, which agreements shall be in full force and
effect;
 
(c)           each Obligor shall have delivered a certificate of its secretary
in the form agreed to by the Company and special counsel to the Current
Noteholders;
 
(d)           ***************************OMITTED******************************
*******;
 
(e)           the Company shall have provided all other due diligence materials
requested by the Current Noteholders;
 
(f)           the Company shall have delivered (i) a legal opinion of the
general counsel to the Obligors, addressing the matters set forth on Exhibit E,
and (ii) a legal opinion of Middleton Routlinger, addressing the matters set
forth on Exhibit F;
 
(i)           the Company shall have paid to each Current Noteholder, in
consideration of the agreements of such Current Noteholder contained herein, by
wire transfer of immediately available funds, a fee in an amount equal to 0.75%
of the aggregate outstanding principal amount of the Notes held by such Current
Noteholder.  In accordance with Section 17.2(b) of the Note Purchase Agreement,
such fee shall be deemed earned when paid and shall not be subject to recovery
or repayment in the event this Agreement is terminated or rescinded for any
reason;
 
(j)           the Company shall have paid all unpaid fees and disbursements of
Bingham McCutchen LLP (“Bingham”), special counsel to the Current Noteholders,
as reflected in an invoice presented to the Company on or before the date
hereof;
 
(k)           within two (2) days after execution of this Agreement, the Company
shall have received, and delivered to each of the Current Noteholders, the
audited financial statements for its 2008 fiscal year together with the
certificates and auditors’ opinion as required by Section 7.1(b) of the Existing
Note Purchase Agreement *************************************
***************************************OMITTED** ****************************
********************************; and
 
(l)           The Current Noteholders, the Lenders and the Company shall have
agreed to amendments to the Existing Sharing Agreement reasonably satisfactory
to the Current Noteholders concerning the calculation of Pro Rata Shares with
respect to amounts due under Sections 8.1(b) of the Note Purchase Agreement.

 
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Any document entered into in connection with the transaction contemplated hereby
shall be in form and substance satisfactory to the Required Holders, provided
that execution and delivery of this Agreement by the Required Holders shall be
deemed to be an affirmation that such document is so satisfactory.
 
6.
DEFINED TERMS.

 
Capitalized terms used herein and not otherwise defined herein shall have the
meanings ascribed to them in the Note Purchase Agreement.  In addition, the
following capitalized terms used herein shall have the meanings ascribed to them
in the corresponding section of this Agreement referenced below:
 
“Agreement” means this Fourth Amendment to Note Purchase Agreement.
 
“Amendments” – Section 2.
 
“Bingham” – Section 5(i).
 
“Closing Date” – Section 5.
 
“Company” – the introductory sentence hereof.
 
“Current Noteholders” – Section 1.
 
“Existing Financing Documents” – Section 8.
 
“Existing Note Agreement” – Section 1.
 
“Existing Notes” – Section 1.
 
“Existing Pledge Agreement” – means the Pledge Agreement, dated as of September
13, 2005, by and among the Company, the Collateral Agent, Sypris Technologies
Mexican Holdings, LLC and Sypris Technologies, Inc.
 
“Existing Series A Notes” – Section 1.
 
“Existing Series B Notes” – Section 1.
 
“Existing Series C Notes” – Section 1.
 
“Existing Sharing Agreement” – means the Amended and Restated Collateral Sharing
Agreement, dated as of April 6, 2007, by and among the Collateral Agent, the
Lenders and the holders of the Notes.

 
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“Fourth Amendment Documents” – Section 3.6(a).
 
“Initial Projections” – Section 3.2.
 
“Note Purchase Agreement” – Section 1.
 
“Notes” – Section 1.
 
“Obligors” – Section 3.6(a).
 
“Permitted Liens” – Section 3.7(a).
 
“Specified Defaults” — Section 3.4.
 
7.
EXPENSES.

 
The Company hereby agrees to pay, as and when billed, all reasonable costs and
expenses of the Current Noteholders, including, without limitation, the fees and
expenses of Bingham, and also including any other reasonable out-of-pocket
expenses of the Current Noteholders incurred in connection with this Agreement
and the Financing Documents and in otherwise assessing, analyzing, evaluating,
protecting, asserting, defending or enforcing any rights or remedies which are
or may be available to the Current Noteholders under the Financing
Documents.  This provision shall be supplementary to, and shall not in any way
be deemed to limit, the terms of any engagement letter between the Company and
Bingham or any agreement of the Company or any Subsidiary to pay the fees and
expenses of the Current Noteholders in any other Financing Document.
 
8.
RELEASE.

 
In order to induce the Current Noteholders to enter into this Agreement, the
Obligors acknowledge and agree that: (a) neither the Company nor any of its
Subsidiaries has any claim or cause of action against any of the Current
Noteholders (or any of their respective directors, trustees, officers,
employees, attorneys, advisors or agents) relating to or arising out of the
Existing Note Agreement, the Existing Notes, the Subsidiary Guaranty, the
Existing Pledge Agreement, the Existing Sharing Agreement or any agreement
entered into in connection therewith (collectively, the “Existing Financing
Documents”); (b) neither the Company nor any of its Subsidiaries has any offset
right, counterclaim or defense of any kind against any of their respective
obligations, indebtedness or liabilities to any of the Current Noteholders; and
(c) each of the Current Noteholders and the Collateral Agent has heretofore
properly performed and satisfied in a timely manner all of its obligations to
the Company and its Subsidiaries under the Existing Financing Documents. The
Obligors wish to eliminate any possibility that any past conditions, acts,
omissions, events, circumstances or matters would impair or otherwise adversely
affect any of the Current Noteholders’ or the Collateral Agent’s rights,
interests, contracts, or remedies under the Existing Financing Documents,
whether known or unknown, as applicable. Therefore, each of the Obligors (in the
case of the Subsidiary Guarantors, pursuant to the acknowledgement and agreement
on the signature pages hereto) unconditionally releases, waives and forever
discharges (x) any and all liabilities, obligations, duties, promises or
indebtedness of any kind of the Current Noteholders and the Collateral Agent to
the Company or any of its Subsidiaries, except the obligations to be performed
by any of them on or after the date hereof as expressly stated in the Financing
Documents, as such obligations may be modified pursuant to the terms of this
Agreement, and (y) all claims, offsets, causes of action, suits or defenses of
any kind whatsoever (if any), whether arising at law or in equity, whether known
or unknown, which the Company or its Subsidiaries might otherwise have against
any Current Noteholder, the Collateral Agent or any of their respective
directors, trustees, officers, employees or agents, in either case (x) or (y),
whether known or unknown, on account of any past or presently existing
condition, act, omission, event, contract, liability, obligation, indebtedness,
claim, cause of action, defense, circumstance or matter of any kind.  Neither
the Collateral Agent nor any Current Noteholder shall be liable with respect to,
and the Company and each Subsidiary Guarantor hereby waives, releases and agrees
not to sue for, any special, indirect or consequential damages relating to this
Agreement or any other Financing Document or arising out of its activities in
connection herewith or therewith (whether before, on or after the date hereof).

 
11

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

 

9.
MISCELLANEOUS.

 
 
9.1.
Part of Note Purchase Agreement, Future References, etc.

 
This Agreement shall be construed in connection with and as a part of the
Existing Note Agreement and, except as expressly amended by this Agreement, all
terms, conditions and covenants contained in the Existing Note Agreement, the
Existing Notes and the other Existing Financing Documents are hereby ratified
and shall be and remain in full force and effect.  Any and all notices,
requests, certificates and other instruments executed and delivered after the
execution and delivery of this Agreement may refer to the Note Purchase
Agreement without making specific reference to this Agreement, but nevertheless
all such references shall include this Agreement unless the context otherwise
requires.
 
 
9.2.
Governing Law.

 
THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF ILLINOIS, UNITED STATES OF AMERICA, EXCLUDING
CHOICE-OF-LAW PRINCIPLES OF THE LAW OF SUCH STATE THAT WOULD REQUIRE THE
APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE.
 
 
9.3.
Duplicate Originals, Execution in Counterpart.

 
Two (2) or more duplicate originals hereof may be signed by the parties, each of
which shall be an original but all of which together shall constitute one and
the same instrument.  This Agreement may be executed in one or more counterparts
and shall become effective at the time provided in Section 5 hereof, and each
set of counterparts that, collectively, show execution by the Company and each
Current Noteholder shall constitute one duplicate original.
 
 
9.4.
Binding Effect.

 
This Agreement shall be binding upon and shall inure to the benefit of the
Company and the Current Noteholders and their respective successors and assigns.

 
12

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

 

If this Agreement is satisfactory to each of you, please so indicate by signing
the applicable acceptance on a counterpart hereof and returning such counterpart
to the Company, whereupon this Agreement shall become binding among the Company,
the Subsidiary Guarantors and each of you in accordance with its terms.

 
Very truly yours,
     
SYPRIS SOLUTIONS, INC.
     
By:
/s/ Jeffrey T. Gill
   
Name: Jeffrey T. Gill
 
Title: President & CEO

 
[Signature Page to Fourth Amendment to Note Purchase Agreement]
 
 

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

 

THE GUARDIAN LIFE INSURANCE
COMPANY OF AMERICA

By:
/s/ Ellen I. Whittaker
 
Name: Ellen I. Whittaker
Title: Senior Director, Private Placements

 
[Signature Page to Fourth Amendment to Note Purchase Agreement]
 
 

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

 

CONNECTICUT GENERAL LIFE INSURANCE
COMPANY
By:  CIGNA Investments, Inc. (authorized agent)

By:
/s/ David M. Cass
 
Name: David M. Cass
Title: Managing Director

LIFE INSURANCE COMPANY OF NORTH
AMERICA
By:  CIGNA Investments, Inc. (authorized agent)

By:
/s/ David M. Cass
 
Name: David M. Cass
Title: Managing Director

 
[Signature Page to Fourth Amendment to Note Purchase Agreement]

 

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

 

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
(Successor by merger to JEFFERSON
PILOT FINANCIAL INSURANCE
COMPANY)
 
By:
Delaware Investment Advisers, a Series of Delaware
 
Management Business Trust, Attorney-in-Fact
     
By:
/s/ Edward J. Brennan
   
Name: Edward J. Brennan
 
Title: Vice President

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
(Successor by merger to JEFFERSON-PILOT LIFE
INSURANCE COMPANY)

By:
Delaware Investment Advisers, a Series of Delaware
 
Management Business Trust, Attorney-in-Fact
     
By:
/s/ Edward J. Brennan
   
Name: Edward J. Brennan
 
Title: Vice President

 
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
(Successor by merger to JEFFERSON PILOT LIFEAMERICA
INSURANCE COMPANY)

By:
Delaware Investment Advisers, a Series of Delaware
 
Management Business Trust, Attorney-in-Fact
     
By:
/s/ Edward J. Brennan
   
Name: Edward J. Brennan
 
Title: Vice President

 
[Signature Page to Fourth Amendment to Note Purchase Agreement]

 

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

 
 
The undersigned Subsidiary Guarantors hereby acknowledge and reaffirm all of
their obligations under the Subsidiary Guaranty and further acknowledge and
agree to the terms and provisions contained herein, agree to be bound by the
terms of Section 8 hereof and consent to the Company’s execution hereof:

SYPRIS TEST & MEASUREMENT, INC.
   
By:
/s/ Jeffrey T. Gill
   
Name: Jeffrey T. Gill
 
Title: Chairman of the Board
     
SYPRIS TECHNOLOGIES, INC.
     
By:
/s/ Jeffrey T. Gill
   
Name: Jeffrey T. Gill
 
Title: Chairman of the Board
     
SYPRIS ELECTRONICS, LLC
     
By:
/s/ Jeffrey T. Gill
   
Name: Jeffrey T. Gill
 
Title: Chairman of the Board
     
SYPRIS DATA SYSTEMS, INC.
     
By:
/s/ Jeffrey T. Gill
   
Name: Jeffrey T. Gill
 
Title: Chairman of the Board
     
SYPRIS TECHNOLOGIES MARION, LLC
     
By:
/s/ Jeffrey T. Gill
   
Name: Jeffrey T. Gill
 
Title: Chairman of the Board
     
SYPRIS TECHNOLOGIES KENTON, INC.
     
By:
/s/ Jeffrey T. Gill
   
Name: Jeffrey T. Gill
 
Title: Chairman of the Board
 

 
[Signature Page to Fourth Amendment to Note Purchase Agreement]

 

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

 

SYPRIS TECHNOLOGIES MEXICAN HOLDINGS, LLC
     
By:
/s/ Jeffrey T. Gill
   
Name: Jeffrey T. Gill
 
Title: Chairman of the Board
 

[Signature Page to Fourth Amendment to Note Purchase Agreement]

 

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

 

ANNEX 1

CURRENT NOTEHOLDERS AND PRINCIPAL AMOUNTS

   
Principal Amount
 
Holder
 
Series A
   
Series B
   
Series C
 
The Guardian Life Insurance Company of America
              $ 10,909,090  
Connecticut General Life Insurance Company
        $ 6,545,456          
Life Insurance Company of North America
          4,363,636          
The Lincoln National Life Insurance Company, successor by merger to
Jefferson-Pilot Financial Insurance Company
  $ 3,272,727                  
The Lincoln National Life Insurance Company, successor by merger to
Jefferson-Pilot Life Insurance Company
            2,727,273          
Lincoln Life & Annuity Company of New York, successor by merger to Jefferson
Pilot LifeAmerica Insurance Company
    818,182       1,363,636          

 
 
Annex 1

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

 

SCHEDULE 3.4

SPECIFIED DEFAULTS

The Company has failed to observe or perform Section 10.1(a) of the Existing
Note Agreement by failing to maintain the ratio set forth therein as of its
fourth Fiscal Quarter of 2008 and its first Fiscal Quarter of 2009 (the
“Consolidated Net Debt to EBITDA Ratio Failure”).

The Company has failed to observe or perform Section 10.1(b) of the Existing
Note Agreement by failing to maintain the ratio set forth therein as of its
fourth Fiscal Quarter of 2008 and its first Fiscal Quarter of 2009 (the “Fixed
Charge Coverage Failure”).

The Company has failed to observe or perform Section 10.2 of the Existing Note
Agreement by failing to maintain level set forth therein as of its fourth Fiscal
Quarter of 2008 and its first Fiscal Quarter of 2009 (the “Minimum Adjusted
Consolidated Net Worth Failure”).

A breach of any representations and warranties which may have been included in
any certificate or instrument delivered by the Company related to the Fixed
Charge Coverage Failure, the Adjusted Funded Debt to EBITDA Ratio Failure and
the Minimum Net Worth Failure (the “Representations and Warranties Failures”)
provided the Company and the Current Noteholders represent that to the best
knowledge of each of them respectively no such representation or warranty has
been made.

A failure to satisfy within the time required certain of the post closing
obligations of Section 10.16 of the Existing Note Agreement (the “Condition
Subsequent Failures”).

A failure to provide within the time required certain informational reports
delivered by the Company prior to the date hereof under the terms of the
Existing Note Agreement (the “Reporting Failures”).

Any failure to timely notify each holder of Notes that is an Institutional
Investor, or any other Person, of the Company’s knowledge of the Consolidated
Net Debt to EBITDA Ratio Failure, the Fixed Charge Coverage Failure and the
Minimum Adjusted Consolidated Net Worth Failure as required by the Note Purchase
Agreement (the “Notice Failures”).

The Fixed Charge Coverage Failure, the Consolidated Net Debt to EBITDA Ratio
Failure, the Minimum Adjusted Consolidated Net Worth Failure, the
Representations and Warranties Failures, the Condition Subsequent Failures, and
the Reporting Failures and the Notice Failures, as they are in effect on the
date of this Agreement, are collectively referred to as the “Specified
Defaults”.

 
Schedule 3.4

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

 

EXHIBIT A

[FORM OF SERIES A SENIOR NOTE]
 
SYPRIS SOLUTIONS, INC.
 
12.00% Senior Note, Series A
Due January 15, 2010

No. AR-[___]
[Date]
$[________]
PPN: 871655 C*5

 
FOR VALUE RECEIVED, the undersigned, SYPRIS SOLUTIONS, INC. (herein called the
“Company”), a corporation organized and existing under the laws of the State of
Delaware, promises to pay to [___________], or registered assigns, the principal
sum of [________________] Dollars ($[_________]) on January 15, 2010, with
interest (computed on the basis of a 360-day year of twelve 30-day months) (a)
on the unpaid balance thereof at the rate of (i) 4.73% per annum at all times
prior to, but not including, April 6, 2007, (ii) 7.25% per annum at all times on
or after April 6, 2007 to, but not including, April 1, 2009, and (iii) 12.00%
per annum at all times on or after April 1, 2009 (in each case subject to clause
(b) below), payable monthly, on the last day of each calendar month in each
calendar year, commencing with the first calendar month end next succeeding the
date hereof, until the principal hereof shall have become due and payable, and
(b) to the extent permitted by law, on any overdue payment of interest and,
during the continuance of an Event of Default, on such unpaid balance and on any
overdue payment of any Make-Whole Amount (as defined in the Note Purchase
Agreement referred to below), payable monthly as aforesaid (or, at the option of
the registered holder hereof, on demand), at a rate per annum from time to time
equal to 14.00%.
 
Payments of principal of, interest on and any Make-Whole Amount with respect to
this Note are to be made in lawful money of the United States of America at the
principal office of J.P. Morgan Chase Bank, NA (or its successor) in Chicago,
Illinois or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreement
referred to below.
 
This Note is one of a series of Senior Notes (herein called the “Notes”) issued
pursuant to a Note Purchase Agreement dated as of June 1, 2004 (as from time to
time amended, the “Note Purchase Agreement”), between the Company and the
respective Purchasers named therein and is entitled to the benefits
thereof.  Each holder of this Note will be deemed, by its acceptance hereof, (i)
to have agreed to the confidentiality provisions set forth in Section 20 of the
Note Purchase Agreement and (ii) to have made the representations and agreements
set forth in Section 6 of the Note Purchase Agreement.
 
This Note is a registered Note and, as provided in the Note Purchase Agreement,
upon surrender of this Note for registration of transfer, duly endorsed, or
accompanied by a written instrument of transfer duly executed, by the registered
holder hereof or such holder’s attorney duly authorized in writing, a new Note
for a like principal amount will be issued to, and registered in the name of,
the transferee.  Prior to due presentment for registration of transfer, the
Company may treat the person in whose name this Note is registered as the owner
hereof for the purpose of receiving payment and for all other purposes, and the
Company will not be affected by any notice to the contrary.

 
Exhibit A-1

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

 

This Note is subject to optional prepayment, in whole or from time to time in
part, and is subject to mandatory prepayment of principal and other amounts due
under the Note Purchase Agreement, in each case at the times and on the terms
specified in the Note Purchase Agreement but not otherwise.
 
If an Event of Default, as defined in the Note Purchase Agreement, occurs and is
continuing, the principal of this Note may be declared or otherwise become due
and payable in the manner, at the price (including any applicable Make-Whole
Amount) and with the effect provided in the Note Purchase Agreement.
 
Payment of the principal of, and interest and Make-Whole Amount, if any, on this
Note, and all other amounts due under the Note Purchase Agreement, is guaranteed
pursuant to the terms of a Subsidiary Guaranty dated as of June 1, 2004 of
certain Subsidiaries of the Company, as amended or supplemented from time to
time.
 
This Note shall be construed and enforced in accordance with, and the rights of
the parties shall be governed by, the law of the State of Illinois excluding
choice-of-law principles of the law of such State that would require the
application of the laws of a jurisdiction other than such State.
 

 
SYPRIS SOLUTIONS, INC.
     
By:
   
Name:
 
Title:
   

 
 
Exhibit A-2

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

 

EXHIBIT B

[FORM OF SERIES B SENIOR NOTE]
 
SYPRIS SOLUTIONS, INC.
 
10.20% Senior Note, Series B
Due January 15, 2010

No. BR-[___]
[Date]
$[________]
PPN: 871655 C@3

 
FOR VALUE RECEIVED, the undersigned, SYPRIS SOLUTIONS, INC. (herein called the
“Company”), a corporation organized and existing under the laws of the State of
Delaware, promises to pay to [___________], or registered assigns, the principal
sum of ________________] Dollars ($[_______]) on January 15, 2010, with interest
(computed on the basis of a 360-day year of twelve 30 day months) (a) on the
unpaid balance thereof at the rate of (i) 5.35% per annum at all times prior to,
but not including, April 6, 2007, (ii) 7.45% per annum at all times on or after
April 6, 2007 to, but not including, April 1, 2009, and (iii) 10.20% per annum
at all times on or after April 1, 2009 (in each case subject to clause (b)
below), payable monthly, on the last day of each calendar month in each calendar
year, commencing with the first calendar month end next succeeding the date
hereof, until the principal hereof shall have become due and payable, and (b) to
the extent permitted by law, on any overdue payment of interest and, during the
continuance of an Event of Default, on such unpaid balance and on any overdue
payment of any Make-Whole Amount (as defined in the Note Purchase Agreement
referred to below), payable monthly as aforesaid (or, at the option of the
registered holder hereof, on demand), at a rate per annum from time to time
equal to 12.20%.
 
Payments of principal of, interest on and any Make-Whole Amount with respect to
this Note are to be made in lawful money of the United States of America at the
principal office of J.P. Morgan Chase Bank, NA (or its successor) in Chicago,
Illinois or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreement
referred to below.
 
This Note is one of a series of Senior Notes (herein called the “Notes”) issued
pursuant to a Note Purchase Agreement dated as of June 1, 2004 (as from time to
time amended, the “Note Purchase Agreement”), between the Company and the
respective Purchasers named therein and is entitled to the benefits
thereof.  Each holder of this Note will be deemed, by its acceptance hereof, (i)
to have agreed to the confidentiality provisions set forth in Section 20 of the
Note Purchase Agreement and (ii) to have made the representations and agreements
set forth in Section 6 of the Note Purchase Agreement.
 
This Note is a registered Note and, as provided in the Note Purchase Agreement,
upon surrender of this Note for registration of transfer, duly endorsed, or
accompanied by a written instrument of transfer duly executed, by the registered
holder hereof or such holder’s attorney duly authorized in writing, a new Note
for a like principal amount will be issued to, and registered in the name of,
the transferee.  Prior to due presentment for registration of transfer, the
Company may treat the person in whose name this Note is registered as the owner
hereof for the purpose of receiving payment and for all other purposes, and the
Company will not be affected by any notice to the contrary.

 
Exhibit B-1

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

 

This Note is subject to optional prepayment, in whole or from time to time in
part, and is subject to mandatory prepayment of principal and other amounts due
under the Note Purchase Agreement, in each case at the times and on the terms
specified in the Note Purchase Agreement but not otherwise.
 
If an Event of Default, as defined in the Note Purchase Agreement, occurs and is
continuing, the principal of this Note may be declared or otherwise become due
and payable in the manner, at the price (including any applicable Make-Whole
Amount) and with the effect provided in the Note Purchase Agreement.
 
Payment of the principal of, and interest and Make-Whole Amount, if any, on this
Note, and all other amounts due under the Note Purchase Agreement, is guaranteed
pursuant to the terms of a Subsidiary Guaranty dated as of June 1, 2004 of
certain Subsidiaries of the Company, as amended or supplemented from time to
time.
 
This Note shall be construed and enforced in accordance with, and the rights of
the parties shall be governed by, the law of the State of Illinois excluding
choice-of-law principles of the law of such State that would require the
application of the laws of a jurisdiction other than such State.
 

 
SYPRIS SOLUTIONS, INC.
     
By:
   
Name:
 
Title:

 
 
Exhibit B-2

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

 

EXHIBIT C

[FORM OF SERIES C SENIOR NOTE]
 
SYPRIS SOLUTIONS, INC.
 
10.30% Senior Note, Series C
Due January 15, 2010

No. CR-[___]
[Date]
$[________]
PPN: 871655 C#1

 
FOR VALUE RECEIVED, the undersigned, SYPRIS SOLUTIONS, INC. (herein called the
“Company”), a corporation organized and existing under the laws of the State of
Delaware, promises to pay to [___________], or registered assigns, the principal
sum of [________________] Dollars ($[________]) on January 15, 2010, with
interest (computed on the basis of a 360-day year of twelve 30-day months) (a)
on the unpaid balance thereof at the rate of (i) 5.78% per annum at all times
prior to, but not including, April 6, 2007 and (ii) 7.55% per annum at all times
on or after April 6, 2007 to, but not including, April 1, 2009, and (iii) 10.30%
per annum at all times on or after April 1, 2009  (in each case subject to
clause (b) below), payable monthly, on the last day of each calendar month in
each calendar year, commencing with the first calendar month end next succeeding
the date hereof until the principal hereof shall have become due and payable,
and (b) to the extent permitted by law, on any overdue payment of interest and,
during the continuance of an Event of Default, on such unpaid balance and on any
overdue payment of any Make-Whole Amount (as defined in the Note Purchase
Agreement referred to below), payable monthly as aforesaid (or, at the option of
the registered holder hereof, on demand), at a rate per annum from time to time
equal to 12.30%.
 
Payments of principal of, interest on and any Make-Whole Amount with respect to
this Note are to be made in lawful money of the United States of America at the
principal office of J.P. Morgan Chase Bank, NA (or its successor) in Chicago,
Illinois or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreement
referred to below.
 
This Note is one of a series of Senior Notes (herein called the “Notes”) issued
pursuant to a Note Purchase Agreement dated as of June 1, 2004 (as from time to
time amended, the “Note Purchase Agreement”), between the Company and the
respective Purchasers named therein and is entitled to the benefits
thereof.  Each holder of this Note will be deemed, by its acceptance hereof, (i)
to have agreed to the confidentiality provisions set forth in Section 20 of the
Note Purchase Agreement and (ii) to have made the representations and agreements
set forth in Section 6 of the Note Purchase Agreement.
 
This Note is a registered Note and, as provided in the Note Purchase Agreement,
upon surrender of this Note for registration of transfer, duly endorsed, or
accompanied by a written instrument of transfer duly executed, by the registered
holder hereof or such holder’s attorney duly authorized in writing, a new Note
for a like principal amount will be issued to, and registered in the name of,
the transferee.  Prior to due presentment for registration of transfer, the
Company may treat the person in whose name this Note is registered as the owner
hereof for the purpose of receiving payment and for all other purposes, and the
Company will not be affected by any notice to the contrary.

 
Exhibit C-1

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

 

This Note is subject to optional prepayment, in whole or from time to time in
part, and is subject to mandatory prepayment of principal and other amounts due
under the Note Purchase Agreement, in each case at the times and on the terms
specified in the Note Purchase Agreement but not otherwise.
 
If an Event of Default, as defined in the Note Purchase Agreement, occurs and is
continuing, the principal of this Note may be declared or otherwise become due
and payable in the manner, at the price (including any applicable Make-Whole
Amount) and with the effect provided in the Note Purchase Agreement:
 
Payment of the principal of, and interest and Make-Whole Amount, if any, on this
Note, and all other amounts due under the Note Purchase Agreement, is guaranteed
pursuant to the terms of a Subsidiary Guaranty dated as of June 1, 2004 of
certain Subsidiaries of the Company, as amended or supplemented from time to
time.
 
This Note shall be construed and enforced in accordance with, and the rights of
the parties shall be governed by, the law of the State of Illinois excluding
choice-of-law principles of the law of such State that would require the
application of the laws of a jurisdiction other than such State.
 

 
SYPRIS SOLUTIONS, INC.
     
By:
   
Name:
 
Title:

 
 
Exhibit C-2

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

 

EXHIBIT D

AMENDMENTS TO EXISTING NOTE AGREEMENT

1.
Section 7.1(h) of the Existing Note Agreement is hereby amended to delete the
word “and” appearing after the semi-colon at the end of such section.

 
2.
New Sections 7.1(i) and (j) are hereby added to Section 7.1 of the Existing Note
Agreement in their proper numeric order immediately following existing Section
7.1(h) to read in their entireties as follows:

 
“(i)           13 Week Cash Flow Forecast.  No later than the last calendar day
of each week: (i) a weekly cash flow forecast for each of the next 13 weeks and
(ii) a comparison of the actual weekly cash flow results against the Company’s
forecast for the preceding week and each prior week which forecast is consistent
with the forecasts as set forth in the Company’s 2009 Monthly Business Plan most
recently presented to, and validated by, the Company’s Financial Advisor (the
“2009 Monthly Business Plan”); and
 
(j)           Information Undertakings.  As soon as practicable, but in no event
more than 3 Business Days after receipt or delivery, as applicable, by the
Company, the following: (i) except if otherwise provided by the terms hereof,
each financial statement, report or similar document provided to any Lender
(excluding information to be sent to the Lenders in the ordinary course of the
administration of a banking facility, such as information related to pricing or
borrowing availability), (ii) ***************** *********************
************OMITTED***********, (iii) any final mutually agreed upon term sheets
provided by the Company to, or received by the Company from, any Person who is
arranging or providing refinancing of the Debt under the Note Purchase Agreement
or the Credit Agreement, (iv) **********************
*******************************OMITTED******
**************************************************************, and (v) monthly
updates of its 2009 Monthly Business Plan.”
 
3.
A new Section 7.4 is added to the Existing Note Purchase Agreement.  Such
Section 7.4 shall read in full as follows:

 
“7.4     Bi-Weekly Telephone Updates.
 
Every other Monday, beginning on April 6, 2009, one or more Responsible Officers
will participate in a conference call with each holder of Notes to provide them
with a detailed update concerning the business operations and most recent
financial results of the Company (each, a “Periodic Conference Call”).  The
Company will provide each holder of Notes with sufficient time during each
Periodic Conference Call to have its questions answered.  Each Periodic
Conference Call will be held at 10:00 a.m. (prevailing New York City time)
unless the Company and each holder of Notes agree otherwise.”

 
Exhibit D-1

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

 

4.
Section 8.1 of the Existing Note Agreement is hereby amended and restated as
follows:

 
“8.1.    *****OMITTED****
 
(a)      ************************************************************
*****************
*****************

(b)     ***********************
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Exhibit D-2

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

 

****************************OMITTED*****************************************************
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(c)           ****************************************************************************
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(d)           ****************************************************************************
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5.
Section 8.2 of the Existing Note Agreement is hereby amended and restated as
follows:

 
“8.2.       Optional Prepayments.
 
The Company may, at its option, upon notice as provided below, prepay at any
time all, or from time to time any part of, the Notes (without regard to series)
in an amount not less than $500,000 in the aggregate in the case of a partial
prepayment, at 100% of the principal amount so prepaid, together with interest
accrued to the date of prepayment.  The Company will give each holder of Notes
to be prepaid written notice of each optional prepayment under this Section 8.2
not less than 30 days and not more than 60 days prior to the date fixed for such
prepayment.  Each such notice shall specify such date, the aggregate principal
amount of the Notes to be prepaid on such date, the principal amount of each
Note held by such holder to be prepaid (determined in accordance with Section
8.4), and the interest to be paid on the prepayment date with respect to such
principal amount being prepaid.”

 
Exhibit D-3

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

 

6.
Section 8.4 of the Existing Note Agreement is hereby amended and restated as
follows:

 
“8.4        Allocation of Partial Prepayments.
 
In the case of each partial prepayment of the Notes, the principal amount of the
Notes to be prepaid shall be allocated among all of the Notes (without regard to
series) at the time outstanding in proportion, as nearly as practicable, to the
respective unpaid principal amounts thereof not theretofore called for
prepayment.”
 
7.
Section 8.5 of the Existing Note Agreement is hereby amended and restated as
follows:

 
“8.5        Maturity; Surrender, etc.
 
Without limiting and subject to the obligation of the Company to pay the
applicable Make-Whole Amount to the holders of the Notes pursuant to Section
12.1, in the case of each prepayment of Notes pursuant to this Section 8, the
principal amount of each Note to be prepaid shall mature and become due and
payable on the date fixed for such prepayment, together with interest on such
principal amount accrued to such date.  From and after such date, unless the
Company shall fail to pay such principal amount when so due and payable,
together with the interest as aforesaid, interest on such principal amount shall
cease to accrue.  Any Note paid or prepaid in full shall be surrendered to the
Company and canceled and shall not be reissued, and no Note shall be issued in
lieu of any prepaid principal amount of any Note.”
 
8.
Section 8.7 of the Existing Note Agreement is hereby amended by deleting the
phrase “to be prepaid pursuant to Section 8.1(b) or Section 8.2” in the
definitions of “Called Principal” and “Settlement Date” therein and replacing it
with the phrase “is paid after January 15, 2010 as provided in Section 9.9”, and
by amending and restating the definition of “Remaining Scheduled Payments” set
forth therein to read in its entirety as follows:

 
““Remaining Scheduled Payments” means, means, with respect to the Called
Principal of any Note, all payments of such Called Principal (determined as if
the maturity date with respect to (i) the Series B Notes were June 30, 2011 and
(ii) the Series C Notes were June 30, 2014) and interest thereon (determined as
though the per annum rates in effect with respect to the Notes were the rates in
effect immediately prior to the effectiveness of the Third Amendment) that would
be due after the Settlement Date with respect to such Called Principal if no
payment of such Called Principal were made prior to its scheduled due date,
provided that if such Settlement Date is not a date on which interest payments
are due to be made under the terms of the Notes, then the amount of the next
succeeding scheduled interest payment will be reduced by the amount of interest
accrued (at the per annum rates noted above) to such Settlement Date and
required to be paid on such Settlement Date pursuant to Section 9.9 or Section
12.1.”
 
9.
New Sections 9.8, 9.9 and 9.10 are hereby added to the Existing Note Agreement
immediately following Section 9.7 thereof to read in their entirety as follows:

 
“9.8        ***********OMITTED**********

 
Exhibit D-4

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

 
 
(a)           *****************************************************************************
******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
**********************************************************************
 
(b)           *****************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
********************************************************************
 
9.9         Success Fee.

On the date (the “Payoff Date”) upon which the Debt evidenced by all of the
Notes is paid in full (the “Payoff”), the Company shall pay to each holder of
the Notes an amount equal to the product of (a) the Applicable Percentage
corresponding to the time period in which the Payoff Date shall occur and (b)
the outstanding principal amount of the Notes held by such holder on the day
immediately prior to the Payoff Date (the “Success Fee”).
 
Payoff Date Occurring:
 
Applicable Percentage
 
On or before July 31, 2009
    0.00 %
August 1, 2009 to August 31, 2009
    0.25 %
September 1, 2009 to September 30, 2009
    0.50 %
October 1, 2009 to October  31, 2009
    1.00 %
November 1, 2009 and thereafter
    1.50 %

 
Exhibit D-5

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

 
 
Without limiting and subject to the obligation of the Company to pay the
applicable Make-Whole Amount to the holders of the Notes pursuant to Section
12.1 and the last sentence of this Section 9.9, the Company shall pay the
following amounts in addition to the Success Fee to the holders of the Notes on
the Payoff Date in lieu of any Make-Whole Amount which may be payable on or
prior to January 15, 2010: (i) to each holder of the Series B Notes, an amount
equal to (a) the product of (x) $375,000 and (y) a fraction, the numerator of
which is the outstanding principal amount of the Series B Notes held by such
holder on the day immediately prior to the Payoff Date and the denominator of
which is the outstanding principal amount of all Series B Notes on such day and
(ii) to each holder of the Series C Notes, an amount equal to (a) the product of
(x) $750,000 and (y) a fraction, the numerator of which is the outstanding
principal amount of the Series C Notes held by such holder on the day
immediately prior to the Payoff Date and the denominator of which is the
outstanding principal amount of all Series C Notes on such day.  Notwithstanding
the foregoing, it is agreed and understood that any and all payments on any Note
made after January 15, 2010 shall be made together with accrued and unpaid
interest and Make-Whole Amount determined for the date of payment with respect
to the principal amount paid.

9.10       ***********OMITTED***************

******************************************************************
*****************
*******************************************************
***********************************
******************

(a)           *****************************************************************************
************************************
 
(i)           **********************************************************************
********************************
 
(ii)           **********************************************************************
***************************
 
(iii)           **********************************************************************
******************
 
(iv)           **********************************************************************
*************************
 
 
(v)           **********************************************************************
**************************************
 
(vi)           ****************************************************************
 
(vii)           *********************************************************************
**********************************************************************************

 
Exhibit D-6

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

 
 
(viii)                      ****************************************************************
****************************************************************************OMITTED*
*************************************************************************************
*************************************************************************************
*************************************************************************************
*************************************************************************************
*************************************************************************************
*************************************************************************************
*************************************************************************************
*************************************************************************************
*************************************************************************************
*************************************************************************************
*********
 
(ix)           ***********************************************************************
*************************************************************************************
**********
 
(b)           ******************************************************************************
************
 
(i)           ***********************************************************************
*******************
 
(ii)           ***********************************************************************
*****************
 
(iii)          ***********************************************************************
***********
 
(iv)          ***********************************************************************
*******************
 
(v)           ***********************************************************************
************************************
 
(vi)          **********************************************************************
**
 
(vii)          **********************************************************************
**********************************************************************************

 
Exhibit D-7

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

 
 
(viii)       ***********************************************************************
************************************************************************************
************************************************************************************
***************************************OMITTED*************************************
************************************************************************************
************************************************************************************
************************************************************************************
************************************************************************************
************************************************************************************
************************************************************************************
************************************************************************************
************************************************************************************
********************
 
(ix)          ***********************************************************************
***********************************************
*************************************
*******

10.
Section 10.1 is hereby amended and restated in its entirety to read as follows:

 
“10.1     Cumulative Consolidated EBITDAR; Capital Expenditures.

(a)         Cumulative Consolidated EBITDAR.  The Company will not permit the
result of (i) Consolidated EBITDA plus, to the extent deducted in determining
such Consolidated EBITDA, rent paid (“EBITDAR”) for any period beginning April
6, 2009 and ending on a date set forth in the table below, plus, (ii) to the
extent deducted in determining such EBITDAR, restructuring charges as recorded
in the Company’s financial statements, as determined on a consolidated basis in
accordance with GAAP,
************OMITTED*************************************************************************plus,
(iv) to the extent deducted in determining such EBITDAR, any impairment of
long-lived assets, goodwill, intangibles or any of the shares of the stock of
the Dana Entities; and (v) plus or minus any translation gains or losses on the
Company’s statement of operations due to changes in foreign currency exchange
rates, all as determined on a consolidated basis in accordance with GAAP (for
any period such result is referred to, “Cumulative Consolidated EBITDAR” for
such period), to be less than the amount set forth opposite such date (all
amounts shown in parentheses indicate negative numbers):
 
If Such Date is During the Period From
April 6, 2009 Through:
 
Minimum Cumulative
Consolidated EBITDAR
 
July 5, 2009
  $ (2,000,000 )
October 4, 2009
  $ (500,000 )
December 31, 2009
  $ 2,000,000  

 
Exhibit D-8

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

 
 
(b)           Capital Expenditures.  Other than as set forth in Schedule 10.1(b)
to the Fourth Amendment, the Company and its Subsidiaries shall not incur
Capital Expenditures in an aggregate amount in excess of $2,000,000 during the
period from the Fourth Amendment Effective Date.”

11.
Section 10.2 is hereby amended and restated in their entirety to read as
follows:

 
“10.2.  Adjusted Consolidated Net Worth; Liquidity.
 
(a)           Adjusted Consolidated Net Worth.  The Company will not permit the
sum of Adjusted Consolidated Net Worth as of the last day of any fiscal quarter
noted in the table below plus the aggregate amount of any impairment of
long-lived assets, goodwill, intangibles or any of the shares of the stock of
the Dana Entities taken year-to-date through such fiscal quarter and reflected
in such Adjusted Consolidated Net Worth, to be less than the amount set forth
for such day in such table:

Date
 
Minimum Levels
 
July 5, 2009
  $ 55,000,000  
October 4, 2009
  $ 50,000,000  
December 31, 2009
  $ 45,000,000  

(b)           *********************OMITTED************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
**********************************:

 
Exhibit D-9

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

 
 
**********************
**********************
*********
**************
**************
**************
*****************
**************
**OMITTED**
**************
**************
**************
**************
**************
**************
**************
**************
**************
**************
**************
**************
**************

 
********OMITTED********************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*******************************************************************************************
*********
 
************************************************************************************
************************************************************************************
************************************************************************************
************************************************************************************
************************************************************************************
************************************************************************************
************************************************************************************
************************************************************************************
************************************************************************************
************************************************************************************
*
 
12.
Section 10.3 of the Existing Note Agreement is hereby amended and restated as
follows:

“10.3        Indebtedness, Guaranties, Etc.

The Company will not, and will not permit any Subsidiary to, directly or
indirectly, create, incur, assume, guarantee, agree to purchase or repurchase or
provide funds in respect of, or otherwise be or become liable with respect to
any Debt other than:

(a)           Permitted Senior Secured Debt;

 
Exhibit D-10

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

 
 
(b)           obligations to the Lenders or their Affiliates under credit card
programs in an aggregate amount for all such Persons not in excess of One
Million Dollars ($1,000,000) through April 23, 2009 and in excess of five
hundred thousand dollars ($500,000) thereafter;

(c)           Debt, other than Debt permitted under clauses (a) and (b) of this
Section 10.3, whether secured or unsecured, in an aggregate amount not to exceed
two million five hundred thousand dollars ($2,500,000); and

(d)           Any Guaranty by the Company or any Subsidiary Guarantor of Debt
incurred by the Company or any Subsidiary Guarantor that is permitted under
clauses (a), (b) or (c) of this Section 10.3.”

13.
Section 10.4 of the Existing Note Agreement is hereby amended and restated as
follows:

“10.4
Liens.

The Company will not, and will not permit any Subsidiary to, permit to exist,
create, assume or incur, directly or indirectly, any Lien on its properties or
assets (including, without limitation, any Lien on real property or improvements
thereon), whether now owned or hereafter acquired, except:

(a)           Liens on property and Capital Leases that are disclosed on
Schedule 10.4 to the Fourth Amendment;

(b)           Liens in favor of the Collateral Agent for the equal and ratable
benefit of the Lenders and the holders of Notes securing Permitted Senior
Secured Debt;

(c)           Liens for taxes, assessments or governmental charges not yet due
and payable or the payment of which is not at the time required under Section
9.4;

(d)           Liens incurred or deposits made in the ordinary course of business
in connection with worker's compensation, unemployment insurance and other types
of social security or to secure the performance of tenders, statutory
obligations, surety and appeal bonds, bids, leases, performance and return of
money bonds and other similar obligations (exclusive of obligations for the
payment of borrowed money) for sums not yet due or being contested in good faith
and by appropriate proceedings promptly initiated and diligently conducted, if
such reserve or other appropriate provision, if any, as shall be required by
GAAP shall have been made therefor;

 
Exhibit D-11

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

 

(e)           Liens incidental to the conduct of business or the ownership of
properties and assets (including landlords’, lessors’, carriers’, operators’,
warehousemen’s, mechanics’, materialmen’s and other similar Liens) incurred in
the ordinary course of business and not in connection with the borrowing of
money;

(f)          encumbrances in the nature of leases, subleases, zoning
restrictions, easements, rights of way, minor survey exceptions and other rights
and restrictions of record on the use of real property and defects in title
arising or incurred in the ordinary course of business, which, individually and
in the aggregate, do not materially detract from the value of such property or
assets subject thereto or materially impair the use of the property or assets
subject thereto by the Company or such Subsidiary; and

(g)         Liens resulting from extensions, renewals or replacements of Liens
permitted by paragraph (a), provided that (i) there is no increase in the
principal amount or decrease in maturity of the Debt secured thereby at the time
of such extension, renewal or replacement, (ii) any new Lien attaches only to
the same property theretofore subject to such earlier Lien and (iii) immediately
after such extension, renewal or replacement no Default or Event of Default
would exist.”

14.
Section 10.5 of the Existing Note Agreement is hereby amended and restated as
follows:

 
“10.5.    Sale of Assets.
 
The Company will not, and will not permit any Subsidiary to, sell, lease,
transfer or otherwise dispose of, including by way of merger, any property,
including capital stock of Subsidiaries (collectively a “Disposition”), in one
or a series of transactions, to any Person, other than (a) Dispositions of
inventory and equipment in the ordinary course of business and
***********OMITTED**************************************
******************************************** .”
 
15.
Section 10.6 of the Existing Note Agreement is hereby amended and restated as
follows:

“10.6     Mergers; Acquisitions; Liquidations.
 
The Company and its Subsidiaries shall not:
 
(a)           be a party to any consolidation, reorganization (including without
limitation those types referred to in Section 368 of the United States Internal
Revenue Code of 1986, as amended), recapitalization, “stock-swap” or merger; or
 
(b)           liquidate or dissolve or take any action with a view toward
liquidation or dissolution; or
 
(c)           purchase all or a substantial part of the Capital Stock or
property of any Person or business enterprise.”

 
Exhibit D-12

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

 

16.
Section 10.7 of the Existing Note Agreement is hereby amended and restated as
follows:

“10.7  Restricted Payments.
 
The Company will not, and will not permit any of its Subsidiaries to, declare or
make, or incur any liability to declare or make, any Restricted Payments.”

17.
Section 10.9 of the Existing Note Agreement is hereby amended and restated as
follows:

 
“10.9
Limitations on Investments, Loans and Advances.

The Company shall not, and shall not permit any of its Subsidiaries to, make or
permit to exist any investment in, or make, accrue or permit to exist loans or
advances of money (any such investment, loan or advance an “Investment”), to any
Person, through the direct or indirect lending of money, holding of securities
or otherwise, except for:

(a)           Investments in the Company or any Subsidiary Guarantor;
 
(b)           Investments in Subsidiaries with operations outside the United
States that have been made prior to the Fourth Amendment Effective Date and were
permitted to be made and exist under the terms of the Existing Financing
Documents (as defined in the Fourth Amendment); or
 
(c) promissory notes, trade receivables and other similar non-cash consideration
received by the Company and its Subsidiaries in connection with sales of
inventory in the ordinary course of business.”

18.
Section 10.14 of the Existing Note Agreement is hereby amended and restated as
follows:

“10.14.  Commitments under Credit Agreement.
 
(a)         The Company will not at any time permit the commitments of the
Lenders under the Credit Agreement to be less than $50,000,000 in the aggregate;
provided that such commitments may be reduced in connection with Sections
8.1(b), 8.2 and 10.17.
 
(b)        The Company will not any time permit the conditions to borrowing
under the Credit Agreement to be modified (other than to make such conditions
less restrictive on the Company) from the conditions set forth in the Credit
Agreement on the date hereof.”
 
19.
Section 10.15 of the Existing Note Agreement is hereby amended and restated as
follows:

 
“10.15.  [Intentionally Omitted.]”

 
Exhibit D-13

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

 

20.
A new Section 10.17 is hereby added to the Existing Note Agreement immediately
following Section 10.16 thereof to read in its entirety as follows:

 
“Section 10.17  Payment of Debt.
 
The Company will not, and will not permit any of its Subsidiaries to, pay,
defease or otherwise satisfy (in whole or in part) in any manner (whether by
set-off, exercise of remedies or otherwise), the principal amount of any Debt
that results in a permanent reduction of the committed amount of such Debt
(other than the Debt referred to in Section 10.3(b) available to the Company,
unless the principal of each Note of each Series is prepaid concurrently with
such principal payment, defeasance or other satisfaction, such that each holder
of Notes receives its pro rata share of the total amount of Debt then being
permanently reduced (calculated based on the current principal amount of the
specific facility being paid, defeased or otherwise satisfied and the principal
amount of all Permitted Senior Secured Debt being prepaid that results in a
permanent reduction of the Commitments), together with accrued and unpaid
interest in accordance with Section 8.2 of the Existing Note Agreement.”
 
21.
Schedule B of the Existing Note Purchase Agreement is hereby amended as follows:

 
(a)           New definitions of “2009 Monthly Business Plan”, “2009A Amendment
to Loan Documents”, ********OMITTED************* *********************** *******
****************** ******** **********************
*******************“Cumulative Consolidated EBITDAR”,
“EBITDAR”,*****OMITTED******************* ********* *****************
******************* *** “Fourth Amendment”, “Fourth Amendment Effective Date”,
*******OMITTED*************************** *******************
****************************** ************
************************************“Payoff”, “Payoff Date”, “Periodic
Conference Call”,***OMITTED************ ******** **********************
********** *************** ************** *****************and “Success Fee” are
hereby added in their proper alphabetical order as follows:
 
“2009 Monthly Business Plan” means the Company’s 2009 Monthly Business Plan
delivered to the holders of the Notes and the Lenders in writing on the Fourth
Amendment Effective Date.
 
“2009A Amendment to Loan Documents” means that certain 2009A Amendment to Loan
Documents, dated as of the Fourth Amendment Effective Date, among the Company,
the Subsidiaries of the Company named as guarantors therein, JPMorgan Chase
Bank, N.A., as Administrative Agent, and the other lenders party thereto.
 
“**OMITTED**” is defined in Section 8.1(b).
 
“**OMITTED**” is defined in Section 10.2(b).
 
“**OMITTED**” is defined in Section 10.2(b).
 
“**OMITTED**” is defined in Section 8.1(b).
 
“**OMITTED**” is defined in Section 9.8(a).

 
Exhibit D-14

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

 
 
“Cumulative Consolidated EBITDAR” is defined in Section 10.1(b).
 
“EBITDAR” is defined in Section 10.1(a).
 
“**OMITTED**”
 
“**OMITTED**”” is defined in Section 9.10(a).
 
“**OMITTED**” is defined in Section 9.10(a).
 
“**OMITTED**” is defined in Section 9.8(b).
 
 
“Fourth Amendment” means the Fourth Amendment to Note Purchase Agreement dated
as of April 1, 2009 by and among the Company and the holders of the Notes, as
amended, restated or otherwise modified from time to time.

 
“Fourth Amendment Effective Date” means April 1, 2009.
 
“**OMITTED**” is defined in Section 10.2(b).
 
“**OMITTED**” is defined in Section 10.2(b).
 
“**OMITTED**”***********************************************************************
********************************************************************************************
************************************************************************************
 
“**OMITTED**” is defined in Section 10.2(b).
 
“**OMITTED**” is defined in Section 8.1(b).
 
“**OMITTED**” is defined in Section 9.8(b).
 
“Payoff” is defined in Section 9.9.
 
“Payoff Date” is defined in Section 9.9.
 
“Periodic Conference Call” is defined in Section 7.4.
 
“**OMITTED**” is defined in Section 8.1(b).

 
Exhibit D-15

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

 
 
“**OMITTED**”
 
“**OMITTED**”is defined in Section 9.10(b).
 
“**OMITTED**” is defined in Section 9.10(b).
 
“**OMITTED**” is defined in Section 8.1(b).
 
“Success Fee” is defined in Section 9.9.
 
(b)           The definitions of “Credit Agreement”, “Dana Payment” and
“Permitted Senior Secured Debt” are hereby amended and restated in full as
follows:
 
“Credit Agreement” means the Amended and Restated Loan Agreement, dated as of
April 6, 2007, among the Company, the Subsidiaries of the Company named as
guarantors therein, JPMorgan Chase Bank, N.A., as Administrative Agent, and the
other lenders party thereto, as amended by the 2009A Amendment to Loan
Documents, dated as of the Fourth Amendment Effective Date, among the Company,
the Subsidiaries of the Company named as guarantors therein, JPMorgan Chase
Bank, N.A., as Administrative Agent, and the other lenders party thereto, as
such agreement may be hereafter amended, modified, restated, supplemented,
replaced, refinanced, increased or reduced from time to time, and any successor
credit agreement or similar facility.
 
“Dana Payment” means any cash payment received (including by way of setoff) by
the Company or any Subsidiary (or otherwise paid in accordance with the
instructions of the Company or any Subsidiary) (i) under the terms of any one or
more of the Dana Supply Agreements upon any termination or rejection of such
agreement or agreements in connection with or arising out of the Dana Bankruptcy
Proceedings, (ii) constituting cash proceeds (including by way of setoff) from
the sale, disposition, transfer or liquidation of any interest in any claim of
the Company or any Subsidiary for damages arising out of such termination or
rejection, or (iii) constituting cash proceeds from the sale, disposition,
transfer or liquidation of any and all Capital Stock of Dana Holding
Corporation.
 
“Permitted Senior Secured Debt” means the aggregate outstanding Principal
Exposure (as such term is defined in the Collateral Sharing Agreement) of all
Creditors, together with accrued and unpaid interest thereon, as of the Fourth
Amendment Effective Date.
 
(c)           The definition of “Retained Dana Payment” is hereby deleted in its
entirety.

 
Exhibit D-16

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

 

EXHIBIT E

MATTERS TO BE COVERED BY GENERAL COUNSEL OPINION

 
1.
Due organization, valid existence and good standing of Obligors.

 
 
2.
Due authorization, execution and delivery of the Fourth Amendment Documents.

 
 
3.
Execution and delivery of the Fourth Amendment Documents does not cause any
conflict with agreements.

 
 
Exhibit E

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

 

EXHIBIT F

MATTERS TO BE COVERED BY OUTSIDE COUNSEL OPINION

 
1.
The Financing Documents (as amended by the Fourth Amendment Documents),
constitute the legal, valid and binding obligations of the Obligors, enforceable
in accordance with their terms.

 
 
2.
Execution and delivery of the Fourth Amendment Documents does not cause any
conflict with laws or judgments or the imposition of any Liens.

 
 
3.
No consent, approval, notification or filing required with any Governmental
Authority in connection with the execution, delivery and performance of the
Financing Documents.

 
 
4.
Validity, attachment and perfection of security interests created under Security
Documents.

 
 
5.
No state or local recording tax, stamp tax, documentary tax or other fees, taxes
or governmental charges required to be paid in connection with transactions
contemplated by the Fourth Amendment Documents other than nominal filing fees.

 
 
Exhibit F

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

 

SCHEDULE 10.1(b)

CAPITAL EXPENDITURES

“**OMITTED**”

 
Schedule 10.1(b)

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

 

SCHEDULE 10.16(b)

LEASED LOCATIONS/LANDLORD LIEN WAIVERS

 
(i)
7307 and 7337 South Revere Parkway, Centennial, Colorado;

 
(ii)
160 East Via Verde Road, San Dimas, California;

 
(iii)
10901 Malcolm McKinley Drive, Tampa, Florida;

 
(iv)
2320 W. Peoria Avenue, Bldg. D 133, Phoenix, Arizona; and

 
(v)
7 Sterling Avenue, Billerica, Massachusetts.

 
 
Schedule 10.16(b)

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