Document:

Exhibit
10.26

 

AMENDMENT
NO. 1

TO STOCK PURCHASE AGREEMENT

 

AMENDMENT
NO. 1 (this “Amendment”), dated as of August 31, 2006, to the STOCK
PURCHASE AGREEMENT, dated as of May 17, 2002 (the “Stock Purchase Agreement
“) by and among TRIMAS CORPORATION, a Delaware corporation, METALDYNE CORPORATION,
a Delaware corporation, and HEARTLAND INDUSTRIAL PARTNERS, L.P. Capitalized terms
used but not otherwise defined herein shall have the respective meanings
ascribed thereto in the Stock Purchase Agreement.

 

R  E  C  I  T
A  L  S :

 

In consideration of the
premises and mutual agreements contained herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

A  G  R  E  E
M  E  N  T :

 

The parties
agree as follows:

 

1.             Amendments
to Section 1.01. (a) Section 1.01 of the Stock Purchase
Agreement is hereby amended by deleting clause (x) of the definition of “Company
Liabilities” and replacing such clause in its entirety with the following:

 

“(x)          all
Liabilities of the Company or any Company Subsidiary not otherwise covered in
the preceding clauses (i) through (ix) or in Section 9.01(c) or Section 9.02
and 42.01% of all other Liabilities not so covered that are not Liabilities of
the Company or the Company Subsidiaries, including, without limitation, any
Liabilities arising from events occurring prior to the Closing not associated
or attributable to either the present or former business of the Company or the
Company Subsidiaries, on the one hand, or the present or former business of
Parent or any of its Subsidiaries, on the other.”

 

(b) Section 1.01
of the Stock Purchase Agreement is hereby amended by deleting clause (vi) of
the definition of “Parent Liabilities” and replacing such clause in its entirety
with the following:

 

“(vi)        all
Liabilities not otherwise covered in the preceding clauses (i) through (v) or
in Section 9.01(c) or Section 9.02 of Parent or any of its Subsidiaries (other
than the Company or the Company Subsidiaries) and 57.99% of all other
Liabilities not so covered that are not Liabilities of Parent or any of its
Subsidiaries

 

 

(other than the Company or the Company
Subsidiaries), including, without limitation, any Liabilities arising from
events occurring prior to the Closing not associated or attributable to either
the present or former business of the Company or the Company Subsidiaries, on
the one hand, or the present or former business of Parent or any of its
Subsidiaries (other than the Company or the Company Subsidiaries), on the
other.”

 

2.             Amendment to Section 7.08(b).
Section 7.08(b) of the Stock Purchase Agreement is hereby
amended by deleting clause (iii) thereof and replacing such clause in its
entirety with the following:

 

“(iii)        Allocable
Taxes. To the extent that any income Taxes to which a Tax Return described in
Section 7.08(a) relates are attributable to any income or gain resulting from
any deferred intercompany transactions or pursuant to Treas. Reg. 1.1502-13
(and any predecessor, successor or similar provision) or any corresponding
provision(s) of state law and to the Company or any of the Company Subsidiaries
ceasing to be a member of a consolidated, combined or unitary group that
includes Parent or any of its Affiliates (other than the Company or any of the
Company Subsidiaries), those income Taxes shall be borne  57.99% by Parent and 42.01% by the Company. The
procedures for payment by one party to the other provided in this Section
7.08(b) shall govern the payments of amounts determined under this Section 7.08(b)(iii).”

 

3.             Provisions of General
Application; No Prejudice. Except as otherwise expressly
provided by this Amendment, all of the terms, conditions and provisions to the
Stock Purchase Agreement remain unaltered. The Stock Purchase Agreement and
this Amendment shall be read and construed as one agreement. If any of the
terms of this Amendment shall conflict in any respect with any of the terms of
the Stock Purchase Agreement, the terms of this Amendment shall be controlling.
This Amendment is without prejudice to any pending issues or disputes or
unknown current situations as to which the amended language above relates.

 

4.             Counterparts; Effectiveness;
Captions. This Amendment may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument. The captions
of this Amendment are included for convenience of reference only, do not
constitute a part hereof and shall be disregarded in the construction hereof. This
Amendment shall become effective only upon the occurrence of the merger
contemplated by the Agreement and Plan of Merger dated as of August 31, 2006 to
which Metaldyne Corporation is a party.

 

5.             GOVERNING LAW. THE VALIDITY, CONSTRUCTION AND EFFECT OF THIS
AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND

 

2

 

ENFORCED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO THE
PRINCIPLES OF CONFLICTS OF LAW OF SUCH STATE.

 

6.             Entire
Agreement. This Amendment constitutes the full and entire
understanding and agreement between the parties hereto with respect to the
subject matter hereof and supersedes all prior negotiations, understandings and
agreements between such parties in respect of such subject matter.

 

3

 

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

 

 

	
   

  	
  TRIMAS
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HEARTLAND
  INDUSTRIAL PARTNERS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:
  Heartland Industrial Associates L.L.C.,

  
	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  METALDYNE
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

4Exhibit 10.27

 

Monitoring Agreement

 

ADVISORY
AGREEMENT (this “Agreement”), dated as of June 6, 2002, between TriMas
Corporation, a Delaware corporation (the “Company”), and Heartland Industrial
Group LLC, a Delaware limited liability company (“Heartland”).

 

WHEREAS,
Heartland, by and through itself, its affiliates and their respective officers,
employees and representatives, has expertise in the areas of finance, strategy,
investment and acquisitions relating to the business of the Company; and

 

WHEREAS, the
Company desires to avail itself, for the term of this Agreement, of the
expertise of Heartland in the aforesaid areas and Heartland wishes to provide
the services to the Company as herein set forth;

 

NOW,
THEREFORE, in consideration of the foregoing recitals and the covenants and
conditions contained herein, the parties hereto agree as follows:

 

1.             Appointment. The Company
hereby appoints Heartland to render the advisory and consulting services
described in Section 2 hereof for the term of this Agreement.

 

2.             Services. Heartland hereby
agrees that, during the term of this Agreement, it shall render to the Company,
by and through itself and its officers, employees and representatives as
Heartland in its sole discretion shall designate from time to time, advisory
and consulting services in relation to the affairs of the Company and its subsidiaries,
including, without limitation, (i) advice with respect to the general developments
in the Company’s industry and the manner in which those developments may impact
the Company; (ii) advice in designing financing structures and advice regarding
relationships with the Company and its subsidiaries’ lenders, bankers and lessors;
(iii) advice regarding the structure and timing of public and private offerings
of debt and equity securities of the Company and its subsidiaries and other
financings (including capital lease financings); (iv) advice regarding property
dispositions or acquisitions; and (v) such other advice directly related or
ancillary to the above advisory services as may be reasonably requested by the
Company.

 

3.             Fees. (a) In consideration
of the services contemplated by Section 2, for the term of this Agreement, the
Company and its successors agree to pay to Heartland an annual fee (the “Monitoring
Fee”) equal to (x) a fee of $277,777.78 for the period from the date hereof
through June 30, 2002, payable on the date hereof; (y) $2,000,000 in cash for
the balance of calendar year 2002, payable in quarterly installments on July 1
and October 1; and (z) $4,000,000 in cash thereafter, payable in quarterly installments
in advance on January 1, April 1, July 1 and October 1 of each year through the
date (the “Termination Date”) on which Heartland and its affiliates (including,
without limitation, the “Heartland Entities” referred to in the shareholders’
agreement entered into on the date hereof) hold, directly or indirectly,
beneficial ownership of less than 10% of

 

 

the common
equity interests of the Company acquired on the Closing Date, or such earlier date
as the Company and Heartland shall agree. Any Monitoring Fee for the last
calendar year of this Agreement shall be prorated for the period of such year
ending on the Termination Date. The “Closing Date” shall mean the date of the
closing of the acquisition contemplated by the Stock Purchase Agreement (the “Stock
Purchase Agreement”) dated as of May 17, 2002 among Heartland, the Company and
Metaldyne Corporation.

 

(b)           Upon the Closing Date, the Company
shall pay to Heartland or its designees a fee for services rendered in
connection with the structuring of the Stock Purchase Agreement and the
transactions contemplated thereby (the “Transactions”) in the amount of
$9,750,000 and will reimburse Heartland and its affiliates for their reasonable
out-of-pocket expenses incurred in connection with Transactions.

 

(c)           In addition, during the term of this
Agreement, the Company shall pay to Heartland or its designees a transaction
fee in connection with the consummation of each acquisition, divestiture or
financing (including capital lease financings) by the Company or any of its
subsidiaries (but excluding sales and purchases of personal property in the
ordinary course of business) in an amount equal to 1% of the aggregate value of
each such transaction, for its services in negotiating, analyzing, arranging
financing and executing such acquisitions, divestitures and financings.

 

(d)           To the extent required by any debt
financing of the Company or its subsidiaries, any fees or Out-of-Pocket
Expenses (as defined below) payable hereunder shall be deferred until the
earlier of the (i) liquidation or dissolution of the Company, and (ii) payment
of such deferred amounts is permitted under such debt financing. Any deferred
fees and Out-of-Pocket Expenses shall bear interest at a rate of ten percent (10%)
per annum, compounded annually, from the date deferred until paid.

 

4.             Reimbursements. In addition
to the fees payable pursuant to this Agreement, the Company shall pay directly
or reimburse Heartland for its Out-of-Pocket Expenses. For the purposes of this
Agreement, the term “Out-of-Pocket Expenses” shall mean the reasonable
out-of-pocket costs and expenses reasonably incurred by Heartland or its
affiliates in connection with the services rendered hereunder in pursuing, or otherwise
related to, the business of the Company, including, without limitation, (i)
fees and disbursements of any independent professionals and organizations,
including independent accountants, outside legal counsel or consultants, (ii)
costs of any outside services or independent contractors such as financial
printers, couriers, business publications, on-line financial services or
similar services and (iii) transportation, per diem costs, word processing
expenses or any similar expense not associated with its ordinary operations.
All reimbursements for Out-of-Pocket Expenses shall be made promptly upon or as
soon as practicable after presentation by Heartland to the Company of a written
statement thereof.

 

5.             Indemnification. The Company
will indemnify and hold harmless Heartland, its affiliates and their respective
partners (both general and limited), members

 

 

(both managing
and otherwise), officers, directors, employees, agents and representatives (each
such person being an “Indemnified Party”) from and against any and all losses, claims,
damages and liabilities, whether joint or several (the “Liabilities”), related
to, arising out of or in connection with the advisory and consulting services
contemplated by this Agreement or the engagement of Heartland pursuant to, and
the performance by Heartland of the services contemplated by, this Agreement,
whether or not pending or threatened, whether or not an Indemnified Party is a
party, whether or not resulting in any liability and whether or not such
action, claim, suit, investigation or proceeding is initiated or brought by the
Company. The Company will reimburse any Indemnified Party for all reasonable
costs and expenses (including reasonable attorneys’ fees and expenses) as they are
incurred in connection with investigating, preparing, pursuing, defending or
assisting in the defense of any action, claim, suit, investigation or
proceeding for which the Indemnified Party would be entitled to indemnification
under the terms of the previous sentence, or any action or proceeding arising
therefrom, whether or not such Indemnified Party is a party thereto. The
Company will not be liable under the foregoing indemnification provision with
respect to any Indemnified Party, to the extent that any loss, claim, damage,
liability, cost or expense is determined by a court, in a final judgment from
which no further appeal may be taken, to have resulted primarily from the gross
negligence or willful misconduct of Heartland. If an Indemnified Party is
reimbursed hereunder for any expenses, such reimbursement of expenses shall be
refunded to the extent it is finally judicially determined that the Liabilities
in question resulted primarily from the gross negligence or willful misconduct
of Heartland.

 

6.             Accuracy of Information. The
Company shall furnish or cause to be furnished to Heartland such information as
Heartland believes appropriate to its monitoring services hereunder and to the
ownership by affiliates of Heartland of equity interests of the Company (all
such information so furnished being the “Information”). The Company recognizes
and confirms that Heartland (i) will use and rely primarily on the Information
and on information available from generally recognized public sources in performing
the services contemplated by this Agreement without having independently verified
the same, (ii) does not assume responsibility for the accuracy or completeness
of the Information and such other information and (iii) is entitled to rely
upon the Information without independent verification.

 

7.             Term. This Agreement shall
be effective as of the date hereof and shall continue until the Termination
Date, provided that Section 4 shall remain in effect with respect to
Out-of-Pocket Expenses incurred prior to the Termination Date. The provisions
of Sections 5 shall survive the termination of this Agreement.

 

8.             Permissible Activities.
Subject to applicable law, nothing herein shall in any way preclude Heartland,
its affiliates or their respective partners (both general and limited), members
(both managing and otherwise), officers, directors, employees, agents or
representatives from engaging in any business activities or from performing services
for its or their own account or for the account of others, including for
companies that may be in competition with the business conducted by the
Company.

 

 

9.             Miscellaneous. (a) No
amendment or waiver of any provision of this Agreement, or consent to any
departure by either party hereto from any such provision, shall be effective
unless the same shall be in writing and signed by all of the parties hereto.
Any amendment, waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given. The waiver by any party of any breach
of this Agreement shall not operate as or be construed to be a waiver by such
party of any subsequent breach.

 

(b)           Any notices or other communications
required or permitted hereunder shall be sufficiently given if delivered
personally or sent by facsimile, Federal Express, or other overnight courier, addressed
as follows or to such other address of which the parties may have given notice:

 

	
  If to
  Heartland:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  55 Railroad
  Avenue

  
	
   

  	
   

  	
  Greenwich,
  CT 06830

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention: 

  	
  David
  Stockman

  
	
   

  	
   

  	
  Facsimile:

  	
  (203)
  861-2722

  
	
   

  	
   

  	
   

  
	
  If to the
  Company:

  	
   

  	
  TriMas Corporation

  
	
   

  	
   

  	
  39400 North
  Woodward Avenue

  
	
   

  	
   

  	
  Suite 130

  
	
   

  	
   

  	
  Bloomfield
  Hills, MI 48304

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention: 

  	
  General
  Counsel

  
	
   

  	
   

  	
  Facsimile:

  	
  (734)
  207-6797

  

 

Unless
otherwise specified herein, such notices or other communications shall be
deemed received (i) on the date delivered, if delivered personally or sent by
facsimile, and (ii) one business day after being sent by Federal Express or
other overnight courier.

 

(c)           This Agreement shall constitute the
entire agreement between the parties with respect to the subject matter hereof,
and shall supersede all previous oral and written (and all contemporaneous
oral) negotiations, commitments, agreements and understandings relating hereto.

 

(d)           This Agreement shall be governed by,
and construed and interpreted in accordance with, the laws of the State of New
York. This Agreement shall inure to the benefit of, and be binding upon,
Heartland, the Company and their respective successors and assigns. The
provisions of Section 5 shall inure to the benefit of each Indemnified Party.

 

 

(e)           This Agreement may be executed by one
or more parties to this Agreement on any number of separate counterparts, and
all of said counterparts taken together shall be deemed to constitute one and
the same instrument.

 

(f)            The waiver by any party of any
breach of this Agreement shall not operate as or be construed to be a waiver by
such party of any subsequent breach.

 

(g)           Any provision of this Agreement which
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

 

 

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

 

	
   

  	
  HEARTLAND
  INDUSTRIAL GROUP LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:   Heartland
  Industrial Associates

  
	
   

  	
  L.L.C., its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David A.
  Stockman

  
	
   

  	
   

  	
  Title:

  	
  Managing
  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRIMAS
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

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