Document:

exv4w2

 

Exhibit 4.2

EXECUTION COPY

$150,000,000

Commercial Vehicle Group, Inc.

8% Senior Notes due 2013

REGISTRATION RIGHTS AGREEMENT

July 6, 2005

Credit Suisse First Boston LLC

As Representative of the several Purchasers,

c/o Credit Suisse First Boston LLC

     Eleven Madison Avenue

          New York, New York 10010-3629

Dear Sirs:

     Commercial Vehicle Group, Inc., a Delaware corporation (the “Issuer”), proposes to issue and
sell to Credit Suisse First Boston LLC (“CSFB”), Robert W. Baird & Co. Incorporated, ABN AMRO
Incorporated, Comerica Securities, Inc., NatCity Investments, Inc., Piper Jaffray & Co. and
Greenwich Capital Markets, Inc. (collectively, the “Purchasers”), upon the terms set forth in a
purchase agreement dated June 29, 2005, (the “Purchase Agreement”), $150,000,000 aggregate
principal amount of its 8% Senior Notes due 2013 (the “Initial Securities”) to be unconditionally
guaranteed (the “Guarantees”) by the entities set forth in Schedule A hereto (collectively, the
“Guarantors” and together with the Issuer, the “Company”). The Initial Securities will be issued
pursuant to an Indenture, dated as of July 6, 2005, (the “Indenture”) among the Issuer, the
Guarantors and U.S. Bank National Association (the “Trustee”). The United States Securities Act of
1933, as amended, is herein referred to as the “Securities Act”. The United States Securities
Exchange Act of 1934, as amended, is herein referred to as the “Exchange Act”. As an inducement to
the Purchasers, the Company agrees with the Purchasers, for the benefit of the holders of the
Initial Securities (including, without limitation, the Purchasers), the Exchange Securities (as
defined below) and the Private Exchange Securities (as defined below) (collectively the “Holders”),
as follows:

     1. Registered Exchange Offer. Unless not permitted by applicable law, the Company shall, at
its own cost, prepare and, not later than 90 days after (or if the 90th day is not a business day,
the first business day thereafter) (such 90th day, or the first business day thereafter,
being a “Filing Deadline”) after the date of original issue of the Initial Securities (the “Issue
Date”), file with the Securities and Exchange Commission (the “Commission”) a registration
statement (the “Exchange Offer Registration Statement”) on an appropriate form under the Securities
Act of 1933, as amended (the “Securities Act”), with respect to a proposed offer (the “Registered
Exchange Offer”) to the Holders of Transfer Restricted Securities (as defined in Section 6 hereof),
who are not prohibited by any law or policy of the Commission from participating in the Registered
Exchange Offer, to issue and deliver to such Holders, in exchange for the Initial Securities, a
like aggregate principal amount of debt securities of the Company issued under the Indenture and
identical in all material respects to the Initial Securities (except for the transfer restrictions
relating to the Initial Securities and the provisions relating to the matters described in Section
6 hereof) that would be registered under the Securities Act (the “Exchange Securities”). The
Company shall use its reasonable best efforts to cause such Exchange Offer Registration Statement
to be declared effective under the Securities Act within 180 days (or if the 180th day is not a
business day, the first business day thereafter) (such 180th day, or the first business
day thereafter, being an “Effectiveness Deadline”) after the Issue Date of the Initial Securities
and shall keep the Exchange Offer Registration Statement effective for

 

 

not less than 30 days (or longer, if required by applicable law) after the date notice of the
Registered Exchange Offer is mailed to the Holders (such period being called the “Exchange Offer
Registration Period”).

     If the Company effects the Registered Exchange Offer, the Company (i) will be entitled to
close the Registered Exchange Offer 30 days after the commencement thereof (provided that the
Company has accepted all the Initial Securities theretofore validly tendered in accordance with the
terms of the Registered Exchange Offer) and (ii) will be required to consummate the Registered
Exchange Offer not later than 40 days (or if the 40th day is not a business day, the
first business day thereafter) (such 40th day, or the first business day thereafter, the
“Consummation Deadline”) after the date on which the Exchange Offer Registration Statement is
declared effective.

     Following the declaration of the effectiveness of the Exchange Offer Registration Statement,
the Company shall promptly commence the Registered Exchange Offer, it being the objective of such
Registered Exchange Offer to enable each Holder of Transfer Restricted Securities (as defined in
Section 6 hereof) electing to exchange the Initial Securities for Exchange Securities (assuming
that such Holder is not an affiliate of the Company within the meaning of the Securities Act,
acquires the Exchange Securities in the ordinary course of such Holder’s business and has no
arrangements or understanding with any person to participate in the distribution of the Exchange
Securities and is not prohibited by any law or policy of the Commission from participating in the
Registered Exchange Offer) to trade such Exchange Securities from and after their receipt without
any limitations or restrictions under the Securities Act and without material restrictions under
the securities laws of the several states of the United States.

     The Company acknowledges that, pursuant to current interpretations by the Commission’s staff
of Section 5 of the Securities Act, in the absence of an applicable exemption therefrom, (i) each
Holder which is a broker or dealer registered under the Exchange Act (a “broker-dealer”) electing
to exchange Initial Securities, acquired for its own account as a result of market making
activities or other trading activities, for Exchange Securities (an “Exchanging Dealer”), is
required to deliver a prospectus containing the information set forth in (a) Annex A hereto on the
cover, (b) Annex B hereto in the “Exchange Offer Procedures” section and the “Purpose of the
Exchange Offer” section, and (c) Annex C hereto in the “Plan of Distribution” section of such
prospectus in connection with a sale of any such Exchange Securities received by such Exchanging
Dealer pursuant to the Registered Exchange Offer and (ii) a Purchaser that elects to sell Private
Exchange Securities acquired in exchange for Initial Securities constituting any portion of an
unsold allotment is required to deliver a prospectus containing the information required by Items
507 or 508 of Regulation S-K under the Securities Act, as applicable, in connection with such sale.

     The Company shall use its reasonable best efforts to keep the Exchange Offer Registration
Statement effective and to amend and supplement the prospectus contained therein, in order to
permit such prospectus to be lawfully delivered by all persons subject to the prospectus delivery
requirements of the Securities Act for such period of time as such persons must comply with such
requirements in order to resell the Exchange Securities; provided, however, that (i) in the case
where such prospectus and any amendment or supplement thereto must be delivered by an Exchanging
Dealer or a Purchaser, such period shall be the lesser of 180 days (or such shorter period during
which such person is required by applicable law to deliver such prospectus) and the date on which
all Exchanging Dealers and the Purchasers have sold all Exchange Securities held by them (unless
such period is extended pursuant to Section 3(j) below) and (ii) the Company shall make such
prospectus and any amendment or supplement thereto, available to any broker-dealer for use in
connection with any resale of any Exchange Securities for a period of not less than 180 days after
the effective date of the Exchange Offer Registration Statement (or such shorter period during
which such persons are required by applicable law to deliver such prospectus).

     If, upon consummation of the Registered Exchange Offer, any Purchaser holds Initial Securities
acquired by it as part of its initial distribution, the Company, simultaneously with the delivery
of the Exchange Securities pursuant to the Registered Exchange Offer, shall issue and deliver to
such Purchaser upon the written request of such Purchaser, in exchange (the “Private Exchange”) for
the Initial Securities held by such Purchaser, a like principal amount of debt securities of the
Company issued under the

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Indenture and identical in all material respects (including the existence of restrictions on
transfer under the Securities Act and the securities laws of the several states of the United
States, but excluding provisions relating to the matters described in Section 6 hereof) to the
Initial Securities (the “Private Exchange Securities”). The Initial Securities, the Exchange
Securities and the Private Exchange Securities are herein collectively called the “Securities”.

     In connection with the Registered Exchange Offer, the Company shall:

     (a) mail to each Holder a copy of the prospectus forming part of the Exchange Offer
Registration Statement, together with an appropriate letter of transmittal and related
documents;

     (b) keep the Registered Exchange Offer open for not less than 30 days (or longer, if
required by applicable law) after the date notice thereof is mailed to the Holders;

     (c) utilize the services of a depositary for the Registered Exchange Offer with an
address in the Borough of Manhattan, The City of New York, which may be the Trustee or an
affiliate of the Trustee;

     (d) permit Holders to withdraw tendered Securities at any time prior to the close of
business, New York time, on the last business day on which the Registered Exchange Offer
shall remain open; and

     (e) otherwise comply with all applicable laws.

     As soon as practicable after the close of the Registered Exchange Offer or the Private
Exchange, as the case may be, the Company shall:

     (x) accept for exchange all the Initial Securities validly tendered and not withdrawn
pursuant to the Registered Exchange Offer and the Private Exchange;

     (y) deliver to the Trustee for cancelation all the Initial Securities so accepted for
exchange; and

     (z) cause the Trustee to authenticate and deliver promptly to each Holder of the
Initial Securities, Exchange Securities or Private Exchange Securities, as the case may be,
equal in principal amount to the Initial Securities of such Holder so accepted for
exchange.

     The Indenture will provide that the Exchange Securities will not be subject to the transfer
restrictions set forth in the Indenture and that all the Securities will vote and consent together
on all matters as one class and that none of the Securities will have the right to vote or consent
as a class separate from one another on any matter.

     Interest on each Exchange Security and Private Exchange Security issued pursuant to the
Registered Exchange Offer and in the Private Exchange will accrue from the last interest payment
date on which interest was paid on the Initial Securities surrendered in exchange therefor or, if
no interest has been paid on the Initial Securities, from the Issue Date.

     Each Holder participating in the Registered Exchange Offer shall be required to represent to
the Company that at the time of the consummation of the Registered Exchange Offer (i) any Exchange
Securities received by such Holder will be acquired in the ordinary course of its business, (ii)
such Holder will have no arrangements or understanding with any person to participate in the
distribution (within the meaning of the Securities Act) of the Exchange Securities, (iii) such
Holder is not an affiliate, as defined in Rule 405 of the Securities Act, of the Company or if it
is an “affiliate”, such Holder will comply with the registration and prospectus delivery
requirements of the Securities Act to the extent applicable, (iv) if such Holder is not a
broker-dealer, that it is not engaged in, and does not intend to engage in, the distribution of

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the Exchange Securities and (v) if such Holder is a broker-dealer, that it will receive Exchange
Securities for its own account in exchange for Initial Securities that were acquired as a result of
market-making activities or other trading activities and that it will be required to acknowledge
that it will deliver a prospectus in connection with any resale of such Exchange Securities.

     Notwithstanding any other provisions hereof, the Company will ensure that (i) any Exchange
Offer Registration Statement and any amendment thereto and any prospectus forming part thereof and
any supplement thereto complies in all material respects with the Securities Act and the rules and
regulations thereunder, (ii) any Exchange Offer Registration Statement and any amendment thereto
does not, when it becomes effective, contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein not
misleading and (iii) any prospectus forming part of any Exchange Offer Registration Statement, and
any supplement to such prospectus, does not include an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading.

     2. Shelf Registration. If, (i) because of any change in law or in applicable interpretations
of the staff of the Commission, the Company is not permitted to effect a Registered Exchange Offer,
as contemplated by Section 1 hereof, (ii) for any other reason the Registered Exchange Offer is not
consummated within 220 days of the Issue Date, (iii) any Purchaser so requests in writing to the
Company with respect to the Initial Securities (or the Private Exchange Securities) not eligible to
be exchanged for Exchange Securities in the Registered Exchange Offer and held by it following
consummation of the Registered Exchange Offer or (iv) any Holder (other than an Exchanging Dealer)
is not eligible to participate in the Registered Exchange Offer or, in the case of any Holder
(other than an Exchanging Dealer) that participates in the Registered Exchange Offer, such Holder
does not receive freely tradeable Exchange Securities on the date of the exchange (other than, in
each case, by reason of such Holder being an affiliate of the Company) and any such Holder so
requests in writing to the Company, the Company shall take the following actions (the date on which
any of the conditions described in the foregoing clauses (i) through (iv) occur being a “Trigger
Date”):

     (a) The Company shall, at its cost, as promptly as practicable (but in no event more
than 30 days after the Trigger Date (or if the 30th day is not a business day,
the first business day thereafter) (such 30th day, or the first business day
thereafter, being a “Filing Deadline”) file with the Commission and thereafter shall use
its reasonable best efforts to (x) in the case of a Shelf Registration Statement filed
pursuant to clause (i) of the foregoing paragraph, no later than 180 days after the Issue
Date (or if the 180th day is not a business day, the first business day
thereafter) and (y) in the case of a Shelf Registration Statement filed pursuant to clause
(ii), (iii) or (iv) of the foregoing paragraph, no later than 60 days after the applicable
Filing Deadline (or if the 60th day is not a business day, the first business
day thereafter) (such 180th or 60th day, or the first business day
thereafter, as the case may be, being an “Effectiveness Deadline”), cause to be declared
effective under the Securities Act a registration statement (the “Shelf Registration
Statement” and, together with the Exchange Offer Registration Statement, a “Registration
Statement”) on an appropriate form under the Securities Act relating to the offer and sale
of the Transfer Restricted Securities (as defined in Section 6 hereof) by the Holders
thereof from time to time in accordance with the methods of distribution set forth in the
Shelf Registration Statement and Rule 415 under the Securities Act (hereinafter, the “Shelf
Registration”); provided, however, that no Holder (other than a Purchaser) shall be
entitled to have the Securities held by it covered by such Shelf Registration Statement
unless such Holder agrees in writing to be bound by all the provisions of this Agreement
applicable to such Holder.

     (b) The Company shall use its reasonable best efforts to keep the Shelf Registration
Statement continuously effective in order to permit the prospectus included therein to be
lawfully delivered by the Holders of the relevant Securities, for a period of two years (or
for such longer period if extended pursuant to Section 3(j) below) from the Issue Date or
such shorter period that will terminate when all the Securities covered by the Shelf
Registration Statement (i) have been

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sold pursuant thereto; (ii) are no longer restricted securities (as defined in Rule 144
under the Securities Act, or any successor rule thereof) or (iii) can be sold pursuant to
Rule 144 under the Securities Act without any limitations under clauses (c), (e), (f) and
(h) thereof. The Company shall be deemed not to have used its reasonable best efforts to
keep the Shelf Registration Statement effective during the requisite period if it
voluntarily takes any action that would result in Holders of Securities covered thereby not
being able to offer and sell such Securities during that period, unless (x) such action is
required by applicable law or (y) such action is taken by the Company in good faith and for
valid business reasons, including the acquisition or divestiture of assets, so long as the
Company promptly complies with Section 3(j) hereof, if applicable.

     (c) Notwithstanding any other provisions of this Agreement to the contrary, the
Company shall cause the Shelf Registration Statement and the related prospectus and any
amendment or supplement thereto, as of the effective date of the Shelf Registration
Statement, amendment or supplement, (i) to comply in all material respects with the
applicable requirements of the Securities Act and the rules and regulations of the
Commission and (ii) not to contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading.

     3. Registration Procedures. In connection with any Shelf Registration contemplated by
Section 2 hereof and, to the extent applicable, any Registered Exchange Offer contemplated by
Section 1 hereof, the following provisions shall apply:

     (a) The Company shall (i) furnish to each Purchaser, prior to the filing thereof with
the Commission, a copy of the Registration Statement and each amendment thereof and each
supplement, if any, to the prospectus included therein and, in the event that a Purchaser
(with respect to any portion of an unsold allotment from the original offering) is
participating in the Registered Exchange Offer or the Shelf Registration Statement, the
Company shall use its reasonable best efforts to reflect in each such document, when so
filed with the Commission, such comments as such Purchaser reasonably may propose; (ii)
include the information set forth in Annex A hereto on the cover, in Annex B hereto in the
“Exchange Offer Procedures” section and the “Purpose of the Exchange Offer” section and in
Annex C hereto in the “Plan of Distribution” section of the prospectus forming a part of
the Exchange Offer Registration Statement and include the information set forth in Annex D
hereto in the Letter of Transmittal delivered pursuant to the Registered Exchange Offer;
(iii) if requested in writing by a Purchaser, include the information required by Items 507
or 508 of Regulation S-K under the Securities Act, as applicable, in the prospectus forming
a part of the Exchange Offer Registration Statement; (iv) include within the prospectus
contained in the Exchange Offer Registration Statement a section entitled “Plan of
Distribution”, reasonably acceptable to the Purchasers, which shall contain a summary
statement of the positions taken or policies made by the staff of the Commission with
respect to the potential “underwriter” status of any broker-dealer that is the beneficial
owner (as defined in Rule 13d-3 under the Exchange Act) of Exchange Securities received by
such broker-dealer in the Registered Exchange Offer (a “Participating Broker-Dealer”),
whether such positions or policies have been publicly disseminated by the staff of the
Commission or such positions or policies, in the reasonable judgment of the Purchasers
based upon advice of counsel (which may be in-house counsel), represent the prevailing
views of the staff of the Commission; and (v) in the case of a Shelf Registration
Statement, include the names of the Holders, who propose to sell Securities pursuant to the
Shelf Registration Statement, as selling security holders.

     (b) The Company shall give written notice to the Purchasers, the Holders of Transfer
Restricted Securities and any Participating Broker-Dealer from whom the Company has
received prior written notice that it will be a Participating Broker-Dealer in the
Registered Exchange Offer and who has provided in writing to the Company a telephone number
or facsimile number for notices (which notice pursuant to clauses (ii)-(v) hereof shall be
accompanied by an instruction to suspend the use of the prospectus until the requisite
changes have been made):

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     (i) when the Registration Statement or any amendment thereto has been filed
with the Commission and when the Registration Statement or any post-effective
amendment thereto has become effective;

     (ii) of any request by the Commission for amendments or supplements to the
Registration Statement or the prospectus included therein or for additional
information;

     (iii) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or the initiation of any proceedings
for that purpose;

     (iv) of the receipt by the Company or its legal counsel of any notification
with respect to the suspension of the qualification of the Securities for sale in
any jurisdiction or the initiation or threatening of any proceeding for such
purpose; and

     (v) of the happening of any event that requires the Company to make changes
in the Registration Statement or the prospectus in order that the Registration
Statement or the prospectus do not contain an untrue statement of a material fact
nor omit to state a material fact required to be stated therein or necessary to
make the statements therein (in the case of the prospectus, in light of the
circumstances under which they were made) not misleading.

     (c) The Company shall make every reasonable effort to obtain the withdrawal at the
earliest possible time, of any order suspending the effectiveness of the Registration
Statement.

     (d) The Company shall furnish to each Holder of Securities included within the
coverage of the Shelf Registration, without charge, at least one copy of the Shelf
Registration Statement and any post-effective amendment thereto, including financial
statements and schedules, and, if the Holder so requests in writing, all exhibits thereto
(including those, if any, incorporated by reference).

     (e) The Company shall deliver to each Exchanging Dealer and each Purchaser, and to
any other Holder who so requests, without charge, at least one copy of the Exchange Offer
Registration Statement and any post-effective amendment thereto, including financial
statements and schedules, and, if any Purchaser or any such Holder requests, all exhibits
thereto (including those incorporated by reference).

     (f) The Company shall, during the Shelf Registration Period, deliver to each Holder
of Securities included within the coverage of the Shelf Registration, without charge, as
many copies of the prospectus (including each preliminary prospectus) included in the Shelf
Registration Statement and any amendment or supplement thereto as such person may
reasonably request. Subject to this Agreement and provided that the manner of use complies
with any limitations resulting from the applicable state securities laws, the Company
consents to the use of the prospectus or any amendment or supplement thereto by each of the
selling Holders of the Securities in connection with the offering and sale of the
Securities covered by the prospectus, or any amendment or supplement thereto, included in
the Shelf Registration Statement.

     (g) The Company shall deliver to each Purchaser, any Exchanging Dealer, any
Participating Broker-Dealer and such other persons required to deliver a prospectus
following the Registered Exchange Offer, without charge, as many copies of the final
prospectus included in the Exchange Offer Registration Statement and any amendment or
supplement thereto as such persons may reasonably request. Subject to this Agreement and
provided that the manner of use complies with any limitations resulting from the applicable
state securities laws, the Company consents to the use of the prospectus or any amendment
or supplement thereto by any Purchaser, if necessary,

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any Exchanging Dealer, any Participating Broker-Dealer and such other persons required to
deliver a prospectus following the Registered Exchange Offer in connection with the
offering and sale of the Exchange Securities covered by the prospectus, or any amendment or
supplement thereto, included in such Exchange Offer Registration Statement.

     (h) Prior to any public offering of the Securities, pursuant to any Registration
Statement, the Company shall register or qualify or cooperate with the Holders of the
Securities included therein and their respective counsel in connection with the
registration or qualification of the Securities for offer and sale under the securities or
“blue sky” laws of such states of the United States as any Holder of the Securities
reasonably requests in writing and do any and all other acts or things as may be reasonably
requested to enable the offer and sale in such jurisdictions of the Securities covered by
such Registration Statement; provided, however, that the Company shall not be required to
(i) qualify generally to do business or qualify as a dealer in securities in any
jurisdiction where it is not then so qualified or (ii) take any action which would subject
it to general service of process or to taxation in any jurisdiction where it is not then so
subject.

     (i) The Company shall cooperate with the Holders of the Securities to facilitate the
timely preparation and delivery of certificates representing the Securities to be sold
pursuant to any Registration Statement free of any restrictive legends and in such
denominations and registered in such names as the Holders may request a reasonable period
of time prior to sales of the Securities pursuant to such Registration Statement.

     (j) Upon the occurrence of any event contemplated by paragraphs (ii) through (v) of
Section 3(b) above during the period for which the Company is required to maintain an
effective Registration Statement, the Company shall promptly prepare and file a
post-effective amendment to the Registration Statement or a supplement to the related
prospectus and any other required document so that, as thereafter delivered to Holders of
the Securities or purchasers of Securities, the prospectus will not contain an untrue
statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. If the Company notifies the Purchasers, the Holders
of the Securities and any known Participating Broker-Dealer in accordance with paragraphs
(ii) through (v) of Section 3(b) above to suspend the use of the prospectus until the
requisite changes to the prospectus have been made, then the Purchasers, the Holders of the
Securities and any such Participating Broker-Dealers shall suspend use of such prospectus,
and the period of effectiveness of the Shelf Registration Statement provided for in Section
2(b) above and the Exchange Offer Registration Statement provided for in Section 1 above
shall each be extended by the number of days from and including the date of the giving of
such notice to and including the date when the Purchasers, the Holders of the Securities
and any known Participating Broker-Dealer shall have received such amended or supplemented
prospectus pursuant to this Section 3(j).

     (k) Not later than the effective date of the applicable Registration Statement, the
Company will provide a CUSIP number for the Initial Securities, the Exchange Securities or
the Private Exchange Securities, as the case may be, and provide the applicable trustee
with printed certificates for the Initial Securities, the Exchange Securities or the
Private Exchange Securities, as the case may be, in a form eligible for deposit with The
Depository Trust Company.

     (l) The Company will comply in all material respects with all rules and regulations
of the Commission to the extent and so long as they are applicable to the Registered
Exchange Offer or the Shelf Registration and will make generally available to its security
holders (or otherwise provide in accordance with Section 11(a) of the Securities Act) an
earnings statement satisfying the provisions of Section 11(a) of the Securities Act, no
later than 45 days after the end of a 12-month period (or 90 days, if such period is a
fiscal year) beginning with the first month of the Company’s first fiscal quarter
commencing after the effective date of the Registration Statement, which statement shall
cover such 12-month period.

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     (m) The Company shall cause the Indenture to be qualified under the Trust Indenture
Act of 1939, as amended (the “Trust Indenture Act”) , in a timely manner and containing
such changes, if any, as shall be necessary for such qualification. In the event that such
qualification would require the appointment of a new trustee under the Indenture, the
Company shall appoint a new trustee thereunder pursuant to the applicable provisions of the
Indenture.

     (n) The Company may require each Holder of Securities to be sold pursuant to the
Shelf Registration Statement to furnish to the Company such information regarding the
Holder and the distribution of the Securities as the Company may from time to time
reasonably require for inclusion in the Shelf Registration Statement, and the Company may
exclude from such registration the Securities of any Holder that fails to furnish such
information within a reasonable time after receiving such request.

     (o) The Company shall enter into such customary agreements (including, if requested
in writing, an underwriting agreement in customary form) and take all such other action, if
any, as any Holder of the Securities shall reasonably request in writing in order to
facilitate the disposition of the Securities pursuant to any Shelf Registration.

     (p) In the case of any Shelf Registration, the Company shall (i) during normal
business hours at the office where normally kept make reasonably available for inspection
by the Holders of the Securities, any underwriter participating in any disposition pursuant
to the Shelf Registration Statement and any attorney, accountant or other agent retained by
the Holders of the Securities or any such underwriter all relevant financial and other
records, pertinent corporate documents and properties of the Company and (ii)cause the
Company’s officers, directors, employees, accountants and auditors to supply all relevant
information reasonably requested by the Holders of the Securities or any such underwriter,
attorney, accountant or agent in connection with the Shelf Registration Statement, in each
case, as shall be reasonably necessary to enable such persons, to conduct a reasonable
investigation within the meaning of Section 11 of the Securities Act; provided, however,
that the foregoing inspection and information gathering shall be coordinated on behalf of
the Purchasers by you and on behalf of the other parties, by one counsel designated by and
on behalf of such other parties as described in Section 4 hereof; provided, further
however, that any information that is designated by the Company, in good faith, as
confidential at the time of delivery of such information shall be kept confidential by such
Holders of the Securities or any such attorney, accountant or agent, unless such disclosure
is necessary to avoid or correct a material misstatement or omission in such Registration
Statement after a failure by the Company to make such disclosure for a period of five
business days after receiving written notice from any Holder of the Securities or such
counsel designated pursuant to Section 4 hereof of the need to make such disclosure or such
information becomes available to the public generally through no fault of such Purchaser.
Prior notice shall be provided as soon as reasonably practicable to the Company of the
potential disclosure of any information pursuant to the foregoing sentence to permit the
Company to obtain a protective order or to take appropriate action to prevent the
disclosure of such information.

     (q) In the case of any Shelf Registration, the Company, if requested in writing by
any Holder of Securities covered thereby, shall cause (i) its counsel to deliver an opinion
and updates thereof relating to the Securities in customary form addressed to such Holders
and the Managing Underwriters (as defined below), if any, thereof and dated, in the case of
the initial opinion, the effective date of such Shelf Registration Statement substantially
in the form set forth in Annex A to the Purchase Agreement, with such changes as are
customary in the preparation of an opinion for a Shelf Registration Statement; (ii) its
officers to execute and deliver all customary documents and certificates and updates
thereof requested by any underwriters of the applicable Securities and (iii) its
independent public accountants and the independent public accountants with respect to any
other entity for which financial information is provided in the Shelf Registration
Statement to provide to the selling Holders of the applicable Securities and any
underwriter therefor a comfort

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letter in customary form and covering matters of the type customarily covered in comfort
letters in connection with primary underwritten offerings, subject to receipt of
appropriate documentation as contemplated, and only if permitted, by Statement of Auditing
Standards No. 72.

     (r) In the case of the Registered Exchange Offer, if requested in writing by any
Purchaser or any known Participating Broker-Dealer, the Company shall cause (i) its counsel
to deliver to such Purchaser or such Participating Broker-Dealer a signed opinion in the
form set forth in Section 6(c) of the Purchase Agreement with such changes as are customary
in connection with the preparation of a Registration Statement and (ii) its independent
public accountants and the independent public accountants with respect to any other entity
for which financial information is provided in the Registration Statement to deliver to
such Purchaser or such Participating Broker-Dealer a comfort letter, in customary form,
meeting the requirements as to the substance thereof as set forth in Sections 6(a) and 6(f)
of the Purchase Agreement, with appropriate date changes.

     (s) If a Registered Exchange Offer or a Private Exchange is to be consummated, upon
delivery of the Initial Securities by Holders to the Company (or to such other Person as
directed by the Company) in exchange for the Exchange Securities or the Private Exchange
Securities, as the case may be, the Company shall mark, or cause to be marked, on the
Initial Securities so exchanged that such Initial Securities are being canceled in exchange
for the Exchange Securities or the Private Exchange Securities, as the case may be; in no
event shall the Initial Securities be marked as paid or otherwise satisfied.

     (t) The Company will use its reasonable best efforts to (a) if the Initial Securities
have been rated prior to the initial sale of such Initial Securities, confirm such ratings
will apply to the Securities covered by a Registration Statement, or (b) if the Initial
Securities were not previously rated, cause the Securities covered by a Registration
Statement to be rated with the appropriate rating agencies, if so requested in writing by
Holders of a majority in aggregate principal amount of Securities covered by such
Registration Statement, or by the Managing Underwriters, if any.

     (u) In the event that any broker-dealer registered under the Exchange Act shall
underwrite any Securities or participate as a member of an underwriting syndicate or
selling group or “assist in the distribution” (within the meaning of the Conduct Rules
(“the Rules”) of the National Association of Securities Dealers, Inc. (“NASD”)) thereof,
whether as a Holder of such Securities or as an underwriter, a placement or sales agent or
a broker or dealer in respect thereof, or otherwise, the Company will assist such
broker-dealer in complying with the requirements of such Rules, including, without
limitation, by (i) if such Rules, including Rule 2720, shall so require, engaging a
“qualified independent underwriter” (as defined in Rule 2720) to participate in the
preparation of the Registration Statement relating to such Securities, to exercise usual
standards of due diligence in respect thereto and, if any portion of the offering
contemplated by such Registration Statement is an underwritten offering or is made through
a placement or sales agent, to recommend the yield of such Securities, (ii) indemnifying
any such qualified independent underwriter to the extent of the indemnification of
underwriters provided in Section 5 hereof and (iii) providing such information to such
broker-dealer as may be required in order for such broker-dealer to comply with the
requirements of the Rules.

     (v) The Company shall use its reasonable best efforts to take all other steps
necessary to effect the registration of the Securities covered by a Registration Statement
contemplated hereby.

     4. Registration Expenses. The Company shall bear all fees and expenses incurred in
connection with the performance of its obligations under Sections 1 through 3 hereof (including the
reasonable fees and expenses, if any, of Cravath, Swaine & Moore LLP, counsel for the Purchasers,
incurred in connection with the Registered Exchange Offer) whether or not the Exchange Offer
Registration Statement or a Shelf Registration is filed or becomes effective, and, in the event of
a Shelf Registration, shall bear or reimburse the Holders of the Securities covered thereby for the
reasonable fees and disbursements of one firm of counsel designated by the Holders of a majority in
principal amount of the Initial Securities covered thereby

9

 

to act as counsel for the Holders of the Initial Securities in connection therewith. Except as
provided in the preceding sentence, each Holder shall pay all expenses of its counsel and shall pay
all underwriting discounts and commissions and transfer taxes, if any, relating to the disposition
of such Holder’s Transfer Restricted Securities, pursuant to a Registration Statement.

     5. Indemnification. (a) The Company agrees to indemnify and hold harmless each Holder of
the Securities, any Participating Broker-Dealer and each person, if any, who controls such Holder
or such Participating Broker-Dealer within the meaning of the Securities Act or the Exchange Act
(each Holder, any Participating Broker-Dealer and such controlling persons are referred to
collectively as the “Indemnified Parties”) from and against any losses, claims, damages or
liabilities, joint or several, or any actions in respect thereof (including, but not limited to,
any losses, claims, damages, liabilities or actions relating to purchases and sales of the
Securities) to which each Indemnified Party may become subject under the Securities Act, the
Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise
out of or are based upon any untrue statement or alleged untrue statement of a material fact
contained in a Registration Statement or prospectus or in any amendment or supplement thereto or in
any preliminary prospectus relating to a Shelf Registration, or arise out of, or are based upon,
the omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and shall reimburse, as incurred, the
Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action in respect thereof;
provided, however, that (i) the Company shall not be liable in any such case to the extent that
such loss, claim, damage or liability arises out of or is based upon any untrue statement or
alleged untrue statement or omission or alleged omission made in a Registration Statement or
prospectus or in any amendment or supplement thereto or in any preliminary prospectus relating to a
Shelf Registration in reliance upon and in conformity with written information pertaining to such
Holder and furnished to the Company by or on behalf of such Holder specifically for inclusion
therein and (ii) with respect to any untrue statement or omission or alleged untrue statement or
omission made in any preliminary prospectus relating to a Shelf Registration Statement, the
indemnity agreement contained in this subsection (a) shall not inure to the benefit of any Holder
or Participating Broker-Dealer from whom the person asserting any such losses, claims, damages or
liabilities purchased the Securities concerned, to the extent that (i) a prospectus relating to
such Securities was required to be delivered by such Holder or Participating Broker-Dealer under
the Securities Act in connection with such purchase and any such loss, claim, damage or liability
of such Holder or Participating Broker-Dealer results from the fact that there was not sent or
given to such person, at or prior to the written confirmation of the sale of such Securities to
such person, a copy of the final prospectus if the Company had previously furnished copies thereof
to such Holder or Participating Broker-Dealer or (ii) the indemnified party, after receiving
written notice from the Company at least five business days prior to the date of delivery of a copy
of the prospectus, of any event described in Sections (3)(b)(ii) through (v), thereafter failed to
discontinue delivery of such prospectus in accordance with such notice; provided further, however,
that this indemnity agreement will be in addition to any liability which the Company may otherwise
have to such Indemnified Party. The Company shall also indemnify underwriters, their officers and
directors and each person who controls such underwriters within the meaning of the Securities Act
or the Exchange Act to the same extent as provided above with respect to the indemnification of the
Holders of the Securities if requested by such Holders.

     (b) Each Holder of the Securities, severally and not jointly, will indemnify and hold
harmless the Company, its directors and its officers who sign a Registration Statement and each
person, if any, who controls the Company within the meaning of the Securities Act or the Exchange
Act from and against any losses, claims, damages or liabilities or any actions in respect thereof,
to which the Company or any such controlling person may become subject under the Securities Act,
the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions
arise out of or are based upon any untrue statement or alleged untrue statement of a material fact
contained in a Registration Statement or prospectus or in any amendment or supplement thereto or in
any preliminary prospectus relating to a Shelf Registration, or arise out of or are based upon the
omission or alleged omission to state therein a material fact necessary to make the statements
therein not misleading, but in each case only to the extent that the untrue statement or omission
or alleged untrue statement or omission was made in reliance upon and in conformity with written
information pertaining to such Holder and furnished to the Company by or on behalf of such Holder

10

 

specifically for inclusion therein; and, subject to the limitation set forth immediately preceding
this clause, shall reimburse, as incurred, the Company for any legal or other expenses reasonably
incurred by the Company or any such controlling person in connection with investigating or
defending any loss, claim, damage, liability or action in respect thereof. This indemnity
agreement will be in addition to any liability which such Holder may otherwise have to the Company
or any of its controlling persons.

     (c) Promptly after receipt by an indemnified party under this Section 5 of notice of the
commencement of any action or proceeding (including a governmental investigation), such indemnified
party will, if a claim in respect thereof is to be made against the indemnifying party under this
Section 5, notify the indemnifying party of the commencement thereof; but the failure to notify the
indemnifying party shall not relieve the indemnifying party from any liability that it may have
under subsection (a) or (b) above except to the extent that it has been materially prejudiced
(through the forfeiture of substantive rights or defenses) by such failure; and provided further
that the failure to notify the indemnifying party shall not relieve it from any liability that it
may have to an indemnified party otherwise than under subsection (a) or (b) above. In case any
such action is brought against any indemnified party, and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate therein and, to the
extent that it may wish, jointly with any other indemnifying party similarly notified, to assume
the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not,
except with the consent of the indemnified party, be counsel to the indemnifying party), and after
notice from the indemnifying party to such indemnified party of its election so to assume the
defense thereof the indemnifying party will not be liable to such indemnified party under this
Section 5 for any legal or other expenses, other than reasonable costs of investigation,
subsequently incurred by such indemnified party in connection with the defense thereof. No
indemnifying party shall, without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened action in respect of which any indemnified party is or
could have been a party and indemnity could have been sought hereunder by such indemnified party
unless such settlement (i) includes an unconditional release of such indemnified party from all
liability on any claims that are the subject matter of such action, and (ii) does not include a
statement as to or an admission of fault, culpability or a failure to act by or on behalf of any
indemnified party.

     (d) If the indemnification provided for in this Section 5 is unavailable or insufficient to
hold harmless an indemnified party under subsections (a) or (b) above, then each indemnifying party
shall contribute to the amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to in subsection (a) or (b)
above (i) in such proportion as is appropriate to reflect the relative benefits received by the
indemnifying party or parties on the one hand and the indemnified party on the other from the
exchange of the Securities, pursuant to the Registered Exchange Offer, or (ii) if the allocation
provided by the foregoing clause (i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i) above but also the
relative fault of the indemnifying party or parties on the one hand and the indemnified party on
the other in connection with the statements or omissions that resulted in such losses, claims,
damages or liabilities (or actions in respect thereof) as well as any other relevant equitable
considerations. The relative fault of the parties shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the Company on the one
hand or such Holder or such other indemnified party, as the case may be, on the other, and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The amount paid by an indemnified party as a result of the losses,
claims, damages or liabilities referred to in the first sentence of this subsection (d) shall be
deemed to include any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any action or claim which is the subject of this
subsection (d). Notwithstanding any other provision of this Section 5(d), the Holders of the
Securities shall not be required to contribute any amount in excess of the amount by which the net
proceeds received by such Holders from the sale of the Securities pursuant to a Registration
Statement exceeds the amount of damages which such Holders have otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who

11

 

was not guilty of such fraudulent misrepresentation. For purposes of this paragraph (d), each
person, if any, who controls such indemnified party within the meaning of the Securities Act or the
Exchange Act shall have the same rights to contribution as such indemnified party and each person,
if any, who controls the Company within the meaning of the Securities Act or the Exchange Act shall
have the same rights to contribution as the Company.

     (e) The agreements contained in this Section 5 shall survive the sale of the Securities
pursuant to a Registration Statement and shall remain in full force and effect, regardless of any
termination or cancelation of this Agreement or any investigation made by or on behalf of any
indemnified party.

     6. Additional Interest Under Certain Circumstances. (a) Additional interest (“the
Additional Interest”) with respect to the Initial Securities shall be assessed as follows if any of
the following events occur (each such event in clauses (i) through (iv) below a “Registration
Default”):

     (i) any Registration Statement required by this Agreement is not filed with the
Commission on or prior to the applicable Filing Deadline;

     (ii) any Registration Statement required by this Agreement is not declared effective
by the Commission on or prior to the applicable Effectiveness Deadline;

     (iii) the Registered Exchange Offer has not been consummated on or prior to the
Consummation Deadline; or

     (iv) any Registration Statement required by this Agreement has been declared
effective by the Commission (A) such Registration Statement thereafter ceases to be
effective; or (B) such Registration Statement or the related prospectus ceases to be usable
(except as permitted in paragraph (b)) in connection with resales of Transfer Restricted
Securities during the periods specified herein because either (1) any event occurs as a
result of which the related prospectus forming part of such Registration Statement would
include any untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein in the light of the circumstances under which they
were made not misleading, or (2) it shall be necessary to amend such Registration Statement
or supplement the related prospectus, to comply with the Securities Act or the Exchange Act
or the respective rules thereunder.

Additional Interest shall accrue on the Initial Securities over and above the interest set forth in
the title of the Securities from and including the date on which any such Registration Default
shall occur, at a rate of 0.25% per annum for the first 90-day period immediately following the
occurrence of a Registration Default, and such rate will increase by an additional 0.25% per annum
with respect to each subsequent 90-day period to but excluding the date on which all such
Registration Defaults have been cured and, in the case of a Registration Default relating to a
Shelf Registration, the date the Company’s obligation to keep the Registration Statement effective
ceases under Section 2(b) hereof, up to a maximum Additional Interest of 2.0% per annum. Such
Additional Interest shall be the Holders’ sole monetary remedy under this Agreement with respect to
any Registration Default.

     (b) A Registration Default referred to in Section 6(a)(iv)(B) hereof shall be deemed not to
have occurred and be continuing in relation to a Shelf Registration Statement or the related
prospectus if (i) such Registration Default has occurred solely as a result of (x)the filing of a
post-effective amendment to such Shelf Registration Statement to incorporate annual audited
financial information with respect to the Company where such post-effective amendment is not yet
effective and needs to be declared effective to permit Holders to use the related prospectus or (y)
other material events, with respect to the Company that would need to be described in such Shelf
Registration Statement or the related prospectus and (ii) in the case of clause (y), the Company is
proceeding promptly and in good faith to amend or supplement such Shelf Registration Statement and
related prospectus to describe such events; provided that the failure of the Company to proceed
promptly shall not be deemed to be a violation of this clause (b)(ii) if the board of directors of
the Company determines in its good faith judgment that the disclosure of any such event at such

12

 

time would have a material adverse effect on the business or operations of the Company; provided,
further, however, that in any case if such Registration Default occurs for a continuous period in
excess of 60 days, Additional Interest shall be payable in accordance with the above paragraph from
the day such Registration Default occurs until such Registration Default is cured.

     (c) Any amounts of Additional Interest due pursuant to Section 6(a) above will be payable in
cash on the regular interest payment dates with respect to the Initial Securities. The amount of
Additional Interest will be determined by multiplying the applicable Additional Interest rate by
the principal amount of the Initial Securities, multiplied by a fraction, the numerator of which is
the number of days such Additional Interest rate was applicable during such period (determined on
the basis of a 360-day year comprised of twelve 30-day months), and the denominator of which is
360.

     (d) “Transfer Restricted Securities” means each Security until (i) the date on which such
Transfer Restricted Security has been exchanged by a person other than a broker-dealer for a freely
transferable Exchange Security in the Registered Exchange Offer, (ii) following the exchange by a
broker-dealer in the Registered Exchange Offer of an Initial Security for an Exchange Security, the
date on which such Exchange Security is sold to a purchaser who receives from such broker-dealer on
or prior to the date of such sale a copy of the prospectus contained in the Exchange Offer
Registration Statement, (iii) the date on which such Security has been effectively registered under
the Securities Act and disposed of in accordance with the Shelf Registration Statement or (iv) the
date on which such Security is distributed to the public pursuant to Rule 144 under the Securities
Act or is saleable pursuant to Rule 144(k) under the Securities Act.

     7. Rules 144 and 144A. The Company shall use its best reasonable efforts to file the reports
required to be filed by it under the Securities Act and the Exchange Act in a timely manner and, if
at any time the Company is not required to file such reports, it will, upon the request of any
Holder of Initial Securities, make publicly available other information so long as necessary to
permit sales of their securities pursuant to Rules 144 and 144A. The Company covenants that it
will take such further action as any Holder of Initial Securities may reasonably request, all to
the extent required from time to time to enable such Holder to sell Initial Securities without
registration under the Securities Act within the limitation of the exemptions provided by Rules 144
and 144A (including the requirements of Rule 144A(d)(4)). The Company will provide a copy of this
Agreement to prospective purchasers of Initial Securities identified to the Company by the
Purchasers upon request. Upon the request of any Holder of Initial Securities, the Company shall
deliver to such Holder a written statement as to whether it has complied with such requirements.
Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to require the Company to
register any of its securities pursuant to the Exchange Act.

     8. Underwritten Registrations. If any of the Transfer Restricted Securities covered by any
Shelf Registration are to be sold in an underwritten offering, the investment banker or investment
bankers and manager or managers that will administer the offering (“Managing Underwriters”) will be
selected by the Holders of a majority in aggregate principal amount of such Transfer Restricted
Securities to be included in such offering.

     No person may participate in any underwritten registration hereunder unless such person (i)
agrees to sell such person’s Transfer Restricted Securities on the basis reasonably provided in any
underwriting arrangements approved by the persons entitled hereunder to approve such arrangements
and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such underwriting
arrangements.

     9. Miscellaneous.

     (a) Amendments and Waivers. The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof may not be given,
except by the Company and the written consent of the Holders of a majority in principal amount of
the Securities affected by such amendment, modification, supplement, waiver or consents.

13

 

     (b) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand delivery, first-class mail, facsimile transmission, or air courier which
guarantees overnight delivery:

     (1) if to a Holder of the Securities, at the most current address given by such Holder to the
Company.

     (2) if to the Purchasers;

Credit Suisse First Boston LLC

Eleven Madison Avenue

New York, NY 10010-3629

Fax No.: (212) 325-8278

Attention: Transactions Advisory Group

     with a copy to:

Cravath, Swaine & Moore LLP

Worldwide Plaza

825 Eighth Avenue

New York, NY 10019-7475

Fax No.: (212) 474-3700

Attention: Kris F. Heinzelman, Esq.

     (3) if to the Company, at its address as follows:

Commercial
Vehicle Group, Inc.

6530 West Campus Oval

New Albany, Ohio 43054

Fax No.: (614) 289-5360

Attention: Chad M. Utrup

     with a copy to:

Kirkland & Ellis LLP
200 East Randolph Drive

Chicago, IL 60601

Fax No.: (312) 861-2200

Attention: Dennis M. Myers, P.C.

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; three business days after being deposited in the mail,
postage prepaid, if mailed; when receipt is acknowledged by recipient’s facsimile machine operator,
if sent by facsimile transmission; and on the day delivered, if sent by overnight air courier
guaranteeing next day delivery.

     (c) No Inconsistent Agreements. The Company has not, as of the date hereof, entered into,
nor shall it, on or after the date hereof, enter into, any agreement with respect to its securities
that is inconsistent with the rights granted to the Holders herein or otherwise conflicts with the
provisions hereof.

     (d) Successors and Assigns. This Agreement shall be binding upon the Company and its
successors and assigns.

14

 

     (e) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.

     (f) Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.

     (g) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

     (h) Severability. If any one or more of the provisions contained herein, or the application
thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

     (i) Securities Held by the Company. Whenever the consent or approval of Holders of a
specified percentage of principal amount of Securities is required hereunder, Securities held by
the Company or its affiliates (other than subsequent Holders of Securities if such subsequent
Holders are deemed to be affiliates solely by reason of their holdings of such Securities) shall
not be counted in determining whether such consent or approval was given by the Holders of such
required percentage.

15

 

     If the foregoing is in accordance with your understanding of our agreement, please sign and
return to the Company a counterpart hereof, whereupon this instrument, along with all counterparts,
will become a binding agreement among the several Purchasers and the Company in accordance with its
terms.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	Commercial Vehicle Group, Inc.,
	 
	 	 	 	 
	 

	 	by	 	            /s/ Chad
M. Utrup
	 
	 	 	 	 
	 

	 	 	 	Name: Chad M. Utrup
	 

	 	 	 	Title: Chief Financial Officer
	 
	 	 	 	 
	 	 	Trim Systems, Inc.

Trim Systems Operating Corp.

National Seating Company

CVS Holdings, Inc.

Sprague Devices, Inc.

CVG Management Corporation

CVG Logistics LLC,
	 
	 	 	 	 
	 

	 	By	 	            /s/ Chad
M. Utrup
	 

	 	 	 	 
	 

	 	
	 	Name: Chad M. Utrup
	 

	 	
	 	Title: Chief Financial Officer
	 
	 	 	 	 
	 	 	Mayflower Vehicle Systems, LLC,
	 
	 	 	 	 
	 

	 	By	 	            /s/ Chad
M. Utrup
	 

	 	 	 	 
	 

	 	 	 	Name: Chad M. Utrup
	 

	 	 	 	Title: Treasurer and Secretary
	 
	 	 	 	 
	 	 	Monona Corporation

Monona Wire Corporation

Monona (Mexico) Holdings LLC,
	 
	 	 	 	 
	 

	 	By	 	            /s/ Chad
M. Utrup
	 

	 	 	 	 
	 

	 	 	 	Name: Chad M. Utrup
	 

	 	 	 	Title: Vice President and Assistant Secretary

16

 

The foregoing Registration Rights

Agreement is hereby confirmed

and accepted as of the date first

above written.

By Credit Suisse First Boston LLC,

	 	 	 	 	 	 	 
	 

	 	By	 	/s/ Robert A. Kobre	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Robert A. Kobre
	 	 
	 

	 	 	 	Title: Managing Director	 	 

Acting on behalf of itself and

as the Representative of

the several Purchasers

17

 

SCHEDULE A

List of the Guarantors

Trim Systems, Inc.

Trim Systems Operating Corp.

National Seating Company

CVS Holdings, Inc.

Sprague Devices, Inc.

CVG Management Corporation

CVG Logistics LLC

Mayflower Vehicle Systems LLC

Monona Corporation

Monona Wire Corporation

Monona (Mexico) Holdings LLC

18

 

ANNEX A

     Each broker-dealer that receives Exchange Securities for its own account pursuant to the
Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Securities. The Letter of Transmittal states that by so acknowledging and by
delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter”
within the meaning of the Securities Act. This Prospectus, as it may be amended or supplemented
from time to time, may be used by a broker-dealer in connection with resales of Exchange Securities
received in exchange for Initial Securities where such Initial Securities were acquired by such
broker-dealer as a result of market-making activities or other trading activities. The Company has
agreed that, for a period of 180 days after the Expiration Date (as defined herein), it will make
this Prospectus available to any broker-dealer for use in connection with any such resale. See
“Plan of Distribution”.

19

 

ANNEX B

     Each broker-dealer that receives Exchange Securities for its own account in exchange for
Initial Securities, where such Initial Securities were acquired by such broker-dealer as a result
of market-making activities or other trading activities, must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities. See “Plan of Distribution”.

20

 

ANNEX C

PLAN OF DISTRIBUTION

     Each broker-dealer that receives Exchange Securities for its own account pursuant to the
Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Securities. This Prospectus, as it may be amended or supplemented from time to time,
may be used by a broker-dealer in connection with resales of Exchange Securities received in
exchange for Initial Securities where such Initial Securities were acquired as a result of
market-making activities or other trading activities. The Company has agreed that, for a period of
180 days after the Expiration Date, it will make this prospectus, as amended or supplemented,
available to any broker-dealer for use in connection with any such resale. In addition, until
        , 200[l], all dealers effecting transactions in the Exchange Securities may be
required to deliver a prospectus.(1)

     The Company will not receive any proceeds from any sale of Exchange Securities by
broker-dealers. Exchange Securities received by broker-dealers for their own account pursuant to
the Exchange Offer may be sold from time to time in one or more transactions in the
over-the-counter market, in negotiated transactions, through the writing of options on the Exchange
Securities or a combination of such methods of resale, at market prices prevailing at the time of
resale, at prices related to such prevailing market prices or at negotiated prices. Any such
resale may be made directly to purchasers or to or through brokers or dealers who may receive
compensation in the form of commissions or concessions from any such broker-dealer or the
purchasers of any such Exchange Securities. Any broker-dealer that resells Exchange Securities
that were received by it for its own account pursuant to the Exchange Offer and any broker or
dealer that participates in a distribution of such Exchange Securities may be deemed to be an
“underwriter” within the meaning of the Securities Act and any profit on any such resale of
Exchange Securities and any commission or concessions received by any such persons may be deemed to
be underwriting compensation under the Securities Act. The Letter of Transmittal states that, by
acknowledging that it will deliver and by delivering a prospectus, a broker-dealer will not be
deemed to admit that it is an “underwriter” within the meaning of the Securities Act.

     For a period of 180 days after the Expiration Date the Company will promptly send additional
copies of this Prospectus and any amendment or supplement to this Prospectus to any broker-dealer
that requests such documents in the Letter of Transmittal. The Company has agreed to pay all
expenses incident to the Exchange Offer (including the expenses of one counsel for the Holders of
the Securities) other than commissions or concessions of any brokers or dealers and will indemnify
the Holders of the Securities (including any broker-dealers) against certain liabilities, including
liabilities under the Securities Act.

 

	(1)	 	In addition, the legend required by Item
502(e) of Regulation S-K will appear on the back cover page of the Exchange
Offer prospectus.

21

 

ANNEX D

o CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS
AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

     Name:

     Address:

     If the undersigned is not a broker-dealer, the undersigned represents that it is not engaged in,
and does not intend to engage in, a distribution of Exchange Securities. If the undersigned is a
broker-dealer that will receive Exchange Securities for its own account in exchange for Initial
Securities that were acquired as a result of market-making activities or other trading activities,
it acknowledges that it will deliver a prospectus in connection with any resale of such Exchange
Securities; however, by so acknowledging and by delivering a prospectus, the undersigned will not
be deemed to admit that it is an “underwriter” within the meaning of the Securities Act.

22Exhibit 10.1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (the “Agreement”) dated as of July 6, 2005 (the “Date of this
Agreement”), is made by and between Interchange Corporation, a Delaware corporation (the
“Employer”), and Stanley B. Crair (the “Executive”).

     WHEREAS, the Employer wishes to employ the Executive on the terms set forth below.

     WHEREAS, Executive wishes to accept such employment.

     Accordingly, the parties hereto agree as follows:

     1. Term. The Employer hereby employs the Executive, and the Executive hereby accepts
such employment, for an initial term commencing as of the Date of this Agreement and ending on the
first anniversary of such date, unless sooner terminated in accordance with the provisions of
Section 4 or Section 5; with such employment to continue thereafter for successive one-year periods
in accordance with the terms of this Agreement on each anniversary of the Date of this Agreement
(subject to termination as aforesaid) unless either party notifies the other party in writing not
less than thirty (30) days before expiration of the initial term and each annual renewal thereof
(the period during which the Executive is employed hereunder being hereinafter referred to as the
“Term”) of an intent not to renew this Agreement.

     2. Duties. During the Term, the Executive shall be employed by the Employer as its
Chief Operating Officer, and as such, the Executive shall faithfully perform for the Employer the
duties and have the powers customary for such position, including general financial oversight of
the Employer’s operations and preservation of the Company’s assets. During the Term, the Executive
shall be required to report to the CEO of the Employer (the “CEO”). The Executive shall devote
substantially all of his business time and effort to the performance of his duties hereunder, and
shall work primarily at the Employer’s main business offices.

     3. Compensation.

          3.1 Salary. The Employer shall pay the Executive during the Term a salary at the rate
of Two Hundred Thousand Dollars ($200,000) per annum (the “Annual Salary”), in accordance with the
customary payroll practices of the Employer applicable to senior executives, provided the payments
are no less frequent than monthly (or, if there is no such policy, payments shall be semi-monthly).
The Annual Salary shall be annually reviewed by the Employer for possible increases. The Annual
Salary shall be subject to possible further increase from time to time in the discretion of the CEO
or such committee of the Board as they shall designate for such purpose from time to time. Any
increased Annual Salary shall thereupon be the “Annual Salary” for the purposes hereof. The
Executive’s Annual Salary shall not be decreased without his prior written consent at any time
during the Term.

 

 

          3.2 Incentive Compensation. During the Employment Term, the Executive shall be
eligible to receive, in addition to his Annual Salary, an annual bonus (the “Bonus”) of up to 30%
of the Annual Salary through 2005 and up to 50% of the Annual Salary thereafter. The amount of
such Bonus and any performance standards or goals required to be attained in order to receive such
Bonus shall be mutually agreed upon by Executive and the CEO or such committee of the Board as they
shall designate for such purpose from time to time. The Bonus shall be declared and paid on or
before the thirtieth day following each quarterly period.

          3.3 Stock Options. The Executive shall be granted options (the “Options”) to purchase
One Hundred Thirty Three Thousand Five Hundred (133,500) shares of the common stock of the Employer
pursuant to the Employer’s Equity Incentive Plans which, at the option of the Executive as of their
date of grant, may be intended to qualify as “incentive stock options” within the meaning of
Section 422 of the Internal Revenue Code of 1986, as amended. Such options shall have an exercise
price equal to the closing stock price on the date of grant. Such options will vest over a period
of 3 years, with 25% after nine months from date of grant and the remainder on a monthly basis
thereafter, provided that the Executive is employed by the Employer as of each such Option vesting
date. The vesting period shall be subject to possible acceleration in the discretion of the CEO or
such committee of the Board as they shall designate for such purpose from time to time. Such
options shall become fully vested immediately upon (i) a Change of Control, defined below, of the
Employer, or (ii) a termination of the executive by Employer without Cause (defined in Section
5.1(a) below, or a termination by Executive for Good Reason (defined in Section 5.2(a) below), if
the same occurs within 120 days prior to the execution and delivery of an acquisition, merger,
consolidation or other agreement which results in a Change of Control. For purposes of this
Agreement “Change of Control” shall be deemed to have occurred if, as a result of a tender offer,
other acquisition, merger, consolidation or sale or transfer of assets, any person(s) (as used in
Sections 13(d) or 14(d) of the Securities Exchange Act of 1934 (“SEA”)) becomes the beneficial
owner (as defined in Rule 13(d)-3 of the SEA) of a total of fifty percent (50%) or more of either
the outstanding shares of Employer’s stock or Employer’s assets; provided, however, that a change
of control shall not be deemed to have occurred if a person who beneficially owned 50% or more of
the Employer’s stock as of the effective date of this Agreement continued to do so during the term
of this Agreement. The terms of this Section 3.3 shall be included in the applicable stock option
agreement between Employer and Executive relating to the issuance of the Options.

          3.4 Benefits. Except otherwise provided herein, the Executive shall be entitled to
participate in any group life, medical or disability insurance plans, health programs, retirement
plans, fringe benefit programs and similar benefits that may be available to other senior
executives of the Employer generally, on the same terms as such other executives, to the extent
that the Executive is eligible under the terms of such plans or programs as they may be in effect
from time to time. Employer will provide coverage for the Executive under the Employer’s health
benefits plan and will pay 100% of the cost of spouse or dependent coverage up to a total of $500
per month. Coverage under the health benefits plan will be in effect commencing with the first
month following employment.

2

 

          3.5 Expenses. The Employer shall pay or reimburse the Executive for all ordinary and
reasonable out-of-pocket expenses actually incurred (and, in the case of reimbursement, paid) by
the Executive during the Term in the performance of the Executive’s services under this Agreement,
provided that the Executive submits proof of such expenses, with the properly completed forms as
prescribed from time to time by the Employer, no later than 30 days after the end of the monthly
period in which such expenses have been so incurred. In addition, the Employer will pay the
Executive’s reasonable relocation expenses, if any, which shall consist of moving company expenses
during the transition period, plus closing costs (to include realtor’s fees, title and escrow costs
and other such normal and customary closing costs associated with the sale and buying of a home),
such expenses to be approved in advance, in writing, by the Company, with total moving costs not to
exceed $80,000. Employer will also pay Executive a monthly car allowance during the time he
commutes from his current home to Employer’s place of business of $550 per month, such payment to
terminate upon completion of his move, or 13 months, whichever is earlier. However, should
Executive’s employment terminate pursuant to Section 5.1 within one year of payment for moving
expenses, then Executive will, within 30 days after said Termination, reimburse Employer for a
pro-rata portion of already-paid moving expense, less any applicable taxes already paid or due.
For example, should Executive’s employment terminate for Cause six months after payment for moving
expenses, then Executive will reimburse Employer for one-half of moving expenses paid (six months
divided by twelve months), less any applicable taxes.

     4. Termination upon Death or Disability. If the Executive dies during the Term, the
Term shall terminate as of the date of death, and the obligations of the Employer to or with
respect to the Executive shall terminate in their entirety upon such date except as otherwise
provided under this Section 4. If the Executive becomes disabled for purposes of the long-term
disability plan of the Employer for which the Executive is eligible, or, in the event that there is
no such plan, if the Executive by virtue of ill health or other disability is unable to perform
substantially and continuously the duties assigned to him for more than 180 consecutive or
non-consecutive days out of any consecutive 12-month period, then the Employer shall have the
right, to the extent permitted by law, to terminate the employment of the Executive upon notice in
writing to the Executive. Upon termination of employment due to death or disability, (i) the
Executive (or the Executive’s estate or beneficiaries in the case of the death of the Executive)
shall be entitled to receive any Annual Salary and other benefits earned and accrued under this
Agreement prior to the date of termination (and reimbursement under this Agreement for expenses
incurred prior to the date of termination), including, but not limited to a pro-rata Bonus for the
year of termination (which in no event shall be less than a similar pro-rata portion of the
Executive’s bonus for the preceding year) to be paid at such time as Bonuses are ordinarily paid;
(ii) in the case of termination due to disability, the Executive shall be entitled to receive his
Annual Salary for the lesser of six (6) months following such termination, or the period until long
term disability insurance benefits commence under disability coverage furnished by the Employer to
the Executive; and (iii) the Executive (or, in the case of his death, his estate and beneficiaries)
shall have no further rights to any other compensation or benefits hereunder on or after the
termination of employment, or any other rights hereunder, except as otherwise provided in the plans
and policies of the Employer.

3

 

     5. Certain Terminations of Employment.

          5.1 Termination for Cause; Termination of Employment by the Executive without Good
Reason.

          (a) For purposes of this Agreement, “Cause” shall mean the Executive’s:

          (i) conviction of (or pleading nolo contendere to) a felony involving the crime of
theft or a related or similar act of unlawful taking, or a felony involving the federal or
California securities or pension laws, or any felony , which results in material economic
harm to the Employer;

          (ii) engagement in the performance of his duties hereunder or otherwise to the material
and demonstrable detriment of the Employer, in willful misconduct, willful or gross neglect,
fraud, misappropriation or embezzlement;

          (iii) After notice from the Board of Directors, and, if requested by Executive, the
opportunity to be heard by the Board of Directors, the failure to adhere to the lawful and
reasonable directions of the Board that are consistent with the terms of this Agreement, or
the failure to devote substantially all of the business time and effort to the Employer
(except for any activities expressly authorized by the Employer);

          (iv) material breach of any of the provisions of Section 6, other than inadvertent
breaches; or

          (v) breach in any material respect of the terms and provisions of this Agreement and
failure to cure such breach within thirty (30) days following written notice from the
Employer specifying such breach; provided however, if Executive delivers written notice to
Employer during the 30 day cure period requesting to be heard at a meeting of the Board of
Directors, his termination under this Section 5.2(a)(v) shall not be effective until such
Board of Directors meeting at which Executive had an opportunity to be heard.

provided that Cause shall not exist except on written notice given to the Executive at any time not
more than 60 days following the occurrence of any of the events described above (or, if later, the
Employer’s knowledge thereof), which events in any case must have occurred after the effective date
of this Agreement.

          (b) The Employer may terminate the Executive’s employment hereunder for Cause, and the
Executive may terminate his employment for any or no reason on at least 30 days’ and not more than
60 days’ written notice given to the Employer. If the Employer terminates the Executive for Cause,
or the Executive terminates his employment and the termination by the Executive is not covered by
Section 4 or 5.2, (i) the Executive shall receive Annual Salary and other benefits earned and
accrued under this Agreement prior to the termination of employment (and reimbursement under this
Agreement for expenses incurred prior to the termination of employment); and (ii) the Executive
shall have no further rights to any other compensation or

4

 

benefits hereunder on or after the termination of employment, or any other rights hereunder,
except as otherwise provided in the plans and policies of the Employer.

          5.2 Termination by the Employer without Cause; or by the Executive for Good Reason.

          (a) For purposes of this Agreement, “Good Reason” shall mean, unless otherwise consented to in
writing by the Executive;

          (i) a reduction in Annual Salary or in benefits of the Executive, or the failure of the
Employer timely to make any Annual Salary payment due to the Executive, provided that such
deferral or failure to pay continues unremedied for more than thirty (30) days;

          (ii) any action by the Employer that results in a material diminution in the
Executive’s position, authority, duties or responsibilities; provided that the appointment
to the office of Chief Operating Officer of another person approved by the Executive shall
be deemed not to be a material diminution in the Executive’s position, authority, duties or
responsibilities;

          (iii) a material breach of any provision of this Agreement by the Employer or;

          (iv) a failure of the Employer to have a successor entity specifically assume this
Agreement.

     Notwithstanding the foregoing, (i) Good Reason shall not be deemed to exist unless notice of
termination on account thereof (specifying a termination date no later than 30 days from the date
of such notice) is given no later than 60 days after the time at which the event or condition
purportedly giving rise to Good Reason first occurs or arises (or when the Executive first becomes
aware of such circumstances); and (ii) if there exists (without regard to this clause (ii)) an
event or condition that constitutes Good Reason, the Employer shall have 30 days from the date
notice of such a termination is given to cure such event or condition and, if the Employer does so
fully cure such event or condition, such event or condition shall not constitute Good Reason
hereunder.

          (b) The Employer may terminate the Executive’s employment at any time for any reason or no
reason and the Executive may terminate the Executive’s employment with the Employer for Good
Reason. A notice of non-renewal shall constitute a termination of employment by the Employer
without Cause.

          (c) If the Employer terminates the Executive’s employment and the termination is not covered
by Section 4 or 5.1, or the Executive terminates his employment for Good Reason, the Executive
shall receive:

5

 

          (i) Annual Salary and other benefits earned and accrued under this Agreement prior to
the termination of employment (and reimbursement under this Agreement for expenses incurred
prior to the termination of employment);

          (ii) the greater of (A) the Annual Salary for the unexpired Term of this Agreement,
payable over such Term, and (B) one (1) times the Annual Salary payable in accordance with
standard payroll practices of the Company;

          (iii) an amount equal to the average of all Bonuses earned during the Term, payable in
accordance with standard bonus payment practices of the Company, or (B) immediately, if and
to the extent the same will be used by Executive to exercise his stock option as provided in
clause (v) below;

          (iv) reimbursement for COBRA payments equal to employee’s regular monthly contributions
toward the Executive’s health insurance benefits for the twelve (12) month period following
the termination date if the Executive elects COBRA benefits, and;

          (v) the right to exercise any or all vested stock options for a period of twelve (12)
months after the effective date of termination of Executive’s employment; provided however,
(A) in the event the termination occurs within 120 days of the execution of a Change of
Control agreement as provided in Section 3.3 above, vesting of all options shall be
accelerated as provided in Section 3.3 above, and (B) in the event the termination occurs at
a time not within such 120 day period, for purposes of this provision, all unvested options
that would have vested had this Agreement remained in force through the end of the initial
Term, shall be fully vested immediately prior to the termination under this Section 5.2(c);
The provisions of this subparagraph (v) shall be included in any stock option agreement
between the Employer and the Executive.

     In order to be eligible to receive the benefits specified under sections 5.2(c)(ii) – (iv),
the Executive must execute a general release of claims in a form acceptable to the Employer, which
shall not apply to the Employer’s obligations described above in this Section 5.2(c).

     6. Invention, Non-Disclosure and Non-Competition.

          6.1 Inventions and Patents.

          (a) The Executive will promptly and fully disclose to the Employer any and all inventions,
discoveries, improvements, ideas, developments, designs, products, formulas, software programs,
processes, techniques, technology, know-how, negative know-how, data, research, technical data and
original works of authorship (whether or not patentable or registrable under patent, copyright or
similar statutes and including all rights to obtain, register, perfect and enforce those
proprietary interests) that are related to or useful in the Employer’s present or future business
or result from use of property owned, leased, or contracted for by the Employer and which the
Executive develops, makes, conceives or reduces to practice during the Executive’s employment by
the Employer, either solely or jointly with others (collectively, the

6

 

“Developments”). All such Developments shall be the sole property of the Employer, and the
Executive hereby assigns to the Employer, without further compensation, all of the Executive’s
right, title and interest in and to such Developments and any and all related patents, patent
applications, copyrights, copyright applications, trademarks, service marks and trade names in the
United States and elsewhere.

          (b) The Executive shall disclose promptly to an officer or to attorneys of the Employer in
writing any inventions, discoveries, improvements, ideas, developments, designs, products,
formulas, software programs, processes, techniques, technology, know-how, negative know-how, data,
research, technical data and original works of authorship, whether or not patentable or registrable
under patent, copyright or similar statutes, the Executive may conceive, make, develop or work on,
in whole or in part, solely or jointly with others during the Executive’s employment, for the
purpose of permitting the Employer to determine whether they constitute Developments. The Employer
shall receive such disclosures in confidence.

          (c) The Executive will keep and maintain adequate and current written records of all
Developments (in the form of notes, sketches, drawings and as may be specified by the Employer),
which records shall be available to and remain the sole property of the Employer at all times.

          (d) The Executive will assist the Employer in obtaining and enforcing patent, copyright,
trademark, service marks and other forms of legal protection for the Developments in any country.
Upon request, the Executive will sign all applications, assignments, instruments and papers and
perform all acts necessary or desired by the Employer to assign all such Developments fully and
completely to the Employer and to enable the Employer, its successors, assigns and nominees, to
secure and enjoy the full and exclusive benefits and advantages thereof.

          (e) The Executive understands that the Executive’s obligations under this section will
continue after the termination of the Executive’s employment with the Employer and that during the
Executive’s employment the Executive will perform such obligations without further compensation,
except for reimbursement of expenses incurred at the request of the Employer. The Executive
further understands that if the Executive is not employed by the Employer as an employee at the
time the Executive is requested to perform any obligations under this section, the Executive shall
receive for such performance a reasonable per diem fee, as well as reimbursement of any expenses
incurred at the request of the Employer.

          (f) Any provision in this Agreement requiring the Executive to assign the Executive’s rights
in all Developments shall not apply to an invention that qualifies fully under the provisions of
California Labor Code section 2870, the terms of which are set forth below:

          (i) Any provision in an employment agreement which provides that an employee
shall assign, or offer to assign, any of his or her rights in an invention to his or
her employer shall not apply to an invention that the employee developed entirely on
his or her own time without using the employer’s

7

 

equipment, supplies, facilities, or trade secret information except for those
inventions that either:

               (1) Relate at the time of conception or reduction to practice of the invention
to the employer’s business, or actual or demonstrably anticipated research or
development of the employer; or

               (2) Result from any work performed by the employee for the employer.

          (ii) To the extent a provision in an employment agreement purports to require
an employee to assign an invention otherwise excluded from being required to be
assigned under subdivision (i), the provision is against the public policy of this
state and is unenforceable.

          6.2 Proprietary Information.

          (a) The Executive recognizes that the Executive’s relationship with the Employer is one of
high trust and confidence by reason of the Executive’s access to and contact with the trade secrets
and confidential and proprietary information of the Employer including, without limitation,
information not previously disclosed to the public regarding current and projected revenues,
expenses, costs, profit margins and any other financial and budgeting information; marketing and
distribution plans and practices; business plans, opportunities, projects and any other business
and corporate strategies; product information; names, addresses, terms of contracts and other
arrangements with customers, suppliers, agents and employees of the Employer; confidential and
sensitive information regarding other employees, including information with respect to their job
descriptions, performance strengths and weaknesses, and compensation; and other information not
generally known regarding the business, affairs and plans of the Employer (collectively, the
“Proprietary Information”). The Executive acknowledges and agrees that Proprietary Information is
the exclusive property of the Employer and that the Executive shall not at any time, either during
the Executive’s employment with the Employer or thereafter disclose to others, or directly or
indirectly use for the Executive’s own benefit or the benefit of others, any of the Proprietary
Information.

          (b) The Executive acknowledges that the unauthorized use or disclosure of Proprietary
Information would be detrimental to the Employer and would reasonably be anticipated to materially
impair the Employer’s value.

          (c) The Executive’s undertakings and obligations under this Section 6.2 will not apply,
however, to any Proprietary Information which: (a) is or becomes generally known to the public
through no action on the Executive’s part, (b) is generally disclosed to third parties by the
Employer without restriction on such third parties, (c) is approved for release by written
authorization of the Board, (d) is known to the Executive other than as a result of work performed
for the Employer, or (e) is required to be disclosed by law or governmental or court process or
order.

8

 

          (d) Upon termination of the Executive’s employment with the Employer or at any other time upon
request, the Executive will promptly deliver to the Employer all notes, memoranda, notebooks,
drawings, records, reports, written computer code, files and other documents (and all copies or
reproductions of such materials) in the Executive’s possession or under the Executive’s control,
whether prepared by the Executive or others, which contain Proprietary Information. The Executive
acknowledges that this material is the sole property of the Employer.

          6.3 Covenant Not to Compete.

          (a) During the time that this Agreement is in effect, the Executive shall not directly or
indirectly:

          (i) own, engage in, conduct, manage, operate, participate in, be employed by, be
connected in any manner whatsoever with, or render services or advice to (whether for
compensation or without compensation), any other person or business entity which, in the
sole judgment of the Employer, directly or indirectly competes with the Business of the
Employer (as hereinafter defined); or

          (ii) recruit or otherwise solicit or induce any employee of the Employer to terminate
his or her employment with, or otherwise cease his or her relationship with, the Employer in
order to join any person or entity which, in the sole judgment of the Employer, competes
with the Business of the Employer.

          (b) For a period of 12 months after the expiration or termination of this Agreement, the
Executive shall not directly or indirectly recruit or otherwise solicit or induce any employee of
the Employer to terminate his or her employment with, or otherwise cease his or her relationship
with, the Employer in order to join any person or entity which, in the sole judgment of the
Employer, competes with the business of the employer as engaged in at the expiration or termination
of this Agreement.

          (c) The obligations set forth in paragraphs 6.3(a) and (b) above shall not restrict the
Executive’s right to invest in the securities (not to exceed 1% of the outstanding securities of
any class) of any publicly-held corporation in the management of which the Executive does not
participate.

          (d) For purposes of Section 6.3(a), “Business of the Employer” means the business of Employer
as engaged in from time to time during the term of this Agreement, including, but not limited to,
paid search.

          (e) Absence of Restrictions Upon Disclosure and Competition.

          (f) The Executive hereby represents that, except as the Executive has disclosed in writing to
the Employer on Exhibit A attached hereto, the Executive is not bound by the terms of any agreement
with any previous employer or other party to refrain from using or disclosing any trade secret or
confidential or proprietary information in the course of the

9

 

Executive’s employment with the Employer or to refrain from competing, directly or indirectly,
with the business of such previous employer or any other party.

          (g) The Executive further represents that the Executive’s performance of all the terms of this
Agreement and as an employee of the Employer does not and will not breach any agreement to keep in
confidence proprietary information, knowledge or data acquired by the Executive in confidence or in
trust prior to his employment with the Employer, and the Executive will not disclose to the
Employer or induce the Employer to use any confidential or proprietary information or material
belonging to any previous employer or others.

          6.4 Other Obligations. The Executive acknowledges that the Employer from time to time
may have agreements with other persons or with the U.S. Government or agencies thereof, which
impose obligations or restrictions on the Employer regarding inventions made during the course of
work under such agreements or regarding the confidential nature of such work. The Executive agrees
to be bound by all such obligations and restrictions which are made known to the Executive and to
take all action necessary to discharge the obligations of the Employer under such agreements.

          6.5 Rights and Remedies upon Breach. The Executive acknowledges and agrees that any
breach by him of any of the provisions of Section 6 (the “Restrictive Covenants”) would result in
irreparable injury and damage for which money damages may not provide an adequate remedy.
Therefore, if the Executive breaches any of the provisions of Section 6, the Employer shall have
the following rights and remedies, each of which rights and remedies shall be independent of the
other and severally enforceable, and all of which rights and remedies shall be in addition to, and
not in lieu of, any other rights and remedies available to the Employer under law or in equity
(including, without limitation, the recovery of damages) the right and remedy to have the
Restrictive Covenants specifically enforced (without posting bond and without the need to prove
damages) by any court having equity jurisdiction, including, without limitation, the right to an
entry against the Executive of restraining orders and injunctions (preliminary, mandatory,
temporary and permanent) against violations, threatened or actual, and whether or not then
continuing, of such covenants.

     7. Other Provisions.

          7.1 Severability. The Executive acknowledges and agrees that (i) he has had an
opportunity to seek advice of counsel in connection with this Agreement and (ii) the Restrictive
Covenants are reasonable in geographical and temporal scope and in all other respects. If it is
determined that any of the provisions of this Agreement, including, without limitation, any of the
Restrictive Covenants, or any part thereof, is invalid or unenforceable, the remainder of the
provisions of this Agreement shall not thereby be affected and shall be given full effect, without
regard to the invalid portions.

          7.2 Duration and Scope of Covenants. If any court or other decision-maker of
competent jurisdiction determines that any of the Executive’s covenants contained in this
Agreement, including, without limitation, any of the Restrictive Covenants, or any part thereof, is

10

 

unenforceable because of the duration or geographical scope of such provision, then, after
such determination has become final and unappealable, the duration or scope of such provision, as
the case may be, shall be reduced so that such provision becomes enforceable and, in its reduced
form, such provision shall then be enforceable and shall be enforced.

          7.3 Resolution of Differences Over Breaches of Agreement. The parties shall use good
faith efforts to resolve any controversy or claim arising out of, or relating to this Agreement or
the breach thereof. If, despite their good faith efforts, the parties are unable to resolve such
controversy or claim through the Employer’s internal review procedures, then such controversy or
claim shall be resolved by binding arbitration before a single, mutually acceptable arbitrator
under the rules of the Judicial Arbitration and Mediation Service in Orange County, California and
judgment upon the award rendered by the arbitrator(s) may be entered in any court having
jurisdiction thereof. If any contest or dispute shall arise between the Employer and the Executive
regarding any provision of this Agreement, the prevailing party, as determined by the Arbitrator,
shall be entitled to an award of all legal fees, costs, and expenses reasonably incurred in
connection with such contest or dispute.

          7.4 Notices. All notices or deliveries authorized or required pursuant to this
Agreement shall be deemed to have been given when in writing and when (i) deposited in the U.S.
mail, certified, return receipt requested, postage prepaid, or (ii) otherwise delivered by hand or
by overnight delivery, against written receipt, by a common carrier or commercial courier or
delivery service addressed to the parties at the following addresses or to such other addresses as
either may designate in writing to the other party:

	 	 	 	 	 
	 

	 	to the Employer:
	 	Interchange Corporation
	 

	 	 	 	24422 Avenida de la Carlotta
	 

	 	 	 	Suite 120
	 

	 	 	 	Laguna Hills, CA 92653
	 
	 	 	 	 
	 

	 	 	 	Attention: Heath Clarke, CEO
	 
	 	 	 	 
	 

	 	to the Executive:
	 	Stanley B. Crair
	 

	 	 	 	2125 El Molino Pl.
	 

	 	 	 	San Marino, CA 91108
	 

	 	 	 	Fax: 954-697-8214

          7.5 Entire Agreement. This Agreement, together with the Option Agreement described in
Section 3.3, contains the entire agreement between the parties with respect to the subject matter
hereof and supersedes all prior agreements, written or oral, with respect thereto.

          7.6 Waivers and Amendments. This Agreement may be amended, superseded, canceled,
renewed or extended, and the terms hereof may be waived, only by a written instrument signed by the
parties or, in the case of a waiver, by the party waiving compliance. No delay on the part of any
party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor
shall any waiver on the part of any party of any such right, power or privilege

11

 

nor any single or partial exercise of any such right, power or privilege, preclude any other
or further exercise thereof or the exercise of any other such right, power or privilege.

          7.7 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

          7.8 Assignment. This Agreement, and the Executive’s rights and obligations hereunder,
may not be assigned by the Executive; any purported assignment by the Executive in violation hereof
shall be null and void. In the event of any sale, transfer or other disposition of all or
substantially all of the Employer’s assets or business, whether by merger, consolidation or
otherwise, the Employer may assign this Agreement and its rights hereunder; provided that such
assignment shall not limit the Employer’s liability under this Agreement to the Executive.

          7.9 Withholding. The Employer shall be entitled to withhold from any payments or
deemed payments any amount of tax withholding required by law.

          7.10 Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the parties and their respective successors, permitted assigns, heirs, executors and legal
representatives.

          7.11 Counterparts. This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original but all such
counterparts together shall constitute one and the same instrument. Each counterpart may consist
of two copies hereof each signed by one of the parties hereto.

          7.12 Survival. Anything contained in this Agreement to the contrary notwithstanding,
the provisions of Sections 6, 7. 3, 7. 9 and 7.14, and the other provisions of this Section 7 (to
the extent necessary to effectuate the survival of Sections 6, 7.3, 7.9 and 7.14), shall survive
termination of this Agreement and any termination of the Executive’s employment hereunder.

          7.13 Headings. The headings in this Agreement are for reference only and shall not
affect the interpretation of this Agreement.

          7.14 Indemnification; Directors and Officers Insurance. To the fullest extent
permitted by law, the Employer shall indemnify, defend and hold harmless the Executive from and
against all actual or threatened actions, suits or proceedings, whether civil or criminal,
administrative or investigative, together with all attorneys’ fees and costs, fines, judgments or
settlements imposed upon or incurred by the Executive in connection therewith, that arise from the
Executive’s employment by, or serving as an officer of, the Employer, so long as the Executive
acted or refrained from acting legally and in good faith or reasonably believed that his actions or
refraining from acting were legal and performed or omitted in good faith. Employer currently has
directors and officers liability insurance and will use reasonable efforts to maintain such
insurance coverage during the term of this Agreement.

12

 

     IN WITNESS WHEREOF, the parties hereto have signed their names as of the day and year first
above written to this Executive Agreement.

	 	 	 
	 

	EMPLOYER
	 
	 	 
	 

	INTERCHANGE CORPORATION,
	 
	 	 
	 

	a Delaware corporation
	 
	 	 
	 

	By: 	/s/ Douglas S. Norman,
	 

	 	     
	 

	Chief Financial Officer
	 
	 	 
	 

	EXECUTIVE
	 
	 	 
	 

	/s/ Stanley B. Crair
	 
	 	 
	 

	 

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Exhibit A

Invention, Non-Disclosure and Non-Competition Agreement

     Please list terms of any agreements with any previous employer or other party which restrains
you from using or disclosing any trade secret or confidential or proprietary information in the
course of your employment with ___________________ or restrains you from competing directly or
indirectly with the business of such previous employer or any other party.

 

14

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