Document:

Exhibit
10.04

 

SECOND AMENDMENT TO

CREDIT
AGREEMENT

 

THIS SECOND AMENDMENT TO
CREDIT AGREEMENT (this “Amendment”) is made and entered into as of
February 12, 2004, by BANK ONE, NA, a national banking association having its
principal office in Chicago, Illinois, as Lender; MAGNETEK, INC., a Delaware
corporation (“MagneTek”), MAGNETEK ADS POWER, INC., a Delaware
corporation and Subsidiary of MagneTek, and MAXTEC INTERNATIONAL CORP., a
Delaware corporation and Subsidiary of MagneTek, as Borrowers; and MAGNETEK
LEASING CORPORATION, a Delaware corporation, MAGNETEK MONDEL HOLDING, INC., a
Delaware corporation, MAGNETEK NATIONAL ELECTRIC COIL, INC., a Delaware
corporation, MONDEL ULC, an unlimited liability corporation organized under the laws of Nova
Scotia, Canada, and MXT HOLDINGS, INC., an Illinois corporation, as Guarantors.

 

Recitals

 

A.            The Borrowers, the Guarantors and the Lender have entered
into a Credit Agreement dated as of August 15, 2003, as amended by the First
Amendment to Credit Agreement dated as of November 25, 2003 (as amended, the “Credit
Agreement”).  Capitalized terms used,
but not defined, in this Amendment which are defined in the Credit Agreement
will have the meanings given to them in the Credit Agreement.

 

B.            The Borrowers and the Guarantors desire that the Lender
(i) waive certain Defaults and (ii) agree to certain amendments to the Credit
Agreement, all as contemplated by the terms, and subject to the conditions, of
this Amendment.

 

C.            Lender is willing to amend the Credit Agreement as contemplated
by the terms, and subject to the conditions, of this Amendment.

 

Statement of
Amendment

 

In consideration of the
mutual covenants and agreements and the conditions set forth in this Amendment,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Lender, the Borrowers, and the Guarantors hereby
agree as follows:

 

1.             Waiver of Current Known Defaults.  Defaults have occurred under the Credit
Agreement as a consequence of the violation of (i) Section 6.29.2 of the
Credit Agreement with respect to the Fiscal Quarter beginning September 29,
2003 and ending on December 28, 2003 resulting from the Fixed Charge Coverage
Ratio being less than 1.25:1.00 for such Test Period, (ii) Section 6.29.3
of the Credit Agreement with respect to the Two Fiscal Quarters beginning June
30, 2003 and ending on December 28, 2003 resulting from Consolidated EBITDA
being less than $150,000 for such Test Period

 

 

(collectively, the “Current Known Defaults”).  The Borrowers have requested that Lender
waive the Current Known Defaults.  Lender
hereby waives the Current Known Defaults. 
The waiver provided by this Amendment will not apply to any other
Default or Unmatured Default, whether past, present, or future.  The waiver provided by this Amendment, either
alone or together with other waivers which Lender may give from time to time,
shall not, by course of dealing, implication or otherwise, obligate Lender to
waive any Default or Unmatured Default, past, present or future, other than
those specifically waived by this Amendment, or reduce, restrict or in any way
affect the discretion of Lender in considering any future waiver requested by
the Borrowers.

 

2.             Amendments to Credit
Agreement.

 

2.1           Section 5.23 of the Credit
Agreement is hereby amended in its entirety by substituting the following in
its stead:

 

5.23.        Affiliate Transactions.  Except as set forth on Schedule 5.23,
as of the Closing Date, there are no existing or proposed agreements,
arrangements, understandings, or transactions between any Loan Party and any of
the officers, members, managers, directors, stockholders, parents, other
interest holders, employees, or Affiliates (other than Subsidiaries) of any
Loan Party or any members of their respective immediate families, any of which
matters would be required to be disclosed in a proxy statement of MagneTek,
other than matters which are disclosed in its 2002 proxy statement.  For the Fiscal Year of the Borrowers ending in
June, 2004 and each Fiscal Year ending thereafter, the Borrowers will
allocate corporate and other overhead expenses of MagneTek to SPA.  The amount allocated to SPA (“Allocated
Overhead Amount”) will be at least $1,000,000 per Fiscal Quarter.  SPA will pay in cash, or accrue, each payment
of the quarterly Allocated Overhead Amount on October 1, 2003 and will continue
to pay in cash, or accrue, each payment of the Allocated Overhead Amount on the
first day of each calendar quarter thereafter occurring; provided
however,  if, as of any
October 1, January 1, April 1 or July 1 occurring after February 12, 2004
(each, a “SPA Payment Date”), the average daily principal amount of the
Loans outstanding for the calendar quarter immediately preceding such SPA
Payment Date is greater than $5,000,000, SPA will pay in cash, rather than
accrue, the payment on the Allocated Overhead Amount due on such SPA Payment
Date and due on each SPA Payment Date thereafter occurring, even if the average
daily principal amount of the Loans outstanding for any or all calendar quarter(s)
thereafter occurring is less than $5,000,000. 
All payments of the Allocated Overhead Amount that are accrued shall be
due to MagneTek on MagneTek’s demand, and MagneTek shall not take any actions,
or enter into any agreements, that would limit, restrict or defer its rights to
receive such payments.  All of the
Capital Stock of J-Tec was sold, and the

 

2

 

proceeds
of such sale were received by MagneTek, on or before the Closing Date.

 

2.2           Section 6.29.3 of the Credit
Agreement is hereby amended in its entirety by substituting the following in
its stead:

 

6.29.3. Minimum EBITDA.  The Borrowers shall not permit Consolidated
EBITDA (“EBITDA Covenant”) to be less than the amounts set
opposite the Test Periods set forth below:

 

	
  Test Period

  	
   

  	
  Minimum EBITDA

  
	
   

  	
   

  	
   

  
	
  Three Fiscal Quarters
  beginning June 30, 2003 and ending on March 28, 2004

  	
   

  	
  $

  	
  150,000

  
	
   

  	
   

  	
   

  
	
  Four Consecutive Fiscal
  Quarters ending June 27, 2004

  	
   

  	
  $

  	
  1,100,000

  
	
   

  	
   

  	
   

  
	
  Four Consecutive Fiscal
  Quarters ending September 26, 2004

  	
   

  	
  $

  	
  2,750,000

  
	
   

  	
   

  	
   

  
	
  Four Consecutive Fiscal
  Quarters ending December 26, 2004

  	
   

  	
  $

  	
  3,400,000

  
	
   

  	
   

  	
   

  
	
  Four Consecutive Fiscal
  Quarters ending March 27, 2005

  	
   

  	
  $

  	
  4,125,000

  
	
   

  	
   

  	
   

  
	
  Four Consecutive Fiscal
  Quarters ending June 26, 2005

  	
   

  	
  $

  	
  4,800,000

  
	
   

  	
   

  	
   

  
	
  Four Consecutive Fiscal
  Quarters ending September 25, 2005 and each Four Consecutive Fiscal Quarters
  thereafter

  	
   

  	
  $

  	
  5,500,000

  

 

2.3           Section 6.34(b) of the Credit
Agreement is hereby amended in its entirety by substituting the following in
its stead:

 

(b)           PEG:

 

3

 

	
  Test Period

  	
   

  	
  Minimum Operating Profit of PEG

  
	
   

  	
   

  	
   

  
	
  Three Fiscal Quarters beginning June 30, 2003 and
  ending on March 28, 2003

  	
   

  	
  $

  	
  (350,000)

  
	
   

  	
   

  	
   

  
	
  Four Fiscal Quarters beginning June 30, 2003 and ending
  on June 27, 2004

  	
   

  	
  $

  	
  25,000

  
	
   

  	
   

  	
   

  
	
  Four Consecutive Fiscal Quarters ending September
  26, 2004 and each Four Consecutive Fiscal Quarters ending thereafter

  	
   

  	
  $

  	
  400,000

  

 

3.             Representations. 
To induce Lender to accept this Amendment, the Borrowers and the
Guarantors hereby represent and warrant to the Lender as follows:

 

3.1           Each Borrower and Guarantor has full
power and authority to enter into, and to perform its obligations under, this
Amendment, and the execution and delivery of, and the performance of its
obligations under and arising out of, this Amendment have been duly authorized
by all necessary corporate action.

 

3.2           This Amendment constitutes the legal,
valid and binding obligations of each Borrower and Guarantor enforceable in
accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization or similar laws affecting creditors’
rights generally.

 

3.3           Each of the Borrower’s and each of
the Guarantor’s representations and warranties contained in the Loan Documents
are complete and correct as of the date of this Amendment (other than a representation or warranty that
is stated to relate solely to an earlier date) with the same effect as
though such representations and warranties had been made again on and as of the
date of this Amendment, subject to those changes as are not prohibited by, or
do not constitute a Default under, the Loan Documents.

 

3.4           No Default or Unmatured Default has
occurred and is continuing, other than the Current Known Defaults.

 

4.             Costs and Expenses; Fee.  The Borrowers will promptly on demand pay or
reimburse the Lender for the reasonable costs and expenses incurred by the
Lender in connection with this Amendment. 
The Borrowers will pay to Lender an amendment and waiver fee in the
amount of $25,000 upon Lender’s execution of this Amendment.

 

5.             Release. 
The Borrowers and the Guarantors hereby release the Lender from any and
all liabilities, damages and claims arising from or in any way related to the
Loans,

 

4

 

other than such liabilities, damages and claims which arise after the
execution of this Amendment.  The
foregoing release does not release or discharge, or operate to waive
performance by, the Lender of its express agreements and obligations stated in
the Loan Documents on and after the date of this Amendment.

 

6.             Continuing Effect of Credit Agreement.  Except as expressly amended hereby, all of
the provisions of the Credit Agreement are ratified and confirmed and remain in
full force and effect.

 

7.             One Agreement; References; Fax Signature.  The Credit Agreement, as amended by this
Amendment, will be construed as one agreement. 
All references in any of the Loan Documents to the Credit Agreement will
be deemed to be references to the Credit Agreement as amended by this
Amendment.  This Amendment may be signed
by facsimile signatures, and if so signed, (i) may be relied on by each party
as if the document were a manually signed original and (ii) will be binding on
each party for all purposes.

 

8.             Captions.  The headings to the Sections of
this Amendment have been inserted for convenience of reference only and shall
in no way modify or restrict any provisions hereof or be used to construe any
such provisions.

 

9.             Counterparts. 
This Amendment may be executed in multiple counterparts, each of which
shall be an original but all of which together shall constitute one and the
same instrument.

 

10.           Entire Agreement.  This Amendment, together with the Credit
Agreement and the other Loan Documents, sets forth the entire agreement of the
parties with respect to the subject matter of this Amendment and supersedes all
previous understandings, written or oral, in respect of this Amendment.

 

11.           Governing Law.  This Amendment shall be governed by and
construed in accordance with the internal laws of the State of Ohio (without
regard to Ohio conflicts of law principles).

 

12.           Reaffirmation of
Guaranties.  The Guarantors hereby
each reaffirm their respective Guaranty and acknowledge and agree that none of
the Guarantors is released from its obligations under its Guaranty by reason of
this Amendment and that the obligations of the Guarantors under their
respective Guaranties extend to the Credit Agreement and the other Loan
Documents as amended by this Amendment. 
This reaffirmation of Guaranty shall not be construed, by implication or
otherwise, as imposing any requirement that the Lender notify or seek the
consent of any of the Guarantors relative to any past or future extension of
credit, or modification, extension or other action with respect thereto, in
order for any such extension of credit or modification, extension or other
action with respect thereto to be subject to the Guaranties, it being expressly
acknowledged and reaffirmed that the Guarantors have under their respective
Guaranty consented, among others things, to modifications, extensions and other
actions with respect thereto without any notice thereof or consent thereto.

 

5

 

13.           Other Documents. With the
signing of this Amendment, the Borrowers will deliver to the Lender such other
documents, instruments, and agreements deemed necessary or desirable by the
Lender to effect the amendments to the Borrowers’ credit facilities with the
Lender contemplated by this Amendment.

 

[REMAINDER
INTENTIONALLY LEFT BLANK]

 

6

 

IN
WITNESS WHEREOF, the Borrowers and the Guarantors have executed this Amendment
to be effective as of the date set forth in the opening paragraph of this
Amendment.

 

	
   

  	
  THE
  BORROWERS:

  
	
   

  	
   

  
	
   

  	
  MAGNETEK,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David P. Reiland

  	
   

  
	
   

  	
   

  	
  David
  P. Reiland, Executive Vice

  	
   

  
	
   

  	
   

  	
  President
  and Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAGNETEK
  ADS POWER, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David P. Reiland

  	
   

  
	
   

  	
   

  	
  David
  P. Reiland, President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAXTEC
  INTERNATIONAL CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David P. Reiland

  	
   

  
	
   

  	
   

  	
  David
  P. Reiland, President

  	
   

  

 

7

 

	
   

  	
  THE
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
  MXT
  HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David P. Reiland

  	
   

  
	
   

  	
   

  	
  David
  P. Reiland, President

  	
   

  
	
   

  	
   

  
	
   

  	
  MONDEL
  ULC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David P. Reiland

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
  Name:

  	
  David
  P. Reiland

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAGNETEK
  MONDEL HOLDING, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David P. Reiland

  	
   

  
	
   

  	
   

  	
  David
  P. Reiland, President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAGNETEK
  LEASING CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David P. Reiland

  	
   

  
	
   

  	
   

  	
  David
  P. Reiland, President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAGNETEK
  NATIONAL ELECTRIC COIL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David P. Reiland

  	
   

  
	
   

  	
   

  	
  David
  P. Reiland, President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted at
  Cincinnati, Ohio,

  	
   

  
	
  as of February
  12, 2004

  	
   

  
	
   

  	
   

  
	
  BANK ONE, NA

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Jeffrey W.
  Swartz

  	
   

  	
   

  
	
   

  	
  Jeffrey W.
  Swartz, Associate Director

  	
   

  	
   

  
									

 

8Exhibit 10.05

 

THIRD AMENDMENT TO

CREDIT AGREEMENT

 

THIS THIRD AMENDMENT TO CREDIT AGREEMENT
(this “Amendment”) is made and entered into as of September 9, 2004, by
BANK ONE, NA, a national banking association having its principal office in
Chicago, Illinois, as Lender (“Lender”); MAGNETEK, INC., a Delaware
corporation (“MagneTek”) and MAGNETEK ADS POWER, INC., a Delaware
corporation and Subsidiary of MagneTek, as Borrowers; and MAGNETEK LEASING
CORPORATION, a Delaware corporation, MAGNETEK MONDEL HOLDING, INC., a Delaware
corporation, MAGNETEK NATIONAL ELECTRIC COIL, INC., a Delaware corporation and
MONDEL ULC, an unlimited liability corporation organized under the laws of Nova
Scotia, Canada, as Guarantors.

 

Recitals

 

A.            The
Borrowers, the Guarantors and the Lender have entered into a Credit Agreement
dated as of August 15, 2003, as amended by the First Amendment to Credit
Agreement dated as of November 25, 2003 and by the Second Amendment to Credit
Agreement dated as of February 12, 2004 (as amended, the “Credit Agreement”).
Capitalized terms used, but not defined, in this Amendment which are defined in
the Credit Agreement will have the meanings given to them in the Credit
Agreement.

 

B.            The
Borrowers and the Guarantors desire that the Lender: (i) waive certain
Defaults, (ii) consent to the merger of Maxtec into its parent corporation,
MXT, with MXT as the surviving corporation, (iii) consent to the dissolution of
MXT and the distribution of all of its property, real and personal, tangible
and intangible, to MagneTek, and (iv) agree to certain amendments to the Credit
Agreement, all as contemplated by the terms, and subject to the conditions, of
this Amendment.

 

C.            The
Lender is willing to waive such Defaults and amend the Credit Agreement as
contemplated by the terms, and subject to the conditions, of this Amendment.

 

Statement
of Amendment 

 

In consideration of the mutual covenants
and agreements and the conditions set forth in this Amendment, and for other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Lender, the Borrowers, and the Guarantors hereby agree
as follows:

 

1.             Waiver
of Current Financial Covenant Defaults. Based on financial information
submitted by the Borrowers to the Lender, Defaults (collectively, the “Current
Covenant Defaults”) have occurred: (i) under Section 6.29.2 of the
Credit Agreement with respect to the Fixed Charge Coverage Ratio for the Test
Period ended June 27, 2004 (a required 1.25 to 1

 

 

opposite an actual
result of a negative ratio), (ii) Section 6.29.3 of the Credit Agreement
with respect to the EBITDA Covenant for the Test Period ended June 27, 2004 [a
required $1,100,000 opposite an actual result of ($1,766,000)], and (iii) Section
6.34(c) of the Credit Agreement with respect to the Operating Profit
Covenant of TPG for the Test Period ended June 27, 2004 [a required maximum
loss of ($1,700,000) opposite an actual result of ($2,119,000)]. The Loan
Parties have requested that the Lender waive the Current Covenant Defaults.  The Lender hereby waives the Current Covenant
Defaults for the specific periods indicated. 
The waiver provided in this Section 1 and in Section 3.1
of this Amendment will not apply to any other Default or Unmatured Default,
whether past, present, or future, including, without limitation, any violations
of the above described financial covenants as of dates other than that
specifically referenced in this Section 1. The waiver provided in this Section
1 and in Section 3.1 of this Amendment, either alone or together
with other waivers which the Lender may give from time to time, shall not, by
course of dealing, implication or otherwise, obligate the Lender to waive any
Default or Unmatured Default, past, present or future, other than those
specifically waived by this Amendment, or reduce, restrict or in any way affect
the discretion of the Lender in considering any future waiver requested by the
Borrowers or any of the other Loan Parties.

 

2.                                       Amendments to the Credit Agreement.

 

2.1           The definitions of “Borrower”, “Borrowing Base
Group Member” and “ICG” in Section 1.1 of the Credit
Agreement are hereby amended by deleting each reference to “Maxtec”.

 

2.2           The definition of “Change of Control” in Section
1.1 of the Credit Agreement is hereby amended in its entirety by
substituting the following in its stead:

 

“Change in Control”
means any of the following (or any combination of the following) whether
arising from any single transaction or event or any series of transactions or
events (whether as the most recent transaction in a series of transactions)
which, individually or in the aggregate, results in: (a) the acquisition by any
Person or two or more Persons acting in concert (including a “group” as defined
in Section 13(d)(3) of the Securities Exchange Act of 1934), of beneficial
ownership (within the meaning of Rule 13d-3 of the Securities and Exchange
Commission under the Securities Exchange Act of 1934) of 25% or more of the
outstanding voting Capital Stock of MagneTek; (b) the election of a director of
MagneTek as a result of which at least a majority of MagneTek’s Board of
Directors does not consist of Continuing Directors; (c) MagneTek’s ceasing to
own, free and clear of all Liens (except for Permitted Liens and Liens in favor
of the Lender) or other adverse claims, 100% of the outstanding voting Capital
Stock of ADS (except as contemplated by Section 6.34) or Mondel Holding
on a fully diluted basis; or (d) Mondel Holding’s ceasing to own, free and
clear of all Liens (except in favor of the Lender) or other adverse claims,
100% of the outstanding voting Capital Stock of Mondel Canada on a fully
diluted basis.

 

2

 

2.3           The definitions of “Consolidated
Group” and “Loan Parties” in Section 1.1 of the Credit
Agreement are hereby amended by deleting each reference to “Maxtec” and to
“MXT”.

 

2.4           The definition of “Telemotive Inventory” in Section
1.1 of the Credit Agreement is hereby amended by deleting each reference to
“Maxtec” and to “Maxtec’s”.

 

2.5           The definition of “Borrowing Base” in Section
1.1 of the Credit Agreement is hereby amended in its entirety by
substituting the following in its stead:

 

“Borrowing
Base” means, at any time, the sum of: 

 

(a)           (i) 85% of
the Eligible Accounts of each Borrowing Base Group Member, other than ADS plus  (ii) the lesser of (A)85%
of the Eligible Accounts of ADS or (B) $1,000,000;

 

plus        (b)           the least
of:

 

(i)                                     the sum of: (A)
55% of ESI Inventory which at such time is Eligible Inventory; (B) 25% of
Telemotive Inventory which at such time is Eligible Inventory; (C) 25% of
Elevator Inventory which at such time is Eligible Inventory; (D) 20% of PEG Raw
Materials which at such time are Eligible Inventory; (E) 10% of PEG Rectifiers
which at such time are Eligible Inventory; (F) 35% of PEG Finished Goods which
at such time are Eligible Inventory; and (G) the lesser of (1) $350,000
or (2) the sum of (x) 10% of Mondel Canada Inventory which at such time is
Eligible Inventory and (y) 10% of Power Inventory which at such time is
Eligible Inventory;

 

(ii)                                  80% of the Net Orderly
Liquidation Value, as of any date, of the then aggregate amount of Borrowers’
Eligible Inventory; and

 

(iii)                               $4,000,000; and

minus     (c)           Reserves.

 

All Inventory will, as of any time, be
valued at the lower of cost or market value, determined on a FIFO
basis.  No specified category of
Inventory in subparagraph (b) may be construed to include, and is deemed to
exclude, any Inventory specified to be in another category of Inventory

 

3

 

such that all specified categories of
Inventory are at all times mutually exclusive for all purposes of this
Agreement. The Lender may, in its Permitted Discretion, reduce the advance
rates set forth above or reduce one or more of the other elements used in
computing the Borrowing Base with 15 days advance written notice of such change
given to the Borrower Representative unless a Default or an Unmatured Default
then exists, in which case the Lender will give the Borrower Representative
contemporaneous telephone or written notice of such change. Notwithstanding any
term or condition of this Agreement to the contrary, effective August 25, 2004,
there shall be no Availability attributed to the value of any Equipment.

 

2.6           The
definition of “Equipment Availability” in Section 1.1 of the
Credit Agreement is hereby amended in its entirety by substituting the
following in its stead:

 

“Equipment Availability” means
zero ($0) Dollars as of August 25, 2004. 

 

2.7           The definition “Scheduled Equipment Availability Reduction”
in Section 1.1 of the Credit Agreement is hereby amended in its entirety
by substituting the following in its stead:

 

“Scheduled Equipment Availability Reduction”
means $75,000.00 per calendar quarter commencing on October 1, 2003; provided, however, that the last Scheduled
Equipment Availability Reduction will, for all purposes of this Agreement,
occur on July 1, 2004.

 

2.8           Section 5.23 of the Credit Agreement is hereby
amended in its entirety by substituting the following in its stead:

 

5.23         Affiliate
Transactions. Except as set forth on Schedule 5.23, as of the
Closing Date, there are no existing or proposed agreements, arrangements,
understandings, or transactions between any Loan Party and any of the officers,
members, managers, directors, stockholders, parents, other interest holders,
employees, or Affiliates (other than Subsidiaries) of any Loan Party or any
members of their respective immediate families, any of which matters would be
required to be disclosed in a proxy statement of MagneTek, other than matters
which are disclosed in its 2002 proxy statement.  For the Fiscal Year of the Borrowers ending
in June, 2004 and each Fiscal Year ending thereafter, the Borrowers will
allocate corporate and other overhead expenses of MagneTek to SPA.  The amount allocated to SPA (“Allocated
Overhead Amount”) will be at least $255,000 per Fiscal Quarter.  MagneTek will cause SPA to begin paying

 

4

 

the quarterly Allocated Overhead Amount to
MagneTek in cash on October 1, 2004 and will cause SPA to continue paying the
quarterly Allocated Overhead Amount in cash on the first day of each calendar
quarter thereafter occurring.  MagneTek
shall not take any actions, or enter into any agreements, that would limit, restrict
or defer its rights to receive such payments from SPA.  All of the Capital Stock of J-Tec was sold,
and the proceeds of such sale were received by MagneTek, on or before the
Closing Date.

 

2.9           The
reference to MXT in Section 6.33 of the Credit Agreement is hereby
deleted.

 

3.                                      Merger
of Maxtec and Dissolution of MXT. 

 

3.1           The
Loan Parties have requested that the Lender consent to, in sequence: (i) the
merger of Maxtec with and into MXT with MXT as the surviving corporation (the “Merger”);
and (ii) the dissolution of MXT (the “Dissolution”) in accordance with
the agreements, instruments and documents attached as Exhibit A  to this Amendment
(collectively, the “Merger and Dissolution Documents”). The Merger and
Dissolution occurred prior to obtaining the consent of the Lender which
constitutes a Default of the Credit Agreement. 
The Loan Parties have requested that the Lender waive such Default.  Upon the terms and subject to the conditions
of this Amendment, the Lender hereby: (a) waives such Default and (b) consents
to the Merger and the Dissolution, without recourse, representation or
warranty.

 

3.2           To
the extent not assumed by operation of law or by the Merger and Dissolution
Documents, MagneTek hereby acknowledges, confirms and agrees that it is liable
for, and it promises to pay, perform, and observe, all of the terms, covenants,
conditions, obligations, liabilities, and indebtedness of Maxtec and MXT to the
Lender of any type whatsoever, including, but not limited to, the Obligations
and all of terms, covenants, conditions, obligations, liabilities and
indebtedness of Maxtec and MXT under each of the Loan Documents to which Maxtec
or MXT is a party (or by which its property is bound) and all Obligations
hereinafter arising thereunder.

 

3.3           MagneTek
agrees that the Liens of the Loan Documents, including, without limitation, the
after-acquired property clauses thereof, survived the Merger and Dissolution
and are, and will be, effective as to all of the property described in the Loan
Documents, whether then existing or owned, now existing or owned or hereafter
arising or acquired and whether acquired by Maxtec or MXT, and all
substitutions, replacements, renewals, reissues, accessions and additions
thereto or thereof, now existing or hereafter arising.

 

4.                                      Reaffirmation of
Security. The Borrowers, Guarantors and the Lender hereby expressly
intend that this Amendment shall not in any manner (i) constitute the
refinancing, refunding, payment or extinguishment of the Obligations evidenced
by the existing Loan Documents; (ii) be deemed to evidence a novation of the
outstanding balance of the Obligations; or (iii) affect, replace, impair, or
extinguish the creation, attachment, perfection or priority of the

 

5

 

Liens on the Collateral granted
pursuant to the Loan Documents evidencing, governing or creating a Lien on the
Collateral.  The Borrowers and Guarantors
ratify and reaffirm any and all grants of Liens to the Lender on the Collateral
as security for the Obligations, and the Borrowers and Guarantors acknowledge
and confirm that the grants of the Liens to the Lender on the Collateral: (a)
represent continuing Liens on all of the Collateral, (b) secure all of the
Obligations, and (c) represent valid, first and best Liens on all of the
Collateral except to the extent, if any, of the Permitted Liens.

 

5.             Representations. To induce
the Lender to accept this Amendment, the Borrowers and the Guarantors hereby
represent and warrant to the Lender as follows:

 

5.1           Each Borrower and Guarantor has full power and authority
to enter into, and to perform its obligations under, this Amendment, and the
execution and delivery of, and the performance of its obligations under and
arising out of, this Amendment have been duly authorized by all necessary
corporate action.

 

5.2           This Amendment constitutes the legal, valid and binding
obligations of each Borrower and Guarantor enforceable in accordance with its
terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ rights generally.

 

5.3           Each of the Borrower’s and each of the Guarantor’s
representations and warranties contained in the Loan Documents are complete and
correct as of the date of this Amendment (other than a representation or
warranty that is stated to relate solely to an earlier date) with the same
effect as though such representations and warranties had been made again on and
as of the date of this Amendment, subject to those changes as are not prohibited
by, or do not constitute a Default under, the Loan Documents; provided, however, that Schedule 5.9
of the Credit Agreement is hereby amended and restated in its entirety by
substituting in its stead the document attached as Exhibit B to this Amendment.

 

5.4           No Default or Unmatured Default has occurred and is
continuing, other than the Current Covenant Defaults and the Default specified
under Section 3.1 of this Amendment.

 

5.5           On consummation of the Merger and Dissolution, MagneTek
directly acquired, and obtained good title to, all of the assets and
properties, real and personal, tangible and intangible, of Maxtec and MXT.

 

5.6           Maxtec, MXT and MagneTek each had adequate power and
authority, and each of them had full legal right to enter into each of the Merger
and Dissolution Documents to which it is a party, and to perform, observe and
comply with all of their respective agreements and obligations under each of
such Merger and Dissolution Documents. 
The Lender continues to have, and had on the consummation of the Merger
and Dissolution, a first priority security interest in and Lien on all of the
assets and properties, real and personal, tangible and intangible, formerly
owned by Maxtec and/or MXT and now owned by MagneTek except to the extent, if
any, of the Permitted Liens.

 

6

 

5.7           The execution and delivery by Maxtec, MXT and MagneTek of
the Merger and Dissolution Documents to which it is a party, the performance by
Maxtec, MXT and MagneTek of all of their respective agreements and obligations
under the Merger and Dissolution Documents to which it is a party, and the
consummation of the Merger and Dissolution pursuant to the Merger and
Dissolution Documents was duly authorized by all necessary corporate action on
the part of Maxtec, MXT and MagneTek and did not: (a)contravene any provision
of their respective Articles of Incorporation or Bylaws; (b) conflict with, or
result in a breach of the terms, conditions or provisions of, or constitute a
default under, or result in the creation of any Lien upon any of the properties
of Maxtec, MXT or MagneTek under, any document creating any Indebtedness other
than the Loan Documents; (c) violate or contravene any provision of any law,
rule or regulation or any order, ruling or interpretation thereunder or any
decree, order or judgment of any Governmental Authority; (d) require any
waivers, consents or approvals by any of the creditors or trustees for
creditors of Maxtec, MXT, MagneTek or any other Person other than the Lender;
or (e) require any Person to make any filing under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended, or the rules of the Federal
Trade Commission thereunder.  “Governmental
Authority” means any nation or government, any state or other political
subdivision thereof, and any entity exercising executive, legislative,
judicial, regulatory or administrative functions of, or pertaining to,
government or any agency or instrumentality thereof (including any central
bank).

 

6.             Costs and Expenses; Fee. The Borrowers will
promptly on demand pay or reimburse the Lender for the reasonable costs and
expenses incurred by the Lender in connection with this Amendment.  The Borrowers will pay to the Lender an
amendment and waiver fee in the amount of $15,000 upon Borrowers’ and
Guarantors’ execution of this Amendment.

 

7.             Release. The Borrowers and the Guarantors hereby
release the Lender from any and all liabilities, damages and claims arising
from or in any way related to the Loans or any of the Loan Documents, other
than such liabilities, damages and claims which arise after the execution of
this Amendment.  The foregoing release
does not release or discharge, or operate to waive performance by, the Lender of
its express agreements and obligations stated in the Loan Documents on and
after the date of this Amendment.

 

8.             Continuing Effect of Credit Agreement. Except as
expressly amended hereby, all of the provisions of the Credit Agreement are
ratified and confirmed and remain in full force and effect.

 

9.             One Agreement; References; Fax Signature. The
Credit Agreement, as amended by this Amendment, will be construed as one
agreement.  All references in any of the
Loan Documents to the Credit Agreement will be deemed to be references to the
Credit Agreement as amended by this Amendment. 
This Amendment may be signed by facsimile signatures, and if so signed,
(i) may be relied on by each party as if the document were a manually signed
original and (ii) will be binding on each party for all purposes.

 

10.           Captions. The headings to the Sections of this
Amendment have been inserted for convenience of reference only and shall in no
way modify or restrict any provisions hereof or be used to construe any such
provisions.

 

7

 

11.           Counterparts. This Amendment may be executed in
multiple counterparts, each of which shall be an original but all of which
together shall constitute one and the same instrument.

 

12.           Entire Agreement. This Amendment, together with the
Credit Agreement and the other Loan Documents, sets forth the entire agreement
of the parties with respect to the subject matter of this Amendment and
supersedes all previous understandings, written or oral, in respect of this
Amendment.

 

13.           Governing Law. This Amendment shall be governed by
and construed in accordance with the internal laws of the State of Ohio
(without regard to Ohio conflicts of law principles).

 

14.           Reaffirmation of Guaranties. The Guarantors hereby
each reaffirm their respective Guaranty and acknowledge and agree that no
Guarantor is released from its obligations under its Guaranty by reason of this
Amendment and that the obligations of the Guarantors under their respective
Guaranties extend to the Credit Agreement and the other Loan Documents as
amended by this Amendment.  This
reaffirmation of Guaranty shall not be construed, by implication or otherwise,
as imposing any requirement that the Lender notify or seek the consent of any
of the Guarantors relative to any past or future extension of credit, or
modification, extension or other action with respect thereto, in order for any
such extension of credit or modification, extension or other action with
respect thereto to be subject to the Guaranties, it being expressly
acknowledged and reaffirmed that the Guarantors have under each respective
Guaranty consented, among others things, to modifications, extensions and other
actions with respect thereto without any notice thereof or consent thereto.

 

15.           Other Documents. With the signing of this
Amendment, the Borrowers and Guarantors will deliver to the Lender such other
documents, instruments, and agreements deemed necessary or desirable by the
Lender to effect the amendments to the Borrowers’ credit facilities with the
Lender contemplated by this Amendment.

 

[REMAINDER INTENTIONALLY LEFT BLANK]

 

8

 

IN WITNESS WHEREOF, the Borrowers and the
Guarantors have executed this Amendment to be effective as of the date set
forth in the opening paragraph of this Amendment.

 

	
   

  	
  THE BORROWERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAGNETEK, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David P. Reiland

  	
   

  
	
   

  	
   

  	
  David P. Reiland, Executive Vice

  	
   

  
	
   

  	
   

  	
  President and Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAGNETEK ADS POWER, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David P. Reiland

  	
   

  
	
   

  	
   

  	
  David P. Reiland, President

  	
   

  
	
   

  	
   

  
	
   

  	
  THE GUARANTORS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MONDEL ULC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David P. Reiland

  	
   

  
	
   

  	
   

  	
  David P. Reiland, President

  	
   

  
	
   

  	
   

  
	
   

  	
  MAGNETEK MONDEL HOLDING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David P. Reiland

  	
   

  
	
   

  	
   

  	
  David P. Reiland, President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAGNETEK LEASING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David P. Reiland

  	
   

  
	
   

  	
   

  	
  David P. Reiland, President 

  	
   

  

 

9

 

	
   

  	
  MAGNETEK NATIONAL ELECTRIC COIL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David P. Reiland

  	
   

  
	
   

  	
   

  	
  David P. Reiland, President

  	
   

  
	
   

  	
   

  
	
  Accepted at Cincinnati, Ohio,

  as of September 9, 2004

  	
   

  
	
   

  	
   

  
	
  BANK ONE, NA

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Jeffrey W. Swartz

  	
   

  	
   

  
	
   

  	
  Jeffrey W. Swartz, Vice President/Associate Director

  	
   

  
						

 

10

 

EXHIBIT A 

 

(Merger and Dissolution Documents)

 

 

	
  FORM BCA
  12.20 (rev, Dec. 2003)

  	
   

  
	
  ARTICLES OF
  DISSOLUTION

  	
   

  
	
  Business
  Corporation Act

  	
   

  
	
   

  	
   

  
	
  Jesse White,
  Secretary of State

  	
   

  
	
  Department
  of Business Services

  	
   

  
	
  Springfield,
  IL 62756

  	
   

  
	
  Telephone
  (217) 782-6951

  	
   

  
	
  http://www.cyberdriveilinois.com

  	
  FILED

  	
   

  
	
   

  	
   

  	
   

  
	
  Remit
  payment in the form of a

  	
  JUL 01 2004

  	
   

  
	
  check or
  money order payable

  	
   

  	
   

  
	
  to the Secretary
  of State

  	
  JESSE WHITE

  	
   

  
	
   

  	
  SECRETARY OF STATE

  	
   

  

 

                                      File#  5837-487-3 
Filing Fee: $5.00 Approved:    /s/ [ILLEGIBLE]                                     
Submit in duplicate                               
Type or print clearly in black ink                          
Do not write above this line                                       

 

1.                                       CORPORATE
NAME:  MXT HOLDINGS, INC.

 

2.                                       Post
office address to which may be mailed a copy of any process against the
corporation that may be served on the Secretary of State:

10900 Wilshire
Blvd., Suite 850, Los Angeles, California 90024 

 

 

	
  3.

  	
  Dissolution
  of the corporation was duly authorized on June 10, 2004 in the manner indicated below:

  
	
   

  	
  (Month
  & Day)  (Year)

  

(Mark an “X” in one box only)

 

o                                    By
a majority of the incorporations, provided no directors were named in the
Articles of Incorporation and no directors have been elected; or by a majority
of the board of directors, in accordance with Section 12.05, the corporation
having issued no shares as of the authorization of the dissolution

(Notes 1 & 2)

 

ý                                    By
a written consent signed by all shareholders entitled to vote on dissolution,
in accordance with section 12.10, board of director action not being required.

(Note 3)

 

o                                    By
the shareholders, in accordance with Section 12.15, a resolution having been
duly adopted and submitted to the shareholders. At a meeting of shareholders,
not less than the minimum number of votes required by statute and by the
Articles of Incorporation were voted in favor of the dissolution.

(Note 3)

 

o                                    By
the shareholders, in accordance with Section 12.15 and 7.10, a resolution
having been duly adopted and submitted to the shareholders. A consent in
writing has been signed by shareholders having not less than the minimum number
of votes required by statute and by the Articles of Incorporation, Shareholders
who have not consented in writing have been given notice in accordance with
Section 7.10

(Note 3)

 

(COMPLETE ONLY WHEN APPLICABLE)

 

	
  4.

  	
  (a)

  	
  List all issuances of shares not previously reported to the Secretary
  of State (Including shares issued for cash or other property, share
  dividends, share splits, share exchanges pursuant to Section 11.10, and
  shares to affect an exchange or reclassification of issued shares) and give
  the value of the entire consideration received therefore, less expenses; list
  any amounts added or transferred to paid-in capital, without the issuance of
  shares.

  
	
   

  	
   

  	
  (Note 4)

  

 

	
  Date of Issuance

  Or Contribution

  	
   

  	
  Class

  	
   

  	
  Per Value

  	
   

  	
  Number of

  Shares Issued

  	
   

  	
   

  	
   

  	
  Entire Consideration

  Received

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  TOTAL

  	
   

  	
  $

  	
   

  	
   

  

 

(COMPLETE BOTH SIDES OF DOCUMENTS)

 

 

(b)                               List
all cancellations of shares not previously reported to the Secretary of State
and give the cost.

 

	
  Date of Cancellation

  	
   

  	
  Class

  	
   

  	
  Number of Shares Cancelled

  	
   

  	
   

  	
   

  	
  Cost

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  TOTAL

  	
   

  	
  $

  	
   

  	
   

  

 

5.                                       Issued
shares at date of execution:

 

	
  Class

  	
   

  	
  Series

  	
   

  	
  Par Value

  	
   

  	
  Number of Shares

  	
   

  
	
  Common Class A

  	
   

  	
   

  	
   

  	
  $

  	
  .001

  	
   

  	
  295,041.5

  	
   

  
	
  Common Class B

  	
   

  	
   

  	
   

  	
  $

  	
  .001

  	
   

  	
  291,667

  	
   

  

 

6.                                       Paid-in
capital at date of execution:

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  Paid-in Capital 

  	
   

  	
  $

  	
  1,760,125

  	
   

  

 

(“Paid-in Capital” replaces the
terms “Stated Capital” and “Paid-in Surplus” and is equal to the total of these
accounts.)

 

7.                                       The
Undersigned corporation has caused these articles to be signed by a duly
authorized officer who affirms, under penalties of perjury, that the facts
stated herein are true. (All Signatures must be in BLACK INK.)

 

	
  Dated 

  	
  June 10,

  	
  ,

  	
  2004

  	
   

  	
  MXT HOLDINGS, INC.

  
	
   

  	
  (Month & Day)

  	
   

  	
  (Year)

  	
   

  	
  (Exact Name of Corporation)

  

 

	
  /s/ Tina D. McKnight

  	
   

  
	
  (Any authorized officer’s signature)

  	
   

  
	
  Tina D. McKnight, Secretary

  	
   

  
	
  (Type or print Name and Title)

  	
   

  

 

* If
dissolution is authorized by the Incorporators or by the board of directors, a
majority of them must SIGN BELOW, and type or print name and title.

 

 

The
undersigned affirms, under the penalties of 
perjury, that the facts stated herein are true.

 

	
  Dated 

  	
  June 10,

  	
  ,

  	
  2004

  	
   

  	
   

  
	
   

  	
  (Month & Day)

  	
   

  	
  (Year)

  	
   

  	
   

  

 

NOTES

 

1.               Incorporators
are authorized to dissolve a corporation ONLY before any shares have been
issued AND before any directors have been named or elected. The signatures of a
majority of the incorporators must appear on these Articles of Dissolution.

2.               Directors
are authorized to dissolve a corporation ONLY before any shares have been
issued. In the event there are no officers, the signature of a majority of the
directors or such directors as may be designated by the board must appear on
these Articles of Dissolution.

3.               All
dissolutions not authorized by the incorporators or the directors must be
authorized by the shareholders.

Shareholders may authorize dissolution by their unanimous written
constent. This does not require any action of the board of directors and does
not require a shareholders’ meeting.

Shareholder
authorization may also be by vote at a shareholders’ meeting or by less than
unanimous consent, in writing, without a meeting.

To be
effective, the dissolution must receive the affirmative vote or consent of the
holders of at least 2/3 of the outstanding shares entitled to vote on
dissolution and, if class voting applies, then also at least 2/3 of the votes
within each class.

If the
articles of Incorporation so provide, the 2/3 vote requirement may be
superseded by any smaller or larger vote requirement, not less than a majority
of the outstanding shares entitled to vote and not less than a majority within
each class when class voting applies.

When
shareholder authorization is by less than unanimous written consent, all
shareholders must be given notice of the proposed dissolution action at least
five days before the consent is signed. Shareholders who have not signed the
consent must be given prompt notice that dissolution was duly authorized.

4.               In the event of an
increase in paid-in capital, all applicable franchise taxes, penalties and
interest must be paid before this document can be accepted for filing.

 

 

Delaware

 

The First State

 

I, HARRIET SMITH WINDSOR, SECRETARY OF STATE
OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT
COPY OF THE CERTIFICATE OF OWNERSHIP, WHICH MERGES:

 

“MAXTEC INTERNATIONAL CORP.”, A DELAWARE
CORPORATION, WITH AND INTO “MXT HOLDINGS, INC.” UNDER THE NAME OF “MXT
HOLDINGS, INC.”, A CORPORATION ORGANIZED AND EXISTING UNDER THE LAWS OF THE
STATE OF ILLINOIS, AS RECEIVED AND FILED IN THIS OFFICE OF THE NINTH DAY OF
JUNE, A.D. 2004, AT 7:50 O’CLOCK P.M.

 

 

	
   

  	
   

  	
  /s/ Harriet
  Smith Windsor

  	
   

  
	
   

  	
  [SEAL]

  	
  Harriet
  Smith Windsor, Secretary of State

  
	
   

  	
   

  	
  AUTHENTICATION:
  

  	
   

  	
  3220800

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DATE:

  	
   

  	
  07-08-04

  
						

 

 

	
  State of Delaware

  	
   

  
	
  Secretary of State

  	
   

  
	
  Division of Corporations

  	
   

  
	
  Delivered 07:50 PM 06/09/2004

  	
   

  
	
  FILED 07:50 PM 06/09/2004

  	
   

  
	
  SRV 040429121 - 2140276 FILE

  	
   

  

 

CERTIFICATE OF OWNERSHIP AND MERGER

OF

MAXTEC INTERNATIONAL CORP.

(A Delaware Corporation)

INTO

MXT HOLDINGS, INC.

(As Illinois Corporation)

 

It is hereby certified that:

 

1.                                       MXT
Holdings, Inc. (the “Corporation”) is a business corporation of the State of
Illinois.

 

2.                                       The
Corporation is the owner of all of the outstanding shares of each class of
stock of Maxtec International Corp., which is a business corporation of the
State of Delaware.

 

3.                                       The
laws of the jurisdiction of organization of MXT Holdings, Inc. permit the mergers
of a business corporation of that jurisdiction with a business corporation of
another jurisdiction.

 

4.                                       The
Corporation hereby merges Maxtec International Corp. into the Corporation.

 

5.                                       The
following is a copy of the resolutions adopted on June 8, 2004 by the sole
Director of the Corporation to merge the said Maxtec International Corp. into
the Corporation:

 

WHEREAS, the
sole Director has deemed it to be in the best interests of this Corporation
that the Corporation merge with its wholly owned subsidiary, Maxtec
International Corp., a Delaware corporation (“Maxtec International”);

 

RESOLVED, that
the Corporation shall merge with Maxtec International and that this Corporation
shall be the surviving corporation; and

 

RESOLVED
FURTHER, that the Plan of Merger attached hereto as Exhibit A (the “Plan of
Merger”) is hereby approved, and the President and Secretary, or any other
officers of the Corporation, are hereby authorized and directed to execute said
Plan of Merger on behalf of the Corporation;

 

RESOLVED
FURTHER, that the Plan of Merger shall be filed with the Secretary of State of
the State of Illinois and shall be effective upon the completion of said
filing; and

 

 

RESOLVED FURTHER, that pursuant to the Plan of Merger, upon the
effective date of the merger, that this Corporation will succeed to all assets,
rights, powers and property, held by Maxtec International immediately prior to
the effective date of the merger, and shall be subject to all actions
previously taken by the Board of Directors of Maxtec International, and shall
be subject to all debts, liabilities and obligations of Maxtec International as
constituted immediately prior to the effective date of the merger; and

 

RESOLVED
FURTHER, that the outstanding shares of Maxtec International shall be cancelled
and no stock of Maxtec International or other consideration shall be delivered
in exchange thereof, and

 

RESOLVED
FURTHER, that this Corporation does hereby agree that it may be served with
process in the State of Delaware in any proceeding for enforcement of the
obligations of Maxtec International, as well as for enforcement of any
obligations of this Corporation arising from the merger herein provider for;
does hereby irrevocably appoint the Secretary of State of the State of Delaware
as its agent to accept service of process in any such proceeding; and does
hereby specify the following address to which a copy of such process shall be
mailed by the Secretary of State of the State of Delaware:

 

Corporate Secretary

Magnetek, Inc.

10900 Wilshire Blvd., suite 850

Los Angeles, CA. 90024

 

RESOLVED
FURTHER, that the officers of this Corporation be, and they hereby are,
authorized to execute any further documents, certificates or instruments
necessary or appropriate to effectuate the foregoing resolutions.

 

Executed on: June 8, 2004

 

 

	
   

  	
  By:

  	
  /s/ Tina D.
  McKnight

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Tina D. McKnight

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Secretary

  	
   

  
						

 

 

[SEAL]

 

OFFICE OF THE SECRETARY OF STATE

JESSE WHITE  • Secretary of State

 

	
  JUNE 16,
  2004

  	
  5837-487-3

  	
   

  

 

 

CSC NETWORKS

801 ADLAI STEVENSON DR

SPRINGFIELD, IL 62703

 

RE MXT HOLDINGS, INC.

 

 

DEAR SIR OR MADAM:

 

ENCLOSED YOU WILL FIND THE
ARTICLES OF MERGER REGARDING THE ABOVE NAMED CORPORATION.

 

FEES IN THIS CONNECTION HAVE
BEEN RECEIVED AND CREDITED.

 

THIS DOCUMENT MUST BE RECORDED
IN THE OFFICES OF THE RECORDERS OF THE COUNTIES IN WHICH THE REGISTERED OFFICES
OF THE MERGING CORPORATIONS ARE LOCATED. IN ORDER TO COMPLY WITH ARTICLE 6 OF
THE COUNTIES CODE, AS AMENDED JANUARY 1, 1995, THE PAGES OF THIS DOCUMENT MUST
BE SEPARATED BEFORE IT IS PRESENTED FOR RECORDING.

 

THE SURVIVING CORPORATION SHALL
EXECUTE A REPORT FOLLOWING MERGER (FORMS ARE ENCLOSED) AND FILE SAME IN THIS
OFFICE WITHIN SIXTY DAYS AFTER MERGER.

 

	
  SINCERELY
  YOURS,

  
	
   

  
	
  /s/ Jesse
  White

  	
   

  
	
  JESSE WHITE

  
	
  SECRETARY OF
  STATE

  

 

DEPARTMENT OF BUSINESS SERVICES

CORPORATION DIVISION

TELEPHONE (217) 782-6961

 

JW.CD

 

Springfield, Illinois 62756

 

 

	
  FORM BCA
  11.25 (rev. Dec. 2003)

  	
   

  
	
  ARTICLES
  OF MERGER,

  	
   

  
	
  CONSOLIDATION
  OR EXCHANGE

  	
   

  
	
  Business
  Corporation Act

  	
   

  
	
   

  	
   

  
	
  Jesse
  White, Secretary of State,

  	
   

  
	
  Department
  of Business Services

  	
   

  
	
  Springfield,
  IL 82758

  	
   

  
	
  Telephone
  (217) 782  6961

  	
   

  
	
  www.Cyberdriveilinois.com

  	
   

  
	
   

  	
   

  
	
  Remit
  payment in the form of a

  	
   

  
	
  check or
  money order payable

  	
   

  
	
  to the
  Secretary of State

  	
  FILED

  	
   

  
	
   

  	
   

  	
   

  
	
  The filing
  fee is $100, but if merger or

  	
  JUL 16 2004

  	
   

  
	
  consolidation
  involves more than 2 

  	
   

  	
   

  
	
  corporations,
  $50 for each additional 

  	
  JESSE WHITE

  	
   

  
	
  corporation

  	
  SECRETARY OF STATE

  	
   

  

 

                                                              File#
5837-487-3 Filing Fee: $ 100.00 Approved:   /s/ [ILLEGIBLE]                              Submit
in duplicate                         Type
or Print clearly in black ink                          Do
not write above this line

 

NOTE: Strike inapplicable words
in items 1, 3 and 4.

 

1.               Names
of the corporations proposing to merge consolidate exchange shares, and the
state or country of their incorporation:

 

	
  Name of Corporation

  	
   

  	
  State or Country 

  of Incorporation

  	
   

  	
  Corporation

  File Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MXT
  Holdings, Inc.

  	
   

  	
  Illinois

  	
   

  	
  5837-4873

  
	
  Maxtec International Corp.

  	
   

  	
  Delaware

  	
   

  	
  5483-0912

  

 

2.               The laws of the
state or country under which each corporation is incorporated permits such
merger, consolidation or exchange.

 

3.               (a)          Name
of the surviving corporation:  MXT Holdings, Inc.

 

(b)         It
shall be governed by the laws of:   Illinois

 

If not sufficient space to cover this point, add one or more sheets of
this size.

 

4.               Plan of merger is
as follows:

 

See attached Agreement of Merger

 

 

5.               Plan of merger
consolidation exchange was approved as to each corporation not organized in
Illinois, in compliance with the laws of the state under which it is organized,
and (b) as to each Illinois corporation, as follows:

 

(The following items are not applicable to mergers under §11.30 — 90%
owned subsidiary provisions. See Article %)

 

(Only “X” one box for each Illinois corporation)

 

	
  Name of Corporation

  	
   

  	
  By the shareholders, a reso-

  lution of the board of direc

  tors having been duly

  adopted and submitted to a

  vote at a meeting of share-

  holders. Not less than the

  minimum number of votes

  required by statute and by

  the articles of Incorporation

  voted in favour of the action

  taken.

  (§ 11.20)

  	
   

  	
  By written consent of the

  shareholders having notless

  than the minimum number of

  votes required by statute and

  by the articles of Incorpora-

  tion . Shareholders who have

  not consented in writing have

  been given notice in accor-

  dance with § 7.10 (§ 11.20)

  	
   

  	
  By written consent

  of ALL the share-

  holders entitled to

  vote on the action.

  In accordance with

  § 7.10 & § 11.20

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  o

  	
   

  	
  o

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
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  o

  	
   

  	
  o

  	
   

  	
  o

  	
   

  

 

6.               (Not applicable if surviving, new or acquiring corporation is an
Illinois corporation)

 

It is agreed
that, upon and after the issuance of a certificate of merger, consolidation or
exchange by the Secretary of State of the State of Illinois.

 

a.               The
surviving, new or acquiring corporation may be served with process in the State
of Illinois in any proceeding for the enforcement of any obligation of any
corporation organized under the laws of the State of Illinois which is a party
to the merger, consolidation or exchange and in any proceeding for the
enforcement of the rights of a dissenting shareholder of any such corporation
organized under the laws of the State of Illinois against the surviving, new or
acquiring corporation.

 

b.              The
Secretary of State of the State of Illinois shall be and hereby is Irrevocably
appointed as the agent of the surviving, new or acquiring corporation to accept
service of process in any such proceedings, and

 

c.               The
surviving, new, or acquiring corporation will promptly pay to the dissenting
shareholders of any corporation organized under the laws of the State of
Illinois which is a party to the merger, consolidation or exchange the amount,
if any, to which they shall be entitled under the provisions of “The Business
Corporation Act of 1983” of the State of Illinois with respect to the rights of
dissenting shareholders.

 

 

7.                                     (Complete this item if reporting a merger under § 11.30—90% owned
subsidiary provisions.)

 

a.               The
number of outstanding shares of each class of each merging subsidiary
corporation and the number of such shares of each class owned immediately prior
to the adoption of the plan of merger by the parent corporation, are:

 

	
  Name of Corporation

  	
   

  	
  Total Number of Share

  Outstanding

  of Each Class

  	
   

  	
  Number of Shares of Each Class 

  Owned Immediately Prior to

  Merger by the Parent Corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maxtec
  International Corp.

  	
   

  	
  4,555 Class A Common

  	
   

  	
  4,555 Class A Common(100%)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

b.              (Not
applicable to 100% owned subsidiaries)

	
   

  	
  The date of
  mailings a copy of the plan of merger and notice of the right to dissent to
  the shareholders of each merging subsidiary corporation was
                                   ,
                .

  
	
   

  	
   

  	
  (Month & Day)

  	
  Year

  	
   

  

 

Was written
consent for the merger or written waiver of the 30-day period by the holders of
all the outstanding shares of all subsidiary corporation received?     o
Yes    o No

 

(If the
answer is “No,” the duplicate copies of the Articles of Merger may not be
delivered to the Secretary of State until after 30 days following the mailing
of a copy of the plan of merger and of the notice of the right to dissent to
the shareholders of each merging subsidiary corporation.)

 

8.                                     The
undersigned corporation have caused these articles to be signed by their duly authorized
officers, each of whom affirms, under penalties of perjury, that the facts
stated herein are true. (All signature must be in BLACK INK.)

 

	
  Dated:

  	
   

  	
  June 8

  	
   

  	
  ,

  	
  2004

  	
   

  	
   

  	
  MXT Holdings, Inc.

  
	
   

  	
   

  	
  (Month & Day)

  	
   

  	
   

  	
  (Year)

  	
   

  	
   

  	
  (Exact Name of Corporation)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Tina D. McKnight

  	
   

  	
   

  	
   

  	
   

  
	
  (Any authorized officer’s signature)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tina D. McKnight, Secretary

  	
   

  	
   

  	
   

  	
   

  
	
  (Type or Print Name and Title)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated

  	
   

  	
  June 8

  	
   

  	
  ,

  	
  2004

  	
   

  	
   

  	
  Maxtec International Corp.

  
	
   

  	
   

  	
  (Month & Day)

  	
   

  	
   

  	
  (Year)

  	
   

  	
   

  	
  (Exact Name of Corporation)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Tina D. McKnight

  	
   

  	
   

  	
   

  	
   

  
	
  (Any authorized officer’s signature)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tina D. McKnight, Secretary

  	
   

  	
   

  	
   

  	
   

  
	
  (Type of Print Name and Title)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date 

  	
   

  	
   

  	
   

  	
  ,

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Month & Day)

  	
   

  	
   

  	
  (Year)

  	
   

  	
   

  	
  (Exact Name of Corporation)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Any authorized officer’s signature)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Type of Print Name and Title)

  	
   

  	
   

  	
   

  	
   

  
													

 

 

AGREEMENT OF MERGER

 

This Agreement
of Merger, dated June 8, 2004 (“Merger Agreement”) between Maxtec International
Corp., a Delaware Corporation (“Maxtec International”) and MXT Holdings, Inc.,
an Illinois corporation (“MXT Holdings”) (“MXT Holdings”  or the “Surviving Corporation”) (Maxtec International
and MXT Holdings hereinafter collectively referred to as the “Constituent
Corporations”),

 

WITNESSETH:

 

WHEREAS, MXT
Holdings owns all of the outstanding shares of capital stock of Maxtec
International; and

 

WHEREAS, the
Board of Directors of the Constituent Corporation deem it advisable and in the
best interest of the Constituent Corporation that Maxtec International be
merged into MXT Holdings.

 

NOW,
THEREFORE, the Constituent Corporations hereby agree as follows:

 

ARTICLE I

 

The
Constituent Corporations

 

1.01                           (a)                                  Maxtec
International was incorporated under the laws of the State of Delaware on
October 9, 1987.

 

(b)                                 Maxtec
International is authorized to issue an aggregate of 120,000 shares of Class A
Common Stock and 12,999 shares of Class B Common Stock.

 

(c)                                  On
the date hereof, 4,555 shares of Maxtec International’s Class A Common Stock
are issued and outstanding.

 

1.02                           (a)                                  MXT
Holdings was incorporated under the laws of the State of Illinois on June 7,
1995.

 

(c)                                  MXT
Holdings is authorized to issue an aggregate of 1,000,000 shares of Class A
common stock and 1,000,000 shares of Class B common stock.

 

(d)                               On
the date hereof, 295,041.5 Class A Common Stock and 291,667 Class B Common
Stock of MXT Holdings are issued and outstanding.

 

 

ARTICLE II

 

The Merger

 

2.01 (a) The
Merger shall become effective at such time (“Effective Time of Merger”) as this
Agreement, Articles of Merger, and Certificate of Ownership and Merger of each
Constituent Corporation are simultaneously filed with the Secretary of State of
the State of Illinois and Delaware.

 

(b)  At
the Effective Time of the Merger, Maxtec International shall be merged into MXT
Holdings and the separate corporate existence of Maxtec International shall
thereupon cease. MXT Holdings shall be surviving corporation in the Merger and
the separate corporate existence of MXT Holdings, with all its purposes,
objects, rights, privileges, powers, immunities and franchises, shall continue
unaffected and unimpaired by the Merger.

 

2.02 (a) The
Surviving Corporation shall succeed to all of the rights, privileges, powers,
immunities and franchises of Maxtec International, all of the properties and
assets of Maxtec International, and interests due or belonging to Maxtec
International and shall be subject to, and responsible for, all of the debts, liabilities
and obligations of Maxtec International.

 

(b)   If,
at any time after the Effective Time of the Merger, the Surviving Corporation
shall consider or be advised that any deeds, bills of sale, assignments,
assurance or any other actions or things are necessary or desirable to vest,
perfect or confirm of record or otherwise in the Surviving Corporation its
right, title or interest in, to or under any of the rights, properties or
assets of Maxtec International acquired or to be acquired by the Surviving
Corporation as a result of , or in connection with, the Merger or to otherwise
carry out this Merger Agreement,  the
officers and directors of the Surviving Corporation shall and will be
authorized to execute and deliver, in the name and on behalf of the Constituent
Corporations or otherwise, all such deeds, bills of sale, assignments and
assurances and to take and do, in the name and on behalf of the Constituent
Corporations or otherwise, all such other actions and things as may be
necessary or desirable to vest, perfect or confirm any and all right, title and
interest in, to and under such right, properties or assets in the Surviving
Corporation or to otherwise carry out this Merger Agreement

 

ARTICLE III

 

Articles of Incorporation, Bylaws and

Directors and Officers of the Surviving Corporation

 

3.01 The
Articles of Incorporation of MXT Holdings in effect immediately prior to the
Effective Time of the Merger, shall be the Articles of Incorporation of the
Surviving Corporation unless and until amended as provided by law and such
Articles of Incorporation.

 

 

3.02 The
Bylaws of MXT Holdings in effect immediately prior to the Effective Time of the
Merger, shall be the Bylaws of the Surviving Corporation unless and until
amended or repealed as provided by law, the Articles of Incorporation and such
Bylaws.

 

3.03 The
directors and officers of MXT Holdings immediately prior to the Effective Time
of the Merger, shall be the directors and officers, respectively, of the
Surviving Corporation, in each case until their successors shall have been
elected, qualified or until otherwise provided by law.

 

ARTICLE IV

 

Effect of The Merger on the Capital Stock of the

Constituent Corporations: Exchanges of Certificates

 

4.01 As of the
Effective Time of the Merger, by virtue of the Merger and without any action on
the part of the holder of any shares of MXT Holdings, the outstanding shares of
Maxtec International, all of which are owned by MXT Holdings, shall be
cancelled and no stock or other consideration shall be delivered in exchange
therefore.

 

ARTICLE V

 

Termination and Amendment

 

5.01 This
Merger Agreement may be terminated at any time prior to the Effective Time of
the Merger by mutual agreement of the Boards of Directors of the Constituent
Corporations.

 

5.02 In the
event of the termination of this Merger Agreement as provided above, this
Merger Agreement shall forthwith become void and there shall be no liability on
the part of either Maxtec International or MXT Holdings or their respective
officers and directors.

 

5.03 This
Merger Agreement may be amended by the parties hereto any time before or after
approval hereof by the directors of either Maxtec International or MXT
Holdings. This Merger Agreement may not be amended except by an instrument in
writing signed on behalf of each of the parties hereto.

 

IN WITNESS
WHEREOF, the parties have duly executed this Merger Agreement as of the date
first above written.

 

	
   

  	
  MAXTEC
  INTERNATIONAL CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David P.
  Reiland

  	
   

  
	
   

  	
   

  	
  David P. Reiland, President

  

 

 

	
   

  	
  By:

  	
  /s/ Tina D.
  McKnight

  	
   

  
	
   

  	
   

  	
  Tina D. McKnight, Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXT
  HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David P.
  Reiland

  	
   

  
	
   

  	
   

  	
  David P. Reiland, President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tina D.
  McKnight

  	
   

  
	
   

  	
   

  	
  Tina D. McKnight, Secretary

  

 

 

ACTION BY WRITTEN CONSENT

OF THE SOLE DIRECTOR OF

MXT HOLDINGS, INC.

AN ILLINOIS CORPORATION

 

The
undersigned, being the sole Director of MXT Holdings, Inc., an Illinois
Corporation (the “Corporation”) hereby consents to the adoption of the
following resolutions:

 

WHEREAS,
Magnetek, Inc. (hereinafter “Shareholder”), owning all the issued and
outstanding shares of the common stock of this Corporation, has executed and
delivered to the Secretary of this Corporation a Written Consent to Action by
the Sole Shareholder of MXT Holdings, Inc. to wind up its affairs and dissolve
this Corporation; and

 

WHEREAS, it is
deemed to be in the best interests of this Corporation and its Shareholder to
voluntarily dissolve the Corporation and to adopt a Plan of Complete
Liquidation and Distribution (hereinafter “Plan”) of its assets;

 

RESOLVED, that
in accordance with Section 12.10 of the Illinois Buisness Corporation Act and
Section 332 of the Internal Revenue Code of 1986, as amended, this Corporation
does hereby elect to wind up its affairs and voluntarily dissolve as of June
10, 2004; and

 

RESOLVED
FURTHER, that the following Plan be adopted:

 

1.               All
of the taxes, obligations and liabilities on the part of this Corporation
having been paid, are being paid, or are adequately provided for; therefore, no
written notice of the proceedings for the voluntary dissolution and winding up
of this Corporation need be given to creditors.

 

2.               All
remaining assets of the Corporation shall be distributed to the Shareholder in
complete redemption and cancellation of all the outstanding stock of this
Corporation. Any receivables due to the Corporation shall be collected as soon
as possible and the cash derived therefrom shall be distributed to the
Shareholder.

 

3.               Immediately
following the distribution of all assets of this Corporation and the payment of
all the debts and liabilities of the Corporation, or adequate provisions having
been made therefore, Articles Of Dissolution shall be filed with the Illinois
Secretary of State’s Office as required by Section 12.20 of the Illinois
Business Corporation Act.

 

 

RESOLVED
FURTHER, that the officers of this Corporation be, and they hereby are,
authorized to execute any further documents, certificates or instruments
necessary or appropriate to effectuate the foregoing resolutions.

 

 

	
   

  	
  /s/ David P.
  Reiland

  
	
   

  	
  David P.
  Reiland

  

 

 

WRITTEN CONSENT TO ACTION

BY THE SOLE SHAREHOLDER

OF

MXT HOLDINGS, INC.

AN ILLINOIS CORPORATION

 

The
undersigned, being the sole shareholder of MXT Holdings, Inc., an Illinois
Corporation (the “Corporation”) hereby consents to the adoption of the
following resolutions:

 

WHEREAS, it is
deemed advisable and in the best interests of the Corporation that this
Corporation wind up its affairs and voluntarily dissolve;

 

RESOLVED, that
the undersigned, holding of record 255,208 Class A Common shares of capital
stock and 503,698 Class B Common shares of capital stock of said Corporation,
constituting all of the outstanding shares and voting power of said
Corporation, does hereby elect and consent to the winding up of the affairs of
said Corporation and to its voluntary dissolution; and

 

RESOLVED
FURTHER, that the proposed Plan of Complete Liquidation and Distribution for
winding up the affairs and dissolving the Corporation is hereby approved in all
respects; and

 

RESOLVED
FURTHER, that the undersigned hereby further directs the Directors and officers
of said Corporation to take such further action as may be necessary or proper
to wind up the affairs and dissolve this Corporation.

 

	
  Dated as of
  June 10, 2004.

  
	
   

  
	
   

  
	
   

  	
  MAGNETEK,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ David P.
  Reiland

  
	
   

  	
  David P.
  Reiland, Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Tina D.
  McKnight

  
	
   

  	
  Tina D.
  McKnight, Secretary

  

 

 

BILL OF SALE AND ASSIGNMENT

 

This BILL OF SALE AND ASSIGNMENT (this “Bill
of Sale and Assignment’) is made as of July 1, 2004 (the “Effective Date”)
by and between MXT Holdings, Inc., an Illinois corporation (“Subsidiary”)
and Magnetek, Inc., a Delaware corporation (“Magnetek”).

 

WHEREAS, Magnetek
has made a business decision to discontinue the operation of Subsidiary’s
business as a separate subsidiary of Magnetek and will continue such business
as a division of Magnetek, and Magnetek, consistent therewith, is filing for
dissolution of the Subsidiary with the State of Illinois; and

 

WHEREAS, upon
dissolution of the Subsidiary, all of its inventory, equipment, accounts
receivable, and any and all other property (collectively the “Assets”)
will be transferred and assigned to Magnetek, subject to the terms and
conditions set forth herein.

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Subsidiary and Magnetek hereby agree as follows:

 

1.                                     Conveyance
and Transfer of Property. As of the Effective Date of this Bill of Sale and
Assignment, Subsidiary hereby sells, conveys, transfers, assigns and delivers
unto Magnetek, AS IS, WHERE IS, AND WITH ALL FAULTS, all legal and beneficial
right, title and interest of the Subsidiary in and to the Assets, subject to:
(i) all security interests and other liens of Bank One, NA under the Credit Agreement
dated as of August 15, 2003 among Magnetek, the Subsidiary, and certain other
subsidiaries of Magnetek (as heretofore or hereafter amended, collectively, the
“Credit Agreement”), the Collateral Documents (as defined in the Credit
Agreement) and the other Loan Documents (as defined in the Credit Agreement)
and (ii) all other valid and enforceable liens and encumbrances, if any.

 

2.                                       Consideration.
In consideration for the sale, assignment and transfer to Magnetek of all of
Subsidiary’s Assets, Magnetek hereby assumes as of the Effective Date of this
Bill of Sale and Assignment: (i) all of the Obligations (as defined in the
Credit Agreement) of the Subsidiary and (ii) all other valid and enforceable
liens and encumbrances of Subsidiary with respect to such assets (the “Purchase
Price”).

 

3.                                     Subsidiary’s
Limited Representations and Warranties. Subsidiary hereby represents and
warrants that:

 

(a)                                  Existence
and Power. Subsidiary is a corporation duly organized, validly existing and
in good standing under the laws of the State of Illinois and is wholly owned by
Magnetek at the time of this transaction. Subsidiary has all corporate power
and authority and all governmental licenses, authorizations, consents and
approvals to own the Assets.

 

(b)                                 Authority:
Enforceability. Subsidiary has full capacity, right, and all corporate

 

 

power and authority, to enter
into this Bill of Sale and Assignment and consummate the transactions
contemplated hereunder.

 

(c)                                Title
to Assets. Subsidiary hereby represents and warrants to Magnetek that it
has all legal and beneficial right, title and interest in and to the Assets
subject to the liens and encumbrances set forth in Section 1.

 

4.                                     Magnetek’s
Representations and Warranties. Magnetek hereby represents and warrants
that:

 

(a)                                  Residence.
Magnetek is a corporation duly organized, validly existing and in good standing
under the laws of the state of Delaware. Magnetek has full capacity, right, and
all corporate power and authority, to enter into this Bill of Sale and
Assignment and consummate the transactions contemplated hereunder.

 

(b)                               Knowledge
of Business and Assets. Magnetek is familiar with Subsidiary’s business and
with the Assets and has seen and inspected, or prior to the Effective Date will
see and inspect, all of the Assets to be transferred pursuant to this Bill of
Sale and Assignment and further, Magnetek accepts the Assets, “AS IS, WHERE IS
AND WILL ALL FAULTS”.

 

5.                                     Governing
Law. This Bill of Sale and Assignment will be governed by and interpreted
in accordance with the laws of the State of Delaware, including all matters of
construction, validity, performance and enforcement, without giving effect to
principles of conflict of laws.

 

6.                                     Further
Acts. Each party will in good faith perform such further acts and execute
such additional agreements as necessary to effectuate the purposes of this Bill
of Sale and Assignment.

 

7.                                     Entire
Agreement. This Bill of Sale and Assignment shall, together with the Plan
of Complete Liquidation and Dissolution of the Subsidiary made on or about June
10, 2004, constitute the entire agreement between Magnetek and Subsidiary, and
no prior agreements, oral or written, shall be binding upon either party to the
extent that they purport to be binding with respect to the transactions contemplated
hereby.

 

8.                                     Non-Waiver.
Unless expressly waived in writing, the failure of either party to enforce the
terms of this Bill of Sale and Assignment or to take action to remedy any
alleged breach of this Bill of Sale and Assignment shall not constitute a
waiver of such alleged breach or failure to perform, nor shall it constitute a
waiver of either party’s rights with respect to any subsequent failure to
perform or alleged breach of this Bill of Sale and Assignment.

 

2

 

IN WITNESS
WHEREOF, the parties have executed this Bill of Sale and Assignment as of the
date first above written.

 

 

	
  MXT
  HOLDINGS, INC.

  	
  MAGNETEK,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ David P.
  Reiland

  	
   

  	
  By:

  	
  /s/ David P.
  Reiland

  	
   

  
	
   

  	
  David P.
  Reiland

  	
   

  	
  David P.
  Reiland

  
	
   

  	
  President

  	
   

  	
  Executive
  Vice President

  
	
   

  	
   

  	
  And Chief
  Executive Officer

  
						

 

3

 

EXHIBIT B

 

(Replacement Schedule 5.9)

 

 

SCHEDULE 5.9

 

CAPITALIZATION AND SUBSIDIARIES

 

[Schedule 5.9 sets forth (a) a correct and complete list of the name
and relationship to the Borrowers of each and all of the Borrowers’ Affillates,
(b) the location of the chief executive office of the Borrowers and each of its
Subsidiaries and each other location where any of them have maintained their
chief executive office in the past five years, (c) a true and complete listing
of each class of each of the Loan Parties’ authorized Capital Stock and, with
respect to all loan Parties other than Magnetek, is owned beneficially and of
record by the Persons identified on Schedule 5.9, and (d) the type of entity of
each of the Loan Parties.]

 

[With respect to each Loan Party, Schedule 5.9 also sets forth the
employer or taxpayer identification number of each Loan Party and the
organizational identification number issued by each Loan Party’s jurisdiction
of organization or a statement that no such number has been issued.]

 

Missing information to be supplemented at such time as the stock
certificates are delivered pursuant to Section 4.2(h) of the Credit Agreement.

 

	
  MAGNETEK, INC.

  
	
  Jurisdiction of Organization

  	
   

  	
  Delaware

  
	
  Type of Entity

  	
   

  	
  Corporation

  
	
  Employer or Tax ID Number

  	
   

  	
  95-3917584

  
	
  Chief Executive Office(s)

  	
   

  	
  10900 Wilshire Blvd., Suite 850

  Los Angeles, CA 90024

  
	
  Classes of Stock Outstanding

  	
   

  	
  Common Stock

  
	
  Stock Certificate Number(s)

  	
   

  	
  n/a

  
	
  Authorized Shares

  	
   

  	
  n/a

  
	
  Issued Shares

  	
   

  	
  n/a

  
	
  Shares Owned By

  	
   

  	
  n/a

  
	
  Percent Ownership

  	
   

  	
  n/a

  

 

 

	
  MAGNETEK ADS POWER, INC.

  
	
  Jurisdiction of Organization

  	
   

  	
  Delaware

  
	
  Type of Entity

  	
   

  	
  Corporation

  
	
  Employer or Tax ID Number

  	
   

  	
  94-3389525

  
	
  Chief Executive Office(s)

  	
   

  	
  2025 Royal Lane

  Dallas, TX 75229

  
	
  Classes of Stock Outstanding

  	
   

  	
  Common Stock

  
	
  Stock Certificate Number(s)

  	
   

  	
  #2

  
	
  Authorized Shares

  	
   

  	
  1,000

  
	
  Issued Shares

  	
   

  	
  1

  
	
  Shares Owned By

  	
   

  	
  Magnetek, Inc.

  
	
  Percent Ownership

  	
   

  	
  100%

  
	
   

  	
   

  	
   

  
	
  MAGNETEK MONDEL HOLDING, INC.

  
	
  Jurisdiction of Organization

  	
   

  	
  Delaware

  
	
  Type of Entity

  	
   

  	
  Corporation

  
	
  Employer or Tax ID Number

  	
   

  	
  62-1842647

  
	
  Chief Executive Office(s)

  	
   

  	
  10900 Wilshire Boulevard, Suite 850

  Los Angeles, CA 90024

  
	
  Classes of Stock Outstanding

  	
   

  	
  Common Stock

  
	
  Stock Certificate Number(s)

  	
   

  	
  #1

  
	
  Authorized Shares

  	
   

  	
  1,000

  
	
  Issued Shares

  	
   

  	
  1,000

  
	
  Shares Owned By

  	
   

  	
  Magnetek, Inc.

  
	
  Percent Ownership

  	
   

  	
  100%

  
	
   

  	
   

  	
   

  
	
  MONDEL ULC

  
	
  Jurisdiction of Organization

  	
   

  	
  Delaware

  
	
  Type of Entity

  	
   

  	
  Corporation

  
	
  Employer or Tax ID Number

  	
   

  	
  Ontario Tax ID #5445930

  Business Code: 873370191 RC0002

  
	
  Chief Executive Office(s)

  	
   

  	
  2610 Dunwin Drive

  Mississauga, Ontario L5L-IJ5

  
	
  Classes of Stock Outstanding

  	
   

  	
  Common Stock

  
	
  Stock Certificate Number(s)

  	
   

  	
  #2

  
	
  Authorized Shares

  	
   

  	
  50,000,000

  
	
  Issued Shares

  	
   

  	
  1

  
	
  Shares Owned By

  	
   

  	
  Magnetek Mondel Holding, Inc.

  
	
  Percent Ownership

  	
   

  	
  100%

  

 

 

	
  MAGNETEX INDUSTRIAL CONTROLS GROUP (UK)
  LIMITED

  
	
  Jurisdiction of Organization

  	
   

  	
  United Kingdom

  
	
  Type of Entity

  	
   

  	
  Company

  
	
  Employer or Tax ID
  Number

  	
   

  	
  Company number 4657162

  
	
  Chief Executive Office(s)

  	
   

  	
  27 St. Cuthberts Street

  Bedford

  Bedfordshire MK40 3JG

  
	
  Classes of Stock Outstanding

  	
   

  	
  Common Stock

  
	
  Stock Certificate Number(s)

  	
   

  	
  #1

  
	
  Authorized Shares

  	
   

  	
  1,000

  
	
  Issued Shares

  	
   

  	
  1

  
	
  Shares Owned By

  	
   

  	
  Magnetek, Inc.

  
	
  Percent Ownership

  	
   

  	
  100%

  
	
   

  	
   

  	
   

  
	
  MAGNETEX, S.P.A.

  
	
  Jurisdiction of  Organization

  	
   

  	
  Italy

  
	
  Type of Entity

  	
   

  	
  Company

  
	
  Employer or Tax ID
  Number

  	
   

  	
  n/a

  
	
  Chief Executive Office(s)

  	
   

  	
  52028 Terranuova Bracciolini

  (AR) Italy

  
	
  Classes of Stock Outstanding

  	
   

  	
  Common

  
	
  Stock Certificate Number(s)

  	
   

  	
   

  
	
  Authorized Shares

  	
   

  	
  22,000,000

  
	
  Issued Shares

  	
   

  	
  14,300,000

  
	
  Shares Owned By

  	
   

  	
  Magnetek, Inc.

  
	
  Percent Ownership

  	
   

  	
  100%

  
	
   

  	
   

  	
   

  
	
  MAGNETEX INDUSTRIAL CONTROLS GROUP (UK)
  LIMITED

  
	
  Jurisdiction of Organization

  	
   

  	
  Hungary

  
	
  Type of Entity

  	
   

  	
  Company

  
	
  Employer or Tax ID
  Number

  	
   

  	
  n/a

  
	
  Chief Executive Office(s)

  	
   

  	
  Cehmester u.3 2013-Pomaz (Budapest) Hungary

  
	
  Classes of Stock Outstanding

  	
   

  	
   

  
	
  Stock Certificate Number(s)

  	
   

  	
   

  
	
  Authorized Shares

  	
   

  	
   

  
	
  Issued Shares

  	
   

  	
   

  
	
  Shares Owned By

  	
   

  	
  Magnetek, S.p.A.

  
	
  Percent Ownership

  	
   

  	
  100%

  

 

 

	
  MAGNETEX CHINA

  
	
  Jurisdiction of Organization

  	
   

  	
  China

  
	
  Type of Entity

  	
   

  	
  Company

  
	
  Employer or Tax ID
  Number

  	
   

  	
  n/a

  
	
  Chief Executive Office(s)

  	
   

  	
  Block 17, Area A, Tantou Western Industrial Park, Songgan,

  Bao’an District Shenzhen, 518105, China

  
	
  Classes of Stock Outstanding

  	
   

  	
   

  
	
  Stock Certificate Number(s)

  	
   

  	
   

  
	
  Authorized Shares

  	
   

  	
   

  
	
  Issued Shares

  	
   

  	
   

  
	
  Shares Owned By

  	
   

  	
  Magnetek, S.p.A.

  
	
  Percent Ownership

  	
   

  	
  100%

  

 

Note: Magnetek China is currently owned by ARCO, a Hong Kong company
that is being dissolved. ARCO is 95% owned by SpA and 5% owned by KFT (SpA’s
Hungarian subsidiary). After dissolution of ARCO, Magnetek, China will be 100%
owned by SpA.

 

	
  MAGNETEX VERTRIEBSGESELLSCHAFT mbH

  
	
  Jurisdiction of Organization

  	
   

  	
  Germany

  
	
  Type of Entity

  	
   

  	
  Company

  
	
  Employer or Tax ID
  Number

  	
   

  	
  n/a

  
	
  Chief Executive Office(s)

  	
   

  	
  Osterwald StraBe, Haus C11/III

  D-80805 Munchen Deutschland

  
	
  Classes of Stock Outstanding

  	
   

  	
   

  
	
  Stock Certificate Number(s)

  	
   

  	
   

  
	
  Authorized Shares

  	
   

  	
   

  
	
  Issued Shares

  	
   

  	
   

  
	
  Shares Owned By

  	
   

  	
  Magnetek, S.p.A.

  
	
  Percent Ownership

  	
   

  	
  67%

  

 

NOTE: This company was established to sell
product in Germany and is essentially a sales office. It is 1/3 owned by Peter
Raadsen, the sales person in Germany.

 

 

NOTE: THE FOLLOWING ENTITIES ARE ALL INACTIVE

 

	
  MAGNETEK NATIONAL ELECTRIC COIL, INC.
  (Inactive)

  
	
  Jurisdiction of Organization

  	
   

  	
  Delaware

  
	
  Type of Entity

  	
   

  	
  Corporation

  
	
  Employer of Tax ID Number

  	
   

  	
  76-0150791

  
	
  Chief Executive Office(s)

  	
   

  	
  26 Century Boulevard, Suite 600

  Nashville, TN 37214

  
	
  Classes of Stock Outstanding

  	
   

  	
  Common Stock

  
	
  Stock Certificate Number(s)

  	
   

  	
   

  
	
  Authorized Shares

  	
   

  	
   

  
	
  Issued Shares

  	
   

  	
   

  
	
  Shares Owned By

  	
   

  	
  Magnetek, Inc.

  
	
  Percent Ownership

  	
   

  	
  100%

  

 

	
  MAGNETEK LEASING CORPORATION (Inactive)

  
	
  Jurisdiction of Organization

  	
   

  	
  Delaware

  
	
  Type of Entity

  	
   

  	
  Corporation

  
	
  Employer of Tax ID Number

  	
   

  	
  95-4367265

  
	
  Chief Executive Office(s)

  	
   

  	
  10900 Wilshire Boulevard, Suite 850

  Los Angeles, CA 90024

  
	
  Classes of Stock Outstanding

  	
   

  	
  Common; Preferred

  
	
  Stock Certificate Number(s)

  	
   

  	
  #3; Issued to third party

  
	
  Authorized Shares

  	
   

  	
  1,000; 100,000

  
	
  Issued Shares

  	
   

  	
  100; 50,000

  
	
  Shares Owned By

  	
   

  	
  Magnetek, Inc.; Equilease Leasing Corporation

  
	
  Percent Ownership

  	
   

  	
  80% by Magnetek, Inc.

  

 

	
  MAGNETEK DE MEXICO, S.A. DE C.V.(Inactive)

  
	
  Jurisdiction of Organization

  	
   

  	
  Mexico

  
	
  Type of Entity

  	
   

  	
  Company

  
	
  Employer of Tax ID Number

  	
   

  	
  n/a

  
	
  Chief Executive Office(s)

  	
   

  	
   

  
	
  Classes of Stock Outstanding

  	
   

  	
   

  
	
  Stock Certificate Number(s)

  	
   

  	
   

  
	
  Authorized Shares

  	
   

  	
   

  
	
  Issued Shares

  	
   

  	
   

  
	
  Shares Owned By

  	
   

  	
  Magnetek, Inc.

  
	
  Percent Ownership

  	
   

  	
  99%

  

 

 

	
  MANUFACTURAS ELECTRICAS DE REYNOSA, S.A. DE
  C.V. (Inactive)

  
	
  Jurisdiction of Organization

  	
   

  	
  Mexico

  
	
  Type of Entity

  	
   

  	
  Company

  
	
  Employer of Tax ID Number

  	
   

  	
  n/a

  
	
  Chief Executive Office(s)

  	
   

  	
  Brecha E 99 Nte.

  Parque Industrial

  Reynosa Reynosa, Tamaulipas Mexico C.P. 88780

  
	
  Classes of Stock Outstanding

  	
   

  	
   

  
	
  Stock Certificate Number(s)

  	
   

  	
   

  
	
  Authorized Shares

  	
   

  	
   

  
	
  Issued Shares

  	
   

  	
   

  
	
  Shares Owned By

  	
   

  	
  Magnetek, Inc.

  
	
  Percent Ownership

  	
   

  	
  99%

  
	
   

  	
   

  	
   

  
	
  MEJOR ELECTRONICA DE MEXICO, S.A. DE C.V.
  (Inactive)

  
	
  Jurisdiction of Organization

  	
   

  	
  Mexico

  
	
  Type of Entity

  	
   

  	
  Company

  
	
  Employer of Tax ID Number

  	
   

  	
  n/a

  
	
  Chief Executive Office(s)

  	
   

  	
   

  
	
  Classes of Stock Outstanding

  	
   

  	
   

  
	
  Stock Certificate Number(s)

  	
   

  	
   

  
	
  Authorized Shares

  	
   

  	
   

  
	
  Issued Shares

  	
   

  	
   

  
	
  Shares Owned By

  	
   

  	
  Magnetek, Inc.

  
	
  Percent Ownership

  	
   

  	
  99%

  
	
   

  	
   

  	
   

  
	
  SERVICIO DE GUARDERIAS, S.C. (Inactive)

  
	
  Jurisdiction of Organization

  	
   

  	
  Mexico

  
	
  Type of Entity

  	
   

  	
  Company

  
	
  Employer of Tax ID Number

  	
   

  	
  n/a

  
	
  Chief Executive Office(s)

  	
   

  	
  Brecha E 99 Nte.

  Parque Industrial

  Reynosa Reynosa, Tamaulipas Mexico C.P. 88780

  
	
  Classes of Stock Outstanding

  	
   

  	
   

  
	
  Stock Certificate Number(s)

  	
   

  	
   

  
	
  Authorized Shares

  	
   

  	
   

  
	
  Issued Shares

  	
   

  	
   

  
	
  Shares Owned By

  	
   

  	
  Magnetek, Inc.

  
	
  Percent Ownership

  	
   

  	
  99%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]