Document:

Exhibit 10.2

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

This First
Amendment to Credit Agreement is made as of this 17 day of October, 2003 by and
among

 

TUESDAY
MORNING CORPORATION, a Delaware corporation, and

 

the GUARANTORS
party to the Credit Agreement, and

 

each of the
REVOLVING CREDIT LENDERS party to the Credit Agreement, and

 

FLEET NATIONAL
BANK, as the issuer of Letters of Credit and as Administrative Agent for the
Revolving Credit Lenders

 

in consideration of the mutual
covenants herein contained and benefits to be derived herefrom.

 

W I T N E S S E T H

 

A.                                   Reference
is made to the Credit Agreement (as amended and in effect, the “Credit
Agreement”) dated as of September 27, 2002 by and between, among others, the
Borrower, the Guarantors, the Revolving Credit Lenders, and the Administrative
Agent.

 

B.                                     The
Borrower, the Guarantors, the Revolving Credit Lenders, and the Administrative
Agent desire to modify and amend certain provisions of the Credit Agreement.

 

Accordingly,
the Administrative Agent, the Revolving Credit Lenders, the Borrower and the
Guarantors agree as follows:

 

1.                                       Definitions.  Capitalized terms used herein and not other­wise
defined herein shall have the meanings assigned to such terms in the Credit
Agreement.

 

2.                                       Amendments
to Section 1 of the Credit Agreement. 
The provisions of Section 1 of the Credit Agreement are hereby amended
as follows:

 

(a)                                  by
deleting the definition of “Borrowing Base” and substituting the following in
its stead:

 

“Borrowing
Base” shall mean, as at any date, (i) the lesser of (A) up to the Inventory
Advance Rate of the aggregate value of Eligible Inventory (net of Inventory
Reserves) at said date or (B) up to the Appraisal Percentage Rate of the
Appraised Inventory Liquidation Value of Eligible Inventory, minus (ii)
Availability Reserves.

 

(b)                                 by
deleting the definitions of “Normal Advance Rate”, “Increased Advance Rate” and
“Overadvance Period” in their entirety.

 

1

 

(c)                                  by
adding the following new definitions in appropriate alphabetical order:

 

“Appraisal
Percentage Rate” shall mean (a) 95% through December 31, 2004, and (b) 90%
at all times thereafter.

 

“Inventory
Advance Rate” shall mean (a) 75% through December 31, 2004, and (b) 70% at
all times thereafter.

 

“Utilization
Fee” shall have the meaning set forth in Section 2.6(c).

 

3.                                       Amendments
to Section 2 of the Credit Agreement. 
The provisions of Section 2 of the Credit Agreement are hereby amended
as follows:

 

(a)                                  The
provisions of Section 2.5(c) of the Credit Agreement are hereby deleted in
their entirety and the following substituted in their stead:

 

(c)   Intentionally Omitted.

 

(b)                                 The
words “and/or Overadvance Period, as applicable” are hereby deleted from
Section 2.5(d) of the Credit Agreement.

 

(c)                                  The
following new subsection is hereby added at the end of Section 2.6 of the
Credit Agreement:

 

(c)    Borrower shall pay to the Administrative
Agent for the account of each Revolving Credit Lender a utilization fee (the
“Utilization Fee”) on, and to the extent that, the daily amount of the
outstanding Loans and Letter of Credit Liabilities exceeds 50% of the Revolving
Credit Commitments, such Utilization Fee to accrue and be payable at a rate per
annum equal to 0.125% of such excess until all Obligations have been repaid in
full and all Revolving Credit Commitments terminated.  Any accrued Utilization Fee under this Section 2.6(c) shall be
payable in arrears on each Quarterly Date and upon repayment in full of the
Obligations.

 

(d)                                 The
provisions of Section 2.13 of the Credit Agreement are hereby deleted in their
entirety and the following substituted in their stead:

 

2.13  Annual Cleandown.  For a consecutive fifteen-day period between
the first day of November and the last day of December of each calendar year, the
sum of the aggregate principal amount of Revolving Credit Loans outstanding, plus
the aggregate outstanding principal amount of Swing Loans, shall not exceed
$20,000,000.

 

4.                                       Amendments
to Section 9 of the Credit Agreement. 
The provisions of Section 9

 

2

 

of the Credit Agreement are
hereby amended as follows:

 

(a)                                  The
provisions of Sections 9.1(j)(i) are hereby deleted in their entirety and the
following substituted in their stead:

 

(i) Intentionally
Omitted.

 

(b)                                 The
provisions of Sections 9.1(j)(ii) are hereby deleted in their entirety and the
following substituted in their stead:

 

(ii)   As soon as available and in any event
within ten (10) calendar days after the end of each monthly accounting period
(ending on the last day of each calendar month), a Borrowing Base Certificate
as of the last day of such monthly accounting period; if Borrower fails to
deliver any such Borrowing Base Certificate within the (10) calendar days after
the end of any such month, then the Borrowing Base shall be deemed to be $0
until such time as Borrower shall deliver such required Borrowing Base
Certificate;

 

(c)                                  Section
9.10(c) of the Credit Agreement is hereby deleted in its entirety and the
following is substituted in its stead:

 

(c)   so long as no Default or Event of Default
then exists or would arise therefrom, Borrower may make repurchases,
redemptions or other acquisitions of its Equity Interests and may declare and
make Dividend Payments to the extent made pro rata to the holders of all Equity
Interests thereof; provided, however, that, after giving pro
forma effect to each such repurchase, redemption, other acquisition or
Dividend Payment:

 

(i)   the amount of all such repurchases,
redemptions, other acquisitions and Dividend Payments shall not exceed, in the
aggregate, $40,000,000 in any twelve month period;

 

(ii)  Borrower shall be in compliance with all
covenants and agreements set forth herein (including Section 9.11); and

 

(iii) within
two Business Days of each such repurchase, redemption, other acquisition, or
Dividend Payment, Borrower shall deliver to the Administrative Agent an
Officers’ Certificate stating compliance with this Section 9.10(c).

 

(d)                                 The
provisions of Sections 9.15(a) are hereby deleted in their entirety and the
following substituted in their stead:

 

(a) Intentionally
Omitted.

 

3

 

5.                                       Amendments
to Section 12 of the Credit Agreement. 
The provisions of Section 12.4(a)(i)(X) of the Credit Agreement are
hereby deleted in their entirety and the following substituted in their stead:

 

(X)  increase the applicable Inventory Advance
Rate or the Appraisal Percentage Rate, it
being understood, however, that the foregoing shall not prevent the
Administrative Agent, in its administration of the Revolving Credit Loans, from
restoring any component of the Borrowing Base which had been lowered by the
Administrative Agent back to the value of such component, as stated in this
Agreement or to an intermediate value.

 

6.                                       Miscellaneous.

 

(a)                                  This
First Amendment may be executed in several counterparts and by each party on a
separate counterpart, each of which when so executed and delivered shall be an
original, and all of which together shall constitute one instrument.

 

(b)                                 This
First Amendment expresses the entire understanding of the parties with respect
to the transactions contemplated hereby. 
No prior negotiations or discussions shall limit, modify, or otherwise
affect the provisions hereof.

 

(c)                                  Any
determination that any provision of this First Amendment or any application
hereof is invalid, illegal or unenforceable in any respect and in any instance
shall not effect the validity, legality, or enforceability of such provision in
any other instance, or the validity, legality or enforceability of any other
provisions of this First Amendment.

 

(d)                                 The
Borrower shall pay on demand all costs and expenses of the Administrative
Agent, including, without limitation, reasonable attorneys’ fees in connection
with the preparation, negotiation, execution and delivery of this First
Amendment.

 

(e)                                  The
Borrower warrants and represents that the Borrower has consulted with
independent legal counsel of the Borrower’s selection in connection with this
First Amendment and is not relying on any representations or warranties of the
Administrative Agent or its counsel in entering into this First Amendment.

 

 

[SIGNATURE PAGES FOLLOW]

 

4

 

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

 

	
   

  	
  TUESDAY
  MORNING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Terry L.
  Crump

  	
   

  
	
   

  	
  Name:

  	
  Terry L.
  Crump

  
	
   

  	
  Title:

  	
  Vice
  President, Finance

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TUESDAY
  MORNING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Terry L.
  Crump

  	
   

  
	
   

  	
  Name:

  	
  Terry L.
  Crump

  
	
   

  	
  Title:

  	
  Vice
  President, Finance

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRIDAY
  MORNING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Terry L.
  Crump

  	
   

  
	
   

  	
  Name:

  	
  Terry L.
  Crump

  
	
   

  	
  Title:

  	
  Vice
  President, Finance

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DAYS OF THE
  WEEK, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Terry L.
  Crump

  	
   

  
	
   

  	
  Name:

  	
  Terry L.
  Crump

  
	
   

  	
  Title:

  	
  Vice
  President, Finance

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TUESDAY
  MORNING PARTNERS, LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Days of the
  Week, Inc., its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Terry L.
  Crump

  	
   

  
	
   

  	
  Name:

  	
  Terry L.
  Crump

  
	
   

  	
  Title:

  	
  Vice
  President, Finance

  
					

 

5

 

	
   

  	
  NIGHTS OF
  THE WEEK, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alan
  Oppenheimer

  	
   

  
	
   

  	
  Name:

  	
  Alan
  Oppenheimer

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TMI
  HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alan
  Oppenheimer

  	
   

  
	
   

  	
  Name:

  	
  Alan
  Oppenheimer

  
	
   

  	
  Title:

  	
  President

  
						

 

6

 

	
   

  	
  FLEET
  NATIONAL BANK, as Administrative

  Agent and Issuing Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Judith
  C.E. Kelly

  	
   

  
	
   

  	
  Name:  Judith C.E. Kelly

  
	
   

  	
  Title:  Managing Director

  
	
   

  	
   

  
	
   

  	
  REVOLVING
  CREDIT LENDERS

  
	
   

  	
   

  
	
   

  	
  FLEET
  NATIONAL BANK, as a Revolving Credit

  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Judith
  C.E. Kelly

  	
   

  
	
   

  	
  Name:  Judith C.E. Kelly

  
	
   

  	
  Title:  Managing Director

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, N.A., as a Revolving

  Credit Lender and Syndication Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jason
  Weighter

  	
   

  
	
   

  	
  Name:  Jason Weighter

  
	
   

  	
  Title:  Assistant Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LASALLE BANK
  NATIONAL ASSOCIATION,

  as a Revolving Credit Lender and Documentation

  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Keith
  Cable

  	
   

  
	
   

  	
  Name: Keith
  Cable

  
	
   

  	
  Title:
  Assistant Vice President

  
	
   

  	
   

  
	
   

  	
  U.S. BANK
  NATIONAL ASSOCIATION, as a

  Revolving Credit Lender and Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Amanda
  Schmitt

  	
   

  
	
   

  	
  Name: Amanda
  Schmitt

  
	
   

  	
  Title:
  Assistant Vice President

  
						

 

7

 

	
   

  	
  WACHOVIA BANK, NATIONAL

  ASSOCIATION, as a Revolving Credit Lender and

  Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William
  F. Fox

  	
   

  
	
   

  	
  Name:  William F. Fox

  
	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  
	
   

  	
  BANK LEUMI
  USA, as a Revolving Credit Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gloria
  Bucher

  	
   

  
	
   

  	
  Name: Gloria
  Bucher

  
	
   

  	
  Title:
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
  FLEET
  NATIONAL BANK, successor by

  assignment to First American Bank, as a Revolving

  Credit Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Judith
  C.E. Kelly

  	
   

  
	
   

  	
  Name:  Judith C.E. Kelly

  
	
   

  	
  Title:  Managing Director

  
	
   

  	
   

  
	
   

  	
  GENERAL
  ELECTRIC CAPITAL

  CORPORATION, as a Revolving Credit Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert
  M. Kadlick

  	
   

  
	
   

  	
  Name:  Robert M. Kadlick

  
	
   

  	
  Title: Duly
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  NATIONAL
  CITY BANK, as a Revolving Credit

  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  J. Durbin

  	
   

  
	
   

  	
  Name:  Michael J. Durbin

  
	
   

  	
  Title:
  Senior Vice President

  

 

8

 

	
   

  	
  PB CAPITAL
  CORPORATION, as a Revolving

  Credit Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maria C.
  Levy / Steven Alexander

  	
   

  
	
   

  	
  Name:

  	
  Maria C.
  Levy / Steven Alexander

  
	
   

  	
  Title:

  	
  Vice
  President / Vice President

  
					

 

9Exhibit 4.1

 

[EXECUTION COPY]

 

 

 

REGISTRATION RIGHTS AGREEMENT

 

By and Between

 

MAGNETEK, INC.

 

and

 

U.S. TRUST COMPANY, NATIONAL ASSOCIATION

 

 

Dated as of June 26,
2002

 

 

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.

  	
  DEFINITIONS

  
	
   

  	
   

  
	
  SECTION 2.

  	
  REQUIRED REGISTRATION

  
	
  (a)

  	
  Shelf Registration Rights

  
	
  (b)

  	
  Piggyback
  Registration

  
	
  (c)

  	
  Duration
  of Registration

  
	
   

  	
   

  
	
  SECTION 3.

  	
  LIMITATIONS ON TRANSFERS

  
	
   

  	
   

  
	
  SECTION 4.

  	
  INTERRUPTIONS OF CONTINUOUS REGISTRATION

  
	
  (a)

  	
  Permitted
  Interruptions

  
	
  (b)

  	
  Holdback
  Agreements

  
	
  (c)

  	
  Cessation
  of Offers

  
	
   

  	
   

  
	
  SECTION 5.

  	
  REGISTRATION PROCEDURES

  
	
  (a)

  	
  State
  Law Compliance

  
	
  (b)

  	
  Underwritten
  Offering

  
	
  (c)

  	
  Confidentiality

  
	
  (e)

  	
  Information Regarding
  Pension Plan

  
	
   

  	
   

  
	
  SECTION 6.

  	
  NEGOTIATED TRANSFERS

  
	
   

  	
   

  
	
  SECTION 7.

  	
  EXPENSES OF REGISTRATION

  
	
   

  	
   

  
	
  SECTION 8.

  	
  INDEMNIFICATION

  
	
  (a)

  	
  Indemnification by the
  Company

  
	
  (b)

  	
  Indemnification
  by Holders of Registrable Securities

  
	
  (c)

  	
  Delivery
  of Prospectus

  
	
  (d)

  	
  Conduct of
  Indemnification Proceedings

  
	
  (e)

  	
  Contribution

  
	
   

  	
   

  
	
  SECTION 9.

  	
  GENERAL PROVISIONS

  
	
  (a)

  	
  Succession

  
	
  (b)

  	
  Termination

  
	
  (c)

  	
  Amendments
  and Waivers

  
	
  (d)

  	
  Notice

  
	
  (e)

  	
  Governing Law

  
	
  (f)

  	
  Counterparts

  
	
  (g)

  	
  Complete
  Agreement

  
	
  (h)

  	
  Headings; Interpretation

  
	
  (i)

  	
  Gender and
  Number

  
	
  (j)

  	
  No Third-Party
  Beneficiaries

  
	
  (k)

  	
  Cooperation

  
	
  (l)

  	
  Binding Effect, Assignment

  

 

ii

 

REGISTRATION
RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS
AGREEMENT is entered into as of June 26, 2002, by and between Magnetek,
Inc., a Delaware corporation (the “Company”), and U.S. Trust Company,
National Association, a national banking association, in its capacity as duly
appointed and acting investment manager (the “Manager”) of a segregated
account held in the trust (the “Trust”) created under the Magnetek, Inc.
FlexCare Plus Retirement Pension Plan (the “Pension Plan,” which term,
as used herein, shall include the Manager acting on behalf of the Pension Plan
and the Trust), for the account and on behalf of the Pension Plan (which shall
thereby be deemed a party to this Agreement). 
Capitalized terms used and not otherwise defined herein shall have the
respective meanings set forth in Section 1.

 

RECITALS:

 

WHEREAS, the Company has
agreed, subject to the satisfaction of certain regulatory and other conditions,
to contribute 900,000 shares of Common Stock to the Trust; and

 

WHEREAS, such shares of
Common Stock immediately following such contribution will be held in a
segregated account in the Trust (the “Segregated Account”); and

 

WHEREAS, the Manager has
been appointed as a “fiduciary” of the Pension Plan, as defined in
Section 3(21) of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”), with the authority to act on behalf of the Pension
Plan with respect to all assets held in the Segregated Account; and

 

WHEREAS, the Company has
agreed to grant the Manager certain registration rights with respect to shares
of Common Stock held in the Segregated Account, on the terms and subject to the
conditions herein set forth; and

 

WHEREAS, the Manager has
full power and authority to execute and deliver this Agreement for the account
and on behalf of the Pension Plan and to bind the Pension Plan.

 

NOW, THEREFORE, in
consideration of the mutual covenants and obligations set forth in this
Agreement, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

 

AGREEMENT:

 

Section 1.               Definitions.

 

In addition to those
terms that are defined in the preamble hereto, the following terms shall have
the following meanings as used in this Agreement:

 

“Agreement” means
this Registration Rights Agreement.

 

“Board of Directors”
means the Board of Directors of the Company and any authorized committee
thereof.

 

1

 

“Business Day”
means any day on which the New York Stock Exchange is open for trading.

 

“Code” means the
Internal Revenue Code of 1986, as amended.

 

“Common Stock”
means the Company’s Common Stock, par value $.01 per share.

 

“Company” is
defined in the preamble.

 

“ERISA” is defined
in the recitals.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“Form S-3” means
Form S-3 as promulgated by the SEC or any successor form that is substantially
similar thereto.

 

“Interruption Notice”
is defined in Section 4(a).

 

“Issuer” means,
initially, the Company, and thereafter, each successor issuer as described in Section 9(a).

 

“Negotiated Transfer”
is defined in Section 6(a).

 

“Permitted
Interruption” is defined in Section 4(a).

 

“Person” means an
individual, partnership, corporation, trust or unincorporated organization, or
a government, or agency or political subdivision thereof.

 

“Prospectus” means
the prospectus included in any Registration Statement, as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by such
Registration Statement and all other amendments and supplements to the
Prospectus, including post-effective amendments and all material incorporated by
reference in such Prospectus.

 

“Registered Transfer”
is defined in Section 6(b).

 

“Registrable
Securities” means all of the shares of Common Stock contributed by the
Company to the Pension Plan as described in the recitals hereto and any Common
Stock of the Company issued in respect thereof (in the form of a stock dividend
or otherwise)or in exchange or replacement for the Common Stock so contributed;
provided, however, that a security ceases to be a Registrable
Security upon its Transfer pursuant to Sections 3 or 6 hereof.

 

“Registration”
means the registration contemplated by Section 2 hereof, as the
same may be delayed, interrupted or resumed.

 

“Registration
Statement” means any registration statement of the Company in a
Registration which covers any of the Registrable Securities pursuant to the
provisions of Section 2 of this Agreement, including the
Prospectus, amendments and supplements to such

 

2

 

Registration
Statement, post-effective amendments, all exhibits and all material
incorporated by reference in such Registration Statement.

 

“Rule 144” means
Rule 144 under the Securities Act, or any successor or similar rule.

 

“Rule 415” means
Rule 415 under the Securities Act, or any successor or similar rule.

 

“SEC” means the
United States Securities and Exchange Commission.

 

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations
thereunder.

 

“Shelf Registration
Statement” is defined in Section 2(a).

 

“Transfer” means
any sale, transfer or other disposition (including any pledge and any
disposition upon the foreclosure of any pledge) or any agreement to do any of
the foregoing.

 

Section 2.               Required
Registration.

 

(a)           Shelf Registration Rights.  As promptly as reasonably practicable after
the date hereof, the Company shall use reasonable efforts to effect the
Registration of all of the Registrable Securities on a continuous basis under
Rule 415 by preparing and filing with the SEC a Registration Statement on
Form S-3 (the “Shelf Registration Statement”); provided, however,
that if, prior to the effective date of such Registration, circumstances arise
which would, after such date, constitute a Permitted Interruption, the Company
shall be entitled to delay the Registration for the period of such Permitted
Interruption but in no event shall such delay exceed forty-five (45) days.  The Company shall use reasonable efforts to
remain eligible to register its securities on Form S-3, including, without
limitation, remaining current in any required filings under the Exchange Act.

 

(b)           Piggyback Registration.  In the event the Company proposes to make an
underwritten offering of newly-issued Common Stock, the Company shall provide
the Manager with reasonable notice thereof and an opportunity to include
therein Registrable Securities, provided, however, that
(i) no Registrable Securities shall be included therein if, in the opinion
of the underwriters, their inclusion would impede the consummation of the
primary shares proposed to be included therein by the Company, and (ii) no
greater number shall be included than so approved by the underwriters as not
impeding such primary offering.  The
Company shall not grant registration rights after the date hereof and before
the expiration of the aforesaid piggyback rights that are superior in priority
to those granted herein.  The piggyback
registration rights in this Section 3(b) shall expire on the date that is
thirty-six (36) months after the date of this Agreement.

 

(c)           Duration of Registration.  The Company shall use reasonable efforts
(subject to any Permitted Interruption) to cause the Registration to remain in
effect until the date that is thirty-six months from the date of this
Agreement.

 

(d)           Under the circumstances
set forth in Section 4(a)(i), in the event the Company is required to
invoke such Section for a period longer than ninety (90) days, then after
the

 

3

 

expiration of such 90-day
period, the Company shall use its reasonable efforts to effect the registration
of the portion of the Registrable Securities indicated in a request from the
Manager.  The Company shall use
reasonable efforts to effect such registration within thirty (30) days of receipt
of such request and to maintain such registration effective for the period, not
to exceed the longer of 90 days and the remaining term hereof, indicated in the
plan of distribution.

 

Section 3.               Limitations on Transfers.

 

(a)           The Pension Plan shall
not make any Transfer of any Registrable Securities other than pursuant to
(i) the Shelf Registration Statement in accordance with the plan of
distribution described therein, (ii) Rule 144,  (iii) a Transfer to the
Company or a wholly-owned direct or indirect subsidiary of the Company pursuant
to a self-tender offer or otherwise, (iv) a Transfer in response to a
tender offer permitted under Section 3(c) below, (v) a
Negotiated Transfer permitted under Section 6 below or (vi) a
Transfer pursuant to a merger or consolidation in which the Company is a constituent
corporation.  All such Transfers shall
in addition be subject to the provisions of this Section 3 and all other
applicable provisions of this Agreement.

 

(b)           The Manager shall
provide the Company with a notice of a proposed Transfer within a reasonable
period of time before such proposed Transfer. 
Such notice shall state (i) the section of this Agreement
pursuant to which the Pension Plan proposes to Transfer Registrable Securities,
(ii) the maximum number of shares that the Pension Plan proposes to
Transfer and (iii) whether the Transfer or Transfers will occur on a date
specified in such notice or during a period of time specified in the
notice.  Each notice of a proposed
Transfer pursuant to this Section 3(b) shall be delivered a
reasonable period of time before such proposed Transfer and, in any event, as
to (x) Transfers under the Shelf Registration Statement or Rule 144, not
less than two Business Days before such proposed Transfer, and (y) Transfers
under Section 6, not less than five Business Days before such
proposed Transfer.  No such Transfer
shall be permitted unless the Company is reasonably satisfied that such
proposed Transfer is in compliance with ERISA, federal and state securities
laws and regulations and other applicable laws and regulations.  Without limiting the generality of the
foregoing, the Manager shall not effect any such Transfer if the Company’s
legal counsel advises the Company and the Manager in writing that such Transfer
would constitute a “prohibited transaction” (as described in Section 4975
of the Code), unless the Pension Plan establishes to the reasonable
satisfaction of the Company that an exemption from such Section is
available.

 

(c)           Notwithstanding the
provisions of this Agreement to the contrary, the Manager may effect a Transfer
by tendering all or any portion of the Registrable Securities into a bona fide
exchange offer, a tender offer or a request or invitation for tenders (as such
terms are used in Sections 14(d) or 14(e) of the Exchange Act and the rules and
regulations of the SEC thereunder) for Common Stock.

 

(d)           No Transfer of
Registrable Securities in violation of this Agreement shall be made or recorded
on the books of the Company, and any such attempted Transfer shall be void and
of no effect.  Subject to Section 3(e)
below, each certificate representing the Registrable Securities shall
conspicuously bear legends in substantially the following form:

 

4

 

THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAW
AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO
AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS.

 

THE SECURITIES
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A REGISTRATION RIGHTS AGREEMENT,
DATED AS OF JUNE 26, 2002 BY AND BETWEEN THE ISSUER OF SUCH SECURITIES
(THE “COMPANY”) AND U.S. TRUST COMPANY, NATIONAL ASSOCIATION THAT CONTAINS,
AMONG OTHER THINGS, CERTAIN RESTRICTIONS ON THE TRANSFER OF SUCH
SECURITIES.  A COPY OF SUCH REGISTRATION
RIGHTS AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER
HEREOF UPON WRITTEN REQUEST.

 

(e)           The Company will
instruct its transfer agent that the legends set forth in Section 3(d)
shall be removed upon the Pension Plan’s Transfer of shares of Common Stock if
such Transfer is made in accordance with all applicable provisions of this
Agreement; provided, however, that if such Transfer is a
Negotiated Transfer that is not registered under the Securities Act, the first
legend shall remain on the certificates representing such shares until such
time as the restrictions set forth in such legend cease to be applicable.

 

Section 4.               Interruptions
of Continuous Registration.

 

(a)           Permitted Interruptions.  The Company shall be entitled, effective
immediately upon notice given in conformity with Section 9(d) (an “Interruption
Notice”), to require the Pension Plan to cease to make any offers or sales
of the Registrable Securities under any Registration Statement then in effect
in the event that:

 

(i)            the
Company is no longer entitled to maintain a Registration on Form S-3 under
Rule 415;

 

(ii)           the
Company determines, as evidenced by a certificate of two of the Company’s
executive officers, in its good faith and reasonable judgment, that the
offering of any Registrable Securities would require disclosure of material,
nonpublic information not otherwise proposed to be disclosed; provided, however,
that such interruption shall not exceed 90 days from the date the Company makes
such determination; and provided, further, that the Company shall
not be entitled to require more than one (1) such interruption in any twelve
month period.

 

(iii)          the
Company has initiated bona fide discussions with an underwriter regarding the
sale of its securities in a registered primary public offering and in such

 

5

 

underwriter’s opinion, the continuation of offers and/or sales in the
Registration would have a material adverse effect on such offering under
discussion (in which case the interruption may not exceed 90 days from the
Interruption Notice); or

 

(iv)          at any
time the Company would be required, in order to maintain the effectiveness of
the Registration Statement, to obtain audited financial statements not being
prepared independently of the Registration, unless the Pension Plan undertakes
to pay the Company’s expenses in obtaining the requisite financial statements
(in which case the interruption shall terminate when the requisite financial
statements are available).

 

Each of the foregoing
events or any combination thereof shall be hereinafter referred to as a “Permitted
Interruption.”  In no event (other
than pursuant to clause 4(a)(i) or clause 4(b)) shall the Manager be
required to cease offers and sales under the Registration Statement for more
than an aggregate of 180 days in any consecutive twelve-month period pursuant
to Permitted Interruptions.

 

(b)           Holdback Agreements.  In the event the managing underwriter in any
registration effected by the Company that gives rise to a Permitted
Interruption so requests, the Manager will agree not to effect any public sale
or distribution of the shares of Registrable Securities held by them (including
a sale pursuant to Rule 144) for a period up to 180 days following the
effective date of such registration that so gives rise to a Permitted
Interruption, provided that such period shall not exceed the comparable
holdback period applicable to the Company’s directors and officers.

 

(c)           Cessation of Offers.  The Manager hereby agrees that, upon receipt
of any notice (including any Interruption Notice) from the Company of:

 

(i)            any
Permitted Interruption;

 

(ii)           any
request by the SEC for amendments or supplements to a Registration Statement or
Prospectus or for additional information;

 

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

 

(iv)          the
representations and warranties of the Company made in any underwriting
agreement relating to the Registration ceasing to be true and correct in any
material respect;

 

(v)           the receipt
by the Company of any notification with respect to the suspension of the
qualification of any Registrable Securities registered in such Registration for
sale in any jurisdiction or the initiation or threatening of any proceeding for
such purpose (in which case the cessation of sales shall pertain only to the
applicable jurisdiction);

 

(vi)          the
happening of any event which makes any statement made in a Registration
Statement, Prospectus or any document incorporated therein by reference untrue
in any material respect or which requires the making of any changes in any such
Registration Statement or Prospectus so that they will not contain any untrue
statement of a material fact or

 

6

 

omit to state any material
fact required to be stated therein or necessary to make the statements therein
not misleading; or

 

(vii)         the
Company’s reasonable determination that a post-effective amendment to a
registration statement would be appropriate;

 

that the Manager will forthwith discontinue
disposition of any Registrable Securities covered by such Registration
Statement until such Pension Plan’s receipt of any required supplemental or
amended materials or of advice in writing that use of the applicable Prospectus
may be resumed.  In such event, the
Company will use its reasonable efforts promptly to correct or supplement the
Registration Statement, to obtain the lifting of any stop order or otherwise to
remove the circumstances preventing the Manager from continuing to make offers
and sales under the Registration Statement, subject to the duration provided in
Section 4 of any Permitted Interruption.

 

Section 5.               Registration
Procedures.

 

(a)           State Law Compliance.  The Company shall use reasonable efforts to
cause the Registrable Securities covered by such Registration to be registered
in a reasonable number of jurisdictions as requested by the Manager, provided
that the Company shall not be obligated to file a general consent to service of
process or to qualify to do business as a foreign corporation or otherwise to
subject itself to taxation in connection with any such registration.

 

(b)           Underwritten Offering.  If any of the Registrable Securities covered
by the Registration are to be sold in an underwritten offering, the investment
banker or investment bankers and manager or managers that will administer the
offering will be selected by the Manager; provided, however, that
such investment bankers and managers must be reasonably satisfactory to the
Company.  The Company will enter into
such agreements (including an underwriting agreement) and take all such other
actions reasonably necessary in connection therewith in order to expedite or
facilitate the disposition of such Registrable Securities, and in such
connection:

 

(i)            make
such representations and warranties to the underwriters in form, substance and
scope as are customarily made by stockholders to underwriters in underwritten
offerings and confirm the same if and when requested;

 

(ii)           obtain
opinions of counsel to the Company and updates thereof (which counsel and
opinions (in form, scope and substance) shall be reasonably satisfactory to the
managing underwriter and the Pension Plan) addressed to the Pension Plan and
the underwriters, if any, covering the matters customarily covered in opinions
requested in underwritten offerings and such other matters as may be reasonably
requested by such holders and underwriters;

 

(iii)          enter
into an indemnity agreement in form, scope and substance as is customary in
underwritten offerings;

 

(iv)          obtain
“cold comfort” letters and updates thereof as appropriate from the Company’s
independent certified public accountants addressed to the underwriters, if any,
such letters to be in customary form and covering matters of the type
customarily covered in “cold

 

7

 

comfort” letters to
underwriters in connection with underwritten offerings (provided that no more
than one such cold comfort letter (and updates thereof) shall be required to be
provided at Company expense in connection with any one offering); and

 

(v)           deliver
such documents and certificates as may be reasonably requested by the Pension
Plan and the managing underwriter, if any.

 

(c)           Confidentiality.  Each of the parties will treat all notices of proposed Transfers
and all notices pursuant to Section 4(c) received from the other
party with the strictest confidence and will not disseminate such
information.  Nothing herein shall be
construed to require Company to make any public disclosure of information at
any time.

 

(d)           Information Regarding Pension Plan.  The Manager shall furnish to the Company
such information regarding the Pension Plan’s holdings of Common Stock and the
proposed manner of distribution thereof and such other information as the
Company may reasonably request and as shall be required in connection with the
Registration and with any qualification under state law referred to in Section 5(a).  The Company agrees that it will furnish to
the Manager the number of prospectuses, offering circulars or other documents,
or any amendments or supplements thereto, incident to such qualification under
state law referred to in this Section 5 as the Pension Plan from
time to time may reasonably request.

 

Section 6.               Negotiated Transfers.

 

(a)           The
Manager shall deliver to Company a written notice that the Manager proposes to
make a Transfer of Registrable Securities pursuant to a negotiated transaction
or series of related transactions with one or more transferees (each such
transaction or series of related transactions, whether registered or not, being
referred to herein collectively as a “Negotiated Transfer”).  Each notice of a proposed Negotiated
Transfer shall be delivered a reasonable period of time before the proposed
Transfer and, in any event, not less than five Business Days before the
proposed commencement of such proposed Transfer.  Each notice of a proposed Negotiated Transfer shall specify the
approximate number of Registrable Securities proposed to be Transferred, the
proposed timetable for the transaction, whether the transfer will be made
pursuant to the Shelf Registration Statement, and the anticipated per share
price for such Transfer.  If the
Registrable Securities subject to any Negotiated Transfer are not registered
under the Securities Act, the Pension Plan shall, prior to effecting such
Negotiated Transfer, cause each transferee in such Negotiated Transfer to
represent and warrant to the Pension Plan and Company in writing that
(i) such transferee is acquiring such Registrable Securities for its own
account, or for one or more accounts, as to each of which such transferee
exercises sole investment discretion, for investment purposes only and not with
a view to, or for resale in connection with, any distribution (within the
meaning of the Securities Act), (ii) such transferee has such knowledge
and experience in financial and business matters as to be capable of evaluating
the merits and risks of an investment in the Registrable Securities, and
(iii) such transferee acknowledges that such Transfer has not been and
will not be registered under the Securities Act or any state securities law and
such Registrable Securities may not be resold unless registered under the
Securities Act or unless such resale is exempt therefrom.

 

8

 

(b)           Unless approved in
advance in writing by the Company, which may withhold such approval in its
discretion, the Manager shall not make a Negotiated Transfer to any one Person
(or group of related Persons) if such Person (or group of related Persons) is,
or as a result of such Negotiated Transfer will be (to the knowledge of the
Pension Plan after reasonable inquiry), the beneficial owner, as defined for
purposes of Section 13(d) of the Exchange Act (or any successor thereto),
of more than 5% of Company’s outstanding Common Stock.

 

(c)           The Company shall make
available members of the management of the Company for such assistance as is
reasonably requested by the Manager and its counsel in selling efforts relating
to any Negotiated Transfer.

 

Section 7.               Expenses
of Registration.

 

The Company will bear all
expenses of the Registration (other than underwriting discounts and commissions
and brokerage commissions and fees, if any), including, without limitation,
registration fees and legal and accounting fees (subject to Section 4
regarding audited financial statements and Section 5 regarding
comfort letters) incurred by the Company in connection with any such
Registration and amendments or supplements in connection therewith; provided,
however, that the Company will not be required to reimburse the Manager
for attorneys’ fees incurred hereunder exceeding $30,000 (plus any reasonably
incurred out-of-pocket expenses incurred by such counsel) incurred in any
calendar year or after 36 months from the date hereof.

 

Section 8.               Indemnification.

 

(a)           Indemnification by the Company.  The Company agrees to indemnify and hold
harmless, to the full extent permitted by law, each of the Pension Plan and the
Trust, the Manager and its agents against all losses, claims, damages,
liabilities and expenses caused by any untrue or alleged untrue statement of a
material fact contained in any Registration Statement, Prospectus or
preliminary prospectus or any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, except insofar as the same are caused by or contained
in any information furnished in writing to the Company by such Person or its agents
or any underwriter thereof expressly for use therein.  The Company will also indemnify underwriters, selling brokers,
dealer managers and similar securities industry professionals participating in
the distribution, their officers and directors and each Person who controls
such Persons (within the meaning of the Securities Act) to the same extent as
provided above with respect to the indemnification of the Pension Plan, the
Trust, the Manager and its agents, if requested.  The Company shall be entitled to receive indemnities from
underwriters, selling brokers, dealer managers and similar securities industry
professionals participating in the distribution to the same extent as provided
above with respect to information so furnished in writing by such Persons
specifically for inclusion in any Prospectus or Registration Statement.

 

(b)           Indemnification by Holders of
Registrable Securities. 
Each of the Pension Plan and the Trust severally agrees to indemnify, to
the full extent permitted by law, the Company, its directors and officers and
each Person who controls the Company (within the meaning of the Securities Act)
against any losses, claims, damages, liabilities and expenses caused by any
untrue

 

9

 

statement of a material
fact or any omission of a material fact required to be stated in any
Registration Statement or Prospectus or preliminary prospectus or necessary to
make the statements therein (in the case of a Prospectus, in the light of the
circumstances under which they were made) not misleading, to the extent, but
only to the extent, that such untrue statement or omission is contained in any
information or affidavit so furnished in writing by such Person specifically
for inclusion in such Registration Statement or Prospectus.  In no event shall the liability of the
Pension Plan or the Trust hereunder be greater in amount than the dollar amount
of the proceeds received by the Pension Plan upon the sale of the Registrable
Securities giving rise to such indemnification obligation.

 

(c)           Delivery of Prospectus.  The indemnification provisions in Sections 8(a)
and (b) above are subject to the condition that, insofar as they relate
to any untrue statement (or alleged untrue statement) or omission (or alleged
omission) made in a preliminary prospectus or prospectus but eliminated or
remedied in the amended prospectus on file with the SEC at the time the
registration statement becomes effective or in any amended prospectus filed
with the SEC pursuant to Rule 424(b) or 424(c) (the “Final Prospectus”),
such indemnity provisions shall not inure to the benefit of any underwriter,
the Pension Plan, the Trust, the Manager or its agents, if the Company has
previously delivered copies of such Final Prospectus to such underwriter, the
Pension Plan, the Trust, the Manager or its agents and if a copy of the Final
Prospectus was not furnished by such underwriter, the Pension Plan, the Trust,
the Manager or its agents, as the case may be, to the Person asserting the
loss, liability, claim or damage prior to or concurrently with the sale of a
Registrable Security to such Person.

 

(d)           Conduct of Indemnification
Proceedings.  Any Person
entitled to indemnification hereunder will (i) give prompt notice to the
indemnifying party of any claim with respect to which it seeks indemnification
and (ii) permit such indemnifying party to assume the defense of such
claim with counsel reasonably satisfactory to the indemnified party; provided,
however, that any Person entitled to indemnification hereunder shall
have the right to employ separate counsel and to participate in the defense of
such claim, but the fees and expenses of counsel shall be at the expense of
such Person unless (a) the indemnifying party has agreed to pay such fees
or expenses, or (b) the indemnifying party shall have failed to assume the
defense of such claims and employ counsel reasonably satisfactory to such
Person or (c) in the reasonable judgment of any such Person, based upon
advice of such Person’s counsel, a conflict of interest may exist between such
Person and the indemnifying party with respect to such claims (in which case,
if the Person notifies the indemnifying party in writing that such Person
elects to employ separate counsel at the expense of the indemnifying party, the
indemnifying party shall not have the right to assume the defense of such claim
on behalf of such Person).  If such
defense is not assumed by the indemnifying party, the indemnifying party will
not be subject to any liability for any settlement made without its consent
(but such consent will not be unreasonably withheld or delayed).  No indemnifying party will consent to entry
of any judgment or enter into any settlement which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to the
indemnified party of a release from all liability in respect to such claim or
litigation.  An indemnifying party who
is not entitled to, or elects not to, assume the defense of a claim will not be
obligated to pay the fees and expenses of more than one counsel for all parties
indemnified by such indemnifying party with respect to such claim, unless in
the opinion of counsel to such Person a conflict of interest exists between
such Person and another indemnified Person with respect to such claim.

 

10

 

(e)           Contribution.  If the indemnification provided for in this Section 8
from the indemnifying party is unavailable to an indemnified party hereunder in
respect of any losses, claims, damages, liabilities or expenses referred to
therein, then the indemnifying party, in lieu of indemnifying such indemnified
party, shall contribute to the amount paid or payable by such indemnified party
as a result of such losses, claims, damages, liabilities or expenses in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party and indemnified party in connection with the actions which resulted in
such losses, claims, damages, liabilities or expenses, as well as any other relevant
equitable considerations.  The relative
fault of such indemnifying party and indemnified party shall be determined by
reference to, among other things, whether any action in question, including any
untrue or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact, has been made by, or relates to information
supplied by, such indemnifying party or indemnified party, and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such action.  The amount paid or
payable by a party as a result of the losses, claims, damages, liabilities and
expenses referred to above shall be deemed to include, subject to the
limitations set forth in Section 8(d) hereof, any legal or other
fees or expenses reasonably incurred by such party in connection with any
investigation or proceeding.

 

The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 8(e) were
determined by pro rata allocation or by any other method of allocation which
does not take into account the equitable considerations referred to in the
immediately preceding paragraph. 
Notwithstanding the provisions of this Section 8(e), in no
event shall (i) the Pension Plan be required to contribute any amount in
excess of the amount by which the total price at which the Registrable
Securities sold by the Pension Plan and distributed to the public were offered
to the public exceeds the amount of damages which such holder has otherwise been
required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission or (ii) the Manager hereunder be required to
contribute any amount in excess of the aggregate fees received to date by the
Manager in connection with the Trust. 
No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution
from any Person who was not guilty of such fraudulent misrepresentation.

 

Section 9.               General
Provisions.

 

(a)           Succession.  In the event that the Registrable Securities
are to be converted into or exchanged for (or become the right to receive)
securities of an issuer other than the Person who is then Issuer hereunder in
connection with any transaction to which such Issuer is a party, such Issuer
shall cause the issuer of such securities to agree, effective as of such
conversion or exchange, that all rights, obligations and restrictions of Issuer
set forth in this Agreement shall continue to apply to such securities.  As of the time of such conversion or
exchange, such issuer shall be bound by this Agreement and shall succeed to all
rights, restrictions and obligations of Issuer set forth in this Agreement, all
references to Issuer herein shall thereafter be deemed to be references to such
issuer, and the predecessor Issuer shall be released from all obligations under
this Agreement except for any obligations under Section 8 with
respect to any registration of securities issued by such Issuer.  To evidence the foregoing, prior to the time
of such conversion or exchange, the Issuer may execute, and cause such issuer
to execute, a Succession Agreement setting forth such issuer’s obligations
pursuant to this Section 9. 
Upon request, the Manager shall

 

11

 

acknowledge and agree to
any such Succession Agreement as set forth therein.  To the extent required and permissible under applicable law, as
soon as reasonably practicable after such conversion or exchange, such issuer
shall file with the SEC an amendment to the Shelf Registration Statement, if
any, then in effect to ensure that such Shelf Registration Statement shall
continue to apply to such securities.

 

(b)           Termination.  All rights, restrictions and obligations of
Company and the Pension Plan, except with respect to any rights and obligations
under Section 8, shall terminate and this Agreement shall have no
further force and effect on the earlier of the date set forth in Section 2(c)
and the date the Pension Plan no longer holds any Registrable Securities.

 

(c)           Amendments and Waivers.  Except as otherwise provided herein, the
provisions of this Agreement may not be amended, modified or supplemented
except by a writing signed by Company and the Manager.

 

(d)           Notice.  Each notice relating to this Agreement shall
be in writing and shall be delivered in person, by overnight air carrier, by
registered or certified mail, by facsimile transmission or by telex, to the
parties at the following addresses (or at such other address for a party as
shall be specified by like notice, provided that notices of a change of address
shall be effective only upon receipt thereof):

 

If to Company:

 

Magnetek, Inc.

10900 Wilshire
Boulevard, Suite 850

Los Angeles,
California  90024

Attention:  Tina McKnight, Esq., General Counsel

Telecopy No.:  (310) 208-1322

 

with a copy to:

 

Gibson, Dunn &
Crutcher LLP

333 South Grand
Avenue

Los Angeles,
California  90071-3197

Attention:  Jennifer Bellah Maguire, Esq.

Telecopy No.:  (213) 229-7520

 

If to Manager:

 

U.S. Trust
Company, National Association

515 South Flower
Street, Suite 2700

Los Angeles,
California  90071-2291

Attention:  Charles E. Wert

Telecopy No.:  (213) 488-1366

 

12

 

with a copy to:

 

Jones, Day, Reavis
& Pogue

2727 North Harwood Street

Dallas, Texas  75201

Attention:  James E. O’Bannon, Esq.

Telecopy No.:  (214) 969-5100

 

Unless otherwise specifically provided in this
Agreement, a notice shall be deemed to have been effectively given if mailed by
registered or certified mail to the proper address (with such notice to be
effective upon the earlier of actual receipt or five days after deposit in the
mail), if given in person or by overnight air carrier when delivered in person
or by overnight air carrier, if given by telex or telecopy upon receipt if
confirmed by return telecopy, telex or telephonic confirmation or otherwise;
provided, however, that no notice shall be deemed received on a day that is not
a Business Day in the jurisdiction in which notices are to be addressed to such
party.  Any such notice shall not be
effective until the next Business Day in such jurisdiction.

 

(e)           Governing
Law.  This Agreement shall be
governed by, and construed and enforced in accordance with, the internal law,
and not the law pertaining to conflicts or choice of law, of the State of
Delaware.

 

(f)            Counterparts.  This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
shall constitute one and the same instrument.

 

(g)           Complete Agreement.  This Agreement contains the entire agreement
between the parties hereto with respect to the transactions contemplated herein
and supersedes all previous oral and written and all contemporaneous oral
negotiations, commitments and understandings.

 

(h)           Headings; Interpretation.  The headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.  No
party hereto, nor its respective counsel, shall be deemed the drafter of this
Agreement for purposes of construing the provisions hereof.  The language in all parts of this Agreement
shall in all cases be construed according to its fair meaning, and not strictly
for or against any party hereto.

 

(i)            Gender and Number.  In this Agreement, unless the context otherwise requires, the
masculine, feminine and neuter genders and the singular and the plural include
one another.

 

(j)            No Third-Party Beneficiaries.  This Agreement shall be for the sole and
exclusive benefit of the Company, the Pension Plan, the Trust, the Manager and
any other-investment manager or managers acting on behalf of the Pension Plan
with respect to the Registrable Securities, and their respective successors,
and directors, trustees, officers, employees, agents and controlling Persons
indemnified hereunder.  Nothing in this
agreement shall be construed to give any other Person any legal or equitable
right, remedy or claim under this Agreement.

 

13

 

(k)           Cooperation.  Each party hereto shall take such further
action, and execute such additional documents, as may be reasonably required by
any other party hereto in order to carry out the purposes of this Agreement.

 

(l)            Binding Effect; Assignment.  This Agreement shall be binding upon and
shall inure to the benefit of and be enforceable by each of the parties and
their successors and the directors, trustees (including, without limitation,
any successor trustee for the Pension Plan), officers, employees, agents and
controlling Persons of the parties. 
Except for an assignment to a successor trustee or to an investment
manager as stated herein, and except as contemplated in Section 9(a),
none of the rights or obligations under this Agreement shall be assigned by the
Pension Plan without the consent of the Company.

 

14

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed by their respective officers hereunto duly authorized,
as of the date first above written.

 

	
   

  	
  MAGNETEK,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ David P. Reiland

  	
   

  
	
   

  	
  Title:

  	
  Sr. Vice
  President & CFO

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S. TRUST
  COMPANY, NATIONAL ASSOCIATION, a national banking association, solely, in its
  capacity as duly appointed and acting investment manager of a segregated
  account held in the trust created under the MagneTek, Inc. FlexCare Plus
  Retirement Pension Plan

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Charles E. Wert

  	
   

  
	
   

  	
  Title:

  	
  Charles E. Wert

  	
   

  
	
   

  	
   

  	
  Executive Vice
  President and Senior Trust Officer

  	
   

  
						

 

15

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