Document:

bydesign8kx102_6242010.htm

EXHIBIT 10.2

FORM OF

STOCK SUBSCRIPTION AGREEMENT

STOCK SUBSCRIPTION AGREEMENT, dated as of June __, 2010 (the “Agreement”), by and between By Design, Inc., a Nevada corporation (the “Company”), and _________________, with an address at ___________________________________ (the “Investor”).

 

W I T N E S S E T H:

 

WHEREAS, the Investor desires to purchase from the Company, and the Company desires to sell and issue to the Investor, ________ shares (the “Shares”) of common stock, par value $0.001 per share, of the Company (“Common Stock”) upon the terms and conditions set forth in this Agreement; and

 

WHEREAS, in connection with the Investor’s purchase of the Shares, the Investor will receive certain rights to participate in future public offerings of Company stock, and will be subject to certain restrictions on the transfer of the Shares, all as more fully set forth in this Agreement;

 

NOW, THEREFORE, in consideration of the mutual terms, conditions and other agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto hereby agree to the sale and purchase of the Shares as set forth herein.

 

	
  

	
1.

	
Definitions.

 

For purposes of this Agreement, the terms set forth below shall have the corresponding meanings provided below.

 

“Affiliate” shall mean, with respect to any specified Person, (i) if such Person is an individual, the spouse, heirs, executors, or legal representatives of such individual, or any trusts for the benefit of such individual or such individual’s spouse and/or lineal descendants, or (ii) otherwise, another Person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the Person specified.  As used in this definition, “control” shall mean the possession, directly or indirectly, of the sole and unilateral power to cause the direction of the management and policies of a Person, whether through the ownership of voting securities or by contract or other written instrument.

 

“Business Day” shall mean any day on which banks located in New York City are not required or authorized by law to remain closed.

 

“Person” shall mean an individual, entity, corporation, partnership, association, limited liability company, limited liability partnership, joint-stock company, trust or unincorporated organization.

 

“Transfer” shall mean any sale, transfer, assignment, conveyance, charge, pledge, mortgage, encumbrance, hypothecation, security interest or other disposition, other than to an Affiliate, or to make or effect any of the above.

 

 

  

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“Underwriting Documents” shall mean an underwriting agreement in customary form and all other agreements and other documents reasonably requested by an underwriter in connection with an underwritten public offering of equity securities (including, without limitation, questionnaires, powers of attorney, indemnities, custody agreements and lock-up agreements).

 

	
  

	
2.

	
Sale and Purchase of Shares.

 

2.1.           Subscription for Shares by Investor.  Subject to the terms and conditions of this Agreement, the Investor hereby agrees to purchase the Shares from the Company, and the Company hereby agrees to issue and sell the Shares to the Investor, at a purchase price equal to $_____ per share, for a total purchase price of $________ (the “Consideration”).

 

2.2.           Closing; Deliveries.

 

(a)           The closing of the acquisition of the Shares (the “Closing”) shall take place at the offices of Greenberg Traurig, LLP, counsel to the Company, at 200 Park Avenue, 14th Floor, New York, New York 10166, or at such other place as the parties may mutually agree upon, at 10:00 a.m. on June __, 2010, or such other date and time on which the parties may mutually agree (the “Closing Date”).

 

(b)           At or promptly after the Closing, the Company shall deliver to the Investor, against delivery by the Investor of the Consideration (as provided below), a duly issued stock certificate representing the number of Shares purchased by the Investor.  The Consideration shall be paid by (i) certified check, or (ii) wire transfer of immediately available funds in accordance with wire transfer instructions which will be provided by the Company upon the Investor’s request.

 

	
  

	
3.

	
Representations, Warranties and Acknowledgments of the Investor.

 

The Investor hereby represents, warrants and acknowledges to the Company as to itself, as follows:

 

3.1.           Execution, Delivery and Performance.

 

The Investor has full right, power and authority to execute and deliver this Agreement and to perform its obligations hereunder and this Agreement has been duly authorized, executed and delivered by it and is valid, binding and enforceable against it in accordance with its terms.

 

3.2.           No Conflicts.

 

None of the execution, delivery and performance of this Agreement by the Investor will conflict with, or result in a breach of any terms or provisions of, or constitute a default under, any material contract, agreement or instrument to which the Investor is a party or by which the Investor is bound.

 

  

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3.3.           Investment Representations.

 

(a)           The Investor understands that the offering and sale of the Shares is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of the provisions of Section 4(2) of the Securities Act and Regulation D adopted thereunder (“Regulation D”).  The Investor is acquiring the Shares solely for purposes of investment and with no present intention to distribute such Shares.  The Investor is an “accredited investor,” as defined in Rule 501 of Regulation D, and it has such knowledge and experience in financial and business affairs as to be capable of evaluating the merits and risks of an investment in the Company pursuant to the terms of this Agreement.

 

(b)           The Investor understands that (i) the purchase of the Shares is a speculative investment which involves a high degree of risk of loss of such Investor's investment therein, (ii) there are substantial restrictions on the transferability of the Shares under the terms hereof and the provisions of the Securities Act and (iii) for an indefinite period following the Closing there will be no public market for the Shares and, accordingly, it may not be possible to liquidate its investment in the Company in case of emergency or otherwise.

 

3.4.           Access to Information; Reliance.

 

The Investor has been provided an opportunity to ask questions of, and has received answers thereto satisfactory to him from, the Company and its representatives concerning the Company and the Investor’s investment therein, and the Investor has been provided with such information as he has requested from the Company concerning the same.  The Investor has sought independent legal, investment and tax advice to the extent that he has deemed necessary or appropriate in connection with his decision to invest in the Company.

 

3.5.           Investor Information.

 

The information concerning the Investor herein is true and correct.  The Investor shall promptly notify the Company and provide the Company with corrected information should any information cease to be correct following the date hereof.

 

3.6.           Involvement in Certain Legal Proceedings.

 

The Investor:

 

(a)           has not filed or had filed against him a petition under the federal bankruptcy laws or any state insolvency law, or had a receiver, fiscal agent or similar officer appointed by a court for his business or property or any partnership, corporation or business association in which he was a general partner or executive officer at or within two years before the time of such filing;

 

(b)           has not been convicted in a criminal proceeding, and is not a named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);

 

(c)           has not been the subject of any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any federal or state authority or court of competent jurisdiction, permanently or temporarily barring, limiting or enjoining him from engaging in, or otherwise limiting his ability to engage in or be associated with any Person engaged in, any type of business practice, conduct or employment (including without limitation in connection with the purchase or sale of any security or commodity); and

 

  

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(d)           has not been found by a court of competent jurisdiction in a civil action or by the U.S. Securities and Exchange Commission (the "SEC") or the Commodity Futures Trading Commission to have violated any federal or state securities law or federal commodities law, and the judgment in such civil action or finding by such Commission has not been subsequently reversed, suspended, or vacated.

 

	
  

	
4.

	
Representations and Warranties of the Company.

 

The Company represents and warrants to the Investor, as follows:

 

4.1.           Execution, Delivery and Performance.

 

The Company has the corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder.  This Agreement has been duly authorized, executed and delivered by the Company and is valid, binding and enforceable against the Company in accordance with its terms.

 

4.2.           Shares Duly Authorized.

 

The Shares to be issued to the Investor pursuant to this Agreement, when issued and delivered in accordance with the terms of this Agreement, will be duly and validly issued and will be fully paid and nonassessable.

 

4.3.           No Conflicts.

 

None of the execution, delivery and performance of this Agreement by the Company will conflict with the Company's Articles of Incorporation or By-laws, as amended to date, or result in a breach of any terms or provisions of, or constitute a default under, any material contract, agreement or instrument to which the Company is a party or by which the Company is bound.

 

4.4.           Capitalization.

 

(a)           As of the date hereof, the authorized capital stock of the Company consists of (i) 50,000,000 shares of Common Stock, of which 9,197,802 shares are issued and outstanding, and (ii) 1,000,000 shares of preferred stock, par value $0.01 per share, of which no shares are issued and outstanding.  As a result of the transactions contemplated hereby and similar transactions, the authorized capital stock of the Company will consist of (A) 50,000,000 shares of Common Stock, of which all 50,000,000 shares will be issued and outstanding, and (B) 1,000,000 shares of preferred stock, par value $0.01 per share, of which no shares will be issued and outstanding.

 

  

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5.

	
Registration Rights.

 

5.1.           Participation in Registrations.

 

Subject to Section 6.2 and the other provisions of this Section 5, if, at any time following the date hereof, the Company shall determine to register any Common Stock pursuant to the Securities Act, the Company will use its best efforts to include in such registration such number of Shares as it reasonably believes (or, if such offering shall be an underwritten public offering of securities, as the underwriter (the "Underwriter") advises the Company in writing) can be sold in such offering without adversely affecting its (or the Underwriter's) ability to effect an orderly distribution of such securities (the “Registrable Shares”).

 

5.2.           Underwritten Offerings.

 

In the event a registration giving rise to an Investor’s rights pursuant to Section 5.1 relates to an underwritten offering of securities, an Investor’s right to registration pursuant to Section 5.1 shall be conditioned upon its (a) participation in such underwriting, (b) inclusion of the Registrable Shares therein and (c) execution of all Underwriting Documents requested by the Underwriter with respect thereto.  In the event the Underwriter determines that the aggregate number of shares proposed for inclusion in such offering (the “Aggregate Amount”) exceeds the number of shares that it would be advisable to include in such offering (the “Recommended Amount”), the number of Registrable Shares may be reduced on a pro rata basis by the Company to the extent necessary to bring the Aggregate Amount down to the Recommended Amount.

 

5.3.           Expenses.

 

The Company shall bear all of the expenses incurred in connection with an offering of the type described in this Section 5, including, without limitation, SEC filing fees and the fees (up to a maximum aggregate amount of $5,000) of separate counsel retained with respect thereto by the Investor.

 

5.4.           Indemnification.

 

The Company and the Investor will indemnify the other parties hereto against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any prospectus or other document (including any related registration statement, notification or the like) incident to any registration of the type described in Section 5.1, or any omission (or alleged omission) to state in any such document a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse such indemnified party for any legal and any other expenses reasonably incurred in connection with investigating and defending any such claim, loss, damage, liability or action, provided that no party will be eligible for indemnification hereunder to the extent that any such claim, loss, damage, liability or expense arises out of or is based on any untrue statement or omission based upon written information furnished by such party for use in connection with such registration.

 

  

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5.5.           Cooperation by Holder.

 

The Investor shall furnish to the Company or the Underwriter, as applicable, such information regarding the Investor and the distribution proposed by him as the Company may reasonably request in connection with any registration or offering referred to in this Section 5.  The Investor shall cooperate as reasonably requested by the Company in connection with the preparation of the registration statement with respect to such registration, and for so long as the Company is obligated to file and keep effective such registration statement, shall provide to the Company, in writing, for use in the registration statement, all such information regarding the Investor and his plan of distribution of the Shares included in such registration as may be reasonably necessary to enable the Company to prepare such registration statement, to maintain the currency and effectiveness thereof and otherwise to comply with all applicable requirements of law in connection therewith.

 

5.6.           Excluded Offerings.

 

An Investor’s rights pursuant to Section 5.1 shall not apply to any registrations on any registration form which does not permit secondary sales or does not include substantially the same information as would be required to be included in a registration statement covering the offering and sale of the Shares.  Moreover, the rights described in Section 5.1 shall not be available to the Investor if, in the opinion of counsel to the Company, all of the Shares then held by the Investor could be sold without registration in a transaction complying with Rule 144 under the Securities Act.

 

	
  

	
6.

	
Transfer Restrictions.

 

6.1.           Securities Act Restrictions.

 

Notwithstanding anything to the contrary in this Agreement, the Investor shall not Transfer any of the Shares unless and until (a) the Company has received an opinion of counsel reasonably satisfactory to it that the Shares may be sold pursuant to an exemption from registration under the Securities Act, the availability of which is established to the reasonable satisfaction of the Company, or (b) a registration statement relating to the Shares has been filed by the Company and declared effective by the SEC.

 

6.2.           Restrictions in Connection with Underwritten Offerings.

 

Notwithstanding anything to the contrary in this Agreement, the Investor shall not Transfer any of the Shares for such time before or following the effective date of a registration statement with respect to a public offering of securities of the Company as shall be reasonably requested by an underwriter of such securities and agreed to by the Company.

 

6.3.           Non-Compliant Transfers.

 

Any Transfer or purported Transfer of Shares made in violation of the provisions of this Section 6 shall be null and void and without effect.

 

	
  

	
7.

	
Conditions to Closing of the Investor.

 

The obligations of the Investor to effect the transactions contemplated by this Agreement are subject to the fulfillment at or prior to the Closing Date of the conditions listed below.

 

  

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7.1.           Representations and Warranties.

 

The representations and warranties made by the Company in Section 4 shall be true and correct in all material respects at the time of Closing as if made on and as of such date.

 

7.2.           Approvals.

 

All authorizations, approvals or permits, if any, of any governmental authority or regulatory body that are required in connection with the lawful issuance of the Shares by the Company pursuant to this Agreement, shall have been duly obtained by the Company and shall be effective on and as of the Closing Date.

 

7.3.           Corporate Proceedings.

 

All corporate and other proceedings required to be undertaken by the Company in connection with the transactions contemplated hereby shall have occurred, and all documents and instruments incident to such proceedings shall be reasonably satisfactory in substance and form to the Investor.

 

	
  

	
8.

	
Conditions to Closing of the Company.

 

The obligations of the Company to effect the transactions contemplated by this Agreement are subject to the fulfillment at or prior to the Closing Date of the conditions listed below.

 

8.1.           Representations and Warranties.

 

The representations and warranties made by the Investor in Section 3 shall be true and correct in all material respects at the time of Closing as if made on and as of such date.

 

8.2.           Corporate Proceedings.

 

All corporate and other proceedings required to be undertaken by the Investor in connection with the transactions contemplated hereby shall have occurred, and all documents and instruments incident to such proceedings shall be reasonably satisfactory in substance and form to the Company.

 

9.           Amendment to Articles of Incorporation.

 

The parties hereto covenant and agree that, as soon as practicable following the execution of this Agreement, the Board of Directors of the Company shall propose (subject to approval of the stockholders of the Company), and the Investor hereby approves, an amendment to the Company's Articles of Incorporation to increase the number of authorized shares of Common Stock from 50,000,000 shares to 500,000,000 shares and to change the corporate name of the Company.

 

  

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10.

	
Miscellaneous.

 

10.1.           Restrictive Legend.

 

(a)           Each of the certificates representing the Shares shall bear a legend containing a disclosure statement in substantially the following form:

 

The securities represented by this certificate (the “Shares”) have not been registered under the Securities Act of 1933, as amended (the “Securities Act”).  The Shares may not be offered for sale, sold, transferred or otherwise disposed of except pursuant to (a) an effective registration statement under the Securities Act or (b) an exemption from registration under the Securities Act, which exemption is confirmed in an opinion of counsel satisfactory to the Company.

 

(b)           Any holder of Shares registered pursuant to the Securities Act and qualified under applicable state securities laws may exchange such Shares for new securities that shall bear a legend which omits the first two sentences of the legend set forth in paragraph (a) of this Section 10.1.

 

10.2.           Notices.

 

All notices, requests, demands and other communications provided in connection with this Agreement shall be in writing and shall be deemed to have been duly given at the time when hand delivered, delivered by express courier, or sent by facsimile (with receipt confirmed by the sender’s transmitting device) in accordance with the contact information provided below or such other contact information as the parties may have duly provided by notice.

 

The Company:

	
__________________

__________________

__________________

Telephone:  (860) 604-5892

Facsimile:  _____________

Attention:  Mr. Gary S. Ohlbaum

President and Chief

                 Executive Officer

	
With a copy to:

	
Greenberg Traurig, LLP

MetLife Building

200 Park Avenue, 15th Floor

New York, New York  10166

Telephone:  (212) 801-9200

Facsimile:   (212) 801-6400

Attention:  Spencer G. Feldman, Esq.

 

The Investor:

 

As per the contact information provided on the signature page hereof.

 

10.3.           Survival of Representations and Warranties.

 

Each party hereto covenants and agrees that the representations and warranties of such party contained in this Agreement shall survive (i) any investigation made by the Company or the Investor and (ii) the Closing.

 

 

  

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10.4.           Entire Agreement.

 

This Agreement contains the entire agreement between the parties hereto in respect of the subject matter contained herein and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter contained herein.

 

10.5.           Assignment.

 

This Agreement, and the rights and obligations of a party hereunder, may not be assigned or Transferred by the Investor without the prior written consent of the Company.

 

10.6.           Binding Effect; Benefits.

 

This Agreement and all the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns; nothing in this Agreement, expressed or implied, is intended to confer on any persons other than the parties hereto, or their respective successors and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 

10.7.           Amendment; Waivers.

 

All modifications or amendments to this Agreement shall require the written consent of the Company and the Investor.  No waiver of any breach, noncompliance or nonfulfillment of any of the provisions of this Agreement shall be effective unless set forth in a written instrument executed by the party against whom such waiver is sought; and no waiver of any such breach, noncompliance or nonfulfillment shall be construed to be a waiver of any other or subsequent breach, noncompliance or nonfulfillment.

 

10.8.           Applicable Law; Disputes.

 

This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, U.S.A., without giving effect to the conflict of law provisions thereof.  In the event there is any dispute between the parties as to their rights and obligations under this Agreement, the parties submit to the jurisdiction of any state or federal court sitting in the State of Nevada (the Company's state of incorporation), City of Las Vegas, and waive any defense of inconvenient forum to the maintenance of any action so brought.

 

10.9.           Further Assurances.

 

Each party hereto shall do and perform or cause to be done and performed all such further acts, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

10.10.           Counterparts.

 

This Agreement may be executed by fax or .pdf and in counterparts.

 

 

  

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IN WITNESS WHEREOF, each of the Company and the Investor has caused this Agreement to be executed as of the date first written above.

 

 

	
THE INVESTOR:

	
THE COMPANY:

	  	  
	  	
BY DESIGN, INC.

	  	  
	  	  
	
By:_________________________________

	
By:_____________________________

	
Name:

	
      Gary S. Ohlbaum

	
Title:

	
      President and Chief Executive Officer

 

 

  Contact Information:

 

 

- 10 -Exhibit 10.1

 

EXECUTION COPY

[Triumph]

 

THIRD
AMENDMENT TO RECEIVABLES PURCHASE AGREEMENT

 

This THIRD AMENDMENT (this “Amendment”),
dated as of June 21, 2010, is among TRIUMPH RECEIVABLES, LLC, a Delaware
limited liability company, as seller (the “Seller”), TRIUMPH GROUP, INC.,
a Delaware corporation, as servicer (in such capacity, together with its
successors and permitted assigns in such capacity, the “Servicer”),
MARKET STREET FUNDING LLC, a Delaware limited liability company (“Market
Street”), as a related committed purchaser and as a conduit purchaser (in
such capacities, together with its successors and permitted assigns in such
capacities, the “Purchaser”), and PNC BANK, NATIONAL ASSOCIATION, a
national banking association, as purchaser agent for Market Street’s purchaser
group (in such capacity, together with its successors and permitted assigns in
such capacity, the “Purchaser Agent”) and as administrator (in such
capacity, together with its successors and permitted assigns in such capacity,
the “Administrator”).  Capitalized
terms used but not otherwise defined herein have the respective meanings
assigned thereto in the Agreement (as defined below).

 

RECITALS

 

1.             The Seller, the Servicer, the Purchaser, the Purchaser
Agent and the Administrator are parties to the Receivables Purchase Agreement,
dated as of August 7, 2008 (as amended, restated, supplemented or
otherwise modified through the date hereof, the “Agreement”).

 

2.             Concurrently herewith and pursuant to that certain
Joinder Agreement, dated as of the date hereof, Contour Aerospace Corporation (“Contour”),
is becoming a party to the Sale Agreement, as an Originator thereunder (the “ Contour
Joinder”).

 

3.             Concurrently herewith and pursuant to that certain
Joinder Agreement, dated as of the date hereof, Triumph Structures — East Texas, Inc.
(“East Texas”), is becoming a party to the Sale Agreement, as an
Originator thereunder (the “East Texas Joinder”).

 

4.             Concurrently herewith and pursuant to that certain
Joinder Agreement, dated as of the date hereof, Triumph Insulation Systems, LLC
(“Insulation”), is becoming a party to the Sale Agreement, as an
Originator thereunder (the “Insulation Joinder”).

 

5.             Concurrently herewith and pursuant to that certain
Joinder Agreement, dated as of the date hereof, Triumph Fabrications —
Orangeburg, Inc. (“Orangeburg”), is becoming a party to the Sale
Agreement, as an Originator thereunder (the “Orangeburg Joinder”).

 

6.             Concurrently herewith and pursuant to that certain
Joinder Agreement, dated as of the date hereof, Triumph Fabrications — St.
Louis, Inc. (“St. Louis” and together with Contour, East Texas, Insulation
and Orangeburg, collectively, the “New Originators”), is becoming a
party to the Sale Agreement, as an Originator thereunder (the “St. Louis
Joinder” and together with the Contour Joinder, the East Texas Joinder, the
Insulation Joinder and the Orangeburg Joinder, collectively, the “Joinder
Agreements”).

 

7.             Concurrently herewith, the parties hereto are entering
into a Third Amended and Restated Purchaser Group Fee Letter (the “A&R
Fee Letter”).

 

 

8.             Concurrently herewith, the Servicer, the Seller, the New
Originators and the existing Originators are entering into a First Amendment to
Purchase and Sale Agreement (the “PSA Amendment”).

 

9.             Concurrently herewith, a UCC-1 financing statement is
being filed with the Secretary of State of the State of Delaware naming Contour
as debtor/seller, Seller as buyer/assignor and the Administrator as secured
party/assignee which includes the Receivables and Related Security in the
collateral description thereof  (the “Contour
Filing”).

 

10.           The Seller, the Servicer, the Purchaser, the Purchaser
Agent and the Administrator desire to amend the Agreement as hereinafter set
forth.

 

NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

 

SECTION 1.  Amendments to
the Agreement.  The Agreement is
hereby amended as follows:

 

1.1  The definition of “Concentration
Percentage” set forth in Exhibit I to the Agreement is amended
as follows:

 

(a)           Clause
(a) thereof is amended by replacing the percentage “25%” where it
appears therein with the percentage “30%”.

 

(b)           Clause (e) thereof
is replaced in its entirety with the following: “(e) for any Group D
Obligor other than any Spirit Special Obligor, 5%, and for any Spirit Special
Obligor, 6%;”.

 

1.2  The definition of “Eligible
Receivable” set forth in Exhibit I to the Agreement is amended
as follows:

 

(a)           Clause
(b) thereof is amended by (x) inserting “(i)” at the beginning of
such clause and (y) inserting “(ii)” immediately prior to the phrase “the
Obligor” where such phrase appears therein.

 

(b)           Clause
(k) thereof is amended by (x) inserting “(i)” immediately prior
to the phrase “a valid and enforceable” where such phrase appears in the first
instance therein and (y) inserting “(ii)” immediately prior to the phrase “a
valid and enforceable” where such phrase appears in the second instance
therein.

 

1.3  The definition of “Excess
Concentration” set forth in Exhibit I to the Agreement is
amended as follows:

 

(a)           Clause
(iv) thereof is amended by replacing the percentage “3.5%” where it
appears therein with the percentage “5.0%”.

 

(b)           Clause
(v) thereof is amended by replacing the percentage “30%” where it
appears therein with the percentage “50%”.

 

2

 

(c)           Clause
(vi) thereof is amended by replacing the percentage “7.5%” where it
appears therein with the percentage “12.5%”.

 

(d)           Clause
(vii) thereof is amended by replacing the percentage “5%” where it
appears therein with the percentage “10%”.

 

1.4  The definition of “Purchase
Limit” set forth in Exhibit I to the Agreement is amended by
replacing the amount “$125,000,000” where it appears therein with the amount “$175,000,000”.

 

1.5  Clause (ii) of
the definition of “Special Obligor” set forth in Exhibit I
to the Agreement is amended by (a) replacing the percentage “50%” where it
appears therein with the percentage “30%” and (b) replacing the term “Defaulted
Receivables” where it appears therein with the term “Delinquent Receivables”.

 

1.6  The definition of “Weighted
Average Credit Terms” set forth in Exhibit I to the Agreement
is replaced in its entirety with the following:

 

“Weighted Average Credit Terms” means, for any calendar month,
the weighted average of the stated maturities of all Receivables in the
Receivables Pool during such calendar month, determined pursuant to the
following formula (and rounded to the nearest 1/10,000): the product of 30, times
the sum of (a)(I) one times (II) (x) the aggregate
Outstanding Balance of all Receivables in the Receivables Pool with stated
maturities which are less than or equal to 30 days after the original invoice
date of such Receivable, divided  by (y) the aggregate
Outstanding Balance of all Receivables in the Receivables Pool, plus (b)(I) two
times (II) (x) the aggregate Outstanding Balance of all
Receivables in the Receivables Pool with stated maturities which are more than
30 days but less than or equal to 60 days after the original invoice date of
such Receivable, divided  by (y) the aggregate Outstanding
Balance of all Receivables in the Receivables Pool, plus (c)(I) three
times (II) (x) the aggregate Outstanding Balance of all
Receivables in the Receivables Pool with stated maturities which are more than
60 days but less than or equal to 90 days after the original invoice date of
such Receivable, divided  by (y) the aggregate Outstanding
Balance of all Receivables in the Receivables Pool; provided, however,
that the following amounts shall be excluded from the forgoing computation (i) the
amount by which the aggregate Outstanding Balance of all Receivables then in
the Receivables Pool with stated maturities which are more than 90 days, (ii) the
amount by which the aggregate Outstanding Balance of all Receivables then in
the Receivables Pool with stated maturities which are more than 30 days but
less than or equal to 60 days after the original invoice date of such
Receivable exceeds 50% of the aggregate Outstanding Balance of all Receivables
then in the Receivables Pool,  (iii) the
amount by which the aggregate Outstanding Balance of all Receivables then in
the Receivables Pool with stated maturities which are more than 60 days but
less than or equal to 90 days after the original invoice date of such
Receivable exceeds 12.5% of the aggregate Outstanding Balance of all
Receivables then in the Receivables Pool and (iv) the aggregate
Outstanding Balance of all Receivables then in the Receivables Pool which are
Delinquent Receivables.

 

3

 

1.7  The following new definition
is hereby added to Exhibit I as alphabetically appropriate:

 

“Spirit Special Obligor” means Spirit AeroSystems Holdings, Inc.
or any Affiliate thereof, only for so long as less than 30% of the aggregate
Outstanding Balance of all Receivables the Obligor of which is Spirit
AeroSystems Holdings, Inc. or any Affiliate thereof, constitute Delinquent
Receivables (it being understood and agreed that if at any time the condition
set forth above is not satisfied, each such Person shall no longer be a Spirit
Special Obligor).

 

1.8  Section 6.7 of
the Agreement is hereby amended by (a) inserting the phrase “; provided,
further, that this Agreement and the other Transaction Documents may be
disclosed to any nationally recognized statistical rating organization”
immediately following the phrase “hold it confidential” in clause (b) thereof
and (b) inserting the phrase “or any nationally recognized statistical
rating organization” immediately following the phrase “Conduit Purchaser” in clause
(iii) thereof.

 

1.9  The following new Section 6.17
is hereby added to the Agreement immediately following existing Section 6.16
thereof:

 

Section 6.17    Payments
to Non-Lock-Box Accounts; Supplemental Eligibility Criteria.     (a)  
Notwithstanding anything to the contrary set forth in this Agreement or
the Sale Agreement, to the extent that any payments with respect to any Pool
Receivables (including any Collections or other proceeds of such Pool
Receivables) which were originated by Contour Aerospace Corporation (“Contour”),
in its capacity as an Originator under the Sale Agreement (the “Contour
Receivables”), are directed by or on behalf of Contour to be, and
thereafter are, credited to or deposited into any account or lock-box listed on
Schedule V, so long as such account or lock-box is not a Lock-Box
Account (such accounts and lock-boxes, collectively, the “Non-Lock-Box
Accounts”), the Administrator, each Purchaser and each Purchaser Agent
hereby agree that no Termination Event, Unmatured Termination Event or Purchase
and Sale Termination Event shall occur resulting solely from the credit to or
deposit into a Non-Lock-Box Account of any such amounts until August 20,
2010.  The temporary waiver provided for
in this Section 6.17 solely with respect to the Non-Lock-Box
Accounts shall automatically terminate on August 20, 2010 without any
required action on the part of any Person and thereafter Contour, the Seller
and the Servicer must comply with the terms of the Transaction Documents with
respect to all such amounts as of and on such day and without any grace period
(including, without limitation, any grace period set forth in Exhibit V).

 

(b)           So long as all
payments with respect to each Contour Receivable (including any Collections or
other proceeds of each such Contour Receivable) are directed to a Non-Lock-Box
Account in accordance with Section 6.17(a), until August 20,
2010, each such Contour Receivable shall be an Eligible Receivable so long as
such Contour Receivable otherwise complies with the definition of “Eligible
Receivable” set forth in Exhibit I of this Agreement (other than
with respect to the following clauses thereof: (x) clause (b)(ii), (y) clause
(j) solely 

 

4

 

with
respect to the representations and warranties set forth in Sections 3(b)(ii) and
(iii) and Section 3(c)(iii) of Exhibit III,
which are incorporated into such clause (j) by reference, and (z) clause
(k)(ii) solely to the extent that the Non-Lock-Box Accounts do not
constitute Related Security).

 

1.10  Schedule II to the
Agreement is replaced by Schedule II attached hereto.

 

1.11  Schedule V attached
hereto is added to the agreement as Schedule V thereof.

 

SECTION 2.    Waiver and
Consent.

 

The parties hereto hereby
waive the requirement, pursuant to Section 1.12 of the Agreement,
that they receive at least 90 days prior written notice of the decision by the
Liquidity Providers under the Liquidity Agreement related to the Conduit
Purchaser in such Purchaser Agent’s Purchaser Group regarding the extension of
the then current scheduled commitment expiration date under such Liquidity
Agreement.

 

SECTION 3.  Conditions to
Effectiveness.

 

This Amendment shall become
effective as of the date hereof, provided that neither the Facility Termination
Date nor a Termination Event or Unmatured Termination Event has occurred and
subject to the condition precedent that the Administrator shall have received (i) the
Structuring Fee (as defined in the A&R Fee Letter) and (ii) each of
the following, each duly executed and dated as of the date hereof (or such
other date satisfactory to the Administrator), in form and substance
satisfactory to the Administrator:

 

(a)           counterparts
of this Amendment (whether by facsimile or otherwise) executed by each of the
parties hereto;

 

(b)           counterparts
of each Joinder Agreement, the A&R Fee Letter and the PSA Amendment
(whether by facsimile or otherwise), in each case, executed by each of the
parties thereto;

 

(c)           opinions
of counsel, at Ballard Spahr LLP, counsel to the Seller and each New
Originator, regarding certain corporate, enforceability, security interests and
bankruptcy matters; and

 

(d)           such
other documents, agreements, opinions and instruments as the Administrator may
reasonably request prior to delivery by Administrator of an executed
counterpart of this Amendment.

 

SECTION 4.  Representations
and Warranties; Covenants.

 

Each of the Seller and the
Servicer, as applicable, hereby represents and warrants to the Purchaser, the
Purchaser Agent and the Administrator as follows:

 

(a)           Representations
and Warranties.  The representations
and warranties contained in Exhibit III of the Agreement are true
and correct as of the date hereof 

 

5

 

(unless stated to relate solely to an earlier date, in which case such
representations or warranties were true and correct as of such earlier date).

 

(b)           Enforceability.  The execution and delivery by each of the Seller
and the Servicer of this Amendment, and the performance of each of its
obligations under this Amendment and the Agreement, as amended hereby, are
within each of its organizational powers and have been duly authorized by all
necessary action on each of its parts. 
This Amendment and the Agreement, as amended hereby, are each of the
Seller’s and the Servicer’s valid and legally binding obligations, enforceable
in accordance with its terms.

 

(c)           No
Default.  Immediately after giving
effect to this Amendment and the transactions contemplated hereby, no
Termination Event or Unmatured Termination Event exists or shall exist.

 

SECTION 5.  Certain
Covenants Regarding Post-Closing Conditions.

 

(a)           On
or prior to fifteen (15) Business Days following the effectiveness of the
change of the name of Contour (the “Post-Closing Date”), the Seller and
the Servicer shall deliver (or cause to be delivered) evidence, reasonably
satisfactory to the Administrator, of the effective filing of each of (i) a
UCC-1 financing statement with the Secretary of State of the State of Delaware
naming Triumph Structures — Everett, Inc. (“Everett”) as
debtor/seller, Seller as buyer/assignor and the Administrator as secured
party/assignee including the Receivables and Related Security in the collateral
description thereof  (the “Everett
Filing”) and (ii) a UCC-3 amendment to the Contour Filing with the
Secretary of State of the State of Delaware amending the name of the
debtor/seller from “Contour Aerospace Corporation” to “Triumph Structures —
Everett, Inc.” (the “Everett Amendment”)

 

(b)           On
or prior to the Post-Closing Date, the Seller and the Servicer shall cause to
be delivered a favorable opinion from Ballard Spahr LLP, addressed to the
Administrator, each Purchaser, each Purchaser Agent and each Liquidity Provider
in form and substance satisfactory to the Administrator, covering certain UCC
perfection and priority matters with respect to Everett, the Everett Filing and
the Everett Amendment as the Administrator may reasonably request.

 

(c)           Notwithstanding
anything to the contrary in the Transaction Documents, the failure of the
Seller or the Servicer to timely perform either of their covenants under Sections
5(a) or 5(b) above shall constitute a Termination Event
under the Agreement with no grace period.

 

(d)           On or prior to five (5) Business
days following the effectiveness of this Amendment, the Seller and the Servicer
shall cause to be delivered termination statements terminating those UCC-1
financing statements listed on Exhibit A attached hereto.  Notwithstanding anything to the contrary in
the Transaction Documents, the failure of the Seller or the Servicer to timely
perform this covenant shall constitute a Termination Event under the Agreement
with no grace period.

 

6

 

SECTION 6.  Effect of
Amendment; Ratification.  Except as
specifically amended hereby, the Agreement is hereby ratified and confirmed in
all respects, and all of its provisions shall remain in full force and
effect.  After this Amendment becomes
effective, all references in the Agreement (or in any other Transaction
Document) to “the Receivables Purchase Agreement”, “this Agreement”, “hereof”, “herein”,
or words of similar effect, in each case referring to the Agreement, shall be
deemed to be references to the Agreement as amended hereby.  This Amendment shall not be deemed to
expressly or impliedly waive, amend, or supplement any provision of the
Agreement other than as specifically set forth herein.

 

SECTION 7.  Counterparts.  This Amendment may be executed in any number
of counterparts and by different parties on separate counterparts, and each
counterpart shall be deemed to be an original, and all such counterparts shall
together constitute but one and the same instrument.

 

SECTION 8.  Governing Law.  This Amendment shall be governed by, and
construed in accordance with, the internal laws of the State of New York
without regard to any otherwise applicable conflicts of law principles (other
than Sections 5-1401 and 5-1402 of the New York General Obligations Law).

 

SECTION 9.  Section Headings.  The various headings of this Amendment are
inserted for convenience only and shall not affect the meaning or
interpretation of this Amendment or the Agreement or any provision hereof or
thereof.

 

SECTION 10.  Successors
and Assigns.  This Amendment shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective successors and assigns.

 

[SIGNATURE
PAGES TO FOLLOW]

 

7

 

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

 

	
   

  	
  TRIUMPH RECEIVABLES, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  
	
   

  	
  Name:

  	
  M. David Kornblatt

  
	
   

  	
  Title: 

  	
  Senior Vice President,
  Chief Financial Officer 

  
	
   

  	
  and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TRIUMPH GROUP, INC.,
  in its individual capacity 

  and as Servicer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  
	
   

  	
  Name:

  	
  M. David Kornblatt

  
	
   

  	
  Title: 

  	
  Senior Vice President,
  Chief Financial Officer 

  
	
   

  	
  and Treasurer

  

 

RPA Amendment #3

 

S-1

 

	
   

  	
  MARKET STREET FUNDING LLC,
  as a Related

  Committed Purchaser and as a Conduit Purchaser

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  
	
   

  	
  Name:

  	
  Doris J. Hearn

  
	
   

  	
  Title: 

  	
  Vice President

  

 

RPA
Amendment #3

 

S-2

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as Administrator and as
  Purchaser Agent for the

  Market Street Purchaser Group

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  
	
   

  	
  Name:

  	
  William P. Falcon

  
	
   

  	
  Title: 

  	
  Vice President

  

 

RPA Amendment #3

 

S-3

 

SCHEDULE
II

LOCK-BOX BANKS AND LOCK-BOX ACCOUNTS

 

Bank Accounts

 

	
  Financial Institutions

  	
   

  	
  Account
  Numbers

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  PNC
  Bank, National Association

  	
   

  	
  1019796242

  	
   

  
	
   

  	
   

  	
  1008436997

  	
   

  
	
   

  	
   

  	
  1017284745

  	
   

  
	
   

  	
   

  	
  1014305328

  	
   

  
	
   

  	
   

  	
  1006153766

  	
   

  
	
   

  	
   

  	
  1019793738

  	
   

  
	
   

  	
   

  	
  1008990779

  	
   

  
	
   

  	
   

  	
  1011555508

  	
   

  
	
   

  	
   

  	
  1017288463

  	
   

  
	
   

  	
   

  	
  1002431685

  	
   

  
	
   

  	
   

  	
  1005590155

  	
   

  
	
   

  	
   

  	
  1010934071

  	
   

  
	
   

  	
   

  	
  1001348265

  	
   

  
	
   

  	
   

  	
  1011555487

  	
   

  
	
   

  	
   

  	
  1008988599

  	
   

  
	
   

  	
   

  	
  1008997858

  	
   

  
	
   

  	
   

  	
  1017305032

  	
   

  
	
   

  	
   

  	
  1001348222

  	
   

  
	
   

  	
   

  	
  1004386515

  	
   

  
	
   

  	
   

  	
  1019294584

  	
   

  
	
   

  	
   

  	
  1008371679

  	
   

  
	
   

  	
   

  	
  1008373383

  	
   

  
	
   

  	
   

  	
  1008373391

  	
   

  
	
   

  	
   

  	
  1019817453

  	
   

  
	
   

  	
   

  	
  1005589656

  	
   

  
	
   

  	
   

  	
  1019293506

  	
   

  
	
   

  	
   

  	
  1017294353

  	
   

  
	
   

  	
   

  	
  1001738669

  	
   

  
	
   

  	
   

  	
  1001738685

  	
   

  
	
   

  	
   

  	
  1001738634

  	
   

  
	
   

  	
   

  	
  1001738677

  	
   

  
	
   

  	
   

  	
  1019839062

  	
   

  
	
   

  	
   

  	
  1019839855

  	
   

  
	
   

  	
   

  	
  1028875487

  	
   

  
	
   

  	
   

  	
  1028887509

  	
   

  

 

1

 

Post
Office Boxes

 

	
  Address

  	
   

  	
  Location

  
	
   

  	
   

  	
   

  
	
  676035

  	
   

  	
  Dallas, TX 75267-6035

  
	
  642454

  	
   

  	
  Pittsburgh, PA 15264

  
	
  643389

  	
   

  	
  Pittsburgh, PA 15264

  
	
  643247

  	
   

  	
  Pittsburgh, PA 15264

  
	
  642117

  	
   

  	
  Pittsburgh, PA 15264

  
	
  644148

  	
   

  	
  Pittsburgh, PA 15264

  
	
  828546

  	
   

  	
  Philadelphia, PA 19182-8546

  
	
  642807

  	
   

  	
  Pittsburgh, PA 15264

  
	
  643440

  	
   

  	
  Pittsburgh, PA 15264

  
	
  640739

  	
   

  	
  Pittsburgh, PA 15264

  
	
  642097

  	
   

  	
  Pittsburgh, PA 15264

  
	
  641592

  	
   

  	
  Pittsburgh, PA 15264

  
	
  640080

  	
   

  	
  Pittsburgh, PA 15264

  
	
  642815

  	
   

  	
  Pittsburgh, PA 15264

  
	
  910423

  	
   

  	
  Pasadena, CA 91110-0423

  
	
  642804

  	
   

  	
  Pittsburgh, PA 15264

  
	
  643577

  	
   

  	
  Pittsburgh, PA 15264

  
	
  640216

  	
   

  	
  Pittsburgh, PA 15264

  
	
  641868

  	
   

  	
  Pittsburgh, PA 15264

  
	
  643917

  	
   

  	
  Pittsburgh, PA 15264

  
	
  642323

  	
   

  	
  Pittsburgh, PA 15264

  
	
  642229

  	
   

  	
  Pittsburgh, PA 15264

  
	
  642244

  	
   

  	
  Pittsburgh, PA 15264

  
	
  644384

  	
   

  	
  Pittsburgh, PA 15264

  
	
  641978

  	
   

  	
  Pittsburgh, PA 15264

  
	
  643901

  	
   

  	
  Pittsburgh, PA 15264

  
	
  643466

  	
   

  	
  Pittsburgh, PA 15264

  
	
  640941

  	
   

  	
  Pittsburgh, PA 15264

  
	
  641458

  	
   

  	
  Pittsburgh, PA 15264

  
	
  640505

  	
   

  	
  Pittsburgh, PA 15264

  
	
  641035

  	
   

  	
  Pittsburgh, PA 15264

  
	
  644528

  	
   

  	
  Pittsburgh, PA 15264

  
	
  644536

  	
   

  	
  Pittsburgh, PA 15264

  
	
  644645

  	
   

  	
  Pittsburgh, PA 15264

  
	
  644683

  	
   

  	
  Pittsburgh, PA 15264

  

 

2

 

SCHEDULE
V

NON-LOCKBOX ACCOUNTS

 

Bank
Accounts

 

	
  Financial Institutions

  	
   

  	
  Account Numbers

  
	
   

  	
   

  	
   

  
	
  Wells Fargo Bank, National
  Association

  	
   

  	
  4121140834

  

 

Post
Office Boxes

 

	
  Address

  	
   

  	
  Location

  
	
   

  	
   

  	
   

  
	
  201757

  	
   

  	
  Dallas, TX 75320-1757

  

 

1

 

EXHIBIT A

UCC-1 FINANCING STATEMENTS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]