Document:

EXHIBIT 10.2

 

CONSULTING AGREEMENT

 

This CONSULTING AGREEMENT,
dated as of September 28, 2009 (this “Agreement”), is hereby made by and
between Blount International, Inc., a Delaware corporation (the “Corporation”),
and James S. Osterman (the “Executive”).

 

WHEREAS, the Executive is
serving as Chairman and Chief Executive Officer of the Corporation pursuant to
the terms of an Amended And Restated Employment Agreement, dated as of October 17,
2007, as amended (the “Employment Agreement”); and

 

WHEREAS, the Term of the
Employment Agreement ends on January 3, 2010 and after the end of the
Term, the Employment Agreement provides that Executive will continue to provide
certain consulting services to the Corporation; and

 

WHEREAS, the Corporation
desires that the Executive provide certain consulting services to the
Corporation in order to permit the Corporation to avail itself of the extensive
expertise, knowledge, and experience of the Executive with respect to the
Corporation’s business and customers and the Executive desires to provide such
services to the Corporation, all upon the terms and subject to the conditions
set forth herein.

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and agreements set
forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows.

 

1.             Term.
Executive shall perform the services hereunder for a period commencing on January 4,
2010 (“Effective Date”) and ending on December 31, 2011 (such period is
referred to hereinafter as the “Consulting Period”).  The Consulting Agreement may only be
terminated during the Consulting Period by the Corporation in the event of
Executive’s death, Disability, termination for cause (as defined in Section 6.2
of the Employment Agreement) or Executive’s voluntary termination of service.

 

2.             Services to be Provided.
The Corporation hereby agrees to engage the Executive, and the Executive hereby
agrees to serve the Corporation, on the terms and subject to the conditions set
forth in this Agreement.  Commencing on
the Effective Date and during the Consulting Period, the Executive shall
perform the following services: (i) attend as a “goodwill ambassador” of
the Corporation the trade shows scheduled for September, 2010 in Cologne,
Germany, April,  2010 in Canton, China,
April, 2011 in Canton, China, and October, 2011 in Canton, China, such
attendance to be coordinated with the attendance by Corporation executives who
may attend such trade shows and following such trade shows, provide a report to
the Chief Executive Officer of the Corporation 
(“CEO”) and/or the Board of Directors (the “Board”); and (ii) at
the request of, and in consultation with, the CEO (and in conjunction with
senior Corporation executives), maintain and assist in managing relationships
with major customers, entertain such customers through customer outings
(hunting, fishing, golf, etc.), consult and advise on products, services and
manufacturing facilities, visit the Corporation’s largest customers and the
Corporation’s international operations, and provide the Board, the CEO and
senior corporate executives with consultation and advice on business matters
affecting the Corporation.  Executive will be reimbursed for the
reasonable out-of-pocket expenses (including 

 

 

business travel
and entertainment) which he incurs in performing his consulting services.

 

Executive’s
title during the Consulting Period will be mutually agreed upon between
Executive and the Corporation.  Executive
will continue to serve as a member of the Board and as Chairman of the Board
(as non-executive Chairman commencing January 4, 2010) until the
Corporation’s annual meeting of stockholders in 2010.  Executive’s service on the Board thereafter
will be subject to his nomination to such position in the discretion of the
Board and election to such position.

 

Executive
will be available to perform services up to ten (10) days per month.  The CEO and Executive will agree on the days
Executive will be performing services under the Consulting Agreement.  In addition to the consulting fee provided
for in Section 3(a), the Corporation may request Executive to perform
services for additional days per month at the rate of $1,600 per day.  The Corporation and the Executive reasonably
anticipate that following the Effective Date, Executive’s level of services
provided to the Corporation will be reduced permanently to a level less than or
equal to twenty (20%) percent of the level of services provided prior to the
Effective Date.

 

3.             Consulting Fees; Benefits; Office Space And Assistant.

 

(a)           Executive will
be paid a consulting fee for his services of $200,000 per year.  Executive will be paid his consulting fees
monthly.  Executive will be entitled to a
bonus of $50,000 per year for each Corporation fiscal year which ends
coincident with, or prior to, the termination of the Consulting Agreement, if
the Corporation meets its financial targets and pays bonuses to executive
officers for such fiscal year (such determination will be made by the Board).

 

(b)           Executive will be provided during the Consulting Period with
health and life insurance coverages (including executive medical) under the
Corporation’s existing benefit programs, but if such coverages cannot be
continued under the existing benefit programs or if the healthcare coverage
cannot be provided in a manner such that benefit payments will continue to be
tax-free to Executive and his dependents, the Corporation will arrange for
other, comparable coverages at its expense. 
Executive will continue to be responsible for paying the costs of any
dependent coverage in the same manner as if he were an active employee.

 

(c)           To assist in performing the consulting services, Executive
will be provided during the Consulting Period, at the Corporation’s expense,
with an equipped office and his current secretary/administrative assistant (or
a substitute acceptable to Executive). 
The secretary/administrative assistant shall receive a level of
compensation and benefits comparable to that being received by such assistant
at the end of the Term of the Employment Agreement.  Executive’s office will be at a location
acceptable to Executive, but will not be in the Portland headquarters building.

 

(d)           Executive will also be provided with an automobile (and
related costs) under terms similar to those the Corporation uses for senior
executives, with

 

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reimbursement for membership dues and
assessments at a country club, and payment for a financial/tax consultant for
personal financial and tax planning.  At
the end of the Consulting Period, Executive will be given the automobile he is
then using (which will be a Cadillac Escalade or equivalent vehicle) without additional
payment.

 

(e)           If any of the payments (except for his consulting fees and
bonuses), reimbursements or benefits received or to be received by Executive
pursuant to the terms of this Agreement (all such payments, reimbursements and
benefits, excluding the Gross-Up Payment, being hereinafter referred to as the “Total
Payments”) will be subject to any federal, state or local income tax (the “Income
Tax”), the Corporation shall pay to Executive, or to the appropriate taxing
authorities, consistent with past Corporation practices, an additional amount
(the “Gross-Up Payment”) such that the net amount retained by Executive, after
deduction of any Income Tax on the Total Payments and any federal, state and
local income levied upon the Gross-Up Payment, and after taking into account
the phase out of itemized deductions and personal exemptions attributable to
the Gross-Up Payment, shall be equal to the Total Payments. Any Gross-Up
Payments shall be made directly to the appropriate taxing authorities or paid
to Executive within ten (10) days following the date the Income Tax is
paid by Executive.

 

4.             Independent Contractor.
During the Consulting Period, the Executive shall be an independent contractor
and not an employee of the Corporation.

 

5.             Indemnification.  During the term of this Agreement and after
the end of the Consulting Period for a period of three (3) years, the
Corporation shall indemnify Executive and hold Executive harmless from and
against any claim, loss or cause of action arising from or out of Executive’s
performance of services for the Corporation or any of its subsidiaries or other
affiliates or in any other capacity, including any fiduciary capacity, in which
Executive serves at the Corporation’s request, in each case to the maximum
extent permitted by law and under the Corporation’s Articles of Incorporation
and By-Laws (the “Governing Documents”), provided that in no event shall the
protection afforded to Executive hereunder be less than that afforded under the
Governing Documents as in effect on the date of this Agreement except from
changes mandated by law.  During the
Consulting Period and for a period of three (3) years thereafter,
Executive shall be covered by any policy of directors and officers liability
insurance maintained by the Corporation for the benefit of its officers and
directors.

 

6.             Assignment; Binding Agreement.  In addition to any obligations imposed by law
upon any successor to, or transferor of, 
the Corporation, the Corporation will require any successor to, or
transferor of, all or substantially all of the business and/or assets of the
Corporation or the stock of the Corporation (whether direct or indirect, by
purchase, merger, reorganization, liquidation, consolidation or otherwise) to
expressly assume and agree to perform this Agreement, in the same manner and to
the same extent that the Corporation would be required to perform it if no such
succession had taken place.  This
Agreement is a personal contract, and the rights and interests of the Executive
hereunder may not be sold, transferred, assigned, pledged, encumbered, or
hypothecated by him, except as otherwise expressly permitted by the provisions
of this Agreement. This Agreement shall inure to the benefit of and be
enforceable by and against the Executive and his personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees, and legatees, If the Executive should die 

 

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while any amount would still be
payable to him hereunder relating to services performed through his date of
death, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Agreement to his devisee, legatee or other
designee or, if there is no such designee, to his estate.

 

7.             Employment Agreement Provisions.  The Corporation and
Executive acknowledge and agree that certain provisions of the Employment
Agreement continue in effect during the Consulting Period and thereafter as
provided in the Employment Agreement, including, Section 2(f) relating
to the Omark Salary Continuation Plan (including the obligation to fund or
otherwise secure the obligation upon a Change in Control),  Section 3(c) providing for the
terms and conditions of Executive’s retiree healthcare coverage, and Section 4
providing for Confidentiality and Noncompetition  restrictions after Executive’s termination of
services under this Agreement.

 

8.             Entire Agreement.  This Agreement contains all the
understandings between the parties hereto pertaining to Executive’s provision
of services during the Consulting Period.

 

9.             Amendment or Modification, Waiver. No provision of this Agreement may be amended or waived,
unless such amendment or waiver is agreed to in writing, signed by the
Executive and by a duly authorized officer of the Corporation. No waiver by any
party hereto of any breach by another party hereto of any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of a similar or dissimilar condition or provision at the same time,
any prior time, or any subsequent time.

 

10.           Notices.
Any notice to be given hereunder shall be in writing and shall be deemed given
when delivered personally, sent by courier or facsimile or registered or
certified mail, postage prepaid, return receipt requested, addressed to the
party concerned at the address indicated below or to such other address as such
party may subsequently give notice hereunder in writing:

 

If
to the Executive, to:

 

James
S. Osterman

[redacted]

[redacted]

 

If
to the Corporation, to:

 

Blount
International, Inc.

4909
SE International Way

Portland,
OR  97222

Attention:
General Counsel

 

Any notice delivered
personally, by courier, or by registered or certified mail, postage prepaid,
return receipt requested, under this Section 10 shall be deemed given on
the date delivered, and any notice sent by facsimile shall be deemed given on
the date transmitted by facsimile, with satisfactory transmission acknowledged.

 

4

 

11.           Arbitration of Disputes; Expenses.  All claims by
Executive for compensation and benefits under this Agreement shall be directed
to and determined by the Board and shall be in writing.  Any denial by the Board of a claim for
benefits under this Agreement shall be delivered to Executive in writing and
shall set forth the specific reasons for the denial and the specific provisions
of this Agreement relied upon.  The Board
shall afford a reasonable opportunity to Executive for a review of a decision
denying a claim and shall further allow Executive to appeal to the Board a
decision of the Board within sixty (60) days after notification by the Board
that Executive’s claim has been denied. 
To the extent permitted by applicable law, any further dispute or
controversy arising under or in connection with this Agreement shall be settled
exclusively by arbitration in Portland, Oregon, in accordance with the rules of
the American Arbitration Association then in effect.  Judgment may be entered on the arbitrator’s
award in any court having jurisdiction.

 

The
Corporation shall pay all legal fees and related expenses (including the costs
of experts, evidence and counsel) incurred by the Executive, within thirty (30)
days after Executive presents such legal fees and related expenses for payment
to the Corporation,  as a result of (i) the
Executive’s termination of services under this Agreement (including all such
fees and expenses, if any, incurred in contesting or disputing any such
termination of services), (ii) the Executive seeking to obtain or enforce
any right or benefit provided by this Agreement or by any other plan or
arrangement maintained by the Corporation under which the Executive is or may
be entitled to receive benefits.  Except
to the extent provided in the preceding sentence, each party shall pay its own
legal fees and other expenses associated with any dispute.  Executive shall submit the request for
reimbursement for an expense promptly and Executive shall not be reimbursed for
the expense if the request for reimbursement for such expense is submitted
later than two months prior to the end of the calendar year following the
calendar year in which the expense was incurred.

 

12.           Severability.
If any provision of this Agreement or the application of any such provision to
any Party or circumstances shall be determined by any court of competent
jurisdiction to be invalid and unenforceable to any extent, the remainder of
this Agreement or the application of such provision to such person or
circumstances other than those to which it is so determined to be invalid and
unenforceable shall not be affected thereby, and each provision hereof shall be
validated and shall be enforced to the fullest extent permitted by law.

 

13.           Survivorship.
The respective rights and obligations of the Parties hereunder shall survive
any termination of this Agreement to the extent necessary to the intended
preservation of such rights and obligations.

 

14.           Governing Law; Venue.
This Agreement will be governed by and construed in accordance with the laws of
the State of Delaware, without regard to the principles of conflicts of law
thereof.

 

15.           Headings.
All descriptive headings of sections and paragraphs in this Agreement are
intended solely for convenience, and no provision of this Agreement is to be
construed by reference to the heading of any section or paragraph.

 

5

 

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

 

IN WITNESS WHEREOF, the
parties have executed this Agreement on the date and year first above written
to be effective on the Effective Date.

 

 

	
   

  	
  BLOUNT
  INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Eliot M. Fried

  
	
   

  	
   

  	
  Name:  Eliot M. Fried

  
	
   

  	
   

  	
  Title:
  Chairman, Compensation Committee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Executive

  
	
   

  	
   

  
	
   

  	
  /s/
  James S. Osterman

  
	
   

  	
  James
  S. Osterman

  

 

6Exhibit 10.1

 

FOURTH TEMPORARY WAIVER AGREEMENT (this “Agreement”),
dated as of September 30, 2009, to the Fourth Amended and Restated Credit
Agreement dated as of January 31, 2005 (as heretofore amended,
supplemented or otherwise modified, the “Credit Agreement”), among
ACCURIDE CORPORATION, a Delaware corporation (the “U.S. Borrower”),
ACCURIDE CANADA INC., a corporation organized and existing under the law of the
Province of Ontario (the “Canadian Borrower”, and, together with the
U.S. Borrower, the “Borrowers”), the banks, financial institutions and
other institutional lenders party thereto (collectively, the “Lenders”)
and DEUTSCHE BANK TRUST COMPANY AMERICAS, as administrative agent for the
Lenders (in such capacity as successor to Citicorp USA, Inc., the “Administrative
Agent”), is entered into by and among the Borrowers, the other Loan Parties
and the Lenders.

 

W I T N E S S E T H
:

 

A.            WHEREAS,
the Borrowers, the Lenders, and the Administrative Agent are parties to the
Credit Agreement;

 

B.            WHEREAS,
pursuant to the Credit Agreement, the Lenders have made certain loans to the
Borrowers;

 

C.            WHEREAS,
as a result of the then likely occurrence of certain Events of Default under
the Credit Agreement, Citicorp USA, Inc., as Administrative Agent at such
time, and the Lenders entered into that certain Temporary Waiver Agreement (the
“First Temporary Waiver Agreement”), dated as of July 1, 2009,
whereby the Lenders agreed to temporarily waive the Scheduled Defaults until
the Temporary Waiver Termination Date as so defined therein (hereinafter
defined as the “First Temporary Waiver Termination Date”);

 

D.            WHEREAS,
as a result of the then likely occurrence and/or continuation of certain Events
of Default after the First Temporary Waiver Termination Date, under the Credit
Agreement, Citicorp USA, Inc., as Administrative Agent at such time, and
the Lenders entered into that certain Second Temporary Waiver Agreement  (the “Second Temporary Wavier Agreement”),
dated as August 14, 2009, whereby the Lenders agreed to extend the
temporary waiver of the Scheduled Defaults and temporarily waive the Additional
Default until the Second Temporary Waiver Termination Date;

 

E.             WHEREAS,
as a result of the then likely occurrence and/or continuation of certain Events
of Default after the Second Temporary Waiver Termination Date, under the Credit
Agreement, the Administrative Agent and the Lenders entered into that certain
Third Temporary Waiver Agreement  (the “Third
Temporary Wavier Agreement”), dated as September 15, 2009, whereby the
Lenders agreed to extend the temporary waiver of the Scheduled Defaults and the
Additional Default and temporarily waive the Technical Default until the Third
Temporary Waiver Termination Date;

 

F.             WHEREAS,
the Administrative Agent and the Lenders will, if the Scheduled Defaults, the
Additional Default or the Technical Default occur(s) and remain(s) continuing
as a result of the Third Temporary Waiver Termination Date occurring, be
entitled to 

 

 

exercise all of their rights and remedies under the Credit Agreement,
the other Loan Documents and applicable law (such rights, remedies and actions,
collectively, “Enforcement Actions”), including without limitation, to
declare to be immediately due and payable the outstanding principal of the
Advances, all accrued interest thereon and all fees and other obligations owing
to the Administrative Agent and the Lenders under the Credit Agreement and the
other Loan Documents;

 

G.            WHEREAS,
certain Lenders identified to the U.S. Borrower have formed a steering committee
(the “Steering Committee”), provided that members of the Steering
Committee shall not assume any additional duties or obligations as a result of
being on the Steering Committee;

 

H.            WHEREAS,
each Borrower acknowledges and agrees that it shall continue to not request any
Advances, Letters of Credit or other extensions of credit under the Credit
Agreement during the Fourth Temporary Waiver Period (as defined below), except
as contemplated in Section 4.7 hereof;

 

I.              WHEREAS,
the Borrowers have requested that the Lenders agree to extend the temporary
waiver of the Scheduled Defaults, the Additional Default and the Technical
Default through the Fourth Temporary Waiver Termination Date (as defined below)
in order to afford the Borrowers an opportunity to propose an amendment to or
restructuring of its obligations under the Credit Agreement and the other Loan
Documents that is acceptable to the Lenders (in their sole discretion); and

 

J.             WHEREAS,
the Lenders have agreed to such request, subject to the terms and provisions
set forth in this Agreement, and without any advance understanding or agreement
by the Lenders to consent to any proposed amendment to or restructuring of the
Credit Agreement or the consummation of any transaction for which consent or
waiver would be required under the Credit Agreement or the other Loan
Documents.

 

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

 

SECTION 1.           Definitions.Capitalized
terms used herein (including in the recitals) but not defined herein have the
meanings assigned to them in the Credit Agreement, the First Temporary Waiver
Agreement, the Second Temporary Waiver Agreement or the Third Temporary Waiver
Agreement (as applicable).

 

SECTION 2.           Acknowledgements.

 

2.1.          Amount of
Obligations.

 

Each Loan Party acknowledges and agrees that (a) as
of 5:00 pm New York time on the date hereof, the Obligations include, without
limitation, the amounts set forth on Schedule 1 attached hereto on account
of the outstanding unpaid amount of principal of, accrued and unpaid interest
on, and fees and commissions related to, the Advances and (b) such Loan
Party is truly and justly indebted to the Lenders and the Administrative Agent
for, or has 

 

2

 

provided a guaranty for the benefit of the Lenders and
the Administrative Agent with respect to, the Obligations without defense,
counterclaim or offset of any kind, and such Loan Party ratifies and reaffirms
the validity, enforceability and binding nature of such Obligations.

 

2.2.          Events
of Default.Each Loan Party (a)(i) acknowledges and agrees that the Scheduled
Defaults, the Additional Default and the Technical Default would already have
occurred and be continuing but for the Third Temporary Waiver Agreement and the
Senior Subordinated Notes Forbearance (as defined below), continuing in full
force and effect, and (ii) represents and warrants to the Administrative
Agent and the Lenders that no Default or Event of Default (other than the
Scheduled Defaults, the Additional Default and the Technical Default) has
occurred and continues to exist as of the Fourth Waiver Effective Date (as defined
below) and (b) absent the agreement of the Lenders to extend the temporary
waiver of the Scheduled Defaults, the Additional Default and the Technical
Default, as provided in this Agreement, the Administrative Agent and the
Lenders would be entitled, following the occurrence and during the continuance
of such Scheduled Defaults, Additional Default or Technical Default, at any
time to take any and all Enforcement Actions.

 

2.3.          Collateral.

 

Each Loan Party ratifies and reaffirms the validity
and enforceability (without defense, counterclaim or offset of any kind) of the
Liens granted to secure any of the Obligations by such Loan Party to the
Administrative Agent, for the benefit of the Lenders, pursuant to the
Collateral Documents to which such Loan Party is a party.  Each Loan Party acknowledges and agrees that
all such Liens granted by such Loan Party shall continue to secure the
Obligations from and after the Fourth Waiver Effective Date.  Each Loan Party hereby represents and
warrants to the Administrative Agent and the Lenders that, pursuant to the
Collateral Documents to which such Loan Party is a party, the Obligations are
secured by Liens on all of such Loan Party’s assets to the extent required by
the Collateral Documents, and each Loan Party will, at the reasonable request
of the Administrative Agent or any of the Lenders, deliver to the requesting
party documents evidencing the validity and enforceability of such Liens.

 

2.4.          Not an Arrangement
with Creditors.

 

Each
of the parties hereto acknowledges that this document is a temporary waiver in
accordance with the terms hereof and should not be construed as an arrangement
by any Loan Party with its creditors.

 

SECTION 3.           Temporary Waiver.

 

3.1.          Fourth Temporary
Waiver Period.

 

Subject to the terms and conditions of this Agreement,
the Lenders party hereto agree to temporarily waive the Scheduled Defaults, the
Additional Default and the Technical Default during the period from and
including the Fourth Waiver Effective Date until the earliest to occur of (the
date of such occurrence, the “Fourth Temporary Waiver Termination Date”;
and such period, the “Fourth Temporary Waiver Period”) (a) 5:00 P.M.
(New York City time) on October 5, 2009, (b) the occurrence and
continuance of an Event of Default that is not a Scheduled Default, an
Additional Default or a Technical Default, (c) the date of payment of the 

 

3

 

interest payment due and owing on August 1, 2009
(the “Senior Subordinated Notes Interest Payment”) to the holders under
the U.S. Borrower’s 81⁄2% Senior Subordinated Notes due 2015 (the “Senior
Subordinated Notes”), (d) the date of delivery by the U.S. Borrower of
a Senior Subordinated Notes Payment Notice (as defined below) to the
Administrative Agent and the Steering Committee, (e) the occurrence of the
“Forbearance Termination Date” under, and as defined in, that certain
Forbearance Agreement (the “Senior Subordinated Notes Forbearance”),
dated as of August 31, 2009, as heretofore amended, supplemented or
otherwise modified or extended, or superseded by a new agreement entered into
on substantially the same terms and otherwise in form and substance reasonably
satisfactory to the Administrative Agent, by and among certain holders of the
Senior Subordinated Notes, the U.S. Borrower, certain guarantors of the Senior
Subordinated Notes and The Bank of New York Mellon Trust Company (f/k/a The
Bank of New York Trust Company, N.A.), as trustee, (f) the date on which
the holders of the Senior Subordinated Notes shall exercise any rights or
remedies available under the Senior Subordinated Note Indenture or applicable
law as a result of the occurrence of any “Default” or “Event of Default” under,
and as defined in, the Senior Subordinated Note Indenture (whether in connection
with the Additional Default or otherwise), (g) any representation or
warranty made by any Loan Party in this Agreement proving to have been untrue,
inaccurate or incomplete in any material respect on or as of the date made or
deemed made, (h) failure of any Loan Party to perform, as and when
required, any of their respective covenants or other obligations set forth in
this Agreement (it being understood that time is of the essence for each such
covenant and obligation), including without limitation, any provision of Section 4
below and (i) any Loan Party shall take any action to challenge (including
without limitation, to assert in writing any challenge to) the validity or
enforceability of this Agreement or any other Loan Document or any provision
hereof or thereof.

 

3.2.          No Waiver;
Limitation on Fourth Temporary Waiver.

 

Each Loan Party acknowledges and agrees that the
Lenders are only agreeing to temporarily waive the Scheduled Defaults, the
Additional Default and the Technical Default during the Fourth Temporary Waiver Period, and after the Fourth Temporary Waiver Termination Date, if the
Scheduled Defaults, the Additional Default and/or the Technical Default have
occurred and are continuing, the temporary waiver provided herein shall
automatically terminate without any further action or notice by any party, and
as a result, (a) the waiver in this Agreement shall no longer constitute a
waiver of the occurrence or the continuance of any Event of Default which is a
Scheduled Default, an Additional Default or a Technical Default, and each such
Event of Default that occurs shall, after it occurs, continue to exist after
the Fourth Temporary
Waiver Termination Date and (b) nothing contained in this Agreement shall
be construed to limit or affect the right of the Administrative Agent and the
Lenders to bring or maintain during the Fourth Temporary Waiver Period any
action to enforce or interpret any term or provision of this Agreement, or to
file or record instruments of public record (or take other action) to perfect
or further protect the perfection and/or priority of the liens and security
interests granted by the Loan Parties to the Administrative Agent and the
Lenders.  For the avoidance of doubt,
during the Fourth Temporary
Waiver Period, the Loan Parties and their Subsidiaries may not take any action
that would be prohibited under any Loan Document during the occurrence of a
Default or Event of Default.

 

3.3.          Enforcement Actions
after Fourth Temporary Waiver Period.

 

4

 

Each Loan Party acknowledges and agrees that, on the Fourth Temporary Waiver Termination Date, the
agreement of the Lenders to temporarily waive the Scheduled Defaults, the
Additional Default and the Technical Default shall cease and be of no further
force or effect, and if any Scheduled Default, Additional Default and/or
Technical Default has occurred and is continuing at such time, the
Administrative Agent and the Lenders shall be entitled to immediately take
Enforcement Actions under the Credit Agreement, the other Loan Documents and
applicable law, all without further notice or demand, in respect of the
Scheduled Defaults, Additional Defaults and/or Technical Default (as
applicable), or any other Event of Default, then existing.

 

SECTION 4.           Agreements.

 

To induce the Lenders to enter into this Agreement and
to temporarily waive the Scheduled Defaults, the Additional Default and the
Technical Default during the Fourth Temporary Waiver Period, if the Scheduled Defaults,
the Additional Default and/or the Technical Default have occurred and are
continuing, the Borrowers, the other Loan Parties and the Lenders agree as
follows:

 

4.1.          Financial Advisor.

 

The Administrative Agent or the Steering Committee
shall, on behalf of the Lenders, have the right to continue to retain or to
cause its counsel to continue to retain for its benefit a restructuring or
financial advisor to assist with the coordination and consummation of a
potential amendment to or restructuring of the Credit Agreement, and the U.S.
Borrower shall be liable for all costs and expenses incurred by the
Administrative Agent or the Steering Committee, as applicable, with respect to
such restructuring or financial advisor. 
In connection with such retention, the U.S. Borrower shall maintain in
full force and effect the previously executed engagement-related agreement with
such restructuring or financial advisor, which includes an agreement by the
U.S. Borrower to be directly responsible for the fees of such restructuring or
other financial advisor, to pay such fees promptly upon being invoiced therefor
and to use its commercially reasonable efforts to cooperate, and to cause its
own advisors and its Subsidiaries to cooperate with such restructuring or other
financial advisor in the performance of its duties as an advisor in accordance
with such engagement-related agreement.

 

4.2.          Minimum Liquidity.

 

From and after the Fourth Waiver Effective Date, the U.S. Borrower
shall not, directly or indirectly, at any time permit (a) Liquidity to be less
than $17,000,000 or (b) average Liquidity for five consecutive Business
Days (“Average Liquidity”) to be less than $19,000,000; provided,
however, that (i) Liquidity shall be calculated without giving
effect to the unutilized amount of Commitments of any Defaulting Lender and (ii) if
(A) Liquidity at any time is less than $17,000,000 but greater than
$15,000,000 or (B) average Liquidity for five consecutive Business Days is
less than $19,000,000 but greater than $17,000,000, such failure shall not constitute
an Event of Default or a failure to perform its obligations hereunder if such
failure is consented to by the Steering Committee within three Business Days
after the occurrence of such failure. 
Upon any Responsible Officer of the U.S. Borrower becoming aware of the
failure to satisfy the requirement in clause (a) or (b) of the
previous sentence, the U.S. Borrower shall 

 

5

 

immediately notify the Administrative Agent and the
Steering Committee of such failure.  In
addition, if at any time (x) Liquidity is less than $26,000,000 or (y) Average
Liquidity is less than $29,000,000, the U.S. Borrower shall, on each Business
Day thereafter, deliver to the Administrative Agent and the Steering Committee
a report setting forth the Liquidity at the end of the previous Business Day
and the Average Liquidity for the five consecutive Business Days ending on such
previous day, and such daily reporting shall continue until the U.S. Borrower
delivers to the Administrative Agent a report demonstrating that, at the end of
the previous Business Day, Liquidity is greater than $26,000,000 and Average
Liquidity is greater than $29,000,000.

 

4.3.          Weekly Cash Flow
Forecasts, Etc.

 

The U.S. Borrower shall continue to deliver to the
Administrative Agent and the Steering Committee, on Thursday (or the
immediately succeeding Business Day if Thursday is not a Business Day) of each
week, (a) a 13-week cash flow forecast in the form of such forecast
delivered to the Steering Committee under the terms of the Third Temporary
Waiver Agreement or another form reasonably satisfactory to the Steering
Committee (the “13-Week Cash Flow Forecast”), (b) a reconciliation
of the cash balances of the U.S. Borrower and its Subsidiaries between the amount
shown on the U.S. Borrower’s general ledger for the prior week and the amount
maintained on deposit for such week by the U.S. Borrower and its Subsidiaries
with banks, (c) a variance report (i) showing on a line item basis
the percentage and dollar variance of actual cash disbursements and revenues
and cash receipts for the prior week from the amounts set forth for such week
in the most recent 13-Week Cash Flow Forecast and (ii) containing
explanations of material variances from such 13-Week Cash Flow Forecast, (d) a
certificate, in a form satisfactory to the Steering Committee, of a Responsible
Officer of the U.S. Borrower as to the calculation of Liquidity for the prior
week and attaching forth such calculations and (e) the weekly flash
information provided to the U.S. Borrower’s Board of Directors for such
week.  Each delivery of the 13-Week Cash
Flow Forecast shall be deemed to be a representation by the U.S. Borrower that
such 13-Week Cash Flow Forecast has been prepared based upon good faith
estimates and assumptions that the U.S. Borrower believes were reasonable at
the time made (it being understood and agreed that such 13-Week Cash Flow
Forecast is not to be viewed as fact and that actual results during the period
or periods covered thereby may differ from such projected results).

 

4.4.          Weekly Updates.

 

If requested by the Administrative Agent or the
Steering Committee, on Thursday (or the immediately succeeding Business Day if
Thursday is not a Business Day) of each week, and on such other dates requested
by the Steering Committee on providing the U.S. Borrower with two (2) Business
Days’ prior written notice, during the Fourth Temporary Waiver Period, the U.S.
Borrower shall provide the Administrative Agent, the Steering Committee and
their respective advisors with an update (via a meeting or conference call with
the U.S. Borrower’s management and/or its advisors) on the weekly flash
information provided to the Board of Directors, the ongoing financial
performance, operations and liquidity of the U.S. Borrower and its Subsidiaries
and the progress toward a proposal for an amendment to or restructuring of the
Obligations under the Credit Agreement and the Senior Subordinated Notes.

 

6

 

4.5.          Additional Interest;
Fees.

 

For each day during the Fourth Temporary Waiver Period, the Advances and
all outstanding Obligations shall accrue interest at a rate per annum equal to
2% plus the rate otherwise applicable to such Advances pursuant to Section 2.07
of the Credit Agreement, and such additional interest shall be paid monthly in
arrears on the last Business Day of each calendar month during the Fourth Temporary Waiver Period and on the Fourth Temporary Waiver Termination Date.

 

4.6.          Activity during Fourth Temporary
Waiver Period.

 

The U.S. Borrower shall not, and shall not permit any
of its Subsidiaries to, (a) incur any Indebtedness under Section 5.02(b)(iii)(A) or
5.02(b)(iii)(I) of the Credit Agreement, other than PIK Advances, Letters
of Credit issued, in the sole discretion of the Issuing Bank, at the request of
the U.S. Borrower for the purpose of extending or replacing Letters of Credit
in the ordinary course, and up to $500,000 of Letter of Credit Advances
resulting from draws under Letters of Credit that are expiring, (b) make
any Investments under Section 5.02(e)(xiii) of the Credit Agreement or (c) sell
or otherwise dispose of any assets under Section 5.02(d)(ii) of the
Credit Agreement.  In addition, during
the Fourth Temporary
Waiver Period, no Borrower shall request, or seek to enforce, the funding of
any Advances by any Defaulting Lender or any successor or assignee
thereof.  Furthermore, during the Fourth Temporary Waiver Period, the U.S.
Borrower and its Subsidiaries may not take any action, except the incurrence of
Indebtedness permitted by clause (a) above, that would be prohibited by
the terms of the Credit Agreement or any other Loan Document at any time while
an Event of Default is in existence.

 

4.7.          FAS 159.

 

Notwithstanding any other provision contained herein
or in any other Loan Document, all terms of an accounting or financial nature
used herein or in any other Loan Document shall be construed, and all
computations of amounts and ratios referred to herein or in any other Loan
Document shall be made at all times hereafter, without giving effect to any
election under Statement of Financial Accounting Standards 159 (or any other
Financial Accounting Standard having a similar result or effect) to value any
Indebtedness or other liabilities of  any
Loan Party or any Subsidiary of any Loan Party at “fair value”, as defined
therein.

 

4.8.          Conversion of
Advances.

 

Notwithstanding anything to the contrary in the Loan
Documents, from and after the Fourth Waiver Effective Date, (a) if, on
any date, the per annum interest rate applicable to Base Rate Advances is lower
than the per annum interest rate applicable to Eurodollar Rate Advances
requested on such date and having an Interest Period of one month, such Base
Rate Advances shall, on the third Business Day following such date, be
converted into Eurodollar Rate Advances having an Interest Period of one month,
and (b) subject to clause (a) above, on the last day of the then
existing Interest Period therefor each Eurodollar Rate Advance will, at the
option of the applicable Borrower either continue as a Eurodollar Rate Advance
having an Interest Period of one month or Convert to a Base Rate Advance, and (c) the
obligation of the 

 

7

 

Lenders to Convert or continue Advances into
Eurodollar Rate Advances having an Interest Period of longer than one month
shall be suspended.

 

4.9.          Notice of Payment of
Interest on Senior Subordinated Notes.

 

The U.S. Borrower shall provide the Administrative
Agent with at least five (5) Business Days prior written notice (a “Senior
Subordinated Notes Payment Notice”) of its intention to make the Senior
Subordinated Notes Interest Payment.

 

4.10.        Senior Subordinated
Notes Forbearance; Most Favored Nation Protection.

 

(a)           No
property has been paid or will be payable to the holders of the Senior
Subordinated Notes in connection with the Senior Subordinated Notes Forbearance
(or any extension thereof) and if any cash consideration is paid to the holders
of the Senior Subordinated Notes in connection with the Senior Subordinated
Notes Forbearance (or any extension thereof) in an amount which exceeds (in
percentage terms) the aggregate amount of the fee payable to Lenders that
consented to the terms of this Agreement, an amount equal to such difference
shall be paid as a fee pro rata to such Lenders.

 

(b)           If
the terms of any amendment, waiver or forbearance (including the Senior
Subordinated Notes Forbearance or any extension thereof) imposes any more
onerous restriction or covenant on  the
U.S. Borrower or any of its Subsidiaries under or in respect of the Senior
Subordinated Notes (each an “Additional Restriction”) then:

 

(i)            the
U.S. Borrower shall, and will cause each of the other Loan Parties to, enter
into such documentation as the Administrative Agent may require in order to
modify the terms of this Agreement and each other Loan Document in order to
give effect to an obligation on the part of the U.S. Borrower or such other
Loan Party to comply with the terms of any such Additional Restriction; and

 

(ii)           from
and with effect from the date of imposition of such Additional Restriction,
automatically and without the need for any further action by or on the part of
the Administrative Agent, any Lender or any Loan Party and notwithstanding the
occurrence of any Event of Default under Section 7.01 of the Credit
Agreement with respect to any Loan Party, the U.S. Borrower or the applicable
Loan Party shall be obliged to comply with the terms of such Additional
Restriction as if it had been duly incorporated as an obligation in the Loan
Documents.

 

SECTION 5.           Conditions Precedent.

 

This Agreement shall become effective as of the date
first set forth above (the “Fourth Waiver Effective Date”) following the date on which all of the
following conditions have been satisfied or waived:

 

(a)           Execution
and Delivery.  The Borrowers, each
other Loan Party and Lenders constituting the Majority Lenders shall have duly
executed counterparts of this Agreement (whether the same or different
counterparts) and shall have delivered (including by way of facsimile or other
electronic (i.e., “pdf”) transmission) the same to 

 

8

 

White & Case LLP, 1155 Avenue of the Americas, New York, NY
10036, Attention: Po Saidi (facsimile number: 212-354-8113 / e-mail address: psaidi@whitecase.com) by 3:00 p.m.,
New York City time, on Wednesday, September 30, 2009.

 

(b)           No
Default.  After giving effect to this
Agreement, there shall be no Default or Event of Default.

 

(c)           Fees
and Expenses.  The Administrative
Agent shall have received all invoiced fees and accrued expenses of the
Administrative Agent and the Steering Committee required to be paid by the
Borrowers, including, without limitation, the reasonable fees and expenses of
legal counsel to the Administrative Agent and the Steering Committee and the
reasonable fees and expenses of any financial adviser appointed and retained
under Section 4.1 (Financial Advisor).

 

(d)           Senior
Subordinated Notes Forbearance.  The
holders of the Senior Subordinated Notes (i) shall have waived the
requirements of Section 4.1 of the Senior Subordinated Notes Forbearance
or shall have extended the deadline for such requirements to 5:00 p.m.,
New York City time, on October 5, 2009, and such waiver or extension shall
be in form and substance reasonably satisfactory to the Administrative Agent
and the Steering Committee and (ii) shall have extended the “Forbearance
Termination Date” as such term is defined in the Senior Subordinated Notes
Forbearance to 5.00 p.m. New York City time, on October 5, 2009.

 

SECTION 6.           Representations and Warranties.

 

In order to induce the Lenders to enter into this
Agreement, the Borrowers and the other Loan Parties hereby represent and
warrant to the Lenders that:

 

(a)           this
Agreement has been duly authorized by all necessary action of such entity, duly
executed and delivered by such entity and constitutes a legal, valid and
binding obligation of the Borrowers and each Loan Party, as applicable,
enforceable against each such entity respectively in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in
equity or at law;

 

(b)           all
of the representations and warranties of each Loan Party contained in the
Credit Agreement or the other Loan Documents are true and correct in all
material respects on the Fourth Waiver Effective Date
(except with respect to or as may be affected by the Scheduled Defaults, the
Additional Default and/or the Technical Default), with the same effect as
though such representations and warranties had been made on and as of the Fourth Waiver
Effective Date (it being understood that any representation or warranty made as
of a specific date shall be true and correct in all material respects as of
such specific date);

 

(c)           the Borrowers have
provided all information required to be provided, and have taken all actions
required to be taken, pursuant to Section 4.2 of the Third 

 

9

 

Temporary
Waiver Agreement, and all such information provided remains true and correct as
of the Fourth Waiver Effective Date.

 

SECTION 7.           Credit Agreement.

 

Except as expressly set forth herein, this Agreement (a) shall
not by implication or otherwise limit, impair, constitute a waiver of or
otherwise affect the rights and remedies of the Lenders, the Administrative
Agent, or the Borrowers under the Credit Agreement or any other Loan Document
and (b) shall not alter, modify, amend or in any way affect any of the
terms, conditions, obligations, covenants or agreements contained in the Credit
Agreement or any other Loan Document, all of which are ratified and affirmed in
all respects and shall continue in full force and effect.  Nothing herein shall be deemed to entitle the
Borrowers to a consent to, or a waiver, amendment, modification or other change
of, any of the terms, conditions, obligations, covenants or agreements
contained in the Credit Agreement or any other Loan Document in similar or
different circumstances.  After the date
hereof, any reference in the Loan Documents to the Credit Agreement shall mean
the Credit Agreement as modified hereby.

 

SECTION 8.           Consent of Loan Parties.

 

Each of the Loan Parties hereby consents to this
Agreement.  Each of the parties hereto
agrees that this Agreement shall constitute a Loan Document.

 

SECTION 9.           Release.

 

In further consideration of the execution by the
Administrative Agent and the Lenders of this Agreement, each Borrower for
itself and on behalf of its successors, assigns, Subsidiaries and Affiliates
(the “Releasing Parties”), hereby forever releases the Administrative
Agent and the Lender Parties (other than any Defaulting Lender) and their
successors, assigns, parents, Subsidiaries, Affiliates, officers, employees,
directors, agents and attorneys (collectively, the “Released Parties”)
from any and all debts, claims, demands, liabilities, responsibilities, disputes,
causes, damages, actions and causes of action (whether at law or in equity) and
obligations of every nature whatsoever, whether liquidated or unliquidated,
known or unknown, matured or unmatured, fixed or contingent, that any Releasing
Party may have against the Released Parties that arise from or relate to any
actions which the Released Parties may have taken or omitted to take prior to
the date hereof, in each case with respect to, arising out of, or related to
the Obligations, any Collateral, the Credit Agreement, any other Loan Document
and any third parties liable in whole or in part for the Obligations (the “Released
Matters”). Each Releasing Party acknowledges that the agreements in this Section 9
are intended to be in full satisfaction of all or any alleged injuries or
damages arising in connection with the Released Matters and constitute a
complete waiver of any right of setoff or recoupment, counterclaim or defense
of any nature whatsoever which arose prior to the Fourth Waiver Effective Date to payment or
performance of the Obligations.  Each
Releasing Party represents and warrants that it has no knowledge of any claim
by it against the Released Parties or of any facts, or acts or omissions of the
Released Parties which on the date hereof would be the basis of a claim by the
Releasing Parties against the Released Parties which is not released
hereby.  Each Releasing Party represents
and warrants that it has not purported to transfer, assign, pledge or otherwise
convey any of its right, title or interest in any Released Matter to any other
person or entity and 

 

10

 

that the foregoing constitutes a full and complete
release of all Released Matters.  The
Releasing Parties have granted this release freely, and voluntarily and without
duress.

 

SECTION 10.         GOVERNING LAW.

 

THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 11.         Successors and Assigns.

 

This Agreement shall be binding upon and inure to the
benefit of the Borrowers, the other Loan Parties, the Administrative Agent and
the Lenders, and each of their respective successors and permitted assigns, and
shall not inure to the benefit of any third parties.  The execution and delivery of this Agreement
by any Lender prior to the Fourth Waiver Effective Date shall be binding upon its
successors and permitted assigns and shall be effective as to any Advances or
Commitments assigned to it after such execution and delivery.

 

SECTION 12.         Counterparts.

 

This Agreement may be executed by the parties hereto
in any number of separate counterparts (including facsimiled or
electronic-mailed counterparts, and such facsimile or electronic mail
signatures shall be deemed to be the same as original signatures), each of
which shall be deemed to be an original, and all of which taken together shall
be deemed to constitute one and the same instrument.

 

SECTION 13.         Headings.

 

The Section headings used herein are for
convenience of reference only, are not part of this Agreement and are not to
affect the construction of, or to be taken into consideration in interpreting,
this Agreement.

 

*     *     *

 

11

 

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

 

	
   

  	
  ACCURIDE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen A. Martin

  
	
   

  	
   

  	
  Name: Stephen A. Martin

  
	
   

  	
   

  	
  Title: Vice President – General Counsel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ACCURIDE CANADA INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Stephen A. Martin

  
	
   

  	
   

  	
  Name:
  Stephen A. Martin

  
	
   

  	
   

  	
  Title:
  Assistant Secretary

  

 

 

	
   

  	
  ACCURIDE CUYAHOGA FALLS, INC.

  
	
   

  	
  ACCURIDE DISTRIBUTING, LLC

  
	
   

  	
  ACCURIDE EMI, LLC

  
	
   

  	
  AOT INC.

  
	
   

  	
  ERIE LAND HOLDING, INC.

  
	
   

  	
  BOSTROM HOLDINGS, INC.

  
	
   

  	
  BOSTROM SEATING, INC.

  
	
   

  	
  BOSTROM SPECIALTY SEATING, INC.

  
	
   

  	
  BRILLION IRON WORKS, INC.

  
	
   

  	
  FABCO AUTOMOTIVE CORPORATION

  
	
   

  	
  GUNITE CORPORATION

  
	
   

  	
  IMPERIAL GROUP HOLDING CORP. - 1

  
	
   

  	
  IMPERIAL GROUP HOLDING CORP. - 2

  
	
   

  	
  JAII MANAGEMENT COMPANY

  
	
   

  	
  TRANSPORTATION TECHNOLOGIES INDUSTRIES, INC.

  
	
   

  	
  TRUCK COMPONENTS INC.,

  
	
   

  	
  each as a Loan Party

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen A. Martin

  
	
   

  	
   

  	
  Name: Stephen A. Martin

  
	
   

  	
   

  	
  Title: Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ACCURIDE ERIE L.P.,

  
	
   

  	
  as a Loan Party

  
	
   

  	
   

  
	
   

  	
  By: AKW GENERAL PARTNER L.L.C.,

  
	
   

  	
  as General Partner

  
	
   

  	
   

  
	
   

  	
  By: ACCURIDE CORPORATION,

  
	
   

  	
  as Sole Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen A. Martin

  
	
   

  	
   

  	
  Name: Stephen A. Martin

  
	
   

  	
   

  	
  Title: Vice President – General Counsel

  
				

 

 

	
   

  	
  ACCURIDE HENDERSON LIMITED LIABILITY COMPANY

  
	
   

  	
  AKW GENERAL PARTNER L.L.C.,

  
	
   

  	
  each as a Loan Party

  
	
   

  	
   

  
	
   

  	
  By: ACCURIDE CORPORATION,

  
	
   

  	
  as Sole Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen A. Martin

  
	
   

  	
   

  	
  Name: Stephen A. Martin

  
	
   

  	
   

  	
  Title: Vice President – General Counsel

  
	
   

  	
   

  
	
   

  	
  IMPERIAL GROUP, L.P.,

  
	
   

  	
  as a Loan Party

  
	
   

  	
   

  
	
   

  	
  By: IMPERIAL GROUP HOLDING CORP. - 1,

  
	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen A. Martin

  
	
   

  	
   

  	
  Name: Stephen A. Martin

  
	
   

  	
   

  	
  Title: Secretary:

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