Document:

exh102.htm

 

Exhibit 10.2

EMPLOYMENT AGREEMENT

 

 

                This Employment Agreement (the "Agreement") is entered into as of the 25th day of February, 2010 between Peter Schuster ("Employee")
and Calibert Explorations, Ltd., a Nevada Corporation, it’s affiliates, predecessors and subsidiaries (the "Company”).

 

                WHEREAS, Employee and the Company desire to enter into this Agreement setting forth the terms and conditions for the employment relationship of Employee with the Company during the Employment Term (as defined below).

 

                 NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties to this Agreement hereby agree as follows:

 

1.             Services

 

                1.1           Employment. During
the Employment Term (as defined below), the Company hires Employee to perform such services as the Company may from time to time reasonably request consistent with Employee's position with the Company (as set forth in Section 1.1 and 1.5 hereof) and Employee's stature and experience in the industry (the "Services"). The Services and authority of Employee shall include, but not necessarily be limited to, management and supervision of all aspects of developing
and implementing technology initiatives within the Company.

 

                1.2           Location. During the Term, Employee's Services
shall be performed in Florida. Employee acknowledges and understands that the Company’s current headquarters are located in Clearwater Beach, Florida and that officers and other participants critical to the Company’s business are dispersed nationally and internationally, and that such dispersion will increase substantially as the Company grows. The parties therefore acknowledge and agree that the nature of Employee's duties hereunder may require domestic and international travel from time to time.

 

                1.3           Term. The
term of Employee's employment under this Agreement (the "Employment Term") shall commence on the 25th day of February, 2010 (the "Effective Date") and shall end on February, 24th 2012 unless sooner extended or terminated in accordance with the provisions of this Agreement.

 

For purposes of this Agreement, "Employment Year" shall mean each twelve-month period during the Term commencing on February, 24th,  and ending on February, 24th, of the following year. In the event the parties decide to extend this Agreement for an additional one year Employment
Term, any extension agreed upon must be done so in writing and executed by the Company and Employee no later than 5 p.m. Eastern Standard Time on November  25th, 2010.

 

1.4           Exclusive Employment; Non-Competition.  Employee agrees that his employment
hereunder is on an exclusive basis, and that as long as Employee is employed by the Company, Employee will not engage in any other business activity which is in conflict with Employee’s duties and obligations hereunder.  Employee agrees that during the Employment Term, Employee shall not directly or indirectly engage in or participate as an owner, partner, shareholder, officer, employee, director, agent of or consultant for any business that competes with any of the principal activities of the
Company.

 

 

 

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                1.5           Power and Authority.

 

1.5.1        During the Employment Term, Employee shall be Employed as Vice President, and a member of the Board of Directors.

 

                1.5.2           The Company may from time to time during the Term appoint Employee to one or more additional offices of the Company. Employee
agrees to accept such offices if consistent with Employee's stature and experience and position with the Company.

 

                1.6           Indemnification. The Company shall
indemnify Employee to the fullest extent allowed by applicable law. Without limiting the foregoing, Employee shall be entitled to the benefit of the indemnification provisions contained on the date hereof in the Bylaws of the Company and any applicable Bylaws of any Affiliate, notwithstanding any future changes therein.

 

2.             Compensation.

 

                As compensation and consideration for the Services provided by Employee during the Term pursuant to this Agreement, the Company agrees to pay to Employee the compensation set forth below.

 

                2.1           Fixed Annual Compensation. The
Company shall pay to Employee salary ("Fixed Annual Compensation") at the rate of  $96,000 per annum beginning on February 25th, 2010, and continuing for the term of this agreement, with stated salary for the first year of the Employment Term to be paid as follows: Fixed Annual Compensation payable to Employee by the Company hereunder shall be paid beginning February 25th of each year during the Employment Term and at such times and in such amounts
as the Company may designate in accordance with the Company’s usual salary practices, but in no event less than twice monthly.

 

                 2.2          Bonus. Under this Agreement, Employee
shall be entitled to participate in the highest bonus incentive program (hereafter “BIP”) set up by the Board. While the specific structure and trigger mechanisms for the BIP are at the sole discretion of the Board, the BIP shall afford Employee the opportunity to earn a cash bonus through the Employee’s accomplishment of specific pre-identified reasonable milestones in the development of the Company’s business, or by exceeding the approved business plan revenue and income levels. Any
payments under the BIP shall be paid annually to Employee and shall be paid no later than the end of the first quarter following the Company’s fiscal year-end. In addition to the BIP, Employee shall also be entitled to such additional bonus, if any, as may be granted by the Board (with Employee abstaining from any vote thereon) or compensation or similar committee thereof in the Board's (or such committee's) sole discretion based upon Employee's performance of his Services under this Agreement.

 

 

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3.             Expenses; Additional Benefits

 

                3.1           Vacation. Employee shall be entitled
to an aggregate of two weeks of paid vacation during each year of the Employment Term. Employee may take vacation at times determined by the Employee, however, subject the Company’s business needs. In addition, Employee shall be entitled to holidays generally observed in the United States and the State of Florida.

 

                3.2           Employee Business Expense Reimbursement.
Employee shall be entitled to reimbursement of all business expenses for which Employee makes a submission for and provides an adequate accounting to the Company beginning on the effective date of this Agreement. The determination of the adequacy of the accounting of the foregoing expenses shall be within the reasonable discretion of the Company’s independent certified accountants taking into consideration the substantiation requirements of the Internal Revenue Code of 1986, as amended (the "Code").
Employee shall be entitled to cash reimbursement for expense items, including extended travel. Employee shall be entitled to cash or stock reimbursement for ordinary expenses, including phone and local travel, as approved in advance by the Board. Such reimbursement of business expenses shall be payable to Employee at the end of each calendar month for the business expenses incurred by the Employee for the month prior for each specific submission for reimbursement during the Term of this Agreement,

 

                3.3           Stock Option Plan and Agreement. Concurrently
with the execution of this Agreement and in consideration for the execution thereof, Employee and the Company shall develop, implement and enter into the Calibert Explorations, Ltd., 2010 Stock Option Plan and Agreement.

 

                3.4           Medical and Dental Insurance. In the event
that the Company, with the approval of the Board of Directors, elects to establish a Medial Insurance Benefit Plan for the benefit of the Company’s employment staff, Employee shall be entitled to participate in such plan which shall include comprehensive medical and dental insurance (from a reputable and financially-sound insurance carrier of national standing) for himself and his immediate family. Such insurance shall cover at the minimum 100% of all hospitalization costs after payment of deductibles and
80% of other medical costs, with the annual deductible not exceeding $500 per person. There shall be no cap on benefits for the medical insurance, and the annual cap for dental insurance benefits shall not be less than $3,000. The Company may either provide these benefits directly to Employee or promptly reimburse Employee for the cost of such benefits, at the Company’s election.

 

                3.5           Other Agreements. Concurrent with the
execution of this Agreement, Employee and the Company shall enter into other Transaction Documents that have not been previously executed.

 

                3.6           General. Employee shall be entitled to
participate in any profit-sharing, pension, health, sick leave, holidays, personal days, insurance or other plans, benefits or policies (not duplicative of the benefits provided hereunder) available to the employees of the Company or its Affiliates on the terms generally applicable to such employees.

 

 

 

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                3.7           No Reduction of Benefit or Payment. No
payment or benefit made or provided under this Agreement shall be deemed to constitute payment to Employee or his legal representative or guardian in lieu of, or in reduction of, any benefit or payment under an insurance, pension or other benefit plan, and no payment under any such plan shall reduce any payment or benefit due under this Agreement.

 

                3.8           Covenant Not To Solicit.  Employee
agrees that for a period of two (2) years following any termination of the employment of the Employee with the Company, Employee will not, directly or indirectly, without the prior written consent of the Company:  solicit, entice, persuade or induce any employee, consultant, agent or independent contractor of the Company or of any of its subsidiaries or Affiliates to terminate his or her employment with the Company or such subsidiary or Affiliate to become employed by any person, corporation or other
entity other than the Company or such subsidiary or Affiliate,  or approach any such employee, consultant, agent or independent contractor for any of the foregoing purposes, or hire any such employee, consultant, agent or independent contractor or authorize or assist in the taking of any such actions by any third party.

 

3.9           Confidentiality.  During the Term of Employment and continuously thereafter,
Employee shall keep secret and retain in strictest confidence and not use or disclose, furnish or make accessible to anyone outside the Company and any of its Affiliates, directly or indirectly, or use for the benefit of Employee or others except in conjunction with the business of the Company and the business of any of its subsidiaries or Affiliates, any Protected Information.  The term “Protected Information” shall mean trade secrets, confidential or proprietary information and all other
knowledge, technology, know-how, information, documents or materials owned, developed or possessed by the Company or any of its subsidiaries or Affiliates, whether in tangible or intangible form, pertaining to the business of the Company or any of its subsidiaries or Affiliates, including, but not limited to, research and development, operations, systems, databases, computer programs and software, designs, models, operating procedures, knowledge of the organization, products and services (including prices, costs,
sales or  content), processes, techniques, contracts, financial information or measures, business methods, future business plans, details of consultant contracts, new personnel acquisition plans, business acquisition plans, customers and suppliers (including identities of customers and prospective customers and suppliers, identities of individual contacts at business entities which are customers  or prospective customers or suppliers, preferences, businesses or habits), and business relationships.  Provided
however, that Protected Information shall not include information that shall become generally known to the public or the trade without violation of this Section 1.6.

 

                3.10        Company Ownership.  The results and proceeds
of Employee’s services hereunder, including, without limitation, any works of authorship resulting from Employee’s services during his employment with the Company or any of the Company’s Affiliates and any works in progress, shall be works-made-for-hire, and the Company shall be, and shall be deemed, the sole owner throughout the universe of any and all rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, with the right
to use the same in perpetuity in any manner the Company determines in its sole discretion without any further payment to Employee whatsoever.

 

 

 

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 If, for any reason, any of such results and proceeds shall not legally be a work-for-hire and/or there are any rights which do not accrue to the Company under the preceding sentence, then Employee hereby irrevocably assigns and agrees to assign any and all of Employee’s right, title and interest thereto, including, without limitation,
to any and all copyrights, patents, trade secrets, trademarks and/or other rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed to the Company, and the Company shall have the right to use the same in perpetuity throughout the universe in any manner the Company determines without any further payment to Employee whatsoever.  Provided however, that if the Company elects not to utilize any work(s) of authorship resulting from Employee’s
services during his Employment Term, the Company shall wave and release all rights to said work(s) and assign all rights thereto to Employee. Employee shall, from time to time, as may be requested by the Company, do any and all things which the Company may deem useful or desirable to establish or document the Company’s exclusive ownership of any and all rights in any such results and proceeds, including, without limitation, the execution of appropriate copyright and/or patent applications or assignments.  To
the extent Employee has any rights in the results and proceeds of Employee’s services that cannot be assigned in the manner described above, Employee unconditionally and irrevocably waives the enforcement of such rights.  This Section 3.10 is subject to, and shall not be deemed to limit, restrict, or constitute any waiver by the Company of any rights of ownership to which the Company may be entitled by operation of law by virtue of the Company’s being the employer of Employee.

 

                3.11         Litigation.  Employee agrees that, during
the Employment Term, for two (2) years thereafter and, if longer, during the pendency of any litigation or other proceeding, (i) Employee shall not communicate with anyone (other than his personal attorney(s) and/or tax advisor(s)) and, except to the extent necessary in the performance of Employee’s duties hereunder, with respect to the facts or subject matter of any pending or potential litigation, or regulatory or administrative proceeding involving the Company or any of its Affiliates, or any of their
officers, directors, shareholders, representatives, agents, employees, suppliers or customers, other than any litigation or other proceeding in which Employee is a party-in-opposition, without giving prior notice to the Company’s Board of Directors or Company Counsel and receiving a response, and (ii) in the event that any other party attempts to obtain information or documents from Employee with respect to matters possibly related to such litigation or other proceeding, Employee shall promptly so notify
the Company’s Board of Directors  or Company Counsel and await any response .

 

                3.12         No right to Give Interviews or to Write Books, Articles,
etc.    Employee agrees that during the   Employment Term and for a period of two (2) years thereafter, except with the Company’s prior written authorization, Employee shall not (i) give any interviews or speeches, or (ii) prepare or assist any person or entity in the preparation of any books, articles, television or motion picture productions or other creations, in either case, concerning the Company or any of its Affiliates, or any of their officers, directors,
shareholders, representatives, agents, employees, suppliers or customers.

 

                3.13        Return of Property.  All documents, date books,
recordings, or other property, whether tangible or intangible, including all information stored in electronic form, obtained or prepared by or for Employee and/or utilized by Employee in the course of Employee’s employment with the Company shall remain the exclusive property of the Company.

 

 

 

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                In the event of the termination of Employee’s employment for any reason, the Company reserves the right, to the extent permitted by law and in addition to any other remedy the Company may have, to deduct from any monies otherwise payable
to Employee by the Company the following:  (i) the full amount of any debt Employee owes to the Company or to any of the Company’s Affiliates at the time of or subsequent to the termination of Employee’s employment with the Company; and (ii) the value of the Company’s property which is retained in Employee’s possession after the termination of Employee’s employment with the Company.  In the event that the law of any state or other jurisdiction requires the consent
of an employee for such deductions, this Agreement and the Employee’s signature hereon shall serve, and be deemed to serve, as such consent. Employee acknowledges and agrees that the foregoing remedy shall not be the sole and/or exclusive remedy of the Company with respect to a breach of this Section 3.13.

 

                3.14        Non-Disparagement.  Employee agrees that he shall
not, during the Employment Term and for a period of two (2) years thereafter, criticize, ridicule or make any statement which disparages or is derogatory of the Company or any of its Affiliates, or of any of their officers, directors, shareholders, representatives, agents, employees, suppliers or customers.

 

                 3.15        Injunctive Relief/Specific Enforcement. The Company
has entered into this Agreement in order to obtain the benefit of Employee’s unique skills, talent, and experience.  Employee acknowledges that the services to be rendered by Employee are of a special, unique and extraordinary character and, in connection with such services, Employee will have access to confidential or proprietary information or trade secret vital to the Company’s business and the businesses of its subsidiaries and Affiliates.  By reason of this, Employee acknowledges,
consents and agrees that any violation of Sections 1.4 and 3.10 – 3.15 of this Agreement will result in irreparable harm to the Company and its subsidiaries or Affiliates, and that money damages will not provide adequate remedy to the Company, and that the Company shall be entitled to have those sections specifically enforced by any court having competent jurisdiction. Accordingly, Employee agrees that the Company may obtain injunctive and/or other equitable relief for any breach or threatened breach of
those sections, in addition to any other remedies, including the recovery of money damages from Employee available to the Company.

 

                3.16        Non-Renewal Notice.  The Company shall notify
Employee in writing in the event that the Company elects not to extend this Agreement as provide for in Section 1.3 herein.  If the Company gives Employee such notice less than three (3) months before the end of the Employment Term, Employee shall be entitled to receive his Salary as provided in Section 2.1, payable in accordance with the Company’s then-effective payroll practices, subject to applicable withholding requirements, for the period commencing after the end of  the Employment
Term which, when added to the portion of the Employment Term, if any, remaining when the notice is given or the termination occurs, equals three (3) months.  The payments provided for in this Section 3.16 are in lieu of any severance or income continuation or protection under any Company plan that may now or hereafter exist.Employee shall be required to mitigate the amount of any payment provided for in this Section 3.16 by seeking other employment or otherwise, and the amount of any such payment provided
hereunder shall be reduced by any compensation earned by Employee from any third person.

 

 

 

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3.17         The provisions of Sections 1.4 and 3.11-3.16 shall, without any limitation as to time, survive the expiration of Employee’s employment hereunder, irrespective of the reason
for any termination.

 

4.             Termination:

 

                4.1           Voluntary Termination.   Employee
may voluntarily terminate his employment with the Company at any time upon at least ninety (90) days prior written notice, in which case this Agreement shall terminate on the 90th day from such notice, or such longer period as may be consented to in writing by the Company.  Upon such termination, the Company shall have no further obligations under this Agreement, except to pay all amounts of Base Salary accrued, but unpaid,
at the effective date of voluntary termination, and all reasonable unreimbursed business-related expenses, if any.

 

                 4.2          Disability.  In the event of
the permanent disability (as hereinafter defined) of Employee during the Term of Employment, the Company shall have the right, upon written notice to Employee, to terminate Employee’s employment under this Agreement, effective upon the 30th calendar day following the giving of such notice (or such later day as shall be specified in such notice).  Upon the effectiveness of such termination, (i) the Company shall have
no further obligations under this Agreement, except as to pay and to provide, subject to applicable withholding, (A) all amounts of Base Salary accrued, but unpaid, at the effective date of termination, (B) a lump sum amount equal to Employee’s then annual Base Salary, (C) a pro rata portion of Employee’s Quarterly Bonus or Target Bonus, as applicable, and (D) all reasonable unreimbursed business-related expenses, and (ii) Employee shall have no further obligations hereunder other than those provided
for in Sections 1.4 and 3.18  of this Agreement.

 

All amounts payable to Employee pursuant to this Section 4.2 shall be payable within thirty  (30) days following the effective date of the termination of Employee’s employment.  For purposes of this Section, “permanent disability” shall be defined as any physical or mental disability or incapacity which
renders Employee incapable in any material respect of performing the services required of him in accordance with his obligations under Sections 1.1 and 1.5 for a period of  ninety  (90) days, consecutive or otherwise, in any three hundred and sixty (360) day period.

 

                4.3           Death.  In the event of the
death of Employee during the Term of Employment, this Agreement shall automatically terminate and the Company shall have no further obligations hereunder, except as to pay and provide to Employee’s beneficiary or other legal representative, subject to applicable withholding, (A) all amounts of Base Salary accrued but unpaid, at the date of death, (B) a pro rata portion of Employee’s Quarterly bonus or Target Bonus, as applicable, and (C) all reasonable unreimbursed business related expenses.  All
amounts payable to Employee pursuant to this Section 4.3 shall be payable within thirty (30) days following the Companies receipt of notice of date of death.

 

                4.4           Cause.  The Company shall have
the right, upon written notice to Employee, to terminate Employee’s employment under this Agreement for Cause (as hereinafter defined);  In the event of a termination for cause, this Agreement shall terminate and the Employee shall be removed from office effective as of the date specified by the Company in the notice, and (i) the Company shall have no further obligations hereunder, except to pay all amounts of Base Salary, reimburse all reasonable unreimbursed business-related expenses and pay
and provide all other benefits accrued to the date of termination and (ii) Employee shall have no further obligations hereunder, except for those provided in Sections 1.4 and 3.18 hereof;  provided, however, that nothing contained in this Section 4.4 shall constitute a waiver or release by the Company of any rights or claims it may have against Employee for actions or omissions which give rise to a termination under this Section  4.4.

 

 

 

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For purposes of this Agreement, the term “Cause” shall mean:

 

(i) Any act of fraud, embezzlement or dishonesty on the part of Employee with respect to the Company or any of its subsidiaries or Affiliates; or

 

(ii) Any material breach by Employee of his obligations under this Agreement;  or

 

(iii) A material breach of, or the failure or refusal by Employee to perform and discharge Employee’s duties, responsibilities or obligations under this Agreement (it being understood that no action or failure to act by Employee
shall be considered to be Cause if such action or failure to act shall have been taken by Employee in good faith); or

 

(iv) Gross negligence or willful misconduct in the performance of duties to the Company that has resulted or is likely to result in substantial and material damage to the Company; or

 

(v) Repeated unexplained or unjustified absence from the Company; or

 

(vi) A material and willful violation of any federal, state or local law; or

 

(vii) Conviction of a felony or a crime involving moral turpitude causing material harm to the standing and reputation of the Company, in each case as determined in good faith by the Board of Directors of the Company.

 

                4.5           Plan Benefits.  Upon any
termination of Employee’s employment hereunder, the Company shall pay Employee the amounts and shall provide all benefits generally available upon termination under any employee benefit plans, policies and practices of the Company, determined in accordance with the applicable terms and provisions of such plans, policies and practices.

 

5.             General

 

5.1           Governing Law. Venue The
laws of the State of Florida shall govern the interpretation, construction and applicability of this Agreement in any arbitration or judicial proceeding.

 

5.2           Attorneys’ Fees. In the event that any legal (judicial or arbitral) proceeding
is instituted in connection with any controversy arising out of this Agreement or the enforcement of any rights hereunder, the prevailing party (as defined by the courts of Florida) shall be entitled to recover, in addition to court and other costs, such sums as the court or arbitrator may decide are reasonable as attorneys’ fees.

 

 

 

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5.3           Waiver.  Neither party shall, by mere lapse of time, without giving notice
be deemed to have waived any breach by the other party of any of this Agreement.  Further, the waiver by either party of a particular breach of this Agreement shall be construed or deemed as a continuing waiver of such breach.

 

                5.4           Entire Agreement. The parties agree that this instrument
constitutes and contains the entire agreement between the parties concerning the subject matter and contents of this Agreement, and that this instrument supersedes all prior negotiations, proposed agreement, or understandings, if any, between the parties concerning any of the provisions or contents of this Agreement.  No amendment to this Agreement shall be effective unless it is in writing and signed by a duly authorized representative of each of the parties to this Agreement.

 

                5.5           Fair Meaning. The parties agree that the wording
of this Agreement shall be construed as a whole according to its fair meaning, and not strictly for or against the party that drafted this Agreement.

 

                5.6           Counterparts.  This Agreement
may be executed in any number of counterparts which shall be deemed an original, and all of which taken together constitutes one and the same Agreement.

 

                5.7           Severability.  The parties agree
that if any provision of this Agreement should ever be declared or determined by any court of competent jurisdiction to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby, and said illegal or invalid part, term or provision shall be automatically conformed to the law, if possible, or if not possible, be deemed to be stricken from this Agreement.

 

                5.8           Waiver/Estoppel. Any party hereto
may waive the benefit of any term, condition or covenant in this Agreement or any right or remedy at law or in equity to which any party may be entitled, but only by an instrument in writing signed by the parties to be charged. No estoppel may be raised against any party except to the extent the other parties rely on an instrument in writing, signed by the party to be charged, specifically reciting that the other parties may rely thereon. The parties' rights and remedies under and pursuant to this Agreement or
at law or in equity shall be cumulative and the exercise of any rights or remedies under any provision hereof or rights or remedies at law or in equity shall not be deemed an election of remedies; and any waiver or forbearance of any breach of this Agreement or remedy granted hereunder or at law or in equity shall not be deemed a waiver of any preceding or succeeding breach of the same or any other provision hereof or of the opportunity to exercise such right or remedy or any other right or remedy, whether or
not similar, at any preceding or subsequent time.

 

                5.9           Notices. Any notice that the Company is required
to give or may desire to give to Employee hereunder shall be in writing and may be served by delivering it to Employee, or by sending it to Employee by certified mail, return receipt requested (effective three days after mailing) or overnight delivery of the same by delivery service capable of providing verified receipt (effective the next business day), or facsimile (effective twenty-four hours after receipt is confirmed by person or machine), at the address set forth below, or such substitute address as Employee
may from time to time designate by notice to the Company. Any notice that Employee is required or may desire to serve upon the Company hereunder shall be in writing and may be served by delivering it personally or by sending it certified mail, return receipt requested or overnight delivery, or facsimile (with receipt confirmed by person or machine) to the address set forth below, or such other substitute address as the Company may from time to time designate by notice to Employee. Such notices by Employee shall
be effective at the same times as specified in this Section 5.9 for notices by the Company.

 

 

 

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The Company:

 

Calibert Explorations, Ltd.

645 Bayway Blvd.

Clearwater Beach, Florida, 33767

Phone:  727-442-2667

Facsimile: 727-683-9671

 

Employee:

 

Peter Schuster

645 Bayway Blvd.

Clearwater Beach, Florida, 33767

Phone:  727-442-2667

Facsimile: 727-683-9671

 

                5.10         Captions. The paragraph headings contained herein
are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

 

                5.11         No Partnership or Joint Venture. Nothing herein contained
shall constitute a partnership between or joint venture by the parties hereto.

 

                5.12         Assignability.  Successors.

 

                 (a) The obligations of employee may not be delegated and, except as expressly provided in this Section 5.12 relating to the designation of
beneficiaries, Employee may not, without the Company’s prior written consent thereto, assign, transfer, convey, pledge, encumber, hypothecate or otherwise dispose of this Agreement or any interest herein.  Any such attempted delegation or disposition shall be null and void and without effect.  Provided however, that Employee may assign all or any portion of his rights to receive compensation hereunder to any corporation at least fifty percent (50%) of the capital stock of which is owned
or controlled by Employee, to any other entity in which Employee owns or controls at least fifty percent (50%) of the total ownership interests, to trusts for the benefit of the family of Employee, to charitable trusts or to trusts for the benefit of any charitable purpose, or to any charity or non-profit organization. Notwithstanding any other provision hereof, Employee shall not be permitted to establish loan-out companies to provide his services to the Company and assign this Agreement thereto.

 

 

 

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                 (b) The Company and Employee agree that this Agreement and each of the Company’s rights and obligations hereunder may be assigned or
transferred by the Company to, and shall be assumed by and be binding upon, any Successor to the Company.  The term “Successor” shall mean any corporation or other business entity which succeeds to the assets or conducts the business of the Company, whether directly or indirectly, by purchase, merger, consolidation or otherwise.  In the event another corporation or other business entity becomes a Successor of the Company, then the Successor shall, by an agreement in form and substance
reasonably satisfactory to Employee, expressly assume and agree to perform this Agreement in the same manner and to the same extent as the Company would be required to perform if there had been no merger.

 

                5.13        No Mitigation; No Offset. Without limiting any other provision
hereof, the Company agrees that any income and other employment benefits received by Employee from any and all sources before, or during this Agreement shall in no way reduce or otherwise affect the Company's obligation to make payments and afford benefits hereunder.

 

6.             Arbitration.

 

                                (a)           In the event of any controversy arising from or concerning the interpretation of this
Agreement or its subject matter (including, without limitation, the interpretation, application, or enforceability of this Agreement or the arbitrability of the controversy), the parties agree that such controversy shall be resolved exclusively by binding arbitration before a single neutral arbitrator selected jointly by the parties.  The Company and Employee shall each be responsible for 50% of the fees and expenses of the arbitrator.  Each party shall be responsible for its own attorneys’
fees and any other costs occasioned by the arbitration, without regard to which party thereto prevails.  Provided however, that the arbitrator may award attorneys’ fees and costs to a party the terms of this Agreement.  The parties to the arbitration shall have all rights, remedies, and defenses available to them in a civil action before a court.  If, for any legal reason, a controversy arising from or concerning the interpretation, application, or enforceability of this Agreement
requires judicial intervention, the parties agree that the controversy shall be brought in the Pinellas County Superior Court or the U.S. District Court for the District of Florida.

 

                                (b)           The parties hereby waive and agree not to assert (by way of motion, as a defense
or otherwise) (a) any and all objections to jurisdiction that they may have under the laws of the State of Florida or the United States, and (b) any claim (i) that it or [he/she] is not subject personally to jurisdiction of such court, (ii) that such forum is inconvenient, (iii) that venue is improper, or (iv) that this Agreement or its subject matter may not for any reason be arbitrated or enforced as provided in this Section 6.0 (b).

 

                                (c)           Within ten (10) business days after receipt of the notice submitting a dispute or
controversy to arbitration, the parties shall attempt in good faith to agree upon an arbitrator to whom the dispute will be referred and on a joint statement of contentions. Each party hereby agrees that service of process in such action will be deemed accomplished and completed when a copy of the documents is sent in accordance with the notice provisions in Section 5.9 hereof.

 

 

 

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                                (d)           Discovery shall be conducted in accordance with the Florida Rules of Civil Procedure
regarding discovery. The arbitrator shall establish the discovery schedule promptly following submission of the joint statement of contentions (or the filing of the answer to the demand for arbitration) which schedule shall be strictly adhered to. To the extent the contentions of the parties relate to custom or practice in the Company’s business model, or the technical industry generally, or to accounting matters, each party may select an independent expert or accountant (as applicable) with substantial
experience in the industry segment involved to render an expert opinion or opinions. All decisions of the arbitrator shall be in writing.  The arbitrator shall make all rulings in accordance with Florida law and shall have authority equal to that of a Superior Court judge, to grant equitable relief in an action pending in Superior Court in which all parties have appeared.

 

                7.            Contractual Nomenclature. All references
herein to "Dollars" or "$" shall mean Dollars of the United States of America, its legal tender for all debts public and private. Wherever used herein and to the extent appropriate, the masculine, feminine or neuter gender shall include the other two genders, the singular shall include the plural, and the plural shall include the singular.

 

                 8.            Publicity. Neither party shall issue
any press release or announcement of or relating to the execution of, or any terms, provisions or conditions contained in this Agreement without the other party's prior approval of the content and timing of any such announcement or announcements.

 

 9.            Proof of Right to Work.  For purposes of federal immigration law,
Employee will be required to provide the Company with documentary evidence of his identity and eligibility for employment in the United States within three (3) business days of Employee’s date of hire; otherwise, the Company may terminate the employment relationship and this Agreement.

 

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

 

Calibert Explorations, Ltd., a Nevada Corporation

 

 

By:  DAVID SALTRELLI

        David Saltrelli, President, Director

 

 

Employee

 

By:  PETER SCHUSTER

        Peter Schuster, an Individual

 

 

 

  

12nn8k030810ex10_1.htm

    
                                                                                                                                                                              
EXHIBIT 10.1

       

      AMENDMENT
NO. 2 TO AMENDED AND RESTATED CREDIT AGREEMENT 

       

      This AMENDMENT
NO. 2 TO AMENDED AND RESTATED CREDIT AGREEMENT is made as of March 5,
2010 (this “Amendment”),
among NN,
INC., a Delaware corporation (the “US
Borrower”), the FOREIGN
BORROWERS party hereto (together with the US Borrower, the “Borrowers”
and each individually, a “Borrower”),
the LENDERS
party hereto and KEYBANK
NATIONAL ASSOCIATION, as Agent (as defined below).

       

      WITNESSETH:

       

      WHEREAS,
the Borrowers have been extended certain loans and other financial
accommodations pursuant to the Amended and Restated Credit Agreement, dated as
of March 13, 2009 (as heretofore amended, supplemented or otherwise modified
from to time, the “Credit
Agreement”), among the Borrowers, the Lenders party thereto and KeyBank
National Association, as administrative agent and collateral agent (the “Agent”);
and 

      
        WHEREAS,
the Lenders desire to amend the terms of the Credit Agreement as follows on the
terms set forth herein,

         

        NOW
THEREFORE, in consideration of the premises contained herein and other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Borrowers, the Agent and the Lenders do hereby agree as
follows:

         

        SECTION
1.  
DEFINED TERMS.

        Each term used and not
otherwise defined herein shall have the meaning ascribed to such term in the
Credit Agreement.  Unless specifically noted, for purposes of this
Amendment, the term “Lender” shall be deemed to include the Swing Line Lender
and each Fronting Lender. 

         

        SECTION
2.  
AMENDMENT TO CREDIT AGREEMENT.

                
  2.1      
Amendments
to Section 1.1.  Section 1.1 of the Credit Agreement is hereby
amended by replacing the definitions “Applicable Margin”, “Consolidated EBITDA”
and “Maximum Amount” with the following definitions to read in each case as
follows:

         

        “Applicable Margin”
means (a) four hundred and seventy five (475.00) basis points for LIBOR Fixed
Rate Loans, and (b) four hundred twenty five (425.00) basis points for Base Rate
Loans. 

         

        “Consolidated
EBITDA” means, for any period, as determined on a Consolidated basis and after
giving Acquisition Pro Forma Effect to any Acquisition made during such period,
Consolidated Net Earnings for such period, plus
(x) without duplication, the aggregate amounts deducted in determining such
Consolidated Net Earnings in respect of: (a) Consolidated Interest Expense,
(b) Consolidated Income Tax Expense, (c) Consolidated Depreciation and
Amortization Charges, and (d) non-recurring non-cash restructuring charges,
minus
(y) without duplication, the aggregate amounts included in determining such
Consolidated Net Earnings in respect of: (i) extraordinary or unusual non-cash
gains not incurred in the ordinary course of business and (ii) foreign exchange
gains as reported in Other Income according to GAAP and the positive
impact to Consolidated EBITDA resulting from converting Alternate Currency-based
income to Dollar-based income at an exchange rate exceeding $1.46 per €1.00, to
the extent such amounts together exceed $5,000,000 for
such period; provided
that, for purposes of calculating the Leverage Ratio and the applicable
financial covenants set forth in Section 5.7 hereof, Consolidated EBITDA shall
be deemed to be (A) negative ($3,513,000) for the fiscal quarter ended June 30,
2009, (B) negative ($3,382,000) for the fiscal quarter ended September 30, 2009,
and (C) $3,680,000 for the fiscal quarter ended December 31,
2009.

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        “Maximum Amount”
means, for each Lender, the amount set forth opposite such Lender’s name under
the column headed “Maximum Amount” as set forth on Schedule
1 hereto, subject to (x) decreases to reflect from time to time the then
applicable Total Commitment Amount, (y) decreases pursuant to Section 2.9(a)
hereof, and (z) assignments of interests pursuant to Section 11.10 hereof; provided
that the Maximum Amount for the Swing Line Lender shall exclude the Swing Line
Commitment (other than its pro rata share), and the Maximum Amount of the
Fronting Lender shall exclude the Letter of Credit Commitment (other than its
pro rata share).

         

        
           

        

        “Total Commitment
Amount” means Eighty Five Million Dollars ($85,000,000), as such amount may be
decreased pursuant to Section 2.9(a) hereof, the Total Commitment Amount in any
event reducing in the amount of $1,000,000 as of the end of each fiscal quarter
during the Commitment Period commencing with the fiscal quarter ending December
31, 2010.

         

                  
2.2       Amendments
to Section 1.1.  Section 1.1 of the Credit Agreement is hereby
amended by  adding thereto the definitions “Amendment No. 2”, “Attributable
Indebtedness”, and “Minimum Asset Coverage Ratio” to read in each case as
follows:

         

        “Amendment No. 2”
means that certain Amendment No. 2 to Amended and Restated Credit Agreement,
dated as of March 5, 2010.

         

        “Attributable
Indebtedness” means, on any date, in respect of any operating lease of a Person,
the capitalized amount of the remaining lease payments under such lease that
would appear on a balance sheet of such Person prepared as of such date in
accordance with GAAP if the obligations under such lease were accounted for as
Capitalized Lease Obligations.

         

        "Minimum Asset
Coverage Ratio”. means, as of any date of determination, determined on a
Consolidated basis, the ratio of: (a) the sum of Consolidated Accounts
Receivable (as defined by GAAP) of the US Borrower as of such date, plus
Consolidated Inventory (as defined by GAAP) of the US Borrower as of such
date to
(b) the outstanding Revolving Credit Exposure at such time. 

         

             
  2.3       Amendment
to Schedule I.  Annex I to the Credit Agreement is hereby deleted in
its entirety and new Schedule I attached hereto is hereby substituted
therefor.

         

         

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

                  
2.4       Amendments
to Section 5.7.  Section 5.7 of the Credit Agreement is hereby
amended: (x) by deleting clauses (a), (b), (c), (e) and (f) thereof each in its
entirety (with clause (d) thereof remaining unchanged by this Amendment) and
adding new clauses (a), (b), (c), (e) and (f) thereto to read as follows and (y)
adding new clause (g) to read as follows:

         

        Section
5.7        Financial
Covenants.

         

        (a)        Capitalization
Ratio.  US Borrower shall not suffer or permit the Capitalization
Ratio at any time to exceed: (i) 0.60 to 1.00 on the Restatement Closing Date
through June 29, 2010, (ii) 0.61 to 1.00 on June 30, 2010 through September 29,
2010, (iii) 0.62 to 1.00 on September 30, 2010 through March 30, 2011, (iv) 0.61
to 1.00 on March 31, 2011 through June 29, 2011 and (v) 0.60 to 1.00 on June 30,
2011 and thereafter.

         

        (b)        Interest
Coverage Ratio.  US Borrower shall not suffer or permit the Interest
Coverage Ratio to be less than: (i) 0.42 to 1.00 for the period ending March 31,
2010, (ii) 0.95 to 1.00 for the period ending June 30, 2010, (iii) 1.57 to 1.00
for the period ending September 30, 2010, (iv) 1.71 to 1.00 for the period
ending December 31, 2010, (v) 2.23 to 1.00 for the period ending March 31, 2011
and (vi) 2.76 for each period ending June 30, 2011 and thereafter.

         

        (c)        Minimum
EBITDA. US Borrower shall not suffer or permit Consolidated EBITDA, as
determined for the most recently completed four fiscal quarters of US Borrower,
to be less than:

         

                   
(i)         $603,000 for the period
ending March 31, 2010; 

         

                   
(ii)        $7,245,000 for the period ending
June 30, 2010;

         

                   
(iii)       $15,106,000 for the period ending
September 30, 2010;

         

                   
(iv)       $17,623,000 for the period ending
December 31, 2010

         

                   
(v)        $24,904,000 for the period ending
March 31, 2011; and

         

                   
(vi)       $32,077,000 for the period ending June
30, 2011 and thereafter.

         

        (e)        Leverage
Ratio.  US Borrower shall not suffer or permit at any time the
Leverage Ratio, as determined for the most recently completed four fiscal
quarters of US Borrower, to exceed: (i) 6.50 to 1.00 for the period ending
September 30, 2010, (ii) 5.57 to 1.00 for the period ending December 31, 2010,
(iii) 3.94 to 1.00 for the period ending March 31, 2011, and (iv) 2.77 to 1.00
for the period ending June 30, 2011.  This covenant shall be suspended and
shall not apply for the fiscal quarters of US Borrower ending March 31, 2010 and
June 30, 2010.

         

        (f)         Capital
Expenditures.  The Companies shall not invest in Consolidated
Capital Expenditures greater than: (i) $5,015,000 for the fiscal quarter ending
March 31, 2010, (ii) $8,178,000 on a cumulative basis for the two fiscal quarter
period ending June 30, 2010, (iii) $12,867,000 on a cumulative basis for the
three fiscal quarter period ending September 30, 2010, (iv) $16,705,000 on a
cumulative basis for the four fiscal quarter period ending December 31, 2010,
(v) $2,637,000 for the fiscal quarter ending March 31, 2011 and (vi) $5,274,000
on a cumulative basis for the two fiscal quarter period ending June 30, 2011;
provided that, the amount of permitted Consolidated Capital Expenditures for any
such fiscal period or cumulative fiscal period shall be reduced by the amount of
Attributable Indebtedness of operating leases entered into by the Companies in
such fiscal period; provided
that, Consolidated Capital Expenditures made with (A) net proceeds from a
Material Recovery Event used to replace, rebuild or restore fixed assets in
accordance with Section 2.11(c)(ii) hereof, and (B) net proceeds from asset
dispositions used to replace such assets in accordance with Section 2.11(c)(i)
hereof, shall not be included in calculating Consolidated Capital Expenditures
for purposes of this subsection (f).

         

         

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        (g)       
Minimum
Asset Coverage Ratio:  US Borrower shall
not suffer or permit as of the last day of any fiscal quarter the Minimum Asset
Coverage Ratio to be less than 1.05 to 1.00. 

         

                 2.5      
Amendments
to Section 5.8.  Section 5.8 of the Credit Agreement is hereby
amended by deleting clause (b) thereof in its entirety and adding new clause (b)
thereto to read as follows:

         

        (b)        any loans granted to or
Capitalized Lease Obligations entered into by any Company for the purchase or
lease of fixed assets (and refinancings of such loans or Capitalized
Lease Obligations), which loans and Capitalized Lease
Obligations shall only be secured by the fixed assets being purchased
or
leased, so long as the aggregate principal amount of all such loans and
Capitalized Lease Obligations for all Companies shall not exceed Six Million
Dollars ($6,000,000) at any time outstanding;

         

                    2.6      
Amendments
to Section 2.11.  Section 2.11(c) of the Credit Agreement is hereby
amended by deleting clause (iv) thereof in its entirety and adding new clause
(iv) thereto to read as follows:

         

                   
(iv)       Excess
Cash of All Domestic Companies.  If, at any time, the aggregate
unencumbered and unrestricted cash on hand of US Borrower and the Domestic
Subsidiaries plus Cash Equivalents of the US Borrower and the Domestic
Subsidiaries shall exceed Four Million Dollars ($4,000,000), US Borrower shall,
within three Business Days thereof, make a Mandatory Prepayment in an amount
equal to such excess (provided that US Borrower need not make such Mandatory
Prepayment if the Leverage Ratio for the most recently completed fiscal quarter
shall have been less than 2.50 to 1.00).

         

                 2.7      
Amendments
relating to certain Foreign Borrowers.  The following provisions of
the Credit Agreement are hereby amended as related to certain Foreign
Borrowers:

         

        (a)        Amendments
to Section 1.1.  Section 1.1 of the Credit Agreement is hereby
amended by deleting the definition “Company” in its entirety and adding the
definition “Company” to read as follows.

         

        “Company” means a
Borrower or a Subsidiary of a Borrower (other than Kugelfertigung Eltmann
GmbH).

         

         

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        (b)        Amendments
to Section 5.  Section 5 of the Credit Agreement is hereby amended
by adding Section 5.32 thereto to read as follows.

         

        Section
5.32     Restructure of
Foreign Borrowers.  Except as listed on Schedule
5.32, the Borrowers agree that the Borrowers will not commence a material
restructuring (including any insolvency action with respect thereto) of any
Foreign Borrower or any Subsidiary which was formerly a Foreign Borrower
(notwithstanding its release as a Foreign Borrower pursuant to Amendment No. 2
or otherwise as contemplated thereby), so long as any Obligations of such
Foreign Borrower or such Subsidiary are outstanding and for a period of twelve
(12) months following repayment of any such Obligations, unless such action is
required under order of any Governmental Authority or Requirement of Law after
the Borrowers have taken all steps reasonably available to prevent, object to or
stay such action.

         

        SECTION
3.   Release of Kugelfertigung Eltmann GmbH as a Foreign Borrower.

         

        Upon the Effective Time of
this Amendment, (a) Kugelfertigung Eltmann GmbH shall cease to be a Borrower for all
purposes under the Credit Agreement and shall no longer have future Advances or
Letters of Credit available to it thereunder, (b) all Liens granted by Kugelfertigung
Eltmann GmbH to the Administrative Agent to secure the Obligations shall
be deemed discharged and no longer effective and (c) Kugelfertigung
Eltmann GmbH shall no longer be liable for any of the Obligations as a
Borrower or Borrower Guarantor under the Credit Agreement or any other Loan
Document; provided that neither clause (a), (b) or (c) shall apply to any
provisions of the Credit Agreement (including, without limitation,
indemnification provisions) which, by their terms, specifically survive the
termination of the Credit Agreement.  Upon the Effective Time of this
Amendment, Kugelfertigung Eltmann GmbH is hereby authorized to file any and all
releases, instruments and other documents which are necessary to effect the
forgoing release and discharge under applicable Requirements of Law.  The
Lenders and Agent agree to execute any and all additional releases, instruments
and other documents necessary to effect the foregoing release and
discharge.  

         

        SECTION
4.  
REPRESENTATIONS AND WARRANTIES.

        Each Borrower hereby
represents and warrants to the Lenders and the Agent as follows:

         

        4.1       
This
Amendment. This Amendment has been duly and validly executed by an
authorized officer of such Borrower and constitutes the legal, valid and binding
obligation of such Borrower enforceable against such Borrower in accordance with
its terms.  The Credit Agreement, as amended by this Amendment, remains in
full force and effect and remains the valid and binding obligation of such
Borrower enforceable against such Borrower in accordance with its terms. 
The sum of any amendment fee, structuring fee, additional interest and other
consideration paid or to be paid by the Borrowers to the Senior Noteholders in
connection with the Indenture Amendment (as defined below) does not exceed the
sum of the amounts paid or to be paid by the Borrowers (a) pursuant to Sections
4.6 and 4.7 of this Amendment and (b) due to the increase in the Applicable
Margin set forth in this Amendment.

         

        4.2       
No
Default or Event of Default.  No Default or Event of Default now
exists under the Credit Agreement and, upon the effectiveness of this Amendment,
no Default or Event of Default will be existing and no Default or Event of
Default will occur as a result of the effectiveness of this
Amendment.

         

        4.3       
Restatement of Representations and Warranties.  Upon the
effectiveness of this Amendment, the representations and warranties of such
Borrower contained in the Credit Agreement, as amended by this Amendment, and
the Related Writings will be true and correct in all material respects on and as
of the date of this Amendment, except for representations and warranties that
were given as of a specific earlier date (which remain true and correct as of
such earlier date) or representations and warranties which became inaccurate
solely as a result of changes permitted under the Credit Agreement.

         

         

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

        SECTION
5.  
CONDITIONS TO EFFECTIVENESS

                   
This Amendment shall become effective as of the time (the Effective Time”) on
which each of the following conditions precedent shall have been
fulfilled:

         

        5.1       
This
Amendment.  The Agent shall have received from each Borrower and
requisite Lenders an original counterpart of this Amendment, in each case,
executed and delivered by a duly authorized officer of such Borrower or such
Lender, as the case may be.  For the avoidance of doubt, the execution of
this Amendment by the Lenders which are signatories hereto shall constitute
authorization by such Lenders to the Agent to execute as Bank Agent (as defined
in the Intercreditor Agreement) the First Amendment to Intercreditor (as defined
below). 

         

        5.2       
Amendment
to Amended and Restated Intercreditor Agreement.  The Agent shall
have received an original counterpart of the First Amendment to Amended and
Restated Intercreditor Agreement, Agreement, dated as of March 5, 2010 (the
“First Amendment to Intercreditor”), between the Bank Agent and the Noteholders,
duly executed and delivered by the Noteholders and acknowledged by the Borrower
Agent on behalf of all of the Borrowers.

         

        5.3
       Guarantor
Acknowledgement.  The Agent shall have received from each Guarantor
of Payment a counterpart of the Acknowledgement of Guarantors of Payment,
attached hereto as Annex
I, in each case, executed and delivered by a duly authorized officer of
such Guarantor of Payment.

         

        5.4       
Amendment
to Senior Notes Indenture.  The Borrowers shall have delivered to
the Agent a fully effective amendment to the Senior Notes Indenture, in form and
substance satisfactory to the Agent, incorporating in substance the amendments
set forth in Section
2 hereof (the “Indenture
Amendment”). 

         

        5.5       
Amendment
Fee.  The Borrowers shall have paid to the Agent for the ratable
benefit of the Lenders an amendment fee in the amount of $225,000.

         

        5.6       
Agent
Structuring Fee.  The Borrowers shall have paid to the Agent
for its own account an agent structuring fee in the amount of
$50,000.

         

        5.7       
Other
Fees and Expenses.  The Borrowers shall have paid all other
reasonable outstanding costs, expenses and fees of the Agent and its advisors,
service providers and legal counsels incurred in connection with the
documentation of this Amendment, in each case, to the extent
invoiced.

         

        5.8       
Other
Documents.  The Agent shall have received such other documents,
instruments or other materials as it shall have reasonably
requested.

         

        SECTION
6.     MISCELLANEOUS.

         

        6.1       
Governing
Law. This Amendment shall be governed by, and construed and enforced in
accordance with, the laws of the State of Ohio.

         

        6.2       
Severability.
Any provision of this Amendment which is prohibited or unenforceable shall be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions of this Amendment.

         

         

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

        6.3       
Counterparts.
This Amendment may be executed in any number of counterparts and by different
parties hereto and separate counterparts, each of which when so executed and
delivered shall be deemed to be an original, and all of which taken together
shall constitute but one and the same instrument.

         

        6.4
       Headings.
Section headings used in this Amendment are for the convenience of reference
only and are not a part of this Amendment for any other purpose.

         

        6.5
       Negotiations.
Each Borrower acknowledges and agrees that all of the provisions contained
herein were negotiated and agreed to in good faith after discussion with the
Agent and the Lenders and reviewed by counsel for such Borrower.

         

        6.6       
Expenses;
Agreement With Respect to the Senior Notes Indenture. The Borrowers shall
be responsible for all reasonable costs, expenses and fees of the Agent and its
advisors, service providers and legal counsels incurred in connection with the
documentation of this Amendment.  To the extent the Senior Noteholders are
compensated or will be compensated for executing and delivering the Indenture
Amendment, whether by fee, increased yield or otherwise, in an aggregate amount
in excess of the amount paid or to be paid by the Borrowers (a) pursuant to
Sections 4.6 and 4.7 of this Amendment and (b) due to the increase in the
Applicable Margin set forth in this Amendment, the Borrowers shall provide the
Agent and the Lenders with at least the equivalent economic consideration (it
being understood that the forgoing sentence shall in no way be deemed to
constitute a consent on the part of the Agent or the Lenders for any such
additional compensation to such Persons). 

         

        6.7       
Nonwaiver.
The execution, delivery, performance and effectiveness of this Amendment shall
not operate as, or be deemed or construed to be, a waiver: (i) of any right,
power or remedy of the Lenders or the Agent under the Credit Agreement (as
amended by this Amendment) or any Related Writing, or (ii) any term, provision,
representation, warranty or covenant contained in the Credit Agreement (as
amended by this Amendment) or any Related Writing.  None of the provisions
of this Amendment shall constitute, be deemed to be or construed as, a waiver of
any Default or Event of Default under the Credit Agreement (as amended by this
Amendment).

         

        6.8
       Reaffirmation. 
Each Borrower hereby (i) ratifies and reaffirms all of its payment and
performance obligations, contingent or otherwise, under the Credit Agreement (as
amended by this Amendment) and Related Writing to which it is a party
(including, without limitation, any Guaranty of Payment) and (ii) ratifies and
reaffirms its grant of security interests and Liens under such documents and
confirms and agrees that such security interests and Liens hereafter secure all
of the Obligations.  

         

        6.9       
Loan
Document.  This Amendment is a Loan Document.  

         

        [Signatures Follow on Next
Page]

         

         

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

      

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

       

                                                                                 BORROWERS:

       

                                                                                   

      
        
          	 	NN, INC.	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ James
      H. Dorton	 
	 	 	Name: James
      H. Dorton 	 
	 	 	
                  Title: 
      Vice President and CFO 

                	 
	 	 	 	 

        

      

                     

        
          	 	 	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ William
      C. Kelly, Jr.	 
	 	 	Name: 
      William C. Kelly, Jr. 	 
	 	 	
                  Title: 
      Director

                   

                   

                   

                   

                	 
	 	 	 	 

        

      

      
        
          	 	NN NETHERLANDS
      B.V.	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ William
      C. Kelly, Jr.	 
	 	 	Name: 
      William C. Kelly, Jr. 	 
	 	 	Title: 
      Director 	 
	 	 	 	 

        

      

         

       

      
        
          	 	KUGELFERTIGUNG
      ELTMANN GMBH	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ William
      C. Kelly, Jr.	 
	 	 	Name: 
      William C. Kelly, Jr. 	 
	 	 	
                  Title: 
      Director 

                   

                   

                	 
	 	 	 	 

        

      

      
        
          	 	NN EUROBALL IRELAND
      LIMITED	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ James
      H. Dorton	 
	 	 	Name: 
      James H. Dorton 	 
	 	 	
                  Title: 
      Director 

                   

                   

                	 
	 	 	 	 

        

      

      
        
          	 	NN SLOVAKIA,
      S.R.O.	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ William
      C. Kelly, Jr.	 
	 	 	Name: 
      William C. Kelly, Jr. 	 
	 	 	Title: 
      Director	 
	 	 	 	 

        

      

       

       

          

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
            	 	NN EUROPE
    S.P.A.	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	/s/ William
      C. Kelly, Jr.	 
	 	 	Name: 
      William C. Kelly, Jr. 	 
	 	 	Title: 
      Director	 
	 	 	 	 

          

        

      

       

       

               

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

                                                                                           AGENT
AND LENDERS:

       

       

      
        
          	 	KEYBANK NATIONAL ASSOCIATION,
      as Lender and as Agent	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ David
      A. Wild	 
	 	 	Name: 
      David A. Wild 	 
	 	 	Title: 
      Vice President 	 
	 	 	 	 

        

      

                                   

        
          	 	REGIONS  BANK, as
      Lender	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Jonathan
      C. Tutor	 
	 	 	Name: 
      Jonathan C. Tutor 	 
	 	 	Title: 
      Senior Vice President 	 
	 	 	 	 

        
    

        
          	 	BRANCH BANKING AND TRUST
      COMPANY, as Lender	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ R.
      Andrew Bean	 
	 	 	Name: 
      R. Andrew Bean 	 
	 	 	
                  Title: 
      Senior Vice President 

                   

                	 
	 	 	 	 

        

      

       

      
        
          	 	WELLS FARGO BANK NATIONAL
      ASSOCIATION, as Lender	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Nicholas
      Schoolar	 
	 	 	Name: 
      Nicholas Schoolar 	 
	 	 	Title: 
      Vice President 	 
	 	 	 	 

        

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      ANNEX
I

       

       

       

      ACKNOWLEDGEMENT
OF GUARANTORS OF PAYMENT

       

       

       

      Each undersigned hereby
acknowledges and agrees to the terms of the Amendment No. 2 to Amended and
Restated Credit Agreement, dated as of March 5, 2010 (the “Amendment”),
delivered in connection with the Amended and Restated Credit, dated as of March
13, 2009 (as amended, supplemented or otherwise modified from time to time, the
“Credit
Agreement”), by and among NN,
INC., a Delaware corporation (the “US
Borrower”), the FOREIGN
BORROWERS party thereto (together with the US Borrower, the “Borrowers”
and each individually, a “Borrower”),
various financial institutions (collectively, the “Lenders”
and individually, a “Lender”)
and KEYBANK
NATIONAL ASSOCIATION (“KeyBank”),
as administrative agent and collateral agent (KeyBank, in such capacity, the
“Agent”). 

       

      The undersigned hereby
confirms that, upon the effectiveness of the Amendment, each Guaranty of Payment
by the undersigned, and each Related Writing
to which the undersigned is a party, shall remain in full force and effect and
be the valid and binding obligation of the undersigned, enforceable against the
undersigned in accordance with its terms.   The undersigned hereby
further confirms that, upon the effectiveness of the Amendment, such Guaranty of
Payment shall continue to guaranty the Obligations (as defined therein).

       

                 
Capitalized terms used herein but not defined are used as defined in the Credit
Agreement.

       

              
THE DELTA RUBBER COMPANY

      
         

      

                                                  

              
By: /s/ 
James H.
Dorton                                   

                                   
Name: James
H.
Dorton                             

                                   
Title: Treasurer                                           

       

       

       

               WHIRLAWAY
CORPORATION

       

       

              
By:  /s/ James
H.
Dorton                                   

                                   
Name: 
James H.
Dorton                            

                                    Title: Treasurer                                           

       

       

       

                TRIUMPH
LLC

       

       

               By: 
/s/
James H. Dorton                                   

                                      
Name: James
H.
Dorton                              

                                      
Title: Treasurer                                              

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

               INDUSTRIAL
MOLDING CORPORATION

       

       

       

              
By:  /s/James
H. Dorton                                        

                                   
Name: James
H.
Dorton                                  

                                   
Title: Treasurer                                                

       

       

       

               NN
HOLDINGS B.V.

         

               By: 
NN International B.V., its sole managing director

       

       

              
By:  /s/William
C. Kelly, Jr.                                    

                                   
Name:  William
C. Kelly,
Jr.                             

                                       Title: Director                                                   

       

       

       

               NN
INTERNATIONAL B.V.

       

       

                                    
By:  /s/William
C. Kelly, Jr.                                    

                                       
Name: William
C. Kelly,
Jr.                              

                                       
Title: Director                                                   

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        SCHEDULE 1

         

        TO AMENDED AND
RESTATED CREDIT AGREEMENT

         

         

         

        
          	
                   

                   

                   

                   

                   

                   

                  LENDERS

                   

                	
                   

                   

                   

                   

                  COMMITMENT

                   

                  PERCENTAGE

                   

                	
                  REVOLVING

                  CREDIT

                   

                  COMMITMENT

                   

                  AMOUNT

                   

                	
                   

                   

                   

                   

                   

                   

                  MAXIMUM
      AMOUNT

                   

                
	
                  KeyBank
      National Association

                   

                	
                  29.629629633333%

                   

                	
                  $25,185,185.19

                   

                	
                  $25,185,185.19

                   

                
	
                  Regions
      Bank

                   

                	
                  27.777777777778%

                   

                	
                  $23,611,111.11

                   

                	
                  $23,611,111.11

                   

                
	
                  Branch
      Banking and Trust Company

                   

                	
                  27.777777777778%

                   

                	
                  $23,611,111.11

                   

                	
                  $23,611,111.11

                   

                
	
                  Wells Fargo
      Bank National Association

                   

                	
                  14.814814811111%

                   

                	
                  $12,592,592.59

                   

                	
                  $12,592,592.59

                   

                
	
                  Total
      Commitment Amount

                   

                	
                  100%

                   

                	
                  $85,000,000.00   

                   

                	
                  $85,000,000.00

                   

                

        

         

         

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
5.32

       

      TO AMENDED AND
RESTATED CREDIT AGREEMENT

       

       

       

                 
1.         NN Netherlands employee
reduction action (up to 52 employees)

       

       

       

                 
2.         NN Italy employee reduction
action (up to 34 employees)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]