Document:

EXHIBIT 10.1

 

Exhibit 10.1

PREMIUM STANDARD FARMS, INC.,

Issuer

PSF GROUP HOLDINGS, INC.,

PREMIUM STANDARD FARMS OF NORTH CAROLINA, INC.,

LUNDY INTERNATIONAL, INC.,

and

LPC TRANSPORT, INC.,

Guarantors

and

WILMINGTON TRUST COMPANY,

Trustee

_________________

Second Supplemental Indenture

Dated as of April 21, 2005

_________________

91/4% Senior Notes due 2011

 

 

SECOND SUPPLEMENTAL INDENTURE

          SECOND SUPPLEMENTAL INDENTURE (this “Second Supplemental Indenture”) dated as of April
21, 2005 among Premium Standard Farms, Inc., a Delaware corporation (the “Company”), PSF
Group Holdings, Inc., a Delaware corporation, Premium Standard Farms of North Carolina, Inc., a
Delaware corporation, Lundy International, Inc., a North Carolina corporation, and LPC Transport,
Inc., a Delaware corporation (the “Guarantors”), and Wilmington Trust Company, a Delaware
banking corporation, as trustee (the “Trustee”).

RECITALS

          WHEREAS, pursuant the Indenture (the “Original Indenture”) dated as of June 7, 2001
the Company issued its $175,000,000 91/4% Senior Notes due 2011 (the “Notes”), which Original
Indenture has been supplemented by a First Supplemental Indenture dated as of March 31, 2002 (the
Original Indenture as so supplemented, the “Indenture”);

          WHEREAS, the Company has offered to purchase all of the Notes (the “Offer”) and has
solicited consents (the “Solicitation”) to certain amendments to the Indenture pursuant to
the Company’s Offer to Purchase and Consent Solicitation Statement dated April 6, 2005;

          WHEREAS, Section 9.02 of the Indenture provides that the Company, when authorized by a Board
Resolution (as evidenced by a Board Resolution delivered to the Trustee), and the Trustee may amend
or supplement the Indenture with the written consent of the Holders of at least a majority in
aggregate principal amount of the Notes;

          WHEREAS, in accordance with Section 9.02 of the Indenture, the Company has obtained the
written consent to the proposed amendments to the Indenture from the Holders of at least a majority
in aggregate principal amount of the Notes; and

          WHEREAS, the Company is authorized to enter into this Supplemental Indenture by a Board
Resolution, and the Trustee has received an Opinion of Counsel and an Officers’ Certificate stating
that the execution of this Supplemental Indenture is permitted by the Indenture and all conditions
precedent under the Indenture have been satisfied.

          NOW, THEREFORE, for and in consideration of the foregoing premises, it is mutually covenanted
and agreed, for the equal and proportionate benefit of all Holders of the Notes, as follows:

AGREEMENTS

          SECTION 1.01. Capitalized Terms. Capitalized terms used herein without definition
shall have the meanings assigned to them in the Indenture.

          SECTION 2.01. Amendments to Indenture. At such time as the Company delivers written
notice to the Trustee that Notes representing at least a majority in aggregate principal amount of
the Notes validly tendered and not validly withdrawn pursuant to the Offer have been accepted for
purchase:

(a)      The following Sections of the Indenture, and any corresponding provisions in the Notes, shall
be deleted in their entirety and replaced with “Intentionally Omitted”:

 

 

	 	 	 
	Existing Section or	 	 
	Subsection Number	 	Caption
	 
	Section 4.03

	 	Limitation on Indebtedness
	Section 4.04

	 	Limitation on Restricted Payments
	Section 4.05

	 	Limitation on Dividend and Other Payment Restrictions Affecting
Restricted Subsidiaries
	Section 4.06

	 	Limitation on the Issuance and Sale of Capital Stock of
Restricted Subsidiaries
	Section 4.07

	 	Limitation on Issuances of Guarantees by Restricted Subsidiaries
	Section 4.08

	 	Limitation on Transactions with Stockholders and Affiliates
	Section 4.09

	 	Limitation on Liens
	Section 4.10

	 	Limitation on Sale-Leaseback Transactions
	Section 4.13

	 	Existence
	Section 4.14

	 	Payment of Taxes and Other Claims
	Section 4.15

	 	Maintenance of Properties and Insurance
	Section 4.16

	 	Notice of Defaults
	Section 4.18

	 	Commission Reports and Reports to Holders
	Section 4.19

	 	Waiver of Stay, Extension or Usury Laws
	Section 4.20

	 	Issuance of Subsidiary Guarantees by Restricted Subsidiaries

(b)      Section 4.11 of the Indenture shall be amended by deleting the text of such Section in its
entirety and replacing it with the following text:

          SECTION 4.11. Limitation on Asset Sales.

     In the event and to the extent that the Net Cash Proceeds received by the Company or any of
its Restricted Subsidiaries from one or more Asset Sales occurring on or after the Closing Date
in any period of 12 consecutive months exceed 10% of Adjusted Consolidated Net Tangible Assets
(determined as of the date closest to the commencement of such 12-month period for which a
consolidated balance sheet of the Company and its Subsidiaries has been filed with the
Commission or provided to the Trustee), then the Company shall or shall cause the relevant
Restricted Subsidiary to:

     (i) within twelve months after the date Net Cash Proceeds so received exceed 10% of
Adjusted Consolidated Net Tangible Assets,

     (A) apply an amount equal to such excess Net Cash Proceeds to permanently repay
unsubordinated Indebtedness of the Company or any Subsidiary Guarantor or Indebtedness of
any other Restricted Subsidiary, in each case owing to a Person other than the Company or
any Affiliate of the Company, or

     (B) invest an equal amount, or the amount not so applied pursuant to clause (A) (or
enter into a definitive agreement committing to so invest within 12 months after the date of
such agreement), in Replacement Assets, and

     (ii) apply (no later than the end of the 12-month period referred to in clause (i)) such
excess Net Cash Proceeds (to the extent not applied pursuant to clause (i) as extended in
accordance with any definitive agreement referred to in subclause (B)) as provided in the
following paragraphs of this Section 4.11.

     The amount of such excess Net Cash Proceeds required to be applied (or to be committed to
be applied) during such 12-month period as set forth in clause (i) of the preceding sentence and
not applied as so required by the end of such period shall constitute “Excess Proceeds.”

2

 

     If, as of the first day of any calendar month, the aggregate amount of Excess Proceeds not
theretofore subject to an Offer to Purchase pursuant to this Section 4.11 totals at least $10.0
million, the Company must commence, not later than the fifteenth Business Day of such month, and
consummate an Offer to Purchase from the Holders (and if required by the terms of any
Indebtedness that is pari passu with the Notes (“Pari Passu Indebtedness”), from the holders of
such Pari Passu Indebtedness) on a pro rata basis an aggregate principal amount of Notes (and
Pari Passu Indebtedness) equal to the Excess Proceeds on such date, at a purchase price equal to
100% of their principal amount, plus, in each case, accrued interest (if any) to the Payment
Date. If any Excess Proceeds remain after consummation of an Offer to Purchase, the Company or
any Restricted Subsidiary may use such Excess Proceeds for any purpose not otherwise prohibited
by this Indenture.

(c)      Section 4.17 of the Indenture shall be amended by deleting the text of such Section in its
entirety and replacing it with the following text:

          SECTION 4.17. Compliance Certificates.

     The Company shall deliver to the Trustee, within 90 days after the end of the last fiscal
quarter of each year, an Officers’ Certificate stating whether or not the signers know of any
Default or Event of Default that occurred during such fiscal quarter; such certificate shall
contain a certification from the principal executive officer, principal financial officer or
principal accounting officer of the Company that a review has been conducted of the activities
of the Company and its Restricted Subsidiaries and the Company’s and its Restricted
Subsidiaries’ performance under this Indenture and that the Company has complied with all
conditions and covenants under this Indenture. For purposes of this Section 4.17, such
compliance shall be determined without regard to any period of grace or requirement of notice
provided under this Indenture.

(d)      Section 5.01 of the Indenture shall be amended by deleting the text of such Section in its
entirety and replacing it with the following text:

          SECTION 5.01. When Company or Guarantors May Merge, Etc.

     Neither the Company nor PSF Group Holdings will consolidate with, merge with or into, or
sell, convey, transfer, lease or otherwise dispose of all or substantially all of its property
and assets (as an entirety or substantially an entirety in one transaction or a series of
related transactions) to, any Person or permit any Person to merge with or into it unless:

     (i) it shall be the continuing Person, or the Person (if other than it) formed by such
consolidation or into which it is merged or that acquired or leased such property and assets
of (the “Surviving Person”) shall be a corporation organized and validly existing under the
laws of the United States of America or any jurisdiction thereof and shall expressly assume,
by a supplemental indenture, executed and delivered to the Trustee, all of the Company’s or
PSF Group Holdings’ obligations, as the case may be, under this Indenture and the Notes;

     (ii) [Intentionally Omitted]

     (iii) [Intentionally Omitted]

     (iv) [Intentionally Omitted]

     (v) it delivers to the Trustee an Officers’ Certificate (if such transaction involves
the Company, attaching the arithmetic computations to demonstrate compliance with clauses
(iii) and

3

 

(iv)) and Opinion of Counsel, in each case stating that such consolidation, merger or
transfer and such supplemental indenture complies with this Section 5.01 and that all
conditions precedent provided for herein relating to such transaction have been complied
with; and

     (vi) each Guarantor, unless such Guarantor is the Person entering into such transaction
under this Section 5.01 shall have by amendment to its Note Guarantee confirmed that its
Note Guarantee shall apply to the obligations of the Company or the Surviving Person in
accordance with the Notes and this Indenture.

       Each Subsidiary Guarantor (other than any Subsidiary Guarantor whose Note Guarantee is to
be released in accordance with the terms of this Indenture) will not, and the Company will not
cause or permit any Subsidiary Guarantor to, consolidate with or merge with or into any Person
other than the Company or any other Subsidiary Guarantor unless:

     (i) the entity formed by or surviving any such consolidation or merger (if other than
the Subsidiary Guarantor) is a corporation organized and existing under the laws of the
United States or any State thereof or the District of Columbia;

     (ii) such entity assumes by supplemental indenture all of the obligations of the
Subsidiary Guarantor on its Note Guarantee; and

     (iii) [Intentionally Omitted]

     (iv) [Intentionally Omitted]

     (v) it delivers to the Trustee an Officers’ Certificate and Opinion of Counsel, in each
case stating that such consolidation, merger or transfer and such supplemental indenture
complies with this Section 5.01 and that all conditions precedent provided for herein
relating to such transaction have been complied with.

(e)      Section 6.01 of the Indenture shall be amended by deleting the text of such Section in its
entirety and replacing it with the following text:

          SECTION 6.01. Events of Default.

     The following events will be defined as “Events of Default” in this Indenture:

     (a) default in the payment of principal of (or premium, if any, on) any Note when the
same becomes due and payable at maturity, upon acceleration, redemption or otherwise;

     (b) default in the payment of interest on any Note when the same becomes due and
payable, and such default continues for a period of 30 days;

     (c) (i) default in the performance or breach of the provisions of this Indenture
applicable to (A) mergers, consolidations and transfers of all or substantially all of the
assets of the Company or PSF Group Holdings or (B) mergers or consolidations of any
Subsidiary Guarantor or (ii) the failure by the Company to make or consummate an Offer to
Purchase in accordance with Section 4.11 or Section 4.12;

     (d) [Intentionally Omitted]

4

 

     (e) [Intentionally Omitted]

     (f) [Intentionally Omitted]

     (g) a court having jurisdiction in the premises enters a decree or order for (A) relief
in respect of the Company, any Subsidiary Guarantor, PSF Group Holdings or any Significant
Subsidiary in an involuntary case under any applicable bankruptcy, insolvency or other
similar law now or hereafter in effect, (B) appointment of a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Company, any Subsidiary
Guarantor, PSF Group Holdings or any Significant Subsidiary or for all or substantially all
of the property and assets of the Company, any Subsidiary Guarantor, PSF Group Holdings or
any Significant Subsidiary or (C) the winding up or liquidation of the affairs of the
Company, any Subsidiary Guarantor, PSF Group Holdings or any Significant Subsidiary and, in
each case, such decree or order shall remain unstayed and in effect for a period of 60
consecutive days;

     (h) the Company, any Subsidiary Guarantor, PSF Group Holdings or any Significant
Subsidiary (A) commences a voluntary case under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect, or consents to the entry of an order for
relief in an involuntary case under any such law, (B) consents to the appointment of or
taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar official of the Company, any Subsidiary Guarantor, PSF Group Holdings or any
Significant Subsidiary or for all or substantially all of the property and assets of the
Company, any Subsidiary Guarantor, PSF Group Holdings or any Significant Subsidiary or (C)
effects any general assignment for the benefit of creditors; or

     (i) any Guarantor repudiates its obligations under its Note Guarantee or, except as
permitted by this Indenture, any Note Guarantee is determined to be unenforceable or invalid
or shall for any reason cease to be in full force and effect.

          SECTION 3.01. Amendment and Ratification. This Second Supplemental Indenture shall be
construed as an amendment and supplement to the Indenture and shall form a part thereof, and the
Indenture as modified hereby is ratified, approved and confirmed.

          SECTION 4.01. Trustee Not Responsible. All recitations or recitals contained in this
Second Supplemental Indenture are made by and on behalf of the Company and the Guarantors only, and
the Trustee is in no way responsible for the correctness of any statement herein contained or for
the validity or sufficiency of this Second Supplemental Indenture. The execution by the Trustee of
this Second Supplemental Indenture shall not be construed to be an approval or disapproval by the
Trustee of the advisability of the action being taken herein by the Company and the Guarantors. All
the provisions of the Indenture with respect to the rights, privileges, immunities, powers and duties of the Trustee
shall be applicable in respect hereof as fully and with like effect as if set forth herein in full
with such omissions, variations or insertions, if any, as may be appropriate to make the same
conform to this Second Supplemental Indenture.

          SECTION 5.01. Governing Law. This Second Supplemental Indenture shall be governed by
the laws of the State of New York.

          SECTION 6.01. Duplicate Originals. The parties may sign any number of copies of this
Second Supplemental Indenture. Each signed copy shall be an original, but all of them together
represent the same agreement.

5

 

SIGNATURES

          IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be
duly executed, all as of the date first written above.

	 	 	 	 	 
	 	 	PREMIUM STANDARD FARMS, INC.
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	/s/ Stephen A. Lightstone
	

	 	 	 	 
	

	 	 	 	      Stephen A. Lightstone
      Executive
Vice President, Chief Financial
      Officer
and Treasurer
	 
	 	 	 	 
	 	 	PREMIUM STANDARD FARMS OF

NORTH CAROLINA, INC.
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	/s/ Stephen A. Lightstone
	

	 	 	 	 
	

	 	 	 	      Stephen A. Lightstone
      Executive
Vice President, Chief Financial
      Officer
and Treasurer
	 
	 	 	 	 
	 	 	LUNDY INTERNATIONAL, INC.
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	/s/ Stephen A. Lightstone
	

	 	 	 	 
	

	 	 	 	      Stephen A. Lightstone
      Executive
Vice President, Chief Financial
      Officer
and Treasurer
	 
	 	 	 	 
	 	 	LPC TRANSPORT, INC.
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	/s/ Stephen A. Lightstone
	

	 	 	 	 
	

	 	 	 	      Stephen A. Lightstone
      Executive
Vice President, Chief Financial
      Officer
and Treasurer
	 
	 	 	 	 
	 	 	PSF GROUP HOLDINGS, INC.
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	/s/ Stephen A. Lightstone
	

	 	 	 	 
	

	 	 	 	      Stephen A. Lightstone
      Executive
Vice President, Chief Financial
      Officer
and Treasurer

 

 

	 	 	 	 	 
	 	 	WILMINGTON TRUST COMPANY, as Trustee
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	/s/ Kristin F. Long
	

	 	 	 	 
	

	 	Name:
	 	      Kristin F. Long
	

	 	Title:
	 	      Financial Services Officer<PAGE>

                                                                  EXHIBIT 10.2.1

                               AUTOCAM CORPORATION

                FIRST AMENDMENT TO CREDIT AND GUARANTY AGREEMENT

            This FIRST AMENDMENT TO CREDIT AND GUARANTY AGREEMENT (this "FIRST
AMENDMENT") is dated as of March 31, 2005 and entered into by and among Autocam
Corporation, a Michigan corporation (the "COMPANY"), Autocam France, Sarl, a
French societe a responsabilite limitee (limited liability company) ("EUROPEAN
BORROWER"), Titan Holdings, Inc., a Delaware corporation ("HOLDINGS"), the other
Credit Parties listed on the signature pages hereof, the financial institutions
party hereto (each individually a "LENDER" and collectively the "LENDERS"),
Citicorp North America, Inc., as General Administrative Agent and Collateral
Agent ("GENERAL ADMINISTRATIVE AGENT") and Citibank International Plc, as
European Administrative Agent ("EUROPEAN ADMINISTRATIVE AGENT"), and is made
with reference to that certain Credit and Guaranty Agreement dated as of June
21, 2004, by and among Company, European Borrower, Holdings, certain
subsidiaries of Company, as Guarantors, the Lenders party thereto from time to
time, Goldman Sachs Credit Partners L.P. ("GSCP") and Citigroup Global Markets,
Inc., as Joint Lead Arrangers and Joint Book Runners, GSCP, as Syndication
Agent, General Administrative Agent, European Administrative Agent, and Bank
One, NA, ING Capital, LLC, and National City Bank as Documentation Agents (the
"CREDIT AGREEMENT"). Capitalized terms used herein without definition shall have
the same meanings as set forth in the Credit Agreement.

                                    RECITALS

WHEREAS, the Company and the Lenders desire to amend the Credit Agreement to (i)
permit the Company to incur additional Term Loans or certain other Indebtedness
in the aggregate principal amount of up to $20,000,000, the proceeds of which
will be used to repay certain outstanding Revolving Loans, pay fees and
expenses, and, to the extent of any excess, for working capital and general
corporate purposes, (ii) amend the Interest Coverage Ratio covenant in Section
6.8(a) of the Credit Agreement, (iii) amend the Leverage Ratio covenant in
Section 6.8(b) of the Credit Agreement, (iv) add a Senior Leverage Covenant, (v)
amend the Applicable Margins, (vi) adjust the amortization schedule for the
European Term Loans, and (vii) address certain other matters set forth below.

NOW, THEREFORE, in consideration of the premises and the agreements, provisions
and covenants herein contained, the parties hereto agree as follows:

SECTION 1. AMENDMENTS TO CREDIT AGREEMENT

1.1   AMENDMENTS TO SECTION 1: DEFINITIONS AND INTERPRETATION.

      A. Section 1.1 of the Credit Agreement is hereby amended by adding thereto
the following definitions, which shall be inserted in proper alphabetical order:

            "ADDITIONAL TERM LOANS" means additional term loans made to Company
      and/or European Borrower pursuant to Section 2.1(c).

      "CONSOLIDATED SENIOR DEBT" means Consolidated Total Debt minus the
aggregate stated balance sheet amount of all Subordinated Indebtedness,
determined on a consolidated basis in accordance with GAAP.

<PAGE>

      "FIRST AMENDMENT" means that certain First Amendment to this Agreement,
dated as of March 31, 2005.

            "FIRST AMENDMENT EFFECTIVE DATE" means "First Amendment Effective
Date" as defined in the First Amendment.

      "NET MARGIN" is defined in Section 2.8(i).

      "NEW POLISH SUBSIDIARY" is defined in Section 6.1(b)(vii).

      "SECTION 1.2D EFFECTIVE DATE" means the "Section 1.2D Effective Date" as
      defined in the First Amendment.

            "SENIOR LEVERAGE RATIO" means, as of the last day of any Fiscal
Quarter, the ratio of (a) Consolidated Senior Debt as at such date to (b)
Consolidated Adjusted EBITDA for the four-Fiscal Quarter period ending on such
date.

      B.    (i)   The definition of "Applicable Margin" set forth in Section 1.1
of the Credit Agreement is hereby amended by deleting clause (i)(a) thereof in
its entirety and substituting the following therefor: "(a) 3.25% from the First
Amendment Effective Date until the later of (I) the date that is twelve months
after the First Amendment Effective Date, and (II) three business days after the
date on which General Administrative Agent has received the applicable financial
statements and a Compliance Certificate pursuant to Section 5.1(d) demonstrating
a Leverage Ratio of less than or equal to 4.50:1.00; provided that from and
after the Section 1.2D Effective Date, the Applicable Margin with respect to the
European Term Loans pursuant to this clause (a) shall be 3.75%, and".

(ii) From and after the Section 1.2D Effective Date, the definition of
"Applicable Margin" set forth in Section 1.1 of the Credit Agreement is hereby
further amended by deleting the table set forth therein and inserting the
following table in place thereof:

<TABLE>
<CAPTION>
                        APPLICABLE MARGIN FOR REVOLVING
LEVERAGE              LOANS, EUROPEAN REVOLVING LOANS AND     APPLICABLE MARGIN FOR EUROPEAN TERM
  RATIO                        U.S. TERM LOANS                              LOANS
----------------      -----------------------------------     -----------------------------------
<S>                   <C>                                     <C>
> or = 3.00:1.00                    3.00%                                   3.50%

< 3.00:1.00                         2.75%                                   3.25%
</TABLE>

      C. The definition of "Asset Sale" set forth in Section 1.1 of the Credit
Agreement is hereby amended by deleting the word "and" at the end of clause
(iii) thereof, inserting a "," at the end of clause (iii) thereof and adding the
following after clause (iv) thereof:

"and (v) the sale, transfer, lease, other disposition or relocation of equipment
by Bouverat or Frank & Pignard to the New Polish Subsidiary (or to a plant owned
or leased by such New Polish Subsidiary); provided, that, the aggregate fair
market value of such equipment when sold, transferred, leased, disposed of or
relocated by Bouverat or Frank & Pignard to the New Polish Subsidiary (or to a
plant owned or leased by such New Polish Subsidiary) and not sold, transferred,
leased, disposed of or relocated back to Bouverat or Frank & Pignard shall not
exceed $8,500,000, unless such equipment remains or becomes subject to a
perfected security interest (or analogous Lien) under applicable law reasonably
satisfactory to Administrative Agents and Syndication Agent securing either
Obligations under this Agreement or intercompany loans permitted hereby that are
pledged as Collateral to the Collateral Agent. The Collateral

<PAGE>

Agent shall (x) grant its consent to any transaction described in the foregoing
clauses (i) - (v), if consent is necessary to permit any such transaction under
any Collateral Document, and (y) at the request and sole expense of such
transferor, execute and deliver all releases or other documents reasonably
necessary or desirable for the release of the Liens created by any of the
Collateral Documents on the property that is the subject of such transaction."

      D. The definition of "Consolidated Interest Expense" set forth in Section
1.1 of the Credit Agreement is hereby amended by changing the reference to
"Section 2.11(d)" set forth therein to "Section 2.11(e)" and inserting the
following at the end thereof:

      ", any amounts paid in respect of Additional Term Loans or Indebtedness
      incurred pursuant to Section 6.1(s), in either case, before, on or about
      the date the same are incurred and amounts paid in connection with the
      First Amendment before, on or about the First Amendment Effective Date,
      including amounts paid to Lenders pursuant to Section 4E of the First
      Amendment."

      E. The definition of "French Restructuring Costs" set forth in Section 1.1
of the Credit Agreement is hereby amended by adding the words "and incremental
management costs" after the words "relocation costs" where they appear therein.

1.2   AMENDMENTS TO SECTION 2: LOANS AND LETTERS OF CREDIT.

      A. Section 2.1 of the Credit Agreement is hereby amended by inserting the
following as Section 2.1(c):

      "(c) Additional Term Loans. Company may from time to time, by notice to
      Administrative Agents, request that, on the terms and subject to the
      conditions contained in this Agreement, Lenders and/or other financial
      institutions not then a party to this Agreement that constitute Eligible
      Assignees make additional term loans to Company in Dollars and/or to
      European Borrower in Euros in an aggregate amount of up to $20,000,000 or
      its Dollar Equivalent minus the aggregate principal amount of Indebtedness
      theretofore or concurrently incurred under Section 6.1(s), which
      additional term loans may be made as increases in the amount of U.S. Term
      Loans or European Term Loans, as applicable, hereunder or as one or more
      additional tranches of Term Loans hereunder; provided, that (i) no Event
      of Default or Default shall have occurred and be continuing or result from
      the incurrence of such additional term loans, (ii) after giving effect to
      the incurrence of such additional term loans, Company is in pro forma
      compliance with the financial covenants set forth in Sections 6.8(a),
      6.8(b) and 6.8(d), (iii) the proceeds of such additional term loans are
      used to repay Revolving Loans then outstanding (without reduction of the
      Revolving Commitments), pay related fees and expenses and, to the extent
      of any excess, for working capital and general corporate purposes, (iv)
      the final stated maturity of the additional term loans shall be no earlier
      than the final stated maturity of the existing Term Loans, and (v) the
      weighted average life to maturity of any additional term loans made to
      Company shall not be less than the remaining weighted average life to
      maturity of the existing U.S. Term Loans and the weighted average life to
      maturity of any additional term loans made to European Borrower shall not
      be less than the remaining weighted average life to maturity of the
      existing European Term Loans (after giving effect to Section 1.2D of the
      First Amendment, to the extent the same is effective as of the date such
      additional term loans are incurred). Nothing contained in this paragraph
      or otherwise in this Agreement is intended to commit any Lender, Agent or
      Joint Lead Arranger to provide any portion of any such additional term
      loans.

<PAGE>

      If and to the extent that any Lenders and/or such other financial
      institutions agree, in their sole discretion, to provide any such
      additional term loans on the terms and conditions set forth herein, (i)
      the aggregate amount of the U.S. Term Loans and/or European Terms Loans,
      as applicable, shall be increased by the amount of the additional term
      loans agreed to be so provided or an additional tranche or tranches of
      Term Loans shall be established, (ii) if necessary, the Pro Rata Shares of
      the respective Lenders in respect of the U.S. Term Loans and/or European
      Term Loans and in the aggregate shall be proportionally adjusted, (iii)
      Company shall execute and deliver any additional Notes as any Lender may
      reasonably request and such modifications to the Credit Documents and
      customary deliverables as the Administrative Agents may reasonably
      request. In connection with the additional term loans provided for in this
      Section 2.1(c), conforming amendments and/or supplements shall be made to
      this Agreement and the other Credit Documents to reflect such additional
      term loans without the consent of any Lender not a lender of such
      additional term loans, including, without limitation, if applicable,
      conforming amendments and/or supplements: (i) to provide for the
      additional term loans as "U.S. Term Loans" and/or "European Term Loans",
      if applicable, or as new tranches of Term Loans hereunder and to share
      ratably in the benefits of this Agreement and the other Credit Documents
      with the other Term Loans made to the same Borrower under this Agreement,
      including in respect of Collateral and in the application of prepayments,
      (ii) subject to Section 2.8(i), to provide for the interest rates
      applicable to such additional term loans and amortization schedules for
      such additional term loans, and (iii) to include Lenders of the additional
      term loans in any determination of Lenders, Requisite Lenders, Requisite
      Class Lenders and Pro Rata Share as well as secured parties and/or
      beneficiaries under Collateral Documents. Notwithstanding anything in this
      Agreement expressed or implied to the contrary (including, without
      limitation in Section 10.5), nothing herein shall be construed to require
      consent from Lenders that are not lenders of such additional term loans to
      the incurrence of such term loans in compliance with this Section 2.1(c),
      and this Section 2.1(c) shall supersede any provisions in Section 10.5 to
      the contrary."

      B. Section 2.6 of the Credit Agreement is hereby amended by inserting the
following sentence after the first sentence of such Section:

            "The proceeds of any Additional Term Loans made on or after the
      First Amendment Effective Date shall be used by the Company to repay
      Revolving Loans (without any reduction in Revolving Loan Commitments), to
      pay fees and expenses related to the First Amendment and the incurrence of
      such Additional Term Loans, and, to the extent of any excess, for working
      capital and general corporate purposes."

      C. Section 2.8 of the Credit Agreement is hereby amended by inserting the
following as Section 2.8(i):

                  "(i) In the event that, at any time, the Net Margin applicable
            to any Additional Term Loan that is a Eurocurrency Rate Loan is more
            than 0.50% per annum in excess of the Applicable Margin applicable
            to any other Loans that are Eurocurrency Rate Loans pursuant to
            Section 2.8(a), then:

                        (w) subject to clause (z), below, the Applicable Margin
                  for all existing Loans that are Eurocurrency Rate Loans shall
                  automatically be increased to any extent required so that the
                  Applicable Margin for such existing Loans that are
                  Eurocurrency Rate Loans is 0.50% below stated margin over a
                  LIBOR or EURIBOR reference rate applicable to such Additional
                  Term Loans;

                        (x) subject to clause (z) below, the Applicable Margin
                  for all existing Loans that are Eurocurrency Rate Loans shall
                  automatically be further increased to the extent required (if
                  at all) so that the Applicable Margin for all such existing
                  Loans that are Eurocurrency Rate Loans is 0.50% below the Net
                  Margin applicable to such Additional Term Loans;

<PAGE>

                        (y) if, as of the date such Additional Term Loans are
                  incurred, the Section 1.2D Effective Date has occurred, the
                  Applicable Margin for all European Term Loans shall
                  automatically be further increased to the extent required (if
                  at all), so that the Applicable Margin for all European Term
                  Loans that are Eurocurrency Rate Loans is .50% above the
                  Applicable Margin applicable to all other Existing Loans as
                  adjusted pursuant to clauses (w) and (x), above; and

                        (z) if the applicable Additional Term Loans are incurred
                  by the European Borrower after the Section 1.2(D) Effective
                  Date, then (i) only the Applicable Margin for the existing
                  European Term Loans shall adjust pursuant to clauses (w) and
                  (x), above, and (ii) the Applicable Margin for all other
                  existing Loans that are Eurocurency Loans shall be
                  automatically increased to the extent required (if at all), so
                  that the Applicable Margin for such other Existing Loans is
                  .50% below the Applicable Margin for the existing European
                  Term Loans as adjusted pursuant to clause (z)(i).

            Upon any increase in the rate of interest in respect any existing
            Loans that are Eurocurrency Rate Loans pursuant to this Section
            2.8(i), the rate of interest applicable to such existing Loans that
            are Base Rate Loans shall automatically increase by the number of
            basis points equal to such basis point increase in the interest rate
            in respect of such existing Loans that are Eurocurrency Rate Loans.
            Any increases effected under clauses (w)-(z) above shall remain in
            effect to the extent necessary to ensure that (A) the Net Margin for
            the Additional Term Loans does not exceed the Applicable Margin for
            the existing Loans (or just the European Term Loans, to the extent
            clause (z), above, applies) by more than .50% and (B) to the extent
            the Section 1.2(D) Effective Date has occurred, that the Applicable
            Margin applicable to the European Term Loans is .50% above the
            Applicable Margin for the other existing Loans, notwithstanding any
            downward adjustment of the Applicable Margin applicable to any of
            the existing Loans pursuant to the definition thereof. The
            applicability of this Section and the amount of any increase in
            interest rate required thereby shall be determined in good faith by
            the Administrative Agents and the Syndication Agent, in consultation
            with the Borrowers, at the time any Additional Term Loans are made
            and at any time thereafter when the Applicable Margin (or the
            equivalent thereof in respect of Additional Term Loans) is adjusted.
            Any increase in interest rate required by this Section (as so
            determined), shall be effective automatically without any action or
            consent of any Borrower, Guarantor or Lender. "NET MARGIN" for
            purposes of any Additional Term Loan shall mean the sum of (a) the
            stated margin over a LIBOR or EURIBOR reference rate applicable (or
            which may be applicable, at the borrower's option) to such
            Additional Term Loan plus (b) any original issue discount or fees
            offered to lenders in respect of such Additional Term Loan
            (excluding any arrangement, structuring or other fees payable in
            connection therewith but not shared with all lenders of such
            Additional Term Loans) amortized equally over the period from the
            date such Additional Term Loan is incurred to the maturity date
            applicable to such Additional Term Loan; provided, that such
            original issue discount and/or fees shall not be amortized over a
            period of greater than four years."

      D. Section 2.12(a) of the Credit Agreement is hereby amended by deleting
the table contained therein in its entirety and substituting the following table
therefor:

<TABLE>
<CAPTION>
                                  U.S. TERM LOAN           EUROPEAN TERM LOAN
FISCAL QUARTER ENDING              INSTALLMENTS               INSTALLMENTS
---------------------             --------------           ------------------
<S>                               <C>                      <C>
September 30, 2004                 $   82,500                (euro)783,750
</TABLE>

<PAGE>

<TABLE>
<S>                                <C>                       <C>
December 31, 2004                  $    82,500               (euro)  783,750
March 31, 2005                     $    82,500               (euro)  783,750
June 30, 2005                      $    82,500               (euro)  783,750
September 30, 2005                 $    82,500               (euro)  783,750
December 31, 2005                  $    82,500               (euro)  783,750
March 31, 2006                     $    82,500               (euro)  783,750
June 30, 2006                      $    82,500               (euro)  783,750
September 30, 2006                 $    82,500               (euro)  783,750
December 31, 2006                  $    82,500               (euro)  783,750
March 31, 2007                     $    82,500               (euro)1,097,250
June 30, 2007                      $    82,500               (euro)1,097,250
September 30, 2007                 $    82,500               (euro)1,097,250
December 31, 2007                  $    82,500               (euro)1,097,250
March 31, 2008                     $    82,500               (euro)1,410,750
June 30, 2008                      $    82,500               (euro)1,410,750
September 30, 2008                 $    82,500               (euro)1,410,750
December 31, 2008                  $    82,500               (euro)1,410,750
March 31, 2009                     $    82,500               (euro)3,526,875
June 30, 2009                      $    82,500               (euro)3,526,875
September 30, 2009                 $    82,500               (euro)3,526,875
December 31, 2009                  $    82,500               (euro)3,526,875
March 31, 2010                     $    82,500               (euro)5,120,500
June 30, 2010                      $    82,500               (euro)5,120,500
September 30, 2010                 $ 7,755,000               (euro)5,120,500
December 31, 2010                  $ 7,755,000               (euro)5,120,500
March 31, 2011                     $ 7,755,000               (euro)5,120,500
</TABLE>

<PAGE>

<TABLE>
<S>                                <C>                       <C>
June 15, 2011                      $ 7,755,000               (euro) 5,120,500
                                   -----------
TOTAL                              $33,000,000               (euro)62,700,000
                                   ===========
</TABLE>

1.3   AMENDMENT TO SECTION 6: NEGATIVE COVENANTS.

      A. Section 6.1 of the Credit Agreement is hereby amended by deleting the
word "and" at the end of clause (q) thereof, deleting the period at the end of
clause (r), inserting "; and" at the end of clause (r), and inserting the
following clause "(s)" after clause (r):

            "(s) Indebtedness of Company and the Guarantor Subsidiaries in an
      aggregate principal amount not to exceed $20,000,000 minus the aggregate
      principal amount of Indebtedness theretofore or concurrently incurred
      pursuant to Section 2.1(c); provided, that (i) such Indebtedness shall be
      unsecured except for Liens on Collateral subordinated to the Liens thereon
      in favor of the Collateral Agent for the benefit of the Lenders securing
      the Obligations, (ii) the final maturity of such Indebtedness shall be no
      earlier than six months after the Term Loan Maturity Date, (iii) there
      shall be no scheduled principal payments for such Indebtedness prior to
      the maturity date thereof in excess of 1% of the initial aggregate
      principal amount thereof per annum, (iv) such Indebtedness shall otherwise
      be subject to customary terms and conditions, including intercreditor
      terms, satisfactory to Administrative Agents and the Syndication Agent
      (with Collateral Agent being hereby authorized to execute on behalf of the
      Secured Parties, an intercreditor agreement containing such satisfactory
      terms), (v) after giving effect to the incurrence of such Indebtedness,
      Company shall be in pro forma compliance with the financial covenants set
      forth in Sections 6.8(a), 6.8(b) and 6.8(d), (vi) no Default or Event of
      Default shall have occurred and be continuing or result from the
      incurrence of such Indebtedness, and (vii) the net proceeds of such
      Indebtedness shall be used to repay Revolving Loans then outstanding
      (without a reduction of the Revolving Commitments), to pay related fees
      and expenses, and, to the extent of any excess, for working capital and
      general corporate purposes."

      B. Section 6.1(b) of the Credit Agreement is hereby amended by deleting
the word "and" at the end of clause (v) thereof, deleting the period at the end
of clause (vi), inserting "; and" at the end of clause (vi), and inserting the
following clause "(vii)" after clause (vi):

"(vii) (A) Indebtedness of Autocam Europe or its wholly-owned subsidiary
organized under the laws of Poland (the "NEW POLISH SUBSIDIARY") to Company or a
Guarantor Domestic Subsidiary in an aggregate principal amount outstanding at
any time not to exceed $3,000,000 minus the amount of equity investments made
pursuant to the proviso in Section 6.7(e) and (B) Indebtedness of the New Polish
Subsidiary to Autocam Europe made with the proceeds of loans made to Autocam
Europe under clause (A); provided, that (w) Company shall have complied with
Section 5.10 with respect to the New Polish Subsidiary; (x) any such
intercompany loan is evidenced by an intercompany note (or other similar
agreement appropriate under the laws of the Netherlands or Poland, as
applicable, to evidence intercompany loans), which is pledged by the Company,
the applicable Guarantor Domestic Subsidiary or Autocam Europe, as applicable,
to secure the Obligations, (y) at such time as the aggregate amount of
intercompany loans made to the New Polish Subsidiary pursuant to Section
6.1(b)(vii)(A) and (B) equals or exceeds $2,000,000, such intercompany loans
shall be secured by assets of the New Polish Subsidiary in which security
interests can legally and practicably be taken without the incurrence of
excessive costs in relation to the value of the security afforded thereby as
determined by the Administrative Agents and Syndication Agent and without
causing adverse tax consequences for Company, reasonably determined by Company
to be material; and (z) the proceeds of intercompany loans made to Autocam
Europe under clause (A) above shall be used to make intercompany loans to the
New Polish Subsidiary pursuant to clause (B) above."

<PAGE>

      C. Section 6.2 of the Credit Agreement is hereby amended by (i) striking
the word "and" where it appears in Section 6.2(n) and adding ", and (vii)" to
the end thereof, and (ii) deleting the word "and" at the end of clause (p)
thereof, deleting the period at the end of clause (q), inserting "; and" at the
end of clause (q), and inserting the following clause "(r)" after clause (q):

            "(r) subordinated Liens on the Collateral securing Indebtedness
permitted pursuant to Section 6.1(s)."

<PAGE>

      D. Section 6.7(e) is hereby amended by striking the word "and" where it
appears therein and inserting ", and Section 6.1(b)(vii), provided that the
Company may make up to $1,000,000 of the Investments permitted under Section
6.1(b)(vii)(A) and the corresponding Investments permitted under Section
6.1(b)(vii)(B) in the form of equity Investments, rather than as intercompany
loans)" after the reference to "Section 6.1(b)(i)-(iv)" therein.

      E. Section 6.8(a) of the Credit Agreement is hereby amended by deleting
the table contained therein in its entirety and substituting the following table
therefor:

<TABLE>
<CAPTION>
FISCAL QUARTER ENDING              INTEREST COVERAGE RATIO
---------------------              -----------------------
<S>                                <C>
September 30, 2004                        2.20:1.00
December 31, 2004                         2.20:1.00
March 31, 2005                            2.10:1.00
June 30, 2005                             1.80:1.00
September 30, 2005                        1.80:1.00
December 31, 2005                         1.80:1.00
March 31, 2006                            1.95:1.00
June 30, 2006                             2.10:1.00
September 30, 2006                        2.20:1.00
December 31, 2006                         2.25:1.00
March 31, 2007                            2.25:1.00
June 30, 2007                             2.25:1.00
September 30, 2007                        2.25:1.00
December 31, 2007                         2.50:1.00
March 31, 2008                            2.50:1.00
June 30, 2008                             2.50:1.00
September 30, 2008                        2.50:1.00
December 31, 2008 and each                2.90:1.00
Fiscal Quarter thereafter
</TABLE>

<PAGE>

Notwithstanding the foregoing, from and after the Section 1.2D Effective Date,
the minimum required Interest Coverage Ratio shall decrease by .05 for the
Fiscal Quarter ending June 30, 2005 and each Fiscal Quarter thereafter (for
example, from and after the Section 1.2D Effective Date, the minimum required
Interest Coverage Ratio for the Fiscal Quarter ending June 30, 2005 shall be
1.75:1.00 rather than 1.80:1:00 as described in the table above)."

      F. Section 6.8(b) of the Credit Agreement is hereby amended by deleting
the table contained therein in its entirety and substituting the following table
therefor:

<TABLE>
<CAPTION>
FISCAL QUARTER ENDING                    LEVERAGE RATIO
---------------------                    --------------
<S>                                      <C>
September 30, 2004                          5.40:1.00
December 31, 2004                           5.40:1.00
March 31, 2005                              6.00:1.00
June 30, 2005                               6.65:1.00
September 30, 2005                          6.50:1.00
December 31, 2005                           6.50:1.00
March 31, 2006                              6.00:1.00
June 30, 2006                               5.50:1.00
September 30, 2006                          5.25:1.00
December 31, 2006                           5.00:1.00
March 31, 2007                              5.00:1.00
June 30, 2007                               5.00:1.00
September 30, 2007                          5.00:1.00
December 31, 2007                           4.50:1.00
March 31, 2008                              4.50:1.00
June 30, 2008                               4.50:1.00
September 30, 2008                          4.50:1.00
December 31, 2008                           3.75:1.00
March 31, 2009                              3.75:1.00
June 30, 2009                               3.75:1.00
September 30, 2009                          3.75:1.00
</TABLE>

<PAGE>

<TABLE>
<S>                                            <C>
December 31, 2009 and each Fiscal              3.25:1.00
Quarter thereafter
</TABLE>

      G. Section 6.8(d) of the Credit Agreement is hereby renumbered as Section
6.8(e), references in the Credit Agreement to "Section 6.8(d)" (other than
references inserted by the First Amendment) are hereby amended to read "Section
6.8(e)", and the following is inserted as Section 6.8(d) of the Credit
Agreement:

      "(d) Senior Leverage Ratio. Holdings shall not permit the Senior Leverage
Ratio as of the last day of any Fiscal Quarter, beginning with the Fiscal
Quarter ending March 31, 2005, to exceed the correlative ratio indicated:

<TABLE>
<CAPTION>
FISCAL QUARTER ENDING                    SENIOR LEVERAGE RATIO
---------------------                    ---------------------
<S>                                      <C>
March 31, 2005                                 3.50:1.00
June 30, 2005                                  3.50:1.00
September 30, 2005                             3.50:1.00
December 31, 2005                              3.50:1.00
March 31, 2006                                 3.25:1.00
June 30, 2006                                  3.25:1.00
September 30, 2006                             3.00:1.00
December 31, 2006                              3.00:1.00
March 31, 2007                                 3.00:1.00
June 30, 2007                                  3.00:1.00
September 30, 2007                             3.00:1.00
December 31, 2007                              2.50:1.00
March 31, 2008                                 2.50:1.00
June 30, 2008                                  2.50:1.00
September 30, 2008                             2.50:1.00
December 31, 2008                              2.25:1.00
March 31, 2009                                 2.25:1.00
June 30, 2009                                  2.25:1.00
</TABLE>

<PAGE>

<TABLE>
<S>                                            <C>
September 30, 2009                             2.25:1.00
December 31, 2009 and each Fiscal              2.00:1.00
Quarter thereafter
</TABLE>

1.4   AMENDMENT TO SECTION 9- AGENTS.

      A. Section 9.9(a) of the Credit Agreement is hereby amended by deleting
"and (ii)" and inserting the following immediately after "Autocam Corporation".

", (ii) Autocam Europe if and when it grants a Lien to Collateral Agent pursuant
to Dutch Law, and (iii)"

1.5   AMENDMENTS TO SECTION 10 - MISCELLANEOUS.

      A. Section 10.5(a) of the Credit Agreement is hereby amended by inserting
the following sentence at the end of such Section:

"Notwithstanding the foregoing, this Agreement and the other Credit Documents
may be amended (or amended and restated) solely with the written approval of the
Administrative Agents, Borrowers and the Lenders of the Additional Term Loans to
implement the Additional Term Loans permitted by Section 2.1(c)."

SECTION 2. WAIVER

      A. The Lenders hereby waive any noncompliance with Section 6.5 of the
Credit Agreement that may have occurred due to certain Option Merger
Consideration being paid after the Closing Date rather than on the Closing Date
as contemplated by the Credit Agreement.

      B. The waiver set forth in Section 2A (the "WAIVER") shall be limited
precisely as written and relate solely to any technical noncompliance by the
Company with Section 6.5 of the Credit Agreement that may have occurred in the
manner and to the extent described above, and nothing in this Waiver shall be
deemed to: (i) constitute a waiver of compliance by the Company with respect to
(a) Section 6.5 of the Credit Agreement in any other instance or (b) any other
term, provision or condition of the Credit Agreement or any other instrument or
agreement referred to therein; or (ii) prejudice any right or remedy that any
Agent or any Lender may now have (except to the extent such right or remedy was
based upon existing defaults that will not exist after giving effect to this
Waiver) or may have in the future under or in connection with the Credit
Agreement or any other instrument or agreement referred to therein.

SECTION 3. CREDIT PARTIES' REPRESENTATIONS AND WARRANTIES

In order to induce Lenders to enter into this First Amendment, each Credit Party
represents and warrants to each Lender that the following statements are true,
correct and complete:

                  (a) each Credit Party has all requisite corporate power and
      authority to enter into this First Amendment and to carry out the
      transactions contemplated by, and perform its obligations under, the
      Credit Agreement as amended by this First Amendment (the "AMENDED
      AGREEMENT");

                  (b) the execution and delivery of this First Amendment and the
      performance of the Amended Agreement have been duly authorized by all
      necessary corporate, and if required, stockholder, action on the part of
      each Credit Party;

<PAGE>

                  (c) the execution and delivery by each Credit Party of this\
      First Amendment and the performance by each Credit Party of the Amended
      Agreement do not and will not (i) violate the organizational documents of
      any Credit Party, (ii) violate any provision of any law or any
      governmental rule or regulation applicable to any Credit Party, or any
      order, judgment or decree of any court or other agency of government
      binding on any Credit Party, (iii) conflict with, result in a breach of or
      constitute (with due notice or lapse of time or both) a default under, or
      give rise to any right to accelerate or to require a prepayment,
      repurchase or redemption under any Contractual Obligation of any Credit
      Party, (iv) result in or require the creation or imposition of any Lien
      upon any of the properties or assets of any Credit Party (other than Liens
      created under any of the Credit Documents in favor of Collateral Agent on
      behalf of Lenders and other Liens permitted under the Amended Agreement),
      or (v) require any approval of stockholders or any approval or consent of
      any Person under any Contractual Obligation of any Credit Party or any of
      its Subsidiaries, except with respect to the foregoing clauses (ii), (iii)
      and (v) above, such violations, conflicts, breaches, defaults or failures
      to obtain approvals or consents which could not reasonably be expected to
      have, individually or in the aggregate, a Material Adverse Effect;

                  (d) the execution and delivery by any Credit Party of this
      First Amendment and the performance by any Credit Party of the Amended
      Agreement do not and will not require any registration with, consent or
      approval of, or notice to, or other action to, with or by, any federal,
      state or other governmental authority or regulatory body, except for
      registrations, consents, approvals, notices and other actions the failure
      to obtain or take have not and could not reasonably be expected to have,
      individually or in the aggregate, a Material Adverse Effect;

                  (e) this First Amendment and the Amended Agreement have been
      duly executed and delivered by each Credit Party and are the legally valid
      and binding obligations of each Credit Party, enforceable against such
      Credit Party in accordance with their respective terms, except as may be
      limited by bankruptcy, insolvency, reorganization, moratorium or similar
      laws relating to or limiting creditors' rights generally or by equitable
      principles relating to enforceability;

                  (f) after giving effect to Sections 1 and 2 hereof, the
      representations and warranties contained in Section 4 of the Credit
      Agreement are and will be true, correct and complete in all material
      respects on and as of the date hereof and the First Amendment Effective
      Date (as defined below) to the same extent as though made on and as of
      such dates, except (i) to the extent such representations and warranties
      specifically relate to an earlier date, in which case they were true,
      correct and complete in all material respects on and as of such earlier
      date, (ii) the reference to "Projections" in Section 4.8 of the Credit
      Agreement shall be deemed to refer to the revised projections delivered to
      the Agents and the Lenders in connection with this First Amendment, and
      (iii) the reference in Section 4.9 of the Credit Agreement to "December
      31, 2003" shall be deemed to be a reference to "December 31, 2004".

            (ii) after giving effect to Sections 1 and 2 hereof, no event has
occurred and is continuing that would constitute an Event of Default or a
Default.

SECTION 4. CONDITIONS TO EFFECTIVENESS

      Sections 1 and 2 of this First Amendment (other than Section 1.2D hereof)
shall become effective only upon the satisfaction of all of the following
conditions precedent, but in no event earlier than April 8, 2005 (the later of
the date of satisfaction of such conditions and April 8, 2005 being referred to
herein as the "FIRST AMENDMENT EFFECTIVE DATE"):

     A. REPRESENTATIONS AND WARRANTIES. On the First Amendment Effective Date,
(a) after giving effect to Sections 1 and 2 hereof, the representations and
warranties contained in Section 3 hereof shall be true and correct as of such
date, as though made on and as of such date; (b) after giving effect to Sections
1 and 2 hereof, no Default or Event of Default shall then exist; and (c) the
Company shall deliver to General Administrative Agent a certificate signed by a
responsible officer of Company confirming the foregoing.

<PAGE>

      B. CORPORATE DOCUMENTS. On or before the First Amendment Effective Date,
each Credit Party shall have delivered to Lenders (or to General Administrative
Agent for Lenders with sufficient originally executed copies, where appropriate,
for each Lender and its counsel) the following, each, unless otherwise noted,
dated the First Amendment Effective Date:

                  (a) An officer's certificate of such Credit Party certifying
      that organizational documents of such Credit Party as delivered to General
      Administrative Agent on the Closing Date, are in full force and effect and
      have not been amended or modified in any respect since the Closing Date;

                  (b) Resolutions of its Board of Directors or other authorizing
      body or Person approving and authorizing the execution, delivery and
      performance of this First Amendment, certified as of the First Amendment
      Effective Date by its secretary or an assistant secretary as being in full
      force and effect without modification or amendment;

                  (c) Signature and incumbency certificates of the officers of
      such Person executing this First Amendment; and

                  (d) Executed originals of this First Amendment from Holdings,
      Company, European Borrower and each Credit Party.

      C. LITIGATION. No action, suit, investigation, litigation or proceeding by
any entity (private or governmental) before any court, arbitration or
governmental authority shall be pending or, to the knowledge of Company,
threatened with respect to this First Amendment, any other Credit Document or
any other documentation executed in connection herewith or with respect to the
transactions contemplated hereby, or which could reasonably be expected to have
a Material Adverse Effect.

      D. COMPLETION OF PROCEEDINGS. All corporate and other proceedings taken or
to be taken in connection with the transactions contemplated hereby and all
documents incidental thereto not previously found acceptable by General
Administrative Agent, acting on behalf of Lenders, Syndication Agent and their
counsel shall be satisfactory in form and substance to General Administrative
Agent, Syndication Agent and such counsel, and General Administrative Agent and
such counsel shall have received all such counterpart originals or certified
copies of such documents as General Administrative Agent may reasonably request.

      E. FEES AND EXPENSES. Company shall have paid all reasonable fees and
expenses of Administrative Agents and Syndication Agent (including, without
limitation, the reasonable fees and disbursements of O'Melveny & Myers LLP) in
connection with this First Amendment and the documents and transactions related
hereto, and any fees separately agreed upon among Company and Syndication Agent.
The General Administrative Agent shall have received payment, for the account of
each Lender that executes this First Amendment on or before 5:00 p.m. Eastern
Standard Time on April 11, 2005, of an amendment fee equal to 0.25% of the sum
of such Lender's Revolving Exposure and the principal amount of Term Loans held
by such Lender on the First Amendment Effective Date.

      F. REQUISITE LENDER APPROVAL. On or prior to the First Amendment Effective
Date, the Requisite Lenders shall have executed and delivered counterparts to
this First Amendment.

SECTION 5. CONDITIONS TO EFFECTIVENESS - SECTION 1.2(D)

Section 1.2D of this Amendment shall become effective only upon the satisfaction
of all of the following conditions precedent (the date on which such conditions
precedent are satisfied being the "SECTION 1.2D EFFECTIVE DATE"):

      A. FIRST AMENDMENT EFFECTIVE DATE. The First Amendment Effective Date
shall have occurred.

<PAGE>

      B. AFFECTED LENDER APPROVAL. Each Lender with European Term Loan Exposure
shall have executed and delivered a counterpart to this First Amendment.

SECTION 6. ACKNOWLEDGEMENT AND CONSENT

Each of Company, Holdings, European Borrower and each Guarantor (each
individually a "CREDIT SUPPORT PARTY" and collectively, the "CREDIT SUPPORT
PARTIES") has read this First Amendment and consents to the terms hereof and
agrees that all references to the Credit Agreement in all Credit Documents shall
be deemed to mean the Credit Agreement as amended by this First Amendment, and
each Credit Support Party further hereby confirms and agrees that the
obligations of such Credit Support Party under, and the Liens granted by such
Credit Support Party as collateral security for the indebtedness, obligations
and liabilities evidenced by the Credit Agreement and the other Credit Documents
pursuant to, each of the Credit Documents to which such Credit Support Party is
a party shall not be impaired by the effectiveness of this First Amendment and
each of the Credit Documents to which such Credit Support Party is a party is,
and shall continue to be, in full force and effect and are hereby confirmed and
ratified in all respects.

SECTION 7. MISCELLANEOUS

      A. REFERENCE TO AND EFFECT ON THE CREDIT AGREEMENT AND THE OTHER CREDIT
DOCUMENTS.

            (i) On and after the effective date of this First Amendment, each
reference in the Credit Agreement to "this Agreement", "hereunder", "hereof",
"herein" or words of like import referring to the Credit Agreement and each
reference in the other Credit Documents to the "Credit Agreement", "thereunder",
"thereof" or words of like import referring to the Credit Agreement shall mean
and be a reference to the Credit Agreement as amended hereby.

            (ii) Each reference in other Credit Documents to defined terms in
the Credit Agreement shall be to the defined terms in the Credit Agreement as
amended hereby.

            (iii) Except as specifically amended by this First Amendment, the
Credit Agreement and the other Credit Documents shall remain in full force and
effect and are hereby ratified and confirmed.

            (iv) The execution, delivery and performance of this First Amendment
shall not, except as expressly provided herein, constitute a waiver of any
provision of, or operate as a waiver of any right, power or remedy of any
Administrative Agent or any Lender under the Credit Agreement or any of the
other Credit Documents.

      B. FEES AND EXPENSES. Company acknowledges that all costs, fees and
expenses as described in Section 10.2 of the Credit Agreement incurred by Agents
and their counsel with respect to this First Amendment and the documents and
transactions contemplated hereby shall be for the account of Company.

      C. HEADINGS. Section headings in this First Amendment are included herein
for convenience of reference only and shall not constitute a part of this First
Amendment for any other purpose or be given any substantive effect.

      D. APPLICABLE LAW. THIS FIRST AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING
WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF
NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

      E. COUNTERPARTS. This First Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall

<PAGE>

be deemed an original, but all such counterparts together shall constitute but
one and the same instrument; signature pages may be detached from multiple
separate counterparts and attached to a single counterpart so that all signature
pages are physically attached to the same document.

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

                                               AUTOCAM CORPORATION

                                               By: _____________________________

                                               Name:  Warren A. Veltman

                                               Title:  Treasurer and Secretary

                                               AUTOCAM FRANCE, SARL

                                               By: _____________________________

                                               Name:  John C. Kennedy

                                               Title:  Co-Manager

                                               TITAN HOLDINGS, INC.

                                               By: _____________________________

                                               Name:  Warren A. Veltman

                                               Title:  Treasurer and Secretary

<PAGE>

                                               AUTOCAM-PAX, INC.

                                               By: _____________________________

                                               Name: Warren A. Veltman

                                               Title: Treasurer and Secretary

<PAGE>

                                               AUTOCAM SOUTH CAROLINA, INC.

                                               By: _____________________________

                                               Name:  Warren A. Veltman

                                               Title:  Treasurer and Secretary

                                               AUTOCAM GREENVILLE, INC.

                                               By: _____________________________

                                               Name:  Warren A. Veltman

                                               Title:  Treasurer and Secretary

                                               AUTOCAM ACQUISITION, INC.

                                               By: _____________________________

                                               Name:  Warren A. Veltman

                                               Title:  Treasurer and Secretary

                                               AUTOCAM LASER TECHNOLOGIES, INC.

                                               By: _____________________________

                                               Name:  Warren A. Veltman

                                               Title:  Treasurer and Secretary

<PAGE>

                                               AUTOCAM-HAR, INC.

                                               By: _____________________________

                                               Name:  Warren A. Veltman

                                               Title:  Treasurer and Secretary

                                               AUTOCAM INTERNATIONAL, LTD.

                                               By: _____________________________

                                               Name:  Warren A. Veltman

                                               Title:  Treasurer and Secretary

                                               AUTOCAM INTERNATIONAL SALES
                                               CORPORATION

                                               By: _____________________________

                                               Name:  Warren A. Veltman

                                               Title:  Treasurer and Secretary

<PAGE>

                                               AUTOCAM EUROPE B.V.

                                                       BY:  AUTOCAM CORPORATION,
                                                       AS MANAGING DIRECTOR

                                               By: _____________________________

                                               Name:  Warren A. Veltman

                                               Title:  Treasurer and Secretary

                                               GOLDMAN SACHS CREDIT
                                               PARTNERS L.P.,

                                               as Syndication Agent and a Lender

                                               By: _____________________________

                                               Name:

                                               Title:

<PAGE>

                                    CITICORP NORTH AMERICA, INC.,

                                    as General Administrative Agent, Collateral
                                    Agent, and a Lender

                                    By: _____________________________

                                    Name:  David Bouton

                                    Title:  Vice President

<PAGE>

                                               CITIBANK INTERNATIONAL PLC,

                                               as European Administrative Agent

                                               By: _____________________________

                                               Name:

                                               Title:

<PAGE>

LENDERS:

                                               _________________________________
                                                        [Name of Lender]

                                               By: _____________________________

                                               Name: ___________________________

                                               Title: __________________________

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