Document:

nn8k030810ex10_2.htm

    
                                                                                                                                                                                                                           EXHIBIT
10.2

       

       

       

       

       

      SECOND AMENDMENT TO SECOND
AMENDED AND RESTATED 

       

      NOTE PURCHASE
AGREEMENT AND SHELF AGREEMENT

       

       

       

                  THIS
SECOND AMENDMENT TO SECOND AMENDED AND RESTATED NOTE PURCHASE AGREEMENT AND
SHELF AGREEMENT (this “Amendment”),
is made and entered into as of March 5, 2010, by and among NN, INC., a Delaware
corporation (the “Company”),
certain of its subsidiaries named below (the “Guarantors”),
The Prudential Insurance Company of America (together with its successors and
assigns, “Prudential”)
and the other holders of the Notes from time to time party to the Note Agreement
(as defined below) (collectively, and together with their successors and
assigns, the “Noteholders”).

       

       

       

      W I
T
N
E
S
S
E
T
H:

       

       

       

      WHEREAS, the
Company, the Guarantors and the Noteholders are parties to a certain Second
Amended and Restated Note Purchase Agreement and Shelf Agreement, dated as of
March 13, 2009, as amended by that First Amendment to Second Amended and
Restated Note Purchase Agreement and Shelf Agreement, dated as of July 31, 2009
(as further amended, restated, supplemented or otherwise modified from time to
time, the “Note
Agreement”); capitalized terms used herein and not otherwise
defined shall have the meanings assigned to such terms in the Note
Agreement;

       

      WHEREAS, the
Company has requested certain amendments to the Note Agreement, and subject to
the terms and conditions hereof, the Noteholders are willing to agree to such
amendments; 

       

      NOW, THEREFORE, for
good and valuable consideration, the sufficiency and receipt of all of which are
acknowledged, the Company and the Noteholders agree as follows:

       

       

       

      1.         Amendments
to Note Agreement.  The Note Agreement is amended as
follows:

       

                 
(a)        Section
8.8.     Section 8.8 of the Note Agreement is amended
by replacing the references to Sections 8.3(c) and 8.3(e) appearing in Section
8.8(b) with references to Sections 8.8(c) and 8.8(e).  

       

                 
(b)        Section
10.2.   Section 10.2 of the Note Agreement is amended by
replacing such Section in its entirety with the following:

       

                       
Section 10.2     Leverage
Ratio.  The Obligors shall not permit the
Leverage Ratio, determined at the end of each quarterly fiscal period of the
Company set forth below for the four fiscal quarter period ending on such date
of determination, taken as a single accounting period, to be greater
than:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      	
              Four
      fiscal quarter period ending date:

            	
              Maximum Leverage Ratio:

            
	
              September 30, 2010

            	
              6.50:1.00

            
	
              December 31, 2010

            	
              5.57:1.00

            
	
              March 31, 2011

            	
              3.94:1.00

            
	
              June 30, 2011 

            	
              2.77:1.00

            
	
              September 30, 2011 and thereafter

            	
              2.75:1.00

            

       

       

      This covenant shall
be suspended and shall not apply for the fiscal quarters ending March 31, 2010
and June 30, 2010.

       

                 
(c)        Section
10.3.   Section 10.3 of the Note Agreement is amended by
replacing such Section in its entirety with the following:

       

      Section
10.3     Capitalization
Ratio.  The Obligors will not permit Consolidated Funded Debt at any time
to exceed (a) 60% of Consolidated Total Capitalization on the Restatement
Closing Date through June 29, 2010, (b) 61% of Consolidated Total Capitalization
on June 30, 2010 through September 29, 2010, (c) 62% of Consolidated Total
Capitalization on September 30, 2010 through March 30, 2011, (d) 61% of
Consolidated Total Capitalization on March 30, 2011 through June 29, 2011, and
(e) 60% of Consolidated Total Capitalization thereafter.  

       

                 
(d)       Section
10.5. Section 10.5 of the Note Agreement is amended by replacing such
Section in its entirety with the following:

       

      Section
10.5     Interest Coverage Ratio. 
The Obligors will not suffer or permit the ratio of (a) EBITDAR to (b)
Consolidated Interest Expense, in each case for the four-fiscal quarter period
ending on the dates set forth below, to be less than:

       

       

      	
              Four fiscal quarter
      period ending date:

               

            	
              Minimum Interest Coverage:

               

            
	
              March 31,
      2010

               

            	
              0.42:1.00

               

            
	
              June 30,
      2010

               

            	
              0.95:1.00

               

            
	
              September 30,
      2010

               

            	
              1.57:1.00

               

            
	
              December 31,
      2010

               

            	
              1.71:1.00

               

            
	
              March 31,
      2011

               

            	
              2.23:1.00

               

            
	
              June 30, 2011
      and thereafter

               

            	
              2.76:1.00

               

            

       

       

       

       

      
         

        
          2

          
            

          

        

        
          
          

        

      

             (e)       
Section
10.6.   Section 10.6 of the Note Agreement is amended by
replacing such Section in its entirety with the following:

                   
Section 10.6     Minimum EBITDA. 
For each period of four fiscal quarters ending on the last day of each quarterly
fiscal period of the Company, commencing on March 31, 2010, the Obligors will
not permit EBITDA to be less than:

       

      	
              Four fiscal quarter
      period ending date:

               

            	
              Minimum EBITDA:

               

            
	
              March 31,
      2010

               

            	
              $603,000

               

            
	
              June 30,
      2010

               

            	
              $7,245,000

               

            
	
              September 30,
      2010

               

            	
              $15,106,000

               

            
	
              December 31,
      2010

               

            	
              $17,623,000

               

            
	
              March 31,
      2011

               

            	
              $24,904,000

               

            
	
              June 30, 2011
      and thereafter

               

            	
              $32,077,000

               

            

       

       

             (f)
       Section 10.7.   Section
10.7 of the Note Agreement is amended by replacing such Section in its entirety
with the following:

       

      Section
10.7     Capital Expenditures. 
The Company will not, and will not permit any Subsidiary to, make Capital
Expenditures in the aggregate for the Company and Subsidiaries in excess of: (i)
$5,015,000 for the fiscal quarter ending March 31, 2010, (ii) $8,178,000 on a
cumulative basis for the period of two fiscal quarters ending June 30, 2010,
(iii) $12,867,000 on a cumulative basis for the period of three fiscal quarters
ending September 30, 2010, (iv) $16,705,000 on a cumulative basis for the period
of four fiscal quarters ending December 31, 2010, (v) $2,637,000 for the fiscal
quarter ending March 31, 2011 and (vi) in excess of $5,274,000 on a cumulative
basis for the period of two fiscal quarters ending June 30, 2011; provided that,
the amount of permitted 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 Obligors in such fiscal
period; provided further that, Capital Expenditures made with (A) net proceeds
from a Material Recovery Event used to replace, rebuild or restore fixed assets
in accordance with Section 8.8(a) hereof, and (B) net proceeds from asset
dispositions used to replace such assets in accordance with Section 8.8(a)
hereof, shall not be included in calculating Capital Expenditures for purposes
of this Section 10.7.

                 

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

               (g)
       Section 10.9.   Section
10.9 of the Note Agreement is amended by replacing Subsection (b) of such
Section in its entirety with the following:

      (b)  any loans granted to or Capital Lease Obligations
entered into by the Company or any Subsidiary for the purchase or lease of fixed
assets (and refinancings of such loans or Capital Lease Obligations), which
loans and Capital 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 Capital Lease Obligations for the Company and its Subsidiaries shall
not exceed Six Million Dollars ($6,000,000) in the
aggregate at any time outstanding;

       

      (h)       
Section
10.19.            
Section 10.19 of the Note Agreement is amended by replacing such Section
in its entirety with the following:

       

      Section 10.19 
Credit
Documents.  The Company
shall not, without the prior written consent of the Required Holders, amend,
restate, supplement or otherwise modify the Credit Documents to (a) increase the
committed principal amount of the Revolving Credit Facility unless such increase
shall be permitted pursuant to Section
10.9(l), (b) change the date of any scheduled principal payment to a date
prior to September 21, 2011 or (c) otherwise modify any provision such that a
Default or Event of Default will exist.  The Obligors shall not, without
the prior written consent of the Required Holders, permit to exist, on the
occurrence of any condition or otherwise, any Lien or other security in favor of
the trustee for or the Bank Lenders or any agent therefor other than any Lien
granted to Collateral Agent for the benefit of both the Bank Lenders and the
holders of the Notes and Liens on assets of Foreign Subsidiaries to the extent
subject to the Intercreditor Agreement.  The Company will not reduce the
commitments to its Revolving Credit Facility to less than the Minimum Revolver
Amount, except to the extent that the Company has offered to the holders of the
Notes a proportionate prepayment of the Notes pursuant to Section 8.1(b) in
connection with each such reduction of the Revolving Credit Facility below the
Minimum Revolver Amount, and to the extent such offer is accepted, has made such
prepayment.  The Company will not make any Restricted Payment under the
Credit Agreement other than Restricted Payments under Section 10.14.  For
purposes of this Section 10.19, the Minimum Revolver Amount at any time shall
mean $85,000,000, reducing to $84,000,000 on December 31, 2010, reducing to
$83,000,000 on March 31, 2011 and reducing to and remaining $82,000,000 on June
30, 2011 and thereafter.

                       
(i)         Section
10.      Section 10 of the Note Agreement is
amended by adding the following as new Sections 10.25 and 10.26 at the end of

      Section
10:

       

       

       

      
        
          
          

        

        
          4

          
            

          

        

         

      

      Section 10.25  Restructure
of Foreign Subsidiaries. Except as listed on Schedule 10.25, the Obligors
agree that the Obligors will not commence a material restructuring (including
any insolvency action with respect thereto) of any Foreign Borrower (as such
term is defined in the Credit Agreement) or any Subsidiary which was formerly a
Foreign Borrower under the Credit Agreement (notwithstanding its release as a
Foreign Borrower under the Credit Agreement pursuant to the Second Amendment to
Credit Agreement or otherwise as contemplated thereby), so long as any
Obligations (as such term is defined in the Credit Agreement) of such Foreign
Subsidiary under the Credit Agreement 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 after the Obligors have taken
all steps reasonably available to prevent, object to or stay such
action.

       

      Section 10.26 
Minimum Asset
Coverage Ratio:  The Company
shall
not suffer or permit at as of the last day of any fiscal quarter the Minimum
Asset Coverage Ratio of the Company to be less than to be less than 1.05 to
1.00.

       

                 
(j)         Schedule
B.   Schedule B to the Note Agreement is amended by (1) adding
thereto the following definitions of “Alternate Currency”, “Attributable
Indebtedness”, “Minimum Asset Coverage Ratio”, “Second Amendment Date” and
“Second Amendment to Credit Agreement” in appropriate alphabetical order and (2)
replacing the definition of “EBITDA” and “Subsidiary” in their entirety with the
following definitions of “EBITDA” and “Subsidiary”:

       

      “Alternate
Currency” shall mean Euros or any other currency, other than Dollars,
agreed to by the holders of the Notes that shall be freely transferable and
convertible into Dollars.

       

       “Attributable
Indebtedness” shall mean, 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 Capital Lease Obligations.

       

      “EBITDA”
shall mean, for the Company and its Subsidiaries on a consolidated basis for any
period, after giving Acquisition Pro Forma Effect to any Acquisition made during
such period,
the sum of (a) Section 10.10 Consolidated Net Income, plus (b) Section
10.10 Interest Expense, plus (c) any provision for taxes based on income or
profits that was deducted in computing Section 10.10 Consolidated Net Income,
plus (d) depreciation, plus (e) amortization of intangible assets and other
non-recurring non-cash charges, plus (f) non-recurring non-cash restructuring
charges, minus without duplication, the aggregate amounts included in
determining such Section 10.10 Consolidated Net Income 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 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 10.2, Section 10.5 and
Section 10.6 hereof, 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.  

       

       

       

      
        5

        
          

        

      

      "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 Company as of such date, plus
Consolidated Inventory (as defined by GAAP) of the Company as of such date to
(b) the outstanding “Revolving Credit Exposure” (as defined in the Credit
Agreement as in effect as of the Second Amendment Date) at such time.

       

      “Second
Amendment Date” shall mean March 5, 2010.

       

      “Second
Amendment to Credit Agreement” shall mean that certain Amendment No.2 to
Amended and Restated Credit Agreement, dated as of March 5, 2010, by and among
the Obligors, certain of their other subsidiaries, the lenders parties thereto
and KeyBank National Association, as Administrative Agent.

       

      “Subsidiary” shall mean,
as to any Person, any corporation, association or other business entity in which
such Person or one or more of its Subsidiaries or such Person and one or more of
its Subsidiaries owns sufficient equity or voting interests to enable it or them
(as a group) ordinarily, in the absence of contingencies, to elect a majority of
the directors (or Persons performing similar functions) of such entity, and any
partnership or joint venture if more than a 50% interest in the profits or
capital thereof is owned by such Person or one or more of its Subsidiaries or
such Person and one or more of its Subsidiaries (unless such partnership can and
does ordinarily take major business actions without the prior approval of such
Person or one or more of its Subsidiaries).  Unless the context otherwise
clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary
of the Company; provided,
however that Kugelfertigung Eltmann GmbH shall not be considered a
Subsidiary for purposes of this Agreement except with respect to the following
definitions and Sections: (i) Section 7.1(a); (ii) Section 7.1(b); (iii) Section
10.10(m); (iv) Section 10.22; and (v) the definitions of the following terms set
forth in Schedule B:  “Consolidated”; “Consolidated Fixed Charges”;
“Consolidated Funded Debt”; “Consolidated Net Income”; “Consolidated Net Worth”;
“Consolidated Section 10.10 Debt”; “Consolidated Total Assets”; “EBITDA”;
“Foreign Subsidiary”; “Funded Debt”; “Interest Charges”; “Leverage Ratio”;
“Pledged Securities”; “Section 10.10 Consolidated Net Income”; “Section 10.10
Interest Expense”; and “Section 10.10 Rent Expense”.

       

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      2.        Waiver
of Mandatory Prepayment.  The Noteholders waive the
requirement under Section 10.19 of the Agreement that the Company offer to
prepay a portion of the Notes pursuant to Section 8.1(b) in connection with the
reduction of the Revolving Credit Facility to $85,000,000 pursuant to the Second
Amendment to Credit Agreement (as defined below). 

       

      3.        Conditions
to Effectiveness of this Amendment. Notwithstanding any other
provision of this Amendment and without affecting in any manner the rights of
the Noteholders hereunder, it is understood and agreed that this Amendment shall
not become effective, and the Company shall have no rights under this Amendment,
until the Noteholders shall have received (i) payment of an amendment fee to the
Noteholders in the amount of 0.25% of the aggregate outstanding principal amount
of the Notes, (ii) payment of a structuring fee to the Noteholders in the amount
of $16,806, (iii) reimbursement or payment of their costs and expenses incurred
in connection with this Amendment or the Note Agreement (including reasonable
fees, charges and disbursements of King & Spalding LLP, counsel to the
Noteholders) and (iv) each of the following:

       

       

       

      (a)
       executed counterparts to this Amendment
from the Company, each of the Guarantors and the Noteholders;

       

       

       

      (b)
       a certified copy of the fully effective
amendment to the Credit Documents, in form and substance satisfactory to the
Noteholders, incorporating in substance the amendments set forth in Section
1 hereof, authorizing KeyBank National Association, as Administrative
Agent, to enter into the amendment to the Intercreditor Agreement contemplated
in clause (c) below and consenting to the execution, delivery and performance of
this Amendment by the Company and the Guarantors (the “Second
Amendment to Credit Agreement”); and  

       

       

       

      (c)        a fully effective amendment
to the Intercreditor Agreement, in form and substance satisfactory to the
Noteholders. 

       

       

       

      4.        Representations
and Warranties.  To induce the Noteholders to enter into this
Amendment, each Obligor hereby represents and warrants to the Noteholders that:

       

       

       

      (a)        The execution, delivery and
performance by such Obligor of this Amendment (i) are within such Obligor’s
power and authority; (ii) have been duly authorized by all necessary
corporate and shareholder action; (iii) are not in contravention of any
provision of such Obligor’s certificate of incorporation or bylaws or other
organizational documents; (iv) do not violate any law or regulation, or any
order or decree of any Governmental Authority; (v) do not conflict with or
result in the breach or termination of, constitute a default under or accelerate
any performance required by, any indenture, mortgage, deed of trust, lease,
agreement or other instrument to which such Obligor or any of its Subsidiaries
is a party or by which such Obligor or any such Subsidiary or any of their
respective property is bound; (vi) do not result in the creation or imposition
of any Lien upon any of the property of such Obligor or any of its Subsidiaries;
and (vii) do not require the consent or approval of any Governmental
Authority or any other person;

       

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      (b)        This Amendment has been
duly executed and delivered for the benefit of or on behalf of each Obligor and
constitutes a legal, valid and binding obligation of each Obligor, enforceable
against such Obligor in accordance with its terms; and

       

       

       

      (c)        After giving effect to this
Amendment, the representations and warranties contained in the Note Agreement
and the other Financing Agreements are true and correct in all material
respects, and no Default or Event of Default has occurred and is continuing, or
would result herefrom, as of the date hereof, 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 Note
Agreement.

       

       

       

      5.                 
Reaffirmations
and Acknowledgments.  

       

       

       

      (a)        Reaffirmation
of Guaranty.  Each Guarantor consents to the execution and delivery
by the Company of this Amendment and jointly and severally ratify and confirm
the terms of its Guaranty of the Obligations of the Company arising under
Section 23 of the Note Agreement.  Each Guarantor acknowledges that,
notwithstanding anything to the contrary contained herein or in any other
document evidencing any indebtedness of the Company to the Noteholders or any
other obligation of the Company, or any actions now or hereafter taken by the
Noteholders with respect to any obligation of the Company, Section 23 of the
Note Agreement (i) is and shall continue to be a primary obligation of the
Guarantors, (ii) is and shall continue to be an absolute, unconditional, joint
and several, continuing and irrevocable guaranty of payment, and (iii) is and
shall continue to be in full force and effect in accordance with its
terms.  Nothing contained herein to the contrary shall release, discharge,
modify, change or affect the original liability of the Guarantors under Section
23 of the Note Agreement.  

       

       

       

      (b)        Acknowledgment
of Perfection of Security Interest. Each Obligor hereby acknowledges
that, as of the date hereof, the security interests and liens granted to the
Collateral Agent and the Noteholders under the Note Agreement, the Pledge
Agreements and the other Financing Agreements are in full force and effect, are
properly perfected and are enforceable in accordance with the terms of the Note
Agreement and the other Financing Agreements.

       

       

       

      6.                 
Effect
of Amendment.  Except as set forth expressly herein, all
terms of the Note Agreement, as amended hereby, and the other Financing
Agreements shall be and remain in full force and effect and shall constitute the
legal, valid, binding and enforceable obligations of the Obligors to the
Noteholders.  The execution, delivery and effectiveness of this Amendment
shall not, except as expressly provided herein, operate as a waiver of any
right, power or remedy of the Noteholders under the Note Agreement, nor
constitute a waiver of any provision of the Note Agreement.  This Amendment
shall constitute a Financing Agreement for all purposes of the Note
Agreement.

       

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      7.                 
Governing
Law.   This Amendment shall be governed by, and
construed in accordance with, the internal laws of the State of New York and all
applicable federal laws of the United States of
America.

       

       

       

      8.                 
No
Novation.  This Amendment is not intended by the parties to
be, and shall not be construed to be, a novation of the Note Agreement or an
accord and satisfaction in regard thereto.

       

       

       

      9.                 
Costs
and Expenses; Agreement With Respect to the Credit
Documents.  The Company agrees to pay on demand all
reasonable costs and expenses of the Noteholders in connection with the
preparation, execution and delivery of this Amendment, including, without
limitation, the reasonable fees and out-of-pocket expenses of outside counsel
for the Noteholders with respect thereto.  To the extent any Bank Lender is
compensated for executing and delivering the Second Amendment to Credit
Agreement, whether by fee, increased yield or otherwise, the Company shall
provide the Noteholders with at least the equivalent economic consideration,
including without limitation the fees set forth in subparagraphs (i) and (ii) of
Section 3 of this Amendment (it being understood that the foregoing sentence
shall in no way be deemed to constitute a consent on the part of the Noteholders
for any such additional compensation to such
Persons).

       

       

       

      10.             
Counterparts.This Amendment may be executed by one or more of the parties
hereto in any number of separate counterparts, each of which shall be deemed an
original and all of which, taken together, shall be deemed to constitute one and
the same instrument.  Delivery of an executed counterpart of this Amendment
by facsimile transmission or by electronic mail in pdf form shall be as
effective as delivery of a manually executed counterpart
hereof.

       

       

       

      11.             
Binding
Nature.  This Amendment shall be binding upon and inure to
the benefit of the parties hereto, their respective successors,
successors-in-titles, and assigns.

       

       

       

      12.             
Entire
Understanding.  This Amendment sets forth the entire
understanding of the parties with respect to the matters set forth herein, and
shall supersede any prior negotia­tions or agreements, whether written or
oral, with respect thereto.

       

       

       

      [Remainder of page
intentionally blank.]

       

       

       

      
         

        
          9

          
            

          

        

         

      

    

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

       

       

       

       

       

                                                                                

        
          	 	
                  Company:

                   

                  NN,
      Inc.

                	 
	 	 	 	 
	
                   

                	
                  By:
      

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

        

      

       

                                                                                

    

    
      
        
        

      

      
        
        

        
          

        

      

      GUARANTORS

    

    
       

      
        
          	 	Industrial
      Molding Corporation, as successor by merger to Industrial Molding Group,
      L.P.	 
	 	 	 	 
	
                   

                	
                  By:
      

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

                   

                	 

        

      

      
        
          	 	The
      Delta Rubber Company, a Connecticut corporation	 
	 	 	 	 
	
                     
      

                	
                  By:
      

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

        

      

       

      
        
          	 	Whirlaway
      Corporation, an Ohio corporation	 
	 	 	 	 
	
                     
      

                	
                  By:
      

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

        

      

       

        
          	 	Triumph
      LLC, an Arizona limited liability company	 
	 	 	 	 
	
                   

                	
                  By:
      

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

        

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

                                                                                           
               NOTEHOLDERS:

      
        
          	 	The
      Prudential Insurance Company of America	 
	 	 	 	 
	
                     
      

                	
                  By:
      

                	/s/ Billy
      Greer	 
	 	 	Name: 
      Billy Greer 	 
	 	 	Title: 
      Senior Vice President 	 
	 	 	 	 

        

      

      
        
          	 	
                  Prudential
      Retirement Insurance and Annuity Company

                   

                  By: 
      Prudential Investment Management, Inc., as investment
    manager

                	 
	 	 	 	 
	
                     
      

                	
                  By:
      

                	/s/ Billy
      Greer	 
	 	 	Name: 
      Billy Greer 	 
	 	 	Title: 
      Senior Vice President 	 
	 	 	 	 

        

      

      
        
          	 	
                  American
      Bankers Life Assurance Company of Florida, Inc.

                   

                  By: 
      Prudential Private Placement Investors, L.P., as Investment
      Advisor

                   

                  By: 
      Prudential Private Placement Investors, Inc., as its General
      Partner

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/
      Billy Greer 	 
	 	 	Name: 
      Billy Greer 	 
	 	 	Title: 
      Senior Vice President 	 
	 	 	 	 

        

      

       

       

      
        
          
            

          

        

        
          
          

        

      

      
        
          	 	
                  Farmers
      New World Life Insurance Company

                   

                  By: 
      Prudential Private Placement Investors, L.P., as Investment
      Advisor

                   

                  By: 
      Prudential Private Placement Investors, Inc., as its General
      Partner

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ 
      Billy Greer 	 
	 	 	Name: 
      Billy Greer 	 
	 	 	Title: 
      Senior Vice President 	 
	 	 	 	 

        
                          

        
          	 	
                  Union
      Security Insurance Company, as successor to Time Insurance
      Company

                   

                  By: 
      Prudential Private Placement Investors, L.P., as Investment
      Advisor

                   

                  By: 
      Prudential Private Placement Investors, Inc., as its General
      Partner

                	 
	 	 	 	 
	
                     
      

                	
                  By:
      

                	/s/
      Billy Greer 	 
	 	 	Name: 
      Billy Greer 	 
	 	 	Title: 
      Senior Vice President 	 
	 	 	 	 

        

      

       

                                               

       

    

    
    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule 10.25 

     

    to

     

    Second Amended and
Restated Note Purchase Agreement and Shelf Agreement

     

     

     

     

     

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

     

     

     

               
2.         NN Italy employee reduction
action (up to 34 employees)Exhibit 10.30

 

AMENDMENT
IV

 

TO THE REINSURANCE
AGREEMENT

 

BETWEEN

 

AMERICAN
EQUITY INVESTMENT LIFE INSURANCE COMPANY

(Referred to in
this Amendment as the Company)

 

AND

 

HANNOVER
LIFE REASSURANCE COMPANY OF AMERICA

(Referred to in
this Amendment as the Reinsurer)

 

This Amendment IV is to
be attached to and made a part of the Automatic YRT Reinsurance Agreement which
became effective October 1, 2005.  All
provisions of the Reinsurance Agreement not in conflict with the provisions of
this Amendment IV shall remain unchanged.

 

As of the effective date of this
Amendment IV, the following shall replace Exhibit B-1 — Plans Covered in its
entirety.

 

EXHIBIT B-1

 

PLANS COVERED

 

This
Agreement provides for reinsurance of the Company’s Single Premium Deferred
Annuities (SPDAs) and Flexible Premium Deferred Annuities (FPDAs), with the
plan codes listed below.

 

All
such plans issued and in-force as of the Effective Date of the Agreement and
all such plans issued on or after the Effective Date are reinsured under the
Agreement.

 

With
respect to plans reinsured with EquiTrust Life Insurance Company or Athene Life
Re Ltd. as of the Effective Date of this Agreement, the Agreement provides
reinsurance on the portion of such plans not reinsured with EquiTrust Life
Insurance Company or Athene Life Re Ltd.

 

With respect to the IDX-RG-09, IDXRG-09IN,
INDEX-2-09, FX-RG-09, FXRG-2-09, and IDX-2-09IN plans:

1.                                       The term “surrender charge” as used
throughout this Agreement shall mean the combined effect of the contractually
defined surrender charge and the bonus vesting schedule.  The resulting surrender charge percentages
are level within each contract year.

2.                                       Contracts with bonus percentages over 12%
will not be reinsured under this Agreement unless the Company obtains prior
written approval from the Reinsurer.

 

 

Plan
Codes

 

	
  ACCUMULATOR

  	
   

  	
  FPDA-3 7.3

  	
   

  	
  I-2001TX

  	
   

  	
  INDEX-26

  	
   

  	
  SNF ACC55

  
	
  BN PROCEED

  	
   

  	
  FPDA-3 REV

  	
   

  	
  I-2001TX-5

  	
   

  	
  INDEX-27

  	
   

  	
  SNF ACCUM

  
	
  BRAVO

  	
   

  	
  FPDA-3FL

  	
   

  	
  I-2002

  	
   

  	
  INDEX-27IN

  	
   

  	
  SPDA-1

  
	
  BRAVO 2003

  	
   

  	
  FPDA-3IN

  	
   

  	
  I-2002 REV

  	
   

  	
  INDEX-28

  	
   

  	
  SPDA-1(3%)

  
	
  CUMULATOR

  	
   

  	
  FPDA-3TX

  	
   

  	
  I-25 (REV)

  	
   

  	
  INDEX-28IN

  	
   

  	
  SPDA-1PA

  
	
  F-3FLREV

  	
   

  	
  FPDA-4

  	
   

  	
  I-27 (REV)

  	
   

  	
  INDEX-28KY

  	
   

  	
  SPDA-1PLUS

  
	
  F-3INREV

  	
   

  	
  FPDA-4PA

  	
   

  	
  I-27REV IN

  	
   

  	
  INDEX-29

  	
   

  	
  SPDA-1SNF

  
	
  F-3REVTX

  	
   

  	
  FPDA-4SNF

  	
   

  	
  I-27REV KY

  	
   

  	
  INDEX-30

  	
   

  	
  SPDA-1UT

  
	
  FPD22.25IN

  	
   

  	
  FPDA-5

  	
   

  	
  I-29 (REV)

  	
   

  	
  INDEX-3-05

  	
   

  	
  SPDA-2

  
	
  FPD32.25IN

  	
   

  	
  FPDA5 2.25

  	
   

  	
  IDX-1-05IN

  	
   

  	
  INDEX-30IN

  	
   

  	
  SPDA-2(3%)

  
	
  FPD72.25IN

  	
   

  	
  FPDA5225IN

  	
   

  	
  IDX-1-05KY

  	
   

  	
  INDEX-30KY

  	
   

  	
  SPDA-2PA

  
	
  FPD82.25IN

  	
   

  	
  FPDA-5FL

  	
   

  	
  IDX-26 7.5

  	
   

  	
  INDEX-4

  	
   

  	
  SPDA-2SNF

  
	
  FPDA-1

  	
   

  	
  FPDA-5PLUS

  	
   

  	
  IDX-4-05TX

  	
   

  	
  INDEX-4-05

  	
   

  	
  SPDA-5

  
	
  FPDA-1(3%)

  	
   

  	
  FPDA-6

  	
   

  	
  INDEX

  	
   

  	
  INDEX-5

  	
   

  	
  STRETCH

  
	
  FPDA-10

  	
   

  	
  FPDA-6FL

  	
   

  	
  INDEX-1

  	
   

  	
  INDEX-5-05

  	
   

  	
  SUPER-7

  
	
  FPDA-10SNF

  	
   

  	
  FPDA-6TX

  	
   

  	
  INDEX-2

  	
   

  	
  INDEX-6

  	
   

  	
  SUPER-7REV

  
	
  FPDA-10TX

  	
   

  	
  FPDA-7

  	
   

  	
  INDEX-10

  	
   

  	
  INDEX-6SNF

  	
   

  	
  SUPER-7TX

  
	
  FPDA-10VA

  	
   

  	
  FPDA7 2.25

  	
   

  	
  INDEX-1-05

  	
   

  	
  INDEX-6TX

  	
   

  	
  SUPR7 2.25

  
	
  FPDA-11

  	
   

  	
  FPDA-8

  	
   

  	
  INDEX-12

  	
   

  	
  INDEX-8

  	
   

  	
  SUPR7225IN

  
	
  FPDA-11SNF

  	
   

  	
  FPDA8 2.25

  	
   

  	
  INDEX-13

  	
   

  	
  INDEX-T03

  	
   

  	
  FPD11NOMVA

  
	
  FPDA-11TX

  	
   

  	
  FPDA-PD2

  	
   

  	
  INDEX-15

  	
   

  	
  INDEXP3

  	
   

  	
  FPDA-10PA

  
	
  FPDA-1PA

  	
   

  	
  GFIR

  	
   

  	
  INDEX-16

  	
   

  	
  INDEXP3FL

  	
   

  	
  FPDA-10WA

  
	
  FPDA-1SNF

  	
   

  	
  GFIR2-3

  	
   

  	
  INDEX-17

  	
   

  	
  INDEXP3-PA

  	
   

  	
  INDEX-6-05

  
	
  FPDA-2

  	
   

  	
  GFIR-5

  	
   

  	
  INDEX-18

  	
   

  	
  INDEXP3TX

  	
   

  	
  IDX-6-05-1

  
	
  FPDA2 2.25

  	
   

  	
  I-19 (REV)

  	
   

  	
  INDEX-19

  	
   

  	
  INDX-2

  	
   

  	
  INDEX-2-06

  
	
  FPDA2-2001

  	
   

  	
  I-19 REV7

  	
   

  	
  INDEX-22

  	
   

  	
  INDX-I

  	
   

  	
  FPDA-10IN

  
	
  FPDA-2PLUS

  	
   

  	
  I-2000

  	
   

  	
  INDEX-23

  	
   

  	
  INDX-IIN

  	
   

  	
  FPDA-12

  
	
  FPDA-2TX

  	
   

  	
  I-2000TX

  	
   

  	
  INDEX-24

  	
   

  	
  INDX-IPA

  	
   

  	
  IDX1-07FL

  
	
  FPDA-3

  	
   

  	
  I-2000TX-5

  	
   

  	
  INDEX-25

  	
   

  	
  INDX-ITX

  	
   

  	
  IX107ELFL

  
	
  FPDA3 2.25

  	
   

  	
  I-2001

  	
   

  	
  INDEX-25WA

  	
   

  	
  S-7TXREV

  	
   

  	
   

  
	
  IDX-1-07ELB

  	
   

  	
  IDX-1-07LB

  	
   

  	
  INDEX 1-07

  	
   

  	
  IX107LBFL

  	
   

  	
   

  
	
  INDEX-2-09

  	
   

  	
  IDX-RG-09

  	
   

  	
  FX-RG-09

  	
   

  	
   

  	
   

  	
   

  
	
  IDX-2-09IN

  	
   

  	
  IDXRG-09IN

  	
   

  	
  FXRG-2-09

  	
   

  	
   

  	
   

  	
   

  

 

 

EXECUTION

 

In
witness of the above, this Amendment IV is signed in duplicate at the dates and
places indicated with an effective date of October 1, 2009.

 

	
  HANNOVER LIFE REASSURANCE
  COMPANY

  	
   

  	
  AMERICAN
  EQUITY INVESTMENT LIFE

  
	
  OF AMERICA

  	
   

  	
  INSURANCE
  COMPANY

  
	
  ORLANDO, FLORIDA

  	
   

  	
  WEST
  DES MOINES, IOWA

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
  DECEMBER
  28, 2009

  	
   

  	
  DATE:

  	
  DECEMBER
  23, 2009

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BY:

  	
  /s/ GARY L. GRAY

  	
   

  	
  BY:

  	
  /s/ JUDITH A NAANEP

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TITLE:

  	
  VICE PRESIDENT

  	
   

  	
  TITLE:

  	
  VP, CORPORATE ACTUARY

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BY:

  	
  /s/ JEFFREY R. BURT

  	
   

  	
  WITNESS:

  	
  /s/ ELIZABETH CLARK

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TITLE:

  	
  EVP

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"}]]