Document:

Exhibit 10.1 - Amended and Restated Credit Agreement

     

    Exhibit
      10.1

     

     

    
      

      

    

     

    

    AMENDED
      AND RESTATED CREDIT AGREEMENT

     

    dated
      as
      of

     

    February
      3, 2006,

     

    among

     

    METALDYNE
      CORPORATION,

     

    METALDYNE
      COMPANY LLC,

     

    The
      Foreign Subsidiary Borrowers Party Hereto,

     

    The
      Lenders Party Hereto,

     

    JPMORGAN
      CHASE BANK,

    as
      Administrative Agent and Collateral Agent

     

    CREDIT
      SUISSE FIRST BOSTON,

    as
      Syndication Agent

     

    COMERICA
      BANK,

    as
      Documentation Agent

     

    FIRST
      UNION NATIONAL BANK,

    as
      Documentation Agent

     

    NATIONAL
      CITY BANK,

    as
      Documentation Agent

     

    and

     

    BANK
      ONE,
      NA,

    as
      Documentation Agent

    ___________________________

     

    J.P.
      MORGAN SECURITIES INC.,

     

    and

     

    CREDIT
      SUISSE

     

    as

     

    Joint
      Bookrunners and Joint Lead Arrangers

     

     

    
      

      

    

     

    

    

    

    TABLE
      OF
      CONTENTS

     

    Page        
      

    

     

    ARTICLE
      I

     

    Definitions

     

    
      	
              SECTION
                1.01.

            	
              Defined
                Terms

            	
               
                1

            
	
              SECTION
                1.02.

            	
              Classification
                of Loans and Borrowings

            	
              44

            
	
              SECTION
                1.03.

            	
              Terms
                Generally

            	
              44

            
	
              SECTION
                1.04.

            	
              Accounting
                Terms; GAAP

            	
              44

            
	
              SECTION
                1.05.

            	
              Exchange
                Rates

            	
              45

            
	
              SECTION
                1.06.

            	
              Redenomination
                of Certain Foreign Currencies

            	
              45

            

    

     

    ARTICLE
      II

     

    The
      Credits

     

    
      	
              SECTION
                2.01.

            	
              Commitments

            	
              46

            
	
              SECTION
                2.02.

            	
              Loans
                and Borrowings

            	
              46

            
	
              SECTION
                2.03.

            	
              Requests
                for Borrowings

            	
              47

            
	
              SECTION
                2.04.

            	
              Swingline
                Loans

            	
              48

            
	
              SECTION
                2.05.

            	
              Letters
                of Credit

            	
              49

            
	
              SECTION
                2.06.

            	
              Funding
                of Borrowings

            	
              55

            
	
              SECTION
                2.07.

            	
              Interest
                Elections

            	
              55

            
	
              SECTION
                2.08.

            	
              Termination
                and Reduction of Commitments

            	
              57

            
	
              SECTION
                2.09.

            	
              Repayment of
                Loans; Evidence of Debt

            	
              58

            
	
              SECTION
                2.10.

            	
              Amortization
                of Term Loans

            	
              59

            
	
              SECTION
                2.11.

            	
              Prepayment
                of Loans

            	
              60

            
	
              SECTION
                2.12.

            	
              Fees

            	
              62

            
	
              SECTION
                2.13.

            	
              Interest

            	
              63

            
	
              SECTION
                2.14.

            	
              Alternate
                Rate of Interest

            	
              64

            
	
              SECTION
                2.15.

            	
              Increased
                Costs

            	
              64

            
	
              SECTION
                2.16.

            	
              Break
                Funding Payments

            	
              65

            
	
              SECTION
                2.17.

            	
              Taxes

            	
              66

            
	
              SECTION
                2.18.

            	
              Payments
                Generally; Pro Rata Treatment; Sharing of Set-offs

            	
              68

            
	
              SECTION
                2.19.

            	
              Mitigation
                Obligations; Replacement of Lenders

            	
              70

            
	
              SECTION
                2.20.

            	
              Additional
                Reserve Costs

            	
              70

            
	
              SECTION
                2.21.

            	
              Designation
                of Foreign Subsidiary Borrowers

            	
              71

            
	
              SECTION
                2.22.

            	
              Foreign
                Subsidiary Borrower Costs

            	
              71

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    ARTICLE
      III

     

    Representations
      and Warranties

     

    
      	
              SECTION
                3.01.

            	
              Organization;
                Powers

            	
              72

            
	
              SECTION
                3.02.

            	
              Authorization;
                Enforceability

            	
              72

            
	
              SECTION
                3.03.

            	
              Governmental
                Approvals; No Conflicts

            	
              73

            
	
              SECTION
                3.04.

            	
              Financial
                Condition; No Material Adverse Change

            	
              73

            
	
              SECTION
                3.05.

            	
              Properties

            	
              74

            
	
              SECTION
                3.06.

            	
              Litigation
                and Environmental Matters

            	
              74

            
	
              SECTION
                3.07.

            	
              Compliance
                with Laws and Agreements

            	
              75

            
	
              SECTION
                3.08.

            	
              Investment
                and Holding Company Status

            	
              75

            
	
              SECTION
                3.09.

            	
              Taxes

            	
              75

            
	
              SECTION
                3.10.

            	
              ERISA

            	
              75

            
	
              SECTION
                3.11.

            	
              Disclosure

            	
              75

            
	
              SECTION
                3.12.

            	
              Subsidiaries

            	
              76

            
	
              SECTION
                3.13.

            	
              Insurance

            	
              76

            
	
              SECTION
                3.14.

            	
              Labor
                Matters

            	
              76

            
	
              SECTION
                3.15.

            	
              Solvency

            	
              76

            
	
              SECTION
                3.16.

            	
              Senior
                Indebtedness

            	
              76

            
	
              SECTION
                3.17.

            	
              Security
                Documents

            	
              77

            
	
              SECTION
                3.18.

            	
              Federal
                Reserve Regulations

            	
              78

            

    

     

    ARTICLE
      IV

     

    Conditions

     

    
      	
              SECTION
                4.01.

            	
              [intentionally
                omitted].

            	
              78

            
	
              SECTION
                4.02.

            	
              Each
                Credit Event

            	
              78

            
	
              SECTION
                4.03.

            	
              Credit
                Events Relating to Foreign Subsidiary Borrowers

            	
              79

            

    

     

    ARTICLE
      V

     

    Affirmative
      Covenants

     

    
      	
              SECTION
                5.01.

            	
              Financial
                Statements and Other Information

            	
              79

            
	
              SECTION
                5.02.

            	
              Notices
                of Material Events

            	
              81

            
	
              SECTION
                5.03.

            	
              Information
                Regarding Collateral

            	
              82

            
	
              SECTION
                5.04.

            	
              Existence;
                Conduct of Business

            	
              83

            
	
              SECTION
                5.05.

            	
              Payment
                of Obligations

            	
              83

            
	
              SECTION
                5.06.

            	
              Maintenance
                of Properties

            	
              83

            
	
              SECTION
                5.07.

            	
              Insurance

            	
              83

            
	
              SECTION
                5.08.

            	
              Casualty
                and Condemnation

            	
              84

            
	
              SECTION
                5.09.

            	
              Books
                and Records; Inspection and Audit Rights

            	
              84

            
	
              SECTION
                5.10.

            	
              Compliance
                with Laws

            	
              84

            

    

    

    -ii-

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              SECTION
                5.11.

            	
              Use
                of Proceeds and Letters of Credit

            	
              84

            
	
              SECTION
                5.12.

            	
              Additional
                Subsidiaries

            	
              85

            
	
              SECTION
                5.13.

            	
              Further
                Assurances

            	
              85

            
	
              SECTION
                5.14.

            	
              [intentionally
                omitted].

            	
              85

            
	
              SECTION
                5.15.

            	
              Available
                Funds; Additional Equity

            	
              85

            
	
              SECTION
                5.16.

            	
              North
                American Forging Sale

            	
              92

            

    

     

     

    ARTICLE
      VI

     

    Negative
      Covenants

     

    
      	
              SECTION
                6.01.

            	
              Indebtedness;
                Certain Equity Securities

            	
              86

            
	
              SECTION
                6.02.

            	
              Liens

            	
              89

            
	
              SECTION
                6.03.

            	
              Fundamental
                Changes

            	
              90

            
	
              SECTION
                6.04.

            	
              Investments,
                Loans, Advances, Guarantees and Acquisitions

            	
              92

            
	
              SECTION
                6.05.

            	
              Asset
                Sales

            	
              93

            
	
              SECTION
                6.06.

            	
              Sale
                and Leaseback Transactions

            	
              95

            
	
              SECTION
                6.07.

            	
              Hedging
                Agreements

            	
              95

            
	
              SECTION
                6.08.

            	
              Restricted
                Payments; Certain Payments of Indebtedness

            	
              95

            
	
              SECTION
                6.09.

            	
              Transactions
                with Affiliates

            	
              97

            
	
              SECTION
                6.10.

            	
              Restrictive
                Agreements

            	
              98

            
	
              SECTION
                6.11.

            	
              Amendment
                of Material Documents

            	
              99

            
	
              SECTION
                6.12.

            	
              Convertible
                Debentures

            	
              99

            
	
              SECTION
                6.13.

            	
              Interest
                Expense Coverage Ratio

            	
              99

            
	
              SECTION
                6.14.

            	
              Leverage
                Ratio

            	
              100

            
	
              SECTION
                6.15.

            	
              Capital
                Expenditures

            	
              100

            
	
              SECTION
                6.16.

            	
              Consolidated
                Lease Expense

            	
              101

            

    

     

    ARTICLE
      VII

     

    Events
      of
      Default

     

     

    ARTICLE
      VIII

     

    The
      Administrative Agent

     

     

    ARTICLE
      IX

     

    Collection
      Allocation Mechanism

     

    
      	
              SECTION
                9.01.

            	
              Implementation
                of CAM

            	
              106

            

    

    

    -iii-

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    

    
      	
              SECTION
                9.02.

            	
              Letters
                of Credit

            	
              107

            

    

    

     

    ARTICLE
      X

     

    Miscellaneous

     

    
      	
              SECTION
                10.01.

            	
              Notices

            	
              109

            
	
              SECTION
                10.02.

            	
              Waivers;
                Amendments

            	
              109

            
	
              SECTION
                10.03.

            	
              Expenses;
                Indemnity; Damage Waiver

            	
              111

            
	
              SECTION
                10.04.

            	
              Successors
                and Assigns

            	
              113

            
	
              SECTION
                10.05.

            	
              Survival

            	
              116

            
	
              SECTION
                10.06.

            	
              Counterparts;
                Integration; Effectiveness

            	
              116

            
	
              SECTION
                10.07.

            	
              Severability

            	
              116

            
	
              SECTION
                10.08.

            	
              Right
                of Setoff

            	
              116

            
	
              SECTION
                10.09.

            	
              Governing
                Law; Jurisdiction; Consent to Service of Process

            	
              117

            
	
              SECTION
                10.10.

            	
              WAIVER
                OF JURY TRIAL

            	
              117

            
	
              SECTION
                10.11.

            	
              Headings

            	
              118

            
	
              SECTION
                10.12.

            	
              Confidentiality

            	
              118

            
	
              SECTION
                10.13.

            	
              Interest
                Rate Limitation

            	
              119

            
	
              SECTION
                10.14.

            	
              Judgment
                Currency

            	
              119

            
	
              SECTION
                10.15.

            	
              Effectiveness
                of the Amendment and Restatement; Original Credit
                Agreement

            	
              120

            

    

    

    SCHEDULES:

     

    
      	
              Schedule 1.01(a)

            	
              --
                Existing Letters of Credit

            
	
              Schedule 2.01

            	
              --
                Commitments

            
	
              Schedule
                3.12

            	
              --
                Subsidiaries

            
	
              Schedule
                3.17(d)

               

            	
              --
                Mortgage Filing Offices

               

            

    

    EXHIBITS:

     

    
      	
              Exhibit A
                

            	
              --

            	
              Form
                of Assignment and Acceptance

            
	
              Exhibit
                B 

            	
              --

            	
              Form
                of Debenture Account

            
	
              Exhibit
                C 

            	
              --

            	
              Form
                of Foreign Subsidiary Borrowing

            
	
               

            	
               

            	
               
                Agreement

            
	
              Exhibit D
                

            	
              --

            	
              Form
                of Guarantee Agreement

            
	
              Exhibit
                E 

            	
              --

            	
              Form
                of Indemnity, Subrogation and

            
	
               

            	
               

            	
               
                Contribution Agreement

            
	
              Exhibit
                F 

            	
              --

            	
              Form
                of Mortgage

            
	
              Exhibit G
                

            	
              --

            	
              Form
                of Pledge Agreement

            
	
              Exhibit H
                

            	
              --

            	
              Form
                of Security Agreement

            
	
              Exhibit
                I 

            	
              --

            	
              Mandatory
                Costs Rate

            

    

    

    

    -iv-

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    AMENDED
      AND RESTATED CREDIT AGREEMENT dated as of February 3, 2006, among METALDYNE
      CORPORATION, METALDYNE COMPANY LLC, the FOREIGN SUBSIDIARY BORROWERS party
      hereto, the LENDERS party hereto, JPMORGAN CHASE BANK, as Administrative Agent
      and Collateral Agent, FIRST UNION NATIONAL BANK, as Documentation Agent,
      CREDIT SUISSE, as Syndication Agent, COMERICA BANK, as Documentation Agent,
      NATIONAL CITY BANK, as Documentation Agent and BANK ONE, NA, as Documentation
      Agent.

     

    The
      Parent Borrower desires to amend and restate the terms and provisions of the
      Credit Agreement dated as of November 28, 2000, as amended and restated as
      of
      June 20, 2002 and as further amended as of July 15, 2003, May 26,
      2004, September 29, 2004, December 21, 2004 and May 16, 2005 (the
      "Original
      Credit Agreement"),
      among
      Holdings, the Parent Borrower, the existing lenders thereunder and JPMorgan
      Chase Bank, as the administrative agent in the form hereof.

     

    The
      Lenders are willing to amend and restate the Original Credit Agreement and
      are
      willing to extend credit to the Parent Borrower and the Foreign Subsidiary
      Borrowers, in each case upon the terms and subject to the conditions set forth
      herein and in the Amendment and Restatement Agreement. Accordingly, the parties
      hereto agree as follows:

     

     

    ARTICLE
      I

     

    Definitions

     

    SECTION
      1.01. Defined
      Terms.
      As used
      in this Agreement, the following terms have the meanings specified
      below:

     

    "ABR",
      when
      used in reference to any Loan or Borrowing, refers to whether such Loan, or
      the
      Loans comprising such Borrowing, are bearing interest at a rate determined
      by
      reference to the Alternate Base Rate.

     

    "Acquired
      Assets"
      means
      (a) with respect to any fiscal year, the consolidated tangible assets
      acquired pursuant to a Permitted Acquisition during such fiscal year determined
      in accordance with GAAP (the "Specified
      Amount"),
      provided
      that if
      such Permitted Acquisition is not consummated during the first quarter of such
      fiscal year, Acquired Assets shall be determined for purposes of this
      clause (a) by multiplying the Specified Amount by (i) .75 if such
      Permitted Acquisition is consummated during the second quarter of such fiscal
      year, (ii) .50 if such Permitted Acquisition is consummated during the
      third quarter of such fiscal year and (iii) .25 if such Permitted
      Acquisition is consummated during the fourth quarter of such fiscal year and
      (b) with respect to any fiscal year thereafter, the Specified
      Amount.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2

     

    

    "Acquisition
      Lease Financing"
      means
      any sale or transfer by the Parent Borrower or any Subsidiary of any Specified
      Acquired Property that is rented or leased by the Parent Borrower or such
      Subsidiary so long as (a) the proceeds from such transaction consist solely
      of cash, (b) such transaction is consummated within 90 days after the
      completion of the applicable Permitted Acquisition and (c) the proceeds
      from such transaction are applied as contemplated by
      Section 2.11(e).

     

    "Adjusted
      LIBO Rate"
      means,
      with respect to any Eurocurrency Borrowing for any Interest Period, an interest
      rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal
      to
      (a) the LIBO Rate for such Interest Period multiplied by (b) the
      Statutory Reserve Rate.

     

    "Administrative
      Agent"
      means
      Chase, in its capacity as administrative agent for the Lenders hereunder. With
      respect to Foreign Currency Borrowings, the Administrative Agent may be an
      Affiliate of Chase for purposes of administering such Borrowings, and all
      references herein to the term "Administrative Agent" shall be deemed to refer
      to
      the Administrative Agent in respect of the applicable Borrowing or to all
      Administrative Agents, as the context requires.

     

    "Administrative
      Questionnaire"
      means
      an Administrative Questionnaire in a form supplied by the Administrative
      Agent.

     

    "Affiliate"
      means,
      with respect to a specified Person, another Person that directly, or indirectly
      through one or more intermediaries, Controls or is Controlled by or is under
      common Control with the Person specified.

     

    "Alternate
      Base Rate"
      means,
      for any day, a rate per annum equal to the greatest of (a) the Prime Rate
      in effect on such day, (b) the Base CD Rate in effect on such day
      plus 1% and (c) the Federal Funds Effective Rate in effect on such day
      plus 1⁄2 of 1%. Any change in the Alternate Base Rate due to a change in the
      Prime Rate, the Base CD Rate or the Federal Funds Effective Rate shall be
      effective from and including the effective date of such change in the Prime
      Rate, the Base CD Rate or the Federal Funds Effective Rate,
      respectively.

     

    "Amendment
      and Restatement Agreement"
      means
      the Amendment and Restatement Agreement dated as of February 3, 2006, among
      Holdings, the Parent Borrower, the Foreign Subsidiary Borrowers party thereto,
      the Lenders party thereto and the Administrative Agent. 

     

    "Amendment
      No. 1"
      means
      the Amendment No. 1 to this Agreement dated as of July 15, 2003, among
      Holdings, the Borrowers listed on Schedule 1 thereto and the Lenders party
      thereto.

     

    "Amendment
      Date"
      means
      the Amendment Date as defined in Amendment No. 1.

     

    "Applicable
      Percentage"
      means,
      with respect to any Revolving Lender, the percentage of the total Revolving
      Commitments represented by such Lender's Revolving

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3

     

    

    Commitment.
      If the Revolving Commitments have terminated or expired, the Applicable
      Percentages shall be determined based upon the Revolving Commitments most
      recently in effect, giving effect to any assignments.

     

    "Applicable
      Rate"
      means,
      for any day (a) with respect to any Tranche D Term Loan, (i) 3.75% per
      annum (or, if the Leverage Ratio is less than or equal to 4.25 to 1.00, 3.50%
      per annum) in the case of an ABR Loan, or (ii) 4.50% per annum (or, if the
      Leverage Ratio is less than or equal to 4.25 to 1.00, 4.25% per annum) in the
      case of a Eurocurrency Loan, and (b) with respect to any ABR Loan or
      Eurocurrency Loan that is a Revolving Loan, or with respect to the commitment
      fees payable hereunder, as the case may be, the applicable rate per annum set
      forth below under the caption "ABR Spread", "Eurocurrency Spread" or "Commitment
      Fee Rate", as the case may be, based upon the Leverage Ratio as of the most
      recent determination date:

     

    

    
      	
              Leverage
                Ratio:

            	
              ABR

              Spread

            	
              Eurocurrency

              Spread

            	
              Commitment

              Fee
                Rate

            
	
              Category 1

              Greater
                than 4.25 to 1.00

               

            	
              3.50%

               

            	
              4.50%

               

            	
              1.00%

               

            
	
              Category 2

              Less
                than or equal to 4.25 to 1.00 but greater than 3.75 to 1.00

               

            	
              3.25%

               

            	
              4.25%

               

            	
              1.00%

               

            
	
              Category
                3

              Less
                than or equal to 3.75 to 1.00 but greater than 3.50 to
                1.00

            	
              2.75%

               

            	
              3.75%

               

            	
              1.00%

               

            
	
              Category
                4

              Less
                than or equal to 3.50 to 1.00 but greater than 3.00 to 1.00

               

            	
              2.25%

               

            	
              3.25%

               

            	
              1.00%

               

            
	
              Category
                5

              Less
                than or equal to 3.00 to 1.00

               

            	
              2.00%

               

            	
              3.00%

               

            	
              1.00%

               

            

    

    

     

    For
      purposes of the foregoing, (i) the Leverage Ratio shall be determined as of
      the
      end of each fiscal quarter of the Parent Borrower's fiscal year based upon
      Holdings' consolidated financial statements delivered pursuant to Section
      5.01(a) or (b) and (ii) each change in the Applicable Rate resulting from a
      change in the Leverage Ratio shall be effective during the period commencing
      on
      and including the date of delivery to the Administrative Agent of such
      consolidated financial statements indicating such change and ending on the
      date
      immediately preceding the effective date of the next such change; provided
      that the
      Leverage Ratio shall be deemed to be in Category 1 (A) at any time that an
      Event
      of Default has occurred and is continuing or (B) if the Parent
      Borrower

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     4

     

    

    fails
      to
      deliver the consolidated financial statements required to be delivered by it
      pursuant to Section 5.01(a) or (b), during the period from the expiration of
      the
      time for delivery thereof until such consolidated financial statements are
      delivered.

     

    "Assessment
      Rate"
      means,
      for any day, the annual assessment rate in effect on such day that is payable
      by
      a member of the Bank Insurance Fund classified as "well-capitalized" and within
      supervisory subgroup "B" (or a comparable successor risk classification) within
      the meaning of 12 C.F.R. Part 327 (or any successor provision) to the
      Federal Deposit Insurance Corporation for insurance by such Corporation of
      time
      deposits made in dollars at the offices of such member in the
      United States; provided
      that if,
      as a result of any change in any law, rule or regulation, it is no longer
      possible to determine the Assessment Rate as aforesaid, then the Assessment
      Rate
      shall be such annual rate as shall be determined by the Administrative Agent
      to
      be representative of the cost of such insurance to the Lenders.

     

    "Asset
      Dropdown"
      means
      (a) the contribution by Holdings to the Parent Borrower of all of its
      assets (other than Saturn, the Saturn Subsidiary, the Specified Assets and
      the
      Specified Cash and other assets approved by the Administrative Agent) and
      (b) immediately after completion of such contribution, the execution of the
      Supplemental Indenture by the parties thereto.

     

    "Assignment
      and Acceptance"
      means
      an assignment and acceptance entered into by a Lender and an assignee (with
      the
      consent of any party whose consent is required by Section 10.04), and
      accepted by the Administrative Agent, in the form of Exhibit A or any other
      form approved by the Administrative Agent.

     

    "Assumed
      Preferred Stock"
      means
      any preferred stock or preferred equity interests of any Person that becomes
      a
      Subsidiary after the date hereof; provided
      that
      (a) such preferred stock or preferred equity interests exists at the time
      such Person becomes a Subsidiary and is not created in contemplation of or
      in
      connection with such Person becoming a Subsidiary and (b) the aggregate
      liquidation value of all such outstanding preferred stock and preferred equity
      interests shall not exceed $25,000,000 at any time outstanding, less the
      aggregate principal amount of Indebtedness incurred pursuant to
      Section 6.01(a)(xiii).

     

    "Available
      Funds"
      means
      collectively, at any time, (a) the amount of unused Revolving Commitments
      designated by the Parent Borrower at such time for availability to repurchase,
      redeem, repay or otherwise retire Convertible Debentures pursuant to Section
      5.15(b) and (b) the amount of cash in the Debenture Account at such
      time.

     

    "Available
      Funds Reserve Amount"
      means,
      at any time, an amount equal to the aggregate face amount of all Convertible
      Debentures outstanding at such time, provided
      that the
      Available Funds Reserve Amount shall in no event exceed
      $100,000,000.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5

     

    

    "Base
      CD Rate"
      means
      the sum of (a) the Three-Month Secondary CD Rate multiplied by the
      Statutory Reserve Rate plus (b) the Assessment Rate.

     

    "Board"
      means
      the Board of Governors of the Federal Reserve System of the United States
      of America.

     

    "Borrowing"
      means
      (a) Loans of the same Class and Type, made, converted or continued on the
      same date and, in the case of Eurocurrency Loans, as to which a single Interest
      Period is in effect, or (b) a Swingline Loan.

     

    "Borrowing
      Request"
      means a
      request by the Parent Borrower or a Foreign Subsidiary Borrower, as the case
      may
      be, for a Borrowing in accordance with Section 2.03.

     

    "Business
      Day"
      means
      any day that is not a Saturday, Sunday or other day on which commercial banks
      in
      New York City are authorized or required by law to remain closed;
provided
      that
      (a) when used in connection with any Eurocurrency Loan denominated in
      dollars or Sterling, the term "Business
      Day"
      shall
      also exclude any day on which banks are not open for dealings in dollar deposits
      in the London interbank market and (b) when used in connection with any
      Revolving Loan denominated in Euro, the term "Business Day" shall also exclude
      any day on which the TARGET payment system is not open for the settlement of
      payment in Euro.

     

    "Calculation
      Date"
      means
      (a) each date on which a Revolving Borrowing is made and (b) the last
      Business Day of each calendar month.

     

    "CAM"
      shall
      mean the mechanism for the allocation and exchange of interests in the Credit
      Facilities and collections thereunder established under
      Article IX.

     

    "CAM
      Exchange"
      shall
      mean the exchange of the Lender's interests provided for in
      Section 9.01.

     

    "CAM
      Exchange Date"
      shall
      mean the date on which (a) any event referred to in paragraph (h) or
      (i) of Article VII shall occur in respect of Holdings, the Parent
      Borrower or any Foreign Subsidiary Borrower or (b) an acceleration of the
      maturity of the Loans pursuant to Article VII shall occur.

     

    "CAM
      Percentage"
      shall
      mean, as to each Lender, a fraction, expressed as a decimal, of which
      (a) the numerator shall be the aggregate Dollar Equivalent (determined on
      the basis of Exchange Rates prevailing on the CAM Exchange Date) of the
      Specified Obligations owed to such Lender and such Lender's participation in
      undrawn amounts of Letters of Credit immediately prior to the CAM Exchange
      Date
      and (b) the denominator shall be the aggregate Dollar Equivalent (as so
      determined) of the Specified Obligations owed to all the Lenders and the
      aggregate undrawn amount of outstanding Letters of Credit immediately prior
      to
      such CAM Exchange Date.

     

    "Capital
      Expenditures"
      means,
      for any period, without duplication, (a) the additions to property, plant
      and equipment and other capital expenditures of Holdings, the

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6

     

    

    Parent
      Borrower and its consolidated Subsidiaries (including the Receivables
      Subsidiary) that are (or would be) set forth in a consolidated statement of
      cash
      flows of Holdings for such period prepared in accordance with GAAP (other than
      payments made in connection with the termination of obligations in respect
      of
      operating leases and acquiring related real property subject to such leases
      contemplated by Section 5.16) and (b) Capital Lease Obligations incurred by
      Holdings, the Parent Borrower and its consolidated Subsidiaries (including
      the
      Receivables Subsidiary) during such period.

     

    "Capital
      Lease Obligations"
      of any
      Person means the obligations of such Person to pay rent or other amounts under
      any lease of (or other arrangement conveying the right to use) real or personal
      property, or a combination thereof, which obligations are required to be
      classified and accounted for as capital leases on a balance sheet of such Person
      under GAAP, and the amount of such obligations shall be the capitalized amount
      thereof determined in accordance with GAAP.

     

    "Change
      in Control"
      means
      (a) the acquisition of ownership, directly or indirectly, beneficially or
      of record, by any Person other than Holdings of any Equity Interest in the
      Parent Borrower; (b) prior to the date of an IPO, either
      (i) Heartland, together with its Affiliates and the HIP Co-Investors
      (together with such HIP Co-Investors' Permitted Transferees (as such terms
      are
      defined in the Shareholder Agreement as in effect on the date hereof)), shall
      cease to beneficially own, directly or indirectly, Equity Interests in Holdings
      representing at least a majority of the aggregate ordinary voting power
      represented by the issued and outstanding Equity Interests in Holdings,
      (ii) Heartland and its Affiliates shall cease to beneficially own, directly
      or indirectly, Equity Interests in Holdings representing at least 30% of each
      of
      the aggregate ordinary voting power represented by the issued and outstanding
      Equity Interests in Holdings or (iii) any Person or group (within the
      meaning of the Securities Exchange Act of 1934 and the rules of the Securities
      and Exchange Commission thereunder as in effect on the date hereof) other than
      Heartland and its Affiliates shall beneficially own at any time, directly or
      indirectly (without giving effect, for avoidance of doubt, to shares owned
      by
      Heartland and its Affiliates), a greater percentage of the aggregate ordinary
      voting power of Holdings than the aggregate ordinary voting power of Holdings
      that is beneficially owned at such time, directly or indirectly (without giving
      effect, for avoidance of doubt, to shares owned by such Person), by Heartland
      and its Affiliates; (c) on or after an IPO, the acquisition of beneficial
      ownership, directly or indirectly, by any Person or group (within the meaning
      of
      the Securities Exchange Act of 1934 and the rules of the Securities and Exchange
      Commission thereunder as in effect on the date hereof) other than Heartland
      and
      its Affiliates, of Equity Interests representing more than 25% of either the
      aggregate ordinary voting power represented by the issued and outstanding Equity
      Interests in Holdings and such Person or group beneficially owns at such time,
      directly or indirectly (without giving effect, for avoidance of doubt, to shares
      owned by Heartland and its Affiliates), a greater percentage of the aggregate
      ordinary voting power of Holdings than the aggregate ordinary voting power
      of
      Holdings that is beneficially owned at such time, directly or indirectly,
      (without giving effect, for avoidance of doubt, to shares owned by such Person),
      by Heartland and its Affiliates; (d) occupation of a majority of the seats
      on
      the board of directors of Holdings by Persons who were not nominated by
      Heartland and its Affiliates; or (e) the occurrence of any change in
      control (or similar event, however denominated) with respect to Holdings or
      the
      Parent Borrower under (i) any indenture or agreement in respect of Material
      Indebtedness to which Holdings, the Parent Borrower or

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    7

     

    

    any
      Subsidiary is a party,(ii) any instrument governing any preferred stock of
      Holdings, the Parent Borrower or any Subsidiary having a liquidation value
      or
      redemption value in excess of $15,000,000 or (iii) the Permitted
      Receivables Financing.

     

    "Change
      in Law"
      means
      (a) the adoption of any law, rule or regulation after the date of this
      Agreement, (b) any change in any law, rule or regulation or in the
      interpretation or application thereof by any Governmental Authority after the
      date of this Agreement or (c) compliance by any Lender or the Issuing Bank
      (or, for purposes of Section 2.15(b), by any lending office of such Lender
      or by
      such Lender's or the Issuing Bank's holding company, if any) with any request,
      guideline or directive (whether or not having the force of law) of any
      Governmental Authority made or issued after the date of this
      Agreement.

     

    "Chase"
      means
      JPMorgan Chase Bank.

     

    "Class",
      when
      used in reference to any Loan or Borrowing, refers to whether such Loan, or
      the
      Loans comprising such Borrowing, are Revolving Loans, Tranche D Term Loans
      or Swingline Loans and, when used in reference to any Commitment, refers to
      whether such Commitment is a Revolving Commitment or Tranche D
      Commitment.

     

    "Code"
      means
      the Internal Revenue Code of 1986, as amended from time to time.

     

    "Collateral"
      means
      any and all "Collateral", as defined in any applicable Security
      Document.

     

    "Collateral
      Agent"
      means
      Chase, in its capacity as collateral agent for the Lenders under the Security
      Documents. With respect to Foreign Currency Borrowings, the Collateral Agent
      may
      be an Affiliate of Chase, for purposes of administering the collateralization
      of
      such Borrowings, and all references herein to the term "Collateral Agent" shall
      be deemed to refer to the Collateral Agent in respect of the applicable
      Borrowing or to all Collateral Agents, as the context requires.

     

    "Collateral
      and Guarantee Requirement"
      means
      the requirement that:

     

    (a)
      the
      Collateral Agent shall have received from each party thereto (other than the
      Collateral Agent) either (i) a counterpart of (A) the Guarantee
      Agreement, (B) the Indemnity, Subrogation and Contribution Agreement,
      (C) the Pledge Agreement and (D) the Security Agreement, in each case
      duly executed and delivered on behalf of such Loan Party or (ii) in the case
      of
      any Person that becomes a Loan Party after the Effective Date, a supplement
      to
      each of the Guarantee Agreement, the Indemnity, Subrogation and Contribution
      Agreement, the Pledge Agreement and the Security Agreement, in each case in
      the
      form specified therein, duly executed and delivered on behalf of such Loan
      Party;

     

    (b)
      all
      outstanding Equity Interests of the Parent Borrower and each Subsidiary
      (including the Receivables Subsidiary) owned by or on behalf of any

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    8

     

    

    Loan
      Party shall have been pledged pursuant to the Pledge Agreement (except that
      the
      Loan Parties shall not be required to pledge more than 65% of the outstanding
      voting Equity Interests of any Foreign Subsidiary, it being understood that
      this
      exception shall not limit the application of the Foreign Security Collateral
      and
      Guarantee Requirement) and the Collateral Agent shall have received certificates
      or other instruments representing all such Equity Interests, together with
      stock
      powers or other instruments of transfer with respect thereto endorsed in
      blank;

     

    (c)
      all
      Indebtedness of Holdings, the Parent Borrower and each Subsidiary in an
      aggregate principal amount that exceeds $500,000 that is owing to any Loan
      Party
      shall be evidenced by a promissory note and shall have been pledged pursuant
      to
      the Pledge Agreement and the Collateral Agent shall have received all such
      promissory notes, together with instruments of transfer with respect thereto
      endorsed in blank;

     

    (d)
      all
      documents and instruments, including Uniform Commercial Code financing
      statements, required by law or reasonably requested by the Collateral Agent
      to
      be filed, registered or recorded to create the Liens intended to be created
      by
      the Security Agreement and the Pledge Agreement and perfect such Liens to the
      extent required by, and with the priority required by, the Security Agreement
      and the Pledge Agreement shall have been filed, registered or recorded or
      delivered to the Collateral Agent for filing, registration or
      recording;

     

    (e)
      the
      Collateral Agent shall have received (i) counterparts of a Mortgage with
      respect to each Mortgaged Property duly executed and delivered by the record
      owner of such Mortgaged Property, (ii) a policy or policies of title insurance
      issued by a nationally recognized title insurance company insuring the Lien
      of
      each such Mortgage as a valid first Lien on the Mortgaged Property described
      therein, free of any other Liens except as expressly permitted by
      Section 6.02, together with such endorsements, coinsurance and reinsurance
      as the Administrative Agent or the Required Lenders may reasonably request,
      and
      (iii) such surveys, abstracts, appraisals, legal opinions and other documents
      as
      the Administrative Agent or the Required Lenders may reasonably request with
      respect to any such Mortgage or Mortgaged Property; provided
      that
      with respect to any Mortgaged Property as to which a Mortgage was recorded
      prior
      to the Effective Date, the requirements of this paragraph shall be limited
      to
      such supplements, amendments and bring-downs as the Collateral Agent shall
      reasonably request; and

     

    (f)
      each
      Loan Party (other than the Foreign Subsidiary Borrowers) shall have obtained
      all
      consents and approvals required to be obtained by it in connection with the
      execution and delivery of all Security Documents to which it is a party, the
      performance of its obligations thereunder and the granting by it of the Liens
      thereunder.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9

     

    

    "Commitment"
      means a
      Revolving Commitment or Tranche D Commitment, or a combination thereof (as
      the context requires).

     

    "Compac
      Event"
      means
      the damage to any property owned by Compac Corporation and its subsidiaries
      resulting from floods occurring in August, 2000.

     

    "Consolidated
      Cash Interest Expense"
      means,
      for any period, the excess of (a) the sum, without duplication, of
      (i) the interest expense (including imputed interest expense in respect of
      Capital Lease Obligations) of Holdings, the Parent Borrower and the Subsidiaries
      (including the Receivables Subsidiary) for such period, determined on a
      consolidated basis in accordance with GAAP, (ii) any interest accrued during
      such period in respect of Indebtedness of Holdings, the Parent Borrower or
      any
      Subsidiary (including the Receivables Subsidiary) that is required to be
      capitalized rather than included in consolidated interest expense for such
      period in accordance with GAAP, plus (iii) any cash payments made during
      such period in respect of obligations referred to in clause (b)(iii) below
      that were amortized or accrued in a previous period, plus
      (iv) interest-equivalent costs associated with any Permitted Receivables
      Financing, whether accounted for as interest expense or loss on the sale of
      receivables minus (b) the sum of, without duplication, (i) interest
      income of Holdings, the Parent Borrower and the Subsidiaries (including the
      Receivables Subsidiary) for such period, determined on a consolidated basis
      in
      accordance with GAAP, (ii) to the extent included in such consolidated
      interest expense for such period, noncash amounts attributable to amortization
      of financing costs paid in a previous period, plus (iii) to the extent included
      in such consolidated interest expense for such period, noncash amounts
      attributable to amortization of debt discounts or accrued interest payable
      in
      kind for such period, plus (iv) to the extent included in such consolidated
      interest expense for such period, all financing fees incurred in connection
      with
      the Transactions. For purposes of calculating Consolidated Cash Interest Expense
      for each of the four-fiscal-quarter periods ending December 31, 2000,
      March 31, 2001 and June 30, 2001, Consolidated Cash Interest Expense
      for such four-fiscal-quarter period shall equal Consolidated Cash Interest
      Expense for the period commencing October 1, 2000 and ending on
      (a) December 31, 2000, multiplied by 4, (b) March 31, 2001,
      multiplied by 2 and (c) June 30, 2001, multiplied by 4/3.
      Notwithstanding the foregoing, the defined term "Consolidated Cash Interest
      Expense" shall not include any interest expense in respect of $205,000,000
      aggregate principal amount of Convertible Debentures during the 90-day period
      following the consummation of the TriMas Transaction.

     

    "Consolidated
      EBITDA"
      means,
      for any period, Consolidated Net Income for such period plus (a) without
      duplication and to the extent deducted in determining such Consolidated Net
      Income, the sum of (i) consolidated interest expense for such period,
      (ii) consolidated income tax expense for such period (including all single
      business tax expenses imposed by state law), (iii) all amounts attributable
      to depreciation and amortization for such period, (iv) any extraordinary
      noncash charges for such period, (v) all management fees and other fees
      paid during such period to Heartland and/or its Affiliates pursuant to the
      Heartland Management Agreement to the extent permitted by Section 6.09,
      (vi) all payments made during and expenses recorded in such period in
      respect of the Restricted Stock Obligation and all items expensed at the
      Recapitalization

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10

     

    

    Date
      in
      respect of Restricted Stock Awards, (vii) any losses incurred during such
      period in connection with the sale of receivables pursuant to the Permitted
      Receivables Financing, (viii) all extraordinary losses during such period,
      (ix) noncash expenses during such period resulting from the grant of Equity
      Interests to management and employees of Holdings, the Parent Borrower or any
      of
      the Subsidiaries, (x) the aggregate amount of deferred financing expenses
      for such period, (xi) all other noncash expenses or losses of Holdings, the
      Parent Borrower or any of the Subsidiaries for such period (excluding any such
      charge that constitutes an accrual of or a reserve for cash charges for any
      future period), (xii) any nonrecurring fees, expenses or charges realized
      by Holdings, the Parent Borrower or any of the Subsidiaries for such period
      related to any offering of Equity Interests or incurrence of Indebtedness,
      (xiii) with respect to any four-fiscal-quarter period ending prior to or on
      December 31, 2001, operating expense and other expense reductions and other
      synergistic benefits relating to the Recapitalization Transactions, not to
      exceed the applicable Excluded Amount for such period, (xiv) Excluded
      Severance Charges for such period, (xv) fees and expenses in connection
      with the Transactions and fees and expenses of Holdings, the Parent Borrower
      and
      its Subsidiaries (excluding TriMas and the subsidiaries of TriMas) in connection
      with the TriMas Transaction, (xvi) any nonrecurring costs and expenses
      arising from the integration of any business acquired pursuant to any Permitted
      Acquisition (other than the New Castle Acquisition), (xvii) solely for
      purposes of determining compliance with Section 6.14, fees paid pursuant to
      Section 18 of Amendment No. 1 to the Original Credit Agreement;
provided
      that the
      aggregate amount of costs and expenses that may be included in Consolidated
      EBITDA pursuant to this clause (xvii) during the term of this Agreement
      shall not exceed $5,000,000, (xviii) for all purposes hereunder, other than
      the
      defined term "Applicable Rate", the New Castle Specified EBITDA, (xix) solely
      for purposes of determining compliance with Section 6.14, fees paid pursuant
      to
      Section 14 of this Amendment No. 1, (xx) solely for purposes of
      determining compliance with Section 6.13 and Section 6.14 and the use
      of the defined term Senior Leverage Ratio, fees and expenses paid in connection
      with the Internal Evaluation (as defined in the Waiver and Amendment No. 2
      to this Agreement dated as of May 26, 2004) and as a consequence thereof,
      (xxi) nonrecurring charges and expenses in an aggregate amount not to
      exceed $8,000,000 related primarily to headcount reductions during the period
      from and including the first day of the first fiscal quarter of 2005 to and
      including the last day of the first fiscal quarter of 2006, (xxii) charges
      not
      to exceed in the aggregate $2,500,000 (calculated by the Parent Borrower in
      its
      reasonable judgment and good faith) incurred in connection with the Parent
      Borrower's accelerated collection programs wound down and/or terminated after
      June 30, 2004, to the extent such charges are not offset by accounts receivable
      being included in, or such programs being replaced by, another financing program
      of the Parent Borrower", (xxiii) any charges or losses incurred in
      connection with the termination of leases and the purchase of related lease
      property and (xxiv) any lease payments made during the last twelve months
      with respect to operating leases terminated in accordance with Section 5.16
      or otherwise and minus (b) without duplication and to the extent included
      in determining such Consolidated Net Income, any extraordinary gains for such
      period, all determined on a consolidated basis in accordance with GAAP. For
      purposes of determining the Leverage Ratio, Senior Leverage Ratio and Senior
      Secured Leverage Ratio, if the Parent Borrower or any Subsidiary has made
      any

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    11

     

    

    Permitted
      Acquisition or any sale, transfer, lease or other disposition of assets outside
      of the ordinary course of business permitted by Section 6.05 during the
      relevant period for determining the Leverage Ratio, Senior Leverage Ratio and
      Senior Secured Leverage Ratio, Consolidated EBITDA for the relevant period
      shall
      be calculated only for purposes of determining Leverage Ratio, Senior Leverage
      Ratio and Senior Secured Leverage Ratio, after giving pro forma effect thereto,
      as if such Permitted Acquisition or sale, transfer, lease or other disposition
      of assets (and, in each case, any related incurrence, repayment or assumption
      of
      Indebtedness, with any new Indebtedness being deemed to be amortized over the
      relevant period in accordance with its terms, and assuming that any Revolving
      Loans borrowed in connection with such acquisition are repaid with excess cash
      balances when available) had occurred on the first day of the relevant period
      for determining Consolidated EBITDA. Any such pro forma calculations may include
      operating and other expense reductions and other adjustments for such period
      resulting from any Permitted Acquisition (other than the New Castle Acquisition,
      except to the extent of any calculation of the Applicable Rate) that is being
      given pro forma effect to the extent that such operating and other expense
      reductions and other adjustments (a) would be permitted pursuant to
      Article XI of Regulation S-X under the Securities Act of 1933 or
      (b) are reasonably consistent with the purpose of Regulation S-X as
      determined in good faith by the Parent Borrower in consultation with the
      Administration Agent. For the purpose of calculating Consolidated EBITDA for
      the
      four quarter periods ending December 31, 2004, March 31, 2005,
      June 30, 2005, September 30, 2005 and December 31, 2005,
      Consolidated EBITDA shall be additionally increased by $1,500,000, $2,700,000,
      $1,900,000, $1,300,000 and $500,000, respectively.

     

    "Consolidated
      Lease Expense"
      shall
      mean, for any period, all rental expenses of Holdings, the Parent Borrower
      and
      the Subsidiaries (including the Receivables Subsidiary) during such period
      under
      operating leases for real or personal property, excluding real estate taxes,
      insurance costs and common area maintenance charges and net of sublease income,
      other than Capitalized Lease Obligations, all as determined on a consolidated
      basis in accordance with GAAP.

     

    "Consolidated
      Net Income"
      means,
      for any period, the net income or loss of Holdings, the Parent Borrower and
      the
      Subsidiaries (including the Receivables Subsidiary) for such period determined
      on a consolidated basis in accordance with GAAP; provided
      that
      there shall be excluded (a) the income of any Person (other than the Parent
      Borrower) in which any other Person (other than the Parent Borrower or any
      Subsidiary or any director holding qualifying shares in compliance with
      applicable law) owns an Equity Interest, except to the extent of the amount
      of
      dividends or other distributions actually paid to the Parent Borrower or any
      of
      the Subsidiaries during such period, and (b) the income or loss of any
      Person accrued prior to the date it becomes a Subsidiary or is merged into
      or
      consolidated with the Parent Borrower or any Subsidiary or the date that such
      Person's assets are acquired by the Parent Borrower or any
      Subsidiary.

     

    "Control"
      means
      the possession, directly or indirectly, of the power to direct or cause the
      direction of the management or policies of a Person, whether
      through

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    12

     

    

    the
      ability to exercise voting power, by contract or otherwise. "Controlling"
      and
      "Controlled"
      have
      meanings correlative thereto.

     

    "Conversion
      Right"
      means
      the right of the Debenture Holders after the Merger to convert their Convertible
      Debentures into the amount of cash that the Debenture Holders would have
      received if such Convertible Debentures had been converted into common stock
      of
      Holdings immediately prior to the Merger, as provided in Section 3.06 of
      the Convertible Debentures Indenture.

     

    "Convertible
      Debentures"
      means
      the 41⁄2% Convertible Subordinated Debentures of Holdings issued under the
      Convertible Debentures Indenture in an aggregate principal amount not greater
      than $305,000,000, which after the Asset Dropdown became joint and several
      obligations of the Parent Borrower and Holdings.

     

    "Convertible
      Debentures Indenture"
      means
      the Indenture dated as of November 1, 1986, between Holdings and Morgan
      Guaranty Trust Company of New York, as amended by the two Supplemental
      Indentures dated the Recapitalization Date.

     

    "Credit
      Facility"
      means a
      category of Commitments and extensions of credit thereunder.

     

    "Debenture
      Account"
      means
      an account established with the Administrative Agent in the name of the
      Administrative Agent and for the benefit of the Lenders having the terms
      specified in Exhibit B, all proceeds in which will be used to defease,
      redeem, repay or repurchase or otherwise retire Convertible Debentures as
      specified in this Agreement.

     

    "Debenture
      Holders"
      means
      the holders of record, from time to time, of the Convertible
      Debentures.

     

    "Debenture
      Maturity Date"
      means
      December 15, 2003.

     

    "Default"
      means
      any event or condition which constitutes an Event of Default or which upon
      notice, lapse of time or both would, unless cured or waived, become an Event
      of
      Default.

     

    "Disclosed
      Matters"
      means
      the actions, suits and proceedings and the environmental matters disclosed
      in
      Schedule 3.06 to the Original Credit Agreement.

     

    "dollars"
      or
      "$"
      refers
      to lawful money of the United States of America.

     

    "Dollar
      Equivalent"
      means,
      on any date of determination, (a) with respect to any amount in dollars,
      such amount, and (b) with respect to any amount in any Foreign Currency,
      the equivalent in dollars of such amount, determined by the Administrative
      Agent
      pursuant to Section 1.05(b) using the Exchange Rate with respect to such
      Foreign Currency at the time in effect under the provisions of such
      Section.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    13

     

    

    "Domestic
      Loan Party"
      means
      any Loan Party, other than the Foreign Subsidiary Borrowers.

     

    "Effective
      Date"
      means
      June 20, 2002.

     

    "EMU
      Legislation"
      means
      the legislative measures of the European Union for the introduction of,
      changeover to or operation of the Euro in one or more member
      states.

     

    "Environmental
      Laws"
      means
      all laws, rules, regulations, codes, ordinances, orders, decrees, judgments,
      injunctions, notices or binding agreements issued, promulgated or entered into
      by any Governmental Authority, relating in any way to the environment,
      preservation or reclamation of natural resources, the management, Release or
      threatened Release of any Hazardous Material or to health and safety
      matters.

     

    "Environmental
      Liability"
      means
      any liabilities, obligations, damages, losses, claims, actions, suits,
      judgments, or orders, contingent or otherwise (including any liability for
      damages, costs of environmental remediation, costs of administrative oversight,
      fines, natural resource damages, penalties or indemnities), of Holdings, the
      Parent Borrower or any Subsidiary (including the Receivables Subsidiary)
      directly or indirectly resulting from or relating to (a) compliance or
      non-compliance with any Environmental Law, (b) the generation, use,
      handling, transportation, storage, treatment or disposal of any Hazardous
      Materials, (c) any actual or alleged exposure to any Hazardous Materials,
      (d) the Release or threatened Release of any Hazardous Materials or (e) any
      contract, agreement or other consensual arrangement pursuant to which liability
      is assumed or imposed with respect to any of the foregoing.

     

    "Equity
      Interests"
      means
      shares of capital stock, partnership interests, membership interests in a
      limited liability company, beneficial interests in a trust or other equity
      ownership interests in a Person or any warrants, options or other rights to
      acquire such interests.

     

    "Equity
      Rollover"
      means
      the issuance of common stock of Holdings on the Recapitalization Date to the
      Continuing Shareholders (as defined in the Recapitalization Agreement) or their
      permitted transferees under the Exchange and Voting Agreement (as defined in
      the
      Recapitalization Agreement), in each case pursuant to and in accordance with
      Section 2.04(d) of the Recapitalization Agreement.

     

    "ERISA"
      means
      the Employee Retirement Income Security Act of 1974, as amended from time to
      time.

     

    "ERISA
      Affiliate"
      means
      any trade or business (whether or not incorporated) that, together with the
      Parent Borrower, is treated as a single employer under Section 414(b) or
      (c) of the Code or, solely for purposes of Section 302 of ERISA and Section
      412 of the Code, is treated as a single employer under Section 414 of the
      Code.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    14

     

    

    "ERISA
      Event"
      means
      (a) any "reportable event", as defined in Section 4043 of ERISA or the
      regulations issued thereunder with respect to a Plan (other than an event for
      which the 30-day notice period is waived); (b) the existence with respect
      to any Plan of an "accumulated funding deficiency" (as defined in
      Section 412 of the Code or Section 302 of ERISA), whether or not
      waived; (c) the filing pursuant to Section 412(d) of the Code or
      Section 303(d) of ERISA of an application for a waiver of the minimum
      funding standard with respect to any Plan; (d) the incurrence by the Parent
      Borrower or any of its ERISA Affiliates of any liability under Title IV of
      ERISA with respect to the termination of any Plan; (e) the receipt by the
      Parent Borrower or any ERISA Affiliate from the PBGC or a plan administrator
      of
      any notice relating to an intention to terminate any Plan or Plans or to appoint
      a trustee to administer any Plan; (f) the incurrence by the Parent Borrower
      or any of its ERISA Affiliates of any liability with respect to the withdrawal
      or partial withdrawal from any Plan or Multiemployer Plan; or (g) the
      receipt by the Parent Borrower or any ERISA Affiliate of any notice, or the
      receipt by any Multiemployer Plan from the Parent Borrower or any ERISA
      Affiliate of any notice, concerning the imposition of Withdrawal Liability
      or a
      determination that a Multiemployer Plan is, or is expected to be, insolvent
      or
      in reorganization, within the meaning of Title IV of ERISA.

     

    "Euro"
      or "€"
      means the single currency of the European Union as constituted by the Treaty
      on
      European Union and as referred to in the EMU Legislation.

     

    "Eurocurrency",
      when
      used in reference to any Loan or Borrowing, refers to whether such Loan, or
      the
      Loans comprising such Borrowing, are bearing interest at a rate determined
      by
      reference to the Adjusted LIBO Rate.

     

    "Event
      of Default"
      has the
      meaning assigned to such term in Article VII.

     

    "Excess
      Cash Flow"
      means,
      for any fiscal year, the sum (without duplication) of:

     

    (a)
      the
      consolidated net income (or loss) of Holdings, the Parent Borrower and its
      consolidated Subsidiaries (including the Receivables Subsidiary) for such fiscal
      year, adjusted to exclude any gains or losses attributable to Prepayment Events;
      plus

     

    (b)
      the
      excess, if any, of the Net Proceeds received during such fiscal year by
      Holdings, the Parent Borrower and its consolidated Subsidiaries (including
      the
      Receivables Subsidiary) in respect of any Prepayment Events over the aggregate
      principal amount of Term Loans prepaid pursuant to Section 2.11(d) (and, as
      applicable to such fiscal year, Existing Term Loans prepaid pursuant to Section
      2.11(d) of the Original Credit Agreement) in respect of such Net Proceeds;
      plus

     

    (c)
      depreciation, amortization and other noncash charges or losses deducted in
      determining such consolidated net income (or loss) for such fiscal year;
plus

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    15

     

    

    (d)
      the
      sum of (i) the amount, if any, by which Net Working Capital (adjusted to
      exclude changes arising from Permitted Acquisitions) decreased during such
      fiscal year plus (ii) the net amount, if any, by which the consolidated deferred
      revenues and other consolidated accrued long-term liability accounts of
      Holdings, the Parent Borrower and its consolidated Subsidiaries (including
      the
      Receivables Subsidiary) (adjusted to exclude changes arising from Permitted
      Acquisitions) increased during such fiscal year plus (iii) the net amount,
      if
      any, by which the consolidated accrued long-term asset accounts of Holdings,
      Parent Borrower and its consolidated Subsidiaries (including the Receivables
      Subsidiary) (adjusted to exclude changes arising from Permitted Acquisitions)
      decreased during such fiscal year; minus

     

    (e)
      the
      sum of (i) any noncash gains included in determining such consolidated net
      income (or loss) for such fiscal year plus (ii) the amount, if any, by which
      Net
      Working Capital (adjusted to exclude changes arising from Permitted
      Acquisitions) increased during such fiscal year plus (iii) the net amount,
      if
      any, by which the consolidated deferred revenues and other consolidated accrued
      long-term liability accounts of Holdings, the Parent Borrower and its
      consolidated Subsidiaries (including the Receivables Subsidiary) (adjusted
      to
      exclude changes arising from Permitted Acquisitions) decreased during such
      fiscal year plus (iv) the net amount, if any, by which the consolidated accrued
      long-term asset accounts of Holdings, the Parent Borrower and its consolidated
      Subsidiaries (including the Receivables Subsidiary) (adjusted to exclude changes
      arising from Permitted Acquisitions) increased during such fiscal year;
minus

     

    (f)
      the
      sum of (i) Capital Expenditures for such fiscal year (except to the extent
      attributable to the incurrence of Capital Lease Obligations or otherwise
      financed by incurring Long-Term Indebtedness) plus
      (ii) cash consideration paid during such fiscal year to make acquisitions
      or other capital investments (except to the extent financed by incurring
      Long-Term Indebtedness); minus

     

    (g)
      the
      aggregate principal amount of Long-Term Indebtedness repaid or prepaid by
      Holdings, the Parent Borrower and its consolidated Subsidiaries (including
      the
      Receivables Subsidiary) during such fiscal year, excluding (i) Indebtedness
      in respect of Revolving Loans and Letters of Credit, (ii) Term Loans
      prepaid pursuant to Section 2.11(d) or (f) (and, as applicable to such fiscal
      year, Existing Term Loans prepaid pursuant to Section 2.11(d) or (f) of the
      Original Credit Agreement) and (iii) repayments or prepayments of Long-Term
      Indebtedness financed by incurring other Long-Term Indebtedness; minus

     

    (h)
      [intentionally omitted];

     

    (i)
      the
      noncash impact of currency translations and other adjustments to the equity
      account, including adjustments to the carrying value of marketable securities
      and to pension liabilities, in each case to the extent such items would
      otherwise constitute Excess Cash Flow.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    16

     

    

    "Exchange
      Rate"
      means
      on any day, with respect to any Foreign Currency, the rate at which such Foreign
      Currency may be exchanged into dollars, as set forth at approximately
      11:00 a.m., London time, on such day on the Reuters World Currency Page for
      such Foreign Currency. In the event that such rate does not appear on any
      Reuters World Currency Page, the Exchange Rate shall be determined by reference
      to such other publicly available service for displaying exchange rates as may
      be
      agreed upon by the Administrative Agent and the Parent Borrower, or, in the
      absence of such agreement, such Exchange Rate shall instead be the arithmetic
      average of the spot rates of exchange of the Administrative Agent in the market
      where its foreign currency exchange operations in respect of such Foreign
      Currency are then being conducted, at or about 10:00 a.m., local time, on
      such date for the purchase of dollars for delivery two Business Days later;
provided
      that if
      at the time of any such determination, for any reason, no such spot rate is
      being quoted, the Administrative Agent, after consultation with the Parent
      Borrower, may use any reasonable method it deems appropriate to determine such
      rate, and such determination shall be conclusive absent manifest
      error.

     

    "Excluded
      Amount"
      means,
      with respect to any fiscal period ending on the date specified below, the amount
      set forth opposite such date:

    

    
      	
              Date

               

            	
              Amount

               

            
	
              December 31,
                2000

               

            	
              $15,000,000

               

            
	
              March 31,
                2001

               

            	
              $15,000,000

               

            
	
              June 30,
                2001

               

            	
              $12,500,000

               

            
	
              September 20,
                2001

               

            	
              $10,000,000

               

            
	
              December 31,
                2001

               

            	
              $
                7,500,000

               

            

    

    

    "Excluded
      Severance Charges"
      means
      any nonrecurring severance or similar costs relating to the termination of
      employment of any employees arising during any four-fiscal-quarter period ending
      on or prior to December 31, 2003, not to exceed in the aggregate for all
      such periods $12,500,000.

     

    "Excluded
      Taxes"
      means,
      with respect to the Administrative Agent, any Lender, the Issuing Bank or any
      other recipient of any payment to be made by or on account of any obligation
      of
      the Parent Borrower or any Foreign Subsidiary Borrower hereunder,
      (a) income or franchise taxes imposed on (or measured by) its net income by
      the United States of America, or by the jurisdiction under the laws of
      which such recipient is organized or in which its principal office is located
      or, in the case of any Lender, in which its applicable lending office is
      located, (b) any branch profits Taxes imposed by the United States of
      America or any similar Tax imposed by any other jurisdiction described in
      clause (a) above and (c) in the case of a Foreign Lender (other than
      an assignee pursuant to a request by the Parent Borrower under
      Section 2.19(b)), (i) any United States withholding Tax that is
      in effect and would apply to amounts payable to such Foreign Lender at the
      time
      such Foreign Lender becomes a party to this Agreement (or designates a new
      lending office), except to the extent that such Foreign Lender (or its assignor,
      if any) was entitled, at the time of designation of a new lending 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    17

     

    

    office
      (or assignment), to receive additional amounts from the Parent Borrower with
      respect to any United States withholding Tax pursuant to Section 2.17(a)
      and (ii) any withholding Tax that is attributable to such Foreign Lenders'
      failure to comply with Section 2.17(e).

     

    "Existing
      Letters of Credit"
      means
      the letters of credit issued under the Original Credit Agreement and outstanding
      as of the Effective Date, which are listed on
      Schedule 1.01(a).

     

    "Existing
      Subordinated Notes"
      means
      the 11% Subordinated Notes of Holdings due 2012 in the aggregate principal
      amount of $250,000,000 (including the Exchange Notes issued in exchange for
      the
      initial Existing Subordinated Notes as contemplated by the registration rights
      agreement related thereto) and the Indebtedness represented
      thereby.

     

    "Existing
      Subordinated Notes Documents"
      means
      the Existing Subordinated Notes, the indenture under which the Existing
      Subordinated Notes are issued and all other documents evidencing, guaranteeing
      or otherwise governing the terms of the Existing Subordinated
      Notes.

     

    "Federal
      Funds Effective Rate"
      means,
      for any day, the weighted average (rounded upwards, if necessary, to the next
      1/100 of 1%) of the rates on overnight Federal funds transactions with members
      of the Federal Reserve System arranged by Federal funds brokers, as published
      on
      the next succeeding Business Day by the Federal Reserve Bank of New York,
      or, if such rate is not so published for any day that is a Business Day, the
      average (rounded upwards, if necessary, to the next 1/100 of 1%) of the
      quotations for such day for such transactions received by the Administrative
      Agent from three Federal funds brokers of recognized standing selected by
      it.

     

    "Financial
      Officer"
      means
      the chief financial officer, principal accounting officer, treasurer or
      controller of the Parent Borrower.

     

    "Foreign
      Currencies"
      means
      Euro and Sterling.

     

    "Foreign
      Currency Commitment"
      means,
      with respect to each Revolving Lender, the commitment of such Revolving Lender
      to make Foreign Currency Loans and to acquire participations in Foreign Currency
      Letters of Credit, expressed as an amount representing the maximum aggregate
      amount of such Revolving Lender's Foreign Currency Exposure hereunder, as such
      commitment may be reduced from time to time pursuant to Section 2.08 and
      (b) reduced or increased from time to time pursuant to assignments by or to
      such Revolving Lender pursuant to Section 10.04. The initial amount of each
      Revolving Lender's Foreign Currency Commitment is set forth on
      Schedule 2.01, or in the Assignment and Acceptance pursuant to which such
      Revolving Lender shall have assumed its Foreign Currency Commitment, as
      applicable. The initial aggregate amount of the Revolving Lenders' Foreign
      Currency Commitments is the Dollar Equivalent of $75,000,000.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    18

     

    

    "Foreign
      Currency Exposure"
      means,
      with respect to any Revolving Lender at any time, the Dollar Equivalent of
      the
      sum of the outstanding principal amount of such Lender's Foreign Currency Loans
      and its Foreign Currency LC Exposure at such time.

     

    "Foreign
      Currency LC Exposure"
      means,
      at any time, the sum of (a) the aggregate undrawn amount of all outstanding
      Foreign Currency Letters of Credit at such time plus (b) the aggregate
      amount of all LC Disbursements in respect of Foreign Currency Letters of Credit
      that have not yet been reimbursed by or on behalf of the Foreign Subsidiary
      Borrowers at such time. The Foreign Currency LC Exposure of any Revolving Lender
      at any time shall be its Applicable Percentage of the total Foreign Currency
      LC
      Exposure at such time.

     

    "Foreign
      Currency Letter of Credit"
      means a
      Letter of Credit denominated in a Foreign Currency.

     

    "Foreign
      Currency Loan"
      means a
      Revolving Loan denominated in a Foreign Currency.

     

    "Foreign
      Factoring Arrangement"
      means
      any factoring arrangements entered into by any Foreign Subsidiary with respect
      to accounts receivable of such entity that are held in Europe, Mexico or Canada
      pursuant to customary terms, provided
      that the
      aggregate recourse and exposure in respect thereof shall not at any time exceed
      $15,000,000.

     

    "Foreign
      Lender"
      means
      any Lender that is organized under the laws of a jurisdiction other than that
      in
      which the Parent Borrower or any Foreign Subsidiary Borrower, as the case may
      be, is located. For purposes of this definition, the United States of
      America, each State thereof and the District of Columbia shall be deemed to
      constitute a single jurisdiction.

     

    "Foreign
      Security Collateral and Guarantee Requirement"
      means
      the requirement that:

     

    (a) the
      Collateral Agent shall have received from the applicable Foreign Subsidiary
      Borrower and its subsidiaries a counterpart of each Foreign Security Document
      relating to the assets (including the capital stock of its subsidiaries) of
      such
      Foreign Subsidiary Borrower, excluding assets as to which the Collateral Agent
      shall determine in its reasonable discretion, after consultation with the Parent
      Borrower, that the costs and burdens of obtaining a security interest are
      excessive in relation to the value of the security afforded
      thereby;

     

    (b) all
      documents and instruments (including legal opinions) required by law or
      reasonably requested by the Collateral Agent to be filed, registered or recorded
      to create the Liens intended to be created over the assets specified in
      clause (a) above and perfect such Liens to the extent required by, and with
      priority required by, such Foreign Security Documents, shall have been filed,
      

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    19

     

    

    registered
      or recorded or delivered to the Collateral Agent for filing, registration or
      recording;

     

    (c) such
      Foreign Subsidiary Borrower and its subsidiaries shall become a guarantor of
      the
      obligations under the Loan Documents of other Foreign Subsidiary Borrowers,
      if
      any, under a guarantee agreement reasonably acceptable to the Collateral Agent,
      in either case duly executed and delivered on behalf of such Foreign Subsidiary
      Borrower and such subsidiaries, except that such guarantee shall not be required
      if the Collateral Agent shall determine in its reasonable discretion, after
      consultation with the Parent Borrower, that the benefits of such a guarantee
      are
      limited and such limited benefits are not justified in relation to the burdens
      imposed by such guarantee on the Parent Borrower and its Subsidiaries;
      and

     

    (d) such
      Foreign Subsidiary Borrower shall have obtained all consents and approvals
      required to be obtained by it in connection with the execution of such Foreign
      Security Documents, the performance and obligations thereunder and the granting
      by it of the Liens thereunder.

     

    "Foreign
      Security Documents"
      means
      any agreement or instrument entered into by any Foreign Subsidiary Borrower
      that
      is reasonably requested by the Collateral Agent providing for a Lien over the
      assets (including shares of other Subsidiaries) of such Foreign Subsidiary
      Borrower.

     

    "Foreign
      Subsidiary"
      means
      any Subsidiary that is organized under the laws of a jurisdiction other than
      the
      United States of America or any State thereof or the District of
      Columbia.

     

    "Foreign
      Subsidiary Borrowers"
      means
      any wholly owned Foreign Subsidiary of the Parent Borrower organized under
      the
      laws of England and Wales, any member nation of the European Union or any other
      nation in Europe reasonably acceptable to the Collateral Agent that becomes
      a
      party to this Agreement pursuant to Section 2.21.

     

    "Foreign
      Subsidiary Borrowing Agreement"
      means
      an agreement substantially in the form of Exhibit C.

     

    "GAAP"
      means
      generally accepted accounting principles in the United States of
      America.

     

    "Governmental
      Authority"
      means
      the government of the United States of America, any other nation or any
      political subdivision thereof, whether state or local, and any agency,
      authority, instrumentality, regulatory body, court, central bank or other entity
      exercising executive, legislative, judicial, taxing, regulatory or
      administrative powers or functions of or pertaining to government.

     

    "Guarantee"
      of or
      by any Person (the "guarantor")
      means
      any obligation, contingent or otherwise, of the guarantor guaranteeing or having
      the economic effect of 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    20

     

    

    guaranteeing
      any Indebtedness or other obligation of any other Person (the "primary
      obligor")
      in any
      manner, whether directly or indirectly, and including any obligation of the
      guarantor, direct or indirect, (a) to purchase or pay (or advance or supply
      funds for the purchase or payment of) such Indebtedness or other obligation
      or
      to purchase (or to advance or supply funds for the purchase of) any security
      for
      the payment thereof, (b) to purchase or lease property, securities or
      services for the purpose of assuring the owner of such Indebtedness or other
      obligation of the payment thereof, (c) to maintain working capital, equity
      capital or any other financial statement condition or liquidity of the primary
      obligor so as to enable the primary obligor to pay such Indebtedness or other
      obligation or (d) as an account party in respect of any letter of credit or
      letter of guaranty issued to support such Indebtedness or obligation;
provided,
      that
      the term Guarantee shall not include endorsements for collection or deposit
      in
      the ordinary course of business.

     

    "Guarantee
      Agreement"
      means
      the Guarantee Agreement, substantially in the form of Exhibit D, made by
      Holdings, the Parent Borrower and the Subsidiary Loan Parties party thereto
      in
      favor of the Collateral Agent for the benefit of the Secured
      Parties.

     

    "Hazardous
      Materials"
      means
      all explosive, radioactive, hazardous or toxic substances, wastes or other
      pollutants, including petroleum or petroleum distillates, asbestos or asbestos
      containing materials, polychlorinated biphenyls, radon gas, infectious or
      medical wastes and all other substances or wastes of any nature regulated
      pursuant to any Environmental Law.

     

    "Heartland"
      means
      Heartland Industrial Partners, L.P., a Delaware limited
      partnership.

     

    "Heartland
      Management Agreement"
      means
      the monitoring agreement dated as of the Recapitalization Date between Heartland
      and Holdings.

     

    "Hedging
      Agreement"
      means
      any interest rate protection agreement, foreign currency exchange agreement,
      commodity price protection agreement or other interest or currency exchange
      rate
      or commodity price hedging arrangement.

     

    "HIP
      Co-Investor"
      means a
      shareholder of Holdings that is a limited partner, or an Affiliate of a limited
      partner, in Heartland or in any other fund or investment vehicle established
      or
      managed by Heartland or an Affiliate of Heartland and shall in any event include
      those Persons constituting HIP Co-Investors under the Shareholder Agreement
      on
      the Recapitalization Date.

     

    "Holdings"
      means
      Metaldyne Corporation, formerly known as MascoTech, Inc., a Delaware
      corporation.

     

    "Holdings
      Preferred Dividends"
      means
      (a) dividend payments due in respect of the Holdings Preferred Stock
      pursuant to Article 4(c)(2) of Holdings' Certificate of Designation and
      (b) any cash dividend payments in respect of any Qualified Holdings
      Preferred Stock.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    21

     

    

    "Holdings
      Preferred Stock"
      means
      the Series A Preferred Stock issued by Holdings, having an aggregate
      liquidation value of $36,100,100 and the other terms specified in Holdings'
      Certificate of Incorporation.

     

    "Indebtedness"
      of any
      Person means, without duplication, (a) all obligations of such Person for
      borrowed money or with respect to advances of any kind, (b) all obligations
      of such Person evidenced by bonds, debentures, notes or similar instruments,
      (c) all obligations of such Person upon which interest charges are
      customarily paid, (d) all obligations of such Person under conditional sale
      or other title retention agreements relating to property acquired by such
      Person, (e) all obligations of such Person in respect of the deferred
      purchase price of property or services (excluding current accounts payable
      incurred in the ordinary course of business), (f) all Indebtedness of
      others secured by (or for which the holder of such Indebtedness has an existing
      right, contingent or otherwise, to be secured by) any Lien on property owned
      or
      acquired by such Person, whether or not the Indebtedness secured thereby has
      been assumed, (g) all Guarantees by such Person of Indebtedness of others,
      (h) all Capital Lease Obligations of such Person (other than lease
      obligations that are Capital Lease Obligations solely because of a Guarantee),
      (i) all obligations, contingent or otherwise, of such Person as an account
      party in respect of letters of credit and letters of guaranty and (j) all
      obligations, contingent or otherwise, of such Person in respect of bankers'
      acceptances. The Indebtedness of any Person shall include the Indebtedness
      of
      any other entity (including any partnership in which such Person is a general
      partner) to the extent such Person is liable therefor as a result of such
      Person's ownership interest in or other relationship with such entity, except
      to
      the extent the terms of such Indebtedness provide that such Person is not liable
      therefor. Notwithstanding anything to the contrary in this paragraph, the term
      "Indebtedness" shall not include (a) the Restricted Stock Obligation,
      (b) any obligation in respect of the Saturn Proceeds Distribution,
      (c) any obligations in respect of options or other Equity Interests held by
      the Pre-Merger Stockholders to the extent surviving the Recapitalization
      Transactions, (d) agreements providing for indemnification, purchase price
      adjustments or similar obligations incurred or assumed in connection with the
      acquisition or disposition of assets or capital stock and (e) trade
      payables and accrued expenses in each case arising in the ordinary course of
      business.

     

    "Indemnified
      Taxes"
      means
      Taxes other than Excluded Taxes.

     

    "Indemnity,
      Subrogation and Contribution Agreement"
      means
      the Indemnity, Subrogation and Contribution Agreement, substantially in the
      form
      of Exhibit E, among the Parent Borrower, the Subsidiary Loan Parties party
      thereto and the Collateral Agent.

     

    "Information
      Memorandum"
      means
      the Confidential Information Memorandum dated June, 2002, relating to the Parent
      Borrower and the Transactions.

     

    "Intercompany
      Transfer"
      means
      the dividend or other intercompany distribution by the Parent Borrower to
      Holdings, all of which was used by Holdings as payment, in part, of the Merger
      Consideration.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    22

     

    

    "Intercreditor
      Agreement"
      means
      an intercreditor agreement among Holdings, the Parent Borrower, the
      Administrative Agent (or other agent acting on behalf of the Lenders) and the
      trustee or agent on behalf of the holders of the applicable Permitted Senior
      Notes, which such agreement shall (i) provide that the Liens in respect of
      such Permitted Senior Notes are subordinated to the Liens under the Collateral
      Documents, (ii) limit the ability of such trustee or agent and the holders
      of the Permitted Senior Notes to take actions with respect to, or enforce,
      such
      Liens and (iii) have such other terms as are satisfactory to the
      Administrative Agent.

     

    "Interest
      Election Request"
      means a
      request by the Parent Borrower or a Foreign Subsidiary Borrower, as the case
      may
      be, to convert or continue a Revolving Borrowing or Term Borrowing in accordance
      with Section 2.07.

     

    "Interest
      Payment Date"
      means
      (a) with respect to any ABR Loan (other than a Swingline Loan), the last
      day of each March, June, September and December, (b) with respect to any
      Eurocurrency Loan, the last day of the Interest Period applicable to the
      Borrowing of which such Loan is a part and, in the case of a Eurocurrency
      Borrowing with an Interest Period of more than three months' duration, each
      day
      prior to the last day of such Interest Period that occurs at intervals of three
      months' duration after the first day of such Interest Period and (c) with
      respect to any Swingline Loan, the day that such Loan is required to be
      repaid.

     

    "Interest
      Period"
      means, with respect to any Eurocurrency Borrowing, the period commencing on
      the date of such Borrowing and ending on the numerically corresponding day
      in
      the calendar month that is one, two, three or six months thereafter (or
      nine or twelve months thereafter if, at the time of the relevant Borrowing,
      all
      Lenders participating therein agree to make an interest period of such duration
      available), as the Parent Borrower or a Foreign Subsidiary Borrower, as the
      case
      may be, may elect; provided,
      that
      (a) if any Interest Period would end on a day other than a Business Day,
      such Interest Period shall be extended to the next succeeding Business Day
      unless such next succeeding Business Day would fall in the next calendar month,
      in which case such Interest Period shall end on the next preceding Business
      Day
      and (b) any Interest Period that commences on the last Business Day of a
      calendar month (or on a day for which there is no numerically corresponding
      day
      in the last calendar month of such Interest Period) shall end on the last
      Business Day of the last calendar month of such Interest Period. For purposes
      hereof, the date of a Borrowing initially shall be the date on which such
      Borrowing is made and thereafter shall be the effective date of the most recent
      conversion or continuation of such Borrowing.

     

    "Investors"
      means
      Heartland, its Affiliates and the other entities identified by Heartland as
      "Investors" to the Administrative Agent prior to the Recapitalization
      Date.

     

    "IPO"
      means
      an underwritten public offering by Holdings of Equity Interests of Holdings
      pursuant to a registration statement filed with the Securities and Exchange
      Commission in accordance with the Securities Act of 1933.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    23

     

    

    "Issuing
      Bank"
      means
      Chase, in its capacity as the issuer of Letters of Credit hereunder, and its
      successors in such capacity as provided in Section 2.05(i). The Issuing
      Bank may, in its discretion, arrange for one or more Letters of Credit to be
      issued by Affiliates of the Issuing Bank, including with respect to Foreign
      Currency Letters of Credit, and in each such case the term "Issuing Bank" shall
      include any such Affiliate with respect to Letters of Credit issued by such
      Affiliate. In the event that there is more than one Issuing Bank at any time,
      references herein and in the other Loan Documents to the Issuing Bank shall
      be
      deemed to refer to the Issuing Bank in respect of the applicable Letter of
      Credit or to all Issuing Banks, as the context requires. Notwithstanding the
      foregoing, each institution listed in Schedule 1.01(a) shall be deemed to
      be an Issuing Bank with respect to the Existing Letters of Credit issued by
      it.

     

    "Judgment
      Currency"
      has the
      meaning set forth in Section 10.14.

     

    "Judgment
      Currency Conversion Date"
      has the
      meaning set forth in Section 10.14.

     

    "LC
      Disbursement"
      means a
      payment made by the Issuing Bank pursuant to a Letter of Credit.

     

    "LC
      Exposure"
      means,
      at any time, the sum of (a) the aggregate undrawn amount of all outstanding
      Letters of Credit at such time plus (b) the aggregate amount of all LC
      Disbursements that have not yet been reimbursed by or on behalf of the Parent
      Borrower or the Foreign Subsidiary Borrowers, as the case may be, at such time.
      The LC Exposure of any Revolving Lender at any time shall be its Applicable
      Percentage of the total LC Exposure at such time.

     

    "LC
      Reserve Account"
      has the
      meaning set forth in Section 9.02(a).

     

    "Lender
      Affiliate"
      means,
      (a) with respect to any Lender, (i) an Affiliate of such Lender or
      (ii) any entity (whether a corporation, partnership, trust or otherwise)
      that is engaged in making, purchasing, holding or otherwise investing in bank
      loans and similar extensions of credit in the ordinary course of its business
      and is administered or managed by a Lender or an Affiliate of such Lender and
      (b) with respect to any Lender that is a fund that invests in bank loans
      and similar extensions of credit, any other fund that invests in bank loans
      and
      similar extensions of credit and is managed by the same investment advisor
      as
      such Lender or by an Affiliate of such investment advisor.

     

    "Lenders"
      means
      the Persons listed on Schedule 2.01 and any other Person that shall have
      become a party hereto pursuant to an Assignment and Acceptance, other than
      any
      such Person that ceases to be a party hereto pursuant to an Assignment and
      Acceptance. Unless the context otherwise requires, the term "Lenders" includes
      the Swingline Lender.

     

    "Letter
      of Credit"
      means
      any letter of credit issued pursuant to this Agreement. Each Existing Letter
      of
      Credit shall be deemed to constitute a Letter of Credit issued hereunder on
      the
      Effective Date for all purposes of the Loan Documents.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    24

     

    

    "Leverage
      Ratio"
      means,
      on any date, the ratio of (a) Total Indebtedness as of such date to
      (b) Consolidated EBITDA for the period of four consecutive fiscal quarters
      of Holdings ended on such date (or, if such date is not the last day of a fiscal
      quarter, ended on the last day of the fiscal quarter of Holdings most recently
      ended prior to such date for which financial statements are
      available).

     

    "LIBO
      Rate"
      means,
      with respect to any Eurocurrency Borrowing (other than such Borrowings
      denominated in a Foreign Currency) for any Interest Period, the rate appearing
      on Page 3750 of the Dow Jones Market Service (or on any successor or substitute
      page of such Service, or any successor to or substitute for such Service,
      providing rate quotations comparable to those currently provided on such page
      of
      such Service, as determined by the Administrative Agent from time to time for
      purposes of providing quotations of interest rates applicable to dollar deposits
      in the London interbank market) at approximately 11:00 a.m., London time,
      two Business Days prior to the commencement of such Interest Period, as the
      rate
      for dollar deposits with a maturity comparable to such Interest Period. With
      respect to Eurocurrency Borrowings denominated in a Foreign Currency, the LIBO
      Rate for any Interest Period shall be determined by the Administrative Agent
      at
      approximately 11:00 a.m., London time, on the Quotation Day for such
      Interest Period by reference to the British Bankers' Association Interest
      Settlement Rates for deposits in the currency of such Borrowing (as reflected
      on
      the applicable Telerate screen) for a period equal to such Interest Period.
      In
      the event that such rate is not available at such time for any reason, then
      the
      "LIBO
      Rate"
      with
      respect to such Eurocurrency Borrowing for such Interest Period shall be the
      rate at which deposits in the applicable currency for the Dollar Equivalent
      of
      $5,000,000 and for a maturity comparable to such Interest Period are offered
      by
      the principal London office of the Administrative Agent in immediately available
      funds in the London interbank market at approximately 11:00 a.m., London
      time, two Business Days prior to the commencement of such Interest
      Period.

     

    "Lien"
      means,
      with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
      hypothecation, encumbrance, charge or security interest in, on or of such asset,
      (b) the interest of a vendor or a lessor under any conditional sale
      agreement, capital lease or title retention agreement (or any financing lease
      having substantially the same economic effect as any of the foregoing) relating
      to such asset and (c) in the case of securities, any purchase option, call
      or similar right of a third party with respect to such securities.

     

    "Loan
      Documents"
      means
      this Agreement and the Security Documents.

     

    "Loan
      Parties"
      means
      Holdings, the Parent Borrower, the Foreign Subsidiary Borrowers and the other
      Subsidiary Loan Parties.

     

    "Loans"
      means
      the loans made by the Lenders to the Parent Borrower and the Foreign Subsidiary
      Borrowers pursuant to this Agreement.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    25

     

    

    "Long-Term
      Indebtedness"
      means
      any Indebtedness that, in accordance with GAAP, constitutes (or, when incurred,
      constituted) a long-term liability, including the current portion of any
      Long-Term Indebtedness.

     

    "Margin
      Stock"
      shall
      have the meaning assigned to such term in Regulation U.

     

    "Masco"
      means
      Masco Corporation, a Delaware corporation, or any successor
      thereto.

     

    "Material
      Adverse Effect"
      means a
      material adverse effect on (a) the business, operations, properties,
      assets, financial condition, contingent or otherwise, or material agreements
      of
      Holdings, the Parent Borrower and the Subsidiaries (including the Receivables
      Subsidiary), taken as a whole (it being understood that any effect on the
      business, operations, properties, assets, financial condition, contingent or
      otherwise or material agreements of Holdings, the Parent Borrower and the
      Subsidiaries (including the Receivables Subsidiary) resulting from the Asset
      Dropdown will not constitute a material adverse effect for purposes of this
      clause (a)), (b) the ability of any Loan Party in any material respect
      to perform any of its obligations under any Loan Document or (c) the rights
      of or benefits available to the Lenders under any Loan Document.

     

    "Material
      Agreements"
      means
      (a) any agreements or instruments relating to Material Indebtedness and
      (b) the Heartland Management Agreement.

     

    "Material
      Indebtedness"
      means
      (a) Indebtedness in respect of the Existing Subordinated Notes, Convertible
      Debentures, the Permitted Subordinated Notes and the Permitted Senior Notes,
      (b) obligations in respect of the Permitted Receivables Financing and
      (c) any other Indebtedness (other than the Loans and Letters of Credit), or
      obligations in respect of one or more Hedging Agreements, of any one or more
      of
      Holdings, the Parent Borrower and its Subsidiaries evidencing an aggregate
      outstanding principal amount exceeding $15,000,000. For purposes of determining
      Material Indebtedness, the "principal amount" of the obligations of Holdings,
      the Parent Borrower or any Subsidiary in respect of any Hedging Agreement at
      any
      time shall be the maximum aggregate amount (giving effect to any netting
      agreements) that Holdings, the Parent Borrower or such Subsidiary would be
      required to pay if such Hedging Agreement were terminated at such
      time.

     

    "Merger"
      means
      the merger of Merger Subsidiary with and into Holdings, with respect to which
      Holdings was the surviving entity as contemplated by the Recapitalization
      Agreement.

     

    "Merger
      Consideration"
      means
      the cash payment to the Pre-Merger Stockholders in accordance with the
      Recapitalization Agreement in an amount not exceeding $609,200,000.

     

    "Merger
      Subsidiary"
      means
      Riverside Acquisition Corporation, a Delaware corporation, all the Equity
      Interests of which are owned by Heartland, its Affiliate and the other
      Investors.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    26

     

    

    "Moody's"
      means
      Moody's Investors Service, Inc.

     

    "Mortgage"
      means a
      mortgage, deed of trust, assignment of leases and rents, leasehold mortgage
      or
      other security document granting a Lien on any Mortgaged Property to secure
      the
      Obligations. Each Mortgage shall be substantially in the form of Exhibit F
      with such changes as are necessary under applicable local law.

     

    "Mortgaged
      Property"
      means,
      initially, each parcel of real property and the improvements thereto owned
      by a
      Loan Party as of the Effective Date, and includes each other parcel of real
      property and improvements thereto with respect to which a Mortgage is granted
      pursuant to Section 5.12 or 5.13 and any property subject to an operating lease
      which is terminated in accordance with Section 5.16. 

     

    "Multiemployer
      Plan"
      means a
      multiemployer plan as defined in Section 4001(a)(3) of ERISA.

     

    "Net
      Proceeds"
      means,
      with respect to any event (a) the cash proceeds received in respect of such
      event including (i) any cash received in respect of any noncash proceeds,
      but only as and when received, (ii) in the case of a casualty, insurance
      proceeds in excess of $1,000,000 (excluding proceeds arising from the Compac
      Event), and (iii) in the case of a condemnation or similar event,
      condemnation awards and similar payments, net of (b) the sum of
      (i) all reasonable fees and out-of-pocket expenses and premiums paid by
      Holdings, the Parent Borrower and the Subsidiaries in connection with such
      event, (ii) in the case of a sale, transfer or other disposition of an asset
      (including pursuant to a sale and leaseback transaction or a casualty or a
      condemnation or similar proceeding), the amount of all payments required to
      be
      made by Holdings, the Parent Borrower and the Subsidiaries as a result of such
      event to repay Indebtedness (other than Loans) secured by such asset or
      otherwise subject to mandatory prepayment as a result of such event, and
      (iii) the amount of all Taxes paid (or reasonably estimated to be payable)
      by Holdings, the Parent Borrower and the Subsidiaries, and the amount of any
      reserves established by Holdings, the Parent Borrower and the Subsidiaries
      to
      fund contingent liabilities reasonably estimated to be payable, in each case
      during the 24-month period immediately following such event and that are
      directly attributable to such event (as determined reasonably and in good faith
      by the chief financial officer of Holdings or the Parent Borrower) to the extent
      such liabilities are actually paid within such applicable time periods.
      Notwithstanding anything to the contrary set forth above, (i) the proceeds
      of
      any sale, transfer or other disposition of receivables (or any interest therein)
      pursuant to any Permitted Receivables Financing shall not be deemed to
      constitute Net Proceeds and (ii) the proceeds of any sale, transfer or other
      disposition of receivables (or any interest therein) pursuant to any Foreign
      Factoring Arrangement shall constitute Net Proceeds only to the extent such
      proceeds can be repatriated to the United States without adverse tax
      consequences to the Parent Borrower or any Subsidiary.

     

    "Net
      Working Capital"
      means,
      at any date, (a) the consolidated current assets of Holdings, the Parent
      Borrower and its consolidated Subsidiaries (including the Receivables
      Subsidiary) as of such date (excluding cash and Permitted Investments) minus
      (b) the consolidated current liabilities of Holdings, the Parent Borrower
      and its 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    27

     

    

    consolidated
      Subsidiaries (including the Receivables Subsidiary) as of such date (excluding
      current liabilities in respect of Indebtedness). Net Working Capital at any
      date
      may be a positive or negative number. Net Working Capital increases when it
      becomes more positive or less negative and decreases when it becomes less
      positive or more negative.

     

    "New
      Castle Acquisition"
      means
      the acquisition by the Parent Borrower or a Subsidiary of all the remaining
      Equity Interests of NC-M Chassis Systems, LLC not then owned by the Parent
      Borrower or a Subsidiary or all, or substantially all, of the assets of NC-M
      Chassis Systems, LLC so long as (a) the total consideration (excluding
      fees, expenses and assumed liabilities) for such remaining Equity Interests
      or
      assets shall not exceed $215,000,000, (b) such acquisition shall be
      financed with (i) the issuance of Equity Interests by Holdings of not less
      than $64,000,000, (ii) Permitted Senior Notes to the extent contemplated by
      the defined term "Permitted Senior Notes", (iii) New Castle Seller Debt,
      (iv) Revolving Loans, Permitted Receivables Financing or, subject to
      Section 6.06, the New Castle Sale and Leaseback, or any combination
      thereof, in an aggregate amount not to exceed $120,000,000, or (v) any
      combination of the foregoing, (c) such acquisition is consummated within
      180 days of the Amendment Date, (d) after giving effect to such
      acquisition (and any related incurrence of or repayment of Indebtedness),
      (i) the Senior Secured Leverage Ratio is less than 2.75 to 1.00 and
      (ii) the Leverage Ratio is less than 4.75 to 1.00, and (e) immediately
      after giving effect thereto, (i) no Default has occurred and is continuing
      or would result therefrom, (ii) all transactions related thereto are
      consummated in all material respects in accordance with applicable laws,
      (iii) all the Equity Interests (other than Assumed Preferred Stock) of each
      Subsidiary formed for the purpose of or resulting from such acquisition shall
      be
      owned directly by the Parent Borrower or a Subsidiary and all actions required
      to be taken under Sections 5.12 and 5.13 have been taken,
      (iv) Holdings, the Parent Borrower and its Subsidiaries are in compliance,
      on a pro forma basis after giving effect to such acquisition, with the covenants
      contained in Sections 6.13 and 6.14 recomputed as at the last day of the
      most recently ended fiscal quarter of Holdings for which financial statements
      are available, as if such acquisition (and any related incurrence or repayment
      of Indebtedness) had occurred on the first day of each relevant period for
      testing such compliance, (v) any Indebtedness or any preferred stock that
      is incurred, acquired or assumed in connection with such acquisition shall
      be in
      compliance with Section 6.01 and (vi) the Parent Borrower has
      delivered to the Administrative Agent an officers' certificate to the effect
      set
      forth in clauses (a), (b), (c) and (d) (i) through
      (v) above, together with all relevant financial information for the Person
      or assets to be acquired.

     

    "New
      Castle Sale and Leaseback"
      shall
      mean any sale or transfer not later than 30 days of the New Castle Acquisition
      by the Parent Borrower or any Subsidiary of fixed or capital assets acquired
      pursuant to the New Castle Acquisition that is made for cash consideration
      in an
      aggregate amount not less than an amount equal to 85% of the orderly liquidation
      value of such fixed or capital assets not to exceed $120,000,000 in the
      aggregate during the term of this Agreement, and promptly thereafter rented
      or
      leased by the Parent Borrower or such Subsidiary; provided that, notwithstanding
      the foregoing, in connection with any New Castle Sale and Leaseback, Parent
      Borrower or any Subsidiary may elect to (1) retain ownership of any portion
      of
      the fixed or capital assets that could 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    28

     

    

    otherwise
      have been made the subject of the New Castle Sale and Leaseback and (2) pledge
      such retained assets as collateral security for any obligations in favor of
      the
      lessor(s) under any of the sale and leasing arrangements with respect to the
      assets that were not so retained (with such security interests of the lessor(s)
      being limited to the retained assets and the proceeds thereof), so long as
      (A)
      the cash proceeds received by the Parent Borrower and any Subsidiary from any
      such transaction exceeds 85% of the orderly liquidation value of all fixed
      and
      capital assets that have been made the subject of a sale and leaseback and
      the
      collateral security arrangements and (B) in the good faith judgment of the
      Parent Borrower, the financial terms of any such transaction are no less
      favorable to the Parent Borrower and any Subsidiary, taken as a whole, than
      would have been the case had the election set forth in this proviso not been
      utilized.

     

    "New
      Castle Seller Debt"
      means
      subordinated notes issued by Holdings to the seller in the New Castle
      Acquisition in an aggregate principal amount not less than $31,000,000, which
      such notes shall rank pari
      passu
      and
      shall be subject to the subordination and other terms that are no more favorable
      to the holders or obligees thereof in any material respect than the
      subordination and other terms of the Subordinated Debt.

     

    "New
      Castle Specified EBITDA"
      means,
      if the New Castle Acquisition has been consummated, the total of the amounts
      for
      any period prior to consummation of the New Castle Acquisition identified below
      that is included within the period for which Consolidated EBITDA is being
      calculated: (i) for the fiscal quarters ended December 31, 2002 and December
      31,
      2003, $11,046,443, (ii) for the fiscal quarters ended March 31, 2003 and March
      31, 2004, $10,693,298, (iii) for the fiscal quarter ended June 30, 2003,
      $12,030,358 and (iv) for the fiscal quarter ending September 30, 2003,
      $13,729,901; provided,
      however,
      that
      (A) to the extent the New Castle Acquisition has occurred during a particular
      quarter, the amount to be included for such quarter shall be determined by
      taking a proportionate amount of the quarter (based on actual days elapsed);
      and
      (B) following the completion of the New Castle Sale and Leaseback, New Castle
      Specified EBITDA for any fiscal period calculated thereafter shall be reduced
      by
      the total pro forma lease expense for such fiscal period as if such expense
      had
      occurred on the first day of the relevant period for determining New Castle
      Specified EBITDA (it being understood that no earlier calculation of
      Consolidated EBITDA shall be affected thereby).

     

    "North
      American Forging Sale"
      means
      the sale by the Parent Borrower and certain of its subsidiaries of certain
      assets comprising the Parent Borrower's North American forging business,
      pursuant to the North American Forging Sale Agreement.

     

    "North
      American Forging Sale Agreement"
      means
      the Asset Purchase Agreement dated as of January 7, 2006, among Holdings, the
      Parent Borrower, Metaldyne Precision Forming—Fort Wayne Inc. and Forming
      Technologies, Inc., as the same may be revised prior to the closing of the
      North
      American Forging Sale in a manner not adverse to the Lenders. 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    29

     

    

    "Obligations"
      has the
      meaning assigned to such term in the Security Agreement.

     

    "Other
      Taxes"
      means
      any and all present or future recording, stamp, documentary, excise, transfer,
      sales, property or similar taxes, charges or levies imposed by any Governmental
      Authority arising from any payment made under any Loan Document or from the
      execution, delivery or enforcement of, or otherwise with respect to, any Loan
      Document, other than Excluded Taxes.

     

    "Parent
      Borrower"
      means
      Metaldyne Company LLC, formerly known as Metalync Company LLC, a Delaware
      limited liability company.

     

    "PBGC"
      means
      the Pension Benefit Guaranty Corporation referred to and defined in ERISA and
      any successor entity performing similar functions.

     

    "Perfection
      Certificate"
      means a
      certificate in the form of Annex I to the Security Agreement or any other
      form approved by the Collateral Agent.

     

    "Permitted
      Acquisition"
      means
      (a) the New Castle Acquisition and (b) any acquisition, whether by
      purchase, merger, consolidation or otherwise, by the Parent Borrower or a
      Subsidiary of all or substantially all the assets of, or all the Equity
      Interests in, a Person or a division, line of business or other business unit
      of
      a Person so long as (i) such acquisition shall not have been preceded by a
      tender offer that has not been approved or otherwise recommended by the board
      of
      directors of such Person, (ii) such assets are to be used in, or such
      Person so acquired is engaged in, as the case may be, a business of the type
      conducted by the Parent Borrower and its Subsidiaries on the date of execution
      of this Agreement or in a business reasonably related thereto, (iii) such
      acquisition shall be financed with proceeds from (A) Revolving Loans
      (subject to Section 6.01(a)(i)), the Permitted Subordinated Notes to the
      extent the issuance thereof is permitted under the defined term "Permitted
      Subordinated Notes" and/or Qualified Holdings Preferred Stock issued and
      outstanding pursuant to clause (b) of the definition of Qualified Holdings
      Preferred Stock, (B) Permitted Receivables Financing (subject to
      Section 6.01(a)(ii)), (C) any lease financing permitted hereunder the
      proceeds of which are not required to prepay Term Borrowings here-under,
      (D) the issuance of Equity Interests by Holdings, (E) Excess Cash Flow
      not required to be used to prepay Term Loans pursuant to Section 2.11(f),
      (F) proceeds from sales of assets permitted by Section 6.05 that are
      not required to be applied toward the repayment of Term Borrowings hereunder
      or
      (G) any combination thereof and (iv) immediately after giving effect
      thereto, (A) no Default has occurred and is continuing or would result
      there-from, (B) all transactions related thereto are consummated in all
      material respects in accordance with applicable laws, (C) all the Equity
      Interests (other than Assumed Preferred Stock) of each Subsidiary formed for
      the
      purpose of or resulting from such acquisition shall be owned directly by the
      Parent Borrower or a Subsidiary and all actions required to be taken under
      Sections 5.12 and 5.13 have been taken, (D) Holdings, the Parent
      Borrower and its Subsidiaries are in compliance, on a pro forma basis after
      giving effect to such acquisition, with the covenants contained in
      Sections 6.13 and 6.14 recomputed as at the last day of the most recently
      ended fiscal quarter of Holdings for which financial 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    30

     

    

    statements
      are available, as if such acquisition (and any related incurrence or repayment
      of Indebtedness) had occurred on the first day of each relevant period for
      testing such compliance (provided
      that any
      acquisition that occurs prior to the first testing period under such Sections
      shall be deemed to have occurred during such first testing period), (E) any
      Indebtedness or any preferred stock that is incurred, acquired or assumed in
      connection with such acquisition shall be in compliance with Section 6.01
      and (F) the Parent Borrower has delivered to the Administrative Agent an
      officers' certificate to the effect set forth in clauses (i), (ii),
      (iii) and (iv) (A) through (F) above, together with all
      relevant financial information for the Person or assets to be
      acquired.

     

    "Permitted
      Capital Expenditure Amount"
      means
      the sum of (i) the Base Amount for such fiscal year as specified below,
      (ii) 20% of Acquired Assets (the "Acquired
      Assets Amount")
      and
      (iii) for each fiscal year after any Acquired Assets Amount are initially
      included in clause (ii) above, 5% of such Acquired Assets Amount,
      calculated on a cumulative basis.

     

    

    
      	
              Fiscal
                Year Ended

               

            	
              Base
                Amount

               

            
	
              2001

               

            	
              $120,000,000

               

            
	
              2002

               

            	
              $115,000,000

               

            
	
              2003

               

            	
              $100,000,000

               

            
	
              2004

               

            	
              $110,000,000

               

            
	
              2005

               

            	
              $115,000,000

               

            
	
              2006

               

            	
              $80,000,000

               

            
	
              2007

               

            	
              $90,000,000

               

            
	
              2008

               

              2009

               

            	
              $95,000,000

               

              $95,000,000

               

            

    

    

    "Permitted
      Encumbrances"
      means:

     

    (a) Liens
      imposed by law for taxes that are not yet due or are being contested in
      compliance with Section 5.05;

     

    (b) carriers',
      warehousemen's, mechanics', materialmen's, repairmen's and other like Liens
      imposed by law, arising in the ordinary course of business and securing
      obligations that are not overdue by more than 30 days or are being
      contested in compliance with Section 5.05;

     

    (c) pledges
      and deposits made in the ordinary course of business in compliance with workers'
      compensation, unemployment insurance and other social security laws or
      regulations;

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    31

     

    

    (d) deposits
      to secure the performance of bids, trade contracts, leases, statutory
      obligations, surety and appeal bonds, performance bonds and other obligations
      of
      a like nature, in each case in the ordinary course of business;

     

    (e)
      judgment Liens in respect of judgments that do not constitute an Event of
      Default under clause (k) of Article VII;

     

    (f) easements,
      zoning restrictions, rights-of-way and similar encumbrances on real property
      imposed by law or arising in the ordinary course of business that do not secure
      any monetary obligations and do not materially detract from the value of the
      affected property or interfere with the ordinary conduct of business of the
      Parent Borrower or any Subsidiary;

     

    (g) ground
      leases in respect of real property on which facilities owned or leased by the
      Parent Borrower or any of the Subsidiaries are located, other than any Mortgaged
      Property;

     

    (h) Liens
      in favor or customs and revenue authorities arising as a matter of law to secure
      payment of customs duties in connection with the importation of goods in the
      ordinary course of business;

     

    (i)
      Leases or subleases granted to other Persons and not interfering in any material
      respect with the business of Holdings, the Parent Borrower and the Subsidiaries,
      taken as a whole;

     

    (j)
      banker's liens, rights of set-off or similar rights, in each case arising by
      operation of law; and

     

    (k)
      Liens
      in favor of a landlord on leasehold improvements in leased
      premises;

     

    provided
      that the
      term "Permitted Encumbrances" shall not include any Lien securing
      Indebtedness.

     

    "Permitted
      Investments"
      means:

     

    (a) direct
      obligations of, or obligations the principal of and interest on which are
      unconditionally guaranteed by, the United States of America (or by any
      agency thereof to the extent such obligations are backed by the full faith
      and
      credit of the United States of America), in each case maturing within one
      year from the date of acquisition thereof;

     

    (b) investments
      in commercial paper maturing within one year from the date of acquisition
      thereof and having, at such date of acquisition, the highest credit rating
      obtainable from S&P or from Moody's;

     

    (c) investments
      in certificates of deposit, banker's acceptances and time deposits maturing
      within one year from the date of acquisition thereof issued or 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    32

     

    

    guaranteed
      by or placed with, and money market deposit accounts issued or offered by,
      any
      domestic office of any commercial bank organized under the laws of the
      United States of America or any State thereof which has a combined capital
      and surplus and undivided profits of not less than $500,000,000;

     

    (d) fully
      collateralized repurchase agreements with a term of not more than 30 days
      for securities described in clause (a) above and entered into with a
      financial institution satisfying the criteria described in clause (c)
      above;

     

    (e)
      securities issued by any state of the United States of America or any
      political subdivision of any such state or any public instrumentality thereof
      having maturities of not more than six months from the date of acquisition
      thereof and, at the time of acquisition, having the highest credit rating
      obtainable from S&P or from Moody's;

     

    (f) securities
      issued by any foreign government or any political subdivision of any foreign
      government or any public instrumentality thereof having maturities of not more
      than six months from the date of acquisition thereof and, at the time of
      acquisition, having the highest credit rating obtainable from S&P or from
      Moody's;

     

    (g) investments
      of the quality as those identified on Schedule 6.04 to the Original Credit
      Agreement as "Qualified Foreign Investments" made in the ordinary course of
      business;

     

    (h) cash;
      and

     

    (i) investments
      in funds that invest solely in one or more types of securities described in
      clauses (a), (e) and (f) above.

     

    "Permitted
      Receivables Documents"
      means
      the Receivable Purchase Agreement, the Receivables Transfer Agreement and all
      other documents and agreements relating to the Permitted Receivables
      Financing.

     

    "Permitted
      Receivables Financing"
      means
      the sale by the Parent Borrower and certain Subsidiaries (other than Foreign
      Subsidiaries) of accounts receivables (i)(a) to the Receivables Subsidiary
      pursuant to the Receivables Sale Agreement and (b) the sale of such
      accounts receivable (or participation therein) by the Receivables Subsidiary
      to
      certain purchasers pursuant to the Receivables Transfer Agreement and
      (ii) directly (or indirectly through a special purpose subsidiary) to
      third-parties pursuant to third-party financing agreements in transactions
      constituting "true sales", provided
      that the
      aggregate net investment of the purchasers under the Receivables Transfer
      Agreement and such third-party financing agreements in such accounts receivable
      so sold by the Parent Borrower and such Subsidiaries shall not exceed in the
      aggregate $175,000,000 and, provided further
      that any
      such receivables financing described in clause (ii) above shall be satisfactory
      to the Administrative Agent and the administrative agent under the Receivables
      Transfer Agreement.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    33

     

    

    "Permitted
      Senior Notes"
      means
      any Indebtedness of Holdings or the Parent Borrower, provided
      that
      (a) to the extent such Indebtedness and any related Guarantees are secured
      by any Lien, such Liens are second-priority Liens and the trustee or agent
      thereunder shall have entered into the Intercreditor Agreement, (b) the
      proceeds resulting from the initial $150,000,000 aggregate principal amount
      of
      such Indebtedness shall be used (i) to prepay Term Borrowings pursuant to
      Section 2.11(a), (ii) to repurchase, redeem or otherwise retire the
      Convertible Debentures, (iii) if such Indebtedness is incurred
      contemporaneously with the New Castle Acquisition in order to effect the New
      Castle Acquisition or (iv) any combination of the foregoing, (c) any
      proceeds resulting from the aggregate principal amount of such Indebtedness
      that
      exceeds $150,000,000 shall be used to prepay Term Borrowings pursuant to
      Section 2.11(d)(1), (d) such Indebtedness shall not have any principal
      payments due prior to the date that is 12 months after the Tranche D
      Maturity Date, whether at maturity or other-wise, except upon the occurrence
      of
      a change of control or similar event (including asset sales), in each case
      so
      long as the provisions relating to change of control or similar events
      (including asset sales) included in the governing instrument of such
      Indebtedness provide that the provisions of this Agreement must be satisfied
      prior to the satisfaction of such provisions of such Indebtedness and
      (d) such Indebtedness bears interest at a fixed rate, which rate shall be,
      in the good faith judgment of the Parent Borrower's board of directors,
      consistent with the market at the time of issuance for similar Indebtedness
      for
      comparable issuers or borrowers. The Parent Borrower may designate by notice
      to
      the Administrative Agent any Permitted Subordinated Notes as Permitted Senior
      Notes so long as such notice is delivered immediately prior to the issuance
      of
      such Notes, and following such designation such Permitted Subordinated Notes
      shall be "Permitted Senior Notes" for purposes of this Agreement.

     

    "Permitted
      Subordinated Notes"
      means
      Indebtedness of Holdings or the Parent Borrower, provided
      that
      (a) such Indebtedness and any related Guarantees shall not be secured by
      any Lien, (b) such Indebtedness shall be subject to subordination and
      inter-creditor provisions that are no more favorable to the holders or obligees
      thereof than the subordination or inter-creditor provisions of the Existing
      Subordinated Notes in any material respect, (c) the proceeds from such
      Indebtedness shall be used (i) to repurchase, redeem, repay or otherwise retire
      the Convertible Debentures, (ii) to repay (subject to
      Section 6.01(a)(vii)) Revolving Borrowings or obligations arising in
      respect of the Permitted Receivables Financing, (iii) to prepay Term
      Borrowings pursuant to Section 2.11(a) or (iv) if after giving effect
      to the incurrence of such Indebtedness, the Senior Leverage Ratio is less than
      2.75 to 1.00, to effect Permitted Acquisitions (provided
      that the
      aggregate principal amount of Permitted Subordinated Notes that can be used
      for
      financing Permitted Acquisitions pursuant to this clause (iv) shall not
      exceed $100,000,000, (d) such Indebtedness shall not have any principal
      payments due prior to the date that is 12 months after the Tranche D
      Maturity Date, whether at maturity or otherwise, except upon the occurrence
      of a
      change of control or similar event (including asset sales), in each case so
      long
      as the provisions relating to change of control or similar events (including
      asset sales) included in the governing instrument of such Indebtedness provide
      that the provisions of this Agreement must be satisfied prior to the
      satisfaction of such provisions of such Indebtedness and (e) such
      Indebtedness bears interest at a fixed rate, which rate shall be, in the good
      faith judgment of the Parent Borrower's board of 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    34

     

    

    directors,
      consistent with the market at the time of issuance for similar Indebtedness
      for
      comparable issuers or borrowers. Notwithstanding the foregoing, for purposes
      of
      this Agreement, the Existing Subordinated Notes and the New Castle Seller Debt
      shall be Permitted Subordinated Indebtedness.

     

    "Person"
      means
      any natural person, corporation, limited liability company, trust, joint
      venture, association, company, partnership, Governmental Authority or other
      entity.

     

    "Plan"
      means
      any employee pension benefit plan (other than a Multiemployer Plan) subject
      to
      the provisions of Title IV of ERISA or Section 412 of the Code or
      Section 302 of ERISA, and in respect of which the Parent Borrower or any
      ERISA Affiliate is (or, if such plan were terminated, would under
      Section 4069 of ERISA be deemed to be) an "employer" as defined in
      Section 3(5) of ERISA.

     

    "Pledge
      Agreement"
      means
      the Pledge Agreement, substantially in the form of Exhibit G, among
      Holdings, the Parent Borrower, the Subsidiary Loan Parties party thereto and
      the
      Collateral Agent for the benefit of the Secured Parties.

     

    "Pre-Merger
      Stockholders"
      means
      the common stockholders of Holdings and holders of options to acquire common
      stock of Holdings immediately prior to the Merger.

     

    "Prepayment
      Event"
      means:

     

    (a) any
      sale,
      transfer or other disposition (including pursuant to a sale and leaseback
      transaction) of any property or asset of Holdings, the Parent Borrower or any
      Subsidiary for consideration that exceeds $10,000,000, other than dispositions
      described in clauses (a), (b), (c), (d), (e), (f)(ii), (f)(iii), (g), (h),
      (i), (k), (l) and (m) of Section 6.05; or

     

    (b) any
      casualty or other insured damage to, or any taking under power of eminent domain
      or by condemnation or similar proceeding of, any property or asset of Holdings,
      the Parent Borrower or any Subsidiary having a book value or fair market value
      in excess of $1,000,000 (other than damage arising from the Compac Event),
      but
      only to the extent that the Net Proceeds therefrom have not been applied to
      repair, restore or replace such property or asset within 365 days after
      such event; or

     

    (c) the
      incurrence by Holdings, the Parent Borrower or any Subsidiary of any
      Indebtedness, other than Indebtedness permitted by Section 6.01(a);
      or

     

    (d) the
      incurrence of any Permitted Senior Notes (unless the Net Proceeds thereof are
      used as permitted by clause (b) under the defined term "Permitted Senior
      Notes");

     

    notwithstanding
      anything to the contrary, the sale, transfer or other disposition of the Saturn
      Subsidiary or the Saturn Sale shall not constitute a Prepayment
      Event.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    35

     

    

    "Prime
      Rate"
      means
      the rate of interest per annum publicly announced from time to time by Chase
      as
      its prime rate in effect at its principal office in New York City; each
      change in the Prime Rate shall be effective from and including the date such
      change is publicly announced as being effective.

     

    "Qualified
      Holdings Preferred Stock"
      means
      any preferred capital stock or preferred equity interest of Holdings
      (a)(i) that does not provide for any cash dividend payments or other cash
      distributions in respect thereof prior to the Tranche D Term Loan Maturity
      Date and (ii) that by its terms (or by the terms of any security into which
      it is convertible or for which it is exchangeable or exercisable) or upon the
      happening of any event does not (A)(x) mature or become mandatorily
      redeemable pursuant to a sinking fund obligation or otherwise; (y) become
      convertible or exchangeable at the option of the holder thereof for Indebtedness
      or preferred stock that is not Qualified Holdings Preferred Stock; or
      (z) become redeemable at the option of the holder thereof (other than as a
      result of a change of control event), in whole or in part, in each case on
      or
      prior to the first anniversary of the Tranche D Term Loan Maturity Date and
      (B) provide holders thereunder with any rights upon the occurrence of a
      "change of control" event prior to the repayment of the Obligations under the
      Loan Documents or (b) with respect to which Holdings has delivered a notice
      to the Administrative Agent that it has issued preferred stock or preferred
      equity interest in lieu of incurring Indebtedness otherwise permitted by
      clauses (vii) or (xv) under Section 6.01(a) and, in the case of
      clause (vii), whether such preferred stock or preferred equity interests
      relate to any Permitted Subordinated Notes or any Permitted Senior Notes, with
      such notice specifying the applicable clause; provided
      that
      (i) the aggregate liquidation value of all such preferred stock or
      preferred equity interest issued pursuant to this clause (b) shall not
      exceed at any time the dollar limitation specified in such applicable clause,
      less the aggregate principal amount of Indebtedness outstanding pursuant to
      such
      paragraph and (ii) the terms of such preferred stock or preferred equity
      interests (x) shall provide that upon a default thereof, the remedies of
      the holders thereof shall be limited to the right to additional representation
      on the board of directors of Holdings and (y) shall otherwise be no less
      favorable to the Lenders, in the aggregate, than the terms of any Indebtedness
      that may be incurred pursuant to such paragraph.

     

    "Quotation
      Day"
      means,
      with respect to any Eurocurrency Borrowing denominated in a Foreign Currency
      and
      any Interest Period, the day on which it is market practice in the relevant
      interbank market for prime banks to give quotations for deposits in the currency
      of such Borrowing for delivery on the first day of such Interest Period. If
      such
      quotations would normally be given by prime banks on more than one day, the
      Quotation Day will be the last of such days.

     

    "Ramos
      Sale and Leaseback"
      shall
      mean any sale or transfer by the Parent Borrower or any Subsidiary of fixed
      or
      capital assets of the Ramos facility that is made for cash consideration in
      the
      aggregate amount not less than an amount equal to 85% of the orderly liquidation
      value of such fixed or capital assets not to exceed $30,000,000 in the aggregate
      during the term of this Agreement, and promptly thereafter rented or leased
      by
      the Parent Borrower or such Subsidiary.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    36

     

    

    "Recapitalization"
      means
      the recapitalization of Holdings effected pursuant to the Merger as contemplated
      by the Recapitalization Agreement.

     

    "Recapitalization
      Agreement"
      means
      the Recapitalization Agreement dated as of August 1, 2000, between Holdings
      and Merger Subsidiary, as amended.

     

    "Recapitalization
      Date"
      means
      November 28, 2000.

     

    "Recapitalization
      Documents"
      means
      the Recapitalization Agreement and the other agreements and documents relating
      to the Recapitalization Transactions.

     

    "Recapitalization
      Transactions"
      means
      (a) the Recapitalization, (b) the Specified Asset Sales, (c) the
      Saturn Sale, (d) the Asset Dropdown, (e) the Restricted Stock Award
      and the performance of the Restricted Stock Obligation, (f) the
      Intercompany Transfer, (g) the payment of the Merger Consideration and the
      Saturn Proceeds Distribution, (h) the issuance of the Holdings Preferred
      Stock to Masco, (i) the repayment of certain Indebtedness, (j) the
      Equity Rollover, (k) the execution of the Subordinated Loan Agreement dated
      as of the Recapitalization Date between Masco and Holdings, as amended, by
      the
      parties thereto and (l) the other transactions contemplated by the
      Recapitalization Agreement.

     

    "Receivables
      Purchase Agreement"
      means
      (a) the Receivables Purchase Agreement dated as of the Recapitalization
      Date among the Receivables Subsidiary, Holdings, the Parent Borrower and the
      Subsidiaries party thereto, related to the Permitted Receivables Financing,
      as
      may be amended, supplemented or otherwise modified to the extent permitted
      by
      Section 6.11 and (b) any agreement replacing such Receivables Purchase
      Agreement, provided
      that
      such replacing agreement contains terms that are substantially similar to such
      Receivables Purchase Agreement and that are otherwise no more adverse to the
      Lenders than the applicable terms of such Receivables Purchase
      Agreement.

     

    "Receivables
      Subsidiary"
      means
      MTSPC, Inc., a Delaware corporation, MRFC, Inc., a Delaware corporation, or
      any
      special purpose subsidiary referred to in clause (ii) of the definition
      Permitted Receivables Financing.

     

    "Receivables
      Transfer Agreement"
      means
      (a) the Receivables Transfer Agreement dated as of the Recapitalization
      Date, among the Receivables Subsidiary, Holdings and the purchasers party
      thereto, relating to the Permitted Receivables Financing, as may be amended,
      supplemented or otherwise modified to the extent permitted by Section 6.11
      and (b) any agreement replacing such Receivables Transfer Agreement,
provided
      that
      such replacing agreement contains terms that are substantially similar to such
      Receivables Transfer Agreement and that are otherwise no more adverse to the
      Lenders than the applicable terms of such Receivables Transfer
      Agreement.

     

    "Register"
      has the
      meaning set forth in Section 10.04.

     

    "Regulation
      U"
      shall
      mean Regulation U of the Board as from time to time in effect and all
      official rulings and interpretations thereunder or thereof.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    37

     

    

    "Regulation
      X"
      shall
      mean Regulation X of the Board as from time to time in effect and all official
      rulings and interpretations thereunder or thereof.

     

    "Related
      Parties"
      means,
      with respect to any specified Person, such Person's Affiliates and the
      respective directors, officers, employees, agents and advisors of such Person
      and such Person's Affiliates.

     

    "Release"
      means
      any release, spill, emission, leaking, dumping, injection, pouring, deposit,
      disposal, discharge, dispersal, leaching or migration into or through the
      environment (including ambient air, surface water, groundwater, land surface
      or
      subsurface strata) or within any building, structure, facility or
      fixture.

     

    "Required
      Lenders"
      means,
      at any time, Lenders having Revolving Exposures, Term Loans and unused
      Commitments representing more than 50% of the sum of the total Revolving
      Exposures, outstanding Term Loans and unused Commitments at such
      time.

     

    "Restatement
      Effective Date"
      shall
      have the meaning specified in the Amendment and Restatement
      Agreement.

     

    "Restricted
      Indebtedness"
      means
      Indebtedness of Holdings, the Parent Borrower or any Subsidiary, the payment,
      prepayment, redemption, repurchase or defeasance of which is restricted under
      Section 6.08(b).

     

    "Restricted
      Payment"
      means
      any dividend or other distribution (whether in cash, securities or other
      property) with respect to any Equity Interests in Holdings, the Parent Borrower
      or any Subsidiary (including the Receivables Subsidiary), or any payment
      (whether in cash, securities or other property), including any sinking fund
      or
      similar deposit, on account of the purchase, redemption, retirement,
      acquisition, cancelation or termination of any Equity Interests in Holdings,
      the
      Parent Borrower or any Subsidiary (including the Receivables Subsidiary) or
      any
      option, warrant or other right to acquire any such Equity Interests in Holdings,
      the Parent Borrower or any Subsidiary (including the Receivables
      Subsidiary).

     

    "Restricted
      Stock Award"
      means
      the grant of restricted stock awards (including phantom restricted stock awards)
      of Holdings in connection with the Recapitalization, having the terms set forth
      in the Recapitalization Agreement, in substitution of restricted stock awards
      (including phantom restricted stock awards) of Holdings existing immediately
      prior to the Recapitalization Date.

     

    "Restricted
      Stock Obligation"
      means
      the obligation following the Recapitalization Date of Holdings to make deferred
      cash payments in an aggregate amount not to exceed $47,500,000 over a
      38 month period, plus (i) any accretion thereto and (ii) any
      deferred payments required to be made in connection with the Saturn Sale, in
      each case in accordance with the Recapitalization Agreement following the
      Recapitalization Date, pursuant to the terms of the new restricted stock granted
      pursuant to the Restricted Stock Award.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    38

     

    

    "Revolving
      Availability Period"
      means
      the period from and including the Effective Date to but excluding the earlier
      of
      the Revolving Maturity Date and the date of termination of the Revolving
      Commitments.

     

    "Revolving
      Commitment"
      means,
      with respect to each Lender, the commitment, if any, of such Lender to make
      Revolving Loans, including Foreign Currency Loans, and to acquire participations
      in Letters of Credit, including Foreign Currency Letters of Credit and Swingline
      Loans hereunder, expressed as an amount representing the maximum aggregate
      amount of such Lender's Revolving Exposure, including Foreign Currency Exposure,
      hereunder, as such commitment may be (a) reduced from time to time pursuant
      to Section 2.08 and (b) reduced or increased from time to time pursuant to
      assignments by or to such Lender pursuant to Section 10.04. The initial amount
      of each Lender's Revolving Commitment is set forth on Schedule 2.01, or in
      the
      Assignment and Acceptance pursuant to which such Lender shall have assumed
      its
      Revolving Commitment, as applicable. The initial aggregate amount of the
      Lenders' Revolving Commitments is $200,000,000.

     

    "Revolving
      Exposure"
      means,
      with respect to any Lender at any time, the sum of the outstanding principal
      amount of such Lender's Revolving Loans and its LC Exposure and Swingline
      Exposure at such time.

     

    "Revolving
      Lender"
      means a
      Lender with a Revolving Commitment or, if the Revolving Commitments have
      terminated or expired, a Lender with Revolving Exposure.

     

    "Revolving
      Loan"
      means a
      Loan made pursuant to clause (iii) of Section 2.01(a).

     

    "Revolving
      Maturity Date"
      means
      May 28, 2007, or, if such day is not a Business Day, the first Business Day
      thereafter.

     

    "S&P"
      means
      Standard & Poor's.

     

    "Saturn"
      means
      Saturn Electronics and Engineering Inc. or any successor thereto by merger
      or
      otherwise.

     

    "Saturn
      Proceeds Distribution"
      means
      the cash payments to be made as a result of any Saturn Sale in an amount based
      upon the net proceeds resulting from the Saturn Sale and determined in
      accordance with and pursuant to the Recapitalization Agreement.

     

    "Saturn
      Sale"
      means
      one or more sales by the Saturn Subsidiary of any Equity Interests (or other
      property received in respect thereof) in Saturn.

     

    "Saturn
      Subsidiary"
      means a
      special purpose wholly owned subsidiary of Holdings which will hold any Equity
      Interests (or other property received in respect thereof) in Saturn pending
      the
      completion of the Saturn Sale and any other special purpose wholly owned
      subsidiary of Holdings that holds any proceeds from the Saturn 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    39

     

    

    Sale
      not
      required to be paid to Pre-Merger Stockholders or on account of taxes from
      any
      Saturn Sale.

     

    "Secured
      Parties"
      has the
      meaning assigned to such term in the Security Agreement.

     

    "Security
      Agreement"
      means
      the Security Agreement, substantially in the form of Exhibit H, among
      Holdings, the Parent Borrower, the Subsidiary Loan Parties party thereto and
      the
      Collateral Agent for the benefit of the Secured Parties.

     

    "Security
      Documents"
      means
      the Security Agreement, the Pledge Agreement, the Mortgages, the Guarantee
      Agreement, the Indemnity, Subrogation and Contribution Agreement, each Foreign
      Security Document entered into pursuant to Section 2.21 and
      Section 4.03 and each other security agreement or other instrument or
      document executed and delivered pursuant to Section 5.12 or 5.13 to secure
      any
      of the Obligations.

     

    "Senior
      Indebtedness"
      means
      (a) the sum of Total Indebtedness plus the obligations outstanding under the
      Permitted Receivables Financing minus (b) Subordinated Debt.

     

    "Senior
      Leverage Ratio"
      means,
      on any date, the ratio of (a) Senior Indebtedness as of such date to
      (b) Consolidated EBITDA for the period of four consecutive fiscal quarters
      of Holdings ended on such date (or, if such date is not the last day of a fiscal
      quarter, ended on the last day of the fiscal quarter of Holdings most recently
      ended prior to such date for which financial statements are
      available).

     

    "Senior
      Secured Leverage Ratio"
      means,
      on any date, the ratio of (a) Senior Indebtedness as of such date that is
      secured by any first-priority Lien to (b) Consolidated EBITDA for the
      period of four consecutive fiscal quarters of Holdings ended on such date (or,
      if such date is not the last day of a fiscal quarter, ended on the last day
      of
      the fiscal quarter of Holdings most recently ended prior to such date for which
      financial statements are available).

     

    "Shareholder
      Agreement"
      means
      the Shareholders Agreement dated as of the Recapitalization Date, among
      Holdings, Heartland and the other parties thereto, as amended from time to
      time.

     

    "Specified
      Acquired Property"
      means
      any property, real or personal, (a) that is acquired pursuant to a
      Permitted Acquisition or (b) that is owned by the Parent Borrower or any
      Subsidiary immediately prior to such Permitted Acquisition and that is combined
      with any such acquired property for purposes of any Acquisition Lease Financing,
      provided
      that the
      fair value of the property described in this clause (b) shall not exceed in
      the aggregate during the term of this Agreement, $25,000,000.

     

    "Specified
      Asset Sales"
      means
      the sale by Holdings of its equity investments in the Specified
      Assets.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    40

     

    

    "Specified
      Assets"
      means
      Advanced Accessories Systems LLC, Titan International Inc., Delco Remy
      International Inc., MSX International Inc., Innovative Coatings Technology,
      Inc., Qualitor, Inc. and Tower Automotive Inc.

     

    "Specified
      Cash"
      means
      the cash held by Holdings on the Recapitalization Date in an amount equal to
      $3,700,000.

     

    "Specified
      Obligations"
      means
      Obligations consisting of the principal and interest on Loans, reimbursement
      obligations in respect of LC Disbursements and fees.

     

    "Specified
      Prepayment Event"
      means
      any sale, transfer or other disposition constituting an Acquisition Lease
      Financing.

     

    "Statutory
      Reserve Rate"
      means a
      fraction (expressed as a decimal), the numerator of which is the number one
      and
      the denominator of which is the number one minus the aggregate of the maximum
      reserve percentages (including any marginal, special, emergency or supplemental
      reserves) expressed as a decimal established by the Board (or in the case of
      Foreign Currency Borrowings, the applicable Governmental Authority) to which
      the
      Administrative Agent is subject (a) with respect to the Base CD Rate, for
      new negotiable nonpersonal time deposits in dollars of over $100,000 with
      maturities approximately equal to three months and (b) with respect to the
      Adjusted LIBO Rate, for eurocurrency funding (currently referred to as
      "Eurocurrency Liabilities" in Regulation D of the Board). Such reserve
      percentages shall include those imposed pursuant to such Regulation D.
      Eurocurrency Loans shall be deemed to constitute eurocurrency funding and to
      be
      subject to such reserve requirements without benefit of or credit for proration,
      exemptions or offsets that may be available from time to time to any Lender
      under any applicable law, rule or regulation. The Statutory Reserve Rate shall
      be adjusted automatically on and as of the effective date of any change in
      any
      reserve percentage.

     

    "Sterling"
      or "£"
      means the lawful money of the United Kingdom.

     

    "Subordinated
      Debt"
      means,
      without duplication, (a) the Convertible Debentures, (b) the Existing
      Subordinated Notes and (c) any other subordinated Indebtedness of Holdings,
      the Parent Borrower or any Subsidiary (including the Permitted Subordinated
      Notes).

     

    "Subordinated
      Debt Documents"
      means
      (a) the Convertible Debentures Indenture, (b) the Existing
      Subordinated Notes Documents and (c) any indenture or other instruments
      under which any other Subordinated Debt is issued or incurred.

     

    "subsidiary"
      means,
      with respect to any Person (the "parent")
      at any
      date, any corporation, limited liability company, partnership, association
      or
      other entity the accounts of which would be consolidated with those of the
      parent in the parent's consolidated financial statements if such financial
      statements were prepared in accordance with GAAP as of such date, as well as
      any
      other corporation, limited liability company, partnership, association or other
      entity (a) of which securities or other ownership interests representing
      more than 50% of the ordinary voting power or, in the 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    41

     

    

    case
      of a
      partnership, more than 50% of the general partnership interests are, as of
      such
      date, owned, controlled or held, or (b) that is, as of such date, otherwise
      Controlled, by the parent or one or more subsidiaries of the parent or by the
      parent and one or more subsidiaries of the parent.

     

    "Subsidiary"
      means
      any subsidiary of the Parent Borrower or Holdings, as the context requires,
      including the Foreign Subsidiary Borrowers. Unless expressly otherwise provided,
      the term "Subsidiary" shall not include (a) the Receivables Subsidiary, (b)
      the
      Saturn Subsidiary, (c) for so long as Acme Office Group, Inc. ("Acme") is
      inactive, holds no assets and conducts no business, Acme and (d)
      TriMas.

     

    "Subsidiary
      Loan Party"
      means
      (a) any Subsidiary that is not a Foreign Subsidiary (other than the Foreign
      Subsidiary Borrowers) and (b) any Foreign Subsidiary Borrower and any other
      Foreign Subsidiary that executes a guarantee agreement pursuant to
      paragraph (c) of the Collateral and Guarantee Requirement.

     

    "Supplemental
      Indenture"
      means
      the supplement to the Convertible Debenture Indenture among the Parent Borrower,
      Holdings and Morgan Guaranty Trust Company of New York, as trustee,
      pursuant to which the Parent Borrower will become a co-obligor (together with
      Holdings) under Convertible Debenture Indenture.

     

    "Swingline
      Exposure"
      means,
      at any time, the aggregate principal amount of all Swingline Loans outstanding
      at such time. The Swingline Exposure of any Lender at any time shall be its
      Applicable Percentage of the total Swingline Exposure at such time.

     

    "Swingline
      Lender"
      means
      Chase, in its capacity as lender of Swingline Loans hereunder , and Comerica
      Bank, in its capacity as lender of Swingline Loans hereunder. References herein
      and in the other Loan Documents to the Swingline Lender shall be deemed to
      refer
      to the Swingline Lender in respect of the applicable Swingline Loan or to all
      Swingline Lenders, as the context requires.

     

    "Swingline
      Loan"
      means a
      Loan made pursuant to Section 2.04.

     

    "Synthetic
      Purchase Agreement"
      means
      any swap, derivative or other agreement or combination of agreements pursuant
      to
      which Holdings, the Parent Borrower or a Subsidiary is or may become obligated
      to make (i) any payment (other than in the form of Equity Interests of
      Holdings) in connection with a purchase by a third party from a Person other
      than Holdings, the Parent Borrower or a Subsidiary of any Equity Interest or
      Restricted Indebtedness or (ii) any payment (other than on account of a
      permitted purchase by it of any Equity Interest or any Restricted Indebtedness)
      the amount of which is determined by reference to the price or value at any
      time
      of any Equity Interest or Restricted Indebtedness; provided
      that no
      Restricted Stock Award and no phantom stock or similar plan providing for
      payments only to current or former directors, officers, consultants, advisors
      or
      employees of Holdings, the Parent Borrower or the Subsidiaries (or to their
      heirs or estates) shall be deemed to be Synthetic Purchase
      Agreement.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    42

     

    

    "Taxes"
      means
      any and all present or future taxes (of any nature whatsoever), levies, imposts,
      duties, deductions, charges or withholdings imposed by any Governmental
      Authority.

     

    "Term
      Loans"
      means
      Tranche D-1 Term Loans and Tranche D-2 Term Loans.

     

    "Three-Month
      Secondary CD Rate"
      means,
      for any day, the secondary market rate for three-month certificates of deposit
      reported as being in effect on such day (or, if such day is not a Business
      Day,
      the next preceding Business Day) by the Board through the public information
      telephone line of the Federal Reserve Bank of New York (which rate will,
      under the current practices of the Board, be published in Federal Reserve
      Statistical Release H.15(519) during the week following such day) or, if
      such rate is not so reported on such day or such next preceding Business Day,
      the average of the secondary market quotations for three-month certificates
      of
      deposit of major money center banks in New York City received at
      approximately 10:00 a.m., New York City time, on such day (or, if such
      day is not a Business Day, on the next preceding Business Day) by the
      Administrative Agent from three negotiable certificate of deposit dealers of
      recognized standing selected by it.

     

    "Total
      Indebtedness"
      means,
      as of any date, the sum of, without duplication, (a) the aggregate principal
      amount of Indebtedness of Holdings, the Parent Borrower and the Subsidiaries
      outstanding as of such date, in the amount that would be reflected on a balance
      sheet prepared as of such date on a consolidated basis in accordance with GAAP,
      plus (b) the aggregate principal amount of Indebtedness of Holdings, the Parent
      Borrower and the Subsidiaries outstanding as of such date that is not required
      to be reflected on a balance sheet in accordance with GAAP, determined on a
      consolidated basis, plus (c) obligations arising in respect of the
      Permitted Receivables Financing; provided
      that,
      for purposes of clause (b) above, the term "Indebtedness" shall not include
      (i)
      contingent obligations of Holdings, the Parent Borrower or any Subsidiary as
      an
      account party in respect of any letter of credit or letter of guaranty unless,
      without duplication, such letter of credit or letter of guaranty supports an
      obligation that constitutes Indebtedness and (ii) Indebtedness described in
      Section 6.01(a)(xiv); and provided further
      that
      "Total Indebtedness" shall not include (i) the Convertible Debentures to
      the extent that a redemption notice has been delivered in respect thereof and
      proceeds sufficient to effect such redemption have deposited with the trustee
      or
      agent thereof and (ii) the TriMas Notes.

     

    "Tranche
      D Commitment"
      means,
      with respect to each Lender, the commitment, if any, of such Lender to
      (a) make a Tranche D-1 Term Loan hereunder on the Effective Date or
      (b) make a Tranche D-2 Term Loan on the Restatement Effective Date, in
      each case expressed as an amount representing the maximum principal amount
      of
      the Tranche D Term Loan to be made by such Lender hereunder, as such commitment
      may be (a) reduced from time to time pursuant to Section 2.08 and
      (b) reduced or increased from time to time pursuant to assignments by or to
      such Lender pursuant to Section 10.04. The initial amount of each Lender's
      Tranche D Commitment is set forth 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    43

     

    

    on
      Schedule 2.01, or in the Assignment and Acceptance pursuant to which such
      Lender shall have assumed its Tranche D Commitment, as applicable. 

     

    "Tranche
      D Lender"
      means a
      Tranche D-1 Lender or a Tranche D-2 Lender.

     

    "Tranche
      D Maturity Date"
      means
      December 31, 2009, or if such day is not a Business Day, the first Business
      Day thereafter.

     

    "Tranche
      D Term Loan"
      means a
      Tranche D-1 Term Loan or a Tranche D-2 Term Loan.

     

    "Tranche
      D-1 Term Loan"
      means a
      Loan made on the Effective Date pursuant to clause (i) of Section
      2.01(a).

     

    "Tranche
      D-1 Lender"
      means a
      Lender with a Tranche D-1 Commitment or an outstanding Tranche D-1 Term
      Loan.

     

    "Tranche
      D-2 Term Loan"
      means a
      Loan made on the Restatement Effective Date pursuant to clause (ii) of Section
      2.01(a). 

     

    "Tranche
      D-2 Lender"
      means a
      Lender with a Tranche D-2 Commitment or an outstanding Tranche D-2 Term
      Loan.

     

    "Transactions"
      means
      (a) the execution, delivery and performance by each Loan Party of the Loan
      Documents to which it is to be a party, the borrowing of Loans, the use of
      the
      proceeds thereof and the issuance of Letters of Credit hereunder and
      (b) the other transactions contemplated hereby.

     

    "TriMas"
      means
      TriMas Corporation, a Delaware corporation.

     

    "TriMas
      Affiliate Agreements"
      means
      the Stock Purchase Agreement, the Corporate Services Agreement, the Warrant,
      the
      Shareholders Agreement and each agreement and transaction contemplated by any
      of
      the foregoing and entered into in connection with the TriMas
      Transactions.

     

    "TriMas
      Available Proceeds"
      means
      the Net Proceeds received by the Parent Borrower from the TriMas Transaction,
      less the TriMas Specified Proceeds.

     

    "TriMas
      Interest"
      means,
      at any time, the Equity Interest of TriMas held by the Parent Borrower or any
      Subsidiary.

     

    "TriMas
      Notes"
      means
      the senior subordinated notes of TriMas issued in contemplation of the TriMas
      Transaction.

     

    "TriMas
      Specified Proceeds"
      means
      the Net Proceeds received by the Parent Borrower from the TriMas Transaction
      in
      an amount equal to the sum of (x) $255,000,000 and (y) the amount by
      which obligations under the Permitted 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    44

     

    

    Receivables
      Financing are required to be repaid in connection with the reduction of
      borrowing base capacity thereunder as a result of the TriMas
      Transaction.

     

    "TriMas
      Transaction"
      means
      the transactions contemplated by the Stock Purchase Agreement dated as of
      May 17, 2002 among Holdings, the Parent Borrower and Heartland Industrial
      Partners, L.P. and the related documentation.

     

    "Type",
      when
      used in reference to any Loan or Borrowing, refers to whether the rate of
      interest on such Loan, or on the Loans comprising such Borrowing, is determined
      by reference to the Adjusted LIBO Rate or the Alternate Base Rate.

     

    "Withdrawal
      Liability"
      means
      liability to a Multiemployer Plan as a result of a complete or partial
      withdrawal from such Multiemployer Plan, as such terms are defined in
      Part I of Subtitle E of Title IV of ERISA.

     

    SECTION
      1.02. Classification
      of Loans and Borrowings.
      For
      purposes of this Agreement, Loans may be classified and referred to by Class
      (e.g.,
      a
      "Revolving Loan") or by Type (e.g.,
      a
      "Eurocurrency Loan") or by Class and Type (e.g.,
      a
      "Eurocurrency Revolving Loan"). Borrowings also may be classified and referred
      to by Class (e.g.,
      a
      "Revolving Borrowing") or by Type (e.g.,
      a
      "Eurocurrency Borrowing") or by Class and Type (e.g.,
      a
      "Eurocurrency Revolving Borrowing").

     

    SECTION
      1.03. Terms
      Generally.
      The
      definitions of terms herein shall apply equally to the singular and plural
      forms
      of the terms defined. Whenever the context may require, any pronoun shall
      include the corresponding masculine, feminine and neuter forms. The words
      "include", "includes" and "including" shall be deemed to be followed by the
      phrase "without limitation". The word "will" shall be construed to have the
      same
      meaning and effect as the word "shall". Unless the context requires otherwise
      (a) any definition of or reference to any agreement, instrument or other
      document herein shall be construed as referring to such agreement, instrument
      or
      other document as from time to time amended, supplemented or otherwise modified
      (subject to any restrictions on such amendments, supplements or modifications
      set forth herein), (b) any reference herein to any Person shall be
      construed to include such Person's successors and assigns, (c) the words
      "herein", "hereof" and "hereunder", and words of similar import, shall be
      construed to refer to this Agreement in its entirety and not to any particular
      provision hereof, (d) all references herein to Articles, Sections, Exhibits
      and Schedules shall be construed to refer to Articles and Sections of, and
      Exhibits and Schedules to, this Agreement and (e) the words "asset" and
      "property" shall be construed to have the same meaning and effect and to refer
      to any and all tangible and intangible assets and properties, including cash,
      securities, accounts and contract rights.

     

    SECTION
      1.04. Accounting
      Terms; GAAP.
      Except
      as otherwise expressly provided herein, all terms of an accounting or financial
      nature shall be construed in accordance with GAAP, as in effect from time to
      time; provided
      that, if
      the Parent Borrower notifies the Administrative Agent that the Parent Borrower
      requests an amendment to any provision hereof to eliminate the effect of any
      change occurring after the date hereof in GAAP or in the application thereof
      on
      the operation of such provision 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    45

     

    

    (or
      if
      the Administrative Agent notifies the Parent Borrower that the Required Lenders
      request an amendment to any provision hereof for such purpose), regardless
      of
      whether any such notice is given before or after such change in GAAP or in
      the
      application thereof, then such provision shall be interpreted on the basis
      of
      GAAP as in effect and applied immediately before such change shall have become
      effective until such notice shall have been withdrawn or such provision amended
      in accordance herewith.

     

    SECTION
      1.05. Exchange
      Rates.
      (a)  Not later than 1:00 p.m., New York City time, on each
      Calculation Date beginning with the date on which the initial Foreign Currency
      Borrowing is made or the initial Foreign Currency Letter of Credit is issued,
      the Administrative Agent shall (i) determine the Exchange Rate as of such
      Calculation Date with respect to each Foreign Currency and (ii) give notice
      thereof to the Revolving Lenders and the Parent Borrower (on behalf of itself
      and the Foreign Subsidiary Borrowers). The Exchange Rates so determined shall
      become effective on the first Business Day immediately following the relevant
      Calculation Date (a "Recalculation
      Date"),
      shall
      remain effective until the next succeeding Recalculation Date, and shall for
      all
      purposes of this Agreement (other than Section 9.01, Section 10.14 or
      any other provision expressly requiring the use of a current Exchange Rate)
      be
      the Exchange Rates employed in converting any amounts between dollars and
      Foreign Currencies.

     

    (b) Not
      later
      than 5:00 p.m., New York City time, on each Recalculation Date and
      each date on which Revolving Loans denominated in any Foreign Currency are
      made,
      the Administrative Agent shall (i) determine the aggregate amount of the
      Dollar Equivalents of (A) the principal amounts of the Foreign Currency
      Loans then outstanding (after giving effect to any Foreign Currency Loans made
      or repaid on such date) (B) the face value of outstanding Foreign Currency
      Letters of Credit and (C) unreimbursed drawings in respect of Foreign
      Currency Letters of Credit and (ii) notify the Revolving Lenders and the
      Parent Borrower (on behalf of itself and the Foreign Subsidiary Borrowers)
      of
      the results of such determination.

     

    SECTION
      1.06. Redenomination
      of Certain Foreign Currencies.
      (a)
 Each obligation of any party to this Agreement to make a payment
      denominated in the national currency unit of any member state of the European
      Union that adopts the Euro as its lawful currency after the date hereof shall
      be
      redenominated into Euro at the time of such adoption (in accordance with the
      EMU
      Legislation). If, in relation to the currency of any such member state, the
      basis of accrual of interest expressed in this Agreement in respect of that
      currency shall be inconsistent with any convention or practice in the London
      Interbank Market for the basis of accrual of interest in respect of the Euro,
      such expressed basis shall be replaced by such convention or practice with
      effect from the date on which such member state adopts the Euro as its lawful
      currency; provided
      that if
      any Foreign Currency Borrowing in the currency of such member state is
      outstanding immediately prior to such date, such replacement shall take effect,
      with respect to such Foreign Currency Borrowing, at the end of the then current
      Interest Period.

     

    (b) Each
      provision of this Agreement shall be subject to such reasonable changes of
      construction as the Administrative Agent may from time to time 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    46

     

    

    specify
      to be appropriate to reflect the adoption of the Euro by any member state of
      the
      European Union and any relevant market conventions or practices relating to
      the
      Euro.

     

     

    ARTICLE
      II

     

    The
      Credits

     

    SECTION
      2.01. Commitments.
      (a)  (i) Each Tranche D-1 Lender made a Tranche D-1 Term Loan to
      the Parent Borrower on the Effective Date in a principal amount not exceeding
      its Tranche D-1 Commitment, (ii) subject to the terms and conditions set
      forth herein and in the Amendment and Restatement Agreement, each Tranche D-2
      Lender agrees to make a Tranche D-2 Term Loan to the Parent Borrower on the
      Restatement Effective Date in a principal amount not exceeding its Tranche
      D-2
      Commitment and (iii) each Lender agrees to make Revolving Loans to the
      Parent Borrower and the Foreign Subsidiary Borrowers, as the case may be, from
      time to time during the Revolving Availability Period in an aggregate principal
      amount that will not result in such Lender's (A) Revolving Exposure
      exceeding such Lender's Revolving Commitment or (B) Foreign Currency
      Exposure exceeding such Lender's Foreign Currency Commitment.

     

    (b) Within
      the foregoing limits and subject to the terms and conditions set forth herein,
      the Parent Borrower and the Foreign Subsidiary Borrowers, as the case may be,
      may borrow, prepay and reborrow Revolving Loans. Amounts repaid in respect
      of
      Term Loans may not be reborrowed.

     

    SECTION
      2.02. Loans
      and Borrowings.
      (a)  Each Loan (other than a Swingline Loan) shall be made as part of
      a Borrowing consisting of Loans of the same Class and Type made by the Lenders
      ratably in accordance with their respective Commitments of the applicable Class.
      The failure of any Lender to make any Loan required to be made by it shall
      not
      relieve any other Lender of its obligations hereunder; provided
      that the
      Commitments of the Lenders are several and no Lender shall be responsible for
      any other Lender's failure to make Loans as required.

     

    (b) Subject
      to Section 2.14, each Revolving Borrowing (other than Foreign Currency
      Borrowings) and Term Borrowing shall be comprised entirely of ABR Loans or
      Eurocurrency Loans as the Parent Borrower may request in accordance herewith;
      provided
      that all
      Borrowings made on the Effective Date must be made as ABR Borrowings. All
      Foreign Currency Borrowings shall be comprised entirely of Eurocurrency Loans.
      Each Swingline Loan shall be an ABR Loan. Each Lender at its option may make
      any
      Eurocurrency Loan by causing any domestic or foreign branch or Affiliate of
      such
      Lender to make such Loan; provided
      that any
      exercise of such option shall not affect the obligation of any Borrower to
      repay
      such Loan in accordance with the terms of this Agreement.

     

    (c) At
      the
      commencement of each Interest Period for any Eurocurrency Borrowing, such
      Borrowing shall be in an aggregate amount that is an 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    47

     

    

    integral
      multiple of $1,000,000 (or 1,000,000 units of the applicable Foreign Currency)
      and not less than $5,000,000 (or 5,000,000 units in the applicable Foreign
      Currency. At the time that each ABR Revolving Borrowing is made, such Borrowing
      shall be in an aggregate amount that is an integral multiple of $1,000,000
      and
      not less than $5,000,000; provided
      that
      (i) an ABR Revolving Borrowing may be in an aggregate amount that is equal
      to the entire unused balance of the total Revolving Commitments and (ii) an
      ABR Revolving Borrowing or a Eurocurrency Revolving Borrowing, in the case
      of
      Foreign Currency Letters of Credit, may be in an aggregate amount that is equal
      to the amount that is required to finance the reimbursement of an LC
      Disbursement as contemplated by Section 2.05(e). Each Swingline Loan shall
      be in
      an amount that is an integral multiple of $100,000 and not less than $500,000.
      Borrowings of more than one Type and Class may be outstanding at the same time;
      provided
      that
      there shall not at any time be more than a total of 12 Eurocurrency Borrowings
      outstanding.

     

    (d) Notwithstanding
      any other provision of this Agreement, none of the Parent Borrower or any
      Foreign Subsidiary Borrower shall be entitled to request, or to elect to convert
      or continue, any Borrowing if the Interest Period requested with respect thereto
      would end after the Revolving Maturity Date or the Tranche D Maturity Date,
      as
      applicable.

     

    SECTION
      2.03. Requests
      for Borrowings.
      To
      request a Revolving Borrowing or Term Borrowing, the Parent Borrower or, in
      the
      case of a Foreign Currency Borrowing, the applicable Foreign Subsidiary
      Borrower, shall notify the Administrative Agent of such request by telephone
      (a) in the case of a Eurocurrency Borrowing, not later than
      12:00 noon, New York City time, three Business Days before the
      date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not
      later than 12:00 noon, New York City time, one Business Day
      before the date of the proposed Borrowing; provided
      that any
      such notice of an ABR Revolving Borrowing to finance the reimbursement of an
      LC
      Disbursement as contemplated by Section 2.05(e) may be given not later than
      10:00 a.m., New York City time, on the date of the proposed Borrowing.
      Each such telephonic Borrowing Request shall be irrevocable and shall be
      confirmed promptly by hand delivery or telecopy to the Administrative Agent
      of a
      written Borrowing Request in a form approved by the Administrative Agent and
      signed by the Parent Borrower and, in the case of a Foreign Currency Borrowing,
      the applicable Foreign Subsidiary Borrower. Each such telephonic and written
      Borrowing Request shall specify the following information in compliance with
      Section 2.02:

     

    (i)
      whether the requested Borrowing is to be a Revolving Borrowing or a Tranche
      D
      Term Borrowing;

     

    (ii)
      the
      aggregate amount of such Borrowing;

     

    (iii)
      the
      date of such Borrowing, which shall be a Business Day;

     

    (iv)
      whether such Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing,
      unless such Borrowing is a Foreign Currency Borrowing;

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    48

     

    

    (v)
      if
      such Borrowing is a Foreign Currency Borrowing, the relevant Foreign
      Currency;

     

    (vi)
      in
      the case of a Eurocurrency Borrowing, the initial Interest Period to be
      applicable thereto, which shall be a period contemplated by the definition
      of
      the term "Interest Period"; and

     

    (vii)
      the
      location and number of the Parent Borrower's or the applicable Foreign
      Subsidiary Borrower's, as the case may be, account to which funds are to be
      disbursed, which shall comply with the requirements of Section
      2.06.

     

    If
      no
      election as to the Type of Borrowing is specified, then the requested Borrowing
      shall be an ABR Borrowing, unless such Borrowing is a Foreign Currency
      Borrowing, in which case such Borrowing shall be a Eurocurrency Borrowing.
      If no
      Interest Period is specified with respect to any requested Eurocurrency
      Revolving Borrowing, then the Parent Borrower shall be deemed to have selected
      an Interest Period of one month's duration. Promptly following receipt of a
      Borrowing Request in accordance with this Section, the Administrative Agent
      shall advise each Lender of the details thereof and of the amount of such
      Lender's Loan to be made as part of the requested Borrowing.

     

    SECTION
      2.04. Swingline
      Loans.
      (a)  Subject to the terms and conditions set forth herein, the
      Swingline Lender agrees to make Swingline Loans to the Parent Borrower from
      time
      to time during the Revolving Availability Period, in an aggregate principal
      amount at any time outstanding that will not result in (i) the aggregate
      principal amount of outstanding Swingline Loans exceeding $50,000,000 or
      (ii) the sum of the total Revolving Exposures exceeding the total Revolving
      Commitments; provided
      that the
      Swingline Lender shall not be required to make a Swingline Loan to refinance
      an
      outstanding Swingline Loan. Within the foregoing limits and subject to the
      terms
      and conditions set forth herein, the Parent Borrower may borrow, prepay and
      reborrow Swingline Loans.

     

    (b) To
      request a Swingline Loan, the Parent Borrower shall notify the Administrative
      Agent of such request by telephone (confirmed by telecopy), not later than
      12:00 noon, New York City time, on the day of a proposed Swingline
      Loan. Each such notice shall be irrevocable and shall specify the requested
      date
      (which shall be a Business Day) and amount of the requested Swingline Loan.
      The
      Administrative Agent will promptly advise the Swingline Lender of any such
      notice received from the Parent Borrower. The Swingline Lender shall make each
      Swingline Loan available to the Parent Borrower by means of a credit to the
      general deposit account of the Parent Borrower with the Swingline Lender (or,
      in
      the case of a Swingline Loan made to finance the reimbursement of an LC
      Disbursement as provided in Section 2.05(e), by remittance to the Issuing
      Bank) by 3:00 p.m., New York City time, on the requested date of such
      Swingline Loan.

     

    (c) The
      Swingline Lender may by written notice given to the Administrative Agent not
      later than 12:00 noon, New York City time, on any Business Day require
      the Revolving Lenders to acquire participations on such Business Day in all
      

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    49

     

    

    or
      a
      portion of the Swingline Loans outstanding. Such notice shall specify the
      aggregate amount of Swingline Loans in which Revolving Lenders will participate.
      Promptly upon receipt of such notice, the Administrative Agent will give notice
      thereof to each Revolving Lender, specifying in such notice such Lender's
      Applicable Percentage of such Swingline Loan or Loans. Each Revolving Lender
      hereby absolutely and unconditionally agrees, upon receipt of notice as provided
      above, to pay to the Administrative Agent, for the account of the Swingline
      Lender, such Lender's Applicable Percentage of such Swingline Loan or Loans.
      Each Revolving Lender acknowledges and agrees that its obligation to acquire
      participations in Swingline Loans pursuant to this paragraph is absolute and
      unconditional and shall not be affected by any circumstance whatsoever,
      including the occurrence and continuance of a Default or reduction or
      termination of the Commitments, and that each such payment shall be made without
      any offset, abatement, withholding or reduction whatsoever (provided
      that
      such payment shall not cause such Lender's Revolving Exposure to exceed such
      Lender's Revolving Commitment). Each Revolving Lender shall comply with its
      obligation under this paragraph by wire transfer of immediately available funds,
      in the same manner as provided in Section 2.06 with respect to Loans made
      by such Lender (and Section 2.06 shall apply, mutatis mutandis,
      to the
      payment obligations of the Revolving Lenders), and the Administrative Agent
      shall promptly pay to the Swingline Lender the amounts so received by it from
      the Revolving Lenders. The Administrative Agent shall notify the Parent Borrower
      of any participations in any Swingline Loan acquired pursuant to this paragraph,
      and thereafter payments in respect of such Swingline Loan shall be made to
      the
      Administrative Agent and not to the Swingline Lender. Any amounts received
      by
      the Swingline Lender from the Parent Borrower (or other party on behalf of
      the
      Parent Borrower) in respect of a Swingline Loan after receipt by the Swingline
      Lender of the proceeds of a sale of participations therein shall be promptly
      remitted to the Administrative Agent; any such amounts received by the
      Administrative Agent shall be promptly remitted by the Administrative Agent
      to
      the Revolving Lenders that shall have made their payments pursuant to this
      paragraph and to the Swingline Lender, as their interests may appear. The
      purchase of participations in a Swingline Loan pursuant to this paragraph shall
      not relieve the Parent Borrower of any default in the payment
      thereof.

     

    SECTION
      2.05. Letters
      of Credit.
      (a)  General.
      Subject
      to the terms and conditions set forth herein, the Parent Borrower may request
      the issuance of Letters of Credit for its own account or the account of a
      Subsidiary and any Foreign Subsidiary Borrower may request the issuance of
      Foreign Currency Letters of Credit for its own account or the account of a
      Subsidiary of such Foreign Subsidiary Borrower, in each case in a form
      reasonably acceptable to the Administrative Agent and the Issuing Bank, at
      any
      time and from time to time during the Revolving Availability Period
      (provided
      that the
      Parent Borrower or a Foreign Subsidiary Borrower, as the case may be, shall
      be a
      co-applicant with respect to each Letter of Credit issued for the account of
      or
      in favor of a Subsidiary that is not a Foreign Subsidiary Borrower). In the
      event of any inconsistency between the terms and conditions of this Agreement
      and the terms and conditions of any form of letter of credit application or
      other agreement submitted by the Parent Borrower or any Foreign Subsidiary
      Borrower, as the case may be, to, or entered into by the Parent Borrower or
      any
      Foreign Subsidiary Borrower, as the case may be, with, the Issuing 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    50

     

    

    Bank
      relating to any Letter of Credit, the terms and conditions of this Agreement
      shall control.

     

    (b) Notice
      of Issuance, Amendment, Renewal, Extension; Certain Conditions.
      To
      request the issuance of a Letter of Credit (or the amendment, renewal or
      extension of an outstanding Letter of Credit), the Parent Borrower or the
      applicable Foreign Subsidiary Borrower, as the case may be, shall hand deliver
      or telecopy (or transmit by electronic communication, if arrangements for doing
      so have been approved by the Issuing Bank) to the Issuing Bank and the
      Administrative Agent (reasonably in advance of the requested date of issuance,
      amendment, renewal or extension) a notice requesting the issuance of a Letter
      of
      Credit, or identifying the Letter of Credit to be amended, renewed or extended,
      and specifying the date of issuance, amendment, renewal or extension (which
      shall be a Business Day), the date on which such Letter of Credit is to expire
      (which shall comply with paragraph (c) of this Section), the amount of such
      Letter of Credit, the name and address of the beneficiary thereof and such
      other
      information as shall be necessary to prepare, amend, renew or extend such Letter
      of Credit. If requested by the Issuing Bank, the Parent Borrower or the
      applicable Foreign Subsidiary Borrower, as the case may be, also shall submit
      a
      letter of credit application on the Issuing Bank's standard form in connection
      with any request for a Letter of Credit. A Letter of Credit shall be issued,
      amended, renewed or extended only if (and upon issuance, amendment, renewal
      or
      extension of each Letter of Credit the Parent Borrower or the applicable Foreign
      Subsidiary Borrower, as the case may be, shall be deemed to represent and
      warrant that), after giving effect to such issuance, amendment, renewal or
      extension (i) the LC Exposure shall not exceed $95,000,000 (provided
      that no
      more than $20,000,000 of LC Exposure may be used to support Indebtedness
      incurred outside of the United States), (ii) the total Revolving Exposures
      shall not exceed the total Revolving Commitments and (iii) the total
      Foreign Currency Exposures shall not exceed the total Foreign Currency
      Commitments.

     

    (c) Expiration
      Date.
      Each
      Letter of Credit shall expire at or prior to the close of business on the
      earlier of (i) the date one year after the date of the issuance of such
      Letter of Credit (or, in the case of any renewal or extension thereof, one
      year
      after such renewal or extension) and (ii) the date that is five Business
      Days prior to the Revolving Maturity Date.

     

    (d) Participations.
      By the
      issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing
      the amount thereof) and without any further action on the part of the Issuing
      Bank or the Lenders, the Issuing Bank hereby grants to each Revolving Lender,
      and each Revolving Lender hereby acquires from the Issuing Bank, a participation
      in such Letter of Credit equal to such Lender's Applicable Percentage of the
      aggregate amount available to be drawn under such Letter of Credit. In
      consideration and in furtherance of the foregoing, each Revolving Lender hereby
      absolutely and unconditionally agrees to pay to the Administrative Agent, for
      the account of the Issuing Bank, such Lender's Applicable Percentage of each
      LC
      Disbursement made by the Issuing Bank and not reimbursed by the Parent Borrower
      or the applicable Foreign Subsidiary Borrower, as the case may be, on the date
      due as provided in paragraph (e) of this Section, or of any reimbursement
      payment required to be refunded to the Parent 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    51

     

    

    Borrower
      or the applicable Foreign Subsidiary Borrower, as the case may be, for any
      reason. Each Lender acknowledges and agrees that its obligation to acquire
      participations pursuant to this paragraph in respect of Letters of Credit is
      absolute and unconditional and shall not be affected by any circumstance
      whatsoever, including any amendment, renewal or extension of any Letter of
      Credit or the occurrence and continuance of a Default or reduction or
      termination of the Commitments, and that each such payment shall be made without
      any offset, abatement, withholding or reduction whatsoever.

     

    (e) Reimbursement.
      If the
      Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit,
      the Parent Borrower or the applicable Foreign Subsidiary Borrower, as the case
      may be, shall reimburse such LC Disbursement by paying to the Administrative
      Agent an amount equal to such LC Disbursement not later than 12:00 noon,
      New York City time, on the date that such LC Disbursement is made, if the
      Parent Borrower or the applicable Foreign Subsidiary Borrower, as the case
      may
      be, shall have received notice of such LC Disbursement prior to 10:00 a.m.,
      New York City time or London time (in the case of Foreign Currency Letters
      of Credit), on such date, or, if such notice has not been received by the Parent
      Borrower or the applicable Foreign Subsidiary Borrower, as the case may be,
      prior to such time on such date, then not later than 12:00 noon,
      New York City time or London time (in the case of Foreign Currency Letters
      of Credit), on (i) the Business Day that the Parent Borrower or the
      applicable Foreign Subsidiary Borrower, as the case may be, receives such
      notice, if such notice is received prior to 10:00 a.m., New York City
      time or London time (in the case of Foreign Currency Letters of Credit), on
      the
      day of receipt, or (ii) the Business Day immediately following the day that
      the
      Parent Borrower or the applicable Foreign Subsidiary Borrower, as the case
      may
      be, receives such notice, if such notice is not received prior to such time
      on
      the day of receipt; provided
      that
      (i) the Parent Borrower may, subject to the conditions to borrowing set
      forth herein, request in accordance with Section 2.03 or 2.04 that such payment
      be financed with an ABR Revolving Borrowing or Swingline Loan in an equivalent
      amount and, to the extent so financed, the Parent Borrower's obligation to
      make
      such payment shall be discharged and replaced by the resulting ABR Revolving
      Borrowing or Swingline Loan and (ii) such Foreign Subsidiary Borrower may,
      subject to the conditions to borrowing set forth herein, request in accordance
      with Section 2.03 that such payment be financed with a Eurocurrency Revolving
      Borrowing in an equivalent amount in the applicable Foreign Currency and, to
      the
      extent so financed, such Foreign Subsidiary Borrower's obligation to make such
      payment shall be discharged and replaced by the resulting Eurocurrency Revolving
      Borrowing. If the Parent Borrower or the applicable Foreign Subsidiary Borrower,
      as the case may be, fails to make such payment when due, the Administrative
      Agent shall notify each Revolving Lender of the applicable LC Disbursement,
      the
      payment then due from the Parent Borrower or the applicable Foreign Subsidiary
      Borrower, as the case may be, in respect thereof and such Lender's Applicable
      Percentage thereof. Promptly following receipt of such notice, each Revolving
      Lender shall pay to the Administrative Agent its Applicable Percentage of the
      unreimbursed LC Disbursement in the same manner as provided in Section 2.06
      with respect to Loans made by such Lender (and Section 2.06 shall apply,
mutatis mutandis,
      to the
      payment obligations of the Revolving Lenders), and the Administrative Agent
      shall promptly pay to the Issuing Bank the amounts so received 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    52

     

    

    by
      it
      from the Revolving Lenders. Promptly following receipt by the Administrative
      Agent of any payment from the Parent Borrower or any applicable Foreign
      Subsidiary Borrower, as the case may be, pursuant to this paragraph, the
      Administrative Agent shall distribute such payment to the Issuing Bank or,
      to
      the extent that Revolving Lenders have made payments pursuant to this paragraph
      to reimburse the Issuing Bank, then to such Lenders and the Issuing Bank as
      their interests may appear. Any payment made by a Revolving Lender pursuant
      to
      this paragraph to reimburse the Issuing Bank for any LC Disbursement (other
      than
      the funding of ABR Revolving Loans or a Swingline Loan as contemplated above)
      shall not constitute a Loan and shall not relieve the Parent Borrower or any
      applicable Foreign Subsidiary Borrower, as the case may be, of its obligation
      to
      reimburse such LC Disbursement.

    

    (f) Obligations
      Absolute.
      The
      obligation of the Parent Borrower or any Foreign Subsidiary Borrower to
      reimburse LC Disbursements as provided in paragraph (e) of this Section
      shall be absolute, unconditional and irrevocable, and shall be performed
      strictly in accordance with the terms of this Agreement under any and all
      circumstances whatsoever and irrespective of (i) any lack of validity or
      enforceability of any Letter of Credit or this Agreement, or any term or
      provision therein, (ii) any draft or other document presented under a
      Letter of Credit proving to be forged, fraudulent or invalid in any respect
      or
      any statement therein being untrue or inaccurate in any respect,
      (iii) payment by the Issuing Bank under a Letter of Credit against
      presentation of a draft or other document that does not comply with the terms
      of
      such Letter of Credit, or (iv) any other event or circumstance whatsoever,
      whether or not similar to any of the foregoing, that might, but for the
      provisions of this Section, constitute a legal or equitable discharge of, or
      provide a right of setoff against, the obligations of the Parent Borrower or
      any
      Foreign Subsidiary Borrower hereunder. Neither the Administrative Agent, the
      Lenders nor the Issuing Bank, nor any of their Related Parties, shall have
      any
      liability or responsibility by reason of or in connection with the issuance
      or
      transfer of any Letter of Credit or any payment or failure to make any payment
      thereunder (irrespective of any of the circumstances referred to in the
      preceding sentence), or any error, omission, interruption, loss or delay in
      transmission or delivery of any draft, notice or other communication under
      or
      relating to any Letter of Credit (including any document required to make a
      drawing thereunder), any error in interpretation of technical terms or any
      consequence arising from causes beyond the control of the Issuing Bank;
provided
      that the
      foregoing shall not be construed to excuse the Issuing Bank from liability
      to
      the Parent Borrower or any applicable Foreign Subsidiary Borrower, as the case
      may be, to the extent of any direct damages (as opposed to consequential
      damages, claims in respect of which are hereby waived by the Parent Borrower
      or
      any applicable Foreign Subsidiary Borrower, as the case may be, to the extent
      permitted by applicable law) suffered by the Parent Borrower or any applicable
      Foreign Subsidiary Borrower, as the case may be, that are caused by the Issuing
      Bank's failure to exercise care when determining whether drafts and other
      documents presented under a Letter of Credit comply with the terms thereof.
      The
      parties hereto expressly agree that, in the absence of gross negligence or
      wilful misconduct on the part of the Issuing Bank (as finally determined by
      a
      court of competent jurisdiction), the Issuing Bank shall be deemed to have
      exercised care in each such determination. In furtherance of the foregoing
      and
      without limiting the generality thereof, the parties agree that, with respect
      to
      documents presented which appear on their 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    face
      to
      be in substantial compliance with the terms of a Letter of Credit, the Issuing
      Bank may, in its sole discretion, either accept and make payment upon such
      documents without responsibility for further investigation, regardless of any
      notice or information to the contrary, or refuse to accept and make payment
      upon
      such documents if such documents are not in strict compliance with the terms
      of
      such Letter of Credit.

     

    (g) Disbursement
      Procedures.
      The
      Issuing Bank shall, promptly following its receipt thereof, examine all
      documents purporting to represent a demand for payment under a Letter of Credit.
      The Issuing Bank shall promptly notify the Administrative Agent and the Parent
      Borrower or any applicable Foreign Subsidiary Borrower, as the case may be,
      by
      telephone (confirmed by telecopy) of such demand for payment and whether the
      Issuing Bank has made or will make an LC Disbursement thereunder; provided
      that any
      failure to give or delay in giving such notice shall not relieve the Parent
      Borrower or any applicable Foreign Subsidiary Borrower, as the case may be,
      of
      its obligation to reimburse the Issuing Bank and the Revolving Lenders with
      respect to any such LC Disbursement (other than with respect to the timing
      of
      such reimbursement obligation set forth in Section 2.05(e)).

     

    (h) Interim
      Interest.
      If the
      Issuing Bank shall make any LC Disbursement, then, unless the Parent Borrower
      or
      any applicable Foreign Subsidiary Borrower, as the case may be, shall reimburse
      such LC Disbursement in full on the date such LC Disbursement is made, the
      unpaid amount thereof shall bear interest, for each day from and including
      the
      date such LC Disbursement is made to but excluding the date that the Parent
      Borrower or any applicable Foreign Subsidiary Borrower, as the case may be,
      reimburses such LC Disbursement, at the rate per annum then applicable to ABR
      Revolving Loans; provided
      that, if
      the Parent Borrower or any applicable Foreign Subsidiary Borrower, as the case
      may be, fails to reimburse such LC Disbursement when due pursuant to
      paragraph (e) of this Section, then Section 2.13(c) shall apply.
      Interest accrued pursuant to this paragraph shall be for the account of the
      Issuing Bank, except that interest accrued on and after the date of payment
      by
      any Revolving Lender pursuant to paragraph (e) of this Section to reimburse
      the
      Issuing Bank shall be for the account of such Lender to the extent of such
      payment.

     

    (i) Replacement
      of the Issuing Bank; Additional Issuing Banks.
      The
      Issuing Bank may be replaced at any time by written agreement among the Parent
      Borrower (on behalf of itself and the Foreign Subsidiary Borrowers), the
      Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank.
      One or more Lenders may be appointed as additional Issuing Banks by written
      agreement among the Parent Borrower (on behalf of itself and the Foreign
      Subsidiary Borrowers), the Administrative Agent (whose consent will not be
      unreasonably withheld) and the Lender that is to be so appointed. The
      Administrative Agent shall notify the Lenders of any such replacement of the
      Issuing Bank or any such additional Issuing Bank. At the time any such
      replacement shall become effective, the Parent Borrower (on behalf of itself
      and
      the Foreign Subsidiary Borrowers) shall pay all unpaid fees accrued for the
      account of the replaced Issuing Bank pursuant to Section 2.12(b). From and
      after
      the effective date of any such replacement or addition, as applicable,
      (i) the successor or additional Issuing Bank shall have all the rights and
      obligations of the Issuing Bank under this Agreement with respect 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    54

     

    

    to
      Letters of Credit to be issued thereafter and (ii) references herein to the
      term
      "Issuing Bank" shall be deemed to refer to such successor or such addition
      or to
      any previous Issuing Bank, or to such successor or such addition and all
      previous Issuing Banks, as the context shall require. After the replacement
      of
      an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto
      and shall continue to have all the rights and obligations of an Issuing Bank
      under this Agreement with respect to Letters of Credit issued by it prior to
      such replacement, but shall not be required to issue additional Letters of
      Credit. If at any time there is more than one Issuing Bank hereunder, the Parent
      Borrower (on behalf of itself and the Foreign Subsidiary Borrowers) may, in
      its
      discretion, select which Issuing Bank is to issue any particular Letter of
      Credit.

     

    (j) Cash
      Collateralization.
      If any
      Event of Default shall occur and be continuing, on the Business Day that the
      Parent Borrower or any Foreign Subsidiary Borrower receives notice from the
      Administrative Agent or the Required Lenders (or, if the maturity of the Loans
      has been accelerated, Revolving Lenders with LC Exposure representing greater
      than 50% of the total LC Exposure) demanding the deposit of cash collateral
      pursuant to this paragraph, the Parent Borrower and the Foreign Subsidiary
      Borrowers, as the case may be, shall deposit in an account with the
      Administrative Agent, in the name of the Administrative Agent and for the
      benefit of the Lenders, an amount in cash in the applicable currency equal
      to
      the LC Exposure as of such date plus any accrued and unpaid interest thereon;
      provided
      that the
      obligation to deposit such cash collateral shall become effective immediately,
      and such deposit shall become immediately due and payable, without demand or
      other notice of any kind, upon the occurrence of any Event of Default with
      respect to the Parent Borrower or any Foreign Subsidiary Borrower described
      in
      clause (h) or (i) of Article VII. Each such deposit shall be held
      by the Administrative Agent as collateral for the payment and performance of
      the
      obligations of the Parent Borrower and the Foreign Subsidiary Borrower under
      this Agreement. The Administrative Agent shall have exclusive dominion and
      control, including the exclusive right of withdrawal, over such account. Other
      than any interest earned on the investment of such deposits, which investments
      shall be made at the option and sole discretion of the Administrative Agent
      and
      at the risk and expense of the Parent Borrower and the Foreign Subsidiary
      Borrower, such deposits shall not bear interest. Interest or profits, if any,
      on
      such investments shall accumulate in such account. Moneys in such account shall
      be applied by the Administrative Agent to reimburse the Issuing Bank for LC
      Disbursements for which it has not been reimbursed and, to the extent not so
      applied, shall be held for the satisfaction of the reimbursement obligations
      of
      the Parent Borrower and the Foreign Subsidiary Borrower for the LC Exposure
      at
      such time or, if the maturity of the Loans has been accelerated (but subject
      to
      the consent of Revolving Lenders with LC Exposure representing greater than
      50%
      of the total LC Exposure), be applied to satisfy other obligations of the Parent
      Borrower and the Foreign Subsidiary Borrower under this Agreement. If the Parent
      Borrower or any Foreign Subsidiary Borrower is required to provide an amount
      of
      cash collateral hereunder as a result of the occurrence of an Event of Default,
      such amount plus any accrued interest or realized profits of such amounts (to
      the extent not applied as aforesaid) shall be returned to the Parent Borrower
      or
      such Foreign Subsidiary Borrower within three Business Days after all Events
      of
      Default have been cured or waived. If the Parent Borrower is required to provide
      an amount of such collateral hereunder pursuant to Section 2.11(b), such
      amount plus any accrued interest or 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    55

     

    

    realized
      profits on account of such amount (to the extent not applied as aforesaid)
      shall
      be returned to the Parent Borrower as and to the extent that, after giving
      effect to such return, the Parent Borrower would remain in compliance with
      Section 2.11(b) and no Default or Event of Default shall have occurred and
      be continuing.

     

    SECTION
      2.06. Funding
      of Borrowings.
      (a)  Each Lender shall make each Loan to be made by it hereunder on
      the proposed date thereof by wire transfer of immediately available funds by
      12:00 noon, New York City time, or in the case of Foreign Currency
      Borrowings, London time, to the account of the Administrative Agent most
      recently designated by it for such purpose by notice to the Lenders;
provided
      that
      Swingline Loans shall be made as provided in Section 2.04. The
      Administrative Agent will make such Loans available to the Parent Borrower
      or
      the applicable Foreign Subsidiary Borrower, as the case may be, by promptly
      crediting the amounts so received, in like funds, to an account of the Parent
      Borrower or such Foreign Subsidiary Borrower, as the case may be, maintained
      with the Administrative Agent in New York City, or in the case of Foreign
      Currency Borrowings, London, and designated by the Parent Borrower or such
      Foreign Subsidiary Borrower, in the applicable Borrowing Request; provided
      that ABR
      Revolving Loans made to finance the reimbursement of an LC Disbursement as
      provided in Section 2.05(e) shall be remitted by the Administrative Agent to
      the
      Issuing Bank.

     

    (b) Unless
      the Administrative Agent shall have received notice from a Lender prior to
      the
      proposed date of any Borrowing that such Lender will not make available to
      the
      Administrative Agent such Lender's share of such Borrowing, the Administrative
      Agent may assume that such Lender has made such share available on such date
      in
      accordance with paragraph (a) of this Section and may, in reliance upon
      such assumption, make available to the Parent Borrower or the applicable Foreign
      Subsidiary Borrower, as the case may be, a corresponding amount. In such event,
      if a Lender has not in fact made its share of the applicable Borrowing available
      to the Administrative Agent, then the applicable Lender and the Parent Borrower
      or the applicable Foreign Subsidiary Borrower, as the case may be, severally
      agree to pay to the Administrative Agent forthwith on demand such corresponding
      amount with interest thereon, for each day from and including the date such
      amount is made available to the Parent Borrower or the applicable Foreign
      Subsidiary Borrower, as the case may be, to but excluding the date of payment
      to
      the Administrative Agent, at (i) in the case of such Lender, the greater of
      (x) the Federal Funds Effective Rate and (y) a rate determined by the
      Administrative Agent in accordance with banking industry rules on interbank
      compensation, except with respect to Foreign Currency Borrowings, the applicable
      rate shall be determined as specified in clause (y) above, or (ii) in the
      case of the Parent Borrower or any Foreign Subsidiary Borrower, the interest
      rate applicable to ABR Loans. If such Lender pays such amount to the
      Administrative Agent, then such amount shall constitute such Lender's Loan
      included in such Borrowing.

     

    SECTION
      2.07. Interest
      Elections.
      (a)  Each Revolving Borrowing and Term Borrowing initially shall be of
      the Type specified in the applicable Borrowing Request and, in the case of
      a
      Eurocurrency Borrowing, shall have an initial Interest Period as specified
      in
      such Borrowing Request. Thereafter, the Parent Borrower or the 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    56

     

    

    applicable
      Foreign Subsidiary Borrower, as the case may be, may elect to convert such
      Borrowing to a different Type or to continue such Borrowing and, in the case
      of
      a Eurocurrency Borrowing, may elect Interest Periods therefor, all as provided
      in this Section. The Parent Borrower or the applicable Foreign Subsidiary
      Borrower, as the case may be, may elect different options with respect to
      different portions of the affected Borrowing, in which case each such portion
      shall be allocated ratably among the Lenders holding the Loans comprising such
      Borrowing, and the Loans comprising each such portion shall be considered a
      separate Borrowing. This Section shall not apply to Swingline Borrowings, which
      may not be converted or continued.

     

    (b) To
      make
      an election pursuant to this Section, the Parent Borrower or the applicable
      Foreign Subsidiary Borrower, as the case may be, shall notify the Administrative
      Agent of such election by telephone by the time that a Borrowing Request would
      be required under Section 2.03 if the Parent Borrower or the applicable Foreign
      Subsidiary Borrower, as the case may be, were requesting a Revolving Borrowing
      or Term Borrowing of the Type resulting from such election to be made on the
      effective date of such election. Each such telephonic Interest Election Request
      shall be irrevocable and shall be confirmed promptly by hand delivery or
      telecopy to the Administrative Agent of a written Interest Election Request
      in a
      form approved by the Administrative Agent and signed by the Parent Borrower
      or
      the applicable Foreign Subsidiary Borrower, as the case may be.

     

    (c) Each
      telephonic and written Interest Election Request shall specify the following
      information in compliance with Section 2.02:

     

    (i)
      the
      Borrowing to which such Interest Election Request applies and, if different
      options are being elected with respect to different portions thereof, the
      portions thereof to be allocated to each resulting Borrowing (in which case
      the
      information to be specified pursuant to clauses (iii) and (iv) below shall
      be
      specified for each resulting Borrowing);

     

    (ii)
      the
      effective date of the election made pursuant to such Interest Election Request,
      which shall be a Business Day;

     

    (iii)
      whether the resulting Borrowing is to be an ABR Borrowing or a Eurocurrency
      Borrowing; and

     

    (iv)
      if
      the resulting Borrowing is a Eurocurrency Borrowing, the Interest Period to
      be
      applicable thereto after giving effect to such election, which shall be a period
      contemplated by the definition of the term "Interest Period".

     

    If
      any
      such Interest Election Request requests a Eurocurrency Borrowing but does not
      specify an Interest Period, then the Parent Borrower or the applicable Foreign
      Subsidiary Borrower, as the case may be, shall be deemed to have selected an
      Interest Period of one month's duration.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    57

     

    

    (d) Promptly
      following receipt of an Interest Election Request, the Administrative Agent
      shall advise each Lender of the details thereof and of such Lender's portion
      of
      each resulting Borrowing.

     

    (e) If
      an
      Interest Election Request with respect to a Eurocurrency Borrowing is not timely
      delivered prior to the end of the Interest Period applicable thereto, then,
      unless such Borrowing is repaid as provided herein, at the end of such Interest
      Period such Borrowing shall be converted to an ABR Borrowing (unless such
      Borrowing is a Foreign Currency Borrowing, in which case such Borrowing shall
      become due and payable on the last day of such Interest Period). Notwithstanding
      any contrary provision hereof, if an Event of Default has occurred and is
      continuing and the Administrative Agent, at the request of the Required Lenders,
      so notifies the Parent Borrower (on behalf of itself and the Foreign Subsidiary
      Borrowers), then, so long as an Event of Default is continuing (i) no
      outstanding Borrowing (other than a Foreign Currency Borrowing) may be converted
      to or continued as a Eurocurrency Borrowing and (ii) unless repaid, each
      Eurocurrency Borrowing (other than a Foreign Currency Borrowing) shall be
      converted to an ABR Borrowing at the end of the Interest Period applicable
      thereto.

     

    SECTION
      2.08. Termination
      and Reduction of Commitments.
      (a)
 Unless previously terminated, (i) the Tranche D-1 Commitments shall
      terminate at 5:00 p.m., New York City time, on the Effective Date,
      (ii) the Tranche D-2 Commitments shall terminate at 5:00 p.m.,
      New York City time, on the Restatement Effective Date and (iii) the
      Revolving Commitments shall terminate on the Revolving Maturity
      Date.

     

    (b) The
      Parent Borrower (on behalf of itself and the Foreign Subsidiary Borrowers)
      may
      at any time terminate, or from time to time reduce, the Commitments of any
      Class
      (it being understood that reductions of Revolving Commitments will automatically
      reduce Foreign Currency Commitments on a pro rata basis); provided
      that (i)
      each reduction of the Commitments of any Class shall be in an amount that is
      an
      integral multiple of $1,000,000 and not less than $5,000,000 and (ii) the
      Revolving Commitments shall not be terminated or reduced if, after giving effect
      to any concurrent prepayment of the Revolving Loans in accordance with Section
      2.11, the sum of the Revolving Exposures would exceed the total Revolving
      Commitments. In addition, in the event the proceeds from Permitted Senior Notes
      issued after the Amendment Date are used to repurchase, redeem or otherwise
      retire then outstanding Convertible Debentures, immediately following such
      repurchase, redemption or retirement (i) the Parent Borrower shall make any
      prepayment required pursuant to Section 2.11 as a result of such reduction
      and (ii) the total Revolving Commitments shall be automatically reduced in
      an amount equal to the amount used to effect such repurchase, redemption or
      retirement (together with a pro rata reduction of Foreign Currency Commitments)
      without any action on the part of any party, provided
      that,
      the total reduction to the Revolving Commitments under this clause (ii)
      shall not exceed $50,000,000.

     

    (c) The
      Parent Borrower (on behalf of itself and the Foreign Subsidiary Borrowers)
      shall
      notify the Administrative Agent of any election to terminate 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    58

     

    

    or
      reduce
      the Commitments under paragraph (b) of this Section at least three Business
      Days prior to the effective date of such termination or reduction, specifying
      such election and the effective date thereof. Promptly following receipt of
      any
      notice, the Administrative Agent shall advise the Lenders of the contents
      thereof. Each notice delivered by the Parent Borrower (on behalf of itself
      and
      the Foreign Subsidiary Borrowers) pursuant to this Section shall be irrevocable;
      provided
      that a
      notice of termination of the Revolving Commitments delivered by the Parent
      Borrower (on behalf of itself and the Foreign Subsidiary Borrowers) may state
      that such notice is conditioned upon the effectiveness of other credit
      facilities or the occurrence of another transaction, in which case such notice
      may be revoked by the Parent Borrower (on behalf of itself and the Foreign
      Subsidiary Borrowers) (by notice to the Administrative Agent on or prior to
      the
      specified effective date) if such condition is not satisfied. Any termination
      or
      reduction of the Commitments of any Class shall be permanent. Each reduction
      of
      the Commitments of any Class shall be made ratably among the Lenders in
      accordance with their respective Commitments of such Class.

     

    SECTION
      2.09. Repayment of
      Loans; Evidence of Debt.
      (a)  The Parent Borrower and each Foreign Subsidiary Borrower (with
      respect to Foreign Currency Loans made to such Foreign Subsidiary Borrower)
      hereby unconditionally promises to pay (i) to the Administrative Agent for
      the account of each Lender the then unpaid principal amount of each Revolving
      Loan of such Lender on the Revolving Maturity Date, (ii) to the Administrative
      Agent for the account of each Lender the then unpaid principal amount of each
      Term Loan of such Lender as provided in Section 2.10 and (iii) to the Swingline
      Lender the then unpaid principal amount of each Swingline Loan on the earlier
      of
      the Revolving Maturity Date and the first date after such Swingline Loan is
      made
      that is the 15th or last day of a calendar month and is at least two Business
      Days after such Swingline Loan is made; provided
      that on
      each date that a Revolving Borrowing (other than a Foreign Currency Borrowing)
      is made, the Parent Borrower shall repay all Swingline Loans that were
      outstanding on the date such Borrowing was requested.

     

    (b) Each
      Lender shall maintain in accordance with its usual practice an account or
      accounts evidencing the indebtedness of the Parent Borrower and the Foreign
      Subsidiary Borrowers to such Lender resulting from each Loan made by such
      Lender, including the amounts of principal and interest payable and paid to
      such
      Lender from time to time hereunder.

     

    (c) The
      Administrative Agent shall maintain accounts in which it shall record
      (i) the amount of each Loan made hereunder, the Class and Type thereof and
      the Interest Period applicable thereto, (ii) the amount of any principal or
      interest due and payable or to become due and payable from the Parent Borrower
      and the Foreign Subsidiary Borrowers to each Lender hereunder and (iii) the
      amount of any sum received by the Administrative Agent hereunder for the account
      of the Lenders and each Lender's share thereof.

     

    (d) The
      entries made in the accounts maintained pursuant to paragraph (b)
      or (c) of this Section shall be prima facie
      evidence
      of the existence and 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    59

     

    

    amounts
      of the obligations recorded therein; provided
      that the
      failure of any Lender or the Administrative Agent to maintain such accounts
      or
      any error therein shall not in any manner affect the obligation of the Parent
      Borrower and the Foreign Subsidiary Borrowers to repay the Loans in accordance
      with the terms of this Agreement.

     

    (e) Any
      Lender may request that Loans of any Class made by it be evidenced by a
      promissory note. In such event, the Parent Borrower or the applicable Foreign
      Subsidiary Borrower, as the case may be, shall prepare, execute and deliver
      to
      such Lender a promissory note payable to the order of such Lender (or, if
      requested by such Lender, to such Lender and its registered assigns) and in
      a
      form approved by the Administrative Agent. Thereafter, the Loans evidenced
      by
      such promissory note and interest thereon shall at all times (including after
      assignment pursuant to Section 10.04) be represented by one or more
      promissory notes in such form payable to the order of the payee named therein
      (or, if such promissory note is a registered note, to such payee and its
      registered assigns).

     

    SECTION
      2.10. Amortization
      of Term Loans. 

     

    (a)  Subject
      to adjustment pursuant to paragraph (c) of this Section, the Parent
      Borrower shall repay Tranche D Term Borrowings on each date set forth below
      in
      the aggregate principal amount set forth opposite such date:

     

    

    
      	
              Date

               

            	
              Amount

               

            
	
              December
                31, 2002

               

            	
              $500,000

               

            
	
              June
                30, 2003

               

            	
              $500,000

               

            
	
              December
                31, 2003

               

            	
              $500,000

               

            
	
              June
                30, 2004

               

            	
              $500,000

               

            
	
              December
                31, 2004

               

            	
              $500,000

               

            
	
              June
                30, 2005

               

            	
              $500,000

               

            
	
              December
                31, 2005

               

            	
              $500,000

               

            
	
              June
                30, 2006

               

            	
              $525,000

               

            
	
              December
                31, 2006

               

            	
              $525,000

               

            
	
              June
                30, 2007

               

            	
              $525,000

               

            
	
              December
                31, 2007

               

            	
              $525,000

               

            
	
              June
                30, 2008

               

            	
              $525,000

               

            
	
              December
                31, 2008

               

            	
              $525,000

               

            
	
              June
                30, 2009

               

            	
              $525,000

               

            
	
              Tranche D
                Maturity Date

               

            	
              $442,825,000

               

            

    

    

    (b) To
      the
      extent not previously paid, all Tranche D Term Loans shall be due and payable
      on
      the Tranche D Maturity Date.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    60

     

    

    (c) Any
      prepayment of a Term Borrowing shall be applied to reduce the subsequent
      scheduled repayments of the Term Borrowings to be made pursuant to this Section
      ratably. Notwithstanding the foregoing, any prepayment of Eurocurrency Term
      Borrowings made pursuant to Section 2.11(a) on a date that is (x) the
      last day of an Interest Period and (y) no more than five days prior to a
      scheduled amortization payment pursuant to this Section shall be applied, first,
      to reduce such scheduled payment, and any excess shall be applied as required
      by
      the first sentence of this Section 2.10(c).

     

    (d) Prior
      to
      any repayment of any Term Borrowings hereunder, the Parent Borrower shall select
      the Borrowing or Borrowings to be repaid and shall notify the Administrative
      Agent by telephone (confirmed by telecopy) of such selection not later than
      11:00 a.m., New York City time, three Business Days before the
      scheduled date of such repayment. Each repayment of a Borrowing shall be applied
      ratably to the Loans included in the repaid Borrowing. Repayments of Term
      Borrowings shall be accompanied by accrued interest on the amount
      repaid.

     

    SECTION
      2.11. Prepayment
      of Loans.
      (a)  The Parent Borrower and the Foreign Subsidiary Borrowers, as the
      case may be, shall have the right at any time and from time to time to prepay
      any Borrowing in whole or in part, subject to the requirements of this
      Section.

     

    (b) In
      the
      event and on such occasion that the sum of the Revolving Exposures exceeds
      the
      total Revolving Commitments, the Parent Borrower and the Foreign Subsidiary
      Borrowers, as the case may be, shall prepay Revolving Borrowings or Swingline
      Borrowings (or, if no such Borrowings are outstanding, deposit cash collateral
      in an account with the Administrative Agent pursuant to Section 2.05(j)) in
      an aggregate amount equal to such excess.

     

    (c) In
      the
      event that the sum of the Foreign Currency Exposures exceeds (i) 105% of
      the total Foreign Currency Commitments solely as a result of currency
      fluctuations or (ii) the total Foreign Currency Commitments (other than as
      a result of currency fluctuations), the Foreign Subsidiary Borrowers shall
      prepay Foreign Currency Borrowings (or if no such Borrowings are outstanding,
      deposit cash collateral in an account with the Administrative Agent pursuant
      to
      Section 2.05(j)) in an amount equal to the amount by which the sum of
      Foreign Currency Exposures exceed the total Foreign Currency Commitments no
      later than in the case of clause (i) above the next Interest Payment Date
      and in the case of clause (ii), the first Business Day that such excess
      exists.

     

    (d) (1)
      In
      the event and on each occasion that any Net Proceeds are received by or on
      behalf of Holdings, the Parent Borrower or any Subsidiary in respect of any
      Prepayment Event (other than TriMas Available Proceeds and TriMas Specified
      Proceeds), the Parent Borrower shall, within three Business Days after such
      Net
      Proceeds are received, prepay Term Borrowings in an aggregate amount equal
      to
      such Net Proceeds.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    61

     

    

    (2)
      In
      the event that $205,000,000 of the TriMas Specified Proceeds are not
      applied to repurchase, redeem, repay or otherwise retire the Convertible
      Debentures or an irrevocable notice of redemption and deposit of such proceeds
      has not been delivered to the trustee thereunder within 90 days of the date
      that the TriMas Transaction is consummated, the Parent Borrower shall promptly
      thereafter apply the amount of TriMas Specified Proceeds not so used to prepay
      Term Borrowings.

     

    (e) In
      the
      event and on each occasion that any Net Proceeds are received by or on behalf
      of
      Holdings, the Parent Borrower or any Subsidiary in respect of any Specified
      Prepayment Event, the Parent Borrower shall, within three Business Days after
      such Net Proceeds are received, prepay Term Borrowings in an aggregate amount
      equal to such Net Proceeds.

     

    (f) Following
      the end of each fiscal year of the Parent Borrower, commencing with the fiscal
      year ending December 31, 2001, the Parent Borrower shall prepay Term
      Borrowings in an aggregate amount equal to 75% of Excess Cash Flow for such
      fiscal year; provided
      that
      such percentage shall be reduced from 75% to 50% with respect to the prepayment
      under this paragraph (f), if the Parent Borrower's Leverage Ratio as of the
      last fiscal quarter preceding the applicable prepayment date is less than 3.00
      to 1.00. Each prepayment pursuant to this paragraph shall be made on or before
      the date on which financial statements are delivered pursuant to Section 5.01
      with respect to the fiscal year for which Excess Cash Flow is being calculated
      (and in any event within 95 days after the end of such fiscal
      year).

     

    (g) Prior
      to
      any optional or mandatory prepayment of Borrowings hereunder, the Parent
      Borrower (on behalf of itself and the Foreign Subsidiary Borrowers) shall select
      the Borrowing or Borrowings to be prepaid and shall specify such selection
      in
      the notice of such prepayment pursuant to paragraph (h) of this
      Section.

     

    (h) The
      Parent Borrower (on behalf of itself and the Foreign Subsidiary Borrowers)
      shall
      notify the Administrative Agent (and, in the case of prepayment of a Swingline
      Loan, the Swingline Lender) by telephone (confirmed by telecopy) of any
      prepayment hereunder (i) in the case of prepayment of a Eurocurrency
      Borrowing, not later than 12:00 noon, New York City time, three
      Business Days before the date of prepayment, (ii) in the case of prepayment
      of
      an ABR Borrowing, not later than 12:00 noon, New York City time, one
      Business Day before the date of prepayment or (iii) in the case of prepayment
      of
      a Swingline Loan, not later than 12:00 noon, New York City time, on
      the date of prepayment. Each such notice shall be irrevocable and shall specify
      the prepayment date, the principal amount of each Borrowing or portion thereof
      to be prepaid and, in the case of a mandatory prepayment, a reasonably detailed
      calculation of the amount of such prepayment; provided
      that, if
      a notice of optional prepayment is given in connection with a conditional notice
      of termination of the Revolving Commitments as contemplated by
      Section 2.08, then such notice of prepayment may be revoked if such notice
      of termination is revoked in accordance with Section 2.08. Promptly
      following receipt of any such notice (other than a notice relating solely to
      Swingline Loans), the Administrative Agent shall advise the Lenders of the
      contents thereof. Each partial prepayment of any Borrowing shall be in an amount
      that

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    62

     

     

    would
      be
      permitted in the case of an advance of a Borrowing of the same Type as provided
      in Section 2.02, except as necessary to apply fully the required amount of
      a
      mandatory prepayment. Each prepayment of a Borrowing shall be applied ratably
      to
      the Loans included in the prepaid Borrowing. Prepayments shall be accompanied
      by
      accrued interest to the extent required by Section 2.13.

     

    SECTION
      2.12. Fees.
      (a)  The Parent Borrower (on behalf of itself and the Foreign
      Subsidiary Borrowers) agrees to pay to the Administrative Agent for the account
      of each Lender a commitment fee, which shall accrue at the Applicable Rate
      on
      the average daily unused amount of each Commitment of such Lender during the
      period from and including the Effective Date to but excluding the date on which
      such Commitment terminates. Accrued commitment fees shall be payable in arrears
      (i) in the case of commitment fees in respect of the Revolving Commitments,
      on the last day of March, June, September and December of each year and on
      the
      date on which the Revolving Commitments terminate, commencing on the first
      such
      date to occur after the date hereof and (ii) in the case of commitment fees
      in respect of the Tranche D Term Commitments, on the Effective Date or any
      earlier date on which such Commitments terminate. All commitment fees shall
      be
      computed on the basis of a year of 360 days and shall be payable for the
      actual number of days elapsed (including the first day but excluding the last
      day). For purposes of computing commitment fees with respect to Revolving
      Commitments, a Revolving Commitment of a Lender shall be deemed to be used
      to
      the extent of the outstanding Revolving Loans and LC Exposure of such Lender
      (and the Swingline Exposure of such Lender shall be disregarded for such
      purpose).

     

    (b) The
      Parent Borrower (on behalf of itself and the Foreign Subsidiary Borrowers)
      agrees to pay (i) to the Administrative Agent for the account of each
      Revolving Lender a participation fee with respect to its participations in
      Letters of Credit, which shall accrue at the same Applicable Rate as interest
      on
      Eurocurrency Revolving Loans on the average daily amount of such Lender's LC
      Exposure (excluding any portion thereof attributable to unreimbursed LC
      Disbursements) during the period from and including the Effective Date to but
      excluding the later of the date on which such Lender's Revolving Commitment
      terminates and the date on which such Lender ceases to have any LC Exposure,
      and
      (ii) to the Issuing Bank a fronting fee, which shall accrue at the rate of
      0.25%
      per annum on the average daily amount of the LC Exposure (excluding any portion
      thereof attributable to unreimbursed LC Disbursements) during the period from
      and including the Effective Date to but excluding the later of the date of
      termination of the Revolving Commitments and the date on which there ceases
      to
      be any LC Exposure, as well as the Issuing Bank's standard fees with respect
      to
      the issuance, amendment, renewal or extension of any Letter of Credit or
      processing of drawings thereunder. Participation fees and fronting fees accrued
      through and including the last day of March, June, September and December of
      each year shall be payable on the third Business Day following such last day,
      commencing on the first such date to occur after the Effective Date;
provided
      that all
      such fees shall be payable on the date on which the Revolving Commitments
      terminate and any such fees accruing after the date on which the Revolving
      Commitments terminate shall be payable on demand. Any other fees payable to
      the
      Issuing Bank pursuant to this paragraph shall be payable within 10 days
      after demand. All participation fees and fronting fees shall be computed on
      the
      basis of a 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     63

     

    

    year
      of
      360 days and shall be payable for the actual number of days elapsed
      (including the first day but excluding the last day).

     

    (c) The
      Parent Borrower (on behalf of itself and the Foreign Subsidiary Borrowers)
      agrees to pay to the Administrative Agent, for its own account, fees payable
      in
      the amounts and at the times separately agreed upon between the Parent Borrower
      and the Administrative Agent.

     

    (d) All
      fees
      payable hereunder shall be paid on the dates due, in immediately available
      funds, to the Administrative Agent (or to the Issuing Bank, in the case of
      fees
      payable to it) for distribution, in the case of commitment fees and
      participation fees, to the Lenders entitled thereto. Fees paid shall not be
      refundable under any circumstances.

     

    SECTION
      2.13. Interest.
      (a)  The Loans comprising each ABR Borrowing (including each
      Swingline Loan) shall bear interest at the Alternate Base Rate plus the
      Applicable Rate.

     

    (b) The
      Loans
      comprising each Eurocurrency Borrowing shall bear interest at the Adjusted
      LIBO
      Rate for the Interest Period in effect for such Borrowing plus the Applicable
      Rate.

     

    (c) Notwithstanding
      the foregoing, if any principal of or interest on any Loan or any fee or other
      amount payable by the Parent Borrower or the Foreign Subsidiary Borrowers,
      as
      the case may be, hereunder is not paid when due, whether at stated maturity,
      upon acceleration or otherwise, such overdue amount shall bear interest, after
      as well as before judgment, at a rate per annum equal to (i) in the case of
      overdue principal of any Loan, 2% plus the rate otherwise applicable to such
      Loan as provided in the preceding paragraphs of this Section or (ii) in the
      case
      of any other amount, 2% plus the rate applicable to ABR Revolving Loans as
      provided in paragraph (a) of this Section.

     

    (d) Accrued
      interest on each Loan shall be payable in arrears on each Interest Payment
      Date
      for such Loan and, in the case of Revolving Loans, upon termination of the
      Revolving Commitments; provided
      that
      (i) interest accrued pursuant to paragraph (c) of this Section shall
      be payable on demand, (ii) in the event of any repayment or prepayment of any
      Loan (other than a prepayment of an ABR Revolving Loan prior to the end of
      the
      Revolving Availability Period), accrued interest on the principal amount repaid
      or prepaid shall be payable on the date of such repayment or prepayment and
      (iii) in the event of any conversion of any Eurocurrency Loan prior to the
      end
      of the current Interest Period therefor, accrued interest on such Loan shall
      be
      payable on the effective date of such conversion.

     

    (e) All
      interest hereunder shall be computed on the basis of a year of 360 days,
      except that (i) interest on a Foreign Currency Borrowing denominated in
      Sterling and (ii) interest computed by reference to the Alternate Base Rate
      at times when the Alternate Base Rate is based on the Prime Rate shall be
      computed on the basis of a year of 365 days (or 366 days in a leap
      year), and in each case shall be payable for the 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    64

     

    

    actual
      number of days elapsed (including the first day but excluding the last day).
      The
      applicable Alternate Base Rate or Adjusted LIBO Rate shall be determined by
      the
      Administrative Agent, and such determination shall be conclusive absent manifest
      error.

     

    SECTION
      2.14. Alternate
      Rate of Interest.
      If prior
      to the commencement of any Interest Period for a Eurocurrency Borrowing
      denominated in any currency:

     

    (a)
      the
      Administrative Agent determines (which determination shall be conclusive absent
      manifest error) that adequate and reasonable means do not exist for ascertaining
      the Adjusted LIBO Rate for such Interest Period; or

     

    (b)
      the
      Administrative Agent is advised by the Required Lenders that the Adjusted LIBO
      Rate for such Interest Period will not adequately and fairly reflect the cost
      to
      such Lenders of making or maintaining their Loans included in such Borrowing
      for
      such Interest Period;

     

    then
      the
      Administrative Agent shall give notice thereof to the Parent Borrower (on behalf
      of itself and the Foreign Subsidiary Borrowers) and the Lenders by telephone
      or
      telecopy as promptly as practicable thereafter and, until the Administrative
      Agent notifies the Parent Borrower (on behalf of itself and the Foreign
      Subsidiary Borrowers) and the Lenders that the circumstances giving rise to
      such
      notice no longer exist, (i) any Interest Election Request that requests the
      conversion of any Borrowing denominated in such currency to, or continuation
      of
      any Borrowing denominated in such currency as, a Eurocurrency Borrowing shall
      be
      ineffective, and any Eurocurrency Borrowing denominated in such currency that
      is
      requested to be continued (A) if such currency is the dollar, shall be
      converted to an ABR Borrowing on the last day of the Interest Period applicable
      thereto and (B) if such currency is a Foreign Currency, shall be repaid on
      the last day of the Interest Period applicable thereto and (ii) if any Borrowing
      Request requests a Eurocurrency Borrowing denominated in such currency
      (A) if such currency is the dollar, such Borrowing shall be made as an ABR
      Borrowing and (B) if such currency is a Foreign Currency, such Borrowing
      Request shall be ineffective.

     

    SECTION
      2.15. Increased
      Costs.
      (a)  If any Change in Law shall:

     

    (i)
      impose, modify or deem applicable any reserve, special deposit or similar
      requirement against assets of, deposits with or for the account of, or credit
      extended by, any Lender (except any such reserve requirement reflected in the
      Adjusted LIBO Rate) or the Issuing Bank; or

     

    (ii)
      impose on any Lender or the Issuing Bank or the London interbank market any
      other condition affecting this Agreement or Eurocurrency Loans made by such
      Lender or any Letter of Credit or participation therein;

     

    and
      the
      result of any of the foregoing shall be to increase the cost to such Lender
      of
      making or maintaining any Eurocurrency Loan (or of maintaining its obligation
      to
      make any such Loan) or to increase the cost to such Lender or the Issuing Bank
      of participating in, issuing or maintaining any Letter of Credit or to reduce
      the amount of any sum 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    received
      or receivable by such Lender or the Issuing Bank hereunder (whether of
      principal, interest or otherwise), then the Parent Borrower or the applicable
      Foreign Subsidiary Borrowers, as the case may be, will pay to such Lender or
      the
      Issuing Bank, as the case may be, such additional amount or amounts as will
      compensate such Lender or the Issuing Bank, as the case may be, for such
      additional costs incurred or reduction suffered.

     

    (b) If
      any
      Lender or the Issuing Bank determines that any Change in Law regarding capital
      requirements has or would have the effect of reducing the rate of return on
      such
      Lender's or the Issuing Bank's capital or on the capital of such Lender's or
      the
      Issuing Bank's holding company, if any, as a consequence of this Agreement
      or
      the Loans made by, or participations in Letters of Credit held by, such Lender,
      or the Letters of Credit issued by the Issuing Bank, to a level below that
      which
      such Lender or the Issuing Bank or such Lender's or the Issuing Bank's holding
      company could have achieved but for such Change in Law (taking into
      consideration such Lender's or the Issuing Bank's policies and the policies
      of
      such Lender's or the Issuing Bank's holding company with respect to capital
      adequacy), then from time to time the Parent Borrower or the applicable Foreign
      Subsidiary Borrowers, as the case may be, will pay to such Lender or the Issuing
      Bank, as the case may be, such additional amount or amounts as will compensate
      such Lender or the Issuing Bank or such Lender's or the Issuing Bank's holding
      company for any such reduction suffered.

     

    (c) A
      certificate of a Lender or the Issuing Bank setting forth the amount or amounts
      necessary to compensate such Lender or the Issuing Bank or its holding company,
      as the case may be, as specified in paragraph (a) or (b) of this
      Section shall be delivered to the Parent Borrower (on behalf of itself and
      the
      Foreign Subsidiary Borrowers) and shall be conclusive absent manifest error.
      The
      Parent Borrower or the applicable Foreign Subsidiary Borrowers, as the case
      may
      be, shall pay such Lender or the Issuing Bank, as the case may be, the amount
      shown as due on any such certificate within 10 days after receipt
      thereof.

     

    (d) Failure
      or delay on the part of any Lender or the Issuing Bank to demand compensation
      pursuant to this Section shall not constitute a waiver of such Lender's or
      the
      Issuing Bank's right to demand such compensation; provided
      that
      neither the Parent Borrower nor any Foreign Subsidiary Borrower shall be
      required to compensate a Lender or the Issuing Bank pursuant to this Section
      for
      any increased costs or reductions incurred more than 270 days prior to the
      date that such Lender or the Issuing Bank, as the case may be, notifies the
      Parent Borrower (on behalf of itself and the Foreign Subsidiary Borrowers)
      of
      the Change in Law giving rise to such increased costs or reductions and of
      such
      Lender's or the Issuing Bank's intention to claim compensation therefor;
provided further
      that, if
      the Change in Law giving rise to such increased costs or reductions is
      retroactive, then the 270-day period referred to above shall be extended to
      include the period of retroactive effect thereof.

     

    SECTION
      2.16. Break
      Funding Payments.
      In the
      event of (a) the payment of any principal of any Eurocurrency Loan other
      than on the last day of an Interest Period applicable thereto (including as
      a
      result of an Event of Default), (b) the 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    conversion
      of any Eurocurrency Loan other than on the last day of the Interest Period
      applicable thereto, (c) the failure to borrow, convert, continue or prepay
      any Revolving Loan or Term Loan on the date specified in any notice delivered
      pursuant hereto (regardless of whether such notice may be revoked under Section
      2.11(h) and is revoked in accordance therewith) or (d) the assignment of
      any Eurocurrency Loan other than on the last day of the Interest Period
      applicable thereto as a result of a request by the Parent Borrower or any
      Foreign Subsidiary Borrower pursuant to Section 2.19, then, in any such
      event, the Parent Borrower or the applicable Foreign Subsidiary Borrower, as
      the
      case may be, shall compensate each Lender for the loss, cost and expense
      attributable to such event. In the case of a Eurocurrency Loan, such loss,
      cost
      or expense to any Lender shall be deemed to include an amount determined by
      such
      Lender to be the excess, if any, of (i) the amount of interest which would
      have accrued on the principal amount of such Loan had such event not occurred,
      at the Adjusted LIBO Rate that would have been applicable to such Loan, for
      the
      period from the date of such event to the last day of the then current Interest
      Period therefor (or, in the case of a failure to borrow, convert or continue,
      for the period that would have been the Interest Period for such Loan), over
      (ii) the amount of interest which would accrue on such principal amount for
      such
      period at the interest rate which such Lender would bid were it to bid, at
      the
      commencement of such period, for deposits in the applicable currency of a
      comparable amount and period from other banks in the Eurocurrency market. A
      certificate of any Lender setting forth any amount or amounts that such Lender
      is entitled to receive pursuant to this Section shall be delivered to the Parent
      Borrower (on behalf of itself and the Foreign Subsidiary Borrowers) and shall
      be
      conclusive absent manifest error. The Parent Borrower or the applicable Foreign
      Subsidiary Borrower, as the case may be, shall pay such Lender the amount shown
      as due on any such certificate within 10 days after receipt
      thereof.

     

    SECTION
      2.17. Taxes.
      (a)  Any and all payments by or on account of any obligation of the
      Parent Borrower or any Foreign Subsidiary Borrower hereunder or under any other
      Loan Document shall be made free and clear of and without deduction for any
      Indemnified Taxes or Other Taxes; provided
      that if
      the Parent Borrower or any Foreign Subsidiary Borrower shall be required to
      deduct any Indemnified Taxes or Other Taxes from such payments, then
      (i) the sum payable shall be increased as necessary so that after making
      all required deductions (including deductions applicable to additional sums
      payable under this Section) the Administrative Agent, Lender or Issuing Bank
      (as
      the case may be) receives an amount equal to the sum it would have received
      had
      no such deductions been made, (ii) the Parent Borrower or such Foreign
      Subsidiary Borrower, as the case may be, shall make such deductions and
      (iii) the Parent Borrower or such Foreign Subsidiary Borrower, as the case
      may be, shall pay the full amount deducted to the relevant Governmental
      Authority in accordance with applicable law.

     

    (b) In
      addition, the Parent Borrower and each Foreign Subsidiary Borrower shall pay
      any
      Other Taxes to the relevant Governmental Authority in accordance with applicable
      law.

     

    (c) The
      Parent Borrower and each Foreign Subsidiary Borrower, as the case may be, shall
      indemnify the Administrative Agent, each Lender and the Issuing Bank, within
      10 Business Days after written demand therefor, for the full amount of any

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    Indemnified
      Taxes or Other Taxes paid by the Administrative Agent, such Lender or the
      Issuing Bank, as the case may be, on or with respect to any payment by or on
      account of any obligation of the Parent Borrower and each Foreign Subsidiary
      Borrower, as the case may be, hereunder or under any other Loan Document
      (including Indemnified Taxes or Other Taxes imposed or asserted on or
      attributable to amounts payable under this Section) and any penalties, interest
      and reasonable expenses arising therefrom or with respect thereto, whether
      or
      not such Indemnified Taxes or Other Taxes were correctly or legally imposed
      or
      asserted by the relevant Governmental Authority. A certificate as to the amount
      of such payment or liability delivered to the Parent Borrower or any Foreign
      Subsidiary Borrower, as the case may be, by a Lender or the Issuing Bank, or
      by
      the Administrative Agent on its own behalf or on behalf of a Lender or the
      Issuing Bank, shall be conclusive absent manifest error.

     

    (d) As
      soon
      as practicable after any payment of Indemnified Taxes or Other Taxes by the
      Parent Borrower or any Foreign Subsidiary Borrower to a Governmental Authority,
      the Parent Borrower or such Foreign Subsidiary Borrower, as the case may be,
      shall deliver to the Administrative Agent the original or a certified copy
      of a
      receipt issued by such Governmental Authority evidencing such payment, a copy
      of
      the return reporting such payment or other evidence of such payment reasonably
      satisfactory to the Administrative Agent.

     

    (e) Any
      Lender that is entitled to an exemption from or reduction of withholding tax
      under the law of the jurisdiction in which the Parent Borrower or any Foreign
      Subsidiary Borrower, as the case may be, is located, or any treaty to which
      such
      jurisdiction is a party, with respect to payments under this Agreement shall
      deliver to the Parent Borrower (on behalf of itself and the Foreign Subsidiary
      Borrowers) (with a copy to the Administrative Agent), at the time or times
      prescribed by applicable law, such properly completed and executed documentation
      prescribed by applicable law or reasonably requested by the Parent Borrower
      (on
      behalf of itself and the Foreign Subsidiary Borrowers) as will permit such
      payments to be made without withholding or at a reduced rate.

     

    (f) If
      the
      Administrative Agent or a Lender (or a transferee) determines, in its sole
      discretion, that it has received a refund of any Taxes or Other Taxes as to
      which it has been indemnified by the Parent Borrower or any Foreign Subsidiary
      Borrower or with respect to which the Parent Borrower (on behalf of itself
      and
      the Foreign Subsidiary Borrowers) has paid additional amounts pursuant to this
      Section 2.17, it shall pay over such refund to the Parent Borrower (but
      only to the extent of indemnity payments made, or additional amounts paid,
      by
      the Parent Borrower or any Foreign Subsidiary Borrower under this
      Section 2.17 with respect to the Taxes or the Other Taxes giving rise to
      such refund), net of all out-of-pocket expenses of the Administrative Agent
      or
      such Lender (or Transferee) and without interest (other than any interest paid
      by the relevant Governmental Authority with respect to such refund);
provided,
      however,
      that
      the Parent Borrower or any Foreign Subsidiary Borrower, upon the request of
      the
      Administrative Agent or such Lender (or Transferee), agrees to repay the amount
      paid over to the Parent Borrower (plus any penalties, interest or other charges
      imposed by the relevant Governmental Authority) to the Administrative Agent
      or
      such 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    Lender
      (or Transferee) in the event the Administrative Agent or such Lender (or
      Transferee) is required to repay such refund to such Governmental Authority.
      Nothing contained in this Section 2.17(f) shall require the Administrative
      Agent or any Lender to make available its tax returns or any other information
      relating to its taxes which it deems confidential to the Parent Borrower or
      any
      other person.

     

    SECTION
      2.18. Payments
      Generally; Pro Rata Treatment; Sharing of Set-offs.
      (a)  The Parent Borrower (on behalf of itself and the Foreign
      Subsidiary Borrowers) shall make each payment required to be made by it
      hereunder or under any other Loan Document (whether of principal, interest,
      fees
      or reimbursement of LC Disbursements, or of amounts payable under Section 2.15,
      2.16 or 2.17, or otherwise) on or before the time expressly required hereunder
      or under such other Loan Document for such payment (or, if no such time is
      expressly required, prior to 12:00 noon, New York City time, or if the
      applicable Loan is a Foreign Currency Loan, London time), on the date when
      due,
      in immediately available funds, without set-off or counterclaim. Any amounts
      received after such time on any date may, in the discretion of the
      Administrative Agent, be deemed to have been received on the next succeeding
      Business Day for purposes of calculating interest thereon. All such payments
      shall be made to the Administrative Agent at its offices at 270 Park Avenue,
      New York, New York (unless otherwise instructed in the case of Foreign
      Currency Loans), except payments to be made directly to the Issuing Bank or
      Swingline Lender as expressly provided herein and except that payments pursuant
      to Sections 2.15, 2.16, 2.17 and 10.03 shall be made directly to the Persons
      entitled thereto and payments pursuant to other Loan Documents shall be made
      to
      the Persons specified therein. The Administrative Agent shall distribute any
      such payments received by it for the account of any other Person to the
      appropriate recipient promptly following receipt thereof. If any payment under
      any Loan Document shall be due on a day that is not a Business Day, the date
      for
      payment shall be extended to the next succeeding Business Day, and, in the
      case
      of any payment accruing interest, interest thereon shall be payable for the
      period of such extension. Subject to Section 9.01, all payments under each
      Loan Document of principal or interest in respect of any Loan or
      LC Disbursement shall be made in the currency of such Loan or
      LC Disbursement; all other payments hereunder and under each other Loan
      Document shall be made in dollars.

     

    (b) If
      at any
      time insufficient funds are received by and available to the Administrative
      Agent to pay fully all amounts of principal, unreimbursed LC Disbursements,
      interest and fees then due hereunder, such funds shall be applied
      (i) first, towards payment of interest and fees then due hereunder, ratably
      among the parties entitled thereto in accordance with the amounts of interest
      and fees then due to such parties, and (ii) second, towards payment of principal
      and unreimbursed LC Disbursements then due hereunder, ratably among the parties
      entitled thereto in accordance with the amounts of principal and unreimbursed
      LC
      Disbursements then due to such parties.

     

    (c) If
      any
      Lender shall, by exercising any right of set-off or counterclaim or otherwise,
      obtain payment in respect of any principal of or interest on any of its
      Revolving Loans, Term Loans or participations in LC Disbursements or

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    Swingline
      Loans resulting in such Lender receiving payment of a greater proportion of
      the
      aggregate amount of its Revolving Loans, Term Loans and participations in LC
      Disbursements and Swingline Loans and accrued interest thereon than the
      proportion received by any other Lender, then the Lender receiving such greater
      proportion shall purchase (for cash at face value) participations in the
      Revolving Loans, Term Loans and participations in LC Disbursements and Swingline
      Loans of other Lenders to the extent necessary so that the benefit of all such
      payments shall be shared by the Lenders ratably in accordance with the aggregate
      amount of principal of and accrued interest on their respective Revolving Loans,
      Term Loans and participations in LC Disbursements and Swingline Loans;
provided
      that (i)
      if any such participations are purchased and all or any portion of the payment
      giving rise thereto is recovered, such participations shall be rescinded and
      the
      purchase price restored to the extent of such recovery, without interest, and
      (ii) the provisions of this paragraph shall not be construed to apply to any
      payment made by the Parent Borrower or any Foreign Subsidiary Borrower pursuant
      to and in accordance with the express terms of this Agreement or any payment
      obtained by a Lender as consideration for the assignment of or sale of a
      participation in any of its Loans or participations in LC Disbursements to
      any
      assignee or participant, other than to the Parent Borrower or any Subsidiary
      or
      Affiliate thereof (as to which the provisions of this paragraph shall apply).
      The Parent Borrower and each Foreign Subsidiary Borrower consents to the
      foregoing and agrees, to the extent it may effectively do so under applicable
      law, that any Lender acquiring a participation pursuant to the foregoing
      arrangements may exercise against the Parent Borrower or any Foreign Subsidiary
      Borrower, as the case may be, rights of set-off and counterclaim with respect
      to
      such participation as fully as if such Lender were a direct creditor of the
      Parent Borrower or such Foreign Subsidiary Borrower in the amount of such
      participation.

     

    (d) Unless
      the Administrative Agent shall have received notice from the Parent Borrower
      (on
      behalf of itself and the Foreign Subsidiary Borrowers) prior to the date on
      which any payment is due to the Administrative Agent for the account of the
      Lenders or the Issuing Bank hereunder that the Parent Borrower or any Foreign
      Subsidiary Borrower, as the case may be, will not make such payment, the
      Administrative Agent may assume that the Parent Borrower or such Foreign
      Subsidiary Borrower, as the case may be, has made such payment on such date
      in
      accordance herewith and may, in reliance upon such assumption, distribute to
      the
      Lenders or the Issuing Bank, as the case may be, the amount due. In such event,
      if the Parent Borrower or such Foreign Subsidiary Borrower, as the case may
      be,
      has not in fact made such payment, then each of the Lenders or the Issuing
      Bank,
      as the case may be, severally agrees to repay to the Administrative Agent
      forthwith on demand the amount so distributed to such Lender or Issuing Bank
      with interest thereon, for each day from and including the date such amount
      is
      distributed to it to but excluding the date of payment to the Administrative
      Agent, at the greater of the Federal Funds Effective Rate and a rate determined
      by the Administrative Agent in accordance with banking industry rules on
      interbank compensation.

     

    (e) If
      any
      Lender shall fail to make any payment required to be made by it pursuant to
      Section 2.04(c), 2.05(d) or (e), 2.06(b), 2.18(d) or 10.03(c), then the
      Administrative Agent may, in its discretion (notwithstanding any contrary
      provision 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    hereof),
      apply any amounts thereafter received by the Administrative Agent for the
      account of such Lender to satisfy such Lender's obligations under such Sections
      until all such unsatisfied obligations are fully paid.

     

    SECTION
      2.19. Mitigation
      Obligations; Replacement of Lenders.
      (a)  If any Lender requests compensation under Section 2.15, or
      if the Parent Borrower or any Foreign Subsidiary Borrower is required to
      pay any additional amount to any Lender or any Governmental Authority for the
      account of any Lender pursuant to Section 2.17, then such Lender shall use
      reasonable efforts to designate a different lending office for funding or
      booking its Loans hereunder or to assign its rights and obligations hereunder
      to
      another of its offices, branches or affiliates, if, in the judgment of such
      Lender, such designation or assignment (i) would eliminate or reduce amounts
      payable pursuant to Section 2.15 or 2.17, as the case may be, in the future
      and
      (ii) would not subject such Lender to any unreimbursed cost or expense and
      would
      not otherwise be disadvantageous to such Lender. The Parent Borrower (on behalf
      of itself and the Foreign Subsidiary Borrowers) hereby agrees to pay all
      reasonable costs and expenses incurred by any Lender in connection with any
      such
      designation or assignment.

     

    (b) If
      any
      Lender requests compensation under Section 2.15, or if the Parent Borrower
      or any Foreign Subsidiary Borrower is required to pay any additional amount
      to
      any Lender or any Governmental Authority for the account of any Lender pursuant
      to Section 2.17, or if any Lender defaults in its obligation to fund Loans
      hereunder, then the Parent Borrower (on behalf of itself and the Foreign
      Subsidiary Borrowers) may, at its sole expense and effort, upon notice to such
      Lender and the Administrative Agent, require such Lender to assign and delegate,
      without recourse (in accordance with and subject to the restrictions contained
      in Section 10.04), all its interests, rights and obligations under this
      Agreement to an assignee selected by the Parent Borrower that shall assume
      such
      obligations (which assignee may be another Lender, if a Lender accepts such
      assignment); provided
      that (i)
      the Parent Borrower (on behalf of itself and the Foreign Subsidiary Borrowers)
      shall have received the prior written consent of the Administrative Agent (and,
      if a Revolving Commitment is being assigned, the Issuing Bank and Swingline
      Lender), which consent shall not unreasonably be withheld, (ii) such Lender
      shall have received payment of an amount equal to the outstanding principal
      of
      its Loans and participations in LC Disbursements and Swingline Loans, accrued
      interest thereon, accrued fees and all other amounts payable to it hereunder,
      from the assignee (to the extent of such outstanding principal and accrued
      interest and fees) or the Parent Borrower and the Foreign Subsidiary Borrowers
      (in the case of all other amounts) and (iii) in the case of any such
      assignment resulting from a claim for compensation under Section 2.15 or
      payments required to be made pursuant to Section 2.17, such assignment will
      result in a material reduction in such compensation or payments. A Lender shall
      not be required to make any such assignment and delegation if, prior thereto,
      as
      a result of a waiver by such Lender or otherwise, the circumstances entitling
      the Parent Borrower or any Foreign Subsidiary Borrower to require such
      assignment and delegation cease to apply.

     

    SECTION
      2.20. Additional
      Reserve Costs.
      (a)  If and so long as any Revolving Lender is required to make
      special deposits with the Bank of England, to 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    maintain
      reserve asset ratios or to pay fees, in each case in respect of such Revolving
      Lender's Foreign Currency Loans, such Revolving Lender may require the relevant
      Foreign Subsidiary Borrower to pay, contemporaneously with each payment of
      interest on each of such Foreign Currency Loans, additional interest on such
      Foreign Currency Loan at a rate per annum equal to the Mandatory Costs Rate
      calculated in accordance with the formula and in the manner set forth in
      Exhibit I hereto.

     

    (b) If
      and so
      long as any Revolving Lender is required to comply with reserve assets,
      liquidity, cash margin or other requirements of any monetary or other authority
      (including any such requirement imposed by the European Central Bank or the
      European System of Central Banks, but excluding requirements reflected in the
      Statutory Reserve Rate or the Mandatory Costs Rate) in respect of any of such
      Revolving Lender's Foreign Currency Loans, such Revolving Lender may require
      the
      relevant Foreign Subsidiary Borrower to pay, contemporaneously with each payment
      of interest on each of such Revolving Lender's Foreign Currency Loans subject
      to
      such requirements, additional interest on such Foreign Currency Loan at a rate
      per annum specified by such Revolving Lender to be the cost to such Revolving
      Lender of complying with such requirements in relation to such Foreign Currency
      Loan.

     

    (c) Any
      additional interest owed pursuant to paragraph (a) or (b) above shall
      be determined by the relevant Revolving Lender, which determination shall be
      conclusive absent manifest error, and notified to the Parent Borrower (on behalf
      of the relevant Foreign Subsidiary Borrower) (with a copy to the Administrative
      Agent)) at least five Business Days before each date on which interest is
      payable for the relevant Foreign Currency Loan, and such additional interest
      so
      notified by such Revolving Lender shall be payable to the Administrative Agent
      for the account of such Revolving Lender on each date on which interest is
      payable for such Foreign Currency Loan.

     

    SECTION
      2.21. Designation
      of Foreign Subsidiary Borrowers.
      The
      Parent Borrower may at any time and from time to time designate any Foreign
      Subsidiary as a Foreign Subsidiary Borrower, by delivery to the Administrative
      Agent of a Foreign Subsidiary Borrowing Agreement executed by such Foreign
      Subsidiary and the Parent Borrower, and upon such delivery such Foreign
      Subsidiary shall for all purposes of this Agreement and the other Loan Documents
      be a Foreign Subsidiary Borrower until the Parent Borrower shall terminate
      such
      designation pursuant to a termination agreement satisfactory to the
      Administrative Agent, whereupon such Foreign Subsidiary shall cease to be a
      Foreign Subsidiary Borrower and a party to this Agreement and any other
      applicable Loan Documents. Notwithstanding the preceding sentence, no such
      termination will become effective as to any Foreign Subsidiary Borrower at
      a
      time when any principal of or interest on any Loan to such Foreign Subsidiary
      Borrower is outstanding. As soon as practicable upon receipt of a Foreign
      Subsidiary Borrowing Agreement, the Administrative Agent shall send a copy
      thereof to each Lender.

     

    SECTION
      2.22. Foreign
      Subsidiary Borrower Costs.
      (a)  If the cost to any Revolving Lender of making or maintaining any
      Foreign Currency Loan to a Foreign Subsidiary Borrower is increased (or the
      amount of any sum received or receivable by any Revolving Lender (or its
      applicable lending office) is reduced) by an 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    amount
      deemed in good faith by such Revolving Lender to be material, by reason of
      the
      fact that such Foreign Subsidiary Borrower is incorporated in, or conducts
      business in, a jurisdiction outside the United States, such Foreign
      Subsidiary Borrower shall indemnify such Revolving Lender for such increased
      cost or reduction within 15 days after demand by such Revolving Lender
      (with a copy to the Administrative Agent). A certificate of such Revolving
      Lender claiming compensation under this paragraph and setting forth the
      additional amount or amounts to be paid to it hereunder (and the basis for
      the
      calculation of such amount or amounts) shall be conclusive in the absence of
      manifest error.

     

    (b) Each
      Revolving Lender will promptly notify the Parent Borrower (on behalf of the
      relevant Foreign Subsidiary Borrower) and the Administrative Agent of any event
      of which it has knowledge that will entitle such Revolving Lender to additional
      interest or payments pursuant to paragraph (a) above, but in any event
      within 45 days after such Revolving Lender obtains actual knowledge
      thereof; provided
      that
      (i) if any Revolving Lender fails to give such notice within 45 days
      after it obtains actual knowledge of such an event, such Revolving Lender shall,
      with respect to compensation payable pursuant to this Section 2.21 in
      respect of any costs resulting from such event, only be entitled to payment
      under this Section 2.21 for costs incurred from and after the date
      45 days prior to the date that such Revolving Lender does give such notice
      and (ii) each Revolving Lender will designate a different applicable lending
      office, if, in the judgment of such Revolving Lender, such designation will
      avoid the need for, or reduce the amount of, such compensation and will not
      be
      otherwise disadvantageous to such Revolving Lender.

     

    

    ARTICLE
      III

     

    Representations
      and Warranties

     

    Each
      of
      Holdings, the Parent Borrower and each Foreign Subsidiary Borrower (as to itself
      only) represents and warrants to the Lenders that:

     

    SECTION
      3.01. Organization;
      Powers.
      Each of
      Holdings, the Parent Borrower and its Subsidiaries (including the Receivables
      Subsidiary) is duly organized, validly existing and in good standing under
      the
      laws of the jurisdiction of its organization, has all requisite power and
      authority to carry on its business as now conducted and, except where the
      failure to do so, individually or in the aggregate, could not reasonably be
      expected to result in a Material Adverse Effect, is qualified to do business
      in,
      and is in good standing in, every jurisdiction where such qualification is
      required.

     

    SECTION
      3.02. Authorization;
      Enforceability.
      The
      Transactions to be entered into by each Loan Party are within such Loan Party's
      powers and have been duly authorized by all necessary action. This Agreement
      has
      been duly executed and delivered by each of Holdings and the Parent Borrower
      and
      constitutes, and each other Loan Document to which any Loan Party is to be
      a
      party, when executed and delivered 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    by
      such
      Loan Party, will constitute, a legal, valid and binding obligation of Holdings,
      the Parent Borrower or such Loan Party (as the case may be), enforceable in
      accordance with its terms, subject to applicable bankruptcy, insolvency,
      reorganization, moratorium or other laws affecting creditors' rights generally
      and subject to general principles of equity, regardless of whether considered
      in
      a proceeding in equity or at law.

     

    SECTION
      3.03. Governmental
      Approvals; No Conflicts.
      The
      Transactions (a) do not require any consent or approval of, registration or
      filing with, or any other action by, any Governmental Authority, except
      (x) such as have been obtained or made and are in full force and effect,
      (y) filings necessary to perfect Liens created under the Loan Documents and
      (z) consents, approvals, registrations, filings or actions the failure of
      which to obtain or perform could not reasonably be expected to result in a
      Material Adverse Effect, (b) will not violate any applicable law or
      regulation or the charter, by-laws or other organizational documents of
      Holdings, the Parent Borrower or any of its Subsidiaries (including the
      Receivables Subsidiary) or any order of any Governmental Authority,
      (c) will not violate or result in a default under any indenture, agreement
      or other instrument binding upon Holdings, the Parent Borrower or any of its
      Subsidiaries (including the Receivables Subsidiary) or its assets, or give
      rise
      to a right thereunder to require any payment to be made by Holdings, the Parent
      Borrower or any of its Subsidiaries (including the Receivables Subsidiary),
      except for violations, defaults or the creation of such rights that could not
      reasonably be expected to result in a Material Adverse Effect, and (d) will
      not result in the creation or imposition of any Lien on any asset of Holdings,
      the Parent Borrower or any of its Subsidiaries (including the Receivables
      Subsidiary), except Liens created under the Loan Documents and Liens permitted
      by Section 6.02.

     

    SECTION
      3.04. Financial
      Condition; No Material Adverse Change.
      (a)  Holdings has heretofore furnished to the Lenders its consolidated
      balance sheet and statements of income, stockholders equity and cash flows
      (i)
      as of and for the fiscal year ended January 2, 2005, reported on by
      KPMG LLP, independent public accountants, and (ii) as of and for the fiscal
      quarter and the portion of the fiscal year ended September 30, 2005,
      certified by its chief financial officer. Such financial statements present
      fairly, in all material respects, the financial position and results of
      operations and cash flows of Holdings and its consolidated Subsidiaries as
      of
      such dates and for such periods in accordance with GAAP, subject to year-end
      audit adjustments and the absence of footnotes in the case of the statements
      referred to in clause (ii) above.

     

    (b) Except
      as
      disclosed in the financial statements referred to above or the notes thereto
      or
      in the Information Memorandum, except for the Disclosed Matters and except
      for
      liabilities arising as a result of the Transactions, after giving effect to
      the
      Transactions, none of Holdings, the Parent Borrower or the Subsidiaries
      (including the Receivables Subsidiary and the Saturn Subsidiary) has, as of
      the
      Restatement Effective Date, any contingent liabilities that would be material
      to
      Holdings, the Parent Borrower and the Subsidiaries (including the Receivables
      Subsidiary and the Saturn Subsidiary), taken as a whole.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    (c) Since
      December 31, 2004, there has been no event, change or occurrence that,
      individually or in the aggregate, has had or could reasonably be expected to
      result in a Material Adverse Effect.

     

    SECTION
      3.05. Properties.
      (a)  Each of Holdings, the Parent Borrower and its Subsidiaries has
      good title to, or valid leasehold interests in, all its real and personal
      property material to its business (including its Mortgaged Properties), except
      for minor defects in title that do not interfere with its ability to conduct
      its
      business as currently conducted or to utilize such properties for their intended
      purposes.

     

    (b) Each
      of
      Holdings, the Parent Borrower and its Subsidiaries owns, or is licensed to
      use,
      all trademarks, tradenames, copyrights, patents and other intellectual property
      material to its business, and the use thereof by Holdings, the Parent Borrower
      and its Subsidiaries does not infringe upon the rights of any other Person,
      except for any such infringements that, individually or in the aggregate, could
      not reasonably be expected to result in a Material Adverse Effect.

     

    (c) As
      of the
      Restatement Effective Date, neither Holdings, the Parent Borrower nor any of
      its
      Subsidiaries has received written notice of any pending or contemplated
      condemnation proceeding affecting any Mortgaged Property or any sale or
      disposition thereof in lieu of condemnation. Neither any Mortgaged Property
      nor
      any interest therein is subject to any right of first refusal, option or other
      contractual right to purchase such Mortgaged Property or interest
      therein.

     

    SECTION
      3.06. Litigation
      and Environmental Matters.
      (a)  There are no actions, suits or proceedings by or before any
      arbitrator or Governmental Authority pending against or, to the knowledge of
      Holdings or the Parent Borrower, threatened against or affecting Holdings,
      the
      Parent Borrower or any of its Subsidiaries (including the Receivables
      Subsidiary) (i) as to which there is a reasonable possibility of an adverse
      determination and that, if adversely determined, could reasonably be expected,
      individually or in the aggregate, to result in a Material Adverse Effect (other
      than the Disclosed Matters) or (ii) that involve any of the Loan Documents
      or the Transactions.

     

    (b) Except
      for the Disclosed Matters and except with respect to any other matters that,
      individually or in the aggregate, could not reasonably be expected to result
      in
      a Material Adverse Effect, neither Holdings, the Parent Borrower nor any of
      its
      Subsidiaries (including the Receivables Subsidiary) (i) has failed to
      comply with any Environmental Law or to obtain, maintain or comply with any
      permit, license or other approval required under any Environmental Law,
      (ii) has become subject to any Environmental Liability, (iii) has
      received notice of any claim with respect to any Environmental Liability or
      (iv)
      knows of any basis for any Environmental Liability.

     

    (c) Since
      the
      date of the Original Credit Agreement, there has been no change in the status
      of
      the Disclosed Matters that, individually or in the aggregate, has resulted
      in,
      or materially increased the likelihood of, a Material Adverse
      Effect.

     

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    SECTION
      3.07. Compliance
      with Laws and Agreements.
      Each of
      Holdings, the Parent Borrower and its Subsidiaries (including the Receivables
      Subsidiary) is in compliance with all laws, regulations and orders of any
      Governmental Authority applicable to it or its property and all indentures,
      agreements and other instruments binding upon it or its property, except where
      the failure to do so, individually or in the aggregate, could not reasonably
      be
      expected to result in a Material Adverse Effect. No Default has occurred and
      is
      continuing.

     

    SECTION
      3.08. Investment
      and Holding Company Status.
      Neither
      Holdings, the Parent Borrower nor any of its Subsidiaries (including the
      Receivables Subsidiary) is (a) an "investment company" as defined in, or
      subject to regulation under, the Investment Company Act of 1940 or (b) a
      "holding company" as defined in, or subject to regulation under, the Public
      Utility Holding Company Act of 1935.

     

    SECTION
      3.09. Taxes.
      Each of
      Holdings, the Parent Borrower and its Subsidiaries (including the Receivables
      Subsidiary) has timely filed or caused to be filed all Tax returns and reports
      required to have been filed and has paid or caused to be paid all Taxes required
      to have been paid by it, except (a) any Taxes that are being contested in
      good faith by appropriate proceedings and for which Holdings, the Parent
      Borrower or such Subsidiary (including the Receivables Subsidiaries), as
      applicable, has set aside on its books adequate reserves or (b) to the
      extent that the failure to do so could not reasonably be expected to result
      in a
      Material Adverse Effect.

     

    SECTION
      3.10. ERISA.
      No ERISA
      Event has occurred or is reasonably expected to occur that, when taken together
      with all other such ERISA Events for which liability is reasonably expected
      to
      occur, could reasonably be expected to result in a Material Adverse Effect.
      As
      of the Recapitalization Date, the present value of all accumulated benefit
      obligations under any one Plan (based on the assumptions used for purposes
      of
      Statement of Financial Accounting Standards No. 87) did not, as of the date
      of the most recent financial statements reflecting such amounts, exceed by
      more
      than $23,000,000 the fair market value of the assets of such Plan, and the
      present value of all accumulated benefit obligations of all underfunded Plans
      (based on the assumptions used for purposes of Statement of Financial Accounting
      Standards No. 87) did not, as of the date of the most recent financial
      statements reflecting such amounts, exceed by more than $40,000,000 the fair
      market value of the assets of all such underfunded Plans.

     

    SECTION
      3.11. Disclosure.
      Each of
      Holdings and the Parent Borrower has disclosed to the Lenders all agreements,
      instruments and corporate or other restrictions to which Holdings, the Parent
      Borrower or any of its Subsidiaries (including the Receivables Subsidiary)
      is
      subject, and all other matters known to any of them, that, individually or
      in
      the aggregate, could reasonably be expected to result in a Material Adverse
      Effect. Neither the Information Memorandum nor any of the other reports,
      financial statements, certificates or other information furnished by or on
      behalf of any Loan Party to the Administrative Agent or any Lender in connection
      with the negotiation of this Agreement or any other Loan Document or delivered
      hereunder or thereunder (as modified or supplemented by other information so
      furnished) contained as of its date any material misstatement of fact or omits
      to state any material fact necessary to make the 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    statements
      therein, in the light of the circumstances under which they were made, not
      misleading; provided
      that,
      with respect to projected financial information, Holdings and the Parent
      Borrower represent only that such information was prepared in good faith based
      upon assumptions believed to be reasonable at the time such projections were
      prepared.

     

    SECTION
      3.12. Subsidiaries.
      Holdings
      does not have any subsidiaries other than the Parent Borrower, the Saturn
      Subsidiary and the Parent Borrower's Subsidiaries. Schedule 3.12 sets forth
      the name of, and the ownership interest of the Parent Borrower in, each
      Subsidiary of the Parent Borrower and identifies each Subsidiary that is a
      Subsidiary Loan Party, in each case as of the Effective Date.

     

    SECTION
      3.13. Insurance.
      As of
      the Effective Date, all premiums due in respect of material insurance policies
      maintained by or on behalf of Holdings, the Parent Borrower and the Subsidiaries
      as of the Effective Date have been paid.

     

    SECTION
      3.14. Labor
      Matters.
      As of
      the Effective Date, there are no strikes, lockouts or slowdowns against
      Holdings, the Parent Borrower or any Subsidiary pending or, to the knowledge
      of
      Holdings or the Parent Borrower, threatened that could reasonably be expected
      to
      have a Material Adverse Effect. All payments due from Holdings, the Parent
      Borrower or any Subsidiary, or for which any claim may be made against Holdings,
      the Parent Borrower or any Subsidiary, on account of wages and employee health
      and welfare insurance and other benefits, have been paid or accrued as a
      liability on the books of Holdings, the Parent Borrower or such Subsidiary.
      The
      consummation of the Transactions will not give rise to any right of termination
      or right of renegotiation on the part of any union under any collective
      bargaining agreement to which Holdings, the Parent Borrower or any Subsidiary
      is
      bound.

     

    SECTION
      3.15. Solvency.
      Immediately after the consummation of the Transactions to occur on the Effective
      Date and immediately following the making of each Loan made on the Effective
      Date and after giving effect to the application of the proceeds of such Loans,
      (a) the fair value of the assets of each Loan Party, at a fair valuation,
      will exceed its debts and liabilities, subordinated, contingent or otherwise;
      (b) the present fair saleable value of the property of each Loan Party will
      be greater than the amount that will be required to pay the probable liability
      of its debts and other liabilities, subordinated, contingent or otherwise,
      as
      such debts and other liabilities become absolute and matured; (c) each Loan
      Party will be able to pay its debts and liabilities, subordinated, contingent
      or
      otherwise, as such debts and liabilities become absolute and matured; and
      (d) the Loan Parties, on a consolidated basis, will not have unreasonably
      small capital with which to conduct the business in which it is engaged as
      such
      business is now conducted and is proposed to be conducted following the
      Effective Date.

     

    SECTION
      3.16. Senior
      Indebtedness.
      To the
      extent any Subordinated Debt is outstanding, the Obligations constitute "Senior
      Indebtedness" under and as defined in the Subordinated Debt
      Documents.

     

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    SECTION
      3.17. Security
      Documents.
      (a)  The Pledge Agreement is effective to create in favor of the
      Collateral Agent, for the benefit of the Secured Parties, a legal, valid and
      enforceable security interest in the Collateral (as defined in the Pledge
      Agreement) and, when such Collateral is delivered to the Collateral Agent and
      for so long as the Collateral Agent remains in possession of such Collateral,
      the security interest created by the Pledge Agreement shall constitute a
      perfected first priority security interest in all right, title and interest
      of
      the pledgor thereunder in such Collateral, in each case prior and superior
      in
      right to any other Person.

     

    (b) The
      Security Agreement is effective to create in favor of the Collateral Agent,
      for
      the benefit of the Secured Parties, a legal, valid and enforceable security
      interest in the Collateral (as defined in the Security Agreement) and, when
      financing statements in appropriate form are filed in the offices specified
      on
      Schedule 6 to the Perfection Certificate, the security interest created by
      the Security Agreement shall constitute a perfected security interest in all
      right, title and interest of the grantors thereunder in such Collateral (other
      than the Intellectual Property (as defined in the Security Agreement)), in
      each
      case prior and superior in right to any other Person, other than with respect
      to
      Liens permitted by Section 6.02.

     

    (c) When
      the
      Security Agreement (or a summary thereof) is filed in the United States
      Patent and Trademark Office and the United States Copyright Office and the
      financing statements referred to in Section 3.17(b) above are appropriately
      filed, the security interest created by the Security Agreement shall constitute
      a perfected security interest in all right, title and interest of the grantors
      thereunder in the Intellectual Property (as defined in the Security Agreement)
      in which a security interest may be perfected by filing, recording or
      registering a security agreement, financing statement or analogous document
      in
      the United States Patent and Trademark Office or the United States
      Copyright Office, as applicable, in each case prior and superior in right to
      any
      other Person (it being understood that subsequent recordings in the
      United States Patent and Trademark Office and the United States
      Copyright Office and subsequent UCC filings may be necessary to perfect a lien
      on registered trademarks, trademark applications and copyrights acquired by
      the
      Loan Parties after the Effective Date), other than with respect to Liens
      permitted by Section 6.02.

     

    (d) The
      Mortgages are effective to create, subject to the exceptions listed in each
      title insurance policy covering such Mortgage, in favor of the Collateral Agent,
      for the benefit of the Secured Parties, a legal, valid and enforceable Lien
      on
      all of the applicable mortgagor's right, title and interest in and to the
      Mortgaged Properties thereunder and the proceeds thereof, and when the Mortgages
      are filed in the offices specified on Schedule 3.17(d), the Lien created by
      each Mortgage shall constitute a perfected Lien on all right, title and interest
      of the applicable mortgagor in such Mortgaged Properties and the proceeds
      thereof, in each case prior and superior in right to any other Person, other
      than with respect to the rights of Persons pursuant to Liens permitted by
      Section 6.02.

     

    (e) Following
      the execution of any Foreign Security Document pursuant to Section 4.03,
      each Foreign Security Document shall be effective to create in 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    78

     

    

    favor
      of
      the Collateral Agent, for the benefit of the Secured Parties, a legal, valid
      and
      enforceable security interest in the applicable collateral covered by such
      Foreign Security Document, and when the actions specified in such Foreign
      Security Document, if any, are completed, the security interest created by
      such
      Foreign Security Document shall constitute a perfected security interest in
      all
      right, title and interest of the grantors thereunder in such collateral to
      the
      full extent possible under the laws of the applicable foreign jurisdiction,
      in
      each case prior and superior in right to any other Person, other than with
      respect to Liens permitted by Section 6.02.

     

    SECTION
      3.18. Federal
      Reserve Regulations.
      (a)  None of Holdings, the Parent Borrower or any of the Subsidiaries
      (including the Receivables Subsidiary) is engaged principally, or as one of
      its
      important activities, in the business of extending credit for the purpose of
      buying or carrying Margin Stock.

     

    (b) No
      part
      of the proceeds of any Loan or any Letter of Credit will be used, whether
      directly or indirectly, and whether immediately, incidentally or
      ultimately, for any purpose that entails a violation of the provisions of
      the Regulations of the Board, including Regulation U or X.

     

     

    ARTICLE
      IV

     

    Conditions

     

    SECTION
      4.01. [intentionally
      omitted].

     

    SECTION
      4.02. Each
      Credit Event.
      The
      obligation of each Lender to make a Loan on the occasion of any Borrowing (other
      than (i) any Revolving Borrowing made pursuant to Section 2.05(d) and
      (ii) any continuation or conversion of a Borrowing pursuant to the terms
      hereof that does not result in the increase of the aggregate principal amount
      of
      the Borrowings then outstanding), and of the Issuing Bank to issue, amend,
      renew
      or extend any Letter of Credit, is subject to receipt of the request therefor
      in
      accordance herewith and to the satisfaction of the following
      conditions:

     

    (a)
      The
      representations and warranties of each Loan Party set forth in the Loan
      Documents shall be true and correct on and as of the date of such Borrowing
      or
      the date of issuance, amendment, renewal or extension of such Letter of Credit,
      as applicable.

     

    (b)
      At
      the time of and immediately after giving effect to such Borrowing or the
      issuance, amendment, renewal or extension of such Letter of Credit, as
      applicable, no Default shall have occurred and be continuing.

     

    Each
      Borrowing and each issuance, amendment, renewal or extension of a Letter of
      Credit shall be deemed to constitute a representation and warranty by Holdings
      and the Parent Borrower on the date thereof as to the matters specified in
      paragraphs (a) and (b) of this Section.

     

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    SECTION
      4.03. Credit
      Events Relating to Foreign Subsidiary Borrowers.
      The
      obligation of each Lender to make Loans to any Foreign Subsidiary Borrower
      is
      subject to the satisfaction of the following conditions:

     

    (a)
      With
      respect to the initial Credit Event relating to such Foreign Subsidiary
      Borrower;

     

    (i)
      the
      Administrative Agent (or its counsel) shall have received such Foreign
      Subsidiary Borrower's Foreign Subsidiary Borrowing Agreement duly executed
      by
      all parties thereto; and

     

    (ii)
      the
      Administrative Agent shall have received such documents (including legal
      opinions) and certificates as the Administrative Agent or its counsel may
      reasonably request relating to the formation, existence and good standing of
      such Foreign Subsidiary Borrower, the authorization of the Foreign Currency
      Borrowings as they relate to such Foreign Subsidiary Borrower and any other
      legal matters relating to such Foreign Subsidiary Borrower or its Foreign
      Subsidiary Borrowing Agreement, all in form and substance satisfactory to the
      Administrative Agent and its counsel.

     

    (b)
      With
      respect to any Credit Event following which (x) such Foreign Subsidiary
      Borrower will have borrowed more than the Dollar Equivalent of $5,000,000 of
      Foreign Currency Borrowings or (y) the aggregate amount of outstanding
      Foreign Currency Borrowings exceeds the Dollar Equivalent of $15,000,000, the
      Administrative Agent shall be satisfied that the Foreign Security Collateral
      and
      Guarantee Agreement shall be satisfied with respect to such Foreign Subsidiary
      Borrower in the case of clause (x) and all Foreign Subsidiary Borrowers in
      the case of clause (y).

     

     

    ARTICLE
      V

     

    Affirmative
      Covenants

     

    Until
      the
      Commitments have expired or been terminated and the principal of and interest
      on
      each Loan and all fees payable hereunder shall have been paid in full and all
      Letters of Credit shall have expired or terminated and all LC Disbursements
      shall have been reimbursed, each of Holdings, the Parent Borrower and each
      Foreign Subsidiary Borrower (as to itself only) covenants and agrees with the
      Lenders that:

     

    SECTION
      5.01. Financial
      Statements and Other Information.
      Holdings
      or the Parent Borrower will furnish to the Administrative Agent and each
      Lender:

     

    (a)
      within 95 days after the end of each fiscal year of Holdings, its audited
      consolidated and unaudited consolidating balance sheet and related statements
      of

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    operations,
      stockholders' equity and cash flows as of the end of and for such year, setting
      forth in each case in comparative form the figures for the previous fiscal
      year,
      all reported on by PriceWaterhouseCoopers LLP or other independent public
      accountants of recognized national standing (without a "going concern" or like
      qualification or exception and without any qualification or exception as to
      the
      scope of such audit) to the effect that such consolidated financial statements
      present fairly in all material respects the financial condition and results
      of
      operations of Holdings and its consolidated subsidiaries on a consolidated
      basis
      in accordance with GAAP consistently applied, other than any change in the
      application of GAAP due solely to Holdings', the Parent Borrower's and the
      Subsidiaries' transition from "recapitalization accounting" to "purchase
      accounting" (it is understood that such financial statements shall also present
      separately financial information with respect to the Receivables Subsidiary
      and
      the Saturn Subsidiary);

     

    (b)
      within 50 days after the end of each of the first three fiscal quarters of
      each fiscal year of Holdings, its consolidated balance sheet and related
      statements of operations, stockholders' equity and cash flows as of the end
      of
      and for such fiscal quarter and the then elapsed portion of the fiscal year,
      setting forth in each case in comparative form the figures for the corresponding
      period or periods of (or, in the case of the balance sheet, as of the end of)
      the previous fiscal year, all certified by one of its Financial Officers as
      presenting fairly in all material respects the financial condition and results
      of operations of Holdings and its consolidated subsidiaries on a consolidated
      basis in accordance with GAAP consistently applied, subject to normal year-end
      audit adjustments and the absence of footnotes (it is understood that such
      financial statements shall also present separately financial information with
      respect to the Receivables Subsidiary and the Saturn Subsidiary);

     

    (c)
      concurrently with any delivery of financial statements under clause (a) or
      (b) above, a certificate of a Financial Officer of Holdings or the Parent
      Borrower (i) certifying as to whether a Default has occurred and, if a
      Default has occurred, specifying the details thereof and any action taken or
      proposed to be taken with respect thereto, (ii) setting forth reasonably
      detailed calculations demonstrating compliance with Sections 6.13, 6.14
      and 6.15, (iii) stating whether any change in GAAP or in the
      application thereof has occurred since the date of Holdings' audited financial
      statements referred to in Section 3.04 and, if any such change has
      occurred, specifying the effect of such change on the financial statements
      accompanying such certificate and (iv) identifying all Subsidiaries existing
      on
      the date of such certificate and indicating, for each such Subsidiary, whether
      such Subsidiary is a Subsidiary Loan Party or a Foreign Subsidiary and whether
      such Subsidiary was formed or acquired since the end of the previous fiscal
      quarter;

     

    (d)
      concurrently with any delivery of financial statements under clause
      (a) above, (i) a certificate of the accounting firm that reported on
      such financial statements stating whether they obtained knowledge during the
      course of their 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    examination
      of such financial statements of any Default (which certificate may be limited
      to
      the extent required by accounting rules or guidelines) and (ii) a
      certificate of a Financial Officer of Holdings or the Parent Borrower
      (A) identifying any parcels of real property or improvements thereto with a
      value exceeding $750,000 that have been acquired by any Loan Party since the
      end
      of the previous fiscal year, (B) identifying any changes of the type
      described in Section 5.03(a) that have not been previously reported by the
      Parent Borrower, (C) identifying any Permitted Acquisitions that have been
      consummated since the end of the previous fiscal year, including the date on
      which each such Permitted Acquisition was consummated and the consideration
      therefor, (D) identifying any Intellectual Property (as defined in the
      Security Agreement) with respect to which a notice is required to be delivered
      under the Security Agreement and has not been previously delivered and
      (E) identifying any Prepayment Events that have occurred since the end of
      the previous fiscal year and setting forth a reasonably detailed calculation
      of
      the Net Proceeds received from Prepayment Events since the end of such previous
      fiscal year;

     

    (e)
      within 30 days from the commencement of each fiscal year of Holdings
      (commencing with the fiscal year ending December 31, 2002), a detailed
      consolidated budget for such fiscal year (including a projected consolidated
      balance sheet and related statements of projected operations and cash flow
      as of
      the end of and for such fiscal year and setting forth the assumptions used
      for
      purposes of preparing such budget) and, promptly when available, any material
      revisions of such budget that have been approved by senior management of
      Holdings;

     

    (f)
      promptly after the same become publicly available, copies of all periodic and
      other reports, proxy statements and other materials filed by Holdings, the
      Parent Borrower or any Subsidiary with the Securities and Exchange Commission,
      or any Governmental Authority succeeding to any or all of the functions of
      said
      Commission, or with any national securities exchange, as the case may be;
      and

     

    (g)
      promptly following any request therefor, such other information regarding the
      operations, business affairs and financial condition of Holdings, the Parent
      Borrower or any Subsidiary, or compliance with the terms of any Loan Document,
      as the Administrative Agent or any Lender may reasonably request.

     

    SECTION
      5.02. Notices
      of Material Events.
      Holdings
      and the Parent Borrower will furnish to the Administrative Agent and each Lender
      prompt written notice of the following:

     

    (a)
      the
      occurrence of any Default;

     

    (b)
      the
      filing or commencement of any action, suit or proceeding by or before any
      arbitrator or Governmental Authority against or affecting Holdings,

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    the
      Parent Borrower or any Affiliate thereof that, if adversely determined, could
      reasonably be expected to result in a Material Adverse Effect;

     

    (c)
      the
      occurrence of any ERISA Event that, alone or together with any other ERISA
      Events that have occurred, could reasonably be expected to result in liability
      of Holdings, the Parent Borrower and its Subsidiaries in an aggregate amount
      exceeding $10,000,000; and

     

    (d)
      any
      other development that results in, or could reasonably be expected to result
      in,
      a Material Adverse Effect.

     

    Each
      notice delivered under this Section shall be accompanied by a statement of
      a
      Financial Officer or other executive officer of the Parent Borrower setting
      forth the details of the event or development requiring such notice and any
      action taken or proposed to be taken with respect thereto.

     

    SECTION
      5.03. Information
      Regarding Collateral.
      (a)  The Parent Borrower will furnish to the Administrative Agent
      prompt written notice of any change (i) in any Loan Party's legal name or in
      any
      trade name used to identify it in the conduct of its business or in the
      ownership of its properties, (ii) in the location of any Loan Party's chief
      executive office, its principal place of business, any office in which it
      maintains books or records relating to Collateral owned by it or any office
      or
      facility at which Collateral owned by it is located (including the establishment
      of any such new office or facility), (iii) in any Loan Party's identity or
      structure or (iv) in any Loan Party's Federal Taxpayer Identification Number.
      The Parent Borrower agrees not to effect or permit any change referred to in
      the
      preceding sentence unless written notice has been delivered to the Collateral
      Agent, together with all applicable information to enable the Administrative
      Agent to make all filings under the Uniform Commercial Code or otherwise that
      are required in order for the Collateral Agent (on behalf of the Secured
      Parties) to continue at all times following such change to have a valid, legal
      and perfected security interest in all the Collateral.

     

    (b) Each
      year, at the time of delivery of annual financial statements with respect to
      the
      preceding fiscal year pursuant to clause (a) of Section 5.01, Holdings (on
      behalf of itself and the other Loan Parties) shall deliver to the Administrative
      Agent a certificate of a Financial Officer of Holdings (i) setting forth the
      information required pursuant to the Perfection Certificate or confirming that
      there has been no change in such information since the date of the Perfection
      Certificate delivered on the Effective Date or the date of the most recent
      certificate delivered pursuant to this Section and (ii) certifying that all
      Uniform Commercial Code financing statements (including fixture filings, as
      applicable) or other appropriate filings, recordings or registrations, including
      all refilings, rerecordings and reregistrations, containing a description of
      the
      Collateral have been filed of record in each governmental, municipal or other
      appropriate office in each jurisdiction identified pursuant to clause (i) above
      to the extent necessary to protect and perfect the security interests under
      the
      Collateral Agreement for a period of not less than 18 months after the date
      of
      such certificate (except as noted therein with respect to any continuation
      statements to be filed within such period).

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    SECTION
      5.04. Existence;
      Conduct of Business. Each
      of
      Holdings, the Parent Borrower and the Foreign Subsidiary Borrowers will, and
      will cause each of the Subsidiaries to, do or cause to be done all things
      necessary to preserve, renew and keep in full force and effect its legal
      existence and the rights, licenses, permits, privileges, franchises, patents,
      copyrights, trademarks and trade names the loss of which would have a Material
      Adverse Effect; provided
      that the
      foregoing shall not prohibit any merger, consolidation, liquidation or
      dissolution permitted under Section 6.03 or disposition by
      Section 6.05. Holdings and the Parent Borrower will cause all the Equity
      Interests of the Foreign Subsidiary Borrowers to be owned, directly or
      indirectly, by the Parent Borrower or any Subsidiary.

     

    SECTION
      5.05. Payment
      of Obligations.
      Each of
      Holdings, the Parent Borrower and the Foreign Subsidiary Borrowers will, and
      will cause each of the Subsidiaries (including the Receivables Subsidiary and
      the Saturn Subsidiary) to, pay its Indebtedness and other obligations, including
      Tax liabilities, before the same shall become delinquent or in default, except
      where (a) the validity or amount thereof is being contested in good faith
      by appropriate proceedings, (b) Holdings, the Parent Borrower the Foreign
      Subsidiary Borrowers or such Subsidiary has set aside on its books adequate
      reserves with respect thereto in accordance with GAAP, (c) such contest
      effectively suspends collection of the contested obligation and the enforcement
      of any Lien securing such obligation and (d) the failure to make payment
      pending such contest could not reasonably be expected to result in a Material
      Adverse Effect.

     

    SECTION
      5.06. Maintenance
      of Properties.
      Each of
      Holdings, the Parent Borrower and the Foreign Subsidiary Borrowers will, and
      will cause each of the Subsidiaries to, keep and maintain all property material
      to the conduct of their business, taken as a whole, in good working order and
      condition, ordinary wear and tear excepted; provided
      that the
      foregoing shall not prohibit any merger, consolidation, liquidation or
      dissolution permitted under Section 6.03 or disposition by
      Section 6.05.

     

    SECTION
      5.07. Insurance.
      Each of
      Holdings, the Parent Borrower and the Foreign Subsidiary Borrowers will, and
      will cause each of the Subsidiaries to, maintain insurance in such amounts
      (with
      no greater risk retention) and against such risks as are customarily maintained
      by companies of established repute engaged in the same or similar businesses
      operating in the same or similar locations, except where the failure to do
      so
      could not reasonably be expected to result in a Material Adverse Effect. Such
      insurance shall be maintained with financially sound and reputable insurance
      companies, except that a portion of such insurance program (not to exceed that
      which is customary in the case of companies engaged in the same or similar
      business or having similar properties similarly situated) may be effected
      through self-insurance, provided
      adequate
      reserves therefor, in accordance with GAAP, are maintained. In addition, each
      of
      Holdings, the Parent Borrower and the Foreign Subsidiary Borrowers will, and
      will cause each of its Subsidiaries to, maintain all insurance required to
      be
      maintained pursuant to the Security Documents. The Parent Borrower will furnish
      to the Lenders, upon request of the Administrative Agent, information in
      reasonable detail as to the insurance so maintained. All insurance policies
      or
      certificates (or certified copies thereof) with respect to such
      insurance shall be endorsed to the Collateral Agent's reasonable
      satisfaction for 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    the
      benefit of the Lenders (including, without limitation, by naming the Collateral
      Agent as loss payee or additional insured, as appropriate).

     

    SECTION
      5.08. Casualty
      and Condemnation.
      The
      Parent Borrower (a) will furnish to the Administrative Agent and the
      Lenders prompt written notice of casualty or other insured damage to any
      material portion of any Collateral having a book value or fair market value
      of
      $1,000,000 or more or the commencement of any action or proceeding for the
      taking of any Collateral having a book value or fair market value of $1,000,000
      or more or any part thereof or interest therein under power of eminent domain
      or
      by condemnation or similar proceeding and (b) will ensure that the Net
      Proceeds of any such event (whether in the form of insurance proceeds,
      condemnation awards or otherwise) are collected and applied in accordance with
      the applicable provisions of this Agreement and the Security
      Documents.

     

    SECTION
      5.09. Books
      and Records; Inspection and Audit Rights.
      Each of
      Holdings, the Parent Borrower and the Foreign Subsidiary Borrowers will, and
      will cause each of the Subsidiaries to, keep proper books of record and account
      in which full, true and correct entries are made of all dealings and
      transactions in relation to its business and activities. Each of Holdings,
      the
      Parent Borrower and the Foreign Subsidiary Borrowers will, and will cause each
      of the Subsidiaries to, permit any representatives designated by the
      Administrative Agent or any Lender, upon reasonable prior notice, to visit
      and
      inspect its properties, to examine and make extracts from its books and records,
      and to discuss its affairs, finances and condition with its officers and
      independent accountants, all at such reasonable times and as often as reasonably
      requested.

     

    SECTION
      5.10. Compliance
      with Laws.
      Each of
      Holdings, the Parent Borrower and the Foreign Subsidiary Borrowers will, and
      will cause each of the Subsidiaries to, comply with all laws, rules, regulations
      and orders of any Governmental Authority applicable to it or its property,
      except where the failure to do so, individually or in the aggregate, could
      not
      reasonably be expected to result in a Material Adverse Effect.

     

    SECTION
      5.11. Use
      of
      Proceeds and Letters of Credit.
      The
      Parent Borrower will use on the Restatement Effective Date the proceeds from
      the
      Tranche D-2 Term Loans to repay not less than $25,000,000 of Tranche D-1 Term
      Loans. The Parent Borrower may use any remaining available proceeds from the
      Tranche D-2 Term Loans to reduce Revolving Borrowings or otherwise to replace
      liquidity under the Permitted Receivables Documents reduced by reason of the
      North American Forging Sale in accordance with past practices or, to the extent
      that the North American Forging Sale has not occurred, for general corporate
      purposes. The proceeds of the Revolving Loans and Swingline Loans will be used,
      subject to Sections 5.15 and 6.12, only for general corporate purposes and
      to the extent permitted by Section 6.01(a)(i), Permitted Acquisitions. No
      part of the proceeds of any Loan will be used, whether directly or indirectly,
      for any purpose that entails a violation of any of the Regulations of the Board,
      including Regulations T, U and X.

     

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    SECTION
      5.12. Additional
      Subsidiaries.
      If any
      additional Subsidiary is formed or acquired after the Effective Date, the Parent
      Borrower will, within five Business Days after such Subsidiary is formed or
      acquired, notify the Administrative Agent and the Lenders thereof and, within
      five Business Days after such Subsidiary is formed or acquired, cause the
      Collateral and Guarantee Requirement to be satisfied with respect to any Equity
      Interest in or Indebtedness of such Subsidiary owned by or on behalf of any
      Loan
      Party.

     

    SECTION
      5.13. Further
      Assurances.
      (a)  Each of Holdings, the Parent Borrower and the Foreign Subsidiary
      Borrowers will, and will cause each Subsidiary Loan Party to, execute any and
      all further documents, financing statements, agreements and instruments, and
      take all such further actions (including the filing and recording of financing
      statements, fixture filings, mortgages, deeds of trust, landlord waivers and
      other documents), which may be required under any applicable law, or which
      the
      Administrative Agent or the Required Lenders may reasonably request, to cause
      the Collateral and Guarantee Requirement to be and remain satisfied, all at
      the
      expense of the Loan Parties. Holdings, the Parent Borrower and the Foreign
      Subsidiary Borrowers also agree to provide to the Administrative Agent, from
      time to time upon request, evidence reasonably satisfactory to the
      Administrative Agent as to the perfection and priority of the Liens created
      or
      intended to be created by the Security Documents.

     

    (b) If
      any
      assets (including any real property or improvements thereto or any interest
      therein) having a book value or fair market value of $1,000,000 or more in
      the
      aggregate are acquired by the Parent Borrower or any Subsidiary Loan Party
      after
      the Effective Date or through the acquisition of a Subsidiary Loan Party under
      Section 5.12 (other than, in each case, assets constituting Collateral
      under the Security Agreement or the Pledge Agreement that become subject to
      the
      Lien of the Security Agreement or the Pledge Agreement upon acquisition
      thereof), the Parent Borrower or, if applicable, the relevant Foreign Subsidiary
      Borrower will notify the Administrative Agent and the Lenders thereof, and,
      if
      reasonably requested by the Administrative Agent or the Required Lenders, the
      Parent Borrower will cause such assets to be subjected to a Lien securing the
      Obligations and will take, and cause the Subsidiary Loan Parties to take, such
      actions as shall be necessary or reasonably requested by the Administrative
      Agent to grant and perfect such Liens, including actions described in
      paragraph (a) of this Section, all at the expense of the Loan
      Parties.

     

    SECTION
      5.14. [intentionally
      omitted].

     

    SECTION
      5.15. Available
      Funds; Additional Equity.
      (a)  Promptly following the consummation of the TriMas Transaction,
      the Parent Borrower shall deposit $205,000,000 of the TriMas Specified Proceeds
      in an interest bearing money market account with the Administrative Agent.
      The
      proceeds of such account shall be distributed to the Parent Borrower in order
      to
      enable the Parent Borrower to (i) repurchase, redeem, repay, or otherwise
      retire the Convertible Debentures within 90 days of the consummation of the
      TriMas Transaction or deliver an irrevocable notice of redemption and deposit
      such proceeds to the trustee thereunder within such 90-day 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    period
      or
      (ii) thereafter, to satisfy its obligations under the last sentence of
      Section 2.11(d)(2).

     

    (b) Until
      the
      date that the Convertible Debentures have been irrevocably repurchased,
      redeemed, repaid or otherwise retired in full, the Parent Borrower will
      designate as available for the repurchase, redemption, repayment or retirement
      of Convertible Debentures an amount of unused Revolving Commitments equal to
      the
      Available Funds Reserve Amount, less the amount of cash in the Debenture
      Account.

     

    SECTION
      5.16. North
      American Forging Sale.
      Within
      60 days following the completion of the North American Forging Sale, the Parent
      Borrower shall use the Net Proceeds from the North American Forging Sale to
      terminate obligations in respect of operating leases and acquire related real
      property subject to such leases using an aggregate amount of not less than
      $45,000,000; provided,
      that
      (a) the Parent Borrower shall satisfy the Collateral and Guarantee Requirement
      with respect to the property subject to operating leases terminated in
      accordance with this Section 5.16 within 60 days of such termination, (b) if
      the
      Parent Borrower is unable to use the Net Proceeds from the North American
      Forging Sale to terminate obligations in respect of operating leases and acquire
      related real property subject to such leases using an aggregate amount of
      $45,000,000 within 60 days following the completion of the North American
      Forging Sale, any shortfall of application of the Net Proceeds from the North
      American Forging Sale may be cured by using the Net Proceeds from the North
      American Forging Sale to prepay Tranche D Term Loan Borrowings pursuant to
      Section 2.11(a) in an aggregate principal amount equal to such shortfall on
      or before the 60th day following the completion of the North American
      Forging Sale and (c) any Net Proceeds of the North American Forging Sale not
      applied in accordance with clauses (a) and (b) above shall be used to reduce
      Revolving Borrowings and/or otherwise replace liquidity under the Permitted
      Receivables Financing reduced by reason of the North American Forging Sale
      in
      accordance with past practices.

     

     

    ARTICLE
      VI

     

    Negative
      Covenants

     

    Until
      the
      Commitments have expired or terminated and the principal of and interest on
      each
      Loan and all fees payable hereunder have been paid in full and all Letters
      of
      Credit have expired or terminated and all LC Disbursements shall have been
      reimbursed, each of Holdings, the Parent Borrower and each Foreign Subsidiary
      Borrower (as to itself only) covenants and agrees with the Lenders
      that:

     

    SECTION
      6.01. Indebtedness;
      Certain Equity Securities.
      (a)  None of Holdings, the Parent Borrower or any Foreign Subsidiary
      Borrower will, nor will they permit any Subsidiary to, create, incur, assume
      or
      permit to exist any Indebtedness, except:

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    (i) 
      Indebtedness created under the Loan Documents and Indebtedness not exceeding
      $20,000,000 incurred outside the United States that are supported by Letters
      of
      Credit; provided
      that
      (x)(A) Revolving Loans may only be used to (1) finance a Permitted
      Acquisition (other than the New Castle Acquisition) if, in addition to the
      satisfaction of all other requirements necessary to effect such Permitted
      Acquisition set forth herein, after giving effect to such Permitted Acquisition
      (and any related incurrence or repayment of Indebtedness), the Senior Leverage
      Ratio is less than 2.00 to 1.00 and the amount of Revolving Commitments
      available for general corporate purposes (other than Permitted Acquisitions)
      at
      such time shall be at least $100,000,000 and (2) finance the New Castle
      Acquisition to the extent permitted under the defined term "New Castle
      Acquisition" and (B) the amount of Revolving Loans used to finance
      Permitted Acquisitions (other than the New Castle Acquisition) outstanding
      at
      any time shall not exceed $50,000,000 less the amount of Permitted Receivables
      Financing outstanding under Section 6.01(a)(ii) to finance Permitted
      Acquisitions and (y) until the Convertible Debentures have been irrevocably
      repurchased, redeemed, repaid or otherwise retired in full, Revolving Loans
      outstanding may not exceed the aggregate Revolving Commitments less the amount
      designated as available for the repurchase, redemption, repayment or retirement
      of Convertible Debentures pursuant to Section 5.15(b);

     

    (ii) 
      the Permitted Receivables Financing; provided
      that
      (x) the Permitted Receivables Financing may only be used to finance a
      Permitted Acquisition (other than the New Castle Acquisition) if, in addition
      to
      the satisfaction of all other requirements necessary to effect such Permitted
      Acquisition set forth herein, after giving effect to such Permitted Acquisition
      (and any related incurrence or repayment of Indebtedness), the Senior Leverage
      Ratio is less than 2.00 to 1.00 and the amount of Revolving Commitments
      available for general corporate purposes (other than Permitted Acquisitions)
      at
      such time shall be at least $100,000,000 and (y) the amount of Permitted
      Receivables Financing used to finance Permitted Acquisitions (other than the
      New
      Castle Acquisition) outstanding at any one time shall not exceed $50,000,000
      less the amount of Revolving Loans outstanding under Section 6.01(a)(i) to
      finance Permitted Acquisitions;

     

    (iii) 
      [intentionally omitted];

     

    (iv) 
      Indebtedness existing on the date hereof and set forth in Schedule 6.01 to
      the Original Credit Agreement and extensions, renewals and replacements of
      any
      such Indebtedness that do not increase the outstanding principal amount as
      specified on such Schedule 6.01 or result in an earlier maturity date or
      decreased weighted average life thereof;

     

    (v) 
      the Convertible Debentures;

     

    (vi) 
      the Existing Subordinated Notes;

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    (vii) 
      the Permitted Subordinated Notes and the Permitted Senior Notes; provided
      that
      (x) Permitted Subordinated Notes may only be used for the repayment of
      Revolving Borrowings and obligations arising in respect of the Permitted
      Receivables Financing if, after giving effect to the incurrence of such
      Permitted Subordinated Notes, the Senior Leverage Ratio is less than 2.75 to
      1.00 and (y) the aggregate amount of proceeds of Permitted Subordinated
      Notes used for the repayment of Revolving Borrowings and obligations arising
      in
      respect of the Permitted Receivables Financing may not exceed
      $100,000,000;

     

    (viii) 
      Indebtedness of the Parent Borrower to any Subsidiary and of any Subsidiary
      to
      the Parent Borrower or any other Subsidiary; provided
      that
      Indebtedness of any Subsidiary that is not a Domestic Loan Party to the Parent
      Borrower or any Subsidiary Loan Party shall be subject to
      Section 6.04;

     

    (ix) 
      Guarantees by the Parent Borrower of Indebtedness of any Subsidiary and by
      any
      Subsidiary of Indebtedness of the Parent Borrower or any other Subsidiary;
      provided
      that (a)
      Guarantees by the Parent Borrower or any Subsidiary Loan Party of Indebtedness
      of any Subsidiary that is not a Domestic Loan Party shall be subject to Section
      6.04 and (b) this clause (ix) shall not apply to Guarantees of the Existing
      Subordinated Notes, Permitted Subordinated Notes, the Permitted Senior Notes
      or
      the TriMas Notes;

     

    (x) 
      Guarantees by Holdings, the Parent Borrower or any Subsidiary, as the case
      may
      be, in respect of the Existing Subordinated Notes, Permitted Subordinated Notes
      and the Permitted Senior Notes; provided
      that
      none of Holdings, the Parent Borrower or any Subsidiary, as the case may be,
      shall Guarantee the Existing Subordinated Notes, the Permitted Subordinated
      Notes or the Permitted Senior Notes unless (A) it also has Guaranteed the
      Obligations pursuant to the Guarantee Agreement and (B) such Guarantee of
      the Existing Subordinated Notes or the Permitted Subordinated Notes is
      subordinated to such Guarantee of the Obligations on terms no less favorable
      to
      the Lenders than the subordination provisions of the Existing Subordinated
      Notes;

     

    (xi) 
      Indebtedness of the Parent Borrower or any Subsidiary incurred to finance the
      acquisition, construction or improvement of any fixed or capital assets,
      including Capital Lease Obligations and any Indebtedness assumed in connection
      with the acquisition of any such assets or secured by a Lien on any such assets
      prior to the acquisition thereof, and extensions, renewals and replacements
      of
      any such Indebtedness that do not increase the outstanding principal amount
      thereof or result in an earlier maturity date or decreased weighted average
      life
      thereof; provided
      that
      (A) such Indebtedness is incurred prior to or within 180 days after
      such acquisition or the completion of such construction or improvement and
      (B) the aggregate principal amount of Indebtedness permitted by this
      clause (xi) shall not exceed $50,000,000 at any time
      outstanding;

     

    (xii) 
      Indebtedness arising as a result of an Acquisition Lease Financing;

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    89

     

    (xiii)
      Indebtedness of any Person that becomes a Subsidiary after the date hereof;
      provided
      that
      (A) such Indebtedness exists at the time such Person becomes a Subsidiary
      and is not created in contemplation of or in connection with such Person
      becoming a Subsidiary and (B) the aggregate principal amount of
      Indebtedness permitted by this clause (xiii) shall not exceed $25,000,000
      at any time outstanding, less the liquidation value of any outstanding Assumed
      Preferred Stock;

     

    (xiv)
      Indebtedness of Holdings, the Parent Borrower or any Subsidiary in respect
      of
      workers' compensation claims, self-insurance obligations, performance bonds,
      surety appeal or similar bonds and completion guarantees provided by Holdings,
      the Parent Borrower and the Subsidiaries in the ordinary course of their
      business; and

     

    (xv)
      other unsecured Indebtedness of Holdings, the Parent Borrower or any Subsidiary
      in an aggregate principal amount not exceeding $20,000,000 at any time
      outstanding, less the liquidation value of any applicable Qualified Holdings
      Preferred Stock issued and outstanding pursuant to clause (b) of the
      definition of Qualified Holdings Preferred Stock.

     

    (b) None
      of
      Holdings, the Parent Borrower or any Foreign Subsidiary Borrower will, nor
      will
      they permit any Subsidiary to, issue any preferred stock or other preferred
      Equity Interests, except (i) Holdings Preferred Stock, (ii) Qualified
      Holdings Preferred Stock, (iii) Assumed Preferred Stock and
      (iv) preferred stock or preferred Equity Interests held by Holdings, the
      Parent Borrower or any Subsidiary.

     

    SECTION
      6.02. Liens.
      None of
      Holdings, the Parent Borrower or any Foreign Subsidiary Borrower will, nor
      will
      they permit any Subsidiary to, create, incur, assume or permit to exist any
      Lien
      on any property or asset now owned or hereafter acquired by it, or assign or
      sell any income or revenues (including accounts receivable) or rights in respect
      of any thereof, except:

     

    (a)
      Liens
      created under the Loan Documents;

     

    (b)
      Permitted Encumbrances;

     

    (c)
      (i) Liens in respect of the Permitted Receivables Financing and the Foreign
      Factoring Arrangement, (ii) second priority Liens in respect of the
      Permitted Senior Notes, so long as the trustee or agent thereunder has entered
      into the Intercreditor Agreement and (iii) Liens in respect of the New Castle
      Sale and Leaseback as contemplated in the definition of "New Castle Sale and
      Leaseback";

     

    (d)
      any
      Lien on any property or asset of the Parent Borrower or any Subsidiary existing
      on the date hereof and set forth in Schedule 6.02 to the Original Credit
      Agreement; provided
      that (i)
      such Lien shall not apply to any other property or asset of the Parent Borrower
      or any Subsidiary and (ii) such Lien shall secure only those obligations which
      it secures on the date hereof and 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    extensions,
      renewals and replacements thereof that do not increase the outstanding principal
      amount thereof;

     

    (e)
      any
      Lien existing on any property or asset prior to the acquisition thereof by
      the
      Parent Borrower or any Subsidiary or existing on any property or asset of any
      Person that becomes a Subsidiary after the date hereof prior to the time such
      Person becomes a Subsidiary; provided
      that
      (A) such Lien is not created in contemplation of or in connection with such
      acquisition or such Person becoming a Subsidiary , as the case may be,
      (B) such Lien shall not apply to any other property or assets of the Parent
      Borrower or any Subsidiary and (C) such Lien shall secure only those
      obligations which it secures on the date of such acquisition or the date such
      Person becomes a Subsidiary, as the case may be;

     

    (f)
      Liens
      on fixed or capital assets acquired, constructed or improved by, or in respect
      of Capital Lease Obligations of, the Parent Borrower or any Subsidiary;
provided
      that
      (A) such security interests secure Indebtedness permitted by
      clause (xi) of Section 6.01(a), (B) such security interests and
      the Indebtedness secured thereby are incurred prior to or within 180 days
      after such acquisition or the completion of such construction or improvement,
      (C) the Indebtedness secured thereby does not exceed the cost of acquiring,
      constructing or improving such fixed or capital assets and (D) such
      security interests shall not apply to any other property or assets of the Parent
      Borrower or any Subsidiary;

     

    (g)
      Liens, with respect to any Mortgaged Property, described in Schedule B-2 of
      the
      title policy covering such Mortgaged Property;

     

    (h)
      other
      Liens securing liabilities permitted hereunder in an aggregate amount not
      exceeding (i) in respect of consensual Liens, $15,000,000 and (ii) in
      respect of all such Liens, $20,000,000, in each case at any time outstanding;
      and

     

    (i)
      Liens
      on equipment with an orderly liquidation value of not more than $13,000,000
      securing obligations under leases expressly permitted under Section 6.06(b)(ii);
      provided
      that,
      with respect to each such lease, such equipment and its aggregate orderly
      liquidation value shall be specified on a schedule delivered to the
      Administrative Agent by the Parent Borrower no later than three Business Days
      prior to the Parent Borrower's or any Subsidiary's entering into such
      lease.

     

    SECTION
      6.03. Fundamental
      Changes.
      (a)  None of Holdings, the Parent Borrower or any Foreign Subsidiary
      Borrower will, nor will they permit any Subsidiary to, merge into or consolidate
      with any other Person, or permit any other Person to merge into or consolidate
      with it, or liquidate or dissolve, except that, if at the time thereof and
      immediately after giving effect thereto no Default shall have occurred and
      be
      continuing (i) any Subsidiary may merge into the Parent Borrower in a
      transaction in which the Parent Borrower is the surviving corporation,
      (ii) any Subsidiary may merge into any Subsidiary in a transaction in which
      the surviving entity is a Subsidiary and (if any party to such merger is a
      Subsidiary Loan Party) is a Subsidiary Loan Party (provided
      that,
      with respect to any such mergers involving the Foreign Subsidiary 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    Borrower,
      the surviving entity of such mergers shall be a Subsidiary Borrower or a Foreign
      Subsidiary Borrower, as the case may be) and (iii) any Subsidiary (other
      than a Subsidiary Loan Party) may liquidate or dissolve if the Parent Borrower
      determines in good faith that such liquidation or dissolution is in the best
      interests of the Parent Borrower and is not materially disadvantageous to the
      Lenders; provided
      that any
      such merger involving a Person that is not a wholly owned Subsidiary immediately
      prior to such merger shall not be permitted unless also permitted by
      Section 6.04.

     

    (b) The
      Parent Borrower will not, and will not permit any of its Subsidiaries to, engage
      to any material extent in any business other than businesses of the type
      conducted by the Parent Borrower and its Subsidiaries on the date of execution
      of this Agreement and businesses reasonably related thereto.

     

    (c) Holdings
      will not engage in any business or activity other than (i) the ownership of
      all the outstanding shares of capital stock of the Parent Borrower and the
      Saturn Subsidiary, (ii) performing its obligations in respect of the
      Restricted Stock Award, (iii) performing its obligations (A) under the
      Loan Documents, (B) as co-obligor with the Parent Borrower in respect of
      the Convertible Debentures and (C) under the Permitted Receivables
      Financing, (iv) activities incidental thereto and to Holdings' existence,
      (v) activities related to the performance of all its obligations under the
      Recapitalization Agreement and in respect of the Transactions, (vi) performing
      its obligations under guarantees in respect of sale and leaseback transactions
      permitted by Section 6.06 and (vii) other activities (including the incurrence
      of Indebtedness and the issuance of its Equity Interests) that are permitted
      by
      this Agreement. Holdings will not own or acquire any assets (other than shares
      of capital stock of the Parent Borrower and the Saturn Subsidiary, any
      immaterial assets not subject to the Asset Dropdown, cash and Permitted
      Investments) or incur any liabilities (other than liabilities imposed by law,
      including tax liabilities, liabilities related to its existence and permitted
      business and activities specified in the immediately preceding
      sentence).

     

    (d) The
      Saturn Subsidiary will not engage in any business or business activity other
      than (i) holding Equity Interests in Saturn held on the date of the
      execution of this Agreement and any property received in respect thereof,
      (ii) performing its obligations in respect of the Saturn Sale and the
      Saturn Proceeds Distribution, (iii) activities permitted by its certificate
      of incorporation and (iv) activities incidental thereto and to the Saturn
      Subsidiary's existence. The Saturn Subsidiary will not own or acquire any assets
      (other than such equity investments in Saturn) or incur any liabilities (other
      than liabilities imposed by law, including tax liabilities, and other
      liabilities related to its existence and permitted business and activities
      specified in the immediately preceding sentence).

     

    (e) The
      Receivables Subsidiary will not engage in any business or business activity
      other than the activities related to the Permitted Receivables Financing and
      its
      existence. The Receivables Subsidiary will not own or acquire any assets (other
      than the receivables subject to the Permitted Receivables Financing) or incur
      any liabilities (other than the liabilities imposed by law including tax
      liabilities, and other liabilities related to its existence and permitted
      business and activities specified in the 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    immediately
      preceding sentence, including liabilities arising under the Permitted
      Receivables Financing).

     

    SECTION
      6.04. Investments,
      Loans, Advances, Guarantees and Acquisitions.
      None of
      the Parent Borrower, any Subsidiary Loan Party or any Foreign Subsidiary
      Borrower will, nor will they permit any Subsidiary to, purchase, hold or acquire
      (including pursuant to any merger with any Person that was not a wholly owned
      Subsidiary prior to such merger) any Equity Interests in or evidences of
      indebtedness or other securities (including any option, warrant or other right
      to acquire any of the foregoing) of, make or permit to exist any loans or
      advances to, Guarantee any obligations of, or make or permit to exist any
      investment or any other interest in, any other Person, or purchase or otherwise
      acquire (in one transaction or a series of transactions) any assets of any
      other
      Person constituting a business unit, except:

     

    (a)
      Permitted Investments;

     

    (b)
      investments existing on the date hereof and set forth on Schedule 6.04 to the
      Original Credit Agreement and investments in TriMas and its subsidiaries
      existing immediately after the consummation of the TriMas
      Transaction;

     

    (c)
      Permitted Acquisitions;

     

    (d)
      investments by the Parent Borrower and the Subsidiaries in Equity Interests
      in
      their respective Subsidiaries that exist immediately prior to any applicable
      transaction; provided
      that (i)
      any such Equity Interests held by a Loan Party shall be pledged pursuant to
      the
      Pledge Agreement or any applicable Foreign Security Documents, as the case
      may
      be, to the extent required by this Agreement and (ii) the aggregate amount
      of
      investments (excluding any such investments, loans, advances and Guaranties
      to
      such Subsidiaries that are assumed and exist on the date any Permitted
      Acquisition is consummated and that are not made, incurred or created in
      contemplation of or in connection with such Permitted Acquisition) by Loan
      Parties in, and loans and advances by Loan Parties to, and Guarantees by Loan
      Parties of Indebtedness of, Subsidiaries that are not Domestic Loan Parties
      made
      after the Effective Date shall not exceed 5% of Holdings' consolidated total
      assets determined in accordance with GAAP at any time outstanding;

     

    (e)
      loans
      or advances made by the Parent Borrower to any Subsidiary and made by any
      Subsidiary to the Parent Borrower or any other Subsidiary; provided
      that (i)
      any such loans and advances made by a Loan Party shall be evidenced by a
      promissory note pledged pursuant to the Pledge Agreement and (ii) the amount
      of
      such loans and advances made by Loan Parties to Subsidiaries that are not Loan
      Parties shall be subject to the limitation set forth in clause (d)
      above;

     

    (f)
      Guarantees permitted by Section 6.01(a)(x);

     

    (g)
      investments arising as a result of the Permitted Receivables
      Financing;

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    (h)
      investments constituting permitted Capital Expenditures under
      Section 6.15;

     

    (i)
      investments received in connection with the bankruptcy or reorganization of,
      or
      settlement of delinquent accounts and disputes with, customers and suppliers,
      in
      each case in the ordinary course of business;

     

    (j)
      any
      investments in or loans to any other Person received as noncash consideration
      for sales, transfers, leases and other dispositions permitted by Section
      6.05;

     

    (k)
      Guarantees by the Parent Borrower and the Subsidiaries of leases entered into
      by
      any Subsidiary as lessee; provided
      that the
      amount of such Guarantees made by Loan Parties to Subsidiaries that are not
      Loan
      Parties shall be subject to the limitation set forth in clause (d)
      above;

     

    (l)
      extensions of credit in the nature of accounts receivable or notes receivable
      in
      the ordinary course of business;

     

    (m)
      loans
      or advances to employees made in the ordinary course of business consistent
      with
      prudent business practice and not exceeding $5,000,000 in the aggregate
      outstanding at any one time;

     

    (n)
      investments in the form of Hedging Agreements permitted under Section
      6.07;

     

    (o)
      investments by the Parent Borrower or any Subsidiary in (i) the capital stock
      of
      a Receivables Subsidiary and (ii) other interests in a Receivables Subsidiary,
      in each case to the extent required by the terms of the Permitted Receivables
      Financing;

     

    (p)
      payroll, travel and similar advances to cover matters that are expected at
      the
      time of such advances ultimately to be treated as expenses for accounting
      purposes and that are made in the ordinary course of business; and

     

    (q)
      investments, loans or advances in addition to those permitted by
      clauses (a) through (p) above not exceeding in the aggregate
      $25,000,000 at any time outstanding.

     

    SECTION
      6.05. Asset
      Sales.
      None of
      Holdings, the Parent Borrower or any Foreign Subsidiary Borrower will, nor
      will
      they permit any Subsidiary to, sell, transfer, lease or otherwise dispose of
      any
      asset, including any Equity Interest owned by it, nor will they permit any
      Subsidiary to issue any additional Equity Interest in such Subsidiary,
      except:

     

    (a)
      sales, transfers, leases and other dispositions of inventory, used or surplus
      equipment, Permitted Investments and Investments referred to in Section 6.04(i)
      in the ordinary course of business;

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    (b)
      sales, transfers and dispositions to the Parent Borrower or a Subsidiary;
provided
      that any
      such sales, transfers or dispositions involving a Subsidiary that is not a
      Domestic Loan Party shall be made in compliance with
      Section 6.09;

     

    (c)
      the
      Saturn Sale or the disposition of Equity Interests in the Saturn Subsidiary
      in
      lieu thereof;

     

    (d)
      sales
      of accounts receivables and related assets pursuant to the Permitted Receivables
      Financing;

     

    (e)
      the
      creation of Liens permitted by Section 6.02 and dispositions as a result
      thereof;

     

    (f)
      (i)
      sales or transfers that are permitted sale and leaseback transactions pursuant
      to Section 6.06(a) and (b), (ii) sales and transfers pursuant to the
      New Castle Sale and Leaseback and Ramos Sale and Leaseback, and (iii) sales
      and transfers of the TriMas Interest;

     

    (g)
      sales
      and transfers that constitute part of an Acquisition Lease
      Financing;

     

    (h)
      Restricted Payments permitted by Section 6.08;

     

    (i)
      transfers and dispositions constituting investments permitted under Section
      6.04;

     

    (j)
      sales, transfers and other dispositions of property identified on Schedule
      6.05
      to the Original Credit Agreement;

     

    (k)
      sales, transfers and other dispositions of assets (other than Equity Interests
      in a Subsidiary) that are not permitted by any other clause of this Section;
      provided
      that the
      aggregate fair market value of all assets sold, transferred or otherwise
      disposed of in reliance upon this clause (k) shall not exceed $15,000,000 during
      any fiscal year of the Parent Borrower; provided
      that
      such amount shall be increased, in respect of the fiscal year ending on
      December 31, 2002, and each fiscal year thereafter by an amount equal to
      the total unused amount of such permitted sales, transfers and other
      dispositions for the immediately preceding fiscal year (without giving effect
      to
      the amount of any unused permitted sales, transfers and other dispositions
      that
      were carried forward to such preceding fiscal year);

     

    (l)
      sales
      of accounts receivable and related assets pursuant to a Foreign Factoring
      Arrangement; and

     

    (m)
      the
      North American Forging Sale.

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    provided
      that (x)
      all sales, transfers, leases and other dispositions permitted hereby (other
      than
      those permitted by clause (b) above) shall be made for fair value and (y)
      all sales, transfers, leases and other dispositions permitted by
      clauses (j) and (k) above shall be for at least 85% cash
      consideration.

     

    SECTION
      6.06. Sale
      and Leaseback Transactions.
      From and
      after the Restatement Effective Date, none of the Parent Borrower or any Foreign
      Subsidiary Borrower will, nor will they permit any Subsidiary to, enter into
      any
      arrangement, directly or indirectly, whereby it shall sell or transfer any
      property, real or personal, used or useful in its business, whether now owned
      or
      hereinafter acquired, and thereafter rent or lease such property or other
      property that it intends to use for substantially the same purpose or purposes
      as the property sold or transferred, except for, solely with respect to property
      not owned as of the Restatement Effective Date (other than property which
      becomes or is required to become Collateral as a result of the termination
      of
      operating leases pursuant to Section 5.16), any such sale of any fixed or
      capital assets that is made for cash consideration in an amount not less than
      the cost of such fixed or capital asset and is consummated within 180 days
      after
      the Parent Borrower, such Foreign Subsidiary Borrower or such Subsidiary
      acquires or completes the construction of such fixed or capital asset, so long
      as the Capital Lease Obligations associated therewith are permitted by
      Section 6.01(a)(xi).

     

    SECTION
      6.07. Hedging
      Agreements.
      None of
      the Parent Borrower or any Foreign Subsidiary Borrower will, nor will they
      permit any Subsidiary to, enter into any Hedging Agreement, other
      than Hedging Agreements entered into in the ordinary course of business and
      which are not speculative in nature to hedge or mitigate risks to which the
      Parent Borrower or any Subsidiary is exposed in the conduct of its business
      or
      the management of its assets or liabilities.

     

    SECTION
      6.08. Restricted
      Payments; Certain Payments of Indebtedness.
      (a)  None of Holdings, the Parent Borrower or any Foreign Subsidiary
      Borrower will, nor will they permit any Subsidiary to, declare or make, or
      agree
      to pay or make, directly or indirectly, any Restricted Payment, or incur any
      obligation (contingent or otherwise) to do so, except:

     

    (i)
      Holdings may (x) declare and pay dividends with respect to its Equity
      Interests payable solely in additional Equity Interests of Holdings,
      (y) repurchase Equity Interests not to exceed $10,000,000 from former
      shareholders of its existing or former Subsidiaries that received such Equity
      Interests of Holdings prior to the date hereof and (z) repurchase the preferred
      stock of Holdings in an aggregate amount not to exceed $20,000,000, provided
      that, at
      the time of such repurchase and after giving effect thereto, no Default or
      Event
      of Default shall have occurred and be continuing and Holdings and the Parent
      Borrower are in compliance with Sections 6.13 and 6.14;

     

    (ii)
      Subsidiaries may declare and pay dividends ratably with respect to their capital
      stock;

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    (iii)
      the
      Parent Borrower may make payments to Holdings to permit it to make, and Holdings
      may make, Restricted Payments, not exceeding $2,000,000 during any fiscal year
      (provided
      that
      such amount shall be increased, in respect of the fiscal year ending on
      December 31, 2002, and each fiscal year thereafter by an amount equal to
      the total unused amount of such Restricted Payments for the immediately
      preceding fiscal year (without giving effect to the amount of any unused amounts
      that were carried forward to such preceding fiscal year) not to exceed in the
      aggregate $16,000,000), in each case pursuant to and in accordance with stock
      option plans, equity purchase programs or agreements or other benefit plans,
      in
      each case for management or employees or former employees of the Parent Borrower
      and the Subsidiaries;

     

    (iv)
      the
      Parent Borrower may pay dividends to Holdings at such times and in such amounts
      (A) as shall be necessary to enable Holdings to make payments permitted by
      clause (z) of Section 6.08(a)(i) and Sections 6.08(a)(v) and (vi) and
      (B) as shall be necessary to permit Holdings to discharge its other
      permitted liabilities;

     

    (v)
      Holdings may pay Holdings Preferred Dividends and interest in respect of its
      Indebtedness permitted hereunder, provided
      that, at
      the time of such payment and after giving effect thereto, no Default or Event
      of
      Default shall have occurred and be continuing and Holdings and the Parent
      Borrower are in compliance with Sections 6.13 and 6.14;

     

    (vi)
      Holdings may make payments to the extent contemplated by the Recapitalization
      Agreement, including payments in respect of the restricted stock granted
      pursuant to the Restricted Stock Obligation (including payments in respect
      of
      the Restricted Stock Obligation after the date such payments were scheduled
      to
      have been made), provided that, at the time of such payment in respect of the
      Restricted Stock Obligation and after giving effect thereto, no Event of Default
      shall have occurred and be continuing;

     

    (vii)
      Holdings may (x) pay the Saturn Proceeds Distribution and
      (y) repurchase, redeem, repay or otherwise retire the Convertible
      Debentures with Available Funds, proceeds from Permitted Senior Notes (to the
      extent permitted by such defined term), Permitted Subordinated Notes or
      issuances or sales of capital stock of Holdings; and

     

    (viii)
      Parent Borrower may make payments to Holdings to permit it to make, and Holdings
      may make payments permitted by Sections 6.09(f), (g), (h) and (i); provided
      that, at
      the time of such payment and after giving effect thereto, no Default or Event
      of
      Default shall have occurred and be continuing and Holdings and the Parent
      Borrower are in compliance with Sections 6.13 and 6.14; provided,
      further
      that any
      payments that are prohibited because of the immediately preceding proviso shall
      accrue and may be made as so accrued upon the curing or waiver of such Default,
      Event of Default or noncompliance.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    (b) None
      of
      Holdings, the Parent Borrower or any Foreign Subsidiary Borrower will, nor
      will
      they permit any Subsidiary to, make or agree to pay or make, directly or
      indirectly, any payment or other distribution (whether in cash, securities
      or
      other property) of or in respect of principal of or interest on any
      Indebtedness, or any payment or other distribution (whether in cash, securities
      or other property), including any sinking fund or similar deposit, on account
      of
      the purchase, redemption, retirement, acquisition, cancellation or termination
      of any Indebtedness, except:

     

    (i)
      payment of Indebtedness created under the Loan Documents;

     

    (ii)
      the
      repurchase, redemption, repayment or other retirement of the Convertible
      Debentures as permitted by Section 6.08(a)(vii);

     

    (iii)
      payment of regularly scheduled interest and principal payments as and when
      due
      in respect of any Indebtedness, other than payments in respect of the
      subordinated Indebtedness prohibited by the subordination provisions
      thereof;

     

    (iv)
      refinancings of Indebtedness to the extent permitted by Section 6.01;

     

    (v)
      payment of secured Indebtedness out of the proceeds of any sale or transfer
      of
      the property or assets securing such Indebtedness; and

     

    (vi)
      payment of Indebtedness or other obligations made pursuant to Section 5.16.

     

    (c) None
      of
      Holdings, the Parent Borrower or any Foreign Subsidiary Borrower will, nor
      will
      they permit any Subsidiary to, enter into or be party to, or make any payment
      under, any Synthetic Purchase Agreement unless (i) in the case of any
      Synthetic Purchase Agreement related to any Equity Interest of Holdings, the
      payments required to be made by Holdings are limited to amounts permitted to
      be
      paid under Section 6.08(a), (ii) in the case of any Synthetic Purchase
      Agreement related to any Restricted Indebtedness, the payments required to
      be
      made by Holdings, the Parent Borrower or the Subsidiaries thereunder are limited
      to the amount permitted under Section 6.08(b) and (iii) in the case of
      any Synthetic Purchase Agreement, the obligations of Holdings, the Parent
      Borrower and the Subsidiaries thereunder are subordinated to the Obligations
      on
      terms satisfactory to the Required Lenders.

     

    SECTION
      6.09. Transactions
      with Affiliates.
      None of
      Holdings, the Parent Borrower or any Foreign Subsidiary Borrower will, nor
      will
      they permit any Subsidiary to, sell, lease or otherwise transfer any property
      or
      assets to, or purchase, lease or otherwise acquire any property or assets from,
      or otherwise engage in any other transactions with, any of its Affiliates,
      except:

     

    (a)
      transactions that do not involve Holdings and are at prices and on terms and
      conditions not less favorable to the Parent Borrower or such Subsidiary than
      could be obtained on an arm's-length basis from unrelated third
      parties;

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    (b)
      transactions between or among the Parent Borrower and the Subsidiaries not
      involving any other Affiliate (to the extent not otherwise prohibited by other
      provisions of this Agreement);

     

    (c)
      any
      Restricted Payment permitted by Section 6.08;

     

    (d)
      transactions pursuant to agreements in effect on the Effective Date and listed
      on Schedule 6.09 to the Original Credit Agreement (provided
      that
      this clause (d) shall not apply to any extension, or renewal of, or any
      amendment or modification of such agreements that is less favorable to the
      Parent Borrower or the applicable Subsidiaries, as the case may
      be);

     

    (e)
      (i)
      the Transactions and (ii) the TriMas Transactions and the TriMas Affiliate
      Agreements (provided
      that
      this clause (e)(ii) shall not apply to any extension, or renewal of, or any
      amendment or modification of such agreements that is less favorable in any
      material respect, taken as a whole, to the Parent Borrower or the applicable
      Subsidiaries, as the case may be);

     

    (f)
      the
      payment, on a quarterly basis, of management fees to Heartland and/or its
      Affiliates in accordance with the Heartland Management Agreement, provided
      that the
      annual amount of such management fees shall not exceed $4,000,000;

     

    (g)
      the
      reimbursement of Heartland and/or its Affiliates for their reasonable
      out-of-pocket expenses incurred by them in connection with the Transactions
      and
      performing management services to Holdings, the Parent Borrower and the
      Subsidiaries, pursuant to the Heartland Management Agreement;

     

    (h)
      the
      payment of one time fees to Heartland and/or its Affiliates in connection with
      any Permitted Acquisition, such fees to be payable at the time of each such
      acquisition and not to exceed the percentage of the aggregate consideration
      paid
      by Holdings, the Parent Borrower and its Subsidiaries for any such acquisition
      as specified in the Heartland Management Agreement; and

     

    (i)
      payments to Heartland and/or its Affiliates for any financial advisor,
      underwriter or placement services or other investment banking activities
      rendered to Holdings, the Parent Borrower or the Subsidiaries, pursuant to
      the
      Heartland Management Agreement.

     

    SECTION
      6.10. Restrictive
      Agreements.
      None of
      Holdings, the Parent Borrower or any Foreign Subsidiary Borrower will, nor
      will
      they permit any Subsidiary to, directly or indirectly, enter into, incur or
      permit to exist any agreement or other arrangement that prohibits, restricts
      or
      imposes any condition upon (a) the ability of Holdings, the Parent Borrower
      or any Subsidiary to create, incur or permit to exist any Lien upon any of
      its
      property or assets, or (b) the ability of any Subsidiary to pay dividends
      or other distributions with respect to any shares of its capital stock or to
      make or repay loans or advances to the Parent Borrower or any other Subsidiary
      or to 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    99

     

    

    Guarantee
      Indebtedness of the Parent Borrower or any other Subsidiary; provided
      that
      (i) the foregoing shall not apply to restrictions and conditions imposed by
      law or by any (A) Loan Document or Permitted Receivables Document or (B) any
      Existing Subordinated Notes, Permitted Subordinated Notes and Permitted Senior
      Notes that are customary, in the reasonable judgment of the board of directors
      thereof, for the market in which such Indebtedness is issued so long as such
      restrictions do not prevent, impede or impair (x) the creation of Liens and
      Guarantees in favor of the Lenders under the Loan Documents or (y) the
      satisfaction of the obligations of the Loan Parties under the Loan Documents,
      (ii) the foregoing shall not apply to restrictions and conditions existing
      on the date hereof identified on Schedule 6.10 to the Original Credit Agreement
      (but shall apply to any extension or renewal of, or any amendment or
      modification expanding the scope of, any such restriction or condition),
      (iii) the foregoing shall not apply to customary restrictions and
      conditions contained in agreements relating to the sale of a Subsidiary pending
      such sale, provided,
      further,
      that
      such restrictions and conditions apply only to the Subsidiary that is to be
      sold
      and such sale is permitted hereunder, (iv) clause (a) of the foregoing
      shall not apply to restrictions or conditions imposed by any agreement relating
      to secured Indebtedness permitted by this Agreement if such restrictions or
      conditions apply only to the property or assets securing such Indebtedness
      and
      (v) clause (a) of the foregoing shall not apply to customary
      provisions in leases and other agreements restricting the assignment
      thereof.

     

    SECTION
      6.11. Amendment
      of Material Documents.
      None of
      Holdings, the Parent Borrower or any Foreign Subsidiary Borrower will, nor
      will
      they permit any Subsidiary (including the Receivables Subsidiary and the Saturn
      Subsidiary) to, amend, modify or waive any of its rights under (a) its
      certificate of incorporation, by-laws or other organizational documents,
      (b) the Recapitalization Documents and (c) any Material Agreement, in
      each case to the extent such amendment, modification or waiver is adverse to
      the
      Lenders.

     

    SECTION
      6.12. Convertible
      Debentures.  Holdings
      shall not repurchase, redeem, repay or otherwise retire any Convertible
      Debentures except as permitted by Section 6.08(a)(vii).

     

    SECTION
      6.13. Interest
      Expense Coverage Ratio. Neither
      Holdings nor the Parent Borrower will permit the ratio of (a) Consolidated
      EBITDA to (b) the sum of (i) Consolidated Cash Interest Expense and
      (ii) Holdings Preferred Dividends, in each case for any period of four
      consecutive fiscal quarters ending on the last date of any fiscal quarter set
      forth below, to be less than the ratio set forth below opposite such
      period:

     

    

    
      	
              Period

               

            	
              Ratio

               

            
	
              First
                Fiscal Quarter of 2005

               

            	
              2.10
                to 1.00

               

            
	
              Second
                Fiscal Quarter of 2005

               

            	
              2.15
                to 1.00

               

            
	
              Third
                Fiscal Quarter of 2005

               

            	
              2.20
                to 1.00

               

            
	
              Fourth
                Fiscal Quarter of 2005

               

            	
              2.20
                to 1.00

               

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    100

     

    

    

    
      	
              Period

               

            	
              Ratio

               

            
	
              First
                Fiscal Quarter of 2006

              to
                the Fourth Fiscal Quarter of 2006

               

            	
              1.75
                to 1.00

               

            
	
              First
                Fiscal Quarter of 2007

              to
                the Fourth Fiscal Quarter of 2007

               

            	
              2.00
                to 1.00

               

            
	
              First
                Fiscal Quarter of 2008

              to
                the Fourth Fiscal Quarter of 2008

               

            	
              2.25
                to 1.00

               

            
	
              First
                Fiscal Quarter of 2009

              and
                thereafter

               

            	
              2.50
                to 1.00

               

            

    

    

    SECTION
      6.14. Leverage
      Ratio.
      Neither
      Holdings nor the Parent Borrower will permit the Leverage Ratio as of the last
      date of any fiscal quarter set forth below to exceed the ratio set forth
      opposite such period:

     

    
      	
              Period

               

            	
              Ratio

               

            
	
              First
                and Second Fiscal Quarters of 2005

               

            	
              5.25
                to 1.00

               

            
	
              Third
                Fiscal Quarter of 2005

               

            	
              5.00
                to 1.00

               

            
	
              Fourth
                Fiscal Quarter of 2005

               

            	
              4.75
                to 1.00

               

            
	
              First
                Fiscal Quarter of 2006

              to
                the Fourth Fiscal Quarter of 2006

               

            	
              5.25
                to 1.00

               

            
	
              First
                Fiscal Quarter of 2007

              to
                the Fourth Fiscal Quarter of 2007

               

            	
              5.00
                to 1.00

               

            
	
              First
                Fiscal Quarter of 2008

              to
                the Fourth Fiscal Quarter of 2008

               

            	
              4.50
                to 1.00

               

            
	
              First
                Fiscal Quarter of 2009 and each

              fiscal
                quarter thereafter

               

            	
              4.00
                to 1.00

               

            

    

    

    SECTION
      6.15. Capital
      Expenditures.
      (a)  Neither Holdings nor the Parent Borrower will permit the
      aggregate amount of Capital Expenditures for any period to exceed the applicable
      Permitted Capital Expenditure Amount for such period, provided that for any
      fiscal year during which the North American forging business is owned by the
      Parent Borrower, the Parent Borrower shall be entitled to spend an additional
      $15,000,000 per fiscal year, pro rated for ownership for a portion of the fiscal
      year.

     

    (b) Notwithstanding
      the foregoing, the Parent Borrower may in respect of the fiscal year ending
      on
      December 31, 2007, and each fiscal year thereafter, increase the amount of
      Capital Expenditures permitted to be made during such fiscal year pursuant
      to
      Section 6.15(a) by an amount equal to the total unused amount of permitted
      Capital Expenditures for the immediately preceding fiscal year (without giving
      effect to the amount of any unused permitted Capital Expenditures that were
      carried forward to such preceding fiscal year).

     

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    101

     

    

    SECTION
      6.16. Consolidated
      Lease Expense.
      Neither
      Holdings nor the Parent Borrower will permit Consolidated Lease Expense
      associated with Capital Expenditures to exceed 30% of Capital Expenditures
      for
      such fiscal year.

     

     

    ARTICLE
      VII

     

    Events
      of
      Default

     

    If
      any of
      the following events ("Events
      of Default")
      shall
      occur:

     

    (a)
      the
      Parent Borrower or any Foreign Subsidiary Borrower shall fail to pay any
      principal of any Loan or any reimbursement obligation in respect of any LC
      Disbursement when and as the same shall become due and payable, whether at
      the
      due date thereof or at a date fixed for prepayment thereof or
      otherwise;

     

    (b)
      the
      Parent Borrower or any Foreign Subsidiary Borrower shall fail to pay any
      interest on any Loan or any fee or any other amount (other than an amount
      referred to in clause (a) of this Article) payable under this Agreement or
      any other Loan Document, when and as the same shall become due and payable,
      and
      such failure shall continue unremedied for a period of five Business
      Days;

     

    (c)
      any
      representation or warranty made or deemed made by or on behalf of Holdings,
      the
      Parent Borrower, any Foreign Subsidiary Borrower or any Subsidiary in or in
      connection with any Loan Document or any amendment or modification thereof
      or
      waiver thereunder, or in any report, certificate, financial statement or other
      document furnished pursuant to or in connection with any Loan Document or any
      amendment or modification thereof or waiver thereunder, shall prove to have
      been
      incorrect in any material respect when made or deemed made;

     

    (d)
      Holdings, the Parent Borrower or any Foreign Subsidiary Borrower shall fail
      to
      observe or perform any covenant, condition or agreement contained in
      Section 5.02, 5.04 (with respect to the existence of Holdings, the Parent
      Borrower or any Foreign Subsidiary Borrower and ownership of the Foreign
      Subsidiary Borrowers), 5.11, 5.15 or 5.16 or in Article VI;

     

    (e)
      any
      Loan Party shall fail to observe or perform any covenant, condition or agreement
      contained in any Loan Document (other than those specified in clause (a),
      (b) or (d) of this Article), and such failure shall continue
      unremedied for a period of 30 days after notice thereof from the
      Administrative Agent to the Parent Borrower (which notice will be given at
      the
      request of any Lender);

     

    (f)
      Holdings, the Parent Borrower or any Subsidiary shall fail to make any
      payment of principal or interest in respect of any Material Indebtedness, when
      and as the same shall become due and payable after giving effect to any
      applicable grace period with respect thereto;

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    102

     

    

    (g)
      any
      event or condition occurs that results in any Material Indebtedness becoming
      due
      prior to its scheduled maturity or that enables or permits the holder or holders
      of any Material Indebtedness or any trustee or agent on its or their behalf
      to
      cause any Material Indebtedness to become due, or to require the prepayment,
      repurchase, redemption or defeasance thereof, prior to its scheduled maturity;
      provided
      that
      this clause (g) shall not apply to secured Indebtedness that becomes due as
      a result of the voluntary sale or transfer of the property or assets securing
      such Indebtedness;

     

    (h)
      an
      involuntary proceeding shall be commenced or an involuntary petition shall
      be
      filed seeking (i) liquidation, reorganization or other relief in respect of
      Holdings, the Parent Borrower or any Subsidiary or its debts, or of a
      substantial part of its assets, under any Federal, state or foreign bankruptcy,
      insolvency, receivership or similar law now or hereafter in effect or
      (ii) the appointment of a receiver, trustee, custodian, sequestrator,
      conservator or similar official for Holdings, the Parent Borrower or any
      Subsidiary or for a substantial part of its assets, and, in any such case,
      such
      proceeding or petition shall continue undismissed for 60 days or an order
      or decree approving or ordering any of the foregoing shall be
      entered;

     

    (i)
      Holdings, the Parent Borrower or any Subsidiary shall (i) voluntarily
      commence any proceeding or file any petition seeking liquidation, reorganization
      or other relief under any Federal, state or foreign bankruptcy, insolvency,
      receivership or similar law now or hereafter in effect, (ii) consent to the
      institution of, or fail to contest in a timely and appropriate manner, any
      proceeding or petition described in clause (h) of this Article, (iii) apply
      for or consent to the appointment of a receiver, trustee, custodian,
      sequestrator, conservator or similar official for Holdings, the Parent Borrower
      or any Subsidiary or for a substantial part of its assets, (iv) file an
      answer admitting the material allegations of a petition filed against it in
      any
      such proceeding, (v) make a general assignment for the benefit of creditors
      or (vi) take any action for the purpose of effecting any of the
      foregoing;

     

    (j)
      Holdings, the Parent Borrower or any Subsidiary shall become unable, admit
      in
      writing in a court proceeding its inability or fail generally to pay its debts
      as they become due;

     

    (k)
      one
      or more judgments for the payment of money in an aggregate amount in excess
      of
      $15,000,000 shall be rendered against Holdings, the Parent Borrower, any
      Subsidiary or any combination thereof and the same shall remain undischarged
      for
      a period of 30 consecutive days during which execution shall not be
      effectively stayed, or any action shall be legally taken by a judgment creditor
      to attach or levy upon any assets of Holdings, the Parent Borrower or any
      Subsidiary to enforce any such judgment;

     

    (l)
      an
      ERISA Event shall have occurred that, in the opinion of the Required Lenders,
      when taken together with all other ERISA Events that have 

     

    

     

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    103

     

    

    occurred,
      could reasonably be expected to result in a Material Adverse Effect on Holdings,
      the Parent Borrower and its Subsidiaries;

     

    (m)
      any
      Lien covering property having a book value or fair market value of $1,000,000
      or
      more purported to be created under any Security Document shall cease to be,
      or
      shall be asserted by any Loan Party not to be, a valid and perfected Lien on
      any
      Collateral, except (i) as a result of the sale or other disposition of the
      applicable Collateral in a transaction permitted under the Loan Documents or
      (ii) as a result of the Administrative Agent's failure to maintain possession
      of
      any stock certificates, promissory notes or other instruments delivered to
      it
      under the Collateral Agreement;

     

    (n)
      the
      Guarantee Agreement shall cease to be, or shall have been asserted not to be,
      in
      full force and effect;

     

    (o)
      the
      Parent Borrower, Holdings or any Subsidiary shall challenge the subordination
      provisions of the Subordinated Debt or assert that such provisions are invalid
      or unenforceable or that the Obligations of the Parent Borrower or any Foreign
      Subsidiary Borrower, or the Obligations of Holdings or any Subsidiary under
      the
      Guarantee Agreement, are not senior indebtedness under the subordination
      provisions of the Subordinated Debt, or any court, tribunal or government
      authority of competent jurisdiction shall judge the subordination provisions
      of
      the Subordinated Debt to be invalid or unenforceable or such Obligations to
      be
      not senior indebtedness under such subordination provisions or otherwise cease
      to be, or shall be asserted not to be, legal, valid and binding obligations
      of
      the parties thereto, enforceable in accordance with their terms; or

     

    (p)
      a
      Change in Control shall occur;

     

    then,
      and
      in every such event (other than an event with respect to the Parent Borrower
      described in clause (h) or (i) of this Article), and at any time thereafter
      during the continuance of such event, the Administrative Agent may, and at
      the
      request of the Required Lenders shall, by notice to the Parent Borrower, take
      either or both of the following actions, at the same or different
      times:  (i) terminate the Commitments, and thereupon the
      Commitments shall terminate immediately, and (ii) declare the Loans then
      outstanding to be due and payable in whole (or in part, in which case any
      principal not so declared to be due and payable may thereafter be declared
      to be
      due and payable), and thereupon the principal of the Loans so declared to be
      due
      and payable, together with accrued interest thereon and all fees and other
      obligations of the Parent Borrower or any Foreign Subsidiary Borrower accrued
      hereunder, shall become due and payable immediately, without presentment,
      demand, protest or other notice of any kind, all of which are hereby waived
      by
      the Parent Borrower and the Foreign Subsidiary Borrowers; and in case of any
      event with respect to the Parent Borrower or any Foreign Subsidiary Borrower
      described in clause (h) or (i) of this Article, the Commitments shall
      automatically terminate and the principal of the Loans then outstanding,
      together with accrued interest thereon and all fees and other obligations of
      the
      Parent Borrower or any Foreign Subsidiary Borrower accrued hereunder, shall
      automatically become due and 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    104

     

    

    payable,
      without presentment, demand, protest or other notice of any kind, all of which
      are hereby waived by the Parent Borrower and the Foreign Subsidiary
      Borrowers.

     

     

    ARTICLE
      VIII

     

    The
      Administrative Agent

     

    Each
      of
      the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative
      Agent (it being understood that reference in this Article VIII to the
      Administrative Agent shall be deemed to include the Collateral Agent) as its
      agent and authorizes the Administrative Agent to take such actions on its behalf
      and to exercise such powers as are delegated to the Administrative Agent by
      the
      terms of the Loan Documents, together with such actions and powers as are
      reasonably incidental thereto.

     

    The
      bank
      serving as the Administrative Agent hereunder shall have the same rights and
      powers in its capacity as a Lender as any other Lender and may exercise the
      same
      as though it were not the Administrative Agent, and such bank and its Affiliates
      may accept deposits from, lend money to and generally engage in any kind of
      business with Holdings, the Parent Borrower or any Subsidiary or other Affiliate
      thereof as if it were not the Administrative Agent hereunder.

     

    The
      Administrative Agent shall not have any duties or obligations except those
      expressly set forth in the Loan Documents. Without limiting the generality
      of
      the foregoing, (a) the Administrative Agent shall not be subject to any
      fiduciary or other implied duties, regardless of whether a Default has occurred
      and is continuing, (b) the Administrative Agent shall not have any duty to
      take any discretionary action or exercise any discretionary powers, except
      discretionary rights and powers expressly contemplated by the Loan Documents
      that the Administrative Agent is required to exercise in writing by the Required
      Lenders (or such other number or percentage of the Lenders as shall be necessary
      under the circumstances as provided in Section 10.02), and (c) except
      as expressly set forth in the Loan Documents, the Administrative Agent shall
      not
      have any duty to disclose, and shall not be liable for the failure to disclose,
      any information relating to Holdings, the Parent Borrower or any of its
      Subsidiaries that is communicated to or obtained by the bank serving as
      Administrative Agent or any of its Affiliates in any capacity. The
      Administrative Agent shall not be liable for any action taken or not taken
      by it
      with the consent or at the request of the Required Lenders (or such other number
      or percentage of the Lenders as shall be necessary under the circumstances
      as
      provided in Section 10.02) or in the absence of its own gross negligence or
      wilful misconduct. The Administrative Agent shall not be deemed not to have
      knowledge of any Default unless and until written notice thereof is given to
      the
      Administrative Agent by Holdings, the Parent Borrower, a Foreign Subsidiary
      Borrower or a Lender, and the Administrative Agent shall not be responsible
      for
      or have any duty to ascertain or inquire into (i) any statement, warranty
      or representation made in or in connection with any Loan Document, (ii) the
      contents of any certificate, report or other document delivered thereunder
      or in
      connection therewith, (iii) the performance or observance of any of the
      covenants, 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    105

     

    

    agreements
      or other terms or conditions set forth in any Loan Document, (iv) the
      validity, enforceability, effectiveness or genuineness of any Loan Document
      or
      any other agreement, instrument or document, or (v) the satisfaction of any
      condition set forth in Article IV or elsewhere in any Loan Document, other
      than to confirm receipt of items expressly required to be delivered to the
      Administrative Agent.

     

    The
      Administrative Agent shall be entitled to rely upon, and shall not incur any
      liability for relying upon, any notice, request, certificate, consent,
      statement, instrument, document or other writing believed by it to be genuine
      and to have been signed or sent by the proper Person. The Administrative Agent
      also may rely upon any statement made to it orally or by telephone and believed
      by it to be made by the proper Person, and shall not incur any liability for
      relying thereon. The Administrative Agent may consult with legal counsel (who
      may be counsel for the Parent Borrower or any Foreign Subsidiary Borrower),
      independent accountants and other experts selected by it, and shall not be
      liable for any action taken or not taken by it in accordance with the advice
      of
      any such counsel, accountants or experts.

     

    The
      Administrative Agent may perform any and all its duties and exercise its rights
      and powers by or through any one or more sub-agents appointed by the
      Administrative Agent. The Administrative Agent and any such sub-agent may
      perform any and all its duties and exercise its rights and powers through their
      respective Related Parties. The exculpatory provisions of the preceding
      paragraphs shall apply to any such sub-agent and to the Related Parties of
      each
      Administrative Agent and any such sub-agent, and shall apply to their respective
      activities in connection with the syndication of the credit facilities provided
      for herein as well as activities as Administrative Agent.

     

    Subject
      to the appointment and acceptance of a successor Administrative Agent as
      provided in this paragraph, the Administrative Agent may resign at any time
      by
      notifying the Lenders, the Issuing Bank and the Parent Borrower (on behalf
      of
      itself and the Foreign Subsidiary Borrowers). Upon any such resignation, the
      Required Lenders shall have the right, in consultation with the Parent Borrower
      and, if applicable, the relevant Foreign Subsidiary Borrower, to appoint a
      successor from among the Lenders. If no successor shall have been so appointed
      by the Required Lenders and shall have accepted such appointment within
      30 days after the retiring Administrative Agent gives notice of its
      resignation, then the retiring Administrative Agent may, on behalf of the
      Lenders and the Issuing Bank, appoint a successor Administrative Agent which
      shall be a bank with an office in New York, New York, or an Affiliate
      of any such bank. Upon the acceptance of its appointment as Administrative
      Agent
      hereunder by a successor, such successor shall succeed to and become vested
      with
      all the rights, powers, privileges and duties of the retiring Administrative
      Agent, and the retiring Administrative Agent shall be discharged from its duties
      and obligations hereunder. The fees payable by the Parent Borrower (on behalf
      of
      itself and the Foreign Subsidiary Borrowers) to a successor Administrative
      Agent
      shall be the same as those payable to its predecessor unless otherwise agreed
      between the Parent Borrower (on behalf of itself and the Foreign Subsidiary
      Borrowers) and such successor. After the Administrative Agent's resignation
      hereunder, the provisions of this Article and Section 10.03 shall continue
      in effect for the benefit of such retiring Administrative Agent, its sub-agents
      and their respective Related 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    106

     

    

    Parties
      in respect of any actions taken or omitted to be taken by any of them while
      it
      was acting as Administrative Agent.

     

    Each
      Lender acknowledges that it has, independently and without reliance upon the
      Administrative Agent or any other Lender and based on such documents and
      information as it has deemed appropriate, made its own credit analysis and
      decision to enter into this Agreement. Each Lender also acknowledges that it
      will, independently and without reliance upon the Administrative Agent or any
      other Lender and based on such documents and information as it shall from time
      to time deem appropriate, continue to make its own decisions in taking or not
      taking action under or based upon this Agreement, any other Loan Document or
      related agreement or any document furnished hereunder or
      thereunder.

     

    The
      Lenders identified in this Agreement as the Syndication Agent and the
      Documentation Agents shall not have any right, power, obligation, liability,
      responsibility or duty under this Agreement other than those applicable to
      all
      Lenders. Without limiting the foregoing, none of the Syndication Agent or the
      Documentation Agents shall have or be deemed to have a fiduciary relationship
      with any Lender. Each Lender hereby makes the same acknowledgments with respect
      to the Syndication Agent and the Documentation Agents as it makes with respect
      to the Administrative Agent or any other Lender in this Article
      VIII.

     

     

    ARTICLE
      IX

     

    Collection
      Allocation Mechanism

     

    SECTION
      9.01. Implementation
      of CAM.  (a)  On
      the CAM Exchange Date, (i) the Commitments shall automatically and without
      further act be terminated as provided in Article VII, (ii) all Foreign
      Currency Borrowings and the Commitments to make Foreign Currency Loans shall
      be
      converted into, and all such amounts due thereunder shall accrue and be payable
      in, dollars at the Exchange Rate on such date and (iii) the Lenders shall
      automatically and without further act (and without regard to the provisions
      of
      Section 10.04) be deemed to have exchanged interests in the Credit
      Facilities such that in lieu of the interest of each Lender in each Credit
      Facility in which it shall participate as of such date (including such Lender's
      interest in the Specified Obligations of each Loan Party in respect of each
      such
      Credit Facility), such Lender shall hold an interest in every one of the Credit
      Facilities (including the Specified Obligations of each Loan Party in respect
      of
      each such Credit Facility and each LC Reserve Account established pursuant
      to
      Section 9.02 below), whether or not such Lender shall previously have
      participated therein, equal to such Lender's CAM Percentage thereof. Each Lender
      and each Loan Party hereby consents and agrees to the CAM Exchange, and each
      Lender agrees that the CAM Exchange shall be binding upon its successors and
      assigns and any person that acquires a participation in its interests in any
      Credit Facility. Each Loan Party agrees from time to time to execute and deliver
      to the Administrative Agent all promissory notes and other instruments and
      documents as the Administrative Agent shall 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    107

     

    

    reasonably
      request to evidence and confirm the respective interests of the Lenders after
      giving effect to the CAM Exchange, and each Lender agrees to surrender any
      promissory notes originally received by it in connection with its Loans
      hereunder to the Administrative Agent against delivery of new promissory notes
      evidencing its interests in the Credit Facilities; provided,
      however,
      that
      the failure of any Loan Party to execute or deliver or of any Lender to accept
      any such promissory note, instrument or document shall not affect the validity
      or effectiveness of the CAM Exchange.

     

    (b) As
      a
      result of the CAM Exchange, upon and after the CAM Exchange Date, each payment
      received by the Administrative Agent or the Collateral Agent pursuant to any
      Loan Document in respect of the Specified Obligations, and each distribution
      made by the Collateral Agent pursuant to any Security Documents in respect
      of
      the Specified Obligations, shall be distributed to the Lenders pro rata in
      accordance with their respective CAM Percentages. Any direct payment received
      by
      a Lender upon or after the CAM Exchange Date, including by way of setoff, in
      respect of a Specified Obligation shall be paid over to the Administrative
      Agent
      for distribution to the Lenders in accordance herewith.

     

    SECTION
      9.02. Letters
      of Credit.  (a)  In
      the event that on the CAM Exchange Date any Letter of Credit shall be
      outstanding and undrawn in whole or in part, or any amount drawn under a Letter
      of Credit shall not have been reimbursed either by the Parent Borrower or any
      Foreign Subsidiary Borrower, as the case may be, or with the proceeds of a
      Revolving Borrowing, each Revolving Lender shall promptly pay over to the
      Administrative Agent, in immediately available funds and in the currency that
      such Letters of Credit are denominated, an amount equal to such Revolving
      Lender's Applicable Percentage (as notified to such Lender by the Administrative
      Agent) of such Letter of Credit's undrawn face amount or (to the extent it
      has
      not already done so) such Letter of Credit's unreimbursed drawing, together
      with
      interest thereon from the CAM Exchange Date to the date on which such amount
      shall be paid to the Administrative Agent at the rate that would be applicable
      at the time to an ABR Revolving Loan in a principal amount equal to such amount,
      as the case may be. The Administrative Agent shall establish a separate account
      or accounts for each Lender (each, an "LC
      Reserve Account")
      for
      the amounts received with respect to each such Letter of Credit pursuant to
      the
      preceding sentence. The Administrative Agent shall deposit in each Lender's
      LC
      Reserve Account such Lender's CAM Percentage of the amounts received from the
      Revolving Lenders as provided above. The Administrative Agent shall have sole
      dominion and control over each LC Reserve Account, and the amounts deposited
      in
      each LC Reserve Account shall be held in such LC Reserve Account until withdrawn
      as provided in paragraph (b), (c), (d) or (e) below. The
      Administrative Agent shall maintain records enabling it to determine the amounts
      paid over to it and deposited in the LC Reserve Accounts in respect of each
      Letter of Credit and the amounts on deposit in respect of each Letter of Credit
      attributable to each Lender's CAM Percentage. The amounts held in each Lender's
      LC Reserve Account shall be held as a reserve against the LC Exposure, shall
      be
      the property of such Lender, shall not constitute Loans to or give rise to
      any
      claim of or against any Loan Party and shall not give rise to any obligation
      on
      the part of the Parent Borrower or the Foreign Subsidiary Borrowers to pay
      interest to such Lender, it being agreed that the reimbursement obligations
      in
      respect of Letters of

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    108

     

    Credit
      shall arise only at such times as drawings are made thereunder, as provided
      in
      Section 2.05.

     

    (b) In
      the
      event that after the CAM Exchange Date any drawing shall be made in respect
      of a
      Letter of Credit, the Administrative Agent shall, at the request of the Issuing
      Bank withdraw from the LC Reserve Account of each Lender any amounts, up to
      the
      amount of such Lender's CAM Percentage of such drawing, deposited in respect
      of
      such Letter of Credit and remaining on deposit and deliver such amounts to
      the
      Issuing Bank in satisfaction of the reimbursement obligations of the Revolving
      Lenders under Section 2.05(e) (but not of the Parent Borrower and the
      Foreign Subsidiary Borrowers under Section 2.05(f), respectively). In the event
      any Revolving Lender shall default on its obligation to pay over any amount
      to
      the Administrative Agent in respect of any Letter of Credit as provided in
      this
      Section 9.02, the Issuing Bank shall, in the event of a drawing thereunder,
      have a claim against such Revolving Lender to the same extent as if such Lender
      had defaulted on its obligations under Section 2.05(e), but shall have no claim
      against any other Lender in respect of such defaulted amount, notwithstanding
      the exchange of interests in the reimbursement obligations pursuant to
      Section 9.01. Each other Lender shall have a claim against such defaulting
      Revolving Lender for any damages sustained by it as a result of such default,
      including, in the event such Letter of Credit shall expire undrawn, its CAM
      Percentage of the defaulted amount.

     

    (c) In
      the
      event that after the CAM Exchange Date any Letter of Credit shall expire
      undrawn, the Administrative Agent shall withdraw from the LC Reserve Account
      of
      each Lender the amount remaining on deposit therein in respect of such Letter
      of
      Credit and distribute such amount to such Lender.

     

    (d) With
      the
      prior written approval of the Administrative Agent and the Issuing Bank, any
      Lender may withdraw the amount held in its LC Reserve Account in respect of
      the
      undrawn amount of any Letter of Credit. Any Lender making such a withdrawal
      shall be unconditionally obligated, in the event there shall subsequently be
      a
      drawing under such Letter of Credit, to pay over to the Administrative Agent,
      for the account of the Issuing Bank on demand, its CAM Percentage of such
      drawing.

     

    (e) Pending
      the withdrawal by any Lender of any amounts from its LC Reserve Account as
      contemplated by the above paragraphs, the Administrative Agent will, at the
      direction of such Lender and subject to such rules as the Administrative Agent
      may prescribe for the avoidance of inconvenience, invest such amounts in
      Permitted Investments. Each Lender that has not withdrawn its CAM Percentage
      of
      amounts in its LC Reserve Account as provided in paragraph (d) above shall
      have the right, at intervals reasonably specified by the Administrative Agent,
      to withdraw the earnings on investments so made by the Administrative Agent
      with
      amounts in its LC Reserve Account and to retain such earnings for its own
      account.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    109

     

    

     

    ARTICLE
      X

     

    Miscellaneous

     

    SECTION
      10.01. Notices.
      Except
      in the case of notices and other communications expressly permitted to be given
      by telephone, all notices and other communications provided for herein shall
      be
      in writing and shall be delivered by hand or overnight courier service, mailed
      by certified or registered mail or sent by telecopy, as follows:

     

    (a)
      if to
      Holdings, the Parent Borrower or any Foreign Subsidiary Borrower, to the Parent
      Borrower (on behalf of itself, Holdings and any Foreign Subsidiary Borrower)
      at
      Metaldyne Corporation, 21001 Van Born Road, Taylor, Michigan 48180, Attention
      of
      David Liner, Esq. (Telecopy No. (313) 792-6136),

     

    with
      a
      copy to

     

    Jonathan
      A. Schaffzin, Esq.

    Cahill
      Gordon & Reindel

    80
      Pine
      Street

    New
      York,
      New York

    (Telecopy
      No. (212) 269-5420);

     

    (b)
      if to
      the Administrative Agent, to JPMorgan Chase Bank, N.A., Loan and Agency Services
      Group, 1111 Fannin Street, 10th Floor, Houston, Texas 77002, Attention of
      Alice Telles (Telecopy No. (713) 750-2938), with a copy to JPMorgan Chase
      Bank, 270 Park Avenue, New York, New York 10017, Attention of
      Richard Duker (Telecopy No. 212-270-5127);

     

    (c)
      if to
      the Issuing Bank, to it at 10420 Highland Mn Dr-BL2, Tampa, Florida 33610,
      Attention of James Alonzo (Telecopy No. (813) 432-5161), and in the
      event that there is more than one Issuing Bank, to such other Issuing Bank
      at
      its address (or telecopy number) set forth in its Administrative
      Questionnaire;

     

    (d)
      if to
      the Swingline Lender, to it at 1111 Fannin Street, 10th Floor, Houston,
      Texas 77002, Attention of Alice Telles (Telecopy No. (713) 750-2938);
      and

     

    (e)
      if to
      any other Lender, to it at its address (or telecopy number) set forth in its
      Administrative Questionnaire.

     

    Any
      party
      hereto may change its address or telecopy number for notices and other
      communications hereunder by notice to the other parties hereto. All notices
      and
      other communications given to any party hereto in accordance with the provisions
      of this Agreement shall be deemed to have been given on the date of
      receipt.

     

    SECTION
      10.02. Waivers;
      Amendments.
      (a)  No failure or delay by the Administrative Agent, the Issuing Bank
      or any Lender in exercising any right or 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    110

     

    

    power
      hereunder or under any other Loan Document shall operate as a waiver thereof,
      nor shall any single or partial exercise of any such right or power, or any
      abandonment or discontinuance of steps to enforce such a right or power,
      preclude any other or further exercise thereof or the exercise of any other
      right or power. The rights and remedies of the Administrative Agent, the Issuing
      Bank and the Lenders hereunder and under the other Loan Documents are cumulative
      and are not exclusive of any rights or remedies that they would otherwise have.
      No waiver of any provision of any Loan Document or consent to any departure
      by
      any Loan Party therefrom shall in any event be effective unless the same shall
      be permitted by paragraph (b) of this Section, and then such waiver or
      consent shall be effective only in the specific instance and for the purpose
      for
      which given. Without limiting the generality of the foregoing, the making of
      a
      Loan or issuance of a Letter of Credit shall not be construed as a waiver of
      any
      Default, regardless of whether the Administrative Agent, any Lender or the
      Issuing Bank may have had notice or knowledge of such Default at the
      time.

     

    (b) Neither
      this Agreement nor any other Loan Document nor any provision hereof or thereof
      may be waived, amended or modified except, in the case of this Agreement,
      pursuant to an agreement or agreements in writing entered into by Holdings,
      the
      Parent Borrower, each Foreign Subsidiary Borrower (but only to the extent such
      waiver, amendment or modification relates to such Foreign Subsidiary Borrower)
      and the Required Lenders or, in the case of any other Loan Document, pursuant
      to
      an agreement or agreements in writing entered into by the Administrative Agent
      and the Loan Party or Loan Parties that are parties thereto, in each case with
      the consent of the Required Lenders; provided
      that no
      such agreement shall (i) increase the Commitment of any Lender without the
      written consent of such Lender, (ii) reduce the principal amount of any Loan
      or
      LC Disbursement or reduce the rate of interest thereon, or reduce any fees
      payable hereunder, without the written consent of each Lender affected thereby,
      (iii) postpone the maturity of any Loan, or any scheduled date of payment of
      the
      principal amount of any Term Loan under Section 2.10, or the required date
      of
      reimbursement of any LC Disbursement, or any date for the payment of any
      interest or fees payable hereunder, or reduce the amount of, waive or excuse
      any
      such payment, or postpone the scheduled date of expiration of any Commitment
      or
      postpone the scheduled date of expiration of any Letter of Credit beyond the
      Revolving Maturity Date, without the written consent of each Lender affected
      thereby, (iv) change Section 2.18(b) or (c) in a manner that would
      alter the pro rata sharing of payments required thereby, without the
      written consent of each Lender, (v) change the percentage set forth in the
      definition of "Required Lenders" or any other provision of any Loan Document
      (including this Section) specifying the number or percentage of Lenders (or
      Lenders of any Class) required to waive, amend or modify any rights thereunder
      or make any determination or grant any consent thereunder, without the written
      consent of each Lender (or each Lender of such Class, as the case may be),
      (vi)
      release Holdings or any Subsidiary Loan Party from its Guarantee under the
      Guarantee Agreement (except as expressly provided in the Guarantee Agreement),
      or limit its liability in respect of such Guarantee, without the written consent
      of each Lender, (vii) release all or substantially all of the Collateral from
      the Liens of the Security Documents, without the written consent of each Lender
      or (viii) change any provisions of any Loan Document in a manner that by its
      terms adversely affects the rights in respect of payments due to Lenders holding
      Loans of any Class 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    111

     

    

    differently
      than those holding Loans of any other Class, without the written consent of
      Lenders holding a majority in interest of the outstanding Loans and unused
      Commitments of each affected Class; provided further
      that
      (A) no such agreement shall amend, modify or otherwise affect the rights or
      duties of the Administrative Agent, the Issuing Bank or the Swingline Lender
      without the prior written consent of the Administrative Agent, the Issuing
      Bank
      or the Swingline Lender, as the case may be, and (B) any waiver, amendment
      or modification of this Agreement that by its terms affects the rights or duties
      under this Agreement of the Revolving Lenders (but not the Tranche D Lenders)
      or
      the Tranche D Lenders (but not the Revolving Lenders), may be effected by an
      agreement or agreements in writing entered into by Holdings, the Parent
      Borrower, each Foreign Subsidiary Parent Borrower (but only to the extent such
      waiver, amendment or modification relates to such Foreign Subsidiary Borrower)
      and requisite percentage in interest of the affected Class of Lenders that
      would
      be required to consent thereto under this Section if such Class of Lenders
      were
      the only Class of Lenders hereunder at the time. Notwithstanding the foregoing,
      any provision of this Agreement may be amended by an agreement in writing
      entered into by Holdings, the Parent Borrower, each Foreign Subsidiary Borrower
      (but only to the extent such waiver, amendment or modification relates to such
      Foreign Subsidiary Borrower), the Required Lenders and the Administrative Agent
      (and, if their rights or obligations are affected thereby, the Issuing Bank
      and
      the Swingline Lender) if (i) by the terms of such agreement the Commitment
      of
      each Lender not consenting to the amendment provided for therein shall terminate
      upon the effectiveness of such amendment and (ii) at the time such amendment
      becomes effective, each Lender not consenting thereto receives payment in full
      of the principal of and interest accrued on each Loan made by it and all other
      amounts owing to it or accrued for its account under this
      Agreement.

     

    SECTION
      10.03. Expenses;
      Indemnity; Damage Waiver.
      (a)
 Holdings, the Parent Borrower and each Foreign Subsidiary Borrower,
      jointly and severally, shall pay (i) all reasonable out-of-pocket expenses
      incurred by the Administrative Agent and its Affiliates, including the
      reasonable fees, charges and disbursements of one counsel in each applicable
      jurisdiction for the Administrative Agent, in connection with the syndication
      of
      the credit facilities provided for herein, due diligence investigation, the
      preparation and administration of the Loan Documents or any amendments,
      modifications or waivers of the provisions thereof (whether or not the
      transactions contemplated hereby or thereby shall be consummated), (ii) all
      reasonable out-of-pocket expenses incurred by the Issuing Bank in connection
      with the issuance, amendment, renewal or extension of any Letter of Credit
      or
      any demand for payment thereunder and (iii) all out-of-pocket expenses incurred
      by the Administrative Agent, the Issuing Bank or any Lender, including the
      fees,
      charges and disbursements of any counsel for the Administrative Agent, the
      Issuing Bank or any Lender, in connection with the enforcement or protection
      of
      its rights in connection with the Loan Documents, including its rights under
      this Section, or in connection with the Loans made or Letters of Credit issued
      hereunder, including all such out-of-pocket expenses incurred during any
      workout, restructuring or negotiations in respect of such Loans or Letters
      of
      Credit.

     

    (b) Holdings,
      the Parent Borrower and each Foreign Subsidiary Borrower, jointly and severally,
      shall indemnify the Administrative Agent, the Issuing 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    112

     

    

    Bank
      and
      each Lender, and each Related Party of any of the foregoing Persons (each such
      Person being called an "Indemnitee")
      against, and hold each Indemnitee harmless from, any and all losses, claims,
      damages, liabilities and related expenses, including the fees, charges and
      disbursements of any counsel for any Indemnitee, incurred by or asserted against
      any Indemnitee arising out of, in connection with, or as a result of
      (i) the execution or delivery of any Loan Document or any other agreement
      or instrument contemplated hereby, the performance by the parties to the Loan
      Documents of their respective obligations thereunder or the consummation of
      the
      Transactions or any other transactions contemplated hereby, (ii) any Loan
      or Letter of Credit or the use of the proceeds therefrom (including any refusal
      by the Issuing Bank to honor a demand for payment under a Letter of Credit
      if
      the documents presented in connection with such demand do not strictly comply
      with the terms of such Letter of Credit), (iii) any actual or alleged
      presence or release of Hazardous Materials on or from any Mortgaged Property
      or
      any other property currently or formerly owned or operated by the Parent
      Borrower or any of its Subsidiaries, or any Environmental Liability related
      in
      any way to the Parent Borrower or any of its Subsidiaries, or (iv) any actual
      or
      prospective claim, litigation, investigation or proceeding relating to any
      of
      the foregoing, whether based on contract, tort or any other theory and
      regardless of whether any Indemnitee is a party thereto; provided
      that
      such indemnity shall not, as to any Indemnitee, be available to the extent
      that
      such losses, claims, damages, liabilities or related expenses are determined
      by
      a court of competent jurisdiction by final and nonappealable judgment to have
      resulted from the gross negligence or wilful misconduct of such
      Indemnitee.

     

    (c) To
      the
      extent that Holdings, the Parent Borrower and the Foreign Subsidiary Borrowers
      fail to pay any amount required to be paid by it to the Administrative Agent,
      the Issuing Bank or the Swingline Lender under paragraph (a) or (b) of
      this Section, each Lender severally agrees to pay to the Administrative Agent,
      the Issuing Bank or the Swingline Lender, as the case may be, such Lender's
      pro
      rata share (determined as of the time that the applicable unreimbursed expense
      or indemnity payment is sought) of such unpaid amount; provided
      that the
      unreimbursed expense or indemnified loss, claim, damage, liability or related
      expense, as the case may be, was incurred by or asserted against the
      Administrative Agent, the Issuing Bank or the Swingline Lender in its capacity
      as such. For purposes hereof, a Lender's "pro rata share" shall be determined
      based upon its share of the sum of the total Revolving Exposures, outstanding
      Term Loans and unused Commitments at the time.

     

    (d) To
      the
      extent permitted by applicable law, none of Holdings, the Parent Borrower or
      any
      Foreign Subsidiary Borrower shall assert, and each hereby waives, any claim
      against any Indemnitee, on any theory of liability, for special, indirect,
      consequential or punitive damages (as opposed to direct or actual damages)
      arising out of, in connection with, or as a result of, this Agreement or any
      agreement or instrument contemplated hereby, the Transactions, any Loan or
      Letter of Credit or the use of the proceeds thereof.

     

    (e) All
      amounts due under this Section shall be payable promptly after written demand
      therefor.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    113

     

    

    (f) Neither
      Heartland nor any director, officer, employee, stockholder or member, as such,
      of any Loan Party or Heartland shall have any liability for the Obligations
      or
      for any claim based on, in respect of or by reason of the Obligations or their
      creation; provided
      that the
      foregoing shall not be construed to relieve any Loan Party of its Obligations
      under any Loan Document.

     

    SECTION
      10.04. Successors
      and Assigns.
      (a)  The provisions of this Agreement shall be binding upon and inure
      to the benefit of the parties hereto and their respective successors and assigns
      permitted hereby (including any Affiliate of the Issuing Bank that issues any
      Letter of Credit), except that none of Holdings, the Parent Borrower or any
      Foreign Subsidiary Borrower may assign or otherwise transfer any of its rights
      or obligations hereunder without the prior written consent of each Lender (and
      any attempted assignment or transfer by the Parent Borrower or any Foreign
      Subsidiary Borrower without such consent shall be null and void). Nothing in
      this Agreement, expressed or implied, shall be construed to confer upon any
      Person (other than the parties hereto, their respective successors and assigns
      permitted hereby (including any Affiliate of the Issuing Bank that issues any
      Letter of Credit) and, to the extent expressly contemplated hereby, the Related
      Parties of each of the Administrative Agent, the Issuing Bank and the Lenders)
      any legal or equitable right, remedy or claim under or by reason of this
      Agreement.

     

    (b) Any
      Lender may assign to one or more assignees all or a portion of its rights and
      obligations under this Agreement (including all or a portion of its Commitment
      and the Loans at the time owing to it); provided
      that
      (i) except in the case of an assignment to a Lender or a Lender Affiliate,
      each of the Parent Borrower, each Foreign Subsidiary Borrower (but only to
      the
      extent such assignment relates to Foreign Currency Commitments or Foreign
      Currency Loans relating to such Foreign Subsidiary Borrower) and the
      Administrative Agent (and, in the case of an assignment of all or a portion
      of a
      Revolving Commitment or any Lender's obligations in respect of its LC Exposure
      or Swingline Exposure, the Issuing Bank and the Swingline Lender) must give
      their prior written consent to such assignment (which consent shall not be
      unreasonably withheld or delayed), (ii) except in the case of an assignment
      to a
      Lender or a Lender Affiliate or an assignment of the entire remaining amount
      of
      the assigning Lender's Commitment or Loans, the amount of the Commitment or
      Loans of the assigning Lender subject to each such assignment (determined as
      of
      the date the Assignment and Acceptance with respect to such assignment is
      delivered to the Administrative Agent) shall not be less than (x) in the
      case of Revolving Commitments and Revolving Loans, $5,000,000, and (y) in
      the case of Tranche D Commitments and Tranche D Loans, $1,000,000
      unless each of the Parent Borrower, each Foreign Subsidiary Borrower (but only
      to the extent such assignment relates to Foreign Currency Commitments or Foreign
      Currency Loans relating to such Foreign Subsidiary Borrower) and the
      Administrative Agent otherwise consent, (iii) each partial assignment shall
      be
      made as an assignment of a proportionate part of all the assigning Lender's
      rights and obligations under this Agreement, except that this clause (iii)
      shall
      not be construed to prohibit the assignment of a proportionate part of all
      the
      assigning Lender's rights and obligations in respect of one Class of Commitments
      or Loans, (iv) notwithstanding anything to the contrary, assignments by any
      Revolving Lender of any portion of its Revolving Commitments or 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    114

     

    

    any
      portion of Revolving Loans must include a ratable portion of its Foreign
      Currency Commitments and ratable portion of its Foreign Currency Loans and
      visa
      versa, (v) the parties to each assignment shall execute and deliver to the
      Administrative Agent an Assignment and Acceptance, together with a processing
      and recordation fee of $3,500, and (vi) the assignee, if it shall not be a
      Lender, shall deliver to the Administrative Agent an Administrative
      Questionnaire; and provided further
      that any
      consent of the Parent Borrower or any Foreign Subsidiary Borrower otherwise
      required under this paragraph shall not be required if an Event of Default
      under
      Article VII has occurred and is continuing. Subject to acceptance and recording
      thereof pursuant to paragraph (d) of this Section, from and after the
      effective date specified in each Assignment and Acceptance the assignee
      thereunder shall be a party hereto and, to the extent of the interest assigned
      by such Assignment and Acceptance, have the rights and obligations of a Lender
      under this Agreement (provided
      that any
      liability of the Parent Borrower or any Foreign Subsidiary Borrower to such
      assignee under Section 2.15, 2.16 or 2.17 shall be limited to the amount, if
      any, that would have been payable thereunder by the Parent Borrower or any
      Foreign Subsidiary Borrower in the absence of such assignment), and the
      assigning Lender thereunder shall, to the extent of the interest assigned by
      such Assignment and Acceptance, be released from its obligations under this
      Agreement (and, in the case of an Assignment and Acceptance covering all of
      the
      assigning Lender's rights and obligations under this Agreement, such Lender
      shall cease to be a party hereto but shall continue to be entitled to the
      benefits of Sections 2.15, 2.16, 2.17 and 10.03). Any assignment or
      transfer by a Lender of rights or obligations under this Agreement that does
      not
      comply with this paragraph shall be treated for purposes of this Agreement
      as a
      sale by such Lender of a participation in such rights and obligations in
      accordance with paragraph (e) of this Section.

     

    (c) The
      Administrative Agent, acting for this purpose as an agent of the Parent Borrower
      and the Foreign Subsidiary Borrowers, shall maintain at one of its offices
      in
      The City of New York a copy of each Assignment and Acceptance delivered to
      it and a register for the recordation of the names and addresses of the Lenders,
      and the Commitment of, and principal amount of the Loans and LC Disbursements
      owing to, each Lender pursuant to the terms hereof from time to time (the
      "Register").
      The
      entries in the Register shall be conclusive, and Holdings, the Parent Borrower,
      the Foreign Subsidiary Borrowers, the Administrative Agent, the Issuing Bank
      and
      the Lenders may treat each Person whose name is recorded in the Register
      pursuant to the terms hereof as a Lender hereunder for all purposes of this
      Agreement, notwithstanding notice to the contrary. The Register shall be
      available for inspection by the Parent Borrower, the Foreign Subsidiary
      Borrowers, the Issuing Bank and any Lender, at any reasonable time and from
      time
      to time upon reasonable prior notice.

     

    (d) Upon
      its
      receipt of a duly completed Assignment and Acceptance executed by an assigning
      Lender and an assignee, the assignee's completed Administrative Questionnaire
      (unless the assignee shall already be a Lender hereunder), the processing and
      recordation fee referred to in paragraph (b) of this Section and any
      written consent to such assignment required by paragraph (b) of this
      Section, the Administrative Agent shall accept such Assignment and Acceptance
      and record the information contained therein in the Register. No assignment
      shall be effective for 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    115

     

    

    purposes
      of this Agreement unless it has been recorded in the Register as provided in
      this paragraph.

     

    (e) Any
      Lender may, without the consent of the Parent Borrower or any Foreign Subsidiary
      Borrower, the Administrative Agent, the Issuing Bank or the Swingline Lender,
      sell participations to one or more banks or other entities (a "Participant")
      in all
      or a portion of such Lender's rights and obligations under this Agreement
      (including all or a portion of its Commitment and the Loans owing to it);
provided
      that
      (i) such Lender's obligations under this Agreement shall remain unchanged,
      (ii) such Lender shall remain solely responsible to the other parties
      hereto for the performance of such obligations and (iii) Holdings, the
      Parent Borrower, the Foreign Subsidiary Borrowers, the Administrative Agent,
      the
      Issuing Bank and the other Lenders shall continue to deal solely and directly
      with such Lender in connection with such Lender's rights and obligations under
      this Agreement. Any agreement or instrument pursuant to which a Lender sells
      such a participation shall provide that such Lender shall retain the sole right
      to enforce the Loan Documents and to approve any amendment, modification or
      waiver of any provision of the Loan Documents; provided
      that
      such agreement or instrument may provide that such Lender will not, without
      the
      consent of the Participant, agree to any amendment, modification or waiver
      described in the first proviso to Section 10.02(b) that affects such
      Participant. Subject to paragraph (f) of this Section, the Parent Borrower
      and
      the Foreign Subsidiary Borrowers agree that each Participant shall be entitled
      to the benefits of Sections 2.15, 2.16 and 2.17 to the same extent as if it
      were
      a Lender and had acquired its interest by assignment pursuant to
      paragraph (b) of this Section. To the extent permitted by law, each
      Participant also shall be entitled to the benefits of Section 10.08 as
      though it were a Lender, provided such Participant agrees to be subject to
      Section 2.18(c) as though it were a Lender.

     

    (f) A
      Participant shall not be entitled to receive any greater payment under Section
      2.15 or 2.17 than the applicable Lender would have been entitled to receive
      with
      respect to the participation sold to such Participant, unless the sale of the
      participation to such Participant is made with the prior written consent of
      the
      Parent Borrower and, to the extent applicable, each relevant Foreign Subsidiary
      Borrower. A Participant that would be a Foreign Lender if it were a Lender
      shall
      not be entitled to the benefits of Section 2.17 unless the Parent Borrower
      and, to the extent applicable, each relevant Foreign Subsidiary Borrower is
      notified of the participation sold to such Participant and such Participant
      agrees, for the benefit of the Parent Borrower and, to the extent applicable,
      each relevant Foreign Subsidiary Borrower, to comply with Section 2.17(e) as
      though it were a Lender.

     

    (g) Any
      Lender may at any time pledge or assign a security interest in all or any
      portion of its rights under this Agreement to secure obligations of such Lender,
      including any pledge or assignment to secure obligations to a Federal Reserve
      Bank, and this Section shall not apply to any such pledge or assignment of
      a
      security interest; provided
      that no
      such pledge or assignment of a security interest shall release a Lender from
      any
      of its obligations hereunder or substitute any such pledgee or assignee for
      such
      Lender as a party hereto.

     

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    SECTION
      10.05. Survival.
      All
      covenants, agreements, representations and warranties made by the Loan Parties
      in the Loan Documents and in the certificates or other instruments delivered
      in
      connection with or pursuant to this Agreement or any other Loan Document shall
      be considered to have been relied upon by the other parties hereto and shall
      survive the execution and delivery of the Loan Documents and the making of
      any
      Loans and issuance of any Letters of Credit, regardless of any investigation
      made by any such other party or on its behalf and notwithstanding that the
      Administrative Agent, the Issuing Bank or any Lender may have had notice or
      knowledge of any Default or incorrect representation or warranty at the time
      any
      credit is extended hereunder, and shall continue in full force and effect as
      long as the principal of or any accrued interest on any Loan or any fee or
      any
      other amount payable under this Agreement is outstanding and unpaid or any
      Letter of Credit is outstanding and so long as the Commitments have not expired
      or terminated. The provisions of Sections 2.15, 2.16, 2.17 and 10.03 and Article
      VIII shall survive and remain in full force and effect regardless of the
      consummation of the transactions contemplated hereby, the repayment of the
      Loans, the expiration or termination of the Letters of Credit and the
      Commitments or the termination of this Agreement or any provision
      hereof.

     

    SECTION
      10.06. Counterparts;
      Integration; Effectiveness.
      This
      Agreement may be executed in counterparts (and by different parties hereto
      on
      different counterparts), each of which shall constitute an original, but all
      of
      which when taken together shall constitute a single contract. This Agreement,
      the other Loan Documents and any separate letter agreements with respect to
      fees
      payable to the Administrative Agent constitute the entire contract among the
      parties relating to the subject matter hereof and supersede any and all previous
      agreements and understandings, oral or written, relating to the subject matter
      hereof. Except as provided in Section 4.01, this Agreement shall become
      effective when it shall have been executed by the Administrative Agent and
      when
      the Administrative Agent shall have received counterparts hereof which, when
      taken together, bear the signatures of each of the other parties hereto, and
      thereafter shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and assigns. Delivery of an executed counterpart
      of a signature page of this Agreement by telecopy shall be effective as delivery
      of a manually executed counterpart of this Agreement.

     

    SECTION
      10.07. Severability.
      Any
      provision of this Agreement held to be invalid, illegal or unenforceable in
      any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such invalidity, illegality or unenforceability without affecting the validity,
      legality and enforceability of the remaining provisions hereof; and the
      invalidity of a particular provision in a particular jurisdiction shall not
      invalidate such provision in any other jurisdiction.

     

    SECTION
      10.08. Right
      of Setoff.
      If an
      Event of Default shall have occurred and be continuing, each Lender and each
      of
      its Affiliates is hereby authorized at any time and from time to time, to the
      fullest extent permitted by law, to set off and apply any and all deposits
      (general or special, time or demand, provisional or final) at any time held
      and
      other obligations at any time owing by such Lender or Affiliate to or for the
      credit or the account of the Parent Borrower or any Foreign Subsidiary Borrower
      against 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    117

     

    

    any
      of
      and all the obligations of the Parent Borrower or any Foreign Subsidiary
      Borrower now or hereafter existing under this Agreement held by such Lender,
      irrespective of whether or not such Lender shall have made any demand under
      this
      Agreement and although such obligations may be unmatured. The rights of each
      Lender under this Section are in addition to other rights and remedies
      (including other rights of setoff) which such Lender may have.

     

    SECTION
      10.09. Governing
      Law; Jurisdiction; Consent to Service of Process.
      (a)  This Agreement shall be construed in accordance with and governed
      by the law of the State of New York.

     

    (b) Each
      of
      Holdings, the Parent Borrower and each Foreign Subsidiary Borrower hereby
      irrevocably and unconditionally submits, for itself and its property, to the
      nonexclusive jurisdiction of the Supreme Court of the State of New York
      sitting in New York County and of the United States District Court of
      the Southern District of New York, and any appellate court from any
      thereof, in any action or proceeding arising out of or relating to any Loan
      Document, or for recognition or enforcement of any judgment, and each of the
      parties hereto hereby irrevocably and unconditionally agrees that all claims
      in
      respect of any such action or proceeding may be heard and determined in such
      New York State or, to the extent permitted by law, in such Federal court.
      Each of the parties hereto agrees that a final judgment in any such action
      or
      proceeding shall be conclusive and may be enforced in other jurisdictions by
      suit on the judgment or in any other manner provided by law. Nothing in this
      Agreement or any other Loan Document shall affect any right that the
      Administrative Agent, the Issuing Bank or any Lender may otherwise have to
      bring
      any action or proceeding relating to this Agreement or any other Loan Document
      against Holdings, the Parent Borrower, any of the Foreign Subsidiary Borrowers
      or their properties in the courts of any jurisdiction.

     

    (c) Each
      of
      Holdings, the Parent Borrower and each Foreign Subsidiary Borrower hereby
      irrevocably and unconditionally waives, to the fullest extent it may legally
      and
      effectively do so, any objection which it may now or hereafter have to the
      laying of venue of any suit, action or proceeding arising out of or relating
      to
      this Agreement or any other Loan Document in any court referred to in
      paragraph (b) of this Section. Each of the parties hereto hereby
      irrevocably waives, to the fullest extent permitted by law, the defense of
      an
      inconvenient forum to the maintenance of such action or proceeding in any such
      court.

     

    (d) Each
      party to this Agreement irrevocably consents to service of process in the manner
      provided for notices in Section 10.01. Nothing in this Agreement or any
      other Loan Document will affect the right of any party to this Agreement to
      serve process in any other manner permitted by law.

     

    SECTION
      10.10. WAIVER
      OF JURY TRIAL.
      EACH
      PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
      ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
      INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT
      OR THE 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    118

     

    

    TRANSACTIONS
      CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
      EACH
      PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
      OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
      WOULD
      NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
      (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
      ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
      CERTIFICATIONS IN THIS SECTION.

     

    SECTION
      10.11. Headings.
      Article
      and Section headings and the Table of Contents used herein are for convenience
      of reference only, are not part of this Agreement and shall not affect the
      construction of, or be taken into consideration in interpreting, this
      Agreement.

     

    SECTION
      10.12. Confidentiality.
      Each of
      the Administrative Agent, the Issuing Bank and the Lenders agrees to maintain
      the confidentiality of the Information (as defined below), except that
      Information may be disclosed (a) to its and its Lender Affiliates'
      directors, officers, employees and agents, including accountants, legal counsel
      and other advisors (it being understood that the Persons to whom such disclosure
      is made will be informed of the confidential nature of such Information and
      instructed to keep such Information confidential pursuant to the terms hereof),
      (b) to the extent requested by any regulatory authority, (c) to the
      extent required by applicable laws or regulations or by any subpoena or similar
      legal process, (d) to any other party to this Agreement, (e) in
      connection with the exercise of any remedies hereunder or any suit, action
      or
      proceeding relating to this Agreement or any other Loan Document or the
      enforcement of rights hereunder or thereunder, (f) subject to an agreement
      containing provisions substantially the same as those of this Section, to
      (i) any assignee of or Participant in, or any prospective assignee of or
      Participant in, any of its rights or obligations under this Agreement,
      (ii) any actual or prospective counterparty (or its advisors) to any swap
      or derivative transaction relating to the Parent Borrower, any Foreign
      Subsidiary Borrower and their respective obligations or (iii) any direct or
      indirect contractual counterparty (or its advisors) to any swap transaction
      relating to a Lender's obligations hereunder, (g) with the consent of the
      Parent Borrower or (h) to the extent such Information (i) is publicly
      available at the time of disclosure or becomes publicly available other than
      as
      a result of a breach of this Section or (ii) becomes available to the
      Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis
      from a source other than Holdings, the Parent Borrower or any Subsidiary
      (including the Receivables Subsidiary and the Saturn Subsidiary). For the
      purposes of this Section, "Information"
      means
      all information received from Holdings, the Parent Borrower or any Subsidiary
      (including the Receivables Subsidiary and the Saturn Subsidiary) relating to
      Holdings, the Parent Borrower or any Subsidiary (including the Receivables
      Subsidiary and the Saturn Subsidiary) or its business, other than any such
      information that is available to the Administrative Agent, the Issuing Bank
      or
      any Lender on a nonconfidential basis prior to disclosure by Holdings, the
      Parent Borrower or any Subsidiary (including the Receivables Subsidiary and
      the
      Saturn Subsidiary); provided
      that, in
      the case of information received from Holdings, the Parent Borrower or any
      

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    119

     

    

    Subsidiary
      (including the Receivables Subsidiary and the Saturn Subsidiary) after the
      date
      hereof, such information is clearly identified at the time of delivery as
      confidential. Any Person required to maintain the confidentiality of Information
      as provided in this Section shall be considered to have complied with its
      obligation to do so if such Person has exercised the same degree of care to
      maintain the confidentiality of such Information as such Person would accord
      to
      its own confidential information.

     

    SECTION
      10.13. Interest
      Rate Limitation.
      Notwithstanding anything herein to the contrary, if at any time the interest
      rate applicable to any Loan, together with all fees, charges and other amounts
      which are treated as interest on such Loan under applicable law (collectively
      the "Charges"),
      shall
      exceed the maximum lawful rate (the "Maximum
      Rate")
      which
      may be contracted for, charged, taken, received or reserved by the Lender
      holding such Loan in accordance with applicable law, the rate of interest
      payable in respect of such Loan hereunder, together with all Charges payable
      in
      respect thereof, shall be limited to the Maximum Rate and, to the extent lawful,
      the interest and Charges that would have been payable in respect of such Loan
      but were not payable as a result of the operation of this Section shall be
      cumulated and the interest and Charges payable to such Lender in respect of
      other Loans or periods shall be increased (but not above the Maximum Rate
      therefor) until such cumulated amount, together with interest thereon at the
      Federal Funds Effective Rate to the date of repayment, shall have been received
      by such Lender.

     

    SECTION
      10.14. Judgment
      Currency.
      (a)  The obligations hereunder of the Parent Borrower and the Foreign
      Subsidiary Borrowers and under the other Loan Documents to make payments in
      Dollars or in the Foreign Currencies, as the case may be, (the "Obligation
      Currency")
      shall
      not be discharged or satisfied by any tender or recovery pursuant to any
      judgment expressed in or converted into any currency other than the Obligation
      Currency, except to the extent that such tender or recovery results in the
      effective receipt by the Administrative Agent, the Collateral Agent or a Lender
      of the full amount of the Obligation Currency expressed to be payable to the
      Administrative Agent, Collateral Agent or Lender under this Agreement or the
      other Loan Documents. If, for the purpose of obtaining or enforcing judgment
      against the Parent Borrower, any Foreign Subsidiary Borrower or any other Loan
      Party in any court or in any jurisdiction, it becomes necessary to convert
      into
      or from any currency other than the Obligation Currency (such other currency
      being hereinafter referred to as the "Judgment
      Currency")
      an
      amount due in the Obligation Currency, the conversion shall be made, at the
      Dollar Equivalent of such amount, in each case, as of the date immediately
      preceding the day on which the judgment is given (such Business Day being
      hereinafter referred to as the "Judgment
      Currency Conversion Date").

     

    (b) If
      there
      is a change in the rate of exchange prevailing between the Judgment Currency
      Conversion Date and the date of actual payment of the amount due, the Parent
      Borrower and each Foreign Subsidiary Borrower, as the case may be, covenants
      and
      agrees to pay, or cause to be paid, such additional amounts, if any (but in
      any
      event not a lesser amount), as may be necessary to ensure that the amount paid
      in the Judgment Currency, when converted at the rate of exchange prevailing
      on
      the date of payment, will produce the amount of the Obligation Currency which
      could have been 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    120

     

    

    purchased
      with the amount of Judgment Currency stipulated in the judgment or judicial
      award at the rate of exchange prevailing on the Judgment Currency Conversion
      Date.

     

    (c) For
      purposes of determining the Dollar Equivalent, such amounts shall include any
      premium and costs payable in connection with the purchase of the Obligation
      Currency.

     

    SECTION
      10.15. Effectiveness
      of the Amendment and Restatement; Original Credit Agreement.
      This
      Agreement shall become effective on the Restatement Effective Date, and
      thereafter shall be binding upon and inure to the benefit of the parties hereto
      and the parties to the Original Credit Agreement and their respective successors
      and assigns. Until this Agreement becomes effective, the Original Credit
      Agreement shall remain in full force and effect and shall not be affected
      hereby. After the Restatement Effective Date, all obligations of Holdings,
      the
      Parent Borrower and the Foreign Subsidiary Borrowers under the Original Credit
      Agreement shall become obligations of Holdings, the Parent Borrower and the
      Foreign Subsidiary Borrowers hereunder, secured by the Liens granted under
      the
      Security Documents, and the provisions of the Original Credit Agreement shall
      be
      superseded by the provisions hereof. Except as otherwise expressly stated
      hereunder, the term of this Agreement is for all purposes deemed to have
      commenced on the Restatement Effective Date.Exhibit 10.2 - Fourth Amendment To Chief Executive Officer Employment Agreement

    Exhibit
      10.2

    

    Fourth
      Amendment To Chief Executive Officer Employment Agreement

    

    This
      Amendment modifies the Employment Agreement between Metaldyne
      Corporation (“Company”)
      and Timothy
      D. Leuliette
      (“Executive”) entered into with an Effective Date of January 1, 2001, as amended
      July 31, 2003 (“First Amendment”), March 31, 2004 (“Second Amendment”), and
      September 10, 2004 (“Third Amendment”). The Employment Agreement remains in
      effect in accordance with its terms, except as modified by the First, Second,
      and Third Amendments and this Fourth Amendment. In accordance with Section
      12 of
      the Employment Agreement, the parties have agreed to amend the Employment
      Agreement as follows:

    

    

    

    Section
      2
      of the Employment Agreement, as amended by the Second Amendment, is further
      amended by deleting the phrase “December 31, 2006” in the first sentence and
      substituting the phrase “December 31, 2008” in its place.

    

    

    

    Intending
      to be legally bound hereby, the parties have signed this Amendment to be
      effective January 31, 2006.

    

    Executive

    

               
      February 9, 2006                                                                                           
      /s/
      Timothy D. Leuliette    

                            
      Date                                                                                                       
      Timothy
      D. Leuliette

     

    
 

                                       
      METALDYNE CORPORATION

     

               
      February 9, 2006                                                                          By:    
      /s/ Jeffrey M. Stafeil         

                            
      Date

                                                                                                                      
      Its:     Executive Vice President

                                                                                                                                 
      and Chief Financial Officer

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