Document:

Exhibit 4.05

 

CUSIP
NO. 5252M0EM5

ISIN NO. US5252M0EM51

 

	
  REGISTERED

  	
   

  	
  PRINCIPAL AMOUNT:
  $699,000

  

No. R-1

 

LEHMAN BROTHERS HOLDINGS INC.

 

MEDIUM-TERM NOTE, SERIES I

 

FX BASKET-LINKED NOTE
 DUE MARCH 31, 2011

 

 

THIS
NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY OR A NOMINEE OF THE
DEPOSITORY.  UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55
WATER STREET, NEW YORK, NEW YORK) TO THE COMPANY (AS DEFINED BELOW) OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND
ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED
FORM (A “CERTIFICATED NOTE”), THIS GLOBAL SECURITY MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY
OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE
DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY
OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY.

 

 

LEHMAN BROTHERS HOLDINGS INC., a corporation duly organized and
existing under the laws of the State of Delaware (herein called the “Company,”
which term includes any successor corporation under the Indenture referred to
on the reverse hereof), for value received, hereby promises to pay to CEDE &
Co., or registered assigns, on the Maturity Date, an amount equal to
the Redemption Amount.

 

The “Maturity Date” is March 31, 2011, or if such day is
not a Business Day, on the next following Business Day.

 

The “Redemption
Amount” is the amount equal to the sum of the principal amount of the Notes
plus the Additional Amount, if any.

 

The “Additional
Amount” is a single U.S. dollar amount equal to the principal amount of the
notes multiplied by the product of the Upside Leverage times the Basket Return,
if the Basket Return is greater than zero, and the Downside Return Rate times
the product of -1 times the Basket Return, if the Basket Return is less than or
equal to zero; provided that the minimum Additional Amount payable on the notes
shall be zero.

 

The “Upsize
Leverage” is 100%.

 

The “Downside
Return Rate” is 55%.

 

The “Reference
Currencies” are the Brazilian Real (BRL), Russian Ruble (RUB), Indian Rupee
(INR), Chinese Renminbi (CNY) and South Korean Won (KRW).

 

The “Basket Return” equals the sum of the Weighted
Currency Returns for each Reference Currency.

 

The “Weighted
Currency Return” is, for each Reference Currency, the product of the
Weighting for such Reference Currency times a quotient, the numerator of which
is the difference of the Initial Reference Currency Rate for such Reference
Currency minus the Settlement Rate for such Reference Currency and the
denominator of which is the Initial Reference Currency Rate for such Reference
Currency.

 

The “Weighting”
and “Initial Reference Currency Rate” for each Reference Currency are as
follows:

 

	
  Reference Currency

  	
   

  	
  Weighting

  	
   

  	
  Initial Reference

  Currency Rate

  
	
  BRL

  	
   

  	
  20

  	
  %

  	
  1.7288

  
	
  RUB

  	
   

  	
  20

  	
  %

  	
  23.6088

  
	
  INR

  	
   

  	
  20

  	
  %

  	
  40.14

  
	
  CNY

  	
   

  	
  20

  	
  %

  	
  7.0252

  
	
  KRW

  	
   

  	
  20

  	
  %

  	
  985.30

  

 

The “Settlement
Rate” for each Reference Currency is the Reference Exchange Rate on the
Valuation Date, determined in accordance with the applicable Settlement Rate
Option (subject to the occurrence of a Disruption Event).

 

2

 

The “Reference
Exchange Rates” are, each Reference Currency, the spot exchange rates for that
Reference Currency quoted against the U.S. dollar, expressed as the number
units of the Reference Currency per one USD.

 

The “Valuation
Date” is March 28, 2011; provided that, upon the occurrence of a
Disruption Event with respect to a Reference Currency, the Valuation Date for
the affected Reference Currency may be postponed (as described in “Disruption
Events” below).

 

The “Issue
Date” is March 31, 2008.

 

If the
Calculation Agent determines that a Disruption Event relating to one or more of
the Reference Currencies is in effect on the scheduled Valuation Date, the
Calculation Agent will determine the Basket Return using:

 

·                                          for each Reference Currency that did not suffer a Disruption Event on
the scheduled Valuation Date, the Settlement Rate on the scheduled Valuation
Date, and

 

·                                          for each Reference Currency that did suffer a Disruption Event on the
scheduled Valuation Date, the Settlement Rate on the immediately succeeding
scheduled Valuation Business Day for such Reference Currency on which no
Disruption Event occurs or is continuing with respect to such Reference
Currency;

 

provided, however, that if a Disruption Event has occurred or is continuing
with respect to a Reference Currency on each of the three scheduled Valuation
Business Days following the scheduled Valuation Date, then (a) such third
scheduled Valuation Business Day shall be deemed the Valuation Date for the affected
Reference Currency; and (b) the Calculation Agent will determine the
Settlement Rate for the affected Reference Currency on such day in accordance
with Fallback Rate Observation Methodology.

 

For
purposes of the above, “scheduled Valuation Business Day” means a day that is
or, in the judgment of the Calculation Agent, should have been, a Valuation
Business Day for the affected Reference Currency.

 

A “Disruption
Event” means any of the following events as determined in good faith by the
Calculation Agent:

 

(A)                              the occurrence and/or existence of
an event on any day that has the effect of preventing or making impossible the
delivery of USD from accounts inside the Reference Currency Jurisdiction for
that Reference Currency to accounts outside that Reference Currency
Jurisdiction;

 

(B)                                the
occurrence of any event causing the Reference Exchange Rate for the Reference
Currency to be split into dual or multiple currency exchange rates; or

 

(C)                                the Settlement Rate being unavailable for the Reference Currency, or the
occurrence of an event (i) in the Reference Currency Jurisdiction for that
Reference Currency that materially disrupts the market for the Reference 

 

3

 

Currency
or (ii) that generally makes it impossible to obtain the Settlement Rate
for the Reference Currency, on the Valuation Date.

 

A “Valuation Business Day” means,
with respect to each Reference Currency, any day, other than a Saturday or
Sunday, that is neither a legal holiday nor a day on which commercial banks are
authorized or required by law, regulation or executive order to close
(including for dealings in foreign exchange in accordance with the practice of
the foreign exchange market) in the city or jurisdiction indicated in the table
below:

 

	
  Reference Currency

  	
   

  	
  Screen
  Reference

  	
   

  	
  Valuation
  Business Day

  
	
  BRL

  	
   

  	
  BRFR

  	
   

  	
  Brazilia, Rio de
  Janiero or São Paulo

  
	
  RUB

  	
   

  	
  EMTA

  	
   

  	
  Moscow

  
	
  INR

  	
   

  	
  RBIB

  	
   

  	
  Mumbai

  
	
  CNY

  	
   

  	
  SAEC

  	
   

  	
  Beijing

  
	
  KRW

  	
   

  	
  KFTC18

  	
   

  	
  Seoul

  

 

The “Settlement Rate Option” for the BRL is the
Brazilian Real/U.S. dollar offered rate for U.S. dollars, expressed as the
amount of Brazilian Reals per one U.S. dollar, for settlement in two Business
Days reported by the Banco Central do Brasil on SISBACEN Data System under
transaction code PTAX-800 (“Consulta de Cambio” or Exchange Rate Inquiry),
Option 5 ( “Cotacoes para Contabilidade” or Rates for Accounting Purposes),
which appears on Reuters Screen BRFR Page under the caption “Dolar PTAX”
at approximately 6:30 pm Sao Paolo time on the Valuation Date or such other
relevant date.  The
Settlement Rate Option for the RUB is the Russian Ruble/U.S. Dollar Specified
Rate, expressed as the amount of Russian Rubles per one U.S. Dollar, for
settlement in one Business Day, calculated by the Chicago Mercantile Exchange (“CME”)
and as published on CME’s website, which appears on the Reuters Screen EMTA
Page, at approximately 1:30 p.m., Moscow time, on the Valuation Date or
such other relevant date.  The Settlement
Rate Option for the INR is the Indian Rupee/U.S. dollar reference rate,
expressed as the amount of Indian Rupee per one U.S. dollar, for settlement in
two Business Days reported by the Reserve Bank of India which appears on the
Reuters Screen RBIB Page at approximately 2:30 p.m., Mumbai time, or
as soon thereafter as practicable on the on the Valuation Date or such other relevant date.  The Settlement Rate Option for the CNY is the
Chinese Renminbi/U.S. dollar official fixing rate, expressed as the amount of
Chinese Renminbi per one U.S. dollar, for settlement in two Business Days
reported by The State Administration of Foreign Exchange of the People’s
Republic of China, Beijing, which appears on the Reuters Screen SAEC Page opposite
the symbol “USDCNY=“ at approximately 5:00 p.m., Beijing time, on the
Valuation Date or other such relevant date. 
The Settlement Rate Option for the KRW is the South Korean Won/U.S.
Dollar market average Seoul rate, expressed as the amount of South Korean Won
per one U.S. Dollar, for settlement in two Business Days reported by the Korea
Financial Telecommunications and Clearing Corporation which appears on the
Reuters Screen KFTC18 Page to the right of the caption “USD Today” that is
available at approximately 5:30 p.m., Seoul time, on the Valuation Date or
as soon thereafter as practicable, but in no event later than 9:00 a.m.,
Seoul time, on the first Business Day following the relevant Valuation Date.

 

4

 

The screen or time of observation
indicated in relation to any Settlement Rate Option above shall be deemed to
refer to such screen or time of observation as modified or amended from time to
time, or to any substitute screen thereto.

 

The “Fallback
Rate Observation Methodology” means that the reference exchange
rate, Settlement Rate or other rate, as specified in the applicable pricing
supplement, in respect of a reference currency will equal the noon buying rate
in New York for cable transfers in foreign currencies as announced by the
Federal Reserve Bank of New York for customs purposes (the “Noon Buying Rate”)
on the relevant Valuation Date or such other date specified in the applicable
pricing supplement. If the Noon Buying Rate is not announced on that date, the
Reference Exchange Rate, Settlement Rate or other rate for such Reference Currency
will be calculated on the basis of the arithmetic mean of the applicable spot
quotations received by the Calculation Agent at approximately 10:00 a.m.,
New York City time, on the Valuation Business Day next succeeding the Valuation
Date or such other date specified in the applicable pricing supplement, for the
purchase or sale for deposits in the reference currency by the New York offices
of three leading banks engaged in the interbank market (selected in the sole
discretion of the Calculation Agent) (the “Reference Banks”). If fewer than
three Reference Banks provide spot quotations, then the Reference Exchange
Rate, Settlement Rate or other rate, as applicable, will be calculated on the
basis of the arithmetic mean of the applicable spot quotations received by the
Calculation Agent at approximately 10:00 a.m., New York City time, on the
relevant date from two Reference Banks (selected in the sole discretion of the
Calculation Agent), for the purchase or sale for deposits in the Reference
Currency. If these spot quotations are available from only one Reference Bank,
then the Calculation Agent, in its sole discretion, will determine whether that
quotation is reasonable to be used. If no spot quotation is available, then the
Reference Exchange Rate, Settlement Rate or other rate, as applicable, for such
Reference Currency will be determined by the Calculation Agent in good faith
and in a commercially reasonable manner.

 

A “Business Day”, notwithstanding any provision in the Indenture, is
any day that is not is not a Saturday or Sunday and that is not a day on which
banking institutions in New York City generally are authorized or obligated by
law or executive order to be closed.

 

The “Calculation Agent” means Lehman Brothers Inc.

 

Except as provided below, the Redemption Amount may, at the option of
the Company, be made by check mailed to the person entitled thereto at such
person’s address as it appears on the registry books of the Company.

 

Payment of the Redemption Amount will be made in immediately available
funds in accordance with the normal procedures of the Trustee (or any duly
appointed Paying Agent).

 

The Company will pay any administrative costs imposed by banks in making payments in
immediately available funds, but any tax, assessment or governmental charge
imposed upon payments hereunder, including, without limitation, any withholding
tax, will be borne by the Holder hereof.

 

References herein to “U.S. dollars” or “U.S.$” or “$”
or “USD” are to the coin or currency of the United States as at the time of
payment is legal tender for the payment of public and private debts.

 

5

 

REFERENCE IS
HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE
HEREOF.  SUCH FURTHER PROVISIONS SHALL FOR
ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

 

This Note shall not be
valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been signed by the Trustee under the
Indenture.

 

6

 

IN WITNESS
WHEREOF, Lehman Brothers Holdings Inc. has caused this instrument to be signed
by its Chairman of the Board, its President, its Vice Chairman, its Chief
Financial Officer, one of its Vice Presidents or its Treasurer, by manual or
facsimile signature under its corporate seal, attested by its Secretary or one
of its Assistant Secretaries by manual or facsimile signature.

 

Dated:  March 31, 2008

 

	
  [SEAL]

  	
  LEHMAN BROTHERS
  HOLDINGS INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Andrew Yeung

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Cindy Buckholz

  
	
   

  	
   

  	
  Title: 

  	
  Assistant Secretary

  
						

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

This is one of the
Securities of the series designated herein referred to in the within-mentioned
Indenture.

 

	
  CITIBANK, N.A.

  
	
   

  	
  as Trustee

  

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Officer

  

 

7

 

[REVERSE
OF NOTE]

 

LEHMAN BROTHERS
HOLDINGS INC.

MEDIUM-TERM NOTES,
SERIES I

FX BASKET-LINKED NOTE
 DUE MARCH 31, 2011

 

Section 1.  General.  This Note is one of a duly authorized series
of Notes of the Company designated as the Medium-Term Notes, Series I, FX Basket-Linked Note (herein called
the “Notes”).  The Notes are one of an indefinite
number of series of debt securities of the Company (collectively, the “Securities”)
issued or issuable under and pursuant to an indenture dated as of September 1,
1987, as amended and supplemented (the “Indenture”), duly executed and
delivered by the Company and Citibank, N.A., as Trustee (herein called the “Trustee”),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a description of the rights, limitations of rights, obligations,
duties and immunities thereunder of the Trustee, the Company and the holders of
the Securities.  The separate series of
Securities may be issued in various aggregate principal amounts, may mature at
different times, may bear interest (if any) at different rates, may be subject
to different redemption provisions or repurchase rights (if any), may be subject
to different sinking, purchase or analogous funds (if any), may be subject to
different covenants and Events of Default and may otherwise vary as in the
Indenture provided.

 

Section 2.  Principal Amount for Indenture Purposes.  For the purpose of determining whether
Holders of the requisite amount of Notes of this series outstanding under the
Indenture have made a demand, given a notice or waiver or taken any other
action, the principal amount of this Note will be deemed to be the principal
amount of this Note then outstanding.

 

Section 3.  Modification and Waivers.  The Indenture contains provisions permitting
the Company and the Trustee, with the consent of the Holders of not less than
66-2/3% in aggregate principal amount of each series of the Securities at the
time Outstanding to be affected, evidenced as in the Indenture provided, to
execute supplemental indentures adding any provisions to or changing in any
manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or modifying in any manner the rights of the holders of
the Securities of all such series; provided, however, that no such supplemental
indenture shall, among other things, (i) change the fixed maturity of any
Security, or reduce the Additional Amount or the principal amount thereof, or
reduce the rate or extend the time of payment of interest thereon or reduce any
premium or other amount payable on redemption, or make the Additional Amount or
the principal amount thereof, premium or other amount payable, if any, or
interest thereon payable in any coin or currency other than that herein above
provided, without the consent of the Holder of each Security so affected, or (ii) change
the place of payment on any Security, or impair the right to institute suit for
payment on any Security, or reduce the aforesaid percentage of Securities, the
holders of which are required to consent to any such supplemental indenture,
without the consent of the holders of each Security so affected.  It is also provided in the Indenture that,
prior to any declaration accelerating the maturity of any series of Securities,
the holders of a majority in aggregate principal amount of the Securities of
such series 

 

 

Outstanding may on behalf
of the holders of all the Securities of such series waive any past default or
Event of Default under the Indenture with respect to such series and its
consequences, except a default in the payment of interest, if any, on the
Additional Amount or the principal amount, or premium, if any, on any of the
Securities of such series, or in the payment of any sinking fund installment or
analogous obligation with respect to Securities of such series.  Any such consent or waiver by the Holder of
this Note shall be conclusive and binding upon such Holder and upon all future
holders and owners of this Note and any Notes of this series which may be
issued in exchange or substitution herefor, irrespective of whether or not any
notation thereof is made upon this Note or such other Notes of this series.

 

Section 4.  Obligations Unconditional.  No reference herein to the Indenture and no
provisions of this Note or of the Indenture shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the
Additional Amount or the principal amount on this Note at the place, at the
respective times, at the rate, and in the coin or currency herein prescribed.

 

Section 5.  Defeasance.  The Indenture contains provisions for the
discharge of the Indenture and defeasance at any time of the indebtedness on
this Note upon compliance by the Company with certain conditions set forth
therein, which provisions apply to this Note.

 

                                Section 6.  Authorized Form and Denominations.  The Notes of this series are issuable in
registered form, without coupons.  Each
Note will be issued initially as either a Global Security or a Certificated
Note, at the option of the Company, in denominations of $1,000 or whole
multiples of $1,000, either at the office or agency to be designated and
maintained by the Company for such purpose in the Borough of Manhattan, New
York City, pursuant to the provisions of the Indenture or at any of such other
offices or agencies as may be designated and maintained by the Company for such
purpose pursuant to the provisions of the Indenture, and in the manner and
subject to the limitations provided in the Indenture, but without the payment
of any service charge, except for any tax or other governmental charges imposed
in connection therewith.  Notes of this
series are exchangeable for a like aggregate principal amount of Notes of this
series of a different authorized denomination, except that Global Securities
will not be exchangeable for Certificated Notes of this series.

 

Section 7.  Registration of Transfer.  As provided in the Indenture and subject to
certain limitations as therein set forth, the transfer of this Note is
registrable in the Security Register, upon surrender of this Note for
registration of transfer, at the Corporate Trust Office or agency in a Place of
Payment for this Note, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar
requiring such written instrument of transfer duly executed by, the Holder
hereof or his attorney duly authorized in writing, and thereupon one or more
new Notes of this series, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

 

If at any time the
Depository notifies the Company that it is unwilling or unable to continue as
Depository or if at any time the Depository shall no longer be eligible under
the Indenture, the Company shall appoint a successor Depository.  If a successor Depository for the Notes of this
series is not appointed by the Company within 90 days after the Company
receives

 

 

such notice or becomes
aware of such ineligibility, the Company will issue, and the Trustee will
authenticate and deliver, Notes of this series in definitive form in an
aggregate principal amount equal to the principal amount of this Note.

 

No service charge
shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection therewith.

 

Prior to due
presentment of this Note for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the person in whose name
this Note is registered as the owner hereof for all purposes, and neither the
Company nor the Trustee nor any agent of the Company or of the Trustee shall be
affected by any notice to the contrary.

 

Section 8.  Events of Default.  If an Event of Default with respect to Notes
of this series shall occur and be continuing, the amount that may be declared
due and payable upon any acceleration of the notes will be determined by the
Calculation Agent for the period from and including the Issue Date to but
excluding the date of early repayment and will equal, for each note, the
Redemption Amount, calculated as the date of early repayment were the Maturity
Date. If a bankruptcy proceeding is commenced in respect of Lehman Brothers
Holdings, the claim of the beneficial owner of a note for the period from and
including the Issue Date to but excluding the date of early repayment will be
capped at the Redemption Amount, calculated as though the date of the
commencement of the proceeding were the Maturity Date.

 

Section 9.  No Recourse Against Certain Persons.  No recourse for the payment of the Additional
Amount or for any claim based hereon or otherwise in respect hereof, and no
recourse under or upon any obligation, covenant or agreement of the Company in
the Indenture or any Indenture supplemental thereto or in any Note, or because
of the creation of any indebtedness represented thereby, shall be had against
any incorporator, stockholder, officer or director, as such, past, present or
future, of the Company or of any successor corporation, either directly or
through the Company or any successor corporation, whether by virtue of any
constitution, statute or rule of law or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issue hereof, expressly waived
and released.

 

Section 10.  Defined
Terms.  All terms used but not
defined in this Note are used herein as defined in the Indenture.

 

Section 11.  GOVERNING LAW.  THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.Exhibit 10.1

SECOND
AMENDMENT AND WAIVER TO

AMENDED
AND RESTATED CREDIT AGREEMENT

 

THIS
SECOND AMENDMENT AND WAIVER TO AMENDED AND RESTATED CREDIT AGREEMENT, dated as of March 27, 2008 (this “Amendment”),
is made among SYMMETRY MEDICAL INC.,
a Delaware corporation (the “Borrower”), certain Subsidiaries of the
Borrower party hereto as Subsidiary Guarantors, and WACHOVIA BANK, NATIONAL ASSOCIATION (“Wachovia”), as administrative agent for the Lenders under
the Credit Agreement referenced below (in such capacity, the “Administrative
Agent”).

 

RECITALS

 

A.            The Borrower, the Subsidiary
Guarantors, the Lenders, the Administrative Agent and certain other agents are
parties to an Amended and Restated Credit Agreement, dated as of June 13,
2006 (the “Existing Credit Agreement” and, as previously amended and as
further amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”), providing for the availability of certain
credit facilities to the Borrower upon the terms and conditions set forth
therein.  Capitalized terms used herein
without definition shall have the meanings given to them in the Credit
Agreement.

 

B.            The Borrower has notified the
Administrative Agent and the Lenders that management believes that the
magnitude of the irregularities in its financial reporting arising in
connection with Sheffield (the “Sheffield Accounting Irregularities”)
will exceed the financial impact previously disclosed in connection with the
Waiver, Amendment and Term A-2 Loan Incremental Term Loan Amendment to Amended
and Restated Credit Agreement dated December 14, 2007 (the “December Waiver”).  The Borrower has informed the Administrative
Agent and the Lenders that the Sheffield Accounting Irregularities will have an
adverse financial impact on the Borrower’s 2007 consolidated financial
statements in an amount equal to approximately $50 million, which amount shall
be comprised, among other things, of the following nonrecurring, noncash losses
and charges: (i) a write-down of the value of the Borrower’s consolidated
tangible assets in an amount equal to approximately $11.4 million (the “Asset
Write-Down”), (ii) a charge of approximately $4.6 million resulting
from a re-valuation of the NOLs on the Borrower’s consolidated financial
statements (the “NOL Valuation Adjustment”) and (iii) an impairment
charge reducing the value of the Borrower’s consolidated goodwill by an amount
equal to approximately $35 million, each resulting in an Event of Default under
Section 9.1(o) of the Credit Agreement (collectively, the “Specified
Event of Default”).  The Borrower has
requested that the Required Lenders waive the Specified Event of Default and
amend Section 9.1(o) so that it applies only to the 2007 fiscal year.

 

C.            In addition, the Borrower has
notified the Administrative Agent and the Lenders that, as a result of the
adverse financial impact resulting from the Sheffield Accounting
Irregularities, the Borrower will be unable (i) to comply with the
financial covenants set forth in Sections 7.1 through 7.3 of the Credit
Agreement unless the Required Lenders agree that the amount of nonrecurring,
noncash losses and charges attributable to the Asset Write-Down and the NOL
Valuation Adjustment may be added-back to Consolidated Net Income to determine
Consolidated EBITDA (notwithstanding the limitations or restrictions included
in the definition of Consolidated EBITDA), (ii) to deliver its audited
financial statements for the 2007 fiscal year, 

 

 

as required by Section 6.1(b) of the Credit
Agreement on or before March 30, 2008 and (iii) to become a Current
Filer on or before March 30, 2008. 
The Borrower has requested that the Required Lenders agree that the
amount of nonrecurring, noncash losses and charges attributable to the Asset
Write-Down and the NOL Valuation Adjustment may be added back to Consolidated
Net Income to determine Consolidated EBITDA (notwithstanding the limitations or
restrictions included therein), that the audited financial statements for the
2007 fiscal year may be delivered on or before April 14, 2008 and that the
Borrower have an opportunity to become a Current Filer on or before April 14,
2008.

 

D.            The Administrative Agent and the
Lenders have agreed to waive the Specified Event of Default, amend Sections 9.1(n) and
9.1(o) and agree to the other requested items in accordance with, and
subject to, the terms and conditions set forth herein.

 

STATEMENT OF AGREEMENT

 

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

 

ARTICLE I

 

WAIVERS AND AMENDMENTS

 

The
Borrower and, based upon the representations and warranties contained herein
and subject to the satisfaction of the conditions precedent set forth in Article III  hereof,
the Administrative Agent and the Required Lenders hereby agree as follows:

 

1.1          Specified
Event of Default.  The Required
Lenders hereby waive the Specified Event of Default, but only to the extent
that no Event of Default under Section 9.1(n) or 9.1(o) of the
Credit Agreement (after giving effect to this Amendment) ever occurs and is
continuing.  This waiver shall be
effective only with regard to the Specified Event of Default and shall not act
as a waiver or consent with respect to any other Default or Event of Default
under the Credit Agreement or any other Credit Document.

 

1.2          Amendments.  Sections 9.1(n) and 9.1(o) of the
Credit Agreement are hereby amended and restated as follows:

 

(n)           The Borrower is not a Current Filer
at any time on or after April 14, 2008; or

 

(o)           The Required Lenders reasonably
determine, which determination may be made upon a public announcement by the
Borrower of estimated financial impact or on other information obtained by
them, that the accounting irregularities at Sheffield resulted in, with respect
to the financial statements for the 2007 fiscal year and all subsequent fiscal
years, any of the following: (i) a write-down of the value of the
Borrower’s consolidated tangible assets in 

 

2

 

excess of $11.4 million
in the aggregate by a material amount, (ii) any charge in excess of $4.6
million by a material amount resulting from a re-valuation of NOLs on the
Borrower’s consolidated financial statements in the aggregate, (iii) an
impairment charge reducing the value of the Borrower’s consolidated goodwill in
excess of $35 million in the aggregate by a material amount, or (iv) any
other adverse impact on revenues or earnings for the 2007 fiscal year or all
subsequent fiscal years in excess of $1 million in the aggregate.  For purposes of this Section 9.1(o) “material
amount” shall mean five percent (5%) or more.

 

1.3          Consolidated
EBITDA.  The Required Lenders hereby
agree that the nonrecurring, noncash losses and charges attributable to the
Asset Write-Down and the NOL Valuation Adjustment may be added back to
Consolidated Net Income to determine Consolidated EBITDA for any Reference
Period including the quarter ending December 31, 2007, provided
that the aggregate amount of such add-backs shall not exceed $16 million.  This waiver shall be effective only with
regard to the nonrecurring, noncash losses and charges attributable to the
Asset Write-Down and the NOL Valuation Adjustment and the Borrower shall not be
permitted to add-back any other nonrecurring, noncash losses or charges to
Consolidated Net Income to determine Consolidated EBITDA, including without
limitation any nonrecurring, noncash losses and charges attributable to the
Asset Write-Down and/or the NOL Valuation Adjustment  in
excess of $16 million, unless such losses or charges are otherwise permitted to
be added back by the definition of Consolidated EBITDA.

 

1.4          2007
Audit.  The Required Lenders hereby
agree to waive the requirement that the Borrower deliver the audited financial
statements for the 2007 fiscal year, as required by Section 6.1(b) of
the Credit Agreement, until April 14, 2008.  The Borrower acknowledges that the failure to
deliver audited financial statements complying with Section 6.1(b) of
the Credit Agreement on or before April 14, 2008 shall result in an Event
of Default.  This waiver shall be
effective only with regard to the audited financial statements for the 2007
fiscal year and shall not act as a waiver or consent with respect to the delivery
of any other financial statements.

 

1.5          Applicable
Percentage.  The Borrower hereby
acknowledges and agrees that, notwithstanding anything to the contrary, until
such time as the Borrower delivers a Compliance Certificate with respect to the
fiscal quarter ending March 31, 2008, as required by Section 6.2(a) of
the Credit Agreement, the applicable LIBOR Margin and Base Rate Margin will be
determined in accordance with Level I of definition of Applicable Percentage
(notwithstanding the actual Total Leverage Ratio).

 

ARTICLE II

 

REPRESENTATIONS AND WARRANTIES

 

To
induce the Administrative Agent (on behalf of itself and the Required Lenders)
to enter into this Amendment, each of the Borrower and the Subsidiary
Guarantors represents and warrants as follows:

 

3

 

2.1          Representations
and Warranties.  After giving effect
to this Amendment, each of the representations and warranties of the Borrower
and its Subsidiaries contained in the Credit Agreement and in the other Credit
Documents is true and correct on and as of the date hereof with the same effect
as if made on and as of the date hereof (except as permitted pursuant to Section 5.24)
of the Credit Agreement and except to the extent any such representation or
warranty is expressly stated to have been made as of a specific date, in which
case such representation or warranty is true and correct as of such date).

 

2.2          No
Default.  After giving effect to this
Amendment, no Default or Event of Default has occurred and is continuing.

 

ARTICLE III

 

EFFECTIVENESS

 

3.1          Conditions
to Effectiveness.  This Amendment
shall become effective as of the date hereof upon the satisfaction of the
following conditions precedent:

 

(a)           The
Administrative Agent shall have duly executed counterparts of this Amendment
from each party hereto either signed on behalf of such party or written
evidence satisfactory to the Administrative Agent (which may include telecopy
transmission of a signed signature page to this Agreement) that such party
has signed a counterpart of this Amendment;

 

(b)           The
Administrative Agent shall have paid all fees and expenses due in accordance
with Section 5.4 hereof and under the Credit Agreement required to have
been paid on or prior to the effectiveness of this Amendment.

 

(c)           The
Administrative Agent shall have received such other documents, certificates,
opinions, and instruments in connection with the transactions contemplated
hereby as it shall have reasonably requested.

 

ARTICLE IV

 

AFFIRMATION OF OBLIGATIONS

 

4.1          Affirmation
of Borrower and Subsidiary Guarantors. 
Each of the Borrower and each of the Subsidiary Guarantors that guaranty
any or all of the Obligations under the Existing Credit Agreement hereby
approves and consents to the transactions contemplated by this Amendment and
agrees that its obligations under the Existing Credit Agreement and the other
Credit Documents to which it is a party shall not be diminished as a result of
the execution of this Amendment.  This
acknowledgement by each of the Borrower and each such Subsidiary Guarantor is
made and delivered to induce the Lenders to enter into this Amendment, and each
of the Borrower and each such Subsidiary Guarantor acknowledges that the
Lenders would not enter into this Amendment in the absence of the
acknowledgements contained herein.

 

4

 

4.2          Liens.  Each of the Borrower and each of the
Subsidiary Guarantors party to the Existing Credit Agreement hereby ratifies
and confirms the grant of a security interest in and Lien on the Collateral
contained in the Security Documents to which each is a party that were executed
in connection with the Existing Credit Agreement, which security interest and
Lien shall continue in full force and effect without interruption, and shall
constitute the single grant of a security interest and Lien.

 

ARTICLE V

 

MISCELLANEOUS

 

5.1          Effect
of Amendment.  From and after the
effective date hereof, all references to the Credit Agreement set forth in any
other Credit Document or other agreement or instrument shall, unless otherwise
specifically provided, be references to the Existing Credit Agreement as
amended by this Amendment and as it may be further amended, modified, restated
or supplemented from time to time.  This
Amendment is limited as specified and shall not constitute or be deemed to
constitute an amendment, modification or waiver of any provision of the Credit
Agreement (including any schedule or exhibit) except as expressly set forth
herein.  Except as expressly amended
hereby or in the aforementioned Security Documents, the Credit Agreement and
the other Credit Documents shall remain in full force and effect in accordance
with their respective terms.

 

5.2          Credit
Documents.  The parties hereto
acknowledge and agree that this Amendment is a Credit Document for all purposes
under the Credit Agreement and the other Security Documents.

 

5.3          Governing
Law.  This Amendment shall be
governed by and construed and enforced in accordance with the laws of the State
of New York.

 

5.4          Expenses.  The Borrower agrees, on demand (i) to
pay all reasonable fees and expenses of counsel to the Administrative Agent,
and (ii) to reimburse the Administrative Agent for all reasonable
out-of-pocket costs and expenses, in each case, in connection with the
preparation, negotiation, execution and delivery of this Amendment.

 

5.5          Severability.  To the extent any provision of this Amendment
is prohibited by or invalid under the applicable law of any jurisdiction, such
provision shall be ineffective only to the extent of such prohibition or
invalidity and only in any such jurisdiction, without prohibiting or
invalidating such provision in any other jurisdiction or the remaining
provisions of this Amendment in any jurisdiction.

 

5.6          Successors
and Assigns.  This Amendment shall be
binding upon, inure to the benefit of and be enforceable by the respective
successors and permitted assigns of the parties hereto.

 

5.7          Construction.  The headings of the various sections and
subsections of this Amendment have been inserted for convenience only and shall
not in any way affect the meaning or construction of any of the provisions
hereof.

 

5

 

5.8          Counterparts;
Effectiveness.  This Amendment may be
executed in any number of counterparts and by different parties hereto on
separate counterparts, each of which when so executed and delivered shall be an
original, but all of which shall together constitute one and the same
instrument.  This Amendment shall become
effective upon the execution and delivery of a counterpart hereof by each of
the parties hereto.  A facsimile of a
counterpart executed by a party shall be acceptable temporary evidence of the
execution by that party of that counterpart.

 

 

 

 

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6

 

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

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SYMMETRY
  MEDICAL INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fred L. Hite

  
	
   

  	
   

  	
  Fred L. Hite

  
	
   

  	
   

  	
  Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SUBSIDIARY
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  RILEY
  MEDICAL INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fred L. Hite

  
	
   

  	
   

  	
  Fred L. Hite

  
	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SYMMETRY
  MEDICAL EVEREST LLC

  
	
   

  	
  By:
  Symmetry Medical USA, Inc., its Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fred L. Hite

  
	
   

  	
   

  	
  Fred L. Hite

  
	
   

  	
   

  	
  Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TNCO,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fred L. Hite

  
	
   

  	
   

  	
  Fred L. Hite

  
	
   

  	
   

  	
  Vice President

  
				

 

 

 

 

(signatures
continue on following page)

 

 

Signature
Page to Second Amendment and Waiver

to
Amendment and Restated Credit Agreement

 

 

	
   

  	
  SPECIALTY
  SURGICAL INSTRUMENTATION, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fred L. Hite

  
	
   

  	
   

  	
  Fred L. Hite

  
	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UCA,
  LLC

  
	
   

  	
  By:
  Symmetry Medical USA, Inc., its Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fred L. Hite

  
	
   

  	
   

  	
  Fred L. Hite

  
	
   

  	
   

  	
  Senior Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SYMMETRY
  MEDICAL SSI REAL ESTATE, LLC

  
	
   

  	
  By:
  Symmetry Medical USA, Inc., its Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fred L. Hite

  
	
   

  	
   

  	
  Fred L. Hite

  
	
   

  	
   

  	
  Senior Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SYMMETRY
  MEDICAL USA INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fred L. Hite

  
	
   

  	
   

  	
  Fred L. Hite

  
	
   

  	
   

  	
  Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SYMMETRY
  MEDICAL INTERNATIONAL INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fred L. Hite

  
	
   

  	
   

  	
  Fred L. Hite

  
	
   

  	
   

  	
  Chief Financial
  Officer

  

 

 

 

 

(signatures continue on
following page)

 

 

Signature
Page to Second Amendment and Waiver

to
Amendment and Restated Credit Agreement

 

 

	
   

  	
  METTIS
  GROUP INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fred L. Hite

  
	
   

  	
   

  	
  Fred L. Hite

  
	
   

  	
   

  	
  Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ULTREXX,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fred L. Hite

  
	
   

  	
   

  	
  Fred L. Hite

  
	
   

  	
   

  	
  Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JET
  ENGINEERING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fred L. Hite

  
	
   

  	
   

  	
  Fred L. Hite

  
	
   

  	
   

  	
  Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SMA
  REAL ESTATE, LLC

  
	
   

  	
  By:
  Symmetry Medical USA, Inc., its Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fred L. Hite

  
	
   

  	
   

  	
  Fred L. Hite

  
	
   

  	
   

  	
  Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SYMMETRY
  MEDICAL NEW BEDFORD, LLC

  
	
   

  	
  By:
  TNCO, Inc., Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fred L. Hite

  
	
   

  	
   

  	
  Fred L. Hite

  
	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SYMMETRY
  MEDICAL NEW BEDFORD REAL ESTATE, LLC

  
	
   

  	
  By:
  TNCO, Inc., Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fred L. Hite

  
	
   

  	
   

  	
  Fred L. Hite

  
	
   

  	
   

  	
  Vice President

  

 

 

 

 

 

(signatures continue on following page)

 

 

Signature
Page to Second Amendment and Waiver

to
Amendment and Restated Credit Agreement

 

 

	
   

  	
  WACHOVIA
  BANK, NATIONAL ASSOCIATION, as Administrative Agent and on behalf of
  the Required Lenders pursuant to written authorization

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kirk Tesch

  
	
   

  	
   

  	
  Kirk Tesch

  
	
   

  	
   

  	
  Vice President

  

 

 

 

 

 

(signatures continue on following page)

 

 

Signature
Page to Second Amendment and Waiver

to
Amendment and Restated Credit Agreement

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