Document:

Unassociated Document

    EXHIBIT
10.30

    

    EXECUTION
VERSION

    

    AMENDMENT
NO. 3

    TO
CREDIT AND SECURITY AGREEMENT

    

     

    This Amendment No. 3 to Credit and
Security Agreement (this “Amendment”), dated as of
October 9, 2009, is made by and among STONERIDGE, INC., an Ohio
corporation (the “Parent”), STONERIDGE ELECTRONICS, INC.,
a Texas corporation (“Electronics”), STONERIDGE CONTROL DEVICES,
INC., a Massachusetts corporation (“Controls”), STONERIDGE-POLLAK LIMITED, an
English corporation (the “English Borrower”), STONERIDGE ELECTRONICS
LIMITED., a Scottish corporation (the “Scottish Borrower” and
together with the English Borrower, the “UK Borrowers”), STONERIDGE FAR EAST LLC, a
Delaware limited liability company (“Far East”), as Guarantor,
various financial institutions which are a party hereto, NATIONAL CITY BANK, a national
banking association (“National
City Bank”), as Lead Arranger and the Issuer (as hereinafter defined),
and NATIONAL CITY BANK,
successor to National City Bank Business Credit, Inc, as administrative agent
and collateral agent (the “Agent”).

     

    WITNESSETH:

     

    WHEREAS, the Borrowers (as
hereinafter defined) have been extended certain financial accommodations
pursuant to that certain Credit and Security Agreement, dated as of
November 2, 2007, among the Borrowers, various financial institutions (the
“Lenders”), National
City Bank, as Lead Arranger and LC Issuer and National City Business Credit,
Inc., an Ohio corporation , as Agent, as amended by that certain Amendment
No. 1 to Credit and Security Agreement and that certain Amendment
No. 2 to Credit and Security Agreement (as so amended, and as further
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”);

     

    WHEREAS, the UK Borrowers (as
hereinafter defined) have not borrowed any Revolving Advances (as hereinafter
defined) under the Credit Agreement and therefore are not  currently
liable to repay and  have never been liable to repay any Obligations
(as hereinafter defined) under the Credit Agreement or the Other Loan Documents
(as hereinafter defined), the Borrowers have requested that each UK Borrower be
removed from the Credit Agreement and the Other Loan Documents as a “Borrower”,
“Guarantor”, “Loan Party” and “Obligor”;

     

    WHEREAS, the Borrowers have
requested modification of the Credit Agreement to permit Parent to enter into an
asset purchase and contribution agreement pursuant to which Parent would
purchase a fifty-one percent (51%) membership interest in a limited liability
company, plus an option to purchase the remaining forty-nine percent (49%)
membership interest in such limited liability company as described in this
Amendment;

     

    WHEREAS, the Borrowers have
requested modification of the Credit Agreement to permit Parent to guarantee
certain obligations of such limited liability company; and

     

    WHEREAS, the parties hereto
desire to amend certain provisions of
the Credit Agreement as outlined herein;

     

    NOW THEREFORE, in
consideration of the mutual promises and agreements contained herein and other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, each of the parties hereto hereby agrees as follows:

     

    Section 1.                                DEFINED TERMS.

     

    Each
capitalized term used herein and not otherwise defined herein shall have the
meaning ascribed to such term in the Credit Agreement, as amended by this
Amendment.

     

    
      
         

      

      
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    Section
2                                AMENDMENT TO THE CREDIT
AGREEMENT

     

    The
Credit Agreement is hereby amended as follows:

     

    2.1           Amendment of Certain Defined
Terms.  Section 1.3 (Definitions) of the Credit Agreement
is hereby amended by replacing the existing definitions of “Cash Concentration
Account” and “Cash Concentration Account Agreement” with the following
definitions in proper alphabetical order:

     

    “Cash Concentration Account”
shall mean, with respect to the Borrowers, at the discretion of the Agent,
either: (i) any of those certain commercial deposit accounts at National City
Bank (including, in each instance where named in this Agreement, any successor
of National City Bank), in the name of the Agent, designated as “National City
Business Credit, Inc. (for the benefit of itself and the Issuer) Borrowing Agent
Cash Concentration Account” pursuant to a Cash Concentration Account Agreement
(a “Non-Borrower Titled Cash
Concentration Account”); or (ii) such other depository accounts as may be
established and maintained by any of the Borrowers, the Borrowing Agent or any
other applicable Domestic Obligor at National City Bank from time to time,
pursuant to a Deposit Account Agreement and/or a Blocked Account Agreement, each
of which, in either case, shall be: (a) without liability by the Agent or
National City Bank to pay interest thereon, (b) the funds within which
shall immediately become the sole and exclusive property of the Agent for the
pro rata benefit of the Secured Creditors and subject to the sole and exclusive
control off the Agent, and (c) from which account the Agent shall have the
irrevocable and exclusive right to withdraw funds.

     

    “Cash Concentration Account
Agreement” shall mean an agreement entered into by the Agent and National
City Bank with respect to each Non-Borrower Titled Cash Concentration Account,
in form and substance satisfactory to the Agent and acknowledged by the
Borrowers, the Borrowing Agent or other Domestic Obligor, as applicable, whereby
National City Bank will agree to maintain the Non-Borrower Titled Cash
Concentration Account on behalf of the Agent.

     

    2.2           Addition of Certain Defined
Terms.  Section 1.3 (Definitions) of the Credit Agreement
is hereby amended to add the following definition in proper alphabetical
order:

     

    “New Bolton” shall mean New
Bolton Conductive Systems, LLC, a Michigan limited liability
company.

     

    “New Bolton Acquisition” shall
mean the transaction, to be consummated on the  New Bolton Acquisition
Date , whereby the Parent acquires, pursuant to the terms and conditions of the
New Bolton Acquisition Documents, (i) fifty-one percent (51%) of all of the
outstanding membership interest of New Bolton, and (ii) an option, exercisable
on or after January 1, 2013, but not later than December 31, 2013, to acquire
forty-nine percent (49%) of the outstanding membership interest of New Bolton
from Bolton Conductive Systems, LLC.

     

    “New Bolton Acquisition
Agreement” shall mean the Asset Purchase and Contribution Agreement among
the Parent, Bolton Conductive Systems, LLC, Martin Kochis, Joseph Malecke,
Bolton Investments, LLC, a Michigan limited liability company, William Bolton
and New Bolton, as in existence as of the New Bolton Acquisition
Date.

     

    “New Bolton Acquisition Date”
shall mean the date, not later than October 16, 2009, of the closing of the
New Bolton Acquisition, as determined by the Parent and the other parties to the
New Bolton Acquisition Documents.

     

    “New Bolton Acquisition
Documents” shall mean the New Bolton Acquisition Agreement, and all
agreements, instruments and documents executed or to be executed pursuant
thereto or in connection therewith, as in existence as of the New Bolton
Acquisition Date.

    
      
         

      

      
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    “New Bolton Loan Documents”
shall mean that certain loan agreement, to be dated on or about the New Bolton
Acquisition Date, between New Bolton and Comerica Bank, pursuant to which New
Bolton will borrow an aggregate principal amount of up to Five Million Dollars
($5,000,000) from Comerica Bank, and all agreements, instruments and documents
executed pursuant thereto or in connection therewith.

     

    “Parent Guaranty” shall mean
that certain guaranty agreement of the Parent, in form and substance
satisfactory to the Agent, to be dated as of the date of the New Bolton Loan
Documents, in favor of Comerica Bank, pursuant to which the Parent guarantees
the obligations of New Bolton owing to Comerica Bank pursuant to the New Bolton
Loan Documents.

     

    2.3           Addition of New Section 1.11
Regarding Removal of UK Borrowers.  Section 1.11 of the
Credit Agreement is hereby added as follows:

     

    1.11           Removal
of UK Borrowers.

     

    Due to the fact that no Foreign
Borrower other than the UK Borrowers has existed hereunder, and no UK
Borrower  has borrowed or intends to borrow any Revolving Advances
hereunder nor incurred or intends to incur any Obligations, and notwithstanding
any provision of this Agreement to the contrary, each UK Borrower is hereby
deleted and removed from this Agreement and shall no longer constitute, and
shall not have any of the rights or obligations of, a “Borrower”, “Guarantor”,
“Loan Party” or “Obligor” hereunder or under the Other Loan
Documents.  All references to “UK Borrower”, “Eligible UK Inventory”,
“Eligible UK Receivables”, “Foreign Borrower”, “Foreign Borrower Sublimit”, “UK
Assets”, “UK Borrower Sublimit”, “UK Collateral”, “UK Collateralized Loan
Amount”, “UK Formula Amount” or “UK Security Documents” contained herein or in
any Other Loan Document shall have no meaning, force or effect.  There
shall be no UK Borrowers or Foreign Borrowers under this Agreement.

     

    2.4           Addition of New Section 1.12
Regarding Classification of New Bolton.  Section 1.12 of
the Credit Agreement is hereby added as follows:

     

    1.12           Classification
of New Bolton as a Non-Subsidiary.

     

    Notwithstanding any provision of this
Agreement to the contrary, including, without limitation, the definition of
“Subsidiary” hereunder, New Bolton will not be deemed for any purpose to be, and
shall not have any of the rights or obligations of, a “Subsidiary”, “Borrower”,
“Guarantor”, “Loan Party” or “Obligor” hereunder.

     

    2.5           Amendment to
Section 2.5.  Section 2.5 of the Credit Agreement is
hereby amended by replacing subsection (c) thereof with the following
subsection (c) to read as follows:

     

    (c)           Each
Borrower recognizes that the amounts evidenced by checks, notes, drafts or any
other items of payment relating to and/or proceeds of Collateral may not be
collectible by the Agent on the date received.  In consideration of
the Agent’s agreement to conditionally credit the Loan Account as of the next
Business Day following the Agent’s receipt of those items of payment, each
Borrower agrees that, in computing charges under this Agreement, all items of
payment shall be deemed applied by the Agent on account of the Obligations one
(1) Business Day after (i) the Business Day Agent receives such payments via
wire transfer or electronic depository check, or (ii) in the case of payments
received by Agent in any other form, the Business Day such payment constitutes
good funds in the Agent’s account.  The Agent is not, however,
required to credit the Loan Account for the amount of any item of payment which
is unsatisfactory to Agent and Agent may charge the Loan Account for the amount
of any item of payment which is returned to Agent unpaid or otherwise not
collected.

    
      
         

      

      
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    2.6           Further Amendment to
Section 2.5.  Section 2.5 of the Credit Agreement is
hereby further amended by replacing subsection (d) thereof with the
following subsection (d) to read as follows:

     

    (d)           All
credits (other than federal wire transfers) shall be provisional, subject to
verification and final settlement.  Each Borrower agrees that any
information and data reported to the Borrowers pursuant to any service which is
received prior to final posting and confirmation is subject to correction and is
not to be construed as final posting information.  The Agent and the
Lenders shall have no liability for the content of such preliminary service
related information.

     

    2.7           Further Amendment to
Section 2.5.  Section 2.5 of the Credit Agreement is
hereby further amended by adding a new sentence to the end of
subsection (e) thereof to read as follows:

     

    The Agent
shall have the right to effectuate payment on any and all Obligations due and
owing hereunder by charging such amounts to the Loan Account as Revolving
Advances to the Borrowers.

     

    2.8           Amendment to
Section 3.2.  Section 3.2 of the Credit Agreement is
hereby amended by replacing the grid set forth therein with the following grid
to read as follows:

     

    
      	
              Tier

            	 	
              Undrawn
      Availability

            	 	
              Applicable
      Libor

              Rate
      Margin

            	 	 	
              Applicable
      Base

              Rate
      Margin

            	 	 	
              Applicable

              Letter
      of Credit

              Fee
      Percentage

            	 	 	
              Applicable
      Unused Facility

              Fee
      Percentage

            	 
	
              I

            	 	
              <
      $25,000,000

            	 	 	1.75	%	 	 	0.25	%	 	 	1.75	%	 	 	0.375	%
	
              II

            	 	
              >
      $25,000,000 but

              <
      $50,000,000

            	 	 	1.50	%	 	 	0	%	 	 	1.50	%	 	 	0.375	%
	
              III

            	 	
              >
      $50,000,000 but

              <
      $70,000,000

            	 	 	1.25	%	 	 	0	%	 	 	1.25	%	 	 	0.375	%
	
              IV

            	 	
              >
      $70,000,000

            	 	 	1.00	%	 	 	0	%	 	 	1.00	%	 	 	0.375	%

    

     

    2.9           Amendment to
Section 4.14(h).  Section 4.14(h) of the Credit
Agreement is hereby amended by deleting the following sentence, which is the
penultimate sentence of the second paragraph thereof

     

    The Agent
and National City Bank shall have entered into an agreement, such agreement to
be in form and substance satisfactory to the Agent and acknowledged by the
Borrowing Agent (or other applicable Obligor) (the “Cash Concentration Accounts
Agreement”), whereby National City Bank will agree to maintain the Cash
Concentration Accounts on behalf of the Agent.

     

    2.10         Amendment to
Section 7.1(a).  Section 7.1(a) of the Credit
Agreement is hereby amended by replacing clause (viii) thereof with the
following clause (viii) to read as follows:

     

    (viii)                      the
transfer, lease, sale or other disposition of any property by a Foreign
Subsidiary to the Parent, to any Loan Party, or to any Foreign Subsidiary which
is a Wholly-Owned Subsidiary for cash or an intercompany note, including,
without limitation, any transfer, lease, sale or other disposition for cash or
an intercompany note of (A) any equity interest in a Foreign Subsidiary,
or(B) any rights in respect of intercompany indebtedness of a Foreign
Subsidiary (whether evidenced by a promissory note or otherwise).

     

    
      
         

      

      
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    2.11                      Further Amendment to
Section 7.1.  Section 7.1 of the Credit Agreement is
hereby further amended by adding a new clause (g) thereto to read as
follows:

     

    (g)           The
Parent and, if applicable, its Subsidiaries shall be permitted (i) to enter
in to the New Bolton Acquisition Agreement and, to the extent such documents are
in form and substance substantially similar to the draft form delivered to the
Agent at the time of the delivery of the New Bolton Acquisition Agreement, the
other New Bolton Acquisition Documents and (ii) to consummate the New
Bolton Acquisition.

     

    2.12                      Amendment to
Section 7.3.  Section 7.3 of the Credit Agreement is
hereby amended by (i) deleting the word “and” at the end of clause (d)
thereof, (ii) replacing the “.” at the end of clause (e) thereof with
the phrase “, and” and (iii) adding a new clause (f) thereto to read
as follows:

     

    (f)           the
Parent Guaranty so long as the maximum amount of all obligations guaranteed
thereby does not exceed Six Million Dollars ($6,000,000) in the aggregate,
whether such obligations constitute principal, interest, fees or other
Indebtedness;

     

    2.13                      Amendment to
Section 7.4.  Section 7.4 of the Credit Agreement is
hereby amended by deleting Section 7.4 in its entirety and by replacing it
with the following Section 7.4 to read as follows:

     

    7.4         Investments.

     

    Purchase or acquire obligations or
stock of, or any other interest in, any Person, except (a) investments
existing on the Closing Date and set forth on Schedule 7.4,
(b) investments made in New Bolton to consummate the New Bolton Acquisition
in accordance with the New Bolton Acquisition Documents, (c) Permitted
Acquisitions and any related Permitted Acquisition Assumed Indebtedness in
connection therewith, (d) investments in any Foreign Subsidiary or in any
joint venture or partnership so long as the aggregate amount of all such
investments under this clause (d), together with any guarantees by a Loan
Party of any Foreign Subsidiary permitted under Section 7.3(d) and any
extensions of credit from any Loan Party to a Foreign
Subsidiary  permitted under Section 7.5(d), does not exceed
Fifteen Million Dollars ($15,000,000) in the aggregate, (e) at any time
during a Permitted Period, additional investments in any Foreign Subsidiary or
in any joint venture or partnership, (f) investments in any Domestic
Obligor, (g) purchases by any Foreign Subsidiary of, or acquisitions by any
Foreign Subsidiary of obligations or stock of, or any other interest in, any
other Foreign Subsidiary which is a Wholly-Owned Subsidiary, including any
purchases, acquisitions or investments contemplated pursuant to
Section 7.1(a)(viii), (h) cash and Cash Equivalents; provided, however, the Borrowers and any of
their Subsidiaries may invest in cash and Cash Equivalents as
follows:  (A) during any time that Revolving Advances are outstanding
to the Domestic Borrowers and an Activation Notice has not been delivered by the
Agent pursuant to Section 4.14(g), the aggregate amount of all cash and
Cash Equivalents held by the Domestic Borrowers or any of their Domestic
Subsidiaries permitted by this subsection (h) shall not exceed Forty-Six
Million Dollars ($46,000,000) for any period of three consecutive Business Days;
(B) during any time that Revolving Advances are outstanding to the UK Borrowers
or any other Foreign Borrowers and an Activation Notice has not been delivered
by the Agent pursuant to Section 4.14(g), the aggregate amount of all such
investments held by any of the UK Borrowers or any other Foreign Borrowers
permitted by this subsection (h) of this Section 7.4 shall not exceed
Fifteen Million Dollars ($15,000,000) for any period of three consecutive
Business Days; (C) the aggregate amount of all cash and Cash Equivalents held by
Foreign Subsidiaries of the Loan Parties (other than the UK Borrowers, any other
Foreign Borrowers, or any Subsidiaries of the UK Borrowers or any other Foreign
Borrowers) shall not be restricted, and (D) during any time that Revolving
Advances are outstanding to any Borrowers and an Activation Notice has been
delivered by the Agent pursuant to Section 4.14(g), the aggregate amount of
all such investments held by the Borrowers or any of their Domestic Subsidiaries
permitted by subsection (h) of this Section 7.4 shall not exceed One
Million Dollars ($1,000,000) for any period of three consecutive Business
Days.

     

    
      
         

      

      
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    2.14                      Amendment to
Section 7.5.  Section 7.5 of the Credit Agreement is
hereby amended by replacing clause (a) thereof with the following
clause (a) to read as follows:

     

    (a)           advances
loans or extensions of credit (i) to any Domestic Obligor, or
(ii) from any Foreign Subsidiary to any Foreign Subsidiary which is a
Wholly-Owned Subsidiary,

     

    2.15                      Amendment to
Section 7.7.  Section 7.7 of the Credit Agreement is
hereby amended by replacing clause (ii) thereof with the following
clause (ii) to read as follows:

     

    (ii) any
Foreign Subsidiary may declare and pay dividends to its shareholders or members
in cash or other property or assets, and

     

    2.16                      Amendment to
Section 7.10.  Section 7.10 of the Credit Agreement
is hereby amended by deleting Section 7.10 in its entirety and by replacing
it with the following Section 7.10 to read as follows:

     

    7.10           Transactions with
Affiliates.

     

    Directly or indirectly, purchase,
acquire or lease any property from, or sell, transfer or lease any property to,
or otherwise deal with, any Affiliate, except
(a) transactions in the ordinary course of business, on an arm’s length
basis on terms no less favorable than terms which would have been obtainable
from a Person other than an Affiliate, and (b) transactions otherwise
permitted pursuant to Sections 7.1(a)(viii), 7.3, 7.4 and 7.5.

     

    2.17                      Amendment to
Article IX.  Article IX of the Credit Agreement is
hereby amended by adding the following new Sections 9.16, 9.17 and 9.18,
respectively, to read as follows:

     

    9.16           Certified Copies of the New Bolton
Loan Documents.

     

    Promptly, and in any event within Five
Business Days of the New Bolton Acquisition Date, copies of all of the executed
and delivered New Bolton Loan Documents and the Parent Guaranty, each in form
and substance satisfactory to the Agent, certified as being true, correct and
complete by an officer of the Parent.

     

    9.17           Certified Copies of the New Bolton
Charter Documents.

     

    Promptly, and in any event within Five
Business Days of the New Bolton Acquisition Date, copies of all of the
certificate of formation of New Bolton, certified by the Secretary of State of
the State of Michigan, and a copy of the Operating Agreement of New Bolton, each
in form and substance satisfactory to the Agent, and certified as being true,
correct and complete by an officer of the Parent;

     

    9.18           Certified Copies of the New Bolton
Acquisition Documents.  Promptly, and in any event within Five
Business Days of the New Bolton Acquisition Date, copies of all of the executed
and delivered New Bolton Acquisition Documents other than the New Bolton
Acquisition Agreement, each in form and substance satisfactory to the Agent, and
certified as being true, correct and complete by an officer of the
Parent.

    
      
         

      

      
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    Section
3                                REPRESENTATIONS AND
WARRANTIES.

    

    Each Borrower hereby represents and
warrants to the Lenders, the Agent, the Swingline Lender and the LC Issuer as
follows:

    

    3.1           The Amendment.  This
Amendment has been duly and validly executed by an authorized executive officer
of such Borrower and constitutes the legal, valid and binding obligation of such
Borrower enforceable against such Borrower in accordance with its
terms.  The Credit Agreement, as amended by this Amendment, remains in
full force and effect and remains the valid and binding obligation of such
Borrower enforceable against such Borrower in accordance with its terms, except
as such enforceability may be limited by any applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditor’s rights generally or by equitable principles including principles of
commercial reasonableness, good faith and fair dealing (whether enforceability
is sought by proceedings in equity or at law).

     

    3.2           No Default or Event of
Default.  No Default or Event of Default exists under the
Credit Agreement as of the date hereof and no Default or Event of Default will
occur as a result of the effectiveness of this Amendment.

     

    3.3           Restatement of Representations and
Warranties.  The representations and warranties of such
Borrower contained in the Credit Agreement, as amended by this Amendment, and
the Other Loan Documents are true and correct on and as of the Amendment
Effective Date (as defined below) of this Amendment as though made on the
Amendment Effective Date, unless and to the extent that any such representation
and warranty is stated to relate solely to an earlier date, in which case such
representation and warranty shall be true and correct as of such earlier
date.

     

    Section
4                                CONDITIONS TO
EFFECTIVENESS.

     

    The date and time of the effectiveness
of this Amendment (the “Amendment Effective
Date”) is subject to the satisfaction of the following conditions
precedent:

     

    4.1           Execution.  The
Agent shall have received counterparts of this Amendment duly executed and
delivered by an authorized officer of Parent, each other Borrower, Guarantor,
Issuer and each of the Required Lenders, respectively;

     

    4.2           Certified Copies of the New Bolton
Acquisition Agreement.  The Agent shall have received from the
Borrowers a copy of the executed and delivered New Bolton Acquisition Agreement
and all exhibits and schedules thereto, all in form and substance satisfactory
to the Agent, and certified as being true, correct and complete by an officer of
the Parent;

     

    4.3           Payment of Costs and
Expenses.  The Borrowers shall have paid all outstanding and
reasonable costs, expenses and the disbursements of the Agent and its advisors,
service providers and legal counsels incurred in connection with the
documentation of this Amendment, to the extent invoiced, as well as any other
fees payable on or before the Amendment Effective Date pursuant to any fee
letter or agreement, if any, with the Agent;

     

    4.4           Payment of Amendment
Fee.  The Borrowers shall have paid to the Agent, for the
ratable benefit of the Lenders which have executed and delivered this Amendment
on or before September 25, 2009, a non-refundable amendment fee, which
shall be fully earned when paid, in an amount of up to Fifty Thousand Dollars
($50,000); provided, however, (i) each such signing Lender’s share of such fee
shall be equal to its respective Revolving Percentage of such Fifty Thousand
Dollars ($50,000), and (ii) to the extent that any Lender does not execute and
deliver this Amendment on or before September 25, 2009, the Agent shall
receive an additional amount equal to such non-signing Lender’s Revolving
Percentage of such Fifty Thousand Dollars ($50,000);

     

    4.5           Other.  All
corporate and other proceedings, and all documents, instruments and other legal
matters in connection with the transactions contemplated by this Amendment shall
be reasonably satisfactory in form and substance to the Agent and its
counsel.

     

    
      
         

      

      
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    Section
5                                MISCELLANEOUS.

     

    5.1           Governing Law.  This
Amendment shall be governed by and construed in accordance with the laws of the
State of Ohio with out giving effect to the conflict of laws rules
thereof.

     

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

     

    5.3           Counterparts.  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 deemed to be an original, and all of which taken together shall
constitute but one and the same instrument.

     

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

     

    5.5           Negotiations.  Each
Borrower acknowledges and agrees that all of the provisions contained herein
were negotiated and agreed to in good faith after discussion with the Agent, the
Swingline Lender the LC Issuer and the Lenders.

     

    5.6           Nonwaiver. The execution,
delivery, performance and effectiveness of this Amendment shall not operate as,
or be deemed or construed to be, a waiver: (i) of any right, power or remedy of
the Lenders, the Swingline Lender, the LC Issuer or the Agent under the Credit
Agreement or the Other Loan Documents, or (ii) of any term, provision,
representation, warranty or covenant contained in the Credit Agreement or any
Other Loan Document.  Further, none of the provisions of this
Amendment shall constitute, be deemed to be or construed as, a waiver of any
Default or Event of Default under the Credit Agreement as amended by this
Amendment.

     

    5.7           Reaffirmation.  Each
Borrower, other than the UK Borrowers, hereby (i) ratifies and reaffirms all of
its payment and performance obligations, contingent or otherwise, under the
Credit Agreement and each of the Other Loan Documents to which it is a party and
(ii) ratifies and reaffirms its grant of security interests and Liens under such
documents and confirms and agrees that such security interests and Liens
hereafter secure all of the Obligations.

     

    5.8           Release of
Claims.  In consideration of the Lenders’ and the Agent’s
agreements contained in this Amendment, each Borrower hereby irrevocably
releases and forever discharge the Lenders, the Swingline Lender, the LC Issuer
and the Agent and their Affiliates, subsidiaries, successors, assigns,
directors, officers, employees, agents, consultants and attorneys (each, a
“Released
Person”) of and from any and all claims, suits, actions, investigations,
proceedings or demands, whether based in contract, tort, implied or express
warranty, strict liability, criminal or civil statute or common law of any kind
or character, known or unknown, which such Borrower ever had or now has against
Agent, any Lender or any other Released Person which relates, directly or
indirectly, to any acts or omissions of Agent, any Lender or any other Released
Person relating to the Credit Agreement or any Other Loan Document on or prior
to the date hereof.

     

    5.9           Reference to and Effect on the Credit
Agreement.  Upon the effectiveness of this Amendment, each
reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,”
“herein,” or words of like import shall mean and be a reference to the Credit
Agreement as amended by this Amendment and each reference to the Credit
Agreement in any other document, instrument or agreement executed and/or
delivered in connection with the Credit Agreement shall mean and be a reference
to the Credit Agreement, as amended by this Amendment.

     

    
      
         

      

      
        S-8

        
          

        

      

      
         

      

    

     

    [SIGNATURES
FOLLOW]

     

    Each of
the parties has signed this Amendment No. 3 as of the day and year first
above written.

     

    
      
        	 	
                BORROWERS:

              	 
	 	 	 
	 	
                STONERIDGE,
      INC.

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ GEORGE E.
      STRICKLER	 
	 	 	
                
                  Name:
      George E. Strickler

                

              	 
	 	 	
                
                  Title:
      Executive Vice
      President, Chief Financial Officer and Treasurer

                

              	 
	 	 	 	 

      

    

    
      
        	 	
                STONERIDGE
      CONTROL DEVICES, INC.

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	
                /s/ GEORGE E.
      STRICKLER

              	 
	 	 	
                
                  Name:
      George E. Strickler

                

              	 
	 	 	
                
                  Title:
      Executive Vice
      President, Chief Financial Officer and Treasurer

                

              	 
	 	 	 	 

      

      
        	 	
                STONERIDGE
      ELECTRONICS, INC.

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	
                /s/ GEORGE E.
      STRICKLER

              	 
	 	 	
                
                  Name:
      George
      E. Strickler

                

              	 
	 	 	
                
                  Title: Executive Vice
      President, Chief Financial Officer and Treasurer

                

              	 
	 	 	 	 

      

      
        	 	
                STONERIDGE-POLLAK
      LIMITED

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	
                /s/ GEORGE E.
      STRICKLER

              	 
	 	 	
                
                  Name:
      George
      E. Strickler

                

              	 
	 	 	
                
                  Title:
      Executive Vice President, Chief Financial Officer and
      Treasurer

                

              	 
	 	 	 	 

      

      
        	 	
                STONERIDGE
      ELECTRONICS LIMITED

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	
                /s/ GEORGE E.
      STRICKLER

              	 
	 	 	
                
                  Name:
      George
      E. Strickler

                

              	 
	 	 	
                
                  Title:
      Executive Vice President, Chief Financial Officer and
      Treasurer

                

              	 
	 	 	 	 

      

      
        
          	
                   

                	
                  By:
      

                	
                  (Witness)
      /s/ KENNETH A
      KURE

                	 
	 	 	
                  (Print
      Full Name) Kenneth A Kure

                	 
	 	 	
                  (Address)
      9400 East Market Street

                	 
	 	 	
                  Warren,
      Ohio 44484

                	 

        

      

    

    
      

      
        
          
          

        

        
          S-9

          
            

          

        

        
          
          

        

      

       

      
        
          	 	GUARANTOR:	 
	 	 	 
	 	
                  STONERIDGE
      FAR EAST LLC

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	
                  /s/ GEORGE E.
      STRICKLER

                	 
	 	 	
                  
                    Name: George E.
      Strickler

                  

                	 
	 	 	
                  
                    Title:
      Executive Vice President, Chief Financial Officer and
      Treasurer

                  

                	 
	 	 	 	 

        

      

      
        
          	 	
                  AGENT:

                	 
	 	 	 
	 	
                  NATIONAL CITY BANK,
      successor to National City Business Credit, Inc., as Agent

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	
                  /s/ ANTHONY D.
      ALEXANDER

                	 
	 	 	
                  
                    Name: Anthony D.
      Alexander

                  

                	 
	 	 	
                  Title:
      Vice President

                	 
	 	 	 	 

        

        
          	 	
                  ISSUER:

                	 
	 	 	 
	 	
                  NATIONAL CITY BANK, as
      Issuer

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	
                  /s/ ANTHONY D.
      ALEXANDER

                	 
	 	 	
                  
                    Name:
      Anthony
      D. Alexander

                  

                	 
	 	 	
                  
                    Title:
      Vice President

                  

                	 
	 	 	 	 

        

         

        
          
            
            

          

          
            S-10

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  LENDERS:

                	 
	 	 	 
	 	
                  NATIONAL CITY BANK,
      successor to National City Business Credit, Inc., as a
    Lender

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	
                  /s/ ANTHONY D.
      ALEXANDER

                	 
	 	 	
                  
                    Name:
      Anthony D.
      Alexander

                  

                	 
	 	 	
                  
                    Title:
      Vice President

                  

                	 
	 	 	 	 
	 	 	
                  Revolving
      Commitment:  $28,000,000

                	 
	 	 	 	 
	 	 	
                  Notice
      Information:

                	 
	 	 	 	 
	 	 	
                  National
      City Bank

                	 
	 	 	
                  1965
      East Sixth Street

                	 
	 	 	
                  4th
      Floor

                	 
	 	 	
                  Locator
      01-3049

                	 
	 	 	
                  Cleveland,
      OH 44114

                	 
	 	 	
                  Attention:  Anthony
      Alexander or

                	 
	 	 	
                  Stoneridge
      Account Manager

                	 
	 	 	
                  Telephone:  (216)222-9302

                	 
	 	 	
                  Telecopier:  (216)222-8155

                	 
	 	 	
                  Email:  anthony.alexander@nationalcity.com

                	 
	 	 	 	 

        

         

        
          
            
            

          

          
            S-11

            
              

            

          

          
            
            

          

        

      

      
         

        
          	 	
                  COMERICA BANK, as a
      Lender

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	
                  /s/ BRANDON
      WELLING

                	 
	 	 	
                  
                    Name:
      Brandon
      Welling

                  

                	 
	 	 	
                  
                    Title:
      Account Officer – Large Corporate Lending,
      Midwest

                  

                	 
	 	 	 	 
	 	 	
                  Revolving
      Commitment:  $20,000,000

                	 
	 	 	 	 
	 	 	
                  Notice
      Information:

                	 
	 	 	 	 
	 	 	
                  Comerica
      Bank

                	 
	 	 	
                  500
      Woodward

                	 
	 	 	
                  9th
      Floor

                	 
	 	 	
                  Detroit,
      MI

                	 
	 	 	
                  Attention:  Brandon
      Welling

                	 
	 	 	
                  Title:  Account
      Officer – Large Corporate Lending, Midwest

                	 
	 	 	
                  Telephone:  (313)
      222-5066

                	 
	 	 	
                  Telecopier:  (313)
      222-9516

                	 
	 	 	
                  Email:  bdwelling@comerica.com

                	 
	 	 	 	 

        

      

       

      
        
          
            
            

          

          
            S-12

            
              

            

          

          
            
            

          

        

        

        
          
            	 	
                    JPMORGAN CHASE BANK, as
      a Lender

                  	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	
                    /s/ MAC A.
      BANAS

                  	 
	 	 	
                    
                      Name: Mac A.
      Banas

                    

                  	 
	 	 	
                    
                      Title:
      Assistant Vice President

                    

                  	 
	 	 	 	 
	 	 	
                    Revolving
      Commitment:  $20,000,000

                  	 
	 	 	 	 
	 	 	
                    Notice
      Information:

                  	 
	 	 	 	 
	 	 	
                    JPMorgan
      Chase Bank, N.A.

                  	 
	 	 	
                    1300
      E. Ninth Street

                  	 
	 	 	
                    13th
      Floor

                  	 
	 	 	
                    Cleveland,
      Ohio. 44114

                  	 
	 	 	
                    Mac
      Banas, Assistant Vice President

                  	 
	 	 	
                    Tel:
      216-781-2058

                  	 
	 	 	
                    Fax:
      216-781-2071

                  	 
	 	 	
                    Email:
      mac.a.banas@chase.com

                  	 

          

        

         

        
          
            
            

          

          
            S-13

            
              

            

          

          
            
            

          

        

        

        
          
            	 	
                    PNC BANK, NATIONAL ASSOCIATION, as
      a Lender

                  	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	
                    /s/ THOMAS
      HUMBYRD

                  	 
	 	 	
                    
                      Name:
      Thomas Humbyrd

                    

                  	 
	 	 	
                    
                      Title:
      Vice President

                    

                  	 
	 	 	 	 
	 	 	
                    Revolving
      Commitment:  $20,000,000

                  	 
	 	 	 	 
	 	 	
                    Notice
      Information:

                  	 
	 	 	 	 
	 	 	
                    PNC
      Bank, National Association

                  	 
	 	 	
                    One
      PNC Plaza, Sixth Floor

                  	 
	 	 	
                    249
      Fifth Ave.

                  	 
	 	 	
                    Pittsburgh,
      PA 15222

                  	 
	 	 	
                    Attention:  Eric
      L. Moore

                  	 
	 	 	
                    Telephone:  (412)
      768-1332

                  	 
	 	 	
                     Facsimile:  (412)
      768-4369

                  	 

          

          
             

            
              
              

            

            
              S-14

              
                

              

            

            
              
              

            

          

        

        
          
            	 	
                    FIFTH THIRD BANK, as a
      Lender

                  	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	
                    
                       /s/
      ROY
      LANCTOT

                    

                  	 
	 	 	
                    
                      Name:
      Roy Lanctot

                    

                  	 
	 	 	
                    
                      Title:
      Vice President

                    

                  	 
	 	 	 	 
	 	 	
                    Revolving
      Commitment:  $12,000,000

                  	 
	 	 	 	 
	 	 	
                    Notice
      Information:

                  	 
	 	 	 	 
	 	 	
                    Fifth
      Third Bank

                  	 
	 	 	
                    600
      Superior Ave East

                  	 
	 	 	
                    Cleveland,
      Ohio. 44114

                  	 
	 	 	
                    Roy
      Lanctot, Vice President

                  	 
	 	 	
                    Tel:
      216-274-5473

                  	 
	 	 	
                    Fax:
      216-274-5621

                  	 
	 	 	
                    Email:
      roy.lanctot@53.com

                  	 

          

        

         

        
          
            
            

          

          
            S-15Unassociated Document

    EXHIBIT
10.31

     

    Indemnification
agreement between Stoneridge, Inc. and John C. Corey, George E. Strickler,
Kenneth A. Kure and James E. Malcolm.

     

    INDEMNIFICATION
AGREEMENT

     

    This
Indemnification Agreement is made ________ __, 2009 by and between Stoneridge,
Inc., an Ohio corporation (the “Company”), and                                
(the “Employee”).

    

    Background
Information

     

    A.           The
Employee is a key employee and/or officer of the Company and is a director of
Stoneridge Pollak Holdings Ltd. and/or Stoneridge Pollak Ltd. and/or Stoneridge
International Financial Services Company and, in those capacities and others, is
performing valuable services for the Company.

    

    B.           The
shareholders of the Company adopted an Amended and Restated Code of Regulations
(the “Regulations”) providing, among other things, for indemnification of the
officers or employees of the Company in accordance with Section 1701.13 of the
Ohio Revised Code (the “Statute”), including indemnification of a person who was
or is party, or is threatened to be made a party to any threatened, pending, or
completed action, suit, or proceeding, whether civil, criminal, administrative,
or investigative, other than an action by or in the right of the Company, by
reason of the fact that he is or was serving at the request of the Company as a
director, trustee, officer, employee, or agent of another corporation, domestic
or foreign.

     

    C.           The
Regulations and the Statute specifically provide that they are not exclusive,
and contemplate that contracts may be entered into between the Company and
officer and/or employees with respect to indemnification of officer and/or
employees.

     

    D.           The
Company and Employee recognize the substantial cost of carrying directors and
officers liability insurance (“D&O Insurance”) and that the Company may
elect not to carry D&O Insurance from time to time.

     

    E.           The
Company and Employee further recognize that directors, officers and employees
may be exposed to certain risks not covered by D&O Insurance.

     

    F.           These
factors with respect to the coverage and cost to the Company of D&O
Insurance and issues concerning the scope of indemnity under the Statute and
Regulations generally have raised questions concerning the adequacy and
reliability of the protection presently afforded to certain officers and
employees.

     

    G.           In
order to address such issues and induce the Employee to continue to serve as an
officer and/or employee of the Company or one or more of its subsidiaries, the
Company has determined to enter into this Indemnification Agreement with the
Employee.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Statement
of Agreement

     

    In
consideration of the Employee’s continued service as an officer and/or employee
of the Company or one or more of its subsidiaries after the date of this
Indemnification Agreement, the Company and the Employee hereby agree as
follows:

     

    Section
1.                      Indemnity of
Employee.  Subject only to the limitations set forth in Section
2, below, the Company shall indemnify the Employee to the full extent not
otherwise prohibited by the Statute or other applicable law, including without
limitation indemnity:

     

    (a)           Against
any and all costs and expenses (including travel, legal, expert, and other
professional fees and expenses), judgments, damages, fines (including excise
taxes with respect to employee benefit plans), penalties, and amounts paid in
settlement actually and reasonably incurred by the Employee (collectively,
“Expenses”), in connection with any threatened, pending, or completed action,
suit or proceeding, or arbitration or other alternative dispute resolution
mechanism, whether domestic or foreign, whether civil, criminal, administrative,
or investigative, (each a “Proceeding”) to which the Employee is or at any time
becomes a party, or is threatened to be made a party, as a result, directly or
indirectly, of serving at any time: (i) as a director, officer, employee, or
agent of the Company; or (ii) at the request of the Company as a director,
officer, employee, trustee, fiduciary, manager, member, or agent of a
corporation, partnership, trust, limited liability company, employee benefit
plan, or other enterprise or entity, whether domestic or foreign;
and

     

    (b)           Otherwise
to the fullest extent that the Employee may be indemnified by the Company under
the Regulations and the Statute, including without limitation the
non-exclusivity provisions thereof.

     

    Section
2.                      Limitations on
Indemnity.  No indemnity pursuant to Section 1 shall be paid by
the Company:

     

    (a)           Except
to the extent that the aggregate amount of losses to be indemnified exceed the
aggregate amount of such losses for which the Employee is actually paid or
reimbursed pursuant to D&O Insurance, if any, which may be purchased and
maintained by the Company or any of its subsidiaries;

     

    (b)           On
account of any Proceeding in which judgment is rendered against the Employee for
an accounting of profits made from the purchase or sale of securities of the
Company pursuant to the provisions of Section 16(b) of the Securities Exchange
Act of 1934, as amended;

     

    (c)           On
account of the Employee’s conduct which is determined (pursuant to the Statute)
to have been knowingly fraudulent, deliberately dishonest, or willful
misconduct, except to the extent such indemnity is otherwise permitted under the
Statute;

     

    (d)           With
respect to any remuneration paid to the Employee determined, by a court having
jurisdiction in the matter in a final adjudication from which there is no
further right of appeal, to have been in violation of law;

     

    (e)           If
it shall have been determined by a court having jurisdiction in the matter, in a
final adjudication from which there is no further right of appeal, that
indemnification is not lawful;

     

    (f)           On
account of the Employee’s conduct to the extent it relates to any matter that
occurred prior to the time such individual became an employee of the Company;
or

     

    (g)           With
respect to Proceedings initiated or brought voluntarily by the Employee and not
by way of defense, except pursuant to Section 8 with respect to proceedings
brought to enforce rights or to collect money due under this Indemnification
Agreement; provided however that indemnity may be provided by the Company in
specific cases if the Board of Directors finds it to be
appropriate.

     

    
      
        
        

      

      
        Page
2

        
          

        

      

      
        
        

      

    

     

    In no
event shall the Company be obligated to indemnify the Employee pursuant to this
Indemnification Agreement to the extent such indemnification is prohibited by
applicable law.

     

    Section
3.                      Advancement of
Expenses.  Subject to Section 7 of this Indemnification
Agreement, the Expenses incurred by the Employee in connection with any
Proceeding shall be promptly reimbursed or paid by the Company as they become
due; provided that the Employee submits a written request to the Company for
such payment together with reasonable supporting documentation for such
Expenses; and provided further that the Employee, at the request of the Company,
submits to the Company an undertaking to the effect stated in Section 7, below,
and to reasonably cooperate with the Company concerning such
Proceeding.

     

    Section
4.                      Insurance and Self
Insurance.  The Company shall not be required to maintain
D&O Insurance in effect if and to the extent that such insurance is not
reasonably available or if, in the reasonable business judgment of the Board of
Directors, either (a) the premium cost of such insurance is disproportionate to
the amount of coverage, or (b) the coverage provided by such insurance is so
limited by exclusions that there is insufficient benefit from such
insurance.  To the extent the Company determines not to maintain
D&O Insurance, the Company shall be deemed to be self-insured within the
meaning of Section 1701.13(E)(7) of the Statute and shall, in addition to the
Employee’s other rights hereunder, provide protection to the Employee similar to
that which otherwise would have been available to the Employee under such
insurance.

     

    Section
5.                      Continuation of
Obligations.  All obligations of the Company under this
Indemnification Agreement shall apply retroactively beginning on the date the
Employee commenced as, and shall continue during the period that the Employee
remains, an officer, employee or agent of the Company or is, as described above,
a director, officer, employee, trustee, fiduciary, manager, member, or agent of
another corporation, partnership, limited liability company, trust, employee
benefit plan, or other enterprise, whether domestic of foreign, and shall
continue thereafter as long as the Employee (whether still employed by the
Company or not) may be subject to any possible claim or any threatened, pending
or completed Proceeding as a result, directly or indirectly, of being such a
director, officer, employee, trustee, fiduciary, manager, member, or
agent.

     

    Section
6.                      Notification and Defense of
Claim.  Promptly after receipt by the Employee of notice of the
commencement of any Proceeding, if a claim is to be made against the Company
under this Indemnification Agreement, the Employee shall notify the Company of
the commencement thereof, but the delay or omission to so notify the Company
shall not relieve the Company from any liability which it may have to the
Employee under this Indemnification Agreement, except to the extent the Company
is materially prejudiced by such delay or omission.  With respect to
any such Proceeding of which the Employee notifies the Company of the
commencement:

     

    (a)           The
Company shall be entitled to participate therein at its own
expense;

     

    (b)           The
Company shall be entitled to assume the defense thereof, jointly with any other
indemnifying party similarly notified, with counsel selected by the Company and
approved by the Employee, which approval shall not unreasonably be
withheld.  After notice from the Company to the Employee of the
Company’s election to assume such defense, the Company shall not be liable to
the Employee under this Indemnification Agreement for any legal or other
Expenses subsequently incurred by the Employee in connection with the defense
thereof except as otherwise provided below.  The Employee shall have
the right to employ his own counsel in such Proceeding, but the fees and
expenses of such counsel incurred after notice from the Company of its
assumption of such defense shall be the expenses of the Employee unless (i) the
employment of such counsel by the Employee has been authorized by the Company,
(ii) the Employee, upon the advice of counsel, shall have reasonably concluded
that there may be a conflict of interest between the Company and the Employee in
the conduct of such defense, or (iii) the Company has not in fact employed
counsel to assume such defense, in any of which cases the fees and expenses of
such counsel shall be the expense of the Company.  The Company shall
not be entitled to assume the defense of any Proceeding brought by or on behalf
of the Company or as to which the Employee, upon the advice of counsel, shall
have made the conclusion described in (ii), above.  In the event the
Company assumes the defense of any Proceeding as provided in this Section 6(b),
the Company may defend or settle such Proceeding as it deems appropriate;
provided, however, the Company shall not settle any Proceeding in any manner
which would impose any penalty or limitation on the Employee without the
Employee’s written consent, which consent shall not be unreasonably
withheld.

     

    
      
        
        

      

      
        Page
3

        
          

        

      

      
        
        

      

    

     

    (c)           The
Company shall not be required to indemnify the Employee under this
Indemnification Agreement for any amounts paid in settlement of any Proceeding
without the Company’s written consent, which consent shall not be unreasonably
withheld.

     

    (d)           The
Employee shall cooperate with the Company in all ways reasonably requested by it
in connection with the Company fulfilling its obligations under this
Indemnification Agreement.

     

    Section
7.                      Repayment of
Expenses.  The Employee shall reimburse the Company for all
Expenses paid by the Company pursuant to Section 3 of this Indemnification
Agreement or otherwise in defending any Proceeding against the Employee if and
only to the extent that a determination shall have been made by a court in a
final adjudication from which there is no further right of appeal that the
Employee is not entitled to indemnification by the Company for such Expenses
under the Statute, the Regulations, this Indemnification Agreement or
otherwise.

     

    Section
8.                      Enforcement.  The
Company expressly confirms that it has entered into this Indemnification
Agreement and has assumed the obligations of this Indemnification Agreement in
order to induce the Employee to continue as a Employee and employee of the
Company and acknowledges that the Employee is relying upon this Indemnification
Agreement in continuing in that capacity.  If the Employee is required
to bring an action to enforce rights or to collect money due under this
Indemnification Agreement, the Company shall reimburse the Employee for all of
the Employee’s reasonable fees and expenses (including legal, expert, and other
professional fees and expenses) in bringing and pursuing such action, unless the
court determines that each of the material assertions made by the Employee as a
basis for such action were not made in good faith or were
frivolous.  The Company shall have the burden of proving that
indemnification is not required under this Indemnification Agreement, unless a
prior determination has been made by the shareholders of the Company or a court
of competent jurisdiction that indemnification is not required
hereunder.

     

    Section
9.                      Rights Not
Exclusive.  The indemnification provided by this
Indemnification Agreement shall not be deemed exclusive of any other rights to
which the Employee may be entitled under the Company’s articles of
incorporation, Regulations, any vote of the shareholders or disinterested
Employees of the Company, the Statute, or otherwise, both as to action in his
official capacity and as to action in another capacity while holding such
office.

     

    Section
10.                      Separability.  Each
of the provisions of this Indemnification Agreement is a separate and distinct
agreement and independent of the others so that, if any provisions of this
Indemnification Agreement shall be held to be invalid and unenforceable for any
reason, such invalidity or unenforceability shall not affect the validity or
enforceability of the other provisions of this Indemnification
Agreement.

     

    Section
11.                      Modification to Applicable
Law.  In the event there is a change, after the date of this
Indemnification Agreement, in any applicable law (including without limitation
the Statute) which: (a) expands the right of an Ohio corporation to indemnify a
member of its Board of Directors or an Employee, such change shall be
automatically included within the scope of the Employee’s rights and Company’s
obligations under this Indemnification Agreement; or (b) narrows the right of an
Ohio corporation to indemnify a member of its Board of Directors or an officer,
such change, to the extent not otherwise required by such law, shall have no
effect on this Indemnification Agreement or the parties’ rights and obligations
hereunder.

     

    Section
12.                      Partial
Indemnity.  If the Employee is entitled under any provision of
this Indemnification Agreement to indemnity by the Company for some or a portion
of the Expenses actually or reasonably incurred by him in the investigation,
defense, appeal, or settlement of any Proceeding, but not for the total amount
thereof, the Company shall nevertheless indemnify the Employee for the portion
of such Expenses to which the Employee is entitled.

     

    
      
        
        

      

      
        Page
4

        
          

        

      

      
        
        

      

    

     

    Section
13.                      Governing
Law.  This Indemnification Agreement shall be interpreted and
enforced in accordance with the laws of the State of Ohio, without regard to
choice of law principles.

     

    Section
14.                      Venue.  The
parties agree that venue for any litigation arising out of this Indemnification
Agreement or any document delivered in connection herewith shall be in a court
with subject matter jurisdiction located in Cuyahoga County, Ohio.

     

    Section
15.                      Successors.  This
Indemnification Agreement shall be binding upon, inure to the benefit of, and be
enforceable by and against the Employee and the Company and their respective
heirs, successors, and assigns.  The Company shall require any
successor or assign (whether direct or indirect, by purchase, merger,
consolidation, or otherwise) to all or substantially all of the business and/or
assets of the Company, expressly, absolutely, and unconditionally to assume and
agree to perform this Indemnification Agreement in the same manner and to the
same extent that the Company would be required to perform it if no such
succession or assignment had taken place.

     

    Section
16.                      Notices.  All
notices and other communications required or permitted to be given hereunder
shall be in writing and shall be deemed to have been duly given when received,
if personally delivered; when transmitted, if transmitted by electronic fax,
telecopy or similar electronic transmission method; the day after it is sent, if
mailed, first-class mail, postage prepaid.

     

    Section
17.                      Amendment and
Modification.  This Indemnification Agreement may be amended,
modified or supplemented only by a written agreement executed by the Company and
the Employee.

     

    Section
18.                      Assignment.  This
Indemnification Agreement and all of the provisions hereof shall be binding upon
and inure to the benefit of the parties hereto and their respective heirs,
successors and permitted assigns, but neither this Indemnification Agreement nor
any of the rights, interests or obligations hereunder shall be assigned by any
of the parties hereto without the prior written consent of the other party, nor
is this Indemnification Agreement intended to confer upon any other person
except the parties any rights or remedies hereunder.

     

    Section
19.                      Prior
Agreements.  This Indemnification Agreement shall supersede any
other agreements entered into prior to the date of this Indemnification
Agreement between the Company and the Employee concerning the subject matter of
this Indemnification Agreement.

     

    Section
20.                      Consent to
Jurisdiction.  The Company and the Employee each hereby
irrevocably consents to the jurisdiction of the courts of the State of Ohio for
all purposes in connection with any action or proceeding which arises out of or
relates to this Indemnification Agreement and hereby waives any objections or
defenses relating to jurisdiction with respect to any lawsuit or other legal
proceeding initiated in or transferred to such courts.

    

    Section
21.                      Counterparts.  This
Indemnification Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original, and all of which shall together
constitute one and the same instrument.

    

    
      	
               

            	
              

                STONERIDGE,
      INC.

              

            

    

     

    
      
        	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	William
      M. Lasky	 
	 	 	

                Chairman
      of the Board of Directors

              	 
	 	 	 	 

      

      
        

        
          	
                   

                	
                  

                    EMPLOYEE:

                  

                
	 	 ___________________________________
	 	Printed Name
      __________________________

        

         

        
          
            
            

          

          
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5

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