Document:

Amendment No. 4 to Amended and Restated Loan Agreement

 [Execution] 
  
 AMENDMENT NO. 4 TO AMENDED AND RESTATED LOAN AGREEMENT 
  
 This AMENDMENT NO. 4 TO AMENDED AND RESTATED LOAN AGREEMENT (this “Amendment”), dated as of October 31, 2005, is entered into by and among
Wise Alloys LLC, a Delaware limited liability company (“Alloys”), Wise Recycling, LLC, a Maryland limited liability company (“Recycling” and together with Alloys, each individually a “Borrower” and collectively,
“Borrowers”), Wise Metals Group LLC, a Delaware limited liability company (“Group”), Wise Alloys Finance Corporation, a Delaware corporation (“Finance”), Listerhill Total Maintenance Center LLC, a Delaware limited
liability company (“Listerhill”), Wise Warehousing, LLC, a Delaware limited liability company (“Warehousing”), Wise Recycling Texas, LLC, a Delaware limited liability company (“Recycling Texas”), Wise Recycling West,
LLC, a Delaware limited liability company (“Recycling West” and together with Group, Finance, Listerhill, Warehousing and Recycling Texas, each individually a “Guarantor” and collectively, “Guarantors”), the financial
institutions from time to time parties hereto as lenders, whether by execution of this Agreement or an Assignment and Acceptance (each individually, a “Lender” and collectively, “Lenders”), and Wachovia Bank, National
Association, successor by merger to Congress Financial Corporation, in its capacity as administrative agent for Lenders (in such capacity, “Agent”). 
  

W I T N E S S E T H: 
  
 WHEREAS, Agent and Lenders have entered into financing arrangements with Borrowers pursuant to which Agent and Lenders may,
upon certain terms and conditions, make loans and advances and provide other financial accommodations to Borrowers as set forth in the Amended and Restated Loan Agreement, dated May 5, 2004, as amended by Amendment No. 1 to Amended and
Restated Loan Agreement, dated as of June 30, 2004, Amendment No. 2 to Amended and Restated Loan Agreement, dated as of November 10, 2004, and Amendment No. 3 and Waiver to Amended and Restated Loan Agreement, dated as of
March 21, 2005 (as the same now exists and may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, the “Loan Agreement”) and the other agreements, documents and instruments referred to therein or any
time executed and/or delivered in connection therewith or related thereto, including this Amendment (all of the foregoing, together with the Loan Agreement, as the same now exist or may hereafter be amended, modified, supplemented, extended,
renewed, restated or replaced, being collectively referred to herein as the “Financing Agreements”); 
  
 WHEREAS, Borrowers have requested that Agent and Lenders agree to make certain amendments to the Loan Agreement, and Agent and Lenders are willing to
agree to such amendments, subject to the terms and conditions contained herein; 
  
 WHEREAS, the parties hereto desire to enter into this Amendment to evidence and effectuate such amendments, subject to the terms and conditions and to the extent set forth herein; 

 NOW, THEREFORE, in consideration of the premises and covenants set forth herein and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
  
 1. Definitions. 
  
 (a) Amendments to Definitions. 
  
 (i) The definition of “Adjusted Inventory Loan Limit” in the Loan Agreement is hereby deleted in its entirety and replaced with the following:

  
 “ ‘Adjusted Inventory Loan
Limit’ shall mean, as to each Borrower, at any time, the amount equal to $115,000,000, minus the then outstanding principal amount of Loans to the other Borrowers (and including Letter of Credit Accommodations to the extent provided in the
definition of the term Borrowing Base) based on Eligible Inventory.” 
  
 (ii) The definition of “Commitment” in Section 1.27 of the Loan Agreement is hereby deleted in its entirety and replaced with the following: 
  
 “1.27 ‘Commitment’ shall mean, at any time,
as to each Lender, the principal amount set forth next to such Lender’s name on Schedule 1.27 hereto designated as the Commitment or on Schedule 1 to the Assignment and Acceptance Agreement pursuant to which such Lender became a Lender
hereunder in accordance with the provisions of Section 13.6 hereof, as the same may be adjusted from time to time in accordance with the terms hereof; sometimes being collectively referred to herein as ‘Commitments’”. 

 
 (iii) The definition of “Inventory Loan Limit” in
Section 1.75 of the Loan Agreement is hereby deleted in its entirety and replaced with the following: 
  
 “1.75 ‘Inventory Loan Limit’ shall mean, as to each Borrower, at any time, the amount equal to $105,000,000, minus the
then outstanding principal amount of Loans to the other Borrowers (and including Letter of Credit Accommodations to the extent provided in the definition of the term Borrowing Base) based on Eligible Inventory.” 
  
 (iv) The definition of “Maximum Credit” in Section 1.84 of
the Loan Agreement is hereby deleted in its entirety and replaced with the following: 
  
 “1.84 ‘Maximum Credit’ shall mean the amount of $150,000,000 (subject to adjustment as provided in Section 2.5
hereof).” 
  
 (b) Interpretation. Capitalized terms
used herein which are not otherwise defined herein shall have the respective meanings ascribed thereto in the Loan Agreement. 

 2. Option to Increase Maximum Credit. Section 2 of the Loan Agreement is hereby amended by
inserting the following Section 2.5 at the end of such Section: 
  
 “2.5 Option to Increase Maximum Credit. 
  
 (a) Administrative Borrower may, at any time, deliver a written request to Agent to increase the Maximum Credit. Any such written request
shall specify the amount of the increase in the Maximum Credit that Administrative Borrower is requesting, provided, that, (i) in no event shall the aggregate amount of any such increase in the Maximum Credit cause the Maximum Credit to exceed
$175,000,000, (ii) such request shall be for an increase of not less than $5,000,000, (iii) any such request shall be irrevocable, and (iv) in no event shall more than two (2) such written requests be delivered to Agent during
the term of this Agreement. 
  
 (b) Upon the
receipt by Agent of any such written request, Agent shall notify each of the Lenders of such request and, except as otherwise agreed to by Agent with any Lender, each Lender shall have the option (but not the obligation) to increase the amount of
its Commitment by an amount up to its Pro Rata Share of the amount of the increase in the Maximum Credit requested by Administrative Borrower as set forth in the notice from Agent to such Lender. Each Lender shall notify Agent within twenty
(20) days after the receipt of such notice from Agent whether it is willing to so increase its Commitment, and if so, the amount of such increase; provided, that, (i) the minimum increase in the Commitments of each such
Lender providing the additional Commitments shall equal or exceed $1,000,000 (except as Agent may otherwise agree), and (ii) no Lender shall be obligated to provide such increase in its Commitment and the determination to increase the
Commitment of a Lender shall be within the sole and absolute discretion of such Lender. If the aggregate amount of the increases in the Commitments received from the Lenders does not equal or exceed the amount of the increase in the Maximum Credit
requested by Administrative Borrower, Agent may seek additional increases from Lenders or Commitments from such Eligible Transferees as it may determine, after consultation with Administrative Borrower. In the event Lenders (or Lenders and any such
Eligible Transferees, as the case may be) have committed in writing to provide increases in their Commitments or new Commitments in an aggregate amount in excess of the increase in the Maximum Credit requested by Administrative Borrower or permitted
hereunder, Agent shall then have the right to allocate such Commitments, first to Lenders and then to Eligible Transferees, in such amounts and manner as Agent may determine, after consultation with Administrative Borrower. 
  
 (c) The Maximum Credit shall be increased by the amount of
the increase in Commitments from Lenders or new Commitments from Eligible Transferees, in each case selected in accordance with Section 2.5(a) above, for which Agent has received Assignment and Acceptances (or other agreements 

 
acceptable to Agent) within forty (40) days after the date of the request by Administrative Borrower for the increase or such earlier date as Agent and
Administrative Borrower may agree (but in each case subject to the satisfaction of the conditions set forth below), whether or not the aggregate amount of the increase in Commitments and new Commitments, as the case may be, equal or exceed the
amount of the increase in the Maximum Credit requested by Administrative Borrower in accordance with the terms hereof, effective on the date that each of the following conditions have been satisfied: 
  
 (i) Agent shall have received from each Lender or Eligible
Transferee that is providing an additional Commitment as part of the increase in the Maximum Credit, an Assignment and Acceptance (or other agreement acceptable to Agent) duly executed by such Lender or Eligible Transferee and Administrative
Borrower, provided, that, the aggregate Commitments set forth in such Assignment and Acceptance(s) shall be not less than $5,000,000; 
  
 (ii) the conditions precedent to the making of Loans set forth in Section 4.2 hereof shall be satisfied as of the date of the
increase in the Maximum Credit, both before and after giving effect to such increase; 
  
 (iii) Agent shall have received, in form and substance satisfactory to Agent, a certificate of the Chief Financial Officer of
Administrative Borrower certifying, among other things, that: (A) after giving effect to the increase in the Maximum Credit, the Indebtedness under this Agreement shall continue to be “Permitted Indebtedness” for all purposes under
the Indenture, and (B) after giving effect to any such increase in the Maximum Credit, the performance of the terms and conditions of this Agreement and the other Financing Agreements and the incurrence of Obligations by Borrowers and
Guarantors (1) are within each Borrower’s and Guarantor’s corporate or limited liability company powers, (2) have been duly authorized by each Borrower and Guarantor, (3) are not in contravention of law or the terms of any
Borrower’s or Guarantor’s certificate of incorporation, certificate of formation, by laws, operating agreement or other organizational documentation, or any indenture (including the Indenture), agreement or undertaking to which any
Borrower or Guarantor is a party or by which any Borrower or Guarantor or its property are bound, and (4) will not result in the creation or imposition of, or require or give rise to any obligation to grant, any lien, security interest, charge
or other encumbrance upon any property of any Borrower or Guarantor, other than the liens in favor of Agent; 
  
 (iv) Agent shall have received an opinion of counsel to Borrowers and Guarantors in form and substance and from counsel reasonably
satisfactory to Agent addressing such matters as Agent may reasonably request (including, without limitation, an opinion as to no conflicts with other Indebtedness); 
  
 (v) such increase in the Maximum Credit on the date of the effectiveness thereof shall not violate any
applicable law, regulation or order or decree of any court or other Governmental Authority and shall not be enjoined, temporarily, preliminarily or permanently; and 

 (vi) each Lender and Eligible Transferee providing an additional Commitment in
connection with such increase in the Maximum Credit shall have received all fees (including any additional commitment fees) and Agent shall have received all fees and expenses (including reasonable fees and expenses of counsel) in each case due and
payable to such Person on or before the effectiveness of such increase; and 
  
 (d) As of the effective date of any such increase in the Maximum Credit, each reference to the term Maximum Credit herein, and in any of the other Financing Agreements shall be deemed to have been amended to mean the
amount of the Maximum Credit specified in the most recent written notice from Agent to Administrative Borrower of the increase in the Maximum Credit.” 
  
 3. Minimum EBITDA. Section 9.17 of the Loan Agreement is hereby deleted in its entirety and replaced with the following: 
  
 “9.17 Minimum EBITDA. Group and its
Subsidiaries shall not permit the EBITDA of Group and its Subsidiaries for each period set forth below (each, a “Section 9.17 Test Period”) to be less than the amount set forth below opposite such Section 9.17 Test Period: 

 

				
	 Period

	  	Minimum EBITDA

	 October 1, 2004 through September 30, 2005
	  	$	25,000,000
	 November 1, 2004 through October 31, 2005
	  	$	25,000,000
	 December 1, 2004 through November 30, 2005
	  	$	25,000,000
	 January 1, 2005 through December 31, 2005
	  	$	28,000,000
	 February 1, 2005 through January 31, 2006
	  	$	28,000,000
	 March 1, 2005 through February 28, 2006
	  	$	28,000,000
	 April 1, 2005 through March 31, 2006
	  	$	28,000,000
	 May 1, 2005 through April 30, 2006
	  	$	28,000,000
	 June 1, 2005 through May 31, 2006
	  	$	28,000,000
	 July 1, 2005 through June 30, 2006 and each twelve (12) month period ending on the last day of each month
thereafter
	  	$	35,000,000

  
 provided,
that, solely for purposes of this Section 9.17, the calculation of EBITDA shall not include the effects of any non cash accounting adjustments for FASB 133 or any non cash LIFO reserves; provided, further, that, if
the aggregate 

 
Adjusted Excess Availability of Borrowers is equal to or greater than $22,500,000 for each of the ten (10) consecutive days immediately preceding the
last day of any such Section 9.17 Test Period, then Group and its Subsidiaries shall not be required to comply with the terms of this Section 9.17 for such Section 9.17 Test Period.” 
  
 4. Minimum Debt Service Ratio. 
  
 (a) Section 9.18 of the Loan Agreement is hereby amended by deleting
the second proviso of such Section and replacing it with the following: 
  
 “provided, further, that, if the aggregate Adjusted Excess Availability of Borrowers is equal to or greater than $22,500,000 for each of the ten (10) consecutive days immediately
preceding the last day of any such Section 9.18 Test Period, then Group and its Subsidiaries shall not be required to comply with the terms of this Section 9.18 for such Section 9.18 Test Period.” 
  
 (b) Notwithstanding anything to the contrary contained herein, in the Loan
Agreement or the other Financing Agreements, Borrowers and Guarantors shall not be required to comply with the terms of Section 9.18 of the Loan Agreement for the periods ending September 30, 2005, October 31,
2005, November 30, 2005, December 31, 2005, January 31, 2006, February 28, 2006 and March 31, 2006. 
  
 5. Term. 
  
 (a) Section 13.1(a) of the Loan Agreement is hereby amended by deleting the phrase “a term ending on the date three (3) years from the date
hereof” and replacing it with “a term ending on May 5, 2008”. 
  
 (b) Section 13.1(c) of the Loan Agreement is hereby amended by (i) deleting the reference to “September 10, 2006” and replacing it with “September 10, 2007” and (ii) deleting the
reference to “September 9, 2006” and replacing it with “September 9, 2007”. 
  
 6. Amendment Fee. In addition to all other fees, charges, interest and expenses payable by Borrowers to Agent and Lenders under the Loan Agreement
and the other Financing Agreements, Borrowers shall pay to Agent, for the account of Lenders (to the extent and in accordance with the arrangements between Agent and each Lender), an amendment fee in the amount of $312,500, which fee shall be fully
earned and due and payable on the effective date hereof and may be charged by Agent directly to any loan account of Borrowers. 
  
 7. Schedules. The Loan Agreement is hereby amended by adding a new Schedule 1.27 thereto in the form attached hereto as Schedule 1. 
  
 8. Additional Representations, Warranties and Covenants. Borrowers and
Guarantors, jointly and severally, represent, warrant and covenant with and to Agent and Lenders as follows, which representations, warranties and covenants are continuing and shall survive the execution 

 
and delivery hereof, and the truth and accuracy of, or compliance with each, together with the representations, warranties and covenants in the other
Financing Agreements, being a continuing condition of the making of Loans by Lenders to Borrowers: 
  
 (a) This Amendment has been duly authorized, executed and delivered by all necessary action on the part of each Borrower and Guarantor which is a party
hereto and, if necessary, their respective members or stockholders, as the case may be, and is in full force and effect as of the date hereof, as the case may be, and the agreements and obligations of Borrowers and Guarantors contained herein
constitute legal, valid and binding obligations of Borrowers and Guarantors enforceable against them in accordance with their terms, except as such enforceability may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or
similar laws of general applicability affecting the enforcement of creditors’ rights and (ii) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

  
 (b) As of the date hereof, all of the representations and
warranties set forth in the Loan Agreement and the other Financing Agreements are true and correct in all material respects on and as of the date hereof as if made on the date hereof, except to the extent any such representation or warranty is made
as of a specified date, in which case such representation or warranty shall have been true and correct as of such date. 
  
 (c) As of the date hereof and after giving effect to the provisions of Section 4 hereof, no Default or Event of Default exists or has occurred and is
continuing. 
  
 (d) Neither the execution, delivery and
performance of this Amendment or any other Financing Agreements in connection therewith, nor the consummation of any of the transactions contemplated herein or therein (i) are in contravention of law or any indenture, agreement or undertaking
(including the Indenture) to which any Borrower or Guarantor is a party or by which any Borrower or Guarantor or its property are bound or (ii) violates any provision of the Certificate of Incorporation or By-Laws or other governing documents
of any Borrower or Guarantor. 
  
 9. Conditions Precedent.
The provisions contained herein shall be effective as of the date hereof, but only upon the satisfaction of each of the following conditions precedent, in a manner satisfactory to Agent: 
  
 (a) Agent shall have received an original of this Amendment, duly authorized, executed and delivered by Borrowers,
Guarantors and each Lender; 
  
 (b) Agent shall have received, in
form and substance satisfactory to Agent, (i) a Secretary’s Certificate of Members’ and Managers’ Resolutions, Operating Agreement, Incumbency and Member’s Consent for each of Alloys, Recycling, Group, Listerhill,
Warehousing, Recycling Texas and Recycling West evidencing the adoption and subsistence of resolutions approving the execution, delivery and performance by each such Borrower or Guarantor, as applicable, of this Amendment, and (ii) a
Secretary’s Certificate of Directors’ Resolutions, Corporate Bylaws, Incumbency and Shareholder’s Consent for Finance evidencing the adoption and subsistence of resolutions approving the execution, delivery and performance by Finance
of this Amendment; 

 (c) Agent shall have received, in form and substance satisfactory to Agent, an opinion letter of counsel
to Borrowers and Guarantors with respect to this Amendment and such other matters as Agent may request (including, without limitation, an opinion as to no conflicts with other Indebtedness); 
  
 (d) Agent shall have received, in form and substance satisfactory to Agent,
an opinion letter of Alabama counsel to Alloys with respect to this Amendment and such other matters as Agent may request; and 
  
 (e) no Default or Event of Default shall have occurred and be continuing (after giving effect to the provisions of Section 4 hereof). 
  
 10. Effect of this Amendment; Entire Agreement. Except as expressly
set forth herein, no other changes or modifications to the Financing Agreements are intended or implied, and in all other respects the Financing Agreements are hereby specifically ratified, restated and confirmed by all parties hereto as of the date
hereof. This Amendment and any instruments or documents delivered or to be delivered in connection herewith, represent the entire agreement and understanding concerning the subject matter hereof and thereof between the parties hereto, and supersede
all other prior agreements, understandings, negotiations and discussions, representations, warranties, commitments, proposals, offers and contracts concerning the subject matter hereof, whether oral or written. To the extent of conflict between the
terms of this Amendment and the other Financing Agreements, the terms of this Amendment shall control. The Loan Agreement and this Amendment shall be read and construed as one agreement. 
  
 11. Further Assurances. The parties hereto shall execute and deliver such additional documents and take such
additional action as may be reasonably necessary or desirable to effectuate the provisions and purposes of this Amendment. 
  
 12. Governing Law. The validity, interpretation and enforcement of this Amendment and any dispute arising out of the relationship between the
parties hereto whether in contract, tort, equity or otherwise, shall be governed by the internal laws of the State of New York but excluding any principles of conflicts of law or other rule of law that would cause the application of the law of any
jurisdiction other than the laws of the State of New York. 
  
 13.
Binding Effect. This Amendment shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns. 
  

14. Headings. The headings listed herein are for convenience only and do not constitute matters to be construed in interpreting this Amendment.

  
 15. Counterparts. This Amendment may be executed in any
number of counterparts, but all of such counterparts shall together constitute but one and the same agreement. In making proof of this Amendment, it shall not be necessary to produce or account for more than one counterpart thereof signed by each of
the parties hereto. This Amendment may be executed and 

 
delivered by telecopier or other electronic method of transmission with the same force and effect as if it were a manually executed and delivered
counterpart. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 IN WITNESS WHEREOF, Agent, Lenders, Borrower and Guarantors have caused this Amendment to be duly
executed as of the day and year first above written. 
  

			
	 BORROWERS

	
	 WISE ALLOYS LLC

		
	 By:
	 	 /s/ Danny Mendelson

		
	 Title:
	 	 Chief Financial Officer/CEO/Secretary

	
	 WISE RECYCLING, LLC

		
	 By:
	 	 /s/ Danny Mendelson

		
	 Title:
	 	 President, CEO, CFO, Secretary

	
	 GUARANTORS

	
	 WISE METALS GROUP LLC

		
	 By:
	 	 /s/ Danny Mendelson

		
	 Title:
	 	 Executive VP, CFO, Secretary

	
	 WISE ALLOYS FINANCE CORPORATION

		
	 By:
	 	 /s/ Danny Mendelson

		
	 Title:
	 	 Secretary and Treasurer

	
	 LISTERHILL TOTAL MAINTENANCE CENTER LLC

		
	 By:
	 	 /s/ Danny Mendelson

		
	 Title:
	 	 CEO, CFO, Secretary

	
	 WISE RECYCLING TEXAS, LLC

		
	 By:
	 	 /s/ Danny Mendelson

		
	 Title:
	 	 President, CEO, CFO

  
 [SIGNATURES
CONTINUED ON NEXT PAGE] 

 [SIGNATURES CONTINUED FROM PREVIOUS PAGE] 
  

			
	 WISE WAREHOUSING, LLC

		
	 By:
	 	 /s/ Danny Mendelson

	 Title:
	 	 President, CEO, CFO

	
	 WISE RECYCLING WEST, LLC

		
	 By:
	 	 /s/ Danny Mendelson

	 Title:
	 	 President, CEO, CFO

  
 [SIGNATURES
CONTINUED ON NEXT PAGE] 

 [SIGNATURES CONTINUED FROM PREVIOUS PAGE] 
  

			
	AGENT
	
	 WACHOVIA BANK, NATIONAL ASSOCIATION,
 successor by merger to Congress Financial Corporation, as Agent

		
	 By:
	 	 /s/ James O’Connell

		
	 Title:
	 	 Associate

	
	 LENDERS

	
	 WACHOVIA BANK, NATIONAL ASSOCIATION,
 successor by merger to Congress Financial Corporation

		
	 By:
	 	 /s/ James O’Connell

		
	 Title:
	 	 Associate

	
	 BANK OF AMERICA, NA

		
	 By:
	 	 /s/ Robert Anchundia

		
	 Title:
	 	 Vice President

	
	 RZB FINANCE LLC

		
	 By:
	 	 /s/ John A. Valiska

		
	 Title:
	 	 First Vice President

		
	 By:
	 	 /s/ Nicolas M. Meriatis

		
	 Title:
	 	 Group Vice President, Controller

	
	 UPS CAPITAL CORPORATION

		
	 By:
	 	 /s/ John P. Holloway

		
	 Title:
	 	 Director of Portfolio Management

 SCHEDULE 1 
 TO 
 AMENDMENT NO. 4 TO AMENDED AND RESTATED LOAN AGREEMENT 
  
 SCHEDULE 1.27 
 TO 
 AMENDED AND RESTATED LOAN AGREEMENT 
  
 Commitments 
  

							
	 Lender

	  	Commitment

	  	Pro Rata Share

	 
	 Wachovia Bank, National Association
	  	$	70,000,000	  	46.667	%
	 Bank of America, NA
	  	$	50,000,000	  	33.333	%
	 UPS Capital Corporation
	  	$	18,000,000	  	12	%
	 RZB Finance LLC
	  	$	12,000,000	  	8	%
	 TOTAL:
	  	$	150,000,000	  	100	%FORM OF EXCHANGE AGREEMENT

 Exhibit 10.1 
  
 EXCHANGE AGREEMENT 
  
 This Exchange Agreement (this “Agreement”) is made and entered into as of this         
day November, 2005, by and among the Holders named in Schedule 1 hereto (each a “Holder” and collectively, the “Holders”), and LTX Corporation, a Massachusetts corporation (the “Company”).

  
 RECITALS 
  
 WHEREAS, each Holder currently holds the principal amount of the
Company’s 4 1/4% Convertible Subordinated Notes due 2006 as set forth opposite each Holder’s name on
Schedule 1 hereto (the “Outstanding Notes”); 
  
 WHEREAS, each Holder desires to exchange the Outstanding Notes for an equal principal amount of the Company’s 4 1/4% Convertible Senior Notes due 2007 (the “New Notes”) on the terms and conditions set forth in this Agreement (the “Exchange Transaction”); 
  
 WHEREAS, the New Notes will be issued pursuant to the Indenture, to be
entered by the Company and the Trustee named therein (the “Indenture”), substantially in the form of Exhibit A hereto; and 
  
 WHEREAS, the Company desires to issue to each Holder the principal amount of New Notes as set forth opposite each Holder’s name on Schedule 1 in
exchange for the Outstanding Notes in the Exchange Transaction. 
  
 NOW, THEREFORE, in consideration of the premises and the agreements set forth below, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  
 ARTICLE I 
 Exchange 
  
 Section 1.1 The Exchange. Upon the terms and subject to the conditions of this Agreement, at the Closing (as defined herein), the Company shall issue and exchange
$                 in aggregate principal amount of New Notes plus all accrued and unpaid interest on the Outstanding Notes at the day prior to Closing for an
equal principal amount of Outstanding Notes. 
  
 Section 1.2
Closing. The closing is anticipated to take place on the date hereof at the offices of the Company, 50 Rosemont Road, Westwood, Massachusetts 02090, or on such other date and at such other place as the parties may agree in writing (the
“Closing”). At the Closing, each Holder shall deliver or cause to be delivered to the Company all of such Holder’s right, title and interest in and to all of the Outstanding Notes, and all documentation related thereto, and
whatever documents of conveyance or transfer may be necessary or desirable to transfer to and 

 
confirm in the Company all right, title and interest in and to the Outstanding Notes, and the Company shall issue to each Holder the New Notes and pay to
each Holder in cash by wire transfer of immediately available funds an amount equal to the accrued and unpaid interest on each Holder’s Outstanding Notes at the day prior to the Closing. 
  
 Section 1.3 Conditions to Closing. This Agreement and the Exchange
Transaction shall become effective upon the satisfaction of the following conditions: 
  
 (a) Each Holder and the Company shall have executed and delivered to each other this Agreement; 
  
 (b) The Company and the Trustee shall have executed and
delivered the Indenture; 
  
 (c) The Company
shall have executed and delivered the New Notes in the principal amount set forth in Section 1.1; 
  
 (d) Each Holder shall have delivered, or caused to be delivered, to the Company the Outstanding Notes being exchanged pursuant to this
Agreement; and 
  
 (e) The Company shall have
delivered to the Holders a certificate of the Company, dated the Closing Date, executed by the secretary of the Company certifying in such capacity and on behalf of the Company (i) as to the incumbency and signature of the officer of the
Company who executed this Agreement and the New Notes; and (ii) as to the adoption of resolutions of the board of directors of the Company which are in full force and effect on the Closing Date, authorizing (x) the execution and delivery
of this Agreement and the New Notes; and (y) the performance of the obligations of the Company hereunder and thereunder; 
  
 Section 1.4 Exchange of Additional Notes. Simultaneously with or after the Closing, subject to the terms of the Indenture, the Company may issue to
one or more holders of Outstanding Notes New Notes in an aggregate principal amount that, together with the New Notes issued pursuant to this Agreement, does not exceed $88,300,000. 
  
 ARTICLE II 
 Representations and Warranties of the Holders 
  
 Each Holder hereby makes the following representations and warranties, each of which is true and correct on the date hereof and shall survive the date of the Closing and the transactions contemplated hereby to the extent set forth herein.

  
 Section 2.1 Existence and Power. 
  
 (a) Such Holder is duly organized, validly existing and in
good standing under the laws of the jurisdiction of its organization and has the power, authority and capacity to execute and deliver this Agreement, to perform such Holder’s obligations hereunder, and to consummate the transactions
contemplated hereby. 
  

 - 2 - 

 (b) The execution of this Agreement by such Holder and the consummation by such Holder of
the transactions contemplated hereby do not and will not constitute or result in a breach, violation or default under any note, bond, mortgage, deed, indenture, lien, instrument, contract, agreement, lease or license, whether written or oral,
express or implied, or any statute, law, ordinance, decree, order, injunction, rule, directive, judgment or regulation of any court, administrative or regulatory body, governmental authority, arbitrator, mediator or similar body on the part of such
Holder or on the part of any other party thereto or cause the acceleration or termination of any obligation or right of such Holder. 
  
 Section 2.2 Valid and Enforceable Agreement; Authorization. This Agreement has been duly executed and delivered by such Holder and constitutes a
legal, valid and binding obligation of such Holder, enforceable against such Holder in accordance with its terms, except that such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting or relating to enforcement of creditors’ rights generally, and (b) general principles of equity. 
  
 Section 2.3 Title to Outstanding Notes. Such Holder is the sole legal and beneficial owner of and has good and valid title to the Outstanding
Notes, free and clear of any mortgage, lien, pledge, charge, security interest, encumbrance, title retention agreement, option, equity or other adverse claim thereto. Such Holder has not, in whole or in part, (i) assigned, transferred,
hypothecated, pledged or otherwise disposed of the Outstanding Notes or the rights of such Holder in such Outstanding Notes, or (ii) given any person or entity any transfer order, power of attorney or other authority of any nature whatsoever
with respect to such Outstanding Notes. 
  
 Section 2.4
Investment Decision. Such Holder is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and was not organized for the purpose of
acquiring the New Notes or the shares of the Company’s common stock (the “Common Stock”), $.05 par value per share, into which the New Notes may be converted (the “Underlying Common Stock”). Such Holder (or its
authorized representative) is familiar with the Company’s objectives and business plan, has reviewed the Company’s filings with the Securities and Exchange Commission (the “SEC”), including, without limitation, the
Company’s Annual Report on Form 10-K filed on October 11, 2005 and the Company’s Definitive Proxy Statement filed on October 14, 2005 (all of such filings with the SEC referred to, collectively, as the “SEC
Documents”), and has had such opportunity to ask questions of and to obtain from representatives of the Company such information as is necessary to permit such Holder to evaluate the merits and risks of its investment in the Company and has
independently, without reliance upon any representatives of the Company and based on such information as such Holder deemed appropriate, made its own analysis and decision to enter into this Agreement. Such Holder has had the opportunity to consult
with its accounting, tax, financial and legal advisors to be able to evaluate the risks involved in the exchange of the Outstanding Notes pursuant hereto and to make an informed investment decision with respect to such exchange. Such Holder
acknowledges that the Company is relying on the truth and accuracy of the foregoing representations and warranties in the offering of the New Notes to such Holder without having first registered the New Notes or the Underlying Common Stock under the
Securities Act. 
  

 - 3 - 

 Section 2.5 Purchase Entirely for Own Account. Such Holder is acquiring the New Notes only for
investment purposes for such Holder’s own account. Such Holder is not acquiring the Notes with a view to the resale or distribution of any part thereof, and such Holder has no present intention of selling, granting any participation in, or
otherwise distributing the same. Such Holder does not presently have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the New
Notes. 
  
 Section 2.6 Restricted Securities. Such Holder
understands that neither the New Notes nor the Underlying Common Stock have been, or will be, registered under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among
other things, the bona fide nature of the investment intent and the accuracy of such Holder’s representations as expressed herein. Such Holder understands that the New Notes (and the Underlying Common Stock) are “restricted
securities” under applicable U.S. federal and state securities laws and that, pursuant to these laws, such Holder must hold the New Notes (and the Underlying Common Stock) indefinitely unless they are registered with the Securities and Exchange
Commission and qualified by state authorities, or an exemption from such registration and qualification requirements is available. Such Holder acknowledges that the Company has no obligation to register or qualify the New Notes or the Underlying
Common Stock for resale. Such Holder further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding
period for the New Notes (and the Underlying Common Stock), and on requirements relating to the Company which are outside such Holder’s control, and which the Company is under no obligation and may not be able to satisfy. 
  
 Section 2.7 No Public Market. Such Holder understands that no public
market now exists for the New Notes, and that the Company has made no assurance that a public market will ever exist for the New Notes. 
  
 Section 2.8 Legends. Such Holder understands that the New Notes and any shares of Underlying Common Stock will bear one or more of the legends
required by the Indenture, and the removal of such legends shall be governed by the terms of the Indenture. 
  
 Section 2.9 Affiliate Status. Such Holder is not, and has not been during the preceding three months, an “affiliate” of the company
as such term is defined in Rule 144 under the Securities Act. 
  
 ARTICLE III 
 Representations, Warranties and Covenants of the Company 
  
 The Company hereby makes the following representations, warranties, and
covenants each of which is true and correct on the date hereof and shall survive the date of the Closing and the transactions contemplated hereby to the extent set forth herein. 
  

 - 4 - 

 Section 3.1 Existence and Power. 
  
 (a) The Company is a corporation duly organized, validly existing and in good standing under the laws of the
State of Massachusetts and has the power, authority and capacity to execute and deliver this Agreement, to perform the Company’s obligations hereunder, and to consummate the transactions contemplated hereby. 
  
 (b) The execution of this Agreement by the Company and the
consummation by the Company of the transactions contemplated hereby (i) does not require the consent, approval, authorization, order, registration or qualification of, or filing with, any governmental authority or court, or body or arbitrator
having jurisdiction over the Company other than the SEC, state securities regulators, the NASDAQ National Market, The Depository Trust Company and PORTAL; and (ii) does not and will not constitute or result in a breach, violation or default
under any note, bond, mortgage, deed, indenture, lien, instrument, contract, agreement, lease or license, whether written or oral, express or implied, or with the Company’s articles of organization or by-laws, or any statute, law, ordinance,
decree, order, injunction, rule, directive, judgment or regulation of any court, administrative or regulatory body, governmental authority, arbitrator, mediator or similar body on the part of the Company or on the part of any other party thereto or
cause the acceleration or termination of any obligation or right of the Company or any other party thereto. 
  
 Section 3.2 Valid and Enforceable Agreement; Authorization. This Agreement has been duly executed and delivered by the Company and constitutes a
legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except that such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting or relating to enforcement of creditors’ rights generally, and (b) general principles of equity. 
  
 Section 3.3 Capitalization. At the Closing, the authorized capital stock of the Company will consist of 200,000,000 shares of Common Stock, par
value $0.05 per share. As of the close of business on November 8, 2005, there were 61,536,392 shares of Common Stock issued and outstanding. All such issued and outstanding shares have been duly authorized and validly issued, and are fully paid
and non-assessable, and were issued in compliance with all applicable state and federal laws concerning the issuance of securities and all applicable pre-emptive, participation, rights of first refusal and other similar rights. 
  
 Section 3.4 Valid Issuance of the New Notes. The New Notes, when
issued, sold and delivered in accordance with the terms and for the consideration set forth in this Agreement, will constitute legal and binding obligations of the Company, be validly issued and free of restrictions on transfer other than
restrictions on transfer under this Agreement, applicable state and federal securities laws and liens or encumbrances created by or imposed by a Holder, and enforceable against the Company in accordance with their terms, except that such enforcement
may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally, and (b) general principles of equity. Assuming the accuracy of the
representations of each Holder in Section 2 of this Agreement and subject to the filings required under the federal and state securities laws, the New Notes will be 

  

 - 5 - 

 
issued in compliance in all material respects with all applicable federal and state securities laws. The Underlying Common Stock has been duly reserved for
issuance, and upon issuance in accordance with the terms of the Company’s Articles of Organization, as amended, will be validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer under
applicable federal and state securities laws and liens or encumbrances created by or imposed by a Holder. Based in part upon the representations of each Holder in Section 2 of this Agreement, the Underlying Common Stock will be issued in
compliance in all material respects with all applicable federal and state securities laws. 
  
 Section 3.5 Financial Statements. Except as qualified in the SEC Documents, the audited and unaudited financial statements and schedules included in the SEC Documents, present fairly in all material respects
the consolidated financial position of the Company and its subsidiaries as of the dates indicated and the consolidated results of operations and cash flows of the Company and its subsidiaries for the periods specified; except as qualified in the SEC
Documents, such financial statements and schedules have been prepared in conformity with generally accepted accounting principles applied on a consistent basis during the periods involved. 
  
 Section 3.6 Legal Proceedings. No legal or governmental proceedings or
investigations are pending or, to the knowledge of the Company, threatened to which the Company is a party or to which the property of the Company or any of its subsidiaries is subject that are not described in the SEC Documents, except for such
proceedings or investigations which would not reasonably be expected to, singly or in the aggregate, result in a Material Adverse Effect. As used in this Agreement, the term “Material Adverse Effect” shall mean when used in respect
of any matter relating to the Company a material adverse effect on the business, condition (financial or otherwise), properties or results of operations of the Company and its subsidiaries, considered as one enterprise, or would materially adversely
affect the ability of the Company to perform its obligations under the Agreement and the New Notes. 
  
 Section 3.7 Intellectual Property. The Company and its subsidiaries own or possess, or can acquire on reasonable terms, adequate rights to use all
material patents, trademarks, service marks, trade names and copyrights, licenses, all applications and registrations for each of the foregoing, and all other material proprietary rights and confidential information necessary to conduct their
respective businesses as currently conducted; and none of the Company and its subsidiaries has received any notice, or is otherwise aware, of any infringement of or conflict with the rights of any third party with respect to any of the foregoing
which would reasonably be expected to, singly or in the aggregate, result in a Material Adverse Effect. 
  
 Section 3.8 Insurance. The Company and its subsidiaries are insured by insurers of recognized financial responsibility (including self-insurance)
against such losses and risks and in such amounts and with such deductibles as are believed to be prudent in the businesses in which they are engaged, except where the failure to have such would not reasonably be expected to have a Material Adverse
Effect; and none of the Company and its subsidiaries has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be
necessary to continue its business at a cost that would not reasonably be expected to have a Material Adverse Effect. 
  

 - 6 - 

 Section 3.9 Compliance with Laws; Permits. The Company and its subsidiaries possess all
certificates, authorizations and permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses, except where the failure to have such certificates, authorizations and permits
would not reasonably be expected to have a Material Adverse Effect, and none of the Company and its subsidiaries has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit which
would reasonably be expected to, singly or in the aggregate, result in a Material Adverse Effect. The Company and its subsidiaries are and have been in compliance with all applicable laws, statutes, ordinances, rules, regulations, orders, judgments,
decisions, decrees, standards, and requirements relating to their respective businesses, except where any such non-compliance would not reasonably be expected to have a Material Adverse Effect. 
  
 Section 3.10 No Material Adverse Effect. Since the respective dates as
of which information is given in the SEC Documents, there has not been any Material Adverse Effect affecting the Company or its subsidiaries. 
  
 ARTICLE IV 
 Miscellaneous Provisions

  
 Section 4.1 Notice. Any notice provided for in this
Agreement shall be in writing and shall be either personally delivered, or mailed first class mail (postage prepaid) with return receipt requested or sent by reputable overnight courier service (charges prepaid) to such address and to the attention
of such person as the recipient party has specified by prior written notice to the sending party. Notices will be deemed to have been given hereunder when delivered personally, three business days after deposit in the U.S. mail postage prepaid with
return receipt requested and two business days after deposit postage prepaid with a reputable overnight courier service for delivery on the next business day. 
  

Section 4.2 Hart-Scott-Rodino Act. Each Holder agrees not to convert any New Notes unless any waiting period under the Hart-Scott-Rodino
Antirust Improvements Act of 1976, as amended, applicable to such conversion shall have expired or been terminated. The Company agrees to use commercially reasonable efforts to assist each Holder in causing any such waiting period to expire or
terminate. 
  
 Section 4.3 Entire Agreement. This
Agreement, the schedules hereto, and the other documents and agreements executed in connection with the Exchange Transaction embody the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersede
all prior and contemporaneous oral or written agreements, representations, warranties, contracts, correspondence, conversations, memoranda and understandings between or among the parties or any of their agents, representatives or affiliates relative
to such subject matter, including, without limitation, any term sheets, emails or draft documents. 
  
 Section 4.4 Assignment; Binding Agreement. This Agreement and the various rights and obligations arising hereunder shall inure to the benefit of
and be binding upon the parties hereto and their successors and assigns. 
  

 - 7 - 

 Section 4.5 Counterparts. This Agreement may be executed in multiple counterparts, and on separate
counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. Any counterpart or other signature hereupon delivered by facsimile shall be deemed for all purposes as
constituting good and valid execution and delivery of this Agreement by such party. 
  
 Section 4.6 Remedies Cumulative. Except as otherwise provided herein, all rights and remedies of the parties under this Agreement are cumulative and without prejudice to any other rights or remedies available
at law. 
  
 Section 4.7 Governing Law. This Agreement shall
in all respects be construed in accordance with and governed by the substantive laws of the State of New York, without reference to its choice of law rules. 
  
 Section 4.8 No Third Party Beneficiaries or Other Rights. Nothing herein shall grant to or create in any person not a party hereto, or any such
person’s dependents or heirs, any right to any benefits hereunder, and no such party shall be entitled to sue any party to this Agreement with respect thereto. 
  
 Section 4.9 Waiver; Consent. This Agreement may not be changed, amended, terminated, augmented, rescinded or
discharged (other than in accordance with its terms), in whole or in part, except by a writing executed by the parties hereto. No waiver of any of the provisions or conditions of this Agreement or any of the rights of a party hereto shall be
effective or binding unless such waiver shall be in writing and signed by the party claimed to have given or consented thereto. Except to the extent otherwise agreed in writing, no waiver of any term, condition or other provision of this Agreement,
or any breach thereof shall be deemed to be a waiver of any other term, condition or provision or any breach thereof, or any subsequent breach of the same term, condition or provision, nor shall any forbearance to seek a remedy for any noncompliance
or breach be deemed to be a waiver of a party’s rights and remedies with respect to such noncompliance or breach. 
  
 Section 4.10 Word Meanings. The words such as “herein”, “hereinafter”, “hereof”, and “hereunder” refer to
this Agreement as a whole and not merely to a subdivision in which such words appear unless the context otherwise requires. The singular shall include the plural, and vice versa, unless the context otherwise requires. The masculine shall include the
feminine and neuter, and vice versa, unless the context otherwise requires. 
  
 Section 4.11 No Broker. Neither party has engaged any third party as broker or finder or incurred or become obligated to pay any broker’s commission or finder’s fee in connection with the transactions
contemplated by this Agreement other than such fees and expenses for which it shall be solely responsible. 
  
 Section 4.12 Further Assurances. Each Holder and the Company each hereby agree to execute and deliver, or cause to be executed and delivered, such
other documents, instruments and agreements, and take such other actions, as either party may reasonably request in connection with the transactions contemplated by this Agreement. 
  

 - 8 - 

 Section 4.13 Costs and Expenses. Each Holder and the Company shall each pay their own respective
costs and expenses incurred in connection with the negotiation, preparation, execution and performance of this Agreement, including, but not limited to, attorneys’ fees. 
  
 Section 4.14 Headings. The headings in this Agreement are for convenience of reference only and shall not limit or
otherwise affect the meaning hereof. 
  
 Section 4.15
Severability. If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions contained herein shall not be affected or impaired thereby. 
  
 [THE REMAINDER OF THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY.] 
  

 - 9 - 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed as of the date
first above written. 
  

			
	 HOLDERS:

	
	 
		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

			
	 THE COMPANY:

	
	 LTX CORPORATION

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

 SCHEDULE 1 
  

					
	 Name of Holder

	  	Aggregate
Principal
Amount of
Outstanding
Notes

	  	Aggregate Principal
Amount of New
Notes

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}]]