Document:

Exhibit 10.1

 

SECOND AMENDMENT

 

SECOND AMENDMENT, dated as of January 28, 2009
(this “Amendment”), to the Fourth Amended and Restated Credit Agreement,
dated as of January 31, 2005 (as amended from time to time, the “Credit
Agreement”), among ACCURIDE CORPORATION, a Delaware corporation (the “U.S.
Borrower”), ACCURIDE CANADA INC., a corporation organized and existing
under the law of the Province of Ontario (the “Canadian Borrower”, and,
together with the U.S. Borrower, the “Borrowers”), the several banks and
other financial institutions or entities from time to time parties to the
Credit Agreement (the “Lenders”), CITICORP USA, INC., a Delaware
corporation (“Citicorp”), as the administrative agent (in such capacity,
the “Administrative Agent”) for the Lenders, and the other agents
parties thereto.

 

W I T N E S S E T
H :

 

WHEREAS, pursuant to the Credit Agreement, the Lenders
have agreed to make, and have made, certain loans and other extensions of
credit to the Borrowers;

 

WHEREAS, the Borrowers have requested certain
amendments to the Credit Agreement and the Guarantee and Collateral Agreement
(as defined in the Credit Agreement) as more fully set forth herein; and

 

WHEREAS, the Lenders are willing to agree to such
amendments on the terms and subject to the conditions contained in this
Amendment.

 

NOW, THEREFORE, the parties hereto hereby agree as
follows:

 

SECTION 1.           Defined Terms. Unless otherwise
defined herein, terms defined in the Credit Agreement and used herein shall
have the meanings given to them in the Credit Agreement.

 

SECTION 2.           Amendments to Section 1.01 of the
Credit Agreement (Certain Defined Terms).

 

(a)           The
definitions of “Applicable Margin”, “Applicable Percentage”, “Canadian
Revolving Credit Commitment”, “Canadian Revolving Credit Facility”, “Change of
Control”, “Funded Debt”, “Letter of Credit Commitment”, “Majority Facility
Lenders”, “Net Cash Proceeds”, “Obligation”, “Termination Date”, “U.S.
Revolving Credit Commitment” and “U.S. Revolving Credit Facility” in Section 1.01
of the Credit Agreement are hereby amended in their respective entireties to
read as follows:

 

 

“Applicable Margin”
means, for Advances outstanding under each of the Term Facility, the Canadian
Revolving Credit Facility and the U.S. Revolving Credit Facility, a percentage
per annum determined as described below:

 

(a)           for Advances (other than
Last Out Term Advances and PIK Advances) outstanding under any Facility, (i) 4.00%
per annum in the case of Base Rate Advances and (ii) 5.00% per annum in
the case of Eurodollar Rate Advances;

 

(b)           for Last Out Term Advances
and PIK Advances, the interest in respect of which is payable in cash, (i) 7.00%
per annum in the case of Base Rate Advances and (ii) 8.00% per annum in
the case of Eurodollar Rate Advances; and

 

(c)           for Last Out Term Advances
and PIK Advances, the interest in respect of which is payable with PIK
Advances, (i) 9.00% per annum in the case of Base Rate Advances and (ii) 10.00%
per annum in the case of Eurodollar Rate Advances.

 

“Applicable Percentage” means 0.75% per annum.

 

“Canadian Revolving
Credit Commitment” means, with respect to any Canadian Revolving Credit
Lender at any time, the amount set forth opposite such Lender’s name on
Schedule I hereto under the caption “Canadian Revolving Credit Commitment” or,
if such Lender has entered into one or more Assignments and Acceptances, set
forth for such Lender in the Register maintained by the Administrative Agent
pursuant to Section 9.07(d) as such Lender’s “Canadian Revolving
Credit Commitment”, as such amount may be reduced from time to time as provided
herein. The aggregate principal amount of the Canadian Revolving Credit
Commitments on the Second Amendment Effective Date, after giving effect to the
reduction therein on such date, is $24,000,000.

 

“Canadian Revolving
Credit Facility” means, at any time, the aggregate amount of the Canadian
Revolving Credit Lenders’ Canadian Revolving Credit Commitments at such time
which amount shall not exceed $24,000,000.

 

“Change of Control” means, and shall be deemed to have occurred,
if:  (a) any “person” or “group” (as
such terms are used in Sections 13(d) and 14(d) of the Exchange Act,
excluding the Permitted Investors, shall have become the “beneficial owner” (as
defined in Rules 13(d)-3 and 13(d) 5 under the Exchange Act), directly
or indirectly, of more than 30% of the outstanding Voting Stock of the U.S.
Borrower; and/or (b) at any time Continuing Directors shall not constitute
a majority of the Board of Directors of the U.S. Borrower; and/or (c) a
Specified Change of Control shall occur. For purposes of this definition,
“Continuing Director” means, as of any date of determination, an individual (i) who
is a member of the Board of Directors of the U.S. Borrower on the Second
Amendment Effective Date, (ii) who, as of such date of determination, has
been a member of such Board of Directors for at least the 12 preceding months
(or, if such date of determination occurs during the period comprising the
first 12 months after the Second Amendment Effective Date, since the Second Amendment
Effective Date), or (iii) who is

 

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recommended by at least a majority of the then Continuing Directors or
who receives the vote of the Permitted Investors in his or her election by the
shareholders of the U.S. Borrower.

 

“Funded Debt” of any Person means Debt in respect of the
Advances, in the case of the Borrowers, and all other Debt (other than PIK
Advances and issued but undrawn Letters of Credit) of such Person that by its
terms matures more than one year after the date of determination or matures
within one year from such date but is renewable or extendible, at the option of
such Person, to a date more than one year after such date or arises under a
revolving credit or similar agreement that obligates the lender or lenders to
extend credit during a period of more than one year after such date, including,
without limitation, all amounts of Funded Debt of such Person required to be
paid or prepaid within one year after the date of determination.

 

“Letter of Credit Commitment” means, with respect to the Issuing
Bank at any time, the amount set forth opposite the Issuing Bank’s name on
Schedule I hereto under the caption “Letter of Credit Commitment” or, if the
Issuing Bank has entered into one or more Assignments and Acceptances, set
forth for the Issuing Bank in the Register maintained by the Administrative
Agent pursuant to Section 9.07(d) as the Issuing Bank’s “Letter of
Credit Commitment”, as such amount may be reduced at or prior to such time pursuant
to Section 2.05. The aggregate amount of the Letter of Credit Commitment
of the Initial Issuing Bank on the Second Amendment Effective Date, after
giving effect to the reduction therein on such date, is $25,000,000.

 

“Majority Facility Lenders” means, at any time, the Required
Term Lenders and the Required Revolving Lenders, provided that, for
purposes of any amendment or modification of Section 2.17 or 7.02(a),
“Majority Facility Lenders” means, at any time, the Required Term Lenders
(other than Last Out Lenders), the Last Out Requisite Lenders and the Required
Revolving Lenders.

 

“Net Cash Proceeds”
means, with respect to any sale, lease, transfer or other disposition of any
asset, or the incurrence or issuance of any Debt (excluding any Debt incurred
or issued in accordance with Section 5.02(b) other than (x) any
Debt incurred or issued after the Closing Date in accordance with Section 5.02(b)(i)(A) and
(y) any Debt in excess of $25,000,000 in the aggregate incurred or issued
after the Second Amendment Effective Date in accordance with Section 5.02(b)(iii)(I))
or the sale or issuance of any Equity Interests (including, without limitation,
any capital contribution) by any Person, or any Recovery Event, the aggregate
amount of cash received from time to time (whether as initial consideration or
through payment or disposition of deferred consideration, but only as and when
received) by or on behalf of such Person in connection with such transaction or
event after deducting therefrom only (without duplication):

 

(a)           reasonable and customary
fees, commissions, expenses, issuance costs, discounts and other costs paid by
the U.S. Borrower or any of its Restricted Subsidiaries in connection with such
transaction or event;

 

3

 

(b)           the amount of taxes paid or
estimated to be payable in connection with or as a result of such transaction
or event;

 

(c)           the amount of the
outstanding principal amount of, premium or penalty, if any, and interest on
any Debt (other than pursuant to the Facilities) that is secured by a Lien on
the stock or assets in question and that is required to be repaid under the
terms thereof as a result of any such transaction or event;

 

(d)           the amount of any reasonable
reserves established in accordance with GAAP against any liabilities (other
than taxes described in clause (b) above) that are (i) associated
with the assets that are the subject of such transaction or event and (ii) retained
by the U.S. Borrower or any of its Restricted Subsidiaries; and

 

(e)           the amount of any proceeds
received from the sale, lease, transfer or other disposition of any asset
pursuant to Section 5.02(d) or any Recovery Event to the extent that
such proceeds are invested in the business within one year following such sale
or Recovery Event, provided that, from and after the Second Amendment
Effective Date, the aggregate amount of proceeds (other than proceeds of asset
dispositions permitted pursuant to Section 5.02(d)(i) or 5.02(d)(v) and
proceeds from Recovery Events) that may be so reinvested in the business shall
not exceed $10,000,000 in any Fiscal Year;

 

provided, however, that in the event the
amount of any estimated tax payable described in clause (b) above exceeds
the amount actually paid, or upon any subsequent reduction in the amount of any
reserve described in clause (d) above, the U.S. Borrower or its applicable
Restricted Subsidiary shall be deemed to have received Net Cash Proceeds in an
amount equal to such excess or reduction, at the time of payment of such taxes
or on the date of such reduction, as the case may be; provided  further
that any portion of any proceeds received from the sale, lease, transfer or
other disposition of any asset pursuant to Section 5.02(d) or any
Recovery Event that has not been invested in the business as permitted under
this Agreement within such one year period shall (i) be deemed to be Net
Cash Proceeds of such a sale or Recovery Event occurring on the last day of
such one year period and (ii) be applied to the prepayment of Advances in
accordance with Section 2.06(b)(ii) ; provided  further
that, for purposes of the preceding proviso, such one year period shall be
extended by up to six months from the last day of such one year period so long
as (A) such proceeds are to be invested in the business as permitted under
this Agreement within such additional six-month period under the U.S.
Borrower’s or any of its Restricted Subsidiaries’ business plan as most
recently adopted in good faith by its board of directors and (B) such
Person believes in good faith that such proceeds will be so reinvested within
such additional six month period.

 

“Obligation” means , with respect to any Person, any payment,
performance or other obligation of such Person of any kind, including, without
limitation, any liability of such Person on any claim, whether or not the right
of any creditor to payment in respect of such claim is reduced to judgment,
liquidated, unliquidated, fixed, contingent, matured, disputed, undisputed,
legal, equitable, secured or unsecured, and whether or not

 

4

 

such claim is discharged, stayed or otherwise affected by any
proceeding referred to in Section 7.01(f). Without limiting the generality
of the foregoing, the Obligations of the Loan Parties under the Loan Documents
include (a) the unpaid principal of and interest on the Advances,
reimbursement obligations in respect of Letters of Credit, Letter of Credit
commissions, charges, expenses, fees, attorneys’ fees and disbursements, indemnities
and other amounts payable by any Loan Party under any Loan Document (including,
without limitation, interest accruing at the then applicable rate provided
herein after the maturity of the Advances and reimbursement obligations in
respect of Letters of Credit and Post-Petition Interest and Expenses) to the
Administrative Agent or any Lender Party (or, in the case of any Bank Hedge
Agreement, any Affiliate of any Lender Party), whether direct or indirect,
absolute or contingent, due or to become due, or now existing or hereafter
incurred, which may arise under, out of, or in connection with, this Agreement,
the other Loan Documents, any Letter of Credit, any Bank Hedge Agreement or any
other document made, delivered or given in connection with any of the
foregoing, in each case whether on account of principal, interest,
reimbursement obligations, fees, indemnities, costs, expenses or otherwise
(including, without limitation, all fees and disbursements of counsel to the
Administrative Agent or to the Lender Parties that are required to be paid by
any Borrower pursuant to the terms of any of the foregoing agreements) and (b) the
obligation of any Loan Party to reimburse any amount in respect of any of the
foregoing that any Lender Party, in its sole discretion, may elect to pay or
advance on behalf of such Loan Party.

 

“Termination Date” means (a) with respect to the U.S.
Revolving Credit Facility, the Letter of Credit Facility and the Swing Line
Facility, the earlier of January 31, 2011 and the date of termination in
whole of the U.S. Revolving Credit Commitments, the Letter of Credit
Commitments and the Swing Line Commitments pursuant to Section 2.05 or
7.01, (b) with respect to the Canadian Revolving Credit Facility, the
earlier of January 31, 2011 and the date of termination in whole of the
Canadian Revolving Credit Commitments pursuant to Section 2.05 or 7.01 and
(c) with respect to the Term Facility, the earlier of January 31,
2012 and the date of termination in whole of the Term Commitments pursuant to Section 2.05
or 7.01; provided that the dates set forth in clauses (a) and (b) above
may be extended beyond January 31, 2011 with the consent of each affected
U.S. Revolving Credit Lender and each affected Canadian Revolving Credit Lender
that elects to extend its Commitment, without the further consent of any other
Lender.

 

“U.S. Revolving Credit Commitment”
means, with respect to any U.S. Revolving Credit Lender at any time, the amount
set forth opposite such Lender’s name on Schedule I hereto under the caption
“U.S. Revolving Credit Commitment” or, if such Lender has entered into one or
more Assignments and Acceptances, set forth for such Lender in the Register
maintained by the Administrative Agent pursuant to Section 9.07(d) as
such Lender’s “U.S. Revolving Credit Commitment”, as such amount may be reduced
from time to time as provided herein. The aggregate principal amount of the
U.S. Revolving Credit Commitments on the Second Amendment Effective Date, after
giving effect to the reduction therein on such date, is $76,000,000; and the
reduction on such date shall be applied to ratably reduce the U.S.

 

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Revolving Credit Commitments of those U.S.
Revolving Credit Lenders that are not Defaulting Lenders and that approve the
Second Amendment.

 

“U.S. Revolving Credit Facility” means, at any time, the
aggregate amount of the U.S. Revolving Credit Lenders’ U.S. Revolving Credit
Commitments at such time which amount shall not exceed $76,000,000.

 

(b)           Section 1.01
of the Credit Agreement is hereby amended by inserting the following new
definitions in the appropriate alphabetical order:

 

“Average Liquidity”
means, with respect to any 12-month period ending on the last day of any Fiscal
Quarter, the average of the amounts of Liquidity on such day and on the last
day of each of the 11 immediately preceding calendar months.

 

“Bankruptcy Code”
means the United States Bankruptcy Code (11 U.S.C. §101 et seq.), as amended
from time to time.

 

“ECF Percentage”
means 75%, provided that, with respect to the Fiscal Year ending on December 31,
2008, the ECF Percentage shall be 50%.

 

“Enforcement Action”
means, with respect to the Obligations, any demand for payment or acceleration
thereof, the exercise of any rights and remedies with respect to any Collateral
securing such Obligations or the commencement or prosecution of enforcement of
any of the rights and remedies hereunder or under any other Loan Documents, or
applicable law, including without limitation the exercise of any rights of
set-off or recoupment, and the exercise of any rights or remedies of a secured
creditor under the Uniform Commercial Code of any applicable jurisdiction or
under the Bankruptcy Code.

 

“First Out Final
Payment Date” means the first date on which the First Out Obligations
(other than Unmatured Surviving Obligations) shall have been paid in full in
cash.

 

“First Out Lender”
means any Lender Party other than the Last Out Lenders in their respective
capacities as such.

 

“First Out Loan
Obligations” means all Obligations under the Loan Documents that are owed
by the Loan Parties to (a) the Administrative Agent, (b) any First
Out Lender (or, in the case of any Bank Hedge Agreement, any Affiliate of a
First Out Lender) or (c) in the case of any PIK Advances, any Last Out
Lender.

 

“First Out Requisite
Lenders” means, at any time, First Out Lenders owed or holding at least a
majority in interest of the sum of (a) the aggregate principal amount of
the First Out Term Advances, Canadian Revolving Credit Advances, U.S. Revolving
Credit Advances, Swing Line Advances or Letter of Credit Advances outstanding
at such time, (b) the aggregate Available LC Amount of all Letters of
Credit outstanding at such time and (c) the aggregate Unused Canadian
Revolving Credit Commitments and Unused U.S. Revolving Credit Commitments at
such time; provided, however, that if any First

 

6

 

Out Lender shall be a Permitted Investor or a
Defaulting Lender at such time, there shall be excluded from the determination
of First Out Requisite Lenders at such time (i) the aggregate principal
amount of the Advances owing to such First Out Lender (in its capacity as First
Out Lender) and outstanding at such time, (ii) such First Out Lender’s Pro
Rata Share of the aggregate Available LC Amount of all Letters of Credit issued
and outstanding at such time and (iii)  the Unused Canadian Revolving
Credit Commitment or the Unused U.S. Revolving Credit Commitment, as the case
may be, of such First Out Lender at such time. For purposes of this definition,
the aggregate principal amount of Swing Line Advances owing to the Swing Line
Bank and of Letter of Credit Advances owing to the Issuing Bank and the
Available LC Amount of each Letter of Credit shall be considered to be owed to
the U.S. Revolving Credit Lenders ratably in accordance with their respective
U.S. Revolving Credit Commitments.

 

“First Out Term
Advances” means all Term Advances other than the Last Out Term Advances.

 

“First Out Term Lender”
means any Lender that is owed a First Out Term Advance.

 

“Insolvency Proceeding”
means any proceeding in respect of bankruptcy, insolvency, winding up,
receivership, dissolution or assignment for the benefit of creditors, in each
of the foregoing events whether under the Bankruptcy Code or any similar
federal, state or foreign bankruptcy, insolvency, reorganization, receivership
or similar law.

 

“Last Out Debt
Agreement” means the Last Out Debt Agreement, dated as of February 4,
2009, between the U.S. Borrower and the Permitted Investors.

 

“Last Out Lender”
means any Lender that is owed a Last Out Term Advance.

 

“Last Out Loan
Obligations” means all Obligations under the Loan Documents that are owed
by the Loan Parties to the Last Out Lenders.

 

“Last Out Requisite
Lenders” means, at any time, Last Out Lenders owed or holding at least a
majority in interest of the aggregate principal amount of the Last Out Term
Advances; provided, however, that if any Last Out Lender shall be
a Defaulting Lender at such time, there shall be excluded from the
determination of Last Out Requisite Lenders at such time the aggregate
principal amount of the Last Out Term Advances owing to such Last Out Lender.

 

“Last Out Term
Advances” means the Term Advances having an aggregate principal amount of
$70,065,846 held by the Permitted Investors on the Second Amendment Effective
Date and any such Advances held by their assignees.

 

“Liquidity” means,
as of any date of determination, an amount equal to the sum of (a) cash
and Cash Equivalents held by the U.S. Borrower and its Restricted Subsidiaries
in (i) any cash collateral account held with Citibank, N.A., or (ii) any
other account subject to a Cash Collateral Account Letter, Cash Concentration
Account Letter, Control

 

7

 

Agreement or Pledged Account Letter (as each such term
is defined in the Guarantee and Collateral Agreement), plus,
(b) the unutilized amount of U.S. Revolving Credit Commitments available
to be drawn on such date by the U.S. Borrower (with satisfaction of the
applicable conditions precedent to such extension of credit to be tested as of
such date), plus, (c) the unutilized amount of
Canadian Revolving Credit Commitments available to be drawn on such date by the
Canadian Borrower (with satisfaction of the applicable conditions precedent to
such extension of credit to be tested as of such date); provided that
amounts held in payroll, tax, trust and similar accounts or amounts pledged on
a first priority basis to Persons other than the Secured Parties shall be
excluded in calculating Liquidity.

 

“Payment Default or
Acceleration” has the meaning specified in Section 2.17(a).

 

“Permitted Investors”
means Sun Capital Securities Group LLC, Sun Capital Partners V, L.P. and their
affiliates.

 

“PIK Advance” has
the meaning specified in Section 2.17(b).

 

“Post-Petition
Interest and Expenses” means interest accruing at the then applicable rate
provided herein after the filing of any petition in bankruptcy, or the
commencement of any Insolvency Proceeding, relating to either Borrower, and
expenses reimbursable hereunder which are incurred after the filing of any
petition in bankruptcy or the commencement of any such Insolvency Proceeding,
whether or not a claim for such post-filing or post-petition interest or
expenses is allowed in such proceeding.

 

“Second Amendment”
means the Second Amendment, dated as of January 28, 2009, to this
Agreement.

 

“Second Amendment
Effective Date” has the meaning specified in Section 27 of the Second
Amendment.

 

“Senior
Secured Leverage Ratio” means, as of any date of determination, the ratio
of (a) total Funded Debt of the U.S. Borrower and its Restricted
Subsidiaries that consists of, without duplication, Indebtedness that in each
case is then secured by first priority Liens on property or assets of the U.S.
Borrower or any of its Subsidiaries (other than Indebtedness permitted by Section 5.02(b)(iii)(B))
to (b) Consolidated EBITDA of the U.S. Borrower and its Restricted
Subsidiaries for the most recently completed Measurement Period prior to such
date; provided that if any acquisition was made in accordance with the
provisions of this Agreement during any Measurement Period for which
Consolidated EBITDA is being calculated, then Consolidated EBITDA shall be
calculated as though such acquisition had occurred at the beginning of such
Measurement Period.

 

“Unmatured Surviving
Obligations” has the meaning specified in the Guarantee and Collateral
Agreement.

 

“Warrant” means
the warrant issued pursuant to and in accordance with the provisions of the
Last Out Debt Agreement.

 

8

 

(c)                                  The
definition of “Base Rate” in Section 1.01 of the Credit Agreement is
hereby amended by (i) deleting the word “and” at the end of clause (b) thereof
and (ii) deleting the “.” at the end of clause (c) thereof and
substituting in lieu thereof the following:

 

; and

 

(d)                                 the
Eurodollar Rate for a one month interest period in effect on such day (or if
such day is not a Business Day, the immediately preceding Business Day) plus 1%, provided that, for the avoidance of doubt,
the Eurodollar Rate for any day shall be based on the rate appearing on the
Reuters BBA Libor Rates Page 3750 (or on any successor or substitute page of
such page) at approximately 11:00 A.M. (London time) on such day (or if
such day is not a Business Day, the immediately preceding Business Day).

 

Any change in the any of the foregoing rates shall be
effective from and including the effective date of such change.

 

(d)                                 The
definition of “EBITDA” in Section 1.01 of the Credit Agreement is hereby
amended by (i) deleting the “,” at the end of clause (A) thereof and
substituting the word “and” in lieu thereof and (ii) deleting the
following words at the end thereof:  “and
(C) for purposes of the proviso in Section 5.04 only, EBITDA shall be
increased by an amount of cash equity contributions made by the Investor Group
to the U.S. Borrower as set forth therein”.

 

(e)                                  The
definition of “Eligible Assignee” in Section 1.01 of the Credit Agreement
is hereby amended by adding after the words “Affiliate of a Loan Party” in the
proviso thereof the following parenthetical: 
“(other than the Permitted Investors”)”.

 

(f)                                    The
definition of “Eurodollar Rate” in Section 1.01 of the Credit Agreement is
hereby amended by inserting the following new sentence at the end thereof:  “Notwithstanding the foregoing, the
Eurodollar Rate shall not be less than 3.00% per annum.”

 

(g)                                 The
definition of “Interest Expense” in Section 1.01 of the Credit Agreement
is hereby amended by (i) deleting the word “and” at the end of clause (b) thereof
and substituting a “,” in lieu thereof and (ii) deleting the “.” at the
end thereof and substituting in lieu thereof the following:

 

and (d) there shall be excluded from any
determination of Consolidated Interest Expense of the U.S. Borrower and its
Restricted Subsidiaries for any period any upfront and amendment fees paid by
the U.S. Borrower in such period in respect of amendments to this Agreement to
the extent otherwise included in such Consolidated Interest Expense.

 

(h)                                 The
definitions of “Available Amount”, “Hubcap”, “Investor Group”, “KKR”, “Performance
Level”, “Performance Level A”, “Performance Level B”, “Performance Level C”, “Performance
Level D” and “Trimaran” in Section 1.01 of the Credit Agreement are hereby
deleted in their respective entireties.

 

SECTION 3.                                Amendment to Section 2.02(b) of
the Credit Agreement (Making Swing Line Advances). Section 2.02(b) of
the Credit Agreement is hereby amended by deleting 

 

9

 

the “.”
at the end of the first sentence thereof and substituting in lieu thereof the
following proviso:

 

; provided, however, that, from and
after the Second Amendment Effective Date, the U.S. Borrower shall not be
permitted to request any Swing Line Borrowings.

 

SECTION 4.                                Amendments to Section 2.04(a) of
the Credit Agreement (Repayment of Term Advances). Section 2.04(a) of
the Credit Agreement is hereby amended by (a) deleting the word “and” at
the end of clause (i) thereof and substituting a “,” in lieu thereof and (b) deleting
the “.” at the end of clause (ii) thereof and substituting in lieu thereof
the following:

 

 and (iii) notwithstanding
the foregoing, (A) no principal installment of the Last Out Term Advances
may be made until the First Out Final Payment Date shall have occurred and (B) until
the occurrence of the First Out Final Payment Date, each of the foregoing
installments shall be applied ratably to the First Out Term Advances.

 

SECTION 5.                                Amendments to Section 2.06
of the Credit Agreement (Prepayments).

 

(a)                                  Section 2.06(a) of
the Credit Agreement is hereby amended in its entirety to read as follows:

 

(a)                                  Optional.
The Appropriate Borrower may, on same Business Day’s notice in the case of Base
Rate Advances and one Business Day’s notice in the case of Eurodollar Rate
Advances, in each case to the Administrative Agent stating the proposed date
and aggregate principal amount of the prepayment, and if such notice is given
the Appropriate Borrower shall, prepay the outstanding aggregate principal
amount of the Advances comprising part of the same Borrowing in whole or
ratably in part, together with accrued interest to the date of such prepayment
on the aggregate principal amount prepaid; provided, however,
that (x) each partial prepayment shall be in an aggregate principal amount
of $1,000,000 or an integral multiple of $500,000 in excess thereof, (y) if
any prepayment of a Eurodollar Rate Advance is made on a date other than the
last day of an Interest Period for such Advance such Borrower shall also pay
any amounts owing pursuant to Section 9.04(c) and (z) no
prepayment of the Last Out Term Advances may be made until the First Out Final
Payment Date shall have occurred. Each such prepayment of any Term Advances
shall be applied, first, ratably to the outstanding aggregate principal
amount of the First Out Term Advances in a manner specified by the U.S.
Borrower and, second, after the occurrence of the First Out Final
Payment Date, ratably to the outstanding aggregate principal amount of the Last
Out Term Advances in a manner specified by the U.S. Borrower.

 

(b)                                 Clauses
(i), (ii), (iii) and (v) of Section 2.06(b) of the Credit
Agreement are hereby amended in their respective entireties to read as follows:

 

(b)                                 Mandatory.
(i)  The Borrowers shall, on the earlier of (x) the fifth Business
Day following the delivery of financial information pursuant to Section 5.03(c) 

 

10

 

and (y) the fifth
Business Day after the 90th day following the
end of each Fiscal Year, if the Leverage Ratio for the Measurement Period
ending on the last day of such Fiscal Year exceeds 3.00:1.00, prepay an
aggregate principal amount of the Term Advances comprising part of the same
Borrowings in an amount equal to the remainder of (A) the ECF Percentage
of the amount of Excess Cash Flow for such Fiscal Year minus (B) the
aggregate amount of any optional prepayments of Term Advances or, to the extent
such prepayments permanently reduced the Canadian Revolving Credit Facility or
the U.S. Revolving Credit Facility, as the case may be, the amount of any
optional prepayments of Canadian Revolving Credit Advances or U.S. Revolving
Credit Advances, Swing Line Advances or Letter of Credit Advances, as
applicable, made during such Fiscal Year. Each such prepayment shall be
applied, first, ratably to the outstanding aggregate principal amount of
the First Out Term Advances and pro rata to the remaining installments thereof,
second, ratably to the Canadian Revolving Credit Facility and the U.S.
Revolving Credit Facility as set forth in clause (v) below and, third,
ratably to the outstanding aggregate principal amount of the Last Out Term
Advances and pro rata to the remaining installments thereof.

 

(ii)                                  The
Borrowers shall, on the date of receipt of the Net Cash Proceeds by any Loan
Party or any of its Restricted Subsidiaries from the sale, lease, transfer or
other disposition (other than inventory sold in the ordinary course of
business) of any assets of, or from the incurrence or issuance of any Debt
(excluding any Debt incurred or issued in accordance with Section 5.02(b) other
than (x) any Debt incurred or issued after the Closing Date in accordance
with Section 5.02(b)(i)(A) and (y) any Debt in excess of
$25,000,000 in the aggregate incurred or issued after the Second Amendment
Effective Date in accordance with Section 5.02(b)(iii)(I)) by, any Loan
Party or any of its Restricted Subsidiaries, or from any Recovery Event, prepay
an aggregate principal amount of the Advances comprising part of the same
Borrowings equal to 100% of the amount of such Net Cash Proceeds. Each such
prepayment shall be applied, first, ratably to the outstanding aggregate
principal amount of the First Out Term Advances and pro rata to the remaining
installments thereof, second, in the case of any such sale or other
disposition of assets or Recovery Event, ratably to the Canadian Revolving
Credit Facility and the U.S. Revolving Credit Facility as set forth in clause (v) below
and, third, ratably to the outstanding aggregate principal amount of the
Last Out Term Advances and pro rata to the remaining installments thereof.

 

(iii)                               The
Borrowers shall, on the date of receipt of the Net Cash Proceeds by any Loan
Party or any of its Restricted Subsidiaries from the sale or issuance of any
Equity Interests of the U.S. Borrower (including, without limitation, any
capital contribution) prepay an aggregate principal amount of the Term Advances
comprising part of the same Borrowings equal to such Net Cash Proceeds times (A) 0%
if the Leverage Ratio as of the most recently ended Measurement Period for which
the relevant financial statements have been delivered to the Administrative
Agent is less than 3.00:1.00, (B) 50% if the Leverage Ratio as of the most
recently ended Measurement Period for which the relevant financial statements
have been delivered to the Administrative Agent is less than 3.50:1.00 and
greater than or equal to 3.00:1.00 or (C) 100% otherwise. Each such
prepayment shall be applied, first, ratably to the outstanding aggregate
principal amount of the First Out Term Advances and initially to the next two 

 

11

 

installments thereof and
thereafter pro rata to the remaining installments thereof, second,
ratably to the Canadian Revolving Credit Facility and the U.S. Revolving Credit
Facility as set forth in clause (v) below and, third, ratably to
the outstanding aggregate principal amount of the Last Out Term Advances and
initially to the next two installments thereof and thereafter pro rata to the
remaining installments thereof.

 

(v)                                 Prepayments
of the U.S. Revolving Credit Facility made pursuant to clause (i), (ii), (iii) or
(iv) of this Section 2.06(b) below shall be applied, first,
to prepay Letter of Credit Advances then outstanding until such Advances are
paid in full, second, to prepay Swing Line Advances then outstanding
until such Advances are paid in full and, third, to prepay U.S.
Revolving Credit Advances then outstanding comprising part of the same
Borrowings until such Advances are paid in full; and, in the case of
prepayments of the U.S. Revolving Credit Facility required pursuant to clause (ii) above,
the amount remaining (if any) after the prepayment in full of the Advances then
outstanding (the sum of such prepayment amounts and remaining amount being
referred to herein as the “U.S. Reduction Amount”) may be retained by
the U.S. Borrower and the U.S. Revolving Credit Facility shall be permanently
reduced as set forth in Section 2.05(b)(i). Prepayments of the Canadian
Revolving Credit Facility made pursuant to clause (i), (ii), (iii) or (iv) of
this Section 2.06(b) below shall be applied to prepay Canadian
Revolving Credit Advances then outstanding comprising part of the same
Borrowings until such Advances are paid in full; and, in the case of
prepayments of the Canadian Revolving Credit Facility required pursuant to
clause (ii) above, the amount remaining (if any) after the prepayment in
full of the Advances then outstanding (the sum of such prepayment amounts and
remaining amount being referred to herein as the “Canadian Reduction Amount”)
may be retained by the Canadian Borrower and the Canadian Revolving Credit
Facility shall be permanently reduced as set forth in Section 2.05(b)(i).

 

SECTION 6.                                Amendments to Section 2.11
of the Credit Agreement (Payments and Computations).

 

(a)                                  Section 2.11(b) of
the Credit Agreement is hereby amended by deleting the “.” at the end thereof
and substituting in lieu thereof the following:

 

, provided that any application by the Administrative Agent
shall be subject to Section 2.17.

 

(b)                                 Section 2.11
of the Credit Agreement is hereby amended by inserting the following new
paragraph (h) at the end thereof:

 

(h)                                 Notwithstanding
anything to the contrary herein (including, without limitation, Section 2.11(a),
the U.S. Borrower shall pay interest on the Last Out Term Advances and PIK
Advances in accordance with Section 2.17(b).

 

SECTION 7.                                Amendments to Section 2.13
of the Credit Agreement (Sharing of Payments, Etc.). Section 2.13 of
the Credit Agreement is hereby amended by (a) inserting the 

 

12

 

parenthetical
“(including, without limitation, Section 2.17)” immediately after the
words “Subject to the priority of payments specifically set forth herein or in
any other Loan Document” and (b) inserting the following sentence at the
end thereof:

 

For the avoidance of doubt, the issuance of the Series A
Preferred Stock to the Permitted Investors pursuant to the Last Out Debt
Agreement, the issuance of the Warrant to the Permitted Investors, and the
issuance of any common stock of the U.S. Borrower to the Permitted Investors in
connection with such Warrant shall not be considered a payment on account of 

Obligations that is subject to this Section.

 

SECTION 8.                                Amendment to Article II
of the Credit Agreement (Amounts and Terms of the Advances and the Letters of
Credit). Article II of the Credit Agreement is hereby amended by
inserting the following new Section 2.17 at the end thereof:

 

SECTION 2.17  Last Out
Term Advances. Notwithstanding anything to the contrary contained herein or
in any other Loan Document, in order to reflect the last out nature of the Last
Out Term Advances, the following provisions shall apply at all times from and
after the Second Amendment Effective Date (both before and after the filing of
any Insolvency Proceeding):

 

(a)                                  Principal
Payments. Except as otherwise provided in this Agreement, no payment shall
be applied to the principal balance of the Last Out Term Advances (whether as
scheduled amortization, mandatory prepayments, optional prepayments or
otherwise) until the occurrence of the First Out Final Payment Date.
Furthermore, if an Event of Default has occurred and is continuing under Section 7.01(a) or
if the Obligations hereunder have been accelerated (“Payment Default or
Acceleration”), until all First Out Loan Obligations (other than Unmatured
Surviving Obligations) have been paid in full in cash, all payments (including
any payments made with the application of the proceeds of Collateral) shall be
applied only to the First Out Loan Obligations, and then, only upon payment in
full in cash of the First Out Loan Obligations (other than Unmatured Surviving
Obligations), shall payments be applied to the Last Out Loan Obligations.

 

(b)                                 Interest
Payments. The U.S. Borrower shall pay interest on each Last Out Term
Advance of each Last Out Lender on the date on which such interest is due in
accordance with Section 2.07 in cash to the extent contemplated in the
proviso to this sentence and otherwise by a deemed making of a term advance
(the “PIK Advance”) by such Lender in a principal amount equal to the
amount of interest payable on such Last Out Term Advance, provided that (i) interest
accrued through December 31, 2009 on the Last Out Term Advances shall not
be paid in cash and (ii) with respect to any interest accrued on the Last
Out Term Advances during any Fiscal Quarter thereafter, such interest shall be
paid in cash on the date on which such interest is due in accordance with Section 2.07
if (A) Average Liquidity as of the last day of the immediately preceding
Fiscal Quarter minus the amount of interest then
due and any interest previously paid in 

 

13

 

cash in respect of Last
Out Term Advances and PIK Advances during such Fiscal Quarter is greater than
$50,000,000, (B) the U.S. Borrower and its Restricted Subsidiaries were in
compliance with the covenants contained in Section 5.04 at the end of the
most recently ended Fiscal Quarter for which financial statements were
delivered to the Administrative Agent pursuant to Section 5.03(b) or
5.03(c), as shown on the certificate delivered pursuant to such Section, and (C) prior
to the date of such interest payment (and in any event promptly after request
to the U.S. Borrower by a Last Out Lender), the U.S. Borrower shall have
delivered to the Administrative Agent a certificate of a Responsible Officer of
the U.S. Borrower, which certificate shall attach calculations of Average
Liquidity as of the last day of the immediately preceding Fiscal Quarter. For
the avoidance of doubt, it is understood and agreed that if, on any date on
which interest on the Last Out Term Advances or PIK Advances is due in
accordance with Section 2.07, cash interest is not permitted to be paid in
accordance with the preceding sentence, the U.S. Borrower shall issue a PIK
Advance on such date in a principal amount equal to the amount of interest
payable on such Last Out Term Advances or PIK Advances, as applicable.

 

                                                Each
PIK Advance (i) shall bear interest at the rates per annum for PIK Advances
provided in Section 2.07 from the date on which such PIK Advance shall
have been deemed made, (ii) shall be due and payable on January 31,
2012 and (iii) shall be deemed to be a First Out Loan Obligation, except
that (A) PIK Advances shall not be prepaid pursuant to Section 2.06, (B) PIK
Advances shall not be included for purposes of the definitions of Majority
Lenders and Majority Facility Lenders and (C) interest on PIK Advances
shall be paid either in cash or by a deemed making of an additional PIK Advance
on the same terms and conditions applicable to the payment of interest on Last
Out Term Advances pursuant to the preceding paragraph. Each PIK Advance shall
have the same Interest Period as the Advance in respect of which such PIK
Advance was made, without regard to the minimum amounts referred to in Section 2.02(c).
The obligation of the U.S. Borrower to pay PIK Advances shall be automatically
evidenced by this Agreement. Each Last Out Lender agrees that the pro rata
payment provisions of Section 2.11 shall not be applicable to it in
respect of any cash interest payments made by the U.S. Borrower, except to the
extent interest on the Last Out Term Advances or the PIK Advances is payable in
cash as permitted by this paragraph (b).

 

(c)                                  Turnover.
Until the occurrence of the First Out Final Payment Date, any payment or
Collateral proceeds that may be received by any Last Out Lender in violation of
this Agreement shall be segregated and held in trust and promptly paid over to
the Administrative Agent, for the benefit of the First Out Lenders, in the same
form as received, with any necessary endorsements, and each Last Out Lender
hereby authorizes the Administrative Agent to make any such endorsements (which
authorization, being coupled with an interest, is irrevocable). For avoidance
of doubt, receipt of the common stock of the U.S. Borrower in connection with
an exercise of the Warrant shall not be deemed a “payment” hereunder.

 

14

 

(d)                                 Liens.
No Last Out Lender shall object to or contest, or support any other Person in
contesting or objecting to, in any proceeding (including without limitation,
any Insolvency Proceeding), the validity, extent, perfection, priority or
enforceability of any security interest in the Collateral. Notwithstanding any
failure by the Administrative Agent or any other Secured Party to perfect its
security interests in the Collateral or any avoidance, invalidation or
subordination by any third party or court of competent jurisdiction of the
security interests in the Collateral, the priority and rights as between the
First Out Lenders and the Last Out Lenders with respect to any proceeds of the
Collateral shall be as set forth in this Agreement.

 

(e)                                  Exclusive
Enforcement. Until the First Out Final Payment Date has occurred, whether
or not an Insolvency Proceeding has been commenced by or against any Loan
Party, the Administrative Agent and the First Out Lenders shall have the
exclusive right to take and continue any Enforcement Action with respect to the

Collateral, without any
consultation with or consent of any Last Out Lender. Upon the occurrence and
during the continuance of a Payment Default or Acceleration, the Administrative
Agent and the First Out Lenders may take and continue any Enforcement Action
with respect to the First Out Loan Obligations and the Collateral in such order
and manner as they may determine in their sole discretion.

 

(f)                                    Judgment
Creditors. In the event that any Last Out Lender becomes a judgment lien
creditor in respect of any Collateral as a result of its enforcement of its
rights as an unsecured creditor, such judgment lien shall be subject to the
terms of this Agreement for all purposes (including in relation to the First
Out Loan Obligations) to the same extent as the Last Out Loan Obligations are
subject to the terms of this Agreement.

 

(g)                                 Asset
Sales. If an Event of Default has occurred and is continuing, and the First
Out Lenders have commenced the exercise of remedies as a result of such Event
of Default, the First Out Lenders shall have the right to control any consent
to an asset sale or other disposition, in each case, made in connection with
such remedies exercise, that is not currently permitted hereunder, and the Last
Out Lenders shall be deemed to have consented to any such asset sale or other
disposition that has been consented to by the First Out Requisite Lenders, provided
that if the application of the proceeds of such asset sale or other disposition
would result in the payment-in-full in cash of the First Out Loan Obligations,
but less than the payment-in-full in cash of the Last Out Loan Obligations, the
Last Out Lenders shall have the ability to purchase the First Out Loan
Obligations hereunder of the First Out Lenders at par in accordance with the
provisions of Section 9.07.

 

(h)                                 Bankruptcy.
In the event of an Insolvency Proceeding or liquidation of any Loan Party,
whether voluntary or involuntary:

 

15

 

(i)                  the First Out
Requisite Lenders shall have the right to consent to the use of cash collateral
or either Borrower obtaining debtor-in-possession financing (a “DIP
Financing”), and the Last Out Lenders shall have no right to vote or
otherwise consent (or object) thereto hereunder or under any other Loan
Documents. The Last Out Lenders shall not be restricted from filing an
objection with the bankruptcy court to such a proposed use of cash collateral
or DIP Financing; provided that the Last Out Lenders shall not object on
the basis of either (A) a lack of adequate protection of their interests
in the collateral securing the Obligations hereunder if in connection with such
cash collateral use or DIP Financing the Last Out Lenders are provided adequate
protection comprised of replacement liens and superpriority claims to the same
extent as provided to the First Out Lenders, but in each case junior to the
replacement liens and superpriority claims granted to the First Out Lenders and
provided that the Last Out Lenders agree, pursuant to Section 1129(a)(9) of
the Bankruptcy Code, that any such superpriority claim may be paid under any
plan of reorganization in any combination of cash, debt, equity or other
property having a value on the effective date of such plan equal to the allowed
amount of such claims or (B) the incremental amount of such DIP Financing
(i.e., in the case of a “rollup” DIP Financing, the amount in excess of the sum
of the amount of Obligations hereunder outstanding at the date bankruptcy is
filed, or in the case of a standalone DIP Financing, the total amount of such
DIP Financing) so long as such incremental amount does not exceed $75,000,000;

 

(ii)               all First Out Loan
Obligations (including, without limitation, all Post-Petition Interest and
Expenses but excluding any Unmatured Surviving Obligations) shall be paid in
full in cash from distributions, Collateral proceeds or other amounts paid to
the Lenders prior to any distributions, Collateral proceeds or other amounts
being paid in respect to the Last Out Loan Obligations; and

 

(iii)            except as otherwise
expressly set forth herein or in any other Loan Document, the Last Out Lenders
may exercise rights and remedies as unsecured creditors against any Loan Party
in an Insolvency Proceeding.

 

(i)                                     Voting
Rights. The Last Out Lenders shall be deemed to have consented to any
acceleration of the Obligations hereunder that is consented to or requested by
the First Out Requisite Lenders. Upon the occurrence and during the continuance
of an Event of Default under Section 7.01(a), the Last Out Lenders shall
be deemed to have consented to any amendment, waiver or other modification to
this Agreement or any other Loan Document that is consented to by the First Out
Requisite Lenders during such time, other than any amendment, waiver or other
modification that (i) requires the consent of each affected Lender in
accordance with clause (b) of the proviso in the first paragraph of Section 9.01;
(ii) requires the consent of the Majority Facility Lenders in accordance
with clause (c)(ii) of the proviso in the first paragraph of Section 9.01;
(iii) disproportionately and adversely affects the Last Out Loan
Obligations (other 

 

16

 

than as a result of the
subordination provided for in this Section) unless such amendment or other
modification is supported by the Last Out Requisite Lenders; or (iv) amends
Section 2.16 unless either (1) such amendment or other modification
is supported by the Last Out Requisite Lenders or (2) the terms of such
Debt are identical to those applicable to the Last Out Term Advances (including
the terms described in this Section). For the avoidance of doubt, the Last Out
Lenders shall be entitled to receive their pro rata share of all amendment fees
on those amendments on which the Last Out Lenders are entitled to vote, are not
deemed to have consented as provided above, and on which the Last Out Lenders
vote affirmatively. If, after the Second Amendment Effective Date, a Permitted
Investor becomes a First Out Lender, it shall, in such capacity, be deemed to
have consented to any amendment, waiver or other modification to this Agreement
or any other Loan Document that is consented to by the First Out Requisite
Lenders during such time, other than any amendment, waiver or other
modification that requires the consent of each affected Lender in accordance
with clause (b) of the proviso in the first paragraph of Section 9.01.

 

(j)                                     Lender
Meetings and Information. The First Out Lenders shall have the right to
exclude the Last Out Lenders from any meeting of First Out Lenders for any
reason. In addition, the Administrative Agent shall have no obligation to
provide the Last Out Lenders any information distributed with respect to any
such meeting.

 

(k)                                  Assignment.
The Last Out Loan Lenders may assign the PIK Advances and the other Last Out
Term Advances in accordance with the provisions of Section 9.07, provided
that (i) PIK Advances shall continue to 

be PIK Advances, (i) Last
Out Term Advances shall continue to be Last Out Term Advances and (iii) the
assignee of such Advances shall be bound to the terms of the Credit Agreement,
including this Section 2.17.

 

(l)                                     Reliance,
Etc. The provisions of this Section 2.17 constitute a “subordination
agreement” for purposes of Section 510(a) of the Bankruptcy Code. The
Second Amendment, and the amendments effected thereby, including, without
limitation, the amendments to the financial covenants set forth in Section 5.04,
are deemed to have been agreed to by the Lenders in reliance upon this Section.
No provisions of this Section 2.17 may be amended, waived or otherwise
modified without the prior written consent of the Majority Facility Lenders.

 

SECTION 9.                                Amendment to Section 4.01(a) of
the Credit Agreement (Loan Parties – Due Organization, Etc.). Section 4.01(a) of
the Credit Agreement is hereby amended by deleting therefrom the following
sentence:  “All of the outstanding
capital stock of the U.S. Borrower that is owned by the Investor Group is owned
free and clear of all Liens.”.

 

17

 

SECTION 10.                          Amendment to Section 5.01(i) of
the Credit Agreement (Transactions with Affiliates). Section 5.01(i) of
the Credit Agreement is hereby amended 
in its entirety to read as follows:

 

(i)                                     Transactions
with Affiliates. Conduct, and cause each of its Restricted Subsidiaries to
conduct, all transactions otherwise permitted under the Loan Documents with any
of their Affiliates on terms that are fair and reasonable and no less favorable
to such Borrower or such Restricted Subsidiary than it would obtain in a
comparable arm’s length transaction with a Person not an Affiliate, other than (i) transactions
between or among the Loan Parties and any Restricted Subsidiaries of the U.S.
Borrower; (ii) reasonable and customary fees paid to members of the U.S.
Borrower’s board of directors; (iii) the transactions permitted by Section 5.02(f);
(iv) the transactions contemplated
by the Last Out Debt Agreement, including among other things the issuance of
one share of Series A Preferred Stock which entitles the Permitted
Investors to elect directors of the U.S. Borrower and the issuance of a Warrant
exercisable into shares of common stock representing 25% of the common stock of
the U.S. Borrower on the date of exercise; and (v) transactions
otherwise expressly permitted hereunder.

 

SECTION 11.                          Amendment to Section 5.02(a)(x) of
the Credit Agreement (Liens). Section 5.02(a)(x) of the Credit
Agreement is hereby amended by deleting therefrom the number “$25,000,000” and
substituting in lieu thereof the number “$15,000,000”.

 

SECTION 12.                          Amendments to Section 5.02(b) of
the Credit Agreement (Debt). Section 5.02(b) of the Credit
Agreement is hereby amended by (a) deleting from clauses (i)(C) and
(ii)(B) thereof the number “$25,000,000” and substituting in lieu thereof
the number “$15,000,000”, (b) deleting from clause (iii)(B) thereof
the number “$50,000,000” and substituting in lieu thereof the number “$25,000,000”,
(c) deleting from each of clause (iii)(D) and clause (iii)(F) thereof
the words “150,000,000 in the aggregate at any time outstanding” and
substituting in lieu thereof the following:

 

$50,000,000 in the aggregate at any time outstanding; provided,
further, that, from and after the Second Amendment Effective Date, no
Borrower or Restricted Subsidiary shall be permitted to create, incur, assume
or suffer to exist any Debt in accordance with this clause unless, immediately
after giving effect to such incurrence and such merger or acquisition, the pro
forma Leverage Ratio, calculated based on the relevant financial statements
most recently delivered pursuant to Section 5.03(b) or (c), as though
such incurrence and merger or acquisition had occurred at the beginning of the
Measurement Period covered thereby, as evidenced by a certificate of the chief
financial officer of the U.S. Borrower furnished to the Lender Parties, is less
than the Leverage Ratio at the end of the Fiscal Quarter or Fiscal Year covered
by such financial statements

 

and (d) deleting the “.” at the end of clause
(iii)(I) thereof and substituting in lieu thereof the following new
proviso:

 

, provided that the U.S. Borrower shall apply
the Net Cash Proceeds of any such Debt in excess of $25,000,000 in the
aggregate incurred or issued after the Second Amendment 

 

18

 

Effective Date as a mandatory prepayment of the
Advances in accordance with Section 2.06(b)(ii).

 

SECTION 13.                          Amendments to Section 5.02(d) of
the Credit Agreement (Asset Sales). Section 5.02(d) of the Credit
Agreement is hereby amended by (a) deleting the word “and” at the end of
clause (ii)(B) thereof and substituting a “,” in lieu thereof, (b) deleting
the “;” at the end of clause (ii)(C) thereof and substituting in lieu
thereof the following:

 

and (D) no sale or other disposition of assets shall
be permitted by this clause (ii) unless such disposition is for at least
75% cash consideration;

 

(c) deleting the word “and” at the end of clause (iii) thereof
and (d) deleting the “.” at the end of clause (iv) thereof and
substituting in lieu thereof the following:

 

; and

 

(v)                                 the
sale for fair value of up to $5,000,000 of auction rate securities owned by the
U.S. Borrower or any of its Restricted Subsidiaries on the Second Amendment
Effective Date.

 

SECTION 14.                          Amendment to Section 5.02(e) of
the Credit Agreement (Investments in Other Persons). Clauses (ii), (viii),
(xi) and (xiii) of Section 5.02(e) of the Credit Agreement are hereby
amended in their respective entireties to read as follows:

 

(ii)                                  loans
and advances to employees in the ordinary course of business of the U.S.
Borrower and its Restricted Subsidiaries as presently conducted in an aggregate
amount not to exceed $2,000,000 at any time outstanding and other loans and
advances to employees solely for the purchase of capital stock of the U.S.
Borrower not to exceed $5,000,000 at any time outstanding, provided that
each such loan and advance shall be evidenced by a promissory note which shall
be pledged to the Administrative Agent for the benefit of the Secured Parties
pursuant to the Guarantee and Collateral Agreement as security for the
Obligations of such pledgor hereunder;

 

(viii)                        Investments
in Restricted Subsidiaries or in other Persons that become Restricted
Subsidiaries; provided that with respect to all such Investments (A) immediately
before and after giving effect thereto, no Default shall have occurred and be
continuing or would result therefrom; (B) any business acquired or
invested in pursuant to this clause shall comply with the requirements of Section 5.01(e);
(C) immediately after giving effect to such Investment or the acquisition
of a company or business pursuant to this clause, the U.S. Borrower and its
Restricted Subsidiaries shall be in pro forma compliance with the covenants
contained in Section 5.04, calculated based on the relevant financial
statements most recently delivered pursuant to Section 5.03(b) or
(c), as though such Investment or acquisition had occurred at the beginning of
the Measurement Period covered thereby, as evidenced by a certificate of the
chief financial officer of the U.S. Borrower furnished to the Lender Parties
demonstrating such compliance; (D) such Investments are made in the
Canadian Borrower, in entities that are or become Subsidiary 

 

19

 

Guarantors or in the Mexican Subsidiary, provided
that any such Investments in the Mexican Subsidiary as permitted by this clause
(viii) after the Second Amendment Effective Date shall not exceed
$15,000,000 at any time outstanding plus the aggregate fair market of assets
contributed to the Mexican Subsidiary as permitted by Section 5.02(d)(iii);
and (E) the assets and properties so acquired become, to the extent
required by Section 5.01(j), subject to the Liens of the Collateral
Documents in favor of the Administrative Agent for the benefit of the Secured
Parties;

 

(xi)                                [intentionally
omitted];

 

(xiii)                          other
Investments in an aggregate amount outstanding for all such Investments not to
exceed $25,000,000.

 

SECTION 15.                          Amendment to Section 5.02(f) of
the Credit Agreement (Dividends, Etc.). Section 5.02(f) of the
Credit Agreement is hereby amended in its entirety to read as follows:

 

(f)                                    Dividends,
Etc. In the case only of the U.S. Borrower, declare or pay any dividends,
purchase, redeem, retire, defease or otherwise acquire for value any of its
capital stock or any warrants, rights or options to acquire such capital stock,
now or hereafter outstanding, return any capital to its stockholders as such,
make any distribution of assets, capital stock, warrants, rights, options,
obligations or securities to its stockholders as such, or permit any of its
Subsidiaries to purchase, redeem, retire, defease or otherwise acquire for
value any capital stock of the U.S. Borrower or any warrants, rights or options
to acquire such capital stock or to issue or sell any such capital stock or any
warrants, rights or options to acquire such capital stock, except that, so long
as no Default shall have occurred and be continuing at the time of any action described
below or would result therefrom, (i) the U.S. Borrower may declare and pay
dividends and distributions payable only in common stock of the U.S. Borrower, (ii) the
U.S. Borrower may redeem in whole or in part any capital stock of the U.S.
Borrower for another class of capital stock or rights to acquire capital stock
of the U.S. Borrower or with proceeds from substantially concurrent equity
contributions or issuances of new shares of capital stock; provided that such
other class of capital stock contains terms and provisions at least as
advantageous to the Lender Parties as those contained in the capital stock
redeemed thereby, (iii) the U.S. Borrower may repurchase shares of its
capital stock (and/or options or warrants in respect thereof) held by its
officers, directors and employees, so long as such repurchase is pursuant to,
and in accordance with the terms of, management and/or employee stock plans,
stock subscription agreements on shareholder agreements and (iv) the U.S.
Borrower may issue shares of common stock to the Permitted Investors in respect
of the Warrant (including, if applicable, on a net share settlement basis).

 

SECTION 16.                          Amendment to Section 5.02(g) of
the Credit Agreement (Prepayments, Etc. of Debt). Section 5.02(g) of
the Credit Agreement is hereby amended in its entirety to read as follows:

 

20

 

(g)                                 Prepayments,
Etc., of Debt. Prepay, redeem, purchase, defease or otherwise satisfy prior
to the scheduled maturity thereof in any manner, or make any payment in
violation of any subordination terms of, any Subordinated Debt, other than (i) any
prepayment of Debt owed by any Loan Party to any other Loan Party, (ii) any
exchange of Subordinated Debt for preferred or common stock of the U.S.
Borrower, provided  however that such exchange (A) is made in
satisfaction of any Obligations owed by the U.S. Borrower under, or in
connection with, such Subordinated Debt and (B) shall not result in any
Change of Control and (iii) any exchange of the Senior Subordinated Notes
for Subordinated Debt permitted by Section 5.02(b)(i)(a), provided
that (A) such exchange is made in satisfaction of any Obligations (other
than Obligations which by their terms survive termination of the relevant
documents and are not due and payable) owed by the U.S. Borrower under, or in
connection with, the Senior Subordinated Notes so exchanged and (B) the
annual interest expense required to be paid in cash with respect to such
Subordinated Debt for any calendar year through the Termination Date is not
greater than the annual interest expense required to be paid in cash with
respect to the Senior Subordinated Notes so exchanged immediately prior to such
exchange.

 

SECTION 17.                          Amendment to Section 5.02(j) of
the Credit Agreement (Capital Expenditures). Section 5.02(j) of
the Credit Agreement is hereby in its entirety to read as follows:

 

(j)                                     Capital
Expenditures. From and after the Second Amendment Effective Date, make, or
permit any of its Restricted Subsidiaries to make, any Capital Expenditures
that would cause the aggregate amount of all Capital Expenditures of the U.S.
Borrower and its Restricted Subsidiaries in any Fiscal Year to exceed
$50,000,000, provided that (i) any such amount referred to above,
if not so expended in the Fiscal Year for which it is permitted, may be carried
over for expenditure in the next succeeding Fiscal Year and (ii) Capital
Expenditures made pursuant to this Section during any Fiscal Year shall be
deemed made, first, in respect of amounts permitted for such Fiscal Year
as provided above and, second, in respect of amounts carried over from
the prior Fiscal Year pursuant to clause (i) above.

 

SECTION 18.                          Amendment to Section 5.03
of the Credit Agreement (Reporting Requirements). Section 5.03 of the
Credit Agreement is hereby amended by inserting the following new paragraph (k) at
the end thereof:

 

(k)                                  Monthly
Financials. As soon as available and in any event within 30 days after the
end of each calendar month (commencing with the second Fiscal Quarter of the
2009 Fiscal Year and excluding the last calendar month in any Fiscal Quarter),
a Consolidated management internally generated balance sheet of the U.S.
Borrower and its Restricted Subsidiaries as of the end of such month and the
related Consolidated statements of income and cash flow for the period
commencing at the end of the previous month and ending with the end of such
month, setting forth in comparative form the corresponding figures for the
corresponding period of (A) the preceding Fiscal Year, and 

 

21

 

(B) the applicable
annual forecast delivered pursuant to Section 5.03(d), all in reasonable
detail and duly certified (subject to quarterly adjustments and year-end audit
adjustments) by the chief financial officer of such U.S. Borrower. If Liquidity
as of the end of such month is less than $50,000,000, the U.S. Borrower shall
deliver to the Lender Parties, within five Business Days following the delivery
of such monthly financial statements, a 13-week cash flow forecast in a form
reasonably satisfactory to the Administrative Agent.

 

SECTION 19.                          Amendment to Section 5.04
of the Credit Agreement (Financial Covenants). Section 5.04 of the
Credit Agreement is hereby amended in its entirety to read as follows:

 

SECTION 5.04. Financial
Covenants. So long as any Advance shall remain unpaid, any Letter of Credit
shall be outstanding or any Lender Party shall have any Commitment hereunder,
the U.S. Borrower will:

 

(a)                                  Senior
Secured Leverage Ratio. Maintain at the end of each Fiscal Quarter a Senior
Secured Leverage Ratio of not more than the ratio set forth below for each
Measurement Period set forth below:

 

	
  Measurement

  Period Ending

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2008

  	
   

  	
  6.00:1

  	
   

  
	
  March 31,
  2009

  	
   

  	
  5.75:1

  	
   

  
	
  June 30,
  2009

  	
   

  	
  6.75:1

  	
   

  
	
  September 30,
  2009

  	
   

  	
  7.00:1

  	
   

  
	
  December 31,
  2009

  	
   

  	
  6.00:1

  	
   

  
	
  March 31,
  2010

  	
   

  	
  5.75:1

  	
   

  
	
  June 30,
  2010

  	
   

  	
  5.25:1

  	
   

  
	
  September 30,
  2010

  	
   

  	
  4.50:1

  	
   

  
	
  December 31,
  2010

  	
   

  	
  3.75:1

  	
   

  

 

(b)                                 Leverage
Ratio. Maintain at the end of each Fiscal Quarter (commencing with the
Fiscal Quarter ending March 31, 2011) a Leverage Ratio of not more than
4.00:1.

 

(c)                                  Interest
Coverage Ratio. Maintain at the end of each Fiscal Quarter an Interest
Coverage Ratio of not less than the ratio set forth below for each Measurement
Period set forth below:

 

	
  Measurement

  Period Ending

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2008

  	
   

  	
  1.30:1

  	
   

  
	
  March 31,
  2009

  	
   

  	
  1.15:1

  	
   

  

 

22

 

	
  Measurement

  Period Ending

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  June 30,
  2009

  	
   

  	
  0.90:1

  	
   

  
	
  September 30,
  2009

  	
   

  	
  0.85:1

  	
   

  
	
  December 31,
  2009

  	
   

  	
  0.95:1

  	
   

  
	
  March 31,
  2010

  	
   

  	
  1.10:1

  	
   

  
	
  June 30,
  2010

  	
   

  	
  1.20:1

  	
   

  
	
  September 30,
  2010

  	
   

  	
  1.30:1

  	
   

  
	
  December 31,
  2010

  	
   

  	
  1.45:1

  	
   

  
	
  March 31,
  2011 and thereafter

  	
   

  	
  2.75:1

  	
   

  

 

(d)                                 Fixed
Charge Coverage Ratio. Maintain at the end of each Fiscal Quarter a Fixed
Charge Coverage Ratio of not less than the ratio set forth below for each
Measurement Period set forth below:

 

	
  Measurement

  Period Ending

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2008

  	
   

  	
  0.750:1

  	
   

  
	
  March 31,
  2009

  	
   

  	
  0.750:1

  	
   

  
	
  June 30,
  2009

  	
   

  	
  0.600:1

  	
   

  
	
  September 30,
  2009

  	
   

  	
  0.550:1

  	
   

  
	
  December 31,
  2009

  	
   

  	
  0.580:1

  	
   

  
	
  March 31,
  2010

  	
   

  	
  0.675:1

  	
   

  
	
  June 30,
  2010

  	
   

  	
  0.725:1

  	
   

  
	
  September 30,
  2010

  	
   

  	
  0.800:1

  	
   

  
	
  December 31,
  2010

  	
   

  	
  0.850:1

  	
   

  
	
  March 31,
  2011 and thereafter

  	
   

  	
  1.400:1

  	
   

  

 

SECTION 20.                          Amendment to Section 7.02(a) of
the Credit Agreement (Application of Funds). Section 7.02(a) of
the Credit Agreement is amended in its entirety to read as follows:

 

(a)                                  Any
amounts received on account of the Obligations on or after the occurrence of a
Payment Default or Acceleration shall be applied by the Administrative Agent in
the following order:

 

(i)                                     First,
to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (other than principal and interest, but including
fees and expenses of counsel to the Administrative Agent and the First Out
Lenders) payable to the Administrative Agent and the First Out Lenders ratably
among them in proportion to the amounts described in this clause First
payable to them;

 

23

 

(ii)                                  Second,
to payment of that portion of the First Out Loan Obligations constituting
accrued and unpaid interest on the Advances, ratably among the First Out
Lenders in proportion to the respective amounts described in this clause Second
payable to them;

 

(iii)                               Third,
to payment of that portion of the First Out Loan Obligations constituting
unpaid principal of the Advances and to cash collateralize the aggregate
Available LC Amount of all outstanding Letters of Credit, ratably among the
First Out Lenders in proportion to the respective amounts described in this
clause Third payable to them;

 

(iv)                              Fourth,
to the payment of all other First Out Loan Obligations (other than Unmatured
Surviving Obligations) of the Loan Parties owing under or in respect of the
Loan Documents that are due and payable to the Administrative Agent and the
other Secured Parties on such date, ratably based upon the respective aggregate
amounts of all such First Out Loan Obligations owing to the Administrative
Agent and the other Secured Parties on such date;

 

(v)                                 Fifth,
to payment of that portion of the Last Out Loan Obligations constituting
accrued and unpaid interest on the Last Out Term Advances, ratably among the
Lender Parties in proportion to the respective amounts described in this clause
Fifth payable to them;

 

(vi)                              Sixth,
to payment of that portion of the Last Out Loan Obligations constituting unpaid
principal of the Last Out Term Advances, ratably among the Last Out Lenders in
proportion to the respective amounts described in this clause Sixth
payable to them;

 

(vii)                           Seventh,
to the payment of all other Last Out Loan Obligations (other than Unmatured
Surviving Obligations) of the Loan Parties owing under or in respect of the
Loan Documents that are due and payable to the Last Out Lenders on such date,
ratably based upon the respective aggregate amounts of all such Last Out Loan
Obligations owing to the Last Out Lenders on such date; and

 

(viii)                        Last,
the balance, if any, after all of the Obligations (other than Unmatured
Surviving Obligations) have been indefeasibly paid in full, no Letters of
Credit shall be outstanding that have not been cash collateralized in a manner
satisfactory to the Administrative Agent and the Issuing Bank, no Bank Hedge
Agreements shall remain in effect and the Commitments shall have been
terminated, to the U.S. Borrower or as otherwise required by law.

 

SECTION 21.                          Amendment to Section 9.02(a) of
the Credit Agreement (Notices, Etc.). Section 9.02(a) of the
Credit Agreement is hereby amended by deleting therefrom the following
words:  “, with a copy to KKR at 2800
Sand Hill Road, Suite 200, Menlo Park, CA 
94205, Attn:  Fred Goltz”.

 

24

 

SECTION 22.  Amendment to Section 9.04(b) of
the Credit Agreement (Costs, Expenses). Section 9.04(b) of the
Credit Agreement is hereby amended by deleting therefrom the following
words:  “, including, without limitation,
any acquisition or proposed acquisition by the Investor Group or any of their
Subsidiaries or Affiliates of all or any portion of the stock or substantially
all the assets of such Borrower or any of its Subsidiaries”.

 

SECTION 23.  Amendments to Section 9.07(a) of
the Credit Agreement (Assignments and Participations). Section 9.07(a) of
the Credit Agreement is hereby amended by (a) deleting the word “and” at
the end of clause (iii) thereof and (b) deleting the “.” at the end
of clause (iv) thereof and substituting in lieu thereof the following:

 

and (v) for the avoidance of doubt, (A) any
assignment of Advances that are Last Out Term Advances shall continue to be
Last Out Term Advances, (B) any assignment of Advances that are PIK
Advances shall continue to be PIK Advances, and (C) the related Assignment
and Acceptance shall expressly provide that the Advances so assigned are Last
Out Term Advances or PIK Advances, as the case may be.

 

SECTION 24.  Amendment to Section 1.1(b) of
the Guarantee and Collateral Agreement (Definitions). The definition of “Borrower
Obligations” in Section 1.1(b) of the Guarantee and Collateral
Agreement is hereby amended in its entirety to read as follows:

 

“Borrower Obligations”:  the collective reference to the unpaid
principal of and interest on the Advances, reimbursement obligations in respect
of Letters of Credit and all other Obligations of the Borrowers (including,
without limitation, interest accruing at the then applicable rate provided in
the Credit Agreement after the maturity of the Advances, reimbursement
obligations in respect of Letters of Credit and the other Obligations and
Post-Petition Interest and Expenses) to the Administrative Agent or any Lender
Party (or, in the case of any Bank Hedge Agreement, any Affiliate of any Lender
Party), whether direct or indirect, absolute or contingent, due or to become
due, or now existing or hereafter incurred, which may arise under, out of, or
in connection with, the Credit Agreement, this Agreement, the other Loan
Documents, any Letter of Credit, any Bank Hedge Agreement or any other document
made, delivered or given in connection with any of the foregoing, in each case
whether on account of principal, interest, reimbursement obligations, fees,
indemnities, costs, expenses or otherwise (including, without limitation, all
fees and disbursements of counsel to the Administrative Agent or to the Lender
Parties that are required to be paid by any Borrower pursuant to the terms of
any of the foregoing agreements).

 

SECTION 25.  Amendment to Section 7.5
of the Guarantee and Collateral Agreement (Application of Proceeds). Section 7.5
of the Guarantee and Collateral Agreement is hereby amended in its entirety to
read as follows:

 

7.5           Application of
Proceeds. If an Event of Default shall have occurred and be continuing, the
Administrative Agent shall apply all or any part of Proceeds constituting
Collateral, whether or not held in any Collateral Account, and any proceeds

 

25

 

of the guarantee set forth in Section 2, in payment of the
Obligations in the order set forth in Section 7.02(a) of the Credit
Agreement.

 

SECTION 26.  Waiver. The Lenders
hereby waive any Default or Event of Default arising solely by reason of the
failure of the U.S. Borrower to comply with Section 5.04 (Financial
Covenants) of the Credit Agreement, as in effect immediately prior to the
Second Amendment Effective Date, with respect to Measurement Period ending December 31,
2008; provided that (a) the Senior Secured Leverage Ratio for the
Measurement Period ending December 31, 2008 is not more than 6.00:1, (b) the
Interest Coverage Ratio for the Measurement Period ending December 31,
2008 is not less than 1.30:1 and (c) the Fixed Charge Coverage Ratio for
the Measurement Period ending December 31, 2008 is not less than 0.75:1.

 

SECTION 27.  Conditions to
Effectiveness. This Amendment shall become effective upon the date (the “Second
Amendment Effective Date”) on which the Administrative Agent shall have
received:

 

(a)           this Amendment, executed and
delivered by a duly authorized officer of each Borrower;

 

(b)           a duly completed Lender Addendum, in
the form set forth as Exhibit A hereto, or a facsimile transmission
thereof, executed and delivered by the Majority Lenders, the Majority Facility
Lenders, each Canadian Revolving Credit Lender and each U.S. Revolving Credit
Lender (other than any Defaulting Lender);

 

(c)           an executed Acknowledgment and
Consent, in the form set forth as Exhibit B hereto, or a facsimile
transmission thereof, from each Loan Party other than the Borrowers;

 

(d)           favorable opinions of (i) Latham
and Watkins LLP, U.S. counsel for the Borrowers, (ii) Stephen Martin,
General Counsel of the U.S. Borrower, and (iii) Osler, Hoskin &
Harcourt LLP, Canadian counsel for the Canadian Borrower, in each case in form
and substance reasonably satisfactory to the Administrative Agent;

 

(e)           for the account of each Lender that
is included in the calculation of Majority Lenders or Majority Facility Lenders
and that executes and delivers a Lender Addendum to counsel to the
Administrative Agent by 5:00 P.M., New York City time, on February 2,
2009, an amendment fee in an amount equal to 0.75% of the sum of such Lender’s
U.S. Revolving Commitment, Canadian Revolving Credit Commitment and Term
Advances then outstanding; and

 

(f)            all fees required to be paid, and
all reasonable out-of-pocket expenses for which invoices have been presented
(including reasonable fees, disbursements and other charges of counsel to the
Administrative Agent), on or before the Second Amendment Effective Date.

 

26

 

The Administrative Agent shall notify the Borrowers
and the Lenders of the Second Amendment Effective Date, and such notice shall
be conclusive and binding.

 

SECTION 28.  Effectiveness of Change
in Termination Date. Notwithstanding anything to the contrary contained in
this Amendment, to the extent that the change in the definition of Termination
Date contained in this Amendment postpones the final maturity date for the U.S.
Revolving Credit Facility then (a) if such change is not approved by any
Defaulting Lender that is a U.S. Revolving Credit Lender, such postponement
shall not be enforceable against such Defaulting Lender; and (b) the U.S.
Revolving Credit Commitment of such Defaulting Lender shall terminate on January 31,
2010 without giving effect to such change in the Termination Date and any then
outstanding Advances under the U.S. Revolving Credit Facility owing to such
Defaulting Lender shall be paid in full on January 31, 2010.

 

SECTION 29.  Representations and
Warranties. To induce the Administrative Agent to enter into this Amendment
and to induce the Lenders to consent thereto, each Borrower hereby represents
and warrants to the Administrative Agent and the Lenders that (a) the
representations and warranties made by the Loan Parties in the Loan Documents
are true and correct in all material respects on and as of the Second Amendment
Effective Date, after giving effect to the effectiveness of this Amendment, as
if made on and as of the Second Amendment Effective Date, except to the extent
such representations and warranties expressly relate to a specific earlier
date, in which case such representations and warranties were true and correct
in all material respects as of such earlier date and (b) the most recent
financial statements delivered to the Lender Parties pursuant to Section 5.03(b) of
the Credit Agreement fairly present in all material respects, subject to
year-end audit adjustments, the Consolidated financial condition of the U.S.
Borrower and its Subsidiaries as at September 30, 2008 and the
Consolidated results of the operations of the U.S. Borrower and its
Subsidiaries for the period ended on such date, all in accordance with
generally accepted accounting principles applied on a consistent basis (unless
otherwise expressly noted therein).

 

SECTION 30.  Continuing Effect of
Loan Documents. This Amendment shall not constitute an amendment or waiver
of or consent to any provision of the Credit Agreement or the other Loan Documents
not expressly referred to herein and shall not be construed as an amendment,
waiver or consent to any action on the part of any Borrower or any of its
respective Subsidiaries that would require an amendment, waiver or consent of
the Administrative Agent or the Lenders except as expressly stated herein.
Except as expressly amended or waived hereby, the provisions of the Credit
Agreement and the other Loan Documents are and shall remain in full force and
effect in accordance with their respective terms.

 

SECTION 31.  Counterparts. This
Amendment may be executed by one or more of the parties to this Amendment on
any number of separate counterparts (including by facsimile), and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of an executed signature page of this Amendment by
facsimile transmission shall be effective as delivery of a manually executed
counterpart hereof.

 

27

 

SECTION 32.  GOVERNING LAW. THIS
AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT
SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW
OF THE STATE OF NEW YORK.

 

[The remainder of this page is intentionally
left blank.]

 

28

 

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

 

 

	
   

  	
   

  	
  ACCURIDE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
     /s/
  William M. Lasky

  
	
   

  	
   

  	
   

  	
  Name: William M. Lasky

  
	
   

  	
   

  	
   

  	
  Title:  
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ACCURIDE CANADA INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
     /s/
  David K. Armstrong

  
	
   

  	
   

  	
   

  	
  Name: David K. Armstrong

  
	
   

  	
   

  	
   

  	
  Title:   Vice
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CITICORP USA, INC., as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
     /s/
  C. P. Mahon

  
	
   

  	
   

  	
   

  	
  Name: C. P. Mahon

  
	
   

  	
   

  	
   

  	
  Title:   Vice
  President

  

 

 

EXHIBIT A

TO SECOND AMENDMENT

 

FORM OF LENDER ADDENDUM

 

January 28, 2009

 

Reference is made to (a) the Fourth Amended and
Restated Credit Agreement, dated as of January 31, 2005 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Accuride Corporation, Accuride Canada Inc., the Lenders party thereto,
Citicorp USA, Inc., as Administrative Agent, and the other agents parties
thereto, (b) the Guarantee and Collateral Agreement (as defined in the
Credit Agreement) and (c) the Second Amendment (the “Amendment”) to
which a form of this Lender Addendum is attached as Exhibit A. Unless
otherwise defined herein, terms defined in the Amendment and used herein shall
have the meanings given to them in the Amendment.

 

Upon execution and delivery of this Lender Addendum by
the parties hereto as provided in Section 27 of the Amendment, the
undersigned hereby agrees to all of the provisions of the Amendment and
consents to execution by the Administrative Agent of the Amendment.

 

THIS LENDER ADDENDUM SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

This Lender Addendum may be executed by one or more of
the parties hereto on any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of an executed signature page hereof by facsimile
transmission shall be effective as delivery of a manually executed counterpart
hereof.

 

 

IN WITNESS WHEREOF, the undersigned has caused this
Lender Addendum to be duly executed and delivered by its proper and duly
authorized officer as of the date first written above.

 

 

	
   

  	
   

  
	
   

  	
  Name of Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT B

TO SECOND AMENDMENT

 

LOAN PARTY ACKNOWLEDGMENT AND CONSENT

 

Reference is made to the Credit Agreement described in
the foregoing Amendment (the “Credit Agreement”; terms defined in the
Credit Agreement being used in this Loan Party Acknowledgment and Consent (this
“Acknowledgment and Consent”) with the meanings given to such terms in
the Credit Agreement). Each of the undersigned parties to the Guarantee and
Collateral Agreement and/or one or more other Collateral Documents, in each
case as amended, supplemented or otherwise modified from time to time, hereby (a) consents
to the foregoing Amendment and the transactions contemplated thereby and (b) acknowledges
and agrees that the guarantees and grants of security interests contained in
the Guarantee and Collateral Agreement and other Collateral Documents are, and
shall remain, in full force and effect after giving effect to the foregoing
Amendment and all prior modifications to the Credit Agreement and the Guarantee
and Collateral Agreement.

 

THIS ACKNOWLEDGMENT AND CONSENT SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.

 

 

	
   

  	
  ACCURIDE CUYAHOGA FALLS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ACCURIDE DISTRIBUTING, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ACCURIDE EMI, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  ACCURIDE ERIE L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  AKW GENERAL PARTNER L.L.C., AS

  GENERAL PARTNER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  ACCURIDE CORPORATION, AS MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ACCURIDE HENDERSON LIMITED LIABILITY
  COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  ACCURIDE CORPORATION, AS MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AKW GENERAL PARTNER L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  ACCURIDE CORPORATION, AS MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AOT INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

 

	
   

  	
  ERIE LAND
  HOLDING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BOSTROM HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BOSTROM SEATING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BOSTROM SPECIALTY SEATING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BRILLION IRON WORKS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  FABCO AUTOMOTIVE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  GUNITE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GUNITE EMI CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IMPERIAL GROUP
  HOLDING CORP. - 1

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IMPERIAL GROUP
  HOLDING CORP. - 2

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  IMPERIAL GROUP,
  L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  IMPERIAL GROUP
  HOLDING CORP. – 1, 

  ITS GENERAL PARTNER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JAII MANAGEMENT
  COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TRANSPORTATION
  TECHNOLOGIES INDUSTRIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TRUCK COMPONENTS
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:Exhibit 10.2

 

LAST OUT DEBT
AGREEMENT

 

This LAST OUT DEBT AGREEMENT (this “Agreement”),
dated as of February 4, 2009, is entered into by and between Accuride
Corporation, a Delaware corporation (the “Company”), and Sun Accuride
Debt Investments, LLC  (the “Investor”).  Certain
capitalized terms used herein are defined in Section 4.1 hereof.

 

W  I  T  N  E  S
S  E  T  H:

 

WHEREAS, the Company is a party to that certain Fourth
Amended and Restated Credit Agreement, dated as of January 31, 2005, among
the Company, Accuride Canada Inc., the banks, financial institutions and other
institutional lenders listed on the signature pages thereto, Citicorp USA, Inc.,
and such other agents and arrangers party thereto, as amended by the First
Amendment dated as of November 28, 2007 (the “Credit Agreement”);

 

 WHEREAS, the
Company anticipates that it will be in default of certain financial covenants
in the Credit Agreement as of December 31, 2008 and desired that the
Credit Agreement be amended to reset certain financial covenants and provide
other relief favorable to the Company;

 

WHEREAS, the Investor is a Term Lender under the
Credit Agreement holding loans in the original principal amount of $70,065,846
(the “Term Loans”);

 

WHEREAS, the Company has negotiated an amendment to
the Credit Agreement to reset certain of the financial covenants and provide
other relief favorable to the Company (the Credit Agreement as so amended, the “Amended
Credit Agreement”); and

 

WHEREAS, the Investor is willing to enter into such
amendment on the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the premises, and
of the representations, warranties, covenants and agreements set forth herein,
the parties agree as follows:

 

Section I

 

CLOSING TRANSACTIONS

 

1.1           Closing.  The closing of the Transaction (the “Closing”)
will take place at the offices of Kirkland & Ellis LLP, 200 E. Randolph
Drive, Chicago, Illinois, 60601, at 10:00 a.m., local time, on the date hereof
(the “Closing Date”).

 

1.2           Closing Transactions.  At the Closing:

 

(a)                                  the
Investor, the Company, the Company’s Subsidiaries and the other parties thereto
shall execute and deliver to the other parties thereto the Amended Credit
Agreement;

 

1

 

(b)                                 the
Company shall duly adopt the amended and restated bylaws attached hereto as Annex
A (the “Amended and Restated Bylaws”) and deliver to the Investor a
certified copy thereof, as the Company’s bylaws in effect as of the Closing;

 

(c)                                  the
Company shall file with the Secretary of State of the State of Delaware the
certificate of designation containing the provisions in the form attached
hereto as Annex B (the “Certificate of Designation”) creating a
series of one share of preferred stock designated as Series A Preferred
Stock;

 

(d)                                 the
Company shall deliver to the Investor certified copies of the Company’s
certificate of incorporation and or any document amendatory or supplemental
thereto including the Certificate of Designation, each as in effect at the
Closing;

 

(e)                                  the
Company shall deliver the Series A Preferred Share (the “Preferred
Share”) to the Investor;

 

(f)                                    the
Company shall execute and deliver the warrant attached hereto as Annex C
(the “Warrant”, and together with the Preferred Share, the “Issued
Securities”) to the Investor;

 

(g)                                 the
Company and the Investor shall each execute and deliver to the other party the
registration agreement attached hereto as Annex D (the “Registration
Rights Agreement”);

 

(h)                                 the
Company and an Affiliate of the Investor shall each execute and deliver to the
other party the consulting agreement attached hereto as Annex E (the “Consulting
Agreement”);

 

(i)                                     the
Company and each of Brian Urbanek, Jason Neimark, Douglas Werking, Thomas
Taylor and Donald Mueller shall each execute and deliver to the other party an
indemnification agreement substantially in the form attached hereto as Annex
F;

 

(j)                                     the
Company shall deliver to the Investor the Indemnification Subordination
Agreements attached hereto as Annex G;

 

(k)                                  the
Company shall deliver to the Investor certified copies of the resolutions duly
adopted by the board of directors of the Company authorizing the execution,
delivery and performance of this Agreement and the transactions contemplated
hereby;

 

(l)                                     the
Company shall deliver to the Investor certified copies of the resolutions duly
adopted by the boards of directors of each Subsidiary of the Company (as
applicable) authorizing the transactions contemplated hereby and the execution,
delivery and performance of any agreements executed by such subsidiary in
connection therewith;

 

(m)                               the
Company shall deliver to the Investor copies of all governmental consents,
approvals and filings required in connection with the consummation of the
transactions hereunder pursuant to the laws of Delaware; and

 

2

 

(n)                                 the
Company shall reimburse the Investor and its Affiliates (together, the “Investor
Parties”) for the fees, costs and expenses
incurred by the Investor Parties as described in Section 3.8
hereof.

 

Section II

 

REPRESENTATIONS AND WARRANTIES

 

2.1           Representations and Warranties of
the Company.  The Company represents
and warrants to the Investor that as of the date hereof and as of the Closing
Date (or such other date specified herein):

 

(a)                                  Organization,
Authority and Significant Subsidiaries. 
The Company is a corporation duly organized, validly existing and in
good standing under the laws of Delaware and is qualified to do business in
every jurisdiction in which its ownership of property or conduct of business
requires it to qualify.  The Company
possesses all requisite corporate power and authority and all material
licenses, permits and authorizations necessary to own and operate its
properties, to carry on its business as now conducted and presently proposed to
be conducted and to carry out the transactions contemplated by this
Agreement.  Each Subsidiary of the
Company has been duly organized and is validly existing in good standing under
the laws of its jurisdiction of organization.

 

(b)                                 Capitalization.

 

(i)                                     The
authorized capital stock of the Company consists of (a) 5,000,000 shares
of preferred stock and (b) 100,000,000 shares of Common Stock.  As of January 23, 2008 (the “Common
Stock Capitalization Date”), zero shares of preferred stock were issued and
outstanding and 36,323,698 shares of Common Stock were issued, of which
36,184,053 were outstanding.  The
36,323,698 shares of issued Common Stock includes 139,645 shares of Common
Stock held by the Company in its treasury account
and 250,000 shares of restricted Common Stock held for the benefit of Mr. William
M. Lasky.  As of the Common Stock
Capitalization Date, there were outstanding (i) options to purchase
549,525 shares of Common Stock, (ii) stock appreciation rights to acquire
809,051 shares of Common Stock, (iii) deferred rights to acquire 8,750
shares of Common Stock, (iv) restricted stock units to acquire 217,883
shares of Common Stock and (v) restricted stock awards to acquire 250,000
shares of Common Stock (as described in the preceding sentence). The
outstanding shares of Common Stock have been duly authorized and are validly
issued and outstanding, fully paid and nonassessable, and subject to no
preemptive rights (and were not issued in violation of any preemptive rights).  Except as set forth above or in connection
with this Agreement, as of the Closing Date, there are no shares of Common
Stock reserved for issuance, the Company does not have outstanding any
securities providing the holder the right to acquire Common Stock and the Company
does not have any commitment to authorize, issue or sell any Common Stock.  Since the Common Stock Capitalization Date,
the Company has not issued any shares of Common Stock, other than upon the
exercise of stock options or delivered under awards granted under the Company’s
2005 Incentive Award Plan, as amended and restated effective September 22,
2008.  As of the Closing Date, the
Company is not subject to any obligation (contingent or otherwise) to 

 

3

 

repurchase or otherwise acquire or retire any shares of its capital
stock or any warrants, options or other rights to acquire its capital stock.

 

(ii)                                  There
are no statutory or contractual stockholder’s preemptive rights or rights of
refusal with respect to the issuance of the Warrant or the issuance of Common
Stock upon exercise of the Warrant.  The
offer and issuance of the Warrant does not require registration or
qualification under the Securities Act of 1933, as amended (the “Securities
Act”), or applicable state securities laws. 
To the best of the Company’s knowledge, there are no agreements in
effect between the Company’s stockholders with respect to the voting or
transfer of the Company’s capital stock, except for the Amended and Restated
Registration Rights Agreement, dated January 31, 2005, by and among the
Company and the stockholders listed on the signature pages thereto.

 

(c)                                  Preferred
Share.   The Company has adopted,
executed and filed the Certificate of Designation in the form attached hereto
as Annex A with the Secretary of State of the State of Delaware, and
such Certificate of Designation is in full force and effect.  The Preferred Share has been duly and validly
authorized, and, when issued and delivered pursuant to this Agreement, the Preferred
Share will be duly and validly issued, fully paid and non-assessable, free from
all taxes, liens and charges and will not be subject to preemptive rights of
any other stockholders of the Company. 
The Preferred Share was issued without violation of any applicable law
or governmental regulation.  The Company
has not adopted or filed any other document designating terms, relative rights
or preferences of its preferred stock other than the Certificate of Designation.

 

(d)                                 The
Warrant and Warrant Shares.  The
Warrant has been duly authorized and, when executed and delivered as
contemplated hereby, will constitute a valid and legally binding obligation of
the Company in accordance with its terms, and the shares of Common Stock
issuable upon exercise of the Warrant (the “Warrant Shares”) have been
duly authorized and reserved for issuance upon exercise of the Warrant and when
so issued will be validly issued, fully paid and non-assessable, free from all
taxes, liens and charges and will not be subject to preemptive rights of any
other stockholders of the Company.

 

(e)                                  Authorization;
No Breach.  The execution, delivery
and performance of this Agreement, the Amended Credit Agreement, the Warrant,
the Registration Rights Agreement, the Consulting Agreement and all other
agreements and instruments contemplated hereby (including the Transaction
Documents) to which the Company is a party and the Certificate of Designation
and Amended and Restated Bylaws have been duly, validly and unanimously
authorized by the board of directors of the Company. This Agreement, the
Amended Credit Agreement, the Warrant, the Registration Rights Agreement, the
Consulting Agreement, the Certificate of Designation and all other agreements
and instruments contemplated hereby (including the Transaction Documents) to
which the Company is a party each constitute a valid and binding obligation of
the Company, enforceable against the Company in accordance with its terms,
except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar law affecting creditors’ rights generally.  The Letter constitutes a valid and binding
obligation of the Specified Director (as defined in Section 3.1(d)),
enforceable against the Specified Director in accordance with its terms.  The Amended and Restated Bylaws attached
hereto as Annex B are in full force and effect as so amended.  The

 

4

 

execution and delivery by the Company of this
Agreement, the Amended Credit Agreement, the Warrant, the Registration Rights
Agreement, the Consulting Agreement and all other agreements and instruments
contemplated hereby to which the Company is a party, the offering  and issuance of the Warrant, the issuance
of Warrant Shares,  the amendment
of the Company’s bylaws and the filing of the Certificate of Designation, and
the fulfillment of and compliance with the respective terms hereof and thereof
by the Company, do not and shall not (i) conflict with or result in a
breach of the terms, conditions or provisions of, (ii) constitute a
default under, (iii) result in the creation of any lien, security
interest, charge or encumbrance upon the Company’s or any of its Subsidiaries’
capital stock or assets pursuant to, (iv) give any third party the right
to modify, terminate or accelerate any obligation under, or (v) require
any authorization, consent, approval, exemption, registration, review by or
other action by or notice or declaration to, or filing (other than any current
report on Form 8-K required to be filed with the SEC) with, any court or
administrative or governmental body or agency pursuant to, the certificate of
incorporation (including the Certificate of Designation) or bylaws of the
Company or any of its Subsidiaries, or any material law, statute, rule or
regulation to which the Company or any of its Subsidiaries are subject, or any
material agreement, instrument, order, judgment or decree to which the Company
or any of its Subsidiaries is subject. 
No other corporate proceedings are necessary for the execution and
delivery by the Company of this Agreement, the performance of its obligations
hereunder or the consummation by it of the transactions contemplated hereby,
except for such proceedings, including obtaining the affirmative vote of the
Company’s stockholders, as may be required by the applicable rules and
regulations of any United States national securities exchange on which any
class of the Company’s capital stock may be listed at the time of exercise of
the Warrant and issuance of the Warrant Shares.

 

(f)                                    Amended
Credit Agreement.  The Company and
its Subsidiaries shall have entered into the Amended Credit Agreement and the
Amended Credit Agreement is in full force and effect.

 

(g)                                 Company
Financial Statements.

 

(i)                                     The
consolidated financial statements of the Company and its consolidated
subsidiaries included or incorporated by reference in the reports and forms
filed with the Securities and Exchange Commission (the “Commission”)
under Sections 13(a), 14(a) or 15(d) of the Securities Exchange Act
of 1934 (the “Exchange Act”) on or after January 1, 2008 and prior
to the Closing (the “SEC Reports”) present fairly in all material
respects the consolidated financial position of the Company and its
consolidated subsidiaries as of the dates indicated therein and the
consolidated results of their operations for the periods specified therein; and
except as stated therein, such financial statements were prepared in conformity
with GAAP applied on a consistent basis (except as may be noted therein).

 

(ii)                                  Deloitte &
Touche LLP, who have certified certain financial statements of the Company and
its Subsidiaries, are independent accountants as required by the Exchange Act
and the rules and regulations of the Commission and the Public Company
Accounting Oversight Board.

 

(h)                                 No
Material Adverse Effect.  To the Company’s knowledge, except as set
forth on Schedule 2.1(h), since December 31, 2007, no fact,
circumstance, event, change, 

 

5

 

occurrence, condition or development has occurred that, individually or
in the aggregate, has had or would be reasonably likely to have a material
adverse effect on the financial condition of the Company and its Subsidiaries,
taken as a whole.

 

(i)                                     Reports.

 

(i)                                     Since
December 31, 2007, the Company has complied in all material respects with
the filing requirements of Sections 13(a), 14(a) and 15(d) of the
Exchange Act.

 

(ii)                                  The
SEC Reports, when they became effective or were filed with the Commission, as
the case may be, conformed in all material respects to the requirements of the
Securities Act or the Exchange Act, as applicable, and the rules and
regulations of the Commission thereunder, and none of such documents, when they
became effective or were filed with the Commission, contained an untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances in which they were made, not misleading.

 

(j)                                     Amended
Credit Agreement Representations and Warranties.  Each of the Company’s representations and
warranties set forth in the Amended Credit Agreement, as modified by the
disclosure schedules therein, are true and correct as of the date hereof, and
each such representation and warranty is incorporated mutatis mutandis as if
set forth fully in this Agreement and as if applicable to the Investor and this
Agreement.

 

(k)                                  Brokerage.  Except
for fees set forth on Schedule 2.1(k), there are no claims for
brokerage commissions, finders’ fees or similar compensation in connection with
the transactions contemplated by this Agreement based on any arrangement or
agreement binding upon the Company or any of its Subsidiaries.  The Company shall pay, and hold the Investor
harmless against, any liability, loss or expense (including reasonable
attorneys’ fees and out-of-pocket expenses) arising in connection with any such
claim.

 

2.2           Representations and Warranties of
the Investor.  The Investor hereby
represents and warrants to the Company that as of the date hereof and the
Closing Date:

 

(a)                                  Status.  The Investor has been duly organized and is
validly existing as a limited liability company under the laws of Delaware.

 

(b)                                 Authorization;
No Breach.  The execution, delivery
and performance of this Agreement, the Amended Credit Agreement, the
Registration Rights Agreement, and all other agreements and instruments
contemplated hereby to which the Investor is a party have been duly and validly
authorized by all necessary action of the Investor.  This Agreement, the Amended Credit Agreement,
the Registration Rights Agreement, and all other agreements and instruments
contemplated hereby to which the Investor is a party each constitute a valid
and binding obligation of the Investor, enforceable in accordance with its
terms.  The execution and delivery by the Investor of this Agreement, the
Amended Credit Agreement, the Registration Rights Agreement and all other
agreements and instruments contemplated hereby to which the Investor is a
party, and the fulfillment of and compliance with the respective terms hereof
and thereof by the Investor, do not and shall not (i) conflict with or
result in a breach of the terms, 

 

6

 

conditions or provisions of, (ii) constitute a default under, (iii) result
in the creation of any lien, security interest, charge or encumbrance upon the
Investor’s membership interests or assets pursuant to, (iv) give any third
party the right to modify, terminate or accelerate any obligation under, or (v) require
any authorization, consent, approval, exemption or other action by or notice or
declaration to, or filing (other than any report required to be filed with the
SEC) with, any court or administrative or governmental body or agency pursuant
to, the governing documents of the Investor, or any law, statute, rule or
regulation to which the Investor is subject, or any agreement, instrument,
order, judgment or decree to which the Investor is subject.

 

(c)                                  Accredited
Investor.  The Investor is an
accredited investor within the meaning of Rule 501(a) under the
Securities Act.

 

(d)                                 Investment
Intent.  The Investor will acquire
for investment for the Investor’s own account, not as a nominee or agent, and
not with a view to the resale or distribution
of any part thereof in, or otherwise distributing, the Issued Securities.

 

(e)                                  Investor
Capacity.  The Investor is able to bear the economic risk of an investment in the
Issued Securities and has sufficient net worth to sustain a loss of all of its
investment in the Issued Securities if such a loss should occur.

 

(f)                                    Due Diligence.  The
Investor has had adequate opportunity to obtain documents, records and
information from and to ask questions of, and receive answers from, the Company’s
officers, employees, agents, accountants and representatives concerning the
business, operations, financial condition, assets, liabilities and all other
matters relating to the Company and its Subsidiaries relevant to its investment
in the Issued Securities (it being understood by the Company that the Investor
is relying on the representations, warranties, covenants and other provisions
in this Agreement and the other documents and agreements contemplated hereunder
and nothing in this Section 2.2(f) shall limit the Investor’s
rights with respect to breaches of representations, warranties, covenants and
other provisions in this Agreement and the other documents and agreements
contemplated hereunder).

 

(g)                                 Unregistered
Securities.  The Investor understands
and hereby acknowledges that it is aware that the Issued Securities have not
been registered under the Securities Act or any similar state securities laws
and that the Issued Securities will be issued by the Company in reliance upon
exemptions from the registration requirements of such laws.  The Investor further understands and
acknowledges that all representations, warranties and agreements made herein
form, in part, the basis for the foregoing exemptions under the Securities Act
and the applicable state securities laws, and that in issuing the Issued
Securities to the Investor, the Company has relied on all representations,
warranties and agreements of the Investor contained herein.

 

(h)                                 Certain
Tax Matters.  The Investor does
hereby acknowledge that it (i) has reviewed with its own tax advisors the
federal, state, local and foreign tax consequences to it of an investment in
the Issued Securities, (ii) is relying solely on such advisors and not on
any statements or representations of the Company or any of their agents in
connection therewith and (iii) understands that it shall be responsible
for its own tax liability that may arise as a result of this investment in the
Issued Securities.

 

7

 

Section III

 

ADDITIONAL AGREEMENTS

3.1           Governance Matters.

 

(a)                                  In
connection with the increase in size of the Company’s board of directors
contemplated by the Amended and Restated Bylaws, the Investor shall have the
right to nominate one person (who is not an officer or an Affiliate of any
Investor Party) (the “Independent Director”) for election to the board
of directors of the Company at the next annual meeting of the Company’s
stockholders at which directors are elected (the “Annual Meeting”); provided,
that in the case that a qualified Independent Director has not been identified
in time for inclusion in a proxy statement relating to the Annual Meeting, the
Investor shall use commercially reasonable efforts to promptly identify a
qualified candidate to serve as the Independent Director following the Annual
Meeting, at which point the Company will promptly (and in no event more than
five (5) business days after the nomination of the Independent Director by
the Investor) cause the Independent Director to be elected or appointed to its
board of directors.  Such Independent
Director shall meet the standards for independence set forth in the New York
Stock Exchange Listed Company Manual Section 303A.00, including with
respect to the Investor and any of its Affiliates.  After such appointment, so long as the
Investor Parties in the aggregate hold at least 10% of the outstanding Common
Stock (including for this purpose, shares of Common Stock issuable upon
exercise of the Warrant any other warrants, options or similar rights held by
the Investor Parties, but excluding, for avoidance of doubt, any other
warrants, options or similar rights held by any other Persons), unless the
Investor gives its written consent otherwise, the Company will be required to
recommend to its stockholders the election of the Independent Director to the
board of directors at future annual meetings. 
Unless the Investor gives written consent otherwise, the Company shall
use commercially reasonable efforts to have the Independent Director elected as
a director of the Company and the Company shall solicit proxies for such person
to the same extent as it does for any of its other nominees to the board of
directors.

 

(b)                                 For
as long as the Preferred Share is outstanding, (i) the holder of the Preferred Share shall have the sole right to
nominate, and shall, as promptly as practicable, nominate, candidates to fill vacancies resulting from the death,
resignation, retirement, disqualification, removal or other cause of any
director elected by the holder of the Preferred Share (all such directors,
together with any person who replaced any of such directors, the “Series A
Directors”) or the Independent Director, (ii) the majority vote of the Series A Directors then in office shall
be required for the board of directors to fill any vacancies on the board
resulting from the death, resignation, retirement, disqualification, removal or
other cause of any of the Series A Directors or the Independent Director,
and (iii) the majority vote of the Common Directors then in office
shall be required for the board of directors to fill any vacancies on the board
resulting from the death, resignation, retirement, disqualification, removal or
other cause of any director who is a Common Director, or to nominate any
candidate to be considered for any such vacancy, and the Common Directors
shall, as promptly as practicable, nominate candidates to fill any such
vacancies.  In addition, for as long as
the Preferred Share is outstanding, the majority vote of the Common Directors
then in office shall be required for the 

 

8

 

board of directors to nominate any person for election as a Common
Director at an annual or special meeting of stockholders.

 

(c)                                  The
Independent Director and the Series A Directors shall be entitled to the
same compensation and same indemnification in connection with his or her role
as a director as the other members of the board of directors, and the
Independent Director and the directors elected by the Investor shall be
entitled to reimbursement for documented, reasonable out-of-pocket expenses
incurred in attending meetings of the board of directors or any committees
thereof, to the same extent as the other members of the Board of
Directors.  The Company shall notify the
Independent Director and the Series A Directors of all regular and special
meetings of any committee of the board directors of which any of them is a
member.  The Company shall provide the
Independent Director and the Series A Directors elected by the Investor
with copies of all notices, minutes, consents and other materials provided to
all other members of the board of directors concurrently as such materials are
provided to the other members.

 

(d)                                 In
lieu of requiring the board of directors to appoint a new director meeting the
standards for independence set forth in the New York Stock Exchange Listed
Company Manual Section 303A.00 at the Closing, it is hereby agreed that
the six directors on the board immediately prior to the Closing shall remain on
the board following the Closing; provided, that until such time as one
of those six directors has been replaced by a new director meeting the
standards of independence set forth in the New York Stock Exchange Listed
Company Manual Section 303A.00 and so long as the Investor Parties hold at
least 10% of the outstanding Common Stock (including for this purpose shares of
Common Stock issuable upon exercise of the Warrant or any other warrants,
options or similar rights), the Investor shall have the right to require the
Common Directors promptly, but in no event later than the date that is three (3) weeks
from the date of such request (such date, the “Resignation Deadline”),
to identify one Common Director who shall deliver his or her resignation to,
and whose resignation shall be accepted by, the Company by the Resignation
Deadline.  If no such resignation has
been delivered to, and accepted by, the Company by the Resignation Deadline,
the letter previously delivered to the Company by one its directors (the “Letter”)
shall become effective, and the director who delivered the Letter (the “Specified
Director”) shall no longer be a director of the Company.  Following such resignation or removal, any
candidate nominated to fill the resulting vacancy shall meet the standards for
independence set forth in the New York Stock Exchange Listed Company Manual Section 303A.00
and the majority vote of the Common Directors then in office shall be required
for the board of directors to nominate such candidate and to fill such
vacancy.  The Common Directors shall
nominate such candidate as promptly as practicable following such resignation
or removal.  The Company shall take all
such action necessary or reasonably requested by the Investor to cause the
resignation required by, or to otherwise effectuate the provisions of, this Section 3.1(d).

 

3.2           Directors and Officers Insurance.

 

(a)                                  For
so long as any Series A Director serves on the Company’s board of
directors and for a period of six years after the date on which the Series A
Directors cease to serve on the Company’s board of directors, the Company shall
not amend, repeal or otherwise modify any provision in the Company’s
certificate of incorporation or bylaws (or equivalent or 

 

9

 

related governing documents) relating to the exculpation or
indemnification of any officers and/or directors in any manner that would
adversely affect, limit or restrict the rights of such directors and/or
officers thereunder, it being the intent of the parties that the Series A
Directors and the Independent Director shall continue to be entitled to such
exculpation and indemnification to the full extent of the law.  For so long as any Series A Director
serves on the Company’s board of directors, the Company shall continue in
effect, and take all other reasonable action necessary to maintain and provide,
“directors and officers” insurance with coverage levels at least as great as
those in effect immediately prior to the Closing and covering the Series A
Directors and the Independent Director; provided, that Company
may adjust and/or reduce such coverage levels from time to time with the prior
approval of a majority of the Series A Directors.  On the date on which no Series A
Director serves on the Company’s board of directors, the Company shall obtain
and fully pay for a “run off” insurance policy or policies in an aggregate
amount equal to $25,000,000, providing “Side A directors and officers”
insurance coverage, inclusive of a difference-in-conditions (DIC) component,
above and beyond the Company’s “directors and officers” insurance in place on
such date for the Series A Directors and the Independent Director with a
claims period of at least six years from such date; provided, however,
that the Company shall not be required to pay a premium for such “run-off”
insurance policy in excess of $300,000 (the “Premium Cap”) (it being
understood and agreed that in the event such “run-off” insurance policy cannot
be obtained for such amount or less, in the aggregate, (a) the Investor, in
its sole discretion, may require the Company to purchase such policy, in which
case the Investor shall be responsible for the amount by which the premium for
such policy exceeds the Premium Cap or (b) if the Investor does not so
elect, the Company shall remain obligated to provide the greatest insurance
coverage as may be obtained for the Premium Cap); and, provided  further, that the Company’s obligation to obtain such “run
off” insurance policy shall be deemed to be discharged if the Company’s board
of directors is replaced upon the closing of a change in control transaction
involving the Company, and “run off” insurance coverage is obtained in
connection with such transaction for the benefit of the Series A Directors
and the Independent Director, unless the Company’s “directors and officers”
insurance coverage is impaired prior to such change of control and subsequent
purchase of “run off” insurance coverage, in which case the Company shall
obtain and fully pay, up to the amount of the Premium Cap, for a “run off”
insurance policy or policies in an aggregate amount equal to such impairment,
up to $25,000,000, providing “Side A directors and officers” insurance
coverage, inclusive of a difference-in-conditions (DIC) component, above and
beyond the Company’s “directors and officers” insurance in place on such date
for the Series A Directors and the Independent Director with a claims
period of at least six years from such date. 
Such “run off” insurance policies shall not be obtained from the insurer
then providing the Company’s general “directors and officers” insurance and
shall be obtained from an insurer rated A- or higher by Moody’s, Standard &
Poor’s, Fitch or a comparable rating agency. 
Prior to obtaining such insurance policies, the Company shall provide
the Investor with opportunity to comment on the policies the Company intends to
obtain, and the Company shall consider implementing the Investor’s comments in
good faith.

 

(b)                                 Following
the Closing, if any additional individuals serve as Series A Directors or
as the Independent Director, the Company shall enter into indemnification
agreements with such individuals substantially in the form of the
indemnification agreements in place at the time with the Company’s other
directors and officers.

 

10

 

(c)                                  The
provisions of this Section 3.2 are intended to be for the benefit
of, and shall be enforceable by, any individual who serves as a Series A
Director or as the Independent Director. 
In the event that the Company or any of its respective successors or
assigns (i) consolidates with or merges into any other Person or (ii) transfers
50% or more of its properties or assets to any Person, then and in each case,
proper provision shall be made so the applicable successors and assigns or
transferees assume the obligations set forth in this Section 3.2.

 

3.3                                 Indemnification.  In consideration of the Investor’s
subordination of term loan indebtedness and the execution and delivery of this
Agreement and in addition to all of the Company’s other obligations under this
Agreement, the Company agrees to indemnify and hold harmless the Investor, its
Affiliates and any other holder of the Preferred Share or the Warrant and all
of their respective officers, directors, members, partners, employees and
agents retained in connection with the transactions contemplated by this
Agreement, and each Person who controls the Investor within the meaning of the
Exchange Act and the rules and regulations promulgated thereunder
(collectively, the “Indemnitees”), to the fullest extent lawful, from
and against any and all actions, causes of action, suits, claims, proceedings,
investigations, losses, costs, penalties, fees, liabilities and damages, and
expenses (including reasonable attorneys’ fees and disbursements) in connection
therewith, irrespective of whether any such Indemnitee is a party to the action
for which indemnification hereunder is sought), and amounts paid in settlement
and other costs (the “Indemnified Liabilities”), incurred by the
Indemnitees or any of them as a result of, or arising out of, or relating to (i) any
inaccuracy in or breach of the Company’s representations and warranties in this
Agreement or any other Transaction Document (ii) the Company’s breach of
agreements or covenants made by the Company in this Agreement or any
Transaction Document or (iii) any action, suit, claim, proceeding or
investigation by any Governmental Entity, stockholder of the Company (or any
other Person (other than the Company) relating to this Agreement or the
transactions contemplated by this Agreement or the other Transaction Documents,
except, with respect to the obligations of the Company pursuant to this clause (iii) of
the foregoing only, to the extent such actions, causes of actions, suits, claims,
proceedings, investigations, losses, costs, penalties, fees, liabilities,
damages and expenses are judicially determined in a final non-appealable order
to have resulted directly and primarily from the gross negligence or willful
misconduct of the Indemnitee.  To the
extent that the foregoing undertaking by the Company may be unenforceable for
any reason, the Company shall make the maximum contribution to the payment and
satisfaction of each of the Indemnified Liabilities which is permissible under applicable
law.  Notwithstanding the foregoing: (a) the
maximum indemnification provided to the Investor under clause (i) of this Section 3.3
shall not exceed $50,000,000 and (b) the Company shall not be liable to
any party otherwise entitled to indemnification pursuant hereto for any
settlement effected by such party without the written consent of the Company,
which consent shall not be unreasonably withheld or delayed.

 

3.4                                 Remedies.  Each holder of the Preferred Share and
Warrant Shares shall have all rights and remedies set forth in this Agreement,
the Certificate of Designation, the Warrant or any other Transaction Documents
and all rights and remedies which such holders have been granted at any time
under any other agreement or contract and all of the rights which such holders
have under any law.  Any Person having
any rights under any provision of this Agreement shall be entitled to enforce
such rights specifically (without posting a bond or other security), to recover
damages by reason of any breach of any provision of this Agreement and to
exercise all other rights granted by law.

 

11

 

3.5                                 No
Amendment to Certain Governing Documents. 
So long as the Investor Parties hold at least 10% of the outstanding
Common Stock (including for this purpose, shares of Common Stock issuable upon
exercise of the Warrant or any other warrants, options or similar rights held
by the Investor Parties, but excluding, for avoidance of doubt, any other
warrants, options or similar rights held by any other Persons), the Company
shall not, without the prior written consent of the Investor, amend, alter or
repeal any of the provisions of the Company’s certificate of incorporation
(including the Certificate of Designation) or bylaws or any document amendatory
or supplemental thereto, whether by merger, consolidation or otherwise, in a
manner that would adversely affect or cause to be terminated (whether by the
exchange or conversion of the Preferred Share for either cash or a share or
shares, or other securities or interests, in another corporation, or other
Person, having the same or different rights than the Preferred Share) the
powers, designations, preferences and relative, participating or other rights
of the Preferred Share other than a merger to effect a bona fide transaction
pursuant to which a 25% or greater interest in the Company (assuming exercise
of all outstanding Dilutive Rights, including the Warrant) is obtained by a
Person that is not an Affiliate of the Company. 
For purposes of this Section 3.5 and Section 4(3) of the
Certificate of Designation, any amendment to any provision of the Company’s
certificate of incorporation (including the Certificate of Designation) or
bylaws or any document amendatory or supplemental thereto that reduces the
corporate governance rights of the Series A Directors shall conclusively be
presumed to adversely affect the rights of the Preferred Share, including the
following provisions of the Company’s bylaws: Section 7(a) (nomination of
directors), Section 8 (special stockholder meetings), Section 18 (number of
directors), Section 20 (vacancies resulting from reasons other than
resignation), Section 21 (vacancies resulting from resignation), Section 22
(removal of directors), Section 23(c) (special meetings of the board), Section
24 (quorum), Section 25 (voting requirements of board)), Section 28 (executive
committee), Section 46 (indemnification) and Section 48 (amendments).

 

3.6                                 Right
of Participation.

 

(a)                                  Notice
and Exercise.  So long as the
Investor Parties hold at least 10% of the outstanding Common Stock (including
for this purpose shares of Common Stock issuable upon exercise of the Warrant
or any other warrants, options or similar rights), the Company shall, prior to
any proposed issuance of any Equity Securities of the type described in clauses
(a) through (c) of the definition of Equity Securities, offer to each
Investor Party, as applicable, for a period of ten (10) days from the date
on which such notice is received by such Investor Party, to purchase at the
same price and for the same consideration for which such securities are to be
issued, such Investor Party’s Applicable Percentage of such Equity Securities.

 

(b)                                 Acceptance.

 

(i)                                     Any
written notice to any Investor Party pursuant to this Section 3.6 shall describe the securities issued
or proposed to be issued by the Company and specify the number or amount of securities
being offered to such Investor Party, the price and the payment and other terms
of the issuance (including the date of closing of the issuance).  Such Investor Party may accept the offer
detailed in such notice as to the full number or amount of securities offered
to it or any lesser number or amount, by written notice given to the Company
prior to the expiration of the ten (10) day period, in which event the
Company shall sell and such Investor 

 

12

 

Party shall buy, upon the terms of the proposed issuance pursuant to Section 3.6(a),
the number or amount of securities agreed to be purchased by such Investor
Party.

 

(ii)                                  The
Company shall be free at any time prior to forty-five (45) days after the date
of its notice of offer to such Investor Party to offer and sell any securities
not agreed by such Investor Party to be purchased by it, for consideration no
less favorable to the Company than those specified in such notice of offer to
such Investor Party.

 

3.7                                 Current
Public Information.  The Company
covenants that it will use commercially reasonable efforts to timely file all
reports and other documents required to be filed by it under the Securities Act
and the Exchange Act and the rules and regulations promulgated by the
Commission thereunder (or, if the Company is not required to file such reports,
it will, upon the request of the Investor Parties, make publicly available such
information as necessary, in the opinion of counsel to the Company, to permit
sales pursuant to Rule 144 or Regulation S under the Securities Act), and it
will use commercially reasonable efforts to take such further action as the
Investor Parties may reasonably request, in each case to the extent required
from time to time to enable any Investor Party to sell the Warrant or Warrant
Shares held by such Investor Party without registration under the Securities
Act, including within the limitation of the exemptions provided by (A) Rule 144
or Regulation S under the Securities Act, as such rules may be amended from
time to time or (B) any successor rule or regulation hereafter adopted by the
Commission.  Upon the written request of
the Investor, the Company will deliver to the Investor a written statement that
it has complied with such requirements.

 

3.8                                 Expenses.  The Company shall pay all fees, costs and
expenses of the Investor Parties (including legal and accounting fees, costs
and expenses) arising in connection with the transactions contemplated hereby
in an amount not to exceed $1,325,000 in the aggregate (it being agreed and
acknowledged that the Investor Parties may incur reimbursable fees, costs and
expenses following the Closing).  For the
avoidance of doubt, it is acknowledged and agreed that the total payments made
by the Company to the Investor Parties pursuant to the preceding sentence and
that certain Letter Agreement, dated as of October 31, 2008 (the “Fee Letter
Agreement”), by and between the Company and Sun Capital Securities Group,
LLC (“Sun Group”), regarding fees and expenses, exclusivity and
termination fee, shall under no circumstances exceed $1,325,000 in the
aggregate.  If at any future date, any
filings or notices under the Hart-Scott-Rodino Antitrust Improvements Act are
required in connection with the Investor Parties’ investment in the Company,
the Company shall take all action reasonably requested by the Investor Parties
in connection therewith and otherwise cooperate with the Investor Parties in
making such filings and/or notices and any fees, costs and expenses of the
Investor Parties in connection therewith shall be borne 50% by the Company and
50% by the Investor Parties.  Damages
suffered by the Investor Parties for a breach of this Agreement shall in no way
be limited by the amounts described in this Section 3.8.

 

3.9                                 Information
Rights.  From the date hereof, until
the date when the Investor Parties hold less than 10% of the outstanding Common
Stock (including for this purpose shares of Common Stock issuable upon exercise
of the Warrant or any other warrants, options or similar rights held by the
Investor):

 

13

 

(a)                                  The
Company shall permit the Investor Parties, upon reasonable notice and during
normal business hours, to (i) visit and inspect any of the properties of
the Company and its Subsidiaries, (ii) examine the corporate and financial
records of the Company and its Subsidiaries and make copies thereof or extracts
therefrom and (iii) discuss the affairs, finances and accounts of any such
corporations with the directors, officers (including the Chief Financial
Officer), key employees and independent accountants of the Company and its
Subsidiaries.  In addition, the Company
shall with reasonable promptness provide the Investor Parties with such other
information, reports and financial data concerning the Company and its
Subsidiaries as may be reasonably requested by the Investor Parties from time
to time.  For the avoidance of doubt, the
Company agrees and acknowledges that such requests shall include the provision
of regular reports to the Investor Parties, which reports shall include
substantially the same information and financial data typically provided to the
Investor Parties by portfolio companies of the Investor Parties, a form of
which has been provided to the Company. 
The presentation of an executed copy of this Agreement by the Investor
to the Company’s independent accountants shall constitute the Company’s
permission to its independent accountants to participate in discussions with
such Persons.

 

(b)                                 Whether
or not any Investor Party is a lender to the Company at such time, concurrently
with the delivery thereof to the Company’s or any of its Subsidiaries’
lender(s), the Company shall deliver to the Investor Parties a copy of all
financial and other information reports furnished to such lender(s).

 

3.10                           No
Impairment.  The Company shall not by
any action, including through any amendment to its certificate of
incorporation, through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of
this Agreement or any other Transaction Document or any other agreement between
the Company and any Investor Party in place from time to time, but will at all
times in good faith assist in carrying out all such actions as may be
reasonably necessary or appropriate to protect the rights of the Investor  Parties against impairment.

 

3.11                           FIRPTA.  The Investor hereby represents and the
Company acknowledges that certain Investor Parties may be foreign entities or
have foreign persons and entities as partners. The Company acknowledges that,
upon the request of a foreign person holding an interest in the Company, the
Company may be required to file or cause to be filed in the future with the
Internal Revenue Service (“IRS”) certain notices and statements required
under Section 1.897 2(h) of the Treasury Regulations.  Upon the request of the Investor, the Company
shall use commercially reasonable efforts to determine whether it is a  “United States real property holding
corporation” within the meaning of Section 897(c)(2) of the IRC.  If the Company determines that it is a
“United States real property holding corporation” within the meaning of Section
897(c)(2) of the IRC, the Company shall (i) promptly notify the Investor in
writing of such determination and (ii) upon written request from the Investor,
use commercially reasonable efforts to provide information and certificates to
the Investor, including such information and certificates as required by the
Investor to comply with its obligations under U.S. federal income tax law,
reasonably related to (x) a determination as to whether the Common Stock is of
a class that is regularly traded (as defined by Sections 1.897 1(n) and 1.897
9T of the Treasury Regulations) on 

 

14

 

an established securities
market (as defined by Section 1.897 1(m) of the Treasury Regulations)
and (y) the Company’s status as a “United States real property holding
corporation.”

 

3.12                           Further
Assurances.  In the event that at any
time after the Closing any further action is necessary or desirable to carry
out the purposes of this Agreement, each of the parties hereto will take such
further action (including the execution and delivery of such further
instruments and documents) as any other party hereto reasonably may
request.  Notwithstanding the foregoing,
if at any time (1) the Certificate of Designation or any portion thereof is
found to be invalid or ineffective, (2) the Company takes the position that the
Certificate of Designation or any portion thereof is invalid or ineffective and
refuses to permit the holder of the Preferred Share to exercise any right provided
for therein or (3) for any other reason the holder of the Preferred Share
otherwise does not receive all of the rights and benefits contemplated by the
Certificate of Designation, then the Company shall take all such other action
as may be requested by the Investor Parties that is required to cause the
Investor Parties, to receive, to the maximum extent permitted by law, the
rights and benefits the Investor Parties anticipated the holder of the
Preferred Share would receive under the Certificate of Designation (it being
agreed and acknowledged that such other action may include, to the fullest
extent permitted by applicable law, adopting a new certificate of designation
and issuing a new security so as to provide the holder of the Preferred Share
with all of the rights and benefits, to the fullest extent permitted by
applicable law, as the Investor anticipated could be received by the holder of
the Preferred Share under the Certificate of Designation, and, if adopting a
new certificate of designation and issuing a new security is not possible for
any reason or if the Company is able to adopt a new certificate of designation
and issue a new security, but such security does not provide the holder of the
Preferred Share with all of the rights and benefits that the Investor
anticipated could be received by the holder of the Preferred Share under the
Certificate of Designation, then so long as the Investor Parties in the
aggregate hold at least 10% of the outstanding Common Stock (including for this
purpose, shares of Common Stock issuable upon exercise of the Warrant or issued
pursuant to this Agreement or any other warrants, options or similar rights
held by the Investor Parties, but excluding, for avoidance of doubt, any other
warrants, options or similar rights held by any other Persons), to the extent
the Investor is prevented from electing any Series A Directors, appointing and
soliciting proxies for, as applicable, for up to five (5) persons nominated by
the Investor to serve on the Company’s board of directors to the same extent as
it does for any of its other nominees to the board of directors).

 

Section IV

 

CERTAIN DEFINITIONS

 

4.1                                 Definitions.  The following terms have the meanings set
forth below:

 

“Affiliates” of any particular Person means any other
Person that directly, or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with such
Person.  For purposes of this definition,
“control” (including the terms “controlling,” “controlled by”
and “under common control with”) means the possession, direct or
indirect, of the power to direct or cause the direction of the management and
policies of a Person, whether through the ownership of voting securities, by
contract or otherwise.

 

15

 

“Applicable Percentage” as applied to any
Investor Party on any date shall mean, a fraction (expressed as a percentage),
the numerator of which is the aggregate number of shares of Common Stock owned
(which for this purpose include shares of Common Stock issuable upon exercise
of the Warrant and any other Dilutive Rights) by such Investor Party on such
date and the denominator of which is the sum of the total number of shares of
Common Stock outstanding on such date plus the total number of shares of Common
Stock issuable upon exercise of any Dilutive Rights, including the Warrant and
other Dilutive Rights held by the Investor and/or its Affiliates.

 

“Common Stock” means the Company’s Common
Stock, par value $.01 per share, and any capital stock of any class of the
Company hereafter authorized which is not limited to a fixed sum or percentage
of par or stated value in respect to the rights of the holders thereof to
participate in dividends or in the distribution of assets upon any liquidation,
dissolution or winding up of the Company; provided, that with respect to
the shares of Common Stock issuable upon the exercise of the Warrant, “Common
Stock” means the Company’s Common Stock, par value $.01 per share.

 

“Dilutive Rights” means options, warrants or other rights to
subscribe for or purchase Common Stock of the Company, to the extent the
exercise price for the foregoing on the applicable date is equal to or less
than the market price of the Company’s Common Stock.

 

“Equity Securities”
shall mean (a) any capital stock of the Company (including Common
Stock), (b) any warrants, options, or other rights to subscribe for or to
acquire, directly or indirectly, capital stock of the Company, whether or not
then exercisable or convertible, (c) any stock, notes, or other securities
or indebtedness which are convertible into or exchangeable for, directly or
indirectly, capital stock of the Company, whether or not then convertible or
exchangeable, (d) any capital stock of the Company issued or issuable upon
the exercise, conversion, or exchange of any of the securities referred to in clauses
(a) through (c) above, and (e) any securities issued
or issuable directly or indirectly with respect to the securities referred to
in clauses (a) through (d) above by way of stock
dividend or stock split or in connection with a combination of shares,
recapitalization, reclassification, merger, consolidation, or other
reorganization.

 

“Person” means an individual, a partnership, a
joint venture, a corporation, a limited liability company, a trust, an
unincorporated organization and a government or any department or agency
thereof.

 

“Subsidiary” means, with respect to any Person,
any corporation, limited liability company, partnership, association or other
business entity of which (i) if a corporation, a majority of the total
voting power of shares of stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned or controlled, directly or indirectly, by that
Person or one or more of the other Subsidiaries of that Person or a combination
thereof, or (ii) if a limited liability company, partnership, association
or other business entity, a majority of the partnership or other similar
ownership interest thereof is at the time owned or controlled, directly or
indirectly, by any Person or one or more Subsidiaries of that Person or a
combination thereof.  For purposes
hereof, a Person or Persons shall be deemed to have a majority ownership
interest in a limited liability 

 

16

 

company, partnership,
association or other business entity if such Person or Persons shall be
allocated a majority of limited liability company, partnership, association or
other business entity gains or losses or shall be or control any managing
director or general partner of such limited liability company, partnership,
association or other business entity.

 

“Transaction Documents” means this Agreement
(including the Annexes hereto), the Amended Credit Agreement, the Registration
Rights Agreement, the Consulting Agreement, and the Indemnification
Subordination Agreements.

 

Section V

 

MISCELLANEOUS

 

5.1                                 Survival
of Representations and Warranties. 
The representations and warranties contained herein or made in writing
by any party in connection herewith shall survive the execution and delivery of
this Agreement and the consummation of the transactions contemplated hereby,
regardless of any investigation made by the Investor on its behalf, as follows:

 

(a)                                  the
representations and warranties in Section 2.1(a) (Organization,
Authorization and Significant Subsidiaries), Section 2.1(b) (Capitalization),
Section 2.1(c) (Preferred Share), Section 2.1(d) (The
Warrant and Warrant Shares), Section 2.1(e) (Authorization; No
Breach), Section 2.1(f) (Amended Credit Agreement), Section 2.1(k) (Brokerage),
Section 2.2(a) (Status), Section 2.2(b) (Authorization;
No Breach), Section 2.2(c), (Accredited Investor), Section 2.2(d) (Investment
Intent), Section 2.2(e) (Investor Capacity), Section 2.2(f) (Due
Diligence), Section 2.2(g) (Unregistered Securities) and Section 2.2(h) (Certain
Tax Matters) shall survive indefinitely; and

 

(b)                                 the
representations and warranties in Section 2.1(g) (Company
Financial Statements), Section 2.1(h) (No Material Adverse
Effect), Section 2.1(i) (Reports) and Section 2.1(j) (Amended
Credit Agreement Representations and Warranties) shall survive for two (2) years
from the Closing Date;

 

provided,
that any representation or warranty in respect of which indemnity may be sought
under Section 3.3 above, and the indemnity with respect thereto, shall
survive the time at which it would otherwise terminate pursuant to this Section
5.1 if notice of the inaccuracy or breach or potential inaccuracy or breach
thereof giving rise to such right or potential right of indemnity shall have
been given to the party against whom such indemnity may be sought prior to such
time.

 

5.2           Amendment.  No amendment of any provision of this
Agreement will be effective unless made in writing and signed by a duly
authorized officer of each party.

 

5.3           Waiver.  The conditions to each party’s obligation to
consummate the Closing are for the sole benefit of such party and may be waived
by such party in whole or in part to the extent permitted by applicable
law.  No waiver will be effective unless
it is in a writing signed by a duly authorized officer of the waiving party
that makes express reference to the provision or provisions subject to such
waiver.

 

 

17

 

5.4                                 Counterparts
and Facsimile.  For the convenience
of the parties hereto, this Agreement may be executed in any number of separate
counterparts, each such counterpart being deemed to be an original instrument,
and all such counterparts will together constitute the same agreement.  Executed signature pages to this Agreement
may be delivered by electronic facsimile (including via electronic mail) and
such facsimiles will be deemed as sufficient as if actual signature pages had
been delivered.

 

5.5                                 Governing
Law.  This Agreement shall be
governed by, and construed and enforced in accordance with, the laws of the
State of Delaware, without giving effect to principles of conflicts of law or
choice of law that would compel the application of the substantive laws of any
other jurisdiction.

 

5.6                                 WAIVER
OF TRIAL BY JURY.  EACH PARTY HERETO
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY LITIGATION, ACTION,
PROCEEDING, CROSS-CLAIM, OR COUNTERCLAIM IN ANY COURT (WHETHER BASED ON
CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF, RELATING TO OR IN CONNECTION WITH
(I) THIS AGREEMENT OR THE VALIDITY, PERFORMANCE, INTERPRETATION, COLLECTION OR
ENFORCEMENT HEREOF OR (II) THE ACTIONS OF THE PARTIES IN THE NEGOTIATION,
AUTHORIZATION, EXECUTION, DELIVERY, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT
HEREOF.

 

5.7                                 Notices.  All notices, demands and other communications
to be given or delivered under or by reason of the provisions of this Agreement
shall be in writing and shall be deemed to have been given (i) when personally
delivered, sent by telecopy (with hard copy to follow); (ii) one day after sent
by reputable overnight express courier (charges prepaid); or (iii) five (5)
days following mailing by certified or registered mail, postage prepaid and
return receipt requested.  Unless another
address is specified in writing, notices, demands and communications to the
Company and the Investor shall be sent to the addresses indicated below.

 

(A)                              If
to the Investor:

 

Sun Accuride Debt Investments, LLC

5200 Town Center Circle, Suite 600

Boca Raton, Florida 33486

Attention: Jason H. Neimark, Brian Urbanek and C.
Deryl Couch

Facsimile: (561) 394-0540

Email: jneimark@suncappart.com,
burbanek@suncappart.com and 

dcouch@suncappart.com

 

and

 

18

 

Sun Accuride Debt Investments, LLC

11111 Santa Monica Blvd., Suite 1050

Los Angeles, California 90025

Attention: Michael J. Satzberg

Facsimile: (310) 473-1119 

Email: msatzberg@suncappart.com

 

with a copy to:

 

Kirkland & Ellis LLP

200 E. Randolph Drive

Chicago, Illinois 60601

Attention: Douglas C. Gessner, P.C., Gerald T. Nowak and Jeremy S. Liss

Facsimile: (312) 861-2200 

Email: dgessner@kirkland.com, gnowak@kirkland.com and jliss@kirkland.com

 

(B)                                If
to the Company:

 

Accuride Corporation

7140 Officer Circle

Evansville, Indiana 47715

Attention: David K. Armstrong

Facsimile: (812) 962-5426

Email: dkarmstr@accuridecorp.com

 

with a copy to:

 

Latham & Watkins LLP

Sears Tower, Suite 5800

233 South Wacker Drive

Chicago, Illinois 60606

Attention: Christopher D. Lueking 

Facsimile: (312) 993-9767

Email: christopher.lueking@lw.com

 

5.8           Entire Agreement.  This Agreement (including the Annexes hereto)
and the other Transaction Documents set forth the entire agreement of the
parties hereto with regard to the subject matter hereof and supersedes and
replaces all prior agreements, understandings and representations, oral or
written, with regard to such matters; provided, that notwithstanding the
foregoing, nothing in this Agreement shall affect any rights any party may have
under the Fee Letter Agreement, except as set forth in Section 3.8, or
that certain Letter Agreement dated as of October 31, 2008 by and between the
Company and Sun Group regarding assignment of indebtedness of the Company.

 

5.9                                 Assignment;
Successors and Assigns.  Neither this
Agreement nor any right, remedy, obligation or liability arising hereunder or
by reason hereof shall be assignable by any party hereto without the prior
written consent of the other parties, and any attempt to assign any 

 

19

 

right, remedy, obligation or liability hereunder
without such consent shall be void, except (i) an assignment, in the case
of a merger or consolidation where such party is not the surviving entity, or a
sale of substantially all of its assets, to the entity which is the survivor of
such merger or consolidation or the purchaser in such sale or (ii) an
assignment by the Investor of any or all of its rights hereunder (including
under any other Transaction Document) to any of its Affiliates (such Affiliate,
an “Affiliate Assignee”).  The
actions of the Investor and/or any Affiliate Assignees shall be aggregated for
purposes of all thresholds and limitations herein and in the Registration
Rights Agreement to the extent (i) the Investor transfers any or all of
its rights hereunder to any Affiliate Assignee prior to the Closing and/or (ii) the
Investor or any Affiliate Assignee transfers any Issued Securities to any
Affiliate Assignee following the Closing. 
All covenants, promises and agreements by or on behalf of the parties
contained in this Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective heirs, legal
representatives, successors and assigns.

 

5.10                           Severability.  If any provision of this Agreement or a
Transaction Document, or the application thereof to any person or circumstance,
is determined by a court of competent jurisdiction to be invalid, void or
unenforceable, the remaining provisions hereof, or the application of such
provision to persons or circumstances other than those as to which it has been
held invalid or unenforceable, will remain in full force and effect and shall
in no way be affected, impaired or invalidated thereby, so long as the economic
or legal substance of the transactions contemplated hereby is not affected in
any manner materially adverse to any party. 
Upon such determination, the parties shall negotiate in good faith in an
effort to agree upon a suitable and equitable substitute provision to effect
the original intent of the parties.

 

5.11                           No
Third-Party Beneficiaries.  Except as
expressly set forth in Section 3.2(c) and Section 3.3, nothing
contained in this Agreement, expressed or implied, is intended to confer upon
any person or entity other than the Company and the Investor, any benefits,
rights, or remedies.

 

5.12                           Interpretation.  The headings contained in this Agreement are
for reference purposes only and are not part of this Agreement.  Whenever the words “include,” “includes” or
“including” are used in this Agreement, they shall be deemed followed by the
words “without limitation.”  No rule of
construction against the draftsperson shall be applied in connection with the
interpretation or enforcement of this Agreement, as this Agreement is the
product of negotiation between sophisticated parties advised by counsel.  Except as expressly stated in this Agreement,
all references to any statute, rule or regulation are to the statute, rule or
regulation as amended, modified, supplemented or replaced from time to time
(and, in the case of statutes, include any rules and regulations promulgated
under the statute) and to any section of any statute, rule or regulation
include any successor to the section.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

20

 

IN WITNESS WHEREOF, the parties hereto have executed
this Last Out Debt Agreement as of the date first written above.

 

 

	
   

  	
  SUN ACCURIDE DEBT INVESTMENTS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Michael J. McConvery

  
	
   

  	
  Name:

  	
  Michael J. McConvery

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ACCURIDE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  William M. Lasky

  
	
   

  	
  Name:

  	
  William M. Lasky

  
	
   

  	
  Title:

  	
  President and Chief Executive Officer 

  

 

Signature Page to Last Out Debt
Agreement

 

 

ANNEX A

 

Amended and Restated Bylaws

 

 

[See Exhibit 3.1]

 

 

 

ANNEX
B

 

Certificate of Designation

 

 

[See Exhibit 3.2]

 

 

ANNEX C

 

Warrant

 

 

[See Exhibit 4.1]

 

 

ANNEX D

 

Registration Rights Agreement

 

 

[See Exhibit 4.2]

 

 

ANNEX E

 

Consulting Agreement

 

 

[See Exhibit 10.3]

 

 

ANNEX F

 

Form of Indemnification Agreement

 

 

[See Exhibit 10.4]

 

 

ANNEX G

 

Indemnification Subordination
Agreements

 

 

[See Exhibits 10.5, 10.6 and 10.7]

 

 

Schedule 2.1(h)

 

The downturn in the United States and global economies
and the related weakness in the overall commercial vehicle market have had
certain adverse effects on the Company’s financial condition, results of
operations and prospects, including:

 

·                  significant declines in customer
demand, sales, revenue and backlog in comparison to historical norms;

 

·                  significant increases in the Company’s cost
of operations, including, without limitation, the cost of energy and raw
materials;

 

·                  less favorable payment and other
terms in agreements with trade creditors;

 

·                  employee-related costs, asset
impairment and other charges related to the Company’s restructuring initiatives
announced in September and December of 2008;

 

·                  a significant reduction in the trading price
of the Company’s Common Stock;

 

·                  a significant reduction in the Company’s
global market capitalization resulting in the delisting of the Company’s Common
Stock from the New York Stock Exchange;

 

·                  an impairment in goodwill and intangibles in
the third quarter of 2008 as disclosed in the Company’s financial statements;

 

·                  reductions in the credit rating of the
Accuride Corporate Family by Moody’s Investor’s Services and Standard &
Poor’s; and

 

·                  the anticipated  lack of compliance with certain financial covenants,
including leverage, interest coverage and fixed charge coverage ratios, under
the Company’s Fourth Amended and Restated Credit Agreement, dated as of January 31,
2005, as amended, among the Company, Accuride Canada Inc., Citicorp USA, Inc.
as administrative agent and the other lenders party thereto, as of December 31,
2008.

 

In addition, the following
factors have also had certain adverse effects on the Company’s financial
condition, results of operations and prospects:

 

·                  the resignation of John R. Murphy as
President and Chief Executive Officer of the Company and the resignation of
Terrence Keating as the Chairman of the board of directors of the Company; and

 

·                  a
lock-out of members of the United Auto Workers at the Company’s Rockford,
Illinois facility beginning in November, 2007 and ending in
March, 2008, resulting in $7,7000,000 of one-time charges in 2008.

 

 

Schedule 2.1(k)

 

Brokerage

 

Fees to be paid to UBS  Securities LLC, as set forth in: (i) the
Letter Agreement, by and among Accuride Corporation and UBS Securities LLC,
dated as November 17, 2008 and (ii) the Letter Agreement, by and
among Accuride Corporation and UBS Securities LLC, dated as of March 19,
2008.

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