Document:

Exhibit
10.2

SECOND
AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

This SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (“Second
Amendment”) dated as of October 20, 2006 is made by and among TRIUMPH GROUP,
INC., a Delaware corporation (the “Borrower”), and PNC BANK, NATIONAL
ASSOCIATION, a national banking association as Administrative Agent for the
Banks under the Amended and Restated Credit Agreement referred to herein
(hereinafter referred to in such capacity as the “Administrative Agent”), BANK
OF AMERICA, N.A., in its capacity as syndication agent for the Banks under such
agreement (hereinafter referred to in such capacity as the “Syndication Agent”),
CITIZENS BANK OF PENNSYLVANIA, in its capacity as documentation agent for the
Banks under such agreement (herein referred to in such capacity as the “Documentation
Agent”) and each of MANUFACTURERS AND TRADERS TRUST COMPANY and JPMORGAN CHASE
BANK, N.A., each in its capacity as Managing Agent for the Banks under such
agreement (hereinafter referred to in such capacity as the “Managing Agent”)
and PNC BANK, NATIONAL ASSOCIATION;  BANK
OF AMERICA, N.A.; CITIZENS BANK OF PENNSYLVANIA; MANUFACTURERS AND TRADERS
TRUST COMPANY; NATIONAL CITY BANK; 
JPMORGAN CHASE BANK, N.A.; SOVEREIGN BANK, BRANCH BANKING AND TRUST
COMPANY; LASALLE BANK NATIONAL ASSOCIATION as the Banks; and PNC CAPITAL
MARKETS, LLC as Lead Arranger.

Reference is made to the Amended and Restated Credit Agreement dated as
of July 27, 2005 by and among the Borrower, the Banks, the Administrative
Agent, the Syndication Agent, the Documentation Agent and the Managing Agents,
as amended pursuant to that First Amendment To Amended And Restated Credit
Agreement dated as of September 18, 2006 (the “Credit Agreement”).  (Capitalized terms used herein not otherwise
defined shall have the meanings provided for in the Credit Agreement.)

The Borrower, the Banks and the Agents have agreed that the Credit
Agreement be amended as provided herein, effective as of the date hereof.

NOW, THEREFORE, in consideration of the foregoing and for other
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto, intending to be legally bound, hereby agree as follows:

1.             Amendments to Credit Agreement.

(a)           Increase
in Revolving Credit Commitments; Amendment to Schedule of Commitments (Schedule
1.1(B)).

Effective on the date hereof (the “Second Amendment
Effective Date”):

(1)           Schedule
1.1(B) to the Credit Agreement is amended and restated as set forth on Schedule
1.1(B) attached hereto and the Revolving Credit Commitments are amended to
reflect the amounts set forth on such revised Schedule 1.1(B).  Each of the parties hereto acknowledges and
agrees that Deutsche Bank Trust Company Americas (“Deutsche Bank”) was a Bank
with a Commitment included on Schedule 1.1(B) to the Credit Agreement in effect
before the Second Amendment Effective Date, but is simultaneously herewith
terminating its Commitment and ceasing to be a Bank under the Credit
Agreement.  Effective on the Second 

 

Amendment Effective Date, Deutsche Bank’s entire
Commitment has been reallocated to other existing Banks such that the
Commitments of the Banks as of the Second Amendment Effective Date is as set
forth on revised Schedule 1.1(B) attached hereto;

(2)           As
per the provisions of Section 10.11.2 (Additional Banks) of the Credit
Agreement, on the Second Amendment Effective Date: (i) the Borrower shall repay
all Revolving Credit Loans, subject to Section 4.5 (Additional Compensation in
Certain Circumstances), and reborrow a like amount; and (ii) all of the Banks
shall participate in such new Revolving Credit Loans and in outstanding Letters
of Credit in accordance with their Ratable Shares as modified on the Second
Amendment Effective Date; and

(3)           The
Borrower shall execute and deliver to each of the Banks whose Revolving Credit
Commitments are changing (each a “Changing Bank”) a new Note as provided in
Section 2(c) of this Second Amendment.

(b)           Amendment
to Pricing Grid (Exhibit 1.1(P)(2)); 
Change in Pricing.

The
pricing grid attached as Exhibit 1.1(P)(1) to the Credit Agreement is
hereby amended and restated to read as set forth on Exhibit 1.1(P)(1)
attached hereto.  The change in pricing
resulting from such amendment shall be effective on the Second Amendment
Effective Date.

(c)           Definitions
(Section 1.1).

(i)            Existing
Definitions.

The
following defined terms contained in Section 1.1 of the Credit Agreement are
hereby amended and restated to read as set forth below:

Expiration Date shall mean, with
respect to the Revolving Credit Commitments, June 30, 2011.

(ii)           New
Definitions.

The
following new defined terms are hereby added to Section 1.1 of the Credit
Agreement to read as set forth below:

Consolidated Senior Indebtedness
shall mean Total Indebtedness less Subordinated Indebtedness.

Second Amendment Effective Date
shall mean the date upon which all of the conditions precedent to the Second
Amendment shall have been met.

Senior Indebtedness to EBITDA Ratio
shall mean the ratio of Consolidated Senior Indebtedness to Consolidated
Adjusted EBITDA.

Subordinated Indebtedness shall mean
(i) Indebtedness of the Borrower under the Convertible Debt Documents (provided
that such Indebtedness shall at all times be 

 2
 

 

subordinated pursuant to the subordination provisions
contained therein), and (ii) any other subordinated Indebtedness of the
Borrower provided that such Indebtedness is subordinated to the Indebtedness
under the Loan Documents on terms acceptable to, and approved in writing by,
the Administrative Agent.

(d)           Right
to Increase Commitments (Section 2.1.2).

The
first sentence of Section 2.1.2 (Right to Increase Commitments) is hereby
amended and restated to read as follows:

“Provided that there is no Event of Default or Potential Default, if
the Borrower wishes to increase the Revolving Credit Commitments, Borrower
shall notify the Administrative Agent thereof, provided that any such increase
shall be in a minimum of $10,000,000 and the aggregate of all such increases
shall not exceed $50,000,000 (excluding in such computation increases in the
Revolving Credit Commitments made on or before the Second Amendment Effective
Date).”

(e)           Maximum
Total Indebtedness to EBITDA Ratio (Section 7.2.16).

Section
7.2.16 (Maximum Total Indebtedness to EBITDA Ratio) of the Credit Agreement is
hereby amended and restated to read as follows:

“7.2.16                    Maximum
Total Indebtedness to EBITDA Ratio.

The
Borrower shall not at any time permit the Total Indebtedness to EBITDA Ratio,
calculated as of the end of each fiscal quarter, to exceed 4.50 to 1.00.”

(f)            Maximum
Senior Indebtedness to EBITDA Ratio (New Section
7.2.23).

A
new Section 7.2.23 (Maximum Senior Indebtedness to EBITDA Ratio) of the Credit
Agreement is hereby added to the Credit Agreement to read as follows:

“7.2.23                    Maximum Senior
Indebtedness to EBITDA Ratio.

The
Borrower shall not at any time permit the Senior Indebtedness to EBITDA Ratio,
calculated as of the end of each fiscal quarter, to exceed 3.0 to 1.00.”

2.     Effectiveness of Second Amendment.  This Second Amendment shall be effective on
the date upon which each of the following conditions precedent has been
satisfied.

(a)           Execution
of this Second Amendment.

This Second Amendment shall have been executed by the Borrower, each of
the Guarantors and each of the Banks.

 3
 

 

(b)           Opinion
of Counsel.

There shall be delivered to the Administrative Agent
for the benefit of each Bank a written opinion of John Wright, counsel for the
Borrower and the Guarantors (who may rely on the opinions of such other counsel
as may be acceptable to the Administrative Agent), dated the date of this
Second Amendment and in form and substance satisfactory to the Administrative
Agent and its counsel as to the
authorization, execution, delivery, no conflict and enforceability of this
Second Amendment and the Credit Agreement as amended hereby.

(c)           New
Revolving Credit Notes.

The Borrower shall have executed and delivered to each
Changing Bank a new Revolving Credit Note in the amount of such Changing Bank’s
Revolving Credit Commitment as amended on the Second Amendment Effective Date.

(d)           Termination
of Deutsche Bank’s Commitment.

The Commitment of Deutsche Bank shall have been
terminated and the Agent shall have received an executed payoff letter in form
and substance acceptable to the Agent from Deutsche Bank with respect to its
termination of Commitment under the Credit Agreement.

(e)           Fees
and Expenses.

The Borrower shall have paid to the Agent (i) for the
account of each Bank (excluding Deutsche Bank), an amendment fee in the amount
of .05% times such Banks Commitment as in effect prior to the Second Amendment
Effective Date, (ii) for the account of each Increasing Bank, a fee in the
amount of .10% times the difference between such Bank’s Commitment immediately
prior to the Second Amendment Effective Date and such Bank’s Commitment
immediately after the Second Amendment Effective Date and (iii) all other fees
and expenses due and payable, including reasonable fees of the Agent’s counsel.

3.             Miscellaneous.

(a)           All of the terms, conditions,
provisions and covenants in the Notes, the Credit Agreement, the Loan
Documents, and all other documents delivered to the Banks and the
Administrative Agent in connection with any of the foregoing documents and
obligations secured thereby shall remain unaltered and in full force and effect
except as modified by this Second Amendment and are hereby ratified and
confirmed.

(b)           This Second Amendment shall be
governed by and construed in accordance with the laws of the Commonwealth of
Pennsylvania.

(c)           The Borrower shall reimburse the
Administrative Agent for all expenses for which the Administrative Agent is
entitled to be reimbursed, including the fees of counsel for the Administrative
Agent in connection with this Second Amendment.

(d)           Each and every one of the terms and
provisions of this Second Amendment shall be binding upon and shall inure to
the benefit of the Borrower, the Banks and the Administrative Agent and their
respective successors and assigns.

 4
 

 

(e)           This Second Amendment may be executed
in one or more counterparts, each of which shall be deemed to be an original as
against any party whose signature appears thereon, and all of which shall
constitute but one and the same instrument.

(f)            The execution and delivery of this
Second Amendment shall not be construed to establish a course of conduct or
imply that any other, future or further waivers, consents or forbearance shall
be considered, provided or agreed to.

(g)           The Borrower represents and warrants
that there exists no Event of Default or Potential Default.

(h)           The Borrower represents and warrants
that all of the Persons required to be “Guarantors” are in fact Guarantors,
have become a party to the Guaranty and Suretyship Agreement by executing and
delivering to the Administrative Agent on behalf of the Banks the guarantor
joinder, and have executed this Second Amendment as of the Second Amendment
Effective Date.

(i)            The Loan Parties hereby represent
and warrant to the Administrative Agent and the Banks that after giving effect
to this Second Amendment, (a) the representations and warranties of the Loan
Parties contained in the Credit Agreement and the other Loan Documents are true
and correct on and as of the Second Amendment Effective Date with the same
force and effect as though made by the Loan Parties on such date, except to the
extent that any such representation or warranty expressly relates solely to a
previous date, and (b) the Loan Parties are in compliance with all terms,
conditions, provisions, and covenants contained in the Credit Agreement and the
other Loan Documents.  This Second
Amendment has been duly executed by an authorized officer of each Loan
Party.  The execution, delivery, and
performance of this Amendment have been duly authorized by all necessary
corporate action, require no governmental approval, and will neither
contravene, conflict with, nor result in the breach of any law, charter,
articles, or certificate of incorporation or organization, bylaws, operating
agreement or other agreement governing or binding upon any of the Loan Parties
or any of their property.  Each Loan
Party is in good standing in its jurisdiction of organization.

 5

 

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

	
  ATTEST:

  	
   

  	
  TRIUMPH GROUP, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ John B. Wright, II

  	
   

  	
  By: 

  	
  /s/ John R. Bartholdson

  	
  (SEAL)

  
	
  Name: 

  	
  John B. Wright, II

  	
   

  	
   

  	
  Name: John R. Bartholdson

  	
   

  	
   

  
	
  Title: 

  	
  Vice President, General Counsel and 

  Secretary

  	
   

  	
  Title: Senior
  Vice President, Chief Financial

  Officer and Treasurer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
										

 

 1
 

 

 

	
  

  	
  PNC BANK, NATIONAL ASSOCIATION, 

  individually and as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank A. Pugliese

  	
   

  
	
   

  	
  Name: 

  	
  Frank A. Pugliese

  	
   

  
	
   

  	
  Title: 

  	
  Senior Vice President

  	
   

  
								

 

 2
 

 

 

	
  

  	
  BANK OF AMERICA, N.A., individually and 

  as Syndication Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary K. Giermek 

  	
   

  
	
   

  	
  Name: Mary K. Giermek

  
	
   

  	
  Title: Senior Vice President

  	
   

  
					

 

 3
 

 

 

	
  

  	
  CITIZENS BANK OF PENNSYLVANIA, 

  individually and as Documentation Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Timothy A. Merriman

  	
   

  
	
   

  	
  Name: Timothy A. Merriman

  
	
   

  	
  Title: Senior Vice President

  	
   

  
					

 

 4
 

 

 

	
  

  	
  MANUFACTURERS AND TRADERS

  TRUST COMPANY, individually and as 

  Managing Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tracey E. Sawyer-Calhoun

  	
   

  
	
   

  	
  Name: Tracey E. Sawyer - Calhoun

  
	
   

  	
  Title: Vice President

  	
   

  
					

 5
 

 

 

	
  

  	
    JP MORGAN
  CHASE BANK, N.A.

  individually and as Managing Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lee P. Brennan

  	
   

  
	
   

  	
  Name:

  	
  Lee P. Brennan

  
	
   

  	
  Title:

  	
  Vice President

  
						

 

 6

 

 

	
   

  	
   

  	
  NATIONAL CITY BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Susan S.
  Callahan

  	 

	
   

  	
   

  	
  Name: 

  	
  Susan S. Callahan

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  
							

 

 7
 

 

 

	
   

  	
   

  	
  SOVEREIGN BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Kimberley
  Tavares

  	 

	
   

  	
   

  	
  Name:

  	
  Kimberley Tavares

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  
							

 

 8
 

 

 

	
  

  	
   

  	
    BRANCH BANKING AND TRUST 

  COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Robert Bass

  	 

	
   

  	
   

  	
  Name:

  	
  Robert Bass

  
	
   

  	
   

  	
  Title: 

  	
  Senior Vice President

  
							

 

 9
 

 

 

	
  

  	
   

  	
  LASALLE BANK NATIONAL 

  ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Nick Lotz

  	 

	
   

  	
   

  	
  Name:

  	
  Nick Lotz

  
	
   

  	
   

  	
  Title: 

  	
  Assistant Vice President

  
							

 

 10
 

 

 

	
   

  	
   

  	
  ACCEPTED AND AGREED BY

  
	
   

  	
   

  	
  GUARANTORS AS FOLLOWS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NU-TECH BRANDS, INC.

  
	
   

  	
   

  	
  TRIUMPH BRANDS, INC.

  
	
   

  	
   

  	
  TRIUMPH GROUP ACQUISITION CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ John R. Bartholdson

  	
   

  
	
   

  	
   

  	
  Name: John R. Bartholdson

  
	
   

  	
   

  	
  Title: President and Treasurer of each of the above 

  named companies

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CBA MARINE SAS

  
	
   

  	
   

  	
  CONSTRUCTIONS BREVETEES D’ALFORTVILLE

  SAS

  
	
   

  	
   

  	
  MGP HOLDINGS SAS

  
	
   

  	
   

  	
  TRIUMPH LOGISTICS-UK, LIMITED (f/k/a Triumph Aftermarket
  Services (Europe) Limited)

  
	
   

  	
   

  	
  TRIUMPH CONTROLS (EUROPE) SAS

  
	
   

  	
   

  	
  TRIUMPH INTERIORS LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ John R. Bartholdson

  	
   

  
	
   

  	
   

  	
  Name: John R. Bartholdson

  
	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TRIUMPH AFTERMARKET SERVICES

  INTERNATIONAL, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ John R. Bartholdson

  	
   

  
	
   

  	
   

  	
  Name: John R. Bartholdson

  
	
   

  	
   

  	
  Title: Director and Treasurer

  
							

 

 11
 

 

 

	
  

  	
   

  	
  TRIUMPH FABRICATIONS - FORT WORTH, INC. (f/k/a
  Aerospace Technologies, Inc.)

  
	
   

  	
   

  	
  CBA ACQUISITION, LLC

  
	
   

  	
   

  	
  TRIUMPH FABRICATIONS - HOT SPRINGS, INC. (f/k/a
  Chem-Fab Corporation)

  
	
   

  	
   

  	
  TRIUMPH PROCESSING, INC. (f/k/a DV Industries, Inc.)

  
	
   

  	
   

  	
  TRIUMPH ACTUATION SYSTEMS - VALENCIA, INC. (f/k/a
  EFS Aerospace, Inc.)

  
	
   

  	
   

  	
  TRIUMPH ACTUATION SYSTEMS, LLC (f/k/a Frisby
  Aerospace, LLC)

  
	
   

  	
   

  	
  TRIUMPH INSTRUMENTS - TETERBORO, INC. (f/k/a Furst
  Aircraft, Inc.)

  
	
   

  	
   

  	
  TRIUMPH ACTUATION SYSTEMS - CONNECTICUT, LLC (f/k/a
  HTD Aerospace, LLC)

  
	
   

  	
   

  	
  HT PARTS, LLC

  
	
   

  	
   

  	
  LAMAR ELECTRO-AIR CORPORATION

  
	
   

  	
   

  	
  TRIUMPH AEROSPACE SYSTEMS - WICHITA, INC. (f/k/a Lee
  Aerospace, Inc.)

  
	
   

  	
   

  	
  TRIUMPH STRUCTURES - KANSAS CITY, INC. (f/k/a
  Nu-Tech Industries, Inc.)

  
	
   

  	
   

  	
  THE TRIUMPH GROUP OPERATIONS, INC.

  
	
   

  	
   

  	
  THE TRIUMPH GROUP OPERATIONS HOLDINGS, INC.

  
	
   

  	
   

  	
  TRIUMPH AEROSPACE SYSTEMS GROUP, INC.

  
	
   

  	
   

  	
  TRIUMPH AFTERMARKET SERVICES GROUP, INC.

  
	
   

  	
   

  	
  TRIUMPH AIRBORNE STRUCTURES, INC. (formerly Airborne
  Nacelle Services, Inc.)

  
	
   

  	
   

  	
  TRIUMPH AVIATIONS, INC.

  
	
   

  	
   

  	
  TRIUMPH FABRICATIONS - SAN DIEGO, INC. (f/k/a
  Triumph Components - San Diego, Inc.)

  
	
   

  	
   

  	
  TRIUMPH COMPOSITE SYSTEMS, INC.

  
	
   

  	
   

  	
  TRIUMPH CONTROLS, LLC (f/k/a Triumph Controls, Inc.)

  
	
   

  	
   

  	
  TRIUMPH ENGINEERED SOLUTIONS, INC. (formerly
  Stolper-Fabralloy Company and Triumph Components - Arizona, Inc. and
  successor by merger to Advanced Materials Technologies, Inc. and Triumph
  Precision, Inc.)

  
	
   

  	
   

  	
  TRIUMPH ENGINEERING SERVICES, INC.

  
	
   

  	
   

  	
  TRIUMPH GEAR SYSTEMS, INC.

  
	
   

  	
   

  	
  TRIUMPH GEAR SYSTEMS - MACOMB, INC. (formerly ACR
  Industries, Inc.)

  
	
   

  	
   

  	
  TRIUMPH GROUP ACQUISITION HOLDINGS, INC.

  
	
   

  	
   

  	
  TRIUMPH INSTRUMENTS, INC. (f/k/a Triumph/JDC
  Company)

  
	
   

  	
   

  	
  TRIUMPH PRECISION CASTINGS CO.

  
	
   

  	
   

  	
  TRIUMPH STRUCTURES - LOS ANGELES, INC. (formerly
  Hydro-Mill Co. and successor by merger to Ralee Engineering Co.)

  
	
   

  	
   

  	
  TRIUMPH THERMAL SYSTEMS, INC.

  
	
   

  	
   

  	
  TRIUMPH TURBINE SERVICES, INC.

  
	
   

  	
   

  	
  TRIUMPH STRUCTURES - WICHITA, INC.

  
	
   

  	
   

  	
  TRIUMPH INTERIORS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ John R. Bartholdson

  	
   

  
	
   

  	
   

  	
  Name: John R. Bartholdson.

  
	
   

  	
   

  	
  Title: Vice President and Treasurer of each of the
  above named companies

  

 

 12

SCHEDULE 1.1(B)

	
  

  

  

  

  BANK NAME

  	
   

  	
  AMOUNT OF

  COMMITMENT

  FOR 

  REVOLVING 

  CREDIT LOANS

  	
   

  	
  PERCENTAGE

  	
   

  
	
  PNC Bank, National Association 

  1600 Market Street, 21st Floor 

  Philadelphia, PA 19103 

  Attention: Frank A. Pugliese 

  Telephone No. (215) 585-5961 

  Telecopier No. (215) 585-6987 

  Email: frank.pugliese@pncbank.com 

   

  and 

   

  PNC Bank, National Association 

  PNC Firstside Center, 4th Floor 

  500 First Avenue 

  Pittsburgh, PA 15219 

  Attention: Lisa Pierce 

  Telephone No. (412) 762-6442 

  Telecopier No. (412) 762-8672 

  Email:
  lisa.pierce@pncbank.com

  	
   

  	
  $

  	
  64,000,000

  	
   

  	
  18.285714285

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citizens Bank of Pennsylvania

  3025 Chemical Road, Suite 300 

  Plymouth Meeting, PA 19462 

  Attention: Tim Merriman 

  Telephone No.: (610) 941-5328) 

  Telecopier No.: (610) 941-4136 

  Email: tim.merriamn@citizensbank.com

  	
   

  	
  $

  	
  60,000,000

  	
   

  	
  17.142857143

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of America, NA 

  10 Light Street 

  Baltimore, MD 21202 

  Attention: Mary Giermek 

  Telephone No.: (410) 605-8181 

  Telecopier No. (410) 539-7508 

  Email:
  mary.giermek@bankofamerica.com

  	
   

  	
  $

  	
  60,000,000

  	
   

  	
  17.142857143

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Manufacturers and Traders Trust Company

  	
   

  	
  $

  	
  35,000,000

  	
   

  	
  10.000000000

  	
  %

  

 

 

	
  BANK NAME

  	
   

  	
  AMOUNT OF

  COMMITMENT

  FOR 

  REVOLVING 

  CREDIT LOANS

  	
   

  	
   

   

   

   

  PERCENTAGE

  	
   

  
	
  2055 South Queen Street 

  York, PA 17406 

  Attention: Tracey
  Sawyer-Calhoun 

  Telephone No.: (717) 771-4927 

  Telecopier No.: (717) 771-4914
  

  Email: tsawyercalhoun@mandtbank.com

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  JPMorgan Chase Bank, N.A. 

  277 Park Avenue, Floor 16 

  New York, NY 10017 

  Attention: Lee Brennan 

  Telephone No.: (212) 622-3623 

  Email: lee.brennan@jpmorgan.com

  	
   

  	
  $

  	
  35,000,000

  	
   

  	
  10.000000000

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  National City Bank

  One South Board Street 

  Philadelphia, PA 19107 

  Attention: Susan Callahan 

  Telephone No.: (267) 256-4040 

  Telecopier No.: (267) 256-4001 

  Email: susan.callahan@nationalcity.com

  	
   

  	
  $

  	
  26,000,000

  	
   

  	
  7.428571429

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sovereign Bank 

  2191 West Union Boulevard, 2nd Floor 

  Bethlehem, PA 18018 

  Attention: Kim Tavares 

  Telephone No.: (610) 317-8693 

  Telecopier No.: (610) 526-6214 

  Email: ktavares@sovereignbank.com

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  7.142857143

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LaSalle Bank National Association 

  150 North Randor Chester Road, Suite A220 

  Randor, PA 19087 

  Attention: Nick Lotz 

  Telephone No.: (484) 254-7120 

  Telecopier No.: (484) 254-7150 

  Email: nick.lotz@abnamro.com

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  7.142857143

  	
  %

  

 

 2
 

 

 

	
   

   

   

   

  BANK NAME

  	
   

  	
  AMOUNT OF

  COMMITMENT

  FOR 

  REVOLVING 

  CREDIT LOANS

  	
   

  	
   

   

   

   

  PERCENTAGE

  	
   

  
	
  Branch Banking and Trust Company 

  200 West Second Street 

  Winston Salem, NC 27101 

  Attention: Roberts Bass 

  Telephone No.: (336) 733-2734 

  Telecopier No.: (336) 733-2740 

  Email: rbass@bbandt.com

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  5.714285714

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  350,000,000

  	
   

  	
  100.000000000

  	
  %

  

 

 3

 

EXHIBIT 1.1(P)(1)

Pricing Grid(1)

	
   

  	
   

  	
  LEVEL I

  	
   

  	
  LEVEL II

  	
   

  	
  LEVEL III

  	
   

  	
  LEVEL IV

  	
   

  	
  LEVEL V

  	
   

  	
  LEVEL VI

  	
   

  
	
  Basis for 

  Pricing

  	
   

  	
  If the Total 

  Indebtedness

  to EBITDA 

  Ratio is less 

  than or equal 

  to 2.00 to 1.

  	
   

  	
  If the Total 

  Indebtedness

  to EBITDA 

  Ratio is 

  greater than 

  2.00 to 1 but 

  less than or 

  equal to 2.50 

  to 1.

  	
   

  	
  If the Total 

  Indebtedness

  to EBITDA 

  Ratio is 

  greater than 

  2.50 to 1 but 

  less than or 

  equal to 3.00 

  to 1.

  	
   

  	
  If the Total 

  Indebtedness

  to EBITDA 

  Ratio is 

  greater than 

  3.00 to 1 but 

  less than or 

  equal to 3.50 

  to 1.

  	
   

  	
  If the Total 

  Indebtedness

  to 

  EBITDA 

  Ratio is 

  greater than 

  3.50 to 1 but 

  less than or 

  equal to 

  4.00 to 1.

  	
   

  	
  If the 

  Company’s 

  Total 

  Indebtedness

  to EBITDA 

  ratio is 

  greater than 

  4.00 to 1.

  	
   

  
	
  Commitment Fee)

  	
   

  	
  17.5

  	
   

  	
  20

  	
   

  	
  25

  	
   

  	
  30

  	
   

  	
  35

  	
   

  	
  40

  	
   

  
	
  Euro-Rate plus

  	
   

  	
  62.5

  	
   

  	
  87.5

  	
   

  	
  112.5

  	
   

  	
  137.5

  	
   

  	
  162.5

  	
   

  	
  200

  	
   

  
	
  Base Rate plus

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  Letter of Credit Fee

  	
   

  	
  62.5

  	
   

  	
  87.5

  	
   

  	
  112.5

  	
   

  	
  137.5

  	
   

  	
  162.5

  	
   

  	
  200

  	
   

  

 

(1)                                 All
prices are expressed in basis points per annum; basis points in “Euro-Rate” and
“Base Rate” rows represent margins added to those rates in computing the
interest rate(s) payable on the Revolving Credit Loans. Pricing levels are
determined quarterly on the basis of the Total Indebtedness to EBITDA Ratio set
forth in the compliance certificates submitted under Section 7.3.3. which shall
be on a pro forma basis to take into account acquisitions made during such
quarter, as more specifically described in Section 7.2.6(ii) and the
requirements set forth in the definition of Consolidated Adjusted EBITDA.  Changes in pricing levels will become
effective on the fifth Business Day following the Administrative Agent’s
receipt of a compliance certificate indicating a change in the Total
Indebtedness to EBITDA Ratio which requires a change in pricing level.EXHIBIT 10.1

[ADESA
LETTERHEAD]

October 20, 2006

Mr. Timothy C. Clayton

Emerging Capital

801 Twelve Oaks Center Drive

Suite 820-C

Wayzata, MN  55391

AMENDMENT
TO ENGAGEMENT LETTER

This letter hereby
amends that certain Engagement Letter (the “Agreement”), dated as of June 12,
2006, between ADESA, Inc. (the “Company”) and Emerging Capital.  The initial term of the Agreement shall be
extended for a term beginning on October 13, 2006 and ending on June 30,
2007.  Either party may terminate the
Agreement upon 30 days’ advance written notice; provided, however, that if the
termination is initiated by the Company before June 30, 2007, the Company will
pay Emerging Capital an amount equal to the product of the period remaining
under the Agreement, as amended, multiplied by the monthly retainer.

In addition to the
2006 ADESA annual incentive bonus plan amounts that Mr. Clayton is eligible for
under the terms and conditions set forth in the Agreement, Mr. Clayton will be
eligible for and participate in the ADESA annual incentive bonus plan
established for the Chief Financial Officer for 2007.  The amount to be paid will be equal to the
pro rata amount of the annual bonus earned for this position.  The pro rata amount will be based on the
amount of time Mr. Clayton serves as the Chief Financial Officer of the Company
in 2007.  It is understood that any
amounts payable under the Agreement related to the 2007 annual incentive bonus
may not be calculated or paid until the end of 2007, which may be after the
term of this Agreement.

This amendment shall become effective as of the date
hereof.  Except as expressly amended and
modified by this amendment, all provisions of the Agreement shall remain in
full force and effect.  After this
amendment becomes effective, all references in the Agreement to “this
Agreement,” “hereof,” “herein” or words of similar effect, in each case
referring to the Agreement, shall be deemed to be references to the Agreement
as amended by this amendment.  This
amendment shall be governed by, and construed in accordance with, the internal
laws of the State of Indiana without reference to conflict of laws principles.

 

The Company is pleased to
continue having Tim Clayton serve as the Chief Financial Officer of the
Company.

Very truly yours,

/s/ David G. Gartzke

David G. Gartzke

Chairman of the Board and Chief Executive Officer

Agreed and Accepted this 20th day
of October 2006 by:

Emerging Capital

	
  By:

  	
  /s/ Timothy C. Clayton

  	
   

  
	
  Name:

  	
  Timothy C. Clayton

  	
   

  
	
  Title:

  	
  Principal

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]