Document:

Exhibit 10.3

	 	 
	
                         
 	
                        Syncora Holdings Ltd. 
 26 Reid Street, 4th Floor 
 Hamilton, Bermuda HM 11
 

As of August 11, 2008

PERSONAL & CONFIDENTIAL 

BY HAND DELIVERY

Paul S. Giordano 

c/o Syncora Holdings Ltd. 

1221 Avenue of the Americas 

New York, NY 10020

Dear Paul:

This letter agreement is intended to memorialize our mutual agreements and understandings with respect to your departure from Syncora Holdings Ltd (the “Company”). If you are in agreement with the terms and conditions set forth herein, please sign, date and return the two enclosed copies of this letter agreement to Orlando Rivera.

1. Your last day of employment with the Company and all of its affiliates will be August 15, 2008 (the ‘‘Termination Date”).

2. For purposes of determining your rights, entitlements and obligations under the Amended and Restated Employment Agreement, dated as of May 8, 2008, to which you, the Company, Syncora Holdings US Inc. and Syncora Guarantee Re Ltd are parties (the “Employment Agreement”), it is recognized that your termination of employment is involuntary and a termination without “Cause” (as defined in the Employment Agreement). Accordingly, you will be entitled to the following severance pay and termination benefits pursuant to Section 8(d)(ii) of the Employment Agreement:

(a) As soon as practical after the effective date of the Release (as defined in Section 11 below), but in any event within 60 days following the Termination Date, you will receive a cash lump sum severance payment equal to two times your base salary plus one times your 2008 target bonus.

(b) For a period of 24 months following the Termination Date (or, if earlier, until the date you become eligible to receive medical benefits from a new employer), you will be entitled to coverage under the Company’s medical benefit

 

 

plan on a fully insured basis, at the Company-subsidized premium rate in effect at such time.

(c) You will be entitled to your vested accrued benefits under the employee benefit programs of the Company, in accordance with the applicable terms and provisions of such programs and subject to the rules of Internal Revenue Code Section 409A.

3. You will also be entitled to the following additional payments and benefits under the Employment Agreement by reason of your termination without Cause:

(a) You will be entitled to payment of any earned but unpaid base salary as of the Termination Date, and, following the Termination Date, you will be entitled to reimbursement of any unreimbursed business expenses properly incurred in connection with the Company’s expense reimbursement policy and any accrued but unused vacation. Such amounts will be paid within 60 days of your Termination Date.

(b) As soon as practical after the effective date of the Release, but in any event within 60 days following the Termination Date, you will receive a cash payment of $55,000 (Section 19-Housing Benefit).

(c) Following the Termination Date, you will be reimbursed for the amount of the loss incurred on the sale of your principal residence to the extent provided under and in accordance with Section 20 of the Employment Agreement.

4. For avoidance of doubt, the parties acknowledge that the provisions of the Employment Agreement that are or may be applicable following the Termination Date shall survive your termination of employment and be deemed incorporated herein. These are Section 9 (Excise Tax Payments), Section 11 (Noncompetition), Section 12 (Confidentiality), Section 14 (Subsidiary Services and Guarantee), Section 17 (Indemnification), Section 18 (Settlement of Disputes) and Section 28 (Section 409A).

5. You agree that the foregoing payments and benefits constitute all of the payments and benefits to which you will be entitled under the Employment Agreement following your Termination Date and that you are not entitled to severance pay under any other plan or arrangement of the Company or any affiliate. Without limiting the preceding sentence, in the event that there occurs a Change in Control (as defined in Exhibit A of the Employment Agreement) following the Termination Date, you agree that you shall not be entitled to any enhanced payments or benefits pursuant to Section 8(d)(iii) of the Employment Agreement.

6. As soon as practical after the effective date of the Release, but in any event within 30 days following the Termination Date, you will receive a cash payment of

 

 

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$955,556, representing your entitlement under the converted LTIP award under the terms of the Company’s Offer to Exchange in November 2006.

7. As of the Termination Date, you will become 100% vested in the 113,629 restricted shares held by you on the Termination Date and the performance restrictions on the 76,419 performance shares held by you on the Termination Date will lapse. In satisfaction of these obligations, the Company will cause 190,048 shares to be issued to you in accordance with its customary practices (including regarding withholding of taxes with respect to this share issuance).

8. You will receive tax and financial advisory services for the remainder of 2008 and preparation of your 2008 taxes, as provided to similarly situated executive officers of the Company.

9. You will receive 12 months of outplacement services, in accordance with the Company’s outplacement policy for your level.

10. The restriction period under Section 11 of your Employment Agreement with regard to subparts (ii) and (iii) will be 90 days and not one year. In addition, for a period of one year following the Termination Date, you will not (either alone or jointly with or on behalf of others and whether directly or indirectly) whether as an employee, consultant, partner, principal, agent, distributor, representative or stockholder assist any person or group in the acquisition or proposed acquisition of all or any part of the Company or any of its affiliates, or any of its or their lines of business or assets, (including without limitation, all preparatory steps antecedent to an acquisition or proposed acquisition, such as preparation of valuations, financial models, management analysis or other evaluative materials).

11. The Company will, and will cause its affiliates to, enforce on behalf of you (or assign to you to enforce to the extent permitted) releases of you in any agreements that the Company or its affiliates entered or hereafter enter into with any third party to the extent you do not have the right to enforce such releases as a third party beneficiary thereof.

12. You agree that all of your vested and unvested options to purchase Company common stock will be cancelled on the Termination Date without payment of consideration therefor and without further obligation of the Company. You further waive any entitlement to consideration for a cash bonus in respect of the 2008 calendar year.

13. On the Termination Date, you agree to execute the General Release and Covenant Not to Sue attached hereto as Exhibit A (the “Release”). For avoidance of doubt, the parties acknowledge and agree that the Release does not waive or release (a) any rights under this letter agreement, (b) any right to claim benefits under employee

 

 

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benefit plans (including welfare benefit, qualified and nonqualified retirement and, except as set forth in this letter agreement, equity-related plans, (c) any right of indemnification as to advancement of legal fees (including without limitation indemnification, legal defense and related rights under the Company’s and any other Released Parties’ (as defined in the Release) certificate of incorporation, by-laws any other such organic documents, the Employment Agreement, any other plan or agreement or at law, or (d) any rights under directors and officers’ liability insurance policies.

14. For three years following the Termination Date, you agree not to, knowingly and intentionally, make any disparaging remark or send any disparaging communication which is reasonably expected to result in, or does result in, damage to the reputation of the Company or any of its affiliates or the reputation of the business, officers, directors or employees of the Company or any of its affiliates. For three years following the Termination Date, the Company agrees not to, knowingly and intentionally, make any disparaging remarks or send any disparaging communications by press release or other formal communication or take any other action, directly or indirectly, with respect to you which is reasonably expected to result in, or does result in, damage to your reputation (it being understood that comments or actions by an individual will not be treated as comments or actions by the
Company unless such individual is an officer or director of the Company or otherwise has both the authority to act on behalf of the Company and purports to act on behalf of the Company). The foregoing shall not be violated by truthful testimony by a party in any legal proceeding or governmental inquiry or truthful rebuttal by a party of statements made about the party.

15. You agree, at the Company’s request, to reasonably cooperate with, and provide truthful testimony in, any judicial or regulatory proceeding involving the Company and/or each of its affiliates, officers, directors or employees. To the extent the Company requests your cooperation or testimony, the Company shall promptly, after your submission of reasonable vouchers therefor or evidence of such amounts being owed, pay or reimburse you for all reasonable out-of-pocket expenses incurred by you in connection with such cooperation and testimony, including travel expenses and, if appropriate, legal counsel.

16. You will have the right to revoke the Release for 7 days following the date of your execution of it (the “Revocation Period”). Revocation may be made by notice during the Revocation Period to Orlando Rivera. In the event that you shall revoke the Release during the Revocation Period, the Company shall have no obligations under this letter agreement, with the parties in such event being acknowledged to have such rights and obligations as are applicable in the case of a termination without cause under Section 8(d)(ii) of the Employment Agreement (except that you and the Company acknowledge that execution, delivery and non-revocation of a general release is required for the severance payment set forth in Section 8(d)(ii)(B) thereof). Failing revocation, the Release will become final and
binding on the first day following the expiration of the

 

 

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Revocation Period. You agree that paragraph 10 and the second sentence of paragraph 5 of this letter agreement would survive revocation of the Release.

17. Any payment to be made to you hereunder shall be subject to withholding for all federal, state and local taxes required to be withheld therefrom.

18. This letter agreement represents the entire agreement between the parties as to the subject matters herein. This letter agreement may not be amended except by a writing signed by both parties.

19. This letter agreement shall be construed in accordance with the laws of the State of New York.

[signature page follows]

 

 

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                        Very truly yours,
 
	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        SYNCORA HOLDING LTD
 
	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        By: 
 	
                        /s/ Susan Comparato
 
	
                         
 	
                         
 	
                         
 	
                        
 
	
                         
 	
                         
 	
                        Name:
 	
                        Susan Comparato
 
	
                         
 	
                         
 	
                        Title:
 	
                        SVP & GC
 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        GUARANTORS:
 
	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        SYNCORA HOLDINGS US INC. 
 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        By: 
 	
                        /s/ Susan Comparato
 
	
                         
 	
                         
 	
                         
 	
                        
 
	
                         
 	
                         
 	
                        Name:
 	
                        SUSAN COMPARATO
 
	
                         
 	
                         
 	
                        Title:
 	
                        SECRETARY
 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        SYNCORA GUARANTEE RE LTD
 
	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        By: 
 	
                        /s/ Susan Comparato
 
	 
	 
	 
	

   
	
                         
 	
                         
 	
                        Name:
 	
                        SUSAN COMPARATO
 
	
                         
 	
                         
 	
                        Title:
 	
                        SECRETARY
 

 

	
                        Accepted and Agreed to:
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                        /s/ Paul S. Giordano
 	
                         
 	
                         
 	
                         
 
	
                        
 	
                         
 	
                         
 	
                         
 
	
                        Paul S. Giordano
 	
                         
 	
                         
 	
                         
 
	
                        Dated: August 11, 2008
 	
                         
 	
                         
 	
                         
 

 

 

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General Release and Covenant Not to Sue

1. General Release of Claims. In consideration for the payments and benefits paid to you under Section 8 of the Employment Agreement, between you and Syncora Holdings Ltd (the “Company”), dated May 8, 2008 (the “Employment Agreement”) and under your separation letter, signed by you and the Company, dated August [•], 2008 (the “Separation Agreement”), you hereby release and forever discharge the Company, and any and all of its affiliates, predecessors, successors, assigns, and their respective officers, directors, administrators and employees (the “Released
Parties”) of and from all actions, claims, liabilities, demands and causes of action, known or unknown, fixed or contingent, in law or equity, included but not limited to those arising under the Civil Rights Act of 1964, the Reconstruction Era Civil Rights Act, the Age Discrimination in Employment Act of 1967 (“ADEA”), the Employee Retirement Income Security Act of 1974, The Americans with Disabilities Act, The Family and Medical Leave Act of 1993, The New York State Human Rights Law Section 196 ET SEQ., the New York City Administrative Code, as amended, and any and all other federal, state, and local laws, rules and regulations prohibiting, without limitation, discrimination in employment, tortuous or wrongful discharge, breach of an express or implied contract, breach of a covenant of good faith and fair dealing, negligent or intentional infliction of emotional distress, defamation,
misrepresentation or fraud, which you ever had, now have or hereafter can, shall or may have for, upon or by reason of any matter, cause or thing, up to and including the day on which you sign this Separation Agreement (the “Claims”); provided, however, that you are not waiving (a) any rights under this Separation Agreement, (b) any right to claim benefits under employee benefit plans (including welfare benefit, qualified and nonqualified retirement and, except as set forth in the Separation Agreement, equity-related plans, (c) any right of indemnification or to advancement of legal fees (including without limitation indemnification, legal defense and related rights) under the Company’s and any other Released Parties’ (as defined in the Release) certificate of incorporation, by-laws any other
such organic documents, the Employment Agreement, any other plan or agreement or at law, or (d) any rights under directors and officers’ liability insurance policies.

2. Effect of General Release; Limitations on General Release. You understand that by signing this General Release you are prevented from filing, commencing or maintaining any action, complaint, or proceeding with regard to any of the claims released hereby. However, nothing in the General Release of Claims above precludes you from filing a charge with an administrative agency or from participating in an agency investigation. You are, however, waiving your right to recover money in connection with any such charge or investigation. You are also waiving your right to

 

 

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recover money in connection with a charge filed by any other individual or by the Equal Employment Opportunity Commission or any other federal or state agency.

3. Covenant Not to Sue. In addition to waiving and releasing the claims and rights covered by the General Release of Claims, you promise not to sue the Company or any other Released Party in any forum on any claim which is covered by (i.e., released under) the General Release of Claims. This covenant by you not to sue is different from the General Release of Claims, which will provide the Company a defense in the event you violate the General Release. If you violate this Covenant Not to Sue by suing a Released Party, you may be liable to that party for monetary damages. More specifically, if you sue a Released Party in violation of this Covenant Not to Sue, you will be required to either: (1) pay that Released Party’s attorneys’ fees and
other costs incurred as a result of having to defend against your suit; or (2) alternatively, at the Released Party’s option, return to the Company all of the severance pay provided to you under Section 8 of the Employment Agreement and under the Separation Agreement, except for one-hundred dollars ($100.00). In the event of such violation, the Company will also be excused from providing you any remaining severance payments under Section 8 of the Employment Agreement and under the Separation Agreement. However, nothing in this Covenant Not to Sue or in any other part of this Agreement prevents you from challenging the validity of this Agreement under the ADEA.

4. Knowing and Voluntary Decision to Sign. You further agree that no statements, representations, promises, threats or suggestions have been made by the Company or its representatives, officers, or employees to influence you to sign this General Release except such statements as are expressly set forth herein. You have signed this General Release upon reaching the considered conclusion that it is best for you, and of your own free will, relying entirely upon your own judgment, and the judgment of such lawyers and other personal advisors who you have chosen to consult. You further acknowledge that you are under no disability or impairment, which affects your decision to sign this General Release.

5. Time to Consider the Agreement. You have actually read this General Release, and have had adequate time of at least 21 days to consider its terms and effect, and to ask any questions that you may have of the legal or other personal advisors of your own choosing. You may revoke this General Release during the seven day period following its execution by providing written notice of such revocation to the Company.

6. Subsequent Facts. No fact, evidence, event or transaction currently unknown to you but which may hereafter become known to you shall affect in any way or manner the final and unconditional nature of this General Release.

[signature page follows]

 

 

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                        READ, ACCEPTED & AGREED
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                        /s/ Paul S. Giordano
 	
                         
 	
                         
 	
                         
 
	
                        
 	
                         
 	
                         
 	
                         
 
	
                        Paul S. Giordano
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                        9/3/08
 	
                         
 	
                         
 	
                         
 
	
                        Dated
 	
                         
 	
                         
 	
                         
 

 

 

9EX-10.1

Exhibit 10.1

ELEVENTH AMENDMENT TO CREDIT AGREEMENT

     ELEVENTH AMENDMENT, dated as of November 14, 2008 (this “Amendment”), to the Credit
and Guaranty Agreement, dated as of July 19, 2007, as amended by the First Amendment and Waiver to
Credit Agreement, dated as of November 9, 2007, the Second Amendment to Credit Agreement, dated as
of March 12, 2008, the Third Amendment to Credit Agreement, dated as of March 26, 2008, the Fourth
Amendment to Credit Agreement, dated as of July 18, 2008, the Fifth Amendment to Credit Agreement,
dated as of July 24, 2008, the Sixth Amendment to Credit Agreement, dated as of August 25, 2008,
the Seventh Amendment to Credit Agreement, dated as of September 30, 2008, the Eighth Amendment to
Credit Agreement, dated as of October 2, 2008, the Ninth Amendment to Credit Agreement, dated as of
October 29, 2008, the Tenth Amendment to Credit Agreement, dated as of November 6, 2008 and that
certain letter agreement dated February 26, 2008 (as further amended, restated or otherwise
modified from time to time, the “Credit Agreement”), by and among Proliance International
Inc., a Delaware corporation (“Holdings” and the “Borrower”), certain domestic
subsidiaries of the Borrower listed as a “Guarantor” on the signature pages thereto (together with
each other Person (as defined in the Credit Agreement) that guarantees all or any portion of the
Obligations (as defined in the Credit Agreement) from time to time, each a “Guarantor” and
collectively, the “Guarantors”), the lenders from time to time party thereto (each a
“Lender” and collectively, the “Lenders”), Silver Point Finance, LLC, a Delaware
limited liability company (“Silver Point”), as collateral agent for the Agents (as
hereinafter defined) and the Lenders (in such capacity, together with its successors and assigns in
such capacity, if any, the “Collateral Agent”), and as administrative agent for the Agents
and the Lenders (in such capacity, together with its successors and assigns in such capacity, if
any, the “Administrative Agent” and together with the Collateral Agent, each an
“Agent” and collectively, the “Agents”) and Silver Point as lead arranger (in such
capacity, together with its successors and assigns in such capacity, if any, the “Lead
Arranger”).

     WHEREAS, capitalized terms used in these recitals shall have the respective meanings set forth
in the Credit Agreement unless otherwise defined herein.

     WHEREAS, the Credit Parties have requested that the Agents and the Lenders amend certain
provisions of the Credit Agreement, subject to the terms and conditions set forth in this
Amendment.

     WHEREAS, the Agent and the Lenders are willing to agree to this requested Amendment, but only
upon the terms and subject to the conditions set forth herein.

     NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained herein,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Credit Parties, the Agents and the Lenders hereby agree as follows:

     1. Definitions. All capitalized terms used herein and not otherwise defined herein
are used herein as defined in the Credit Agreement.

 

 

     2. Defined Terms in the Credit Agreement. Section 1.1 of the Credit Agreement is
hereby amended, as follows:

          (a) New Definitions. Section 1.1 of the Credit Agreement is hereby amended by adding
the definitions of the following terms thereto, in alphabetical order, to read in their entirety as
follows:

          “‘Eleventh Amendment’ means the Eleventh Amendment to the Credit Agreement, dated as of
November 14, 2008, by and among the Credit Parties, the Requisite Lenders and the Agents.”

          “‘Eleventh Amendment Effective Date’ has the meaning ascribed to the term “Eleventh Amendment
Effective Date” in the Eleventh Amendment.”

     3. Section 2.23 — Southaven Insurance Proceeds Reserve. Section 2.23 of the Credit
Agreement is hereby amended by replacing the reference therein to “November 14, 2008” with
“November 21, 2008”.

     4. Conditions to Effectiveness. This Amendment shall become effective (the
“Eleventh Amendment Effective Date”) only upon satisfaction in full of the following
conditions precedent:

     (a) Collateral Agent shall have received counterparts of this Amendment that bear the
signatures of each Credit Party, each Agent and the Requisite Lenders.

     (b) Except as set forth in the Second Amendment, the Third Amendment, the Fourth Amendment,
the Fifth Amendment, the Sixth Amendment, the Seventh Amendment, the Eighth Amendment, the Ninth
Amendment and the Tenth Amendment, the representations and warranties contained herein, in Section
IV of the Credit Agreement and in each other Credit Document are true and correct in all material
respects on and as of the Eleventh Amendment Effective Date as though made on and as of such date,
except to the extent that any such representation or warranty expressly relates solely to an
earlier date (in which case such representation or warranty shall be true and correct in all
material respects on and as of such earlier date).

     (c) Borrower shall have paid to Administrative Agent all amounts due and owing to any Agent or
any Lender in connection with this Amendment and the Credit Documents.

     (d) No Default or Event of Default shall have occurred and be continuing on the Eleventh
Amendment Effective Date or would result from this Amendment becoming effective in accordance with
its terms.

     (e) All legal matters incident to this Amendment shall be reasonably satisfactory to the
Agents and their respective counsel.

     5. Representations and Warranties. Each Credit Party represents and warrants as
follows:

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     (a) Organization, Good Standing, Etc. Each Credit Party (i) is a corporation, limited
liability company or limited partnership, duly organized, validly existing and in good standing
under the laws of the state or jurisdiction of its organization, (ii) has all requisite power and
authority to execute and deliver this Amendment, consummate the transactions contemplated hereby
and perform the Credit Agreement, as amended and modified hereby and (iii) is duly qualified to do
business and is in good standing in each jurisdiction in which the character of the properties
owned or leased by it or in which the transaction of its business makes such qualification
necessary other than in such jurisdictions where the failure to be so qualified and in good
standing could not reasonably be expected to have a Material Adverse Effect.

     (b) Authorization, Etc. The execution, delivery and performance by each Credit Party
of this Amendment and the performance by each Credit Party of the Credit Agreement, as amended and
modified hereby (i) have been duly authorized by all necessary action, (ii) do not and will not
contravene its charter or by-laws, its limited liability company or operating agreement or its
certificate of partnership or partnership agreement, as applicable, or any applicable law, or any
contractual restriction binding on or otherwise affecting it or any of its properties, (iii) do not
and will not result in or require the creation of any Lien (other than pursuant to any Credit
Document) upon or with respect to any of its properties, and (iv) do not and will not result in any
default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any
material permit, license, authorization or approval applicable to its operations or any of its
properties.

     (c) Governmental Approvals. No authorization or approval or other action by, and no
notice to or filing with, any Governmental Authority is required in connection with the due
execution, delivery and performance by any Credit Party of this Amendment or the performance by any
Credit Party of the Credit Agreement, as amended and modified hereby.

     (d) Enforceability of Credit Documents. Each of this Amendment and the Credit
Agreement, as amended and modified hereby, is a legal, valid and binding obligation of the Credit
Parties which are party hereto or thereto, enforceable against such Credit Parties in accordance
with its terms, except as enforceability may be limited by equitable principles and by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’
rights generally.

     (e) Representations and Warranties; No Default. Except as set forth in the Second
Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, the
Seventh Amendment, the Eighth Amendment, the Ninth Amendment and the Tenth Amendment, the
representations and warranties contained herein, in Section IV of the Credit Agreement and in each
other Credit Document are true and correct in all material respects on and as of the Eleventh
Amendment Effective Date as though made on and as of such date, except to the extent that any such
representation or warranty expressly relates solely to an earlier date (in which case such
representation or warranty shall be true and correct in all material respects on and as of such
earlier date); and no Default or Event of Default shall have occurred and be continuing on the
Eleventh Amendment Effective Date or would result from this Amendment becoming effective in
accordance with its terms.

     6. Effect of Amendment; Continued Effectiveness of the Credit Agreement.

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     (a) Ratifications. Except as otherwise expressly provided herein, (i) the Credit
Agreement and the other Credit Documents are, and shall continue to be, in full force and effect
and are hereby ratified and confirmed in all respects, except that on and after the Eleventh
Amendment Effective Date (A) all references in the Credit Agreement to “this Agreement”, “hereto”,
“hereof”, “hereunder” or words of like import referring to the Credit Agreement shall mean the
Credit Agreement as amended and modified by this Amendment, and (B) all references in the other
Credit Documents to the “Credit Agreement”, “thereto”, “thereof”, “thereunder” or words of like
import referring to the Credit Agreement shall mean the Credit Agreement as amended and modified by
this Amendment, (ii) to the extent that the Credit Agreement or any other Credit Document purports
to pledge to the Collateral Agent, or to grant to the Collateral Agent a security interest in or
lien on, any collateral as security for the Obligations or the Guaranteed Obligations, such pledge
or grant of a security interest or lien is hereby ratified and confirmed in all respects, and (iii)
the execution, delivery and effectiveness of this Amendment shall not operate as an amendment of
any right, power or remedy of the Agents or the Lenders under the Credit Agreement or any other
Credit Document, nor constitute an amendment of any provision of the Credit Agreement or any other
Credit Document. This Amendment shall be effective only in the specific instances and for the
specific purposes set forth herein and does not allow for any other or further departure from the
terms and conditions of the Credit Agreement or any other Credit Document, which terms and
conditions shall remain in full force and effect.

     (b) No Waivers. Except as expressly set forth herein, this Amendment is not a waiver
of, or consent to, any Default or Event of Default now existing or hereafter arising under the
Credit Agreement or any other Credit Document and the Agents and the Lenders expressly reserve all
of their rights and remedies under the Credit Agreement and the other Credit Documents in respect
of all such Defaults or Events of Default not waived or consented to hereby, by the Second
Amendment, by the Third Amendment, by the Fourth Amendment, by the Fifth Amendment, by the Sixth
Amendment, the Seventh Amendment, the Eighth Amendment, the Ninth Amendment or the Tenth Amendment,
under applicable law or otherwise.

     (c) Amendment as Credit Document. Each Credit Party confirms and agrees that this
Amendment shall constitute a Credit Document under the Credit Agreement. Accordingly, it shall be
an Event of Default under the Credit Agreement if any representation or warranty made or deemed
made by any Credit Party under or in connection with this Amendment shall have been incorrect in
any material respect when made or deemed made or if any Credit Party fails to perform or comply
with any covenant or agreement contained herein.

     7. Release. Each Credit Party hereby acknowledges and agrees that: (a) neither it
nor any of its Affiliates has any claim or cause of action against any Agent, the Borrowing Base
Agent or any Lender (or any of their respective Affiliates, officers, directors, employees,
attorneys, consultants or agents) and (b) each Agent, the Borrowing Base Agent, and each Lender has
heretofore properly performed and satisfied in a timely manner all of its obligations to the Credit
Parties and their Affiliates under the Credit Agreement and the other Credit Documents.
Notwithstanding the foregoing, the Agents, the Borrowing Base Agent and the Lenders wish (and the
Credit Parties agree) to eliminate any possibility that any past conditions, acts, omissions,
events or circumstances would impair or otherwise adversely affect any of the Agents’, the
Borrowing Base Agent’s and the Lenders’ rights, interests, security and/or remedies under the
Credit Agreement and the other Credit Documents. Accordingly, for and in

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consideration of the agreements contained in this Amendment and other good and valuable
consideration, each Credit Party (for itself and its Affiliates and the successors, assigns, heirs
and representatives of each of the foregoing) (collectively, the “Releasors”) does hereby
fully, finally, unconditionally and irrevocably release and forever discharge each Agent, the
Borrowing Base Agent, each Lender and each of their respective Affiliates, officers, directors,
employees, attorneys, consultants and agents (collectively, the “Released Parties”) from
any and all debts, claims, obligations, damages, costs, attorneys’ fees, suits, demands,
liabilities, actions, proceedings and causes of action, in each case, whether known or unknown,
contingent or fixed, direct or indirect, and of whatever nature or description, and whether in law
or in equity, under contract, tort, statute or otherwise (collectively, “Claims”), which
any Releasor has heretofore had or now or hereafter can, shall or may have against any Released
Party by reason of any act, omission or thing whatsoever done or omitted to be done (collectively,
“Actions”) on or prior to the Eleventh Amendment Effective Date arising out of, connected
with or related in any way to this Amendment, the Credit Agreement or any other Credit Document, or
any act, event or transaction related or attendant thereto done or omitted to be done on or prior
to the Eleventh Amendment Effective Date, or the agreements of any Agent, the Borrowing Base Agent
or any Lender contained therein, or the possession, use, operation or control of any of the assets
of any Credit Party, or the making of any Loans or other advances, or the management of such Loans
or advances or the Collateral on or prior to the Eleventh Amendment Effective Date. For the
avoidance of doubt, nothing contained in this Amendment shall be deemed to release or discharge any
Released Party from any Claims arising out of, in connection with or related in any way to Actions
occurring after the date of this Amendment.

     8. Miscellaneous.

     (a) Counterparts. This Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which shall be deemed to be an original,
but all of which taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of this Amendment by telefacsimile or electronic mail shall be equally
effective as delivery of an original executed counterpart of this Amendment.

     (b) Headings. Section and paragraph headings herein are included for convenience of
reference only and shall not constitute a part of this Amendment for any other purpose.

     (c) Governing Law. This Amendment shall be governed by, and construed in accordance
with, the laws of the State of New York.

     (d) Expenses. The Borrower will pay on demand all reasonable fees, costs and expenses
of the Agents, the Borrowing Base Agent and the Lenders in connection with the preparation,
execution and delivery of this Amendment and all documents incidental hereto, including, without
limitation, the reasonable fees, disbursements and other charges of Schulte Roth & Zabel LLP,
counsel to Administrative Agent and Collateral Agent, and of McGuireWoods LLP, counsel to Borrowing
Base Agent. In addition, the Borrower will pay all costs and expenses, including attorneys’ fees
(including allocated costs of internal counsel) and costs of settlement, incurred by any Agent,
Borrowing Base Agent and Lenders in enforcing any

-5-

 

Obligations of or in collecting any payments due from any Credit Party hereunder or under the
other Credit Documents by reason of any Default or Event of Default (including in connection with
the sale of, collection from, or other realization upon any of the Collateral or the enforcement of
the Guaranty) or in connection with any refinancing or restructuring of the credit arrangements
provided hereunder in the nature of a “work out” or pursuant to any insolvency or bankruptcy cases
or proceedings (including, without limitation, the costs and expenses of any advisers retained by
Agents, the Borrowing Base Agent and Lenders; provided, that so long as no Event of Default
has occurred and is continuing the Borrower shall not be responsible for costs and expenses of CRS
in excess of $25,000).

[Remainder of this page intentionally left blank]

-6-

 

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

	 	 	 	 	 
	 	BORROWER:

PROLIANCE INTERNATIONAL, INC.

 	 
	 	By:  	/s/ R. A. Wisot
 	 
	 	 	Name:  	R. A. Wisot 	 
	 	 	Title:  	Vice President 	 
	 
	 	GUARANTORS:

AFTERMARKET LLC

 	 
	 	By:  	/s/ R. A. Wisot
 	 
	 	 	Name:  	R. A. Wisot 	 
	 	 	Title:  	Vice President 	 
	 
	 	AFTERMARKET DELAWARE CORPORATION

 	 
	 	By:  	/s/ R. A. Wisot
 	 
	 	 	Name:  	R. A. Wisot 	 
	 	 	Title:  	Vice President 	 
	 
	 	PROLIANCE INTERNATIONAL HOLDING CORPORATION

 	 
	 	By:  	/s/ R. A. Wisot
 	 
	 	 	Name:  	R. A. Wisot 	 
	 	 	Title:  	Secretary and Treasurer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	AGENTS AND LEAD ARRANGER:

SILVER POINT FINANCE, LLC, as

Administrative Agent, Lead Arranger and

Collateral Agent 

 	 
	 	By:  	/s/ Zachary M. Zeitlin
 	 
	 	 	Name:  	Zachary M. Zeitlin 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	LENDERS:

SPF CDO I, LTD., as a Lender

 	 
	 	By:  	/s/ Zachary M. Zeitlin
 	 
	 	 	Name:  	Zachary M. Zeitlin 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	FIELD POINT III, LTD. as a Lender

 	 
	 	By:  	/s/ Zachary M. Zeitlin
 	 
	 	 	Name:  	Zachary M. Zeitlin 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	FIELD POINT IV, LTD. as a Lender

 	 
	 	By:  	/s/ Zachary M. Zeitlin
 	 
	 	 	Name:  	Zachary M. Zeitlin 	 
	 	 	Title:  	Authorized Signatory 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BORROWING BASE AGENT AND LENDER:

WELLS FARGO FOOTHILL, LLC, as 

Borrowing Base Agent and a Lender

 	 
	 	By:  	/s/ Jonathan Boynton
 	 
	 	 	Name:  	Jonathan Boynton 	 
	 	 	Title:  	Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}]]