Document:

Exhibit
      10.1

    

    AMENDMENT
      NO. 2

    TO
      CREDIT AGREEMENT

    

    This
      AMENDMENT
      NO. 2 TO CREDIT AGREEMENT (this
      “Amendment”),
      dated
      as of September 10, 2007, among ROLLER
      BEARING COMPANY OF AMERICA, INC.,
      a
      Delaware corporation (the “Borrower”),
      RBC
      BEARINGS INCORPORATED,
      a
      Delaware corporation (“Holdings”)
      various financial institutions and KEYBANK
      NATIONAL ASSOCIATION,
      as
      Administrative Agent (as defined below).

    

    WITNESSETH:

    

    WHEREAS,
      pursuant to the Credit Agreement, dated as of June 26, 2006 (as heretofore
      amended, supplemented or otherwise modified, the “Credit
      Agreement”),
      among
      the Borrower, Holdings, various financial institutions party thereto from time
      to time (the “Lenders”)
      and
      KeyBank National Association, as administrative agent (the “Administrative
      Agent”),
      the
      Borrower has been extended certain loans and other financial accommodations;
      

    

    WHEREAS,
      the
      parties hereto desire to amend the Credit Agreement as set forth
      herein;

    

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

    

    
      	Section
              1.	
              DEFINED
                TERMS.

            

    

    

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

    

    
      	Section
              2.	
              AMENDMENTS
                TO THE CREDIT AGREEMENT.
                

            

    

    

    The
      Credit Agreement is hereby amended as follows:

    

    2.1 Amendment
      to Section 1.1 (Definition of Applicable Commitment Fee
      Rate).
      Clause
      (ii) of the defined term “Applicable Commitment Fee Rate” in Section 1.1 shall
      be replaced in its entirety with the following:

    

    (ii) Commencing
      with the fiscal quarter of Holdings ending June 30, 2006, and continuing with
      each fiscal quarter thereafter until the fiscal quarter of Holdings ending
      June
      30, 2007, the Administrative Agent shall determine the Applicable Commitment
      Fee
      Rate in accordance with the following matrix, based on the Total Leverage
      Ratio:

     

    
      	
              Total
                Leverage Ratio

            	
              Applicable
                Commitment Fee Rate

            
	
              Less
                than 0.75 to 1.00

            	
              10.00
                bps

            
	
              Greater
                than or equal to 0.75 to 1.00, but less than 1.25 to 1.00

            	
              15.00
                bps

            
	
              Greater
                than or equal to 1.25 to 1.00, but less 1.75 to 1.00

            	
              20.00
                bps

            
	
              Greater
                than or equal to 1.75 to 1.00, but less than 2.75 to 1.00

            	
              25.00
                bps

            
	
              Greater
                than or equal to 2.75 to 1.00

            	
              27.50
                bps

            

    

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

       

    

    Commencing
      with the fiscal quarter of Holdings ending June 30, 2007, and continuing with
      each fiscal quarter thereafter, the Administrative Agent shall determine the
      Applicable Commitment Fee Rate in accordance with the following matrix, based
      on
      the Total Leverage Ratio:

     

    
      	
              Total
                Leverage Ratio

            	
              Applicable
                Commitment Fee Rate

            
	
              Less
                than 0.50 to 1.00

            	
              7.50
                bps

            
	
              Greater
                than or equal to 0.50 to 1.00, but less than 1.75 to 1.00

            	
              12.50
                bps

            
	
              Greater
                than or equal to 1.75 to 1.00, but less 2.75 to 1.00

            	
              15.00
                bps

            
	
              Greater
                than or equal to 2.75 to 1.00

            	
              20.00
                bps

            

    

    

    2.2 Amendment
      to Section 1.1 (Definition of Applicable Margin).
      Clause
      (ii) of the defined term “Applicable Margin” in Section 1.1 shall be replaced in
      its entirety with the following:

    

    (ii) Commencing
      with the fiscal quarter of Holdings ending June 30, 2006, and continuing with
      each fiscal quarter thereafter until the fiscal quarter of Holdings ending
      June
      30, 2007, the Administrative Agent shall determine the Applicable Margin in
      accordance with the following matrix, based on the Total Leverage
      Ratio:

     

    
      	
              Total
                Leverage Ratio

            	
              Revolving
                Loans that are Base Rate Loans

            	
              Revolving
                Loans that are Fixed Rate Loans

            
	
              Less
                than 0.75 to 1.00

            	
              0.00
                bps

            	
              62.50
                bps

            
	
              Greater
                than or equal to 0.75 to 1.00, but less than 1.25 to 1.00

            	
              0.00
                bps

            	
              75.00
                bps

            
	
              Greater
                than or equal to 1.25 to 1.00, but less 1.75 to 1.00

            	
              0.00
                bps

            	
              100.00
                bps

            
	
              Greater
                than or equal to 1.75 to 1.00, but less than 2.75 to 1.00

            	
              37.50
                bps

            	
              132.50
                bps

            
	
              Greater
                than or equal to 2.75 to 1.00

            	
              75.00
                bps

            	
              165.00
                bps

            

    

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    Commencing
      with the fiscal quarter of Holdings ending June 30, 2007, and continuing with
      each fiscal quarter thereafter, the Administrative Agent shall determine the
      Applicable Margin in accordance with the following matrix, based on the Total
      Leverage Ratio:

     

    
      	
              Total
                Leverage Ratio

            	
              Revolving
                Loans that are Base Rate Loans

            	
              Revolving
                Loans that are Fixed Rate Loans

            
	
              Less
                than 0.50 to 1.00

            	
              0.00
                bps

            	
              37.50
                bps

            
	
              Greater
                than or equal to 0.50 to 1.00, but less than 1.75 to 1.00

            	
              0.00
                bps

            	
              62.50
                bps

            
	
              Greater
                than or equal to 1.75 to 1.00, but less 2.75 to 1.00

            	
              0.00
                bps

            	
              87.50
                bps

            
	
              Greater
                than or equal to 2.75 to 1.00

            	
              25.00
                bps

            	
              115.00
                bps

            

    

    

    2.3 Amendment
      to Section 7.6 (Consolidated Capital Expenditures).
      Section
      7.6 is hereby deleted in its entirety and replaced with the
      following:

    

    7.6 Consolidated
      Capital Expenditures.
      

    

    Neither
      Holdings nor the Borrower will permit the Consolidated Capital Expenditures
      of
      Holdings in any fiscal year to exceed, $30,000,000, excluding (a) any
      Consolidated Capital Expenditures made with Cash Proceeds and (b) Consolidated
      Capital Expenditures attributable to Permitted Acquisitions; provided, that
      to
      the extent that the aggregate Consolidated Capital Expenditures of the Holdings
      and its Subsidiaries during any fiscal year are less than the amounts set forth
      above, any unused portion may be carried-forward into the subsequent fiscal
      year
      (but only that subsequent year).

    

    2.4 Amendment
      to Exhibit D (Form of Compliance Certificate).
      Exhibit
      D is hereby deleted in its entirety and replaced with the Exhibit
      D
      attached
      hereto.

    

    
      	Section
              3.	
              REPRESENTATIONS
                AND WARRANTIES.

            

    

    

    Each
      of
      the Borrower and Holdings hereby represents and warrants to the Lenders and
      the
      Administrative Agent as follows: 

     

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

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

    

    3.2
       No
      Default or Event of Default. Both
      before and after given effect to this Amendment, no Default or Event of Default
      is existing or will be existing.

    

    3.3
       Representations
      and Warranties. Both
      before and after giving effect to this Amendment, the representations and
      warranties contained in the Credit Agreement and the other Loan Documents are
      true and will be true and correct in
      all
      material respects with the same effect as though such representations and
      warranties had been made on and as of the date hereof (except to the extent
      such
      representations and warranties expressly refer to an earlier date, in which
      case
      they are true and will be true and correct as of such earlier date, and except
      to the extent such representations and warranties are qualified by materiality,
      contain dollar thresholds or have “Material Adverse Effect” qualifiers, in which
      case, such representations and warranties are true and will be true and correct
      in all respects).

    

    
      	Section
              4	
              CONDITIONS
                TO EFFECTIVENESS.

            

    

    

    This
      Amendment shall become effective as of the date and time at which each of the
      following conditions precedent shall have been fulfilled:

    4.1 This
      Amendment.
      The
      Administrative Agent shall have received from the Borrower, Holdings and the
      Required Lenders a counterpart of this Amendment, executed and delivered by
      a
      duly authorized officer of each such Person.

    

    4.2
       Guarantor
      Acknowledgment.
      The
      Administrative Agent shall have received from each Subsidiary Guarantor and
      from
      Holdings, a counterpart of the Guarantor Acknowledgment, in the form attached
      hereto as Exhibit
      A,
      executed and delivered by a duly authorized officer of each such
      Person.

    

    
      	Section
              5	
              MISCELLANEOUS.

            

    

    

    5.1 Governing
      Law.
      This
      Amendment shall be governed by and construed in accordance with the laws of
      the
      State of New York without giving effect to the conflict of laws rules thereof
      (other than Section 5-1401 of the New York General Obligations
      Law).

    

    5.2 Severability.
      In the
      event any provision of this Amendment should be invalid, the validity of the
      other provisions hereof and of the Credit Agreement shall not be affected
      thereby. 

    

    5.3 Counterparts.
      This
      Amendment may be executed in one or more counterparts, each of which, when
      taken
      together, shall constitute but one and the same agreement.

    

    5.4 Nonwaiver.
      The
      execution, delivery, performance and effectiveness of this Amendment shall
      not
      operate nor be deemed to be nor construed as a waiver (i) of any right, power
      or
      remedy of the Lenders or the Administrative Agent under the Credit Agreement
      or
      any other Loan Document, or (ii) of any term, provision, representation,
      warranty or covenant contained in the Credit Agreement or any other
      documentation executed in connection therewith. Further, none of the provisions
      of this Amendment shall constitute, be deemed to be or construed as, a waiver
      or
      consent to any Default or Event of Default under the Credit Agreement, as
      amended by this Amendment.

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

       

    

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

    

    [Signatures
      Follow on Next Page]

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

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

     

    
      	 	
              BORROWER:

              

              ROLLER
                BEARING COMPANY OF AMERICA, INC.

              

              

              By:                                                                                       

              Name:                                                                  
                

              Title:                                                                    
                

              

              

              

              HOLDINGS:

              

              RBC
                BEARINGS INCORPORATED

              

              
                By:                                                                                       

                Name:                                                                  
                  

                Title:                                                                      

              

            

    

    

    
      
         

      

      
        S-1

        
          

        

      

      
         

      

    

    
 

    
      	 	
              ADMINISTRATIVE
                AGENT, LC ISSUER AND LENDER:

              

              KEYBANK
                NATIONAL ASSOCIATION

               

               

              
                
                  By:                                                                                       

                  Name:                                                                  
                    

                  Title:                                                                      

                

              

              LENDERS:

              

              JPMORGAN
                CHASE BANK, N.A.

               

               

              
                
                  By:                                                                                       

                  Name:                                                                  
                    

                  Title:                                                                      

                

              

              BANK
                OF AMERICA, N.A.

               

               

              
                
                  By:                                                                                       

                  Name:                                                                  
                    

                  Title:                                                                      

                

               

              LASALLE
                BANK NATIONAL ASSOCIATION

               

               

              
                
                  By:                                                                                       

                  Name:                                                                  
                    

                  Title:                                                                      

                

              

              GENERAL
                ELECTRIC CAPITAL CORPORATION

               

               

              
                
                  By:                                                                                       

                  Name:                                                                  
                    

                  Title:                                                                      

                

              

              COMERICA
                BANK

               

               

              
                
                  By:                                                                                       

                  Name:                                                                  
                    

                  Title:                                                                      

                

              

            

    

    

    
      
         

      

      
        S-2

        
          

        

      

      
         

      

    

    

    EXHIBIT
      A

    

    GUARANTOR
      ACKNOWLEDGEMENT

    

    Each
      of
      the undersigned hereby acknowledges and agrees to the terms of Amendment No.
      2
      to Credit Agreement, dated as of July _____, 2007 (the “Amendment”),
      among
ROLLER
      BEARING COMPANY OF AMERICA, INC.,
      a
      Delaware corporation, RBC
      BEARINGS INCORPORATED,
      a
      Delaware corporation, various financial institutions and KEYBANK
      NATIONAL ASSOCIATION,
      as
      Administrative Agent. Each of the undersigned hereby confirms that, upon the
      effectiveness of the Amendment, each Security Document, the Parent Guaranty
      (if
      applicable), the Subsidiary Guaranty (if applicable) and each other Loan
      Document to which such undersigned is a party, shall remain in full force and
      effect and be the valid and binding obligation of the undersigned, enforceable
      against the undersigned in accordance with its terms, subject to any applicable
      bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
      the
      enforcement of creditor’s rights generally or by equitable principles including
      principles of commercial reasonableness, good faith and fair dealing (whether
      enforceability is sought by proceedings in equity or at law). The undersigned
      hereby further confirms that, upon the effectiveness of the Amendment, the
      Parent Guaranty or the Subsidiary Guaranty, as applicable, shall continue to
      guaranty the Guaranteed Obligations (as defined therein). 

    

    Capitalized
      terms used herein but not defined are used as defined in the Credit
      Agreement.

    

    Dated
      as
      of September _____, 2007

     

     

    
      	 	
              RBC
                BEARINGS INCORPORATED

              

              

              By:                                                                                  
                

              Name:                                                                             

              Title:                                                                               

              

              

              RBC
                OKLAHOMA, INC. 

              

              

              
                By:                                                                                  
                  

                Name:                                                                             

                Title:                                                                               

              

              
 

              RBC
                NICE BEARINGS, INC. 

              

              

              
                By:                                                                                  
                  

                Name:                                                                             

                Title:                                                                               

              

              

              RBC
                LINEAR PRECISION PRODUCTS, INC. 

              

              

              
                By:                                                                                  
                  

                Name:                                                                             

                Title:                                                                               

              

            

    

     

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

    
 

    
      	 	
              INDUSTRIAL
                TECTONICS BEARINGS 

              CORPORATION 

              

              

              
                By:                                                                                  
                  

                Name:                                                                             

                Title:                                                                               

              

               

               

              RBC
                PRECISION PRODUCTS - PLYMOUTH, 

              INC. 

              

              

              
                By:                                                                                  
                  

                Name:                                                                             

                Title:                                                                               

              

               

               

              RBC
                PRECISION PRODUCTS - BREMEN,  

              INC.
                 

              

              
                By:                                                                                  
                  

                Name:                                                                             

                Title:                                                                               

              

               

              

              TYSON
                BEARING COMPANY, INC. 

              

              

              
                By:                                                                                  
                  

                Name:                                                                             

                Title:                                                                               

              

              

              RBC
                AIRCRAFT PRODUCTS, INC. 

              

              

              
                By:                                                                                  
                  

                Name:                                                                             

                Title:                                                                               

              

              
 

              RBC
                SOUTHWEST PRODUCTS, INC. 

              

               

              
                By:                                                                                  
                  

                Name:                                                                             

                Title:                                                                               

              

            

    

     

    
      
         

      

      
        A-2

        
          

        

      

      
         

      

    

    

    EXHIBIT
      D

    

    FORM
      OF COMPLIANCE CERTIFICATE

    

    ________________,
      20____

    

    KEYBANK
      NATIONAL ASSOCIATION,

    as
      Administrative Agent

    127
      Public Square

    Cleveland,
      Ohio 44114

    Attention:
      Agent Services

    

    Each
      Lender party to the 

    Credit
      Agreement referred to below

    

    Ladies
      and Gentlemen:

    

    Reference
      is made to that certain Credit Agreement, dated as of June 26, 2006 (as the
      same
      may be amended, restated or otherwise modified from time to time, the
“Credit
      Agreement,”
the
      terms defined therein being used herein as therein defined), among ROLLER
      BEARING COMPANY OF AMERICA, INC., a Delaware corporation (the “Borrower”),
      RBC
      BEARINGS INCORPORATED, a
      Delaware corporation (“Holdings”),
      the
      financial institutions from time to time party thereto (the “Lenders”),
      and
      KEYBANK NATIONAL ASSOCIATION, as the administrative agent (the “Administrative
      Agent”).
      Pursuant to Section 6.1(d) of the Credit Agreement, the undersigned hereby
      certifies, solely on behalf of Holdings and not in its individual capacity,
      to
      the Administrative Agent and the Lenders as follows:

    

    (a) I
      am the
      duly elected Chief Financial Officer of Holdings.

    

    (b) I
      am
      familiar with the terms of the Credit Agreement and the other Loan Documents,
      and I have made, or have caused to be made under my supervision, a review in
      reasonable detail of the financial condition of Holdings and its Subsidiaries
      during the accounting period covered by the attached financial
      statements.

    

    
      	
            	(c)	o	
              After
                taking into account the review described in paragraph (b) above,
                I
                have
                no knowledge of the existence of any condition or event that constitutes
                or constituted a Default or Event of Default at the end of the accounting
                period covered by the attached financial statements or as of the
                date of
                this Compliance Certificate.

            

    

    

    
      	 	
              o

            	
              One
                or more Defaults or Events of Default exists. Attached to this Compliance
                Certificate is an addendum specifying each such Default or Event
                of
                Default, the nature and extent thereof, and the steps being taken
                (or
                proposed to be taken) by the Credit Parties with respect
                thereto.

            

    

    

    [CHECK
      APPROPRIATE BOX ABOVE]

    

    
      
         

      

      
        D-1

        
          

        

      

      
         

      

       

    

    (d) The
      representations and warranties of the Credit Parties contained in the Credit
      Agreement and in the other Loan Documents are true and correct in all material
      respects with the same effect as though such representations and warranties
      had
      been made on and at the date hereof, except to the extent that such
      representations and warranties expressly relate to an earlier specified date,
      in
      which case such representations and warranties were true and correct in all
      material respects as of the date when made.

    

    (e) Set
      forth
      on Attachment
      I
      hereto
      are calculations of the financial covenants set forth in Sections 7.6 and 7.8
      of
      the Credit Agreement, which calculations show compliance with the terms thereof
      for the fiscal quarter of Holdings ending ___________, 20______.

    

    

    
      	 	
              Very
                truly yours,

            
	 	 
	 	
              RBC
                BEARINGS INCORPORATED

               

               

              By:                                                                                       
                

              Name:                                                                  

              Title:
                Chief Financial Officer

            
	 	 

    

    

    
      
         

      

      
        D-2

        
          

        

      

      
         

      

    

    

    Attachment
      I

    

    I.
      CONSOLIDATED CAPITAL EXPENDITURES

    (Section
      7.6)

    

    Consolidated
      Capital Expenditures covenant is calculated as follows:

    

    
      	
              The
                aggregate of all expenditures (whether paid in cash or accrued as
                liabilities) during the previous fiscal year made by a Person and
                its
                Subsidiaries to acquire or lease (pursuant to a Capital Lease) fixed
                or
                capital assets, or additions to equipment (including replacements,
                capitalized repairs and improvements during such period):

            	
              $_____________

            
	 	 
	
              Less:

            	 
	
              Any
                such expenditure made to restore, replace or rebuild property to
                the
                condition of such property immediately prior to any Event of Loss
                to the
                extent such expenditure is made with, or subsequently reimbursed
                out of
                insurance proceeds, indemnity payments, condemnation awards (or payments
                in lieu of) or damage recovery proceeds relating to any Event of
                Loss:

            	
              $_____________

            
	
              Any
                such expenditure made pursuant to Section 7.2 (Consolidation, Merger,
                Acquisitions, Asset Sales, etc.) or Section 7.5 (Investments and
                Guaranty
                Obligations) of the Credit Agreement:

            	
              $_____________

            
	
              Any
                such expenditure made to the extent reimbursed by a third
                party:

            	
              $_____________

            
	
              Any
                such expenditure made with proceeds of Equity Issuances:

            	
              $_____________

            
	 	 
	
              Total
                Consolidated Capital Expenditures:

            	
              $_____________

            
	 	 
	
              Less:

            	 
	
              Consolidated
                Capital Expenditures made with Cash Proceeds:

            	
              $_____________

            
	
              Consolidated
                Capital Expenditures attributable to Permitted
                Acquisitions:

            	
              $_____________

            
	 	 
	
              Total
                [A]:

            	
              $_____________
                

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 	 
	
              COVENANT
                TEST: 

            	
              $30,000,000

            
	
               

            	 
	
              Plus:

            	 
	
              Carry-forward
                amount permitted under Section 7.6:

            	
              $_____________

            
	 	 
	
              Total
                permitted Consolidated Capital Expenditures [B]:

            	
              $_____________

            

    

    

    

    THE
      AMOUNT IN A MUST BE LESS THAN OR EQUAL TO THE AMOUNT IN B

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    II.
      TOTAL LEVERAGE RATIO

    (Section
      7.8(a))

    

    Total
      Leverage Ratio is defined as follows:

    

    
      	
              Consolidated

              Funded
                

              Indebtedness

            	 	 
	 	
              All
                Indebtedness for borrowed money evidenced by notes, bonds, debentures,
                or
                similar evidences of Indebtedness that by its terms matures more
                than one
                year from, or is directly or indirectly renewable or extendible at
                such
                Person’s option under a revolving credit or similar agreement obligating
                the lender or lenders to extend credit over a period of more than
                one year
                from the date of creation thereof, and specifically including Capitalized
                Lease Obligations, current maturities of long-term debt, revolving
                credit
                and short-term debt extendible beyond one year at the option of the
                debtor, and also including the Indebtedness under the Parent Subordinated
                Securities and the Obligations and Indebtedness consisting of Guaranty
                Obligations of the foregoing of other Persons:

            	
              $_____________

            
	 	
              Less:

            	 
	 	
              Unrestricted
                Cash:

            	
              $_____________

            
	 	
              But
                excluding:

            	 
	 	
              (a)
                the Indebtedness of any other Person prior to the date it became
                a
                Subsidiary of, or was merged into, Holdings or any Subsidiary of
                Holdings
                and (b) the Indebtedness of any other Person (other than a Subsidiary)
                in
                which Holdings has an ownership interest:

            	
              $_____________

            
	
              Total
                [A]:

            	 	
              $_____________

            
	
              Divided
                by

            	 	 
	
              Consolidated
                

              EBITDA*

            	 	 
	 	
              Consolidated
                Net Income:

            	
              $_____________

            
	 	
              Plus:

            	 
	 	
              The
                aggregate amounts deducted in determining such Consolidated Net Income
                in
                respect of:

            	 
	 	
              Consolidated
                Interest Expense:

            	
              $_____________

            
	 	
              Consolidated
                Income Tax Expense:

            	
              $_____________

            
	 	
              Consolidated
                Depreciation and Amortization Expense:

            	
              $_____________

            
	 	
              Restricted
                stock expense and stock option expense (but only to the extent deducted
                from the determination of Consolidated Net Income for such
                period):

            	
              $_____________

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    
      	 	
              Non-cash
                charges as permitted in accordance with FAS 142:

            	
              $_____________

            
	 	
              Consolidated
                EBITDA for any Person or business unit that has been acquired by
                the
                Borrower or any of its Subsidiaries for any portion of such Testing
                Period
                prior to the date of acquisition, so long as such Consolidated EBITDA
                is
                set forth in appropriate audited financial statements of such Person
                or
                other financial statements of such Person reasonably acceptable to
                the
                Administrative Agent:

            	
              $_____________

            
	 	
              Write-off
                of deferred financing costs:

            	
              $_____________

            
	 	
              Amortized
                debt discount:

            	
              $_____________

            
	 	
              Losses
                from extraordinary items from such period:

            	
              $_____________

            
	 	
              Any
                aggregate net loss during such period arising from the sale, exchange
                or
                other disposition or capital assets of such Person:

            	
              $_____________

            
	 	
              Any
                non-recurring losses or charges (with the consent of the Administrative
                Agent):

            	
              $_____________

            
	 	
              Any
                other non-cash losses or charges in respect of Hedge Agreements (including
                those resulting from the application of FAS 133):

            	
              $_____________

            
	 	
              Proceeds
                received from business interruption insurance:

            	
              $_____________

            
	 	
              Subtotal:

            	
              $_____________

            
	 	
              Less:

            	 
	 	
              Consolidated
                EBITDA from any Asset Sale permitted under Section 7.2 and made during
                such period, with such pro forma adjustments to be (a) made as if
                such
                Asset Sale occurred on the first day of such period, and (b) supported
                by
                such financial information as is reasonably satisfactory to the
                Administrative Agent and (c) made only if agreed to in writing by
                the
                Administrative Agent:

            	
              $_____________

            
	
              Total
                [B]:

            	 	
              $_____________

            
	 	 	 
	 	 	 
	
              Total
                Leverage Ratio

              [A
                divided by B]

            	 	
              ____________

            
	 	 	 
	
              COVENANT
                TEST:

            	
              For
                Testing Periods ending on the Closing Date through March 31,
                2007:

            	
              No
                greater than 3.50 to 1.00

            
	 	
              For
                Testing Periods ending from June 30, 2007 and thereafter:

            	
              No
                greater than 3.25 to 1.00

            

    

    

    *Consolidated
      EBITDA during each of the fiscal quarters ending October 1, 2005, December
      31,
      2005 and April 1, 2006 shall be deemed to be $12,767,000, $13,542,000 and
      $15,669,000, respectively.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    III.
      FIXED CHARGE COVERAGE RATIO

    (Section
      7.8(b))

    

    Fixed
      Charge Coverage Ratio is defined as follows:

    

    
      	
              Consolidated
                

              EBITDA

            	
              As
                calculated in Part II to this Attachment I:

            	
              $_____________

            
	 	 	 
	
              Less:

            	 	 
	 	 	 
	
              Consolidated

              Capital

              Expenditures
                

              (modified)

            	
              As
                calculated in Part I to this Attachment I, but excluding Capital
                Expenditures not financed by Revolving Loans and income taxes paid
                in
                cash:

            	
               

              $_____________

            
	 	 	 
	
              Total
                [A]:

            	 	
              $_____________

            
	
              Divided
                by:

            	 	 
	
              Consolidated
                Fixed 

              Charges

            	 	 
	 	
              The
                sum of:

            	 
	 	
              Consolidated
                Interest Expense (excluding, to the extent included therein, (a)
                original
                issue discount and (b) cash and non-cash interest paid by the issuance
                of
                payment-in-kind notes):

            	
              $_____________

            
	 	
              Scheduled
                principal payments of principal with respect to Indebtedness during
                such
                period:

            	
              $_____________

            
	 	
              Payments
                on earn-outs to sellers in connection with Permitted Acquisitions,
                unless
                such earn-outs are deducted in the calculation of Consolidated EBITDA
                during the relevant period:

            	
              $_____________

            
	 	
              The
                aggregate of all redemptions, purchases, retirements, defeasances,
                sinking
                fund or similar payments or acquisitions for value with respect to
                Indebtedness:

            	
              $_____________

            
	 	
              Capital
                Distributions paid in cash:

            	
              $_____________

            
	 	
              But
                Excluding:

            	 
	 	
              (a)
                the Consolidated Fixed Charges of any other Person prior to the date
                it
                became a Subsidiary of, or was merged into, Holdings or any Subsidiary
                of
                Holdings and (b) the Consolidated Fixed Charges of any other Person
                (other
                than a Subsidiary) in which Holdings has an ownership
                interest:

            	
              $_____________

            
	
              Total
                [B]:

            	 	
              $_____________

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    
      	
              Fixed
                Charge Coverage Ratio 

              [A
                divided by B]:

            	 	
              _______________

            
	
              COVENANT
                TEST:

            	 	
              Not
                less than 1.50 to 1.00

            

    

    

    All
      amounts in this Attachment I are without duplication. Defined terms used herein
      are used as defined in the Credit Agreement.EXHIBIT
      A

    FORM
      OF VOTING AGREEMENT

    

    

    September
      __, 2007

    

    First
      Niagara Financial Group, Inc.

    6950
      South Transit Road

    Lockport,
      NY 14095

    

    Ladies
      and Gentlemen:

    

    First
      Niagara Financial Group, Inc. (“FNFG”) and Great Lakes Bancorp, Inc. (“GLB”)
      have entered into an Agreement and Plan of Merger dated as of September 9,
      2007
      (the “Merger Agreement”), pursuant to which, subject to the terms and conditions
      set forth therein, (a) GLB will merge with and into FNFG, with FNFG surviving
      the merger, to be followed by the merger of Greater Buffalo Savings Bank
      (“GBSB”) with and into First Niagara Bank, with First Niagara Bank surviving the
      merger (collectively referred to as the “Merger”); and (b) shareholders of GLB
      will receive cash and/or common stock of FNFG as stated in the Merger
      Agreement.

    

    FNFG
      has
      requested, as a condition to its execution and delivery to GLB of the Merger
      Agreement, that the undersigned, being directors and executive officers of
      GLB
      and GBSB, execute and deliver to FNFG this Letter Agreement.

    

    Each
      of
      the undersigned, in order to induce FNFG to execute and deliver to GLB the
      Merger Agreement, and intending to be legally bound, hereby
      irrevocably:

    

    (a)    Agrees
      to
      be present (in person or by proxy) at all meetings of shareholders of GLB called
      to vote for approval of the Merger so that all shares of common stock of GLB
      over which the undersigned or a member of the undersigned’s immediate family now
      has sole or shared voting power (other than shares voted in a fiduciary capacity
      on behalf of a person who is not an immediate family member) will be counted
      for
      the purpose of determining the presence of a quorum at such meetings and to
      vote, or cause to be voted, all such shares (i) in favor of approval and
      adoption of the Merger Agreement and the transactions contemplated thereby
      (including any amendments or modifications of the terms thereof approved by
      the
      Board of Directors of GLB), and (ii) against approval or adoption of any other
      merger, business combination, recapitalization, partial liquidation or similar
      transaction involving GLB, it being understood that as to immediate family
      members, the undersigned will use his/her reasonable efforts to cause the shares
      to be present and voted in accordance with (i) and (ii) above;

    

    (b)    Agrees
      not to vote or execute any written consent to rescind or amend in any manner
      any
      prior vote or written consent, as a shareholder of GLB, to approve or adopt
      the
      Merger Agreement; 

    

    (c)    Agrees
      not to sell, transfer or otherwise dispose of any common stock of GLB on or
      prior to the date of the meeting of GLB shareholders to vote on the Merger
      Agreement, except for transfers to charities, charitable trusts, or other
      charitable organizations under Section 501(c)(3) of the IRC, lineal descendant
      or a spouse of the undersigned, or to a trust or other entity for the benefit
      of
      one or more of the foregoing persons, provided that the transferee agrees in
      writing to be bound by the terms of this letter agreement; and

     

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

    

    (d)    Represents
      that the undersigned has the capacity to enter into this Letter Agreement and
      that it is a valid and binding obligation enforceable against the undersigned
      in
      accordance with its terms, subject to bankruptcy, insolvency and other laws
      affecting creditors' rights and general equitable principles.

    

    The
      obligations set forth herein shall terminate concurrently with any termination
      of the Merger Agreement.

    

    ____________________________

    

    

    This
      Letter Agreement may be executed in two or more counterparts, each of which
      shall be deemed to constitute an original, but all of which together shall
      constitute one and the same Letter Agreement.

    

    ____________________________

    

    The
      undersigned intend to be legally bound hereby.

    

    

    
      	
              Sincerely,

            
	 
	 
	Name
	 
	Title

    

    

     

     

     

     

    
      
        
        

      

      
        B-2

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