Document:

Amendment No. 2 dated as of August 6, 2004 to Credit Agreement

 EXHIBIT 10.1 
  

  
 STONERIDGE, INC. 
 as a Borrower 
  
 THE FOREIGN SUBSIDIARY BORROWERS 
 party
thereto 
  
 THE LENDERS NAMED THEREIN 
 as Lenders 
  
 NATIONAL CITY BANK 
 as a Lender, a Joint Lead Arranger 
 the Administrative Agent and the Collateral Agent 
  
 DEUTSCHE BANK SECURITIES, INC. 
 as a Joint
Lead Arranger 
  
 COMERICA BANK and 
 PNC BANK, NATIONAL ASSOCIATION 
 as the
Co-Documentation Agents 
  

  
 AMENDMENT NO. 2 
 dated as of August 6, 2004

 to 
 the CREDIT AGREEMENT,

  
 dated as of 
  
 May 1, 2002 
  

  

 AMENDMENT NO. 2 TO CREDIT AGREEMENT 
  
 THIS AMENDMENT NO. 2 TO CREDIT AGREEMENT, is dated as of August 6, 2004 (this “Amendment”),
among the following: 
  
 (i) STONERIDGE, INC., an
Ohio corporation (herein, together with its successors and assigns, the “Company”); 
  
 (ii) the Foreign Subsidiary Borrowers party to the Credit Agreement, as hereinafter defined; 
  
 (iii) the Lenders party to the Credit Agreement; and

  
 (iv) NATIONAL CITY BANK, a national banking
association, as a Lender, the Collateral Agent and the Administrative Agent under the Credit Agreement (in such latter capacity, the “Administrative Agent”). 
  
 PRELIMINARY STATEMENTS: 
  
 (1) The Company, the Foreign Subsidiary Borrowers, the Lenders and the Administrative Agent are parties to the Credit Agreement, dated as of May 1, 2002
(as amended, restated or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used herein and not otherwise defined herein having the meanings provided in the Credit Agreement). 
  
 (2) The parties hereto desire to modify certain terms and provisions of the
Credit Agreement, all as more fully set forth below. 
  
 NOW,
THEREFORE, the parties hereby agree as follows: 
  
 Section 1 Amendments.

  
 1.1 Amendment to Section 1.1 - Certain Defined Terms.
Section 1.1 of the Credit Agreement is hereby amended by deleting the defined terms “Applicable Utilization Fee Rate” and “Utilization Fee”. 
  
 1.2 Amendment to Section 1.1 - Certain Defined Terms. Section 1.1 of
the Credit Agreement is hereby amended by amending and restating in their entirety the following definitions: 
  
 “Cash Equivalents” shall mean any of the following: 
  
 (i) securities issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof
(provided that the full faith and credit of the United States of America is pledged in support thereof) having maturities of not more than one year from the date of acquisition; 
  
 (ii) Dollar denominated time deposits, certificates of
deposit and bankers’ acceptances of (x) any Lender or (y) any bank whose short-term commercial paper rating from S&P is at least A-1 or the equivalent thereof or from Moody’s is at least P-1 or the equivalent thereof (any such bank, an
“Approved Bank”), in each case with maturities of not more than nine months from the date of acquisition; 
  
 (iii) commercial paper issued by any Lender or Approved Bank or by the parent company of any Lender or Approved Bank and commercial paper
issued by, or guaranteed by, any industrial or financial company with a short- term commercial paper rating of at least A-1 or the equivalent thereof by S&P or at least P-1 or the equivalent thereof by Moody’s, or guaranteed by any
industrial company with a 

 long term unsecured debt rating of at least A or A2, or the equivalent of each thereof, from S&P or
Moody’s, as the case may be, and in each case maturing within 270 days after the date of acquisition; 
  
 (iv) fully collateralized repurchase agreements entered into with any Lender or Approved Bank having a term of not more than 30 days and
covering securities described in clause (i) above; 
  
 (v) investments in money market funds substantially all the assets of which are comprised of securities of the types described in clauses (i) through (iv) above; 
  
 (vi) investments in money market funds access to which is provided as part of “sweep” accounts
maintained with a Lender or an Approved Bank; 
  
 (vii) investments in industrial development revenue bonds and taxable variable rate bonds, which, in each case (i) “re-set” interest rates not less frequently than quarterly, (ii) are entitled to the benefit of a remarketing
arrangement with an established broker dealer, and (iii) are supported by a direct pay letter of credit covering principal and accrued interest which is issued by an Approved Bank; and 
  
 (viii) investments in pooled funds or investment accounts consisting of investments of the nature described
in the foregoing clause (vii). 
  
 “Leverage Ratio” shall mean, for any Testing Period, on a Consolidated basis and in accordance with GAAP, the ratio of (a) Consolidated Total Debt less the excess of (i) all domestic cash and Cash Equivalents
calculated as of such date over (ii) $5,000,000 to (b) Consolidated EBITDA; provided, however, that, notwithstanding anything to the contrary contained herein, the Leverage Ratio for any such period shall be computed by giving effect to (i) the
inclusion of the appropriate financial items for any Person or business unit that shall have been acquired by the Company or its Subsidiaries for any portion of such period prior to the date of acquisition, and (ii) the exclusion of the appropriate
financial items for any Person or business unit that shall have been disposed of by the Company or its Subsidiaries, for the portion of such period prior to the date of disposition. 
  
 “Revolving Maturity Date” shall mean April 30, 2008, or such earlier date on which
the Total Revolving Commitment is terminated. 
  
 “Swing Line Maturity Date” shall mean April 30, 2008, or such earlier date on which the Swing Line Commitment is terminated. 
  
 1.3 Amendment to Pricing Grid Table. The Pricing Grid Table appearing at the end of Section 2.7(h)(ii)(E) of the Credit Agreement is hereby amended
and restated in its entirety to read as follows: 
  
 PRICING
GRID TABLE 
 (expressed in basis points) 
  

							
	 Leverage Ratio

	  	 Applicable
 Prime Rate
Margin

	  	 Applicable
Eurocurrency
 Margin

	  	 Applicable
 Commitment
Fee Rate

	 > 3.50 to 1.00
	  	125.00	  	275.00	  	50.00
	 > 3.00 to 1.00 and £ 3.50 to
1.00
	  	100.00	  	250.00	  	50.00
	 > 2.50 to 1.00 and £ 3.00 to
1.00
	  	75.00	  	225.00	  	50.00
	 > 2.00 to 1.00 and £ 2.50 to
1.00
	  	50.00	  	200.00	  	37.50
	 £ 2.00 to 1.00
	  	25.00	  	175.00	  	37.50

  
 The parties hereto acknowledge and
agree that from the Amendment Effective Date until changed in accordance with Section 2.7(h) of the Credit Agreement, the Applicable Prime Rate Margin shall be 50.00 basis points, the 

 Applicable Eurocurrency Margin shall be 200.00 basis points and the Applicable Commitment Fee Rate shall be 37.50 basis
points. 
  
 1.4 Amendment to Section 4.1 - Fees. Section
4.1(a) of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 
  
 (a) Commitment Fees. 
  
 (i) The Company agrees to pay to the Administrative Agent fees (“Commitment Fees”) for the account of each
Non-Defaulting Lender which has a Revolving Commitment for the period from and including the Effective Date to, but not including, the Revolving Maturity Date or, if earlier, the date upon which the Total Revolving Commitment has been terminated,
computed for each day at a rate per annum equal to the Applicable Commitment Fee Rate for such day on the amount of such Lender’s Revolving Facility Percentage of the Unutilized Total Revolving Commitment for such day. Commitment Fees shall be
due and payable in arrears on the last Business Day of each March, June, September and December and on the Revolving Maturity Date or, if earlier, the date upon which the Total Revolving Commitment has been terminated. 
  
 (ii) As used herein the term “Applicable
Commitment Fee Rate” shall mean the particular rate per annum determined by the Administrative Agent in accordance with the Pricing Grid Table which appears in section 2.7(h), based on the Company’s Leverage Ratio and such Pricing
Grid Table, and the following provisions: 
  
 (1) Initially, from May 1, 2002 until changed hereunder in accordance with the following provisions, the Applicable Commitment Fee Rate will be 50 basis points per annum. 
  
 (2) Commencing with the fiscal quarter of the Borrower ended on or nearest to September 30, 2002, and
continuing with each fiscal quarter thereafter, the Administrative Agent will determine the Applicable Commitment Fee Rate in accordance with the Pricing Grid Table, based on the Company’s Leverage Ratio for the Testing Period ended on the last
day of the fiscal quarter and identified in such Pricing Grid Table. Changes in the Applicable Commitment Fee Rate based upon changes in such ratio shall become effective on the first day of the month following the receipt by the Administrative
Agent pursuant to section 8.1(a) or (b) of the financial statements of the Company, accompanied by the certificate and calculations referred to in section 8.1(c), demonstrating the computation of such ratio, based upon the ratio in effect at the end
of the applicable period covered (in whole or in part) by such financial statements. 
  
 (3) Notwithstanding the above provisions, in no event shall there be any reduction during the period of six months following the Closing
Date in the Applicable Commitment Fee Rate. 
  
 (4) Notwithstanding the above provisions, during any period when (1) the Borrower has failed to timely deliver its consolidated financial statements referred to in section 8.1(a) or (b), accompanied by the certificate and calculations
referred to in section 8.1(c), (2) a Default under section 10.1(a) has occurred and is continuing, or (3) an Event of Default has occurred and is continuing, the Applicable Commitment Fee Rate shall be the highest rate per annum indicated therefor
in the Pricing Grid Table, regardless of the Company’s Leverage Ratio at such time, provided that in the case of clause (1) above, the Applicable Commitment Fee Rate shall be determined in accordance with the provisions of this
section 4.1(a) upon the delivery of such financial statements and certificates. 

 (5) Any changes in the Applicable Commitment Fee Rate shall be determined by the
Administrative Agent in accordance with the above provisions and the Administrative Agent will promptly provide notice of such determinations to the Company and the Lenders. Any such determination by the Administrative Agent pursuant to this section
4.1(a)(ii) shall be conclusive and binding absent manifest error. 
  
 1.5 Amendment to Section 8.10 - Hedge Agreements, etc. Paragraph (a) of Section 8.10 of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 
  
 (a) The Company and its Subsidiaries may enter into Hedge
Agreements in its reasonable business judgment (including fixed to floating rate interest rate swap agreements), but without exposing the Company or its Subsidiaries to predominantly speculative risks unrelated to the amount of assets, Indebtedness
or other liabilities intended to be subject to coverage on a notional basis under all such Hedge Agreements; provided that, in the case of any Hedge Agreement entered into after the Effective Date, (i) the Hedge Agreement is entered
into in the ordinary course of business; (ii) the institution providing such protection is a reputable financial institution, and (iii) the Borrower has given the Administrative Agent prior notice of the Hedge Agreement if the Hedge Agreement is
material. 
  
 1.6 Amendment to Section 9.8 - Interest Coverage
Ratio. Section 9.8 of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 
  
 9.8 Interest Coverage Ratio. The Company will not permit its Interest Coverage Ratio for any Testing Period to be less than the
ratio specified below: 
  

			
	 Testing Period

	  	Ratio

	 June 30, 2002
	  	1.65 to 1.00
	 September 30, 2002
	  	1.65 to 1.00
	 December 31, 2002
	  	1.75 to 1.00
	 March 31, 2003
	  	1.75 to 1.00
	 June 30, 2003
	  	2.00 to 1.00
	 September 30, 2003
	  	2.00 to 1.00
	 December 31, 2003
	  	2.25 to 1.00
	 March 31, 2004
	  	2.25 to 1.00
	 June 30, 2004
	  	2.50 to 1.00
	 September 30, 2004 through and including December 31, 2005
	  	2.75 to 1.00
	 Thereafter
	  	3.00 to 1.00

  
 1.7 Amendment to
Section 9.10 - Minimum Consolidated EBITDA. Section 9.10 of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 
  
 10.10 [Reserved.] 
  
 1.8 Amendment to Section 9.14 - Prepayments and Refinancing of Other Debt, etc. Section 9.14 of the Credit Agreement is hereby amended and restated
in its entirety to read as follows: 
  
 9.14 Prepayments and
Refinancings of Other Debt, etc. The Company will not, and will not permit any of its Subsidiaries to, make (or give any notice in respect thereof) any voluntary or optional prepayment or redemption or acquisition for value of (including,
without limitation, by way of depositing with the trustee with respect thereto money or securities before due for the purpose of paying when due) or exchange of, or refinance or refund, any Indebtedness of the Company or its Subsidiaries which has
an outstanding principal balance (or Capitalized Lease Obligation, in the case of a Capital Lease) greater than $3,000,000 

 (other than the Obligations and intercompany loans and advances among the Company and its Subsidiaries);
provided that (i) the Company or any Subsidiary may prepay any such Indebtedness which is Existing Indebtedness in connection with a refinancing thereof effected in accordance with section 9.4(c), (ii) any Foreign Subsidiary may prepay
any such Indebtedness owed by it to banks or other financial institutions in connection with a refinancing thereof effected with other banks or financial institutions in accordance with section 9.4(d) and (iii) the Company may repay, prepay, redeem
or acquire for value any of its Public Notes, provided that before and after giving effect thereto (x) the Company shall be in compliance with the financial covenants set forth in Sections 9.7, 9.8 and 9.9 of this Agreement, (y) no
Default or Event of Default shall have occurred and be continuing and (z) the Company shall have at least $50,000,000 of availability under the Revolving Facility. 
  
 Section 2 Representations and Warranties. 
  
 The Company represents and warrants as follows: 
  
 2.1 Authorization and Validity of Amendment. This Amendment has been duly authorized by all necessary corporate
action on the part of the Company, has been duly executed and delivered by a duly authorized officer of the Company, and constitutes the valid and binding agreement of the Company, enforceable against the Company in accordance with its terms.

  
 2.2 Representations and Warranties. The representations
and warranties of the Credit Parties contained in the Credit Agreement or in the other Credit Documents are true and correct in all material respects on and as of the Amendment Effective Date, as though made on and as of the Amendment Effective
Date, except to the extent that such representations and warranties expressly relate to an earlier specified date, in which case such representations and warranties are hereby reaffirmed as true and correct in all material respects as of the date
when made. 
  
 2.3 No Event of Default. Upon giving effect
to this Amendment, no Default or Event of Default exists or hereafter will begin to exist. 
  
 2.4 Compliance. Each Credit Party is in full compliance with all covenants and agreements contained in the Credit Agreement, as amended hereby, and the other Credit Documents to which it is a party. 

 
 2.5 No Claims. No Credit Party is aware of any claim or offset
against, or defense or counterclaim to, any of its obligations or liabilities under the Credit Agreement or any other Credit Document. 
  
 Section 3 Ratifications. 
  
 Except as expressly modified and superseded by this Amendment, the terms and provisions of the Credit Agreement are ratified and confirmed and shall
continue in full force and effect. 
  
 Section 4 Binding
Effect. 
  
 This Amendment shall become effective on the date
first set forth above (the “Amendment Effective Date”), subject to the satisfaction of the following conditions: 
  
 (a) the Company, each other Borrower (if any), the Administrative Agent and each of the Lenders shall have delivered an executed
counterpart of this Amendment to the Administrative Agent; 
  
 (b) the Company shall have caused each Subsidiary Guarantor to consent and agree to and acknowledge the terms of this Amendment; 
  
 (c) the Company shall have paid all reasonable legal fees and expenses of the Administrative Agent in
connection with this Amendment and the documents executed in connection therewith; and 

 (d) the Company shall have paid to the Administrative Agent for the benefit of itself and
the Lenders an amendment fee of 12.5 basis points on the Total Revolving Commitment. 
  
 (e) the Company shall have provided such other items and shall have satisfied such other conditions as may be reasonably required by the
Administrative Agent and the Lenders. 
  
 Section 5
Miscellaneous. 
  
 5.1 Survival of Representations and
Warranties. All representations and warranties made in this Amendment shall survive the execution and delivery of this Amendment, and no investigation by the Administrative Agent or any Lender or any subsequent Loan or other Credit Event shall
affect the representations and warranties or the right of the Administrative Agent or any Lender to rely upon them. 
  
 5.2 Reference to Credit Agreement. The Credit Agreement and any and all other agreements, instruments or documentation now or hereafter executed
and delivered pursuant to the terms of the Credit Agreement as amended hereby, are hereby amended so that any reference therein to the Credit Agreement shall mean a reference to the Credit Agreement as amended hereby. 
  
 5.3 Acknowledgement. The parties hereto agree and acknowledge that
there are no Term Loans outstanding as of the date hereof and that the Total Term Commitment has expired. 
  
 5.4 Severability. Any term or provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be confined to the term or provision so held to be invalid or unenforceable. 
  
 5.5 Applicable Law. This Amendment shall be governed by and construed in accordance with the internal substantive laws of the State of Ohio without
regard to conflicts of law provisions. 
  
 5.6 Headings.
The headings, captions and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment. 
  
 5.7 Entire Agreement. This Amendment is specifically limited to the matters expressly set forth herein. This Amendment and all other instruments,
agreements and documentation executed and delivered in connection with this Amendment embody the final, entire agreement among the parties hereto with respect to the subject matter hereof and supersede any and all prior commitments, agreements,
representations and understandings, whether written or oral, relating to the matters covered by this Amendment, and may not be contradicted or varied by evidence of prior, contemporaneous or subsequent oral agreements or discussions of the parties
hereto. There are no oral agreements among the parties hereto relating to the subject matter hereof or any other subject matter relating to the Credit Agreement. Except as set forth herein, the Credit Agreement shall remain in full force and effect
and be unaffected hereby. 
  
 5.8 Waiver of Claims. The
Company, by signing below, hereby waives and releases Administrative Agent and each of the Lenders and their respective directors, officers, employees, attorneys, affiliates and subsidiaries from any and all claims, offsets, defenses and
counterclaims of which the Company is aware, such waiver and release being with full knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with respect thereto. 
  
 5.9 Counterparts. This Amendment may be executed by the parties hereto
separately in one or more counterparts and by facsimile signature, each of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same agreement. 
  
 [Remainder of page intentionally left blank.] 

 5.10 JURY TRIAL WAIVER. EACH OF THE PARTIES TO THIS AMENDMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT
TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AMENDMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY HERETO HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
  
 IN WITNESS WHEREOF, this Amendment has been duly executed and delivered as of the date first above written. 
  

			
	 STONERIDGE, INC.

		
	 By:
	 	 /s/ Kevin P. Bagby

	 Name:
	 	 Kevin P. Bagby

	 Title:
	 	 Vice President and Chief Financial Officer

	
	 NATIONAL CITY BANK,
as a Lender and the Administrative Agent

		
	 By:
	 	 /s/ Patrick M. Pastore

	 Name:
	 	 Patrick M. Pastore

	 Title:
	 	 Senior Vice President

  
 [ADDITIONAL
SIGNATURE PAGES FOLLOW] 

 Signature Page to Amendment No. 2 
  

			
	 U.S. BANK, NATIONAL ASSOCIATION

		
	 By:
	 	 /s/ Christine C. Gencer

	 Name:
	 	 Christine C. Gencer

	 Title:
	 	 Vice President

  
 U.S. Bank, National
Association 
 Signature Page to Amendment No. 2 to 
 the Credit Agreement dated as of May 1, 2002, 
 by and among 
 Stoneridge, Inc., 
 the Foreign Subsidiary
Borrowers, 
 the Lenders party thereto, 
 and National City Bank, as the Administrative Agent 

 Signature Page to Amendment No. 2 
  

			
	 FIFTH THIRD BANK

		
	 By:
	 	 /s/ Thomas P. Murray

	 Name:
	 	 Thomas P. Murray

	 Title:
	 	 Vice President

  
 Fifth Third Bank

 Signature Page to Amendment No. 2 to 
 the Credit Agreement dated as of May 1, 2002, 
 by and among 
 Stoneridge, Inc., 
 the Foreign Subsidiary Borrowers, 
 the Lenders party thereto, 
 and National City
Bank, as the Administrative Agent 

 Signature Page to Amendment No. 2 
  

			
	 DEUTSCHE BANK TRUST COMPANY
 AMERICAS

		
	 By:
	 	 /s/ Mary Kay Coyle

	 Name:
	 	 Mary Kay Coyle

	 Title:
	 	 Managing Director

  
 Deutsche Bank Trust
Company Americas 
 Signature Page to Amendment No. 2 to 
 the Credit Agreement dated as of May 1, 2002, 
 by and among 
 Stoneridge, Inc., 
 the Foreign Subsidiary
Borrowers, 
 the Lenders party thereto, 
 and National City Bank, as the Administrative Agent 

 Signature Page to Amendment No. 2 
  

			
	 PNC BANK, NATIONAL ASSOCIATION

		
	 By:
	 	 /s/ Joseph G. Moran

	 Name:
	 	 Joseph G. Moran

	 Title:
	 	 Managing Director

  
 PNC Bank, N.A.

 Signature Page to Amendment No. 2 to 
 the Credit Agreement dated as of May 1, 2002, 
 by and among 
 Stoneridge, Inc., 
 the Foreign Subsidiary Borrowers, 
 the Lenders party thereto, 
 and National City
Bank, as the Administrative Agent 
 Signature Page to Amendment No. 2 

 Signature Page to Amendment No. 2 
  

			
	 GENERAL ELECTRIC CAPITAL CORPORATION

		
	 By:
	 	 /s/ George Neamonitis

	 Name:
	 	 George Neamonitis

	 Title:
	 	 Managing Director

  
 PNC Bank, N.A.

 Signature Page to Amendment No. 2 to 
 the Credit Agreement dated as of May 1, 2002, 
 by and among 
 Stoneridge, Inc., 
 the Foreign Subsidiary Borrowers, 
 the Lenders party thereto, 
 and National City
Bank, as the Administrative Agent 

 Signature Page to Amendment No. 2 
  

			
	 COMERICA BANK

		
	 By:
	 	 /s/ Chris Stergiadis

	 Name:
	 	 Chris Stergiadis

	 Title:
	 	 Assistant Vice President

  
 Comerica Bank

 Signature Page to Amendment No. 2 to 
 the Credit Agreement dated as of May 1, 2002, 
 by and among 
 Stoneridge, Inc., 
 the Foreign Subsidiary Borrowers, 
 the Lenders party thereto, 
 and National City
Bank, as the Administrative Agent 

 GUARANTOR ACKNOWLEDGMENT 
  
 Each of the undersigned consents and agrees to and acknowledges the terms of the foregoing Amendment No. 2 to the Credit
Agreement. Each of the undersigned specifically agrees to the waivers set forth in such agreement, including, but not limited to, the jury trial waiver. Each of the undersigned further agrees that the obligations of the each of the undersigned
pursuant to the Subsidiary Guaranty executed by each of the undersigned shall remain in full force and effect and be unaffected hereby. 
  
 Each of the undersigned hereby waives and releases the Administrative Agent and the Lenders and the respective directors, officers, employees, attorneys,
affiliates and subsidiaries of the Administrative Agent and the Lenders from any and all claims, offsets, defenses and counterclaims of which the undersigned is aware, such waiver and release being with full knowledge and understanding of the
circumstances and effect thereof and after having consulted legal counsel with respect thereto. 
  

							
	 STONERIDGE CONTROL DEVICES, INC.
	 	 STONERIDGE ELECTRONICS, INC.

				
	 By:
	 	 /s/ Kevin P. Bagby

	 	 By:
	 	 /s/ Kevin P. Bagby

	 Name:
	 	 Kevin P. Bagby
	 	 Name:
	 	 Kevin P. Bagby

	 Title:
	 	 Vice President and Chief Financial Officer
	 	 Title:
	 	 Vice President and Chief Financial OfficerReceivables Purchase Agreement

 Exhibit 10.1 
  
 EXECUTION COPY 
  
 AMENDMENT NO. 3 
  
 Dated as of October 24, 2002 
  
 To 
  
 RECEIVABLES PURCHASE AGREEMENT 
  
 Dated as of December 21, 1999 
  
 THIS AMENDMENT NO. 3 (the “Amendment”) dated as of October 24, 2002 is entered into among: 
  

	 	(i)	AILIC RECEIVABLES CORPORATION, a Delaware corporation (“Seller”), 

  

	 	(ii)	AMERICAN INCOME LIFE INSURANCE COMPANY, an insurance company organized under the laws of Indiana (“AIL”), as the initial Servicer (the Servicer together with the
Seller, the “Seller Parties” and each a “Seller Party”), 

  

	 	(iii)	PREFERRED RECEIVABLES FUNDING CORPORATION, a Delaware corporation (“PREFCO”), 

  

	 	(iv)	certain financial institutions parties hereto as the “Financial Institutions” (and, together with PREFCO, the “Purchasers”), and

  

	 	(v)	BANK ONE, NA (with headquarters in Chicago, Illinois), as agent for the Purchasers (the “Agent”). 

  
 PRELIMINARY STATEMENTS 
  
 A. Reference is made to that certain Receivables Purchase Agreement dated as
of December 21, 1999 (as amended, restated, supplemented or otherwise modified since such date, the “Receivables Purchase Agreement”) among the Seller, AIL, PREFCO, certain financial institutions and the Agent. Unless defined elsewhere
herein, capitalized terms used in this Agreement shall have the meanings assigned to such terms in the Receivables Purchase Agreement. 
  
 B. The parties thereto have agreed to amend the Receivables Purchase Agreement on the terms and conditions set forth herein. 
  
 NOW THEREFORE, in consideration of the premises set forth above and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Seller Parties, PREFCO, the Financial Institutions and the Agent hereby agree as follows: 
  
 SECTION 1. Amendments to the Receivables Purchase Agreement. The
Receivables Purchase Agreement is, effective the date hereof and subject to the satisfaction of the conditions precedent set forth in Section 2 hereof, hereby amended to delete in its entirety the 

 definition of “Adjusted Liquidity Price” set forth in Exhibit I thereof and to substitute the
following new definition therefore: 
  
 “Adjusted
Liquidity Price” means, in determining the PREFCO Transfer Price for any Purchaser Interest, an amount equal to 
  
 RI x [(i) DC + (ii) NDR] 
  

					
	 where:
	 	 	  	 
			
	 RI
	 	=	  	the undivided percentage interest evidence by such Purchaser Interest.
			
	 DC
	 	=	  	the Deemed Collections.
			
	 NDR
	 	=	  	the Outstanding Balance of all Receivables other than Charged-Off Receivables.

  
 Each of the foregoing
shall be determined from the most recent Monthly Report received from the Servicer. 
  
 SECTION 2. Conditions Precedent. This Amendment shall become effective and be deemed effective as of the date hereof upon receipt by the Agent of 
  

	 	(i)	counterparts of this Amendment executed by each of the Seller Parties, the Purchasers and the Agent; and 

  

	 	(ii)	a reaffirmation of guaranty executed by Torchmark, substantially in the form of Exhibit A hereto; 

  
 SECTION 3. Covenants, Representations and Warranties of the Seller Parties. 
  
 3.1 Upon effectiveness of this Amendment, each of the Seller Parties hereby
reaffirms all covenants, representations and warranties made by it in the Receivables Purchase Agreement and agrees that all such covenants, representations and warranties shall be deemed to have been remade as of the effective date of this
Amendment. 
  
 3.2 Each of the Seller Parties hereby represents
and warrants to the Purchasers and the Agent that: (a) this Amendment has been duly authorized by proper corporate proceedings of each Seller Party and constitutes the legal, valid and binding obligation of such Person, enforceable against it in
accordance with its terms, and (Bank) after giving effect to the amendment contained herein, no Amortization Event or Potential Amortization Event exists or will result from the execution of this Amendment. 
  
 SECTION 4. Reference to and Effect on the Receivables Purchase
Agreement. 
  
 4.1 Upon the effectiveness of this Amendment,
each reference in the Receivables Purchase Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import shall mean and be a reference to the Receivables Purchase Agreement, as amended
hereby, and each reference to the Receivables Purchase Agreement in any and all other documents, instruments, agreements, notes, certificates and other writings of every kind and nature shall mean and be a reference to the Receivables Purchase
Agreement as amended hereby. 

 4.2 Except as specifically amended above, the Receivables Purchase Agreement and all other documents,
instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect and are hereby ratified and confirmed. 
  
 4.3 The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of any Purchaser or the Agent
under the Receivables Purchase Agreement or any other document, instrument or agreement executed in connection therewith, nor constitute a waiver of any provision contained therein, except as specifically set forth herein. 
  
 4.4 Each party hereto agrees and acknowledges that this Amendment constitutes
a “Transaction Document” under and as defined in the Receivables Purchase Agreement. 
  
 SECTION 5. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF ILLINOIS. 
  
 SECTION 6. Execution in Counterparts. This Amendment may be executed
in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument.
Delivery of an executed counterpart of this Amendment by facsimile shall be deemed as effective as delivery of an originally executed counterpart. Any party delivering an executed counterpart of this Amendment by facsimile will also deliver an
original executed counterpart, but the failure of any party to so deliver an original executed counterpart of this Amendment will not affect the validity or effectiveness of this Amendment. 
  
 SECTION 7. Successors and Assigns. This Amendment shall be binding
upon each of the Seller Parties, the Purchasers and the Agent and their respective successors and assigns, and shall inure to the benefit of each of the Seller Parties, Purchasers and the Agent. 
  
 SECTION 8. Headings. Section headings in this Amendment are included
herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

 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. 
  

			
	AILIC RECEIVABLES CORPORATION
		
	By:	 	 /s/ Danny H. Almond

	Name:	 	Danny H. Almond
	Title:	 	Vice President and
	 	 	Corporate Controller
		
	Address:	 	3700 South Stonebridge Dr.
	 	 	McKinney, Texas 75070
	 	 	Fax: 972-569-3282
		
	Attention:	 	Danny H. Almond
	
	 AMERICAN INCOME LIFE
 INSURANCE
COMPANY

		
	By:	 	 /s/ Tony G. Brill

	Name:	 	Tony G. Brill
	Title:	 	 Executive Vice President and
 Chief Administrative
Officer

		
	Address:	 	1200 Wooded Acres
	 	 	Waco, Texas 76710
	 	 	Fax: 205-325-4157
		
	Attention:	 	Michael J. Klyce
	 	 	Vice President & Treasurer

			
	PREFERRED RECEIVABLES FUNDING CORPORATION
		
	By:	 	 /s/ Edwin J. Reisinger

	Name:	 	Edwin J. Reisinger
	Title:	 	Authorized Signatory
		
	Address:	 	c/o Bank One, NA, as Agent
	 	 	Asset Backed Finance
	 	 	Suite IL1-0079, 1-19
	 	 	1 Bank One Plaza
	 	 	Chicago, Illinois 60670-0019
	 	 	Fax: 312-732-1844
	
	 BANK ONE, NA,
 as a Financial Institution and
as Agent

		
	By:	 	 /s/ Edwin J. Reisinger

	Name:	 	Edwin J. Reisinger
	Title:	 	Director, Capital Markets
		
	Address:	 	Bank One, NA
	 	 	Asset Backed Finance
	 	 	Suite IL1-0079, 1-19
	 	 	1 Bank One Plaza
	 	 	Chicago, Illinois 60670-0019
	 	 	Fax: 312-732-4487

 Exhibit A 
  
 to 
  
 Amendment No. 3 
  
 Dated as of October 24, 2002 
  
 FORM OF REAFFIRMATION OF
PERFORMANCE GUARANTY 
  
 The undersigned, TORCHMARK CORPORATION
(“Torchmark”), hereby: 
  
 (a) acknowledges, and
consents to, the execution of that certain Amendment No. 3 dated as of October 24, 2002 to the Receivables Purchase Agreement dated as of December 21, 1999 (as amended, restated, supplemented or otherwise modified from time to time, the
“Receivables Purchase Agreement”) among AILIC RECEIVABLES CORPORATION (“Seller”), AMERICAN INCOME LIFE INSURANCE COMPANY (“AIL”), as the initial Servicer, PREFERRED RECEIVABLES FUNDING CORPORATION (“PREFCO”),
the financial institutions party thereto as “Financial Institutions” and BANK ONE, NA (with headquarters in Chicago, Illinois), as “Agent”; 
  

(b) reaffirms all of its obligations under that certain Performance Guaranty (the “Performance Guaranty”) dated as of December 21, 1999 and
amended and restated as of March 31, 2000 made by Torchmark in favor of the Agent; and 
  
 (c) acknowledges and agrees that such Performance Guaranty remains in full force and effect (including, without limitation, with respect to the “Guaranteed Obligations” and “Obligations” (each as
defined in the Performance Guaranty) after giving effect to the Amendment Documents), and such Performance Guaranty is hereby ratified and confirmed. 
  
 Dated: October 24, 2002 
  

			
	TORCHMARK CORPORATION
		
	By:	 	 /s/ Larry M. Hutchison

	Name:	 	Larry M. Hutchison
	Title:	 	Executive Vice President and General Counsel

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