Document:

Change of Control Agreement

 Exhibit 10.1 
 CONFIDENTIAL 
 Change of Control Agreement 

December 6, 2010 
 (amended and restated as of March 21, 2012) 
 Robert L. Wagman 

5830 Green Pointe Drive S #A 
 Groveport, Ohio
43125-1087 
 Dear Mr. Wagman: 
 LKQ Corporation, a Delaware corporation (the “Company”), considers it essential to the best interests of its stockholders to take reasonable steps to retain key management personnel.
Further, the Board of Directors of the Company (the “Board”) recognizes that the uncertainty and questions that might arise among management in the context of any possible Change of Control (as defined below) of the Company could
result in the departure or distraction of management personnel to the detriment of the Company and its stockholders. 
 In order
to reinforce and encourage your continued attention and dedication to your assigned duties without distraction in the face of potentially disturbing circumstances arising from any possible Change of Control, the Company has determined to enter into
this letter agreement (the “Agreement”), which addresses the terms and conditions of your separation from the Company in connection with a Change of Control or within two (2) years following the Change of Control Date (the
“Change of Control Period”). Capitalized words that are not otherwise defined herein shall have the meanings assigned to those words in Section 11 hereof. 

1. Operation of Agreement. The provisions of this Agreement pertaining to the terms and conditions of your separation from the
Company in connection with a Change in Control (collectively, the “Severance Provisions”) shall apply only if a Change of Control occurs during the Effective Period. If a Change of Control occurs during the Effective Period, the
Severance Provisions become effective on the date of the Change of Control (the “Change of Control Date”). Notwithstanding the foregoing, if (a) a Change of Control occurs during the Effective Period; and (b) your
employment with the Company is terminated during the Effective Period, but within twelve (12) months prior to the date on which the Change of Control occurs; and (c) it is reasonably demonstrated by you that such termination of employment
(i) was at the request of a third party that has taken steps reasonably calculated to effect a Change of Control or (ii) otherwise arose in connection with or in anticipation of a Change of Control, then the “Change of Control
Date” shall mean the date immediately prior to the date of such termination of employment. This Agreement will remain in effect until the later of (x) the last day of the Effective Period; or (y) if a Change of Control occurs
during the Effective Period, the date on which all benefits due to you under this Agreement, if any, have been paid. 

 2. Termination of Employment by Reason of Death or Disability. Your employment shall
terminate automatically if you die during the Change of Control Period. If the Company determines in good faith that you incurred a Disability during the Change of Control Period, it may give you written notice, in accordance with Section 5
hereof, of its intention to terminate your employment. In such event, your employment with the Company shall terminate effective on the thirtieth (30) calendar day after your receipt of such notice if you have not returned to full-time duties
within thirty (30) calendar days after such receipt. If your employment is terminated for death or Disability during the Change of Control Period, this Agreement shall terminate without further obligations on the part of the Company other than
the obligation to pay to you or your representative, as applicable, the following amounts: 
 (a) the Accrued
Obligations, which shall be paid to you in a single sum cash payment no later than the later of (i) fifteen (15) calendar days following the Date of Termination or (ii) the effective date of the Waiver and Release: 

(b) the Pro Rata Bonus, which shall be paid to you in a single sum cash payment no later than the later of
(i) fifteen (15) calendar days following the Date of Termination or (ii) the effective date of the Waiver and Release; and 
 (c) the Other Benefits, which shall be paid in accordance with the terms and conditions of such plans, programs, policies, arrangements or agreements. 

3. Termination for Cause; Resignation Other Than for Good Reason. If your employment is terminated for Cause or you resign for
other than Good Reason during the Change of Control Period, your employment will terminate on the Date of Termination in accordance with Section 5 hereof and this Agreement shall terminate without further obligations on the part of the Company
other than the obligation to pay to you the following: 
 (a) the Accrued Obligations, which shall be paid to you
in a single sum payment within thirty (30) calendar days of the Date of Termination; and 
 (b) the Other
Benefits, which shall be paid in accordance with the terms and conditions of such plans, programs or policies. 
 4.
Termination as a Result of an Involuntary Termination. In the event that your employment with the Company should terminate during the Change of Control Period as a result of an Involuntary Termination, the Company will be obligated, except as
provided in Section 8 or Section 9 hereof, to provide you the following benefits: 
 (a) Severance
Payment. The Company shall pay to you the following amounts: 
 (i) the Accrued Obligations, which shall be
paid to you in a single sum cash payment no later than the later of (A) fifteen (15) calendar days following the Date of Termination or (B) the effective date of the Waiver and Release; 

(ii) the Pro Rata Bonus, which shall be paid to you in a single sum cash payment no later than the later of
(A) fifteen (15) calendar days following the Date of Termination or (B) the effective date of the Waiver and Release; 

  
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 (iii) an amount equal to the product of (A) 2.5 times (B) the sum
of (1) your Adjusted Base Salary plus (2) the greater of (x) your Target Bonus or (y) the average of the annual bonuses paid or to be paid to you with respect to the immediately preceding three (3) fiscal years, which amount
shall be paid to you in a single sum cash payment no later than the later of (i) fifteen (15) calendar days following the Date of Termination or (ii) the effective date of the Waiver and Release; 

(iv) if you had previously consented to the Company’s request to relocate your principal place of employment more
than forty (40) miles from its location immediately prior to the Change of Control Date, all unreimbursed relocation expenses incurred by you in accordance with the Company’s relocation policies, which expenses shall be paid to you in a
single sum cash payment no later than the later of (A) fifteen (15) calendar days following the Date of Termination or (B) the effective date of the Waiver and Release; and 

(v) the Other Benefits, which shall be paid in accordance with the then-existing terms and conditions of such plans,
programs or policies. 
 (b) Benefit Continuation. You and your then eligible dependents shall continue to
be covered by and participate in the group health and dental care plans (collectively, “Health Plans”) of the Company (at the Company’s cost) in which you participated, or were eligible to participate, immediately prior to the
Date of Termination through the end of the Benefit Continuation Period; provided, however, that any medical or dental welfare benefit otherwise receivable by you hereunder shall be reduced to the extent that you become
covered under a group health or dental care plan providing comparable medical and health benefits. You shall be eligible to participate in such Health Plans on terms that are at least as favorable as those in effect immediately prior to the Date of
Termination. However, in the event that the terms of the Company’s Health Plans do not permit you to participate in those plans (other than pursuant to an election under the Consolidated Omnibus Budget Reconciliation Act of 1985
(“COBRA”)), in lieu of your and your eligible dependent’s coverage and participation under the Company’s Health Plans, the Company shall pay to you within thirty (30) calendar days of the Date of Termination a lump
sum equal to two (2) times your monthly COBRA premium amount for the number of months remaining in the Benefit Continuation Period. In addition, for the purposes of coverage under COBRA, your COBRA event date will be the date of loss of
coverage described in this paragraph above. 
 (c) Outplacement Services. The Company shall, at its sole
expense as incurred, provide you with outplacement services on such terms and conditions as may be reasonably determined by the Company prior to the Change of Control Date. 

(d) Acceleration of Stock Awards. All your outstanding awards of restricted stock, stock options, and other
equity-based compensation shall become fully vested and exercisable in full immediately upon the Date of Termination; provided, however, that any such awards that would be out of the money as of the Date of Termination may be terminated pursuant to
Section 9(b) hereof. In addition, all your outstanding awards of restricted stock, stock options, and other equity-based compensation that are not assumed or substituted with awards of equivalent value in connection with a Change of Control
shall become fully vested and exercisable in full immediately upon the Change of Control Date. 

  
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 5. Date and Notice of Termination. Any termination of your employment by the Company
or by you during the Change of Control Period shall be communicated by a notice of termination to the other party hereto (the “Notice of Termination”). The Notice of Termination shall indicate the specific termination provision in
this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of your employment under the provision so indicated. The date of your termination of employment with the
Company (the “Date of Termination”) shall be determined as follows: (i) if your employment is terminated for Disability, thirty (30) calendar days after a Notice of Termination is received by you (provided that you shall
not have returned to the full-time performance of your duties during such thirty (30) calendar day period), (ii) if your employment is terminated by the Company in an Involuntary Termination, the later of the date specified in the Notice
of Termination or five (5) calendar days after the date the Notice of Termination is received by you, (iii) if you terminate your employment for Good Reason, five (5) calendar days after the date the Notice of Termination is received
by the Company, and (iv) if your employment is terminated by the Company for Cause, the later of the date specified in the Notice of Termination or five (5) calendar days following the date such notice is received by you. The Date of
Termination for a resignation of employment other than for Good Reason shall be the date set forth in the applicable notice. 

6. No Mitigation or Offset; D&O Insurance. 
 (a) No Mitigation or Offset. You shall not be required to mitigate the amount of any payment provided for herein by seeking other employment or otherwise, nor shall the amount of any payment or
benefit provided for herein be reduced by any compensation earned by you as the result of employment by another employer. 

(b) D&O Insurance, and Indemnification. Through at least the sixth anniversary of the Date of Termination, the Company shall
maintain coverage for you as a named insured on all directors’ and officers’ insurance maintained by the Company for the benefit of its directors and officers on at least the same basis as all other covered individuals and provide you with
at least the same corporate indemnification as it provides to other senior executives. 
 7. Confidentiality. You agree
to treat all Confidential Information as confidential information entrusted to you solely for use as an employee of the Company, and shall not divulge, reveal or transmit any Confidential Information in any way to persons not employed by the Company
at any time from the date hereof until the end of time, whether or not you continue to be an employee of the Company, unless authorized in writing by the Company. 
 8. Code Section 409A. This Agreement is intended to comply with the provisions of Section 409A of the Code and this Agreement should be interpreted accordingly; the parties intend that
any payments hereunder that would otherwise be subject to Section 409A shall be made within the short-term deferral period provided in the Treasury Regulations adopted pursuant to Section 409A. Without limiting any of the foregoing and
notwithstanding anything to the contrary contained herein, if you are a “specified employee,” as defined in Section 409A 

  
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of the Code, at the time you would otherwise be entitled to receive any specific payment hereunder, no distributions shall be made with respect to that specific payment until the earliest date
permitted by Section 409A(a)(2) of the Code. All other payments that do not result in any additional payments, liability or penalties under the Code shall be made as specified. 

9. Certain Reduction of Payments by the Company. 

(a) Best Net. Anything in this Agreement to the contrary notwithstanding, in the event that the independent
auditors of the Company (the “Accounting Firm”) determine that receipt of all payments or distributions in the nature of compensation to or for your benefit, whether paid or payable pursuant to this Agreement or otherwise
(“Payments”), would subject you to tax under Section 4999 of the Code, the Payments paid or payable pursuant to this Agreement (the “COC Payments”), including payments made with respect to equity-based
compensation accelerated pursuant to Section 4(d) hereof, but excluding payments made with respect to Sections 4(a)(i) and 4(a)(ii) hereof (except as provided below), may be reduced (but not below zero) to the Reduced Amount, but only if the
Accounting Firm determines that the Net After-Tax Receipt of unreduced aggregate Payments would be equal to or less than the Net After-Tax Receipt of the aggregate Payments as if the COC Payments were reduced to the Reduced Amount. If such a
determination is not made by the Accounting Firm, you shall receive all COC Payments to which you are entitled under this Agreement. 
 (b) Reduced Amount. If the Accounting Firm determines that COC Payments should be reduced to the Reduced Amount, the Company shall promptly give you notice to that effect and a copy of the detailed
calculation thereof. Absent manifest error, all determinations made by the Accounting Firm under this Section 9 shall be binding upon you and the Company and shall be made as soon as reasonably practicable and in no event later than twenty
(20) business days following the Change of Control Date, or such later date on which there has been a Payment. For purposes of reducing the COC Payments to the Reduced Amount, only amounts payable under this Agreement (and no other Payments)
shall be reduced. The reduction of the COC Payments, if applicable, shall be made by reducing the payments and benefits hereunder in the following order, and only to the extent necessary to achieve the Reduced Amount: 

The Company shall reduce or eliminate the COC Payments, by first reducing or eliminating the portion of the COC Payments which are not
payable in cash and then by reducing or eliminating cash payments, in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time from the determination. 

All fees and expenses of the Accounting Firm in implementing the provisions of this Section 9 shall be borne by the Company. To the
extent requested by you, the Company shall cooperate with you in good faith in valuing services provided or to be provided by you (including without limitation, your agreeing to refrain from performing services pursuant to a covenant not to compete
or similar covenant) before, on or after the date of a change in ownership or control of the Company (within the meaning of Q&A-2(b) of the Treasury Regulations adopted under Section 280G of the Code (the “Regulations”)),

  
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such that payments in respect of such services may be considered reasonable compensation within the meaning of Q&A-9 and Q&A-40 to Q&A-44 of the Regulations and/or exempt from the
definition of the term “parachute payment” within the meaning of Q&A-2(a) of the Regulations in accordance with Q&A-5(a) of the Regulations. 
 (c) Subsequent Adjustment. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is
possible that amounts will have been paid or distributed by the Company to you or for your benefit pursuant to this Agreement which should not have been so paid or distributed (“Overpayment”) or that additional amounts which will
have not been paid or distributed by the Company to you or for your benefit pursuant to this Agreement could have been so paid or distributed (“Underpayment”), in each case, consistent with the calculation of the Reduced Amount
hereunder. In the event that the Accounting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against either the Company or you that the Accounting Firm believes has a high probability of success, determines that an
Overpayment has been made, you shall pay any such Overpayment to the Company; provided, however, that no amount shall be payable by you to the Company if and to the extent such payment would not either reduce the amount of taxes to
which you are subject under Sections 1 and 4999 of the Code or generate a refund of such taxes. In the event that the Accounting Firm, based upon controlling precedent or substantial authority, determines that an Underpayment has occurred, any
such Underpayment shall be paid promptly (and in no event later than sixty (60) days following the date on which the Underpayment is determined) by the Company to you or for your benefit. 

10. Successors; Binding Agreement. 
 (a) Assumption by Successor. The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or
assets of the Company expressly to assume and to agree to perform its obligations under this Agreement in the same manner and to the same extent that the Company would be required to perform such obligations if no such succession had taken place;
provided, however, that no such assumption shall relieve the Company of its obligations hereunder. As used herein, the “Company” shall mean the Company as hereinbefore defined and any successor to its
business or assets as aforesaid which assumes and agrees to perform its obligations by operation of law or otherwise. 
 (b) Enforceability; Beneficiaries. This Agreement shall be binding upon and inure to the benefit of you (and your personal representatives and heirs) and the Company and any organization which
succeeds to substantially all of the business or assets of the Company, whether by means of merger, consolidation, acquisition of all or substantially all of the assets of the Company or otherwise, including, without limitation, as a result of a
Change of Control or by operation of law. This Agreement shall inure to the benefit of and be enforceable by your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If you should die
while any amount would still be payable to you hereunder if you had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to your devisee, legatee or other designee or, if
there is no such designee, to your estate. 

  
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 11. Definitions. For purposes of this Agreement, the following capitalized terms have
the meanings set forth below: 
 (a) “Accounting Firm” has the meaning assigned thereto in
Section 9 hereof. 
 (b) “Accrued Obligations” shall mean all compensation earned or
accrued through the Termination Date but not paid as of the Termination Date, including base salary, bonus for the prior performance year, accrued but unused vacation, and reimbursement of business expenses accrued in accordance with the
Company’s business expense reimbursement policies. 
 (c) “Adjusted Base Salary” means the
greater of your base salary in effect immediately prior to (i) the Change of Control Date or (ii) the Date of Termination. 
 (d) “Agreement” has the meaning assigned thereto in the second introductory paragraph hereof. 
 (e) “Benefit Continuation Period” means the period beginning on the Date of Termination and ending on the last day of the month in which occurs the earlier of (i) the 30-month
anniversary of the Date of Termination and (ii) the date on which you elect coverage for you and your covered dependents under substantially comparable benefit plans of a subsequent employer. 

(f) “Board” has the meaning assigned thereto in the first introductory paragraph hereof. 

(g) “Bonus Opportunity” for any performance year means your maximum cash bonus opportunity for that year,
on the assumption that the Company achieves all applicable performance targets and that you achieve all applicable individual performance criteria. 
 (h) “Cause” shall mean (i) your engaging in willful and continued failure to substantially perform your material duties with the Company (other than due to becoming Disabled);
provided, however, that the Company shall have provided you with written notice of such failure and such failure is not cured by you within twenty (20) calendar days of such notice; (ii) your engaging in misconduct that is
materially and demonstrably injurious to the Company; (iii) your conviction of, or plea of no contest to, a felony, other crime of moral turpitude; or (iv) a final non-appealable adjudication in a criminal or civil proceeding that you have
committed fraud. For purposes of the previous sentence, no act or failure to act on your part shall be deemed “willful” if it is done, or omitted to be done, by you in good faith and with a reasonable belief that it was in the best
interest of the Company. 

  
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 (i) “Change of Control” shall mean: 

(i) any “person” (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”)) becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (A) the then-outstanding shares of common stock of the Company (the
“Outstanding Company Common Stock”) or (B) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting
Securities”); provided, however, that, for purposes of this Section, the following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from the Company, (ii) any acquisition by the Company,
(iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company, or (iv) any acquisition pursuant to a transaction that complies with Sections 11(i)(iii)(A), (B), and (C); 

(ii) during any period of two consecutive years (not including any period prior to the Effective Date), individuals who at
the beginning of such period constituted the Board and any new directors, whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least three-fourths of the directors then still in
office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or 

(iii) there is a consummation of a reorganization, merger, statutory share exchange or consolidation or similar
transaction involving the Company or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or stock of another entity by the Company or any of its subsidiaries
(each, a “Business Combination”), in each case unless, following such Business Combination, (A) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and the
Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock (or, for a non-corporate entity, equivalent securities) and
the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors (or, for a non-corporate entity, equivalent governing body), as the case may be, of the entity resulting from such Business
Combination (including, without limitation, an entity that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same
proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any corporation resulting from
such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more of, respectively, the then-outstanding
shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such corporation, except to the extent that such ownership existed prior to the Business
Combination, and (C) at 

  
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least a majority of the members of the board of directors (or, for a non-corporate entity, equivalent governing body) of the entity resulting from such Business Combination were members of the
incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination. 
 (j) “Change of Control Date” has the meaning assigned thereto in Section 1 hereof. 
 (k) “Change of Control Period” has the meaning assigned thereto in the second introductory paragraph hereof. 

(l) “COC Payments” has the meaning assigned thereto in Section 9 hereof. 

(m) “Code” shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations
promulgated thereunder. 
 (n) “Company” has the meaning assigned thereto in the first
introductory paragraph hereof. 
 (o) “Confidential Information” shall mean all financial
information, trade secrets, personnel records, training and operational manuals, records, contracts, lists, business procedures, business methods, accounts, brochures, and handbooks that was learned or obtained by you in the course of your
employment by the Company, and all other documents relating to the Company or persons doing business with the Company that are proprietary to the Company. 
 (p) “Date of Termination” has the meaning assigned thereto in Section 5 hereof. 
 (q) “Disability” shall mean your incapacity due to physical or mental illness as defined in the long-term disability plan sponsored by the Company or an affiliate of the Company for your
benefit and which causes you to be absent from the full-time performance of your duties. 
 (r)
“Effective Period” shall mean the period commencing on the date hereof and ending on the third anniversary of the date of this Agreement; provided, however, that beginning on the third anniversary of the date of this
Agreement and on each one-year anniversary thereafter (each such date a “Renewal Date”), the Effective Period shall be automatically extended for a period of two years beginning on such Renewal Date, unless at least sixty
(60) calendar days prior to such Renewal Date, the Company shall give notice that the Effective Period shall not be so extended. 
 (s) “Good Reason” shall mean the occurrence of any of the following events or circumstances: 
 (i) a substantial adverse change in your title, position, offices, authority, status, or the nature of your duties or responsibilities from those in effect immediately prior to the Change of Control Date,
or in the position, level, or status of the person to whom you report. 

  
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 (ii) a reduction by the Company in your annual base salary, Target Bonus, or
benefits as in effect immediately prior to the Change of Control Date or as the same may be increased from time to time thereafter, other than a general reduction in benefits applicable across similarly situated executives within the Company;

 (iii) a failure by the Company to pay you material compensation or benefits when due including, without
limitation, failure by the Company to pay any relocation expenses or Other Benefits accrued prior to the Effective Date; 
 (iv) the relocation of the office of the Company where you are principally employed immediately prior to the Change of Control Date to a location which is more than forty (40) miles from such office
of the Company (except for required travel on the Company’s business to an extent substantially consistent with your customary business travel obligations in the ordinary course of business prior to the Change of Control Date); or 

(v) any failure by a successor to the Company to assume and agree to perform this Agreement, as contemplated by
Section 10(a) hereof, or any agreement with respect to your outstanding equity awards. 
 provided,
however, that no event or condition set forth in subparagraphs (i) through (iii) above shall constitute Good Reason unless (x) you give the Company written notice of your objection to such event or condition within sixty
(60) calendar days of such event or condition and (y) such event or condition is not corrected, in all material respects, by the Company within thirty (30) calendar days of its receipt of such notice; and provided, further,
however, that your mental or physical incapacity following the occurrence of an event described above in subparagraphs (i) through (v) above shall not affect your ability to terminate employment for Good Reason and that your death
following delivery of a Notice of Termination shall not affect your estate’s entitlement to the payments and benefits provided hereunder upon an Involuntary Termination. 

(t) “Involuntary Termination” shall mean, during the Change of Control Period, (i) your termination
of employment by the Company without Cause or (ii) your resignation of employment with the Company for Good Reason. 
 (u) “Net After-Tax Receipt” shall mean the present value (as determined in accordance with Section 280G(d)(4) of the Code) of a Payment net of all taxes imposed on you with respect
thereto under Sections 1 and 4999 of the Code and under applicable state and local laws, determined by applying the highest marginal rate under Section 1 of the Code and under state and local laws which applied to your taxable income for
the immediately preceding taxable year, or such other rate(s) as you certify as likely to apply to you in the relevant tax year(s). 
 (v) “Notice of Termination” has the meaning assigned thereto in Section 5 hereof. 

  
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 (w) “Other Benefits” means, to the extent not theretofore
paid or provided, any other amounts or benefits required to be paid or provided to you or that you are eligible to receive under any plan, program, policy, practice, contract or agreement of the Company in accordance with such applicable terms at
the time of the Date of Termination. Nothing herein shall prohibit the Company from changing, modifying, amending, or eliminating any benefit plans in accordance with the terms of such plans prior to the Date of Termination, with or without prior
notice. 
 (x) “Overpayment” has the meaning assigned thereto in Section 9 hereof.

 (y) “Pro Rata Bonus” means a pro rata portion of your Bonus Opportunity for the performance
year in which the Date of Termination occurs, calculated based on the number of days that you are employed in the performance year up through and including the Date of Termination. 

(z) “Payment” has the meaning assigned thereto in Section 9 hereof. 

(aa) “Reduced Amount” shall mean $1,000.00 less than the greatest amount of COC Payments that can be paid
that would not result in the imposition of the excise tax under Section 4999 of the Code. 
 (bb)
“Target Bonus” for any year means your total cash target, but not maximum, bonus for that year, on the assumption that the Company has achieved, but not exceeded, all applicable performance targets and that you have achieved, but
not exceeded, all applicable individual performance criteria. 
 (cc) “Underpayment” has the
meaning assigned thereto in Section 9 hereof. 
 (dd) “Tax Authority” has the meaning
assigned thereto in Section 9 hereof. 
 12. Notice. For the purpose of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the Board of Directors,
LKQ Corporation, 500 West Madison Street, Suite 2800, Chicago, IL 60661, with a copy to the General Counsel of the Company, or to you at the address set forth on the first page of this Agreement or to such other address as either party may have
furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt. 
 13. Release. As a condition to receiving any payments or benefits pursuant to this Agreement by reason of your death, Disability or Involuntary Termination, you (or in the case of your
death, the executor of your estate) must execute a waiver and release of claims, including confidentiality and non-disparagement covenants, substantially in the form approved by the Company prior to the Change of Control Date (as set forth on
Exhibit A attached hereto) (a “Waiver and Release”), and such Waiver and Release must be delivered to the Company no later than 60 days after the end of your taxable year in which occurs the later of (i) the Change of
Control Date or (ii) the termination of your employment with the Company. 

  
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 14. Arbitration. Any dispute or controversy arising under or in connection with this
Agreement that cannot be mutually resolved by the parties hereto shall be settled exclusively by arbitration in Chicago, Illinois under the employment arbitration rules of the American Arbitration Association before one arbitrator of exemplary
qualifications and stature, who shall be selected jointly by the Company and you, or, if the Company and you cannot agree on the selection of the arbitrator, such arbitrator shall be selected by the American Arbitration Association. Judgment may be
entered on the arbitrator’s award in any court having jurisdiction. The parties hereby agree that the arbitrator shall be empowered to enter an equitable decree mandating specific enforcement of the terms of this Agreement. The Company agrees
to pay as incurred, to the fullest extent permitted by law, the costs and fees of the arbitration, including all legal fees and expenses which you may reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company,
you or others of the validity or enforceability of, or liability under, any provision of this Agreement (including as a result of any contest by you about the amount of any payment pursuant to this Agreement), plus in each case interest on any
delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code. 
 15.
Miscellaneous. 
 (a) Amendments, Waivers, Etc. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to in writing. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to
be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly set forth in this Agreement and this Agreement shall supersede all prior agreements, negotiations, correspondence, undertakings and communications of the parties, oral or
written, with respect to the subject matter hereof. 
 (b) Validity. The invalidity or unenforceability of
any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 

(c) Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an
original but all of which together will constitute one and the same instrument. 
 (d) No Contract of
Employment. Nothing in this Agreement shall be construed as giving you any right to be retained in the employ of the Company or shall affect the terms and conditions of your employment with the Company prior to the commencement of the Change of
Control Period. 
 (e) Withholding. Amounts paid to you hereunder shall be subject to all applicable
federal, state and local withholding taxes. 

  
 12 

 (f) Source of Payments. All payments provided under this Agreement
shall be paid in cash from the general funds of the Company, and no special or separate fund shall be established, and no other segregation of assets made, to assure payment. You will have no right, title or interest whatsoever in or to any
investments which the Company may make to aid it in meeting its obligations hereunder. To the extent that any person acquires a right to receive payments from the Company hereunder, such right shall be no greater than the right of an unsecured
creditor of the Company. 
 (g) Headings. The headings contained in this Agreement are intended solely for
convenience of reference and shall not affect the rights of the parties to this Agreement. 
 (h) Governing
Law. This Agreement shall be subject to the laws of the state of Delaware, without regard to conflicts of law. 
 (i)
Effect on Benefit Plans. In the event of any inconsistency between the provisions of this agreement and the provisions of any benefit plan of the Company, the provisions that are more favorable to you shall control. 

*     *     *     *     * 

By signing below, you acknowledge that this Agreement sets forth our agreement on the subject matter hereof. Kindly sign and return to
the Company the enclosed copy of this letter which will then constitute our agreement on this subject. 
  

			
	Sincerely,
	
	 LKQ CORPORATION

		
	 By:
	 	 /s/ Victor M.
Casini                                        

	 Name: Victor M. Casini

	 Title: Senior Vice President and General Counsel

 Agreed to as of this 21st day of March, 2012 
  

	
	
	/s/ Robert L. Wagman
	 Robert L. Wagman,

	 President and Chief Executive Officer

  
 13 

 EXHIBIT A 
 WAIVER AND GENERAL RELEASE AGREEMENT 
 This Waiver and Release Agreement
(this “Release”) is entered into as of the date indicated on the signature page of this Release by and between LKQ Corporation, a Delaware corporation (the “Company”) and
            (“Employee”). Employee has been employed by the Company, and the parties are entering into this Release because the employment relationship is ending, without
fault or wrongdoing on the part of either the Company or Employee, who agree as follows: 
 1. Release. (a) In
exchange for the valuable consideration set forth in the Change of Control Agreement dated as of             , 20            (the
“Letter Agreement”), between Employee and the Company, the receipt and adequacy of which are herein acknowledged, Employee hereby agrees to release and forever discharge the Company and its present, former and future partners,
shareholders, affiliates, direct and indirect parents, subsidiaries, successors, directors, officers, employees, agents, attorneys, heirs and assigns (the “Released Parties”), from any and all claims, actions and causes of action
(the “Claims”) arising out of (i) his employment relationship with and service as an employee of the Company and its affiliates, and the termination of such relationship or service, or (ii) any event, condition,
circumstance or obligation that occurred, existed or arose on or prior to the date hereof, including, but not limited to any Claims under Title VII of the Civil Rights Act of 1964, the Rehabilitation Act of 1973, the Americans With Disabilities Act
of 1990, the Civil Rights Act of 1866, the Civil Rights Act of 1991, the Employee Retirement Income Security Act of 1974, the Family and Medical Leave Act of 1993, the California Fair Employment and Housing Act; the California Workers’
Compensation Act; the California Unruh and Ralph Civil Rights Laws; the California Alcohol and Drug Rehabilitation Law and any other federal, state or local law, statute, regulation or ordinance, or law of any foreign jurisdiction, whether such
Claim arises under statute or common law and whether or not Employee is presently aware of the existence of such Claim. Employee also forever releases, discharges and waives any right he may have to recover in any proceeding brought by any federal,
state or local agency against the Released Parties to enforce any laws. To ensure that this Release is fully enforceable in accordance with its terms, Employee agrees to waive any and all rights to any Claims, whether or not he knows or suspects
them to exist in his favor, which if known to him would have materially affected his execution of this Release. Notwithstanding the foregoing, this Release does not apply to Employee’s rights, claims, or benefits under the Letter Agreement or
to Employee’s rights, if any, to payment of benefits pursuant to any employee benefit plan. 
 (b) To ensure that this
Release is fully enforceable in accordance with its terms, Employee hereby agrees to waive any and all rights under Section 1542 of the California Civil Code (to the extent applicable) as it exists from time to time, which provides:

 A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at
the time of executing the release, which if known by him must have materially affected his settlement with the debtor. 

  
 A-1

 In addition, to ensure that this Release is fully enforceable in accordance with its
terms, Employee hereby agrees to waive any protection that may exist under any comparable or similar statute and under any principle of common law of the United States or any and all States. 

EMPLOYEE UNDERSTANDS THAT, BY SIGNING THIS RELEASE, EMPLOYEE WILL HAVE WAIVED ANY RIGHT THAT HE MAY HAVE TO BRING A LAWSUIT OR MAKE
ANY CLAIM AGAINST THE COMPANY AND THE RELEASED PARTIES BASED ON ANY ACT OR OMISSIONS BY THEM UP TO THE DATE OF SIGNING THIS AGREEMENT. 
 (c) In further consideration of the payments and benefits provided to Employee under the Letter Agreement, Employee hereby releases and forever discharges the Released Parties from any and all Claims
that he may have as of the date he signs this Release arising under the federal Age Discrimination in Employment Act of 1967, as amended, and the applicable rules and regulations promulgated thereunder (“ADEA”). By signing this
Release, Employee hereby acknowledges and confirms the following: (i) he was advised by the Company in connection with his termination to consult with an attorney of his choice prior to signing this Release and to have such attorney explain to
him the terms of this Release, including, without limitation, the terms relating to his release of claims arising under the ADEA; (ii) if Employee is 40 years of age or older as of the date of execution of this Release, he was given a period of
not fewer than 21 calendar days to consider the terms of this Release and to consult with an attorney of his choosing with respect thereto; and (iii) he is providing the release and discharge set forth in this Paragraph 1(c) only in exchange
for consideration in addition to anything of value to which he is already entitled. 
 2. No Legal Claim. Employee
has not commenced any legal action, which term includes, without limitation, any demand for arbitration proceedings and any charge, complaint, filing or submission with any federal, state or local agency, court or other tribunal, to assert any Claim
against a Released Party, and covenants and agrees not to do so in the future with respect to the matters released herein. If Employee commences or joins any legal action against a Released Party, Employee agrees that such an action is prohibited by
this Release, and further agrees to promptly indemnify such Released Party for its reasonable costs and attorneys fees incurred in defending such action as well as forfeit or return any monetary judgment obtained by Employee against any Released
Party in such action. Nothing in this Paragraph 2 is intended to reflect any party’s belief that Employee’s waiver of claims under the ADEA is invalid or unenforceable under this Release, it being the intent of the parties that such claims
are waived. 
 3. Nondisparagement. Employee agrees to refrain, except as required by law or in connection with a
judicial proceeding, from making directly or indirectly, now or at any time in the future, any written or oral statements, representations or other communications that disparage or are otherwise damaging to the business or reputation of the Released
Parties. 

  
 A-2

 4. Continuing Obligations. This Release shall not supersede any continuing
obligations Employee may have under the terms of the Letter Agreement or any other agreement between Employee and the Company. 

5. Disclaimer. Employee hereby certifies that Employee has read the terms of this Release, that Employee has been advised by the
Company to consult with an attorney of Employee’s own choice prior to executing this Release, that Employee has had an opportunity to do so, and that Employee understands the provisions and consequences of this Release. Employee further
certifies that the Company has not made any representation to Employee concerning this Release other than those contained herein. 
 6. Governing Law. This Release will be governed by and construed in accordance with the laws of the State of Delaware. 
 7. Separability of Clauses. If any provisions of this Release shall be finally determined to be invalid or unenforceable under applicable law by a court of competent jurisdiction, that part shall
be ineffective to the extent of such invalidity or unenforceability only, without in any way affecting the remaining provisions of this Release. 
 8. Counterparts. This Release may be executed by the parties hereto in counterparts, each of which shall be deemed an original, but both such counterparts shall together constitute one and the same
document. 
 9. Effectiveness. This Release shall be effective only when it has been executed by Employee and the
executed original has been returned to the Company, and any applicable revocation period has expired. 

  
 A-3

 IN WITNESS WHEREOF, the Company has caused this Release to be signed by its duly authorized
officer, and Employee has executed this Release as of the day and year indicated below Employee’s signature. 
  

			
	LKQ CORPORATION
		
	By:	 	
		 	  

		 	Name:
		 	Title:

 If Employee is 40 years of age or older as of the date of execution of this Release, Employee shall have the
right to revoke this Release during the seven-day period (the “Revocation Period”) commencing immediately following the date he signs and delivers this Release to the Company. The Revocation Period shall expire at 5:00 p.m. [INSERT
TIME ZONE] Time on the last day of the Revocation Period; provided, however, that if such seventh day is not a business day, the Revocation Period shall extend to 5:00 p.m. on the next succeeding business day. In the event Employee
revokes this Release, all obligations of the Company under this Release and under any agreement which are conditional upon this Release shall terminate and be of no further force and effect as of the date of such revocation. No such revocation by
Employee shall be effective unless it is in writing and signed by him and received by the Company prior to the expiration of the Revocation Period at the following address: 

LKQ Corporation 
 ATTN: General Counsel 
 500 W. Madison Street, Suite
2800 
 Chicago, IL 60661 
 I HAVE READ AND AGREE 
 TO THIS RELEASE: 

 

	
	  
	Name:
	Date:

  
 A-4First Amendment to Credit Agreement

 Exhibit 10.1 
 FIRST AMENDMENT TO CREDIT AGREEMENT 
 First
Amendment to Credit Agreement, dated the 19th day of
March, 2012, by and among UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC., a Delaware corporation (“Universal”), DUNKIRK SPECIALTY STEEL, LLC., a Delaware limited liability company (“Dunkirk”), NORTH JACKSON SPECIALTY STEEL,
LLC, a Delaware limited liability company (“North Jackson”) (Universal, Dunkirk and North Jackson are, each, a “Borrower” and collectively, the “Borrowers”), USAP HOLDINGS, INC., a Delaware corporation (the
“Guarantor”), PNC Bank, National Association (“PNC”) and various other financial institutions from time to time (PNC and such other financial institutions are each, a “Lender” and collectively, the “Lenders”)
and PNC, as administrative agent for the Lenders (PNC, in such capacity, the “Administrative Agent”) (the “First Amendment”). 
 W I T N E S S E T H: 
 WHEREAS, the Borrowers, the Guarantor, the Lenders party thereto and the Administrative Agent entered into that certain Credit Agreement, dated as of August 18, 2011, pursuant to which, among other
things, the Lenders agreed to extend credit to the Borrowers (as amended, modified, supplemented or restated from time to time, the “Credit Agreement”); and 
 WHEREAS, the Borrowers and the Guarantor desire to amend certain provisions of the Credit Agreement and the Administrative Agent and the Lenders desire to permit such amendments pursuant to the terms and
conditions set forth herein. 
 NOW, THEREFORE, in consideration of the premises contained herein and other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows: 
 1. All capitalized terms used herein which are defined in the Credit Agreement shall have the same meaning herein as in the Credit Agreement unless the context clearly indicates otherwise. 

2. The cover page of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the cover page attached hereto
as Exhibit A. 
 3. The first “WHEREAS” clause of the Credit Agreement is hereby deleted in its entirety
and in its stead is inserted the following: 
 The Borrowers have requested the Lenders to provide (i) a
revolving credit facility to the Borrowers in an aggregate principal amount not to exceed One Hundred Five Million and 00/100 Dollars ($105,000,000.00) and (ii) a Twenty Million and 00/100 Dollar ($20,000,000.00) term loan facility. In
consideration of their mutual covenants and agreements hereinafter set forth and intending to be legally bound hereby, the parties hereto covenant and agree as follows: 

 4. Section 1.1 of the Credit Agreement is hereby amended by deleting the following
definitions in their entirety: 
 Account 

Account Debtor 
 Adjustment Date 
 Borrowing Base 

Borrowing Base Certificate 
 Inventory 
 Qualified Accounts 

Qualified Inventory 
 Schedule of Accounts 
 Schedule of Inventory

 Schedule of Payables 
 5. Section 1.1 of the Credit Agreement is hereby amended by deleting the following definitions in their entirety and in their stead inserting the following: 

Applicable Commitment Fee Rate shall mean one-quarter of one percent (.25%) per annum. 

Expiration Date shall mean, with respect to the Revolving Credit Commitments, March 19, 2017. 

Lenders shall mean the financial institutions named on Schedule 1.1(B) and their respective successors and
assigns as permitted hereunder, each of which is referred to herein as a Lender. For the purpose of any Loan Document which provides for the granting of a security interest or other Lien to the Lenders or to the Administrative Agent for the benefit
of the Lenders as security for the Obligations, “Lenders” shall include any Affiliate of a Lender to which such Obligation is owed. 
 Maturity Date shall mean, with respect to the Term Loan Commitments, March 19, 2017. 
 Revolving Credit Commitment shall mean, as to any Lender at any time, the amount initially set forth opposite its name on Schedule 1.1(B) in the column labeled “Amount of

 
Commitment for Revolving Credit Loans,” as such Commitment is thereafter assigned or modified and Revolving Credit Commitments shall mean the aggregate Revolving Credit Commitments of
all of the Lenders. 
 Term Loan Commitment shall mean, as to any Lender at any time, the amount initially
set forth opposite its name on Schedule 1.1(B) in the column labeled “Amount of Commitment for Term Loans,” as such Commitment is thereafter assigned or modified and Term Loan Commitments shall mean the aggregate Term Loan
Commitments of all of the Lenders. 
 Undrawn Availability shall mean, as of any date of determination, an
amount equal to (a) the Revolving Credit Commitments, minus (b) the sum of (i) the Revolving Facility Usage plus (ii) all amounts due and owing to any Borrower’s trade creditors which are outstanding beyond normal trade
terms, plus (iii) fees and expenses then due from the Borrowers hereunder which have not been paid or charged to the account of the Borrowers. 
 6. Section 2.1 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 

2.1 Revolving Credit Commitments. 

2.1.1. Revolving Credit Loans. Subject to the terms and conditions hereof and relying upon the representations and
warranties herein set forth, each Lender severally agrees to make Revolving Credit Loans to the Borrowers at any time or from time to time on or after the date hereof to the Expiration Date; provided that after giving effect to each such Loan
(i) the aggregate amount of Revolving Credit Loans from such Lender shall not exceed such Lender’s Revolving Credit Commitment minus such Lender’s Ratable Share of the Letter of Credit Obligations and (ii) the Revolving Facility
Usage shall not exceed the Revolving Credit Commitments. Within such limits of time and amount and subject to the other provisions of this Agreement, the Borrowers may borrow, repay and reborrow pursuant to this Section 2.1. 

2.1.2 Swing Loan Commitment. Subject to the terms and conditions hereof and relying upon the representations and
warranties herein set forth, and in order to facilitate loans and repayments between Settlement Dates, PNC may, at its option, cancelable at any time for any reason whatsoever, make swing loans (the “Swing Loans”) to the Borrowers
at any time or from 

 
time to time after the date hereof to, but not including, the Expiration Date, in an aggregate principal amount up to but not in excess of Seven Million and 00/100 Dollars ($7,000,000.00),
provided that after giving effect to such Loan, the Revolving Facility Usage shall not exceed the Revolving Credit Commitments. Within such limits of time and amount and subject to the other provisions of this Agreement, the Borrowers may borrow,
repay and reborrow pursuant to this Section 2.1.2. 
 7. The fourth (4th) complete sentence of Section 2.8.1 of the Credit
Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
 Unless the Issuing
Lender has received notice from any Lender, Administrative Agent or any Loan Party, at least one day prior to the requested date of issuance, amendment or extension of the applicable Letter of Credit, that one or more applicable conditions in
Section 7 [Conditions of Lending and Issuance of Letters of Credit] is not satisfied, then, subject to the terms and conditions hereof and in reliance on the agreements of the other Lenders set forth in this Section 2.8, the Issuing Lender
or any of the Issuing Lender’s Affiliates will issue a Letter of Credit or agree to such amendment or extension, provided that each Letter of Credit shall (A) have a maximum maturity of twelve (12) months from the date of issuance
(provided that, subject to the following clause (B), the expiration date thereof may be subject to automatic extension), and (B) in no event expire later than the Expiration Date and provided further that in no event shall (i) the Letter
of Credit Obligations exceed, at any one time, Ten Million and 00/100 Dollars ($10,000,000.00) (the “Letter of Credit Sublimit”) or (ii) the Revolving Facility Usage exceed, at any one time, the Revolving Credit Commitments.

 8. Section 2.10(i)(D) of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the
following: 
 (D) Aggregate Revolving Credit Commitments. After giving effect to such increase, the total
Revolving Credit Commitments shall not exceed One Hundred Thirty Million and 00/100 Dollars ($130,000,000.00). 
 9. The fourth (4th) complete sentence of Section 3.2 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 

The Term Loans shall be payable in sixteen (16) consecutive quarterly installments each in the principal amount of
Seven Hundred Fifty Thousand and 00/100 Dollars ($750,000.00), which installments are due and payable by the Borrowers 

 
beginning July 1, 2013 and on each Payment Date thereafter, with the final installment of the remaining principal balance and accrued and unpaid interest due and payable on the Maturity
Date. 
 10. Section 5.7.1 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the
following: 
 5.7.1. [Reserved]. 
 11. Section 5.12 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 

5.12 [Reserved]. 
 12. Section 8.2.18 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 

8.2.18 Maximum Leverage Ratio. The Loan Parties shall not permit the Leverage Ratio to exceed (i) 3.25 to
1.00, calculated as of September 30, 2011, December 31, 2011, March 31, 2012 and June 30, 2012, in each case for the four (4) fiscal quarters then ended, (ii) 3.00 to 1.00, calculated as of September 30,
2012 and December 31, 2012, in each case for the four (4) fiscal quarters then ended and (iii) 2.75 to 1.00, calculated as of March 31, 2013 and the end of each fiscal quarter thereafter, in each case for the four (4) fiscal
quarters then ended. 
 13. Section 8.3.4 of the Credit Agreement is hereby deleted in its entirety and in its stead is
inserted the following: 
 8.3.4 [Reserved]. 

14. Section 8.3.5.6(i) of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following:

 (i) Annual Budget. The annual budget of Universal and its Subsidiaries, to be supplied not later than
forty-five (45) days after the commencement of the fiscal year to which any of the foregoing may be applicable, 
 15.
Section 11.5.1 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
 11.5.1 Notices Generally. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in Section 11.5.2 [Electronic
Communications]), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or 

 
overnight courier service, mailed by certified or registered mail or sent by telecopier (i) if to a Lender, to it at its address set forth in its administrative questionnaire, or
(ii) if to any other Person, to it at its address set forth on Schedule 1.1(B). 
 16. The first
(1st) complete sentence of Section 11.16 of the
Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
 Any Subsidiary
of any Loan Party which is required to join this Agreement pursuant to Section 8.2.9 [Subsidiaries, Partnerships and Joint Ventures] or Section 8.2.6(ii) [Liquidations, Mergers, Consolidations, Acquisitions] shall execute and deliver to
the Administrative Agent (i) a Borrower Joinder or a Guarantor Joinder, as determined by the Administrative Agent, and (ii) documents in the forms described in Section 7.1 [First Loans and Letters of Credit] that the Administrative
Agent may reasonably require, modified as appropriate to relate to such Subsidiary, including, without limitation, organizational documents, legal opinions and documents necessary to grant and perfect Prior Security Interests to the Administrative
Agent (for its benefit and for the benefit of the Lenders) in all Collateral held by such Subsidiary. 
 17. Schedule
1.1(A) of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the Schedule 1.1(A) attached hereto. 
 18. Schedule 1.1(B) of the Credit Agreement is hereby deleted in its entirety. 
 19. Schedule 1.1(C) of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the Schedule 1.1(B) attached hereto. 

20. Schedule 1.1(D) of the Credit Agreement is hereby deleted in its entirety. 

21. Schedule 1.1(E) of the Credit Agreement is hereby deleted in its entirety. 

22. Exhibit 8.3.3 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the Exhibit 8.3.3
attached hereto. 
 23. The provisions of Sections 2 through 22 of this First Amendment shall not become effective until the
Administrative Agent has received the following, each in form and substance acceptable to the Administrative Agent: 
  

	 	(a)	this First Amendment, duly executed by the Borrowers, the Guarantor, the Lenders and the Administrative Agent; 

 

	 	(b)	the documents and conditions listed in the Preliminary Closing Agenda set forth on Exhibit B attached hereto and made a part hereof;

	 	(c)	payment of all fees and expenses owed to the Agent and its counsel in connection with this First Amendment; and 

 

	 	(d)	such other documents as may be reasonably requested by the Administrative Agent. 

 24. The Loan Parties hereby reconfirm and reaffirm all representations and warranties, agreements and covenants made by and pursuant to the terms and conditions of the Credit Agreement, except as such
representations and warranties, agreements and covenants may have heretofore been amended, modified or waived in writing in accordance with the Credit Agreement or as set forth in this First Amendment and except any such representations or
warranties made as of a specific date or time, which shall have been true and correct in all material respects as of such date or time. 
 25. The Loan Parties acknowledge and agree that each and every document, instrument or agreement which at any time has secured payment of the Obligations including, but not limited to, the Credit
Agreement, each Patent, Trademark and Copyright Security Agreement, each Pledge Agreement, the Security Agreement, the Mortgage and the Lease Assignment continue to secure prompt payment when due of the Obligations. 

26. The Loan Parties hereby represent and warrant to the Lenders and the Administrative Agent that (i) the Loan Parties have the
legal power and authority to execute and deliver this First Amendment; (ii) the officers of the Loan Parties executing this First Amendment have been duly authorized to execute and deliver the same and bind the Loan Parties with respect to the
provisions hereof; (iii) the execution and delivery hereof by the Loan Parties and the performance and observance by the Loan Parties of the provisions hereof and of the Credit Agreement and all documents executed or to be executed therewith,
do not violate or conflict with the organizational documents of the Loan Parties or any law applicable to the Loan Parties or result in a breach of any provision of or constitute a default under any other agreement, instrument or document binding
upon or enforceable against the Loan Parties and (iv) this First Amendment, the Credit Agreement and the documents executed or to be executed by the Loan Parties in connection herewith or therewith constitute valid and binding obligations of
the Loan Parties in every respect, enforceable in accordance with their respective terms. 
 27. The Loan Parties represent and
warrant that (i) no Event of Default exists under the Credit Agreement, nor will any occur as a result of the execution and delivery of this First Amendment or the performance or observance of any provision hereof; and (ii) they presently
have no claims or actions of any kind at law or in equity against the Lenders and/or the Administrative Agent arising out of or in any way relating to the Credit Agreement or the other Loan Documents. 

28. Each reference to the Credit Agreement that is made in the Credit Agreement or any other document executed or to be executed in
connection therewith shall hereafter be construed as a reference to the Credit Agreement as amended hereby. 
 29. The
agreements contained in this First Amendment are limited to the specific agreements contained herein. Except as amended hereby, all of the terms and conditions of the Credit Agreement and the other Loan Documents shall remain in full force and
effect. This First Amendment amends the Credit Agreement and is not a novation thereof. 

 30. This First Amendment may be executed in any number of counterparts and by the different
parties hereto on separate counterparts each of which, when so executed, shall be deemed to be an original, but all such counterparts shall constitute but one and the same instrument. 

31. This First Amendment shall be governed by, and shall be construed and enforced in accordance with, the Laws of the Commonwealth of
Pennsylvania without regard to the principles of conflicts of law thereof. The Loan Parties hereby consent to the jurisdiction and venue of any federal or state court located in the Commonwealth of Pennsylvania with respect to any suit arising out
of or mentioning this First Amendment. 
 [INTENTIONALLY LEFT BLANK] 

 IN WITNESS WHEREOF, and intending to be legally bound, the parties hereto, have caused this
First Amendment to be duly executed by their duly authorized officers on the day and year first above written. 
  

							
		    	BORROWERS:	 	
			
	WITNESS:	    	UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC.	 	
				
	 /s/ Paul McGrath
	    	By:	 	 /s/ Douglas M. McSorley
	 	(SEAL)
	Paul McGrath, Secretary	    	Name:	 	Douglas M. McSorley	 	
		    	Title:	 	Chief Executive Officer	 	
			
	WITNESS:	    	DUNKIRK SPECIALTY STEEL, LLC	 	
				
	 /s/ Paul McGrath
	    	By:	 	 /s/ Douglas M. McSorley
	 	(SEAL)
	Paul McGrath, Secretary	    	Name:	 	Douglas M. McSorley	 	
		    	Title:	 	Executive Officer	 	
			
	WITNESS:	    	NORTH JACKSON SPECIALTY STEEL, LLC	 	
				
	 /s/ Paul McGrath
	    	By:	 	 /s/ Douglas M. McSorley
	 	(SEAL)
	Paul McGrath, Secretary	    	Name:	 	Douglas M. McSorley	 	
		    	Title:	 	Treasurer	 	
			
		    	GUARANTOR:	 	
			
	WITNESS:	    	USAP HOLDINGS, INC.	 	
				
	 /s/ Paul McGrath
	    	By:	 	 /s/ Douglas M. McSorley
	 	(SEAL)
	Paul McGrath, Secretary	    	Name:	 	Douglas M. McSorley	 	
		    	Title:	 	Vice President	 	

 
			
	ADMINISTRATIVE AGENT AND LENDERS:
	
	PNC BANK, NATIONAL ASSOCIATION, as a Lender and as Administrative Agent
		
	By:	 	 /s/ David B. Mitchell

	Name:	 	David B. Mitchell
	Title:	 	Executive Vice President
	
	THE HUNTINGTON NATIONAL BANK, as a Lender
		
	By:	 	 /s/ Michael P. DiClemente

	Name:	 	Michael P. DiClemente
	Title:	 	Vice President
	
	FIFTH THIRD BANK, as a Lender
		
	By:	 	 /s/Victor Notaro

	Name:	 	Victor Notaro
	Title:	 	Senior Vice President
	
	FIRST NATIONAL BANK OF PENNSYLVANIA, as a Lender
		
	By:	 	 /s/Diane Geisler

	Name:	 	Diane Geisler
	Title:	 	Vice President
	
	FIRST COMMONWEALTH BANK, as a Lender
		
	By:	 	 /s/Brian J. Sohocki

	Name:	 	Brian J. Sohocki
	Title:	 	Vice President

 EXHIBIT A 
 COVER SHEET 
 (See Attached) 

 $105,000,000 REVOLVING CREDIT FACILITY 

$20,000,000 TERM LOAN 
 CREDIT AGREEMENT 
 by and among 

UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC. 
 and 
 THE OTHER BORROWERS PARTY HERETO 

and 
 THE
GUARANTORS PARTY HERETO 
 and 
 THE LENDERS PARTY HERETO 
 and 

PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent 
 and 
 PNC CAPITAL MARKETS LLC, as Lead Arranger and Sole Bookrunner 

Dated as of August 18, 2011 
 CUSIP # 91383LAA7 

 EXHIBIT B 
 PRELIMINARY CLOSING AGENDA 
 (See Attached) 

 SCHEDULE 1.1(A) 

PRICING GRID— 
 VARIABLE PRICING AND LETTER OF CREDIT FEES BASED ON LEVERAGE RATIO 
  

																					
	 Level
	 	 Leverage Ratio
	 	 Letter
of
Credit
Fee
	  	Revolving
Credit Base
Rate Spread	 	  	Term
Loan
Base Rate
Spread	 	  	Revolving
Credit
LIBOR Rate
Spread	 	  	Term
Loan
LIBOR
Rate
Spread	 
							
	 I
	 	Less than 1.5 to 1.0	 	1.50%	  	 	.50%	  	  	 	.50%	  	  	 	1.50%	  	  	 	1.50%	  
							
	 II
	 	Greater than or equal to 1.5 to 1.0 but less than 2.25 to 1.0	 	1.75%	  	 	.75%	  	  	 	.75%	  	  	 	1.75%	  	  	 	1.75%	  
							
	 III
	 	Greater than or equal to 2.25 to 1.0 but less than 3.0 to 1.0	 	2.00%	  	 	1.00%	  	  	 	1.00%	  	  	 	2.00%	  	  	 	2.00%	  
							
	 IV
	 	Greater than or equal to 3.00 to 1.0	 	2.25%	  	 	1.25%	  	  	 	1.25%	  	  	 	2.25%	  	  	 	2.25%	  

 For purposes of determining the Applicable Margin and the Applicable Letter of Credit Fee Rate:

 (a) The Applicable Margin and the Applicable Letter of Credit Fee Rate shall be determined on the Closing Date based on the
Leverage Ratio computed on such date pursuant to the Closing Compliance Certificate. 
 (b) The Applicable Margin and the
Applicable Letter of Credit Fee Rate shall be recomputed as of the end of each fiscal quarter ending after the Closing Date based on the Leverage Ratio as of such quarter end. Any increase or decrease in the Applicable Margin or the

 
Applicable Letter of Credit Fee Rate computed as of a quarter end shall be effective on the date on which the Compliance Certificate evidencing such computation is due to be delivered under
Section 8.3.3 [Certificate of Universal]. If a Compliance Certificate is not delivered when due in accordance with such Section 8.3.3, then the rates in Level IV shall apply as of the first Business Day after the date on which such
Compliance Certificate was required to have been delivered and shall remain in effect until the date on which such Compliance Certificate is delivered. 
 (c) If, as a result of any restatement of or other adjustment to the financial statements of the Loan Parties or for any other reason, the Loan Parties or the Lenders determine that (i) the Leverage
Ratio as calculated by the Loan Parties as of any applicable date was inaccurate and (ii) a proper calculation of the Leverage Ratio would have resulted in higher pricing for such period, the Borrowers shall immediately and retroactively be
obligated to pay to the Administrative Agent for the account of the applicable Lenders, promptly on demand by the Administrative Agent (or, after the occurrence of an actual or deemed entry of an order for relief with respect to any Loan Party under
the Bankruptcy Code of the United States, automatically and without further action by the Administrative Agent, any Lender or the Issuing Lender), an amount equal to the excess of the amount of interest and fees that should have been paid for such
period over the amount of interest and fees actually paid for such period. This paragraph shall not limit the rights of the Administrative Agent, any Lender or the Issuing Lender, as the case may be, under Section 2.8 [Letter of Credit
Subfacility] or 4.3 [Interest After Default] or 9 [Default]. The Borrowers’ obligations under this paragraph shall survive the termination of the Commitments and the repayment of all other Obligations hereunder. 

 SCHEDULE 1.1(B) 

COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES 
 Part 1 - Commitments of Lenders and Addresses for Notices to Lenders 
  

																	
	 Lender
	  	Amount of
Commitment for
Revolving Credit
Loans	 	  	Amount of
Commitment for
Term Loans	 	  	Commitment	 	  	Ratable
Share	 
					
	 Name: PNC Bank, National Association

Address: Three PNC Plaza

225 Fifth Avenue
 Pittsburgh, Pennsylvania 15222
 Attention: James
O’Brien
 Telephone: (412) 762-7493

Telecopy: (412) 762-6484
	  	$	30,240,000.00	  	  	$	5,760,000.00	  	  	$	36,000,000.00	  	  	 	28.80	% 
					
	 Name: The Huntington National Bank

Address: 310 Grant Street, 4th Fl.
 Pittsburgh, Pennsylvania 15219
 Attention: Michael P.
DiClemente
 Telephone: (412) 227-6237

Telecopy: (877) 904-6218
	  	$	19,320,000.00	  	  	$	3,680,000.00	  	  	$	23,000,000.00	  	  	 	18.40	% 
					
	 Name: Fifth Third Bank

Address: 707 Grant Street, 21st Fl.
 Pittsburgh, Pennsylvania 15219
 Attention: Victor
Notaro
 Telephone:
(412) 291-            
 Telecopy:
(412) 291-5411
	  	$	16,800,000.00	  	  	$	3,200,000.00	  	  	$	20,000,000.00	  	  	 	16.00	% 

																	
	 Name: First National Bank of Pennsylvania

Address: One North Shore

12 Federal Street, Suite 420

Pittsburgh, Pennsylvania 15212

Attention: Diane Geisler

Telephone: 412-395-2036

Telecopy: 412-231-3584
	  	$	19,320,000.00	  	  	$	3,680,000.00	  	  	$	23,000,000.00	  	  	 	18.40	% 
					
	 Name: First Commonwealth Bank

Address: 437 Grant Street,

Suite 1600
 Attention: Brian J. Sohocki
 Telephone:
412-690-2205
 Telecopy: 412-690-2202
	  	$	19,320,000.00	  	  	$	3,680,000.00	  	  	$	23,000,000.00	  	  	 	18.40	% 
					
	 Total
	  	$	105,000,000.00	  	  	$	20,000,000.00	  	  	$	125,000,000.00	  	  	 	100	% 

 SCHEDULE 1.1(B) 

COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES 
 Part 2 - Addresses for Notices to Borrowers and Guarantors: 
  

			
	ADMINISTRATIVE AGENT
		
	Name:	 	PNC Bank, National Association
	Address:	 	Three PNC Plaza
		 	225 Fifth Avenue
		 	Pittsburgh, Pennsylvania 15222
	Attention:	 	James O’Brien
	Telephone:	 	(412) 762-7493
	Telecopy:	 	(412) 762-6484

  

			
	With a Copy To:
		
	Name:	 	 Agency Services, PNC Bank, National Association
 Mail Stop: P7-PFSC-04-I

	Address:	 	500 First Avenue
		 	Pittsburgh, PA 15219
	Attention:	 	Agency Services
	Telephone:	 	(412) 762-6442
	Telecopy:	 	(412) 762-8672

  

			
	With a Copy To:
		
	Name:	 	Thorp Reed & Armstrong, LLP
	Address:	 	One Oxford Centre
		 	310 Grant Street, 14th Floor
		 	Pittsburgh, PA 15219-1425
	Attention:	 	Jeffrey J. Conn, Esq.
	Telephone:	 	(412) 394-2324
	Telecopy:	 	(412) 394-2555

			
	BORROWERS:
	
	Name: Universal Stainless & Alloy Products, Inc.
	Address: 600 Mayer Street
	Bridgeville, PA 15017
	Attention: President
	Telephone:	 	(412) 257-7600
	Telecopy:	 	(412) 257-7605
	
	Name: Dunkirk Specialty Steel, LLC
	Address: 830 Brigham Road
	Dunkirk, NY 14048
	Attention: Executive Director
	Telephone:	 	(412) 257-7600
	Telecopy:	 	(412) 257-7605
	
	Name: North Jackson Specialty Steel, LLC
	Address: 2058 South Bailey Road
	North Jackson, OH 44451
	Attention: Executive Director
	Telephone:	 	(412) 257-7600
	Telecopy:	 	(412) 257-7605
	
	GUARANTOR:
	
	Name: USAP Holdings, Inc.
	Address: 1011 Centre Road, Suite 322
	Wilmington, DE 19805
	Attention: President
	Telephone:	 	(412) 257-7600
	Telecopy:	 	(412) 257-7605

 EXHIBIT 8.3.3 
 FORM OF COMPLIANCE CERTIFICATE 
 (See Attached) 

 EXHIBIT 8.3.3 

FORM OF 

COMPLIANCE CERTIFICATE 
                     , 201     

PNC Bank, National Association, 
 as
Administrative Agent 
 Three PNC Plaza 

255 Fifth Avenue 
 Pittsburgh, PA 15222

 Ladies and Gentlemen: 
 I refer to the Credit Agreement, dated as of August 18, 2011, by and among Universal Stainless & Alloy Products, Inc., a Delaware corporation (“Universal”), Dunkirk Specialty
Steel, LLC, a Delaware limited liability company (“Dunkirk”), North Jackson Specialty Steel, LLC, a Delaware limited liability company (“North Jackson”) (Universal, Dunkirk, and North Jackson are each, a “Borrower” and
collectively, the “Borrowers”), the Guarantors (as defined therein) party thereto, PNC Bank, National Association (“PNC Bank”) and various other financial institutions from time to time (PNC Bank and such other financial
institutions are each a “Lender” and collectively, the “Lenders”), and PNC Bank, as administrative agent for the Lenders (in such capacity, the “Administrative Agent”) (as may be amended, modified, supplemented or
restated from time to time, the “Credit Agreement”). Unless otherwise defined herein, terms defined in the Credit Agreement are used herein with the same meanings. 
 I, the
                                     [Chief Executive
Officer/President/Chief Financial Officer/Treasurer or Assistant Treasurer] of each Borrower, do hereby certify on behalf of the Borrowers as of the
                     [quarter/year] ended
                    , 201     (the “Report Date”), as follows: 

 

	1.	CHECK ONE: 

  

	 	___	The annual financial statements of Universal and its Subsidiaries, consisting of an audited consolidated balance sheet and related audited consolidated statements of
income, stockholders’ equity and cash flows being delivered to the Administrative Agent and the Lenders with this Compliance Certificate (a) are all in reasonable detail and set forth in comparative form the financial statements as of the
end of and for the preceding fiscal year, and (b) comply with the reporting requirements for such financial statements as set forth in Section 8.3.2 [Annual Financial Statements] of the Credit Agreement. 

OR 
  

	 	___	 The quarterly unaudited financial statements of Universal and its Subsidiaries, consisting of a consolidated balance sheet and related consolidated
statements 

	 	
of income, stockholders’ equity and cash flows being delivered to the Administrative Agent and the Lenders with this Compliance Certificate (a) are all in reasonable detail and have
been prepared in accordance with GAAP, consistently applied (subject to normal year-end audit adjustments), and set forth in comparative form the respective financial statements for the corresponding date and period in the previous fiscal year, and
(b) comply with the reporting requirements for such financial statements as set forth in Section 8.3.1 [Quarterly Financial Statements] of the Credit Agreement. 

 2.         The representations and warranties of the Loan Parties contained in Section 6 [Representations and Warranties] of the Credit Agreement and in each
of the other Loan Documents to which they are a party are true and correct in all respects with the same effect as though such representations and warranties had been made on and as of the Report Date (except representations and warranties which
relate solely to an earlier date or time, which representations and warranties were true and correct in all respects on and as of the specific dates or times referred to therein). 
 3.         In accordance with Section 6.2 [Updates to Schedules] of the Credit Agreement, attached hereto as Exhibit A are updates to the schedules to
the Credit Agreement (the “Updated Schedules”). Notwithstanding the foregoing, the Borrowers hereby acknowledge and agree that no schedule shall be deemed to have been amended, modified or superseded by the Updated Schedules, nor shall any
breach of warranty or representation resulting from the inaccuracy or incompleteness of any such Schedule be deemed to have been cured by the Updated Schedules, unless and until the Required Lenders, in their commercially reasonable discretion,
shall have accepted in writing the Updated Schedules. 
 4.         No Event of Default or Potential
Default has occurred and is continuing on the Report Date. 
 [NOTE: If any Event of Default or Potential Default has occurred
and is continuing, set forth on an attached sheet the nature thereof and the action which the Loan Parties have taken, are taking or propose to take with respect thereto.] 
 5.         Indebtedness (Section 8.2.1(iii)). Indebtedness of the Loan Parties and their Subsidiaries with respect to Purchase Money Security Interests and
capitalized leases, in the aggregate, as of the Report Date of $            , which does not exceed Ten Million and 00/100 Dollars ($10,000,000.00) in the aggregate for all such
Indebtedness. 
 6.         Indebtedness (Section 8.2.1(vii)). Unsecured Indebtedness of the Loan
Parties and their Subsidiaries, in the aggregate, as of the Report Date of $            , which is Indebtedness other than the Indebtedness permitted by clauses (i) through
(vi) of Section 8.2.1 of the Credit Agreement, which is not more than the permitted maximum of Five Million and 00/100 Dollars ($5,000,000.00) in the aggregate at any time outstanding. 

7.         Subsidiaries, Partnerships and Joint Ventures. The aggregate investment by the Loan Parties or
any of them in all Joint Ventures as of the Report Date is $            , which is not 

 
more than the permitted maximum of Fifteen Million and 00/100 Dollars ($15,000,000.00) at any time. 
 8.         Minimum Fixed Charge Coverage Ratio (Section 8.2.17). The Fixed Charge Coverage Ratio for the period equal to the four (4) consecutive fiscal
quarters ending as of the Report Date is _________ to 1.0, which is not less than the required ratio of 1.20 to 1.00 for such period. 
  

	 	(A)	Consolidated EBITDA for the period equal to the four (4) consecutive fiscal quarters ending as of the Report Date equals
$                     (the calculation of which is set forth in the attached spreadsheet). 

 

	 	(B)	Fixed Charges for the period equal to the four (4) consecutive fiscal quarters ending as of the Report Date equals
$                     (the calculation of which is set forth in the attached spreadsheet). 

 

	 	(C)	the ratio of item 8(A) to item 8(B) equals the Fixed Charge Coverage Ratio. 

 9.         Maximum Leverage Ratio (Section 8.2.18). The Leverage Ratio for the period equal to the four (4) consecutive fiscal quarters ending as of the
Report Date is                      to 1.0, which is not greater than the permitted ratio of [3.25 to 1.00] [3.00 to 1.00] [2.75 to 1.00] for such
period. 
  

	 	(A)	Senior Indebtedness as of the Report Date equals
$                     (the calculation of which is set forth in the attached spreadsheet). 

 

	 	(B)	Consolidated EBITDA for the period equal to the four (4) consecutive fiscal quarters ending as of the Report Date equals
$                     (the calculation of which is set forth in the attached spreadsheet). 

 

	 	(C)	The ratio of item 9(A) to item 9(B) equals the Leverage Ratio. 

 [INTENTIONALLY LEFT BLANK] 

 IN WITNESS WHEREOF, and intending to be legally bound, the undersigned have executed this
Compliance Certificate this              day of                     ,
201    . 
  

							
		    	BORROWERS:	 	
			
	WITNESS:	    	Universal Stainless & Alloy Products, Inc.	 	
				
	  
	    	By:	 	  
	 	(SEAL)
		    	Name:	 	  
	 	
		    	Title:	 	  
	 	
			
	WITNESS:	    	Dunkirk Specialty Steel, LLC	 	
				
	  
	    	By:	 	  
	 	(SEAL)
		    	Name:	 	  
	 	
		    	Title:	 	  
	 	
			
	WITNESS:	    	North Jackson Specialty Steel, LLC	 	
				
	  
	    	By:	 	  
	 	(SEAL)
		    	Name:	 	  
	 	
		    	Title:	 	  
	 	

 EXHIBIT A 

[see attached] 

 SPREADSHEET 

[see attached]

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