Document:

Exhibit
10.2

 

EXECUTION
VERSION

 

AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT

 

among

 

TRIMAS CORPORATION,

 

THE SELLERS NAMED HEREIN,

 

as Sellers,

 

and

 

TSPC, INC.,

 

as Purchaser

 

Dated as of December 29, 2009

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I Definitions

  	
  1

  
	
   

  	
   

  
	
  SECTION 1.01.

  	
  Definitions

  	
  1

  
	
  SECTION 1.02.

  	
  Other Terms

  	
  1

  
	
  SECTION 1.03.

  	
  Computation of Time Periods

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II Purchase, Conveyance
  and Servicing of Receivables

  	
  2

  
	
   

  	
   

  
	
  SECTION 2.01.

  	
  Sales

  	
  2

  
	
  SECTION 2.02.

  	
  Servicing of Receivables

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE III Consideration and
  Payment; Reporting

  	
  4

  
	
   

  	
   

  
	
  SECTION 3.01.

  	
  Purchase Price

  	
  4

  
	
  SECTION 3.02.

  	
  Payment of Purchase Price

  	
  4

  
	
  SECTION 3.03.

  	
  Reports

  	
  6

  
	
  SECTION 3.04.

  	
  Transfer of Records

  	
  6

  
	
  SECTION 3.05.

  	
  Payments and Computations

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV Representations and
  Warranties

  	
  7

  
	
   

  	
   

  
	
  SECTION 4.01.

  	
  Sellers’ Representations and Warranties

  	
  7

  
	
  SECTION 4.02.

  	
  Reaffirmation of Representations and Warranties by the
  Sellers; Notice of Breach

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE V Covenants of the
  Sellers

  	
  11

  
	
   

  	
   

  
	
  SECTION 5.01.

  	
  Covenants of the Sellers

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI Dilutions

  	
  17

  
	
   

  	
   

  
	
  SECTION 6.01.

  	
  Dilutions, Etc.

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII Conditions Precedent

  	
  17

  
	
   

  	
   

  
	
  SECTION 7.01.

  	
  Conditions Precedent

  	
  17

  
	
  SECTION 7.02.

  	
  Conditions Precedent to the Addition of a Seller

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII Term and Termination

  	
  20

  
	
   

  	
   

  
	
  SECTION 8.01.

  	
  Term

  	
  20

  
	
  SECTION 8.02.

  	
  Effect of Termination

  	
  21

  
	
  SECTION 8.03.

  	
  Termination of Sellers and Seller Divisions

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX Miscellaneous
  Provisions

  	
  21

  
	
   

  	
   

  
	
  SECTION 9.01.

  	
  Amendments, Etc.

  	
  21

  
	
  SECTION 9.02.

  	
  Governing Law; Submission to Jurisdiction

  	
  22

  
	
  SECTION 9.03.

  	
  Notices

  	
  22

  
	
  SECTION 9.04.

  	
  Severability of Provisions

  	
  23

  
	
  SECTION 9.05.

  	
  Assignment

  	
  23

  
	
  SECTION 9.06.

  	
  Further Assurances

  	
  23

  
	
  SECTION 9.07.

  	
  No Waiver; Cumulative
  Remedies

  	
  24

  

 

i

 

	
  SECTION 9.08.

  	
  Counterparts

  	
  24

  
	
  SECTION 9.09.

  	
  Binding Effect; Third-Party Beneficiaries

  	
  24

  
	
  SECTION 9.10.

  	
  Merger and Integration

  	
  24

  
	
  SECTION 9.11.

  	
  Headings

  	
  24

  
	
  SECTION 9.12.

  	
  Exhibits

  	
  24

  
	
  SECTION 9.13.

  	
  Addition of Sellers

  	
  24

  
	
  SECTION 9.14.

  	
  Confidentiality

  	
  24

  
	
  SECTION 9.15.

  	
  No Bankruptcy Petition Against the Purchaser

  	
  25

  
	
  SECTION 9.16.

  	
  Waiver of Jury Trial

  	
  25

  

 

ii

 

AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT

 

AMENDED AND RESTATED
RECEIVABLES PURCHASE AGREEMENT, dated as of December 29, 2009 (as amended,
supplemented or otherwise modified and in effect from time to time, this “Agreement”), among TRIMAS CORPORATION, a Delaware
corporation (“TriMas Corp.”), the subsidiaries
of TriMas Corp. identified as Sellers on Schedule I, as sellers, (each,
individually, a “Seller” and collectively, the “Sellers”), and TSPC, INC., a Nevada corporation, as
purchaser (in such capacity, the “Purchaser”).

 

W I T N E S S E T H :

 

WHEREAS, the Purchaser
desires to purchase from time to time certain accounts receivable existing on
the Initial Incremental Transfer Date and thereafter until the Purchase
Termination Date;

 

WHEREAS, the Sellers desire
to sell and assign from time to time such certain accounts receivable to the
Purchaser upon the terms and conditions hereinafter set forth;

 

WHEREAS, this Agreement
amends and restates in its entirety that certain Receivables Purchase Agreement
dated as of June 6, 2002 (as amended from time to time, the “Existing Agreement”) among TriMas Corp., Purchaser and each
of the Sellers listed on Schedule I of the Existing Agreement.

 

NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, it is hereby agreed by and among the Purchaser and the Sellers as
follows:

 

ARTICLE I

Definitions

 

SECTION 1.01.            Definitions.
All capitalized terms used herein shall have the meanings specified herein or,
if not so specified, the meaning specified in, or incorporated by reference
into, Schedule A to the Receivables Transfer Agreement, dated as of the date
hereof (as amended, supplemented or otherwise modified and in effect from time
to time, the “Receivables Transfer Agreement”),
by and among TSPC, Inc., as Transferor thereunder, TriMas Corp.,
individually, as Collection Agent and TriMas LLC, individually, as Guarantor
thereunder, the several “Purchasers” named therein (hereinafter, the “RTA Purchasers”), and Wachovia Bank, National Association,
as Administrative Agent thereunder.

 

SECTION 1.02.            Other Terms.
All accounting terms not specifically defined herein shall be construed in
accordance with GAAP. All terms used in Article 9 of the Relevant UCC, and
not specifically defined herein, are used herein as defined in such Article 9.

 

SECTION 1.03.            Computation of Time
Periods. Unless otherwise stated in this Agreement, in the
computation of a period of time from a specified date to a later specified
date, the word “from” means “from and including” and the words “to” and “until”
each means “to but 

 

1

 

excluding,” and the word “within” means “from and excluding a specified
date and to and including a later specified date.”

 

ARTICLE II

Purchase, Conveyance and Servicing of Receivables

 

SECTION 2.01.            Sales. (a) Upon
the terms and subject to the conditions set forth herein, and without recourse
(except such limited recourse as is specifically provided for in Sections 5.01(q) and
6.01), each of the Sellers hereby sells, assigns, transfers and conveys to the
Purchaser, and the Purchaser hereby purchases from each of the Sellers, all of
such Seller’s right, title and interest, whether now owned or hereafter
acquired and wherever located, in, to and under the Receivables outstanding on
the Initial Incremental Transfer Date and thereafter owned by each of the
Sellers, through any Purchase Termination Date, together with all Related
Security and Collections with respect thereto (to the extent that such right,
title and interest was not already purchased by the Purchaser) and all Proceeds
of the foregoing. Such interest in the Receivables, expressed as a dollar
amount, shall be equal to the aggregate unpaid balance of the Receivables from
time to time. Any sale, assignment, transfer and conveyance hereunder does not
constitute an assumption by the Purchaser of any obligations of the Sellers or
any other Person to Obligors or to any other Person in connection with the
Receivables or under any Related Security or any other agreement or instrument
relating to the Receivables.

 

(b)           In connection with
such sale, each Seller authorizes the filing on the Initial Incremental
Transfer Date, at its own expense, a financing statement or statements (Form UCC-1)
with respect to the Receivables and the other property described in Section 2.01(a) sold
by such Seller hereunder meeting the requirements of applicable state law in
such manner and in such jurisdictions as are necessary to perfect and protect
the interests of the Purchaser created hereby in the Receivables under the
Relevant UCC against all creditors of, and purchasers from, such Seller, and to
deliver either the originals of such financing statements or a file-stamped
copy of such financing statements or other evidence of such filings to the
Purchaser on the Initial Incremental Transfer Date.

 

(c)           Each of the Sellers
agrees that from time to time, at its expense, it will promptly execute and
deliver all instruments and documents and take all actions as may be necessary
or as the Purchaser may reasonably request in order to perfect or protect the
interest of the Purchaser in the Receivables purchased hereunder or to enable
the Purchaser to exercise or enforce any of its rights hereunder. Without
limiting the foregoing, each Seller will, in order to accurately reflect this
purchase and sale transaction, execute and file such financing or continuation
statements or amendments thereto or assignments thereof (as permitted pursuant
hereto) as may be requested by the Purchaser and mark its master data
processing records (or related subledger) and other documents with a legend
describing the purchase by the Purchaser of the Receivables and the interest
transferred by the Purchaser to the Administrative Agent pursuant to the
Receivables Transfer Agreement and stating “Substantially all accounts
receivable (including all Receivables as defined in the Amended and Restated
Receivables Purchase Agreement dated as of December 29, 2009 (as amended
or otherwise modified from time to time), among TriMas Corporation, a Delaware
corporation, each of the Sellers listed on Schedule I thereto or added pursuant
to an Additional Seller Supplement, and TSPC, Inc., a 

 

2

 

Nevada
corporation, as purchaser) have been sold to TSPC, Inc. and then
transferred to Wachovia Bank, National Association, as Administrative Agent for
various lenders. Details are available from Treasurer, TriMas Corporation, as
Collection Agent, at telephone No. (248) 631-5400.” The Sellers shall,
upon request of the Purchaser, obtain such additional search reports as the
Purchaser shall request. To the fullest extent permitted by applicable law, the
Purchaser shall be permitted to sign and file continuation statements and
amendments thereto and assignments thereof without the Sellers’ signatures.
Carbon, photostatic or other reproduction of this Agreement or any financing
statement shall be sufficient as a financing statement.

 

(d)           It is the express
intent of the Sellers, TriMas Corp, TriMas LLC and the Purchaser that the
conveyance of the Receivables by the Sellers to the Purchaser pursuant to this
Agreement be construed as a sale of such Receivables by the Sellers to the
Purchaser.  Further, it is not the
intention of the Sellers and the Purchaser that such conveyance be deemed a
grant of a security interest in the Receivables by the Sellers to the Purchaser
to secure a debt or other obligation of the Sellers.  The Sellers shall have no right or obligation
hereunder to repurchase or otherwise reacquire any such Receivables.  Except as otherwise provided in Sections 5.01(q) and
6.01 hereof, each sale of Receivables by the Sellers hereunder is made without
recourse of any kind.  However, in the
event that, notwithstanding the intent of the parties, the Receivables are
construed to constitute property of the Sellers, then (i) this Agreement
shall be deemed to be, and hereby is declared to be, a security agreement
within the meaning of the Relevant UCC; and (ii) the conveyances by each
of the Sellers provided for in this Agreement shall be deemed to be, and each
of the Sellers hereby grants to the Purchaser, a security interest in, to and
under all of such Seller’s right, title and interest in, to and under the
Receivables outstanding on the Initial Incremental Transfer Date and thereafter
owned by such Seller, together with all Related Security and Collections with
respect thereto and all Proceeds of the foregoing, whether now owned or
hereafter acquired and wherever located, to secure the rights of the Purchaser
set forth in this Agreement or as may be determined in connection therewith by
applicable law.  Further, in the event
that, notwithstanding the intent of the parties, the Receivables are construed
to constitute property of the Sellers, each Seller and the Purchaser represent
and warrant as to itself that each remittance of Collections by such Seller to
the Purchaser hereunder will have been (i) in payment of a debt incurred
by such Seller in the ordinary course of business or financial affairs of such
Seller and the Purchaser and (ii) made in the ordinary course of business
or financial affairs of such Seller and the Purchaser.  The Sellers and the Purchaser shall, to the
extent consistent with this Agreement, take such actions as may be necessary to
ensure that, if this Agreement were deemed to create a security interest in the
Receivables, such security interest would be deemed to be a perfected security
interest in favor of the Purchaser under applicable law and will be maintained
as such throughout the term of this Agreement.

 

SECTION 2.02.            Servicing of Receivables.
The servicing, administering and collection of the Receivables shall be
conducted by each of the Sellers, as agents of the Collection Agent, in
accordance with the terms and conditions of the Receivables Transfer Agreement.
Each Seller hereby agrees to perform, take or cause to be taken all such action
as may be necessary or advisable to collect each Receivable from time to time,
all in accordance with the terms and conditions of the Receivables Transfer
Agreement, the Credit and Collection Policy and applicable laws, rules and
regulations and with the care and diligence which each of the Sellers employs
in servicing similar receivables for its own account. The Collection Agent
hereby appoints each of the Sellers as its agent to enforce the Purchaser’s
rights and interests in, 

 

3

 

to and under the Receivables, the Related Security and the Collections
with respect thereto. To the extent permitted by applicable law, each Seller
hereby grants to any Collection Agent appointed under the Receivables Transfer
Agreement and at any time following the designation of a Collection Agent other
than TriMas Corp., any Seller or the Purchaser, to the Administrative Agent an
irrevocable power of attorney to take in the Seller’s name and on behalf of the
Seller any and all steps necessary or desirable, in the reasonable
determination of the Collection Agent or the Administrative Agent, to collect
all amounts due under any and all Receivables, including, without limitation,
endorsing the Seller’s name on checks and other instruments representing
Collections and enforcing such Receivables and the related Contracts. The
Collection Agent and each of the Sellers shall hold in trust for the Purchaser,
in accordance with its interests, all Records which evidence or relate to the
Receivables or Related Security, Collections and Proceeds with respect thereto.  Notwithstanding anything to the contrary
contained herein, from and after the occurrence of a Termination Event or a
Collection Agent Default, the Administrative Agent, upon written notice to the
Collection Agent on behalf of the RTA Purchasers, shall have the absolute and
unlimited right to terminate the Sellers’ servicing activities described in
this Section 2.02.  In consideration
of the foregoing, while each Seller is acting as a sub-servicer hereunder, the
Purchaser agrees to pay each Seller a servicing fee of 0.50% per annum on the
aggregate Outstanding Balance of the Receivables sold by such Seller, payable
monthly, for its performance of the duties and obligations described in this Section 2.02;
provided that any such monthly payment shall be reduced by any amounts payable
in such month by the RTA Purchasers to TriMas Corp., in its capacity as
Collection Agent pursuant to the Receivables Transfer Agreement.

 

ARTICLE III

Consideration and Payment; Reporting

 

SECTION 3.01.            Purchase Price.
The purchase price for the Receivables and related property conveyed to the
Purchaser by the Sellers under this Agreement (other than Receivables and
related property contributed to the Purchaser pursuant to the penultimate
sentence of Section 3.02(a)) on any Business Day shall be a dollar amount
equal to (a) the product of (i) the aggregate Outstanding Balance of
the Receivables sold on such Business Day and (ii) the then applicable
Discount Percentage less (b) the amount of the deemed Collection not paid
in cash by the Transferor to the Collection Agent pursuant to Section 2.10(a) of
the Receivables Transfer Agreement (the “Purchase Price”).

 

SECTION 3.02.            Payment of Purchase Price.  (a) The Purchase Price for each
Receivable sold hereunder on any Business Day shall be paid or provided for on
the Business Day on which such sale occurred (i) by payment in immediately
available funds to the extent the Purchaser has such funds available and (ii) to
the extent such funds are not available, by increasing the amount due under the
Subordinated Note by notation thereon; provided, however, that the aggregate
outstanding principal amount of the Subordinated Note on any Business Day
(after giving effect to all repayments thereof on or before such Business Day)
shall not exceed the lesser of (x) 30% of the Outstanding Balance of the
Receivables purchased hereunder existing on such Business Day and (y) an
amount that would cause the Purchaser’s net worth (as defined in accordance
with GAAP) to be less than $25,000,000. To the extent that the Purchaser does
not have sufficient cash or availability under the Subordinated Note to pay the
total 

 

4

 

Purchase Price for Receivables sold on any Business Day in full, TriMas
LLC may make or cause to be made a cash capital contribution to the Purchaser.
No sales of Receivables shall be made hereunder on and after the Purchase
Termination Date.

 

(b)           All increases to the
amount due under the Subordinated Note pursuant to Section 3.02(a)(ii) (each,
an “Advance”) shall be evidenced by a
single subordinated note, duly executed on behalf of the Purchaser, in
substantially the form of Exhibit A annexed hereto, delivered on the
Closing Date and payable to TriMas Corp., as agent for the Sellers (as amended,
supplemented or otherwise modified and in effect from time to time, the “Subordinated Note”). The Collection Agent is hereby
authorized by the Purchaser to endorse on the schedule attached to the
Subordinated Note (or a continuation of such schedule attached thereto and made
a part thereof) an appropriate notation evidencing the date and amount of each
Advance, as well as the date and amount of each payment with respect thereto;
provided, however, that the failure of any Person to make such a notation shall
not affect any obligations of the Purchaser thereunder. Any such notation shall
be conclusive and binding as to the date and amount of such Advance, or payment
of principal or interest thereon, absent manifest error.

 

(c)           The terms and
conditions of the Subordinated Note and all Advances thereunder shall be as
follows:

 

(i)            Allocation of Advances.
Advances shall be allocated among the Sellers pro rata according to the
Purchase Price due to each Seller on the date such Advances are made.

 

(ii)           Repayment of Advances.
All amounts paid by the Purchaser with respect to the Advances shall be
allocated first to the repayment of accrued interest until all such interest is
paid, and then to the outstanding principal amount of the Advances. TriMas
Corp. shall apply and distribute all payments of principal pro rata among the
Sellers according to the outstanding Advances of each Seller. Subject to the
provisions of this Agreement, the Purchaser may borrow, repay and reborrow
Advances on and after the date hereof and prior to the termination of this
Agreement, subject to the terms, provisions and limitations set forth herein.

 

(iii)          Interest. The
Subordinated Note shall bear interest from its date on the outstanding
principal balance thereof at an initial rate per annum equal to 3.50%, adjusted
on each Interest Payment Date (as defined therein) to an amount equal to the
LMIR (as defined therein). Interest on each Advance shall be computed based on
the number of days elapsed in a year of 360 days.

 

(iv)          Sole and Exclusive Remedy;
Subordination. The Purchaser shall be obligated to repay Advances to
TriMas Corp., as agent for the Sellers, only to the extent of funds available
to the Purchaser from Collections on the Receivables and, to the extent that
such payments are insufficient to pay all amounts owing to the Sellers under
the Subordinated Note, the Sellers shall not have any claim against the
Purchaser for such amounts and no further or additional recourse shall be
available against the Purchaser. The Subordinated Note shall be fully subordinated
to any rights of the Administrative 

 

5

 

Agent, on behalf of the RTA
Purchasers pursuant to the Receivables Transfer Agreement, and shall not
evidence any rights in the Receivables or related property.

 

(v)           Offsets, etc.
The Purchaser may offset any amount due and owing by the Sellers to the
Purchaser against any amount due and owing by the Purchaser to TriMas Corp., as
agent for the Sellers, under the terms of the Subordinated Note.

 

SECTION 3.03.            Reports. Each
Seller will furnish to the Collection Agent all information with respect to the
Receivables sold by such Seller under this Agreement required by the Collection
Agent in order to complete the Interim Reports and Monthly Reports delivered by
the Collection Agent pursuant to the Receivables Transfer Agreement. Each
delivery of an Interim Report or a Monthly Report by the Collection Agent shall
be deemed to be a representation and warranty by each Seller that all
information set forth in those reports with respect to the Receivables sold by
such Seller under this Agreement and Collections thereof is true and correct.

 

SECTION 3.04.            Transfer of Records.  (a) In connection with the Purchase of
Receivables hereunder, each of the Sellers hereby sells, transfers, and conveys
to the Purchaser all of its right and title to and interest in the Records
relating to all of its Receivables sold hereunder, without the need for any
further documentation in connection with any Purchase. In connection with such
transfer, each of the Sellers hereby grants to the Purchaser, the Collection
Agent and the Administrative Agent an irrevocable, non-exclusive license to use
without royalty or payment of any kind, all software used by such Seller to
account for its Receivables, to the extent necessary to administer its
Receivables, whether such software is owned by TriMas Corp. or is owned by
others and used by TriMas Corp. under license agreements with respect thereto,
provided that should the consent of any licensor to such grant of license
described herein be required, each Seller agrees that upon the request of the
Purchaser, the Collection Agent or the Administrative Agent, such Seller will
use reasonable efforts to obtain the consent of such third- party licensor. The
irrevocable license hereby granted shall terminate on the date when the Net
Investment has been reduced to zero, all other Aggregate Unpaids have been paid
in full and the Commitments have been terminated.

 

(b)           Each Seller shall
take such action as requested by the Purchaser, from time to time hereafter,
that may be necessary or appropriate to ensure that the Purchaser and its
assignees have an enforceable right to use all Records and all software used to
account for the Receivables and/or recreate such records.

 

(c)           The use of Records
by the Purchaser is subject to Section 9.14 of this Agreement.

 

SECTION 3.05.            Payments and Computations.
All amounts due to be paid or deposited by the Purchaser hereunder shall be
paid or deposited in accordance with the terms hereof on the day when due in
immediately available funds to the account designated from time to time by the
Sellers or as otherwise directed by the Sellers. In the event that any payment
owed by any Person hereunder becomes due on a day that is not a Business Day,
then such payment shall be made on the next succeeding Business Day. Except as
otherwise provided in the Transaction Documents, any amount due hereunder that
is not paid when due hereunder shall 

 

6

 

bear interest at the Alternate Base Rate as in effect from time to time
until paid in full; provided, however, that such interest rate shall not at any
time exceed the maximum rate permitted by applicable law. All computations of
interest payable hereunder shall be made on the basis of a year of 360 days for
the actual number of days (including the first, but excluding the last)
elapsed.

 

ARTICLE IV

Representations and Warranties

 

SECTION 4.01.            Sellers’ Representations
and Warranties. Each of the Sellers represents and warrants to the
Purchaser as of the Closing Date and on each Business Day on which Receivables
are sold hereunder:

 

(a)           Corporate
Existence and Power.  Such Seller is
a corporation or limited liability company duly organized, validly existing and
in good standing under the laws of the state of its organization and has all
requisite corporate or limited liability company power and all material
governmental licenses, authorizations, consents and approvals required to carry
on its business in each jurisdiction in which its business is now conducted
except where the failure to have such licenses, authorizations, consents and
approvals would not have a Material Adverse Effect. Such Seller is duly
qualified to do business in, and is in good standing in, every other
jurisdiction in which the nature of its business requires it to be so
qualified, except where the failure to be so qualified or in good standing
would not have a Material Adverse Effect.

 

(b)           Corporate and
Governmental Authorization; Contravention. The execution, delivery and
performance by such Seller of the Transaction Documents to which it is a party
are within such Seller’s corporate or limited liability company powers, have
been duly authorized by all necessary corporate or limited liability company
action, require no action by or in respect of, or filing with, any Official
Body or official thereof (except for the filing of UCC financing statements as
required by this Agreement), and do not contravene, or constitute a default
under, any provision of applicable law, rule or regulation or of the
Certificate of Incorporation or the By-Laws (or other organizational documents)
of such Seller or of any agreement, judgment, injunction, order, writ, decree
or other instrument binding upon the Seller or result in the creation or
imposition of any Adverse Claim on the assets of such Seller (except those
created by this Agreement and the Receivables Transfer Agreement).

 

(c)           Binding Effect.
Each of the Transaction Documents to which such Seller is a party will
constitute the legal, valid and binding obligation of such Seller, enforceable
in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium or other similar laws
affecting the rights of creditors and general equitable principles (whether
considered in a proceeding in equity or at law).

 

(d)           Valid and
Perfected Security Interest.  Each
Receivable originated by such Seller has been transferred to the Purchaser free
and clear of any Adverse Claim except as created hereby or by the other
Transaction Documents and Permitted Originator Encumbrances.  Without limiting the foregoing, such Seller
has delivered to the Administrative Agent (as the Purchaser’s assignee) in form
suitable for filing all financing statements or other similar 

 

7

 

instruments
or documents necessary under the UCC of all appropriate jurisdictions to
perfect the Purchaser’s ownership interest in such Receivables and the Administrative
Agent’s collateral assignment thereof. 
This Agreement creates a valid security interest in each such Receivable
and its Related Security in favor of the Purchaser, and, upon filing of the
financing statements described in the preceding sentence, together with UCC
assignments delivered hereunder, such security interest will be a first
priority perfected security interest.

 

(e)           [Intentionally
deleted].

 

(f)            [Intentionally
deleted]

 

(g)           Quality of Title;
Valid Sale.

 

(i)            Immediately preceding the sale of the Receivables and
Related Security pursuant to this Agreement, such Seller was the owner of all
of the Receivables, free and clear of all liens, encumbrances, security
interests, preferences or other security arrangements.  Upon payment of the applicable Purchase Price
for each Receivable in one or more of the manners permitted by this Agreement,
the Purchaser will have irrevocably obtained all legal and equitable title to
such Receivable and its Related Security, and the Purchaser has the legal right
to sell and encumber, each such Receivable and its Related Security.

 

(ii)           No financing statement or other instrument similar in
effect covering any portion of the Receivables or Related Security is on file
in any recording office except such as may be (A) filed in favor of a
Seller in accordance with a Contract, (B) filed in favor of the Purchaser
and its assigns in connection with this Agreement, (C) filed in favor of
the Administrative Agent in accordance with the Receivables Transfer Agreement,
(D) filed in connection with any lien arising solely as the result of any
action taken by the Administrative Agent, (E) terminated or amended prior
to the date hereof pursuant to the UCC termination statements or amendments
delivered hereunder, or (F) filed by an unauthorized third party for which
authenticated demand for termination has been made pursuant to UCC termination
statements pursuant to UCC 9-513(c)(4).

 

(h)           Accuracy of
Information. All written information heretofore furnished by such Seller to
the Purchaser, the Collection Agent and the Administrative Agent for purposes
of or in connection with this Agreement, any other Transaction Document, or any
transaction contemplated hereby or thereby is, and all such information
hereafter furnished by such Seller to the Purchaser, the Collection Agent, the
Administrative Agent, and the RTA Purchasers will be, true and accurate in
every material respect, on the date such information is stated or certified.

 

(i)            Tax Status.
Such Seller has filed all material tax returns (Federal, state and local)
required to be filed and has paid or made adequate provision for the payment of
all material taxes, assessments and other similar governmental charges other
than taxes contested in good faith and for which adequate reserves have been
established in accordance with GAAP and taxes which are not yet due and
payable.

 

(j)            Litigation.
Except as set forth in TriMas  Corp.’s
10-Q for the period ended September 30, 2009, there are no actions, suits
or proceedings pending, or to the 

 

8

 

knowledge
of such Seller threatened, against or affecting such Seller or any Affiliate of
such Seller or their respective properties, in or before any court, arbitrator
or other Official Body, which could reasonably be expected to, individually or
in the aggregate, have a Material Adverse Effect.

 

(k)            Place of
Business. The state and form of organization, principal place of business
and chief executive office of such Seller are located at the address specified
on Schedule I, and the offices where such Seller keeps all its Records, are
located at the address specified on Schedule I, or such other locations
notified to the Purchaser in accordance with this Agreement in jurisdictions
where all action required by the terms of this Agreement has been taken and
completed.  As of the date hereof, such
Seller is a “registered organization” (within the meaning of Section 9-102
of the UCC as in effect in its jurisdiction of organization).

 

(l)            Reliance on
Separate Legal Identity.  Such Seller
is aware that Administrative Agent is entering into the Transaction Documents
in reliance upon the Purchaser’s identity as a legal entity separate from such
Seller.

 

(m)          Solvency. Such
Seller is not insolvent, does not have unreasonably small capital with which to
carry on its business, is able to pay its debts generally as they become due
and payable, and its liabilities do not exceed its assets. TriMas Corp. is, and
TriMas Corp. and its Subsidiaries are, on a consolidated basis, solvent.

 

(n)           Tradenames, Etc.
As of the date hereof: (i) Such Seller has only the subsidiaries and
divisions listed on Exhibit I to the Receivables Transfer Agreement; and (ii) such
Seller has, within the last five years, operated only under the tradenames
identified on Exhibit I to the Receivables Transfer Agreement, and, within
the last five (5) years, has not changed its name, merged with or into or
consolidated with any other corporation or been the subject of any proceeding
under Title 11, United States Code (Bankruptcy), except as disclosed in Exhibit I
to the Receivables Transfer Agreement.

 

(o)           Nature of
Receivables. Each Receivable included in the calculation of the Net
Receivables Balance in fact satisfies at such time the definition of “Eligible
Receivable” and is an “eligible asset” as defined in Rule 3a-7 under the
Investment Company Act of 1940, as amended, and is not a Defaulted Receivable.

 

(p)           Credit and
Collection Policy. With respect to the Receivables originated by such
Seller, such Seller has complied in all material respects with its applicable
Credit and Collection Policy.

 

(q)           Collections and
Sub-Servicing. Since the Closing Date, there has been no material adverse
change in the ability of  such Seller to
sub-service and collect the Receivables.

 

(r)            Binding Effect
of Receivables and Contract. Each Receivable and related Contract
constitutes a legal, valid and binding obligation of the Obligor, enforceable
against the Obligor, subject to the effect of bankruptcy, insolvency, reorganization
or similar laws affecting creditors’ rights generally and general equitable
principles (whether considered in a proceeding at law or in equity).

 

9

 

(s)           Not an Investment
Company. Such Seller is not, nor is it controlled by, an “investment
company” within the meaning of the Investment Company Act of 1940, as amended,
and it is exempt from all provisions of such Act.

 

(t)            ERISA. Such
Seller and its ERISA Affiliates and any “employee benefit plan” (as such term
is defined in Section 3(3) of ERISA) established by such Seller,
including any such plan that is subject to Section 412 of the Internal
Revenue Code or Title IV of ERISA, are in compliance with ERISA, except for any
noncompliance which would not reasonably be expected to have a Material Adverse
Effect, and no lien exists in favor of the Pension Benefit Guaranty Corporation
on any of the Receivables.

 

(u)           Lock-Box Accounts.
The names and addresses of all the Lock-Box Banks, together with the account
numbers of the Lock-Box Accounts at such Lock-Box Banks, are specified in Exhibit B
to the Receivables Transfer Agreement. All Obligors have been instructed to pay
all Collections to a Lock-Box Account.

 

(v)           Bulk Sales.
No transaction contemplated by this Agreement requires compliance with any bulk
sales act or similar law.

 

(w)          Reasonably
Equivalent Value. The Purchase Price constitutes reasonably equivalent
value in consideration for the transfer by each Seller to the Purchaser of
Receivables from such Seller pursuant to this Agreement and no such transfer
has been made for or on account of an antecedent debt owed by such Seller to
the Purchaser, and no such transfer is or may be voidable or subject to avoidance
under any section of the Bankruptcy Code.

 

(x)            Regulations T, U
and X. No proceeds of the sales of Receivables under this Agreement will be
used by the Seller to acquire any security in any transaction which violates
Regulation T, U or X of the Federal Reserve Board.  Such Seller is not engaged and will not
engage, principally or as one of its important activities, in the business of
purchasing or carrying margin stock (within the meaning of Regulation U issued
by the Federal Reserve Board), or extending credit for the purpose of
purchasing or carrying margin stock.

 

(y)           OFAC.  Neither such Seller nor any of its
Subsidiaries or Affiliates (a) is a Sanctioned Person, (b) does
business in a Sanctioned Country or with a Sanctioned Person in violation of
the economic sanctions of the United States administered by OFAC or (c) does
business in such country or with any such agency, organization or person, in
violation of the economic sanctions of the United States administered by OFAC.

 

SECTION 4.02.            Reaffirmation of Representations and
Warranties by the Sellers; Notice of Breach.  On the Closing Date and on each Business Day
on which Receivables are sold hereunder, the Sellers, by accepting the proceeds
of such sale, shall be deemed to have certified that all representations and
warranties described in Section 4.01 are true and correct in all material
respects on and as of such day as though made on and as of such day except to
the extent such representations and warranties expressly relate to an earlier
date. The representations and warranties set forth in Section 4.01 shall
survive (i) the conveyance of the Receivables to the Purchaser, (ii) the
termination of the rights and obligations of the Purchaser and the Sellers
under this Agreement and (iii) the termination of the rights and
obligations of the 

 

10

 

Transferor, the Guarantor and the Sellers under the Receivables
Transfer Agreement. Upon the coming to the knowledge of any Responsible Officer
of the Purchaser or any of the Sellers of a breach of any of the foregoing
representations and warranties, the party with knowledge of such breach shall
give prompt written notice to the other within three (3) Business Days of
such discovery.

 

ARTICLE V

Covenants of the Sellers

 

SECTION 5.01.            Covenants of the Sellers. Each of the
Sellers hereby covenants and agrees with the Purchaser that, unless otherwise
specified herein, for so long as this Agreement is in effect, and until all
Receivables which have been sold to the Purchaser pursuant hereto, shall have
been paid in full or written-off as uncollectible, and all amounts owed by the
Sellers pursuant to this Agreement have been paid in full, unless the
Purchaser, the Administrative Agent and the Required Purchasers otherwise
consent in writing, as follows:

 

(a)           Conduct of
Business. Such Seller will, and will cause each of its controlled
Affiliates to, carry on and conduct its business in substantially the same
manner and in substantially the same fields of enterprise as it is presently
conducted and businesses reasonably related thereof and do all things necessary
to remain duly organized, validly existing and in good standing in its
jurisdiction of organization and will maintain all requisite authority to
conduct its business in each jurisdiction in which its business is conducted
except where the failure to be so qualified or in good standing would not have
a Material Adverse Effect.

 

(b)           Compliance with
Laws. Such Seller will, and will cause each of its Affiliates to, comply in
all material respects with all laws, rules, regulations, orders, writs,
judgments, injunctions, decrees or awards to which it may be subject, except to
the extent that the failure to comply with such laws, rules, regulations,
orders, writs, judgments, injunctions, decrees or awards would not materially
adversely affect the ability of such Seller to perform its obligations under
this Agreement.

 

(c)           Furnishing of
Information and Inspection of Records. Such Seller will furnish to the
Purchaser from time to time such information with respect to itself or the
Receivables as the Purchaser may reasonably request, including, without
limitation, listings identifying the Obligor and the Outstanding Balance for
each Receivable. Such Seller will at any time and from time to time during
regular business hours, upon reasonable notice (it being agreed that one
Business Day’s notice shall be reasonable when a Termination Event or Potential
Termination Event has taken place and is continuing), and at the Purchaser’s
expense, permit the Purchaser, its agents or representatives or such other
individuals as the Purchaser may reasonably request, (i) to examine and
make copies of and abstracts from all Records and (ii) to visit the
offices and properties of such Seller for the purpose of examining such
Records, and to discuss matters relating to Receivables or such Seller’s
performance hereunder with any of the officers or employees of such Seller
having knowledge of such matters.

 

(d)           Keeping of
Records and Books of Account. Such Seller will maintain a system of
accounting established and administered in accordance with generally accepted 

 

11

 

accounting
principles, consistently applied, and will maintain and implement administrative
and operating procedures (including, without limitation, an ability to recreate
records evidencing Receivables in the event of the destruction of the originals
thereof), and keep and maintain, or obtain, as and when required, all documents,
books, records and other information reasonably necessary or advisable for the
collection of all Receivables (including, without limitation, records adequate
to permit the daily identification of each Receivable and all Collections of
and adjustments to each existing Receivable). Such Seller will keep such
records (and, to the extent that any of the foregoing constitute instruments,
chattel paper or negotiable documents, all originals thereof), at an address
listed on Schedule I hereto.  Such Seller
will give the Purchaser prompt notice of any change in the administrative and
operating procedures referred to in the previous sentence to the extent such
change could reasonably be expected to have a Material Adverse Effect.

 

(e)           Performance and
Compliance with Receivables and Contracts. Such Seller at its expense will
timely and fully perform and comply with all material provisions, covenants and
other promises required to be observed by it under the Contracts related to the
Receivables.

 

(f)            Credit and
Collection Policies. Such Seller will comply in all material respects with
the Credit and Collection Policy in regard to each Receivable and the related
Contract.

 

(g)           Collections.
Such Seller shall instruct all Obligors to cause all Collections to be
deposited directly to a Lock-Box Account.

 

(h)           Collections
Received. As of and subsequent to the Initial Incremental Transfer Date,
such Seller shall hold in trust for the Purchaser, and deposit immediately (and
in any event within one Business Day) after receipt thereof to a Lock-Box
Account all Collections received from time to time by such Seller. Such Seller
shall prevent the deposit of any funds other than Collections into any of the
Lock-Box Accounts and, to the extent that any such funds are nevertheless deposited
into any of such Lock-Box Accounts, promptly (and in any event within one
Business Day) identify any such funds to the Collection Agent for segregation
and remittance to the owner thereof. If such Seller or any of its agents or
representatives or Affiliates shall at any time receive any cash, checks or
other instruments constituting Collections, such recipient shall segregate such
payments and hold such payments in trust for the Purchaser and shall, promptly
upon receipt (and in any event within one Business Day following receipt),
remit all such collections, duly endorsed or with duly executed instruments of
transfer, to a Lock-Box Account.

 

(i)            Sale Treatment.
Such Seller agrees to treat each conveyance hereunder for all purposes
(including, without limitation, tax and financial accounting purposes) as a
sale and, to the extent any such reporting is required, shall report the
transactions contemplated by this Agreement on all relevant books, records, tax
returns, financial statements and other applicable documents as a sale of the
Receivables to the Purchaser.

 

(j)            No Sales, Liens,
Etc. Except as otherwise provided herein, such Seller will not sell, assign
(by operation of law or otherwise) or otherwise dispose of, or create or suffer
to exist any Adverse Claim upon (except for the filing of any financing
statement as required under 

 

12

 

this
Agreement) or with respect to, any Receivable, Related Security or Collections
or upon or with respect to any Lock-Box Account to which any Collections of any
Receivable are sent, or, in each case, assign any right to receive income in
respect thereof, other than Permitted Originator Encumbrances.

 

(k)           No Extension or
Amendment of Receivables. Such Seller will not extend, amend or otherwise
modify the terms of any Receivable, or amend, modify or waive any term or
condition of any Contract related thereto in a manner which adversely affects
the amount or collectability of any Receivable, except as provided in Section 2.02
hereof or in the Receivables Transfer Agreement, without the prior written
consent of the Purchaser.

 

(l)             No Change in
Credit and Collection Policy. Except as provided in the Receivables
Transfer Agreement or as approved by the Administrative Agent acting at the
direction of the Required Purchasers, such Seller will not make any  change in the Credit and Collection Policy,
which change might impair such Seller’s ability to collect the Receivables,
considered as a whole, in any material respect.   Such Seller agrees to provide to the
Purchaser and Administrative Agent not less than 30 days’ prior written notice
of any material change in such Seller’s Credit and Collection Policy (together
with a copy of such proposed change).

 

(m)          No Mergers, Etc.
Such Seller will not (i) consolidate or merge with or into any other
Person other than another Seller, or (ii) sell, lease or transfer all or
substantially all of its assets to any other Person other than another Seller;
provided that such Seller may merge with another Person if such Seller (or
another Seller) is the surviving entity and such merger or consolidation does
not cause a Termination Event or Potential Termination Event under Section 7.01(h) of
the Receivables Transfer Agreement.

 

(n)           Change in Payment
Instructions to Obligors; Deposits to Lock-Box Accounts. Such Seller will
not add or terminate, or make any change to, any Lock-Box Account, except in
accordance with the Receivables Transfer Agreement. Such Seller will not
deposit or otherwise credit, or cause or permit to be so deposited or credited,
to any Lock- Box Account, cash or cash proceeds other than Collections of
Receivables.

 

(o)           Change of Name,
Etc. As of and subsequent to the Initial Incremental Transfer Date, such
Seller shall not change its name, jurisdiction of organization, form of
organization, taxpayer identification number or state organization number,
unless at least ten (10) days prior to the effective date of any such
change such Seller delivers to the Purchaser and the Administrative Agent (i) financing
statements under the Relevant UCC, executed by such Seller, necessary to
reflect such change and to continue the perfection of the Purchaser’s interest
in the Receivables and (ii) new or revised Lock-Box Account Agreements
which reflect such change and enable the Administrative Agent, on behalf of the
RTA Purchasers, to exercise its rights under the Transaction Documents.

 

(p)           Separate
Existence. Such Seller shall:

 

(i)            Maintain its deposit account or
accounts, separate from those of the Purchaser and use its commercially
reasonable efforts to ensure that its funds will not 

 

13

 

be diverted to the Purchaser
and that its funds and assets will not be commingled with those of the
Purchaser;

 

(ii)           To the extent that it shares any
officers or other employees with the Purchaser, fairly allocate between it and
the Purchaser the salaries of and the expenses related to providing benefits to
such officers and other employees, and such Seller and the Purchaser shall bear
their respective fair share of the salary and benefit costs associated with all
such common officers and employees;

 

(iii)          To the extent that it jointly
contracts with the Purchaser to do business with vendors or service providers
or to share overhead expenses, fairly allocate between it and the Purchaser the
costs incurred in so doing, and it and the Purchaser shall bear their fair
shares of such costs; and to the extent that it contracts or does business with
vendors or service providers where the goods and services provided are
partially for the benefit of the Purchaser, the costs incurred in so doing
shall be fairly allocated between it and the Purchaser in proportion to the
benefit of the goods or services each is provided, and such Seller and the
Purchaser shall bear their fair shares of such costs;

 

(iv)          Enter into all material transactions
with the Purchaser, whether currently existing or hereafter entered into, only
on an arm’s length basis, it being understood and agreed that the transactions
contemplated in the Transaction Documents meet the requirements of this clause
(iv);

 

(v)           Maintain office space separate from
the office space of the Purchaser (but which may be located at the same address
as the Purchaser). To the extent that it and the Purchaser have offices in the
same location, there shall be a fair and appropriate allocation of overhead
costs between them, and each shall bear its fair share of such expenses subject
to a written sublease agreement;

 

(vi)          Conduct its affairs strictly in
accordance with its certificate of incorporation and observe all necessary,
appropriate and customary corporate formalities, including, but not limited to,
holding all regular and special stockholders’ and directors’ meetings
appropriate to authorize all corporate action, keeping separate and accurate
minutes of its meetings, passing all resolutions or consents necessary to
authorize actions taken or to be taken, and maintaining accurate and separate
books, records and accounts, including, but not limited to, payroll and
intercompany transaction accounts;

 

(vii)         Not assume or guarantee any of the
liabilities of the Purchaser;

 

(viii)        Take, or refrain from taking, as the
case may be, all other actions that are necessary to be taken or not to be
taken in order (x) to ensure that the assumptions and factual recitations
set forth in the Specified Bankruptcy Opinion Provisions remain true and
correct with respect to it (and, to the extent within its control, to ensure
that the assumptions and factual recitations set forth in the Specified
Bankruptcy Opinion Provisions remain true and correct with respect to the
Purchaser) and (y) to comply with those procedures described in such
provisions that are applicable to it;

 

14

 

(ix)           Maintain its books of account,
financial reports and corporate records of such Seller separately from those of
TriMas Corp. and each other Affiliate of such Seller;

 

(x)            Cause its accounting records and the
published financial statements to clearly show that, for accounting purposes,
the Receivables and Related Security have been sold to the Purchaser;

 

(xi)           Maintain its assets in a manner that
facilitates their identification and segregation from those of TriMas Corp.,
the other Sellers, the Purchaser and other Affiliates of TriMas Corp.;

 

(xii)          Not, directly or indirectly, name the
Purchaser or enter into any agreement to name the Purchaser a direct or
contingent beneficiary or loss payee or any insurance policy covering the
property of such Seller; and

 

(xiii)         Not be, nor will hold itself out to be,
responsible for the debts of the Purchaser or the decisions or actions in
respect of the daily business and affairs of the Purchaser and immediately
correct any known misrepresentation with respect to the foregoing. Such Seller,
the Purchaser and their Affiliates will not operate or purport to operate as an
integrated single economic unit with respect to each other or in their dealing
with any other entity.

 

(q)           Indemnification.
Such Seller agrees to indemnify, defend and hold the Purchaser harmless from
and against any and all losses, liabilities, damages, judgments, claims,
deficiencies, costs, disbursements and expenses including, without limitation,
interest, penalties, reasonable attorneys’ fees and amounts paid in settlement)
to which the Purchaser may become subject insofar as such losses, liabilities,
damages, judgments, claims, deficiencies, costs, disbursements or expenses
arise out of or are based upon a breach by such Seller of its representations,
warranties and covenants contained herein, or any information certified in any
schedule or certificate delivered by any of the Sellers hereunder or in
connection with the Transaction Documents, being untrue in any material respect
at any time; provided that in no event shall this Section 5.01(q) be
construed to include uncollectibility of any Receivable for credit-related
reasons pertaining to the related Obligor. The obligations of such Seller under
this Section 5.01(q) shall be considered to have been relied upon by
the Purchaser and the Administrative Agent, on behalf of the RTA Purchasers,
and shall survive the execution, delivery, performance and termination of this
Agreement for a period of three (3) years following the Purchase
Termination Date, regardless of any investigation made by the Purchaser or the
Administrative Agent or on behalf of either of them.

 

It is expressly understood
and agreed by the parties (i) that the foregoing indemnification is not
intended to, and shall not constitute a guarantee of the collectability or
payment of the Receivables and (ii) that nothing in this Section 5.01(q) shall
constitute recourse (except as otherwise specifically provided in this
Agreement) for (a) uncollectible Receivables or other obligations
hereunder or related costs or expenses resulting from such indemnified Person’s
gross negligence or willful misconduct, (b) any franchise taxes owed by
such indemnified Person or (c) any other taxes imposed against such
indemnified Person on account of its ownership of 

 

15

 

the
Receivables to the extent such taxes are measured by or against the gross or
net income or receipts of such Person.

 

(r)            ERISA. (i) Such
Seller will not (A) engage or permit any of its ERISA Affiliates to engage
in any prohibited transaction (as defined in Section 4975 of the Code and Section 406
of ERISA) for which an exemption is not available or has not previously been
obtained from the U.S. Department of Labor; (B) permit to exist any
accumulated funding deficiency (as defined in Section 302(a) of ERISA
and Section 412(a) of the Code) or funding deficiency with respect to
any Benefit Plan other than a Multiemployer Plan; (c) fail to make any
payments to any Multiemployer Plan that such Seller or any ERISA Affiliate of
such Seller is required to make under the agreement relating to such
Multiemployer Plan or any law pertaining thereto; (D) terminate any
Benefit Plan so as to result in any liability to the Pension Benefit Guaranty
Corporation; or (E) permit to exist any occurrence of any reportable event
described in Title IV of ERISA which represents a material risk of a liability
to such Seller, or any ERISA Affiliate of such Seller under ERISA or the Code,
if such prohibited transactions, accumulated funding deficiencies, failure to
make payments, terminations and reportable events occurring within any fiscal year
of such Seller, in the aggregate, involve a payment of money or an incurrence
of liability by such Seller or any ERISA Affiliate of such Seller, in an amount
which would reasonably be expected to have a Material Adverse Effect and (ii) such
Seller shall promptly give the Purchaser written notice upon becoming aware
that such Seller is not in compliance with ERISA if such non compliance would
reasonably be expected to have a Material Adverse Effect or that any ERISA lien
on any of the Receivables exists and, promptly after the receipt or filing
thereof, shall provide the Purchaser with copies of all reports and notices
with respect to any reportable event (as defined in Article IV of ERISA)
which such Seller or any ERISA Affiliate thereof files under ERISA with the
Internal Revenue Service, the Pension Benefit Guaranty Corporation or the U.S.
Department of Labor or which such Seller or any ERISA Affiliate thereof
receives from the Internal Revenue Service, the Pension Benefit Guaranty
Corporation or the U.S. Department of Labor.

 

(s)           Amendments to
Credit Agreement. Such Seller agrees not to amend the Credit Agreement
without the Purchaser’s consent.

 

(t)            Proceedings.  Such Seller agrees to furnish to the
Purchaser and the Administrative Agent, as the Purchaser’s assignee, prompt
notice of the filing or commencement of any action, suit or proceeding by or
before any arbitrator or Official Body against or affecting such Seller which,
if adversely determined, could reasonably be expected to have a Material Adverse
Effect.

 

(u)           Taxes.  Such Seller will file or cause to be filed
reports required by law to be filed by it and will promptly pay or cause to be
paid all taxes and governmental charges at any time owing, except any such
taxes which are not yet delinquent or are being diligently contested in good
faith by appropriate proceedings and for which adequate reserves in accordance
with GAAP shall have been set aside on its books or to the extent that the
failure to do so could not reasonably be expected to result in a Material
Adverse Effect.

 

16

 

ARTICLE VI

Dilutions

 

SECTION 6.01.            Dilutions, Etc. Each Seller
agrees that if on any Business Day the Outstanding Balance of a Receivable, an
interest in which has been sold by such Seller hereunder, is either (x) reduced
as a result of defective, rejected or returned goods or other dilution factor,
any billing adjustment or other adjustment, or (y) reduced or canceled as
a result of (i) a setoff or dispute in respect of any claim by any Person
(whether such claim arises out of the same or a related transaction or an
unrelated transaction), or (ii) any action by any Federal or state taxing
authority or as a result of the payment by any Obligor of any portion of a
Receivable constituting a tax or governmental fee or charge to any Person other
than the Purchaser, then such Seller shall be deemed to have received on such
day a collection of such Receivable in the amount of such reduction,
cancelation or payment made by the Obligor and shall on such day pay to the
Purchaser an amount equal to such reduction or cancelation (to the extent not
netted against the Purchase Price on such day pursuant to Section 3.01
hereof) on each Business Day of the calendar month in which such reduction or
cancelation occurred.

 

ARTICLE VII

Conditions Precedent

 

SECTION 7.01.            Conditions Precedent. The
obligations of the Purchaser to purchase the Receivables on the Closing Date
and on any Business Day on which Receivables are sold hereunder shall be subject
to the satisfaction of the following conditions:

 

(a)           All representations
and warranties of the Sellers contained in this Agreement shall be true and
correct on the Closing Date and on the applicable Business Day of sale, with
the same effect as though such representations and warranties had been made on
such date;

 

(b)           All information
concerning the Receivables provided to the Purchaser shall be true and correct
in all material respects as of the Closing Date, in the case of any Receivables
sold on the Closing Date, or the date such Receivables are created, in the case
of any Receivables created after the Closing Date and sold by the Sellers to
the Purchaser on a subsequent Business Day;

 

(c)           Each of the Sellers
shall have substantially performed all other obligations required to be
performed by the provisions of this Agreement and the other Transaction
Documents to which it is a party;

 

(d)           The Sellers shall
have either filed or caused to be filed the financing statement(s) required
to be filed pursuant to Section 2.01(b);

 

(e)           On the Closing Date,
all corporate and legal proceedings, and all instruments in connection with the
transactions contemplated by this Agreement and the other Transaction Documents
shall be satisfactory in form and substance to the Purchaser, and the Purchaser
shall have received from the Sellers copies of all documents (including,
without 

 

17

 

limitation,
records of corporate proceedings) relevant to the transactions herein contemplated
as the Purchaser may reasonably have requested;

 

(f)            On the Closing
Date, the Sellers shall deliver to the Purchaser and the Administrative Agent a
statement of the aggregate Outstanding Balance of the Receivables in existence
as of the close of business on the second Business Day prior to the Closing
Date; and

 

(g)            The Purchase
Termination Date shall not have occurred.

 

SECTION 7.02.            Conditions Precedent to the Addition
of a Seller. The obligation of the Purchaser to purchase
Receivables and Related Security hereunder from a Subsidiary of TriMas Corp.
requested to be an additional Seller pursuant to Section 9.13 is subject
to the conditions precedent that the Purchaser shall have received the
following items on or before the date designated for the addition of such
Seller (the “Seller Addition Date”) and in
form and substance satisfactory to the Purchaser:

 

(a)           Additional Seller
Supplement. An Additional Seller Supplement substantially in the form of Exhibit B
attached hereto (with a copy for the Administrative Agent and each RTA
Purchaser) duly executed and delivered by such Seller;

 

(b)           Secretary’s
Certificate. A certificate of the Secretary or an Assistant Secretary of
such Seller, dated the related Seller Addition Date, and certifying (i) that
attached thereto is a true and complete copy of the by-laws (or similar
organizational documents) of such Seller, as in effect on the Seller Addition
Date and at all times since a date prior to the date of the resolutions
described in clause (ii) below, (ii) that attached thereto is a true
and complete copy of the resolutions, in form and substance reasonably
satisfactory to the Purchaser, of the Board of Directors (or other governing
body or Person) of such Seller or committees thereof authorizing the execution,
delivery and performance of this Agreement and the other Transaction Documents
to which it is a party and the transactions contemplated hereby and thereby,
and that such resolutions have not been amended, modified, revoked or rescinded
and are in full force and effect, (iii) that the articles of incorporation
(or similar organizational documents) of such Seller have not been amended
since the date of the last amendment thereto shown on the certificate of good
standing (or its equivalent) furnished pursuant to subsection (e) below
and (iv) as to the incumbency and specimen signature of each officer
executing the Additional Seller Supplement and any other Transaction Documents
or any other document delivered in connection therewith on behalf of such Seller
(on which certificates the Purchaser may conclusively rely until such time as
the Purchaser shall receive from such Seller a revised certificate with respect
to such Seller meeting the requirements of this subsection (b));

 

(c)           Officer’s
Certificate. A Certificate of a Responsible Officer of TriMas Corp., dated
the related Seller Addition Date, and certifying such Seller is in the same or
a related line of business as the existing Sellers as of the related Seller
Addition Date;

 

(d)           Corporate
Documents. The organizational documents, including all amendments thereto,
of such Seller, certified as of a recent date by the Secretary of State or
other appropriate authority of the state of incorporation, as the case may be;

 

18

 

(e)          Good Standing
Certificates. Certificates of compliance, of status or of good standing,
dated as of a recent date, from the Secretary of State or other appropriate
authority of such jurisdiction, with respect to such Seller in each State where
the ownership, lease or operation of property or the conduct of business
requires it to qualify as a foreign corporation, except where the failure to so
qualify would not have a Material Adverse Effect;

 

(f)            Consents,
Licenses, Approvals, Etc. A certificate dated the related Seller Addition
Date of a Responsible Officer of such Seller either (i) attaching copies
of all consents (including, without limitation, consents under loan agreements
and indentures to which any Seller or its Affiliates are parties), licenses and
approvals required in connection with the execution, delivery and performance
by such Seller of the Additional Seller Supplement and the validity and
enforceability of the Additional Seller Supplement against such Seller, and
such consents, licenses and approvals shall be in full force and effect or (ii) stating
that no such consents, licenses and approvals are so required;

 

(g)           No Litigation.
Confirmation that there is no pending or, to its knowledge after due inquiry,
threatened action or proceeding affecting such Seller or any of its
Subsidiaries before any Official Body that could reasonably be expected to have
a Material Adverse Effect;

 

(h)           Lock-Boxes. A
Lock-Box Account with respect to Receivables to be sold by such Seller shall
have been established in the name of the Purchaser, each invoice issued to an
Obligor on and after the related Seller Addition Date shall indicate that
payments in respect of its Receivable shall be made by such Obligor to a
Lock-Box Account or by wire transfer or other electronic payment to a Lock-Box
Account or the Collection Account and the Collection Agent shall have delivered
with respect to each Lock-Box Account a Lock-Box Agreement signed by the
Purchaser, the Administrative Agent and the applicable Lock-Box Bank;

 

(i)            UCC Certificate;
UCC Financing Statements. Executed copies of such proper financing
statements (or other similar instruments), filed and recorded at such Seller’s
expense prior to the related Seller Addition Date, naming such Seller as the seller
and the Purchaser as the purchaser of the Receivables and the Related Security,
in proper form for filing in each jurisdiction in which the Purchaser (or any
of its assignees) deems it necessary or desirable to perfect the Purchaser’s
ownership interest in all Receivables and Related Security under the UCC or any
comparable law of such jurisdiction;

 

(j)            UCC Searches.
Written search reports, listing all effective financing statements (or other
similar instruments) that name such Seller as debtor or assignor and that are
filed in the jurisdictions in which filings were made pursuant to subsection (i) above
and in any other jurisdictions that the Purchaser (or any of its assignees)
determines are necessary or appropriate, together with copies of such financing
statements (none of which, except for those described in subsection (i) above,
shall cover any Receivables or Related Security), and tax and judgment lien
searches showing no liens that are not permitted by the Transaction Documents;

 

(k)           List of Obligors.
A microfiche, typed or printed list or other tangible evidence reasonably
acceptable to the Purchaser showing, as of a date acceptable to the Purchaser
prior to the related Seller Addition Date, the Obligors whose Receivables are
to be 

 

19

 

transferred
to the Purchaser and the balance of the Receivables with respect to each such
Obligor as of such date;

 

(l)                                     Back-up
Servicing Arrangements. Evidence that such Seller maintains
disaster recovery systems or back-up computer or other information management
systems that, in the Purchaser’s and the Administrative Agent’s reasonable
judgment, are sufficient to protect such Seller’s business against material
interruption or loss or destruction of its primary computer and information
management systems;

 

(m)                               Systems. Evidence,
reasonably satisfactory to the Purchaser and the Administrative Agent, that
such additional Seller’s systems, procedures and record keeping relating to the
Receivables remain in all material respects sufficient and satisfactory in
order to permit the purchase and administration of the Receivables in
accordance with the terms and intent of this Agreement;

 

(n)                                 Opinions. The Purchaser
shall have received (i) legal opinions on behalf of such Seller as to
general corporate matters (including an opinion as to the perfection and
priority of the Purchaser’s interest in the Receivables) and (ii) a
certificate from a Responsible Officer of such Seller stating that the
Specified Bankruptcy Opinion Provisions are also true and correct as to such
Seller as of the Seller Addition Date, all in form and substance reasonably
satisfactory to the Administrative Agent and the RTA Purchasers; and

 

(o)                                 Other. Such other
approvals or documents as the Purchaser (or any of its assignees) may
reasonably request from such additional Seller, including, but not limited to,
a pro-forma Deposit Report and Settlement Statement incorporating the
receivables data for at least the most recent fourteen (14) months of such
additional Seller.

 

ARTICLE
VIII

Term and Termination

 

SECTION 8.01.                                   Term. This
Agreement shall commence as of the first day on which all of the conditions
precedent as set out in Section 7.01 have been satisfied and shall
continue in full force and effect until the earlier of (i) the date
designated by the Purchaser or the Sellers as the Purchase Termination Date at
any time following ten (10) days’ written notice to the other (with a copy
thereof to the Administrative Agent), (ii) the date on which the
Administrative Agent, on behalf of the RTA Purchasers, declares a Termination
Event pursuant to the Receivables Transfer Agreement, (iii) upon the
occurrence of an Event of Bankruptcy with respect to either the Purchaser or
any of the Sellers or (iv) the date on which either the Purchaser or any
of the Sellers becomes unable for any reason to purchase or repurchase,
respectively, any Receivable in accordance with the provisions of this
Agreement or defaults on its obligations hereunder, which default continues
unremedied for more than ten (10) days after written notice to the
defaulting party (any such date being a “Purchase Termination Date”);
provided, however, that the termination of this Agreement pursuant to this Section 8.01
hereof shall not discharge any Person from any obligations incurred prior to
such termination or any obligations under Articles V or VI with respect to
Receivables arising prior to such termination, including, 

 

20

 

without limitation, any obligations to make any payments with respect
to any Receivable sold prior to such termination.

 

SECTION 8.02.                                   Effect
of Termination. Following the termination of this Agreement
pursuant to Section 8.01, the Sellers shall not sell, and the Purchaser
shall not purchase, any Receivables. No termination, rejection or failure to
assume the executory obligations of this Agreement in any Event of Bankruptcy
with respect to the Sellers or the Purchaser shall be deemed to impair or
affect the obligations pertaining to any executed sale or executed obligations,
including, without limitation, pre-termination breaches of representations and
warranties by the Sellers or the Purchaser. Without limiting the foregoing,
prior to termination, the failure of the Sellers to deliver computer records of
Receivables or any reports regarding the Receivables shall not render such
transfer or obligation executory, nor shall the continued duties of the parties
pursuant to this Agreement render an executed sale executory.

 

SECTION 8.03.                                   Termination
of Sellers and Seller Divisions. (a) TriMas Corp.
hereby covenants and agrees with the Purchaser that TriMas Corp. shall not
permit any Seller at any time to cease to be a wholly-owned Subsidiary of
TriMas Corp., except as provided in the following paragraph (b).

 

(b)                                 If TriMas Corp.
wishes to permit any Seller to cease to be a wholly-owned Subsidiary of TriMas
Corp. or terminate the sales of Receivables hereunder by any Seller or Seller
Division, then TriMas Corp. shall submit a request (a “Seller
Termination Request”) to such effect in writing to the Purchaser,
which request shall be accompanied by a certificate prepared by a Responsible
Officer of the Collection Agent indicating the Purchased Receivables Percentage
applicable to such Seller (or Seller Division) as of the date of submission of
such request (the “Seller Termination
Request Date”). Subject to the terms and provisions hereof and of
the Receivables Transfer Agreement, the relevant Seller (or Seller Division)
shall be terminated as a Seller (or Seller Division) hereunder immediately upon
the earlier of the date set forth in the Seller Termination Request or the
consummation of the transaction in connection with which such Seller ceases to
be a wholly-owned Subsidiary of TriMas Corp. or in the case of a Seller
Division upon the satisfaction of any applicable conditions in the Receivables
Transfer Agreement. From and after the date any such Seller (or Seller
Division) is terminated as a Seller (or Seller Division) pursuant to this
subsection, the Seller (or Seller Division) shall cease selling, and the
Purchaser shall cease buying, Receivables and Related Security from such Seller
(or Seller Division) and a Purchase Termination Date shall be deemed to have
occurred, but only with respect to such Seller (or Seller Division).

 

(c)                                  A terminated
Seller (or Seller Division) shall have no further obligation under any
Transaction Document, other than pursuant to Sections 5.01(q) and 6.01 of
this Agreement, with respect to Receivables previously sold by it to the
Purchaser.

 

ARTICLE
IX

Miscellaneous Provisions

 

SECTION 9.01.                                   Amendments,
Etc. This Agreement and the rights and obligations of the parties
hereunder may not be amended, supplemented, waived or otherwise modified and 

 

21

 

no consent to any such amendment, supplement, waiver or modification
may be given except in an instrument in writing signed by the Purchaser and the
Sellers and consented to in writing by the Administrative Agent (with the
consent of the Required Purchasers).

 

SECTION 9.02.                                   Governing
Law; Submission to Jurisdiction. (a) This Agreement
shall be governed by and construed in accordance with the laws of the State of
New York except to the extent that the validity or perfection of the Purchaser’s
ownership of or security interest in the Receivables, or remedies hereunder in
respect thereof, are governed by the laws of a jurisdiction other than the
State of New York. (b) The parties hereto hereby submit to the
nonexclusive jurisdiction of the United States District Court for the Southern
District of New York and of any New York state court sitting in The City of New
York for purposes of all legal proceedings arising out of or relating to this
agreement or the transactions contemplated hereby. Each party hereto hereby irrevocably
waives, to the fullest extent it may effectively do so, any objection which it
may now or hereafter have to the laying of the venue of any such proceeding
brought in such a court and any claim that any such proceeding brought in such
a court has been brought in an inconvenient forum. Nothing in this Section 9.02
shall affect the right of the Purchaser to bring any other action or proceeding
against any of the Sellers or its property in the courts of other
jurisdictions.

 

SECTION 9.03.                                   Notices.  (a) All demands, notices and
communications hereunder shall be in writing and shall be deemed to have been
duly given if personally delivered at or mailed by registered mail, return
receipt requested, or telecopied to:

 

(a)                                  in the case of
the Purchaser:

 

TSPC, Inc.

2520
Saint Rose Parkway, Suite 212

Henderson,
NV  89074-7787

Attention:
Michael DeWinter

Telecopy:
(702) 925-3905

 

with copies to:

 

Comptroller and General
Counsel

39400 Woodward Avenue Suite 130

Bloomfield Hills, MI 48304

Telephone: (248) 631-5400

 

and

 

Douglas
Horowitz

Cahill
Gordon & Reindel LLP

80
Pine Street

New
York, NY 10005

Telecopy:
(212) 269-5420

 

22

 

(b)                                 in the case of
the Sellers to the address set forth on Schedule I; and

 

in each case, with a copy to:

 

Wachovia
Bank, National Association,

as
Administrative Agent

c/o
Wells Fargo Securities, LLC

6
Concourse Parkway, Suite 1450

Atlanta,
GA  30328

Attn:                     Eero
Maki

Phone:                  404/732-0821

Fax:                      404/732-0801

 

or, as to each party, at
such other address as shall be designated by such party in a written notice to
each other party.

 

(b)                                 Notices and
communications by facsimile shall be effective upon receipt.

 

SECTION 9.04.                                   Severability
of Provisions. If any one or more of the covenants, agreements,
provisions or terms of this Agreement shall for any reason whatsoever be held
invalid, then such covenants, agreements, provisions, or terms shall be deemed
severable from the remaining covenants, agreements, provisions, or terms of
this Agreement and shall in no way affect the validity or enforceability of the
other provisions of this Agreement.

 

SECTION 9.05.                                   Assignment. This
Agreement may not be assigned by the parties hereto, except that the Purchaser
may assign its rights hereunder pursuant to the Receivables Transfer Agreement
to the Administrative Agent for the benefit of the  RTA Purchasers as security for the Purchaser’s
repayment obligations under the Receivables Transfer Agreement. The Purchaser
hereby notifies the Sellers, and the Sellers hereby acknowledge and agree, that
the Purchaser, pursuant to the Receivables Transfer Agreement, has assigned its
rights (but not its obligations) hereunder to the Administrative Agent for the
benefit of the RTA Purchasers and that the representations, warranties,
covenants and agreements of the Sellers contained in this Agreement and the
rights, powers and remedies of the Purchaser under this Agreement are intended
to benefit the RTA Purchasers and will be directly enforceable by the
Administrative Agent on their behalf. All rights, powers and remedies of the
Purchaser hereunder may be exercised by the Administrative Agent to the extent
of its rights hereunder and under the other Transaction Documents.

 

SECTION 9.06.                                   Further
Assurances. The Purchaser and the Sellers agree to do and
perform, from time to time, any and all acts and to execute any and all further
instruments required or reasonably requested by the other party more fully to
effect the purposes of this Agreement and the other Transaction Documents,
including, without limitation, the execution of any financing statements or
continuation statements or equivalent documents relating to the Receivables for
filing under the provisions of the Relevant UCC or other laws of any applicable
jurisdiction.

 

23

 

SECTION 9.07.                                   No
Waiver; Cumulative Remedies. No failure to exercise and
no delay in exercising, on the part of the Purchaser, the Sellers or the
Administrative Agent, any right, remedy, power or privilege hereunder, shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exhaustive of any rights, remedies, powers and privilege
provided by law.

 

SECTION 9.08.                                   Counterparts. (a) This
Agreement may be executed in two or more counterparts thereof (and by different
parties on separate counterparts), each of which shall be an original, but all
of which together shall constitute one and the same instrument. (b) Delivery
of an executed counterpart of a signature page to this Agreement by
facsimile shall be effective as delivery of a manually executed counterpart of
this Agreement.

 

SECTION 9.09.                                   Binding
Effect; Third-Party Beneficiaries. This Agreement and the
other Transaction Documents will inure to the benefit of and be binding upon
the parties hereto and their respective successors, transferees and permitted
assigns. The RTA Purchasers and the Administrative Agent are each intended by
the parties hereto to be third-party beneficiaries of this Agreement.

 

SECTION 9.10.                                   Merger
and Integration. Except as specifically stated otherwise herein,
this Agreement and the other Transaction Documents set forth the entire
understanding of the parties relating to the subject matter hereof, and all
prior understandings, written or oral, are superseded by this Agreement and the
other Transaction Documents.

 

SECTION 9.11.                                   Headings. The headings
herein are for purposes of reference only and shall not otherwise affect the
meaning or interpretation of any provision hereof.

 

SECTION 9.12.                                   Exhibits. The schedules
and exhibits referred to herein shall constitute a part of this Agreement and
are incorporated into this Agreement for all purposes.

 

SECTION 9.13.                                   Addition
of Sellers. Subject to the terms and conditions hereof, from
time to time one or more wholly-owned direct or indirect Subsidiaries of TriMas
Corp. may become additional Seller parties hereto.  If any such Subsidiary wishes to become an
additional Seller, TriMas Corp. shall submit a request to such effect in
writing to the Purchaser, the Administrative Agent and the RTA Purchasers.  The Purchaser, the Administrative Agent and
the RTA Purchasers will not unreasonably withhold or delay their consent to
such Subsidiary becoming an additional Seller (it being understood, however,
that such addition may be predicated on a Review and/or changes to the reserves
under the Receivables Transfer Agreement depending on the relative amount of
such Subsidiary’s receivables).  If
TriMas Corp., the Purchaser, the Administrative Agent and each of the RTA
Purchasers shall have agreed to any such request, such wholly-owned Subsidiary
shall become an additional Seller party hereto on the related Seller Addition
Date upon satisfaction of the conditions set forth in Section 7.02.

 

SECTION 9.14.                                   Confidentiality. (a) 
Each of TriMas Corp., the Sellers and the Purchaser shall maintain, and shall
cause each officer, employee and agent of itself and its Affiliates to
maintain, the confidentiality of this Agreement, the other Transaction
Documents 

 

24

 

and all other confidential proprietary information with respect to the
other parties and each of their respective businesses obtained by them in
connection with the structuring, negotiation and execution of the transactions
contemplated herein and in the other Transaction Documents, except for
information that has become publicly available or information disclosed (i) to
legal counsel, accountants and other professional advisors to the parties and
their Affiliates, (ii) as required by law, regulation or legal process
(including in connection with any registration Statement or other filing made
with the Commission); or (iii) in connection with any legal or regulatory
proceeding to which the parties or any of their Affiliates is subject. Each of
the parties hereby consents to the disclosure of any nonpublic information with
respect to it received by any of the RTA Purchasers or the Administrative Agent
to (i) any of the RTA Purchasers or the Administrative Agent, (ii) any
Participant or potential Participant, (iii) to legal counsel, accountants
and other professional advisors to the RTA Purchasers or the Administrative
Agent, (iv) as required by law, regulation or legal process (including in
connection with any registration Statement or other filing made with the
Commission) or (v) in connection with any legal or regulatory proceeding
to which the RTA Purchasers or the Administrative Agent may be subject to.

 

(b)                                 Each of the
parties hereto shall maintain, and shall cause each officer, employee and agent
of itself and its Affiliates to maintain, the confidentiality of the
Transaction Documents and all other confidential proprietary information with
respect to the RTA Purchasers and the Administrative Agent and each of their
respective businesses obtained by them in connection with the structuring,
negotiation and execution of the transactions contemplated herein and in the
other Transaction Documents, except for information that has become publicly
available or information disclosed (i) to legal counsel, accountants and
other professional advisors to the parties and their Affiliates, (ii) as
required by law, regulation or legal process (including in connection with any
registration statement or other filing made with the Commission) or (iii) in
connection with any legal or regulatory proceeding to which the parties or any
of their Affiliates is subject.

 

SECTION 9.15.                                   No
Bankruptcy Petition Against the Purchaser. TriMas Corp. and each
Seller hereby covenants and agrees that, prior to the date which is one year
and one day after the payment in full of the Aggregate Unpaids, it will not
institute against, or join any other Person in instituting against, the
Purchaser any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings or other similar proceeding under the laws of the
United States or any state of the United States. The provisions set forth in
this Section 9.15 shall be continuing and shall survive any termination of
this Agreement.

 

SECTION 9.16.                                   Waiver
of Jury Trial. Each of the parties hereto hereby waives any right
to have a jury participate in resolving any dispute, whether sounding in
contract, tort or otherwise among any of them arising out of, connected with,
relating to or incidental to the relationship between them in connection with
this Agreement or the other Transaction Documents. The provisions of this Section 9.16
shall be continuing and shall survive any termination of this Agreement.

 

(Signature Page Follows)

 

25

 

IN WITNESS WHEREOF, the
Purchaser and the Sellers each have caused this Receivables Purchase Agreement
to be duly executed by their respective officers as of the day and year first
above written.

 

	
   

  	
  TRIMAS
  CORPORATION

  

  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  ROBERT J. ZALUPSKI

  
	
   

  	
  Name:

  	
  Robert
  J. Zalupski

  
	
   

  	
  Title:

  	
  Vice
  President Finance, Corporate

  Development & Treasurer

  

 

[Receivables Purchase Agreement

TriMas Corporation]

 

Signature Page

 

 

As
Sellers:

 

 

	
   

  	
  ARROW
  ENGINE COMPANY

  
	
   

  	
  MONOGRAM
  AEROSPACE FASTENERS, INC.

  
	
   

  	
  NORRIS
  CYLINDER COMPANY

  
	
   

  	
  RIEKE
  CORPORATION

  
	
   

  	
  CEQUENT
  PERFORMANCE PRODUCTS, INC.

  
	
   

  	
  CEQUENT
  CONSUMER PRODUCTS, INC.

  
	
   

  	
  HI-VOL
  PRODUCTS LLC

  
	
   

  	
  KEO
  CUTTERS, INC.

  
	
   

  	
  RICHARDS
  MICRO-TOOL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  ROBERT J. ZALUPSKI

  
	
   

  	
  Name:

  	
  Robert
  J. Zalupski

  
	
   

  	
  Title:

  	
  Vice
  President & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LAMONS
  GASKET COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  HENRY GUND

  
	
   

  	
  Name:

  	
  Henry
  Gund

  
	
   

  	
  Title:

  	
  Vice
  President & Treasurer

  
					

 

[Receivables Purchase Agreement

Sellers]

 

 

	
   

  	
  As
  the Purchaser:

  
	
   

  	
   

  
	
   

  	
  TSPC, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  ROBERT J. ZALUPSKI

  
	
   

  	
  Name:

  	
  Robert
  J. Zalupski

  
	
   

  	
  Title:

  	
  Vice
  President & Treasurer

  
				

 

[Receivables Purchase Agreement

Purchaser]

 

 

Acknowledged and agreed as
of the date first above written:

 

WACHOVIA BANK, NATIONAL
ASSOCIATION as Administrative Agent for the benefit of the RTA Purchasers

 

	
  By:

  	
  /s/
  EERO H. MAKI

  	
   

  
	
  Name:

  	
  Eero
  H. Maki

  	
   

  
	
  Title:  Director

  	
   

  

 

 

EXHIBIT
A

 

FORM OF
SUBORDINATED NOTE

December 29, 2009

 

FOR VALUE RECEIVED, the
undersigned, TSPC, INC., a Delaware corporation (the “Maker”),
hereby promises to pay to the order of TRIMAS CORPORATION, a Delaware
corporation (the “Payee”), as
Agent for the Sellers under the Receivables Purchase Agreement referred to
below, on December 30, 2013 or earlier as provided for in the Amended and
Restated Receivables Purchase Agreement dated as of December 29, 2009
between the Maker, the Payee and the Sellers (as such agreement may from time
to time be amended, supplemented or otherwise modified and in effect, the “Receivables Purchase Agreement”), the aggregate unpaid
principal amount of all Advances to the Maker from the Sellers pursuant to the
terms of the Receivables Purchase Agreement, in lawful money of the United
States of America in immediately available funds, and to pay interest from the
date thereof on the principal amount hereof from the date of this Note
continuing until such principal balance shall be paid in full, in like funds,
at an office designated by the Payee. Accrued and unpaid interest shall be
payable in arrears on the last Business Day of each calendar month (each day,
an “Interest Payment Date”).

 

Interest shall be payable at
the initial rate of 3.50%, per annum, adjusted monthly on each Interest Payment
Date, for the month commencing on such Interest Payment date, to the LMIR (as
defined in the Receivables Transfer Agreement referenced in the Receivables
Purchase Agreement) then in effect. If any Interest Payment Date shall not be a
Business Day, then such Interest Payment Date shall be deemed to occur on the
next following Business Day, but no additional interest shall be payable. A “Business Day” means any day that is not a Saturday, Sunday
or other day on which commercial banks in New York, New York are required or
authorized by law to be closed.

 

The undersigned, for itself
and its legal representatives, successors and assigns, and any others who may
at any time become liable for payment hereunder, hereby (a) consents to
any and all extensions of time, renewals, waivers, or modifications, if any,
that may be granted or consented to by the Payee with regard to the time of
payment hereunder or any other provisions hereof. A-1 The Maker hereby waives
diligence, presentment, demand, protest, notice of dishonor and notice of
nonpayment. The non-exercise by the holder hereof of any of its rights, powers
or remedies hereunder or thereafter available in law, in equity, by statute or
otherwise in any particular instance shall not constitute a waiver thereof in
that or any subsequent instance.

 

All borrowings evidenced by
this Subordinated Note and all payments and prepayments of the principal hereof
and interest hereon and the respective dates thereof shall be endorsed by the
holder hereof on the schedule attached hereto and made a part hereof, or on a
continuation thereof which shall be attached hereto and made a part hereof, or
otherwise recorded by such holder in its internal records; provided, however,
that the failure of the holder hereof to make such a notation or any error in
such a notation shall not in any manner affect the obligation of the Maker to
make payments of principal and interest in accordance with the terms of this
Subordinated Note and the Receivables Purchase Agreement.

 

A-1

 

The Maker shall have the
right to subject to the limitations set forth in the Receivables Purchase
Agreement, reborrow Advances made to it without penalty or premium.

 

This Note may be prepaid in
full, or from time to time in part, at any time. All payments received under
this Note shall be applied first to accrued interest and the remainder, if any,
to the principal amount hereunder.

 

This Subordinated Note is the
Subordinated Note referred to in the Receivables Purchase Agreement, which,
among other things, contains provisions for the subordination of this
Subordinated Note to the rights of certain parties under the Receivables
Transfer Agreement, all upon the terms and conditions specified therein and as
specified on Schedule II to this Subordinated Note. Capitalized terms used
herein and not otherwise defined herein shall have the meanings assigned to
such terms in, or incorporated by reference into, the Receivables Purchase
Agreement.

 

This Subordinated Note shall
be governed by, and construed in accordance with, the laws of the State of New
York.

 

IN WITNESS WHEREOF, the
Maker has caused this Note to be signed in its corporate name by the officer
thereunto duly authorized, and to be dated as of the date first above written.

 

	
   

  	
  TSPC,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

A-2

 

SCHEDULE
I TO SUBORDINATED NOTE

 

Advances and Payments

 

	
  Date

  	
   

  	
  Amount of

  Advance

  	
   

  	
  Amount of 

  Principal

  Payment

  	
   

  	
  Outstanding

  Balance

  	
   

  	
  Initials of

  Person Making

  This Notation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-3

 

SCHEDULE
II

 

TO
SUBORDINATED NOTE

 

SUBORDINATION

 

Section 1.                                          Agreement
to Subordinate. (a) The Maker for itself and its successors
covenants and agrees, and the Payee, by its acceptance of this Note, likewise
covenants and agrees, that the indebtedness represented by this Note and the
payment of the principal of and interest on this Note is hereby expressly
subordinated, to the extent and in the manner hereinafter set forth, to the
prior payment in full of all Senior Indebtedness (as defined in Section l(b) below).
This Schedule II shall constitute a continuing offer and inducement to all Persons
who become holders of, or continue to hold, Senior Indebtedness. The provisions
of this Schedule II are made for the benefit of the holders of Senior
Indebtedness, each of whom is an obligee hereunder and is entitled to enforce
such holders’ rights hereunder, without any act or notice of acceptance hereof
or reliance hereon. No amendment, modification or discharge of any provision of
this Schedule II shall be effective against any holder of Senior Indebtedness
unless expressly consented to in writing by such holder. The provisions of this
Schedule II apply notwithstanding anything to the contrary contained in this
Note.

 

(b)                                 “Senior Indebtedness” means all indebtedness incurred,
assumed or guaranteed, directly or indirectly, by the Maker, either before, on,
or after the date hereof without any limitation as to the amount or terms
thereof, and whether such indebtedness (including, but not limited to, interest
on any such indebtedness) arises or accrues before or after the commencement of
any bankruptcy, insolvency or receivership proceedings, including (1) all
obligations of the Maker to the Administrative Agent and the RTA Purchasers (as
such terms are defined below) incurred pursuant to the Receivables Transfer
Agreement dated as of December 29, 2009 (as amended, supplemented or
otherwise modified from time to time, the “Receivables Transfer
Agreement”), among the Maker, the RTA Purchasers (as defined in the
Receivables Purchase Agreement), Wachovia Bank, National Association, as
administrative agent (the “Administrative Agent”),
the Payee, individually, as collection agent (in such capacity, the “Collection Agent”) and TriMas, LLC, as Guarantor, including
all fees, expenses, indemnities and any other amounts payable pursuant to the
Receivables Transfer Agreement. Senior Indebtedness shall continue to
constitute Senior Indebtedness for all purposes of this Note, and the
provisions of this Schedule II shall continue to apply to such Senior
Indebtedness, notwithstanding the fact that such Senior Indebtedness or any
claim in respect thereof shall be disallowed, avoided or subordinated pursuant
to the provisions of the United States Bankruptcy Code or other applicable law.

 

Section 2.                                          Subordination
of this Note. In the event of any dissolution, winding- up, liquidation
or reorganization of the Maker (whether voluntary or involuntary and whether in
bankruptcy, insolvency or receivership proceedings, or upon an assignment for
the benefit of creditors or any other marshaling of the assets and liabilities
of the Maker or otherwise), the Maker and the Payee, by its acceptance hereof,
covenant and agree that:

 

(a)                                  all Senior
Indebtedness shall first be paid in full, before any payment or distribution is
made upon the principal of or interest on this Note:

 

A-4

 

(b)                                 any payment or
distribution of assets of the Maker or from the estate created by the
commencement of any such proceeding, whether in cash, property or securities to
which the Payee would be entitled except for the provisions of this Schedule II
(including any such payments or distributions which may be payable or
deliverable by reason of the payment of any other indebtedness of the Maker
being subordinated to the payment of this Note), shall be paid or delivered by
the Maker or any receiver, trustee in bankruptcy, liquidating trustee, agent or
other person making such payment or distribution directly to the holders of
Senior Indebtedness or their representative or representatives or to the
trustee or trustees under any indenture under which any instruments evidencing
any of such Senior Indebtedness may have been issued, as their respective
interests may appear, to the extent necessary to pay in full all Senior
Indebtedness remaining unpaid, after giving effect to any concurrent payment or
distribution to the holders of such Senior Indebtedness, before any payment or
distribution is made to the Payee; and

 

(c)                                  in the event
that any payment or distribution of cash, property or securities shall be
received by the Payee in contravention of subsection (a) or (b) of
this Section 2 (including any such payments or distributions which may be
payable or deliverable by reason of the payment of any other indebtedness of
the Maker being subordinated to payment of this Note) before all Senior
Indebtedness is paid in full, such payment or distribution shall be held for
the benefit of and shall be paid over to the holders of such Senior
Indebtedness or their representative or representatives, or to the trustee or
trustees under any indenture under which any instrument evidencing any Senior
Indebtedness may have been issued, as their respective interests may appear, to
the extent necessary to pay in full all Senior Indebtedness remaining unpaid,
after giving effect to any concurrent payment or distribution to the holders of
Senior Indebtedness.

 

The Maker shall give prompt
written notice to the Payee of any dissolution, winding-up, liquidation or
reorganization of the Maker or any assignment for the benefit of creditors.

 

Section 3.                                          Subrogation;
Enforcement. Subject to and only after the payment in full of
all Senior Indebtedness at the time outstanding, the Payee shall be subrogated
to the rights of the holders of Senior Indebtedness (to the extent of payments
or distributions previously made to such holders of Senior Indebtedness
pursuant to the provisions of Section 2 and equally and ratably with the
holders of all indebtedness of the Maker which by its express terms is
subordinated to indebtedness of the Maker to substantially the same extent as
this Note is subordinated and is entitled to like rights of subrogation) to
receive payments or distributions of assets of the Maker applicable to the
Senior Indebtedness until amounts owing on this Note shall be paid in full. No
payments or distributions to the holders of Senior Indebtedness of any cash,
property or securities to which the Payee would be entitled except for the
provisions of this Schedule II, and no payment over pursuant to the provisions
of this Schedule II to holders of Senior Indebtedness by the Payee, shall as
between the Maker, its creditors other than the holders of Senior Indebtedness
and the Payee be deemed to be a payment by the Maker to or for the account of
the holders of Senior Indebtedness, it being understood that the provisions of
this Schedule II are intended solely for the purpose of defining the relative
rights of the Payee, on the one hand, and the holders of the Senior
Indebtedness, on the other hand, and nothing contained in this Schedule II or
elsewhere in this Note is intended to or shall impair the obligation of the 

 

A-5

 

Maker,
which is absolute and unconditional, to pay to the Payee, subject to the rights
of the holders of Senior Indebtedness, the principal of and interest on this
Note as and when the same shall become due and payable in accordance with its
terms, or is intended to or shall effect the relative rights of the Payee and
creditors of the Maker other than the holders of the Senior Indebtedness, nor
shall anything herein or therein prevent the Payee from exercising all remedies
otherwise permitted by applicable law upon default under this Note, subject to
the rights, if any, under this Schedule II, of the holders of Senior
Indebtedness in respect of cash, property or securities of the Maker received
upon the exercise of any such remedy.

 

The Payee by its acceptance
hereof: (i) if and so long as payment with respect to this Note is
prohibited under this Schedule II, irrevocably authorizes and empowers (but
without imposing any obligation on, or any duty to the Payee from) each holder
of Senior Indebtedness at any time outstanding and such holder’s
representatives, to demand, sue for, collect, receive and receipt for the Payee’s
payments and distributions in respect of this Note (including, without
limitation, all payments and distributions which may be payable or deliverable
pursuant to the terms of any indebtedness subordinated to this Note which are
required to be paid or delivered to the holders of Senior Indebtedness as
provided in this Schedule II and to file and prove all claims therefor and all
such other action (including the right to vote, file and prove claims
respecting any indebtedness subordinated to this Note), as such holder of
Senior Indebtedness or such holder’s representatives, may determine to be
necessary or appropriate for the enforcement of the provisions of this Schedule
II; and (ii) agrees to execute and to deliver to each holder of Senior
Indebtedness and such holder’s representatives all such further instruments
confirming the authorization hereinabove set forth, and all such powers of
attorney, proofs of claim, assignments of claim and other instruments, and to
take all such other action that may be requested by such holder of Senior
Indebtedness or such holder’s representatives in order to enable such holder to
enforce all claims upon or in respect of the Payee’s payments and distributions
in respect of this Note and so long as there is Senior Indebtedness
outstanding, not to compromise, release, forgive or otherwise discharge the
obligations of the Maker with respect to this Note. For purposes of this Note,
Senior Indebtedness shall be deemed to be outstanding until the Receivables
Transfer Agreement is no longer in effect.

 

Section 4.                                          Reliance
on Court Orders. Upon any payment or distribution of assets of the
Maker referred to in Section 2, the Payee shall be entitled to rely upon a
certificate of the receiver, trustee in bankruptcy, liquidating trustee, agent
or other person making such payment or distribution, delivered to the Payee,
for the purpose of ascertaining the persons entitled to participate in such
distribution, the holders of Senior Indebtedness and other indebtedness of the
Maker, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Schedule
II.

 

The Payee owes no fiduciary
duty to the holders of Senior Indebtedness and the Payee undertakes to perform
or to observe only such covenants and obligations as are specifically set forth
in this Note and no implied covenants and obligations with respect to holders
of Senior Indebtedness shall be read into this Note against the Payee.

 

Section 5.                                          Payments
Upon Default in Payment of Senior Indebtedness and During Senior Indebtedness
Default. The Maker shall not make any payment with respect
to this Note if and so long as:

 

A-6

 

(1)                                  any Senior
Indebtedness is or becomes due and payable (whether at maturity, for an
installment of principal or interest, upon acceleration, for mandatory
prepayment, or otherwise) and remains unpaid; or

 

(2)                                  any Senior
Indebtedness Default (as defined below) has occurred and has not been cured or
waived in conformity with the terms of the instrument, indenture or agreement
governing such Senior Indebtedness; or

 

(3)                                  a payment by
the Maker with respect to this Note would, immediately after giving effect
thereto, result in a Senior Indebtedness Default.

 

A payment with respect to
this Note shall include, without limitation, payment of principal of and
interest on this Note, purchase of this Note by the Maker and any other
payment.

 

“Senior
Indebtedness Default” means the failure to make any payment of any
Senior Indebtedness when due or the happening of an event of default with
respect to any Senior Indebtedness, as defined therein or in the instrument
under which the same is outstanding which, by its terms, if occurring prior to
the stated maturity of such Senior Indebtedness, permits or with the giving of
notice or lapse of time (or both) would permit any holder thereof, any group of
such holders or any trustee or representative for such holders thereupon to
accelerate the maturity thereof or results in such acceleration, including,
without limitation, a “Termination Event” or “Potential Termination Event” as
defined in the Receivables Transfer Agreement, whether or not such Senior
Indebtedness or instrument has been avoided, disallowed or subordinated.

 

In the event that, notwithstanding
the foregoing, any payment or distribution of cash, property or securities
shall be received or collected by the Payee in contravention of this Section 5
or if and as long as payment with respect to this Note is prohibited under this
Schedule II, and except as otherwise expressly provided in Sections 6 and 7
below, such payment or distribution shall be held for the benefit of and shall
be paid over to the holders of Senior Indebtedness or their representative or
representatives or to the trustee or trustees under any indenture under which
any instrument evidencing Senior Indebtedness may have been issued, as their
respective interests may appear, to the extent necessary to pay in full all
Senior Indebtedness then due, after giving effect to any concurrent payment to
the holders of Senior Indebtedness.

 

Section 6.                                          Payee
Entitled to Presume Payments Permitted in Absence of Notice. Unless and
until written notice shall be received by the Payee from any holder of Senior
Indebtedness notifying the Payee of the existence of one or more of the
circumstances which would prohibit the making of any payment with respect to
this Note under the provisions of Section 5 and stating that it is a “Notice
of Senior Indebtedness Default”, the Payee shall be entitled to assume that no
such circumstances exist. From and after the receipt by the Payee of such
Notice the Payee shall, so long as Senior Indebtedness shall be outstanding
(but not thereafter), assume that such circumstances continue to exist unless
and until the Payee receives a notice from the holder of such Senior
Indebtedness to which such default relates stating that such holder has
received evidence satisfactory to it that such circumstances have been cured or
waived and stating that it is a “Notice of Cure or Waiver of Senior
Indebtedness Default.”

 

A-7

 

Section 7.                                          Application
by Payee of Moneys Deposited With It. Any funds deposited with or
collected by the Payee in respect of this Note shall be subject to the
provisions of this Schedule II, except that, if immediately prior to the date
on which by the terms of this Note any such funds may become payable for any
purpose (including, without limitation, the payment of either the principal of
or the interest on this Note), the Payee shall not have received with respect
to such finds the Notice of Senior Indebtedness Default provided for in Section 6,
then the Payee shall have full power and authority to receive such funds and to
apply the same to the purpose for which they were received and shall not be
affected with respect to such funds by any Notice of Senior Indebtedness
default to the contrary which may be received by the Payee on or after such
date.

 

Section 8.                                          Obligation
not Affected. Except as expressly provided in this Schedule II,
nothing contained in this Schedule II or elsewhere in this Note shall affect
the obligation of the Maker to make payments of the principal of or interest on
this Note at any time in accordance with the provisions hereof.

 

Section 9.                                          No
Waiver. No right of any present or future holder of any Senior Indebtedness of
the Maker to enforce subordination as herein provided shall at any time in any
way be prejudiced or impaired by any act of or failure to act on the part of
the Maker or the Payee or by any act or failure to act, by any such holder, or
by any noncompliance by the Maker or the Payee with the terms, provisions and
covenants of this Note, regardless of any knowledge thereof which any such
holder may have or be otherwise charged with. The holders of Senior
Indebtedness may extend, renew, modify or amend the terms of the Senior
Indebtedness or any security therefor or guaranty thereof and release, sell or
exchange or enforce such security or guaranty or elect any right or remedy, or
delay in enforcing or release any right or remedy and otherwise deal freely
with the Maker all without notice to the Payee and all without affecting the
liabilities and obligations of the Payee, even if any right of reimbursement or
subrogation or other right or remedy of the Payee is extinguished, affected or
impaired thereby. No provision of any supplemental indenture which affects the
superior position of the holders of Senior Indebtedness shall be effective
against the holders of Senior Indebtedness who have not consented thereto.

 

Section 10.                                   Effectuation
of Subordination by the Payee. The Payee, by his
acceptance of this Note, agrees to take such action as may be necessary or
appropriate to effectuate the subordination as provided in this Schedule II.

 

Section 11.                                   Notice
to Maker. The Payee shall promptly advise the Maker of any
notice, presentation or demand, as the case may be, received by the Payee from
holders of Senior Indebtedness.

 

Section 12.                                   Payee
to Presume Outstanding Senior Indebtedness in Absence of Notice. Unless and
until written notice shall be given to the Payee by the Maker and the
Administrative Agent notifying the Payee that Senior Indebtedness is no longer
outstanding, the Payee shall assume that Senior Indebtedness is outstanding.
The Maker agrees to give, and to request the Administrative Agent to give, such
notice to the Payee promptly after the first date on which no Senior
Indebtedness shall be outstanding.

 

A-8

 

EXHIBIT
B

 

TO

RECEIVABLES PURCHASE AGREEMENT 

[FORM OF ADDITIONAL SELLER SUPPLEMENT]

 

SUPPLEMENT, dated [                    ],
to the Amended and Restated Receivables Purchase Agreement, dated as of December 29,
2009 (as amended, supplemented or otherwise modified from time to time in
accordance with its terms, the “Receivables Purchase
Agreement”), among TRIMAS CORPORATION (“TriMas Corp.”),
the Sellers named on Schedule I thereto or added pursuant to a prior Additional
Seller Supplement and TSPC, INC., as the Purchaser.

 

W I T N
E S S E T H:

 

WHEREAS, the Receivables
Purchase Agreement provides that any wholly- owned direct or indirect
Subsidiary of TriMas Corp., although not originally a Seller thereunder, may
become a Seller under the Receivables Purchase Agreement upon the satisfaction
of each of the conditions precedent set forth in Sections 7.02 and 9.13 of the
Receivables Purchase Agreement;

 

WHEREAS, the undersigned was
not an original Seller under the Receivables Purchase Agreement but now desires
to become a Seller thereunder.

 

NOW, THEREFORE, the
undersigned hereby agrees as follows: The undersigned agrees to be bound by all
of the provisions of the Receivables Purchase Agreement applicable to a Seller
thereunder and agrees that it shall, on the date this Supplement is accepted by
               ,
the Purchaser, the Administrative Agent and each of the RTA Purchasers and each
of the conditions precedent set forth in Section 7.02 of the Receivables
Purchase Agreement have been satisfied, become a Seller for all purposes of the
Receivables Purchase Agreement to the same extent as if originally a party
thereto.

 

IN WITNESS WHEREOF, the
undersigned has caused this Supplement to be executed and delivered by a duly
authorized officer on the date first above written.

	
   

  	
  [Insert
  name of Seller]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  [address]

  

 

C-1

 

Accepted as of the date
first above written:

 

	
  TRIMAS
  CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
  Accepted
  as of the date first above written:

  	
   

  
	
   

  	
   

  
	
  TSPC,
  INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
  Acknowledged
  as of the date first above written:

  	
   

  
	
   

  	
   

  
	
  WACHOVIA
  BANK, NATIONAL ASSOCIATION,

  	
   

  
	
  individually
  and as Administrative Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
										

 

C-2

 

SCHEDULE I

 

TO RECEIVABLES PURCHASE
AGREEMENT

 

Location
of Each Seller’s Chief Executive Office

 

	
  Corporate Name

  	
   

  	
  Address
  of Chief Executive Office

  	
   

  	
  County

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Arrow
  Engine Company

  	
   

  	
  2301
  E. Independence, Tulsa, OK 74110

  	
   

  	
  Tulsa

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cequent
  Consumer Products, Inc.

  	
   

  	
  29000-2
  Aurora Road, Solon, OH 44139

  	
   

  	
  Cuyahoga

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lamons
  Gasket Company

  	
   

  	
  7300
  Airport Boulevard, Houston, TX 77061

  	
   

  	
  Fort
  Bend

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Monogram
  Aerospace Fasteners, Inc.

  	
   

  	
  3423
  S. Garfield Ave., City of Commerce, CA 90040

  	
   

  	
  Los
  Angeles

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Norris
  Cylinder Company

  	
   

  	
  1535
  FM 1845 S., P.O. Box 7486, Longview, TX 75603

  	
   

  	
  Gregg

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rieke
  Corporation

  	
   

  	
  500
  W. Seventh St., Auburn, IN 46706

  	
   

  	
  De
  Kalb

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cequent
  Performance Products, Inc.

  	
   

  	
  47774
  Anchor Court West, Plymouth, MI 48170

  	
   

  	
  Wayne

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hi-Vol
  Products, LLC

  	
   

  	
  36975
  Schoolcraft Rd., Livonia, MI 48150

  	
   

  	
  Wayne

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Keo
  Cutters, Inc.

  	
   

  	
  25040
  East Street, Warren, MI 48089

  	
   

  	
  Wayne

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Richards
  Micro-Tool, Inc.

  	
   

  	
  250
  Cherry St., Plymouth, MA 02360

  	
   

  	
  Plymouth

  

 

SI-1Exhibit 10.3

 

Execution Version

 

 

RECEIVABLES TRANSFER AGREEMENT

 

by and among

 

TSPC, INC.,

 

as Transferor,

 

TRIMAS CORPORATION,

 

individually,

as Collection Agent,

 

TRIMAS COMPANY, LLC

 

individually,

as Guarantor,

 

THE PERSONS PARTY HERETO FROM TIME TO TIME AS
PURCHASERS

 

and

 

WACHOVIA BANK, NATIONAL ASSOCIATION,

 

as Administrative Agent

 

Dated as of December 29, 2009

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  ARTICLE I Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  Certain Defined Terms

  	
  1

  
	
  SECTION 1.02.

  	
  Other Terms

  	
  1

  
	
  SECTION 1.03.

  	
  Computation of Time Periods

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II Purchases and Settlements

  	
  2

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  Facility

  	
  2

  
	
  SECTION 2.02.

  	
  Transfers; Eligible Receivables

  	
  2

  
	
  SECTION 2.03.

  	
  [Intentionally Deleted]

  	
  4

  
	
  SECTION 2.04.

  	
  Monthly Payment Dates

  	
  4

  
	
  SECTION 2.05.

  	
  Reinvestment Procedures

  	
  4

  
	
  SECTION 2.06.

  	
  Liquidation Settlement Procedures

  	
  4

  
	
  SECTION 2.07.

  	
  Change of Commitments

  	
  5

  
	
  SECTION 2.08.

  	
  Fees

  	
  7

  
	
  SECTION 2.09.

  	
  Protection of Ownership Interest of the Purchasers

  	
  7

  
	
  SECTION 2.10.

  	
  Deemed Collections; Application of Payments

  	
  8

  
	
  SECTION 2.11.

  	
  Payments and Computations, etc.

  	
  9

  
	
  SECTION 2.12.

  	
  Settlement Statements

  	
  9

  
	
  SECTION 2.13.

  	
  [Intentionally Deleted.]

  	
  9

  
	
  SECTION 2.14.

  	
  Right of Setoff

  	
  9

  
	
  SECTION 2.15.

  	
  Sharing of Payments, etc.

  	
  10

  
	
  SECTION 2.16.

  	
  [Intentionally Deleted]

  	
  10

  
	
  SECTION 2.17.

  	
  [Intentionally Deleted]

  	
  10

  
	
  SECTION 2.18.

  	
  Illegality

  	
  10

  
	
  SECTION 2.19.

  	
  Inability to Determine the LMIR

  	
  11

  
	
  SECTION 2.20.

  	
  Indemnification

  	
  11

  
	
  SECTION 2.21.

  	
  Indemnity for Reserves and Expenses

  	
  14

  
	
  SECTION 2.22.

  	
  Indemnity for Taxes

  	
  16

  
	
  SECTION 2.23.

  	
  Other Costs, Expenses and Related Matters

  	
  17

  
	
  SECTION 2.24.

  	
  Purchasers

  	
  18

  
	
  SECTION 2.25.

  	
  Use of Historical Data

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE III Representations and Warranties

  	
  18

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Representations and Warranties of the Transferor

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV Conditions Precedent

  	
  22

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  Conditions to Effectiveness

  	
  22

  
	
  SECTION 4.02.

  	
  Conditions to Initial Incremental Transfer

  	
  23

  
	
  SECTION 4.03.

  	
  Conditions to Each Transfer

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE V Covenants

  	
  25

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  Affirmative Covenants of the Transferor

  	
  25

  

 

i

 

	
  SECTION 5.02.

  	
  Negative Covenants of the Transferor

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI Administration and Collections

  	
  34

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  Appointment of Collection Agent

  	
  34

  
	
  SECTION 6.02.

  	
  Duties of Collection Agent

  	
  34

  
	
  SECTION 6.03.

  	
  Rights After Designation of New Collection Agent

  	
  35

  
	
  SECTION 6.04.

  	
  Representations and Warranties of the Collection Agent

  	
  36

  
	
  SECTION 6.05.

  	
  Covenants of the Collection Agent

  	
  37

  
	
  SECTION 6.06.

  	
  Negative Covenants of the Collection Agent

  	
  38

  
	
  SECTION 6.07.

  	
  Collection Agent Default

  	
  38

  
	
  SECTION 6.08.

  	
  Responsibilities of the Transferor and the Sellers

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII Termination Events

  	
  40

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  Termination Events

  	
  40

  
	
  SECTION 7.02.

  	
  Remedies Upon the Occurrence of a Termination Event

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII The Administrative Agent

  	
  42

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
  Appointment

  	
  42

  
	
  SECTION 8.02.

  	
  Delegation of Duties

  	
  43

  
	
  SECTION 8.03.

  	
  Exculpatory Provisions

  	
  43

  
	
  SECTION 8.04.

  	
  Reliance by Administrative Agent

  	
  43

  
	
  SECTION 8.05.

  	
  Notice of Collection Agent Default

  	
  44

  
	
  SECTION 8.06.

  	
  Non-Reliance on the Administrative Agent and Other Purchasers

  	
  44

  
	
  SECTION 8.07.

  	
  Indemnification

  	
  44

  
	
  SECTION 8.08.

  	
  The Administrative Agent in Its Individual Capacity

  	
  45

  
	
  SECTION 8.09.

  	
  Resignation of Administrative Agent; Successor Administrative Agent

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX Limited Guaranty

  	
  46

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
  Guaranty of Obligations

  	
  46

  
	
  SECTION 9.02.

  	
  Validity of Obligations; Irrevocability

  	
  46

  
	
  SECTION 9.03.

  	
  Several Obligations

  	
  47

  
	
  SECTION 9.04.

  	
  Subrogation Rights

  	
  47

  
	
  SECTION 9.05.

  	
  Rights of Set-Off

  	
  47

  
	
  SECTION 9.06.

  	
  Representations and Warranties

  	
  47

  
	
   

  	
   

  	
   

  
	
  ARTICLE X Miscellaneous

  	
  48

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
  Term of Agreement

  	
  48

  
	
  SECTION 10.02.

  	
  Waivers; Amendments

  	
  49

  
	
  SECTION 10.03.

  	
  Notices

  	
  49

  
	
  SECTION 10.04.

  	
  Governing Law; Submission to Jurisdiction; Integration

  	
  51

  
	
  SECTION 10.05.

  	
  Severability; Counterparts

  	
  51

  
	
  SECTION 10.06.

  	
  Successors and Assigns

  	
  51

  
	
  SECTION 10.07.

  	
  Confidentiality

  	
  53

  
	
  SECTION 10.08.

  	
  Characterization of the Transactions Contemplated by the Agreement

  	
  54

  
	
  SECTION 10.09.

  	
  Limitation on the Termination of Sellers

  	
  55

  

 

ii

 

SCHEDULES AND EXHIBITS

 

	
  Schedule A

  	
  Definitions

  
	
  Schedule B

  	
  Purchasers and their Commitments

  
	
  Exhibit A

  	
  Credit and Collection Policy

  
	
  Exhibit B

  	
  Lock-Box Accounts

  
	
  Exhibit C

  	
  Fiscal Months

  
	
  Exhibit D

  	
  Form of Interim Report

  
	
  Exhibit E

  	
  Form of Monthly Report

  
	
  Exhibit F

  	
  Form of Transfer Notice

  
	
  Exhibit G

  	
  Form of Reduction Notice

  
	
  Exhibit H

  	
  Trade Names

  
	
  Exhibit I

  	
  Form of Secretary’s Certificate

  
	
  Exhibit J

  	
  Form of Transfer Supplement

  

 

iii

 

RECEIVABLES TRANSFER AGREEMENT

 

RECEIVABLES TRANSFER
AGREEMENT (as amended, supplemented or otherwise modified and in effect from
time to time, this “Agreement”),
dated as of December 29, 2009, by and among TSPC, INC., a Nevada
corporation, as transferor (in such capacity, the “Transferor”), TRIMAS CORPORATION (“TriMas Corp.”), a
Delaware corporation, individually, as collection agent (in such capacity, the “Collection Agent”),
TRIMAS COMPANY LLC (“TriMas
LLC”), a Delaware limited liability company, individually, as
guarantor under the Limited Guaranty set forth in Article IX (in such
capacity, the “Guarantor”),
the several financial institutions identified on Schedule B and their
respective permitted successors and assigns (the “Purchasers”; each, individually, a “Purchaser”), and
WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association (“Wachovia”), as
administrative agent for the benefit of the Purchasers (in such capacity,
together with its successors in such capacity, the “Administrative Agent”).

 

PRELIMINARY STATEMENTS

 

WHEREAS, the Transferor may desire to convey, transfer and
assign to the Purchasers from time to time, undivided percentage interests in
its accounts receivable, and each of the Purchasers hereby severally agrees to
accept its Pro Rata Share of each such conveyance, transfer and assignment of
such undivided percentage interests, subject to the terms and conditions of
this Agreement.

 

NOW, THEREFORE, the parties hereby agree as follows:

 

ARTICLE
I

Definitions

 

SECTION 1.01.    Certain Defined Terms.  Capitalized
terms used herein shall have the meanings assigned to such terms in, or
incorporated by reference into, Schedule A attached hereto, which Schedule A is
incorporated by reference herein.

 

SECTION 1.02.    Other Terms.  Except as
otherwise expressly provided herein, all terms of an accounting or a financial
nature shall be construed in accordance with GAAP, as in effect from time to
time; provided
that, if TriMas Corp. or the Transferor notifies the Administrative Agent that
TriMas Corp. or the Transferor requests an amendment to any provision hereof to
eliminate the effect of any change occurring after the date hereof in GAAP or
in the application thereof on the operation of such provision (or if the
Administrative Agent notifies TriMas Corp. or the Transferor that the Required
Purchasers request an amendment to any provision hereof for such purpose),
regardless of whether any such notice is given before or after such change in
GAAP or in the application thereof, then such provision shall be interpreted on
the basis of GAAP as in effect and applied immediately before such change shall
have become effective until such notice shall have been withdrawn or such
provision amended in accordance herewith.

 

SECTION 1.03.    Computation of Time Periods.  Unless
otherwise stated in this Agreement, in the computation of a period of time from
a specified date to a later specified date,

 

 

the word “from” means
“from and including,” the words “to” and “until” each means “to but excluding,”
and the word “within” means “from and excluding a specified date and to and
including a later specified date.”

 

ARTICLE
II

Purchases and Settlements

 

SECTION 2.01.    Facility.  Upon the terms
and subject to the conditions set forth in this Agreement, the parties hereto
establish a receivables financing facility. 
The Purchasers’ several obligations to make purchases from the
Transferor hereunder shall terminate on the Termination Date.  Notwithstanding anything to the contrary
contained herein or in the other Transaction Documents, no Purchaser shall be
obligated to provide the Transferor with funds in an amount that would exceed
such Purchaser’s unused Commitment then in effect, and the failure of any
Purchaser to make its Pro Rata Share of such purchase available to the
Transferor (subject to the terms and conditions set forth herein) shall not
relieve any other Purchaser of its obligations hereunder.

 

SECTION 2.02.    Transfers; Eligible Receivables.

 

(a) Incremental Transfers.  From time to time prior to the Termination
Date, upon the terms and subject to the conditions set forth herein and in the
other Transaction Documents, the Transferor may make a conveyance, transfer and
assignment to the Purchasers of an undivided percentage ownership interest in
the Receivables, together with Related Security, Collections and Proceeds with
respect thereto (each, an “Incremental
Transfer”) at the Transfer Price, without recourse except as
provided herein, and each of the Purchasers severally agrees to fund its Pro
Rata Share of each requested Incremental Transfer, provided, however, that
after giving prospective effect to the funding of the Transfer Price for any
Incremental Transfer and the payment to the Transferor of such Transfer Price,
each of the conditions precedent in Article IV of this Agreement shall be
satisfied (with respect to the initial Incremental Transfer) or each of the
conditions precedent in Section 4.03 shall be satisfied (in the case of
all subsequent Incremental Transfers).

 

The Transferor shall, by
telecopied or electronic notice to the Administrative Agent in the form of
Exhibit F hereto (each, a “Transfer Notice”), offer to make an Incremental
Transfer at least one (1) Business Day prior to the proposed date
thereof.  Each such notice shall specify
(x) the desired Transfer Price (which shall be at least $1,000,000 per
Purchaser or an integral multiple of $100,000 in excess thereof) or, to the
extent that the then available unused portion of the Facility Limit is less
than such amount, such lesser amount equal to such available portion of the
Facility Limit; and (y) the desired date of such Incremental Transfer
which shall be a Business Day.  Each
Incremental Transfer shall be subject to the condition precedent that the
Collection Agent shall have delivered to the Administrative Agent, in form and
substance satisfactory to the Administrative Agent, all Settlement Statements
required to be delivered as of the date of the applicable Transfer Notice,
together with such other additional information as the Administrative Agent may
reasonably request. The Administrative Agent will promptly notify the
Purchasers of the Administrative Agent’s receipt of any Transfer Notice.

 

2

 

Each Transfer Notice
shall be irrevocable and binding on the Transferor, and the Transferor shall
indemnify the Purchasers against any loss or expense incurred by the  Purchasers, either directly or indirectly, as
a result of any failure by the Transferor to complete such Incremental
Transfer, including, without limitation, any loss or expense incurred by
the  Purchasers by reason of the
liquidation or reemployment of funds acquired by the Purchasers to fund such
Incremental Transfer.

 

On the day of each
Incremental Transfer, each Purchaser participating in such purchase shall
deposit to the Transferor’s account, in immediately available funds, an amount
equal to its Pro Rata Share of the Transfer Price for such Incremental
Transfer.  No Purchaser shall have any
responsibility for the failure of any other Purchaser to make any such deposit.

 

(b)           Reinvestment
Transfers.  On each Business
Day occurring after the initial Incremental Transfer hereunder and prior to the
Termination Date, the Transferor may convey, transfer and assign to each
Purchaser, and each Purchaser shall purchase from the Transferor, an undivided
percentage ownership interest in each and every Receivable, together with
Related Security, Collections and Proceeds with respect thereto, to the extent
that Collections are available for such Transfer in accordance with
Section 2.05 hereof.  The Transferor
agrees to maintain, at all times prior to the Termination Date, a Net
Receivables Balance in an amount at least sufficient to maintain (pursuant to
Section 2.06) the Percentage Interest at an amount not greater than the
Maximum Percentage Interest. 
Accordingly, the maximum amount of funding that the Transferor may
obtain on the Initial Incremental Transfer Date or at any time thereafter shall
be equal to the maximum Net Investment that would not exceed the Facility Limit
and would not cause the Percentage Interest to exceed the Maximum Percentage
Interest.

 

(c)           All
Transfers.  Each Transfer
shall constitute a purchase of undivided percentage ownership interests in each
and every Receivable, together with Related Security, Collections and Proceeds
with respect thereto, then existing, as well as in each and every Receivable,
together with Related Security, Collections and Proceeds with respect thereto,
which arises at any time after the date of such Transfer.  The applicable Purchasers’ aggregate
undivided percentage ownership interest in the Receivables, together with the
Related Security, Collections and Proceeds with respect thereto, shall equal
the Percentage Interest in effect from time to time.  By accepting any conveyance, transfer and
assignment of ownership interests in the Receivables hereunder, none of the
Purchasers nor the Administrative Agent assumes or shall have any obligations
or liability under any of the applicable Contracts, all of which shall remain
the obligations and liabilities of the Sellers. 
Such purchases from the Transferor by the Purchasers shall be made in
accordance with their respective Pro Rata Shares.

 

(d)           Percentage
Interest.  The Percentage
Interest shall be initially computed as of the opening of business of the
Collection Agent on the Initial Incremental Transfer Date.  Thereafter, until the Termination Date, the
Percentage Interest shall be automatically recomputed as of the close of
business of the Collection Agent on each day (other than a day after the
Termination Date).  The Percentage
Interest shall remain constant from the time as of which any such computation
or recomputation is made until the time as of which the next such
recomputation, if any, shall be made.  At
all times on and after the Termination Date until the date on which the Net
Investment has been reduced to zero and all accrued Discount, Servicing Fees
and all other Aggregate Unpaids have been paid in full, the Percentage Interest
shall equal 100%.

 

3

 

SECTION 2.03.    [Intentionally Deleted].

 

SECTION 2.04.    Monthly Payment Dates. 
Notwithstanding the limitation on recourse under Section 2.01
hereof, on each Monthly Payment Date, (a) the Transferor shall pay to the
Administrative Agent, for distribution to the Purchasers, all accrued and
unpaid Discount, all accrued and unpaid Fees for the calendar month (or portion
thereof) then most recently ended and all other Aggregate Unpaids (other than
Net Investment), if any, that are then due and owing, and (b) the
Transferor shall pay to the Collection Agent the accrued and unpaid Servicing
Fee for the calendar month (or portion thereof) then most recently ended.  Nothing in this Agreement or the other Transaction
Documents shall limit in any way the obligations of the Transferor to pay the
amounts set forth in this Section 2.04.

 

SECTION 2.05.    Reinvestment Procedures. 
(a) On each Business Day after the date of any Incremental Transfer
but prior to the Termination Date, and provided that Section 2.06 shall not
then be applicable, the Collection Agent shall, out of the Percentage Interest
of Collections received on or prior to such day and not previously set aside or
paid:

 

(i)            apply the balance
of such Percentage Interest of Collections remaining after payment of amounts
(if any) due and owing on such date pursuant to Section 2.04 to the
purchase of additional undivided percentage interests in each Receivable
pursuant to Section 2.02(b) hereof; and

 

(ii)           remit the balance,
if any, of such Percentage Interest of Collections remaining after the
applications provided in clause (i) to the Transferor or its designee.

 

(b)           Collections remitted to the
Transferor shall be available for the ordinary business purposes of the
Transferor or otherwise, subject to the provisions of the Transaction
Documents.

 

SECTION 2.06.    Liquidation Settlement Procedures.

 

(a) If on any
Interim Settlement Date on or prior to the Termination Date, the Percentage
Interest is greater than the Maximum Percentage Interest, then the Transferor
shall immediately pay to the Administrative Agent, for distribution to the
Purchasers, from previously received Collections, an amount that, when applied
to reduce the Net Investment, will result in a Percentage Interest less than or
equal to the Maximum Percentage Interest, to be allocated to each Purchaser
based on its Pro Rata Share.  Such amount
shall be applied to reduce the Net Investment.

 

(b)           On the Termination Date and on each
day thereafter and on each day on which a Potential Termination Event has
occurred and is continuing, the Collection Agent shall deposit to the
Administrative Agent’s Account, for the benefit of the Purchasers, the
Percentage Interest of all Collections received on such day, and the
Administrative Agent shall distribute such funds in the following order of
priority:

 

(i)            first, if TriMas
Corp. or any Affiliate of TriMas Corp. is not then the Collection Agent to the
Collection Agent’s account, in payment in full of the Servicing Fee payable to
the Collection Agent;

 

4

 

(ii)           second, in payment in
full of the accrued Discount and all Fees payable by the Transferor;

 

(iii)          third, in reduction
of the Net Investment to zero;

 

(iv)          fourth, in payment in
full of all other Aggregate Unpaids not covered in clauses (i) through
(iii) above; and

 

(v)           fifth, if TriMas
Corp. or any Affiliate or stockholder of TriMas Corp. is the Collection Agent,
to its account as Collection Agent, in payment of the Servicing Fee payable to
such Person as Collection Agent.

 

The Administrative Agent,
upon its receipt of such amounts in the Administrative Agent’s Account, shall
distribute such amounts to the Purchasers entitled thereto; provided that if the
Administrative Agent shall have insufficient funds to pay all of the above
amounts in full on any such date, the Administrative Agent shall pay such
amounts in the order of priority set forth above and, with respect to any such
category above for which the Administrative Agent shall have insufficient funds
to pay all amounts owing on such date, ratably (based on the amounts in such
categories owing to such Persons) among all such Persons entitled to payment
thereof.

 

(c)           Following the date on which the Net
Investment has been reduced to zero and all accrued Discount, Fees, Servicing
Fees and all other Aggregate Unpaids have been paid in full, (i) the
Percentage Interest shall equal zero, (ii) the Administrative Agent, on
behalf of the Purchasers, shall be considered to have reconveyed to the
Transferor all of the Purchasers’ right, title and interest in, to and under
the Receivables and Related Security, Collections and Proceeds with respect
thereto, and (iii) the Administrative Agent, on behalf of the Purchasers,
shall execute and deliver to the Transferor, at the Transferor’s expense, such
documents or instruments as are necessary to terminate the Purchasers’
respective interests in the Receivables and Related Security, Collections and
Proceeds with respect thereto.  Any such
documents shall be prepared by or on behalf of the Transferor.

 

(d)           The Transferor may, by delivery of a
Reduction Notice to the Administrative Agent and each Purchaser by telecopy, at
any time and from time to time reduce the Net Investment, in whole or in part,
upon at least one (1) Business Day’s prior notice to the Administrative
Agent before 11:00 a.m., New York City time; provided, however, that each partial
reduction of the Net Investment shall be in an amount that is an integral
multiple of $1,000,000 and not less than $2,000,000 in the aggregate.  Upon the date specified in such Reduction
Notice for such reduction, the Transferor shall immediately pay to each of the
Purchasers, from previously received Collections, an amount equal to its Pro
Rata Share of such targeted reduction.

 

SECTION 2.07.    Change of Commitments.  (a)  Reduction of Commitments.  Upon ten (10) Business Days written
notice to the Administrative Agent, the Transferor may reduce the Commitments
of the Purchasers in an aggregate amount equal to $5,000,000 or a whole
multiple of $500,000 in excess thereof. 
Upon any such reduction, the Commitment of each Purchaser shall be
reduced in an amount equal to such 
Purchaser’s Pro Rata Share of the amount of such reduction, and the Facility
Limit shall be reduced to the level of the reduced Aggregate 

 

5

 

Commitment.  Once reduced, the Commitments shall not be
subsequently reinstated.  The Commitment
of each Purchaser shall be automatically reduced to zero on the Commitment
Expiry Date.

 

(b)           Increase
of Commitments and Facility Limit.

 

(i)            The
Transferor may, by written notice to Administrative Agent, from time to time
(which notice Administrative Agent shall promptly forward to the Purchasers),
request that the Facility Limit be increased by an amount not to exceed the
Facility Limit Increment Amount in effect at such time.  Such notice shall set forth the amount of the
requested increase (which shall at least be the lesser of (x) $5,000,000
or a greater integral multiple of $500,000 or (y) equal to the remaining
Facility Limit Increment Amount) and the date on which such increase is
requested to become effective (which shall be not fewer than ten
(10) Business Days or more than sixty (60) days after the date of such
notice and which, in any event, must be at least six months prior to the
Commitment Expiry Date) and shall offer each Purchaser the opportunity to
increase its Commitment by its Pro Rata Share of the proposed increase in the Facility
Limit.  Each such Purchaser shall, by
notice to the Transferor and the Administrative Agent given not more than ten
(10) Business Days after the date on which the Administrative Agent
provides notice to the Purchasers as set forth above, either agree to increase
its Commitment by all or a portion of its Pro Rata Share of the proposed
increase (each Purchaser so agreeing, an “Increasing Purchaser”) or decline to
increase its Commitment, and any such Purchaser that does not deliver such a
notice within the foregoing period of five (5) Business Days shall be
deemed to have declined to increase its Commitment (each such Purchaser so
declining or being deemed to have declined, a “Non-Increasing Purchaser”).  If, at the end of such period of ten
(10) Business Days, all or some of such Purchasers shall have agreed
pursuant to the preceding sentence to increase their Commitments by an amount
that is less than the aggregate amount requested by the Transferor (the
difference between such requested amount and the amount aggregate amount agreed
to by such Purchasers, the “Unsubscribed
Amount”), the Transferor may arrange for one or more banks or
other entities (any such bank or other entity, an “Augmenting Purchaser”), which may
include any existing Purchaser, to extend Commitments or increase their
existing Commitments in an aggregate amount up to the Unsubscribed Amount, and
the Administrative Agent will provide to Transferor such assistance as
Transferor reasonably may request in arranging for Augmenting Purchasers.  Each proposed Augmenting Purchaser, including
any that is already a Purchaser hereunder, shall be subject to the approval of
the Administrative Agent (which approval shall not be unreasonably withheld)
and the Transferor.  Each Augmenting
Purchaser approved by the Administrative Agent and the Transferor shall execute
all such documentation as the Administrative Agent shall reasonably specify to
evidence such Augmenting Purchaser’s Commitment and/or its status as a
Purchaser hereunder.  Subject to the minimum
requirements set forth above, any increase in the Commitments may be made in an
amount which is less than the increase requested by the Transferor 

 

6

 

if the Transferor is unable to arrange for, or the Transferor chooses
not to arrange for, sufficient Augmenting Purchasers to provide the
Unsubscribed Amount.

 

(ii)           Each
of the parties hereto hereby agrees that the Administrative Agent may take any
and all actions as may be reasonably necessary to ensure that, after giving
effect to any increase in the Commitments pursuant to this
Section 2.07(b), the Transferred Interest is held by the Administrative
Agent for the benefit of the Purchasers in accordance with their respective Pro
Rata Shares.  This may be accomplished at
the discretion of the Administrative Agent by reallocation of the Transferred
Interest in its books and records.

 

(iii)          Notwithstanding
the foregoing, no increase in the aggregate Commitments shall become effective
under this Section 2.07(b) unless on the effective date of such
increase, the conditions set forth in Section 4.03 shall be satisfied and
the Administrative Agent shall have received a certificate to that effect dated
such date and executed by a Responsible Officer of the Transferor.

 

SECTION 2.08.    Fees.  To the extent
not otherwise provided for by the provisions of this Agreement, the Transferor
shall pay to the Administrative Agent, for its own account and the account of
each Purchaser, the Fees specified in the Fee Letter.

 

SECTION 2.09.    Protection of Ownership Interest of the
Purchasers.  (a) The Transferor will, and will cause
each Seller to, from time to time, at its expense, promptly execute and deliver
all instruments and documents and take all actions as may be necessary or as
the Administrative Agent may reasonably request in order to perfect or protect
the Transferred Interest or to enable the Administrative Agent or the
Purchasers to exercise or enforce any of their respective rights hereunder.  Without limiting the foregoing, the
Transferor will, and will cause each Seller to, upon the request of the
Administrative Agent or any of the Purchasers, in order to accurately reflect
this purchase and sale transaction, (x) execute and file such financing or
continuation statements or amendments thereto or assignments thereof (as
permitted pursuant to Section 10.06 hereof) as may be requested by the
Administrative Agent for the benefit of the Purchasers and (y) mark its
respective master data processing records and other documents with a legend
describing the conveyance to the Transferor (in the case of the Sellers) and
the Administrative Agent for the benefit of the Purchasers, of the Transferred
Interest.  The Transferor shall, and will
cause the Sellers to, upon request of the Administrative Agent, obtain such
additional search reports as the Administrative Agent, for the benefit of the
Purchasers, shall reasonably request.  To
the fullest extent permitted by applicable law, the Administrative Agent shall
be permitted to sign (if required) and file continuation statements and
amendments thereto and assignments thereof without the Transferor’s or any
Seller’s signature.  Carbon, photostatic
or other reproduction of this Agreement or any financing statement shall be
sufficient as a financing statement.  The
Administrative Agent is hereby authorized to file a financing statement naming
Transferor as the debtor and/or seller and describing the collateral covered
thereby as “all personal property and the proceeds thereof”, “all assets and
the proceeds thereof” or words of similar effect.  The Administrative Agent and the Purchasers
shall have, in addition to the rights and remedies that they may have under
this Agreement, all other rights and remedies provided to a secured creditor
under the UCC and other applicable law, which rights and remedies shall be
cumulative.

 

7

 

The Transferor shall not,
and shall not permit any Seller to, change its respective name (within the
meaning of Section 9-507(c) of the Relevant UCC), or jurisdiction of
organization, form of organization, taxpayer identification number or state
organizational number, unless it shall have: (i) given the Administrative
Agent at least thirty (30) days’ prior notice thereof and (ii) prepared at
the Transferor’s expense and delivered to the Administrative Agent all
financing statements, instruments and other documents necessary to preserve and
protect the Transferred Interest or requested by the Administrative Agent in connection
with such change.  Any filings under the
Relevant UCC or otherwise that are occasioned by such change shall be made at
the expense of the Transferor.

 

(b)           The Collection Agent shall instruct,
and shall cause the other Sellers to instruct, all Obligors to cause all
Collections to be deposited directly with a Lock-Box Bank.  Any Lock-Box Account maintained by a Lock-Box
Bank pursuant to the related Lock-Box Agreement shall be under the exclusive
“control” (within the meaning of Section 9-104 of the Relevant UCC) of the
Administrative Agent which is hereby granted to the Administrative Agent by the
Transferor.  The Collection Agent shall
be permitted to give instructions to the Lock-Box Banks prior to delivery of a
Collection Notice by the Administrative Agent. 
The Collection Agent shall not add any bank as a Lock-Box Bank to those
listed on Exhibit B attached hereto unless such bank has entered into a
Lock-Box Agreement.  The Collection Agent
shall not terminate any bank as a Lock-Box Bank unless the Administrative Agent
shall have received sixty (60) days’ prior notice of such termination.  If the Transferor, any Seller or the
Collection Agent receives any Collections, the Transferor or the Collection
Agent, as applicable, shall, or shall cause such Seller to, remit such
Collections to a Lock-Box Account within one (1) Business Day of receipt
thereof.

 

(c)           The Transferor hereby pledges,
assigns and transfers to the Administrative Agent, for the benefit of the
Purchasers, and hereby creates and grants to the Administrative Agent, for the
benefit of the Purchasers, a security interest in the Lock-Box Accounts and all
cash, checks and other negotiable instruments, funds and other evidences of
payment held therein.

 

SECTION 2.10.    Deemed Collections; Application of Payments.  (a) If on
any day a Receivable becomes a Diluted Receivable, the Transferor shall be
deemed to have received on such day a Collection of such Receivable in the
amount of such reduction or cancellation, and the Transferor shall pay to the
Collection Agent an amount equal to such reduction or cancellation (to the
extent not netted against the Purchase Price on such day pursuant to
Section 3.01 of the Receivables Purchase Agreement).  Any such amount shall be applied by the
Collection Agent as a Collection in accordance with Section 2.05 or 2.06
hereof, as applicable.  The Net
Investment shall be reduced by the amount of such payment actually received by
the Administrative Agent.

 

(b)           If on any day any of the
representations or warranties in Article III was or becomes untrue with
respect to a Receivable or the nature of the 
Administrative Agent’s interest therein (each such Receivable, a “Fully Diluted Receivable”),
the Transferor shall be deemed to have received on such day a Collection of
such Receivable in full and the Transferor shall, on such day, pay to the
Collection Agent an amount equal to the Outstanding Balance of such Receivable
and such amount shall be allocated and applied by the Collection Agent as a
Collection allocable to the Transferred Interest in accordance with
Section 2.05 or 2.06 hereof, as 

 

8

 

applicable.  The Net Investment shall be reduced by the
amount of such payment actually received by the Administrative Agent.

 

(c)           Any payment by an Obligor in respect
of any indebtedness owed by it to the Transferor or the Seller shall, except as
provided in paragraphs (a) and (b) of this Section 2.10 or as
otherwise specified by such Obligor or otherwise required by contract or law
and unless otherwise instructed by the Purchasers, be applied as a Collection
of any Receivable of such Obligor included in the Transferred Interest (in
order of the age of such Receivable, starting with the oldest such Receivable)
to the extent of any amounts then due and payable thereunder before being
applied to any other receivable or other indebtedness of such Obligor.

 

SECTION 2.11.    Payments and Computations, etc.  All amounts to
be paid or deposited by the Transferor or the Collection Agent hereunder shall be
paid or deposited in accordance with the terms hereof no later than
12:00 p.m. (New York City time) on the day when due in immediately
available funds; if such amounts are payable to any Purchaser, they shall be
paid or deposited to the Administrative Agent’s Account, until otherwise
notified by the Administrative Agent.  No
later than 3:00 p.m. (New York City time) on the date of any Incremental
Transfer hereunder, the applicable Purchasers will make available to the
Transferor, in immediately available funds, the Transfer Price for such
Incremental Transfer on such day by remitting such amount to an account of the
Transferor specified in the related notice of Transfer.  Whenever any payment or deposit to be made hereunder
shall be due on a day other than a Business Day, such payment or deposit shall
be made on the next succeeding Business Day and such extension of time shall be
included in the computation of such payment or deposit.  Any computations by the Administrative Agent
of amounts payable by the Transferor hereunder shall be binding upon the
Transferor absent manifest error.

 

SECTION 2.12.    Settlement Statements.

 

(a)           Interim
Reports. On each Interim Reporting Date, the Collection Agent shall
deliver to the Administrative Agent and the Transferor an Interim Report as of
the close of business on the immediately preceding Business Day.  The Interim Report may be delivered in an
electronic format mutually agreed upon by the Collection Agent and the
Administrative Agent, or pending such agreement, by facsimile.

 

(b)           Monthly
Report. On each Monthly Reporting Date, the Collection Agent shall
deliver to the Administrative Agent and the Transferor a monthly report,
substantially in the form of Exhibit E (the “Monthly Report”).

 

SECTION 2.13.    [Intentionally Deleted.]

 

SECTION 2.14.    Right of Setoff.  Each of the
Purchasers is hereby authorized (in addition to any other rights it may have)
at any time after the occurrence of the Termination Date, or during the
continuation of a Termination Event, to set off, appropriate and apply (without
presentment, demand, protest or other notice which are hereby expressly waived)
any deposits and any other indebtedness held or owing by such Purchaser to, or
for the account of, the Transferor against the amount of the Aggregate Unpaids
owing by the Transferor to such Purchaser (even if contingent or unmatured).

 

9

 

SECTION 2.15.    Sharing of Payments, etc.  If any
Purchaser (for purposes of this Section 2.15 only, a “Recipient”) shall
obtain any payment (whether voluntary, involuntary, through the exercise of any
right of setoff, or otherwise) on account of any interest in the Transferred
Interest owned by it in excess of its Pro Rata Share of payments on account of
any interest in the Transferred Interest obtained by the Purchasers entitled
thereto, such Recipient shall forthwith purchase from the Purchasers entitled
to a share of such amount participations in the percentage interests owned by
such Persons as shall be necessary to cause such Recipient to share the excess
payment ratably with each such other Person entitled thereto; provided, however, that
if all or any portion of such excess payment is thereafter recovered from such
Recipient, such purchase from each such other Person shall be rescinded and
each such other Person shall repay to the Recipient the purchase price paid by
such Recipient for such participation to the extent of such recovery, together
with an amount equal to such other Person’s Pro Rata Share (according to the
proportion of (a) the amount of such other Person’s required payment to
(b) the total amount so recovered from the Recipient) of any interest or
other amount paid or payable by the Recipient in respect of the total amount so
recovered.

 

SECTION 2.16.    [Intentionally Deleted].

 

SECTION 2.17.    [Intentionally Deleted].

 

SECTION 2.18.    Illegality. 
(a) Notwithstanding any other provision herein, if, after the
Closing Date, the adoption of any Law or bank regulatory guideline or any
amendment or change in the interpretation of any existing or future Law or bank
regulatory guideline by any Official Body charged with the administration,
interpretation or application thereof, or the compliance with any directive of
any Official Body (in the case of any bank regulatory guideline, whether or not
having the force of Law), shall make it unlawful for any Purchaser to fund or
maintain an LMIR Tranche as contemplated by this Agreement, (i) such
Purchaser shall promptly, and in any event within forty-five (45) days after
receiving actual knowledge thereof, deliver a certificate to the Transferor
(with a copy to the Administrative Agent) setting forth the basis for such
illegality, which certificate shall be conclusive absent manifest error, and
(ii) for so long as such illegality continues, the Funded Amount of such
Purchaser shall be maintained as an ABR Tranche.

 

If circumstances
subsequently change so that it is no longer unlawful for an affected Purchaser
to acquire or maintain an LMIR Tranche as contemplated hereunder, such
Purchaser will, as soon as reasonably practicable after such Purchaser knows of
such change in circumstances, notify the Transferor and the Administrative
Agent, and upon receipt of such notice, the Funded Amount of such Purchaser
shall be maintained as an LMIR Tranche.

 

(b)           Each Purchaser agrees that, upon the
occurrence of any event giving rise to the operation of
Section 2.18(a) with respect to such Purchaser, it will, if requested
by the Transferor and to the extent permitted by law or by the relevant
Official Body, endeavor in good faith to change the office at which it books
its portions of LMIR Tranches hereunder if such change would make it lawful for
such Purchasers to continue to acquire or to maintain its acquisition of
portions of LMIR Tranches hereunder; provided, however, that such change may be
made in such manner that such Purchaser, in its sole determination, suffers no
unreimbursed cost or expense or any other disadvantage whatsoever.

 

10

 

 

SECTION 2.19.    Inability to Determine the LMIR. 
If, at any time:

 

(1)           the Administrative Agent shall have
determined (which determination in the absence of manifest error shall be
conclusive and binding upon the Transferor) that, by reason of circumstances
affecting the interbank Eurodollar market, either (a) deposits of a type
appropriate to match-fund its investment at the LMIR are not available, or
(b) adequate and reasonable means do not exist for ascertaining the LMIR;
or

 

(2)           the Administrative Agent shall have
received notice from the Required Purchasers that the LMIR will not adequately
and fairly reflect the cost to such Purchasers (as conclusively certified by
such Purchasers) of purchasing or maintaining their affected portions of LMIR
Tranches;

 

then, in either such event, the Administrative Agent
shall give telecopy or telephonic notice thereof (confirmed in writing) to the
Transferor and the Purchasers as soon as practicable (but, in any event, within
ten (10) days after such determination or notice, as applicable)
thereafter.  Until such notice has been
withdrawn by the Administrative Agent, no further LMIR Tranches shall be
made.  The Administrative Agent agrees to
withdraw any such notice as soon as reasonably practicable after the Administrative
Agent is notified of a change in circumstances which makes such notice
inapplicable.

 

SECTION 2.20.    Indemnification.

 

(a)  Indemnities
by the Transferor.  Without
limiting any other rights which the Administrative Agent or the Purchasers may
have hereunder or under applicable law, the Transferor hereby agrees to
indemnify the Purchasers and the Administrative Agent and any successors and
permitted assigns and their respective officers, directors, agents and
employees (collectively,
“Indemnified Parties”) from and against any and all damages,
losses, claims, liabilities, deficiencies, costs, disbursements and expenses,
including, without limitation, interest, penalties, amounts paid in settlement
and reasonable attorneys’ fees (including allocated costs of attorneys who may
be employees of the Administrative Agent) (all of the foregoing being
collectively referred to as “Indemnified Amounts”) awarded against or incurred by
any of them in any action or proceeding between the Transferor, the Collection
Agent in such capacity or the Sellers and any of the Indemnified Parties or
between any of the Indemnified Parties and any third party or otherwise arising
out of or as a result of this Agreement, the other Transaction Documents, the
ownership or maintenance, either directly or indirectly, by the Administrative
Agent or any Purchaser of the Transferred Interest or any of the other
transactions contemplated hereby or thereby, excluding, however,
(i) Indemnified Amounts to the extent relating to or resulting from
(x) gross negligence or willful misconduct on the part of an Indemnified
Party or (y) recourse (except as otherwise specifically provided in this
Agreement) for uncollectible Receivables or (ii) all taxes (other than
Indemnified Taxes).  Without limiting the
generality of the foregoing, the Transferor shall indemnify each Indemnified
Party for Indemnified Amounts (without duplication of amounts for which any
Indemnified Party is effectively held harmless under any other provision
hereof) relating to or resulting from:

 

(A)          any
representation or warranty made in writing by the Transferor, the Guarantor,
the Collection Agent or any Seller or any officers of the Transferor, the
Guarantor, the

 

11

 

Collection Agent or any Seller under or in connection
with this Agreement, any of the other Transaction Documents, any Settlement
Statement or any other information or report delivered by any of them pursuant
hereto or thereto, which shall have been false or incorrect in any material
respect when made or deemed made;

 

(B)           the
failure by the Transferor, the Guarantor, the Collection Agent or any Seller to
comply with any applicable law, rule or regulation with respect to any
Receivable or the related Contract, or the nonconformity of any Receivable or
the related Contract with any such applicable law, rule or regulation;

 

(C)           the
failure to either (x) vest and maintain vested in the Administrative
Agent, for the benefit of the Purchasers, an undivided first priority, perfected
percentage ownership interest, to the extent of the Transferred Interest, in
the Receivables and Related Security, Collections and Proceeds with respect
thereto, free and clear of any Adverse Claim or (y) to create or maintain
a valid and perfected first priority security interest in favor of the
Administrative Agent, for the benefit of the Purchasers, in the Transferor’s
interest in the Receivables and Related Security, Collections and Proceeds with
respect thereto, free and clear of any Adverse Claim (other than any Adverse
Claim created by or through the Purchasers);

 

(D)          the
failure to file, or any delay in filing, financing statements, continuation
statements, or other similar instruments or documents under the Relevant UCC or
other applicable laws with respect to any of the Receivables or Related
Security, Collections and Proceeds with respect thereto;

 

(E)           any
dispute, claim, offset or defense (other than discharge in bankruptcy of the
Obligor) of the Obligor to the payment of any Receivable (including, without
limitation, a defense based on such Receivable or the related Contract not
being a legal, valid and binding obligation of such Obligor enforceable against
it in accordance with its terms), or any other claim resulting from the sale of
merchandise or services related to such Receivable or the furnishing or failure
to furnish such merchandise or services;

 

(F)           any
products liability claim or personal injury or property damage suit or other
similar or related claim or action of whatever sort arising out of or in
connection with merchandise or services which are the subject of any
Receivable;

 

(G)           the
transfer of an ownership interest in any Receivable other than an Eligible
Receivable pursuant to the Transaction Documents;

 

(H)          the
failure by any of the Transferor, the Guarantor, TriMas Corp. as the Collection
Agent or any Seller to comply with any term, provision or covenant contained in
this Agreement or any of the other Transaction Documents to which it is a party
or to perform any duty or obligation in accordance with the provisions hereof
or thereof or to perform any of its duties or obligations under the Contracts;

 

(I)            the
Percentage Interest exceeding the Maximum Percentage Interest at any time on or
prior to the Termination Date;

 

12

 

(J)            the
failure of any Seller or the Guarantor to pay when due any taxes, including
without limitation, sales, excise or personal property taxes payable in
connection with any of the Receivables with respect to which an Indemnified
Party may be held liable as a transferee of such Receivables;

 

(K)          any
repayment by any Indemnified Party of any amount previously distributed in
reduction of Net Investment which such Indemnified Party believes in good faith
is required to be made;

 

(L)           the
commingling by the Transferor, the Guarantor, any Seller or TriMas Corp. as the
Collection Agent of Collections of Receivables at any time with other funds;

 

(M)         any
investigation, litigation or proceeding related to this Agreement, any of the
other Transaction Documents, the use of proceeds of Transfers by the Transferor
or any Seller, the ownership of Transferred Interests, or any Receivable,
Related Security or Contract;

 

(N)          the
failure of any Lock-Box Bank to remit any amounts held in the Lock-Box Accounts
pursuant to the instructions of the Collection Agent, the Transferor, the
Sellers or the Administrative Agent (to the extent such Person is entitled to
give such instructions in accordance with the terms hereof and of any applicable
Lock-Box Agreement) whether by reason of the exercise of set-off rights or
otherwise;

 

(O)          any
inability to obtain any judgment in or utilize the court or other adjudication
system of, any state in which an Obligor may be located as a result of the
failure of the Transferor or the Sellers to qualify to do business or file any
notice of business activity report or any similar report;

 

(P)           any
failure of the Transferor to give reasonably equivalent value to the applicable
Seller in consideration of the purchase by the Transferor from such Seller of
any Receivable, or any attempt by any Person to void, rescind or set aside any
such transfer under statutory provisions or common law or equitable action,
including, without limitation, any provision of the Bankruptcy Code; or

 

(Q)          any
action taken by the Transferor, any Seller, the Guarantor or the Collection
Agent in the enforcement or collection of any Receivable; provided, however,
that the Transferor shall not be liable for Indemnified Amounts attributable to
the fraud, gross negligence, breach of fiduciary duty or willful misconduct of
any Collection Agent in the enforcement or collection of any Receivable if such
Collection Agent is not TriMas Corp. or an Affiliate or stockholder of TriMas
Corp.

 

(b)           Indemnities by the Collection Agent.  Without limiting any other rights which the
Administrative Agent or the Purchasers may have hereunder or under applicable
law, the Collection Agent hereby agrees to indemnify the Indemnified Parties
from and against any and all Indemnified Amounts awarded against or incurred by
any of them in any action or proceeding between the Collection Agent in such
capacity and any of the Indemnified Parties or between any of the Indemnified
Parties and any third party or otherwise arising out of or as a result of this
Agreement, the other Transaction Documents, the ownership or maintenance,
either directly or 

 

13

 

indirectly, by the Administrative Agent or any
Purchaser of the Transferred Interest or any of the other transactions
contemplated hereby or thereby, relating to or resulting from:

 

(A)          any
representation or warranty made in writing by the Collection Agent or any
officers of the Collection Agent under or in connection with this Agreement,
any of the other Transaction Documents, any Settlement Statement or any other
information or report delivered by the Collection Agent pursuant hereto or
thereto, which shall have been false or incorrect in any material respect when
made or deemed made;

 

(B)           the
failure by the Collection Agent to comply with any applicable law, rule or
regulation in collecting or enforcing any Receivable or the related Contract;

 

(C)           the
failure by any of TriMas Corp. or any of its Affiliates as the Collection Agent
to comply with any term, provision or covenant contained in this Agreement or
any of the other Transaction Documents to which it is a party or to perform any
duty or obligation in accordance with the provisions hereof or thereof;

 

(D)          the
commingling by TriMas Corp. as the Collection Agent of Collections of
Receivables at any time with other funds;

 

(E)           any
investigation, litigation or proceeding related to this Agreement, any of the
other Transaction Documents, the use of proceeds of Transfers by the Transferor
or any Seller, the ownership of Transferred Interests, or any Receivable,
Related Security or Contract; or

 

(F)           any
action taken by the Collection Agent in the enforcement or collection of any
Receivable; provided, however, that the Collection Agent shall not be liable
for Indemnified Amounts attributable to the fraud, gross negligence, breach of
fiduciary duty or willful misconduct of any Collection Agent in the enforcement
or collection of any Receivable if such Collection Agent is not TriMas Corp. or
an Affiliate or stockholder of TriMas Corp.;

 

excluding, however, in each of the foregoing cases,
(i) Indemnified Amounts to the extent relating to or resulting from
(x) gross negligence or willful misconduct on the part of an Indemnified
Party or (y) recourse (except as otherwise specifically provided in this
Agreement) for uncollectible Receivables or (ii) all taxes (other than
Indemnified Taxes).

 

SECTION 2.21.    Indemnity for Reserves and Expenses.  (a) If
after the date hereof, the adoption of any Law or bank regulation or regulatory
guideline or any amendment or change in the interpretation of any existing or
future Law or bank regulation or regulatory guideline by any Official Body
charged with the administration, interpretation or application thereof, or the
compliance with any directive of any Official Body (in the case of any bank
regulation or regulatory guideline, whether or not having the force of Law),
other than Laws, interpretations, guidelines or directives relating to Taxes:

 

(i)            shall impose, modify or deem
applicable any reserve, special deposit or similar requirement (including,
without limitation, any such requirement imposed by the Board of Governors of
the Federal Reserve System) against assets of, deposits with or for 

 

14

 

the account of, or credit
extended by, any Indemnified Party or shall impose on any Indemnified Party or
on the United States market for certificates of deposit or the London interbank
market any other condition affecting this Agreement, the other Transaction
Documents, the ownership, maintenance or financing of the Transferred Interest,
the Receivables or payments of amounts due hereunder or its obligation to
advance funds hereunder or under the other Transaction Documents; or

 

(ii)           imposes upon any Indemnified Party
any other expense (including, without limitation, reasonable attorneys’ fees
and expenses, and expenses of litigation or preparation therefor in contesting
any of the foregoing) with respect to this Agreement, the other Transaction
Documents, the ownership, maintenance or financing of the Transferred Interest,
the Receivables or payments of amounts due hereunder or its obligation to
advance funds hereunder or otherwise in respect of this Agreement, the other
Transaction Documents, the ownership, maintenance or financing of the
Transferred Interests or the Receivables;

 

and the result of any of the foregoing is to increase
the cost to such Indemnified Party with respect to this Agreement, the other
Transaction Documents, the ownership, maintenance or financing of the
Transferred Interest, the Receivables, the obligations hereunder, the funding
of any Purchases hereunder or under the other Transaction Documents, by an
amount deemed by such Indemnified Party to be material, then, within ten
(10) Business Days after demand by such Indemnified Party through the
Administrative Agent, acting at the direction of the applicable Purchaser, the
Transferor shall pay to the Administrative Agent, for the benefit of such
Indemnified Party, such additional amount or amounts (other than with respect
to taxes) as will compensate such Indemnified Party for such increased cost or
reduction; provided that
no such amount shall be payable with respect to any period commencing more than
two hundred seventy (270) days prior to the date the Administrative Agent,
acting at the direction of the applicable Purchaser, first notifies the
Transferor of its intention to demand compensation therefor under this
Section 2.21; provided,
further, that if such change in Law, rule or regulation
giving rise to such increased costs or reductions is retroactive, then such
270-day period shall be extended to include the period of retroactive effect
thereof.  In making demand hereunder, the
applicable Indemnified Party shall submit to the Transferor a certificate as to
such increased costs incurred which shall provide in reasonable detail the
basis for such claim.

 

(b)           If any Indemnified Party shall have
determined that after the date hereof, the adoption of any applicable Law or
bank regulation or regulatory guideline regarding capital adequacy, or any
change therein, or any change in the interpretation thereof by any Official
Body, or any directive regarding capital adequacy (in the case of any bank regulatory
guideline, whether or not having the force of law) of any such Official Body,
has or would have the effect of reducing the rate of return on capital of such
Indemnified Party (or its parent) as a consequence of such Indemnified Party’s
obligations hereunder or with respect hereto to a level below that which such
Indemnified Party (or its parent) could have achieved but for such adoption,
change, request or directive (taking into consideration its policies with
respect to capital adequacy) by an amount deemed by such Indemnified Party to
be material, then from time to time, within ten (10) Business Days after
demand by such Indemnified Party through the Administrative Agent, acting at
the direction of the applicable Purchaser, the Transferor shall pay to the
Administrative Agent, for the benefit of such Indemnified Party, such
additional

 

15

 

amount or amounts (other than with respect to taxes)
as will compensate such Indemnified Party (or its parent) for such reduction; provided that no such
amount shall be payable with respect to any period commencing more than two
hundred seventy (270) days prior to the date the Administrative Agent first
notifies the Transferor of its intention to demand compensation therefor under
this Section 2.21(b); provided,
further, that if such change in Law, rule or regulation
giving rise to such increased costs or reductions is retroactive, then such
270-day period shall be extended to include the period of retroactive effect thereof.  In making demand hereunder, the applicable
Indemnified Party shall submit to the Transferor a certificate as to such
increased costs incurred which shall provide in reasonable detail the basis for
such claim.

 

SECTION 2.22.    Indemnity for Taxes.  (a)  All
payments made by the Transferor or the Collection Agent to the Administrative
Agent for the benefit of the Purchasers under this Agreement and any other
Transaction Document shall be made free and clear of, and without deduction or
withholding for or on account of any Indemnified Taxes.  If any such Indemnified Taxes are required to
be withheld from any amounts payable to the Administrative Agent or any
Indemnified Party hereunder, (i) the amounts so payable to the
Administrative Agent or such Indemnified Party shall be increased to the extent
necessary to yield to the Administrative Agent or such Indemnified Party (after
payment of all Indemnified Taxes) all amounts payable hereunder at the rates or
in the amounts specified in this Agreement and the other Transaction Documents
and (ii) the Transferor or the Collection Agent, as the case may be, shall
make such deductions or withholdings and shall pay the amount so deducted or
withheld to the applicable Official Body in accordance with the applicable law.  The Transferor shall indemnify the
Administrative Agent or any Indemnified Party for the full amount of any
Indemnified Taxes paid by the Administrative Agent or the Indemnified Party
within ten (10) Business Days after the date of written demand therefor by
the Administrative Agent or such Indemnified Party if the Administrative Agent
or such Indemnified Party, as the case may be, has delivered to the Transferor
a certificate signed by an officer of the Administrative Agent or such
Indemnified Party, as the case may be, setting forth in reasonable detail the
amount so paid and the computations made to determine such amount.  Such certificate shall be conclusive absent
manifest error.

 

(b)           Each Indemnified Party that is not a
United States person (within the meaning of Section 7701(a)(30) of the
Code) (a “United States
Person”) shall:

 

(i)            at the time such Indemnified Party
becomes a party to this Agreement or the Transaction Documents, deliver to the
Transferor and the Administrative Agent (A) two duly completed copies of
IRS Form W-8ECI, or successor applicable form, as the case may be, and
(B) an IRS Form W-8BEN or W-9, or successor applicable form, as the
case may be;

 

(ii)           deliver to the Transferor and the
Administrative Agent two (2) further copies of any such form or
certification on or before the date that any such form or certification expires
or becomes obsolete and after the occurrence of any event requiring a change in
the most recent form previously delivered by it to the Transferor or the Administrative
Agent; and

 

16

 

(iii)          obtain such extensions of time for
filing and complete such forms or certifications as may reasonably be requested
by the Transferor or the Administrative Agent;

 

unless, in the case of (ii) and (iii) above,
any change in treaty, law regulation, governmental rule, guideline order, or
official application or official interpretation thereof has occurred prior to
the date on which any such delivery would otherwise be required which renders
all such forms inapplicable or which would prevent such Indemnified Party from
duly completing and delivering any such form with respect to it, and such
Indemnified Party so advises the Transferor and the Administrative Agent.  Each such Indemnified Party that is not a
United States person (A) shall certify (i) in the case of an IRS
Form W-8ECI, or successor applicable form, that it is entitled to receive
payments under this Agreement and the other Transaction Documents without deduction
or withholding of any United States federal income taxes and (ii) in the
case of an IRS Form W-8BEN or IRS Form W-9, or successor applicable
form, that it is entitled to an exemption from United States backup withholding
tax and (B) shall agree to provide any other certification and
documentation as required by the applicable law that is reasonably requested by
the Transferor, the Sellers or the Collection Agent.  Each Person that is a Purchaser or
Participant hereunder, or which otherwise becomes a party to this Agreement and
the other Transaction Documents as a Purchaser, shall, prior to the
effectiveness of such assignment, participation or addition, as applicable, be
required to provide all of the forms and statements required pursuant to this
Section 2.22.

 

SECTION 2.23.    Other Costs, Expenses and Related Matters.  (a) The
Transferor agrees, upon receipt of a written invoice, to pay or cause to be
paid, and to save the Administrative Agent and the Purchasers  harmless against liability for the payment
of, all reasonable out-of-pocket expenses (including, without limitation,
reasonable attorneys’, accountants’, rating agencies’ and other third parties’
fees and expenses, any filing fees and expenses incurred by officers or
employees of the Administrative Agent and/or the Purchasers) or intangible,
documentary or recording taxes incurred by or on behalf of the Administrative
Agent and the Purchasers (i) in connection with the negotiation,
execution, delivery and preparation of this Agreement, the other Transaction Documents
and any documents or instruments delivered pursuant hereto and thereto and the
transactions contemplated hereby or thereby (including, without limitation, the
perfection or protection of the Transferred Interest) and
(ii) (A) relating to any amendments, waivers or consents under this
Agreement and the other Transaction Documents, (B) arising in connection
with the Administrative Agent’s or the Purchasers’ enforcement or preservation
of rights (including, without limitation, the perfection and protection of the
Transferred Interest under this Agreement), or (C) arising in connection
with any audit, dispute, disagreement, litigation or preparation for litigation
involving this Agreement or any of the other Transaction Documents (all of such
amounts, collectively, “Transaction
Costs”). All Transaction Costs owed by the Transferor pursuant
to this subsection 2.23(a) shall be payable in accordance with
Section 2.05 and 2.06.

 

(b)           [Intentionally deleted].

 

(c)           The Administrative Agent, at the
request of any Purchaser, will within forty-five (45) days after receipt of
notice of any event occurring after the date hereof which will entitle an
Indemnified Party to compensation pursuant to this Article II, notify the
Transferor in writing of 

 

17

 

such event.  Any
notice by a Purchaser claiming compensation under this Article II and
setting forth the additional amount or amounts to be paid to it hereunder shall
be conclusive in the absence of manifest error, provided that such claim is made in good
faith and on a reasonable basis.  In
determining such amount, the applicable Purchaser or any applicable Indemnified
Party may use any reasonable averaging and attributing methods.

 

(d)           If the Transferor is required to pay
any additional amount to any Purchaser pursuant to Sections 2.21 or 2.22, then
such Purchaser shall use reasonable efforts (which shall not require such
Purchaser to incur an unreimbursed loss or unreimbursed cost or expense or
otherwise take any action inconsistent with its internal policies or legal or
regulatory restrictions or suffer any disadvantage or burden reasonably deemed
by it to be significant) (A) to file any certificate or document
reasonably requested in writing by the Transferor or (B) to assign its
rights and delegate and transfer its obligations hereunder to another of its
offices, branches or affiliates, if such filing or assignment would reduce
amounts payable pursuant to Sections 2.21 or 2.22, as the case may be, in the
future.

 

SECTION 2.24.    Purchasers.  Each Purchaser
is hereby authorized to record on each Business Day its Funded Amount and the
aggregate amount of Discount and Fees accruing with respect thereto on such
Business Day.  Any such recordations by a
Purchaser, absent manifest error, shall constitute prima facie evidence of the
accuracy of the information so recorded. 
Each of the Purchasers will report the amounts due to it for the prior
Calculation Period to the Transferor, the Collection Agent and the
Administrative Agent not later than two (2) Business Days prior to the
related Interim Settlement Date or Monthly Payment Date, as applicable.  Furthermore, the Purchaser will maintain
records sufficient to identify the percentage interest of such Purchaser in the
Receivables and any amounts owing thereunder.

 

SECTION 2.25.    Use of Historical Data.  Where
necessary to calculate any ratios or other amounts under this Agreement with
reference to periods prior to the Initial Incremental Transfer Date, historical
data shall be used.

 

ARTICLE III

Representations and Warranties

 

SECTION 3.01.    Representations and Warranties of the
Transferor.  The Transferor hereby represents and warrants
to the Administrative Agent and the Purchasers that:

 

(a)           Corporate
Existence and Power.  The
Transferor is a corporation duly incorporated, validly existing and in good
standing under the laws of the State of Nevada and has all corporate power and
all material governmental licenses, authorizations, consents and approvals
required to carry on its business in each jurisdiction in which its business is
now conducted.  The Transferor is duly
qualified (or has duly applied for such qualification) to do business in, and
is in good standing in, every other jurisdiction in which the nature of its
business requires it to be so qualified, except where the failure to be so
qualified or in good standing would not have a Material Adverse Effect.

 

18

 

(b)           Corporate
and Governmental Authorization; Contravention.  The execution, delivery and performance by
the Transferor of this Agreement and the other Transaction Documents to which
the Transferor is a party are within the Transferor’s corporate powers, have
been duly authorized by all necessary corporate action, require no action by or
in respect of, or filing with, any Official Body or official thereof, and do
not contravene any provision of applicable law, rule or regulation or of
the Certificate of Incorporation or Bylaws of the Transferor or constitute a
default under any agreement or any judgment, injunction, order, writ, decree or
other instrument binding upon the Transferor or result in the creation or
imposition of any Adverse Claim on the assets of the Transferor (except as
contemplated by Section 2.09 hereof).

 

(c)           Binding
Effect.  Each of this
Agreement and the other Transaction Documents to which the Transferor is a
party constitutes the legal, valid and binding obligation of the Transferor,
enforceable against it in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or
other similar laws affecting the rights of creditors generally and general
equitable principles (whether considered in a proceeding at law or in equity).

 

(d)           Perfection.  Immediately preceding each Transfer
hereunder, the Transferor shall be the owner of all of the Receivables, free
and clear of all Adverse Claims (except as contemplated by Section 2.09
hereof and other than Liens for taxes or assessments or other governmental charges
payable by the Transferor that are not yet due and payable).  On or prior to each Transfer and each
recomputation of the Transferred Interest, all financing statements and other
documents required to be recorded or filed in order to perfect and protect the
Transferred Interest against all creditors of, and purchasers from, the
Transferor and the Sellers will have been duly filed in each filing office
necessary for such purpose, and all filing fees and taxes, if any, payable in
connection with such filings shall have been paid in full.

 

(e)           Accuracy
of Information.  All
information heretofore furnished by or on behalf of the Transferor or the
Collection Agent on its behalf (including, without limitation, the  Settlement Statements, any other reports delivered
pursuant to the terms of this Agreement and the Transferor’s financial
statements) to any Purchaser or the Administrative Agent for purposes of, or in
connection with, this Agreement and the other Transaction Documents are, and
all such information hereafter furnished by or on behalf of the Transferor to
any Purchaser or the Administrative Agent will be, true and accurate in every
material respect, on the date such information is stated or certified.

 

(f)            Tax
Status.  The Transferor has
filed all material tax returns (Federal, state and local) required to be filed
and has paid or made adequate provision for the payment of all material taxes,
assessments and other governmental charges other than taxes or filings
contested in good faith or taxes which are not yet due and payable, and for
which adequate reserves have been established in accordance with GAAP
consistently applied.

 

(g)           Action,
Suits.  There are no actions,
suits or proceedings pending or, to the knowledge of the Transferor threatened,
against or affecting the Transferor or its properties, in or before any court,
arbitrator or other Official Body, which could reasonably be expected,

 

19

 

individually or in the aggregate, to have a Material
Adverse Effect, except as set forth in the TriMas Corp. Form 10-Q for the
period ended September 30, 2009.

 

(h)           Use
of Proceeds.  No proceeds of
any Transfer will be used by the Transferor to acquire any security in any
transaction which violates Regulation T, U or X of the Federal Reserve Board.

 

(i)            Jurisdiction
of Organization, Etc.  The
principal place of business and chief executive office of the Transferor are
located at the address of the Transferor indicated in Section 10.03
hereof, and the jurisdiction of organization and offices where the Transferor
keeps all its Records, are located at the address(es) described on Schedule I
to the Receivables Purchase Agreement or such other locations notified to the
Administrative Agent in accordance with Section 2.09 hereof in
jurisdictions where all action required by Section 2.09 hereof has been
taken and completed.

 

(j)            Good
Title.  Upon each Transfer and
each recomputation of the Transferred Interest, the Administrative Agent, on
behalf of the Purchasers, shall acquire (A) a valid and perfected first
priority undivided percentage ownership interest to the extent of the
Transferred Interest or (B) a first priority perfected security interest
in each Receivable that exists on the date of such Transfer and recomputation
and in the Related Security, Collections and Proceeds with respect thereto, in
either case free and clear of any Adverse Claim except as contemplated by
Section 2.09 hereof and other than Liens for taxes or assessments or other
governmental charges payable by the Transferor that are not yet due and
payable.

 

(k)           Trade
Names, etc. As of the date hereof: (i) the Transferor’s chief
executive office is located at the address for notices set forth in
Section 10.03 hereof; (ii) the Transferor has no subsidiaries or
divisions; and (iii) the Transferor has, within the last five
(5) years, operated under no trade name, and, within the last five
(5) years, has not changed its name, merged with or into or consolidated
with any other corporation or been the subject of any proceeding under Title
11, United States Code (Bankruptcy).

 

(l)            Nature
of Receivables.  Each
Receivable (x) represented by the Transferor or the Collection Agent to be
an Eligible Receivable (including in any Monthly Report or other report delivered
pursuant to Section 2.12 hereof) or (y) included in the calculation
of the Net Receivables Balance in fact satisfies at such time the definition of
“Eligible Receivable.”

 

(m)          Coverage
Requirement; Amount of Receivables. 
The Percentage Interest does not exceed the Maximum Percentage
Interest.  As of November 22, 2009,
the aggregate Outstanding Balance of the Receivables in existence was
$77,890,000, and the Net Receivables Balance was not less than $59,887,000.

 

(n)           Credit
and Collection Policy.  Since the
Closing Date, there have been no material changes in the Credit and Collection
Policy, other than as permitted hereunder. 
Since the Closing Date, no material adverse change has occurred in the
overall rate of collection of the Receivables.

 

20

 

 

(o)                                 Collections
and Servicing.  Since September 30,
2009, there has been no material adverse change in the ability of the
Collection Agent, the Guarantor, the Sellers, the Transferor or any Subsidiary
or Affiliate of any of the foregoing to service and collect the Receivables.

 

(p)                                 No
Termination Event.  No event has
occurred and is continuing and no condition exists which constitutes a
Termination Event or a Potential Termination Event.

 

(q)                                 Not an
Investment Company.  The
Transferor is not, and is not controlled by, an “investment company” within the
meaning of the Investment Company Act of 1940, as amended, or is exempt from
all provisions of such Act.

 

(r)                                    ERISA.  Each of the Transferor and
its ERISA Affiliates is in compliance with ERISA except for any noncompliance
which would not reasonably be expected to have a Material Adverse Effect, and
no lien exists in favor of the Pension Benefit Guaranty Corporation on any of
the Receivables.

 

(s)                                  Lock-Box
Accounts.  The names
and addresses of all the Lock-Box Banks, together with the account numbers of
the Lock-Box Accounts at such Lock-Box Banks, are specified in Exhibit B
hereto (or at such other Lock-Box Banks and/or with such other Lock-Box
Accounts as have been notified to the Administrative Agent and the Purchasers
and for which Lock-Box Agreements have been executed in accordance with Section 2.09(b) hereof
and delivered to the Collection Agent).  All
Obligors have been instructed to make payment to a Lock-Box Account, and only
Collections are deposited into a Lock-Box Account.

 

(t)                                    Bulk
Sales.  No transaction contemplated
hereby or by the Receivables Purchase Agreement requires compliance with any “bulk
sales” act or similar law.

 

(u)                                 Transfers
Under Receivables Purchase Agreement.  Each Receivable which has been transferred to
the Transferor by any Seller has been purchased by the Transferor from the
Seller pursuant to, and in accordance with, the terms of the Receivables
Purchase Agreement.

 

(v)                                 Preference;
Voidability.  The
Transferor shall have given reasonably equivalent value to each Seller in
consideration for the transfer to the Transferor of the Receivables and Related
Security, Collections and Proceeds with respect thereto from the Seller, and
each such transfer shall not have been made for or on account of an antecedent
debt owed by the Seller to the Transferor, and no such transfer is or may be
voidable under any Section of the Bankruptcy Reform Act of 1978 (11 U.S.C.
§§101 et seq.), as amended (the “Bankruptcy Code”).

 

(w)                               Subsidiaries.  The Transferor shall not have any
subsidiaries.

 

(x)                                OFAC.  Neither the Transferor nor any of its
Affiliates (i) is a Sanctioned Person, (ii) does business in a
Sanctioned Country or with a Sanctioned Person in violation of the economic
sanctions of the United States administered by OFAC or (iii) does business
in such country or with any such agency, organization or person, in violation
of the economic sanctions of the United States administered by OFAC.

 

(y)                                 Fiscal
Months.  Exhibit C sets forth the
first and last days of 36 Fiscal Months beginning with the Fiscal Month
preceding the Closing Date.

 

21

 

Any
document, instrument, certificate or notice delivered to the Administrative
Agent or any Purchaser by the Transferor or any agent of the Transferor
hereunder shall be deemed a representation and warranty by the Transferor.

 

ARTICLE
IV

 

Conditions
Precedent

 

SECTION 4.01.                                   Conditions
to Effectiveness.  This
Agreement shall become effective on the first day on which the Administrative
Agent shall have received the following documents, instruments and Fees, all of
which shall be in a form and substance acceptable to each Purchaser:

 

(a)                                  A Certificate
of the Secretary or Assistant Secretary of the Transferor in substantially the
form of Exhibit J hereto certifying (i) the names and signatures of
the officers and employees authorized on its behalf to execute this Agreement
and any other documents to be delivered by it hereunder (on which Certificate
the Administrative Agent and the Purchasers may conclusively rely until such
time as the Administrative Agent shall receive from the Transferor a revised
Certificate meeting the requirements of this clause (a)(i)), (ii) a copy
of the Transferor’s Certificate of Incorporation, certified by the Secretary of
State of the State of Nevada, (iii) a copy of the Transferor’s By-Laws, (iv) a
copy of resolutions of the Board of Directors of the Transferor approving this
transaction and (v) certificates of the Secretary of State of the State of
Nevada certifying the Transferor’s good standing under the laws of the State of
Nevada.

 

(b)                                 A Certificate
of the Secretary or Assistant Secretary of each Seller in substantially the
form of Exhibit J hereto certifying (i) the names and signatures of
the officers and employees authorized on its behalf to execute the Receivables
Purchase Agreement and any other documents to be delivered by it (on which
Certificate the Administrative Agent and the Purchasers may conclusively rely
until such time as the Administrative Agent shall receive from the Seller a
revised Certificate meeting the requirements of this clause (b)(i)), (ii) a
copy of the Seller’s certificate of incorporation, certified by the Secretary
of State of the state of such Seller’s incorporation, (iii) a copy of the
Seller’s By-Laws, (iv) a copy of resolutions of the Board of Directors of
the Seller approving this transaction and (v) certificates of the
Secretary of State of the state of such Seller’s incorporation, certifying the
Seller’s good standing under the laws of such state.

 

(c)                                  Executed copies
of the Lock-Box Agreements relating to each of the Lock-Box Banks and the
Lock-Box Accounts.

 

(d)                                 An opinion of
Cahill Gordon & Reindel LLP, special counsel to the Transferor and the
Sellers, addressed to the Administrative Agent and the Purchasers, regarding
the lack of substantive consolidation in the event of a bankruptcy of TriMas
Corp., TriMas LLC or any Seller and true sale between each Seller and the
Transferor.

 

(e)                                  An opinion of
Joshua Sherbin, general counsel of TriMas Corp. and TriMas LLC, addressed to
the Administrative Agent and the Purchasers.

 

22

 

(f)                                    An executed
copy of this Agreement and each other Transaction Document to be executed by
the Transferor and the Sellers.

 

(g)                                 A Monthly
Report for the fiscal month ended November 22, 2009.

 

(h)                                 All Fees
required to be paid on or prior to the Closing Date in accordance with the Fee
Letter shall have been paid, and all invoiced expenses of the Administrative
Agent required to be reimbursed as of the Closing Date shall have been paid.

 

(i)                                     A complete copy
of the Credit Agreement as executed on December 16, 2009, together with
all schedules and exhibits thereto, and any amendments to the Security
Agreement (as therein defined), each in a form reasonably acceptable to the
Administrative Agent, confirming that this Agreement constitutes a “Permitted
Receivables Financing” under and as defined in the Credit Agreement and that
the Receivables, Related Security and Collections are not part of the
collateral encumbered by such Security Agreement.

 

(j)                                     The Existing
Subordinated Notes (as defined in the Credit Agreement) shall have been
refinanced with the notes governed by the Indenture together with other
available funds.

 

(k)                                  Such other
documents, instruments, certificates and opinions as the Administrative Agent
shall reasonably request.

 

SECTION 4.02.                                   Conditions
to Initial Incremental Transfer.  The following shall be additional conditions
precedent to the initial Incremental Transfer:

 

(a)                                  The Transferor
shall notify to the Administrative Agent by telecopy, of the proposed Initial
Incremental Transfer Date at least one (1) Business Day prior to such
proposed Initial Incremental Transfer Date.

 

(b)                                 Financing
statements (Form UCC-1) shall have been filed in the appropriate filing
offices naming the Transferor as the debtor, the Administrative Agent, as
secured party, and of such other similar instruments or documents as may be
necessary or, in the reasonable opinion of the Administrative Agent, desirable
under the Relevant UCC of all appropriate jurisdictions or any comparable law
to perfect the Administrative Agent’s security interest in all Receivables,
Related Security, Proceeds and Collections.

 

(c)                                  Financing
statements (Form UCC-1 and, as necessary, UCC-3) shall have been filed in
the appropriate filing offices naming each Seller as debtor, the Transferor as
assignor secured party, and the Administrative Agent, as total assignee of
secured party, and of such other similar instruments or documents as may be
necessary or, in the reasonable opinion of the Administrative Agent, desirable
under the Relevant UCC of all appropriate jurisdictions or any comparable law
to perfect the Transferor’s ownership or security interest in all Receivables,
Related Security and Collections.

 

(d)                                 Termination
statements (Form UCC-3) shall have been filed in the appropriate filing
offices, if any, necessary to terminate or assign to the Administrative Agent
all security interests and other rights of any person in Receivables previously
granted by the Transferor.

 

23

 

(e)                                  Termination
statements (Form UCC-3) shall have been filed in the appropriate filing
offices, if any, necessary to terminate or assign to the Administrative Agent
all security interests and other rights of any person in Receivables, Related
Security or Proceeds previously granted by the Sellers.

 

(f)                                    The
Administrative Agent shall have received certified copies of requests for
information or copies (Form UCC-11) (or a similar search report certified
by parties acceptable to the Administrative Agent), dated a date reasonably
near the Closing Date, listing all effective financing statements which name
the Transferor and any Seller (under their respective present names and any
previous names) as debtor and which are filed in jurisdictions in which the
filings were made pursuant to item (c), (d), (e) or (f) above
together with copies of such financing statements (none of which, except for
those filed pursuant to item (c) or (d) or those terminated pursuant
to item or (f), shall cover any Receivables, Related Security or Contracts).

 

(g)                                 An opinion of
Cahill Gordon & Reindel LLP, special counsel to the Transferor and the
Seller, addressed to the Administrative Agent and the Purchasers regarding the
enforceability of the Transaction Documents to which each is a party and other
corporate matters.

 

(h)                                 The
Administrative Agent shall have received opinions of special counsel to each
Seller and the Transferor in the states of Indiana, Michigan, Ohio and Nevada,
respectively, addressed to the Administrative Agent and the Purchasers,
regarding perfection and priority of the interest granted by the Seller to the
Transferor and the security interest granted by the Transferor to the
Administrative Agent.

 

(i)                                     The
Administrative Agent shall have received the most recent unaudited balance
sheet of the Transferor certified by its chief financial officer.

 

(j)                                     The
Administrative Agent shall be satisfied, as of the Closing Date, that the sum
of (i) Availability under this Agreement plus (ii) undrawn
availability under the Credit Agreement is not less than $65,000,000.

 

SECTION 4.03.                                   Conditions
to Each Transfer.  Each
Transfer shall be subject to the further conditions precedent that (a) the
Commitment Expiry Date shall not have occurred; and (b) on the applicable
Transfer Date, the following statements shall be true (and acceptance of the
proceeds of such Transfer shall be deemed a representation and warranty by
Transferor that such statements are then true):

 

(i)                                     the representations and warranties set
forth in Section 3.01 are true and correct in all material respects on and
as of the date of such Transfer as though made on and as of such date, except
to the extent such representations and warranties expressly relate to an
earlier date, in which case such representations and warranties shall remain
true and correct in all material respects as of such earlier date;

 

(ii)                                  no event has occurred and is continuing,
or would result from such Transfer, that will constitute a Termination Event or
a Potential Termination Event; and

 

24

 

(iii)                               after giving effect to such Transfer and
payment of the Transfer Price, the Net Investment will not exceed the Facility
Limit and the Percentage Interest will not exceed the Maximum Percentage
Interest.

 

ARTICLE
V

 

Covenants

 

SECTION 5.01.                                   Affirmative
Covenants of the Transferor.  At all times from the date hereof to the
later to occur of (i) the Termination Date or (ii) the date on which
all Commitments have been terminated, the Net Investment has been reduced to
zero, all accrued Discount, Fees, Servicing Fees and all other Aggregate
Unpaids shall have been paid in full in cash:

 

(a)                                  Financial
Reporting.  The
Transferor will maintain a system of accounting established and administered in
accordance with GAAP consistently applied, and the Transferor and TriMas Corp.
will furnish to the Administrative Agent:

 

(i)                                     Annual
Reporting.  Within
ninety-five (95) days after the close of each Fiscal Year, audited financial
statements of TriMas Corp. and unaudited financial statements of the
Transferor, prepared in accordance with GAAP consistently applied, in the case
of TriMas Corp. on a consolidated basis for TriMas Corp. and its Subsidiaries,
including balance sheets as of the end of such period, related statements of
operations, shareholders’ equity and cash flows, accompanied by (in the case of
TriMas Corp.) an audit report certified by KPMG LLP or other nationally
recognized independent certified public accountants (without a “going concern”
or like qualification or exception and without any qualification or exception
as to the scope of the audit), acceptable to the Administrative Agent, prepared
in accordance with generally accepted auditing standards and any management
letter prepared by said accountants (it being understood that TriMas Corp.’s
obligation to furnish its audited financial statements to the Administrative Agent
— but not its obligation to furnish such management letter — shall be deemed to
be satisfied by the filing of TriMas Corp.’s Form 10-K for such Fiscal
Year with the Commission).

 

(ii)                                  Quarterly
Reporting.  Within fifty
(50) days after the close of the first three (3) quarterly periods of each
Fiscal Year, for (x) the Transferor and (y) for TriMas Corp. and its
Subsidiaries, on a consolidated basis, unaudited balance sheets as at the close
of each such period and related statements of operations, shareholders’ equity
and cash flows in each case for the period from the beginning of such Fiscal
Year to the end of such quarter, in the case of the Transferor, certified by
its senior financial officer (it being understood that TriMas Corp.’s
obligation to furnish its quarterly financial statements to the Administrative
Agent shall be deemed to be satisfied by the filing of TriMas Corp.’s Form 10-Q
for such fiscal quarter with the Commission).

 

(iii)                               Compliance
Certificate.  Together
with the financial statements required hereunder, a compliance certificate
signed by the Transferor’s chief financial officer stating that (x) the
attached financial statements have been prepared in accordance with

 

25

 

GAAP consistently applied
and accurately reflect the financial condition of the Transferor or TriMas
Corp., as applicable, and (y) to the best of such Person’s knowledge, no
Termination Event or Potential Termination Event exists, or if any Termination
Event or Potential Termination Event exists, stating the nature and status
thereof.

 

(iv)                              Notice
of Termination Events or Potential Termination Events.  As soon as possible and in any event within
two (2) Business Days after the actual knowledge of a Responsible Officer
of the Transferor of the occurrence of each Termination Event or each Potential
Termination Event, a statement of the chief financial officer of the Transferor
setting forth details of such Termination Event or Potential Termination Event
and the action which the Transferor has taken or proposes to take with respect
thereto.

 

(v)                                 Change
in Credit and Collection Policy.  Within ten (10) Business Days after the
date any material change in or amendment to the Credit and Collection Policy is
made, a copy of the Credit and Collection Policy then in effect indicating such
change or amendment.

 

(vi)                              Credit
and Collection Policy. 
Within ninety (90) days after the close of each Fiscal Year beginning
with the close of the 2010 Fiscal Year, a complete copy of the Credit and
Collection Policy then in effect.

 

(vii)                           ERISA.  Promptly after the filing or receiving
thereof, copies of all reports and notices with respect to any reportable event
(as defined in Article IV of ERISA) which the Transferor, any of the
Sellers or any ERISA Affiliate of the Transferor or the Sellers files under
ERISA with the Internal Revenue Service, the Pension Benefit Guaranty
Corporation or the U.S. Department of Labor or which the Transferor, any of the
Sellers or any ERISA Affiliates of the Transferor or the Sellers receives from
the Internal Revenue Service, the Pension Benefit Guaranty Corporation or the
U.S. Department of Labor.

 

(viii)                        Other
Information.  Such other
information (including non-financial information) as the Administrative Agent
may from time to time reasonably request with respect to the Sellers, the
Collection Agent, the Transferor or any Subsidiary of any of the foregoing.

 

(ix)                                Settlement
Statements.  Each
Settlement Statement when and as required by Section 2.12.

 

(x)                                   Appointment
of Independent Director.  Not
less than 10 days prior to the appointment of any replacement or additional
Independent Director, notice of the proposed appointee, together with a
certificate of a Responsible Officer of the Transferor certifying that such
candidate satisfies the criteria set forth in the definition of “Independent
Director” in this Agreement.

 

(xi)                                Information,
Reports and Certificates under Credit Agreement.  Simultaneously with the
delivery to the administrative agent under the Credit Agreement, copies of any
and all financial statements, budgets, projections, Parent Compliance

 

26

 

Certificates, accountants’
certificates, proxy statements and other information delivered by TriMas Corp.
or Guarantor pursuant to Section 5.01 of the Credit Agreement, copies of
the same (it being understood that such obligation to furnish the foregoing to
the Administrative Agent shall be deemed to be satisfied by the filing of any
such information with the Commission).

 

(b)                                 Conduct
of Business.  The
Transferor will carry on and conduct its business in substantially the same
manner and in substantially the same fields of enterprise as it is presently
conducted and do all things necessary to remain duly incorporated, validly
existing and in good standing as a domestic corporation in its jurisdiction of
incorporation and maintain all requisite authority to conduct its business in
each jurisdiction in which its business is conducted except any jurisdictions
where the failure to maintain such authority could not reasonably be expected
to have a Material Adverse Effect.

 

(c)                                  Compliance
with Laws.  The
Transferor will, and will cause each Seller and each of the Transferor’s and
such Seller’s Affiliates to, comply with all laws, rules, regulations, orders,
writs, judgments, injunctions, decrees or awards to which it or its respective
properties may be subject, except to the extent that the failure to so comply
with such laws, rules, regulations, writs, judgments, injunctions, decrees or
awards would not materially adversely affect the ability of the Transferor to
perform its obligations under this Agreement.

 

(d)                                 Furnishing
of Information and Inspection of Records.  The Transferor will, and will cause each
Seller to, furnish to the Administrative Agent from time to time such
information with respect to the Receivables as the Administrative Agent may
reasonably request, including, without limitation, listings identifying the
Obligor and the Outstanding Balance for each Receivable, together with an aging
of Receivables.  The Transferor will, and
will cause each Seller to, at any time and from time to time during regular
business hours and upon reasonable notice and permit the Administrative Agent,
the Purchasers, or their agents or representatives, (i) to examine and
make copies of and abstracts from all Records and (ii) to visit the
offices and properties of the Transferor and the Sellers for the purpose of
examining such Records, and to discuss matters relating to Receivables or the
Transferor’s and the Sellers’ performance hereunder and under the other
Transaction Documents to which such Person is a party with any of the officers
or employees of the Transferor and the Sellers having knowledge of such matters
(each such visit, a “Review”); provided that there shall be no more
than two Reviews in any calendar year unless a Potential Termination Event or
Termination Event has occurred and is continuing.  The Transferor agrees to pay all reasonable
out-of-pocket expenses incurred by the Administrative Agent, including, without
limitation, the cost of any auditors or other independent contractors
participating in a Review (collectively, “Review Costs”)
in connection with (x) the first Review in each calendar year, (y) if
the Administrative Agent determines that the first Review in any calendar year
reveals material reporting inaccuracies, the Transferor agrees to pay the
Review Costs associated with a second Review in such calendar year, and (z) if
any Potential Termination Event or Termination Event exists and is continuing,
the number of Reviews in any calendar year shall not be limited, and the
Transferor agrees to pay the Review Costs associated with all Reviews in such
calendar year.

 

(e)                                  Keeping
of Records and Books of Account.  The Transferor will, and will cause each
Seller to, maintain and implement administrative and operating procedures
(including,

 

27

 

without
limitation, an ability to recreate records evidencing Receivables in the event
of the destruction of the originals thereof), and keep and maintain, all
documents, books, records and other information reasonably necessary or
advisable for the collection of all Receivables (including, without limitation,
records adequate to permit the daily identification of each new Receivable and
all Collections of and adjustments to each existing Receivable).  The Transferor will, and will cause each
Seller to, give the Administrative Agent and each of the Purchasers, prompt
notice of any change in the administrative and operating procedures of the
Transferor or such Seller, as applicable, referred to in the previous sentence
to the extent such change may have a Material Adverse Effect.

 

(f)                                    Performance
and Compliance with Contracts.  The Transferor, at its expense, will instruct
the Collection Agent to, and to the extent applicable, timely and fully perform
and comply with all material provisions, covenants and other promises required
to be observed by the Transferor under the Contracts related to the
Receivables.

 

(g)                                 Credit
and Collection Policies.  The
Transferor will instruct the Collection Agent and the Sellers to comply in all
material respects with the Credit and Collection Policy in regard to each
Receivable and the related Contract.

 

(h)                                 Collections.  The Transferor shall instruct the Collection
Agent and the Sellers to instruct all Obligors to cause all Collections (other
than Collections remitted directly) to be deposited directly to a Lock-Box
Account.

 

(i)                                     Collections
Received.  The
Transferor shall, and shall instruct the Collection Agent and the Sellers to,
hold in trust, and deposit immediately (but in any event no later than one (1) Business
Day following receipt thereof) to a Lock-Box Account all Collections received
from time to time by the Transferor, the Collection Agent and the Sellers.

 

(j)                                     Sale
Treatment.  The
Transferor will not (i) account for (including for accounting purposes),
or otherwise treat, the transactions contemplated by the Receivables Purchase
Agreement in any manner other than as a sale of Receivables by the Sellers to
the Transferor, or (ii) account for (other than for tax purposes) or
otherwise treat the transactions contemplated hereby in any manner other than
as a sale of Receivables by the Transferor to the Purchasers.  In addition, the Transferor shall disclose
(in a footnote or otherwise) in all of its financial statements (including any
such financial statements consolidated with any other Persons’ financial
statements) the existence and nature of the transaction contemplated hereby and
by the Receivables Purchase Agreement and the interest of the Transferor and
the Purchasers in the Receivables and Related Security, Collections and
Proceeds with respect thereto.

 

(k)                                  Separate
Business.  The Transferor
shall not engage in any business not permitted by its Certificate of
Incorporation as in effect on the Closing Date.

 

(l)                                     Corporate
Documents.  The
Transferor shall only amend, alter, change or repeal its Certificate of
Incorporation or the By-laws with the prior written consent of the
Administrative Agent which shall not be unreasonably withheld.

 

28

 

(m)                               Net
Worth.  The Transferor on the Initial
Incremental Transfer Date has a net worth, and thereafter maintain at all times
a net worth (as defined in accordance with GAAP), of at least $25,000,000.

 

(n)                                 Separate
Corporate Existence.  The
Transferor shall:

 

(i)                                     Maintain its
own deposit account or accounts, separate from those of any Affiliate, with
commercial banking institutions and use its commercially reasonable efforts to
ensure that the funds of the Transferor will not be diverted to any other
Person or for other than corporate uses of the Transferor and that, except as
contemplated by Section 6.02(b) such funds will not be commingled with the
funds of any Seller or any Subsidiary or Affiliate of the Sellers;

 

(ii)                                  To the extent
that it shares the same officers or other employees as any of its stockholders
or Affiliates, fairly allocate among such entities the salaries of and the
expenses related to providing benefits to such officers and other employees,
and each such entity shall bear its fair share of the salary and benefit costs
associated with all such common officers and employees;

 

(iii)                               To the extent
that it jointly contracts with any of its stockholders or Affiliates to do
business with vendors or service providers or to share overhead expenses,
fairly allocate among such entities the costs incurred in so doing, and each
such entity shall bear its fair share of such costs.  To the extent that the Transferor contracts
or does business with vendors or service providers where the goods and services
provided are partially for the benefit of any other Person, the costs incurred
in so doing shall be fairly allocated to or among such entities for whose
benefit the goods or services are provided, and each such entity shall bear its
fair share of such costs;

 

(iv)                              Enter into all
material transactions between the Transferor and any of its Affiliates, whether
currently existing or hereafter entered into, only on an arm’s length basis, it
being understood and agreed that the transactions contemplated in the
Transaction Documents meet the requirements of this clause (iv);

 

(v)                                 Maintain office
space separate from the office space of the Sellers and any Affiliates of the
Sellers.  To the extent that the
Transferor and any of its stockholders or Affiliates have offices in the same
location, there shall be a fair and appropriate allocation of overhead costs
among them, and each such entity shall bear its fair share of such expenses;

 

(vi)                              Issue separate
unaudited financial statements prepared not less frequently than quarterly and
prepared in accordance with GAAP consistently applied;

 

(vii)                           Conduct its
affairs strictly in accordance with its articles of incorporation and observe
all necessary, appropriate and customary corporate formalities, including, but
not limited to, holding all regular and special stockholders’ and directors’
meetings appropriate to authorize all corporate action, keeping separate and
accurate minutes of its meetings, passing all resolutions or consents necessary
to authorize actions taken or to

 

29

 

be taken, and maintaining
accurate and separate books, records and accounts, including, but not limited
to,  payroll and intercompany transaction
accounts;

 

(viii)                        Not assume or
guarantee any of the liabilities of the Sellers or any Affiliate thereof;

 

(ix)                                Take, or
refrain from taking, as the case may be, all other actions that are necessary
to be taken or not to be taken in order to ensure that the assumptions and
factual recitations set forth in the Specified Bankruptcy Opinion Provisions
remain true and correct with respect to the Transferor and (y) comply with
those procedures described in such provisions which are applicable to the
Transferor;

 

(x)                                   Take such
actions as are necessary to ensure that not less than one member of Transferor’s
Board of Directors shall be an individual who (1) is not, and never has
been, a direct, indirect or beneficial stockholder, officer, director,
employee, affiliate,  associate, material
supplier or material customer of the Collection Agent or any of its Affiliates,
and (2) has experience as an independent director for a corporation whose
charter documents required the unanimous consent of all independent directors
thereof before such corporation could consent to the institution of bankruptcy
or insolvency proceeding against it or before it could file a petition seeking relief
under any applicable federal or state law relating to bankruptcy or insolvency,
and (3) has at least three years of employment experience with one or more
entities that provide, in the ordinary course of their respective businesses,
advisory, management or placement services to issuers of securitization or
structured finance instruments, agreements or securities (each, an the “Independent Director”).  The certificate of incorporation of the
Transferor shall provide that (i) at least one member of the Transferor’s
Board of Directors shall be an Independent Director, (ii) at any time
while this Agreement remains in effect or any Aggregate Unpaids remain
outstanding, no Person shall be appointed as a replacement Independent Director
without at least 10 days’ prior written notice of the proposed replacement
having been given to the Administrative Agent and the Administrative Agent
having confirmed in writing that the proposed replacement conforms, in the
reasonable judgment of the Administrative Agent, to the criteria set forth
above in the definition of “Independent Director,” (iii) the Transferor’s
Board of Directors shall not approve, or take any other action to cause the
filing of, a voluntary bankruptcy petition with respect to the Transferor
unless a unanimous vote of the Transferor’s Board of Directors (which vote
shall include the affirmative vote of each Independent Director) shall approve
the taking of such action in writing prior to the taking of such action and (iv) the
provisions requiring an Independent Director and the provision described in
clauses (i)-(iii) of this paragraph cannot be amended without the prior
written consent of each Independent Director;

 

(xi)                                Take such
actions as are necessary to ensure that no Independent Director shall at any
time serve as a trustee in bankruptcy for the Transferor or any Affiliate
thereof;

 

30

 

(xii)                             Take such
actions as are necessary to ensure that the books of account, financial reports
and corporate records of the Transferor will be maintained separately from
those of TriMas Corp., TriMas LLC and each other Affiliate of the Transferor;

 

(xiii)                          Take such
actions as are necessary to ensure that any financial statements of TriMas
Corp. or Affiliate thereof which are consolidated to include the Transferor
will contain detailed notes clearly stating that (A) all of the Transferor’s
assets are owned by the Transferor, and (B) the Transferor is a separate
corporate entity with its own separate creditors that will be entitled to be
satisfied out of the Transferor’s assets prior to any value in the Transferor
becoming available to the Transferor’s equity holders; and the accounting
records and the published financial statements of the Sellers will clearly show
that, for accounting purposes, the Receivables and Related Security have been
sold to the Transferor;

 

(xiv)                         Take such
actions as are necessary to ensure that the Transferor’s assets will be
maintained in a manner that facilitates their identification and segregation
from those of TriMas Corp., the Sellers and other Affiliates of TriMas Corp.;

 

(xv)                            Take such
actions as are necessary to ensure that no Affiliates of the Transferor shall,
directly or indirectly, name the Transferor or enter into any agreement to name
the Transferor a direct or contingent beneficiary or loss payee or any
insurance policy covering the property of any such Affiliate; and

 

(xvi)                         Take such
actions as are necessary to ensure that no Affiliate of the Transferor will be,
nor will hold itself out to be, responsible for the debts of the Transferor or
the decisions or actions in respect of the daily business and affairs of the
Transferor.  The Transferor will
immediately correct any known misrepresentation with respect to the foregoing,
and the Transferor and its Affiliates will not operate or purport to operate as
an integrated single economic unit with respect to each other or in their
dealing with any other entity.

 

(o)                                 Enforcement
of Receivables Purchase Agreement.  The Transferor shall use its best efforts to
enforce all rights held by it under the Receivables Purchase Agreement and
shall not waive any breach of any covenant contained in Section 5.01
thereunder.

 

SECTION 5.02.                                   Negative
Covenants of the Transferor.  At all times from the date hereof until the
date on which all Commitments have been terminated, the Net Investment has been
reduced to zero, and all accrued Discount, Fees, Servicing Fees and all other
Aggregate Unpaids shall have been paid in full in cash:

 

(a)                                  No
Sales, Liens, etc.  Except as
otherwise provided herein and in the Receivables Purchase Agreement, the
Transferor will not sell, assign (by operation of law or otherwise) or
otherwise dispose of, or create or suffer to exist any Adverse Claim (other
than Liens for taxes, assessments or other governmental charges that are not
yet due and payable) upon, or the filing of any financing statement with
respect to, (x) any of the Receivables or Related Security, or (y) any
Lock-Box Account.

 

31

 

(b)                                 No
Extension or Amendment of Receivables.  Except as otherwise permitted in Section 6.02
hereof, the Transferor will not, and will not permit any Seller to, extend,
amend or otherwise modify the terms of any Receivable, or amend, modify or
waive any term or condition of any Contract related thereto.

 

(c)                                  No
Change in Business or Credit and Collection Policy.  The Transferor will not, and will not permit
any Seller to, make any change in the character of its business or in the
Credit and Collection Policy that could reasonably be expected to have a
Material Adverse Effect.

 

(d)                                 No
Mergers, etc.  The
Transferor will not without the prior written consent of the Administrative
Agent, and except as otherwise permitted pursuant to the Receivables Purchase
Agreement, will not permit any Seller to, (i) consolidate or merge with or
into any other Person, or (ii) sell, lease or transfer all or
substantially all of its assets to any other Person, provided
that a Seller may merge with or into another Seller or with another Person if
(A)(1) such Seller is the corporation surviving such consolidation or
merger or (2) the Person into or with whom the Seller is merged or
consolidated is an Affiliate and the surviving corporation assumes in writing
all duties and liabilities of the Seller under the Transaction Documents, and (B) immediately
after and giving effect to such consolidation or merger, no Termination Event
or Potential Termination Event shall have occurred and be continuing.

 

(e)                                  Change
in Payment Instructions to Obligors; Deposits to Lock-Box Accounts; Notice of
Legal Process Against Lock-Box Account.  The Transferor will not, and will not permit
any Seller to, add or terminate any bank as a Lock-Box Bank or any account as a
Lock-Box Account to or from those listed in Exhibit B hereto or make any
change in its instructions to Obligors regarding payments to be made to any
Lock-Box Account, unless (i) such instructions are to deposit such
payments to another existing Lock-Box Account or (ii) the Administrative
Agent shall have received written notice of such addition, termination or
change at least thirty (30) days prior thereto and the Administrative Agent
shall have received a Lock-Box Agreement executed by each new Lock-Box Bank or
an existing Lock-Box Bank with respect to each new Lock-Box Account, as
applicable.  The Transferor will not
deposit or otherwise credit, or cause or permit to be so deposited or credited,
to any Lock-Box Account cash or cash proceeds other than Collections of
Receivables.  However, in the event any
Seller deposits or otherwise credits, or cause or permits to be so deposited or
credited, to any Lock-Box Account, cash or cash proceeds other than Collections
of Receivables, the Transferor shall, or shall cause such Seller to, segregate
or cause to be segregated any such cash or cash proceeds from Collections
within one (1) Business Day following the deposit or credit to any
Lock-Box Account.  Promptly after a
Responsible Officer of the Transferor or the Collection Agent receives notice
or becomes aware that a lien, writ, garnishment or other legal process has been
filed against the Transferor, TriMas Corp., the Collection Agent, any Seller or
any Lock- Box Bank with respect to a Lock-Box Account or Lock-Box Agreement,
the Transferor or the Collection Agent, as applicable, will notify the
Administrative Agent thereof.

 

(f)                                    Change
of Name, etc.  The
Transferor will not, and will not permit a Seller to, change its name,
jurisdiction of organization, form of organization, taxpayer identification
number or state organizational number, unless at least ten (10) days prior
to the effective date of any such change the Transferor delivers to the
Administrative Agent (i) such documents,

 

32

 

instruments
or agreements, executed by the Transferor as are necessary to reflect such
change and to continue the perfection of the Administrative Agent’s ownership
interests or security interests in the Receivables and Related Security,
Collections and Proceeds with respect thereto and (ii) new or revised
Lock-Box Agreements executed by the Lock-Box Banks which reflect such change
and enable the Administrative Agent to continue to exercise its rights
contained in Section 2.09 hereof.

 

(g)                                 Amendment
to Receivables Purchase Agreement.  The Transferor will not, and will not permit
any of the Sellers to, amend, modify, or supplement the Receivables Purchase
Agreement, except with the prior written consent of the Administrative Agent;
nor shall the Transferor take, or permit any of the Sellers to take, any other
action under the Receivables Purchase Agreement that shall have a material
adverse affect on the Administrative Agent or any Purchaser or which is
inconsistent with the terms of this Agreement.

 

(h)                                 Other
Debt.  Except as provided for herein
or in the Receivables Purchase Agreement, the Transferor will not create,
incur, assume or suffer to exist any indebtedness whether current or funded, or
any other liability other than (i) indebtedness of the Transferor
representing fees, expenses and indemnities arising hereunder or under the
Receivables Purchase Agreement (including the Subordinated Note) for the
purchase price of the Receivables under the Receivables Purchase Agreement; (ii) other
indebtedness incurred in the ordinary course of its business to the extent
permitted by or required under any other Transaction Document and (iii) additional
indebtedness in an amount not to exceed $13,474 at any time outstanding.

 

(i)                                     ERISA
Matters.  The
Transferor will not, and will not permit any Seller to, (i) engage or
permit any of its ERISA Affiliates to engage in any prohibited transaction (as
defined in Section 4975 of the Code and Section 406 of ERISA) for
which an exemption is not available or has not previously been obtained from
the U.S. Department of Labor; (ii) permit to exist any accumulated funding
deficiency (as defined in Section 302(a) of ERISA and Section 412(a) of
the Code) or funding deficiency with respect to any Benefit Plan other than a
Multiemployer Plan; (iii) fail to make any payments to any Multiemployer
Plan that the Transferor or any ERISA Affiliate of the Transferor is required to
make under the agreement relating to such Multiemployer Plan or any law
pertaining thereto; (iv) terminate any Benefit Plan so as to result in any
liability to the Pension Benefit Guaranty Corporation; or (v) permit to
exist any occurrence of any reportable event described in Title IV of ERISA
which represents a material risk of a liability to the Transferor or any ERISA
Affiliate of the Transferor under ERISA or the Code, if such prohibited
transactions, accumulated funding deficiencies, failure to make payments,
terminations and reportable events occurring within any Fiscal Year in the
aggregate, involve a payment of money or an incurrence of liability by the
Transferor or any ERISA Affiliate of the Transferor in an amount which would
reasonably be expected to have a Material Adverse Effect.

 

(j)                                     Payment
to the Sellers.  With respect
to any Receivable sold by the Sellers to the Transferor, the Transferor shall,
and shall cause the Sellers to, effect such sale under, and pursuant to the
terms of, the Receivables Purchase Agreement, including, without limitation,
the payment by the Transferor either in cash or by increase in the amount of
the Subordinated Note of an amount equal to the purchase price for such
Receivable as required by the terms of the Receivables Purchase Agreement.

 

33

 

ARTICLE
VI

 

Administration
and Collections

 

SECTION 6.01.                                   Appointment
of Collection Agent.  The
servicing, administering and collection of the Receivables shall be conducted
by such Person (the “Collection Agent”) so
designated from time to time in accordance with this Section 6.01.  Until the Administrative Agent (at the
direction of the Required Purchasers) gives notice to TriMas Corp. of the
designation of a new Collection Agent pursuant to this Section 6.01,
TriMas Corp. is hereby designated as, and hereby agrees to perform the duties
and obligations of, the Collection Agent pursuant to the terms hereof.  The Collection Agent may not delegate any of
its rights, duties or obligations hereunder, or designate a substitute
Collection Agent, without the prior written consent of the Administrative
Agent; provided that TriMas Corp.
shall be permitted to delegate its duties and obligations as Collection Agent
hereunder to the Sellers, or any of TriMas Corp.’s Affiliates or stockholders,
but such delegation shall not relieve TriMas Corp. of its duties and
obligations as Collection Agent hereunder. 
The Administrative Agent may, and upon the direction of the Required
Purchasers the Administrative Agent shall, but only after the occurrence of a
Collection Agent Default or any other Termination Event, designate as
Collection Agent any Person (including itself) to succeed TriMas Corp. or any
successor Collection Agent, on the condition in each case that any such Person
so designated shall agree to perform the duties and obligations of the
Collection Agent pursuant to the terms hereof. 
Following a Collection Agent Default or a Termination Event, the Administrative
Agent may notify any Obligor of the designation of a successor Collection
Agent.

 

SECTION 6.02.                                   Duties
of Collection Agent.  (a) The
Collection Agent shall take or cause to be taken all such action as may be
necessary or advisable to collect each Receivable from time to time, all in accordance
with applicable laws, rules and regulations, with reasonable care and
diligence, and in accordance with the Credit and Collection Policy.  Each of the Transferor, the Purchasers and
the Administrative Agent, hereby appoints as its agent the Collection Agent,
from time to time designated pursuant to Section 6.01 hereof, to enforce
its respective rights and interests in and under the Receivables and Related
Security, Collections and Proceeds with respect thereto.  To the extent permitted by applicable law,
the Transferor hereby grants to any Collection Agent appointed hereunder an
irrevocable power of attorney to take in the Transferor’s name and on behalf of
the Transferor any and all steps necessary or desirable, in the reasonable
determination of the Collection Agent, to collect all amounts due under any and
all Receivables, including, without limitation, endorsing the Transferor’s name
on checks and other instruments representing Collections and enforcing such
Receivables and the related Contracts. 
The Collection Agent shall set aside for the account of the Transferor
and the Purchasers their respective allocable shares of the Collections of
Receivables in accordance with Sections 2.05 and 2.06 hereof.  The Collection Agent shall segregate and deposit
to the Administrative Agent’s Account each Purchaser’s allocable share of
Collections of Receivables when required pursuant to Article II
hereof.  The Collection Agent shall, and
shall cause the Sellers to, hold in trust for the Transferor, the Purchasers
and the Administrative Agent, in accordance with their respective interests,
all Records which evidence or relate to Receivables, Related Security or
Collections. Notwithstanding anything to the contrary contained herein, the
Administrative Agent shall have the absolute and unlimited right to direct the
Collection Agent (whether the Collection Agent is TriMas Corp. or any other Person)
to commence or settle any

 

34

 

legal
action to enforce collection of any Receivable or to foreclose upon or
repossess any Related Security.  The
Collection Agent shall not make the Administrative Agent or any of the
Purchasers a party to any litigation without the prior written consent of such
Person.

 

(b)                                 The Collection
Agent shall, as soon as practicable following receipt thereof, segregate any
funds deposited in a Lock-Box Account or otherwise commingled and not
attributable to a Receivable within one (1) Business Day of receipt
thereof and remit such funds to the appropriate Person. If the Collection Agent
is not the Transferor, TriMas Corp., any Seller, or an Affiliate of the
Transferor or the Sellers, the Collection Agent, by giving three (3) Business
Days’ prior written notice to the Administrative Agent, may revise the
Servicing Fee; provided that such revised
Servicing Fee shall be a reasonable fee agreed upon by the Collection Agent and
the Administrative Agent reflecting rates and terms prevailing at such time as
would be negotiated on an arm’s-length basis. 
The Collection Agent, if other than the Transferor, TriMas Corp., any
Seller, TriMas Corp. stockholder or an Affiliate of the Transferor or the
Sellers, shall as soon as practicable upon demand, deliver to the applicable
Seller all Records in its possession which evidence or relate to indebtedness
of an Obligor which is not a Receivable.

 

(c)                                  [Intentionally
Omitted]:

 

(d)                                 Notwithstanding
anything to the contrary contained in this Article VI, the Collection
Agent, if not the Transferor, TriMas Corp., any Seller or any Affiliate of the
Transferor or the Sellers, shall have no obligation to collect, enforce or take
any other action described in this Article VI with respect to any
indebtedness that is not included in the Transferred Interest other than to
deliver to the Transferor the collections and documents with respect to any
such indebtedness as described in Section 6.02(b) hereof.

 

SECTION 6.03.                                   Rights
After Designation of New Collection Agent.  At any time following the designation of a
Collection Agent other than TriMas Corp., any Seller or the Transferor pursuant
to the penultimate sentence of Section 6.01 hereof:

 

(i)                                     the
Administrative Agent may, at its option, or shall, at the direction of the
Required Purchasers, direct that payment of all amounts payable under any
Receivable be made directly to the Administrative Agent or its designee for the
benefit of the Purchasers;

 

(ii)                                  the Transferor
shall, at the Administrative Agent’s request and at the Transferor’s expense,
give notice of the Transferor’s and/or the Purchasers’ ownership of Receivables
to each Obligor and direct that payments be made directly to the Administrative
Agent or its designee;

 

(iii)                               the Transferor
shall, at the Administrative Agent’s request, (A) assemble all of the
Records, and shall make the same available to the Administrative Agent or its
designee at a place selected by the Administrative Agent or its designee, and (B) segregate
all cash, checks and other instruments received by it from time to time
constituting Collections of Receivables in a manner acceptable to the
Administrative Agent and shall, promptly upon receipt, remit all such cash,
checks and instruments, duly

 

35

 

endorsed or with duly executed
instruments of transfer, to the Administrative Agent or its designee; and

 

(iv)                              the Transferor
hereby authorizes the Administrative Agent to take any and all steps in the
Transferor’s name and on behalf of the Transferor necessary or desirable, in
the determination of the Administrative Agent, to collect all amounts due under
any and all Receivables, including, without limitation, endorsing the
Transferor’s name on checks and other instruments representing Collections and
enforcing such Receivables and the related Contracts.

 

SECTION 6.04.                                   Representations
and Warranties of the Collection Agent.  The Collection Agent represents and warrants
(solely as to itself) to the Administrative Agent and each Purchaser as of the
date it becomes a Collection Agent hereunder that:

 

(a)                                  Corporate
Existence and Power.  The
Collection Agent is a corporation duly organized, validly existing and in good
standing under the laws of its respective jurisdiction of incorporation and has
all corporate power and all material governmental licenses, authorizations,
consents and approvals required to carry on its business in each jurisdiction
in which its business is now conducted, except where the failure to obtain such
licenses, authorizations, consents and approvals would not have a Material
Adverse Effect.  The Collection Agent is
duly qualified to do business in, and is in good standing in, every other
jurisdiction in which the nature of its business requires it to be so
qualified, except where the failure to be so qualified or in good standing
would not have a Material Adverse Effect.

 

(b)                                 Corporate
and Governmental Authorization, Contravention.  The execution, delivery and performance by
the Collection Agent of this Agreement (i) are within the Collection Agent’s
corporate powers, (ii) have been duly authorized by all necessary
corporate action on the Collection Agent’s part, (iii) require no action
by or in respect of, or filing with, any Official Body or official thereof
(except for the filing of UCC financing statements as required by this
Agreement or as have been taken or filed and, with respect to filings other
than UCC financing statements, filings where the failure to file will not have
a Material Adverse Effect), (iv) do not contravene, or constitute a
default under, any provision of applicable Law or of the organizational
documents of the Collection Agent or of any agreement or other material
instrument binding upon the Collection Agent, except where such contravention
or default would not have a Material Adverse Effect, or (v) result in the
creation or imposition of any Adverse Claim on the assets of the Collection
Agent or any of its Affiliates (except those created by the Transaction
Documents).

 

(c)                                  Binding
Effect.  This Agreement constitutes the
legal, valid and binding obligations of the Collection Agent, enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency,
moratorium or other similar laws affecting the rights of creditors generally
and general equitable principles (whether considered in a proceeding at law or
in equity).

 

(d)                                 Action,
Suits.  Except as set forth in the
TriMas Corp. Form 10-Q for the period ended September 30, 2009, there
are no actions, suits or proceedings pending, or to the knowledge of the
Collection Agent, threatened, against the Collection Agent, or any Affiliate of

 

36

 

the Collection Agent, or its respective
properties, in or before any court, arbitrator or other body, which could
reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect.

 

(e)                                  OFAC.  Neither the Collection Agent nor any of its
Affiliates (i) is a Sanctioned Person, (ii) does business in a
Sanctioned Country or with a Sanctioned Person in violation of the economic
sanctions of the United States administered by OFAC or (iii) does business
in such country or with any such agency, organization or person, in violation
of the economic sanctions of the United States administered by OFAC.

 

SECTION 6.05.                                   Covenants
of the Collection Agent.  At
all times from the date hereof to the date on which all Commitments have been
terminated, the Net Investment has been reduced to zero, and all accrued
Discount, Fees, Servicing Fees and all other Aggregate Unpaids have been paid
in full in cash:

 

(a)                                  Credit
and Collection Policy.  The
Collection Agent will comply in all material respects with the Credit and
Collection Policy in regard to each Receivable and the related Contract.

 

(b)                                 Collections
Received.  The
Collection Agent shall hold in trust, and deposit as soon as reasonably
practicable (but in any event no later than one Business Day following its
receipt thereof) to a Lock-Box Account all Collections received from time to
time by the Collection Agent.

 

(c)                                  Notice
of Termination Events, Potential Termination Events or Collection Agent
Defaults.  Immediately,
and in any event within one (1) Business Day after the Collection Agent
obtains knowledge of the occurrence of each Termination Event, Potential
Termination Event or Collection Agent Default, the Collection Agent will furnish
to the Administrative Agent and each Purchaser a statement of a Responsible
Officer of the Collection Agent setting forth details of such Termination
Event, Potential Termination Event or Collection Agent Default, and the action
which the Collection Agent, the Transferor or a Seller proposes to take with
respect thereto.

 

(d)                                 Conduct
of Business.  The
Collection Agent will do all things necessary to remain duly incorporated,
validly existing and in good standing as a domestic corporation in its jurisdiction
of incorporation and maintain all requisite authority to conduct its business
in each jurisdiction in which its business is conducted to the extent that the
failure to maintain such would have a Material Adverse Effect.

 

(e)                                  Compliance
with Laws.  The
Collection Agent will comply in all respects with all Laws with respect to the
Receivables to the extent that any non-compliance would have a Material Adverse
Effect.

 

(f)                                    Further
Information.  The
Collection Agent shall furnish or cause to be furnished to the Administrative
Agent and, after a Termination Event or a Potential Termination Event, any
Purchaser, such other information relating to the Receivables and readily
available public information regarding the financial condition of the
Collection Agent, as soon as reasonably practicable, and in such form and
detail, as the Administrative Agent may reasonably request

 

37

 

and,
after a Termination Event or a Potential Termination Event, as any Purchaser may
reasonably request.

 

SECTION 6.06.                                   Negative
Covenants of the Collection Agent.  At all times from the date hereof to the date
on which all Commitments have been terminated, the Net Investment has been
reduced to zero, and all accrued Discount, Fees, Servicing Fees and all other
Aggregate Unpaids have been paid in full in cash:

 

(a)                                  No
Sales, Liens, Etc.  Except as
otherwise provided herein, in the Receivables Purchase Agreement, in the Credit
Agreement and in the Indenture, the Collection Agent will not sell, assign (by
operation of law or otherwise) or otherwise dispose of, or create any Adverse
Claim upon (or file any financing statement) or with respect to (x) any of
the Receivables, Related Security, Collections or Proceeds with respect
thereto, (y) any Lock-Box Account (or any other account referred to in Section 5.01(i) to
which any Collections of any Receivables are sent, or assign any right to
receive income in respect thereof, or (z) grant any Adverse Claim or file
any financing statement (other than those granted in the Transaction Documents)
on or with respect to any inventory or goods, the sale of which may give rise
to a Receivable or a Collection.

 

(b)                                 Consolidations,
Mergers and Sales of Assets.  The Collection Agent shall not without the prior
written consent of the Administrative Agent, (i) consolidate or merge with
or into any other Person or (ii) sell, lease or otherwise transfer all or
substantially all of its assets to any other Person; provided
that the Collection Agent may consolidate or merge with another Person if (A)(1) the
Collection Agent is the corporation surviving such consolidation or merger or (2) the
Person into or with whom the Collection Agent is merged or consolidated is an
Affiliate and the surviving corporation assumes in writing all duties and
liabilities of the Collection Agent hereunder and (B) immediately after
and giving effect to such consolidation or merger, no Termination Event or
Potential Termination Event shall have occurred and be continuing.

 

(c)                                  Lock-Box
Accounts.  Except as
permitted pursuant to Section 2.09(b) of this Agreement or as
otherwise permitted under or required by the Transaction Documents, the
Collection Agent shall not make, or cause or permit any other Person to make
any transfer of funds on deposit in a Lock-Box Account.

 

(d)                                 Modifications
of Receivables or Contracts.  The Collection
Agent shall not extend, amend, forgive, discharge, compromise, waive, cancel or
otherwise modify the terms of any Receivable or amend, modify or waive any term
or condition of any Contract related thereto; provided
that the Collection Agent may take such actions as are expressly permitted by
the terms of any Transaction Document and are in accordance with the Credit and
Collection Policy.

 

SECTION 6.07.                                   Collection
Agent Default.  The
occurrence of any one or more of the following events shall constitute a
Collection Agent default (each, a “Collection Agent Default”):

 

(a)                                  (i) the
Collection Agent or, to the extent that the Transferor, TriMas Corp., any
Seller or any Affiliate of the Transferor or the Sellers is then acting as
Collection Agent, the

 

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Transferor,
TriMas Corp., such Seller or such Affiliate, as applicable, shall fail to
observe or perform any material term, covenant or agreement hereunder (other
than as referred to in clauses (ii) and (iii) of this Section 6.07(a)),
and such failure shall remain unremedied for ten (10) days, after a
Responsible Officer of the Collection Agent has knowledge thereof or (ii) the
Collection Agent or, to the extent that the Transferor, TriMas Corp., any
Seller or any Affiliate of the Transferor or the Sellers is then acting as
Collection Agent, the Transferor, TriMas Corp., such Seller or such Affiliate,
as applicable, shall fail to make any payment or deposit required to be made by
it hereunder when due and such failure remains uncured for one (1) Business
Day or the Collection Agent shall fail to observe or perform in any material
respect any term, covenant or agreement on the Collection Agent’s part to be
performed under Section 2.09(b) hereof, or (iii) the Collection
Agent fails to deliver any Settlement Statement within two (2) Business
Days of the date when due; or

 

(b)                                 any
representation, warranty, certification or statement made by the Collection
Agent in this Agreement, any other Transaction Document or in any other
document delivered pursuant hereto or thereto shall prove to have been
incorrect in any material respect when made or deemed made; provided that no such event shall
constitute a Collection Agent Default unless such event shall continue
unremedied for a period of ten (10) days from the date a Responsible
Officer of the Collection Agent obtains knowledge thereof; or

 

(c)                                  the Collection
Agent or any of its Subsidiaries shall fail to make any payment of principal or
interest in respect of any Indebtedness evidencing an aggregate outstanding
principal amount exceeding $15,000,000, when and as the same shall become due
and payable after giving effect to any applicable grace period with respect
thereto; or any event or condition occurs that results in any such Indebtedness
becoming due prior to its scheduled maturity or that enables or permits the
holder or holders of any such Indebtedness or any trustee or agent on its or
their behalf to cause any such Indebtedness to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to its
scheduled maturity; provided that this clause (c) shall
not apply to secured Indebtedness that becomes due as a result of the voluntary
sale or transfer of the property or assets securing such Indebtedness; or

 

(d)                                 an involuntary
proceeding described under clause (ii) of the definition of Event of
Bankruptcy shall occur and be continuing for sixty (60) days, or any other
Event of Bankruptcy shall occur and be continuing, in each case with respect to
the Collection Agent or any of its Subsidiaries; or

 

(e)                                  a Change of
Control shall have occurred; or

 

(f)                                    there shall
have occurred any event which, in the commercially reasonable judgment of the
Administrative Agent and the Required Purchasers materially and adversely
affects the Collection Agent’s ability to collect the Receivables under this
Agreement.

 

SECTION 6.08.                                   Responsibilities
of the Transferor and the Sellers.  Anything herein to the contrary
notwithstanding, the Transferor shall, and/or shall cause each Seller to, (i) perform
all of such Seller’s obligations under the Contracts related to the Receivables
to the same extent as if interests in such Receivables had not been sold
hereunder and under the Receivables Purchase Agreement and the exercise by the
Administrative Agent and the

 

39

 

Purchasers
of their rights hereunder and under the Receivables Purchase Agreement shall
not relieve the Transferor or the Seller from such obligations and (ii) pay
when due any taxes, including without limitation, any sales taxes payable in
connection with the Receivables and their creation and satisfaction.  Neither the Administrative Agent nor any of
the Purchasers shall have any obligation or liability with respect to any
Receivable or related Contracts, nor shall it be obligated to perform any of
the obligations of the Seller thereunder.

 

ARTICLE
VII

 

Termination
Events

 

SECTION 7.01.                                   Termination
Events.  The occurrence of any one or
more of the following events shall constitute a Termination Event:

 

(a)                                  TriMas Corp.,
TriMas LLC, the Transferor, any Seller or the Collection Agent shall fail to
make any payment or deposit to be made by it hereunder or under any of the
Transaction Documents when due hereunder or thereunder and such failure
continues for one (1) Business Day; or

 

(b)                                 any
representation, warranty, certification or statement made by TriMas Corp., the
Transferor, the Collection Agent or any Seller in this Agreement, any other
Transaction Document to which it is a party or in any other document delivered
pursuant hereto or thereto shall prove to have been incorrect in any material
respect when made or deemed made; provided
that no such event shall constitute a Termination Event unless such event shall
continue unremedied for a period of ten (10) days from the date a
Responsible Officer of the Transferor obtains knowledge thereof; provided, further, that no grace
period shall apply to Sections 3.01(c), 3.01(d), 3.01(j), 3.01(r) and 3.01(s) of
this Agreement (and, for the avoidance of doubt, the cure period described in
the first proviso of this Section 7.01(b) shall not apply to payments
required to be made pursuant to Section 2.10(b)); and provided,
further, that no such event shall constitute a Termination Event
if the Transferor shall have timely paid to the Collection Agent the Deemed
Collection required to be paid as a result of such event in accordance with Section 2.10(b);
or

 

(c)                                  TriMas Corp.,
the Transferor, any Seller or the Collection Agent shall default in the
performance of any payment, covenant or other undertaking (other than those
covered by clause (a) above or clause (h) below) under any
Transaction Document and such default shall continue for ten (10) days
after a Responsible Officer of TriMas Corp., TriMas LLC, the Transferor or the
Collection Agent has knowledge thereof; or

 

(d)                                 the Transferor
shall fail to make any payment of principal or interest in respect of any
Indebtedness when and as the same shall become due and payable after giving
effect to any applicable grace period with respect thereto; or any event or
condition occurs that results in any such Indebtedness becoming due prior to
its scheduled maturity or that enables or permits the holder or holders of any
such Indebtedness or any trustee or agent on its or their behalf to cause any
such Indebtedness to become due, or to require the prepayment, repurchase,
redemption or defeasance thereof, prior to its scheduled maturity; or

 

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(e)                                  any Event of
Bankruptcy shall occur with respect to the Transferor, the Collection Agent,
any Seller, TriMas Corp., or any of its Subsidiaries; or

 

(f)                                    after the
filing in the appropriate offices of the financing statements described in
Sections 4.02(b), 4.02(c), 4.02(d) and 4.02(e), the Administrative Agent,
on behalf of the Purchasers, shall, for any reason, fail or cease to have a
valid and perfected first priority ownership or security interest in the
Receivables and Related Security, Collections and Proceeds with respect
thereto, free and clear of any Adverse Claims (other than, in the case of the
Transferor, Liens for taxes, assessments or other governmental charges that are
not yet due and payable and, in the case of any Seller, Permitted Originator
Encumbrances); or

 

(g)                                 a Collection
Agent Default shall have occurred; or

 

(h)                                 the Transferor,
TriMas Corp., or any Seller shall enter into any corporate transaction or
merger that is not otherwise permitted by this Agreement or the Receivables
Purchase Agreement; or

 

(i)                                     there shall
have occurred since the Closing Date any event or condition which could
reasonably be expected to have a Material Adverse Effect; or

 

(j)                                     (i) the
Percentage Interest exceeds the Maximum Percentage Interest unless the Transferor
reduces the Net Investment from previously received Collections or other funds
available to the Transferor or increases the balance of the Receivables on the
next Business Day following such breach so as to reduce the Percentage Interest
to less than or equal to 100%; or (ii) the Net Investment shall exceed the
Facility Limit; or

 

(k)                                  the average
Dilution Ratio for the three preceding Calculation Periods exceeds 9.0%; or

 

(l)                                     the average
Default Ratio for the three preceding Calculation Periods exceeds 3.0%; or

 

(m)                               the average
Delinquency Ratio for the three preceding Calculation Periods exceeds 5.0%; or

 

(n)                                 a Responsible
Officer of the Transferor receives notice or becomes aware that a notice of
lien has been filed against TriMas Corp., TriMas LLC, the Transferor or the
Collection Agent under Section 412(n) of the Code or Section 302(f) of
ERISA for a failure to make a required installment or other payment to a plan
to which Section 412(n) of the Code or Section 302(f) of
ERISA applies; or

 

(o)                                 the Receivables
Purchase Agreement is terminated; or

 

(p)                                 TriMas Corp.,
TriMas LLC and the Sellers (in the aggregate) shall fail to maintain 100%
ownership of the Transferor; or

 

41

 

(q)                                 TriMas Corp.,
TriMas LLC or any of its Subsidiaries default in the observance or performance
of Section 6.12 or 6.13 of the Credit Agreement (whether or not such
agreement remains in effect).

 

SECTION 7.02.                                   Remedies
Upon the Occurrence of a Termination Event.  (a) Upon the occurrence of any
Termination Event, the Administrative Agent may, or at the direction of the
Required Purchasers shall, by notice to the Transferor and the Collection
Agent, declare the Termination Date to have occurred; provided,
however, that in the case of any event described in Section 7.01(e) above,
the Termination Date shall be deemed to have occurred automatically upon the
occurrence of such event.  At all times
after the declaration or automatic occurrence of the Termination Date pursuant
to this Section 7.02(a), the Applicable Margin shall increase by 200 basis
points.  If an event or condition shall
have occurred which constitutes a Potential Termination Event, of which the
Administrative Agent is aware, the Administrative Agent may advise the Transferor
of the occurrence of such Potential Termination Event.

 

(b)                                 In addition, if
any Termination Event occurs hereunder, the Administrative Agent shall promptly
notify the Transferor in writing whether it has declared the Termination Date
to have occurred and whether it will be exercising the remedies specified in
this Section 7.02.  From and after
the Termination Date, (i) the Administrative Agent, on behalf of the
Purchasers, shall have all of the rights and remedies provided to a secured
creditor or a purchaser of accounts under the Relevant UCC by applicable law in
respect thereto and (ii) (A) the Facility Limit shall be reduced as
of each calendar date thereafter equal to the Net Investment as of such date
and (B) the Percentage Interest shall be increased to 100%.

 

ARTICLE
VIII

 

The
Administrative Agent

 

SECTION 8.01.                                   Appointment.  Each of the Purchasers hereby irrevocably
designates and appoints the Administrative Agent as the agent of such Person
under this Agreement and irrevocably authorizes the Administrative Agent, in
such capacity, to take such action on its behalf under the provisions of this
Agreement and to exercise such powers and perform such duties as are expressly
delegated to the Administrative Agent by the terms of this Agreement, together with
such other powers as are reasonably incidental thereto.  Notwithstanding any provision to the contrary
elsewhere in this Agreement, (i) the Administrative Agent shall not have
any duties or responsibilities except those expressly set forth herein, or any
fiduciary relationship with any Purchaser, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or otherwise exist against the Administrative Agent; and (ii) in
no event shall the Administrative Agent be liable under or in connection with
this Agreement for indirect, special, or consequential losses or damages of any
kind, including lost profits, even if advised of the possibility thereof and
regardless of the form of action by which such losses or damages may be
claimed. In performing its functions and duties hereunder, the Administrative
Agent shall act solely as the agent of the Purchasers, and the Administrative
Agent does not assume, nor shall be deemed to have assumed, any trust or
fiduciary obligation or relationship with or for any such Person.  Without limiting the foregoing, in accordance
with customary practices in syndicate financings, the Administrative Agent will
promptly forward to each Purchaser any written information

 

42

 

delivered by or on behalf of the Transferor, any Seller or TriMas Corp.
or TriMas LLC to the Administrative Agent.

 

SECTION 8.02.                                   Delegation
of Duties.  The
Administrative Agent may execute any of its duties under this Agreement by or
through agents or attorneys-in-fact and shall be entitled to advice of counsel
(who may be counsel for the Transferor or the Collection Agent), independent
public accountants and other experts selected by it concerning all matters
pertaining to such duties. The Administrative Agent shall not be responsible
for the negligence or misconduct of any agents or attorneys in-fact selected by
it with reasonable care.

 

SECTION 8.03.                                   Exculpatory
Provisions.  Neither the
Administrative Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact or Affiliates shall be (i) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement (x) with the consent or at the request of
the Purchasers or (y) in the absence of its own gross negligence or
willful misconduct or (ii) responsible in any manner to any of the
Purchasers for any recitals, statements, representations or warranties made by
the Transferor, the Collection Agent, the Sellers or any officer thereof
contained in this Agreement or any other Transaction Document or in any
certificate, report, statement or other document referred to or provided for
in, or received by the Administrative Agent under or in connection with, this
Agreement or any other Transaction Document or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement,
any other Transaction Document, the Receivables (or any Related Security,
Collections and Proceeds with respect thereto) or any Transferred Interest or
for any failure of any of the Transferor, the Collection Agent, the Sellers or
the Obligors to perform its obligations hereunder or thereunder.  The Administrative Agent shall not be under
any obligation to any Purchaser to ascertain or to inquire as to the observance
or performance of any of the agreements contained in, or conditions of, this
Agreement or any other Transaction Document or to inspect the properties, books
or records of the Transferor, the Collection Agent or any Seller.

 

SECTION 8.04.                                   Reliance
by Administrative Agent.  The
Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any writing, resolution, notice, consent, certificate, affidavit,
letter, fax, e-mail, statement, order or other document or conversation
believed by it to be genuine and correct and to have been signed, sent or made
by the proper Person or Persons and upon advice and statements of legal counsel
(including, without limitation, counsel to the Transferor or the Collection
Agent), independent accountants and other experts selected by the
Administrative Agent and shall not be liable for any action taken or omitted to
be taken by it in good faith in accordance with the advice of such counsel,
accountants or experts.  The
Administrative Agent shall be fully justified in failing or refusing to take
any action under this Agreement or any other Transaction Document unless it
shall first receive such advice or concurrence of the Purchasers as it deems
appropriate or it shall first be indemnified to its satisfaction by the
Purchasers against any and all liability and expense which may be incurred by
it by reason of taking or continuing to take any such action.  The Administrative Agent shall in all cases
be fully protected in acting, or in refraining from acting, under this
Agreement and the other Transaction Documents in accordance with a request of
the Required Purchasers (unless, in the case of any action relating to the
giving of consent hereunder, the giving of such consent requires the consent of
all Purchasers), and such request and any action taken or failure to act
pursuant thereto shall be binding upon all of the Purchasers.

 

43

 

SECTION 8.05.                                   Notice
of Collection Agent Default.  The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Collection Agent Default
or any Termination Event unless the Administrative Agent has received notice
from a Purchaser, the Transferor or the Collection Agent referring to this
Agreement, describing such Collection Agent Default or Termination Event and
stating that such notice is a “notice of a Collection Agent Default” or “notice
of a Termination Event”, as the case may be. 
In the event that the Administrative Agent receives such a notice, the
Administrative Agent shall give notice thereof to the Purchasers, the
Transferor and the Collection Agent.  The
Administrative Agent shall take such action with respect to such event as shall
be reasonably directed by the Required Purchasers, provided
that unless and until the Administrative Agent shall have received such
directions, the Administrative Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such event as
it shall deem advisable in the best interests of the Purchasers.

 

SECTION 8.06.                                   Non-Reliance
on the Administrative Agent and Other Purchasers.  Each of the Purchasers expressly acknowledges
that neither the Administrative Agent nor any of its officers, directors,
employees, agents, attorneys-in-fact or Affiliates has made any representations
or warranties to it and that no act by the Administrative Agent hereinafter
taken, including any review of the affairs of the Transferor, shall be deemed
to constitute any representation or warranty by the Administrative Agent to any
such Person.  Each of the Purchasers
represents to the Administrative Agent that it has, independently and without
reliance upon the Administrative Agent or any other Purchaser and based on such
documents and information as it has deemed appropriate, made its own appraisal
of and investigation into the business, operations, property, financial and
other condition and creditworthiness of the Transferor, the Collection Agent
and the Sellers and made its own decision to enter into this Agreement.  Each of the Purchasers also represents that
it will, independently and without reliance upon the Administrative Agent or
any other Purchaser, and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement
and the other Transaction Documents, and to make such investigation as it deems
necessary to inform itself as to the business, operations, property, financial
and other condition and creditworthiness of the Transferor, the Collection
Agent and the Sellers.  Except for
notices, reports and other documents expressly required to be furnished to the
Purchasers by the Administrative Agent hereunder, the Administrative Agent
shall have no duty or responsibility to provide any Purchaser with any credit
or other information concerning the business, operations, property, condition
(financial or otherwise), prospects or creditworthiness of the Transferor, the
Collection Agent or the Sellers which may come into the possession of the
Administrative Agent or any of its officers, directors, employees, agents,
attorneys-in-fact or Affiliates.

 

SECTION 8.07.                                   Indemnification.  Each of the Purchasers, severally and not
jointly, agrees to indemnify the Administrative Agent in its capacity as such
(to the extent not reimbursed by the Transferor, the Collection Agent and the
Sellers and without limiting the obligation of the Transferor, the Collection
Agent and the Sellers to do so) ratably in accordance with their respective Pro
Rata Shares, from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind whatsoever which may at any time be imposed on, incurred by or
asserted against the Administrative Agent in any way relating to or arising out
of this Agreement, any of the other

 

44

 

Transaction
Documents or any documents contemplated by or referred to herein or therein or
the transactions contemplated hereby or thereby or any action taken or omitted
by the Administrative Agent under or in connection with any of the foregoing; provided that no Purchaser shall be
liable for the payment of any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting solely from the Administrative Agent’s gross negligence or willful
misconduct.  The agreements in this Section shall
survive the payment of all amounts payable hereunder.

 

SECTION 8.08.                                   The
Administrative Agent in Its Individual Capacity.  The Administrative Agent and its Affiliates
may make loans to, accept deposits from and generally engage in any kind of
business with the Transferor, the Collection Agent or any of their Affiliates
as though the Administrative Agent were not the Administrative Agent hereunder.  With respect to any Transferred Interest held
by the Administrative Agent, the Administrative Agent shall have the same
rights and powers under this Agreement and the other Transaction Documents as
any Purchaser and may exercise the same as though it were not the Administrative
Agent, and the term “Purchaser” shall include the Administrative Agent in its
individual capacity.

 

SECTION 8.09.                                   Resignation
of Administrative Agent; Successor Administrative Agent.  The Administrative Agent may resign as
Administrative Agent at any time by giving thirty (30) days’ notice to the
Purchasers, the Transferor and the Collection Agent.  The Administrative Agent may be removed at
any time by a resolution of the Required Purchasers, removing the
Administrative Agent and appointing from among the Purchasers a successor
administrative agent, which successor administrative agent shall be approved by
the Transferor and the Collection Agent (which approval shall not be
unreasonably withheld), delivered to the Administrative Agent and the Collection
Agent.  If Wachovia shall resign as
Administrative Agent under this Agreement, then the Required Purchasers, shall
promptly appoint a successor administrative agent from among the Purchasers,
which successor administrative agent shall be approved by the Transferor and
the Collection Agent (which approval shall not be unreasonably withheld).  If no successor administrative agent is
appointed prior to the effective date of the resignation of the Administrative
Agent, the Administrative Agent may appoint, after consulting with the
Purchasers, the Transferor and the Collection Agent, a successor agent from
among the Purchasers.  If no successor
administrative agent has accepted appointment as Administrative Agent by the
date which is thirty (30) days following a retiring Administrative agent’s
notice of resignation, the retiring Administrative Agent’s resignation shall
nevertheless thereupon become effective and the Collection Agent shall assume
and perform all of the duties of the Administrative Agent hereunder until such
time, if any, as the Required Purchasers appoint a successor agent as provided
for above.  Effective upon the
appointment of a successor administrative agent, such successor administrative
agent shall succeed to the rights, powers and duties of the Administrative
Agent, and the term “Administrative Agent” shall mean such successor
administrative agent effective upon such appointment and approval, and the
former Administrative Agent’s rights, powers and duties as Administrative Agent
shall be terminated, without any other or further act or deed on the part of
such former Administrative Agent or any of the parties to this Agreement.  After any retiring Administrative Agent’s
resignation as Administrative Agent, the provisions of this Article VII
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent under this Agreement.

 

45

 

ARTICLE
IX

 

Limited
Guaranty

 

SECTION 9.01.                                   Guaranty
of Obligations.  The
Guarantor unconditionally guarantees the full and prompt payment when due of
all of the payment obligations and the timely performance of all of the
performance obligations of the Sellers of every kind and nature now or
hereafter existing, or due or to become due, under the Transaction Documents
(collectively, the “Obligations”); provided that, such Obligations
shall not include amounts not collected in respect of any Receivable as a
result of the lack of creditworthiness of an Obligor, including, but not
limited to, amounts required to be returned to an Obligor as a voidable
preference.  The Guarantor shall pay all
reasonable costs and expenses including, without limitation, all court costs
and reasonable attorney’s fees and expenses paid or incurred by the
Administrative Agent and the other Beneficiaries in connection with (a) the
collection of all or any part of the Obligations from the Guarantor and (b) the
prosecution or defense of any action by or against the Administrative Agent,
the other Beneficiaries or the Transferor in connection with, or relating to,
the Obligations, whether involving the Sellers, the Collection Agent, the
Guarantor, the Transferor or any other party (including, but not limited to, a
trustee in a bankruptcy or a debtor-in-possession).

 

SECTION 9.02.                                   Validity
of Obligations; Irrevocability.  The Guarantor agrees that subject to the
proviso set forth in Section 9.01 above its obligations under this
Guaranty shall be unconditional, irrespective of (i) the validity, enforceability,
discharge, disaffirmance, settlement or compromise (by any Person, including a
trustee in a bankruptcy or a debtor-in-possession) of the Obligations or of the
Transaction Documents or any Contract, (ii) the absence of any attempt to
collect the Obligations from a Seller or the Collection Agent or any other
party, (iii) the waiver or consent by any Person with respect to any
provision of any instrument evidencing the Obligations, (iv) any change of
the time, manner or place of payment or performance, or any other term of any
of the Obligations, (v) any law, regulation or order of any jurisdiction
affecting any term of any of the Obligations or rights of any Person with
respect thereto, (vi) the failure by any Person to take any steps to
perfect and maintain perfected its interest in the Receivables or any security
or collateral related to the Obligations or (vii) any other circumstances
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor or surety.  The Guarantor
agrees that the Administrative Agent and the Beneficiaries shall be under no
obligation to marshal any assets in favor of or against or in payment of any or
all of the Obligations.  The Guarantor
further agrees that, to the extent a payment is made by a Seller or the
Collection Agent under the Transaction Documents, which payment or payments or
any part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside and/or required to be repaid to such Seller or the
Collection Agent, its estate, trustee, receiver or any other party, under any
bankruptcy, insolvency or similar state or federal law, common law or equitable
cause, then to the extent of such payment or repayment, the Obligation or part
thereof which has been paid, reduced or satisfied by such amount shall be
reinstated and continued in full force and effect as of the date such initial
payment, reduction or satisfaction occurred. 
The Guarantor waives all set-offs, defenses and counterclaims and all
presentments, demands for performance, notices of dishonor and notice of
acceptance of this Guaranty.  The
Guarantor’s obligations under this Guaranty shall be irrevocable.

 

46

 

SECTION 9.03.                                   Several
Obligations.  The
obligations of the Guarantor hereunder are separate and apart from the Sellers
or any other Person, and are primary obligations concerning which the Guarantor
is the principal obligor. This Guaranty shall not be discharged except by
payment in full of the Obligations and complete performance of the obligations
of the Guarantor hereunder.  The
obligations of the Guarantor hereunder shall not be affected in any way by the
release or discharge of a Seller from the performance of any of the Obligations
(other than the full and final payment of all of the Obligations), whether
occurring by reason of law or any other cause, whether similar or dissimilar to
the foregoing.

 

SECTION 9.04.                                   Subrogation
Rights.  If any amount shall be paid to
the Guarantor on account of subrogation rights relating to the Obligations at
any time when all the Obligations shall not have been paid in full, such amount
shall be held in trust for the benefit of the Administrative Agent, on behalf
of the Beneficiaries, and shall forthwith be paid to the Administrative Agent
to be applied to the Obligations.  If (a) the
Guarantor shall make payment to the Administrative Agent of or perform all or
any part of the Obligations and (b) all the Obligations shall be paid and
performed in full, the Administrative Agent will, at the Guarantor’s request,
execute and deliver to the Guarantor appropriate documents, without recourse
and without representation or warranty, necessary to evidence the transfer by
subrogation to the Guarantor of any interest in the Obligations resulting from
such payment or performance by the Guarantor. 
The Guarantor shall have no rights of subrogation with respect to
amounts due to the Administrative Agent or the Beneficiaries until such time as
all obligations of the Sellers to the Transferor, the Administrative Agent and
the Beneficiaries have been paid or performed in full and this Agreement has
been terminated.

 

SECTION 9.05.                                   Rights
of Set-Off.  The
Guarantor hereby authorizes the Administrative Agent, on behalf of the
Beneficiaries, at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (whether general or
special, time or demand, provisional or final) at any time held and other
indebtedness at any time owing by the Administrative Agent or the Beneficiaries
to or for the credit or the account of the Guarantor against any and all of the
obligations of the Guarantor now or hereafter existing under this Guaranty
(even if contingent or unmatured).  The
Guarantor hereby acknowledges that rights of the Administrative Agent, on
behalf of the Beneficiaries, described in this Section 9.05 are in
addition to all other rights and remedies (including, without limitation, other
rights of set-off) the Administrative Agent and the Beneficiaries may have.

 

SECTION 9.06.                                   Representations
and Warranties.  The
Guarantor hereby represents and warrants to the Administrative Agent, for the
benefit of the Beneficiaries, as of the date hereof, as follows:

 

(a)                                  Existence
and Power.  The
Guarantor is a limited liability company duly organized, validly existing and
in good standing under the laws of Delaware and has all limited liability
company power and all material governmental licenses, authorizations, consents
and approvals required to carry on its business in each jurisdiction in which
its business is now conducted.  The
Guarantor is duly qualified to do business in, and is in good standing in,
every other jurisdiction in which the nature of its business requires it to be
so qualified, except where the failure to be so qualified or in good standing
would not have a Material Adverse Effect.

 

47

 

(b)                                 LLC and
Governmental Authorization; Contravention.  The execution, delivery and performance by
the Guarantor of this Guaranty and the other Transaction Documents to which the
Guarantor is a party are within the Guarantor’s limited liability company
powers, have been duly authorized by all necessary limited liability company
action, require no action by or in respect of, or filing with, any Official
Body or official thereof, and do not contravene, or constitute a default under,
any provision of applicable law, rule or regulation or of the Certificate
of Formation of the Guarantor or of any material agreement, judgment,
injunction, order, writ, decree or other instrument binding upon the Guarantor
or result in the creation or imposition of any Adverse Claim on the assets of
the Guarantor or any of its Subsidiaries (except as contemplated by Section 2.09).

 

(c)                                  Binding
Effect.  Each of this Guaranty and the
other Transaction Documents to which the Guarantor is a party constitutes the
legal, valid and binding obligation of the Guarantor, enforceable in accordance
with its terms, subject to applicable bankruptcy, insolvency, moratorium or
other similar laws affecting the rights of creditors and general equitable
principles (whether considered in a proceeding at law or in equity).

 

(d)                                 Accuracy
of Information.  All written
information heretofore furnished by the Guarantor to the Administrative Agent
or the Beneficiaries for purposes of or in connection with this Guaranty, the
other Transaction Documents or any transaction contemplated hereby or thereby
is, and all such written information hereafter furnished by the Guarantor to
the Administrative Agent or the Beneficiaries will be, true and accurate in
every material respect on the date such information is stated or certified.

 

(e)                                  Tax
Status.  The Guarantor has filed all tax
returns (Federal, state and local) required to be filed and has paid prior to
delinquency or made adequate provision for the payment of all taxes,
assessments and other governmental charges (including for such purposes, the
setting aside of appropriate reserves for taxes, assessments and other governmental
charges being contested in good faith).

 

(f)                                    Action,
Suits.  Except as set forth in the
TriMas Corp. Form 10-Q for the period ended September 30, 2009, there
are no actions, suits or proceedings pending, or to the knowledge of the
Guarantor threatened, against or affecting the Guarantor or any Affiliate of
the Guarantor or their respective properties, in or before any court,
arbitrator or other body, which may, individually or in the aggregate, have a
Material Adverse Effect.

 

(g)                                 Not an
Investment Company.  The
Guarantor is not, nor is it controlled by, an “investment company” within the
meaning of the Investment Company Act of 1940, as amended, or is exempt from
all provisions of such Act.

 

ARTICLE
X

 

Miscellaneous

 

SECTION 10.01.                            Term of
Agreement.  This
Agreement shall terminate on the date following the Termination Date upon which
the Net Investment has been reduced to zero, and all accrued Discount, Fees,
Servicing Fees and all other Aggregate Unpaids have been paid in full,

 

48

 

in each case, in cash; provided,
however, that the rights and remedies of the Administrative
Agent and the Purchasers with respect to any representation and warranty made
or deemed to be made by the Transferor or the Seller pursuant to this
Agreement, and (ii) the indemnification and expense payment provisions of
this Agreement, shall be continuing and shall survive any termination of this
Agreement.

 

SECTION 10.02.                            Waivers;
Amendments.  No failure
or delay on the part of the Administrative Agent or any Purchaser in exercising
any power, right or remedy under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any such power, right or
remedy preclude any other further exercise thereof or the exercise of any other
power, right or remedy.  The rights and
remedies herein provided shall be cumulative and nonexclusive of any rights or
remedies provided by law.  Any provision
of this Agreement may be amended or waived if, but only if, such amendment or
waiver is in writing and is signed by the parties hereto and the Required
Purchasers; provided, however, that no
such amendment or waiver shall, without the consent of each affected Purchaser,
(A) extend the Termination Date or the date of any payment or deposit of
Collections by the Transferor or the Collection Agent, (B) reduce the rate
or extend the time of payment of any Discount, interest or fees hereunder or
under any Fee Letter, (C) change the amount of any Purchaser’s Pro Rata
Share or Commitment, (D) consent to or permit the assignment or transfer
by the Transferor of any of its rights or obligations under this Agreement, (E) amend
or modify the definitions of “Percentage Interest” or “Required Purchasers” or
any other defined term used in such definitions, to the extent used in such
definitions, (F) amend or modify this Section 10.02, (G) change
the Net Investment held by any Purchaser, (H) at any time while there are
two or fewer Purchasers, amend or waive any Collection Agent Default under Section 6.07(e),
(I) amend or waive any Termination Event described in Sections 7.01(e),
7.01(f), 7.01(j), 7.01(k), 7.01(l), 7.01(m) or 7.01(p), (J) release
or terminate any interest created hereunder in any Receivables or Related
Security with respect thereto, or (K) amend or waive any provision of Section 2.12(a).

 

SECTION 10.03.                            Notices.  Except as provided below, all communications
and notices provided for hereunder shall be in writing (including telecopy,
electronic mail, electronic facsimile transmission or similar writing) and
shall be given to the other party at its address or telecopy number set forth
below or at such other address or telecopy number as such party may hereafter
specify for the purposes of notice to such party.  Each such notice or other communication shall
be effective (i) if given by telecopy, when such telecopy is transmitted
to the telecopy number specified in this Section 10.03 and confirmation is
received, (ii) if given by mail three (3) Business Days following
such posting, postage prepaid, U.S. certified or registered, (iii) if
given by overnight courier, one (1) Business Day after deposit thereof
with a national overnight courier service, or (iv) if given by any other
means, when received at the address specified in this Section 10.03.  However, anything in this Section 10.03
to the contrary notwithstanding, the Transferor hereby authorizes the
Administrative Agent and each Purchaser to effect Transfers, and, as
applicable, Tranche Period selections based on telephonic notices made by any
Person which the Administrative Agent or such Purchaser in good faith believes
to be acting on behalf of the Transferor. 
The Transferor agrees to deliver promptly to the Administrative Agent
and each Purchaser a written confirmation of each telephonic notice signed by
an authorized officer of Transferor. 
However, the absence of such confirmation shall not affect the validity
of such notice.  If the written confirmation
differs in any material respect from

 

49

 

the
action taken by the Administrative Agent or such Purchaser, the records of the
Administrative Agent or such Purchaser shall govern absent manifest error.

 

If to a Purchaser, to its
address set forth on Schedule B (with a copy to the Administrative Agent).

 

If
to the Transferor:

 

	
   

  	
  TSPC, Inc.

  
	
   

  	
  2520
  Saint Rose Parkway, Suite 212

  
	
   

  	
  Henderson,
  NV 89074-7787

  
	
   

  	
  Attention:
  Michael DeWinter

  
	
   

  	
  Telephone:
  (702) 836-3510

  
	
   

  	
  Telecopy:
  (702) 925-3905

  
	
   

  	
   

  
	
   

  	
  with
  a copies to:

  
	
   

  	
   

  
	
   

  	
  Comptroller
  and General Counsel

  
	
   

  	
  39400
  Woodward Avenue Suite 130

  
	
   

  	
  Bloomfield
  Hills, MI 48304

  
	
   

  	
  Telephone:
  (248) 631-5400

  Telecopy:
  (248) 631-5413

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  Douglas
  Horowitz

  
	
   

  	
  Cahill
  Gordon & Reindel LLP

  
	
   

  	
  80
  Pine Street

  
	
   

  	
  New
  York, NY 10005

  
	
   

  	
  Telecopy:
  (212) 269-5420

  
	
   

  	
   

  
	
   

  	
  If to the Sellers, as
  provided in Section 9.03 of the Receivables Purchase Agreement.

  
	
   

  	
   

  
	
   

  	
  If
  to the Administrative Agent:

  
	
   

  	
   

  
	
   

  	
  Wachovia
  Bank, National Association

  6
  Concourse Parkway, Suite 1450

  
	
   

  	
  Atlanta,
  GA 30328

  
	
   

  	
  Attention:

  	
  Eero
  Maki

  
	
   

  	
  Telephone:

  	
  (404)
  732-0821

  
	
   

  	
  Telecopy:

  	
  (404)
  732-0801

  
	
   

  	
  E-mail:

  	
  Eero.Maki@wachovia.com

  

 

If to the Purchasers, at
their respective addresses set forth on Schedule B.

 

50

 

SECTION 10.04.                            Governing
Law; Submission to Jurisdiction; Integration.  (a) This Agreement shall be governed by,
and construed in accordance with the laws of the State of New York.  Each of the parties hereto hereby submits to
the nonexclusive jurisdiction of the United States District Court for the
Southern District of New York and of any New York state court sitting in The
City of New York for purposes of all legal proceedings arising out of or
relating to this Agreement or the transactions contemplated hereby.  Each of the parties hereto hereby irrevocably
waives, to the fullest extent it may effectively do so, any objection which it
may now or hereafter have to the laying of the venue of any such proceeding
brought in such a court and any claim that any such proceeding brought in such
a court has been brought in an inconvenient forum.  Nothing in this Section 10.04 shall
affect the right of any party hereto to bring any action or proceeding against
any party hereto or its respective properties in the courts of other
jurisdictions.

 

(b)                                 Each of the
parties hereto hereby waives any right to have a jury participate in resolving
any dispute, whether sounding in contract, tort or otherwise among any of them
arising out of, connected with, relating to or incidental to the relationship
between them in connection with this Agreement or the other Transaction
Documents.

 

(c)                                  This Agreement
contains the final and complete integration of all prior expressions by the
parties hereto with respect to the subject matter hereof and shall constitute
the entire Agreement among the parties hereto with respect to the subject
matter hereof superseding all prior oral or written understandings.

 

SECTION 10.05.                            Severability;
Counterparts.  This
Agreement may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which when taken together shall
constitute one and the same Agreement. 
Any provisions of this Agreement which are prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in
any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

 

SECTION 10.06.                            Successors
and Assigns.  (a) This
Agreement shall be binding on the parties hereto and their respective
successors and assigns; provided, however, that
(i) the Transferor may not assign any of its rights or delegate any of its
duties hereunder or under any of the other Transaction Documents to which it is
a party without the prior written consent of the Administrative Agent and the Purchasers,
(ii) neither the Guarantor nor any Seller may assign any of its rights or
delegate any of its duties hereunder or under any of the other Transaction
Documents to which it is a party without the prior written consent of the
Administrative Agent and the Required Purchasers, and (iii) without the
prior written consent of the Administrative Agent and the Required Purchasers,
the Collection Agent may not assign any of its rights or delegate any of its
duties hereunder or under any of the other Transaction Documents to which it is
a party except as permitted in Section 10.06(b).  No provision of this Agreement shall in any
manner restrict the ability of any Purchaser to assign, participate, grant
security interests in, or otherwise transfer any portion of the Transferred
Interest as provided in this Section 10.06.

 

51

 

(b)                                 Assignments
and Delegation by Collection Agent.  So long as TriMas Corp. or any of its
Affiliates is acting as the Collection Agent, the Collection Agent may delegate
certain of its duties and responsibilities as Collection Agent hereunder to the
Sellers in accordance with the Receivables Purchase Agreement, so long as the
Collection Agent remains primarily liable to the Administrative Agent and the
Purchasers for the full and prompt performance of all duties and
responsibilities of the Collection Agent hereunder.  Notwithstanding any such delegation by the
Collection Agent, the Administrative Agent and the Purchasers shall be entitled
to deal exclusively with the Collection Agent in matters relating to the
discharge by the Collection Agent of its duties and responsibilities hereunder,
and the Administrative Agent and the Purchasers shall not be required to give
notice, demand or other communication to any Person other than the Collection
Agent in order for communication to the Collection Agent and the Sellers as its
subservicers or delegates in respect thereof to be accomplished.  In addition to the foregoing, in order to
facilitate the collection of certain Defaulted Receivables and Fully-Diluted
Receivables, the Collection Agent may delegate certain of its duties and
responsibilities as Collection Agent hereunder in respect of such Receivables
to outside collection agencies in accordance with past practices, and provided
that no Termination Event or Potential Termination Event exists and is
continuing, the Transferor may assign such Defaulted Receivables and
Fully-Diluted Receivables to such collection agencies for collection, free and
clear of any ownership interest or security interest of the Administrative
Agent and the Purchasers.

 

(c)                                  Participations.  Any Purchaser may, with the consent of the
Administrative Agent and in the ordinary course of its business and its
accordance with applicable law, at any time sell to one or more Persons (each,
a “Participant”) participating
interest in its rights and obligations hereunder and under the Transaction
Documents; provided, however, that each
Participant shall purchase an identical percentage in such selling Purchaser’s
Commitment, and Pro Rata Share of the Funded Amount.  Notwithstanding any such sale by a Purchaser
of a participating interest to a Participant, such Purchaser’s rights and
obligations under this Agreement shall remain unchanged, such Purchaser shall
remain solely responsible for the performance hereof, and the Administrative
Agent shall continue to deal solely and directly with such Purchaser in
connection with such Purchaser’s rights and obligations under this Agreement
and the other Transaction Documents. 
Each Purchaser agrees that any agreement between such Purchaser and any
such Participant in respect of such participating interest shall not restrict
such Purchaser’s right to agree to any amendment, supplement, waiver or modification
to this Agreement.

 

(d)                                 Assignments.

 

(i)                                     Any Purchaser
may at any time and from time to time, upon the prior written consent of the
Administrative Agent, and, if the Assignee is not an Affiliate of the selling
Purchaser, the prior written consent of the Transferor (which consent shall not
be unreasonably withheld), assign to one or more accredited investors or other
Persons (“Assignee(s)”) all or any
part of its rights and obligations under this Agreement and the other
Transaction Documents pursuant to a supplement to this Agreement, substantially
in the form of Exhibit K hereto (each, a “Transfer
Supplement”), executed by the Assignee, such selling Purchaser,
the Administrative Agent and, if applicable, the Transferor; and provided, however, that (A) each
Assignee shall purchase an identical percentage in such selling Purchaser’s
Commitment and Pro Rata Share of its Funded Amount, (B) any such
assignment cannot be for an amount less than the lesser of (1)

 

52

 

$5,000,000 and (2) such
selling Purchaser’s Commitment or Pro Rata Share of the Funded Amount
(calculated at the time of such assignment) and (C) each Assignee must be
a “qualified institutional buyer” (as defined in Rule 144A under the Securities
Act of 1933, as amended).

 

(ii)                                  [intentionally
deleted].

 

(iii)                               Upon (A) execution
of a Transfer Supplement, (B) delivery of an executed copy thereof to the
Administrative Agent, and (C) payment, if applicable, by the Assignee to
such selling Purchaser of an amount equal to the purchase price agreed between
such selling Purchaser and the Assignee, such selling Purchaser shall be
released from its obligations hereunder to the extent of such assignment and
the Assignee(s) shall, for all purposes, be a Purchaser party to this
Agreement and shall have all the rights and obligations of a Purchaser under
this Agreement to the same extent as if it were an original party hereto, and
no further consent or action by the Purchasers or the Administrative Agent shall
be required.  The amount of the assigned
portion of the selling Purchaser’s Pro Rata Share of the Funded Amount
allocable to the Assignee shall be equal to the Transferred Percentage (as
defined in the Transfer Supplement) of such selling Purchaser’s Pro Rata Share
of the Funded Amount which is transferred thereunder regardless of the purchase
price paid therefor.  Such Transfer
Supplement shall be deemed to amend this Agreement to the extent, and only to
the extent, necessary to reflect the addition of the Assignee as a Purchaser
and the resulting adjustment of the selling Purchaser’s Commitment arising from
the purchase by the Assignee of all or a portion of the selling Purchaser’s
rights, obligations and interest hereunder.

 

(iv)                              Notwithstanding
any other provision of this Agreement to the contrary, any Purchaser may at any
time pledge or grant a security interest in all or any portion of its rights
(including, without  limitation, any
Transferred Interest and any rights to payment of Net Investment, Discount and
any other amounts) under this Agreement to secure obligations of such Purchaser
to a Federal Reserve Bank, and this Section shall not apply to any such
pledge or grant of a security interest; provided
that no such pledge or grant of a security interest shall release a Purchaser
from any of its obligations hereunder, or substitute any such pledgee or
grantee for such Purchaser as a party hereto.

 

SECTION 10.07.                            Confidentiality.  (a) Each of the Transferor, the
Collection Agent and the Guarantor shall maintain, and shall cause each
officer, employee and agent of itself and its Affiliates to maintain, the
confidentiality of the Transaction Documents and all other confidential
proprietary information with respect to the Purchasers and the Administrative
Agent and each of their respective businesses obtained by them in connection
with the structuring, negotiation and execution of the transactions
contemplated herein and in the other Transaction Documents, except for
information that has become publicly available or information disclosed (i) to
legal counsel, accountants and other professional advisors to the Transferor,
the Collection Agent, the Guarantor and their respective Affiliates, (ii) as
required by law, regulation or legal process (including in connection with any
registration Statement or other filing made with the Commission) or in
connection with any legal or regulatory proceeding to which the Transferor, the
Collection Agent, the Guarantor or any of their respective Affiliates is
subject.  Each of the Transferor, the
Collection Agent and the Guarantor hereby consents to the disclosure of any 

 

53

 

nonpublic
information with respect to it received by any Purchaser or the Administrative
Agent to any other Purchaser, any potential Purchaser, any Participant or any
potential Participant.

 

(b)                                 Each of the
Purchasers and the Administrative Agent shall maintain, and shall cause each
officer, employee and agent of itself and its Affiliates to maintain, the
confidentiality of the Transaction Documents and all other confidential
proprietary information with respect to the Transferor, the Sellers, the
Guarantor and their Affiliates and each of their respective businesses obtained
by them in connection with the structuring, negotiation and execution of the
transactions contemplated herein and in the other Transaction Documents, except
for information that has become publicly available except that such information
may be disclosed (i) to legal counsel, accountants and other professional
advisors to the Purchasers, the Administrative Agent and their respective
Affiliates, (ii) as required by law, regulation or legal process or (iii) pursuant
to the order of any court or administrative agency or in any pending legal or
administrative proceeding, (iv) to any other Person specified in the last
sentence of Section 10.07(a), or (v) upon the request of demand of
any regulatory authority having jurisdiction over the Administrative Agent or
any Purchaser.

 

SECTION 10.08.                            Characterization
of the Transactions Contemplated by the Agreement.  (a)  It is the intention of the parties
that the transactions contemplated hereby constitute (other than for tax
purposes) the sale of the Transferred Interest, conveying good title thereto
free and clear of any Adverse Claims to the Purchasers, and that the
Transferred Interest not be part of the Transferor’s estate in the event of an
insolvency.  If, notwithstanding the
foregoing, the transactions contemplated hereby should be deemed a financing,
the parties intend that the Transferor shall be deemed to have granted to the
Administrative Agent, on behalf of the Purchasers, and the Transferor hereby
grants to the Administrative Agent, on behalf of the Purchasers, a first
priority perfected and continuing security interest in all of the Transferor’s
right, title and interest in, to and under the Receivables outstanding on the
Initial Incremental Transfer Date and thereafter owned by the Transferor,
together with the Related Security and Collections with respect thereto and all
Proceeds of the foregoing, whether now owned or hereafter acquired and wherever
located, the Lock-Box Accounts, and all of the Transferor’s rights under the
Receivables Purchase Agreement with respect to the Receivables and with respect
to any obligations thereunder of the Seller with respect to the Receivables,
and that this Agreement shall constitute a security agreement under applicable
law.  If, notwithstanding the intention of
the parties expressed above, any sale or transfer by the Transferor hereunder
shall be characterized as a secured loan and not a sale or such sale shall for
any reason be ineffective or unenforceable, the Transferor represents and
warrants that each remittance of Collections to the Administrative Agent or the
Purchasers hereunder will have been (i) in payment of a debt incurred in
the ordinary course of business or financial affairs and (ii) made in the
ordinary course of business or financial affairs. The Transferor hereby assigns
to the Administrative Agent, on behalf of the Purchasers, all of its rights and
remedies under the Receivables Purchase Agreement with respect to the
Receivables and with respect to any obligations thereunder of the Seller with
respect to the Receivables.  The Transferor
shall not give any consent or waiver required or permitted to be given under
the Receivables Purchase Agreement without the prior consent of the
Administrative Agent and the Required Purchasers, such consent not to be
unreasonably withheld.

 

54

 

(b)                                 It is the
intention of the parties that the transactions contemplated by the Receivables
Transfer Agreement will create a debt obligation of the Transferor for United
States Federal, state and local income and franchise tax purposes.  Unless otherwise required by law, the parties
agree to treat the transactions accordingly for all such purposes.

 

SECTION 10.09.                            Limitation
on the Termination of Sellers.  Notwithstanding anything to the contrary
contained in the Receivables Purchase Agreement, the Transferor shall not
consent to any request made pursuant to Section 8.03 thereof, nor shall
any Seller or Seller Division which is the subject of such request be
terminated under the Receivables Purchase Agreement, in each case unless (i) no
Termination Event or Potential Termination Event (other than with respect to
the Seller or Seller Division to be so terminated) has occurred and is
continuing (both before and after giving effect to such termination) and (ii) the
Administrative Agent shall have received prior notice of such termination.

 

55

 

IN WITNESS WHEREOF, the
parties hereto have executed and delivered this Receivables Transfer Agreement
as of the date first written above.

 

	
   

  	
  TSPC,
  INC., as Transferor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  ROBERT J. ZALUPSKI

  
	
   

  	
  Name:
  Rober J. Zalupski

  
	
   

  	
  Title:
  Vice President & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRIMAS
  CORPORATION, individually, as Collection Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  A. MARK ZEFFIRO

  
	
   

  	
  Name:
  A. Mark Zeffiro

  
	
   

  	
  Title:
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRIMAS
  COMPANY, LLC, individually, as Guarantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  JOSHUA A. SHERBIN

  
	
   

  	
  Name:
  Joshua A. Sherbin

  
	
   

  	
  Title:
  Vice President & Secretary

  

 

56

 

	
   

  	
  WACHOVIA
  BANK, NATIONAL ASSOCIATION, individually and as Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  EERO H. MAKI

  
	
   

  	
  Name:
  Eero H. Maki

  
	
   

  	
  Title:
  Director

  

 

57

 

SCHEDULE A

 

DEFINITIONS

 

“ABR
Tranche” shall mean a Tranche as to which Discount is calculated at the sum
of the Alternate Base Rate plus the Applicable Margin.

 

“ABR
Tranche Period” shall mean a calendar month or any portion thereof.

 

“Administrative
Agent” shall mean Wachovia, as administrative agent on behalf of the
Purchasers, and any successor appointed pursuant to Section 8.09 of the
Receivables Transfer Agreement.

 

“Administrative
Agent’s Account” shall mean account no. 2070482789126, account name: Leverage
Finance – NC, at Wachovia Bank, National Association, ABA No. 053000219,
Reference:  TSPC, Inc., or any other
account or accounts as the Administrative Agent may indicate from time to time.

 

“Adjusted
Dilution Ratio” means, at any time, the rolling average of the Dilution
Ratio for the 12 Calculation Periods then most recently ended.

 

“Advance”
shall have the meaning specified in Section 3.02(b) of the
Receivables Purchase Agreement.

 

“Adverse
Claim” shall mean a lien, security interest, charge or encumbrance, or
other right or claim in, of or on any Person’s assets or properties in favor of
any other Person (including any UCC financing statement or any similar
instrument properly filed against such Person’s assets or properties).

 

“Affiliate”
shall mean, with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with,
such Person.  A Person shall be deemed to
control another Person if the controlling Person possesses, directly or
indirectly, the power to direct or cause the direction of the management or
policies of the controlled Person, whether through ownership of voting stock,
by contract or otherwise.

 

“Aggregate
Commitment” shall mean, at any time, the sum of the Commitments then in
effect.

 

“Aggregate
Unpaids” shall mean, at any time, an amount equal to the sum of (i) the
aggregate accrued and unpaid Discount at such time, (ii) the Net
Investment at such time, (iii) all Fees, (iv) all Indemnified
Amounts, amounts payable pursuant to Section 2.21 and Indemnified Taxes
and (v) all other amounts owed (whether due or accrued) by the Transferor
to the Purchasers at such time.

 

“Alternate
Base Rate” or “ABR” shall mean, for any date of determination a rate
per annum equal to the greater of (i) the prime rate of interest announced
by the Administrative Agent from time to time, changing when and as said prime
rate changes (such rate not 

 

58

 

necessarily being the lowest or best rate charged by the Administrative
Agent) or (ii) the sum of (a) 0.50% and (b) the Federal Funds
Rate for such date.

 

“Applicable
Margin” shall have the meaning specified in the Fee Letter.

 

“Approved
Foreign Country” shall mean Canada or the United Kingdom.

 

“Availability”
shall mean the excess (if any) of (a) the lesser of (i) the Facility
Limit and (ii) the Net Receivables Balance, over (b) the sum of (i) the
Net Investment plus (ii) the Required Reserves.

 

“Bankruptcy
Code” shall have the meaning assigned to that term in Section 3.01(v) of
the Receivables Transfer Agreement.

 

“Beneficiaries”
shall mean the Purchasers and the Administrative Agent, collectively.

 

“Benefit
Plan” shall mean any employee benefit plan as defined in Section 3(3) of
ERISA in respect of which the Transferor, any Seller or any ERISA Affiliate of
the Transferor, or any Seller is, or at any time during the immediately
preceding six (6) years was, an “employer” as defined in Section 3(5) of
ERISA.

 

“Business
Day” shall mean any day excluding Saturday, Sunday and any day on which
commercial banks in The City of New York are authorized or required by law to
close, and, when used with respect to the determination of the LMIR or any
notice with respect thereto, any such day which is also a day for trading by
and between banks in the London interbank market in United States dollar
deposits.

 

“Calculation
Period” shall mean each Fiscal Month.

 

“Capitalized
Lease” of a Person shall mean any lease of property by such Person as
lessee which would be capitalized on a balance sheet of such Person prepared in
accordance with GAAP consistently applied.

 

“Carrying
Cost Reserve Ratio “ shall mean, for any Calculation Period, the product
(expressed as a percentage) of (i) 1.5 times (ii) the
Alternate Base Rate as of the immediately preceding Cut-Off Date times (iii) a fraction the numerator of which is the
highest Days Sales Outstanding for the most recent 12 Calculation Periods and
the denominator of which is 360.

 

“Change
of Control” shall mean the occurrence of a “Change in Control” (as defined
in the Credit Agreement as in effect on the Closing Date or as such definition
may thereafter be amended with the consent of the Administrative Agent
hereunder).

 

“Charged-Off
Receivables” shall mean, with respect to any Calculation Period, all
Receivables (or portions thereof) which, in accordance with the Credit and
Collection Policy, have or should have been written off during such Calculation
Period as uncollectible, including, without limitation, the Receivables of any
Obligor which becomes the subject of any voluntary or involuntary bankruptcy
proceeding.

 

59

 

“Closing
Date” shall mean December 29, 2009.

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended, and the rules and
regulations promulgated thereunder.

 

“Collection
Agent” shall mean, at any time, the Person then authorized pursuant to Section 6.01
of the Receivables Transfer Agreement to act as Collection Agent.  The initial Collection Agent shall be TriMas
Corp.

 

“Collection
Agent Default” shall have the meaning specified in Section 6.07 of the
Receivables Transfer Agreement.

 

“Collection
Notice” shall mean a written notice by the Administrative Agent to a
Lock-Box Bank pursuant to a Lock-Box Agreement to cease honoring funds transfer
and withdrawal instructions from the Transferor.  The Administrative Agent may deliver a
Collection Notice only if deemed necessary or advisable in its reasonable judgment.

 

“Collections”
shall mean, with respect to any Receivable, all cash collections and other cash
proceeds of such Receivable, including, without limitation, all Finance
Charges, if any, and cash proceeds of Related Security with respect to such
Receivable and any Deemed Collections.

 

“Commission”
shall mean the Securities and Exchange Commission.

 

“Commitment”
shall mean, with respect to any Purchaser, the amount specified as such on
Schedule B to the Receivables Transfer Agreement for such Purchaser, as the
same may be reduced or increased from time to time as provided in Section 2.07
of the Receivables Transfer Agreement.

 

“Commitment
Expiry Date” shall mean the earliest to occur of (i) the date on which
all amounts due and owing to the Purchasers under the Transaction Documents
have been paid in full and the Aggregate Commitment has been reduced to zero
pursuant to the Receivables Transfer Agreement, (ii) the Termination Date,
and (iii) December 29, 2012.

 

“Concentration
Floor Percentage” shall mean (a) 12% at any time while the Stress Factor
is 1.50, and 20% at all other times.

 

“Concentration
Limit” shall mean, on any day:

 

(a)           in relation to all Eligible Foreign
Receivables, 15% of total Eligible Receivables; and

 

(b)           in relation to the aggregate
Outstanding Balance of Receivables owed by any single Obligor and its
Affiliates (if any), the applicable concentration limit for Obligors who have
short term unsecured debt ratings currently assigned to them by S&P and
Moody’s (or in the absence thereof, the equivalent long term unsecured senior
debt ratings), the applicable Concentration Limit shall be determined according
to the following table:

 

60

 

	
  S&P Short-Term

  Rating

  	
   

  	
  Moody’s Short-

  Term Rating

  	
   

  	
  S&P Long-Term

  Rating

  	
   

  	
  Moody’s Long-

  Term Rating

  	
   

  	
  Allowable % of

  Eligible

  Receivables

  
	
  A-1+

  	
   

  	
  P-1

  	
   

  	
  AA- or better

  	
   

  	
  A2 or better

  	
   

  	
  12%

  
	
  A-1

  	
   

  	
  P-1

  	
   

  	
  A

  	
   

  	
  A-2 or better

  	
   

  	
  10%

  
	
  A-2

  	
   

  	
  P-2

  	
   

  	
  BBB+

  	
   

  	
  Baa1

  	
   

  	
  8%

  
	
  A-3

  	
   

  	
  P-3

  	
   

  	
  BBB-

  	
   

  	
  Baa3

  	
   

  	
  6%

  
	
  Below A-3 or Not Rated by either S&P or Moody’s

  	
   

  	
  Below P-3 or Not Rated by either S&P or Moody’s

  	
   

  	
  Below BBB- or Not Rated by either S&P or Moody’s

  	
   

  	
  Below Baa3 or Not Rated by either S&P or Moody’s

  	
   

  	
  4%

  

 

; provided,
however,  that (i) if
any obligor has a split rating, the applicable rating will be the lower of the
two, and (ii) if any obligor is not rated by either S&P or Moody’s,
the applicable Obligor Concentration Limit shall be the one set forth in the
last line of the table above.

 

“Contract”
shall mean a written agreement or invoice, pursuant to or under which an
Obligor shall be obligated to pay for merchandise purchased or services
rendered and including all items and provisions incorporated or implied by
applicable law, including, without limitation, the Relevant UCC.

 

“Credit
Agreement” shall mean that certain Amended and Restated Credit Agreement,
dated as of December 16, 2009, by and among TriMas Corp., TriMas LLC,
JPMorgan Chase Bank, N.A., as administrative agent, J.P. Morgan Securities
Inc., as arranger and the various lending institutions party thereto, as
amended, supplemented or otherwise modified or replaced or refinanced and in
effect from time to time.

 

“Credit
and Collection Policy” shall mean the Sellers’ credit and collection policy
or policies relating to Contracts and Receivables existing on the Closing Date
and referred to in Exhibit A attached to the Receivables Transfer
Agreement, as amended, supplemented or otherwise Modified and in effect from
time to time in compliance with Section 5.02(c) of the Receivables
Transfer Agreement.

 

“Cut-Off
Date” shall mean the last day of each Calculation Period.

 

“Days
Sales Outstanding” and “DSO” shall mean, on any Cut-Off Date, the
number of calendar days equal to the product of (a) 91 and (b) the
amount obtained by dividing (i) the aggregate Outstanding Balance of all
Receivables as of such Cut-Off Date by (ii) the aggregate balance of
Receivables which arose during the three (3) consecutive Calculation
Periods immediately preceding such Cut-Off Date, which calculation shall remain
in effect until the next succeeding Cut-Off Date for all purposes of the
Receivables Transfer Agreement.

 

“Deemed
Collections” shall mean any Collections on any Receivable deemed to have
been received pursuant to Section 2.10(a) or (b) of the
Receivables Transfer Agreement.

 

“Default
Horizon Ratio” means, as of any Cut-Off Date, the ratio (expressed as a
decimal) computed by dividing (i) the aggregate sales generated by the
Sellers during the last 

 

61

 

three months (or such other period as the Administrative Agent may
determine based on a Review) ending on such Cut-Off Date, by (ii) the Net
Receivables Balance as of such Cut-off Date.

 

“Default
Ratio” means, as of any Cut-Off Date, the ratio (expressed as a percentage)
computed by dividing (a) the total amount of Receivables, which became
Defaulted Receivables during the month that includes such Cut-Off Date, by (b) the
aggregate sales generated by the Originators during the month occurring four
months prior to the month ending on such Cut-Off Date.

 

“Defaulted
Receivable” shall mean a Receivable (which on the date of its origination
was an Eligible Receivable):  (i) as
to which any payment, or part unpaid for more than 90 days from the original
due date for such Receivable; (ii) as to which an Event of Bankruptcy has
occurred and is continuing with respect to the Obligor thereof; (iii) which
has been identified by the Transferor, the Seller or the Collection Agent as
uncollectible; or (iv) which, in accordance with the Credit and Collection
Policy, should be written off as uncollectible.

 

“Delinquency
Ratio” means, at any time, a percentage equal to (a) the aggregate
outstanding principal balance of all Receivables that were Delinquent
Receivables at such time divided by (b) the
Outstanding Balance of all Receivables at such time.

 

“Delinquent
Receivable” shall mean a Receivable (which on the date of its origination
was an Eligible Receivable) as to which any payment, or part thereof, remains
unpaid for more than 60 days past its original due date but does not constitute
a Defaulted Receivable.

 

“Designated
Obligor” shall mean, at any time, each Obligor; provided,
however, that any Obligor shall cease to be a Designated Obligor
upon notice to the Transferor from the Administrative Agent, delivered at any
time.

 

“Diluted
Receivable” shall mean, any Receivable (which on the date of its
origination was an Eligible Receivable) which is the subject of a reduction or
cancellation as a result of any Dilution.

 

“Dilution”
means the amount of any reduction or cancellation of the Outstanding Balance of
a Receivable, including, without limitation, adjustments to the Outstanding
Balance of a Receivable, due to (i) any defective, rejected or returned
merchandise or services, (ii) any cash discount or any other credits,
discounts, disputes, warranty claims, repossessed or returned goods, charge
backs, allowances, other dilutive factors and any other billing or other
adjustment (whether effected through the granting of credits against the
applicable Receivables or by the issuance of a check or other payment in
respect of (and as payment for) such reduction by any Seller or any Affiliate
thereof, or as a result of any governmental or regulatory action, (iii) any
setoff in respect of any claim by the Obligor thereof (whether such claim
arises out of the same or a related or an unrelated transaction), (iii) any
rebate or refund, (iv) any misstatement of the amount thereof, or (v) any
misrepresentation, but excluding adjustments, reductions, or cancellations in
respect of the Obligor’s payment of the Receivable or  bankruptcy or insolvency, but excluding any
reduction or cancellation resulting from payment by an Obligor or a Receivable
becoming a Delinquent Receivable or a Defaulted Receivable.

 

62

 

“Dilution
Horizon Ratio” means, as of any Cut-off Date, a ratio (expressed as a
decimal), computed by dividing (a) the aggregate sales generated by the
Sellers during the three consecutive Calculation Periods (or such other period
as the Administrative Agent may determine based on a Review) ending on such
Cut-Off Date, by (b) the Net Receivables Balance as of such Cut-Off Date.

 

“Dilution
Ratio” means, as of any Cut-Off Date, subject to the Special Adjustment
after the Inclusion Date (if any), a ratio (expressed as a percentage),
computed by dividing (a) the total amount of decreases in outstanding
principal balances due to Dilution during the Calculation Period ending on such
Cut-Off Date, by (b) the aggregate sales generated by the Sellers during
the Calculation Period ending three months prior to the Calculation Period
ending on such Cut-Off Date.

 

“Dilution
Reserve Ratio” means, for any month, the product (expressed as a
percentage) of:  (a) the sum of (i) the
Stress Factor times the Adjusted Dilution Ratio
as of the immediately preceding Cut-Off Date, plus
(ii) the Dilution Volatility Component as of the immediately preceding
Cut-Off Date, times (b) the Dilution
Horizon Ratio as of the immediately preceding Cut-Off Date.

 

“Dilution
Volatility Component” means the product (expressed as a percentage) of (i) the
difference between (a) the highest three (3)-month rolling average
Dilution Ratio over the past 12 months and (b) the Adjusted Dilution
Ratio, and (ii) a fraction, the numerator of which is equal to the amount
calculated in (i)(a) of this definition and the denominator of which is
equal to the amount calculated in (i)(b) of this definition.

 

“Discount”
shall mean, with respect to any Tranche Period:

 

(TR x TNI x AD)

YD

 

	
  Where:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TR  

  	
  =

  	
  the Tranche Rate applicable to such Tranche Period;

  
	
   

  	
   

  	
   

  
	
  TNI  

  	
  =

  	
  the portion of the Net Investment allocated to such Tranche Period;

  
	
   

  	
   

  	
   

  
	
  AD  

  	
  =

  	
  the actual number of days during such Tranche Period; and

  
	
   

  	
   

  	
   

  
	
  YD  

  	
  =

  	
  either (i) if the Tranche Rate is based on the LMIR, 360 or
  (ii) if the Tranche Rate is based on the Alternate Base Rate, 365 or
  366, as applicable,

  

 

provided, however, that no provision of the
Receivables Transfer Agreement shall require the payment or permit the
collection of Discount in excess of the maximum amount permitted by applicable
law; and provided further, that
Discount shall not be considered paid by any distribution if, at any time, such
distribution is rescinded or must be returned for any reason.

 

“Discount
Percentage” shall mean, on any date, the percentage obtained from the
following formula:

 

63

 

100% - (A + B + C + D)

 

all
determined by the Transferor as of the related Transfer Date,

 

	
   Where

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A

  	
  =

  	
  Adjusted Loss Reserve Percentage, which as of such Transfer Date will
  equal the ratio obtained by dividing (a) Charged-Off Receivables (net of
  recoveries in respect of Charged-Off Receivables) during the six-Fiscal Month
  period immediately preceding the Cut-Off Date most recently preceding such
  Transfer Payment Date by (b) the aggregate amount of Collections during
  the six-Fiscal Month period immediately preceding the Cut-Off Date most
  recent to such Transfer Date.

  
	
   

  	
   

  	
   

  
	
  B

  	
  =

  	
  Adjusted Carrying Cost Reserve Percentage, which as of such Transfer
  Date will equal the amount obtained by dividing (a) the product of
  (i) the Stress Factor. (ii) the average of the DSO for the three
  Cut-Off Dates most recent to such Transfer Date and (iii) the Alternate
  Base Rate as of the Cut-Off Date most recent to such Transfer Date by
  (b) 365.

  
	
   

  	
   

  	
   

  
	
  C

  	
  =

  	
  The product of (i) the Servicing Fee Percentage and
  (ii) 1/3.

  
	
   

  	
   

  	
   

  
	
  D

  	
  =

  	
  Processing Expense Reserve Percentage; which will equal 1/10 of 1%
  and reflects the cost of the Transferor’s overhead, including costs of processing
  the purchase of Receivables and other normal operation costs and a reasonable
  profit margin.

  

 

None
of the elements of the above-referenced formula, in respect of any purchase of
Receivables, will be adjusted following the related Transfer Date.

 

With
respect to each calculation set forth above with respect to a Cut-Off Date,
such calculation as calculated on such Cut-Off Date and included in the
applicable Monthly Report shall remain in effect from and including the related
Cut-Off Date to but excluding the following Cut-Off Date.

 

For
the initial Calculation Period, the Discount Percentage will be 98.6%.

 

Notwithstanding
the foregoing, the Discount Percentage shall never be less than 97.5%.

 

“Eligible
Foreign Receivable” shall mean an Eligible Receivable as to which the
Obligor is a resident of an Approved Foreign Country.

 

“Eligible
Obligor” shall mean any Obligor, of which not more than 35% of such Obligor’s
aggregate Receivables are more than 120 days past their original due date.

 

“Eligible
Receivable” shall mean, at any time, any Receivable:

 

64

 

(1)           which has been originated by any Seller and subsequently
sold to the Transferor pursuant to (and in accordance with) the Receivables
Purchase Agreement, and to which the Transferor has good title thereto, free
and clear of all Adverse Claims other than those imposed in connection with, or
permitted by, the Transaction Documents and Liens for taxes, assessments or
other governmental charges payable by the Transferor that are not yet due and
payable;

 

(2)           which (together with the Collections and Related Security
related thereto) has been the subject of either (A) a valid transfer and
assignment from the Transferor to the Administrative Agent, on behalf of the
Purchasers, of all of the Transferor’s right, title and interest therein or (B) the
grant of a first priority perfected security interest therein (and in the
Collections and Related Security related thereto) in favor of the
Administrative Agent, on behalf of the Purchasers, in each case effective until
termination of the Receivables Transfer Agreement.

 

(3)           the Obligor of which is (A) a resident of the United
States, a U.S. territory or an Approved Foreign Country, (B) a Designated
Obligor at the time of the initial creation of an interest therein under the
Receivables Transfer Agreement, (C) not an Official Body or an Affiliate
of any of the parties to the Receivables Transfer Agreement, (D) not the
subject of an Event of Bankruptcy, and (E) an Eligible Obligor;

 

(4)           which is not a Delinquent Receivable or a Defaulted
Receivable;

 

(5)           which (A) arises pursuant to a Contract with respect
to which the Seller has performed all obligations required to be performed by
it thereunder, including, without limitation, shipment of the merchandise
and/or the performance of the services purchased thereunder; and (B) according
to the Contract related thereto, has been billed and is required to be paid in
full within 60 days (or, in the case of the Specified Obligor, if applicable,
75 days) of the original billing date therefor in accordance with the terms of
the applicable Contract;

 

(6)           as to which the Obligor is not required to pay cash on
delivery or cash in advance;

 

(7)           which is (A) an “account” within the meaning of Section 9-102(a)(2) of
the Relevant UCC, or (B) a “payment intangible” within the meaning of Section 9-102(a)(61)
of such Relevant UCC;

 

(8)           which is denominated and payable only in United States
dollars in the United States;

 

(9)           which arises under a Contract that, together with the
Receivable related thereto, is in full force and effect and constitutes the
legal, valid and binding obligation of the related Obligor, enforceable against
such Obligor in accordance with its terms and is not subject to any litigation,
dispute, offset, counterclaim or other defense other than unexpired volume or
pricing discounts or 

 

65

 

rebates
to which the obligor thereon may be entitled, provided that only such
portion of such receivable subject to any such dispute, offset, counterclaim or
defense shall be deemed ineligible under this criterion;

 

(10)         which, together with the Contract related thereto, does not
contravene in any material respect any laws, rules or regulations applicable
thereto (including, without limitation, laws, rules and regulations
relating to truth in lending, fair credit billing, fair credit reporting, equal
credit opportunity, fair debt collection practices and privacy) and with
respect to which no part of the Contract related thereto is in violation of any
such law, rule or regulation in any material respect;

 

(11)         which (A) satisfies in all material respects all
applicable requirements of the Credit and Collection Policy, (B) is
assignable without the consent of, or notice to, the Obligor thereunder, and (C) complies
at the time of the initial creation of an interest therein under the
Receivables Transfer Agreement with such other reasonable criteria and
requirements as the Administrative Agent and the Required Purchasers have then
specified to the Transferor following five (5) days’ notice;

 

(12)         which was originated in the ordinary course of the
applicable Seller’s business or acquired from an originator approved by the
Administrative Agent and the Required Purchasers which approval shall not be
unreasonably withheld;

 

(13)         the Obligor of which has been directed to make all payments
to a specified account of the Transferor with respect to which there shall be a
Lock-Box Agreement in effect;

 

(14)         the assignment of which under the Receivables Purchase
Agreement by the Seller to the Transferor and the assignment of which under the
Receivables Transfer Agreement by the Transferor to the Purchasers does not
violate, conflict with or contravene any applicable laws, rules, regulations,
orders or writs or any contractual or other restriction, limitation or
encumbrance and does not require the consent of any Person;

 

(15)         which has not been compromised, adjusted or modified
(including by the extension of time for payment or the granting of any
discounts, allowances or credits), provided
that only such portion of such receivable that has been so compromised,
adjusted or modified shall be deemed ineligible pursuant to this criterion; and

 

(16)         which does not arise under a Contract that has been
rewritten.

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended,
supplemented or otherwise modified and in effect from time to time, and the rules and
regulations promulgated thereunder.

 

66

 

“ERISA Affiliate”
shall mean, with respect to any Person, (i) any corporation which is a
member of the same controlled group of corporations (within the meaning of Section 414(b) of
the Code as such Person; (ii) a trade or business (whether or not incorporated)
under common control (within the meaning of Section 414(c) of the
Code) with such Person; or (iii) a member of the same affiliated service
group (within the meaning of Section 414(m) of the Code) as such
Person, any corporation described in clause (i) above or any trade or
business described in clause (ii) above.

 

“Event of Bankruptcy”
shall mean, with respect to any Person, (i) that such Person (a) shall
generally not pay its debts as such debts become due or (b) shall admit in
writing its inability to pay its debts generally or (c) shall make a
general assignment for the benefit of creditors; (ii) any proceeding shall
be instituted by or against such Person seeking to adjudicate it as bankrupt or
insolvent, or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief or composition of it or its debts under any law
relating to bankruptcy, insolvency or reorganization or relief of debtors, or
seeking the entry of an order for relief or the appointment of a receiver, trustee
or other similar official for it or any substantial part of its property, and,
if instituted against such Person, shall remain undischarged for a period of 60
days; or (iii) if such Person is not an individual, such Person or any
Subsidiary shall take any corporate or similar action to authorize any of the
actions set forth in the preceding clauses (i) or (ii).

 

“Excluded Receivable”
shall mean, at any time prior to satisfaction of the Inclusion Conditions with
respect to a Special Obligor, all indebtedness owed to any Seller by such
Special Obligor under a Contract and rights of payment and other payment
obligations (whether or not earned by performance), whether constituting an
account, chattel paper, instrument, investment property or general intangible,
arising in connection with property or goods that have been or are to be sold,
leased or otherwise disposed of, or services rendered or to be rendered, by
such Seller, in each case, in its ordinary course of business and the right to
payment of any Finance Charges and other obligations of such Special Obligor
with respect thereto,

 

“Facility Limit”
shall mean, at any time, an amount equal to the Aggregate Commitment at any
time in effect; provided, further, that from
and after the Termination Date, the Facility Limit shall at all times equal the
Net Investment.

 

“Facility Limit Increment
Amount” shall mean $50,000,000.

 

“Federal Funds Rate”
shall mean, for any day, an interest rate per annum equal to (a) the
weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers on such
day; as published for such day (or, if such day is not a Business Day, for the
immediately preceding Business Day) by the Federal Reserve Bank of New York, or
(b) if such rate is not so published for any day which is a Business Day,
the average of the quotations at approximately 11:00 A.M. (New York time)
on such day on such transactions received by the Administrative Agent from
three (3) federal funds brokers of recognized standing selected by the
Administrative Agent in its sole discretion.

 

“Fee Letter” shall
mean the letter agreement, dated the Closing Date, between the Transferor and
the Administrative Agent, for the benefit and on behalf of the Purchasers, with

 

67

 

respect
to the fees to be paid by the Transferor under the Transaction Documents, as
amended, supplemented or otherwise modified and in effect from time to time.

 

“Fees” shall mean the
fees payable pursuant to the Fee Letter.

 

“Finance Charges”
shall mean, with respect to a Contract, any finance, interest, late or similar
charges owing by an Obligor pursuant to such Contract.

 

“Fiscal Month” shall
mean a fiscal month of TriMas Corp.

 

“Fiscal Year” shall
mean a fiscal year of TriMas Corp.

 

“Fully-Diluted Receivable”
shall have the meaning specified in Section 2.11(b) of the
Receivables Transfer Agreement.

 

“Funded Amount” shall
mean, with respect to any Purchaser for any day, the portion of the Net
Investment funded by such Purchaser for such day.

 

“GAAP” shall mean
generally accepted accounting principles in the United States of America,
subject to Section 1.02 of the Receivables Transfer Agreement.

 

“Guarantor” shall
mean TriMas LLC in its capacity as Guarantor under the Limited Guaranty set
forth in Article IX of the Receivables Transfer Agreement.

 

“Guaranty” shall
mean, with respect to any Person, any agreement by which such person assumes,
guarantees, endorses, contingently agrees to purchase or provide funds for the
payment of or otherwise becomes liable upon, the obligation of any other
Person, or agrees to maintain the net worth or working capital or other
financial condition of any other Person or otherwise assures any other creditor
of such other Person against loss, including, without limitation, any comfort
letter, operating agreement or take-or-pay contract and shall include, without
limitation, the contingent liability of such Person in connection with any
application for a letter of credit; provided, however,
that the term “Guaranty” shall not mean or include the endorsements by such
Person of instruments for deposit or collection in the ordinary course of
business.

 

“Inclusion Conditions”
shall mean, as to Excluded Receivables owing from any Special Obligor, the
following:

 

(a)                                TriMas Corp. shall have
given the Transferor and the Administrative Agent not less than 45 days’ prior
written notice of its desire to include as Receivables amounts owing from such
Special Obligor as of the first day of a specified future Calculation Period;

 

(b)                               The Collection Agent shall
have delivered to the Administrative Agent restated Monthly Reports for not
less than the 12 Calculation Periods preceding the proposed date of inclusion,
recomputing the ratios and amounts set forth therein as if such Excluded
Receivables had been included in Receivables for the periods covered thereby,
and none of such restated Monthly Reports indicates that a  Termination Event under Section 7.01(k),
(l) or (m) would have occurred had they been so included;

 

68

 

(c)                                The Administrative Agent
shall have received updated UCC searches against each of the relevant Sellers
in its jurisdiction of organization revealing no financing statements of record
covering such Excluded Receivables, and each of the financing statements filed
against any Seller or the Transferor shall have been amended to include such
Excluded Receivables in the collateral covered thereby;

 

(d)                               The Collection Agent and the
Sellers shall have instructed the applicable Special Obligor to make all
payments in respect of such Excluded Receivables directly to a Lock-Box Bank
Account maintained pursuant to a Lock-Box Agreement, duly executed by all
parties thereto; and

 

(e)                                If reasonably deemed
necessary by the Administrative Agent, a Review shall have been conducted
within the  3 months prior to the
proposed date of inclusion.

 

“Inclusion Date”
means the date, if any, when obligations of any Special Obligor that were
formerly Excluded Receivables are included in “Receivables” following
satisfaction of the Inclusion Conditions.

 

“Incremental Transfer”
shall mean a Transfer which is made pursuant to Section 2.02(a) of
the Receivables Transfer Agreement.

 

“Indebtedness” shall
mean, with respect to any Person, such Person’s (i) obligations for
borrowed money, (ii) obligations representing the deferred purchase price
of property other than accounts payable arising in the ordinary course of such
Person’s business on terms customary in the trade, (iii) obligations,
whether or not assumed, secured by liens or payable out of the proceeds or
production from property now or hereafter owned or acquired by such Person, (iv) obligations
which are evidenced by notes, acceptances, or other instruments, (v) Capitalized
Lease obligations and (vi) Guaranty obligations.

 

“Indemnified Amounts”
shall have the meaning specified in Section 2.20 of the Receivables
Transfer Agreement.

 

“Indemnified Parties”
shall have the meaning specified in Section 2.20 of the Receivables
Transfer Agreement.

 

“Indemnified Taxes”
shall mean any present or future income, stamp or other taxes, levies, imposts,
duties, charges, fees, deductions or withholdings, now or hereafter imposed,
levied, collected, withheld or assessed by any Official Body, excluding (A) all
franchise taxes, all taxes, levies, imposts, duties, charges, fees, deductions
and withholdings imposed on or measured by the net income, capital or net worth
or all taxes, levies, imposts, duties, charges, fees, deductions and
withholdings on doing business, in each case, imposed:

 

(i)                                     by the United States or any
political subdivision or taxing authority thereof or therein;

 

(ii)                                  by any jurisdiction under
the laws of which the Administrative Agent, any Purchaser or any Indemnified
Party or lending office is organized or in which its lending office is located,
managed or controlled or in which its principal 

 

69

 

office is located or any
political subdivision or taxing authority thereof or therein; or

 

(iii)                               by reason of any connection
between the jurisdiction imposing such tax and the Administrative Agent, any
Purchaser, such Indemnified Party or such lending office other than a
connection arising-solely from the Receivables Transfer Agreement or any other
Transaction Document or any transaction hereunder or thereunder,

 

(B) all
penalties, interests, additions to taxes and expenses resulting from gross
negligence or willful misconduct on the part of the Administrative Agent, any
Purchaser or any Indemnified Party, as the case may be, and (C) all
taxes, levies, imposts, duties, charges, fees, deductions and withholdings
imposed by reason of the failure of any Indemnified Party to comply with its
obligations, if any, under Section 2.22(b) of the Receivables
Transfer Agreement (including, without limitation, its inability to comply with
Section 2.22(b)(i) of the Receivables Transfer Agreement.

 

“Indenture” shall
mean that certain Indenture governing the 9-3/4% senior secured notes due 2017
among TriMas Corp. the various guarantors party thereto and The Bank of New
York Mellon Trust Company, as Trustee.

 

“Initial Incremental
Transfer Date” shall mean the date of the initial Incremental Transfer.

 

“Interim Report”
shall mean a report, in substantially the form attached to the Receivables
Transfer Agreement as Exhibit D or in such other form as is mutually
agreed to by the Transferor and the Administrative Agent, delivered by the
Collection Agent to the Administrative Agent on each Interim Reporting Date
occurring while any Net Investment is outstanding or in any week in which a
Transfer is to occur.

 

“Interim Reporting Date”
shall mean (a) the third Business Day of each calendar week, and (b) at
any time requested by the Administrative Agent, each Business Day.

 

“Interim Settlement Date”
shall mean (a) the Business Day immediately succeeding each Interim
Reporting Date on which the applicable Interim Report reveals that the
Percentage Interest exceeds the Maximum Percentage Interest, or (b) any
Interim Reporting Date on which the applicable Interim Report reveals that the
Net Investment exceeds the Facility Limit.

 

“Law” shall mean any
law (including common law), constitution, statute, treaty, regulation, rule,
ordinance, order, injunction, writ, decree or award of any Official Body.

 

“Leverage Ratio”
shall have the meaning specified in the Credit Agreement as in effect on the
Closing Date or as such definition (or any of its components) may thereafter be
amended with the consent of the Administrative Agent hereunder.  For purposes of computing the Stress Factor,
the Leverage Ratio for any Calculation Period (or portion thereof) shall be the
Leverage Ratio in effect as of the last day of the most recently completed fiscal
quarter for which financial statements are required to have been delivered by
TriMas Corp. to the Administrative Agent under the Receivables Transfer
Agreement (it being understood that any change in the Leverage 

 

70

 

Ratio
shall become effective immediately on the date on which such financial
statements are required to have been delivered).

 

“LIBOR Market Index Rate”
shall mean, for any day, the three-month Eurodollar Rate for U.S. dollar
deposits as reported on the Reuters Screen LIBOR01 Page.

 

“Limited Guaranty”
shall mean the Guaranty of the Guarantor under Article IX of the
Receivables Transfer Agreement.

 

“LMIR” shall mean, on
any date of determination, a rate per annum equal to the LIBOR Market Index
Rate, plus the Applicable Margin.

 

“LMIR Tranche” shall
mean a Tranche as to which Discount is calculated at the LMIR plus the
Applicable Margin.

 

“LMIR Tranche Period”
shall mean, with respect to an LMIR Tranche, a calendar month or any portion
thereof.

 

“Lock-Box Account”
shall mean an account maintained by the Transferor or an account holder
identified in any Lock-Box Agreement at a Lock-Box Bank for the purpose of
receiving Collections from Receivables.

 

“Lock-Box Agreement”
shall mean an agreement between the Collection Agent, the Transferor, any
applicable account holder identified therein, the Administrative Agent and a
Lock-Box Bank in a form reasonably acceptable to the Administrative Agent.

 

“Lock-Box Bank” shall
mean each of the banks set forth in Exhibit B to the Receivables Transfer
Agreement, and such banks as may be added thereto or deleted therefrom pursuant
to Section 2.09 of the Receivables Transfer Agreement.

 

“Loss Reserve Ratio”
shall mean, on any day, the product of (a) the Stress Factor, and (b) the
highest three-month average Default Ratio that occurred during the twelve (12)
most recent Calculation Periods, and (c) the Default Horizon Ratio.

 

“Material Adverse Effect”
shall mean any event or condition which would have a material adverse effect on
(i) the collectability of the Receivables, (ii) the condition
(financial or otherwise), businesses or properties of the Transferor, the
Guarantor or any Seller, (iii) the ability of the Transferor, the
Guarantor or any Seller to perform its respective obligations under the
Transaction Documents, to which it is a party or (iv) the interests of the
Administrative Agent or the Purchasers under the Transaction Documents; provided, however, that for purposes
of clauses (ii) and (iii) an event or condition will not be deemed to
have a Material Adverse Effect unless such event or condition, in the
reasonable discretion of the Administrative Agent and the Required Purchasers,
is reasonably likely to have a material adverse effect on the condition (financial
or otherwise) of TriMas Corp. on a consolidated basis or on the Transferor.

 

“Maximum Percentage
Interest” shall mean 100%.

 

71

 

“Monthly Payment Date”
shall mean the fifth day of each calendar month after the date of the
Receivables Transfer Agreement (commencing January 5, 2010) or, if such
day is not a Business Day, the next succeeding Business Day.

 

“Monthly Report”
shall have the meaning specified in Section 2.12(b) of the
Receivables Transfer Agreement.

 

“Monthly Reporting Date”
shall mean the 20th of each calendar month after the date of the Receivables
Transfer Agreement or, if such 20th day is not a
Business Day, the next succeeding Business Day.

 

“Moody’s” shall mean
Moody’s Investors Service, Inc., and its successors and assigns.

 

“Multiemployer Plan”
shall mean a “multiemployer plan” as defined in Section 4001(a)(3) of
ERISA which is or was at any time during the current year or the immediately
preceding five years contributed to by the Transferor, the Seller or any ERISA
Affiliate of the Transferor or the Seller on behalf of its employees.

 

“Net Investment”
shall mean the sum of the cash amounts paid to the Transferor by the Purchasers
for all Incremental Transfers minus the aggregate amount of Collections
received and applied by the Administrative Agent to reduce such Net Investment
pursuant to Section 2.05, 2.06 or 2.10 of the Receivables Transfer
Agreement; provided that the Net
Investment shall be restored and reinstated in the amount of any Collections so
received and applied if, at any time, the distribution of such Collections is
rescinded or must otherwise be returned for any reason.

 

“Net Receivables Balance”
shall mean, at any time, the aggregate Outstanding Balance of the Eligible Receivables
at such time, as reduced by (without duplication) the aggregate amount for all
Designated Obligors by which the Outstanding Balance of all Eligible
Receivables of each Designated Obligor exceeds the product of the Concentration
Limit for such Designated Obligor multiplied by the Outstanding Balance of all
Eligible Receivables of such Designated Obligor.

 

“Obligor” shall mean
a Person obligated to make payments for the provision of goods and services
pursuant to a Contract.

 

“OFAC” shall mean The
U.S. Department of the Treasury’s Office of Foreign Assets Control.

 

“Official Body” shall
mean any government or political subdivision or any agency, authority, bureau,
central bank, commission, department or instrumentality of any such government
or political subdivision, or any court, tribunal, grand jury or arbitrator, in
each case whether foreign or domestic.

 

“Outstanding Balance”
shall mean, with respect to any Receivable at any time, the then outstanding
principal amount thereof, excluding any accrued and outstanding Finance Charges
related thereto.

 

“Parent Compliance
Certificate” shall mean each certificate delivered pursuant to Section 5.01(c) of
the Credit Agreement.

 

72

 

“Participant” shall
have the meaning given to such term in Section 10.06(c) of the
Receivables Transfer Agreement.

 

“Percentage Interest”
shall mean, an undivided percentage interest (computed as set forth below)
associated with a designated Funded Amount, selected pursuant to the terms and
conditions hereof in (i) each Receivable arising prior to the time of the
most recent computation or recomputation of such undivided interest, (ii) all
Related Security with respect to each such Receivable, and (iii) all
Collections with respect to, and other proceeds of, each such Receivable.  Each such undivided percentage interest shall
equal (a) prior to the Termination Date:

 

	
  FA + RR

  
	
  NRB

  

 

where:

 

FA                           = the Funded
Amount of such Transferred Interest

 

NRB                   = the Net Receivables
Balance

 

RR                            = the Required
Reserve

 

and (b) upon the occurrence of and after the
Termination Date, 100%.

 

The Percentage Interest
shall be calculated by the Collection Agent on the day of the initial
Incremental Transfer under the Receivables Transfer Agreement.  Thereafter, until the Termination Date, the
Collection Agent shall recompute the Percentage Interest at the time of each
Incremental Purchase pursuant to Section 2.02(a) of the Receivables
Transfer Agreement and as of the close of business on each Business Day and report
such recomputation to the Administrative Agent in the Settlement Statements and
as otherwise requested by any Purchaser. 
The Percentage Interest shall remain constant from the time as of which
any such computation or recomputations is made until the time as of which the
next such recomputations shall be made, notwithstanding any additional
Receivables arising, any Incremental Transfer made pursuant to such Section 2.02(a) or
any reinvestment Transfer made pursuant to Section 2.02(b) and 2.05
of the Receivables Transfer Agreement during any period between computations of
the Percentage Interest.  The Percentage
Interest shall remain constant at 100% at all times on and after the
Termination Date until such time as the Administrative Agent, on behalf of the
Purchasers, shall have received payment in full in cash of the Aggregate
Unpaids at which time the Percentage Interest shall equal zero.

 

“Permitted Originator
Encumbrances” shall mean (a) Liens for taxes, assessments or other
governmental charges not yet due and payable or that are being contested in
accordance with the terms and conditions of Section 4.02(q) of the
Purchase Agreement (but only to the extent that any Lien imposed to secure
payment of such taxes or assessments or other governmental charges is an
inchoate tax lien), (b) pledges or deposits securing obligations under
workmen’s compensation, unemployment insurance, social security or public
liability laws or similar legislation (excluding Liens under ERISA), (c) pledges
or deposits securing bids, tenders, contracts (other than contracts for the
payment of money) or leases to which any Seller is a party as lessee made in
the ordinary course of business, (d) deposits securing statutory
obligations of any Seller, (e) inchoate and unperfected workers’,
mechanics’ suppliers’ or similar Liens arising in the ordinary course of
business, (f) carriers’, warehousemen’s or other similar possessory Liens
arising in the ordinary course of business, (g) deposits securing, or in
lie of, surety, appeal 

 

73

 

or
customs bonds in proceedings to which any Seller is a party, (h) any
attachment or judgment Lien not constituting a Termination Event under Section 9.01(f) of
the Receivables Transfer Agreement and (i) Liens in favor of lenders under
the Credit Agreement and Liens in favor of holders of notes issued under the
Indenture.

 

“Person” shall mean
any corporation, limited liability company, natural person, firm, joint
venture, partnership, trust, unincorporated organization, enterprise,
government or any department or agency of any government.

 

“Potential Termination
Event” shall mean an event which but for the lapse of time or the giving of
notice, or both, would constitute a Termination Event.

 

“Proceeds” shall mean
“proceeds” as defined in Section 9-102(a)(64) of the Relevant UCC.

 

“Pro Rata Share”
shall mean, on any date of determination, with respect to any Purchaser, the
ratio (expressed as a percentage) of such Purchaser’s Commitment to the
Aggregate Commitment at such time.

 

“Purchase Price”, as
used in any Receivables Purchase Agreement, shall have, the meaning set forth
in Section 3.01 of the Receivables Purchase Agreement.

 

“Purchase Termination
Date” shall have the meaning specified in Section 8.01 of the
Receivables Purchase Agreement.

 

“Purchased Receivables
Percentage” means, with respect to any Seller (or Seller Division) as to
which TriMas Corp. has submitted a Seller Termination Request, the percentage
equivalent of a fraction, the numerator of which is an amount equal to the
aggregate Outstanding Balance of Receivables sold by such Seller (or Seller
Division) as of the applicable Seller Termination Request Date, and the
denominator of which is an amount equal to the aggregate Outstanding Balance of
all Receivables as of such date.

 

“Purchaser” shall
mean each of the banks and other financial institutions identified on Schedule
B to the Receivables Transfer Agreement, as the same may be amended,
supplemented or otherwise modified and in effect from time to time.

 

“Receivable” shall
mean the United States dollar-denominated indebtedness owed to the applicable
Seller by an Obligor under a Contract and rights of payment and other payment
obligations (whether or not earned by performance), whether constituting an
account, chattel paper, instrument, investment property or general intangible,
arising in connection with property or goods that have been or are to be sold,
leased or otherwise disposed of, or services rendered or to be rendered, by
such Seller, in each case, in its ordinary course of business and includes the
right to payment of any Finance Charges and other obligations of such Obligor
with respect thereto; provided, however, in no event shall any
Excluded Receivable constitute a “Receivable.” 
Notwithstanding the foregoing, once a Receivable has been deemed
collected pursuant to Section 2.10 of the Receivables Transfer Agreement,
it shall no longer constitute a Receivable for purposes of computing any ratio
under the Receivables Transfer Agreement.

 

74

 

“Receivables Purchase
Agreement” shall mean the Amended and Restated Receivables Purchase
Agreement.  dated as of December 29,
2009, by and among TriMas Corporation, the Sellers, as sellers, and the Transferor,
as purchaser, as such agreement may be amended, supplemented or otherwise
modified and in effect from time to time.

 

“Receivables Transfer
Agreement” shall mean the Receivables Transfer Agreement, dated as of December 29,
2009, by and between the Transferor, TriMas Corp., individually, as Collection
Agent and TriMas LLC, individually, as Guarantor, the Purchasers and the
Administrative Agent, as such agreement may be amended, supplemented or
otherwise modified and in effect from time to time.

 

“Recipient” shall
have the meaning specified in Section 2.15 of the Receivables Transfer
Agreement.

 

“Records” shall mean
all Contracts and other documents, books, records and other writings and
information (including, without limitation, computer programs, tapes, discs,
punch cards, data processing software and related property and rights)
maintained with respect to Receivables and the related Obligors.

 

“Reduction Notice”
shall mean an irrevocable notice of a reduction in the Net Investment pursuant
to Section 2.06(d) of the Receivables Transfer Agreement, executed by
the Transferor, substantially in the form of Exhibit G to the Receivables
Transfer Agreement.

 

“Related Security”
shall mean, with respect to any Receivable, all of the applicable Seller’s or
Transferor’s right, title and interest in, to and under:

 

(a)                                  the merchandise (including
returned or repossessed merchandise), if any, the sale of which by such Seller
gave rise to such Receivable;

 

(b)                                 all other security interests
or liens and property subject thereto from time to time, if any, purporting to
secure payment of such Receivable, whether pursuant to the Contract related to
such Receivable or otherwise, together with all financing statements naming the
applicable Obligor as debtor describing any collateral securing such
Receivable;

 

(c)                                  all guarantees, indemnities,
warranties, insurance (and proceeds thereof) or other agreements or
arrangements of any kind from time to time supporting or securing payment of
such Receivable whether pursuant to the Contract related to such Receivable or
otherwise;

 

(d)                                 all Records related to such
Receivable;

 

(e)                                  in the case of the
Administrative Agent for the benefit of the Purchasers, all rights and remedies
of the Transferor under the Receivables Purchase Agreement, together with all
financing statements naming any Seller as debtor or seller and the Transferor
as secured party or buyer filed in connection therewith; and

 

75

 

(f)                                    all Proceeds of any of the
foregoing.

 

“Relevant UCC” shall
mean, with respect to any state, the Uniform Commercial Code as from time to
time in effect in such state.

 

“Required Purchasers”
shall mean Purchasers having Pro Rata Shares in the aggregate equal to more
than 50% or, if the Commitments have been terminated, having more than 50% of
the Net Investment; provided that the Commitment of any Defaulting
Purchaser that has not paid all amounts due and owing by it in respect of
Purchases, it was obliged to make shall not be included in the Commitments for
purposes of this definition.

 

“Required Reserve”  means, on any day during a Calculation Period, the product
of (a) the greater of (i) the Required Reserve Factor Floor and (ii) the
sum of the Loss Reserve Ratio, the Carrying Cost Reserve Ratio, the Dilution
Reserve Ratio and the Servicing Fee Reserve Ratio, times
(b) the Net Receivables Balance as of the Cut-Off Date immediately
preceding such Calculation Period.

 

“Required Reserve Factor
Floor”
shall mean, for any Calculation Period, the greater of (a) 25%, and (b) the
sum (expressed as a percentage) of (i) the Concentration Floor Percentage,
plus (ii) the product of the
Adjusted Dilution Ratio and the Dilution Horizon Ratio, in each case, as of the
immediately preceding Cut-Off Date plus
(iii) Carrying Cost Reserve Ratio and Servicing Fee Reserve Ratio.

 

“Responsible Officer”
shall mean with respect to any Seller or the Transferor, any officer directly
or indirectly responsible for the execution of the transactions contemplated by
the Transaction Documents.

 

“Review” shall have
the meaning specified in Section 5.01(d) of the Receivables Transfer
Agreement.

 

“Sanctioned Country”
shall mean a country subject to a sanctions program identified on the list
maintained by OFAC and available at: http://www.treas.gov/offices/eotffc/ofac/sanctions/index.html,
or as otherwise published from time to time.

 

“Sanctioned Person”
shall mean  (i) a person named on
the list of Specially Designated Nationals or Blocked Persons maintained by
OFAC available at: http://www.treas.gov/offices/eotffc/ofac/sdn/index.html, or
as otherwise published from time to time or (ii) (A) an agency of the
government of a Sanctioned Country, (B) an organization controlled by a
Sanctioned Country, or (C) a person resident in a Sanctioned Country, to
the extent subject to a sanctions program administered by OFAC.

 

“Seller Addition Date”
shall have the meaning specified in Section 7.02 of the Receivables
Purchase Agreement.

 

“Seller Division”
shall mean any business unit or operating assets acquired by a Seller which is
made part of an existing division of a Seller or made a new division (but not a
subsidiary) of a Seller.

 

76

 

“Seller Termination
Request” shall have the meaning specified in Section 8.03(b) of
the Receivables Purchase Agreement.

 

“Seller Termination
Request Date” shall have the meaning specified in Section 8.03(b) of
the Receivables Purchase Agreement.

 

“Sellers” shall have
the meaning specified in the recitals to the Receivables Purchase Agreement.

 

“Servicing Fee” shall
mean the fees payable by the Transferor to the Collection Agent in an amount
equal to the Servicing Fee Percentage multiplied by the amount of the aggregate
Outstanding Balance of the Receivables or such other amount as may be
determined pursuant to Section 6.02(b) of the Receivables Transfer
Agreement.  Such fee shall accrue from
the date of the initial purchase of an interest by a Purchaser in the
Receivables to the later of the Termination Date or the date on which the
Percentage Interest is reduced to zero. 
On or prior to the Termination Date, and provided that no Potential
Termination Event shall have occurred and be continuing, such fee shall be
payable only from Collections pursuant to, and subject to the priority of
payments set forth in, Section 2.05 of the Receivables Transfer
Agreement.  After the Termination Date or
during the continuation of a Potential Termination Event, such fee shall be
payable only from Collections pursuant to, and subject to the priority of
payments set forth in, Section 2.06 of the Receivables Transfer Agreement.

 

“Servicing Fee Percentage”
shall mean 0.50% per annum or, at any time when TriMas Corp. or any of its
Affiliates is not the Collection Agent and a higher market rate is then
prevailing, such higher market-rate percentage as may be agreed to by the
Administrative Agent and the Collection Agent from time to time.

 

“Servicing Fee Reserve
Ratio” shall mean, at any time, an amount equal to the product of (i) the
Servicing Fee Percentage and (ii) a fraction having as the numerator, the
highest DSO for the most recent 12 Calculation Periods, and as the denominator,
360.

 

“Settlement Statement”
shall mean a Monthly Report or an Interim Report, as the case may be.

 

“Solvent” shall mean,
with respect to any Person, that the fair value of the assets of such Person
(both at fair valuation and at present fair saleable value) is, on the date of
determination, greater than the total amount of liabilities (including
contingent and unliquidated liabilities) of such Person as of such date and
that, as of such date, such Person is able to pay all liabilities of such
Person as such liabilities mature and such Person does not have unreasonably
small capital with which to carry on its business.  In computing the amount of contingent or
unliquidated liabilities at any time, such liabilities will be computed at the
amount which, in light of all the facts and circumstances existing at such
time, represents the amount that can reasonably be expected to become an actual
or matured liability.

 

“Special Adjustment”
shall have the meaning specified in the Fee Letter.

 

“Special
Obligor” shall have the meaning specified in the Fee Letter.

 

77

 

“Specified Bankruptcy
Opinion Provisions” shall mean the factual assumptions (including those
contained in the factual certificate referred to therein) and the actions to be
taken by the Sellers or the Transferor, in each case as specified in the legal
opinion of Cahill Gordon & Reindel LLP relating to certain bankruptcy
matters delivered on the Closing Date.

 

“Specified Level”
shall mean, as of the last day of any fiscal quarter ending during any period
set forth below, the ratio set forth opposite such period:

 

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
  October 1, 2009 to March 31, 2010

  	
   

  	
  4.50 to 1.00

  	
   

  
	
  April 1, 2010 to June 30, 2010

  	
   

  	
  4.75 to 1.00

  	
   

  
	
  July 1, 2010 to December 31, 2010

  	
   

  	
  4.50 to 1.00

  	
   

  
	
  January 1, 2011 to June 30, 2011

  	
   

  	
  4.25 to 1.00

  	
   

  
	
  July 1, 2011 to September 30, 2011

  	
   

  	
  4.00 to 1.00

  	
   

  
	
  October 1, 2011 to September 30, 2012

  	
   

  	
  3.75 to 100

  	
   

  
	
  thereafter

  	
   

  	
  3.50 to 1.00

  	
   

  

 

“Specified
Obligor” shall have the meaning specified in the Fee Letter.

 

“Standard & Poor’s”
or “S&P” shall mean Standard & Poor’s Ratings Services, a
division of The McGraw-Hill Companies, Inc., and its successors and
assigns.

 

“Stress Factor” shall
mean (a) for any Calculation Period for which the Leverage Ratio is less
than the Specified Level, 1.50, and (b) at the option of the
Administrative Agent, for each Calculation Period for which the Leverage Ratio
is greater than or equal to the Specified Level, the Stress Factor may be
changed to 2.25; provided, however, that (i) if
a Parent Compliance Certificate is not delivered when due in accordance with Section 5.01(a)(xi),
the Stress Factor will be deemed to be 2.25 until the first day of the
Calculation Period following delivery of a Parent Compliance Certificate
revealing a Leverage Ratio of less than the applicable Specified Level; (ii) if
any Parent Compliance Certificate delivered proves to understate the Leverage
Ratio, then the Stress Factor will be retroactively adjusted to the proper
level and if such adjustment results in the Percentage Interest exceeding the
Maximum Percentage Interest, the Transferor will immediately pay an amount to
the Administrative Agent’s Account for application to the Net Investment
sufficient to eliminate such excess; and (iii) if any Parent Compliance
Certificate delivered proves to overstate the Leverage Ratio, the Stress Factor
shall be prospectively adjusted as of the first day of the Calculation Period
in which a corrected certificate is delivered.

 

“Subordinated Note”
shall have the meaning specified in Section 3.02(b) of the
Receivables Purchase Agreement.

 

“Subsidiary” of a
Person shall mean any Person more than 50% of the outstanding voting interests
of which shall at any time be owned or controlled, directly or indirectly, by
such Person 

 

78

 

or
by one or more Subsidiaries of such Person or any similar business organization
which is so owned or controlled.

 

“Termination Date”
shall mean with respect to each Purchaser the earliest of (i) the Business
Day designated by the Transferor to the Purchasers as the Termination Date at
any time following thirty (30) Business Days’ written notice to the Purchasers,
(ii) the day upon which a Termination Date is declared or automatically
occurs relating to a Termination Event pursuant to Section 7.02(a) of
the Receivables Transfer Agreement, (iii) the Commitment Expiry Date, and (iv) the
Purchase Termination Date with respect to all of the Sellers under the
Receivables Purchase Agreement.

 

“Termination Event”
shall mean an event described in Section 7.01 of the Receivables Transfer
Agreement

 

“Tranche” shall mean
each Purchaser’s Funded Amount.

 

“Tranche Period”
shall mean an ABR Tranche Period or an LMIR Tranche Period, as applicable.

 

“Tranche Rate” shall
mean (a) at any time while the LMIR is available, the sum of the LMIR plus
the Applicable Margin, and (b) at all other times, the sum of the
Alternate Base Rate plus the Applicable Margin.

 

“Transaction Documents”
shall mean, collectively, the Receivables Transfer Agreement, the Receivables
Purchase Agreement, the Fee Letter, the Lock-Box Agreements, the Subordinated
Note and all of the other instruments, documents, certificates and other
agreements executed and delivered by the Sellers or the Transferor in
connection with any of the foregoing, in each case, as the same may be amended,
restated, supplemented or otherwise modified from time to time.

 

“Transfer” shall mean
a conveyance, transfer and assignment by the Transferor to the Purchasers of an
undivided percentage ownership interest in Receivables and Related Security
pursuant to, and in accordance with the Receivables Transfer Agreement
(including, without limitation, as a result of any reinvestment Collections in
Transferred Interests pursuant to Section 2.02(b) and 2.05 of the Receivables
Transfer Agreement).

 

“Transfer Date” shall
mean, with respect to each Transfer, the Business Day on which such Transfer is
made.

 

“Transfer Price”
shall mean, with respect to any incremental Transfer, the amount paid to the
Transferor by the Purchasers.  The
Transfer Price for any Incremental Transfer shall be equal to the aggregate Net
Investment (including such Incremental Transfer) minus the aggregate
portion of the Net Investment paid in connection with all prior Transfers.

 

“Transferor” shall
mean TSPC, Inc., a Nevada corporation, and its successors and permitted
assigns.

 

79

 

“Transferred Interest”
shall mean, on any date of determination, an undivided percentage ownership
interest of the Purchasers in (i) each and every then outstanding
Receivable, (ii) all Related Security with respect to each such
Receivable, (iii) all Collections with respect thereto, and (iv) other
Proceeds of the foregoing, which undivided ownership interest shall be equal to
the Percentage Interest at such time, and only at such time (without regard to
prior calculations).  The Transferred
Interest in each Receivable, together with Related Security, Collections and
Proceeds with respect thereto, shall at all times be equal to the Transferred
Interest in each other Receivable, together with Related Security, Collections
and Proceeds with respect thereto.  To
the extent that the Transferred Interest shall decrease as a result of a recalculation
of the Percentage Interest, the Purchasers shall be considered to have
reconveyed to the Transferor an undivided percentage ownership interest in each
Receivable, together with Related Security, Collections and Proceeds with
respect thereto, in an amount equal to such decrease such that, in each case,
the Transferred Interest in each Receivable shall be equal to the Transferred
Interest in each other Receivable.

 

“Transfer Notice”
shall have the meaning specified in Section 2.02(a) of the
Receivables Transfer Agreement.

 

“Transfer Supplement”
shall have the meaning specified in Section 10.06(d)(i) of the
Receivables Transfer Agreement.

 

“TriMas Corp.” shall
mean the TriMas Corporation, a Delaware corporation, and its successors and
assigns.

 

“TriMas LLC” shall
mean the TriMas Company LLC, a Delaware limited liability company, and its
successors and assigns.

 

“U.S.” or “United
States” shall mean the United States of America and its territories.

 

“Wachovia” shall mean
Wachovia Bank, National Association, a national banking association, in its
individual capacity, and its successors.

 

80

 

SCHEDULE
B

 

PURCHASERS AND THEIR COMMITMENTS

 

	
  Purchaser(s)

  	
   

  	
  Commitment(s)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Wachovia
  Bank, National Association, and its successors

  6 Concourse Parkway, Suite 1450

  Atlanta, GA 30328

  Attn:     Eero Maki

  Phone:  (404) 732-0821

  Fax:      (404)  732-0801

  Email:  Eero.Maki@wachovia.com

  	
   

  	
  $

  	
  75,000,000

  	
   

  
					

 

81

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