Document:

ex10_1.htm

    
      

    

    Exhibit
10.1

    Execution
Copy

    

    FIRST AMENDMENT TO CREDIT
AGREEMENT AND WAIVER

    

    THIS FIRST AMENDMENT TO CREDIT
AGREEMENT AND WAIVER, dated as of February 17, 2009 (this "Amendment"), is among
Modine Manufacturing Company, a Wisconsin corporation, any Foreign Subsidiary
Borrowers, the Lenders party hereto and JPMorgan Chase Bank, N.A., a national
banking association, as Swing Line Lender, as LC Issuer and as
Agent.

    

    RECITAL

    

    The Borrower, the Lenders party thereto
and the Agent are parties to an Amended and Restated Credit Agreement dated as
of July 18, 2008 (as amended or modified from time to time, the "Credit
Agreement").  The Borrower desires to amend the Credit Agreement and
the Agent and the Lenders are willing to do so in accordance with the terms
hereof.

    

    TERMS

    

    In consideration of the premises and of
the mutual agreements herein contained, the parties agree as
follows:

    

    ARTICLE
1.

    WAIVER

    

    1.1           The
Borrower has informed the Lenders and the Agent that Defaults have occurred
under Section 7.2 of the Credit Agreement due to a breach of Sections 6.18(a)
and (b) of the Credit Agreement as of December 31, 2008 (the "Existing
Defaults").  The Borrower has requested that the Lenders and the Agent
waive the Existing Defaults.

    

    1.2           Pursuant
to such request, and subject to (a) the accuracy of the representations of the
Borrower hereunder, and (b) the satisfaction of the conditions to the
effectiveness of this Agreement specified in Article IV hereof, the Lenders
hereby waive the Existing Defaults.  The Borrower acknowledges and
agrees that the waiver contained herein is a limited, specific, and one-time
waiver as described above.  Such limited waiver shall not modify or
waive any other Default or Unmatured Default or any other term, covenant or
agreement contained in any of the Loan Documents, and shall not be deemed to
have prejudiced any present or future right or rights which the Agent or the
Lenders now have or may have under the Credit Agreement or the other Loan
Documents and, in addition, shall not entitle the Borrower or the Guarantors (or
any of them) to a waiver, amendment, modification or other change to, of or in
respect of any provision of any of the Loan Documents in the future in similar
or dissimilar circumstances.

    

    ARTICLE
2.

    AMENDMENTS

    

    The
Credit Agreement shall be amended as follows:

    

    2.1           The
following definitions are added to the Credit Agreement in appropriate
alphabetical order:

    

    “Additional Covenant” shall mean any
affirmative or negative covenant or similar restriction applicable to the
Borrower or any Subsidiary (regardless of whether such provision is labeled or
otherwise characterized as a covenant) the subject matter of which either (i) is
similar to that of any covenant in Article 6 of this Agreement, or related
definitions herein, but contains one or more percentages, amounts or formulas
that is more restrictive than those set forth herein or more beneficial to the
lender under any agreement with respect to any Indebtedness of the Borrower or
such Subsidiary or any agreement for the refinancing or extension of all or a
portion of the Indebtedness thereunder (and such covenant or similar restriction
shall be deemed an Additional Covenant only to the extent that it is more
restrictive or more beneficial) or (ii) is different from the subject matter of
any covenants in Article 6 of this Agreement, or related definitions
herein.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    “Additional Default” shall mean any
provision contained in any agreement with respect to any Indebtedness of the
Borrower or any Subsidiary or any agreement for the refinancing or extension of
all or a portion of the Indebtedness thereunder which permits the holders of
such Indebtedness to accelerate (with the passage of time or giving of notice or
both) the maturity thereof or otherwise requires the Borrower or any Subsidiary
to purchase the Indebtedness thereunder or any agreement for the refinancing or
extension of all or a portion of the Indebtedness thereunder prior to the stated
maturity thereof and which either (i) is similar to any Default or Event of
Default contained in Article 7 of this Agreement, or related definitions herein,
but contains one or more percentages, amounts or formulas that is more
restrictive or has a shorter grace period than those set forth herein or is more
beneficial to the lender under any agreement with respect to any Indebtedness of
the Borrower or such Subsidiary or any agreement for the refinancing or
extension of all or a portion of the Indebtedness thereunder (and such provision
shall be deemed an Additional Default only to the extent that it is more
restrictive, has a shorter grace period or is more beneficial) or (ii) is
different from the subject matter of any Default or Event of Default contained
in Article 7 of this Agreement, or related definitions herein.

    

    “Adjusted Eurocurrency Reference Rate”
means, with respect to a Eurocurrency Advance for the relevant Interest Period,
the sum of (i) the quotient of (a) the Eurocurrency Reference Rate applicable to
such Interest Period, divided by (b) one minus the Reserve Requirement
(expressed as a decimal) applicable to such Interest Period, plus (ii) in the
case of Loans by a Lender from its Lending Installation in the United Kingdom,
the Mandatory Cost Rate.

    

    “Banking
Services” shall mean all treasury management services (including, without
limitation, controlled disbursement, automated clearinghouse transactions,
return items, overdrafts and interstate depository network services and
international treasury management services), commercial credit cards and stored
value cards, provided to any of the Borrower or any of its Subsidiaries by any
Lender or any Lender's Affiliates.

    

    “Banking Services Obligations” shall
mean any and all obligations of any of the Borrower or any of its Subsidiaries,
whether absolute or contingent and howsoever and whensoever created, arising,
evidenced or acquired (including all renewals, extensions and modifications
thereof and substitutions therefor) in connection with Banking
Services.

    

    "Brazil Holdback" means the contingent
obligation of the Borrower to the former owners of Modine do Brasil Sistemas
Termicos Ltda. in the amount of $2,000,000.

    

    “Capital Expenditures” means for any
period all direct or indirect (by way of acquisition of securities of a Person
or the expenditure of cash or the transfer of property or the incurrence of
Indebtedness) expenditures in respect of the purchase or other acquisition of
fixed or capital assets determined in conformity with Agreement Accounting
Principles.

    

    "Capital
Stock" means (i) in the case of any corporation, all capital stock and any
securities exchangeable for or convertible into capital stock and any warrants,
rights or other options to purchase or otherwise acquire capital stock or such
securities or any other form of equity securities, (ii) in the case of an
association or business entity, any and all shares, interests, participations,
rights or other equivalents (however designated) of corporate stock, (iii) in
the case of a partnership or limited liability company, partnership or
membership interests (whether general or limited) and (iv) any other interest or
participation that confers on a Person the right to receive a share of the
profits and losses of, or distributions of assets of, the issuing
Person.

    
      
         

      

      
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    "Collateral" shall mean all assets of
the Borrower and each of its Subsidiaries in which a Lien is required to be
granted to secure the Obligations.

    

    "Collateral Agent" means JPMorgan in
its capacity as collateral agent under the Collateral Documents.

    

    "Collateral Documents" means,
collectively, the Intercreditor Agreement, the Security Agreements, the
Mortgages and all other agreements or documents granting or perfecting a Lien in
favor of the Collateral Agent for the benefit of the Secured Parties under the
Intercreditor Agreement or otherwise providing support for the Secured
Obligations at any time, as any of the foregoing may be amended or modified from
time to time.

    

    “Consolidated
Capital Expenditures” means, with reference to any period, the Capital
Expenditures of the Borrower and its Subsidiaries calculated on a consolidated
basis for such period.

    

    “Defaulting Lender” means any Lender,
as determined by the Agent, that has (a) failed to fund any portion of its Loans
or participations in Facility LC's or Swing Line Loans within three Business
Days of the date required to be funded by it hereunder, (b) notified the
Borrower, the Agent, the Issuing Bank, the Swing Line Lender or any Lender in
writing that it does not intend to comply with any of its funding obligations
under this Agreement or has made a public statement to the effect that it does
not intend to comply with its funding obligations under this Agreement or under
other agreements in which it commits to extend credit, (c) failed, within three
Business Days after request by the Agent, to confirm that it will comply with
the terms of this Agreement relating to its obligations to fund prospective
Loans and participations in then outstanding Facility LC's and Swing Line Loans,
(d) otherwise failed to pay over to the Agent or any other Lender any other
amount required to be paid by it hereunder within three Business Days of the
date when due, unless the subject of a good faith dispute, or (e) (i) becomes or
is insolvent or has a parent company that has become or is insolvent or (ii)
become the subject of a bankruptcy or insolvency proceeding, or has had a
receiver, conservator, trustee or custodian appointed for it, or has taken any
action in furtherance of, or indicating its consent to, approval of or
acquiescence in any such proceeding or appointment or has a parent company that
has become the subject of a bankruptcy or insolvency proceeding, or has had a
receiver, conservator, trustee or custodian appointed for it, or has taken any
action in furtherance of, or indicating its consent to, approval of or
acquiescence in any such proceeding or appointment.

    

    "Disqualified
Stock" means any
Capital Stock that, by its terms (or by the terms of any security into which it
is convertible or for which it is exchangeable), or upon the happening of any
event, matures or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or redeemable at the option of the holder thereof, in
whole or in part prior to a date one year after the Facility Termination
Date.

    

    "Event of Loss" means, with respect to
any property of the Borrower and its Subsidiaries, any loss, destruction or
damage of such property or any condemnation, seizure or taking, by exercise of
the power of eminent domain or otherwise, of such property, or confiscation of
such property or the requisition of the use of such property.

    

    "First
Amendment" means the First Amendment to this Agreement dated as of the First
Amendment Effective Date.

    
      
         

      

      
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    "First
Amendment Effective Date" shall mean February 17, 2009.

    

    "January
2009 Financial Forecasts" means the financial forecasts provided to the Lenders
by the Borrower on January 25, 2009, and the Quarterly EBITDA Sensitivity
Analysis provided to the Lenders by the Borrower on February 5,
2009.

    

    "Modine
Holding Consolidated Group" means Modine Holding GmbH and its Subsidiaries
existing as of the First Amendment Effective Date.

    

    "Modine
Korea" means Modine Korea, LLC, a wholly owned Subsidiary of the
Borrower.

    

    "Mortgages" means each mortgage, deed
of trust and similar agreement and any other agreement from any Borrower or
Guarantor granting a Lien on any of its real property, each in form and
substance acceptable to the Agent and as amended or modified from time to time,
entered into by any Borrower or Guarantor at any time for the benefit of the
Collateral Agent and the Secured Parties pursuant to this Agreement or the
Intercreditor Agreement.

    

    "Net Cash Proceeds" means, without
duplication, in connection with any issuance of Capital Stock, sale or other
disposition of any asset or any settlement by, or receipt of payment in respect
of, any property insurance claim or condemnation award, the cash proceeds
(including any cash payments received by way of deferred payment of principal
pursuant to a note or installment receivable or purchase price adjustment
receivable or otherwise, but only as and when received) of such sale, settlement
or payment, net of (i) direct costs relating solely to such sale, other
disposition or settlement, including sales commissions and reasonable and
documented attorneys' fees, accountants' fees, investment banking fees, and
other customary fees and expenses actually incurred in connection therewith,
(ii) amounts required to be applied to the repayment of Indebtedness secured by
a Lien expressly permitted hereunder on any asset which is the subject of such
sale, insurance claim or condemnation award (other than any Lien in favor of the
Agent for the benefit of the Agent and the Lenders) and (iii) taxes paid or
reasonably estimated to be payable as a result thereof.

    

    "Note Purchase Agreements" means the
2005 Note Purchase Agreement and the 2006 Note Purchase Agreement.

    

    "Note Purchase Documents" means the
2005 Note Purchase Documents and the 2006 Note Purchase Documents.

    

    "Secured Obligations" means,
collectively, all (i) Obligations, (ii) Rate Management Obligations owing to one
or more Lenders or their Affiliates, (iii) 2005 Senior Note Debt, (iv) 2006
Senior Note Debt and (v) Banking Services Obligations.

    

    "Secured Parties" means the Collateral
Agent, the Agent, the Lenders, the Senior Note Holders and the other holders of
the Secured Obligations.

    

    "Security Agreements" means each
security agreement, pledge agreement, pledge and security agreement and similar
agreement and any other agreement from any Borrower or Guarantor granting a Lien
on any of its personal property (including without limitation any Capital Stock
owned by such Borrower or Guarantor), each in form and substance acceptable to
the Agent and as amended or modified from time to time, entered into by any
Borrower or Guarantor at any time for the benefit of the Collateral Agent and
the Secured Parties pursuant to this Agreement or the Intercreditor
Agreement.

    

    "Senior Note Holders" means the 2005
Senior Note Holders and the 2006 Senior Note Holders.

    
      
         

      

      
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    "2005
Note Purchase Documents" means the 2005 Note Purchase Agreement, the 2005 Senior
Notes and all agreements and documents executed in connection therewith at any
time and as amended or modified from time to time.

    

    "2005
Senior Note Debt" means the indebtedness and other liabilities owing pursuant to
any 2005 Note Purchase Documents at any time.

    

    "2005
Senior Note Holders" means the holders of the 2005 Senior Note
Debt.

    

    "2005
Senior Notes" means the 4.91% Senior Notes due September 29, 2015 in the
aggregate principal amount of $75,000,000 issued by the Borrower pursuant to the
2005 Note Purchase Agreement, as amended or modified from time to time and
including any notes issued in exchange or replacement for such notes, and any
other securities issued pursuant to the 2005 Note Purchase Agreement at any
time.

    

    "2006
Note Purchase Documents" means the 2006 Note Purchase Agreement, the 2006 Senior
Notes and all agreements and documents executed in connection therewith at any
time and as amended or modified from time to time.

    

    "2006
Senior Note Debt" means the indebtedness and other liabilities owing pursuant to
any 2006 Note Purchase Documents at any time.

    

    "2006
Senior Note Holders" means the holders of the 2006 Senior Note
Debt.

    

    "2006
Senior Notes" means the 5.68% Senior Notes, Series A, due December 7, 2017 in
the aggregate principal amount of $50,000,000 issued by the Borrower pursuant to
the 2006 Note Purchase Agreement and the 5.68% Senior Notes, Series B, due
December 7, 2018 in the aggregate principal amount of $25,000,000 issued by the
Borrower pursuant to the 2006 Note Purchase Agreement, in each case as amended
or modified from time to time and including any notes issued in exchange or
replacement for such notes, and any other securities issued pursuant to the 2006
Note Purchase Agreement at any time.

    

    2.2           The
following definitions in the Credit Agreement are restated as
follows.

    

    "Alternate Base Rate" means, for any
day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on
such day, (b) the Federal Funds Effective Rate in effect on  such day
plus 1⁄2 of 1% per annum and (c) the Adjusted Eurocurrency Reference Rate for a
one month Interest Period on such day (or if such day is not a Business Day, the
immediately preceding Business Day) plus 1%.  Any change in the
Alternate Base Rate due to a change  in the Prime Rate, the Federal
Funds Effective Rate or the Adjusted Eurocurrency Reference Rate shall be
effective from and including the effective date of such change in the Prime
Rate, the Federal Funds Effective Rate or the Adjusted Eurocurrency Reference
Rate, respectively.

    

    “Applicable Fee Rate” means, at any
time and as the context may require, (i) 0.50% per annum with respect to
commitment fees accruing on the Available Aggregate Commitment, (ii) 4.75% per
annum with respect to letter of credit fees accruing on the undrawn stated
amount of standby Facility LCs or (iii) 2.375% per annum with respect to letter
of credit fees accruing on the undrawn stated amount of commercial Facility
LCs.

    

    “Applicable Margin” means with respect
to (i) any Eurocurrency Advances, 4.75% and (ii) Floating Rate Advance,
3.75%.

    
      
         

      

      
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    “Consolidated Net Income” means, as to
any Person and with reference to any period, the net income (or loss) of such
Person and its Subsidiaries calculated on a consolidated basis for such period,
(a) excluding (i) any non-cash charges or gains which are unusual, non-recurring
or extraordinary, (ii) any non-cash charges or gains related to exchange gains
or losses on intercompany loans or to the Brazil Holdback, (iii) for purposes of
Section 6.18 only, Restructuring Charges subject to the limits set forth in the
definition of Restructuring Charges, and (iv) fees and expenses incurred by or
for the account of the Borrower with respect to any Financial Advisor engaged
pursuant to Sections 9.6(d) and (e) hereof or Sections 15.2 and 15.3 of the Note
Purchase Agreements as in effect on the First Amendment Effective Date; and (b)
including, to the extent not otherwise included in the determination of
Consolidated Net Income, all cash dividends and cash distributions received by
the Borrower or any Subsidiary from any Person in which the Borrower or such
Subsidiary has made an investment; provided, however, that for any
calculation of Consolidated Net Income for any period commencing on or after
April 1, 2009, Modine Korea shall not be included as a Subsidiary of the
Borrower.

    

    “Consolidated Total Debt” means as to
any Person and at any time Indebtedness and, without duplication, Debt (as such
term is defined in the Note Purchase Agreements as of the First Amendment
Effective Date) of such Person and its Subsidiaries calculated on a consolidated
basis.

    

    “Guarantor” means (a) with respect to
the Obligations and Rate Management Obligations owing by the Borrower, each
Subsidiary required under this Agreement to execute and deliver a Guaranty and
its successors and assigns with respect to such Obligations and Rate Management
Obligations, and (b) with respect to the Obligations and Rate Management
Obligations owing by a Foreign Subsidiary Borrower, the Borrower and its
successors and assigns and each Subsidiary required under this Agreement to
execute and deliver a Guaranty and its successors and assigns with respect to
such Obligations and Rate Management Obligations.

    

    "Intercreditor Agreement" shall mean
the Collateral Agency and Intercreditor Agreement among the Secured Parties of
the Borrower and JPMorgan, as Collateral Agent, dated as of the date hereof, as
amended or modified from time to time, provided that such Intercreditor
Agreement, and any amendments or modifications thereto, shall be in form and
substance acceptable to the Required Lenders and the Agent.

    

    “Interest Expense Coverage Ratio”
means, as of any date of calculation, the ratio of (i) the Borrower’s
Consolidated Adjusted EBITDA for the then most recently ended four fiscal
quarters to (ii) the Borrower’s Consolidated Interest Expense for the then most
recently ended four fiscal quarters.

    

    “Leverage Ratio” means, as of any date
of calculation, the ratio of (i) the Borrower’s Consolidated Total Debt
outstanding on such date, minus the amount of any cash collateral provided for
any of the Obligations, the Rate Management Obligations owing to one or more
Lenders or their Affiliates or the Banking Services Obligations, to (ii) the
Borrower’s Consolidated Adjusted EBITDA for the then most recently ended four
fiscal quarters.

    

    "Loan Documents" means this Agreement,
the Guaranties, the Facility LC Applications, the Collateral Documents, any
Notes issued pursuant to Section 2.16 and any other agreements or instruments
executed in connection herewith at any time.

    

    "Material Indebtedness" means (a) 2005
Senior Note Debt, (b) 2006 Senior Note Debt, and (c) any other Indebtedness
(other than the Loans and Facility LC's) of the Borrower in an aggregate
principal amount exceeding $5,000,000.

    

    “Qualified Receivables Transaction”
means any transaction or series of transactions that may be entered into by the
Borrower or any Subsidiary pursuant to which the Borrower or any Subsidiary may
sell, convey or otherwise transfer to a newly-formed Subsidiary or other
special-purpose entity, or any other Person, any accounts or notes receivable
and rights related thereto on a limited recourse basis, provided that (i) such
sale, conveyance or transfer qualifies as a sale under Agreement Accounting
Principles and (ii) the aggregate outstanding Receivables Transaction Attributed
Indebtedness for all Qualified Receivables Transactions (including those listed
on Schedule 6.16 and any other Qualified Receivables Transaction at any time,
but excluding sales or assignments of trade notes receivable or accounts
receivable of the Borrower's Foreign Subsidiaries permitted under Section
6.17(b)) shall not exceed $15,000,000.

    
      
         

      

      
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    “Restructuring Charges” means certain
cash charges related any restructuring program of the Borrower and its
Subsidiaries subject to the following limitations:

    

    (a) such
charges specifically relate to the following categories of expense incurred in
connection with any such restructuring: severance and related benefits;
contractual salary continuation with respect to terminated employees, retained
restructuring consulting; equipment transfer; employee outplacement;
environmental services; and employee insurance and benefits
continuation.

    

    (b) the
aggregate amount of all Restructuring Charges shall not exceed $14,000,000 for
all times after December 31, 2008.

    

    "Significant Subsidiary" means any
Subsidiary that, together with its subsidiaries, owns consolidated total assets
with a value of greater than $1,000,000 at any time.

     

    
      	
               
      

            	
              2.3

            	
              Section
      2.3 is restated as follows:

            

    

    

    
      	
               
      

            	
              2.3

            	
              Determination of
      Dollar Amounts; Required Payments;
  Termination.

            

    

    

    
      	
               
      

            	
              (a)

            	
              The
      Agent will determine the Dollar Amount
of:

            

    

    

    (i) each
Credit Extension as of the date three Business Days prior to (x) in the case of
an Advance, the Borrowing Date or, if applicable, date of
conversion/continuation of such Advance, and (y) in the case of a Facility LC,
the date for which a Borrower has requested issuance of such Facility LC,
and

    

    (ii)  all
outstanding Credit Extensions on and as of the last Business Day of each month
and on any other Business Day elected by the Agent in its discretion or upon
instruction by the Required Lenders.

    

    Each day
upon or as of which the Agent determines Dollar Amounts as described in the
preceding clauses (i) and (ii) is herein described as a “Computation Date” with
respect to each Credit Extension for which a Dollar Amount is determined on or
as of such day.  If at any time the Dollar Amount of the Aggregate
Outstanding Credit Exposure (calculated, with respect to those Credit Extensions
denominated in Agreed Currencies other than Dollars, as of the most recent
Computation Date with respect to each such Credit Extension) exceeds the
Aggregate Commitment, the Borrowers shall immediately repay Advances in an
aggregate principal amount sufficient to eliminate any such excess.

    

    (b)           In
addition to all other payments of the Obligations or relating to the Obligations
required hereunder and unless waived by the Required Lenders, the Borrower shall
pay or cause to paid 100% of the Asset Sale Net Proceeds as a prepayment of the
principal amount of the Advances in excess of $94,000,000 (up to the amount of
such excess) and, if any Asset Sale Net Proceeds remain thereafter, shall pay
such remaining amounts to the Collateral Agent, to be held by the Collateral
Agent in accordance with Section 4.2(b) of the Intercreditor Agreement as in
effect on the date hereof (and giving effect to any amendment thereof only if
agreed to by the Borrower) and applied to the Secured Obligations (as defined in
the Intercreditor Agreement as in effect on the date hereof, and giving effect
to any amendment thereof only if agreed to by the Borrower) in accordance with
the Intercreditor Agreement as in effect on the date hereof, and giving effect
to any amendment thereof only if agreed to by the Borrower.  The
amount paid to the Collateral Agent and held by the Collateral Agent shall not
reduce the Obligations until, and only to the extent, such amounts are applied
by the Collateral Agent to the Obligations in accordance with the Intercreditor
Agreement as in effect on the date hereof (and giving effect to any amendment
thereof only if agreed to by the Borrower).

    
      
         

      

      
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    As used
herein, "Asset Sale Net Proceeds" means 100% of all of the Net Cash Proceeds
from any sale, Event of Loss, license, lease or other disposition or transfer of
any assets (including without limitation any Sale and Leaseback Transaction and
any sale permitted under Section 6.17(b) or (c), but excluding the Excluded
Sales described below) in excess of $25,000,000 in aggregate amount after the
First Amendment Effective Date, each payable and effective upon receipt of such
Net Cash Proceeds.  As used herein, "Excluded Sales" means (i) the
sale of inventory in the ordinary course of business, (ii) the sale of obsolete
or worn-out property in the ordinary course of business not to exceed $1,000,000
in the aggregate after the First Amendment Effective Date, (iii) sales of notes
receivable or accounts receivable to the extent permitted under Section 6.17;
(iv) revenues from licenses in existence on the First Amendment Effective Date,
including all renewals, extensions and modifications thereof and substitutions
therefor, or (v) if the Borrower shall deliver to the Agent a certificate of a
Authorized Officer to the effect that the Borrower or its applicable Subsidiary
receiving the Net Cash Proceeds from an Event of Loss intends to apply the Net
Proceeds from such event (or a portion thereof specified in such certificate),
within 180 days after receipt of such Net Proceeds, to acquire (or replace
or rebuild) real property or equipment to be used in the business of the
Borrower or its Subsidiaries, and certifying that no Default has occurred and is
continuing, then such Net Cash Proceeds specified in such certificate shall be
excluded from the prepayment determination required under the first sentence of
this Section 2.3(b), provided that to the
extent of any such Net Cash Proceeds therefrom that have not been so applied by
the end of such 180 day period, such Net Cash Proceeds will not be so excluded,
and will be included in the calculation contained in the first sentence of this
Section 2.3(b) in determining whether a prepayment shall then be
required.

    

    Notwithstanding
anything herein to the contrary, and the Aggregate Commitment will be
automatically reduced by (x) 100% of the Asset Sale Net Proceeds used as a
prepayment of the principal amount of the Advances in excess of $94,000,000,
simultaneously with such payment, and (y) 38.524590163% of all Asset Sale Net
Proceeds paid to the Collateral Agent and to be held by the Collateral Agent
(provided that, if a greater percentage thereof is applied by the Collateral
Agent to the principal amount of the Advances, then such amount in excess of the
amount that previously reduced the Aggregate Commitment shall further reduce the
Aggregate Commitments as and when such amount is so applied to the principal
amount of the Advances).

    

    (c)           In
addition to all other payments of the Obligations required hereunder and unless
waived by the Required Lenders, if at any time (i) the aggregate principal
amount of the Aggregate Outstanding Credit Exposure exceeds $94,000,000 and (ii)
the aggregate amount of cash and Cash Equivalent Investments (excluding the
aggregate amount of any cash collateral for any Obligations or Rate Management
Obligations) of the Borrower and its Domestic Subsidiaries on hand exceeds
$10,000,000 (the "Excess Domestic Cash"), then the Borrowers shall prepay the
Obligations or cause the Obligations to be prepaid by the amount of the Excess
Domestic Cash on or within 14 days after such excess occurs, unless any such
other payment is required to be made at such time under this Agreement or the
Intercreditor Agreement.

    

    (d)           In
addition to all other payments of the Obligations required hereunder and unless
waived by the Required Lenders, if at any time (i) the aggregate principal
amount of the Aggregate Outstanding Credit Exposure exceeds $94,000,000 and (ii)
the aggregate amount of cash and Cash Equivalent Investments (excluding the
aggregate amount of any cash collateral for any Obligations or Rate Management
Obligations) of the Foreign Subsidiaries on hand exceeds $20,000,000 (the
"Excess Foreign Cash"), then the Borrowers shall cause the Obligations to be
prepaid by the amount of the Excess Foreign Cash (and the Borrower shall cause
the Excess Foreign Cash to be repatriated to the United States to effect such
prepayment, and it is acknowledged that such repatriation may be in the form of
dividends from the applicable Foreign Subsidiary or by loan from the applicable
Foreign Subsidiary to the Borrower evidenced by documents satisfactory to the
Agent and subordinated to all Secured Obligations on terms and by agreements
satisfactory to the Agent) on or within 45 days after such excess occurs, unless
any such other payment is required to be made at such time under this Agreement
or the Intercreditor Agreement; provided,
that  no such prepayment or repatriation shall be required if the
amount of Excess Foreign Cash is reduced to zero through ordinary uses of cash
by such Foreign Subsidiary in compliance with this
Agreement.  Notwithstanding anything in this Section 2.3(d) to the
contrary, to the extent that the Borrower has determined in good faith and has
documented in reasonable detail to the reasonable satisfaction of the Agent,
that any repatriation of Excess Foreign Cash would (i) result in material
adverse tax consequences, (ii) result in a material breach of any agreement
governing Indebtedness of such Foreign Subsidiary permitted to exist or to be
incurred by such Foreign Subsidiary under the terms of this Agreement and/or
(iii) be limited or prohibited under applicable local law, the prepayment
required by this Section 2.3(d) shall be deferred on terms to be agreed between
the Borrower and the Agent; provided that in each
case the Borrower and such Foreign Subsidiary shall take commercially reasonable
steps (except to the extent that any such steps result in material cost or tax
to the Borrower or any of its Subsidiaries) to minimize any such adverse tax
consequences and/or to obtain any exchange control clearance or other consents,
permits, authorizations or licenses which are required to enable such Excess
Foreign Cash to be repatriated or advanced to, and applied by, the Borrower in
order to effect such a prepayment.

    
      
         

      

      
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    (e)           In
addition to all other payments of the Obligations or relating to the Obligations
required hereunder and unless waived by the Required Lenders, the Borrower shall
pay 100% of the Equity Issuance Net Proceeds as a prepayment of the principal
amount of the Advances in excess of $94,000,000 (up to the amount of such
excess) and, if any Equity Issuance Net Proceeds remain thereafter, shall pay
such remaining amounts to the Collateral Agent, to be held by the Collateral
Agent in accordance with Section 4.2(b) of the Intercreditor Agreement as in
effect on the date hereof (and giving effect to any amendment thereof only if
agreed to by the Borrower) and applied to the Secured Obligations (as defined in
the Intercreditor Agreement as in effect on the date hereof, and giving effect
to any amendment thereof only if agreed to by the Borrower) in accordance with
the Intercreditor Agreement as in effect on the date hereof, and giving effect
to any amendment thereof only if agreed to by the Borrower.  The
amount paid to the Collateral Agent and held by the Collateral Agent shall not
reduce the Obligations until, and only to the extent, such amounts are applied
by the Collateral Agent to the Obligations in accordance with the Intercreditor
Agreement as in effect on the date hereof (and giving effect to any amendment
thereof only if agreed to by the Borrower).

    

    As used
herein, "Equity Issuance Net Proceeds" means 50% of all of the Net Cash Proceeds
from issuance of any Capital Stock by the Borrower.

    

    Notwithstanding
anything herein to the contrary, and the Aggregate Commitment will be
automatically reduced by (x) 100% of the Equity Issuance Net Proceeds used as a
prepayment of the principal amount of the Advances in excess of $94,000,000,
simultaneously with such payment, and (y) 38.524590163% of all Equity Issuance
Net Proceeds paid to the Collateral Agent and to be held by the Collateral Agent
(provided that, if a greater percentage thereof is applied by the Collateral
Agent to the principal amount of the Advances, then such amount in excess of the
amount that previously reduced the Aggregate Commitment shall further reduce the
Aggregate Commitments as and when such amount is so applied to the principal
amount of the Advances).

    

    (f)       
    If the principal amount of the Aggregate Outstanding
Credit Exposure exceeds the Aggregate Commitment at any time, the Borrower shall
promptly pay, or cause to be paid, the amount of such excess.

    

    (g)           The
Aggregate Outstanding Credit Exposure and all other unpaid Obligations owing by
each Borrower shall be paid in full by each such Borrower on the Facility
Termination Date.

    
      
         

      

      
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    If any
prepayment required under this Section 2.2 would exceed the aggregate Loans at
such time and any LC Obligations are outstanding, then the amount of such excess
shall be deposited in the Facility LC Collateral Account.

    

    2.4           The
following is added to the end of Section 2.6:  "Notwithstanding
anything herein to the contrary, the Aggregate Commitment shall automatically be
reduced by the Dollar Amount by which the sum of (i) the aggregate principal
amount of Indebtedness incurred under Section 6.16(e) (and not including any
Indebtedness described on Schedule 6.16) by the members of the Modine Holding
Consolidated Group plus (ii) the aggregate unfunded committed amount of all
credit facilities for such Indebtedness, is in excess of €5,000,000, effective
as of the date such Indebtedness is incurred or such credit facility or
facilities are effective and as of the date any subsequent increase therein
occurs, provided that the aggregate reductions in the Aggregate Commitment
pursuant to this sentence shall not exceed $15,000,000.

    

    2.5           Section
2.26 is restated as follows:  Section 2.26 [Intentionally
Deleted].

    

    2.6           The
following new Sections 2.27 and 2.28 are added to the Credit
Agreement:

    

    2.27.        Collateral Security; Further
Assurances.     (i)  To secure the
payment when due of the Secured Obligations (subject to the Intercreditor
Agreement), the Borrower shall execute and deliver, or cause to be executed and
delivered, to the Collateral  Agent, Collateral Documents granting or
providing for the following:

    

    (a)           Security
Agreements granting a first priority, enforceable Lien and security interest,
subject to the Liens permitted by this Agreement and subject to the sharing
provisions to be contained in the Intercreditor Agreement, on all present and
future accounts, chattel paper, commercial tort claims, deposit accounts,
documents, farm products, fixtures, chattel paper, equipment, general
intangibles, goods, instruments, inventory, investment property,
letter-of-credit rights (as those terms are defined in the Illinois Uniform
Commercial Code) and all other personal property of the Borrower and of each
Guarantor, subject to any exclusions described in the Intercreditor Agreement or
approved by the Required Lenders.  Notwithstanding the foregoing, with
respect to Liens granted by the Borrower or any Guarantor on the Capital Stock
of any Foreign Subsidiary such Lien shall not exceed 65% (or such greater
percentage that, due to a change in an applicable law after the date hereof, (1)
could not reasonably be expected to cause the undistributed earnings of such
Foreign Subsidiary as determined for U.S. federal income tax purposes to be
treated as a deemed dividend to such Foreign Subsidiary's U.S. parent and (2)
could not reasonably be expected to cause any material adverse tax consequences)
of the issued and outstanding Capital Stock entitled to vote (within the meaning
of Treas. Reg. Section 1.956-2(c)(2)) and 100% of the issued and outstanding
Capital Stock not entitled to vote (within the meaning of Treas. Reg. Section
1.956-2(c)(2)) in each Foreign Subsidiary directly owned by the Borrower or any
Guarantor.  Notwithstanding the foregoing, at any time after a Default
has occurred or if the Agent determines that the Borrower will not incur a
material tax liability as result of such greater pledge, the Borrower shall,
upon the request of the Agent, have the balance of its Capital Stock pledged to
the Collateral Agent to secure, subject to the Intercreditor Agreement, the
Secured Obligations.

    

    (b)           Mortgages
granting a Lien on all present and future real property of the Borrower and of
each Guarantor to the extent such Liens are required by or on behalf of the
Agent, the Required Lenders or any Senior Note Holder.

    
      
         

      

      
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    (c)           Any
other Collateral required under the Note Purchase Documents.

    

    (ii)           Each
Foreign Subsidiary Borrower shall execute and deliver, or cause to be executed
and delivered, Collateral Documents requested by the Agent from each such
Foreign Subsidiary Borrower and each of its Subsidiaries, granting a first
priority, enforceable Lien and security interest, subject to the Liens permitted
by this Agreement and securing the Obligations owing by such Foreign Subsidiary
Borrower, on all present and future assets of such Foreign Subsidiary Borrower
and each of its Subsidiaries.  Additionally, to the extent required by
the Agent or the Required Lenders at any time after a Default has occurred or if
the Agent determines that the Borrower will not incur a material tax liability
as result of the following, the Borrower shall cause, to the extent legally
permitted and to the extent not prohibited by a restriction permitted under
Section 6.25 hereof, each other Foreign Subsidiary required by the Agent or the
Required Lenders to execute and deliver such Collateral Documents requested by
the Agent to grant a first priority (subject to the Liens permitted by this
Agreement), enforceable Lien and security interest on all present and future
assets of such Foreign Subsidiary securing the Obligations and Rate Management
Obligations owing by each Foreign Subsidiary Borrower.

    

    (iii)           On
or before the First Amendment Effective Date (or April 30, 2009 in the case of
Collateral Documents relating to the Collateral described in Section 2.27(i)(b)
or such later date agreed to by the Agent, provided that the Borrower shall use
commercially reasonable efforts to complete such Collateral Documents as soon as
practical), the Borrower shall cause all Collateral Documents as reasonably
requested by the Agent, in each case duly executed on behalf of the Borrower and
the Guarantors, as the case may be, granting to the Lenders and the Agent the
Collateral and support specified in Section 2.27 hereof, together with: (v) such
resolutions, certificates and opinions of counsel as reasonably requested by the
Agent; (w) the recordation, filing and other action (including payment of any
applicable taxes or fees) in such jurisdictions as the Lenders or the Agent may
deem necessary or appropriate with respect to the Collateral Documents,
including the filing of financing statements, Mortgages and other filings which
the Lenders or the Agent may deem necessary or appropriate to create, preserve
or perfect the liens, security interests and other rights intended to be granted
to the Lenders or the Agent thereunder, together with Uniform Commercial Code
record searches and other Lien searches in such offices as the Lenders or the
Agent may request; (x) evidence that the casualty and other insurance required
pursuant to the Loan Documents is in full force and effect; (y) originals of all
instruments and certificates representing all of the outstanding shares of
Capital Stock and other securities and instruments to be pledged thereunder,
with appropriate stock powers, endorsements and other powers duly executed in
blank; and (z) such other evidence that Liens creating a first priority security
interest, subject to the Intercreditor Agreement, in the Collateral shall have
been created and perfected as requested by the Agent and the satisfaction of all
other conditions in connection with the Collateral and the Collateral Documents
as reasonably requested by the Agent, including without limitation all opinions
of counsel, title work, surveys, environmental reports and other documents and
requirements requested by the Agent, provided that it is acknowledged that the
Agent is not requiring mortgagee title insurance, new surveys or new
environmental reports at this time, but may require such items and shall require
such other items in connection with the real estate as are required by the
Noteholders.

    

    (iv)           The
Borrowers agree that they will promptly notify the Agent of the formation,
acquisition or existence of any Subsidiary that is a Guarantor (per the
definition of Guarantor) that has not executed a Guaranty and Collateral
Documents or the acquisition of any assets on which a Lien is required to be
granted and that is not covered by existing Collateral
Documents.  Each Borrowers agrees that it will promptly execute and
deliver, and cause each Guarantor to execute and deliver, promptly upon the
request of the Agent, such additional Collateral Documents, Guaranties and other
agreements, documents and instruments, each in form and substance satisfactory
to the Agent, sufficient to grant the Guaranties and Liens contemplated by this
Agreement and the Collateral Documents.  Each Borrower shall deliver,
and cause each Guarantor to deliver, to the Agent all original instruments
payable to it with any endorsements thereto required by the
Agent.  Additionally, the Borrower shall execute and deliver, and
cause each Guarantor to execute and deliver, promptly upon the request of the
Agent, such certificates, legal opinions, lien searches, organizational and
other charter documents, resolutions and other documents and agreements as the
Agent may reasonably request in connection therewith.  Each Borrower
shall use its best efforts to cause each lessor of real property to it or any
Subsidiary where any material Collateral is located to execute and deliver to
the Agent an agreement in form and substance reasonably acceptable to the Agent
duly executed on behalf of such lessor waiving any distraint, lien and similar
rights with respect to any property subject to the Collateral Documents and
agreeing to permit the Collateral Agent to enter such premises in connection
therewith.  Each Borrower shall execute and deliver, and cause each
Guarantor to execute and deliver, promptly upon the reasonable request of the
Agent, such agreements and instruments evidencing any intercompany loans or
other advances among the Borrower and its Subsidiaries, or any of them, and all
such intercompany loans or other advances shall be, and are hereby made,
subordinate and junior to the Secured Obligations and no payments may be made on
such intercompany loans or other advances upon and during the continuance of a
Default unless otherwise agreed to by the Required Lenders.

    
      
         

      

      
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               2.28          
    Defaulting
Lenders.  Notwithstanding any provision of this Agreement to
the contrary, if any Lender becomes a Defaulting Lender, then the following
provisions shall apply for so long as such Lender is a Defaulting
Lender:

    

    (a) fees shall cease to accrue on the
unfunded portion of the Commitments of such Defaulting Lender pursuant to
Section 2.6;

    

    (b) if any Swing Line Loan or Facility
LC exists at the time a Lender is a Defaulting Lender, the Borrower shall within
one Business Day following notice by the Agent (i) prepay such Swing Line Loan
or, if agreed by the Swing Line Lender, cash collateralize the pro rata share of
the Swing Line Loans of the Defaulting Lender on terms satisfactory to the Swing
Line Lender, and (ii) cash collateralize such Defaulting Lender’s pro rata share
of the existing Facility LC in accordance with the procedures set forth herein
for so long as Facility LC's are outstanding; and

    

    (c) the LC Issuer shall not be required
to issue, amend or increase any Facility LC unless it is satisfied that cash
collateral will be provided in accordance with Section 2.28(b).

    

    Notwithstanding
anything herein to the contrary, (a) no Defaulting Lender shall be entitled to
vote (whether to consent or to withhold its consent) with respect to any
amendment, modification, termination or waiver of any provision of this
Agreement or any other Loan Document or any departure therefrom or any direction
from the Lenders to the Agent, and, for purposes of determining the Required
Lenders at any time, the Commitments of, and the Obligations owing to, each
Defaulting Lender shall be disregarded and (b) any modification of this Section
2.27 shall require the written consent of the Borrower, the Required Lenders,
the Agent, the Swing Line Lender and the LC Issuer.

    

    2.7           Section
4.2 is restated as follows:

    

    4.2           Each Credit
Extension.  The Lenders shall not (except as otherwise set
forth in Section 2.2(e) with respect to Revolving Loans for the purpose of
repaying Swing Line Loans) be required to make any Credit Extension to any
Borrower unless on the applicable Credit Extension Date:

    

    (a)  There exists no Default
or Unmatured Default.

    

    (b)  The representations and
warranties contained in Article 5 are true and correct as of such Credit
Extension Date except to the extent any such representation or warranty is
stated to relate solely to an earlier date, in which case such representation or
warranty shall have been true and correct on and as of such earlier
date.

    
      
         

      

      
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    (c)  No payment is required
under Section 2.3(c) or (d) or would be required under Section 2.3(c) after
making such Credit Extension, whether on the date such Credit Extension is made
or would be required after the lapse of the applicable grace period allowed
under Sections 2.3(c), as determined by the Agent or the Required
Lenders.

    

    Each
Borrowing Notice, request for issuance of a Facility LC, or Swing Line Borrowing
Notice, as the case may be, with respect to each such Credit Extension shall
constitute a representation and warranty by the Borrower that the conditions
contained in Sections 4.2(a) and (b) and, to its knowledge, 4.2 (c) and (d) have
been satisfied.

    

    2.8           Section
5.5(b) is restated as follows:

    

    (b)           Since
March 31, 2008, except as reflected in or contemplated by the January 2009
Financial Forecast, there has been no change in the business, Property,
condition (financial or otherwise) or results of operations of the Borrower and
its Subsidiaries that could reasonably be expected to have a Material Adverse
Effect.

    

    2.9           The
following new Sections 5.20 and 5.21 are added to the Credit
Agreement:

    

    5.20          2005 Senior Note and 2006
Senior Note Debt.  As of the First Amendment Effective Date,
the outstanding principal balance of the 2005 Senior Note Debt is $75,000,000
and all 2005 Note Purchase Documents (including the waiver and amendment and
other agreements and documents executed on or about the date hereof) have been
delivered to the Lenders prior to the First Amendment Effective
Date.  As of the First Amendment Effective Date, the outstanding
principal balance of the 2006 Senior Note Debt is $75,000,000 and all 2006 Note
Purchase Documents (including the waiver or amendment and other agreements and
documents executed on or about the date hereof) have been delivered to the
Lenders prior to the First Amendment Effective Date.  After giving
effect to the waivers and amendments to Note Purchase Documents being delivered
pursuant to Section 4.2 of the First Amendment, there is no event of default or
event or condition which would become an event of default with notice or lapse
of time or both, under any 2005 Note Purchase Document or 2006 Note Purchase
Document.

    

    5.21          Projections.  The
January 2009 Financial Forecasts were prepared by or on behalf of the Borrower
in good faith and on the basis of the assumptions stated therein and such
assumptions were believed by the Borrower to be reasonable at the time
prepared.  No facts are known to the Borrower as of the First
Amendment Effective Date which, if reflected in such January 2009 Financial
Forecasts, would result in a material adverse change in the assets, liabilities,
results of operations or cash flows reflected therein.

    

    2.10          The
first parenthetical clause in Section 6.1(a) is restated as follows: "(without a
"going concern" or like qualification or exception (other than for the fiscal
year ending March 31, 2009) and without any qualification or exception as to the
scope of such audit)".

    
      
         

      

      
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    2.11          Section
6.1(i) is replaced with the following:

    

    (i)       
     If requested by the Agent or the Required Lenders,
within 20 days after the end of each month (commencing with the first month
ending at least 15 days after such request), for itself and its Subsidiaries,
consolidated and consolidating unaudited balance sheets as at the close of each
such period and consolidated and consolidating profit and loss statements and a
statement of cash flows for the period from the beginning of such fiscal year to
the end of such month, all certified by an Authorized Officer;

    

    (j)       
    promptly after the delivery thereof, copies of any
reports by the Borrower Financial Advisor delivered to the Borrower, the board
of directors of the Borrower or any committee thereof at any time;

    

    (k)           simultaneously
with their delivery to any Senior Note Holders, such projections, financial
information and other reporting items delivered to any of the Senior Note
Holders or their representatives pursuant any Note Purchase
Documents;

    

    (l)      
     Promptly upon the request of the Agent or the
Required Lenders, an appraisal of the Borrower inventory of the Borrower and its
Domestic Subsidiaries, at the expense of the Borrower, by a valuation or
appraisal firm reasonably satisfactory to the Agent, provided that, if no
Default has occurred, not more than one such appraisal per fiscal year of the
Borrower shall be at the expense of the Borrower;

    

    (m)           Promptly
upon the request of the Agent or the Required Lenders, a consolidated thirteen
week rolling cash flow statement of the Borrower and its Subsidiaries, to be
updated by the Borrower weekly thereafter, and in form and detail acceptable to
the Required Lenders and the Agent;

    

    (n)     
      If requested by the Agent or the Required
Lenders, within 20 days after the end of each month (commencing with the first
month ending at least 15 days after such request), a schedule detailing the
inventory of the Borrower and its Subsidiaries, a schedule and aging of the
accounts receivable and payable of the Borrower and its Subsidiaries and a
schedule of daily cash balances of the Borrower and its Subsidiaries, each in
form and detail satisfactory to the Agent and with such supplemental information
relating thereto as requested by the Agent;

    

    (o)           promptly
upon receipt thereof, any notice received from any Senior Note Holder or agent
or trustee therefor and any notice that the Borrower or any of its Subsidiaries
is subject to any investigation of any kind by any governmental entity or stock
exchange;

    

    (p)           immediately
after becoming aware thereof, notice of any pending or threatened strike, work
stoppage, unfair labor practice claim, or other labor dispute affecting the
Borrower or any of its Subsidiaries; and

    

    (q)           such
other information (including non-financial information) as the Agent or any
Lender may from time to time reasonably request.

    

    Notwithstanding
the above, if any report or other information required under this Section 6.1 is
due on a day that is not a Business Day, then such report or other information
shall be required to be delivered on the first day after such day that is a
Business Day.

    

    2.12          Sections
6.2, 6.3, 6.4 and 6.5 are restated as follows:

    

    Section
6.2        
    Inspection of Property,
Books and Records.  The Borrower will, and will cause each
Subsidiary to, permit the Agent and the Lenders, by their respective
representatives and agents, to visit and inspect their respective properties in
order to: (a) examine and make abstracts from any of their respective books
and records; and (b) to discuss their respective affairs, finances and accounts
with their respective officers, employees and independent public
accountants.  The Borrower agrees to cooperate and assist in such
visits and inspections, in each case at such reasonable times and as often as
may reasonably be desired.  Without limiting the foregoing, the Agent
may conduct, at the Borrower's expense, such audits and field examinations of
the assets of the Borrower and its Subsidiaries during normal business hours on
reasonable notice and with reasonable frequency, all as determined by the
Agent.  The Borrower further agrees to conduct such periodic
teleconferences with the Agent and the Lenders and their respective advisors as
reasonably requested by the Agent.

    
      
         

      

      
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    Section
6.3      
      Restricted
Payments.  The Borrower will not, nor will it permit any
Subsidiary to, declare or make any Restricted Payment except any Subsidiary may
declare and pay dividends or make distributions to the Borrower or to a
Wholly-Owned Subsidiary.  The Borrower will not issue any Disqualified
Stock.

    

    Section
6.4        
    Loans or
Advances.  Neither the Borrower nor any of its Subsidiaries
shall make loans or advances to any Person except:

    

    (a) deposits required by government
agencies or public utilities;

    

    (b) existing loans or advances between
the Borrower and its Subsidiaries and between Subsidiaries described under the
heading of "Intercompany Loan Balances" on Schedule 6.16 hereto, but no increase
in the amount thereof (except to the extent increased amounts are permitted
under another clause of this Section 6.4);

    

    (c) loans or advances from any Foreign
Subsidiaries to the Borrower or any Guarantor, provided that such loans and
advances are evidenced by documents satisfactory to the Agent and are
subordinated to all Secured Obligations on terms and by agreements satisfactory
to the Agent;

    

    (d) loans and advances between the
Borrower and the Guarantors, provided that such loans and advances are evidenced
by documents satisfactory to the Agent;

    

    (e) loans and advances between Foreign
Subsidiaries, provided that such loans and advances are (i) evidenced by
documents satisfactory to the Agent and (ii) if such loans and advances are
owing by a Foreign Subsidiary Borrower or any Foreign Subsidiary guaranteeing
the Obligations of such Foreign Subsidiary Borrower, subordinated to all
Obligations and Rate Management Obligations owing by such Foreign Subsidiary
Borrower on terms and by agreements satisfactory to the Agent; and

    

    (f) other loans and advances made in
the ordinary course of business not exceeding $10,000,000 in the aggregate at
any time outstanding;

    

    provided
that after giving effect to the making of any loans, advances or deposits
permitted by clause (a), (b), (c), (d), (e) or (f) of this Section, no Default
or Unmatured Default shall have occurred and be continuing.

    

    Notwithstanding
anything herein to the contrary, the Borrower will not, nor will it permit any
Subsidiary to, make any loans and advances to Modine Korea, any member of the
Modine Holding Consolidated Group or any Domestic Subsidiary that is not a
Guarantor at any time on or after the First Amendment Effective Date, provided that this
provision shall not restrict loans and advances between members of the Modine
Holding Consolidated Group.

    
      
         

      

      
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    Section
6.5        
    Investments and
Acquisitions.

    

    (a)  The Borrower will not,
nor will it permit any Subsidiary to, make or suffer to exist any Investments
(including without limitation, loans and advances to, and other Investments in,
Subsidiaries), or commitments therefor, or to create any Subsidiary or to become
or remain a partner in any partnership or joint venture, or to make any
Acquisition of any Person, except:

    

    (i)      
      Cash Equivalent Investments.

    

    (ii)            (x)
Existing Investments in Subsidiaries but no increase in the amount thereof, and
(y) other Investments described in Schedule 6.5, but no increase in the amount
thereof, as reduced from time to time.

    

    (iii)           Investments
comprised of capital contributions (whether in the form of cash, a note, or
other assets) to a Subsidiary or other special-purpose entity created solely to
engage in a Qualified Receivables Transaction.

    

    (iv)           Rate
Management Transactions permitted by Section 6.20 and guaranties by the Borrower
and its Subsidiaries of such Rate Management Obligations.

    

    (v)           Loans
and advances permitted by Section 6.4.

    

    (b)  The Borrower and its
Subsidiaries may make and have outstanding other Investments, provided that (i)
no Default or Unmatured Default exists at the time such Investment is made or
would be caused thereby and (ii) at no time shall the aggregate outstanding
amount of all such other Investments existing and permitted under this Section
6.5(b) exceed $1,000,000.

    

    Notwithstanding
anything herein to the contrary, the Borrower will not, nor will it permit any
Subsidiary to, make any Investments (including without limitation, loans and
advances to, and other Investments) to Modine Korea, any member of the Modine
Holding Consolidated Group or any Domestic Subsidiary that is not a Guarantor at
any time on or after the First Amendment Effective Date, provided that this
provision shall not restrict Investments between members of the Modine Holding
Consolidated Group.

    

    2.13          Section
6.6 is restated as follows:

    

    Section
6.6          
  Negative
Pledge.  The Borrower will not, nor will it permit any
Subsidiary to, create, incur or suffer to exist any Lien in, of or on any of the
Property of the Borrower or any of its Subsidiaries, except for (a) Permitted
Encumbrances, (b) Liens in favor of the Collateral Agent securing the Secured
Obligations and subject to the Intercreditor Agreement, (c) Liens on up to
$10,000,000 of cash or cash equivalents to secure existing Rate Management
Obligations, (d) Liens in favor of the Agent securing the Obligations, and (e)
Liens on assets of the Modine Holding Consolidated Group securing Indebtedness
owing by the Modine Holding Consolidated Group and permitted under Section
6.16(e).

    

    

    2.14          Reference
in Section 6.7 to "Except for corporate reorganizations permitted by Sections
6.9(a) and 6.9(b)" and reference in Section 6.8 to "except for corporate
reorganizations permitted by Sections 6.9(a) and 6.9(b)" shall be replaced with
"Except for transactions permitted by Section 6.9" and "except for transactions
permitted by Section 6.9", respectively.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

               2.15            
 Sections 6.9(b) and (c) are restated as follows:

    

    (b)           the
foregoing limitation on the sale, lease or other transfer of assets and on the
discontinuation or elimination of a business line or segment shall not
prohibit:

    

    (i)   
        sales of inventory in the
ordinary course of business;

    

    (ii)           sale
or other disposition of Modine Korea, whether by sale of Capital Stock or
assets, and other assets owned by Foreign Subsidiaries related to the
Korean-based vehicular HVAC business;

    

    (iii)          leases,
sales or other dispositions of Property that, together with all other Property
of the Borrower and its Subsidiaries previously leased, sold or disposed of as
permitted by this clause (iii) during the twelve-month period ending with the
month in which any such lease, sale or other disposition occurs, do not
constitute a Substantial Portion of the Property of the Borrower and its
Subsidiaries, provided that, after giving effect to any such lease, sale or
other disposition, no Default or Unmatured Default shall have occurred and be
continuing; and

    

    (iv)          any
transfer of an interest in accounts or notes receivable and related assets
permitted under Section 6.17.

    

    (c)      
     the foregoing limitation on the discontinuation or
elimination of any business line or segment shall not prohibit the liquidation
and dissolution of any Subsidiary or the discontinuation or elimination of any
business line or segment, provided that (i) the Borrower shall have reasonably
determined that such business line or segment being discontinued or eliminated
is a non-core business of the Borrower and its Subsidiaries, (ii) any sale of
assets relating to any discontinuation or elimination of any business line or
segment or any liquidation or dissolution of any Subsidiary shall be subject to
the limitation on the sale, lease or other transfer of assets described in
Section 6.9(b) and the prepayment requirements under Section 2.3(b) and the
other terms of this Agreement, and (iii) after giving effect to any such
liquidation or dissolution or discontinuation or elimination of any business
line or segment, no Default or Unmatured Default shall have occurred and be
continuing or would caused thereby.

    

    2.16         Section
6.10 is restated as follows:

    

    Section
6.10           Use of
Proceeds.  The Borrower will use the proceeds of the Credit
Extensions solely for general corporate purposes.  No portion of the
proceeds of the Credit Extensions will be used by the Borrower, directly or
indirectly, for the purpose, whether immediate, incidental or ultimate, of
purchasing or carrying any “margin stock” (as defined in Regulation U), or for
any purpose in violation of any applicable law or regulation.

    

    2.17         Sections
6.16 (e) is deleted and replaced with the following subsections (e) and
(f):

    

    (e)           Indebtedness,
in addition to Indebtedness permitted pursuant to subsections (a)-(c) above,
owing by the Modine Holding Consolidated Group not to exceed €35,000,000 in
aggregate principal amount outstanding at any time.

    

    (f)   
        Indebtedness, in addition to
Indebtedness permitted pursuant to subsections (a)-(e) above, in an aggregate
amount at any time outstanding not to exceed $10,000,000.

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    2.18         Section
6.16 is further amended by adding following to the end thereof:

    

    Notwithstanding
anything herein to the contrary, the Borrower will not permit or suffer to exist
itself or any of its Subsidiaries (other than Modine Korea) to have any
Contingent Obligation, or any other liability or obligation of any kind, with
respect any Indebtedness or any other obligation or liability of Modine Korea,
except such Contingent Obligation or other liability or obligation existing on
the First Amendment Effective Date and described on Schedule 6.16-2, but no
increase in the amount thereof as reduced from time to time.

    

    2.19         Section
6.18 is restated as follows:

    

    Section
6.18           Financial
Covenants.

    

    (a)  Leverage
Ratio.  The Borrower will not permit the Leverage Ratio,
determined as of the end of each fiscal quarter set forth below, to be greater
than the ratio set forth opposite such fiscal quarter:

    

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                Fiscal Quarter

                              	
                                Maximum

                                Leverage Ratio

                              
	
                                Fiscal
      quarter ending March 31, 2010

                              	
                                7.25
      to 1.0

                              
	
                                Fiscal
      quarter ending June 30, 2010

                              	
                                5.5
      to 1.00

                              
	
                                Fiscal
      quarter September 30, 2010

                              	
                                4.75
      to 1.00

                              
	
                                Fiscal
      quarter ending December 31, 2010

                              	
                                3.75
      to 1.0

                              
	
                                Any
      fiscal quarter ending thereafter

                              	
                                3.50
      to
1.0

                              

                      

                    

                  

                

              

            

          

        

      

    

    

    (b)  Interest Expense Coverage
Ratio.  The Borrower will not permit the Interest Expense
Coverage Ratio, determined as of the end of each fiscal quarter set forth below,
to be less than the ratio set forth opposite such fiscal quarter:

    

    
      
        
          
            
              
                	
                        Fiscal Quarter

                      	
                        Minimum

                        Interest Expense

                        Coverage Ratio

                      
	
                        Fiscal
      quarter ending March 31, 2010

                      	
                        1.50
      to 1.0

                      
	
                        Fiscal
      quarter ending June 30, 2010

                      	
                        2.00
      to 1.00

                      
	
                        Fiscal
      quarter September 30, 2010

                      	
                        2.50
      to 1.00

                      
	
                        Any
      fiscal quarter ending thereafter

                      	
                        3.00
      to
1.0

                      

              

            

          

        

      

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    (c)  Minimum
EBITDA.  The Borrower will not permit the Consolidated Adjusted
EBITDA, determined as of the end of each fiscal quarter set forth below, to be
less than the amount set forth opposite such fiscal quarter:

    

    
      
        
          
            
              
                
                  
                    	
                            Fiscal Quarter

                          	 	
                            Minimum Consolidated

                            Adjusted EBITDA

                          	 
	
                            Fiscal
      quarter ending March 31, 2009, as calculated for the fiscal quarter then
      ending

                          	 	$	-
      25,000,000	 
	
                            Fiscal
      quarter ending June 30, 2009, as calculated for the two consecutive fiscal
      quarters then ending

                          	 	$	-
      22,000,000	 
	
                            Fiscal
      quarter ending September 30, 2009, as calculated for the three consecutive
      fiscal quarters then ending

                          	 	$	-
      14,000,000	 
	
                            Fiscal
      quarter ending December 31, 2009, as calculated for the four consecutive
      fiscal quarters then ending

                          	 	$	1,750,000	 
	
                            Fiscal
      quarter ending March 31, 2010, as calculated for the four consecutive
      fiscal quarters then ending

                          	 	$	35,000,000	 

                  

                

              

            

          

        

      

    

    

    (d)  Capital
Expenditures.  The Borrower will not permit or suffer
Consolidated Capital Expenditures in excess of (i) $30,000,000 for the fiscal
quarter ending March 31, 2009, (ii) $65,000,000 for the fiscal year ending March
31, 2010, or (iii) $70,000,000 for any fiscal year ending thereafter; in each
case in addition to any replacement or rebuilding of any real property or
equipment from the Net Proceeds from any Event of Loss of real property or
equipment as provided in Section 2.3(b).

    

    2.20     
    Sections 6.19(a) is restated as follows:

    

    (a)        
   The Borrower will cause (i) each Subsidiary that delivers a
guarantee, or otherwise incurs a Contingent Obligation, to any Person (other
than to another Subsidiary or the Borrower) in respect of any Material
Indebtedness to concurrently execute and deliver to the Agent a Guaranty with
respect to all Obligations and Rate Management Obligations, (ii) each Domestic
Subsidiary to promptly, and in any event within 30 days when required by this
clause (ii), execute and deliver to the Agent a Guaranty with respect to all
Obligations and Rate Management Obligations, provided that each Domestic
Subsidiary in existence on the First Amendment Effective Date that is not
signing a Guaranty on the First Amendment Effective Date shall not be required
to be a Guarantor so long as it does not qualify as a Significant Subsidiary
(and the Borrower represents that each Domestic Subsidiary in existence on the
First Amendment Effective Date that is not signing a Guaranty on the First
Amendment Effective Date is not a Significant Subsidiary), and (iii) each
Subsidiary of any Foreign Subsidiary Borrower, if any, and any other Foreign
Subsidiary requested by the Agent, to the extent they can legally do so without
incurring a material tax liability and to the extent they are not prohibited by
a restriction permitted under Section 6.25 hereof, to promptly execute and
deliver to the Agent a Guaranty with respect to all Obligations of such Foreign
Subsidiary Borrower.

    

    2.21          The
following new Sections 6.22, 6.23, 6.24, 6.25, 6.26 and 6.27 are added to the
Credit Agreement:

    

    6.22    
     Optional Payments and
Modification of Debt.  The Borrower will not, nor will it
permit any Subsidiary to, (i) make any optional payment, defeasance (whether a
covenant defeasance, legal defeasance or other defeasance), prepayment,
repurchase (including without limitation any offer to repurchase) or other
optional redemption of any 2005 Senior Note Debt or 2006 Senior Note Debt, (ii)
enter into any agreement restricting the ability of the Borrower and its
Subsidiaries to amend or modify any Loan Document, except to the extent
described in the waivers and amendments to Note Purchase Documents being
delivered pursuant to Section 4.2 of the First Amendment, (iii) enter into any
agreement or arrangement requiring any defeasance of any kind of any 2005 Senior
Note Debt or 2006 Senior Note Debt, (iv) pay or agree to pay any fee, interest
or other compensation or consideration (other than as required under the Note
Purchase Documents as in effect on the First Amendment Effective Date) to any
purchaser or other holder of the 2005 Senior Note Debt or 2006 Senior Note Debt,
(v) shorten the maturity or termination date of any loans or other credit
facilities of the Borrower or any Subsidiary under any Note Purchase Document
(other than as required under the waivers and amendments to Note Purchase
Documents being delivered pursuant to Section 4.2 of the First Amendment,
provided that no regularly scheduled principal installment payment shall be due
on or prior to July 18, 2011), (vi) amend or otherwise modify any term or
provision of any Note Purchase Document requiring any prepayment, defeasance or
repurchase of any 2005 Senior Note Debt or 2006 Senior Note Debt as in effect on
the First Amendment Effective Date, or (vii) enter into any agreement or
arrangement requiring any defeasance of any kind of any 2005 Senior Note Debt or
2006 Senior Note Debt except as set forth in or required by the Note Purchase
Documents as in effect on the First Amendment Effective Date.

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    The
Borrower represents and agrees that the only agreements or arrangements
requiring any defeasance (whether a covenant defeasance, legal defeasance or
other defeasance), prepayment, repurchase (including without limitation any
offer to repurchase) or other redemption or payment of any principal of any 2005
Senior Note Debt or 2006 Senior Note Debt on or before July 18, 2011 (other than
upon the acceleration thereof after an event of default or the existing
prepayment required upon a change in control) are the prepayment provisions in
waiver and amendment to 2005 Note Purchase Agreement and the waiver and
amendment to 2006 Note Purchase Agreement and the amended and restated Notes,
each in the form being delivered pursuant to Section 4.2 of the First
Amendment.

    

    6.23          Communications with
Accountants.  The Borrower authorizes the Agent and each Lender
to communicate directly with its independent certified public accountants and
authorizes and shall instruct those accountants and advisors to communicate to
the Agent and each Lender information relating to the Borrower and its
Subsidiaries with respect to the business, results of operations and financial
condition of the Borrower or any of its Subsidiaries.

    

    6.24          Deposit
Accounts.  The Borrower shall, and shall cause each of its
Subsidiaries to, maintain the Agent, a Lender or any of their respective
Affiliates as their sole depository bank, including for the maintenance of all
operating, administrative, cash management, collection activity, and other
deposit accounts for the conduct of their respective businesses, provided
that

    

    (a)  with respect to all
operating, administrative, cash management, collection activity, and other
deposit accounts of the Borrower and the Domestic Subsidiaries, the Borrower
shall have up to 60 days after the First Amendment Effective Date (or such later
date agreed to by the Agent) to comply with the terms of this Section 6.24,
provided that for administrative convenience the Borrower may maintain existing
local deposit accounts at all times thereafter not to exceed $100,000 in
aggregate amount for all such accounts of the Borrower and all Domestic
Subsidiaries;

    

    (b)  with respect to all
operating, administrative, cash management, collection activity, and other
deposit accounts of the Foreign Subsidiaries (other the Modine Holding
Consolidated Group), the Borrower shall have up to 120 days after the First
Amendment Effective Date (or such later date agreed to by the Agent) to comply
with the terms of this Section 6.24, provided that at all times thereafter up to
the Dollar Amount of $5,000,000 in the aggregate for all such Foreign
Subsidiaries may be maintained by such Foreign Subsidiaries in deposit accounts
in the country of their organization that are not with the Agent, a Lender or
any of their respective Affiliates if neither the Agent nor any Lender or any of
their respective Affiliates provides such depositary services in such country
and such amount is required by Borrower's Subsidiaries in such country for their
operations; and

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    (c)  the requirements of this
Section 6.24 shall not apply to the Modine Holding Consolidated
Group.

    

    6.25.         Restrictive
Agreements.  The Borrower will not, and will not permit any of
its Subsidiaries to, directly or indirectly, enter into, incur or permit to
exist any agreement or other arrangement that prohibits, restricts or imposes
any condition upon the ability of any Subsidiary to pay dividends or other
distributions with respect to any shares of its Capital Stock or to make or
repay loans or advances to the Borrower or any Domestic Subsidiary; provided that the
foregoing shall not apply to: (a) restrictions and conditions imposed on the
Modine Holding Consolidated Group in connection with Indebtedness permitted
under Section 6.16(e), (b) restrictions and conditions imposed in connection
with a material economic benefit provided to any Foreign Subsidiary by a
governmental authority, (c) restrictions imposed under the Note Purchase
Documents as in effect on the First Amendment Effective Date, and (d)
restrictions and conditions imposed by law.

    

    6.26          General
Indemnity.           The
Borrower will at all times protect, indemnify and save harmless the Collateral
Agent, each Lender and each of their respective officers, directors, employees,
agents and representatives (referred too herein as the “Indemnitees”) from and
against all liabilities, obligations, claims, judgments, damages, penalties,
fines, assessments, losses, indemnities, contributions, causes of action, costs
and expenses (including, without limitation, the fees and expenses of attorneys,
auditors and consultants) imposed upon or incurred by or asserted against the
Indemnitees on account of (a) any failure of the Borrower or any Subsidiary or
any employee or agent of any thereof to comply with any of the terms, covenants,
obligations or prohibitions of this Agreement or any other Financing Document
(as defined in the Intercreditor Agreement), (b) any breach of any
representation or warranty of the Borrower or any Subsidiary set forth in this
Agreement or in any other Financing Document or any certificate delivered by the
Borrower or any Subsidiary pursuant hereto or thereto, or any claim that any
statement, representation or warranty of the Borrower or any Subsidiary in any
of the foregoing documents contains or contained any untrue or misleading
statement of material fact or omits or omitted to state any material facts
necessary to make the statements made therein not misleading in light of the
circumstances under which they were made, (c) any action, suit, claim,
proceeding or investigation of a judicial, legislative, administrative or
regulatory nature arising from or in connection with the Collateral, including
without limitation (1) the presence, escape, seepage, leakage, discharge,
emission, release, removal or threatened release, or disposal of any Hazardous
Materials and (2) any violation of any law, ordinance or governmental rules or
regulations including without limitation any Environmental Law, (d) any suit,
action, administrative proceeding, enforcement action, or governmental or
private action of any kind whatsoever commenced against the Borrower, any
Subsidiary or any Indemnitee which might adversely affect the validity or
enforceability of this Agreement or any other Financing Document or the
performance by the Borrower or any Subsidiary of any of its obligations
hereunder or thereunder or (e) any loss or damage to property or any injury to
or death of any Person that may be occasioned by any cause whatsoever pertaining
to any Collateral or the use thereof, and shall further indemnify and save
harmless the Indemnitees from and against (1) all amounts paid in settlement of
any litigation commenced or reasonably threatened against any Indemnitee that
falls within the scope of clauses (a) through (e) above, and (2) all expenses
reasonably incurred in the investigation of, preparation for or defense of any
litigation, proceeding or investigation of any nature whatsoever that falls
within the scope of clauses (a) through (e) above, commenced or reasonably
threatened against the Borrower, any Subsidiary or any
Indemnitee.

    6.27          Most Favored Lender
Status.  If the Borrower or any Subsidiary enters into, assumes
or otherwise is or becomes bound or obligated under, or amends, restates or
otherwise modifies, any agreement creating or evidencing any Indebtedness of the
Borrower or any Subsidiary, or any refinancing or extension of all or any
portion thereof (including without limitation all Note Purchase Documents in
existence on the date hereof and as amended or modified from time to time), to
include one or more Additional Covenants or Additional Defaults, the terms of
this Agreement shall, without any further action on the part of the Borrower,
any Subsidiary or any of the Lenders, be deemed to be amended automatically and
immediately to include each Additional Covenant and each Additional Default
contained in such agreement.  The Borrower further covenants to
promptly execute and deliver at its expense (including the fees and expenses of
counsel for the Agent) an amendment to this Agreement in form and substance
satisfactory to the Required Lenders evidencing the amendment of this Agreement
to include such Additional Covenants and Additional Defaults, provided that the
execution and delivery of such amendment shall not be a precondition to the
effectiveness of such amendment as provided for in this Section 6.27, but shall
merely be for the convenience of the parties hereto.”

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    2.22          Section
7.2 is restated as follows:

    

    The
Borrower shall fail to observe or perform any covenant contained in Section
6.1(d), Sections 6.3 through 6.10, inclusive, or Sections 6.16 through 6.22,
inclusive; or

    

    2.23      
   References to "$20,000,000" in Sections 7.5, 7.10 and 7.11 and
in the definition of "Significant Obligations" are each replaced with
"$10,000,000".

    

    2.24         The
following new Section 7.14 is added to the Credit Agreement:

    

    7.14         Any
Collateral Document shall for any reason (other than solely as the result of an
act or omission of the Agent or a Lender) fail to create a valid and perfected
first priority security interest, subject to the Intercreditor Agreement, in any
Collateral purported to be covered thereby, except as permitted by the terms of
this Agreement or any Collateral Document, or, due to any action by the Borrower
or any of its Subsidiaries not consented to by the Required Lenders, any
Collateral Document shall fail to remain in full force or effect or any action
shall be taken by the Borrower or any of its Subsidiaries not consented to by
the Required Lenders to discontinue or to assert the invalidity or
unenforceability of any Collateral Document, or any Borrower or any Guarantor
shall fail to comply with any of the terms or provisions of any Collateral
Document if the failure continues beyond any period of grace provided for in the
applicable Collateral Document.

    

    2.25         Section
9.5 of the Credit Agreement is restated as follows:

    

    9.5           Several Obligations;
Benefits of this Agreement.  The respective obligations of the
Lenders hereunder are several and not joint and no Lender shall be the partner
or agent of any other (except to the extent to which the Agent is authorized to
act as such).  The Obligations of each Borrower are several and not
joint, except to the extent that any Borrower has executed a Guaranty with
respect to the Secured Obligations of another Borrower.  The failure
of any Lender to perform any of its obligations hereunder shall not relieve any
other Lender from any of its obligations hereunder.  This Agreement
shall not be construed so as to confer any right or benefit upon any Person
other than the parties to this Agreement and their respective successors and
assigns, provided, however, that the parties hereto expressly agree that the
Arranger shall enjoy the benefits of the provisions of Sections 9.6, 9.10 and
10.6 to the extent specifically set forth therein and shall have the right to
enforce such provisions on its own behalf and in its own name to the same extent
as if it were a party to this Agreement.

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    2.26         The
following new clauses (d) and (e) are added to the end of Section
9.6:

    

    (d)  Upon the earliest to
occur of (i) Consolidated Adjusted EBITDA, determined as of the end of the
fiscal quarter ending March 31, 2009 and calculated for the fiscal quarter then
ending, being less than -$12,000,000, (ii) Consolidated Adjusted EBITDA,
determined as of the end of the fiscal quarter ending June 30, 2009 and
calculated for the fiscal quarter then ending, being less than $5,000,000, (iii)
Consolidated Adjusted EBITDA, determined as of the end of the fiscal quarter
ending September 30, 2009 and calculated for the fiscal quarter then ending,
being less than $8,000,000, (iv) Consolidated Adjusted EBITDA, determined as of
the end of any fiscal quarter thereafter and calculated for the fiscal quarter
then ending, being less than $15,000,000, or (v) the occurrence of any Default,
then, at the request of the Agent or the Required Lenders, the Borrower agrees
to promptly engage at Borrower's sole cost a financial consultant selected by
the Borrower and reasonably acceptable to the Agent and the Required Lenders
(the “Borrower Financial Advisor”) with a scope of authority, and engaged
pursuant to terms and conditions, in each case reasonably satisfactory to the
Borrower, the Agent and the Required Lenders.  The Borrower shall
provide the Borrower Financial Advisor with full onsite access to its books and
records and the opportunity to discuss the financial condition, performance,
financial statements and other matters regarding the Borrower and its
Subsidiaries with their respective officers, managers, other employees,
directors, independent accountants and financial advisors to permit the Borrower
Financial Advisor to fully investigate any matter that arises during its review
of the financial and other information of the Borrower and its
Subsidiaries.  The Borrower Financial Advisor shall fully share its
work product with the Borrower, the Agent and the Lenders.

    

    (e)  The Borrower agrees that
Agent or its counsel may hire one consulting firm chosen by the Agent to act as
financial advisor (the “Lender Financial Advisor”) to counsel for the Agent and
the Lenders and the Borrower agrees to pay the fees and expenses of the Lender
Financial Advisor, provided that such
fees shall be market reasonable (as reasonably determined by the Agent) and
expenses shall be incurred on a basis consistent with the Borrower’s current
travel and entertainment policy in effect on the First Amendment Effective Date
and disclosed to the Agent.  The Borrower and its Subsidiaries shall
provide the Lender Financial Advisor with reasonable onsite access to their
books and records during normal business hours and the opportunity to discuss
the financial condition, performance, financial statements and other matters
regarding the Borrower and its Subsidiaries with their respective officers,
managers, other employees, directors, independent accountants and financial
advisors to permit the Lender Financial Advisor to fully investigate any matter
that arises during its review of the financial and other information of the
Borrower and its Subsidiaries.  The Lender Financial Advisor shall
have no duty to share its work product with, or accept instructions from, the
Borrower, any Subsidiary or any Person working on their behalf.  If a
Borrower Financial Advisor has been retained and the Agent and the Lenders
thereafter retain a Lender Financial Advisor, the Agent and the Lenders agree
that they will use reasonable efforts to limit any duplicative efforts between
the Borrower Financial Advisor and the Lender Financial Advisor, as determined
by the Required Lenders.

    

    2.27     
   The following new Sections 10.11. 10.12 and 10.13 are added to
the Credit Agreement:

    

    10.11       Execution of Collateral
Documents.  The Lenders hereby empower and authorize the Agent
(in its capacity as Agent or as Collateral Agent) to execute and deliver the
Collateral Documents and all related documents or instruments as shall be
necessary or appropriate to effect the purposes of the Collateral
Documents.  The Lenders further empower and authorize the Agent (in
its capacity as Agent or as Collateral Agent) to execute and deliver on their
behalf the Intercreditor Agreement and all related documents or instruments as
shall be necessary or appropriate to effect the purposes of the Intercreditor
Agreement, provided that the form of the Intercreditor Agreement has been
approved by the Required Lenders, and each Lender shall be bound by the terms
and provisions of the Intercreditor Agreement so executed by the
Agent.

    

    10.12        Collateral
Releases.  The Lenders hereby irrevocably empower and authorize
JPMorgan, in its capacity as Agent or as Collateral Agent, to execute and
deliver on their behalf any agreements, documents or instruments as shall be
necessary or appropriate to effect any releases or subordinations of Liens on
any Collateral (i) which being sold or disposed of if the Borrower certifies to
the Agent that the sale or disposition is made in compliance with the terms of
this Agreement (and the Agent may rely conclusively on any such certificate,
without further inquiry), (ii) owned by or leased to the Borrower or any of its
Subsidiaries which is subject to a purchase money security interest or which is
the subject of a Capitalized Lease, (iii) as required to effect any sale or
other disposition of such Collateral in connection with any exercise of remedies
of the Collateral Agent or the Agent or (iv) which shall otherwise be permitted
by the terms hereof or any other Loan Document.  Except as provided in
the preceding sentence, JPMorgan, in its capacity as Agent or as Collateral
Agent, will not release any Liens on Collateral without the prior written
authorization of the Required Lenders; provided that, JPMorgan, in its capacity
as Agent or as Collateral Agent, may in its discretion, release Liens on
Collateral valued in the aggregate not in excess of $1,000,000 during any
calendar year without the prior written authorization of the
Lenders.  In addition to the foregoing, the Lenders, the Agent and the
Collateral Agent hereby agree that any sale of accounts owed by account debtors
shall be deemed to be released from the Liens in favor of the Collateral Agent
upon sale of such accounts by a Borrower as part of a Qualified Receivables
Transaction.

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    10.13        Collateral;
Reports.  The Agent shall have no obligation whatsoever to any
of the Lenders to assure that the Collateral exists or is owned by the Borrower
or any Subsidiary or is cared for, protected, or insured or has been encumbered,
or that any Liens have been properly or sufficiently or lawfully created,
perfected, protected, or enforced or are entitled to any particular priority, or
to exercise at all or in any particular manner or under any duty of care,
disclosure, or fidelity, or to continue exercising, any of the rights,
authorities, and powers granted or available to the Agent pursuant to any of the
Loan Documents, it being understood and agreed that in respect of the
Collateral, or any act, omission, or event related thereto, the Agent may act in
any manner it may deem appropriate, in its sole discretion given the Agent’s own
interest in the Collateral in its capacity as one of the Lenders and that the
Agent shall have no other duty or liability whatsoever to any Lender as to any
of the foregoing.  Each Lender hereby agrees as follows: (a) such
Lender is deemed to have requested that the Agent furnish such Lender, promptly
after it becomes available, a copy of each report prepared by the Agent or
another Person showing the results of appraisals, field examinations, audits or
other reports pertaining to the Borrower's and its Subsidiaries' assets from
information furnished by or on behalf of the Borrower or its Subsidiaries
prepared by or on behalf of the Agent (the "Supplemental Reports"); (b) such
Lender expressly agrees and acknowledges that JPMorgan, either individually, as
Agent, as Collateral Agent or in any other capacity, (i) makes no representation
or warranty, express or implied, as to the completeness or accuracy of any
Supplemental Report or any of the information contained therein, or (ii) shall
not be liable for any information contained in any Supplemental Report; (c) such
Lender expressly agrees and acknowledges that the Supplemental Reports are not
comprehensive audits or examinations, that the Collateral Agent, the Agent,
JPMorgan, or any other party performing any audit or examination will inspect
only specific information regarding the Borrower and its Subsidiaries and will
rely significantly upon the books and records of the Borrower and is
Subsidiaries, as well as on representations of the personnel of the Borrower and
its Subsidiaries and that JPMorgan, either individually, as Agent, as Collateral
Agent or in any other capacity, undertakes no obligation to update, correct or
supplement the Supplemental Reports; (d) such Lender agrees to keep all
Supplemental Reports confidential and strictly for its internal use, not share
any Supplemental Report with the Borrower or any of its Subsidiaries and not to
distribute any Supplemental Report to any other Person except as otherwise
permitted pursuant to this Agreement; and (e) without limiting the generality of
any other indemnification provision contained in this Agreement, such Lender
agrees (i) that JPMorgan, either individually, as Agent, as Collateral Agent or
in any other capacity, shall not be liable to such Lender or any other Person
receiving a copy of any Supplemental Report for any inaccuracy or omission
contained in or relating to a Supplemental Report, (ii) to conduct its own due
diligence investigation and make credit decisions with respect to the Borrower
and its Subsidiaries based on such documents as such Lender deems appropriate
without any reliance on the Supplemental Reports or on JPMorgan, either
individually, as Agent, as Collateral Agent or in any other capacity, (iii) to
hold JPMorgan, either individually, as Agent, as Collateral Agent or in any
other capacity, and any such other Person preparing a Supplemental Report
harmless from any action the indemnifying Lender may take or conclusion the
indemnifying Lender may reach or draw from any Supplemental Report in connection
with any Credit Extensions that the indemnifying Lender has made or may make to
any Borrower, or the indemnifying Lender’s participation in, or the indemnifying
Lender’s purchase of, any Obligations and (iv) to pay and protect, and
indemnify, defend, and hold JPMorgan, either individually, as Agent, as
Collateral Agent or in any other capacity, and any such other Person preparing a
Supplemental Report harmless from and against, the claims, actions, proceedings,
damages, costs, expenses, and other amounts (including reasonable attorney fees)
incurred by JPMorgan, either individually, as Agent, as Collateral Agent or in
any other capacity, and any such other Person preparing a Supplemental Report as
the direct or indirect result of any third parties who might obtain all or part
of any Supplemental Report through the indemnifying Lender.

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    2.28          Schedules
6.5 and 6.16 to the Credit Agreement are replaced with Schedules 6.5 and 6.16
attached hereto and Schedule 6.16-2 attached hereto is added to the Credit
Agreement as Schedule 6.16-2.

    

    ARTICLE
3.

    REPRESENTATIONS

    

    The Borrower represents and warrants to
the Agent and the Lenders that:

    

    3.1           The
execution, delivery and performance of this Amendment are within its powers,
have been duly authorized by the Borrower and are not in contravention of any
Requirement of Law.  This Amendment is the legal, valid and binding
obligations of the Borrower, enforceable against it in accordance with the terms
thereof, except to the extent the enforcement thereof may be limited by
bankruptcy, insolvency or similar laws affecting the enforcement of creditors'
rights generally.

    

    3.2           After
giving effect to the waiver and amendments herein contained and the waivers and
amendments to Note Purchase Documents being delivered pursuant to Section 4.2
hereof, the representations and warranties contained in the Credit Agreement and
the representations and warranties contained in the other Loan Documents are
true on and as of the date hereof with the same force and effect as if made on
and as of the date hereof, except to the extent any such representation or
warranty is stated to relate solely to an earlier date, in which case such
representation or warranty shall have been true and correct on and as of such
earlier date, and no Default or Unmatured Default exists or has occurred and is
continuing on the date hereof.

    

    3.3           Complete
and correct copies of the waiver and amendment to the 2005 Note Purchase
Agreement, the waiver and amendment to the 2006 Note Purchase Documents, and all
agreements and documents executed in connection therewith have been delivered to
the Lenders and such amendments, waivers and other agreements and documents are
being executed simultaneously herewith, and neither the Borrower nor any
Subsidiary thereof has paid (or promised to pay) any amendment fee or any other
direct or indirect compensation to any Senior Note Holder or any of their
respective Affiliates, attorneys, agents, consultants or other representatives
(other than as set forth in such amendments, waivers and other agreements and
documents) or to any other creditor of the Borrower or any Subsidiary in
connection with the transactions contemplated thereby.

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    ARTICLE
4.

    CONDITIONS
PRECEDENT.

    

    This Amendment shall become effective
as of the date hereof, provided that each of the following has been
satisfied:

    

    4.1           This
Amendment shall be signed by the Borrower, the Agent and the Required
Lenders.

    

    4.2           The
Lenders shall have received an amendment and waiver to the 2005 Note Purchase
Documents, an amendment and waiver to the 2006 Note Purchase Note Documents and
all agreements and documents executed in connection therewith, and all such
amendments and waivers and other agreements and documents shall be executed
simultaneously herewith and shall be satisfactory to the Required
Lenders.

    

    4.3           The
Intercreditor Agreement shall be signed by all parties thereto.

    

    4.4           Other
than such Collateral Documents permitted to be delivered on a post closing basis
under Section 2.27 of the Credit Agreement or otherwise agreed to by the Agent,
all Guaranties and Collateral Documents required by the Agent or the Required
Lenders shall have been duly executed by the Borrower and each applicable
Subsidiary, together with any documents, agreements, instruments, filings and
other items related thereto as reasonably required by the Agent or the Required
Lenders to create a valid, attached, perfected, first priority Lien in favor of
the Collateral Agent with respect to the Collateral covered by the Collateral
Documents.

    

    4.5           The
Borrower shall have delivered a certificate of an Authorized Officer (i)
attaching a copy of the January 2009 Financial Forecasts, and (ii) certifying
that the January 2009 Financial Forecasts have been prepared by the Borrower on
the basis of assumptions which the Borrower reasonably believes were reasonable
when made in light of the historical performance of the Borrower and its
Subsidiaries and reasonably foreseeable business conditions, and that no facts
are known to the Borrower at the date thereof which, if reflected in the January
2009 Financial Forecasts, would result in a material adverse change in the
assets, liabilities, results of operations or cash flows reflected
therein.

    

    4.6           The
Borrower shall have provided all other due diligence materials requested by the
Agent or the Required Lenders.

    

    4.7           The
Agent shall have received Lien searches in respect of the Borrower and its
Subsidiaries in form and substance satisfactory to the Agent.

    

    4.8           The
Borrowers and the Guarantors shall have executed and delivered such other
agreements and instruments, and satisfied such other conditions in connection
with this Amendment as required by the Agent, including but not limited to
resolutions, certificates, financial statements and projections and opinions of
counsel acceptable to the Agent, the providing of the cash collateral for Rate
Management Obligations (and all documents required in connection therewith) and
the payment of such fees required in connection herewith.

    

    ARTICLE
5.

    MISCELLANEOUS.

    

    5.1           References
in the Loan Documents to the Credit Agreement shall be deemed to be references
to the Credit Agreement as amended hereby and as further amended from time to
time.  This Agreement is a Loan Document.  Terms used but
not defined herein shall have the respective meanings ascribed thereto in the
Credit Agreement.  This Agreement is a Loan Document.

    

    5.2           Except
as expressly amended hereby, the Borrower agrees that the Loan Documents are
ratified and confirmed and shall remain in full force and effect and that it has
no set off, counterclaim, defense or other claim or dispute with respect to any
of the foregoing.

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    5.3           The
Borrower represents and warrants that it is not aware of any claims or causes of
action against the Agent, any Lender or any of their respective affiliates,
successors or assigns, and that it has no defenses, offsets or counterclaims
with respect to the Obligations.  Notwithstanding this representation
and as further consideration for the agreements and understandings herein, the
Borrower, on behalf of itself and its Subsidiaries, employees, agents,
executors, heirs, successors and assigns (the "Releasing Parties"), hereby
releases the Agent, each Lender and their respective predecessors, officers,
directors, employees, agents, attorneys, affiliates, subsidiaries, successors
and assigns (the "Released Parties"), from any liability, claim, right or cause
of action which now exists or hereafter arises as a result of acts, omissions or
events occurring on or prior to the date hereof, whether known or unknown,
including but not limited to claims arising from or in any way related to this
Agreement, the other Loan Documents, all transactions relating to this Agreement
or any of the other Loan Documents or the business relationship among, or any
other transactions or dealings among the Releasing Parties or any of them and
the Released Parties or any of them.

    

    5.4           The
Borrower acknowledges and agrees that each of the Agent and the Lenders has
fully performed all of its obligations under all Loan Documents, and that all
actions taken by the Agent and the Lenders are reasonable and appropriate under
the circumstances and within their rights under the Loan
Documents.  The actions of each of the Agent and the Lenders taken
pursuant to this Agreement and the documents referred to herein are in
furtherance of their efforts as secured lenders seeking to collect the
obligations owed to them.  Nothing contained in this Agreement shall
be deemed to create a partnership, joint venture or agency relationship of any
nature between the Borrower, its Subsidiaries, the Agent and the
Lenders.  The Borrowers, its Subsidiaries, the Agent and the Lenders
agree that notwithstanding the provisions of this Agreement, each of the
Borrowers and its Subsidiaries remain in control of their respective business
operations and determine the business plans (including employment, management
and operating directions) for its business.

    

    5.5           This
Agreement may be signed upon any number of counterparts with the same effect as
if the signatures thereto and hereto were upon the same instrument and
signatures sent by facsimile or electronic mail message shall be enforceable as
originals.

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties signing this Amendment have caused this Amendment
to be executed, delivered and effective as of the date first above written
..

    

    
      
        
          
            
              
                
                  
                    
                      	 
      	
                              MODINE
      MANUFACTURING COMPANY

                            
	 	 
	 	 
	 
      	
                              By:

                            	
                              /s/ Bradley C.
Richardson

                            
	 
      	
                              Title:

                            	
                              Executive
      Vice President – Corporate Strategy & Chief Financial
      Officer

                            
	 
      	 
      	 
      
	 
      	
                              JPMORGAN CHASE BANK,
      N.A., as the Agent, as the Swing Line Lender, as the LC Issuer and
      as a Lender

                            
	 	 
	 
      	
                              By:

                            	
                              /s/ Brian L. Grossman

                            
	 
      	 
      	 
      
	 
      	
                              Title:

                            	
                              Senior
      Vice President

                            
	 
      	 
      	 
      
	 
      	
                              BANK OF AMERICA, N.A.,
      as a Documentation Agent and as a Lender

                            
	 	 
	 
      	
                              By:

                            	
                              /s/ Steven K. Kessler

                            
	 
      	 
      	 
      
	 
      	
                              Title:

                            	
                              Senior
      Vice President

                            
	 
      	 
      	 
      
	 
      	
                              M&I MARSHALL & ILSLEY
      BANK, as a Documentation Agent and as a Lender

                            
	 	 
	 
      	
                              By:

                            	
                              /s/ Gina A. Peter

                            
	 
      	 
      	 
      
	 
      	
                              Title:

                            	
                              Senior
      Vice President

                            
	 
      	 
      	 
      
	 
      	
                              By:

                            	
                              /s/ James R. Miller

                            
	 
      	 
      	 
      
	 
      	
                              Title:

                            	
                              Senior
      Vice President

                            
	 
      	 
      	 
      
	 
      	
                              WELLS FARGO BANK, N.A.,
      as a Documentation Agent and as a Lender

                            
	 	 
	 
      	
                              By:

                            	
                              /s/ Jennifer Clack

                            
	 
      	 
      	 
      
	 
      	
                              Title:

                            	
                              Vice
      President/Principal

                            

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                	 
      	
                        DRESDNER BANK AG, as a
      Lender

                      
	 	 
	 
      	
                        By:

                      	
                        /s/ Ralf Mulik

                      
	 
      	 
      	 
      
	 
      	
                        Title:

                      	
                        Director

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	
                        /s/ Ekkehard Albrecht

                      
	 
      	 
      	 
      
	 
      	
                        Title:

                      	
                        Director

                      
	 
      	 
      	 
      
	 
      	
                        U.S. BANK, NATIONAL
      ASSOCIATION, as a Lender

                      
	 	 
	 
      	
                        By:

                      	
                        /s/ Caroline V. Krider

                      
	 
      	 
      	 
      
	 
      	
                        Title:

                      	
                        Vice
      President and Senior Lender

                      
	 
      	 
      	 
      
	 
      	
                        COMERICA BANK, as a
      Lender

                      
	 	 
	 
      	
                        By:

                      	
                        /s/ Heather A. Whiting

                      
	 
      	 
      	 
      
	 
      	
                        Title:

                      	
                        Vice
      President

                      

              

            

          

        

      

    

     

     

    29ex10_2.htm

    
      

    

    Exhibit
10.2

    Execution
Copy

    

    WAIVER
AND SECOND AMENDMENT TO NOTE PURCHASE AGREEMENT

    (2006)

     

    This
Waiver and Second Amendment dated as of February 17, 2009 (this “Second Amendment”) to the Note
Purchase Agreement dated as of December 7, 2006 as amended by the First
Amendment thereto dated February 1, 2008 (the “Note Purchase Agreement”) is
between Modine Manufacturing Company, a Wisconsin corporation (the “Company”), and each of the
institutions which is a signatory to this Second Amendment (collectively, the
“Noteholders”).

     

    RECITALS:

     

    A.    
       The Company and the Noteholders are
parties to the Note Purchase Agreement pursuant to which the Company issued the
$50,000,000 5.68% Senior Notes, Series A, due December 7, 2017 and the
$25,000,000 5.68% Senior Notes, Series B, due December 7, 2018 (collectively,
the “Notes”).

     

    B.       
     The Company has advised the Noteholders that an
Event of Default has occurred under the Note Purchase Agreement  due
to a breach of Sections 10.1 and 10.3 of the Note Purchase Agreement for the
period of four consecutive fiscal quarters ended December 31, 2008 (the “Existing Events of
Default”).

     

    C.     
       The Company has requested that the
Noteholders waive the Existing Events of Default.  The Company has
further requested that the Noteholders agree to certain amendments to the Note
Purchase Agreement as set forth below.

     

    D.      
      Subject to the terms and conditions set
forth herein, the Noteholders are willing to waive the Existing Events of
Default and amend the Note Purchase Agreement in the respects, but only in the
respects, set forth in this Second Amendment.

     

    E.    
         Capitalized terms used herein
shall have the respective meanings ascribed thereto in the Note Purchase
Agreement, as amended hereby, unless herein defined or the context shall
otherwise require.

     

    F.      
       All requirements of law have been
fully complied with and all other acts and things necessary to make this Second
Amendment a valid, legal and binding instrument according to its terms for the
purposes herein expressed have been done or performed.

     

    NOW, THEREFORE, in
consideration of good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Company and the Noteholders do hereby agree
as follows:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              SECTION
      1.

            	
              WAIVER
      AND AMENDMENTS.

            

    

     

    Effective
as of the Effective Date (as defined in Section 4 hereof), the Company and the
Noteholders agree that the Note Purchase Agreement and the Notes are amended as
follows:

     

    1.1     
     Each reference in the Note Purchase Agreement to
“5.68%” on the cover page, in the table of contents, in document headers, in
Section 1, in the Purchaser Schedule and in the title of each of the outstanding
Notes is hereby deleted.  The reference to “at the rate of (a) 5.68%
per annum” in the first paragraph of each of the outstanding Notes in replaced
with “at (a) the Applicable Rate per annum”.  The reference to “7.68%”
in the in the first paragraph of each of the outstanding Notes in replaced with
“the Applicable Rate plus 2.00%”.

     

    1.2      
    Each reference in the Note Purchase Agreement to “2018”
on the cover page, in the table of contents, in document headers, in Section 1,
in the Purchaser Schedule and in each of the outstanding Series B Notes is
hereby replaced with “2017”.

     

    1.3         
  Section 2.2 of the Note Purchase Agreement is amended and restated
as follows:

     

    “Section
2.2           Security
for the Notes; Subsidiary Guaranties.

     

    (a)           The
payment by the Company of all amounts due with respect to the Notes and the
performance by the Company of its obligations under this Agreement will be
absolutely and unconditionally guaranteed by each Domestic Subsidiary of the
Company pursuant to the Subsidiary Guaranty, to the extent such Guaranty is
required pursuant to Section
9.8 hereof.

     

    (b)           The
obligations of the Company under this Agreement and the Notes will be secured
pursuant to the Collateral Documents and in accordance with Section 9.9
hereof.

     

    (c)           The
enforcement of the rights and benefits in respect of the Collateral Documents
and the allocation of proceeds thereof and of the Subsidiary Guaranty shall be
subject to the Intercreditor  Agreement.”

     

    1.4           Section
5.3 of the Note Purchase Agreement is amended by amending and restating the last
sentence thereof as follows:

     

    “Since
March 31, 2008, except as reflected in or contemplated by the January 2009
Financial Forecast, there has been no change in the financial condition,
operations, business or properties of the Company or any Subsidiary except
changes that individually or in the aggregate would not reasonably be expected
to have a Material Adverse Effect.”

     

    1.5           New
Section 5.21 and 5.22 are added to the Note Purchase Agreement as
follows:

     

    “Section
5.21.           Credit
Agreement Debt. As of the Second Amendment
Effective Date, the outstanding principal balance of the Debt outstanding under
the Credit Agreement is $94,000,000 and all Loan Documents (as defined in the
Credit Agreement as in effect on the date hereof) (including the amendment and
other agreements and documents executed on or about the date hereof) have been
delivered to the holders prior to or concurrently with the Second Amendment
Effective Date.  After giving effect to the amendment to the Credit
Agreement referenced in Section 4(c) of the Second Amendment, there is no event
of default or event or condition which would become an event of default with
notice or lapse of time or both, under the Credit Agreement or any other Loan
Document (as defined in the Credit Agreement as in effect on the date
hereof).

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

    Section
5.22.        
    Projections. The January 2009 Financial Forecasts
were prepared by or on behalf of the Company in good faith and on the basis of
the assumptions stated therein and such assumptions were believed by the Company
to be reasonable at the time prepared.  No facts are known to the
Company as of the Second Amendment Effective Date which, if reflected in such
January 2009 Financial Forecasts, would result in a material adverse change in
the assets, liabilities, results of operations or cash flows reflected
therein.”

     

    1.6           Section
7.1(a) of the Note Purchase Agreement is amended by replacing the reference to
“60 days” with “45 days”.

     

    1.7           Section
7.1(b) of the Note Purchase Agreement is amended by replacing the reference to
“120 days” with “90 days”.

     

    1.8           Section
7.1(b) of the Note Purchase Agreement is further amended by adding, after the
words “accompanied by an opinion thereon”, the following parenthetical
phrase:

     

    “(without
a “going concern” or like qualification or exception (other than for the fiscal
year ending March 31, 2009) and without any qualification or exception as to the
scope of the audit on which such opinion is based)”

     

    1.9           Section
7.1 of the Note Purchase Agreement is amended by deleting clause (g) thereof and
adding the following in its place:

     

    “(g)         if
requested by the Required Holders, within 20 days after the end of each month
(commencing with the first month ending at least 15 days after such request),
for itself and its Subsidiaries, consolidated and consolidating unaudited
balance sheets as at the close of each such period and consolidated and
consolidating profit and loss statements and a statement of cash flows for the
period from the beginning of such fiscal year to the end of such month, all
certified by a Senior Financial Officer;

     

    (h)           promptly
after the delivery thereof, copies of any reports by the Company Financial
Advisor delivered to the Company, the board of directors of the Company or any
committee thereof at any time;

    

    (i)         
  promptly upon the request of the Required Holders, an appraisal of
the inventory of the Company and its Domestic Subsidiaries, at the expense of
the Company, by a valuation or appraisal firm reasonably satisfactory to the
Required Holders, provided that, if no Default or Event of Default has occurred,
not more than one such appraisal per fiscal year of the Company shall be at the
expense of the Company;

    
      
         

      

      
        - 3
-

        
          

        

      

      
         

      

    

    (j)            promptly
upon the request of the Required Holders, a consolidated thirteen week rolling
cash flow statement of the Company and its Subsidiaries, to be updated by the
Company weekly thereafter, and in form and detail acceptable to the Required
Holders;

    

    (k)      
     if requested by the Required Holders, within 20
days after the end of each month (commencing with the first month ending at
least 15 days after such request), a schedule detailing the inventory of the
Company and its Subsidiaries, a schedule and aging of the accounts receivable
and payable of the Company and its Subsidiaries and a schedule of daily cash
balances of the Company and its Subsidiaries, each in form and detail
satisfactory to the Required Holders and with such supplemental information
relating thereto as requested by the Required Holders;

    

    (l)       
    promptly upon receipt thereof, any notice received from
the Bank Agent, any Bank or other agent or trustee therefor and any notice that
the Company or any of its Subsidiaries is subject to any investigation of any
kind by any governmental entity or stock exchange;

    

    (m)           immediately
after becoming aware thereof, notice of any pending or threatened strike, work
stoppage, unfair labor practice claim, or other labor dispute affecting the
Company or any of its Subsidiaries in a manner;

     

    (n)           with
reasonable promptness, such other data and information relating to the business,
operations, affairs, financial condition, assets or properties of the Company or
any of its Subsidiaries (including, but without limitation, actual copies of the
Company’s Form 10-Q and Form 10-K) or relating to the ability of the Company to
perform its obligations hereunder and under the Notes as from time to time may
be reasonably requested by any such holder of Notes.

     

    Notwithstanding
the above, if any report or other information required under this Section 7.1 is
due on a day that is not a Business Day, then such report or other information
shall be required to be delivered on the first day that is a Business Day after
such day.”

    

    1.10          Clause
(a) of Section 7.2 of the Note Purchase Agreement is amended by replacing the
reference therein to “Section 10.1 through Section 10.5” with “Section 10.1
through Section 10.5, Sections 10.11, 10.12, 10.14 and 10.15”.

     

    1.11          Section
8.1 of the Note Purchase Agreement is amended and restated in its entirety as
follows:

     

    “Section
8.1.        
     Required Prepayments.

     

    (a)          
Scheduled Prepayment of the
Series A Notes. On March 7, June 7, September 7 and December 7 of each
year beginning with March 7, 2014 and ending with September 7, 2017, the Company
will prepay $3,125,000 principal amount (or such lesser principal amount as
shall then be outstanding) of the Series A Notes at par and without payment of
the Make-Whole Amount or any premium, provided any partial
prepayment of the Series A Notes pursuant to Section 8.1(c) or Section 8.2 shall be applied
in satisfaction of the required payments of principal thereof (including the
required payment of principal due upon the maturity thereof) becoming due under
this Section 8.1(a) in
the inverse order of their scheduled due dates and provided further that that
upon any prepayment or purchase of the Series A Notes pursuant to Section 8.5 or 8.7 the principal amount of
each required prepayment of the Series A Notes becoming due under this Section 8.1(a) on and after
the date of such prepayment or purchase shall be reduced in the same proportion
as the aggregate unpaid principal amount of the Series A Notes is reduced as a
result of such prepayment or purchase. The remaining outstanding principal
amount of the Series A Notes, together with any accrued and unpaid interest
therein, shall become due on December 7, 2017, the maturity date of the Series A
Notes.

    
      
         

      

      
        - 4
-

        
          

        

      

      
         

      

    

    (b)          
Scheduled Prepayment of the
Series B Notes. On March 7, June 7, September 7 and December 7 of each
year beginning with March 7, 2014 and ending with September 7, 2017, the Company
will prepay $1,562,500 principal amount (or such lesser principal amount as
shall then be outstanding) of the Series B Notes at par and without payment of
the Make-Whole Amount or any premium, provided any partial
prepayment of the Series B Notes pursuant to Section 8.1(c) or Section 8.2 shall be applied
in satisfaction of the required payments of principal thereof (including the
required payment of principal due upon the maturity thereof) becoming due under
this Section 8.1(b) in
the inverse order of their scheduled due dates and provided further that that
upon any prepayment or purchase of the Series A Notes pursuant to Section 8.5 or 8.7 the principal amount of
each required prepayment of the Series B Notes becoming due under this Section 8.1(b) on and after
the date of such prepayment or purchase shall be reduced in the same proportion
as the aggregate unpaid principal amount of the Series B Notes is reduced as a
result of such prepayment or purchase.  The remaining outstanding
principal amount of the Series B Notes, together with any accrued and unpaid
interest therein, shall become due on December 7, 2017, the maturity date of the
Series B Notes.

     

    (c)           Required Prepayment Pursuant to
Intercreditor Agreement.  If any amounts
are to be applied to the principal of the Notes on any date pursuant to the
terms of the Intercreditor Agreement, such principal amount of the Notes,
together with interest thereon to such date and together with the Make-Whole
Amount, if any, with respect to each Note, shall be due and payable on such
date.”

     

    1.12           Section
8.2 of the Note Purchase Agreement is amended by adding the following paragraph
at the end thereof as follows:

     

    “Notwithstanding
the foregoing provisions of this Section 8.2, the Company shall
not at any time make an optional prepayment of the Series A Notes or the Series
B Notes unless either (1) such prepayment is in an amount equal to all of the
outstanding principal amount of the Series A Notes and the Series B Notes,
together with interest accrued thereon to the date of prepayment, and the
Make-Whole Amount determined for the prepayment date with respect to such
principal amount, and prior to or concurrently with such prepayment the
Intercreditor Agreement is terminated or (2) prior to such prepayment, the
Intercreditor Agreement shall have been amended in form and substance
satisfactory to the holders, and such amendment shall be in full force and
effect.”

    
      
         

      

      
        - 5
-

        
          

        

      

      
         

      

    

    1.13          Section
8.3 of the Note Purchase Agreement is amended and restated in its entirety as
follows:

     

    “Section
8.3.     
       Allocation of Partial
Prepayments.  In the case of each partial prepayment of the
Notes pursuant to Section
8.1(c), the principal amount of the Notes to be prepaid shall be
allocated among each series of the Notes at the time outstanding in proportion,
as nearly as practicable, to the respective aggregate unpaid principal amounts
of all the Notes not theretofore called for prepayment.  In the case
of each partial prepayment of the Notes of either series pursuant to Section 8.1 or Section 8.2, the principal
amount of the Notes of such series to be prepaid shall be allocated among all of
the Notes of such series at the time outstanding in proportion, as nearly as
practicable, to the respective unpaid principal amounts thereof not theretofore
called for prepayment.  All partial prepayments made pursuant to Section 8.7 shall be applied
only to the Notes of the holders who have elected to participate in such
prepayment.”

     

    1.14          Section
8.6 of the Note Purchase Agreement is amended by amending the following defined
term therein in its entirety as follows:

     

    “Remaining Scheduled Payments”
means, with respect to the Called Principal of any Note, all payments of
such Called Principal and interest thereon that would be due after the
Settlement Date with respect to such Called Principal if no payment of such
Called Principal were made prior to its scheduled due date; provided that if such
Settlement Date is not a date on which interest payments are due to be made
under the terms of the Notes, then the amount of the next succeeding scheduled
interest payment will be reduced by the amount of interest accrued to such
Settlement Date and required to be paid on such Settlement Date pursuant to
Section 8.1(c), Section
8.2 or Section
12.1; provided further that, for the purposes of calculating “Remaining
Schedule Payments” the interest rate shall be deemed to be (a) when an Default
or Event of Default has occurred and is continuing, 10.75% and (b) when no
Default or Event of Default has occurred and is continuing, (i) during a Credit
Rating Adjustment Period, 8.25% and (ii) at all other times, 5.68%.

     

    1.15          Section
8.6 of the Note Purchase Agreement is further amended by replacing the
references to “Section 8.2” in the definitions of “Called Principal” and
“Settlement Date” with “Section 8.1(c) or Section 8.2”.

     

    1.16          Section
8.8 of the Note Purchase Agreement is hereby deleted.

     

    1.17           Section
9.6 of the Note Purchase Agreement is amended and restated in its entirety as
follows:

     

    “Section
9.6.        
    Notes to Rank Pari
Passu.  The Notes and all other obligations under this
Agreement of the Company are and at all times shall rank at least pari passu in right of
payment with all other present and future Secured Obligations.

    
      
         

      

      
        - 6
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    1.18          Section
9.8 of the Note Purchase Agreement is amended and restated in its entirety as
follows:

     

    “Section
9.8         
    Guaranty by Subsidiaries.

     

    (a)           (i)
The Company will cause each Domestic Subsidiary which is not a party to a
Subsidiary Guaranty to execute and deliver to the holders a Subsidiary Guaranty,
or a joinder agreement in respect thereof, provided that each
Domestic Subsidiary in existence on the Second Amendment Effective Date that is
not signing a Subsidiary Guaranty on the Second Amendment Effective Date shall not be required to
be a Subsidiary
Guarantor so long as (and only for so long as) it does not qualify as a
Significant Subsidiary (and the Company represents that each Domestic Subsidiary
in existence on the Second Amendment Effective Date that is not signing a
Subsidiary Guaranty on the Second  Amendment Effective Date is not a
Significant Subsidiary).  (ii) Notwithstanding the foregoing, each
Domestic Subsidiary that is a borrower, guarantor or otherwise an obligor of any
obligations of the Company or any Subsidiary under the Credit Agreement or the
2005 Note Agreement shall, on or prior to the date when such Domestic Subsidiary
becomes an obligor under the Credit Agreement or the 2005 Note Agreement, become
a Subsidiary Guarantor hereunder and the Company shall cause such Domestic
Subsidiary to (1) deliver such Subsidiary Guaranty, or joinder thereto, together
with such other documents, opinions and information as the Required Holders
reasonably may require regarding such Subsidiary and the enforceability of such
Subsidiary Guaranty and (2) comply with the provisions of Section 9.9.

     

    (b)           The
Company shall cause each Domestic Subsidiary required to become a Subsidiary
Guarantor under Section
9.8(a)(i) to execute and deliver to each of the holders the documents
required under Section
9.8(a)(i) within 30 days of the date such Domestic Subsidiary becomes
subject thereto, together with such other documents, opinions and information as
the Required Holders reasonably may require regarding such Subsidiary and the
enforceability of such Subsidiary Guaranty.”

     

    1.19           New
Sections 9.9, 9.10, 9.11 and 9.12 are added to the Note Purchase Agreement as
follows:

     

    “Section
9.9.           Collateral Security; Further
Assurances.

     

    (a)  To
secure the payment when due of the Secured Obligations (subject to the
Intercreditor Agreement), the Company shall execute and deliver, or cause to be
executed and delivered, to the Collateral  Agent, Collateral Documents
granting or providing for the following:

     

    (i)           Security
Agreements granting a first priority, enforceable Lien and security interest,
subject to the Liens permitted by this Agreement and subject to the sharing
provisions to be contained in the Intercreditor Agreement, on all present and
future accounts, chattel paper, commercial tort claims, deposit accounts,
documents, farm products, fixtures, chattel paper, equipment, general
intangibles, goods, instruments, inventory, investment property,
letter-of-credit rights (as those terms are defined in the Illinois Uniform
Commercial Code) and all other personal property of the Company and of each
Subsidiary Guarantor, subject to any exclusions described in the Intercreditor
Agreement or approved by the Required Holders.  Notwithstanding the
foregoing, with respect to Liens granted by the Company or any Subsidiary
Guarantor on the Equity Interests of any Foreign Subsidiary, such Lien shall not
exceed 65% (or such greater percentage that, due to a change in an applicable
law after the date hereof, (1) could not reasonably be expected to cause the
undistributed earnings of such Foreign Subsidiary as determined for U.S. federal
income tax purposes to be treated as a deemed dividend to such Foreign
Subsidiary's U.S. parent and (2) could not reasonably be expected to cause any
material adverse tax consequences) of the issued and outstanding Equity
Interests entitled to vote (within the meaning of Treas. Reg. Section
1.956-2(c)(2)) and 100% of the issued and outstanding Equity Interests not
entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) in
each Foreign Subsidiary directly owned by the Company or any Subsidiary
Guarantor.  Notwithstanding the foregoing, at any time after a Default
or Event of Default has occurred or if the Required Holders determine that the
Company will not incur a material tax liability as result of such greater
pledge, the Company shall, upon the request of the Required Holders, have the
balance of the Equity Interests of its Foreign Subsidiaries pledged to the
Collateral Agent to secure, subject to the Intercreditor Agreement, the Secured
Obligations.

    
      
         

      

      
        - 7
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    (ii)           Mortgages
granting a Lien on all present and future real property of the Company and of
each Subsidiary Guarantor to the extent such Liens are required by or on behalf
of any holder of the Notes, any holder of the Notes (as defined in the 2005 Note
Purchase Agreement), the Bank Agent, or any Bank.

     

    (iii)
 Any other property or assets of the Company and its Domestic Subsidiaries
required to be included in the “Collateral” under the Credit Agreement, the 2005
Note Purchase Agreement.

     

    (b)           On
or before the Second Amendment Effective Date (or April 30, 2009 in the case of
Collateral Documents relating to the Collateral described in Section 9.9(a)(ii) or such
later date agreed to by the Required Holders, provided that the Company shall
use commercially reasonable efforts to complete such Collateral Documents as
soon as practical), the Company shall cause all Collateral Documents as
reasonably requested by the Required Holders to be, in each case duly executed
and delivered on behalf of the Company and the Subsidiary Guarantors, as the
case may be, granting to the Collateral Agent for the benefit of the Secured
Parties the support specified in Section 9.9 of this Agreement,
together with: (u) such resolutions, certificates and opinions of counsel as
reasonably requested by the Required Holders; (v) the recordation, filing and
other action (including payment of any applicable taxes or fees) in such
jurisdictions as the Required Holders may deem necessary or appropriate with
respect to the Collateral Documents, including the filing of financing
statements, Mortgages and other filings which the Required Holders may deem
necessary or appropriate to create, preserve or perfect the liens, security
interests and other rights intended to be granted to the Collateral Agent
thereunder, together with Uniform Commercial Code record searches and other Lien
searches in such offices as the Required Holders may request; (w) evidence that
the casualty and other insurance required pursuant to the Transaction Documents
is in full force and effect; (x) originals of all instruments and certificates
representing all of the outstanding shares of capital stock and other securities
and instruments to be pledged thereunder, with appropriate stock powers,
endorsements and other powers duly executed in blank; (y) such other evidence
that Liens creating a first priority security interest, subject to the
Intercreditor Agreement, in the Collateral shall have been created and perfected
as requested by the Required Holders; and (z) the satisfaction of all other
conditions in connection with the Collateral and the Collateral Documents as
reasonably requested by any holder, including without limitation all opinions of
counsel, title work, surveys, environmental reports and other documents and
requirements requested by any holder of the Notes.

    
      
         

      

      
        - 8
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    (c)           The
Company agrees that it will promptly notify the holders of the Notes of the
formation, acquisition or existence of any Domestic Subsidiary that has not
executed a Subsidiary Guaranty and Collateral Documents or the acquisition of
any assets on which a Lien is required to be granted and that is not covered by
existing Collateral Documents.  The Company agrees that it will
promptly execute and deliver, and cause each Subsidiary Guarantor to execute and
deliver, promptly upon the request of the Collateral Agent or the Required
Holders, such additional Collateral Documents, Subsidiary Guaranties and other
agreements, documents and instruments, each in form and substance satisfactory
to the Required Holders, sufficient to grant the Subsidiary Guaranties and Liens
contemplated by this Agreement and the Collateral Documents.  The
Company shall deliver, and cause each Subsidiary Guarantor to deliver, to the
Collateral Agent all original instruments payable to it with any endorsements
thereto required by the Required Holders.  Additionally, the Company
shall execute and deliver, and cause each Subsidiary Guarantor to execute and
deliver, promptly upon the request of the Collateral Agent or the Required
Holders, such certificates, legal opinions, lien searches, organizational and
other charter documents, resolutions and other documents and agreements as the
Collateral Agent or the Required Holders may reasonably request in connection
therewith.  The Company shall use its best efforts to cause each
lessor of real property to it or any Subsidiary where any material Collateral is
located to execute and deliver to the Collateral Agent an agreement in form and
substance reasonably acceptable to the Required Holders duly executed on behalf
of such lessor waiving any distraint, lien and similar rights with respect to
any property subject to the Collateral Documents and agreeing to permit the
Collateral Agent to enter such premises in connection therewith.  The
Company shall execute and deliver, and cause each Subsidiary Guarantor to
execute and deliver, promptly upon the reasonable request of the Required
Holders, such agreements and instruments evidencing any intercompany loans or
other advances among the Company and its Subsidiaries, or any of them, and all
such intercompany loans or other advances shall be, and are hereby made,
subordinate and junior to the Secured Obligations and no payments may be made on
such intercompany loans or other advances upon and during the continuance of a
Default or Event of Default unless otherwise agreed to by the Required
Holders.

    
      
         

      

      
        - 9
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    Section
9.10         
    General
Indemnity.           The
Company will at all times protect, indemnify and save harmless the Collateral
Agent, each holder and each of their respective officers, directors, employees,
agents and representatives (referred too herein as the “Indemnitees”) from and
against all liabilities, obligations, claims, judgments, damages, penalties,
fines, assessments, losses, indemnities, contributions, causes of action, costs
and expenses (including, without limitation, the fees and expenses of attorneys,
auditors and consultants) imposed upon or incurred by or asserted against the
Indemnitees on account of (a) any failure of the Company or any Subsidiary or
any employee or agent of any thereof to comply with any of the terms, covenants,
obligations or prohibitions of this Agreement or any other Transaction Document,
(b) any breach of any representation or warranty of the Company or any
Subsidiary set forth in this Agreement or in any other Transaction Document or
any certificate delivered by the Company or any Subsidiary pursuant hereto or
thereto, or any claim that any statement, representation or warranty of the
Company or any Subsidiary in any of the foregoing documents contains or
contained any untrue or misleading statement of material fact or omits or
omitted to state any material facts necessary to make the statements made
therein not misleading in light of the circumstances under which they were made,
(c) any action, suit, claim, proceeding or investigation of a judicial,
legislative, administrative or regulatory nature arising from or in connection
with the Collateral, including without limitation (1) the presence, escape,
seepage, leakage, discharge, emission, release, removal or threatened release,
or disposal of any Hazardous Materials and (2) any violation of any law,
ordinance or governmental rules or regulations including without limitation any
Environmental Law, (d) any suit, action, administrative proceeding, enforcement
action, or governmental or private action of any kind whatsoever commenced
against the Company, any Subsidiary or any Indemnitee which might adversely
affect the validity or enforceability of this Agreement or any other Transaction
Document or the performance by the Company or any Subsidiary of any of its
obligations hereunder or thereunder or (e) any loss or damage to property or any
injury to or death of any Person that may be occasioned by any cause whatsoever
pertaining to any Collateral or the use thereof, and shall further indemnify and
save harmless the Indemnitees from and against (1) all amounts paid in
settlement of any litigation commenced or reasonably threatened against any
Indemnitee that falls within the scope of clauses (a) through (e) above, and (2)
all expenses reasonably incurred in the investigation of, preparation for or
defense of any litigation, proceeding or investigation of any nature whatsoever
that falls within the scope of clauses (a) through (e) above, commenced or
reasonably threatened against the Company, any Subsidiary or any
Indemnitee.

     

    Section
9.11.       
     Most Favored Lender Status.  If
the Company or any Subsidiary enters into, assumes or otherwise becomes bound or
obligated under, or amends, restates or otherwise modifies, any agreement
creating or evidencing any Debt of the Company or any Subsidiary, or any
refinancing or extension of all or any portion thereof, to include one or more
Additional Covenants or Additional Defaults, the terms of this Agreement shall,
without any further action on the part of the Company, any Subsidiary or any of
the holders of the Notes, be deemed to be amended automatically and immediately
to include each Additional Covenant and each Additional Default contained in
such agreement.  The Company further covenants to promptly execute and
deliver at its expense (including the fees and expenses of counsel for the
holders of the Notes) an amendment to this Agreement in form and substance
satisfactory to the Required Holder(s) evidencing the amendment of this
Agreement to include such Additional Covenants and Additional Defaults, provided
that the execution and delivery of such amendment shall not be a precondition to
the effectiveness of such amendment as provided for in this Section 9.11, but
shall merely be for the convenience of the parties hereto.

    
      
         

      

      
        - 10
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    9.12         Proceeds of certain Asset Sales; Casualties; and
Issuance of Equity Interests.  The Company shall pay or cause
to paid (1) 100% of the Asset Sale Net Proceeds and (2) 100% of the Equity
Issuance Net Proceeds as a prepayment of the principal amount of the Advances
(as defined in the Credit Agreement as in effect on the Second Amendment
Effective Date) in excess of $94,000,000 (up to the amount of such excess) and,
if any Asset Sale Net Proceeds or Equity Issuance Net Proceeds remain
thereafter, shall pay such remaining amounts to the Collateral Agent, to be held
by the Collateral Agent in accordance with Section 4.2(b) of the Intercreditor
Agreement as in effect on the date hereof (and giving effect to any amendment
thereof only if agreed to by the Company) and applied to the Secured Obligations
(as defined in the Intercreditor Agreement as in effect on the date hereof, and
giving effect to any amendment thereof only if agreed to by the Company) in
accordance with the Intercreditor Agreement as in effect on the date hereof, and
giving effect to any amendment thereof only if agreed to by the
Company.

    

    As used
herein, “Asset Sale Net
Proceeds” means 100% of all of the Net Cash Proceeds from any sale, Event
of Loss, license, lease or other disposition or transfer of any assets
(including without limitation any Sale and Leaseback Transaction and any sale
permitted under Section 10.5(b), but excluding the Excluded Sales described
below) in excess of $25,000,000 in aggregate amount after the Second Amendment
Effective Date, each payable and effective upon receipt of such Net Cash
Proceeds.  As used herein, “Excluded Sales” means (i) the sale of
inventory in the ordinary course of business, (ii) the sale of obsolete or
worn-out property in the ordinary course of business not to exceed $1,000,000 in
the aggregate after the Second Amendment Effective Date, (iii) sales of notes
receivable or accounts receivable to the extent permitted under Section 10.23; (iv) revenues
from licenses in existence on the Second Amendment Effective Date, including all
renewals, extensions and modifications thereof and substitutions therefor, or
(v) if the Company shall deliver to the holders a certificate of a Responsible
Officer to the effect that the Company or its applicable Subsidiary receiving
the Net Cash Proceeds from an Event of Loss intends to apply the Net Cash
Proceeds from such event (or a portion thereof specified in such certificate),
within 180 days after receipt of such Net Cash Proceeds, to acquire (or replace
or rebuild) real property or equipment to be used in the business of the Company
or its Subsidiaries, and certifying that no Default or Event of Default has
occurred and is continuing, then such Net Cash Proceeds specified in such
certificate shall be excluded from the determination required under the first
sentence of this Section
9.12, provided that to the
extent of any such Net Cash Proceeds therefrom that have not been so applied by
the end of such 180 day period, such Net Cash Proceeds will not be so excluded,
and will be included in the calculation contained in the first sentence of this
Section
9.12.

    

    As used
herein, “Equity Issuance Net
Proceeds” means 50% of all of the Net Cash Proceeds from issuance of any
Equity Interests by the Company.”

    
      
         

      

      
        - 11
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    1.20          Section
10 of the Note Purchase Agreement is amended and restated in its entirety as set
forth on Annex I attached hereto.

     

    1.21          Section
11 of the Note Purchase Agreement is amended by replacing references to
“$20,000,000” in clauses (f), (i) and (j) thereof with
“$10,000,000”.

     

    1.22          Section
11 of the Note Purchase Agreement is further amended by amending and restating
clauses (c) and (e) thereof as follows:

     

    “(c)          the
Company defaults in the performance of or compliance with any term contained in
Section 7.1(d), Section 9.8, Section 9.12, Sections 10.1 through Section 10.8, Sections 10.11 through 10.17 or Section 10.23; or

     

    ***

     

    (e)           any
representation or warranty made in writing by or on behalf of the Company or any
Subsidiary Guarantor or by any officer of the Company or any Subsidiary
Guarantor in this Agreement, in the Subsidiary Guaranty, in any other
Transaction Document or in any writing furnished in connection with the
transactions contemplated hereby proves to have been false or incorrect in any
material respect on the date as of which made; or”

     

    1.23          Section
11 of the Note Purchase Agreement is further amended by replacing the period at
the end of clause (k) thereof with “; or” and adding new clause (l) thereto as
follows:

     

    “(l)           any
Collateral Document shall for any reason (other than solely as the result of an
act or omission of a holder) fail to create a valid and perfected first priority
security interest, subject to the Intercreditor Agreement, in any Collateral
purported to be covered thereby, except as permitted by the terms of this
Agreement or any Collateral Document, or, due to any action by the Company or
any of its Subsidiaries not consented to by the Required Holders, any Collateral
Document shall fail to remain in full force or effect or any action shall be
taken by the Company or any of its Subsidiaries not consented to by the Required
Holders to discontinue or to assert the invalidity or unenforceability of any
Collateral Document, or the Company or any Guarantor shall fail to comply with
any of the terms or provisions of any Collateral Document if the failure
continues beyond any period of grace provided for in the applicable Collateral
Document.”

    

    1.24          Section
12.2 of the Note Purchase Agreement is amended by replacing the reference to “or
in any Note” therein with “, in any Note or in any other Transaction
Document”.

     

    1.25          Section
15 of the Note Purchase Agreement is hereby amended and restated in its
entirety:

    
      
         

      

      
        - 12
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    “Section
15.          
     Expenses, Etc.

     

    Section
15.1       
       Transaction
Expenses.  Whether or not the transactions contemplated hereby
are consummated, the Company will pay all costs and expenses (including
reasonable attorneys’ fees of a special counsel and, if reasonably required by
the Required Holders, local or other counsel) incurred by the Purchasers and
each other holder of a Note in connection with such transactions and in
connection with any amendments, waivers or consents under or in respect of this
Agreement, the Notes, the Subsidiary Guaranty, the Intercreditor Agreement or
any other Transaction Document (whether or not such amendment, waiver or consent
becomes effective), including, without limitation: (a) the costs and expenses
incurred in enforcing or defending (or determining whether or how to enforce or
defend or cause the Collateral Agent to enforce or defend) any rights under this
Agreement, the Notes, the Subsidiary Guaranty, the Intercreditor Agreement or
any other Transaction Document (including, without limitation, to protect,
collect, lease, sell, take possession of, release or liquidate any of the
Collateral) or in responding to any subpoena or other legal process or informal
investigative demand issued in connection with this Agreement, the Notes, the
Subsidiary Guaranty, the Intercreditor Agreement or any other Transaction
Document, or by reason of being a holder of any Note, (b) the costs and
expenses, including financial advisors’ fees, incurred in connection with the
insolvency or bankruptcy of the Company or any Subsidiary or in connection with
any work-out or restructuring of the transactions contemplated hereby and by the
Notes and the Subsidiary Guaranty, (c) all costs
and expenses, including without limitation reasonable attorneys’ fees,
preparing, recording and filing all financing statements, instruments and other
documents to create, perfect and fully preserve and protect the Liens granted in
the Collateral Documents and the rights of the holders or of the Collateral
Agent for the benefit of the holders, (d) all costs and expenses of CT
Corporation incurred pursuant to Section 22.8 hereof, (e) the
fees, costs and expenses of the Collateral Agent and (f) the costs and expenses
incurred in connection with the initial filing of this Agreement and all related
documents and financial information with the SVO of the NAIC, provided, that such costs and
expenses under this clause (f) shall not exceed $3,000 per
series.  The Company will pay, and will save each Purchaser and each
other holder of a Note harmless from, all claims in respect of any fees, costs
or expenses, if any, of brokers and finders (other than those, if any, retained
by a Purchaser or other holder in connection with its purchase of the
Notes).

     

    Section
15.2.     
       Company Financial
Advisor.  Upon the earliest to occur of (i) Consolidated
Adjusted EBITDA, determined as of the end of the fiscal quarter ending March 31,
2009 and calculated for the fiscal quarter then ending, being less than
-$12,000,000, (ii) Consolidated Adjusted EBITDA, determined as of the end of the
fiscal quarter ending June 30, 2009 and calculated for the fiscal quarter then
ending, being less than $5,000,000, (iii) Consolidated Adjusted EBITDA,
determined as of the end of the fiscal quarter ending September 30, 2009 and
calculated for the fiscal quarter then ending, being less than $8,000,000, (iv)
Consolidated Adjusted EBITDA, determined as of the end of any fiscal quarter
thereafter and calculated for the fiscal quarter then ending, being less than
$15,000,000, or (v) the occurrence of any Event of Default, then, at  the request of the
Required Holders, the Company agrees to promptly engage at the Company’s sole
cost a financial consultant selected by the Company and reasonably acceptable to
the Required Holders (the “Company Financial Advisor”)
with a scope of authority, and engaged pursuant to terms and conditions, in each
case reasonably satisfactory to the Company and the Required
Holders.  The Company shall provide the Company Financial Advisor with
full onsite access to its books and records and the opportunity to discuss the
financial condition, performance, financial statements and other matters
regarding the Company and its Subsidiaries with their respective officers,
managers, other employees, directors, independent accountants and financial
advisors to permit the Company Financial Advisor to fully investigate any matter
that arises during its review of the financial and other information of the
Company and its Subsidiaries.  The Company Financial Advisor shall
fully share its work product with the Company and the holders.

    
      
         

      

      
        - 13
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    Section
15.3.        
    Noteholder Financial
Advisor.  The Company agrees that the holders or their counsel
may hire one consulting firm chosen by the Required Holders to act as financial
advisor (the “Noteholder
Financial Advisor”) to counsel for the holders and the
Company  agrees to pay the fees and expenses of the Noteholder
Financial Advisor, provided that such
fees shall be market reasonable (as reasonably determined by the Required
Holders) and expenses shall be incurred on a basis consistent with the Company’s
current travel and entertainment policy in effect on the Second Amendment
Effective Date and disclosed to the holders.  The Company and its
Subsidiaries shall provide the Noteholder Financial Advisor with reasonable
onsite access to their books and records during normal business hours and the
opportunity to discuss the financial condition, performance, financial
statements and other matters regarding the Company and its Subsidiaries with
their respective officers, managers, other employees, directors, independent
accountants and financial advisors to permit the Noteholder Financial Advisor to
fully investigate any matter that arises during its review of the financial and
other information of the Company and its Subsidiaries.  The Noteholder
Financial Advisor shall have no duty to share its work product with, or accept
instructions from, the Company, any Subsidiary or any Person working on their
behalf.  If a Company Financial Advisor has been retained and the
holders thereafter retain a Noteholder Financial Advisor, the holders agree that
they will use reasonable efforts to limit any duplicative efforts between the
Company Financial Advisor and the Noteholder Financial Advisor, as determined by
the Required Holders.

     

    Section 15.4
        
    Survival.  The payment obligations of
the Company under this Section
15 will survive the payment or transfer of any Note, the enforcement,
amendment or waiver of any provision of this Agreement, the Notes, the
Subsidiary Guaranty , the Intercreditor Agreement or any other Transaction
Document, and the termination of this Agreement.”

     

    1.26          Section
22.3 of the Note Purchase Agreement is amended by adding the following sentence
to the end thereof:

     

    “Notwithstanding
the foregoing or any other provision of this Agreement providing for any amount
to be determined in accordance with GAAP, for all purposes of this Agreement the
outstanding principal amount of any Debt of the Company or any Subsidiary of the
type described in clause (a), (b), (c), (e) or (g) of the definition of “Debt”
shall be equal to the actual outstanding principal amount thereof, except with
respect to letters of credit or instruments serving a similar function, the
actual face amount thereof, irrespective of the amount that might otherwise be
accounted for under GAAP as the amount of the liability of the Company or any
Subsidiary with respect thereto, and any determination of the net income (or net
loss), equity or assets of the Company shall not take into account any effect of
marking any such outstanding Debt of the Company or any Subsidiary to market
value.”

    
      
         

      

      
        - 14
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    1.27          Schedule
B to the Note Purchase Agreement is amended and restated in its entirety as set
forth on Annex II attached hereto.

     

    1.28          Exhibits
1-A and 1-B to the Note Purchase Agreement are amended and restated in their
entirety as set forth on Exhibits 1-A and 1-B hereto.

     

    1.29   
      Exhibit 2.2(a) to the Note Purchase
Agreement is amended and restated in its entirety as set forth on Exhibits
2.2(a) hereto.

     

    1.30          Schedule
5.15 to the Note Purchase Agreement is amended and restated in its entirety as
set forth on Schedule 5.15 hereto.

     

    1.31          New
Schedules 10.2-A, 10.2-B 10.14, 10.15 and 10.21 are added to the Note Purchase
Agreement in the form of Schedules 10.2-A, 10.2-B, 10.14, 10.15 and 10.21
attached hereto.

     

    
      	
              SECTION
      2.

            	
              WAIVER.

            

    

     

    Effective
on the Effective Date, the Noteholders waive the Existing Events of
Default.  The foregoing waiver shall be limited precisely as written
and shall relate solely to the Note Purchase Agreement in the manner and to the
extent described herein, and nothing in this Second Amendment shall be deemed to
(a) constitute a consent to or waiver of any Defaults or Events of Defaults
existing under the Note Purchase Agreement or any other Transaction Document
(other than the Existing Events of Default) nor of compliance by the Company or
any Subsidiary with respect to or any modification of any other term, provision
or condition of the Note Purchase Agreement or any other Transaction Document,
or (b) prejudice any right or remedy that the any holder may now have (after
giving effect to the foregoing waiver) or may have in the future under or in
connection with the Note Purchase Agreement or any other Transaction
Document.

     

    
      	
              SECTION
      3.

            	
              REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY.

            

    

     

    To induce
the Noteholders to execute and deliver this Second Amendment (which
representations shall survive the execution and delivery of this Second
Amendment), the Company represents and warrants to the Noteholders
that:

     

    (a)           each
of this Second Amendment, the amended and restated Notes, the Collateral
Documents and each of the other Transaction Documents has been duly authorized,
executed and delivered by it and this Second Amendment constitutes the legal,
valid and binding obligation, contract and agreement of the Company enforceable
against it in accordance with its terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable
principles relating to or limiting creditors’ rights generally;

    
      
         

      

      
        - 15
-

        
          

        

      

      
         

      

    

    (b)           each
of the Note Purchase Agreement, as amended by this Second Amendment, the amended
and restated Notes, the Collateral Documents and each of the other Transaction
Documents constitutes the legal, valid and binding obligations, contracts and
agreements of the Company enforceable against it in accordance with its terms,
except as enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws or equitable principles relating to or limiting
creditors’ rights generally;

     

    (c)    
       the execution, delivery and
performance by the Company of this Second Amendment, the amended and restated
Notes, the Collateral Documents and each of the other Transaction Documents (i)
has been duly authorized by all requisite corporate action and, if required,
shareholder action, (ii) does not require the consent or approval of any
governmental or regulatory body or agency, and (iii) will not (A)(1) violate any
provision of law, statute, rule or regulation or its certificate of
incorporation or bylaws, (2) any order of any court or any rule, regulation or
order of any other agency or government binding upon it, or (3) any provision of
any indenture, agreement or other instrument to which it is a party or by which
its properties or assets are or may be bound, including without limitation the
Credit Agreement or 2005 Note Purchase Agreement, or (B) result in a breach or
constitute (alone or with due notice or lapse of time or both) a default under,
or require any consent or approval under, any indenture, agreement or other
instrument referred to in clause (iii)(A)(3) of this Section 3(c);

     

    (d)           after
giving effect to the waiver and amendments to the Note Purchase Agreement
contained in this Second Amendment, all the representations and warranties
contained in Section 5 of the Note Purchase Agreement and in the other
Transaction Documents are true and correct in all material respects with the
same force and effect as if made by the Company and the Subsidiary Guarantors on
and as of the date hereof;

     

    (e)           after
giving effect to the waiver and amendments to the Note Purchase Agreement
contained in this Second Amendment, no Default or Event of Default shall be in
existence;

     

    (f)    
       The corporate existence of each of the
Airedale Entities has been dissolved and terminated; and

     

    (g)           neither
the Company nor any of its Subsidiaries has paid or agreed to pay, and neither
the Company nor any of its Subsidiaries will pay or agree to pay, any fees or
other consideration for the amendments described in Section 4(c) below except as
set forth in or required pursuant to such amendments.

     

    
      	
              SECTION
    4.

            	
              CONDITIONS TO
      EFFECTIVENESS.

            

    

     

    This
Second Amendment shall not become effective until, and shall become effective on
the date (the “Effective
Date”) when, each and every one of the following conditions shall have
been satisfied:

     

    (a)           Each
of the following shall have been delivered to each Noteholder, each duly
executed and delivered by the party or parties thereto, in form and substance
satisfactory to the Noteholders and dated the Effective Date unless otherwise
indicated, and on the Effective Date in full force and effect with no event
having occurred and being then continuing that would constitute a default
thereunder or constitute or provide the basis for the termination
thereof:

    
      
         

      

      
        - 16
-

        
          

        

      

      
         

      

    

    (i)          executed
counterparts of this Second Amendment, duly executed by the Company and the
holders, shall have been delivered to the Noteholders;

     

    (ii)         the
amended and restated Series A Notes, in the form of Exhibit 1-A attached hereto,
and the amended and restated Series B Notes, in the form of Exhibit 1-B
hereto;

     

    (iii)        the
Intercreditor Agreement, duly executed by the Collateral Agent, the Bank Agent,
the Noteholders and the holders of the notes outstanding under the 2005 Note
Purchase Agreement;

     

    (iv)    
   the Subsidiary Guaranty, in the form attached hereto as
Exhibit 2.2(a), duly executed by each Subsidiary Guarantor;

     

    (v)       
 the Security Agreement, duly executed by the Company, each Subsidiary
Guarantor and the Collateral Agent;

     

    (b)           each
Noteholder shall have received payment of the amendment fee due such holder as
provided in Section 5.1 and counsel to the Noteholders shall have received
payment of the fees and expenses due such counsel as provided in Section 5.2
hereof;

     

    (c)           the
Noteholders shall have received evidence satisfactory to them that a waiver and
amendment to the Credit Agreement and the 2005 Note Purchase Agreement, each in
form and substance satisfactory to the Noteholders, shall have been duly
executed and delivered by the Company and the required other parties and shall
be in full force and effect;

     

    (d)           the
Company shall have delivered a certificate of an Senior Financial Officer (i)
attaching a copy of the January 2009 Financial Forecasts, and (ii) certifying
that the January 2009 Financial Forecasts have been prepared by the Company on
the basis of assumptions which the Company reasonably believes were reasonable
when made in light of the historical performance of the Company and its
Subsidiaries and reasonably foreseeable business conditions, and that no facts
are known to the Company at the date thereof which, if reflected in the January
2009 Financial Forecasts, would result in a material adverse change in the
assets, liabilities, results of operations or cash flows reflected
therein;

     

    (e)           the
representations and warranties of the Company set forth in Section 3 hereof
shall be true and correct on the date of the effectiveness of this Second
Amendment;

     

    (f)  
         the Noteholders shall have
received lien searches in respect of the Company and its Subsidiaries in form
and substance satisfactory to the Noteholders;

    
      
         

      

      
        - 17
-

        
          

        

      

      
         

      

    

    (g)           the
Noteholders shall have received copies of all chattel paper, instruments and
documents of title in which the Collateral Agent has been granted a security
interest and are then required under the Collateral Documents to be delivered to
the Collateral Agent, together with the related transfer documents executed in
blank, in each case received by the Collateral Agent, all Uniform Commercial
Code financing statements perfecting the security interests and liens granted to
the Collateral Agent, duly filed in all offices necessary to perfect such
security interests and liens or deemed by such Purchaser to be advisable, and
all such other certificates, documents, agreements, recording and filings
necessary to establish a valid and perfected first priority lien and security
interest (subject only to Liens described in Section 10.4 of the Note
Purchase Agreement) in favor of the Collateral Agent in all of the Collateral or
deemed by the Required Holders or the Collateral Agent to be
advisable;

     

    (h)           the
Company shall have delivered from insurance carriers acceptable to the
Noteholders certificates of insurance in such forms and amounts acceptable to
the Noteholders evidencing insurance required to be maintained under Section 9.2
of the Note Purchase Agreement or under any of the Collateral Documents under
insurance policies with additional insured and loss payable clauses in favor of
the Collateral Agent and acceptable to the Noteholders;

     

    (i)   
        the Noteholders shall have
received a copy of the resolutions of the Board of Directors of the Company and
each Subsidiary Guarantor authorizing the execution, delivery and performance by
the Company or such Subsidiary Guarantor of this Second Amendment, the amended
and restated Notes, the Collateral Documents and the Subsidiary Guaranty, as
applicable, to which it is a party, certified by its Secretary or an Assistant
Secretary;

     

    (j)    
       the Noteholders shall have received an
opinion of counsel to the Company and the Subsidiary Guarantors in form and
substance satisfactory to the Noteholders;

     

    (k)           the
Company shall have provided all other due diligence materials requested by the
Noteholders; and

     

    (l)  
         all corporate and other
proceedings taken or to be taken in connection with the transactions
contemplated hereby and all documents incident thereto shall be satisfactory in
substance and form to the Noteholders, and the Noteholders shall have received
all such counterpart originals or certified or other copies of such documents as
it may reasonably request.

    
      
         

      

      
        - 18
-

        
          

        

      

      
         

      

    

    
      	
              SECTION
      5.

            	
              AMENDMENT
      FEE; PAYMENT OF NOTEHOLDERS’ COUNSEL FEES AND
  EXPENSES.

            

    

     

    5.1           In
consideration of the execution and delivery by the Noteholders of this Second
Amendment, the Company agrees to pay to each holder of a Note on or before the
Effective Date an amendment fee in an amount equal to 0.75% of the outstanding
principal amount of the Notes held by such holder.

     

    5.2           The
Company agrees to pay upon demand, the reasonable fees and expenses of Schiff
Hardin LLP, counsel to the Noteholders, in connection with the negotiation,
preparation, approval, execution and delivery of this Second
Amendment.

     

    
      	
              SECTION
      6.

            	
              MISCELLANEOUS.

            

    

     

    6.1           This
Second Amendment shall be construed in connection with and as part of the Note
Purchase Agreement, and except as modified and expressly amended by this Second
Amendment, all terms, conditions and covenants contained in the Note Purchase
Agreement and the Notes are hereby ratified and shall be and remain in full
force and effect.  The Company and the Subsidiary Guarantors
acknowledge and agree that no holder is under any duty or obligation of any kind
or nature whatsoever to grant the Company any additional amendments or waivers
of any type, whether or not under similar circumstances, and no course of
dealing or course of performance shall be deemed to have occurred as a result of
the amendments herein.

     

    6.2           Any
and all notices, requests, certificates and other instruments executed and
delivered after the execution and delivery of this Second Amendment may refer to
the Note Purchase Agreement without making specific reference to this Second
Amendment but nevertheless all such references shall include this Second
Amendment unless the context otherwise requires.

     

    6.3           The
Company represents and warrants that it is not aware of any claims or causes of
action against any Noteholder or any of their respective affiliates, successors
or assigns, and that it has no defenses, offsets or counterclaims with respect
to the Note Purchase Agreement, the Notes or any of the other Transaction
Documents.  Notwithstanding this representation and as further
consideration for the agreements and understandings herein, the Company, on
behalf of itself and its Subsidiaries, employees, agents, executors, heirs,
successors and assigns (the "Releasing Parties"), hereby releases each
Noteholder and their respective predecessors, officers, directors, employees,
agents, attorneys, affiliates, subsidiaries, successors and assigns (the
"Released Parties"), from any liability, claim, right or cause of action which
now exists or hereafter arises as a result of acts, omissions or events
occurring on or prior to the date hereof, whether known or unknown, including
but not limited to claims arising from or in any way related to this Second
Amendment, the Note Purchase Agreement and the other Transaction Documents, all
transactions relating to this Second Amendment, the Note Purchase Agreement or
any of the other Transaction Documents or the business relationship among, or
any other transactions or dealings among the Releasing Parties or any of them
and the Released Parties or any of them.

    
      
         

      

      
        - 19
-

        
          

        

      

      
         

      

    

    6.4           The
Company acknowledges and agrees that each Noteholder has fully performed all of
its obligations under the Note Purchase Agreement and the other Transaction
Documents, and that all actions taken by such Noteholder are reasonable and
appropriate under the circumstances and within their rights under the Note
Purchase Agreement and the other Transaction Documents.  The actions
of each Noteholder taken pursuant to this Second Amendment and the documents
referred to herein are in furtherance of their efforts as secured lenders
seeking to collect the obligations owed to them.  Nothing contained in
this Second Amendment shall be deemed to create a partnership, joint venture or
agency relationship of any nature between the Company, its Subsidiaries, and the
Noteholders.  The Company, its Subsidiaries, and the Noteholders agree
that notwithstanding the provisions of this Second Amendment, each of the
Company and its Subsidiaries remain in control of their respective business
operations and determine the business plans (including employment, management
and operating directions) for its business.

     

    6.5           The
descriptive headings of the various Sections or parts of this Second Amendment
are for convenience only and shall not affect the meaning or construction of any
of the provisions hereof.

     

    6.6           This
Second Amendment shall be governed by and construed in accordance with New York
law.

     

    6.7           The
execution hereof by you shall constitute a contract between us for the uses and
purposes hereinabove set forth, and this Second Amendment may be executed in any
number of counterparts, each executed counterpart constituting an original, but
all together only one agreement.

     

    * * * *
*

    
      
         

      

      
        - 20
-

        
          

        

      

      
         

      

    

     

    
      
        	 
      	
                MODINE
      MANUFACTURING COMPANY

              
	 
      	 
      
	 
      	 
      
	 
      	
                By:    /s/ Bradley C.
      Richardson

              
	 
      	
                Name:    Bradley
      C. Richardson

              
	 
      	
                Title:    Executive
      Vice President – Corporate Strategy and Chief Financial
      Officer

              

      

    

    

    

    [Signature
Page – Second Amendment to 2006]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              	
                      ACCEPTED
      AND AGREED TO:

                    
	
                      THE
      PRUDENTIAL INSURANCE COMPANY OF AMERICA

                    
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                      By:

                    	/s/
      David S. Quackenbush	 
      
	
                      Title:

                    	
                      Vice
      President

                    	 
      
	 
      	 
      	 
      
	
                      GIBRALTAR
      LIFE INSURANCE CO., LTD.

                    
	 
      	 
      	 
      
	
                      By:

                    	
                      Prudential
      Investment Management (Japan), Inc.

                    	 
      
	 
      	
                      as
      Investment Manager

                    	 
      
	 
      	 
      	 
      
	
                      By:

                    	
                      Prudential
      Investment Management, Inc.,

                    	 
      
	 
      	
                      as
      Sub-Adviser

                    	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                      By:

                    	/s/
      David S. Quackenbush	 
      
	
                      Title:

                    	
                      Vice
      President

                    	 
      
	 
      	 
      	 
      
	
                      PRUDENTIAL
      RETIREMENT INSURANCE AND ANNUITY COMPANY

                    
	 
      	 
      	 
      
	
                      By:

                    	
                      Prudential
      Investment Management, Inc.,

                    	 
      
	 
      	
                      as
      investment manager

                    	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                      By:

                    	/s/
      David S. Quackenbush	 
      
	
                      Title:

                    	
                      Vice
      President

                    	 
      

            

          

        

      

    

    

    

    [Signature
Page – Second Amendment to 2006]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            	
                    THE
      PRUDENTIAL INSURANCE COMPANY, LTD.

                  
	 
      	 
      	 
      
	
                    By:

                  	
                    Prudential
      Investment Management (Japan), Inc.

                  	 
      
	 
      	
                    as
      Investment Manager

                  	 
      
	 
      	 
      	 
      
	
                    By:

                  	
                    Prudential
      Investment Management, Inc.,

                  	 
      
	 
      	
                    as
      Sub-Adviser

                  	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                    By:

                  	/s/
      David S. Quackenbush	 
      
	
                    Title:

                  	
                    Vice
      President

                  	 
      
	 
      	 
      	 
      
	
                    AMERICAN
      BANKERS INSURANCE COMPANY OF FLORIDA, INC.

                  
	
                    AMERICAN
      MEMORIAL LIFE INSURANCE COMPANY

                  
	
                    AMERICAN
      SECURITY INSURANCE COMPANY

                  
	
                    TIME
      INSURANCE COMPANY

                  
	
                    UNION
      SECURITY INSURANCE COMPANY

                  
	
                    SECURITY
      BENEFIT LIFE INSURANCE COMPANY, INC.

                  
	
                    ZURICH
      AMERICAN INSURANCE COMPANY

                  
	 
      	 
      	 
      
	
                    By:

                  	
                    Prudential
      Private Placement Investors, L.P.

                  	 
      
	 
      	
                    (as
      Investment Advisor)

                  	 
      
	 
      	 
      	 
      
	
                    By:

                  	
                    Prudential
      Private Placement Investors, Inc.

                  	 
      
	 
      	
                    (as
      its General Partner)

                  	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                    By:

                  	/s/
      David S. Quackenbush	 
      
	
                    Title:

                  	
                    Vice
      President

                  	 
      

          

        

      

    

    

    

    [Signature
Page – Second Amendment to 2006]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        	
                TEACHERS
      INSURANCE AND ANNUITY ASSOCIATION OF AMERICA

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                By:

              	
                /s/ Brian Roelke

              	 
      
	
                Name:

              	
                Brian Roelke

              	 
      
	
                Title:

              	
                Director

              	 
      

      

    

    

    

    [Signature
Page – Second Amendment to 2006]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          	
                  COUNTRY
      LIFE INSURANCE COMPANY

                
	 
      	 
      
	 
      	 
      
	
                  By:

                	
                  /s/ John Jacobs

                
	
                  Name:

                	
                  John
      Jacobs

                
	
                  Title:

                	
                  Director
      – Fixed Income

                

        

      

    

    

    

    [Signature
Page – Second Amendment to 2006]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      
        
          	
                  STANDARD
      INSURANCE COMPANY

                
	 
      	 
      
	 
      	 
      
	
                  By:

                	
                  /s/ Julie Grandstaff

                
	
                  Name:

                	
                  Julie
      Grandstaff

                
	
                  Title:

                	
                  Vice
      President & Managing
Director

                

        

      

    

    

    

    [Signature
Page – Second Amendment to 2006]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    [Form Of Series A
Note]

    

    THIS
SERIES A NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, AND, UNLESS SO REGISTERED, MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE
DISPOSED OF EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SAID ACT OR
IF SAID ACT DOES NOT APPLY.

     

    MODINE
MANUFACTURING COMPANY

     

    Amended
and Restated Senior Secured Note, Series A, due December 7, 2017

     

    
      
        	
                No.
      RA-[__________________]

              	
                [Date]

              
	
                $[_______________]

              	
                PPN
      607828 C#5

              

      

    

    

    FOR VALUE
RECEIVED, the undersigned, MODINE MANUFACTURING COMPANY (herein called the “Company”), a corporation
organized and existing under the laws of the State of Wisconsin, hereby promises
to pay to [____________________], or registered assigns, the principal sum of
[____________________] DOLLARS (or so much thereof as shall not have been
prepaid) on December 7, 2017, with interest (computed on the basis of a 360-day
year of twelve 30-day months) on the unpaid balance hereof (a) at the Applicable
Rate per annum from the date hereof, payable quarterly, on the 7th day of March,
June, September and December in each year, commencing with the March 7, June 7,
September 7 or December 7 next succeeding the date hereof, until the principal
hereof shall have become due and payable, and (b) to the extent permitted by
law, on any overdue payment of interest and, during the continuance of an Event
of Default, on such unpaid balance and on any overdue payment of any Make-Whole
Amount, at a rate per annum from time to time equal to the greater of (i) the
Applicable Rate plus 2.00% or (ii) 2.0% over the rate of interest publicly
announced by JPMorgan Chase Bank, N.A. from time to time in New York, New York
as its “base” or “prime” rate payable quarterly as aforesaid (or, at the option
of the registered holder hereof, on demand).

     

    Payments
of principal of, interest on and any Make-Whole Amount with respect to this Note
are to be made in lawful money of the United States of America at the principal
office of the Company in Racine, Wisconsin, or at such other place as the
Company shall have designated by written notice to the holder of this Note as
provided in the Note Purchase Agreement referred to below.

     

    This
Series A Note is one of a series of Senior Notes (herein called the “Series A Notes”) issued
pursuant to the Note Purchase Agreement, dated as of December 7, 2006 (as from
time to time amended, the “Note Purchase Agreement”),
between the Company and the respective Purchasers named therein and is
entitled to the benefits thereof.  Each holder of this Series A Note
will be deemed, by its acceptance hereof, to have (i) agreed to the
confidentiality provisions set forth in Section 20 of the Note
Purchase Agreement and (ii) made the representation set forth in Section 6.3 of the Note
Purchase Agreement.  Unless otherwise indicated, capitalized terms
used in this Series A Note shall have the respective meanings ascribed to such
terms in the Note Purchase Agreement.

     

    Exhibit
1-A

    (to
Second Amendment to Note Purchase Agreement)

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    This
Series A Note is a registered Series A Note and, as provided in the Note
Purchase Agreement, upon surrender of this Series A Note for registration of
transfer, duly endorsed, or accompanied by a written instrument of transfer duly
executed, by the registered holder hereof or such holder’s attorney duly
authorized in writing, a new Series A Note for a like principal amount will be
issued to, and registered in the name of, the transferee.  Prior to
due presentment for registration of transfer, the Company may treat the person
in whose name this Series A Note is registered as the owner hereof for the
purpose of receiving payment and for all other purposes, and the Company will
not be affected by any notice to the contrary.

     

    The
Company will make required prepayments of principal on the dates and in the
amounts specified in the Note Purchase Agreement.  This Series A Note
is also subject to optional prepayment, in whole or from time to time in part,
at the times and on the terms specified in the Note Purchase Agreement, but not
otherwise.

     

    This
Series A Note is secured by, and entitled to the benefits of, the Collateral
Documents and is guaranteed pursuant to one or more Subsidiary Guaranties
executed by certain guarantors.  Reference is made to the Collateral
Documents for a statement concerning the terms and conditions governing the
collateral security for the obligations of the Company hereunder and reference
is made to such Subsidiary Guaranties for a statement concerning the terms and
conditions governing such guarantee of the obligations of the Company
hereunder.

     

    If an
Event of Default occurs and is continuing, the principal of this Series A Note
may be declared or otherwise become due and payable in the manner, at the price
(including any applicable Make-Whole Amount) and with the effect provided in the
Note Purchase Agreement.

     

    This Note
(i) merely re-evidences the indebtedness previously evidenced by the Company’s
5.68% Senior Note, Series A, due December 7, 2017, No. RA-[_____] (the “Existing
Note”), (ii) is given in exchange for, and not as payment of, the Existing Note,
and (iii) is in no way intended to constitute a novation of the Existing
Note.

     

    This
Series A Note shall be construed and enforced in accordance with, and the rights
of the parties shall be governed by, the law of the State of New York, excluding
choice-of-law principles of the law of such State that would require application
of the laws of a jurisdiction other than such State.

    
      
         

      

      
        E-1-A-2

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  	 
      	
                          Modine
      Manufacturing Company

                        
	 	 
	 	 
	 
      	
                          By:

                        	 
      
	 
      	
                          Name:

                        	 
      
	 
      	
                          Title:

                        	 
      

                

              

            

          

        

      

    

    
      
         

      

      
        E-1-A-3

        
          

        

      

      
         

      

    

    [Form
of Series B Note]

     

    THIS
SERIES B NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, AND, UNLESS SO REGISTERED, MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE
DISPOSED OF EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SAID ACT OR
IF SAID ACT DOES NOT APPLY.

     

    Modine
Manufacturing Company

     

    Amended
and Restated Senior Secured Note, Series B, due December 7, 2017

     

    
      
        	
                No.
      RB-[__________]

              	
                [Date]

              
	
                $[__________]

              	
                PPN
      607828 D@6

              

      

    

    

    For Value
Received, the undersigned, Modine Manufacturing Company (herein called the “Company”), a corporation
organized and existing under the laws of the State of Wisconsin, hereby promises
to pay to [____________________], or registered assigns, the principal sum of
[____________________] DOLLARS (or so much thereof as shall not have been
prepaid) on December 7, 2017, with interest (computed on the basis of a 360-day
year of twelve 30-day months) on the unpaid balance hereof (a) at the Applicable
Rate per annum from the date hereof, payable quarterly, on the 7th day of March,
June, September and December in each year, commencing with the March 7, June 7,
September 7 or December 7 next succeeding the date hereof, until the principal
hereof shall have become due and payable, and (b) to the extent permitted by
law, on any overdue payment of interest and, during the continuance of an Event
of Default, on such unpaid balance and on any overdue payment of any Make-Whole
Amount, at a rate per annum from time to time equal to the greater of (i) the
Applicable Rate plus 2.00% or (ii) 2.0% over the rate of interest publicly
announced by JPMorgan Chase Bank, N.A. from time to time in New York, New York
as its “base” or “prime” rate payable quarterly as aforesaid (or, at the option
of the registered holder hereof, on demand).

     

    Payments
of principal of, interest on and any Make-Whole Amount with respect to this Note
are to be made in lawful money of the United States of America at the principal
office of the Company in Racine, Wisconsin, or at such other place as the
Company shall have designated by written notice to the holder of this Note as
provided in the Note Purchase Agreement referred to below.

     

    This
Series B Note is one of a series of Senior Notes (herein called the “Series B Notes”) issued
pursuant to the Note Purchase Agreement, dated as of December 7, 2006 (as from
time to time amended, the “Note Purchase Agreement”),
between the Company and the respective Purchasers named therein and is
entitled to the benefits thereof.  Each holder of this Series B Note
will be deemed, by its acceptance hereof, to have (i) agreed to the
confidentiality provisions set forth in Section 20 of the Note
Purchase Agreement and (ii) made the representation set forth in Section 6.3 of the Note
Purchase Agreement.  Unless otherwise indicated, capitalized terms
used in this Series B Note shall have the respective meanings ascribed to such
terms in the Note Purchase Agreement.

     

    Exhibit
1-B

    (to
Second Amendment to Note Purchase Agreement)

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    This
Series B Note is a registered Series B Note and, as provided in the Note
Purchase Agreement, upon surrender of this Series B Note for registration of
transfer, duly endorsed, or accompanied by a written instrument of transfer duly
executed, by the registered holder hereof or such holder’s attorney duly
authorized in writing, a new Series B Note for a like principal amount will be
issued to, and registered in the name of, the transferee.  Prior to
due presentment for registration of transfer, the Company may treat the person
in whose name this Series B Note is registered as the owner hereof for the
purpose of receiving payment and for all other purposes, and the Company will
not be affected by any notice to the contrary.

     

    The
Company will make required prepayments of principal on the dates and in the
amounts specified in the Note Purchase Agreement.  This Series B Note
is also subject to optional prepayment, in whole or from time to time in part,
at the times and on the terms specified in the Note Purchase Agreement, but not
otherwise.

     

    This
Series B Note is secured by, and entitled to the benefits of, the Collateral
Documents and is guaranteed pursuant to one or more Subsidiary Guaranties
executed by certain guarantors.  Reference is made to the Collateral
Documents for a statement concerning the terms and conditions governing the
collateral security for the obligations of the Company hereunder and reference
is made to such Subsidiary Guaranties for a statement concerning the terms and
conditions governing such guarantee of the obligations of the Company
hereunder.

     

    If an
Event of Default occurs and is continuing, the principal of this Series B Note
may be declared or otherwise become due and payable in the manner, at the price
(including any applicable Make-Whole Amount) and with the effect provided in the
Note Purchase Agreement.

     

    This Note
(i) merely re-evidences the indebtedness previously evidenced by the Company’s
5.68% Senior Note, Series B, due December 7, 2018, No. RB-[____] (the “Existing
Note”), (ii) is given in exchange for, and not as payment of, the Existing Note,
and (iii) is in no way intended to constitute a novation of the Existing
Note.

     

    This
Series B Note shall be construed and enforced in accordance with, and the rights
of the parties shall be governed by, the law of the State of New York, excluding
choice-of-law principles of the law of such State that would require application
of the laws of a jurisdiction other than such State.

    
      
         

      

      
        E-1-B-2

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              	 
      	
                      Modine
      Manufacturing Company

                    
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                      By:

                    	 
      
	 
      	
                      Name:

                    	 
      
	 
      	
                      Title:

                    	 
      

            

          

        

      

    

    
      
         

      

      
        E-1-B-3

        
          

        

      

      
         

      

    

    ANNEX
I

    

    

    SECTION
10.     Negative Covenants.

     

    The
Company covenants that so long as any of the Notes are outstanding:

     

    Section
10.1           Limitations
on Consolidated Total Debt.  The Company will not permit as of
the last day of each fiscal quarter set forth below the ratio of (a)
Consolidated Total Debt minus the amount of any cash collateral provided for any
of the Secured Obligations, to (b) Consolidated Adjusted EBITDA for the four
consecutive fiscal quarters then most recently ended, to exceed the ratios set
forth opposite such fiscal quarter:

     

    
      
        
          
            	
                    Fiscal Quarter

                  	
                    Maximum

                    Leverage Ratio

                  
	
                    Fiscal
      quarter ending March 31, 2010

                  	
                    7.25
      to 1.0

                  
	
                    Fiscal
      quarter ending June 30, 2010

                  	
                    5.5
      to 1.00

                  
	
                    Fiscal
      quarter September 30, 2010

                  	
                    4.75
      to 1.00

                  
	
                    Fiscal
      quarter ending December 31, 2010

                  	
                    3.75
      to 1.0

                  
	
                    Fiscal
      quarters ending March 31, 2011 and June 30, 2011

                  	
                    3.50
      to 1.0

                  
	
                    Any
      fiscal quarter ending thereafter

                  	
                    3.00
      to 1.0

                  

          

        

      

    

    

    Section
10.2          Limitations on
Debt.  The Company will not, nor will it permit any Subsidiary
to, create, incur or suffer to exist any Debt, except:

     

    (a)           the
Notes;

     

    (b)           the
Notes (as defined in the 2005 Note Purchase Agreement);

     

    (c)           the
Loans and the Reimbursement Obligations (each as defined in the Credit Agreement
as in effect on the Second Amendment Effective Date); provided that the
aggregate principal amount of the Debt thereunder shall not at any time exceed
$175,000,000 less (i) an amount not to exceed $15,000,000 equal to the amount by
which the dollar equivalent of the Euro amount of any credit facility or
facilities (based on commitments) entered into by the Modine Holding
Consolidated Group exceeds $5,000,000, (ii) the aggregate amount of prepayments
of the principal amount of the Advances (as defined in the Credit Agreement as
in effect on the Second Amendment Effective Date) made pursuant to Section 9.12 and (iii) 38.524590163% of
the aggregate amount of all payments made to the Collateral Agent pursuant to
Section
9.12.

    
      
         

      

      
        Annex
I-1

        
          

        

      

      
         

      

    

    (d)           Debt
of a Subsidiary owed to the Company or to a Wholly-Owned Subsidiary to the
extent permitted under Section
10.15;

     

    (e)           Debt
described in Schedule 10.2-A not exceeding the commitment limits set forth
therein, and extensions, renewals and replacements of any such Debt to the
extent such extensions, renewals and replacements do not increase the
outstanding principal amount thereof;

     

    (f)     
      Receivables Transaction Attributed
Indebtedness;

     

    (g)           Debt,
in addition to Debt permitted pursuant to subsections (a)-(f) above, of the
Modine Holding Consolidated Group in an aggregate principal amount not to
exceed €35,000,000; and

     

    (h)           Debt,
in addition to Debt permitted pursuant to subsections (a)-(g) above, in an
aggregate amount at any time outstanding not to exceed
$10,000,000.

     

    Notwithstanding
anything herein to the contrary, the Company will not permit or suffer to exist
itself or any of its Subsidiaries (other than Modine Korea) to have any
Guaranty, or any other liability or obligation of any kind, with respect to any
Debt or any other obligation or liability of Modine Korea, except such Guaranty
or other liability or obligation existing on the Second Amendment Effective Date
and described on Schedule 10.2-B, but no increase in the amount thereof as
reduced from time to time.

     

    Section
10.3         Interest Expense
Coverage Ratio.  The Company will not permit, at the end of any
fiscal quarter set forth below, the ratio of (a) Consolidated Adjusted EBITDA
for the period of the four consecutive fiscal quarters ended with such fiscal
quarter, to (b) Consolidated Interest Expense for the period of the four
consecutive fiscal quarters ended with such fiscal quarter, to be less than the
amount set forth in the table below for such fiscal quarter:

     

    
      
        
          	
                  Fiscal Quarter

                	
                  Minimum

                  Interest Expense

                  Coverage Ratio

                
	
                  Fiscal
      quarter ending March 31, 2010

                	
                  1.50
      to 1.0

                
	
                  Fiscal
      quarter ending June 30, 2010

                	
                  2.00
      to 1.00

                
	
                  Fiscal
      quarter September 30, 2010

                	
                  2.50
      to 1.00

                
	
                  Any
      fiscal quarter ending thereafter

                	
                  3.00
      to 1.0

                

        

      

    

    

    Section
10.4          Limitation on
Liens.  The Company will not, and will not permit any of its
Subsidiaries to, directly or indirectly create, incur, assume or permit to exist
(upon the happening of a contingency or otherwise) any Lien on or with respect
to any property or asset (including, without limitation, any document or
instrument in respect of goods or accounts receivable) of the Company or any
such Subsidiary, whether now owned or held or hereafter acquired, or any income
or profits therefrom or assign or otherwise convey any right to receive income
or profits, except:

    
      
         

      

      
        Annex
I-2

        
          

        

      

      
         

      

    

    (a)           Liens
for property taxes and assessments or governmental charges or levies and Liens
securing claims or demands of mechanics and materialmen; provided that payment thereof
is not at the time required by Section 9.4;

     

    (b)           Liens
incidental to the conduct of business or the ownership of properties and assets
(including Liens in connection with worker’s compensation, unemployment
insurance and other like laws, warehousemen’s and attorneys’ liens and statutory
landlords’ liens) and Liens to secure the performance of bids, tenders or trade
contracts, or to secure statutory obligations, surety or appeal bonds or other
Lien of like general nature, in any such case incurred in the ordinary course of
business and not in connection with the borrowing of money; provided that (i) any such
Lien secures only amounts not due and payable or the payment of which is being
contested in good faith by appropriate actions or proceedings and (ii) any such
Lien does not materially impair the business of the Company and its Subsidiaries
taken as a whole or the value of the related property for the purposes of such
business;

     

    (c)           any
attachment or judgment Lien, unless the judgment it secures shall not, within 60
days after the entry thereof, have been discharged or execution thereof stayed
pending appeal, or shall not have been discharged within 60 days after the
expiration of any such stay;

     

    (d)           Liens
existing as of the date of Second Amendment Effective Date and described on
Schedule 5.15
hereto;

     

    (e)           survey
exceptions or minor encumbrances, leases or subleases granted to others,
easements or reservations, or rights of others for rights-of-way, utilities and
other similar purposes, or zoning or other restrictions as to the use of real
properties, (i) which are necessary for the conduct of the activities of the
Company and its Subsidiaries or which customarily exist on properties of
corporations engaged in similar activities and similarly situated and (ii) which
do not in any event materially impair their use in the operation of the business
of the Company and its Subsidiaries taken as a whole or the value of such
properties;

     

    (f)       
    Liens created or incurred after the date of the Closing
given to secure the payment of the purchase price incurred in connection with
the acquisition or purchase or the cost of construction of property or of assets
useful and intended to be used in carrying on the business of the Company or a
Subsidiary, including Liens existing on such property or assets at the time of
acquisition thereof or at the time of completion of construction, as the case
may be, whether or not such existing Liens were given to secure the payment of
the acquisition or purchase price or cost of construction, as the case may be,
of the property or assets to which they attach; provided that (i) the Lien
shall attach solely to the property or assets acquired, purchased or
constructed, (ii) such Lien shall have been created or incurred within 180 days
of the date of acquisition or purchase or completion of construction, as the
case may be, (iii) at the time of acquisition or purchase or of completion of
construction of such property or assets, the aggregate amount remaining unpaid
on all Debt secured by Liens on such property or assets, whether or not assumed
by the Company or a Subsidiary, shall not exceed an amount equal to 100% of the
lesser of the total purchase price or fair market value at the time of
acquisition or purchase (as determined by a Responsible Officer of the Company)
or the cost of construction on the date of completion thereof, (iv) Debt secured
by any such Lien shall have been created or incurred within the applicable
limitations provided in
Sections 10.1 and 10.2, (v) at the time of
creation, issuance, assumption, guarantee or incurrence of the Debt secured by
such Lien and after giving effect thereto and to the application of the proceeds
thereof, no Event of Default would exist and (vi) the aggregate outstanding
amount of Debt secured by all such Liens shall not exceed $10,000,000 at any
time;

    
      
         

      

      
        Annex
I-3

        
          

        

      

      
         

      

    

    (g)           Liens
incurred in connection with any transfer of an interest in accounts or notes
receivable or related assets as part of a Qualified Receivables
Transaction;

     

    (h)           Liens
in favor of the Collateral Agent securing the Secured Obligations and subject to
the Intercreditor Agreement;

     

    (i)    
       Liens in favor of the Bank Agent in
(1) property of Foreign Subsidiaries to secure the obligations of Foreign
Subsidiaries that are borrowers under the Credit Agreement and (2) cash
collateral accounts of the Company and its Domestic Subsidiaries with deposits
not in excess of $10,000,000 in the aggregate securing obligations of the
Company and Domestic Subsidiaries under Swap Contracts in existence prior to the
Second Amendment Effective Date (but not extensions, renewals or rollovers
thereof); and

     

    (j)      
     Liens on assets of the Modine Holding Consolidated
Group securing Debt owing by the Modine Holding Consolidated Group and permitted
under Section 10.2(g) ; and

     

    (k)      
     in addition to Liens otherwise described in
clauses (a) through (j) above, Liens securing an aggregate amount of Debt
outstanding at any time of no more than $10,000,000.

     

    Section
10.5         Sale of
Assets.  The Company will not, and will not permit any
Subsidiary to, sell, lease, transfer, abandon or otherwise dispose of assets
including, without limitation, pursuant to any Sale and Leaseback Transaction;
provided that the
foregoing restrictions do not apply to:

     

    (a)           the
sale, lease, transfer or other disposition of assets of a Subsidiary to the
Company or a Wholly-owned Subsidiary; or

     

    (b)           the
following sale, lease or other dispositions of assets:

     

    (i) sales
of inventory in the ordinary course of business;

    

    (ii) sale
or other disposition of Modine Korea, whether by sale of Equity Interests or
assets, and other assets owned by Foreign Subsidiaries related to the
Korean-based vehicular HVAC business; and

    
      
         

      

      
        Annex
I-4

        
          

        

      

      
         

      

    

    (iii) leases,
sales or other dispositions of property that, together with all other property
of the Company and its Subsidiaries previously leased, sold or disposed of as
permitted by this clause (iii) during the twelve-month period ending with the
month in which any such lease, sale or other disposition occurs, do not
constitute a Substantial Portion of the property of the Company and its
Subsidiaries, provided that, after giving effect to any such lease, sale or
other disposition, no Default or Event of Default shall have occurred and be
continuing; and

    

    (iv) any
transfer of an interest in accounts or notes receivable and related assets
permitted under Section
10.23.

    

    provided
that, in the case of any lease, sale or other disposition under clauses (ii),
(iii) or (iv) of this Section
10.5(b), the proceeds of such any such lease, sale or other disposition
are applied in accordance with Section 9.12.

    

    Section
10.6         Mergers,
Consolidations and Sales of Assets.  The Company will not, and
will not permit any Subsidiary to, consolidate with or be a party to a merger
with any other Person, or sell, lease or otherwise dispose of all or
substantially all of its assets; provided that any Subsidiary
may sell substantially all its assets if such sale is permitted under Section 10.5(c) of this
Agreement; and any Subsidiary may merge or consolidate with or into the Company
or any Wholly-owned Subsidiary so long as in (i) any merger or consolidation
involving the Company, the Company shall be the surviving or continuing
corporation and (ii) in any merger or consolidation involving a Wholly-owned
Subsidiary (and not the Company), the Wholly-owned Subsidiary shall be the
surviving or continuing corporation or limited liability company.

     

    Section
10.7          Transactions
with Affiliates.  The Company will not and will not permit any
Subsidiary to enter into directly or indirectly any transaction or group of
related transactions (including without limitation the purchase, lease, sale or
exchange of properties of any kind or the rendering of any service) with any
Affiliate (other than the Company or another Subsidiary), except (a) in the
ordinary course and pursuant to the reasonable requirements of the Company’s or
such Subsidiary’s business and upon fair and reasonable terms no less favorable
to the Company or such Subsidiary than would be obtainable in a comparable
arm’s-length transaction with a Person not an Affiliate; and (b) transactions
between the Company or any Subsidiary, on the one hand, and any Subsidiary or
other special purpose entity created to engage solely in a Qualified Receivables
Transaction.

     

    Section
10.8          Line of
Business.  The Company will not and will not permit any
Subsidiary to engage in any business if, as a result, the general nature of the
business in which the Company and its Subsidiaries, taken as a whole, would then
be engaged would be substantially changed from the general nature of the
business in which the Company and its Subsidiaries, taken as a whole, are
engaged on the date of this Agreement as described in the
Memorandum.  The Company will not and will not permit any Subsidiary
to discontinue or eliminate a business line or segment; provided that the
foregoing limitation on the discontinuation or elimination of a business line or
segment shall not prohibit the liquidation and dissolution of any Subsidiary or
the discontinuation or elimination of any business line or segment, provided
that (i) the Company shall have reasonably determined that such business line or
segment being discontinued or eliminated is a non-core business of the Company
and its Subsidiaries, (ii) any sale of assets relating to any discontinuation or
elimination of any business line or segment or any liquidation or dissolution of
any Subsidiary shall be subject to the limitation on the sale, lease or other
transfer of assets described in Section 10.5 and the
requirements under Section
9.12 and the
other terms of this Agreement, and (iii) after giving effect to any such
liquidation or dissolution or discontinuation or elimination of any business
line or segment, no Default or Event of Default shall have occurred and be
continuing or would be caused thereby.

    
      
         

      

      
        Annex
I-5

        
          

        

      

      
         

      

    

    Section
10.9         Terrorism Sanctions
Regulations.  The Company will not and will not permit any
Subsidiary to (a) become a Person described or designated in the Specially
Designated Nationals and Blocked Persons List of the Office of Foreign Assets
Control or in Section 1 of the Anti-Terrorism Order or (b) knowingly engage in
any dealings or transactions with any such Person in violation of applicable
Laws.

     

    Section
10.10       [Intentionally
Omitted].  

     

    Section
10.11       Minimum
EBITDA.  The Company will not permit the Consolidated Adjusted
EBITDA, determined as of the end of each fiscal quarter set forth below, to be
less than the amount set forth opposite such fiscal quarter:

     

    

    
      
        
          
            	
                    Fiscal Quarter

                  	 	
                    Minimum Consolidated

                    Adjusted EBITDA

                  	 
	
                    Fiscal
      quarter ending March 31, 2009, as calculated for the fiscal quarter then
      ending

                  	 	$	-
      25,000,000	 
	
                    Fiscal
      quarter ending June 30, 2009, as calculated for the two consecutive fiscal
      quarters then ending

                  	 	$	-
      22,000,000	 
	
                    Fiscal
      quarter ending September 30, 2009, as calculated for the three consecutive
      fiscal quarters then ending

                  	 	$	-
      14,000,000	 
	
                    Fiscal
      quarter ending December 31, 2009, as calculated for the four consecutive
      fiscal quarters then ending

                  	 	$	1,750,000	 
	
                    Fiscal
      quarter ending March 31, 2010 and each fiscal quarter thereafter, as
      calculated for the four consecutive fiscal quarters then
      ending

                  	 	$	35,000,000	 

          

        

      

    

    

    Section
10.12      Capital
Expenditures.  The Company will not permit or suffer
Consolidated Capital Expenditures in excess of (i) $30,000,000 for the fiscal
quarter ending March 31, 2009, (ii) $65,000,000 for the fiscal year ending March
31, 2010, or (iii) $70,000,000 for any fiscal year ending thereafter; in each
case in addition to any replacement or rebuilding of any real property or
equipment from the Net Proceeds from any Event of Loss of real property or
equipment as provided in clause (v) of the definition of Excluded
Sales.

    
      
         

      

      
        Annex
I-6

        
          

        

      

      
         

      

    

    Section
10.13       Restricted
Payments.  The Company will not, nor will it permit any
Subsidiary to, declare or make any Restricted Payment except any Subsidiary may
declare and pay dividends or make distributions to the Company or to a
Wholly-Owned Subsidiary.  The Company will not issue any Disqualified
Stock.

     

    Section
10.14       Loans or Advances. Neither
the Company nor any of its Subsidiaries shall make loans or advances to any
Person except:

     

    (a)            [Intentionally
Omitted];

     

    (b)           
deposits required by government agencies or public utilities;

     

    (c)           
existing loans or advances between the Company and its Subsidiaries and between
Subsidiaries described on Schedule 10.14 hereto, but no
increase in the amount thereof (except to the extent increased amounts are
permitted under another clause of this Section 10.14);

     

    (d)      
     loans or advances from any Foreign Subsidiaries to
the Company or any Subsidiary Guarantor, provided that such loans and advances
are evidenced by documents satisfactory to the Required Holders and are
subordinated to all Secured Obligations on terms and by agreements satisfactory
to the Required Holders;

     

    (e)      
     loans and advances between the Company and the
Subsidiary Guarantors, provided that such loans and advances are evidenced by
documents satisfactory to the Required Holders; and

     

    (f)    
       loans and advances between Foreign
Subsidiaries, provided that such loans and advances are (i) evidenced by
documents satisfactory to the Required Holders and (ii) if such loans and
advances are owing by a Foreign Subsidiary that is a borrower under the Credit
Agreement or any Foreign Subsidiary guaranteeing the Secured Obligations of such
Foreign Subsidiary that is a borrower under the Credit Agreement, subordinated
to all Secured Obligations owing by such Foreign Subsidiary that is a borrower
under the Credit Agreement on terms and by agreements satisfactory to the
Required Holders; and

     

    (g)           other
loans and advances made in the ordinary course of business not exceeding
$10,000,000 in the aggregate at any time outstanding;

     

    provided
that after giving effect to the making of any loans, advances or deposits
permitted by clause (a), (b), (c), (d), (e), (f) or (g) of this Section 10.14, no Default or
Event of Default shall have occurred and be continuing. Notwithstanding anything
herein to the contrary, the Company will not, nor will it permit any Subsidiary
to, make any loans and advances to Modine Korea, any member of the Modine
Holding Consolidated Group or any Domestic Subsidiary that is not a Subsidiary
Guarantor at any time on or after the Second Amendment Effective Date, provided
that this provision shall not restrict loans and advances between members of the
Modine Holding Consolidated Group.

    
      
         

      

      
        Annex
I-7

        
          

        

      

      
         

      

    

    Section
10.15       Investments and
Acquisitions.

     

    (a)           The
Company will not, nor will it permit any Subsidiary to, make or suffer to exist
any Investments (including without limitation, loans and advances to, and other
Investments in, Subsidiaries), or commitments therefor, or to create any
Subsidiary or to become or remain a partner in any partnership or joint venture,
or to make any Acquisition of any Person, except:

     

    (i)      
      Cash Equivalent Investments.

     

    (ii)         
  (x) Existing Investments in Subsidiaries, but no increase in the
amount thereof and (y) other Investments described in Schedule 10.15, but
no increase in the amount thereof, as reduced from time to time.

     

    (iii)           Investments
comprised of capital contributions (whether in the form of cash, a note, or
other assets) to a Subsidiary or other special-purpose entity created solely to
engage in a Qualified Receivables Transaction.

     

    (iv)           Swap
Contracts; provided,
that any transactions under any Swap Contract shall be entered into to
hedge a risk exposure in the ordinary course of business of the Company or a
Subsidiary and not for speculative purposes.

     

    (v)           Loans
and advances permitted by Section 10.14.

     

    (b)           The
Company and its Subsidiaries may make and have outstanding other Investments,
provided that (i) no Default or Event of Default exists at the time such
Investment is made or would be caused thereby and (ii) at no time shall the
aggregate outstanding amount of all such other Investments existing and
permitted under this Section
10.15(b) exceed $1,000,000.

     

    Notwithstanding
anything herein to the contrary, the Company will not, nor will it permit any
Subsidiary to, make any Investments (including without limitation, loans and
advances to, and other Investments) to Modine Korea, any member of the Modine
Holding Consolidated Group or any Domestic Subsidiary that is not a Subsidiary
Guarantor at any
time on or after the Second Amendment Effective Date, provided that this
provision shall not restrict Investments between members of the Modine Holding
Consolidated Group.

    

    Section
10.16       Dissolution.  Neither
the Company nor any of its Subsidiaries shall suffer or permit dissolution or
liquidation either in whole or in part or redeem or retire any shares of its own
stock or that of any Subsidiary, except through corporate reorganization to the
extent permitted by Sections
10.5, 10.6 and 10.8.

    
      
         

      

      
        Annex
I-8

        
          

        

      

      
         

      

    

    Section
10.17       Optional Payments and Modification of
Debt. 

     

    (a)           The
Company will not, nor will it permit any Subsidiary to, (i) reduce the
commitment of the lenders under the Credit Agreement to make loans, issue
letters of credit or provide other credit facilities, other than reductions to
such commitments after the Second Amendment Effective Date in an aggregate
amount not to exceed at any time the sum of (1) the aggregate amount of
prepayments of the principal amount of the Advances (as defined in the Credit
Agreement as in effect on the Second Amendment Effective Date) made pursuant to
Section 9.12 plus (2) 38.524590163% of the
aggregate amount of all payments made to the Collateral Agent pursuant to Section 9.12 plus (3) an
amount not to exceed $15,000,000 equal to the amount by which the dollar
equivalent of the Euro amount of any credit facility of facilities (based on
commitments) entered into by the Modine Holding Consolidated Group exceeds
$5,000,000, and, (ii) shorten the maturity or termination date of any loans or
other credit facilities of the Company or any Subsidiary under the Credit
Agreement; (iii) amend or otherwise modify Section 2.3(c) or (d) of the Credit
Agreement as in effect on the Second Amendment Effective Date, (iv) enter into
any agreement restricting the ability of the Company and its Subsidiaries to
amend or modify this Agreement or any other Transaction Document, except as
provided in the Credit Agreement as in effect on the Second Amendment Effective
Date; (v) enter into any agreement or arrangement requiring any defeasance of
any kind of any Debt under the Credit Agreement or any of the other Loan
Documents (as defined in the Credit Agreement) or (vi) pay or agree to pay any
fee, interest or other compensation or consideration (other than as required
under the Credit Agreement and the Loan Documents (as defined in the Credit
Agreement) delivered to the holders prior to the Second Amendment Effective
Date) to the Bank Agent or any Bank.

     

    (b)           The
Company will not, nor will it permit any Subsidiary to, (i) make any optional
payment, defeasance (whether a covenant defeasance, legal defeasance or other
defeasance), prepayment, repurchase (including without limitation any offer to
repurchase) or other optional redemption of any Debt under 2005 Note Purchase
Agreement, (ii) enter into any agreement or arrangement requiring any defeasance
of any kind of any Debt under the 2005 Note Purchase Agreement or (iii) pay or
agree to pay any fee, interest or other compensation or consideration (other
than as required under the 2005 Note Purchase Agreement and the Transaction
Documents (as defined in the 2005 Note Purchase Agreement) delivered to the
holders prior to the Second Amendment Effective Date) to any holder of notes
outstanding under the 2005 Note Purchase Agreement; unless in each case,
and concurrently therewith, the Company makes an optional payment, defeasance,
prepayment, repurchase or other optional redemption of the Notes, or pays a fee,
interest or other compensation or consideration to the holders of the Notes, in
each case in a pro rata amount in proportion to the respective outstanding
principal amounts of the Notes and the Debt under 2005 Note Purchase Agreement
immediately prior thereto.

     

    Section
10.18       Communications with
Accountants.  The Company authorizes each holder to communicate
directly with its independent certified public accountants and authorizes and
shall instruct those accountants and advisors to communicate to the each holder
information relating to the Company and its Subsidiaries with respect to the
business, results of operations and financial condition of the Company or any of
its Subsidiaries.

    
      
         

      

      
        Annex
I-9

        
          

        

      

      
         

      

    

    Section
10.19       Deposit Accounts.  The Company
shall, and shall cause each of its Domestic Subsidiaries to, maintain a Lender
(as defined in the Credit Agreement) or any of their respective Affiliates as
their sole depository bank, including for the maintenance of all operating,
administrative, cash management, collection activity, and other deposit accounts
for the conduct of their respective businesses, provided that with respect to
all operating, administrative, cash management, collection activity, and other
deposit accounts of the Company and the Domestic Subsidiaries, the Company shall
have up to 60 days after the Second Amendment Effective Date (or such later date
agreed to by the Required Holders) to comply with the terms of this Section 10.19, provided that
for administrative convenience the Company may maintain existing local deposit
accounts at all times thereafter, not to exceed $100,000 in aggregate amount for
all such accounts of the Company and its Domestic Subsidiaries.

     

    Section
10.20       Restrictive Agreements. The
Company will not, and will not permit any of its Subsidiaries to, directly or
indirectly, enter into, incur or permit to exist any agreement or other
arrangement that prohibits, restricts or imposes any condition upon the ability
of any Subsidiary to pay dividends or other distributions with respect to any of
its Equity Interests or to make or repay loans or advances to the Company or any
other Subsidiary; provided that the foregoing shall not apply to: (a)
restrictions and conditions imposed on the Modine Holding Consolidated Group in
connection with Debt permitted under Section 10.2(g), (b) restrictions and
conditions imposed in connection with a material economic benefit provided to
any Foreign Subsidiary by a governmental authority, (c) restrictions in the
Credit Agreement and the 2005 Note Agreement, each as in effect on the Second
Amendment Effective Date and (d) restrictions and conditions imposed by
law.

     

    Section
10.21       Environmental Matters. The
Company will not, and will not permit any other Person to, use, produce,
manufacture, process, generate, store, dispose of, manage at, or ship or
transport to or from any of its property any Hazardous Materials except for
Hazardous Materials disclosed on Schedule 10.21 hereto and by this reference
made a part hereof and which are used, produced, manufactured, processed,
generated, stored, disposed of or managed in the ordinary course of business in
compliance with all applicable Environmental Laws, except where such
non-compliance would not have a Material Adverse Effect.  The Company
agrees that upon the occurrence of an Environmental Release it will act
immediately to investigate the extent of, and to take appropriate remedial
action to eliminate, such Environmental Release, whether or not ordered or
otherwise directed to do so.  Promptly, and in any event within 15
Business Days after the Company obtains knowledge thereof, the Company shall
furnish to the holders written notice of all material Environmental Liabilities,
pending, threatened or anticipated material Environmental Proceedings, and
material Environmental Releases at, on, in, under or in any way affecting it,
any Subsidiary or any of its or their property or any adjacent property, and all
facts, events, or conditions that could lead to any of the
foregoing.

     

    Section
10.22       Change in Fiscal
Year.  The Company will not change its fiscal year (including
any of its fiscal quarters) without (a) providing the holders with prior written
notice of such change; and (b) executing and delivering to the holders, prior to
such change, such amendments to this Agreement and the other Transaction
Documents as the holders may reasonably deem necessary and appropriate as a
result of such change in fiscal year.

    
      
         

      

      
        Annex
I-10

        
          

        

      

      
         

      

    

    Section
10.23       Sale of
Accounts.  The Company will not, nor will it permit any
Subsidiary to, sell or otherwise dispose of any notes receivable or accounts
receivable, with or without recourse, except (a) sale or assignment of accounts
for collection purposes in the ordinary course of business, (b) sale or
assignment of trade notes receivable or accounts receivable of the Company’s
Foreign Subsidiaries in the ordinary course of business provided that the
aggregate outstanding amount thereof does not exceed $15,000,000 (based on the
amount of obligations outstanding under the legal documents entered into as part
of such sales or assignments that would be characterized as principal if such
sales or assignments were structured as a secured lending transaction rather
than as a sale or assignment), and (c) Qualified Receivables
Transactions.

    
      
         

      

      
        Annex
I-11

        
          

        

      

      
         

      

    

    ANNEX
II

    

    DEFINED
TERMS

     

    As used
herein, the following terms have the respective meanings set forth below or set
forth in the Section hereof following such term:

     

    “Acquisition” means any
transaction, or any series of related transactions, consummated on or after the
date of this Agreement, by which the Company or any of its Subsidiaries (i)
acquires any going business or all or substantially all of the assets of any
firm, corporation or limited liability company, or division thereof, whether
through purchase of assets, merger or otherwise or (ii) directly or indirectly
acquires (in one transaction or as the most recent transaction in a series of
transactions) at least a majority (in number of votes) of the securities of a
corporation which have ordinary voting power for the election of directors
(other than securities having such power only by reason of the happening of a
contingency) or a majority (by percentage or voting power) of the outstanding
ownership interests of a partnership or limited liability company.

     

    “Additional Covenant” shall
mean any affirmative or negative covenant or similar restriction applicable to
the Company or any Subsidiary (regardless of whether such provision is labeled
or otherwise characterized as a covenant) the subject matter of which either (i)
is similar to that of any covenant in Section 9 or 10 of this Agreement, or
related definitions in Schedule B to this Agreement, but contains one or more
percentages, amounts or formulas that is more restrictive than those set forth
herein or more beneficial to the lender under any agreement with respect to any
Debt of the Company or such Subsidiary or any agreement for the refinancing or
extension of all or a portion of the Debt thereunder (and such covenant or
similar restriction shall be deemed an Additional Covenant only to the extent
that it is more restrictive or more beneficial) or (ii) is different from the
subject matter of any covenants in Section 9 or 10 of this Agreement, or
related definitions in Schedule B to this Agreement.

    

    “Additional Default” shall
mean any provision contained in any agreement with respect to any Debt of the
Company or any Subsidiary or any agreement for the refinancing or extension of
all or a portion of the Debt thereunder which permits the holders of such Debt
to accelerate (with the passage of time or giving of notice or both) the
maturity thereof or otherwise requires the Company or any Subsidiary to purchase
the Debt thereunder or any agreement for the refinancing or extension of all or
a portion of the Debt thereunder prior to the stated maturity thereof and which
either (i) is similar to any Default or Event of Default contained in Section 11 of this Agreement,
or related definitions in Schedule B to this Agreement, but contains one or more
percentages, amounts or formulas that is more restrictive or has a shorter grace
period than those set forth herein or is more beneficial to the lender under any
agreement with respect to any Debt of the Company or such Subsidiary or any
agreement for the refinancing or extension of all or a portion of the
Indebtedness thereunder (and such provision shall be deemed an Additional
Default only to the extent that it is more restrictive, has a shorter grace
period or is more beneficial) or (ii) is different from the subject matter of
any Default or Event of Default contained in Section 11 of this Agreement,
or related definitions in Schedule B to this Agreement.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    “Affiliate” means, at any
time, and with respect to any Person, any other Person that at such time
directly or indirectly through one or more intermediaries Controls, or is
Controlled by, or is under common Control with, such first Person, and with
respect to the Company, shall include any Person beneficially owning or holding,
directly or indirectly, 10% or more of any class of voting or equity interests
of the Company or any Subsidiary or any corporation of which the Company and its
Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly,
10% or more of any class of voting or equity interests.  As used in
this definition, “Control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the management and
policies of a Person, whether through the ownership of voting securities, by
contract or otherwise.  Unless the context otherwise clearly requires,
any reference to an “Affiliate” is a reference to an
Affiliate of the Company.

     

    “Airedale Entity” and “Airedale Entities” are
defined in Section
5.20.

     

    “Anti-Terrorism Order” means
Executive Order No. 13,224 of September 24, 2001, Blocking Property and
Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support
Terrorism, 66 U.S. Fed. Reg, 49, 079 (2001), as amended.

     

    “Applicable Rate” shall mean
(a) until the Second Amendment Effective Date, 5.68% and (b) on and after the
Second Amendment Effective Date (i) during a Credit Rating Adjustment Period and
provided no Default or Event of Default has occurred and is continuing, 8.25%
and (ii) 10.75% at all other times.

     

    “Bank Agent” means JPMorgan
Chase Bank, N.A., in its capacity as agent under the Credit Agreement, and its
successors and assigns in that capacity.

     

    “Banks” means JPMorgan Chase
Bank, N.A., Bank of America, N.A., M&I Marshall & Ilsley Bank, Wells
Fargo Bank, N.A., Dresdner Bank AG, U.S. Bank, National Association, Comerica
Bank and the other lending parties to the Credit Agreement from time to time,
and their respective successors and assigns from time to time.

     

    “Brazil Holdback” means the
contingent obligation of the Company to the former owners of Modine do Brasil
Sistemas Termicos Ltda. in the amount of $2,000,000.

     

    “Business Day” means (a) for
the purposes of Section 8.6
only, any day other than a Saturday, a Sunday or a day on which
commercial banks in New York City are required or authorized to be closed, and
(b) for the purposes of any other provision of this Agreement, any day other
than a Saturday, a Sunday or a day on which commercial banks in Chicago,
Illinois or New York, New York are required or authorized to be
closed.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “Capital Expenditures” means
for any period all direct or indirect (by way of acquisition of securities of a
Person or the expenditure of cash or the transfer of property or the incurrence
of Debt) expenditures in respect of the purchase or other acquisition of fixed
or capital assets determined in conformity with GAAP.

     

    “Capital Lease” means, at any
time, a lease with respect to which the lessee is required concurrently to
recognize the acquisition of
an asset and the incurrence of a liability in accordance with
GAAP.

     

    “Cash Equivalent Investments”
means (i) short-term obligations of, or fully guaranteed by, the United States
of America, (ii) with respect to Investments of a Foreign Subsidiary only,
direct obligations of such Foreign Subsidiary’s Domestic National Government
maturing within one year, (iii) commercial paper rated A-1 or better by S&P
or P-1 or better by Moody’s, (iv) demand deposit accounts maintained in the
ordinary course of business, (v) certificates of deposit issued by and time
deposits with commercial banks (whether domestic or foreign) having capital and
surplus in excess of $100,000,000, and (vi) repurchase agreements or like
investment vehicles, in each case rated A-1 or better by S&P or P-1 or
better by Moody’s and having a maturity date not greater than 270 days; provided
in each case that the same provides for payment of both principal and interest
(and not principal alone or interest alone) and is not subject to any
contingency regarding the payment of principal or interest.

     

    “Change in Control” is
defined in Section
8.7.

     

    “Closing” is defined in Section 3.

     

    “Code” means the Internal
Revenue Code of 1986, as amended from time to time, and the rules and
regulations promulgated thereunder from time to time.

     

    “Collateral” shall mean all
assets of the Company and each of its Subsidiaries in which a Lien is required
to be granted to secure the Notes.

     

    “Collateral Agent” means
JPMorgan in its capacity as collateral agent under the Intercreditor Agreement
and the Collateral Documents, and its successor and assigns in that
capacity.

     

    “Collateral Documents” means,
collectively, the Security Agreements, the Mortgages and all other agreements or
documents granting or perfecting a Lien in favor of the Collateral Agent for the
benefit of the Secured Parties under the Intercreditor Agreement or otherwise
providing support for the Secured Obligations at any time, as any of the
foregoing may be amended or modified from time to time.

     

    “Company” means Modine
Manufacturing Company, a Wisconsin corporation.

     

    “Company Financial Advisor”
is defined in Section
15.2.

     

    “Confidential Information” is
defined in Section
20.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    “Consolidated Capital
Expenditures” means, with reference to any period, the Capital
Expenditures of the Company and its Subsidiaries calculated on a consolidated
basis for such period.

     

    “Consolidated Adjusted
EBITDA” means, as to any Person and with reference to any period,
Consolidated EBIT plus, to the extent
deducted in determining Consolidated Net income, depreciation and amortization,
all calculated for such Person and its Subsidiaries on a consolidated
basis.  “Consolidated Adjusted EBITDA” for any period, as to any
Person, shall be calculated to be the actual amount for such period for such
Person and its Subsidiaries; provided, upon the consummation of any Acquisition,
for calculations made from and after such Acquisition, Consolidated Adjusted
EBITDA shall be calculated on a pro forma basis including the target’s
historical Consolidated Adjusted EBITDA for the applicable period using
historical financial statements obtained from the seller, broken down by fiscal
quarter in such Person’s reasonable judgment (the amounts from which may be
adjusted solely as may be necessary to comply with GAAP).

     

    “Consolidated EBIT” means, as
to any Person and with reference to any period, Consolidated Net Income plus, to the extent
deducted from revenues in determining Consolidated Net Income, (i) Consolidated
Interest Expense, (ii) expense for federal, state, local and foreign income and
franchise taxes paid or accrued and (iii) extraordinary losses incurred other
than in the ordinary course of business, minus, to the extent
included in Consolidated Net Income, extraordinary gains realized other than in
the ordinary course of business, all calculated for such Person and its
Subsidiaries on a consolidated basis.

     

    “Consolidated Net Income”
means, as to any Person and with reference to any period, the net income
(or loss) of such Person and its Subsidiaries calculated on a consolidated basis
for such period, (a) excluding (i) any non-cash charges or gains which are
unusual, non-recurring or extraordinary, (ii) any non-cash charges or gains
related to exchange gains or losses on intercompany loans or to the Brazil
Holdback, (iii) for purposes of Sections 10.1, 10.3, 10.11 and
10.12 only, Restructuring Charges subject to the limits set forth in the
definition of Restructuring Charges, and (iv) fees and expenses incurred by or
for the account of the Company with respect to any Financial Advisor engaged
pursuant to Sections
15.2 and 15.3 or
pursuant to Section 9.6(d) or (e) of the Credit Agreement; and (b) including, to
the extent not otherwise included in the determination of Consolidated Net
Income, all cash dividends and cash distributions received by the Company or any
Subsidiary from any Person in which the Company or such Subsidiary has made an
investment; provided, however, that for any
calculation of Consolidated Net Income for any period commencing on or after
April 1, 2009, Modine Korea shall not be included as a Subsidiary of the
Company.

     

    “Consolidated Total Assets”
means as of the date of any determination thereof, total assets of the
Company and its Subsidiaries determined on a consolidated basis in accordance
with GAAP.

     

    “Consolidated Total Debt”
means, at any time, all Debt of the Company and its Subsidiaries that
would be reflected on a consolidated balance sheet of the Company prepared in
accordance with GAAP at such time, including Receivables Transaction Attributed
Indebtedness of any Subsidiary or other Person to whom interests in accounts,
notes receivable and rights related thereto have been sold, conveyed or
otherwise transferred by the Company or any Subsidiary in connection with a
Qualified Receivables Transaction, whether or not such Subsidiary or other
Person is consolidated with the Company under GAAP.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    “Credit Agreement” means the
Amended and Restated Credit Agreement, dated as of July 18, 2008, among the
Company, the Foreign Subsidiaries named therein, the Bank Agent and the Banks,
and as further amended, restated, supplemented or otherwise modified from time
to time.

     

    “Credit Rating Adjustment
Period” means any period during which the Company’s long-term unsecured
and non-credit enhanced indebtedness is rated not less than “BBB” by S&P,
Fitch or DBRS or not less than “Baa2” by Moody’s, and evidence thereof, in form
and substance satisfactory to the Required Holders, shall have been delivered to
the holders of the Notes.

     

    “DBRS” means Dominion Bond Rating
Agency or any successor thereto.

     

    “Debt” with respect to any
Person mean, at any time, without duplication,

     

    (a)           its
liabilities for borrowed money and its redemption obligations in respect of
mandatorily redeemable Preferred Stock;

     

    (b)           its
liabilities for the deferred purchase price of property acquired by such Person
(excluding accounts payable arising in the ordinary course of business but
including all liabilities created or arising under any conditional sale or other
title retention agreement with respect to any such property);

     

    (c)           (i)
all liabilities appearing on its balance sheet in accordance with GAAP in
respect of Capital Leases and (ii) all liabilities which would appear on its
balance sheet in accordance with GAAP in respect of Synthetic Leases assuming
such Synthetic Leases were accounted for as Capital Leases;

     

    (d)           all
liabilities for borrowed money secured by any Lien with respect to any property
owned by such Person (whether or not it has assumed or otherwise become liable
for such liabilities);

     

    (e)           all
its liabilities in respect of letters of credit or instruments serving a similar
function issued or accepted for its account by banks and other financial
institutions (whether or not representing obligations for borrowed
money);

     

    (f)     
      the aggregate Swap Termination Value of all
Swap Contracts of such Person; and

     

    (g)  
         Receivables Transaction
Attributed Indebtedness of such Person; and

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (h)           any
Guaranty of such Person with respect to liabilities of a type described in any
of clauses (a) through (g) hereof.

     

    “Default” means an event or
condition the occurrence or existence of which would, with the lapse of time or
the giving of notice or both, become an Event of Default.

     

    “Default Rate” means that
rate of interest that is the greater of (i) 2.0% per annum above the rate of
interest stated in clause (a) of the first paragraph of the Notes or (ii) 2.0%
over the rate of interest publicly announced by JPMorgan Chase Bank, N.A. in New
York, New York as its “base” or “prime” rate.

     

    “Disclosure Documents” is
defined in Section
5.3.

     

    “Disqualified Stock” means
any Equity Interests that, by its terms (or by the terms of any security into
which it is convertible or for which it is exchangeable), or upon the happening
of any event, matures or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or redeemable at the option of the holder thereof, in
whole or in part prior to a date one year after December 7, 2017.

     

    “Domestic National Government”
means, with respect to a Foreign Subsidiary, the national government of
the country in which the Foreign Subsidiary’s principal place of business is
located.

     

    “Domestic Subsidiary” means
each Subsidiary of the Company that is organized under the laws of the United
States of America or any state, territory or possession thereof.

     

    “Electronic Delivery” is
defined in Section
7.1(a).

     

    “Environmental Laws” means
any and all Federal, state, local, and foreign statutes, laws, regulations,
ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to
pollution and the protection of the environment or the release of any materials
into the environment, including but not limited to those related to Hazardous
Materials.

     

    “Environmental Liabilities”
means all liabilities (including anticipated compliance costs) in connection
with or relating to the business, assets presently or previously owned, leased
or operated property, activities (including, without limitation, off-site
disposal) or operations of the Company and each of its Subsidiaries, whether
vested or unvested, contingent or fixed, actual or potential, known or unknown,
which arise under or relate to matters covered by Environmental
Laws.

     

    “Environmental Proceeding”
means any judicial or administrative proceeding arising from or in any way
associated with any Environmental Law.

     

    “Environmental Release” means
releases as defined in CERCLA or under any other Environmental
Law.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    “Equity Interests” means (i)
in the case of any corporation, all capital stock and any securities
exchangeable for or convertible into capital stock and any warrants, rights or
other options to purchase or otherwise acquire capital stock or such securities
or any other form of equity securities, (ii) in the case of an association or
business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock, (iii) in the case of a
partnership or limited liability company, partnership or membership interests
(whether general or limited) and (iv) any other interest or participation that
confers on a Person the right to receive a share of the profits and losses of,
or distributions of assets of, the issuing Person.

     

    “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended from time to time, and the
rules and regulations promulgated thereunder from time to time in
effect.

     

    “ERISA Affiliate” means any
trade or business (whether or not incorporated) that is treated as a single
employer together with the Company under Section 414 of the Code.

     

    “Event of Default” is defined
in Section
11.

     

    “Event of Loss” means, with
respect to any property of the Company and its Subsidiaries, any loss,
destruction or damage of such property or any condemnation, seizure or taking,
by exercise of the power of eminent domain or otherwise, of such property, or
confiscation of such property or the requisition of the use of such
property.

     

    “Exchange Act” means the
Securities Exchange Act of 1934, as amended from time to time, and the rules and
regulations promulgated thereunder from time to time in effect.

     

    “Excluded Sales” is defined in Section 9.12.

     

    “Fitch” shall mean Fitch,
Inc. or any successor thereto.

     

    “Foreign Subsidiary” means
each Subsidiary that is not a Domestic Subsidiary.

     

    “Form 10-K” is defined in
Section
7.1(b).

     

    “Form 10-Q” is defined in
Section
7.1(a).

     

    “GAAP” means generally
accepted accounting principles as in effect from time to time in the United
States of America.

     

    “Governmental Authority”
means

     

    (a)      
     the government of The United States of America or
any State or other political subdivision thereof, or

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (b)           any
other jurisdiction in which the Company or any Subsidiary conducts all or any
part of its business, or which asserts jurisdiction over any properties of the
Company or any Subsidiary, or

     

    (c)           any
entity exercising executive, legislative, judicial, regulatory or administrative
functions of, or pertaining to, any such government.

     

    “Guaranty” means, with
respect to any Person, any obligation (except the endorsement in the ordinary
course of business of negotiable instruments for deposit or collection) of such
Person guaranteeing or in effect guaranteeing any indebtedness, dividend or
other obligation of any other Person in any manner, whether directly or
indirectly, including (without limitation) obligations incurred through an
agreement, contingent or otherwise, by such Person:

     

    (a)           to
purchase such indebtedness or obligation or any property constituting security
therefor;

     

    (b)           to
advance or supply funds (i) for the purchase or payment of such indebtedness or
obligation, or (ii) to maintain any working capital or other balance sheet
condition or any income statement condition of any other Person or otherwise to
advance or make available funds for the purchase or payment of such indebtedness
or obligation;

     

    (c)           to
lease properties or to purchase properties or services primarily for the purpose
of assuring the owner of such indebtedness or obligation of the ability of any
other Person to make payment of the indebtedness or obligation; or

     

    (d)           otherwise
to assure the owner of such indebtedness or obligation against loss in respect
thereof.

     

    In any
computation of the indebtedness or other liabilities of the obligor under any
Guaranty, the indebtedness or other obligations that are the subject of such
Guaranty shall be assumed to be direct obligations of such obligor.

     

    “Hazardous Material” means
any and all pollutants, toxic or hazardous wastes or any other substances,
including all substances listed in or regulated in any Environmental law that
might pose a hazard to health and safety, the removal of which may be required
or the generation, manufacture, refining, production, processing, treatment,
storage, handling, transportation, transfer, use, disposal, release, discharge,
spillage, seepage, or filtration of which is or shall be restricted, regulated,
prohibited or penalized by any applicable law including, but not limited to,
asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls,
petroleum, petroleum products, lead based paint, radon gas or similar
restricted, prohibited or penalized substances.

     

    “holder” means, with respect
to any Note, the Person in whose name such Note is registered in the register
maintained by the Company pursuant to Section 13.1.

     

    “Institutional Investor” means
(a) any Purchaser of a Note, (b) any holder of a Note holding (together with one
or more of its affiliates) more than 5% of the aggregate principal amount of the
Notes then outstanding, (c) any bank, trust company, savings and loan
association or other financial institution, any pension plan, any investment
company, any insurance company, any broker or dealer, or any other similar
financial institution or entity, regardless of legal form, and (d) any Related
Fund of any holder of any Note.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    “Intercreditor Agreement”
means the Collateral Agency and Intercreditor Agreement among the
Collateral Agent and the Secured Parties, dated as of the Second Amendment
Effective Date, as amended, restated, supplemented or modified from time to time
in accordance with the terms thereof.

     

    “Investment” of a Person
means any loan, advance (other than commission, travel and similar advances to
officers and employees made in the ordinary course of business), extension of
credit (other than accounts receivable arising in the ordinary course of
business on terms customary in the trade) or contribution of capital by such
Person; stocks, bonds, mutual funds, partnership interests, notes, debentures or
other securities owned by such Person; any deposit accounts and certificates of
deposit owned by such Person; and structured notes, derivative financial
instruments and other similar instruments or contracts owned by such
Person.

     

    “January 2009 Financial
Forecasts” means the financial forecasts provided to the holders by the
Company on January 25, 2009 and the Quarterly EBITDA Sensitivity Analysis
provided to the holders by the Company on February 5, 2009.

     

    “Lien” means, with respect to
any Person, any mortgage, lien, pledge, charge, security interest or other
encumbrance, or any interest or title of any vendor, lessor, lender or other
secured party to or of such Person under any conditional sale or other title
retention agreement or Capital Lease, upon or with respect to any property or
asset of such Person (including in the case of stock, stockholder agreements,
voting trust agreements and all similar arrangements).

     

    “Make-Whole Amount” is
defined in Section
8.6.

     

    “Material” means material in
relation to the business, operations, affairs, financial condition, assets or
properties of the Company and its Subsidiaries taken as a whole.

     

    “Material Adverse Effect”
means a material adverse effect on (a) the business, operations, affairs,
financial condition, assets, or properties of the Company and its Subsidiaries
taken as a whole, or (b) the ability of the Company to perform its obligations
under this Agreement, the Notes or any other Transaction Document to which it is
a party, or (c) the validity or enforceability of this Agreement, the Notes, the
Subsidiary Guaranty or any other Transaction Document.

     

    “Memorandum” is defined in
Section
5.3.

     

    “Modine Holding Consolidated Group”
means Modine Holding GmbH and its Subsidiaries existing as of the Second
Amendment Effective Date.

    
      
         

      

      
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    “Modine Korea” means Modine
Korea, LLC, a wholly owned Subsidiary of the Company.

     

    “Moody’s” mean Moody's
Investors Services, Inc., including the NCO/Moody's Commercial Division, or any
successor Person.

     

    “Mortgaged Properties” shall
mean the real, personal and mixed properties subject to any
Mortgage.

     

    “Mortgages” means each
mortgage, deed of trust and similar agreement and any other agreement from the
Company or any Subsidiary Guarantor granting a Lien on any of its real property,
each in form and substance acceptable to the Required Holders and as amended or
modified from time to time, entered into by the Company or any Subsidiary
Guarantor at any time for the benefit of the Collateral Agent and the Secured
Parties pursuant to this Agreement or the Intercreditor Agreement.

     

    “Multiemployer Plan” means
any Plan that is a “multiemployer plan” (as such term is defined in section
4001(a)(3) of ERISA).

     

    “NAIC” means the National
Association of Insurance Commissioners or any successor thereto.

     

    “Net Cash Proceeds” means,
without duplication, in connection with any issuance of any Equity Interests or
any sale, license, lease or other disposition of any asset or any settlement by,
or receipt of payment in respect of, any property insurance claim or
condemnation award, the cash proceeds (including any cash payments received by
way of deferred payment of principal pursuant to a note or installment
receivable or purchase price adjustment receivable or otherwise, but only as and
when received) of such issuance, sale, settlement or payment, net of (i) direct
costs relating solely to such issuance, sale, other disposition or settlement,
including sales commissions and reasonable and documented attorneys’ fees,
accountants’ fees, investment banking fees, and other customary fees and
expenses actually incurred in connection therewith, (ii) amounts required to be
applied to the repayment of Debt secured by a Lien expressly permitted hereunder
on any asset which is the subject of such sale, insurance claim or condemnation
award (other than any Lien in favor of the Collateral Agent for the benefit of
the Collateral Agent and the Secured Parties) and (iii) taxes paid or reasonably
estimated to be payable as a result thereof.

     

    “Notes” is defined in Section 1.

     

    “Officer’s Certificate” means
a certificate of a Senior Financial Officer or of any other officer of the
Company whose responsibilities extend to the subject matter of such
certificate.

     

    “PBGC” means the Pension
Benefit Guaranty Corporation referred to and defined in ERISA or any successor
thereto.

    
      
         

      

      
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    “Person” means an individual,
partnership, corporation, limited liability company, association, trust,
unincorporated organization, business entity or Governmental
Authority.

     

    “Plan” means an “employee
benefit plan” (as defined in section 3(3) of ERISA) subject to Title I of ERISA
that is or, within the preceding five years, has been established or maintained,
or to which contributions are or, within the preceding five years, have been
made or required to be made, by the Company or any ERISA Affiliate or with
respect to which the Company or any ERISA Affiliate may have any
liability.

     

    “Preferred Stock” means any
class of capital stock of a Person that is preferred over any other class of
capital stock (or similar equity interests) of such Person as to the payment of
dividends or the payment of any amount upon liquidation or dissolution of such
Person.

     

    “property” or “properties” means, unless
otherwise specifically limited, real or personal property of any kind, tangible
or intangible, choate or inchoate.

     

    “Proposed Prepayment Date” is
defined in Section
8.7.

     

    “Purchaser” is
defined in the first paragraph of this Agreement.

     

    “QPAM Exemption” means
Prohibited Transaction Class Exemption 84-14 issued by the United States
Department of Labor.

     

    “Qualified Institutional Buyer”
means any Person who is a “qualified institutional buyer” within the
meaning of such term as set forth in Rule 144A(a)(1) under the Securities
Act.

     

    “Qualified Receivables
Transaction” means any transaction or series of transactions that may be
entered into by the Company or any Subsidiary pursuant to which the Company or
any Subsidiary may sell, convey or otherwise transfer to a newly-formed
Subsidiary or other special-purpose entity, or any other Person, any accounts or
notes receivable and rights related thereto on a limited recourse basis,
provided that (i) such sale, conveyance or transfer qualifies as a sale under
GAAP and (ii) the aggregate outstanding Receivables Transaction Attributed
Indebtedness for all Qualified Receivables Transactions (including those listed
on Schedule 10.2-A and any other Qualified
Receivables Transaction at any time, but excluding sales or assignments of trade
notes receivable or accounts receivable of the Company’s Foreign Subsidiaries
permitted under Section
10.23(b)) shall not exceed $15,000,000.

     

    “Receivables Transaction Attributed
Indebtedness” means the aggregate amount of obligations outstanding under
the legal documentation entered into as part of any Receivables Transaction on
any date of determination that would be characterized as principal if such
Receivables Transaction were structured as a secured lending transaction rather
than as a purchase.

    
      
         

      

      
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    “Related Fund” means, with
respect to any holder of any Note, any fund or entity that (i) invests in
Securities or bank loans, and (ii) is advised or managed by such holder, the
same investment advisor as such holder or by an affiliate of such holder or such
investment advisor.

     

    “Required Holders” means, at
any time, the holders of at least 51% in principal amount of the Notes at the
time outstanding (exclusive of Notes then owned by the Company or any of its
Affiliates).

     

    “Responsible Officer” means
any Senior Financial Officer and any other officer of the Company with
responsibility for the administration of the relevant portion of this
Agreement.

     

    “Restricted Payment” means,
with respect to any Person, (i) any dividend or other distribution on any shares
of such Person’s capital stock (except dividends payable solely in shares of its
capital stock) or (ii) any Stock Purchase Restricted Payment.

     

    “Restructuring Charges” means
certain cash charges related any restructuring program of the Company and its
Subsidiaries subject to the following limitations:

     

    (a) such charges specifically relate to
the following categories of expense incurred in connection with any such
restructuring: severance and related benefits; contractual salary continuation
with respect to terminated employees, retained restructuring consulting;
equipment transfer; employee outplacement; environmental services; and employee
insurance and benefits continuation.

     

    (b) the aggregate amount of all
Restructuring Charges shall not exceed $14,000,000 for all times after December
31, 2008.

     

    “S&P” means Standard and
Poor's Ratings Group and its successors.

     

    “Sale and Leaseback Transaction”
means any arrangement whereby the Company or any Subsidiary shall sell,
transfer or otherwise dispose of any property owned by the Company or any
Subsidiary to any Person other than the Company or a Subsidiary and thereupon
the Company or any Subsidiary shall lease or intend to lease, as lessee, the
same property or any part thereof.

     

    “SEC” shall mean the
Securities and Exchange Commission of the United States, or any successor
thereto.

     

    “Second Amendment” means the
Second Amendment to this Agreement dated as of the Second Amendment Effective
Date.

     

    “Second Amendment Effective
Date” shall mean February 17, 2009.

     

    “Secured Obligations” means
the “Secured Obligations”, as defined in the Intercreditor
Agreement.

    
      
         

      

      
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    “Secured Parties” shall mean
the “Secured Parties” as defined in the Interecreditor Agreement.

     

    “Securities” or Security” shall have the same
meaning as in Section 2(1) of the Securities Act.

     

    “Securities Act” means the
Securities Act of 1933, as amended from time to time, and the rules and
regulations promulgated thereunder from time to time in effect.

     

    “Security Agreements” means
each security agreement, pledge agreement, pledge and security agreement and
similar agreement and any other agreement from the Company or any Subsidiary
Guarantor granting a Lien on any of its personal property (including without
limitation any Capital Stock owned by the Company or any Subsidiary Guarantor),
each in form and substance acceptable to the Required Holders and as amended or
modified from time to time, entered into by the Company or any Subsidiary
Guarantor at any time for the benefit of the Collateral Agent and the Secured
Parties pursuant to this Agreement or the Intercreditor Agreement.

     

    “Senior Financial Officer”
means the chief financial officer, treasurer or controller of the
Company.

     

    “Series A Notes” is defined
in Section
1.

     

    “Series B Notes” is defined
in Section
1.

     

    “Significant Subsidiary”
means any Subsidiary that, together with its subsidiaries, owns
consolidated total assets with a value of greater than $1,000,000 at any
time.

     

    “Stock Purchase Restricted
Payment” means, with respect to any Person, any net payment declared or
made on account of the purchase, redemption, retirement, acquisition or sale of
(a) any shares of such Person’s capital stock or (b) any option, warrant or
other right to acquire shares of such Person’s capital stock.

     

    “Subsidiary” means, as to any
Person, any other Person in which such first Person or one or more of its
Subsidiaries or such first Person and one or more of its Subsidiaries owns
sufficient equity or voting interests to enable it or them (as a group)
ordinarily, in the absence of contingencies, to elect a majority of the
directors (or Persons performing similar functions) of such second Person, and
any partnership or joint venture if more than a 50% interest in the profits or
capital thereof is owned by such first Person or one or more of its Subsidiaries
or such first Person and one or more of its Subsidiaries (unless such
partnership can and does ordinarily take major business actions without the
prior approval of such Person or one or more of its
Subsidiaries).  Unless the context otherwise clearly requires, any
reference to a “Subsidiary”
is a reference to a Subsidiary of the Company.

     

    “Subsidiary Guarantor” means
Modine, Inc., Modine ECD, Inc. and any Subsidiary which is required to become a
Subsidiary Guarantor pursuant to the requirements of Section 9.8.

    
      
         

      

      
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    “Subsidiary Guaranty” means that certain
Guaranty, dated as of the Second Amendment Effective Date, by Modine, Inc. and
Modine ECD, Inc. in favor of the holders, together with any joinders thereto, as
amended, restated, supplemented or modified from time to time in accordance with
the terms thereof.

     

    “Subsidiary Stock” means,
with respect to any Person, the stock or other equity interests (or any options
or warrants to purchase stock or other equity interests or other Securities
exchangeable for or convertible into stock or other equity interests) of any
subsidiary of such Person.

     

    “Substantial Portion” means,
with respect to the property of the Company and its Subsidiaries, property which
represents more than 15% of the consolidated assets of the Company and its
Subsidiaries or property which is responsible for more than 15% of the
consolidated net revenues of the Company and its Subsidiaries, in each case, as
would be shown in the consolidated financial statements of the Company and its
Subsidiaries as at the beginning of the twelve-month period ending with the
month in which such determination is made (or if financial statements have not
been delivered hereunder for that month which begins the twelve­month
period, then the financial statements delivered hereunder for the quarter ending
immediately prior to that month).

     

    “SVO” means the Securities
Valuation Office of the NAIL or any successor to such Office.

     

    “Swap Contract” means (a) any
and all interest rate swap transactions, basis swap transactions, basis swaps,
credit derivative transactions, forward rate transactions, commodity swaps,
commodity options, forward commodity contracts, equity or equity index swaps or
options, bond or bond price or bond index swaps or options or forward foreign
exchange transactions, cap transactions, floor transactions, currency options,
spot contracts or any other similar transactions or any of the foregoing
(including, but without limitation, any options to enter into any of the
foregoing), and (b) any and all transactions of any kind, and the related
confirmations, which are subject to the terms and conditions of, or governed by,
any form of master agreement published by the International Swaps and
Derivatives Association, Inc., any International Foreign Exchange Master
Agreement.

     

    “Swap Termination Value”
means, in respect of any one or more Swap Contracts, after taking into
account the effect of any legally enforceable netting agreement relating to such
Swap Contracts, (a) for any date on or after the date such Swap Contracts have
been closed out and termination value(s) determined in accordance therewith,
such termination value(s), and (b) for any date prior to the date referenced in
clause (a), the amounts(s) determined as the mark-to-market values(s) for such
Swap Contracts, as determined based upon one or more mid-market or other readily
available quotations provided by any recognized dealer in such Swap
Contracts.

     

    “Synthetic Lease” means, at
any time, any lease (including leases that may be terminated by the lessee at
any time) of any property (a) that is accounted for as an operating lease under
GAAP and (b) in respect of which the lessee retains or obtains ownership of the
property so leased for U.S. federal income tax purposes, other than any such
lease under which such Person is the lessor.

    
      
         

      

      
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    “Transaction Documents” means
this Agreement, the Notes, the Subsidiary Guaranties, the Collateral Documents,
the Intercreditor Agreement and any other agreements or instruments executed in
connection herewith at any time.

     

    “2005 Note Purchase Agreement”
means the Note Purchase Agreement dated as of September 29, 2005 between
the Company and the purchasers named therein, as amended to date, and as it may
be further amended, modified, supplemented, restated, refinanced or replaced
from time to time.

     

    “2006 Note Agreement Allocated
Share” means, at any time, a portion equal to a fraction, the numerator
of which is the outstanding principal amount of the Notes, and the denominator
of which is the sum of (a) the outstanding principal amount of the Notes, (a)
the outstanding principal amount of the Notes (as defined in the 2005 Note
Purchase Agreement), and (c) the greater of (i) the Aggregate Outstanding Credit
Exposure (as defined in the Credit Agreement as in effect on the date hereof) at
such time and (ii) the average daily Aggregate Outstanding Credit Exposure (as
defined in the Credit Agreement as in effect on the date hereof) during the
twelve month period immediately prior to such time.

     

    “USA Patriot Act” means
United States Public Law 107-56, Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT)
Act of 2001, as amended from time to time, and the rules and regulations
promulgated thereunder from time to time in effect.

     

    “Wholly-owned Subsidiary”
means, at any time, any Subsidiary one hundred percent (100%) of all of
the equity interests (except directors’ qualifying shares) and voting interests
of which are owned by any one or more of the Company and the Company’s other
Wholly-owned Subsidiaries at such time.

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