Potential Change of Control at Nortek

A restructuring or default under NTK Holdings' indebtedness could result in a change of control of Nortek, which would trigger a requirement to offer to purchase certain notes and could constitute an event of default under Nortek's ABL Facility.

“A restructuring of or default under the indebtedness of NTK Holdings could result in a change of control of Nortek. A change of control may constitute an event of default under Nortek’s ABL Facility and would also require Nortek to offer to purchase its 10% Senior Secured Notes due 2013 and 8 1/2% Senior Subordinated Notes due 2014 at 101% of the principal amount thereof, together with accrued and unpaid interest, and a default of Nortek’s ABL Facility would trigger a cross-default under the indentures governing substantially all of NTK Holdings’ and Nortek’s indebtedness.”

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