Exhibit 10

EXECUTION COPY

 

AMENDMENT NO. 2

TO

CREDIT AGREEMENT

This AMENDMENT NO. 2 TO CREDIT AGREEMENT (this “Amendment”) dated as of October
2, 2007 is among ArvinMeritor, Inc., an Indiana corporation (the “Company”),
ArvinMeritor Finance Ireland, a company organized under the laws of Ireland,
(the “Subsidiary Borrower” and, collectively with the Company, the “Borrowers”),
the financial institutions listed on the signature pages hereto and JPMorgan
Chase Bank, National Association, in its capacity as administrative agent for
itself and the other Lenders (in such capacity, the “Administrative Agent”).
Defined terms used herein and not otherwise defined herein shall have the
meanings given to them in the Credit Agreement.

WHEREAS, the signatories hereto are parties to that certain Credit Agreement,
dated as of June 23, 2006 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among the Borrowers, the
financial institutions from time to time parties thereto (the “Lenders”) and the
Administrative Agent; and

WHEREAS, the Borrowers wish to amend the Credit Agreement in certain respects,
and the Lenders party hereto and the Administrative Agent are willing to amend
the Credit Agreement on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises set forth above, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Borrowers, the Lenders party hereto and the Administrative
Agent agree as follows:

1.          Amendments. Effective as of the date first above written and subject
to the satisfaction of the conditions precedent set forth in Section 2 below,
the Credit Agreement shall be and hereby is amended as follows:

(a)        Section 7.4(A) of the Credit Agreement is hereby amended to delete
therefrom the phrase “(i) 5.00 to 1.00 on the last day of any fiscal quarter
from the Closing Date through and including the fiscal quarter ending on or
about June 30, 2008” and to insert therefor the following phrase:

“(i)(A) 5.00 to 1.00 on the last day of any fiscal quarter from the Closing Date
through and including the fiscal quarter ending December 31, 2007, (B) 5.25 to
1.00 on the last day of the fiscal quarter ending March 31, 2008 and (C) 5.00 to
1.00 on the last day of the fiscal quarter ending June 30, 2008”

 

 

 

--------------------------------------------------------------------------------

 

 

(b)        Section 7.4(B) of the Credit Agreement is hereby amended and restated
in its entirety to read as follows:

“(B) Fixed Charge Coverage Ratio. The Company shall not permit its Fixed Charge
Coverage Ratio, calculated on a consolidated basis for the Company and its
Subsidiaries, to be less than (i) 1.25 to 1.00 on the last day of any fiscal
quarter from the Closing Date through and including the fiscal quarter ending
June 30, 2007, (ii) 1.00 to 1.00 on the last day of the fiscal quarter ending
September 30, 2007, (iii) 0.70 to 1.00 on the last day of the fiscal quarter
ending December 31, 2007 or the fiscal quarter ending March 31, 2008, (iv) 1.00
to 1.00 on the last day of the fiscal quarter ending June 30, 2008, (v) 1.25 to
1.00 on the last day of any fiscal quarter from and including the fiscal quarter
ending September 30, 2008 through and including the fiscal quarter ending June
30, 2009 and (vi) 1.50 to 1.00 on the last day of any fiscal quarter
thereafter.”

(c)        The rows of the Pricing Schedule attached to the Credit Agreement
pertaining to the “Applicable Commitment Fee Percentage,” the “Applicable
Floating Rate Margin (Revolving Loans)” and the “Applicable Eurocurrency Margin
(Revolving Loans) and Applicable L/C Fee Percentage” are hereby amended and
restated in their entirety to read as follows:

RATING

≥ Baa3
and
≥ BBB-

Ba1
and
BB+

Ba2
and
BB

Ba3
and
BB-

<Ba3
or
<BB-

Applicable Commitment Fee Percentage

0.25%

0.30%

0.40%

0.45%

0.50%

Applicable Floating Rate Margin (Revolving Loans)

0.25%

0.75%

1.00%

1.25%

1.50%

Applicable Eurocurrency Margin (Revolving Loans) and Applicable L/C Fee
Percentage

1.25%

1.75%

2.00%

2.25%

2.50%

 

2.          Conditions Precedent. This Amendment shall become effective as of
the date first above written if, and only if, (a) the Administrative Agent has
received (i) duly executed copies of this Amendment from the Borrowers and the
Required Lenders, (ii) duly executed copies of the Reaffirmation in the form of
Attachment A attached hereto from each Subsidiary Guarantor and (iii) for the
ratable account of each Revolving Lender which executes and delivers its
signature page hereto as and when required by the Administrative Agent, an
amendment fee equal to 0.225% of such Revolving Lender’s Revolving Loan
Commitment on the date hereof and (b) the Company shall have paid all fees and
expenses (including, to the

 

2

 

--------------------------------------------------------------------------------

 

extent invoiced, reimbursement of fees and expenses of the Administrative
Agent’s counsels) in connection with this Amendment and the other Loan
Documents.

3.          Representations and Warranties of the Borrowers. The Borrowers
hereby represent and warrant as follows:

(a)        Each Borrower has the corporate or other power and authority and
legal right to execute and deliver this Amendment and to perform its obligations
hereunder and under the Credit Agreement, as amended hereby. The execution and
delivery by each Borrower of this Amendment, and the performance of its
obligations under this Amendment and the Credit Agreement, as amended hereby,
have been duly authorized by proper corporate, partnership or limited liability
company proceedings (or analogous acts in the case of the Subsidiary Borrower).

(b)        This Amendment and the Credit Agreement, as amended hereby,
constitute the legal, valid and binding obligations of each Borrower enforceable
against such Borrower in accordance with their terms, except as such
enforceability may be limited by bankruptcy, insolvency, or similar laws
affecting the enforcement of creditors’ rights generally.

(c)        Neither the execution and delivery by the Borrowers of this
Amendment, nor the consummation of the transactions contemplated herein and in
the Credit Agreement, as amended hereby, nor compliance with the provisions
hereof or thereof will violate any law, rule, regulation, order, writ, judgment,
injunction, decree or award binding on the Company or any of its Subsidiaries or
the Company’s or any Subsidiary’s articles of incorporation or by-laws or
comparable constitutive documents or the provisions of any indenture, instrument
or agreement to which the Company or any of its Subsidiaries is a party or is
subject, or by which it, or its Property, is bound, or conflict with or
constitute a default thereunder, or result in the creation or imposition of any
Lien (other than any Lien permitted by Section 7.3(F) of the Credit Agreement)
in, of or on the Property of the Company or a Subsidiary pursuant to the terms
of any such indenture, instrument or agreement, except any such violation,
conflict or default as would not reasonably be expected to have a Material
Adverse Effect. No order, consent, approval, license, authorization, or
validation of, or filing, recording or registration with, or exemption by, any
Governmental Authority, or any other third party, is required to authorize, or
is required in connection with the execution or delivery of this Amendment or
the performance of, or the legality, validity, binding effect or enforceability
of, this Amendment or the Credit Agreement, as amended hereby.

(d)        Each representation and warranty by the Borrowers in Article VI of
the Credit Agreement, as amended hereby, is true and correct as of the date
hereof in all material respects, except to the extent that such representation
or warranty expressly relates to an earlier date (in which case such
representation and warranty shall be true and correct as of such earlier date).

(e)        Upon the effectiveness of this Amendment, no Default or Unmatured
Default exists under the terms of the Credit Agreement.

 

 

3

 

--------------------------------------------------------------------------------

 

 

4.

Reference to and Effect on the Credit Agreement.

(a)        Upon the effectiveness of Section 1 hereof, on and after the date
hereof, each reference in the Credit Agreement to “this Credit Agreement,”
“hereunder,” “hereof,” “herein” or words of like import shall mean and be a
reference to the Credit Agreement, as amended hereby.

(b)        Except as specifically amended above, the Credit Agreement, as
amended hereby, and all other documents, instruments and agreements executed
and/or delivered in connection therewith, shall remain in full force and effect,
and are hereby ratified and confirmed. Without limiting the foregoing, each
Borrower hereby reaffirms all Liens on the Collateral which have been granted by
it in favor of the Administrative Agent (for itself and the other Holders of
Secured Obligations) pursuant to any of the Loan Documents.

(c)        Except as expressly provided herein, the execution, delivery and
effectiveness of this Amendment shall not operate as a waiver of any right,
power or remedy of the Administrative Agent or the Lenders, nor constitute a
waiver of any provision of the Credit Agreement or any other documents,
instruments and agreements executed and/or delivered in connection therewith.

5.          GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

6.          Headings. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

7.          Counterparts. This Amendment may be executed by one or more of the
parties hereto on any number of separate counterparts and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of an executed counterpart of a signature page of this
Amendment by facsimile or e-mail transmission shall be effective as delivery of
a manually executed counterpart of this Amendment.

Remainder of page intentionally left blank.

 

4

 

--------------------------------------------------------------------------------

 

 

IN WITNESS WHEREOF, this Amendment has been duly executed and delivered on the
date first above written.

ARVINMERITOR, INC., as a Borrower

 

 

By: /s/ Mary A. Lehmann                                         

Name: Mary A. Lehmann

 

Title: Senior Vice President, Strategic
Initiatives, and Treasurer

 

 

 

 

 

ARVINMERITOR FINANCE IRELAND,
as a Borrower

 

 

By: /s/ Scott Stevens                                                

Name: Scott Stevens

 

Title: Director

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

JPMORGAN CHASE BANK, NATIONAL

 

ASSOCIATION, as Administrative Agent
and as a Lender

 

 

 

 

 

By: /s/ Robert P. Kellas                                                       

Name: Robert P. Kellas

 

Title: Executive Director

 

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

CITICORP NORTH AMERICA, INC.,

 

as a Lender

 

 

 

 

 

By: /s/ Edward D. Herko                                  

Name: Edward D. Herko

 

Title: Vice President

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

UBS LOAN FINANCE LLC, as a Lender

 

 

By: /s/ Irja R.
Otsa                                                                    

Name: Irja R. Otsa

 

Title: Associate Director, Banking Products Services, US

 

 

 

By: /s/ Richard L. Tavrow

 

Name: Richard L. Tavrow

 

Title: Director, Banking Products Services, US

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

ABN AMRO BANK N.V., as a Lender

 

 

By: /s/ David Carrington                               

Name: David Carrington

Title: Director

 

 

By: /s/ Marc Brondyke                                  

Name: Marc Brondyke

Title: Associate

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

BNP PARIBAS, as a Lender

 

 

By: /s/ Andrew Strait                                  

Name: Andrew Strait

Title: Managing Director

 

 

By: /s/ Nader Tannous                                

Name: Nader Tannous

Title: Director

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

LEHMAN COMMERCIAL PAPER INC.,

as a Lender

 

 

By: /s/ Randall Braunfeld                                

Name: Randall Braunfeld

 

Title: Authorized Signatory

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

NATIONAL CITY BANK, as a Lender

 

 

By: /s/ Kenneth M. Blackwell                            

Name: Kenneth M. Blackwell

 

Title: Vice President

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

BANK OF AMERICA, N.A., as a Lender

 

 

By: /s/ Chas McDonell                                           

Name: Chas McDonell

 

Title: Senior Vice President

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

SUNTRUST BANK, as a Lender

 

 

By: /s/ Michael Lapresi                                      

Name: Michael Lapresi

 

Title: Managing Director

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

BANK OF TOKYO-MITSUBISHI UFJ

TRUST COMPANY, as a Lender

 

 

By: /s/ Lillian Kim                                                     

Name: Lillian Kim

 

Title: Vice President

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

COMERICA BANK, as a Lender

 

 

By: /s/ Thomas VanderMeulen                                

Name: Thomas VanderMeulen

 

Title: Account Officer

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

THE BANK OF NEW YORK, as a Lender

 

 

By: /s/ Mark F. Johnston                                     

Name: Mark F. Johnston

 

Title: Vice President

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

BAYERISCHE LANDESBANK,

 

as a Lender

 

 

 

 

 

By: /s/ Michael Hintz                                        

 

Name: Michael Hintz

Title: Vice President

 

 

 

 

By: /s/ Nikolai von Mengden                          

 

Name: Nikolai von Mengden

Title: Senior Vice President

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

THE BANK OF NOVA SCOTIA,

as a Lender

 

 

By: /s/ J. F. Todd                                             

Name: J. F. Todd

 

Title: Managing Director

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

FIFTH THIRD BANK, as a Lender

 

 

By: /s/ Brian Jelinski                                        

Name: Brian Jelinski

 

Title: Portfolio Manager

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

THE ROYAL BANK OF SCOTLAND PLC,

as a Lender

 

 

By: /s/ James P. Welch                                              

Name: James P. Welch

 

Title: Senior Vice President

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

BANK AUSTRIA CREDITANSTALT AG,

as a Lender

 

 

By: /s/ A. Anzenhofer                                                    

Name: A. Anzenhofer

 

Title: Deputy Managing Director

 

 

 

By: /s/ G. Pölzl

 

Name: G. Pölzl

 

Title: Senior Relationship Manager

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

LANDESBANK BADEN-WUERTTEMBERG,
NEW YORK AND/OR CAYMAN ISLAND BRANCH,
as a Lender

 

 

By: /s/ Donald
Wolf                                                                

Name: Donald Wolf

 

Title: Vice President

 

 

 

By: /s/ Rainer Bucher

 

Name: Rainer Bucher

 

Title: Senior Credit Analyst

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

FOOTHILL GROUP, INC., as a Lender

 

 

By: /s/ Scott P. Quigley                                                

Name: Scott P. Quigley

 

Title: Vice President

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 

--------------------------------------------------------------------------------

 

 

 

GENERAL ELECTRIC CAPITAL CORP.,
as a Lender

 

 

By: /s/ Rebecca L. Milligan                                             

Name: Rebecca L. Milligan

 

Title: Duly Authorized Signatory

 

 

--------------------------------------------------------------------------------

 

 

ATTACHMENT A

 

Reaffirmation

 

dated as of October 2, 2007

Each of the undersigned hereby acknowledges receipt of a copy of the foregoing
Amendment No. 2 to that certain Credit Agreement, dated as of June 23, 2006 (as
amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), among ArvinMeritor, Inc., an Indiana corporation (the
“Company”), ArvinMeritor Finance Ireland, the financial institutions from time
to time parties thereto (the “Lenders”) and JPMorgan Chase Bank, National
Association, as Administrative Agent (in such capacity, the “Administrative
Agent”), which Amendment No. 2 is dated as of October 2, 2007 (the “Amendment”).
Capitalized terms used herein without definition shall have the meanings
assigned to such terms in the Credit Agreement. Without in any way establishing
a course of dealing by the Administrative Agent or any Lender, each of the
undersigned reaffirms the terms and conditions of that certain Subsidiary
Guaranty, dated as of June 23, 2006 (as amended, restated, supplemented or
otherwise modified from time to time, including to add additional Subsidiary
Guarantors, the “Subsidiary Guaranty”), by and among each of the undersigned in
favor of the Administrative Agent, for the ratable benefit of the Holders of
Secured Obligations, and acknowledges and agrees that the Subsidiary Guaranty
and each other Loan Document executed by the undersigned in connection with the
Credit Agreement remains in full force and effect and is hereby reaffirmed,
ratified and confirmed. Without limiting the foregoing, each of the undersigned
hereby reaffirms all Liens on the Collateral which have been granted by it in
favor of the Administrative Agent (for itself and the other Holders of Secured
Obligations) pursuant to any of the Loan Documents. All references to the Credit
Agreement contained in the above referenced documents shall be a reference to
the Credit Agreement as so modified by the Amendment and as the same may from
time to time hereafter be amended, modified or restated.

Remainder of page intentionally left blank.

 

A-1

 

--------------------------------------------------------------------------------

 

 

IN WITNESS WHEREOF, this Reaffirmation has been duly executed and delivered on
the date first above written.

 

ARVINYL WEST, INC

ARVIN INTERNATIONAL HOLDINGS, LLC

ARVINMERITOR ASSEMBLY, LLC

ARVINMERITOR BRAKE HOLDINGS, INC.

ARVINMERITOR HOLDINGS MEXICO, LLC (successor to
ArvinMeritor Holdings Mexico, Inc.)

ARVINMERITOR INVESTMENTS, LLC (successor to each
of Meritor I Acquisition Corporation and Meritor Finance
Cayman Islands, Ltd.)

ARVINMERITOR OE, LLC

ARVINMERITOR TECHNOLOGY, LLC

ARVIN REPLACEMENT PRODUCTS FINANCE, LLC

EUCLID INDUSTRIES, LLC

GABRIEL EUROPE, INC.

GABRIEL RIDE CONTROL PRODUCTS, INC.

MAREMONT CORPORATION

MAREMONT EXHAUST PRODUCTS, INC.

MERITOR HEAVY VEHICLE BRAKING SYSTEMS (U.S.A.), INC.

MERITOR HEAVY VEHICLE SYSTEMS, LLC

MERITOR HEAVY VEHICLE SYSTEMS (MEXICO), INC.

MERITOR HEAVY VEHICLE SYSTEMS (SINGAPORE) PTE., LTD.

MERITOR HEAVY VEHICLE SYSTEMS (VENEZUELA), INC.

MERITOR LIGHT VEHICLE SYSTEMS (SPAIN) INC.

MERITOR MANAGEMENT CORP.

MERITOR TECHNOLOGY, INC.

MERITOR TRANSMISSION CORPORATION

ARVINMERITOR FILTERS OPERATING CO., LLC

ARVINMERITOR FILTERS HOLDING CO., LLC

ARVIN TECHNOLOGIES, INC.

ARVINMERITOR, INC., a Nevada corporation

ARVIN INDUSTRIES FOREIGN SALES CORPORATION

ARVINMERITOR HOLDINGS, LLC

AVM, INC.

 

 

By: /s/ Mary A. Lehmann                                         

Name: Mary A. Lehmann

 

Title: Vice President and Treasurer

 

 

 

Signature Page to

Reaffirmation

(Amendment No. 2 to Credit Agreement)

 

--------------------------------------------------------------------------------

 

 

 

ARVINMERITOR B.V.

 

 

By: /s/ H. C. Nuijt                                              

Name: H. C. Nuijt

 

Title: Director

 

 

 

 

 

MERITOR HOLDINGS NETHERLANDS B.V.

 

 

 

 

 

By: /s/ H. C. Nuijt                                               

Name: H. C. Nuijt

 

Title: Director

 

 

 

 

 

ARVINMERITOR LIMITED

 

 

 

 

 

By: /s/ Daniel Hopgood                                     

Name: Daniel Hopgood

 

Title: Director

 

 

 

 

 

ARVIN EUROPEAN HOLDINGS (UK) LIMITED

 

 

 

 

 

By: /s/ Daniel Hopgood                                      

Name: Daniel Hopgood

 

Title: Director

 

 

 

 

 

ARVINMERITOR SWEDEN AB

 

 

 

 

 

By: /s/ Dan Johansson                                        

 

Name: Dan Johansson

 

Title: Board of Directors

 

 

 

 

 

MERITOR LUXEMBOURG S.A.R.L.

 

 

 

By: /s/ John A. Crable                                        

Name: John A. Crable

 

Title: Sole Manager

 

 

Signature Page to

Reaffirmation

(Amendment No. 2 to Credit Agreement)

 

--------------------------------------------------------------------------------

 

 

IN WITNESS whereof the undersigned has executed this Reaffirmation as a deed the
day and year first above written.

 

 

 

 

 

 

EXECUTED AS A DEED by ARVIN CAYMAN ISLANDS, LTD.

)

/s/ Mary A. Lehmann

)

Duly Authorised Signatory

 

)

 

 

)

Name:

Mary A. Lehmann

 

)

 

 

)

Title:

Vice President and Treasurer

 

)

 

 

 

 

 

 

 

 

 

 

in the presence of:

 

 

 

 

 

 

 

 

 

/s/ Bonnie Wilkinson

 

Signature of Witness

 

 

 

Name:

Bonnie Wilkinson

 

 

 

Address:

2135 West Maple Road

 

Troy, MI 48084  

 

Occupation:

Attorney

 

 

 

 

(Note: These details are to be completed
in the witness’s own hand writing.) 

 

 

Signature Page to

Reaffirmation

(Amendment No. 2 to Credit Agreement)

 

--------------------------------------------------------------------------------

 

 

IN WITNESS whereof the undersigned has executed this Reaffirmation as a deed the
day and year first above written.

 

 

 

 

 

 

EXECUTED AS A DEED by MERITOR CAYMAN ISLANDS, LTD.

)

/s/ Mary A. Lehmann

)

Duly Authorised Signatory

 

)

 

 

)

Name:

Mary A. Lehmann

 

)

 

 

)

Title:

Treasurer

 

)

 

 

 

 

 

 

 

 

 

 

in the presence of:

 

 

 

 

 

 

 

 

 

 

 

Signature of Witness

 

 

 

Name:

Bonnie Wilkinson

 

 

 

Address:

2135 West Maple Road

 

Troy, MI 48084

 

Occupation:

Attorney

 

 

 

 

(Note: These details are to be completed
in the witness’s own hand writing.) 

 

 

 

 

Signature Page to

Reaffirmation

(Amendment No. 2 to Credit Agreement)