EXHIBIT 10.2
AMENDMENT NO. 1 AND CONSENT AGREEMENT
     This Amendment No. 1 and Consent Agreement (this “Agreement”) dated as of
April 30, 2009 is entered into by and among BORGWARNER INC., a Delaware
corporation (the “Borrower”), the Guarantors (as defined in the Credit Agreement
(defined below)), the Lenders (as defined in the Credit Agreement (defined
below)) identified on the signature pages hereto, JPMORGAN CHASE BANK, as the
administrative agent under the Credit Agreement prior to giving effect to this
Agreement (in such capacity, the “Existing Administrative Agent”), and BANK OF
AMERICA, N.A. (“Bank of America”), as the administrative agent under the Credit
Agreement after giving effect to this Agreement (in such capacity, the
“Replacement Administrative Agent”). Capitalized terms used but not otherwise
defined herein shall have the meanings ascribed thereto in the Credit Agreement.
STATEMENT OF PURPOSE
     WHEREAS, the Borrower, the Lenders (including Bank of America), and the
Existing Administrative Agent are all parties to that certain Credit Agreement
dated as of July 22, 2004 (as amended hereby and as further amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”).
     WHEREAS, the Existing Administrative Agent has provided, or pursuant hereto
is providing, notice to the Borrower that it is resigning as the Administrative
Agent, Issuing Bank and Swingline Lender pursuant to Section 2.6(i) and
Article VIII of the Credit Agreement (prior to giving effect to this Agreement),
and the Borrower has requested that Bank of America become the Administrative
Agent, the Issuing Bank and the Swingline Lender under the Credit Agreement, and
Bank of America has agreed to do so subject to the terms and conditions set
forth herein.
     WHEREAS, the Borrower has requested, or pursuant hereto is requesting,
pursuant to Section 2.7 of the Credit Agreement (prior to giving effect to this
Agreement), that the Lenders agree to extend their Commitments to an extended
Maturity Date of January 22, 2011, and certain of the Lenders are willing so to
extend all or a portion of their respective Commitments subject to the terms and
conditions set forth herein, and subject to reversion to the existing Maturity
Date of July 22, 2009 under certain circumstances as more fully set forth in the
Amended Credit Agreement (defined below).
     WHEREAS, the Borrower has requested that the Replacement Administrative
Agent and the Lenders agree to amend the Credit Agreement as more specifically
set forth herein (with the substitution of the Replacement Administrative Agent
for the Existing Administrative Agent being deemed to have occurred prior to
such amendments, as further provided below), and such Administrative Agent and
Lenders party hereto have agreed to such amendments subject to the terms and
conditions set forth herein.

 

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     NOW, THEREFORE, subject to the occurrence of the Effective Date pursuant to
Section 4 hereof and in consideration of these premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:
     1. Replacement of Administrative Agent, Issuing Bank and Swingline Lender.
Pursuant to its notice to the Borrower, delivered either prior to the date of
this Agreement or pursuant to its signature to this Agreement, and
notwithstanding any contrary provisions relating to notice or process in the
Credit Agreement, effective upon the Effective Date (defined below) the Existing
Administrative Agent shall be deemed to have resigned as the Administrative
Agent, the Issuing Bank and the Swingline Lender, and Bank of America shall at
such time become the Administrative Agent, the Issuing Bank and the Swingline
Lender, all pursuant to an Agency Resignation, Assignment and Assumption
Agreement dated as of the date hereof between the Existing Administrative Agent
and the Replacement Administrative Agent (the “Agent Replacement Agreement”).
The parties hereto, by their execution of this Agreement, agree to such
resignation and replacement of the Administrative Agent, the Issuing Bank and
the Swingline Lender, and that such resignation and replacement, and the Agent
Replacement Agreement, shall be deemed to have occurred and be effective upon
the occurrence of the Effective Date immediately prior to the effectiveness of
the extension (and related assignments, if any) and amendments set forth in
paragraphs 2 and 3 below.
     2. Extension of Maturity Date and Related Assignments.
     (a) Pursuant to its notice to the Lenders, delivered either prior to the
date of this Agreement or by this Agreement, the Borrower has requested that the
Lenders agree to extend the Maturity Date of their Commitments under the Credit
Agreement pursuant to Section 2.7 thereof (with such adjustments thereto as are
provided herein) to an extended Maturity Date of January 22, 2011 (the “Extended
Maturity Date”).
     (b) Each Lender that is willing to extend all or a portion of its
Commitment, or an amount in excess of its Commitment in effect prior to the
Effective Date, under the Credit Agreement to the proposed Extended Maturity
Date as a Continuing Lender (such amount with respect to any Lender, its
“Extended Commitment Amount”) has executed this Agreement and has indicated to
the Borrower and the Replacement Administrative Agent the amount of its
Commitment it is agreeing to extend to the Extended Maturity Date. All such
extensions shall be pro rata among the Facilities of the Continuing Lenders.
     (c) The Commitments of Non-Extending Lenders and the portion of the
Commitments of Continuing Lenders that are not extended in accordance with this
Agreement (such amount with respect to any Lender, its “Non-Extended Commitment
Amount”) shall continue to have the Maturity Date in effect prior to giving
effect to this Agreement, July 22, 2009 (the “Existing Maturity Date”).
     (d) The Commitments of all Lenders in effect as of the Effective Date shall
continue unchanged to the close of business on the Existing Maturity Date. Upon
the close of business on the Existing Maturity Date, the Extended Commitment
Amounts

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shall immediately take effect, and at such time the Extended Commitment Amounts
of the Continuing Lenders shall be as set forth on Schedule A hereto (after
giving effect to any assignments deemed to have occurred on the Existing
Maturity Date pursuant to paragraph 2(e) below).
     (e) In the event that the Extended Commitment Amount upon the occurrence of
the Existing Maturity Date with respect to any Continuing Lender exceeds such
Lender’s Commitment prior to the Existing Maturity Date (with respect to any
Continuing Lender, its “Excess Extended Commitment”), then each Lender with a
Commitment expiring on the Existing Maturity Date shall be deemed to have made
an assignment, pro rata among them in accordance with their Non-Extended
Commitment Amounts, to each Lender holding an Excess Extended Commitment. Such
assignments shall be deemed to have occurred immediately at the close of
business on the Existing Maturity Date, pursuant to the Borrower’s rights under
Section 2.7(d) of the Credit Agreement, but without any further action (and
without the need for any Assignment and Acceptance or other documentation)
hereunder or under the Credit Agreement, and notwithstanding anything to the
contrary in the Credit Agreement; provided that in the event that any Loans are
outstanding pursuant to any reduced Non-Extended Commitment Amounts, applicable
payments of principal, interest and fees shall be made by the Borrower and/or
the Lenders with Excess Extended Commitments, as the Replacement Administrative
Agent may direct, in order to effectuate such deemed assignments.
     (f) After the Effective Date, the Borrower may exercise its rights to have
Lenders holding Non-Extended Commitment Amounts assign such amounts to Lenders
or prospective Lenders willing to agree to the Extended Maturity Date with
respect to such Commitments, in each case in compliance with the requirements of
Section 2.7(d) of the Credit Agreement, except that (i) such assignment may be
required with respect to any Non-Extended Commitment Amount even if the
applicable Lender is a Continuing Lender because it has agreed to the Extended
Maturity Date hereunder with respect to a portion of its Commitment, and
(ii) any such assignment shall only be effective upon the occurrence of the
Existing Maturity Date. In the event any such assignment occurs, the Borrower
and the proposed assignee shall inform the Replacement Administrative Agent, and
Schedule A hereto shall be revised to show such assignment, so that Schedule A
shows all Extended Commitment Amounts as of the close of business on the
Existing Maturity Date.
     (g) The Extended Commitment Amounts set forth on Schedule A as of the
Existing Maturity Date shall be effective pursuant to this paragraph 2 as of
such date, without regard to any assignments by any Continuing Lenders after the
Effective Date but prior to the Existing Maturity Date. The Schedule A prepared
and provided by the Replacement Administrative Agent shall be conclusive as of
the Existing Maturity Date absent manifest error.
     (h) The parties hereto hereby acknowledge that the extension of the
Maturity Date to the Extended Maturity Date is subject to the provisions of the
Amended Credit

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Agreement, and such Maturity Date may revert to July 22, 2009 under certain
circumstances as more fully set forth in the Amended Credit Agreement.
     (i) The parties hereto hereby waive (i) any inconsistency between the
timing of the proposed extension as set forth in this paragraph 2 of this
Agreement and the timing of extensions generally required by Section 2.7 of the
Credit Agreement, including periods of notice, response and effectiveness,
(ii) any inconsistency between this Agreement and Section 2.7 of the Credit
Agreement to the extent that any Lender is agreeing to extend some, but not all,
of its Commitments pursuant to this Agreement, and (iii) any requirement in
Section 2.7(a) of the Credit Agreement that at least the Required Lenders
consent to extend the Maturity Date with respect to their Commitments.
     (j) The extension of the Maturity Date with respect to the Extended
Commitment Amounts pursuant to this paragraph 2 shall be deemed to have occurred
on the Effective Date immediately after the replacement of the Administrative
Agent set forth in paragraph 1 above and immediately prior to the amendments set
forth in paragraph 3 below, despite the effectiveness of the Extended Commitment
Amounts and Schedule A not taking effect until the Existing Maturity Date.
     (k) In the event that pursuant to the Amended Credit Agreement the Maturity
Date with respect to the Extended Commitment Amounts reverts to the Existing
Maturity Date, as provided therein, Schedule A shall not be effective, and all
Commitments shall mature as of the Existing Maturity Date.
     3. Amendments.
     (a) Amendment to the Credit Agreement. The Credit Agreement is hereby
amended in its entirety so that, after giving effect to such amendment, it reads
in the form set forth on Exhibit A hereto (in such form, the “Amended Credit
Agreement”).
     (b) Additional Exhibits and Schedules. The following additional Exhibits
and Schedules to the Credit Agreement are hereby added to the Credit Agreement,
and have been or are being delivered in connection with this Agreement:
     (i) a Guaranty Agreement (the “Guaranty Agreement”) among the Replacement
Administrative Agent and certain of the Subsidiaries as set forth on the
signature pages thereto (the “Guarantors” and together with the Borrower, the
“Loan Parties”), which shall be substantially in the form attached hereto as
Exhibit B and shall constitute Exhibit C under the Credit Agreement;
     (ii) a new Schedule 1.1 (Mandatory Cost Formulae) to the Credit Agreement,
in the form of Annex A hereto;
     (iii) a new Schedule 3.14 (Subsidiaries and Other Equity Interests) to the
Credit Agreement, in the form of Annex B hereto;
     (iv) a new Schedule 9.1 (Administrative Agent’s Office, Certain Addresses
for Notices) to the Credit Agreement, in the form of Annex C hereto.

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     (c) Additional Amendment to Credit Agreement. After giving effect to the
amendment set forth in paragraph 3(a) above, the Amended Credit Agreement shall
be deemed to be further amended by adding one of the following provisions
thereto:
     (i) if Lenders representing 100% of the Commitments have signed this
Agreement (without regard to whether such Lenders have agreed to any extension
of their Commitments pursuant to paragraph 2 above), then Section 2.19(b) of the
Amended Credit Agreement shall be further amended by deleting such section in
its entirety and replacing it with the following:
     (b) If at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, unreimbursed LC
Disbursements, interest, fees and other Obligations then due hereunder and under
the other Loan Documents, such funds shall be applied:
     First, to payment of that portion of the Obligations constituting fees,
indemnities, expenses and other amounts (including fees, charges and
disbursements of counsel to the Administrative Agent) payable to the
Administrative Agent in its capacity as such;
     Second, to payment of that portion of the Obligations arising under the
Loan Documents constituting fees, indemnities and other amounts (other than
principal, interest and Letter of Credit fees under Section 2.13(b)) payable to
the Lenders and the Issuing Bank (including fees, charges and disbursements of
counsel to the respective Lenders and the Issuing Bank arising under the Loan
Documents and amounts payable under Sections 2.16, 2.17 and 2.18), ratably among
them in proportion to the respective amounts described in this clause Second
payable to them;
     Third, to payment of that portion of the Obligations constituting accrued
and unpaid Letter of Credit fees under Section 2.13(b) and interest on the
Loans, LC Borrowings and other Obligations arising under the Loan Documents,
ratably among the Lenders and the Issuing Bank in proportion to the respective
amounts described in this clause Third payable to them;
     Fourth, to payment of that portion of the Obligations constituting unpaid
principal of the Loans, LC Borrowings and Obligations then owing under Secured
Hedge Agreements and Secured Cash Management Agreements, ratably among the
Lenders, the Issuing Bank,

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the Hedge Banks and the Cash Management Banks in proportion to the respective
amounts described in this clause Fourth held by them;
     Fifth, to the Administrative Agent for the account of the Issuing Bank, to
Cash Collateralize that portion of LC Exposures comprised of the aggregate
undrawn amount of Letters of Credit; and
     Last, the balance, if any, after all of the Obligations have been
indefeasibly paid in full, to the Borrower or as otherwise required by Law.
     Subject to Section 2.6(c), amounts used to Cash Collateralize the aggregate
undrawn amount of Letters of Credit pursuant to clause Fifth above shall be
applied to satisfy drawings under such Letters of Credit as they occur. If any
amount remains on deposit as Cash Collateral after all Letters of Credit have
either been fully drawn or expired, such remaining amount shall be applied to
the other Obligations, if any, in the order set forth above.
     Notwithstanding the foregoing, Obligations arising under Secured Cash
Management Agreements and Secured Hedge Agreements shall be excluded from the
application described above if either (a) no Default has occurred and is
continuing at such time or (b) the Administrative Agent has not received written
notice thereof, together with such supporting documentation as the
Administrative Agent may request, from the applicable Cash Management Bank or
Hedge Bank, as the case may be. Each Cash Management Bank or Hedge Bank not a
party to the Credit Agreement that has given the notice contemplated by the
preceding sentence shall, by such notice, be deemed to have acknowledged and
accepted the appointment of the Administrative Agent pursuant to the terms of
Article VIII hereof for itself and its Affiliates as if a “Lender” party hereto.
     (ii) if Lenders representing less than 100% of the Commitments have signed
this Agreement (without regard to whether such Lenders have agreed to any
extension of their Commitments pursuant to paragraph 2 above), then the
following new Section 5.14 shall be added to the Amended Credit Agreement:
SECTION 5.14 Additional Amendment. On or promptly after July 22, 2009, enter
into an amendment with the Administrative Agent and all of the Lenders with
Commitments at such time (and the Administrative Agent and each of the Lenders
agrees to enter into such an amendment), on reasonable terms and conditions, to
amend Section 2.19(b) by replacing such subsection in its entirety with language
substantially as follows:

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     (b) If at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, unreimbursed LC
Disbursements, interest, fees and other Obligations then due hereunder and under
the other Loan Documents, such funds shall be applied:
     First, to payment of that portion of the Obligations constituting fees,
indemnities, expenses and other amounts (including fees, charges and
disbursements of counsel to the Administrative Agent) payable to the
Administrative Agent in its capacity as such;
     Second, to payment of that portion of the Obligations arising under the
Loan Documents constituting fees, indemnities and other amounts (other than
principal, interest and Letter of Credit fees under Section 2.13(b)) payable to
the Lenders and the Issuing Bank (including fees, charges and disbursements of
counsel to the respective Lenders and the Issuing Bank arising under the Loan
Documents and amounts payable under Sections 2.16, 2.17 and 2.18), ratably among
them in proportion to the respective amounts described in this clause Second
payable to them;
     Third, to payment of that portion of the Obligations constituting accrued
and unpaid Letter of Credit fees under Section 2.13(b) and interest on the
Loans, LC Borrowings and other Obligations arising under the Loan Documents,
ratably among the Lenders and the Issuing Bank in proportion to the respective
amounts described in this clause Third payable to them;
     Fourth, to payment of that portion of the Obligations constituting unpaid
principal of the Loans, LC Borrowings and Obligations then owing under Secured
Hedge Agreements and Secured Cash Management Agreements, ratably among the
Lenders, the Issuing Bank, the Hedge Banks and the Cash Management Banks in
proportion to the respective amounts described in this clause Fourth held by
them;
     Fifth, to the Administrative Agent for the account of the Issuing Bank, to
Cash Collateralize that portion of LC Exposures comprised of the aggregate
undrawn amount of Letters of Credit; and

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     Last, the balance, if any, after all of the Obligations have been
indefeasibly paid in full, to the Borrower or as otherwise required by Law.
     Subject to Section 2.6(c), amounts used to Cash Collateralize the aggregate
undrawn amount of Letters of Credit pursuant to clause Fifth above shall be
applied to satisfy drawings under such Letters of Credit as they occur. If any
amount remains on deposit as Cash Collateral after all Letters of Credit have
either been fully drawn or expired, such remaining amount shall be applied to
the other Obligations, if any, in the order set forth above.
     Notwithstanding the foregoing, Obligations arising under Secured Cash
Management Agreements and Secured Hedge Agreements shall be excluded from the
application described above if either (a) no Default has occurred and is
continuing at such time or (b) the Administrative Agent has not received written
notice thereof, together with such supporting documentation as the
Administrative Agent may request, from the applicable Cash Management Bank or
Hedge Bank, as the case may be. Each Cash Management Bank or Hedge Bank not a
party to the Credit Agreement that has given the notice contemplated by the
preceding sentence shall, by such notice, be deemed to have acknowledged and
accepted the appointment of the Administrative Agent pursuant to the terms of
Article VIII hereof for itself and its Affiliates as if a “Lender” party hereto.
     (d) Joint Lead Arrangers and Joint Book Managers. After giving effect to
the amendment set forth in paragraph 3(a) above, the Joint Lead Arrangers and
the Joint Book Managers for this Agreement and for the Amended Credit Agreement
shall be Banc of America Securities LLC, Deutsche Bank Securities Inc. and
Citigroup Global Markets Inc., as set forth in the Amended Credit Agreement.
     4. Conditions to Effectiveness. Upon the satisfaction of each of the
following conditions, this Agreement shall be deemed to be effective (with the
provisions in paragraphs 1, 2 and 3 above effective in the order provided
therein) as of the date hereof (the date of satisfaction of such conditions, the
“Effective Date”):
     (a) the Administrative Agent shall have received:
     (i) counterparts of (A) this Agreement (including Schedule B hereto setting
forth utilizations, as of the Effective Date after giving effect to all
transactions contemplated by this Agreement to occur on such date, with respect
to each of the permitted additional amounts (i.e., baskets) set forth in
Sections 6.2(d), (e) and (f) of the Credit Agreement) executed by the
Administrative

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Agent, the Required Lenders and the Borrower, (B) the Guaranty Agreement
executed by the Replacement Administrative Agent and each Guarantor, and (C) the
Agent Replacement Agreement;
     (ii) such certificates of resolutions or other action, incumbency
certificates and/or other certificates of responsible officers of the Loan
Parties as the Replacement Administrative Agent may require evidencing the
identity, authority and capacity of each responsible officer thereof authorized
to act as a responsible officer in connection with this Agreement and the other
Loan Documents (as defined in the Amended Credit Agreement) to which such Loan
Party is a party;
     (iii) such documents and certifications as the Replacement Administrative
Agent may reasonably require to evidence that each Loan Party is duly organized
or formed, and that the Borrower is validly existing, in good standing and
qualified to engage in business in Delaware, Michigan and Illinois;
     (iv) a favorable opinion of Miller Canfield, counsel to each of the Loan
Parties, addressed to the Replacement Administrative Agent and each Lender, as
to such matters concerning the Loan Parties and the Loan Documents as the
Replacement Administrative Agent or the Required Lenders may reasonably request;
     (v) completed requests for information, dated on or before the Effective
Date, listing all effective financing statements filed in all jurisdictions that
the Replacement Administrative Agent may deem necessary or desirable in order to
perfect Liens on assets of any Loan Party that name any Loan Party as debtor,
together with copies of such other financing statements;
     (vi) such other instruments, documents and certificates as the
Administrative Agent shall reasonably request in connection with the execution
of this Agreement;
     (b) the Borrower shall have paid to the Replacement Administrative Agent,
for the account of each Continuing Lender (including Bank of America), an
extension fee on the aggregate principal amount of all Extended Commitment
Amounts, as separately agreed among the Borrower, the Replacement Administrative
Agent and the various Continuing Lenders;
     (c) the Borrower shall have issued convertible senior notes due 2012 (the
“Convertible Notes”) pursuant to that certain Indenture dated as of
September 23, 1999 between the Borrower and The Bank of New York Trust Company,
N.A., as trustee, and a supplemental indenture thereto, all on terms and
conditions reasonably satisfactory to the Replacement Administrative Agent and
the Continuing Lenders;
     (d) the Borrower shall have paid (i) all fees required to be paid to the
Replacement Administrative Agent and the new Joint Lead Arrangers (as provided
in paragraph 3(d) above) on or before the Effective Date, including amounts set
forth in the

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Fee Letters (as defined in the Amended Credit Agreement), and (ii) all fees,
charges and disbursements of counsel to the Replacement Administrative Agent
(directly to such counsel if requested by the Replacement Administrative Agent)
to the extent invoiced prior to or on the Effective Date, plus such additional
amounts of such fees, charges and disbursements as shall constitute its
reasonable estimate of such fees, charges and disbursements incurred or to be
incurred by it through the closing proceedings (provided that such estimate
shall not thereafter preclude a final settling of accounts between the Borrower
and the Replacement Administrative Agent).
     For purposes of determining compliance with the conditions specified in
this paragraph 4, each Lender that has signed this Agreement shall be deemed to
have consented to, approved or accepted or to be satisfied with, each document
or other matter required thereunder to be consented to or approved by or
acceptable or satisfactory to a Lender unless the Administrative Agent shall
have received notice from such Lender prior to the proposed Effective Date
specifying its objection thereto.
     5. Effect of the Agreement. Except as expressly provided herein, the Credit
Agreement and the other Loan Documents shall remain unmodified and in full force
and effect. Except as expressly set forth herein, this Agreement shall not be
deemed (a) to be a waiver of, or consent to, a modification or amendment of, any
other term or condition of the Credit Agreement or any other Loan Document,
(b) to prejudice any other right or rights which the Administrative Agent or the
Lenders may now have or may have in the future under or in connection with the
Credit Agreement or the other Loan Documents or any of the instruments or
agreements referred to therein, as the same may be amended, restated,
supplemented or otherwise modified from time to time, (c) to be a commitment or
any other undertaking or expression of any willingness to engage in any further
discussion with the Borrower or any other Person with respect to any waiver,
amendment, modification or any other change to the Credit Agreement or the Loan
Documents or any rights or remedies arising in favor of the Lenders or the
Administrative Agent, or any of them, under or with respect to any such
documents or (d) to be a waiver of, or consent to or a modification or amendment
of, any other term or condition of any other agreement by and among the
Borrower, on the one hand, and the Administrative Agent or any other Lender, on
the other hand. References in the Credit Agreement to “this Agreement” (and
indirect references such as “hereunder”, “hereby”, “herein”, and “hereof”) and
in any Loan Document to the Credit Agreement shall be deemed to be references to
the Credit Agreement as modified hereby.
     6. Representations and Warranties/No Default. By its execution hereof,
     (a) the Borrower and each of the Guarantors hereby certifies, represents
and warrants to the Existing Administrative Agent, the Replacement
Administrative Agent and the Lenders that:
     (i) after giving effect to this Agreement and the transactions set forth in
paragraphs 1, 2 and 3 above, each of the representations and warranties set
forth in the Amended Credit Agreement and the other Loan Documents is true and
correct as of the date hereof, except that for purposes of this paragraph
6(a)(i), the representations and warranties contained in Section 3.4(a) of the
Credit Agreement shall be deemed to refer to the most recent annual and
quarterly

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financial statements furnished pursuant to Sections 5.1(a) and (b) of the Credit
Agreement, respectively;
     (ii) after giving effect to this Agreement and the transactions set forth
in paragraphs 1, 2 and 3 above, no Default or Event of Default has occurred or
is continuing;
     (iii) it has the right, power and authority and has taken all necessary
corporate and other action to authorize the execution, delivery and performance
of this Agreement and each of the other documents executed in connection
herewith to which it is a party, including the Guaranty Agreement, in accordance
with their respective terms and the transactions contemplated hereby;
     (iv) this Agreement and each of the other documents executed in connection
herewith to which it is a party, including the Guaranty Agreement, has been duly
executed and delivered by the duly authorized officers of the Borrower and each
Guarantor, as applicable, and each such document constitutes the legal, valid
and binding obligation of the Borrower or such Guarantor, as applicable,
enforceable in accordance with its terms, except as may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar state or federal
debtor relief laws from time to time in effect which affect the enforcement of
creditors’ rights in general and the availability of equitable remedies; and
     (v) no consent, license or approval is required in connection with the
execution, delivery and performance by such Loan Party and the validity against
such Loan Party of this Agreement and each of the other documents executed in
connection herewith to which it is a party, including the Guaranty Agreement;
and
     (b) the Borrower hereby certifies, represents and warrants to the Existing
Administrative Agent, the Replacement Administrative Agent and the Lenders that
the rating of Index Debt as of the date hereof is Ba1 by Moody’s and BBB by S&P.
     7. Reaffirmations. Each Loan Party (a) agrees that the transactions
contemplated by this Agreement shall not limit or diminish the obligations of
such Person under, or release such Person from any obligations under, the Credit
Agreement, the Guaranty Agreement or any other Loan Document to which it is a
party, (b) confirms and reaffirms its obligations under the Credit Agreement,
the Guaranty Agreement and each other Loan Document to which it is a party and
(c) agrees that the Credit Agreement, the Guaranty Agreement and each other Loan
Document to which it is a party remain in full force and effect and are hereby
ratified and confirmed.
     8. Miscellaneous.
     (a) Governing Law and Waiver of Jury Trial. THE PROVISIONS OF SECTIONS 9.9
AND 9.10 OF THE AMENDED CREDIT AGREEMENT ARE INCORPORATED HEREIN BY REFERENCE,
MUTATIS MUTANDIS, AS IF FULLY REPRODUCED HEREIN.

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     (b) Counterparts. This Agreement may be executed by one or more of the
parties hereto in any number of separate counterparts and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.
     (c) Electronic Transmission. A facsimile, telecopy, pdf or other
reproduction of this Agreement may be executed by one or more parties hereto,
and an executed copy of this Agreement may be delivered by one or more parties
hereto by facsimile or similar instantaneous electronic transmission device
pursuant to which the signature of or on behalf of such party can be seen, and
such execution and delivery shall be considered valid, binding and effective for
all purposes. At the request of any party hereto, all parties hereto agree to
execute an original of this Agreement as well as any facsimile, telecopy, pdf or
other reproduction hereof.
     (d) Costs and Expenses. The Borrower agrees to pay to the Replacement
Administrative Agent on demand all fees and out-of-pocket charges and other
expenses incurred in connection with this Agreement, including, without
limitation, the reasonable fees and disbursements of counsel for the Replacement
Administrative Agent.
[Signature Pages Follow]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date and year first above written.

           
BORGWARNER INC., as Borrower
      By:         Name:         Title:           BORGWARNER DIVERSIFIED
TRANSMISSION PRODUCTS INC., as Guarantor
      By:         Name:         Title:           BORGWARNER DIVERSIFIED
TRANSMISSION PRODUCTS SERVICES INC., as Guarantor
      By:         Name:         Title:           BORGWARNER EMISSIONS SYSTEMS
HOLDINGS INC., as Guarantor
      By:         Name:         Title:           BORGWARNER EMISSIONS SYSTEMS
INC., as Guarantor
      By:         Name:         Title:           BORGWARNER EMISSIONS SYSTEMS OF
MICHIGAN INC., as Guarantor
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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BORGWARNER EUROPE INC., as Guarantor
      By:         Name:         Title:           BORGWARNER HOLDING INC., as
Guarantor
      By:         Name:         Title:           BORGWARNER INVESTMENT HOLDING
INC., as Guarantor
      By:         Name:         Title:           BORGWARNER JAPAN INC., as
Guarantor
      By:         Name:         Title:           BORGWARNER MORSE TEC INC., as
Guarantor
      By:         Name:         Title:           BORGWARNER NW INC., as
Guarantor
      By:         Name:         Title:           BORGWARNER POWDERED METALS
INC., as Guarantor
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            BORGWARNER SOUTH ASIA INC., as Guarantor
      By:         Name:         Title:           BORGWARNER THERMAL SYSTEMS
INC., as Guarantor
      By:         Name:         Title:           BORGWARNER THERMAL SYSTEMS OF
MICHIGAN INC., as Guarantor
      By:         Name:         Title:           BORGWARNER TORQTRANSFER SYSTEMS
INC., as Guarantor
      By:         Name:         Title:           BORGWARNER TRANSMISSION SYSTEMS
INC., as Guarantor
      By:         Name:         Title:           BORGWARNER TURBO SYSTEMS INC.,
as Guarantor
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            BRONSON SPECIALTIES INC., as Guarantor
      By:         Name:         Title:           BWA TURBO SYSTEMS HOLDING
CORPORATION, as Guarantor
      By:         Name:         Title:           KUHLMAN CORPORATION, as
Guarantor
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            JPMORGAN CHASE BANK, AS RETIRING EXISTING ADMINISTRATIVE AGENT,
RETIRING ISSUING BANK AND RETIRING SWINGLINE LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            BANK OF AMERICA, N.A., AS REPLACEMENT ADMINISTRATIVE AGENT
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            BANK OF AMERICA, N.A., AS REPLACEMENT ISSUING BANK AND SWING LINE
LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            BANK OF AMERICA, N.A., AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            DEUTSCHE BANK AG NEW YORK BRANCH, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            CITIBANK, N.A., AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            JPMORGAN CHASE BANK, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            MERRILL LYNCH BANK USA, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            CALYON NEW YORK BRANCH, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            WACHOVIA BANK, NATIONAL ASSOCIATION, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            BANK OF CHINA, NEW YORK BRANCH, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            THE BANK OF TOKYO-MITSUBISHI, LTD., CHICAGO BRANCH, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            CREDIT SUISSE FIRST BOSTON, ACTING THROUGH ITS CAYMAN ISLANDS
BRANCH, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            MIZUHO CORPORATE BANK, LTD., AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            MORGAN STANLEY BANK, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            SUMITOMO MITSUI BANKING CORPORATION, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            UBS LOAN FINANCE LLC, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            ABN AMRO BANK N.V., AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            THE BANK OF NEW YORK, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            BARCLAYS BANK PLC, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            DRESDNER BANK AG, NEW YORK AND GRAND CAYMAN BRANCHES, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            KEYBANK NATIONAL ASSOCIATION, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            MELLON BANK, N.A., AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            NORTHERN TRUST COMPANY, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            THE ROYAL BANK OF SCOTLAND PLC, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            SANPAOLO IMI S.P.A., AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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            BANCA DI ROMA — CHICAGO BRANCH, AS A LENDER
      By:         Name:         Title:        

BorgWarner Inc.
Amendment No. 1 and Consent
Signature Pages

 

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Exhibit A
(to Amendment No. 1 and Consent)
[Amended Credit Agreement attached.]

 

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Exhibit B
(to Amendment No. 1 and Consent)
Exhibit C
(to Amended Credit Agreement)
[Execution copy of Guaranty Agreement attached.]