Exhibit 10.1
 
 
 
 
AMENDMENT NO. 1
 
TO
 
SECOND AMENDED AND RESTATED CREDIT AGREEMENT AND SECOND AMENDED AND RESTATED
PLEDGE AND SECURITY AGREEMENT
 
This AMENDMENT NO. 1 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT AND SECOND
AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT (this “Amendment”) dated as
of September 12, 2014 is among Meritor, 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, N.A., 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” referred to below.
 
WHEREAS, the signatories hereto are parties to that certain Second Amended and
Restated Credit Agreement, dated as of February 13, 2014 (the “Credit
Agreement”), among the Borrowers, the financial institutions from time to time
parties thereto (the “Lenders”) and the Administrative Agent;
 
WHEREAS, the Borrowers wish to amend the Credit Agreement and the Pledge and
Security Agreement in certain respects, and the Lenders party hereto and the
Administrative Agent are willing to amend the Credit Agreement and the Pledge
and Security 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 to Credit Agreement. Upon and subject to the satisfaction of the
conditions precedent set forth in Section 3 below, the Credit Agreement shall be
and hereby is amended as follows:
 
(a) Section 1.1 of the Credit Agreement is hereby amended to insert the
following definition in the appropriate alphabetical order:
 
“Amendment No. 1 Effective Date” means September 12, 2014.
 
(b) The definition of “Foreign Obligations” appearing in Section 1.1 of the
Credit Agreement is hereby amended and restated in its entirety to read as
follows:
 
“Foreign Obligations” means all Hedging Obligations and all Foreign Treasury
Obligations, in each case of any Foreign Subsidiary owing to any Lender or any
Affiliate of any Lender.
 
 
   
 
 

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(c) Section 7.3(E)(ii) of the Credit Agreement is hereby amended to add the
following immediately before the semi-colon appearing at the end thereof:
 
and (f) an equity Investment by Meritor Holdings, LLC in Arvinmeritor Sweden AB
and arising solely as a result of the recharacterization of that certain
intercompany loan from Meritor Holdings, LLC to Arvinmeritor Sweden AB in the
aggregate principal amount of $59,897,735 as of the Amendment No. 1 Effective
Date.
 
(d) Section 7.3(L)(ii) of the Credit Agreement is hereby amended to (x) insert a
reference to “(A)” immediately after the phrase “in addition to the foregoing,”
appearing at the beginning thereof and (y) insert the following immediately
before the semi-colon appearing at the end thereof:
 
and (B) the Company may repurchase shares of Capital Stock of the Company on any
date (the “Repurchase Date”) for a purchase price not to exceed the following
amount (if positive):
 
 
(1)
the lesser of (x) $210,000,000 and (y) the amount of the Company’s free cash
flow (which shall mean the Company’s cumulative cash flow, taking into account
cash flow generation and losses, provided by and used for operating activities
minus Capital Expenditures), for the period commencing on June 30, 2014 through
and including the last day of the most recently ended fiscal quarter prior to
the Repurchase Date for which financial statements are publicly available,

 
 
minus

 
 
(2)
the aggregate amount of any repurchases made pursuant to this Section
7.3(L)(ii)(B) immediately prior to the Repurchase Date;

 
provided that in the case of any such repurchase under this Section
7.3(L)(ii)(B), (I) no Default or Unmatured Default shall have occurred and be
continuing on the date of such repurchase or would result therefrom, (II) the
Company shall not use proceeds of any Loans for any such repurchase; and (III)
no such repurchase shall be made unless as of the last day of the most recently
ended fiscal quarter prior to the Repurchase Date for which financial statements
are publicly available, and after giving effect to such repurchase on a pro
forma basis (as if such repurchase and all payments in connection therewith had
occurred on the last day of such fiscal quarter), the Company’s net debt (which
shall mean the Company’s total short term and long term debt plus the Company’s
pension assets, pension liability, retiree medical liability and other
retirement benefits minus the Company’s cash and Cash Equivalent Investments)
shall be less than $1,500,000,000.
 
(e) Section 7.3(L)(iv) of the Credit Agreement is hereby amended to delete the
reference to “in an aggregate amount for this clause (iv) of up to $100,000,000”
appearing in clause (c) thereof and to replace it with “in an aggregate amount
for this clause (c) from and after the Amendment No. 1 Effective Date of up to
$100,000,000”.
 
 
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2. Amendment to Pledge and Security Agreement. Upon and subject to the
satisfaction of the conditions precedent set forth in Section 3 below, the
Pledge and Security Agreement shall be and hereby is amended to insert a new
Section 4.14 therein as follows:
 
4.14 Aircraft. Each Grantor will, upon the Administrative Agent’s request,
execute and deliver to the Administrative Agent such documents, agreements and
instruments, and will take such further actions (including, without limitation,
the filing of a mortgage filed with the Federal Aviation Administration), which
the Administrative Agent may, from time to time, reasonably request, to ensure
perfection and priority of the Liens hereunder in respect of Collateral
comprised of aircraft or aircraft engines, all at the expense of the Borrower.
 
3. Conditions Precedent to Amendment. This Amendment shall become effective as
of the date first above written if, and only if on such date:
 
(a) The Administrative Agent has received duly executed copies of this Amendment
from the Borrowers, the Required Lenders and the Administrative Agent.
 
(b) The Administrative Agent has received duly executed copies of the Consent
and Reaffirmation attached hereto from each Subsidiary Guarantor.
 
(c) The Administrative Agent shall have received, for the account of each Lender
that executes and delivers its signature page hereto on or before the date of
this Amendment, an amendment fee in an amount equal to 0.05% of such Lender’s
Revolving Loan Commitment under the Credit Agreement immediately prior to the
date of this Amendment.
 
(d) The Company shall have paid all fees and expenses (including, to the extent
invoiced, reimbursement of fees and expenses of the Administrative Agent’s
counsels) in connection with this Amendment and the other Loan Documents.
 
4. 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 acts (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,
 
 
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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) As of the date hereof and after giving effect to the terms of this
Amendment, (i) each representation and warranty by each Borrower set forth in
the Credit Agreement (as amended hereby) and in the other Loan Documents to
which such Borrower is a party is true and correct 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) and (ii) no Default or Unmatured Default
exists under the terms of the Credit Agreement (as amended hereby).
 
5. Reference to and Effect on the Credit Agreement and the Pledge and Security
Agreement.
 
(a) Upon the effectiveness of Section 1 hereof, (i) 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 and (ii) each reference in the Credit Agreement to “the Pledge and
Security Agreement” shall mean and be a reference to the Pledge and Security
Agreement, as amended hereby. This Amendment is a Loan Document pursuant to the
Credit Agreement and shall (unless expressly indicated herein or therein) be
construed, administered, and applied, in accordance with all of the terms and
provisions of the Credit Agreement.
 
(b) Except as specifically amended above, the Credit Agreement, the Pledge and
Security Agreement, 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 (i) agrees that this Amendment and the transactions contemplated
hereby shall not limit or diminish the obligations of such Borrower arising
under or pursuant to the Credit Agreement and the other Loan Documents to which
it is a party, (ii) reaffirms its obligations under the Credit Agreement and
each and every other Loan Document to which it is a party (including, without
limitation, each applicable Collateral Document), (iii) 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.
 
 
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(c) Except as expressly provided herein, the execution, delivery and
effectiveness of this Amendment (or any provision hereof) 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, the Pledge and
Security Agreement or any other documents, instruments and agreements executed
and/or delivered in connection therewith.
 
6. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
 
7. 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.
 
8. 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.
 
 
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IN WITNESS WHEREOF, this Amendment has been duly executed and delivered on the
date first above written.
 
 

 
MERITOR, INC., as a Borrower
               
 
By: /s/ Carl D. Anderson, II
 
Name: Carl D. Anderson, II
 
Title: Vice President and Treasurer
   

 
 
 

 
ARVINMERITOR FINANCE IRELAND, as a Borrower
               
 
By: /s/ Todd Chirillo
 
Name: Todd Chirillo
 
Title: Director
   

 
 
Amendment No. 1 to Second Amended and Restated Credit Agreement
and Second Amended and Restated Pledge and Security Agreement
 
 
 

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JPMORGAN CHASE BANK, N.A.,
 
as Administrative Agent, Issuing Bank,
Swing Line Lender and as a Lender
           
 
By:  /s/ Robert P. Kellas
 
Name:  Robert P. Kellas
 
Title:  Executive Director   
   

 
Amendment No. 1 to Second Amended and Restated Credit Agreement
and Second Amended and Restated Pledge and Security Agreement
 
 

 
 

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CITICORP NORTH AMERICA, INC., as a Lender
               
 
By:  /s/ Wayne Beckmann
 
Name:  Wayne Beckmann
 
Title:  Managing Director
   

 
Amendment No. 1 to Second Amended and Restated Credit Agreement
and Second Amended and Restated Pledge and Security Agreement
 

 
 

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BANK OF AMERICA, N.A., as a Lender
               
 
By: /s/ Brian Lukehart
 
Name: Brian Lukehart
 
Title: Director
   

Amendment No. 1 to Second Amended and Restated Credit Agreement
and Second Amended and Restated Pledge and Security Agreement
 

 
 

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ROYAL BANK OF CANADA, as a Lender
               
 
By: /s/ Edward D. Herko
 
Name: Edward D. Herko
 
Title: Authorized Signatory
   

Amendment No. 1 to Second Amended and Restated Credit Agreement
and Second Amended and Restated Pledge and Security Agreement
 

 
 

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THE ROYAL BANK OF SCOTLAND PLC, as a Lender
               
 
By: /s/ James Welch
 
Name: James Welch
 
Title: Director
   

Amendment No. 1 to Second Amended and Restated Credit Agreement
and Second Amended and Restated Pledge and Security Agreement
 
 
 

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BNP PARIBAS, as a Lender
               
 
By: /s/ Todd Grossnickle
 
Name: Todd Grossnickle
 
Title: Vice President
   

 

   
 
By: /s/ Michael Hoffman
 
Name: Michael Hoffman
 
Title: Vice President
   

Amendment No. 1 to Second Amended and Restated Credit Agreement
and Second Amended and Restated Pledge and Security Agreement

 
 

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PNC BANK, NATIONAL ASSOCIATION, as a Lender
               
 
By: /s/ Scott M. Kowalski
 
Name: Scott M. Kowalski
 
Title: Senior Vice President
   

Amendment No. 1 to Second Amended and Restated Credit Agreement
and Second Amended and Restated Pledge and Security Agreement
 
 

 
 

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FIFTH THIRD BANK, as a Lender
               
 
By: /s/ Yael Eisenberg
 
Name: Yael Eisenberg
 
Title: Assistant Vice President
   

Amendment No. 1 to Second Amended and Restated Credit Agreement
and Second Amended and Restated Pledge and Security Agreement

 
 

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COMERICA BANK, as a Lender
               
 
By: /s/ Nicole Swigert
 
Name: Nicole Swigert
 
Title: Vice President
   

Amendment No. 1 to Second Amended and Restated Credit Agreement
and Second Amended and Restated Pledge and Security Agreement

 
 

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THE HUNTINGTON NATIONAL BANK, as a Lender
               
 
By: /s/ Dan Swanson
 
Name: Dan Swanson
 
Title: Staff Officer
   

Amendment No. 1 to Second Amended and Restated Credit Agreement
and Second Amended and Restated Pledge and Security Agreement

 
 

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UBS AG, STAMFORD BRANCH, as a Lender
               
 
By: /s/ Lana Gifas
 
Name: Lana Gifas
 
Title: Director
   

 
By: /s/ Jennifer Anderson
 
Name: Jennifer Anderson
 
Title: Associate Director
   

Amendment No. 1 to Second Amended and Restated Credit Agreement
and Second Amended and Restated Pledge and Security Agreement

 
 

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CAPITAL ONE BUSINESS CREDIT CORP., as a Lender
               
 
By: /s/ Ron Walker
 
Name: Ron Walker
 
Title: SVP
   

Amendment No. 1 to Second Amended and Restated Credit Agreement
and Second Amended and Restated Pledge and Security Agreement