Exhibit 10.1
EXECUTION COPY
AMENDMENT NO. 2
Dated as of June 30, 2010
to
CREDIT AGREEMENT
Dated as of March 28, 2008
          THIS AMENDMENT NO. 2 (this “Amendment”) is made as of June 30, 2010 by
and among Hillenbrand, Inc. (formerly named Batesville Holdings, Inc.) (the
“Borrower”), the financial institutions listed on the signature pages hereof
(collectively, the “Lenders”), Citibank, N.A. (“Citibank”) in its capacity as
resigning agent (the “Resigning Agent”), and JPMorgan Chase Bank, N.A.
(“JPMorgan”) in its capacity as successor agent for the Lenders (the “Successor
Agent”), under that certain Credit Agreement dated as of March 28, 2008 by and
among the Borrower, the Lenders and Citibank, as amended by Letter Agreement
No. 1, dated as of December 16, 2009 (as may be further amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”). Capitalized terms
used herein and not otherwise defined herein shall have the respective meanings
given to them in the Credit Agreement.
          WHEREAS, the Borrower, the Required Lenders, the Resigning Agent and
the Successor Agent have agreed to make certain amendments to the Credit
Agreement;
          WHEREAS, the parties hereto have agreed to such amendments, including
the appointment of a successor Agent, on the terms and conditions set forth
herein;
          NOW, THEREFORE, in consideration of the premises set forth above, the
terms and conditions contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto have agreed to enter into this Amendment.
          1. Resignation of Agent and Appointment of Successor Agent. Citibank
resigns as Agent, JPMorgan agrees to be successor Agent and is appointed as
successor Agent by the Required Lenders, and JPMorgan shall be the Agent for all
purposes under the Loan Documents, all effective as of the date of satisfaction
of the conditions precedent set forth in Section 3 below (the “Effective Date”).
          2. Amendments to Credit Agreement. Effective as of the Effective Date,
the Credit Agreement is amended as follows:
          (a) Section 1.01 of the Credit Agreement is amended to add the
following definitions thereto and, where applicable, to replace the
corresponding previously existing definitions:
     “Agent’s Account” means such account of the Agent as is designated in
writing from time to time by the Agent to the Borrower and the Lenders for such
purpose.

 

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     “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 Rate in effect
on such day plus 1/2 of 1% and (c) the Eurodollar Rate (as adjusted pursuant to
Section 2.11(a)) 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%, provided
that, for the avoidance of doubt, the Eurodollar Rate for any day shall be based
on the rate appearing on Reuters LIBOR01 Page (and any successor page) at
approximately 11:00 a.m. London time on such day. Any change in the Base Rate
due to a change in the Prime Rate, the Federal Funds Rate or the Eurodollar Rate
shall be effective from and including the effective date of such change in the
Prime Rate, the Federal Funds Rate or the Eurodollar Rate, respectively.
     “Defaulting Lender” means any Lender, as determined by the Agent, that has
(a) failed to fund any portion of its Advances or participations in Letters of
Credit within three (3) Business Days of the date required to be funded by it
hereunder, (b) notified the Borrower, the Agent, any Issuing Bank 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
(3) 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
Advances and participations in then outstanding Letters of Credit, (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 (3) Business Days of the date when due,
unless the subject of a good faith dispute, or (e) (i) become 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, administrator, assignee for the benefit of creditors or similar Person
charged with reorganization or liquidation of its business 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, administrator, assignee
for the benefit of creditors or similar Person charged with reorganization or
liquidation of its business 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.
     “Fee Letters” means the fee letter among the Borrower, JPMorgan Chase Bank,
N.A. and J.P. Morgan Securities Inc. dated June 25, 2010.
     “L/C Exposure” means, at any time, the sum of (a) the aggregate Available
Amount of all outstanding Letters of Credit at such time plus (b) the aggregate
principal amount of all Advances made by each Issuing Bank pursuant to
Section 2.03(c) that have not been reimbursed by or on behalf of the Borrower at
such time. The L/C Exposure of any Lender at any time shall be its Ratable Share
of the total L/C Exposure at such time.
     “Prime Rate” means the rate of interest per annum publicly announced from
time to time by JPMorgan Chase Bank, N.A. as its prime rate in effect at its
principal office in New York City; each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as being
effective.
     “Reference Bank” means JPMorgan Chase Bank, N.A. and Bank of America, N.A.

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     “Specified Indebtedness” means Indebtedness issued by the Borrower or any
Subsidiary pursuant to (i) an offering of debt securities in the capital markets
registered under the Securities Act of 1933, as amended, or exempt therefrom in
reliance upon Rule 144A thereunder or (ii) a private placement of debt
securities by the Borrower or such Subsidiary directly to institutional
investors.
          (b) Section 1.03 of the Credit Agreement is amended to add the
following sentence to the end thereof:
     “Notwithstanding any other provision contained herein, all terms of an
accounting or financial nature used herein shall be construed, and all
computations of amounts and ratios referred to herein shall be made, without
giving effect to any election under Accounting Standards Codification 825-10-25
(previously referred to as Statement of Financial Accounting Standards 159) (or
any other Accounting Standards Codification or Financial Accounting Standard
having a similar result or effect) to value any Indebtedness or other
liabilities of the Borrower or any of its Subsidiaries at “fair value”, as
defined therein.”
          (c) Article II of the Credit Agreement is amended to add the following
as a new Section 2.20 thereof:
     “SECTION 2.20. 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) if any L/C Exposure exists at the time a Lender is a Defaulting Lender,
the Borrower shall within three (3) Business Days following notice by the Agent
cash collateralize such Defaulting Lender’s L/C Exposure in accordance with the
procedures set forth in Section 6.02 for so long as such L/C Exposure is
outstanding; and
     (b) no Issuing Bank shall be required to issue, amend or increase any
Letter of Credit unless it is satisfied that cash collateral will be provided by
the Borrower in accordance with Section 2.20(a).”
          (d) Section 5.01 (e) of the Credit Agreement is amended to add the
word “not” immediately prior to the phrase “reasonably be expected to have a
Material Adverse Effect” appearing in the clause (iii) thereof.
          (e) Section 5.02(h)(i) of the Credit Agreement is amended to insert
the words “or licenses” after the word “leases” in clause (A)(x) thereof.
          (f) Section 5.02(h)(i)(C) of the Credit Agreement is amended to
(i) insert the word “such” in front of the words “negative pledge” and
(ii) insert the following at the end of clause (C) thereof:
     “or (z) incurred or provided in favor of any holder of Specified
Indebtedness permitted under Section 5.02(c)(vi) or 5.02(c)(x), and
provided, further that this subsection (i) shall not apply to:
(1) any restriction or conditions contained in any Contractual Obligation of any
Subsidiary if such Contractual Obligation relates to Liens existing on property
at

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the time of acquisition thereof by the Borrower or any Subsidiary and not
created in contemplation thereof;
(2) any restriction or conditions contained in any Contractual Obligation of any
Subsidiary if such Contractual Obligation relates to Liens existing on property
of a Subsidiary at the time such Subsidiary is merged or consolidated with or
into, or acquired by, the Borrower or any Subsidiary or becomes a Subsidiary and
not created in contemplation thereof;
(3) any restriction or conditions contained in any Contractual Obligation
relating to or governing any equity interests, securities or Indebtedness of a
Subsidiary existing at the time such Subsidiary is merged or consolidated with
or into, or acquired by, the Borrower or any Subsidiary or becomes a Subsidiary
and not entered into in contemplation thereof;
(4) customary provisions limiting assignments of agreements in the ordinary
course of business;
(5) customary restrictions on cash or other deposits (including escrowed funds)
received by Borrower or any Subsidiary in the ordinary course of business; or
(6) customary provisions in joint venture agreements and other similar
agreements concerning joint ventures and applicable solely to such joint
venture;”
          (g) Section 5.02(h)(ii) of the Credit Agreement is further amended to
restate the proviso set forth therein in its entirety as follows:
          “; provided that this subsection (ii) shall not prohibit (x) the grant
of Liens otherwise permitted under Section 5.02(a) and (y) any such requirement
to grant a Lien in favor of any holder of Specified Indebtedness permitted under
Section 5.02(c)(vi) or 5.02(c)(x).”
          (h) Section 8.01 of the Credit Agreement is amended to delete the name
“Citibank, N.A.” appearing therein and to replace such name with the name
“JPMorgan Chase Bank, N.A.”.
          (i) Section 9.02 of the Credit Agreement is amended to (i) delete the
phrase “Two Penns Way, New Castle, 19720, Attention: Bank Loan Syndications
Department” appearing in clause (a) thereof and to replace such phrase with the
phrase “10 South Dearborn, Chicago, Illinois 60603, Attention Hiral Patel, Loan
and Agency Services” and (ii) delete the first sentence of clause (b) thereof in
its entirety.
          (j) Schedule I to the Credit Agreement is deleted in its entirety and
replaced with Schedule I attached hereto.
          3. Conditions of Effectiveness. The effectiveness of this Amendment is
subject to the conditions precedent that (i) JPMorgan shall have received
(a) counterparts of this Amendment duly executed by the Borrower, the Required
Lenders, the Resigning Agent and the Successor Agent and the Consent and
Reaffirmation attached hereto duly executed by the Guarantors and (b) such other
instruments and documents as are reasonably requested by the Successor Agent and
(ii) the Borrower shall have paid, to the extent invoiced, not less than one
(1) Business Day prior to the date hereof, all reasonable and documented
out-of-pocket expenses of the Resigning Agent and the Successor Agent

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(including attorneys’ fees and expenses) in connection with this Amendment.
          4. Indemnification. For the avoidance of doubt, the provisions of
Sections 9.04(a), (b), (d) and (e) and Article VIII of the Credit Agreement
shall (i) inure to the Successor Agent’s benefit and (ii) continue to inure to
the Resigning Agent’s benefit as to any actions taken or omitted to be taken by
it while it was Agent under the Credit Agreement and the provisions of
Section 9.04(e) of the Credit Agreement shall continue inure to Citibank’s
benefit as to any actions taken or omitted to be taken by it as an Issuing Bank
under the Credit Agreement.
          5. Representations and Warranties of the Borrower. The Borrower
represents and warrants that (a) the representations and warranties contained in
Section 4.01 of the Credit Agreement are correct with the same effect as though
made on and as of the date hereof except (i) to the extent that such
representations and warranties specifically refer to an earlier date, such
representations and warranties are true and correct as of such earlier date and
(ii) the representations and warranties contained in subsections (i) and (ii) of
Section 4.01(d) of the Credit Agreement shall be deemed to refer to the most
recent financial statements furnished pursuant to subsections (i) and (ii),
respectively, of Section 5.01(a) of the Credit Agreement, before and after
giving effect to this Amendment, and (b) no Default has occurred and is
continuing.
          6. Reference to and Effect on the Credit Agreement.
          (a) Upon the effectiveness hereof, (i) each reference to the Credit
Agreement in the Credit Agreement or any other Loan Document shall mean and be a
reference to the Credit Agreement as amended hereby and (ii) each reference to
“Agent” in the Credit Agreement or any other Loan Document shall mean and be a
reference to JPMorgan in its capacity as successor Agent for the Lenders.
          (b) Except as specifically amended above, the Credit 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.
          (c) The execution, delivery and effectiveness of this Amendment shall
not operate as a waiver of any right, power or remedy of the 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.
          7. Governing Law. This Amendment shall be construed in accordance with
and governed by the law of the State of New York.
          8. 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.
          9. 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. Signatures delivered by facsimile or PDF shall have the same force
and effect as manual signatures delivered in person.
[Signature Pages Follow]

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          IN WITNESS WHEREOF, this Amendment has been duly executed as of the
day and year first above written.

            HILLENBRAND, INC.,
as the Borrower
      By:   /s/ Mark R. Lanning         Name:   Mark R. Lanning        Title:  
Vice President Investor Relations and Treasurer     

Signature Page to Amendment No. 2
Hillenbrand, Inc.
Credit Agreement dated as of March 28, 2008

 

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            CITIBANK, N.A.,
as Resigning Agent
      By:   /s/ Blake Gronich       Name:   Blake Gronich        Title:   Vice
President     

Signature Page to Amendment No. 2
Hillenbrand, Inc.
Credit Agreement dated as of March 28, 2008

 

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            JPMORGAN CHASE BANK, N.A.,
as Successor Agent
      By:   /s/ Dana J. Moran       Name:   Dana J. Moran       Title:   Vice
President       JPMORGAN CHASE BANK, N.A.,
as a Lender
      By:   /s/ Dana J. Moran       Name:   Dana J. Moran       Title:   Vice
President    

Signature Page to Amendment No. 2
Hillenbrand, Inc.
Credit Agreement dated as of March 28, 2008

 

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            BANK OF AMERICA, N.A.,
as a Lender
      By:   /s/ Chris Burns        Name:   Chris Burns        Title:   Vice
President     

Signature Page to Amendment No. 2
Hillenbrand, Inc.
Credit Agreement dated as of March 28, 2008

 

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            PNC BANK, NATIONAL ASSOCIATION,
as a Lender
      By:   /s/ Jeffrey P. Fisher       Name:   Jeffrey P. Fisher       Title:  
Assistant Vice President    

Signature Page to Amendment No. 2
Hillenbrand, Inc.
Credit Agreement dated as of March 28, 2008

 

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            FIFTH THIRD BANK,
as a Lender
      By:   /s/ David O’Neal        Name:   David O’Neal       Title:   Vice
President    

Signature Page to Amendment No. 2
Hillenbrand, Inc.
Credit Agreement dated as of March 28, 2008

 

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            U.S. BANK NATIONAL ASSOCIATION,
as a Lender
      By:   /s/ Michael P. Dickman       Name:   Michael P. Dickman      
Title:   Vice President    

Signature Page to Amendment No. 2
Hillenbrand, Inc.
Credit Agreement dated as of March 28, 2008

 

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            REGIONS BANK,
as a Lender
      By:   /s/ Eric Harvey        Name:   Eric Harvey        Title:   Vice
President     

Signature Page to Amendment No. 2
Hillenbrand, Inc.
Credit Agreement dated as of March 28, 2008

 

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            THE NORTHERN TRUST COMPANY,
as a Lender
      By:   /s/ Phillip McCaulay        Name:   Phillip McCaulay       Title:  
Vice President    

Signature Page to Amendment No. 2
Hillenbrand, Inc.
Credit Agreement dated as of March 28, 2008

 

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            WILLIAM STREET LLC,
as a Lender
      By:   /s/ Mark Walton       Name:   Mark Walton       Title:   Authorized
Signatory    

Signature Page to Amendment No. 2
Hillenbrand, Inc.
Credit Agreement dated as of March 28, 2008

 

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            RBS CITIZENS, N.A.,
as a Lender
      By:   /s/ André A. Nazareth        Name:   André A. Nazareth       
Title:   Senior Vice President    

Signature Page to Amendment No. 2
Hillenbrand, Inc.
Credit Agreement dated as of March 28, 2008

 

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CONSENT AND REAFFIRMATION
          The undersigned hereby acknowledges receipt of a copy of the foregoing
Amendment No. 2 to the Credit Agreement dated as of March 28, 2008 (the “Credit
Agreement”) by and among Batesville Holdings, Inc. (predecessor to Hillenbrand,
Inc.) (the “Borrower”), the financial institutions from time to time party
thereto (the “Lenders”) and Citibank, N.A. (predecessor to JPMorgan Chase Bank,
N.A.), as Agent (the “Agent”), which Amendment No. 2 is dated as of June 30,
2010 (the “Amendment”). Capitalized terms used in this Consent and Reaffirmation
and not defined herein shall have the meanings given to them in the Credit
Agreement. Without in any way establishing a course of dealing by the Agent or
any Lender, each of the undersigned consents to the Amendment and reaffirms the
terms and conditions of the Credit Agreement (including, but not limited to, the
Guaranty) and any other Loan Document executed by it and acknowledges and agrees
that such agreements and each and every such 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. 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.
Dated: June 30, 2010
[Signature Page Follows]

 

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            BATESVILLE SERVICES, INC., as Guarantor
      By:   /s/ Mark R. Lanning         Name:   Mark R. Lanning        Title:  
Vice President and Treasurer        K-TRON INTERNATIONAL, INC., as Guarantor
      By:   /s/ Mark R. Lanning         Name:   Mark R. Lanning        Title:  
Assistant Treasurer        K-TRON INVESTMENT CO., as Guarantor
      By:   /s/ Mark R. Lanning         Name:   Mark R. Lanning        Title:  
Assistant Treasurer        PENNSYLVANIA CRUSHER CORPORATION, as Guarantor
      By:   /s/ Mark R. Lanning         Name:   Mark R. Lanning        Title:  
Assistant Treasurer     

Signature Page to Consent and Reaffirmation to Amendment No. 2
Hillenbrand, Inc.
Credit Agreement dated as of March 28, 2008

 

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SCHEDULE I
HILLENBRAND, INC.
FIVE YEAR CREDIT AGREEMENT
APPLICABLE LENDING OFFICES

                              Revolving   Letter of         Name of Initial  
Credit   Credit       Eurodollar Lending Lender   Commitment   Commitment  
Domestic Lending Office   Office
JPMorgan
Chase Bank,
N.A.

  $ 67,500,000     $ 30,000,000     10 South Dearborn St.
Chicago, IL 60603
Attn: Hiral Patel
T: 312-732-6221
F: 312-385-7096   10 South Dearborn St.
Chicago, IL 60603
Attn: Hiral Patel
T: 312-732-6221
F: 312-385-7096
RBS Citizens,
N.A.
  $ 67,500,000             27777 Franklin Road
MH1970
Southfield, MI 48034
T: 248-226-7724
F: 248-228-9402   27777 Franklin Road
MH1970
Southfield, MI 48034
T: 248-226-7724
F: 248-228-9402
Bank of
America, N.A.
  $ 45,000,000     $ 10,000,000     101 N. Tryon Street, 4th
Floor Charlotte, NC 28255
Attn: Manpreet Kaur
T: 415-436-4777
ext. 8544
F: 214-290-9446   101 N. Tryon Street, 4th
Floor Charlotte, NC 28255
Attn: Manpreet Kaur
T: 415-436-4777
ext. 8544
F: 214-290-9446
PNC Bank,
National
Association
  $ 45,000,000     $ 10,000,000     201 East Fifth Street
Cincinnati, OH 45202
Attn: Marc Accamando
T: 412-768-6214
F: 412-768-4586   201 East Fifth Street
Cincinnati, OH 45202
Attn: Marc Accamando
T: 412-768-6214
F: 412-768-4586
Fifth Third
Bank
  $ 45,000,000             38 Fountain Square Plaza
Cincinnati, OH 45263
Attn: Joyce Elam
T: 513-358-7336
F: 513-358-3479   38 Fountain Square Plaza
Cincinnati, OH 45263
Attn: Joyce Elam
T: 513-358-7336
F: 513-358-3479
U.S. Bank
National
Association
  $ 45,000,000             One U.S. Bank Plaza
SL-MO-T12M
St. Louis, MO 63101
Attn: Barbara Campbell
T: 920-237-7370
F: 920-237-7993   One U.S. Bank Plaza
SL-MO-T12M
St. Louis, MO 63101
Attn: Barbara Campbell
T: 920-237-7370
F: 920-237-7993
Regions Bank
  $ 35,000,000             417 North 20th Street
Birmingham, AL 35203
Attn: Ashley Lewis
T: 205-420-5574
F: 205-801-5250   417 North 20th Street
Birmingham, AL 35203
Attn: Ashley Lewis
T: 205-420-5574
F: 205-801-5250
The Northern
Trust
Company
  $ 25,000,000             50 S. LaSalle Street
Chicago, IL 60675
Attn: Ms. Sharon Jackson
T: 312-630-1609
F: 312-630-1566   50 S. LaSalle Street
Chicago, IL 60675
Attn: Ms. Sharon Jackson
T: 312-630-1609
F: 312-630-1566

 

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                              Revolving   Letter of         Name of Initial  
Credit   Credit       Eurodollar Lending Lender   Commitment   Commitment  
Domestic Lending Office   Office
William Street
LLC
  $ 25,000,000             1 New York Plaza,
40th Floor
New York, NY 10004
Attn: Pedro Ramirez
T: 917-343-8319
F: 212-428-1243   1 New York Plaza,
40th Floor
New York, NY 10004
Attn: Pedro Ramirez
T: 917-343-8319
F: 212-428-1243
Total:
  $ 400,000,000     $ 50,000,000