Document:

Exhibit 10.1 - Calpine Revolver Amendment No.2

EXHIBIT 10.1

AMENDMENT NO. 2
TO
CREDIT AGREEMENT
This AMENDMENT NO. 2 to the Credit Agreement, dated as of July 30, 2014 (this “Amendment”), is entered into among CALPINE CORPORATION, a Delaware corporation (the “Borrower”), the Guarantors, GOLDMAN SACHS BANK USA., as administrative agent (in such capacity and including any successors in such capacity, the “Administrative Agent”), the New Revolving Lender and the existing Lenders under the Credit Agreement party hereto (the “Existing Lenders”), and amends the Credit Agreement, dated as of December 10, 2010 (as amended by Amendment No. 1 to Credit Agreement, dated as of June 27, 2013 and as may be further amended, supplemented or otherwise modified from time to time, the “Credit Agreement”) entered into among the Borrower, the institutions from time to time party thereto as Lenders, the Administrative Agent and Goldman Sachs Credit Partners L.P., as collateral agent.  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement.
W I T N E S S E T H:
WHEREAS, the Borrower has requested that (i) Crédit Agricole Corporate & Investment Bank become  a Lender (as defined in the Credit Agreement) under the Credit Agreement and provide a Revolving Commitment in an aggregate principal amount as set forth opposite its name on Exhibit B hereto (the “New Revolving Lender”) and (ii) certain of the Existing Lenders party hereto increase the aggregate principal amount of their Revolving Commitments in the amounts opposite their respective names on Exhibit A hereto (the “Affected Revolving Lenders”); 
WHEREAS, the New Revolving Lender has agreed (on a several and not joint basis), subject to the terms and conditions set forth herein and in the Credit Agreement, as amended by this Amendment, to provide a Revolving Commitment in the amount set forth opposite its name on Exhibit B hereto (the “New Revolving Lender Commitment”);
WHEREAS, each Affected Revolving Lender has agreed (on a several and not joint basis), subject to the terms and conditions set forth herein and in the Credit Agreement, as amended by this Amendment, to increase its Revolving Commitment in the amount set forth opposite such Affected Revolving Lender’s name on Exhibit A hereto (the “Increased Existing Revolving Lender Commitments” and, together with the New Revolving Lender Commitments, the “New Revolving Commitments”);
WHEREAS, after giving effect to this Amendment, the Revolving Commitments of each Existing Lender and the New Revolving Lender (collectively, the “Lenders”) shall be as set forth on Exhibit C hereto;
WHEREAS, pursuant to Section 9.1(a) of the Credit Agreement, (i) an Existing Lender may increase the aggregate principal amount of its Revolving Commitment under the Credit Agreement with the prior written consent of such Existing Lender and (ii) the Required 

        

Lenders, the Administrative Agent, the Fronting Banks and the Borrower may make certain other amendments to the Credit Agreement; and
WHEREAS, the Existing Lenders party hereto constituting at least the Required Lenders (the “Amendment No. 2 Required Lenders”), the Administrative Agent and the Fronting Banks, hereby consent to the amendments set forth herein;
NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the parties hereto hereby agree as follows:
Section 1.Amendments to the Credit Agreement
The Credit Agreement is, effective as of the Amendment No. 2 Effective Date, hereby amended to:
(a)    remove Schedule 1.1A (Revolving Commitment Amounts) and replace it in its entirety by new Schedule 1.1A attached hereto as Exhibit C;
(b)    add the following definition in alphabetical order to Section 1.1 (Defined Terms):
“Amendment No. 2 Effective Date”: means July 30, 2014.
(c)    remove the definition of “Total Revolving Commitments” and replace it in its entirety with the below:
“Total Revolving Commitments”: at any time, the aggregate amount of the Revolving Commitments then in effect. The Total Revolving Commitments on the Amendment No. 2 Effective Date are $1,500,000,000.
Section 2.    Consent to Amendments.  Pursuant to Section 9.1(a) of the Credit Agreement, the Administrative Agent, the Fronting Banks, the Borrower and each Required Amendment No. 2 Lender hereby consent to this Amendment, including, without limitation, the New Revolving Commitments, the amendments set forth in Section 1 hereof and the New Revolving Lender becoming a “Lender” under the Credit Agreement as amended hereby.  
Section 3.    New Revolving Commitments.  The New Revolving Lender has agreed (on a several and not joint basis), subject to the terms and conditions set forth herein and in the Credit Agreement, as amended by this Amendment, to provide the New Revolving Lender Commitment in the amount set forth opposite its name on Exhibit B hereto.  Each Affected Revolving Lender has agreed (on a several and not joint basis), subject to the terms and conditions set forth herein and in the Credit Agreement, as amended by this Amendment, to increase its Revolving Commitment in the amount set forth opposite such Affected Revolving Lender’s name on Exhibit A hereto and that from and after the Amendment No. 2 Effective Date its aggregate Revolving Commitment shall be in the amounts set forth opposite such Affected Revolving Lender’s name on Exhibit C hereto.  For the avoidance of doubt, nothing in this 

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Amendment shall reduce the aggregate amount of Incremental Revolving Facilities permitted to be obtained pursuant to Section 2.25 of the Credit Agreement.
Section 4.    Reallocation.  On the Amendment No. 2 Effective Date, the Borrower shall, in coordination with the Administrative Agent, repay outstanding Revolving Loans of the Existing Lenders that are not Affected Revolving Lenders, and incur additional Revolving Loans from the Affected Revolving Lenders and the New Revolving Lender to the extent necessary so that all of the Lenders participate in each outstanding Borrowing of Revolving Loans pro rata on the basis of their respective Revolving Commitments (after giving effect to any increase in the Total Revolving Commitments pursuant to this Amendment).  The participations in any outstanding Letters of Credit shall be adjusted in accordance with each Lender's Revolving Commitment Percentage as reallocated in accordance with such increase of the Total Revolving Commitments.
Section 5.    Conditions Precedent to the Effectiveness of this Amendment
This Amendment shall become effective as of the date first written above when, and only when, each of the following conditions precedent shall have been satisfied (the “Amendment No. 2 Effective Date”):
(a)    Executed Counterparts.  The Administrative Agent shall have received this Amendment, duly executed by the Borrower, the Guarantors, the Administrative Agent, the Fronting Banks, the Amendment No. 2 Required Lenders, the New Revolving Lender and each of the Affected Revolving Lenders;
(b)    No Default or Event of Default.  Before and after giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing under the Credit Agreement;
(c)    Representations and Warranties. The representations and warranties of the Borrower contained in Article 3 of the Credit Agreement and Section 6 of this Amendment or any other Loan Document shall be true and correct in all material respects (and in all respects if qualified by materiality) on and as of the Amendment No. 2 Effective Date, as if made on and as of such date and except to the extent that such representations and warranties specifically relate to a specific date, in which case such representations and warranties shall be true and correct in all material respects as of such specific date; provided, however, that references therein to the “Credit Agreement” shall be deemed to refer to the Credit Agreement as amended hereby and after giving effect to the consents and waivers set forth herein;
(d)    Officer’s Certificate. The Borrower shall have provided a certificate signed by a Responsible Officer of the Borrower certifying as to the satisfaction of the conditions set forth in paragraphs (b) and (c) of this Section 5; 
(e)    Fees and Expenses Paid.  The Borrower shall have paid all reasonable and documented out-of-pocket costs and expenses of the Administrative Agent in connection with the preparation, reproduction, execution and delivery of this Amendment (including, without 

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limitation, the reasonable and documented fees and out-of-pocket expenses of counsel for the Administrative Agent with respect thereto) and all other fees then due and payable to the Administrative Agent in connection with this Amendment; and
(f)    Flood Determinations.  The Administrative Agent shall have received with respect to each Mortgaged Property (i) a completed “life-of-loan” Federal Emergency Management Agency standard flood hazard determination (together with a notice about Special Flood Hazard Area status and flood disaster assistance duly executed by the applicable Loan Party relating thereto) and (ii) evidence of flood insurance satisfying the requirements of Section 5.4 of the Credit Agreement in form and substance reasonably satisfactory to the Administrative Agent.
(g)    Opinion of Counsel. The Administrative Agent shall have received an executed legal opinion of White & Case LLP, counsel to the Loan Parties, addressed to the Administrative Agent and the Lenders, and in form and substance reasonably satisfactory to the Administrative Agent.
(h)    Secretary’s Certificates.  The Administrative Agent shall have received a certificate of the secretary or assistant secretary (or other authorized person) of each Loan Party, dated the Amendment No. 2 Effective Date and certifying:
(A)    that (i) attached thereto is a true and complete copy of the certificate or articles of incorporation or organization such Loan Party certified as of a recent date by the secretary of state of the state of its organization (or that such organizational documents have not been amended since October 31, 2013),  and that such certificate or articles are in full force and effect, (ii) attached thereto is a true and complete copy of the by-laws or operating agreements of each Loan Party as in effect on the Amendment No. 2 Effective Date (or that such organizational documents have not been amended since October 31, 2013) and (iii) attached thereto is a true and complete copy of resolutions duly adopted by the board of directors (or other governing body) of each Loan Party authorizing the execution, delivery and performance of this Amendment and the other documents to be executed in connection herewith, to which such Loan Party is a party, and that such resolutions have not been modified, rescinded or amended and are in full force and effect, and
(B)    as to the incumbency and specimen signature of each officer executing this Amendment or any other document delivered in connection herewith on behalf of such Loan Party and signed by another officer as to the incumbency and specimen signature of the secretary or assistant secretary (or other authorized person) executing the certificate pursuant to this clause (g).
(i)    Good Standing Certificates.  The Administrative Agent shall have received certificates of good standing (to the extent such concept exists in such Loan Party’s state of organization) from the applicable secretary of state of the state of organization of each Loan Party.

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(j)    Mortgage Amendments.  The Borrower shall, or shall cause the applicable Guarantor to, enter into an amendment to such of the mortgages encumbering the Mortgaged Properties as the Administrative Agent may reasonably request based on the advice of local counsel in the jurisdiction in which each Mortgaged Property is located, in form reasonably acceptable to the Administrative Agent, together, in each case, with opinions of counsel with respect thereto and date-down or modification endorsement, or other title product where such an endorsement is unavailable, to the title policy insuring such mortgage.
Section 6.    Representations and Warranties
On and as of the Amendment No. 2 Effective Date, after giving effect to this Amendment, each Loan Party hereby represents and warrants to the Administrative Agent and each Lender as follows:
(a)    this Amendment has been duly authorized, executed and delivered by the each Loan Party and constitutes the legal, valid and binding obligations of the each Loan Party enforceable against the each Loan Party in accordance with its terms and the Credit Agreement as amended by this Amendment and constitutes the legal, valid and binding obligation of the each Loan Party enforceable against the each Loan Party in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar laws of general applicability relating to or limiting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law;
(b)    each of the representations and warranties contained in Section 3 (Representations and Warranties) of the Credit Agreement and each other Loan Document is true and correct in all material respects (and in all respects if qualified by materiality) on and as of the Amendment No. 2 Effective Date, as if made on and as of such date and except to the extent that such representations and warranties specifically relate to a specific date, in which case such representations and warranties shall be true and correct in all material respects as of such specific date; provided, however, that references therein to the “Credit Agreement” shall be deemed to refer to the Credit Agreement as amended hereby and after giving effect to the consents and waivers set forth herein; and
(c)    no Default or Event of Default has occurred, is continuing or existed immediately prior to giving effect to this Amendment.
Section 7.    Fees and Expenses
The Borrower agrees to pay in accordance with the terms of Section 9.5 (Payment of Expenses and Taxes) of the Credit Agreement all reasonable out-of-pocket costs and expenses of the Administrative Agent in connection with the preparation, reproduction, execution and delivery of this Amendment (including, without limitation, the reasonable and documented fees and out-of-pocket expenses of counsel for the Administrative Agent with respect thereto).  The Borrower also agrees to pay to the respective Lenders any costs of the type referred to in Section 

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2.20 of the Credit Agreement in connection with any repayment and/or Borrowing pursuant to Section 4 of this Amendment.
Section 8.    Reference to the Effect on the Loan Documents
(a)    As of the Amendment No. 2 Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, and each reference in the other Loan Documents to the Credit Agreement (including, without limitation, by means of words like “thereunder”, “thereof” and words of like import), shall mean and be a reference to the Credit Agreement as amended hereby, and this Amendment and the Credit Agreement shall be read together and construed as a single instrument.  Each of the table of contents and lists of Exhibits and Schedules of the Credit Agreement shall be amended to reflect the changes made in this Amendment as of the Amendment No. 2 Effective Date.
(b)    Except as expressly amended hereby or specifically waived above, all of the terms and provisions of the Credit Agreement and all other Loan Documents are and shall remain in full force and effect and are hereby ratified and confirmed.
(c)    The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Lenders (as such term is defined in the Credit Agreement and in this Amendment), the Borrower, the Guarantors, Lead Arrangers or the Administrative Agent under any of the Loan Documents, nor constitute a waiver or amendment of any other provision of any of the Loan Documents or for any purpose except as expressly set forth herein.
(d)    This Amendment is a Loan Document.
Section 9.    Reaffirmation
Each Loan Party hereby expressly acknowledges the terms of this Amendment and reaffirms, as of the date hereof, (i) the covenants and agreements contained in each Loan Document to which it is a party, as well as, with respect to the Letter of Credit Fees described therein, that certain Fee Letter, dated as of December 10, 2010, by and between Deutsche Bank AG New York Branch and the Borrower, including, in each case, such covenants and agreements as in effect immediately after giving effect to this Amendment and the transactions contemplated hereby and (ii) its guarantee of the Obligations (including, without limitation, the New Revolving Commitments and any Borrowings thereunder) under the Guarantee and Collateral Agreement, as applicable, and its grant of Liens on the Collateral to secure the Obligations (including, without limitation, the New Revolving Commitments and any Borrowings thereunder) pursuant to the Security Documents.
Section 10.    Execution in Counterparts
This Amendment may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  Signature 

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pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are attached to the same document.  Delivery of an executed counterpart by telecopy shall be effective as delivery of a manually executed counterpart of this Amendment.
Section 11.    Governing Law
THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
Section 12.    Section Titles
The section titles contained in this Amendment are and shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto, except when used to reference a section.  Any reference to the number of a clause, sub-clause or subsection of any Loan Document immediately followed by a reference in parenthesis to the title of the section of such Loan Document containing such clause, sub-clause or subsection is a reference to such clause, sub-clause or subsection and not to the entire section; provided, however, that, in case of direct conflict between the reference to the title and the reference to the number of such section, the reference to the title shall govern absent manifest error.  If any reference to the number of a section (but not to any clause, sub-clause or subsection there-of) of any Loan Document is followed immediately by a reference in parenthesis to the title of a section of any Loan Document, the title reference shall govern in case of direct conflict absent manifest error.
Section 13.    Notices
All communications and notices hereunder shall be given as provided in the Credit Agreement.
Section 14.    Severability
The fact that any term or provision of this Agreement is held invalid, illegal or unenforceable as to any person in any situation in any jurisdiction shall not affect the validity, enforceability or legality of the remaining terms or provisions hereof or the validity, enforceability or legality of such offending term or provision in any other situation or jurisdiction or as applied to any person.
Section 15.    Successors
The terms of this Amendment shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and assigns.

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Section 16.    Jurisdiction; Waiver of Jury Trial
The jurisdiction and waiver of right to trial by jury provisions in Sections 9.12 and 9.16 of the Credit Agreement are incorporated herein by reference mutatis mutandis.
Section 17.    Loss of FATCA Grandfather Status
The Borrower has determined that the modifications and amendments to the Credit Agreement contemplated by this Amendment result in a material modification of the Credit Agreement for purposes of Treasury Regulation Section 1.1471-2(b)(2)(iii).  Accordingly, neither the  Revolving Commitment nor any Revolving Loan, Swing Line Loan nor any Letter of Credit issued under or pursuant to the Credit Agreement shall constitute a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

[SIGNATURE PAGES FOLLOW]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers and general partners thereunto duly authorized, as of the date first written above.

	
				
	 
	 
	 

	 
	 

	 
	CALPINE CORPORATION

	By:
	/s/ ZAMIR RAUF

	 
	Name: Zamir Rauf
Title:   Executive Vice President and

	Chief Financial Officer

	 
	 
	 

	 
	 

Calpine Corporation Revolving Credit Agreement
Amendment No.2

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers and general partners thereunto duly authorized, as of the date first written above.
	
			
	 
	THE GUARANTORS SET FORTH ON

	 
	ANNEX I & II TO THIS SIGNATURE

	 
	PAGE

	 
	 
	 

	 
	By:
	/s/ ZAMIR RAUF

	 
	 
	Name: Zamir Rauf
Title:   Chief Financial Officer

	
			
	 
	THE GUARANTORS SET FORTH ON

	 
	ANNEX III & IV TO THIS SIGNATURE

	 
	PAGE

	 
	 
	 

	 
	By:
	/s/ HETHER BENJAMIN BROWN

	 
	 
	Name: Hether Benjamin Brown
Title:   Vice President

Calpine Corporation Revolving Credit Agreement
Amendment No.2

ANNEX I

	
	
	Name of Guarantor

	Anacapa Land Company, LLC

	Anderson Springs Energy Company

	Auburndale Peaker Energy Center, LLC

	Aviation Funding Corp.

	Baytown Energy Center, LLC

	CalGen Expansion Company, LLC

	CalGen Project Equipment Finance Company Three, LLC

	Calpine Administrative Services Company, Inc.

	Calpine Auburndale Holdings, LLC

	Calpine Bethlehem, LLC

	Calpine c*Power, Inc.

	Calpine CalGen Holdings, Inc.

	Calpine Calistoga Holdings, LLC

	Calpine Central Texas GP, Inc.

	Calpine Central, Inc.

	Calpine Central-Texas, Inc.

	Calpine Cogeneration Corporation

	Calpine Eastern Corporation

	Calpine Edinburg, Inc.

	Calpine Energy Services GP, LLC

	Calpine Energy Services LP, LLC

	Calpine Energy Services, L.P.

	Calpine Fuels Corporation

	Calpine Generating Company, LLC

	Calpine Geysers Company, L.P.

	Calpine Gilroy 1, Inc.

	Calpine Gilroy 2, Inc.

	Calpine Global Services Company, Inc.

	Calpine Hidalgo Energy Center, L.P.

	Calpine Hidalgo Holdings, Inc.

	 

	 

	
			
	 
	 
	 

	
	
	Name of Guarantor

	Calpine Hidalgo, Inc.

	Calpine Jupiter, LLC

	Calpine Kennedy Operators, Inc.

	Calpine KIA, Inc.

	Calpine King City, Inc.

	Calpine King City, LLC

	Calpine Leasing Inc.

	Calpine Long Island, Inc.

	Calpine Magic Valley Pipeline, Inc.

	Calpine Mid-Atlantic Energy, LLC

	Calpine Mid-Atlantic Generation, LLC

	Calpine Mid-Atlantic Marketing, LLC

	Calpine MVP, Inc.

	Calpine Newark, LLC

	Calpine New Jersey Generation, LLC

	Calpine Northbrook Holdings Corporation

	Calpine Northbrook Investors, LLC

	Calpine Northbrook Project Holdings, LLC

	Calpine Operations Management Company, Inc.

	Calpine Power Company

	Calpine Power Management, LLC

	Calpine Power, Inc.

	Calpine PowerAmerica, LLC

	Calpine PowerAmerica-CA, LLC

	Calpine PowerAmerica-ME, LLC

	Calpine Project Holdings, Inc.

	Calpine Schuylkill, Inc.

	Calpine Solar, LLC

	Calpine Stony Brook Operators, Inc.

	Calpine Stony Brook, Inc.

	Calpine TCCL Holdings, Inc.

	Calpine Texas Pipeline GP, Inc.

	 

	 

	 

	
			
	 
	 
	 

	
	
	Name of Guarantor

	Calpine Texas Pipeline LP, Inc.

	Calpine Texas Pipeline, L.P.

	Calpine University Power, Inc.

	Calpine Vineland Solar, LLC

	CES Marketing IX, LLC

	CES Marketing V, LLC

	CES Marketing X, LLC

	Channel Energy Center, LLC

	Clear Lake Cogeneration Limited Partnership

	Corpus Christi Cogeneration, LLC

	CPN 3rd Turbine, Inc.

	CPN Acadia, Inc.

	CPN Cascade, Inc.

	CPN Clear Lake, Inc.

	CPN Pipeline Company

	CPN Pryor Funding Corporation

	CPN Telephone Flat, Inc.

	Delta Energy Center, LLC

	Freestone Power Generation, LLC

	GEC Bethpage Inc.

	Geysers Power Company, LLC

	Geysers Power I Company

	Hillabee Energy Center, LLC

	Idlewild Fuel Management Corp.

	JMC Bethpage, Inc.

	Los Medanos Energy Center LLC

	Magic Valley Pipeline, L.P.

	Modoc Power, Inc.

	Morgan Energy Center, LLC

	New Development Holdings, LLC

	NTC Five, Inc.

	Pastoria Energy Center, LLC

	 

	 

	 

	
			
	 
	 
	 

	
	
	Name of Guarantor

	Pastoria Energy Facility, L.L.C.

	Pine Bluff Energy, LLC

	RockGen Energy LLC

	South Point Energy Center, LLC
South Point Holdings, LLC
Stony Brook Cogeneration, Inc.

	Stony Brook Fuel Management Corp.

	Sutter Dryers, Inc.

	Texas City Cogeneration, LLC

	Texas Cogeneration Five, Inc.

	Texas Cogeneration One Company

	Thermal Power Company

	Zion Energy LLC

	
			
	 
	 
	 

ANNEX II

	
	
	Name of Guarantor

	Deer Park Energy Center LLC

	Deer Park Holdings, LLC

	Metcalf Energy Center, LLC

	Metcalf Holdings, LLC

	
			
	 
	 
	 

ANNEX III

	
	
	Name of Guarantor

	Calpine Construction Management Company, Inc.

	Calpine Mid-Atlantic Operating, LLC

	Calpine Power Services, Inc.

	Thomassen Turbine Systems America, Inc.

	
			
	 
	 
	 

ANNEX IV

	
	
	Name of Guarantor

	Calpine Operating Services Company, Inc.

	
			
	 
	 
	 

	
			
	 
	 
	 

	 
	GOLDMAN SACHS BANK USA,

	 
	 
	as Administrative Agent

	 
	 
	 

	 
	By:
	/s/ DOUGLAS TANSEY

	 
	 
	Name: Douglas Tansey
Title:   Authorized Signatory

Calpine Corporation Revolving Credit Agreement
Amendment No.2

        

The undersigned Lender hereby irrevocably and unconditionally approves of and consents to the Amendment with respect to all Revolving Commitments held by such Lender and confirms its Revolving Commitments set forth on Exhibit C to the Amendment.

	
			
	 
	Goldman Sachs Bank USA,

	 
	as a Lender

	 
	 

	 
	 
	 

	 
	By:
	/s/ MARK WALTON

	 
	 
	Name: Mark Walton
Title:   Authorized Signatory

Calpine Corporation Revolving Credit Agreement
Amendment No.2

The undersigned Lender hereby irrevocably and unconditionally approves of and consents to the Amendment with respect to all Revolving Commitments held by such Lender and confirms its Revolving Commitments set forth on Exhibit C to the Amendment.

	
			
	 
	Deutsche Bank AG New York Branch,

	 
	as a Lender and as a Fronting Bank

	 
	 

	 
	 
	 

	 
	By:
	/s/ MARCUS M. TARKINGTON

	 
	 
	Name: Marcus M. Tarkington
Title:   Director

	
			
	 
	 
	 

	 
	By:
	/s/ DUSAN LAZAROV

	 
	 
	Name: Dusan Lazarov
Title:   Director

Calpine Corporation Revolving Credit Agreement
Amendment No.2

The undersigned Lender hereby irrevocably and unconditionally approves of and consents to the Amendment with respect to all Revolving Commitments held by such Lender and confirms its Revolving Commitments set forth on Exhibit C to the Amendment.

	
			
	 
	Morgan Stanley Bank, N.A.,

	 
	as a Lender

	 
	 

	 
	 
	 

	 
	By:
	/s/ MICHAEL KING

	 
	 
	Name: Michael King
Title:   Authorized Signatory

Calpine Corporation Revolving Credit Agreement
Amendment No.2

The undersigned Lender hereby irrevocably and unconditionally approves of and consents to the Amendment with respect to all Revolving Commitments held by such Lender and confirms its Revolving Commitments set forth on Exhibit C to the Amendment.

	
			
	 
	Morgan Stanley Senior Funding, Inc.,

	 
	as a Lender

	 
	 

	 
	 
	 

	 
	By:
	/s/ MICHAEL KING

	 
	 
	Name: Michael King
Title:   Vice President

Calpine Corporation Revolving Credit Agreement
Amendment No.2

The undersigned Lender hereby irrevocably and unconditionally approves of and consents to the Amendment with respect to all Revolving Commitments held by such Lender and confirms its Revolving Commitments set forth on Exhibit C to the Amendment.

	
			
	 
	Citibank, N.A.,

	 
	as a Lender

	 
	 

	 
	 
	 

	 
	By:
	/s/ CARL CHO

	 
	 
	Name: Carl Cho
Title:   Vice President

Calpine Corporation Revolving Credit Agreement
Amendment No.2

The undersigned Lender hereby irrevocably and unconditionally approves of and consents to the Amendment with respect to all Revolving Commitments held by such Lender and confirms its Revolving Commitments set forth on Exhibit C to the Amendment.

	
			
	 
	Credit Suisse AG, Cayman Islands Branch,

	 
	as a Lender

	 
	 

	 
	 
	 

	 
	By:
	/s/ MIKHAIL FAYBUSOVICH

	 
	 
	Name: Mikhail Faybusovich
Title:   Authorized Signatory

	
			
	 
	 
	 

	 
	By:
	/s/ WHITNEY GASTON

	 
	 
	Name: Whitney Gaston
Title:   Authorized Signatory

Calpine Corporation Revolving Credit Agreement
Amendment No.2

The undersigned Lender hereby irrevocably and unconditionally approves of and consents to the Amendment with respect to all Revolving Commitments held by such Lender and confirms its Revolving Commitments set forth on Exhibit C to the Amendment.

	
			
	 
	Bank of America, N.A.,

	 
	as a Lender

	 
	 

	 
	 
	 

	 
	By:
	/s/ WILLIAM MERRITT

	 
	 
	Name: William Merritt
Title:   Vice President

Calpine Corporation Revolving Credit Agreement
Amendment No.2

The undersigned Lender hereby irrevocably and unconditionally approves of and consents to the Amendment with respect to all Revolving Commitments held by such Lender and confirms its Revolving Commitments set forth on Exhibit C to the Amendment.

	
			
	 
	MUFG Union bank, N.A.

	 
	(fka Union Bank, N.A.)

	 
	as a Lender

	 
	 

	 
	 
	 

	 
	By:
	/s/ DENNIS G. BLANK

	 
	 
	Name: Dennis G. Blank
Title:   Vice President

Calpine Corporation Revolving Credit Agreement
Amendment No.2

The undersigned Lender hereby irrevocably and unconditionally approves of and consents to the Amendment with respect to all Revolving Commitments held by such Lender and confirms its Revolving Commitments set forth on Exhibit C to the Amendment.

	
			
	 
	Barclays Bank PLC,

	 
	as a Lender

	 
	 

	 
	 
	 

	 
	By:
	/s/ VANESSA KURBATSKIY

	 
	 
	Name: Vanessa Kurbatskiy
Title:   Vice President

Calpine Corporation Revolving Credit Agreement
Amendment No.2

The undersigned Lender hereby irrevocably and unconditionally approves of and consents to the Amendment with respect to all Revolving Commitments held by such Lender and confirms its Revolving Commitments set forth on Exhibit C to the Amendment.

	
			
	 
	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

Calpine Corporation Revolving Credit Agreement
Amendment No.2

The undersigned Lender hereby irrevocably and unconditionally approves of and consents to the Amendment with respect to all Revolving Commitments held by such Lender and confirms its Revolving Commitments set forth on Exhibit C to the Amendment.

	
			
	 
	The Royal Bank of Scotland plc,

	 
	as a Lender

	 
	 

	 
	 
	 

	 
	By:
	/s/ SAMIRA SISKIND

	 
	 
	Name: Samira Siskind
Title:   Director

Calpine Corporation Revolving Credit Agreement
Amendment No.2

The undersigned Lender hereby irrevocably and unconditionally approves of and consents to the Amendment with respect to all Revolving Commitments held by such Lender and confirms its Revolving Commitments set forth on Exhibit C to the Amendment.

	
			
	 
	The Royal Bank of Canada,

	 
	as a Lender

	 
	 

	 
	 
	 

	 
	By:
	/s/ FRANK LAMBRINOS

	 
	 
	Name: Frank Lambrinos
Title:   Authorized Signatory

Calpine Corporation Revolving Credit Agreement
Amendment No.2

The undersigned Lender hereby irrevocably and unconditionally approves of and consents to the Amendment with respect to all Revolving Commitments held by such Lender and confirms its Revolving Commitments set forth on Exhibit C to the Amendment.

	
			
	 
	Credit Agricole Corporate and Investment Bank,

	 
	as a Lender

	 
	 

	 
	 
	 

	 
	By:
	/s/ EVAN S. LEVY

	 
	 
	Name: Evan S. Levy
Title:   Managing Director

	
			
	 
	 
	 

	 
	By:
	/s/ FREDERIC PETIT

	 
	 
	Name: Frederic Petit
Title:   Vice President

Calpine Corporation Revolving Credit Agreement
Amendment No.2

        

EXHIBIT A

Increased Existing Revolving Lender Commitments

	
		
	Affected Revolving Lenders
	Increased Existing Revolving Lender Commitments

	GOLDMAN SACHS BANK USA
	$38,300,000

	DEUTSCHE BANK AG NEW YORK BRANCH
	$38,300,000

	MORGAN STANLEY SENIOR FUNDING, INC.
	$38,300,000

	CITIBANK, N.A.
	$38,300,000

	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH
	$38,300,000

	BANK OF AMERICA, N.A.
	$38,300,000

	MUFG UNION BANK, N.A. (FKA UNION BANK, N.A.)
	$38,300,000

	BARCLAYS BANK PLC
	$38,380,000

	UBS AG, STAMFORD BRANCH
	$38,380,000

	THE ROYAL BANK OF SCOTLAND PLC
	$38,380,000

	ROYAL BANK OF CANADA
	$38,380,000

 
            

	
			
	 
	 
	 

        

EXHIBIT B

New Revolving Lender Commitments

	
		
	New Revolving Lenders
	New Revolving Lender Commitments

	CRÉDIT AGRICOLE CORPORATE & INVESTMENT BANK
	$78,380,000

 
 

	
			
	 
	 
	 

        

EXHIBIT C

Schedule 1.1A
Revolving Commitment Amounts

	
		
	LENDERS
	REVOLVING COMMITMENT AMOUNT

	GOLDMAN SACHS BANK USA
	$158,300,000

	DEUTSCHE BANK AG NEW YORK BRANCH
	$158,300,000

	MORGAN STANLEY BANK, N.A.
	$50,000,000

	MORGAN STANLEY SENIOR FUNDING, INC.
	$108,300,000

	CITIBANK, N.A.
	$158,300,000

	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH
	$158,300,000

	BANK OF AMERICA, N.A.
	$158,300,000

	MUFG UNION BANK, N.A. (FKA UNION BANK, N.A.)
	$158,300,000

	BARCLAYS BANK PLC
	$78,380,000

	UBS AG, STAMFORD BRANCH
	$78,380,000

	THE ROYAL BANK OF SCOTLAND PLC
	$78,380,000

	ROYAL BANK OF CANADA
	$78,380,000

	CRÉDIT AGRICOLE CORPORATE & INVESTMENT BANK
	$78,380,00010 Q 6.30.2014 Exhibit 10.3

Exhibit 10.3

BORGWARNER INC.
AMENDED AND RESTATED 2004 STOCK INCENTIVE PLAN
 
Stock Units Award Agreement – Non-U.S. Employees

THIS Award Agreement (the “Agreement”) dated as of __________, 20__, by and between BORGWARNER INC., a Delaware corporation (the “Company”) and ______________________ (the “Employee”), is entered into as follows:  

WITNESSETH:

WHEREAS, the Company has established the BorgWarner Inc. Amended and Restated 2004 Stock Incentive Plan (the “Plan”), a copy of which is attached hereto or which has been previously provided to the Employee;

WHEREAS, the Compensation Committee of the Board of Directors (the “Compensation Committee”) of the Company has determined that the Employee be granted Stock Units pursuant to the terms of the Plan and the terms of this Agreement; 
    
NOW THEREFORE, in consideration of the foregoing and the mutual covenants hereinafter set forth:     

		
	1.
	Award of Stock Units.  The Company hereby awards to Employee on this date, [####] Stock Units.  Each Stock Unit awarded hereunder represents a contingent right to receive one share of the Company’s common stock, par value $.01 (“Stock”) upon satisfaction of the conditions for vesting as provided in Paragraph 4 of this Agreement and subject further to the terms of the Plan and the additional terms and conditions of this Agreement (the “Award”).  For purposes of this Agreement, “Employer” shall mean the subsidiary or Affiliate that employs the Employee.

		
	2.
	Stock Units.  The Company shall credit the Employee’s Stock Units to a Stock Units account established and maintained for the Employee on the books of the Company payable in shares of Stock or cash.  The account shall constitute the record of the Stock Units awarded to Employee under this Agreement, is solely for accounting purposes, and shall not require a segregation of any Company assets.  
 

		
	3.
	Dividend Equivalents.  Whenever the Company pays any cash or other dividend or makes any other distribution in respect of the Stock, the Employee’s Stock Units account shall be credited with an additional number of Stock Units (including fractions thereof) determined by multiplying (i) the number of Stock Units credited to the Employee on the dividend record date by (ii) the dividend paid on each share of Stock, and dividing the result of such multiplication by (iii) the Fair Market Value of a share of Stock on the dividend payment date.  Credits shall be made effective as of the date of the dividend or other distribution in respect of the Stock.  Dividend equivalents credited to the Employee’s account shall be subject to the same restrictions as the Stock Units in respect of which the dividends or 

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other distribution were credited, including, without limitation, the Award’s vesting conditions and distribution provisions.
           
		
	4.
	Vesting of Stock Units.  Subject to the terms and conditions of this Agreement and to the provisions of the Plan, the Stock Units shall vest in accordance with the following schedule: 

Date                    Vested Percentage

______________, 20__        50% of the Awarded Stock Units
[2013 Text did not include Stock]

______________, 20__        100% of the Awarded Stock Units
[2013 Text did not include Stock]

provided however, that: 

		
	a.
	In the event of the Employee’s Termination of Employment for Cause, the Employee shall forfeit all of the Stock Units awarded hereby and all rights to receive Stock in payment of such Stock Units;

		
	b.
	In the event of the Employee’s voluntary Termination of Employment, the Employee shall forfeit all rights to Stock Units unvested as of the date of Employee’s Termination of Employment and all rights to receive Stock in payment of such forfeited Stock Units;

		
	c.
	In the event of a Change in Control, any remaining restrictions applicable to any then unvested Stock Units shall lapse, and such Stock Units shall become free of all restrictions and become fully vested; and 

		
	d.
	In the event of the Employee’s death or disability, or in the event of the Employee’s involuntary Termination of Employment without Cause or Retirement prior to the vesting of the Stock Units, the Compensation Committee shall have the discretion to waive, in whole or in part, any or all remaining payment limitations with respect to the Stock Units awarded under this Agreement.

For purposes of this Agreement, any Termination of Employment shall be effective as of the earlier of (1) the date that the Employee tenders notice of resignation of employment, or (2) the date that the Employee ceases to actively provide services. In connection with the foregoing, the applicable termination date shall not be extended by any notice period mandated under local law (e.g., “garden leave” or similar period pursuant to local law), and the Company shall have the exclusive discretion to determine when the Employee is no longer actively providing service for purposes of the Stock Units.  [2013 Text did not include the preceding paragraph]

		
	5.
	EU Age Discrimination.    For purposes of this Agreement, if the Employee is a local national of and employed in a country that is a member of the European Union, the grant of the Stock Units and the terms and conditions governing the Award are intended to comply with the age discrimination provisions of the EU Equal Treatment Framework Directive, as implemented into local law (the “Age Discrimination Rules”).  To the extent a court or tribunal 

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of competent jurisdiction determines that any provision of the Award is invalid or unenforceable, in whole or in part, under the Age Discrimination Rules, the Company, in its sole discretion, shall have the power and authority to revise or strike such provision to the minimum extent necessary to make it valid and enforceable to the full extent permitted under local law.

		
	6.
	Distribution of Stock.   The Company shall deliver Stock to the Employee in settlement of the Stock Units awarded by this Agreement equal to the number of the Employee's vested Stock Units (including any additional Stock Units acquired as a result of dividend equivalents that have vested).  Payment shall be made to the Employee as soon as practicable on or after the specified vesting date, but in no event no later than December 31 of the year in which the vesting period ends.  Notwithstanding the foregoing, the Company may, in its sole discretion, settle the Stock Units in the form of: (i) a cash payment to the extent settlement in shares of Stock (1) is prohibited under local law, (2) would require the Employee or the Company to obtain the approval of any governmental and/or regulatory body in the Employee’s country of residence (and/or country of employment, if different) or (3) is administratively burdensome; or (ii) shares of Stock, but require the Employee to immediately sell such shares (in which case, this Agreement shall give the Company the authority to issues sales instructions on behalf of the Employee).

		
	7.
	Repatriation; Compliance with Laws.  The Employee agrees, as a condition of the grant of the Stock Units, to repatriate all payments attributable to the Stock Units and/or cash acquired under the Plan (including, but not limited to, dividends, dividend equivalents, and any proceeds derived from the sale of the Stock acquired pursuant to the Stock Units) in accordance with all foreign exchange rules and regulations applicable to the Employee.  In addition, the Employee also agrees to take any and all actions, and consents to any and all actions taken by the Company and its subsidiaries and Affiliates, as may be required to allow the Company and its subsidiaries and Affiliates to comply with all applicable laws, rules and regulations.  Finally, the Employee agrees to take any and all actions as may be required to comply with the Employee’s personal legal and tax obligations under all applicable laws, rules and regulations.                 

		
	8.
	Nontransferability.  The Stock Units awarded under this Agreement, and any rights and privileges pertaining thereto, are not subject to anticipation, alienation, sale, transfer, assignment, pledge, or encumbrance by the Employee or by the Employee's beneficiary, in any manner, by operation of law or otherwise, and shall not be subject to execution, attachment or similar process.

		
	9.
	No Rights as a Stockholder.  Prior to the actual delivery of Stock to the Employee in settlement of the Stock Units awarded and vested hereunder (if any), the Employee shall have no rights as a stockholder with respect to the Stock Units or any underlying Stock.    

		
	10.
	No Right to Continued Employment.  Nothing contained in the Plan or this Agreement shall confer upon the Employee any right to continued employment nor shall it interfere in any way with the right of the Employer to terminate the employment of the Employee at any time. 

		
	11.
	Discretionary Nature of Plan; No Vested Rights.  The Employee acknowledges and agrees that the Plan is discretionary in nature and limited in duration, and may be amended, 

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cancelled, or terminated by the Company, in its sole discretion, at any time.  The grant of Stock Units under the Plan is a one-time benefit and does not create any contractual or other right to receive an award or benefits in lieu of Stock Units in the future.  Future awards, if any, will be at the sole discretion of the Company, including, but not limited to, the form and timing of an award, the number of shares of Stock subject to the award, and the vesting provisions.

		
	12.
	Termination Indemnities.  The value of the Stock Units is an extraordinary item of compensation outside the scope of the Employee’s employment contract, if any.  As such, the Stock Units are not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension, or retirement benefits or similar payments.  

		
	13.
	Private Placement.  The grant of the Stock Units is not intended to be a public offering of securities in the Employee’s country of residence (or country of employment, if different) but instead is intended to be a private placement.  As a private placement, the Company has not submitted any registration statement, prospectus or other filings with the local securities authorities (unless otherwise required under local law), and the grant of the Stock Units is not subject to the supervision of the local securities authorities.   

		
	14.
	Consent to Collection, Processing and Transfer of Personal Data.  Pursuant to applicable personal data protection laws, the Company and the Employer hereby notify the Employee of the following in relation to the Employee’s personal data and the collection, use [2013 Text did not include use], processing and transfer of such data in relation to the Company’s grant of this Award and the Employee’s participation in the Plan.  The collection, use [2013 Text did not include use], processing and transfer of the Employee’s personal data is necessary for the Company’s administration of the Plan and the Employee’s participation in the Plan.  The Employee’s denial and/or objection to the collection, use [2013 Text did not include use], processing and transfer of personal data may affect the Employee’s participation in the Plan.  As such, the Employee voluntarily acknowledges and consents (where required under applicable law) to the collection, use, processing and transfer of personal data as described herein.  

 
The Company and the Employer hold certain personal information about the Employee, including name, home address and telephone number, date of birth, social security number or other employee identification number, salary, nationality, job title, any shares of Stock or directorships held in the Company, details of all Stock Units, or any other entitlement to shares of Stock awarded, canceled, purchased, vested, unvested or outstanding in the Employee’s  favor, for the purpose of managing and administering the Plan (“Data”).   The Data may be provided by the Employee or collected, where lawful, from third parties, and the Company and the Employer each will process the Data for the exclusive purpose of implementing, administering and managing the Employee’s participation in the Plan. The Data processing will take place through electronic and non-electronic means according to logic and procedures strictly correlated to the purposes for which the Data is collected and with confidentiality and security provisions as set forth by applicable laws and regulations in the Employee’s country of residence (and country of employment, if different).  Data processing operations will be performed minimizing the use of personal and identification data when such operations are unnecessary for the processing purposes sought. Data will 

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be accessible within the Company’s organization only by those persons requiring access for purposes of the implementation, administration and operation of the Plan and for the Employee’s participation in the Plan.

 
The Company and the Employer each will transfer Data internally as necessary for the purpose of implementation, administration and management of the Employee’s participation in the Plan, and the Company and the Employer each may further transfer Data to any third parties assisting the Company in the implementation, administration and management of the Plan.  These recipients may be located in the European Economic Area, or elsewhere throughout the world, such as the United States.  The Employee hereby authorizes (where required under applicable law) them to receive, possess, use, retain and transfer the Data, in electronic or other form, for purposes of implementing, administering and managing the Employee’s participation in the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan and/or the subsequent holding of shares of Stock on the Employee’s behalf by a broker or other third party with whom the Employee may elect to deposit any shares of Stock acquired pursuant to the Plan.  

 
The Employee may, at any time, exercise his or her rights provided under applicable personal data protection laws, which may include the right to (a) obtain confirmation as to the existence of the Data, (b) verify the content, origin and accuracy of the Data, (c) request the integration, update, amendment, deletion, or blockage (for breach of applicable laws) of the Data, and (d) to oppose, for legal reasons, the collection, processing or transfer of the Data which is not necessary or required for the implementation, administration and/or operation of the Plan and the Employee’s participation in the Plan.  The Employee may seek to exercise these rights by contacting the Employer's local HR manager or the Company’s Human Resources Department.

		
	15.
	Terms of the Plan Shall Govern.  The Award is made pursuant to, and is subject to the Plan, including, without limitation, its provisions governing a Change in Control and Cancellation and Rescission of Awards.  In the case of any conflict between the Plan and this Agreement, the terms of the Plan shall control.  Unless otherwise indicated, all capitalized terms contained in this Agreement shall have the meaning assigned to them in the Plan.

		
	16.
	Tax and Social Insurance Contributions Withholding.  Regardless of any action the Company and/or the Employer take with respect to any or all income tax (including U.S. federal, state and local taxes and/or non-U.S. taxes), social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), the Employee acknowledges that the ultimate liability for all Tax-Related Items legally due by the Employee is and remains the Employee’s responsibility, and the Company and the Employer: (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Stock Units, including the grant of the Stock Units, the vesting of the Stock Units, the subsequent sale of any Stock acquired pursuant to the Stock Units and the receipt of any dividends or dividend equivalents; and (ii) do not commit to structure the terms of the grant or any aspect of the Stock Units to reduce or eliminate the Employee’s liability for Tax-Related Items.

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Prior to the delivery of the Stock upon the vesting of the Stock Units, if any taxing jurisdiction requires withholding of Tax-Related Items, the Company may withhold a sufficient number of whole shares of Stock otherwise issuable upon the vesting of the Stock Units that have an aggregate Fair Market Value (as defined under the Plan) sufficient to pay the minimum Tax-Related Items required to be withheld with respect to the shares.  The cash equivalent of the shares withheld will be used to settle the obligation to withhold the Tax-Related Items (determined by reference to the closing price of the Stock on the New York Stock Exchange on the applicable vesting date).  No fractional shares of Stock will be withheld or issued pursuant to the grant of the Stock Units and the issuance of Stock hereunder.  Alternatively, the Company and/or the Employer may, in its discretion, withhold any amount necessary to pay the Tax-Related Items from the Employee’s salary/wages or other amounts payable to the Employee, with no withholding in shares of Stock.  

In the event the withholding requirements are not satisfied through the withholding of shares of Stock or through the withholding from the Employee’s salary/wages or other amounts payable to the Employee, no shares of Stock will be issued upon vesting of the Stock Units unless and until satisfactory arrangements (as determined by the Committee) have been made by the Employee with respect to the payment of any Tax-Related Items which the Company and/or the Employer determine, in its sole discretion, must be withheld or collected with respect to such Stock Units. If the Employee is subject to taxation in more than one jurisdiction, the Employee acknowledges that the Company, the Employer or another subsidiary or Affiliate may be required to withhold or account for Tax-Related Items in more than one jurisdiction.  [2013 Text did not include the preceding sentence] By accepting this grant of Stock Units, the Employee expressly consents to the withholding of shares of Stock and/or the withholding of amounts from the Employee's salary/wages or other amounts payable to the Employee as provided for hereunder.  All other Tax-Related Items related to the Stock Units and any Stock delivered in payment thereof are the Employee’s sole responsibility.

		
	17.
	Electronic Delivery.  The Company may, in its sole discretion, decide to deliver any documents related to the Stock Units or other awards granted to the Employee under the Plan by electronic means.  The Employee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

		
	18.
	English Language.  The Employee acknowledges and agrees that it is the Employee’s express intent that this Agreement, the Plan and all other documents, notices and legal proceedings entered into, given or instituted pursuant to the Stock Units, be drawn up in English.  If the Employee has received this Agreement, the Plan or any other documents related to the Stock Units translated into a language other than English, and if the meaning of the translated version is different than the English version, the English version shall control.  

		
	19.
	Addendum.  Notwithstanding any provisions herein to the contrary, the Stock Units shall be subject to any special terms and conditions for the Employee’s country of residence (and country of employment, if different), as may be set forth in an addendum to this Agreement (the “Addendum”).  Further, if the Employee transfers the Employee’s residence 

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and/or employment to another country reflected in an Addendum, the special terms and conditions for such country will apply to the Employee to the extent the Company determines, in its sole discretion, that the application of such terms and conditions is necessary or advisable in order to comply with local laws, rules and/or regulations [2013 Text did not include rules and/or regulations] or to facilitate the operation and administration of the Stock Units and the Plan (or the Company may establish alternative terms and conditions as may be necessary or advisable to accommodate the Employee’s transfer).  In all circumstances, any applicable Addendum shall constitute part of this Agreement.

		
	20.
	Additional Requirements.  The Company reserves the right to impose other requirements on the Stock Units, any shares of Stock acquired pursuant to the Stock Units, and the Employee’s participation in the Plan, to the extent the Company determines, in its sole discretion, that such other requirements are necessary or advisable in order to comply with local laws, rules and/or regulations [2013 Text did not include rules and/or regulations] or to facilitate the operation and administration of the Stock Units and the Plan.  Such requirements may include (but are not limited to) requiring the Employee to sign any agreements or undertakings that may be necessary to accomplish the foregoing.

		
	21.
	Governing Law.  The Award made and actions taken under the Plan and this Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without taking into account its conflict of laws provisions.    

		
	22.
	Binding Effect.  Subject to the limitations stated above, this Agreement shall be binding upon and inure to the benefit of the parties’ respective heirs, legal representatives successors and assigns.

		
	23.
	Changes in Capital or Corporate Structure.  In the event of any merger, reorganization, consolidation, recapitalization, stock dividend, stock split, extraordinary distribution with respect to the Stock or other change in corporate structure affecting the Stock, the number of Stock Units awarded under this Agreement shall be adjusted pursuant to Section 4(e) of the Plan.   

		
	24.
	Entire Agreement.  This Agreement is the entire agreement between the parties hereto, and all prior oral and written representations are merged into this Agreement.  The headings in this Agreement are inserted for convenience and identification only and are not intended to describe, interpret, define or limit the scope, extent, or intent of this Agreement or any provision hereof.  

		
	25.
	Notices.  Any notice or other communication required or permitted under this Agreement must be in writing and must be delivered personally, sent by certified, registered or express mail, or sent by overnight courier, at the sender's expense. Notice shall be deemed given when delivered personally or, if mailed, three days after the date of deposit in the United States mail or, if sent by overnight courier, on the regular business day following the date sent.  Notice to the Company should be sent to Attention: Vice President, Human Resources, BorgWarner World Headquarters, 3850 Hamlin Road, Auburn Hills, MI, USA 48326.  The Company may change the person and/or address to whom the Employee must give notice under this paragraph by giving the Employee written notice of such change, in accordance with the procedures described above.  Notices to or with respect to the Employee shall be directed to the Employee, or to the Employee's executors, personal representatives or 

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distributees, if the Employee is deceased, or the assignees of the Employee, at the Employee's last home address on the records of the Company.

		
	26.
	Amendment of the Agreement.  The Company and the Employee may amend this Agreement only by a written instrument signed by both parties.  

		
	27.
	Counterparts.  This Agreement may be executed in one or more counterparts, all of which together shall constitute but one agreement.

IN WITNESS WHEREOF, BORGWARNER INC. and the Employee have executed this Agreement to be effective as of the date first written above.

BORGWARNER INC.

By: 

Title:    Chief Executive Officer

I acknowledge receipt of a copy of the Plan (either as an attachment hereto or that has been previously received by me) and that I have carefully read this Agreement, the Addendum [2013 Text did not include the Addendum] and the Plan.  I agree to be bound by all of the provisions set forth in this Agreement, the Addendum [2013 Text did not include the Addendum] and the Plan.  

            
Date        EMPLOYEE

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