Document:

exv10w3

EXHIBIT 10.3

December 21, 2009

BorgWarner Inc.

3850 Hamlin Road

Auburn Hills, Michigan 48326

Attention: General Counsel

Attention: John J. Gasparovic, General Counsel and Secretary

Ladies and Gentlemen:

     Reference is hereby made to that certain Credit Agreement dated as of July 22, 2004 (as
amended by (a) that certain Amendment No. 1 and Consent Agreement dated as of April 30, 2009, (b)
that certain Amendment No. 2 dated as of August 11, 2009, and (c) that certain Amendment No. 3 and
Consent dated as of October 23, 2009 and as further amended, restated, supplemented or otherwise
modified, the “Credit Agreement”), among BorgWarner Inc., a Delaware corporation (the
“Borrower”), the several banks and other financial institutions from time to time parties
hereto (the “Lenders”), and Bank of America, N.A., as Administrative Agent (in such
capacity, the “Administrative Agent”), Issuing Bank and Swingline Lender. Except as
otherwise specified in this agreement (this “Letter Agreement”), all capitalized undefined
terms used herein shall have the meanings assigned thereto in the Credit Agreement.

     Reference is also made to (a) that certain Receivables Sale Agreement, dated as of December
21, 2009 (the “Receivables Sale Agreement”), by and among (i) BorgWarner Emissions Systems
Inc., a Delaware corporation, BorgWarner Morse TEC Inc., a Delaware corporation, BorgWarner
Powdered Metals Inc., a Delaware corporation, BorgWarner Thermal Systems Inc., a Delaware
corporation, BorgWarner TorqTransfer Systems Inc., a Delaware corporation, BorgWarner Transmission
Systems Inc., a Delaware corporation, BorgWarner Turbo Systems Inc., a Delaware corporation,
collectively as originators and (ii) BWA Receivables Corporation, a Delaware corporation, as buyer
and (b) that certain Receivables Purchase Agreement dated as of December 21, 2009 (the
“Receivables Purchase Agreement” and together with the Receivables Sale Agreement, the
“2009 Receivables Documents”) among BWA Receivables Corporation, a Delaware corporation, as
seller, BorgWarner Inc., a Delaware corporation, as initial collection agent, Wachovia Bank,
National Association, as purchaser and Wachovia Bank, National Association, as administrative
agent, copies of which are attached hereto as Exhibit A.

     Notwithstanding anything in the Credit Agreement or any other Loan Document to the contrary,
each of the parties hereto agrees that Section 6.6 of the Credit Agreement is hereby
modified to permit the Disposition of accounts receivable and assets supporting the obligations
under such transferred accounts receivable in each case in connection with any Receivables Facility
that is permitted under the Credit Agreement. The parties hereto further agree that Consolidated
Total Debt shall not include any Receivables Facility that is permitted under the Credit Agreement
irrespective of whether such Receivables Facility is treated as indebtedness in accordance with
GAAP.

     Effective upon the execution hereof by the Required Lenders, the Administrative Agent and each
Loan Party and the Lenders’ receipt of the final 2009 Receivables Documents and the completion of
the

 

 

Disposition of the accounts receivables subject to the Receivables Facility evidenced by the
2009 Receivables Documents, the Administrative Agent hereby unconditionally and irrevocably
releases and discharges:

     (a) each Lien granted under the Security Agreement that is applicable to the accounts
receivable sold or transferred to BWA Receivables Corporation by BorgWarner Emissions
Systems Inc., BorgWarner Morse TEC Inc., BorgWarner Powdered Metals Inc., BorgWarner Thermal
Systems Inc., BorgWarner TorqTransfer Systems Inc., BorgWarner Transmission Systems Inc.,
and BorgWarner Turbo Systems Inc. pursuant to the Receivables Sale Agreement (and such
assets supporting the obligations under such transferred accounts receivable as are
reasonably required to be subject to such Lien and constitute “Purchased Assets” (as defined
in the Receivables Sale Agreement)), but only to the extent such accounts
receivable and supporting obligations are actually sold pursuant to and
in accordance with the Receivables Purchase Agreement, it being understood and agreed that
this release is a partial release and shall not effect the Administrative Agent’s Liens on
any other Collateral, including, without limitation, (i) any machinery or equipment of the
Borrower or any Guarantor or (ii) to any inventory or goods of the Borrower or any Guarantor
that has not been sold or transferred and given rise to an account receivable transferred by
BWA Receivables Corporation pursuant to the Receivables Purchase Agreement); and

     (b) BWA Receivables Corporation from its obligations under the Guaranty Agreement and
the Security Agreement.

     Each of the Loan Parties hereto and BWA Receivables Corporation represents and warrants that
(a) BWA Receivables Corporation (i) does not and shall not own or hold any assets other than the
Purchased Assets (as defined in the Receivables Sale Agreement), or conduct any operations, other
than those reasonably necessary to comply with the terms of the 2009 Receivables Documents, and
(ii) does not currently have, and will not incur, assume or suffer to exist, any Indebtedness other
than Indebtedness under the terms of the Receivables Facility evidenced by the 2009 Receivables
Documents, with aggregate outstandings at no time exceeding the maximum amounts set forth in the
definition of Receivables Facility in the Credit Agreement and (b) the release of BWA Receivables
Corporation from the Guaranty as contemplated herein does not constitute a release of all or
substantially all of the value of the Guaranty.

     Pursuant to the terms hereof and for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the parties hereto, the Administrative Agent and
each of the Lenders party hereto each hereby agrees to the modifications set forth in this Letter
Agreement.

     Except as expressly provided herein, the Credit Agreement and the other Loan Documents (and
each of the guaranties set forth therein and the security interests granted therein) shall remain
unmodified and in full force and effect. This Letter Agreement shall not be deemed (a) to be a
waiver of, or consent to, a modification or amendment of, any other term or condition of the Credit
Agreement or any other Loan Document, (b) to prejudice any other right or rights which the
Administrative Agent or the Lenders may now have or may have in the future under or in connection
with the Credit Agreement or the other Loan Documents or any of the instruments or agreements
referred to therein, as the same may be amended, restated, supplemented or otherwise modified from
time to time, (c) to be a commitment or any
other undertaking or expression of any willingness to engage in any further discussion with
the Borrower or any other Person with respect to any waiver, amendment, modification or any other
change to the Credit Agreement or the Loan Documents or any rights or remedies arising in favor of
the Lenders or the

 

 

Administrative Agent, or any of them, under or with respect to any such
documents or (d) to be a waiver of, or consent to or a modification or amendment of, any other term
or condition of any other agreement by and among the Loan Parties or any Loan Party, on the one
hand, and the Administrative Agent or any other Lender, on the other hand. References in the
Credit Agreement to “this Agreement” (and indirect references such as “hereunder”, “hereby”,
“herein”, and “hereof”) and in any Loan Document to the Credit Agreement shall be deemed to be
references to the Credit Agreement as modified hereby.

     This Letter Agreement shall be effective upon the execution hereof by the Required Lenders,
the Administrative Agent and each Loan Party.

     By its execution hereof, each Loan Party, on a joint and several basis, hereby represents and
warrants that after giving effect to this Letter Agreement, (a) each of the representations and
warranties set forth in the Credit Agreement and the other Loan Documents is true and correct as of
the date hereof as if fully set forth herein, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they shall be true and correct as
of such earlier date, (b) no Default or Event of Default has occurred and is continuing as of the
date hereof or would result after giving effect to the transactions contemplated hereunder, (c)
that such Person has all requisite power and authority and has taken all necessary corporate or
other action to authorize the execution, delivery and performance of this Letter Agreement and each
other document executed in connection herewith to which it is a party in accordance with their
respective terms, and (d) this Letter Agreement and each other document executed in connection
herewith has been duly executed and delivered by the duly authorized officers of each Loan Party,
and each such document constitutes the legal, valid and binding obligation of such Loan Party,
enforceable in accordance with its terms.

     This Letter Agreement may be executed in counterparts (and by different parties hereto in
different counterparts), each of which shall constitute an original, but all of which when taken
together shall constitute a single contract. Delivery of an executed counterpart of a signature
page of this Letter Agreement by telecopy shall be effective as delivery of a manually executed
counterpart of this Letter Agreement.

     THIS LETTER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK WITHOUT REGARD TO ITS CONFLICTS OF LAW PRINCIPLES.

[Signature Pages Follow]

 

 

     Except as expressly provided herein, the Credit Agreement and the other Loan Documents shall
remain unmodified and in full force and effect.

	 	 	 	 	 
	 	Sincerely,

BANK OF AMERICA, N.A., as

Administrative Agent

 	 
	 
	 	By:  	 	 
	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Pages Continue]

BorgWarner Inc.

Letter Agreement

Signature Page

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., 
as a
Lender, Issuing Bank and Swingline Lender

 	 
	 
	 	By:  	 	 
	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CITIBANK, N.A., as a Lender

 	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	DEUTSCHE BANK AG NEW YORK
BRANCH,
 as a Lender
 	 
	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MORGAN STANLEY BANK, N.A.,
as a Lender
 	 
	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	KEYBANK NATIONAL ASSOCIATION,

as a Lender
 	 
	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE BANK OF TOKYO-MITSUBISHI UFJ,
LTD., 
as a Lender
 	 
	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Pages Continue]

BorgWarner Inc.

Letter Agreement

Signature Page

 

 

	 	 	 	 	 
	 	THE NORTHERN TRUST COMPANY, as a Lender

 	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	INTESA SANPAOLO S.P.A., as a Lender

 	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MERRILL LYNCH BANK USA, as a Lender

 	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Pages Continue]

BorgWarner Inc.

Letter Agreement

Signature Page

 

 

	 	 	 	 	 
	Acknowledged and accepted by:	 	 

	 	BORGWARNER INC., as
Borrower

 	 
	 
	 	By:  	 	 
	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BORGWARNER DIVERSIFIED
TRANSMISSION 
PRODUCTS INC., as Guarantor
 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BORGWARNER DIVERSIFIED TRANSMISSION 
PRODUCTS SERVICES
INC.,
 as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BORGWARNER EMISSIONS SYSTEMS
HOLDING INC.,
 as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BORGWARNER EMISSIONS SYSTEMS
INC.,
 as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BORGWARNER EMISSIONS SYSTEMS OF
MICHIGAN INC.,
 as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Pages Continue]

BorgWarner Inc.

Letter Agreement

Signature Page

 

 

	 	 	 	 	 
	 	BORGWARNER EUROPE INC., as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BORGWARNER HOLDING INC., as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BORGWARNER INVESTMENT HOLDING INC., as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BORGWARNER JAPAN INC., as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BORGWARNER MORSE TEC INC., as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BORGWARNER NW INC., as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BORGWARNER POWDERED METALS INC., as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Pages Continue]

BorgWarner Inc.

Letter Agreement

Signature Page

 

 

	 	 	 	 	 
	 	BORGWARNER SOUTH ASIA INC.,

as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BORGWARNER THERMAL SYSTEMS
INC., 
as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BORGWARNER THERMAL SYSTEMS OF MICHIGAN INC., as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BORGWARNER TORQTRANSFER SYSTEMS INC., as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BORGWARNER TRANSMISSION SYSTEMS INC., as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BORGWARNER TURBO SYSTEMS
INC., 
as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BRONSON SPECIALTIES INC., as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BWA TURBO SYSTEMS HOLDING CORPORATION, as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	KUHLMAN CORPORATION, as Guarantor

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BWA RECEIVABLES CORPORATION

 	 
	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 
BorgWarner Inc.

Letter Agreement

Signature Pageexv4w1

Exhibit 4.1

AMENDMENT TO RIGHTS AGREEMENT

BY AND BETWEEN

AMICAS, INC.

AND

STOCKTRANS, INC., AS RIGHTS AGENT

     THIS AMENDMENT TO RIGHTS AGREEMENT (this “Amendment”) is made as of this 24th day of December,
2009 by and between AMICAS, Inc., a Delaware corporation (the “Corporation”), and StockTrans, Inc.,
as rights agent (the “Rights Agent”). Capitalized terms used but not defined herein shall have the
meanings given to such terms in the Merger Agreement (as defined below).

     WHEREAS, the Corporation is entering into an Agreement and Plan of Merger (as the same may be
amended from time to time, the “Merger Agreement”) by and among the Corporation, Project Alta
Holdings Corp., a Delaware corporation (“Parent”), and Project Alta Merger Corp., a Delaware
corporation and wholly owned subsidiary of Parent (“Merger Sub”), providing for transactions
(collectively, the “Merger”) pursuant to which, among other things, the Corporation will become a
wholly owned subsidiary of Parent, and the former stockholders of the Corporation will receive the
Merger Consideration.

     WHEREAS, the Corporation and the Rights Agent are parties to a Rights Agreement dated as of
December 5, 2002 (the “Rights Agreement”).

     WHEREAS, the Board of Directors of the Corporation and a majority of the members of the
Independent Director Committee (as defined in the Rights Agreement) have

 

 

deemed it advisable and in the best interests of the Corporation and its stockholder to amend
the Rights Agreement as set forth herein.

     WHEREAS, the parties desire to amend the Rights Agreement in connection with the execution and
delivery of the Merger Agreement as set forth herein.

     NOW, THEREFORE, in consideration of the foregoing and the mutual agreements herein set forth,
the parties hereby agree as follows:

     1. The definition of “Acquiring Person” set forth in Section 1 of the Rights Agreement is
hereby amended by adding the following sentence to the end of that definition:

Notwithstanding the foregoing, no Person shall be or become an
Acquiring Person by reason of (i) the announcement, disclosure,
approval, execution, delivery or performance of (x) the Agreement
and Plan of Merger dated as of December 24, 2009 (the “Merger
Agreement”) by and among the Corporation, Project Alta Holdings
Corp., a Delaware corporation (“Parent”), and Project Alta Merger
Corp., a Delaware corporation and wholly owned subsidiary of Parent
(“Merger Sub”), or any amendment thereto, (y) the Voting Agreement
dated as of December 24, 2009 between Parent and certain
stockholders of the Corporation (the “Voting Agreement”) or any
amendment thereto, or (ii) the consummation of any transaction
contemplated by the Merger Agreement of the Voting Agreement.

     2. The definition of “Stock Acquisition Date” included in Section 1 of the Rights Agreement
shall be amended by adding the following sentence to the end of such definition:

Notwithstanding any other provision of this Rights Agreement, a
Stock Acquisition Date shall not be deemed to have occurred solely
by reason of (i) the announcement, disclosure, approval, execution,
delivery or performance of (x) the Merger Agreement or any amendment
thereto, or (y) the Voting Agreement or any amendment thereto, or
(ii) the consummation of any transaction contemplated by the Merger
Agreement of the Voting Agreement.

     3. Section 3(b) of the Rights Agreement shall be amended by adding the following sentence to
the end thereof:

- 2 -

 

Notwithstanding any other provision of this Rights Agreement, no
Distribution Date shall be deemed to have occurred solely by reason
of (i) the announcement, disclosure, approval, execution, delivery
or performance of (x) the Merger Agreement or any amendment thereto,
or (y) the Voting Agreement or any amendment thereto, or (ii) the
consummation of any transaction contemplated by the Merger Agreement
of the Voting Agreement.

     4. The second sentence of Section 7(a) of the Rights Agreement shall be amended to read in its
entirety as follows:

Except as otherwise provided herein, the Rights may be exercised, in
whole or in part, at any time commencing with the Distribution Date
upon surrender of the Rights Certificate, with the form of election
to purchase and certificate on the reverse side thereof duly
executed (with signatures duly guaranteed), to the Rights Agent at
the principal office of the Rights Agent located at 44 West
Lancaster Avenue, Ardmore, Pennsylvania, 19003, together with
payment of the Exercise Price for each Right exercised, subject to
adjustment as hereinafter provided, at or prior to the earliest of
(i) immediately prior to the Effective Time (as that term is defined
in the Merger Agreement), (ii) the Close of Business on December 5,
2012 (or if the Distribution Date shall have occurred before
December 5, 2012 (or if the Distribution Date shall have occurred
before December 5, 2012, at the Close of Business on the
90th day following the Distribution Date) or (iii) the
Close of Business on the date on which the Rights are redeemed as
provided in Section 23 hereof (such earlier date being herein
referred to as the “Expiration Date”).

     5. The first paragraph of Section 13(c) shall be amended by adding the words “(other than any
such transaction contemplated by the Merger Agreement or the Voting Agreement)” after the first
reference in the first paragraph of Section 13(c) to “any consolidation, merger or sale or transfer
of assets or earning power referred to in Section 13(a).”

     6. The Rights Agreement, as amended by this Amendment, shall remain in full force and effect
in accordance with its terms.

     7. This Amendment shall be deemed to be a contract made under the laws of the State of
Delaware and for all purposes shall be governed by and construed in accordance with

- 3 -

 

the laws of such State applicable to contracts to be made and performed entirely within such
State. This Amendment may be executed in any number of counterparts, each of such counterparts
shall for all purposes be deemed to be an original, and all such counterparts shall together
constitute but one and the same instrument. If any term, provision, covenant or restriction of
this Amendment is held by a court of competent jurisdiction or other authority to be invalid, void
or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this
Amendment shall remain in full force and effect and shall in no way be affected, impaired or
invalidated.

- 4 -

 

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

	 	 	 	 	 
	 	

AMICAS, INC.

 	 
	 	By:  	/s/ Craig Newfield
 	 
	 	 	Name:  	Craig Newfield 	 
	 	 	Title:  	General Counsel 	 
	 
	 	STOCKTRANS, INC., Rights Agent

 	 
	 	By:  	/s/ Robert J. Winterle
 	 
	 	 	Name:  	Robert J. Winterle 	 
	 	 	Title:  	Vice President, Operations 	 
	 

- 5 -

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