Document:

exv10w2

 

Exhibit 10.2

EXECUTION COPY

AMENDMENT NO. 2

TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of August 16, 2006

          THIS AMENDMENT NO. 2 TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (“Amendment”) is
made as of the “Amendment Effective Date” (as defined below) by and among GARDNER DENVER, INC. (the
“Borrower”), GD First (UK) Limited, a limited company organized under the laws of England
and Wales (the “UK Borrower”), and Gardner Denver Holdings GmbH & Co. KG, a limited
partnership organized under the laws of Germany (the “German Borrower,” and together with
the Borrower and the UK Borrower, the “Borrowers”), the financial institutions listed on
the signature pages hereof as lenders (the “Lenders”), JPMORGAN CHASE BANK, NATIONAL
ASSOCIATION (successor by merger to Bank One, NA, having its main office in Chicago, Illinois),
individually as a Lender, as LC Issuer, and Swing Line Lender and as agent (the “Agent”)
for the Lenders under that certain Third Amended and Restated Credit Agreement dated as of May 13,
2005 by and among the Borrowers, the Lenders and the Agent, (as such may be amended, restated,
supplemented or otherwise modified, the “Credit Agreement”). Defined terms used herein and
not otherwise defined herein shall have the meaning given to them in the Credit Agreement.

WITNESSETH

          WHEREAS, the Borrowers, the Lenders, the LC Issuer, the Swing Line Lender and the Agent are
parties to the Credit Agreement;

          WHEREAS, the Borrowers have requested that the Lenders amend the Credit Agreement in certain
respects; and

          WHEREAS, the Lenders party hereto and the Agent are willing to amend the Credit Agreement, in
each case 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 Borrowers, the Lenders and the Agent have agreed to the following:

     1. Amendment to Credit Agreement. Effective as of the Amendment Effective Date and
subject to the satisfaction of the conditions precedent set forth in Section 2 below, the
Credit Agreement is hereby amended as follows:

 

 

          1.1. The definition of “Applicable Facility Fee” contained in Article I of the Credit
Agreement is hereby amended in its entirety to read as follows:

     ”Applicable Facility Fee” means for any day, the percentage rate per annum set forth
below opposite the Leverage Ratio in effect on such day:

	 	 	 	 	 
	Leverage	 	Applicable
	Ratio:	 	Facility Fee:
	 	 	But Less than	 	 
	Greater than	 	or Equal to	 	 
	—
	 	1.5	 	0.150%
	1.5
	 	2.0	 	0.175%
	2.0
	 	2.5	 	0.200%
	2.5
	 	3.0	 	0.225%
	3.0
	 	3.5	 	0.250%
	3.5
	 	—	 	0.300%

The Applicable Facility Fee shall be adjusted (upward or downward) effective five Business
Days after the Agent has received (and such adjustment, if any, shall be based upon) the
Borrower’s compliance certificate delivered with the Borrower’s financial statements
pursuant to clauses (i) and (ii) of Section 6.1; provided,
however, that before receipt by the Agent of the Borrower’s compliance certificate
delivered with the Borrower’s financial statements pursuant to clauses (i) and
(ii) of Section 6.1 for the fiscal quarter ending June 30, 2006, the
Applicable Facility Fee shall be 0.225% per annum; and provided, further,
that if the Borrower fails to deliver to the Agent a compliance certificate and financial
statements pursuant to clauses (i) and (ii) of Section 6.1 for any
reason, then the Applicable Facility Fee shall be 0.300%, effective until five Business Days
after such compliance certificate and financial statements are received by the Agent.

          1.2. The definition of “Applicable Margin” contained Article I of the Credit Agreement
is hereby amended in its entirety to read as follows:

     ”Applicable Margin” means, with respect to a Loan for any day, the applicable
percentage rate per annum set forth below opposite the Leverage Ratio in effect on such day:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Applicable Margin:
	Leverage Ratio:	 	Eurocurrency Loans	 	Eurocurrency Loans	 	 
	 	 	But Less than	 	which are Revolving	 	which are Term	 	 
	Greater than	 	or Equal to	 	Loans	 	Loans	 	Floating Rate Loans
	—
	 	1.5	 	0.60%	 	0.75%	 	0%
	1.5
	 	2.0	 	0.70%	 	0.875%	 	0%
	2.0
	 	2.5	 	0.80%	 	1.00%	 	0%
	2.5
	 	3.0	 	0.90%	 	1.125%	 	0%
	3.0
	 	3.5	 	1.00%	 	1.25%	 	0.25%
	3.5
	 	—	 	1.20%	 	1.50%	 	0.50%

2

 

The Applicable Margin for new as well as outstanding Loans shall be adjusted (upward or
downward) effective five Business Days after the Agent has received (and such adjustment, if
any, shall be based upon) the Borrower’s compliance certificate delivered with the
Borrower’s financial statements pursuant to clauses (i) and (ii) of
Section 6.1; provided, however, that before receipt by the Agent of
the Borrower’s compliance certificate delivered with the Borrower’s financial statements
pursuant to clauses (i) and (ii) of Section 6.1 for the fiscal
quarter ending June 30, 2006, the Applicable Margin for (a) Eurocurrency Loans which are
Revolving Loans shall be 0.90%, (b) Eurocurrency Loans which are Term Loans shall be 1.125%
and (c) Floating Rate Loans shall be 0%; and provided, further, that if the
Borrower fails to deliver to the Agent a compliance certificate and financial statements
pursuant to clauses (i) and (ii) of Section 6.1 for any reason, then
the Applicable Margin for (a) Eurocurrency Loans which are Revolving Loans shall be 1.20%,
(b) Eurocurrency Loans which are Term Loans shall be 1.50% and (c) Floating Rate Loans shall
be 0.50%, in each case effective until five Business Days after such compliance certificate
and financial statements are received by the Agent.

          1.3. The definition of “Consolidated Net Worth” contained in Article I of the Credit
Agreement is hereby amended and restated in its entirety as set forth below:

     ”Consolidated Net Worth” means, as of any date of determination, the consolidated total
stockholders’ equity (including capital stock, additional paid-in capital and retained
earnings but excluding the effects of any non-cash adjustments caused by the implementation
of the proposed amendments to Financial Accounting Standards No. 87 (Employers’ Accounting
for Pensions) and Financial Accounting Standards No. 106 (Employers’ Accounting for
Postretirement Benefits Other than Pensions) pursuant to which, inter alia, the Borrower may
be required to recognize its actual unfunded pension liability on its balance sheet) of the
Borrower and its Subsidiaries determined in accordance with Agreement Accounting Principles.

          1.4. The definition of “Maximum Foreign Currency Amount” contained in Article I of the
Credit Agreement is hereby amended to delete the reference to “$150,000,000” therein and substitute
“$225,000,000” in lieu thereof.

          1.5. The definition of “Maximum Non-U.S. Subsidiary Borrower Amount” contained in Article
I of the Credit Agreement is hereby amended to delete the reference to “$100,000,000” therein
and substitute “$200,000,000” in lieu thereof.

          1.6. The definition of “Revolving Loan Termination Date” contained in Article I of the
Credit Agreement is hereby amended to delete the reference to “September 1, 2009” therein and
substitute “July 1, 2010” in lieu thereof.

3

 

          1.7. Section 2.27 of the Credit Agreement is hereby amended to delete the reference to
“$325,000,000” therein and substitute “$425,000,000” in lieu thereof.

          1.8. The Revolving Loan Commitment of each Revolving Loan Lender and the outstanding Term
Loans of each Term Loan Lender on the Amendment Effective Date are set forth on Annex I to
this Amendment.

          1.9. Schedule 8 of the Credit Agreement is hereby amended in its entirety pursuant to
Annex II hereto.

     2. Conditions of Effectiveness. This Amendment shall become effective and be deemed
effective as of the date of satisfaction of the following conditions (the “Amendment Effective
Date”), if, and only if, the Agent shall have received each of the following:

     (a) duly executed signature pages of this Amendment from the Borrowers and each of the
Lenders (including each hereinafter-defined Departing Lender);

     (b) a reaffirmation from the Borrower of the Parent Guaranty and from each of the
Borrower’s Subsidiaries which are parties to a Subsidiary Guaranty in the form of
Exhibit A attached hereto and made a part hereof;

     (c) (i) for the ratable account of each Lender (other than a Departing Lender), an
amendment fee equal to 0.05% of the sum of such Lender’s Revolving Loan Commitment and
outstanding Term Loans, in each case after giving effect to this Amendment and (ii) payment
and/or reimbursement of the Agent’s and Amended Facility Arranger’s fees and expenses
(including reasonable fees and expenses of counsel) in connection with this Amendment; and

     (d) such other opinions, documents, instruments and agreements as the Agent may
reasonably request.

     3. Acknowledgement and Consent with Respect to Departing Lenders. Each of the
Borrowers and each Lender, including, without limitation, each Lender identified on the signature
pages hereto as a “Departing Lender”, hereby acknowledges and agrees that, notwithstanding any
provisions to the contrary in the Credit Agreement (including the limitations on reductions of the
Aggregate Revolving Loan Commitment in Section 2.7(c) and the limitations on assignments or
transfers of interests under the Credit Agreement set forth in Sections 12.1, 12.2
and 12.3), on the effective date hereof, and subject to any such Departing Lender’s receipt
of payment in full of the Loans and other amounts at such time owing to it under the Credit
Agreement, (a) the Commitments shall be amended and restated in their entirety pursuant to
Section 1.8 above, (b) each Departing Lender’s Revolving Loan Commitment under the Credit
Agreement (including all of its participation interests in existing Swing Line Loans and Letters of
Credit and its obligation to participate in additional Swing Line Loans and Letters of Credit)
shall automatically be deemed terminated and the only Revolving Loan Commitments on the effective
date shall be those identified on the commitment schedule attached hereto as Annex I
hereto; (c) such Departing Lender shall have no further rights or obligations as a Lender under the
Credit Agreement and shall cease to be a party thereto (but shall continue to be entitled to the
benefits of Article III and Section 9.7 of the Credit Agreement); and (d) the
consent of

4

 

such Departing Lender shall be limited to the acknowledgements and agreements set forth in
this Section 3 and shall not be required as a condition to the effectiveness of any other
amendments set forth herein.

     4. Representations and Warranties of the Borrowers. The Borrowers hereby represent and
warrant as follows:

     (a) This Amendment and the Credit Agreement as previously executed and as amended
hereby, constitute legal, valid and binding obligations of the Borrowers and are enforceable
against the Borrowers in accordance with their terms.

     (b) Upon the effectiveness of this Amendment, the Borrowers hereby reaffirm all
covenants, representations and warranties made in the Credit Agreement and other Credit
Documents, to the extent the same are not amended hereby, and agree that all such covenants,
representations and warranties shall be deemed to have been remade as of the effective date
of this Amendment (except to the extent such representations or warranties specifically
relate to any earlier date, in which case such representations and warranties shall have
been true and correct as of such earlier date).

     (c) No Default or Unmatured Default has occurred and is continuing under the Credit
Agreement.

     5. Reference to the Effect on the Credit Agreement.

     (a) Upon the effectiveness of this Amendment, on and after the date hereof, each
reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or
words of like import shall mean and be a reference to the Credit Agreement, as amended
previously and as amended hereby.

     (b) Except as previously modified in writing, and 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 any of 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.

     6. Costs and Expenses. The Borrowers agree to pay all reasonable costs, fees and
out-of-pocket expenses (including attorneys’ fees and expenses charged to the Agent) incurred by
the Agent in connection with the preparation, arrangement, execution and enforcement of this
Amendment.

     7. Governing Law. This Amendment shall be governed by and construed in accordance
with the internal laws (as opposed to the conflict of law provisions) of the State of Illinois, but
giving effect to federal laws applicable to national banks.

5

 

     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 to the
Amendment on any number of separate counterparts and all of said counterparts taken together shall
be deemed to constitute one and the same instrument. A facsimile signature page hereto sent to the
Agent or the Agent’s counsel shall be effective as a counterpart signature and each party executing
such a facsimile counterpart shall be deemed to agree to deliver originals to the Agent thereof.

*******

6

 

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

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	GARDNER DENVER, INC., as a Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Helen W. Cornell	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:
	 	Helen W. Cornell	 	 
	 

	 	Title:
	 	Vice President, Finance and CFO	 	 
	 
	 	 	 	 	 	 
	 	 	GD FIRST (UK) LIMITED, as a Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Helen W. Cornell	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:
	 	Helen W. Cornell	 	 
	 

	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 
	 	 	GARDNER DENVER HOLDINGS GMBH & CO. 
KG, as a Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Thomas Kurth	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Thomas Kurth	 	 
	 

	 	Title:
	 	Managing Director/Geschäftsführer
Gardner Denver Holdings Verwaltungs GmbH,
General Partner of Gardner Denver Holdings GmbH & Co.
KG	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION (successor by merger to Bank One, NA
(Main Office Chicago)),
Individually as a Lender, as a LC Issuer, the Swing Line Lender and as Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Suzanne Ergastolo	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Suzanne Ergastolo	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Vice President	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	BEAR STEARNS CORPORATE LENDING INC.,
Individually as a Lender and as Syndication Agent for the Term Loan Facility	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Richard Bram Smith	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Richard Bram Smith	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Vice President	 	 
	 

	 	 	 	 	 	 

 Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK,
NATIONAL ASSOCIATION,
Individually as a Lender and as Syndication Agent for the Revolving Loan
Facility	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ C. Jeffrey Seaton	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	C. Jeffrey Seaton	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Managing Director	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	HARRIS N.A., formerly known as Harris Trust and Savings Bank, Individually as a
Lender and as
a Co-Documentation Agent for the Revolving Loan Facility	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Thad Rasche	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Thad Rasche	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Director	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	NATIONAL CITY BANK,

Individually as a Lender and as
a Co-Documentation 
Agent for the Revolving Loan Facility	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jennifer L. Kofod	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Jennifer L. Kofod	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Senior Vice President	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION,
Individually as a Lender and as a Co-Documentation Agent for the Revolving Loan
Facility	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mary K. Young	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Mary K. Young	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Senior Vice President	 	 
	 

	 	 	 	 	 	 

 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., CHICAGO BRANCH (f/k/a The Bank of
Tokyo-Mitsubishi, Ltd., Chicago Branch),
Individually as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Tsuguyuki Umene	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Tsuguyuki Umene	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Deputy General Manager	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION,

Individually as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Karen Meyer	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Karen Meyer	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Vice President	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	NORDEA BANK FINLAND plc,

Individually as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Henrik M. Steffensen	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Henrik M. Steffensen	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Senior Vice President	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Gerald E. Chelius	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Gerald E. Chelius	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	SVP Credit	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	SCOTIABANC INC.,

Individually as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ N. Bell	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	N. Bell	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Sr. Manager	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,

Individually as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Louis D. Serio	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Louis D. Serio	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Vice President	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	FIFTH THIRD BANK,

Individually as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert M. Sander	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Robert M. Sander	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Vice President	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	LASALLE BANK NATIONAL ASSOCIATION,

Individually as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Oscar D. Johnson, Sr.	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Oscar D. Johnson, Sr.	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Senior Vice President	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	FIRST BANK,

Individually as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Keith M. Schmeider	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Keith M. Schmeider	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Senior Vice President	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.,

Individually as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/   Jason R. Hickey	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Jason R. Hickey	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Senior Vice President	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	GUARANTY BANK,

Individually as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/   Robert S. Hays	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Robert S. Hays	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Senior Vice President	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	BAYERISCHE HYPO-UND VEREINSBANK AG, 
NEW YORK BRANCH,

Individually as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/   Ken Hamilton	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Ken Hamilton	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Director	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/   Richard
Cordover	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Richard
Cordover	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Director	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	KBC BANK, NV,

Individually as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/   Jean-Pierre
Diels	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Jean-Pierre
Diels	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	First Vice President	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/   William
Cavenaugh	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	William
Cavenaugh	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Vice President	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	HSBC BANK USA, NATIONAL ASSOCIATION,

Individually as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/   Bruce Wicks	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Bruce Wicks	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	First Vice President	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	Solely with respect to
the acknowledgements and agreements set forth in Section
3 of this Amendment	 	 
	 
	 	 	 	 	 	 
	 	 	MERCANTILE TRUST & SAVINGS BANK,
as a Departing Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/   Richard J.
Halter	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Richard J.
Halter	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Vice President — Credit
Administrator	 	 
	 

	 	 	 	 	 	 

 Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	Solely with respect to
the acknowledgements and agreements set forth in Section
3 of this Amendment	 	 
	 
	 	 	 	 	 	 
	 	 	BNP PARIBAS,

as a Departing Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/   Andrew Strait	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Andrew Strait	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Managing Director	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/   Christopher S.
Grumboski	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Christopher S.
Grumboski	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Director	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	Solely with respect to
the acknowledgements and agreements set forth in Section
3 of this Amendment	 	 
	 
	 	 	 	 	 	 
	 	 	ASSOCIATED BANK, N.A.,

as a Departing Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/   Daniel
Holzhauer	 	 
	 

	 	 	 	 	 	 
	 

	 	Print Name:	 	Daniel
Holzhauer	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Vice President	 	 
	 

	 	 	 	 	 	 

Signature Page to Amendment No. 2

Gardner Denver, Inc.

 

 

EXHIBIT A

REAFFIRMATION

     Each of the undersigned hereby acknowledges receipt of a copy of the foregoing Amendment No. 2
dated August 16, 2006 (the “Amendment”) in connection with that certain Credit Agreement
dated as of May 13, 2005 (as the same may be amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”) among Gardner Denver, Inc., a Delaware
corporation, GD First (UK) Limited, a limited company organized under the laws of England and
Wales, and Gardner Denver Holdings GmbH & Co. KG, a limited partnership organized under the laws of
Germany, the institutions from time to time parties to that certain Credit Agreement as Lenders and
JPMorgan Chase Bank, National Association, as successor by merger to Bank One, NA, as an LC Issuer,
the Swing Line Lender and as Agent for the Lenders. Capitalized terms used in this 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 Parent Guaranty, the
Subsidiary Guaranty and any other Credit Document executed by it and acknowledges and agrees that
such agreement and each and every such Credit 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 and as the same may
from time to time hereafter be amended, modified or restated.

Dated as of August 16, 2006

[Signature pages follow]

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	GARDNER DENVER, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Helen W. Cornell 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Helen W. Cornell	 	 
	 	 	Title: Vice President, Finance and CFO	 	 
	 
	 	 	 	 	 	 
	 	 	GARDNER DENVER INTERNATIONAL, INC.

ALLEN-STUART EQUIPMENT COMPANY, INC.

GARDNER DENVER WATER JETTING SYSTEMS,
INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Helen W. Cornell 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Helen W. Cornell	 	 
	 	 	Title: Chairman	 	 
	 
	 	 	 	 	 	 
	 	 	GARDNER DENVER HOLDINGS INC.

AIR-RELIEF, INC.

GARDNER DENVER NASH LLC

EMCO WHEATON USA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Helen W. Cornell 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Helen W. Cornell	 	 
	 	 	Title: Vice President, Finance	 	 
	 
	 	 	 	 	 	 
	 	 	TCM INVESTMENTS, INC.

THOMAS INDUSTRIES INC.

THOMAS INDUSTRIES ASIA PACIFIC,
INC.

THOMAS-OBERDORFER PUMPS, INC.

RIETSCHLE THOMAS HANOVER, INC.

GARDNER DENVER THOMAS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Helen W. Cornell 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Helen W. Cornell	 	 
	 	 	Title: President	 	 

Signature Page to Reaffirmation with respect to Amendment No. 2

Gardner Denver, Inc.

 

 

ANNEX I

Revolving Loan Commitments and outstanding Term Loans

	 	 	 	 	 	 	 	 	 
	 	 	Revolving Loan	 	Outstanding Term
	Lender	 	Commitment	 	Loans
	JPMorgan Chase Bank, N.A.
	 	$	22,900,000.00	 	 	$	17,653,846.18	 
	Bear Stearns Corporate Lending Inc.
	 	$	6,000,000.00	 	 	$	22,230,769.23	 
	Wachovia Bank, National Association
	 	$	19,200,000.00	 	 	$	13,076,923.07	 
	Harris N.A.
	 	$	19,200,000.00	 	 	$	13,076,923.07	 
	National City Bank
	 	$	20,000,000.00	 	 	$	16,000,000.00	 
	KeyBank National Association
	 	$	16,700,000.00	 	 	$	9,766,309.65	 
	U.S. Bank National Association
	 	$	17,500,000.00	 	 	$	17,041,382.67	 
	The Bank of TokyoMitsubishi UFJ,
Ltd., Chicago Branch
	 	$	17,500,000.00	 	 	$	20,000,000.00	 
	Nordea Bank Finland plc
	 	$	15,500,000.00	 	 	$	15,000,000.00	 
	Scotiabanc Inc.
	 	$	15,000,000.00	 	 	$	9,807,692.31	 
	The Bank of New York
	 	$	12,000,000.00	 	 	$	8,500,000.00	 
	Fifth Third Bank
	 	$	12,000,000.00	 	 	$	6,538,461.54	 
	LaSalle Bank National Association
	 	$	12,500,000.00	 	 	$	8,000,000.00	 
	First Bank
	 	$	9,000,000.00	 	 	$	7,192,307.69	 
	Bank of America, N.A.
	 	$	4,000,000.00	 	 	$	19,000,000.00	 
	Guaranty Bank
	 	$	0.00	 	 	$	13,076,923.07	 
	Bayerische
Hypo-Und Vereinsbank,
AG, New York Branch
	 	$	2,000,000.00	 	 	$	15,500,000.00	 
	KBC Bank, NV
	 	$	2,000,000.00	 	 	$	8,500,000.00	 
	HSBC Bank USA, National Association
	 	$	2,000,000.00	 	 	$	8,500,000.00	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Total
	 	$	225,000,000	 	 	$	248,461,538.48	 
	 
	 	 	 	 	 	 	 	 

 

 

ANNEX II

Existing Investments

Attachedexv10w6

 

Exhibit 10.6

GARDNER DENVER, INC.

SUPPLEMENTAL EXCESS

DEFINED CONTRIBUTION PLAN

(September 1, 1998 Restatement)

(As amended on various dates and incorporated

into one document for ease of reference).

 

 

GARDNER DENVER, INC.

SUPPLEMENTAL EXCESS

DEFINED CONTRIBUTION PLAN

(September 1, 1998 Restatement)

	 	 	 	 	 	 	 
	Section	 	 	 	Page	 
	 	 	ARTICLE I	 	 	 	 
	 	 	DEFINITIONS
	 	 	 	 
	 	 	 
	 	 	 	 
	1.1	 	Definitions 
	 	 	2	 
	1.2	 	Construction 
	 	 	4	 
	 	 	 
	 	 	 	 
	 	 	ARTICLE II
	 	 	 	 
	 	 	ELIGIBILITY FOR PLAN PARTICIPATION
	 	 	5	 
	 	 	 
	 	 	 	 
	 	 	ARTICLE III
	 	 	 	 
	 	 	SUPPLEMENTAL CONTRIBUTIONS
	 	 	 	 
	 	 	 
	 	 	 	 
	3.1	 	Supplemental Matching Contributions 
	 	 	6	 
	3.2	 	Supplemental Basic Contributions 
	 	 	6	 
	 	 	ARTICLE IV
	 	 	 	 
	 	 	SEPARATE ACCOUNTS
	 	 	 	 
	4.1	 	Types of Separate Accounts 
	 	 	7	 
	4.2	 	Deemed Investments 
	 	 	7	 
	 	 	ARTICLE V
	 	 	 	 
	 	 	DISTRIBUTION
	 	 	 	 
	 	 	 
	 	 	 	 
	5.1	 	Eligibility for Distribution 
	 	 	8	 
	5.2	 	Method of Distribution 
	 	 	8	 
	 	 	 
	 	 	 	 
	 	 	ARTICLE VI
	 	 	 	 
	 	 	BENEFICIARIES
	 	 	9	 
	 	 	 
	 	 	 	 
	 	 	ARTICLE VII
	 	 	 	 
	 	 	ADMINISTRATIVE PROVISIONS
	 	 	 	 
	 	 	 
	 	 	 	 
	7.1	 	Administration 
	 	 	10	 
	7.2	 	Powers and Authorities of the Board 
	 	 	10	 
	7.3	 	Indemnification 
	 	 	10	 

ii

 

	 	 	 	 	 	 	 
	Section	 	 	 	Page	 
	 	 	ARTICLE VIII
	 	 	 	 
	 	 	AMENDMENT AND TERMINATION 
	 	 	12	 
	 	 	 
	 	 	 	 
	 	 	ARTICLE IX
	 	 	 	 
	 	 	ADOPTION BY SUBSIDIARIES
	 	 	13	 
	 	 	 
	 	 	 	 
	 	 	ARTICLE X
	 	 	 	 
	 	 	MISCELLANEOUS
	 	 	 	 
	 	 	 
	 	 	 	 
	10.1	 	Non-Alienation of Benefits 
	 	 	14	 
	10.2	 	Payment of Benefits to Others 
	 	 	14	 
	10.3	 	Plan Non-Contractual 
	 	 	14	 
	10.4	 	Funding 
	 	 	14	 
	10.5	 	Controlling Status 
	 	 	15	 
	10.6	 	Claims of Other Persons 
	 	 	15	 
	10.7	 	Severability 
	 	 	15	 
	10.8	 	Governing Law 
	 	 	15	 

iii

 

GARDNER DENVER, INC.

SUPPLEMENTAL EXCESS

DEFINED CONTRIBUTION PLAN

(September 1, 1998 Restatement)

     WHEREAS, effective as of March 1, 1994, Gardner Denver, Inc. (heretofore known as Gardner
Denver Machinery Inc. and hereinafter referred to as the “Company”) established a supplemental
retirement plan for the benefit of a select group of management or highly compensated employees
employed by the Company or an Affiliate thereof whose benefits under the Gardner Denver, Inc.
Retirement Savings Plan are limited by the provisions of Section 401(a)(17) or Section 415 of the
Internal Revenue Code of 1986, as amended or are reduced otherwise due to participation in a
deferred compensation program; and

     WHEREAS, the Company desires to amend the Plan in certain respects;

     NOW, THEREFORE, effective as of September 1, 1998, the Plan is hereby amended and restated in
the manner hereinafter set forth.

 

 

ARTICLE I

DEFINITIONS

     1.1 Definitions. Except as otherwise required by the context, the terms used in
the Plan shall have the meaning hereinafter set forth.

     (a) Affiliate. The term “Affiliate” shall mean any member of a
controlled group of corporations (as determined under Section 414(b) of the Code) of
which the Company is a member; any member of a group of trades or businesses under
common control (as determined under Section 414(c) of the Code) with the Company;
and any member of an affiliated service group (as determined under Section 414(m) of
the Code) of which the Company is a member.

     (b) Beneficiary. The term “Beneficiary” shall mean the person who, in
accordance with the provisions of Article VI, shall be entitled to receive a
distribution hereunder in the event a Participant dies before his interest under the
Plan has been distributed to him in full.

     (c) Board. The term “Board” shall mean the Board of Directors of the
Company.

     (d) Code. The term “Code” shall mean the Internal Revenue Code of
1986, as amended from time to time. Reference to a section of the Code shall
include such section and any comparable sections of any future legislation that
amends, supplements, or supersedes such section.

     (e) Company. The term “Company” shall mean Gardner Denver, Inc., its
corporate successors, and the surviving corporation resulting from any merger of
Gardner Denver, Inc. with any other corporation or corporations.

     (f) Compensation. The term “Compensation” shall mean the total wages
and salary, including overtime payments, commissions, severance pay, and other
monetary remuneration, if any, which is included in a Participant’s gross pay with
respect to a month for services rendered to an Employer, but excluding any
relocation expense reimbursements as well as foreign service premiums and
allowances, plus Basic Contributions made on behalf of such Participant under the
Gardner Denver Retirement Savings Plan and Supplemental Basic Contributions credited
to such Participant under Section 3.2 of the Plan.

     (g) Employer. The term “Employer” shall mean the Company as well as any
Affiliate which may adopt the Plan in accordance with the provisions of Article IX.

2

 

     (h) Gardner Denver Deferral Plan. The term “Gardner Denver Deferral
Plan” shall mean the Gardner Denver, Inc. Management Incentive Compensation Deferral
Plan, as amended from time to time.

     (i) Gardner Denver Pension Plan. The term “Gardner Denver Pension
Plan” shall mean the Gardner Denver, Inc. Pension Plan, as amended from time to
time.

     (j) Gardner Denver Retirement Savings Plan. The term “Gardner Denver
Retirement Savings Plan” shall mean the Gardner Denver, Inc. Retirement Savings Plan, as
amended from time to time.

     (k) Participant. The term “Participant” shall mean any employee of an
Employer or any other individual, who participates in the Plan pursuant to Article
II of the Plan.

     (l) Plan. The term “Plan” shall mean the Gardner Denver, Inc.
Supplemental Excess Defined Contribution Plan as set forth herein.

     (m) Prior Plan. The term “Prior Plan” shall mean the Cooper
Industries, Inc. Supplemental Excess Defined Contribution Plan as in effect on
February 28, 1994.

     (n) Separate Account. The term “Separate Account” shall mean each of
the accounts maintained in the name of a Participant pursuant to Section 4.1 of the
Plan.

     (o) Supplemental Basic Account. The term “Supplemental Basic Account”
shall mean the Separate Account to which Supplemental Basic Contributions are
credited in accordance with the provisions of Sections 3.2 and 4.1 of the Plan.

     (p) Supplemental Basic Contributions. The term “Supplemental Basic
Contributions” shall mean the Contributions credited to a Participant under the Plan
pursuant to Section 3.2.

     (q) Supplemental Matching Account. The term “Supplemental Matching
Account” shall mean the Separate Account to which Supplemental Matching
Contributions are credited in accordance with the provisions of Sections 3.1 and 4.1
of the Plan.

     (r) Supplemental Matching Contributions. The term “Supplemental
Matching Contributions” shall mean the Employer contributions credited to a
Participant under the Plan pursuant to Section 3.1.

3

 

     (s) Supplemental Non-Elective Account. The term “Supplemental Non-Elective
Account” shall mean the Separate Account to which Supplemental Non-Elective Contributions
are credited in accordance with the provisions of Sections 3.3 and 4.1 of the Plan.

     (t) Supplemental Non-Elective Contributions. The term “Supplemental
Non-Elective Contributions” shall mean the contributions credited under the Plan pursuant to
Section 3.3 to each Participant who participated in the Gardner Denver, Inc. Supplemental
Excess Defined Benefit Plan on October 31, 2006 and each such other Participant, if any, as
may be so designated by the Chief Executive Officer of the Company and/or the Board (or a
committee thereof) as eligible to have such Supplemental Non-Elective Contributions credited
to his or her Supplemental Non-Elective Account.

     (u) Supplemental Pension Account. The term “Supplemental Pension Account”
shall mean the Separate Account to which a Supplemental Pension Credit is credited in
accordance with the provisions of Sections 3.4 and 4.1 of the Plan.

     (v) Supplemental Pension Credit. The term “Supplemental Pension Credit” shall
mean the credit provided under the Plan to a Participant who participated in the Gardner
Denver, Inc. Supplemental Excess Defined Benefit Plan on October 31, 2006 pursuant to
Section 3.4.

     1.2 Construction. Where necessary or appropriate to the meaning hereof, the singular
shall be deemed to include the plural, the plural to include the singular, the masculine to include
the feminine, and the feminine to include the masculine.

ARTICLE II

ELIGIBILITY FOR PLAN PARTICIPATION

     The Chief Executive Officer of the Company and each other individual who is a member of a
select group of management or highly compensated employees of the Company and who is designated by
the Chief Executive Officer of the Company and/or by the Board (or a committee thereof) to
participate in the Plan shall become a Participant in the Plan automatically upon such
designation. Each individual who was a participant in the Gardner Denver, Inc. Supplemental

4

 

Excess Defined Benefit Plan on October 31, 2006 shall become a Participant in the Plan
automatically on November 1, 2006, subject to all other terms and conditions of the Plan.

ARTICLE III

SUPPLEMENTAL CONTRIBUTIONS

     3.1 Supplemental Matching Contributions. As of the last day of each month, the
Supplemental Matching Account of each Participant shall be credited with Supplemental Matching
Contributions equal to the sum of:

	 	(a)	 	the amount with respect to which Matching Contributions under
the Gardner Denver Retirement Savings Plan are limited for such month
due to the provisions of Section 415 of the Code; and
	 
	 	(b)	 	the amount that would have been contributed by an Employer
under the Gardner Denver Retirement Savings Plan for such month if the
Participant had not participated in the Gardner Denver Deferral Plan
and had made contributions under the Gardner Denver Retirement Savings
Plan with respect to the compensation deferred under the Gardner Denver
Deferral Plan in accordance with his election in effect for such month
under the Gardner Denver Retirement Savings Plan and the provisions of
the Gardner Denver Retirement Savings Plan in effect for such month
without regard to any limitations imposed by Section 415 of the Code.

     Notwithstanding anything herein to the contrary, any Supplemental Matching Contribution
credited to a Supplemental Matching Account of a Participant on or after November 1, 2006 shall be
reflected as a credit in the form of cash.

     3.2 Supplemental Basic Contributions. As of the last day of each month, the
Supplemental Basic Accounts (pre-tax) of each Participant shall be credited with Supplemental Basic
Contributions equal to the Basic Contributions that would have been contributed to the Gardner
Denver Retirement Savings Plan on his behalf for such month except for the provisions of Sections
401(k), 401(a)(17), 402(g) and Section 415 of the Code and that were deferred from his Compensation
in accordance with a duly executed and filed Compensation reduction
authorization form; provided, however, that in no event shall Supplemental Basic Contributions

5

 

when
added to the amount of Basic Contributions for such Participant for such month under the Gardner
Denver Retirement Savings Plan exceed maximum percentage of such Participant’s Compensation
permitted to be deferred under the Gardner Denver Retirement Savings Plan on behalf of such
Participant.

     3.3 Supplemental Non-Elective Contributions. As of each pay date, the Supplemental
Non-Elective Account of each Participant who was a participant in the Gardner Denver, Inc.
Supplemental Excess Defined Benefit Plan on October 31, 2006 and of each such other Participant, if
any, as may be so designated by the Chief Executive Officer of the Company and/or the Board (or a
committee thereof) to receive Supplemental Non-Elective Contributions credits shall be credited
with Supplemental Non-Elective Contributions equal to twelve percent (12%) of such Participant’s
Compensation which, when added to such Participant’s Compensation for all prior months during the
calendar year, is in excess of the limitation set forth in Code Section 401(a)(17).

     3.4 Supplemental Pension Credit. As of November 1, 2006, the Supplemental Pension
Account of each Participant who was a participant in the Gardner Denver, Inc. Supplemental Excess
Defined Benefit Plan on October 31, 2006 shall be credited with an amount which is the value of
such Participant’s supplemental benefit and account in the Gardner Denver, Inc. Supplemental Excess
Defined Benefit Plan as of October 31, 2006, determined in accordance with the terms of Article III
of the Gardner Denver, Inc. Supplemental Excess Defined Benefit Plan in effect on October 31, 2006.

6

 

ARTICLE IV

SEPARATE ACCOUNTS

     4.1 Types of Separate Accounts. Each Participant shall have established in his
name Separate Accounts which shall reflect the type of contributions as well as any earnings (or
losses) thereon credited to him pursuant to Article III and Section 4.2. Such Separate Accounts
shall be as follows:

	 	(a)	 	a Supplemental Matching Account which shall reflect the
Supplemental Matching Contributions credited to a Participant pursuant
to Section 3.1 and any earnings (or losses) credited thereon pursuant
to Section 4.2;
	 
	 	(b)	 	a Supplemental Basic Account (pre-tax) which shall reflect the
pre-tax Supplemental Basic Contributions credited to a Participant
pursuant to Section 3.2 and any earnings (or losses) credited thereon
pursuant to Section 4.2; and
	 
	 	(c)	 	a Supplemental Basic Account (post-tax) which shall reflect
the post-tax Supplemental Basic Contributions credited to a
Participant prior to May 1, 1997 and any earnings (or losses) credited
thereon pursuant to Section 4.2.
	 
	 	(d)	 	a Supplemental Non-Elective Account which shall reflect the Supplemental
Non-Elective Contributions credited to a Participant who was a participant in the
Gardner Denver, Inc. Supplemental Excess Defined Benefit Plan on October 31, 2006
pursuant to Section 3.3 and to such other Participant, if any, as may be so designated
in accordance with Section 3.3 to receive Supplemental Non-Elective Contributions
credits and any earnings (or losses) credited thereon pursuant to Section 4.2.
	 
	 	(e)	 	a Supplemental Pension Account which shall reflect the Supplemental Pension
Credit credited to a Participant who was a participant in the Gardner Denver, Inc.
Supplemental Excess Defined Benefit Plan on October 31, 2006 pursuant to Section 3.4
and any earnings (or losses) credited thereon pursuant to Section 4.2.

     4.2 Deemed Investments. The Supplemental Basic Account, Supplemental Non-Elective
Account and Supplemental Pension Account of a Participant shall be deemed each business day to be
credited with earnings (and losses) equal to the earnings and losses in such

7

 

investment as may be permitted by the Company from time to time and as the Participant may
elect in such form, time and manner as the Company may prescribe. The portion of the Supplemental
Matching Account of a Participant relating to any Supplemental Matching Contributions credited
before November 1, 2006 shall be deemed to be invested in the common stock of the Company and shall
be credited with deemed dividends, if any, thereon, and, on and after November 1, 2006, a
Participant may not elect to have all or any portion of the balance of such portion of his or her
Supplemental Matching Account be deemed to be invested in any other investment. The portion of a
Participant’s Supplemental Matching Account relating to any Supplemental Matching Contributions
credited on or after November 1, 2006 shall be deemed to be invested in such investment as may be
permitted by the Company from time to time and as the Participant may elect in such form, time and
manner as the Company may prescribe. Investments in which the Supplemental Basic Account,
Supplemental Non-Elective Account, Supplemental Pension Account and Supplemental Matching Account
(relating to Supplemental Matching Contributions credited on and after November 1, 2006) may be
permitted to be deemed invested in accordance with this Section shall be substantially similar in
the aggregate to those available under the Gardner Denver Retirement Savings Plan, but in no event
may they be permitted to be deemed invested in the common stock of the Company.

ARTICLE V

DISTRIBUTION

     5.1 Vesting and Eligibility for Distribution. The vested balance credited to a
Participant’s Separate Accounts shall be distributed to such Participant or his or her Beneficiary
coincident with, and in the same manner and form as, the payment of benefits of such Participant
from (i) except as otherwise provided in (ii), the Gardner Denver Retirement Savings Plan and

8

 

(ii) in the case of such Participant’s Supplemental Pension Account, if any, the Gardner Denver,
Inc. Pension Plan. Notwithstanding anything herein to the contrary, the portion of a Participant’s
Supplemental Matching Account relating to Supplemental Matching Contributions credited before
November 1, 2006 that is deemed to be invested in the common stock of the Company, in accordance
with the terms of the Plan, shall be distributed in the form of common stock of the Company at the
same time and in the same manner as otherwise provided hereunder. A Participant shall be 100
percent vested in the balance credited to all of his or her Separate Accounts other than the
Supplemental Pension Account and the Supplemental Non-Elective Account. A Participant shall be
vested in the balance of his or her Supplemental Pension Account and Supplemental Non-Elective
Account based on Years of Vesting Service, as determined under the Gardner Denver Retirement
Savings Plan, in accordance with the following schedule:

	 	 	 	 	 	 	 
	 	 	Full Years of Vesting Service	 	Vested Interest
	 
	 	Less than 3 Years	 	 	0	%
	 
	 	3 Years or More	 	 	100	%

ARTICLE VI

BENEFICIARIES

     In the event a Participant dies before his interest under the Plan has been distributed
to him in full, any remaining interest shall be distributed pursuant to Article V to his
Beneficiary who shall be the person designated as his beneficiary under the Gardner Denver
Retirement Savings Plan.

9

 

ARTICLE VII

ADMINISTRATIVE PROVISIONS

     7.1 Administration. The Plan shall be administered by the Board which shall
administer it in a manner consistent with the administration of the Gardner Denver Retirement
Savings Plan, as from time to time amended, except that the Plan shall be administered as an
unfunded plan not intended to meet the qualification requirements of Section 401 of the Code.

     7.2 Powers and Authorities of the Board. The Board shall have full power and
authority to interpret, construe and administer the Plan and its interpretations and construction
hereof, and actions hereunder, including the timing, form, amount or recipient of any payment to be
made hereunder, shall be binding and conclusive on all persons for all purposes. The Board may
delegate any of its powers, authorities, or responsibilities for the operation and administration
of the Plan to any person or committee so designated in writing by it and may employ such
attorneys, agents, and accountants as it may deem necessary or advisable to assist it in carrying
out its duties hereunder. No member of the Board shall be liable to any person for any action
taken or omitted in connection with the interpretation and administration of the Plan unless
attributable to his own willful misconduct or lack of good faith. Members of the Board shall not
participate in any action or determination regarding their own benefits, if any, payable under the
Plan.

     7.3 Indemnification. In addition to whatever rights of indemnification a member of
the Board, or any other person or persons to whom any power, authority, or responsibility is
delegated pursuant to Section 7.2, may be entitled under the articles of incorporation,
regulations, or by-laws of the Company, under any provision of law, or under any other agreement,
the Company shall satisfy any liability actually and reasonably incurred by any such

10

 

member or
other
person or persons, including expenses, attorneys’ fees, judgments, fines, and amounts paid in
settlement, in connection with any threatened, pending, or completed action, suit, or proceeding
which is related to the exercise or failure to exercise by such member or such other person or
persons of any of the powers, authority, responsibilities, or discretion provided under the Plan.

ARTICLE VIII

AMENDMENT AND TERMINATION

     The Company reserves the right to amend or terminate the Plan at any time by action of
the Board; provided, however, that no such action shall adversely affect any Participant who is
receiving supplemental benefits under the Plan or whose Separate Accounts are credited with any
contributions thereto, unless an equivalent benefit is provided under another plan or program
sponsored by the Employer.

ARTICLE IX

ADOPTION BY SUBSIDIARIES

     Any subsidiary of the Company which is not the Employer may, with the consent of the
Company, adopt the Plan and become the Employer hereunder by causing an appropriate written
instrument evidencing such adoption to be executed pursuant to the authority of its Board of
Directors and filed with the Company.

ARTICLE X

MISCELLANEOUS

     10.1 Non-Alienation of Benefits. No benefit under the Plan shall at any time be
subject in any manner to alienation or encumbrance. If any Participant or Beneficiary shall
attempt to, or shall, alienate or in any way encumber his benefits under the Plan, or any part

11

 

thereof, or if by reason of his bankruptcy or other event happening at any time any such benefits
would otherwise be received by anyone else or would not be enjoyed by him, his interest in all
such benefits shall automatically terminate and the same shall be held or applied to or for the
benefit of such person, his spouse, children or other dependents as the Board may select. As a
result of this provision, a Participant may not borrow money from the Plan or otherwise pledge his
benefits under the Plan as collateral for a loan.

     10.2 Payment of Benefits to Others. If any Participant or Beneficiary to whom a
benefit is payable is unable to care for his affairs because of illness or accident, any payment
due (unless prior claim therefor shall have been made by a duly qualified guardian or other legal
representative) may be paid to the spouse, parent, brother, or sister, or any other individual
deemed by the Board to be maintaining or responsible for the maintenance of such person. Any
payment made in accordance with the provisions of this Section 10.2 shall be a complete discharge
of any liability of the Plan with respect to the benefit so paid.

     10.3 Plan Non-Contractual. Nothing herein contained shall be construed as a
commitment or agreement on the part of any person employed by the Employer to continue his
employment with the Employer, and nothing herein contained shall be construed as a commitment on
the part of the Employer to continue the employment or the annual rate of compensation of any such
person for any period, and all Participants shall remain subject to discharge to the same extent as
if the Plan had never been established.

     10.4 Funding. In order to provide a source of payment for its obligations under the
Plan, the Company may establish a trust fund. Subject to the provisions of the trust agreement

12

 

governing such trust fund, the obligation of the Employer under the Plan to provide a Participant
or a Beneficiary with a benefit constitutes the unsecured promise of such Employer to make
payments as provided herein, and no person shall have any interest in, or a lien or prior claim
upon, any property of the Employer.

     10.5 Controlling Status. No participant shall be eligible for a benefit under the
Plan unless such Participant is a Participant on the date of his retirement, death, or other
termination of employment.

     10.6 Claims of Other Persons. The provisions of the Plan shall in no event be
construed as giving any person, firm or corporation any legal or equitable right as against the
Employer, its officers, employees or directors except any such rights as are specifically provided
for in the Plan or are hereafter created in accordance with the terms and provisions of the Plan.

     10.7 Severability. The invalidity or unenforceability of any particular provision of
the Plan shall not affect any other provision hereof, and the Plan shall be construed in all
respects as if such invalid or unenforceable provision were omitted herefrom.

     10.8 Governing Law. The provisions of the Plan shall be governed and construed in
accordance with the laws of the State of Illinois.

     Effective as of September 1, 1998 and executed at Quincy, Illinois this ___ day of
                    , 2000.

	 	 	 	 	 
	 	GARDNER DENVER, INC.

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

13

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