Document:

EXECUTION COPY 

AMENDMENT NO. 3 
TO

SECOND AMENDED AND
RESTATED CREDIT AGREEMENT 

This AMENDMENT NO. 3 TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) dated as of June 2, 2016 is among Meritor, Inc., an Indiana
corporation (the “Company”), ArvinMeritor
Finance Ireland, a company organized under the laws of Ireland (the
“Subsidiary
Borrower” and, collectively with
the Company, the “Borrowers”), the financial
institutions listed on the signature pages hereto and JPMorgan Chase Bank, N.A.,
in its capacity as administrative agent for itself and the other Lenders (in
such capacity, the “Administrative
Agent”). Defined terms used
herein and not otherwise defined herein shall have the meanings given to them in
the “Credit Agreement” referred to below. 

WHEREAS, the signatories
hereto are parties to that certain Second Amended and Restated Credit Agreement,
dated as of February 13, 2014 (as amended by Amendment No. 1 thereto, dated as
of September 12, 2014 and by Amendment No. 2 thereto dated as of May 22, 2015,
and as the same may be further amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among
the Borrowers, the financial institutions from time to time parties thereto as
lenders (the “Lenders”) and the
Administrative Agent;

WHEREAS, the Borrowers wish
to amend the Credit Agreement in certain respects, and the Lenders and the
Administrative Agent are willing to amend the Credit Agreement (including to
increase the Aggregate 2019 Revolving Loan Commitment and to allow for the
conversion of 2017 Revolving Loan Commitments to 2019 Revolving Loan
Commitments) on the terms and conditions set forth herein; and 

WHEREAS, the Borrowers wish
to obtain the consent of the Lenders to the release of ArvinMeritor Sweden AB, a
company organized under the laws of Sweden (“ArvinMeritor Sweden”), and Arvin European Holdings (UK) Limited, a
company organized under the laws of the United Kingdom  (“Arvin UK”; ArvinMeritor Sweden and Arvin UK being referred to collectively as the
“Released Foreign Subsidiary Guarantors”) from their Subsidiary Guarantees in connection with and upon the
occurrence of certain internal corporate restructuring transactions permitted
under the Credit Agreement, and the Administrative Agent and the Required
Lenders are willing to grant such releases on the terms and conditions set forth
herein. 

NOW, THEREFORE, in
consideration of the premises set forth above, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Borrowers, the Lenders party hereto and the Administrative Agent agree as
follows: 

1. Amendments to Credit
Agreement. Upon and subject to
the satisfaction of the conditions precedent set forth in Section 4 below, the Credit Agreement shall be and hereby is amended as follows:

(a) Section
1.1 of the Credit Agreement is
hereby amended to insert the following definitions in the appropriate
alphabetical order: 

“Amendment No. 3
Effective Date” means
June 2, 2016. 

“Bail-In
Action” means the
exercise of any Write-Down and Conversion Powers by the applicable EEA
Resolution Authority in respect of any liability of an EEA Financial
Institution.

“Bail-In
Legislation” means,
with respect to any EEA Member Country implementing Article 55 of Directive
2014/59/EU of the European Parliament and of the Council of the European Union,
the implementing law for such EEA Member Country from time to time which is
described in the EU Bail-In Legislation Schedule.

“Canadian Tax
Restructuring” is
defined in Section
7.5 hereof.

“Conversion” is
defined in Section
2.25 hereof.

“Conversion
Confirmation” is
defined in Section
2.25 hereof.

“Conversion
Date” is defined
in Section
2.25 hereof.

“Converting
Lender” is defined
in Section
2.25 hereof.

“EEA Financial
Institution” means (a)
any credit institution or investment firm established in any EEA Member Country
which is subject to the supervision of an EEA Resolution Authority, (b) any
entity established in an EEA Member Country which is a parent of an institution
described in clause (a) of this definition, or (c) any financial institution
established in an EEA Member Country which is a subsidiary of an institution
described in clauses (a) or (b) of this definition and is subject to
consolidated supervision with its parent.

“EEA Member
Country” means any of
the member states of the European Union, Iceland, Liechtenstein, and
Norway.

“EEA Resolution
Authority” means any
public administrative authority or any Person entrusted with public
administrative authority of any EEA Member Country (including any delegee)
having responsibility for the resolution of any EEA Financial
Institution.

“EU Bail-In
Legislation Schedule”
means the EU Bail-In Legislation Schedule published by the Loan Market
Association (or any successor person), as in effect from time to
time.

“Write-Down and
Conversion Powers”
means, with respect to any EEA Resolution Authority, the write-down and
conversion powers of such EEA Resolution Authority from time to time under the
Bail-In Legislation for the applicable EEA Member Country, which write-down and
conversion powers are described in the EU Bail-In Legislation
Schedule.

(b) The following definitions
included in Section 1.1
of the Credit Agreement are hereby amended
and restated in their entirety as follows:

“Aggregate 2017
Revolving Loan Commitment” means the aggregate of the 2017 Revolving Loan Commitments then in
effect of all the 2017 Revolving Loan Lenders, as the same may be reduced or
increased from time to time pursuant to the terms hereof. As of the Amendment
No. 3 Effective Date, after giving effect to the transactions contemplated by
the Second Amendment and Restatement Agreement, the Aggregate 2017 Revolving
Loan Commitment is $40,291,262.14.

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“Aggregate 2019
Revolving Loan Commitment” means the aggregate of the 2019 Revolving Loan Commitments then in
effect of all the 2019 Revolving Loan Lenders, as the same may be reduced or
increased from time to time pursuant to the terms hereof. As of the Amendment
No. 3 Effective Date, after giving effect to the transactions contemplated by
the Second Amendment and Restatement Agreement, the Aggregate 2019 Revolving
Loan Commitment is $465,332,038.55.

“Change in
Control” means (a) any
“Change of Control” (or similar term) under and as defined in, or within the
meaning of, any Senior Note Indenture (including any supplement thereto) or with
respect to any series of Senior Notes, and for any use or purpose in such Senior
Note Indenture or Senior Notes or (b) any event or series of events by
which:

(i) any “person” or
“group” (within the meaning of Sections 13(d) and 14(d)(2) of the Securities
Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Securities Exchange Act), directly or indirectly, of thirty-five percent (35%)
or more of the voting power of the then outstanding Capital Stock of the Company
entitled to vote generally in the election of the directors of the
Company; or

(ii) the Company
consolidates with or merges into another corporation or conveys, transfers or
leases all or substantially all of its property to any person, or any
corporation consolidates with or merges into the Company, in either event
pursuant to a transaction in which the outstanding Capital Stock of the Company
is reclassified or changed into or exchanged for cash, securities or other
Property.

“Defaulting
Lender” means any Lender that (a) has failed, within two
(2) Business Days of the date required to be funded or paid, to (i) fund any
portion of its Loans, (ii) fund any portion of its participations in Letters of
Credit or Swing Line Loans or (iii) pay over to any Credit Party any other
amount required to be paid by it hereunder, unless, in the case of clause (i)
above, such Lender notifies the Administrative Agent in writing that such
failure is the result of such Lender’s good faith determination that a condition
precedent to funding (specifically identified and including the particular
default, if any) has not been satisfied, (b) has notified the Company or any
Credit Party in writing, or has made a public statement to the effect, that it
does not intend or expect to comply with any of its funding obligations under
this Agreement (unless such writing or public statement indicates that such
position is based on such Lender’s good faith determination that a condition
precedent (specifically identified and including the particular default, if any)
to funding a loan under this Agreement cannot be satisfied) or generally under
other agreements in which it commits to extend credit, (c) has failed, within
three (3) Business Days after written request by a Credit Party, acting in good
faith, to provide a certification in writing from an authorized officer of such
Lender that it will comply with its obligations to fund prospective Loans and
participations in then outstanding Letters of Credit and Swing Line Loans under
this Agreement, provided that such Lender shall cease to be a Defaulting Lender
pursuant to this clause (c) upon such Credit Party’s receipt of such
certification in form and substance reasonably satisfactory to it and the
Administrative Agent, (d) has become the subject of a Bankruptcy Event or (e)
has (or whose direct or indirect parent company has) become the subject of a
Bail-In Action.

“Foreign
Reinvestment Amount”
means, at any time, an amount equal to the proceeds of sales of Capital Stock
of, or assets of, Foreign Subsidiaries that are not Loan Parties occurring after
the Amendment No. 3 Effective Date that have been distributed to or otherwise
received by a Loan Party.

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(c) Clause (iii) of the
definition of “Indebtedness” appearing in Section 1.1 of the Credit
Agreement is hereby amended and restated in its entirety as follows:

(iii) obligations,
whether or not assumed, of others secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by)
Liens on property now or hereafter owned or acquired by such Person or payable
out of the proceeds or production from Property now or hereafter owned or
acquired by such Person (other than any Hedging Obligations that constitute
Secured Obligations).

(d) The Credit Agreement is
hereby amended to add the following new Section 2.25 thereto:

Section 2.25.
Conversion of 2017 Revolving Credit
Commitments into 2019 Revolving Loan
Commitments.

(A) At any time during
the term of this Agreement, any 2017 Revolving Loan Lender (in such capacity, a
“Converting
Lender”) can make an
election to recharacterize and reevidence all or any portion of its 2017
Revolving Loans and 2017 Revolving Loan Commitment as 2019 Revolving Loans and a
2019 Revolving Loan Commitment, respectively, for all purposes of the Credit
Agreement (any such recharacterization, a “Conversion”), whereupon:

(i) the Converting Lender
shall no longer constitute a 2017 Revolving Loan Lender to the extent of the
converted amount and shall become or continue to be a 2019 Revolving Loan Lender
with a new or increased 2019 Revolving Loan Commitment, as applicable, with all
of the rights and obligations of a 2019 Revolving Loan Lender under the Loan
Documents to the full extent of such new or increased 2019 Revolving Loan
Commitment (including, without limitation, the obligation to assume its
respective 2019 Revolving Pro Rata Share of participation interests in Swing
Line Loans and Letters of Credit); and

(ii) upon such Conversion Date,
(a) the existing Aggregate 2019 Revolving Loan Commitment shall be increased by
the aggregate amount of the converted 2017 Revolving Loan Commitment of the
Converting Lender with such increase being allocated solely to such Converting
Lender, and (b) in accordance with Section 2.24 of the
Credit Agreement, the existing Aggregate 2017 Revolving Loan Commitment shall be
reduced by the aggregate amount of the converted 2017 Revolving Loan Commitment
of such Converting Lender, with such reduction being allocated solely to such
Converting Lender.

(B) Any request for a
Conversion as described herein shall be made in a written notice given to the
Administrative Agent and the Lenders by the Company not less than five (5)
Business Days prior to the proposed Conversion Date, which notice shall specify
the amount of the proposed Conversion and the proposed Conversion
Date.

(C) The effectiveness of
any Conversion shall be subject to the following conditions
precedent:

(i) As of the effective
date of the applicable Conversion (a “Conversion Date”), (a) all representations and warranties
under Article
VI and in the other Loan
Documents shall be true and correct in all material respects as though made on
such date (unless such representation and warranty is made as of a specific
date, in which case, such representation and warranty shall be true and correct
in all material respects as of such date) and (b)
no event shall have occurred and then be continuing which constitutes a Default
or Unmatured Default;

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(ii) the Borrowers, the
Administrative Agent and each Converting Lender shall have executed and
delivered a confirmation of such Conversion substantially in the form
of Exhibit J
hereto (a “Conversion Confirmation”); and

(iii) the Borrowers, the
Subsidiary Guarantors and each Converting Lender shall otherwise have executed
and delivered such other instruments and documents, if any, as the
Administrative Agent or such Converting Lender shall have reasonably requested
in connection with such Conversion.

(D) The Administrative
Agent shall be permitted to make such reallocations, if any, of each Lender’s
2019 Revolving Loans and participations in outstanding Swing Line Loans and
Letters of Credit among the 2019 Revolving Loan Lenders as are necessary in
order to reflect such Lender’s 2019 Revolving Pro Rata Share of such amounts
under the Credit Agreement after giving effect to a Conversion. The Borrower
hereby agrees to compensate each Lender for any and all losses, costs and
expenses incurred by such Lender in connection with the sale and assignment of
any Eurocurrency Rate Loans and the reallocation described in this
Section 2.25(D) in each
case on the terms and in the manner set forth in Section 4.4 of the Credit Agreement.

(e) The Credit Agreement is
hereby amended to add the following new Section 6.25 thereto:

Section 6.25.
EEA Financial
Institution. No Loan Party is an EEA Financial
Institution.

(f) Section
7.3(A)(x) of the Credit Agreement
is hereby amended and restated in its entirety as follows:

(x) Unsecured
Indebtedness of the Company or any Domestic Subsidiary Guarantor not otherwise
permitted under this Section 7.3(A) in
an aggregate outstanding principal amount not to exceed (A) $40,000,000 during
the period from and after the Restatement Effective Date until the Amendment No.
3 Effective Date and (B) $200,000,000 (the amount in this clause (B), the
“Unsecured Basket Base
Amount”)
at any time from and after the Amendment
No. 3 Effective Date so long as, subject to the second proviso below, such
Indebtedness described in clause (A) and (B) has a maturity date not sooner than
six months after the later of (x) the latest Termination Date and (y) the latest
Term Loan Maturity Date (or any later maturity date then in effect with respect
to the Loans); provided, that
Indebtedness in an amount in excess of the Unsecured Basket Base Amount (subject
to the aforementioned limitations on maturity) may be incurred if, not less than
five (5) Business Days prior to such incurrence, the Company shall deliver to
the Administrative Agent and the Lenders a certificate from a Designated
Financial Officer demonstrating to the reasonable satisfaction of the
Administrative Agent that after giving effect to such incurrence, on
a pro
forma basis acceptable to the Administrative Agent, as
if such incurrence had occurred on the first day of the twelve-month period
ending on the last day of the Company’s most recently completed fiscal quarter
for which financial statements are publicly available, the Interest Coverage
Ratio as of the end of such fiscal quarter was equal to or greater than
2.00:1.00; provided, further, that the
limitations on maturity set forth above shall not apply to up to $25,000,000 of
Indebtedness in existence at any time that has been incurred pursuant to
this Section
7.3(A)(x).

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(g) Section
7.3(B)(i) of the Credit Agreement
is hereby amended and restated in its entirety as follows:

(i) Any Subsidiary may
merge or consolidate with the Company (provided, that the Company shall be the surviving
corporation), with the Subsidiary Borrower (provided, that such Subsidiary Borrower shall be the
surviving entity) or with one or more other Subsidiaries (provided, that in the case of any such merger or
consolidation involving any Subsidiary Guarantor, the surviving entity shall be
such Subsidiary Guarantor, except that in the case of the merger of ArvinMeritor
Sweden AB with and into Meritor HVS AB, Meritor HVS AB may be the surviving
entity);

(h) Section 7.3(E)
of the Credit Agreement is hereby amended as
follows:

(i) to amend and restate clause
(ii)(e) thereof in its entirety as follows:

(e) Investments by any
Loan Party in Foreign Subsidiaries that are not Loan Parties made (x) during the
period from and after the Restatement Effective Date until the Amendment No. 3
Effective Date in an aggregate amount of $5,000,000 and (y) from and after the
Amendment No. 3 Effective Date in an outstanding amount not to exceed at any
time the sum of (1) $250,000,000 plus (2) the Foreign Reinvestment Amount at
such time;

and

(ii) to amend and restate clause
(viii) thereof in its entirety as follows:

(viii) Investments
(other than any Investment of a type described in the foregoing clauses (i)-(vii)) made (x)
during the period from and after the Restatement Effective Date until the
Amendment No. 3 Effective Date in an aggregate amount of $48,000,000 and (y)
from and after the Amendment No. 3 Effective Date in an aggregate amount not to
exceed $200,000,000 at any time.

(i) Section
7.3(G)(v) of the Credit Agreement
is hereby amended and restated in its entirety as follows:

(v) (x) the aggregate
consideration for all Acquisitions completed during the period from and after
the Restatement Effective Date until the Amendment No. 3 Effective Date shall
not exceed $17,000,000, and (y) the aggregate consideration for any Acquisition
completed after the Amendment No. 3 Effective Date, in the aggregate with the
consideration for all other Acquisitions consummated from and after the
Amendment No. 3 Effective Date, shall not exceed the sum of (i) $100,000,000
plus (ii) an amount equal to the net cash proceeds received by the Company or
any Domestic Subsidiary on or after the Amendment No. 3 Effective Date from the
divestiture of the equity interest in, or assets of, any Foreign
Subsidiary.

(j) The Credit Agreement is
hereby amended to add the following new Section 7.5 thereto:

Section 7.5.
Canadian Tax
Restructuring.
Notwithstanding anything to the contrary in this Article VII, the Company and its Subsidiaries may consummate
the internal restructuring (the “Canadian Tax Restructuring”) of certain Domestic Subsidiaries and certain Foreign Subsidiaries
organized in Canada, France and the United Kingdom, in accordance with the steps
set forth on Schedule
7.5 hereto, and any
non-material deviations from such steps so long as the Company delivers such
Loan Documents, as are reasonably required by the Loan Documents
in order to comply with
this Agreement. For purposes of this Section 7.5, a “non-material” step or deviation shall mean
any step or deviation, as reasonably determined by the Administrative Agent and
the Company, from the steps outlined in Schedule 7.5 hereto, that does not reduce the amount of
security or recourse provided to the Lenders under the Loan Documents. In no
event shall such Canadian Tax Restructuring, if completed as described in
this Section
7.5, be deemed to
constitute a Default or Unmatured Default.

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(k) The Credit Agreement is
hereby amended to add the following new Section 10.16 thereto:

Section
10.16. Acknowledgment and
Consent to Bail-In of EEA Financial Institutions

Notwithstanding anything
to the contrary in any Loan Document or in any other agreement, arrangement or
understanding among any such parties thereto, each party hereto acknowledges
that any liability of any EEA Financial Institution arising under any Loan
Document, to the extent such liability is unsecured, may be subject to the
Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and
consents to, and acknowledges and agrees to be bound by:

(A) the application of
any Write-Down and Conversion Powers by an EEA Resolution Authority to any such
liabilities arising hereunder which may be payable to it by any party hereto
that is an EEA Financial Institution; and

(B) the effects of any Bail-in
Action on any such liability, including, if applicable:

(i) a reduction in full
or in part or cancellation of any such liability;

(ii) a conversion of
all, or a portion of, such liability into shares or other instruments of
ownership in such EEA Financial Institution, its parent undertaking, or a bridge
institution that may be issued to it or otherwise conferred on it, and that such
shares or other instruments of ownership will be accepted by it in lieu of any
rights with respect to any such liability under this Agreement or any other Loan
Document; or

(iii)
the variation of the terms of such liability in
connection with the exercise of the Write-Down and Conversion Powers of any EEA
Resolution Authority.

(l) Exhibit A-1 (2017 Revolving Loan Commitments) and Exhibit A-2 (2019 Revolving Loan Commitments) are hereby
amended and restated in their entirety to read as set forth in Annex I hereto to reflect the increase to the 2019 Aggregate Revolving Loan
Commitment described in Section
2 below on the effective date
hereof.

(m) The Credit Agreement shall be
amended to add a new Exhibit
J (Conversion Confirmation) in
the form attached as Annex
II hereto 

(n) The Credit Agreement shall be
amended to add a new Schedule
7.5 (Canadian Tax Restructuring)
in the form attached as Annex
III hereto.

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2. Increase to 2019 Aggregate
Revolving Loan Commitment.
Pursuant to Section
2.23 of the Credit Agreement, the
Company has requested an increase in the Aggregate 2019 Revolving Loan
Commitment from $458,681,553.11 to $465,332,038.55, upon the effectiveness
hereof. In connection with such requested
Commitment Increase, the Company, the Administrative Agent and BNP Paribas (the
“Accepting Lender”) hereby agree that upon the effectiveness
hereof, the 2019 Revolving Loan Commitment of the Accepting Lender under the
Credit Agreement shall be increased from $43,349,514.56 to $50,000,000. The
Required Lenders hereby agree to waive the minimum amount and multiples
requirements set forth in Section
2.23(B) of the Credit Agreement,
and also agree that this Amendment shall be delivered in substitution for any
Increase Notice and Commitment and Acceptance required by Section 2.23 of the Credit Agreement (after giving effect to
this Amendment).

3. Release of Subsidiary
Guarantors.

(a) Subject to the satisfaction
of the conditions precedent set forth in Section 4 below, pursuant
to the authority granted to the Administrative Agent under Section 11.15(B)(iv) of the Credit Agreement, the Administrative Agent,
on behalf of the Holders of Secured Obligations, agrees that (i) effective upon
the merger of ArvinMeritor Sweden with and into Meritor HVS AB, with Meritor HVS
AB as the surviving entity, ArvinMeritor Sweden shall be automatically released
as a “Guarantor” under the Subsidiary Guaranty to which it is a party and all
obligations of ArvinMeritor Sweden under such Subsidiary Guaranty shall be
terminated and (ii) as and when required by the Canadian Tax Restructuring,
Arvin UK shall be automatically released as a “Guarantor” under the Subsidiary
Guaranty to which it is a party and all obligations of Arvin UK under such
Subsidiary Guaranty shall be terminated.

(b) The Administrative Agent’s
Liens on the Applicable Pledge Percentage of the Capital Stock of the applicable
Released Foreign Subsidiary Guarantor shall be automatically released at such
time as such Released Foreign Subsidiary Guarantor no longer constitutes a
Pledge Subsidiary (including if maintaining such security interest and liens
would result in a Deemed Dividend Problem); provided that the Company shall
comply with Section
7.2(L) of the Credit Agreement
and the Collateral Documents with respect to any new Pledge Subsidiary after
giving effect to the applicable transactions described in Section 3(a) of this Amendment.

4. Conditions Precedent to
Amendment. This Amendment shall
become effective as of the date first above written if, and only if on such
date:

(a) The Administrative Agent has
received duly executed copies of this Amendment from the Borrowers, the Required
Lenders, BNP Paribas and the Administrative Agent.

(b) The Administrative Agent has
received duly executed copies of the Consent and Reaffirmation attached hereto
from each Subsidiary Guarantor.

(c) The Administrative Agent
shall have received favorable written opinions (addressed to the Administrative
Agent and the Lenders and dated the effective date hereof) of (i) the U.S.
counsels to the Company and the Subsidiary Guarantors, (ii) the Irish counsel to
the Subsidiary Borrower and (iii) the foreign local counsel of each Foreign
Subsidiary Guarantor, in each case in form and substance reasonably satisfactory
to the Administrative Agent and covering such matters relating to the Loan
Parties, the Loan Documents, this Agreement and the transactions contemplated
hereby as the Administrative Agent shall reasonably request. The Borrowers
hereby request such counsel to deliver such opinion.

(d) The Administrative Agent
shall have received such documents and certificates as the Administrative Agent
or its counsel may reasonably request, including without limitation documents
and certificates relating to the organization, existence and good standing of
the Loan Parties and the authorization of this Agreement and the transactions
contemplated hereby and any other legal matters relating to the Loan
Parties, the Loan Documents or this Agreement and the transactions contemplated
hereby, all in form and substance reasonably satisfactory to the Administrative
Agent and its counsel.

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(e) The representations and
warranties of the Loan Parties set forth in the Loan Documents shall be true and
correct in all material respects as of the date hereof, except to the extent
such representations and warranties expressly relate to an earlier date, in
which case such representations and warranties shall be true and correct in all
material respects as of such earlier date, no Unmatured Default or Default shall
have occurred and be continuing as of the date hereof, and the Administrative
Agent shall have received a certificate, dated as of the date hereof and signed
by the president, a vice president or a financial officer of the Company,
confirming the foregoing.

(f) The Administrative Agent
shall have received a certificate, dated as of the date hereof, of a Designated
Financial Officer of the Company demonstrating to the satisfaction of the
Administrative Agent (i) a computation of Collateral Value Amount as of the most
recently completed fiscal quarter for which financial statements are available
and (ii) that the Collateral Value Amount as of such date shall be greater than
the Facility Obligations Amount (after giving effect to the transactions
contemplated hereby).

(g) The Company shall have paid
all fees and expenses (including, to the extent invoiced, reimbursement of fees
and expenses of the Administrative Agent’s counsels) in connection with this
Amendment and the other Loan Documents.

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

(a) Each Borrower has the
corporate or other power and authority and legal right to execute and deliver
this Amendment and to perform its obligations hereunder and under the Credit
Agreement (as amended hereby). The execution and delivery by each Borrower of
this Amendment, and the performance of its obligations under this Amendment and
the Credit Agreement (as amended hereby), have been duly authorized by proper
corporate acts (or analogous acts in the case of the Subsidiary
Borrower).

(b) This Amendment and the Credit
Agreement (as amended hereby) constitute the legal, valid and binding
obligations of each Borrower enforceable against such Borrower in accordance
with their terms, except as such enforceability may be limited by bankruptcy,
insolvency, or similar laws affecting the enforcement of creditors’ rights
generally.

(c) Neither the execution and
delivery by the Borrowers of this Amendment, nor the consummation of the
transactions contemplated herein and in the Credit Agreement (as amended
hereby), nor compliance with the provisions hereof or thereof will violate any
law, rule, regulation, order, writ, judgment, injunction, decree or award
binding on the Company or any of its Subsidiaries or the Company’s or any
Subsidiary’s articles of incorporation or by-laws or comparable constitutive
documents or the provisions of any indenture, instrument or agreement to which
the Company or any of its Subsidiaries is a party or is subject, or by which it,
or its Property, is bound, or conflict with or constitute a default thereunder,
or result in the creation or imposition of any Lien (other than any Lien
permitted by Section
7.3(F) of the Credit Agreement)
in, of or on the Property of the Company or a Subsidiary pursuant to the terms
of any such indenture, instrument or agreement, except any such violation,
conflict or default as would not reasonably be expected to have a Material
Adverse Effect. No order, consent, approval, license, authorization, or
validation of, or filing, recording or registration with, or exemption by, any
Governmental Authority, or any other third party, is required to authorize, or
is required in connection with the execution or delivery of this Amendment or
the performance of, or the legality, validity, binding effect or
enforceability of, this Amendment or the Credit Agreement (as amended
hereby).

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(d) As of the date hereof and
after giving effect to the terms of this Amendment, (i) each representation and
warranty by each Borrower set forth in the Credit Agreement (as amended hereby)
and in the other Loan Documents to which such Borrower is a party is true and
correct in all material respects, except to the extent that such representation
or warranty expressly relates to an earlier date (in which case such
representation and warranty shall be true and correct as of such earlier date)
and (ii) no Default or Unmatured Default exists under the terms of the Credit
Agreement (as amended hereby).

6. Reference to and Effect on
the Credit Agreement.

(a) Upon the effectiveness
hereof, each reference in the Credit Agreement to “this Credit Agreement,”
“hereunder,” “hereof,” “herein” or words of like import shall mean and be a
reference to the Credit Agreement, as amended hereby. This Amendment is a Loan
Document pursuant to the Credit Agreement and shall (unless expressly indicated
herein or therein) be construed, administered, and applied, in accordance with
all of the terms and provisions of the Credit Agreement.

(b) Except as specifically
amended above, the Credit Agreement and all other documents, instruments and
agreements executed and/or delivered in connection therewith, shall remain in
full force and effect, and are hereby ratified and confirmed. Without limiting
the foregoing, each Borrower hereby (i) agrees that this Amendment and the
transactions contemplated hereby shall not limit or diminish the obligations of
such Borrower arising under or pursuant to the Credit Agreement and the other
Loan Documents to which it is a party, (ii) reaffirms its obligations under the
Credit Agreement and each and every other Loan Document to which it is a party
(including, without limitation, each applicable Collateral Document) and (iii)
reaffirms all Liens on the Collateral which have been granted by it in favor of
the Administrative Agent (for itself and the other Holders of Secured
Obligations) pursuant to any of the Loan Documents.

(c) Except as expressly provided
herein, the execution, delivery and effectiveness of this Amendment (or any
provision hereof) shall not operate as a waiver of any right, power or remedy of
the Administrative Agent or the Lenders, nor constitute a waiver of any
provision of the Credit Agreement or any other documents, instruments and
agreements executed and/or delivered in connection therewith.

7. GOVERNING
LAW. THIS AMENDMENT SHALL
BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

8. Headings. Section headings in this Amendment are included
herein for convenience of reference only and shall not constitute a part of this
Amendment for any other purpose.

9. Counterparts. This
Amendment may be executed by one or more of the parties hereto on any number of
separate counterparts and all of said counterparts taken together shall be
deemed to constitute one and the same instrument. Delivery of an executed
counterpart of a signature page of this Amendment by facsimile or e-mail
transmission shall be effective as delivery of a manually executed counterpart
of this Amendment.

10. Successors and
Assigns. This Amendment and the
rights evidenced hereby shall inure to the benefit of and be binding upon the
permitted successors and assigns of the parties hereto, and shall be enforceable
by any such successors and assigns.

10

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

	MERITOR, INC.,
      as a Borrower
	  
	  
	By:
       	  /s/ Carl D. Anderson,
      II 
	Name: Carl D. Anderson, II
	Title: Vice President and
Treasurer
	  
	  
	ARVINMERITOR FINANCE IRELAND,
	as a
      Borrower
	  
	  
	By:
      	  /s/ Todd
    Chirillo 
	Name: Todd Chirillo
	Title:
Director

Amendment No. 3 to Second Amended and Restated Credit Agreement

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

Amendment No. 3 to Second Amended and Restated Credit Agreement

	Citicorp North America Inc., as
      a Lender
	 
	 
	By: 	  /s/ Sarah
    Terner 
	Name: Sarah Terner
	Title: Vice
  President

  

Amendment No. 3 to Second Amended and Restated Credit Agreement

	Bank of
      America, N.A., as a Lender
	 
	 
	By: 	  /s/ Brian Lukehart
	Name: Brian Lukehart
	Title:
  Director

    

Amendment No. 3 to Second Amended and Restated Credit Agreement

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

      

Amendment No. 3 to Second Amended and Restated Credit Agreement

	The Royal
      Bank of Scotland plc, as a Lender
	 
	 
	By: 	  /s/ Tyler J. McCarthy
	Name: Tyler J.
  McCarthy
	Title:
  Director

        

Amendment No. 3 to Second Amended and Restated Credit Agreement

	Lloyds Bank plc, as
      a Lender
	 
	 
	By:	  /s/ Daven
      Popat
	Name:	Daven Popat 
	Title:	Senior Vice President
		Transaction Execution
		Category A
		P003
	 
	By: 	  /s/ Dennis
      McClellan
	Name: 	Dennis McClellan 
	Title:	Assistant Vice President
		M040

    

Amendment No. 3 to Second Amended and Restated Credit Agreement

	BNP Paribas, as a Lender
	 
	 
	By:
        	  /s/ Todd
      Grossnickle
	Name: Todd Grossnickle
	Title: Director
	 
	 
	By:	  /s/ Nader
      Tannous
	Name: Nader Tannous
	Title: Managing Director

    

Amendment No. 3 to Second Amended and Restated Credit Agreement

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

    

Amendment No. 3 to Second Amended and Restated Credit Agreement

	Fifth Third Bank, as a Lender
	  
	   
	By:  	  /s/ Randal
      Wolffis
	Name: Randal Wolffis
	Title: Vice President

    

Amendment No. 3 to Second Amended and Restated Credit Agreement

	Comerica Bank, as a Lender
	 
	 
	By:  	  /s/ Nicole
      Swigert
	Name: Nicole Swigert
	Title: Vice President

    

Amendment No. 3 to Second Amended and Restated Credit Agreement

	The Huntington National Bank, as a Lender
	  
	  
	By:  	  /s/ Dan
      Swanson
	Name: Dan Swanson
	Title: Assistant Vice
President

    

Amendment No. 3 to Second Amended and Restated Credit Agreement

	Citizens Bank, N.A., as a Lender
	  
	  
	By:  	  /s/ Stephen A.
      Maenhout
	Name: Stephen A. Maenhout
	Title: Senior Vice
President

    

Amendment No. 3 to Second Amended and Restated Credit Agreement

	CAPITAL ONE LEVERAGE FINANCE
      CORP.,
	as a Lender
	 
	 
	By:  	  /s/ Gina
      Monette 
	Name: Gina Monette
	Title: Vice President

Amendment No. 3 to Second Amended and Restated Credit Agreement

Consent and
Reaffirmation 

dated as of June 2, 2016

Each of the undersigned
hereby acknowledges receipt of a copy of Amendment No. 3, dated as of June 2,
2016 (the “Amendment”), to that
certain Second Amended and Restated Credit Agreement, dated as of February 13,
2014 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit
Agreement”), among Meritor, Inc.,
an Indiana corporation (the “Company”), ArvinMeritor
Finance Ireland, the financial institutions from time to time parties thereto as
lenders (the “Lenders”) and JPMorgan
Chase Bank, N.A., as Administrative Agent (in such capacity, the
“Administrative
Agent”). Capitalized terms used
herein without definition shall have the meanings assigned to such terms in the
Credit Agreement.

Without in any way
establishing a course of dealing by the Administrative Agent or any Lender, each
of the undersigned Subsidiary Guarantors (including as successors by merger or
otherwise) hereby (i) agrees that the Amendment and the transactions
contemplated thereby (including, without limitation, the release of certain
Subsidiary Guarantors) shall not limit or diminish the obligations of such
Person arising under or pursuant to the Subsidiary Guaranty and the other Loan
Documents to which it is a party, (ii) reaffirms its obligations under the
Subsidiary Guaranty and each and every other Loan Document to which it is a
party (including, without limitation, each applicable Collateral Document), and
(iii) reaffirms all Liens on the Collateral which have been granted by it in
favor of the Administrative Agent (for itself and the other Holders of Secured
Obligations) pursuant to any of the Loan Documents.

Each Subsidiary Guarantor
hereby makes each of the representations and warranties of the Borrowers set
forth in Section 5 of the Amendment, mutatis mutandis, as
though such representations and warranties were applicable to such Subsidiary
Guarantor, this Reaffirmation and Consent and the Loan Documents to which such
Subsidiary Guarantor is a party (after giving effect to the Amendment and this
Reaffirmation and Consent). 

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, restated or otherwise
modified.

IN WITNESS WHEREOF, this
Consent and Reaffirmation has been duly executed and delivered as of the date
first above written.

	 	MERITOR
      MANAGEMENT CORP.
	 	MERITOR
      INTERNATIONAL HOLDINGS, LLC
	 	ARVIN
      TECHNOLOGIES, INC.
	 	ARVINMERITOR
      BRAKE HOLDINGS, LLC
	 	ARVINMERITOR
      FILTERS OPERATING CO., LLC
	 	MERITOR
      HOLDINGS, LLC
	 	ARVINMERITOR
      OE, LLC
	 	ARVINMERITOR
      TECHNOLOGY, LLC
	 	ARVINMERITOR, INC.
	 	AVM,
      INC.
	 	MAREMONT
      CORPORATION
	 	MAREMONT
      EXHAUST PRODUCTS, INC.
	 	MERITOR
      AFTERMARKET USA, LLC
	 	MERITOR
      HEAVY VEHICLE BRAKING SYSTEMS (U.S.A.), LLC
	 	MERITOR
      HEAVY VEHICLE SYSTEMS (SINGAPORE) PTE., LTD.
	 	MERITOR
      HEAVY VEHICLE SYSTEMS (VENEZUELA), INC.
	 	MERITOR
      HEAVY VEHICLE SYSTEMS, LLC
	 	MERITOR,
      INC. a Nevada Corporation
		MERITOR
      TECHNOLOGY, LLC

 

	In each case:
	  
	By:  	  /s/ Carl D.
      Anderson, II
	Name: Carl D. Anderson, II
	Title: Vice President and
Treasurer

    Consent and Reaffirmation to

Amendment No. 3 to Second Amended and Restated Credit Agreement

	ARVIN EUROPEAN HOLDINGS (UK) LIMITED
	 
	 
	BY: 	  /s/
      Mark R. Schaitkin
	NAME: Mark R. Schaitkin
	TITLE: Director
	 
	 
	ARVIN HOLDINGS NETHERLANDS B.V.
	 
	 
	By:  	  /s/ Mark R.
      Schaitkin
	Name: Mark R. Schaitkin
	Title: Director
	 
	MERITOR NETHERLANDS, B.V.
	 
	 
	By: 	  /s/ Carl D.
      Anderson, II
	Name: Carl D. Anderson, II
	Title: Director
	 
	ARVINMERITOR LIMITED
	 
	 
	By:
      	  /s/ Mark R.
      Schaitkin
	Name: Mark R. Schaitkin
	Title: Director
	 
	 
	 
	ARVINMERITOR SWEDEN AB
	 
	 
	BY: 	  /s/ Paul
      Bialy
	NAME: Paul Bialy
	TITLE: Director
	 
	 
	 
	MERITOR LUXEMBOURG S.A.R.L.
	 
	 
	By: 	  /s/ Mark R.
      Schaitkin
	Name: Mark R. Schaitkin
	Title: Director

       Consent and Reaffirmation to

Amendment No. 3 to Second Amended and Restated Credit Agreement

IN
WITNESS whereof the undersigned
has executed this Guaranty as a deed the day and year first above written.

	EXECUTED AS A DEED by	     	)	     	  /s/ Carl D. Anderson, II
	MERITOR CAYMAN ISLANDS, LTD.		)		  Duly
      Authorised Signatory
			)			 
			)		Name: 	  Carl D. Anderson, II
			)			 
	 		)		Title:	  Vice President and Treasurer
		 	)			 

in the presence of:

	  /s/ Mary Lou Patterson
	  Signature of
      Witness
	 
	Name:	Mary Lou Patterson
		 
	Address:	2135 W Maple
      Rd. Troy MI
		48084
		 
	Occupation: 	Legal Assistant
	 
	(Note: These
      details are to be completed in the
witness's own hand
    writing.)

        Consent and Reaffirmation to

Amendment No. 3 to Second Amended and Restated Credit Agreement

Annex I to

Amendment No. 3 to Second
Amended and Restated Credit Agreement 

Restated Exhibits A-1 and
A-2 

Attached.

EXHIBIT A-1
TO

SECOND AMENDED AND
RESTATED CREDIT AGREEMENT 
(as restated on the Amendment No. 3 Effective
Date) 

2017 Revolving Loan
Commitments 

	Lender	2017 Revolving Loan
  Commitment
	DEUTSCHE
      BANK AG NEW YORK BRANCH	$8,203,883.50
	CAPITAL ONE
      LEVERAGE FINANCE CORP.	$12,087,378.64
	CITIZENS
      BANK, N.A.	$20,000,000.00
	Total	$40,291,262.14

EXHIBIT A-2 
TO

SECOND AMENDED AND
RESTATED CREDIT AGREEMENT
(as restated on the Amendment No. Effective Date)

2019 Revolving Loan
Commitments 

	Lender	2019 Revolving Loan
  Commitment
	JPMORGAN
      CHASE BANK, N.A.	$65,000,000.00
	CITICORP
      NORTH AMERICA, INC.	$56,407,766.99
	BANK OF
      AMERICA, N.A.	$56,400,000.00
	ROYAL BANK
      OF CANADA	$50,000,000.00
	BNP
      PARIBAS	$50,000,000.00
	THE ROYAL
      BANK OF SCOTLAND PLC	$48,349,514.56
	LLOYDS BANK
      PLC	$40,000,000.00
	PNC BANK,
      NATIONAL ASSOCIATION	$35,000,000.00
	FIFTH THIRD
      BANK	$24,174,757.00
	COMERICA
      BANK	$20,000,000.00
	THE
      HUNTINGTON NATIONAL BANK	$20,000,000.00
	Total	$465,332,038.55

Annex II to

Amendment No. 3 to Second
Amended and Restated Credit Agreement 

EXHIBIT J 
TO

SECOND AMENDED AND
RESTATED CREDIT AGREEMENT 

FORM OF CONVERSION
CONFIRMATION 

Dated [__________] 

Reference is made to the
Second Amended and Restated Credit Agreement, dated as of February 13, 2014, by
and among Meritor, Inc., an Indiana corporation (the “Company”), ArvinMeritor Finance Ireland (the “Subsidiary Borrower”), the institutions from time to time parties
thereto as “Lenders”, and JPMorgan Chase Bank, N.A., as Administrative Agent
(the “Administrative
Agent”) (as the same may be
amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”). Terms defined
in the Credit Agreement are used herein with the same meaning. 

This agreement (this
“Conversion
Confirmation”) is a confirmation
of a Conversion referred to in Section 2.25 of the Credit
Agreement.

1. Effective as of the
Conversion Date, [________________] (the
“Converting Lender”), shall convert
$[_________] of its 2017
Revolving Loan Commitment into a 2019 Revolving Loan Commitment and the
Aggregate 2019 Revolving Loan Commitment shall be increased by such amount to
$[_________]. 

2. The proposed Conversion
Date is [________________]. 

3. The Company hereby
represents and warrants that as of the date hereof and as of the Conversion
Date, (a) all representations and warranties shall be true and correct in all
material respects as though made on such date, other than representations given
as of a particular date, in which case they shall be true and correct as of that
date and (b) no event shall have occurred and then be continuing which
constitutes an Unmatured Default or a Default. 

4. THIS CONVERSION
CONFIRMATION SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

5. This Conversion
Confirmation may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which taken together shall constitute one and the
same instrument. Delivery of an executed counterpart of a signature page of this
Conversion Confirmation by facsimile or e-mail transmission shall be effective
as delivery of a manually executed counterpart of this Conversion Confirmation.

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

	 	MERITOR,
      INC.,
		as the
      Company
		 
		 
		By:  	 
		Name:
		Title:
		 
		JPMORGAN
      CHASE BANK, N.A.,
		as
      Administrative Agent
		 
		 
		By:	 
		Name:
		Title:

	CONVERTED COMMITMENT	CONVERTING LENDER
	 
	$	[BANK]
	 
	TOTAL 2019 REVOLVING LOAN
COMMITMENT OF THE
      CONVERTING
LENDER	
	$	By:  	 
		 	
		Name:
		Title:ex10_1.htm

EXHIBIT 10.1

 

FORM OF GOLD CARRIER AGREEMENT

 

THIS AGREEMENT dated as of this       day of              , 20__.

 

B E T W E E N:

 

BANK OF MONTREAL a chartered bank under the laws of Canada (“BMO”)

 

– and –

 

[____________________], a [______________] corporation (“Carrier”)

 

RECITALS:

 

	
A.

	
Carrier is engaged in the business of selling and delivering Gold Bullion;

 

	
B.

	
BMO is engaged in, among other things, the purchase of Gold Bullion and resale and delivery thereof;

 

	
C.

	
BMO and Carrier wish to provide for the basis upon which Carrier will sell Gold Bullion to BMO and deliver Gold Bullion in as directed by BMO;

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

ARTICLE 1

INTERPRETATION

 

	
1.1

	
Definitions

 

In this Agreement the following terms shall have the following meanings:

 

1.1.1             “Affiliate” means with respect to any Person, another Person controlled by, controlling or under common control with, such Person;

 

1.1.2             “Agreement”, “this Agreement”, “the Agreement”, “hereto”, “hereof”, “herein”, “hereby”, “hereunder”, and similar expressions refer to this Agreement;

 

1.1.3             “Applicable Law” means any law, statute, regulation, rule, order, judgment, subpoena or requirement of a governmental entity in force and in effect from time to time and applicable to any Party, Person, property, transaction, activity, event or other matter related to this Agreement including, without limitation, for greater certainty, Privacy Laws and the Patriot Act;

 

1.1.4             “Authorized Person” means any individual authorized by a Party, which may include a director, an officer, an employee or a Representative of a Party or its Affiliates, as the case may be;

 

1.1.5             “BMO Deliverables” has the meaning set out in Section 4.1.1;

 

1.1.6             “BMO Indemnified Parties” has the meaning set out in Section 8.2.1;

 

1.1.7             “Business Day” means any day except Saturdays, Sundays, and statutory and civic holidays required or observed in Toronto, Ontario [or _____________];

 

  

1

  

 

1.1.8             “Carrier Indemnified Parties” has the meaning set out in Section 8.1.1;

 

1.1.9             [“Confidential Information” means all information of a Party that is not generally known to the public, whether of a technical, business or other nature (including, in the case of BMO, all Personal Information and, in the case of either Party, any other information about the business affairs or assets of the Party) that is disclosed in each case by the Party or by a Representative of the Party or an Affiliate of the Party (collectively, the “Disclosing Party”) to another Party, the other Party’s Representative or the other Party’s Affiliate (collectively, the “Receiving Party”) or that is otherwise learned by the Receiving Party in the course of its discussions or business dealings with the Disclosing Party and that has either been identified as being proprietary and/or confidential by the Disclosing Party or that by the nature of the circumstances surrounding the disclosure or receipt to the commercially reasonable business judgment of the Receiving Party ought to be treated as proprietary and confidential;]

 

1.1.10             “Delivery Completion Time” has the meaning set out in Section 4.2.1;

 

1.1.11             “Delivery Notice” means a notice in form reasonably acceptable to BMO and Carrier delivered by BMO to Carrier, whether electronically or otherwise, specifying, among other things, the point of contact, delivery address and the amount and form of Gold Bullion to be delivered in the relevant jurisdiction;

 

1.1.12             “Delivery Point Contact” means a Person to whom BMO has requested delivery of Gold Bullion under this Agreement;

 

1.1.13             “Disaster Recovery Plan” has the meaning set out in Section 4.6.1;

 

1.1.14             “Event of Default” means, in respect of a Party, (i) the failure of such Party to substantially perform its material duties or discharge its material obligations under this Agreement or (ii) an Insolvency Event in respect of such Party;

 

1.1.15             “Fee” has the meaning set out in Section 5.1.1;

 

1.1.16             “Force Majeure” means any bona fide event beyond the control of a Party (other than as a result of financial incapacity) and not caused by an act or omission of such Party or an Affiliate of such Party, in the nature of any government act, restriction, act of God, fire, war, terrorism, earthquake, regulation or control, inability to obtain labor or materials, lack or shortage of Gold Bullion , inability to obtain Gold Bullion due to market demand or market shortage, flood, embargo, sabotage, explosion, bank failure, insurrection, civil commotion, riot, general internet or wireless communication or power failure, or labor shortage or dispute that, in any such case, causes such Party to be unable to fulfill or to be delayed or restricted in the fulfillment of any duty or obligation hereunder;

 

1.1.17             “Gold Bullion” and “Bullion” means a bar, ingot, coin or wafer that is composed of gold that is refined to a purity level of at least 99.5%;

 

1.1.18             “Governmental Authority” means: (i) any government, governmental department, agency, commission, board, tribunal, dispute settlement panel or body, mediators, bureau, official, minister, Crown corporation, or court or other law, rule or regulation-making entity; and (ii) any regulatory authority, self-regulatory organization or other entity having or purporting to have jurisdiction over any Party or any Person or other matter related to this Agreement;

 

  

2

  

 

1.1.19             “Indemnified Parties” has the meaning set out in Section 8.3.1;

 

1.1.20             “Indemnifying Party” has the meaning set out in Section 8.3.1;

 

1.1.21             “Insolvency Event” means, in respect of a Party, the voluntary or involuntary liquidation, bankruptcy, insolvency, dissolution or winding-up of the Party, any general assignment, arrangement or composition with or for the benefit of the Party’s creditors, or any act in furtherance of, or indicating the Party’s consent to, approval of, or acquiescence in, any of the foregoing;

 

1.1.22             “Order” means a written Delivery Notice from BMO for a specified quantity of Gold Bullion to be purchased by BMO from Carrier.  In the event of any conflict between the terms of the Order and the terms of this Agreement, the terms of this Agreement will prevail;

 

1.1.23             “Parties” means BMO and Carrier, and “Party” means either one of them;

 

1.1.24             “Patriot Act” means that certain USA law entitled "Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001," also known as the USA Patriot Act;

 

1.1.25             “Payment” means the full sum due to Carrier based upon the terms of this Agreement, including without limitation any applicable Fee (defined in Section 5.1.1), for the applicable Order in United States dollars in good, immediately available funds;

 

1.1.26             “Person” means any individual, partnership, limited partnership, joint venture, syndicate, sole proprietorship, company or corporation with or without share capital, unincorporated association, trust, trustee, executor, administrator or other legal personal representative, regulatory body or agency, government or governmental agency, authority or entity, however designated or constituted;

 

1.1.27             “Personal Information” means information about an identifiable individual or other information that is subject to any applicable Privacy Law, and when used in the context of Personal Information means Personal Information about a customer of BMO or an Affiliate that was provided to or collected or generated by or on behalf of BMO or an Affiliate or Representative of BMO, including, without limitation, such BMO customer’s name, address, delivery instructions, amount or amounts of Gold Bullion to be delivered, and any financial information relating to such customer’s purchase of Gold Bullion (except to the extent that such financial information was provided by or derived from financial information provided by Carrier that itself was not provided by or derived from financial information provided by BMO);

 

1.1.28             “Pricing” means the pricing provided to BMO from time to time by Carrier, including without limitation, pricing for Gold Bullion and a separate fee for transportation of the Gold Bullion as required under this Agreement;

 

1.1.29             “Privacy Laws” means all federal, provincial, territorial, state, municipal or other applicable statutes, laws or regulations of any Governmental Authority in any applicable/relevant jurisdiction governing the receipt, collection, use, storage, accessing, processing, recording, disclosure, transfer, retention, disposal, destruction, management or handling of information about an identifiable individual, including without limitation, the Personal Information and Protection of Electronic Documents Act (Canada) and equivalent provincial legislation, as amended;

 

  

3

  

 

1.1.30             “Proper Instructions” means instructions given by any Authorized Person regarding any matter contemplated in this Agreement;

 

1.1.31             “Records” means books of account, records, reports and all papers related to the Services or otherwise relating to BMO;

 

1.1.32             “Representative” means, with respect to a Person, an officer, director, employee, agent, auditor, advisor or other representative of that Person;

 

1.1.33             “Services” has the meaning set out in Article 4; and

 

1.1.34             “Term” has the meaning set out in Section 3.1.

 

	
1.2

	
Interpretation

 

In this Agreement:

 

1.2.1             words denoting the singular include the plural and vice versa and words denoting any gender include all genders;

 

1.2.2             the use of headings is for convenience of reference only and shall not affect the interpretation of this Agreement; and

 

1.2.3             unless otherwise indicated, all dollar amounts expressed are in United States funds.

 

ARTICLE 2

APPOINTMENT OF THE SERVICE PROVIDER

 

	
2.1

	
Appointment of Carrier

 

BMO hereby appoints Carrier to provide the Services to BMO on and subject to the terms and conditions provided in this Agreement, and BMO covenants and agrees to timely take all actions contemplated herein in accordance with Applicable Law and in good faith.

 

	
2.2

	
Acceptance of Appointment and Level of Service

 

Carrier hereby accepts its appointment by BMO in accordance with the terms and conditions of this Agreement and covenants and agrees to perform the Services in accordance with Applicable Law and in good faith.  Carrier shall exercise that degree of timeliness, care, diligence and skill that a reasonably prudent Person would exercise in comparable circumstances.

 

ARTICLE 3

TERM

 

	
3.1

	
Term

 

This Agreement shall commence on the date hereof and unless terminated in accordance with Section 3.2, shall continue in full force and effect for a term (the “Term”) ending on [_______________], 20__ and may be renewed and extended from time to time on terms to be agreed in writing by the Parties.

 

	
3.2

	
Termination

 

3.2.1             Termination for an Event of Default

 

  

4

  

 

If at any time during the Term an Event of Default occurs, and the Party in respect of which such Event of Default has occurred (the “Defaulting Party”) has been given written notice thereof by the other Party (the “Non-Defaulting Party”) specifying with particulars the Event of Default and, for other than an Event of Insolvency, affording the Party a reasonable opportunity (which shall be no more than 30 days from the date the notice was delivered) to cure such Event of Default if it is curable, then this Agreement may be terminated upon written notice by the Non-Defaulting Party to the Defaulting Party, and such termination shall be effective as of and from the date on which the notice of termination was delivered to the Defaulting Party.

 

3.2.2             Termination Without Cause

 

3.2.2.1                BMO may, at its option, terminate this Agreement upon ninety (90) days prior written notice to Carrier, whereupon this Agreement shall terminate on a date which shall be ninety (90) days after the giving of such notice, or such later date as BMO may specify in its notice to Carrier.

 

3.2.2.2                Carrier may, at its option, terminate this Agreement upon ninety (90) days prior written notice to BMO, whereupon this Agreement shall terminate on a date which shall be ninety (90) days after the giving of such notice, or such later date as Carrier may specify in its notice to BMO.

 

	
3.3

	
Duties Flowing from Termination

 

To the extent BMO has submitted an Order pursuant to the terms of Section 4.1 prior to the termination of this Agreement in accordance with Article 3, Carrier shall provide the Services as described in Section 4.1 as if such termination did not occur. Unless agreed to by the parties in writing otherwise, BMO’s Order submitted pursuant to the terms of Section 4.1 shall not be cancellable solely due to the termination of this Agreement and Carrier’s obligation to provide Services for such Orders shall survive the termination of the Agreement and shall be subject to the terms herein.

 

  

5

  

 

	
3.4

	
Return of Records

 

Upon termination of this Agreement, Carrier at the request of BMO shall promptly deliver to BMO originals (or, if unavailable, copies) of all Records (where practical and where such are readily available) relating to the Services provided under this Agreement, which are in its possession or control.

 

	
3.5

	
Rights on Termination

 

3.5.1             Any termination by BMO under this Agreement shall terminate all rights and obligations under this Agreement except:  (i) duties described in Sections 3.3 and 3.4 and Article 9; (ii) rights and obligations in respect of amounts owing under this Agreement in respect of the period prior to such termination; (iii) indemnities contained in Section 3.3 and Article 8; and (iv) loss or damage suffered by a Non-Defaulting Party as a result of a Defaulting Party’s breach of this Agreement, after the giving of any required notice and expiration of any applicable cure period.

 

3.5.2             Any termination by Carrier under this Agreement shall terminate all rights and obligations under this Agreement except: (i) duties described in Sections 3.3 and 3.4 and Article 9; (ii) rights and obligations in respect of amounts owing under this Agreement in respect of the period prior to such termination; (iii) indemnities contained in Section 3.3 and Article 8; and (iv) loss or damage suffered by a Non-Defaulting Party as a result of a Defaulting Party’s breach of this Agreement, after giving any required notice and expiration of any applicable cure period.

 

ARTICLE 4

SERVICES

 

	
4.1

	
Services

 

Carrier agrees to provide the following services during the Term of this Agreement (collectively, the “Services”):

 

4.1.1             Upon (a) receipt from BMO of an Order for a specified amount of Gold Bullion, (b) full payment in respect thereof, including without limitation the applicable Fee(s) and (c) one or more duly completed Delivery Notices executed by BMO (the items specified in subparagraphs (a), (b) and (c) above are collectively the “BMO Deliverables”), Carrier shall sell to BMO and deliver to the Delivery Point Contact in accordance with such Delivery Notices the amount of Gold Bullion set out therein. Upon receipt of BMO Deliverables, for purposes of delivery in respect of a Delivery Notice under this Section 4.1.1, Carrier shall:

 

4.1.1.1                within ten (10) Business Days of receipt of a Delivery Notice for deliveries, deliver to the Delivery Point Contact the aggregate amount of Gold Bullion in the form of gold ingots, bars, wafers and/or coins as specified in, and to the Delivery Point Contact at the address and on such other terms specified in, the Delivery Notice; and

 

4.1.1.2                subject to Section 4.2.1.2, concurrently with a delivery of Gold Bullion to the Delivery Point Contact specified in a Delivery Notice, obtain from the Person specified in the Delivery Notice a delivery receipt in respect of the amount of Gold Bullion delivered under the Delivery Notice, and deliver such delivery receipt to BMO within five (5) Business Days after such delivery. For greater certainty, Carrier shall not complete the delivery of Gold Bullion without obtaining a receipt.

 

  

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4.1.2             All Orders must be payable and paid in United States Dollars.

 

	
4.2

	
Delivery Risk

 

4.2.1             As between the Parties, the risk and expense of the delivery of Gold Bullion under this Agreement, including, without limitation, risk of a Force Majeure occurrence, accident, theft, loss or product liability, shall be solely borne by Carrier until such time as Carrier delivers the Gold Bullion to the Delivery Point Contact in accordance with the terms of the Delivery Notice, or as permitted under Section 4.2.1.2 to BMO at which time (the “Delivery Completion Time”) the delivery will be deemed to have been completed; provided that:

 

4.2.1.1                Carrier shall continue to be responsible for any defect in Gold Bullion delivered under this Agreement if such defect existed at the time of such delivery, the Delivery Point Contact notifies BMO of such defect within 15 days of receipt thereof, and the Delivery Point Contact has not opened, removed or tampered with the original holder in which the relevant Gold Bullion was delivered; in which case Carrier, conditioned upon receipt by Carrier of the defective Gold Bullion, shall be solely responsible, at its expense, for any costs associated with delivering the relevant Delivery Point Contact Gold Bullion free of any defects in replacement of such defective Gold Bullion and to obtain a receipt from the Delivery Point Contact in respect thereof; provided, however, such replacement will be Carrier's sole and exclusive obligation and liability with respect to such defective Gold Bullion.  In no event will Carrier be liable for any damages caused by such defective Gold Bullion or for lost profits or savings or other consequential damages or special damages, regardless of the form of the action, whether in contract or in tort, including negligence, even if Carrier has been advised of the possibility of such damages, or for any claim against BMO or any other party, arising from or relating to such defective Gold Bullion.

 

4.2.1.2                Except where a Delivery Point Contact refuses to accept delivery of Gold Bullion by reason of a defect existing at the time of such delivery, if Carrier is unable to deliver Gold Bullion in accordance with the instructions contained in the Delivery Notice, within the timeframes required under this Agreement, despite using its reasonable commercial efforts to effect such delivery, upon notice to BMO Carrier shall be entitled not to effect such delivery but may deliver such Bullion to BMO in lieu thereof to an address specified by BMO and shall be entitled to receive payment therefor as if such delivery had been effected in the manner provided in this Agreement.

 

	
4.3

	
Proper Instructions

 

Each Party will, from time to time, notify each other in writing of the names of those individuals who are to be their Authorized Persons and shall provide specimen signatures of each such Authorized Person. Each Party authorizes the other Party to, and the other Party shall be entitled to, act upon and rely on, and directs the other Party to accept and act upon, Proper Instructions received by the other Party except where, prior to acting on such Proper Instructions, a Party has received proper notification that the individual who purported to give the Proper Instructions is no longer an Authorized Person.

 

  

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4.4

	
Cessation of Certain Services

 

BMO shall have the right at any time during the Term to provide written notice to Carrier that certain Services are no longer required. Such written notice shall specify the Services that are no longer required and the effective date upon which such services are to be terminated. With respect to the termination of any Services under this Section 4.4, Sections 3.3 to 3.5 shall apply with the necessary changes.

 

	
4.5

	
Records

 

4.5.1             The Parties shall maintain complete and accurate Records relevant to all material aspects of the Services performed by them hereunder.

 

4.5.2             To the extent permitted under Applicable Law, Carrier, at any and all times during normal business hours and upon reasonable written notice by BMO, will permit BMO or its Representatives to examine all Records and to make copies thereof and to make extracts therefrom as they may reasonably require.  Copies of such Records as are in electronic form shall be maintained and stored in an off-site data processing back-up facility compatible with Carrier’s data processing facility.  Carrier shall provide reasonable assistance in connection with any such examination.

 

	
4.6

	
Disaster Recovery and Business Continuity

 

4.6.1             Carrier has provided BMO with a copy of its existing disaster recovery and business continuity plan (the “Disaster Recovery Plan”), which Disaster Recovery Plan has been received by BMO.

 

4.6.2             Carrier undertakes to provide to BMO, within five (5) Business Days notice of any material modification to such Disaster Recovery Plan, and, if requested by BMO after receiving such notice, Carrier shall promptly provide BMO a copy of the Disaster Recovery Plan reflecting the material modification.

 

	
4.7

	
Access to Pricing

 

BMO will be permitted hereunder to create a link to Carrier's proprietary FizTrade website, which link will access the Pricing for Gold Bullion provided by Carrier to BMO from time to time.

 

	
4.8

	
Minimum Order

 

BMO will not place and Carrier will not have any duty to accept any Order for less than one ounce of Gold Bullion.

	
4.9

	
Sale Only to BMO

 

4.9.1             It is understood and agreed that Carrier is contracting under this Agreement solely with BMO to supply and sell Gold Bullion to BMO, and Carrier is not selling Gold Bullion hereunder to any third parties or other Persons.  Carrier will ship the Gold Bullion purchased by BMO to the Delivery Point Contact designated by BMO in accordance with the terms and conditions set forth in this Agreement.  No Delivery Point Contact is a party to or third party beneficiary of this Agreement, and Carrier has no duties or obligations arising under or pursuant to this Agreement to a Person other than BMO, as more fully set forth herein.

 

  

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ARTICLE 5

FEES

 

	
5.1

	
Fee for Services

 

5.1.1             BMO agrees to pay Carrier and its Affiliates, as applicable, a fee in accordance with the Pricing for each purchase of Gold Bullion by BMO and delivery to the applicable point of contact as determined by BMO during the Term, which Pricing will include both Pricing for the Gold Bullion purchased from Carrier and a separate fee for transportation of the Gold Bullion by Carrier's Affiliates, as required hereunder (each a “Fee” and collectively the “Fees”).

 

5.1.2             Except as otherwise expressly provided for in this Agreement or approved by BMO, (i) Carrier and its Affiliates, as applicable, shall not be entitled to any other compensation, reimbursement or payment for the Services under this Agreement, and (ii) the Fee shall be payable to Carrier and its Affiliates, as applicable, without deduction, abatement, or set off.

 

	
5.2

	
Manner and Timing of Payment

 

The Fees will be paid by BMO concurrently with delivery to Carrier of the Order and Payment thereof, in accordance with the same terms for payment as required by the applicable Order.

 

	
5.3

	
Payment of Taxes

 

5.3.1             Each Party shall be responsible for complying with all applicable sales, goods and services, harmonized sales, value-added tax and any applicable customs tariff or similar duty obligations imposed on it by a Governmental Authority in connection with the transactions contemplated herein.

 

5.3.2             BMO is responsible for paying all applicable sales, goods and services, harmonized sales, value-added taxes and any applicable customs tariff or similar duty payable by BMO in respect of the Services and which Carrier is required to charge, collect and remit in respect of the Services.  For greater certainty, BMO shall not be responsible for any income taxes, property taxes, payroll taxes or any other similar taxes payable by Carrier.

 

5.3.3             Without limitation of BMO's obligations otherwise set forth in this Article 5, including without limitation Section 5.3.3, BMO is not required to pay, nor is it liable or responsible for, any penalty, additional taxes, costs or interest that may be assessed or levied resulting from failure of Carrier to comply with any sales, goods and services, harmonized sales, value-added tax or any applicable customs tariff or similar duty obligations including the failure to file any return, form, or information statement that may be required by any Governmental Authority, except to the extent caused by the gross negligence, bad faith, fraud or willful misconduct of BMO, or the failure of BMO to comply with its obligations under this Agreement, including without limitation BMO's obligations under Sections 5.3.3 or 5.3.5.

 

5.3.4             BMO will deduct or withhold from any payment made under this Agreement any amount that BMO is required to deduct or withhold in accordance with Applicable Law (“Withheld Taxes”) and BMO will timely remit such Withheld Taxes to the appropriate Governmental Authority by the applicable deadline.  All such Withheld Taxes shall be treated for all purposes as having been paid to Carrier and its Affiliates, as applicable.  BMO shall furnish Carrier or its Affiliates, as applicable, with an original tax certificate (if applicable) from the relevant governmental authority or other official governmental form (such as Form T4A-NR or its equivalent).  Each Party will be responsible for Taxes imposed on its net income.

 

  

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5.3.5             The Parties agree to cooperate with each other to enable each to more accurately determine their respective Tax liabilities and to minimize such liability to the extent legally permissible.  Each Party will provide and make available to the other any other information or documents which are reasonably required by the other Party and not confidential to the transmitting Party.  Carrier shall produce invoices or other documentation in a form reasonably agreed to between the Parties.

 

5.3.6             For purposes of this Section 5.3, “Tax” or “Taxes” means any local, domestic or foreign tax of any kind or nature whatsoever, any levy, impost, duty or other charge of a similar nature, and includes any sales tax, value-added tax, goods and services or harmonized tax, transfer tax, withholding tax or any applicable customs tariff or similar duty (including any penalty, interest, or addition to tax payable in connection with any of the foregoing).

 

ARTICLE 6

AUDIT RIGHTS AND REPORTS

 

	
6.1

	
Furnish Information

 

During the Term, following a reasonable prior written request by BMO, and at reasonable times, Carrier shall make available to BMO and its Representatives, such information and material as they may reasonably request for any purpose specified by BMO, including, without limitation, for the purpose of Section 6.3.

 

	
6.2

	
Reasonable Assistance

 

During the Term, following the reasonable prior written request by BMO and at BMO’s cost, Carrier shall make reasonably available to BMO and its Representatives, at reasonable times, those employees engaged by Carrier who have the necessary knowledge, experience and expertise to provide reasonable assistance to BMO and its Representatives in their examination of information and material referred to in Section 6.1 in connection with such information and material as they may reasonably request for confirmation of compliance by Carrier in the performance of its duties and obligations under this Agreement.

 

	
6.3

	
Access to Carrier’s Premises

 

6.3.1             Subject to compliance by BMO and its Representatives with Section 6.3.2, Carrier will permit BMO and its Representatives to have reasonable access to its premises and facilities as reasonably necessary with respect to the Services described under, and for BMO to exercise its rights under, this Agreement, and will instruct its employees, vendors, Affiliates, counsel and advisors to reasonably co-operate with BMO and its Representatives in connection with such access.

 

6.3.2             BMO will comply, and will ensure that all its Representatives who access Carrier’s premises and facilities fully comply with any and all policies and guidelines of Carrier and its insurers related to the conduct of Persons on such premises and facilities provided or communicated by Carrier to BMO from time to time, or of which BMO or the relevant Representatives otherwise have actual notice.

 

  

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6.3.3             BMO and its Representatives will use commercially reasonable efforts not to interfere with Carrier's business operations in the Premises and BMO will indemnify and defend and hold harmless Carrier and its Affiliates and their insurers from and against any and all expenses, losses, costs, liabilities, claims or judgments arising from any entry provided for under this Section 6.3, including without limitation any theft by BMO personnel or its Representatives resulting therefrom.

 

	
6.4

	
Audit Rights

 

6.4.1             To the extent permitted under Applicable Law, at BMO’s own cost and expense, BMO may appoint an internal or external auditor or other professional advisor at any time, and from time to time, to review and confirm any aspect of the Services, or other matters related to this Agreement as required by Applicable Law.

 

ARTICLE 7

REPRESENTATIONS AND WARRANTIES

 

	
7.1

	
Representations and Warranties of Carrier

 

7.1.1             To induce BMO to enter into this Agreement, Carrier hereby represents and warrants to BMO, upon each of which representations and warranties BMO specifically relies, as follows:

 

7.1.1.1                Status.  Carrier is a corporation duly incorporated and organized and is validly existing under the laws of the State of [___________] and has all necessary power and authority to own and operate its assets and carry on its business.

 

7.1.1.2                Corporate Authority.  Carrier has the corporate power and corporate authority to enter into this Agreement and to do all acts and execute and deliver all other instruments as are required hereunder to be done, observed or performed by it in accordance with the terms hereof.

 

7.1.1.3                Valid Authorization.  Carrier has taken all necessary action to authorize the execution, delivery and performance of this Agreement and, subject to Section 9.6.5, to observe and perform the provisions of this Agreement in accordance with its terms.

 

7.1.1.4                Validity of Agreement and Enforceability.  Subject to Section 9.6.5, this Agreement constitutes a valid and legally binding obligation of Carrier enforceable against it in accordance with its terms subject to applicable bankruptcy, insolvency and other laws of general application limiting the enforceability of creditors’ rights and to the fact that equitable remedies are available only in the discretion of the court. Neither the execution and delivery of this Agreement, nor the performance of its obligations hereunder or compliance with the terms and conditions hereof, (i) has resulted or will result in a violation of the organizational documents of Carrier or, subject to Section 9.6.5, any Applicable Law, order, judgment, injunction, award or decree, (ii) has resulted or will result in a breach of, or constitute a default under, any agreement or other instrument to which Carrier is a Party or by which it is bound, (iii) requires any approval or consent of any Governmental Authority except as has already been obtained, or (iv) would be adversely affected by any claim or proceeding against or involving Carrier or to which it is a party.

 

  

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7.1.1.5                Qualification to Perform the Services.  Subject to Section 9.6.5, Carrier has conducted and is conducting its business in compliance in all material respects with all Applicable Laws of each jurisdiction in which it carries on business and holds all necessary licences, permits, approvals, consents, certificates, registrations and authorizations (whether governmental, regulatory or otherwise) to carry on its business as now conducted in accordance with Applicable Law and to enable it to provide the Services to BMO in accordance with this Agreement.

 

7.1.1.6                Insurance Coverage. Carrier maintains, and covenants that it will during the Term maintain, insurance in scope and amounts consistent with its past practices, including without limitation, Force Majeure occurrences, accidents, theft, loss, general liability and product liability.

 

	
7.2

	
Representation and Warranties of BMO

 

To induce Carrier to enter into this Agreement, BMO hereby represents and warrants to Carrier, upon each of which representations and warranties Carrier specifically relies, as follows:

 

7.2.1             Status.  BMO is a bank duly incorporated and organized and is validly existing as a chartered bank under the Bank Act (Canada) and has all necessary power and authority to own and operate its assets and carry on its business.

 

7.2.2             Corporate Authority.  BMO has the corporate power and authority to enter into this Agreement and to do all acts and to execute and deliver all other instruments as are required hereunder to be done, observed or performed by it in accordance with the terms hereof.

 

7.2.3             Valid Authorization.  BMO has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement and to observe and perform the provisions of this Agreement in accordance with its terms.

 

7.2.4             Validity of Agreement and Enforceability.  This Agreement constitutes a valid and legally binding obligation of BMO enforceable against it in accordance with its terms subject to applicable bankruptcy, insolvency and other laws of general application limiting the enforceability of creditors’ rights and to the fact that equitable remedies are available only in the discretion of the court. Neither the execution and delivery of this Agreement, nor the performance of its obligations hereunder or compliance with the terms and conditions hereof, (i) has resulted or will result in a violation of the constating documents of BMO or any Applicable Law, order, judgment, injunction, award or decree, (ii) has resulted or will result in a breach of, or constitute a default under, any agreement or other instrument to which BMO is a Party or by which it is bound, (iii) requires any approval or consent of any Governmental Authority except as has already been obtained, or (iv) would be adversely affected by any claim or proceeding against or involving BMO or to which it is a party.

 

7.2.5             No Agency.  BMO is not acting as an agent hereunder for any third party or other Person(s), and there are no undisclosed agency relationships arising hereunder.

 

  

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7.3

	
Survival

 

The representations and warranties contained in Sections 7.1 and 7.2 shall survive the execution and delivery of this Agreement and shall continue in full force and effect during the Term for the benefit of BMO if made under Section 7.1 and Carrier if made under Section 7.2.

 

ARTICLE 8

INDEMNITIES

 

	
8.1

	
Indemnity by BMO

 

8.1.1             Both during and after the termination of this Agreement, BMO agrees, subject as hereinafter provided, to indemnify and save Carrier, its Affiliates and their respective officers, directors, employees, agents, advisors and other Representatives (the “Carrier Indemnified Parties”) harmless from any action, cause of action, suit, debt, liability, loss, costs, expense, claim or demand whatsoever at law or in equity incurred or suffered by any Carrier Indemnified Party in the performance by it of any of its obligations under this Agreement or duties or Services performed or satisfied by or to be carried out by it pursuant to this Agreement as a result of BMO’s gross negligence or willful misconduct, but the indemnity provided under this Section shall not extend, to the extent that any of the foregoing arises out of:

 

8.1.1.1                any theft or loss of or damage to Gold Bullion acquired by BMO under Section 4.1.1 where such theft, loss or damage occurs prior to the Delivery Completion Time;

 

8.1.1.2                any of the representations and warranties of Carrier herein being untrue as of the date at which they are given;

 

8.1.1.3                any breach by Carrier of any of its covenants provided for herein, any Applicable Laws, subject to Section 9.6.5 or any other terms of this Agreement;

 

8.1.1.4                subject to Section 9.6.5, the willful misconduct or gross negligence of any Carrier Indemnified Party; or

 

8.1.1.5                except to the extent taken pursuant to Applicable Law, any action taken by any Carrier Indemnified Party outside of the scope of authority set forth in this Agreement.

 

	
8.2

	
Indemnity by Carrier

 

8.2.1             Both during and after the termination of this Agreement, Carrier agrees, subject as hereinafter provided, to indemnify and save BMO, its Affiliates and their respective officers, directors, employees, agents, advisors and other Representatives (the “BMO Indemnified Parties”) harmless from any action, cause of action, suit, debt, liability, loss, costs, expense, claim or demand whatsoever at law or in equity incurred or suffered by such BMO Indemnified Party because of:

 

8.2.1.1                any theft or loss of or damage to Gold Bullion acquired by BMO under Section 4.1.1 where such theft, loss or damage occurs prior to the Delivery Completion Time;

 

  

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8.2.1.2                any of the representations and warranties of Carrier herein being untrue as of the date at which they are given;

 

8.2.1.3                expressly subject to Section 9.6.5 and Applicable Law, any breach by Carrier of any of its covenants provided for herein, any Applicable Laws or any other terms of this Agreement;

 

8.2.1.4                subject to Section 9.6.5, the willful misconduct or gross negligence of any Carrier Indemnified Party; or

 

8.2.1.5                except to the extent taken pursuant to Applicable Law, any action taken by any Carrier or its Representatives outside of the scope of authority set forth in this Agreement.

 

	
8.3

	
Indemnification Claims

 

8.3.1             If any claim contemplated by this Article 8 shall be asserted by a third party against BMO Indemnified Parties or against the Carrier Indemnified Parties (in either case, the “Indemnified Parties”), or if any potential claim contemplated by this Article 8 shall come to the actual knowledge of a Party or any of the Indemnified Parties, the Party shall notify the other Party (the “Indemnifying Party”) as soon as possible as to the nature of such claim (provided that any failure to so notify shall not affect the Indemnifying Party’s liability under this Section unless the Indemnified Party is materially prejudiced by such failure) and the Indemnifying Party shall, subject as hereinafter provided, be entitled (but not required) to assume the defence on behalf of the Indemnified Parties of any suit brought to enforce such claim; provided that the defence shall be through legal counsel acceptable to the Indemnified Parties acting reasonably and no settlement or admission of liability shall be made by the Indemnifying Party or an Indemnified Party without, in each case, the prior written consent of the Parties, such consent not to be unreasonably withheld. An Indemnified Party shall have the right to employ separate counsel in any such suit and participate in the defence thereof but the fees and expenses of such counsel shall be at the expense of the Indemnified Parties unless:

 

8.3.1.1                the Indemnifying Party fails to assume the defence of such suit on behalf of such Indemnified Parties within ten Business Days of receiving notice of such suit;

 

8.3.1.2                the employment of such counsel has been authorized by the Indemnifying Party; or

 

8.3.1.3                the named parties to any such suit include both the Indemnified Parties and the Indemnifying Party and the Indemnified Party shall have been advised by counsel (i) that there may be one or more legal defences available to the Indemnified Parties which are different from those available to the Indemnifying Party or (ii) a conflict of interest would exist for a counsel representing both parties, in either case the Indemnifying Party shall not have the right to assume the defence of such suit on behalf of the Indemnified Parties but shall be liable to pay the reasonable fees and expenses of counsel for the Indemnified Party.

 

8.3.2             The Indemnifying Party shall not be liable under this Section to pay (i) the fees and expenses of more than one law firm acting as counsel on behalf of the Indemnified Parties (except as provided by Section 8.3.1), or (ii) any indirect, incidental, special or consequential damages of the Indemnified Parties.

 

  

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ARTICLE 9

CONFIDENTIALITY

 

	
9.1

	
Scope of Confidentiality Obligations

 

This Article 9 will apply to all Confidential Information disclosed by BMO as Disclosing Party to Carrier as Receiving Party, and to any and all Confidential Information disclosed by Carrier as Disclosing Party to BMO as Receiving Party, in each case both prior to and subsequent to the date of this Agreement.  This Article 9 will not apply to any Confidential Information disclosed by Carrier to BMO or BMO to Carrier after termination or expiry of this Agreement.  The obligations of the Parties with respect to the Confidential Information disclosed prior to the termination or expiry of this Agreement for any reason will survive such termination or expiry.

 

	
9.2

	
Use of Confidential Information

 

Except to the extent otherwise required by Applicable Law, the Receiving Party will not use, or permit others to use, Confidential Information for any purpose except the performance of the Receiving Party’s obligations under this Agreement.  Except as permitted by this Agreement, or otherwise required under Applicable Law, the Receiving Party agrees, and agrees to cause its Representatives, Affiliates and third party contractors not to disclose, disseminate, provide access to, use or otherwise make available to any Person the Confidential Information of the Disclosing Party without the Disclosing Party’s prior written consent.

 

	
9.3

	
Exceptions

 

The provisions of Section 9.1 will not apply to any information that:

 

9.3.1             at the time of disclosure, is already known by the Receiving Party without any other obligation of confidentiality;

 

9.3.2             is or becomes publicly known through no wrongful act of the Receiving Party or any other Person subject to a confidentiality agreement with respect to such information;

 

9.3.3             is rightfully received from a third party without similar restriction provided that the third party did not come into possession of the Confidential Information as a result, directly or indirectly, of a breach of an obligation of confidentiality owed by any Person to the Disclosing Party or any other Person;

 

9.3.4             is independently and rightfully developed by or on behalf of the Receiving Party without recourse to the Confidential Information;

 

9.3.5             is disclosed as required by law or as may be required by the regulations or policies of any Governmental Authority; but if disclosed under this Section 9.3.5, the Disclosing Party shall, to the extent permitted under Applicable Law, comply with Section 9.5; or

 

9.3.6             Carrier acting reasonably deems to be necessary to be disclosed on a confidential basis for the proper performance of its duties and obligations under this Agreement.

 

  

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9.4

	
Disclosure to Representatives

 

9.4.1             Notwithstanding anything to the contrary, the Receiving Party may disclose or allow disclosure of the Confidential Information to its Affiliates, to its Representatives, to its third party contractors, including without limitation the Royal Canadian Mint, and to the Representatives of its Affiliates, and third party contractors, including without limitation the Royal Canadian Mint, provided that such disclosure is permitted only to the extent necessary for the Receiving Party to exercise its rights and/or perform its obligations under this Agreement and such parties are advised on the confidential nature of the information and agree to keep the information confidential, subject to the requirements of Applicable Law.

 

9.4.2             The Receiving Party will ensure that all Persons to whom disclosure is made as permitted by Section 9.3.6 and this Section 9.4 are bound by confidentiality obligations no less stringent than those set out in this Article 9 and that all such Persons comply with this Article 9.  Any breach of this Article 9 by a Person to whom Section 9.3.6 and this Section 9.4 apply will be deemed a material breach of this Agreement by the Receiving Party.

 

	
9.5

	
Required Disclosure

 

If the Receiving Party becomes legally obligated to disclose Confidential Information in connection with any judicial proceeding or government investigation, the Receiving Party will, to the extent permitted by Applicable Law, give the Disclosing Party prompt written notice sufficient to allow the Disclosing Party to seek a protective order or other appropriate remedy, and will, to the extent practicable and permitted by Applicable Law, consult with Disclosing Party in an attempt to agree on the form, content, and timing of such disclosure.  The Receiving Party will disclose only such Confidential Information as is required, in the opinion of its counsel, and to the extent permitted under Applicable Law, will use commercially reasonable efforts, at the expense of the Disclosing Party, to obtain confidential treatment for any Confidential Information that is so disclosed.

 

	
9.6

	
Personal Information

 

9.6.1             Without limiting the generality of the other provisions of this Article 9, to the extent permitted under Applicable Law, and subject to the provisions of the Agreement, Carrier and its Affiliates will collect, use, store, disclose, dispose of and otherwise handle Personal Information collected or accessible to Carrier as a result of performing the Services (“BMO Personal Information”) in accordance with BMO’s privacy policies notified to Carrier.

 

9.6.2             To the extent permitted under Applicable Law, Carrier and its Affiliates will collect, use, store, disclose, dispose of and otherwise handle BMO Personal Information solely for the purpose of performing its obligations pursuant to this Agreement and, to the extent permitted under Applicable Law, will restrict access to BMO Personal Information to those of its or its Affiliates’ employees and its third party contractors, including without limitation, the Royal Canadian Mint, who have a legitimate business need for BMO Personal Information for the purpose of fulfilling Carrier’s obligations to BMO under this Agreement, and who have agreed to handle BMO Personal Information in accordance with the terms of this Agreement.

 

9.6.3             To the extent permitted under Applicable Law, Carrier will, at BMO’s written direction and cost, cooperate and comply with any requests or instructions issued by any privacy or data protection authority, including the Canadian Privacy Commissioner and any other Governmental Authority applicable to BMO, its Affiliates or BMO Personal Information.

 

  

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9.6.4             To the extent permitted under Applicable Law, except as otherwise permitted under this Agreement, Carrier will refer to BMO all requests for access to BMO Personal Information and will, to the extent permitted under Applicable Law, respond to any such request only by making reference to such referral.

 

9.6.5             Notwithstanding anything to the contrary, BMO acknowledges that Carrier and its Affiliates are entities formed under the laws of the United States of America ("USA") and that the principal place of business of Carrier is located in the State of [_____________], USA, and that Personal Information received by Carrier and its Affiliates will be received, processed and stored in the USA.  BMO acknowledges that Personal Information transmitted to Carrier and its Affiliates is subject to access by the regulatory authorities in and to the laws of the USA.  BMO agrees that: (1) Carrier and its Affiliates shall only be provided with access to Personal Information about BMO and/or individuals about whom BMO collects Personal Information, in connection with providing the Services provided for under this Agreement; (2) BMO has obtained all required consents, if any, for such disclosure or activities, and shall otherwise disclose or permit or allow the transfer or disclosure of such Personal Information only in compliance with applicable legislation regarding the protection of Personal Information; and (3) BMO shall indemnify and hold Carrier and its Affiliates and their respective partners, employees, authorized representatives and associated entities harmless from any claim, demand, debt, action or liability of or to any third party, including legal costs and disbursements arising out of or in respect of (a) any breach of BMO's duties and obligations under this Section 9.6.5; or (b) breach by BMO or any of its Affiliates of any Privacy Laws, except to the extent required by Applicable Law or otherwise finally judicially determined to have resulted from the gross negligence, bad faith, fraud or willful misconduct of Carrier.

 

9.6.6             Notwithstanding anything to the contrary, Carrier shall indemnify and hold BMO and its Affiliates and their respective partners, employees, authorized representatives and associated entities harmless from any claim, demand, debt, action or liability of or to any third party, including legal costs and disbursements arising out of or in respect of (a) any breach of Carrier's duties and obligations under this Section 9.6; or (b) breach by Carrier or any of its Affiliates of any Privacy Laws, except to the extent required by Applicable Law, or otherwise finally judicially determined to have resulted from the gross negligence, bad faith, fraud or willful misconduct of BMO.

 

	
9.7

	
Irreparable Harm

 

The Receiving Party acknowledges that disclosure or use of Confidential Information in violation of this Agreement could cause irreparable harm to the Disclosing Party for which monetary damages may be difficult to ascertain or be an inadequate remedy.  The Receiving Party therefore agrees that the Disclosing Party will have the right, in addition to its other rights and remedies, to seek injunctive relief for any violation of this Article 9.

 

	
9.8

	
Ownership of Confidential Information

 

Except to the extent otherwise required by Applicable Law, all Confidential Information will remain the exclusive property of the Disclosing Party, and the Receiving Party will have no rights, by licence or otherwise, to use the Confidential Information except as otherwise expressly provided herein and solely to the extent necessary for the Receiving Party to perform its obligations under this Agreement, except to the extent otherwise required by Applicable Law.

 

  

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9.9

	
No Warranties

 

Except as otherwise expressly provided herein, no warranties of any kind are given by the Disclosing Party with respect to the accuracy, appropriateness or completeness of Confidential Information provided to the Receiving Party.

 

	
9.10

	
Protection of Confidential Information

 

Except to the extent otherwise required under Applicable Law, the Receiving Party shall use generally accepted and commercially reasonable methods to protect against loss, theft, unauthorized access, disclosure or use of Confidential Information of the Disclosing Party and from loss of such Confidential Information using technology, physical protection measures, processes and standards of practice that are consistent with industry accepted practices used or observed by comparable entities in the business of refining, selling or delivering Gold Bullion in the United States, including, in the case of Confidential Information stored on a computer storage medium or system or other database, employing customary methods of access protection, firewalls, virus protection and back-up storage.  Except to the extent otherwise required by Applicable Law, in the event any loss, theft or unauthorized access, copying, modification, use or disclosure occurs, the Receiving Party will promptly notify the Disclosing Party upon becoming aware of the nature and details of such loss, theft or unauthorized access, copying, modification, use or disclosure, and except to the extent otherwise required by Applicable Law, will respond to such event as directed by the Disclosing Party.

 

	
9.11

	
Return or Destruction of Confidential Information

 

To the extent permitted by Applicable Law, the Receiving Party will promptly return or destroy, and, if requested by the Disclosing Party, verify in writing its destruction of, all tangible material embodying Confidential Information (in any form and including, without limitation, all summaries, copies and excerpts of Confidential Information and all electronic media or records containing or derived from Confidential Information) on the earlier of: (i) the termination or expiry of this Agreement; and (ii) the Disclosing Party’s written request.

 

ARTICLE 10

GENERAL

 

	
10.1

	
Notices

 

Any notice or other communication required or permitted to be given hereunder except Delivery Notices shall be in writing and shall be delivered by one Party to the other Party as the other Party’s address provided below, to the attention of the Person specified below. Either Party may change its address or directions for delivery by electronic mail for notices by notice given in the manner aforesaid. Any such notice or other communication shall be in writing, and unless delivered to a responsible officer of the addressee, shall be given by registered mail or by hand delivery, and shall be deemed to have been given when such notice should have reached the addressee in the ordinary course, provided there is no strike by postal employees in effect or other circumstances delaying mail or delivery, in which case notice will be delivered or given by telecopy, electronic mail or hand delivery.  All notices or other communications to be delivered hereunder shall be addressed as follows:

 

  

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(a)

	
To BMO:

 

Bank of Montreal

1 First Canadian Place

Toronto, Ontario   M5X IB1

	
  

	
Attention:

	
Simon Carling

	
  

	
Fax:

	

(416) 359-5727

	
  

	
Email:

	

Simon.Carling@bmo.com

 

with a copy to:

 

Bank of Montreal

3 Times Square, 28th Floor

New York, NY 10036

	
  

	
Attention:

	
Usec Rho, Senior Counsel, Legal Group

	
  

	
Email:

	

Usec.Rho@bmo.com

	
  

	
(b)

	
Carrier:

 

_______________________________________

_______________________________________

_______________________________________

Attention:

Fax:

Email:

 

with a copy to:

 

_______________________________________

_______________________________________

_______________________________________

Attention:

Fax:

Email:

 

 

or at such other address or fax number as a Party may from time to time advise the other Party by notice in writing.  The date of receipt of any such notice shall be deemed to be the date of delivery thereof.

 

	
10.2

	
Expenses

 

Except as otherwise provided herein, each Party shall be responsible for its own fees (including legal fees), disbursements and expenses.

 

	
10.3

	
Waiver

 

No waiver of any provision of this Agreement shall be binding unless it is in writing.  No indulgence or forbearance by a Party shall constitute a waiver of such Party’s right to insist on performance in full and in a timely manner of all covenants in this Agreement.  Waiver of any provision shall not be deemed to waive the same provision thereafter, or any other provision of this Agreement at any time.

 

  

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10.4

	
Further Assurances

 

Each Party shall act in good faith in performing its obligations and exercising its rights herein and shall promptly do, make, execute or deliver, or cause to be done, made, executed or delivered, all such further acts, documents and things as the other Party hereto may reasonably require from time to time for the purpose of giving effect to this Agreement and shall use reasonable commercial efforts and take all such steps as may be reasonably within its power to implement to their full extent the provisions of this Agreement.

 

	
10.5

	
Entire Agreement

 

This Agreement constitutes the entire agreement between the Parties pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written, of the Parties.  There are no warranties, representations or other agreements between the Parties in connection with the subject matter hereof except as specifically set forth in this Agreement.

 

	
10.6

	
No Assignment or Subcontracting

 

Neither this Agreement nor any of the rights and obligations arising from it shall be assignable in whole or in part by any Party, except with the prior written approval of the other Party. For greater certainty, Carrier shall not be entitled to subcontract any of its obligations under this Agreement without the prior written consent of BMO.

 

	
10.7

	
Successors and Assigns

 

All of the terms and provisions of this Agreement shall be binding upon the Parties hereto and their respective permitted successors and assigns.

 

	
10.8

	
No Partnership

 

The Parties acknowledge that they are independent contractors and that it is not intended by entering into this Agreement that the Parties form a partnership of any nature whatsoever, nor is it intended by carrying out the terms hereof that they should be characterized as carrying on business in partnership or as joint venturers.  Each Party shall not take or omit to take any action whatsoever which might reasonably result in any Person believing that the Parties are carrying on business in partnership and each of them shall co-operate to take all steps necessary and desirable to avoid the creation of such an impression of partnership.  There is no agreement between the Parties to share profits or losses.

 

	
10.9

	
Remedies Not Exclusive

 

The rights available to the Parties hereto under this Agreement and at law shall be deemed to be several and not dependent on each other and each such right shall be accordingly construed as complete in itself and not by reference to any other such right. Any one or more and/or any combination of any such rights may be exercised by a Party hereto from time to time and no such exercise shall exhaust the right or preclude the other Party from exercising any one or more of such rights or combinations thereof from time to time thereafter or simultaneously.

 

  

20

  

 

	
10.10

	
Time of the Essence

 

Time is of the essence to every provision of this Agreement.  Extension, waiver or variation of any provision of this Agreement shall not be deemed to affect this provision and there shall be no implied waiver of this provision.

 

	
10.11

	
Amendments

 

This Agreement may not be modified or amended except by written agreement of the Parties.

 

	
10.12

	
Severability

 

If any covenant, obligation or agreement of this Agreement, or the application thereof, to any Person or circumstance shall, to any extent, be invalid or unenforceable, then the remainder of this Agreement or the application of such covenant, obligation or agreement to Persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby.  Each covenant, obligation and agreement of this Agreement shall be separately valid and enforceable to the fullest extent permitted by law.

 

	
10.13

	
Force Majeure

 

No Party hereto shall be liable for a delay in performance of its non-monetary obligations hereunder to the extent that such delay results from Force Majeure and the obligation, or part thereof, which a Party is prevented from performing shall be suspended for the period of such Force Majeure and the time period for performance of such obligations shall be extended for such period of Force Majeure.

 

	
10.14

	
Governing Law

 

This Agreement shall be governed by and construed in accordance with the laws of the State of [New York], without giving effect to the conflict of law principles thereof, and the Parties irrevocably consent to the non-exclusive jurisdiction of the federal and state courts located in the county of [New York, State of New York].

 

	
10.15

	
Counterparts

 

This Agreement may be executed in any number of counterparts, each of which, when so executed, shall be deemed to be an original and all of which, when taken together, shall constitute one and the same agreement.

 

	
10.16

	
[No Third Party Beneficiaries

 

This Agreement will inure only to the benefit of Carrier and BMO, and their permitted successors and assigns hereunder.  There are no third party beneficiaries of this Agreement, except for the parties described hereunder who are entitled to indemnification.  BMO is Carrier’s only customer under this Agreement; and BMO acknowledges that notwithstanding any delivery instructions that may be contained in any order, BMO is Carrier’s only customer and the person or entity receiving the Gold Bullion other than BMO is not Carrier’s customer.]

 

No schedules are attached to this Agreement.

 

[Signatures on following page]

  

21

  

 

IN WITNESS WHEREOF the Parties have duly executed this Agreement on the date written on the first page of this Agreement.

 

	  	  	
BANK OF MONTREAL

 

	
Per:

	  
	  	
Authorized Signatory

	  	  
	
Per:

	  
	  	
Authorized Signatory

	  	  	
 

[CARRIER

]

__________________________________________,

a[ ____________] corporation

	  	  
	
By:

	  
	  	  
	
Its:

	
Authorized Signatory

 

 

 

 

 

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