Document:

EX-10.14

 Exhibit 10.14 

MAVENIR PLC 

2020 EQUITY INCENTIVE PLAN 

Option Award Notice 
 [Name of Optionee] 

You have been awarded an option to purchase Class A ordinary shares of Mavenir plc, a public limited company incorporated under the laws of England
and Wales (the “Company”). The option is granted pursuant to the terms and conditions of the Mavenir plc 2020 Equity Incentive Plan (the “Plan”) and the Share Option Agreement (together with this Award Notice, the
“Agreement”). Copies of the Plan and the Share Option Agreement are attached hereto. Capitalized terms not defined herein shall have the meanings specified in the Plan or the Agreement. 

 

			
	Option:	  	You have been awarded a Nonqualified Share Option to purchase from the Company [____] of its Class A ordinary shares, subject to adjustment as provided in Section 5.2 of the Agreement.
		
	Grant Date:	  	[____________________, _____]1
		
	Exercise Price:	  	The price per share at which Class A ordinary shares of the Company are initially offered for sale to the public by the Company’s underwriters in the Initial Public Offering, subject to adjustment as provided in
Section 5.2 of the Agreement.2
		
	Vesting Schedule:	  	Except as otherwise provided in the Plan, the Agreement or any other agreement between the Company or any of its Subsidiaries and Optionee, the Option shall vest with respect to 25% of the shares subject to the Option on the Grant
Date on the one-year anniversary of the Initial Public Offering3 and in twelve (12) equal quarterly installments every three (3) months
thereafter, in each case, only if, (i) the Initial Public Offering occurs on or before [____ __], 2020 and (ii) Optionee remains continuously employed by the Company through the applicable vesting date. For the avoidance of doubt,
if the Initial Public Offering does not occur on or before [_____ __], 2020, the Option shall be forfeited as of such date.
		
	Expiration Date:	  	Except to the extent earlier terminated pursuant to Section 2.2 of the Agreement or exercised by Optionee pursuant to Section 2.3 of the Agreement, the Option shall terminate at
5:00pm central time on the tenth anniversary of the Grant Date.

  

			
	MAVENIR PLC

 
			
		
	By:	 	 

 
			
	Name:	 	
	Title:	 	

  

	1 	 NTD: To be on or prior to pricing. 

	2 	 NTD: For any grants made after the IPO, the Exercise Price will be equal to the Fair Market Value on the Grant Date.

	3 	 NTD: For any grants made after the IPO, vesting will be measured from the Grant Date and not the IPO.

 Acknowledgment, Acceptance and Agreement: 

By signing below and returning this Award Notice to Mavenir plc, I hereby acknowledge receipt of the Agreement and the Plan, accept the Option granted to me and agree to
be bound by the terms and conditions of this Award Notice, the Agreement and the Plan. 
  

                   
                         

    
                                        

Optionee 
     
               
     
                                        

Date 

  
 Signature Page to Share Option
Agreement 

 MAVENIR PLC 

2020 EQUITY INCENTIVE PLAN 

SHARE OPTION AGREEMENT 

Mavenir plc, a public limited company incorporated under the laws of England and Wales (the “Company”), hereby grants to the
individual (“Optionee”) named in the award notice attached hereto (the “Award Notice”) as of the date set forth in the Award Notice (the “Option Date”), pursuant to the provisions of the Mavenir plc
2020 Equity Incentive Plan (the “Plan”), an option to purchase from the Company the number of Class A ordinary shares of the Company, par value $0.001 per share (the “Shares”), set forth in the Award Notice at
the price per share set forth in the Award Notice (the “Exercise Price”) (the “Option”), upon and subject to the terms and conditions set forth below, in the Award Notice and in the Plan. Capitalized terms not
defined herein shall have the meanings specified in the Plan. 
 1. Option Subject to Acceptance of Agreement. The Option shall be null and
void unless Optionee shall accept this Agreement by executing the Award Notice in the space provided therefor and returning an original execution copy of the Award Notice to the Company (or electronically accepting this Agreement within
Optionee’s stock plan account with the Company’s stock plan administrator according to the procedures then in effect). 
 2. Time and
Manner of Exercise of Option. 
 2.1. Maximum Term of Option. In no event may the Option be exercised, in whole or in part, after the
expiration date set forth in the Award Notice (the “Expiration Date”). 
 2.2. Vesting and Exercise of Option. The Option
shall become vested and exercisable in accordance with the vesting schedule set forth in the Award Notice (the “Vesting Schedule”). The Option shall be vested and exercisable following a termination of Optionee’s employment
according to the following terms and conditions: 
 (a) Termination of Employment due to Death or Disability. If Optionee’s employment
with the Company terminates by reason of Optionee’s death or termination by the Company due to Disability, then in either such case the Option shall become fully vested as of the date of termination, and the Option may thereafter be exercised
by Optionee or Optionee’s executor, administrator, legal representative, guardian or similar person until and including the earlier to occur of (i) the date which is one year after the date of termination of employment and (ii) the
Expiration Date. 
 (b) Termination of Employment Without Cause or Resignation for Good Reason. If Optionee’s employment with the Company
terminates by reason of (i) the Company’s termination of the Optionee’s employment without Cause or (ii) the Optionee’s resignation from employment for Good Reason, then in either such case the Option shall become fully
vested as of the date of termination, and the Option may thereafter be exercised by Optionee until and including the earlier to occur of (x) the date which is one year after the date of termination of employment and (y) the Expiration
Date. 

  
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 (c) Termination by the Company or by the Optionee for Any Other Reason. If Optionee’s
employment with the Company is terminated for any other reason not specified in Section 2.2(a), Section 2.2(b) or Section 2.2(d) (including by Optionee by reason of
Optionee’s resignation from employment other than for Good Reason) the unvested portion of the Option shall terminate immediately upon such termination of employment and the Option, to the extent vested on the effective date of such termination
of employment, may thereafter be exercised by Optionee until and including the earlier to occur of (i) the date which is ninety (90) days after the date of such termination of employment and (ii) the Expiration Date. 

(d) Termination by Company for Cause. If Optionee’s employment with the Company terminates by reason of the Company’s termination of
Optionee’s employment for Cause, then the Option, whether or not vested, shall terminate immediately upon such termination of employment. 
 (e)
Definitions. 
 (i) Cause. For purposes of this Option, “Cause” shall mean “Cause” as such
term is defined in any employment, consultancy, service, severance or similar agreement between the Optionee and the Company or any of its affiliates in effect on the Grant Date (but, for the avoidance of doubt, not any severance plan, practice or
arrangement), or, if there is no such agreement or no such agreement contains a definition of Cause (or a term of similar meaning, such as “good cause”), then “Cause” means the Optionee’s: (i) refusal or failure to
follow one or more written policies of the Company or any of its affiliates (collectively, the “Company Group”) (including any applicable code of conduct or ethics) that are applicable to the Optionee; (ii) conduct amounting to gross
incompetence; (iii) prolonged or chronic absence (excluding vacations, illnesses, serious health conditions or approved leaves of absence) from work, which is not authorized or excused; (iv) willful refusal or failure to perform lawful
duties, or to comply with any lawful instruction or resolution of the Board or the board of directors (or similar body) of any member of the Company Group or of the Optionee’s supervisor; (v) embezzlement, misappropriation of any property
or other asset of any member of the Company Group or misappropriation of a corporate opportunity of any member of the Company Group; (vi) offer, payment, solicitation or acceptance in violation of the policies of any member of the Company Group
or any law of any bribe, kickback or item of value with respect to the business of any member of the Company Group; (vii) indictment or commission of or the entering of a plea of nolo contendere or guilty with respect to, any felony whatsoever
or any misdemeanor involving moral turpitude; (viii) misconduct or illegal conduct which is detrimental to any member of the Company Group (including, without limitation, disparagement that materially adversely affects the reputation of the
Company Group); (ix) engagement in any unwelcome sexual advances, requests for sexual favors or any other verbal or physical abuse of a sexual nature; (x) breach of his or her obligations to any member of the Company Group under any restrictive
covenants in favor of any member of the Company Group or any unauthorized disclosure of any important and confidential information of any member of the Company Group, after written notice and a reasonable time to cure, if curable; or
(xi) unlawful use (including being under the influence) or possession of drugs illegal under applicable state law. 

  
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 (ii) Disability. For purposes of this Option, “Disability” shall
mean “Disability” as such term is defined in any employment, consultancy, service, severance or similar agreement between the Optionee and the Company or any of its affiliates in effect on the Grant Date, or, if there is no such agreement
or such agreement does not contain a definition of Disability (or a term of similar meaning), then “Disability” means the Optionee’s inability to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. 

(iii) Good Reason. For purposes of this Option, (i) “Good Reason” shall mean that the Optionee resigns from
employment with the Company and its Subsidiaries as a result of one or more of the following reasons without the consent of the Optionee: (A) the Company reduces the amount of the Optionee’s base salary or target cash bonus opportunity (it
being understood that the Board or the Committee shall have discretion to set the Company’s and the Optionee’s personal performance targets to which the cash bonus will be tied and the actual bonus paid may deviate from the target cash
bonus opportunity based on performance), (B) the Company adversely changes the Optionee’s position as in effect as of the Grant Date or reduces his/her position, authority, duties, responsibilities or status materially inconsistent with the
positions, authority, duties, responsibilities or status the Optionee holds as of the Grant Date (for the avoidance of doubt, a change in Optionee’s reporting responsibilities shall not give rise to Good Reason), or (C) the Company changes
the Optionee’s place of work to a location more than fifty (50) miles from the Optionee’s present place of work; provided, however, that the occurrence of any such condition shall not constitute Good Reason unless (x) the
Optionee provides written notice to the Company of the existence of such condition not later than 60 days after the Optionee knows or reasonably should know of the existence of such condition, (y) the Company fails to remedy such condition
within 30 days after receipt of such notice and (z) the Optionee resigns due to the existence of such condition within 60 days after the expiration of the remedial period described in clause (y) hereof. 

2.3. Method of Exercise. Subject to the limitations set forth in this Agreement, the Option, to the extent vested, may be exercised by Optionee
(i) by giving written notice to the Company specifying the number of whole Shares to be purchased and accompanying such notice with payment therefor in full (or by arranging for such payment to the Company’s satisfaction) either
(a) in cash (or cash equivalent), (b) by delivery (either actual delivery or by attestation procedures established by the Company) of Shares having a Fair Market Value, determined as of the date of exercise, equal to the aggregate purchase
price payable by reason of such exercise, (c) authorizing the Company to withhold whole Shares that would otherwise be delivered having an aggregate Fair Market Value, determined as of the date of exercise, equal to the amount necessary to
satisfy such obligation, (d) except as may be prohibited by applicable law, in cash by a broker-dealer acceptable to the Company to whom the Optionee has submitted an irrevocable notice of exercise, or (e) by a combination of (a), (b) and
(c), and (ii) by executing such documents as the Company may reasonably request. Any fraction of a Share which would be required to pay such purchase price shall be disregarded and the remaining amount due shall be paid in cash (or cash
equivalent) by Optionee. No Share or certificate representing a Share shall be issued or delivered until the full purchase price therefor and any withholding taxes thereon, as described in Section 5.1, have been paid. 

  
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 2.4. Termination of Option. In no event may the Option be exercised after it terminates as set
forth in this Section 2.4. The Option shall terminate, to the extent not earlier terminated pursuant to Section 2.2 or exercised pursuant to Section 2.3, on the Expiration
Date. Upon the termination of the Option, the Option and all rights hereunder shall immediately become null and void.    Notwithstanding anything in this Agreement to the contrary, other than upon a termination of Optionee’s
employment by the Company for Cause, if the exercise of the Option within the applicable time periods set forth in this Section 2 is prevented by the provisions of Section 5.3, the Option shall
remain exercisable until thirty (30) days after the date such exercise first would no longer be prevented by such provisions, but in no event later than the Expiration Date. 

3. Transfer Restrictions and Investment Representations. 

3.1. Nontransferability of Option. The Option may not be transferred by Optionee other than by will or the laws of descent and distribution or
pursuant to the designation of one or more beneficiaries on the form prescribed by the Company. Except to the extent permitted by the foregoing sentence, (i) during Optionee’s lifetime the Option is exercisable only by Optionee or
Optionee’s legal representative, guardian or similar person and (ii) the Option may not be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to
execution, attachment or similar process. Upon any attempt to so sell, transfer, assign, pledge, hypothecate, encumber or otherwise dispose of the Option, the Option and all rights hereunder shall immediately become null and void. 

3.2. Investment Representation. Optionee hereby represents and covenants that (a) any Shares purchased upon exercise of the Option will be
purchased for investment and not with a view to the distribution thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), unless such purchase has been registered under the Securities Act and any
applicable state securities laws; (b) any subsequent sale of any such shares shall be made either pursuant to an effective registration statement under the Securities Act and any applicable state securities laws, or pursuant to an exemption
from registration under the Securities Act and such state securities laws; and (c) if requested by the Company, Optionee shall submit a written statement, in a form satisfactory to the Company, to the effect that such representation (x) is
true and correct as of the date of any purchase of any shares hereunder or (y) is true and correct as of the date of any sale of any such shares, as applicable. As a further condition precedent to any exercise of the Option, Optionee shall
comply with all regulations and requirements of any regulatory authority having control of or supervision over the issuance or delivery of the shares and, in connection therewith, shall execute any documents which the Board or the Committee shall in
its sole discretion deem necessary or advisable. 

  
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 4. Protected Disclosures. 

4.1. Notwithstanding anything in this Agreement to the contrary, Optionee understands and agrees that nothing in this Agreement shall or shall be
construed to: 
 (a) prohibit Optionee, confidentially or otherwise, from communicating or filing a charge or complaint with,
participating in, or giving other disclosures to a governmental or regulatory entity (including, without limitation, the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the National Labor Relations Board, the
Occupational Safety and Health Administration, the Department of Justice, the Congress, any Inspector General), in each case without receiving prior authorization from, or having to disclose any such conduct to, the Company; 

(b) prohibit Optionee from responding if properly subpoenaed or otherwise required to do so under applicable law, provided that such
disclosure does not exceed the extent required by such law and Optionee promptly provides written notice of any such order to the Company within two (2) business days of receiving such order and allow the Company and its affiliates, in their
sole discretion, to seek a protective order or other appropriate remedy; 
 (c) limit Optionee’s right to receive an award for
information provided to any governmental agency, including under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; 

(d) prohibit Optionee from testifying in an administrative, legislative, or judicial proceeding regarding alleged criminal conduct or
sexual harassment when Optionee has been required or requested to attend a proceeding pursuant to court order, subpoena, or written request from an administrative agency or legislature; 

(e) prevent the disclosure of factual information relating to claims of sexual assault, sexual harassment, harassment or discrimination
based on sex, failure to prevent harassment or discrimination based on sex, or retaliation against a person for reporting an act of harassment or discrimination based on sex, as those claims are defined under the California Fair Employment and
Housing Act, to the extent the claims are filed in a civil or administrative action and to the extent such disclosures are protected by law; or 

(f) restrict or impede Optionee from discussing the terms and conditions of Optionee’s employment or otherwise exercising
Optionee’s rights under Section 8 of the National Labor Relations Act. 
 4.2. The Company hereby notifies Optionee that U.S. federal
law provides that an individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that is made (i) in confidence to a Federal, State, or local government official
(either directly or indirectly) or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law; or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under
seal. Nothing in this Agreement limits or otherwise affects any such rights or creates liability for any such protected conduct. An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose
the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual—(A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret,
except pursuant to court order. 

  
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 5. Additional Terms and Conditions. 

5.1. Withholding Taxes. (a) As a condition precedent to the issuance of Shares following the exercise of the Option, Optionee shall, upon
request by the Company, pay to the Company in addition to the purchase price of the shares, such amount as the Company may be required, under all applicable federal, state, local or other laws or regulations, to withhold and pay over as income or
other withholding taxes (the “Required Tax Payments”) with respect to such exercise of the Option. If Optionee shall fail to advance the Required Tax Payments after request by the Company, the Company may, in its discretion, deduct
any Required Tax Payments from any amount then or thereafter payable by the Company to Optionee. 
 (b) Optionee may elect to satisfy his or her
obligation to advance the Required Tax Payments by any of the following means: (i) a cash payment to the Company; (ii) delivery to the Company (either actual delivery or by attestation procedures established by the Company) of previously
owned whole Shares having an aggregate Fair Market Value, determined as of the date on which such withholding obligation arises (the “Tax Date”), equal to the Required Tax Payments; (iii) authorizing the Company to withhold whole
Shares which would otherwise be delivered to the Optionee having an aggregate Fair Market Value, determined as of the Tax Date, equal to the Required Tax Payments; (iv) to the extent permitted by applicable law, a cash payment by a
broker-dealer acceptable to the Company to whom the participant has submitted an irrevocable notice of same-day sale or (v) any combination of (i), (ii), (iii) and (iv). Shares to be delivered or withheld
may not have a Fair Market Value in excess of the minimum amount of the Required Tax Payments (or such higher withholding amount permitted by the Committee). Any fraction of a Share which would be required to satisfy any such obligation shall be
disregarded and the remaining amount due shall be paid in cash by the Holder. No Share or certificate representing a Share shall be issued or delivered until the Required Tax Payments have been satisfied in full. A determination by the Company to
satisfy the Required Tax Payments by withholding Shares shall be made by the Committee if the Optionee is subject to Section 16 of the Exchange Act. 

5.2. Adjustment. In the event of any equity restructuring (within the meaning of Financial Accounting Standards Board Accounting Standards
Codification Topic 718, Compensation—Stock Compensation) that causes the per share value of Shares to change, such as a share dividend, share split, spinoff, rights offering or recapitalization through an extraordinary dividend, the number and
class of securities subject to the Option and the Exercise Price shall be equitably adjusted by the Committee, such adjustment to be made in accordance with Section 409A of the Code. In the event of any other change in corporate capitalization,
including a merger, consolidation, reorganization, or partial or complete liquidation of the Company, such equitable adjustments described in the foregoing sentence may be made as determined to be appropriate and equitable by the Committee (or, if
the Company is not the surviving corporation in any such transaction, the board of directors of the surviving corporation) to prevent dilution or enlargement of rights of participants. The decision of the Committee regarding any such adjustment
shall be final, binding and conclusive. 

  
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 5.3. Restrictions on Grant of the Option and Issuance of Shares. The grant of the Option and the
issuance of Shares upon exercise of the Option shall be subject to compliance with all applicable requirements of federal, state or foreign law with respect to such securities. The Option may not be exercised if the issuance of Shares upon exercise
would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Shares may then be listed. In addition, the Option may not
be exercised unless (i) a registration statement under the U.S. Securities Act of 1933, as amended, shall at the time of exercise of the Option be in effect with respect to the Shares issuable upon exercise of the Option or (ii) in the
opinion of legal counsel to the Company, the Shares issuable upon exercise of the Option may be issued in accordance with the terms of an applicable exemption from the registration requirements of the U.S. Securities Act of 1933, as amended. THE
OPTIONEE IS CAUTIONED THAT THE OPTION MAY NOT BE EXERCISED UNLESS THE FOREGOING CONDITIONS ARE SATISFIED. ACCORDINGLY, THE OPTIONEE MAY NOT BE ABLE TO EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE OPTION IS VESTED. The inability of the
Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any Shares subject to the Option shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. As a condition to the exercise of the Option, the Company may require the Optionee to satisfy any qualifications that
may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company. 

5.4. Issuance or Delivery of Shares. Upon the exercise of the Option, in whole or in part, the Company shall issue or deliver, subject to the
conditions of this Agreement, the number of Shares purchased against full payment therefor. Such issuance shall be evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company. The Company
shall pay all original issue or transfer taxes and all fees and expenses incident to such issuance, except as otherwise provided in Section 5.1. 

5.5. Option Confers No Rights as Shareholder. Optionee shall not be entitled to any privileges of ownership with respect to Shares subject to
the Option unless and until such shares are purchased and issued upon the exercise of the Option, in whole or in part, and Optionee becomes a shareholder of record with respect to such issued shares. Optionee shall not be considered a shareholder of
the Company with respect to any such shares not so purchased and issued. 
 5.6. Option Confers No Rights to Continued Employment. In no event
shall the granting of the Option or its acceptance by Optionee, or any provision of this Agreement or the Plan, give or be deemed to give Optionee any right to continued employment by the Company, any Subsidiary or any affiliate of the Company or
affect in any manner the right of the Company, any Subsidiary or any affiliate of the Company to terminate the employment of any person at any time. 

5.7. Decisions of Board or Committee. The Board or the Committee shall have the right to resolve all questions which may arise in connection
with the Option or its exercise. Any interpretation, determination or other action made or taken by the Board or the Committee regarding the Plan or this Agreement shall be final, binding and conclusive. 

  
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 5.8. Successors. This Agreement shall be binding upon and inure to the benefit of any successor or
successors of the Company and any person or persons who shall, upon the death of Optionee, acquire any rights hereunder in accordance with this Agreement or the Plan. 

5.9. Notices. All notices, requests or other communications provided for in this Agreement shall be made, if to the Company, to Mavenir plc,
Attn: Legal Department, LegalNotices@Mavenir.com, and if to Optionee, to the last known mailing address of Optionee contained in the records of the Company. All notices, requests or other communications provided for in this Agreement shall be made
in writing either (a) by personal delivery, (b) by facsimile or electronic mail with confirmation of receipt, (c) by mailing in the United States mails or (d) by express courier service. The notice, request or other
communication shall be deemed to be received upon personal delivery, upon confirmation of receipt of facsimile or electronic mail transmission or upon receipt by the party entitled thereto if by United States mail or express courier service;
provided, however, that if a notice, request or other communication sent to the Company is not received during regular business hours, it shall be deemed to be received on the next succeeding business day of the Company. 

5.10. Governing Law. This Agreement, the Option and all determinations made and actions taken pursuant hereto and thereto, to the extent not
governed by the Code, shall be governed by the laws of England and Wales and construed in accordance therewith without giving effect to principles of conflicts of laws. 

5.11. Agreement Subject to the Plan. This Agreement is subject to the provisions of the Plan and shall be interpreted in accordance therewith.
In the event that the provisions of this Agreement and the Plan conflict, the Plan shall control. Optionee hereby acknowledges receipt of a copy of the Plan. 

5.12. Entire Agreement. This Agreement and the Plan constitute the entire agreement of the parties with respect to the subject matter hereof and
supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof, and may not be modified adversely to Optionee’s interest except by means of a writing signed by the Company
and Optionee. 
 5.13. Partial Invalidity. The invalidity or unenforceability of any particular provision of this Agreement shall not affect
the other provisions hereof and this Agreement shall be construed in all respects as if such invalid or unenforceable provisions were omitted. 

5.14. Amendment and Waiver. The provisions of this Agreement may be amended or waived only by the written agreement of the Company and Optionee,
and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall affect the validity, binding effect or enforceability of this Agreement. 

5.15. Counterparts. The Award Notice may be executed in two counterparts, each of which shall be deemed an original and both of which together
shall constitute one and the same instrument. 

  
 10hxl-ex101_51.htm

Exhibit 10.1

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of September 28, 2020 (the “First Amendment Closing Date”), is by and among HEXCEL CORPORATION, a Delaware corporation (the “Borrower”), the Lenders (as hereinafter defined) party hereto and CITIZENS BANK, N.A., as agent for the Lenders hereunder (in such capacity, the “Agent”).  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement (as hereinafter defined).  

 

W I T N E S S E T H

 

WHEREAS, the Borrower, certain banks and financial institutions from time to time party thereto (the “Lenders”) and the Agent are parties to that certain Credit Agreement dated as of June 20, 2019 (as amended, modified, extended, restated, replaced or supplemented from time to time, the “Credit Agreement”); and

 

WHEREAS, the Borrower and the Agent have agreed to amend certain provisions of the Credit Agreement on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

Article I
AMENDMENTS TO CREDIT AGREEMENT

1.1Amendment to Section 1.01 – Certain Defined Terms. Section 1.01 of the Credit Agreement is hereby amended by adding the following new definitions in the correct alphabetical order:

“Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK Financial Institution.

 

“Benchmark Replacement” means the sum of: (a) the alternate benchmark rate (which may include Term SOFR or another rate based on SOFR) that has been selected by the Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body and/or (ii) any evolving or then-prevailing market convention for determining a rate of interest as a replacement to the Eurodollar Rate for Dollar-denominated syndicated credit facilities and (b) the Benchmark Replacement Adjustment; provided that, if the Benchmark Replacement as so determined would be less than 0.00%, the Benchmark Replacement will be deemed to be 0.00% for the purposes of this Agreement.

 

“Benchmark Replacement Adjustment” means, with respect to any replacement of the Eurodollar Rate for Loans denominated in Dollars with an Unadjusted Benchmark Replacement for each applicable Interest Period, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Agent and the Borrower giving due consideration to: (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the Eurodollar Rate for Loans denominated in Dollars with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body and/or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method 

1

 

for calculating or determining such spread adjustment, for the replacement of the Eurodollar Rate for Loans denominated in Dollars with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated credit facilities at such time. 

“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Base Rate,” the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest and other administrative matters) that the Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Agent in a manner substantially consistent with market practice (or, if the Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as the Agent decides is reasonably necessary in connection with the administration of this Agreement).

“Benchmark Replacement Date” means the earlier to occur of the following events with respect to the Eurodollar Rate for Loans denominated in Dollars:

(1) in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of the Eurodollar Rate for Loans denominated in Dollars permanently or indefinitely ceases to provide the Eurodollar Rate for Loans denominated in Dollars; or

(2) in the case of clause (3) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein.

“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the Eurodollar Rate for Loans denominated in Dollars:

(1) a public statement or publication of information by or on behalf of the administrator of the Eurodollar Rate for Loans denominated in Dollars announcing that such administrator has ceased or will cease to provide the Eurodollar Rate for Loans denominated in Dollars, permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Eurodollar Rate for Loans denominated in Dollars;

(2) a public statement or publication of information by the regulatory supervisor for the administrator of the Eurodollar Rate, the U.S. Federal Reserve System, an insolvency official with jurisdiction over the administrator for the Eurodollar Rate, a resolution authority with jurisdiction over the administrator for the Eurodollar Rate or a court or an entity with similar insolvency or resolution authority over the administrator for the Eurodollar Rate, which states that the administrator of the Eurodollar Rate has ceased or will cease to provide the Eurodollar Rate for Loans denominated in Dollars permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Eurodollar Rate for Loans denominated in Dollars; or

(3) a public statement or publication of information by the regulatory supervisor for the administrator of the Eurodollar Rate in effect announcing that the Eurodollar Rate for Loans denominated in Dollars is no longer representative.

2

 

“Benchmark Transition Start Date” means (a) in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication) and (b) in the case of an Early Opt-in Election, the date specified by the Agent or the Required Lenders, as applicable, by notice to the Borrower, the Agent (in the case of such notice by the Required Lenders) and the Lenders.

“Benchmark Unavailability Period” means, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the Eurodollar Rate for Loans denominated in Dollars and solely to the extent that the Eurodollar Rate has not been replaced with a Benchmark Replacement, the period (x) beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the Eurodollar Rate for Loans denominated in Dollars for all purposes hereunder in accordance with Subsection 2.08(g) and (y) ending at the time that a Benchmark Replacement has replaced the Eurodollar Rate for Loans denominated in Dollars for all purposes hereunder pursuant to Subsection 2.08(g).

 

“Covenant Relief Period” means the period beginning on October 1, 2020 through and including September 30, 2021.

 

“Early Opt-in Election” means the occurrence of:

(a)(1)(a) a determination by the Agent or (b) a notification by the Required Lenders to the Agent (with a copy to the Borrower) that the Required Lenders have determined that U.S. dollar-denominated syndicated credit facilities being executed at such time, or that include language similar to that contained in Subsection 2.08(g), are being executed or amended, as applicable, to incorporate or adopt a new benchmark interest rate to replace the Eurodollar Rate for Loans denominated in Dollars, and

(2)(a) the election by the Agent or (b) the election by the Required Lenders to declare that an Early Opt-in Election has occurred and the provision, as applicable, by the Agent of written notice of such election to the Borrower and the Lenders or by the Required Lenders of written notice of such election to the Agent.

 

“Relevant Governmental Body” means the Federal Reserve Board and/or the NYFRB, or a committee officially endorsed or convened by the Federal Reserve Board and/or the NYFRB or any successor thereto.

 

“Resolution Authority” means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

 

“SOFR” means, with respect to any day, the secured overnight financing rate published for such day by the NYFRB, as the administrator of the benchmark, (or a successor administrator) on the NYFRB’s Website.

“Term SOFR” means the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.

 

3

 

“UK Financial Institution” means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended form time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

 

“UK Resolution Authority” means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

 

“Unadjusted Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

 

1.2Amendment to Definition of Applicable Commitment Fee. The definition of Applicable Commitment Fee appearing in Section 1.01 of the Credit Agreement is hereby amended and restated to  read as follows:

“Applicable Commitment Fee” means, 

(i) during the period beginning October 1, 2020 through and including the date the financial information and certificates required to be delivered pursuant to Subsection 5.01(h) for the fiscal quarter ending September 30, 2021 have been delivered to the Agent, a percentage per annum determined in accordance with the following pricing grid by reference to the Leverage Ratio; provided, that (x) the Applicable Commitment Fee shall be set at pricing level I until the date the financial information and certificates required to be delivered pursuant to Subsection 5.01(h) for the fiscal quarter ending December 31, 2020 have been delivered to the Agent, (y)  thereafter, the Leverage Ratio shall be determined as of the end of the fiscal quarter for the Borrower for which financial statements have most recently been delivered pursuant to Section 5.01(h)(i) or (ii), and (z) if the Borrower fails to deliver the financial statements required to be delivered pursuant to Section 5.01(h)(i) or (ii) within the time period specified for such delivery, then, during the period from the date such financial statements were required to have been delivered until delivery, the Applicable Commitment Fee shall be set in accordance with pricing level III:

			
	
Pricing Level
	
Leverage Ratio
	
Applicable Commitment Fee

	
I
	
≤ 4.25:1.00
	
0.225%

	
II
	
> 4.25:1.00 but ≤ 5.00:1.00
	
0.250%

	
III
	
>5.00:1.00
	
0.300%

 

and (ii) at all times other than as set forth in clause (i), a percentage per annum determined in accordance with the following pricing grid by reference to the more favorable to the Borrower of the (x) Public Debt Rating and (y) Leverage Ratio, each in effect on such date, as set forth below and subject to the Pricing Level Adjustments

 

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Pricing Level
	
Public Debt Rating
	
Leverage Ratio
	
Applicable Commitment Fee

	
I
	
A3/A- or better
	
≤ 1.50:1.00
	
0.10%

	
II
	
Baa1/BBB+
	
> 1.50:1.00 but ≤ 2.50:1.00
	
0.125%

	
III
	
Baa2/BBB
	
> 2.50:1.00 but ≤ 3.00:1.00
	
0.150%

	
IV
	
Baa3/BBB-
	
> 3.00:1.00 but ≤ 3.50:1.00
	
0.175%

	
V
	
Ba1/BB+ or lower
	
> 3.50:1.00 
	
0.225%

 

1.3Amendments to Definition of Applicable Margin. The definition of Applicable Margin appearing in Section 1.01 of the Credit Agreement is hereby amended and restated to read as follows:

“Applicable Margin” means, with respect to the Revolving Credit Facility: 

(i) during the period beginning October 1, 2020 through and including the date the financial information and certificates required to be delivered pursuant to Subsection 5.01(h) for the fiscal quarter ending September 30, 2021 have been delivered to the Agent, a percentage per annum determined in accordance with the following pricing grid by reference to the Leverage Ratio; provided, that (x) the Applicable Margin shall be set at pricing level I until the date the financial information and certificates required to be delivered pursuant to Subsection 5.01(h) for the fiscal quarter ending December 31, 2020 have been delivered to the Agent, (y) the Leverage Ratio shall be determined as of the end of the fiscal quarter for the Borrower for which financial statements have most recently been delivered pursuant to Section 5.01(h)(i) or (ii), and (z) if the Borrower fails to deliver the financial statements required to be delivered pursuant to Section 5.01(h)(i) or (ii) within the time period specified for such delivery then, during the period from the date such financial statements were required to have been delivered until delivery, the Applicable Margin shall be set in accordance with pricing level III:

				
	
Pricing Level
	
Leverage Ratio

 
	
Applicable Margin for Base Rate Revolving Credit Advances
	
Applicable Margin for Eurodollar Rate Revolving Credit Advances

	
I
	
≤ 4.25:1.00
	
0.50%
	
1.50%

	
II
	
> 4.25:1.00 but ≤ 5.00:1.00
	
0.75%
	
1.75%

	
III
	
>5.00:1.00
	
1.00%
	
2.00%

 

and (ii) at all times other than as set forth in clause (i), a percentage per annum determined in accordance with the following pricing grid by reference to the more favorable to the Borrower of the (x) Public Debt Rating and (y) Leverage Ratio, each in effect on such date, as set forth below and subject to the Pricing Level Adjustment:

 

					

5

 

					
	
Pricing Level
	
Public Debt Rating
	
Leverage Ratio

 
	
Applicable Margin for Base Rate Revolving 

Credit Advances
	
Applicable Margin for Eurodollar Rate Revolving Credit Advances

	
I
	
A3/A- or better
	
≤ 1.50:1.00
	
0.00%
	
0.875%

	
II
	
Baa1/BBB+
	
> 1.50:1.00 but ≤ 2.50:1.00
	
0.00%
	
1.00%

	
III
	
Baa2/BBB
	
> 2.50:1.00 but ≤ 3.00:1.00
	
0.125%
	
1.125%

	
IV
	
Baa3/BBB-
	
> 3.00:1.00 but ≤ 3.50:1.00
	
0.25%
	
1.25%

	
V
	
 Ba1/BB+ or lower
	
> 3.50:1.00 
	
0.50%
	
1.50%

 

1.4Amendments to Definition of Consolidated Net Income. 

(a) Clause (vi) of the definition of Consolidated Net Income appearing in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(vi) restructuring charges and reserves (to the extent not included in clause (iii) above) taken by the Borrower or its Subsidiaries; provided, that the aggregate amount of any such charges or reserves excluded pursuant to this clause (vi) (A) at any time during the Covenant Relief Period, shall relate solely to charges and reserves taken during the fiscal year ending December 31, 2020 and shall not exceed $35,000,000 during such period, and (B) at any other time, shall not exceed $10,000,000 in any fiscal year, and in each case any such amounts in excess of the $35,000,000 or $10,000,000 limits set forth in clauses (A) and (B) above in any fiscal year, as applicable, shall be included in the calculation of Consolidated Net Income for the period when such amounts are expensed, 

 

(b)  The definition of Consolidated Net Income appearing in Section 1.01 of the Credit Agreement is hereby amended by (i) deleting “and” at the end of clause (xii) thereof and replacing it with “,”, (ii) amending and restating clause (xiii) thereof in its entirety to read as follows and (iii) adding a new clause (xiv) at the end of such definition to read as follows:

 

(xiii) at any time during the Covenant Relief Period, nonrecurring cash costs, charges and expenses incurred in connection with the contemplated merger by and with Woodward, Inc. and (xiv) (to the extent not included in clauses (i) through (xiii) above), any net extraordinary gain or loss.

 

1.5Certain Definitions Amended and Restated. The definitions below appearing in Section 1.01 of the Credit Agreement are hereby amended and restated in their entirety to read as follows:

“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 (a) 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 

6

 

in the EU Bail-In Legislation Schedule and (b) the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

 

“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 (a) 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 and (b) the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

1.6Amendment to Subsection 2.08(g).  Subsection 2.08(g) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(g)Successor Eurodollar Rate.  

(i)Benchmark Replacement.  Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, the Agent and the Borrower may amend this Agreement to replace the Eurodollar Rate for Loans denominated in Dollars with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5th) Business Day after the Agent has posted such proposed amendment to all Lenders and the Borrower so long as the Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Required Lenders. Any such amendment with respect to an Early Opt-in Election will become effective on the date that Lenders comprising the Required Lenders have delivered to the Agent written notice that such Required Lenders accept such 

7

 

amendment. No replacement of the Eurodollar Rate for Loans denominated in Dollars with a Benchmark Replacement pursuant to this Subsection 2.08(g) will occur prior to the applicable Benchmark Transition Start Date.

(ii)Benchmark Replacement Conforming Changes.  In connection with the implementation of a Benchmark Replacement, the Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement.

(iii)Notices; Standards for Decisions and Determinations.  The Agent will promptly notify the Borrower and the Lenders of (i) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date and Benchmark Transition Start Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes and (iv) the commencement or conclusion of any Benchmark Unavailability Period, provided that the failure to give such notice under this clause (iv) shall not affect the commencement or conclusion of any Benchmark Unavailability Period.  Any determination, decision or election that may be made by the Agent or Lenders pursuant to this Subsection 2.08(g), including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Subsection 2.08(g).

(iv)Benchmark Unavailability Period. Upon the commencement of a Benchmark Unavailability Period, the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of Eurodollar Loans denominated in Dollars to be made, converted or continued during such Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Loans. During any Benchmark Unavailability Period, (i) the obligation of the Lenders to make or maintain Eurodollar Loans denominated in Dollars shall be suspended, (ii) any request for a Borrowing of, conversion to or continuation of Eurodollar Loans denominated in Dollars shall be ineffective and will be deemed to have been a request for a Borrowing of or conversion to Base Rate Loans, and (iii) the component of the Adjusted LIBO Rate based upon the Eurodollar Rate will not be used in any determination of Base Rate.

1.7Amendment to Subsection 5.02(a)(vii). Clause (vii) contained in Subsection 5.02(a) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(vii) Liens not otherwise permitted by this Subsection 5.02(a) securing Debt or other obligations of the Borrower and its Subsidiaries; provided that the aggregate principal amount of all such Debt and other obligations, together with any Debt incurred under Section 5.02(d)(xii), does not exceed an amount equal to (A) at any time during the Covenant Relief Period, 7.5% of Consolidated Net Tangible Assets and (B) at any other time, 25% of Consolidated Net Tangible Assets, in each case at the time of creation, incurrence or assumption of such Debt or other obligation; and

 

8

 

1.8Amendment to Subsection 5.02(d)(xii). Clause (xii) contained in Subsection 5.02(d) of the Credit Agreement is hereby amended and restated in its entirety to read as follows.

(xii) other Debt of the Borrower’s Subsidiaries that, together with the amount of Debt and other obligations secured by Liens permitted under Subsection 5.02(a)(vii), does not exceed (A) at any time during the Covenant Relief Period, 7.5% of Consolidated Net Tangible Assets and (B) at any other time, 25% of Consolidated Net Tangible Assets, in each case at the time of creation, incurrence or assumption of such Debt.

 

1.9Amendment to Section 5.02. Section 5.02 of the Credit Agreement is hereby amended to add a new clause (e) as follows:

(e)Share Repurchases.  At any time during the Covenant Relief Period, make any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the redemption, retirement, purchase, or otherwise acquisition, cancellation or termination, directly or indirectly, for consideration, of any shares of any class of the capital stock of the Borrower, or any option, warrant or other right to acquire any such capital stock, except that: 

 

(i) the Borrower may make repurchases of its capital stock (A) to the extent such repurchases do not exceed the number of shares of its capital stock issued after the First Amendment Closing Date (and not repurchased pursuant to clause (B) below) pursuant to compensation or benefit plans or agreements for directors, officers or employees of the Borrower and its Subsidiaries and any other participants under such plans and/or (B) upon the exercise, settlement, or vesting of warrants, options, stock appreciation rights, restricted stock units or other securities convertible into or exchangeable for capital stock of the Borrower, which warrants, options, stock appreciation rights, restricted stock units or other securities were issued in accordance with stock option plans or other compensation or benefit plans or agreements for directors, officers or employees of the Borrower and its Subsidiaries and any other participants under such plans in the ordinary course of business consistent with past practices;

 

(ii) the Borrower may declare and make any payments with respect to its capital stock payable solely in additional capital stock in the Borrower;

 

(iii) the Borrower may declare and make cash payments in lieu of the issuance of fractional shares of its capital stock in connection with the exercise, settlement or vesting of warrants, options, stock appreciation rights, restricted stock units or other securities convertible into or exchangeable for capital stock in the Borrower; and  

 

(iv) the Borrower may declare and make such payments pursuant to and in accordance with stock option plans or other compensation or benefit plans or agreements for directors, officers or employees of the Borrower and its Subsidiaries and any other participants under such plans in the ordinary course of business consistent with past practices.

 

1.10Amendment to Subsection 5.03(a). Subsection 5.03(a) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(a)Leverage Ratio. Maintain a ratio of (A) Consolidated Total Debt as of the last day of such Test Period; provided, that, solely with respect to any calculation of Consolidated Total 

9

 

Debt occurring at any time during the Covenant Relief Period, the aggregate amount of unrestricted cash and cash equivalents on the balance sheet of the Borrower, in an amount not to exceed $200,000,000, shall be subtracted from Consolidated Total Debt to (B) Consolidated EBITDA (such ratio, the “Leverage Ratio”) for such Test Period of not greater than: 

 

(i) at any time during the Covenant Relief Period, the ratio set forth in the table below for the applicable Test Period:

 

		
	
Test Period ended on
	
Maximum Covenant Relief Period Leverage Ratio

	
December 31, 2020
	
4.25:1.00

	
March 31, 2021
	
5.75:1.00

	
June 30, 2021
	
5.00:1.00

	
September 30, 2021
	
4.25:1.00

 

(ii)At all times other than during the Covenant Relief Period, 3.75:1.0 (the “Leverage Covenant”); provided that, at the election of the Borrower exercised by written notice to the Agent delivered at any time prior to the date that is 30 days following consummation of any Significant Acquisition by the Borrower or its Subsidiaries, the Leverage Covenant set forth in this clause (ii) shall step-up to 4.25:1.00 for each of the next four fiscal quarters ending on or after the consummation of a Significant Acquisition by the Borrower or its Subsidiaries; and 

 

1.11Amendment to Section 8.15. Section 8.15 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

Section 8.15. Acknowledgment and Consent to Bail-In of Affected Financial Institutions.   Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected 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 the applicable 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 the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected 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 Affected 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 the applicable Resolution Authority.

10

 

 

Article II
CONDITIONS TO EFFECTIVENESS

2.1Closing Conditions.  This Amendment shall become effective as of the First Amendment Closing Date upon satisfaction of the following conditions (in each case, in form and substance reasonably acceptable to the Agent):

(a)Executed Amendment.  The Agent shall have received a copy of this Amendment duly executed by the Borrower, each Lender party hereto (which, for the avoidance of doubt, constitute Required Lenders) and the Agent. 

(b)Fees and Expenses.  (i) The Agent shall have received from the Borrower (A) for the account of each of the Lenders party to this Amendment, a consent fee in an amount equal to 0.10% of the aggregate amount of each of such Lender’s Revolving Credit Commitment on the First Amendment Closing Date and (B) such other fees and expenses that are payable in connection with this Amendment as set forth in that certain fee letter entered into by the Borrower in connection herewith and (ii) King & Spalding LLP shall have received from the Borrower payment of all outstanding fees and expenses previously incurred and all fees and expenses incurred in connection with this Amendment, in the case of (i)(B) and (ii), to the extent invoiced not less than three (3) Business Days before the First Amendment Closing Date.

Article III
MISCELLANEOUS

3.1Amended Terms.  On and after the First Amendment Closing Date, all references to the Credit Agreement in each of the Loan Documents shall hereafter mean the Credit Agreement (as defined herein).  Except as specifically amended hereby or otherwise agreed, the Credit Agreement is hereby ratified and confirmed and shall remain in full force and effect according to its terms.

3.2Representations and Warranties of the Borrower.  The Borrower represents and warrants as follows:

(a)This Amendment has been duly executed and delivered by the Borrower. This Amendment is the legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles. 

 

(b)On and as of the First Amendment Closing Date, the representations and warranties contained in Section 4.01 of the Credit Agreement are true and correct in all material respects (other than any representation or warranty qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) on and as of such date, before and after giving effect to this Amendment, except to the extent any of such representations and warranties refers to an earlier date, in which case such representation and warranty shall be true and correct in all material respects (other than any representation or warranty qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) on and as of such date, before and after giving effect to this Amendment.

 

11

 

(c)On and as of the First Amendment Closing Date, no event has occurred and is continuing, or would result from the consummation of this Amendment, that constitutes a Default or Event of Default.

 

3.3Loan Document.  This Amendment shall constitute a Loan Document under the terms of the Credit Agreement.

3.4Entirety.  This Amendment and the other Loan Documents embody the entire agreement among the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof.

3.5Counterparts; Telecopy.  This Amendment may be executed in multiple counterparts, each of which shall constitute an original but all of which when taken together shall constitute one contract. Delivery of an executed signature page counterpart hereof by telecopy, emailed pdf. or any other electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart hereof. The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to any document to be signed in connection with this Amendment and the transactions contemplated hereby shall be deemed to include electronic signatures, the electronic association of signatures and records on electronic platforms, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, any other similar state laws based on the Uniform Electronic Transactions Act or the Uniform Commercial Code, each as amended, and the parties hereto hereby waive any objection to the contrary, provided that nothing herein shall require the Agent to accept electronic signature counterparts in any form or format after the date hereof.

3.6GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

3.7Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

3.8Submission to Jurisdiction; Waivers.  The jurisdiction, waiver of venue, service of process and waiver of jury trial provisions set forth in Sections 8.11 and 8.16 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

12

 

 

In Witness Whereof, the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.

BORROWER:

 

HEXCEL CORPORATION

 

By: /s/ Patrick Winterlich

Name: Patrick Winterlich

Title:  Executive Vice President and 

    Chief Financial Officer

 

 

[Signature Page to First Amendment to Credit Agreement (Hexcel)]

 

 

AGENT:

 

CITIZENS BANK, N.A.

as the Agent and a Lender

 

By: /s/ Patrick Keffer

Name: Patrick Keffer

Title:   Senior Vice President

 

[Signature Page to First Amendment to Credit Agreement (Hexcel)]

 

 

LENDERS:

 

TRUIST BANK,

as a Lender

 

By: /s/ Matthew J. Davis

Name: Matthew J. Davis

Title:   Senior Vice President

[Signature Page to First Amendment to Credit Agreement (Hexcel)]

 

 

LENDERS:

 

TD BANK, N.A.,

as a Lender

 

By: /s/ Matt Waszmer

Name: Matt Waszmer

Title:   Senior Vice President

 

[Signature Page to First Amendment to Credit Agreement (Hexcel)]

 

 

LENDERS:

 

WELLS FARGO BANK, N.A.

as a Lender

 

By: /s/ Albert Schenck

Name: Albert Schenck

Title:   Senior Vice President

[Signature Page to First Amendment to Credit Agreement (Hexcel)]

 

 

LENDERS:

 

BNP Paribas

as a Lender

 

By: /s/ Richard Pace

Name: Richard Pace

Title:   Managing Director

 

 

By: /s/ Andrew-Sebastien Aschehoug

Name: Andrew-Sebastien Aschehoug

Title:   Director

 

 

[Signature Page to First Amendment to Credit Agreement (Hexcel)]

 

 

LENDERS:

 

U.S. Bank, National Association

as a Lender

 

By: /s/ Paul F. Johnson

Name: Paul F. Johnson

Title:   Vice President

 

 

[Signature Page to First Amendment to Credit Agreement (Hexcel)]

 

 

 

LENDERS:

 

Bank of America, N.A.

as a Lender

 

By: /s/ Prathamesh Kshirsagar

Name: Prathamesh Kshirsagar

Title:   Director

 

 

[Signature Page to First Amendment to Credit Agreement (Hexcel)]

 

 

 

 

LENDERS:

 

PNC Bank, National Association

as a Lender

 

By: /s/ Garreth Boyle

Name: Garreth Boyle

Title:   Senior Vice President

 

 

[Signature Page to First Amendment to Credit Agreement (Hexcel)]

 

 

 

 

LENDERS:

 

JPMORGAN CHASE BANK, N.A.

as a Lender

 

By: /s/ Kelly Milton

Name: Kelly Milton

Title:   Executive Director

 

 

[Signature Page to First Amendment to Credit Agreement (Hexcel)]

 

 

 

 

LENDERS:

 

HSBC Bank USA, N.A.

as a Lender

 

By: /s/ Peggy Yip

Name: Peggy Yip

Title:   Vice President

 

 

[Signature Page to First Amendment to Credit Agreement (Hexcel)]

 

 

 

LENDERS:

 

Goldman Sachs Bank USA,

as a Lender

 

By: /s/ Mahesh Mohan

Name: Mahesh Mohan

Title:   Authorized Signatory

 

 

[Signature Page to First Amendment to Credit Agreement (Hexcel)]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00315-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00315-of-00352.parquet"}]]