Document:

EX-10.2

 

EXHIBIT 10.2

EXECUTION COPY

AMENDMENT NO. 1 TO THE AMENDED AND RESTATED CREDIT AGREEMENT

          AMENDMENT NO. 1 TO THE AMENDED AND RESTATED CREDIT AGREEMENT, dated as of April 24, 2008 (this
“Amendment”), by and among DRESSER-RAND GROUP INC., a Delaware corporation (the “Domestic
Borrower”), D-R HOLDINGS (FRANCE) S.A.S., a corporation organized under the laws of France (the
“French Borrower” and together with the Domestic Borrower, the “Borrowers”), the banks, financial
institutions and other lenders listed on the signature pages hereof (the “Lenders”) and CITICORP
NORTH AMERICA, INC., as administrative agent (the “Administrative Agent”).

          PRELIMINARY STATEMENTS:

          (1) The Borrowers, the lenders listed on the signature pages thereto and Citicorp North
America, Inc., as Administrative Agent, Swing Line Lender and Issuing Bank are parties to that
certain Amended and Restated Credit Agreement dated as of August 30, 2007 (the “Credit Agreement”).
Capitalized terms not otherwise defined in this Amendment have the same meanings as specified in
the Credit Agreement.

          (2) Certain Lenders and the Administrative Agent have requested that the Required Lenders
amend the Credit Agreement in accordance with Section 1 hereof, and the Required Lenders have
agreed amend the Credit Agreement, subject to the terms and conditions hereinafter set forth.

          NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the sufficiency and the receipt of which is hereby acknowledged, the parties hereto
hereby agree as follows:

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

     (a) The introductory paragraph of the Credit Agreement is hereby amended by:

	 	(i)	 	deleting the first occurrence of the word “and” following the defined term
“Joint Lead Arrangers” and inserting a comma in its place; and
	 
	 	(ii)	 	adding the following text at the end of the last line thereof immediately
before the final punctuation mark:
	 
	 	 	 	“and CITIBANK INTERNATIONAL PLC as French revolving facility lead lender (in such
capacity, the “French Revolving Facility Lead Lender”)”

     (b) Section 1.01 is hereby amended as follows:

 

 

	 	(i)	 	By inserting the following new definitions therein in the appropriate alphabetical
order:
	 
	 	 	 	““Amendment No. 1” means that certain Amendment No. 1 to this Agreement
dated as of April 24, 2008 by and among the Borrowers, the Administrative Agent
and the Lenders listed on the signature pages thereto.”
	 
	 	 	 	““Amendment No. 1 Effective Date” means the date on which the Administrative
Agent notifies the Borrowers that all conditions set forth in Section 2 of
Amendment No. 1 have been satisfied.”
	 
	 	 	 	““French Revolving Facility Lead Lender” shall have the meaning assigned to
such term in the introductory paragraph of this Agreement”
	 
	 	 	 	““Non-Qualifying French Lender” means any Lender that is not, and does not
have an Affiliate that is, a Qualifying French Lender.”
	 
	 	 	 	““Non-Qualifying French Loan Amount” means in respect of a Non-Qualifying
French Lender on the date of any Revolving Facility Borrowing by the French
Borrower, an amount equal to the Revolving Facility Loan that such
Non-Qualifying French Lender would have been required to fund in accordance
with its Revolving Facility Percentage had it been a Qualifying French Lender
on such date.”
	 
	 	 	 	““Qualifying French Lender” means a Lender or an Affiliate of a Lender
designated as a Qualifying French Lender by such Lender which is duly
authorized to carry out credit transactions in France pursuant to applicable
laws and regulations of France or the European Union.”
	 
	 	(ii)	 	The definition of “French Borrower” is hereby amended and restated in its
entirety by inserting the following language in its place:
	 
	 	 	 	““French Borrower” shall mean D-R Holdings (France) S.A.S. and any
Additional Foreign Borrower organized under the laws of France.”
	 
	 	(iii)	 	The definition of “French Obligations” is hereby amended by inserting the
words “Qualifying French” between the words “any” and “Lender”.
	 
	 	(iv)	 	The definition of “Issuing Bank” is hereby amended by inserting the following
proviso before the final punctuation mark at the end of the first sentence thereof:
	 
	 	 	 	“; provided, however, that only Qualifying French
Lenders shall be designated as Issuing Banks in respect of any request for an
issuance by the French Borrower”
	 
	 	(v)	 	The definition of “Lender” is hereby amended by adding the following
proviso at the end of definition before the final punctuation mark:

 

 

	 	 	 	“; provided that, in connection with any Revolving
Facility Borrowing by the French Borrower, the term “Lender” shall mean the
French Revolving Facility Lead Lenders and any “Qualifying French Lender”
listed on Schedule 2.01 hereof”
	 
	 	(vi)	 	The definition of “Revolving Facility Commitment” is hereby amended by
inserting the following proviso at the end of the second sentence immediately before
the final punctuation mark thereof:
	 
	 	 	 	“; provided, however, that with respect to any
Revolving Facility Loan made to a French Borrower, the Revolving Facility
Commitments of the French Revolving Facility Lead Lender will include an equal
percentage of the aggregate unused Revolving Facility Commitments of each
Non-Qualifying French Lender at the time such Revolving Facility Loan is made”
	 
	 	(vii)	 	The definition of “Revolving Facility Loan” is hereby amended by
deleting the reference to “(b)” in the second line thereof.
	 
	 	(viii)	 	The definition of “Revolving Facility Percentage” is hereby amended by adding
the following new sentence after the final punctuation mark:
	 
	 	 	 	“Notwithstanding the foregoing, the Revolving Facility Percentage of any Lender at
any time with respect to Revolving Facility Loans to the French Borrower shall
be 0% if such Lender is a Non-Qualifying French Lender.”
	 
	 	(ix)	 	The definition of “Revolving Facility Credit Exposure” is hereby
amended by (A) deleting the word “and” in the tenth line thereof and inserting a comma
in its place and (B) adding the following language after the parenthetical in the last
line thereof:
	 
	 	 	 	“and (c) with respect to each Non-Qualifying French Lender, the aggregate amount of
Non-Qualifying French Loans attributable to such Non-Qualifying French Lender
outstanding at such time (calculated in respect of Non-Qualifying French Loans
denominated in a Foreign Currency on the Equivalent thereof in Dollars at such
time).”
	 
	 	(x)	 	The following definitions are hereby deleted in their entirety, and all
references to such defined terms in the Credit Agreement shall be without effect and
disregarded:
	 
	 	 	 	““Swingline Borrowing” shall mean a Borrowing comprised of Swingline Loans.”
	 
	 	 	 	““Swingline Borrowing Request” shall mean a request by any Borrower
substantially in the form of Exhibit C-2.”

 

 

	 	 	 	““Swingline Commitment” shall mean, with respect to each Swingline Lender,
the commitment of such Swingline Lender to make Swingline Loans pursuant to
Section 2.04. The aggregate amount of the Swingline Commitments on the Closing
Date is U.S.$30.0 million.”
	 
	 	 	 	““Swingline Exposure” shall mean at any time the aggregate principal amount
of all outstanding Swingline Borrowings at such time. The Swingline Exposure
of any Revolving Facility Lender at any time shall mean its Revolving Facility
Percentage of the aggregate Swingline Exposure at such time.”
	 
	 	 	 	““Swingline Lender” shall mean Citicorp North America, Inc., in its capacity
as a lender of Swingline Loans, and/or any other Revolving Facility Lender
designated as such by the Domestic Borrower after the Closing Date that is
reasonably satisfactory to the Domestic Borrower and the Administrative Agent
and executes a counterpart to this Agreement as a Swingline Lender.”
	 
	 	 	 	““Swingline Loans” shall mean the swingline loans made to any Borrower
pursuant to Section 2.04.”
	 
	 	(c)	 	Section 2.01 of the Credit Agreement is hereby amended and restated in its entirety by
inserting the following language in its place:
	 
	 	 	 	“Subject to the terms and conditions set forth herein, (a) each Lender agrees to
make Revolving Facility Loans denominated in Dollars or in a Foreign Currency
to any Borrower (other than any French Borrower) and (b) each Qualifying French
Lender severally agrees to make Revolving Facility Loans denominated in Dollars
or Foreign Currency to any French Borrower, in each case from time to time
during the Availability Period in an aggregate principal amount that will not
result in (i) such Lender’s Revolving Facility Credit Exposure exceeding such
Lender’s Revolving Facility Commitment, (ii) the Revolving Facility Credit
Exposure exceeding the total Revolving Facility Commitments, (iii) the
Revolving Credit Exposure denominated in Euros exceeding the Equivalent in
Dollars determined on the date of delivery of the applicable Borrowing Request
of U.S.$250 million, (iv) the Revolving Credit Exposure denominated in Sterling
exceeding the Equivalent in Dollars determined on the date of delivery of the
applicable Borrowing Request of U.S.$75 million, (v) the Revolving L/C
Exposure exceeding U.S.$205 million on the Closing Date, and (vi) the French
Revolving Facility Credit Exposure exceeding the Equivalent in Dollars of
U.S.$200 million determined on the date of the delivery of the applicable
Borrowing Request or date of issuance, amendment, renewal or extension of the
applicable Letter of Credit. Within the foregoing limits and subject to the
terms and conditions set forth herein, each Borrower may borrow, prepay and
reborrow Revolving Facility Loans.”
	 
	 	(d)	 	Section 2.04 of the Credit Agreement is hereby deleted in its entirety and replaced
with the word “[RESERVED]”. All other references to Section 2.04 shall be without effect
and disregarded.

 

 

	 	(e)	 	Section 6.06(f) of the Credit Agreement is hereby amended and restated in its entirety
by inserting the following language in its place:
	 
	 	 	 	     “(f) the Domestic Borrower may repurchase, redeem or otherwise acquire or
retire for value any Equity Interests of the Domestic Borrower, provided
that the aggregate amount of such repurchases or redemptions shall not exceed (i)
in the case of each of fiscal years 2008 and 2009, the sum of fifty percent of the
Net Income of the Domestic Borrower for the immediately preceding fiscal year plus
$100 million and (ii) for any other fiscal year, fifty percent of the Net Income of
the Domestic Borrower for the immediately preceding fiscal year;”
	 
	 	(f)	 	Section 9.04(b)(i) of the Credit Agreement is hereby amended by adding the following
subclause (C):
	 
	 	 	 	     “(C) in the case of any assignment to a Non-Qualifying French Lender , the French
Revolving Lead Lender; provided that (x) any assignment to a new Non-Qualifying
French Lender shall not become effective until such Non-Qualifying French Lender shall
execute a risk participation agreement in favor of the French Revolving Lead Lender in
form and substance reasonably satisfactory to the French Revolving Lead Lender and (y)
no consent of the French Revolving Lead Lender shall be required for an assignment of a
Revolving Facility Commitment to an assignee that is a Lender immediately prior to
giving effect to such assignment.”
	 
	 	(g)	 	Section 9.08(b) of the Credit Agreement is hereby amended by:
	 
	 	(i)	 	inserting the text following text “or the French Revolving Facility
Lead Lender” immediately following the first occurrence of the defined term
“Issuing Bank” in the last paragraph thereof; and
	 
	 	(ii)	 	deleting the text “acting as such” in the final paragraph thereof and
replacing it with the following text:
	 
	 	 	 	“or the French Revolving Facility Lead Lender (in each case, acting as such)”.
	 
	 	(h)	 	Section 9.24 of the Credit Agreement is hereby amended and restated in its entirety by
inserting the following language in its place:
	 
	 	 	 	“SECTION 9.24. Matters Pertaining to the French Borrower and to any Additional
Foreign Borrower organized under the laws of France. (a) The Qualifying French Lenders as of the Closing Date represent and warrant
(i) that they are duly authorized to carry out credit transactions in France
pursuant to applicable laws and regulations of France or the European Union and (ii)
that commitments to lend to any French Borrower under this Agreement shall only be
assigned or transferred to institutions that are duly authorized to carry out credit
transactions in France, or which may legally acquire rights under loans to a French
borrower under applicable laws and regulations of France. “

 

 

	 	(i)	 	Schedule 2.01 to the Credit Agreement is hereby amended and restated in its entirety by
replacing it with the revised schedule attached hereto as Exhibit A.

     SECTION 2. Conditions of Effectiveness of Amendments. This Amendment and the amendments to the Credit Agreement set forth herein shall become
effective as of the date when, and only when, each of the following conditions shall have been
fulfilled to the satisfaction of the Administrative Agent:

(a) the Administrative Agent shall have received counterparts of this Amendment executed by
the Borrowers and the Required Lenders;

(b) the Administrative Agent shall have received a certificate signed by a duly authorized
officer of each of the Borrowers stating that: (x) the representations and warranties
contained in Article III of the Credit Agreement are true and correct in all material
respects on and as of the date of such certificate as though made on and as of such date
other than any such representations or warranties that, by their terms, refer to a date
other than the date of such certificate; and (y) no event has occurred and is continuing
that constitutes a Default or Event of Default; and

(c) the Administrative Agent shall have received an executed risk participation agreement in
form and substance reasonably satisfactory to the Administrative Agent from each
Non-Qualifying French Lender.

     SECTION 3. Reference to and Effect on the Credit Agreement and the Loan Documents.

On and after the effectiveness of this Amendment, each reference in the Credit Agreement to
“this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit
Agreement, and each reference in the other Loan Documents to “the Credit Agreement”,
“thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall
mean and be a reference to the Credit Agreement, as amended by this Amendment.

The Credit Agreement and each of the other Loan Documents, as specifically amended by this
Amendment are, and shall continue to be, in full force and effect and is hereby in all
respects ratified and confirmed.

The execution, delivery and effectiveness of this Amendment shall not, except as expressly
provided herein, operate as a waiver of any right, power or remedy of any Lender or the
Administrative Agent under any of the Loan Documents, nor constitute a
waiver of any provision of any of the Loan Documents. On and after the effectiveness of
this Amendment, this Amendment shall for all purposes constitute a Loan Document.

 

 

     SECTION 4. Execution in Counterparts. This Amendment may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute but one and the same agreement. Delivery of an
executed counterpart of a signature page to this Amendment by telecopier, facsimile or other
electronic transmission (i.e. “pdf” or “tif”) shall be effective as delivery of a manually
executed counterpart of this Amendment.

     SECTION 5. Governing Law. This Amendment shall be governed by, and construed in accordance with, the laws of the
State of New York.

[Remainder of this page intentionally left blank.]EX-10.3

 

EXHIBIT
10.3

DRESSER-RAND

          Commercial
Headquarters

          1200 West Sam Houston Parkway N.

          Houston, TX 77043

          Phone: 713-973-5377

          Fax: 713-973-5323

Vincent R.
Volpe Jr.

President & CEO

December 1, 2006

Lonnie
Arnett

Vice President, Controller and Chief Accounting Officer

Dresser-Rand

1200 W. Sam Houston Pkwy N.

Houston, Texas 77043

Dear Lonnie,

Earlier this year you received a $200,000 bonus in recognition of the
tremendous results you achieved within the corporate accounting
function since joining Dresser-Rand. And you know better than anyone,
while much has been accomplished, there is still much left to do in
meeting the remaining objectives of eliminating each of our itemized
material weaknesses.

Our
intent is to ensure that the company is making significant progress
in implementing and managing its internal control environment. It is
important to every member of the executive staff that we run our
newly public company with strict adherence to financial, electronic
systems, and human resource controls that mitigate any possibility of
poor business practices due to unethical, illegal, or simply
uninformed actions. I recognize that this will involve significant
additional work, and I believe that these results should be
appropriately rewarded.

I am
pleased to let you know that you will be eligible to receive an
additional special bonus in 2007. This bonus will have a maximum
award potential of $200,000. The bonus will be paid to you on a
pro-rata basis to the extent it is earned throughout the year. The
pro-rata payments will be based on the achievement of substantive
progress toward the elimination of the company’s material
weaknesses and the establishment of appropriate financial internal
controls. This bonus opportunity will remain the effect through the
completion of the company’s FY2007 financial audit.

You will
also be eligible to receive up to an additional $200,000 for the
achievement of a 2007 financial audit indicating that the
company’s material weaknesses have been substantially
remediated. This bonus will be paid to you in 2008, as soon as
reasonably possible following the completion of the audit to the
company’s satisfaction.

You may
elect to receive each of these bonuses in either cash or company
stock by making such election in the manner designated by the
company. The bonus amounts described in this letter are in addition
to your annual AIM program eligibility.

In
addition to the performance bonuses outlined above you will also be
eligible to receive a restricted stock grant valued at $500,000 on
February 15, 2007. The number of shares will be determined by
dividing $500,000 by the closing DRC share price on February 15,
2007. The shares would vest in three equal installments on each of
the first three anniversaries of the grant

 

 

    date. You will be provided with a grant agreement for your
    signature indicating all other details at the time of grant.

 

    Of course, receipt and payment of any of the above incentives is
    contingent on your continuing to be employed by the company both
    on the date the incentive is earned and on the date the
    incentive is paid with respect to any restricted stock. The
    grant and vesting of such restricted stock would also be subject
    to your signing the grant agreement and otherwise complying with
    the terms therein.

 

    Lonnie, once again I want to recognize, on behalf of the
    company, your terrific contributions to Dresser-Rand and to
    express my confidence in your ability to lead us through the
    necessary actions to achieve these important objectives.

 

    Best Regards,

 

    /s/ Vincent R. Volpe, Jr.

 

    Vincent R. Volpe, Jr.

 

    VRV/lb

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