Document:

ex10-1.htm

Exhibit 10.1

 

Published CUSIP Number: 14428UAA6

 

CREDIT AGREEMENT

 

Dated as of November 24, 2009

 

among

 

CARPENTER TECHNOLOGY CORPORATION,

 

and

 

CERTAIN SUBSIDIARIES

 

as Borrowers,

 

BANK OF AMERICA, N.A.,

as Administrative Agent, Swing Line Lender

and

L/C Issuer,

 

The Other Lenders Party Hereto,

 

THE BANK OF TOKYO-MITSUBISHI UFJ TRUST COMPANY

PNC BANK, NATIONAL ASSOCIATION,

and

KEYBANK NATIONAL ASSOCIATION,

each, as Documentation Agent

 

and

 

BANC OF AMERICA SECURITIES LLC,

and

J.P. MORGAN SECURITIES INC.,

as

Joint Lead Arrangers and Joint Book Managers

 

  

  

  

 

TABLE OF CONTENTS

	  	  	  	  	  
	
Section
	  	  	
Page

	  	  	  	  	  
	
ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	  	
1

	  	  	  	  	  
	
1.01
	  	
Defined Terms
	  	
1

	
1.02
	  	
Other Interpretive Provisions
	  	
26

	
1.03
	  	
Accounting Terms
	  	
27

	
1.04
	  	
Rounding
	  	
27

	
1.05
	  	
Exchange Rates; Currency Equivalents
	  	
28

	
1.06
	  	
Additional Alternative Currencies
	  	
28

	
1.07
	  	
Change of Currency
	  	
29

	
1.08
	  	
Times of Day
	  	
29

	
1.09
	  	
Letter of Credit Amounts
	  	
29

	  	  	  	  	  
	
ARTICLE II THE COMMITMENTS AND CREDIT EXTENSIONS
	  	
30

	  	  	  	  	  
	
2.01
	  	
Committed Loans
	  	
30

	
2.02
	  	
Borrowings, Conversions and Continuations of Committed Loans
	  	
30

	
2.03
	  	
Bid Loans
	  	
32

	
2.04
	  	
Letters of Credit
	  	
34

	
2.05
	  	
Swing Line Loans
	  	
44

	
2.06
	  	
Prepayments
	  	
47

	
2.07
	  	
Termination or Reduction of Commitments
	  	
48

	
2.08
	  	
Repayment of Loans
	  	
48

	
2.09
	  	
Interest
	  	
48

	
2.10
	  	
Fees
	  	
49

	
2.11
	  	
Computation of Interest and Fees
	  	
50

	
2.12
	  	
Evidence of Debt
	  	
50

	
2.13
	  	
Payments Generally; Administrative Agent’s Clawback
	  	
51

	
2.14
	  	
Sharing of Payments by Lenders
	  	
53

	
2.15
	  	
Subsidiary Borrowers
	  	
54

	
2.16
	  	
Increase in Commitments
	  	
55

	  	  	  	  	  
	
ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY
	  	
56

	  	  	  	  	  
	
3.01
	  	
Taxes
	  	
56

	
3.02
	  	
Illegality
	  	
60

	
3.03
	  	
Inability to Determine Rates
	  	
61

	
3.04
	  	
Increased Costs
	  	
61

	
3.05
	  	
Compensation for Losses
	  	
63

	
3.06
	  	
Mitigation Obligations; Replacement of Lenders
	  	
64

	
3.07
	  	
Survival
	  	
64

	  	  	  	  	  
	
ARTICLE IV CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
	  	
64

	  	  	  	  	  
	
4.01
	  	
Conditions of Initial Credit Extension
	  	
64

	
4.02
	  	
Conditions to all Credit Extensions
	  	
66

  

i

  

 

TABLE OF CONTENTS (continued)

	
Section
	  	
Page

	  	  	  	  	  
	
ARTICLE V REPRESENTATIONS AND WARRANTIES
	  	
67

	  	  	  	  	  
	
5.01
	  	
Existence, Qualification and Power; Compliance with Laws
	  	
67

	
5.02
	  	
Authorization; No Contravention
	  	
67

	
5.03
	  	
Governmental and Other Authorizations
	  	
67

	
5.04
	  	
Binding Effect
	  	
67

	
5.05
	  	
Financial Condition
	  	
68

	
5.06
	  	
Litigation
	  	
68

	
5.07
	  	
No Default
	  	
69

	
5.08
	  	
Ownership of Property; Liens
	  	
69

	
5.09
	  	
Environmental Compliance
	  	
69

	
5.10
	  	
Insurance
	  	
69

	
5.11
	  	
Taxes
	  	
69

	
5.12
	  	
ERISA and Foreign Benefit Plan Compliance
	  	
69

	
5.13
	  	
Subsidiaries
	  	
70

	
5.14
	  	
Margin Regulation; Investment Company Act
	  	
70

	
5.15
	  	
Disclosure
	  	
71

	
5.16
	  	
Intellectual Property
	  	
71

	
5.17
	  	
Compliance with Laws
	  	
71

	
5.18
	  	
Representations as to Foreign Obligors
	  	
72

	
5.19
	  	
OFAC; Anti-Terrorism Laws
	  	
72

	  	  	  	  	  
	
ARTICLE VI AFFIRMATIVE COVENANTS
	  	
73

	  	  	  	  	  
	
6.01
	  	
Information
	  	
73

	
6.02
	  	
Payment of Obligations
	  	
75

	
6.03
	  	
Preservation of Existence, Etc
	  	
76

	
6.04
	  	
Maintenance of Properties
	  	
76

	
6.05
	  	
Maintenance of Insurance
	  	
76

	
6.06
	  	
Compliance with Laws
	  	
76

	
6.07
	  	
Books and Records
	  	
76

	
6.08
	  	
Inspection Rights
	  	
76

	
6.09
	  	
Compliance with ERISA
	  	
77

	
6.10
	  	
Use of Proceeds
	  	
77

	
6.11
	  	
OFAC; PATRIOT Act Compliance
	  	
77

	  	  	  	  	  
	
ARTICLE VII NEGATIVE COVENANTS
	  	
77

	  	  	  	  	  
	
7.01
	  	
Limitation on Indebtedness
	  	
77

	
7.02
	  	
Restriction on Liens
	  	
78

	
7.03
	  	
Investments
	  	
80

	
7.04
	  	
Fundamental Changes
	  	
81

	
7.05
	  	
Dispositions
	  	
81

	
7.06
	  	
Restricted Payments
	  	
81

	
7.07
	  	
ERISA
	  	
82

	
7.08
	  	
Change in Nature of Business
	  	
82

	
7.09
	  	
Transactions with Affiliates
	  	
82

  

ii

  

 

TABLE OF CONTENTS (continued)

 

	
Section
	  	
Page

	  	  	  	  	  
	
7.10
	  	
Burdensome Agreements
	  	
82

	
7.11
	  	
Use of Proceeds
	  	
82

	
7.12
	  	
Financial Covenants
	  	
83

	  	  	  	  	  
	
ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES
	  	
83

	  	  	  	  	  
	
8.01
	  	
Events of Default
	  	
83

	
8.02
	  	
Remedies Upon Event of Default
	  	
85

	
8.03
	  	
Application of Funds
	  	
86

	  	  	  	  	  
	
ARTICLE IX ADMINISTRATIVE AGENT
	  	
87

	  	  	  	  	  
	
9.01
	  	
Appointment and Authority
	  	
87

	
9.02
	  	
Rights as a Lender
	  	
87

	
9.03
	  	
Exculpatory Provisions
	  	
87

	
9.04
	  	
Reliance by Administrative Agent
	  	
88

	
9.05
	  	
Delegation of Duties
	  	
88

	
9.06
	  	
Resignation of Administrative Agent
	  	
88

	
9.07
	  	
Non-Reliance on Administrative Agent and Other Lenders
	  	
89

	
9.08
	  	
No Other Duties, Etc
	  	
89

	
9.09
	  	
Administrative Agent May File Proofs of Claim
	  	
90

	  	  	  	  	  
	
ARTICLE X CONTINUING GUARANTY
	  	
90

	  	  	  	  	  
	
10.01
	  	
Unconditional Guarantee
	  	
90

	
10.02
	  	
Guarantee Absolute
	  	
91

	
10.03
	  	
Waivers
	  	
91

	
10.04
	  	
Subrogation
	  	
92

	
10.05
	  	
Survival
	  	
92

	
10.06
	  	
Subordination
	  	
93

	
10.07
	  	
Stay of Acceleration
	  	
93

	
10.08
	  	
Condition of Borrower
	  	
93

	  	  	  	  	  
	
ARTICLE XI MISCELLANEOUS
	  	
93

	  	  	  	  	  
	
11.01
	  	
Amendments, Etc
	  	
93

	
11.02
	  	
Notices; Effectiveness; Electronic Communication
	  	
94

	
11.03
	  	
No Waiver; Cumulative Remedies; Enforcement
	  	
97

	
11.04
	  	
Expenses; Indemnity; Damage Waiver
	  	
97

	
11.05
	  	
Payments Set Aside
	  	
99

	
11.06
	  	
Successors and Assigns
	  	
99

	
11.07
	  	
Treatment of Certain Information; Confidentiality
	  	
103

	
11.08
	  	
Right of Setoff
	  	
103

	
11.09
	  	
Interest Rate Limitation
	  	
104

	
11.10
	  	
Counterparts; Integration; Effectiveness
	  	
104

	
11.11
	  	
Survival of Representations and Warranties
	  	
104

	
11.12
	  	
Severability
	  	
104

	
11.13
	  	
Replacement of Lenders
	  	
105

  

iii

  

 

TABLE OF CONTENTS (continued)

	
Section
	  	
Page

	  	  	  	  	  
	
11.14
	  	
Governing Law; Jurisdiction; Etc
	  	
106

	
11.15
	  	
Waiver of Jury Trial
	  	
107

	
11.16
	  	
No Advisory or Fiduciary Responsibility
	  	
107

	
11.17
	  	
Electronic Execution of Assignments and Certain Other Documents
	  	
107

	
11.18
	  	
USA PATRIOT Act
	  	
108

	
11.19
	  	
Judgment Currency
	  	
108

  

iv

  

 

	
SCHEDULES
	  
	  	  	  
	
1.01
	  	
Mandatory Cost Formulae

	
2.01
	  	
Commitments and Applicable Percentages

	
5.13
	  	
Subsidiaries

	
7.01
	  	
Existing Indebtedness

	
7.02
	  	
Existing Liens

	
7.03
	  	
Existing Investments

	
11.02
	  	
Administrative Agent’s Office; Certain Addresses for Notices

	  	  	  
	
EXHIBITS
	  
	  	  	  
	
Form of

	  	  	  	  
	  	
A
	  	
Committed Loan Notice

	  	
B-1
	  	
Bid Request

	  	
B-2
	  	
Competitive Bid

	  	
C
	  	
Swing Line Loan Notice

	  	
D
	  	
Note

	  	
E
	  	
Compliance Certificate

	  	
F-1
	  	
Assignment and Assumption

	  	
F-2
	  	
Administrative Questionnaire

	  	
G
	  	
Subsidiary Borrower Request and Assumption Agreement

	  	
H
	  	
Subsidiary Borrower Notice

  

v

  

 

CREDIT AGREEMENT

 

This CREDIT AGREEMENT (“Agreement”) is entered into as of November 24, 2009, among CARPENTER TECHNOLOGY CORPORATION, a Delaware corporation (“Carpenter”), the Subsidiary Borrowers (as
hereinafter defined and, together with Carpenter, the “Borrowers” and, each a “Borrower”), each lender from time to time party hereto (collectively, the “Lenders” and individually, a “Lender”), and BANK OF
AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

Carpenter has requested that the Lenders provide a revolving credit facility, and the Lenders are willing to do so on the terms and conditions set forth herein.

 

In consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows:

 

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

 

1.01 Defined Terms. As used in this Agreement, the following terms shall have the meanings set forth below:

 

“Absolute Rate” means a fixed rate of interest expressed in multiples of 1/100th of one basis point.

 

“Absolute Rate Loan” means a Bid Loan that bears interest at a rate determined with reference to an Absolute Rate.

 

“Administrative Agent” means Bank of America in its capacity as administrative agent under any of the Loan Documents, or any successor administrative agent.

 

“Administrative Agent’s Fee Letter” means that certain letter agreement, dated as of October 27, 2009, among the Administrative Agent, Banc of America Securities LLC and Carpenter.

 

“Administrative Agent’s Office” means, with respect to any currency, the Administrative Agent’s address and, as appropriate, account as set forth on Schedule 11.02 with respect to such
currency, or such other address or account with respect to such currency as the Administrative Agent may from time to time notify to Carpenter and the Lenders.

 

“Administrative Questionnaire” means an Administrative Questionnaire in substantially the form of Exhibit F-2 or any other form approved by the Administrative Agent.

 

“Affiliate” means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

 

“Aggregate Commitments” means the Commitments of all the Lenders.  The initial amount of the Aggregate Commitment in effect on the Closing Date is $200,000,000.

 

  

1

  

 

“Agreement” means this Credit Agreement.

 

“Alternative Currency” means each of Euro, Sterling, Canadian Dollars, Krona and each other currency (other than Dollars) that is approved in accordance with Section 1.06.

 

“Alternative Currency Equivalent” means, at any time, with respect to any amount denominated in Dollars, the equivalent amount thereof in the applicable Alternative Currency as determined by the Administrative Agent or the L/C Issuer, as the case may be, at such
time on the basis of the Spot Rate (determined in respect of the most recent Revaluation Date) for the purchase of such Alternative Currency with Dollars.

 

“Applicable Foreign Obligor Documents” has the meaning specified in Section 5.18(a).

 

“Applicable Percentage” means with respect to any Lender at any time, the percentage (carried out to the ninth decimal place) of the Aggregate Commitments represented by such Lender’s Commitment at such time.  If the commitment of each Lender to
make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 8.02 or if the Aggregate Commitments have expired, then the Applicable Percentage of each Lender shall be determined based on the Applicable Percentage of such Lender most recently in effect, giving effect to any subsequent assignments.  The initial Applicable Percentage of each Lender is set forth opposite the name of
such Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable.

 

“Applicable Rate” means, from time to time, the following percentages per annum, based upon the Debt Rating as set forth below:

 

	
Applicable Rate

 

	
Pricing

Level
	
Debt Rating
	
Facility Fee
	
Eurocurrency

Rate + Letter of

Credit Fee
	
Base Rate

	
1
	
A- / A3 or better
	
0.30%
	
1.45%
	
0.45%

	 	 	 	 	 
	
2
	
BBB+ / Baa1
	
0.35%
	
1.65%
	
0.65%

	 	 	 	 	 
	
3
	
BBB / Baa2
	
0.40%
	
2.10%
	
1.10%

	 	 	 	 	 
	
4
	
BBB- / Baa3
	
0.50%
	
2.50%
	
1.50%

	 	 	 	 	 
	
5
	
BB+ / Ba1 or worse
	
0.65%
	
2.85%
	
1.85%

 

  

2

  

 

“Debt Rating” means, as of any date of determination, the rating as determined by either S&P or Moody’s (collectively, the “Debt Ratings”) of Carpenter’s non-credit-enhanced,
senior unsecured long-term debt; provided that (a) if the respective Debt Ratings issued by foregoing rating agencies differ by one level, then the Pricing Level for the higher of such Debt Ratings shall apply (with the Debt Rating for Pricing Level 1 being the highest and the Debt Rating for Pricing Level 5 being the lowest); (b) if there is a split in Debt Ratings of more than one level, then the Pricing Level that is one level higher than the
Pricing Level of the lower Debt Rating shall apply; (c) if Carpenter has only one Debt Rating, the Pricing Level that is one level lower than that of such Debt Rating shall apply; and (d) if Carpenter does not have any Debt Rating, Pricing Level 5 shall apply.

 

Initially, the Applicable Rate shall be determined based upon the Debt Rating specified in the certificate delivered pursuant to Section 4.01(a)(vii).  Thereafter, each change in the Applicable Rate resulting from a publicly announced change in the Debt Rating shall
be effective, in the case of an upgrade, during the period commencing on the date of delivery by Carpenter to the Administrative Agent of notice thereof pursuant to Section 6.01(e) (provided that in the event notice given pursuant to such Section 6.01(e) is delivered on a date that is after the date a change in the Debt Rating is publicly announced, the change in the Applicable Rate
shall be effective during the period commencing on the date the change in the Debt Rating was publicly announced if such announcement date is specified in the notice given pursuant to such Section 6.01(e)) and ending on the date immediately preceding the effective date of the next such change and, in the case of a downgrade, during the period commencing on the date of the public announcement thereof and ending on the date immediately preceding
the effective date of the next such change.

 

“Applicable Time” means, with respect to any borrowings and payments in any Alternative Currency, the local time in the place of settlement for such Alternative Currency as may be determined by the Administrative Agent or the L/C Issuer, as the case may be, to
be necessary for timely settlement on the relevant date in accordance with normal banking procedures in the place of payment.

 

“Applicant Borrower” has the meaning specified in Section 2.15.

 

“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

 

“Arrangers” means Banc of America Securities LLC and J.P. Morgan Securities Inc., in their respective capacities as joint lead arrangers and joint book managers.

 

“Assignee Group” means two or more Eligible Assignees that are Affiliates of one another or two or more Approved Funds managed by the same investment advisor.

 

“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 11.06(b)), and accepted
by the Administrative Agent, in substantially the form of Exhibit F-1 or any other form approved by the Administrative Agent.

 

  

3

  

 

“Attributable Indebtedness” means, at any date (a) in respect of any Capital Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, (b) in respect of any Synthetic
Lease Obligation of any Person, the capitalized or principal amount of the remaining payments under the relevant lease or other agreement that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease or other agreement were accounted for as a Capital Lease and (c) in respect of any Sale/Leaseback Transaction, the lesser of (i) the present value, discounted in accordance with GAAP at the debt rate implicit in the related lease, of the obligations of the lessee
for rental payments over the remaining term of such lease (including any period for which such lease has been extended or may, at the option of the lessor be extended) and (ii) the fair market value of the assets subject to such transaction.

 

“Availability Period” means the period from and including the Closing Date to the earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate Commitments pursuant to Section 2.07,
and (c) the date of termination of the commitment of each Lender to make Loans and of the obligation of the L/C Issuer to make L/C Credit Extensions pursuant to Section 8.02.

 

“Bank of America” means Bank of America, N.A. and its successors.

 

“Bankruptcy Event” means, with respect to any Person, (a) a court or governmental agency having jurisdiction in the premises shall enter a decree or order for relief in respect of such Person in an involuntary case under any Debtor Relief Law now or hereafter
in effect, or appoint a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of such Person or for any substantial part of its property or ordering the winding up or liquidation of its affairs, (b) an involuntary case under any applicable Debtor Relief Law now or hereafter in effect is commenced against such Person and such petition remains unstayed and in effect for a period of 60 consecutive days, (c) such Person shall commence a voluntary case under any applicable Debtor Relief
Law now or hereafter in effect, or consent to the entry of an order for relief in an involuntary case under any such law, or consent to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of such Person or any substantial part of its property or make any general assignment for the benefit of creditors or (d) such Person shall admit in writing its inability to pay its debts generally as they become due or any action shall be taken by such
Person in furtherance of any of the aforesaid purposes.

 

“Base Rate” means for any day a fluctuating rate per annum equal to the higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate”
and (c) except during a Eurocurrency Unavailability Period, a reference rate equal to the Eurocurrency Base Rate (for Base Rate Loans) plus 1%.  The “prime rate” is a rate set by Bank of America based upon various factors including Bank of America’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate.  Any change in such rate announced
by Bank of America shall take effect at the opening of business on the day specified in the public announcement of such change.

 

“Base Rate Committed Loan” means a Committed Loan that is a Base Rate Loan.

 

  

4

  

 

“Base Rate Loan” means a Loan that bears interest based on the Base Rate.  All Base Rate Loans shall be denominated in Dollars.

 

“Bid Borrowing” means a borrowing consisting of simultaneous Bid Loans of the same Type from each of the Lenders whose offer to make one or more Bid Loans as part of such borrowing has been accepted under the auction bidding procedures described in Section
2.03.

 

“Bid Loan” has the meaning specified in Section 2.03(a).

 

“Bid Loan Lender” means, in respect of any Bid Loan, the Lender making such Bid Loan to the Borrowers.

 

“Bid Request” means a written request for one or more Bid Loans substantially in the form of Exhibit B-1.

 

“Borrower” and “Borrowers” each has the meaning specified in the introductory paragraph hereto.

 

“Borrower Materials” has the meaning specified in Section 6.01(i).

 

“Borrowing” means a Committed Borrowing, a Bid Borrowing or a Swing Line Borrowing, as the context may require.

 

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, the state where the Administrative Agent’s Office with respect to Obligations denominated
in Dollars is located and:

 

(a) if such day relates to any interest rate settings as to a Eurocurrency Rate Loan denominated in Dollars, any fundings, disbursements, settlements and payments in Dollars in respect of any such Eurocurrency Rate
Loan, or any other dealings in Dollars to be carried out pursuant to this Agreement in respect of any such Eurocurrency Rate Loan, means any such day on which dealings in deposits in Dollars are conducted by and between banks in the London interbank eurodollar market;

 

(b) if such day relates to any interest rate settings as to a Eurocurrency Rate Loan denominated in Euro, any fundings, disbursements, settlements and payments in Euro in respect of any such Eurocurrency Rate Loan,
or any other dealings in Euro to be carried out pursuant to this Agreement in respect of any such Eurocurrency Rate Loan, means a TARGET Day;

 

(c) if such day relates to any interest rate settings as to a Eurocurrency Rate Loan denominated in a currency other than Dollars or Euro, means any such day on which dealings in deposits in the relevant currency
are conducted by and between banks in the London or other applicable offshore interbank market for such currency; and

 

(d) if such day relates to any fundings, disbursements, settlements and payments in a currency other than Dollars or Euro in respect of a Eurocurrency Rate Loan denominated in a currency other than Dollars or Euro, or any other dealings in any currency other than Dollars or Euro to be carried out
pursuant to this Agreement in respect of any such Eurocurrency Rate Loan (other than any interest rate settings), means any such day on which banks are open for foreign exchange business in the principal financial center of the country of such currency.

 

  

5

  

 

“Canadian Dollars” and “C$” mean the lawful currency of Canada.

 

“Capital Lease” of any Person means any lease of property (whether real, personal or mixed) by such Person as lessee which would, in accordance with GAAP, be required to be accounted for as a capital lease on the balance sheet of such Person.

 

“Capital Lease Obligations” means, with respect to any Person, all obligations of such Person as lessee under Capital Leases, in each case taken at the amount thereof accounted for as liabilities in accordance with GAAP.

 

“Carpenter” has the meaning specified in the introductory paragraph hereto.

 

“Carpenter’s 2009 Form 10-K” means Carpenter’s annual report on Form 10–K for the fiscal year ended June 30, 2009, as filed with the Securities and Exchange Commission pursuant to the Exchange Act.

 

“Carpenter’s Latest Form 10-Q” means Carpenter’s quarterly report on Form 10–Q for the quarter ended September 30, 2009, as filed with the Securities and Exchange Commission pursuant to the Exchange Act.

 

“Cash Collateralize” has the meaning specified in Section 2.04(g).

 

“Cash Equivalents” means:

 

(a) securities issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof (provided that the full faith and credit of the United States of America is pledged in support thereof) having
maturities of not more than twelve months from the date of acquisition;

 

(b) Dollar–denominated certificates of deposit of (A) any Lender, (B) any United States commercial bank of recognized standing having capital and surplus in excess of $500,000,000 or (C) any bank whose (or whose parent company’s) short–term commercial paper rating from S&P is at least A–1 or the equivalent
thereof or from Moody’s is at least P–1 or the equivalent thereof (any such bank being an “Approved Bank”), in each case with maturities of not more than 270 days from the date of acquisition;

 

(c) commercial paper and variable or fixed rate notes issued by any Approved Lender (or by the parent company thereof) or any variable rate notes issued by, or guaranteed by, any domestic corporation not an Affiliate of Carpenter rated A–1 (or the equivalent thereof) or better by S&P or P–1 (or the equivalent thereof)
or better by Moody’s and maturing within six months of the date of acquisition;

 

  

6

  

 

(d) repurchase agreements with a bank or trust company (including any of the Lenders) or recognized securities dealer having capital and surplus in excess of $500,000,000 for direct obligations issued by or fully guaranteed by the United States of America in which Carpenter or one or more of its Subsidiaries shall have a perfected
first priority security interest (subject to no other Liens) and having, on the date of purchase thereof, a fair market value of at least 100% of the amount of the repurchase obligations;

 

(e) Investments, classified in accordance with GAAP as current assets, in money market investment programs registered under the Investment Company Act of 1940, as amended, which are administered by reputable financial institutions having capital of at least $500,000,000 and the portfolios of which are limited to Investments of the
character described in the foregoing clauses (a) through (d); and

 

(f) without duplication, any other Marketable Securities recorded as “Cash Equivalents” on the consolidated balance sheet of Carpenter and its Consolidated Subsidiaries.

 

“Cash Management Agreement” means any agreement to provide cash management services, including treasury, depository, overdraft, credit or debit card, electronic funds transfer and other cash management arrangements.

 

“Cash Management Bank” means any Person that, at the time it enters into a Cash Management Agreement, is a Lender or an Affiliate of a Lender, in its capacity as a party to such Cash Management Agreement.

 

“Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation
or application thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or directive (whether or not having the force of law) by any Governmental Authority.

 

“Change of Control” means an event or series of events by which:

 

(a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such
plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an “option right”)), directly or indirectly, of 25% or more of the equity securities of Carpenter entitled to vote for members
of the board of directors or equivalent governing body of Carpenter on a fully-diluted basis (and taking into account all such securities that such person or group has the right to acquire pursuant to any option right); or

 

  

7

  

 

(b) during any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body of Carpenter cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent
governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body (excluding, in the case of both clause (ii)
and clause (iii), any individual whose initial nomination for, or assumption of office as, a member of that board or equivalent governing body occurs as a result of an actual solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the board of directors).

 

“Closing Date” means the first date all the conditions precedent in Section 4.01 are satisfied or waived in accordance with Section 11.01.

 

“Code” means the Internal Revenue Code of 1986.

 

“Commitment” means, as to each Lender, its obligation to (a) make Committed Loans to the Borrowers pursuant to Section 2.01, (b) purchase participations in L/C Obligations, and (c) purchase
participations in Swing Line Loans, in an aggregate principal amount at any one time outstanding not to exceed the Dollar amount set forth opposite such Lender’s name on Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement.

 

“Committed Borrowing” means a borrowing consisting of simultaneous Committed Loans of the same Type, in the same currency and, in the case of Eurocurrency Rate Loans, having the same Interest Period made by each of the Lenders pursuant to Section
2.01.

 

“Committed Loan” has the meaning specified in Section 2.01.

 

“Committed Loan Notice” means a notice of (a) a Committed Borrowing, (b) a conversion of Committed Loans from one Type to the other, or (c) a continuation of Eurocurrency Rate Loans, pursuant to Section
2.02(a), which, if in writing, shall be substantially in the form of Exhibit A.

 

“Competitive Bid” means a written offer by a Lender to make one or more Bid Loans, substantially in the form of Exhibit B-2, duly completed and signed by a Lender.

 

“Compliance Certificate” has the meaning specified in Section 6.01(c).

 

“Consolidated Capitalization” means the sum of, without duplication, (a) Consolidated Indebtedness and (b) the consolidated stockholders’ equity (determined in accordance with GAAP) of the common and preferred stockholders of Carpenter recorded on Carpenter’s
consolidated financial statements.

 

  

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“Consolidated EBITDA” means for any period the sum of (a) Consolidated Net Income for such period plus (b) an amount which, in the determination of Consolidated Net Income for such period, has been deducted for (i) Consolidated Interest Expense, (ii) provisions
for Federal, state, local and foreign income, value added and similar taxes, and (iii) depreciation, amortization (including, without limitation, amortization of goodwill and other intangibles but excluding amortization of prepaid cash expenses that were paid in a prior period) and other non–cash expense excluding any such non–cash expense to the extent that it represents amortization of a prepaid cash expense that was paid in a prior period or an accrual of, or a reserve for, cash charges or expenses
in any future period; provided that, notwithstanding the foregoing, all (A) actuarially determined non-cash retiree medical expenses equivalent to any amount that is funded under the Voluntary Employee Beneficiary Association Trust established by Carpenter pursuant to Section 501(c)(9) of the Code and (B) actuarially determined non-cash income or expense related to a Pension Plan to the extent included in the income statement
of Carpenter and its Consolidated Subsidiaries, shall be excluded from Consolidated Net Income under clause (b)(iii) above.

 

“Consolidated Indebtedness” means at any date the Indebtedness of Carpenter and its Consolidated Subsidiaries, determined on a consolidated basis as of such date.

 

“Consolidated Interest Expense” means, for any period, the total interest expense, including the interest component of all payments under Capital Lease Obligations and the implied interest component of Synthetic Lease Obligations (regardless of whether accounted
for as interest expense under GAAP), all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptances that are typically treated as interest expense in accordance with GAAP, of Carpenter and its Consolidated Subsidiaries, in each case as determined in accordance with GAAP and as determined on a consolidated basis for such period.

 

“Consolidated Net Income” means, for any period, the net income (or net loss) after taxes of Carpenter and its Consolidated Subsidiaries for such period, as determined in accordance with GAAP; provided that
there shall be excluded from the calculation of Consolidated Net Income non–operating, non–recurring gains and losses and extraordinary gains and losses of Carpenter and its Consolidated Subsidiaries; provided, further, that the net income of any Consolidated Subsidiary shall be excluded from Consolidated Net Income to the extent that the declaration or payment of dividends
or similar distributions by such Consolidated Subsidiary from such income is not at the time permitted by the terms of its charter or by-laws or any judgment, decree, order, law, statute, rule, regulation, agreement, indenture or other instrument which is binding on such Consolidated Subsidiary.

 

“Consolidated Subsidiary” means with respect to any Person at any date any Subsidiary of such Person or other entity the accounts of which would be consolidated with those of such Person in its consolidated financial statements if such statements were prepared
as of such date in accordance with GAAP.

 

“Consolidated Tangible Net Worth” means at any date the consolidated stockholders’ equity of Carpenter and its Consolidated Subsidiaries, less intangible assets and goodwill of Carpenter and its Consolidated Subsidiaries, in each case as determined in accordance
with GAAP.

 

“Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

 

  

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“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling”
and “Controlled” have meanings correlative thereto.

 

“Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit Extension.

 

“Debt to Capital Ratio” means the ratio of Consolidated Indebtedness to Consolidated Capitalization.

 

“Debt Rating” has the meaning specified in the definition of “Applicable Rate.”

 

“Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief
Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.

 

“Default” means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.

 

“Default Rate” means (a) when used with respect to Obligations other than Letter of Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if any, applicable to Base
Rate Loans plus (iii) 2% per annum; provided, however, that with respect to a Eurocurrency Rate Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Rate and any Mandatory Cost) otherwise applicable to such Loan plus 2% per annum, and (b) when used with respect to Letter
of Credit Fees, a rate equal to the Applicable Rate plus 2% per annum.

 

“Defaulting Lender” means any Lender that (a) has failed to fund any portion of the Committed Loans, participations in L/C Obligations or participations in Swing Line Loans required to be funded by it hereunder within one Business Day of the date required to be
funded by it hereunder unless such failure has been cured, (b) has otherwise failed to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within one Business Day of the date when due, unless the subject of a good faith dispute or unless such failure has been cured, (c) has been deemed insolvent or become the subject of a bankruptcy or insolvency proceeding, (d) is controlled by any entity that has been deemed insolvent or become subject to a bankruptcy
or other similar proceeding, or (e) such Lender has notified the Administrative Agent, Carpenter or any of its Subsidiaries that it does not intend to comply with its obligations under the Loan Documents.

 

“Disposition” or “Dispose” means the sale, transfer, license or other disposition (including any Sale/Leaseback Transaction) of any property by any Person, including any sale, assignment,
transfer or other disposal, with or without recourse, of any notes, accounts receivable or payment intangible or any rights or claims associated therewith.

 

  

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“Disqualified Stock” of any Person means (a) any Equity Interest of such Person which by its terms (or by the terms of any security for which it is convertible or for which it is exchangeable or exercisable), or upon the happening of any event or otherwise (including
an event which would constitute a Change of Control), (i) matures or is mandatorily redeemable or subject to any mandatory repurchase requirement, pursuant to a sinking fund or otherwise, (ii) is convertible into or exchangeable for Indebtedness or Disqualified Stock or (iii) is redeemable or subject to any repurchase requirement arising at the option of the holder thereof, in whole or in part, on or prior to the first anniversary of the Maturity Date and (b) if such Person is a Subsidiary of Carpenter, any Preferred
Stock of such Person.

 

“Dollar” and “$” mean lawful money of the United States.

 

“Dollar Equivalent” means, at any time, (a) with respect to any amount denominated in Dollars, such amount, and (b) with respect to any amount denominated in any Alternative Currency, the equivalent amount thereof in Dollars as determined by the Administrative
Agent or the L/C Issuer, as the case may be, at such time on the basis of the Spot Rate (determined in respect of the most recent Revaluation Date) for the purchase of Dollars with such Alternative Currency.

 

“Domestic Subsidiary” means any Subsidiary that is organized under the laws of any political subdivision of the United States.

 

“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 11.06(b)(iii), (v) and (vi) (subject
to such consents, if any, as may be required under Section 11.06(b)(iii)).

 

“Eligible Investments” means, as of any date of determination, the cash, Cash Equivalents and Marketable Securities which (a) are owned by Carpenter and held in banks or other financial institutions located in the United States, (b) are not subject to any Lien
and (c) collectively, have an average credit quality rated by S&P as A or better and an average maturity not greater than 365 days.

 

“EMU” means the economic and monetary union in accordance with the Treaty of Rome 1957, as amended by the Single European Act 1986, the Maastricht Treaty of 1992 and the Amsterdam Treaty of 1998.

 

“EMU Legislation” means the legislative measures of the European Council for the introduction of, changeover to or operation of a single or unified European currency.

 

“Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution
and the protection of the environment or the release of any materials into the environment, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems.

 

  

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“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of Carpenter, any other Borrower or any of their respective Subsidiaries directly
or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

 

“Equity Equivalents” means with respect to any Person any rights, warrants, options, convertible securities, exchangeable securities, indebtedness or other rights, in each case exercisable for or convertible or exchangeable into, directly or indirectly, Equity
Interests of such Person or securities exercisable for or convertible or exchangeable into Equity Interests of such Person, whether at the time of issuance or upon the passage of time or the occurrence of some future event.

 

“Equity Interests” means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital
stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares,
warrants, options, rights or other interests are outstanding on any date of determination.

 

“ERISA” means the Employee Retirement Income Security Act of 1974.

 

“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with Carpenter within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412
of the Code).

 

“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by Carpenter or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section
4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by Carpenter or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate, the treatment of a Plan amendment as a termination under Section 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer
Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon Carpenter or any ERISA Affiliate.

 

“Euro” and “EUR” mean the lawful currency of the Participating Member States introduced in accordance with the EMU Legislation.

 

  

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“Eurocurrency Base Rate” means

 

(a) for any Interest Period with respect to a Eurocurrency Rate Loan, the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other commercially available source providing quotations of BBA LIBOR as
designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for deposits in the relevant currency (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period.  If such rate is not available at such time for any reason, then the “Eurocurrency Rate” for such Interest Period shall be the rate per annum determined by the Administrative Agent
to be the rate at which deposits in the relevant currency for delivery on the first day of such Interest Period in Same Day Funds in the approximate amount of the Eurocurrency Rate Loan being made, continued or converted by Bank of America and with a term equivalent to such Interest Period would be offered by Bank of America’s London Branch (or other Bank of America branch or Affiliate) to major banks in the London or other offshore interbank market for such currency at their request at approximately 11:00
a.m. (London time) two Business Days prior to the commencement of such Interest Period; or

 

(b) for any interest rate calculation with respect to a Base Rate Loan, the rate per annum equal to (i) BBA LIBOR, at approximately 11:00 a.m., London time on the day that is two Business Days prior to the date of determination for Dollar deposits being delivered in the London interbank market for a term of one month commencing that
day or (ii) if such published rate is not available at such time for any reason, the rate determined by the Administrative Agent to be the rate at which deposits in Dollars for delivery on the date of determination in same day funds in the approximate amount of the Base Rate Loan being made, continued or converted by Bank of America and with a term equal to one month would be offered by Bank of America’s London Branch to major banks in the London interbank eurodollar market at their request at the date
and time of determination.

 

“Eurocurrency Bid Margin” means the margin above or below the Eurocurrency Base Rate to be added to or subtracted from the Eurocurrency Base Rate, which margin shall be expressed in multiples of 1/100th of one basis point.

 

“Eurocurrency Margin Bid Loan” means a Bid Loan that bears interest at a rate based upon the Eurocurrency Base Rate.

 

“Eurocurrency Rate”  means for any Interest Period with respect to a Eurocurrency Rate Loan, a rate per annum determined by the Administrative Agent pursuant to the following formula:

 

	
Eurocurrency Rate =
	
Eurocurrency Base Rate

	
1.00 - Eurocurrency Reserve Percentage

 

“Eurocurrency Rate Loan” means a Committed Loan or a Eurocurrency Margin Bid Loan that bears interest at a rate based on the Eurocurrency Rate.  Eurocurrency Rate Loans may be denominated in Dollars or in an Alternative Currency.  All Committed
Loans denominated in an Alternative Currency must be Eurocurrency Rate Loans.

 

  

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“Eurocurrency Reserve Percentage” means, for any day during any Interest Period, the reserve percentage (expressed as a decimal, carried out to five decimal places) in effect on such day, whether or not applicable to any Lender, under regulations issued from time
to time by the Board for determining the maximum reserve requirement (including any emergency, supplemental or other marginal reserve requirement) with respect to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”).  The Eurocurrency Rate for each outstanding Eurocurrency Rate Loan shall be adjusted automatically as of the effective date of any change in the Eurocurrency Reserve Percentage.

 

“Eurocurrency Unavailability Period” means any period of time during which a notice delivered to Carpenter in accordance with Section 3.03 shall remain in effect.

 

“Event of Default” has the meaning specified in Section 8.01.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor statute thereto, together with the rules and regulations promulgated thereunder.

 

“Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the L/C Issuer or any other recipient of any payment to be made by or on account of any obligation of any Borrower hereunder, (a) taxes imposed on or measured by its overall net income
(however denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the Laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable Lending Office is located, (b) any branch profits taxes imposed by the United States or any similar tax imposed by any other jurisdiction in which such Borrower is located, (c) any backup withholding tax that is required
by the Code to be withheld from amounts payable to a Lender that has failed to comply with clause (A) of Section 3.01(e)(ii), and (d) in the case of a Foreign Lender (other than an assignee pursuant to a request by Carpenter under Section 11.13), any United States withholding tax that (i) is required to be imposed on amounts payable to such Foreign Lender pursuant to the Laws in force
at the time such Foreign Lender becomes a party hereto (or designates a new Lending Office) or (ii) is attributable to such Foreign Lender’s failure or inability (other than as a result of a Change in Law) to comply with clause (B) of Section 3.01(e)(ii), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending Office (or assignment), to receive additional amounts from
such Borrower with respect to such withholding tax pursuant to Section 3.01(a)(ii) or (iii).  Notwithstanding anything to the contrary contained in this definition, “Excluded Taxes” shall not include any withholding tax imposed at any time on payments made by or on behalf of a Foreign Obligor to any Lender hereunder or under any other Loan Document, provided that
such Lender shall have complied with Section 3.01(e)(i).

 

“Existing Credit Agreement” means that certain Five-Year Revolving Credit Agreement dated as of August 31, 2005 among Carpenter, the Subsidiary Borrowers, the banks and other financial institutions from time to time party thereto as lenders and Wachovia Bank,
National Association as administrative agent.

 

  

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“Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal
Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary,
to a whole multiple of 1/100 of 1%) charged to Bank of America on such day on such transactions as determined by the Administrative Agent.

 

“Fee Letters” means, collectively, the Joint Fee Letter and the Administrative Agent’s Fee Letter.

 

“Foreign Benefit Plan” means any employee benefit plan, pension plan or welfare plan not subject to ERISA which is maintained or contributed to for the benefit of the employees of a Foreign Obligor or its Subsidiaries which, under applicable law, (a) is required
to be funded through a trust or similar funding vehicle or (b) creates or could result in a Lien on any property of such Foreign Obligor or any of its Subsidiaries.

 

“Foreign Lender” means, with respect to any Borrower, any Lender that is organized under the Laws of a jurisdiction other than that in which such Borrower is resident for tax purposes (including such a Lender when acting in the capacity of the L/C Issuer).  For
purposes of this definition, the United States, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.

 

“Foreign Obligor” means any Borrower that is incorporated or organized under the laws of a jurisdiction other than the United States, a State thereof or the District of Columbia.

 

“Foreign Subsidiary” means any Subsidiary that is organized under the laws of a jurisdiction other than the United States, a State thereof or the District of Columbia.

 

“FRB” means the Board of Governors of the Federal Reserve System of the United States.

 

“Fund” means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities.

 

“GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied.

 

“Governmental Authority” means the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

 

  

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“Guarantee” means, as to any Person, any (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation payable or performable by another Person (the “primary obligor”)
in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any
other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any assets of such Person securing any Indebtedness or other
obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien).  The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect
thereof as determined by the guaranteeing Person in good faith.  The term “Guarantee” as a verb has a corresponding meaning.

 

“Guaranteed Obligations” has the meaning specified in Section 10.01.

 

“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls,
radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law.

 

“Hedging Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price
or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by
or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”),
including any such obligations or liabilities under any Master Agreement.

 

  

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“Hedging Bank” means any Person that, at the time it enters into a Hedging Contract permitted hereunder, is a Lender or an Affiliate of a Lender, in its capacity as a party to such Hedging Contract.

 

“Indebtedness” of any Person means at any date, without duplication, (a) all obligations of such Person for borrowed money, including, without limitation, obligations for borrowed money incurred by any Person in respect of any asset securitization transaction,
(b) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (c) all obligations of such Person under conditional sale or other title retention agreements relating to property purchased by such Person to the extent of the value of such property (other than customary reservations or retentions of title under agreements with suppliers entered into in the ordinary course of business), (d) all obligations, other than intercompany items, of such Person to pay the deferred
purchase price of property or services (other than trade accounts payable arising in the ordinary course of business and not past due for more than 60 days after the date on which such trade account was created), (e) the Attributable Indebtedness of such Person in respect of Capital Lease Obligations and Synthetic Lease Obligations (regardless of whether accounted for as indebtedness under GAAP), (f) all obligations of such Person to purchase securities or other property which arise out of or in connection with
the sale of the same or substantially similar securities or property, (g) all non–contingent obligations (and, for purposes of Section 7.01 and Section 8.01(f), all contingent obligations) of such Person to reimburse any bank or other Person in respect of amounts paid under a letter of credit, bankers’ acceptance or similar instrument, (h) all Guarantees of such Person,
(i) all Disqualified Stock of such Person, (j) the net termination obligations of such Person in respect of any interest rate Hedging Contract, calculated as of any date as if such agreement or arrangement were terminated as of such date and (k) the Indebtedness of any other Person (including any partnership in which such Person is a general partner and any unincorporated joint venture in which such Person is a joint venturer) to the extent such Person would be liable therefor under applicable law or any agreement
or instrument by virtue of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such person shall not be liable therefor.

 

“Indemnified Taxes” means Taxes other than Excluded Taxes.

 

“Indemnitees” has the meaning specified in Section 11.04(b).

 

“Information” has the meaning specified in Section 11.07.

 

“Interest Coverage Ratio” means for any period the ratio of (a) Consolidated EBITDA to (b) Consolidated Interest Expense for such period.

 

“Interest Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the last day of each Interest Period applicable to such Loan and the Maturity Date; provided, however,
that if any Interest Period for a Eurocurrency Rate Loan exceeds three months, the respective dates that fall every three months after the beginning of such Interest Period shall also be Interest Payment Dates; and (b) as to any Base Rate Loan (including a Swing Line Loan), the last Business Day of each March, June, September and December and the Maturity Date.

 

  

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“Interest Period” means (a) as to each Eurocurrency Rate Loan, the period commencing on the date such Eurocurrency Rate Loan is disbursed or converted to or continued as a Eurocurrency Rate Loan and ending on the date one, two, three or six months thereafter,
as selected by Carpenter in its Committed Loan Notice or Bid Request, as the case may be and (b) as to each Absolute Rate Loan, a period of not less than 14 days and not more than 180 days as selected by the Borrower in its Bid Request; provided that:

 

(i) any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the
next preceding Business Day;

 

(ii) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at
the end of such Interest Period; and

 

(iii) no Interest Period shall extend beyond the Maturity Date.

 

“Investment” in any Person means (a) the acquisition (whether for cash, property, services, assumption of Indebtedness, securities or otherwise) of assets, shares of Capital Stock, bonds, notes, debentures, time deposits or other securities of such other Person,
(b) any deposit with, or advance, loan or other extension of credit to or for the benefit of such Person (other than deposits made in connection with the purchase of equipment or inventory in the ordinary course of business) or (c) any other capital contribution to or investment in such Person, including by way of Guarantees of any obligation of such Person, any support for a letter of credit issued on behalf of such Person incurred for the benefit of such Person or in the case of any Subsidiary of Carpenter,
any release, cancellation, compromise or forgiveness in whole or in part of any Indebtedness owing by such Subsidiary.

 

“IRS” means the United States Internal Revenue Service.

 

“ISP” means, with respect to any Letter of Credit, the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance).

 

“Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit Application, and any other document, agreement and instrument entered into by the L/C Issuer and Carpenter (or any Subsidiary) or in favor of the L/C Issuer and relating to such
Letter of Credit.

 

“Joint Fee Letter” means that certain letter agreement, dated as of October 27, 2009, among Bank of America, JPMorgan Chase Bank, NA, the Arrangers and Carpenter.

 

“Krona” and “kr” mean the lawful currency of Sweden.

 

  

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“Laws” means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof
by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law.

 

“L/C Advance” means, with respect to each Lender, such Lender’s funding of its participation in any L/C Borrowing in accordance with its Applicable Percentage.  All L/C Advances shall be denominated in Dollars.

 

“L/C Borrowing” means an extension of credit resulting from a drawing under any Letter of Credit which has not been reimbursed on the date when made or refinanced as a Committed Borrowing.  All L/C Borrowings shall be denominated in Dollars.

 

“L/C Credit Extension” means, with respect to any Letter of Credit, the issuance thereof or extension of the expiry date thereof, or the increase of the amount thereof.

 

“L/C Issuer” means Bank of America in its capacity as issuer of Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder.

 

“L/C Obligations” means, as at any date of determination, the aggregate amount available to be drawn under all outstanding Letters of Credit plus the aggregate of all Unreimbursed Amounts, including
all L/C Borrowings.  For purposes of computing the amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.09.  For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit
shall be deemed to be “outstanding” in the amount so remaining available to be drawn.

 

“Lender” has the meaning specified in the introductory paragraph hereto and, as the context requires, includes the Swing Line Lender.

 

“Lending Office” means, as to any Lender, the office or offices of such Lender described as such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify Carpenter and the Administrative Agent.

 

“Letter of Credit” means any letter of credit issued hereunder.  A Letter of Credit may be a commercial letter of credit or a standby letter of credit.  Letters of Credit may be issued in Dollars
or in an Alternative Currency.

 

“Letter of Credit Application” means an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the L/C Issuer.

 

“Letter of Credit Expiration Date” means the day that is seven days prior to the Maturity Date then in effect (or, if such day is not a Business Day, the next preceding Business Day).

 

  

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“Letter of Credit Fee” has the meaning specified in Section 2.04(i).

 

“Letter of Credit Sublimit” means an amount equal to $75,000,000.  The Letter of Credit Sublimit is part of, and not in addition to, the Aggregate Commitments.

 

“Lien” means, with respect to any asset, any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement of any kind or nature
whatsoever (including any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, and the filing of any financing statement under the Uniform Commercial Code or comparable Laws of any jurisdiction), including the interest of a purchaser of accounts receivable, chattel paper, payment intangibles or promissory notes; provided, however,
such term does not mean the grant of a security interest created in connection with merchandise delivered to Carpenter or any of its Subsidiaries on consignment until such time as any such merchandise is taken out of consignment and sold to, used and consumed by Carpenter or any of its Subsidiaries in their manufacturing processes.

 

“Loan” means an extension of credit by a Lender to a Borrower under Article II in the form of a Committed Loan, Bid Loan or a Swing Line Loan.

 

“Loan Documents” means this Agreement, each Subsidiary Borrower Request and Assumption Agreement, each Note, each Issuer Document and each Fee Letter.

 

“Mandatory Cost” means, with respect to any period, the percentage rate per annum determined in accordance with Schedule 1.01.

 

“Marketable Securities” means the U.S. Government and Government-guaranteed agency securities, U.S. Government-sponsored agency obligations, corporate debt and other obligations permitted for investment by Carpenter and all of its Wholly-Owned Subsidiaries in
the “Policy Guidelines for Short-Term Excess Cash Investments,” dated as of October 23, 2009, furnished by Carpenter to the Administrative Agent, as modified and amended from time to time and reasonably satisfactory to the Administrative Agent.

 

“Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties, liabilities (actual or contingent) or condition (financial or otherwise) of Carpenter or Carpenter and its Subsidiaries taken
as a whole; (b) a material impairment of the ability of any Borrower to perform its obligations under any Loan Document to which it is a party; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against any Borrower of any Loan Document to which it is a party; provided that, for the avoidance of doubt, the appointment of Gregory A. Pratt to serve as chairman of the board and interim chief executive officer
and president of the Borrower does not constitute a Material Adverse Effect.

 

“Maturity Date” means November 24, 2012; provided, however, that if such
date is not a Business Day, the Maturity Date shall be the next preceding Business Day.

 

“Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

 

  

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“Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which Carpenter or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated
to make contributions.

 

“Note” means a promissory note made by a Borrower in favor of a Lender evidencing Loans made by such Lender to such Borrower, substantially in the form of Exhibit D.

 

“Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties of, any Borrower arising under any Loan Document or otherwise with respect to any Loan or Letter of Credit, whether direct or indirect (including those acquired by assumption),
absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Borrower or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.

 

“OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control, and any successor thereto.

 

“Organization Documents” means, (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability
company, the certificate or articles of formation or organization and operating agreement; and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable,
any certificate or articles of formation or organization of such entity.

 

“Other Taxes” means all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made hereunder or under any other Loan Document or from the execution, delivery or enforcement of, or
otherwise with respect to, this Agreement or any other Loan Document.

 

“Outstanding Amount” means (a) with respect to Committed Loans on any date, the Dollar Equivalent amount of the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of such Committed Loans occurring
on such date; (b) with respect to Swing Line Loans on any date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of such Swing Line Loans occurring on such date; and (c) with respect to any L/C Obligations on any date, the Dollar Equivalent amount of the aggregate outstanding amount of such L/C Obligations on such date after giving effect to any L/C Credit Extension occurring on such date and any other changes in the aggregate amount of the
L/C Obligations as of such date, including as a result of any reimbursements by Carpenter of Unreimbursed Amounts.

 

  

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“Overnight Rate” means, for any day, (a) with respect to any amount denominated in Dollars, the greater of (i) the Federal Funds Rate and (ii) an overnight rate determined by the Administrative Agent, the L/C Issuer, or the Swing Line Lender, as the case may be,
in accordance with banking industry rules on interbank compensation, and (b) with respect to any amount denominated in an Alternative Currency, the rate of interest per annum at which overnight deposits in the applicable Alternative Currency, in an amount approximately equal to the amount with respect to which such rate is being determined, would be offered for such day by a branch or Affiliate of Bank of America in the applicable offshore interbank market for such currency to major banks in such interbank market.

 

“Participant” has the meaning specified in Section 11.06(d).

 

“Participating Member State” means each state so described in any EMU Legislation.

 

“Patriot Act” has the meaning specified in Section 11.18.

 

“PBGC” means the Pension Benefit Guaranty Corporation.

 

“Pension Plan” means any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by Carpenter or any ERISA Affiliate or
to which Carpenter or any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five plan years.

 

“Permitted Lien” has the meaning set forth in Section 7.02.

 

“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

 

“Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established by Carpenter or, with respect to any such plan that is subject to Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate.

 

“Platform” has the meaning specified in Section 6.01(i).

 

“Preferred Stock” means, as applied to the Equity Interests of a Person, Equity Interests of any class or classes (however designated) which is preferred as to the payment of dividends or distributions, or as to the distribution of assets upon any voluntary or
involuntary liquidation or dissolution of such Person, over the Equity Interests of any other class of such Person.

 

“Public Lender” has the meaning specified in Section 6.01(i).

 

“Purchase Money Indebtedness” means Indebtedness of Carpenter or any Subsidiary incurred for the purpose of financing all or any part of the purchase price or cost of construction or improvement of property used in the business of Carpenter or such Subsidiary.

 

“Register” has the meaning specified in Section 11.06(c).

 

  

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“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees and advisors of such Person and of such Person’s Affiliates.

 

“Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day notice period has been waived.

 

“Request for Credit Extension” means (a) with respect to a Borrowing, conversion or continuation of Committed Loans, a Committed Loan Notice, (b) with respect to a Bid Loan, a Bid Request, (c) with respect to an L/C Credit Extension, a Letter of Credit Application,
and (d) with respect to a Swing Line Loan, a Swing Line Loan Notice.

 

“Required Lenders” means, as of any date of determination, Lenders having more than 50% of the Aggregate Commitments or, if the commitment of each Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant
to Section 8.02, Lenders holding in the aggregate more than 50% of the Total Outstandings (with the aggregate amount of each Lender’s risk participation and funded participation in L/C Obligations and Swing Line Loans being deemed “held” by such Lender for purposes of this definition); provided that the Commitment of, and the portion of the Total Outstandings held
or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.

 

“Responsible Officer” means the chief executive officer, president, chief financial officer, treasurer, assistant treasurer or controller of a Borrower.  Any document delivered hereunder that is signed by a Responsible Officer of a Borrower shall be
conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Borrower and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Borrower.

 

“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any capital stock or other Equity Interest of Carpenter or any Subsidiary, or any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such capital stock or other Equity Interest, or on account of any return of capital to Carpenter’s stockholders, partners or members (or the equivalent Person thereof).

 

“Revaluation Date” means (a) with respect to any Loan, each of the following:  (i) each date of a Borrowing of a Eurocurrency Rate Loan denominated in an Alternative Currency, (ii) each date of a continuation of a Eurocurrency Rate Loan denominated in
an Alternative Currency pursuant to Section 2.02, and (iii) such additional dates as the Administrative Agent shall determine or the Required Lenders shall require; and (b) with respect to any Letter of Credit, each of the following:  (i) each date of issuance of a Letter of Credit denominated in an Alternative Currency, (ii) each date of an amendment of any such Letter of Credit having the effect of increasing the amount thereof (solely
with respect to the increased amount), (iii) each date of any payment by the L/C Issuer under any Letter of Credit denominated in an Alternative Currency and (iv) such additional dates as the Administrative Agent or the L/C Issuer shall determine or the Required Lenders shall require.

 

  

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“Sale/Leaseback Transaction” means any direct or indirect arrangement with any Person or to which any such Person is a party providing for the leasing to Carpenter or any of its Subsidiaries of any property, whether owned by Carpenter or any of its Subsidiaries
as of the Closing Date or later acquired, which has been or is to be sold or transferred by Carpenter or any of its Subsidiaries to such Person or to any other Person from whom funds have been, or are to be, advanced by such Person on the security of such property

 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. and any successor thereto.

 

“Same Day Funds” means (a) with respect to disbursements and payments in Dollars, immediately available funds, and (b) with respect to disbursements and payments in an Alternative Currency, same day or other funds as may be determined by the Administrative Agent
or the L/C Issuer, as the case may be, to be customary in the place of disbursement or payment for the settlement of international banking transactions in the relevant Alternative Currency.

 

“Sanctioned Country” shall mean a country subject to a sanctions program identified on the list maintained by OFAC and available at http://www.treas.gov/offices/eotffc/ofac/sanctions/index/html,
or as otherwise published from time to time.

“Sanctioned Person” means (a) a Person named on the list of Specially Designated Nationals or Blocked Persons maintained by OFAC available at http://www.treas.gov/offices/eotffc/ofac/sdn/index/html,
or as otherwise published from time to time, or (b) (i) an agency of the government of a Sanctioned Country, (ii) an organization controlled by a Sanctioned Country, or (iii) a Person resident in a Sanctioned Country, to the extent subject to a sanctions program administered by OFAC.

 

“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

 

“Securities Act” means the Securities Act of 1933, as amended, and any successor statute thereto, together with the rules and regulations promulgated thereunder.

 

“Special Notice Currency” means at any time an Alternative Currency, other than the currency of a country that is a member of the Organization for Economic Cooperation and Development at such time located in North America or Europe.

 

“Specified Cash Management Agreement” means any Cash Management Agreement that is entered into by and between any Borrower and any Cash Management Bank.

 

“Specified Hedge Agreement” means any  Hedging Contract permitted under this Agreement that is entered into by and between any Borrower and any Hedging Bank.

 

  

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“Specified Obligations” means all existing or future payment and other obligations owing by any Subsidiary Borrower under any Specified Cash Management Agreement or Specified Hedge Agreement.

 

 “Spot Rate” for a currency means the rate determined by the Administrative Agent or the L/C Issuer, as applicable, to be the rate quoted by the Person acting in such capacity as the spot rate for the purchase by such Person of such currency with another
currency through its principal foreign exchange trading office at approximately 11:00 a.m. on the date two Business Days prior to the date as of which the foreign exchange computation is made; provided that the Administrative Agent or the L/C Issuer may obtain such spot rate from another financial institution designated by the Administrative Agent or the L/C Issuer if the Person acting in such capacity does not have as of the date of determination
a spot buying rate for any such currency; and provided further that the L/C Issuer may use such spot rate quoted on the date as of which the foreign exchange computation is made in the case of any Letter of Credit denominated in an Alternative Currency.

 

“Sterling” and “£” mean the lawful currency of the United Kingdom.

 

“Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other
governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.  Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of Carpenter.

 

“Subsidiary Borrower” has the meaning specified in Section 2.15.

 

“Subsidiary Borrower Notice” has the meaning specified in Section 2.15.

 

“Subsidiary Borrower Request and Assumption Agreement” has the meaning specified in Section 2.15.

 

“Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant to Section 2.05.

 

“Swing Line Lender” means Bank of America in its capacity as provider of Swing Line Loans, or any successor swing line lender hereunder.

 

“Swing Line Loan” has the meaning specified in Section 2.05(a).

 

“Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to Section 2.05(b), which, if in writing, shall be substantially in the form of Exhibit
C.

 

“Swing Line Sublimit” means an amount equal to the lesser of (a) $30,000,000 and (b) the Aggregate Commitments.  The Swing Line Sublimit is part of, and not in addition to, the Aggregate Commitments.

 

  

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“Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet
of such Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment).

 

“TARGET Day” means any day on which the Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET) payment system (or, if such payment system ceases to be operative, such other payment system (if any) determined by the Administrative Agent to
be a suitable replacement) is open for the settlement of payments in Euro.

 

“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable
thereto.

 

“Total Outstandings” means the aggregate Outstanding Amount of all Loans and all L/C Obligations.

 

“Type” means (a) with respect to a Committed Loan, its character as a Base Rate Loan or a Eurodollar Rate Loan, and (b) with respect to a Bid Loan, its character as an Absolute Rate Loan or a Eurocurrency Margin Bid Loan.

 

“Unfunded Pension Liability” means the excess of a Pension Plan’s benefit liabilities under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined in accordance with the assumptions used for funding the Pension
Plan pursuant to Section 412 of the Code for the applicable plan year.

 

“United States” and “U.S.” mean the United States of America.

 

“Unreimbursed Amount” has the meaning specified in Section 2.04(c)(i).

 

“Wholly–Owned Subsidiary” means, with respect to any Person at any date, any Subsidiary of such Person all of the shares of capital stock or other ownership interests of which (except directors’ qualifying shares) are at the time directly or indirectly
owned by such Person.

 

1.02 Other Interpretive Provisions.  With
reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document:

 

(a) The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine
and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to have
the same meaning and effect as the word “shall.”  Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document (including any Organization Document) shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications
set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (iii) the words “herein,” “hereof” and “hereunder,” and words of similar import when used in any Loan Document, shall be
construed to refer to such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan Document in which such references appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending, replacing or interpreting such law and any reference to any law or regulation shall,
unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (vi) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

 

  

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(b) In the computation of periods of time from a specified date to a later specified date, the word “from” means “from
and including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means “to and including.”

 

(c) Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document.

 

1.03 Accounting Terms. (a) Generally.  All
accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing Carpenter’s 2009 Form 10-K, except as otherwise
specifically prescribed herein.

 

(b) Changes in GAAP.  If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any
Loan Document, and either Carpenter or the Required Lenders shall so request, the Administrative Agent, the Lenders and Carpenter shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders); provided that, until so amended, (i) such ratio or requirement shall
continue to be computed in accordance with GAAP prior to such change therein and (ii) Carpenter shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP.

 

1.04 Rounding.  Any financial ratios required to be maintained by the Borrower pursuant to
this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

 

  

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1.05 Exchange Rates; Currency Equivalents.  (a)  The Administrative Agent or the
L/C Issuer, as applicable, shall determine the Spot Rates as of each Revaluation Date to be used for calculating Dollar Equivalent amounts of Credit Extensions and Outstanding Amounts denominated in Alternative Currencies.  Such Spot Rates shall become effective as of such Revaluation Date and shall be the Spot Rates employed in converting any amounts between the applicable currencies until the next Revaluation Date to occur.  Except for purposes of financial statements delivered by Carpenter
hereunder or calculating financial covenants hereunder or except as otherwise provided herein, the applicable amount of any currency (other than Dollars) for purposes of the Loan Documents shall be such Dollar Equivalent amount as so determined by the Administrative Agent or the L/C Issuer, as applicable.

 

(b) Wherever in this Agreement in connection with a Borrowing, conversion, continuation or prepayment of a Eurocurrency Rate Loan or the issuance, amendment or extension of a Letter of Credit, an amount, such as a
required minimum or multiple amount, is expressed in Dollars, but such Borrowing, Eurocurrency Rate Loan or Letter of Credit is denominated in an Alternative Currency, such amount shall be the relevant Alternative Currency Equivalent of such Dollar amount (rounded to the nearest unit of such Alternative Currency, with 0.5 of a unit being rounded upward), as determined by the Administrative Agent or the L/C Issuer, as the case may be.

 

1.06 Additional Alternative Currencies.  (a)  Carpenter may from time to time request
that Eurocurrency Rate Loans be made and/or Letters of Credit be issued in a currency other than those specifically listed in the definition of “Alternative Currency;” provided that such requested currency is a lawful currency (other than Dollars) that is readily available and freely transferable and convertible into Dollars.  In the case of any such request with respect to the making of Eurocurrency Rate Loans, such request
shall be subject to the approval of the Administrative Agent (provided that such requested currency is available to each of the Lenders); and in the case of any such request with respect to the issuance of Letters of Credit, such request shall be subject to the approval of the Administrative Agent and the L/C Issuer.

 

(b) Any such request shall be made to the Administrative Agent not later than 11:00 a.m., 20 Business Days prior to the date of the desired Credit Extension (or such other time or date as may be agreed by the Administrative
Agent and, in the case of any such request pertaining to Letters of Credit, the L/C Issuer, in its or their sole discretion).  In the case of any such request pertaining to Eurocurrency Rate Loans, the Administrative Agent shall promptly notify each Lender thereof; and in the case of any such request pertaining to Letters of Credit, the Administrative Agent shall promptly notify the L/C Issuer thereof.  Each Lender (in the case of any such request pertaining to Eurocurrency Rate Loans) or
the L/C Issuer (in the case of a request pertaining to Letters of Credit) shall notify the Administrative Agent, not later than 11:00 a.m., ten Business Days after receipt of such request whether it consents, in its sole discretion, to the making of Eurocurrency Rate Loans or the issuance of Letters of Credit, as the case may be, in such requested currency.

 

  

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(c) Any failure by a Lender or the L/C Issuer, as the case may be, to respond to such request within the time period specified in the preceding sentence shall be deemed to be a refusal by such Lender or the L/C Issuer,
as the case may be, to permit Eurocurrency Rate Loans to be made or Letters of Credit to be issued in such requested currency.  If the Administrative Agent and all the Lenders consent to making Eurocurrency Rate Loans in such requested currency, the Administrative Agent shall so notify Carpenter and such currency shall thereupon be deemed for all purposes to be an Alternative Currency hereunder for purposes of any Borrowings of Eurocurrency Rate Loans; and if the Administrative Agent and the L/C Issuer
consent to the issuance of Letters of Credit in such requested currency, the Administrative Agent shall so notify Carpenter and such currency shall thereupon be deemed for all purposes to be an Alternative Currency hereunder for purposes of any Letter of Credit issuances.  If the Administrative Agent shall fail to obtain consent to any request for an additional currency under this Section 1.06, the Administrative Agent shall promptly so
notify Carpenter.

 

1.07 Change of Currency.  (a)  Each obligation of the Borrowers to make a payment
denominated in the national currency unit of any member state of the European Union that adopts the Euro as its lawful currency after the date hereof shall be redenominated into Euro at the time of such adoption (in accordance with the EMU Legislation).  If, in relation to the currency of any such member state, the basis of accrual of interest expressed in this Agreement in respect of that currency shall be inconsistent with any convention or practice in the London interbank market for the basis of
accrual of interest in respect of the Euro, such expressed basis shall be replaced by such convention or practice with effect from the date on which such member state adopts the Euro as its lawful currency; provided that if any Borrowing in the currency of such member state is outstanding immediately prior to such date, such replacement shall take effect, with respect to such Borrowing, at the end of the then current Interest Period.

 

(b) Each provision of this Agreement shall be subject to such reasonable changes of construction as the Administrative Agent may from time to time specify to be appropriate to reflect the adoption of the Euro by any member state of the
European Union and any relevant market conventions or practices relating to the Euro.

 

(c) Each provision of this Agreement also shall be subject to such reasonable changes of construction as the Administrative Agent may from time to time specify to be appropriate to reflect a change in currency of
any other country and any relevant market conventions or practices relating to the change in currency.

 

1.08 Times of Day.  Unless otherwise
specified, all references herein to times of day shall be references to Eastern time (daylight or standard, as applicable).

 

1.09 Letter of Credit Amounts.  Unless otherwise specified herein, the amount of a Letter
of Credit at any time shall be deemed to be the Dollar Equivalent of the stated amount of such Letter of Credit in effect at such time; provided, however, that with respect to any Letter of Credit that, by its terms or the terms of any Issuer Document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall
be deemed to be the Dollar Equivalent of the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.

 

  

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ARTICLE II

THE COMMITMENTS AND CREDIT EXTENSIONS

 

2.01 Committed Loans.  Subject to the terms and conditions set forth herein, each Lender severally
agrees to make loans (each such loan, a “Committed Loan”) to the Borrowers in Dollars or in one or more Alternative Currencies from time to time, on any Business Day during the Availability Period, in an aggregate amount not to exceed at any time outstanding the amount of such Lender’s Commitment; provided, however,
that after giving effect to any Committed Borrowing, (i) the Total Outstandings shall not exceed the Aggregate Commitments, and (ii) the aggregate Outstanding Amount of the Committed Loans of any Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing
Line Loans shall not exceed such Lender’s Commitment.  Within the limits of each Lender’s Commitment, and subject to the other terms and conditions hereof, the Borrowers may borrow under this Section 2.01, prepay under Section 2.06, and reborrow under this Section 2.01.  Committed Loans
may be Base Rate Loans or Eurocurrency Rate Loans, as further provided herein.

 

2.02 Borrowings, Conversions and Continuations of Committed Loans.

 

(a) Each Committed Borrowing, each conversion of Committed Loans from one Type to the other, and each continuation of Eurocurrency Rate Loans shall be made upon Carpenter’s irrevocable notice to the Administrative Agent, which may be given by telephone.  Each such notice
must be received by the Administrative Agent not later than 11:00 a.m. (i) three Business Days prior to the requested date of any Borrowing of, conversion to or continuation of Eurocurrency Rate Loans denominated in Dollars or of any conversion of Eurocurrency Rate Loans denominated in Dollars to Base Rate Committed Loans, (ii) four Business Days (or five Business Days in the case of a Special Notice Currency) prior to the requested date of any Borrowing or continuation of Eurocurrency Rate Loans denominated
in Alternative Currencies, and (iii) on the requested date of any Borrowing of Base Rate Committed Loans.  Each telephonic notice by Carpenter pursuant to this Section 2.02(a) must be confirmed promptly by delivery to the Administrative Agent of a written Committed Loan Notice, appropriately completed and signed by a Responsible Officer of Carpenter.  Each Borrowing of, conversion to or continuation of Eurocurrency Rate Loans
shall be in a principal amount of $2,000,000 or a whole multiple of $1,000,000 in excess thereof.  Except as provided in Sections 2.04(c) and 2.05(c), each Committed Borrowing of or conversion to Base Rate Committed Loans shall be in a principal amount of $1,000,000 or a whole multiple of $100,000 in excess thereof.  Each Committed Loan Notice (whether telephonic
or written) shall specify (i) whether Carpenter is requesting a Committed Borrowing, a conversion of Committed Loans from one Type to the other, or a continuation of Eurocurrency Rate Loans, (ii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Committed Loans to be borrowed, converted or continued, (iv) the Type of Committed Loans to be borrowed or to which existing Committed Loans are to be converted, (v) if applicable,
the duration of the Interest Period with respect thereto, (vi) the currency of the Committed Loans to be borrowed, and (vii) if applicable, the Subsidiary Borrower.  If Carpenter fails to specify a currency in a Committed Loan Notice requesting a Borrowing, then the Committed Loans so requested shall be made in Dollars.  If Carpenter fails to specify a Type of Committed Loan in a Committed Loan Notice or if Carpenter fails to give a timely notice requesting a conversion or continuation, then
the applicable Committed Loans shall be made as, or converted to, Base Rate Loans; provided, however, that in the case of a failure to timely request a continuation of Committed Loans denominated in an Alternative Currency, such Loans shall be continued as Eurocurrency Rate Loans in their original currency with an Interest Period of one month.  Any automatic conversion to
Base Rate Loans shall be effective as of the last day of the Interest Period then in effect with respect to the applicable Eurocurrency Rate Loans.  If Carpenter requests a Borrowing of, conversion to, or continuation of Eurocurrency Rate Loans in any such Committed Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one month.  No Committed Loan may be converted into or continued as a Committed Loan denominated in a different currency,
but instead must be prepaid in the original currency of such Committed Loan and reborrowed in the other currency.

 

  

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(b) Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly notify each Lender of the amount (and currency) of its Applicable Percentage of the applicable Committed Loans, and if no timely
notice of a conversion or continuation is provided by Carpenter, the Administrative Agent shall notify each Lender of the details of any automatic conversion to Base Rate Loans or continuation of Committed Loans denominated in a currency other than Dollars, in each case as described in the preceding subsection.  In the case of a Committed Borrowing, each Lender shall make the amount of its Committed Loan available to the Administrative Agent in Same Day Funds at the Administrative Agent’s Office
for the applicable currency not later than 1:00 p.m., in the case of any Committed Loan denominated in Dollars, and not later than the Applicable Time specified by the Administrative Agent in the case of any Committed Loan in an Alternative Currency, in each case on the Business Day specified in the applicable Committed Loan Notice.  Upon satisfaction of the applicable conditions set forth in Section 4.02 (and, if such Borrowing is the
initial Credit Extension, Section 4.01), the Administrative Agent shall make all funds so received available to Carpenter or the other applicable Borrower in like funds as received by the Administrative Agent either by (i) crediting the account of such Borrower on the books of Bank of America with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to)
the Administrative Agent by Carpenter; provided, however, that if, on the date the Committed Loan Notice with respect to such Borrowing denominated in Dollars is given by Carpenter, there are L/C Borrowings outstanding, then the proceeds of such Borrowing, first, shall be applied to the payment in full of any such L/C
Borrowings, and, second, shall be made available to the applicable Borrower as provided above.

 

(c) Except as otherwise provided herein, a Eurocurrency Rate Loan may be continued or converted only on the last day of an Interest Period for such Eurocurrency Rate Loan.  During the existence of a Default,
no Loans may be requested as, converted to or continued as Eurocurrency Rate Loans (whether in Dollars or any Alternative Currency) without the consent of the Required Lenders, and the Required Lenders may demand that any or all of the then outstanding Eurocurrency Rate Loans denominated in an Alternative Currency be prepaid, or redenominated into Dollars in the amount of the Dollar Equivalent thereof, on the last day of the then current Interest Period with respect thereto.

 

(d) The Administrative Agent shall promptly notify Carpenter and the Lenders of the interest rate applicable to any Interest Period for Eurocurrency Rate Loans upon determination of such interest rate.  At
any time that Base Rate Loans are outstanding, the Administrative Agent shall notify Carpenter and the Lenders of any change in Bank of America’s prime rate used in determining the Base Rate promptly following the public announcement of such change.

 

  

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(e) After giving effect to all Committed Borrowings, all conversions of Committed Loans from one Type to the other, and all continuations of Committed Loans as the same Type, there
shall not be more than ten Interest Periods in effect with respect to Committed Loans.

 

2.03 Bid Loans

 

(a) General.  Subject to the terms and conditions set forth
herein, each Lender agrees that Carpenter may from time to time request the Lenders to submit offers to make loans (each such loan, a “Bid Loan”) to Carpenter prior to the Maturity Date pursuant to this Section 2.03; provided, however,
that after giving effect to any Bid Borrowing, the Total Outstandings shall not exceed the Aggregate Commitments.  There shall not be more than six different Interest Periods in effect with respect to Bid Loans at any time.

 

(b) Requesting Competitive Bids.  Carpenter may request the submission of Competitive Bids by delivering a Bid Request to each of the Lenders
(with a copy to the Administrative Agent) not later than 12:00 noon (i) one Business Day prior to the requested date of any Bid Borrowing that is to consist of Absolute Rate Loans, or (ii) four Business Days prior to the requested date of any Bid Borrowing that is to consist of Eurocurrency Margin Bid Loans.  Each Bid Request shall specify (A) the requested date of the Bid Borrowing (which shall be a Business Day), (B) the aggregate principal amount of Bid Loans requested (which must be $2,000,000 or
a whole multiple of $1,000,000 in excess thereof), (C) the Type of Bid Loans requested, (D) the duration of the Interest Period with respect thereto and (E) the currency of the Bid Loans requested, and shall be signed by a Responsible Officer of Carpenter.  No Bid Request shall contain a request for (y) more than one Type of Bid Loan or (z) Bid Loans having more than three different Interest Periods.  Unless the Administrative Agent otherwise agrees in its sole and absolute discretion, Carpenter
may not submit a Bid Request if it has submitted another Bid Request within the prior five Business Days.

 

(c) Submitting Competitive Bids.

 

(i) Each Lender may (but shall have no obligation to) submit a Competitive Bid containing an offer to make one or more Bid Loans in response to such Bid Request.  Such Competitive Bid must be delivered directly to Carpenter (with a copy to the
Administrative Agent) not later than 10:30 a.m. (A) on the requested date of any Bid Borrowing that is to consist of Absolute Rate Loans, and (B) three Business Days prior to the requested date of any Bid Borrowing that is to consist of Eurocurrency Margin Bid Loans; provided, however, that any Competitive Bid submitted by Bank of America in its capacity as a Lender in response to
any Bid Request must be submitted directly to Carpenter (with a copy to the Administrative Agent) not later than 10:15 a.m. on the date on which Competitive Bids are required to be delivered by the other Lenders in response to such Bid Request.  Each Competitive Bid shall specify (A) the proposed date of the Bid Borrowing; (B) the principal amount of each Bid Loan for which such Competitive Bid is being made, which principal amount (x) may be equal to, greater than or less than the Commitment of the
bidding Lender, (y) must be $2,000,000 or a whole multiple of $1,000,000 in excess thereof, and (z) may not exceed the principal amount of Bid Loans for which Competitive Bids were requested; (C) if the proposed Bid Borrowing is to consist of Absolute Rate Bid Loans, the Absolute Rate offered for each such Bid Loan and the Interest Period applicable thereto; (D) if the proposed Bid Borrowing is to consist of Eurocurrency Margin Bid Loans, the Eurocurrency Bid Margin with respect to each such Eurocurrency Margin
Bid Loan and the Interest Period applicable thereto; and (E) the identity of the bidding Lender.

 

  

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(ii) Any Competitive Bid shall be disregarded if it (A) is received after the applicable time specified in clause (ii) above, (B) is not substantially in the form of a Competitive Bid as specified
herein, (C) contains qualifying, conditional or similar language, (D) proposes terms other than or in addition to those set forth in the applicable Bid Request, or (E) is otherwise not responsive to such Bid Request.  Any Lender may correct a Competitive Bid containing a manifest error by submitting a corrected Competitive Bid (identified as such) not later than the applicable time required for submission of Competitive Bids.  Any such submission of a corrected Competitive Bid shall constitute
a revocation of the Competitive Bid that contained the manifest error.  The Administrative Agent may, but shall not be required to, notify any Lender of any manifest error it detects in such Lender’s Competitive Bid.

 

(iii) Subject only to the provisions of Sections 3.02, 3.03 and 4.02 and
clause (iii) above, each Competitive Bid shall be irrevocable.

 

(d) Notice to Carpenter of Competitive Bids.  Not later than 11:30 a.m. (i) on the requested date of any Bid Borrowing
that is to consist of Absolute Rate Loans, or (ii) three Business Days prior to the requested date of any Bid Borrowing that is to consist of Eurocurrency Margin Bid Loans, Carpenter shall notify the Lenders (with a copy to the Administrative Agent) of the identity of each Lender that has submitted a Competitive Bid that complies with Section 2.03(c) and of the terms of the offers contained in each such Competitive Bid.

 

(e) Acceptance of Competitive Bids.  Not later than 12:30 p.m. (i) on the requested date of any Bid Borrowing that is to
consist of Absolute Rate Loans, and (ii) three Business Days prior to the requested date of any Bid Borrowing that is to consist of Eurocurrency Margin Bid Loans, Carpenter shall notify the Lenders (with a copy to the Administrative Agent) of its acceptance or rejection of the offers notified to it pursuant to Section 2.03(d).  Carpenter shall be under no obligation to accept any Competitive Bid and may choose to reject all Competitive
Bids.  In the case of acceptance, such notice shall specify the aggregate principal amount of Competitive Bids for each Interest Period that is accepted.  Carpenter may accept any Competitive Bid in whole or in part; provided that:

 

(i) the aggregate principal amount of each Bid Borrowing may not exceed the applicable amount set forth in the related Bid Request;

 

(ii) the principal amount of each Bid Loan must be $2,000,000 or a whole multiple of $1,000,000 in excess thereof;

 

  

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    (iii) the acceptance of offers may be made
only on the basis of ascending Absolute Rates or Eurocurrency Bid Margins within each Interest Period; and

 

    (iv) Carpenter may not
accept any offer that is described in Section 2.03(c)(iii) or that otherwise fails to comply with the requirements hereof.

 

    (f) Procedure
for Identical Bids.  If two or more Lenders have submitted Competitive Bids at the same Absolute Rate or Eurocurrency Bid Margin, as the case may be, for the same Interest Period, and the result of accepting all of such Competitive Bids in whole (together with any other Competitive Bids at lower Absolute Rates or Eurocurrency Bid Margins, as the case may be, accepted for such Interest Period in conformity with the requirements of Section
2.03(e)(iii)) would be to cause the aggregate outstanding principal amount of the applicable Bid Borrowing to exceed the amount specified therefor in the related Bid Request, then, unless otherwise agreed by Carpenter, the Administrative Agent and such Lenders, such Competitive Bids shall be accepted as nearly as possible in proportion to the amount offered by each such Lender in respect of such Interest Period, with such accepted amounts being rounded to the nearest whole multiple of $1,000,000.

 

    (g) Notice
to Lenders of Acceptance or Rejection of Bids.  Carpenter shall promptly notify each Lender having submitted a Competitive Bid whether (with a copy to the Administrative Agent) or not its offer has been accepted and, if its offer has been accepted, of the amount of the Bid Loan or Bid Loans to be made by it on the date of the applicable Bid Borrowing.  Any Competitive Bid or portion thereof that is not accepted by Carpenter by the applicable time specified in Section
2.03(e) shall be deemed rejected.

 

    (h) Notice
of Eurocurrency Base Rate.  If any Bid Borrowing is to consist of Eurocurrency Margin Bid Loans, the Administrative Agent shall determine the Eurocurrency Base Rate for the relevant Interest Period, and promptly after making such determination, shall notify Carpenter and the Lenders that will be participating in such Bid Borrowing of such Eurocurrency Base Rate.

 

    (i) Funding
of Bid Loans.  Upon satisfaction of the applicable conditions set forth in Section 4.02, each Lender that has received notice pursuant to Section 2.03(g) that all or a portion of its Competitive Bid has been accepted by Carpenter shall (i) make the amount of its Bid Loan(s)
promptly available to Carpenter in immediately available funds and (ii) simultaneously deliver to the Administrative Agent (A) a summary of the terms of such Bid Loan and (B) a copy of all documentation delivered by such Lender to Carpenter in connection with such Bid Loan.

 

    (j) Notice
of Range of Bids.  After each Competitive Bid auction pursuant to this Section 2.03, the Borrower shall notify each Lender (with a copy to the Administrative Agent) that submitted a Competitive Bid in such auction of the ranges of bids submitted (without the bidder’s name) and accepted for each Bid Loan and the aggregate amount of each Bid Borrowing.

 

   2.04    Letters of Credit.

 

    (a) The Letter of Credit Commitment.

 

 

34

 

 

    (i) Subject to the terms
and conditions set forth herein, (A) the L/C Issuer agrees, in reliance upon the agreements of the Lenders set forth in this Section 2.04, (1) from time to time on any Business Day during the period from the Closing Date until the Letter of Credit Expiration Date, to issue Letters of Credit denominated in Dollars or in one or more Alternative Currencies for the account of Carpenter or its Subsidiaries,
and to amend or extend Letters of Credit previously issued by it, in accordance with subsection (b) below, and (2) to honor drawings under the Letters of Credit; and (B) the Lenders severally agree to participate in Letters of Credit issued for the account of Carpenter or its Subsidiaries and any drawings thereunder; provided that after giving effect to any L/C Credit Extension with respect to any Letter
of Credit, (x) the Total Outstandings shall not exceed the Aggregate Commitments, (y) the aggregate Outstanding Amount of the Committed Loans of any Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable
Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s Commitment, and (z) the Outstanding Amount of the L/C Obligations shall not exceed the Letter of Credit Sublimit.  Each request by Carpenter for the issuance or amendment of a Letter of Credit shall be deemed to be a representation by Carpenter that the L/C Credit Extension so requested complies with the conditions set forth in the proviso to the preceding sentence.  Within the foregoing limits,
and subject to the terms and conditions hereof, Carpenter’s ability to obtain Letters of Credit shall be fully revolving, and accordingly Carpenter may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed.

 

    (ii) The L/C Issuer shall not issue any
Letter of Credit, if:

 

    (A) subject to Section
2.04(b)(iii), the expiry date of such requested Letter of Credit would occur more than twelve months after the date of issuance or last extension, unless the Required Lenders have approved such expiry date; or

 

    (B) the expiry date of such requested Letter
of Credit would occur after the Letter of Credit Expiration Date, unless all the Lenders have approved such expiry date.

 

    (iii) The L/C Issuer shall not be under
any obligation to issue any Letter of Credit if:

 

    (A) any order, judgment or decree of any
Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the L/C Issuer from issuing such Letter of Credit, or any Law applicable to the L/C Issuer or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon the L/C Issuer with respect to such
Letter of Credit any restriction, reserve or capital requirement (for which the L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or expense which was not applicable on the Closing Date and which the L/C Issuer in good faith deems material to it;

 

 

35

 

 

    (B) the issuance of such Letter of Credit
would violate one or more policies of the L/C Issuer applicable to letters of credit generally;

 

    (C) except as otherwise agreed by the Administrative
Agent and the L/C Issuer, such Letter of Credit is in an initial stated amount less than $50,000, in the case of a commercial Letter of Credit, or $50,000, in the case of a standby Letter of Credit;

 

    (D) except as otherwise agreed by the Administrative
Agent and the L/C Issuer, such Letter of Credit is to be denominated in a currency other than Dollars or an Alternative Currency;

 

    (E) the L/C Issuer does not as of the issuance
date of such requested Letter of Credit issue Letters of Credit in the requested currency;

 

    (F) a default of any Lender’s obligations
to fund under Section 2.04(c) exists or any Lender is at such time a Defaulting Lender hereunder, unless the L/C Issuer has entered into satisfactory arrangements with Carpenter or such Lender to eliminate the L/C Issuer’s risk with respect to such Lender.

 

    (iv) The L/C Issuer shall not amend any
Letter of Credit if the L/C Issuer would not be permitted at such time to issue such Letter of Credit in its amended form under the terms hereof.

 

    (v) The L/C Issuer shall be under no obligation
to amend any Letter of Credit if (A) the L/C Issuer would have no obligation at such time to issue such Letter of Credit in its amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does not accept the proposed amendment to such Letter of Credit.

 

    (vi) The L/C Issuer shall act on behalf
of the Lenders with respect to any Letters of Credit issued by it and the documents associated therewith, and the L/C Issuer shall have all of the benefits and immunities (A) provided to the Administrative Agent in Article IX with respect to any acts taken or omissions suffered by the L/C Issuer in connection with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents pertaining
to such Letters of Credit as fully as if the term “Administrative Agent” as used in Article IX included the L/C Issuer with respect to such acts or omissions, and (B) as additionally provided herein with respect to the L/C Issuer.

 

 

36

 

 

    (b) Procedures
for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of Credit.

 

    (i) Each Letter of Credit shall be issued
or amended, as the case may be, upon the request of Carpenter delivered to the L/C Issuer (with a copy to the Administrative Agent) in the form of a Letter of Credit Application, appropriately completed and signed by a Responsible Officer of Carpenter.  Such Letter of Credit Application must be received by the L/C Issuer and the Administrative Agent not later than 11:00 a.m. at least two Business Days (or such later date and time as the Administrative Agent and the L/C Issuer may agree in a particular
instance in their sole discretion) prior to the proposed issuance date or date of amendment, as the case may be.  In the case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Application shall specify in form and detail satisfactory to the L/C Issuer: (A) the proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the amount and currency thereof; (C) the expiry date thereof; (D) the name and address of the beneficiary thereof; (E)
the documents to be presented by such beneficiary in case of any drawing thereunder; (F) the full text of any certificate to be presented by such beneficiary in case of any drawing thereunder; (G) the purpose and nature of the requested Letter of Credit; and (H) such other matters as the L/C Issuer may require.  In the case of a request for an amendment of any outstanding Letter of Credit, such Letter of Credit Application shall specify in form and detail satisfactory to the L/C Issuer (A) the Letter
of Credit to be amended; (B) the proposed date of amendment thereof (which shall be a Business Day); (C) the nature of the proposed amendment; and (D) such other matters as the L/C Issuer may require.  Additionally, Carpenter shall furnish to the L/C Issuer and the Administrative Agent such other documents and information pertaining to such requested Letter of Credit issuance or amendment, including any Issuer Documents, as the L/C Issuer or the Administrative Agent may require.

 

    (ii) Promptly after receipt of any Letter
of Credit Application, the L/C Issuer will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has received a copy of such Letter of Credit Application from Carpenter and, if not, the L/C Issuer will provide the Administrative Agent with a copy thereof.  Unless the L/C Issuer has received written notice from any Lender, the Administrative Agent or any Borrower, at least one Business Day prior to the requested date of issuance or amendment of the applicable
Letter of Credit, that one or more applicable conditions contained in Article IV shall not then be satisfied, then, subject to the terms and conditions hereof, the L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of Carpenter (or the applicable Subsidiary) or enter into the applicable amendment, as the case may be, in each case in accordance with the L/C Issuer’s
usual and customary business practices.  Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the L/C Issuer a risk participation in such Letter of Credit in an amount equal to the product of such Lender’s Applicable Percentage times the amount of such Letter of Credit.

 

 

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    (iii) If Carpenter so requests in any applicable Letter of Credit Application, the L/C Issuer may, in its sole and absolute discretion, agree to issue
a Letter of Credit that has automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided that any such Auto-Extension Letter of Credit must permit the L/C Issuer to prevent any such extension at least once in each twelve-month period (commencing with the
date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day (the “Non-Extension Notice Date”) in each such twelve-month period to be agreed upon at the time such Letter of Credit is issued.  Unless otherwise directed by the L/C Issuer, Carpenter shall not be required to make a specific request to the L/C Issuer for any such
extension.  Once an Auto-Extension Letter of Credit has been issued, the Lenders shall be deemed to have authorized (but may not require) the L/C Issuer to permit the extension of such Letter of Credit at any time to an expiry date not later than the Letter of Credit Expiration Date; provided, however,
that the L/C Issuer shall not permit any such extension if (A) the L/C Issuer has determined that it would not be permitted, or would have no obligation, at such time to issue such Letter of Credit in its revised form (as extended) under the terms hereof (by reason of the provisions of clause (ii) or (iii) of Section 2.04(a) or otherwise), or (B) it has received notice (which may be by telephone or
in writing) on or before the day that is seven Business Days before the Non-Extension Notice Date (1) from the Administrative Agent that the Required Lenders have elected not to permit such extension or (2) from the Administrative Agent, any Lender or Carpenter that one or more of the applicable conditions specified in Section 4.02 is not then satisfied, and in each such case directing the L/C Issuer
not to permit such extension.

 

    (iv) Promptly after its delivery of any Letter of Credit or any amendment to a Letter of Credit to an advising bank with respect thereto or to the beneficiary
thereof, the L/C Issuer will also deliver to Carpenter and the Administrative Agent a true and complete copy of such Letter of Credit or amendment.

 

    (c) Drawings
and Reimbursements; Funding of Participations.

 

    (i) Upon receipt from the beneficiary of
any Letter of Credit of any notice of a drawing under such Letter of Credit, the L/C Issuer shall notify Carpenter and the Administrative Agent thereof.  In the case of a Letter of Credit denominated in an Alternative Currency, Carpenter shall reimburse the L/C Issuer in such Alternative Currency, unless (A) the L/C Issuer (at its option) shall have specified in such notice that it will require reimbursement in Dollars, or (B) in the absence of any such requirement for reimbursement in Dollars, Carpenter
shall have notified the L/C Issuer promptly following receipt of the notice of drawing that Carpenter will reimburse the L/C Issuer in Dollars.  In the case of any such reimbursement in Dollars of a drawing under a Letter of Credit denominated in an Alternative Currency, the L/C Issuer shall notify Carpenter of the Dollar Equivalent of the amount of the drawing promptly following the determination thereof.  Not later than 11:00 a.m. on the date of any payment by the L/C Issuer under a Letter
of Credit to be reimbursed in Dollars, or the Applicable Time on the date of any payment by the L/C Issuer under a Letter of Credit to be reimbursed in an Alternative Currency (each such date, an “Honor Date”), Carpenter shall reimburse the L/C Issuer through the Administrative Agent in an amount equal to the amount of such drawing and in the applicable currency.  If Carpenter
fails to so reimburse the L/C Issuer by such time, the Administrative Agent shall promptly notify each Lender of the Honor Date, the amount of the unreimbursed drawing (expressed in Dollars in the amount of the Dollar Equivalent thereof in the case of a Letter of Credit denominated in an Alternative Currency) (the “Unreimbursed Amount”), and the amount of such Lender’s Applicable Percentage
thereof.  In such event, Carpenter shall be deemed to have requested a Committed Borrowing of Base Rate Loans to be disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without regard to the minimum and multiples specified in Section 2.02 for the principal amount of Base Rate Loans, but subject to the amount of the unutilized portion of the Aggregate Commitments and the
conditions set forth in Section 4.02 (other than the delivery of a Committed Loan Notice).  Any notice given by the L/C Issuer or the Administrative Agent pursuant to this Section 2.04(c)(i) may be given by telephone if immediately confirmed in writing; provided that
the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice.

 

 

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    (ii) Each Lender shall upon any notice
pursuant to Section 2.04(c)(i) make funds available to the Administrative Agent for the account of the L/C Issuer, in Dollars, at the Administrative Agent’s Office for Dollar-denominated payments in an amount equal to its Applicable Percentage of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day specified in such notice by the Administrative Agent, whereupon, subject to the
provisions of Section 2.04(c)(iii), each Lender that so makes funds available shall be deemed to have made a Base Rate Committed Loan to Carpenter in such amount.  The Administrative Agent shall remit the funds so received to the L/C Issuer in Dollars.

 

    (iii) With respect to any Unreimbursed
Amount that is not fully refinanced by a Committed Borrowing of Base Rate Loans because the conditions set forth in Section 4.02 cannot be satisfied or for any other reason, Carpenter shall be deemed to have incurred from the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due and payable on demand (together with interest)
and shall bear interest at the Default Rate.  In such event, each Lender’s payment to the Administrative Agent for the account of the L/C Issuer pursuant to Section 2.04(c)(ii) shall be deemed payment in respect of its participation in such L/C Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its participation obligation under this Section
2.04.

 

    (iv) Until each Lender funds its Committed
Loan or L/C Advance pursuant to this Section 2.04(c) to reimburse the L/C Issuer for any amount drawn under any Letter of Credit, interest in respect of such Lender’s Applicable Percentage of such amount shall be solely for the account of the L/C Issuer.

 

    (v) Each Lender’s obligation to make
Committed Loans or L/C Advances to reimburse the L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section 2.04(c), shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may have against the L/C Issuer, Carpenter, any Subsidiary or any other Person for
any reason whatsoever; (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Lender’s obligation to make Committed Loans pursuant to this Section
2.04(c) is subject to the conditions set forth in Section 4.02 (other than delivery by Carpenter of a Committed Loan Notice).  No such making of an L/C Advance shall relieve or otherwise impair the obligation of Carpenter to reimburse the L/C Issuer for the amount of any payment made by the L/C Issuer under any Letter of Credit, together with interest as provided herein.

 

 

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    (vi) If any Lender fails to make available
to the Administrative Agent for the account of the L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.04(c) by the time specified in Section 2.04(c)(ii), the L/C Issuer shall be entitled to recover from such Lender (acting through
the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the L/C Issuer at a rate per annum equal to the applicable Overnight Rate from time to time in effect, plus any administrative, processing or similar fees customarily charged by the L/C Issuer in connection with the foregoing.  If such Lender pays such amount (with interest and fees as aforesaid), the amount so paid
shall constitute such Lender’s Committed Loan included in the relevant Committed Borrowing or L/C Advance in respect of the relevant L/C Borrowing, as the case may be.  A certificate of the L/C Issuer submitted to any Lender (through the Administrative Agent) with respect to any amounts owing under this clause (vi) shall be conclusive absent manifest error.

 

    (d) Repayment
of Participations.

 

    (i) At any time after the L/C Issuer has
made a payment under any Letter of Credit and has received from any Lender such Lender’s L/C Advance in respect of such payment in accordance with Section 2.04(c), if the Administrative Agent receives for the account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or interest thereon (whether directly from Carpenter or otherwise, including proceeds of Cash Collateral
applied thereto by the Administrative Agent), the Administrative Agent will distribute to such Lender its Applicable Percentage thereof in Dollars and in the same funds as those received by the Administrative Agent.

 

    (ii) If any payment received by the Administrative
Agent for the account of the L/C Issuer pursuant to Section 2.04(c)(i) is required to be returned under any of the circumstances described in Section 11.05 (including pursuant to any settlement entered into by the L/C Issuer in its discretion), each Lender shall pay to the Administrative Agent
for the account of the L/C Issuer its Applicable Percentage thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned by such Lender, at a rate per annum equal to the applicable Overnight Rate from time to time in effect.  The obligations of the Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement.

 

    (e) Obligations
Absolute.  The obligation of Carpenter to reimburse the L/C Issuer for each drawing under each Letter of Credit and to repay each L/C Borrowing shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under all circumstances, including the following:

 

    (i) any lack of validity or enforceability
of such Letter of Credit, this Agreement, or any other Loan Document;

 

    (ii) the existence of any claim, counterclaim,
setoff, defense or other right that Carpenter or any Subsidiary may have at any time against any beneficiary or any transferee of such Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be acting), the L/C Issuer or any other Person, whether in connection with this Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction;

 

 

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    (iii) any draft, demand, certificate or
other document presented under such Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; or any loss or delay in the transmission or otherwise of any document required in order to make a drawing under such Letter of Credit;

 

    (iv) any payment by the L/C Issuer under
such Letter of Credit against presentation of a draft or certificate that does not strictly comply with the terms of such Letter of Credit; or any payment made by the L/C Issuer under such Letter of Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or other representative of or successor to any beneficiary or any transferee of such Letter of Credit, including any arising in connection with any proceeding under any Debtor
Relief Law;

 

    (v) any adverse change in the relevant
exchange rates or in the availability of the relevant Alternative Currency to Carpenter or any Subsidiary or in the relevant currency markets generally; or

 

    (vi) any other circumstance or happening
whatsoever, whether or not similar to any of the foregoing, including any other circumstance that might otherwise constitute a defense available to, or a discharge of, Carpenter or any Subsidiary.

 

Carpenter shall promptly examine a copy of each Letter of Credit and each amendment thereto that is delivered to it and, in the event of any claim of noncompliance with Carpenter’s instructions or other irregularity, Carpenter will immediately notify the L/C Issuer.  Carpenter shall be conclusively deemed to have waived
any such claim against the L/C Issuer and its correspondents unless such notice is given as aforesaid.

 

(f) Role of L/C Issuer.  Each Lender and
Carpenter agree that, in paying any drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by the Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person executing or delivering any such document.  None of the L/C Issuer, the Administrative Agent, any of their respective Related Parties nor any correspondent,
participant or assignee of the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the Lenders or the Required Lenders, as applicable; (ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or Issuer Document.  Carpenter hereby assumes all risks of
the acts or omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; provided, however, that this assumption is not intended to, and shall not, preclude Carpenter’s pursuing such rights and remedies as it may have against the beneficiary or transferee
at law or under any other agreement.  None of the L/C Issuer, the Administrative Agent, any of their respective Related Parties nor any correspondent, participant or assignee of the L/C Issuer shall be liable or responsible for any of the matters described in clauses (i) through (v) of Section 2.04(e); provided, however,
that anything in such clauses to the contrary notwithstanding, Carpenter may have a claim against the L/C Issuer, and the L/C Issuer may be liable to Carpenter, to the extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages suffered by Carpenter which Carpenter proves were caused by the L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful failure to pay under any Letter of Credit after the presentation to it by the beneficiary of
a sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of Credit.  In furtherance and not in limitation of the foregoing, the L/C Issuer may accept documents that appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary, and the L/C Issuer shall not be responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a
Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason.

 

 

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(g) Cash Collateral.  (i)  Upon
the request of the Administrative Agent, (A) if the L/C Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing has resulted in an L/C Borrowing, or (B) if, as of the Letter of Credit Expiration Date, any L/C Obligation for any reason remains outstanding, Carpenter shall, in each case, immediately Cash Collateralize the then Outstanding Amount of all L/C Obligations.

 

    (ii) In addition, if the Administrative
Agent notifies Carpenter at any time that the Outstanding Amount of all L/C Obligations at such time exceeds 105%  of the Letter of Credit Sublimit then in effect, then, within two Business Days after receipt of such notice, Carpenter shall Cash Collateralize the L/C Obligations in an amount equal to the amount by which the Outstanding Amount of all L/C Obligations exceeds the Letter of Credit Sublimit.

 

    (iii) The Administrative Agent may, at
any time and from time to time after the initial deposit of Cash Collateral, request that additional Cash Collateral be provided in order to protect against the results of exchange rate fluctuations.

 

    (iv) Sections
2.06 and 8.02(c) set forth certain additional requirements to deliver Cash Collateral hereunder.  For purposes of this Section 2.04, Section 2.06 and Section
8.02(c), “Cash Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for the benefit of the L/C Issuer and the Lenders, as collateral for the L/C Obligations, cash or deposit account balances pursuant to documentation in form and substance satisfactory to the Administrative Agent and the L/C Issuer (which documents are hereby consented to by the Lenders).  Derivatives
of such term have corresponding meanings.  Carpenter hereby grants to the Administrative Agent, for the benefit of the L/C Issuer and the Lenders, a security interest in all such cash, deposit accounts and all balances therein and all proceeds of the foregoing.  Cash Collateral shall be maintained in blocked, non-interest bearing deposit accounts at Bank of America.

 

 

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(h) Applicability of ISP and UCP.  Unless
otherwise expressly agreed by the L/C Issuer and Carpenter when a Letter of Credit is issued, (i) the rules of the ISP shall apply to each standby Letter of Credit, and (ii) the rules of the Uniform Customs and Practice for Documentary Credits, as most recently published by the International Chamber of Commerce at the time of issuance shall apply to each commercial Letter of Credit.

 

(i) Letter of Credit Fees.  Carpenter shall
pay to the Administrative Agent for the account of each Lender in accordance with its Applicable Percentage, in Dollars, a Letter of Credit fee (the “Letter of Credit Fee”) for each Letter of Credit equal to the Applicable Rate times the Dollar Equivalent of the daily amount available
to be drawn under such Letter of Credit; provided that, during such time that any Lender is a Defaulting Lender, then such Defaulting Lender shall not receive (and Carpenter shall not be obligated to pay) a Letter of Credit Fee.  For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance
with Section 1.09.  Letter of Credit Fees shall be (i) due and payable on the first Business Day after the end of each March, June, September and December, commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand and (ii) computed on a quarterly basis in arrears.  If there is any change
in the Applicable Rate during any quarter, the daily amount available to be drawn under each standby Letter of Credit shall be computed and multiplied by the Applicable Rate separately for each period during such quarter that such Applicable Rate was in effect.  Notwithstanding anything to the contrary contained herein, upon the request of the Required Lenders, while any Event of Default exists, all Letter of Credit Fees shall accrue at the Default Rate.

 

(j) Fronting Fee and Documentary and Processing Charges
Payable to L/C Issuer.  Carpenter shall pay directly to the L/C Issuer for its own account, in Dollars, a fronting fee (i) with respect to each commercial Letter of Credit, at the rate specified in the Administrative Agent’s Fee Letter, computed on the Dollar Equivalent of the amount of such Letter of Credit, and payable upon the issuance thereof, (ii) with respect to any amendment of a commercial Letter of Credit increasing the amount of such Letter of Credit, at a rate separately agreed
between Carpenter and the L/C Issuer, computed on the Dollar Equivalent of the amount of such increase, and payable upon the effectiveness of such amendment, and (iii) with respect to each standby Letter of Credit, at the rate per annum specified in the Administrative Agent’s Fee Letter, computed on the Dollar Equivalent of the daily amount available to be drawn under such Letter of Credit on a quarterly basis in arrears; provided that,
notwithstanding anything to the contrary in the Administrative Agent’s Fee Letter, all fronting fees on commercial Letters of Credit shall be paid as set forth above, by applying the rate specified in the Administrative Agent’s Fee Letter without any per annum adjustment and payable upon issuance or effectiveness, as applicable.  Such fronting fee shall be due and payable on the tenth Business Day after the end of each March, June, September and December in respect of the most recently-ended
quarterly period (or portion thereof, in the case of the first payment), commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand.  For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section
1.09.  In addition, Carpenter shall pay directly to the L/C Issuer for its own account, in Dollars, the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of the L/C Issuer relating to letters of credit as from time to time in effect.  Such customary fees and standard costs and charges are due and payable on demand and are nonrefundable.

 

 

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(k) Conflict with Issuer Documents.  In
the event of any conflict between the terms hereof and the terms of any Issuer Document, the terms hereof shall control.

 

(l) Letters of Credit Issued for Subsidiaries.  Notwithstanding
that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary, Carpenter shall be obligated to reimburse the L/C Issuer hereunder for any and all drawings under such Letter of Credit.  Carpenter hereby acknowledges that the issuance of Letters of Credit for the account of Subsidiaries inures to the benefit of Carpenter, and that Carpenter’s business derives substantial benefits from the businesses of such Subsidiaries.

 

2.05    Swing Line Loans.

 

(a) The Swing Line.  Subject to the terms
and conditions set forth herein, the Swing Line Lender agrees, in its sole discretion and in reliance upon the agreements of the other Lenders set forth in this Section 2.05, to make loans in Dollars (each such loan, a “Swing Line Loan”) to Carpenter from time to time on any Business
Day during the Availability Period in an aggregate amount not to exceed at any time outstanding the amount of the Swing Line Sublimit, notwithstanding the fact that such Swing Line Loans, when aggregated with the Applicable Percentage of the Outstanding Amount of Committed Loans and L/C Obligations of the Lender acting as Swing Line Lender, may exceed the amount of such Lender’s Commitment; provided, however,
that after giving effect to any Swing Line Loan, (i) the Total Outstandings shall not exceed the Aggregate Commitments, and (ii) the aggregate Outstanding Amount of the Committed Loans of any Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall not
exceed such Lender’s Commitment, and provided, further, that Carpenter shall not use the proceeds of any Swing Line Loan to refinance any outstanding Swing Line Loan.  Within the foregoing limits, and subject to the other terms and conditions hereof, Carpenter may borrow under
this Section 2.05, prepay under Section 2.06, and reborrow under this Section 2.05.  Each Swing Line Loan shall be a Base Rate Loan.  Immediately upon the making
of a Swing Line Loan, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Swing Line Lender a risk participation in such Swing Line Loan in an amount equal to the product of such Lender’s Applicable Percentage times the amount of such Swing Line Loan.

 

(b) Borrowing Procedures.  Each Swing Line
Borrowing shall be made upon Carpenter’s irrevocable notice to the Swing Line Lender and the Administrative Agent, which may be given by telephone. Each such notice must be received by the Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on the requested borrowing date, and shall specify (i) the amount to be borrowed, which shall be a minimum of $1,000,000 or a whole multiple of $100,000 in excess thereof, and (ii) the requested borrowing date, which shall be a Business Day.  Each
such telephonic notice must be confirmed promptly by delivery to the Swing Line Lender and the Administrative Agent of a written Swing Line Loan Notice, appropriately completed and signed by a Responsible Officer of Carpenter.  Promptly after receipt by the Swing Line Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has also received such Swing Line Loan Notice and, if not, the
Swing Line Lender will notify the Administrative Agent (by telephone or in writing) of the contents thereof.  Unless the Swing Line Lender has received notice (by telephone or in writing) from the Administrative Agent (including at the request of any Lender) prior to 2:00 p.m. on the date of the proposed Swing Line Borrowing (A) directing the Swing Line Lender not to make such Swing Line Loan as a result of the limitations set forth in the first proviso to the first sentence of Section
2.05(a), or (B) that one or more of the applicable conditions specified in Article IV is not then satisfied, then, subject to the terms and conditions hereof, the Swing Line Lender will, not later than 3:00 p.m. on the borrowing date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan available to Carpenter at its office by crediting the account of Carpenter on the
books of the Swing Line Lender in Same Day Funds.

 

 

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(c) Refinancing of Swing Line Loans.

 

    (i) The Swing Line Lender at any time in
its sole and absolute discretion may request, on behalf of Carpenter (which hereby irrevocably authorizes the Swing Line Lender to so request on its behalf), that each Lender make a Base Rate Committed Loan in an amount equal to such Lender’s Applicable Percentage of the amount of Swing Line Loans then outstanding.  Such request shall be made in writing (which written request shall be deemed to be a Committed Loan Notice for purposes hereof) and in accordance with the requirements of Section
2.02, without regard to the minimum and multiples specified therein for the principal amount of Base Rate Loans, but subject to the unutilized portion of the Aggregate Commitments and the conditions set forth in Section 4.02.  The Swing Line Lender shall furnish Carpenter with a copy of the applicable Committed Loan Notice promptly after delivering such notice to the Administrative
Agent.  Each Lender shall make an amount equal to its Applicable Percentage of the amount specified in such Committed Loan Notice available to the Administrative Agent in Same Day Funds for the account of the Swing Line Lender at the Administrative Agent’s Office for Dollar-denominated payments not later than 1:00 p.m. on the day specified in such Committed Loan Notice, whereupon, subject to Section
2.05(c)(ii), each Lender that so makes funds available shall be deemed to have made a Base Rate Committed Loan to Carpenter in such amount.  The Administrative Agent shall remit the funds so received to the Swing Line Lender.

 

    (ii) If for any reason any Swing Line Loan
cannot be refinanced by such a Committed Borrowing in accordance with Section 2.05(c)(i), the request for Base Rate Committed Loans submitted by the Swing Line Lender as set forth herein shall be deemed to be a request by the Swing Line Lender that each of the Lenders fund its risk participation in the relevant Swing Line Loan and each Lender’s payment to the Administrative Agent for the account
of the Swing Line Lender pursuant to Section 2.05(c)(i) shall be deemed payment in respect of such participation.

 

    (iii) If any Lender fails to make available
to the Administrative Agent for the account of the Swing Line Lender any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.05(c) by the time specified in Section 2.05(c)(i), the Swing Line Lender shall be entitled to recover from such Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the Swing Line Lender at a rate per annum equal to the applicable Overnight Rate from time to time in effect, plus any administrative, processing or similar fees customarily charged by the Swing Line Lender in connection with the foregoing.  If such Lender pays such amount (with interest and fees as aforesaid),
the amount so paid shall constitute such Lender’s Committed Loan included in the relevant Committed Borrowing or funded participation in the relevant Swing Line Loan, as the case may be.  A certificate of the Swing Line Lender submitted to any Lender (through the Administrative Agent) with respect to any amounts owing under this clause (iii) shall be conclusive absent manifest error.

 

 

45

 

 

    (iv) Each Lender’s obligation to
make Committed Loans or to purchase and fund risk participations in Swing Line Loans pursuant to this Section 2.05(c) shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may have against the Swing Line Lender, Carpenter or any other Person for any reason whatsoever, (B) the occurrence
or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Lender’s obligation to make Committed Loans pursuant to this Section
2.05(c) is subject to the conditions set forth in Section 4.02.  No such funding of risk participations shall relieve or otherwise impair the obligation of Carpenter to repay Swing Line Loans, together with interest as provided herein.

 

(d) Repayment of Participations.

 

    (i) At any time after any Lender has purchased
and funded a risk participation in a Swing Line Loan, if the Swing Line Lender receives any payment on account of such Swing Line Loan, the Swing Line Lender will distribute to such Lender its Applicable Percentage thereof in the same funds as those received by the Swing Line Lender.

 

    (ii) If any payment received by the Swing
Line Lender in respect of principal or interest on any Swing Line Loan is required to be returned by the Swing Line Lender under any of the circumstances described in Section 11.05 (including pursuant to any settlement entered into by the Swing Line Lender in its discretion), each Lender shall pay to the Swing Line Lender its Applicable Percentage thereof on demand of the Administrative Agent, plus
interest thereon from the date of such demand to the date such amount is returned, at a rate per annum equal to the applicable Overnight Rate.  The Administrative Agent will make such demand upon the request of the Swing Line Lender.  The obligations of the Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement.

 

    (e) Interest
for Account of Swing Line Lender.  The Swing Line Lender shall be responsible for invoicing Carpenter for interest on the Swing Line Loans.  Until each Lender funds its Base Rate Committed Loan or risk participation pursuant to this Section 2.05 to refinance such Lender’s Applicable Percentage of any Swing Line Loan, interest in respect of such Applicable Percentage
shall be solely for the account of the Swing Line Lender.

 

 

46

 

 

    (f) Payments
Directly to Swing Line Lender.  Carpenter shall make all payments of principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender.

 

   2.06    Prepayments.  (a)  Each
Borrower may, upon notice from Carpenter to the Administrative Agent, at any time or from time to time voluntarily prepay Committed Loans in whole or in part without premium or penalty; provided that (i) such notice must be received by the Administrative Agent not later than 11:00 a.m. (A) three Business Days prior to any date of prepayment of Eurocurrency Rate Loans denominated in Dollars, (B) four
Business Days (or five, in the case of prepayment of Loans denominated in Special Notice Currencies) prior to any date of prepayment of Eurocurrency Rate Loans denominated in Alternative Currencies, and (C) on the date of prepayment of Base Rate Committed Loans; (ii) any prepayment of Eurocurrency Rate Loans denominated in Dollars shall be in a principal amount of $1,000,000 or a whole multiple of $500,000 in excess thereof; (iii) any prepayment of Eurocurrency Rate Loans denominated in Alternative Currencies
shall be in a minimum principal amount of $1,000,000 or a whole multiple of $500,000 in excess thereof; and (iv) any prepayment of Base Rate Committed Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof or, in each case, if less, the entire principal amount thereof then outstanding.  Each such notice shall specify the date and amount of such prepayment and the Type(s) of Committed Loans to be prepaid and, if Eurocurrency Rate Loans are to be prepaid, the
Interest Period(s) of such Loans.  The Administrative Agent will promptly notify each Lender of its receipt of each such notice, and of the amount of such Lender’s Applicable Percentage of such prepayment.  If such notice is given by Carpenter, the applicable Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein.  Any prepayment of a Eurocurrency Rate Loan shall be accompanied by all accrued
interest on the amount prepaid, together with any additional amounts required pursuant to Section 3.05.  Each such prepayment shall be applied to the Committed Loans of the Lenders in accordance with their respective Applicable Percentages.

 

(b) No Bid Loan may be prepaid without the prior consent of the applicable Bid Loan Lender.

 

(c) Carpenter may, upon notice to the Swing Line Lender (with a copy to the Administrative Agent), at any time or from time to time, voluntarily prepay Swing Line
Loans in whole or in part without premium or penalty; provided that (i) such notice must be received by the Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on the date of the prepayment, and (ii) any such prepayment shall be in a minimum principal amount of $100,000.  Each such notice shall specify the date and amount of such prepayment.  If such notice is
given by Carpenter, Carpenter shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein.

 

(d) If the Administrative Agent notifies Carpenter at any time that the Total Outstandings at such time exceed an amount equal to 105%  of the Aggregate
Commitments then in effect, then, within two Business Days after receipt of such notice, the Borrowers shall prepay Loans and/or Carpenter shall Cash Collateralize the L/C Obligations in an aggregate amount sufficient to reduce such Outstanding Amount as of such date of payment to an amount not to exceed 100% of the Aggregate Commitments then in effect; provided, however,
that, subject to the provisions of Section 2.04(g)(ii), Carpenter shall not be required to Cash Collateralize the L/C Obligations pursuant to this Section 2.06(c) unless after the prepayment in full of the Loans the Total Outstandings exceed the Aggregate Commitments then in effect.  The
Administrative Agent may, at any time and from time to time after the initial deposit of such Cash Collateral, request that additional Cash Collateral be provided in order to protect against the results of further exchange rate fluctuations.

 

 

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2.07    Termination or Reduction of Commitments.  Carpenter may, upon notice to the Administrative
Agent, terminate the Aggregate Commitments, or from time to time permanently reduce the Aggregate Commitments; provided that (i) any such notice shall be received by the Administrative Agent not later than 11:00 a.m. five Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of $10,000,000 or any whole multiple of $1,000,000 in excess
thereof, (iii) Carpenter shall not terminate or reduce the Aggregate Commitments if, after giving effect thereto and to any concurrent prepayments hereunder, the Total Outstandings would exceed the Aggregate Commitments, and (iv) if, after giving effect to any reduction of the Aggregate Commitments, the Letter of Credit Sublimit or the Swing Line Sublimit exceeds the amount of the Aggregate Commitments, such sublimit shall be automatically reduced by the amount of such excess.  The Administrative Agent
will promptly notify the Lenders of any such notice of termination or reduction of the Aggregate Commitments.  The amount of any such Aggregate Commitment reduction shall not be applied to the Alternative Currency Sublimit or the Letter of Credit Sublimit unless otherwise specified by Carpenter.  Any reduction of the Aggregate Commitments shall be applied to the Commitment of each Lender according to its Applicable Percentage.  All fees accrued until the effective date of any termination
of the Aggregate Commitments shall be paid on the effective date of such termination.

 

2.08    Repayment of Loans.  (a) Each Borrower shall repay to the Lenders on the Maturity Date
the aggregate principal amount of Committed Loans made to such Borrower outstanding on such date.

 

(b) The Borrower shall repay each Bid Loan on the last day of the Interest Period in respect thereof.

 

(c) Carpenter shall repay each Swing Line Loan on the earlier to occur of (i) the date ten Business Days after such Loan is made and (ii) the Maturity Date.

 

2.09    Interest.  (a)  Subject to the provisions of subsection (b) below, (i) each
Eurocurrency Rate Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the Eurocurrency Rate for such Interest Period plus the Applicable Rate plus (in the case of a Eurocurrency Rate Loan of any Lender which is lent from
a Lending Office in the United Kingdom or a Participating Member State) the Mandatory Cost, (ii) each Base Rate Committed Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate, (iii) each Bid Loan shall bear interest on the outstanding principal amount thereof for the Interest Period
therefor at a rate per annum equal to the Eurocurrency Base Rate for such Interest Period plus (or minus) the Eurodollar Bid Margin, or at the Absolute Rate for such Interest Period, as the case may be and (iv) each Swing Line Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate.

 

 

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(b)  (i) If any amount of principal of any Loan is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration
or otherwise, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.

 

(ii) If any amount (other than principal of any Loan) payable by any Borrower under any Loan Document is not paid when due (without regard to any applicable grace
periods), whether at stated maturity, by acceleration or otherwise, then upon the request of the Required Lenders, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.

 

(iii) Upon the request of the Required Lenders, while any Event of Default exists, the Borrowers shall pay interest on the principal amount of all outstanding Obligations
hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.

 

(iv) Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.

 

(c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as may be specified herein.  Interest
hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law.

 

(d) For the purposes of the Interest Act (Canada), (i) whenever a rate of interest or fee rate hereunder is calculated on the basis of a year (the “deemed
year”) that contains fewer days than the actual number of days in the calendar year of calculation, such rate of interest or fee rate shall be expressed as a yearly rate by multiplying such rate of interest or fee rate by the actual number of days in the calendar year of calculation and dividing it by the number of days in the deemed year, (ii) the principle of deemed reinvestment of interest shall not apply to any interest calculation hereunder and (iii) the rates of interest stipulated herein are intended
to be nominal rates and not effective rates or yields.

 

2.10    Fees.  In addition to certain fees described in subsections (i) and (j) of Section 2.04:

 

(a) Facility Fee.  Carpenter shall pay
to the Administrative Agent for the account of each Lender in accordance with its Applicable Percentage, a facility fee in Dollars equal to the Applicable Rate times the actual daily amount of the Aggregate Commitments (or, if the Aggregate Commitments have terminated, on the Outstanding Amount of all Committed Loans, Swing Line Loans and L/C Obligations), regardless of usage; provided that,
during such time that any Lender is a Defaulting Lender, then such Defaulting Lender shall only be entitled to receive (and Carpenter shall only be obligated to pay to or for the benefit of such Defaulting Lender) a facility fee with respect to the actual daily amount on the Outstanding Amount of all Committed Loans, Swing Line Loans and drawn Letters of Credit of such Defaulting Lender.  The facility fee shall accrue at all times during the Availability Period (and thereafter so long as any Committed
Loans, Swing Line Loans or L/C Obligations remain outstanding), including at any time during which one or more of the conditions in Article IV is not met, and shall be due and payable quarterly in arrears on the last Business Day of each March, June, September and December, commencing with the first such date to occur after the Closing Date, and on the last day of the Availability Period (and, if applicable,
thereafter on demand).  The facility fee shall be calculated quarterly in arrears, and if there is any change in the Applicable Rate during any quarter, the actual daily amount shall be computed and multiplied by the Applicable Rate separately for each period during such quarter that such Applicable Rate was in effect.

 

 

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(b) Other Fees.  (i)  Carpenter
shall pay to the Arrangers and the Administrative Agent for their own respective accounts, in Dollars, fees in the amounts, at the times and to the parties specified in each Fee Letter.  Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

 

    (ii) Carpenter shall pay to the Lenders,
in Dollars, such fees as shall have been separately agreed upon in writing in the amounts and at the times so specified.  Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

 

2.11 Computation of Interest
and Fees.  All computations of interest for Base Rate Loans shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed.  All other computations of fees and interest shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year), or, in the case of interest in respect of Committed Loans denominated in Alternative Currencies
as to which market practice differs from the foregoing, in accordance with such market practice.  Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid, provided that any Loan that is repaid on the same day on which it is made shall, subject to Section
2.13(a), bear interest for one day.  Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error.

 

2.12 Evidence of Debt.  (a)
The Credit Extensions made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the Administrative Agent in the ordinary course of business.  The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Credit Extensions made by the Lenders to the Borrowers and the interest and payments thereon.  Any failure to so record or any error in doing so shall not, however,
limit or otherwise affect the obligation of the Borrowers hereunder to pay any amount owing with respect to the Obligations.  In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.  Upon the request of any Lender to a Borrower made through the Administrative Agent, such Borrower
shall execute and deliver to such Lender (through the Administrative Agent) a Note, which shall evidence such Lender’s Loans to such Borrower in addition to such accounts or records.  Each Lender may attach schedules to a Note and endorse thereon the date, Type (if applicable), amount, currency and maturity of its Loans and payments with respect thereto.

 

 

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(b) In addition to the accounts and records referred to in subsection (a), each Lender and the Administrative Agent shall maintain in accordance with its usual practice
accounts or records evidencing the purchases and sales by such Lender of participations in Letters of Credit and Swing Line Loans.  In the event of any conflict between the accounts and records maintained by the Administrative Agent and the accounts and records of any Lender in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.

 

2.13    Payments
Generally; Administrative Agent’s Clawback.  (a) General.  All payments to be made by the Borrowers shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff.  Except as otherwise expressly provided herein and except with respect to principal of and interest on Loans denominated in an Alternative Currency, all payments
by the Borrowers hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the applicable Administrative Agent’s Office in Dollars and in Same Day Funds not later than 2:00 p.m. on the date specified herein.  Except as otherwise expressly provided herein, all payments by the Borrowers hereunder with respect to principal and interest on Loans denominated in an Alternative Currency shall be made to the Administrative Agent, for
the account of the respective Lenders to which such payment is owed, at the applicable Administrative Agent’s Office in such Alternative Currency and in Same Day Funds not later than the Applicable Time specified by the Administrative Agent on the dates specified herein. Without limiting the generality of the foregoing, the Administrative Agent may require that any payments due under this Agreement be made in the United States.  If, for any reason, any Borrower is prohibited by any Law from making
any required payment hereunder in an Alternative Currency, such Borrower shall make such payment in Dollars in the Dollar Equivalent of the Alternative Currency payment amount.  The Administrative Agent will promptly distribute to each Lender its Applicable Percentage (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative Agent (i) after 2:00 p.m., in the case
of payments in Dollars, or (ii) after the Applicable Time specified by the Administrative Agent in the case of payments in an Alternative Currency, shall in each case be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue.  If any payment to be made by any Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or
fees, as the case may be.

 

 

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(b)  (i) Funding by Lenders; Presumption by Administrative
Agent.  Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Committed Borrowing of Eurocurrency Rate Loans (or, in the case of any Committed Borrowing of Base Rate Loans, prior to 12:00 noon on the date of such Committed Borrowing) that such Lender will not make available to the Administrative Agent such Lender’s share of such Committed Borrowing, the Administrative Agent may assume that such Lender has made such share available on
such date in accordance with Section 2.02 (or, in the case of a Committed Borrowing of Base Rate Loans, that such Lender has made such share available in accordance with and at the time required by Section 2.02) and may, in reliance upon such assumption, make available to the applicable Borrower
a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Committed Borrowing available to the Administrative Agent, then the applicable Lender and the applicable Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount in Same Day Funds with interest thereon, for each day from and including the date such amount is made available to such Borrower to but excluding the date of payment to the Administrative Agent,
at (A) in the case of a payment to be made by such Lender, the Overnight Rate, plus any administrative, processing or similar fees customarily charged by the Administrative Agent in connection with the foregoing, and (B) in the case of a payment to be made by such Borrower, the interest rate applicable to Base Rate Loans.  If such Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to such Borrower
the amount of such interest paid by such Borrower for such period.  If such Lender pays its share of the applicable Committed Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender’s Committed Loan included in such Committed Borrowing.  Any payment by such Borrower shall be without prejudice to any claim such Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

 

    (ii) Payments by Borrowers; Presumptions
by Administrative Agent.  Unless the Administrative Agent shall have received notice from a Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the L/C Issuer hereunder that such Borrower will not make such payment, the Administrative Agent may assume that such Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the L/C Issuer, as the case may
be, the amount due.  In such event, if such Borrower has not in fact made such payment, then each of the Lenders or the L/C Issuer, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or the L/C Issuer, in Same Day Funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the Overnight Rate.

 

A notice of the Administrative Agent to any Lender or Borrower with respect to any amount owing under this subsection (b) shall be conclusive, absent manifest error.

 

(c) Failure to Satisfy Conditions Precedent.  If
any Lender makes available to the Administrative Agent funds for any Loan to be made by such Lender to any Borrower as provided in the foregoing provisions of this Article II, and such funds are not made available to such Borrower by the Administrative Agent because the conditions to the applicable Credit Extension set forth in Article
IV are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall return such funds (in like funds as received from such Lender) to such Lender, without interest.

 

 

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(d) Obligations of Lenders Several.  The
obligations of the Lenders hereunder to make Committed Loans, to fund participations in Letters of Credit and Swing Line Loans and to make payments pursuant to Section 11.04(c) are several and not joint.  The failure of any Lender to make any Committed Loan, to fund any such participation or to make any payment under Section
11.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Committed Loan, to purchase its participation or to make its payment under Section 11.04(c).

 

(e) Funding Source.  Nothing herein shall
be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner.

 

2.14    Sharing
of Payments by Lenders.  If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of the Committed Loans made by it, or the participations in L/C Obligations or in Swing Line Loans held by it resulting in such Lender’s receiving payment of a proportion of the aggregate amount of such Committed Loans or participations and accrued interest thereon greater than its pro rata share
thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Committed Loans and subparticipations in L/C Obligations and Swing Line Loans of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their
respective Committed Loans and other amounts owing them, provided that:

 

(i) if any such participations or subparticipations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

 

(ii) the provisions of this Section shall not be construed to apply to (x) any payment made by a Borrower pursuant to and in accordance with the express terms of
this Agreement or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Committed Loans or subparticipations in L/C Obligations or Swing Line Loans to any assignee or participant, other than to Carpenter or any Subsidiary thereof (as to which the provisions of this Section shall apply).

 

Each Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against such Borrower
rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Borrower in the amount of such participation.

 

 

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2.15    Subsidiary
Borrowers.

 

    (a) Carpenter may at any time, upon not
less than 15 Business Days’ notice from Carpenter to the Administrative Agent (or such shorter period as may be agreed by the Administrative Agent in its reasonable discretion), designate any Subsidiary of Carpenter (an “Applicant Borrower”) as a Subsidiary Borrower to receive Loans hereunder by delivering to the Administrative Agent (which shall promptly deliver counterparts thereof
to each Lender) a duly executed notice and agreement in substantially the form of Exhibit G (a “Subsidiary Borrower Request and Assumption Agreement”).  The parties hereto acknowledge and agree that prior to any Applicant Borrower becoming entitled to utilize the credit
facilities provided for herein the Administrative Agent and the Lenders shall have received such supporting resolutions, incumbency certificates, opinions of counsel and other documents or information, in form, content and scope reasonably satisfactory to the Administrative Agent, as may be required by the Administrative Agent or the Required Lenders in their sole discretion, and Notes signed by such new Borrowers to the extent any Lenders so require.  If the Administrative Agent and the Required Lenders
agree that an Applicant Borrower shall be entitled to receive Loans hereunder, then promptly following receipt of all such requested resolutions, incumbency certificates, opinions of counsel and other documents or information, the Administrative Agent shall send a notice in substantially the form of Exhibit H (a “Subsidiary
Borrower Notice”) to Carpenter and the Lenders specifying the effective date upon which the Applicant Borrower shall constitute a Subsidiary Borrower for purposes hereof, whereupon each of the Lenders agrees to permit such Subsidiary Borrower to receive Loans hereunder, on the terms and conditions set forth herein, and each of the parties agrees that such Subsidiary Borrower otherwise shall be a Borrower for all purposes of this Agreement; provided that
no Committed Loan Notice or Letter of Credit Application may be submitted by or on behalf of such Subsidiary Borrower until the date five Business Days after such effective date; provided further, that effective as of the Closing Date, the Required Lenders agree that each of the following
Subsidiaries may become a “Subsidiary Borrower” pursuant hereto (subject to satisfaction of the other conditions set forth in this Section 2.15) without any requirement of further written consent from the Required Lenders:  (i) Carpenter Technology (Europe) S.A., a company organized and existing under the laws of Belgium, (ii) Carpenter Technology (UK) Limited, a company organized
and existing under the laws of England and Wales, (iii) Carpenter Powder Products AB, a company organized and existing under the laws of Sweden and (iv) Carpenter Technology (Canada) Ltd.

 

    (b) The Obligations of Carpenter and each
Subsidiary Borrower that is a Domestic Subsidiary shall be joint and several in nature.  The Obligations of all Subsidiary Borrowers that are Foreign Subsidiaries shall be joint and several in nature, unless joint liability will result in a material adverse tax consequence to any Borrower or Subsidiary, in which case, the Obligations of the Borrower that would otherwise result in such material adverse tax consequence will be several in nature.

 

    (c) Each Subsidiary of Carpenter that is
or becomes a “Subsidiary Borrower” pursuant to this Section 2.15 hereby irrevocably appoints Carpenter as its agent for all purposes relevant to this Agreement and each of the other Loan Documents, including (i) the giving and receipt of notices, (ii) the execution and delivery of all documents, instruments and certificates contemplated herein and all modifications hereto, and (iii) the
receipt of the proceeds of any Loans made by the Lenders to any such Subsidiary Borrower hereunder.  Any acknowledgment, consent, direction, certification or other action which might otherwise be valid or effective only if given or taken by all Borrowers, or by each Borrower acting singly, shall be valid and effective if given or taken only by Carpenter, whether or not any such other Borrower joins therein.  Any notice, demand, consent, acknowledgement, direction, certification or other communication
delivered to Carpenter in accordance with the terms of this Agreement shall be deemed to have been delivered to each Subsidiary Borrower.

 

 

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    (d) Carpenter may from time to time, upon not less
than 15 Business Days’ notice from Carpenter to the Administrative Agent (or such shorter period as may be agreed by the Administrative Agent in its sole discretion), terminate a Subsidiary Borrower’s status as such, provided that there are no outstanding Loans payable by such Subsidiary Borrower, or other amounts payable by such Subsidiary Borrower on account of any Loans made to it, as of the effective date of such termination. The Administrative Agent will promptly notify the Lenders of any such
termination of a Subsidiary Borrower’s status.

 

   2.16    Increase
in Commitments.

 

    (a) Request
for Increase.  Provided there exists no Default, upon notice to the Administrative Agent (which shall promptly notify the Lenders), Carpenter may from time to time request an increase in the Aggregate Commitments by an amount (for all such requests) not exceeding $100,000,000; provided that any such request for an increase shall be in a minimum amount of $5,000,000.  At the
time of sending such notice, Carpenter (in consultation with the Administrative Agent) shall specify the time period within which each Lender is requested to respond (which shall in no event be less than ten Business Days from the date of delivery of such notice to the Lenders).

 

    (b) Lender
Elections to Increase.  Each Lender shall notify the Administrative Agent within such time period whether or not it agrees to increase its Commitment and, if so, whether by an amount equal to, greater than, or less than its Applicable Percentage of such requested increase.  Any Lender not responding within such time period shall be deemed to have declined to increase its Commitment.

 

    (c) Notification
by Administrative Agent; Additional Lenders.  The Administrative Agent shall notify Carpenter and each Lender of the Lenders’ responses to each request made hereunder.  To achieve the full amount of a requested increase and subject to the approval of the Administrative Agent, the L/C Issuer and the Swing Line Lender (which approvals shall not be unreasonably withheld), Carpenter may also invite additional Eligible Assignees to become Lenders pursuant to a joinder agreement in
form and substance satisfactory to the Administrative Agent and its counsel.

 

    (d) Effective
Date and Allocations.  If the Aggregate Commitments are increased in accordance with this Section, the Administrative Agent and Carpenter shall determine the effective date (the “Increase Effective Date”) and the final allocation of such increase.  The Administrative Agent shall promptly notify Carpenter and the Lenders of the final allocation of such increase
and the Increase Effective Date.

 

 

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    (e) Conditions
to Effectiveness of Increase.  As a condition precedent to such increase, Carpenter shall deliver to the Administrative Agent a certificate of each Borrower dated as of the Increase Effective Date (in sufficient copies for each Lender) signed by a Responsible Officer of such Borrower (i) certifying and attaching the resolutions adopted by such Borrower approving or consenting to such increase, and (ii) in the case of Carpenter, certifying that, before and after giving effect to such increase,
(A) the representations and warranties contained in Article V and the other Loan Documents are true and correct on and as of the Increase Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this Section
2.16, the representations and warranties contained in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01, and (B) no Default exists.  The Borrowers shall prepay
any Committed Loans outstanding on the Increase Effective Date (and pay any additional amounts required pursuant to Section 3.05) to the extent necessary to keep the outstanding Committed Loans ratable with any revised Applicable Percentages arising from any nonratable increase in the Commitments under this Section.

 

    (f) Conflicting
Provisions.  This Section shall supersede any provisions in Section 2.14 or 11.01 to the contrary.

 

ARTICLE III
TAXES, YIELD PROTECTION AND ILLEGALITY

 

   3.01    Taxes.

 

    (a) Payments
Free of Taxes; Obligation to Withhold; Payments on Account of Taxes.  (i) Any and all payments by or on account of any obligation of the respective Borrowers hereunder or under any other Loan Document shall to the extent permitted by applicable Laws be made free and clear of and without reduction or withholding for any Taxes.  If, however, applicable Laws require any Borrower or the Administrative Agent to withhold or deduct any Tax, such Tax shall be withheld or deducted in accordance
with such Laws as determined by such Borrower or the Administrative Agent, as the case may be, upon the basis of the information and documentation to be delivered pursuant to subsection (e) below.

 

    (ii) If any Borrower or the Administrative
Agent shall be required by the Code to withhold or deduct any Taxes, including both United States Federal backup withholding and withholding taxes, from any payment, then (A) the Administrative Agent shall withhold or make such deductions as are determined by the Administrative Agent to be required based upon the information and documentation it has received pursuant to subsection (e) below, (B) the Administrative Agent shall timely pay the full amount withheld or deducted to the relevant Governmental Authority
in accordance with the Code, and (C) to the extent that the withholding or deduction is made on account of Indemnified Taxes or Other Taxes, the sum payable by such Borrower shall be increased as necessary so that after any required withholding or the making of all required deductions (including deductions applicable to additional sums payable under this Section) the Administrative Agent, Lender or L/C Issuer, as the case may be, receives an amount equal to the sum it would have received had no such withholding
or deduction been made.

 

 

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    (iii) If any Borrower or the Administrative Agent
shall be required by any applicable Laws other than the Code to withhold or deduct any Taxes from any payment, then (A) such Borrower or the Administrative Agent, as required by such Laws, shall withhold or make such deductions as are determined by it to be required based upon the information and documentation it has received pursuant to subsection (e) below, (B) such Borrower or the Administrative Agent, to the extent required by such Laws, shall timely pay the full amount so withheld or deducted by it to the
relevant Governmental Authority in accordance with such Laws, and (C) to the extent that the withholding or deduction is made on account of Indemnified Taxes or Other Taxes, the sum payable by such Borrower shall be increased as necessary so that after any required withholding or the making of all required deductions (including deductions applicable to additional sums payable under this Section) the Administrative Agent, Lender or L/C Issuer, as the case may be, receives an amount equal to the sum it would have
received had no such withholding or deduction been made.

 

    (b) Payment
of Other Taxes by the Borrowers.  Without limiting the provisions of subsection (a) above, each Borrower shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable Laws.

 

    (c) Tax
Indemnifications.  (i) Without limiting the provisions of subsection (a) or (b) above, each Borrower shall, and does hereby, indemnify the Administrative Agent, each Lender and the L/C Issuer, and shall make payment in respect thereof within 10 days after demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) withheld or deducted by such Borrower or the
Administrative Agent or paid by the Administrative Agent, such Lender or the L/C Issuer, as the case may be, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  Each Borrower shall also, and does hereby, indemnify the Administrative Agent, and shall make payment in respect thereof within 10 days after demand therefor, for
any amount which a Lender or the L/C Issuer for any reason fails to pay indefeasibly to the Administrative Agent as required by clause (ii) of this subsection.  A certificate as to the amount of any such payment or liability delivered to a Borrower by a Lender or the L/C Issuer (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender or the L/C Issuer, shall be conclusive absent manifest error.

 

    (ii) Without limiting the provisions of
subsection (a) or (b) above, each Lender and the L/C Issuer shall, and does hereby, indemnify each Borrower and the Administrative Agent, and shall make payment in respect thereof within 10 days after demand therefor, against any and all Taxes and any and all related losses, claims, liabilities, penalties, interest and expenses (including the fees, charges and disbursements of any counsel for such Borrower or the Administrative Agent) incurred by or asserted against such Borrower or the Administrative Agent by
any Governmental Authority as a result of the failure by such Lender or the L/C Issuer, as the case may be, to deliver, or as a result of the inaccuracy, inadequacy or deficiency of, any documentation required to be delivered by such Lender or the L/C Issuer, as the case may be, to such Borrower or the Administrative Agent pursuant to subsection (e).  Each Lender and the L/C Issuer hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender or
the L/C Issuer, as the case may be, under this Agreement or any other Loan Document against any amount due to the Administrative Agent under this clause (ii).  The agreements in this clause (ii) shall survive the resignation and/or replacement of the Administrative Agent, any assignment of rights by, or the replacement of, a Lender or the L/C Issuer, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all other Obligations.

 

 

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    (d) Evidence
of Payments.  Upon request by a Borrower or the Administrative Agent, as the case may be, after any payment of Taxes by such Borrower or by the Administrative Agent to a Governmental Authority as provided in this Section 3.01, such Borrower shall deliver to the Administrative Agent or the Administrative Agent shall deliver to such Borrower, as the case may be, the original or a certified
copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of any return required by Laws to report such payment or other evidence of such payment reasonably satisfactory to such Borrower or the Administrative Agent, as the case may be.

 

    (e) Status
of Lenders; Tax Documentation.  (i)  Each Lender shall deliver to Carpenter and to the Administrative Agent, at the time or times prescribed by applicable Laws or when reasonably requested by Carpenter or the Administrative Agent, such properly completed and executed documentation prescribed by applicable Laws or by the taxing authorities of any jurisdiction and such other reasonably requested information as will permit Carpenter or the Administrative Agent, as the case may be, to determine
(A) whether or not payments made by the respective Borrowers hereunder or under any other Loan Document are subject to Taxes, (B) if applicable, the required rate of withholding or deduction, and (C) such Lender’s entitlement to any available exemption from, or reduction of, applicable Taxes in respect of all payments to be made to such Lender by the respective Borrowers pursuant to this Agreement or otherwise to establish such Lender’s status for withholding tax purposes in the applicable jurisdictions.

 

    (ii) Without limiting the generality of
the foregoing, if a Borrower is resident for tax purposes in the United States,

 

    (A) any Lender that is a “United
States person” within the meaning of Section 7701(a)(30) of the Code shall deliver to Carpenter and the Administrative Agent executed originals of Internal Revenue Service Form W-9 or such other documentation or information prescribed by applicable Laws or reasonably requested by Carpenter on behalf of such Borrower or the Administrative Agent as will enable such Borrower or the Administrative Agent, as the case may be, to determine whether or not such Lender is subject to backup withholding or information
reporting requirements; and

 

    (B) each Foreign Lender that is entitled
under the Code or any applicable treaty to an exemption from or reduction of withholding tax with respect to payments hereunder or under any other Loan Document shall deliver to Carpenter and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the request of Carpenter on behalf of such Borrower or the Administrative Agent, but only if such Foreign
Lender is legally entitled to do so), whichever of the following is applicable:

 

             (I) executed originals of Internal Revenue Service Form W-8BEN claiming eligibility for
benefits of an income tax treaty to which the United States is a party,

 

 

58

 

 

    (II) executed originals of Internal Revenue Service
Form W-8ECI,

 

    (III) executed originals of Internal Revenue
Service Form W-8IMY and all required supporting documentation,

 

    (IV) in the case of a Foreign Lender claiming
the benefits of the exemption for portfolio interest under section 881(c) of the Code, (x) a certificate to the effect that such Foreign Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of such Borrower within the meaning of section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in section 881(c)(3)(C) of the Code and (y) executed originals of  Internal Revenue Service
Form W-8BEN, or

 

    (V) executed originals of any other form
prescribed by applicable Laws as a basis for claiming exemption from or a reduction in United States Federal withholding tax together with such supplementary documentation as may be prescribed by applicable Laws to permit such Borrower or the Administrative Agent to determine the withholding or deduction required to be made.

 

    (iii) Each Lender shall promptly (A) notify
Carpenter and the Administrative Agent of any change in circumstances which would modify or render invalid any claimed exemption or reduction, and (B) take such steps as shall not be materially disadvantageous to it, in the reasonable judgment of such Lender, and as may be reasonably necessary (including the re-designation of its Lending Office) to avoid any requirement of applicable Laws of any jurisdiction that any Borrower or the Administrative Agent make any withholding or deduction for taxes from amounts
payable to such Lender.

 

    (iv) Each of the Borrowers shall promptly
deliver to the Administrative Agent or any Lender, as the Administrative Agent or such Lender shall reasonably request, on or prior to the Closing Date (or such later date on which it first becomes a Borrower), and in a timely fashion thereafter, such documents and forms required by any relevant taxing authorities under the Laws of any jurisdiction, duly executed and completed by such Borrower, as are required to be furnished by such Lender or the Administrative Agent under such Laws in connection with any payment
by the Administrative Agent or any Lender of Taxes or Other Taxes, or otherwise in connection with the Loan Documents, with respect to such jurisdiction.

 

 

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    (f) Treatment
of Certain Refunds.  Unless required by applicable Laws, at no time shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a Lender or the L/C Issuer, or have any obligation to pay to any Lender or the L/C Issuer, any refund of Taxes withheld or deducted from funds paid for the account of such Lender or the L/C Issuer, as the case may be.  If the Administrative Agent, any Lender or the L/C Issuer determines, in its sole discretion, that it has
received a refund of any Taxes or Other Taxes as to which it has been indemnified by any Borrower or with respect to which any Borrower has paid additional amounts pursuant to this Section, it shall pay to such Borrower an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by such Borrower under this Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses and net of any loss or gain realized in the
conversion of such funds from or to another currency incurred by the Administrative Agent, such Lender or the L/C Issuer, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund), provided that each Borrower, upon the request of the Administrative Agent, such Lender or the L/C Issuer, agrees to repay the amount paid over
to such Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent, such Lender or the L/C Issuer in the event the Administrative Agent, such Lender or the L/C Issuer is required to repay such refund to such Governmental Authority.  This subsection shall not be construed to require the Administrative Agent, any Lender or the L/C Issuer to make available its tax returns (or any other information relating to its taxes that it deems
confidential) to any Borrower or any other Person.

 

   3.02    Illegality.  If
any Lender determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending Office to make, maintain or fund Eurocurrency Rate Loans (whether denominated in Dollars or an Alternative Currency), or to determine or charge interest rates based upon the Eurocurrency Rate, or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars or any
Alternative Currency in the applicable interbank market, then, on notice thereof by such Lender to Carpenter through the Administrative Agent, any obligation of such Lender to make or continue Eurocurrency Rate Loans in the affected currency or currencies or, in the case of Eurocurrency Rate Loans in Dollars, to convert Base Rate Committed Loans to Eurocurrency Rate Loans or, if such notice relates to the unlawfulness or asserted unlawfulness of charging interest based on the Eurocurrency Base Rate, to make Base
Rate Loans as to which the interest rate is determined with reference to the Eurocurrency Base Rate, shall be suspended until such Lender notifies the Administrative Agent and Carpenter that the circumstances giving rise to such determination no longer exist.  Upon receipt of such notice, the Borrowers shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable and such Loans are denominated in Dollars, convert all such Eurocurrency Rate Loans of such Lender
and Base Rate Loans as to which the interest rate is determined with reference to the Eurocurrency Base Rate to Base Rate Loans as to which the rate of interest is not determined with reference to the Eurocurrency Base Rate, to Base Rate Loans, either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurocurrency Rate Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such Eurocurrency Rate Loans or a Base Rate Loan as to
which the interest rate is determined with reference to the Eurocurrency Base Rate.  Upon any such prepayment or conversion, the Borrowers shall also pay accrued interest on the amount so prepaid or converted.

 

 

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   3.03    Inability
to Determine Rates.  If the Required Lenders determine that for any reason in connection with any request for a Eurocurrency Rate Loan or a Base Rate Loan as to which the interest rate is determined with reference to the Eurocurrency Base Rate or a conversion to or continuation thereof that (a) deposits (whether in Dollars or an Alternative Currency) are not being offered to banks in the applicable offshore interbank market for such currency for the applicable amount and Interest Period of such
Eurocurrency Rate Loan, (b) adequate and reasonable means do not exist for determining the Eurocurrency Base Rate for any requested Interest Period with respect to a proposed Eurocurrency Rate Loan (whether denominated in Dollars or an Alternative Currency) or in connection with a Base Rate Loan, or (c) the Eurocurrency Base Rate for any requested Interest Period with respect to a proposed Eurocurrency Rate Loan or in connection with a Base Rate Loan does not adequately and fairly reflect the cost to such Lenders
of funding such Eurocurrency Rate Loan, the Administrative Agent will promptly so notify Carpenter and each Lender.  Thereafter, the obligation of the Lenders to make or maintain Eurocurrency Rate Loans in the affected currency or currencies, and Base Rate Loan as to which the interest rate is determined with reference to the Eurocurrency Base Rate shall be suspended until the Administrative Agent (upon the instruction of the Required Lenders) revokes such notice and during such period Base Rate Loans
shall be made and continued based on the interest rate determined by the greater of clauses (a) and (b) in the definition of Base Rate.  Upon receipt of such notice, Carpenter may revoke any pending request for a Borrowing of, conversion to or continuation of Eurocurrency Rate Loans in the affected currency or currencies or, failing that, will be deemed to have converted such request into a request for a Committed Borrowing of Base Rate Loans in the amount specified therein.

 

   3.04    Increased
Costs.

 

(a) Increased Costs Generally.  If any
Change in Law shall:

 

    (i) impose, modify or deem applicable any
reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except (A) any reserve requirement reflected in the Eurocurrency Rate and (B) the requirements of the Bank of England and the Financial Services Authority or the European Central Bank reflected in the Mandatory Cost, other than as set forth below) or the L/C Issuer;

 

    (ii) subject any Lender or the L/C Issuer
to any tax of any kind whatsoever with respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or any Eurocurrency Rate Loan made by it, or change the basis of taxation of payments to such Lender or the L/C Issuer in respect thereof (except for Indemnified Taxes or Other Taxes covered by Section 3.01 and the imposition of, or any change in the rate of, any Excluded Tax
payable by such Lender or the L/C Issuer);

 

    (iii) result in the failure of the Mandatory
Cost, as calculated hereunder, to represent the cost to any Lender of complying with the requirements of the Bank of England and/or the Financial Services Authority or the European Central Bank in relation to its making, funding or maintaining Eurocurrency Rate Loans; or

 

 

61

 

 

    (iv) impose on any Lender or the L/C Issuer or the
London interbank market any other condition, cost or expense affecting this Agreement or Eurocurrency Rate Loans made by such Lender or any Letter of Credit or participation therein;

 

and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurocurrency Rate Loan (or of maintaining its obligation to make any such Loan), or to increase the cost to such Lender or the L/C Issuer of participating in, issuing or maintaining any Letter of Credit (or of maintaining
its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or the L/C Issuer hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or the L/C Issuer, Carpenter will pay (or cause the applicable Subsidiary Borrower to pay) to such Lender or the L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or the L/C Issuer, as the case may be, for such
additional costs incurred or reduction suffered.

 

    (b) Capital
Requirements.  If any Lender or the L/C Issuer determines that any Change in Law affecting such Lender or the L/C Issuer or any Lending Office of such Lender or such Lender’s or the L/C Issuer’s holding company, if any, regarding capital requirements has or would have the effect of reducing the rate of return on such Lender’s or the L/C Issuer’s capital or on the capital of such Lender’s or the L/C Issuer’s holding company, if any, as a consequence of this
Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by the L/C Issuer, to a level below that which such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or the L/C Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s holding company with
respect to capital adequacy), then from time to time Carpenter will pay (or cause the applicable Subsidiary Borrower to pay) to such Lender or the L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company for any such reduction suffered.

 

    (c) Certificates
for Reimbursement.  A certificate of a Lender or the L/C Issuer setting forth the amount or amounts necessary to compensate such Lender or the L/C Issuer or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section and delivered to Carpenter shall be conclusive absent manifest error.  Carpenter shall pay (or cause the applicable Subsidiary Borrower to pay) such Lender or the L/C Issuer, as the case may be, the amount shown as due on any such certificate
within 10 days after receipt thereof.

 

    (d) Delay
in Requests.  Failure or delay on the part of any Lender or the L/C Issuer to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a waiver of such Lender’s or the L/C Issuer’s right to demand such compensation, provided that no Borrower shall be required to compensate a Lender or the L/C Issuer pursuant to the foregoing provisions
of this Section for any increased costs incurred or reductions suffered more than nine months prior to the date that such Lender or the L/C Issuer, as the case may be, notifies Carpenter of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or the L/C Issuer’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended
to include the period of retroactive effect thereof).

 

 

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    (e) Additional
Reserve Requirements.  Carpenter shall pay (or cause the applicable Subsidiary Borrower to pay) to each Lender, as long as such Lender shall be required to comply with any reserve ratio requirement or analogous requirement of any central banking or financial regulatory authority imposed in respect of the maintenance of the Commitments or the funding of the Eurocurrency Rate Loans, such additional costs (expressed as a percentage per annum and rounded upwards, if necessary, to the nearest five
decimal places) equal to the actual costs allocated to such Commitment or Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive), which in each case shall be due and payable on each date on which interest is payable on such Loan, provided Carpenter shall have received at least 10 days’ prior notice (with a copy to the Administrative Agent) of
such additional interest or costs from such Lender.  If a Lender fails to give notice 10 days prior to the relevant Interest Payment Date, such additional interest or costs shall be due and payable 10 days from receipt of such notice.

 

   3.05    Compensation
for Losses.  Upon demand of any Lender (with a copy to the Administrative Agent) from time to time, Carpenter shall promptly compensate (or cause the applicable Subsidiary Borrower to compensate) such Lender for and hold such Lender harmless from any loss, cost or expense incurred by it as a result of:

 

    (a) any continuation, conversion, payment
or prepayment of any Loan other than a Base Rate Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise);

 

    (b) any failure by any Borrower (for a reason
other than the failure of such Lender to make a Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the date or in the amount notified by Carpenter or the applicable Subsidiary Borrower;

 

    (c) any failure by any Borrower to make
payment of any Loan or drawing under any Letter of Credit (or interest due thereon) denominated in an Alternative Currency on its scheduled due date or any payment thereof in a different currency; or

 

    (d) any assignment of a Eurocurrency Rate
Loan on a day other than the last day of the Interest Period therefor as a result of a request by Carpenter pursuant to Section 11.13;

 

including any loss of anticipated profits, any foreign exchange losses and any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan, from fees payable to terminate the deposits from which such funds were obtained or from the performance of any foreign exchange contract.  Carpenter
shall also pay (or cause the applicable Subsidiary Borrower to pay) any customary administrative fees charged by such Lender in connection with the foregoing.

 

    For purposes of calculating amounts payable by Carpenter (or the applicable Subsidiary Borrower) to the Lenders under this Section
3.05, each Lender shall be deemed to have funded each Eurocurrency Rate Loan made by it at the Eurocurrency Base Rate used in determining the Eurocurrency Rate for such Loan by a matching deposit or other borrowing in the offshore interbank market for such currency for a comparable amount and for a comparable period, whether or not such Eurocurrency Rate Loan was in fact so funded.

 

 

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   3.06    Mitigation
Obligations; Replacement of Lenders.

 

    (a) Designation
of a Different Lending Office.  If any Lender requests compensation under Section 3.04, or any Borrower is required to pay any additional amount to any Lender, the L/C Issuer, or any Governmental Authority for the account of any Lender or the L/C Issuer pursuant to Section 3.01,
or if any Lender gives a notice pursuant to Section 3.02, then such Lender or the L/C Issuer shall, as applicable, use reasonable efforts to designate a different Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender or the L/C Issuer, such designation or assignment
(i) would eliminate or reduce amounts payable pursuant to Section 3.01 or 3.04, as the case may be, in the future, or eliminate the need for the notice pursuant to Section 3.02,
as applicable, and (ii) in each case, would not subject such Lender or the L/C Issuer, as the case may be, to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender or the L/C Issuer, as the case may be.  Carpenter hereby agrees to pay (or to cause the applicable Subsidiary Borrower to pay) all reasonable costs and expenses incurred by any Lender or the L/C Issuer in connection with any such designation or assignment.

 

    (b) Replacement
of Lenders.  If any Lender requests compensation under Section 3.04, or if any Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, Carpenter may replace such Lender in accordance
with Section 11.13.

 

   3.07    Survival.  All
of the Borrowers’ obligations under this Article III shall survive termination of the Aggregate Commitments, repayment of all other Obligations hereunder, and resignation of the Administrative Agent.

 

ARTICLE IV
CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

 

   4.01    Conditions
of Initial Credit Extension.  The obligation of the L/C Issuer and each Lender to make its initial Credit Extension hereunder is subject to satisfaction of the following conditions precedent:

 

    (a) The Administrative Agent’s receipt
of the following, each of which shall be originals or telecopies (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Borrower, each dated the Closing Date (or, in the case of certificates of governmental officials, a recent date before the Closing Date) and each in form and substance satisfactory to the Administrative Agent and each of the Lenders:

 

(i) executed counterparts of this Agreement, sufficient in number for distribution to the Administrative Agent, each Lender and Carpenter;

 

(ii) Notes executed by the Borrowers in favor of each Lender requesting Notes;

 

 

64

 

 

(iii) such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Borrower as the Administrative
Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which such Borrower is a party;

 

(iv) such documents and certifications as the Administrative Agent may reasonably require to evidence that each Borrower is duly organized or formed, and that each
Borrower is validly existing, in good standing and qualified to engage in business in each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect;

 

(v) a favorable opinion of counsel to the Borrowers, addressed to the Administrative Agent and each Lender;

 

(vi) a certificate of a Responsible Officer of each Borrower either (A) attaching copies of all consents, licenses and approvals required in connection with the
execution, delivery and performance by such Borrower and the validity against such Borrower of the Loan Documents to which it is a party, and such consents, licenses and approvals shall be in full force and effect, or (B) stating that no such consents, licenses or approvals are so required;

 

(vii) a certificate signed by a Responsible Officer of Carpenter certifying (A) that the conditions specified in Sections
4.02(a) and (b) have been satisfied, (B) that there has been no event or circumstance since the date of the June 30, 2009 that has had or could be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect; and (C) the current Debt Ratings;

 

(viii) a duly completed Compliance Certificate as of the last day of the fiscal quarter of the Company ended on September 30, 2009, signed by a Responsible Officer
of the Company;

 

(ix) evidence that the Existing Credit Agreement has been, or concurrently with the Closing Date is being, terminated and all obligations thereunder have been or,
concurrently with the Closing Date are being, paid in full, or in the case of letters of credit, cash-collateralized or otherwise adequately supported; and

 

(x) such other assurances, certificates, documents, consents or opinions as the Administrative Agent, the L/C Issuer, the Swing Line Lender or the Required Lenders
reasonably may require.

 

    (b) Any fees required to be paid on or before
the Closing Date shall have been paid.

 

    (c) Unless waived by the Administrative
Agent, Carpenter shall have paid all reasonable fees, charges and disbursements of counsel to the Administrative Agent (directly to such counsel if requested by the Administrative Agent) to the extent actually incurred and invoiced prior to or on the Closing Date, plus such additional amounts of such fees, charges and disbursements as shall constitute its reasonable estimate of such fees, charges and disbursements incurred or to be incurred by it through the closing proceedings (provided that such estimate shall
not thereafter preclude a final settling of accounts between Carpenter and the Administrative Agent).

 

 

65

 

 

    Without limiting the generality of the provisions of the last paragraph of Section
9.03, for purposes of determining compliance with the conditions specified in this Section 4.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

 

   4.02    Conditions
to all Credit Extensions.  The obligation of each Lender to honor any Request for Credit Extension (other than a Committed Loan Notice requesting only a conversion of Committed Loans to the other Type, or a continuation of Eurocurrency Rate Loans) is subject to the following conditions precedent:

 

(a) The representations and warranties of (i) the Borrowers contained in Article
V and (ii) each Borrower contained in each other Loan Document or in any document furnished at any time under or in connection herewith or therewith, shall be true and correct in all material respects (unless such representation and warranty is subject to a materiality or Material Adverse Effect qualifier in which case it will be true and correct in all respects) on and as of the date of such Credit Extension, except to the extent that such representations and warranties specifically refer to an earlier
date, in which case they shall be true and correct as of such earlier date, and except that for purposes of this Section 4.02, the representations and warranties contained in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to
clauses (a) and (b), respectively, of Section 6.01.

 

(b) No Default shall exist, or would result from such proposed Credit Extension or the application of the proceeds thereof.

 

(c) The Administrative Agent and, if applicable, the L/C Issuer or the Swing Line Lender shall have received a Request for Credit Extension in accordance with the
requirements hereof.

 

(d) If the applicable Borrower is a Subsidiary Borrower, then the conditions of Section
2.15 to the designation of such Borrower as a Subsidiary Borrower shall have been met to the satisfaction of the Administrative Agent.

 

(e) In the case of a Credit Extension to be denominated in an Alternative Currency, the fact that no Lender shall have notified the Administrative Agent (which shall
promptly notify the applicable Borrower and the other Lenders) within two Business Days of such Lender’s receipt of the Committed Loan Notice for such Borrowing that deposits in the relevant currency are not available to such Lender in the applicable interbank market for the relevant Interest Period and there shall not have occurred any change in national or international financial, political or economic conditions or currency exchange rates or exchange controls which in the reasonable opinion of the Administrative
Agent, the Required Lenders (in the case of any Loans to be denominated in an Alternative Currency) or the L/C Issuer (in the case of any Letter of Credit to be denominated in an Alternative Currency) would make it impracticable for such Credit Extension to be denominated in the relevant Alternative Currency.

 

 

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    Each Request for Credit Extension (other than a Committed Loan Notice requesting only a conversion of Committed Loans to the other Type or a continuation
of Eurocurrency Rate Loans) submitted by Carpenter shall be deemed to be a representation and warranty that the conditions specified in Sections 4.02(a) and (b) have been satisfied on and as of the date of the applicable Credit Extension.

 

ARTICLE V
REPRESENTATIONS AND WARRANTIES

 

    The Borrowers represent and warrant to the Administrative Agent, the L/C Issuer and the Lenders that:

 

   5.01    Existence,
Qualification and Power; Compliance with Laws.  The Borrowers and their respective Subsidiaries (a) are corporations or other entities duly organized, validly existing and in good standing under the Laws of the jurisdiction of their respective incorporation or organization, (b) have all requisite power and authority and all governmental licenses, authorizations, consents and approvals (i) to own or lease their respective assets and carry on their respective business and (ii) to execute, deliver,
and perform their respective obligations under the Loan Documents to which they are a party, (c) are duly qualified and licensed and are in good standing under the Laws of each jurisdiction where their ownership, lease or operation of properties or the conduct of their respective businesses require such qualification or license and (d) are in compliance with all Laws, except in each case referred to in clause (b)(i), (c) and this clause (d), to the extent that failure to do so could not reasonably be expected
to have a Material Adverse Effect.

 

   5.02    Authorization;
No Contravention.  The execution, delivery and performance by each Borrower of each Loan Document to which it is party, has been duly authorized by all necessary corporate or similar action, and do not and will not (a) contravene the terms of its Organization Documents, (b) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (i) any material Contractual Obligation to which such Person is a party or affecting such
Person or any material properties of such Person or any of its Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject or (c) violate any Law.

 

5.03    Governmental
and Other Authorizations.  No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, any Borrower of this Agreement or any other Loan Document, which has not been obtained.

 

5.04    Binding
Effect.  This Agreement has been, and each other Loan Document, when delivered hereunder, will have been, duly executed and delivered by each Borrower that is party thereto.  This Agreement constitutes, and each other Loan Document to which any Borrower is a party when executed and delivered will constitute, a legal, valid and binding obligation of such Borrower enforceable against such 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 equitable principles of general applicability (regardless of whether enforcement is sought by proceedings in equity or at law).

 

 

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5.05    Financial
Condition.

 

(a) Annual Financial Statements.  The consolidated
balance sheet of Carpenter and its Consolidated Subsidiaries as of June 30, 2009 and the related consolidated statements of income and cash flows for the fiscal year then ended, reported on by PricewaterhouseCoopers and set forth in Carpenter’s 2009 Form 10–K, fairly present in all material respects, in conformity with GAAP, the consolidated financial position of Carpenter and its Consolidated Subsidiaries as of such date and their consolidated results of operations and cash flows for such fiscal
year.

 

(b) Interim Financial Statements.  The
unaudited consolidated balance sheet of Carpenter and its Consolidated Subsidiaries as of September 30, 2009 and the related unaudited consolidated statements of income and cash flows for the three months then ended, set forth in Carpenter’s Latest Form 10–Q, fairly present in all material respects, in conformity with GAAP applied on a basis consistent with the financial statements referred to in Section
5.05(a), the consolidated financial position of Carpenter and its Consolidated Subsidiaries as of such date and their consolidated results of operations and cash flows for such three–month period (subject to normal year–end audit adjustments and the absence of footnotes required under GAAP).

 

(c) Material Adverse Effect.  Since June
30, 2009, there has been no Material Adverse Effect, and no event or development has occurred which could reasonably be expected to result in a Material Adverse Effect.

 

(d) Post-Closing Financial Statements.  The
financial statements delivered to the Lenders pursuant to Section 6.01(a) and (b), if any, (i) have been and will be prepared in accordance with GAAP (except as may otherwise be permitted under Section
6.01(a) and (b)) and (ii) present fairly in all material respects (on the basis disclosed in the footnotes to such financial statements, if any) the consolidated financial condition, results of operations and cash flows of Carpenter and its Consolidated Subsidiaries as of the respective dates thereof and for the respective periods covered thereby.

 

(e) Disclosure of Liabilities and Obligations.  Except
as fully reflected in the financial statements referred to in Section 5.05(a), (b) and (d) and the notes thereto, there are no material liabilities or obligations with respect to
Carpenter or any of its Consolidated Subsidiaries of any nature whatsoever that are required in accordance with GAAP to be reflected in such financial statements and that are not so reflected.

 

   5.06    Litigation.  There
are no actions, suits, investigations or legal, equitable, arbitration or administrative proceedings pending or, to the knowledge of any Borrower, threatened against or affecting Carpenter or any of its Subsidiaries or against any of their properties or revenues that (a) purport to affect or pertain to any Loan Document or (b) if determined adversely, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect.

 

 

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5.07    No
Default.  Neither Carpenter nor any Subsidiary is in default in any respect under any Contractual Obligation which default could reasonably be expected to have a Material Adverse Effect.  No Default or Event of Default has occurred or exists or would result from the consummation of the transactions contemplated by this Agreement and the other Loan Documents.

 

5.08    Ownership
of Property; Liens.  Carpenter and each Subsidiary has good record and marketable title in fee simple to, or valid leasehold interests in, all real property necessary in the ordinary conduct of its business, except for such defects in title as would not, individually or in the aggregate, have a Material Adverse Effect.  As of the Closing Date, the property of Carpenter and its Subsidiaries is subject to no Liens, other than Liens permitted by Section
7.02.

 

5.09    Environmental
Compliance.  Carpenter and its Subsidiaries conduct in the ordinary course of business a review of the effect of existing Environmental Laws and claims alleging potential liability or responsibility for violation of any Environmental Law on their respective businesses, operations and properties, and as a result thereof each Borrower has reasonably concluded that such Environmental Laws and claims would not, individually or in the aggregate, have a Material Adverse Effect.

 

5.10    Insurance.  The
properties of Carpenter and its Subsidiaries are insured with financially sound and reputable insurance companies not Affiliates of Carpenter, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where Carpenter or its Subsidiaries operate.

 

5.11    Taxes.  Carpenter
and its Subsidiaries have filed all Federal, state, material local, material foreign and other material tax returns and reports required to be filed, and have paid all Federal, state, material local, material foreign and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets otherwise due and payable, except those which are being contested in good faith by appropriate proceedings and for which adequate reserves have been provided
in accordance with GAAP.  There is no proposed tax assessment against Carpenter or any Subsidiary that would, if made, have a Material Adverse Effect.  Neither any Borrower or any Subsidiary thereof is party to any tax sharing agreement.

 

5.12    ERISA
and Foreign Benefit Plan Compliance.

 

    (a) Each Plan is in compliance in all material
respects with the applicable provisions of ERISA, the Code and other Federal or state Laws.  Each Plan that is intended to qualify under Section 401(a) of the Code has received a favorable determination letter from the IRS or an application for such a letter is currently being processed by the IRS with respect thereto and, to the knowledge of Carpenter, nothing has occurred which would prevent, or cause the loss of, such qualification.  Carpenter and each ERISA Affiliate have made all required
contributions to each Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made with respect to any Plan.

 

 

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    (b) There are no pending or, to the knowledge
of Carpenter, threatened claims, actions or lawsuits (other than routine claims for benefits), or action by any Governmental Authority, with respect to any Plan that could be reasonably expected to have a Material Adverse Effect.  There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or could be reasonably expected to result in a Material Adverse Effect.

 

    (c) (i)  No ERISA Event has occurred
or is reasonably expected to occur; (ii) no Pension Plan has any Unfunded Pension Liability; (iii) neither Carpenter nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) neither Carpenter nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has occurred which, with the giving of notice under Section 4219
of ERISA, would result in such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither Carpenter nor any ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA.

 

    (d) With respect to any Foreign Benefit
Plan, (i) each Foreign Benefit Plan is in compliance in all material respects with applicable Law except to the extent set forth in subparagraph (ii), (ii) the aggregate of the accumulated benefit obligations under all Foreign Benefit Plans does not exceed the current fair market value of the assets held in the trust or similar funding vehicles for such Foreign Benefit Plans in an amount in excess of $20,000,000, and (iii) reasonable reserves have been established in accordance with prudent business practice
or where required by ordinary accounting practices in the jurisdiction in which such Foreign Benefit Plan is maintained.  There are no material actions, suits or claims (other than routine claims for benefits) pending, or the knowledge of Carpenter, threatened against it or any of the Borrowers or any of their respective Subsidiaries with respect to any Foreign Benefit Plan.

 

   5.13    Subsidiaries.  Schedule
5.13 sets forth a complete and accurate list as of the Closing Date of all Subsidiaries of Carpenter.  Schedule 5.13 sets forth as of the Closing Date the jurisdiction of formation of each such Subsidiary, the number of authorized shares of each class of Equity Interests of each such Subsidiary, the number of outstanding shares of each class of Equity Interests, the number and percentage
of outstanding shares of each class of Equity Interests of each such Subsidiary owned (directly or indirectly) by any Person and the number and effect, if exercised, of all Equity Equivalents with respect to Capital Stock of each such Subsidiary.  The true and correct U.S. taxpayer identification number of Carpenter and each Subsidiary Borrower that is a Domestic Subsidiary and a party hereto on the Closing Date is set forth on Schedule
5.13.  The true and correct unique identification number of each Designated Borrower that is a Foreign Subsidiary and a party hereto on the Closing Date that has been issued by its jurisdiction of organization and the name of such jurisdiction are set forth on Schedule 5.13.

 

 

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   5.14    Margin
Regulation; Investment Company Act.

 

    (a) None of Carpenter and its Subsidiaries
is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying “margin stock” within the meaning of Regulation U.  No part of the Letters of Credit or proceeds of the Loans will be used, directly, or indirectly, for the purpose of purchasing or carrying any “margin stock” within the meaning of Regulation U.  Following the application of the proceeds of each Borrowing or drawing under each
Letter of Credit, not more than 25% of the value of the assets (either of the applicable Borrower only or of such Borrower and its Subsidiaries on a consolidated basis) subject to the provisions of Section 7.02 or Section 7.05 or subject to any restriction contained in any agreement or instrument
between any Borrower and any Lender or any Affiliate of any Lender relating to Indebtedness and within the scope of Section 8.01(f) will be margin stock.  None of the transactions contemplated by this Agreement (including the direct or indirect use of the proceeds of the Loans) will violate or result in a violation of the Securities Act, as amended, the Exchange Act or regulations issued pursuant
thereto, or Regulations T, U or X.

 

    (b) None of Carpenter, any Person Controlling
Carpenter, or any Subsidiary is or is required to be registered as an “investment company” under the Investment Company Act of 1940.

 

   5.15    Disclosure.  No
statement, information, report, representation, or warranty made by any Borrower in any Loan Document or furnished to the Administrative Agent or any Lender by or on behalf of any Borrower in connection with any Loan Document contains any untrue statement of a material fact or omits any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

   5.16    Intellectual
Property.  Carpenter and its Subsidiaries own, or possess the right to use, all of the trademarks, service marks, trade names, copyrights, patents, patent rights, franchises, licenses and other rights that are reasonably necessary for the operation of their respective businesses, without conflict with the rights of any other Person.  To the knowledge of any Borrower, no slogan or other advertising device, product, process, method, substance, part or other material now employed, or now
contemplated to be employed, by Carpenter or any Subsidiary infringes upon any rights held by any other Person.  No claim or litigation regarding any of the foregoing is pending or, to the knowledge of any Borrower, threatened, and no patent, invention, device, application, principle or any Law is pending or, to the knowledge of any Borrower, proposed, which, in either case, could reasonably be expected to have a Material Adverse Effect.

 

   5.17    Compliance
with Laws.  Each Borrower and each Subsidiary thereof is in compliance in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure to comply therewith, either individually or in the aggregate, could not reasonably
be expected to have a Material Adverse Effect.

 

 

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   5.18    Representations
as to Foreign Obligors.  Each Foreign Obligor represents and warrants to the Administrative Agent and the Lenders that:

 

(a) Such Foreign Obligor is subject to civil and commercial Laws with respect to its obligations under this Agreement and the other Loan Documents to which it is
a party (collectively as to such Foreign Obligor, the “Applicable Foreign Obligor Documents”), and the execution, delivery and performance by such Foreign Obligor of the Applicable Foreign Obligor Documents constitute and will constitute private and commercial acts and not public or governmental acts.  Neither such Foreign Obligor nor any of its property has any immunity from jurisdiction
of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) under the Laws of the jurisdiction in which such Foreign Obligor is organized and existing in respect of its obligations under the Applicable Foreign Obligor Documents.

 

(b) The Applicable Foreign Obligor Documents are in proper legal form under the Laws of the jurisdiction in which such Foreign Obligor is organized and existing
for the enforcement thereof against such Foreign Obligor under the Laws of such jurisdiction, and to ensure the legality, validity, enforceability, priority or admissibility in evidence of the Applicable Foreign Obligor Documents.  It is not necessary to ensure the legality, validity, enforceability, priority or admissibility in evidence of the Applicable Foreign Obligor Documents that the Applicable Foreign Obligor Documents be filed, registered or recorded with, or executed or notarized before, any
court or other authority in the jurisdiction in which such Foreign Obligor is organized and existing or that any registration charge or stamp or similar tax be paid on or in respect of the Applicable Foreign Obligor Documents or any other document.

 

(c) There is no material tax, levy, impost, duty, fee, assessment or other governmental charge, or any deduction or withholding, imposed by any Governmental Authority
in or of the jurisdiction in which such Foreign Obligor is organized and existing either (i) on or by virtue of the execution or delivery of the Applicable Foreign Obligor Documents or (ii) on any payment to be made by such Foreign Obligor pursuant to the Applicable Foreign Obligor Documents.

 

(d) The execution, delivery and performance of the Applicable Foreign Obligor Documents executed by such Foreign Obligor are, under applicable foreign exchange control
regulations of the jurisdiction in which such Foreign Obligor is incorporated or organized and existing, not subject to any notification or authorization except such as have been made or obtained.

 

   5.19    OFAC;
Anti-Terrorism Laws.

 

    (a) No Borrower is a Sanctioned Person or
does business in a Sanctioned Country or with a Sanctioned Person, in each case in violation of the economic sanctions of the United States administered by OFAC.

 

    (b) Neither the making of the Loans hereunder
nor the use of the proceeds thereof will violate the Patriot Act, the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto.  The Borrowers and their Subsidiaries are in compliance in all material respects with the PATRIOT Act.

 

 

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ARTICLE VI
AFFIRMATIVE COVENANTS

 

    The Borrowers agree that so long as any Lender has any Commitment hereunder, any Obligation or other amount payable hereunder or under any Note or other
Loan Document or any L/C Obligation remains unpaid or any Letter of Credit remains unexpired:

 

   6.01    Information.  Carpenter
will furnish, or cause to be furnished, to the Administrative Agent, and the Administrative Agent will furnish each of the Lenders:

 

(a) Annual Financial Statements.  As soon
as available and in any event within 90 days (or, if earlier and if applicable to Carpenter, the annual report deadline under the Exchange Act rules and regulations) after the end of each fiscal year of Carpenter, a consolidated balance sheet and income statement of Carpenter and its Consolidated Subsidiaries, as of the end of such fiscal year, and the related consolidated statements of operations and retained earnings and cash flows for such fiscal year, setting forth in comparative form consolidated figures
for the preceding fiscal year, all such financial statements to be in reasonable form and detail and audited by independent certified public accountants of recognized national standing reasonably acceptable to the Administrative Agent and accompanied by an opinion of such accountants (which shall not be subject to any qualifications or exceptions as to the scope of the audit nor to any qualifications or exceptions not reasonably acceptable to the Required Lenders) to the effect that such consolidated financial
statements have been prepared in accordance with GAAP and present fairly the consolidated financial position and consolidated results of operations and cash flows of Carpenter and its Consolidated Subsidiaries in accordance with GAAP consistently applied (except for changes with which such accountants concur).

 

(b) Quarterly Financial Statements.  As
soon as available, and in any event within 45 days (or, if earlier and if applicable to Carpenter, the quarterly report deadline under the Exchange Act rules and regulations) after the end of each of the first three fiscal quarters in each fiscal year of Carpenter, a consolidated balance sheet of Carpenter and its Consolidated Subsidiaries as of the end of such fiscal quarter, together with related consolidated statements of operations and retained earnings and cash flows for such fiscal quarter and the then
elapsed portion of such fiscal year, setting forth in comparative form consolidated figures for the corresponding periods of the preceding fiscal year, all such financial statements to be in form and detail and reasonably acceptable to the Administrative Agent, and accompanied by a certificate of the chief financial officer of Carpenter to the effect that such quarterly financial statements have been prepared in accordance with GAAP and present fairly in all material respects the consolidated financial position
and consolidated results of operations and cash flows of Carpenter and its Consolidated Subsidiaries in accordance with GAAP consistently applied, subject to changes resulting from normal year–end audit adjustments and the absence of footnotes required by GAAP.

 

 

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(c) Compliance Certificate.  At the time
of delivery of the financial statements provided for in Sections 6.01(a) and 6.01(b) above, a duly completed compliance certificate signed by the chief executive officer, chief financial officer, treasurer or controller of Carpenter, substantially in the form of Exhibit
E (the “Compliance Certificate”) (i) demonstrating compliance with the financial covenants contained in Section 7.12 by calculation thereof as of the end of the fiscal period covered by such financial statements, (ii) stating that no Default or Event of Default exists, or
if any Default or Event of Default does exist, specifying the nature and extent thereof and what action Carpenter proposes to take with respect thereto, (iii) stating whether, since the date of the most recent financial statements delivered hereunder, there has been any material change in GAAP as applied in the preparation of the financial statements of Carpenter and its Consolidated Subsidiaries, and, if so, describing such change.

 

(d) Reports.  Promptly after the same are
filed or made available, copies, which may be in electronic format, of each annual report, proxy or financial statement or other report or communication sent to the stockholders of Carpenter, and copies of all annual, regular, periodic and special reports and registration statements which Carpenter may file or be required to file with the Securities and Exchange Commission under Section 13 or 15(d) of the Securities Exchange Act of 1934, and not otherwise required to be delivered to the Administrative Agent pursuant
hereto.

 

(e) Notices.  Prompt notice, after obtaining
knowledge thereof, of: (i) the occurrence of any Default or Event of Default; (ii) any matter that has resulted or may result in a Material Adverse Effect, including (A) breach or non–performance of, or any default under, a Contractual Obligation of Carpenter or any Subsidiary, which could reasonably be expected to have a Material Adverse Effect; (B) any dispute, litigation, investigation, proceeding or suspension between Carpenter or any Subsidiary and of Governmental Authority, which could reasonably
be expected to have a Material Adverse Effect; (C) the commencement of, or any material development in, any litigation or proceeding affecting Carpenter or any Subsidiary, including pursuant to any applicable Environmental Law, which could reasonably be expected to have a Material Adverse Effect; (D) any litigation, investigation or proceeding affecting any Borrower in which the amount involved exceeds $5,000,000, or in which injunctive relief or similar relief is sought, which relief, if granted, could be reasonably
expected to have a Material Adverse Effect; (E) the occurrence of any ERISA Event, which could reasonably be expected to have a Material Adverse Effect; (F) any material change in accounting policies or financial reporting practice by Carpenter or any Subsidiary; and (G) of any announcement by Moody’s or S&P of any change in either Debt Rating.  Each notice pursuant to this Section 6.01(e) shall
(i) be accompanied by a statement of a Responsible Officer of Carpenter setting forth details of the occurrence referred to therein and stating what action Carpenter has taken and proposes to take with respect thereto and (ii) describe with particularity any and all provisions of this Agreement or other Loan Document that have been breached.

 

(f) Annual Business Plan and Budget.  Prior
to the 30th day after the beginning of each fiscal year of Carpenter, an annual business plan and budget of Carpenter and its Consolidated Subsidiaries.

 

(g) Other Information.  With reasonable
promptness upon request therefor, such other information regarding the business, properties or financial condition of Carpenter or any Subsidiary as the Administrative Agent or the Required Lenders may reasonably request.

 

 

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(h) Lender Communications.  Documents
required to be delivered pursuant to Section 6.01(a), (b) or (d) (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically
and if so delivered, shall be deemed to have been delivered on the date (i) on which Carpenter posts such documents, or provides a link thereto on Carpenter’s website on the Internet at the website address listed on Schedule 11.02; or (ii) on which such documents are posted on Carpenter’s behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent
have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); provided that: (i) Carpenter shall deliver paper copies of such documents to the Administrative Agent or any Lender that requests Carpenter to deliver such paper copies until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender and (ii) Carpenter
shall notify the Administrative Agent and each Lender (by telecopier or electronic mail) of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents.  Notwithstanding anything contained herein, in every instance Carpenter shall be required to provide a paper copy of the Compliance Certificates required
by Section 6.01(c) to the Administrative Agent.  Except for such Compliance Certificates, the Administrative Agent shall have no obligation to request the delivery or to maintain copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by Carpenter with any such request for delivery, and each Lender shall be solely responsible for requesting
delivery to it or maintaining its copies of such documents.

 

Each Borrower hereby acknowledges that (a) the Administrative Agent and/or the Arranger will make available to the Lenders and the L/C Issuer materials and/or information provided by or on behalf of such Borrower hereunder (collectively, “Borrower
Materials”) by posting the Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and (b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive material non-public information with
respect to any of the Borrowers or their respective Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such Persons’ securities.  Each Borrower hereby agrees that (w) all Borrower Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on
the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the Borrowers shall be deemed to have authorized the Administrative Agent, the Arranger, the L/C Issuer and the Lenders to treat such Borrower Materials as not containing any material non-public information with respect to the Borrowers or their respective securities for purposes of United States Federal and state securities laws (provided, however,
that to the extent such Borrower Materials constitute Information, they shall be treated as set forth in Section 11.07); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Side Information;” and (z) the Administrative Agent and the Arranger shall be entitled to treat any Borrower Materials that are
not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Side Information.”  Notwithstanding the foregoing, no Borrower shall be under any obligation to mark any Borrower Materials “PUBLIC.”

 

6.02    Payment
of Obligations.  Carpenter will, and will cause each of its Subsidiaries to, pay and discharge as the same shall become due and payable (after giving effect to all applicable grace and cure periods), all its obligations and liabilities which if not paid and discharged could reasonably be expected to have a Material Adverse Effect, including: (a) all tax liabilities, assessments and governmental charges or levies upon it or its properties or assets, unless the same are being contested in good
faith by appropriate proceedings and adequate reserves in accordance with GAAP are being maintained by Carpenter or such Subsidiary; and (b) all lawful claims which, if unpaid, would by Law become a Lien (other than a Permitted Lien) upon its property.

 

 

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6.03    Preservation
of Existence, Etc.  Carpenter will, and will cause each of its Subsidiaries to, preserve, renew and maintain in full force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization; take all reasonable action to maintain all rights, privileges, permits licenses and franchises necessary in the normal conduct of its business, except in a transaction permitted by Section
7.04 or 7.05; and preserve or renew all of its registered patents, trademarks, trade names and service marks, the non–preservation or non–maintenance of which could reasonably be expected to have a Material Adverse Effect.

 

6.04    Maintenance
of Properties.  Carpenter will, and will cause each of its Subsidiaries to, (a) subject to the provisions of clause (b) of this Section 6.04, maintain, preserve and protect all of its material properties and equipment necessary in the operation of its business in good working order and condition, ordinary wear and tear excepted; and (b) make all necessary repairs thereto and renewals
and replacements thereof except where the failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

6.05    Maintenance
of Insurance.  Carpenter will, and will cause each of its Subsidiaries to, maintain with financially sound and reputable insurance companies not Affiliates of Carpenter, insurance with respect to its properties and business against loss or damage of the kinds customarily insured against by Persons engaged in the same or similar business, of such types and in such amounts as are customarily carried under similar circumstances by such other Persons.

 

6.06    Compliance
with Laws.  Carpenter will, and will cause each of its Subsidiaries to, comply in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its business or property, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith or a bona fide dispute exists with respect thereto or (b) the failure to comply therewith could not be reasonably expected to have
a Material Adverse Effect.

 

6.07    Books
and Records.  Carpenter will, and will cause each of its Subsidiaries to, maintain proper books of record and account, in which full, true and correct entries in conformity with GAAP shall be made of all financial transactions and matters involving the assets and business of Carpenter or such Subsidiary, as the case may be; and maintain such books of record and account in material conformity with all applicable requirements of any Governmental Authority having regulatory jurisdiction over Carpenter
or such Subsidiary, as the case may be.

 

6.08    Inspection
Rights.  Carpenter will, and will cause each of its Subsidiaries to, permit representatives and independent contractors of the Administrative Agent and each Lender to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, at such reasonable times during normal business hours and as often
as may be reasonably desired, upon reasonable advance notice to Carpenter all at the expense of Carpenter (provided that Carpenter shall only be obligated to reimburse the Administrative Agent and Lenders for such expense in connection with one such visit per fiscal year so long as no Event of Default then exists); provided, however,
that when an Event of Default exists, the Administrative Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing at the expense of Carpenter at any time during normal business hours and without advance notice.

 

 

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6.09    Compliance
with ERISA.  Carpenter will, and will cause each of its ERISA Affiliates to, (a) maintain each Plan in compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal or state Law; (b) cause each Plan which is qualified under Section 401(a) of the Code to maintain such qualification; and (c) make all required contributions to any Plan subject to Section 412 of the Code.

 

6.10    Use of Proceeds.  Each Borrower
will use the proceeds of the Credit Extensions for working capital and other general corporate purposes not in contravention of any Law or of any Loan Document, including, without limitation, making Investments permitted by this Agreement.

 

6.11    OFAC;
PATRIOT Act Compliance.  Each Borrower will, and will cause each of its Subsidiaries to, (a) refrain from doing business in a Sanctioned Country or with a Sanctioned Person, in each case in violation of the economic sanctions of the United States administered by OFAC, and (b) provide, to the extent commercially reasonable, such information and take such actions as are reasonably requested by the Administrative Agent or any Lender in order to assist the Administrative Agent and the Lenders in
maintaining compliance with the PATRIOT Act.

 

ARTICLE VII
NEGATIVE COVENANTS

 

    Each Borrower agrees that so long as any Lender has any Commitment hereunder, any Obligation or other amount payable hereunder or under any Note or other
Loan Document or any L/C Obligation remains unpaid or any Letter of Credit remains unexpired:

 

   7.01    Limitation
on Indebtedness.  Carpenter will not, nor will it cause or permit any Subsidiary to, directly or indirectly, incur, create, assume or permit to exist any Indebtedness except:

 

    (a) Indebtedness of Carpenter and its Subsidiaries
outstanding on the Closing Date and disclosed on Schedule 7.01 and any extensions, renewals or refinancings thereof; provided that (i) the amount of such Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension except by an amount equal to a reasonable
premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing commitments unutilized thereunder, (ii) the terms relating to principal amount, amortization, maturity, collateral (if any) and subordination (if any), and other material terms taken as a whole, of any such refinancing, refunding, renewing or extending Indebtedness, and of any agreement entered into and of any instrument issued in connection therewith,
are no less favorable in any material respect to the Borrowers or the Lenders than the terms of any agreement or instrument governing the Indebtedness being refinanced, refunded, renewed or extended and the interest rate applicable to any such extending, renewing or refinancing Indebtedness does not exceed the then applicable market interest rate and (iii) the existing letters of credit listed on Schedule
7.01 may only be extended, renewed or refinanced with Letters of Credit issued under this Agreement;

 

 

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    (b) Indebtedness of the Borrowers under this Agreement
and the other Loan Documents;

 

    (c) Indebtedness of Carpenter and its Subsidiaries
not otherwise permitted by this Section 7.01 incurred after the Closing Date in an aggregate principal amount not to exceed $350,000,000 at any time outstanding; provided that (i) up to $25,000,000 aggregate principal amount of such Indebtedness may be secured, (ii) no Default or Event of
Default shall have occurred and be continuing immediately before and immediately after giving effect to such incurrence and (iii) upon giving effect on a pro–forma basis to the incurrence of such Indebtedness and to the concurrent retirement of any other Indebtedness of Carpenter or any subsidiary, Carpenter shall be in compliance with the financial covenants set forth in Section 7.12; and

 

    (d) Purchase Money Indebtedness of Carpenter
and its Subsidiaries incurred after the Closing Date; provided that (i) such Indebtedness is issued and any Liens securing such Indebtedness are created concurrently with, or within 90 days after, the acquisition of the asset financed, (ii) such Indebtedness does not exceed the cost of the property being acquired on the date of the acquisition, plus any related costs of the acquisition or financing
of such property.

 

   7.02    Restriction
on Liens.  Carpenter will not, and will not cause or permit any of its Subsidiaries to, create, incur, assume or permit to exist any Lien on any property or assets (including Equity Interests or other securities of any Person, including any Subsidiary of Carpenter) now owned or hereafter acquired by it or on any income or rights in respect thereof, except Liens described in any of the following clauses (collectively, the “Permitted
Liens”):

 

    (a) Liens existing on the Closing Date and
listed on Schedule 7.02 hereto, provided that such Liens shall secure only those obligations which they secure on the date hereof (and permitted extensions, renewals and refinancings of such obligations) and shall not subsequently apply to any other property or assets of Carpenter and its
Subsidiaries (other than accessions to and the proceeds of the property or assets subject to such Liens to the extent provided by the terms thereof on the date hereof);

 

    (b) existing and future Liens (other than
any Liens imposed by ERISA or pursuant to any Environmental Law) for taxes, assessments or governmental charges or levies not yet due or being contested in good faith and by appropriate proceedings diligently pursued for which adequate reserves (in the good faith judgment of the management of Carpenter) have been established in accordance with GAAP (and as to which the property or assets subject to any such Lien is not yet subject to foreclosure, sale or loss on account thereof);

 

 

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    (c) existing and future Liens imposed by Law securing
the charges, claims, demands or levies of landlords, carriers, warehousemen, mechanics, carriers and other like persons which were incurred in the ordinary course of business and which (i) do not, individually or in the aggregate, materially detract from the value of the property or assets which are material to the business of Carpenter or any of its Subsidiaries and which are the subject of such Lien or materially impair the use thereof in the operation of the business of Carpenter or any of its Subsidiaries
or (ii) which are being contested in good faith by appropriate proceedings diligently pursued, which proceedings have the effect of preventing the forfeiture or sale of the property or assets subject to such Lien;

 

    (d) Liens arising from judgments, decrees
or attachments (or securing of appeal bonds with respect thereto) in circumstances not constituting an Event of Default under Section 8.01;

 

    (e) existing and future Liens (other than
any Liens imposed by ERISA or pursuant to any Environmental Law) incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security or to secure the performance of tenders, statutory obligations, surety bonds (other than appeal bonds), bids, leases, government contracts, performance and return–of–money bonds and other similar obligations incurred in the ordinary course of business;

 

    (f) existing and future zoning restrictions,
easements, rights of way, licenses, reservations, covenants, conditions, waivers, restrictions on the use of property or other minor encumbrances or irregularities of title not securing Indebtedness which do not, individually or in the aggregate, materially impair the use of any property in the operation or business of Carpenter or any of its Subsidiaries or the value of such property for the purpose of such business;

 

    (g) Liens securing (i) the secured Indebtedness
permitted to be incurred under Section 7.01(c)(i) and (ii) Purchase Money Indebtedness permitted to be incurred under Section 7.01(d); provided that, with respect to clause (ii),
such Lien does not at any time encumber any property other than the property financed by such Indebtedness.

 

    (h) any Lien existing on any asset of any
Person at the time such Person becomes a Subsidiary of Carpenter; provided that (i) such Liens were not created in contemplation of such event and (ii) such Liens do not extend to any assets other than those affected thereby prior to such event;

 

    (i) any Lien on any asset of any Person
existing at the time such Person is merged or consolidated with or into Carpenter or a Subsidiary of Carpenter; provided that (i) such Liens were not created in contemplation of such event and (ii) such Liens do not extend to any assets other than those affected thereby prior to such event;

 

    (j) any Lien existing on any asset prior
to the acquisition thereof by Carpenter or a Subsidiary of Carpenter; provided that (i) such Liens were not created in contemplation of such event and (ii) such Liens do not extend to any assets other than those affected thereby prior to such event;

 

 

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    (k) existing and future Liens arising solely by virtue
of any statutory or common law provision relating to banker’s liens, rights of set–off or similar rights, in each case incurred in the ordinary course of business; and

 

(l) Liens other than those permitted by clause (a) through clause (k) of this Section
7.02 on property or assets of Carpenter and its Subsidiaries now owned or hereafter acquired by it, or on any income or rights in respect thereof, not in excess of 15% of Consolidated Tangible Net Worth.

 

7.03    Investments.  The
Borrower will not, and will not cause or permit any of its Subsidiaries to, make or acquire, any Investment in any Person, except the following (such Investments described below being herein referred to as “Permitted Investments”):

 

(a) Investments other than those permitted by Sections 7.03(a) through (h) existing
on the date hereof and listed on Part I Schedule 7.03;

 

(b) Investments held by Carpenter or such Subsidiary in the form of Cash Equivalents and Eligible Investments;

 

(c) advances to officers, directors and employees of Carpenter and Subsidiaries in an aggregate amount not to exceed $2,000,000 at any time outstanding, for travel,
entertainment, relocation and analogous ordinary business purposes;

 

(d) Investments of Carpenter, or of any Subsidiary thereof, in Carpenter or another Wholly-Owned Subsidiary
thereof;

 

(e) Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the sale or lease of goods or services in
the ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary in order to prevent or limit loss;

 

(f) Investments permitted by Section 7.04;

 

(g) Investments consisting of the acquisition by Carpenter or any of is Subsidiaries of assets or shares of Capital Stock of any other Person; provided,
that (i) no Default or Event of Default shall have occurred and be continuing, (ii) the Person whose assets or shares of Capital Stock are acquired pursuant to this clause (g) shall be engaged in substantially the same or related line of business as Carpenter and its Subsidiaries are engaged in as of the Closing Date and (iii) after giving effect to any such acquisition, Carpenter shall be in pro forma compliance with the covenants set forth in Section
7.12 of this Agreement;

 

(h) Investments in joint ventures and other non wholly-owned entities (i) existing on the date hereof and listed on Part II of Schedule
7.03 and (ii) made after the date hereof in an aggregate amount (excluding any such Investments permitted pursuant to Section 7.03(h)(i)) not to exceed fifteen percent (15%) of Consolidated Tangible Net Worth; and

 

(i) Investments, other than those permitted by clause (a) through clause (h) of this Section
7.03, made in the ordinary course of business and consistent with past practices of Carpenter and its Subsidiaries.

 

 

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7.04    Fundamental
Changes.  Carpenter will not, and will not cause or permit any of its Subsidiaries to, merge, consolidate with or into, or convey, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person, except that, so long as no Default or Event of Default exists or would result therefrom:

 

(a) any Subsidiary of a Borrower may merge with (i) such Borrower or Carpenter, provided that
such Borrower shall be the continuing or surviving Person, or in the case of a merger involving Carpenter, Carpenter shall be the continuing or surviving Person, or (ii) any one or more Subsidiaries (other than a Borrower) of such Borrower, provided that when any Wholly-Owned Subsidiary is merging with another Subsidiary, the Wholly-Owned Subsidiary shall be the continuing or surviving Person; and

 

(b) any Subsidiary of a Borrower may sell all or substantially all of its assets (upon voluntary liquidation or otherwise), to such Borrower or Carpenter or to another
Subsidiary (other than a Borrower) of such Borrower; provided that if the seller in such a transaction is a Wholly–Owned Subsidiary, then the purchaser must also be a Wholly–Owned Subsidiary.

 

7.05    Dispositions.  Carpenter
will not, and will not cause or permit any of its Subsidiaries to, make any Disposition or enter into any agreement to make any Disposition, except:

 

(a) Dispositions of obsolete or worn out property, whether now owned or hereafter acquired, in the ordinary course of business;

 

(b) Dispositions of inventory and in the ordinary course of business;

 

(c) Dispositions of equipment or real property to the extent that (i) such property is exchanged for credit against the purchase price of similar replacement property
or (ii) the proceeds of such Disposition are reasonably promptly applied to the purchase price of such replacement property;

 

(d) Dispositions of property by Carpenter or any Subsidiary of Carpenter to Carpenter or to a Wholly–Owned Subsidiary of Carpenter;

 

(e) Dispositions permitted by Section 7.04; and

 

(f) in addition to the Dispositions permitted by clause (a) through clause (e) of this Section
7.05, Dispositions of property of Carpenter or any Subsidiary, including Capital Stock of any Subsidiary, provided that such dispositions consummated during the term of this Agreement in the aggregate do not exceed 15% of the total assets of Carpenter and its Subsidiaries;

 

provided, however, that any Disposition pursuant to
clauses (a) through (e) of property having a book value in excess of $25,000,000 shall be for fair market value.

 

7.06    Restricted
Payments.  Carpenter will not, and will not cause or permit any of its Subsidiaries to, declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that:

 

(a) each Subsidiary may make Restricted Payments to Carpenter and to Wholly–Owned Subsidiaries (and, in the case of a Restricted Payment by a non–Wholly–Owned
Subsidiary, to Carpenter and any Subsidiary and to each other owner of Equity Interests of such Subsidiary on a pro–rata basis based on their relative ownership interests);

 

 

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(b) Carpenter and each Subsidiary may declare and make dividend payments or other distributions payable solely in the Equity Interests (exclusive of Disqualified
Stock) of such Person;

 

(c) Carpenter and each Subsidiary may purchase, redeem or otherwise acquire shares of its common stock; provided that,
(i) any such purchase, redemption or other acquisition for value shall not have a Material Adverse Effect and (ii) immediately prior to and after giving effect to any such proposed action, no Default or Event of Default shall have occurred and be continuing; and

 

(d) Carpenter may declare or pay cash dividends to its stockholders; provided that,
(i) any such declaration or payment shall not have a Material Adverse Effect and (ii) immediately after giving effect to any such proposed action, no Default or Event of Default shall have occurred and be continuing.

 

7.07    ERISA.  Carpenter
will not, nor will it cause or permit any Subsidiary to, at any time engage in a transaction which could be subject to Section 4069 or 4212(c) of ERISA, or permit any Plan to (a) engage in any non–exempt “prohibited transaction” (as defined in Section 4975 of the Code); (b) fail to comply with ERISA or any other applicable Laws; or (c) fail to satisfy any “minimal funding standard” (as defined in Section 302 of ERISA), which, with respect to each event listed above, could be reasonably
expected to have a Material Adverse Effect.

 

7.08    Change
in Nature of Business.  Carpenter will not, nor will it cause or permit any Subsidiary to, at any time, engage in any material line of business substantially different from those lines of business conducted by Carpenter and its Subsidiaries on the Closing Date.

 

7.09    Transactions
with Affiliates.  Carpenter will not, nor will it cause or permit any of its Subsidiaries to, enter into any transaction of any kind with any Affiliate of Carpenter, other than arm’s–length transactions with Affiliates that are otherwise permitted hereunder, provided that the foregoing restrictions shall not apply to transactions between or among Carpenter and any of its
Wholly–Owned Subsidiaries or between and among any Wholly–Owned Subsidiaries.

 

7.10    Burdensome
Agreements.  Carpenter will not, nor will it cause or permit any of its Subsidiaries to, enter into any Contractual Obligation that limits the ability (a) of any Subsidiary to make Restricted Payments to Carpenter, (b) of any Subsidiary to otherwise transfer property to Carpenter or (c) of Carpenter or any Subsidiary to create, incur, assume or suffer to exist Liens on property of such Person (other than, with respect to clauses (b) and (c), Contractual Obligations entered into in connection
with Permitted Liens).

 

7.11    Use
of Proceeds.  Carpenter will not, nor will it cause or permit any of its Subsidiaries to, use the proceeds of any Credit Extension, whether directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U of the Board) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose.

 

 

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7.12    Financial
Covenants.

 

    (a) Interest
Coverage Ratio.  The Interest Coverage Ratio for any period of four consecutive fiscal quarters of Carpenter, in each case taken as a single accounting period, shall not be less than the ratio set forth below opposite such fiscal quarter:

 

	
Four Fiscal Quarters Ending
	
Minimum Interest Coverage Ratio

	
Closing Date through

September 30, 2010
	
3.00 to 1.00

	 	 
	
December 31, 2010 through

September 30, 2011
	
3.25 to 1.00

	 	 
	
December 31, 2011 and

thereafter
	
3.50 to 1.00

 

    (b) Debt
to Capital Ratio. The Debt to Capital Ratio shall not exceed 55% as of the last day of any fiscal quarter.

 

ARTICLE VIII
EVENTS OF DEFAULT AND REMEDIES

 

   8.01    Events
of Default.  An Event of Default shall exist upon the occurrence of any of the following specified events or conditions (each an “Event of Default”):

 

    (a) Payment.  Any
Borrower shall fail to pay: (i) as and when due and in the currency required hereunder (whether by scheduled maturity, mandatory prepayment, acceleration or otherwise) any amount of principal of any Loan or any L/C Obligation; (ii) within three Business Days of when due (whether by scheduled maturity, mandatory prepayment, acceleration or otherwise) any interest on any Committed Loan or L/C Obligation, or any fee due hereunder; or (iii) within five days after the same become due, any other amount payable hereunder
or under any other Loan Document.

 

    (b) Representation
and Warranties.  Any representation, warranty or statement made or deemed to be made by any Borrower herein, in any of the other Loan Documents or in any statement or certificate delivered or required to be delivered pursuant hereto or thereto shall prove untrue in any material respect on the date as of which it was made or deemed to have been made.

 

 

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    (c) Covenants.  Any
Borrower shall:

 

(i) default in the due performance or observance of any term, covenant or agreement contained in Sections
6.01, 6.02, 6.03 (but solely as it relates to legal existence in its jurisdiction of organization), 6.05 or 6.10,
or in Article VII or Article X; or

 

(ii) default in the due performance or observance by it of any term, covenant or agreement (other than those referred to in Sections
8.01(a), (b) or (c)(i)) contained in this Agreement and such default shall continue unremedied for a period of at least 30 days after the earlier of an executive officer of such Borrower becoming aware of such default or notice thereof given by the Administrative Agent.

 

    (d) Other
Loan Documents.  Any Borrower shall default in the due performance or observance of any term, covenant or agreement in any of the other Loan Documents and such default shall continue unremedied for a period of at least 30 days after the earlier of an executive officer of such Borrower becoming aware of such default or notice thereof given by the Administrative Agent.

 

    (e) Bankruptcy,
etc.  A Bankruptcy Event shall occur with respect to Carpenter or any of its Subsidiaries.

 

    (f) Cross-Default.  Carpenter
or any Subsidiary (i) fails to make payment when due (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), in respect of any Indebtedness or Guarantee (other than in respect of Indebtedness outstanding under the Loan Documents) having an aggregate principal amount (including undrawn committed or available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement) of more than $20,000,000, (ii) fails to perform or observe any other
condition or covenant, or any other event shall occur or condition shall exist, under any agreement or instrument relating to any such Indebtedness or Guarantee, if the effect of such failure, event or condition is to cause or permit such Indebtedness to be declared to be due and payable prior to its stated maturity, or such Guarantee to become payable, or cash collateral in respect thereof to be demanded or (iii) shall be required by the terms of such Indebtedness or Guarantee to offer to prepay or repurchase
such Indebtedness or the primary Indebtedness underlying such Guarantee (or any portion thereof) prior to the stated maturity thereof.

 

    (g) Judgments.  One
or more judgments, orders, decrees or arbitration awards is entered against Carpenter or any Subsidiary involving in the aggregate a liability (to the extent not covered by independent third–party insurance as to which the insurer does not dispute coverage), as to any single or related series of transactions, incidents or conditions, of $20,000,000 or more, and the same shall remain undischarged, unvacated and unstayed pending appeal for a period of 30 days after the entry thereof, or Carpenter or any Subsidiary
shall enter into any agreement to settle or compromise any pending or threatened litigation, as to any single or related series of claims, involving payment by Carpenter or such Subsidiary of $20,000,000 or more, or any non–monetary judgment, order or decree is entered against Carpenter or such Subsidiary which has or would reasonably be expected to have a Material Adverse Effect, and there shall be any period of 30 consecutive days during which a stay of enforcement of such judgment or order, by reason
of a pending appeal or otherwise, shall not be in effect.

 

 

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    (h) ERISA.  (i)
An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in liability of Carpenter under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of $20,000,000, (ii) Carpenter or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer
Plan in an aggregate amount in excess of $20,000,000, (iii) institution of any steps by a Foreign Obligor or any other Person to terminate a Foreign Benefit Plan if as a result of such termination, a Foreign Obligor or any of its respective Subsidiaries is or could reasonably be expected to be required to make a contribution to such Foreign Benefit Plan or has incurred or could reasonably be expected to incur a liability or obligation to such Foreign Benefit Plan, in excess of $20,000,000 or (iv) a contribution
failure with respect to any Foreign Benefit Plan sufficient to give rise to a Lien under applicable Law occurs which has or could reasonably be expected to have a Material Adverse Effect.

 

    (i) Invalidity
of Loan Documents.  Any Loan Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect, or is declared by a court of competent jurisdiction to be null and void, invalid or unenforceable in any respect; any Borrower denies that it has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any Loan
Document; or any provision of Article X of this Agreement shall for any reason cease to be valid and binding on or enforceable against Carpenter or Carpenter shall so state in writing.

 

    (j) Ownership.  There
shall occur a Change of Control.

 

   8.02    Remedies
Upon Event of Default.  If any Event of Default occurs and is continuing, the Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders, take any or all of the following actions:

 

(a) declare the commitment of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions to be terminated, whereupon such commitments
and obligation shall be terminated;

 

(b) declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under
any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrowers;

 

(c) require that Carpenter Cash Collateralize the L/C Obligations (in an amount equal to the then Outstanding Amount thereof); and

 

    (d) exercise on behalf of itself, the Lenders
and the L/C Issuer all rights and remedies available to it, the Lenders and the L/C Issuer under the Loan Documents;

 

provided, however, that upon the occurrence of an
actual or deemed entry of an order for relief with respect to any Borrower under the Bankruptcy Code of the United States, the obligation of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions shall automatically terminate, the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically become due and payable, and the obligation of Carpenter to Cash Collateralize the L/C Obligations as aforesaid shall automatically
become effective, in each case without further act of the Administrative Agent or any Lender.

 

 

85

 

 

   8.03    Application
of Funds.  After the exercise of remedies provided for in Section 8.02 (or after the Loans have automatically become immediately due and payable and the L/C Obligations have automatically been required to be Cash Collateralized as set forth in the proviso to Section 8.02),
any amounts received on account of the Obligations shall be applied by the Administrative Agent in the following order:

 

First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including fees, charges and disbursements of counsel
to the Administrative Agent and amounts payable under Article III) payable to the Administrative Agent in its capacity as such;

 

Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal, interest and Letter of Credit Fees)
payable to the Lenders and the L/C Issuer (including  fees, charges and disbursements of counsel to the respective Lenders and the L/C Issuer and amounts payable under Article III), ratably among them in proportion to the respective amounts described in this clause Second payable
to them;

 

Third, to payment of that portion of the Obligations constituting accrued and unpaid Letter of Credit Fees and interest on the Loans, L/C Borrowings and other Obligations,
ratably among the Lenders and the L/C Issuer in proportion to the respective amounts described in this clause Third payable to them;

 

Fourth, to payment of that portion of the Obligations constituting unpaid principal of the Loans and L/C Borrowings, ratably among the Lenders and the L/C Issuer
in proportion to the respective amounts described in this clause Fourth held by them;

 

Fifth, to the Administrative Agent for the account of the L/C Issuer, to Cash Collateralize that portion of L/C Obligations comprised of the aggregate undrawn amount
of Letters of Credit; and

 

Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to Carpenter or as otherwise required by Law.

 

Subject to Section 2.04(c), amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to clause Fifth above
shall be applied to satisfy drawings under such Letters of Credit as they occur.  If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order set forth above.

 

 

86

 

 

ARTICLE IX
ADMINISTRATIVE AGENT

 

   9.01    Appointment
and Authority.

 

Each of the Lenders and the L/C Issuer hereby irrevocably appoints Bank of America to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the
terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  The provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and the L/C Issuer, and Borrower shall have rights as a third party beneficiary of any of such provisions.

 

   9.02    Rights
as a Lender.  The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity.  Such Person and its
Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrowers or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

 

   9.03    Exculpatory
Provisions.  The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents.  Without limiting the generality of the foregoing, the Administrative Agent:

 

    (a) shall not be subject to any fiduciary
or other implied duties, regardless of whether a Default has occurred and is continuing;

 

    (b) shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), provided that the
Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable Law; and

 

    (c) shall not, except as expressly set forth
herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to any of the Borrowers or any of their respective Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

 

    The Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or
such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 11.01 and 8.02) or (ii) in the absence of its own gross negligence or willful misconduct.  The
Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent by Carpenter, a Lender or the L/C Issuer.

 

 

87

 

 

    The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made
in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document
or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

 

   9.04    Reliance
by Administrative Agent.

 

The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to
have been signed, sent or otherwise authenticated by the proper Person.  The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the L/C Issuer, the Administrative
Agent may presume that such condition is satisfactory to such Lender or the L/C Issuer unless the Administrative Agent shall have received notice to the contrary from such Lender or the L/C Issuer prior to the making of such Loan or the issuance of such Letter of Credit.  The Administrative Agent may consult with legal counsel (who may be counsel for Carpenter), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with
the advice of any such counsel, accountants or experts.

 

   9.05    Delegation
of Duties.  The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub agents appointed by the Administrative Agent.  The Administrative Agent and any such sub agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties.  The exculpatory provisions of this Article shall apply to any such sub agent
and to the Related Parties of the Administrative Agent and any such sub agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent.

 

 

88

 

 

   9.06    Resignation
of Administrative Agent.  The Administrative Agent may at any time give notice of its resignation to the Lenders, the L/C Issuer and Carpenter.  Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with Carpenter, to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States.  If no such successor shall have been so appointed by the
Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may on behalf of the Lenders and the L/C Issuer, appoint a successor Administrative Agent meeting the qualifications set forth above; provided that if the Administrative Agent shall notify Carpenter and the Lenders that
no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective in accordance with such notice and (1) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents and (2) all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and the L/C Issuer directly, until such time as the Required Lenders appoint
a successor Administrative Agent as provided for above in this Section.  Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided
above in this Section).  The fees payable by Carpenter to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between Carpenter and such successor.  After the retiring Administrative Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Article and Section 11.04 shall continue in effect
for the benefit of such retiring Administrative Agent, its sub agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as Administrative Agent.

 

    Any resignation by Bank of America as Administrative Agent pursuant to this Section shall also constitute its resignation as L/C Issuer and Swing Line
Lender.  Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, (a) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer and Swing Line Lender, (b) the retiring L/C Issuer and Swing Line Lender shall be discharged from all of their respective duties and obligations hereunder or under the other Loan Documents, and (c) the successor L/C Issuer shall issue letters of credit in substitution for
the Letters of Credit, if any, outstanding at the time of such succession or make other arrangements satisfactory to the retiring L/C Issuer to effectively assume the obligations of the retiring L/C Issuer with respect to such Letters of Credit.

 

   9.07    Non-Reliance
on Administrative Agent and Other Lenders.  Each Lender and the L/C Issuer acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Lender and the L/C Issuer also acknowledges that it will, independently and without reliance upon the Administrative
Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

 

   9.08    No
Other Duties, Etc.  Anything herein to the contrary notwithstanding, none of the bookrunners, arrangers, syndications agents, documentation agents or co-agents shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or the L/C Issuer hereunder.

 

 

89

 

 

   9.09    Administrative
Agent May File Proofs of Claim.  In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Borrower, the Administrative Agent (irrespective of whether the principal of any Loan or L/C Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on any Borrower) shall be entitled and empowered, by intervention in such proceeding
or otherwise

 

(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, L/C Obligations and all other Obligations
that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the L/C Issuer and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders, the L/C Issuer and the Administrative Agent under Sections
2.04(i) and (j), 2.10 and 11.04) allowed in such judicial proceeding; and

 

(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

 

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and the L/C Issuer to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly
to the Lenders and the L/C Issuer, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 2.10 and 11.04.

 

    Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender or
the L/C Issuer any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or the L/C Issuer to authorize the Administrative Agent to vote in respect of the claim of any Lender or the L/C Issuer in any such proceeding.

 

ARTICLE X
CONTINUING GUARANTY

 

   10.01    Unconditional
Guarantee.  For valuable consideration, receipt whereof is hereby acknowledged, and to induce each Lender to make Loans and the Issuing Lender to issue Letters of Credit to the Borrowers and to induce the Administrative Agent to act hereunder, Carpenter hereby unconditionally and irrevocably guarantees to each Lender and the Administrative Agent the punctual payment when due, whether at stated maturity, by acceleration or otherwise, of (a) all of (a) the Obligations and (b) the Specified Obligations
(the “Guaranteed Obligations”).  Without limiting the generality of the foregoing, Carpenter’s liability shall extend to all amounts that constitute part of the Guaranteed Obligations and would be owed by any of the Subsidiary Borrowers to the Administrative Agent or any Lender under this Agreement but for the fact that they are unenforceable or not allowable due to the existence
of a bankruptcy, reorganization or similar proceeding involving any Subsidiary Borrower. This is a guaranty of payment and not merely as a guaranty of collection. The Administrative Agent’s books and records showing the amount of the Guaranteed Obligations shall be admissible in evidence in any action or proceeding, and shall be binding upon Carpenter, and conclusive for the purpose of establishing the amount of the Guaranteed Obligations.

 

 

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   10.02    Guarantee
Absolute.  Carpenter guarantees that the Guaranteed Obligations will be paid strictly in accordance with the terms of this Agreement, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of any Lender or any Agent with respect thereto. The obligations of Carpenter under this Article X are
independent of the Guaranteed Obligations, and a separate action or actions may be brought and prosecuted against Carpenter to enforce this Article X, irrespective of whether any action is brought against any other Borrower or whether any other Borrower is joined in any such action or actions. The liability of Carpenter under this guarantee shall be irrevocable, absolute and unconditional irrespective
of, and Carpenter hereby irrevocably waives any defenses it may now or hereafter have in any way relating to, any or all of the following:

 

(a) any lack of validity or enforceability of this Agreement or any other agreement or instrument relating thereto;

 

(b) any change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations, or any other amendment or waiver of
or any consent to departure from this Agreement;

 

(c) any taking, exchange, release or non–perfection of any collateral or any taking, release or amendment or waiver of or consent to departure from any other
guaranty, for all or any of the Guaranteed Obligations;

 

(d) any change, restructuring or termination of the corporate structure or existence of any Borrower; or

 

(e) any other circumstance, (including, without limitation, any statute of limitations to the fullest extent permitted by applicable law) which might otherwise constitute
a defense available to, or a discharge of, Carpenter, the other Borrowers or any other guarantor.

 

(f) This guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed Obligations is rescinded
or must otherwise be returned by any of the Lenders or the Administrative Agent upon the insolvency, bankruptcy or reorganization of any Borrower or otherwise, all as though such payment had not been made.

 

   10.03    Waivers.  Carpenter
hereby expressly waives promptness, diligence, notice of acceptance, presentment, demand for payment, protest, any requirement that any right or power be exhausted or any action be taken against any Borrower or against any other guarantor of all or any portion of the Guaranteed Obligations, and all other notices and demands whatsoever.

 

    (a) Carpenter hereby waives any right to
revoke this guaranty, and acknowledges that this guaranty is continuing in nature and applies to all Guaranteed Obligations, whether existing now or in the future and regardless of whether the Guaranteed Obligations is reduced to zero at any time or from time to time.

 

 

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    (b) Carpenter acknowledges that it will
receive substantial direct and indirect benefits from the financing arrangements contemplated herein and that the waivers set forth in this Article X are knowingly made in contemplation of such benefits.

 

    (c) Carpenter agrees that payments made
by it pursuant to this Article X will be subject to the provisions of Section 3.01 as
if such payments were made by the other Borrowers.

 

   10.04    Subrogation.  Carpenter
will not exercise any rights that it may now or hereafter acquire against any other Borrower or any other insider guarantor that arise from the existence, payment, performance or enforcement of the Guaranteed Obligations under this Agreement, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of the Administrative Agent or any Lender against any such Borrower or any other insider guarantor or
any collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive from any such Borrower or any other insider guarantor, directly or indirectly, in cash or other property or by set–off or in any other manner, payment or security on account of such claim, remedy or right, unless and until all of the Guaranteed Obligations and all other amounts payable under this guaranty shall have been paid in
full in cash and the Commitments shall have expired or terminated. If any amount shall be paid to Carpenter in violation of the preceding sentence at any time prior to the later of the payments in full in cash or immediately available funds of the Guaranteed Obligations and all other amounts payable under this guaranty and the Maturity Date, such amount shall be held in trust for the benefit of the Administrative Agent and the Lenders and shall forthwith be paid to the Administrative Agent to be credited and
applied to the Guaranteed Obligations and all other amounts payable under this guaranty, whether matured or unmatured, in accordance with the terms of this Agreement, or to be held as collateral for any Guaranteed Obligations or other amounts payable under this guaranty thereafter arising.  If (a) Carpenter shall make payment to the Administrative Agent or any other Lender of all or any part of the Guaranteed Obligations and the termination of the Commitments and the expiration or cancellation of all
Letters of Credit shall have occurred, (b) all the Guaranteed Obligations and all other amounts payable under this guaranty shall be paid in full in cash and (c) the Maturity Date shall have occurred, the Administrative Agent and the Lenders will, at Carpenter’s request and expense, execute and deliver to Carpenter appropriate documents, without recourse and without representation or warranty, necessary to evidence the transfer by subrogation to Carpenter of an interest in the Guaranteed Obligations resulting
from such payment by Carpenter. Carpenter acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by this Agreement and that the waiver set forth in this section is knowingly made in contemplation of such benefits.

 

   10.05    Survival.  This
guaranty is a continuing guarantee and shall (a) remain in full force and effect until payment in full (after the Maturity Date) of the Guaranteed Obligations and all other amounts payable under this guaranty and the termination of the Commitments and the expiration or cancellation of all Letters of Credit, (b) be binding upon Carpenter, its successors and assigns, (c) inure to the benefit of and be enforceable by each Lender (including each assignee Lender pursuant to Section
11.06) and the Administrative Agent and its respective successors, transferees, and assigns and (d) shall be reinstated if at any time any payment to a Lender or the Administrative Agent hereunder is required to be restored by such Lender or the Administrative Agent. Without limiting the generality of the foregoing clause (c), each Lender may assign or otherwise transfer its interest in any Loan
or Letter of Credit to any other Person, and such other Person shall thereupon become vested with all the rights in respect thereof granted to such Lender herein or otherwise.

 

 

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   10.06 Subordination.  Carpenter
hereby subordinates the payment of all obligations and indebtedness of any Subsidiary Borrower owing to Carpenter, whether now existing or hereafter arising, including but not limited to any obligation of any Subsidiary Borrower to Carpenter as subrogee of the Lenders or resulting from Carpenter’ performance under this Guaranty, to the indefeasible payment in full in cash of all Guaranteed Obligations.  If the Lenders so request, any such obligation or indebtedness of any Subsidiary Borrower to
Carpenter shall be enforced and performance received by Carpenter as trustee for the Lenders and the proceeds thereof shall be paid over to the Lenders on account of the Guaranteed Obligations, but without reducing or affecting in any manner the liability of Carpenter under this Guaranty.

 

   10.07    Stay
of Acceleration.  If acceleration of the time for payment of any of the Guaranteed Obligations is stayed, in connection with any case commenced by or against Carpenter or any Subsidiary Borrower under any Debtor Relief Laws, or otherwise, all such amounts shall nonetheless be payable by Carpenter immediately upon demand by the Lenders.

 

   10.08 Condition
of Borrower.  Carpenter acknowledges and agrees that it has the sole responsibility for, and has adequate means of, obtaining from any Subsidiary Borrower and any other Subsidiary such information concerning the financial condition, business and operations of any Subsidiary Borrower and any such other Subsidiary as Carpenter requires, and that none of the Lenders has any duty, and Carpenter is not relying on the Lenders at any time, to disclose to Carpenter any information relating to the business,
operations or financial condition of any Subsidiary Borrower or any other Subsidiary (Carpenter waiving any duty on the part of the Lenders to disclose such information and any defense relating to the failure to provide the same).

 

ARTICLE XI
MISCELLANEOUS

 

   11.01    Amendments,
Etc.  No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by Carpenter or any other Borrower therefrom, shall be effective unless in writing signed by the Required Lenders and Carpenter or the applicable Borrower, as the case may be, and acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however,
that no such amendment, waiver or consent shall:

 

(a) waive any condition set forth in Section 4.01(a) or Section
4.01(b) without the written consent of each Lender;

 

(b) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section
8.02) without the written consent of such Lender;

 

(c) postpone any date fixed by this Agreement or any other Loan Document for any payment (excluding mandatory prepayments) of principal, interest, fees or other
amounts due to the Lenders (or any of them) or any scheduled or mandatory reduction of the Aggregate Commitments hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby;

 

 

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(d) reduce the principal of, or the rate of interest specified herein on, any Loan or L/C Borrowing, or (subject to clause (iv) of the second proviso to this Section
11.01) any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; provided, however, that only the consent of the Required Lenders shall be necessary (i) to amend the definition of “Default
Rate” or to waive any obligation of any Borrower to pay interest or Letter of Credit Fees at the Default Rate or (ii) to amend any financial covenant hereunder (or any defined term used therein) even if the effect of such amendment would be to reduce the rate of interest on any Loan or L/C Borrowing or to reduce any fee payable hereunder;

 

(e) change Section 2.14 or Section
8.03 in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each Lender;

 

(f) amend Section 1.06 or the definition of “Alternative
Currency” without the written consent of each Lender;

 

(g) change any provision of this Section or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of
Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder without the written consent of each Lender; or

 

(h) release Carpenter from Carpenter Guaranty without the written consent of each Lender;

 

and, provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed by the L/C
Issuer in addition to the Lenders required above, affect the rights or duties of the L/C Issuer under this Agreement or any Issuer Document relating to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing and signed by the Swing Line Lender in addition to the Lenders required above, affect the rights or duties of the Swing Line Lender under this Agreement; (iii) no amendment, waiver or consent shall, unless in writing and signed by the Administrative
Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document; and (iv) the Fee Letters may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto.  Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be increased
or extended without the consent of such Lender.

 

   11.02    Notices;
Effectiveness; Electronic Communication.

 

    (a) Notices
Generally.  Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable
telephone number, as follows:

 

 

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(i) if to a Borrower, the Administrative Agent, the L/C Issuer or the Swing Line Lender, to the address, telecopier number, electronic mail address or telephone
number specified for such Person on Schedule 11.02; and

 

(ii) if to any other Lender, to the address, telecopier number, electronic mail address or telephone number specified in its Administrative Questionnaire.

 

Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by telecopier shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient,
shall be deemed to have been given at the opening of business on the next business day for the recipient).  Notices and other communications delivered through electronic communications to the extent provided in subsection (b) below, shall be effective as provided in such subsection (b).

 

(b) Electronic Communications.  Notices
and other communications to the Lenders and the L/C Issuer hereunder may be delivered or furnished by electronic communication (including e mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender or the L/C Issuer pursuant to Article
II if such Lender or the L/C Issuer, as applicable, has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication.  The Administrative Agent or Carpenter may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that
approval of such procedures may be limited to particular notices or communications.

 

Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written
acknowledgement), provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended
recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor.

 

 

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(c) The Platform.  THE PLATFORM IS PROVIDED
“AS IS” AND “AS AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS,
IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM.  In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to any Borrower, any Lender, the L/C Issuer or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise)
arising out of any Borrower’s or the Administrative Agent’s transmission of Borrower Materials through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Agent Party; provided, however,
that in no event shall any Agent Party have any liability to any Borrower, any Lender, the L/C Issuer or any other Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct or actual damages).

 

(d) Change of Address, Etc.  Each of the
Borrowers, the Administrative Agent, the L/C Issuer and the Swing Line Lender may change its address, telecopier or telephone number for notices and other communications hereunder by notice to the other parties hereto.  Each other Lender may change its address, telecopier or telephone number for notices and other communications hereunder by notice to Carpenter, the Administrative Agent, the L/C Issuer and the Swing Line Lender.  In addition, each Lender agrees to notify the Administrative
Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, telecopier number and electronic mail address to which notices and other communications may be sent and (ii) accurate wire instructions for such Lender.  Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the “Private Side Information” or similar designation on the content
declaration screen of the Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender’s compliance procedures and applicable Law, including United States Federal and state securities laws, to make reference to Borrower Materials that are not made available through the “Public Side Information” portion of the Platform and that may contain material non-public information with respect to the Borrower or its securities for purposes of United States Federal
or state securities laws.

 

(e) Reliance by Administrative Agent, L/C Issuer and Lenders.  The
Administrative Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon any notices (including telephonic Committed Loan Notices and Swing Line Loan Notices) purportedly given by or on behalf of any Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof.  Carpenter shall
indemnify the Administrative Agent, the L/C Issuer, each Lender and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of any Borrower.  All telephonic notices to and other telephonic communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording.

 

 

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    11.03    No Waiver; Cumulative Remedies; Enforcement.  No
failure by any Lender or the Administrative Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by law.

 

Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Borrowers or any of them shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be
instituted and maintained exclusively by, the Administrative Agent in accordance with Section 8.02 for the benefit of all the Lenders and the L/C Issuer; provided, however, that the foregoing shall not prohibit (a) the Administrative Agent from exercising on its own behalf the rights and remedies that inure to its benefit
(solely in its capacity as Administrative Agent) hereunder and under the other Loan Documents, (b) the L/C Issuer or the Swing Line Lender from exercising the rights and remedies that inure to its benefit (solely in its capacity as L/C Issuer or Swing Line Lender, as the case may be) hereunder and under the other Loan Documents, (c) any Lender from exercising setoff rights in accordance with Section 11.08 (subject to the terms of Section
2.14), or (d) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to any Borrower under any Debtor Relief Law; and provided, further, that if at any time there is no Person acting as Administrative Agent hereunder and under the other Loan Documents, then (i) the Required Lenders shall have the
rights otherwise ascribed to the Administrative Agent pursuant to Section 8.02 and (ii) in addition to the matters set forth in clauses (b), (c) and (d) of the preceding proviso and subject to Section 2.14, any Lender may, with the consent of the Required Lenders, enforce any rights and remedies available to it and as authorized by the Required Lenders.

 

11.04    Expenses; Indemnity; Damage Waiver.

 

(a) Costs and Expenses.  Carpenter shall pay (i) all reasonable out of pocket expenses incurred by the Administrative Agent
and its Affiliates (including the reasonable fees, charges and disbursements of counsel for the Administrative Agent), in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out of pocket
expenses incurred by the L/C Issuer in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all out of pocket expenses incurred by the Administrative Agent, any Lender or the L/C Issuer (including the fees, charges and disbursements of any counsel for the Administrative Agent, any Lender or the L/C Issuer), in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents,
including its rights under this Section, or (B) in connection with the Loans made or Letters of Credit issued hereunder, including all such out of pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

 

 

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(b) Indemnification by Carpenter.  Carpenter shall indemnify the Administrative Agent (and any sub-agent thereof), each
Lender and the L/C Issuer, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any third party or by any Borrower arising
out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder, the consummation of the transactions contemplated hereby or thereby, or, in the case of the Administrative Agent (and any sub-agent thereof) and its Related Parties only, the administration of this Agreement and the other Loan Documents
(including in respect of any matters addressed in Section 3.01), (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the L/C Issuer to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from
any property owned or operated by any Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to any Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by Carpenter or any other Borrower, and regardless of whether any Indemnitee is a party thereto; provided that
such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by Carpenter or any other Borrower against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document,
if Carpenter or such other Borrower has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction.

 

(c) Reimbursement by Lenders.  To the extent that Carpenter for any reason fails to indefeasibly pay any amount required
under subsection (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub-agent thereof), the L/C Issuer or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the L/C Issuer or such Related Party, as the case may be, such Lender’s Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount, provided that
the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) or the L/C Issuer in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) or L/C Issuer in connection with such capacity.  The obligations of the Lenders under this subsection (c) are subject to the provisions of Section
2.13(d).

 

 

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(d) Waiver of Consequential Damages, Etc.  To the fullest extent permitted by applicable law, no party hereto shall assert,
and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof.  No Indemnitee referred to in subsection (b) above shall be liable
for any damages arising from the use by unintended recipients of any information or other materials distributed to such unintended recipients by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby other than for direct or actual damages resulting from the gross negligence or willful misconduct of such Indemnitee as determined by a final and nonappealable
judgment of a court of competent jurisdiction.

 

(e) Payments.  All amounts due under this Section shall be payable not later than ten Business Days after demand therefor.

 

(f) Survival.  The agreements in this Section shall survive the resignation of the Administrative Agent, the
L/C Issuer and the Swing Line Lender, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations.

 

11.05    Payments Set Aside.  To the extent that any payment by or on behalf of any Borrower is made to the Administrative Agent, the L/C Issuer
or any Lender, or the Administrative Agent, the L/C Issuer or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent, the L/C Issuer or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or
otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender and the L/C Issuer severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such demand to
the date such payment is made at a rate per annum equal to the applicable Overnight Rate from time to time in effect, in the applicable currency of such recovery or payment.  The obligations of the Lenders and the L/C Issuer under clause (b) of the preceding sentence shall survive the payment in full of the Obligations and the termination of this Agreement.

 

11.06    Successors and Assigns.

 

(a) Successors and Assigns Generally.  The provisions of this Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns permitted hereby, except that no Borrower may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection
(d) of this Section or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the
extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the L/C Issuer and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

 

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(b) Assignments by Lenders.  Any Lender may at any time assign to one or more assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its Commitment and the Loans (including for purposes of this subsection (b), participations in L/C Obligations and in Swing Line Loans) at the time owing to it); provided that any such assignment shall be subject to the following conditions:

 

(i) Minimum Amounts.

 

    (A) in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the Loans
at the time owing to it or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

 

    (B) in any case not described in subsection (b)(i)(A) of this Section, the aggregate amount of the Commitment (which for
this purpose includes Loans outstanding thereunder) or, if the Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment, determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $5,000,000 unless each of the Administrative Agent and, so long
as no Event of Default has occurred and is continuing, Carpenter otherwise consents (each such consent not to be unreasonably withheld or delayed); provided, however, that concurrent assignments to members of an Assignee Group and concurrent assignments from members of an Assignee Group to a single Eligible Assignee (or to an Eligible Assignee and members of its Assignee Group) will
be treated as a single assignment for purposes of determining whether such minimum amount has been met.

 

    (ii) Proportionate Amounts.  Each partial assignment
shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loans or the Commitment assigned, except that this clause (ii) shall not apply to the rights in respect of Bid Loans or the Swing Line Lender’s rights and obligations in respect of Swing Line Loans;

 

    (iii) Required Consents.  No consent shall be
required for any assignment except to the extent required by subsection (b)(i)(B) of this Section and, in addition:

 

    (A) the consent of Carpenter (such consent not to be unreasonably withheld or delayed) shall be required unless (1) an
Event of Default has occurred and is continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund;

 

100

 

    (B) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required
if such assignment is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender;

 

    (iv) Assignment and Assumption.  The parties
to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee in the amount of $3,500; provided, however, that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment.  The assignee, if it is not a Lender, shall
deliver to the Administrative Agent an Administrative Questionnaire.

 

    (v) No Assignment to Company.  No such assignment
shall be made to Carpenter or any of Carpenter’s Affiliates or Subsidiaries.

 

    (vi) No Assignment to Natural Persons.  No
such assignment shall be made to a natural person.

 

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption,
have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections
3.01, 3.04, 3.05, and 11.04 with respect to facts and circumstances occurring prior to the effective date of such assignment.  Upon request, each Borrower (at its expense) shall execute and deliver a Note to the assignee Lender.  Any assignment or transfer by a Lender of rights or obligations
under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of this Section.

    (c) Register.  The Administrative Agent, acting
solely for this purpose as an agent of the Borrowers, shall maintain at the Administrative Agent’s Office a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts of the Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in
the Register shall be conclusive, and the Borrowers, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection by the Borrowers and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

 

 

101

 

 

    (d) Participations.  Any Lender may at any time, without
the consent of, or notice to, any Borrower or the Administrative Agent, sell participations to any Person (other than a natural person or Carpenter or any of Carpenter’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans (including such Lender’s participations in L/C Obligations
and/or Swing Line Loans) owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrowers, the Administrative Agent, the Lenders and the L/C Issuer shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations
under this Agreement.

 

    Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any  provision of this Agreement; provided that
such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 11.01 that affects such Participant.  Subject to subsection (e) of this Section, each Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 to
the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of this Section.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.08 as though it were a Lender, provided such Participant agrees to be subject to Section
2.14 as though it were a Lender.

 

    (e) Limitations upon Participant Rights.  A Participant
shall not be entitled to receive any greater payment under Section 3.01 or 3.04 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with Carpenter’s prior written consent.  A Participant that would be a Foreign Lender if it were a Lender
shall not be entitled to the benefits of Section 3.01 unless Carpenter is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrowers, to comply with Section 3.01(e) as though it were a Lender.

 

    (f) Certain Pledges.  Any Lender may at any time
pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note(s), if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

 

 

102

 

 

   11.07    Treatment of Certain Information; Confidentiality.  Each
of the Administrative Agent, the Lenders and the L/C Issuer agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers, employees, agents, trustees, advisors and representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential),
(b) to the extent requested by any regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document
or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or any Eligible Assignee invited to be a Lender pursuant to Section 2.17(c) or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to a Borrower and its obligations,
(g) with the consent of Carpenter or (h) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to the Administrative Agent, any Lender, the L/C Issuer or any of their respective Affiliates on a nonconfidential basis from a source other than Carpenter.

 

    For purposes of this Section, “Information” means all information received from Carpenter or any Subsidiary relating to Carpenter or any Subsidiary or any of their respective businesses,
other than any such information that is available to the Administrative Agent, any Lender or the L/C Issuer on a nonconfidential basis prior to disclosure by Carpenter or any Subsidiary, provided that, in the case of information received from Carpenter or any Subsidiary after the date hereof, such information is clearly identified at the time of delivery as confidential.  Any Person required to maintain the confidentiality of Information
as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

 

    Each of the Administrative Agent, the Lenders and the L/C Issuer acknowledges that (a) the Information may include material non-public information concerning Carpenter or a Subsidiary, as the case may be, (b) it has developed compliance procedures regarding
the use of material non-public information and (c) it will handle such material non-public information in accordance with applicable Law, including United States Federal and state securities laws.

 

   11.08    Right of Setoff.  If an Event of Default shall
have occurred and be continuing, each Lender, the L/C Issuer and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, the L/C Issuer or any such Affiliate to or for the credit or the account of any Borrower
against any and all of the obligations of such Borrower now or hereafter existing under this Agreement or any other Loan Document to such Lender or the L/C Issuer, irrespective of whether or not such Lender or the L/C Issuer shall have made any demand under this Agreement or any other Loan Document and although such obligations of such Borrower may be contingent or unmatured or are owed to a branch or office of such Lender or the L/C Issuer different from the branch or office holding such deposit or obligated
on such indebtedness.  The rights of each Lender, the L/C Issuer and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, the L/C Issuer or their respective Affiliates may have.  Each Lender and the L/C Issuer agrees to notify Carpenter and the Administrative Agent promptly after any such setoff and application, provided that the failure
to give such notice shall not affect the validity of such setoff and application.

 

 

103

 

 

   11.09    Interest Rate Limitation.  Notwithstanding anything to the contrary
contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded
to Carpenter.  In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated
term of the Obligations hereunder.

 

   11.10    Counterparts; Integration; Effectiveness.  This
Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided
in Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a signature page of this Agreement by telecopy or other electronic imaging means shall be effective as delivery of a manually
executed counterpart of this Agreement.

 

   11.11    Survival of Representations and Warranties.  All
representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been or will be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any Lender
may have had notice or knowledge of any Default at the time of any Credit Extension, and shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding.

 

   11.12    Severability.  If any provision of this Agreement
or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The
invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

 

104

 

 

   11.13    Replacement of Lenders.  If (i) any Lender requests compensation
under Section 3.04, (ii) any Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, (iii) the obligation of any Lender to make Eurocurrency Loans has been suspended pursuant to Section 3.02 (iii) a Lender (a “Non-Consenting
Lender”) does not consent to a proposed change, waiver, discharge or termination with respect to any Loan Document that has been approved by the Required Lenders as provided in Section 11.01 but requires unanimous consent of all Lenders or all Lenders directly affected thereby (as applicable) or (iv) any Lender is a Defaulting Lender, then Carpenter may, at its sole expense and effort, upon notice to such Lender and the Administrative
Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 11.06), all of its interests, rights and obligations under this Agreement and the related Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that:

 

    (a) Carpenter shall have paid (or caused a Subsidiary Borrower to pay) to the Administrative Agent the assignment fee specified
in Section 11.06(b);

 

    (b) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and L/C Advances,
accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 3.05) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or Carpenter or applicable Subsidiary Borrower (in the case of all other amounts);

 

    (c) in the case of any such assignment resulting from a claim for compensation under Section
3.04 or payments required to be made pursuant to Section 3.01, such assignment will result in a reduction in such compensation or payments thereafter; and

 

    (d) such assignment does not conflict with applicable Laws.

 

    (e) in the case of any such assignment resulting from a Non-Consenting Lender’s failure to consent to a proposed change,
waiver, discharge or termination with respect to any Loan Document, the applicable replacement bank, financial institution or Fund consents to the proposed change, waiver, discharge or termination; provided that the failure by such Non-Consenting Lender to execute and deliver an Assignment and Assumption shall not impair the validity of the removal of such Non-Consenting Lender and the mandatory assignment of such Non-Consenting Lender’s Commitments
and outstanding Loans and participations in L/C Obligations and Swing Line Loans pursuant to this Section 11.13 shall nevertheless be effective without the execution by such Non-Consenting Lender of an Assignment and Assumption

 

 

105

 

 

    A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling Carpenter to require such assignment and delegation cease to apply.

 

   11.14    Governing Law; Jurisdiction; Etc.

 

    (a) GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

    (b) SUBMISSION TO JURISDICTION.  EACH BORROWER
IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT
ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE
ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

    (c) WAIVER OF VENUE.  EACH BORROWER IRREVOCABLY
AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY
SUCH COURT.

 

    (d) SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY
CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

 

 

106

 

 

   11.15    Waiver of Jury Trial.  EACH PARTY HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

   11.16    No Advisory or Fiduciary Responsibility.  In
connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), each Borrower acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (i) (A) the arranging and other services regarding this Agreement provided by the Administrative Agent and the Arrangers are arm’s-length commercial transactions between such Borrower and its Affiliates, on the one hand, and the
Administrative Agent and the Arrangers, on the other hand, (B) such Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) such Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) the Administrative Agent and each Arranger each is and has been acting solely as a principal and, except as expressly agreed in writing
by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for such Borrower or any of its Affiliates, or any other Person and (B) neither the Administrative Agent nor any Arranger  has any obligation to such Borrower or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Administrative Agent and the Arrangers and their respective Affiliates
may be engaged in a broad range of transactions that involve interests that differ from those of such Borrower and its Affiliates, and neither the Administrative Agent nor any Arranger has any obligation to disclose any of such interests to the Borrower or its Affiliates.  To the fullest extent permitted by law, each of the Borrowers hereby waives and releases any claims that it may have against the Administrative Agent and the Arrangers with respect to any breach or alleged breach of agency or fiduciary
duty in connection with any aspect of any transaction contemplated hereby.

 

   11.17    Electronic Execution of Assignments and Certain Other Documents.   The
words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption or in any amendment or other modification hereof (including waivers and consents) shall be deemed to include electronic signatures 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 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, or any other similar state laws based on the Uniform Electronic Transactions Act.

 

 

107

 

 

   11.18    USA PATRIOT Act.  Each Lender that is subject
to the Patriot Act (as hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrowers that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is required to obtain, verify and record information that identifies the Borrowers, which information includes the name and address of each Borrower
and other information that will allow such Lender or the Administrative Agent, as applicable, to identify such Borrower in accordance with the Patriot Act.  Each Borrower shall, promptly following a request by the Administrative Agent or any Lender, provide all documentation and other information that the Administrative Agent or such Lender requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including
the Patriot Act.

 

   11.19    Judgment Currency.  If, for
the purposes of obtaining judgment in any court, it is necessary to convert a sum due hereunder or any other Loan Document in one currency into another currency, the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent could purchase the first currency with such other currency on the Business Day preceding that on which final judgment is given.  The obligation of each Borrower in respect of any such sum due from it to the Administrative Agent
or any Lender hereunder or under the other Loan Documents shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than that in which such sum is denominated in accordance with the applicable provisions of this Agreement (the “Agreement Currency”), be discharged only to the extent that on the Business Day following receipt by the Administrative
Agent or such Lender, as the case may be, of any sum adjudged to be so due in the Judgment Currency, the Administrative Agent or such Lender, as the case may be, may in accordance with normal banking procedures purchase the Agreement Currency with the Judgment Currency.  If the amount of the Agreement Currency so purchased is less than the sum originally due to the Administrative Agent or any Lender from any Borrower in the Agreement Currency, such Borrower agrees, as a separate obligation and notwithstanding
any such judgment, to indemnify the Administrative Agent or such Lender, as the case may be, against such loss.  If the amount of the Agreement Currency so purchased is greater than the sum originally due to the Administrative Agent or any Lender in such currency, the Administrative Agent or such Lender, as the case may be, agrees to return the amount of any excess to such Borrower (or to any other Person who may be entitled thereto under applicable law).

 

 

108

 

 

    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.

 

	 	CARPENTER TECHNOLOGY CORPORATION	 
	 	 	 	 
	
 
	By: 	
 
	/s/ Michael A. Hajost	 
	 	Name: 	Michael A. Hajost	 
	 	Title: 	 	Vice President and Treasurer	 

 

 

 

 

 

Carpenter Technology Corporation

Credit Agreement

 

 

 

 

	       	
BANK OF AMERICA, N.A.,

as Administrative Agent
	 
	 	 	 	 
	
 
	By: 	
 
	/s/ Roberto Salazar	 
	 	Name: 	Roberto Salazar	 
	 	Title: 	 	Assistant Vice President	 

 

 

 

 

 

Carpenter Technology Corporation

Credit Agreement

 

 

 

 

	       	
BANK OF AMERICA, N.A.,
as a Lender, L/C Issuer and Swing Line Lender
	 
	 	 	 	 
	
 
	By: 	
 
	/s/ Mary K. Giermek	 
	 	Name: 	Mary K. Giermek	 
	 	Title: 	 	Senior Vice President	 

 

 

 

 

 

Carpenter Technology Corporation

Credit Agreement

 

 

 

 

	       	
JPMORGAN CHASE BANK, NA,
as a Lender
	 
	 	 	 	 
	
 
	By: 	
 
	/s/ Deborah R. Winkler	 
	 	Name: 	Deborah R. Winkler	 
	 	Title: 	 	Vice President	 

 

 

 

 

 

Carpenter Technology Corporation

Credit Agreement

 

 

 

 

 

	       	
BANK OF TOKYO-MITSUBISHI

UFJ TRUST COMPANY,

as a Lender
	 
	 	 	 	 
	
 
	By: 	
 
	/s/ Ravneet Mumick	 
	 	Name: 	Ravneet Mumick	 
	 	Title: 	 	Vice President	 

 

 

 

 

 

Carpenter Technology Corporation

Credit Agreement

 

 

 

 

 

	       	
PNC BANK, NATIONAL ASSOCIATION,

as a Lender
	 
	 	 	 	 
	
 
	By: 	
 
	/s/ Susan J. Dimmick	 
	 	Name: 	Susan J. Dimmick	 
	 	Title: 	 	Senior Vice President	 

 

 

 

 

 

Carpenter Technology Corporation

Credit Agreement

 

 

 

 

 

	       	
KEYBANK NATIONAL ASSOCIATION,

as a Lender
	 
	 	 	 	 
	
 
	By: 	
 
	/s/ Suzannah Harris	 
	 	Name: 	Suzannah Harris	 
	 	Title: 	 	Vice President	 

 

 

 

 

 

Carpenter Technology Corporation

Credit Agreement

 

 

 

 

 

	       	
SOVEREIGN BANK,

as a Lender
	 
	 	 	 	 
	
 
	By: 	
 
	/s/ Steven M. Weidman	 
	 	Name: 	Steven M. Weidman	 
	 	Title: 	 	Senior Vice President	 

 

 

 

 

 

Carpenter Technology Corporation

Credit Agreement

 

 

 

 

 

	       	
THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND,

as a Lender
	 
	 	 	 	 
	
 
	By: 	
 
	/s/ Wendy Hobson	 
	 	Name: 	Wendy Hobson	 
	 	Title: 	 	Authorised Signatory	 

 

 

	       	
THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND,

as a Lender
	 
	 	 	 	 
	
 
	By: 	
 
	/s/ Elaine Crowley	 
	 	Name: 	Elaine Crowley	 
	 	Title: 	 	Authorised Signatory	 

 

 

 

 

Carpenter Technology Corporation

Credit Agreement

 

 

 

 

 

	       	
MANUFACTURERS AND TRADERS TRUST COMPANY,

as a Lender
	 
	 	 	 	 
	
 
	By: 	
 
	/s/ Brian J. Sohocki	 
	 	Name: 	Brian J. Sohocki	 
	 	Title: 	 	Vice President	 

 

 

 

 

 

Carpenter Technology Corporation

Credit Agreement

 

 

 

 

 

	       	
US BANK NATIONAL ASSOCIATION,

as a Lender
	 
	 	 	 	 
	
 
	By: 	
 
	/s/ Patrick McGraw	 
	 	Name: 	Patrick McGraw	 
	 	Title: 	 	Vice President	 

 

 

 

 

 

Carpenter Technology Corporation

Credit Agreement

 

 

 

SCHEDULE 1.01

 

MANDATORY COST FORMULAE

 

	
1.
	
The Mandatory Cost (to the extent applicable) is an addition to the interest rate to compensate Lenders for the cost of compliance with:

 

	
 
	(a) 	
the requirements of the Bank of England and/or the Financial Services Authority (or, in either case, any other authority which replaces all or any of its functions); or

 

	 	
(b)
	
the requirements of the European Central Bank.

 

	
2.
	
On the first day of each Interest Period (or as soon as possible thereafter) the Administrative Agent shall calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for each Lender, in accordance with the paragraphs set out below.  The Mandatory Cost will be calculated by the Administrative Agent as a weighted average of the Lenders’ Additional Cost Rates (weighted in proportion
to the percentage participation of each Lender in the relevant Loan) and will be expressed as a percentage rate per annum.  The Administrative Agent will, at the request of Carpenter or any Lender, deliver to Carpenter or such Lender as the case may be, a statement setting forth the calculation of any Mandatory Cost.

 

	
3.
	
The Additional Cost Rate for any Lender lending from a Lending Office in a Participating Member State will be the percentage notified by that Lender to the Administrative Agent.  This percentage will be certified by such Lender in its notice to the Administrative Agent to be its reasonable determination of the cost (expressed as a percentage of such Lender’s participation in all Loans made from such
Lending Office) of complying with the minimum reserve requirements of the European Central Bank in respect of Loans made from that Lending Office.

 

	
4.
	
The Additional Cost Rate for any Lender lending from a Lending Office in the United Kingdom will be calculated by the Administrative Agent as follows:

 

	 	(a)	in relation to any Loan in Sterling: 

 

	
AB + C(B-D) + E x 0.01 per cent per annum

	
100 - (A+C)

 

	 	(b)	in relation to any Loan in any currency other than Sterling: 

 

	
E x 0.01 per cent per annum

	
300

 

 

 

 

 

Where:

 

	
“A”
	
is the percentage of Eligible Liabilities (assuming these to be in excess of any stated minimum) which that Lender is from time to time required to maintain as an interest free cash ratio deposit with the Bank of England to comply with cash ratio requirements.

 

	
“B”
	
is the percentage rate of interest (excluding the Applicable Rate, the Mandatory Cost and any interest charged on overdue amounts pursuant to the first sentence of Section 2.08(b) and, in the case of interest (other than on overdue amounts) charged at the Default Rate, without counting any increase in interest rate effected by the charging of the Default Rate) payable for the relevant Interest Period of such Loan.

 

	
“C”
	
is the percentage (if any) of Eligible Liabilities which that Lender is required from time to time to maintain as interest bearing Special Deposits with the Bank of England.

 

	
“D”
	
is the percentage rate per annum payable by the Bank of England to the Administrative Agent on interest bearing Special Deposits.

 

	
“E”
	
is designed to compensate Lenders for amounts payable under the Fees Rules and is calculated by the Administrative Agent as being the average of the most recent rates of charge supplied by the Lenders to the Administrative Agent pursuant to paragraph 7 below and expressed in pounds per £1,000,000.

 

	
5.
	
For the purposes of this Schedule:

 

	 	
(a)
	
“Eligible Liabilities” and “Special Deposits” have the meanings given to them from time to time under or pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank of England;

	 	 	 
	 	
(b)
	
“Fees Rules” means the rules on periodic fees contained in the FSA Supervision Manual or such other law or regulation as may be in force from time to time in respect of the payment of fees for the acceptance of deposits;

	 	 	 
	 	
(c)
	
“Fee Tariffs” means the fee tariffs specified in the Fees Rules under the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required pursuant to the Fees Rules but taking into account any applicable discount rate); and

	 	 	 
	 	
(d)
	
“Tariff Base” has the meaning given to it in, and will be calculated in accordance with, the Fees Rules.

 

	
6.
	
In application of the above formulae, A, B, C and D will be included in the formulae as percentages (i.e. 5% will be included in the formula as 5 and not as 0.05).  A negative result obtained by subtracting D from B shall be taken as zero.  The resulting figures shall be rounded to four decimal places.

 

 

 

 

 

	
7.
	
If requested by the Administrative Agent or Carpenter, each Lender with a Lending Office in the United Kingdom or a Participating Member State shall, as soon as practicable after publication by the Financial Services Authority, supply to the Administrative Agent and Carpenter, the rate of charge payable by such Lender to the Financial Services Authority pursuant to the Fees Rules in respect of the relevant financial
year of the Financial Services Authority (calculated for this purpose by such Lender as being the average of the Fee Tariffs applicable to such Lender for that financial year) and expressed in pounds per £1,000,000 of the Tariff Base of such Lender.

 

	
8.
	
Each Lender shall supply any information required by the Administrative Agent for the purpose of calculating its Additional Cost Rate.  In particular, but without limitation, each Lender shall supply the following information in writing on or prior to the date on which it becomes a Lender:

 

	 	
(a)
	
the jurisdiction of the Lending Office out of which it is making available its participation in the relevant Loan; and

	 	 	 
	 	
(b)
	
any other information that the Administrative Agent may reasonably require for such purpose.

 

Each Lender shall promptly notify the Administrative Agent in writing of any change to the information provided by it pursuant to this paragraph.

 

	
9.
	
The percentages of each Lender for the purpose of A and C above and the rates of charge of each Lender for the purpose of E above shall be determined by the Administrative Agent based upon the information supplied to it pursuant to paragraphs 7 and 8 above and on the assumption that, unless a Lender notifies the Administrative Agent to the contrary, each Lender’s obligations in relation to cash ratio deposits
and Special Deposits are the same as those of a typical bank from its jurisdiction of incorporation with a lending office in the same jurisdiction as its Lending Office.

 

	
10.
	
The Administrative Agent shall have no liability to any Person if such determination results in an Additional Cost Rate which over- or under-compensates any Lender and shall be entitled to assume that the information provided by any Lender pursuant to paragraphs 3, 7 and 8 above is true and correct in all respects.

 

	
11.
	
The Administrative Agent shall distribute the additional amounts received as a result of the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each Lender based on the information provided by each Lender pursuant to paragraphs 3, 7 and 8 above.

 

	
12.
	
Any determination by the Administrative Agent pursuant to this Schedule in relation to a formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the absence of manifest error, be conclusive and binding on all parties hereto.

 

	
13.
	
The Administrative Agent may from time to time, after consultation with Carpenter and the Lenders, determine and notify to all parties any amendments which are required to be made to this Schedule in order to comply with any change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any other authority
which replaces all or any of its functions) and any such determination shall, in the absence of manifest error, be conclusive and binding on all parties hereto.

 

 

 

 

SCHEDULE 2.01

 

COMMITMENTS

AND APPLICABLE PERCENTAGES

 

	
Lender
	
Commitment
	
Applicable

Percentage

	
Bank of America, N.A.

 
	
$30,000,000
	
15.000000000%

	
JPMorgan Chase Bank, NA

 
	
$30,000,000
	
15.000000000%

	
Bank of Tokyo-Mitsubishi UFJ Trust Company

 
	
$25,000,000
	
12.500000000%

	
PNC Bank, National Association

 
	
$25,000,000
	
12.500000000%

	
KeyBank National Association

 
	
$22,000,000
	
11.000000000%

	
Sovereign Bank

 
	
$17,000,000
	
8.500000000%

	
The Governor and Company of the Bank of Ireland

 
	
$17,000,000
	
8.500000000%

	
Manufacturers and Traders Trust Company

 
	
$17,000,000
	
8.500000000%

	
US Bank National Association

 
	
$17,000,000
	
8.500000000%

	
Total
	
$200,000,000
	
100.000000000%

 

 

 

 

 

 

SCHEDULE 5.13

 

SUBSIDIARIES

 

The true and correct U.S. taxpayer identification number of Carpenter is 23-0458500.

 

Attached hereto as Exhibit “A” is a list of all of Carpenter’s Subsidiaries in existence as of the date hereof and all of the other information required to be listed in this Schedule
5.13 pursuant to Section 5.13.

 

 

 

 

 

Exhibit “A”

 

Aceros Fortuna, S.A. de C.V.

 

	
Incorporation:
	
  
	
Mexico

	  	  
	
Entity Type:

Federal ID #:
	
  
	
Corporation

AFO8311086M2

 

	
Primary Address:
	
  
	
Registered Address:

	
Av. Lic. Juan Fernandez Albarran No. 31
	
  
	
Av. Lic. Juan Fernandez Albarran No. 31

	
Frac. Ind. San Pablo Xalpa
	
  
	
Frac. Ind. San Pablo Xalpa

	
54090 Tlalnepantla, Edo. de
	
  
	
54090 Tlalnepantla, Edo. de

 

	
STOCKS:
	
  
	  	
  
	  	
  
	  
	  
	
Minimum Fixed Capital Stock - New Pesos

	
Price/Par Value:
	
  
	
1,000 Pesos
	
  
	
Date Authorized:
	
  
	
Friday, February 07, 1997

	
CUSIP:
	
  
	  	
  
	
Authorized:
	
  
	
150

	
SYMBOL:
	
  
	  	
  
	
Outstanding:
	
  
	
150

	  	
  
	  	
  
	
Issued:
	
  
	
150

	  	
  
	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
Grapo Carpenter

Technology, S.A. de C.V.
Consideration:
	
  
	
1
	
  
	
100
	
  
	
150
	
  
	
Friday, February 07, 1997

 

	
Variable Capital Stock - New Pesos

	
Price/Par Value:
	
  
	
1,000 Pesos
	
  
	
Date Authorized:
	
  
	
Friday, February 07, 1997

	
CUSIP:
	
  
	  	
  
	
Authorized:
	
  
	
9,100

	
SYMBOL:
	
  
	  	
  
	
Outstanding:
	
  
	
9,100

	  	
  
	  	
  
	
Issued:
	
  
	
9,100

	  	
  
	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
Grupo Carpenter
	
  
	
2
	
  
	
99.99
	
  
	
9,099
	
  
	
Friday, February 07, 1997

	
Technology, S.A. de C.V.
	
  
	  	
  
	  	
  
	  	
  
	
 

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	
Temple y Forja Fortuna,
	
  
	
3
	
  
	
.01
	
  
	
1
	
  
	
Friday, February 07, 1997

	
S.A. de C.V.
	
  
	  	
  
	  	
  
	  	
  
	
 

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

 

 

 

 

	
DIRECT SUBSIDIARIES:
	
  
	  	
  
	  	
  
	  
	 	 	 	 	 	 	 
	  	
  
	
Incorp/Formed in
	
  
	
%Ownership
	
  
	
Shares

	 	 	 	 	 	 	 
	
Carpenter Servicios, S.A. de C.V.
	 	
Mexico
	 	 	 	1
	 	 	 	 	 	 	 
	
Temple y Foija Fortuna, S.A. de C.V.
	 	
Mexico
	 	
96
	
%
	
24

 

 

 

 

 

Carpenter Investments, Inc.

 

	
Incorporation:
	
  
	
Delaware

	  	  
	
Entity Type:

Federal ID #:
	
  
	
Corporation

51-0321769

 

	
Primary Address:
	
  
	
Registered Address:

	
1105 N. Market Street
	
  
	
1105 N. Market Street

	
Wilmington, DE 19801
	
  
	
Wilmington, DE  19801

 

	
STOCKS:
	  	  	
  
	  	
  
	  
	  	  	  	  
	
Common Stock
	  	  	
  
	  	
  
	  
	
Price/Par Value:
	  	
$5 per share
	
  
	
Date Authorized:
	
  
	
Wednesday, December 06, 1989

	
CUSIP:
	  	  	
  
	
Authorized:
	
  
	
1,000

	
SYMBOL:
	  	  	
  
	
Outstanding:
	
  
	
1,000

	  	  	  	
  
	
Issued:
	
  
	
1,000

	  	  	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
CARPENTER TECHNOLOGY CORPORATION Consideration:
	
  
	
1
	
  
	
100
	
  
	
1,000
	
  
	
Wednesday, December 06, 1989

 

	
DIRECT SUBSIDIARIES:
	 	 	 	 	 	 
	  	  	  	  	  	  	  
	  	
  
	
Incorp/Formed in
	
  
	
%Ownership
	  	
Shares

	 	 	 	 	 	 	 
	
Carpenter Technology (Canada) Limited
	
  
	
Canada
	
  
	
100
	
%
	
100

	
Carpenter Technology (Europe) S.A.
	
  
	
Belgium
	
  
	
1
	
%
	
1

	
Carpenter Technology (France) SA
	
  
	
France
	
  
	
1
	
%
	
1

	
Carpenter Technology (Taiwan) Corporation
	 	
Taiwan
	 	1	%	1
	Carpenter Technology (UK) Limited	 	
United Kingdom
	 	1	%	1
	Grupo Carpenter Technology, S.A. de C.V.	 	Mexico	 	1	%	1
	Temple y Forja Fortuna, S.A. de C.V.	 	Mexico	 	4	%	1

 

 

 

 

 

Carpenter Powder Products AB

 

	
Incorporation:
	
  
	
Sweden

	  	  
	
Entity Type:
	
  
	
Corporation

 

	
Primary Address:
	
  
	
Registered Address:

	
Anval Nyby Powder AB
	
  
	
Anval Nyby Powder AB

	
Box 45
	
  
	
Box 45

	
S-644 21
	
  
	
S-644 21

	
Torshalla Sweden
	
  
	
Torshalla Sweden

 

	
STOCKS:
	  	  	
  
	  	
  
	  
	  	  	  	  
	
Capital Shares
	  	  	
  
	  	
  
	  
	
Price/Par Value:
	  	
SEK 100
	
  
	
Date Authorized:
	
  
	
Tuesday, February 01, 2000

	
CUSIP:
	  	  	
  
	
Authorized:
	
  
	
250,000

	
SYMBOL:
	  	  	
  
	
Outstanding:
	
  
	
250,000

	  	  	  	
  
	
Issued:
	
  
	
250,000

	  	  	  	
  
	
# in Treasury:
	
  
	  

 

	
DIRECT SUBSIDIARIES:
	 	 	 	 	 	 
	  	  	  	  	  	  	  
	  	
  
	
Incorp/Formed in
	
  
	
%Ownership
	  	
Shares

	 	 	 	 	 	 	 
	
Carpenter Powder Products GmbH
	
  
	
Germany
	
  
	
100
	
%
	
200,000

 

 

 

 

 

Carpenter Powder Products GmbH

 

	
Incorporation:
	
  
	
Germany

	  	  
	
Entity Type:
	
  
	
Corporation

 

	
Primary Address:
	
  
	
Registered Address:

	
Anval Nyby Powder GmbH
	
  
	  
	
Dusselthaler Str. 9-D-40211
	
  
	  
	
Dusseldorf Germany
	
  
	  

 

	  	  	  	  	  
	
STOCKS:
	
  
	  	
  
	  
	  	  	  
	
Capital Shares
	
  
	  	
  
	  
	
Price/Par Value:
	
  
	
Date Authorized:
	
  
	
Monday, April 15, 1991

	
CUSIP:
	
  
	
Authorized:
	
  
	
200,000

	
SYMBOL:
	
  
	
Outstanding:
	
  
	
200,000

	  	
  
	
Issued:
	
  
	
200,000

	  	
  
	
# in Treasury:
	
  
	  

 

DIRECT SUBSIDIARIES:

 

 

 

 

 

Carpenter Powder Products Inc.

 

	
Incorporation:
	
  
	
Delaware

	  	  
	
Entity Type:
	
  
	
Corporation

	
Federal ID #:
	
  
	
25-1883092

 

	
Primary Address:
	
  
	
Registered Address:

	
Carpenter Powder Products Inc.
	
  
	
1209 Orange Street

	
600 Mayer Street
	
  
	
Wilmington, DE 19810 U.S.A.

	
Bridgeville, PA 15017 U.S.A.
	
  
	  

 

	
STOCKS:
	  	  	
  
	  	
  
	  
	  	  	  	  
	
Common Stock
	  	  	
  
	  	
  
	  
	
Price/Par Value:
	  	
$5
	
  
	
Date Authorized:
	
  
	
Friday, March 09, 2001

	
CUSIP:
	  	  	
  
	
Authorized:
	
  
	
1,000

	
SYMBOL:
	  	  	
  
	
Outstanding:
	
  
	
1,000

	  	  	  	
  
	
Issued:
	
  
	
1,000

	  	  	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
CRS Holdings Inc.
	
  
	
1
	
  
	
100
	
  
	
1,000
	
  
	
Friday, March 09, 2001

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

DIRECT SUBSIDIARIES:

 

 

 

 

 

Carpenter Servicios, S.A. de C.V.

 

	
Incorporation:
	
  
	
Mexico

	  	  
	
Entity Type:
	
  
	
Corporation

 

	
Primary Address:
	
  
	
Registered Address:

	
Av. Lic. Jua Fernadez Albarran No. 31
	
  
	
Av. Lic. Juan Fernadez Albarran No. 31

	
Frac. Ind. San Pablo Xalpa
	
  
	
Frac. Ind. San Pablo Xalpa

	
54090 Tlalnepantla, Edo. de
	
  
	
54090 Tlalnepantla, Edo. de

 

	
STOCKS:
	  	  	
  
	  	
  
	  
	  	  
	
Minimum Fixed Capital - Series A
	
  
	  
	
Price/Par Value:
	  	
1,000 Pesos
	
  
	
Date Authorized:
	
  
	
Friday, February 07, 1997

	
CUSIP:
	  	  	
  
	
Authorized:
	
  
	
50

	
SYMBOL:
	  	  	
  
	
Outstanding:
	
  
	
50

	  	  	  	
  
	
Issued:
	
  
	
50

	  	  	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
Grupo Carpenter Technology, S.A. de C.V.
	
  
	
1
	
  
	
98
	
  
	
49
	
  
	
Friday, February 07, 1997

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	
Aceros Fortuna, S.A. de C.V.
	
  
	
2
	
  
	
2
	
  
	
1
	
  
	
Friday, February 07, 1997

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

DIRECT SUBSIDIARIES:

 

 

 

 

 

Carpenter Technology (Canada) Limited

 

	
Incorporation:
	
  
	
Canada

 

	
Primary Address:
	
  
	
Registered Address:

	
Scotia Plaza, 40 King Street West, Toronto, Ontario Canada
	
  
	
Scotia Plaza, 40 King Street West, Toronto, Ontario, Canada

	
Mississauqa, Ontario L5S 1K4
	
  
	
Mississauqa, Ontario L5S 1K4

 

DIRECT SUBSIDIARIES:

 

 

 

 

Carpenter Technology (Deutschland) GmbH

 

	
Incorporation:
	
  
	
Germany

	  	  
	
Entity Type:
	
  
	
Corporation

 

	
Primary Address:
	
  
	
Registered Address:

	
Waldenbucher Strasse 22
	
  
	
Waldenbucher Strasse 22

	
71065 Sindelfingen, Germany
	
  
	
71065 Sindelfingen, Germany

 

	
STOCKS:
	
  
	  	
  
	  
	  	  	  
	
Notarial Deed
	
  
	  	
  
	  
	
Price/Par Value:
	
  
	
Date Authorized:
	
  
	  
	
CUSIP:
	
  
	
Authorized:
	
  
	  
	
SYMBOL:
	
  
	
Outstanding:
	
  
	  
	  	
  
	
Issued:
	
  
	  
	  	
  
	
# in Treasury:
	
  
	  

 

DIRECT SUBSIDIARIES:

 

 

 

 

Carpenter Technology (Europe) S.A.

 

	
Incorporation:
	
  
	
Belgium

	  	  
	
Entity Type:
	
  
	
Corporation

 

	
Primary Address:
	
  
	
Registered Address:

	
Chaussee de Haecht 1465
	
  
	
Chaussee de Haecht 1465

	
1130 Brussels
	
  
	
1130 Brussels

	
Belguim
	
  
	
Belguim

 

	
STOCKS:
	  	  	
  
	  	
  
	  
	  	  	  	  
	
Capital
	  	  	
  
	  	
  
	  
	
Price/Par Value:
	  	
62 Euro
	
  
	
Date Authorized:
	
  
	
Tuesday, July 03, 1990

	
CUSIP:
	  	  	
  
	
Authorized:
	
  
	
1,000

	
SYMBOL:
	  	  	
  
	
Outstanding:
	
  
	
1,000

	  	  	  	
  
	
Issued:
	
  
	
1,000

	  	  	  	
  
	
# in Treasury:
	
  
	  

 

	  	  	  	  	  	  	  	  	  
	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
CRS Holdings Inc.
	
  
	
No Cert.
	
  
	
99.9
	
  
	
999
	
  
	
Thursday, July 12, 1990

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	
Carpenter Investments, Inc.
	
  
	
None
	
  
	
.1
	
  
	
1
	
  
	
Thursday, July 12, 1990

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

DIRECT SUBSIDIARIES:

 

 

 

 

 

Carpenter Technology (France) SA

 

	
Incorporation:
	
  
	
France

	  	  
	
Entity Type:
	
  
	
Corporation

 

	
Primary Address:
	
  
	
Registered Address:

	
76 Avenue des Champs Elysees
	
  
	
76 Avenue des Champs Elysees

	
75008 Paris
	
  
	
75008 Paris

	
France
	
  
	
France

 

	
STOCKS:
	
  
	  	
  
	  	
  
	  
	  	  	  	  
	
Capital
	
  
	  	
  
	  	
  
	  
	
Price/Par Value:
	
  
	
100 FRF/share
	
  
	
Date Authorized:
	
  
	
Monday, March 15, 1993

	
CUSIP:
	
  
	  	
  
	
Authorized:
	
  
	
500

	
SYMBOL:
	
  
	  	
  
	
Outstanding:
	
  
	
500

	  	
  
	  	
  
	
Issued:
	
  
	
500

	  	
  
	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
CRS Holdings Inc.
	
  
	
NONE
	
  
	
99.8
	
  
	
499
	
  
	
Monday, March 15, 1993

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	
Carpenter Investments, Inc.
	
  
	
Book-entry
	
  
	
.2
	
  
	
1
	
  
	
Monday, March 15, 1993

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

DIRECT SUBSIDIARIES:

 

 

 

 

Carpenter Technology (Taiwan) Corporation

 

	
Incorporation:
	
  
	
Taiwan

	  	  
	
Entity Type:
	
  
	
Corporation

 

	
Primary Address:
	
  
	
Registered Address:

	
Far Glory Business Center
	
  
	
17th Floor, No. 167 Tun Hua North Road

	
17th Floor, No. 167 Tun Hua North Road
	
  
	
Taipei 105, Taiwan, R.O.C. 886-2-2717-1999 ext.

	
Taipei 105, Taiwan, R.O.C. 886-2-2717-1999 ext.
	
  
	  

 

	
Former Name (s):
	
  
	  	
  
	  	
  
	  
	
Carpenter Technology Corporation
	
  
	  	
  
	  
	
(Taiwan) Ltd.
	
  
	  	
  
	  	
  
	  
	  	  	  	  
	
STOCKS:
	
  
	  	
  
	  	
  
	  
	  	  	  	  
	
Capital Stock
	
  
	  	
  
	  	
  
	  
	
Price/Par Value:
	
  
	
$10 New Taiwan
	
  
	
Date Authorized:
	
  
	
Monday, November 22, 1993

	
CUSIP:
	
  
	  	
  
	
Authorized:
	
  
	
2,000,000

	
SYMBOL:
	
  
	  	
  
	
Outstanding:
	
  
	
500,000

	  	
  
	  	
  
	
Issued:
	
  
	
500,000

	  	
  
	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
CRS Holdings Inc.
	
  
	
1
	
  
	
100
	
  
	
499,994
	
  
	
Monday, November 22, 1993

	 	 	 	 	 	 	 	 	 
	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	
CARPENTER TECHNOLOGY CORPORATION
	
  
	
2
	
  
	  	
  
	
1
	
  
	
Monday, November 22, 1993

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	
Eagle (CRS) Investments, Inc.
	
  
	
3
	
  
	  	
  
	
1
	
  
	
Monday, November 22, 1993

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	
Carpenter Investments, Inc.
	
  
	
4
	
  
	  	
  
	
1
	
  
	
Monday, November 22, 1993

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	
Cardy, Robert W.
	
  
	
5
	
  
	  	
  
	
1
	
  
	
Monday, November 22, 1993

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	
Cottrell, G. Walton
	
  
	
7
	
  
	  	
  
	
1
	
  
	
Monday, November 22, 1993

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	
Fiore, Nicholas F.
	
  
	
6
	
  
	  	
  
	
1
	
  
	
Monday, November 22, 1993

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	McElwee, Andrew	 	6	 	 	 	1	 	Sunday, March 26, 2000
	Consideration:	 	 	 	 	 	 	 	 

 

DIRECT SUBSIDIARIES:

 

 

 

 

Carpenter Technology (UK) Limited

 

	
Incorporation:
	
  
	
United Kingdom

	  	  
	
Entity Type:
	
  
	
Corporation

 

	
Primary Address:
	
  
	
Registered Address:

	
Unit 6
	
  
	
100 New Bridge Street

	
The I.O. Centre
	
  
	
London EC4V6JA England

	
Old Forge Drive
	
  
	  
	
Redditch, Worcester B987AN England
	
  
	  

 

	
STOCKS:
	  	  	
  
	  	
  
	  
	  	  	  	  
	
Ordinary Shares
	  	  	
  
	  	
  
	  
	
Price/Par Value:
	  	
1 pound/share
	
  
	
Date Authorized:
	
  
	
Thursday, June 30, 1983

	
CUSIP:
	  	  	
  
	
Authorized:
	
  
	
100

	
SYMBOL:
	  	  	
  
	
Outstanding:
	
  
	
100

	  	  	  	
  
	
Issued:
	
  
	
100

	  	  	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
CRS Holdings Inc.
	
  
	
4
	
  
	
99
	
  
	
99
	
  
	
Thursday, October 01, 1992

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	
Carpenter Investments, Inc.
	
  
	
5
	
  
	
1
	
  
	
1
	
  
	
Thursday, October 01, 1992

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

DIRECT SUBSIDIARIES:

 

 

 

 

Carpenter Technology Asia Pacific Pte. Ltd.

 

	
Incorporation:
	
  
	
Singapore

	  	  
	
Entity Type:
	
  
	
Corporation

 

	
Primary Address:
	
  
	
Registered Address:

	
Carpenter Technology Asia Pte. Ltd.
	
  
	
Carpenter Technology Asia Pacific Pte. Ltd.

	
1 Grange Road #05-02
	
  
	
1 Robinson Road

	
Orchard Building
	
  
	
#18-00 AIA Tower

	
Singapore 239693 Singapore
	
  
	
Singapore 048542 Singapore

 

	
STOCKS:
	  	  	
  
	  	
  
	  
	  	  	  	  
	
Ordinary Shares
	  	  	
  
	  	
  
	  
	
Price/Par Value:
	  	
$1.00
	
  
	
Date Authorized:
	
  
	  
	
CUSIP:
	  	  	
  
	
Authorized:
	
  
	
100,000

	
SYMBOL:
	  	  	
  
	
Outstanding:
	
  
	
15,000

	  	  	  	
  
	
Issued:
	
  
	
15,000

	  	  	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
Carpenter Technology Mauritius Ltd.
	
  
	
5
	
  
	
100
	
  
	
15,000
	
  
	
Tuesday, March 30, 1999

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

DIRECT SUBSIDIARIES:

 

 

 

 

Carpenter Technology Mauritius Ltd.

 

	
Incorporation:
	
  
	
Mauritius

	  	  
	
Entity Type:
	
  
	
Corporation

 

	
Primary Address:
	
  
	
Registered Address:

	
Anglo Mauritius House, 2nd Floor
	
  
	
Anglo Mauritius House, 2nd Floor

	
4 Intendance Street
	
  
	
4 Intendance Street

	
Port Louis Mauritius
	
  
	
Port Louis Mauritius

 

	
STOCKS:
	
  
	  	
  
	  	
  
	  
	  	  	  	  
	
Capital Stock
	
  
	  	
  
	  	
  
	  
	
Price/Par Value:
	
  
	
1.00 US
	
  
	
Date Authorized:
	
  
	
Friday, October 23, 1998

	
CUSIP:
	
  
	  	
  
	
Authorized:
	
  
	
10,000

	
SYMBOL:
	
  
	  	
  
	
Outstanding:
	
  
	
10,000

	  	
  
	  	
  
	
Issued:
	
  
	
10,000

	  	
  
	  	
  
	
# in Treasury:
	
  
	  

 

DIRECT SUBSIDIARIES:

 

	  	
  
	
Incorp/Formed in
	
  
	
%Ownership
	  	
Shares

	 	 	 	 	 	 	 
	
Carpenter Technology Asia Pacific Pte. Ltd.
	
  
	
Singapore
	
  
	
100
	
%
	
15,000

	
Kalyani Carpenter Metal Centres Pvt. Ltd.
	
  
	
India
	
  
	
51
	
%
	
3,580,822

	
Kalyani Carpenter Special Steels Limited
	
  
	
India
	
  
	
26
	
%
	
7,810,910

 

 

 

 

Cartech Corporation

 

	
Incorporation:
	
  
	
Delaware

	  	  
	
Entity Type:
	
  
	
Corporation

	
Federal ID #:
	
  
	
23-2320711

 

	
Primary Address:
	
  
	
Registered Address:

	
P.O. Box 14662
	
  
	
101 West Bern Street

	
Reading, PA 19612-4662
	
  
	
Reading, PA 19601

 

	
STOCKS:
	
  
	  	
  
	  	
  
	  
	  	  	  	  
	
Capital Stock
	
  
	  	
  
	  	
  
	  
	
Price/Par Value:
	
  
	
$1 per share
	
  
	
Date Authorized:
	
  
	
Thursday, October 03, 1968

	
CUSIP:
	
  
	  	
  
	
Authorized:
	
  
	
1,000

	
SYMBOL:
	
  
	  	
  
	
Outstanding:
	
  
	
1,000

	  	
  
	  	
  
	
Issued:
	
  
	
1,000

	  	
  
	  	
  
	
# in Treasury:
	
  
	  

 

DIRECT SUBSIDIARIES:

 

 

 

 

CRS Funding Corp.

 

	
Incorporation:
	
  
	
Delaware

	  	  
	
Entity Type:
	
  
	
Corporation

	
Federal ID #:
	
  
	
23-3093276

 

	
Primary Address:
	
  
	
Registered Address:

	
Carpenter Technology Corporation
	
  
	
1209 Orange Street

	
101 West Bern Street
	
  
	
Wilmington, DE 19801 USA

	
Reading, PA 19601 USA
	
  
	  

 

DIRECT SUBSIDIARIES:

 

 

 

 

CRS Holdings Inc.

 

	
Incorporation:
	
  
	
Delaware

	  	  
	
Entity Type:
	
  
	
Corporation

	
Federal ID #:
	
  
	
51-0341103

 

	
Primary Address:
	
  
	
Registered Address:

	
1105 N. Market St.
	
  
	
1105 N. Market St.

	
Wilmington, DE 19801
	
  
	
Wilmington, DE 19801

 

	
STOCKS:
	  	  	
  
	  	
  
	  
	  	  	  	  
	
Capital Stock
	  	  	
  
	  	
  
	  
	
Price/Par Value:
	  	
$5
	
  
	
Date Authorized:
	
  
	
Thursday, June 04, 1992

	
CUSIP:
	  	  	
  
	
Authorized:
	
  
	
3,000

	
SYMBOL:
	  	  	
  
	
Outstanding:
	
  
	
1,000

	  	  	  	
  
	
Issued:
	
  
	
1,000

	  	  	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
CARPENTER TECHNOLOGY CORPORATION
	
  
	
1
	
  
	
100
	
  
	
1,000
	
  
	
Thursday, June 04, 1992

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

DIRECT SUBSIDIARIES:

 

	  	
  
	
Incorp/Formed in
	
  
	
%Ownership
	  	
Shares

	 	 	 	 	 	 	 
	
Carpenter Powder Products Inc.
	
  
	
Delaware
	
  
	
100
	
%
	
1,000

	
Carpenter Technology (Deutschland) GmbH
	
  
	
Germany
	
  
	
100
	
%
	
150,000

	
Carpenter Technology (Europe) S.A.
	
  
	
Belgium
	
  
	
99
	
%
	
999

	
Carpenter Technology (France) SA
	
  
	
France
	
  
	
99
	
%
	
499

	
Carpenter Technology (Taiwan) Corporation
	
  
	
Taiwan
	
  
	
94
	
%
	
499,994

	
Carpenter Technology (UK) Limited
	
  
	
United Kingdom
	
  
	
99
	
%
	
99

	
Carpenter Technology Mauritius Ltd.
	
  
	
Mauritius
	
  
	
100
	
%
	
10,000

	
Grupo Carpenter Technology, S.A. de C.V.
	
  
	
Mexico
	
  
	
99
	
%
	
142,901

 

 

 

 

Dynamet Holdings, Inc.

 

	
Incorporation:
	
  
	
Delaware

	  	  
	
Entity Type:
	
  
	
Corporation

	
Federal ID #:
	
  
	
52-2064140

 

	
Primary Address:
	
  
	
Registered Address:

	
1105 N. Market St.
	
  
	
1105 N. Market St.

	
Wilmington, DE 19801
	
  
	
Wilmington, DE 19801

 

	
STOCKS:
	  	  	
  
	  	
  
	  
	  	  	  	  
	
Common Stock
	  	  	
  
	  	
  
	  
	
Price/Par Value:
	  	
$5
	
  
	
Date Authorized:
	
  
	
Thursday, November 06, 1997

	
CUSIP:
	  	  	
  
	
Authorized:
	
  
	
3,000

	
SYMBOL:
	  	  	
  
	
Outstanding:
	
  
	
1,000

	  	  	  	
  
	
Issued:
	
  
	
1,000

	  	  	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
Dynamet Incorporated
	
  
	
1
	
  
	
100
	
  
	
1,000
	
  
	
Thursday, November 06, 1997

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

DIRECT SUBSIDIARIES:

 

	  	
  
	
Incorp/Formed in
	
  
	
%Ownership
	  	
Shares

	 	 	 	 	 	 	 
	
Carpenter Powder Products AB
	
  
	
Sweden
	
  
	
100
	
%
	
250,000

 

 

 

 

Dynamet Incorporated

 

	
Incorporation:
	
  
	
Delaware

	  	  
	
Entity Type:
	
  
	
Corporation

	
Federal ID #:
	
  
	
23-2882270

 

	
Primary Address:
	
  
	
Registered Address:

	
195 Museum Road
	
  
	
195 Museum Road

	
Washington, PA 15301
	
  
	
Washington, PA 15301

 

Former Name (s):

 

DY Acquisition Corporation

 

	
STOCKS:
	  	  	
  
	  	
  
	  
	  	  	  	  
	
Common Stock
	  	  	
  
	  	
  
	  
	
Price/Par Value:
	  	
$1
	
  
	
Date Authorized:
	
  
	
Friday, February 21, 1997

	
CUSIP:
	  	  	
  
	
Authorized:
	
  
	
100

	
SYMBOL:
	  	  	
  
	
Outstanding:
	
  
	
100

	  	  	  	
  
	
Issued:
	
  
	
100

	  	  	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
CARPENTER TECHNOLOGY CORPORATION
	
  
	
1
	
  
	
100
	
  
	
100
	
  
	
Friday, February 21, 1997

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

DIRECT SUBSIDIARIES:

 

	  	
  
	
Incorp/Formed in
	
  
	
%Ownership
	  	
Shares

	 	 	 	 	 	 	 
	
Dynamet Holdings, Inc.
	
  
	
Delaware
	
  
	
100
	
%
	
1,000

 

 

 

 

 

Grupo Carpenter Technology, S.A. de C.V.

 

	
Incorporation:
	
  
	
Mexico

	  	  
	
Entity Type:

Federal ID #:
	
  
	
Corporation

GCT9511143R6

 

	
Primary Address:
	
  
	
Registered Address:

	
Av. Lic. Juan Fernandez Albarran No. 31
	
  
	
Av. Lic. Juan Fernandez Albarran No. 31

	
Frac. Ind. San Pablo Xalpa
	
  
	
Frac. Ind. San Pablo Xalpa

	
54090 Tlalnepantla, Edo. de
	
  
	
Tlalnepantla 54090 Edo. de Mexico

 

	
STOCKS:
	
  
	  	
  
	  	
  
	  
	  	  	  
	
Minimum Fixed Capital Stock - Series A
	
  
	  	
  
	  
	
Price/Par Value:
	
  
	
1,000 Pesos
	
  
	
Date Authorized:
	
  
	
Friday, February 07, 1997

	
CUSIP:
	
  
	  	
  
	
Authorized:
	
  
	
50

	
SYMBOL:
	
  
	  	
  
	
Outstanding:
	
  
	
50

	  	
  
	  	
  
	
Issued:
	
  
	
50

	  	
  
	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
CRS Holdings Inc.
	
  
	
1
	
  
	
98
	
  
	
49
	
  
	
Wednesday, May 31, 2000

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	
Carpenter Investments, Inc.
	
  
	
2
	
  
	
2
	
  
	
1
	
  
	
Wednesday, May 31, 2000

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

	
Variable Capital Stock - Series B
	
  
	  	
  
	  
	
Price/Par Value:
	
  
	
1,000 Pesos
	
  
	
Date Authorized:
	
  
	
Wednesday, May 31, 2000

	
CUSIP:
	
  
	  	
  
	
Authorized:
	
  
	
146,212

	
SYMBOL:
	
  
	  	
  
	
Outstanding:
	
  
	
146,212

	  	
  
	  	
  
	
Issued:
	
  
	
146,212

	  	
  
	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
CRS Holdings Inc.
	
  
	
3
	
  
	
100
	
  
	
146,212
	
  
	
Wednesday, May 31, 2000

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

 

 

 

 

DIRECT SUBSIDIARIES:

 

	  	
  
	
Incorp/Formed in
	
  
	
%Ownership
	  	
Shares

	 	 	 	 	 	 	 
	
Aceros Fortuna, S.A. de C.V.
	
  
	  	
  
	
99.99
	
%
	
9,099

	
Aceros Fortuna, S.A. de C.V.
	
  
	
Mexico
	
  
	
100
	
%
	
150

	 	 	 	 	 	 	 
	Grupo Carpenter Technology, S.A. de C.V.	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
Carpenter Servicios, S.A. de C.V.
	 	
Mexico
	 	
99
	
%
	
49

 

 

 

 

International Metals Outlet, LLC

 

	
Entity Type:
	
  
	
Limited Liability Company

	  	  
	
Federal ID #:
	
  
	
23-3026014

 

	
Primary Address:
	
  
	
Registered Address:

	
RR1 Box 1363F
	
  
	
RR1 Box 1363F

	
Orwigsburg, PA 17961 USA
	
  
	
Orwigsburg, PA 17961 USA

 

	
REGULATIONS:
	
  
	  
	
Date of Original Regulations:
	
  
	
Tuesday, December 21, 1999

	
Date of Last Amendment:
	
  
	  
	
Termination Date:
	
  
	  

 

DIRECT SUBSIDIARIES:

 

 

 

 

Kalyani Carpenter Metal Centres Pvt. Ltd.

 

	
Incorporation:
	
  
	
India

	  	  
	
Entity Type:
	
  
	
Corporation

 

	
Primary Address:
	
  
	
Registered Address:

	
72-76 Mundhwa
	
  
	  
	
Pune 411-036 India
	
  
	  

 

	
STOCKS:
	
  
	  	
  
	  	
  
	  
	  	  	  	  
	
Rupees
	
  
	  	
  
	  	
  
	  
	
Price/Par Value:
	
  
	
Rs. 10/-
	
  
	
Date Authorized:
	
  
	
Friday, August 27, 1999

	
CUSIP:
	
  
	  	
  
	
Authorized:
	
  
	
8,000,000

	
SYMBOL:
	
  
	  	
  
	
Outstanding:
	
  
	
7,021,219

	  	
  
	  	
  
	
Issued:
	
  
	
7,021,219

	  	
  
	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
Carpenter Technology Mauritius Ltd.
	
  
	
18
	
  
	
14.64
	
  
	
1,027,650
	
  
	
Friday, December 01, 2000

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	
Carpenter Technology Mauritius Ltd.
	
  
	
10
	
  
	
14.53
	
  
	
1,020,000
	
  
	
Monday, January 31, 2000

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	
Carpenter Technology Mauritius Ltd.
	
  
	
14
	
  
	
10.9
	
  
	
765,000
	
  
	
Tuesday, May 23, 2000

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	
Carpenter Technology Mauritius Ltd.
	
  
	
19
	
  
	
7.31
	
  
	
513,172
	
  
	
Wednesday, August 29, 2001

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	
Carpenter Technology Mauritius Ltd.
	
  
	
6
	
  
	
3.63
	
  
	
255,000
	
  
	
Friday, May 28, 1999

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

DIRECT SUBSIDIARIES:

 

 

 

 

Kalyani Carpenter Special Steels Limited

 

	
Incorporation:
	
  
	
India

	  	  
	
Entity Type:
	
  
	
Corporation

 

	
Primary Address:
	
  
	
Registered Address:

	
72-76 Mundhwa
	
  
	  
	
Pune 411-036 India
	
  
	  

 

	
STOCKS:
	
  
	  	
  
	  	
  
	  
	  	  	  	  
	
Rupees
	
  
	  	
  
	  	
  
	  
	
Price/Par Value:
	
  
	
Rs. 10
	
  
	
Date Authorized:
	
  
	
Monday, August 02, 1999

	
CUSIP:
	
  
	  	
  
	
Authorized:
	
  
	
40,000,000

	
SYMBOL:
	
  
	  	
  
	
Outstanding:
	
  
	
30,041,962

	  	
  
	  	
  
	
Issued:
	
  
	
30,041,962

	  	
  
	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
Carpenter Technology Mauritius Ltd.
	
  
	
6
	
  
	
26
	
  
	
7,810,910
	
  
	
Friday, May 28, 1999

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

DIRECT SUBSIDIARIES:

 

 

 

 

 

Shalmet Corporation

 

	
Incorporation:
	
  
	
Delaware

	  	  
	
Entity Type:

Federal ID #:
	
  
	
Corporation

23-2930171

 

	
Primary Address:
	
  
	
Registered Address:

	
Shalmet Corporation
	
  
	
CT Corporation System

	
1486A Pinedale Corporation
	
  
	
Corporation Trust Center

	
Deer Lake Industrial Park
	
  
	
1209 Orange Street

	
Orwigsburg, PA 17961 U.S.A.
	
  
	
Wilmington, DE 19801

 

	
STOCKS:
	  	  	
  
	  	
  
	  
	  	  	  	  
	
Common Stock
	  	  	
  
	  	
  
	  
	
Price/Par Value:
	  	  	
  
	
Date Authorized:
	
  
	
Tuesday, October 28, 1997

	
CUSIP:
	  	  	
  
	
Authorized:
	
  
	
1,000

	
SYMBOL:
	  	  	
  
	
Outstanding:
	
  
	
100

	  	  	  	
  
	
Issued:
	
  
	
100

	  	  	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
Carpenter Technology Corporation
	
  
	
2
	
  
	
100
	
  
	
100
	
  
	
Monday, October 27, 1997

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

DIRECT SUBSIDIARIES:

 

	  	  	  	  	  	  	  
	  	
  
	
Incorp/Formed in
	
  
	
%Ownership
	  	
Shares

	 	 	 	 	 	 	 
	
International Metals Outlet, LLC
	
  
	
Pennsylvania
	
  
	
100
	
%
	  

 

 

 

 

 

Talley Industries, Inc.

 

	
Incorporation:
	
  
	
Delaware

	  	  
	
Entity Type:
	
  
	
Corporation

	
Federal ID #:
	
  
	
86-0180396

 

	
Primary Address:
	
  
	
Registered Address:

	
101 West Bern Street
	
  
	
Nevada Corporate Management, Inc.

	
Reading, PA 19601
	
  
	
3993 Howard Hughes Parkway

	  	
  
	
Suite 250

	  	
  
	
Las Vegas, Nevada 89109 USA

 

	
STOCKS:
	  	  	
  
	  	
  
	  
	  	  	  	  
	
Common Stock
	  	  	
  
	  	
  
	  
	
Price/Par Value:
	  	
$1
	
  
	
Date Authorized:
	
  
	
Tuesday, May 11, 1999

	
CUSIP:
	  	  	
  
	
Authorized:
	
  
	
1,000

	
SYMBOL:
	  	  	
  
	
Outstanding:
	
  
	
1,000

	  	  	  	
  
	
Issued:
	
  
	
1,000

	  	  	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
Carpenter Technology Corporation
	
  
	
1
	
  
	
100
	
  
	
1,000
	
  
	
Wednesday, May 12, 1999

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

DIRECT SUBSIDIARIES:

 

	  	
  
	
Incorp/Formed in
	
  
	
%Ownership
	  	
Shares

	 	 	 	 	 	 	 
	
Talley Holdings, Inc.
	
  
	
Delaware
	
  
	
100
	
%
	
1,000

	
Talley Metals Technology, Inc.
	
  
	
Delaware
	
  
	
100
	
%
	
5,000

	
Talley Realty Holding Company, Incorporated
	
  
	
Delaware
	
  
	
100
	
%
	
100

 

 

 

 

 

Talley Metals Technology, Inc.

 

	
Incorporation:
	
  
	
Delaware

	  	  
	
Entity Type:
	
  
	
Corporation

	
Federal ID #:
	
  
	
57-0753360

 

	
Primary Address:
	
  
	
Registered Address:

	
P.O. Box 2498
	
  
	
1209 Orange Street

	
Hartsville, SC 29551
	
  
	
Wilmington, DE 19801

 

	
STOCKS:
	  	  	
  
	  	
  
	  
	  	  	  	  
	
Common Stock
	  	  	
  
	  	
  
	  
	
Price/Par Value:
	  	
$1
	
  
	
Date Authorized:
	
  
	  
	
CUSIP:
	  	  	
  
	
Authorized:
	
  
	
10,000

	
SYMBOL:
	  	  	
  
	
Outstanding:
	
  
	
5,000

	  	  	  	
  
	
Issued:
	
  
	
5,000

	  	  	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
Talley Industries, Inc.
	
  
	
5
	
  
	
20
	
  
	
1,000
	
  
	
Saturday, December 31, 1988

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

DIRECT SUBSIDIARIES:

 

 

 

 

 

Talley Realty Development, Inc.

 

	
Incorporation:
	
  
	
Delaware

	  	  
	
Entity Type:

Federal ID #:
	
  
	
Corporation

86-0285098

 

	
Primary Address:
	
  
	
Registered Address:

	  	
  
	
CT Corporation System

	  	
  
	
Corporation Trust Center

	  	
  
	
1209 Orange Street

	  	
  
	
Wilmington, DE 19801

 

	
STOCKS:
	  	  	
  
	  	
  
	  
	  	  	  	  
	
Common Stock
	  	  	
  
	  	
  
	  
	
Price/Par Value:
	  	
$1
	
  
	
Date Authorized:
	
  
	
Wednesday, June 06, 1973

	
CUSIP:
	  	  	
  
	
Authorized:
	
  
	
10,000

	
SYMBOL:
	  	  	
  
	
Outstanding:
	
  
	
1,000

	  	  	  	
  
	
Issued:
	
  
	
1,000

	  	  	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
Talley Realty Holding Company, Incorporated
	
  
	
3
	
  
	
100
	
  
	
1,000
	
  
	
Wednesday, December 23, 1998

	
Consideration:
	 	 	 	 	 	 	 	 

 

DIRECT SUBSIDIARIES:

 

 

 

 

 

Talley Realty Holding Company, Incorporated

 

	
Incorporation:
	
  
	
Delaware

	  	  
	
Entity Type:

Federal ID #:
	
  
	
Corporation

86-0497784

 

	
Primary Address:
	
  
	
Registered Address:

	  	
  
	
CT Corporation System

	  	
  
	
Corporation Trust Center

	  	
  
	
1209 Orange Street

	  	
  
	
Wilmington, DE 19801

 

	
STOCKS:
	  	  	
  
	  	
  
	  
	  	  	  	  
	
Common Stock
	  	  	
  
	  	
  
	  
	
Price/Par Value:
	  	
$1
	
  
	
Date Authorized:
	
  
	
Wednesday, December 23, 1998

	
CUSIP:
	  	  	
  
	
Authorized:
	
  
	
100

	
SYMBOL:
	  	  	
  
	
Outstanding:
	
  
	
100

	  	  	  	
  
	
Issued:
	
  
	
100

	  	  	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
Talley Industries, Inc.
Consideration:
	
  
	
3
	
  
	
100
	
  
	
100
	
  
	
Wednesday, December 23, 1998

 

DIRECT SUBSIDIARIES:

 

	  	  	  	  	  	  	  
	  	
  
	
Incorp/Formed in
	
  
	
%Ownership
	  	
Shares

	 	 	 	 	 	 	 
	
Talley Realty Development, Inc.
	
  
	
Delaware
	
  
	
100
	
%
	
1,000

 

 

 

 

 

Temple y Forja Fortuna, S.A. de C.V.

 

	
Incorporation:
	
  
	
Mexico

	  	  
	
Entity Type:
	
  
	
Corporation

 

	
Primary Address:
	
  
	
Registered Address:

	
Prolongacion Fulton No. 2 La Loma
	
  
	
Prolongacion Fulton No. 2 La Loma

	
54060 Tlalnepantla, Edo de
	
  
	
54060 Tlalnepantla, Edo de

 

	
STOCKS:
	
  
	  	
  
	  	
  
	  
	  	  	  
	
Minimum Fixed Capital Stock - New Pesos
	
  
	  	
  
	  
	
Price/Par Value:
	
  
	
1,000 Pesos
	
  
	
Date Authorized:
	
  
	
Friday, February 07, 1997

	
CUSIP:
	
  
	  	
  
	
Authorized:
	
  
	
25

	
SYMBOL:
	
  
	  	
  
	
Outstanding:
	
  
	
25

	  	
  
	  	
  
	
Issued:
	
  
	
25

	  	
  
	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
Aceros Fortuna, S.A. de C.V.
	
  
	
1
	
  
	
96
	
  
	
24
	
  
	
Friday, February 07, 1997

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  
	
Carpenter Investments, Inc.
	
  
	
2
	
  
	
4
	
  
	
1
	
  
	
Friday, February 07, 1997

	
Consideration:
	
  
	  	
  
	  	
  
	  	
  
	  

 

	
Variable Capital Stock - New Pesos
	
  
	  	
  
	  
	
Price/Par Value:
	
  
	
1,000 Pesos
	
  
	
Date Authorized:
	
  
	
Friday, February 07, 1997

	
CUSIP:
	
  
	  	
  
	
Authorized:
	
  
	
15

	
SYMBOL:
	
  
	  	
  
	
Outstanding:
	
  
	
15

	  	
  
	  	
  
	
Issued:
	
  
	
15

	  	
  
	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
Aceros Fortuna, S.A. de C.V.
Consideration:
	
  
	
3
	
  
	
100
	
  
	
15
	
  
	
Friday, February 07, 1997

 

DIRECT SUBSIDIARIES:

 

	  	
  
	
Incorp/Formed in
	
  
	
%Ownership
	  	
Shares

	 	 	 	 	 	 	 
	
Aceros Fortuna, S.A. de C.V.
	
  
	
Mexico
	
  
	  	
%
	
1

 

 

 

 

 

Carpenter Technology Hong Kong Limited

 

	
Incorporation:
	  	
Hong Kong

	  	  
	
Entity Type:

Federal ID #:
	
  
	
Corporation

1211560

 

	
Primary Address:
	
  
	
Registered Address:

	  	
  
	
22/F Bank of China Tower, 1 Garden Road

	  	
  
	
Hong Kong  Hong Kong

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred
	  
	 	 	 	 	 	 	 	 	 	 
	
CRS Holdings, Inc.
	
  
	  	
  
	  	
  
	
1
	
  
	  	  

 

DIRECT SUBSIDIARIES:

 

 

 

 

 

Carpenter Technology (Shanghai) Distribution Co Ltd.

 

	
Incorporation:
	
  
	
China

	  	  
	
Entity Type:
	
  
	
Corporation

 

	
Primary Address:
	
  
	
Registered Address:

	
Unit 3004
	
  
	  
	
No. 1010
	
  
	  
	
Hugihaizhong Rod

Shanghai, China  China
	
  
	  

 

DIRECT SUBSIDIARIES:

 

	
CRS Holdings, Inc.

 

 

 

 

PMT Divestiture Corp.

 

	
Incorporation:
	  	
California

	  	  
	
Entity Type:

Federal ID #:
	
  
	
Corporation

95-2862247

 

	
Primary Address:
	
  
	
Registered Address:

	  	
  
	
22221 Pine View Way

	  	
  
	
Petaluma, CA  94954

 

	
STOCKS:
	
  
	  	
  
	  	
  
	  
	  	  	  
	
Common Stock
	
  
	  	
  
	  
	
Price/Par Value:
	
  
	
$.01
	
  
	
Date Authorized:
	
  
	
Thursday, October 26, 1995

	
CUSIP:
	
  
	  	
  
	
Authorized:
	
  
	
3,000

	
SYMBOL:
	
  
	  	
  
	
Outstanding:
	
  
	
1,000

	  	
  
	  	
  
	
Issued:
	
  
	
1,000

	  	
  
	  	
  
	
# in Treasury:
	
  
	  

 

	
Current Owner(s)
	
  
	
Certificate No.
	
  
	
%Ownership
	
  
	
No. of Shares
	
  
	
Date Issued

or Transferred

	 	 	 	 	 	 	 	 	 
	
CARPENTER TECHNOLOGY CORPORATION

 

Consideration:
	
  
	
1
	
  
	
100
	
  
	
1,000
	
  
	
Thursday, October 26, 1995

 

DIRECT SUBSIDIARIES:

 

 

 

 

 

SCHEDULE 7.01

 

INDEBTEDNESS

 

	  	 	
Face
	 	 	
Discount/
	 	 	
I-Rate
	 	 	
Carrying
	 
	  	 	
Amount
	 	 	
Premium
	 	 	
Swaps
	 	 	
Value
	 
	
Senior Unsecured Notes 6.625% due 2013
	 	 	100.00	 	 	 	(0.33	)	 	 	2.18	 	 	 	101.85	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Medium Term Notes 6.28% to 7.08%+
	 	 	76.00	 	 	 	(0.01	)	 	 	-	 	 	 	75.99	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Medium Term Notes 7.625%
	 	 	100.00	 	 	 	(0.11	)	 	 	1.23	 	 	 	101.12	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Total
	 	 	276.00	 	 	 	(0.45	)	 	 	 	 	 	 	278.96	 

 

Standby Letters of Credit1

 

	  	 	  	 	  	 	  	 	
Maturity
	 	
Renewal
	 	  
	
 Number
	 	
Amount
	 	
Issuer
	 	
Beneficiary
	 	
Date
	 	
Date
	 	
Notes

	  	 	  	 	  	 	  	 	  	 	  	 	  
	
SM419125C
	 	
$8,200,000.00
	 	
Wachovia Bank
	 	
Commonwealth of Pennsylvania
	 	
07/31/10
	 	
9/29/2009
	 	
Automatic rollover provision

	 	 	 	 	 	 	 	 	 	 	 	 	 
	
SM419123C
	 	
$329,239.00
	 	
Wachovia Bank
	 	
National Union Fire Insurance Co.
	 	
07/31/10
	 	
9/24/2009
	 	
Automatic rollover provision

	 	 	 	 	 	 	 	 	 	 	 	 	 
	
SM419183C
	 	
$2,905,821.00
	 	
Wachovia Bank
	 	
The Travelers Indemnity Company
	 	
07/01/10
	 	  	 	
Automatic rollover provision

	 	 	 	 	 	 	 	 	 	 	 	 	 
	
SM419184C
	 	
$772,000.00
	 	
Wachovia Bank
	 	
Lumbermens Mutual Casualty Company
	 	
07/31/10
	 	
9/29/2009
	 	
Automatic rollover provision

 

 

1 All Standby Letters of Credit listed on this Schedule 7.01 are contingent obligations that have been cash-collateralized as of the Closing Date pursuant to that certain Cash Collateral Account and Reimbursement
Agreement, dated on or about the Closing Date, between Carpenter and Wachovia Bank, National Association

 

 

 

 

 

SCHEDULE 7.02

 

EXISTING LIENS

 

1)               Liens pursuant to that certain Cash Collateral Account and Reimbursement Agreement, dated on or about the Closing Date, between Carpenter and Wachovia Bank, National Association.

 

2)               Liens shown on the following attachment.

 

 

 

 

 

SALE OF ACCOUNTS RECEIVABLE:

 

	
DEBTOR NAME
	
JURISDICTION
	
SECURED PARTY
	
COLLATERAL
	
FILE #
	
FILE

DATE

	
Carpenter

Technology

Corporation
	
Delaware- SOS
	
Citibank, N.A.
	
Accounts receivable from Alcoa Inc purchased by Citibank, NA per the terms of the Supplier Agreement b/w Carpenter Technology Corporation and Citibank, NA
	
43256775 (O)

 

2009 2055405 (C)
	
11/18/04

 

06/26/09

 

 

 

 

 

EQUIPMENT LEASES: Liens arising from UCC Financing Statements relating to leases permitted by the Credit Agreement

 

	
DEBTOR NAME
	
JURISDICTION
	
SECURED PARTY
	
COLLATERAL
	
FILE #
	
FILE

DATE

	
Carpenter

Technology

Corporation
	
Delaware- SOS
	
General Electric Capital Corporation
	
Equipment lease
	
31154122 (O)

 

2008 0163541 (C)
	
05/05/03

 

01/14/08

	
Carpenter

Technology

Corporation
	
Delaware- SOS
	
Mellon US Leasing, a division of Mellon Leasing Corporation
	
Equipment lease
	
50913591 (O)

 

 
	
03/23/05

	
Carpenter

Technology

Corporation
	
Delaware- SOS
	
Mellon US Leasing, a division of Mellon Leasing Corporation
	
Furniture

 

 

Equipment lease
	
50947730 (O)
	
03/28/05

	
Carpenter

Technology

Corporation
	
Delaware- SOS
	
Mellon US Leasing, a division of Mellon Leasing Corporation
	
Furniture

 

 

Equipment lease
	
50947755 (O)
	
03/28/05

	
Carpenter

Technology

Corporation
	
Delaware- SOS
	
Mellon US Leasing, a division of Mellon Leasing Corporation
	
Office furniture

 

 

Equipment lease
	
51060939 (O)
	
04/06/05

	
Carpenter

Technology

Corporation
	
Delaware- SOS
	
Mellon US Leasing, a division of Mellon Leasing Corporation
	
Office furniture

 

 

Equipment lease
	
51696690 (O)
	
06/02/05

	
Carpenter

Technology

Corporation
	
Delaware- SOS
	
Mellon US Leasing, a division of Mellon Leasing Corporation
	
Office furniture

 

 

Equipment lease
	
51696716 (O)
	
06/02/05

	
Carpenter

Technology

Corporation
	
Delaware- SOS
	
Mellon US Leasing, a division of Mellon Leasing Corporation
	
Office furniture

 

 

Equipment lease
	
51764019 (O)
	
06/08/05

	
Carpenter

Technology

Corporation
	
Delaware- SOS
	
Mellon US Leasing, a division of Mellon Leasing Corporation
	
Furniture

 

 

Equipment lease
	
52654201 (O)
	
08/25/05

	
Carpenter

Technology

Corporation
	
Delaware- SOS
	
Barloworld Fleet Leasing LLC
	
All of the equipment now or hereafter leased by lessor to lessee including all of the accessories, additions, replacements, upgrades and substitutions thereto and therefore and all proceeds, including insurance proceeds thereof.

 

This financing statement is filed to cover the above collateral to the extent of lease of the above collateral may constitute a security interest under the uniform commercial code of any state.
	
52826676 (O)
	
09/13/05

	
Carpenter

Technology

Corporation
	
Delaware- SOS
	
Mellon US Leasing, a division of Mellon Leasing Corporation
	
Various warehouse equipment
	  	
10/21/05

 

 

 

 

 

SCHEDULE 7.03

 

INVESTMENTS

 

	PART I:
	 	 
	 	
None.

	 	 
	PART II:
	 	 
	1)	Equity investment made by Carpenter Technology Mauritius Ltd. on January 21,1999 the amount of $10.1 million for 26% ownership of Kalyani Carpenter Special Steels, Limited (KCSSL).
	 	 
	2)	Equity investment made by Carpenter Technology Mauritius Ltd. on January 21,1999 the amount of $0.48 million for 51% ownership of Kalyani Carpenter Metal Centres Private LTD.
	 	 
	3) 	Promissory Note loan made by Carpenter Technology Mauritius Ltd. on June 15, 2009 the amount of $1.0 million to Kalyani Carpenter Special Steels, Limited (KCSSL).

 

 

 

 

SCHEDULE 11.02

 

ADMINISTRATIVE AGENT’S OFFICE;

CERTAIN ADDRESSES FOR NOTICES

 

1.  BORROWER:

 

CARPENTER

and SUBSIDIARY BORROWERS:

101 W. Bern Street, P.O. Box 14662

Reading, PA 19601

Attention:  Michael Hajost, Vice President and Treasurer

Telephone:  (610) 208-3476

Telecopier:  (610) 736-8697

Electronic Mail: mhajost@cartech.com

Website Address:   www.cartech.com

U.S. Taxpayer Identification Number(s): 23-0458500

 

2.  ADMINISTRATIVE AGENT:

 

For borrowings, conversions, continuations, payments, etc:

 

Bank of America, N.A., as Administrative Agent

Mail Code: NC1-001-04-39

One Independence Center

101 N. Tryon St.

Charlotte, NC 28255-0001

Attention: Nilesh Patel, Credit Services Representative

Telephone: 980-386-5094

Telecopier: 704-719-8870

Electronic Mail: npatel@bankofamerica.com 

 

Wire Instructions:

 

(for payments in U.S. Dollars-USD)

 

Pay to: Bank of America, N.A.

     New York, NY

     ABA # 026009593

     Account No. 1366212250600

     Attn: Credit Services

     Ref: Carpenter Technology Corporation

 

 

 

 

 

(for payments in Pounds Sterling - GBP):

 

Pay to: Bank of America, London, England

     Sort Code: 165050

     Attn: Credit Services

     Ref: Carpenter Technology Corporation

     Swift ID:  BOFAGB22)

     A/C #: 65280027

 

(for payments in Euros - EUR):

 

Pay to: Bank of America, London, England

     A/C #: 65280019

     Swift ID:  BOFAGB22

     Attn: Credit Services

     Ref: Carpenter Technology Corporation

 

(for payments in Swedish Krona - SEK):                                                                           

 

Pay to: Svenska Handelsbanken, Stockholm, Sweden

     Swift ID: HANDSESS

     IBAN # SE87 6000 0000 0000 4061 8889

     Name: BOFAUS6S Credit Services

     Ref: Carpenter Technology Corporation

 

(for payments in Canadian Dollars - CAD):

 

Pay to: Bank of America, Canada Branch

     Swift ID:  BOFACATT

     Acct #: 90083255

     Attn: Loan Department

     Bank Code: 0241

     Transit #: 56792

     Ref: Carpenter Technology Corporation

 

For all other Notices to Administrative Agent (for Financial Reporting requirements, Bank Group Communications, etc.):

 

Bank of America, N.A., as Administrative Agent

Mail Code: IL1-231-10-41

231 S. LaSalle St.

Chicago, IL 60604

Attention: Roberto O. Salazar, Agency Management Officer

Telephone: 312-828-3185

Telecopier: 877-207-2382

Electronic Mail: roberto.o.salazar@bankofamerica.com

 

 

 

 

 

3.  L/C ISSUER:

 

For Standby Letters of Credit:

 

Bank of America, N.A., as L/C Issuer

Mail Code: PA6-580-02-30

1 Fleet Way

Scranton, PA 18507

Attention: Alfonso Malave, Jr., VP & Operations Manager

Telephone: 570-330-4212

Telecopier: 570-330-4186

Electronic Mail: alfonso.malave@bankofamerica.com

 

For Commercial Letters of Credit:

 

Bank of America, N.A., as L/C Issuer

Mail Code: PA6-580-02-30

1 Fleet Way

Scranton, PA 18507

Attention: Ann T. Rodeghiero, AVP & Processing Team Manager

Telephone: 570-330-4804

Telecopier: 212-293-8117

Electronic Mail: anne.t.rodeghiero@bankofamerica.com

 

4.  SWING LINE LENDER:

 

Bank of America, N.A., as Swing Line Lender

Mail Code: NC1-001-04-39

One Independence Center

101 N. Tryon St.

Charlotte, NC 28255-0001

Attention: Nilesh Patel, Credit Services Representative

Telephone: 980-386-5094

Telecopier: 704-719-8870

Electronic Mail: npatel@bankofamerica.com 

 

Wire Instructions:

 

(for payments in U.S. Dollars-USD)

 

Pay to: Bank of America, N.A.

     New York, NY

     ABA # 026009593

     Account No. 1366212250600

     Attn: Corporate Credit Services

     Ref: Carpenter Technology Corporation

 

 

 

 

 

EXHIBIT A

 

FORM OF COMMITTED LOAN NOTICE

 

Date:  ___________, _____

 

To:         Bank of America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that certain Credit Agreement, dated as of November 24, 2009 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined
therein being used herein as therein defined), among Carpenter Technology Corporation, a Delaware corporation (“Carpenter”), the Subsidiary Borrowers from time to time party thereto, the Lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

Carpenter hereby requests, on behalf of itself or, if applicable, the Subsidiary Borrower referenced in item 6 below (the “Applicable Subsidiary Borrower”) (select one):

 

o A Borrowing of Committed Loans                                              o A
conversion or continuation of Loans

 

1.           On ______________________________ (a Business Day).

 

2.           In the amount of ___________________________.

 

3.           Comprised of _____________________________.

                   [Type of Committed Loan requested]

 

4.           In the following currency: ________________________

 

5.           For Eurocurrency Rate Loans:  with an Interest Period of _____ months.

 

6.           On behalf of ____________________________ [insert name of applicable Subsidiary Borrower].

 

The Committed Borrowing, if any, requested herein complies with Section 2.01 of the Agreement.

 

	 	CARPENTER TECHNOLOGY CORPORATION
	 	 	 	 	 
	  	
By:
	  	  	  
	 	 	 
	  	
Name:
	  
	 	 	 	 
	  	
Title:
	  	  

 

 

 

 

EXHIBIT B-1

 

FORM OF BID REQUEST

 

To:         Each of the Lenders under the Credit Agreement referred to below

 

With a copy to:   Bank of America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that certain Credit Agreement, dated as of November 24, 2009 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined
therein being used herein as therein defined), among Carpenter Technology Corporation, a Delaware corporation (“Carpenter”), the Subsidiary Borrowers from time to time party thereto, the Lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

The Lenders are invited to make Bid Loans:

 

1.           On _____________________________ (a Business Day).

 

2.           In an aggregate amount not exceeding $ _________________ (with any sublimits set forth below).

 

3.           Comprised of (select one):

 

o Bid Loans based on an Absolute Rate     o Bid Loans based on Eurocurrency Base Rate

 

	
Bid Loan No.
	
Interest Period
requested
	
Maximum principal
amount requested

	
1
	
_______days/mos
	
$

	
2
	
_______days/mos
	
$

	
3
	
_______days/mos
	
$

 

4.           Currency of the Bid Loans requested: __________________________________.

 

The Bid Borrowing requested herein complies with Section 2.03 of the Agreement.

 

 

 

 

Responses by the Lenders must be in substantially the form of Exhibit B-2 to the Agreement and must be received by the Lender by the time specified in Section
2.03 of the Agreement for submitting Competitive Bids.

 

	 	CARPENTER TECHNOLOGY CORPORATION
	 	 	 	 	 
	  	
By:
	  	  	  
	  	
Name:
	  
	  	
Title:
	  	  

 

 

 

 

EXHIBIT B-2

 

FORM OF COMPETITIVE BID

 

___________ , ____

 

To:         Carpenter Technology Corporation

 

With a copy to:   Bank of America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that certain Credit Agreement, dated as of November 24, 2009 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined
therein being used herein as therein defined), among Carpenter Technology Corporation, a Delaware corporation (“Carpenter”), the Subsidiary Borrowers from time to time party thereto, the Lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

In response to the Bid Request dated _____________________________, _______, the undersigned offers to make the following Bid Loan(s) in [insert currency requested]:

 

1.           Borrowing date: __________________________ (a Business Day).

 

2.           In an aggregate amount not exceeding $ ____________ (with any sublimits set forth below).

 

3.           Comprised of:

 

	
Bid Loan No.
	
Interest Period

offered
	
Bid Maximum
	
Absolute Rate

Bid or Eurocurrency

Margin Bid*

	
1
	
_______days/mos
	
$_______________
	
(- +)  _______%

	 	 	 	 
	
2
	
_______days/mos
	
$_______________
	
(- +)  _______%

	 	 	 	 
	
3
	
_______days/mos
	
$_______________
	
(- +)  _______%

* Expressed in multiples of 1/100th of a basis point.

 

 

 

 

 

Contact Person: _____________________ Telephone: _____________________

 

	 	[LENDER]
	 	 	 	 	 
	  	
By:
	  	  	  
	  	
Name:
	  
	  	
Title:
	  	  

 

	********************************************************************************************************************************************

 

THIS SECTION IS TO BE COMPLETED BY CARPENTER IF IT WISHES TO ACCEPT ANY OFFERS CONTAINED IN THIS COMPETITIVE BID:

 

The offers made above are hereby accepted in the amounts set forth below:

 

	
Bid Loan No.
	
Principal Amount Accepted

	  	
$

	  	
$

	  	
$

 

CARPENTER TECHNOLOGY CORPORATION

 

	
By:
	  	  	  	  
	 	 	 
	
Name:
	  	  
	 	 	 	 
	
Title:
	  	  	  
	 	 	 	 
	
Date:
	  	  	  

 

 

 

 

 

EXHIBIT C

 

FORM OF SWING LINE LOAN NOTICE

 

Date:  ___________, _____

 

To:         Bank of America, N.A., as Swing Line Lender

       Bank of America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that certain Credit Agreement, dated as of November 24, 2009 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined
therein being used herein as therein defined), among Carpenter Technology Corporation, a Delaware corporation (“Carpenter”), the Subsidiary Borrowers from time to time party thereto, the Lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

The undersigned hereby requests a Swing Line Loan:

 

1.           On ________________________________ (a Business Day).

 

2.           In the amount of $_____________________.

 

The Swing Line Borrowing requested herein complies with Section 2.05 of the Agreement.

 

	 	CARPENTER TECHNOLOGY CORPORATION
	 	 	 	 	 
	  	
By:
	  	  	  
	  	
Name:
	  
	  	
Title:
	  	  

 

 

 

 

 

EXHIBIT D

 

FORM OF NOTE

 

___________________________

 

FOR VALUE RECEIVED, the undersigned [Carpenter Technology Corporation, a Delaware corporation (“Carpenter”) and [________], a [______ corporation/limited liability company and subsidiary of Carpenter], as a Borrower (the “Borrower”)] hereby promises to pay to _____________________ or registered assigns (the “Lender”),
in accordance with the provisions of the Agreement (as hereinafter defined), the principal amount of each Loan from time to time made by the Lender to the Borrower under that certain Credit Agreement, dated as of November 24, 2009 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein
as therein defined), among Carpenter, the Subsidiary Borrowers from time to time party thereto, the Lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

The Borrower promises to pay interest on the unpaid principal amount of each Loan from the date of such Loan until such principal amount is paid in full, at such interest rates and at such times as provided in the Agreement.  Except as otherwise provided in Section
2.05(f) of the Agreement with respect to Swing Line Loans, all payments of principal and interest shall be made to the Administrative Agent for the account of the Lender in the currency in which such Committed Loan was denominated and in Same Day Funds at the Administrative Agent’s Office for such currency.  If any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due date thereof until the date of actual payment (and
before as well as after judgment) computed at the per annum rate set forth in the Agreement.

 

This Note is one of the Notes referred to in the Agreement, is entitled to the benefits thereof and may be prepaid and reborrowed in whole or in part subject to the terms and conditions provided therein.  This Note is also entitled to the benefits of the Continuing Guaranty of Carpenter under the Agreement.  Upon the
occurrence and continuation of one or more of the Events of Default specified in the Agreement, all amounts then remaining unpaid on this Note shall become, or may be declared to be, immediately due and payable all as provided in the Agreement.  Loans made by the Lender shall be evidenced by one or more loan accounts or records maintained by the Lender in the ordinary course of business. The Lender may also attach schedules to this Note and endorse thereon the date, amount, currency and maturity of
its Loans and payments with respect thereto.

 

The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment, protest and demand and notice of protest, demand, dishonor and non-payment of this Note.

 

 

 

 

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

	 	[CARPENTER TECHNOLOGY CORPORATION]
	 	 	 	 	 
	 	OR
	 	 	 	 	 
	 	[APPLICABLE SUBSIDIARY BORROWER]
	 	 	 	 	 
	  	
By:
	  	  	  
	  	
Name:
	  
	  	
Title:
	  	  

 

 

 

 

 

EXHIBIT E

 

FORM OF COMPLIANCE CERTIFICATE

 

Financial Statement Date: ________,

 

To:         Bank of America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that certain Credit Agreement, dated as of November 24, 2009 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined
therein being used herein as therein defined), among Carpenter Technology Corporation, a Delaware corporation (“Carpenter”), the Subsidiary Borrowers from time to time party thereto, the Lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the _____________________________________ of Carpenter, and that, as such, he/she is authorized to execute and deliver this Certificate to the Administrative Agent on the behalf of Carpenter, and that:

 

[Use following paragraph 1 for fiscal year-end financial statements]

 

1.           Carpenter has delivered the year-end audited financial statements required by Section 6.01(a) of the Agreement for the fiscal year of Carpenter ended as of the
above date, together with the report and opinion of an independent certified public accountant required by such section.

 

[Use following paragraph 1 for fiscal quarter-end financial statements]

 

1.           Carpenter has delivered the unaudited financial statements required by Section 6.01(b) of the Agreement for the fiscal quarter of Carpenter ended as of the above
date.  Such financial statements fairly present the financial condition, results of operations and cash flows of Carpenter and its Subsidiaries in accordance with GAAP as at such date and for such period, subject only to normal year-end audit adjustments and the absence of footnotes.

 

2.           The undersigned has reviewed and is familiar with the terms of the Agreement and has made, or has caused to be made under his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of Carpenter during the accounting period covered
by such financial statements, and

 

[select one:]

 

[to the knowledge of the undersigned, during such fiscal period Carpenter performed and observed each covenant and condition of the Loan Documents applicable to it, and no Default
has occurred and is continuing.]

 

--or--

 

 

 

 

 

[to the knowledge of the undersigned, during such fiscal period the following covenants or conditions have not been performed or observed and the following is a list of each
such Default and its nature and status:]

 

4.           The representations and warranties of (i) the Borrowers contained in Article V of the Agreement and (ii) each Loan Party contained in each other Loan Document
or in any document furnished at any time under or in connection with the Loan Documents, are true and correct in all material respects (unless such representation and warranty is subject to a materiality or Material Adverse Effect qualifier in which case it will be true and correct in all material respects) on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except
that for purposes of this Compliance Certificate, the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the
Agreement, including the statements in connection with which this Compliance Certificate is delivered.

 

5.           The financial covenant analyses and information set forth on Schedules 1 and 2 attached
hereto are true and accurate on and as of the date of this Certificate.

 

IN WITNESS WHEREOF, the undersigned has executed this Certificate as

 

of ________________, ___________.

 

	 	CARPENTER TECHNOLOGY CORPORATION
	 	 	 	 	 
	  	
By:
	  	  	  
	  	
Name:
	  
	  	
Title:
	  	  

 

 

 

 

For the Quarter/Year ended ___________________(“Statement Date”)

 

SCHEDULE 1

to the Compliance Certificate

($ in 000’s)

 

	I.	Section 7.12(a) – Interest Coverage Ratio.

 

	
  
	
A.
	
Consolidated EBITDA for four consecutive fiscal quarters ending on above date (“Subject Period”):

 

	 	
1.
	
Consolidated Net Income for Subject Period:
	
$_____________
	 
	 	 	 	 	 
	 	
2.
	
Consolidated Interest Expense for Subject Period:
	
$_____________
	 
	 	 	 	 	 
	 	3.	
Provision for income taxes for Subject Period:
	
$_____________
	 
	 	 	 	 	 
	 	
4.
	
Depreciation expenses for Subject Period:
	
$_____________
	 
	 	 	 	 	 
	 	
5.
	
Amortization expenses for Subject Period:
	
$_____________
	 
	 	 	 	 	 
	 	
6.
	
Non-cash expense for Subject Period:
	
$_____________
	 
	 	 	 	 	 
	 	
7.
	
Non-cash retiree medical expenses:
	
$_____________
	 
	 	 	 	 	 
	 	
8.
	
Non-cash Pension Plan income or expense:
	
$_____________
	 
	 	 	 	 	 
	 	
9.
	
Consolidated EBITDA (Lines I.A.1 + 2 + 3 + 4 + 5 + 6 – 7 – 8):
	
$_____________
	 

 

	 	B.	Consolidated Interest Expense for Subject Period:	
$_____________
	 
	 	 	 	 	 
	 	C.	 Consolidated Interest Coverage Ratio (Line I.A.9 ÷ Line I.B):	___________to 1	 
	 	 	 	 	 
	 	Minimum required:	 	 

 

	
Four Fiscal Quarters Ending
	
Minimum Interest Coverage Ratio

	
Closing Date through

September 30, 2010
	
3.00 to 1.00

	 	 
	
__________ 31, 2010 through

September 30, 2011
	
3.25 to 1.00

	 	 
	
__________ 31, 2011 and

thereafter
	
3.50 to 1.00

 

 

 

 

 

	II.	Section 7.12 (b) – Debt to Capital Ratio.	 	 
	 	 	 	 	 	 
	 	A.	Consolidated Indebtedness at Statement Date:	
$_____________
	 
	 	 	 	 	 	 
	 	B.	Consolidated Capitalization at Statement Date:	 	 
	 	 	 	 	 	 
	 	 	1.	Consolidated Indebtedness:	
$_____________
	 
	 	 	 	 	 	 
	 	 	2.	Consolidated stockholders’ equity:	
$_____________
	 
	 	 	 	 	 	 
	 	 	3.	Consolidated Capitalization (Lines I.B.1 + 2)	
$_____________
	 
	 	 	 	 	 	 
	 	C.	Debt to Capital Ratio (Line II.A ÷ Line II.B.3):	
__________
	%
	 	 	 	 	 	 
	 	Maximum permitted: 55%	 	 

 

 

 

 

 

For the Quarter/Year ended __________________(“Statement Date”)

 

SCHEDULE 2

to the Compliance Certificate

($ in 000’s)

 

Consolidated EBITDA

(in accordance with the definition of Consolidated EBITDA

as set forth in the Agreement)

 

	
 

 

Consolidated

EBITDA
	
 

Quarter

Ended

_________
	
 

Quarter

Ended

_________
	
 

Quarter

Ended

_________
	
 

Quarter

Ended

_________
	
Twelve

Months

Ended

_________

 

	
Consolidated Net Income
	  	  	  	  	  
	
+Consolidated Interest Expense
	  	  	  	  	  
	
+income taxes
	  	  	  	  	  
	
+depreciation expense
	  	  	  	  	  
	
+amortization expense
	  	  	  	  	  
	
+ non-cash expenses
	  	  	  	  	  
	
- non-cash retiree medical expenses
	  	  	  	  	  
	
- non-cash Pension Plan income or expense
	  	  	  	  	  
	
= Consolidated EBITDA
	  	  	  	  	  

 

 

 

 

EXHIBIT F-1

 

ASSIGNMENT AND ASSUMPTION

 

This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between the Assignor identified in item 1 below (the “Assignor”)
and the Assignee identified in item 2 below (the “Assignee”).  Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (the “Agreement”), receipt of a copy of which is hereby acknowledged
by the Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

 

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated
below (i) all of the Assignor’s rights and obligations in its capacity as a Lender under the Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including, without limitation, the Letters of Credit and the Swing Line Loans included in such facilities) and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at
law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned by the Assignor to the Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned Interest”).  Each such sale and assignment is without recourse to the Assignor and, except as expressly provided
in this Assignment and Assumption, without representation or warranty by the Assignor.

 

	1.	Assignor:	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	2.	Assignee:	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	[for the Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]]
	 	 	 	 
	3.	Borrower(s):	 	 
	 	 	 	 
	
4.
	
Administrative Agent: Bank of America, N.A., as the administrative agent under the Agreement

 

 

 

 

 

	
5.
	
Administrative Agent: Agreement, dated as of November 24, 2009 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein
defined), among Carpenter Technology Corporation, a Delaware corporation (“Carpenter”), the Subsidiary Borrowers from time to time party thereto (together with Carpenter, the “Borrowers” and, each a “Borrower”),
the Lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer

	 	 
	6.	Assigned Interest:

 

	
 

 

 

Assignor
	
 

 

 

Assignee
	
 

 

Facility

Assigned
	
Aggregate Amount

of Commitment

for all Lenders1
	
Amount of

Commitment

Assigned
	
Percentage

Assigned of

Commitment2
	
 

 

CUSIP

Number

 

	  	  	
_________
	
$_______________
	
$___________
	
___________%
	  
	  	  	
_________
	
$_______________
	
$___________
	
___________%
	  
	  	  	
_________
	
$_______________
	
$___________
	
___________%
	  

 

	[7.	Trade Date:                      __________________]3

 

Effective Date: __________________, 20__ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

 

[Remainder of the page intentionally left blank]

 

1 Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective
Date.  

2 Set forth, to at least 9 decimals, as a percentage of the Commitment of all Lenders thereunder.  

3 To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date.

 

 

 

 

 

The terms set forth in this Assignment and Assumption are hereby agreed to:

 

	  	
ASSIGNOR

	  	
[NAME OF ASSIGNOR]

	  	  	  
	  	
By:
	  
	  	  	
Title:

 

	  	
ASSIGNEE

	  	
[NAME OF ASSIGNEE]

	  	  	  
	  	
By:
	  
	  	  	
Title:

 

[Consented to and] 4 Accepted:

 

	
BANK OF AMERICA, N.A., as
	  
	
  Administrative Agent
	  
	  	  	  
	
By:
	  	  
	  	
Title:
	  
	  	  	  
	
[Consented to:]5
	  
	  	  	  
	
[CARPENTER TECHNOLOGY CORPORATION]

	  	  	  
	
By:
	  	  
	  	
Title:
	  

 

4 To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement.

5 To be added only if the consent of Carpenter and/or other parties (e.g. Swing Line Lender, L/C Issuer) is required by the terms of the Credit Agreement.

 

 

 

 

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

 

STANDARD TERMS AND CONDITIONS FOR

 

ASSIGNMENT AND ASSUMPTION

 

1.              Representations and Warranties.

 

1.1.           Assignor.  the Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest
is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value
of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

 

1.2.           Assignee.  the Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and
deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Agreement, (ii) it meets all the requirements to be an assignee under Section 11.06 of the Agreement (subject to such consents, if any, as may be required under Section
11.06 of the Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring assets of such
type, (v) it has received a copy of the Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section __ thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest, (vi) it has, independently and without reliance upon the Administrative Agent or any other Lender and
based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest, and (vii) if it is a Foreign Lender, attached hereto is any documentation required to be delivered by it pursuant to the terms of the Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance upon the Administrative Agent, the Assignor or any other Lender,
and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

 

 

 

 

 

2.           Payments.  From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments
of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.

 

3.           General Provisions.  This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors
and assigns.  This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

 

 

 

 

EXHIBIT F-2

 

FORM OF ADMINISTRATIVE QUESTIONNAIRE

 

[See attached]

 

 

 

 

 

EXHIBIT G

 

FORM OF SUBSIDIARY BORROWER

REQUEST AND ASSUMPTION AGREEMENT

 

Date:  ___________, _____

 

To:         Bank of America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

This Subsidiary Borrower Request and Assumption Agreement is made and delivered pursuant to Section 2.15 of that certain Credit Agreement, dated as of November 24, 2009 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Agreement”), among Carpenter Technology Corporation, a Delaware corporation (“Carpenter”), the Subsidiary Borrowers from time to time party thereto, the Lenders from time to time party thereto and Bank of America, N.A., as
Administrative Agent, Swing Line Lender and L/C Issuer, and reference is made thereto for full particulars of the matters described therein.  All capitalized terms used in this Subsidiary Borrower Request and Assumption Agreement and not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement.

 

Each of ______________________ (the “Subsidiary Borrower”) and Carpenter hereby confirms, represents and warrants to the Administrative Agent and the Lenders that the Subsidiary Borrower is a Subsidiary of Carpenter.

 

The documents required to be delivered to the Administrative Agent under Section 2.15 of the Credit Agreement will be furnished to the Administrative Agent in accordance with the requirements of the Credit Agreement.

 

Complete if the Subsidiary Borrower is a Domestic Subsidiary:  The true and correct U.S. taxpayer identification number of the Subsidiary Borrower
is _____________.

 

Complete if the Subsidiary Borrower is a Foreign Subsidiary:  The true and correct unique identification number that has been issued to the Subsidiary
Borrower by its jurisdiction of organization and the name of such jurisdiction are set forth below:

 

	
Identification Number
	
Jurisdiction of Organization
	 
	  	  	 
	  	  	 

 

The parties hereto hereby confirm that with effect from the date of the Subsidiary Borrower Notice for the Subsidiary Borrower, the Subsidiary Borrower shall have obligations, duties and liabilities toward each of the other parties to the Credit Agreement identical to those which the Subsidiary Borrower would have had if the Subsidiary
Borrower had been an original party to the Credit Agreement as a Borrower.  Effective as of the date of the Subsidiary Borrower Notice for the Subsidiary Borrower, the Subsidiary Borrower confirms its acceptance of, and consents to, all representations and warranties, covenants, and other terms and provisions of the Credit Agreement.

 

 

 

 

 

The parties hereto hereby request that the Subsidiary Borrower be entitled to receive Loans under the Credit Agreement, and understand, acknowledge and agree that neither the Subsidiary Borrower nor Carpenter on its behalf shall have any right to request any Loans for its account until the effective date designated by the Administrative
Agent in a Subsidiary Borrower Notice delivered to Carpenter and the Lenders pursuant to Section 2.15 of the Credit Agreement.

 

This Subsidiary Borrower Request and Assumption Agreement shall constitute a Loan Document under the Credit Agreement.

 

THIS SUBSIDIARY BORROWER REQUEST AND ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

IN WITNESS WHEREOF, the parties hereto have caused this Subsidiary Borrower Request and Assumption Agreement to be duly executed and delivered by their proper and duly authorized
officers as of the day and year first above written.

 

	 	[SUBSIDIARY BORROWER]
	  	  	  	  
	  	
By:
	  
	  	
Title:
	  

 

	 	 CARPENTER TECHNOLOGY CORPORATION
	  	  	  	  
	  	
 By:
	  
	  	
 Title:
	  

 

 

 

 

 

EXHIBIT H

 

FORM OF SUBSIDIARY BORROWER NOTICE

 

Date:  ___________, _____

 

To:         Carpenter Technology Corporation

 

The Lenders party to the Credit Agreement referred to below

 

Ladies and Gentlemen:

 

This Subsidiary Borrower Notice is made and delivered pursuant to Section 2.15 of that certain Credit Agreement, dated as of November 24, 2009 (as amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Agreement”), among Carpenter Technology Corporation, a Delaware corporation (“Carpenter”), the Subsidiary Borrowers from time to time party thereto, the Lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent, Swing
Line Lender and L/C Issuer, and reference is made thereto for full particulars of the matters described therein.  All capitalized terms used in this Subsidiary Borrower Notice and not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement.

 

The Administrative Agent hereby notifies Carpenter and the Lenders that effective as of the date hereof [_________________________] shall be a Subsidiary Borrower and may receive Loans for its account on the terms and conditions set forth in the Credit Agreement.

 

This Subsidiary Borrower Notice shall constitute a Loan Document under the Credit Agreement.

 

	 	
BANK OF AMERICA, N.A.,

as Administrative Agent

	  	  	  	  
	  	
By:
	  
	  	
Title:Amendment No. 3 to Employment Agreement - Christopher J. Pappas

 Exhibit 10.1 
 AMENDMENT NO. 3 TO 
 EMPLOYMENT AGREEMENT 

 This Amendment No. 3 (“Amendment”) to the Employment Agreement, dated November 9, 2005, between
Luby’s, Inc., a Delaware corporation (“Company”), and Christopher J. Pappas, a resident of Houston, Texas (“Executive”) is executed as of November 19, 2009, (the “Effective Date”). For purposes
of this Amendment, “Luby’s” or the “Company” shall include the subsidiaries of Company. 
 RECITALS

 WHEREAS, the parties entered into the following agreements: 
 (1) Employment Agreement, dated November 9, 2005 
 (2) Amendment No. 1 to Employment Agreement, dated October 29, 2007 
 (3)
Amendment No. 2 to Employment Agreement, dated November 19, 2008 
 (Collectively referred to as
“Agreements”); 
 WHEREAS, the parties desire to modify said Agreements as hereinafter set forth; and 
 NOW, THEREFORE, for and in consideration of the mutual promises, covenants and obligations contained herein, said Agreements shall be
modified as follows, as of the effective date: 
 1. Section 4 of the Agreements is hereby amended and restated as follows:

 “4. Compensation. Executive’s compensation during his employment under the terms of this Agreement shall be as
follows: 
 (a) Base Salary. Commencing November 19, 2009, Luby’s shall pay to Executive a fixed
annual base salary (the “Base Salary”) of Two Hundred and Fifty Thousand Dollars ($250,000) for each year. The Base Salary shall be payable in equal, semi-monthly installments on or about the 15th day and last day of each month or at such
other times and in such installments as may be agreed between Luby’s and Executive. All payments shall be subject to the deduction of payroll taxes, income tax withholdings, and similar deductions and withholdings as required by law.

 (b) Bonus. During each year of the Term, in addition to the Base Salary, Executive shall be eligible
but not entitled to receive incentive compensation in an amount that the independent Board of Directors of the Company or an authorized Committee, shall determine, solely based upon the Company’s performance relative to Board-approved goals
relating to the Company’s achievement of same-store sales (50%) and earnings before interest, taxes, depreciation and amortization (50%) targets.” 

 IN WITNESS WHEREOF, the Parties have executed this Amendment effective as of the Effective Date. 

  

							
	 LUBY’S, INC.
	 		 	CHRISTOPHER J. PAPPAS
				
	By:	 	/s/ Gasper Mir, III	 		 	/s/ Christopher J. Pappas
	Name:	 	GASPER MIR, III	 		 	
	Title:	 	CHAIRMAN OF THE BOARD

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