Document:

ex10_1.htm

Exhibit 10.1

 

Modine Holding GmbH

Mr. Klaus Feldmann

Kelterstraße 3

72666 Neckartailfingen

Filderstadt, March 30st, 2009

SERVICE CONTRACT FOR MANAGING DIRECTOR

Dear Mr. Feldmann,

Modine Holding GmbH, Arthur-B.-Modine-Straße,

represented by its shareholder(s) Modine Manufacturing Company

the latter represented by Gregory T. Troy, its Vice President & Chief Human Resources Officer,

- hereinafter referred to as "Modine" -

is concluding the following managing director service contract with you:

Article 1 - Position and Scope of Duties

	
1.1
	
As per April 1, 2000 you have been appointed Managing Director of Modine as well as Modine Europe GmbH. You have also been appointed by Modine Manufacturing Company as Regional Vice President of Modine Manufacturing Company for Europe.  Modine can assign responsibilities to you as needed to fulfil your responsibilities.

	
1.2
	
In your capacity as Managing Director, you are in particular responsible for the management of Modine’s Original Equipment operations in Europe.

	
1.3
	
The shareholders may, at any time, appoint additional managing directors ("Geschäftsführer") and/or assign different and/or ad­ditional responsibilities to you.

  

  

  

 

 

 

	
1.4
	
You shall perform your duties as managing director by obser­ving the diligence of a prudent business­man in accor­dance with the provisions of this Ser­vice Con­tract, Modine's Articles of Incorporation (Gesellschaftsvertrag), the gener­al and specific directi­ves or instructions given by the share­hol­ders and in accordance with the law.

Article 2 - Other Activities

You shall devote your full working time and capacity to the fulfillment of your duties hereunder. Any other activity for remu­nera­tion and any activity which normally en­titles to remunera­tion, including any part time work, is subject to the prior written consent of the sharehol­ders. The sharehol­ders may refuse
to grant such consent at their discretion.

Article 3 - Transactions Subject to Consent

Your authority to transact business on behalf of Modine and Modine Europe GmbH is subject to the specific terms of Modine and Modine Europe’s current Articles of Incorporation (Gesellschaftsvertrag), as well as internal policies and procedures of Modine and Modine Manufacturing Company.

Article 4 - Inventions

	
4.1
	
All rights pertaining to inventions, whether patent­able or not, and to proposals for technical improve­ments made or submitted by you and to computer software developed by you (herein­after jointly called "Inventions") during the term of this Servi­ce Contract shall be deemed acquired by Modine and compensated by your base salary agreed in Sec. 5.1 herebelow without you being entitled to any additional
remuneration. You shall in­form Modine or a person designated by Modine immediately of any Inventions in writing and you shall assist Modine in acquiring patent or other industrial property rights, if Modine so de­sires.

	
4.2
	
Subsection 4.1 above shall apply to any Inventions no mat­ter whether

	 	
a.
	
they are related to the business of Modine or not,

	 	
b.
	
they are based on experience and Know-how of Modine or not, or

	 	
c.
	
they ema­nate­ from such duties of activities as are to be per­formed by you as a managing director within Modine, or

	 	
d.
	
they have been made during or outside normal business hours of Modine.

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Modine Holding GmbH, Arthur-B.-Modine-Straße, D-70794 Filderstadt

Phone (0711) 7094-0, Fax (0711) 7094-2297, Amtsgericht Stuttgart HRB 223750

Geschäftsführer: Klaus A. Feldmann, Bradley C. Richardson, Thomas A. Burke,

Dresdner Bank AG, Stuttgart, Konto 907 453 300, BLZ 600 800 00

  

Seite 2 of 6

  

 

 

 

	
4.3
	
Modine's right to Inventions acquired hereunder shall in no way be affected by any amendments to or the termina­tion of this Service Contract.

Article 5 - Remuneration

	
5.1
	
You shall be entitled to a gross annual salary in the amount of EUR 293,645 to be paid in arrears in 12 equal monthly instalments.

	
5.2
	
You shall furthermore be entitled to earn a bonus according to the terms of the Modine Management Incentive Plan, which currently is based on the return on assets employed for Modine Manufacturing Company worldwide.  The Modine Management Incentive Plan is reviewed annually by the Modine Manufacturing Company Board of Directors (or a committee thereof), which reserves the right to amend the agreed targets
and the bonus rates at any time, particularly at the beginning of each fiscal year.

	
5.3
	
Your salary shall be reviewed annually. The finan­cial and economic si­tua­tion of Modine and your per­sonal perfor­mance shall be considered. The decision whether to increase your salary shall remain in the sole discretion of the shareholder(s).

	
5.4
	
By payment of the above mentioned remuneration, all activ­i­ties which you have to perform under this Service Contract, including your acting for subsidiaries or affiliated companies of Modine shall be compensated. In par­ticu­lar, you shall not be entitled to any addi­tional com­pensation for overtime work.

Article 6 - Other Benefits

	
6.1
	
Travel expenses and other necessary expenses incurred by you in the furtherance of your duties hereunder shall upon presentation of proper receipts be reimbursed according to the guidelines of Modine and within the frame­work of the prin­ciples applicable in Germany for tax purposes.

	
6.2
	
Modine shall provide you with a company car for business and private use according to the terms of the policy entitled “Richtlinie für die Vergabe von Dienstwagen.”

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Modine Holding GmbH, Arthur-B.-Modine-Straße, D-70794 Filderstadt

Phone (0711) 7094-0, Fax (0711) 7094-2297, Amtsgericht Stuttgart HRB 223750

Geschäftsführer: Klaus A. Feldmann, Bradley C. Richardson, Thomas A. Burke,

Dresdner Bank AG, Stuttgart, Konto 907 453 300, BLZ 600 800 00

  

Seite 3 of 6

  

 

 

 

	
6.3
	
Modine shall take out accident insurance for you with the following benefits: in case of death EUR 255,646, in case of invalidity EUR 511,292. In case of your incapacity to work and continued salary payment by Modine in accordance with Sec. 7.3 herebelow, potential insurance payments shall be transferred to Modine for this period of time.

	
6.4
	
Modine grants you pension benefits since January 31, 2003 according to the benefit plan attached as Schedule 1 and will make an annual contribution of 10% of your yearly basic salary as agreed from time to time. The pension benefits will be granted on the basis of a reinsured support fund (rückgedeckte Unterstützungskasse). However, you are free to pay this annual contribution in a private pension plan.

Article 7 - Inability to Perform Duties

	
7.1
	
In case you shall be unable to perform your duties under this Service Contract, you shall inform Modine of such absence and its prospective duration without delay. Upon request, you shall inform Modine of the reasons for such absence.

	
7.2
	
In case of absence for medical reasons, you shall submit prior to the end of the third calendar day of your absence a medical certificate concerning your incapacity to work and its prospective duration. If the absence continues longer than indicated on the medical certificate, you shall submit a new medical certificate within three days.

	
7.3
	
In the event of incapacity to perform the duties under this Service Contract due to illness or accident or other reasons beyond your control, you shall be granted your monthly gross base salary according to Article 5.1 as well as your bonus according to 5.2 of this Service Contract for a further period of up to six months. Sick-pay you receive from your health insurance shall be deducted from such continued salary
payment. In case your incapacity to work exceeds six months, for another six consecutive months you shall receive your monthly gross base salary according to 5.1 of this Service Contract, less the gross salary Modine must pay a substitute.

Article 8 - Vacation

	
8.1
	
You shall be entitled to an annual vaca­tion of 30 working days excluding Saturdays.

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Modine Holding GmbH, Arthur-B.-Modine-Straße, D-70794 Filderstadt

Phone (0711) 7094-0, Fax (0711) 7094-2297, Amtsgericht Stuttgart HRB 223750

Geschäftsführer: Klaus A. Feldmann, Bradley C. Richardson, Thomas A. Burke,

Dresdner Bank AG, Stuttgart, Konto 907 453 300, BLZ 600 800 00

  

Seite 4 of 6

  

 

	
8.2
	
The time of vacation shall be determined by yourself in agreement with the Chief Executive Officer of Modine Manufacturing Company thereby taking into considera­tion your personal wishes and the in­terests of Modine.

Article 9 - Secrecy

	
9.1
	
You shall not disclose to any third party or use for your own purposes, any confidential technical or other business information related to Modine or its affiliates which has been disclosed to you, or which has otherwise become known to you. This applies in par­ticular to details regarding the busi­ness organization and the relation to clients, customers and suppliers as well as to the know-how of Modine.
You shall not divulge such information directly or indirectly, nor shall you make it accessible for third parties or allow such information to be transmitted to persons or companies who have not received a permission to obtain such information for purposes outside Modine, neither for yourself, nor for third parties. This obligation shall apply during the term of this Service Contract and thereafter.

	
9.2
	
Business records of any kind, including private notes con­cerning Modine’s affairs and activities, shall be carefully kept and shall be used only for business purposes. Cop­ies or extracts or duplicates of drawings, calculations, statistics and the like or of any other business records may only be made for business purposes.

	
9.3
	
Upon termination of this Ser­vice Contract, you shall return all busi­ness re­cords and copies thereof. You shall have no right of re­tention.

Article 10 - Term of Employment and Notice

	
10.1
	
This Service Contract follows the existing contract which expires March 31st, 2010. It begins on April 1, 2010, and is entered into for a fixed term of three (3) years (“Fixed Term”).

	
10.2
	
If the parties intend to extend this Service Agreement beyond the Fixed Term, then they agree to complete negotiations regarding the specific terms of such an extended Service Agreement at least 12 months prior to the end of the Fixed Term.

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Modine Holding GmbH, Arthur-B.-Modine-Straße, D-70794 Filderstadt

Phone (0711) 7094-0, Fax (0711) 7094-2297, Amtsgericht Stuttgart HRB 223750

Geschäftsführer: Klaus A. Feldmann, Bradley C. Richardson, Thomas A. Burke,

Dresdner Bank AG, Stuttgart, Konto 907 453 300, BLZ 600 800 00

  

Seite 5 of 6

  

 

 

 

	
10.3
	
Modine may release you from your work duties at any time during the fixed term so long as it is based on a justified interest of Modine.

	
10.4
	
Notice of extraordinary termination, effective imme­diately, may be given for compelling reasons.

	
10.5
	
Notice of termination must be given in writing.

Article 11 - Final Provisions

	
11.1
	
Any amendments of or additions of this Service Con­tract shall be made in writing in order to be ef­fec­tive.

	
11.2
	
This Service Contract and its interpretation are governed by German law.

	
11.3
	
This Service Contract represents the entire agreement and understanding of the parties. This Service Contract super­sedes and replaces all other previously issued con­tracts regarding the employment between the parties.  No written or verbal agreements outside this Service Contract have been made.

	
Date: 4.22.09
	
 
	  	
Date: 4.25.09
	
 

	  	  	  	  	  
	  	  	  	  	  
	
/s/ Thomas A. Burke
	  	  	
/s/ Klaus Feldmann
	  
	
Thomas A. Burke
	  	  	
Klaus Feldmann
	  
	
President & CEO
	  	  	
Regional VP - Europe
	  

Concurrence:

/s/ Gregory T. Troy

Gregory T. Troy

VP Human Resources and CHRO

Modine Manufacturing Company

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Modine Holding GmbH, Arthur-B.-Modine-Straße, D-70794 Filderstadt

Phone (0711) 7094-0, Fax (0711) 7094-2297, Amtsgericht Stuttgart HRB 223750

Geschäftsführer: Klaus A. Feldmann, Bradley C. Richardson, Thomas A. Burke,

Dresdner Bank AG, Stuttgart, Konto 907 453 300, BLZ 600 800 00

 

 

Seite 6 of 6ex10_2.htm

Exhibit 10.2

 

Credit Facility Agreement

Regarding a Revolving Credit Facility in the amount of

EUR 20.000.000,--

dated 15.05.2009

 

Modine Holding GmbH

Arthur-B.-Modine-Str.1

70794 Filderstadt

 

and

 

Modine Europe GmbH

Arthur-B.-Modine-Str.1

70794 Filderstadt

 

(each a “Borrower” and together the “Borrowers”)

 

and

 

Deutsche Bank AG

Filiale Deutschlandgeschäft

Marktgebiet Stuttgart 2

Theodor-Heuss-Straße 3

70174 Stuttgart

(the „Bank“)

 

enter into the following agreement (the „Credit Facility Agreement“) pursuant to which the Bank makes available a revolving credit facility to the Borrower (the “Credit Facility”)
on the basis of the Bank’s General Business Conditions (Allgemeine Geschäftsbedingungen); whereas this Credit Facility Agreement supercedes conflicting rules of the Allgemeine Geschäftsbedingungen:

  

  

  

§ 1 -
PARTIES

 

	
Borrowers:
	
Modine Holding GmbH, Arthur-B.-Modine-Str. 1, 70794 Filderstadt

Modine Europe GmbH, Arthur-B.-Modine-Str. 1, 70794 Filderstadt

	  	  
	
Bank:
	
Deutsche Bank AG Filiale Deutschlandgeschäft, Markgebiet Stuttgart 2, Theodor-Heuss-Straße 3, 70174 Stuttgart

 

§ 2 - CREDIT FACILITY:

 

	
(1)
	
Aggregate Facility Amount

 

The Bank makes available to the Borrowers a revolving cash credit facility (the “Facility”) in the amount of EUR 20.000.000,-- (in words: Euro twenty million) („Aggregate
Facility Amount“).

 

	
(2)
	
Term of the Facility

 

	
  
	
The Credit Facility is available until 14th May 2010. (“Term of the Facility”).

 

	
(3)
	
Purpose

 

The proceeds of the Facility shall be applied towards general corporate purposes including working capital requirements of the Modine Holding GmbH - Group only. The use of the Facility for acquisitions (Unternehmenskäufe, ganz oder in Teilen) irrespective of form, duration and amount will require the prior consent of the Bank.

 

	
(4)
	
Joint and Several Liability

 

	
  
	
The Credit Facility may be used by each Borrower independently, provided that the aggregate principal amount outstanding may not exceed the Aggregate Facility Amount. The obligations of each Borrower under the Credit Facility Agreement are joint and several (gesamtschuldnerische Haftung). Such joint and several liability will not end upon termination
of this Credit Facility Agreement (e.g. upon the expiration or cancellation) but only upon final settlement of all claims of the Bank including interest, fees and costs.

 

	
5)
	
Definitions

 

	
  
	
In this Credit Facility Agreement the following words and terms are defined as specified below:

 

	
  
	
„Banking Day“ means a day (other than  a Saturday or Sunday) on which banks are open for general business in Stuttgart.

 

	
  
	
„EONIA“ means the Euro OverNight Index Average
as determined by the European Central Bank for each TARGET-day. On days which are not a TARGET-day the EONIA as determined on the immediately preceding TARGET-day shall apply. If no EONIA is available on a TARGET-day the Bank will determine the applicable reference interest rate in accordance with section 315 German Civil Code (BGB) on the basis of the quotations for overnight funds in the European interbank market.

  

- 2 -

  

„EURIBOR“ means the interest rate per annum for deposits in Euro for the relevant interest period displayed on page 248 of the Telerate screen or a respective succeeding screen replacing page 248 for 11.00 a.m. Brussels time
two TARGET-days prior to the disbursement/the commencement of the respective interest period. If the EURIBOR cannot be determined two TARGET-days prior to the first interest period, the Bank and the Borrower will negotiate the interest rate for the relevant interest period. The Bank is not obligated to disburse the loan unless an agreement about the applicable interest rate has been reached. The Bank is released from its obligation to disburse the loan if an agreement about the applicable interest rate is not
reached within 15 days. If the EURIBOR for an interest period following the first interest period cannot be determined two TARGET-days prior to the commencement of the relevant interest period the Bank will determine interest for the relevant interest period based on interest rates customary in the European interbank market for the particular interest period plus the agreed margin.

 

"Financial Indebtedness" means any indebtedness for or in respect of (i) moneys borrowed, (ii) any letters of credit issued and acceptances accepted or issued, (iii) any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures,
loan stock or any similar instrument, (iv) lease contracts which would, in accordance with orders or statements of practice of the Federal Ministry of Finance or GAAP under the applicable law as the case may be, be treated as a finance lease, (v) receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis), (vi) any amount raised under any other transaction (including any forward sale or purchase agreement) having the commercial effect of a borrowing, (vii) any
derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the marked to market value shall be taken into account), (viii) any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by third parties unless both obligations are reported, the primary obligation on and the obligation of the counter-indemnity
on or below, the same balance sheet; and (ix) the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (i) through (viii) above, (x) a guarantee, surety or other obligation for any of the obligations listed in paragraphs (i) through (ix), and (xi) provisions for pension obligations.]

 

„Group / Group-level / Modine Holding GmbH - Group“ means all companies which are included in the annual consolidated financial statement of Modine Holding GmbH  (Companies included as per 29.02.2008: Modine Holding GmbH, Filderstadt; Modine
Europe GmbH, Filderstadt; Modine Pliezhausen GmbH, Pliezhausen, Modine Wackersdorf GmbH, Wackersdorf; Modine Grundstücksverwaltungs GmbH, Filderstadt; Modine Kirchentellinsfurt GmbH, Kirchentellinsfurt; Modine Tübingen GmbH, Tübingen; Modine Neuenkirchen GmbH, Neuenkirchen; Modine Uden B.V., Uden, Niederlande; Modine Pontevico s.r.l., Pontevico, Italien; Modine Hungaria Gép, Kft., Meszökövesd, Ungarn).

 

„TARGET-day“ is any day on which the Trans-European Automated Real Time Gross Settlement Express Transfer System is open for the settlement of payments in Euro.

  

- 3 -

  

§ 3 – UTILIZATION

 

	
(1)
	
Cash Credit Facility

 

Facility may be utilized by way of:

 

	
  
	
(a)
	
Cash Credit

 

Current account cash advances (“Cash Credit”) in Euro.

 

	
  
	
(b)
	
Fixed Interest Loans

 

Short-term loans with fixed interest rates with interest periods of 1, 2 or 3 months (“Fixed Interest Loans”) in Euro as agreed upon on a case by case basis.

 

	
  
	
(c)
	
Utilization in foreign currency

 

Cash Credit in foreign currency, namely in US Dollar or with prior consent of the Bank in every other currency which is freely available, convertible and transferable in the European interbank market.

 

	
(2)
	
Guarantee Facility

 

Facility may be utilized as follows:

 

	
  
	
(a)
	
Guarantees

 

Facility may be utilized as agreed upon a case by case basis through sureties (Bürgschaften), sureties upon first demand or guarantees (including bonds and standby letters of credit) issued upon instruction of the Borrower (“Guarantees”)
in EUR and if individually agreed upon also in foreign currency. Unless otherwise agreed on a case by case basis, the instructions to issue the Guarantees shall be given using the wording in each case prepared by the Bank.

 

	
  
	
(b)
	
Special Conditions for Guarantee Business

 

In addition, the Special Conditions for Guarantee Business of the Bank shall apply, which take priority over the Bank’s General Business Conditions.

 

	
  
	
(c)
	
Conditional Acceptance

 

Before accepting an instruction to issue a Guarantee, the Bank is entitled to consider such instruction with respect to its feasibility under legal, economical and policy aspects and to refuse acceptance, as the case may be.

 

§ 4 – REPAYMENT

 

	
(1)
	
The Borrower will repay all amounts outstanding in full at the latest at the expiration of the Credit Facility Agreement unless otherwise agreed.

 

	
(2)
	
If after the termination of the Credit Facility Guarantees are outstanding and the collateral provided to the Bank does not cover the full amount of any risk resulting from such Guarantees, the Borrower will procure that the Bank be released within a reasonable period of time from its obligations under such Guarantees. The Borrower is entitled to provide the Bank instead with security by pledge of an amount in cash
in the relevant currency of the Guarantee. Section 10 of the Conditions for Guarantee Business remains unaffected.

  

- 4 -

  

§ 5 – INTEREST / FEES

 

	
(1)
	
General

 

	
  
	
(a)
	
Authorization for debiting

 

	
  
	
The Bank is entitled to debit due interest, commissions, expenses, charges and fees to the account no. 240/1180108 00 of Borrower Modine Holding GmbH or the account no. 240/ 1180926 00  of Borrower Modine Europe GmbH unless otherwise agreed.

 

(2)

 

	
  
	
(a)
	
Interest rate for current account cash advances

 

The rate of interest for cash advances will be calculated as follows:

 

The rate of interest per annum for current account cash advances in Euro for each day is the sum of the EONIA applicable for such day and the margin.

 

The margin is 2,5 % p.a. until further notice.

 

Interest will be calculated on the basis actual/360. Amounts will be debited monthly in arrears and upon expiration of the Credit Facility Agreement.

 

	
  
	
 (b)
	
Interest for EURIBOR-Fixed Interest Loans

 

	
  
	
The rate of interest for Fixed Interest Loans in Euro is the percentage rate per annum which is the sum of the applicable EURIBOR for the agreed interest period and the margin.

 

	
  
	
The margin is 2,5 % p.a. until further notice

 

	
  
	
Interest will be calculated by calendar days on the basis actual / 360. Interest is due at the end of the respective interest period.

 

	
  
	
For Fixed Loans the agreed margin upon conclusion of such a transaction shall not be affected by any later change of the margin.

 

	
  
	
(c)
	
Utilization in foreign currency

 

The interest rate for utilizations in foreign currency and its payment will be agreed upon in advance on a case by case basis.

 

	
  
	
(d)
	
Commission on Guarantees and Guarantee Fees  The commissions and fees on each Guarantee will be determined between the parties in separate agreements.

 

	 	
 (e)
	
Remuneration for special services in connection with Guarantees

 

The Bank is entitled to further remuneration for services rendered which exceed the standard handling of a Guarantee (from the instruction to issue the Guarantee until its discharge) (e.g. wordings which require special scrutiny or in case of contentious procedures). The remuneration will be calculated by the Bank based on the actual expenditure
of time and manpower.

  

- 5 -

  

	
(3)
	
Additional Fees

 

Additional fees will be regulated in a separate fee-letter.

 

§ 6 – COLLATERAL

 

In addition to existing security, if applicable, the following collateral, shall be provided by the Borrower:

 

	
(1)
	
The Credit Facility has to be fully collateralized by assets of the group. Details, especially regarding the purpose of the collateral, are subject to separate agreements, which have been or will be entered into, respectively.

 

§ 7 – CONDITIONS OF UTILIZATION

 

The Borrower may utilize this Credit Facility once and as long as the following Conditions Precedent are fulfilled:

 

	
(1)
	
Up-to-date certified (beglaubigt) extract from the Commercial Register (Handelsregisterauszug), its articles of association (Satzung), certified by the commercial register as of a recent date, or
partnership agreement (Gesellschaftsvertrag), copies of any by-laws as well as a list of shareholders (Gesellschafterliste) (if applicable), and

 

	
(2)
	
The agreed collateral is in full force and effect, and

 

	
(3)
	
No event of default is outstanding which constitutes or, with the expiry of a grace period and/or the giving of a notice would constitute the right to terminate the Credit Facility Agreement for reasonable cause, and

 

	
(4)
	
The Borrower is not in default with any obligation vis-à-vis the Bank, and

 

	
(5)
	
Legal opinion covering the legal validity and enforceability of the “Commitment to limit intercompany claims and obligations („Abschottungserklärung“) and to suspend dividend payments in the event of an equity deterioration („Ausschüttungsregelung“) which constitutes Attachment 1 to
this Credit Facility Agreement.

 

The Bank may allow utilization without the above conditions being satisfied. The obligation of the Borrower to comply with the conditions of utilization remains unaffected hereby unless the Bank has definitely and expressly waived compliance with certain conditions in writing.

  

- 6 -

  

§ 8 – General Undertakings

 

Until all liabilities under this Credit Facility Agreement have been fully and finally discharged the Borrower undertakes the following obligations:

 

	
(1)
	
Information

 

	
  
	
The Borrower undertakes to keep the Bank always informed of its current economic condition and, as the case may be, the current economic condition of the Modine Holding GmbH - Group.

 

	
  
	
For this purpose the Borrower will, in particular, immediately upon completion and in any event within 6 months after the end of each of its financial years provide the Bank with

 

	
  
	
-
	
an original of its audited financial statement, at least with the content required by law and including appendix and management report (local GAAP);

 

	
  
	
-
	
the audited consolidated financial statement together with the group management report of the Borrower’s group of companies including the respective auditor’s reports (local GAAP);

 

	
  
	
-
	
an annual budget-plan (US GAAP) for the Modine Holding GmbH – Group (plus other entities under the operational control of the Borrower) at latest with the beginning of each fiscal year

 

	
  
	
Should the financial statement not need to be audited, the executed copy to be submitted to the Bank has to be duly signed by the duly authorized managing directors.

 

	
  
	
Furthermore, the Borrower will provide the Bank with quarterly business assessments including a forecast until year-end; all such reporting shall be based on US-GAAP accounting methods and Borrower`s usual reporting practices.

 

	
  
	
The Borrower will provide upon the Bank’s demand further information and documents which give insight into its economic condition.

 

	
  
	
The Borrower will inform the Bank immediately in case material adverse changes or divergences in regard to the information given or documents handed over (including plan figures and projections) occur or in case it becomes apparent or there is evidence indicating that information given or documents handed over are incomplete or incorrect.

 

	
(2)
	
Purpose

 

	
  
	
As far as the Facility has been assigned to a specified purpose, the Borrower undertakes to provide the Bank upon its demand with proof that the Facility has been used for the agreed purpose by furnishing appropriate documents.

 

	
  
	
The Bank is not obligated to the Borrower to verify that the Credit Facility has been used for the agreed purpose.

  

- 7 -

  

	
(3)
	
Ownership / Change of control

 

The parties to this agreement agree that the current ownership in the Borrower represents an essential basis for the Bank’s preparedness to grant the Facility and any utilization thereunder.

 

If a change in the current ownership occurs, the parties will negotiate,  prior to the occurrence of such a change, an agreement satisfactory to both sides on the continuation of this Credit Facility Agreement on changed terms and conditions, e.g. in respect of interest rates, collateral, or other agreements.

 

	
(4)
	
Other Undertakings

 

	
  
	
During the term of the Credit Facility Agreement Modine Holding GmbH will inform the Bank immediately if it is imminent that the Borrower`s equity (on Group level) declines below an amount of EUR 130.000.000,--. According to a separate Commitment –“Abschottungserklärung” and “Ausschüttungsregelung”- signed by Modine Manufacturing Company Racine, USA), in such an event any direct
or indirect distribution of retained earnings or profits to the parent company shall be suspended until the equity has achieved again an amount of EUR 130.000.000,--.

 

	
  
	
All parties agree that an equity amount of EUR 100.000.000,-- of the Borrower is essential for the granting and drawing of the Credit Facility. If it is imminent that the equity will decline below this amount all parties together will find a suitable solution regarding the continuation of the Credit Facility Agreement.

 

	
(5)
	
Intercompany Business

 

The Borrowers will only enter into agreements with Modine Companies outside of the Modine Holding GmbH – Group under terms and conditions customary in the market and on arms-lengths basis. They will only act on the basis of and in accordance with such agreements. They will document and file all documents concerning agreements, deliveries,
claims, and settlements / set offs as usual in an accurate ordinary business. However, nothing in this paragraph shall preclude the Borrower from entering into an agreement regarding an acquisition of Modine Austria Holding GmbH or a part thereof from Modine Manufacturing Company or regarding a merger of Modine Holding GmbH with Modine Climate Systems GmbH (Verschmelzung der Modine Climate Systems GmbH auf die  Modine Holding GmbH).

 

	
(6)
	
Credit agreements with other financial institutions

 

	
  
	
The Borrower will inform the Bank about future credit agreements or about material changes in existing credit agreements between the Borrower and other financial institutions (e.g. increases, terminations or demands for additional collateral) in advance if they are under negotiation and otherwise immediately upon their effectiveness. This shall not apply to any negotiations regarding a substitution of this Facility.

 

	
(7)
	
Information and cooperation regarding credit by way of guarantee

 

	
  
	
The Borrower will, upon request, provide the Bank for each Guarantee issued with all information and appropriate documentation on the claim secured by the Guarantee, and will, in case a demand under the Guarantee is imminent, furnish the Bank with all information and documentation the Bank deems necessary in order to verify the validity of such demand, give the Bank all reasonable support in this respect and, for
this purpose, nominate and place at the Bank’s disposal qualified and competent employees.

  

- 8 -

  

§ 9 – TERMINATION FOR REASONABLE CAUSE WITHOUT NOTICE

 

A reasonable cause which entitles the Bank to terminate this Credit Facility Agreement without notice according to no. 19 section 3 of the General Business Conditions is also and especially given if:

 

	
(1)
	
the Borrower does not comply with the General Undertakings or other material obligations under this Credit Facility Agreement or under any collateral agreement entered into in connection with this Credit Facility Agreement, or

 

	
(2)
	
a change of ownership occurs and the parties do not reach an agreement on the continuation of the Credit Facility Agreement on changed terms and conditions, e.g. in respect of interest rate, collateral, or other agreements, in due time, or

 

	
(3)
	
any other Financial Indebtedness of the Borrower is not paid when due or is declared, or capable of being declared, due and payable by any creditor(s) thereof prior to its agreed maturity by reasons of the occurrence of an event of default (howsoever described) and the aggregate of all such Financial Indebtedness exceeds an amount of EURO 1.000.000,-- or the equivalent thereof in any other currency or currencies
(“Cross Default”).

 

§ 10 – MISCELANEOUS

 

	
(1)
	
Hedges

 

If the Bank and the Borrower have entered or will enter into hedging transactions covering interest or currency risk which may also arise from this Credit Facility Agreement, a termination of this Credit Facility Agreement will have no effect on the validity and continuation of such hedging transactions. Nothing in this clause shall oblige
the Bank to enter into hedging transactions with the Borrower.

 

	
(2)
	
Foreign exchange risk

 

	
  
	
Any utilization in foreign currency must be repaid in the same currency, irrespective of changes in the exchange rate which may have taken place in the meantime. Amounts outstanding in foreign currency will be counted against the Aggregate Facility Amount at any time on the basis of the respective current exchange rate to the Euro, as determined and published by the Bank on the Internet around 13:00 Frankfurt time
of every trading day.

 

	
  
	
If fluctuations in the exchange rate result in the total amounts outstanding exceeding the Aggregate Facility Amount the Borrower will reduce this overdraft immediately – by the expiry date of the agreed interest period at the latest or procure that the Bank be released without delay from its obligations under the relevant Guarantees. In the meantime, the Bank may demand security by pledge of an amount in cash
and in Euro, namely in the amount the amounts outstanding exceed the Aggregate Facility Amount.

  

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(3)
	
Transfer of the Credit Risk to third parties with disclosure of information

 

The Bank is entitled to transfer the economic risk of this credit facility, in whole or in part, to third parties or to use its claims resulting from this credit facility for refinancing purposes (inter alia by sub-participation, transfer or pledge of the claims including the respective collateral) and to provide the relevant information
to the respective third parties. Albeit, the Bank will remain the Borrower ́s contractual counterparty in accordance with the terms and provisions of this Credit Facility Agreement.

 

The Bank is also entitled to provide the relevant information to persons who have to be involved in the execution of the transfer due to technical or legal reasons and who are obligated, contractually or by law or by professional obligation to confidentiality, to keep all information received confidential, e.g. auditors, and to credit
rating agencies.

 

Third party within the above meaning can be any member of the European system of central banks, any financial institution, any finance company, any insurance company, any pension fund, any investment company or any special purpose vehicle for securitization purposes.

 

	
(4)
	
Choice of Law and Jurisdiction

 

This agreement and all rights or obligations arising hereunder shall in all respects be governed by, and construed in accordance with, the laws of the Federal Republic of Germany.

 

	
  
	
The Borrower hereby submits to the jurisdiction of the competent courts of Stuttgart, Germany, and, at the option of the Bank, of the competent courts of its domicile.

 

	
(5)
	
Amendments

 

	
  
	
Any amendment to this Credit Facility Agreement is required to be made in writing.

 

	
(6)
	
Expiration Date/ Effectiveness

 

	
  
	
(a)
	
The offer of the Bank to enter into this Credit Facility Agreement expires on 15.06.2009 (“Expiration Date”).

 

	 	
(b)
	
This Credit Facility Agreement becomes effective upon receipt by the Bank of this Credit Facility Agreement on or prior to the Expiration Date duly signed by all parties.

 

	
(7)
	
Non-conflict with other obligations

 

	
  
	
The borrower confirms, that the entry into this Credit Facility Agreement and performance by it, and the transactions contemplated by it, do not and will not conflict with (i) any law or regulation applicable to it, (ii) its or any of its subsidiaries ́constitutional documents or (iii) any agreement or instrument binding upon it or any of its subsidiaries or any of its subsidiaries ́ assets.

 

	
(8)
	
Severability Clause

 

	
  
	
Should any provision of this Agreement be unenforceable or invalid, the other provisions hereof shall remain in full force and effect.

  

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	 Declaration according to Section 8 German Money Laundering Law (Geldwäschegesetz)
 

The Borrower acts for its own account.

 

The Borrower is obligated to inform the Bank without delay in writing of any change of the beneficial owner indication its name and address.

 

This Credit Facility Agreement will be cited under the date first above written.

 

Deutsche Bank AG

Filiale Deutschlandgeschäft

 

	
Stuttgart, 5.15.09
	
/s/ Groß

	
Place, Date
	  
	  	  
	
Stuttgart, 5.15.09
	
/s/ Forster

	  	  
	  	  
	
Modine Holding GmbH
	  
	  	  
	
Filderstadt, 5.15.09
	
/s/ Feldmann

	
Place, Date
	  
	  	  
	
Modine Europe GmbH
	  
	  	  
	
Filderstadt, 5.15.09
	
/s/ F. Michel and /s/ T. Jadgt

	
Place, Date
	  

 

  

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Attachment 1

 

Commitment to limit intercompany claims and obligations

(„Abschottungserklärung“) and to suspend dividend payments in the event of an equity

deterioration („Ausschüttungsregelung“)

 

Modine Manufacturing Company (Racine, USA) is sole shareholder with:

 

	
  
	
·
	
100% of shares by Modine Holding GmbH.

 

	
  
	
I.
	
We will only enter into agreements with the Borrower or other companies of the Modine Holding GmbH – Group under terms and conditions customary in the market and on arms-lengths basis. We will only act on the basis of and in accordance with such agreements. We will prepare and maintain all documents concerning agreements, deliveries, claims, and settlements / set offs as usual in an accurate ordinary business.

 

	
  
	
II.
	
In the name of Modine Manufacturing Company and all Associated Companies we will ensure that Modine Holding GmbH will not assume liabilities, surrender securities or warrant funds or medium- or long term loans to a direct or indirect parent company or any Associated company with the exception of the following transactions: (1) current loan of € 14.500.000,-- to Modine UK Dollar Limited, Great Britain; (2) existing
loan of Modine Climate Systems GmbH to Modine Holding GmbH of ca. € 25.000.000,--; (3) payments regarding royalties up to 2 % p.a. based on the group turnover by Modine Holding GmbH; (4) cash-pool debt of Modine Holding Austria GmbH to Modine Holding GmbH; (5) or any other fulfilment of an agreement or arrangement which was concluded in line with number I.

 

	
  
	
III.
	
According to the balance sheet report (local GAAP) Modine Holding GmbH as of 29th February 2008 (Konzernabschluss zum 29. Februar 2008) the equity amounts to T€ 159.141 [thereof capital stock (gezeichnetes Kapital): T€ 2.045; capital surplus (Kapitalrücklage): T€ 23.785; retained earnings (Gewinnvortrag; Jahresüberschuss):
T€  135.211; currency value adjustments (Ausgleichsposten aus Währungsumrechnung): T€ - 1.899]. In the event and for the time the equity of Borrower (on Modine Holding GmbH – Group level) falls below € 130.000.000,-- any direct or indirect distribution of retained earnings or profits to the parent company shall be suspended.

 

	
  
	
IV.
	
We have taken notice of and approved the Credit Facility Agreement of Modine Holding GmbH and Modine Europe GmbH dated 15.05.2009 and commit ourselves, not to make  resolutions and not to give any instructions to the borrower, which might cause a breach of this agreement.

 

	
  
	
V.
	
We confirm, that the entry into this Commitment and performance by it, and the transactions contemplated by it, do not and will not conflict with (i) any law or regulation applicable to it, (ii) our or any of our subsidiaries ́constitutional documents or (iii) any of our agreements or instruments binding upon it or any Modine company of the Modine Holding GmbH – Group or any of the Modine Holding GmbH –
Group`s assets.

  

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In the event of any conflict between the English text and the text in any other language, the English text shall prevail, except that where a German translation of a legal term appears in such text, the German translation shall prevail.

 

This Agreement shall be governed by and construed in accordance with the laws of the Federal Republic of Germany.

 

Modine Manufacturing Company hereby irrevocably appoints Modine Holding GmbH, Filderstadt, Germany,as its agent for service of process or other legal summons in connection with any action or proceedings in Germany arising under this Commitment. Modine Manufacturing Company irrevocably waives any objection which it may now or hereafter
have that such proceedings have been brought in an inconvenient forum. The place of jurisdiction for all Parties shall be Stuttgart.

 

Modine Manufacturing Company

 

	
May 15, 2009
	
/s/ Thomas A. Burke

	  	
Thomas A. Burke, President and CEO

 

 

- 13 -

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