Document:

exv4wh

Exhibit 4h

AMENDMENT NO. 5

Dated as of March 4, 2011

to

CREDIT AGREEMENT

Dated as of November 7, 2007

          THIS AMENDMENT NO. 5 (“Amendment”) is made as of March 4, 2011 by and among Brush
Engineered Materials Inc. (the “Company”), the Foreign Subsidiary Borrowers from time to
time party thereto (together with the Company, the “Borrowers”), the financial institutions
listed on the signature pages hereof and JPMorgan Chase Bank, National Association, as
Administrative Agent (the “Administrative Agent”), under that certain Credit Agreement
dated as of November 7, 2007 by and among the Borrowers, the Lenders and the Administrative Agent
(as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”).
Capitalized terms used herein and not otherwise defined herein shall have the respective meanings
given to them in the Credit Agreement.

          WHEREAS, the Company has requested that the Lenders and the Administrative Agent agree to
certain amendments to the Credit Agreement;

          WHEREAS, the Lenders party hereto and the Administrative Agent have agreed to such amendments
on the terms and conditions set forth herein;

          NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Borrowers, the Lenders party hereto and the Administrative Agent have
agreed to enter into this Amendment.

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

          (a) The definition of “Consolidated Funded Debt” set forth in Article 1 of the
Credit Agreement is amended to delete the reference to “$270,000,000” therein and to substitute
“$370,000,000” therefor.

          (b) The definition of “Permitted Precious Metals Agreements” set forth in Article
1 of the Credit Agreement is amended to delete the reference to “$270,000,000” therein and to
substitute “$370,000,000” therefor.

          (c) Clause (h) of Section 6.01 of the Credit Agreement is amended to delete the
reference to “$270,000,000” therein and to substitute “$370,000,000” therefor.

          2. Conditions of Effectiveness. The effectiveness of this Amendment is
subject to the conditions precedent that (a) the Administrative Agent shall have received (i)
counterparts of this Amendment duly executed by the Borrowers, the Required Lenders and the
Administrative Agent and (ii) counterparts of the Consent and Reaffirmation attached hereto as
Exhibit A duly executed by the

 

 

Subsidiary Guarantors and (b) the Company shall have paid, to the extent invoiced, all
out-of-pocket expenses of the Administrative Agent (including reasonable attorneys’ fees and
expenses) in connection with this Amendment and the other Loan Documents.

          3. Representations and Warranties of the Borrowers. Each Borrower hereby
represents and warrants as follows:

          (a) This Amendment and the Credit Agreement, as amended hereby, constitute legal, valid and
binding obligations of such Borrower and are enforceable against such Borrower in accordance with
their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally and subject to general principles of equity, regardless of
whether considered in a proceeding in equity or at law.

          (b) As of the date hereof and giving effect to the terms of this Amendment, (i) no Default
shall have occurred and be continuing and (ii) the representations and warranties of the Borrowers
set forth in the Credit Agreement, as amended hereby, are true and correct as of the date hereof.

          4. Reference to and Effect on the Credit Agreement.

          (a) Upon the effectiveness hereof, each reference to the Credit Agreement in the Credit
Agreement or any other Loan Document shall mean and be a reference to the Credit Agreement as
amended hereby.

          (b) Except as specifically amended above, the Credit Agreement and all other documents,
instruments and agreements executed and/or delivered in connection therewith shall remain in full
force and effect and are hereby ratified and confirmed.

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

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

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

          7. Counterparts. This Amendment may be executed by one or more of the
parties hereto on any number of separate counterparts, and all of said counterparts taken together
shall be deemed to constitute one and the same instrument. Signatures delivered by facsimile or
PDF shall have the same force and effect as manual signatures delivered in person.

[Signature Pages Follow]

2

 

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

	 	 	 	 	 
	 	BRUSH ENGINEERED MATERIALS INC., as the Company

 	 
	 	By:  	/s/ Michael C. Hasychak
 	 
	 	 	Name:  	Michael C. Hasychak 	 
	 	 	Title:  	Vice President, Treasurer & Secretary 	 
	 
	 	WILLIAMS ADVANCED MATERIALS

(NETHERLANDS) B.V., as the Dutch Borrower

 	 
	 	By:  	/s/ James P. Marrotte
 	 
	 	 	Name:  	James P. Marrotte 	 
	 	 	Title:  	Class A Director 	 
	 	 	 
	 	By:  	                                      /s/ Cynthia H. Friedman
 	 
	 	 	Name:  	Cynthia H. Friedman 	 
	 	 	Title:  	Class A Director 	 
	 	 	 
	 	By:  	                                      /s/ C. J. Horstmanshof
 	 
	 	 	Name:  	C. J. Horstmanshof 	 
	 	 	Title:  	Class B Director 	 
	 

Signature Page to Amendment No. 5

Brush Engineered Materials Inc. et al

Credit Agreement dated as of November 7, 2007

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, individually
as a Lender, as Swingline Lender, as Issuing Bank and as
Administrative Agent

 	 
	 	By:  	/s/ William P. McGreehan
 	 
	 	 	Name:  	William P. McGreehan 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Amendment No. 5

Brush Engineered Materials Inc. et al

Credit Agreement dated as of November 7, 2007

 

 

	 	 	 	 	 
	 	FIFTH THIRD BANK, individually as a Lender and as

Co-Syndication Agent

 	 
	 	By:  	/s/ Martin H. McGinty
 	 
	 	 	Name:  	Martin H. McGinty 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 5

Brush Engineered Materials Inc. et al

Credit Agreement dated as of November 7, 2007

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., individually as a Lender and as
Co-Syndication Agent

 	 
	 	By:  	/s/ Sandra Guerrieri
 	 
	 	 	Name:  	Sandra Guerrieri 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 5

Brush Engineered Materials Inc. et al

Credit Agreement dated as of November 7, 2007

 

 

	 	 	 	 	 
	 	RBS CITIZENS, NATIONAL ASSOCIATION, individually as a
Lender and as Co-Documentation Agent

 	 
	 	By:  	/s/ Patrick F. Dunphy
 	 
	 	 	Name:  	Patrick F. Dunphy 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Amendment No. 5

Brush Engineered Materials Inc. et al

Credit Agreement dated as of November 7, 2007

 

 

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION, individually as a Lender
and as Co-Documentation Agent

 	 
	 	By:  	/s/ Marcel Fournier
 	 
	 	 	Name:  	Marcel Fournier 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 5

Brush Engineered Materials Inc. et al

Credit Agreement dated as of November 7, 2007

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,
as a Lender

 	 
	 	By:  	/s/ Jason W. Sutton
 	 
	 	 	Name:  	Jason W. Sutton 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 5

Brush Engineered Materials Inc. et al

Credit Agreement dated as of November 7, 2007

 

 

EXHIBIT A

CONSENT AND REAFFIRMATION

          Each of the undersigned hereby acknowledges receipt of a copy of the foregoing Amendment No. 5
to the Credit Agreement dated as of November 7, 2007 (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”) by and among
Brush Engineered Materials Inc. (the “Company”), the Foreign Subsidiary Borrowers from time
to time party thereto (together with the Company, the “Borrowers”), the financial
institutions from time to time party thereto (the “Lenders”) and JPMorgan Chase Bank,
National Association, as Administrative Agent (the “Administrative Agent”), which Amendment
No. 5 is dated as of March 4, 2011 (the “Amendment”). Capitalized terms used in this
Consent and Reaffirmation and not defined herein shall have the meanings given to them in the
Credit Agreement. Without in any way establishing a course of dealing by the Administrative Agent
or any Lender, each of the undersigned consents to the Amendment and reaffirms the terms and
conditions of the Subsidiary Guaranty, the Security Agreement and any other Loan Document executed
by it and acknowledges and agrees that such agreements and each and every such Loan Document
executed by the undersigned in connection with the Credit Agreement remains in full force and
effect and is hereby reaffirmed, ratified and confirmed. All references to the Credit Agreement
contained in the above-referenced documents shall be a reference to the Credit Agreement as so
modified by the Amendment and as the same may from time to time hereafter be amended, modified or
restated.

Dated: March 4, 2011

[Signature Page Follows]

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	BRUSH ENGINEERED MATERIALS INC.	 	 	 	BRUSH WELLMAN INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Michael C. Hasychak	 	 	 	By:	 	/s/ Michael C. Hasychak	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Michael C. Hasychak
	 	 	 	 	 	Name:
	 	Michael C. Hasychak	 	 
	 

	 	Title:
	 	Vice President, Treasurer & Secretary
	 	 	 	 	 	Title:
	 	Vice President, Treasurer & Secretary
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BRUSH RESOURCES INC.	 	 	 	WILLIAMS ADVANCED MATERIALS INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Michael C. Hasychak	 	 	 	By:	 	/s/ Michael C. Hasychak	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Michael C. Hasychak
	 	 	 	 	 	Name:
	 	Michael C. Hasychak	 	 
	 

	 	Title:
	 	Vice President, Treasurer & Secretary
	 	 	 	 	 	Title:
	 	Vice President, Treasurer & Secretary	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TECHNICAL MATERIALS, INC.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Michael C. Hasychak	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Michael C. Hasychak	 	 	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President, Treasurer & Secretary	 	 	 	 	 	 	 	 	 	 

Signature Page to Consent and Reaffirmation to Amendment No. 5

Brush Engineered Materials Inc. et al

Credit Agreement dated as of November 7, 2007exv10wh

Exhibit 10h

BRUSH ENGINEERED MATERIALS INC. and SUBSIDIARIES

MANAGEMENT PERFORMANCE COMPENSATION PLAN

2011 PLAN YEAR

(as adopted February, 2011)

I. INTRODUCTION

The Management Performance Compensation Plan (“the Plan”) provides incentive compensation to
eligible employees based principally on annual financial performance. Plan awards have a
significant portion based on Company and/or Business Unit performance (“financial performance”), a
component that recognizes individual and combined contributions toward personal/team objectives
(“Personal/Team Performance”), and, for some participants, a “relative” company peer group
financial measure.

II. DEFINITIONS

Plan Year:

The fiscal year for which the Company’s Business Unit performance, and any Plan awards are
calculated.

Business Unit Performance:

The Executive Staff will designate the Business Units/Subsidiaries that are eligible for
participation in the Plan for the Plan Year.

Each business unit has defined financial performance measures, which have in turn been approved by
the Compensation Committee of the Board and/or the Executive Staff. These measures are expressed
as a Minimum, Target and Maximum. Plan Awards include a “Financial Performance Component” based on
the Business Unit performance.

Personal/Team Performance:

An assessment is made of an individual’s achievements and his/her contributions to work/project
teams during the Plan Year. This assessment is expressed as a percentage of base compensation.
The “Personal/Team Performance” component is distinct from the “Financial Performance” component.

Operating Profit (“OP”):

Profit or loss, before interest and taxes, and for domestic and international operations.
Operating Profit will include any special write-off or accounting charge and accrued performance or
incentive compensation.

Peer Group Return on Invested Capital (ROIC)

The publicly available return on invested capital change for those peer group companies included in
the Company’s self-declared peer group in comparison to the Company. Due to the delays in reported
information, the measurement period will include the fourth quarter of the prior year as well as
the first three quarters of the current plan year. This “relative” company peer group financial
measure is an independent measure and is not influenced by any other financial performance measure
set by the Company for the plan year.

 

 

Management Performance Compensation Plan

Page 2 of 4

Working Capital:

This is a monthly calculation based on Business Unit/Subsidiary worldwide accounts receivable and
FIFO inventory divided by annualized worldwide sales (current month plus prior two months
annualized). The result being working capital as a percent of sales. At the end of the year the
average of the twelve monthly, annualized sales numbers and twelve monthly working capital numbers
(A/R and inventory) are calculated and a percent to sales is calculated based on the averages for
the twelve periods. This twelve-month average is the basis for the incentive metric for working
capital management.

Other Metrics:

From time to time, other metrics will be adopted that are aligned with a Business Unit’s strategy
and market challenges. These metrics will be defined and tracked by the corporate accounting
department, subject to approval by the Executive Staff.

Base Compensation:

The participant’s annual base salary in effect on September 30 of the Plan Year.

III. PARTICIPATION

At the beginning of the Plan Year, the Executive Staff will identify exempt, salaried employees
whose responsibilities affect progress on critical issues facing the Company. Those individuals
selected by the Executive Staff will be notified of their participation in the Plan, their
performance compensation grade and performance compensation opportunity, and their applicable
Business Unit designation.

Following the beginning of the Plan Year, the Executive Staff may admit new hires or individuals
who are promoted or assigned additional and significant responsibilities. The Executive Staff may
also alter performance compensation grade assignments to reflect changed responsibilities of
participants during the Plan Year.

An employee who replaces or otherwise assumes the job functions or role of an employee, does not
automatically assume the plan participation that had applied to the incumbent. Rather,
participation by the new or replacing employee must be individually considered and approved.

Employees who are designated as participants before April 1 of the Plan year are eligible for full
participation. Participants who are newly employed on or after April 1 and before July 1 are
eligible for half of any award available for Personal/Team and Financial (Business Unit and/or
Company) performance.

Participants who transfer from the Exempt Salaried Performance Compensation Plan to the Management
Performance Compensation Plan on or after April 1 and before July 1 are eligible for full
participation in the Personal/Team performance component and for half participation in the
Financial (Business Unit and/or Company) performance component. Their eligibility under the Exempt
Salaried Performance Compensation Plan ceases for the Plan Year.

Changes in performance compensation grade assignments will result in prorated participation in
awards.

 

 

Management Performance Compensation Plan

Page  3 of 4

The eligibility of employees hired or with changed job responsibilities after June 30 will not be
considered until a possible, subsequent Plan Year.

Normally, employees who are participants in any other annual incentive, commission or performance
compensation plan are not eligible. The Executive Staff may consider prorated participation under
special circumstances.

With two exceptions, participants must be employed on the last day of the Plan Year in order to be
eligible for any performance compensation award. For a participant who becomes eligible for and
who elects a severance option under the Chronic Beryllium Disease Policy as amended, any award
under the Plan will be prorated to the beginning of the month after the employee exercises the
severance option. The second exception pertains to retirement under a Company pension plan, in
which case, any award will be prorated to the beginning of the month following the employee’s
retirement date. In no event will a prorated award be earned where the proration percent is 1/3 or
less.

Eligible employees who have been on a leave of absence in excess of 13 weeks during the plan year
will have their award reduced on a pro-rata basis to reflect their actual contribution.

IV. PERFORMANCE COMPENSATION OPPORTUNITY FOR FINANCIAL PERFORMANCE

The Compensation Committee of the Board of Directors will establish Minimum, Target and Maximum
levels for each financial measurement.

The Executive Staff will assign participants to a specific Business Unit/Subsidiary for the
performance compensation opportunity for Financial Performance.

Below is a summary of the performance compensation opportunity for the Plan Year.

	 	 	 	 	 
	Grade	 	Financial Component	 	Personal Team
	D 

E
	 	20%

10%
	 	0-14%

0-14%

Opportunity for participants in Grades A, B and C will be individualized as determined by the
Compensation Committee or the Executive Staff.

The “Financial Performance” component of awards (Business Unit, Company, sub-unit, and/or other
measurement), will begin once the Minimum level has been attained for Operating Profit. None of
the other financial components will result in an award unless the Minimum level for Operating
Profit has been met. Performance, which reaches or exceeds the Maximum value of the measure, will
result in awards at 200 percent of Target opportunity. Award amounts for levels of achievement
between Minimum and Target and between Target and Maximum will be prorated according to the level
of achievement.

Financial awards will be prorated for transfers between units (Business Unit and/or Company)
according to the length of service by months in each unit during the Plan Year.

 

 

Management Performance Compensation Plan

Page 4 of 4

V. PERFORMANCE COMPENSATION OPPORTUNITY for PERSONAL/TEAM PERFORMANCE

An Operating Profit “threshold” may be established, which must be achieved in order to make
available a bonus opportunity to recognize the Personal/Team performance. If established, meeting
this threshold would result in a Personal/Team opportunity payout. This threshold can be different
than the Minimum Operating Profit level necessary to create a Financial Performance opportunity.

No awards for Personal/Team performance will be paid if a Threshold is established and is not met.

The “total pool” for Personal/Team performance of participants would typically average about 10
percent of the base compensation of participants, if the Operating Profit metric meets or exceeds
Target. Performance below Target could result in the total pool being reduced to a lesser amount.
The Business Unit Executive and the Executive Staff will decide allocation of the pool among
eligible participants based on their performance throughout the plan year relative to achieving
established goals and objectives.

VI. PAYMENT

Distribution of any performance compensation awards under the Plan to participants will be no later
than March 15 of the year following the Plan Year.

VIII. GENERAL PROVISIONS

The Executive Staff has authority to make administrative decisions in the interests of the Plan.

The Board of Directors, through its Compensation Committee, shall have final and conclusive
authority for interpretation, application, and possible modification of this Plan or established
targets. The Board of Directors reserves the right to amend or terminate the Plan at any time.
Subject to the preceding sentences, any determination by the Company’s independent accountants
shall be final and conclusive as it relates to the calculation of financial results.

This Plan is not a contract of employment.

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