Document:

exv10w1

Exhibit 10.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors of

Federal Life Insurance Company (Mutual):

We consent
to the use in the Post-Effective Amendment No. 2 to the Registration Statement on Form N-4 (No. 333-147464)
of our report dated February
 25, 2009 with respect to the statement of assets and liabilities of Federal Life Variable Annuity
Account–A (comprising, respectively, Vanguard Wellesly Income Fund, Vanguard Long-Term Corporate
Fund, Vanguard Windsor Fund, Vanguard Wellington Fund, Vanguard Morgan Growth Fund and Vanguard
Prime Money Market Fund) as of December 31, 2008, and the related statement of operations and
changes in net assets for each of the two years in the period then
ended, appearing in the Statement of Additional
Information, which is part of the Registration Statement, and to the reference to our firm under
the heading “Experts” in the Statement of Additional Information. Our audit report states that,
in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective
funds constituting the Federal Life Variable Annuity Account–A as of
December 31, 2008, and the
results of its operations and changes in its net assets and financial
highlights for each of the two years in the period then ended, in conformity with accounting principles generally
accepted in the United States of America.

/s/ Blackman Kallick, LLP

Chicago, Illinois

April
30,
2009exv10w2

Exhibit 10.2

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors of

Federal Life Insurance Company (Mutual):

We consent
to the use in the Post-Effective Amendment No. 2 to the
Registration Statement on Form N-4 (No. 333-147464) of our
reports dated April 27, 2009
and April 30, 2008 with respect to the statutory statements of admitted assets,
liabilities and surplus as of December 31, 2008 and December 31,
2007, respectively, and for each of the
years in the two year periods then ended  and the related statutory statements of
operations, changes in policyowners’ surplus and cash flow of Federal Life Insurance Company (Mutual) (the
“Company”) as of December 31, 2008  and for
each of the years in the three year period then ended, appearing in the Statement of Additional Information, which is part of the
Registration Statement, and to the reference to our firm under the heading “Experts” in the
Statement of Additional Information. Our audit reports include explanatory language that states that the Company prepared
its financial statements in conformity with accounting practices prescribed or permitted by the
Illinois Department of Financial and Professional Regulations — Division of Insurance, which is a
comprehensive basis of accounting other than accounting principles generally accepted in the United
States of America. Our audit reports state that the effects on the financial statements of the
variances between the statutory basis of accounting and accounting principles generally accepted in
the United States of America, although not reasonably determinable, are presumed to be material.
Accordingly, our audit reports state that, in our opinion, the statutory financial statements
referred to above do not present fairly, in conformity with accounting principles generally
accepted in the United States of America, the financial position of the Company as of December 31,
2008 and 2007, and the results of its operations and its cash flows
for the  three-year period ended December 31, 2008. Our audit
reports then state that, in our opinion, the statutory financial statements referred to above
present fairly, in all material respects, the admitted assets, liabilities and policyholders’
surplus of the Company as of December 31, 2008 and 2007, and the results of its operations and its cash flow
for the three-year period ended December 31, 2008 on the basis described in Note 1.

/s/ Blackman Kallick, LLP

Chicago, Illinois

April
30, 2009exv10w1

EXHIBIT 10.1

Fifth Amendment

Dated as of April 24, 2009

to

Second Amended and Restated Receivables Loan Agreement

     This Fifth Amendment (the “Amendment”), dated as of April 24, 2009, is entered into among BWA
Receivables Corporation (the “Borrower”), BorgWarner Inc. (“BWI” and in its capacity as Collection
Agent, the “Collection Agent”), Windmill Funding Corporation, a Delaware corporation (“Windmill”),
the Bank listed on the signature page hereof (the “Bank”) and The Royal Bank of Scotland plc,
(successor to ABN AMRO Bank N.V.), as agent for Windmill, and the Bank (the “Agent”).

     Reference is hereby made to that certain Second Amended and Restated Receivables Loan
Agreement, dated as of December 6, 2004 (as amended, supplemented or otherwise modified through the
date hereof, the “Loan Agreement”), among the Borrower, the Collection Agent, Windmill, the Bank
and the Agent. Terms used herein and not otherwise defined herein which are defined in each
Amended Agreement or the other Transaction Documents (as defined in the Loan Agreement) shall have
the same meaning herein as defined therein.

     The parties hereto hereby acknowledge that pursuant to that certain Omnibus Assignment and
Assumption Agreement dated as of October 1, 2008 ABN AMRO Bank N.V. has assigned all of its rights
and obligations under the Transaction Documents as Liquidity Provider, Committed Lender and Bank
and has resigned in its capacity as Agent and The Royal Bank of Scotland plc has accepted such
assignment and assumed all of the duties of ABN AMRO Bank N.V. under the Transaction Documents in
its various capacities and agreed to act in the capacity of Agent under the Transaction Documents.

     For good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:

     Section 1. Upon execution by the parties hereto in the space provided for that purpose below,
the Loan Agreement shall be, and it hereby is, amended as follows:

     (a) The date “April 24, 2009” appearing in clause (iv) of the defined term “Bank Termination
Date” appearing in Article I to the Loan Agreement is deleted and replaced with the date “April 27,
2009”.

     (b) The date “April 24, 2009” appearing in clause (i) of the defined term “Loan Amortization
Date” appearing in Article I of the Loan Agreement is deleted and replaced with the date “April 27,
2009”.

     Section 2. This Amendment shall become effective as of the date first stated above once the
Agent has received executed counterparts hereof from each of the parties hereto.

     Section 3. The Loan Agreement, as amended and supplemented hereby or as contemplated herein,
and all rights and powers created thereby and thereunder or under the other Transaction Documents
(as defined in the Loan Agreement) and all other documents executed in connection therewith, are in
all respects ratified

 

 

and confirmed. From and after the date hereof, the Loan Agreement shall be amended and
supplemented as herein provided, and, except as so amended and supplemented, the Loan Agreement,
each of the other Transaction Documents and all other documents executed in connection therewith
shall remain in full force and effect.

     Section 4. This Amendment may be executed in two or more counterparts, each of which shall
constitute an original but both or all of which, when taken together, shall constitute but one
instrument.

     Section 5. This Amendment shall be governed and construed in accordance with the internal laws
of the State of Illinois.

     Section 6. The Borrower agrees to pay on the date hereof all costs and expenses of or incurred
by the Agent in connection with the negotiation, preparation, execution and delivery of this
Amendment and the outstanding legal fees of Chapman and Cutler LLP.

[Signature Pages to Follow]

 

 

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

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	The Royal Bank of Scotland plc, as the Agent and as a Bank
	 
	 	 	 	 	 	 
	 	 	By: RBS Securities Inc., as agent
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Windmill Funding Corporation
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BWA Receivables Corporation
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BorgWarner Inc.
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:exv10w2

EXHIBIT 10.2

AMENDMENT NO. 1 AND CONSENT AGREEMENT

     This Amendment No. 1 and Consent Agreement (this “Agreement”) dated as of April 30,
2009 is entered into by and among BORGWARNER INC., a Delaware corporation (the “Borrower”),
the Guarantors (as defined in the Credit Agreement (defined below)), the Lenders (as defined in the
Credit Agreement (defined below)) identified on the signature pages hereto, JPMORGAN CHASE BANK, as
the administrative agent under the Credit Agreement prior to giving effect to this Agreement (in
such capacity, the “Existing Administrative Agent”), and BANK OF AMERICA, N.A. (“Bank
of America”), as the administrative agent under the Credit Agreement after giving effect to
this Agreement (in such capacity, the “Replacement Administrative Agent”). Capitalized
terms used but not otherwise defined herein shall have the meanings ascribed thereto in the Credit
Agreement.

STATEMENT OF PURPOSE

     WHEREAS, the Borrower, the Lenders (including Bank of America), and the Existing
Administrative Agent are all parties to that certain Credit Agreement dated as of July 22, 2004 (as
amended hereby and as further amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”).

     WHEREAS, the Existing Administrative Agent has provided, or pursuant hereto is providing,
notice to the Borrower that it is resigning as the Administrative Agent, Issuing Bank and Swingline
Lender pursuant to Section 2.6(i) and Article VIII of the Credit Agreement (prior
to giving effect to this Agreement), and the Borrower has requested that Bank of America become the
Administrative Agent, the Issuing Bank and the Swingline Lender under the Credit Agreement, and
Bank of America has agreed to do so subject to the terms and conditions set forth herein.

     WHEREAS, the Borrower has requested, or pursuant hereto is requesting, pursuant to Section
2.7 of the Credit Agreement (prior to giving effect to this Agreement), that the Lenders agree
to extend their Commitments to an extended Maturity Date of January 22, 2011, and certain of the
Lenders are willing so to extend all or a portion of their respective Commitments subject to the
terms and conditions set forth herein, and subject to reversion to the existing Maturity Date of
July 22, 2009 under certain circumstances as more fully set forth in the Amended Credit Agreement
(defined below).

     WHEREAS, the Borrower has requested that the Replacement Administrative Agent and the Lenders
agree to amend the Credit Agreement as more specifically set forth herein (with the substitution of
the Replacement Administrative Agent for the Existing Administrative Agent being deemed to have
occurred prior to such amendments, as further provided below), and such Administrative Agent and
Lenders party hereto have agreed to such amendments subject to the terms and conditions set forth
herein.

 

 

     NOW, THEREFORE, subject to the occurrence of the Effective Date pursuant to Section 4 hereof
and in consideration of these premises and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

     1. Replacement of Administrative Agent, Issuing Bank and Swingline Lender. Pursuant
to its notice to the Borrower, delivered either prior to the date of this Agreement or pursuant to
its signature to this Agreement, and notwithstanding any contrary provisions relating to notice or
process in the Credit Agreement, effective upon the Effective Date (defined below) the Existing
Administrative Agent shall be deemed to have resigned as the Administrative Agent, the Issuing Bank
and the Swingline Lender, and Bank of America shall at such time become the Administrative Agent,
the Issuing Bank and the Swingline Lender, all pursuant to an Agency Resignation, Assignment and
Assumption Agreement dated as of the date hereof between the Existing Administrative Agent and the
Replacement Administrative Agent (the “Agent Replacement Agreement”). The parties hereto, by their
execution of this Agreement, agree to such resignation and replacement of the Administrative Agent,
the Issuing Bank and the Swingline Lender, and that such resignation and replacement, and the Agent
Replacement Agreement, shall be deemed to have occurred and be effective upon the occurrence of the
Effective Date immediately prior to the effectiveness of the extension (and related assignments, if
any) and amendments set forth in paragraphs 2 and 3 below.

     2. Extension of Maturity Date and Related Assignments.

     (a) Pursuant to its notice to the Lenders, delivered either prior to the date of this
Agreement or by this Agreement, the Borrower has requested that the Lenders agree to extend
the Maturity Date of their Commitments under the Credit Agreement pursuant to Section 2.7
thereof (with such adjustments thereto as are provided herein) to an extended Maturity Date
of January 22, 2011 (the “Extended Maturity Date”).

     (b) Each Lender that is willing to extend all or a portion of its Commitment, or an
amount in excess of its Commitment in effect prior to the Effective Date, under the Credit
Agreement to the proposed Extended Maturity Date as a Continuing Lender (such amount with
respect to any Lender, its “Extended Commitment Amount”) has executed this Agreement
and has indicated to the Borrower and the Replacement Administrative Agent the amount of its
Commitment it is agreeing to extend to the Extended Maturity Date. All such extensions
shall be pro rata among the Facilities of the Continuing Lenders.

     (c) The Commitments of Non-Extending Lenders and the portion of the Commitments of
Continuing Lenders that are not extended in accordance with this Agreement (such amount with
respect to any Lender, its “Non-Extended Commitment Amount”) shall continue to have
the Maturity Date in effect prior to giving effect to this Agreement, July 22, 2009 (the
“Existing Maturity Date”).

     (d) The Commitments of all Lenders in effect as of the Effective Date shall continue
unchanged to the close of business on the Existing Maturity Date. Upon the close of
business on the Existing Maturity Date, the Extended Commitment Amounts

2

 

shall immediately take effect, and at such time the Extended Commitment Amounts of the
Continuing Lenders shall be as set forth on Schedule A hereto (after giving effect
to any assignments deemed to have occurred on the Existing Maturity Date pursuant to
paragraph 2(e) below).

     (e) In the event that the Extended Commitment Amount upon the occurrence of the
Existing Maturity Date with respect to any Continuing Lender exceeds such Lender’s
Commitment prior to the Existing Maturity Date (with respect to any Continuing Lender, its
“Excess Extended Commitment”), then each Lender with a Commitment expiring on the
Existing Maturity Date shall be deemed to have made an assignment, pro rata among them in
accordance with their Non-Extended Commitment Amounts, to each Lender holding an Excess
Extended Commitment. Such assignments shall be deemed to have occurred immediately at the
close of business on the Existing Maturity Date, pursuant to the Borrower’s rights under
Section 2.7(d) of the Credit Agreement, but without any further action (and without the need
for any Assignment and Acceptance or other documentation) hereunder or under the Credit
Agreement, and notwithstanding anything to the contrary in the Credit Agreement;
provided that in the event that any Loans are outstanding pursuant to any reduced
Non-Extended Commitment Amounts, applicable payments of principal, interest and fees shall
be made by the Borrower and/or the Lenders with Excess Extended Commitments, as the
Replacement Administrative Agent may direct, in order to effectuate such deemed assignments.

     (f) After the Effective Date, the Borrower may exercise its rights to have Lenders
holding Non-Extended Commitment Amounts assign such amounts to Lenders or prospective
Lenders willing to agree to the Extended Maturity Date with respect to such Commitments, in
each case in compliance with the requirements of Section 2.7(d) of the Credit Agreement,
except that (i) such assignment may be required with respect to any Non-Extended
Commitment Amount even if the applicable Lender is a Continuing Lender because it has agreed
to the Extended Maturity Date hereunder with respect to a portion of its Commitment, and
(ii) any such assignment shall only be effective upon the occurrence of the Existing
Maturity Date. In the event any such assignment occurs, the Borrower and the proposed
assignee shall inform the Replacement Administrative Agent, and Schedule A hereto
shall be revised to show such assignment, so that Schedule A shows all Extended
Commitment Amounts as of the close of business on the Existing Maturity Date.

     (g) The Extended Commitment Amounts set forth on Schedule A as of the Existing
Maturity Date shall be effective pursuant to this paragraph 2 as of such date, without
regard to any assignments by any Continuing Lenders after the Effective Date but prior to
the Existing Maturity Date. The Schedule A prepared and provided by the Replacement
Administrative Agent shall be conclusive as of the Existing Maturity Date absent manifest
error.

     (h) The parties hereto hereby acknowledge that the extension of the Maturity Date to
the Extended Maturity Date is subject to the provisions of the Amended Credit

3

 

Agreement, and such Maturity Date may revert to July 22, 2009 under certain
circumstances as more fully set forth in the Amended Credit Agreement.

     (i) The parties hereto hereby waive (i) any inconsistency between the timing of the
proposed extension as set forth in this paragraph 2 of this Agreement and the timing of
extensions generally required by Section 2.7 of the Credit Agreement, including
periods of notice, response and effectiveness, (ii) any inconsistency between this Agreement
and Section 2.7 of the Credit Agreement to the extent that any Lender is agreeing to
extend some, but not all, of its Commitments pursuant to this Agreement, and (iii) any
requirement in Section 2.7(a) of the Credit Agreement that at least the Required
Lenders consent to extend the Maturity Date with respect to their Commitments.

     (j) The extension of the Maturity Date with respect to the Extended Commitment Amounts
pursuant to this paragraph 2 shall be deemed to have occurred on the Effective Date
immediately after the replacement of the Administrative Agent set forth in paragraph 1 above
and immediately prior to the amendments set forth in paragraph 3 below, despite the
effectiveness of the Extended Commitment Amounts and Schedule A not taking effect until the
Existing Maturity Date.

     (k) In the event that pursuant to the Amended Credit Agreement the Maturity Date with
respect to the Extended Commitment Amounts reverts to the Existing Maturity Date, as
provided therein, Schedule A shall not be effective, and all Commitments shall
mature as of the Existing Maturity Date.

     3. Amendments.

     (a) Amendment to the Credit Agreement. The Credit Agreement is hereby amended
in its entirety so that, after giving effect to such amendment, it reads in the form set
forth on Exhibit A hereto (in such form, the “Amended Credit Agreement”).

     (b) Additional Exhibits and Schedules. The following additional Exhibits and
Schedules to the Credit Agreement are hereby added to the Credit Agreement, and have been or
are being delivered in connection with this Agreement:

     (i) a Guaranty Agreement (the “Guaranty Agreement”) among the
Replacement Administrative Agent and certain of the Subsidiaries as set forth on the
signature pages thereto (the “Guarantors” and together with the Borrower,
the “Loan Parties”), which shall be substantially in the form attached
hereto as Exhibit B and shall constitute Exhibit C under the Credit
Agreement;

     (ii) a new Schedule 1.1 (Mandatory Cost Formulae) to the Credit Agreement, in
the form of Annex A hereto;

     (iii) a new Schedule 3.14 (Subsidiaries and Other Equity Interests) to the
Credit Agreement, in the form of Annex B hereto;

     (iv) a new Schedule 9.1 (Administrative Agent’s Office, Certain Addresses for
Notices) to the Credit Agreement, in the form of Annex C hereto.

4

 

     (c) Additional Amendment to Credit Agreement. After giving effect to the
amendment set forth in paragraph 3(a) above, the Amended Credit Agreement shall be deemed to
be further amended by adding one of the following provisions thereto:

     (i) if Lenders representing 100% of the Commitments have signed this Agreement
(without regard to whether such Lenders have agreed to any extension of their
Commitments pursuant to paragraph 2 above), then Section 2.19(b) of the
Amended Credit Agreement shall be further amended by deleting such section in its
entirety and replacing it with the following:

     (b) If at any time insufficient funds are received by and
available to the Administrative Agent to pay fully all amounts of
principal, unreimbursed LC Disbursements, interest, fees and other
Obligations then due hereunder and under the other Loan Documents,
such funds shall be applied:

     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) payable to the
Administrative Agent in its capacity as such;

     Second, to payment of that portion of the
Obligations arising under the Loan Documents constituting
fees, indemnities and other amounts (other than principal,
interest and Letter of Credit fees under Section 2.13(b))
payable to the Lenders and the Issuing Bank (including fees,
charges and disbursements of counsel to the respective
Lenders and the Issuing Bank arising under the Loan Documents
and amounts payable under Sections 2.16, 2.17 and 2.18),
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 under Section 2.13(b) and interest on the Loans, LC
Borrowings and other Obligations arising under the Loan
Documents, ratably among the Lenders and the Issuing Bank 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, LC
Borrowings and Obligations then owing under Secured Hedge
Agreements and Secured Cash Management Agreements, ratably
among the Lenders, the Issuing Bank,

5

 

the Hedge Banks and the Cash Management Banks in
proportion to the respective amounts described in this clause
Fourth held by them;

     Fifth, to the Administrative Agent for the
account of the Issuing Bank, to Cash Collateralize that
portion of LC Exposures 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 the
Borrower or as otherwise required by Law.

     Subject to Section 2.6(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.

     Notwithstanding the foregoing, Obligations arising under Secured Cash
Management Agreements and Secured Hedge Agreements shall be excluded from
the application described above if either (a) no Default has occurred and is
continuing at such time or (b) the Administrative Agent has not received
written notice thereof, together with such supporting documentation as the
Administrative Agent may request, from the applicable Cash Management Bank
or Hedge Bank, as the case may be. Each Cash Management Bank or Hedge Bank
not a party to the Credit Agreement that has given the notice contemplated
by the preceding sentence shall, by such notice, be deemed to have
acknowledged and accepted the appointment of the Administrative Agent
pursuant to the terms of Article VIII hereof for itself and its Affiliates
as if a “Lender” party hereto.

     (ii) if Lenders representing less than 100% of the Commitments have signed this
Agreement (without regard to whether such Lenders have agreed to any extension of
their Commitments pursuant to paragraph 2 above), then the following new Section
5.14 shall be added to the Amended Credit Agreement:

SECTION 5.14 Additional Amendment. On or promptly after July
22, 2009, enter into an amendment with the Administrative Agent and all
of the Lenders with Commitments at such time (and the Administrative
Agent and each of the Lenders agrees to enter into such an amendment),
on reasonable terms and conditions, to amend Section 2.19(b) by
replacing such subsection in its entirety with language substantially
as follows:

6

 

     (b) If at any time insufficient funds are received by and
available to the Administrative Agent to pay fully all amounts
of principal, unreimbursed LC Disbursements, interest, fees and
other Obligations then due hereunder and under the other Loan
Documents, such funds shall be applied:

     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) payable to the
Administrative Agent in its capacity as such;

     Second, to payment of that portion of the
Obligations arising under the Loan Documents constituting
fees, indemnities and other amounts (other than principal,
interest and Letter of Credit fees under Section 2.13(b))
payable to the Lenders and the Issuing Bank (including fees,
charges and disbursements of counsel to the respective
Lenders and the Issuing Bank arising under the Loan Documents
and amounts payable under Sections 2.16, 2.17 and 2.18),
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 under Section 2.13(b) and interest on the Loans, LC
Borrowings and other Obligations arising under the Loan
Documents, ratably among the Lenders and the Issuing Bank 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, LC
Borrowings and Obligations then owing under Secured Hedge
Agreements and Secured Cash Management Agreements, ratably
among the Lenders, the Issuing Bank, the Hedge Banks and the
Cash Management Banks in proportion to the respective amounts
described in this clause Fourth held by them;

     Fifth, to the Administrative Agent for the
account of the Issuing Bank, to Cash Collateralize that
portion of LC Exposures comprised of the aggregate undrawn
amount of Letters of Credit; and

7

 

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

     Subject to Section 2.6(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.

     Notwithstanding the foregoing, Obligations arising under
Secured Cash Management Agreements and Secured Hedge Agreements
shall be excluded from the application described above if either
(a) no Default has occurred and is continuing at such time or
(b) the Administrative Agent has not received written notice
thereof, together with such supporting documentation as the
Administrative Agent may request, from the applicable Cash
Management Bank or Hedge Bank, as the case may be. Each Cash
Management Bank or Hedge Bank not a party to the Credit
Agreement that has given the notice contemplated by the
preceding sentence shall, by such notice, be deemed to have
acknowledged and accepted the appointment of the Administrative
Agent pursuant to the terms of Article VIII hereof for itself
and its Affiliates as if a “Lender” party hereto.

     (d) Joint Lead Arrangers and Joint Book Managers. After giving effect to the
amendment set forth in paragraph 3(a) above, the Joint Lead Arrangers and the Joint Book
Managers for this Agreement and for the Amended Credit Agreement shall be Banc of America
Securities LLC, Deutsche Bank Securities Inc. and Citigroup Global Markets Inc., as set
forth in the Amended Credit Agreement.

     4. Conditions to Effectiveness. Upon the satisfaction of each of the following
conditions, this Agreement shall be deemed to be effective (with the provisions in paragraphs 1, 2
and 3 above effective in the order provided therein) as of the date hereof (the date of
satisfaction of such conditions, the “Effective Date”):

     (a) the Administrative Agent shall have received:

     (i) counterparts of (A) this Agreement (including Schedule B hereto
setting forth utilizations, as of the Effective Date after giving effect to all
transactions contemplated by this Agreement to occur on such date, with respect to
each of the permitted additional amounts (i.e., baskets) set forth in Sections
6.2(d), (e) and (f) of the Credit Agreement) executed by the
Administrative

8

 

Agent, the Required Lenders and the Borrower, (B) the Guaranty Agreement
executed by the Replacement Administrative Agent and each Guarantor, and (C) the
Agent Replacement Agreement;

     (ii) such certificates of resolutions or other action, incumbency certificates
and/or other certificates of responsible officers of the Loan Parties as the
Replacement 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 (as defined
in the Amended Credit Agreement) to which such Loan Party is a party;

     (iii) such documents and certifications as the Replacement Administrative Agent
may reasonably require to evidence that each Loan Party is duly organized or formed,
and that the Borrower is validly existing, in good standing and qualified to engage
in business in Delaware, Michigan and Illinois;

     (iv) a favorable opinion of Miller Canfield, counsel to each of the Loan
Parties, addressed to the Replacement Administrative Agent and each Lender, as to
such matters concerning the Loan Parties and the Loan Documents as the Replacement
Administrative Agent or the Required Lenders may reasonably request;

     (v) completed requests for information, dated on or before the Effective Date,
listing all effective financing statements filed in all jurisdictions that the
Replacement Administrative Agent may deem necessary or desirable in order to perfect
Liens on assets of any Loan Party that name any Loan Party as debtor, together with
copies of such other financing statements;

     (vi) such other instruments, documents and certificates as the Administrative
Agent shall reasonably request in connection with the execution of this Agreement;

     (b) the Borrower shall have paid to the Replacement Administrative Agent, for the
account of each Continuing Lender (including Bank of America), an extension fee on the
aggregate principal amount of all Extended Commitment Amounts, as separately agreed among
the Borrower, the Replacement Administrative Agent and the various Continuing Lenders;

     (c) the Borrower shall have issued convertible senior notes due 2012 (the
“Convertible Notes”) pursuant to that certain Indenture dated as of September 23,
1999 between the Borrower and The Bank of New York Trust Company, N.A., as trustee, and a
supplemental indenture thereto, all on terms and conditions reasonably satisfactory to the
Replacement Administrative Agent and the Continuing Lenders;

     (d) the Borrower shall have paid (i) all fees required to be paid to the Replacement
Administrative Agent and the new Joint Lead Arrangers (as provided in paragraph 3(d) above)
on or before the Effective Date, including amounts set forth in the

9

 

Fee Letters (as defined in the Amended Credit Agreement), and (ii) all fees, charges
and disbursements of counsel to the Replacement Administrative Agent (directly to such
counsel if requested by the Replacement Administrative Agent) to the extent invoiced prior
to or on the Effective 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 the
Borrower and the Replacement Administrative Agent).

     For purposes of determining compliance with the conditions specified in this paragraph
4, 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
Effective Date specifying its objection thereto.

     5. Effect of the Agreement. Except as expressly provided herein, the Credit Agreement
and the other Loan Documents shall remain unmodified and in full force and effect. Except as
expressly set forth herein, this Agreement shall not be deemed (a) to be a waiver of, or consent
to, a modification or amendment of, any other term or condition of the Credit Agreement or any
other Loan Document, (b) to prejudice any other right or rights which the Administrative Agent or
the Lenders may now have or may have in the future under or in connection with the Credit Agreement
or the other Loan Documents or any of the instruments or agreements referred to therein, as the
same may be amended, restated, supplemented or otherwise modified from time to time, (c) to be a
commitment or any other undertaking or expression of any willingness to engage in any further
discussion with the Borrower or any other Person with respect to any waiver, amendment,
modification or any other change to the Credit Agreement or the Loan Documents or any rights or
remedies arising in favor of the Lenders or the Administrative Agent, or any of them, under or with
respect to any such documents or (d) to be a waiver of, or consent to or a modification or
amendment of, any other term or condition of any other agreement by and among the Borrower, on the
one hand, and the Administrative Agent or any other Lender, on the other hand. References in the
Credit Agreement to “this Agreement” (and indirect references such as “hereunder”, “hereby”,
“herein”, and “hereof”) and in any Loan Document to the Credit Agreement shall be deemed to be
references to the Credit Agreement as modified hereby.

     6. Representations and Warranties/No Default. By its execution hereof,

     (a) the Borrower and each of the Guarantors hereby certifies, represents and warrants
to the Existing Administrative Agent, the Replacement Administrative Agent and the Lenders
that:

     (i) after giving effect to this Agreement and the transactions set forth in
paragraphs 1, 2 and 3 above, each of the representations and warranties set forth in
the Amended Credit Agreement and the other Loan Documents is true and correct as of
the date hereof, except that for purposes of this paragraph 6(a)(i), the
representations and warranties contained in Section 3.4(a) of the Credit Agreement
shall be deemed to refer to the most recent annual and quarterly

10

 

financial statements furnished pursuant to Sections 5.1(a) and (b) of the
Credit Agreement, respectively;

     (ii) after giving effect to this Agreement and the transactions set forth in
paragraphs 1, 2 and 3 above, no Default or Event of Default has occurred or is
continuing;

     (iii) it has the right, power and authority and has taken all necessary
corporate and other action to authorize the execution, delivery and performance of
this Agreement and each of the other documents executed in connection herewith to
which it is a party, including the Guaranty Agreement, in accordance with their
respective terms and the transactions contemplated hereby;

     (iv) this Agreement and each of the other documents executed in connection
herewith to which it is a party, including the Guaranty Agreement, has been duly
executed and delivered by the duly authorized officers of the Borrower and each
Guarantor, as applicable, and each such document constitutes the legal, valid and
binding obligation of the Borrower or such Guarantor, as applicable, enforceable in
accordance with its terms, except as may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar state or federal debtor relief laws from time
to time in effect which affect the enforcement of creditors’ rights in general and
the availability of equitable remedies; and

     (v) no consent, license or approval is required in connection with the
execution, delivery and performance by such Loan Party and the validity against such
Loan Party of this Agreement and each of the other documents executed in connection
herewith to which it is a party, including the Guaranty Agreement; and

     (b) the Borrower hereby certifies, represents and warrants to the Existing
Administrative Agent, the Replacement Administrative Agent and the Lenders that the rating
of Index Debt as of the date hereof is Ba1 by Moody’s and BBB by S&P.

     7. Reaffirmations. Each Loan Party (a) agrees that the transactions contemplated by
this Agreement shall not limit or diminish the obligations of such Person under, or release such
Person from any obligations under, the Credit Agreement, the Guaranty Agreement or any other Loan
Document to which it is a party, (b) confirms and reaffirms its obligations under the Credit
Agreement, the Guaranty Agreement and each other Loan Document to which it is a party and (c)
agrees that the Credit Agreement, the Guaranty Agreement and each other Loan Document to which it
is a party remain in full force and effect and are hereby ratified and confirmed.

     8. Miscellaneous.

     (a) Governing Law and Waiver of Jury Trial. THE PROVISIONS OF SECTIONS 9.9 AND
9.10 OF THE AMENDED CREDIT AGREEMENT ARE INCORPORATED HEREIN BY REFERENCE, MUTATIS
MUTANDIS, AS IF FULLY REPRODUCED HEREIN.

11

 

     (b) Counterparts. This Agreement may be executed by one or more of the parties
hereto in any number of separate counterparts and all of said counterparts taken together
shall be deemed to constitute one and the same instrument.

     (c) Electronic Transmission. A facsimile, telecopy, pdf or other reproduction
of this Agreement may be executed by one or more parties hereto, and an executed copy of
this Agreement may be delivered by one or more parties hereto by facsimile or similar
instantaneous electronic transmission device pursuant to which the signature of or on behalf
of such party can be seen, and such execution and delivery shall be considered valid,
binding and effective for all purposes. At the request of any party hereto, all parties
hereto agree to execute an original of this Agreement as well as any facsimile, telecopy,
pdf or other reproduction hereof.

     (d) Costs and Expenses. The Borrower agrees to pay to the Replacement
Administrative Agent on demand all fees and out-of-pocket charges and other expenses
incurred in connection with this Agreement, including, without limitation, the reasonable
fees and disbursements of counsel for the Replacement Administrative Agent.

[Signature Pages Follow]

12

 

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

	 	 	 	 	 
	 	

BORGWARNER INC., as Borrower

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	BORGWARNER DIVERSIFIED TRANSMISSION PRODUCTS INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	BORGWARNER DIVERSIFIED TRANSMISSION PRODUCTS SERVICES INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	BORGWARNER EMISSIONS SYSTEMS HOLDINGS INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	BORGWARNER EMISSIONS SYSTEMS INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	BORGWARNER EMISSIONS SYSTEMS OF MICHIGAN INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	

BORGWARNER EUROPE INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	BORGWARNER HOLDING INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	BORGWARNER INVESTMENT HOLDING INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	BORGWARNER JAPAN INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	BORGWARNER MORSE TEC INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	BORGWARNER NW INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	BORGWARNER POWDERED METALS INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	BORGWARNER SOUTH ASIA INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	BORGWARNER THERMAL SYSTEMS INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	BORGWARNER THERMAL SYSTEMS OF MICHIGAN INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	BORGWARNER TORQTRANSFER SYSTEMS INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	BORGWARNER TRANSMISSION SYSTEMS INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	BORGWARNER TURBO SYSTEMS INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	BRONSON SPECIALTIES INC., as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	BWA TURBO SYSTEMS HOLDING CORPORATION, as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	KUHLMAN CORPORATION, as Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, AS RETIRING
EXISTING ADMINISTRATIVE AGENT, RETIRING ISSUING BANK AND RETIRING SWINGLINE LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., AS
REPLACEMENT ADMINISTRATIVE
AGENT

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., AS
REPLACEMENT ISSUING BANK AND SWING LINE LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	DEUTSCHE BANK AG NEW YORK BRANCH, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	CITIBANK, N.A., AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	MERRILL LYNCH BANK USA, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	
CALYON NEW YORK BRANCH, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	BANK OF CHINA, NEW YORK BRANCH, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	THE BANK OF TOKYO-MITSUBISHI, LTD., CHICAGO BRANCH, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	CREDIT SUISSE FIRST BOSTON, ACTING THROUGH ITS CAYMAN ISLANDS BRANCH, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	MIZUHO CORPORATE BANK, LTD., AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	MORGAN STANLEY BANK, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	SUMITOMO MITSUI BANKING CORPORATION, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	UBS LOAN FINANCE LLC, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	ABN AMRO BANK N.V., AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	BARCLAYS BANK PLC, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	DRESDNER BANK AG, NEW YORK AND GRAND CAYMAN BRANCHES, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	MELLON BANK, N.A., AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	NORTHERN TRUST COMPANY, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	THE ROYAL BANK OF SCOTLAND PLC, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	SANPAOLO IMI S.P.A., AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

	 	 	 	 	 
	 	BANCA DI ROMA — CHICAGO BRANCH, AS A LENDER

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

BorgWarner Inc.

Amendment No. 1 and Consent

Signature Pages

 

 

Exhibit A

(to Amendment No. 1 and Consent)

[Amended Credit Agreement attached.]

 

 

Exhibit B

(to Amendment No. 1 and Consent)

Exhibit C

(to Amended Credit Agreement)

[Execution copy of Guaranty Agreement attached.]

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