Document:

EX-10(XIII)-Amend #5 to Credit Agmt Dated 12/21/01

 

Exhibit (10)(xiii)

AMENDMENT NO. 5 TO

AMENDED AND RESTATED CREDIT AGREEMENT

                    THIS AMENDMENT NO. 5 TO AMENDED AND RESTATED CREDIT AGREEMENT dated as of
December 21, 2001 (this “Amendment No. 5”), by and among COOPER TIRE & RUBBER
COMPANY, a Delaware corporation (as more fully defined in the Existing Credit
Agreement referred to below, the “Borrower”), and the Banks (as defined in the
Existing Credit Agreement) and PNC BANK, NATIONAL ASSOCIATION, in its capacity
as the issuer of letters of credit under the Existing Credit Agreement and as
agent for the Banks under the Existing Credit Agreement (in such capacity, as
more fully defined in the Existing Credit Agreement, as the “Agent”), amends
that certain Amended and Restated Credit Agreement dated as of September 1,
2000, by and among the Borrower, the Banks and the Agent (such Credit Agreement
is herein referred to as the “Original Credit Agreement”), as amended by that
certain Amendment No. 1 to Amended and Restated Credit Agreement dated as of
March 27, 2001 (the “Amendment No. 1”), that certain Amendment No. 2 to Amended
and Restated Credit Agreement dated as of August 30, 2001 (the “Amendment No.
2”), that Amendment No. 3 to Amended and Restated Credit Agreement dated as of
and effective nunc pro tunc as of September 30, 2001, (the “Amendment No. 3”)
and that Amendment No. 4 dated as of December 1, 2001 but effective nunc pro
tunc as of September 30, 2001 (the “Amendment No. 4”); and the Original Credit
Agreement, as amended by the Amendment No. 1, the Amendment No. 2, Amendment
No. 3 and the Amendment No. 4, is herein referred to as the “Existing Credit
Agreement”).

WITNESSETH:

                    WHEREAS, the Borrower has requested an amendment of certain covenants
contained in the Existing Credit Agreement; and the Banks and the Agent have
agreed to certain amendments to the Existing Credit Agreement upon the terms
and conditions set forth herein.

                    NOW THEREFORE, in consideration of the premises (each of which is
incorporated herein by reference), the Borrower, the Banks and the Agent,
intending to be legally bound hereby, agree as follows:

ARTICLE I

AMENDMENTS TO EXISTING CREDIT AGREEMENT

                    Section 1.01.   Amendment to Section 1.1 of the Existing Credit Agreement.
The following definitions set forth in Section 1.1 of the Existing Credit
Agreement are amended and restated to read as follows:

		
	 	         “Applicable Long Term Margin” shall mean for each Long Term
Revolving Credit Loan the rate per annum determined from time to time
based upon the Ratings in effect by S&P and Moody’s set forth under the
relevant column heading below opposite such Ratings:

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Exhibit (10)(xiii)

RATINGS

	 	 	 	 	 
	 	 	Applicable Long Term
	 	 	Margin (in basis points
	 	 	per annum)
	S&P/Moody's	 	Euro-Rate Option
	
	 	

	A+/A1 or higher
	 	 	17.0	 
	
	
	
	

	A/A2 or higher but less than A+/A1
	 	 	28.5	 
	
	
	
	

	A-/A3 or higher but less than A/A2
	 	 	39.0	 
	
	
	
	

	BBB+/Baa1 or higher but less than A-/A3
	 	 	59.0	 
	
	
	
	

	BBB/Baa2 or higher but less than BBB+/Baa1
	 	 	68.5	 
	
	
	
	

	BBB-/Baa3 or lower
	 	 	86.0	 

		
	 	provided that, in the event that the Ratings of S&P and Moody’s do not
coincide, the Applicable Long Term Margin set forth above opposite the
higher of such Ratings will apply; and provided further, in the event
that one Rating is in effect, the Applicable Long Term Margin set forth
above for such Rating will apply. Notwithstanding the foregoing, in the
event that no Ratings are in effect at such time of determination, the
Applicable Margin will be determined in a manner to be mutually agreed
upon by the Agent and the Borrower and consented to by the Banks.
	 
	 	         “Applicable Short Term Margin” shall mean for each Short Term
Revolving Credit Loan the rate per annum determined from time to time
based upon the Ratings in effect by S&P and Moody’s set forth under the
relevant column heading below opposite such Ratings:

RATINGS

	 	 	 	 	 
	 	 	Applicable Short Term
	 	 	Margin
	 	 	(in basis points per annum)
	S&P/Moody's	 	Euro-Rate Option
	
	 	

	A+/A1 or higher
	 	 	18.5	 
	
	
	
	

	A/A2 or higher but less than A+/A1
	 	 	30.0	 
	
	
	
	

	A-/A3 or higher but less than A/A2
	 	 	40.5	 
	
	
	
	

	BBB+/Baa1 or higher but less than A-/A3
	 	 	61.5	 
	
	
	
	

	BBB/Baa2 or higher but less than BBB+/Baa1
	 	 	71.0	 
	
	
	
	

	BBB-/Baa or lower
	 	 	88.5	 

		
	 	provided that, in the event that the Ratings of S&P and Moody’s do not
coincide, the Applicable Short Term Margin set forth above opposite the
higher of such Ratings will apply; and provided further, in the event
that one Rating is in effect, the Applicable Short Term Margin set forth
above for such Rating will apply. Notwithstanding the foregoing, in the
event that no Ratings are in effect at such time of determination, the
Applicable

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Exhibit (10)(xiii)

		
	 	Margin will be determined in a manner to be mutually agreed upon by the
Agent and the Borrower and consented to by the Banks.
	 
	 	         “Consolidated Net Income” shall mean the sum of (i) the total net
income (or deficit) of the Borrower and its Subsidiaries for the period
in question (taken as a cumulative whole), plus (ii) for any of the
Fiscal Quarters ending March 31, 2002, June 30, 2002, September 30, 2002
or December 31, 2002, the First Quarter 2002 Special Charge, (iii) in
addition to the First Quarter 2002 Special Charge, other future pre-tax
non-cash charges not to exceed $10,000,000 per occurrence or $25,000,000
in the aggregate during the term hereof, minus (iv) non-cash gains, all
as determined in accordance with GAAP on a consolidated basis,
consistently applied.
	 
	 	         “Consolidated Stockholders’ Equity” shall mean the total of those
items enumerated under the heading “Stockholders’ Equity” in the
Borrower’s then current balance sheet determined on a Consolidated basis
in accordance with GAAP, consistently applied. Provided, however, that
solely for purposes of determining the Borrower’s compliance with Section
5.1 hereof, the Borrower will exclude in the calculation of Consolidated
Stockholder’s Equity (i) the First Quarter 2002 Special Charge; and (ii)
the balance of any cumulative currency transaction adjustments as
required by GAAP.
	 
	 	         “Loan Documents” shall mean this Agreement, the Notes, the Requests
for Disbursement, the Amendment No. 1 Loan Documents, the Amendment No.
2 Loan Documents, the Amendment No. 3 Loan Documents, the Amendment No. 4
Loan Documents, the Amendment No. 5 Loan Documents and any other
instruments, certificates or documents delivered or contemplated to be
delivered hereunder or thereunder or in connection herewith or therewith,
as the same may be supplemented or amended from time to time in
accordance herewith or therewith; and “Loan Document” shall mean any of
the Loan Documents.
	 
	 	         “Long Term Facility Fee Rate” shall mean the rate per annum
determined from time to time based upon the Ratings in effect by S&P and
Moody’s set forth under the relevant column heading below opposite such
Ratings:

RATINGS

	 	 	 	 	 
	 	 	Long Term
	 	 	Facility Fee Rate
	S&P/Moody's	 	(in basis points per annum)
	
	 	

	A+/A1 or higher
	 	 	8.0	 
	
	
	
	

	A/A2 or higher but less than A+/A1
	 	 	9.0	 
	
	
	
	

	A-/A3 or higher but less than A/A2
	 	 	11.0	 
	
	
	
	

	BBB+/Baa1 or higher but less than A-/A3
	 	 	13.5	 
	
	
	
	

	BBB/Baa2 or higher but less than BBB+/Baa1
	 	 	16.5	 
	
	
	
	

	BBB-/Baa3 or lower
	 	 	19.0	 

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Exhibit (10)(xiii)

		
	 	provided that, in the event that the Ratings of S&P and Moody’s do not
coincide, the Long Term Facility Fee Rate set forth above opposite the
higher of such Ratings will apply; and provided further, in the event
that one Rating is in effect, the Long Term Facility Fee Rate set forth
above for such Rating will apply. Notwithstanding the foregoing, in the
event that no Ratings are in effect at such time of determination, the
Long Term Facility Fee Rate will be determined in a manner to be mutually
agreed upon by the Agent and the Borrower and consented to by the Banks.
The Long Term Facility Fee Rate shall be adjusted if necessary as of the
date of any change in the Ratings.
	 
	 	         “Long Term Revolving Credit Loan” shall mean Disbursements made by
the Banks under the Long Term Revolving Credit Commitment, which
Disbursements in the aggregate shall not exceed more than $125,000,000 at
any one time outstanding.
	 
	 	         “Short Term Facility Fee Rate” shall mean the rate per annum
determined from time to time based upon the Ratings in effect by S&P and
Moody’s set forth under the relevant column heading below opposite such
Ratings:

RATINGS

	 	 	 	 	 
	 	 	Short Term
	 	 	Facility Fee Rate
	S&P/Moody's	 	(in basis points per annum)
	
	 	

	A+/A1 or higher
	 	 	6.5	 
	
	
	
	

	A/A2 or higher but less than A+/A1
	 	 	7.5	 
	
	
	
	

	A-/A3 or higher but less than A/A2
	 	 	9.5	 
	
	
	
	

	BBB+/Baa1 or higher but less than A-/A3
	 	 	11.0	 
	
	
	
	

	BBB/Baa2 or higher but less than BBB+/Baa1
	 	 	14.0	 
	
	
	
	

	BBB-/Baa3 or lower
	 	 	16.5	 

		
	 	provided that, in the event that the Ratings of S&P and Moody’s do not
coincide, the Short Term Facility Fee Rate set forth above opposite the
higher of such Ratings will apply; and provided further, in the event
that one Rating is in effect, the Short Term Facility Fee Rate set forth
above for such Rating will apply. Notwithstanding the foregoing, in the
event that no Ratings are in effect at such time of determination, the
Short Term Facility Fee Rate will be determined in a manner to be
mutually agreed upon by the Agent and the Borrower and consented to by
the Banks. The Short Term Facility Fee Rate shall be adjusted if
necessary as of the date of any change in the Ratings.
	 
	 	         “Short Term Revolving Credit Loans” shall mean Disbursements made by
the Banks under the Short Term Revolving Credit Commitment which
Disbursements in the aggregate shall not exceed more than $125,000,000 at
any one time outstanding.

                    Section 1.02.   Addition of Definitions to Section 1.1 of the Existing
Credit Agreement. The following definitions are hereby added to Section 1.1 of
the Existing Credit Agreement and shall be inserted in their correct
alphabetical order:

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Exhibit (10)(xiii)

		
	 	         “Amendment No. 5” shall mean that certain Amendment No. 5 to Credit
Agreement dated as of December 21, 2001, by and among the Borrower, the
Agent and the Banks.
	 
	 	         “Amendment No. 5 Closing Date” shall mean December 28, 2001.
	 
	 	         “Amendment No. 5 Loan Documents” shall mean the Amendment No. 5,
and any other documents delivered or contemplated to be delivered
thereunder or in connection therewith, as the same may be supplemented or
amended from time to time in accordance herewith or therewith; and the
term “Amendment No. 5 Loan Document” shall mean any of the Amendment No.
5 Loan Documents.
	 
	 	         “First Quarter 2002 Special Charge” shall mean the pre-tax charge,
if any, recorded by the Borrower for its Fiscal Quarter ending March 31,
2002 relating to the write down of the value of any of its intangible
assets as required from the adoption by the Borrower on January 1, 2002
of FAS 142 relating to Goodwill and Other Intangible Assets.
	 
	 	         “Utilization Fee” means the fee described in Subsection 2.16f of this
Agreement.

                    Section 1.03.   Amendment to Section 2.1a. Section 2.1a of the Existing
Credit Agreement is hereby amended by deleting the reference therein to
“$150,000,000” and substituting in replacement thereof a reference to
“$125,000,000”.

                    Section 1.04.   Amendment to Section 2.2a. Section 2.2a of the Existing
Credit Agreement is hereby amended by deleting the reference therein to
“$200,000,000” and substituting in replacement thereof a reference to
“$125,000,000”.

                    Section 1.05.   Amendment to Section 2.5a. Section 2.5a of the Existing
Credit Agreement is hereby amended by deleting the reference therein to
“$350,000,000” and substituting in replacement thereof a reference to
“$250,000,000”.

                    Section 1.06.   Amendment to Section 2.5c. Section 2.5c of the Existing
Credit Agreement is hereby amended (i) by deleting the reference therein to
“$150,000,000” and substituting in replacement thereof a reference to
“$125,000,000”, and (ii) by deleting the reference therein to “$200,000,000”
and substituting in replacement thereof a reference to “$125,000,000”.

                    Section 1.07.   Amendment to Section 2.5h. Section 2.5h of the Existing
Credit Agreement is hereby amended by deleting the reference therein to
“$350,000,000” and substituting in replacement thereof a reference to
“$250,000,000”.

                    Section 1.08.   Amendment to Section 2.10a. Section 2.10a of the Existing
Credit Agreement is hereby amended by deleting the reference therein to
“$200,000,000” and substituting in replacement thereof a reference to
“$125,000,000”.

                    Section 1.09.   Amendment to Section 2.12 of the Existing Credit Agreement.
Section 2.12 of the Existing Credit Agreement is amended and restated to read
as follows:

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Exhibit (10)(xiii)

		
	 	         2.12       Method of Disbursements and Payments. All Disbursements under
the Loans shall be made by the Agent (i) making a wire transfer of such
funds to the account designated in the Borrower’s Request for
Disbursement in Dollars or the Optional Currency, as applicable or (ii)
transferring such funds into such accounts maintained with the Agent
designated in the Borrower’s Request for Disbursement. All payments of
principal, interest or other costs relating to the Loans, the Agent’s
Fee, the Bid Rate Administration Fee, the Letter of Credit Fee, the
Fronting Fee, the Optional Currency Fee, the Utilization Fee and the
Facility Fee shall be made by the Borrower to the Agent at the Agent’s
principal office or at such location as the Agent may direct by 12:00
noon (Pittsburgh, Pennsylvania time) on the due date. All funds shall be
immediately available funds when either transferred via wire transfer
into the account designated by the Borrower or delivered by the Borrower
to the Agent. Except as otherwise provided herein, interest on the
principal amount of each Loan made in an Optional Currency shall be paid
by the Borrower in such Optional Currency.

                    Section 1.10.   Amendment to Section 2.15 of the Existing Credit Agreement.
Section 2.15 of the Existing Credit Agreement is amended and restated to read
as follows:

		
	 	         2.15       Loan Account. The Agent shall open and maintain on its
books a Loan Account in the name of the Borrower, with respect to
Disbursements made, repayments, the computation and payment of
interest, the Facility Fee, the Agent’s Fee, the Bid Rate
Administration Fee, the Letter of Credit Fee, the Fronting Fee,
the Optional Currency Fee, the Utilization Fee and the computation
of other amounts due and sums paid to the Banks and the Agent
pursuant to this Article II. Except in the case of manifest error
in computation, such Loan Account shall be conclusive and binding
on the Borrower as to the amount at any time due to the Banks and
the Agent from the Borrower pursuant to this Article II.

                    Section 1.11.   Amendment Creating New Section 2.16f. The Existing Credit
Agreement is hereby amended by inserting a new Section 2.16f in proper order
reading as follows:

		
	 	         2.16f     Utilization Fee. The Borrower agrees to pay to the
Agent for the pro rata benefit of all of the Lenders a fee (the
“Utilization Fee”) equal to 0.1 % per annum on the aggregate
amount of the sum of all outstanding Revolving Credit Loans, Bid
Rate Loans, Swingline Loans, plus Letters of Credit Outstanding
(computed on the basis of the actual number of days elapsed using
a year of 360 days) for each day that the aggregate amount of the
sum of all outstanding Revolving Credit Loans, Bid Rate Loans,
Swingline Loans, and Letters of Credit Outstanding exceeds an
amount equal to fifty percent (50%) of the Commitments. The
Utilization Fee shall be payable quarterly in arrears on the last
day of each September, December, March and June during the term
hereof and on the Long Term Revolving Credit Termination Date,
with the first such payment due March 31, 2002 and shall be
calculated for the period from and including the Amendment No. 5
Closing Date to but excluding March 31, 2002.

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Exhibit (10)(xiii)

                    Section 1.12.   Amendment Creating New Section 2.23. The Existing Credit
Agreement is hereby amended by inserting a new Section 2.23 in proper order
reading as follows:

		
	 	         2.23       Increasing the Commitments. If at any time after the Amendment
No. 5 Closing Date, and so long as no Event of Default has occurred and
is continuing, the Borrower desires to increase the Commitments, the
Borrower shall notify the Agent, who will promptly notify each Bank
thereof, provided that any such increase shall be in a minimum of
$10,000,000 and the aggregate of all such increases shall not exceed
$100,000,000. The existing Banks shall have the right at any time within
thirty (30) days following such notice to increase their respective
Commitments so as to provide such additional Commitment pro-rata in
accordance with the Commitment Percentage of each, and any portion of
such requested increase which is not provided by any such existing Bank
shall be available to the other existing Banks pro-rata in accordance
with their Commitment Percentage, and thereafter, to the extent not
provided by existing Banks, to any additional lending institution or
institutions proposed by the Borrower and which is approved by the Agent
(which approval will not be unreasonably withheld) and which becomes a
party to this Agreement pursuant to documentation reasonably acceptable
to the Agent and prepared at the Borrower’s expense, which documentation
may be executed by the Borrower and the Agent (as agent for the Banks)
without further consent or action of the Banks, such consent hereby
deemed to be irrevocably given to the Agent by the Banks; provided,
however, that the Borrower shall have the right to have all of such
increase provided by such approved additional lending institution or
institutions if all the existing Banks decline to increase their
Commitments to accommodate any such requested increase. In the event of
any such increase in the aggregate Commitments and in the Commitment of
any Bank effected pursuant to the terms of this Section 2.23, new Notes
shall, to the extent deemed reasonably necessary or appropriate by the
Agent, be executed and delivered by the Borrower and, to the extent
deemed appropriate by the Agent, the surrender and cancellation of
existing Note(s); and the Borrower shall execute and deliver such
additional documentation setting forth the new commitments and commitment
percentages as the Agent shall reasonably request (which documentation
may be executed by the Borrower and the Agent (as agent for the Banks)
without further consent or action of the Banks, such consent herein is
deemed to be irrevocably given to the Agent by the Banks).

                    Section 1.13.   Amendment to Section 5.2 of the Existing Credit Agreement.
Section 5.2 of the Existing Credit Agreement is amended and restated to read as
follows:

		
	 	         5.2         Fixed Charge Coverage Ratio. The Borrower shall not incur or
remain liable for Consolidated Indebtedness owing to any Person if (a)
the incurrence of such Consolidated Indebtedness (after giving effect
thereto) would cause the Borrower to be in violation of any provision of
this Agreement or (b) the Borrower’s Consolidated Net Income Available
for Fixed Charges for the period of the four (4) Fiscal Quarters
immediately preceding the Date of Determination is equal to or less than
the percentage of all Fixed Charges payable during such period specified
in the table below:

	 	 	 	 	 
	Dates of Determination	 	Applicable Percentage
	
	 	

	On or prior to 12/31/2001
	 	 	150	%
	
	
	
	

	On or prior to 3/31/2002
	 	 	150	%

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Exhibit (10)(xiii)

	 	 	 	 	 
	Dates of Determination	 	Applicable Percentage
	
	 	

	On or prior to 6/30/2002
	 	 	150	%
	
	
	
	

	On or prior to 9/30/2002
	 	 	150	%
	
	
	
	

	On or prior to 12/31/2002
	 	 	175	%
	
	
	
	

	After 12/31/2002
	 	 	200	%

		
	 	provided, however, that the calculation of the fixed charge coverage
ratio as required by this Section 5.2 for any of the four Fiscal Quarter
periods ending December 31, 2001, March 31, 2002 and June 30, 2002 is
hereby modified such that the numerator of the fixed charge coverage
ratio for each such a four Fiscal Quarter period shall read as follows:
“the Borrower’s Consolidated Net Income Available for Fixed Charges plus
the Third Quarter 2001 Special Charge”.

                    Section 1.14.   Amendment to Section 7.2a. Section 7.2a of the Existing
Credit Agreement is hereby amended and restated in its entirety as follows:

		
	 	         7.2a       Payment. Default in the payment of (i) principal of or
interest on any Note, and continuance thereof for five (5) days,
or (ii) any Facility Fee, any Bid Rate Administrative Fee, any
Utilization Fee, any Letter of Credit Fee, any Fronting Fee, any
Optional Currency Fee or any Agent’s Fee and continuance thereof
for ten (10) days; or

                    Section 1.15.   Amendment to Section 9.2. Section 9.2 of the Existing
Credit Agreement is hereby amended and restated in its entirety as follows:

		
	 	         9.2         Amendments. No amendment or waiver of any provision of
this Agreement or the Notes, nor consent to any departure
therefrom by the Borrower shall be effective unless the same shall
be in writing and signed by the Borrower, the Agent and the
Required Banks, and then such amendment, waiver or consent shall
be effective only in the specific instance and for the specific
purpose for which given; provided, however, that no amendment,
waiver or consent, unless in writing and signed by the Agent and
all of the Banks, shall do any of the following: (a) except as
provided in Section 2.23, increase the Long Term Revolving Credit
Commitment of any Bank or the maximum aggregate principal amount
of the Long Term Revolving Credit Notes, (b) except as provided in
Section 2.23, increase the Short Term Revolving Credit Commitment
of any Bank or the maximum aggregate principal amount of the Short
Term Revolving Credit Notes, (c) reduce the principal of, alter
the formulas for calculating interest on, the Notes or reduce any
fees hereunder, (d) postpone any date fixed for any payment of
principal of, or interest on, the Notes, any Facility Fee, any
Letter of Credit Fee, any Fronting Fee, any Optional Currency Fee,
the Agent’s Fee, the Bid Rate Administration Fee, the Utilization
Fee or any of the obligations of the Borrower set forth in Article
II, (e) amend the definition of Required Banks, (f) amend this
Section 9.2 or (g) amend any section hereof which by its terms
requires consent of all of the Banks. No amendment modification
or waiver which would adversely affect the interest rights or
obligation of the Agent shall be made without the consent of the
Agent. In the case of any waiver or consent relating to any
provision of this Agreement, the parties shall be restored to
their former positions and rights hereunder (unless otherwise
expressly set forth therein), and the Event

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Exhibit (10)(xiii)

		
	 	of Default so waived or consented to shall be deemed to be cured
and not continuing; but no such waiver or consent shall extend to
any subsequent or other Event of Default or impair any right
consequent thereon.

                    Section 1.16.   Amendment to Bank Signature Pages. The Existing Credit
Agreement is hereby amended by deleting the information relating to each Bank’s
respective participation in the various commitments under the Existing Credit
Agreement and their respective addresses for notice and Euro-Rate Funding
purposes and substituting in replacement thereof all of the corresponding
information set for on each Bank’s signature page to this Amendment No. 5.

                    Section 1.17.   Amendment to Exhibit “F”. The Existing Credit Agreement is
hereby amended by deleting Exhibit “F” thereto in its entirety and substituting
in replacement thereof a reference Exhibit “F” hereto.

                    Section 1.18.   No Other Amendments. The amendments to the Existing Credit
Agreement set forth above do not either implicitly or explicitly alter, waive
or amend, except as expressly provided in this Amendment No. 5, the provisions
of the Existing Credit Agreement. The amendments set forth above do not waive,
now or in the future, compliance with any other covenant, term or condition to
be performed or complied with nor does it impair any rights or remedies of the
Banks or the Agent under the Existing Credit Agreement with respect to any such
violation.

ARTICLE II

BORROWER’S SUPPLEMENTAL REPRESENTATIONS

                    As an inducement to the Banks and the Agent to enter into this Amendment
No. 5, the Borrower hereby represents and warrants that:

                    Section 2.01.   Incorporation by Reference. The Borrower hereby repeats
herein for the benefit of the Banks and the Agent the representations and
warranties made by the Borrower in Article III of the Existing Credit
Agreement, as amended hereby, except that for purposes hereof such
representations and warranties shall be deemed to extend to and cover this
Amendment No. 5.

ARTICLE III

MISCELLANEOUS

                    Section 3.01.   Ratification of Terms. This Amendment No. 5 shall be
construed in connection with and as part of the Existing Credit Agreement; and
the Existing Credit Agreement is hereby amended and modified to include this
Amendment No. 5. Except as expressly amended by this Amendment No. 5, the
Existing Credit Agreement and each and every representation, warranty,
covenant, term and condition contained therein is specifically ratified and
confirmed.

                    Section 3.02.   References. All notices, communications, agreements,
certificates, documents or other instruments executed and delivered after the
execution and delivery of this Amendment No. 5 may refer to the Existing Credit
Agreement without making

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Exhibit (10)(xiii)

specific reference to this Amendment No. 5, but nevertheless all such
references shall include this Amendment No. 5 unless the context requires
otherwise.

                    Section 3.03.   Counterparts. This Amendment No. 5 may be executed in any
number of counterparts, and by the different parties hereto on separate
counterparts, each of which when so executed and delivered shall be an
original, but all of which together shall constitute one and the same
instrument. Delivery of an executed counterpart of a signature page to this
Amendment No. 5 by telecopier shall be effective as of delivery of a manually
executed counterpart of this Amendment No. 5.

                    Section 3.04.   Capitalized Terms. Except for proper nouns and as otherwise
defined herein, capitalized terms used herein shall have the meanings ascribed
to them in the Existing Credit Agreement, as amended hereby.

                    Section 3.05.   Conditions Precedent. It shall be a condition precedent to
the effectiveness of this Amendment No. 5 and to the amendment of terms of the
Existing Credit Agreement as herein set forth that:

                    (i)     The Agent shall have received on behalf of the Banks, on or before the
Amendment Effective Date (as hereinafter defined) the following items, each,
unless otherwise indicated, dated on or before the Amendment Effective Date and
in form and substance satisfactory to the Agent and its counsel:

                             (A)     A duly executed counterpart original of this Amendment No. 5;

                             (B)     A copy of the corporate action of the Borrower certified by the
Secretary or Assistant Secretary of the Borrower to authorize the execution and
delivery of, and performance under, this Amendment No. 5 and the other
Amendment No. 5 Loan Documents to which it is a party;

                             (C)     A certificate of the secretary or assistant secretary of the Borrower
certifying the names of the persons authorized to sign this Amendment No. 5 and
the other Amendment No. 5 Loan Documents to which it is a party, and all other
documents and certificates delivered hereunder together with the true
signatures of such persons;

                             (D)     A certificate of the Chief Financial Officer of the Borrower
certifying that the statements set forth in Section 3.05(ii) of this Amendment
No. 5, as of the Amendment No. 5 Closing Date, are true and correct; and

                             (E)     Except for events disclosed in the Borrower’s Annual Report on Form
10-K for the year ended December 31, 2000, and for Quarterly Reports on Form
10-Q for the quarters ended March 31, 2001, June 30, 2001 and September 30,
2001, no event has occurred to the Borrower which would reasonably be likely to
have a Material Adverse Effect on the Borrower; and there shall be delivered to
the Agent for the benefit of each Bank and the Agent a certificate dated the
Closing Date and signed by the Chief Executive Officer, President, Chief
Financial Officer or Vice President of the Borrower to such effect;

Page 10

 

Exhibit (10)(xiii)

                    (ii)     The following statements shall be true and correct on the Amendment
Effective Date and the Agent shall have received a certificate signed by an
authorized officer of the Borrower, dated the Amendment Effective Date, stating
that:

                              (A)     the representations and warranties contained in Section 2.01 of this
Amendment No. 5 and in the other Loan Documents, as amended hereby, with
respect to the Borrower are true and correct on and as of the Amendment
Effective Date as though made on and as of such date;

                              (B)     no Event of Default, or event which, with the passage of time or the
giving of notice or both, would become an Event of Default, has occurred and is
continuing, or would result from the execution of this Amendment No. 5;

                              (C)     the Borrower has in all material respects performed all agreements,
covenants and conditions required to be performed on or prior to the date
hereof under the Agreement and the other Loan Documents;

                    (iii)     For purposes of this Amendment No. 5, upon completion of the
conditions set forth above in this Section 3.05, the term “Amendment Effective
Date” shall mean, and the effective date of this Amendment No. 5 shall be
deemed to be, December 28, 2001.

                    (iv)     Payment to the Agent of all fees required by the Agent and the Banks
in connection with this Amendment.

                    Section 3.06.   Amendment Effective Date. From and after the Amendment
Effective Date, all references in the Existing Credit Agreement and each of the
other Loan Documents to the Agreement shall be deemed to be references to the
Existing Credit Agreement as amended hereby.

                    Section 3.07.   Certain Taxes. The Borrower agrees to pay, and save the
Agent and the Banks harmless from, all liability for any stamp or other taxes
which may be payable with respect to the execution of this Amendment No. 5, the
other Amendment No. 5 Loan Documents or any other documents, instruments or
transactions pursuant to or in connection herewith or therewith, which
obligation shall survive the termination of this Amendment No. 5.

                    Section 3.08.   Costs and Expenses. The Borrower hereby agrees to pay all
reasonable out-of-pocket costs and expenses of the Agent (including, without
limitation, the reasonable fees and the disbursements of the Agent’s special
counsel, Tucker Arensberg, P.C.) in connection with the preparation, execution
and delivery of this Amendment No. 5 and the related documents.

                    Section 3.09.   Severability. Any provision of this Amendment No. 5 which
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
enforceability without invalidating the remaining portions hereof or affecting
the validity or enforceability of such provision in any other jurisdiction.

                    Section 3.10.   Governing Law. Amendment No. 5 shall be a contract made
under and governed by the laws of the Commonwealth of Pennsylvania.

Page 11

 

Exhibit (10)(xiii)

                    Section 3.11.   Headings. The headings of this Amendment No. 5 are for
purposes of reference only and shall not limit or otherwise affect the meaning
thereof.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

Page 12

 

Exhibit (10)(xiii)

         IN WITNESS WHEREOF, the parties hereto, with the intent to be legally
bound hereby, have caused this Amendment No. 5 to be duly executed by their
proper and duly authorized officers as of, and effective nunc pro tunc as of
the day and year first above written.

	 	 	 	 	 	 	 	 	 
	ATTEST	 	 	 	(SEAL)	 	COOPER TIRE & RUBBER COMPANY,

a Delaware corporation
	
	
	
	

	 	 	 	 	 	 	 	 	 
	
	
	
	

	By:

Name:

Title:	 	
/s/ Kathy A. Brumbaugh

Kathy A. Brumbaugh

Executive Legal Secretary
	 	 	 	By:

Name:

Title:
	 	/s/ P.G. Weaver

P.G. Weaver

Vice President and CFO
	
	
	
	

	 	 	 	 	 	 	 	 	 
	
	
	
	

	By:

Name:

Title:	 	
/s/ Richard N. Jacobson

Richard N. Jacobson

Assistant Secretary
	 	 	 	By:

Name:

Title:
	 	/s/ C.F. Nagy

C.F. Nagy

Assistant Treasurer
	
	
	
	

	 	 	 	 	 	 	 	 	 
	
	
	
	

	 	 	 	 	 	 	PNC BANK, NATIONAL ASSOCIATION,

in its capacity as Agent
	
	
	
	

	 	 	 	 	 	 	 	 	 
	
	
	
	

	 	 	 	 	 	 	By:

Name:

Title:
	 	/s/ Joseph G. Moran

Joseph G. Moran

Vice President

Page 13

 

Exhibit (10)(xiii)

         IN WITNESS WHEREOF, intending to be legally bound hereby, the undersigned
Bank has caused this Amendment No. 5 by and among COOPER TIRE & RUBBER COMPANY
as the Borrower, the Financial Institutions Party thereto, as the Banks, and
PNC BANK, NATIONAL ASSOCIATION, as the Agent, to be executed by its duly
authorized officers as of the date first above written.

	 	 	 
	Maximum Dollar Amount of Long Term
Revolving Credit Commitment	 	
NATIONAL CITY BANK
	
	
	
	

	$23,214,285.72	 	 
	
	
	
	

	Long Term Revolving Credit Commitment
Percentage	 	
By:         /s/ James Ritchie

Name:    James Ritchie

Title:      Vice President
	
	
	
	

	18.5714285714%	 	 
	
	
	
	

	Maximum Dollar Amount of Short Term
Revolving Credit Commitment	 	 
	
	
	
	

	$23,214,285.72	 	 
	
	
	
	

	Short Term Revolving Credit Commitment
Percentage	 	 
	
	
	
	

	18.5714285714%	 	 

Address for notice purposes:

National City Bank

1900 East Ninth Street, 7th Floor LOC 2077

Cleveland, OH 44114

Attention:      James Ritchie

Title:               Vice President

Telephone:    (216) 222-9918

Facsimile:       (216) 222-7005

Address for Euro-Rate Funding if different from above:

National City Bank

1900 East Ninth Street, 7th Floor LOC 2077

Cleveland, OH 44114

Attention:      James Ritchie

Title:               Vice President

Telephone:    (216) 222-9918

Facsimile:       (216) 222-7005

Page 14

 

Exhibit (10)(xiii)

         IN WITNESS WHEREOF, intending to be legally bound hereby, the undersigned
Bank has caused this Amendment No. 5 by and among COOPER TIRE & RUBBER COMPANY
as the Borrower, the Financial Institutions Party thereto, as the Banks, and
PNC BANK, NATIONAL ASSOCIATION, as the Agent, to be executed by its duly
authorized officers as of the date first above written.

	 	 	 
	Maximum Dollar Amount of Long Term Revolving
Credit Commitment	 	
BANK ONE, MICHIGAN
	
	
	
	

	$16,071,428.57	 	 
	
	
	
	

	Long Term Revolving Credit Commitment Percentage	 	
By:        /s/ Jean Phelan

Name:   Jean Phelan

Title:     Director
	
	
	
	

	12.8571428571%	 	 
	
	
	
	

	Maximum Dollar Amount of Short Term Revolving
Credit Commitment	 	 
	
	
	
	

	$16,071,428.57	 	 
	
	
	
	

	Short Term Revolving Credit Commitment Percentage	 	 
	
	
	
	

	12.8571428571%	 	 

Address for notice purposes:

Bank One, Michigan

611 Woodward Avenue

Detroit, MI 48226

Attention:      Jean Phelan

Title:               Director

Telephone:    (313) 225-3349

Facsimile:       (313) 226-0855

Address for Euro-Rate Funding if different from above:

	 	 	 	 	 
	
	 	 
	
	
	
	

	
	 	 
	
	
	
	

	
	 	 
	
	
	
	

	Telephone:	 	
 

	 	 
	
	
	
	

	Facsimile:	 	
 

	 	 
	
	
	
	

	Telex:	 	
 

	 	 

Page 15

 

Exhibit (10)(xiii)

         IN WITNESS WHEREOF, intending to be legally bound hereby, the undersigned
Bank has caused this Amendment No. 5 by and among COOPER TIRE & RUBBER COMPANY
as the Borrower, the Financial Institutions Party thereto, as the Banks, and
PNC BANK, NATIONAL ASSOCIATION, as the Agent, to be executed by its duly
authorized officers as of the date first above written.

	 	 	 
	Maximum Dollar Amount of Long Term
Revolving Credit Commitment	 	
PNC BANK, NATIONAL ASSOCIATION
	
	
	
	

	$26,785,714.29	 	 
	
	
	
	

	Long Term Revolving Credit Commitment
Percentage	 	
By:       /s/ Joseph G. Moran

Name:   Joseph G. Moran

Title:    Vice President
	
	
	
	

	21.4285714286%	 	 
	
	
	
	

	Maximum Dollar Amount of Short Term
Revolving Credit Commitment	 	 
	
	
	
	

	$26,785,714.29	 	 
	
	
	
	

	Short Term Revolving Credit Commitment
Percentage	 	 
	
	
	
	

	21.4285714286%	 	 

Address for notice purposes:

PNC Bank, NA

249 Fifth Avenue

P2 – PTPP-03-1

Pittsburgh, PA 15222

Attention:      Peggy Collier

Title:

Telephone:    (412) 762-7946

Facsimile:       (412) 768-4586

Address for Euro-Rate Funding if different from above:

	 	 	 	 	 
	
	 	 
	
	
	
	

	
	 	 
	
	
	
	

	
	 	 
	
	
	
	

	Telephone:	 	
 

	 	 
	
	
	
	

	Facsimile:	 	
 

	 	 
	
	
	
	

	Telex:	 	
 

	 	 

Page 16

 

Exhibit (10)(xiii)

         IN WITNESS WHEREOF, intending to be legally bound hereby, the undersigned
Bank has caused this Amendment No. 5 by and among COOPER TIRE & RUBBER COMPANY
as the Borrower, the Financial Institutions Party thereto, as the Banks, and
PNC BANK, NATIONAL ASSOCIATION, as the Agent, to be executed by its duly
authorized officers as of the date first above written.

	 	 	 
	Maximum Dollar Amount of Long Term Revolving
Credit Commitment	 	
J P MORGAN CHASE BANK
	
	
	
	

	$10,714,285.71	 	 
	
	
	
	

	Long Term Revolving Credit Commitment
Percentage	 	
By:        /s/ Henry W. Centa

Name:   Henry W. Centa

Title:     Vice President
	
	
	
	

	8.5714285714%	 	 
	
	
	
	

	Maximum Dollar Amount of Short Term Revolving
Credit Commitment	 	 
	
	
	
	

	$10,714,285.71	 	 
	
	
	
	

	Short Term Revolving Credit Commitment
Percentage	 	 
	
	
	
	

	8.5714285714%	 	 

Address for notice purposes:

J P MORGAN CHASE BANK

250 West Huron Road

Cleveland, OH 44113-1451

Attention:      Henry W. Centa

Title:               Vice President

Telephone:    (216) 479-2534

Facsimile:       (216) 479-2732

Address for Euro-Rate Funding if different from above:

	 	 	 	 	 
	
	 	 
	
	
	
	

	
	 	 
	
	
	
	

	
	 	 
	
	
	
	

	Telephone:	 	
 

	 	 
	
	
	
	

	Facsimile:	 	
 

	 	 
	
	
	
	

	Telex:	 	
 

	 	 

Page 17

 

Exhibit (10)(xiii)

         IN WITNESS WHEREOF, intending to be legally bound hereby, the undersigned
Bank has caused this Amendment No. 5 by and among COOPER TIRE & RUBBER COMPANY
as the Borrower, the Financial Institutions Party thereto, as the Banks, and
PNC BANK, NATIONAL ASSOCIATION, as the Agent, to be executed by its duly
authorized officers as of the date first above written.

	 	 	 
	Maximum Dollar Amount of Long Term
Revolving Credit Commitment	 	
THE BANK OF NEW YORK
	
	
	
	

	$10,714,285.71	 	 
	
	
	
	

	Long Term Revolving Credit Commitment
Percentage	 	
By:        /s/ Edward J. Dougherty

Name:   Edward J. Dougherty

Title:     Vice President
	
	
	
	

	8.5714285714%	 	 
	
	
	
	

	Maximum Dollar Amount of Short Term
Revolving Credit Commitment	 	 
	
	
	
	

	$10,714,285.71	 	 
	
	
	
	

	Short Term Revolving Credit Commitment
Percentage	 	 
	
	
	
	

	8.5714285714%	 	 

Address for notice purposes:

The Bank of New York

One Wall Street

Automotive Division, 22nd Floor

New York, NY 10286

Attention:      Edward J. Dougherty

Title:               Vice President

Telephone:    (212) 635-7842

Facsimile:       (212) 635-6434

Address for Euro-Rate Funding if different from above:

	 	 	 	 	 
	
	 	 
	
	
	
	

	
	 	 
	
	
	
	

	
	 	 
	
	
	
	

	Telephone:	 	
 

	 	 
	
	
	
	

	Facsimile:	 	
 

	 	 
	
	
	
	

	Telex:	 	
 

	 	 

Page 18

 

Exhibit (10)(xiii)

         IN WITNESS WHEREOF, intending to be legally bound hereby, the undersigned
Bank has caused this Amendment No. 5 by and among COOPER TIRE & RUBBER COMPANY
as the Borrower, the Financial Institutions Party thereto, as the Banks, and
PNC BANK, NATIONAL ASSOCIATION, as the Agent, to be executed by its duly
authorized officers as of the date first above written.

	 	 	 
	Maximum Dollar Amount of Long Term
Revolving Credit Commitment	 	
BANK OF AMERICA, N.A.
	
	
	
	

	$23,214,285.72	 	 
	
	
	
	

	Long Term Revolving Credit Commitment
Percentage	 	
By:        /s/ Matthew J. Reilly

Name:   Matthew J. Reilly

Title:     Vice President
	
	
	
	

	18.5714285714%	 	 
	
	
	
	

	Maximum Dollar Amount of Short Term
Revolving Credit Commitment	 	 
	
	
	
	

	$23,214,285.72	 	 
	
	
	
	

	Short Term Revolving Credit Commitment
Percentage	 	 
	
	
	
	

	18.5714285714%	 	 

Address for notice purposes:

Bank of America, N.A.

231 South LaSalle Street

Chicago, IL 60697

Attention:      Matthew J. Reilly

Title:               Vice President

Telephone:    (312) 828-7131

Facsimile:       (312) 987-0303

Address for Euro-Rate Funding if different from above:

Bank of America Credit Services

101 North Tryon Street

Charlotte, NC 28255

Attention:      Carole Greene

Title:               Customer Service Representative

Telephone:    (704) 386-9875

Facsimile:       (704) 409-0069

Page 19

 

Exhibit (10)(xiii)

         IN WITNESS WHEREOF, intending to be legally bound hereby, the undersigned
Bank has caused this Amendment No. 5 by and among COOPER TIRE & RUBBER COMPANY
as the Borrower, the Financial Institutions Party thereto, as the Banks, and
PNC BANK, NATIONAL ASSOCIATION, as the Agent, to be executed by its duly
authorized officers as of the date first above written.

	 	 	 
	Maximum Dollar Amount of Long Term
Revolving Credit Commitment	 	
FIFTH THIRD BANK
	
	
	
	

	$7,142,857.14	 	 
	
	
	
	

	Long Term Revolving Credit Commitment
Percentage	 	
By:        /s/ Jeffrey C. Shrader

Name:   Jeffery C. Shrader

Title:     Vice President
	
	
	
	

	5.7142857143%	 	 
	
	
	
	

	Maximum Dollar Amount of Short Term
Revolving Credit Commitment	 	 
	
	
	
	

	$7,142,857.14	 	 
	
	
	
	

	Short Term Revolving Credit Commitment
Percentage	 	 
	
	
	
	

	5.7142857143%	 	 

Address for notice purposes:

337 South Main Street

Findlay, Ohio 45840

Attention:      Jeffery C. Shrader

Title:               Vice President

Telephone:    (419) 424-8504

Facsimile:       (419) 424-8547

Address for Euro-Rate Funding if different from above:

	 	 	 	 	 
	
	 	 
	
	
	
	

	
	 	 
	
	
	
	

	
	 	 
	
	
	
	

	Telephone:	 	
 

	 	 
	
	
	
	

	Facsimile:	 	
 

	 	 
	
	
	
	

	Telex:	 	
 

	 	 

Page 20

 

Exhibit (10)(xiii)

         IN WITNESS WHEREOF, intending to be legally bound hereby, the undersigned
Bank has caused this Amendment No. 5 by and among COOPER TIRE & RUBBER COMPANY
as the Borrower, the Financial Institutions Party thereto, as the Banks, and
PNC BANK, NATIONAL ASSOCIATION, as the Agent, to be executed by its duly
authorized officers as of the date first above written.

	 	 	 
	Maximum Dollar Amount of Long Term
Revolving Credit Commitment	 	
SUNTRUST BANK
	
	
	
	

	$7,142,857.14	 	 
	
	
	
	

	Long Term Revolving Credit Commitment
Percentage	 	
By:        /s/ William Humphries

Name:   William Humphries

Title:     Director
	
	
	
	

	5.7142857143%	 	 
	
	
	
	

	Maximum Dollar Amount of Short Term
Revolving Credit Commitment	 	 
	
	
	
	

	$7,142,857.14	 	 
	
	
	
	

	Short Term Revolving Credit Commitment
Percentage	 	 
	
	
	
	

	5.7142857143%	 	 

Address for notice purposes:

SunTrust Bank

303 Peachtree Street

3rd Floor, Mail Code: 1928

Atlanta, GA 30308

Attention:      William Humphries

Title:                Director

Address for Euro-Rate Funding if different from above:

	 	 	 	 	 
	
	 	 
	
	
	
	

	
	 	 
	
	
	
	

	
	 	 
	
	
	
	

	Telephone:	 	
 

	 	 
	
	
	
	

	Facsimile:	 	
 

	 	 
	
	
	
	

	Telex:	 	
 

	 	 

Page 21

 

Exhibit (10)(xiii)

EXHIBIT “F”

REVISED

COMPLIANCE CERTIFICATE

         This Compliance Certificate is delivered pursuant to the terms of that
certain Amended and Restated Credit Agreement dated as of September 1, 2000
(the Amended and Restated Credit Agreement, together with all extensions,
renewals, amendments, substitutions, or replacements thereto or thereof, the
“Agreement”), by and among COOPER TIRE & RUBBER COMPANY (the “Borrower”), the
Banks party thereto (the “Banks”), and PNC BANK, NATIONAL ASSOCIATION, as agent
for the Banks (the “Agent”). All defined terms used herein shall have the same
meanings herein as in the Agreement. The undersigned Authorized Officer of the
Borrower hereby certifies as to the Borrower and its Subsidiaries, as follows:

         1.     The undersigned has reviewed the terms of the Agreement and has made,
or caused to be made under his/her supervision, a review of the material
transactions and conditions of the Borrower and its Subsidiaries during the
accounting period covered by the financial statements being delivered
simultaneously herewith.

         2.     Such review (except as noted below) has not disclosed the existence of,
and the undersigned does not have knowledge of, as of the date hereof, any
condition or event which constitutes an Event of Default or which, after notice
or lapse of time or both, would constitute an Event of Default.

         (In the event an Event of Default or an event or condition that could
become an Event of Default does exist, a discussion thereof and the proposed
action relative thereto would be inserted at this point.)

         3.     The undersigned has prepared, or caused to be prepared under his/her
supervision, the computations of financial covenant compliance set forth on
Schedule 1 attached hereto and such calculations are true and accurate in all
material respects.

         4.     [Year end certificate only] The Borrower and its Subsidiaries have in
force insurance with responsible insurance companies on such of their
respective properties, that is adequate in nature and amount and which complies
with the Borrower’s obligations pursuant to Section 4.5 of the Agreement.

	 	 	 	 	 	 	 
	 	 	 	 	COOPER TIRE & RUBBER COMPANY
	
	
	
	

	 	 	 	 	 	 	 
	
	
	
	

	Dated:	 	
 

	 	By:
 

Name:
	 	 

 

Page 22

 

Exhibit (10)(xiii)

SCHEDULE 1

TO COMPLIANCE CERTIFICATE

COMPUTATIONS UNDER AMENDED AND RESTATED CREDIT AGREEMENT

FISCAL QUARTER YEAR ENDED ___________, 200__

5.1     PERCENTAGE OF CONSOLIDATED INDEBTEDNESS TO CONSOLIDATED CAPITALIZATION

	 	 	 	 	 	 	 	 	 	 	 	 
	Consolidated Indebtedness:

	 	 	 	 	 	 	 	 
	
	
	
	

	 	 	 	Long-Term Revolving Credit Loans
	 	$	 	 	 	 	 	 
	 
	 	 	
	 
	 	 	 	Short-Term Revolving Credit Loans
	 	$	 	 	 	 	 	 
	 
	 	 	
	 
	 	 	 	Bid Rate Loans
	 	$	 	 	 	 	 	 
	 
	 	 	
	 
	 	 	 	Swingline Loans
	 	$	 	 	 	 	 	 
	 
	 	 	
	 
	 	 	 	Commercial Paper Notes
	 	$	 	 	 	 	 	 
	 
	 	 	
	 
	 	 	 	Notes Payable
	 	$	 	 	 	 	 	 
	 
	 	 	
	 
	 	 	 	7-5/8% Notes Due 2027
	 	$	 	 	 	 	 	 
	 
	 	 	
	 
	 	 	 	Capitalized Lease Obligations
	 	$	 	 	 	 	 	 
	 
	 	 	
	 
	 	 	 	Other Long-Term Indebtedness
	 	$	 	 	 	 	 	 
	 
	 	 	
	 
	 	 	 	Other Short-Term Indebtedness
	 	$	 	 	 	 	 	 
	 
	 	 	
	 
	 	 	 	Guarantees
	 	$	 	 	 	 	 	 
	 
	 	 	
	 
	 	Consolidated Capitalization:

	 	 	 	 	 	 	 	 
	
	
	
	

	 	Stockholders’ Equity as reported
	 	$	 	 	 	 	 	 
	 
	 	 	
	 
	 	 	Add: First Quarter 2002 Special Charge
	 	$	 	 	 	 	 	 
	 
	 	 	
	 
	 	 	Add: Balance of cumulative currency
adjustments required by GAAP
	 	$	 	 	 	 	 	 
	 
	 	 	
	 
	 	Plus: Consolidated Indebtedness
(as determined above)
	 	$	 	 	 	 	 	 
	 
	 	 	
	 
	 	Total Consolidated Capitalization
	 	$	 	 	 	 	 	 
	 
	 	 	
	 
	 	Consolidated Indebtedness as a percentage

of Total Consolidated Capitalization
	 	 	
	%	 
	 
	 	 		 	 	 	 	 
	 	Maximum Permissible Percentage
	 	 	
	%	*
	 
	 	 		 	 

	*	 	See Section 5.1 of the Agreement for % applicable for the
Fiscal Quarter in question

5.2     FIXED CHARGE COVERAGE RATIO

	 	 	 	 	 	 
	 	 	Twelve Months Ended
	 	 	 	 ___________, 200__
	 
	Consolidated Net Income as reported
	$	 	 	 
	 
	 	

	 	Add: First Quarter 2002 Special Charge **
	$	 	 	 
	 
	 	

	 	Add: Pre-tax non-cash charges permitted per
definition of “Consolidated Net Income”
	 	 	 	 
	
	
	
	

	 	Add: Provision for income taxes
	$	 	 	 
	 
	 	

	 	Minus: Non-cash gains
	$	 	 	 
	 
	 	

	 	Add: Third Quarter 2001 Special Charge***
	$	 	 	 
	 
	 	

	**	 	applies for Fiscal Quarters ending in 2002 only

Page 23

 

Exhibit (10)(xiii)

SCHEDULE 1

TO COMPLIANCE CERTIFICATE

	 	 	 	 	 	 	 	 	 	 
	Consolidated income before income taxes and certain
non-cash charges less non-cash gains
	 	$	 	 	 	 	 	 
	 
	 	 	
	 	 
	Fixed Charges:
	 	 	 	 	 	 	 	 
	
	
	
	

	 	Interest expense
	 	$	 	 	 	 	 	 
	 
	 	 	
	 	 
	 	Rentals
	 	$	 	 	 	 	 	 
	 
	 	 	
	 	 
	 	Less: intercompany items of interest and rentals
	 	$	 	 	 	 	 	 
	 
	 	 	
	 	 
	Total Fixed Charges
	 	$	 	 	 	 	 	 
	 
	 	 	
	 	 
	Consolidated Net Income Available for Fixed Charges:
	 	 	 	 	 	 	 	 
	
	
	
	

	 	Amount
	 	$	 	 	 	 	 	 
	 
	 	 	
	 	 
	Consolidated Net Income Available for Fixed
Charges as a Percent of Fixed Charges
	 	 	 	 	 	 	%	 
	 
	 	 	
	 	 
	Maximum Permissible Percentage
	 	 	 	 	 	 	%	****
	 
	 	 	
	 	 

	***	 	For the Fiscal Quarters ending September 30, 2001, December 31, 2001,
March 31, 2002 and June 30, 2002 add back the Third Quarter 2001
Special Charge
	
	
	
	

	****	 	See Section 5.2 of the Agreement for % applicable Fiscal Quarter

Page 24EX-10(XV)-Agrmnt Dated 11/14/01

 

Exhibit (10)(xv)

AGREEMENT

     I, William S. Klein, on my behalf and on behalf of my successors, assigns,
heirs, executors, legal representatives and administrators, who shall be bound
hereby, do freely enter into this Agreement (“the Agreement”) with Cooper Tire
& Rubber Company, a Delaware corporation (“Cooper”), and do hereby agree that
my undertakings and obligations as set forth herein shall also extend to the
subsidiaries and affiliates of Cooper, and to all of its officers, directors,
agents, employees, successors, assigns and legal representatives (collectively,
the “Company”).

	 	1.	 	In consideration for the benefits set forth on the attached
Exhibit A, I hereby agree to relinquish my positions as Vice President
of Cooper and Executive Vice President, of Cooper’s Tire Group,
effective November 14, 2001, and agree to retire from employment with
the Company on February 9, 2002. I agree that payments of base salary
to me will cease on November 14, 2001, except, however, that any bonus
for the 2001 year to which I am entitled under the annual bonus plan
applicable to me shall be based upon my 2001 annualized level of base
salary. During the remaining period of my employment, I will not be
required to perform any duties except that the undertaking set forth
in Paragraph 3(b) shall be applicable during such period. Except as
specifically set forth on Exhibit A, all benefits provided to me as an
executive officer of the Company, including but not limited to my
participation in the Company’s Change in Control Severance Pay Plan,
shall cease as of November 14, 2001, and I shall not be entitled to
any new awards under the annual bonus plan, Long-Term Incentive
(Performance Cash) Plan, or stock option plans after such date.
	 
	 	2.	 	In consideration for my undertakings and obligations set forth in
Paragraph 3 of this Agreement, Cooper agrees, in addition to providing
the benefits described on Exhibit A, to make a lump sum payment to me
in the amount of $375,000. This payment will be made to me within
five days after the Effective Date, as defined in Paragraph 11 of this
Agreement. Such payment will be subject to such deductions as are
required by federal and state law. Cooper shall issue to its employees
a statement concerning my retirement, as set forth on Exhibit B.
Cooper shall not issue the statement to persons outside Cooper, except
as may be required by law.
	 
	 	3.	 	In consideration for the payment described in Paragraph 2 of this
Agreement and the benefits set forth on the attached Exhibit A, I
agree to the following:

	 	 	(a)	 	I will deliver to the Company, within five days
after the Effective Date, the personal computer, fax machine,
cell phone, Company vehicle, and any other items of personal
property provided to me by Cooper, plus all papers, documents
and other materials in my possession or under my control,
other than those which are generally available to the public,
which relate to the Company’s business, regardless of the
origin of such documents, or whether they contain confidential

Page 1

 

Exhibit (10)(xv)

	 	 	 	or proprietary information.
	 
	 	(b)	 	I agree that I will provide the Company with such
assistance as it requests for any purpose related to those
aspects of the business over which I had responsibility or
knowledge during the period of my employment at Cooper,
provided that such knowledge cannot reasonably be obtained
from any other source, and provided that this undertaking
shall not require me to perform consulting services that could
be performed by another party.
	 
	 	(c)	 	I hereby knowingly and voluntarily release and
forever discharge the Company from all claims, demands,
actions and causes of action, damages, costs, payments and
expenses of every kind, nature or description which may exist
as of the Effective Date, whether known or unknown, which I
now have or may have had from, upon, or by reason of any cause
whatsoever (“claims”) against the Company, including, but not
limited to: (i) any and all claims arising out of or relating
to my employment by or service with Cooper, my relinquishment
of my position as an executive officer of the Company and my
retirement from Cooper; (ii) any and all claims of
discrimination, including, but not limited to all claims under
the Age Discrimination in Employment Act of 1967, 29 U.S.C.
Sec. 621 to 634; the Civil Rights Act of 1871, 42 U.S.C. Sec.
1981; the Civil Rights Act of 1964, 44 U.S.C. Sec. 2000e, et
seq.; the Americans with Disabilities Act, 42 U.S.C. Sec.
12111, et seq.; the employment laws and regulations of the
State of Ohio; and/or any claims growing out of any legal
restrictions on Cooper’s right to terminate its employees; and
(iii) any and all claims of wrongful or unjust discharge or
breach of any contract or promise, express or implied. This
release shall not extend to any vested rights which I may have
under the qualified retirement plans of Cooper in which I was
participating immediately prior to my retirement.

	4.	 	Neither party hereto will (i) make any public statement to the
media or, directly or indirectly, provide information of any kind,
whether written or non-written, to, or otherwise collaborate in any
way in the taking of any action with, any third party concerning the
other party or any aspect of the other party or take any action, or
make any statements which could reasonably be construed as being
contrary to the interest of the other party, including with respect to
Cooper, its senior management or its Board of Directors, without first
receiving the written approval of the other party, which, in the case
of Cooper will require the written approval of the Chairman of the
Board of Directors of Cooper, or (ii) take action or make any
statements which could cause the other party any embarrassment or
humiliation or otherwise reflect negatively on the other party or
cause the other party to be held in disrepute; except, however, in the
event either party hereto is compelled by legal process to testify or
produce documents relating to the matters specified in this paragraph
such party shall be relieved from the obligations imposed upon it by
this paragraph for such testimony, information and/or documents
legally compelled. The party compelled 

Page 2

 

Exhibit (10)(xv)

	 	 	to testify or produce
documents shall provide immediate written notice of such fact to the
other party, which notice in the case of Cooper shall be sent to the
attention of the General Counsel, 701 Lima Avenue, Findlay, Ohio
45840, in order to give the other party a reasonable opportunity to
object to the disclosure of such information or documents or to
otherwise seek to limit the disclosure of such information or
documents.
	 
	5.	 	Except for any disclosure of this Agreement that is required to
be made pursuant to the federal securities laws, the terms and
conditions of this Agreement will remain confidential and will not be
discussed with, or revealed to, any persons except my family, attorney
and/or advisor, and neither party will cause this Agreement or any of
its terms to be published or publicized in any manner whatsoever.
	 
	6.	 	The parties hereto agree that in the event of a breach of any
undertaking set forth in Paragraphs 4 or 5, the non-breaching party
shall have the right to seek any injunctive relief available to it
and, recognizing that monetary damages for any such breach may not be
readily ascertainable, the breaching party shall immediately pay to
the non-breaching party, Two Hundred Fifty Thousand Dollars
($250,000.00), AS LIQUIDATED DAMAGES AND NOT AS A PENALTY, for said
breach. Any breach of such provisions shall not nullify this
Agreement, which shall remain in full force and effect thereafter. It
is understood and agreed that Cooper has no reasonable means in which
to regulate and control the actions of its non-senior management
employees with respect to the responsibilities and obligations arising
out of the provisions of Paragraphs 4 and 5 herein. Therefore,
Cooper’s liability hereunder, shall be limited to breaches, if any, of
Paragraphs 4 and 5 herein by Cooper’s senior management and/or
Cooper’s Board of Directors and shall not arise out of such breaches
by Cooper agents and/or non-senior management employees. The
provisions contained in Paragraphs 4 and 5 shall remain in full force
and effect for a period of thirty (30) months following the Effective
Date.
	 
	7.	 	I agree that this Agreement is not intended to nullify my
agreement to maintain as confidential the trade secrets, patents and
other proprietary information of the Company, and not to compete with
Cooper, as set forth in a written agreement dated February 23, 1970,
which agreement shall remain in full force and effect notwithstanding
the execution of this Agreement.
	 
	8.	 	This Agreement includes a compromise of any and all claims that
could be made by me relating to my employment and/or separation from
employment and that the payment provided is not to be construed as an
admission of liability on the part of the Company, by whom liability
is expressly denied.
	 
	9.	 	I acknowledge that I have been advised in writing to consult with
an attorney prior to executing this Agreement.

Page 3

 

Exhibit (10)(xv)

	 	10.	 	I understand that I have 28 days from October 17, 2001, the date
on which I received this Agreement, to consider the terms of this
Agreement, and I acknowledge that I am not obligated but may execute
this Agreement at any time during the 28-day period.
	 
	 	11.	 	This Agreement does not become effective or enforceable until
seven days after the date on which I execute this Agreement (the
“Effective Date”). I understand that during the seven-day period
following the execution of this Agreement, I may revoke this Agreement
in its entirety. If the Company has not received written notice of
revocation, directed to Attn: D. Richard Stephens, Cooper Tire &
Rubber Company, 701 Lima Avenue, Findlay, Ohio 45840 within the
seven-day period, this Agreement shall be fully enforceable, and the
consideration to be paid by the Company shall then commence.
	 
	 	12.	 	If any provision of this Agreement is declared invalid or
unenforceable, the remaining portions of the Agreement shall not be
affected thereby and shall be enforceable.
	 
	 	13.	 	I have carefully read and fully understand all the terms and
conditions of this Agreement

     IN WITNESS WHEREOF, I have executed this Agreement on the date written
below and it shall be effective as of the Effective Date indicated below.

NOTICE TO EMPLOYEE: CONSULT WITH AN ATTORNEY BEFORE EXECUTING THIS AGREEMENT.

	 	 	 
	/s/ William S. Klein	 	Date     11/14/01
	
	 	

	(Employee Signature)	 	
	 
	 
	/s/ Dennis M.Fitzgerald	 	Date:     
	
	 	

	Witness	 	
	 
	 
	Effective
Date:  
	 	 

Page 4

 

Exhibit (10)(xv)

EXHIBIT A

BENEFITS TO WHICH

EMPLOYEE IS ENTITLED

	1.	 	You shall continue to be entitled for the remainder of 2001 to
those employee welfare benefits currently being received by you for
which all salaried employees of Cooper are eligible. You shall not be
required to pay premiums for any welfare benefit presently being
received by you, for the period from November 14 through December 31,
2001.
	 
	 	 	For the period of 2002 during which you are an employee, you shall
be entitled to those benefits available under the Company’s Health
& Well-Being Plan which you elect to receive. No “flex allowance”
as defined in that plan will be provided to you and you will not be
required to pay premiums for any coverage so long as you elect the
“Basic” options under the medical/prescription drug and dental
plans, and the “1x base salary” option under the life insurance
plan. Your base salary will be considered to be $355,000 for life
insurance plan purposes. You will be required to pay any
incremental premiums for the “Premium” options under those plans.
	 
	2.	 	Upon your retirement, you shall have whatever right to
post-retirement welfare plan coverage, including medical coverage,
that is provided from time to time to salaried employees who retire at
your age and with your years of service.
	 
	3.	 	For purposes of calculating your payment under the long-term
incentive compensation (Performance Cash) plan for the performance
periods which include the year 2001, you shall be considered to have
remained an employee for the entire year 2001 at the annualized level
of base salary applicable to you immediately prior to your retirement.
No award will be made to you under the plan for the performance
period which begins in 2002.
	 
	4.	 	Your pension benefit under the Salaried Employees’ Retirement
Plan will be calculated based upon a retirement date of November 14,
2001. Your total pension benefit, calculated without regard to the
limitations on qualified pension benefits which are set forth in
Sections 401(a)(17) and 415 of the Internal Revenue Code, shall be
calculated as if you had remained an employee through February 9,
2002, and had received the lump sum payment described in Paragraph 2
ratably from November 14, 2001 through February 9, 2002. The amount
of the non-qualified portion of your total pension benefit, based upon
figures available as of November 14, 2001, shall be paid to you in a
lump sum (subject to any deductions required by federal or state tax
laws) within five days after the Effective Date. Any upward
adjustments reflecting amounts paid to you in the future with respect
to awards previously granted to you under the Long-Term Incentive
(Performance Cash) Plan 

Page 5

 

Exhibit (10)(xv)

	 	 	will be paid to you promptly upon their
determination.
	 
	5.	 	No stock options will be granted to you after the Effective Date.
To the extent not exercised prior to February 9, 2002, the options
labeled on the attached Stock Option Appendix as “Incentive Stock
Options” may be exercised for up to three months after February 9,
2002 (except that the incentive stock option granted July 20, 1992
must be exercised prior to July 20, 2002). The options labeled on the
attached Stock Option Appendix as “Non-Qualified Stock Options” may be
exercised for up to five years after February 9, 2002.
	 
	 	 	If you die before the expiration of the period when you may
exercise any option, your heirs or legal representatives will have
the lesser of twelve months or the remaining term of the option, to
exercise the option.
	 
	 	 	Option installments which had not yet become exercisable as of
February 9, 2002 will be forfeited.

Page 6

 

Exhibit (10)(xv)

William S. Klein

STOCK OPTION APPENDIX

INCENTIVE STOCK OPTION

	 	 	 	 	 	 	 	 	 
	 	 	VESTED	 	 	 	 
	GRANT DATE	 	SHARES	 	PRICE
		 		 	
	7/20/92
	 	 	2,000	 	 	$	24.9375	 
	 
	7/19/93
	 	 	2,300	 	 	$	25.0000	 
	 
	7/18/94
	 	 	2,300	 	 	$	24.5000	 
	 
	7/24/95
	 	 	2,600	 	 	$	24.1250	 
	 
	7/22/96
	 	 	3,800	 	 	$	18.5000	 
	 
	7/22/97
	 	 	6,146	 	 	$	24.5000	 
	 
	7/21/98
	 	 	5,493	 	 	$	20.5625	 
	 
	7/20/99
	 	 	4,415	 	 	$	22.9375	 
	 
	2/8/00
	 	 	3,971*	 	 	$	12.5938	 

	 	 	     
	 
	*	 	An additional 3,970 shares of this option grant will vest on February 8,
2002.

In addition, 3,712 shares of the option granted to you on February 8, 2001 will
vest on February 8, 2002 @ $13.47 per share. The remaining 3,711 shares of
that option grant will be forfeited.

Page 7

 

Exhibit (10)(xv)

William S. Klein

STOCK OPTION APPENDIX

NON-QUALIFIED STOCK OPTION

	 	 	 	 	 	 	 	 	 
	 	 	VESTED	 	 	 	 
	GRANT DATE	 	SHARES	 	PRICE
		 		 	
	7/22/97
	 	 	854	 	 	$	24.5000	 
	 
	7/21/98
	 	 	4,107	 	 	$	20.5625	 
	 
	7/20/99
	 	 	7,585	 	 	$	22.9375	 
	 
	2/8/00
	 	 	11,030*	 	 	$	12.5938	 

	 	 	     
	 
	*	 	An additional 11, 029 shares of the option grant will vest on February 8,
2002.

In addition, 11,289 shares of the option granted to you on February 8, 2001
will vest on February 8, 2002 @ 13.47 per share. The remaining 11,288 shares
will be forfeited.

Page 8

 

Exhibit (10)(xv)

EXHIBIT B

     William S. Klein has announced his retirement from service with Cooper
Tire & Rubber Company. Bill’s retirement was accepted with appreciation and
recognition of thirty-two (32) years of exemplary service to Cooper Tire &
Rubber Company.

     While in Cooper’s Tire Division, William S. Klein held many positions of
increasing responsibility including manufacturing, technical development,
engineering, quality assurance and distribution.

     During Bill’s years at Cooper, the division enjoyed unprecedented growth
and profitability benefiting from Bill’s participation as a key member of the
senior management team.

	 	 	 
		 	/s/ D. Richard Stephens
	 
	 
	 	 	
President, International Tire Division

 

Page 9

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