Amended And Restated 5-year Revolving Credit Agree

AMENDED AND RESTATED
5-YEAR REVOLVING CREDIT AGREEMENT


dated as of June 27, 2001


among


ARVINMERITOR, INC.,


MERITOR AUTOMOTIVE CANADA, INC.
ARVIN FINANCE IRELAND
MERITOR HEAVY VEHICLE SYSTEMS LIMITED,
as the initial Foreign Subsidiary Borrowers,


THE OTHER FOREIGN SUBSIDIARY BORROWERS
FROM TIME TO TIME PARTIES HERETO,


THE LENDERS FROM TIME TO TIME PARTIES HERETO,


BANK ONE, NA
(Main Office Chicago)
as Administrative Agent,


THE CHASE MANHATTAN BANK
as Syndication Agent


and


CITICORP USA, INC.
and
BANK OF AMERICA, N.A.
as Documentation Agents


================================================================================


BANC ONE CAPITAL MARKETS, INC.


and


JP MORGAN SECURITIES, INC.
as Joint Lead Arrangers and Joint Book Runners


================================================================================


SIDLEY AUSTIN BROWN & WOOD
Bank One Plaza
10 South Dearborn Street
Chicago, Illinois 60603 2
TABLE OF CONTENTS


ARTICLE I
DEFINITIONS


1.1. Defined Terms.............................................................. 1


ARTICLE II
THE CREDITS


2.1. Commitments................................................................ 22 2.2. Repayment of Revolving Credit Loans; Evidence of Debt...................... 23 2.3. Procedures for Revolving Credit Borrowing.................................. 23 2.4. Termination or Reduction of Revolving Credit Commitment.................... 24 2.5. Multicurrency Commitments.................................................. 24 2.6. Special Provisions for Non-Pro Rata Multicurrency Loans.................... 26 2.7. Swing Line Loans........................................................... 28 2.8. Facility, Utilization and Agent Fees....................................... 30 2.9. Optional and Mandatory Principal Payments on All Loans..................... 30 2.10. Conversion and Continuation of Outstanding Advances....................... 32 2.11. Interest Rates; Interest Payment Dates; Interest and Fee Basis............ 32 2.12. Changes in Interest Rate, etc............................................. 34 2.13. Rates Applicable After Default............................................ 34 2.14. Pro Rata Payment, Method of Payment....................................... 34 2.15. Telephonic Notices........................................................ 35 2.16. Notification of Advances, Interest Rates, Prepayments, Activation of
Non-Pro Rata Multicurrency Loans and Commitment Reductions............... 35 2.17. Lending Installations..................................................... 35 2.18. Non-Receipt of Funds by the Administrative Agent.......................... 36 2.19. Facility Letters of Credit................................................ 36 2.20. Application of Payments with Respect to Defaulting Lenders................ 41


ARTICLE III
CHANGE IN CIRCUMSTANCES, TAXES


3.1. Yield Protection........................................................... 41 3.2. Changes in Capital Adequacy Regulations.................................... 42 3.3. Availability of Types of Advances.......................................... 42 3.4. Funding Indemnification.................................................... 43 3.5. Lender Statements; Survival of Indemnity................................... 43 3.6. Taxes...................................................................... 43 3.7. Substitution of Lender..................................................... 45


ARTICLE IV
CONDITIONS PRECEDENT


4.1. Initial Advances and Letters of Credit under the Original Credit Agreement. 46 4.2. Each Advance............................................................... 48 4.3. Effectiveness of this Agreement............................................ 48


i 3
ARTICLE V
REPRESENTATIONS AND WARRANTIES


5.1. Corporate Existence and Standing........................................... 49 5.2. Authorization and Validity................................................. 49 5.3. No Conflict; Government Consent............................................ 49 5.4. Financial Statements....................................................... 50 5.5. Material Adverse Change.................................................... 50 5.6. Taxes...................................................................... 50 5.7. Litigation and Contingent Obligations...................................... 50 5.8. Subsidiaries............................................................... 50 5.9. ERISA...................................................................... 51 5.10. Accuracy of Information................................................... 51 5.11. Regulation U.............................................................. 51 5.12. Material Agreements....................................................... 51 5.13. Compliance With Laws...................................................... 51 5.14. Plan Assets; Prohibited Transactions...................................... 51 5.15. Environmental Matters..................................................... 51 5.16. Investment Company Act.................................................... 51 5.17. Public Utility Holding Company Act........................................ 52 5.18. Foreign Subsidiary Borrowers.............................................. 52


ARTICLE VI
COVENANTS


6.1. Financial Reporting........................................................ 52 6.2. Use of Proceeds............................................................ 53 6.3. Notice of Default.......................................................... 54 6.4. Conduct of Business........................................................ 54 6.5. Taxes...................................................................... 54 6.6. Insurance.................................................................. 54 6.7. Compliance with Laws....................................................... 54 6.8. Maintenance of Properties.................................................. 54 6.9. Inspection................................................................. 54 6.10. Priority Indebtedness..................................................... 55 6.11. Merger.................................................................... 55 6.12. Sale of Assets............................................................ 55 6.13. Conduct of Business; Investments and Acquisitions......................... 56 6.14. Liens..................................................................... 56 6.15. Transactions with Affiliates and Joint Ventures........................... 58 6.16. Contingent Obligations.................................................... 58 6.17. Sale and Leaseback........................................................ 58 6.18. Subordinated Indebtedness; Restricted Payments............................ 58 6.19. Additional Guarantees..................................................... 58 6.20. Debt Ratio................................................................ 58 6.21. Financial Contracts....................................................... 58 6.22. Fixed Charge Coverage Ratio............................................... 58


ARTICLE VII
DEFAULTS


7.1. Defaults................................................................... 59


ii 4
ARTICLE VIII
ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES


8.1. Acceleration............................................................... 60 8.2. Amendments................................................................. 62 8.3. Preservation of Rights..................................................... 63


ARTICLE IX
GUARANTY


9.1. Guaranty................................................................... 63 9.2. No Subrogation............................................................. 64 9.3. Amendments, etc. with respect to the Obligations; Waiver of Rights......... 64 9.4. Guarantee Absolute and Unconditional....................................... 64 9.5. Reinstatement.............................................................. 65 9.6. Payments................................................................... 65


ARTICLE X
GENERAL PROVISIONS


10.1. Survival of Representations............................................... 65 10.2. Governmental Regulation................................................... 65 10.3. Taxes..................................................................... 66 10.4. Headings.................................................................. 66 10.5. Entire Agreement.......................................................... 66 10.6. Several Obligations; Benefits of this Agreement........................... 66 10.7. Expenses; Indemnification................................................. 66 10.8. Numbers of Documents...................................................... 67 10.9. Accounting................................................................ 67 10.10. Severability of Provisions............................................... 67 10.11. Nonliability of Lenders.................................................. 67 10.12. Confidentiality.......................................................... 67 10.13. Nonreliance.............................................................. 68


ARTICLE XI
THE AGENTS


11.1. Appointment; Nature of Relationship....................................... 68 11.2. Powers.................................................................... 69 11.3. General Immunity.......................................................... 69 11.4. No Responsibility for Loans, Recitals, etc................................ 69 11.5. Action on Instructions of Lenders......................................... 69 11.6. Employment of Agents and Counsel.......................................... 70 11.7. Reliance on Documents; Counsel............................................ 70 11.8. Agents' Reimbursement and Indemnification................................. 70 11.9. Notice of Default......................................................... 70 11.10. Rights as a Lender....................................................... 70 11.11. Lender Credit Decision................................................... 70 11.12. Successor Agents......................................................... 71 11.13. No Duties Imposed Upon Syndication Agent, Documentation Agent or Arranger 71


ARTICLE XII
SETOFF; ADJUSTMENTS AMONG LENDERS; APPOINTED LENDERS


12.1. Setoff.................................................................... 71 12.2. Ratable Payments.......................................................... 72 12.3. Application of Payments................................................... 72


iii 5 12.4. Loan Conversion/Participations............................................ 73 12.5. Appointed Lenders......................................................... 74


ARTICLE XIII
BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS


13.1. Successors and Assigns.................................................... 75 13.2. Participations............................................................ 75 13.3. Assignments............................................................... 76 13.4. Dissemination of Information.............................................. 77 13.5. Tax Treatment............................................................. 77


ARTICLE XIV
NOTICES


14.1. Notices................................................................... 77 14.2. Change of Address......................................................... 77


ARTICLE XV
COUNTERPARTS


15.1. Counterparts.............................................................. 78


ARTICLE XVI CHOICE OF LAW, CONSENT TO JURISDICTION, WAIVER OF JURY TRIAL, JUDGMENT CURRENCY


16.1. CHOICE OF LAW............................................................. 78 16.2. WAIVER OF JURY TRIAL...................................................... 78 16.3. Submission To Jurisdiction; Waivers....................................... 78 16.4. Acknowledgments........................................................... 79 16.5. Power of Attorney......................................................... 79 16.6. Judgment.................................................................. 79 16.7. No Novation............................................................... 80


iv 6 Exhibits


EXHIBIT A -- Form of Promissory Note EXHIBIT B -- Pricing Schedule EXHIBIT C -- Form of Compliance Certificate EXHIBIT D -- Form of Company's Counsel's Opinion EXHIBIT E -- Form of Foreign Subsidiary Borrower's Counsel's Opinion EXHIBIT F -- Form of Written Money Transfer Instructions EXHIBIT G -- Form of Joinder Agreement EXHIBIT H -- Form of Assignment Agreement EXHIBIT I -- Original List of Closing Documents EXHIBIT J -- Appointment Agreement


SCHEDULES


Schedule 1 -- Commitments Schedule 2 -- Eurocurrency Base Rate Schedule 3 -- Foreign Subsidiary Borrowers Schedule 4 -- Permitted Subsidiary Public Indebtedness Schedule 5 -- Litigation Schedule 6 -- Subsidiaries Schedule 7 -- ERISA


v 7
THIS AMENDED AND RESTATED 5-YEAR REVOLVING CREDIT AGREEMENT (this "AGREEMENT"), dated as of June 27, 2001, is entered into among ARVINMERITOR, INC., an Indiana corporation (the "Company"), the FOREIGN SUBSIDIARY BORROWERS (as hereinafter defined) from time to time parties hereto (together with the Company, the "Borrowers"), the lenders from time to time parties hereto (the "Lenders"), BANK ONE, NA, having its principal office in Chicago, Illinois, as administrative agent for the Lenders (the "ADMINISTRATIVE AGENT"), THE CHASE MANHATTAN BANK, as syndication agent for the Lenders (the "SYNDICATION AGENT"), and CITICORP USA, INC. and BANK OF AMERICA, N.A., as documentation agents for the Lenders (the "DOCUMENTATION AGENTS"), to amend and restate the 5-Year Revolving Credit Agreement dated as of June 28, 2000 among the Company, the foreign subsidiary borrowers party thereto, the lenders party thereto, the Administrative Agent, the Syndication Agent and the Documentation Agents (the "ORIGINAL CREDIT AGREEMENT"), and, from and after the Closing Date, the Original Credit Agreement is hereby amended and restated in its entirety.


NOW, THEREFORE, in consideration of the premises and the mutual agreements contained herein, the parties hereto agree as follows:


ARTICLE I
DEFINITIONS


1.1. Defined Terms. As used in this Agreement, the following terms shall have the following meanings:


"Activated Non-Pro Rata Multicurrency Commitment" means as to any Multicurrency Lender, its Multicurrency Commitment to make Non-Pro Rata Multicurrency Loans to the Borrowers for which such Multicurrency Lender is a Designated Multicurrency Lender following the Activation Date with respect to such Non-Pro Rata Multicurrency Loans under Section 2.6.1 hereof, as such amount may be reduced from time to time as provided in Section 2.6, 13.3 and the other applicable provisions hereof.


"Activation Date" is defined in Section 2.6.1 hereof.


"Activation Request" is defined in Section 2.6.1.


"Acquisition" means any transaction, or any series of related transactions, consummated on or after the date of this Agreement, by which the Company or any of its Subsidiaries (i) acquires any going business or all or substantially all of the assets of any firm, corporation or limited liability company, or division thereof, whether through purchase of assets, merger or otherwise or (ii) directly or indirectly acquires (in one transaction or as the most recent transaction in a series of transactions) at least a majority (in number of votes) of the securities of a corporation which have ordinary voting power for the election of directors (other than securities having such power only by reason of the happening of a contingency) or a majority (by percentage or voting power) of the outstanding ownership interests of a partnership or limited liability company.


"Adjusted Aggregate Ratable Outstandings" means with respect to each Lender, the Aggregate Ratable Outstandings of such Lender, plus the amount of any participating interests purchased by such Lender pursuant to Section 12.4, minus the amount of any participating interests sold by such Lender pursuant to Section 12.4.


"Administrative Agent" means Bank One in its capacity as administrative agent for the Lenders pursuant to Article XI, and not in its individual capacity as a Lender, and any successor Administrative 8 Agent appointed pursuant to Article XI and, for purposes of any Multicurrency Loan, any Person designated pursuant to Section 2.5.1(e) hereof.


"Advance" means a Multicurrency Advance or a Revolving Credit Advance, as the case may be.


"Affiliate" of any Person means any other Person directly or indirectly controlling, controlled by or under common control with such Person. The term "control" (including the correlative terms "controlled" and "controlling") means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting stock, by contract and otherwise; provided that under no circumstance shall the Administrative Agent, the Syndication Agent or any of the Lenders be deemed to be Affiliates of the Company or vice versa.


"Agents" shall mean, collectively, the Administrative Agent, the Syndication Agent and the Documentation Agents.


"Aggregate Activated Non-Pro Rata Multicurrency Commitments" means the aggregate amount of the Activated Non-Pro Rata Multicurrency Commitments of all the Lenders, which shall not exceed an amount, the U.S. Dollar Equivalent of which is Two Hundred Million Dollars ($200,000,000).


"Aggregate Multicurrency Commitments" means the aggregate amount of the Multicurrency Commitments of all the Lenders, which shall not exceed an amount, the U.S. Dollar Equivalent of which is Five Hundred Million Dollars ($500,000,000), as such amount may be reduced by the Aggregate Activated Non-Pro Rata Multicurrency Commitments pursuant to Section 2.4 or 2.6.


"Aggregate Multicurrency Outstandings" means as at any date of determination with respect to any Lender, the U.S. Dollar Equivalent of an amount in the applicable Available Foreign Currencies and in U.S. Dollars equal to the sum of the aggregate unpaid principal amount of such Lender's Multicurrency Loans and Multicurrency Swing Line Loans on such date and the amount of such Lender's Multicurrency Commitment Percentage of the funded participations in or obligations to purchase participations in Multicurrency Loans, the Multicurrency Swing Line Loans and of the Facility Letter of Credit Obligations with respect to Multicurrency Facility Letters of Credit for all Borrowers.


"Aggregate Non-Pro Rata Multicurrency Outstandings" means as at any date of determination with respect to any Lender, an amount in U.S. Dollars equal to the sum of Aggregate Multicurrency Outstandings of such Lender with respect to Non-Pro Rata Multicurrency Loans in favor of a particular Borrower in a particular Available Foreign Currency on such date.


"Aggregate Pro Rata Multicurrency Outstandings" means, as at any date of determination with respect to any Lender, an amount in U.S. Dollars equal to the sum of the Aggregate Multicurrency Outstandings of such Lender with respect to Pro Rata Multicurrency Loans on such date.


"Aggregate Ratable Outstandings" means as at any date of determination with respect to any Lender, an amount in U.S. Dollars equal to the sum of (a) the Aggregate Revolving Credit Outstandings of such Lender on such date and (b) the Aggregate Pro Rata Multicurrency Outstandings of such Lender on such date.


"Aggregate Revolving Credit Commitments" means the aggregate amount of the Revolving Credit Commitments of all of the Lenders, which amount shall not exceed Seven Hundred Fifty Million Dollars ($750,000,000), as such number may be reduced by the Aggregate Activated Non-Pro Rata Multicurrency Commitments pursuant to Section 2.6.


2 9
"Aggregate Revolving Credit Outstandings" means as at any date of determination with respect to any Lender, the sum of the aggregate unpaid principal amount of such Lender's Revolving Credit Loans and U.S. Swing Line Loans on such date and the amount of such Lender's Revolving Credit Commitment Percentage of the funded participations in or obligations to purchase participations in U.S. Swing Line Loans and the Facility Letter of Credit Obligations with respect to U.S. Facility Letters of Credit.


"Agreement" means this amended and restated credit agreement, as it may be further amended, restated, supplemented or otherwise modified and in effect from time to time.


"Agreement Accounting Principles" means generally accepted accounting principles as in effect on June 1, 2001 in the United States; provided that, if the Company notifies the Administrative Agent that the Company wishes to amend any covenant contained in Article VI to eliminate the effect of any change in generally accepted accounting principles on the calculation of such covenant (or if the Administrative Agent notifies the Company that the Required Lenders wish to amend Article VI for such purpose), then the Company's compliance with such covenant shall be determined on the basis of generally accepted accounting principles in effect on June 1, 2001 in the United States until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the Company and the Required Lenders.


"Agreement Currency" is defined in Section 16.6.


"Alternate Base Rate" means, for any day, a rate of interest per annum equal to the higher of (a) the Prime Rate for such day and (b) the sum of the Federal Funds Effective Rate for such day plus 1/2% per annum.


"Applicable Margin" means the amounts set forth in the Pricing Schedule on Exhibit B hereto.


"Appointed Lender" means, with respect to each Appointing Lender, each Eligible Appointee designated by such Appointing Lender pursuant to Section 12.5.


"Appointing Lender" means, with respect to each Appointed Lender, the Lender that designated such Appointed Lender pursuant to Section 12.5.


"Article" means an article of this Agreement unless another document is specifically referenced.


"Arvin" means Arvin Industries, Inc., an Indiana corporation.


"Assignment" is defined in Section 13.3.1.


"Authorized Officer" means any of the Chairman and Chief Executive Officer, Vice Chairman and President, Senior Vice President and Chief Financial Officer, Vice President and Treasurer and any Assistant Treasurer of the Company or any person designated by any such Person in writing to the Administrative Agent from time to time, acting singly.


"Available Foreign Currencies" means British Pounds Sterling, Canadian Dollars and euro and any other available and freely-convertible non-U.S. Dollar currency selected by the Company and approved by the Administrative Agent and the Syndication Agent.


"Available Non-Pro Rata Multicurrency Commitment" means as at any date of determination with respect to any Designated Multicurrency Lender for a particular Borrower and an applicable Available Foreign Currency, the excess, if any of (a) the amount of such Lender's Activated Non-Pro Rata


3 10 Multicurrency Commitment in effect on such date over (b) the Aggregate Multicurrency Outstandings of such Multicurrency Lender in the applicable Available Foreign Currency on such date.


"Available Pro Rata Multicurrency Commitment" means at any date of determination with respect to any Multicurrency Lender, the lesser of (a) the excess, if any, of (i) the U.S. Dollar Equivalent of such Multicurrency Lender's Multicurrency Commitment with respect to Pro Rata Multicurrency Loans in effect on such date over (ii) the Aggregate Multicurrency Outstandings of such Multicurrency Lender with respect to Pro Rata Multicurrency Loans on such date and (b) the Available Revolving Credit Commitment of such Lender on such date.


"Available Revolving Credit Commitment" means at any date of determination with respect to any Lender, an amount in U.S. Dollars equal to the excess, if any, of (a) the amount of such Lender's Revolving Credit Commitment in effect on such date over (b) the Aggregate Ratable Outstandings of such Lender on such date.


"Bank Book" means the ArvinMeritor, Inc. $750,000,000 New Senior Unsecured Credit Facility and $750,000,000 Amended Senior Unsecured Revolving Credit Facility Confidential Information Memorandum dated May 2001.


"Bank One" means Bank One, NA, having its principal place of business in Chicago, Illinois, in its individual capacity, and its successors.


"Borrowers" is defined in the preamble hereto.


"Borrowing Date" means any Business Day specified in a notice pursuant to Section 2.3, 2.5, 2.7 or 2.19 as a date on which a Borrower requests the Lenders to make Loans hereunder or, with respect to the issuance of any Facility Letter of Credit, the date an Issuer issues such Facility Le ...