Credit Agreement

EXHIBIT 10.1


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$1,500,000,000


AMENDED AND RESTATED CREDIT AGREEMENT


among


VISTEON CORPORATION,


as Borrower,


The Several Lenders from Time to Time Parties Hereto,


CREDIT SUISSE SECURITIES (USA) LLC


and SUMITOMO MITSUI BANKING CORPORATION,


as Co-Documentation Agents,


CITICORP USA, INC.,


as Syndication Agent,


and


JPMORGAN CHASE BANK, N.A.,


as Administrative Agent


Dated as of April 10, 2007


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J.P. MORGAN SECURITIES INC. and
CITIGROUP GLOBAL MARKETS INC.,
as Joint Lead Arrangers and Joint Bookrunners


TABLE OF CONTENTS


Page SECTION 1. DEFINITIONS 1


1.1 Defined Terms................................................................................... 1
1.2 Other Definitional Provisions................................................................... 22


SECTION 2. AMOUNT AND TERMS OF COMMITMENTS 23


2.1 Term Commitments................................................................................ 23
2.2 Reserved........................................................................................ 23
2.3 Repayment of Term Loans......................................................................... 23
2.4 Optional Prepayments............................................................................ 23
2.5 Mandatory Prepayments........................................................................... 24
2.6 Conversion and Continuation Options............................................................. 25
2.7 Limitations on Eurodollar Tranches.............................................................. 25
2.8 Interest Rates and Payment Dates................................................................ 25
2.9 Computation of Interest and Fees................................................................ 26
2.10 Inability to Determine Interest Rate............................................................ 26
2.11 Pro Rata Treatment and Payments................................................................. 27
2.12 Requirements of Law............................................................................. 28
2.13 Taxes........................................................................................... 29
2.14 Indemnity....................................................................................... 30
2.15 Change of Lending Office........................................................................ 31
2.16 Replacement of Lenders.......................................................................... 31
2.17 Incremental Term Loans.......................................................................... 31


SECTION 3. REPRESENTATIONS AND WARRANTIES 32


3.1 Financial Condition............................................................................. 32
3.2 No Change....................................................................................... 33
3.3 Existence; Compliance with Law.................................................................. 33
3.4 Power; Authorization; Enforceable Obligations................................................... 33
3.5 No Legal Bar.................................................................................... 33
3.6 Litigation...................................................................................... 34
3.7 No Default...................................................................................... 34
3.8 Ownership of Property; Liens.................................................................... 34
3.9 Intellectual Property........................................................................... 34
3.10 Taxes........................................................................................... 34
3.11 Federal Regulations............................................................................. 34
3.12 Labor Matters................................................................................... 35
3.13 ERISA........................................................................................... 35
3.14 Investment Company Act; Other Regulations....................................................... 35
3.15 Subsidiaries.................................................................................... 35
3.16 Use of Proceeds................................................................................. 35
3.17 Environmental Matters........................................................................... 35


3.18 Accuracy of Information, etc.................................................................... 36
3.19 Security Documents.............................................................................. 37


SECTION 4. CONDITIONS PRECEDENT 37


SECTION 5. AFFIRMATIVE COVENANTS 37


5.1 Financial Statements............................................................................ 38
5.2 Certificates; Other Information................................................................. 38
5.3 Payment of Obligations.......................................................................... 39
5.4 Maintenance of Existence; Compliance............................................................ 39
5.5 Maintenance of Property; Insurance.............................................................. 40
5.6 Inspection of Property; Books and Records; Discussions.......................................... 40
5.7 Notices......................................................................................... 40
5.8 Environmental Laws.............................................................................. 40
5.9 Additional Collateral, etc...................................................................... 41
5.10 Stock of First-Tier Foreign Subsidiaries........................................................ 43
5.11 Post-Closing Matters............................................................................ 43


SECTION 6. NEGATIVE COVENANTS 43


6.1 Indebtedness.................................................................................... 43
6.2 Liens........................................................................................... 46
6.3 Fundamental Changes............................................................................. 49
6.4 Disposition of Property......................................................................... 50
6.5 Restricted Payments............................................................................. 51
6.6 Capital Expenditures............................................................................ 52
6.7 Investments..................................................................................... 53
6.8 Optional Payments and Modifications of Certain Debt Instruments; Modifications of
Organizational Documents................................................................. 55
6.9 Transactions with Affiliates.................................................................... 56
6.10 Swap Agreements................................................................................. 56
6.11 Changes in Fiscal Periods....................................................................... 56
6.12 Negative Pledge Clauses......................................................................... 56
6.13 Clauses Restricting Subsidiary Distributions.................................................... 57
6.14 Lines of Business............................................................................... 57
6.15 Business of VIHI and Foreign Stock Holding Companies............................................ 57
6.16 Indebtedness Under CNTA Exception............................................................... 57
6.17 Liabilities of Oasis Holdings Statutory Trust................................................... 58
6.18 Business of Securitization Subsidiary........................................................... 58


SECTION 7. EVENTS OF DEFAULT 58


SECTION 8. THE AGENTS 60


8.1 Appointment..................................................................................... 60
8.2 Delegation of Duties............................................................................ 61
8.3 Exculpatory Provisions.......................................................................... 61


8.4 Reliance by Administrative Agent................................................................ 61
8.5 Notice of Default............................................................................... 61
8.6 Non-Reliance on Agents and Other Lenders........................................................ 62
8.7 Indemnification................................................................................. 62
8.8 Agent in Its Individual Capacity................................................................ 62
8.9 Successor Administrative Agent.................................................................. 62
8.10 Documentation Agent and Syndication Agent....................................................... 63


SECTION 9. MISCELLANEOUS 63


9.1 Amendments and Waivers.......................................................................... 63
9.2 Notices......................................................................................... 64
9.3 No Waiver; Cumulative Remedies.................................................................. 65
9.4 Survival of Representations and Warranties...................................................... 65
9.5 Payment of Expenses and Taxes................................................................... 65
9.6 Successors and Assigns; Participations and Assignments.......................................... 66
9.7 Adjustments; Set-off............................................................................ 69
9.8 Counterparts.................................................................................... 69
9.9 Severability.................................................................................... 69
9.10 Integration..................................................................................... 70
9.11 GOVERNING LAW................................................................................... 70
9.12 Submission To Jurisdiction; Waivers............................................................. 70
9.13 Acknowledgements................................................................................ 70
9.14 Releases of Guarantees and Liens................................................................ 71
9.15 Confidentiality................................................................................. 71
9.16 Intercreditor Agreement......................................................................... 72
9.17 WAIVERS OF JURY TRIAL........................................................................... 72


AMENDED AND RESTATED CREDIT AGREEMENT dated as of April 10, 2007 (this "Agreement"), among Visteon Corporation, a Delaware corporation (the "Borrower"), the several banks and other financial institutions or entities from time to time parties to this Agreement (the "Lenders"), Credit Suisse Securities (USA) LLC and Sumitomo Mitsui Banking Corporation, as co-documentation agents (in such capacities, the "Co-Documentation Agent"), Citicorp USA, Inc., as syndication agent (in such capacity, the "Syndication Agent"), and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the "Administrative Agent").


W I T N E S S E T H:


WHEREAS, the Borrower obtained a term loan facility pursuant to the Credit Agreement dated as of June 13, 2006 as amended on November 27, 2006 (as amended prior to the Restatement Effective Date, the "Existing Credit Agreement") in an aggregate amount of $800,000,000 to refinance certain of its existing indebtedness, for working capital and for general corporate purposes;


WHEREAS, the Borrower obtained an initial incremental term loan facility in an aggregate amount of $200,000,000 (together with the $800,000,000 obtained by the Borrower on the Closing Date, the "Existing Term Loan Facility") pursuant to an incremental term loan amendment (the "Initial Incremental Term Loan Amendment") dated as of November 27, 2006 (the "Initial Incremental Closing Date"); and


WHEREAS, the Borrower and the Lenders have agreed to amend and restate the Existing Credit Agreement in the manner provided herein pursuant to the Agreement to Amend and Restate dated as of April [__], 2007 (the "Agreement to Amend and Restate"), among the Borrower, the Required Lenders, the Additional Lenders (as defined below) and the Administrative Agent, which, among other things, provides for an additional term loan facility (the "Additional Term Loan Facility" and collectively with the Existing Term Loan Facility, the "Facility") in an amount equal to $500,000,000;


WHEREAS, the Lenders are willing to extend such credit to the Borrower on the terms and subject to the conditions set forth herein;


NOW, THEREFORE, the parties hereto hereby agree that the Existing Credit Agreement is hereby amended and restated to read in its entirety as follows:


SECTION 1 DEFINITIONS


1.1 Defined Terms. As used in this Agreement, the terms listed in this Section 1.1 shall have the respective meanings set forth in this Section 1.1.


"ABL Financing": the asset based revolving credit facility dated as of August 14, 2006 among the Borrower, the lenders from time to time parties thereto and JPMorgan Chase Bank, N.A., as administrative agent thereunder, as amended.


"ABR": for any day, a rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to the greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%. For purposes hereof: "Prime Rate" shall mean the rate of interest per annum publicly announced from time to time by the Administrative Agent as its prime rate in effect at its principal office in New York City (the Prime Rate not being intended to be the lowest rate of interest charged by the Administrative Agent in connection with extensions of credit to debtors). Any change in the ABR due to a change in the Prime Rate or the Federal Funds Effective Rate shall be


effective as of the opening of business on the effective day of such change in the Prime Rate or the Federal Funds Effective Rate, respectively.


"ABR Loans": Loans the rate of interest applicable to which is based upon the ABR.


"Acquired Non-Core Assets": any assets acquired in a Permitted Acquisition and designated as "non-core assets" by notice from the Borrower to the Administrative Agent within 30 days after the consummation thereof so long as such assets do not constitute more than 25% of the assets acquired in any such Permitted Acquisition.


"Acquisition": with respect to any Person, (a) the acquisition by such Person of the Capital Stock of any other Person resulting in such other Person becoming a Subsidiary of such Person, (b) the acquisition by such Person of all or substantially all of the assets of any other Person, or (c) any merger or consolidation of a Subsidiary of such Person with any other Person so long as the surviving entity of such merger or consolidation is a Subsidiary of such Person.


"Additional Term Loans": the term loans made on the Restatement Effective Date pursuant to Section 2 of the Agreement to Amend and Restate.


"Additional Term Commitment": as defined in the Agreement to Amend and Restate.


"Additional Term Facility": as defined in the recitals to this Agreement.


"Adjusted EBITDA": at any date of determination, an amount equal to (a) Consolidated EBITDA for the period from the first day of the first full quarter after the Closing Date to the last day of the most recent quarter ending prior to such date of determination for which financial statements have been delivered (treated as one accounting period) minus (b) the sum of (i) Capital Expenditures for such period and (ii) the cash interest expense of the Borrower and its Subsidiaries for such period as determined on a consolidated basis in accordance with GAAP.


"Administrative Agent": JPMorgan Chase Bank, N.A., as the administrative agent for the Lenders under this Agreement and the other Loan Documents, together with any of its successors and replacements appointed in accordance with Section 8.9.


"Affiliate": as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person. For purposes of this definition, "control" of a Person means the power, directly or indirectly, either to (a) vote 10% or more of the securities having ordinary voting power for the election of directors (or persons performing similar functions) of such Person or (b) direct or cause the direction of the management and policies of such Person, whether by contract or otherwise.


"Agents": the collective reference to the Syndication Agent and the Administrative Agent.


"Aggregate Exposure": with respect to any Lender at any time, an amount equal to (a) the aggregate then unpaid principal amount of such Lender's Term Loans and (b) if applicable, until the Restatement Effective Date, the aggregate amount of such Lender's Commitments in respect of the Additional Term Facility at such time.


"Aggregate Exposure Percentage": with respect to any Lender at any time, the ratio (expressed as a percentage) of such Lender's Aggregate Exposure at such time to the Aggregate Exposure of all Lenders at such time.


"Agreement": as defined in the preamble hereto.


"Agreement to Amend and Restate": as defined in the recitals to this Agreement.


"Applicable Margin": in the case of ABR Loans, 2.00% and, in the case of Eurodollar Loans, 3.00%.


"Approved Fund": as defined in Section 9.6(b).


"Asset Sale": any Disposition of property or series of related Dispositions of property (excluding any such Disposition permitted by Section 6.4 other than pursuant to paragraphs (e), (j), (k), (l), (m) and (s) thereof) that yields gross proceeds to any Group Member (valued at the initial principal amount thereof in the case of non-cash proceeds consisting of notes or other debt securities and valued at fair market value in the case of other non-cash proceeds) in excess of $2,500,000.


"Asset Sale Proceeds Deferred Amount": with respect to any Asset Sale Proceeds Event, the aggregate Net Cash Proceeds received by any Group Member in connection therewith that are not applied to prepay the Term Loans pursuant to Section 2.5(b) as a result of the delivery of a Note Repurchase Notice and/or a Reinvestment Notice, as the case may be.


"Asset Sale Proceeds Event": (a) any Asset Sale permitted under Section 6.4(j), 6.4(k) or 6.4(l) in respect of which the Borrower has delivered a Note Repurchase Notice and (b) any Asset Sale or Recovery Event in respect of which the Borrower has delivered a Reinvestment Notice.


"Asset Sale Proceeds Prepayment Amount": with respect to any Asset Sale Proceeds Event, the Asset Sale Proceeds Deferred Amount relating thereto less any amount expended prior to the relevant Asset Sale Proceeds Prepayment Date (a) in the case of an Asset Sale Proceeds Event for which a Reinvestment Notice has been delivered, to finance a Permitted Acquisition or to acquire or repair assets useful in its business or to (other than, except in the case of a Recovery Event relating thereto, the acquisition of inventory and other current assets in the ordinary course of business) and/or (b) in the case of an Asset Sale Proceeds Event for which a Note Repurchase Notice has been delivered, to repurchase or redeem the 2010 Notes (or, to the extent the 2010 Notes have been repurchased or redeemed in full, the 2014 Notes).


"Asset Sale Proceeds Prepayment Date": (a) with respect to any Asset Sale Proceeds Event for which a Reinvestment Notice has been delivered, the earlier of (i) the date occurring twelve months after such Asset Sale Proceeds Event and (ii) the date on which the Borrower shall have notified the Administrative Agent in writing of its determination not to finance a Permitted Acquisition or to acquire or repair assets useful in the business of the Borrower or its Subsidiaries (other than, except in the case of a Recovery Event relating thereto, the acquisition of inventory and other current assets in the ordinary course of business) with all or any portion of the relevant Asset Sale Proceeds Deferred Amount and (b) with respect to any Asset Sale Proceeds Event for which a Note Repurchase Notice has been delivered, the earlier of (i) the date occurring six months after such Asset Sale Proceeds Event and (ii) the date on which the Borrower shall have determined not to repurchase or redeem the 2010 Notes (or, to the extent the 2010 Notes have been repurchased or redeemed in full, the 2014 Notes) with all or a portion of the relevant Asset Sale Proceeds Deferred Amount.


"Assignee": as defined in Section 9.6(b).


"Assignment and Assumption": an Assignment and Assumption, substantially in the form of Exhibit E.


"Benefitted Lender": as defined in Section 9.7(a).


"Board": the Board of Governors of the Federal Reserve System of the United States (or any successor).


"Borrower": as defined in the preamble hereto.


"Borrowing Date": any Business Day specified by the Borrower as a date on which the Borrower requests the relevant Lenders to make Loans hereunder.


"Business": as defined in Section 3.17(b).


"Business Day": a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to close, provided, that with respect to notices and determinations in connection with, and payments of principal and interest on, Eurodollar Loans, such day is also a day for trading by and between banks in Dollar deposits in the London interbank eurodollar market.


"Capital Expenditures": for any period, with respect to any Person, the aggregate of all expenditures by such Person and its Subsidiaries for the acquisition or leasing (pursuant to a capital lease) of fixed or capital assets or additions to equipment (including replacements, capitalized repairs and improvements during such period) that should be capitalized under GAAP on a consolidated balance sheet of such Person and its Subsidiaries. Notwithstanding the foregoing, Capital Expenditures shall not include, without duplication: (a) the consideration for any Permitted Acquisition or Investments (other than Investments pursuant to Section 6.7(x)); (b) capital expenditures recorded as result of the consummation of any sale-leaseback transaction permitted hereunder; (c) capital expenditures financed with the net cash proceeds of any issuance of Capital Stock by the Borrower after the Closing Date; (d) capital expenditures in respect of the purchase price of equipment to the extent the consideration therefor consists of any combination of (i) equipment traded in at the time of such purchase pursuant to a Disposition permitted under Section 6.4(a) and (ii) the proceeds of a concurrent Disposition pursuant to Section 6.4(a) of equipment, in each case, in the ordinary course of business; (e) capital expenditures funded with any Asset Sale Proceeds Deferred Amount; (f) interest capitalized in respect of capital expenditures and (g) expenditures that are accounted for as capital expenditures of such Person and that actually are paid for by a third party (excluding any Group Member) and for which no Group Member has provided or is required to provide or incur, directly or indirectly, any consideration or obligation to such third party or any other Person (whether before, during or after such period), provided that the amount of capital expenditures excluded pursuant to this clause (g) shall not exceed $50,000,000 for all periods.


"Capital Lease Obligations": as to any Person, the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP and, for the purposes of this Agreement, the amount of such obligations at any time shall be the capitalized amount thereof at such time determined in accordance with GAAP.


"Capital Stock": any and all shares, interests, participations or other equivalents (however designated) of ...