as the Borrower,
as Agent, Swing Line Lender
and
L/C Issuer,
as Documentation Agent,
as
Sole Lead Arranger and Sole Book Manager
SECTION | PAGE | |||
ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS | 1 | |||
1.01 Defined Terms | 1 | |||
1.02 Other Interpretive Provisions | 20 | |||
1.03 Accounting Terms | 21 | |||
1.04 Rounding | 21 | |||
1.05 Times of Day | 21 | |||
1.06 Letter of Credit Amounts | 21 | |||
ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS | 22 | |||
2.01 Revolving Loans | 22 | |||
2.02 Borrowings, Conversions and Continuations of Loans | 22 | |||
2.03 Letters of Credit | 23 | |||
2.04 Swing Line Loans | 32 | |||
2.05 Prepayments | 34 | |||
2.06 Termination or Reduction of Commitments | 35 | |||
2.07 Repayment of Loans | 35 | |||
2.08 Interest | 36 | |||
2.09 Fees | 36 | |||
2.10 Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate | 37 | |||
2.11 Evidence of Debt | 37 | |||
2.12 Payments Generally; Agent’s Clawback | 38 | |||
2.13 Sharing of Payments by Lenders | 40 | |||
ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY | 41 | |||
3.01 Taxes | 41 | |||
3.02 Illegality | 43 | |||
3.03 Inability to Determine Rates | 44 | |||
3.04 Increased Costs | 44 | |||
3.05 Compensation for Losses | 45 | |||
3.06 Mitigation Obligations; Replacement of Lenders | 46 | |||
3.07 Survival | 46 | |||
ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS | 46 | |||
4.01 Conditions of Initial Credit Extension | 46 | |||
4.02 Conditions to all Credit Extensions | 48 | |||
ARTICLE V. REPRESENTATIONS AND WARRANTIES | 49 | |||
5.01 Existence, Qualification and Power | 49 | |||
5.02 Authorization; No Contravention | 49 | |||
5.03 Governmental Authorization; Other Consents | 49 | |||
5.04 Binding Effect | 49 |
i
SECTION | PAGE | |||
5.05 Financial Statements; No Material Adverse Effect | 49 | |||
5.06 Litigation | 50 | |||
5.07 No Default | 50 | |||
5.08 Ownership of Property; Liens | 50 | |||
5.09 Environmental Compliance | 50 | |||
5.10 Insurance | 51 | |||
5.11 Taxes | 51 | |||
5.12 ERISA Compliance | 51 | |||
5.13 Subsidiaries; Equity Interests | 52 | |||
5.14 Margin Regulations; Investment Company Act | 52 | |||
5.15 Disclosure | 52 | |||
5.16 Compliance with Laws | 52 | |||
5.17 Taxpayer Identification Number | 52 | |||
5.18 Intellectual Property; Licenses, Etc. | 53 | |||
5.19 Rights in Collateral; Priority of Liens | 53 | |||
ARTICLE VI. AFFIRMATIVE COVENANTS | 53 | |||
6.01 Financial Statements | 53 | |||
6.02 Certificates; Other Information | 54 | |||
6.03 Notices | 56 | |||
6.04 Payment of Obligations | 56 | |||
6.05 Preservation of Existence, Etc. | 56 | |||
6.06 Maintenance of Properties | 56 | |||
6.07 Maintenance of Insurance | 57 | |||
6.08 Compliance with Laws | 57 | |||
6.09 Books and Records | 57 | |||
6.10 Inspection Rights | 57 | |||
6.11 Use of Proceeds | 57 | |||
6.12 Additional Guarantors | 57 | |||
6.13 Collateral Records | 58 | |||
6.14 Security Interests | 58 | |||
ARTICLE VII. NEGATIVE COVENANTS | 58 | |||
7.01 Liens | 58 | |||
7.02 Investments | 59 | |||
7.03 Indebtedness | 60 | |||
7.04 Fundamental Changes | 61 | |||
7.05 Dispositions | 61 | |||
7.06 Restricted Payments | 62 | |||
7.07 Change in Nature of Business | 62 | |||
7.08 Transactions With Affiliates | 62 | |||
7.09 Burdensome Agreements | 62 | |||
7.10 Use of Proceeds | 62 | |||
7.11 Financial Covenants | 62 |
ii
SECTION | PAGE | |||
ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES | 63 | |||
8.01 Events of Default | 63 | |||
8.02 Remedies Upon Event of Default | 65 | |||
8.03 Application of Funds | 65 | |||
ARTICLE IX. ADMINISTRATIVE AGENT | 66 | |||
9.01 Appointment and Authorization of Administrative Agent | 66 | |||
9.02 Rights as a Lender | 67 | |||
9.03 Exculpatory Provisions | 67 | |||
9.04 Reliance by Administrative Agent | 68 | |||
9.05 Delegation of Duties | 68 | |||
9.06 Resignation of Agent | 68 | |||
9.07 Non-Reliance on Agent and Other Lenders | 69 | |||
9.08 No Other Duties, Etc | 69 | |||
9.09 Administrative Agent May File Proofs of Claim | 69 | |||
9.10 Collateral and Guaranty Matters | 70 | |||
ARTICLE X. MISCELLANEOUS | 70 | |||
10.01 Amendments, Etc | 70 | |||
10.02 Notices; Effectiveness; Electronic Communication | 71 | |||
10.03 No Waiver; Cumulative Remedies | 73 | |||
10.04 Expenses; Indemnity; Damage Waiver | 74 | |||
10.05 Payments Set Aside | 76 | |||
10.06 Successors and Assigns | 76 | |||
10.07 Treatment of Certain Information; Confidentiality | 80 | |||
10.08 Right of Setoff | 81 | |||
10.09 Interest Rate Limitation | 81 | |||
10.10 Counterparts; Integration; Effectiveness | 81 | |||
10.11 Survival of Representations and Warranties | 81 | |||
10.12 Severability | 82 | |||
10.13 Replacement of Lenders | 82 | |||
10.14 Governing Law; Jurisdiction; Etc | 83 | |||
10.15 Waiver of Jury Trial | 83 | |||
10.16 No Advisory or Fiduciary Responsibility | 84 | |||
10.17 Electronic Execution of Assignments and Certain Other Documents | 84 | |||
10.18 USA PATRIOT Act Notice | 85 | |||
10.19 Time of the Essence | 85 | |||
10.20 Amendment and Restatement | 85 | |||
10.21 Oral Agreements Not Enforceable | 85 | |||
SCHEDULES | ||||
1.01 Special Adjustments to Consolidated Adjusted EBITDA | ||||
2.01 Commitments and Applicable Percentages | ||||
2.03(a) Existing Letters of Credit |
iii
SECTION | PAGE | |||
5.06 Litigation | ||||
5.13 Subsidiaries and Other Equity Investments | ||||
7.01 Existing Liens | ||||
7.03(b) Existing Indebtedness | ||||
7.03(f) OMAX Subordinated Debt | ||||
7.11 Financial Covenants | ||||
10.02 Agent’s Office, Certain Addresses for Notices |
Form of | ||||||
A | Revolving Loan Notice | |||||
B | Swing Line Loan Notice | |||||
C | Note | |||||
D | Compliance Certificate | |||||
E | Guaranty Agreement | |||||
F-1 | Borrower Pledge Agreement | |||||
F-2 | Guarantor | Pledge | Agreement | |||
G-1 | Borrower | Security | Agreement | |||
G-2 | Guarantor | Security | Agreement | |||
H-1 | Assignment | and | Assumption | |||
H-2 | Administrative | Questionnaire | ||||
I | Subordination Agreement |
iv
1
Consolidated | ||||||||||
Pricing Level | Leverage Ratio | Commitment Fee | Eurodollar Rate + | Base Rate + | Letters of Credit | |||||
1 | ≥ 3.00 | .75% | 4.00% | 3.00% | 4.00% | |||||
2 | ≥ 2.50 but < 3.00 | .625% | 3.75% | 2.75% | 3.75% | |||||
3 | ≥ 1.75 but < 2.50 | .50% | 3.50% | 2.50% | 3.50% | |||||
4 | ≥1.00 but < 1.75 | .375% | 3.25% | 2.25% | 3.25% | |||||
5 | < 1.00 | .25% | 3.00% | 2.00% | 3.00% |
2
3
4
5
6
7
8
Eurodollar Rate | = | Eurodollar Base Rate | ||||
1.00 — Eurodollar Reserve Percentage |
9
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FLOW INTERNATIONAL CORPORATION | ||||
By: | /s/ Allen Hsien | |||
Name: | Allen Hsien | |||
Title: | ||||
BANK OF AMERICA, N.A., as Agent | ||||
By: | /s/ Ken Puro | |||
Name: | Ken Puro | |||
Title: | Vice President | |||
BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender | ||||
By: | /s/ Gordon H. Gray | |||
Name: | Gordon H. Gray | |||
Title: | Sr. V.P. | |||
U.S. BANK NATIONAL ASSOCIATION, as a Lender | ||||
By: | /s/ Kathleen J. Johanson | |||
Name: | Kathleen J. Johanson | |||
Title: | Sr. V.P. | |||
WELLS FARGO BANK N.A., as a Lender | ||||
By: | /s/ Sarah Eddy | |||
Name: | Sarah Eddy | |||
Title: | Relationship Manager | |||
86
1 | 2 | 3 | 4 | 5 | ||||||||||||||||||
The end of Fiscal | The end of Fiscal | The end of Fiscal | The end of Fiscal | The end of Fiscal | ||||||||||||||||||
Flow Adjustment | 4th | 1st | 2nd | 3rd | 4th | |||||||||||||||||
Calculation Date | quarter 2009 | quarter 2010 | quarter 2010 | quarter 2010 | quarter 2010 | |||||||||||||||||
A | Costs related to | |||||||||||||||||||||
terminated | ||||||||||||||||||||||
Acquisition | Up to $ 4,000,000 | Up to $ 4,250,000 | Up to $ 4,250,000 | Up to $ 4,250,000 | Up to $ 250,000 | |||||||||||||||||
B | Application | |||||||||||||||||||||
business exit | ||||||||||||||||||||||
expenses and | ||||||||||||||||||||||
Burlington facility | ||||||||||||||||||||||
closedown expense | Up to $ 2,400,000 | Up to $ 700,000 | Up to $ 300,000 | $ 0 | $ 0 | |||||||||||||||||
C | Expenses relating | |||||||||||||||||||||
to settlement of | ||||||||||||||||||||||
OMAX patent | ||||||||||||||||||||||
litigation | $ 29,000,000 | $ 29,000,000 | $ 29,000,000 | $ 0 | $ 0 | |||||||||||||||||
D | Expenses relating | |||||||||||||||||||||
to reductions in | ||||||||||||||||||||||
force and closure | ||||||||||||||||||||||
of Borrower’s | ||||||||||||||||||||||
Taiwan | ||||||||||||||||||||||
manufacturing | ||||||||||||||||||||||
facility | Up to $ 700,000 | Up to $ 1,500,000 | Up to $ 1,500,000 | Up to $ 1,500,000 | Up to $ 800,000 |
87
88
89
AND APPLICABLE PERCENTAGES
Lender | Commitment | Applicable Percentage | ||||||
Bank of America, N.A. | $ | 15,000,000.00 | 37.500000000 | % | ||||
U.S. Bank National Association | $ | 13,000,000.00 | 32.500000000 | % | ||||
Wells Fargo Bank N.A. | $ | 12,000,000.00 | 30.000000000 | % | ||||
Total | $ | 40,000,000.00 | 100.000000000 | % |
90
Letter of Credit No. | Beneficiary | Amount | Expiration Date | |||||||
3099133 | Airbus Deutschland G | 278,242.05 | 11/30/09 | |||||||
3099203 | Airbus Deutschland G | 298,393.30 | 8/30/09 | |||||||
3099204 | Airbus Deutschland G | 269,407.15 | 9/30/09 | |||||||
3099274 | Airbus Deutschland G | 1,104,453.00 | 12/30/09 | |||||||
3099527 | Aerolia Toulouse | 447,330.40 | 11/30/09 | |||||||
3077450 | Commerzbank | 650,000.00 | 7/08/09 | |||||||
3091969 | Bank of America | 286,147.85 | 11/30/09 | |||||||
3093824 | Bank of America | 160,000.00 | 11/30/09 | |||||||
3093825 | Bank of America | 120,000.00 | 11/30/09 | |||||||
3098375 | Bank of America | 120,000.00 | 11/30/09 | |||||||
3098376 | Bank of America | 286,147.85 | 11/30/09 | |||||||
3098725 | Bank of America | 381,530.46 | 11/30/09 | |||||||
3098886 | Bank of America | 276,113.25 | 12/30/09 | |||||||
3098887 | Bank of America | 192,070.85 | 3/09/10 | |||||||
3098969 | Airbus France | 107,707.25 | 8/30/09 | |||||||
3098970 | Airbus France | 430,829.00 | 8/30/09 | |||||||
3098971 | Airbus France | 111,832.60 | 11/30/09 | |||||||
3099097 | Bank of America | 916,505.00 | 10/30/09 | |||||||
3099132 | Airbus Deutschland G | 1,112,968.20 | 11/30/09 |
91
1. | Crucible Incident (June 29, 2002) |
(a) | Joanne S. Anthony, as Administratrix of the Estate of Tony Anthony, Jr. v. Flow Autoclave Systems, Inc., f/k/a ABB Autoclave Systems, Inc., Northern United States District Court, District of New York, Case No. 5:04-CV-274. | ||
(b) | Travelers Property Casualty Company of America, a Connecticut corporation, f/n/a Travelers Indemnity Company of Illinois and Zurich American Insurance Company, a New York Corporation, as subrogees of Crucible Materials Corporation v. Flow Autoclave Systems, Inc., Supreme Court of the State of New York, Country of Onondaga, Index No. 2005-2126. | ||
(c) | Lumbermen’s Mutual Casualty Company v. Flow International Corporation, Flow Autoclave Systems, Inc., Flow Pressure Systems, ABB Pressure Systems, Avure Technologies AB, and Avure Technologies, Inc., United States District Court, Northern District of New York, Civil Action No. 09-CV-865. |
2. | Avure Claim. |
The Company has received a claim for indemnity from Avure Technologies under the September 2005 sale agreement for amounts, if any, that may become payable as a result of an ongoing tax audit of Avure’s Swedish subsidiary. |
92
Name of Owner | Name of Subsidiary | Jurisdiction of Formation | Percentage Ownership | |||||
Domestic Subsidiaries | ||||||||
Flow International Corporation | Caitra Technologies, Inc. (Inactive) | Washington | 100 | % | ||||
Flow International Corporation | Hydrodynamic Cutting Services, Inc. (in liquidation) | Louisiana | 100 | % | ||||
Flow International Corporation | Orange Acquisition Corporation (inactive) | Washington | 100 | % | ||||
Foreign Subsidiaries | ||||||||
Flow International Corporation | Flow China (Flow Ultra High Pressure Waterjet Technology (Shanghai) Co., Ltd.) | People’s Republic of China | 100 | % | ||||
Flow International Corporation | Flow Waterjet Hong Kong Limited | Hong Kong | 100 | % | ||||
Flow International Corporation | Flow Korea Corporation (in liquidation) | Korea | 100 | % | ||||
Flow International Corporation | Flow Asia Corporation | Republic of China, Taiwan | 100 | % | ||||
Flow International Corporation | Flow Asia International Ltd. | Republic of Mauritius | 1 | % | ||||
Flow Asia Corporation | Flow Asia International Ltd. | Republic of Mauritius | 99 | % | ||||
Flow International Corporation | Flow Japan Corporation | Japan | 100 | % | ||||
Flow International Corporation | Flow Europe GmbH | Germany | 100 | % |
93
Jurisdiction | ||||||||
of | ||||||||
Name of Owner | Name of Subsidiary | Formation | Percentage Ownership | |||||
Flow Europe GmbH | Flow Europe Manufacturing Verwaltungs GmbH | Germany | 100 | % | ||||
Flow Europe GmbH | Flow Italia, S.r.l. | Italia | 100 | % | ||||
Flow Europe GmbH | Flow France Sarl | France | 100 | % | ||||
Flow Europe GmbH | Flow U.K. Ltd. | United Kingdom | 100 | % | ||||
Flow Europe GmbH | Flow Iberica Corte Con Aqua Alta Presion, S.L. | Spain | 100 | % | ||||
Flow Europe GmbH | Flow Eastern Europe, s.r.o. | Czech Republic | 100 | % | ||||
Flow International Corporation | Flow Latino Americana Comercio Ltda., dba Flow South America | Brazil | 100 | % | ||||
Flow International Corporation | Flow Automation Systems Corporation | Ontario, Canada | 100 | % | ||||
Flow International Corporation | Flow Surface Preparation Europe Sagl in Liquidation | Switzerland | 100 | % | ||||
Flow International Corporation | Flow Holdings Sagl (Inactive) | Switzerland | 100 | % | ||||
Flow International Corporation | Flow Holdings BVBA (Inactive) | Belgium | 100 | % | ||||
Flow Holdings BVBA | Flow Access BVBA (Inactive) | Belgium | 100 | % | ||||
Flow International Corporation | Flow Holding Limited | United Kingdom | 100 | % | ||||
Part (b).Other Equity Investments. | ||||||||
Flow International Corporation | Dardi International Corporation | China | 5 | % |
94
FILE NUMBER AND | ||||
SECURED PARTY | DATE FILED | COLLATERAL DESCRIPTION | ||
Bank of America, N.A. (by | 891840371 | Accounts, chattel paper, documents, instruments, | ||
assignment from U.S. Bank | 07-03-1989 | general intangibles, leases, leasehold interests, | ||
of Washington, N.A. on | inventory (including raw materials and stock in | |||
09-02-1998)) | trade), equipment, machinery office equipment, | |||
fixtures, patents, trademarks, tradenames and service | ||||
marks, now existing or hereafter arising, and all | ||||
proceeds. | ||||
Jules & Associates, Inc. | 20011030227 | Leased equipment specifically identified on an Exhibit. | ||
04-13-2001 | ||||
Minolta Business Solutions | 200200459558 | Leased equipment specifically identified on an Exhibit. | ||
12-12-2001 | ||||
IBM Credit LLC | 200417601047 | Leased equipment referenced. | ||
06-24-2004 | ||||
IBM Credit LLC | 200421201790 | Leased equipment referenced. | ||
07-30-2004 | ||||
IBM Credit LLC | 200423667372 | Leased equipment referenced. | ||
08-23-2004 | ||||
IBM Credit LLC | 200424587952 | Leased equipment referenced. | ||
09-01-2004 | ||||
IBM Credit LLC | 200425819717 | Leased equipment referenced. | ||
09-14-2004 | ||||
IBM Credit LLC | 200426133720 | Leased equipment referenced. | ||
09-17-2004 | ||||
IBM Credit LLC | 200427872031 | Leased equipment referenced. | ||
10-04-2004 | ||||
IBM Credit LLC | 200428910909 | Leased equipment referenced. | ||
10-15-2004 | ||||
IBM Credit LLC | 200429526444 | Leased equipment referenced. | ||
10-21-2004 | ||||
IBM Credit LLC | 200431687218 | Leased equipment referenced. | ||
11-11-2004 |
95
FILE NUMBER AND | ||||
SECURED PARTY | DATE FILED | COLLATERAL DESCRIPTION | ||
Kennametal Inc. dba | 200433531441 | Inventory manufactured and owned by Kennametal and | ||
Boride Products | 11-29-2004 | sold under the brand name of Boride Products, | ||
consigned at 23500 64th Ave S., Kent, WA | ||||
98032. | ||||
IBM Credit LLC | 200502583609 | Leased equipment referenced. | ||
01-25-2005 | ||||
IBM Credit LLC | 200518726328 | Leased equipment referenced. | ||
07-06-2005 | ||||
Bank of America, N.A. | 200519554111 | All Assets. | ||
07-11-2005 | ||||
Wells Fargo Financial | 200527783398 | Specific Canon equipment identified in the collateral | ||
Leasing, Inc. | 10-04-2005 | description by serial number. | ||
Banc of America Leasing & | 200806631136 | Leased equipment specifically identified on an Exhibit. | ||
Capital, LLC ((by | 03-05-2008 | |||
assignment from Fidelity National Capital, Inc. on 03-14-2008) | ||||
Kuka Robotics Corporation | 200822586724 | Specifically identified equipment. | ||
08-12-2008 | ||||
Fidelity National | 200823210338 | Specifically identified equipment. | ||
Capital, Inc. | 12-10-2008 | |||
Kuka Robotics Corporation | 200833057404 | Specifically identified equipment. | ||
11-25-2008 | ||||
Fidelity National | 200833059170 | Specifically identified equipment. | ||
Capital, Inc./Bank of | 11-25-2008 | |||
America Leasing & Capital, LLC | ||||
Mazak Corporation | 200906182217 | Specifically identified equipment. | ||
03-02-2009 | ||||
Banc of America Leasing & | 200907010007 | Leased equipment referenced. | ||
Capital, LLC (by | 03-10-2009 | |||
assignment from Fidelity National Capital, Inc. on 05/02/2009) | ||||
Kuka Robotics Corporation | 200911007284 | Specifically identified equipment. | ||
04-20-2009 |
96
Amount | ||||||
as of January 31, | ||||||
2009 | ||||||
Name of Debtor | Name of Creditor | (in 000s) | ||||
Flow Asia Corporation | First Commercial Bank | $ | 1,481 | |||
Flow Asia Corporation | Mega International Commercial Bank | $ | 740 | |||
Flow Asia Corporation | Mega International Commercial Bank | $ | 1,875 | |||
Flow International Corporation | Fidelity National Capital | $ | 683 | |||
Flow International Corporation | Copiers Northwest | $ | 104 | |||
Flow International Corporation | Microsoft Finance | $ | 559 | |||
97
98
As of end of | ||||||||||||||||||||
As of end of | As of end of | As of end of | As of end of | Borrower's 4th | ||||||||||||||||
Borrower's | Borrower's | Borrower's 2nd | Borrower's | fiscal | ||||||||||||||||
4th | 1st | fiscal | 3rd | quarter 2010 and | ||||||||||||||||
fiscal quarter 2009 | quarter fiscal 2010 | quarter 2010 | fiscal quarter 2010 | thereafter | ||||||||||||||||
If no charge is recorded related to the Indemnification Claim | 1.75:1 | 2.85:1 | 2.85:1 | 2.25:1 | 2.00:1 | |||||||||||||||
If a charge is recorded related to the Indemnification Claim | 2.00:1 | 3.00:1 | 3.25:1 | 2.50:1 | 2.00:1 |
99
As of end of | As of end of | As of end of | As of end of | As of end of | As of end of | |||||||||||||||||||
Borrower's | Borrower's | Borrower's 2nd | Borrower's | Borrower's 4th | Borrower's | |||||||||||||||||||
4th | 1st | fiscal | 3rd | fiscal | 1st | |||||||||||||||||||
fiscal quarter 2009 | fiscal quarter 2010 | quarter 2010 | fiscal quarter 2010 | quarter 2010 | fiscal quarter 2011 | |||||||||||||||||||
and thereafter | ||||||||||||||||||||||||
If no charge is recorded related to the Indemnification Claim | 3.00:1 | 3.00:1 | 3.00:1 | 3.00:1 | 3.00:1 | 3.50:1 | ||||||||||||||||||
If a charge is recorded related to the Indemnification Claims | 3.00:1 | 3.00:1 | 2.50:1 | 3.00:1 | 3.00:1 | 3.50:1 |
100
CERTAIN ADDRESSES FOR NOTICES
23500 64th Avenue South
Kent, Washington 98032
Attention: Chief Financial Officer
Telephone: (253) 850-3500
Telecopier: (253) 813-3311
Electronic Mail: AHsieh@flowcorp.com
Copy to: General Counsel; jleness@flowcorp.com
Website Address: www.flowcorp.com
U.S. Taxpayer Identification Number: 91-1104842
(for payments and Requests for Credit Extensions):
2001 Clayton Road, 2nd Floor
Concord, CA 94520
Mail Code: CA4-702-02-25
Attention: Noelia Adina
Telephone: 925-675-8027
Facsimile: 888-211-4649
Electronic Mail: noelia.adina@bankofamerica.com
Account No.: 3750836479
Reference: Flow International Corporation
ABA# 026009593
New York, NY
ABA No. 026009593
Account No: 3750836479
Account Name: Corporate FTA
Attn: Noelia Adina
Reference: Flow International Corporation
101
800 Fifth Avenue, Floor 17
Seattle, WA 98104
Mail Code: WA1-501-17-32
Attention: Ken Puro
Telelephone: 206-358-0138
Facsimile: 415-343-0559
Electronic Mail: Ken.Puro@Bankofamerica.com
Trade Operations — Los Angeles #226521
1000 West Temple Street, Suite Level 7
Mail Code: CA9-705-07-05
Los Angeles, CA 90017-1466
Attention: Tai Lu
Telephone: 213-481-7840
Facsimile: 213-580-8442
2001 Clayton Road, 2nd Floor
Concord, CA 94520
Mail Code: CA4-702-02-25
Attention: Noelia Adina
Telephone: 925-675-8027
Facsimile: 888-211-4649
Electronic Mail: noelia.adina@bankofamerica.com
Account No.: 3750836479
Reference: Flow International Corporation
ABA# 026009593
102
1. | On (a Business Day). | ||
2. | In the amount of $ . | ||
3. | Comprised of . | ||
[Type of Revolving Loan requested] | |||
4. | For Eurodollar Rate Loans: with an Interest Period of ____ months. |
FLOW INTERNATIONAL CORPORATION | ||
By: | ||
Name: | ||
Title: |
A-1
1. | On (a Business Day). | ||
2. | In the amount of $ . |
FLOW INTERNATIONAL CORPORATION | ||
By: | ||
Name: | ||
Title: |
B-1
$ |
C-1
FLOW INTERNATIONAL CORPORATION | ||||
By: | ||||
Name: | ||||
Title: | ||||
C-2
Amount of Principal | Outstanding | |||||||||||
End of Interest | or Interest Paid | Principal Balance | ||||||||||
Date | Type of Loan Made | Amount of Loan Made | Period | This Date | This Date | Notation Made By | ||||||
C-3
To: | Bank of America, N.A., as Agent |
D-1
FLOW INTERNATIONAL CORPORATION | ||||
By: | ||||
Name: | ||||
Title: | ||||
D-2
to the Compliance Certificate
($ in 000’s)
I. | Section 1 of Schedule 7.11 — Consolidated Senior Leverage Ratio. | |||||||||||||
A. | Consolidated Funded Indebtedness at Statement Date: | $ | ||||||||||||
B. | OMAX Subordinated Debt at Statement Date: | |||||||||||||
C. | Consolidated Adjusted EBITDA for four consecutive fiscal quarters ending on the above date (“Subject Period”) (Line III.A.8 below): | $ | ||||||||||||
D. | Consolidated Senior Leverage Ratio ((Line I.A - Line 1.B)¸ Line I.C): | to 1 | ||||||||||||
Maximum permitted: | See Schedule 7.11 | |||||||||||||
II. | Section 2 of Schedule 7.11 — Consolidated Adjusted EBITDA. | |||||||||||||
A. | Consolidated Adjusted EBITDA for the Subject Period (Line III.A.8 below): | $ | ||||||||||||
Minimum required: | $ | 8,000/$10,000 | ||||||||||||
III. | Section 3 of Schedule 7.11 — Consolidated Fixed Charge Coverage Ratio. | |||||||||||||
A. | Consolidated Adjusted EBITDA for Subject Period: | |||||||||||||
1. | Consolidated Net Income for Subject Period: | $ | ||||||||||||
2. | Consolidated Interest Charges for Subject Period: | $ | ||||||||||||
3. | Provision for income taxes for Subject Period: | $ | ||||||||||||
4. | Depreciation expenses for Subject Period: | $ | ||||||||||||
5. | Amortization expenses for Subject Period: | $ | ||||||||||||
6. | Non-recurring non-cash reductions of Consolidated Net Income for Subject Period: | $ | ||||||||||||
7. | Flow Adjustment Amount (if Subject Period is ending as of any Flow Adjustment Calculation Date): | $ | ||||||||||||
8. | Consolidated Adjusted EBITDA (Lines III.A.1 + 2 + 3 + 4 + 5 + 6 + 7): | $ | ||||||||||||
B. | Cash payments for taxes: | $ | ||||||||||||
C. | Consolidated Interest Charges (except payment-in-kind interest pursuant to OMAX Subordinated Debt and financing costs deferred prior to the Closing Date) for Subject Period: $ | |||||||||||||
D. | Current portion of other long term debt2: | $ | ||||||||||||
2 | That is, long term debt other than long term debt under this Agreement, under the credit facility for working capital purposes between Flow Asia Corporation and First Commerce Bank and under the credit facility for working capital purposes between Flow Asia Corporation and Mega International Commercial Bank). |
D-3
E. | Consolidated Fixed Charge Coverage Ratio | |||||||||
((Line III.A.8 — Line III.B)¸ (Line III.C + Line III.D) : | $ | |||||||||
Minimum required: | See Schedule 7.11 |
D-4
to the Compliance Certificate
($ in 000’s)
(in accordance with the definition of Consolidated Adjusted EBITDA
as set forth in the Agreement)
Twelve | ||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Months | ||||||||||||||||
Consolidated AdjustedEBITDA | Ended | Ended | Ended | Ended | Ended | |||||||||||||||
Consolidated Net Income | ||||||||||||||||||||
+ Consolidated Interest Charges | ||||||||||||||||||||
+ income taxes | ||||||||||||||||||||
+ depreciation expense | ||||||||||||||||||||
+ amortization expense | ||||||||||||||||||||
+ non-recurring non-cash expenses | ||||||||||||||||||||
+Flow Adjustment Amount (If Subject Period is ending as of any Flow Adjustment Calculation Date) | ||||||||||||||||||||
= Consolidated Adjusted EBITDA |
D-5
E-1
E-2
E-3
E-4
E-5
E-6
E-7
E-8
E-9
E-10
E-11
23500 64th Avenue South
Kent, Washington 98032
Attn: General Counsel
Telephone: 253-813-9376
Facsimile: 253-813-3280
E-12
E-13
E-14
E-15
[________________________________] | ||||
By: | ||||
Name: | ||||
Title: | ||||
E-16
E-17
E-18
[NEW GUARANTOR] | ||||
By: | ||||
Name: | ||||
Title: |
Address: | ||||
BANK OF AMERICA, N.A., as Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
E-19
F-1-1
F-1-2
F-1-3
F-1-4
F-1-5
F-1-6
F-1-7
F-1-8
F-1-9
F-1-10
F-1-11
F-1-12
F-1-13
F-1-14
F-1-15
F-1-16
F-1-17
F-1-18
FLOW INTERNATIONAL CORPORATION | ||||
By: | ||||
Name: | ||||
Title: | ||||
BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
F-1-19
Part (a). | Pledged Domestic Material Subsidiaries: | |
None. | ||
Part (b). | Pledged Foreign Subsidiaries: |
Name of Subsidiary | Number of Shares | Certificate Number | Percentage Ownership | |||||||||
Flow Asia Corporation, a Taiwanese Corporation | 6,500,000 | 002 | 65 | % | ||||||||
Flow Europe GmbH, a German Corporation | N/A | (no share certificates issued) | 65 | % | ||||||||
Flow Automation Systems Corporation, an Ontario Corporation | 1,295,125 | C-2 | 65 | % | ||||||||
Flow Japan Corporation, a Japanese corporation | 10,000 | FJC00001 | 12.5 | % | ||||||||
Flow Japan Corporation, a Japanese corporation | 10,000 | FJC00002 | 12.5 | % | ||||||||
Flow Japan Corporation, a Japanese corporation | 10,000 | FJC00003 | 12.5 | % | ||||||||
Flow Japan Corporation, a Japanese corporation | 10,000 | FJC00004 | 12.5 | % |
F-1-20
Name of Subsidiary | Number of Shares | Certificate Number | Percentage Ownership | |||||||||
Flow Japan Corporation, a Japanese corporation | 10,000 | FJC00005 | 12.5 | % | ||||||||
Flow Japan Corporation, a Japanese corporation | 1,000 | FJC00008 | 1.25 | % | ||||||||
Flow Japan Corporation, a Japanese corporation | 1,000 | FJC00009 | 1.25 | % | ||||||||
Flow Latino Americana Comercio Ltda., a Brazilian company | 1,000,000 quotas 650,000 quotas | (no share certificates issued) | 65 | % |
Name of Owner | Name of Subsidiary | Jurisdiction of Formation | ||
Flow International Corporation | Flow Surface Preparation Europe Sagl in Liquidation | Switzerland | ||
Flow International Corporation | Flow Holdings Sagl | Switzerland | ||
Flow International Corporation | Flow Holdings BVBA | Belgium | ||
Flow Holdings BVBA | Flow Access BVBA | Belgium | ||
Flow International Corporation | Flow Ultra High Pressure Waterjet Technology (Shanghai) Co., Ltd. | People’s Republic of China | ||
Flow International Corporation | Flow Waterjet Hong Kong Limited | Hong Kong | ||
Flow International Corporation | Flow Korea Corporation | Korea |
F-1-21
Name of Owner | Name of Subsidiary | Jurisdiction of Formation | ||
Flow International Corporation | Flow Holding Limited | United Kingdom | ||
Flow International Corporation | Dardi International Corporation | People’s Republic of China |
F-1-22
F-1-23
Name of Subsidiary | Number of Shares | Certificate Number | Percentage Ownership | |||
FLOW INTERNATIONAL CORPORATION | ||||
By: | ||||
Name: | ||||
Title: | ||||
Accepted: BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
F-1-24
F-2-1
F-2-2
F-2-3
F-2-4
F-2-5
F-2-6
F-2-7
F-2-8
F-2-9
F-2-10
F-2-11
F-2-12
F-2-13
F-2-14
F-2-15
F-2-16
F-2-17
F-2-18
[ | ] | |||
By: | ||||
Name: | ||||
Title: | ||||
BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
F-2-19
Name of | Certificate | Percentage | ||||
Subsidiary | Number of Shares | Number | Ownership | |||
Name of | Certificate | Percentage | ||||
Subsidiary | Number of Shares | Number | Ownership | |||
F-2-20
F-2-21
Name of | Certificate | Percentage | ||||
Subsidiary | Number of Shares | Number | Ownership | |||
By: | ||||
Name: | ||||
Title: | ||||
Accepted: BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
F-2-22
F-2-23
F-2-24
[NEW PLEDGOR] | ||||
By: | ||||
Name: | ||||
Title: | ||||
Address: | ||||
Accepted: BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
F-2-25
G-1-1
G-1-2
G-1-3
G-1-4
G-1-5
G-1-6
G-1-7
G-1-8
G-1-9
G-1-10
G-1-11
G-1-12
G-1-13
G-1-14
G-1-15
G-1-16
G-1-17
G-1-18
G-1-19
G-1-20
G-1-21
G-1-22
G-1-23
G-1-24
G-1-25
G-1-26
G-1-27
FLOW INTERNATIONAL CORPORATION | ||||
By: | ||||
Name: | ||||
Title: | ||||
BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
G-1-28
LEGAL NAME AND TRADE NAMES
Part (a). | Location of chief executive office. | |
23500 64th Avenue South, Kent, Washington 98032 | ||
Part (b). | Legal name, state of formation and organization number. | |
Flow International Corporation, a Washington corporation | ||
Federal Tax ID: 91-1104842 | ||
Part (c). | Trade names. | |
None. |
G-1-29
G-1-30
Part (a). | Copyrights. |
None. |
Part (b). | Copyright licenses. |
None. |
G-1-31
Part (a). | Letters patent. | |
See attached Schedule. | ||
Part (b). | Applications for letters patent. | |
See attached Schedule. | ||
Part (c). | Patent licenses. |
G-1-32
Part (a). | Trademarks. | |
See attached Schedule. | ||
Part (b). | Trademark licenses. | |
None. |
G-1-33
Account Holder | Depository Bank | Account Number | ||
Flow International Corporation | Bank of America, N.A. | 68807700 | ||
Flow International Corporation | Bank of America, N.A. | 68807601 | ||
Flow International Corporation | Bank of America, N.A. | 68807619 | ||
Flow International Corporation | Bank of America, N.A. | 15842412 | ||
Flow International Corporation | Bank of America, N.A | 3299842874 | ||
Flow International Corporation | Bank of America, N.A | 2234711519OJM | ||
Flow International Corporation | Bank of America, N.A | 15312200 | ||
Flow International Corporation | Bank of America, N.A | 15312408 | ||
Flow International Corporation | Wells Fargo Bank, N.A. | 4121498794 | ||
Flow International Corporation | U.S. Bank National | 153500746976 | ||
Association | ||||
Flow Robotics (a division of | Bank of America, N.A. | 6881 7915 | ||
Flow International Corporation) |
G-1-34
1. | Caitra Technologies, Inc. (f/k/a Avure Technologies, Inc.) | |
Incorporated in Washington | ||
c/o Flow International Corporation, Legal Department | ||
23500 64th Avenue South | ||
Kent, Washington 98032 | ||
FEIN 03-0475349 | ||
2. | Hydrodynamic Cutting Services, Inc. (In Liquidation) | |
Incorporated in Louisiana | ||
c/o Flow International Corporation, Legal Department | ||
23500 64th Avenue South | ||
Kent, Washington 98032 | ||
FEIN 72-1277789 | ||
3. | Orange Acquisition Corporation (Inactive) | |
Incorporated in Washington | ||
c/o Flow International Corporation, Legal Department | ||
23500 64th Avenue South | ||
Kent, Washington 98032 | ||
FEIN |
1. | Flow Ultra High Pressure Waterjet Technology (Shanghai) Co., Ltd. | |
755 South Lian Hua Rd. | ||
Minhang District, Shanghai 201 100 China | ||
People’s Republic of China | ||
2. | Flow Waterjet Hong Kong Limited | |
Hose B7, Regalia Bay, No.88 Wong Ma KOK Road Hong Kong | ||
Hong Kong | ||
3. | Flow Korea Corporation | |
173-290 Gajwa-dong, Seo-ku, | ||
Incheon, Korea 404-250 |
G-1-35
Korea | ||
4. | Flow Asia Corporation | |
1F, No. 5, Technology Road | ||
Science-Based Industrial Park | ||
Hsin-chu, 300, Taiwan R.O.C. | ||
Taiwan, Republic of China | ||
5. | Flow Asia International Ltd. | |
Level 2, MaxCity Building | ||
Remy Ollier Street, Port Louis, Mauritius | ||
Republic of Mauritius | ||
6. | Flow Japan Corporation | |
Level 18 Yebisu Garden Place Tower | ||
4-20-3 Ebisu, Shibuya-ku, Tokyo 150-6018 | ||
Japan | ||
7. | Flow Europe GmbH | |
Gewerbestrase 95 | ||
D750515 Bretten, Germany | ||
Germany | ||
8. | Flow Europe Manufacturing Verwaltungs GmbH | |
Gewerbestrase 95 | ||
D750515 Bretten, Germany | ||
Germany | ||
9. | Flow Italia, S.r.l. | |
Strada per Turbigo 64 | ||
200010 Arluno (MI), Italy | ||
Italy | ||
10. | Flow France Sarl | |
38 Place des Pavillons | ||
F-69007 Lyon, France | ||
France |
G-1-36
11. | Flow U. K. Ltd. | |
19 Wheatfield Way | ||
Hinckley, LE10 1YG, United Kingdom | ||
United Kingdom | ||
12. | Flow Iberica Corte Con Aqua Alta Presion, S.L. | |
Poligono “Europolis” | ||
Calle T — Nave 5B | ||
Apartado Correos 1044 | ||
28230 Las Rozas | ||
Madrid, Spain | ||
Spain | ||
13. | Flow Eastern Europe, s.r.o. | |
Holandská 2/4 | ||
Spielberk Office Center | ||
CZ-639 00 Brno Czech Republic | ||
Czech Republic | ||
14. | Flow Latino Americana Comercio Ltda. | |
Rua do Curtume, 694 — Lapa | ||
San Paulo, SP Brazil 05065-001 | ||
Brazil | ||
15. | Flow Automation Systems Corporation | |
c/o Blake, Cassels & Graydon LLP | ||
Suite 2800 Commerce Court West | ||
Toronto, Ontario M5L 1A9 Canada | ||
Canada | ||
16. | Flow Surface Preparation Europe Sagl in Liquidation | |
c/o Flow International Corporation, Legal Department | ||
23500 64th Avenue South | ||
Kent, Washington 98032 | ||
Switzerland | ||
17. | Flow Holdings Sagl (Inactive) | |
c/o Flow International Corporation, Legal Department | ||
23500 64th Avenue South | ||
G-1-37
Kent, Washington 98032 | ||
Switzerland | ||
18. | Flow Holdings BVBA (Inactive) | |
c/o Flow International Corporation, Legal Department | ||
23500 64th Avenue South | ||
Kent, Washington 98032 | ||
Belgium | ||
19. | Flow Access BVBA (Inactive) | |
c/o Flow International Corporation, Legal Department | ||
23500 64th Avenue South | ||
Kent, Washington 98032 | ||
Belgium | ||
20. | Flow Holding Limited | |
110 Cannon Street | ||
London, EC4N 6AR United Kingdom | ||
United Kingdom |
G-1-38
Copyright No. | Description of Copyright | Date of Copyright | |||||||||||
COPYRIGHT APPLICATIONS | |||||||||||||
Copyright Application No. | Description of Copyright Applied For | Date of Copyright Application |
G-1-39
Very truly yours, FLOW INTERNATIONAL CORPORATION | ||||
By: | ||||
Name: | ||||
Title: | ||||
By: | ||||
Name: | ||||
Title: | ||||
G-1-40
Patent No. | Description of Patent | Date of Patent |
Description of Patent | Date of Patent | |||||||||
Patent Application No. | Applied For | Application |
G-1-41
Very truly yours, FLOW INTERNATIONAL CORPORATION | ||||
By: | ||||
Name: | ||||
Title: | ||||
By: | ||||
Name: | ||||
Title: | ||||
G-1-42
Trademark No. | Description of Trademark | Date of Trademark | |||||||||||
TRADEMARK APPLICATIONS | |||||||||||||
Trademark Application No. | Description of Trademark Applied For | Date of Trademark Application |
Very truly yours, FLOW INTERNATIONAL CORPORATION | ||||
By: | ||||
Name: | ||||
Title: | ||||
By: | ||||
Name: | ||||
Title: | ||||
G-1-44
G-2-1
G-2-2
G-2-3
G-2-4
G-2-5
G-2-6
G-2-7
G-2-8
G-2-9
G-2-10
G-2-11
G-2-12
G-2-13
G-2-14
G-2-15
G-2-16
G-2-17
G-2-18
G-2-19
G-2-20
G-2-21
G-2-22
G-2-23
G-2-24
G-2-25
G-2-26
[_________________________] | ||||
By: | ||||
Name: | ||||
Title: | ||||
BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
G-2-27
G-2-28
G-2-29
G-2-30
G-2-31
G-2-32
G-2-33
Copyright No. | Description of Copyright | Date of Copyright | ||
Copyright Application No. | Description of Copyright Applied For | Date of Copyright Application | ||
G-2-34
Very truly yours, [DEBTOR NAME] | ||||
By: | ||||
Name: | ||||
Title: | ||||
Acknowledged and Accepted: BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
G-2-35
Patent No. | Description of Patent | Date of Patent | ||
Patent Application No. | Description of Patent Applied For | Date of Patent Application | ||
G-2-36
Very truly yours, [DEBTOR NAME] | ||||
By: | ||||
Name: | ||||
Title: | ||||
Acknowledged and Accepted: BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
G-2-37
Trademark No. | Description of Trademark | Date of Trademark | ||
Trademark Application No. | Description of Trademark Applied For | Date of Trademark Application | ||
G-2-38
Very truly yours, [DEBTOR NAME] | ||||
By: | ||||
Name: | ||||
Title: | ||||
Acknowledged and Accepted: BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
G-2-39
G-2-40
G-2-41
[NEW DEBTOR] | ||||
By: | ||||
Name: | ||||
Title: | ||||
Address: | ||||
Legal name: | ||||
Jurisdiction of formation: | ||||
Accepted: BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
G-2-42
OF
ASSIGNMENT AND ASSUMPTION
1. | Assignor[s]: ____________________ | |
2. | Assignee[s]: ____________________ for each Assignee, indicate [Affiliate][Approved Fund] of[identify Lender] | |
3. | Borrower: FLOW INTERNATIONAL CORPORATION, a Washington corporation |
H-1-1
4. | Administrative Agent: Bank of America, N.A., as the administrative agent under the Credit Agreement |
5. | Credit Agreement: Second Amended and Restated Credit Agreement, dated as of[June ___, 2009], among FLOW INTERNATIONAL CORPORATION, the Lenders from time to time party thereto, Bank of America, N.A., as Agent, L/C Issuer and Swing Line Lender. |
Aggregate | ||||||||||||||||||||||||||||||
Amount of | Amount of | Percentage | ||||||||||||||||||||||||||||
Commitment/Loans | Commitment/Loans | Assigned of | ||||||||||||||||||||||||||||
Assignor[s] | Assignee[s] | Facility Assigned | for all Lenders | Assigned | Commitment/Loans | CUSIP No. | ||||||||||||||||||||||||
$ | $ | % | ||||||||||||||||||||||||||||
$ | $ | % | ||||||||||||||||||||||||||||
$ | $ | % | ||||||||||||||||||||||||||||
ASSIGNOR [NAME OF ASSIGNOR] | ||||
By: | ||||
Title: | ||||
ASSIGNEE [NAME OF ASSIGNEE] | ||||
By: | ||||
Title: | ||||
H-1-2
[Consented to and]Accepted: BANK OF AMERICA, N. A., as Administrative Agent | ||||
By: | ||||
Title: | ||||
[Consented to:] | ||||
By: | ||||
Title: |
H-1-3
ASSIGNMENT AND ASSUMPTION
H-1-4
H-1-5