Exhibit 10.2

 

[Chase]

 

October 17, 2005

 

Lydall, Inc.

Lydall Deutschland Holding GmbH

One Colonial Road

Manchester, Connecticut 06045

 

Re: Credit Agreement / Waiver.

 

Ladies and Gentlemen:

 

Reference is made to that certain Credit Agreement dated as of July 14, 1999 (as
amended and restated as of May 13, 2002, as amended and restated as of
August 29, 2003, as amended as of July 27, 2004 and as amended as of February 1,
2005, the “Credit Agreement”) among Lydall, Inc., a Delaware corporation (the
“Borrower”); Lydall Deutschland Holding GmbH (the “Subsidiary Borrower”); each
of the financial institutions which is a signatory thereto as a “Lender” (the
“Lenders”); JPMorgan Chase Bank, as administrative agent for the Lenders (the
“Administrative Agent”); and Bank of New York, as documentation agent for the
Lenders (the “Documentation Agent”). All terms used herein and not defined
herein shall have the meanings ascribed to them in the Credit Agreement.

 

Until the Borrower delivers financial statements to the Lenders for the fiscal
quarter ending December 31, 2005 and certifies that no Default has occurred, the
Borrower agrees not to make, or permit any Subsidiary to make, any Restricted
Payment otherwise permitted by Section 6.06(a)(iii) of the Credit Agreement.
Subject to the foregoing, each of the Lenders waives noncompliance by the
Borrower with Section 6.16(b) of the Credit Agreement for the fiscal quarter
ended September 30, 2005, provided that the Consolidated EBITDA to be reported
under section 5.01(b,d) for the fiscal quarter ended September 30, 2005 is not
less than $20,000,000.

 

Except as specifically set forth herein, the terms of this letter shall not
operate as a waiver by the Administrative Agent, the Documentation Agent or the
Lenders of any affirmative, negative or financial covenant contained in the
Credit Agreement or otherwise prejudice the rights, remedies or powers of the
Administrative Agent, the Documentation Agent or any Lender under the Credit
Agreement, the other Loan Documents or applicable law. Except as expressly
provided herein: (i) no terms and provisions of the Loan Documents are modified
or changed by this letter; and (ii) the terms and provisions of the Loan
Documents shall continue in full force and effect.

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Very truly yours,

JPMORGAN CHASE BANK, N.A. individually and as Administrative Agent      

By

  /S/ PETER M. KILLEA    

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    Name: Peter M. Killea    

Title: Vice President

 

 

THE BANK OF NEW YORK, individually and as Documentation Agent      

By

  /S/ SCOTT BOGNAR    

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Name: Scott Bognar

   

Title: Vice President

 

 

WEBSTER BANK      

By

  /S/ MATTHEW O. RILEY    

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Name: Matthew O. Riley

   

Title: Senior Vice President

 

 

BROWN BROTHERS HARRIMAN & CO.      

By

  /S/ JOHN D. ROGERS    

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Name: John D. Rogers

   

Title: Senior Vice President

 

 

WACHOVIA BANK, N.A.

     

By

  /S/ PATRICIA S. GAUDREAU    

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Name: Patricia S. Gaudreau

   

Title: Senior Vice President

 

 

ACKNOWLEDGED AND AGREED:

 

LYDALL, INC.      

By

  /S/ THOMAS P. SMITH    

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Name: Thomas P. Smith

   

Title: Vice President, CFO and Treasurer

 

 

LYDALL DEUTSCHLAND HOLDING GMBH      

By

  /S/ DAVID FREEMAN    

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Name: David Freeman

   

Title: President and Chief Executive Officer