Document:

Exhibit
10.1

 

SECOND
AMENDMENT TO

CREDIT AGREEMENT

 

SECOND AMENDMENT TO
CREDIT AGREEMENT, dated as of March 23, 2004 (this “Amendment”), to
the Credit Agreement referred to below by and among APPLIED EXTRUSION
TECHNOLOGIES, INC., a Delaware corporation (the “Borrower”); the other
Credit Parties signatory hereto; GENERAL ELECTRIC CAPITAL CORPORATION, a
Delaware corporation (in its individual capacity, “GE Capital”), for
itself, as Lender, and as Agent for Lenders; and the other Lenders signatory
hereto.

 

W
I  T  N  E  S  S  E  T  H

 

WHEREAS, the Borrower,
the other Credit Parties, the Agent, and the Lenders are parties to that
certain Credit Agreement, dated as of October 3, 2003 (as amended,
supplemented or otherwise modified from time to time, prior to the date hereof,
the “Credit Agreement”);

 

WHEREAS, Borrower has
requested that Lenders increase the Maximum Amount of the revolving credit
facility by Ten Million Dollars ($10,000,000) to a total of Sixty Million
Dollars ($60,000,000);

 

WHEREAS, Borrower has
also requested to make certain changes to the financial covenants in the Credit
Agreement; and

 

WHEREAS, the Borrower,
the Agent and the Lenders have agreed to such requests and agree to amend
certain provisions of the Credit Agreement in the manner, and on the terms and
conditions, provided for herein.

 

NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.                                       Certain
Definitions.  Capitalized terms used
herein and not otherwise defined shall have the meanings ascribed to them in
the Credit Agreement.

 

2.                                       Amendments
to Credit Agreement.  As of the
Amendment Effective Date, the Credit Agreement shall be amended as follows:

 

(a)                                  Amendment
of Section 1.5 of the Credit Agreement.

 

(i)                                     Section 1.5
of the Credit Agreement shall be amended by deleting subsection (a) in its
entirety and replacing it with the following:

 

“(a)                            Borrower
shall pay interest to Agent, for the ratable benefit of Lenders in accordance
with the various Loans being made by each Lender, in arrears on each applicable

 

1

 

Interest Payment Date, at
the following rates:  (i) with respect
to the Revolving Credit Advances, the Index Rate plus the Applicable Revolver
Index Margin per annum or, at the election of Borrower, the applicable LIBOR
Rate plus the Applicable Revolver LIBOR Margin per annum, based on the
aggregate Revolving Credit Advances outstanding from time to time;  (ii) with respect to the Export-Related
Advances, the Index Rate plus the Applicable Revolver Index Margin per annum
or, at the election of Borrower, the applicable LIBOR Rate plus the Applicable
Revolver LIBOR Margin per annum, based on the aggregate Export-Related Advances
outstanding from time to time; (iii) with respect to the Term Loan, the Index
Rate plus the Applicable Term Loan Index Margin per annum or, at the election
of Borrower, the applicable LIBOR Rate plus the Applicable Term Loan LIBOR
Margin per annum; and (iv) with respect to the Swing Line Loan, the Index Rate
plus the Applicable Revolver Index Margin per annum.

 

The Applicable
Margins are as follows:

 

	
  Applicable
  Revolver Index Margin

  	
   

  	
  1.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Applicable
  Revolver LIBOR Margin

  	
   

  	
  2.75

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Applicable
  Term Loan Index Margin

  	
   

  	
  2.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Applicable
  Term Loan LIBOR Margin

  	
   

  	
  3.75

  	
  %

  

 

Each of the Applicable
Margins shall be adjusted (up or down) commencing with the effective date of
the Second Amendment to this Agreement (the “Second Amendment Effective Date”)
and thereafter prospectively on a quarterly basis as determined by Borrower’s
consolidated financial performance for the trailing four Fiscal Quarters.  Adjustments in the Applicable Margins shall
be determined as follows (i) beginning as of the Second Amendment Effective
Date (the “First Adjustment Date”) until delivery of Borrower’s
unaudited quarterly Financial Statements for the Fiscal Quarter ending
September 30, 2005 each of the Applicable Margins shall be increased
by 0.25% over the Applicable Margins set forth in the above table to 1.50%,
3.00%, 2.50% and 4.00% respectively (the “Increased Interest Rate Margins”),
(ii) subject to clause (i) above if no Increase Interest Rate Event exists,
each of the Applicable Margins shall be the Applicable Margins set forth in the
above table and (iii) if an Increase Interest Rate Event exists each of the
Applicable Margins shall be equal to the Increased Interest Rate Margins.

 

All adjustments in the
Applicable Margins after the First Adjustment Date shall be implemented monthly
on a prospective basis, for each calendar month commencing at least 5 days
after the date of delivery to Lenders of the quarterly unaudited or annual
audited (as applicable) Financial Statements evidencing the need for an
adjustment.  Concurrently with the
delivery of those Financial Statements, Borrower shall deliver to Agent and
Lenders a certificate, signed by its chief financial officer, setting forth in
reasonable detail the basis for the continuance of, or any change in, the
Applicable Margins.  Failure to timely
deliver such Financial Statements shall, in addition to any other remedy
provided for in this Agreement (including the application of the Default Rate),
result in the application of the Increased Interest 

 

2

 

Rate Margins until the
first day of the first calendar month following the delivery of those Financial
Statements demonstrating that such an increase is not required.  If a Default or Event of Default has
occurred and is continuing at the time any reduction in the Applicable Margins
is to be implemented, that reduction shall be deferred until the first day of
the first calendar month following the date on which such Default or Event of
Default is waived or cured.”

 

(ii)                                  Subsection (d)
of Section 1.5 of the Credit Agreement shall be amended by deleting the
parenthetical “(or upon the written request of Requisite Lenders)” from the
first sentence thereof and replacing it with the following: “(or upon the
written request of Requisite Lenders or any individual Lender holding at least
33% of either the Revolving Loan Commitment or the Term Loan Commitment)”.

 

(b)                                 Amendment
of Section 6.3 of the Credit Agreement. 
Section 6.3(a) of the Credit Agreement shall be amended by deleting
clause (vii) in its entirety and replacing it with the following:

 

“(vii) unsecured
Indebtedness of AET Canada to Investissement Quebec in an aggregate principal
amount not exceeding CDN$3,000,000 at any one time outstanding, provided that
(x) such Indebtedness is unsecured and contains no covenant or event of default
the effect of which is to impose a restriction, limitation or obligation in
favor of the lender not imposed in favor of the Lenders hereunder and (y)
payments with respect to the principal thereof or interest thereon are not
required prior to the third anniversary of the date of incurrence thereof;”

 

(c)                                  Amendment
of Section 11.2 of the Credit Agreement.  Subsection (c)(i) of Section 11.2 of the Credit
Agreement shall be amended by deleting clause (x) in its entirety and by
deleting the words “and (y)”.

 

(d)                                 Amendment
to Annex A of the Credit Agreement. 
The definitions of “Commitments” and “Revolving Loan Commitments”
contained in Annex A to the Credit Agreement shall be amended and restated in
their entirety as follows:

 

“Commitments”
means (a) as to any Lender, the aggregate of such Lender’s Revolving Loan
Commitment (including without duplication the Swing Line Lender’s Swing Line
Commitment as a subset of its Revolving Loan Commitment), and Term Loan Commitment
as set forth on Annex J to the Agreement or in the most recent
Assignment Agreement executed by such Lender, (b) as to all Lenders, the
aggregate of all Lenders’ Revolving Loan Commitments (including without
duplication the Swing Line Lender’s Swing Line Commitment as a subset of its
Revolving Loan Commitment) and Term Loan Commitments, which aggregate
commitment shall be One Hundred Million Dollars ($100,000,000) on the Closing
Date and One Hundred Eight Million Four Hundred Thirty Seven Thousand Five Hundred
Dollars ($108,437,500) as of March 23, 2004, and (c) the Export-Related
Loan Lender’s Export-Related Loan Commitment, as to each of clauses (a), (b)
and (c), as such Commitments may be reduced, amortized or adjusted from time to
time in accordance with the Agreement.”

 

“Revolving Loan
Commitment” means (a) as to any Lender, the aggregate commitment of such
Lender to make Revolving Credit Advances, incur Letter of Credit Obligations or
purchase Export-Related Loan Participations as set forth on Annex J
to the Agreement or in the 

 

3

 

most recent Assignment
Agreement executed by such Lender and (b) as to all Lenders, the aggregate
commitment of all Lenders to make Revolving Credit Advances, incur Letter of
Credit Obligations, or purchase Export-Related Loan Participations which
aggregate commitment shall be Fifty Million Dollars ($50,000,000) on the
Closing Date and Sixty Million Dollars ($60,000,000) as of March 23, 2004,
as such amount may be adjusted, if at all, from time to time in accordance with
the Agreement.

 

(e)                                  Addition
of Definitions to Annex A of the Credit Agreement.  The following definitions shall be added to
Annex A:

 

“Increased Interest
Rate Margins” has the meaning ascribed to it in Section 1.5(a).

 

“Increase Interest
Rate Event” means, upon delivery of the Financial Statements as provided
for in Section 1.5(a), either the failure of the EBITDA or the
failure of the Fixed Charge Coverage Ratio, in each case of Borrower and its
Subsidiaries on a consolidated basis for the 12-month period then ended, to be
greater than the amounts set forth opposite the applicable Fiscal Quarter
below:

 

	
  Fiscal Quarter ending

  	
   

  	
  EBITDA

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2004

  	
   

  	
  $

  	
  36,445,000

  	
   

  
	
  June 30,
  2004

  	
   

  	
  38,879,000

  	
   

  
	
  September 30,
  2004

  	
   

  	
  49,122,000

  	
   

  
	
  December 31,
  2004

  	
   

  	
  54,343,000

  	
   

  
	
  March 31,
  2005

  	
   

  	
  57,495,000

  	
   

  
	
  June 30,
  2005

  	
   

  	
  60,689,000

  	
   

  
	
  September 30,
  2005 and each Fiscal Quarter ending thereafter

  	
   

  	
  62,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Quarter ending

  	
   

  	
  Fixed
  Charge Coverage Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2004

  	
   

  	
  0.60

  	
   

  
	
  June 30,
  2004

  	
   

  	
  0.70

  	
   

  
	
  September 30,
  2004

  	
   

  	
  1.00

  	
   

  
	
  December 31,
  2004

  	
   

  	
  1.05

  	
   

  
	
  March 31,
  2005

  	
   

  	
  1.10

  	
   

  
	
  June 30,
  2005

  	
   

  	
  1.15

  	
   

  
	
  September 30,
  2005 and each Fiscal Quarter ending thereafter

  	
   

  	
  1.20

  	
   

  
					

 

(f)                                    Amendment
to Annex E to the Credit Agreement. 
Annex E to the Credit Agreement shall be amended by deleting the first
two lines thereof and replacing them with the following:

 

“Borrower shall deliver
or cause to be delivered to Agent (with sufficient copies for each Lender other
than Black Diamond International Funding Ltd. (“Black Diamond”)) and
Black Diamond, and Agent shall forward to each Lender other than Black Diamond,
as indicated, the following:”

 

4

 

Annex E to the Credit
Agreement shall be further amended by inserting the words “and Black Diamond”
immediately after the words “To Agent” as they first appear in each of clauses
(a), (b), (c), (d), (e), (f), (g), (h) and (j) thereof.

 

(g)                                 Amendment
to Annex F to the Credit Agreement. 
Annex F to the Credit Agreement shall be amended and restated in its
entirety by inserting the Annex F attached hereto in lieu thereof.

 

(h)                                 Amendment
to Annex G to the Credit Agreement. 
Annex G to the Credit Agreement shall be amended by deleting subsections
(b), (c) and (d) in their entirety and replacing them with the following:

 

“(b)                           Minimum
Fixed Charge Coverage Ratio. 
Borrower and its Subsidiaries shall have on a consolidated basis at the
end of each Fiscal Quarter set forth below, a Fixed Charge Coverage Ratio for
the 12-month period then ended of not less than the following:

 

	
  Fiscal Quarter ending

  	
   

  	
  Minimum
  Fixed Charge Coverage Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  September 30,
  2003

  	
   

  	
  0.65

  	
   

  
	
  December 31,
  2003

  	
   

  	
  0.55

  	
   

  
	
  March 31,
  2004

  	
   

  	
  0.60

  	
   

  
	
  June 30,
  2004

  	
   

  	
  0.70

  	
   

  
	
  September 30,
  2004

  	
   

  	
  0.85

  	
   

  
	
  December 31,
  2004

  	
   

  	
  1.00

  	
   

  
	
  March 31,
  2005

  	
   

  	
  1.05

  	
   

  
	
  June 30,
  2005

  	
   

  	
  1.10

  	
   

  
	
  September 30,
  2005 and each Fiscal Quarter ending thereafter

  	
   

  	
  1.20

  	
   

  

 

(c)                                  Minimum
EBITDA.   Borrower and its
Subsidiaries on a consolidated basis shall have, at the end of each Fiscal
Quarter set forth below, EBITDA for the 12-month period then ended of not less
than the following:

 

	
  Fiscal Quarter ending

  	
   

  	
  Minimum
  EBITDA

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  September 30,
  2003

  	
   

  	
  $

  	
  37,125,000

  	
   

  
	
  December 31,
  2003

  	
   

  	
  35,628,000

  	
   

  
	
  March 31,
  2004

  	
   

  	
  35,445,000

  	
   

  
	
  June 30,
  2004

  	
   

  	
  35,379,000

  	
   

  
	
  September 30,
  2004

  	
   

  	
  43,072,000

  	
   

  
	
  December 31,
  2004

  	
   

  	
  48,293,000

  	
   

  
	
  March 31,
  2005

  	
   

  	
  52,445,000

  	
   

  
	
  June 30,
  2005

  	
   

  	
  58,139,000

  	
   

  
	
  September 30,
  2005 and each Fiscal Quarter ending thereafter

  	
   

  	
  62,000,000

  	
   

  
					

 

(d)                                 Minimum
Borrowing Availability.  Borrower
shall at all times have Borrowing Availability of at least $5,000,000; provided,
however, that so long as Borrower’s unaudited 

 

5

 

quarterly Financial
Statements for the Fiscal Quarter ending June 30, 2005 evidences the
absence of any Increase Interest Rate Event, Borrower shall not be required to
have a Minimum Borrowing Availability after delivery of such Financial
Statements.

 

Unless otherwise
specifically provided herein, any accounting term used in the Agreement shall
have the meaning customarily given such term in accordance with GAAP, and all
financial computations hereunder shall be computed in accordance with GAAP
consistently applied.  That certain
items or computations are explicitly modified by the phrase “in accordance with
GAAP” shall in no way be construed to limit the foregoing.  If any “Accounting Changes” (as defined
below) occur and such changes result in a change in the calculation of the
financial covenants, standards or terms used in the Agreement or any other Loan
Document, then Borrower, Agent and Lenders agree to enter into negotiations in
order to amend such provisions of the Agreement so as to equitably reflect such
Accounting Changes with the desired result that the criteria for evaluating
Borrower’s and its Subsidiaries’ financial condition shall be the same after
such Accounting Changes as if such Accounting Changes had not been made; provided,
however, that the agreement of Requisite Lenders to any required
amendments of such provisions shall be sufficient to bind all Lenders.  “Accounting Changes” means (i)
changes in accounting principles required by the promulgation of any rule,
regulation, pronouncement or opinion by the Financial Accounting Standards
Board of the American Institute of Certified Public Accountants (or successor
thereto or any agency with similar functions), (ii) changes in accounting
principles concurred in by Borrower’s certified public accountants; (iii)
purchase accounting adjustments under A.P.B. 16 or 17 and EITF 88-16, and the
application of the accounting principles set forth in FASB 109, including the
establishment of reserves pursuant thereto and any subsequent reversal (in
whole or in part) of such reserves; and (iv) the reversal of any reserves
established as a result of purchase accounting adjustments.  All such adjustments resulting from
expenditures made subsequent to the Closing Date (including capitalization of
costs and expenses or payment of pre-Closing Date liabilities) shall be treated
as expenses in the period the expenditures are made and deducted as part of the
calculation of EBITDA in such period. 
If Agent, Borrower and Requisite Lenders agree upon the required amendments,
then after appropriate amendments have been executed and the underlying
Accounting Change with respect thereto has been implemented, any reference to
GAAP contained in the Agreement or in any other Loan Document shall, only to
the extent of such Accounting Change, refer to GAAP, consistently applied after
giving effect to the implementation of such Accounting Change.  If Agent, Borrower and Requisite Lenders
cannot agree upon the required amendments within 30 days following the date of
implementation of any Accounting Change, then all Financial Statements
delivered and all calculations of financial covenants and other standards and
terms in accordance with the Agreement and the other Loan Documents shall be
prepared, delivered and made without regard to the underlying Accounting Change.
 For purposes of Section 8.1,
a breach of a Financial Covenant contained in this Annex G shall be
deemed to have occurred as of any date of determination by Agent or as of the
last day of any specified measurement period, regardless of when the Financial
Statements reflecting such breach are delivered to Agent.”

 

(i)                                     Amendment
to Annex J.  Annex J to the Credit
Agreement shall be amended and restated in its entirety by inserting the Annex
J attached hereto in lieu thereof.

 

6

 

3.                                       Ratification
of Credit Agreement; Remedies.

 

(a)                                  Except
as expressly provided for, and on the terms and conditions set forth, herein,
the Credit Agreement and the other Loan Documents shall continue to be in full
force and effect in accordance with their respective terms and shall be
unmodified.  In addition, this Amendment
shall not be deemed a waiver of any term or condition of any Loan Document by
the Agent or the Lenders with respect to any right or remedy which the Agent or
the Lenders may now or in the future have under the Loan Documents, at law or
in equity or otherwise or be deemed to prejudice any rights or remedies which
the Agent or the Lenders may now have or may have in the future under or in
connection with any Loan Document or under or in connection with any Default or
Event of Default which may now exist or which may occur after the date
hereof.  The Credit Agreement and all
other Loan Documents are hereby in all respects ratified and confirmed.

 

(b)                                 This
Amendment shall constitute a Loan Document. 
The breach by any Credit Party of any representation, warranty, covenant
or agreement in this Amendment shall constitute an immediate Event of Default
hereunder and under the other Loan Documents.

 

4.                                       Representations
and Warranties.  The Borrower and
the Credit Parties hereby represent and warrant to the Agent and Lenders that:

 

(a)                                  The
execution, delivery and performance of this Amendment and the performance of
the Credit Agreement as amended by this Amendment (the “Amended Credit
Agreement”) by the Borrower and the other Credit Parties:  (i) are within their respective
organizational powers; (ii) have been duly authorized by all necessary
corporate and shareholder action; (iii) are not in contravention of any
provision of their respective certificates or articles of incorporation or
by-laws or other organizational documents; (iv) do not violate any law or
regulation, or any order or decree of any court or Governmental Authority; (v)
do not conflict with or result in the breach or termination of, constitute a
default under or accelerate or permit the acceleration of any performance
required by, any indenture, mortgage, deed of trust, lease, agreement or other
instrument to which the Borrower or any Credit Party is a party or by which the
Borrower or any Credit Party or any of its property is bound; (vi) do not
result in the creation or imposition of any Lien upon any of the property of
the Borrower or any Credit Party other than those in favor of Agent pursuant to
the Loan Documents; and (vii) do not require the consent or approval of any
Governmental Authority or any other Person.

 

(b)                                 This
Amendment has been duly executed and delivered by or on behalf of the Borrower
and the other Credit Parties.

 

(c)                                  Each
of this Amendment and the Amended Credit Agreement constitutes a legal, valid
and binding obligation of the Borrower and the other Credit Parties enforceable
against each of them in accordance with its terms, except as enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditor’s rights generally and general equitable
principles (whether enforcement is sought by proceedings in equity or at law).

 

(d)                                 No
Default or Event of Default has occurred and is continuing both before and
after giving effect to this Amendment.

 

7

 

(e)                                  No
action, claim or proceeding is now pending or, to the knowledge of the Borrower
and the other Credit Parties, threatened against the Borrower or the other
Credit Parties, at law, in equity or otherwise, before any court, board,
commission, agency or instrumentality of any federal, state, or local
government or of any agency or subdivision thereof, or before any arbitrator or
panel of arbitrators, (i) which challenges the Borrower’s or the other Credit
Parties’ right, power, or competence to enter into this Amendment or, to the
extent applicable, perform any of its obligations under this Amendment, the
Amended Credit Agreement or any other Loan Document, or the validity or
enforceability of this Amendment, the Amended Credit Agreement or any other
Loan Document or any action taken under this Amendment, the Amended Credit
Agreement or any other Loan Document or (ii) which, if determined adversely, is
reasonably likely to have or result in a Material Adverse Effect.  To the knowledge of the Borrower and each
Credit Party, there does not exist a state of facts which is reasonably likely
to give rise to such proceedings.

 

(f)                                    The
representations and warranties of the Borrower and the other Credit Parties
contained in the Amended Credit Agreement and each other Loan Document shall be
true and correct on and as of the date hereof and the Amendment Effective Date
with the same effect as if such representations and warranties had been made on
and as of such date, except that any such representation or warranty which is
expressly made only as of a specified dated need be true only as of such date.

 

5.                                       Outstanding
Indebtedness.  The Borrower and the other Credit Parties
hereby acknowledge and agree that as of March 18, 2004, (i) the aggregate
outstanding amount of the Revolving Credit Advances is $38,588,896.53, (ii) the
aggregate outstanding amount of Letter of Credit Obligations is $125,000.00,
and (iii) the aggregate outstanding principal amount of the Term Loan is
$48,437,500.00, and that such principal amounts are payable pursuant to the
Credit Agreement without defense, offset, withholding, counterclaim or
deduction of any kind.

 

6.                                       Fees
and Expenses

 

(a)                                  Amendment
Fees.

 

(i)                                     Revolving
Lenders Amendment Fee.  To induce
Agent and the Revolving Lenders to enter into this Amendment, Borrower hereby
agrees to pay Agent, for the ratable benefit of the Revolving Lenders, an
amendment fee in the amount of $100,000.00 in immediately available funds,
payable on the Effective Date (the “Revolving Lenders Amendment Fee”).

 

(ii)                                  Term
Lenders Amendment Fee.  To induce
Agent and the Term Lenders to enter into this Amendment, Borrower hereby agrees
to pay Agent, for the ratable benefit of the Term Lenders, an amendment fee in
the amount of $200,000.00 in immediately available funds, payable on the
Effective Date (the “Term Lenders Amendment Fee”).

 

(iii)                               Revolving
Lenders Closing Fee.  To further
induce Agent and the Revolving Lenders to enter into this Amendment, Borrower
hereby agrees to pay Agent, for the ratable benefit of the Revolving Lenders, a
closing fee (the “Revolving Lenders Closing Fee”, together with the
Revolving Lenders Amendment Fee and the Term Lenders Amendment Fee, 

 

8

 

collectively the “Amendment Fees”) in the amount of $100,000.00
in immediately available funds, payable on the Effective Date.

 

(b)                                 Expenses.  The Borrower hereby reconfirms its
obligations pursuant to Section 11.3(b) of the Credit Agreement to
reimburse Agent for all out-of-pocket fees, costs and expenses, including the
reasonable fees, costs and expenses of counsel, consultants, auditors or other
advisors, incurred in connection incurred with the negotiation, preparation,
execution and delivery of this Amendment and all other documents and
instruments delivered in connection herewith.

 

7.                                       GOVERNING
LAW.  THIS AMENDMENT, IN ALL
RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE,
SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND
PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF
AMERICA.

 

8.                                       Effectiveness.  This Amendment shall become effective as of
March 23, 2004 (the “Amendment Effective Date”) only upon
satisfaction in full in the judgment of the Agent of each of the following
conditions on or before March 23, 2004:

 

(a)                                  Amendment.  Agent shall have received facsimile copies
of this Amendment duly executed and delivered by the Agent, the Requisite
Lenders, the Borrower and each Credit Party.

 

(b)                                 Representations
and Warranties.  All representations
and warranties of or on behalf of the Borrower and each Credit Party in this
Amendment and all the other Loan Documents shall be true and correct in all
respects with the same effect as though such representations and warranties had
been made on and as of the date hereof and on and as of the date that the other
conditions precedent in this Section 8 have been satisfied, except to the
extent that any such representation or warranty expressly relates to an earlier
date.

 

(c)                                  Payment
of Expenses.  Borrower shall have
paid to Agent all costs, fees and expenses owing in connection with this
Amendment, including, without limitation, the Amendment Fees and the other Loan
Documents and due to Agent (including, without limitation, reasonable legal
fees and expenses).

 

9.                                       Counterparts.  This Amendment may be executed in any number
of counterparts, each of which shall be an original with the same effect as if
the signatures thereto and hereto were upon the same instrument.

 

[SIGNATURE PAGES
FOLLOW]

 

9

 

IN WITNESS WHEREOF, each of the parties
hereto has executed this Amendment as of date and year first written above.

 

	
   

  	
  BORROWER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  APPLIED EXTRUSION TECHNOLOGIES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian P. Crescenzo

  	
   

  
	
   

  	
  Name:

  	
  Brian P. Crescenzo

  
	
   

  	
  Title:

  	
  Vice President and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GENERAL
  ELECTRIC CAPITAL CORPORATION,

  
	
   

  	
  as Agent and Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James H. Kaufman

  	
   

  
	
   

  	
  Duly Authorized
  Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher Cox

  	
   

  
	
   

  	
  Duly Authorized
  Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LENDERS

  
	
   

  	
   

  
	
   

  	
  BLACK DIAMOND INTERNATIONAL
  FUNDING, LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alan Corkish

  	
   

  
	
   

  	
  Name:

  	
  Alan Corkish

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
  TRS 1, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Deborah O’Keeffe

  	
   

  
	
   

  	
  Name:

  	
  Deborah O’Keeffe

  
	
   

  	
  Title:

  	
  Vice President 

  
					

 

 

	
   

  	
  The following Persons are signatories to this
  Agreement in their capacity as Credit Parties and not as Borrower.

  
	
   

  	
  APPLIED
  EXTRUSION TECHNOLOGIES (CANADA) INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian P. Crescenzo

  	
   

  
	
   

  	
  Name:

  	
  Brian P. Crescenzo

  
	
   

  	
  Title:

  	
  Vice President and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  APPLIED
  EXTRUSION TECHNOLOGIES LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian P. Crescenzo

  	
   

  
	
   

  	
  Name:

  	
  Brian P. Crescenzo

  
	
   

  	
  Title:

  	
  Vice President and Treasurer  

  
					

 

 

ANNEX F
(SECTION 4.1(B))

TO

CREDIT AGREEMENT

 

COLLATERAL
REPORTS

 

Borrower shall deliver or
cause to be delivered the following:

 

(a)                                  To
Agent and Black Diamond, upon their request, and in any event no less
frequently than 10 Business Days after the end of each Fiscal Month and with
respect to clause (i) within five (5) Business Days from the Friday ending the
second full week of the each Fiscal Month (together with a copy of all or any
part of the following reports requested by any Lender in writing after the
Closing Date), each of the following reports, each of which shall be prepared
by Borrower as of the last day of the immediately preceding Fiscal Month or the
date 2 days prior to the date of any such request:

 

(i)                                     a
Borrowing Base Certificate with respect to Borrower and AET Canada, in each
case accompanied by such supporting detail and documentation as shall be
requested by Agent in its reasonable discretion;

 

(ii)                                  with
respect to Borrower and AET Canada, a summary of Inventory by location and type
with a supporting perpetual Inventory report, in each case accompanied by such
supporting detail and documentation as shall be requested by Agent in its
reasonable discretion; and

 

(iii)                               with
respect to Borrower and AET Canada, a monthly trial balance showing Accounts
outstanding aged by due date as follows: 
1 to 30 days past due, 31 to 60 days past due, 61 to 90 days and 91 days
or more past due, accompanied by such supporting detail and documentation as
shall be requested by Agent in its reasonable discretion.

 

(b)                                 To
Agent and Black Diamond, at the time of delivery of each of the monthly
Financial Statements delivered pursuant to Annex E:

 

(i)                                     a
reconciliation of the Accounts trial balance of Borrower to Borrower’s most
recent Borrowing Base Certificate, general ledger and monthly Financial
Statements delivered pursuant to Annex E, in each case accompanied by
such supporting detail and documentation as shall be requested by Agent in its
reasonable discretion;

 

(ii)                                  a
reconciliation of the perpetual inventory by location of Borrower to Borrower’s
most recent Borrowing Base Certificate, general ledger and monthly Financial
Statements delivered pursuant to Annex E, in each case accompanied
by such supporting detail and documentation as shall be requested by Agent in
its reasonable discretion; and

 

(iii)                               a
reconciliation of the outstanding Loans as set forth in the monthly Loan
Account statement provided by Agent to Borrower’s general ledger and monthly
Financial Statements delivered pursuant to Annex E, in each case
accompanied by such 

 

 

supporting
detail and documentation as shall be requested by Agent in its reasonable
discretion;

 

(d)                                 To
Agent and Black Diamond, at the time of delivery of each of the quarterly
Financial Statements delivered pursuant to Annex E, an aging of accounts
payable, in each case accompanied by such supporting detail and documentation
as shall be requested by Agent in its reasonable discretion;

 

(e)                                  To
Agent and Black Diamond, at the time of delivery of each of the annual
Financial Statements delivered pursuant to Annex E, (i) a listing of
government contracts of Borrower subject to the Federal Assignment of Claims
Act of 1940; and (ii) a list of any applications for the registration of any
Patent, Trademark or Copyright filed by any Credit Party with the United States
Patent and Trademark Office, the United States Copyright Office or any similar
office or agency in the prior Fiscal Quarter;

 

(f)                                    Borrower,
at its own expense, shall deliver to Agent the results of each physical
verification, if any, that Borrower or any of its Subsidiaries may in their
discretion have made, or caused any other Person to have made on their behalf,
of all or any portion of their Inventory (and, if a Default or an Event of
Default has occurred and is continuing, Borrower shall, upon the request of
Agent, conduct, and deliver the results of, such physical verifications as
Agent may require);

 

(g)                                 Borrower,
at its own expense, shall deliver to Agent such appraisals of its assets as
Agent may request such appraisals to be conducted by an appraiser, and in form
and substance reasonably satisfactory to Agent; provided that Borrower shall
not be liable for the cost of more than one appraisal per year unless there
exists a Default or an Event of Default; and

 

(h)                                 Such
other reports, statements and reconciliations with respect to the Borrowing
Base, Collateral or Obligations of any or all Credit Parties as Agent shall
from time to time request in its reasonable discretion.

 

 

ANNEX J
(FROM ANNEX A - COMMITMENTS DEFINITION)

TO

CREDIT AGREEMENT

 

	
  As of Closing Date

  	
   

  	
  Lender(s)

  
	
   

  	
   

  	
   

  
	
  Revolving Loan
  Commitment

  	
   

  	
   

  
	
  (including a Swing Line
  Commitment

  	
   

  	
   

  
	
  of $5,000,000 and a
  Export-Related

  	
   

  	
   

  
	
  Loan Commitment of
  $5,000,000)

  	
   

  	
   

  
	
  $50,000,000.00

  	
   

  	
  General Electric
  Capital Corporation

  
	
   

  	
   

  	
   

  
	
  Term Loan Commitment:

  	
   

  	
   

  
	
  $50,000,000.00

  	
   

  	
  General Electric
  Capital Corporation

  
	
   

  	
   

  	
   

  
	
  As of March 23, 2004

  	
   

  	
  Lender(s)

  
	
   

  	
   

  	
   

  
	
  Revolving Loan
  Commitment

  	
   

  	
   

  
	
  (including a Swing Line
  Commitment

  	
   

  	
   

  
	
  of $5,000,000 and a
  Export-Related

  	
   

  	
   

  
	
  Loan Commitment of
  $5,000,000)

  	
   

  	
   

  
	
  $60,000,000.00

  	
   

  	
  General Electric
  Capital Corporation

  
	
   

  	
   

  	
   

  
	
  Term Loan Commitment

  	
   

  	
   

  
	
  (without giving effect
  to any payments):

  	
   

  	
   

  
	
  $25,000,000.00

  	
   

  	
  General Electric
  Capital Corporation

  
	
   

  	
   

  	
   

  
	
  $10,000,000.00

  	
   

  	
  Black Diamond
  International Funding, Ltd.

  
	
   

  	
   

  	
   

  
	
  $7,500,000.00

  	
   

  	
  Merrill Lynch Capital,
  a division of Merrill

  
	
   

  	
   

  	
  Lynch Business
  Financial Services Inc.

  
	
   

  	
   

  	
   

  
	
  $7,500,000.00

  	
   

  	
  TRS 1, LLCExhibit
10.2

 

FIRST
AMENDMENT TO

CREDIT AGREEMENT

 

FIRST AMENDMENT TO CREDIT
AGREEMENT, dated as of November 7, 2003 (this “Amendment”), to the
Credit Agreement referred to below by and among APPLIED EXTRUSION TECHNOLOGIES,
INC., a Delaware corporation (the “Borrower”); the other Credit Parties
signatory hereto; GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation
(in its individual capacity, “GE Capital”), for itself, as Lender, and
as Agent for Lenders; and the other Lenders signatory hereto.

 

W
I  T  N  E  S  S  E  T  H

 

WHEREAS, the Borrower,
the other Credit Parties, the Agent, and the Lenders are parties to that
certain Credit Agreement, dated as of October 3, 2003 (as amended,
supplemented or otherwise modified from time to time, prior to the date hereof,
the “Credit Agreement”); and

 

WHEREAS, the Borrower,
the Agent and the Lenders have agreed to amend certain provisions of the Credit
Agreement in the manner, and on the terms and conditions, provided for herein.

 

NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.                                       Certain
Definitions.  Capitalized terms used
herein and not otherwise defined shall have the meanings ascribed to them in
the Credit Agreement.

 

2.                                       Amendments
to Credit Agreement.  As of the
Amendment Effective Date, the Credit Agreement shall be amended as follows:

 

(a)                                  Amendment
to Section 1.3(e) of the Credit Agreement.  Section 1.3(e) of the Credit Agreement shall be amended and
restated in its entirety as follows:

 

“(e)                            To the
extent consistent with Sections 1.3(c) and (d), amounts to be applied
pursuant to Sections 1.3(b) and (d) to the prepayment of Loans shall be
applied, as applicable, first to prepay outstanding Index Rate Loans, and then
any amounts remaining after each such application shall, at the option of
Borrower, be applied to prepay LIBOR Loans, and/or shall be deposited in the
Prepayment Account (as defined below). 
The Agent shall apply any cash deposited in the Prepayment Account (i)
allocable to Term Loans to prepay Term Loans which are LIBOR Loans and (ii)
allocable to Revolving Loans to prepay Revolving Loans which are LIBOR Loans in
each case on the last day of their respective LIBOR Periods (or, at the
direction of Borrower, on any earlier date) until all outstanding Term Loans or
Revolving Loans, as the case may be, have been prepaid or until all the
allocable cash on deposit with respect to such Loans has been fully
applied.  For purposes of this
Agreement, the term

 

1

 

“Prepayment Account”
shall mean a cash collateral account maintained at a bank or financial
institution acceptable to Agent.  The
Prepayment Account shall be in the name of Borrower and shall be pledged to,
and subject to the control of, Agent, for the benefit of Agent and Lenders, in
manner satisfactory to Agent.  Borrower
hereby pledges and grants to Agent, on behalf of itself and Lenders, a security
interest in all funds held in the Prepayment Account from time to time and all
proceeds thereof, as security for the payment of all Obligations, whether or
not then due.  The Agreement, including
this Section 1.3(e), shall constitute a security agreement under
applicable law.  After the occurrence of
and during the continuance of an Event of Default, Agent will apply funds then
held in the Prepayment Account to the payment of Term Loans and Revolving Loans
(allocated to such Loans as provided above in this Section 1.3(e)),
and any remaining funds shall, subject to Section 1.11(b), be
applied, in such order as Agent may elect, to any other Obligations then due
and payable.  Neither Borrower nor any
Person claiming on behalf of or through Borrower shall have any right to
withdraw any of the funds held in the Prepayment Account, except as provided
above in this Section 1.3(e). 
Interest earned on deposits in the Prepayment Account shall be for the
account of Lenders ratably based upon their Pro Rata Shares of all of the
Loans.”

 

(b)                                 Amendment
to Section 1.11(b) of the Credit Agreement.  Section 1.11(b) of the Credit Agreement shall be amended to
add a new sentence at the end thereof to read as follows:

 

“Agent shall use
commercially reasonable efforts to apply, promptly upon receipt, as provided
herein, all payments and proceeds of Collateral which are required to be paid
to a Lender or applied to a Loan under this Agreement.”

 

(c)                                  Amendment
to Section 1.14 of the Credit Agreement.  Section 1.14 of the Credit Agreement shall be amended and
restated in its entirety as follows:

 

“1.14                     Access.  Each Credit Party that is a party hereto
shall, during normal business hours, from time to time upon one Business Day’s
prior notice as frequently as Agent or any Lender reasonably determines to be
appropriate: (a) provide Agent or such Lender (at such Lender’s own cost and
expense), as applicable, and any of its officers, employees and agents access
to its properties, facilities, advisors and employees (including officers) of
each Credit Party and to the Collateral, (b) permit Agent or such Lender (at
such Lender’s own cost and expense), as applicable, and any of its officers,
employees and agents, to inspect, audit and make extracts from any Credit
Party’s books and records, and (c) permit Agent, and its officers, employees and
agents, to inspect, review, evaluate and make test verifications and counts of
the Accounts, Inventory and other Collateral of any Credit Party.  If a Default or Event of Default has
occurred and is continuing or if access is necessary to preserve or protect the
Collateral as determined by Agent, each such Credit Party shall provide such
access to Agent and to each Lender at all times and without advance
notice.  Furthermore, so long as any
Event of Default has occurred and is continuing, Borrower shall provide Agent
and each Lender with access to their suppliers and customers.  Each Credit Party shall make available to
Agent and its counsel, as quickly as is possible under the circumstances,
originals or copies of all books and records that Agent may reasonably
request.  Each Credit Party shall
deliver any document or instrument necessary for Agent, as it may from time to
time reasonably request, to obtain records from any service bureau or other
Person that maintains records for such Credit Party, and shall maintain

 

2

 

duplicate records or
supporting documentation on media, including computer tapes and discs owned by
such Credit Party.  Agent will give
Lenders at least 5 days’ prior written notice of regularly scheduled
audits.  Representatives of other
Lenders may (at their own cost and expense) accompany Agent’s representatives
on regularly scheduled audits at no charge to Borrower.  Each Lender shall give Agent at least 5
days’ prior written notice of its intention to exercise access rights under
this Section 1.14 and Agent’s representatives may accompany
Lender’s representatives in exercising such access rights.”

 

(d)                                 Amendment
to Section 9.9(e) of the Credit Agreement.  Section 9.9(e) of the Credit Agreement shall be amended and
restated in its entirety as follows:

 

“(e)                            Dissemination
of Information.  Agent shall use
reasonable efforts to provide Lenders with any notice of Default or Event of
Default received by Agent from, or delivered by Agent to, any Credit Party,
with notice of any Event of Default of which Agent has actually become aware
and with notice of any action taken by Agent following any Event of Default; provided,
that Agent shall not be liable to any Lender for any failure to do so, except to
the extent that such failure is attributable to Agent’s gross negligence or
willful misconduct.  Lenders acknowledge
that Borrower is required to provide Collateral Reports to Agent in accordance
with Annex F hereto and agree that Agent shall have no duty to provide
the same to Lenders; provided, that Agent shall, upon request of any
Lender, provide to such Lender copies of the Borrowing Base Certificates
delivered to Agent (and upon Agent’s request Borrower shall provide to Agent
sufficient copies thereof for each such requesting Lender).”

 

3.                                       Ratification
of Credit Agreement; Remedies.

 

(a)                                  Except
as expressly provided for, and on the terms and conditions set forth, herein,
the Credit Agreement and the other Loan Documents shall continue to be in full
force and effect in accordance with their respective terms and shall be
unmodified.  In addition, this Amendment
shall not be deemed a waiver of any term or condition of any Loan Document by
the Agent or the Lenders with respect to any right or remedy which the Agent or
the Lenders may now or in the future have under the Loan Documents, at law or
in equity or otherwise or be deemed to prejudice any rights or remedies which
the Agent or the Lenders may now have or may have in the future under or in
connection with any Loan Document or under or in connection with any Default or
Event of Default which may now exist or which may occur after the date
hereof.  The Credit Agreement and all
other Loan Documents are hereby in all respects ratified and confirmed.

 

(b)                                 This
Amendment shall constitute a Loan Document. 
The breach by any Credit Party of any representation, warranty, covenant
or agreement in this Amendment shall constitute an immediate Event of Default
hereunder and under the other Loan Documents.

 

4.                                       Representations
and Warranties.  The Borrower and
the Credit Parties hereby represent and warrant to the Agent and Lenders that:

 

(a)                                  The
execution, delivery and performance of this Amendment and the performance of
the Credit Agreement as amended by this Amendment (the “Amended Credit
Agreement”) by the Borrower and the other Credit Parties:  (i) are within their respective

 

3

 

organizational powers; (ii) have been duly authorized by all necessary
corporate and shareholder action; (iii) are not in contravention of any
provision of their respective certificates or articles of incorporation or
by-laws or other organizational documents; (iv) do not violate any law or
regulation, or any order or decree of any court or Governmental Authority; (v)
do not conflict with or result in the breach or termination of, constitute a
default under or accelerate or permit the acceleration of any performance
required by, any indenture, mortgage, deed of trust, lease, agreement or other
instrument to which the Borrower or any Credit Party is a party or by which the
Borrower or any Credit Party or any of its property is bound; (vi) do not
result in the creation or imposition of any Lien upon any of the property of
the Borrower or any Credit Party other than those in favor of Agent pursuant to
the Loan Documents; and (vii) do not require the consent or approval of any
Governmental Authority or any other Person.

 

(b)                                 This
Amendment has been duly executed and delivered by or on behalf of the Borrower
and the other Credit Parties.

 

(c)                                  Each
of this Amendment and the Amended Credit Agreement constitutes a legal, valid
and binding obligation of the Borrower and the other Credit Parties enforceable
against each of them in accordance with its terms, except as enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditor’s rights generally and general equitable
principles (whether enforcement is sought by proceedings in equity or at law).

 

(d)                                 No
Default or Event of Default has occurred and is continuing both before and
after giving effect to this Amendment.

 

(e)                                  No
action, claim or proceeding is now pending or, to the knowledge of the Borrower
and the other Credit Parties, threatened against the Borrower or the other
Credit Parties, at law, in equity or otherwise, before any court, board,
commission, agency or instrumentality of any federal, state, or local
government or of any agency or subdivision thereof, or before any arbitrator or
panel of arbitrators, (i) which challenges the Borrower’s or the other Credit
Parties’ right, power, or competence to enter into this Amendment or, to the
extent applicable, perform any of its obligations under this Amendment, the
Amended Credit Agreement or any other Loan Document, or the validity or
enforceability of this Amendment, the Amended Credit Agreement or any other
Loan Document or any action taken under this Amendment, the Amended Credit
Agreement or any other Loan Document or (ii) which, if determined adversely, is
reasonably likely to have or result in a Material Adverse Effect.  To the knowledge of the Borrower and each
Credit Party, there does not exist a state of facts which is reasonably likely
to give rise to such proceedings.

 

(f)                                    The
representations and warranties of the Borrower and the other Credit Parties
contained in the Amended Credit Agreement and each other Loan Document shall be
true and correct on and as of the date hereof and the Amendment Effective Date
with the same effect as if such representations and warranties had been made on
and as of such date, except that any such representation or warranty which is
expressly made only as of a specified dated need be true only as of such date.

 

4

 

5.                                       Outstanding
Indebtedness; Waiver of Claims. 
The Borrower and the other Credit Parties hereby acknowledge and agree
that as of November 5, 2003, (i) the aggregate outstanding amount of the
Revolving Credit Advances is $20,197,829.12, (ii) the aggregate outstanding
amount of Letter of Credit Obligations is $0, and (iii) the aggregate
outstanding principal amount of the Term Loan is $50,000,000, and that such
principal amounts are payable pursuant to the Credit Agreement without defense,
offset, withholding, counterclaim or deduction of any kind.

 

6.                                       Expenses.  The Borrower hereby reconfirms its
obligations pursuant to Section 11.3(b) of the Credit Agreement to
reimburse Agent for all out-of-pocket fees, costs and expenses, including the
reasonable fees, costs and expenses of counsel, consultants, auditors or other
advisors, incurred in connection incurred with the negotiation, preparation,
execution and delivery of this Amendment and all other documents and
instruments delivered in connection herewith.

 

7.                                       GOVERNING
LAW.  THIS AMENDMENT, IN ALL
RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE,
SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND
PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF
AMERICA.

 

8.                                       Effectiveness.  This Amendment shall become effective as of
November 7, 2003 (the “Amendment Effective Date”) only upon
satisfaction in full in the judgment of the Agent of each of the following
conditions on or before November 8, 2003:

 

(a)                                  Amendment.  Agent shall have received facsimile copies
of this Amendment duly executed and delivered by the Agent, the Requisite
Lenders, the Borrower and each Credit Party.

 

(b)                                 Representations
and Warranties.  All representations
and warranties of or on behalf of the Borrower and each Credit Party in this
Amendment and all the other Loan Documents shall be true and correct in all
respects with the same effect as though such representations and warranties had
been made on and as of the date hereof and on and as of the date that the other
conditions precedent in this Section 8 have been satisfied, except to the
extent that any such representation or warranty expressly relates to an earlier
date.

 

9.                                       Counterparts.  This Amendment may be executed in any number
of counterparts, each of which shall be an original with the same effect as if
the signatures thereto and hereto were upon the same instrument.

 

[SIGNATURE PAGES
FOLLOW]

 

5

 

IN WITNESS WHEREOF, each of the parties
hereto has executed this Amendment as of date and year first written above.

 

	
   

  	
  BORROWER

  
	
   

  	
   

  
	
   

  	
  APPLIED
  EXTRUSION TECHNOLOGIES,

  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian P.
  Crescenzo

  	
   

  
	
   

  	
  Name:

  	
  Brian P.
  Crescenzo

  
	
   

  	
  Title:

  	
  Vice President
  and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL

  CORPORATION,

  
	
   

  	
  as Agent and
  Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James H. Kaufman

  	
   

  
	
   

  	
  Duly Authorized
  Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher Cox

  	
   

  
	
   

  	
  Duly Authorized
  Signatory

  
							

 

 

The following Persons are
signatories to this Agreement in their capacity as Credit Parties and not as
Borrower.

 

	
   

  	
  APPLIED EXTRUSION TECHNOLOGIES

  (CANADA) INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian P.
  Crescenzo

  	
   

  
	
   

  	
   

  	
  Name:  Brian
  P. Crescenzo

  
	
   

  	
   

  	
  Title:    Vice
  President and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  APPLIED EXTRUSION TECHNOLOGIES

  LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian P. Crescenzo

  	
   

  
	
   

  	
   

  	
  Name:  Brian P. Crescenzo

  
	
   

  	
   

  	
  Title:    Vice President and
  Treasurer

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