Document:

exv4w15

 

	 	 	 
	CIBC World Markets

	 	CIBC WORLD MARKETS PLC

Cottons Centre

Cottons Lane

London, England SE1 2QL

Tel:    44 (0)20 7234 4127

Fax:    44 (0)20 7407 4127

The Directors

Trench Electric Holding B.V.

12th January 2001    

Dear Sirs

FACILITIES AGREEMENT DATED 18 APRIL 2000 AS AMENDED AND RESTATED ON 20 JUNE
2000 AND MADE BETWEEN TRENCH ELECTRIC HOLDING B.V. (AS PARENT) (1), THE
COMPANIES LISTED IN SCHEDULE II THERETO (AS ORIGINAL BORROWERS) (2), THE
COMPANIES LISTED IN SCHEDULE III THERETO (AS GUARANTORS AND CHARGING COMPANIES)
(3), CIBC WORLD MARKETS PLC, BARCLAYS BANK PLC, CREDIT LYONNAIS AND NM
ROTHSCHILD & SONS LIMITED (AS BANKS) (4), CIBC WORLD MARKETS PLC (AS ARRANGER)
(5), CIBC WORLD MARKETS PLC (AS ISSUING BANK) (6), CIBC WORLD MARKETS PLC (AS
AGENT) (7), CANADIAN IMPERIAL BANK OF COMMERCE (AS CANADIAN LENDER) (8) AND
CIBC WORLD MARKETS PLC (AS SECURITY AGENT) (9) (AS FURTHER AMENDED FROM TIME TO
TIME THE “FACILITIES AGREEMENT”)

WE REFER TO THE ABOVE FACILITIES AGREEMENT. UNLESS A CONTRARY INTENTION
APPEARS, TERMS AND EXPRESSIONS DEFINED IN THE FACILITIES AGREEMENT SHALL HAVE
THE SAME MEANING WHEN USED IN THIS LETTER AND REFERENCES TO CLAUSES AND
SCHEDULES IN THIS LETTER ARE REFERENCES TO CLAUSES AND SCHEDULES OF THE
FACILITIES AGREEMENT.

WE ARE WRITING THIS LETTER TO YOU IN YOUR CAPACITY AS PARENT (INCLUDING AS
AGENT FOR ALL OF TE OBLIGORS) IN OUR CAPACITY AS AGENT.

	 	1.	 	RE-DENOMINATION OF PART OF TERM LOAN
	 
	 	1.1	 	The Banks and the Parent have agreed to re-denominate the currency
of one of the Term Advances, being the US$6,827,512.43 (the “Dollar
Amount”) advanced to Finatrench (France) S.A. referred to in clause
2.1(a). The re-denomination shall be from US Dollars into Euros (the
“Euro Amount”) and incorporate a mechanism providing for the payment of
a balancing payment (the “Balancing Amount”). The re-domination shall
occur (as illustrated overleaf in figure 1) such that:

	 	(a)	 	The re-denomination becomes effective as at the
time and date of the start of an Interest Period for the
existing Advance constituted by the Dollar Amount (the
“Re-denomination Date”).
	 
	 	(b)	 	The Euro Amount into which the Dollar Amount
will be re-denominated shall (subject to paragraph 1.2(b)
below) be Euro 7,177,191.04 being the equivalent of the DM
14,037,365.55 referred to in clause 2.1(a) exchanged in
accordance with clause 2.7(a) (ii) (such Euro amount as
adjusted pursuant to paragraph 1.2(b) below) being the
“Re-denominated Euro Tranche”).

 

 

	 	 	 	The Re-denominated Euro Tranche shall thereafter be deemed
a Term Advance and constitute part of the Term Loan.
	 
	 	(c)	 	The Balancing Amount shall be the difference
(in US Dollars) between the Dollar Amount less the US Dollar
notional equivalent amount of the Euro Amount calculated at
the Spot Rate as at a date in advance of the Re-denomination
Date (the “Re-denomination FX Fixing Date”). The
Re-denomination FX Fixing Date shall be up to 5 business days
in advance of the Re-denomination Date, and (although the
Agent will use its best efforts in order to fix a Spot Rate
favourable to the Parent) shall be selected at the Agent’s
discretion within the tolerance permitted by paragraph 1.2(d)
below.

Trench Term Loan Partial Currency Re-denomination

US$ Term ==> US$ equivalent term loan (based in €) + cash balancing payment (prepayment)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Dollar
Amount
	 	Spot Rate
	 	Euro Amount
	 	Balancing Amount

	 	 	 	 	US$
	 	DM:$
	 	DEM:€
	 	$:€
	 	€
	 	(US$ equivalent)
	 	(DM equivalent)
	 	US$

	Re-denominate	 	6.827,512.43
	 	 	2.08038	 	 	 	1.95583	 	 	 	0.94013	 	 	 	7,177,191.04	 	 	 	6,747,512.43	 	 	 	14,037,365.55	 	 	 	80,000.00	 
	 	 	 	 	6.827,512.43
	 	 	2.08000	 	 	 	1.95583	 	 	 	0.94030	 	 	 	7,177,191.04	 	 	 	6,748,733.44	 	 	 	14,037,365.55	 	 	 	78,778.99	 
	 	 	 	 	6.827,512.43
	 	 	2.07750	 	 	 	1.95583	 	 	 	0.94143	 	 	 	7,177,191.04	 	 	 	6,756,854.66	 	 	 	14,037,365.55	 	 	 	70,657.77	 
	 	 	 	 	6.827,512.43
	 	 	2.07500	 	 	 	1.95583	 	 	 	0.94257	 	 	 	7,177,191.04	 	 	 	6,764,995.45	 	 	 	14,037,365.55	 	 	 	62,516.98	 
	 	 	 	 	6.827,512.43
	 	 	2.07250	 	 	 	1.95583	 	 	 	0.94371	 	 	 	7,177,191.04	 	 	 	6,773,155.87	 	 	 	14,037,365.55	 	 	 	54,356.56	 
	 	 	 	 	6.827,512.43
	 	 	2.07117	 	 	 	1.95583	 	 	 	0.94431	 	 	 	7,177,191.04	 	 	 	6,777,512.43	 	 	 	14,037,365.55	 	 	 	50,000.00	 
	 	 	 	 	6.827,512.43
	 	 	2.07000	 	 	 	1.95583	 	 	 	0.94485	 	 	 	7,177,191.04	 	 	 	6,781,336.01	 	 	 	14,037,365.55	 	 	 	46,176.42	 
	 	 	 	 	6.827,512.43
	 	 	2.06750	 	 	 	1.95583	 	 	 	0.94599	 	 	 	7,177,191.04	 	 	 	6,789,535.94	 	 	 	14,037,365.55	 	 	 	37,976.49	 
	 	 	 	 	6.827,512.43
	 	 	2.06500	 	 	 	1.95583	 	 	 	0.94713	 	 	 	7,177,191.04	 	 	 	6,797,755.71	 	 	 	14,037,365.55	 	 	 	29,756.72	 
	 	 	 	 	6.827,512.43
	 	 	2.06250	 	 	 	1.95583	 	 	 	0.94828	 	 	 	7,177,191.04	 	 	 	6,805,995.42	 	 	 	14,037,365.55	 	 	 	21,517.01	 
	 	 	 	 	6.827,512.43
	 	 	2.06000	 	 	 	1.95583	 	 	 	0.94943	 	 	 	7,177,191.04	 	 	 	6,814,255.12	 	 	 	14,037,365.55	 	 	 	13,257.31	 
	 	 	6.827,512.43
	 	 	2.05750	 	 	 	1.95583	 	 	 	0.95059	 	 	 	7,177,191.04	 	 	 	6,822,534.90	 	 	 	14,037,365.55	 	 	 	4,977.53	 
	 	 	 	 	
 
	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	 	
 	 
	 	 	 	 	6.827,512.43
	 	 	2.05600	 	 	 	1.95583	 	 	 	0.95128	 	 	 	7,177,191.04	 	 	 	6,827,512.43	 	 	 	14,037,365.55	 	 	 	0.00	 
	 	 	 	 	
 
	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	 	
 	 
	 	 	 	 	6.827,512.43
	 	 	2.05500	 	 	 	1.95583	 	 	 	0.95174	 	 	 	7,173,700.19	 	 	 	6,827,512.43	 	 	 	14,030,538.04	 	 	 	0.00	 
	 	 	 	 	6.827,512.43
	 	 	2.05250	 	 	 	1.95583	 	 	 	0.95290	 	 	 	7,164,973.06	 	 	 	6,827,512.43	 	 	 	14,013,469.26	 	 	 	0.00	 
	 	 	 	 	6.827,512.43
	 	 	2.05000	 	 	 	1.95583	 	 	 	0.95406	 	 	 	7,156,245.93	 	 	 	6,827,512.43	 	 	 	13,998,400.48	 	 	 	0.00	 
	 	 	 	 	6.827,512.43
	 	 	2.04750	 	 	 	1.95583	 	 	 	0.95523	 	 	 	7,147,518.80	 	 	 	6,827,512.43	 	 	 	13,979,331.70	 	 	 	0.00	 

Figure 1: For illustrative purposes only

	 	1.2	 	This agreement is subject to the following conditions:

	 	(a)	 	To the extent that the Balancing Amount is
greater than US Dollars 0.0 then the Parent shall procure
that an amount equivalent to the Balancing Amount shall be
paid in US Dollars to the Agent for value date of the
Re-denomination Date for the account of the Banks (such
payment to be treated by the Agent and the Banks as a
part-prepayment of the next scheduled repayment instalment
required under clause 8.1)
	 
	 	(b)	 	The aggregate principal amount of the Term
Facilities does not exceed US$ 25,000,000 (or its Foreign
Currency Equivalent) in accordance with clause 2.1 (a). To
the extent that the Balancing Amount is less than US Dollars
0.0, the Euro Amount shall be adjusted to such a value that
the Balancing Amount would be equal to US Dollars 0.0.
	 
	 	(c)	 	The Re-denomination Date occurs within 3 months
of the date of this letter.
	 
	 	(d)	 	The Balancing Amount (if positive) shall be
less than or equal to US$ 80,000.00, unless waived by the
Parent acting on behalf of the Obligors.

 

 

	 	1.3	 	The Agent confirms that the Banks have provided their consent to
the above re-denomination by the Group.
	 
	 	1.4	 	It is currently anticipated that no costs will arise for the
account of the Parent in effecting the re-denomination. However, if any
unforeseen costs or expenses do arise as a result of the
re-denomination, such costs and/or expenses shall be for the account of
the Parent.
	 
	 	1.5	 	The Agent and the Parent acknowledge that certain consequential
amendments to the Facilities Agreement will be required as a result of
the re-denomination and these are set out below. To the extent any
further amendments or variations are necessitated by the
re-denomination, the Agent (subject to the approval of the Banks) and
the parent will enter into the appropriate documentation as soon as
practicable thereafter.
	 
	 	2.	 	AMENDMENTS AND WAIVERS
	 
	 	As of the Re-denomination Date the Facilities Agreement shall be amended such that:

	 	(a)	 	the words and figures
	 
	 	 	 	“Finatrench (France) S.A. US$6,827,512.43 (DM14,037,365.55)”
	 
	 	 	 	appearing in line six of clause 2.1(a) shall be deleted and
substituted wit the words and figures
	 
	 	 	 	“Finatrench (France) S.A. Euro [Euro Amount] (US$6,827,512.43)”;
	 
	 	 	 	such that the Euro Amount is established in accordance with this
letter on the Re-denomination FX Fixing Date
	 
	 	(b)	 	The following new definitions shall be inserted:
	 
	 	 	 	““US Dollar Denominated Term Advances” those Term Advances
denominated in US Dollars;” and
	 
	 	 	 	““Euro Denominated Term Advances” those Term Advances denominated in
Euros;”
	 
	 	(c)	 	In clause 22.2 the words “(or its Foreign Currency Equivalent)”
shall be inserted after each of the figures “US$2,500,000” and
“US$1,000,000”.
	 
	 	(d)	 	clause 8.1 shall be deleted and replaced with the following:

	 	“8.1 	 	Repayment of Term Advances
	 
	 	 	 	Except as otherwise provided in this Agreement, each of the
Borrowers shall on the last day of each period set out
below repay the Term Loan in full in the instalments and on
the dates set out below. The amounts of the Term Loan to be
repaid by the Borrowers on each date shall be the amounts
(in the relevant currencies) which are equal to the
percentage set out in the column below opposite the
relevant date applied against each of the US Dollar
Denominated Term Advances and the Euro Denominated Term
Advances then outstanding.

 

 

	 	 	 
	Number of Months following	 	Repayment Instalments
	The First Drawdown Date
	 	%

	12
	 	8
	18
	 	6
	24
	 	6
	30
	 	8
	36
	 	8
	42
	 	9
	48
	 	9
	54
	 	10
	60
	 	10
	66
	 	11
	72
	 	15

	 	(e)	 	The Commitments of the Banks shall be amended such that the
Commitments under the Term Facilities as at the Re-denomination Date
shall be as set out in the table below:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Term Commitment

	Bank
	 	Percentage
	 	Pre re-denomination
	 	Post re-denomination

	 	 	%	 	US$	 	US$	 	€
	CIBC World Markets Plc
	 	 	28.33	%	 	 	7,083,333.00	 	 	 	5,148,871.24	 	 	Percentage x Euro Amount
	Barclays Bank PLC
	 	 	27.50	%	 	 	6,875,000.00	 	 	 	4,997,434.08	 	 	Percentage x Euro Amount
	Credit Lyonnais
	 	 	27.50	%	 	 	6,875,000.00	 	 	 	4,997,434.08	 	 	Percentage x Euro Amount
	N.M. Rothschild & Sons Limited
	 	 	16.67	%	 	 	4,166,667.00	 	 	 	3,028,748.17	 	 	Percentage x Euro Amount
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	
 
	 
	 	 	100.00	%	 	 	25,000,000.00	 	 	 	18,172,487.57	 	 	Euro Amount*
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	
 
	 	 	 	 	 	 	 	 	 	 	<= US$25,000,000*
	 
	 	 	 	 	 	 	 	 	 	 	
 

     *Depending
upon Spot Rate

	 	(f)	 	For the avoidance of doubt the outstanding Term Advances as at the
Re-denomination Date shall be as set out in the table below:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Post re-denomination Term Advances

	 	 	 	 	 	 	Total
 
	 	Trench
Limited
	 	Finatrench (France) SA
 
	 	Trench UK
 

	Bank
	 	Percentage
	 	<=US$*
	 	US$
	 	€
	 	US$

	CIBC World Markets Plc
	 	 	28.33	%	 	 	7,083,333.00	 	 	 	1,784,358.89	 	 	Percentage x Euro Amount	 	 	3,364,512.34	 
	Barclays Bank PLC
	 	 	27.50	%	 	 	6,875,000.00	 	 	 	1,731,877.83	 	 	Percentage x Euro Amount	 	 	3,265,556.25	 
	Credit Lyonnais
	 	 	27.50	%	 	 	6,875,000.00	 	 	 	1,731,877.83	 	 	Percentage x Euro Amount	 	 	3,265,556.25	 
	N.M. Rothschild & Sons Limited
	 	 	16.67	%	 	 	4,166,667.00	 	 	 	1,049,623.01	 	 	Percentage x Euro Amount	 	 	1,979,125.16	 
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	
 	 	 	
 	 
	 
	 	 	100.00	%	 	 	25,000,000.00	 	 	 	6,297,737.57	 	 	Euro Amount*	 	 	11,874,750.00	 
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	
 	 	 	
 	 

     *Depending
upon $:€ Spot
Rate

	 	2.2	 	For the avoidance of doubt no waivers are given under this letter in
respect of any breach of, or other Event of Default or Potential Event of
Default which may have occurred (or may occur) under, the Facilities
Agreement or any other Senior Finance Document. The Security Documents
shall continue to secure all the Facilities including the Re-denominated
Euro Tranche.
	 
	 	2.3	 	This letter may be executed in any number of counter parts and this has
the same effect as if the signatures on the counterparts were on a single
copy of this letter.

 

 

	 	2.4	 	This letter shall be governed by and constructed in accordance with
English law and clause 38 (Governing Law and Jurisdiction) of the
Facilities Agreement shall apply mutatis mutandis as if set out in full in
this letter.

Yours faithfully

	 	 	 
	Signed:
	 	/s/ Richard Vaughan
	

	 	
 
	Name:

Position:

	 	Richard Vaughan

Director

For and on behalf of CIBC World Markets plc

in its capacity as Agent

for and on behalf of the Banks

 

To CIBC World Markets Plc

We confirm our acceptance of and agreement to the variations to the Facilities
Agreement and the other terms of your letter dated 12th January 2001.

	 	 	 	 	 	 	 
	Signed:
	 	/s/ M J Bissell

	 	Date:	 	12th January 2001
	 	 	
 

	 	 	 	
 

	 	 	 
	Name (please print):

Position (please print):

	 	MICHAEL JOHN BISSELL

GROUP FINANCE DIRECTOR

For and on behalf of:

Trench Electric Holding B.V.

(for itself and in its capacity as

Parent and agent for each of the Obligors)exv4w16

 

	 	 	 
	CIBC World Markets

	 	CIBC WORLD MARKETS PLC

Cottons Centre

Cottons Lane

London, England SE1 2QL

Tel:    44 (0)20 7234 4127

Fax:    44 (0)20 7407 4127

The Directors

Trench Electric Holding B.V.

12th July 2001   

Dear Sirs

FACILITIES AGREEMENT DATED 18 APRIL 2000 AS AMENDED AND RESTATED ON 20 JUNE 2000
AND MADE BETWEEN TRENCH ELECTRIC HOLDING B.B. (AS PARENT) (1), THE COMPANIES
LISTED IN SCHEDULE II THERETO (AS ORIGINAL BORROWERS) (2), THE COMPANIES LISTED
IN SCHEDULE III THERETO (AS GUARANTORS AND CHARGING COMPANIES) (3), CIBC WORLD
MARKETS PLC, BARCLAYS BANK PLC, CREDIT LYONNAIS AND NM ROTHSCHILD & SONS LIMITED
(AS BANKS) (4), CIBC WORLD MARKETS PLC (AS ARRANGER) (5), CIBC WORLD MARKETS
PLC (AS ISSUING BANK) (6) CIBC WORLD MARKETS PLC (AS AGENT) (7), CANADIAN
IMPERIAL BANK OF COMMERCE (AS CANADIAN LENDER) (8) AND CIBC WORLD MARKETS PLC
(AS SECURITY AGENT) (9) (THE “FACILITIES AGREEMENT”)

We refer to the above Facilities Agreement and to the Trench Group Bank
Presentation dated 22 November 2000 (the “Presentation”). Unless a contrary
intention appears, terms and expressions defined in the Facilities Agreement
shall have the same meanings when used in this letter and references to clauses
and schedules of the Facilities Agreement.

We are writing this letter to you in your capacity as Parent (including as
agent for all of the Obligors) in our capacity as Agent.

	1.	 	AMENDMENTS AND WAIVERS

	 	(a)	 	Clause 17.2 Testing of Covenants, paragraph (b) currently
reads:
	 

	 	 	 	The covenant contained is clause 17.1(d) (Adjusted
Consolidated Net Worth) shall apply on a continuing basis
and be tested by reference to any losses or profits
demonstrated firstly by the management accounts and
secondly, where applicable, by the relevant audited
accounts of the Group. The covenant contained in clause
17.1(d) will only be breached if the minimum covenant level
specified is not achieved when Adjusted Net Worth is
calculated using the exchange rate applicable on the
Completion Date (in each case complying with clause 16.4
(Consistent Application). The other covenants contained in
clauses 17.1(a), (b) and (c) will be calculated using the
exchange rate employed to prepare the relevant accounts
from which the covenants are tested.
	 

	 	 	 	The following condition shall be applied:-

 

 

	 	 	 	Provided that, in the case of clauses 17.1(a) and (c) the
covenant ratios will be calculated using the exchange
rate(s) employed to prepare the Financial Projections.
This proviso shall apply for the four consecutive periods
to be tested specified in those clauses up to and including
the period ending 31st December 2001 and thereafter subject
to the prior written consent from all the Banks.
	 

	 	(b)	 	Clause 15.9 (Capital Expenditure) and Schedule VIII (Capital
Expenditure Projections)
	 

	 	 	 	For the purpose of clause 15.9 (Capital Expenditure), the
table in Schedule VIII (Capital Expenditure Projections)
shall be deleted and replaced by the schedule below:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Shanghai

	 	 	Non-Shangai	 	— Base	 	— Expansion
	Period (US$ million)
	 	(1)
	 	(2)
	 	(3)

	01/01/2000 to 31/12/2000
	 	 	5.00	 	 	 	1.53	 	 	 	 	 
	01/01/2001 to 31/12/2001
	 	 	4.50	 	 	 	1.91	 	 	 	1.70	 
	01/01/2002 to 31/12/2002
	 	 	4.05	 	 	 	1.16	 	 	 	 	 
	01/01/2003 to 31/12/2003
	 	 	4.00	 	 	 	1.22	 	 	 	 	 
	01/01/2004 to 31/12/2004
	 	 	4.50	 	 	 	 	 	 	 	 	 
	01/01/2005 to 31/12/2005
	 	 	4.50	 	 	 	 	 	 	 	 	 
	01/01/2006 to 31/12/2006
	 	 	4.50	 	 	 	 	 	 	 	 	 
	01/01/2007 to 31/12/2007
	 	 	4.50	 	 	 	 	 	 	 	 	 

	 	 	 	Clause 15.9(a) (Capital Expenditure) shall be deleted and
replaced with the following:
	 
	 	 	 	(a)    Not acquire any capital assets of a value or aggregate
value (and for this purpose, aggregating with the value of
the asset purchased the amount of any liability assumed
with or Encumbrance secured on it), or otherwise incur any
capital expenditure in any Accounting Reference Period,
which, when aggregated with the value of all other capital
assets and other capital expenditure incurred by Group
Companies in that Accounting Referencing Period (but
excluding Capital Expenditure to the extent funded from the
re-investment of Net Disposal Proceeds or funds received or
recovered by any Group Company of the type referred to in
Clause 9.4 (a)(ii)) exceeds the relevant budgeted amount
specified in United States Dollars in Schedule VIII
(Capital Expenditure Projections) or such greater amount as
may be approved by the Agent (acting on the instructions of
the Majority Banks) and be specified in the budget for any
Accounting Reference Period delivered pursuant to clause
16.1 (Budget).
	 
	 	 	 	Provided that, in relation only to the Capital Expenditure
amounts referred to in columns (1) of the table appearing
in Schedule VIII (Capital Expenditure Projections) up to 25
percent of the amount of any such Capital Expenditure not
utilised may be carried forward for one period only and
added to the Capital Expenditure limit for the next such
period and any amount so carried forward shall be treated
as utilised first by the Group in that period.
	 
	 	 	 	Provided also that, in relation to the Capital Expenditure
limit attributable to Shanghai (Base) in the table
appearing in Schedule VIII (Capital Expenditure
Projections) only, 100% of any such Capital Expenditure not
utilised in column (2) of the period 01/01/2000-31/12/2000
in such table may be carried forward for one period only
and added to the Capital Expenditure limit for the next
such period in column (2) of such table. Any amount so
carried forward shall be treated as utilised first by the
Group in that period.

 

 

	 	 	 	For these purposes “Shanghai — Base” and
“Shanghai —
Expansion”) shall constitute that Capital Expenditure as
outlined in such terms in Presentation 2.
	 

	 	(c)	 	Clause 17.3 (Definitions)
	 
	 	 	 	For the purposes of clause 17.3 (Definitions), references to the
Parent shall be deemed deleted and replaced by reference to Trench
Electric B.V.
	 
	 	(d)	 	Clause 9.3 (Cash Sweep)
	 
	 	 	 	The following provision shall be applied:-
	 

	 	 	 	Provided that for the Accounting Reference Period ending
31st December 2000 the amount to be prepaid hereunder will
be a fixed amount of US$2,250,000 (the “Fixed Cash Sweep”)
	 

	 	(e)	 	Clause 9.5 (Application of Prepayments)
	 
	 	 	 	In clause 9.5(a) (Application of Prepayments) the following
provision shall be inserted between the words “pro rata” and “;”:
	 

	 	 	 	Provided that in the case of prepayments constituted by the
Fixed Cash sweep under clause 9.3 (Cash Sweep) such
prepayments shall be applied firstly against the next most
immediate instalment set out in clause 8.1 (Repayment of
Term Advances) subsequent to the Accounting Reference
Period ending 31 December 2000 and not applied pro rata
against the outstanding Term Advances. Following
prepayment in full of such instalment, any unutilised
amount of such prepayment shall secondly be applied in the
same manner against the next most immediate instalment and
so forth in respect of further such prepayments.

	 
	 	 	 	In clause 9.5 (Application of Prepayments) a new clause 9.5(f)
shall be inserted as follows:
	 

	 	 	 	“(f) in the case of prepayments arising form Net Disposal
Proceeds pursuant to clauses 9.4 (Disposal Proceeds,
Acquisition Agreement Claims and Escrow Monies) and 9.6
(Date for Prepayments) such prepayments shall be applied
firstly against the last outstanding instalment set out in
clause 8.1 (Repayment of Term Advances) and not applied pro
rata across the outstanding instalments. Following
prepayment in full of such instalment any unutilised amount
of any such prepayment shall secondly be applied in the
same manner against the then next to last outstanding
instalment and so forth in respect of further such
prepayments.”
	 

	 	(f)	 	Clause 17.1 (Financial Covenants)
	 
	 	 	 	The following new sub-clauses shall be inserted in Clause 17.1
(Financial Covenants):

	 	(i)	 	“(e) Capital Expenditure (Non-Shanghai):
Subject to the terms of clause 15.0 (Capital Expenditure),
Capital Expenditure (other than that incurred in relation to
the Shanghai Joint Venture the limits of which are specified
in columns (2) and (3) of Schedule VIII (Capital Expenditure
Projections)) incurred by the Group during any Accounting
Reference Period shall not exceed the corresponding amount
for such period set out in column (1) of Schedule VIII
(Capital Expenditure Projections).”
	 
	 	(ii)	 	“(f) Capital Expenditure (Shanghai — Base):
Subject to the terms of clause 15.9 (Capital Expenditure),
Capital Expenditure incurred in relation to the Shanghai
Joint Venture incurred by the Group during any Accounting
Reference Period (other than that referred to in (g) below)
shall not exceed the

 

 

	 	 	 	corresponding amount for such period set out in column (2)
of Schedule VIII (Capital Expenditure Projections).”
	 
	 	(iii)	 	“(g) Capital Expenditure (Shanghai —
Expansion): Capital Expenditure as referred to in
Presentation 1 and Presentation 2 in relation to the Shanghai
Joint Venture incurred by the Group during any Accounting
Reference Period shall not exceed the corresponding amount
for such period set out in column (3) of Schedule VIII
(Capital Expenditure Projections). For the avoidance of
doubt this element of Capital Expenditure shall be excluded
from the definition of Capital Expenditure for the
calculation of the other Financial Covenants.”
	 
	 	(iv)	 	“(h) Swiss Reorganisation Expenditure: the
aggregate profit & loss cash flow costs in effecting the
Swiss reorganisation (or elements thereof) referred to in
Presentation 1 during any Accounting Reference Period shall
not exceed the relevant amounts against such costs (or
elements thereof) for such period set out in Schedule XVI
(parts 1 & 2).”

	 	(g)	 	Clause 17.2(b) (Testing of Covenants)
	 
	 	 	 	Clause 17.2(b) (Testing of Covenants) shall be amended by the
deletion of the words “The” to “shall” in the first line thereof
inclusive and the insertion in their place of the words “, The
covenants contained in clauses 17.1(d) (Adjusted Consolidated Net
Worth), (e) (Capital Expenditure (Non-Shanghai), (f) (Capital
Expenditure (Shanghai — Base)), (g) (Capital Expenditure (Shanghai
 — Expansion)) and (h) (Swiss Reorganisation Expenditure) shall”.
	 
	 	(h)	 	Clause 2.5 (Purpose)
	 
	 	 	 	Clauses 2.5 (b)(iii) and (iv) shall be deleted and replaced with
the following:
	 
	 	 	 	“(iii) for the general purposes of the Group up to a maximum
aggregate amount of US$27,200,000 and (iv) in refinancing
indebtedness under the Subordinated Notes up to a maximum
aggregate amount of US$7,800,000.”
	 
	 	(i)	 	Clause 1.1 (Definitions)
	 
	 	 	 	The definition of “Permitted Encumbrance” shall be supplemented by
the insertion of a new paragraph (j) as follows:
	 
	 	 	 	“(j) Encumbrances arising from the issuance of surety bonds in
relation to contracts with an aggregate principal value or amount
not exceeding US$1,000,000 and with a tenor of one year or less.
	 
	 	(j)	 	A new Schedule XVI shall be inserted in the Facilities
Agreement in the form set out in the Schedule to this letter.
	 
	 	(k)	 	A new clause 16.2(b)(viii) shall be inserted as follows:
	 
	 	 	 	“(vii) a report on progress on achieving the projections and costs
budgeted for the Group in connection with the re-organisation of
the operations of Trench Switzerland AG as set out in Schedule
XVI.

 

 

2.       APPROVALS

For the avoidance of doubt no waivers are given under this letter in respect of
any other breach of, or other Event or Default or Potential Event of Default
under, the Facilities Agreement or any other Senior Finance Document which
might result from any other circumstances at any time other than as
specifically set out herein.

The agreement and consents of the Banks contained in this letter shall apply
only to the matters specifically referred to herein and are given in relevance
upon the information (other than any projections) provided to the Agent on
behalf of the Group being true, complete and accurate, and such projections
being prepared in good faith based upon reasonable assumptions. Such agreement
and consents shall be without prejudice to any rights which the Finance Parties
may now or hereafter have in relation to any other circumstances or matters
other than as specifically referred to herein (and whether subsisting on the
date hereof or otherwise) or in relation to any information being other than
true, complete and accurate, which rights shall remain in full force and
effect.

This letter may be executed in any number of counterparts and this has the same
effect as if the signatures on the counterparts were on a single copy of this
letter.

This letter shall be governed by and construed in accordance English Law and
clause 38 (Governing Law and Jurisdiction) of the Facilities Agreement shall
apply mutatis mutandis as if set out in full in this letter.

Yours faithfully

For and on behalf of

CIBC World Markets Plc

In its capacity as Agent

For and on behalf of the Banks

By:     /s/ Richard Vaughan

To:     CIBC World Markets Plc

We confirm our acceptance of and agreement to your letter of 12th July 2000.

For and on behalf of

/s/ M. J. Bissell

Michael John Bissell

Trench Electric Holding B.V.

(for itself and in its capacity as

Parent and agent for each of the Obligors)

Date: 18th July 2001

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