Document:

exv10w71

Exhibit 10.71

EXECUTION COPY

AMENDMENT NO. 1 TO THE

CREDIT AGREEMENT

Dated as of May 22, 2009

          AMENDMENT NO. 1 TO THE CREDIT AGREEMENT among APPLIED MATERIALS, INC., a Delaware corporation
(the “Borrower”), the banks, financial institutions and other institutional lenders parties
to the Credit Agreement referred to below (collectively, the “Lenders”) and Citicorp USA,
Inc., as agent (the “Agent”) for the Lenders.

          PRELIMINARY STATEMENTS:

          (1) The Borrower, the Lenders and the Agent have entered into a Credit Agreement dated as of
January 26, 2007 (the “Credit Agreement”). Capitalized terms not otherwise defined in this
Amendment have the same meanings as specified in the Credit Agreement.

          (2) The Borrower and the Required Lenders have agreed to amend the Credit Agreement as
hereinafter set forth.

          SECTION 1. Amendments to Credit Agreement. The Credit Agreement is, effective as of the date hereof and subject to the satisfaction of
the conditions precedent set forth in Section 2, hereby amended as follows:

          (a) Section 1.01 of the Credit Agreement is hereby amended by deleting the definitions of
“Applicable Margin”, “Applicable Percentage”, “Base Rate” and “Public Debt Rating” in their
entirety and substituting in lieu thereof the following:

     “Applicable Margin” means, as of any date, a percentage per annum determined by
reference to the Public Debt Rating in effect on such date as set forth below:

	 	 	 	 	 
	 	 	Applicable Margin	 	Applicable Margin
	Public Debt Rating
 	 	for Base Rate	 	for Eurodollar Rate
	S&P/Moody’s
 	 	Advances	 	Advances
	Level 1
	 	 	 	 
	A+/A1 or above
	 	***	 	***
	Level 2
	 	 	 	 
	A/A2
	 	***	 	***
	Level 3
	 	 	 	 
	A-/A3
	 	***	 	***
	Level 4
	 	 	 	 
	BBB+/Baa1
	 	***	 	***
	Level 5
	 	 	 	 
	Lower than Level 4 or
unrated
	 	***	 	***

 

			
	*** 	 	INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

 

     “Applicable Percentage” means, as of any date, a percentage per annum
determined by reference to the Public Debt Rating in effect on such date as set forth below:

	 	 	 
	Public Debt Rating
 	 	 
	S&P/Moody’s 
 	 	Applicable Percentage
	Level 1
	 	 
	A+/A1 or above
	 	***
	Level 2
	 	 
	A/A2
	 	***
	Level 3
	 	 
	A-/A3
	 	***
	Level 4
	 	 
	BBB+/Baa1
	 	***
	Level 5
	 	 
	Lower than Level 4 or unrated
	 	***

     “Base Rate” means a fluctuating interest rate per annum in effect from time to
time, which rate per annum shall at all times be equal to the highest of:

     (a) the rate of interest announced publicly by Citibank in New York, New York, from
time to time, as Citibank’s base rate;

     (b) 1/2 of one percent per annum above the Federal Funds Rate; and

     (c) the British Bankers Association Interest Settlement Rate applicable to Dollars for
a period of one month (“One Month LIBOR”) plus 1.00% (for the avoidance of doubt, the One
Month LIBOR for any day shall be based on the rate appearing on Reuters LIBOR01 Page (or
other commercially available source providing such quotations as designated by the Agent
from time to time) at approximately 11:00 a.m. London time on such day).

     “Public Debt Rating” means, as of any date for S&P, the lowest rating that has
been most recently announced by S&P for any class of non-credit enhanced long-term senior
unsecured debt issued by the Borrower and, as of any date for Moody’s, the lowest rating
that has been most recently announced by Moody’s for any class of non-credit enhanced
long-term senior unsecured debt issued by the Borrower. For purposes of the foregoing,
(a) if only one of S&P and Moody’s shall have in effect a Public Debt Rating, the Applicable
Margin and the Applicable Percentage shall be determined by reference to the available
rating; (b) if neither S&P nor Moody’s shall have in effect a Public Debt Rating, the
Applicable Margin and the Applicable Percentage will be set in accordance with Level 5 under
the definition of “Applicable Margin” or “Applicable Percentage”, as the
case may be; (c) if the ratings established by S&P and Moody’s shall fall within different
levels, the Applicable Margin and the Applicable Percentage shall be based upon the higher
rating unless the such ratings differ by two or more levels, in which case the applicable

 

			
	***   	 	INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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level will be deemed to be one level above the lower of such levels; (d) if any rating
established by S&P or Moody’s shall be changed, such change shall be effective as of the
date on which such change is first announced publicly by the rating agency making such
change; and (e) if S&P or Moody’s shall change the basis on which ratings are established,
each reference to the Public Debt Rating announced by S&P or Moody’s, as the case may be,
shall refer to the then equivalent rating by S&P or Moody’s, as the case may be.

          (b) Section 1.01 of the Credit Agreement is hereby amended by deleting the definition
“Applicable Utilization Fee” in its entirety.

          (c) Section 1.01 is amended by adding the following definitions in appropriate alphabetical
order:

     “Affected Lender” means any Lender that (a) is a Defaulting Lender, (b) has
otherwise failed to pay over to the Agent or any other Lender any other amount required to
be paid by it hereunder within one Business Day of the date when due, unless the subject of
a good faith dispute or unless such failure has been cured, or (c) is (or whose parent
company is) in bankruptcy or insolvency proceedings, has had a receiver, conservator,
trustee or custodian appointed for it, or has taken any corporate action authorizing, or
indicating its consent to, approval of or acquiescence in any such proceeding or
appointment.

     “Defaulted Advance” means any Advance that a Defaulting Lender has failed to
make.

     “Defaulting Lender” means any Lender that (i) failed to fund any portion of its
Advances within three Business Days of the date required to be funded by it hereunder, (ii)
notified the Borrower, the Agent, or any Lender in writing that it does not intend to fund
any of its Commitments, (iii) has made a public statement or announcement to the effect that
it does not intend to fund or honor its commitments under agreements in which it has
committed to extend credit or (iv) failed, within three Business Days after request by the
Agent, to confirm it will comply with the terms of this Agreement relating to its
obligations to fund prospective Advances.

          (d) Section 2.04 is hereby amended by adding the words “(a) Optional Ratable Termination
or Reduction” immediately preceding the first sentence contained therein and adding the
following new subclause (b) immediately after the end of the last sentence therein:

     (b) Non-Ratable Reduction. The Borrower, at its sole discretion, shall have
the right, but not the obligation, at any time so long as no Event of Default has occurred
and is continuing, upon at least ten Business Days’ notice to an Affected Lender (with a
copy to the Agent), to terminate in whole such Affected Lender’s Commitment. Such
termination shall be effective with respect to such Affected Lender’s Unused Commitment on
the date set forth in such notice, provided, however, that such date shall
be no earlier than ten Business Days after receipt of such notice. Upon termination of a
Lender’s Commitment under this Section 2.04(b), the Borrower will pay all principal of, and
interest accrued to the date of such payment on, Advances owing to such Affected Lender and
pay any accrued fees payable to such Affected Lender pursuant to the provisions of Section
2.03, and all other amounts payable to such Affected Lender hereunder (including, but not
limited to, any increased costs or other amounts owing under Section 2.10, any
indemnification for taxes under Section 2.13, and any compensation payments due as provided
in Section 8.04); and upon such payments, the obligations of such Affected Lender hereunder
shall, by the provisions hereof, be released and discharged; provided,
however, that (i) such Affected Lender’s rights under Sections 2.10, 2.13 and 8.04,
and its obligations under Sections 7.05 and 8.08 shall survive such release and discharge as
to matters occurring prior to such date; and (ii) no

3

 

claim that the Borrower may have against such Affected Lender arising out of such
Affected Lender’s default hereunder shall be released or impaired in any way. The aggregate
amount of the Commitments of the Lenders once reduced pursuant to this Section 2.04(b) may
not be reinstated; provided further, however, that if pursuant to
this Section 2.04(b), the Borrowers shall pay to an Affected Lender any principal of, or
interest accrued on, the Advances owing to such Affected Lender, then the Borrower shall
either (x) confirm to the Agent that the conditions set forth in Section 3.02 are met on and
as of such date of payment or (y) pay or cause to be paid a ratable payment of principal and
interest to all Lenders who are not Affected Lenders.

          (e) Section 2.06(a) is amended by deleting the phase “plus (z) the Applicable Utilization Fee
in effect from time to time” in each of the places such phrase appears.

          (f) Article II is hereby amended by inserting at the end thereof the following new Section
2.19:

     SECTION 2.19 Defaulting Lenders. Anything contained herein to the
contrary notwithstanding, (a) to the extent permitted by applicable law, any
prepayment of the Advances shall, if the Borrower so directs at the time of making
such prepayment, be applied to the Advances of Lenders other than any Defaulting
Lender as if such Defaulting Lender had no Advances outstanding; and (b) the
aggregate amount of the Advances as at any date of determination shall be calculated
as if such Defaulting Lender had funded all Defaulted Advances of such Defaulting
Lender for purposes of determining the aggregate amount of the total Commitments
available to be drawn by the Borrower.

     No Commitment of any Lender shall be increased or otherwise affected, and,
except as otherwise expressly provided in this Section 2.19, performance by any
Borrower or any Lender of its obligations hereunder shall not be excused or
otherwise modified as a result of any failure by a Defaulting Lender to fund or the
operation of this Section 2.19. The rights and remedies against a Defaulting Lender
under this Section 2.19 are in addition to other rights and remedies that the
Borrower, the Agent or any other Lender may have against such Defaulting Lender with
respect to any Defaulted Advance.

          (g) Section 4.01(d) is hereby amended (i) by replacing the date “October 29, 2006” with the
date “October 26, 2008” in both places such date appears and (ii) by replacing the phrase “2006
Form 10-K” with the phrase “2008 Form 10-K”.

          (h) Section 4.01(e) is hereby amended by replacing the phrase “2006 Form 10-K” with the phrase
“2008 Form 10-K”.

          (i) Section 5.03 is amended in full to read as follows:

     SECTION 5.03. Financial Covenants. So long as any Advance shall remain unpaid
or any Lender shall have any Commitment hereunder, the Borrower will:

4

 

          (a) Debt/Capital Ratio. Maintain, as of the last day of each fiscal quarter, a
ratio of Consolidated Funded Debt to the sum of Consolidated Funded Debt plus Consolidated
shareholders’ equity of not greater than ***.

          (b) Maintenance of Cash and Investments. Maintain, as of last day of each
fiscal quarter and on the date of any Borrowing, an aggregate Consolidated balance of
unrestricted and unencumbered cash, cash equivalents and short and long-term investments
minus the aggregate principal amount of the Advances outstanding on such date in an amount
of not less than ***; provided that not less than *** of such unrestricted and
unencumbered cash, cash equivalents and short and long-term investments shall be maintained
by the Borrower and its wholly-owned U.S. Subsidiaries; provided further
that for purposes of the foregoing calculations of long-term investments, such investments
shall not include any non-public private equity investments.

          (j) Section 8.07(a) is amended by adding immediately after the phrase “under Section 2.13” the
phrase “or such Lender becoming an Affected Lender”.

          SECTION 2. Conditions of Effectiveness. This Amendment shall become effective as of the date first above written when, and only
when, the Agent shall have received counterparts of this Amendment executed by the Borrower and the
Required Lenders and the Agent shall have additionally received all of the following documents,
each such document (unless otherwise specified) dated the date of receipt thereof by the Agent
(unless otherwise specified) and in sufficient copies for each Lender, in form and substance
satisfactory to the Required Lenders (unless otherwise specified) and in sufficient copies for each
Lender:

          (a) Certified copies of the general resolutions of the Board of Directors of the Borrower
which authorize the Borrower to enter into this Amendment, the Credit Agreement as amended hereby
and the matters contemplated hereby and thereby and all documents evidencing other necessary
corporate action and governmental approvals, if any, with respect to this Amendment, the Credit
Agreement and the matters contemplated hereby and thereby.

          (b) A certificate of the Secretary or an Assistant Secretary of the Borrower certifying the
names and true signatures of the officers of the Borrower authorized to sign this Amendment and the
other documents to be delivered hereunder and thereunder.

          (c) A favorable opinion of Vice President, Legal Services of the Borrower and of Orrick,
Herrington & Sutcliffe LLP, in substantially the forms of Exhibit A and Exhibit B, respectively,
hereto and as to such other matters as any Lender through the Agent may reasonably request.

          (d) A certificate signed by a duly authorized officer of the Borrower stating that:

     (i) The representations and warranties contained in Section 3 of this
Amendment, and in Section 4.01 of the Credit Agreement, as amended hereby, are
correct on and as of the date of such certificate as though made on and as of such
date; and

 

			
	***   	 	INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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     (ii) No event has occurred and is continuing that constitutes a Default.

          SECTION 3. Representations and Warranties of the Borrower
The Borrower represents and warrants as follows:

          (a) The Borrower is a corporation duly organized, validly existing and in good standing under
the laws of its jurisdiction of incorporation.

          (b) The execution, delivery and performance by the Borrower of this Amendment and the Credit
Agreement, as amended hereby, and the consummation of the transactions contemplated hereby, are
within the Borrower’s corporate powers, have been duly authorized by all necessary corporate
action, require no action by or in respect of, or filing with, any governmental body, agency or
official and do not contravene or constitute a default under (i) the certificate of incorporation
or by-laws of the Borrower, (ii) any agreement that purports to affect the Borrower’s ability to
borrow money or the Borrower’s obligations under the Agreement, as amended hereby, or any judgment,
injunction, order or decree binding upon the Borrower or any of its Subsidiaries, (iii) any
provision of material applicable law or regulation or result in the creation or imposition of any
Lien on any asset of the Borrower or any of its Subsidiaries not otherwise permitted by Section
5.02(a) of the Credit Agreement.

          (c) This Amendment has been duly executed and delivered by the Borrower. This Amendment and
the Credit Agreement, as amended hereby, each constitutes a valid and binding agreement of the
Borrower enforceable in accordance with its terms, except as limited by (i) bankruptcy, insolvency
or similar laws affecting creditors’ rights generally and (ii) general principles of equity.

          (d) There is no action, suit or proceeding pending against, or to the knowledge of the
Borrower any investigation, action, suit or proceeding threatened against or affecting, the
Borrower or any of its Subsidiaries before any court or arbitrator or any governmental body, agency
or official which in any manner draws into question the validity of this Amendment or the Credit
Agreement, as amended hereby.

          SECTION 4. Reference to and Effect on the Credit Agreement and the Notes. (a) On and after the effectiveness of this Amendment, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the
Credit Agreement, and each reference in the Notes to “the Credit Agreement”, “thereunder”,
“thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference
to the Credit Agreement, as amended by this Amendment.

          (b) The Credit Agreement and the Notes, as specifically amended by this Amendment, are and
shall continue to be in full force and effect and are hereby in all respects ratified and
confirmed.

          (c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly
provided herein, operate as a waiver of any right, power or remedy of any Lender or the Agent under
the Credit Agreement, nor constitute a waiver of any provision of the Credit Agreement.

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          SECTION 5. Costs and Expenses
The Borrower agrees to pay on demand all costs and expenses of the Agent in connection with
the preparation, execution, delivery and administration, modification and amendment of this
Amendment and the other instruments and documents to be delivered hereunder (including, without
limitation, the reasonable fees and expenses of counsel for the Agent) in accordance with the terms
of Section 8.04 of the Credit Agreement.

          SECTION 6. Execution in Counterparts. This Amendment may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute but one and the same agreement. Delivery of an
executed counterpart of a signature page to this Amendment by telecopier shall be effective as
delivery of a manually executed counterpart of this Amendment.

          SECTION 7. Governing Law. This Amendment shall be governed by, and construed in accordance with, the laws of the
State of New York.

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          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 	 	 
	 	 	APPLIED MATERIALS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By

Title:
	 	/s/ Robert Friess
 

Treasurer
	 	 
	 
	 	 	 	 	 	 
	 	 	CITICORP USA, INC.,

   as Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By

Title:
	 	/s/ Kevin Ege
 

Vice President
	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,
SEATTLE BRANCH	 	 
	 
	 	 	 	 	 	 
	 

	 	By

Title:
	 	/s/ Victor Pierzchalski
 

Authorized Signatory
	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By

Title:
	 	/s/ Sharon Bazbaz
 

Vice President
	 	 
	 
	 	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By

Title:
	 	/s/ Raed Y. Alfayoumi
 

Vice President
	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By

Title:
	 	/s/ Kevin McMahon
 

Senior Vice President
	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK MELLON	 	 
	 
	 	 	 	 	 	 
	 

	 	By

Title:
	 	/s/ Daniel Lenckos
 

First Vice President
	 	 
	 
	 	 	 	 	 	 
	 	 	WILLIAM STREET COMMITMENT
CORPORATION (Recourse only to the assets of
William Street Commitment Corporation)	 	 
	 
	 	 	 	 	 	 
	 

	 	By

Title:
	 	/s/ Mark Walton
 

Assistant Vice President
	 	 

8

 

	 	 	 	 	 	 	 
	 	 	MORGAN STANLEY BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By

Title:
	 	/s/ Melissa James
 

Authorized Signatory
	 	 
	 
	 	 	 	 	 	 
	 	 	INDUSTRIAL AND COMMERCIAL BANK

OF CHINA LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By

Title:
	 	/s/ Jiang Tao
 

General Manager, Banking Dept.
	 	 
	 
	 	 	 	 	 	 
	 	 	DBS BANK LTD., LOS ANGELES AGENCY	 	 
	 
	 	 	 	 	 	 
	 

	 	By

Title:
	 	/s/ James McWalter
 

General Manager
	 	 
	 
	 	 	 	 	 	 
	 	 	CHINA CONSTRUCTION BANK CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By

Title:
	 	/s/ Wei, Cheng Guo
 

Deputy General Manager, 

Shaan Xi Branch
	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF CHINA, NEW YORK BRANCH	 	 
	 
	 	 	 	 	 	 
	 

	 	By

Title:
	 	/s/ William W. Smith
 

Deputy General Manager
	 	 

9exv10w1

Exhibit 10.1

FIRST AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

     THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”) is made as of August 28, 2009 (the “First Amendment Effective Date”),
by and among FLOW INTERNATIONAL CORPORATION, a Washington corporation (“Borrower”), the
undersigned lenders party to the Credit Agreement referred to below (collectively, the
“Lenders” and individually, a “Lender”), and BANK OF AMERICA, N.A., as Agent, Swing
Line Lender and L/C Issuer.

RECITALS

     A. Borrower, Lenders, Agent, Swing Line Lender and L/C Issuer are parties to that certain
Second Amended and Restated Credit Agreement dated as of June 10, 2009 (as amended, restated or
modified from time to time, the “Credit Agreement”).

     B. Borrower, Lenders constituting the Required Lenders (the “Required Lenders”),
Agent, Swing Line Lender and L/C Issuer wish to amend the Credit Agreement as set forth in this
Amendment.

     NOW, THEREFORE, the parties hereto agree as follows:

AGREEMENT

     1. Definitions; Interpretation. Capitalized terms not otherwise defined in this Amendment
shall have the meanings given in the Credit Agreement, as amended by this Amendment. The rules of
construction and interpretation specified in Sections 1.02 through 1.05 of the
Credit Agreement shall also apply to this Amendment and are incorporated herein by this reference.

     2. Amendments to Credit Agreement. The Credit Agreement is hereby amended as follows,
effective as of the First Amendment Effective Date:

          (a) Amendment to Definitions. In Section 1.01, amendments are made to the definitions
as follows:

               (i) Applicable Rate. The table set forth in the definition of “Applicable Rate” is amended
and restated to read as follows:

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	Pricing	 	Consolidated	 	Eurodollar	 	Base Rate	 	Commitment	 	Letters of
	Level	 	Leverage Ratio	 	Rate +	 	+	 	Fee	 	Credit
	1	 	≥ 3.00
	 	4.50%	 	3.50%	 	.90%	 	4.50%
	2	 	≥ 2.50 but < 3.00
	 	4.125%	 	3.125%	 	.725%	 	4.125%
	3	 	≥ 1.75 but < 2.50
	 	3.75%	 	2.75%	 	.55%	 	3.75%
	4	 	≥ 1.00 but < 1.75
	 	3.50%	 	2.50%	 	.425%	 	3.50%
	5	 	<1.00
	 	3.25%	 	2.25%	 	.30%	 	3.25%

               (ii) Indemnification Claim. The following is added as a new defined term to Section 1.01 of
the Credit Agreement:

     “Indemnification Claim” means any claim for indemnification pursuant to
that certain Purchase Agreement dated September 30, 2005 between Flow International
Corporation and Quintus Holdings LLC.

               (iii) First Amendment. The following is added as a new defined term to Section 1.01 of the
Credit Agreement:

     “First Amendment” means that certain First Amendment to Second Amended
and Restated Credit Agreement dated as of August 28, 2009 among Borrower, Lenders
and Agent.

          (b) Amendment to Section 1 of Schedule 7.11. Section 1 of Schedule 7.11 is hereby
amended and restated to read as set forth below. Beginning on the First Amendment Effective Date,
such amendment to Section 1 of Schedule 7.11 shall be deemed to have become effective as of
the first day of Borrower’s first fiscal quarter of fiscal year 2010.

          1. Consolidated Senior Leverage Ratio.

          (a) Permit the Consolidated Senior Leverage Ratio, for the period of four
fiscal quarters of Borrower ending as of the end of the first fiscal quarter of 2010
to be greater than 3.25:1. The Special Adjustments to Consolidated Adjusted EBITDA
set forth in Column 1 of the Flow Adjustments Chart and in paragraph (A) of the
definition of “Flow Adjustment Amount” in Schedule 1.01 to the First
Amendment shall apply in calculating the Flow Adjustment Amount, Consolidated
Adjusted EBITDA, Consolidated Senior Leverage Ratio and Consolidated Fixed Charge
Coverage Ratio for purposes of determining Borrower’s compliance with the covenants
in this Schedule 7.11 for the period of four fiscal quarters of Borrower ending as of the end of Borrower’s
first fiscal quarter of fiscal year 2010.

2

 

          (b) Permit the Consolidated Senior Leverage Ratio, for any period of four
fiscal quarters of the Borrower ending as of the end of the fiscal quarter of the
Borrower set forth in the following table, to be greater than the amount determined
pursuant to the following table:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	As of end of
	 	 	As of end of	 	As of end of	 	Borrower’s 4th fiscal
	 	 	Borrower’s 2nd	 	Borrower’s 3rd fiscal	 	quarter 2010 and
	 	 	fiscal quarter 2010	 	quarter 2010	 	thereafter
	If no charge is
recorded related to
the Indemnification
Claim

	 	2.85:1
	 	2.25:1
	 	2.00:1
	 
	 	 	 	 	 	 
	If a charge is
recorded related to
the Indemnification
Claim

	 	3.25:1
	 	2.50:1
	 	2.00:1

For the avoidance of doubt, Schedule 1.01 attached to the Credit Agreement,
as in effect prior to the date of the First Amendment, rather than the Schedule 1.01
attached to the First Amendment, shall apply in calculating the Flow Adjustment
Amount, Consolidated Adjusted EBITDA, Consolidated Senior Leverage Ratio and
Consolidated Fixed Charge Coverage Ratio for purposes of determining Borrower’s
compliance with the covenants in this Schedule 7.11 for the period of four
fiscal quarters of the Borrower ending as of the end of Borrower’s second fiscal
quarter of fiscal year 2010 and thereafter unless the conditions set forth in
clauses (a) and (b) of Section 3 of the First Amendment are satisfied on or before
the Cut-off Date (as defined in the First Amendment).

     3. Conditional Amendments to Credit Agreement. If, on or prior to the last day of Borrower’s
second fiscal quarter of Borrower’s fiscal year 2010 (the “Cut-off Date”), (a) Borrower
shall have provided evidence satisfactory to Agent and the Required Lenders that Borrower has
raised Ten Million Dollars ($10,000,000) or more of new capital through one or more sales of
Borrower’s common or preferred stock or any rights in or to Borrower’s common or preferred stock to
one or more unaffiliated third parties, and (b) unless the sale is of common stock, Agent and the
Required Lenders shall have approved the form(s) of equity interests sold by Borrower in connection
with such sale transaction(s) in writing (such approval to be in Agent and the Required Lenders’
sole discretion), the Credit Agreement shall be deemed further amended as provided in this Section
3. If the conditions in clauses (a) and (b) are satisfied on or

3

 

before the Cut-off Date, then the amendments set forth in this Section 3 shall be deemed
effective beginning on the first day of Borrower’s second fiscal quarter of Borrower’s fiscal year
2010. For the avoidance of doubt, if the conditions set forth in clauses (a) and (b) above have
not been satisfied on or prior to the Cut-off Date, the amendments set forth in this Section 3
shall not become effective.

          (a) Conditional Amendments to Definitions. In Section 1.01, amendments are made to
the definitions as follows:

               (i) Consolidated Fixed Charge Coverage Ratio. The definition of “Consolidated Fixed Charge
Coverage Ratio” is amended and restated to read as follows:

     “Consolidated Fixed Charge Coverage Ratio” means, as of any date of
determination, the ratio of (a) the sum of Consolidated Adjusted EBITDA minus the sum of
cash taxes paid or otherwise incurred minus Maintenance Capital Expenditures to (b) the sum
of Consolidated Interest Charges (except (i) non-cash payment-in-kind or non-cash deferred
interest pursuant to (aa) OMAX Subordinated Debt and (bb) any preferred stock sold by
Borrower in connection with the satisfaction of the conditions set forth in the first
paragraph of Section 3 of the First Amendment and (ii) financing costs deferred prior to the
Closing Date) and the current portion of 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).

               (ii) Maintenance Capital Expenditures. A new definition of “Maintenance Capital Expenditures”
is added to read as follows:

          “Maintenance Capital Expenditures” means, for each fiscal quarter of Borrower, the
amount of Five Hundred Thousand Dollars ($500,000).

          (b) Conditional Amendment to Schedule 1.01. Schedule 1.01 of the Credit Agreement is hereby
amended and restated as set forth in Schedule 1.01 attached to this Amendment, which is
incorporated into the Credit Agreement by this reference.

          (c) Conditional Amendment to Schedule 7.11. Schedule 7.11 attached to the Credit
Agreement is hereby amended and restated to read as set forth in Schedule 7.11 attached to
this Amendment, which is incorporated into the Credit Agreement by this reference. For the
avoidance of doubt, (i) pursuant to Section 2 of this Amendment, the amendment and restatement of
Section 1 of Schedule 7.11 shall become effective as of the First Amendment Effective Date
irrespective of the satisfaction of the conditions set forth in the first paragraph of this Section
3, (ii) Section 1 of Schedule 7.11 shall be further amended and restated if and when the
conditional amendment set forth in this Section 3(c) becomes effective, and (iii) if the
conditional amendment set forth in this Section 3(c) does not become effective, Schedule
7.11 to the Credit Agreement, as amended in Section 2(b) of this Amendment, shall remain in
effect.

4

 

          (d) Conditional Amendment to Exhibit D. Exhibit D attached to the Credit Agreement is
hereby deleted in its entirety and replaced with Exhibit D attached to this Amendment,
which is incorporated into the Credit Agreement by this reference.

     4. Conditions to Effectiveness. Without limiting the additional conditions precedent to the
effectiveness of the amendments described in Section 3 herein, this Amendment shall become
effective upon fulfillment, to Agent’s satisfaction, of each the following conditions (unless
waived in writing by Agent):

          (a) Delivery of Amendment. The Borrower, each Required Lender, the Agent, the L/C Issuer, and
the Swing Line Lender shall have each executed and delivered counterparts (in sufficient copies for
each Lender) of this Amendment to the Agent;

          (b) Payment of Fees. The Borrower shall have paid (i) to the Agent for the ratable benefit of
the Lenders in accordance with their respective Applicable Percentages, an amendment fee in the
amount and at the time specified in the letter agreement dated August 28, 2009 between the Borrower
and the Agent (the “Fee Letter”), and (ii) to the Agent for its own account an arrangement
fee in the amount and at the time specified in the Fee Letter, all of which fees shall be deemed
fully earned when due and non-refundable when paid;

          (c) Reimbursement for Expenses. The Borrower shall have reimbursed the Agent for all
documented expenses actually incurred by the Agent in connection with the preparation of this
Amendment and the other Loan Documents and shall have paid all other amounts due and owing under
the Loan Documents;

          (d) Representations True; No Default. After giving effect to this Amendment and the
transactions contemplated hereby, (i) the representations and warranties of the Borrower and the
other Loan Parties contained in Article V of the Credit Agreement or any other Loan
Documents, or which are contained in any documents furnished at any time under or in connection
herewith or therewith, shall be true and correct on and as of the date of this Amendment, except to
the extent that such representations and warranties specifically refer to an earlier date, in which
case they are true and correct as of such earlier date, and except that the representations and
warranties contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement
shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b),
respectively, of Section 6.01 of the Credit Agreement, and (ii) no Default and no Event of
Default exists or will occur as a result of the execution of this Amendment; and

          (e) Other Documents. The Agent and each Required Lender shall have received such other
documents, instruments, and undertakings as the Agent and such Lender may reasonably request.

     5. Agent Authorizations. The Lenders, the L/C Issuer and the Swing Line Lender hereby
authorize and instruct the Agent to execute and deliver this Amendment.

     6. No Further Amendment. Except as expressly modified by this Amendment, the Credit Agreement
and the other Loan Documents shall remain unmodified and in full force and effect and the parties
hereby ratify their respective obligations thereunder. References in the

5

 

Credit Agreement to “this Agreement” (and indirect references such as “hereunder”, “hereby”,
“herein”, and “hereof”) and in any Loan Document to the Credit Agreement shall be deemed to be
references to the Credit Agreement as modified hereby.

     7. Reservation of Rights. The Borrower acknowledges and agrees that the execution and
delivery by the Required Lenders, the Agent, the L/C Issuer and the Swing Line Lender of this
Amendment shall not be deemed to create a course of dealing or otherwise obligate the Lenders, the
Agent, the L/C Issuer or the Swing Line Lender to forbear or execute similar amendments under the
same or similar circumstances in the future.

     8. Miscellaneous.

          (a) Integration. This Amendment, together with the other Loan Documents, comprise the
complete and integrated agreement of the parties on the subject matter hereof and thereof and
supersede all prior agreements, written or oral, on such subject matter.

          (b) Severability. Any provision of this Amendment that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions thereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

          (c) Counterparts. This Amendment may be executed in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument.

          (d) Governing Law. This Amendment shall be governed by and construed in accordance with the
laws of the State of Washington.

          (e) Oral Agreements Not Enforceable.

ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FOREBEAR FROM ENFORCING
REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.

[Signature Pages Follow]

6

 

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of
the date first above written.

	 	 	 	 	 
	 	FLOW INTERNATIONAL CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BANK OF AMERICA, N.A., as Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BANK OF AMERICA, N.A., as a Lender, L/C Issuer and

Swing Line Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WELLS FARGO BANK N.A., as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

7

 

SCHEDULE 1.01

SPECIAL ADJUSTMENTS TO CONSOLIDATED ADJUSTED EBITDA

Flow Adjustments Chart

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	1	 	2	 	3	 	4
	 	 	Flow Adjustment Calculation Date 
	 	The end of Fiscal 1st	 	The end of Fiscal 2nd	 	The end of Fiscal 3rd	 	The end of Fiscal 4th
	 	 	 
	 	quarter 2010	 	quarter 2010	 	quarter 2010	 	quarter 2010
	 	 	 
	 	 	 	 	 	 	 	 
	A	 	Costs related to
terminated
Acquisition
	 	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 $700,000	 	Up to $300,000	 	$0	 	$0
	 	 	 
	 	 	 	 	 	 	 	 
	C	 	Expenses relating
to settlement of
OMAX patent
litigation
	 	$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 $1,900,000	 	Up to $1,900,000	 	Up to $1,900,000	 	Up to $1,200,000
	 	 	 
	 	 	 	 	 	 	 	 
	E	 	Expenses incurred
by Borrower and its
Subsidiaries during
the applicable
period in
connection with any
Indemnification
Claim
	 	Up to $1,700,000	 	Up to $1,700,000	 	Up to $1,700,000	 	Up to $1,700,000

8

 

     “Acquisition” means the acquisition by Borrower of all or substantially all of the
Equity Interests of OMAX.

     “Acquisition Termination Fee Adjustment Amount” means, in the case of a calculation of
“Consolidated Adjusted EBITDA” made as of the Flow Adjustment Calculation Date at the end of the
fiscal quarter in which Borrower first recognizes a charge for the fee to terminate the Acquisition
and as of the three consecutive Flow Adjustment Calculation Dates thereafter, the amount of the fee
paid by Borrower to terminate the Acquisition, such amount not to exceed $6,000,000.

     “Flow Adjustment Calculation Date” means, as applicable, the end of the fourth fiscal
quarter of the Borrower’s fiscal year ending April 30, 2009, and the end of the first, second,
third and fourth fiscal quarters of the Borrower’s fiscal year ending April 30, 2010, respectively
(as referred to in Columns 1, 2, 3, 4, and 5, respectively, of the Flow Adjustments Chart above).

     “Flow Adjustment Amount” means:

     (A) with respect to the Flow Adjustment Calculation Date referred to in Column 1 above, the
sum of:

(i) Borrower’s cost related to the terminated Acquisition during the four fiscal
quarter period ending on such calculation date up to $4,250,000 (referred to in Cell
A.1 above), plus

(ii) application business exit and Burlington facility closedown expenses incurred
during the four fiscal quarter period ending on such calculation date up to $700,000
(referred to in Cell B.1 above); plus

(iii) Borrower’s expenses related to the settlement of the OMAX patent litigation
incurred during the four fiscal quarter period ending on such calculation date of
$29,000,000 (referred to in Cell C.1 above); plus

(iv) Borrower’s expenses related to reductions in force and closure of Flow’s Taiwan
manufacturing facility incurred during the four fiscal quarter period ending on such
calculation date up to $1,900,000 (referred to in Cell D.1 above); plus

9

 

(v) expenses by Borrower and its Subsidiaries during the applicable period in
connection with any Indemnification Claim up to $1,700,000 (referred to in Cell E.1
above); plus

(vi) the Acquisition Termination Fee Adjustment Amount, if any;

     (B) with respect to the Flow Adjustment Calculation Date referred to in Column 2 above, the
sum of:

(i) Borrower’s cost related to the terminated Acquisition during the four fiscal
quarter period ending on such calculation date up to $4,250,000 (referred to in Cell
A.2 above), plus

(ii) application business exit and Burlington facility closedown expenses incurred
during the four fiscal quarter period ending on such calculation date up to $300,000
(referred to in Cell B.2 above); plus

(iii) Borrower’s expenses related to the settlement of the OMAX patent litigation
incurred during the four fiscal quarter period ending on such calculation date of
$29,000,000 (referred to in Cell C.2 above); plus

(iv) Borrower’s expenses related to reductions in force and closure of Flow’s Taiwan
manufacturing facility incurred during the four fiscal quarter period ending on such
calculation date up to $1,900,000 (referred to in Cell D.2 above); plus

(v) expenses by Borrower and its Subsidiaries during the applicable period in
connection with any Indemnification Claim up to $1,700,000 (referred to in Cell E.2
above); plus

(vi) the Acquisition Termination Fee Adjustment Amount, if any;

     (C) with respect to the Flow Adjustment Calculation Date referred to in Column 3 above, the
sum of:

(i) Borrower’s cost related to the terminated Acquisition during the four fiscal
quarter period ending on such calculation date up to $4,250,000 (referred to in Cell
A.3 above), plus

(ii) Borrower’s expenses related to reductions in force and closure of Flow’s Taiwan
manufacturing facility incurred during the four fiscal quarter period ending on such
calculation date up to $1,900,000 (referred to in Cell D.3 above); plus

(iii) expenses by Borrower and its Subsidiaries during the applicable period
in connection with any Indemnification Claim up to $1,700,000 (referred to in Cell
E.3 above); plus

10

 

(iv) the Acquisition Termination Fee Adjustment Amount, if any; and

     (D) with respect to the Flow Adjustment Calculation Date referred to in Column 4 above, the
sum of:

(i) Borrower’s cost related to the terminated Acquisition during the four fiscal
quarter period ending on such calculation date up to $250,000 (referred to in Cell
A.4 above), plus

(ii) Borrower’s expenses related to reductions in force and closure of Flow’s Taiwan
manufacturing facility incurred during the four fiscal quarter period ending on such
calculation date up to $1,200,000 (referred to in Cell D.4 above); plus

(iii) expenses by Borrower and its Subsidiaries during the applicable period
in connection with any Indemnification Claim up to $1,700,000 (referred to in Cell
E.4 above); plus

(iv) the Acquisition Termination Fee Adjustment Amount, if any.

11

 

SCHEDULE 7.11

FINANCIAL COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding,
Borrower shall not, nor shall it permit any Domestic Material Subsidiary to, directly or
indirectly:

     1. Consolidated Senior Leverage Ratio. Permit the Consolidated Senior Leverage Ratio,
for any period of four fiscal quarters of the Borrower ending as of the end of the fiscal quarter
of the Borrower set forth in the following table, to be greater than the amount determined pursuant
to the following table:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	As of end of
	As of end of	 	 	 	As of end of	 	As of end of	 	Borrower’s 2nd
	Borrower’s	 	As of end of	 	Borrower’s	 	Borrower’s 1st	 	fiscal
	2nd	 	Borrower’s 3rd	 	4th	 	fiscal	 	quarter 2011 and
	fiscal quarter 2010	 	fiscal quarter 2010	 	fiscal quarter 2010	 	quarter 2011	 	thereafter
	3.35:1
	 	3.50:1	 	3.35:1	 	2.75:1	 	2.50:1

     2. Liquidity: Permit Funded Debt (as defined below) as of the end of any fiscal
quarter of Borrower to be greater than the sum of (a) sixty-five percent (65%) of the consolidated
book value of Borrower’s accounts receivable as of the end of such fiscal quarter plus (b) forty
percent (40%) of the book value of Borrower’s consolidated inventory as of the end of such fiscal
quarter. For purposes of this Section 2, “Funded Debt” shall mean, as of the end of any
fiscal quarter of Borrower, Borrower’s Consolidated Funded Indebtedness minus the OMAX Subordinated
Debt.

     3. Consolidated Fixed Charge Coverage Ratio. Permit the Consolidated Fixed Charge
Coverage Ratio, for any period of four fiscal quarters of the Borrower ending as of the end of the
fiscal quarter of the Borrower set forth in the following table, to be less than the amount
determined pursuant to the following table:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	As of end of
	 	 	 	 	As of end of	 	 	 	Borrower’s 1st
	As of end of	 	As of end of	 	Borrower’s 3rd	 	As of end of	 	fiscal
	Borrower’s 1st	 	Borrower’s 2nd	 	fiscal	 	Borrower’s 4th	 	quarter 2011
	fiscal quarter 2010	 	fiscal quarter 2010	 	quarter 2010	 	fiscal quarter 2010	 	and thereafter
	2.0:1

	 	1.2:1
	 	1.2:1
	 	1.2:1
	 	2.00:1

12

 

EXHIBIT D

FORM OF COMPLIANCE CERTIFICATE

Financial Statement Date:                     ,      

To: Bank of America, N.A., as Agent

Ladies and Gentlemen:

     Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of
June 10, 2009 (as amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Agreement;” the terms defined therein being used herein as therein
defined), among FLOW INTERNATIONAL CORPORATION, a Washington corporation (“Borrower”), the
Lenders from time to time party thereto, and Bank of America, N.A., as Agent, L/C Issuer and Swing
Line Lender.

     The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the
                     of Borrower, and that, as such, he/she is authorized to execute and deliver this
Certificate to Agent on the behalf of Borrower, and that:

[Use following paragraph 1 for fiscal year-end financial statements]

     1. Borrower has delivered the year-end audited financial statements required by Section
6.01(a) of the Agreement for the fiscal year of Borrower ended as of the above date, together
with the report and opinion of an independent certified public accountant required by such section.

[Use following paragraph 1 for fiscal quarter-end financial statements]

     1. Borrower has delivered the unaudited financial statements required by Section
6.01(b) of the Agreement for the fiscal quarter of Borrower ended as of the above date. Such
financial statements fairly present the financial condition, results of operations and cash flows
of Borrower and its Subsidiaries in accordance with GAAP as at such date and for such period,
subject only to normal year-end audit adjustments and the absence of footnotes.

     2. The undersigned has reviewed and is familiar with the terms of the Agreement and has made,
or has caused to be made under his/her supervision, a detailed review of the transactions and
condition (financial or otherwise) of Borrower during the accounting period covered by such
financial statements.

     3. A review of the activities of Borrower during such fiscal period has been made under the
supervision of the undersigned with a view to determining whether during such fiscal period
Borrower performed and observed all its Obligations under the Loan Documents, and

[select one:]

13

 

[to the best knowledge of the undersigned during such fiscal period, Borrower performed and
observed each covenant and condition of the Loan Documents applicable to it, and no Default has
occurred and is continuing.]

—or—

[to the best knowledge of the undersigned during such fiscal period, the following covenants or
conditions have not been performed or observed and the following is a list of each such Default and
its nature and status:]

     4. The representations and warranties of Borrower contained in Article V of the
Agreement, and any representations and warranties of any Loan Party that are contained in any
document furnished at any time under or in connection with the Loan Documents, are true and correct
on and as of the date hereof, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct as of such earlier
date, and except that for purposes of this Compliance Certificate, the representations and
warranties contained in subsections (a) and (b) of Section 5.05 of the Agreement shall be
deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b),
respectively, of Section 6.01 of the Agreement, including the statements in connection with
which this Compliance Certificate is delivered.

     5. The financial covenant analyses and information set forth on Schedules 1 and
2 attached hereto are true and accurate on and as of the date of this Certificate.

     IN
WITNESS WHEREOF, the undersigned has executed this Certificate as of
                    ,
20     .

	 	 	 	 	 
	 	FLOW INTERNATIONAL CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

For the Quarter/Year ended                                                 (“Statement Date”)

14

 

SCHEDULE 1

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.9 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 — Liquidity Test.	 	 	 	 
	 	 	 	 	 	A.	 	 	Book Value of consolidated inventory x .40:
	 	$	                    	 
	 	 	 	 	 	B.	 	 	Book Value of consolidated accounts receivable x .65:
	 	$	                    	 
	 	 	 	 	 	C.	 	 	Consolidated Funded Indebtedness:
	 	$	                    	 
	 	 	 	 	 	D.	 	 	OMAX Subordinated Debt:
	 	$	                    	 
	 	 	 	 	 (Line II.A + Line II.B) must be greater than (Line
II. C – Line II.D)
	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	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.	 	 	Maintenance Capital Expenditures:
	 	$	                    	 
	 	 	 	 	 	D.	 	 	Consolidated Interest Charges (except (i)
non-cash payment-in-kind or non-cash deferred interest
pursuant to (aa) OMAX Subordinated Debt and (bb) any preferred
stock sold by Borrower in connection with the satisfaction of
the conditions set forth in the first paragraph of Section
	 	 	 	 

15

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	3 of the First Amendment and (ii) financing costs deferred
prior to the Closing Date) for Subject Period:
	 	$	                    	 
	 	 	 	 	 	E.	 	 	Current portion of other long term
debt1:
	 	$	                    	 
	 	 	 	 	 	F.	 	 	Consolidated Fixed Charge Coverage Ratio
((Line III.A.9 – Line III.B – Line III.C)  ̧ (Line III.D
+ Line III.E) :
	 	$	                    	 
	 	 	 	 	 Minimum required:
	 	See Schedule 7.11

 

			
	1	 	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.

16

 

For the
Quarter/Year ended
                           
              
                        (“Statement Date”)

SCHEDULE 2

to the Compliance Certificate

($ in 000’s)

Consolidated Adjusted EBITDA

(in accordance with the definition of Consolidated Adjusted EBITDA

as set forth in the Agreement)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Consolidated Adjusted	 	Quarter	 	 	Quarter	 	 	Quarter	 	 	Quarter	 	 	Twelve Months	 
	EBITDA	 	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
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

17

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