Document:

Prepared by MERRILL CORPORATION

	

   

  

 

Receivables

Sale Agreement

 

Dated as

of September 28, 2001

 

among

 

Albany

International Receivables Corporation,

as the

Seller,

 

Albany

International Corp.,

as the

Initial Collection Agent,

 

ABN AMRO

Bank N.V.,

as the

Agent,

 

the

Committed Purchasers

from time

to time party hereto,

 

and

 

Amsterdam

Funding Corporation

 

	

   

  

 

Table of Contents

 

	 
	

  Article I

  	

  Purchases from

  Seller and Settlements

  
	 
	

   

  	

   

  
	 
	

  Section 1.1.

  	

  Sales

  
	 
	

  Section 1.2.

  	

  Interim Liquidations.

  
	 
	

  Section 1.3.

  	

  Selection

  of Discount Rates and Tranche Periods.

  
	 
	

  Section 1.4.

  	

  Fees and Other Costs

  and Expenses

  
	 
	

  Section 1.5.

  	

  Maintenance

  of Sold Interest; Deemed Collection

  
	 
	

  Section 1.6.

  	

  Reduction in Commitments

  
	 
	

  Section 1.7.

  	

  Optional Repurchases

  
	 
	

  Section 1.8.

  	

  Security Interest

  
	 
	

   

  	

   

  
	 
	

  Article II

  	

  Sales to and

  from Amsterdam; Allocations

  
	 
	

   

  	

   

  
	 
	

  Section 2.1.

  	

  Required Purchases

  from Amsterdam.

  
	 
	

  Section 2.2.

  	

  Purchases by Amsterdam.

  
	 
	

  Section 2.3.

  	

  Allocations and

  Distributions

  
	 
	

   

  	

   

  
	 
	

  Article III

  	

  Administration and

  Collections

  
	 
	

   

  	

   

  
	 
	

  Section 3.1.

  	

  Appointment of

  Collection Agent

  
	 
	

  Section 3.2.

  	

  Duties of Collection Agent

  
	 
	

  Section 3.3.

  	

  Reports

  
	 
	

  Section 3.4.

  	

  Lock-Box Arrangements

  
	 
	

  Section 3.5.

  	

  Enforcement Rights

  
	 
	

  Section 3.6.

  	

  Collection Agent Fee

  
	 
	

  Section 3.7.

  	

  Responsibilities of the

  Seller

  
	 
	

  Section 3.8.

  	

  Actions by Seller

  
	 
	

  Section 3.9.

  	

  Indemnities by the

  Collection Agent.

  
	 
	

  Section 3.10.

  	

  Currency Conversion.

  
	 
	

   

  	

   

  
	 
	

  Article IV

  	

  Representations and

  Warranties

  
	 
	

   

  	

   

  
	 
	

  Section 4.1.

  	

  Representations and

  Warranties

  
	 
	

   

  	

   

  
	 
	

  Article V

  	

  Covenants

  
	 
	

   

  	

   

  
	 
	

  Section 5.1.

  	

  Covenants of the Seller

  
	 
	

   

  	

   

  
	 
	

  Article VI

  	

  Indemnification

  
	 
	

   

  	

   

  
	 
	

  Section 6.1.

  	

  Indemnities by the Seller

  
	 
	

  Section 6.2.

  	

  Increased Cost and

  Reduced Return

  
	 
	

  Section 6.3.

  	

  Other Costs and Expenses

  
	 
	

  Section 6.4.

  	

  Withholding Taxes

  
	 
	

  Section 6.5.

  	

  Payments and Allocations

  
	

   

  	

   

  
			

 

 

	

  Article VII

  	

  Conditions Precedent

  
	

   

  	

   

  
	

  Section 7.1.

  	

  Conditions to Closing

  
	

  Section 7.2.

  	

  Conditions to Each Purchase

  
	

   

  	

   

  
	

  Article VIII

  	

  The Agent

  
	

   

  	

   

  
	

  Section 8.1.

  	

  Appointment and

  Authorization

  
	

  Section 8.2.

  	

  Delegation of Duties

  
	

  Section 8.3.

  	

  Exculpatory Provisions

  
	

  Section 8.4.

  	

  Reliance by Agent

  
	

  Section 8.5.

  	

  Assumed Payments

  
	

  Section 8.6.

  	

  Notice of Termination

  Events

  
	

  Section 8.7.

  	

  Non-Reliance

  on Agent and Other Purchasers

  
	

  Section 8.8.

  	

  Agent and Affiliates

  
	

  Section 8.9.

  	

  Indemnification

  
	

  Section 8.10.

  	

  Successor Agent

  
	

   

  	

   

  
	

  Article IX

  	

  Miscellaneous

  
	

   

  	

   

  
	

  Section 9.1.

  	

  Termination

  
	

  Section 9.2.

  	

  Notices

  
	

  Section 9.3.

  	

  Payments and Computations

  
	

  Section 9.4.

  	

  Sharing of Recoveries

  
	

  Section 9.5.

  	

  Right of Setoff

  
	

  Section 9.6.

  	

  Amendments

  
	

  Section 9.7.

  	

  Waivers

  
	

  Section 9.8.

  	

  Successors and Assigns;

  Participations; Assignments

  
	

  Section 9.9.

  	

  Intended Tax

  Characterization

  
	

  Section 9.10.

  	

  Confidentiality

  
	

  Section 9.11.

  	

  Agreement Not to Petition

  
	

  Section 9.12.

  	

  Excess Funds

  
	

  Section 9.13.

  	

  No Recourse

  
	

  Section 9.14.

  	

  Headings; Counterparts

  
	

  Section 9.15.

  	

  Cumulative Rights

  and Severability

  
	

  Section 9.16.

  	

  Governing

  Law; Submission to Jurisdiction

  
	

  Section 9.17.

  	

  Waiver

  of Trial by Jury

  
	

  Section 9.18.

  	

  Entire Agreement

  
	

  Section 9.19.

  	

  Appointment for

  Service of Process

  
	

  Section 9.20.

  	

  Payments in Relevant

  Currency

  
	

   

  	

   

  

 

 

	

  schedules

  	

  Description

  
	

   

  	

   

  
	

  Schedule I

  	

  Definitions

  
	

  Schedule II

  	

  Committed

  Purchasers and Commitments of Committed Purchasers

  
	

   

  	

   

  
	

  Exhibits

  	

  Description

  
	

   

  	

   

  
	

  Exhibit A

  	

  Form of

  Incremental Purchase Request

  
	

  Exhibit B

  	

  Form of

  Notification of Assignment to Amsterdam from the Committed Purchasers

  
	

  Exhibit C

  	

  Form of Periodic Report

  
	

  Exhibit D

  	

  Addresses

  and Names of Seller and Originators

  
	

  Exhibit E

  	

  Lock-Boxes and Lock-Box

  Banks

  
	

  Exhibit F

  	

  Form of Lock-Box Letter

  
	

  Exhibit G

  	

  Compliance Certificate

  
	

  Exhibit H

  	

  Credit and Collection

  Policy

  
	

  Exhibit I

  	

  Exchange Rates

  
	

  Exhibit J

  	

  Bankrupt Obligors

  

 

Receivables

Sale Agreement

 

Receivables Sale

Agreement, dated as of

September 28, 2001, among Albany

International Receivables Corporation, a Cayman Islands company, as

Seller (the “Seller”),

Albany International Corp., a

Delaware corporation, as initial Collection Agent (the “Initial Collection Agent,”

and, together with any successor thereto, the “Collection Agent”), ABN

AMRO Bank N.V., as agent for the Purchasers (the “Agent”), the committed

purchasers party hereto (the “Committed Purchasers”) and Amsterdam

Funding Corporation (“Amsterdam”).  Certain capitalized terms used herein, and certain rules of construction,

are defined in Schedule I.  The

Committed Purchasers and the Commitments of the Committed Purchasers are listed

on Schedule II.

 

The

parties hereto agree as follows:

 

Article I

 

Purchases

from Seller and Settlements

 

Section 1.1.           Sales.

 

(a)           The Sold

Interest.  Subject to the

terms and conditions hereof, the Seller may, from time to time before the

Liquidity Termination Date, sell to Amsterdam or, only if Amsterdam declines to

make the applicable purchase, ratably to the Committed Purchasers (who hereby

agree, subject to the terms and conditions hereof, in such event to make such

purchase) an undivided percentage ownership interest in the Receivables, the

Related Security and all related Collections. 

Any such purchase (a “Purchase”) shall be made by each relevant

Purchaser remitting funds to the Seller, through the Agent, pursuant to

Section 1.1(c) or by the Collection Agent remitting Collections to the

Seller pursuant to Section 1.1(d). 

The aggregate percentage ownership interest so acquired by a Purchaser

in the Receivables, the Related Security and related Collections (its “Purchase

Interest”) shall equal at any time the sum of the following

percentages:

 

	

  I

  	

   

  	

  +

  	

   

  	

  PRP

  
	

  ER

  	

   

  	

   

  	

   

  	

   

  

 

where:

 

I               =          the

outstanding Investment of such Purchaser at such time;

 

ER           =          the

Eligible Receivables Balance at such time; and

 

PRP         =          the

Purchaser Reserve Percentage at such time.

 

Except during a Liquidation Period for a

Purchaser, such Purchaser’s Purchase Interest will change whenever its

Investment, its Purchaser Reserve Percentage or the Eligible Receivables

Balance changes.  During a Liquidation

Period for a Purchaser its Purchase Interest shall remain constant at the

percentage in effect as of the day immediately preceding the commencement of

the relevant Liquidation Period, except for redeterminations to reflect

Investment acquired from or transferred to another Purchaser under the Transfer

Agreement.  The sum of all Purchasers’

Purchase Interests at any time is referred to herein as the “Sold

Interest”, which at any time is the aggregate percentage ownership

interest then held by the Purchasers in the Receivables, the Related Security

and Collections.

 

(b)           Amsterdam Purchase Option and Other Purchasers’ Commitments. 

Subject to Section 1.1(d) concerning Reinvestment Purchases, at no

time will Amsterdam have any obligation to make a Purchase.  Each purchaser listed on Schedule II

hereto (together, the “Committed Purchasers” and each, a “Committed

Purchaser”) severally hereby agrees, subject to Section 7.2 and

the other terms and conditions hereof (including, in the case of an Incremental

Purchase (as defined below), that Amsterdam has refused to make a requested

Purchase), to make Purchases before the Liquidity Termination Date, based on

its Ratable Share of each Purchase, to the extent its Investment would not

thereby exceed its Commitment, the Aggregate Investment would not thereby

exceed the Purchase Limit, and the Matured Aggregate Investment would not

thereby exceed the Aggregate Commitments. 

Each Purchaser’s first Purchase and each additional Purchase by such

Purchaser not made from Collections pursuant to Section 1.1(d) is referred

to herein as an “Incremental Purchase.” 

Each Purchase made by a Purchaser with the proceeds of Collections in

which it has a Purchase Interest, which does not increase the outstanding

Investment of such Purchaser, is referred to herein as a “Reinvestment Purchase.”

 

(c)           Incremental

Purchases.  In order to

request an Incremental Purchase from a Purchaser, the Seller must provide to

the Agent an irrevocable written request substantially in the form of

Exhibit A, by (i) 10:00 a.m. (Chicago time) two Business Days

before the requested date (the “Purchase Date”) of such Purchase, in the

case of each Purchase by Amsterdam, (ii) 10:00 a.m. (Chicago time)

three Business Days before the Purchase Date in the case of each Purchase by

the Committed Purchasers that is to accrue Discount at the Eurodollar Rate and

(iii) 10:00 a.m. (Chicago time) on the Purchase Date in the case of each

Purchase by the Committed Purchasers that is to accrue Discount at the Prime

Rate, or, in each of the foregoing cases, such later time or day as Amsterdam

shall agree.  Each such notice shall

specify the requested Purchase Date (which must be a Business Day) and the

requested amount (the “Purchase Amount”) of such Purchase, which

must be in a minimum amount of $500,000 (or, if less, an amount equal to the

Maximum Incremental Purchase Amount). 

An Incremental Purchase may only be requested from Amsterdam unless

Amsterdam, in its sole discretion, determines not to make such Incremental

Purchase, in which case the Seller may request such Incremental Purchase from

the Committed Purchasers.  The Agent

shall promptly notify the contents of any such request to each Purchaser from which

the Purchase is requested.  If Amsterdam

determines, in its sole discretion, to make all or any portion of the requested

Purchase, Amsterdam shall transfer to the Agent’s Account the Purchase Amount

(or portion thereof) on the requested Purchase Date.  If Amsterdam determines, in its sole discretion, not to make all

or any portion of a requested Purchase and the Seller requests the Incremental

Purchase from the Committed Purchasers subject to Section 7.2 and the

other terms and conditions hereof, each Committed Purchaser shall transfer its

Ratable Share of that portion of the requested Purchase Amount not funded by

Amsterdam into the Agent’s Account by no later than 12:00 noon (Chicago time)

on the Purchase Date (which, in the case of a Purchase that is to accrue

Discount at the Eurodollar Rate, in no event will be earlier than three

Business Days after such request is made to the Committed Purchasers).  The Agent shall transfer to the Seller

Account the proceeds of any Incremental Purchase delivered into the Agent’s

Account.

 

(d)           Reinvestment

Purchases.  Unless Amsterdam

has provided to the Agent, the Seller, and the Collection Agent a notice (which

notice has not been revoked by Amsterdam) that it no longer wishes to make

Reinvestment Purchases (in which case Amsterdam’s Reinvestment Purchases, but

not those of the Committed Purchasers, shall cease), on each day before the

Liquidity Termination Date that any Collections are received by the Collection

Agent and no Interim Liquidation is in effect, a Purchaser’s Purchase Interest

in such Collections shall automatically be used to make a Reinvestment Purchase

by such Purchaser.  Amsterdam may revoke

any notice provided under the first sentence of this Section 1.1(d) by

notifying the Agent, the Seller, and the Collection Agent that it will make

Reinvestment Purchases.

 

Section 1.2.           Interim

Liquidations.  (a) Optional. 

The Seller may at any time direct that Reinvestment Purchases cease and

that an Interim Liquidation commence for all Purchasers by giving the Agent and

the Collection Agent at least three Business Days’ prior written notice

specifying the date on which the Interim Liquidation shall commence and, if

desired, when such Interim Liquidation shall cease (identified as a specific

date prior to the Liquidity Termination Date or as when the Aggregate

Investment is reduced to a specified amount). 

If the Seller does not so specify the date on which an Interim

Liquidation shall cease, it may cause such Interim Liquidation to cease at any

time before the Liquidity Termination Date, subject to Section 1.2(b)

below, by giving the Agent and the Collection Agent at least three Business

Days' prior written notice before the date on which it desires such Interim

Liquidation to cease.

 

(b)           Mandatory.  If at any time before the Liquidity

Termination Date any condition in Section 7.2 is not fulfilled,

Reinvestment Purchases shall cease and an Interim Liquidation shall commence,

which shall cease only upon the Seller confirming to the Agent that the

conditions in Section 7.2 are fulfilled.

 

Section 1.3.           Selection of Discount Rates and Tranche

Periods. (a) Amsterdam.  Amsterdam's Investment will accrue Funding

Charges for each day on which it is outstanding.  On each Settlement Date the Seller shall pay to the Agent (for

the benefit of Amsterdam) an aggregate amount equal to all accrued and unpaid

Funding Charges in respect of such Investment for the immediately preceding

Discount Period. The Agent shall allocate the Investment of Amsterdam to

Tranche Periods in its sole discretion.

 

(b)           Committed

Purchasers.  All Investment

of the Committed Purchasers shall be allocated to one or more Tranches

reflecting the Discount Rates at which such Investment accrues Discount and the

Tranche Periods for which such Discount Rates apply.  In each request for an Incremental Purchase from the Committed

Purchasers and three Business Days before the expiration of any Tranche Period

applicable to any Committed Purchaser’s Investment, the Seller may direct

(subject to Section 1.3(c)) the Tranche Period(s) to be applicable to such

Investment and the Discount Rate(s) applicable thereto.  All Investment of the Committed Purchasers

may accrue Discount at either the Eurodollar Rate or the Prime Rate, in all

cases as established for each Tranche Period applicable to such

Investment.  Any Investment of the

Committed Purchasers not allocated to a Tranche Period shall be a Prime

Tranche.  During the pendency of a

Termination Event, the Agent may reallocate any outstanding Investment of the

Committed Purchasers to a Prime Tranche. 

All Discount accrued on the Investment of the Committed Purchasers

during a Tranche Period shall be payable by the Seller on the last day of such

Tranche Period or, for a Eurodollar Tranche with a Tranche Period of more than

three months, three months after the commencement, and on the last day, of such

Tranche Period.  If, by the time

required by this Section 1.3(b), the Seller fails to select a Discount

Rate or Tranche Period for any Investment of the Committed Purchasers, such

amount of Investment shall automatically accrue Discount at the Prime Rate for

a three Business Day Tranche Period. 

Any Investment purchased from Amsterdam pursuant to the Transfer

Agreement shall accrue interest at the Prime Rate and have an initial Tranche

Period of three Business Days.

 

(c)           If

the Agent or any Committed Purchaser reasonably determines (i) that maintenance

of any Eurodollar Tranche would violate any applicable law or regulation, (ii)

that deposits of a type and maturity appropriate to match fund any of such

Purchaser’s Eurodollar Tranches are not available or (iii) that the maintenance

of any Eurodollar Tranche will not adequately and fairly reflect the cost of

such Purchaser of funding Eurodollar Tranches, then the Agent, upon the direction

of such Purchaser, shall suspend the availability of future Eurodollar Tranches

until such time as the Agent or applicable Committed Purchaser provides notice

that the circumstances giving rise to such suspension no longer exist, and, if

required by any applicable law or regulation, terminate any outstanding,

Eurodollar Tranche so affected.  All

Investment allocated to any such terminated Eurodollar Tranche shall be

reallocated to a Prime Tranche.

 

Section 1.4.           Fees

and Other Costs and Expenses.  (a) The Seller shall pay to the Agent

(i) for the ratable benefit of the Committed Purchasers, such amounts as agreed

to with the Committed Purchasers and the Agent in the Fee Letter.

 

(b)           If (i) the

amount of Amsterdam’s Investment is reduced (other than as a result of a Put)

on any date other than the last day of a CP Tranche, (ii) the amount of

Investment allocated to any LIBOR Tranche is reduced on any day other than the

last day of its Tranche Period or (iii) if a requested Incremental Purchase at

the Eurodollar Rate does not take place on its scheduled Purchase Date (other

than due to acts or omissions of the applicable Purchaser or Agent), the Seller

shall pay the Early Payment Fee to each Purchaser that had its Investment so

reduced or scheduled Purchase not made.

 

(c)           Investment,

Discount and Funding Charges shall not be recourse obligations of the Seller

and shall be payable solely from Collections and from amounts payable under

Sections 1.5, 1.7 and 6.1 (to the extent amounts paid under

Section 6.1 indemnify against reductions in or non–payment of

Receivables).  The Seller shall pay, as

a full recourse obligation, all other amounts payable hereunder.

 

Section 1.5.           Maintenance of Sold Interest; Deemed

Collection.  (a) General. 

If at any time before the Liquidity Termination Date the Eligible

Receivables Balance is less than the sum of the Aggregate Investment (or, if a

Termination Event exists, the Matured Aggregate Investment) plus the Aggregate

Reserve, the Seller shall pay to the Agent an amount equal to such deficiency

for application to reduce the Investments of the Purchasers ratably in

accordance with the principal amount of their respective Investments, applied first

to Prime Tranches and second to the other Tranches with the

shortest remaining maturities unless otherwise specified by the Seller.  Any amount so applied to reduce Amsterdam’s

Investment shall be deposited in the Special Transaction Subaccount.

 

(b)           Deemed

Collections.  If on any day

the Outstanding Balance of a Receivable is reduced or cancelled as a result of

any defective or rejected goods or services, any cash discount or adjustment

(including any adjustment resulting from the application of any special refund

or other discounts or any reconciliation), any setoff or credit (whether such

claim or credit arises out of the same, a related, or an unrelated transaction)

or other reason not arising from the financial inability of the Obligor to pay

undisputed indebtedness, the Seller shall be deemed to have received on such

day a Collection on such Receivable in the amount of such reduction or

cancellation.  If on any day any

representation, warranty, covenant or other agreement of the Seller related to

a Receivable set forth in Section 4.1(e) or 4.1(k) hereof is not true or

is not satisfied, the Seller shall be deemed to have received on such day a

Collection in the amount of the Outstanding Balance of such Receivable.  All such Collections deemed received by the

Seller under this Section 1.5(b) shall be remitted by the Seller to the Collection

Agent in accordance with Section 5.1(i).

 

(c)           Adjustment

to Sold Interest.  At any

time before the Liquidity Termination Date that the Seller is deemed to have

received any Collection under Section 1.5(b) (“Deemed Collections”) that

derives from a Receivable that is otherwise reported as an Eligible Receivable,

so long as no Liquidation Period then exists, the Seller may satisfy its

obligation to deliver such amount to the Collection Agent by instead notifying

the Agent that the Sold Interest should be recalculated by decreasing the

Eligible Receivables Balance by the amount of such Deemed Collections, so long

as such adjustment does not cause the Sold Interest to exceed 100%.

 

(d)           Payment

Assumption.  Unless an

Obligor otherwise specifies or another application is required by contract or

law, any payment received by the Seller from any Obligor shall be applied as a

Collection of Receivables of such Obligor (starting with the oldest such

Receivable) and remitted to the Collection Agent as such.

 

Section 1.6.           Reduction

in Commitments.  The Seller may, upon at least five Business

Days’ notice to the Agent, reduce the Aggregate Commitment in increments of

$1,000,000, so long as the Aggregate Commitment as so reduced is no less than

the Matured Aggregate Investment.  Each

such reduction in the Aggregate Commitment shall reduce the Commitment of each

Committed Purchaser in accordance with its Ratable Share and shall reduce the

Purchase Limit so that the Aggregate Commitment remains at least 102% of the

Purchase Limit and the Purchase Limit is no less than the outstanding Aggregate

Investment.

 

Section 1.7.           Optional

Repurchases.  At any time that the Aggregate Investment is

less than 10% of the Aggregate Commitment in effect on the date hereof, the

Seller may, upon at least five Business Days’ notice to the Agent, repurchase

the entire Sold Interest from the Purchasers at a price equal to the

outstanding Matured Aggregate Investment and all other amounts then owed

hereunder.  No Early Payment Fee shall

be payable in connection with a repurchase made in accordance with the terms of

this Section.

 

Section 1.8.           Security

Interest.  (a) The Seller hereby grants to the

Agent, for its own benefit and for the ratable benefit of the Purchasers, a

security interest in all Receivables, Related Security, Collections and

Lock-Box Accounts to secure the payment of all amounts other than Investment

owing hereunder and (to the extent of the Sold Interest) to secure the

repayment of all Investment.  The

Seller and Collection Agent shall hold in trust for the benefit of the Persons

entitled thereto any Collections received pending their application pursuant to

Section 1.1(c), Section 2.3 or Article III hereof.  After the occurrence of a Termination Event,

the Seller and Collection Agent shall not, without the prior written consent of

the Instructing Group, distribute any Collections to any Person other than the

Agent and the Purchasers (and to the Collection Agent, in payment of the

Collection Agent Fee to the extent permitted hereto) (whether as payment on a

Note or otherwise) until all amounts owed under the Transaction Documents the

Agent and the Purchasers shall have been indefeasibly paid in full.

 

(b)           The

Seller hereby assigns and otherwise transfers to the Agent (for the benefit of

the Agent, each Purchaser and any other Person to whom any amount is owed

hereunder), all of the Seller’s right, title and interest in, to and under the

Purchase Agreement and the Limited Guaranty as security for fulfillment of

Seller’s obligations under the Transaction Documents.  The Seller shall execute, file and record all financing

statements, continuation statements and other documents required to perfect or

protect such assignment.  This

assignment includes (a) all monies due and to become due to the Seller

from the Originators or the Parent under or in connection with the Purchase

Agreement and the Limited Guaranty (including fees, expenses, costs,

indemnities and damages for the breach of any obligation or representation

related to such agreement) and (b) all rights, remedies, powers,

privileges and claims of the Seller against the Originators or the Parent under

or in connection with the Purchase Agreement and the Limited Guaranty.  All provisions of the Purchase Agreement and

the Limited Guaranty shall inure to the benefit of, and may be relied upon by,

the Agent, each Purchaser and each such other Person.  At any time that a Termination Event has occurred and is

continuing, the Agent shall have the sole right to enforce the Seller’s rights and

remedies under the Purchase Agreement and the Limited Guaranty to the same

extent as the Seller could absent this assignment, but without any obligation

on the part of the Agent, any Purchaser or any other such Person to perform any

of the obligations of the Seller under the Purchase Agreement (or the

promissory note executed thereunder) or the Limited Guaranty.  All amounts distributed to the Seller under

the Purchase Agreement from Receivables sold to the Seller thereunder shall

constitute Collections hereunder and shall be applied in accordance herewith.

 

(c)           This

agreement shall be a security agreement for purposes of the UCC.  Upon the occurrence of a Termination Event,

the Agent shall have all rights and remedies provided under the UCC as in effect

in all applicable jurisdictions.

 

Article II

 

Sales

to and from Amsterdam; Allocations

 

Section 2.1.           Required Purchases from Amsterdam.

(a) Amsterdam may, at any time, and on the earlier of the Amsterdam Termination

Date and ten Business Days following the Agent and Amsterdam learning of a

continuing Termination Event, Amsterdam shall, sell to the Committed Purchasers

pursuant to the Transfer Agreement any percentage designated by Amsterdam of

Amsterdam’s Investment and its related Amsterdam Settlement (each, a “Put”).

 

(b)           Any

portion of Amsterdam’s Investment and related Amsterdam Settlement purchased by

a Committed Purchaser shall be considered part of such Purchaser’s Investment

and related Amsterdam Settlement from the date of the relevant Put.  Immediately upon any purchase by the

Committed Purchasers of any portion of Amsterdam’s Investment on or after the

occurrence of a Termination Event, the Seller shall pay to the Agent (for the

ratable benefit of such Purchasers) an amount equal to the sum of (i) the

Assigned Amsterdam Settlement and (ii) all unpaid Discount owed to Amsterdam

(whether or not then due) to the end of each applicable Tranche Period to which

any Investment being Put has been allocated, (iii) all accrued but unpaid fees

(whether or not then due) payable to Amsterdam in connection herewith at the

time of such purchase and (iv) all accrued and unpaid costs, expenses and

indemnities due to Amsterdam from the Seller in connection herewith.

 

(c)           The

proceeds from each Put received by Amsterdam (other than amounts described in

clauses (iii) and (iv) of the last sentence of Section 2.1(b)), shall

be transferred into the Special Transaction Subaccount and used solely to pay

that portion of the outstanding commercial paper of Amsterdam issued to fund or

maintain the Investment of Amsterdam so transferred.  Until used to pay commercial paper, all proceeds of any Put

pursuant to this Section shall be invested in Permitted Investments.  All earnings on such Permitted Investments

shall be promptly remitted to the Committed Purchasers (ratably, in accordance

with their Commitments) unless the Seller shall have paid the amounts described

in the second sentence of Section 2.1(b), in which case such amounts shall

be remitted to the Seller.

 

Section 2.2.           Purchases

by Amsterdam.  Amsterdam may at any time deliver to the

Agent and each Committed Purchaser a notification of assignment in

substantially the form of Exhibit B. 

If Amsterdam delivers such notice, each Committed Purchaser shall sell

to Amsterdam and Amsterdam shall purchase in full from each Committed

Purchaser, the Investment of the Committed Purchasers on the last day of the

relevant Tranche Periods, at a purchase price equal to such Investment plus

accrued and unpaid Discount thereon. Any sale from any Committed Purchaser to

Amsterdam pursuant to this Section 2.2 shall be without recourse,

representation or warranty except for the representation and warranty that the

Investment sold by such Committed Purchaser is free and clear of any Adverse

Claim created or granted by such Committed Purchaser and that such Purchaser

has not suffered a Bankruptcy Event.

 

Section 2.3.           Allocations

and Distributions.

 

(a)           Amsterdam

Termination and Non-Reinvestment Periods.  Before the Liquidity Termination Date (unless an Interim

Liquidation is in effect), on each day during a period that Amsterdam has an

outstanding Investment and is not making Reinvestment Purchases (as established

under Section 1.1(d)) and at all times on and after the Amsterdam

Termination Date, the Collection Agent (i) shall set aside and hold in

trust solely for the benefit of Amsterdam (or deliver to the Agent, if so

instructed pursuant to Section 3.2(a)) Amsterdam’s Purchase Interest in

all Collections received on such day and (ii) shall distribute on the last

day of each CP Tranche Period to the Agent (for the benefit of Amsterdam) the

amounts so set aside up to the amount of Amsterdam’s Investment allocated to

such Tranche Period and, to the extent not already paid in full, all Discount

thereon and all other amounts then due from the Seller in connection with such

Investment and Tranche Period.  If any

part of the Sold Interest in any Collections is applied to pay any amounts that

are recourse obligations of the Seller pursuant to Section 1.4(c) and

after giving effect to such application the Sold Interest is greater than 100%,

the Seller shall pay, as a recourse obligation for distribution as part of the

Sold Interest in Collections, to the Collection Agent the amount so applied to

the extent necessary so that after giving effect to such payment the Sold

Interest is no greater than 100%.

 

(b)           Liquidity

Termination Date and Interim Liquidations. 

On each day during any Interim Liquidation and on each day on

and after the Liquidity Termination Date, the Collection Agent shall set aside

and hold in trust solely for the account of the Agent, for the benefit of the

Agent and the Purchasers, (or deliver to the Agent, if so instructed pursuant

to Section 3.2(a)) the Sold Interest in all Collections received on such

day and such Collections shall be allocated as follows:

 

(i)            first, to the Purchasers

(ratably, based on the Matured Value of their respective Investments)

until all Investment of, Funding Charges with respect to Amsterdam and Discount

with respect to the Committed Purchasers, as applicable, due but not already

paid to, Amsterdam and the Committed Purchasers have been paid in full;

 

(ii)           second, to the Purchasers until all other

amounts owed to the Purchasers have been paid in full;

 

(iii)          third, to the Agent until all amounts owed

to the Agent have been paid in full;

 

(iv)          fourth, to any other Person (other than

the Seller, the Collection Agent or an Originator) to whom any amounts are owed

under the Transaction Documents until all such amounts have been paid in full;

and

 

(v)           fifth, to the Collection Agent until all

amounts owed to the Collection Agent under the Agreement have been paid in

full; and

 

(vi)          sixth, to the Seller.

 

On the last day of each Tranche Period (unless

otherwise instructed by the Agent pursuant to Section 3.2(a)), the

Collection Agent shall deposit into the Agent’s Account, from such set aside

Collections, all amounts allocated to such Tranche Period and all Tranche

Periods that ended before such date that are due in accordance with the

priorities in clauses (i)-(ii) above. 

No distributions shall be made to pay amounts under clauses (iii) -

(vi) until sufficient Collections have been set aside to pay all amounts

described in clauses (i) and (ii) that may become payable for all outstanding

Tranche Periods.  All distributions by

the Agent shall be made ratably within each priority level in accordance with

the respective amounts then due each Person included in such level unless

otherwise agreed by the Agent and all Purchasers.  If any part of the Sold Interest in any Collections is applied to

pay any amounts payable hereunder that are recourse obligations of the Seller

pursuant to Section 1.4(c) and after giving effect to such application the

Sold Interest is greater than 100%, the Seller shall pay, as a recourse

obligation for distribution in respect of each applicable Purchaser's

Investment as part of the Sold Interest in Collections, to the Collection Agent

the amount so applied to the extent necessary so that after giving effect to

such payment the Sold Interest is no greater than 100%.

 

Article III

 

Administration and Collections

 

Section 3.1.           Appointment

of Collection Agent.

 (a) The servicing,

administering and collecting of the Receivables shall be conducted exclusively

by a Person (the “Collection Agent”) designated to so act on behalf of the

Purchasers under this Article III.  As

the Initial Collection Agent, the Parent is hereby designated as, and agrees to

perform the duties and obligations of, the Collection Agent.  The Initial Collection Agent acknowledges

that the Agent and each Purchaser have relied on the Initial Collection Agent’s

agreement to act as Collection Agent (and the agreement of any of the

sub-collection agents to so act) in making the decision to execute and deliver

this Agreement and agrees that it will not voluntarily resign as Collection

Agent nor permit any sub-collection agent to voluntarily resign as a

sub-collection agent.  At any time after

(and only after) the occurrence of a Collection Agent Replacement Event, the

Agent may designate a new Collection Agent to succeed the Parent (or any

successor Collection Agent).  Any

replacement Collection Agent may not be a direct or indirect competitor of any

Seller Entity and shall agree to be bound by a confidentiality agreement

substantively identical to that set forth in Section 9.10.

 

(b)           The

Initial Collection Agentmay delegate its duties and obligations as

Collection Agent to anAffiliate of the Initial Collection Agent

(acting as a sub-collection agent). 

Notwithstanding such delegation, the Initial Collection Agent shall

remain primarily liable for the performance of the duties and obligations so

delegated, and the Agent and each Purchaser shall have the right to look solely

to the Initial Collection Agentfor such performance.  The Agent may at any time after (and only

after) the occurrence of a Collection Agent Replacement Event remove or replace

any sub-collection agent.

 

(c)           If

replaced as provided herein, the Collection Agent agrees it will terminate, and

will cause each existing sub-collection agent to terminate, its collection

activities in a manner reasonably requested by the Agent to facilitate the

transition to a new Collection Agent. 

The Collection Agent shall reasonably cooperate with and assist any new

Collection Agent (including providing reasonable access to, and transferring,

all Records and allowing (to the extent permitted by applicable law and

contract) the new Collection Agent to use all licenses, hardware or software

necessary or desirable to collect the Receivables).  The Initial Collection Agentirrevocably agrees reasonably to act (if

requested to do so) as the data-processing agent for any new Collection Agent

in substantially the same manner as the Initial Collection Agent conducted

such data-processing functions while it acted as the Collection Agent.

 

Section 3.2.           Duties

of Collection Agent.  (a) The Collection Agent shall take, or cause

to be taken, all action necessary or advisable to collect each Receivable in

accordance (in all material respects) with this Agreement, the Credit and

Collection Policy and all applicable laws, rules and regulations using the

skill and attention the Collection Agent exercises in collecting other

receivables or obligations owed solely to it. 

The Collection Agent shall, in accordance herewith, separately account

for all Collections to which a Purchaser is entitled and pay from such

Collections all Funding Charges and Discount when due.  If so instructed by the Agent, after the

occurrence of a Collection Agent Replacement Event, the Collection Agent shall

transfer to the Agent the amount of Collections to which the Agent and the

Purchasers are entitled by the Business Day following receipt.  Each party hereto exclusively hereby

appoints the Collection Agent to enforce such Person’s rights and interests in

the Receivables, but (notwithstanding any other provision in any Transaction

Document) the Agent shall at all times after the occurrence of a Collection

Agent Replacement Event have the sole right to direct the Collection Agent to

commence or settle any legal action to enforce collection of any Receivable.

 

(b)           If

no Termination Event exists and the Collection Agent determines that such

action is appropriate, the Collection Agent may, in accordance with the Credit

and Collection Policy, extend the maturity of any Receivable (but no such

extension shall be for a period of more than thirty days) or adjust the

Outstanding Balance of any Receivable in respect of any defective or rejected

goods, any goods not timely delivered, or any good which do not meet design or

performance specifications.  Any such

extension or adjustment shall not alter the status of a Receivable as a

Defaulted Receivable or Delinquent Receivable or limit any rights of the Agent

or the Purchasers hereunder.  If a

Termination Event exists, the Collection Agent may make such extensions or

adjustments only with the prior consent of the Instructing Group.

 

(c)           The

Collection Agent shall turn over to the Seller (i) any percentage of Collections

in excess of the Sold Interest, less all reasonable costs and expenses of the

Collection Agent for servicing, collecting and administering the Receivables

and (ii) subject to Section 1.5(d), the collections and records for

any indebtedness owed to the Seller that is not a Receivable.  The Collection Agent shall have no

obligation to remit any such funds or records to the Seller until the

Collection Agent receives evidence (reasonably satisfactory to the Agent) that

the Seller is entitled to such items. 

The Collection Agent has no obligations concerning indebtedness that is

not a Receivable other than to deliver the collections and records for such

indebtedness to the Seller when required by this Section 3.2(c).

 

(d)           The

Collection Agent shall take all actions necessary to maintain the perfection

and priority of the security interest of the Agent in the Receivables.

 

(e)           Any

replacement Collection Agent may not be a direct or indirect competitor of any

Seller Entity and shall agree to be bound by a confidentiality agreement

substantively identical to that set forth in Section 9.10.

 

Section 3.3.           Reports.  On or

before the twentieth day of each month, and, after the occurrence of a

Termination Event, at such other times covering such other periods as is

requested by the Agent or the Instructing Group, the Collection Agent shall

deliver to the Agent a report reflecting information as of the close of

business of the Collection Agent for the immediately preceding Settlement

Period or such other preceding period as is requested (each a “Periodic

Report”),

containing the information described on Exhibit C (with such modifications

or additional information as reasonably requested by the Agent or the

Instructing Group).

 

Section 3.4.           Lock-Box

Arrangements.

 The Agent is hereby authorized to give

notice at any time after the occurrence of a Collection Agent Replacement Event

to any or all Lock-Box Banks that the Agent is exercising its rights under the

Lock-Box Letters and to take all actions permitted under the Lock-Box

Letters.  The Seller agrees to take any

action reasonably requested by the Agent to facilitate the foregoing.  After the Agent takes any such action under

the Lock-Box Letters, the Seller shall immediately deliver to the Agent any

Collections received by the Seller.  If

the Agent takes control of any Lock-Box Account, the Agent shall distribute

Collections it receives in accordance herewith and shall deliver to the

Collection Agent, for distribution under Section 3.2, all other amounts it

receives from such Lock-Box Account.

 

Section 3.5.           Enforcement

Rights.  (a) The Agent may at any time after the

occurrence of a Collection Agent Replacement Event direct the Obligors and the

Lock-Box Banks to make all payments on the Receivables directly to the Agent or

its designee.  The Agent may, and the

Seller shall at the Agent’s request, withhold the identity of the Purchasers

from the Obligors and Lock-Box Banks. 

Upon the Agent’s request after the occurrence of a Collection Agent

Replacement Event, the Seller (at the Seller’s expense) shall (i) give

notice to each Obligor of the Agent’s ownership of the Sold Interest and direct

that payments on Receivables be made directly to the Agent or its designee,

(ii) assemble for the Agent all Records and collateral security for the

Receivables and the Related Security and transfer to the Agent (or its

designee), or (to the extent permitted by applicable law and contract) license

to the Agent (or its designee) the use of, all software useful to collect the

Receivables and (iii) segregate in a manner acceptable to the Agent all

Collections the Seller receives and, promptly upon receipt, remit such

Collections in the form received, duly endorsed or with duly executed

instruments of transfer, to the Agent or its designee.

 

(b)           Prior

to the occurrence of a Termination Event, neither the Agent nor any Purchaser

will contact or communicate with any Obligor without the prior written consent

of the Seller.  After the occurrence of

a Collection Agent Replacement Event, the Seller hereby irrevocably appoints

the Agent as its attorney-in-fact coupled with an interest, with full power of

substitution and with full authority in the place of the Seller, to take any

and all steps deemed desirable by the Agent, in the name and on behalf of the

Seller to (i) collect any amounts due under any Receivable, including endorsing

the name of the Seller on checks and other instruments representing Collections

and enforcing such Receivables and the Related Security, and (ii) exercise any

and all of the Seller’s rights and remedies under the Purchase Agreement.  The Agent’s powers under this

Section 3.5(b) shall not subject the Agent to any liability if any action

taken by it proves to be inadequate or invalid, nor shall such powers confer

any obligation whatsoever upon the Agent.

 

(c)           Neither

the Agent nor any Purchaser shall have any obligation to take or consent to any

action to realize upon any Receivable or Related Security or to enforce any

rights or remedies related thereto.  To

the extent that the Agent and the Purchasers elect not to enforce any rights

they may have been granted by the Seller with respect to the Receivables and

the Related Security, the Seller may exercise such rights in accordance with

the terms hereof.

 

Section 3.6.           Collection

Agent Fee.  On or before the twentieth day of each

calendar month, the Seller shall pay to the Collection Agent a fee for the

immediately preceding calendar month as compensation for its services (the “Collection

Agent Fee”) equal to (a) at all times an Affiliate of the

Seller is the Collection Agent, such consideration as is acceptable to it, so

long as such consideration is upon fair and reasonable terms no less favorable

to the Seller than could be obtained in a comparable arm's–length

transaction with a Person other than a Seller Entity, the receipt and

sufficiency of which is hereby acknowledged, and (b) at all times any

other Person is the Collection Agent, a reasonable amount agreed upon by the

Agent and the new Collection Agent on an arm’s–length basis reflecting

rates and terms prevailing in the market at such time.  The Collection Agent may apply to payment of

the Collection Agent Fee only the portion of the Collections in excess of

Collections that fund Reinvestment Purchases and that pay Funding Charges and

Discount.  The Agent may, with the

consent of the Instructing Group, pay the Collection Agent Fee to the

Collection Agent from the Sold Interest in Collections.  The Seller shall be obligated to reimburse

any such payment.

 

Section 3.7.           Responsibilities

of the Seller.  The Seller shall, or shall cause the

Originators to, pay when due all Taxes payable in connection with the

Receivables and the Related Security or their creation or satisfaction other

than Taxes for which the Seller is not obligated to indemnify the Agent and the

Purchasers pursuant to Section 6.1. 

The Seller shall, and shall cause the Originators to, perform all of its

obligations under agreements related to the Receivables and the Related

Security to the same extent as if interests in the Receivables and the Related

Security had not been transferred hereunder or, in the case of the Originators,

under the Purchase Agreement.  The

Agent’s or any Purchaser’s exercise of any rights hereunder shall not relieve

the Seller or the Originators from such obligations.  Neither the Agent nor any Purchaser shall have any obligation to

perform any obligation of the Seller or of the Originators or any other

obligation or liability in connection with the Receivables or the Related

Security.

 

Section 3.8.           Actions by

Seller.  The Seller shall defend and indemnify the

Agent and each Purchaser against all costs, expenses, claims and liabilities

for any action taken by the Seller, the Originators or any other Affiliate of

the Seller or of the Originators (whether acting as Collection Agent or

otherwise) related to any Receivable and the Related Security, or arising out

of any alleged failure of compliance of any Receivable or the Related Security

with the provisions of any law or regulation, except to the extent such costs,

expenses, claims and liabilities are attributable to the gross negligence or

willful misconduct of the Person seeking their recovery.  If any goods related to a Receivable are

repossessed, the Seller agrees to resell, or to have the Originators or another

Affiliate resell, such goods in a commercially reasonable manner for the

account of the Agent and remit, or have remitted, to the Agent the Purchasers’

share in the gross sale proceeds thereof net of any out-of-pocket expenses and

any equity of redemption of the Obligor thereon.  Any such moneys collected by the Seller or the Originators or

other Affiliate of the Seller pursuant to this Section 3.8 shall be

segregated and held in trust for the Agent and remitted to the Agent’s Account

within one Business Day of receipt as part of the Sold Interest in Collections

for application as provided herein.

 

Section 3.9.           Indemnities by the Collection Agent.  Without limiting any other rights any Person

may have hereunder or under applicable law, the Collection Agent hereby

indemnifies and holds harmless the Seller, the Agent and each Purchaser and

their respective officers, directors, agents and employees (each a “Collection

Agent Indemnified Party”) from and against any and all damages, losses,

claims, liabilities, penalties, Taxes, costs and expenses (including attorneys’

fees and court costs) (all of the foregoing collectively, the “Collection

Agent Indemnified Losses”) at any time imposed on or incurred by any

Collection Agent Indemnified Party to the extent arising out of or otherwise

relating to:

 

(i)            any representation or warranty made

by the Collection Agent in this Agreement or any Periodic Report or any other

information or report delivered by the Collection Agent pursuant hereto, which

shall have been false or incorrect in any material respect when made;

 

(ii)           the failure by the Collection Agent

to comply with any applicable law, rule or regulation related to any Receivable

or the Related Security;

 

(iii)          any loss of a perfected security

interest (or in the priority of such security interest) as a result of any

commingling by the Collection Agent of funds to which the Agent or any

Purchaser is entitled hereunder with any other funds;

 

(iv)          the imposition of any Lien with

respect to any Receivable, Related Security or Lock-Box Account as a result of

any action taken by the Collection Agent under any Transaction Documents; or

 

(v)           any failure of the Collection Agent

to perform its duties or obligations in accordance with the provisions of this

Agreement (including, without limitation, compliance with the Credit and

Collection Policy) or any other Transaction Document to which the Collection

Agent is a party;

 

whether arising by reason of the acts to

be performed by the Collection Agent hereunder or otherwise, excluding only

Collection Agent Indemnified Losses to the extent (a) a final judgment of

a court of competent jurisdiction determined that such Collection Agent

Indemnified Losses resulted solely from gross negligence or willful misconduct

of the Collection Agent Indemnified Party seeking indemnification,

(b) solely due to the credit risk of the Obligor and for which

reimbursement would constitute recourse to the Collection Agent for

uncollectible Receivables, or (c) such Collection Agent Indemnified Losses

include Taxes on, or measured by, the overall net income of the Agent or any

Purchaser computed in accordance with the Intended Tax Characterization; provided,

however, that nothing contained in this sentence shall limit the

liability of the Collection Agent or limit the recourse of the Agent and each

Purchaser to the Collection Agent for any amounts otherwise specifically

provided to be paid by the Collection Agent hereunder.

 

Section 3.10.        Currency

Conversion. The Collection Agent shall

remit all Collections on Receivables that are not denominated in US Dollars in

US Dollars converted at the applicable Exchange Rate. Each Exchange Rate

notified by the Collection Agent to the Agent in a Periodic Report will be

determined by the Collection Agent in good faith.

 

Article IV

 

Representations and Warranties

 

Section 4.1.           Representations and Warranties.  The Seller represents and warrants to the

Agent and each Purchaser as of the Closing Date, the date of each Incremental

Purchase, and (except for the representations and warranties set forth in

Section 4.1(g) and (h)) the date of each Reinvestment Purchase, that:

 

(a)           Corporate Existence and Power.  Each of the Seller and each Seller Entity is

an exempted company or corporation duly organized, validly existing and in good

standing under the laws of its jurisdiction of incorporation and has all

corporate power and authority and all governmental licenses, authorizations,

consents and approvals required to carry on its business in each jurisdiction

in which its business is now conducted, except where failure to obtain such

license, authorization, consent or approval would not have a material adverse

effect on (i) its ability to perform its obligations under, or the

enforceability of, any Transaction Document, (ii) the business or

financial condition of the Parent and its Subsidiaries, taken as a whole,

(iii) the interests of the Agent or any Purchaser under any Transaction

Document or (iv) the enforceability or collectibility of a material portion

of the Receivables.

 

(b)           Corporate Authorization and No Contravention.  The execution, delivery and performance by

each of the Seller and each Seller Entity of each Transaction Document to which

it is a party and the creation of all security interests provided for herein

and therein (i) are within its powers, (ii) have been duly authorized

by all necessary action, (iii) do not contravene or constitute a default

under (A) any applicable law, rule or regulation, (B) its or any other

Seller Entity’s memorandum and articles of association or charter or by-laws or

(C) any agreement, order or other instrument to which it or any other

Seller Entity is a party or its property is subject and (iv) will not

result in any Adverse Claim on any Receivable other than pursuant to the

Transaction Documents, the Related Security or Collection or give cause for the

acceleration of any indebtedness of the Seller or any other Seller Entity.

 

(c)           No Consent Required.  No approval, authorization or other action

by, or filings with, any Governmental Authority or other Person is required in

connection with the execution, delivery and performance by the Seller or any

Seller Entity of any Transaction Document to which it is a party or any

transaction contemplated thereby.

 

(d)           Binding Effect.  Each Transaction Document to which the Seller or any Seller Entity

is a party constitutes the legal, valid and binding obligation of such Person

enforceable against that Person in accordance with its terms, except as limited

by bankruptcy, insolvency, or other similar laws of general application

relating to or affecting the enforcement of creditors’ rights generally and

subject to general principles of equity.

 

(e)           Perfection of Ownership Interest.  The Cayman Islands is not a jurisdiction

whose law generally requires information concerning the existence of a

non-possessory security interest in the Receivables, Collections or Related

Security to be made generally available in a filing, recording or registration

system as a condition or result of the security interest’s obtaining priority

over the rights of a lien creditor with respect thereto.  Immediately preceding its sale of

Receivables to the Seller, an Originator was the owner of, had good title to,

and effectively sold, such Receivables to the Seller, free and clear of any

Adverse Claim.  The Seller owns and has

good title to the Receivables free of any Adverse Claim other than the

interests of the Purchasers (through the Agent) therein that are created

hereby, and each Purchaser shall at all times have a valid and continuing

undivided percentage ownership interest, which shall be a first priority

perfected security interest for purposes of Article 9 of the applicable Uniform

Commercial Code enforceable as such against creditors of and purchasers from

the Seller, in the Receivables and Collections to the extent of its Purchase

Interest then in effect.  Other than the

ownership or security interest granted to the Agent pursuant to this Agreement,

the Seller has not pledged, assigned, sold or granted a security interest in,

or otherwise conveyed, the Receivables or the Collections.  The Seller has not authorized the filing of

and is not aware of any financing statements against the Seller that include a

description of collateral covering the Receivables or the Collections other

than any financing statement relating to the security interest granted to the

Agent hereunder.  The Seller has caused

or will have caused, within ten days after the date hereof, the filing of all

appropriate financing statements in the proper filing office in the appropriate

jurisdictions under the applicable law in order to perfect the conveyance of

Receivables by Seller hereunder.

 

(f)            Accuracy of Information.  The information furnished by the Seller, any

Seller Entity or any Affiliate of any such Person to the Agent or any Purchaser

in connection with any Transaction Document, or any transaction contemplated

thereby, taken as a whole, is true and accurate in all material respects (and

is not incomplete by omitting any information necessary to prevent such

information from being materially misleading), provided that, with respect

to projected financial information, Seller represents only that such

information was prepared in good faith, subject to any express qualifications

set forth in such projections, based upon assumptions believed to be reasonable

at the time.

 

(g)           No Actions, Suits.  Except for such proceedings as are described

in the Initial Collection Agent’s most recent Quarterly Report on Form 10–Q

filed with the Securities Exchange Commission,there are no actions, suits

or other proceedings (including matters relating to environmental liability)

pending or threatened against or affecting the Seller, any Seller Entity or any

Subsidiary, or any of their respective properties, that (i) have a reasonable

likelihood of an adverse outcome and, if adversely determined (individually or

in the aggregate), can reasonably be expected to have a material adverse effect

on the financial condition of the Seller or the Parent and its Subsidiaries,

taken as a whole, or on the collectibility of a material portion of the

Receivables or (ii) involve any Transaction Document or any transaction

contemplated thereby.  None of the

Seller, any Seller Entity or any Subsidiary is in default of any contractual

obligation or in violation of any order, rule or regulation of any Governmental

Authority, which default or violation is reasonably likely to have a material

adverse effect upon (i) the financial condition of the Seller, the Seller

Entities and the Subsidiaries taken as a whole or (ii) the collectibility

of a material portion of the Receivables.

 

(h)           No Material Adverse Change.  Except as described in the Parent’s Quarterly

Reports on Form 10–Q for the fiscal quarters ended March 31,

2001 and June 30, 2001, there has been no material adverse change since

December 31, 2000 in the collectibility of a material portion of the

Receivables or the (i) financial condition, business, operations or

prospects of the Seller or of the Parent and its Subsidiaries, taken as a

whole, or (ii) ability of the Seller or any Seller Entity to perform its

obligations under any Transaction Document.

 

(i)            Accuracy of Exhibits; Lock-Box Arrangements.  All information on Exhibits D-F (listing

offices and names of the Seller and the Originators and where they maintain

Records; the Subsidiaries; and Lock Boxes) is true and complete in all material

respects, subject to any changes permitted by, and notified to the Agent in

accordance with, Article V.  None of the

Seller's or Originators’ locations (including without limitation their

respective chief executive offices and principal places of business) has

changed within the past 12 months (or such shorter period as the Seller has

been in existence).  During the past 12

months, neither the Seller nor any Originator has used any corporate,

fictitious or trade name other than a name set forth of Exhibit D.  Exhibit D lists the federal employer

identification numbers of the Seller and the Originators.  The Seller has delivered a copy of all

Lock-Box Agreements (or, with respect to Collections on the Receivables

originated by the Canadian Originators, will deliver (or has delivered) such

Lock-Box Agreements within 60 days after the date of this Agreement) to the

Agent.  The Seller has not granted any

interest in any Lock-Box or Lock-Box Account to any Person other than the Agent

and, upon delivery to a Lock-Box Bank of the related Lock-Box Letter, the Agent

will have exclusive ownership and control of the Lock-Box Account at such Lock-Box

Bank.

 

(j)            Sales by the Originators.  Each sale by the Originators to the Seller

of an interest in Receivables and their Collections has been made in accordance

with the terms of the Purchase Agreement, including the payment by the Seller

to the Originators of the purchase price described in the Purchase

Agreement.  Each such sale has been made

for “reasonably

equivalent value” (as such term is used in Section 548 of the

Bankruptcy Code) and not for or on account of “antecedent debt” (as such

term is used in Section 547 of the Bankruptcy Code) owed by the

Originators to the Seller.

 

(k)           Eligible Receivables.  Each Receivable listed on the Periodic Report as part

of the Eligible Receivables Balance was an Eligible Receivable as of the date

of such Periodic Report.

 

(l)            Location of Receivables.  The contracts relating to any Receivable are

not governed by the laws of the Cayman Islands. None of the Receivables are

located in the Cayman Islands within the meaning of Cayman Islands law.

 

Article V

 

Covenants

 

Section 5.1.           Covenants

of the Seller.  The Seller hereby covenants and agrees to

comply with the following covenants and agreements, unless the Agent (with the

consent of the Instructing Group) shall otherwise consent:

 

(a)           Financial

Reporting.  The Seller will

maintain a system of accounting established and administered in accordance with

GAAP and will furnish to the Agent and each Purchaser:

 

(i)            Annual Financial Statements.  Within 90 days after each fiscal year of

(A) the Parent, a copy of Parent’s annual audited financial statements

(including a consolidated balance sheet, consolidated statement of income and

retained earnings and statement of cash flows, with related footnotes)

certified by PriceWaterhouseCoopers or other independent certified public

accountants of national standing and prepared on a consolidated basis in

conformity with GAAP, and (B) each of the Seller and the Originators

(other than the Parent) the balance sheet for such Person (and, additionally

for the Seller, an annual profit and loss statement) certified by a Designated

Financial Officer thereof, in each case prepared on a consolidated basis in

conformity with GAAP as of the close of such fiscal year for the fiscal year

then ended;

 

(ii)           Quarterly Financial Statements.  Within 45 days after each (except the last)

fiscal quarter of each fiscal year of (A) the Parent, copies of its

unaudited financial statements (including at least a consolidated balance sheet

as of the close of such quarter and statements of income, retained earnings and

cash flows for the period from the beginning of the fiscal year to the close of

such quarter) certified by a Designated Financial Officer and prepared in a

manner consistent with the financial statements described in part (A) of clause

(i) of this Section 5.l(a) and (B) each of the Seller and the Originators

(other than a Parent), the quarterly balance sheet as of the end of such

quarter for such Person (and, additionally for the Seller, a profit and loss

statement) for the period from the beginning of such fiscal year to the close

of such quarter, in each case certified by a Designated Financial Officer

thereof and prepared in a manner consistent with part (B) of clause (i) of

Section 5.1(a);

 

(iii)          Officer’s Certificate.  Each time financial statements are furnished

pursuant to clause (i) or (ii) of this Section 5.1(a), a compliance

certificate (in substantially the form of Exhibit G) signed by a

Designated Financial Officer, dated the date of such financial statements;

 

(iv)          Public Reports.  Promptly upon becoming available, a copy of each report or proxy

statement filed by the Parent with the Securities Exchange Commission or any

securities exchange; and

 

(v)           Other Information.  With reasonable promptness, such other

information (including non-financial information) as may be reasonably

requested by the Agent or any Purchaser (with a copy of such request to the

Agent).

 

(b)           Notices.  Promptly upon a Financial Officer (as

defined in the Credit Agreement) or other executive officer of Seller or any Seller

Entity becoming aware of any of the following the Seller will notify the Agent

and provide a description of:

 

(i)            Potential Termination Events.  The occurrence of any Potential Termination

Event;

 

(ii)           Representations and Warranties.  The failure of any representation or

warranty herein to be true (when made or at any time thereafter) in any

material respect;

 

(iii)          Downgrading.  The downgrading, withdrawal or suspension of any rating by any

rating agency of any indebtedness of any Seller Entity;

 

(iv)          Litigation.  The institution of any litigation, arbitration proceeding or

governmental proceeding reasonably likely to be material to any Seller Entity

or the collectibility or quality of a material portion of the Receivables;

 

(v)           Judgments.  The entry of any judgment, award or decree against any Seller

Entity if the aggregate amount of all unsatisfied and unstayed judgments then

outstanding against the Seller, the Seller Entities and the Subsidiaries

exceeds $10,000,000or the entry of a judgment, award or

decree against the Seller that exceeds $10,775; or

 

(vi)          Changes in Business.  Any change in the character of any Seller

Entity’s business that is reasonably expected to impair the collectibility or

quality of any material portion of the Receivables.

 

If the Agent receives such a notice, the Agent

shall promptly give notice thereof to each Purchaser.

 

(c)           Conduct

of Business.  The Seller will

perform all actions necessary to remain duly incorporated, validly existing and

in good standing in its jurisdiction of incorporation and to maintain all

requisite authority to conduct its business in each jurisdiction in which it

conducts business.

 

(d)           Compliance

with Laws.  The Seller will

comply with all laws, regulations, judgments and other directions or orders

imposed by any Governmental Authority to which such Person or any Receivable,

any Related Security or Collection may be subject, except to the extent

non-compliance will have a material adverse effect on (i) the collectibility of

the Receivables, or (ii) the financial condition, business or operations of

Parent and its Subsidiaries, taken as a whole.

 

(e)           Furnishing

Information and Inspection of Records.  The

Seller will furnish to the Agent and the Purchasers such information concerning

the Receivables and the Related Security as the Agent or a Purchaser may

reasonably request.  The Seller will,

and will cause the Originators to, permit, at any time during regular business

hours, upon reasonable advance notice, the Agent or any Purchaser (or any

representatives thereof) (i) to examine and make copies of all Records,

(ii) to visit the offices and properties of the Seller and the Originators

for the purpose of examining the Records and (iii) to discuss matters

relating hereto with any of the Seller’s or the Originators’ officers,

directors, employees or independent public accountants having knowledge of such

matters.  Once during each calendar year

in connection with any proposed extension of the Liquidity Termination Date or

at any time after the occurrence and during the continuation of a Termination

Event or a Potential Termination Event relating to a Termination Event

described in clause (f) of the definition thereof, the Agent may (at the

expense of the Seller) have an independent public accounting firm conduct an

audit of the Records or make test verifications of the Receivables and

Collections (it being understood that the Agent has already conducted such

audit for calendar year 2001).

 

(f)            Keeping

Records.  (i) The Seller

will, and will cause the Originators to, have and maintain

(A) administrative and operating procedures (including an ability to

recreate Records if originals are destroyed), (B) adequate facilities,

personnel and equipment and (C) all Records and other information necessary

or advisable for collecting the Receivables (including Records adequate to

permit the immediate identification of each new Receivable and all Collections

of, and adjustments to, each existing Receivable).  The Seller will give the Agent prior notice of any material change

in such administrative and operating procedures.

 

(ii)  The

Seller will, (A) at all times from and after the date hereof, clearly and

conspicuously mark its computer and master data processing books and records

with a legend describing the Agent’s and the Purchasers’ interest in the

Receivables and the Collections and (B) upon the request of the Agent

after a Termination Event, so mark each contract relating to a Receivable and

deliver to the Agent all such contracts (including all multiple originals of

such contracts), with any appropriate endorsement or assignment, or segregate

(from all other receivables then owned or being serviced by the Seller) the

Receivables and all contracts relating to each Receivable and hold in trust and

safely keep such contracts so legended in separate filing cabinets or other

suitable containers at such locations as the Agent may specify.

 

(g)           Perfection.  (i) The Seller will, and

will cause each Originator to, at its expense, promptly execute and deliver all

instruments and documents and take all action necessary or reasonably requested

by the Agent (including the execution and filing of financing or continuation

statements, amendments thereto or assignments thereof) to enable the Agent to

exercise and enforce all its rights hereunder and to vest and maintain vested

in the Agent a valid, first priority perfected security interest in the

Receivables, the Collections, the Related Security, the Purchase Agreement, the

Lock-Box Accounts and proceeds thereof free and clear of any Adverse Claim

(other than the Seller’s interest therein) (and a perfected ownership interest

in the Receivables and Collections to the extent of the Sold Interest).  The Agent will be permitted to sign and file

any continuation statements, amendments thereto and assignments thereof without

the Seller’s signature.

 

(ii)  The

Seller will, and will cause each Originator to, only change its name, identity

structure or relocate its jurisdiction of organization or chief executive

office or the Records following thirty (30) days advance written notice to

the Agent and the delivery to the Agent of all financing statements,

instruments and other documents (including direction letters) reasonably

requested by the Agent.

 

(iii)  Each of

the Seller and each Originator (other than the Canadian Originators) will at

all times maintain its chief executive offices and each Originator will

maintain its jurisdiction of organization within a jurisdiction in the USA in

which Article 9 of the UCC is in effect. 

The Canadian Originators will maintain their jurisdictions of

organization and chief executive offices in the Province of Canada in which

they are currently located.  If the

Seller or any Originator moves its chief executive office to a location that

imposes Taxes, fees or other charges to perfect the Agent’s and the Purchasers’

interests hereunder or the Seller’s interests under the Purchase Agreement, the

Seller will pay all such amounts and any other costs and expenses incurred in

order to maintain the enforceability of the Transaction Documents, the Sold

Interest and the interests of the Agent and the Purchasers in the Receivables,

the Related Security, Collections, Purchase Agreement and Lock-Box Accounts.

 

(h)           Performance

of Duties.  The Seller will

perform its respective duties or obligations in accordance with the provisions

of each of the Transaction Documents. 

The Seller (at its expense) will (i) fully and timely perform in all

material respects all agreements required to be observed by it in connection

with each Receivable, (ii) comply in all material respects with the Credit and

Collection Policy, and (iii) refrain from any action that may materially impair

the rights of the Agent or the Purchasers in the Receivables, the Related

Security, Collections, Purchase Agreement or Lock-Box Accounts.

 

(i)            Payments on

Receivables, Accounts.  The

Seller will at all times instruct all Obligors to deliver payments on the

Receivables (including Deemed Collections) to a Lock-Box or Lock-Box

Account.  The provisions of the previous

sentence shall only apply to payments on Receivables originated by the Canadian

Originators on and after the 61st day following the date of this

Agreement.  If any such payments or

other Collections are received by the Seller or any Originator, it shall hold

such payments in trust for the benefit of the Agent and the Purchasers and

promptly (but in any event within two Business Days after receipt) remit such

funds into a Lock-Box Account.  The

Seller will cause each Lock-Box Bank to comply with the terms of each

applicable Lock-Box Letter.  The Seller

will not permit the funds of any Affiliate to be deposited into any Lock-Box

Account.  If such funds are nevertheless

deposited into any Lock-Box Account, the Seller will promptly identify and

separate such funds for segregation. 

The Seller will not commingle Collections or other funds to which the

Agent or any Purchaser is entitled with any other funds.  The Seller shall only add, and shall only

permit the Originators to add, a Lock-Box Bank, Lock-Box, or Lock-Box Account

to those listed on Exhibit E if the Agent has received notice of and has

consented to such addition, a copy of any new Lock-Box Agreement and an

executed and acknowledged copy of a Lock-Box Letter substantially in the form

of Exhibit F (with such changes as are acceptable to the Agent) from any

new Lock-Box Bank.  The Seller shall

only terminate a Lock-Box Bank or Lock-Box, or close a Lock-Box Account, upon

30 days advance notice to the Agent.

 

(j)            Sales and

Adverse Claims Relating to Receivables. 

Except as otherwise provided herein, the Seller will not (by

operation of law or otherwise) dispose of or otherwise transfer, or create or

suffer to exist any Adverse Claim upon, any Receivable or any proceeds thereof.

 

(k)           Extension or

Amendment of Receivables.  Except

as otherwise permitted in Section 3.2(b) and then subject to

Section 1.5, the Seller will not extend, amend, rescind or cancel any

Receivable.

 

(l)            Change in

Business or Credit and Collection Policy. 

The Seller will not make any material change in the character

of its business and will not make any material adverse change to the Credit and

Collection Policy.

 

(m)          Certain

Agreements.  The Seller will

not amend, modify, waive, revoke or terminate any Transaction Document to which

it is a party or Section 3 of the Seller’s memorandum of association or

Section 86 or Section 95(b) of the Seller’s Articles of Association.

 

(n)           Other

Business.  The Seller will

not:  (i) engage in any business other

than the transactions contemplated by the Transaction Documents, (ii) create,

incur or permit to exist any Debt of any kind (or cause or permit to be issued

for its account any letters of credit or bankers’ acceptances) other than

pursuant to this Agreement or the Note, or (iii) form any Subsidiary or make

any investments in any other Person; provided, however, that the Seller shall

be permitted to incur minimal obligations to the extent necessary for the

day-to-day operations of the Seller (such as expenses for stationery, audits,

maintenance of legal status, etc.).

 

(o)           Nonconsolidation.  The Seller will operate in such a manner

that the separate corporate existence of the Seller and each Seller Entity and

Affiliate thereof would not be disregarded in the event of the bankruptcy or

insolvency of any Seller Entity and Affiliate thereof and, without limiting the

generality of the foregoing:

 

(i)            the Seller will not engage in any

activity other than those activities expressly permitted under the Seller’s

organizational documents and the Transaction Documents, nor will the Seller

enter into any agreement other than this Agreement, the other Transaction

Documents to which it is a party and, with the prior written consent of the

Agent, any other agreement necessary to carry out more effectively the provisions

and purposes hereof or thereof;

 

(ii)           the Seller will maintain a business

office separate from that of each of the Seller Entities and the Affiliates

thereof (which office may be located within the physical premises of the Parent

pursuant to an arms’ length agreement);

 

(iii)          the Seller will cause the financial

statements and books and records of the Seller to reflect the separate

corporate existence of the Seller;

 

(iv)          the Seller will not, except as

otherwise expressly permitted hereunder, under the other Transaction Documents

and under the Seller’s organizational documents, authorize any Seller Entity or

Affiliate thereof to (A) pay the Seller’s expenses, (B) guarantee the Seller’s

obligations, or (C) advance funds to the Seller for the payment of expenses or

otherwise except that Parent may make contributions to the capital of Seller;

and

 

(v)           the Seller will not act as agent for

any Seller Entity or Affiliate, but instead will present itself to the public

as a corporation separate from each such Person and independently engaged in

the business of purchasing and financing Receivables.

 

(p)           Mergers,

Consolidations and Acquisitions. 

The Seller will not merge into or consolidate with any other Person, or

permit any other Person to merge into or consolidate with it, or purchase,

lease or otherwise acquire (in one transaction or a series of transactions) all

or substantially all of the assets of any other Person (whether directly by

purchase, lease or other acquisition of all or substantially all of the assets

of such Person or indirectly by purchase or other acquisition of all or

substantially all of the capital stock of such other Person) other than the

acquisition of the Receivables and Related Security pursuant to the Purchase

Agreement.

 

Article VI

 

Indemnification

 

Section 6.1.           Indemnities

by the Seller.  Without limiting any other rights any Person

may have hereunder or under applicable law, the Seller hereby indemnifies and

holds harmless, on an after-Tax basis, the Agent and each Purchaser and their

respective officers, directors, agents and employees (each an “Indemnified

Party”) from and against any and all damages, losses, claims,

liabilities, penalties, Taxes, costs and expenses (including attorneys’ fees

and court costs) (all of the foregoing collectively, the “Indemnified Losses”) at any

time imposed on or incurred by any Indemnified Party arising out of or

otherwise relating to any Transaction Document, the transactions contemplated

thereby or any action taken or omitted by any of the Indemnified Parties

(including any action taken by the Agent as attorney-in-fact for the Seller

pursuant to Section 3.5(b)), whether arising by reason of the acts to be

performed by the Seller hereunder or otherwise, excluding only Indemnified

Losses to the extent (a) a final judgment of a court of competent

jurisdiction holds such Indemnified Losses resulted from gross negligence or

willful misconduct of the Indemnified Party seeking indemnification, (b) due to

the credit risk of the Obligor and for which reimbursement would constitute

recourse to the Seller or the Collection Agent for uncollectible Receivables,

(c) such Indemnified Losses include Taxes on, or measured by, the overall

net income of the Agent or any Purchaser computed in accordance with the Intended

Tax Characterization or (d) such Taxes include Taxes imposed in any

jurisdiction other than the United States, Canada or the Cayman Islands by

reason of the organization of the Agent or any Purchaser (or any of their

Affiliates) in such jurisdiction, the location of assets of the Agent or any

Purchaser (or any of their Affiliates) in such jurisdiction, or the conduct of

activities by the Agent or any Purchaser (or any of their Affiliates) in such

jurisdiction.  Without limiting the

foregoing indemnification, but subject to the limitations set forth in

clauses (a), (b), (c) and (d) of the previous sentence, the Seller shall

indemnify each Indemnified Party for Indemnified Losses relating to or

resulting from:

 

(i)            any representation or warranty made

by the Seller (or any employee or agent of the Seller) under or in connection

with this Agreement, any Periodic Report or any other information or report

delivered by the Seller, any Seller Entity or the Collection Agent pursuant

hereto, which shall have been false or incorrect in any material respect when

made or deemed made;

 

(ii)           the failure by the Seller to comply

with any applicable law, rule or regulation related to any Receivable, or the

nonconformity of any Receivable with any such applicable law, rule or

regulation or the failure by the Seller to satisfy any of its obligations under

any Transaction Document;

 

(iii)          the failure of the Seller to vest and

maintain vested in the Agent, for the benefit of the Purchasers, a perfected

ownership or security interest in the Sold Interest and the property conveyed

pursuant to Section 1.1 and Section 1.8, free and clear of any

Adverse Claim;

 

(iv)          any commingling of funds to which the

Agent or any Purchaser is entitled hereunder with any other funds;

 

(v)           any failure of a Lock-Box Bank to

comply with the terms of the applicable Lock-Box Letter;

 

(vi)          any dispute, claim, offset or defense

(other than discharge in bankruptcy of the Obligor) of the Obligor to the

payment of any Receivable, or any other claim resulting from the sale or lease

of goods or the rendering of services related to such Receivable or the

furnishing or failure to furnish any such goods or services or other similar

claim or defense not arising from the financial inability of any Obligor to pay

undisputed indebtedness;

 

(vii)         any failure of the Seller to perform

its duties or obligations in accordance with the provisions of this Agreement

or any other Transaction Document to which it is a party;

 

(viii)        any action taken by the Agent  as attorney-in-fact for the Seller pursuant

to Section 3.5(b); or

 

(ix)           any environmental liability claim,

products liability claim or personal injury or property damage suit or other

similar or related claim or action of whatever sort, arising out of or in

connection with any Receivable or any other suit, claim or action of whatever

sort relating to any of the Transaction Documents.

 

Section 6.2.           Increased Cost and Reduced Return.  If the adoption after the date hereof of any

applicable law, rule or regulation, or any change therein after the date

hereof, or any change after the date hereof in the interpretation or

administration thereof by any Governmental Authority charged with the

interpretation or administration thereof, or compliance by any Amsterdam

Funding Source, the Agent or any Purchaser (collectively, the “Funding

Parties”) with any request or directive (whether or not having the

force of law) issued after the date hereof of any such Governmental Authority

(a “Regulatory

Change”) (a) subjects any Funding Party to any additional

charge or withholding on or in connection with the Transfer Agreement or this

Agreement (collectively, the “Funding Documents”) or any Receivable,

(b) changes the basis of taxation of payments to any of the Funding

Parties of any amounts payable under any of the Funding Documents, other than

(i) any Taxes referred to in Section 6.4 or (ii) any Taxes

imposed on or measured by the net income of the Funding Party,

(c) imposes, modifies or deems applicable any reserve, assessment,

insurance charge, special deposit or similar requirement against assets of,

deposits with or for the account of, or any credit extended by, any of the

Funding Parties, (d) has the effect of reducing the rate of return on such

Funding Party’s capital to a level below that which such Funding Party could

have achieved but for such adoption, change or compliance (taking into

consideration such Funding Party’s policies concerning capital adequacy) or

(e) imposes any other condition, and the result of any of the foregoing is

(x) to impose a cost on, or increase the cost to, any Funding Party of its

commitment under any Funding Document or of purchasing, maintaining or funding

any interest acquired under any Funding Document, (y) to reduce the amount

of any sum received or receivable by, or to reduce the rate of return of, any

Funding Party under any Funding Document or (z) to require any payment

calculated by reference to the amount of interests held or amounts received by

it hereunder, then, upon demand by the Agent, the Seller shall pay to the Agent

for the account of the Person such additional amounts as will compensate the

Agent or such Purchaser (or, in the case of Amsterdam, will enable Amsterdam to

compensate any Amsterdam Funding Source) for such increased cost or reduction.  Notwithstanding the foregoing, no Person

shall be entitled to receive any amount under this Section to the extent that

such amount relates to an increased cost or reduction incurred for a date that

is more than 180 days prior to the date that the Seller first receives notice

thereof, provided, that if such increased cost or reduction is imposed

retroactively, such 180-day period shall be extended to include the period of

the retroactive effect thereof.

 

Section 6.3.           Other

Costs and Expenses.  The Seller shall pay to the Agent on demand

all reasonable costs and expenses in connection with (a) the preparation,

execution, delivery and administration (including amendments of any provision)

of the Transaction Documents, (b) the sale of the Sold Interest, (c) the

perfection of the Agent’s rights in the Receivables and Collections,

(d) the enforcement by the Agent or the Purchasers of the obligations of

the Seller under the Transaction Documents or of any Obligor under a Receivable

and (e) the maintenance by the Agent of the Lock-Boxes and Lock-Box

Accounts, including fees, costs and expenses of legal counsel for the Agent

relating to any of the foregoing or, after the occurrence of a Termination

Event, to advising the Agent and any Purchaser about its rights and remedies

under any Transaction Document and all costs and expenses (including counsel

fees and expenses) of the Agent and each Purchaser in connection with the

enforcement of the Transaction Documents and in connection with the

administration of the Transaction Documents following a Termination Event.  The Seller shall reimburse the Agent and

Amsterdam for the cost of the Agent’s or Amsterdam’s auditors (which may be

employees of such Person) auditing the books, records and procedures of the

Seller.  Except as limited above, the

Seller shall reimburse Amsterdam on demand for all other costs and expenses

incurred by Amsterdam to the extent attributable to implementing the

Transaction Documents or the transactions contemplated thereby, including the

cost of the Rating Agencies confirming that the execution, delivery, and

performance of the Transaction Documents will not adversely affect the Ratings.

 

Section 6.4.           Withholding

Taxes.  (a) All payments made by the Seller

hereunder shall be made without withholding for or on account of any present or

future taxes (other than overall net income taxes on the recipient) imposed by

the United States, Canada or the Cayman Islands or any political subdivision or

taxing authority thereof.  If any such

withholding is so required, the Seller shall make the withholding, pay the

amount withheld to the appropriate authority before penalties attach thereto or

interest accrues thereon and pay such additional amount as may be necessary to

ensure that the net amount actually received by each Purchaser and the Agent

free and clear of such taxes (including such taxes on such additional amount)

is equal to the amount that Purchaser or the Agent (as the case may be) would

have received had such withholding not been made; provided, however, that no

such additional amounts shall be payable in respect of (i) any Taxes

imposed on the net income of the Agent or Purchaser or franchise taxes imposed

on the Agent or Purchaser by the jurisdiction under which the laws of which the

Agent or Purchaser is organized or has its principal place of business or where

it purchased its Purchase Interest or (ii) any Taxes imposed by reason of

the Agent’s or Purchaser’s failure to comply with the provisions of

Section 6.4(b).  If the Seller pays

any such taxes, penalties or interest, it shall deliver official tax receipts

evidencing that payment or certified copies thereof to the Purchaser or Agent

on whose account such withholding was made (with a copy to the Agent if not the

recipient of the original) promptly after the Seller’s receipt thereof.

 

(b)           (i) Before

the first date on which any amount is payable hereunder for the account of any

Purchaser not incorporated under the laws of the USA such Purchaser shall

deliver to the Seller and the Agent each two (2) duly executed and

completed originals of United States Internal Revenue Service Form W-8BEN or

W-8ECI  (or successor applicable form)

certifying that such Purchaser is entitled to receive payments hereunder without

deduction or withholding of any United States federal income taxes.  Each such Purchaser shall replace or update

such forms when necessary to maintain any applicable exemption and as requested

by the Agent or the Seller.  Before the

first date on which any amount is payable hereunder for the account of any

Purchaser incorporated under the laws of the USA such Purchaser shall deliver

to the Seller and the Agent each two (2) duly executed and completed originals

of United States Internal Revenue Service Form W-9 (or successor applicable

form) certifying that such Purchaser is entitled to receive payments hereunder

without deduction or withholding of any United States federal income

taxes.  Each such Purchaser shall

replace or update such forms when necessary to maintain any applicable

exemption and as requested by the Agent or the Seller.

 

(ii)           The

Purchaser agrees to comply, before the first date on which any amount is

payable hereunder, with any certification, identification, documentation,

reporting or other similar requirement if such compliance is required by law,

regulation, administrative practice or an applicable treaty as a precondition

to exemption from, or reduction in the rate of, deduction or withholding of any

taxes for which the Seller is required to pay additional amounts pursuant to Section 6.4(a)

hereof.

 

Section 6.5.           Payments

and Allocations.  If any Person seeks compensation pursuant to

this Article VI, such Person shall deliver to the Seller and the Agent a

certificate setting forth the amount due to such Person, a description of the

circumstance giving rise thereto and the basis of the calculations of such

amount.  Absent error, the Seller shall

pay to the Agent (for the account of such Person) the amount shown as due on

any such certificate within 10 Business Days after receipt of the notice.

 

Article VII

 

Conditions Precedent

 

Section 7.1.           Conditions

to Closing.  This Agreement shall become effective on the

first date all conditions in this Section 7.1 are satisfied.  On or before such date, the Seller shall

deliver to the Agent the following documents in form, substance and quantity

acceptable to the Agent:

 

(a)           A certificate of the Secretary of

each of the Seller and each Seller Entity certifying (i) the resolutions

of the Seller’s and each Seller Entity’s board of directors approving each

Transaction Document to which it is a party, (ii) the name, signature, and

authority of each officer who executes on the Seller’s or any Seller Entity’s

behalf a Transaction Document (on which certificate the Agent and each

Purchaser may conclusively rely until a revised certificate is received),

(iii) the Seller’s certificate of incorporation, certified by the

Registrar of Companies of the Cayman Islands, and each Seller Entity’s

certificate or articles of incorporation, certified by the Secretary of State

of its state of incorporation, (iv) a copy of the Seller’s memorandum and

articles of association and of each Seller Entity’s by-laws and (v) good

standing certificates issued by the Secretaries of State of each jurisdiction

where the Seller or any Seller Entity has material operations.

 

(b)           All instruments and other documents

required, or deemed desirable by the Agent, to perfect the Agent’s first

priority interest in the Receivables, Collections, the Purchase Agreement and

the Lock-Box Accounts in all appropriate jurisdictions.

 

(c)           UCC search reports (and equivalent

reports for the Canadian Originators) from all jurisdictions the Agent

requests.

 

(d)           Executed copies of (i) all

consents and authorizations necessary in connection with the Transaction

Documents (ii) all Lock-Box Letters (other than Lock-Box Letters relating to

the Receivables of the Canadian Originators, which shall be delivered within 60

days after the date of this Agreement), (iii) a compliance certificate in

the form of Exhibit G covering the period ending August 31, 2001,

(iv) a Periodic Report covering the Settlement Period ended

August 31, 2001 and (v) each Transaction Document.

 

(e)           Favorable opinions of counsel to the

Seller and each Seller Entity covering such matters as Amsterdam or the Agent

may request.

 

(f)            Such other approvals, opinions or

documents as the Agent or Amsterdam may request.

 

(g)           All legal matters related to the

Purchase are satisfactory to the Purchasers.

 

Section 7.2.           Conditions

to Each Purchase.  The obligation of each Committed Purchaser

to make any Purchase, and the right of the Seller to request or accept any

Purchase, are subject to the conditions (and each Purchase shall evidence the

Seller’s representation and warranty that clauses (a)-(d) of this

Section 7.2 have been satisfied) that on the date of such Purchase before

and after giving effect to the Purchase:

 

(a)           no representation or warranty set

forth in Article IV hereof (other than, in the case of any Reinvestment

Purchase, a representation or warranty set forth in Section 4.1(g) or (h)

hereof) shall be incorrect in any material respect;

 

(b)           in the case of an Incremental

Purchase, no Potential Termination Event shall then exist or shall occur as a

result of the Purchase;

 

(c)           the Liquidity Termination Date has

not occurred; and

 

(d)           after giving effect to the

application of the proceeds of such Purchase, (x) the outstanding Matured

Aggregate Investment would not exceed the Aggregate Commitment and (y) the

outstanding Aggregate Investment would not exceed the Purchase Limit.

 

Nothing in this Section 7.2 limits the

obligations of each Committed Purchaser to Amsterdam (including the Transfer

Agreement).

 

Article VIII

 

The Agent

 

Section 8.1.           Appointment

and Authorization.

Each Purchaser hereby irrevocably designates and appoints ABN AMRO Bank N.V. as

the “Agent”

under the Transaction Documents and authorizes the Agent to take such actions

and to exercise such powers as are delegated to the Agent thereby and to

exercise such other powers as are reasonably incidental thereto.  The Agent shall hold, in its name, for the

benefit of each Purchaser, the Purchase Interest of the Purchaser.  The Agent shall not have any duties other

than those expressly set forth in the Transaction Documents or any fiduciary

relationship with any Purchaser, and no implied obligations or liabilities

shall be read into any Transaction Document, or otherwise exist, against the

Agent.  The Agent does not assume, nor

shall it be deemed to have assumed, any obligation to, or relationship of trust

or agency with, the Seller. 

Notwithstanding any provision of this Agreement or any other Transaction

Document, in no event shall the Agent ever be required to take any action which

exposes the Agent to personal liability or which is contrary to the provision

of any Transaction Document or applicable law.

 

Section 8.2.           Delegation

of Duties.  The Agent may execute any of its duties

through agents or attorneys-in-fact and shall be entitled to advice of counsel

concerning all matters pertaining to such duties.  The Agent shall not be responsible to any Purchaser for the

negligence or misconduct of any agents or attorneys-in-fact selected by it with

reasonable care.

 

Section 8.3.           Exculpatory

Provisions.  Neither the Agent nor any of its directors,

officers, agents or employees shall be liable to any Purchaser for any action

taken or omitted (i) with the consent or at the direction of the Instructing

Group or (ii) in the absence of such Person’s gross negligence or willful

misconduct.  The Agent shall not be

responsible to any Purchaser or other Person for (i) any recitals,

representations, warranties or other statements made by the Seller, any Seller

Entity or any of their Affiliates, (ii) the value, validity,

effectiveness, genuineness, enforceability or sufficiency of any Transaction

Document, (iii) any failure of the Seller, any Seller Entity or any of

their Affiliates to perform any obligation or (iv) the satisfaction of any

condition specified in Article VII. 

The Agent shall not have any obligation to any Purchaser to ascertain or

inquire about the observance or performance of any agreement contained in any

Transaction Document or to inspect the properties, books or records of the

Seller, any Seller Entity or any of their Affiliates.

 

Section 8.4.           Reliance by

Agent.

As between the Agent and Purchasers, the Agent shall in all cases be entitled

to rely, and shall be fully protected in relying, upon any document, other

writing or conversation believed by it to be genuine and correct and to have been

signed, sent or made by the proper Person and upon advice and statements of

legal counsel (including counsel to the Seller), independent accountants and

other experts selected by the Agent.  As

between the Agent and Purchasers, the Agent shall in all cases be fully

justified in failing or refusing to take any action under any Transaction

Document unless it shall first receive such advice or concurrence of the

Purchasers, and assurance of its indemnification, as it deems appropriate.

 

Section 8.5.           Assumed

Payments.  Unless the Agent shall have received notice

from the applicable Purchaser before the date of any Incremental Purchase that

such Purchaser will not make available to the Agent the amount it is scheduled

to remit as part of such Incremental Purchase, the Agent may assume such

Purchaser has made such amount available to the Agent when due (an “Assumed

Payment”) and, in reliance upon such assumption, the Agent may (but

shall have no obligation to) make available such amount to the appropriate

Person.  If and to the extent that any

Purchaser shall not have made its Assumed Payment available to the Agent, such

Purchaser and the Seller hereby agrees to pay the Agent forthwith on demand

such unpaid portion of such Assumed Payment up to the amount of funds actually

paid by the Agent, together with interest thereon for each day from the date of

such payment by the Agent until the date the requisite amount is repaid to the

Agent, at a rate per annum equal to the Federal Funds Rate plus 2%.

 

Section 8.6.           Notice

of Termination Events.  The Agent shall not be deemed to have

knowledge or notice of the occurrence of any Potential Termination Event unless

the Agent has received notice from any Purchaser or the Seller stating that a

Potential Termination Event has occurred hereunder and describing such

Potential Termination Event.  The Agent

shall take such action concerning a Potential Termination Event as may be

directed by the Instructing Group (or, if required for such action, all of the

Purchasers), but until the Agent receives such directions, as between the Agent

and Purchasers, the Agent may (but shall not be obligated to) take such action,

or refrain from taking such action, as the Agent deems advisable and in the

best interests of the Purchasers.

Section 8.7.           Non-Reliance on Agent and Other

Purchasers.  Each Purchaser expressly acknowledges that

neither the Agent nor any of its officers, directors, employees, agents,

attorneys-in-fact or Affiliates has made any representations or warranties to

it and that no act by the Agent hereafter taken, including any review of the

affairs of the Seller or any Seller Entity, shall be deemed to constitute any

representation or warranty by the Agent. 

Each Purchaser represents and warrants to the Agent that, independently and

without reliance upon the Agent or any other Purchaser and based on such

documents and information as it has deemed appropriate, it has made and will

continue to make its own appraisal of and investigation into the business,

operations, property, prospects, financial and other conditions and

creditworthiness of the Seller, the Seller Entities, and the Receivables and

its own decision to enter into this Agreement and to take, or omit, action

under any Transaction Document.  The

Agent shall deliver each month to any Purchaser that so requests a copy of the

Periodic Report(s) received covering the preceding Settlement Period.  Except for items specifically required to be

delivered hereunder, the Agent shall not have any duty or responsibility to

provide any Purchaser with any information concerning the Seller, any Seller

Entity or any of their Affiliates that comes into the possession of the Agent

or any of its officers, directors, employees, agents, attorneys-in-fact or

Affiliates.

 

Section 8.8.           Agent and

Affiliates.  The Agent and its Affiliates may extend

credit to, accept deposits from and generally engage in any kind of business

with the Seller, any Seller Entity or any of their Affiliates and, in its role

as a Committed Purchaser, ABN AMRO may exercise or refrain from exercising its

rights and powers as if it were not the Agent. 

The parties acknowledge that ABN AMRO acts as agent for Amsterdam and

subagent for Amsterdam’s management company in various capacities, as well as

providing credit facilities and other support for Amsterdam not contained in

the Transaction Documents.

 

Section 8.9.           Indemnification.  Each Committed Purchaser shall indemnify and

hold harmless the Agent and its officers, directors, employees, representatives

and agents (to the extent not reimbursed by the Seller or any Seller Entity and

without limiting the obligation of the Seller or any Seller Entity to do so),

ratably in accordance with its Ratable Share from and against any and all

liabilities, obligations, losses, damages, penalties, judgments, settlements,

costs, expenses and disbursements of any kind whatsoever (including in

connection with any investigative or threatened proceeding, whether or not the

Agent or such Person shall be designated a party thereto) that may at any time

be imposed on, incurred by or asserted against the Agent or such Person as a

result of, or related to, any of the transactions contemplated by the

Transaction Documents or the execution, delivery or performance of the

Transaction Documents or any other document furnished in connection therewith

(but excluding any such liabilities, obligations, losses, damages, penalties,

judgments, settlements, costs, expenses or disbursements resulting solely from

the gross negligence or willful misconduct of the Agent or such Person as

finally determined by a court of competent jurisdiction).

 

Section 8.10.        Successor Agent.  The Agent may, upon at least five (5) days

notice to the Seller and each Purchaser, resign as Agent.  Such resignation shall not become effective

until a successor agent is appointed by an Instructing Group and has accepted

such appointment.  Upon such acceptance

of its appointment as Agent hereunder by a successor Agent, such successor

Agent shall succeed to and become vested with all the rights and duties of the

retiring Agent, and the retiring Agent shall be discharged from its duties and

obligations under the Transaction Documents. 

After any retiring Agent’s resignation hereunder, the provisions of

Article VI and this Article VIII shall inure to its benefit as to any actions

taken or omitted to be taken by it while it was the Agent.  Prior to the occurrence of a Termination

Event, any successor Agent shall be subject to Seller’s reasonable approval.

 

Article IX

 

Miscellaneous

 

Section 9.1.           Termination.  Amsterdam shall cease to be a party hereto

when the Amsterdam Termination Date has occurred, Amsterdam holds no Investment

and all amounts payable to it hereunder have been indefeasibly paid in full.  This Agreement shall terminate following the

Liquidity Termination Date when no Investment is held by a Purchaser and all

other amounts payable hereunder have been indefeasibly paid in full, but the

rights and remedies of the Agent and each Purchaser under Article VI and

Section 8.9 shall survive such termination.

 

Section 9.2.           Notices.  Unless otherwise specified, all notices and

other communications hereunder shall be in writing (including by telecopier or

other facsimile communication), given to the appropriate Person at its address

or telecopy number set forth on the signature pages hereof or at such other

address or telecopy number as such Person may specify, and effective when

received at the address specified by such Person.  Each party hereto, however, authorizes the Agent to act on

telephone notices of Purchases and Discount Rate and Tranche Period selections

from any person the Agent in good faith believes to be acting on behalf of the

relevant party and, at the Agent’s option, to tape record any such telephone

conversation.  Each party hereto agrees

to deliver promptly a confirmation of each telephone notice given or received

by such party (signed by an authorized officer of such party), butthe

absence of such confirmation shall not affect the validity of the telephone

notice.  The number of days for any

advance notice required hereunder may be waived (orally or in writing) by the

Person receiving such notice.

 

Section 9.3.           Payments

and Computations.  Notwithstanding anything herein to the

contrary, any amounts to be paid or transferred by the Seller or the Collection

Agent to, or for the benefit of, any Purchaser or any other Person shall be

paid or transferred to the Agent (for the benefit of such Purchaser or other

Person).  The Agent shall promptly (and,

if reasonably practicable, on the day it receives such amounts) forward each

such amount to the Person entitled thereto and such Person shall apply the

amount in accordance herewith.  All

amounts to be paid or deposited hereunder shall be paid or transferred on the

day when due in immediately available Dollars (and, if due from the Seller or

Collection Agent, by 11:00 a.m. (Chicago time), with amounts received

after such time being deemed paid on the Business Day following such

receipt).  The Seller hereby authorizes

the Agent to debit the Seller Account for application to any amounts owed by

the Seller hereunder.  The Seller shall,

to the extent permitted by law, pay to the Agent upon demand, for the account

of the applicable Person, interest on all amounts not paid or transferred by

the Seller or the Collection Agent when due hereunder at a rate equal to the

Prime Rate plus 2%, calculated from the date any such amount became due until

the date paid in full.  Any payment or

other transfer of funds scheduled to be made on a day that is not a Business

Day shall be made on the next Business Day, and any Discount Rate or interest

rate accruing on such amount to be paid or transferred shall continue to accrue

to such next Business Day.  All

computations of interest, fees, Discount and Funding Charges shall be

calculated for the actual days elapsed based on a 360 day year.

 

Section 9.4.           Sharing

of Recoveries.  Each Purchaser agrees that if it receives

any recovery, through set-off, judicial action or otherwise, on any amount

payable or recoverable hereunder in a greater proportion than should have been

received hereunder or otherwise inconsistent with the provisions hereof, then

the recipient of such recovery shall purchase for cash an interest in amounts

owing to the other Purchasers (as return of Investment or otherwise), without

representation or warranty except for the representation and warranty that such

interest is being sold by each such other Purchaser free and clear of any

Adverse Claim created or granted by such other Purchaser, in the amount necessary

to create proportional participation by the Purchasers in such recovery (as if

such recovery were distributed pursuant to Section 2.3).  If all or any portion of such amount is

thereafter recovered from the recipient, such purchase shall be rescinded and

the purchase price restored to the extent of such recovery, but without

interest.

 

Section 9.5.           Right of Setoff.  During a Termination Event, each Purchaser

is hereby authorized (in addition to any other rights it may have) to setoff,

appropriate and apply (without presentment, demand, protest or other notice

which are hereby expressly waived) any deposits and any other indebtedness held

or owing by such Purchaser (including by any branches or agencies of such

Purchaser) to, or for the account of, the Seller against amounts owing by the

Seller hereunder (even if contingent or unmatured).

 

Section 9.6.           Amendments.  Except as otherwise expressly provided

herein, no amendment or waiver hereof shall be effective unless signed by the

Seller and the Instructing Group.  In

addition, no amendment of any Transaction Document shall, without the consent

of (a) all the Committed Purchasers, (i) extend the Liquidity

Termination Date or the date of any payment or transfer of Collections by the

Seller to the Collection Agent or by the Collection Agent to the Agent,

(ii) reduce the rate or extend the time of payment of Discount for any

Eurodollar Tranche or Prime Tranche, (iii) reduce or extend the time of

payment of any fee payable to the Committed Purchasers, (iv) except as

provided herein, release, transfer or modify any Committed Purchaser’s Purchase

Interest or change any Commitment, (v) amend the definition of Required

Committed Purchasers, Instructing Group, Termination Event or Section 1.1,

1.2, 1.5, 2.1, 2.2, 2.3, 7.2 or 9.6, Article VI, or any provision ofthe

Limited Guaranty, (vi) consent to the assignment or transfer by the Seller

or the Originators of any interest in the Receivables other than transfers

under the Transaction Documents or permit any Seller Entity to transfer any of

its obligations under any Transaction Document except as expressly contemplated

by the terms of the Transaction Documents, or (vii) amend any defined term

relevant to the restrictions in clauses (i) through (vi) in a manner which

would circumvent the intention of such restrictions or (b) the Agent,

amend any provision hereof if the effect thereof is to affect the indemnities

to, or the rights or duties of, the Agent or to reduce any fee payable for the

Agent’s own account.  Notwithstanding

the foregoing, the amount of any fee or other payment due and payable from the

Seller to the Agent (for its own account) or Amsterdam may be changed or

otherwise adjusted solely with the consent of the Seller and the party to which

such payment is payable.  Any amendment

hereof shall apply to each Purchaser equally and shall be binding upon the

Seller, the Purchasers and the Agent.

 

Section 9.7.           Waivers.  No failure or delay of the Agent or any

Purchaser in exercising any power, right, privilege or remedy hereunder shall

operate as a waiver thereof, nor shall any single or partial exercise of any

such power, right, privilege or remedy preclude any other or further exercise

thereof or the exercise of any other power, right, privilege or remedy.  Any waiver hereof shall be effective only in

the specific instance and for the specific purpose for which such waiver was

given.  After any waiver, the Seller,

the Purchasers and the Agent shall be restored to their former position and

rights and any Potential Termination Event waived shall be deemed to be cured

and not continuing, but no such waiver shall extend to (or impair any right

consequent upon) any subsequent or other Potential Termination Event.  Any additional Discount that has accrued

after a Termination Event before the execution of a waiver thereof, solely as a

result of the occurrence of such Termination Event, may be waived by the Agent

at the direction of the Purchaser entitled thereto or, in the case of Discount

owing to the Committed Purchasers, of the Required Committed Purchasers.

 

Section 9.8.           Successors

and Assigns; Participations; Assignments.

 

(a)           Successors

and Assigns.  This Agreement

shall be binding upon and inure to the benefit of the parties hereto and their

respective successors and assigns. 

Except as otherwise provided herein, the Seller may not assign or

transfer any of its rights or delegate any of its duties without the prior

consent of the Agent and the Purchasers.

 

(b)           Participations.

 Any Purchaser may sell to

one or more Persons (each a “Participant”) participating interests in

the interests of such Purchaser hereunder and under the Transfer

Agreement.  Such Purchaser shall remain

solely responsible for performing its obligations hereunder, and the Seller and

the Agent shall continue to deal solely and directly with such Purchaser in

connection with such Purchaser’s rights and obligations hereunder and under the

Transfer Agreement.  Each Participant

shall be entitled to the benefits of Article VI and shall have the right of

setoff through its participation in amounts owing hereunder and under the

Transfer Agreement to the same extent as if it were a Purchaser hereunder and

under the Transfer Agreement, which right of setoff is subject to such

Participant’s obligation to share with the Purchasers as provided in

Section 9.4.  A Purchaser shall not

agree with a Participant to restrict such Purchaser’s right to agree to any

amendment hereto or to the Transfer Agreement, except amendments described in

clause (a) of Section 9.6.  Any

Participant may not be a direct or indirect competitor of any Seller Entity and

shall agree to be bound by a confidentiality agreement substantively identical

to that set forth in Section 9.10.

 

(c)           Assignments

by Committed Purchasers.  Any

Committed Purchaser may assign to one or more financial institutions (“Purchasing

Committed Purchasers”), acceptable to the Agent in its sole

discretion, any portion of its Commitment as a Committed Purchaser hereunder

and under the Transfer Agreement and Purchase Interest pursuant to a supplement

hereto and to the Transfer Agreement (a “Transfer Supplement”) in form

satisfactory to the Agent executed by each such Purchasing Committed Purchaser,

such selling Committed Purchaser and the Agent.  Prior to the occurrence of a Termination Event, any such

assignment shall require the prior written consent of the Seller which shall

not be unreasonably withheld.  Any such

assignment by a Committed Purchaser must be for an amount of at least Five

Million Dollars.  Each Purchasing

Committed Purchaser shall pay a fee of Three Thousand Dollars to the

Agent.  Any partial assignment shall be

an assignment of an identical percentage of such selling Committed Purchaser’s

Investment and its Commitment as a Committed Purchaser hereunder and under the

Transfer Agreement.  Upon the execution

and delivery to the Agent of the Transfer Supplement and payment by the

Purchasing Committed Purchaser to the selling Committed Purchaser of the agreed

purchase price, such selling Committed Purchaser shall be released from its

obligations hereunder and under the Transfer Agreement to the extent of such

assignment and such Purchasing Committed Purchaser shall for all purposes be a

Committed Purchaser party hereto and shall have all the rights and obligations

of a Committed Purchaser hereunder to the same extent as if it were an original

party hereto and to the Transfer Agreement with a Commitment as a Committed

Purchaser, any Investment and any related Assigned Amsterdam Settlement

described in the Transfer Supplement.

 

(d)           Replaceable

Committed Purchasers.  If any

Committed Purchaser other than ABN AMRO (a “Replaceable Committed Purchaser”) shall

(i) petition the Seller for any amounts under Section 6.2 or (ii)

have a short-term debt rating lower than the “A-1” by S&P and “P-1”

by Moody’s, the Seller or Amsterdam may designate a replacement financial

institution (a “Replacement Committed Purchaser”) reasonably acceptable to

the Agent and, prior to the occurrence of a Termination Event, consented to by

the Seller (which consent shall not be unreasonably withheld, it being deemed

reasonable, without limitation, for the Seller not to consent to a proposed

Replacement Committed Purchaser that is a direct or indirect competitor of any

Seller Entity or that has not agreed to be bound by a confidentiality agreement

substantively identical to that set forth in Section 9.10), to which such

Replaceable Committed Purchaser shall, subject to its receipt of an amount

equal to its Investment, any related Assigned Amsterdam Settlement, and accrued

Discount and fees thereon (plus, from the Seller, any Early Payment Fee that

would have been payable if such transferred Investment had been paid on such

date) and all amounts payable under Section 6.2, promptly assign all of

its rights, obligations and Commitment hereunder and under the Transfer

Agreement, together with all of its Purchase Interest, and any related Assigned

Amsterdam Settlement, to the Replacement Committed Purchaser in accordance with

Section 9.8(c).

 

(e)           Assignment

by Amsterdam.  Each party

hereto agrees and consents (i) to Amsterdam’s assignment, participation,

grant of security interests in or other transfers of any portion of, or any of

its beneficial interest in, the Amsterdam Purchase Interest and the Amsterdam

Settlement and (ii) to the complete assignment by Amsterdam of all of its

rights and obligations hereunder to ABN AMRO or any other Person, and upon such

assignment Amsterdam shall be released from all obligations and duties

hereunder to the extent accruing thereafter; provided, however, that

Amsterdam may not, without the prior consent of the Required Committed

Purchasers and, prior to the occurrence of a Termination Event, the Seller,

which consent of the Seller shall not be unreasonably withheld, transfer any of

its rights hereunder or under the Transfer Agreement unless the assignee

(i) is a corporation whose principal business is the purchase of assets

similar to the Receivables, (ii) has ABN AMRO as its administrative agent

and (iii) issues commercial paper with credit ratings substantially

identical to the Ratings.  Amsterdam

shall promptly notify each party hereto of any such assignment.  Upon such an assignment of any portion of

Amsterdam’s Purchase Interest and the Amsterdam Settlement, the assignee shall

have all of the rights of Amsterdam hereunder relate to such Amsterdam Purchase

Interest and Amsterdam Settlement.  Any

such assignee may not be a direct or indirect competitor of any Seller Entity

and shall agree to be bound by a confidentiality agreement substantively

identical to that set forth in Section 9.10.

 

(f)            Opinions of

Counsel.  If required by the

Agent or to maintain the Ratings, each Transfer Supplement must be accompanied

by an opinion of counsel of the assignee as to such matters as the Agent may

reasonably request.  The Seller shall

not be responsible for the cost of any such opinion.

 

Section 9.9.           Intended

Tax Characterization.  It is the intention of the parties hereto

that, for the purposes of all Taxes, the transactions contemplated hereby shall

be treated as a loan by the Purchasers (through the Agent) to the Seller that

is secured by the Receivables (the “Intended Tax Characterization”).  The parties hereto agree to report and

otherwise to act for the purposes of all Taxes in a manner consistent with the

Intended Tax Characterization.

 

Section 9.10.        Confidentiality. 

The parties hereto agree to hold the Transaction Documents or

any other confidential or proprietary information received in connection

therewith in confidence and agree not to provide any Person with copies of any

Transaction Document or such other confidential or proprietary information

other than to (i) any officers, directors, members, managers, employees or

outside accountants, auditors or attorneys thereof, (ii) any prospective or

actual assignee or participant which is not a direct or indirect competitor of

any Seller Entity and which (in each case) has signed a confidentiality

agreement containing provisions substantively identical to this Section, (iii)

any rating agency, (iv) any surety, guarantor or credit or liquidity enhancer

to the Agent or any Purchaser which (in each case) has signed a confidentiality

agreement substantially in the form of the confidentiality agreement signed by

the Agent prior to the date hereof, (v) any entity organized to loan, or make

loans secured by, financial assets for which ABN AMRO provides managerial

services or acts as an administrative agent which (in each case) has signed a

confidentiality agreement substantially in the form of the confidentiality

agreement signed by the Agent prior to the date hereof, (vi) Amsterdam’s

administrator, management company, referral agents, issuing agents or

depositaries or CP Dealers and (vii) Governmental Authorities with appropriate

jurisdiction.  Notwithstanding the above

stated obligations, provided that the other parties hereto are

given notice of the intended disclosure or use, the parties hereto will not be

liable for disclosure or use of such information which such Person can

establish by tangible evidence: (i) was required by law, including pursuant to

a valid subpoena or other legal process, (ii) was rightfully in such Person’s

possession or known to such Person prior to receipt or (iii) is or becomes

known to the public through disclosure in a printed publication (without breach

of any of such Person’s obligations hereunder).

 

Section 9.11.        Agreement

Not to Petition.  Each party hereto agrees, for the benefit of

the holders of the privately or publicly placed indebtedness for borrowed money

for Amsterdam, not, prior to the date which is one (1) year and one (1) day

after the payment in full of all such indebtedness, to acquiesce, petition or

otherwise, directly or indirectly, invoke, or cause Amsterdam to invoke, the

process of any Governmental Authority for the purpose of (a) commencing or

sustaining a case against Amsterdam under any federal or state bankruptcy,

insolvency or similar law (including the Federal Bankruptcy Code), (b)

appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator

or other similar official for Amsterdam, or any substantial part of its

property, or (c) ordering the winding up or liquidation of the affairs of

Amsterdam.

 

Section 9.12.        Excess Funds.  Other than amounts payable under

Section 9.4, Amsterdam shall be required to make payment of the amounts

required to be paid pursuant hereto only if Amsterdam has Excess Funds (as

defined below).  If Amsterdam does not

have Excess Funds, the excess of the amount due hereunder (other than pursuant

to Section 9.4) over the amount paid shall not constitute a “claim”

(as defined in Section 101(5) of the Federal Bankruptcy Code) against

Amsterdam until such time as Amsterdam has Excess Funds.  If Amsterdam does not have sufficient Excess

Funds to make any payment due hereunder (other than pursuant to

Section 9.4), then Amsterdam may pay a lesser amount and make additional

payments that in the aggregate equal the amount of deficiency as soon as

possible thereafter.  The term “Excess

Funds” means the excess of (a) the aggregate projected value of

Amsterdam’s assets and other property (including cash and cash equivalents),

over (b) the sum of (i) the sum of all scheduled payments of principal,

interest and other amounts payable on publicly or privately placed indebtedness

of Amsterdam for borrowed money, plus (ii) the sum of all other liabilities,

indebtedness and other obligations of Amsterdam for borrowed money or owed to

any credit or liquidity provider, together with all unpaid interest then

accrued thereon, plus (iii) all taxes payable by Amsterdam to the Internal

Revenue Service, plus (iv) all other indebtedness, liabilities and obligations

of Amsterdam then due and payable, but the amount of any liability,

indebtedness or obligation of Amsterdam shall not exceed the projected value of

the assets to which recourse for such liability, indebtedness or obligation is

limited.  Excess Funds shall be

calculated once each Business Day.

 

Section 9.13.        No Recourse.  The obligations of Amsterdam, its management

company, its administrator and its referral agents (each a “Program Administrator”)

under any Transaction Document or other document (each, a “Program Document”) to which

a Program Administrator is a party are solely the corporate obligations of such

Program Administrator and no recourse shall be had for such obligations against

any Affiliate, director, officer, member, manager, employee, attorney or agent

of any Program Administrator.

 

Section 9.14.        Headings;

Counterparts.  Article and Section Headings in this Agreement

are for reference only and shall not affect the construction of this

Agreement.  This Agreement may be

executed by different parties on any number of counterparts, each of which

shall constitute an original and all of which, taken together, shall constitute

one and the same agreement.

 

Section 9.15.        Cumulative

Rights and Severability.  All rights and remedies of the Purchasers

and Agent hereunder shall be cumulative and non-exclusive of any rights or

remedies such Persons have under law or otherwise.  Any provision hereof that is prohibited or unenforceable in any

jurisdiction shall, in such jurisdiction, be ineffective to the extent of such

prohibition or unenforceability without invalidating the remaining provisions

hereof and without affecting such provision in any other jurisdiction.

 

Section 9.16.        Governing

Law; Submission to Jurisdiction.  This Agreement shall be

governed by, and construed in accordance with, the internal laws (and not the

law of conflicts) of the State of New York. 

The Seller hereby submits to the nonexclusive jurisdiction of the United

States District Court for the Southern District of New York and of any New York

state court sitting in Manhattan for purposes of all legal proceedings arising

out of, or relating to, the Transaction Documents or the transactions

contemplated thereby.  The Seller

hereby irrevocably waives, to the fullest extent permitted by law, any

objection it may now or hereafter have to the venue of any such proceeding and

any claim that any such proceeding has been brought in an inconvenient

forum.  Nothing in this

Section 9.16 shall affect the right of the Agent or any Purchaser to bring

any action or proceeding against the Seller or its property in the courts of

other jurisdictions.

 

Section 9.17.        Waiver of

Trial by Jury. 

To the extent permitted by applicable law, each party hereto irrevocably

waives all right of trial by jury in any action, proceeding or counterclaim

arising out of, or in connection with, any transaction document or any matter

arising thereunder.

 

Section 9.18.        Entire Agreement.  The Transaction Documents constitute the

entire understanding of the parties thereto concerning the subject matter

thereof.  Any previous or

contemporaneous agreements, whether written or oral, concerning such matters

are superseded thereby.

 

Section 9.19.        Appointment

for Service of Process.  (a) The Seller has (or will within 30 days

of the date hereof) irrevocably appointed CT Corporation System, with an office

on the date hereof at 111 Eighth Avenue, New York, New York  10011 as its agent to receive, accept and

acknowledge for and on its behalf, service of any and all legal process,

summons, notices and documents which may be served in any such proceeding

brought in any such court which may be made on such agent and will pay such

agent’s fees when due.  If for any

reason such agent shall cease to be available to act as such, the Seller agrees

to designate a new agent in the State of New York on the terms satisfactory to

the Agent and will pay such agent’s fees when due.

 

(b)           To

the fullest extent it may legally and effectively do so, each party to this

Agreement irrevocably consents to service of process in the manner provided for

notices in Section 9.2 hereof. 

Nothing in this Agreement will affect the right of any party to this

Agreement to serve process in any other manner permitted by law.

 

Section 9.20.        Payments

in Relevant Currency.  All payments to be made by the Seller

hereunder shall be made in Dollars (the “relevant currency”).  To the fullest extent permitted by law, the

obligation of the Seller in respect of any amount due in the relevant currency

under this Agreement shall, notwithstanding any payment in any other currency

(whether pursuant to a judgment or otherwise), be discharged only to the extent

of the amount in the relevant currency that each Purchaser or the Agent may, in

accordance with normal banking procedures, purchase with the sum paid in such

other currency (after any premium and costs of exchange) on the Business Day

immediately following the day on which the Purchaser or Agent, as applicable,

receives such payment.  If the amount in

the relevant currency that may be so purchased for any reason falls short of

the amount originally due, the Seller shall pay such additional amounts, in the

relevant currency, as may be necessary to compensate for the shortfall.  Any obligations of the undersigned not

discharged by such payment shall, to the fullest extent permitted by applicable

law, be due as a separate and independent obligation and, until discharged as

provided herein, shall continue in full force and effect.

 

In

Witness Whereof, the parties hereto

have caused this Agreement to be executed and delivered by their duly

authorized officers as of the date hereof.

 

	

   

  	

   

  
	

  ABN AMRO Bank

  N.V., as the Agent

  	

  ABN AMRO Bank

  N.V., as the Committed

  Purchaser

  
	

   

  	

   

  
	

   

  	

   

  
	

  By

  	

   

  	

   

  	

  By

  	

   

  
	

  Title

  	

   

  	

   

  	

  Title

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  By

  	

   

  	

   

  	

  By

  	

   

  
	

  Title

  	

   

  	

   

  	

  Title

  	

   

  
	

  Address:

  	

  Structured Finance,

  	

  Address:

  	

  Structured Finance,

  
	

   

  	

  Asset Securitization

  	

   

  	

  Asset Securitization

  
	

   

  	

  135 South LaSalle Street

  	

   

  	

  135 South LaSalle Street

  
	

   

  	

  Chicago, Illinois  60674-9135

  	

   

  	

  Chicago, Illinois  60674-9135

  
	

   

  	

  Attention:

  	

  Purchaser Agent–

  	

   

  	

  Attention:

  	

  Administrator-

  
	

   

  	

   

  	

  Amsterdam

  	

   

  	

   

  	

  Amsterdam

  
	

  Telephone:

  	

  (312) 904-6263

  	

  Telephone:

  	

  (312) 904-6263

  
	

  Telecopy:

  	

  (312) 904-6376

  	

  Telecopy:

  	

  (312) 904-6376

  
	

   

  	

   

  
	

   

  	

   

  
	

  Amsterdam

  Funding Corporation

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  By

  	

   

  	

   

  	

   

  
	

  Title

  	

   

  	

   

  	

   

  
	

  Address:

  	

  c/o Global Securitization Services, LLC

  	

   

  
	

   

  	

  114 West 47th Street, Suite

  1715

  	

   

  
	

   

  	

  New York, New York  10036

  	

   

  
	

   

  	

  Attention:

  	

  Andrew Stidd

  	

   

  
	

  Telephone:

  	

  (212) 302-5151

  	

   

  
	

  Telecopy:

  	

  (212) 302-8767

  	

   

  
																	

 

 

	

   

  
	

  Albany

  International Receivables Corporation,

  as Seller

  
	

   

  
	

   

  
	

  By

  	

   

  	

   

  
	

  Title

  	

   

  	

   

  
	

  Address:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  Attention:

  	

   

  
	

  Telephone:

  	

   

  
	

  Telecopy:

  	

   

  
	

   

  
	

   

  
	

  Albany

  International Corp.,

  
	

  as Initial Collection

  Agent

  
	

   

  
	

   

  
	

  By

  	

   

  	

   

  
	

  Title

  	

   

  	

   

  
	

  Address:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  Attention:

  	

   

  
	

  Telephone:

  	

   

  
	

  Telecopy:

  	

   

  
								

 

Schedule I

 

Definitions

 

The following terms have the meanings set

forth, or referred to, below:

 

“ABN AMRO”

means ABN AMRO Bank N.V. in its individual capacity and not in its capacity as

the Agent.

 

“Adjusted Dilution Ratio”

at any time means the 12-month rolling average of the Dilution Ratio for the 12

Settlement Periods then most recently ended.

 

“Adverse Claim”

means, for any asset or property of a Person, a lien, security interest,

charge, mortgage, pledge, hypothecation, assignment or encumbrance, or any

other right or similar claim, in, of or on such asset or property in favor of

any other Person, except those created by the Transaction Documents.

 

“Affiliate”

means, for any Person, any other Person which, directly or indirectly, is in

control of, is controlled by, or is under common control with such Person.  For purposes of this definition, “control”

means the power, directly or indirectly, to either (i) vote ten percent

(10%) or more of the securities having ordinary voting power for the election

of directors of a Person or (ii) cause the direction of the management and

policies of a Person.

 

“Agent” is defined in the first

paragraph hereof.

 

“Agent’s Account”

means the account designated to the Seller and the Purchasers by the Agent.

 

“Aggregate Commitment”

means $51,000,000, as  such  amount  

may be reduced pursuant to Section 1.6.

 

“Aggregate Investment”

means the sum of the Investments of all Purchasers.

 

“Aggregate Reserve”

means, at any time at which such amount is calculated, the sum of the Loss

Reserve, Dilution Reserve, Discount Reserve and Canadian Currency Reserve.

 

“Amsterdam” is

defined in the first paragraph hereof.

 

“Amsterdam Funding Source”

means any Committed Purchaser and any provider or program credit enhancement

for Amsterdam.

 

“Amsterdam Settlement”

means the sum of all claims and rights to payment pursuant to Section 1.5

or 1.7 or any other provision owed to Amsterdam (or owed to the Agent or the

Collection Agent for the benefit of Amsterdam) by the Seller that, if paid,

would be applied to reduce Amsterdam’s Investment.

 

“Amsterdam Termination Date”

means the earlier of (a) the Business Day designated by Amsterdam at any time

to the Seller and (b) the Liquidity Termination Date.

 

“Assigned Amsterdam Settlement”

is defined in the Transfer Agreement.

 

“Bankrupt Obligor”

means any of the Obligors listed on Exhibit J.

 

“Bankruptcy Event”

means, for any Person, that (a) such Person makes a general assignment for

the benefit of creditors or any proceeding is instituted by or against such

Person seeking to adjudicate it bankrupt or insolvent, or seeking the

liquidation, winding up, reorganization, arrangement, adjustment, protection,

relief or composition of it or its debts under any law relating to bankruptcy,

insolvency or reorganization or relief of debtors and, if instituted against

such Person, such proceeding remains undismissed and unstayed for a period of

30 days, or seeking the entry of an order for relief or the appointment of

a receiver, trustee or other similar official for it or any substantial part of

its property or such Person generally does not pay its debts as such debts

become due or admits in writing its inability to pay its debts generally or

(b) such Person takes any corporate action to authorize any such action.

 

“Business Day”

means any day other than (a) a Saturday, Sunday or other day on which banks in

New York City, New York or Chicago, Illinois are authorized or required to

close, (b) a holiday on the Federal Reserve calendar and, (c) solely for

matters relating to a Eurodollar Tranche, a day on which dealings in Dollars

are not carried on in the London interbank market.

 

“Canadian Currency Reserve”

means an amount equal to the Canadian Currency Reserve Percentage multiplied by

the Outstanding Balance of Eligible Receivables payable in Canadian dollars as

shown on the most recent Periodic Report.

 

“Canadian Currency Reserve Percentage”

means, at any time, the quotient obtained by dividing (i) the difference

between the highest and lowest Exchange Rates for the most recent 12 calendar

months, by (ii) the Exchange Rate currently in effect.

 

“Canadian Obligor”

means an Obligor that is a resident of, or organized under the laws of, Canada

or any province or territory thereof.

 

“Canadian Originators”

means M & I Door Systems Ltd. and Albany International Canada

Inc.

 

“Change in Control”

means (a) the ownership, directly or indirectly, beneficially or of

record, by any Person or group (within the meaning of the Securities Exchange

Act of 1934 and the rules of the Securities and Exchange Commission thereunder

as in effect on the date hereof) other than Permitted Shareholders, of shares

representing more than 30% of the aggregate ordinary voting power represented

by the issued and outstanding capital stock of the Parent at a time when

Permitted Shareholders together do not have the unrestricted power directly or

indirectly to vote or direct the vote of shares representing more than 50% of

such aggregate ordinary voting power, (b) occupation of the majority of

the seats (other than vacant seats) on the board of directors of the Parent by

Persons who were neither (i) nominated by the board of directors of the

Parent nor (ii) appointed by directors so nominated, or (c) the

occurrence of any “change of control” or similar event, however denominated,

resulting in an obligation on the part of the Parent or any Subsidiary of the

Parent to repay, redeem or repurchase, or to offer to repay, redeem or

repurchase any indebtedness for borrowed money of the Parent or any Subsidiary

of the Parent in an aggregate principal amount in excess of $10,000,000.  Notwithstanding the foregoing, a Change of

Control shall be deemed not to occur solely as a result of a restructuring

which installs a newly formed holding company as the sole shareholder of Parent

(which holding company must also hold, directly or indirectly, 100% of the

ownership interests in the Seller Entities), provided that, in the course

of such restructuring, the shareholders of Parent (a) receive in exchange for

their Parent shares corresponding shares of such new holding company having

relative rights and preferences identical to those of the Parent’s shares

immediately before the restructuring, and (b) receive respective percentage

ownership interests in such new holding company which are identical to their

respective percentage ownership interests in Parent immediately before the

restructuring.  After any such

restructuring, the name of such new holding company shall be substituted for

the name of Parent where it appears in this definition of Change of Control.

 

“Charge-Off”

means any Receivable that has or should have been (in accordance with the

Credit and Collection Policy) charged off or written off by the Seller.

 

“Collection”

means any amount paid, or deemed paid, on a Receivable or by the Seller as a

Deemed Collection under Section 1.5(b).

 

“Collection Agent” is

defined in Section 3.1(a).

 

“Collection Agent Fee”

is defined in Section 3.6.

 

“Collection

Agent Replacement Event” shall occur upon the

giving of written notice by Agent to Seller after any one or more of the

following has occurred (except that such event is automatic if attributable to

(e) below):

 

(a)           the Collection Agent fails to turn

over Collections or make any payment or transfer of funds in each case for

purposes of reducing Aggregate Net Investment when required to do so pursuant

to the terms of this Agreement and such failure continues unremedied for two

Business Days after notice from the Agent of such failure;

 

(b)           the Collection Agent fails to turn

over Collections for a purpose not described in clause (a) above or make

any other payment or transfer of funds it is required to make hereunder when

due and such failure continues unremedied for a period of five Business Days

after notice from the Agent of such failure;

 

(c)           the Collection Agent (or any

sub-collection agent) fails to observe or perform (i) any covenant set forth in

Section 3.2(d) or 3.3 or (ii) any other material term, covenant or

agreement under any Transaction Document and in the case of clause (ii)

any, such failure continues for five Business Days after notice from the Agent;

 

(d)           any written representation, warranty,

certification or statement made by the Collection Agent in, or pursuant to, any

Transaction Document proves to have been incorrect in any material adverse

respect when made;

 

(e)           the Collection Agent suffers a

Bankruptcy Event; or

 

(f)            for so long as the Collection Agent

is an Affiliate of the Seller, a Termination Event.

 

“Commitment”

means, for each Committed Purchaser, the amount set forth on Schedule II,

as adjusted in accordance with Sections 1.6 and 9.8.

 

“Committed Purchasers”

is defined in Section 1.1(b).

 

“Control”

means the possession, directly or indirectly, of the power to direct or cause

the direction of the management or policies of a Person, whether through the

ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings

correlative thereto.

 

“CP Dealer”

means, at any time, each Person Amsterdam then engages as a placement agent or

commercial paper dealer.

 

“CP Discount”

means, for any Discount Period, the amount of interest or discount accrued,

during such Discount Period on all the outstanding commercial paper, or portion

thereof, issued by Amsterdam to fund its Investment, including all dealer

commissions and other costs of issuing commercial paper, whether any such

commercial paper was issued specifically to fund such Investment or is

allocated, in whole or in part, to such funding.

 

“CP Rate”

means, for any CP Tranche Period, a rate per annum equal to the weighted

average of the rates at which commercial paper notes having a term equal to

such CP Tranche Period may be sold by any CP Dealer selected by Amsterdam, as

agreed between each such CP Dealer and Amsterdam.  If such rate is a discount rate, the CP Rate shall be the rate

resulting from Amsterdam’s converting such discount rate to an interest-bearing

equivalent rate.  If Amsterdam

determines that it is not able, or that it is impractical, to issue commercial

paper notes for any period of time, then the CP Rate shall be the Prime

Rate.  The CP Rate shall include all

costs and expenses to Amsterdam of issuing the related commercial paper notes,

including all dealer commissions and note issuance costs in connection

therewith.

 

“Credit Agreement”

means the Credit Agreement dated as of August 11, 1999, among the Parent,

the borrowing subsidiaries and lenders party thereto, The Chase Manhattan Bank,

as administrative agent, Chase Manhattan International Limited, as London

agent, Citibank, N.A., as syndication agent, Banc One Capital Markets, Inc., as

documentation agent, and Chase Securities Inc., as arranger, as amended and

supplemented through the date hereof, but without regard to any further

amendment, supplement, waiver or termination of any provision thereof unless

consented to by ABN AMRO as a lender under the Credit Agreement or consented to

by the Instructing Group hereunder.

 

“Credit and Collection Policy”

means the Seller’s credit and collection policy and practices relating to

Receivables attached hereto as Exhibit H.

 

“CSP Receivable”

means a Receivable for which no invoice has been issued but revenues from which

would be recognized under GAAP and that is required to be payable in full

within 365 days after the date of the delivery of the goods which give rise to

such Receivable.

 

“Deemed Collections” is

defined in Section 1.5(c).

 

“Default Ratio”

means, a fraction (expressed as a percentage), for the Settlement Period, the

numerator of which is the aggregate outstanding balance as of the end of such

Settlement Period of all Defaulted Receivables less than 121 days past the due

date plus the aggregate outstanding balance as of the end of such Settlement

Period of all Charge–Offs and the denominator of which is the amount of

sales generated during the month that ended four months prior to the last day

of such Settlement Period.

 

“Defaulted Receivable”

means any Receivable (a) on which any amount is unpaid more than 90 days past

its original due date or (b) the Obligor on which has suffered a Bankruptcy

Event.

 

“Delinquency Ratio”

means, the ratio (expressed as a percentage), for any Settlement Period of (a)

the aggregate outstanding balance of all Delinquent Receivables as of the end

of such Settlement Period to (b) the sum of the aggregate outstanding balance

of all Receivables (other than Receivables for which no invoice has been

issued) as of the end of such Settlement Period.

 

“Delinquent Receivable”

means any Receivable (other than a Charge-Off or Defaulted Receivable) on which

any amount is unpaid more than 60 days after the invoice therefor.

 

“Designated Financial Officer”

means the Controller, the Assistant Controller, Treasurer, Assistant Treasurer,

any Vice President or the President of the Seller or the relevant Seller

Entity, as applicable.

 

“Dilution” means,

for any Settlement Period, the amount Deemed Collections deemed to be received

during such Settlement Period pursuant to Section 1.5(b).

 

“Dilution Horizon Ratio”

means, on any Settlement Date, an amount calculated by dividing (a) cumulative

sales generated during the two most recent Settlement Periods by (b) the

Eligible Receivables Balance as of the end of the most recent Settlement

Period.

 

“Dilution Ratio”

means, as of any Settlement Date, a percentage equal to a fraction, the

numerator of which is the total amount of decreases in Outstanding Balances due

to Dilutions during the most recent Settlement Period, and the denominator of

which is the amount of sales generated during the Settlement Period one month

prior to the most recent Settlement Period.

 

“Dilution Reserve”

means, as of any Settlement Date, the amount obtained by multiplying (A) a

percentage equal to the product of (x) the sum of  (i) 2.0 times the Adjusted Dilution Ratio, plus (ii) the Dilution

Volatility Component, multiplied by (y) the Dilution Horizon Ratio by (B) the

Eligible Receivables Balance as of the end of the most recent Settlement

Period.

 

“Dilution Volatility Component”

means, as of any Settlement Date, an amount (expressed as a percentage) equal

to the product of (i) the difference between (a) the highest three month

average Dilution Ratio for any three consecutive calendar months ending during

the preceding 12 Settlement Periods and (b) the Adjusted Dilution Ratio, and

(ii) a fraction, the numerator of which is equal to the amount calculated in

(i)(a) of this definition and the denominator of which is equal to the amount

calculated in (i)(b) of this definition.

 

“Discount” means,

for any Tranche Period, (a) the product of (i) the Discount Rate for such

Tranche Period, (ii) the total amount of Investment allocated to the Tranche

Period, and (iii) the number of days elapsed during such Tranche Period divided

by (b) 360 (for Tranches other than Prime Tranches) or 365 or 366 days, as

applicable (for Prime Tranches).

 

“Discount Period”

means, with respect to any Settlement Date or the Liquidity Termination Date,

the period from and including the preceding Settlement Date (or if none, the

date that the first Incremental Purchase is made hereunder) to but not

including such Settlement Date or Liquidity Termination Date, as applicable.

 

“Discount Rate”

means, (i) for any Tranche Period relating to a CP Tranche, the CP Rate

applicable thereto, (ii) for any Tranche Period relating to a Eurodollar

Tranche, the Eurodollar Rate applicable thereto and (iii) for any Tranche

Period relating to a Prime Tranche, the Prime Rate applicable thereto.

 

“Discount Reserve”

means, at any time, the product of (a) 1.5, (b) the rate announced by ABN AMRO

as its “Prime

Rate” (which  may not be its

best or lowest rate) plus 2.00%, (c) Aggregate Investment, (d) a fraction, the

numerator of which is the average Turnover Ratio for the most recent three

Settlement Periods and the denominator of which is 365.

 

“Dollar” and

“$”

means lawful currency of the United States of America.

 

“Early Payment Fee”

means, if any Investment of a Purchaser allocated (or, in the case of a

requested Purchase not made by the Committed Purchasers for any reason other

than their improper acts or omissions, scheduled to be allocated) to a Tranche

Period for a CP Tranche or Eurodollar Tranche is reduced or terminated before

the last day of such Tranche Period with the effect that Discount then ceases

to accrue on the amount reduced or terminated (the amount of Investment so

reduced or terminated being referred to as the “Prepaid Amount”), the cost

to the relevant Purchaser of terminating or reducing such Tranche, which (a)

for a CP Tranche means any compensation payable in prepaying the related

commercial paper or, if not prepaid, any shortfall between the amount that will

be available to Amsterdam on the maturity date of the related commercial paper

from reinvesting the Prepaid Amount in Permitted Investments and the Face

Amount of such commercial paper and (b) for a Eurodollar Tranche will be

determined based on the difference between the LIBOR applicable to such Tranche

and the LIBOR applicable for a period equal (or as close as possible) to the

remaining maturity of the Tranche on the date the Prepaid Amount is received.

 

“Eligible

Receivable” means, at any time, any

Receivable:

 

(i)          the Obligor of which (a) is a resident

of, or organized under the laws of, or with its chief executive office in, the

USA or Canada; (b) is not an Affiliate of any of the parties hereto or any

other Seller Entity; (c) is not a government or a governmental subdivision or

agency; (d) has not suffered a Bankruptcy Event; (e) is a customer of the

applicable Originator in good standing; and (f) is not the Obligor of Defaulted

Receivables with an Outstanding Balance in excess of 20% of the Outstanding

Balance of all Receivables for which it is the Obligor;

 

(ii)         for which an invoice has been issued

and which is stated to be due and payable within 90 days after the invoice

therefor, except, that up to 35% of the Outstanding Balance of Eligible

Receivables may either (a) be due and payable within 365 days after the

invoice therefor or (b) be CSP Receivables;

 

(iii)        which is not a Delinquent Receivable,

Defaulted Receivable or a Charge-Off;

 

(iv)       which is an “account” or “chattel

paper” within the meaning of Section 9–105 and

Section 9–106, respectively of the UCC of all applicable

jurisdictions;

 

(v)        which is denominated and payable only in

Dollars in the USA, or in Canadian dollars in Canada;

 

(vi)       which arises under a contract, that is in

full force and effect and constitutes the legal, valid and binding obligation

of the related Obligor enforceable against such Obligor in accordance with its

terms subject to no offset, counterclaim, defense or other Adverse Claim, and

is not an executory contract or unexpired lease within the meaning of

Section 365 of the Bankruptcy Code;

 

(vii)      which arises under a contract that (a)

contains an obligation to pay a specified sum of money and is subject to no

contingencies, (b) does not require the Obligor under such contract to consent

to the transfer, sale or assignment of the rights and duties of the applicable

Originator under such contract after delivery of the goods in question, (c)

does not contain a confidentiality provision that purports to restrict any

Purchaser’s exercise of rights under this Agreement, including, without

limitation, the right to review such contract and (d) directs that payment be made

to a Lock-Box or other collection account (except that such direction need not

be made with respect to the Receivables originated by the Canadian Originators

until the 61st day following the date of this Agreement);

 

(viii)     which does not, in whole or in part,

contravene any law, rule or regulation applicable thereto (including, without

limitation, those relating to usury, truth in lending, fair credit billing,

fair credit reporting, equal credit opportunity, fair debt collection practices

and privacy); and

 

(ix)        which satisfies all applicable

requirements of the Credit and Collection Policy and was generated in the

ordinary course of the applicable Originator’s business from the sale of goods

or provision of services to a related Obligor solely by such Originator.

 

“Eligible Receivables Balance”

means, at any time, the aggregate Outstanding Balance of all Eligible

Receivables minus the sum of (i) the amount by which the Outstanding Balance of

all Eligible Receivables of such Obligor and its Affiliates exceeds the Obligor

Concentration Limit for such Obligor, and (ii) to the extent not already

included in the amounts described in clause (i) hereof, the amount by

which the aggregate Outstanding Balance of all Eligible Receivables owed by

Canadian Obligors exceeds 50% of Outstanding Balance of all Eligible

Receivables).

 

“Eurodollar Rate”

means, for any Tranche Period for a Eurodollar Tranche, the sum of (a) LIBOR

for such Tranche Period divided by 1 minus the “Reserve Requirement” plus

(b) for Investment of a Committed Purchaser, the amount specified in the Fee

Letter plus (c) during the pendency of a Termination Event, 2.00% for

Investment of a Committed Purchaser; where “Reserve Requirement” means, for any

Tranche Period for a Eurodollar Tranche, the maximum reserve requirement

imposed during such Tranche Period on “eurocurrency liabilities” as currently

defined in Regulation D of the Board of Governors of the Federal Reserve

System.

 

“Exchange Rate”

means, as of any date of determination with respect to any foreign currency in

which a Receivable is payable, (a) prior to the Liquidity Termination

Date, the amount of such currency specified by the Collection Agent in good

faith in the most recent periodic Report delivered hereunder as the amount of

such currency that would be required to purchase a US Dollar based on the

foreign exchange market for such currency, and (b) on and after the

Liquidity Termination Date, the “Exchange Rate” described in clause (a) above

as specified in the most recent Monthly Report delivered prior to the Liquidity

Termination Date that demonstrated that the Eligible Receivables Balance

exceeded the sum of the Aggregate Net Investment plus the Aggregate

Reserve.  For purposes of calculating

the Canadian Currency Reserve Percentage, the Exchange Rate for months prior to

September, 2001 shall be as set forth on Exhibit I hereto.

 

“Face Amount”

means the face amount of any Amsterdam commercial paper issued on a discount

basis or, if not issued on a discount basis, the principal amount of such note

and interest scheduled to accrue thereon to its stated maturity.

 

“Federal Funds Rate”

means for any day the greater of (i) the highest rate per annum as

determined by ABN AMRO at which overnight Federal funds are offered to ABN AMRO

for such day by major banks in the interbank market, and (ii) if ABN AMRO

is borrowing overnight funds from a Federal Reserve Bank that day, the highest

rate per annum at which such overnight borrowings are made on that day.  Each determination of the Federal Funds Rate

by ABN AMRO shall be conclusive and binding on the Seller except in the case of

manifest error.

 

“Fee Letter”

means the letter agreement dated as of the date hereof among the Seller, the

Agent, Amsterdam and the Committed Purchasers.

 

“Funding Charges”

means, for any day, the product of (i) the per annum rate (inclusive of dealer

fees and commissions) paid or payable by Amsterdam in respect of commercial

paper notes on such day that are allocated, in whole or in part, to fund or

maintain its Investment for such day, as determined by the Agent and other

costs reasonably  allocated by the

Purchaser to fund or maintain its Investment associated with the funding by

Amsterdam of small or odd lot amounts that are not funded with commercial paper

notes and (ii) Amsterdam’s Investment as of the end of such day and (iii) 1/360.

 

“GAAP” means generally

accepted accounting principles in the USA, applied on a consistent basis.

 

“Governmental Authority”

means any (a) Federal, state, municipal or other governmental entity,

board, bureau, agency or instrumentality, (b) administrative or regulatory

authority (including any central bank or similar authority) or (c) court,

judicial authority or arbitrator, in each case, whether foreign or domestic.

 

“Homer Receivable”

means an obligation of an Obligor that would otherwise be a Receivable except

that it is generated from the Parent’s plant in Homer, New York.

 

“Incremental Purchase”

is defined in Section 1.1(b).

 

“Initial Collection Agent”

is defined in the first paragraph hereof.

 

“Instructing Group”

means the Required Committed Purchasers and, unless the Amsterdam Termination

Date has occurred and Amsterdam has no Investment, Amsterdam.

 

“Intended Tax Characterization” is

defined in Section 9.9.

 

“Interim Liquidation”

means any time before the Liquidity Termination Date during which no

Reinvestment Purchases are made by any Purchaser, as established pursuant to

Section 1.2.

 

“Investment” means,

for each Purchaser, (a) the sum of (i) all Incremental Purchases by

such Purchaser and (ii) the aggregate amount of any payments or exchanges

made by, or on behalf of, such Purchaser to any other Purchaser to acquire

Investment from such other Purchaser minus (b) all Collections, amounts

received from other Purchasers and other amounts received or exchanged and, in

each case, applied by the Agent or such Purchaser to reduce such Purchaser’s

Investment.  A Purchaser’s Investment

shall be restored to the extent any amounts so received or exchanged and

applied are rescinded or must be returned for any reason.

 

“LIBOR” means, for any Tranche

Period for a Eurodollar Tranche or other time period, the rate per annum

(rounded upwards, if necessary, to the next higher one hundred-thousandth of a

percentage point) for deposits in Dollars for a period equal to such Tranche

Period or other period, which appears on Page 3750 of the Telerate Service (or

any successor page or successor service that displays the British Bankers’

Association Interest Settlement Rates for Dollar deposits) as of 11:00 a.m. (London,

England time) two Business Days before the commencement of such Tranche Period

or other period.  If for any Tranche

Period for a Eurodollar Tranche no such displayed rate is available (or, for

any other period, if such displayed rate is not available), the Agent shall

calculate such rate to be the average of the rates ABN AMRO is offered deposits

of such duration in the London interbank market at approximately 11:00 a.m.

(London, England time) two Business Days prior to the date such rate is determined.

 

“Limited Guaranty”

means the Limited Guaranty, dated the date hereof, by the Parent in favor of

the Seller.

 

“Liquidation Period”

means, for Amsterdam only, all times when Amsterdam is not making Reinvestment

Purchases pursuant to Section 1.1(d) and, for all Purchasers, all times

(x) during an Interim Liquidation and (y) on and after the Liquidity

Termination Date.

 

“Liquidity Termination Date”

means the earliest of (a) the date of the occurrence of a Termination

Event described in clause (f) of the definition of Termination Event,

(b) the date designated by the Agent to the Seller at any time after the

occurrence and during the continuation of any other Termination Event,

(c) the Business Day designated by the Seller with no less than five (5)

Business Days prior notice to the Agent and (d) September 27, 2002.

 

“Lock-Box”

means each post office box or bank box listed on Exhibit E, as revised

pursuant to Section 5.1(i).

 

“Lock-Box Account”

means each account maintained by the Collection Agent at a Lock-Box Bank for

the purpose of receiving or concentrating Collections (whether or not there is

a Lock-Box associated with such account).

 

“Lock-Box Agreement”

means each agreement between the Collection Agent and a Lock-Box Bank

concerning a Lock-Box Account.

 

“Lock-Box Bank”

means each bank listed on Exhibit E, as revised pursuant to

Section 5.1(i).

 

“Lock-Box Letter”

means a letter in substantially the form of Exhibit F (or otherwise

acceptable to the Agent) from the Seller and the Collection Agent to each Lock-Box

Bank, acknowledged and accepted by such Lock-Box Bank and the Agent.

 

“Loss Horizon Ratio”

means, at any time, a fraction (expressed as a ratio) the numerator of which is

the aggregate Outstanding Balance of Receivables generated by the Originators

during the most recent four month period and the denominator of which is the

Eligible Receivables Balance as of the last day of such period.

 

“Loss Reserve”

means, at any time, the product of (i) the greater of (a) 20.0% and (b)

two times the product of the highest average Default Ratio for any consecutive

three month period ended during the previous 12 months multiplied by the Loss

Horizon Ratio calculated at the end of such period multiplied by (ii) the

Eligible Receivables Balance at such time.

 

“Loss-to-Liquidation Ratio”

means, for any Settlement Period, the ratio (expressed as a percentage) of the

outstanding balance of Charge-Offs made during such Settlement Period to the

aggregate amount of Collections during such Settlement Period.

 

“Matured Aggregate Investment”

means, at any time, the Matured Value of Amsterdam’s Investment plus the total

Investments of all other Purchasers then outstanding.

 

“Matured Value”

means, of any Investment, the sum of such Investment and all unpaid Discount

scheduled to become due (whether or not then due) on such Investment during all

Tranche Periods to which any portion of such Investment has been allocated.

 

“Maximum Incremental Purchase Amount”

means, at any time, the lesser of (a) the difference between the Purchase

Limit and the Aggregate Investment then outstanding and (b) the difference

between the Aggregate Commitment and the Matured Aggregate Investment then

outstanding.

 

“Moody’s” means

Moody’s Investors Service, Inc.

 

“Note” means each revolving

promissory note issued by the Seller to an Originator under the Purchase

Agreement.

 

“Obligor”

means, for any Receivable, each Person obligated to pay such Receivable and

each guarantor of such obligation.

 

“Obligor Concentration Limit” means,

at any time, in relation to the aggregate Outstanding Balance of Receivables

owed by any single Obligor and its Affiliates (if any), the applicable

concentration limit shall be determined as follows for Obligors who have long

term unsecured debt ratings currently assigned to them by S&P and Moody’s,

the applicable concentration limit shall be determined according to the

following table:

 

	

  S&P

  Rating

  	

   

  	

  Moody’s

  Rating

  	

   

  	

  Allowable

  % of Eligible Receivables

  
	

  A-

  or higher

  	

   

  	

  A3

  or higher

  	

   

  	

  20.0%

  
	

  BBB

  	

   

  	

  Baa2

  	

   

  	

  12.0%

  
	

  BBB-

  	

   

  	

  Baa3

  	

   

  	

  10.0%

  
	

  Below

  BBB- or Not Rated by

  either S&P or Moody’s

  	

   

  	

  Below

  Baa3 or Not Rated

  by either S&P or Moody’s

  	

   

  	

  5.0%

  

 

;

provided,

however, that (a) if any Obligor has a split rating, the applicable

rating will be the lower of the two, (b) if any Obligor is not rated by either

S&P or Moody’s, the applicable Obligor Concentration Limit shall be the one

set forth in the last line of the table above.

 

“Originators”

means the Parent, M & I Door Systems Ltd., Albany International Canada

Inc., Albany International Techniweave, Inc., Albany International Research Co.

and Geschmay Corp.,

 

“Outstanding Balance” of

any Receivable at any time means the then outstanding principal balance

thereof.  For purposes of calculating

the Outstanding Balance of any Receivable that is payable in Canadian dollars,

such amount shall be converted into U.S. Dollars using the Exchange Rate in

effect at the time of calculation.

 

“Parent” means Albany

International Corp., a Delaware corporation.

 

“Periodic Report”

is defined in Section 3.3.

 

“Permitted Investments”

shall mean (a) evidences of indebtedness, maturing not more than thirty

(30) days after the date of purchase thereof, issued by, or the full and

timely payment of which is guaranteed by, the full faith and credit of, the

federal government of the United States of America, (b) repurchase

agreements with banking institutions or broker-dealers that are registered

under the Securities Exchange Act of 1934 fully secured by obligations of the

kind specified in clause (a) above, (c) money market funds denominated

in Dollars rated not lower than A-1 (and without the “r” symbol attached to any

such rating) by S&P and P-1 by Moody’s or otherwise acceptable to the

Rating Agencies or (d) commercial paper denominated in Dollars issued by

any corporation incorporated under the laws of the United States or any

political subdivision thereof, provided that such commercial paper is rated at

least A-1 (and without any “r” symbol attached to any such rating) thereof by

S&P and at least Prime-1 thereof by Moody’s.

 

“Permitted Shareholders”

means (a) J. Spencer Standish, (b) any of J. Spencer

Standish’s descendants or legatees, (c) any executor, personal

representative or spouse of J. Spencer Standish or any of his descendants,

(d) any corporation, trust or other entity holding voting stock of the

Parent as to which one or more of the Persons identified in the foregoing

clauses (a) through (c) have Control, (e) any trust as to which

Persons so identified in clauses (a) through (c) above hold at least 85%

of the beneficial interest in the income and principal of the trust

disregarding the interests of the contingent remaindermen and (f) any

Employee Stock Ownership Plan for the benefit of employees of the Parent.

 

“Person” means an individual,

partnership, corporation, limited liability company, association, joint

venture, Governmental Authority or other entity of any kind.

 

“Potential Termination Event”

means any Termination Event or any event or condition that with the lapse of

time or giving of notice, or both, would constitute a Termination Event.

 

“Prime Rate”

means, for any period, the daily average during such period of (a) the greater

of (i) the floating commercial loan rate per annum of ABN AMRO (which rate is a

reference rate and does not necessarily represent the lowest or best rate

actually charged to any customer by ABN AMRO) announced from time to time as

its prime rate or equivalent for Dollar loans in the USA, changing as and when

said rate changes and (ii) the Federal Funds Rate plus 0.75% plus (b) during

the pendency of a Termination Event, 2.00%.

 

“Purchase”

is defined in Section 1.1(a).

 

“Purchase Agreement”

means the Purchase and Sale Agreement dated as of the date hereof between the

Seller and the Originators.

 

“Purchase Amount”

is defined in Section 1.1(c).

 

“Purchase Date”

is defined in Section 1.1(c).

 

“Purchase Interest”

means, for a Purchaser, the percentage ownership interest in the Receivables

and Collections held by such Purchaser, calculated when and as described in

Section 1.1(a); provided, however, that (except for

purposes of computing a Purchase Interest or the Sold Interest in

Section 1.5, 1.7 and in the last sentence of both Section 2.3(a) and

Section 2.3(b)) at any time the Sold Interest would otherwise exceed 100%

each Purchaser then holding any Investment shall have its Purchase Interest

reduced by multiplying such Purchase Interest by a fraction equal to 100%

divided by the Sold Interest otherwise then in effect, so that the Sold

Interest is thereby reduced to 100%.

 

“Purchase Limit”

means $50,000,000.

 

“Purchaser Reserve Percentage”

means, for each Purchaser, the Reserve Percentage multiplied by a fraction, the

numerator of which is such Purchaser’s outstanding Investment and the

denominator of which it the Aggregate Investment.

 

“Purchasers”

means the Committed Purchasers and Amsterdam.

 

“Put” is defined in

Section 2.1(a).

 

“Ratable Share”

is defined in the Transfer Agreement.

 

“Rating Agency”

means Moody’s, S&P and any other rating agency Amsterdam chooses to rate

its commercial paper notes.

 

“Ratings”

means the ratings by the Rating Agencies of the indebtedness for borrowed money

of Amsterdam.

 

“Receivable”

means each obligation of an Obligor (other than a Bankrupt Obligor) to pay for

merchandise sold or services rendered by an Originator (other than a Homer

Receivable) and includes such Originator’s rights to payment of any interest or

finance charges and all proceeds of the foregoing.  During any Interim Liquidation and on and after the Liquidity Termination

Date, the term “Receivable” shall only include receivables existing on the

date such Interim Liquidation commenced or Liquidity Termination Date occurred,

as applicable.  Deemed Collections shall

reduce the outstanding balance of Receivables hereunder, so that any Receivable

that has its outstanding balance deemed collected shall cease to be a

Receivable hereunder after (x) the Collection Agent receives payment of such

Deemed Collections under Section 1.5(b) or (y) if such Deemed Collection

is received before the Liquidity Termination Date, an adjustment to the Sold

Interest permitted by Section 1.5(c) is made.

 

“Records” means,

for any Receivable, all contracts, books, records and other documents or

information (including computer programs, tapes, disks, software and related

property and rights) relating to such Receivable or the related Obligor.

 

“Reinvestment Purchase”

is defined in Section 1.1(b).

 

“Related Security”

means all of the applicable Originator’s rights in the merchandise (including

returned goods) and under any contracts relating to the Receivables (but only

to the extent so relating), all security interests, guaranties and property

securing or supporting payment of the Receivables, all Records and all proceeds

of the foregoing.

 

“Required Committed Purchasers”

is defined in the Transfer Agreement.

 

“Reserve Percentage” means,

at any time, the quotient obtained by dividing (a) the Aggregate Reserve by (b)

the Eligible Receivables Balance.

 

“Seller” is defined in the first

paragraph hereof.

 

“Seller Account”

means the Seller’s account designated by the Seller to the Agent in writing.

 

“Seller Entity”

means the Parent and the Originators.

 

“Settlement Date”

means the 20th day of each calendar month.

 

“Settlement Period” means

for each Settlement Date, the calendar month preceding such Settlement Date.

 

“Sold Interest”

is defined in Section 1.1(a).

 

“Special Transaction Subaccount”

means the special transaction subaccount established for this Agreement

pursuant to Amsterdam’s depositary agreement.

 

“S&P”

means Standard & Poor’s Ratings Services.

 

“Subsidiary”

means any Person of which at least a majority of the voting stock (or

equivalent equity interests) is owned or controlled by the Seller or any Seller

Entity or by one or more other Subsidiaries of the Seller or such Seller Entity.  The Subsidiaries of the Parent on the date

hereof are listed on Exhibit E.

 

“Taxes” means all taxes,

charges, fees, levies or other assessments (including income, gross receipts,

profits, withholding, excise, property, sales, use, license, occupation and

franchise taxes and including any related interest, penalties or other

additions) imposed by any jurisdiction or taxing authority (whether foreign or

domestic).

 

“Termination Date”

means (a) for Amsterdam, the Amsterdam Termination Date and (b) for

the Committed Purchasers, the Liquidity Termination Date.

 

“Termination

Event” means the occurrence of

any one or more of the following:

 

(a)         any representation, warranty,

certification or statement made by the Seller or any Seller Entity in, or

pursuant to, any Transaction Document proves to have been incorrect in any

material respect as of the date when made or deemed made (including pursuant to

Section 7.2); or

 

(b)        any Seller Entity or the Seller fails to

make any payment or other transfer of funds hereunder or under any other

Transaction Document to be applied to reduce Aggregate Net Investment when due

(including any payments under Section 1.5(a)) and such failure continues

unremedied for a period of two Business Days after notice from the Agent of

such failure; or

 

(c)         any Seller Entity or the Seller fails

to make any other payment or other transfer of funds hereunder when due and

such failure continues unremedied for a period of five Business Days after

notice from the Agent of such failure; or

 

(d)        the Seller fails to observe or perform

any covenant or agreement contained in Sections 5.1(b), 5.1(g), 5.1(i),

5.1(j), 5.1(k) or 5.1(p) of this Agreement, any Originator fails to perform any

covenant or agreement in Sections 5.1(h), (i) or (j) of the Purchase

Agreement or the Parent fails to perform any covenant or agreement in the

Limited Guaranty; or

 

(e)         the Seller or any Seller Entity fails

to observe or perform any other term, covenant or agreement under any

Transaction Document, and such failure remains unremedied for thirty days or

more after notice from the Agent of such failure; or

 

(f)         the Seller, any Seller Entity or any

Subsidiary suffers a Bankruptcy Event; or

 

(g)        the average Delinquency Ratio for the

three most recent Settlement Periods exceeds 15.0%, the average Default Ratio

for the three most recent Settlement Periods exceeds 8.0%, the average Dilution

Ratio for the three most recent Settlement Periods exceeds 5.0%, the Loss-to

Liquidation Ratio for the most recent Settlement Period exceeds 1.0% or the

average Turnover Ratio for the three most recent Settlement Periods exceeds 90

days; or

 

(h)        (i) the Seller, any Seller Entity

or any Affiliate, directly or indirectly, disaffirms or contests the validity

or enforceability of any Transaction Document or (ii) any Transaction

Document fails to be the enforceable obligation of the Seller or any Affiliate

party thereto in any material respect; or

 

(i)          any Seller Entity or any Subsidiary

fails to pay any of its indebtedness (except in aggregate principal amount of

less than $10,000,000) or defaults in the performance of any provision of any

agreement under which such indebtedness was created or is governed and such

default permits such indebtedness to be declared due and payable or to be

required to be prepaid before the scheduled maturity thereof;

 

(j)          a Change in Control shall occur or the

Parent shall fail to own and control, directly or indirectly, 100% of the

outstanding voting stock of the Seller and each Originator;

 

(k)         a Collection Agent Replacement Event

has occurred and is continuing with respect to the Initial Collection Agent; or

 

(l)          the occurrence of an “Event of

Default” under and as defined in the Credit Agreement.

 

Notwithstanding the foregoing, a failure

of a representation or warranty or breach of any covenant described in clause

(a), (d) or (e) above related to a Receivable shall not constitute a

Termination Event if the Seller has been deemed to have collected such

Receivable pursuant to Section 1.5(b) or, before the Liquidity Termination

Date, has adjusted the Sold Interest as provided in Section 1.5(c) so that

such Receivable is no longer considered to be outstanding.

 

“Tranche”

means a portion of the Investment allocated to a Tranche Period pursuant to

Section 1.3.  A Tranche is a (i) CP

Tranche, (ii) Eurodollar Tranche or (iii) Prime Tranche depending whether

Discount accrues during its Tranche Period based on a (i) CP Rate, (ii)

Eurodollar Rate, or (iii) Prime Rate.

 

“Tranche Period”

means a period of days ending on a Business Day selected pursuant to

Section 1.3, which (i) for a CP Tranche shall not exceed 270 days, (ii)

for a Eurodollar Tranche shall not exceed 180 days, and (iii) for a Prime

Tranche shall not exceed 30 days.

 

“Transaction Documents”

means this Agreement, the Fee Letter, the Limited Guaranty, the Purchase

Agreement, the Note(s), the Transfer Agreement, and all other documents,

instruments and agreements executed or furnished in connection herewith and

therewith.

 

“Transfer Agreement”

means the Amsterdam Transfer Agreement dated the date hereof between Amsterdam,

ABN AMRO Bank N.V., in its capacity as the Amsterdam Agent, Amsterdam’s Letter

of Credit Provider and a Committed Purchaser and the Other Persons who become

Committed Purchasers thereunder.

 

“Transfer Supplement” is

defined in Section 9.8.

 

“Turnover Ratio”

means, with respect to any Settlement Period, an amount, expressed in days,

obtained by multiplying (a) a fraction, (i) the numerator of which is equal to

the aggregate Outstanding Balance of the Receivables on the first day of such

Settlement Period and (ii) the denominator of which is equal to Collections on

the Receivables during such Settlement Period multiplied by (b) 30.

 

“UCC” means, for any state,

the Uniform Commercial Code as in effect in such state.

 

“USA” means the United States

of America (including all states and political subdivisions thereof).

 

“Unused Aggregate Commitment”

means, at any time, the difference between the Aggregate Commitment then in

effect and the outstanding Matured Aggregate Investment.

 

“Unused Commitment”

means, for any Committed Purchaser at any time, the difference between its

Commitment and its Investment then outstanding.

 

The foregoing definitions shall be

equally applicable to both the singular and plural forms of the defined

terms.  Unless otherwise inconsistent

with the terms of this Agreement, all accounting terms used herein shall be

interpreted, and all accounting determinations hereunder shall be made, in

accordance with GAAP.  Amounts to be

calculated hereunder shall be continuously recalculated at the time any

information relevant to such calculation changes.

 

Schedule II

 

Committed

Purchasers and Commitments of Committed Purchasers

 

	

  Name

  of Committed Purchaser

  	

  Commitment

  
	

   

  	

   

  
	

  ABN AMRO Bank N.V.

  	

  $51,000,000

  

 

 

Exhibit A

 

to

 

Receivables

Sale Agreement

 

Form

of Incremental Purchase Request

 

____________, 200_

 

ABN

AMRO Bank N.V., as Agent

Asset

Securitization, Structured Finance

135

South LaSalle Street, Suite 725

Chicago,

Illinois 60674-9135

Attn:  Purchaser Agent-Amsterdam

 

Re:          Receivables Sale Agreement dated as of

September 28, 2001 (the “Sale Agreement”) 

among

Albany International Receivables Corporation, as Seller,

Albany International

Corp., as Initial Collection Agent,

ABN AMRO Bank N.V., as

Agent,

and the Purchasers

thereunder

 

Ladies

and Gentlemen:

 

The undersigned Seller under the

above-referenced Sale Agreement hereby confirms its has requested an

Incremental Purchase of $___________ by Amsterdam under the Sale Agreement. [In the

event Amsterdam is unable or unwilling to make the requested Incremental

Purchase, the Seller hereby requests an Incremental Purchase of $____________

by the Committed Purchasers under the Sale Agreement at the [Eurodollar Rate

with a Tranche Period of _______ months.] [Prime Rate]].

 

Attached hereto as Schedule I is

information relating to the proposed Incremental Purchase required by the Sale

Agreement.  If on the date of this

Incremental Purchase Request (“Notice”), an Interim Liquidation is in

effect, this Notice revokes our request for such Interim Liquidation so that

Reinvestment Purchases shall immediately commence in accordance with

Section 1.1(d) of the Sale Agreement.

 

The Seller hereby certifies that both

before and after giving effect to [each of] the proposed Incremental Purchase[s]

contemplated hereby and the use of the proceeds therefrom, all of the

requirements of Section 7.2 of the Sale Agreement have been satisfied.

 

	

   

  	

  Very truly yours,

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Albany

  International Receivables Corporation

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

   

  	

  Title

  	

   

  

 

Schedule I

to

Incremental

Purchase Requests

 

Summary of Information Relating to Proposed Sale(s)

 

1.             Dates, Amounts, Purchaser(s), Proposed Tranche

Periods

 

A1           Date of Notice                                                                                                                                                 _________

 

A2           Measurement Date (the last

Business Day of the month

immediately preceding the

month in which the Date of

Notice occurs)                                                                                                                                                 _________

 

A3           Proposed Purchase Dates                    _________           _________             _________                  _________

(each of which is a

Business Day)

 

A4           Respective Proposed

Incremental Purchase on

each such Purchase Date                     $_________         $_________           $_________              $_________

                (each Incremental                                           (A4A)                     (A4B)                       (A4C)                     (A4D)

                Purchase must be in a

                minimum amount of

                $1,000,000 and multiples

                thereof, or, if less, an

                amount equal to the

                Maximum Incremental

                Purchase Amount)

 

A5           Proposed Allocation

among Purchasers

 

Amsterdam                  $_________         $_________           $_________              $_________

 

Committed

  Purchasers                $_________         $_________           $_________              $_________

A6           For Committed

Purchases, Tranche

Period(s) and Tranche Rate(s)

 

Starting

Date                       _________           _________             _________                  _________

Ending

Date                        _________           _________             _________                  _________

Number

of Days                 _________           _________             _________                  _________

Prime

or Eurodollar            _________           _________             _________                  _________

 

Each proposed Purchase Date must be a

Business Day.  The choice of Measurement

Date is a risk undertaken by the Seller. 

If a selected Measurement Date is not the applicable Purchase Date, the

Seller’s choice and disclosure of such date shall not in any manner diminish or

waive the obligation of the Seller to assure the Purchasers that, after giving

effect to the proposed Purchase, the actual Sold Interest as of the date of

such proposed Purchase does not exceed 100%.

 

Exhibit B

to

Receivables

Sale Agreement

 

Form

of Notification of Assignment to Amsterdam

From the Committed Purchasers

 

______________, 200_

 

Albany

International Receivables Corporation

1373

Broadway

Menands,

New York  12204

 

ABN

AMRO Bank N.V., as Agent

Asset

Securitization, Structured Finance

Suite

725

 

135

South LaSalle Street

Chicago, Illinois  60674-9135

Attn:  Administrator-Amsterdam

 

[Insert Name and Address of

each
  other Committed Purchaser]

 

Re:          Receivables Sale Agreement dated as of

September 28, 2001 (the “Sale Agreement”) 

among

Albany International Receivables Corporation, as Seller,

Albany International

Corp., as Initial Collection Agent,

ABN AMRO Bank N.V., as

Agent,

and the Purchasers

thereunder

 

Ladies and Gentlemen:

 

The Agent under the above referenced Sale

Agreement hereby notifies each of you that Amsterdam has notified the Agent

pursuant to Section 2.2 of the Sale Agreement that it will purchase from

the Committed Purchasers on ________________ (the “Purchase Date”) that

portion of the Committed Purchasers’ Investments identified on Schedule I

hereto (the “Assigned

Interest”).  As further

provided in Section 2.2 of the Sale Agreement, upon payment by Amsterdam

to the Agent of the purchase price of such Investments described on

Schedule I hereto, effective as of the Purchase Date the assignment by the

Committed Purchasers to Amsterdam of the Assigned Interest shall be complete

and all payments thereon under the Sale Agreement shall be made to Amsterdam.

 

In accordance with the Sale Agreement,

each Committed Purchaser’s acceptance of the portion of the purchase price

payable to it described on Schedule I hereto constitutes its

representation and warranty that it is the legal and beneficial owner of the

portion of the Assigned Interest related to its Purchase Interest identified on

Schedule I free and clear of any Adverse Claim created or granted by it

and that on the Purchase Date it is not subject to a Bankruptcy Event.

 

	

   

  	

  Very truly yours,

  
	

   

  	

   

  
	

   

  	

  ABN

  AMRO Bank N.V., as Agent

  

 

 

	

   

  	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

   

  	

  Name

  	

   

  
	

   

  	

   

  	

  Title

  	

   

  

 

 

	

   

  	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

   

  	

  Name

  	

   

  
	

   

  	

   

  	

  Title

  	

   

  

 

Schedule I

to

Notification

of Assignment

 

Dated ______________, 200_

 

I.              Amount

of Committed Purchaser Investment Assigned: 

$________

 

II.            Information

for each Committed Purchaser:

 

	

  Purchaser

  	

  Purchase

  Interest

  	

  Purchase

  Price*

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  

 

 

III.           Information

for Seller:

 

Aggregate amount of

purchase price in excess of amount of Investment assigned:  $___________.

 

 

*               Calculated

in accordance with Section 2.2. 

 

Exhibit C

 

Form of Periodic Report

 

Exhibit D

 

Addresses

and Names of Seller and Originators

 

                  1.       Locations.  (a) The chief executive office of the Seller and the Originators

are located at the following addresses:

 

Albany

International Receivables Corporation

1373

Broadway

Menands,

New York 12204

 

Albany

International Corp.

1373

Broadway

Menands,

New York 12204

Taxpayer

ID # 14-0462060

 

Geschmay

Corp.

525

Old Piedmont Highway

Greenville,

SC  29605-4691

Taxpayer

ID # 57-0655559

 

Albany

International Techniweave, Inc.

112

Airport Drive

Rochester,

NH  03867

Taxpayer

ID # 02-0370219

 

Albany

International Research Co.

777

West Street

Mansfield,

MA  02048-9114

Taxpayer

ID # 14-1767946

 

Albany

International Canada Inc.

300

Westmount Street

Cowansville,

Quebec  J2K 1S9  Canada

Business

Number:  100109461

 

M

& I Door Systems Ltd.

230

Bay View Drive - U1-7

Barrie,

Ontario  L4N 5E9  Canada

Business

Number: 897599841

 

No such address was different at any time since

September 29, 2000.

 

(b)       The following are all the locations where

the Seller and the Originators directly or through its agents maintain any

Records:

 

Same as (a) above

 

2.         Names. 

The following is a list of all names (other than the legal names set

forth above) (including trade names or similar appellations) used by the Seller

and the Originators or any of its divisions or other business units that

generate Receivables:

 

Albany

International Corp. (“AIC”)

 

Nomafa,

Nomafa Door Systems

 

Primaloft

 

Appleton

Wire Works

 

Mount

Vernon Dryer Fabrics

 

Albany

Mount Vernon

 

Albany

Felt

 

Geschmay

Corp.

 

Wangner

Systems Corporation

 

Wangner

Forming Fabrics, Inc.

 

Geschmay

Forming Fabrics, Inc.

 

Brandon

Drying Fabrics, Inc.

 

Geschmay

Wet Felts, Inc.

 

Exhibit E

 

Lock Boxes and Lock-Box Banks

 

	

  Bank

  	

  Lock-Box

  Numbers

  	

  Collection

  Account

  
	

   

  	

   

  	

   

  
	

  Wachovia Bank, N.A.

  	

  752020,

  751538 and 75158

  	

  1868-085316

  
	

   

  	

   

  	

   

  
	

  Fleet National Bank

  	

  3241

  and 414034

  	

  502-59058

  
	

   

  	

   

  	

   

  
	

  Nova Scotia Bank

  	

  Not

  Established

  	

  Not Established

  

 

Exhibit F

 

to Receivables Sale Agreement

 

Form of Lock Box Letter

 

[Name of Lock Box Bank]

 

Ladies and Gentlemen:

 

Reference is made to the lock-box numbers

_______________ in __________ and the associated lock-box demand deposit account

number ____________ maintained with you (such lock-boxes and associated

lock-box demand deposit account, collectively, the “Accounts”), each in the

name of [Name

of Originator] (“[___]”).  [___] hereby confirms it has sold all

Receivables (as defined below) to Albany International Receivables Corporation

(the “Seller”).

 

In connection with the Receivables Sale

Agreement, dated as of September 28, 2001 (as amended, supplemented or

otherwise modified from time to time, the “Receivables Sale Agreement”), among the

Seller, the Initial Collection Agent, Amsterdam Funding Corporation (“Amsterdam”),

the financial institutions from time to time party thereto (collectively, the “Committed

Purchasers”), ABN AMRO Bank N.V., as provider of the program letter

of credit (the “Enhancer”), and ABN AMRO Bank N.V., as agent (the “Agent”)

for Amsterdam, the Committed Purchasers (collectively, the “Purchasers”), the Seller

has assigned to the Agent for the benefit of the Purchasers an undivided

percentage interest in the accounts, chattel paper, instruments or general

intangibles (collectively, the “Receivables”) under which payments are or

may hereafter be made to the Accounts, and has granted to the Agent for the

benefit of the Purchasers a security interest in its retained interest in such

Receivables.  As is the customary

practice in this type of transaction, we hereby request that you execute this

letter agreement.  All references herein

to “we”

and “us”

refer to [_____]

and the Seller, jointly and severally. 

Your execution hereof is a condition precedent to our continued

maintenance of the Accounts with you.

 

We hereby transfer exclusive dominion and

control of the Accounts to the Agent, subject only to the condition subsequent

that the Agent shall have given you notice that a Collection Agent Replacement

Event has occurred and is continuing under the Receivables Sale Agreement and

of its election to assume such dominion and control, which notice shall be in

substantially the form attached hereto as Annex A (the “Agent’s Notice”).

 

At all times prior to the receipt of the

Agent’s Notice described above, all payments to be made by you out of, or in

connection with the Accounts, are to be made in accordance with the

instructions of the Seller or its agent.

 

We hereby irrevocably instruct you, at

all times from and after the date of your receipt of the Agent’s Notice as

described above, to make all payments to be made by you out of, or in

connection with, the Accounts directly to the Agent, at its address set forth

below its signature hereto or as the Agent otherwise notifies you, or otherwise

in accordance with the instructions of the Agent.

 

We also hereby notify you that, at all

times from and after the date of your receipt of the Agent’s Notice as

described above, the Agent shall be irrevocably entitled to exercise in our

place and stead any and all rights in connection with the Accounts, including,

without limitation, (a) the right to specify when payments are to be made out

of, or in connection with, the Accounts and (b) the right to require

preparation of duplicate monthly bank statements on the Accounts for the

Agent’s audit purposes and mailing of such statements directly to an address

specified by the Agent.  At all times

from and after the date of your receipt of the Agent’s Notice, neither we nor

any of our affiliates shall be given any access to the Accounts.

 

The Agent’s Notice may be personally

served or sent by telex, facsimile or U.S. mail, certified return receipt

requested, to the address, telex or facsimile number set forth under your

signature to this letter agreement (or to such other address, telex or

facsimile number as to which you shall notify the Agent in writing).  If the Agent’s Notice is given by telex or

facsimile, it will be deemed to have been received when the Agent’s Notice is

sent and the answerback is received (in the case of telex) or receipt is

confirmed by telephone or other electronic means (in the case of

facsimile).  All other notices will be

deemed to have been received when actually received or, in the case of personal

delivery, delivered.

 

By executing this letter agreement, you

acknowledge the existence of the Agent’s right to dominion and control of the

Accounts and its ownership of and security interest in the amounts from time to

time on deposit therein and agree that from the date hereof the Accounts shall

be maintained by you for the benefit of, and amounts from time to time therein

held by you as agent for, the Agent on the terms provided herein.  The Accounts are to be entitled “Albany

International Receivables Corporationand ABN AMRO Bank N.V., as Agent for the

Purchasers” with the subline “[Name of Originator]”.  Except as otherwise provided in this letter

agreement, payments to the Accounts are to be processed in accordance with the

standard procedures currently in effect. 

All service charges and fees in connection with the Accounts shall

continue to be payable by us under the arrangements currently in effect.

 

By executing this letter agreement, you

(a) irrevocably waive and agree not to assert, claim or endeavor to exercise,

(b) irrevocably bar and estop yourself from asserting, claiming or exercising

and (c) acknowledge that you have not heretofore received a notice, writ, order

or other form of legal process from any other party asserting, claiming or

exercising, any right of set-off, banker’s lien or other purported form of

claim with respect to the accounts or any funds from time to time therein.  Except for your right to payment of your

service charge and fees and to make deductions for returned items, you shall

have no rights in the Accounts or funds therein, except deductions for service

charges, fees and returned or misplaced items. 

To the extent you may ever have any additional rights, you hereby

expressly subordinate all such rights to all rights of the Agent.

 

You may terminate this letter agreement

by canceling the Accounts maintained with you, which cancellation and

termination shall become effective only upon thirty (30) days prior written

notice thereof from you to the Agent in the absence of fraud or abuse.  Incoming mail addressed to the Accounts

(including, without limitation, any direct funds transfer to the Accounts)

received after such cancellation shall be forwarded in accordance with the

Agent’s instructions.  This letter

agreement may also be terminated upon written notice to you by the Agent

stating that the Receivables Sale Agreement is no longer in effect.  Except as otherwise provided in this

paragraph, this letter agreement may not be terminated without the prior

written consent of the Agent.

 

This letter agreement contains the entire

agreement between the parties with respect to the subject matter hereof, and

may not be altered, modified or amended in any respect, nor may any right,

power or privilege of any party hereunder be waived or released or discharged,

except upon execution by you, us and the Agent of a written instrument so

providing.  The terms and conditions of

any agreement between us and you (a “Lock-Box Service Agreement”) (whether now

existing or executed hereafter) with respect to the lock-box arrangements, to

the extent not inconsistent with this letter agreement, will remain in effect

between you and us.  In the event that

any provision in this letter agreement is in conflict with, or inconsistent

with, any provision of any such Lock-Box Service Agreement, this letter

agreement will exclusively govern and control. 

Each party agrees to take all actions reasonably requested by any other

party to carry out the purposes of this letter agreement or to preserve and

protect the rights of each party hereunder.

 

In the event [___] becomes subject to a

voluntary or involuntary proceeding under the United States Bankruptcy Code, or

if you are otherwise served with legal process which you in good faith believe

affects funds in the Account you may suspend disbursements from the Account

otherwise required by the terms hereof until such time as you receive an

appropriate court order or other assurances satisfactory to you establishing

that the funds may continue to be disbursed according to the instructions

contained in this Lock-Box Letter.

 

This letter

agreement and the rights and obligations of the parties hereunder will be

governed by and construed and interpreted in accordance with the laws of the

state of __________.  This

letter agreement may be executed in any number of counterparts and all of such

counterparts taken together will be deemed to constitute one and the same

instrument.

 

Please indicate your agreement to the

terms of this letter agreement by signing in the space provided below.  This letter agreement will become effective

immediately upon execution of a counterpart of this letter agreement by all

parties hereto.

 

	

   

  	

  Very truly yours,

  
	

   

  	

   

  
	

   

  	

  [Name of Originator]

  

 

 

	

   

  	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

   

  	

  Title

  	

   

  

 

 

	

   

  	

  Albany International Receivables Corporation

  

 

 

	

   

  	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

   

  	

  Title

  	

   

  

 

Accepted and confirmed as of

the date first written above:

 

 

 

	

   

  
	

  ABN AMRO Bank

  N.V., as Agent

  
	

   

  
	

   

  
	

  By

  	

   

  	

   

  
	

  Title

  	

   

  	

   

  
	

   

  
	

   

  
	

  By

  	

   

  	

   

  
	

  Title

  	

   

  	

   

  
	

   

  
	

   

  
	

  Address of notice:

  
	

   

  	

  ABN AMRO Bank N.V.

  
	

   

  	

  Structured Finance, Asset Securitization

  
	

   

  	

  135 South LaSalle Street

  
	

   

  	

  Chicago, Illinois  60674

  
	

   

  	

  Attention:  Purchaser Agent-Amsterdam

  
	

   

  	

  Telephone Number:             (312) 904-6263

  
	

   

  	

  Telecopy Number:               (312) 904-6376

  
	

   

  
	

   

  
	

  Acknowledged and agreed to as of the

  date first written above:

  
	

   

  
	

  [Name

  of Bank]

  
	

   

  
	

   

  
	

  By

  	

   

  	

   

  
	

  Title

  	

   

  	

   

  
	

   

  
	

  Address of notice:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
						

 

Annex A to

Lock-Box Letter

 

[Name of Bank]

 

 

	

  Re:

  	

  Albany International Receivables

  Corporation

  	

   

  
	

   

  	

  Lock Box

  Numbers_____________

  	

   

  
	

   

  	

  Lock-Box Account

  Number________

  	

   

  

Ladies and Gentlemen:

 

Reference is made to the letter agreement

dated _________________ (the “Letter Agreement”) among [Name of

Originator], Albany International Receivables Corporation, the

undersigned, as Agent, and you concerning the above-described lock-boxes and

lock-box account (collectively, the “Accounts”).  We hereby give you notice that aCollection Agent Replacement

Event has occurred and is continuing under the Receivables Sale Agreement (as

defined in the Letter Agreement) and of our assumption of dominion and control

of the Accounts as provided in the Letter Agreement.

 

We hereby instruct you not to permit any

other party to have access to the Accounts and to make all payments to be made

by you out of or in connection with the Accounts directly to the undersigned

upon our instructions, at our address set forth above.

 

 

	

   

  	

  Very truly yours,

  
	

   

  	

   

  
	

   

  	

  ABN

  AMRO Bank N.V.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

   

  	

  Title

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

   

  	

  Title

  	

   

  

 

cc:           Albany

International Receivables Corporation

 

Exhibit G

 

To Receivables Sale Agreement

 

Compliance Certificate

 

To:          ABN AMRO Bank N.V., as Agent, and

                each Purchaser

 

This Compliance Certificate is furnished

pursuant to Section 5.1(a)(iii) of the Receivables Sale Agreement, dated as of

September 28, 2001 (as amended, supplemented or otherwise modified through

the date hereof, the “Sale Agreement”), among Albany

International Receivables Corporation(the “Seller”), [Name of Initial Collection Agent]

(the “Initial

Collection Agent”), the committed purchasers from time to time party

thereto (collectively, the “Committed Purchasers”) and Amsterdam

Funding Corporation (“Amsterdam” and, together with the

Committed Purchasers, the “Purchasers”) and ABN AMRO Bank N.V. as

agent for the Purchasers (in such capacity, the “Agent”).  Terms used in this Compliance Certificate

and not otherwise defined herein shall have the respective meanings ascribed

thereto in the Sale Agreement.

 

The undersigned

hereby represents, warrants, certifies and confirms that:

 

1.        The undersigned is a duly elected

Designated Financial Officer of the undersigned.

 

2.        Attached hereto is a copy of the

financial statements described in Section 5.1(a)(i) or 5.1(a)(ii) of the

Sale Agreement.

 

3.        The undersigned has reviewed the terms

of the Transaction Documents and has made, or caused to be made under his/her

supervision, a detailed review of the transactions and the conditions of the

Seller and the Originators during and at the end of the accounting period

covered by the attached financial statements.

 

4.        The examinations described in paragraph 3

hereof did not disclose, and the undersigned has no knowledge of, the existence

of any condition or event which constitutes a Potential Termination Event,

during or at the end of the accounting period covered by the attached financial

statements or as of the date of this Compliance Certificate, except as set

forth below.

 

5.        Based on the examinations described in

paragraph 3 hereof, the undersigned confirms that the representations and

warranties contained in Article IV of the Sale Agreement (except that in

the case of Reinvestment Purchase no certification of the representation, set

forth in Section 4.1(g) or (h) of the Sale Agreement) are true and correct

as though made on the date hereof, except as set forth below.

 

Described below are the exceptions, if

any, to paragraphs 4 and 5 listing, in detail, the nature of the condition or

event, the period during which it has existed and the action the undersigned

has taken, is taking or proposes to take with respect to each such condition or

event:

 

The foregoing certifications, together

with the computations set forth in Schedule I hereto and the financial

statements delivered with this Compliance Certificate in support hereof, are

made and delivered this ____ day of ___________, 200__.

 

 

	

   

  	

  Albany International

  Corp.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

   

  	

  Designated Financial Officer

  

 

Exhibit H

 

Credit and Collection Policy

 

Exhibit I

 

Exchange Rates

 

(Canadian Dollars/US Dollars)

 

	

  September

  2000

  	

  0.66860

  
	

   

  	

   

  
	

  October

  2000

  	

  0.65400

  
	

   

  	

   

  
	

  November

  2000

  	

  0.65080

  
	

   

  	

   

  
	

  December

  2000

  	

  0.66140

  
	

   

  	

   

  
	

  January

  2001

  	

  0.66600

  
	

   

  	

   

  
	

  February

  2001

  	

  0.65400

  
	

   

  	

   

  
	

  March

  2001

  	

  0.63940

  
	

   

  	

   

  
	

  April

  2001

  	

  0.64570

  
	

   

  	

   

  
	

  May

  2001

  	

  0.65010

  
	

   

  	

   

  
	

  June

  2001

  	

  0.65920

  
	

   

  	

   

  
	

  July

  2001

  	

  0.65230

  
	

   

  	

   

  
	

  August

  2001

  	

  0.64960

  

 

Exhibit J

 

Bankrupt

ObligorsPrepared by MERRILL CORPORATION

	

   

  

 

Purchase and Sale Agreement

 

Dated

as of September 28, 2001

 

among

 

Albany International Corp.,

Geschmay Corp.,

Albany International Research Co.

Albany International Techniweave, Inc.,

Albany International Canada Inc.

and

M&I Door Systems Ltd.

as Originators,

 

and

 

Albany

International Receivables Corporation,

as Buyer

 

	

   

  

 

Table of Contents

 

	

  Section

  	

  Heading

  	

   

  
	

  Section 1.

  	

  Definitions and Related

  Matters

  
	

  Section 1.1.

  	

  Defined Terms

  
	

  Section 1.2.

  	

  Other

  Interpretive Matters

  
	

   

  	

   

  
	

  Section 2.

  	

  Agreement to

  Contribute, Purchase and Sell

  
	

  Section 2.1.

  	

  Purchase and Sale

  
	

  Section 2.2.

  	

  Timing of Contribution,

  Purchases

  
	

  Section 2.3.

  	

  Purchase Price

  
	

  Section 2.4.

  	

  No

  Recourse or Assumption of Obligations

  
	

   

  	

   

  
	

  Section 3.

  	

  Administration

  and Collection

  
	

  Section 3.1.

  	

  Collection Agent

  
	

  Section 3.2.

  	

  Deemed Collections

  
	

  Section 3.3.

  	

  Application

  of Collections

  
	

  Section 3.4.

  	

  Responsibilities

  of Originator

  
	

   

  	

   

  
	

  Section 4.

  	

  Representations

  and Warranties

  
	

  Section 4.1.

  	

  Mutual

  Representations and Warranties

  
	

  Section 4.2.

  	

  Additional

  Representations by Each Originator

  
	

   

  	

   

  
	

  Section 5.

  	

  General Covenants

  
	

  Section 5.1.

  	

  Covenants

  
	

  Section 5.2.

  	

  Organizational

  Separateness

  
	

   

  	

   

  
	

  Section 6.

  	

  Termination of

  Purchases

  
	

  Section 6.1.

  	

  Voluntary Termination

  
	

  Section 6.2.

  	

  Automatic

  Termination

  
	

   

  	

   

  
	

  Section 7.

  	

  Indemnification

  
	

  Section 7.1.

  	

  Originators’

  Indemnity

  
	

  Section 7.2.

  	

  Indemnification

  Due to Failure to Consummate Purchase

  
	

   

  	

   

  
	

  Section

  8.

  	

  Miscellaneous

  
	

  Section 8.1.

  	

  Amendments,

  Waivers, etc

  
	

  Section 8.2.

  	

  Assignment

  of Receivables Purchase Agreement

  
	

  Section 8.3.

  	

  Binding

  Effect; Assignment

  
	

  Section 8.4.

  	

  Survival

  
	

  Section 8.5.

  	

  Costs,

  Expenses and Taxes

  
	

  Section 8.6.

  	

  Execution

  in Counterparts; Integration

  
	

  Section 8.7.

  	

  Governing

  Law; Submission to Jurisdiction

  
	

  Section 8.8.

  	

  No Proceedings

  
	

  Section 8.9.

  	

  Loans

  by Buyer to Originators

  
	

  Section 8.10.

  	

  Notice

  
	

  Section 8.11.

  	

  Entire Agreement

  
	

  Section 8.12.

  	

  Payments in Relevant Currency.

  
	

   

  	

   

  
	

  Signature

  	

   

  

 

Exhibit

A                Purchase Price

 

This Purchase

and Sale Agreement dated as of

September 28, 2001 (this “Agreement”) is among Albany International Corp., a Delaware

corporation, Geschmay Corp., a

Delaware corporation, Albany

International Research Co., a Delaware corporation, Albany International Techniweave, Inc., a

New Hampshire corporation, Albany

International Canada Inc., a corporation organized under the laws of

Canada and M&I Door Systems Ltd., a

corporation organized under the laws of the province of Ontario (each an “Originator”

and collectively, the “Originators”), and Albany International Receivables Corporation,

a Cayman Islands company (“Buyer”). 

The parties agree as follows:

 

Section 1.                Definitions and Related Matters

 

Section 1.1.       Defined

Terms.  In this Agreement, unless otherwise

specified or defined herein: (a) capitalized terms are used as defined in

Schedule I to the Receivables Sale Agreement dated as of the date hereof

(as amended or modified from time to time, the “Second Tier Agreement”)

among Buyer, Albany International Corp., as collection agent (the “Initial

Collection Agent”), Amsterdam Funding Corporation, the committed

purchasers party thereto, and ABN AMRO Bank N.V. as the Agent, as such

agreement may be amended or modified from time to time; and (b) terms

defined in Article 9 of the UCC and not otherwise defined herein are used

as defined in such Article 9 as in effect on the date hereof.

 

In addition, the following terms will

have the meanings specified below:

 

“Available Funds”

is defined in Section 2.3(b) hereof.

 

“Closing Date”

means the date on which this Agreement and the Second Tier Agreement become

effective in accordance with their terms.

 

“Excluded Losses”

is defined in Section 7.1 hereof.

 

“Initial Funding Date”

means September 28, 2001.

 

“Settlement Date”

means, with respect to any Settlement Period, the twentieth day of the

immediately succeeding calendar month (or, if such day is not a Business Day,

the next preceding Business Day).

 

“Settlement Period”

means a calendar month (or, in the case of the first Settlement Period, the

period from the Initial Funding Date to the end of the next succeeding calendar

month following the calendar month in which the Initial Funding Date occurs).

 

“Sold Property”

is defined in Section 2.1.

 

“United States Originator”

means any Originator that is not a Canadian Originator.

 

Section 1.2.       Other

Interpretive Matters.  In this Agreement, unless otherwise

specified:  (a) references to any

Section or Annex refer to such Section of, or Annex to, this Agreement, and

references in any Section or definition to any subsection or clause refer to

such subsection or clause of such Section or definition; (b) “herein,”

“hereof,” “hereto,” “hereunder” and similar terms refer to this

Agreement as a whole and not to any particular provision of this Agreement;

(c) “including”

means including without limitation, and other forms of the verb “to include”

have correlative meanings; (d) the word “or” is not exclusive; and

(e) captions are solely for convenience of reference and shall not affect

the meaning of this Agreement.

 

Section 2.                Agreement

to Contribute, Purchase and Sell

 

Section 2.1.       Purchase

and Sale.  On the terms and subject to the conditions

set forth in this Agreement, each Originator hereby sells to Buyer, and Buyer

hereby purchases from each Originator, all of such Originator’s right, title

and interest in, to and under the Receivables originated by such Originator,

all Related Security and all proceeds thereof (including all Collections with

respect thereto) (the “Sold Property”), in each case whether now

existing or hereafter arising or acquired.

 

Section 2.2.       Timing

of Contribution, Purchases.  $750,000 of the Receivables of Albany

International Corp. existing at the opening of Albany International Corp.’s

business on the Initial Funding Date are hereby contributed by Albany

International Corp. as capital to Buyer on the Initial Funding Date.  All of the remaining Receivables and Related

Security existing at the opening of the Originators’ business on the Initial

Funding Date are hereby sold to Buyer as of the Initial Funding Date.  After the Initial Funding Date, each

Receivable and Related Security shall be deemed to have been sold to Buyer

immediately (and without further action by any Person) upon the creation of

such Receivable.  The proceeds with

respect to each Receivable (including all Collections with respect thereto)

shall be sold at the same time as such Receivable, whether such proceeds (or

Collections) exist at such time or arise or are acquired thereafter.

 

Section 2.3.       Purchase

Price.  (a) The aggregate purchase price for the

Receivables originated by an Originator sold on the Initial Funding Date shall

be such amount as agreed upon prior to the Initial Funding Date between such

Originator and Buyer to be the fair market value of such Receivables on such

date, which shall equal the excess of the (i) estimated aggregate

outstanding balance of such Receivables over (ii) an amount agreed upon by

Buyer and such Originator representing the uncertainty of payment and cost of

purchase of such Receivables.  The purchase

price for Receivables subsequently sold during any Settlement Period shall be

calculated in accordance with the provisions set forth in Exhibit A

hereto.

 

(b) On the Initial Funding Date, Buyer shall pay

each Originator the purchase price for the Receivables originated by it sold on

that date.  On each Business Day after

the Initial Funding Date on which an Originator sells any Receivables

originated by it to Buyer pursuant to the terms of Section 2.1, until the

termination of the purchase and sale of Receivables under Section 6

hereof, Buyer shall pay to such Originator the purchase price of such

Receivables (i) by depositing into such account as such Originator shall

specify immediately available funds from monies then held by or on behalf of

Buyer solely to the extent that such monies do not constitute Collections that

are required to be identified or are deemed to be held by the Collection Agent

pursuant to the Second Tier Agreement for the benefit of, or required to be

distributed to, the Agent or the Purchasers pursuant to the Second Tier

Agreement or required to be paid to the Collection Agent as the Collection

Agent Fee, or otherwise necessary to pay current expenses of Buyer (in its

reasonable discretion) (such available monies, the “Available Funds”) and

provided that such Originator has paid all amounts then due by such Originator

hereunder or (ii) by increasing the principal amount owed to such

Originator under a promissory note (as amended or modified from time to time,

each a “Note”

and collectively the “Notes”) executed and delivered by Buyer

to the order of such Originator as of the Initial Funding Date.  The outstanding principal amount owed to an

Originator under the related Notes may be reduced from time to time as provided

in Section 3.2 hereof or by payments made by Buyer from Available Funds, provided

that such Originator has paid all amounts then due by such Originator

hereunder.  Each Originator shall make

all appropriate record keeping entries with respect to amounts due to such

Originator under the related Notes to reflect payments by Buyer thereon and

increases of the principal amount thereof, and such Originator’s books and

records shall constitute rebuttable presumptive evidence of the principal

amount of and accrued interest owed to such Originator under the related Notes.

 

Section 2.4.       No

Recourse or Assumption of Obligations.  Except as specifically provided in this

Agreement, the contribution, purchase and sale of Receivables under this

Agreement shall be without recourse to the Originators.  Each Originator and Buyer intend the

transactions hereunder to constitute true sales of Receivables by such

Originator to Buyer, providing Buyer with the full risks and benefits of

ownership of the Receivables originated by such Originator (such that the

Receivables would not be property of such Originator’s estate in the event of

such Originator’s bankruptcy).  If,

however, with respect to Sold Property conveyed to the Buyer by the

Originators, despite the intention of the parties, the conveyances provided for

in this Agreement are determined not to be “true sales” of such Sold Property

from the Originators to Buyer, then this Agreement shall also be deemed to be a

“security agreement” within the meaning of Article 9 of the UCC and (i) each

United States Originator hereby grants to Buyer a “security interest” within

the meaning of Article 9 of the UCC, (ii) M&I Door Systems Ltd. hereby

grants to Buyer a “security interest” within the meaning of the Personal

Property Act (Ontario), and, (iii) Albany International Canada Inc. hereby

grants to Buyer a “movable hypothec” within the meaning of the Civil Code of

Quebec, in each case in all of such Originator’s right, title and interest in

and to the such Sold Property, now existing and thereafter created, to secure a

loan in an amount equal to the aggregate purchase prices therefor and each of

such Originator’s other payment obligations under this Agreement.

 

Buyer shall not have any obligation or

liability with respect to any Receivable, nor shall Buyer have any obligation

or liability to any Obligor or other customer or client of an Originator

(including any obligation to perform any of the obligations of such Originator

under any Receivable).

 

Section 3.                Administration and Collection.

 

Section 3.1.       Collection

Agent.  The Initial Collection Agent shall be

responsible for the servicing, administration and collection of the

Receivables, all on the terms set out in (and subject to any rights to

terminate the Initial Collection Agent as Collection Agent pursuant to) the

Second Tier Agreement.  Pursuant to the

terms of the Second Tier Agreement, the Initial Collection Agent has the right

to appoint an Affiliate of the Initial Collection Agent to perform certain

services set forth in Article III of the Second Tier Agreement.

 

Section 3.2.       Deemed

Collections.  If on any day the outstanding balance of a

Receivable is reduced or cancelled as a result of any defective or rejected

goods or services, any cash discount or adjustment (including any adjustment resulting

from the application of any special refund or other discounts or any

reconciliation), any setoff or credit (whether such claim or credit arises out

of the same, a related, or an unrelated transaction) or other reason not

arising from the financial inability of the Obligor to pay undisputed

indebtedness, (i) the applicable Originator shall be deemed to have

received on such day a Collection on such Receivable in the amount of such

reduction or cancellation and (ii) such Receivable shall thereupon be, or

be deemed to be reconveyed to an Originator. 

If on any day any representation, warranty, covenant or other agreement

of an Originator related to a Receivable set forth in Section 4.2(a) and

4.2(g) is not true or is not satisfied, (i) such Originator shall be

deemed to have received on such day a Collection in the amount of the

outstanding balance of such Receivable and (ii) such Receivable shall

thereupon be, or be deemed to be reconveyed to such Originator.  Not later than the first Settlement Date after

an Originator is deemed pursuant to this Section 3.2 to have received any

Collections, such Originator shall transfer to Buyer, in immediately available

funds, the amount of such deemed Collections; provided, however, that if

no such application is required under the Second Tier Agreement, Buyer and such

Originator may agree to reduce the outstanding principal amount of the Notes in

lieu of all or part of such transfer. 

To the extent that Buyer subsequently collects any payment with respect

to any such “receivable,” Buyer shall pay the applicable Originator an amount

equal to the amount so collected, such amount to be payable not later than the

first Settlement Date after Buyer has so collected such amount.

 

Section 3.3.       Application

of Collections.  Any

payment by an Obligor in respect of any indebtedness owed by it to the related

Originator shall, except as otherwise specified by such Obligor (including by

reference to

a particular invoice), or required by the related contracts or law, be applied,

first,

as a Collection of any Receivable or Receivables then outstanding of such

Obligor in the order of the age of such Receivables, starting with the oldest

of such Receivables, and, second, to any other indebtedness of such

Obligor to such Originator.

 

Section 3.4.       Responsibilities

of Originator.  Each Originator shall pay when due all Taxes

payable in connection with the Receivables originated by it or their creation

or satisfaction.  Each Originator shall

perform all of its obligations under agreements related to the Receivables

originated by it to the same extent as if interests in such Receivables had not

been transferred hereunder.  The Agent’s

or any Purchaser’s exercise of any rights hereunder or under the Second Tier

Agreement shall not relieve any Originator from such obligations.  Neither the Agent nor any Purchaser shall

have any obligation to perform any obligation of any Originator in connection

with the Receivables.

 

Section 4.                Representations and Warranties.

 

Section 4.1.       Mutual

Representations and Warranties.  Each of the Originators represents and

warrants to the Buyer and its assignee as follows:

 

(a)   Corporate Existence and Power.  It is an exempted company or corporation,

duly organized, validly existing and in good standing under the laws of its

jurisdiction of organization and has all power and authority and all

governmental licenses, authorizations, consents and approvals required to carry

on its business in each jurisdiction in which its business is now conducted,

except where failure to obtain such license, authorization, consent or approval

would not have a material adverse effect on (i) its ability to perform its

obligations under, or the enforceability of, any Transaction Document,

(ii) its business or financial condition, (iii) the interests of

Buyer or its assigns under any Transaction Document or (iv) the

enforceability or collectibility of a material portion of the Receivables.

 

(b)   Authorization and No Contravention.  Its execution, delivery and performance of

each Transaction Document to which it is a party and the creation of all

security interests provided for herein and therein (i) are within its

powers, (ii) have been duly authorized by all necessary company action,

(iii) do not contravene or constitute a default under:  (A) any applicable law, rule or regulation,

(B) its articles of incorporation or charter or by–laws or other

organizational documents or (C) any agreement, order or other instrument to

which it is a party or its property is subject and (iv) will not result in

any Adverse Claim on any Receivable other than pursuant to the Transaction

Documents, Related Security or Collection or give cause for the acceleration of

any of its indebtedness.

 

(c)   No Consent Required.  No approval, authorization or other action

by, or filings with, any Governmental Authority or other Person is required in

connection with the execution, delivery and performance by it of any

Transaction Document to which it is a party or any transaction contemplated

thereby.

 

(d)   Binding Effect.  Each Transaction Document to which it is a party constitutes the

legal, valid and binding obligation of such Person enforceable against that

Person in accordance with its terms, except as limited by bankruptcy,

insolvency, or other similar laws of general application relating to or

affecting the enforcement of creditors’ rights generally and subject to general

principles of equity.

 

Section 4.2.           Additional Representations by Each

Originator. 

Each Originator further represents and warrants to Buyer as follows:

 

(a)   Perfection of Ownership Interest.  Immediately preceding its sale of

Receivables to the Buyer, the applicable Originator was the owner of, had good

title to, and effectively sold, such Receivables to the Buyer, free and clear

of any Adverse Claim.  Each Originator

owns and has good title to the Receivables free of any Adverse Claim other than

the interests of the Buyer therein that are created hereby, and the Buyer shall

at all times have a valid and continuing ownership interest, enforceable as

such against creditors of and purchasers from each Originator, in the

Receivables and Collections.  Other than

the ownership interest granted to the Buyer pursuant to this Agreement, no

Originator has pledged, assigned, sold or granted a security interest in, or otherwise

conveyed, the Receivables or the Collections. 

Each Originator has authorized the filing of and is not aware of any

financing statements against that include a description of collateral covering

the Receivables or the Collections other than any financing statement relating

to the security interest granted to the Buyer hereunder.  Each Originator has caused or will have

caused, within ten days after the date hereof, the filing of all appropriate

financing statements in the proper filing office in the appropriate

jurisdictions under the applicable law in order to perfect the conveyance of

Receivables by such Originator hereunder.

 

(b)   Accuracy of Information.  The information furnished by each

Originator, in connection with any Transaction Document, or any transaction

contemplated thereby, is true and accurate in all material respects (and is not

incomplete by omitting any information necessary to prevent such information

from being materially misleading, provided that, with respect to projected

financial information, each Originator represents only that such information

was prepared in good faith, subject to any express qualifications set forth in

such projections, based upon assumptions believed to be reasonable at the

time).

 

(c)   No Actions, Suits.  There are no actions, suits or other

proceedings (including matters relating to environmental liability) pending or

threatened against or affecting any Originator or any of its properties, that

(i) have a reasonable likelihood of an adverse outcome and, if adversely

determined (individually or in the aggregate), can reasonably be expected to

have a material adverse effect on the financial condition of the Parent and its

subsidiaries, taken as a whole, or on the collectibility of a material portion

of the Receivables or (ii) involve any Transaction Document or any

transaction contemplated thereby.  No

Originator is in default of any contractual obligation or in violation of any

order, rule or regulation of any Governmental Authority, which default or

violation is reasonably likely to have a material adverse effect upon

(i) the financial condition of the Parent and its subsidiaries, taken as a

whole or (ii) the collectibility of a material portion of the Receivables.

 

(d)   No Material Adverse Change.  Except as described in the Parent’s

Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2001 and

June 30, 2001, there has been no material adverse change since December

31, 2000 in (i) such Originator’s financial condition, business, operations

or prospects or (ii) such Originator’s ability to perform its obligations

under any Transaction Document.

 

(e)   Accuracy of Exhibits.  All information on Exhibits D and E of

the Second Tier Agreement (to the extent describing an Originator) is true and

complete in all material respects, subject to any changes permitted by, and

notified to the Agent in accordance with the Second Tier Agreement.  None of the Originators’ locations

(including without limitation their respective chief executive offices and

principal places of business) has changed within the past 12 months.  During the past 12 months, no Originator has

used any corporate, fictitious or trade name other than a name set forth of

Exhibit D to the Second Tier Agreement. 

Exhibit D to the Second Tier Agreement lists the federal employer

identification numbers of the Originators.

 

(f)    Sales by United States Originators.  Each sale by a United States Originator to

Buyer of an interest in Receivables and their Collections has been made for “reasonably

equivalent value” (as such term is used in Section 548 of the

Bankruptcy Code) and not for or on account of “antecedent debt” (as such

term is used in Section 547 of the Bankruptcy Code) owed by such Originator to

Buyer.

 

(g)   Eligible Receivables.  Each Receivable listed on the Periodic Report as part

of the Eligible Receivables Balance was an Eligible Receivable as of the date

of such Periodic Report.

 

(h)   Location of Receivables.  The contracts relating to any Receivable are

not governed by the laws of the Cayman Islands. None of the Receivables are

located in the Cayman Islands within the meaning of Cayman Islands law.

 

Section 5.                General

Covenants.

 

Section 5.1.       Covenants.  Each Originator hereby covenants and agrees

to comply with the following covenants and agreements, unless Buyer (with the

consent of the Agent) shall otherwise consent:

 

(a)   Financial Reporting. 

Each Originator will maintain a system of accounting

established and maintained in accordance with GAAP and will furnish to Buyer:

 

(i)    Annual Financial Statements.  Within 90 days after each fiscal year of

(A) the Parent, a copy of Parent’s annual audited financial statements

(including a consolidated balance sheet, consolidated statement of income and

retained earnings and statement of cash flows, with related footnotes)

certified by PriceWaterhouseCoopers or other independent certified public

accountants of national standing and prepared on a consolidated basis in

conformity with GAAP and (B) each Originator (other than the Parent) the

annual balance sheet for such Originator certified by a Designated Financial

Officer thereof, in each case prepared on a consolidated basis in conformity

with GAAP as of the close of such fiscal year for the fiscal year then ended;

 

(ii)   Quarterly Financial Statements.  Within 45 days after each (except the last)

fiscal quarter of each fiscal year of (A) the Parent, copies of the

Parent’s unaudited financial statements (including at least a consolidated

balance sheet as of the close of such quarter and statements of income,

retained earnings and cash flows for the period from the beginning of the

fiscal year to the close of such quarter) certified by a Designated Financial

Officer and prepared in a manner consistent with the financial statements

described in part (A) of clause (i) of this Section 5.1(a) and (B) each of

the Originators (other than the Parent), the quarterly balance sheet for such

Person for the period from the beginning of such fiscal year to the close of

such quarter, in each case certified by a Designated Financial Officer thereof

and prepared in a manner consistent with part (B) of clause (i) of

Section 5.1(a);

 

(iii)  Public Reports.  Promptly upon becoming available, a copy of each report or proxy

statement filed by the Parent with the Securities and Exchange Commission or

any securities exchange; and

 

(iv)  Other Information.  With reasonable promptness such other

information (including non-financial information) as may be reasonably

requested by the Buyer or its assignee.

 

(b)   Notices.  Promptly

upon a Financial Officer (as defined in the Credit Agreement) or other

executive officer of an Originator becoming aware of any of the following, such

Originator will notify Buyer and provide a description of:

 

(i)    Potential Termination Events.  The occurrence of any Potential Termination

Event;

 

(ii)   Representations and Warranties.  The failure of any representation

or warranty herein to be true (when made or at any time thereafter) in any

material respect;

 

(iii)  Litigation.  The institution of any litigation, arbitration proceeding or

governmental proceeding reasonably likely to be material to such Originator or

the collectibility or quality of a material portion of the Receivables;

 

(iv)  Judgments. The entry of any judgment,

award or decree against such Originator if the aggregate amount of all

unsatisfied and unstayed judgments then outstanding against such Originator,

the Seller Entities and the Subsidiaries exceeds $10,000,000; or

 

(v)   Changes in Business.  Any change in the character of any

Originator’s business that is reasonably expected to impair the collectibility

or quality of any material portion of the Receivables.

 

(c)   Conduct of Business.  Each Originator will perform all

actions necessary to remain duly incorporated, validly existing and in good

standing in its jurisdiction of incorporation and to maintain all requisite

authority to conduct its business in each jurisdiction in which it conducts

business.

 

(d)   Compliance with Laws.  Each Originator will comply with all laws,

regulations, judgments and other directions or orders imposed by any

Governmental Authority to which each Originator or any Receivable, any Related

Security or Collection may be subject, except to the extent non-compliance will

have a material adverse effect on (i) the collectibility of the Receivables, or

(ii) the financial condition, business or operations of Parent and its

Subsidiaries, taken as a whole.

 

(e)   Furnishing Information and Inspection of

Records.  Each Originator

will furnish to Buyer such information concerning the Receivables originated by

it as Buyer may reasonably request. 

Each Originator will permit, at any time during regular business hours,

upon reasonable advance notice, Buyer (or any representatives thereof) (i) to

examine and make copies of all Records, (ii) to visit the offices and

properties of such Originator or office of any other Person for the purpose of

examining the Records and (iii) to discuss matters relating hereto with

any of such Originator’s officers, directors, employees or independent public

accountants having knowledge of such matters. 

Once during each calendar year in connection with any proposed extension

of the Liquidity Termination Date and at any time after the occurrence of a

Termination Event or Potential Termination Event relating to clause (f) of the

definition of Termination Event, Buyer may (at the expense of the applicable

Originator) have an independent public accounting firm conduct an audit of the

Records or make test verification of the Receivables and Collections in connection

with the audit and test verifications conducted on behalf of the Agent under

the Second Tier Agreement (it being understood that such audit has already been

conducted for calendar year 2001).

 

(f)    Keeping Records.  (i) Each Originator will have and maintain

(A) administrative and operating procedures (including an ability to

recreate Records if originals are destroyed), (B) adequate facilities,

personnel and equipment and (C) all Records and other information

necessary or advisable for collecting the Receivables originated by it

(including Records adequate to permit the immediate identification of each new

Receivable originated by it and all Collections of, and adjustments to, each

existing Receivable originated by it). 

Each Originator will give Buyer prior notice of any material change in

such administrative operating procedures.

 

(ii)   Each Originator will, (A) at all times

from and after the date hereof, clearly and conspicuously mark its computer and

master data processing books and records with a legend describing Buyer’s

interest in the Receivables originated by it and the Collections and

(B) upon the request of the Buyer after a Termination Event, so mark each

contract relating to a Receivable and deliver to the Buyer all such contracts

(including all multiple originals of such contracts), with any appropriate

endorsement or assignment, or segregate (from all other receivables then owned

or being serviced by such Originator) the Receivables and all contracts

relating to each Receivable and hold in trust and safely keep such contracts so

legended in separate filing cabinets or other suitable containers at such

locations as the Buyer may specify.

 

(g)   Perfection.  (i) Each

Originator will at its expense, promptly execute and deliver all instruments and

documents and take all action necessary or requested by the Buyer (including

the execution and filing of financing or continuation statements, amendments

thereto or assignments thereof) to enable the Buyer to exercise and enforce all

its rights hereunder and to vest and maintain vested in the Buyer a valid,

first priority perfected security interest in such Receivables, the

Collections, the Related Security the Lock-Box Accounts and proceeds thereof

free and clear of any Adverse Claim (and a perfected ownership interest in such

Receivables and Collections to the extent of the Sold Interest) (and a

perfected ownership interest in the Receivables and Collections to the extent

of the Sold Interest).  The Buyer will

be permitted to sign and file any continuation statements, amendments thereto

and assignments thereof without the Buyer’s signature.

 

(ii)   Each Originator will only change its name,

identity or corporate structure or relocate its jurisdiction or chief executive

office or the Records following thirty (30) days advance written notice to

the Buyer and the delivery to the Buyer of all financing statements,

instruments and other documents (including direction letters) requested by the

Buyer.

 

(iii)  Each United States Originator will at all

times maintain its chief executive office and jurisdiction of organization

within a jurisdiction in the USA in which Article 9 of the UCC (as it may

be amended from time to time) is in effect. 

The Canadian Originators will maintain their jurisdictions of

organization and chief executive offices in the Province of Canada in which

they are currently located.  If any

Originator moves its chief executive office to a location that imposes Taxes,

fees or other charges to perfect the Buyer’s interests hereunder, such

Originator will pay all such amounts and any other costs and expenses incurred

in order to maintain the enforceability of the Transaction Documents, the Sold

Interest and the interests of the Buyer in the Receivables, the Related

Security and Collections.

 

(h)   Payments on Receivables, Accounts.  Each Originator will at all times

instruct all Obligors to deliver payments on the Receivables (including Deemed

Collections) to a Lock-Box or Lock-Box Account.  The provisions of the previous sentence shall only apply to payments

on Receivables originated by the Canadian Originators on and after the 61st

day following the date of the Second Tier Agreement.  If any such payments or other Collections are received by an

Originator, it shall hold such payments in trust for the benefit of the Buyer

and promptly (but in any event within two Business Days after receipt) remit

such funds into a Lock-Box Account. 

Each Originator will cause each Lock-Box Bank to comply with the terms

of each applicable Lock-Box Letter. 

After the occurrence of a Termination Event or the Liquidity Termination

Date, such Originator will not, and will not permit any Collection Agent or

other Person to, commingle Collections or other funds to which the Buyer is

entitled with any other funds.  Each

Originator shall only add a Lock-Box Bank, Lock-Box, or Lock-Box Account to

those listed on Exhibit E of the Second Tier Agreement if the Buyer has

received notice of such addition, a copy of any new Lock-Box Agreement and an

executed and acknowledged copy of a Lock-Box Letter substantially in the form

of Exhibit F of the Second Tier Agreement (with such changes as are

acceptable to the Buyer) from any new Lock-Box Bank.  Each Originator shall only terminate a Lock-Box Bank or Lock-Box,

or close a Lock-Box Account, upon 30 days advance notice to the Buyer.

 

(i)    Sales and Adverse Claims Relating to

Receivables.  Except as

otherwise provided herein, no Originator will (by operation of law or

otherwise) dispose of or otherwise transfer, or create or suffer to exist any

Adverse Claim upon, any Receivable or any proceeds thereof.

 

(j)    Extension or Amendment of Receivables.  Except as otherwise permitted in

Section 3.2(b) of the Second Tier Agreement and then subject to

Section 1.5 of the Second Tier Agreement, no Originator will extend,

amend, rescind or cancel any Receivable.

 

(k)   Performance of Duties.  Each Originator will perform its duties or

obligations in accordance with the provisions of each of the Transaction

Documents.  Each Originator (at its

expense) will (i) fully and timely perform in all material respects all

agreements required to be observed by it in connection with each Receivable,

(ii) comply in all material respects with the Credit and Collection

Policy, and (iii) refrain from any action that may impair the rights of

Buyer in the Receivables, the Related Security, Collections or Lock-Box

Accounts.

 

(l)    Change in Business or Credit and Collection

Policy.  No Originator will

make any material change in the character of its business and will not make any

material adverse change to the Credit and Collection Policy.

 

(m)  Accounting for Sale. 

No Originator will account for, or otherwise treat, the

transactions contemplated hereby other than as a sale of Receivables or

inconsistent with the Purchasers’ ownership interests in the Receivables and

Collections.

 

(n)   Certain Agreements.  Except as otherwise permitted by this

Agreement, no Originator will amend, modify, waive, revoke or terminate any Transaction

Document to which it is a party.

 

Section 5.2.       Organizational Separateness.  Each

Originator agrees not to take any action that would cause Buyer to violate its

formative documents or the Separateness Agreement, dated as of

September 28, 2001, to which Buyer and Albany International Corp. are

parties.  Buyer agrees to conduct its

business in a manner consistent with its formative documents and such

Separateness Agreement.

 

Section 6.                Termination of Purchases

 

Section 6.1.       Voluntary

Termination.  The

purchase and sale of Receivables pursuant to this Agreement may be terminated

by any party, upon at least five Business Days' prior written notice to the

other parties.

 

Section 6.2.        Automatic Termination.  The

purchase and sale of Receivables pursuant to this Agreement shall automatically

terminate upon the occurrence of (i) a Bankruptcy Event with respect to any

Originator, or (ii) the Liquidity Termination Date.

 

Section 7.                Indemnification

 

Section 7.1.       Originators’

Indemnity.  Without

limiting any other rights any Person may have hereunder or under applicable law,

each Originator, jointly and severally, hereby indemnifies and holds harmless

Buyer and its officers, directors, agents and employees (each an “Indemnified

Party”) from and against any and all damages, losses, claims,

liabilities, penalties, Taxes, costs and expenses (including reasonable

attorneys’ fees and court costs actually incurred) (all of the foregoing

collectively, the “Indemnified Losses”) at any time imposed on or incurred by

any Indemnified Party arising out of or otherwise relating to any Transaction

Document, the transactions contemplated thereby, or any action taken or omitted

by any of the Indemnified Parties, whether arising by reason of the acts to be

performed by such Originator hereunder or otherwise, excluding only Indemnified

Losses (“Excluded

Losses”) to the extent (a) a final judgment of a court of

competent jurisdiction holds such Indemnified Losses resulted solely from gross

negligence or willful misconduct of the Indemnified Party seeking

indemnification, (b) due to the credit risk or financial inability to pay

of the Obligor and for which reimbursement would constitute recourse to such

Originator or the Collection Agent for uncollected or uncollectible

Receivables, (c) such Indemnified Losses include Taxes on, or measured by,

the overall net income or gross receipts of the Buyer or any of its assignees

(d) such Taxes include Taxes imposed in any jurisdiction other than the United

States, Canada or the Cayman Islands by reason of the organization of the Agent

or any Purchaser (or any of their Affiliates) in such jurisdiction, the

location of assets of the Agent or any Purchaser (or any of their Affiliates)

in such jurisdiction, or the conduct of activities by the Agent or any

Purchaser (or any of their Affiliates) in such jurisdiction.  Without limiting the foregoing

indemnification, but subject to the limitations set forth in clauses (a),

(b), (c) and (d) of the previous sentence, each Originator, jointly and

severally, shall indemnify each Indemnified Party for Indemnified Losses relating

to or resulting from:

 

(i)            any representation or warranty made

by or on behalf of an Originator under or in connection with this Agreement,

any Periodic Report or any other information or report delivered by an

Originator pursuant to the Transaction Documents, which shall have been false

or incorrect in any material respect when made or deemed made;

 

(ii)           the failure by an Originator to

comply with any applicable law, rule or regulation related to any Receivable,

or the nonconformity of any such Receivable with any such applicable law, rule

or regulation;

 

(iii)          the failure of an Originator to vest

and maintain vested in Buyer, a perfected ownership or security interest in the

Receivables and the other property conveyed pursuant hereto, free and clear of

any Adverse Claim;

 

(iv)          any commingling of funds to which

Buyer is entitled hereunder with any other funds;

 

(v)           any failure of a Lock-Box Bank to

comply with the terms of the applicable Lock-Box Letter;

 

(vi)          any dispute, claim, offset or defense

(other than discharge in bankruptcy of the Obligor or financial inability of

the Obligor to pay) of the Obligor to the payment of any Receivable, or any

other claim resulting from the sale or lease of goods or the rendering of

services related to such Receivable or the furnishing or failure to furnish any

such goods or services or other similar claim or defense not arising from the

financial inability of any Obligor to pay undisputed indebtedness;

 

(vii)         any failure of an Originator to perform

its duties or obligations in accordance with the provisions of this Agreement

or any other Transaction Document to which an Originator is a party; or

 

(viii)        any environmental liability claim,

products liability claim or personal injury or property damage suit or other

similar or related claim or action of whatever sort, arising out of or in

connection with any Receivable or any other suit, claim or action of whatever

sort relating to any of any Originator’s obligations under the Transaction

Documents.

 

Section 7.2.       Indemnification

Due to Failure to Consummate Purchase.  Each Originator will indemnify Buyer on

demand and hold it harmless  against all

costs (including, without limitation, breakage costs) and expenses incurred by

Buyer resulting from any failure by such Originator to consummate a purchase

after Buyer has requested a transfer of the applicable Receivables to the

Purchasers under the terms of the Second Tier Agreement.

 

Section 8.                Miscellaneous.

 

Section 8.1.       Amendments,

Waivers, etc.  No

amendment of this Agreement or waiver of any provision hereof or consent to any

departure by either party therefrom shall be effective without the written

consent of the party that is sought to be bound. Any such waiver or consent

shall be effective only in the specific instance given. No failure or delay on

the part of either party to exercise, and no delay in exercising, any right

hereunder shall operate as a waiver thereof; nor shall any single or partial

exercise of any right hereunder preclude any other or further exercise thereof

or the exercise of any other right. The remedies herein provided are cumulative

and not exclusive of any remedies provided by law. Each Originator agrees that

the Purchasers may rely upon the terms of this Agreement, and that the terms of

this Agreement may not be amended, nor any material waiver of those terms be

granted, without the consent of the Agent; provided that such Originator and Buyer

may agree to an adjustment of the purchase price for any Receivable originated

by such Originator without the consent of the Agent provided that the purchase

price paid for such Receivable shall be an amount not less than adequate

consideration that represents fair value for such Receivable.

 

Section 8.2.       Assignment

of Receivables Purchase Agreement.  Each Originator hereby acknowledges that on

the date hereof Buyer has collaterally assigned for security purposes all of

its right, title and interest in, to and under this Agreement to the Agent for

the benefit of the Purchasers pursuant to the Second Tier Agreement and that

the Agent and the Purchasers are third party beneficiaries hereof.  Each Originator hereby further acknowledges

that after the occurrence and during the continuation of a Termination Event

all provisions of this Agreement inuring to the benefit of the Buyer shall

inure to the benefit of the Agent and the Purchasers, including the enforcement

of any provision hereof to the extent set forth in the Second Tier Agreement,

but that neither the Agent nor any Purchaser shall have any obligations or

duties under this Agreement. No purchases shall take place hereunder at any

time that the Agent has exercised its right to enforce Buyer’s rights hereunder

pursuant to Section 1.8 of the Second Tier Agreement.  Each Originator hereby further acknowledges that the execution

and performance of this Agreement are conditions precedent for the Agent and

the Purchasers to enter into the Second Tier Agreement and that the agreement

of the Agent and Purchasers to enter into the Second Tier Agreements will directly

or indirectly benefit such Originator and constitutes good and valuable

consideration for the rights and remedies of the Agent and each Purchaser with

respect hereto.

 

Section 8.3.      

Binding Effect; Assignment.  This Agreement shall be

binding upon and inure to the benefit of the parties hereto and their

respective successors and assigns and shall also, to the extent provided

herein, inure to the benefit of the parties to the Second Tier Agreement.  Each Originator acknowledges that Buyer's

rights under this Agreement are being assigned to the Agent under the Second

Tier Agreement and consents to such assignment and to the exercise of those

rights directly by the Agent, to the extent permitted by the Second Tier

Agreement.

 

Section 8.4.       Survival.  The

rights and remedies with respect to any breach of any representation and

warranty made by an Originator or Buyer pursuant to Section 4 and the

indemnification provisions of Section 7 shall survive any termination of this

Agreement.

 

Section 8.5.       Costs, Expenses

and Taxes.  In

addition to the obligations of the Originators under Section 7, each

party (the Originators being one party and the Buyer the other party) hereto

agrees to pay on demand all costs and expenses incurred by the other party and

its assigns (other than Excluded Losses) in connection with the enforcement of,

or any actual or claimed breach of, this Agreement, including the reasonable

fees and expenses of counsel to any of such Persons incurred in connection with

any of the foregoing or in advising such Persons as to their respective rights

and remedies under this Agreement in connection with any of the foregoing. Each

Originator, jointly and severally, also agrees to pay on demand all stamp and

other taxes and fees payable or determined to be payable in connection with the

execution, delivery, filing, and recording of this Agreement.

 

Section 8.6.       Execution

in Counterparts; Integration.  This Agreement may be

executed in any number of counterparts and by the different parties in separate

counterparts, each of which when so executed shall be deemed to be an original

and all of which when taken together shall constitute one and the same

Agreement.

 

Section 8.7.       Governing Law; Submission to Jurisdiction.  This Agreement shall be governed by, and

construed in accordance with, the internal laws (and not the law of conflicts)

of the State of New York.  Each

Originator hereby submits to the nonexclusive jurisdiction of the United States

District Court for the Southern District of New York and of any New York state

court sitting in New York City for purposes of all legal proceedings arising

out of, or relating to, the Transaction Documents or the transactions

contemplated thereby.  Each Originator

hereby irrevocably waives, to the fullest extent permitted by law, any

objection it may now or hereafter have to the venue of any such proceeding and

any claim that any such proceeding has been brought in an inconvenient

forum.  Nothing in this Section 8.7

shall affect the right of Buyer to bring any action or proceeding against an

Originator or its property in the courts of other jurisdictions.

 

Section 8.8.       No

Proceedings.  Each

Originator agrees, for the benefit of the parties to the Second Tier Agreement,

that it will not institute against Buyer, or join any other Person in

instituting against Buyer, any proceeding of a type referred to in the

definition of Bankruptcy Event until one year and one day after no investment,

loan or commitment is outstanding under the Second Tier Agreement.

 

Section 8.9.      

Loans by Buyer to Originators.  Buyer may make loans to

an Originator from time to time if so agreed between such parties and to the

extent that Buyer has funds available for that purpose after satisfying its

obligations under this Agreement and the Second Tier Agreement. Any such loan

shall be payable upon demand (and may be prepaid with penalty or premium) and

shall bear interest at such rate as Buyer and such Originator shall from time

to time agree.

 

Section 8.10.     Notices.  Unless

otherwise specified, all notices and other communications hereunder shall be in

writing (including by telecopier or other facsimile communication), given to

the appropriate Person at its address or telecopy number set forth in the

Second Tier Agreement or at such other address or telecopy number as such

Person may specify, and effective when received at the address specified by

such Person.

 

Section 8.11.    

Entire Agreement.  This Agreement constitutes the entire

understanding of the parties thereto concerning the subject matter thereof.  Any previous or contemporaneous agreements,

whether written or oral, concerning such matters are superseded thereby.

 

Section 8.12.     Payments in Relevant Currency.  All payments to be made by each Originator

hereunder shall be made in Dollars (the “relevant currency”).  To the fullest extent permitted by law, the

obligation of each Originator in respect of any amount due in the relevant

currency under this Agreement shall, notwithstanding any payment in any other

currency (whether pursuant to a judgment or otherwise), be discharged only to

the extent of the amount in the relevant currency that the Buyer or its

assignee, as applicable, may, in accordance with normal banking procedures,

purchase with the sum paid in such other currency (after any premium and costs

of exchange) on the Business Day immediately following the day on which the

Buyer or its assignee, as applicable, receives such payment.  If the amount in the relevant currency that

may be so purchased for any reason falls short of the amount originally due,

each Originator shall pay such additional amounts, in the relevant currency, as

may be necessary to compensate for the shortfall.  Any obligations of the undersigned not discharged by such payment

shall, to the fullest extent permitted by applicable law, be due as a separate

and independent obligation and, until discharged as provided herein, shall

continue in full force and effect.

 

In Witness Whereof, the parties have

caused this Agreement to be executed by their respective officers thereunto duly

authorized, as of the date first above written.

 

	

   

  	

   

  	

  Albany International Corp., as Originator

  
	

   

  	

   

  	

  and Initial Collection Agent

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

   

  	

  Name:

  	

   

  
	

   

  	

   

  	

  Title:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Geschmay Corp., as Originator

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

   

  	

  Name:

  	

   

  
	

   

  	

   

  	

  Title:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Albany International

  Research Co., as

  Originator

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

   

  	

  Name:

  	

   

  
	

   

  	

   

  	

  Title:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Albany International

  Techniweave, Inc., as

  Originator

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

   

  	

  Name:

  	

   

  
	

   

  	

   

  	

  Title:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Albany International Canada

  Inc., as Originator

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

   

  	

  Name:  

  	

   

  
	

   

  	

   

  	

  Title:  

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  M&I Door Systems Ltd., as Originator

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

   

  	

  Name:

  	

   

  
	

   

  	

   

  	

  Title:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Albany International

  Receivables 

  
	

   

  	

   

  	

  Corporation, as Buyer

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

   

  	

  Name:

  	

   

  
	

   

  	

   

  	

  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]