Translation of Letter Dated September 23, 1997
From: Deutsche Bank, Mr. Muller and Mr. Jakobi
Blumenstrasse 13, 42849 Remscheid, Germany
To: IKS Klingelnberg GmbH, Mr. Thomas Meyer
In der Fleute 18, 42897 Remscheid, Germany
Confirmation of Conditions
Dear Mr. Meyer:
In reference to our recent conversations we confirm to you that we have
committed to IKS Klingelnberg Group-Germany the following lines of credit/ bank
loans within the framework of our general conditions (AGB). With regard to the
duration, conditions, collaterals and covenants we refer to the individual
credit agreements.
o Operating line of credit in the amount of DEM 7,500,000.00
o KfW bank loan to IKS Klingelnberg GmbH
for the acquisition of the company Rolf Meyer;
current value of DEM 5,000,000.00
o KfW bank loan to IKS Klingelnberg GmbH
for the Joint-Venture China; current value of DEM 2,500,000.00
o KfW bank loan to IKS Klingelnberg GmbH
for the financing of the Remscheid building;
current value is DEM 3,771,000.00
o KfW bank loan to IKS Klingelnberg Falz-
messer GmbH for the acquisition of the company
Rolf Meyer; current value of DEM 5,000,000.00
o KfW bank loan to IKS Messerfabrik Gerings-
walde GmbH; current value is DEM 731,000.00
o Deutsche Bank expenditure loan to IKS
Messerfabrik Geringswalde GmbH; current value
of approximately DEM 504,000.00
In addition to these bank loans/lines of credit, we are pleased to be able to
commit to IKS Klingelnberg GmbH, Remscheid a line of credit for prospective
expenditures/company acquisitions in the amount of DEM 8,500,000.00 with
duration of up to 10 years within the framework of our General Conditions (AGB).
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At a later date, we will agree on the terms and conditions in accordance with
the then-current market circumstances.
Generally the individual assets acquired with these funds will serve as
collateral. In addition, International Knife & Saw Inc. will confirm to us that
it will not require repayment of the approximately DEM 9.4 million intercompany
loan to IKS Klingelnberg GmbH prior to a complete repayment of the loans we have
made to IKS Klingelnberg GmbH.
Please sign the enclosed copy of this letter to indicate your agreement and send
it back to us.
We thank you for your trust in us and look forward to a smooth and trustworthy
relationship.
