Translation of Letter Dated January 19, 1999
From: Deutsche Bank, Mr. Jakobi
Blumenstrasse 13, 42849 Remscheid, Germany
To: International Knife & Saw, Inc., Mr. Thomas Meyer
C/O IKS Klingelnberg GmbH
In der Fleute 18, 42897 Remscheid, Germany
Credit Lines
Dear Mr. Meyer:
In reference to our discussions in recent weeks, we hereby confirm to you within
the framework of our General Conditions (AGB) that we have committed to
International Knife & Saw, Inc. a total credit line including guarantees in the
amount of DEM 74,175,000.00 since November 1998. With regard to the individual
loans and collaterals, we refer to the respective agreements.
We are prepared to commit DEM 52 Million out of the above mentioned total credit
line to the IKS Klingelnberg GmbH Group, as long as International Knife & Saw,
Inc. agrees to convert at least DEM 10 million of its inter-company loan to IKS
Klingelnberg GmbH into a capital contribution. By doing this, the minimum 30%
equity requirement agreed upon in October 1996 will continue to be maintained,
along with the other agreements. We would provide this credit line without the
guarantee of International Knife & Saw, Inc.
We hope that this meets your needs and look forward to a continuing smooth and
trustworthy relationship.
