CREDIT AGREEMENT
as the Borrower,
as Administrative Agent, Lead Arranger
and L/C Issuer,
as Co-Lead Arranger
Page | ||||||||||
ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS | 1 | |||||||||
1.01 | Defined Terms | 1 | ||||||||
1.02 | Other Interpretive Provisions | 21 | ||||||||
1.03 | Accounting Terms | 21 | ||||||||
1.04 | Rounding | 22 | ||||||||
1.05 | Times of Day | 22 | ||||||||
1.06 | Letter of Credit Amounts | 22 | ||||||||
1.07 | Interpretation and Construction of Exceptions/Carveouts to Article VII Negative Covenants | 22 | ||||||||
1.08 | Exchange Rates; Currency Equivalents | 22 | ||||||||
ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS | 23 | |||||||||
2.01 | Loans | 23 | ||||||||
2.02 | Borrowings, Conversions and Continuations of Committed Loans | 23 | ||||||||
2.03 | Letters of Credit | 25 | ||||||||
2.04 | Repayment of Loans | 32 | ||||||||
2.05 | Prepayments | 33 | ||||||||
2.06 | Termination or Reduction of Commitments | 33 | ||||||||
2.07 | Interest | 34 | ||||||||
2.08 | Fees | 35 | ||||||||
2.09 | Computation of Interest and Fees | 35 | ||||||||
2.10 | Evidence of Debt | 35 | ||||||||
2.11 | Payments Generally; Agent’s Clawback | 36 | ||||||||
2.12 | Sharing of Payments | 38 | ||||||||
ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY | 38 | |||||||||
3.01 | Taxes | 38 | ||||||||
3.02 | Illegality | 39 | ||||||||
3.03 | Inability to Determine Rates | 40 | ||||||||
3.04 | Increased Costs | 40 | ||||||||
3.05 | Compensation for Losses | 41 | ||||||||
3.06 | Mitigation Obligations | 42 | ||||||||
3.07 | Survival | 42 | ||||||||
ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS | 42 | |||||||||
4.01 | Conditions of Initial Credit Extension | 42 | ||||||||
4.02 | Conditions to all Credit Extensions | 43 | ||||||||
ARTICLE V. REPRESENTATIONS AND WARRANTIES | 44 | |||||||||
5.01 | Existence, Qualification and Power | 44 | ||||||||
5.02 | Authorization; No Contravention | 44 | ||||||||
5.03 | Governmental Authorization; Other Consents | 44 | ||||||||
5.04 | Binding Effect | 44 | ||||||||
5.05 | Financial Statements; No Material Adverse Effect; No Internal Control Event | 45 | ||||||||
5.06 | Litigation | 45 | ||||||||
5.07 | No Default | 45 | ||||||||
5.08 | Ownership of Property; Liens | 46 | ||||||||
5.09 | Environmental Compliance | 46 | ||||||||
5.10 | Insurance | 46 | ||||||||
5.11 | Taxes | 46 | ||||||||
5.12 | ERISA Compliance | 46 |
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5.13 | Subsidiaries | 47 | ||||||||
5.14 | Margin Regulations; Investment Company Act; Public Utility Holding Company Act | 47 | ||||||||
5.15 | Disclosure | 47 | ||||||||
5.16 | Compliance with Laws | 47 | ||||||||
5.17 | Taxpayer Identification Number | 47 | ||||||||
5.18 | Intellectual Property; Licenses, Etc. | 47 | ||||||||
5.19 | Rights in Collateral; Priority of Liens | 48 | ||||||||
ARTICLE VI. AFFIRMATIVE COVENANTS | 48 | |||||||||
6.01 | Financial Statements | 48 | ||||||||
6.02 | Certificates; Other Information | 49 | ||||||||
6.03 | Notices | 50 | ||||||||
6.04 | Payment of Obligations | 50 | ||||||||
6.05 | Preservation of Existence, Etc. | 50 | ||||||||
6.06 | Maintenance of Properties | 50 | ||||||||
6.07 | Maintenance of Insurance | 50 | ||||||||
6.08 | Compliance with Laws | 51 | ||||||||
6.09 | Books and Records | 51 | ||||||||
6.10 | Inspection Rights | 51 | ||||||||
6.11 | Use of Proceeds | 51 | ||||||||
6.12 | Financial Covenants | 52 | ||||||||
6.13 | Additional Guarantors; Pledges of Stock | 53 | ||||||||
6.14 | Collateral Records | 53 | ||||||||
6.15 | Security Interests | 53 | ||||||||
6.16 | Deposits | 54 | ||||||||
6.17 | 2009 Acquisitions | 54 | ||||||||
ARTICLE VII. NEGATIVE COVENANTS | 54 | |||||||||
7.01 | Liens | 54 | ||||||||
7.02 | Investments | 55 | ||||||||
7.03 | Indebtedness | 56 | ||||||||
7.04 | Fundamental Changes | 57 | ||||||||
7.05 | Dispositions | 57 | ||||||||
7.06 | Restricted Payments | 57 | ||||||||
7.07 | Change in Nature of Business | 58 | ||||||||
7.08 | Transactions with Affiliates | 58 | ||||||||
7.09 | Burdensome Agreements | 58 | ||||||||
7.10 | Use of Proceeds | 58 | ||||||||
7.11 | Subordinated Debt to 2008 Asset Sellers | 58 | ||||||||
ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES | 59 | |||||||||
8.01 | Events of Default | 59 | ||||||||
8.02 | Remedies Upon Event of Default | 61 | ||||||||
8.03 | Application of Funds | 61 | ||||||||
ARTICLE IX. AGENT | 62 | |||||||||
9.01 | Appointment and Authorization of Agent | 62 | ||||||||
9.02 | Rights as a Lender | 62 | ||||||||
9.03 | Exculpatory Provisions | 62 | ||||||||
9.04 | Reliance by Agent | 63 | ||||||||
9.05 | Delegation of Duties | 63 | ||||||||
9.06 | Resignation of Agent | 64 | ||||||||
9.07 | Non-Reliance on Agent and Other Lenders | 64 | ||||||||
9.08 | No Other Duties, Etc | 64 |
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9.09 | Agent May File Proofs of Claim | 65 | ||||||||
9.10 | Guaranty Matters | 65 | ||||||||
9.11 | Collateral Matters | 65 | ||||||||
ARTICLE X. MISCELLANEOUS | 67 | |||||||||
10.01 | Amendments, Etc. | 67 | ||||||||
10.02 | Notices; Effectiveness; Electronic Communications | 68 | ||||||||
10.03 | No Waiver; Cumulative Remedies | 69 | ||||||||
10.04 | Expenses; Indemnity; Damage Waiver | 69 | ||||||||
10.05 | Payments Set Aside | 71 | ||||||||
10.06 | Successors and Assigns | 71 | ||||||||
10.07 | Treatment of Certain Information; Confidentiality | 74 | ||||||||
10.08 | Right of Setoff | 75 | ||||||||
10.09 | Interest Rate Limitation | 75 | ||||||||
10.10 | Counterparts; Integration; Effectiveness | 75 | ||||||||
10.11 | Survival of Representations and Warranties | 76 | ||||||||
10.12 | Severability | 76 | ||||||||
10.13 | Governing Law; Jurisdiction; Etc. | 76 | ||||||||
10.14 | Waiver of Jury Trial | 77 | ||||||||
10.15 | No Advisory or Fiduciary Responsibility | 77 | ||||||||
10.16 | USA PATRIOT Act Notice | 78 | ||||||||
10.17 | Time of the Essence | 78 | ||||||||
10.18 | Judgment Currency | 78 |
2.01 | Commitments and Applicable Percentages | |
5.06 | Litigation | |
5.09 | Environmental Matters | |
5.13 | Subsidiaries and Other Equity Investments | |
7.01 | Existing Liens | |
7.03 | Existing Indebtedness | |
10.02 | Administrative Agent’s Office, Certain Addresses for Notices | |
10.06 | Processing and Recordation Fees |
A | Committed Loan Notice | |
B | First Amended and Restated Revolving Credit Loan Note | |
C | First Amended and Restated Term Loan Note | |
D | Compliance Certificate | |
E | Assignment and Assumption | |
F | Free Cash Flow Certificate | |
G | Canadian Dollar Loan Note |
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DEFINITIONS AND ACCOUNTING TERMS
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Pricing | Funded Debt | Eurodollar | Commitment | |||||||
Level | Leverage Ratio | Rate | Base Rate | Fee | SBLC Fee | |||||
1 | <1.75:1 | 225.0 bps | 0.0 bps | 37.5 bps | 225.0 bps | |||||
2 | ≥1.75:1 but <2.50:1 | 275.0 bps | 25.0 bps | 50.0 bps | 275.0 bps | |||||
3 | ≥2.50:1 but <3.00:1 | 325.0 bps | 50.0 bps | 50.0 bps | 325.0 bps |
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Eurodollar Rate | = | Eurodollar Base Rate | ||||
1.00 – Eurodollar Reserve Percentage |
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THE COMMITMENTS AND CREDIT EXTENSIONS
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Quarter Ending | Payment | ||||
October 31, 2009; January 31, 2010; April 30, 2010; and July 31, 2010 | $ | 1,500,000.00 | |||
October 31, 2010; January 31, 2011; April 30, 2011; and July 31, 2011 | $ | 2,000,000.00 |
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Quarter Ending | Payment | ||||
October 31, 2011; January 31, 2012; and April 30, 2012 | $ | 2,750,000.00 |
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TAXES, YIELD PROTECTION AND ILLEGALITY
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CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
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REPRESENTATIONS AND WARRANTIES
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AFFIRMATIVE COVENANTS
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Minimum Annual | ||||
Fiscal Year | Consolidated EBITDA | |||
2010 | $ | 37,500,000.00 | ||
2011 | $ | 40,000,000.00 | ||
2012 and thereafter | $ | 45,000,000.00 |
Test Dates | Ratio | |
August 31, 2009; November 30, 2009; February 28, 2010; and May 31, 2010 | 1.10 -to- 1.0 | |
August 31, 2010; November 30, 2010; February 28, 2011; and May 31, 2011 | 1.15 -to- 1.0 | |
August 31, 2011; November 30, 2011; February 28, 2012; and May 31, 2012 | 1.20 -to- 1.0 |
Test Dates | Ratio | |
August 31, 2009 and November 30, 2009 | 3.00 -to- 1.0 | |
February 28, 2010; May 31, 2010; and August 31, 2010 | 2.50 -to- 1.0 | |
November 30, 2010 and thereafter | 2.25 -to- 1.0 |
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NEGATIVE COVENANTS
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EVENTS OF DEFAULT AND REMEDIES
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MISTRAS GROUP, INC., as Borrower | ||||
By: | /s/ Sotirios J. Vahaviolos | |||
Sotirios J. Vahaviolos | ||||
President | ||||
BANK OF AMERICA, N.A., as Agent | ||||
By: | /s/ Anne Zeschke | |||
Anne Zeschke | ||||
Agency Management Officer | ||||
BANK OF AMERICA, N.A., as a Lender, Lead Arranger and L/C Issuer | ||||
By: | /s/ William T. Franey | |||
William T. Franey | ||||
Senior Vice President | ||||
JPMORGAN CHASE BANK, N.A., as a Lender and a Co-Lead Arranger | ||||
By: | /s/ Susan M. Graham | |||
Susan M. Graham | ||||
Vice President | ||||
TD BANK, N.A., as a Lender | ||||
By: | /s/ John T. Callaghan | |||
Name: | John T. Callaghan | |||
Title: | Vice President | |||
CAPITAL BANK, N.A., as a Lender | ||||
By: | /s/ Allison Saroo | |||
Name: | Allison Saroo | |||
Title: | Vice President | |||
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RESTATED CREDIT AGREEMENT BY AND AMONG, AMONGST OTHERS, MISTRAS
GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE
AGENT, DATED JULY 22, 2009
AND APPLICABLE PERCENTAGES
Lender | Revolving Loan Commitment | Applicable Percentage | ||||||
Bank of America, N.A | $ | 15,628,205.13 | 29.487179491 | % | ||||
JPMorgan Chase Bank, N.A | $ | 16,987,179.49 | 32.051282057 | % | ||||
TD Bank, N.A. | $ | 10,192,307.69 | 19.230769226 | % | ||||
Capital One, N.A. | $ | 10,192,307.69 | 19.230769226 | % | ||||
Total | $ | 53,000,000.00 | 100.000000000 | % | ||||
Lender | Term Loan Commitment | Applicable Percentage | ||||||
Bank of America, N.A | $ | 7,371,794.87 | 29.487179480 | % | ||||
JPMorgan Chase Bank, N.A | $ | 8,012,820.51 | 32.051282040 | % | ||||
TD Bank, N.A. | $ | 4,807,692.31 | 19.230769240 | % | ||||
Capital One, N.A. | $ | 4,807,692.31 | 19.230769240 | % | ||||
Total | $ | 25,000,000.00 | 100.000000000 | % | ||||
Canadian Dollar Loan | ||||||||
Lender | Commitment | Applicable Percentage | ||||||
Bank of America, N.A. | $ | 2,000,000.00 | 100.000000000 | % | ||||
Total | $ | 2,000,000.00 | 100.000000000 | % |
RESTATED CREDIT AGREEMENT BY AND AMONG, AMONGST OTHERS, MISTRAS
GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE
AGENT, DATED JULY 22, 2009
RESTATED CREDIT AGREEMENT BY AND AMONG, AMONGST OTHERS, MISTRAS
GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE
AGENT, DATED JULY 22, 2009
RESTATED CREDIT AGREEMENT BY AND AMONG, AMONGST OTHERS, MISTRAS
GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE
AGENT, DATED JULY 22, 2009
AND OTHER EQUITY INVESTMENTS
AND EQUITY INTERESTS IN BORROWER
• | Envirocoustics ABEE (99% owned by Physical Acoustics Limited) | ||
• | Euro Physical Acoustics, S.A. (99.9% stock ownership) | ||
• | Physical Acoustics Limited (100% stock ownership) | ||
• | Physical Acoustics India Private Ltd. (90% stock ownership by Physical Acoustics Ltd.) | ||
• | Anru Physical ALC TLP Beheer B.V., formerly known as Physical Acoustics, B.V. (40% direct stock ownership and 60% stock ownership by Physical Acoustics Limited) | ||
• | Nippon Physical Acoustics Limited (100% stock ownership) | ||
• | Physical Acoustics South America Ltda. (97% stock ownership) | ||
• | Physical Acoustics Argentina S.A. (100% stock ownership by Physical Acoustics South America Ltda.) | ||
• | Diapac (85% membership interest) | ||
• | Quality Services Laboratories, Inc. (100% stock ownership) | ||
• | Physical Acoustics Corporation (100% stock ownership) (no operations) | ||
• | CISMIS Springfield Corp. (100% stock ownership) (no operations) | ||
• | ThermTech Services, Inc. (100% stock ownership) | ||
• | Mistras Canada Inc. (100% owned by Mistras Group, Inc.) |
None. |
See attached. |
RESTATED CREDIT AGREEMENT BY AND AMONG, AMONGST OTHERS, MISTRAS
GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE
AGENT, DATED JULY 22, 2009
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RESTATED CREDIT AGREEMENT BY AND AMONG, AMONGST OTHERS, MISTRAS
GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE
AGENT, DATED JULY 22, 2009
RESTATED CREDIT AGREEMENT BY AND AMONG, AMONGST OTHERS, MISTRAS
GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE
AGENT, DATED JULY 22, 2009
CERTAIN ADDRESSES FOR NOTICES
195 Clarksville Road
Princeton Junction, NJ 08550
Attention: Paul “Pete” Peterik
Telephone: 609.716.4103
Telecopier: 609.716.4179
Electronic Mail: pete.peterik@mistrasgroup.com
U.S. Taxpayer Identification Number: 22-3341267
Joseph F. Daniels, Esq.
Fulbright & Jaworski L.L.P.
666 Fifth Avenue
New York, NY 10103
Bank of America, N.A.
101 N. Tryon Street
Mail Code: NC1-001-04-39
Charlotte, NC 28255-0001
Attention: Renee Daniels-Moring
Telephone: (704) 387-9468
Telecopier: (704) 310-3288
Electronic Mall: renee.d.daniels-moring@bankofamerica.com
Account No.: 136-621-225-0600
Ref: Mistras Group, Inc.
ABA# 026009593
Bank of America, N.A.
Mail Code: Il1-231-10-41
231 S. LaSalle Street
Chicago, Illinois 60604
Tel: 312-828-7299
Fax: 877-216-2432
Standby Letters of Credit:
Trade Operations
One Fleet Way
Mail Code: PA6-580-02-30
Scranton, PA 18507
Attention: | Alfonso (Al) Malave Telephone: 570.330.4212 Telecopier: 570.330.4186 |
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RESTATED CREDIT AGREEMENT BY AND AMONG, AMONGST OTHERS, MISTRAS
GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE
AGENT, DATED JULY 22, 2009
Transaction | Assignment Fee | |||
First four concurrent assignments or suballocations to members of an Assignee Group (or from members of an Assignee Group, as applicable) | -0- | |||
Each additional concurrent assignment or suballocation to a member of such Assignee Group (or from a member of such Assignee Group, as applicable) | $ | 500 |
RESTATED CREDIT AGREEMENT BY AND AMONG, AMONGST OTHERS,
MISTRAS GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A.,
AS ADMINISTRATIVE AGENT, DATED JULY [___], 2009
Conversion or continuation of Revolving Loans
[Type of Loan requested]
Conversion or continuation of the Term Loan
[Type of Loan requested]
Conversion or continuation of Canadian Dollar Loans
[Type of Loan requested]
MISTRAS GROUP, INC. | ||||
By: | ||||
Name: | ||||
Title: |
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AND RESTATED CREDIT AGREEMENT BY AND AMONG, AMONGST OTHERS, MISTRAS
GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE
AGENT, DATED JULY [___], 2009
US$ | July ___, 2009 |
ATTEST: | MISTRAS GROUP, INC., a Delaware corporation | |||||||
By: | By: | |||||||
Paul Peterik | Sotirios J. Vahaviolos | |||||||
Chief Financial Officer | President |
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Amount of | Outstanding | |||||||||||||||||||
Type of | Amount of | End of | Principal or | Principal | ||||||||||||||||
Loan | Loan | Interest | Interest Paid | Balance | Notation | |||||||||||||||
Date | Made | Made | Period | This Date | This Date | Made By | ||||||||||||||
AMONG, AMONGST OTHERS, MISTRAS GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A., AS
ADMINISTRATIVE AGENT, DATED JULY [___], 2009
US$ | July ___, 2009 |
ATTEST: | MISTRAS GROUP, INC., a Delaware corporation | |||||||
By: | By: | |||||||
Paul Peterik | Sotirios J. Vahaviolos | |||||||
Chief Financial Officer | President |
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AMONG, AMONGST OTHERS, MISTRAS GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A., AS
ADMINISTRATIVE AGENT, DATED JULY [___], 2009
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MISTRAS GROUP, INC. | ||||
By: | _____________________________ | |||
Name: | _______________________ | |||
Title: | _______________________ | |||
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to the Compliance Certificate
($ in 000’s)
I. | Section 6.12(a) — Minimum EBITDA | |||||||
1. | net income: | $___________ | ||||||
2. | minus income or plus loss from discontinued operations and extraordinary items: | ($___________) | ||||||
3. | plus income tax expenses: | $___________ | ||||||
4. | plus interest expense: | $___________ | ||||||
5. | plus depreciation, depletion and amortization (including non-cash loss on retirement assets: | $___________ | ||||||
6. | plus stock option expense: | $___________ | ||||||
7. | minus cash expense related to stock options: | ($___________) | ||||||
8. | plus Add Back Amounts, if applicable: | $___________ | ||||||
9. | plus amounts expended in the settlement of that certain labor class action lawsuit filed in California against Conam Inspection & Engineering Services, Inc. in an amount not to exceed $2,100,000.00, if applicable: | $___________ | ||||||
10. | plus amounts expended by the Borrower in connection with the initial public offering of its common stock pursuant to an effective registration statement under the Securities Act of 1933, if applicable: | $___________ | ||||||
11. | plus amounts expended by the Borrower in connection with the closing of the credit facilities described in this Agreement, if applicable: | $___________ | ||||||
12. | Total (Line I.1 - I.2 + I.3 + I.4 + I.5 + I.6 - I.7 + I.8 + I.9 + I.10 + I.11): | $___________ | ||||||
Minimum Required: | $___________ | |||||||
II. | Section 6.12(b) — Minimum Debt Service Coverage Ratio. | |||||||
A. | EBITDA (Line I.12): | $____________ |
B. | Cash taxes, dividends, cash distributions, withdrawals and other distributions: | ($___________) | ||||||
C. | Current Portion of Long Term Debt: | |||||||
1. current portion of long-term liabilities (i.e., that portion due and owing in the 12 month period following said date of determination), including any conditional payments due under any earn-out agreements, deemed due and owing in such 12 month period, and current portion of capitalized lease obligations (i.e., that portion due and owing in the 12 month period following said date of determination): | ||||||||
$___________ | ||||||||
2. plus interest expense on all obligations paid during the 12 month period immediately preceding said date of determination: | ||||||||
$___________ | ||||||||
3. Total (Line II.C.1 + Line II.C.2): | $___________ | |||||||
D. | Debt Service Coverage Ratio ((Line II.A — II.B) / Line II.C.3): | _______ -to- 1.0 | ||||||
Minimum Required: | _______ -to- 1.0 | |||||||
III. | Section 6.12(c) — Maximum Funded Debt Leverage Ratio. | |||||||
A. | Funded Debt: all outstanding liabilities for borrowed money plus other interest-bearing liabilities, including current and long-term liabilities (but excluding the capital lease between Borrower and Sotirios Vahaviolos relating to Borrower’s occupancy of the premises located at 195 Clarksville Road, Princeton Junction, New Jersey): | $___________ | ||||||
B. | EBITDA (Line I.12) | $___________ | ||||||
C. | Funded Debt Leverage Ratio (Line III.A / Line III.B): | _______ -to- 1.0 | ||||||
Maximum Permitted: | _______ -to- 1.0 | |||||||
IV. | Free Cash Flow | |||||||
1. | EBITDA (Line I.12): | $___________ | ||||||
2. | less all taxes paid or payable in cash: | ($___________) | ||||||
3. | less cash interest paid: | ($___________) | ||||||
4. | less all capital expenditures made in cash: | ($___________) |
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5. | less all scheduled and non-scheduled principal payments on Funded Debt made during the period (excluding free cash flow payments made pursuant to Section 2.05(c) of the Credit Agreement): | ($__________) | ||||||
6. | plus any Decrease in Working Capital (or minus any Increase in Working Capital): | $___________ | ||||||
7. | Total Free Cash Flow: | $___________ |
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RESTATED CREDIT AGREEMENT BY AND AMONG, AMONGST OTHERS,
MISTRAS GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A.,
AS ADMINISTRATIVE AGENT, DATED JULY [___], 2009
ASSIGNMENT AND ASSUMPTION
1. | Assignor[s]: |
2. | Assignee[s] for each Assignee, indicate Affiliate of [identify Lender] |
3. | Borrower(s): |
4. | Administrative Agent: Bank of America, N. A., as the administrative agent under the Credit |
Agreement |
5. | Credit Agreement: Second Amended and Restated Credit Agreement, dated July ___, 2009, among Mistras Group, Inc., the Lenders from time to time party thereto, Bank of America, N.A., as Administrative Agent and L/C Issuer |
Assignor[s] | Assignee[s] | Facility Assigned | Aggregate Amount of Commitment/Loans for all Lenders | Amount of Commitment/Loans Assigned | Percentage Assigned of Commitment/Loans | CUSIP No. | ||||||||||||||
$ | $ | % | ||||||||||||||||||
$ | $ | % | ||||||||||||||||||
$ | $ | % | ||||||||||||||||||
ASSIGNOR: [NAME OF ASSIGNOR] | ||||
By: | ||||
Name: | ||||
Title: | ||||
ASSIGNEE: [NAME OF ASSIGNEE] | ||||
By: | ||||
Name: | ||||
Title: |
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Administrative Agent
By: |
By: |
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ASSIGNMENT AND ASSUMPTION
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AMONG, AMONGST OTHERS, MISTRAS GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A., AS
ADMINISTRATIVE AGENT, DATED JULY [___], 2009
(a) | attached hereto asAnnex 1 is a correct calculation of Free Cash Flow for the fiscal year ended ___, 20___and a correct calculation of the required prepayment of $___; and | ||
(b) | Annex 1 attached hereto is based on the audited financial statements that have been delivered to the Agent in accordance withSection 6.01(a) of the Agreement. |
MISTRAS GROUP, INC. | ||||
By: | ||||
Name: | ||||
Title: |
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FREE CASH FLOW CERTIFICATE CALCULATION
Free Cash Flow is defined as follows: | ||||||||
EBITDA for the applicable period of measurement: | $ | |||||||
LESS: | Dividend and/or distributions paid in cash and permitted by the terms of the Agreement: | $ | ||||||
Unfinanced Capital Expenditures paid in cash and permitted by the terms of the Agreement: | $ | |||||||
Scheduled payments of interest on Funded Debt paid in cash | $ | |||||||
Taxes actually paid in cash: | $ | |||||||
Scheduled payments of principal on Funded Debt paid in cash: | $ | |||||||
Voluntary prepayments of the Term Loan: | $ | |||||||
Increase in Working Capital, if any: | $ | |||||||
(See calculation onAnnex 2 attached hereto) | ||||||||
PLUS: | Decrease in Working Capital, if any: | $ | ||||||
(See calculation onAnnex 2 attached hereto) | ||||||||
Free Cash Flow | $ | |||||||
[25%]of Free Cash Flow | $ |
- 4 -
DECREASE (INCREASE) IN WORKING CAPITAL CALCULATION
Beg. Of Period | End of Period | |||||
Current assets: | $ | $ | ||||
Less: | Cash | |||||
Cash Equivalents | ||||||
Amounts due from Affiliates: | ||||||
Deferred taxes | ||||||
Adjusted current assets | $ | $ | ||||
Current liabilities: | $ | $ | ||||
Less: | Loans Outstanding | |||||
Current portion of Indebtedness | ||||||
Amounts due to Affiliates | ||||||
Deferred taxes | ||||||
Adjusted current liabilities | $ | $ | ||||
Working capital (adjusted current assetsminus adjusted current liabilities) | $ | $ | ||||
Decrease (Increase) in Working Capital (beginning of periodminus end of period Working Capital) | $ |
- 5 -
US$ | July ___, 2009 |
- 6 -
ATTEST: | MISTRAS GROUP, INC., a Delaware corporation | |
By: | By: | |
Paul Peterik | Sotirios J. Vahaviolos | |
Chief Financial Officer | President |
- 7 -
Amount of Principal | Outstanding | |||||||||||||||||||||||||||||||
Type of Loan | Amount of Loan | End of Interest | or Interest Paid | Principal Balance | ||||||||||||||||||||||||||||
Date | Made | Made | Period | This Date | This Date | Notation Made By | ||||||||||||||||||||||||||