Common use of Limitations on Current Debt and Funded Debt Clause in Contracts

Limitations on Current Debt and Funded Debt. (a) The Company will not permit or suffer the Adjusted Leveraged Ratio to be greater than 0.60 to 1.0 at any time. (b) The Company will not, and will not permit any Restricted Subsidiary to, create, assume, guarantee or otherwise incur or any in manner be or become liable in respect of (1) any Current Debt or Funded Debt of the Company or any Restricted Subsidiary secured by Liens permitted by SECTION 5.9(a)(8), or (2) any other Current Debt or Funded Debt of a Restricted Subsidiary (other than Qualified Current Debt and Qualified Funded Debt of a Restricted Subsidiary Guarantor), or (3) any Attributable Indebtedness of Sale and Leaseback Transactions of the Company or any Restricted Subsidiary, unless at the time of creation, issuance, assumption, guarantee or incurrence thereof and after giving effect thereto and to the application of the proceeds thereof, the sum of (A) Current Debt and Funded Debt of the Company and its Restricted Subsidiaries secured by Liens permitted by SECTION 5.9(a)(8), plus (without duplication) (B) Current Debt and Funded Debt of Restricted Subsidiaries (other than Qualified Current Debt and Qualified Funded Debt of Restricted Subsidiary Guarantors) and (C) Attributable Indebtedness of Sale and Leaseback Transactions of the Company and its Restricted Subsidiaries would not exceed 15% of Consolidated Net Worth. (c) Any Person which becomes a Restricted Subsidiary after the date hereof shall for all purposes of this SECTION 5.8 be deemed to have created, assumed or incurred at the time it becomes a Restricted Subsidiary all Current Debt and Funded Debt of such Person existing immediately after it becomes a Restricted Subsidiary.

Limitations on Current Debt and Funded Debt. (a) The Company will not permit or suffer the Adjusted Leveraged Ratio to be greater than 0.60 to 1.0 at any time. (b) The Company Lessee will not, and will not permit any Restricted Subsidiary to, create, assume, incur, guarantee or otherwise incur or in any in manner be or become liable in respect of (1) any Current Debt or Funded Debt, except: (i) Funded Debt evidenced by the 1997 Notes; (ii) Funded Debt of the Company or Lessee outstanding on the June 30, 1998 and described in Schedule 5; (iii) Current Debt and Funded Debt of the Lessee incurred under the Working Capital Facility, PROVIDED that the aggregate principal amount of such Current Debt and Funded Debt outstanding at any one time shall not exceed $40,000,000; (iv) additional Current Debt and Funded Debt of the Lessee and Funded Debt of a Restricted Subsidiary secured by Liens permitted by SECTION 5.9(a)(8)Purchase Money Liens, PROVIDED that on the date that any such Current Debt or Funded Debt is incurred and after giving effect to the application of the proceeds thereof: (2A) the ratio of Consolidated Cash Flow for the immediately preceding Four Quarter Period to Pro Forma Interest Expense for such period is greater than 2.5 to 1.0; and (B) the ratio of Consolidated Cash Flow for the immediately preceding Four Quarter Period to Pro Forma Maximum Debt Service is greater than 1.25 to 1.0; (v) unsecured Subordinated Funded Debt of the Lessee to the General Partner or any other Affiliate of the General Partner, PROVIDED that the aggregate principal amount of such Subordinated Funded Debt outstanding at any one time shall not exceed $10,000,000; and (vi) Current Debt or Funded Debt of a Restricted Subsidiary to the Lessee or to a Wholly-owned Restricted Subsidiary. (other than Qualified b) The renewal, extension or refunding of any Current Debt and Qualified or Funded Debt issued, incurred or outstanding pursuant to Section 6.2(a) shall constitute the issuance of a Restricted Subsidiary Guarantor)additional Current Debt or Funded Debt which is, or (3) any Attributable Indebtedness of Sale and Leaseback Transactions in turn, subject to the limitations of the Company or any Restricted Subsidiaryapplicable provisions of this Section 6.2, unless at the time of creationPROVIDED that, issuance, assumption, guarantee or incurrence thereof and after giving effect thereto and except to the application extent of any increase in the proceeds outstanding principal amount thereof, the sum commencement of (A) a new interest period for any Current Debt and or Funded Debt as to which interest is computed with reference to the London Interbank Offered Rate or any other base rate or the conversion of the Company and its Restricted Subsidiaries secured by Liens permitted by SECTION 5.9(a)(8)base rate used for any such interest computation shall not be considered a renewal, plus (without duplication) (B) extension, or refunding of such Current Debt and or Funded Debt for purposes of Restricted Subsidiaries (other than Qualified Current Debt and Qualified Funded Debt of Restricted Subsidiary Guarantors) and (C) Attributable Indebtedness of Sale and Leaseback Transactions of the Company and its Restricted Subsidiaries would not exceed 15% of Consolidated Net Worththis Section 6.2. (c) Any Person business entity which becomes a Restricted Subsidiary after the date hereof shall for all purposes of this SECTION 5.8 Section 6.2 be deemed to have created, assumed or incurred at the time it becomes a Restricted Subsidiary all Current Debt and Funded Debt of such Person business entity existing immediately after it becomes a Restricted Subsidiary.

Limitations on Current Debt and Funded Debt. (a) The Company will not permit or suffer the Adjusted Leveraged Ratio to be greater than 0.60 to 1.0 at any time. (b) The Company will not, and will not permit any Restricted Subsidiary to, create, assume, guarantee or otherwise incur or any in manner be or become liable in respect of (1) any Current Debt or Funded Debt of the Company or any Restricted Subsidiary secured by Liens permitted by SECTION 5.9(a)(8Section 5.9(A)(8), or (2) any other Current Debt or Funded Debt of a Restricted Subsidiary (other than Qualified Current Debt and Qualified Funded Debt of a Restricted Subsidiary Guarantor), or (3) any Attributable Indebtedness of Sale and Leaseback Transactions of the Company or any Restricted Subsidiary, unless at the time of creation, issuance, assumption, guarantee or incurrence thereof and after giving effect thereto and to the application of the proceeds thereof, the sum of (A) Current Debt and Funded Debt of the Company and its Restricted Subsidiaries secured by Liens permitted by SECTION 5.9(a)(8Section 5.9(A)(8), plus (without duplication) (B) Current Debt and Funded Debt of Restricted Subsidiaries (other than Qualified Current Debt and Qualified Funded Debt of Restricted Subsidiary Guarantors) and (C) Attributable Indebtedness of Sale and Leaseback Transactions of the Company and its Restricted Subsidiaries would not exceed 15% of Consolidated Net Worth. (c) Any Person which becomes a Restricted Subsidiary after the date hereof shall for all purposes of this SECTION Section 5.8 be deemed to have created, assumed or incurred at the time it becomes a Restricted Subsidiary all Current Debt and Funded Debt of such Person existing immediately after it becomes a Restricted Subsidiary." Section 1.5. Section 5.9 of the Note Agreements is hereby amended as follows: (a) "and" at the end of clause (8) of Section 5.9(a) is hereby deleted; (b) the "period" at the end of clause (9) of Section 5.9

Limitations on Current Debt and Funded Debt. (a) The Company will not permit or suffer the Adjusted Leveraged Ratio to be greater than 0.60 to 1.0 at any time. (b) The Company will not, and will not permit any Restricted Subsidiary to, create, assume, guarantee assume or otherwise incur or in any in manner be or become liable in respect of (1) any Current Debt or Funded Debt, except: (1) Funded Debt evidenced by the Notes; (2) Current Debt and Funded Debt of the Company or any Restricted Subsidiary secured by Liens permitted by SECTION 5.9(a)(8), or outstanding as of the date of this Agreement and reflected on Annex A to Exhibit B hereto; (23) any other Current Debt or Additional Funded Debt of a Restricted Subsidiary (other than Qualified Current Debt and Qualified Funded Debt of a Restricted Subsidiary Guarantor)the Company, or (3) any Attributable Indebtedness of Sale and Leaseback Transactions of the Company or any Restricted Subsidiary, unless provided that at the time of creation, issuance, assumption, guarantee or incurrence issuance thereof and after giving effect thereto and to the application of the proceeds thereof: (i) Consolidated Funded Debt shall not exceed 66-2/3% of Consolidated Total Capitalization, and, (ii) Net Income Available for Interest Charges for any period of 12 consecutive calendar months during the sum immediately preceding 14 consecutive calendar months prior to the issuance of such Funded Debt shall have been at least 175% of Pro Forma Interest Charges for such 12-month period; (A4) Additional unsecured Current Debt of the Company; (5) Current Debt or Funded Debt of a Restricted Subsidiary to the Company or to a Wholly-owned Restricted Subsidiary; and (6) Funded Debt of the Company and its Restricted Subsidiaries secured issued after the Closing Date evidenced by Liens permitted by SECTION 5.9(a)(8First Mortgage Bonds, provided that the Company shall have complied with the requirements of Section 5.14 hereof. (b) Indebtedness described in or issued or incurred in accordance with the limitations of Section 5.6(a) may be renewed, extended or refunded without regard to Section 5.6(a)(3), plus (without duplication) (B) Current Debt and Funded Debt provided that the principal amount thereof remaining unpaid at the time of Restricted Subsidiaries (other than Qualified Current Debt and Qualified Funded Debt of Restricted Subsidiary Guarantors) and (C) Attributable Indebtedness of Sale and Leaseback Transactions of the Company and its Restricted Subsidiaries would such renewal, extension or refunding shall not exceed 15% of Consolidated Net Worthbe increased. (c) Any Person corporation which becomes a Restricted Subsidiary after the date hereof shall for all purposes of this SECTION 5.8 Section 5.6 be deemed to have created, assumed or incurred at the time it becomes a Restricted Subsidiary all Current Debt and Funded Debt of such Person corporation existing immediately after it becomes a Restricted Subsidiary.

Limitations on Current Debt and Funded Debt. (a) The Company will not permit or suffer the Adjusted Leveraged Ratio to be greater than 0.60 to 1.0 at any time. (b) The Company will not, and will not permit any Restricted Subsidiary to, create, assume, guarantee assume or otherwise incur or in any in manner be or become liable in respect of (1) any Current Debt or Funded Debt, except: (1) Funded Debt evidenced by the Notes; (2) Funded Debt of the Company or any and its Restricted Subsidiary secured by Liens permitted by SECTION 5.9(a)(8), or Subsidiaries outstanding as of the date of this Agreement and reflected on Annex B to Exhibit B hereto; (23) any other Current Debt or unsecured Funded Debt of a Restricted Subsidiary (other than Qualified Current Debt and Qualified Funded Debt of a Restricted Subsidiary Guarantor), or (3) any Attributable Indebtedness of Sale and Leaseback Transactions of the Company or any and its Restricted Subsidiary, unless at the time of creation, issuance, assumption, guarantee or incurrence thereof and after giving effect thereto and to the application of the proceeds thereof, the sum of (A) Current Debt Subsidiaries and Funded Debt of the Company and its Restricted Subsidiaries secured by Liens permitted by SECTION 5.9(a)(8Sections 5.8(g) and (h), plus provided that at the time of issuance thereof and after giving effect thereto and to the application of the proceeds thereof: (without duplicationi) Consolidated Funded Debt shall not exceed 55% of Total Capitalization, and (Bii) Current Debt and in the case of the issuance of any Funded Debt of the Company or a Restricted Subsidiaries Subsidiary secured by Liens described in Section 5.8(h), the aggregate amount of all such secured Funded Debt shall not exceed 10% of Consolidated Net Worth; (other than Qualified 4) unsecured Current Debt of the Company and Qualified Funded its Restricted Subsidiaries, provided that no such Current Debt will be outstanding on any date unless during the period of Restricted Subsidiary Guarantors12 consecutive months immediately preceding such date, there shall have been a period of 28 consecutive days on each day of which either (i) and no such Current Debt was outstanding (Cexcluding Current Debt described in Section 5.7(a)(5)), or (ii) Attributable Indebtedness the average aggregate principal amount of Sale and Leaseback Transactions such Current Debt of the Company and its Restricted Subsidiaries would (excluding Current Debt described in Section 5.7(a)(5)) outstanding during such 28 consecutive day period did not exceed 15% the amount of Consolidated Net Worthadditional unsecured Funded Debt which could have been incurred by the Company and its Restricted Subsidiaries pursuant to Section 5.7(a)(3) on each such day of such period, provided further that if at any time the Company elects to rely on the provisions of clause (ii) above in order to comply with the requirements of this Section 5.7(a)(4), then the principal amount of such Current Debt outstanding during such 28-day period shall be deemed to be Funded Debt for all purposes of this Agreement so long as and to the extent that such Current Debt (including any renewals, extensions or replacements thereof which constitute Current Debt) remains outstanding; and (5) Current Debt or Funded Debt of a Restricted Subsidiary to the Company or to a Wholly-owned Restricted Subsidiary. (cb) Any Person corporation which becomes a Restricted Subsidiary after the date hereof shall for all purposes of this SECTION 5.8 Section 5.7 be deemed to have created, assumed or incurred at the time it becomes a Restricted Subsidiary all Current Debt and Funded Debt of such Person corporation existing immediately after it becomes a Restricted Subsidiary.

Limitations on Current Debt and Funded Debt. (a) The Company will not permit or suffer the Adjusted Leveraged Ratio to be greater than 0.60 to 1.0 at any time. (b) The Company will not, and will not permit any Restricted Subsidiary to, create, assume, guarantee assume or otherwise incur or in any in manner be or become liable in respect of (1) any Current Debt or Funded Debt, except: (1) Funded Debt evidenced by the Notes; (2) Funded Debt of the Company or any and its Restricted Subsidiary secured by Liens permitted by SECTION 5.9(a)(8)Subsidiaries outstanding as of the date of this Agreement and reflected on the consolidated balance sheet of the Company and its Restricted Subsidiaries as at December 31, or 1995; (23) any other Current Debt or Funded Debt of a Restricted Subsidiary (other than Qualified Current Debt and Qualified Funded Debt of a Restricted Subsidiary Guarantor), or (3) any Attributable Indebtedness of Sale and Leaseback Transactions of the Company or any and its Restricted SubsidiarySubsidiaries, unless provided that, at the time of creationissuance thereof and after giving effect thereto and to the application of the proceeds thereof, issuanceConsolidated Funded Debt shall not exceed an amount equal to 55% of Consolidated Total Capitalization; (4) Funded Debt of any Restricted Subsidiary in addition to that specified in (S)5.11(a)(2), assumption(3), guarantee or incurrence (5) and (6), provided that, at the time of issuance thereof and after giving effect thereto and to the application of the proceeds thereof, the sum of (A) Current Debt and the aggregate Funded Debt of the Company and its all Restricted Subsidiaries plus the aggregate amount of Indebtedness secured by Liens permitted by SECTION 5.9(a)(8), plus (without duplicationS)5.12(i) (B) Current Debt and Funded Debt of Restricted Subsidiaries (other than Qualified Current Debt and Qualified Funded Debt of Restricted Subsidiary Guarantors) and (C) Attributable Indebtedness of Sale and Leaseback Transactions of the Company and its Restricted Subsidiaries would does not exceed 15an amount equal to 20% of Consolidated Net Worth.; (c5) Any Person which becomes Current Debt or Funded Debt of a Restricted Subsidiary after to the date hereof shall for all purposes Company or to a Wholly-owned Restricted Subsidiary; (6) any renewal, extension, substitution, refinancing or replacement of any Funded Debt then outstanding, provided that the principal amount of Funded Debt BW/IP International, Inc. Note Agreement resulting from such renewal, extension, substitution, refinancing or replacement does not exceed the principal amount of Funded Debt so refinanced or such excess is permitted within the limitations of the foregoing provisions of this SECTION 5.8 be deemed to have created, assumed or incurred at the time it becomes a Restricted Subsidiary all Current Debt and Funded Debt of such Person existing immediately after it becomes a Restricted Subsidiary.(S)5.11; and

Limitations on Current Debt and Funded Debt. (a) The Company will not permit or suffer the Adjusted Leveraged Ratio to be greater than 0.60 to 1.0 at any time. (b) The Company will not, and will not permit any Restricted Subsidiary to, create, assume, guarantee or otherwise incur or any in manner be or become liable in respect of (1) any Current Debt or Funded Debt of the Company or any Restricted Subsidiary secured by Liens permitted by SECTION 5.9(a)(8Section 5.9(A)(8), or (2) any other Current Debt or Funded Debt of a Restricted Subsidiary (other than Qualified Current Debt and Qualified Funded Debt of a Restricted Subsidiary Guarantor), or (3) any Attributable Indebtedness of Sale and Leaseback Transactions of the Company or any Restricted Subsidiary, unless at the time of creation, issuance, assumption, guarantee or incurrence thereof and after giving effect thereto and to the application of the proceeds thereof, the sum of (A) Current Debt and Funded Debt of the Company and its Restricted Subsidiaries secured by Liens permitted by SECTION 5.9(a)(8Section 5.9(A)(8), plus (without duplication) (B) Current Debt and Funded Debt of Restricted Subsidiaries (other than Qualified Current Debt and Qualified Funded Debt of Restricted Subsidiary Guarantors) and (C) Attributable Indebtedness of Sale and Leaseback Transactions of the Company and its Restricted Subsidiaries would not exceed 15% of Consolidated Net Worth. (c) Any Person which becomes a Restricted Subsidiary after the date hereof shall for all purposes of this SECTION Section 5.8 be deemed to have created, assumed or incurred at the time it becomes a Restricted Subsidiary all Current Debt and Funded Debt of such Person existing immediately after it becomes a Restricted Subsidiary.