Common use of Prepayments of Principal Clause in Contracts

Prepayments of Principal. The following provisions apply in respect of prepayment of the Loans by the Company: (a) The Company may prepay Floating Rate Loans in whole or in part on any Business Day in amounts aggregating $5,000,000 or any larger multiple of $5,000,000 (unless such prepayment would cause the aggregate outstanding principal amount of Floating Rate Loans to be less than $5,000,000, in which event prepayment may only be made in an amount equal to the entire outstanding principal amount of Floating Rate Loans), by paying the principal amount being prepaid together with accrued interest thereon to the date of prepayment. Each prepayment in part of such Loans shall be applied to such Loans of the Banks ratably in accordance with their respective shares of the aggregate outstanding principal amount of the Floating Rate Loans. (b) The Company may, upon at least three Business Days' notice to the Agent, prepay any Fixed Base Rate Syndicated Borrowing in whole or in part on any Business Day in the amount of $10,000,000 or any larger multiple of $5,000,000 (unless such prepayment would cause the aggregate outstanding principal amount of such Fixed Base Rate Syndicated Borrowing to be less than $10,000,000, in which event prepayment may only be made in an amount equal to the outstanding unpaid principal amount of such Fixed Base Rate Syndicated Borrowing), by paying the principal amount being prepaid together with accrued interest thereon to the date of prepayment; provided, however, that the Company shall compensate the Banks pursuant to Section 5.5 for any losses or expenses incurred as a result thereof. Each prepayment in part of any Fixed Base Rate Syndicated Borrowing shall be applied to the Fixed Base Rate Syndicated Loans comprising such Borrowing of the Banks ratably in accordance with their respective shares of the aggregate outstanding principal amount of such Loans. MASCOTECH, INC. CREDIT AGREEMENT (c) Unless otherwise required by this Agreement, the Company may not prepay any Bid-Option Loan in whole or in part without the consent of the Bank that made such Bid-Option Loan.

Prepayments of Principal. The following provisions apply in respect of prepayment of the Loans by the Company: (a) The Company may prepay Floating Rate Loans Except as otherwise specifically provided in whole or in part on any Business Day in amounts aggregating $5,000,000 or any larger multiple of $5,000,000 (unless such prepayment would cause this Article 3, the aggregate outstanding Borrower shall have no right to preay the principal amount of Floating Rate Loans to be less than $5,000,000, in which event prepayment may only be made in an amount equal to the entire outstanding principal amount of Floating Rate Loans), by paying the principal amount being prepaid together with accrued interest thereon to the date of prepayment. Each prepayment in part of such Loans shall be applied to such Loans of the Banks ratably in accordance with their respective shares of the aggregate outstanding principal amount of the Floating Rate Loansany Advance or any portion thereof. (b) The Company Borrower may, upon at least three Business Days' notice without premium or penalty, prepay the outstanding principal amount of any Base Rate Advance in whole or ratably in part together with accrued interest to the Agentdate of such prepayment on the principal amount so prepaid. (c) The Borrower understands that in connection with the Bank making any 936 or LIBOR Option Rate Advance, prepay the Bank may enter into funding arrangements with third parties on terms and conditions which could result in substantial losses to the Bank if such Advance does not remain outstanding at the interest rate therefor, as determined in accordance herewith, for the entire Interest Period with respect thereto. Therefore, if either (i) after the Borrower and the Bank have agreed in respect of a 936 or a LIBOR Option Rate Advance, such Advance is not made on the first day of the Interest Period specified in such notice of borrowing for any Fixed Base reason other than (A) a suspension under clause (i) or (ii) of Section 2.6 of the right of the Borrower to select a 936 or LIBOR Option Rate Syndicated Borrowing Advance, or (B) a breach by the Bank of its obligations hereunder, or (ii) such Advance is repaid by the Borrower in whole or in part prior to the last day of such Interest Period (whether pursuant to the provisions of Section 3.9, as a result of acceleration, by operation of law or otherwise), the Borrower will pay to the Bank on the prepayment date, as liquidated damages and not as a penalty an amount required to compensate the Bank for the actual cost, if any, of any Business Day such early termination of its funding arrangements, said amount to be determined by the Bank and notified to the Borrower in a certificate in reasonable detail prepared by the amount Bank. The contents of $10,000,000 or any larger multiple said certificate shall, absent manifest error, be considered conclusive and final. (d) Borrower may repay 936 and LIBOR Rate Advances, without penalty, on their respective Interest Period roll over dates. In the event that Borrower's prepayment exceeds the sum of $5,000,000 (unless US$5,000,000, Borrower shall give the Bank prior written notice of its intention to make such prepayment would cause the aggregate outstanding principal amount of such Fixed Base Rate Syndicated Borrowing to be not less than $10,000,000, in which event prepayment may only be made in an amount equal to the outstanding unpaid principal amount of such Fixed Base Rate Syndicated Borrowing), by paying the principal amount being prepaid together with accrued interest thereon two (2) Business Days prior to the date of such prepayment; provided, however, that the Company shall compensate the Banks pursuant to Section 5.5 for any losses or expenses incurred as a result thereof. Each prepayment in part of any Fixed Base Rate Syndicated Borrowing shall be applied to the Fixed Base Rate Syndicated Loans comprising such Borrowing of the Banks ratably in accordance with their respective shares of the aggregate outstanding principal amount of such Loans. MASCOTECH, INC. CREDIT AGREEMENT (c) Unless otherwise required by this Agreement, the Company may not prepay any Bid-Option Loan in whole or in part without the consent of the Bank that made such Bid-Option Loan.

Prepayments of Principal. The following provisions apply in respect of prepayment of the Loans Loans, other than Swing Line Loans, by the Companyany Borrower: (a) The Company Borrowers may prepay Floating Rate Loans in whole or in part on any Business Day in amounts aggregating $5,000,000 or any larger multiple multiples of $5,000,000 1,000,000 in excess thereof (unless such prepayment would cause the aggregate outstanding principal amount of Floating Rate Loans to be less than $5,000,000, in which event prepayment may only be made in an amount equal to the entire outstanding principal amount of Floating Rate Loans), by paying the principal amount being prepaid together with accrued interest thereon to the date of prepayment. Each prepayment in part of such Loans shall be applied to such Loans of the Banks ratably in accordance with their respective shares of the aggregate outstanding principal amount of the Floating Rate Loans. (b) The Company Borrowers may, upon at least three Business Days' notice to the Administrative Agent, prepay any Fixed Base Eurodollar Rate Syndicated Borrowing Loan in whole or in part on any Business Day in the amount of $10,000,000 5,000,000 or any larger multiple the Approximate Equivalent Amount of $5,000,000 1,000,000 of any Alternate Currency Syndicated Loan or multiples of $1,000,000 or the Approximate Equivalent Amount of $1,000,000 of any Alternate Currency in excess thereof (unless unless, in the case of prepayment of any Eurodollar Rate Syndicated Loan, such prepayment would cause the aggregate outstanding principal amount of such Fixed Base Eurodollar Rate Syndicated Borrowing Loan to be less than $10,000,0005,000,000, in which event prepayment may only be made in an amount equal to the outstanding unpaid principal amount of such Fixed Base Eurodollar Rate Syndicated BorrowingLoan), by paying the principal amount being prepaid together with accrued interest thereon to the date of prepayment; provided, however, that the Company Borrowers shall compensate the Banks pursuant to Section 5.5 for any losses or expenses incurred as a result thereof. Each prepayment in part of any Fixed Base Eurodollar Rate Syndicated Borrowing Loan shall be applied to the Fixed Base Eurodollar Rate Syndicated Loans comprising such Borrowing of the Banks ratably in accordance with their respective shares of the aggregate outstanding principal amount of such Loans. MASCOTECH, INC. CREDIT AGREEMENT. (c) Unless otherwise required by this Agreement, the Company Borrowers may not prepay any Bid-Option Loan in whole or in part without the consent of the Bank that made such Bid-Option Loan. (d) Notwithstanding Section 4.2(a), (b) and (c), if on any date: (i) the sum of (A) the Dollar Equivalent of the aggregate outstanding principal amount of Loans plus (B) the Letter of Credit Obligations Amount exceeds the sum of the aggregate amount of the Revolving Credit Commitments and the outstanding aggregate principal amount of the Term Loans; or (ii) the Dollar Equivalent of the aggregate outstanding principal amount of Bid-Option Loans exceeds fifty percent (50%) of the sum of the Revolving Credit Commitments and the aggregate outstanding principal amount of the Term Loans; or (iii) the Dollar Equivalent of the aggregate outstanding principal amount of Alternate Currency Bid-Option Loans and the Alternate Currency Syndicated Loans exceeds $200,000,000, then the Borrowers shall pay forthwith the principal amount of such excess, together with accrued interest thereon to the date of payment; provided, however, that the Borrowers shall compensate the Banks pursuant to Section 5.5 for any losses or expenses incurred as a result thereof; and provided further, however, that (A) no such payment otherwise required under clause (i) of this Section 4.2(d) solely because of currency exchange rate fluctuations affecting the Dollar Equivalent of the aggregate outstanding principal amount of Alternate Currency Syndicated Loans or Alternate Currency Bid-Option Loans shall be required unless such payment is due on a date when a payment of principal of any Loan is otherwise due hereunder, and (B) notwithstanding clause (A) of this proviso, no such payment otherwise required under subsection (ii) or (iii) of this Section 4.2(d) shall be required if due solely because of currency exchange rate fluctuations affecting the Dollar Equivalent of the aggregate outstanding principal amount of Alternate Currency Syndicated Loans and Alternate Currency Bid-Option Loans since the last date on which any of such Alternate Currency Syndicated Loans or Alternate Currency Bid-Option Loans, as the case may be, were made. (e) Upon receipt of a notice of prepayment pursuant to this Section, the Administrative Agent shall promptly notify each Bank of the contents thereof and of such Bank's share (in accordance with Section 4.4) of such prepayment. Each such notice shall be irrevocable by the Borrowers once the Administrative Agent begins notifying any Bank of the contents thereof. (f) At any time that the most recently determined Senior Debt Coverage Ratio is greater than 3.0 to 1.0 (after giving pro forma effect to the application of proceeds prescribed herein below), upon the consummation of any Asset Sale or any Financing by MascoTech or any of its Consolidated Subsidiaries (other than (i) sales of inventory in the ordinary course of business and (ii) sales or other dispositions of equipment which in the reasonable judgment of MascoTech is no longer used or useful in the business of MascoTech) except to the extent that the Net Cash Proceeds of such Asset Sale, when combined with the Net Cash Proceeds of all such Asset Sales during the immediately preceding twelve-month period, do not exceed $25,000,000, and except as provided in the immediately succeeding sentence, within three (3) Business Days after MascoTech's or any of its Subsidiaries' receipt of any Net Cash Proceeds from any such Asset Sale or Financing, the Borrowers shall make a mandatory prepayment in an amount equal to one hundred percent (100%) of such Net Cash Proceeds or such lesser amount as is sufficient to reduce the Senior Debt Coverage Ratio (calculated using EBITDA for the most recently concluded four fiscal quarter period and using Debt as of the last day of such four fiscal quarter period, taking into account the reduction in such Debt as a result of such mandatory prepayment on a pro forma basis) to 3.0 to 1.0. Net Cash Proceeds of Asset Sales of capital assets with respect to which the Borrowers shall have given the Agent written notice of its intention to replace such capital assets within six months following such Asset Sale shall not be subject to the provisions of the preceding sentence unless and to the extent that such applicable period shall have expired without such replacement having been made. Each such mandatory prepayment shall be applied first to the Term Loan installment due January 31, 2002 and after such installment is paid in full to each of the then remaining installments payable under the Term Loans in the inverse order of maturity; and following the payment in full of the Term Loans, the amount of each such prepayment shall be applied to repay Revolving Loans (but shall reduce Revolving Loan Commitments only at the option of the Borrowers). Subject to the preceding provisions of this Section 4.2(f), all of the mandatory prepayments made pursuant to this Section 4.2(f) shall be applied first to Floating Rate Loans and to any Eurodollar Rate Loans maturing on such date. The Administrative Agent shall hold the remaining portion of such mandatory prepayment as cash collateral in an interest bearing deposit account and shall apply funds from such account to Eurodollar Rate Loans at the end of the applicable Interest Period. (g) All voluntary prepayments of the Term Loans shall be applied, at the Borrowers' option, either to the installment due January 31, 2002 or to the other remaining installments of the Term Loans, pro rata, or any combination of the foregoing. (h) If on the last Business Day of any month, the Dollar Equivalent of all outstanding Alternate Currency Syndicated Loans under the Alternate Currency Addenda exceeds 105% of the aggregate Alternate Currency Commitments with respect thereto, the applicable Borrowers shall on such date prepay Alternate Currency Syndicated Loans in an aggregate amount such that after giving effect thereto the Dollar Equivalent of all such Alternate Currency Syndicated Loans is less than or equal to the aggregate Alternate Currency Commitments with respect thereto.