Common use of Continuing Liens Clause in Contracts

Continuing Liens. Lender Type of Debt Amount ------ ------------ ------ Machinery to measure noise level and to laser etch bearings G.E. Capital $ 360,000 CNC Lathe G.E. Capital 113,900 2 Rotorpaks for trash disposal G.E. Capital 29,650 --------- Total G.E. CAPITAL $ 503,550 1996 Buick Century HSBC 4,264 1997 Buick LeSabre GMAC 4,646 --------- TOTAL CONTINUING LIENS $ 512,460 Schedule 7.3(j) EXISTING GMAC LETTERS OF CREDIT L/C L/C Issue Expiration Number Balance Payee Date Date ------ ------- ----- ---- ---- 347937 $296,745.01 Samara 06/04/99 01/31/00 348154 62,653.23 SMEC 07/30/99 01/21/00 348303 120,562.56 Shanghai ▇▇▇▇ ▇▇▇▇ Motors 09/09/99 01/21/00 348341 228,391.50 SPGBC 09/20/99 02/10/00 348357 36,596.70 Yuyao Foreign Trade 09/24/99 11/21/99 348426 878,300.77 Yuyao Foreign Trade 10/14/99 02/10/00 348503 147,796.02 China First Automobile 11/04/99 02/11/00 348593 61,173.99 Shanghai ▇▇▇▇ ▇▇▇▇ Motors 12/07/99 01/21/00 348594 118,901.64 SMEC 12/06/99 01/21/00 348605 148,399.39 Shanghai Dongyu 12/09/99 01/31/00 ------------- TOTAL: $2,099,520.81 EXHIBIT A REVOLVING NOTE West Nyack, New York $21,000,000 December 20, 1999 FOR VALUE RECEIVED, the undersigned, GENERAL BEARING CORPORATION, a Delaware corporation (the "Borrower"), hereby unconditionally promises to pay to the order of KeyBank National Association (the "Lender"), located at Key ▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ on the Stated Maturity Date for all Revolving Loans, the principal amount of TWENTY ONE MILLION DOLLARS ($21,000,000) in lawful money of the United States and in immediately available funds or, if less, the aggregate unpaid principal amount of all Revolving Loans made by the Lender to the Borrower pursuant to that Section 2.3 of the Credit Agreement, dated as of December 20, 1999 (as amended, supplemented or otherwise modified from time to time, the "Credit Agreement") among General Bearing Corporation (the "Borrower"), various financial institutions as are, or may be from time to time parties thereto (the "Lenders"), and KeyBank National Association, as Administrative Agent, which principal amount, together with certain other information, shall be noted by the Lender on the schedules attached hereto (and any continuation thereof). Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. The Borrower also promises to pay interest in like money at such office on the unpaid principal amount hereof from time to time outstanding at the rates and on the dates specified in Section 2.6 of the Credit Agreement from the date hereof until maturity (whether by acceleration or otherwise) and, after maturity, until paid. This Note is (a) one of the Revolving Notes referred to in the Credit Agreement, (b) is subject to the provisions of the Credit Agreement and (c) is subject to optional and mandatory prepayment in whole or in part as provided in the Credit Agreement. This Note is secured and guaranteed by the Loan Documents. Reference is made hereby to the Loan Documents for a description of the properties and assets in which a security interest has been granted, the nature and extent of the security and guarantees, the terms and conditions upon which the security interests and each guarantee were granted and the rights of the holder of this Note in respect thereof. The Borrower hereby irrevocably authorizes the Lender to make (or cause to be made) appropriate notations on the grid attached hereto (or on any continuation of such grid), which notations, if made, shall evidence, inter alia, the date of and the outstanding principal of, the Revolving Loans evidenced hereby. Such notations shall be prima facie evidence of the accuracy of the information so set forth; provided, however, that the failure of the Lender to make any such notations shall not limit or otherwise affect any Obligations of the Borrower. ANY ASSIGNMENT OR TRANSFER OF ALL OR A PART OF A LOAN EVIDENCED BY THIS NOTE WILL BE REGISTERED UPON THE REGISTER ONLY UPON SURRENDER FOR REGISTRATION OF ASSIGNMENTS OR TRANSFER OF THIS NOTE, ACCOMPANIED BY A DULY EXECUTED ASSIGNMENT AND ACCEPTANCE. All parties hereto, whether as makers, endorsers, or otherwise, severally waive presentment for payment, demand, protest and notice of dishonor. THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO CONFLICT OF LAW PRINCIPLES THEREOF. GENERAL BEARING CORPORATION By:_______________________________ Name: Title: LOANS, CONVERSIONS AND REPAYMENTS OF ABR LOANS ==================================================================================================================================== Amount of Principal Amount of ABR Loans Unpaid Principal Amount of ABR Amount Converted to of ABR Loans Converted to Balance of ABR Date Loans ABR Loans Repaid Eurodollar Loans Loans Notation Made By ==================================================================================================================================== ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ 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------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ==================================================================================================================================== Schedule B to Revolving Credit Note LOANS, CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF EURODOLLAR LOANS ==================================================================================================================================== Amount of Unpaid Principal Principal Amount of Eurodollar Balance of Amount of Amount Converted to of Eurodollar Loans Loans Converted to Eurodollar Date Eurodollar Loans Eurodollar Loans Repaid ABR Loans Loans Notation Made By 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==================================================================================================================================== EXHIBIT B-1 TO THE CREDIT AGREEMENT FORM OF BORROWING REQUEST KeyBank National Association as Administrative Agent Key Bank Plaza ▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ Attention: Portfolio Manager GENERAL BEARING CORPORATION Gentlemen and Ladies: This Borrowing Request is delivered to you pursuant to Section 2.3 of the Credit Agreement, dated as of December __, 1999 (as amended, supplemented or otherwise modified from time to time, the "Credit Agreement") among General Bearing Corporation (the "Borrower"), various financial institutions as are, or may be from time to time parties thereto (the "Lenders"), and KeyBank National Association, as Administrative Agent. Unless otherwise defined herein, capitalized terms used herein have the meanings provided in the Credit Agreement. The Borrower hereby requests that a [Revolving Loan] [Term Loan] be made in the aggregate principal amount of $______________ on __________________, ____ as a(n) [Eurodollar Loan having an Interest Period of [one] [two] [three] [six] month(s)] or [ABR Loan]. The Borrower hereby acknowledges that, pursuant to Section 5.3.1 of the Credit Agreement, each of the delivery of this Borrowing Request and the acceptance by the Borrower of the proceeds of the Loans requested hereby constitute a representation and warranty by the Borrower that, on the date of such Loans, and immediately before and after giving effect thereto and to the application of the proceeds therefrom, the statements set forth in Section 5.3.1 of the Credit Agreement are true and correct. The Borrower agrees that if prior to the time of the Borrowing requested any matter certified to herein by it will not be true and correct at such time as if then made, it will immediately so notify the Administrative Agent. Except to the extent, if any, that prior to the time of the Borrowing requested hereby the Administrative Agent shall receive written notice to the contrary from the Borrower, each matter certified to herein shall be deemed once again to be certified as true and correct at the date of such Borrowing as if then made. Please wire transfer the proceeds of the Borrowing to the accounts of the following persons at the financial institutions indicated respectively: Person to be Paid ----------------- Amount to be Name, Account No., Transferred Address, etc . -------------- ------------------ $______________ _________________________ _________________________ Attention:_______________ $______________ _________________________ _________________________ Attention:_______________ $______________ The Borrower ______________ _________________________ _________________________ Attention:_______________

Continuing Liens. Lender Type of Debt Amount ------ ------------ ------ Machinery to measure noise level and to laser etch bearings G.E. Capital $ 360,000 CNC Lathe G.E. Capital 113,900 2 Rotorpaks for trash disposal G.E. Capital 29,650 --------- Total G.E. CAPITAL $ 503,550 1996 Buick Century HSBC 4,264 1997 Buick LeSabre GMAC 4,646 --------- TOTAL CONTINUING LIENS $ 512,460 Schedule 7.3(j) EXISTING GMAC LETTERS OF CREDIT L/C L/C Issue Expiration Number Balance Payee Date Date ------ ------- ----- ---- ---- 347937 $296,745.01 Samara 06/04/99 01/31/00 348154 62,653.23 SMEC 07/30/99 01/21/00 348303 120,562.56 Shanghai ▇▇▇▇ ▇▇▇▇ Motors 09/09/99 01/21/00 348341 228,391.50 SPGBC 09/20/99 02/10/00 348357 36,596.70 Yuyao Foreign Trade 09/24/99 11/21/99 348426 878,300.77 Yuyao Foreign Trade 10/14/99 02/10/00 348503 147,796.02 China First Automobile 11/04/99 02/11/00 348593 61,173.99 Shanghai ▇▇▇▇ ▇▇▇▇ Motors 12/07/99 01/21/00 348594 118,901.64 SMEC 12/06/99 01/21/00 348605 148,399.39 Shanghai Dongyu 12/09/99 01/31/00 ------------- TOTAL: $2,099,520.81 EXHIBIT A REVOLVING NOTE West Nyack, New York $21,000,000 December 20, 1999 FOR VALUE RECEIVED, the undersigned, GENERAL BEARING CORPORATION, ACKNOWLEDGEMENT AND CONSENT The undersigned hereby acknowledges receipt of a Delaware corporation (the "Borrower"), hereby unconditionally promises to pay to the order of KeyBank National Association (the "Lender"), located at Key ▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ on the Stated Maturity Date for all Revolving Loans, the principal amount of TWENTY ONE MILLION DOLLARS ($21,000,000) in lawful money copy of the United States Guarantee and in immediately available funds or, if less, the aggregate unpaid principal amount of all Revolving Loans made by the Lender to the Borrower pursuant to that Section 2.3 of the Credit Agreement, Collateral Agreement dated as of December 20, 1999 (as amended, supplemented or otherwise modified from time to time, the "Credit Agreement") among General Bearing Corporation (the "Borrower"), various financial institutions as are, or may be from time to time made by the Grantors parties thereto (for the "Lenders"), and KeyBank National Association, as Administrative Agent, which principal amount, together with certain other information, shall be noted by the Lender on the schedules attached hereto (and any continuation thereof). Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. The Borrower also promises to pay interest in like money at such office on the unpaid principal amount hereof from time to time outstanding at the rates and on the dates specified in Section 2.6 benefit of the Credit Agreement from the date hereof until maturity (whether by acceleration or otherwise) and, after maturity, until paid. This Note is (a) one of the Revolving Notes referred to in the Credit Agreement, (b) is subject to the provisions of the Credit Agreement and (c) is subject to optional and mandatory prepayment in whole or in part as provided in the Credit Agreement. This Note is secured and guaranteed by the Loan Documents. Reference is made hereby to the Loan Documents for a description of the properties and assets in which a security interest has been granted, the nature and extent of the security and guarantees, the terms and conditions upon which the security interests and each guarantee were granted and the rights of the holder of this Note in respect thereof. The Borrower hereby irrevocably authorizes the Lender to make (or cause to be made) appropriate notations on the grid attached hereto (or on any continuation of such grid), which notations, if made, shall evidence, inter alia, the date of and the outstanding principal of, the Revolving Loans evidenced hereby. Such notations shall be prima facie evidence of the accuracy of the information so set forth; provided, however, that the failure of the Lender to make any such notations shall not limit or otherwise affect any Obligations of the Borrower. ANY ASSIGNMENT OR TRANSFER OF ALL OR A PART OF A LOAN EVIDENCED BY THIS NOTE WILL BE REGISTERED UPON THE REGISTER ONLY UPON SURRENDER FOR REGISTRATION OF ASSIGNMENTS OR TRANSFER OF THIS NOTE, ACCOMPANIED BY A DULY EXECUTED ASSIGNMENT AND ACCEPTANCE. All parties hereto, whether as makers, endorsers, or otherwise, severally waive presentment for payment, demand, protest and notice of dishonor. THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO CONFLICT OF LAW PRINCIPLES THEREOF. GENERAL BEARING CORPORATION By:_______________________________ Name: Title: LOANS, CONVERSIONS AND REPAYMENTS OF ABR LOANS ==================================================================================================================================== Amount of Principal Amount of ABR Loans Unpaid Principal Amount of ABR Amount Converted to of ABR Loans Converted to Balance of ABR Date Loans ABR Loans Repaid Eurodollar Loans Loans Notation Made By ==================================================================================================================================== ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ 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------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ==================================================================================================================================== Schedule B to Revolving Credit Note LOANS, CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF EURODOLLAR LOANS ==================================================================================================================================== Amount of Unpaid Principal Principal Amount of Eurodollar Balance of Amount of Amount Converted to of Eurodollar Loans Loans Converted to Eurodollar Date Eurodollar Loans Eurodollar Loans Repaid ABR Loans Loans Notation Made By 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==================================================================================================================================== EXHIBIT B-1 TO THE CREDIT AGREEMENT FORM OF BORROWING REQUEST KeyBank National Association as Administrative Agent Key Bank Plaza ▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ Attention: Portfolio Manager GENERAL BEARING CORPORATION Gentlemen and Ladies: This Borrowing Request is delivered to you pursuant to Section 2.3 of the Credit Agreement, dated as of December __, 1999 (as amended, supplemented or otherwise modified from time to time, the "Credit Agreement") among General Bearing Corporation (the "Borrower"), various financial institutions as are, or may be from time to time parties thereto (the "Lenders"), and KeyBank National Association, as Administrative Agent. Unless otherwise defined herein, capitalized terms used herein have The undersigned agrees for the meanings provided in the Credit Agreement. The Borrower hereby requests that a [Revolving Loan] [Term Loan] be made in the aggregate principal amount benefit of $______________ on __________________, ____ as a(n) [Eurodollar Loan having an Interest Period of [one] [two] [three] [six] month(s)] or [ABR Loan]. The Borrower hereby acknowledges that, pursuant to Section 5.3.1 of the Credit Agreement, each of the delivery of this Borrowing Request and the acceptance by the Borrower of the proceeds of the Loans requested hereby constitute a representation and warranty by the Borrower that, on the date of such Loans, and immediately before and after giving effect thereto and to the application of the proceeds therefrom, the statements set forth in Section 5.3.1 of the Credit Agreement are true and correct. The Borrower agrees that if prior to the time of the Borrowing requested any matter certified to herein by it will not be true and correct at such time as if then made, it will immediately so notify the Administrative Agent. Except to the extent, if any, that prior to the time of the Borrowing requested hereby the Administrative Agent shall receive written notice to and the contrary from the Borrower, each matter certified to herein shall be deemed once again to be certified Lenders as true and correct at the date of such Borrowing as if then made. Please wire transfer the proceeds of the Borrowing to the accounts of the following persons at the financial institutions indicated respectively: Person to be Paid ----------------- Amount to be Name, Account No., Transferred Address, etc . -------------- ------------------ $______________ _________________________ _________________________ Attentionfollows:_______________ $______________ _________________________ _________________________ Attention:_______________ $______________ The Borrower ______________ _________________________ _________________________ Attention:_______________