EX-10 2 exhibit.txt EXHIBIT 10.1 Exhibit 10.1 March 31, 2005 The Borrowers party to the Credit Agreement described below One Invacare Way Elyria, Ohio 44035 Attention: Chief Financial Officer Re: Credit Agreement dated as of January 14, 2005 (the "Credit Agreement"), among Invacare Corporation (the "Company"), each of the Borrowing Subsidiaries party thereto (collectively with the Company, the "Borrowers"), the banks set forth on the signature pages hereof (together with their successors and assigns, collectively, the "Banks" and each individually a "Bank") and JPMorgan Chase Bank, N.A., a national banking association, as agent for the Bank (in such capacity, the "Agent"). Ladies/ Gentlemen: Pursuant to Section 2.4(c) of the Credit Agreement, the Company has requested that the Agent and the Banks increase the Aggregate Commitment under the Credit Agreement by $50,000,000, resulting in an Aggregate Commitment of $500,000,000. The effective date of such increase shall be April 4, 2005 (the "Effective Date"). The form of Schedule 1.1 attached to this letter reflects the increased Aggregate Commitment and each Bank's Commitment after giving effect to such increase (including the increased Commitment of any Bank which has consented to an increase in its Commitment). The form of Schedule 1.1 attached to this letter shall replace the existing Schedule 1.1 to the Credit Agreement as of the Effective Date; provided, however, that each of the Company, the Banks and the Agent acknowledges and agrees that any outstanding Fixed Rate Revolving Credit Loans shall remain outstanding under the Pro Rata Shares of the Banks prior to giving effect to the new Schedule 1.1 through the last day of the Interest Period for any such Loan and the Company shall not be required to prepay any such Fixed Rate Revolving Credit Loans and reborrow under Loans under the revised Pro Rata Shares. Any new Loans made on and after April 4, 2005 (including any continuations of any existing Fixed Rate Revolving Credit Loans) shall be funded by the Banks based on the Commitments set forth on Schedule 1.1 attached hereto. In connection with such request, the Company hereby certifies: (i) no Default has occurred and is continuing hereunder as of the date hereof and no Default shall have occurred and be continuing as of the Effective Date; and (ii) the representations and warranties made by the Borrowers and contained in Article IV of the Credit Agreement are true and correct in all material respects on and as of the Effective Date with the same effect as if made on and as of such date (other than those representations and warranties that by their terms speak as of a particular date, which representations and warranties shall be true and correct as of such particular date). Except as expressly set forth above, neither the Credit Agreement nor any other Loan Document is amended or modified nor are any of the terms or provisions thereof waived. The Company agrees that the Credit Agreement and all other Loan Documents are ratified and confirmed and shall remain in full force and effect and that they have no set off, counterclaim, defense or other claim or dispute with respect to any of the foregoing. All capitalized terms used but not defined herein shall have the meanings ascribed thereto in the Credit Agreement. The terms and provisions of this letter shall be effective when it is signed by each of the Banks which is increasing its Commitment pursuant hereto, the Agent and the Company. This letter may be executed in any number of counterparts, and telecopied signature pages shall be enforceable as originals. Very truly yours, JPMORGAN CHASE BANK, N.A., as a Lender and as Agent By /s/ Dana E. Jurgens Title Director KEYBANK NATIONAL ASSOCIATION, as a Bank and Syndication Agent By /s/ Chris Swindell Title Senior Vice President NATIONAL CITY BANK, as a Bank and Documentation Agent By /s/ Robert C. Coleman Title Senior Vice President BANK OF AMERICA, N.A., as a Bank and Documentation Agent By /s/ B. Kenneth Burton Title Vice President CALYON NEW YORK BRANCH By /s/ Charles Heidsieck Title Managing Director By /s/ Thomas Randolph Title Director HARRIS TRUST AND SAVINGS BANK By /s/ Mark Piekos Title Director NORDEA BANK FINLAND PLC, NEW YORK BRANCH By /s/ Henrik M. Steffensen Title First Vice President By /s/ Gerald E. Chelius, Jr. Title SVP Credit PNC BANK, NATIONAL ASSOCIATION By /s/ Joseph G. Moran Title Managing Director SUNTRUST BANK By /s/ William D. Priester Title Director THE BANK OF NEW YORK By /s/ William Barn Title Vice President COOPERATIEVE CENTRALE RAIFFEISEN- BOERENLEENBANK B.A. "RABOBANK INTERNATIONAL", NEW YORK BRANCH By /s/ Robert M. Mandula Title Executive Director By /s/ Rebecca O. Morrow Title Executive Director The above is acknowledged, accepted and agreed to by the undersigned: INVACARE CORPORATION, as the Company and as Treasury Manager on behalf of each Borrower By /s/ Ronn Claussen Title Vice President and Treasurer SCHEDULE 1.1 COMMITMENTS April 4, 2005 -------------------------------------------------------------------------------- COMMITMENTS ================================================================================ ----------------------------------------------- -------------------------------- Bank Commitment ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- JPMorgan Chase Bank, N.A. $70,500,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- KeyBank National Association 70,500,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- National City Bank 56,750,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- Bank of America, NA. 56,750,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- Calyon New York Branch 40,000,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- Harris Bank Trust and Savings 38,750,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- Nordea Bank Finland Plc, New York Branch 39,000,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- PNC Bank, National Association 39,000,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- SunTrust Bank 38,750,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- The Bank of New York 25,000,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- Rabobank International, New York Branch 25,000,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- $500,000,000 ----------------------------------------------- -------------------------------- -------------------------------------------------------------------------------- REVOLVING CREDIT COMMITMENTS ================================================================================ ----------------------------------------------- -------------------------------- Bank Revolving Credit Commitment ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- JPMorgan Chase Bank, N.A. $42,500,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- KeyBank National Association 70,500,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- National City Bank 39,250,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- Bank of America, NA. 56,750,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- Calyon New York Branch 40,000,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- Harris Bank Trust and Savings 14,250,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- Nordea Bank Finland Plc, New York Branch 39,000,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- PNC Bank, National Association 39,000,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- SunTrust Bank 38,750,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- The Bank of New York 25,000,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- Rabobank International, New York Branch 25,000,000 ----------------------------------------------- -------------------------------- ----------------------------------------------- -------------------------------- $430,000,000 ----------------------------------------------- -------------------------------- -------------------------------------------------------------------------------- ALTERNATE CURRENCY COMMITMENTS ================================================================================ Bank Alternate Currency Alternate Currency Facility ---------------------------------- ------------------ ------------------ ---------------------------------- ------------------ ------------------ JPMorgan Chase Bank, N.A. Canadian Dollars USD $28,000,000 ---------------------------------- ------------------ ------------------ ---------------------------------- ------------------ ------------------ National City Bank Canadian Dollars USD $17,500,000 ---------------------------------- ------------------ ------------------ ---------------------------------- ------------------ ------------------ Harris Bank Trust and Savings Canadian Dollars USD $24,500,000 ---------------------------------- ------------------ ------------------