Item
1.01
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ENTRY
INTO A MATERIAL DEFINITIVE AGREEMENT
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1)
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Revolving
Credit: an aggregate $85 million secured revolving credit facility
which includes sublimits for the issuance of standby letters of credit,
swingline loans and multi-currency borrowings in certain specified foreign
currencies.
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2)
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Fees and Interest
Rates: Commitment fees and interest rates are determined on the
basis of either a Eurocurrency rate or a Base rate (in the case of
swingline loans) plus an applicable margin based upon the Corporation’s
Total Leverage Ratio (as defined in the Revolving Credit
Agreement).
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3)
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Accordion
Feature: Provisions permitting the Corporation on a one time basis
to increase the aggregate amount of the credit facility by up to $65
million with additional commitments from the Revolving Loan Lenders, as
they may agree, or new commitments from financial institutions acceptable
to the Administrative Agent and the Corporation in their reasonable
discretion.
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4)
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Prepayments:
Provisions permitting the Corporation to voluntarily prepay borrowings in
whole or in part at any time, and provisions requiring certain mandatory
prepayments on the occurrence of certain events which will permanently
reduce the commitments under the Revolving Credit Agreement, each without
premium or penalty, subject to reimbursement of certain costs of the
Revolving Loan Lenders.
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5)
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Reduction of
Commitment: The Corporation may irrevocably cancel, in whole or in
part, the unutilized portion of the commitments under the Revolving Credit
Agreement in excess of any outstanding Loans, the stated amount of all
outstanding letters of credit and all unreimbursed amounts drawn under any
letters of credit.
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6)
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Corporation
Covenants: Provisions containing covenants required of the
Corporation and its subsidiaries including various affirmative and
negative financial and operational covenants. Key financial covenants
include a minimum fixed charge coverage ratio of 1.25x, a maximum total
leverage ratio, net of cash, of 3.75x through June 30, 2010 and 3.5x
thereafter, and maximum annual capital expenditures of $15 million in
fiscal 2010 and $18 million thereafter excluding capital expenditures
required for a global ERP system.
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Item
2.03
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CREATION
OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN
OFF-BALANCE SHEET AGREEMENT OF A REGISTRANT
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EXHIBIT NUMBER
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DESCRIPTION
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10.1
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Credit
Agreement dated as of December 31, 2009
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COLUMBUS
McKINNON CORPORATION
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||
By:
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/s/ Karen
L.
Howard
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Name:
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Karen
L. Howard
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Title:
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Vice
President and Chief
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Financial
Officer (Principal Financial
Officer)
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EXHIBIT NUMBER
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DESCRIPTION
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10.1
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Credit
Agreement dated as of December 31, 2009
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