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EX-10.2 LETTER WAIVER

Forbearance Agreement

EX-10.2 LETTER WAIVER | Document Parties: POLYONE CORP | Citicorp USA, Inc., You are currently viewing:
This Forbearance Agreement involves

POLYONE CORP | Citicorp USA, Inc.,

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Title: EX-10.2 LETTER WAIVER
Date: 7/28/2005
Industry: Chemicals - Plastics and Rubber    

EX-10.2 LETTER WAIVER, Parties: polyone corp , citicorp usa  inc.
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                                                                    EXHIBIT 10.2

 

                                  LETTER WAIVER

 

                                             Dated as of June 29, 2005

 

To the banks, financial institutions

   and other institutional lenders

   (collectively, the "Lenders")

   parties to the Credit Agreement referred to below

   and to Citicorp USA, Inc., as agent

   (the "Administrative Agent") for the Lenders

 

Ladies and Gentlemen:

 

            We refer to the Amended and Restated Credit Agreement dated as of

May 6, 2003, as amended by Amendment No. 1 dated as of August 27, 2003,

Amendment No. 2 dated as of September 25, 2003 and Amendment No. 3 and Waiver

dated as of August 5, 2004 (such Amended and Restated Credit Agreement, as so

amended, the "Credit Agreement") among the undersigned and you. Capitalized

terms not otherwise defined in this Letter Waiver have the same meanings as

specified in the Credit Agreement.

 

            The Borrower has requested, and subject to the terms and conditions

hereinafter set forth, the Required Lenders hereby agree, to waive the

requirements under (i) Section 5.03(a) of the Credit Agreement that the Borrower

maintain an Interest Coverage Ratio of not less than 2.50:1 and (ii) Section

5.03(b) of the Credit Agreement that the Borrower maintain a Borrowed

Debt/Adjusted EBITDA Ratio of not more than 4.50:1, in each case solely in

respect of the fiscal quarter commencing on April 1, 2005 through June 30, 2005

and in each case for all purposes under the Credit Agreement and the other Loan

Documents.

 

            This Letter Waiver shall become effective as of the date first above

written when, and only when, the A


 
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