AMENDMENT NO. 1 to the AMENDED AND RESTATED CREDIT AGREEMENT Dated as of February 17, 2009
Exhibit 10(v)(a)
Dated as of February 17, 2009
AMENDMENT NO. 1 (this “Amendment”) dated as of the date first above written among The
Xxxxxxx Works (the “Company”) and the Lenders executing this Amendment on the signature
pages hereto.
WHEREAS, the Company, the Lenders party thereto and Citibank, N.A., as administrative agent
(the “Administrative Agent”), are parties to an Amended and Restated Credit Agreement dated
as of February 27, 2008 (the “Credit Agreement”), providing, subject to the terms and
conditions thereof, for revolving credit loans to be made to the Company and the Designated
Borrowers; and
WHEREAS, the parties hereto wish to amend the Credit Agreement in certain respects;
NOW THEREFORE, the parties hereto hereby agree as follows:
Section 1. Definitions. Except as otherwise defined in this Amendment, terms defined
in the Credit Agreement are used herein as defined therein. References in the Credit Agreement
(including references to the Credit Agreement as amended hereby) to “this Agreement” (and indirect
references such as “hereunder”, “hereby”, “herein” and “hereof”) shall be deemed to be references
to the Credit Agreement as amended hereby.
Section 2. Amendments to the Credit Agreement. Subject to satisfying the conditions
precedent in Section 4 hereof, but with effect as of the date hereof, the Credit Agreement is
hereby amended to delete the stricken text (indicated textually in the same manner as the following
example: stricken text) and to add the underlined text (indicated textually in the same manner as
the following example: double-underlined text) as set forth in Annex A hereto.
Section 3. Representations and Warranties. The Company represents and warrants to
the Lenders and the Administrative Agent, as to itself and each of its subsidiaries, that (a) the
representations and warranties set forth in Article IV of the Credit Agreement and in each of the
other Loan Documents that have been entered into by the Company or any of the Designated Borrowers,
are true and correct in all material respects on the date hereof as if made on and as of the date
hereof (or, if any such representation or warranty is expressly stated to have been made as of a
specific date, such representation or warranty shall be true and correct in all material respects
as of such specific date) and as if each reference in said Article IV to “this Agreement” included
reference to this Amendment; provided that (x) in Sections 4.01(f) and 4.01(h) of the Credit
Agreement, the reference to the Company’s Annual Report on Form 10-K for the year ended December
29, 2007 shall be deemed to be a reference to such Annual Report and each of the Company’s reports
on Form 8-K and 10-Q during the period from February 27, 2008 through and including September 27,
2008 and (y) in Section 4.01(g) of the Credit Agreement, the reference to December 29, 2007 shall
be deemed to be a reference to September
27, 2008 and (b) no Default or Event of Default has occurred and is continuing.
Section 4. Conditions Precedent. The amendments set forth in Section 2 hereof shall
become effective, as of the date hereof, upon satisfaction of the following conditions:
4.01. Execution. The Administrative Agent shall have received counterparts of
this Amendment executed by the Company and the Lenders party to the Credit Agreement
constituting the Required Lenders.
4.02. Amendment Fee. The Administrative Agent shall have received for the
account of each Lender, an amendment fee in an amount equal to 0.10% of the aggregate amount
of the Commitment of each Lender on the date hereof.
4.03 Fee and Expenses. The Company shall have paid in full the costs, expenses
and fees as set forth in Section 8.04(a) of the Credit Agreement.
4.04. Opinion of Counsel to Company. The Administrative Agent shall have
received favorable opinions of counsel for the Company (which counsel shall be reasonably
satisfactory to the Administrative Agent), in form and substance reasonably satisfactory to
the Administrative Agent and covering such matters (including as to the enforceability of
this Amendment and the Credit Agreement as amended hereby, the valid organization, good
standing and due authorization of the Company, and the lack of any conflicts of the Company
(including with respect to any material agreements)) as the Administrative Agent shall
reasonably request.
4.05. Corporate Documents. The Administrative Agent shall have received
certified copies of the charter and by-laws of the Company and of all corporate authority
for the Company (including, without limitation, board of director resolutions and evidence
of the incumbency of officers for the Company) with respect to the execution, delivery and
performance of this Amendment and the Credit Agreement as amended hereby (and the
Administrative Agent and each Lender may conclusively rely on such certificate until it
receives notice in writing from the Company to the contrary).
Section 5. Miscellaneous. Except as herein provided, the Credit Agreement shall
remain unchanged and in full force and effect. This Amendment may be executed in any number of
counterparts, all of which taken together shall constitute one and the same amendatory instrument
and any of the parties hereto may execute this Amendment by signing any such counterpart. Delivery
of a counterpart by electronic transmission shall be effective as delivery of a manually executed
counterpart hereof. This Amendment shall be governed by, and construed in accordance with, the law
of the State of New York.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their
respective authorized officers as of the day and year first above written.
| THE XXXXXXX WORKS |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| LENDERS CITIBANK, N.A. |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| XXXXX FARGO BANK, N.A. |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| XXXXXXX STREET LLC |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| BARCLAYS BANK PLC |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| BNP PARIBAS |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
| THE BANK OF NEW YORK MELLON |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| BANK OF AMERICA, N.A. |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| HSBC BANK USA, NATIONAL ASSOCIATION |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| X.X. XXXXXX XXXXX BANK, N.A. |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| XXXXXXX XXXXX BANK USA |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| XXXXXX XXXXXXX BANK, N.A. |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| ROYAL BANK OF CANADA |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| WACHOVIA BANK, N.A. |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| THE NORTHERN TRUST COMPANY |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| UBS LOAN FINANCE LLC |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
Annex A
Amendments to the Credit Agreement
[Attached]
CREDIT AGREEMENT
This AMENDED AND RESTATED CREDIT AGREEMENT (as amended, supplemented or otherwise modified
from time to time, the “Agreement”) is made as of this 27th day of February,
2008 between THE XXXXXXX WORKS, a Connecticut corporation (the “Company”), the banks,
financial institutions and other institutional lenders (the “Initial Lenders”) listed on
the signature pages hereof, and CITIBANK, N.A. (“Citibank”), as administrative agent (in
such capacity, the “Administrative Agent”) for the Lenders (as hereinafter defined).
The Company, certain banks, financial institutions and other institutional lenders and the
Administrative Agent are parties to a Credit Agreement dated as of December 1, 2005 (as amended,
supplemented or otherwise modified from time to time, and as in effect on the date hereof, the
“Existing Credit Agreement”), providing for the making of loans by such banks, financial
institutions and other institutional lenders to the Company in an aggregate principal amount at any
one time outstanding not exceeding $550,000,000.
The parties hereto wish to amend the Existing Credit Agreement to, among other things,
increase the aggregate amount of the Commitments to $800,000,000 and make certain other amendments
and to restate the entire Existing Credit Agreement, as so amended, as set forth herein.
Accordingly, subject to the occurrence of the Effective Date (as defined below), the parties
hereto hereby agree that the Existing Credit Agreement is amended and restated to read in its
entirety as follows:
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Certain Defined Terms. As used in this Agreement, the following terms
shall have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined):
“Acquiring Person” means any person (other than the ESOP) who is or becomes the
beneficial owner, directly or indirectly, of 10% or more of the Company’s outstanding common stock.
“Additional Commitment Agreement” has the meaning provided in Section 2.01(d)(iii).
“Additional Commitment Lender” has the meaning provided in Section 2.01(d)(iii).
“Advance” means a Committed Advance or an Uncommitted Advance. For the purposes of
determining the unutilized amount of each Lender’s Commitment at any time, the
amount of each Advance of such Lender that is outstanding in an Alternate Currency shall be deemed
to be the Dollar Equivalent of the amount of such Advance.
“Administrative Agent’s Account” means, with respect to any Currency, the account of
the Administrative Agent maintained by the Administrative Agent for such Currency and most recently
designated by it by notice to the Lenders and the Company.
“Affiliate” means, with respect to a specified Person, another Person that directly,
or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.
“Agent’s Group” has the meaning provided in Section 7.02(b).
“Alternate Currencies” means Euros and Pounds Sterling.
“Applicable Eurocurrency Margin” means, on any date for each Eurocurrency Rate Advance,
the rate per annum equal to the arithmetical mean of the five-year credit default swap mid-rate
spreads of the Company (the “Credit Default Swap Spread”) (as provided by Markit Group Limited (or
any successor thereto) to the Administrative Agent) for each Business Day during the period of 30
days (the “Calculation Period”) immediately preceding but not including the day which falls two
Business Days prior to the first day of the applicable Interest Period for such Advance; provided,
that the Applicable Eurocurrency Margin shall in no event be less than a rate per annum equal to
0.75% or greater than a rate per annum equal to 2.50%; provided, further, that if the Applicable
Eurocurrency Margin is unavailable on any Business Day during the Calculation Period, the
arithmetical mean shall be calculated based on the actual number of Business Days within the
Calculation Period for which such rate is available.
If at any time the Applicable Eurocurrency Margin cannot be determined or is otherwise
unavailable, the Company and the Required Lenders shall negotiate in good faith (for a period of up
to thirty days after the Applicable Eurocurrency Margin first becomes unavailable (such thirty-day
period, the “Negotiation Period”)) to agree on an alternative method for establishing the
Applicable Eurocurrency Margin. The Applicable Eurocurrency Margin at any date of determination
thereof which falls during the Negotiation Period shall be based upon the then most recently
available quote as provided by Markit Group Limited (or any successor thereto) of the Credit
Default Swap Spread; provided that the Applicable Eurocurrency Margin shall in no event be less
than a rate per annum equal to 0.75% or greater than a rate per annum equal to 2.50%. If no such
alternative method is agreed upon during the Negotiation Period, the Applicable Eurocurrency Margin
at any date of determination subsequent to the end of the Negotiation Period shall be a rate per
annum equal to 2.50%.
“Applicable Facility Fee Rate” means, on any date, a rate per annum equal to (i)
0.05000.0800% if on such date the Company’s outstanding Long-Term Indebtedness is rated A+
or higher by Standard & Poor’s, A1 or higher by Xxxxx’x, or A+ or higher by Fitch, (ii)
0.06000.1000% if on such date clause (i) is inapplicable and the Company’s outstanding
Long-Term Indebtedness is rated A or higher by Standard & Poor’s, A2 or higher by Xxxxx’x, or A or
higher by Fitch, (iii) 0.07000.1250% if on such date clauses (i) and (ii) are inapplicable
and the Company’s outstanding Long-Term Indebtedness is rated A- or higher by Standard & Poor’s, A3
or higher by Xxxxx’x, or A- or higher by Fitch, (iv) 0.08000.1500% if on such date clauses
(i), (ii) and (iii) are inapplicable and the Company’s outstanding Long-Term Indebtedness is rated
BBB+ or higher by Standard & Poor’s, Baa1 or higher by Xxxxx’x, or BBB+ or higher by Fitch, and (v)
0.10000.2000% if on such date clauses (i), (ii), (iii) and (iv) are inapplicable (including
if such Long-Term Indebtedness is no longer rated by any agency); provided that if the
respective levels of the Company’s outstanding Long-Term Indebtedness credit ratings differ, the
“Applicable Facility Fee Rate” will be determined based on, (a) if two of the ratings are at the
same level and the other rating is one level higher or lower than those same ratings, the level
corresponding the two same ratings shall apply, (b) if two of the ratings are at the same level and
the other rating is two or more levels above the two same ratings, the level corresponding to the
rating that is one level above these same ratings shall apply, (c) if two of the ratings are at the
same level and the other rating is two or more levels below these same ratings, the level
corresponding to the rating that is one level below the two same ratings shall apply and (d) if
each of the three ratings fall within different levels, then the level corresponding to the rating
that is in between the highest and the lowest ratings shall apply.
“Applicable Lending Office” means, with respect to each Lender, such Lender’s Domestic
Lending Office in the case of a Base Rate Advance and such Lender’s Eurocurrency Lending Office in
the case of a Eurocurrency Rate Advance and, in the case of an Uncommitted Advance, the office of
such Lender notified by such Lender to the Administrative Agent and the Company as its Applicable
Lending Office with respect to such Uncommitted Advance.
“Approved Electronic Communications” means each Communication that any Borrower is
obligated to, or otherwise chooses to, provide to the Administrative Agent pursuant to any Loan
Document or the transactions contemplated therein, including any financial statement, financial and
other report, notice, request, certificate and other information material; provided,
however, that, solely with respect to delivery of any such Communication by any Borrower to the
Administrative Agent and without limiting or otherwise affecting either the Administrative Agent’s
right to effect delivery of such Communication by posting such Communication to the Approved
Electronic Platform or the protections afforded hereby to the Administrative Agent in connection
with any such posting, “Approved Electronic Communication” shall exclude (i) any notice of
borrowing, letter of credit request, swing loan request, notice of conversion or continuation, and
any other notice, demand, communication, information, document and other material relating to a
request for a new, or a conversion or continuation of an existing, Borrowing, (ii) any notice
pursuant to Section 2.07(a) and Section 2.07(b) and any other notice relating to the payment of any
principal or other amount due under any Loan Document prior to the scheduled date therefor, (iii)
all notices of any Default or Event of Default and (iv) any notice, demand, communication,
information, document and other material required to be delivered to satisfy any of the conditions
set forth in Article 3 or any other condition to any Borrowing or other extension of credit
hereunder or any condition precedent to the effectiveness of this Agreement.
“Approved Electronic Platform” has the meaning provided in Section 8.02(b).
“Assignment and Acceptance” means an assignment and acceptance accepted by the
Administrative Agent in substantially the form of Exhibit G hereto.
“Attributable Debt” means, in respect of any lease transaction described in Section
5.02(c), as of the date of determination, the lesser of (i) the sale price of the property so
leased multiplied by a fraction the numerator of which is the remaining portion of the base term of
the lease included in such transaction and the denominator of which is the base term of such lease,
and (ii) the total obligation (discounted to present value at the implicit interest factor,
determined in accordance with generally accepted financial practice, included in the rental
payments or, if such interest factor cannot readily be determined, at a rate of interest of 10% per
annum, compounded semi-annually) of the lessee for rental payments (other than amounts required to
be paid on account of property taxes as well as maintenance, repairs, insurance, water rates and
other items which do not constitute payments for property rights) during the remaining portion of
the base term of the lease included in such transaction.
“Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.
“Currency” means either Dollars or an Alternate Currency.
“Current Termination Date” has the meaning provided in Section 2.01(d)(i).
“Declining Lender” has the meaning provided in Section 2.01(d)(ii).
“Default” means an event which would constitute an Event of Default but for the giving
of notice, the lapse of time or both.
“Designated Borrowers” means any Subsidiary of the Company as to which a Designation
Letter has been delivered to the Administrative Agent in accordance with and together with the
other documents required by Section 2.14, and no Termination Letter has been delivered to the
Administrative Agent thereunder.
“Designation Letter” has the meaning provided in Section 2.l4.
“Dollar Equivalent” means, with respect to any amount denominated in an Alternate
Currency on any date, the amount of Dollars that would be required to purchase such amount of such
Alternate Currency at or about 11:00 A.M. (Local Time) on such date, for delivery two Business Days
later, as determined by the Administrative Agent on the basis of the spot selling rate for the
offering of such Alternate Currency for Dollars in the London foreign exchange market,
determinations thereof made in good faith by the Administrative Agent to be conclusive and binding
on the parties in the absence of manifest error.
“Dollars” and “$” mean lawful money of the United States of America.
“Domestic Lending Office” means, with respect to any Lender, the office of such Lender
specified as its “Domestic Lending Office” opposite its name on Schedule I hereto or in the
Assignment and Acceptance, the Additional Commitment Agreement or the accession agreement pursuant
to which it became a Lender, or such other office of such Lender as such Lender may from time to
time specify in writing to the Company and the Administrative Agent.
“EBITDA” means, for any period, the sum (without duplication) for the Company and its
Consolidated Subsidiaries on a consolidated basis of the following: (a) net income for such period
plus (b) to the extent deducted in determining net income for such period, the sum of (i)
depreciation and amortization for such period, (ii) Interest Expense for such period and (iii)
taxes for such period. Notwithstanding the foregoing, in calculating EBITDA for any period
that includes one or more Restructuring Periods, EBITDA shall be increased by an amount equal to
the Applicable Restructuring Charges for any such Restructuring Periods.
As used herein:
“Restructuring Period” means (a) each fiscal quarter of the Company during its
fiscal year ending in 2008 and (b) if the Company reports taking any restructuring charges
during any quarter of its fiscal year ending in 2009 in the Company’s Exchange Act
disclosure documents filed with the Securities and Exchange Commission on Forms
8K, 10K or 10Q (or their equivalents) (the Company’s “SEC Filings”), each such
fiscal quarter of the Company during its fiscal year ending in 2009.
“Applicable Restructuring Charge” means
(a) for the Restructuring Period that is the Company’s first quarter of its fiscal
year ending in 2008, $3,300,000; for the Restructuring Period that is the Company’s second
quarter of its fiscal year ending in 2008, $16,900,000; for the Restructuring Period that is
the Company’s third quarter of its fiscal year ending in 2008, $4,800,000 and for the
Restructuring Period that is the Company’s fourth quarter of its fiscal year ending in 2008,
$60,600,000; and
(b) for any Restructuring Period falling in the Company’s fiscal year ending in
2009, the restructuring charges reported in the Company’s SEC Filings in such fiscal
quarter; provided that the sum of the Applicable Restructuring Charges for all of the
Restructuring Periods in the Company’s fiscal year ending in 2009 will not exceed
$50,000,000 in the aggregate.
“Effective Date” has the meaning provided in Section 3.01.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, or any successors thereto, and the regulations promulgated and the rulings found
thereunder.
“ERISA Controlled Group” means a group consisting of any ERISA Person and all members
of a controlled group of corporations and all trades or businesses (whether or not incorporated)
under common control with such Person that, together with such Person, are treated as a single
employer under regulations promulgated under ERISA.
“ERISA Person” has the meaning provided in Section 3(9) of ERISA for the term
“person.”
“ERISA Plan” means (i) any Plan that (x) is not a Multiemployer Plan and (y) has
Unfunded Benefit Liabilities in excess of $20,000,000 and (ii) any Plan that is a Multiemployer
Plan.
“ESOP” means Xxxxxxx Account Value Plan or any successor plan.
“Euro” has the meaning provided in Section 2.15.
“Eurocurrency Liabilities” has the meaning provided in Regulation D (or any successor
regulation) of the Federal Reserve Board, as in effect from time to time.
“Eurocurrency Lending Office” means, with respect to any Lender, the office of such
Lender specified as its “Eurocurrency Lending Office” opposite its name on Schedule I hereto or in
the Assignment and Acceptance, the Additional Commitment Agreement or the accession agreement
pursuant to which it became a Lender (or, if no such office of such Lender is specified, its
Domestic Lending Office), or such other office of such Lender as such Lender may from time to time
specify in writing to the Company and the Administrative Agent.
“Eurocurrency Rate” means, for any Interest Period:
(a) for each Eurocurrency Rate Advance denominated in Dollars comprising part of the same
Committed Borrowing, an interest rate per annum equal to the offered rate for deposits in such
Currency as quoted on the relevant Screen Page at 11:00 A.M. (London time) two London Banking Days
before the first day of such Interest Period in an amount substantially equal to the Reference
Bank’s Eurocurrency Rate Advance comprising part of such Committed Borrowing to be outstanding
during such Interest Period and for a period equal to such Interest Period;
(b) for each Eurocurrency Rate Advance denominated in Pounds Sterling comprising part of the
same Committed Borrowing, (i) an interest rate per annum equal to the offered rate for deposits in
such Currency as quoted on the relevant Screen Page at 11:00 A.M. (London time) on the first day of
such Interest Period, for a period equal to such Interest Period plus (ii) the MCR Cost,
if any; or
(c) for each Eurocurrency Rate Advance denominated in Euros comprising part of the same
Committed Borrowing, (i) an interest rate per annum equal to the offered rate for deposits in such
Currency as quoted on the relevant Screen Page at 11:00 A.M. (Brussels time) two TARGET Days before
the first day of such Interest Period, for a period equal to such Interest Period plus (ii)
the MCR Cost, if any.
“Eurocurrency Rate Advance” means a Committed Advance that bears interest as provided
in Section 2.05(b).
“Eurocurrency Rate Reserve Percentage” for any Lender for any Eurocurrency Rate
Advances owing to such Lender means the reserve percentage applicable two Business Days before the
first day of the applicable Interest Period under regulations issued from time to time by the
Federal Reserve Board for determining the maximum reserve requirement (including, without
limitation, any emergency, supplemental or other marginal reserve requirement) for such Lender with
respect to liabilities or assets consisting of or including Eurocurrency Liabilities having a term
equal to the applicable Interest Period.
“Events of Default” has the meaning provided in Section 6.01.
“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time,
and the rules and regulations promulgated thereunder from time to time in effect.
“Excluded Representation” means the representation and warranty set forth in Section
4.01(g).
“Existing Credit Agreement” has the meaning provided in the recitals of this
Agreement.
“GAAP” means United States generally accepted accounting principles as in effect from
time to time.
“Hedge Agreements” means interest rate swap, cap or collar agreements, interest rate
future or option contracts, currency swap agreements, currency future or option contracts and other
similar agreements.
“Indebtedness” of any Person means, without duplication, (i) all indebtedness of such
Person for borrowed money or for the deferred purchase price of property or services (other than
trade payables incurred in the ordinary course of business of such Person), (ii) all indebtedness
of such Person evidenced by a note, bond, debenture or similar instrument, (iii) the principal
component of all Capital Lease obligations of such Person, (iv) the face amount of all letters of
credit issued for the account of such Person and, without duplication, all unreimbursed amounts
drawn thereunder, (v) all indebtedness of any other Person secured by any Lien on any property
owned by such Person, whether or not such indebtedness has been assumed, (vi) all Contingent
Obligations of such Person, and (vii) all indebtedness of such Person in respect of Hedge
Agreements.
“Information Memorandum” means the document in the form approved by the Company
concerning the Borrowers and their Subsidiaries which, at the Company’s request and on its behalf,
was prepared in relation to this transaction and distributed by the Lead Arrangers to selected
financial institutions before the date of this Agreement.
“Initial Lenders” has the meaning provided in the first paragraph of this Agreement.
“Interest Coverage Ratio” means, for any period of four consecutive fiscal quarters,
the ratio of (a) EBITDA for such period to (b) Interest Expense for such period.
“Interest Expense” means, for any period, the sum (determined without duplication) of
the aggregate amount of interest reported in respect of such period on the Indebtedness of the
Company and its Consolidated Subsidiaries on a consolidated basis, including, without limitation,
the interest portion of payments under Capital Lease obligations and any capitalized interest
but excluding imputed (non-cash) interest expense in respect of convertible bonds issued by the
Company or any of its Consolidated Subsidiaries as calculated in accordance with the Financial
Accounting Standards Board’s Staff Position Accounting Principles Board Opinion No. 14-1
(“Accounting for Convertible Debt Instruments That May be Settled in Cash upon Conversion
(Including Partial Cash Settlement)”), minus (i) interest income of the Company and its
Consolidated Subsidiaries on a consolidated basis reported in respect of such period and (ii)
interest on deferred compensation reported in respect of such period.
“Interest Period” means, for each Eurocurrency Rate Advance comprising part of the
same Committed Borrowing, each Floating Rate Advance comprising part of the same Uncommitted
Borrowing and each Fixed Rate Advance comprising part of the same Uncommitted Borrowing, the period
commencing on the date of such Advance or the date of the continuation of such Eurocurrency Rate
Advance or the date of the conversion of any Base Rate
“Uncommitted Note” has the meaning provided in Section 2.11.
“Unfunded Benefit Liabilities” means with respect to any Plan at any time, the amount
(if any) by which (i) the present value of all benefit liabilities under such Plan as defined in
Section 4001(a)(16) of ERISA, exceeds (ii) the fair market value of all Plan assets allocable to
such benefits, all determined as of the then most recent valuation date for such Plan (on the basis
of assumptions prescribed by the PBGC for the purpose of Section 4044 of ERISA).
SECTION 1.02. Computation of Time Periods; Terms Generally. In this Agreement in the
computation of periods of time from a specified date to a later specified date, the word “from”
means “from and including” and the words “to” and “until” each mean “to but excluding”. The words
“include”, “includes” and “including” shall be deemed to be followed by the phrase “without
limitation”.
SECTION 1.03. Accounting Terms. All accounting terms not specifically defined herein
shall be construed in accordance with GAAP.
ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES
SECTION 2.01. The Commitment. (a) The Committed Advances. (i) Each
Lender agrees, on the terms and conditions hereinafter set forth to make Committed Advances
to the Company and any Designated Borrower in Dollars or an Alternate Currency from time to
time on any Business Day during the period from the Effective Date until the Termination
Date in an aggregate amount not to exceed at any time outstanding (1) such Lender’s
Commitment minus (2) such Lender’s Pro Rata Share of the aggregate principal amount
of all Uncommitted Advances then outstanding; provided that (A) at no time shall the
aggregate outstanding principal amount of all Advances exceed the total amount of the
Commitments at such time; and (B) at no time shall the Dollar Equivalent of the aggregate
outstanding principal amount of all Committed Advances denominated in an Alternate Currency
to the Borrowers exceed the Foreign Currency Sublimit.
(ii) Within the limits of each Lender’s Commitment and subject to the limitation set
forth in Section 2.07(c), each Borrower may borrow, repay, prepay (as provided in Section
2.07) and reborrow such amount or any portion thereof.
(f) Failure to Make Advances. The failure of any Lender to make the Committed
Advance to be made by it as part of any Committed Borrowing shall not relieve any other Lender of
its obligation, if any, hereunder to make its Committed Advance on the date of such Committed
Borrowing, but no Lender shall be responsible for the failure of any other Lender to make the
Committed Advance to be made by such other Lender on the date of any Committed Borrowing.
SECTION 2.03. Fees. (a) Facility Fee. The Company agrees to pay to the
Administrative Agent for the account of each Lender a facility fee in Dollars on the aggregate
amount of such Lender’s Commitment (whether or not utilized and, after the Termination Date (or,
for any Declining Lender, after the Current Termination Date applicable to such Lender), on the
aggregate outstanding principal amount of the Advances of such Lender, if any) from the date hereof
in the case of each Lender and, in the case of each Person which becomes a Lender pursuant to
Section 8.07, from the effective date specified in the Assignment and Acceptance pursuant to which
it became a Lender and, in the case of a Person becoming a Lender pursuant to Section 2.01(c) or
2.01(d), from the effective date specified in the accession agreement or Additional Commitment
Agreement, as applicable, pursuant to which it became a Lender, until the Termination Date at the
Applicable Facility Fee Rate, payable quarterly in arrears on the last day of each March, June,
September and December during the term hereof and on the Termination Date. All computations of the
facility fee shall be based on a year of 360 days.
(b) Administrative Agent’s Fees. The Company shall pay to the Administrative Agent
in Dollars for its own account such fees as may from time to time be agreed between the Company and
the Administrative Agent.
SECTION 2.04. Continuation and Conversion. (a) General. Subject to the other provisions
hereof, each Borrower shall have the option (i) to convert all or any part of an outstanding
Committed Borrowing consisting of Base Rate Advances to a Committed Borrowing consisting of
Eurocurrency Rate Advances, (ii) to convert all or any part of an outstanding Committed Borrowing
in Dollars consisting of Eurocurrency Rate Advances to a Committed Borrowing consisting of Base
Rate Advances, or (iii) to continue all or any part of an outstanding Committed Borrowing
consisting of Eurocurrency Rate Advances as a Committed Borrowing consisting of Eurocurrency Rate
Advances for an additional Interest Period; provided that no Committed Borrowing consisting
of Eurocurrency Rate Advances shall be so converted other than as contemplated by Section 2.02(c)
or continued, until the expiration of the Interest Period applicable thereto.
(b) Notice of Conversion or Continuation. In order to elect to convert or continue a
Committed Borrowing hereunder, the Company (on its own behalf or on behalf of any Designated
Borrower) shall deliver an irrevocable notice thereof (a “Notice of Conversion or
Continuation”) to the Administrative Agent by telecopier or by telephone confirmed immediately
in writing, no later than (i) 11:00 A.M., (New York City time) on the proposed conversion date in
the case of a conversion to Base Rate Advances and (ii) no earlier than 9:00 A.M. (New York City
time) and no later than 4:00 P.M. (New York City time) on the third Business Day in advance of the
proposed conversion or continuation date in the case of a conversion to, or a continuation of,
Eurocurrency Rate Advances, substantially in the form of Exhibit B hereto. A Notice of Conversion
or Continuation shall specify (w) the requested conversion or continuation date (which shall be a
Business Day), (x) the amount and Type of the Advances to be converted or continued, (y) whether a
conversion or continuation is requested, and (z) in the case of a
conversion to, or a continuation of, Eurocurrency Rate Advances, the requested Interest Period.
The relevant Eurocurrency Rate for such Interest Period in the case of a conversion to, or a
continuation of, Eurocurrency Rate Advances shall be determined in the manner provided in
Section
2.02(a) as if such conversion or continuation is instead new Eurocurrency Rate Advances in such
amount, on such date and for such Interest Period. If the Company fails to give a Notice of
Conversion or Continuation with respect to an outstanding Committed Borrowing consisting of
Eurocurrency Rate Advances in Dollars as provided in clause (ii) above, the Company shall be deemed
to have converted such Eurocurrency Rate Advances into Base Rate Advances in accordance with this
Section 2.04 if such Advances are outstanding after the last day of the Interest Period with
respect thereto. If the Company fails to give a Notice of Conversion or Continuation with respect
to an outstanding Committed Borrowing consisting of Eurocurrency Rate Advances in an Alternate
Currency as provided in clause (ii) above, the Company shall be deemed to have converted such
Eurocurrency Rate Advances into a Eurocurrency Rate Advance with an Interest Period of one (1)
month in accordance with this Section 2.04 if such Advances are outstanding after the last day of
the Interest Period with respect thereto.
SECTION 2.05. Interest on Advances. Each Borrower shall pay interest on the unpaid
principal amount of each Advance owing to each Lender from the date the proceeds of such Advance
are made available to such Borrower until such principal amount shall be paid in full, at the
following rates per annum:
(a) Base Rate Advances. If such Advance is a Base Rate Advance, a rate per
annum equal to the Base Rate in effect from time to time, payable in arrears quarterly on
the last Business Day of each fiscal quarter during the period such Base Rate Advance
remains outstanding and on the date such Base Rate Advance shall be paid in full;
(b) Eurocurrency Rate Advances. If such Advance is a Eurocurrency Rate
Advance, a rate per annum equal at all times during the Interest Period for such Advance to
the sum of the Eurocurrency Rate for such Interest Period plus the Applicable Eurocurrency
Margin for such AdvanceInterest Period, payable in arrears on the last day of such
Interest Period and, if such Interest Period has a duration of more than three months, on
each day which occurs during such Interest Period every three months from the first day of
such Interest Period;
(c) Floating Rate Advances. If such Advance is a Floating Rate Advance, a
rate per annum equal at all times during the Interest Period for such Advance to the
Floating Rate for such Interest Period quoted by such Lender in accordance with Section
2.13, payable in arrears on the last Business Day of such Interest Period and, if such
Interest Period has a duration of more than three months, on each day which occurs during
such Interest Period every three months from the first day of such Interest Period;
(c) Payment of Taxes. The Company shall pay or cause to be paid, and shall cause
each of its Subsidiaries to pay or cause to be paid, when due, all taxes, charges and assessments
and all other lawful claims required to be paid by the Company or such Subsidiaries, except (x) as
contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves
have been established with respect thereto in accordance with GAAP and (y) where such nonpayment
could not reasonably be expected to result in a Material Adverse Effect.
(d) Preservation of Corporate Existence. Except as otherwise permitted by this
Agreement, the Company shall, and shall cause each of its Subsidiaries to, do all things necessary
to preserve, renew and keep in full force and effect its corporate existence and the licenses,
permits, rights and franchises necessary to the proper conduct of its business, except
where the
failure to do so could not reasonably be expected to have a Material Adverse Effect. Neither the
Company nor any of its Subsidiaries will engage in any business if, as a result, the general nature
of the business, taken on a consolidated basis, which would then be engaged in by the Company and
its Subsidiaries would be substantially changed from the general nature of the business engaged in
by the Company and its Subsidiaries on the date of this Agreement.
(e) Maintenance of Books and Records. The Company will maintain financial records in
accordance with GAAP, consistently applied. The representatives of the Administrative Agent or any
of the Lenders shall have the right to visit and inspect any of the properties of the Company and
of any of its Subsidiaries, to examine their books of account and records and take notes and make
transcripts therefrom, and to discuss their affairs, finances and accounts with, and be advised as
to the same by, their officers upon reasonable prior notice at such reasonable times and intervals
as may be requested (subject to the standard policies of the Company and its Subsidiaries as to
access, safety and, without prejudice to the reasonable requirements of lending institutions and
their regulatory supervisors, confidentiality).
(f) Interest Coverage Ratio. The Company shall maintain, for each period of four
consecutive fiscal quarters of the Company, an Interest Coverage Ratio of not less than
5.003.50 to 1.00.
SECTION 5.02. Negative Covenants. So long as any Advance or any other amount owing
hereunder shall remain unpaid or any Lender shall have any Commitment hereunder:
(a) No Liens. The Company shall not, and shall not permit any of its Subsidiaries
to, create, incur, assume or suffer to exist, directly or indirectly, any Lien on any Principal
Property now owned or hereafter acquired (unless the Company secures the Advances made hereunder
equally and ratably with such Lien), other than:
(i) Liens existing and disclosed to the Lenders in writing prior to the date hereof;
(ii) Liens for taxes not yet due or which are being contested in good faith by
appropriate proceedings diligently conducted and with respect to which adequate reserves are
being maintained in accordance with GAAP;
(iii) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics,
materialmen and other Liens imposed by law created in the ordinary course
