$100,000,000 REVOLVING CREDIT FACILITY
CREDIT AGREEMENT
by and among
XXXXXXXXX XXXXX INCORPORATED,
XXXXXXXXX DOWNS MANAGEMENT COMPANY,
XXXXXXXXX XXXXX INVESTMENT COMPANY,
RACING CORPORATION OF AMERICA
AND ELLIS PARK RACE COURSE, INC.
(collectively, the "Borrowers")
and
THE BANKS PARTY HERETO
and
PNC BANK, NATIONAL ASSOCIATION, As Agent
Dated as of September 16, 1998
TABLE OF CONTENTS
Page
1. CERTAIN DEFINITIONS........................................................1
1.1 Certain Definitions...................................................1
1.2 Construction.........................................................17
1.2.1 Number; Inclusion.............................................17
1.2.2 Determination.................................................17
1.2.3 Agent's Discretion and Consent................................17
1.2.4 Documents Taken as a Whole....................................17
1.2.5 Headings......................................................17
1.2.6 Implied References to this Agreement..........................17
1.2.7 Persons.......................................................17
1.2.8 Modifications to Documents....................................18
1.2.9 From, To and Through..........................................18
1.2.10 Shall; Will...................................................18
1.2.11 Consolidated Financial Information............................18
1.3 Accounting Principles................................................18
2. REVOLVING CREDIT FACILITY.................................................19
2.1 Revolving Credit Commitments.........................................19
2.2 Nature of Banks' Obligations with Respect to Revolving Credit Loans..19
2.3 Non Usage Fees.......................................................19
2.4 Closing Fee..........................................................20
2.5 Revolving Credit Loan Requests.......................................20
2.6 Making Revolving Credit Loans........................................21
2.7 Revolving Credit Notes...............................................21
2.8 Use of Proceeds......................................................21
2.9 Letter of Credit Subfacility.........................................22
2.9.1 Issuance of Letters of Credit.................................22
2.9.2 Letter of Credit Fees.........................................22
2.9.3 Disbursements, Reimbursement..................................22
2.9.4 Repayment of Participation Advances...........................23
2.9.5 Documentation.................................................24
2.9.6 Determinations to Honor Drawing Requests......................24
2.9.7 Nature of Participation and Reimbursement Obligations.........24
2.9.8 Indemnity.....................................................25
2.9.9 Liability for Acts and Omissions..............................26
2.10 Extension by Banks of the Expiration Date............................26
2.10.1 Requests; Approval by All Banks...............................26
2.10.2 Approval by Required Banks....................................27
2.11 Voluntary Reductions.................................................27
3. SWING LINE LOANS..........................................................28
3.1 Swing Line Credit Facility...........................................28
3.1.1 Interest......................................................28
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3.1.2 Principal.....................................................28
3.1.3 Swing Line Note...............................................29
3.1.4 Conditions for Swing Line Loans...............................29
3.1.5. General Provisions Regarding Payments of Swing Line Loans.....29
3.1.6 Limitation....................................................30
3.2 Use of Proceeds......................................................30
4. INTEREST RATES............................................................30
4.1 Interest Rate Options................................................30
4.1.1 Revolving Credit Interest Rate Options........................31
4.2 Swing Line Loan Interest Rate........................................31
4.3 Interest Periods.....................................................32
4.3.1 Amount of Borrowing Tranche...................................32
4.3.2 Termination Before Expiration Date............................32
4.3.3 Renewals......................................................32
4.4 Interest After Default...............................................32
4.4.1 Letter of Credit Fees, Interest Rate..........................32
4.4.2 Other Obligations.............................................32
4.4.3 Acknowledgment................................................33
4.5 Euro-Rate Unascertainable; Illegality; Increased Costs; Deposits Not
Available............................................................33
4.5.1 Unascertainable...............................................33
4.5.2 Illegality; Increased Costs; Deposits Not Available...........33
4.5.3 Agent's and Banks' Rights.....................................34
4.6 Selection of Interest Rate Options...................................34
5. PAYMENTS..................................................................34
5.1 Payments.............................................................34
5.2 Pro Rata Treatment of Banks..........................................35
5.3 Interest Payment Dates...............................................35
5.4 Voluntary Prepayments................................................36
5.4.1 Right to Prepay...............................................36
5.4.2 Replacement of a Bank.........................................37
5.4.3 Change of Lending Office......................................37
5.5 Required Prepayments.................................................38
5.5.1 Sale of Assets................................................38
5.5.2 Application Among Interest Rate Options.......................38
5.6 Additional Compensation in Certain Circumstances.....................38
5.6.1 Increased Costs or Reduced Return Resulting from Taxes,
Reserves, Capital Adequacy Requirements, Expenses, Etc...............38
5.6.2 Indemnity.....................................................39
6. REPRESENTATIONS AND WARRANTIES............................................40
6.1 Representations and Warranties.......................................40
6.1.1 Organization and Qualification................................40
6.1.2 Capitalization and Ownership..................................40
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6.1.3 Subsidiaries..................................................40
6.1.4 Power and Authority...........................................41
6.1.5 Validity and Binding Effect...................................41
6.1.6 No Conflict...................................................41
6.1.7 Litigation....................................................41
6.1.8 Title to Properties...........................................42
6.1.9 Financial Statements..........................................42
6.1.10 Use of Proceeds; Margin Stock; Section 20 Subsidiaries........42
6.1.11 Taxes.........................................................43
6.1.12 Consents and Approvals........................................43
6.1.13 No Event of Default; Compliance with Instruments..............44
6.1.14 Patents, Trademarks, Copyrights, Licenses, Etc................44
6.1.15 Insurance.....................................................44
6.1.16 Compliance with Laws..........................................44
6.1.17 Material Contracts; Burdensome Restrictions...................45
6.1.18 Investment Companies; Regulated Entities......................45
6.1.19 Plans and Benefit Arrangements................................45
6.1.20 Employment Matters............................................46
6.1.21 Environmental Matters.........................................47
6.1.22 Senior Debt Status............................................48
6.1.23 Employee Benefit Plans........................................48
6.1.24 Full Disclosure...............................................48
6.1.25 Year 2000.....................................................49
6.2 Updates to Schedules.................................................49
7. CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT...................49
7.1 First Loans and Letters of Credit....................................49
7.1.1 Officer's Certificate.........................................49
7.1.2 Secretary's Certificate.......................................50
7.1.3 Delivery of Loan Documents....................................50
7.1.4 Opinion of Counsel............................................50
7.1.5 Legal Details.................................................51
7.1.6 Payment of Fees...............................................51
7.1.7 Consents......................................................51
7.1.8 Officer's Certificate Regarding MACs..........................51
7.1.9 No Violation of Laws..........................................51
7.1.10 No Actions or Proceedings.....................................51
7.1.11 Insurance Policies; Certificates of Insurance; Endorsements...52
7.1.12 Administrative Questionnaire..................................52
7.2 Each Additional Loan or Letter of Credit.............................52
8. COVENANTS.................................................................52
8.1 Affirmative Covenants................................................52
8.1.1 Preservation of Existence, Etc................................53
8.1.2 Payment of Liabilities, Including Taxes, Etc..................53
8.1.3 Maintenance of Insurance......................................53
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8.1.4 Maintenance of Properties and Leases..........................53
8.1.5 Maintenance of Patents, Trademarks, Etc.......................54
8.1.6 Visitation Rights.............................................54
8.1.7 Keeping of Records and Books of Account.......................54
8.1.8 Plans and Benefit Arrangements................................54
8.1.9 Compliance with Laws..........................................55
8.1.10 Use of Proceeds...............................................55
8.1.11 Subordination of Intercompany Loans...........................55
8.2 Negative Covenants...................................................55
8.2.1 Indebtedness..................................................55
8.2.2 No Liens; Negative Pledge.....................................56
8.2.3 Guaranties....................................................56
8.2.4 Loans and Investments.........................................56
8.2.5 Liquidations, Mergers, Consolidations, Acquisitions...........57
8.2.6 Dispositions of Assets or Subsidiaries........................58
8.2.7 Affiliate Transactions........................................58
8.2.8 Subsidiaries, Partnerships and Joint Ventures.................59
8.2.9 No Material Change in Business................................59
8.2.10 Plans and Benefit Arrangements................................59
8.2.11 Fiscal Year...................................................60
8.2.12 Issuance of Stock.............................................60
8.2.13 Changes in Organizational Documents...........................60
8.2.14 Maximum Ratio of Funded Debt to EBITDA........................61
8.2.15 Interest Coverage Ratio.......................................61
8.2.16 Minimum Tangible Net Worth....................................61
8.2.17 Margin Stock..................................................61
8.2.18 Other Agreements..............................................61
8.3 Reporting Requirements...............................................61
8.3.1 Quarterly Financial Statements................................62
8.3.2 Annual Financial Statements...................................62
8.3.3 Certificate of the Borrower...................................62
8.3.4 Notice of Default.............................................63
8.3.5 Notice of Litigation..........................................63
8.3.6 Certain Events................................................63
8.3.7 Other Reports and Information.................................63
8.3.8 Notices Regarding Plans and Benefit Arrangements..............64
9. DEFAULT...................................................................65
9.1 Events of Default....................................................65
9.1.1 Payments Under Loan Documents.................................65
9.1.2 Breach of Warranty............................................65
9.1.3 Breach of Negative Covenants or Visitation Rights.............66
9.1.4 Breach of Other Covenants.....................................66
9.1.5 Defaults in Other Agreements or Indebtedness..................66
9.1.6 Other Material Obligations....................................66
9.1.7 Final Judgments or Orders.....................................66
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9.1.8 Loan Document Unenforceable...................................66
9.1.9 Uninsured Losses; Proceedings Against Assets..................67
9.1.10 Notice of Lien or Assessment..................................67
9.1.11 Insolvency....................................................67
9.1.12 Events Relating to Plans and Benefit Arrangements.............67
9.1.13 Cessation of Business.........................................68
9.1.14 Change of Control.............................................68
9.1.15 Involuntary Proceedings.......................................68
9.1.16 Voluntary Proceedings.........................................68
9.2 Consequences of Event of Default.....................................69
9.2.1 Events of Default Other Than Bankruptcy, Insolvency or
Reorganization Proceedings..........................................69
9.2.2 Bankruptcy, Insolvency or Reorganization Proceedings..........69
9.2.3 Set-off.......................................................69
9.2.4 Suits, Actions, Proceedings...................................70
9.2.5 Application of Proceeds.......................................70
9.2.6 Other Rights and Remedies.....................................71
9.3 Reasonable Notice....................................................71
10. THE AGENT................................................................71
10.1 Appointment..........................................................71
10.2 Delegation of Duties.................................................71
10.3 Nature of Duties; Independent Credit Investigation...................71
10.4 Actions in Discretion of Agent; Instructions From the Banks..........72
10.5 Reimbursement and Indemnification of Agent by the Borrowers..........72
10.6 Exculpatory Provisions; Limitation of Liability......................73
10.7 Reimbursement and Indemnification of Agent by Banks..................74
10.8 Reliance by Agent....................................................74
10.9 Notice of Default....................................................74
10.10 Notices..............................................................74
10.11 Banks in Their Individual Capacities.................................75
10.12 Holders of Notes.....................................................75
10.13 Equalization of Banks................................................75
10.14 Successor Agent......................................................76
10.15 Agent's Fee..........................................................76
10.16 Availability of Funds................................................76
10.17 Calculations.........................................................77
10.18 Beneficiaries........................................................77
11. MISCELLANEOUS............................................................77
11.1 Modifications, Amendments or Waivers.................................77
11.1.1 Increase of Commitment; Extension or Expiration Date..........77
11.1.2 Extension of Payment; Reduction of Principal Interest or Fees;
Modification of Terms of Payment.....................................78
11.1.3 Miscellaneous.................................................78
11.2 No Implied Waivers; Cumulative Remedies; Writing Required............78
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11.3 Reimbursement and Indemnification of Banks by the Borrowers; Taxes...78
11.4 Holidays.............................................................79
11.5 Funding by Branch, Subsidiary or Affiliate...........................79
11.5.1 Notional Funding..............................................79
11.5.2 Actual Funding................................................80
11.6 Notices..............................................................80
11.7 Severability.........................................................81
11.8 Governing Law........................................................81
11.9 No Prior Understanding...............................................81
11.10 Duration; Survival...................................................81
11.11 Successors and Assigns...............................................81
11.12 Confidentiality......................................................83
11.12.1 General................................................83
11.12.2 Sharing Information With Affiliates of the Banks.......83
11.13 Counterparts.........................................................84
11.14 Agent's or Bank's Consent............................................84
11.15 Exceptions...........................................................84
11.16 CONSENT TO FORUM; WAIVER OF JURY TRIAL...............................84
11.17 Tax Withholding Clause...............................................85
11.18 Joinder of New Subsidiaries..........................................86
11.19 No Joint Venture.....................................................86
11.20 Indemnification......................................................86
11.21 Survival of Covenants................................................87
11.22 No Course of Dealing.................................................87
11.23 Time of the Essence..................................................87
11.24 Further Assurances...................................................87
11.25 Incorporation by Reference...........................................87
11.26 Entire Agreement.....................................................87
11.27 Joint and Several Liability; Certain Limitations.....................87
11.29 Acknowledgment.......................................................88
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LIST OF SCHEDULES AND EXHIBITS
SCHEDULES
SCHEDULE 1.1(B) - COMMITMENTS OF BANKS AND ADDRESSES FOR
NOTICES
SCHEDULE 1.1(P) - PERMITTED LIENS
SCHEDULE 6.1.1 - QUALIFICATIONS TO DO BUSINESS
SCHEDULE 6.1.2 - CAPITALIZATION
SCHEDULE 6.1.3 - SUBSIDIARIES
SCHEDULE 6.1.8 - OWNED AND LEASED REAL PROPERTY
SCHEDULE 6.1.11 - AGREEMENTS WITH RESPECT TO TAXES
SCHEDULE 6.1.12 - CONSENTS AND APPROVALS
SCHEDULE 6.1.14 - PATENTS, TRADEMARKS, COPYRIGHTS, LICENSES, ETC.
SCHEDULE 6.1.15 - INSURANCE POLICIES
SCHEDULE 6.1.17 - MATERIAL CONTRACTS
SCHEDULE 6.1.19 - EMPLOYEE BENEFIT PLAN DISCLOSURES
SCHEDULE 6.1.21 - ENVIRONMENTAL DISCLOSURES
SCHEDULE 8.2.1 - PERMITTED INDEBTEDNESS
EXHIBITS
EXHIBIT 1.1(A) - ASSIGNMENT AND ASSUMPTION AGREEMENT
EXHIBIT 1.1(G)(1) - JOINDER AGREEMENT
EXHIBIT 1.1(I)(1) - INDEMNITY
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EXHIBIT 1.1(I)(2) - INTERCOMPANY SUBORDINATION AGREEMENT
EXHIBIT 1.1(P)(iii) - PERMITTED CASH INVESTMENTS
EXHIBIT 1.1(P)(iv) - PERMITTED PARTNERSHIP AND LLC INVESTMENTS
EXHIBIT 1.1(R) - REVOLVING CREDIT NOTES
EXHIBIT 1.1(S) - SWING LINE NOTE
EXHIBIT 2.5 - LOAN REQUEST
EXHIBIT 3.1.4 - REQUEST FOR SWING LINE LOAN
EXHIBIT 7.1.4 - OPINION OF COUNSEL
EXHIBIT 8.2.5 - ACQUISITION COMPLIANCE CERTIFICATE
EXHIBIT 8.3.3 - QUARTERLY COMPLIANCE CERTIFICATE
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CREDIT AGREEMENT
This is a Credit Agreement dated as of September 16, 1998 among
XXXXXXXXX XXXXX INCORPORATED, a Kentucky corporation, XXXXXXXXX DOWNS MANAGEMENT
COMPANY, a Kentucky corporation, XXXXXXXXX XXXXX INVESTMENT COMPANY, a Kentucky
corporation, RACING CORPORATION OF AMERICA, a Delaware corporation and ELLIS
PARK RACE COURSE, INC., a Kentucky corporation (collectively the "Borrowers and
each individually a Borrower"), the BANKS (as hereinafter defined), and PNC
BANK, NATIONAL ASSOCIATION, in its capacity as agent for the Banks under this
Agreement (hereinafter referred to in such capacity as the "Agent").
WITNESSETH:
WHEREAS, the Borrowers have requested the Banks to provide a revolving
credit facility to the Borrowers in an aggregate principal amount not to exceed
$100,000,000 including a swing line credit facility in an aggregate principal
amount not to exceed $10,000,000 which is a part of, and does not increase, that
revolving credit facility; and
WHEREAS, the revolving credit shall be used for repayment of existing
indebtedness, general corporate and working capital purposes as well as the
acquisition of property, equipment and other entities; and
WHEREAS, the Banks are willing to provide such credit upon the terms and
conditions hereinafter set forth;
NOW, THEREFORE, the parties hereto, in consideration of their mutual
covenants and agreements hereinafter set forth and intending to be legally bound
hereby, covenant and agree as follows:
1. CERTAIN DEFINITIONS
1.1 Certain Definitions.
In addition to words and terms defined elsewhere in this Agreement, the
following words and terms shall have the following meanings, respectively,
unless the context hereof clearly requires otherwise:
Affiliate as to any Person shall mean any other Person (i) which
directly or indirectly controls, is controlled by, or is under common control
with such Person, (ii) which beneficially owns or holds 15% or more of any class
of the voting or other equity interests of such Person, or (iii) 15% or more of
any class of voting interests or other equity interests of which is beneficially
owned or held, directly or indirectly, by such Person. Control, as used in this
definition, shall mean 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 ownership of voting securities, by contract or otherwise, including
the power to elect a majority of the directors or trustees of a corporation or
trust, as the case may be.
Agent shall mean PNC Bank, National Association, and its
successors and assigns.
1
Agent's Fee shall have the meaning assigned to that term in
Section 10.15.
Agent's Letter shall have the meaning assigned to that term in
Section 10.15.
Agreement shall mean this Credit Agreement, as it may be
supplemented or amended from time to time, including all schedules and exhibits.
Annual Statements shall have the meaning assigned to that term in
Section 6.1.9(i).
Assignee Bank shall have the meaning assigned to such term in
Section 2.10.2.
Assignment and Assumption Agreement shall mean an Assignment and
Assumption Agreement by and among a Purchasing Bank, a Transferor Bank and the
Agent, as Agent and on behalf of the remaining Banks, substantially in the form
of Exhibit 1.1(A).
Authorized Officer shall mean those individuals, designated by
written notice to the Agent from the Borrowers, authorized to execute notices,
reports and other documents on behalf of the Loan Parties required hereunder.
The Borrowers may amend such list of individuals from time to time by giving
written notice of such amendment to the Agent.
Bank to be Terminated shall have the meaning assigned to that
term in Section 2.10.2.
Banks shall mean the financial institutions named on Schedule
1.1(B) and their respective successors and assigns as permitted hereunder, each
of which is referred to herein as a Bank.
Base Net Worth shall mean Forty Five Million One Hundred Eighty
Eight Thousand Dollars ($45,188,000.00).
Base Rate shall mean the higher of (i) the interest rate per
annum most recently designated and announced publicly from time to time by the
Agent at its Principal Office as its then prime rate, which rate may not be the
lowest rate then being charged commercial borrowers by the Agent, or (ii) the
Federal Funds Effective Rate plus 1/2 %.
Base Rate Option shall mean the Revolving Credit Base Rate
Option.
Basis Point shall mean 0.01%.
Benefit Arrangement shall mean at any time an "employee benefit
plan," within the meaning of Section 3(3) of ERISA, which is neither a Plan nor
a Multiemployer Plan and which is maintained, sponsored or otherwise contributed
to by any member of the ERISA Group.
Borrowers shall mean collectively, Xxxxxxxxx Xxxxx Incorporated,
a corporation organized and existing under the laws of the Commonwealth of
Kentucky, Xxxxxxxxx Downs Management Company, a corporation organized and
existing under the laws of the Commonwealth of Kentucky, Xxxxxxxxx Xxxxx
Investment Company, a corporation organized and existing under the laws of the
Commonwealth of
2
Kentucky, Racing Corporation of America, a corporation organized and existing
under the laws of the State of Delaware, and Ellis Park Race Course, Inc., a
corporation organized and existing under the laws of the Commonwealth of
Kentucky, and any other Person which joins this Agreement as a Borrower after
the date hereof pursuant to Section 11.18.
Borrowing Date shall mean, with respect to any Loan, the date for
the making thereof or the renewal or conversion thereof at or to the same or a
different Interest Rate Option, which shall be a Business Day.
Borrowing Tranche shall mean specified portions of Loans
outstanding as follows: (i) any Loans to which a Euro-Rate Option applies which
become subject to the same Interest Rate Option under the same Loan Request by
the Borrowers and which have the same Interest Period shall constitute one
Borrowing Tranche, and (ii) all Loans to which a Base Rate Option applies shall
constitute one Borrowing Tranche. There shall be no more than seven Borrowing
Tranches outstanding at any one time.
Business Day shall mean any day other than a Saturday or Sunday
or a legal holiday on which commercial banks are authorized or required to be
closed for business in Louisville, Kentucky and, if the applicable Business Day
relates to any Loan to which the Euro-Rate Option applies, such day must also be
a day on which dealings are carried on in the London interbank market.
Closing Date shall mean the Business Day on which the first Loan
shall be made, which shall be September 16, 1998 or, if all the conditions
specified in Section 7 have not been satisfied or waived by such date, not later
than September 16, 1998, as designated by the Borrowers by at least 3 Business
Days' advance notice to the Agent at its Principal Office, or such other date as
the parties agree. The closing shall take place at 10:30 a.m., Eastern Standard
Time, on the Closing Date at the offices of Xxxxx, Xxxx and Xxxxxxx, PLLC, in
Louisville, Kentucky, or at such other time and place as the parties agree.
Commercial Letter of Credit shall mean any Letter of Credit which
is a commercial letter of credit issued in respect of the purchase of goods or
services by one or more of the Loan Parties in the ordinary course of their
business.
Commitment shall mean as to any Bank the amount of its Revolving
Credit Commitment and Commitments shall mean the aggregate of the Revolving
Credit Commitments of all of the Banks.
Commitment Period shall mean the period beginning on the date
hereof and extending to the Expiration Date.
Consideration shall mean with respect to any Permitted
Acquisition, the aggregate of (i) the cash paid by any of the Loan Parties,
directly or indirectly, to the seller in connection therewith, (ii) the
Indebtedness incurred or assumed by any of the Loan Parties, whether in favor of
the seller or otherwise and whether fixed or contingent, (iii) any Guaranty
given or incurred by any Loan Party in connection therewith (reduced by any
Indebtedness secured by such Guaranty already included in (ii) above), and (iv)
any other consideration given or obligation incurred by any of the Loan Parties
in connection therewith.
Consolidated Dividends for any Period of determination shall mean
the aggregate Dividends
3
of the Borrowers for the period determined, except that any Dividends paid by
one Loan Party to another Loan Party shall be excluded.
Consolidated EBIT for any Period shall mean the consolidated EBIT
of all of the Borrowers for that period, consolidated in accordance with GAAP.
Consolidated EBITDA for any Period shall mean the consolidated
EBITDA of all of the Borrowers for that period, consolidated in accordance with
GAAP.
Consolidated Funded Indebtedness as of an date of determination
shall mean the consolidated Indebtedness of the Borrowers, consolidated in
accordance with GAAP, except that obligations of the Borrowers not exceeding
$3,000,000 under outstanding pari-mutuel tickets that are payable with respect
to races run not more than one year prior to the date of determination (the
"Excluded Amount") shall not be included in Consolidated Funded Debt. The
balance of all obligations of all or any of the Borrowers with respect
pari-mutuel tickets other than the Excluded Amount shall be included in
Consolidated Funded Debt.
Consolidated Interest Expense for any Period of determination
shall mean the interest expense of the Borrowers on a consolidated basis for
such period determined and consolidated in accordance with GAAP.
Consolidated Rent Expense shall mean as of any date of
determination the total expenses of the Borrowers on a consolidated basis as of
such date, determined and consolidated in accordance with GAAP, for rent and/or
other amounts under all real and personal property operating leases.
Consolidated Tangible Net Worth shall mean as of any date of
determination total stockholders' equity less intangible assets of the Borrowers
on a consolidated basis as of such date determined and consolidated in
accordance with GAAP.
Controlling Interest shall mean an ownership interest in a Person
equal to more than 50% of the ownership interest in such Person in conjunction
with (i) the existence of a management agreement or other management arrangement
between such Person and the Borrower which gives the Borrower control over the
management or operations of such person and (ii) the Borrower's ability to
distribute funds from the Person to the Borrower or other Borrowers at its sole
discretion.
Default Rate shall mean an annual rate equal to two percent (2%)
plus the Base Rate in effect from time to time.
Dividend shall mean any amount declared or paid, or set apart by
any Borrower for the purpose of payment of, (a) any dividend or other
distribution on or in respect of any shares of any class of any Borrower's
capital stock, or (b) the purchase, retirement, reacquisition or redemption of
any shares of any class of any Borrower's capital stock, or (c) any distribution
by way of reduction of capital, or (d) any other distribution on or in respect
of any shares of any class of any Borrower's capital stock.
Dollar, Dollars, U.S. Dollars and the symbol $ shall mean lawful
money of the United States of America.
4
Drawing Date shall have the meaning assigned to that term in
Section 2.9.3.2.
EBIT for any Person for any Period of determination shall mean
(i) that Person's net income before tax plus that Person's interest expense,
minus (ii) that Person's non-cash credits to net income, in each case for such
period determined in accordance with GAAP.
EBITDA for any Person for any Period of determination shall mean
(i) the sum of that Person's net income, depreciation, amortization, other
non-cash charges to net income, interest expense and income tax expense, minus
(ii) that Person's non-cash credits to net income, in each case for such period
determined in accordance with GAAP.
Environmental Complaint shall mean any written complaint setting
forth a cause of action for personal or property damage or natural resource
damage or equitable relief, order, notice of violation, citation, request for
information issued pursuant to any Environmental Laws by an Official Body,
subpoena or other written notice of any type relating to, arising out of, or
issued pursuant to, any of the Environmental Laws or any Environmental
Conditions, as the case may be.
Environmental Conditions shall mean any conditions of the
environment, including the workplace, the ocean, natural resources (including
flora or fauna), soil, surface water, groundwater, any actual or potential
drinking water supply sources, substrata or the ambient air, relating to or
arising out of, or caused by, the use, handling, storage, treatment, recycling,
generation, transportation, release, spilling, leaking, pumping, emptying,
discharging, injecting, escaping, leaching, disposal, dumping, threatened
release or other management or mismanagement of Regulated Substances resulting
from the use of, or operations on, any Property.
Environmental Laws shall mean all federal, state, local and
foreign Laws and regulations, including permits, licenses, authorizations,
bonds, orders, judgments, and consent decrees issued, or entered into, pursuant
thereto, relating to pollution or protection of human health or the environment
or employee safety in the workplace.
ERISA shall mean the Employee Retirement Income Security Act of
1974, as the same may be amended or supplemented from time to time, and any
successor statute of similar import, and the rules and regulations thereunder,
as from time to time in effect.
ERISA Group shall mean, at any time, the Borrowers and all
members of a controlled group of corporations and all trades or businesses
(whether or not incorporated) under common control and all other entities which,
together with the Borrowers, are treated as a single employer under Section 414
of the Internal Revenue Code.
5
Euro-Rate shall mean, with respect to the Loans comprising any
Borrowing Tranche to which the Euro-Rate Option applies for any Interest Period,
the interest rate per annum determined by the Agent by dividing (the resulting
quotient rounded upwards, if necessary, to the nearest 1/100th of 1% per annum)
(i) the rate of interest determined by the Agent in accordance with its usual
procedures (which determination shall be conclusive absent manifest error) to be
the average of the London interbank offered rates for U.S.
Dollars quoted by the British Bankers' Association as set forth on Dow Xxxxx
Markets Service (formerly known as Telerate) (or appropriate successor or, if
the British Bankers' Association or its successor ceases to provide such quotes,
a comparable replacement determined by the Agent) display page 3750 (or such
other display page on the Dow Xxxxx Markets Service Systems as may replace
display page 3750) two (2) Business Days prior to the first day of such
Euro-Rate Interest Period for an amount comparable to such Borrowing Tranche and
having a borrowing date and a maturity comparable to such Euro-Rate Interest
Period by (ii) a number equal to 1.00 minus the Euro-Rate Reserve Percentage.
The Euro-Rate may also be expressed by the following formula:
Average of London interbank offered rates quoted by
BBA as shown on Dow Xxxxx Markets Service display
page 3750 British Bankers Association or
appropriate successor
Euro-Rate = 1.00 - Euro-Rate Reserve Percentage
The Euro-Rate shall be adjusted with respect to any Revolving Credit Loan to
which the Euro-Rate Option applies that is outstanding on the effective date of
any change in the Euro-Rate Reserve Percentage as of such effective date. The
Agent shall give prompt notice to the Borrowers of the Euro-Rate as determined
or adjusted in accordance herewith, which determination shall be conclusive
absent manifest error.
Euro-Rate Interest Period shall mean the period of one (1), two
(2), three (3) or six (6) months selected by the Borrowers commencing on the
date of disbursement of Revolving Credit Loan and such successive period
selected by the Borrowers thereafter and may also mean the period of twelve (12)
months if a twelve (12) month Euro-Rate is then available to the Banks and is
selected by the Borrowers, however the Banks are under no obligation whatsoever
to make a twelve (12) month Euro-Rate Interest Period available to the
Borrowers, if such rate is not then available to the Banks; provided, that if a
Euro-Rate Interest Period would end on a day which is not a Business Day, it
shall end on the next succeeding Business Day, unless such day falls in the
succeeding calendar month in which case the Euro-Rate Interest Period shall end
on the next preceding Business Day. In no event shall any Euro-Rate Interest
Period end on a day after the Expiration Date.
Euro-Rate Margin shall mean the percentage rate per annum added
to the Euro-Rate to determine the interest rate per annum under Section
4.1.1(ii) in accordance with the table set out in Section 4.1.1(ii). The
Euro-Rate Margin shall be determined as of and effective as of the due date of
the Borrowers' quarterly financial statements for the first three quarters of
each of the fiscal quarters in each fiscal year and on the sooner of the actual
delivery of the Annual Statements or 90 days after the Borrowers' fiscal year
end.
6
Euro-Rate Option shall mean the Revolving Credi Euro-Rate
Option.
Euro-Rate Reserve Percentage shall mean the maximum percentage in
effect on such day as prescribed by the Board of Governors of the Federal
Reserve System (or any successor) for determining the reserve requirements
(including, without limitation, supplemental, marginal and emergency reserve
requirements) with respect to eurocurrency funding (currently referred to as
"Eurocurrency Liabilities").
Event of Default shall mean any of the events described in
Section 9.1 and referred to therein as an "Event of Default."
Expiration Date shall mean, with respect to the Revolving Credit
Commitments and the Swing Line Commitment, September 16, 2001.
Extending Bank shall have the meaning assigned to such term in
Section 2.10.2.
Facility Fees shall mean the fees referred to in Sections 2.4.
Federal Funds Effective Rate for any day shall mean the rate per
annum (based on a year of 360 days and actual days elapsed and rounded upward to
the nearest 1/100 of 1%) announced by the Federal Reserve Bank of New York (or
any successor) on such day as being the weighted average of the rates on
overnight federal funds transactions arranged by federal funds brokers on the
previous trading day, as computed and announced by such Federal Reserve Bank (or
any successor) in substantially the same manner as such Federal Reserve Bank
computes and announces the weighted average it refers to as the "Federal Funds
Effective Rate" as of the date of this Agreement; provided, if such Federal
Reserve Bank (or its successor) does not announce such rate on any day, the
"Federal Funds Effective Rate" for such day shall be the Federal Funds Effective
Rate for the last day on which such rate was announced.
GAAP shall mean generally accepted accounting principles as are
in effect from time to time, subject to the provisions of Section 1.3, and
applied on a consistent basis both as to classification of items and amounts.
Governmental Acts shall have the meaning assigned to that term in
Section 2.9.8.
Guarantor shall mean any party to this Agreement which is
designated as a "Guarantor" on the signature page hereof and any other Person
which joins this Agreement as a Guarantor after the date hereof.
Guaranty of any Person shall mean any obligation of such Person
guaranteeing or in effect guaranteeing any liability or obligation of any other
Person in any manner, whether directly or indirectly, including any agreement to
indemnify or hold harmless any other Person, any performance bond or other
suretyship arrangement and any other form of assurance against loss, except
endorsement of negotiable or other instruments for deposit or collection in the
ordinary course of business.
7
a
Historical Statements shall have the meaning assigned to that
term in Section 6.1.9(i).
Indebtedness shall mean, as to any Person at any time, any and
all indebtedness, obligations or liabilities (whether matured or unmatured,
liquidated or unliquidated, direct or indirect, absolute or contingent, or joint
or several) of such Person for or in respect of: (i) borrowed money, (ii)
amounts raised under or liabilities in respect of any note purchase or
acceptance credit facility, (iii) reimbursement obligations (contingent or
otherwise) under any letter of credit, currency swap agreement, interest rate
swap, cap, collar or floor agreement or other interest rate management device,
(iv) any other transaction (including forward sale or purchase agreements,
capitalized leases, operating leases that are so called synthetic leases,
nd conditional sales agreements) having the commercial effect of a borrowing of
money entered into by such Person to finance its operations or capital
requirements (but not including trade payables, accrued expenses, deferred
revenue related to the annual running of the Kentucky Derby, and obligations not
exceeding $3,000,000 under outstanding pari-mutuel tickets that are payable with
respect to races run not more than one year prior to the date of determination
which were incurred in the ordinary course of business, which are not
represented by a promissory note or other evidence of indebtedness and (other
than pari- mutuel tickets) which are not more than thirty (30) days past due),
or (v) any Guaranty of Indebtedness for borrowed money.
Indemnity shall mean the Indemnity Agreement in the form of
Exhibit 1.1(I)(1) among the Banks, the Agent and the Loan Parties relating to
possible environmental liabilities associated with any of the Property.
Ineligible Security shall mean any security which may not be
underwritten or dealt in by member banks of the Federal Reserve System under
Section 16 of the Banking Act of 1933 (12 U.S.C.
Section 24, Seventh), as amended.
Insolvency Proceeding shall mean, with respect to any Person, (a)
a case, action or proceeding with respect to such Person (i) before any court or
any other Official Body under any bankruptcy, insolvency, reorganization or
other similar Law now or hereafter in effect, or (ii) for the appointment of a
receiver, liquidator, assignee, custodian, trustee, sequestrator, conservator
(or similar official) of any Loan Party or otherwise relating to the
liquidation, dissolution, winding-up or relief of such Person, or (b) any
general assignment for the benefit of creditors, composition, marshaling of
assets for creditors, or other, similar arrangement in respect of such Person's
creditors generally or any substantial portion of its creditors; undertaken
under any Law.
Intercompany Subordination Agreement shall mean a Subordination
Agreement among the Loan Parties in the form attached hereto as Exhibit
1.1(I)(2).
Interest Period shall have the meaning assigned to such term in
Section 4.3.
Interest Rate Option shall mean any Euro-Rate Option or Base Rate
Option.
Interim Statements shall have the meaning assigned to that term
in Section 6.1.9(i).
8
Internal Revenue Code shall mean the Internal Revenue Code of
1986, as the same may be amended or supplemented from time to time, and any
successor statute of similar import, and the rules and regulations thereunder,
as from time to time in effect.
Joinder Agreement shall mean a joinder by a Person as a Borrower
under this Agreement, and the other Loan Documents in the form of Exhibit
1.1(G)(1).
Labor Contracts shall mean all employment agreements, employment
contracts, collective bargaining agreements and other agreements among any Loan
Party or Subsidiary of a Loan Party and its employees.
Law shall mean any law (including common law), constitution,
statute, treaty, regulation, rule, ordinance, opinion, release, ruling, order,
injunction, writ, decree or award of any Official Body.
Letter of Credit shall have the meaning assigned to that term in
Section 2.9.1.
Letter of Credit Borrowing shall mean an extension of credit
resulting from a drawing under any Letter of Credit which shall not have been
reimbursed on the date when made and shall not have been converted into a
Revolving Credit Loan under Section 2.9.3.2.
Letter of Credit Fee shall have the meaning assigned to that term
in Section 2.9.2.
Letters of Credit Outstanding shall mean at any time the sum of
(i) the aggregate undrawn face amount of outstanding Letters of Credit and (ii)
the aggregate amount of all unpaid and outstanding Reimbursement Obligations.
Lien shall mean any mortgage, deed of trust, pledge, lien,
security interest, charge or other encumbrance or security arrangement of any
nature whatsoever, whether voluntarily or involuntarily given, including any
conditional sale or title retention arrangement, and any assignment, deposit
arrangement or lease intended as, or having the effect of, security and any
filed financing statement or other notice of any of the foregoing (whether or
not a lien or other encumbrance is created or exists at the time of the filing).
Loan Documents shall mean this Agreement, the Agent's Letter, the
Indemnity, the Intercompany Subordination Agreement, the Notes and any other
instruments, certificates or documents delivered or contemplated to be delivered
hereunder or thereunder or in connection herewith or therewith, as the same may
be supplemented or amended from time to time in accordance herewith or
therewith, and Loan Document shall mean any of the Loan Documents.
Loan Parties shall mean the Borrowers.
Loan Request shall have the meaning given to such term in Section
2.5.
Loans shall mean collectively, and Loan shall mean separately,
all Revolving Credit Loans and the Swing Line Loans or any Revolving Credit Loan
or any Swing Line Loan.
9
Material Adverse Change shall mean any set of circumstances or
events which (a) has or could reasonably be expected to have any material
adverse effect whatsoever upon the validity or enforceability of this Agreement
or any other Loan Document, (b) is or could reasonably be expected to be
material and adverse to the business, properties, assets, financial condition,
results of operations or prospects of the Loan Parties taken as a whole, (c)
impairs materially or could reasonably be expected to impair materially the
ability of the Loan Parties taken as a whole to duly and punctually pay or
perform their Indebtedness, or (d) impairs materially or could reasonably be
expected to impair materially the ability of the Agent or any of the Banks, to
the extent permitted, to enforce their legal remedies pursuant to this Agreement
or any other Loan Document.
Month with respect to an Interest Period under the Euro-Rate
Option, shall mean the interval between the days in consecutive calendar months
numerically corresponding to the first day of such Interest Period. If any
Euro-Rate Interest Period begins on a day of a calendar month for which there is
no numerically corresponding day in the month in which such Interest Period is
to end, the final month of such Interest Period shall be deemed to end on the
last Business Day of such final month.
Multiemployer Plan shall mean any employee benefit plan which is
a "multiemployer plan" within the meaning of Section 4001(a)(3) of ERISA and to
which the Borrowers or any member of the ERISA Group is then making or accruing
an obligation to make contributions or, within the preceding five Plan years,
has made or had an obligation to make such contributions.
Multiple Employer Plan shall mean a Plan which has two or more
contributing sponsors (including the Borrowers or any member of the ERISA Group)
at least two of whom are not under common control, as such a plan is described
in Sections 4063 and 4064 of ERISA.
Non Usage Fees shall mean the fees referred to in Section 2.3.
Notes shall mean the Revolving Credit Notes and the Swing
Line Notes.
Notices shall have the meaning assigned to that term in Section
11.6.
Obligation shall mean any obligation or liability of any of the
Loan Parties to the Agent or any of the Banks, howsoever created, arising or
evidenced, whether direct or indirect, absolute or contingent, now or hereafter
existing, or due or to become due, under or in connection with this Agreement,
the Notes, the Letters of Credit, the Agent's Letter or any other Loan Document.
Official Body shall mean any national, federal, state, local or
other government or political subdivision or any agency, authority, bureau,
central bank, commission, department or instrumentality of either, or any court,
tribunal, grand jury or arbitrator, in each case whether foreign or domestic.
Participation Advance shall mean, with respect to any Bank, such
Bank's payment in respect of its participation in a Letter of Credit Borrowing
according to its Ratable Share pursuant to Section 2.9.3.
10
PBGC shall mean the Pension Benefit Guaranty Corporation
established pursuant to Subtitle A of Title IV of ERISA or any successor.
Period shall mean the rolling four quarter period immediately
preceding the date of determination.
Permitted Acquisitions shall have the meaning assigned to such
term in Section 8.2.5.
Permitted Investments shall mean:
(i) direct obligations of the United States of America
or any agency or instrumentality thereof or obligations backed by the full faith
and credit of the United States of America maturing in twelve (12) months or
less from the date of acquisition;
(ii) commercial paper maturing in 180 days or less rated
not lower than A-1, by Standard & Poor's or P-1 by Xxxxx'x Investors Service,
Inc. on the date of acquisition; and
(iii) demand deposits, time deposits or certificates of
deposit maturing within one year in commercial banks whose obligations are rated
A-1, A or the equivalent or better by Standard & Poor's on the date of
acquisition including cash investments disclosed on Exhibit 1.1(P)(iii)
(the demand deposits, time deposits, or certificates of deposit maturing
within one year, and cash investments of Hoosier Park, LP and Xxxxxxxx Park,
Inc. shall not be included on Exhibit 1.1(P)(iii)) which are specifically
allowed even though such cash investments do not meet any of the other
requirements of this definition, and in addition, the Borrowers shall be
allowed to invest an additional $5,000,000 in similar cash investments which
shall also be "Permitted Investments" under this definition;
(iv) interests in various partnerships, limited liabilit
companies and other entities disclosed on Exhibit 1.1(P)(iv); and
(v) other interests in partnerships, limited liability
companies, or other entities, or assets acquired from another Person other
than in the ordinary course of business, not to exceed $15,000,000 in the
aggregate (with any transaction which is a Permitted Acquisition not counting
toward such $15,000,000 limit).
Permitted Liens shall mean:
(i) Liens for taxes, assessments, or similar charges,
incurred in the ordinary course of business and which are not yet due and
payable;
(ii) Pledges or deposits made in the ordinary course of
business to secure payment of workmen's compensation, or to participate in
any fund in connection with workmen's compensation, unemployment insurance,
old-age pensions or other social security programs;
-11-
(iii) Liens of mechanics, materialmen, warehousemen,
carriers, or other like Liens, securing obligations incurred in the ordinary
course of business that are not
yet due and payable and Liens of landlords securing obligations to pay lease
payments that are not yet due and payable or in default;
(iv) Good-faith pledges or deposits made in the ordinary
course of business to secure performance of bids, tenders, contracts (other
than for the repayment of borrowed money) or leases, no in excess of the
aggregate amount due thereunder, or to secure statutory obligations, or surety,
appeal, indemnity, performance or other similar bonds required in the ordinary
course of business;
(v) Encumbrances consisting of zoning restrictions,
easements or other restrictions on the use of real property, none of which
materially impairs the use of such property or the value thereof, and none of
which is violated in any materialrespect by existing or proposed structures or
land use;
(vi) Liens, security interests and mortgages in favor of
the Agent for the benefit of the Banks;
(vii) Any Lien existing on the date of this Agreement and
described on Schedule 1.1(P), or any lien filed against Hoosier Park, LP and
Xxxxxxxx Park, Inc., provided that the principal amount secured thereby is
not hereafter increased, and no additional assets become subject to such Lien;
(viii) Capitalized lease financing and operating lease
financing to the extent of so-called "synthetic leasing," provided that the
aggregate amount of loans and deferred payments secured by such lease financing
shall not exceed $5,000,000 in the aggregate (excluding for the purpose of
this computation any loans or deferred payments secured by Liens described on
Schedule 1.1(P));
(ix) Purchase Money Security interests not to exceed
$5,000,000 in the aggregate;
(x) Unsecured seller financing that is expressly
subordinated to the Credit Facility in an aggregate amount not to exceed
$10,000,000; and
(xi) The following, (A) if the validity or amount thereof
is being contested in good f aith by appropriate and lawful proceedings
diligently conducted so long as levy and execution thereon have been stayed
and continue to be stayed or (B) if a final judgment is entered and such
judgment is discharged within thirty (30) days of entry, and in either case
they do not materially impair the ability of any Loan Party to perform its
Obligations hereunder or under the other Loan Documents:
(1) Claims or Liens for taxes, assessments or charges due
and payable and subject to interest or penalty, provided that the
applicable Loan Party maintains such reserves or other
appropriate provisions as shall be required by GAAP and pays all
such taxes, assessments or charges forthwith upon the
commencement of proceedings to foreclose any such Lien;
-12-
(2) Claims, Liens or encumbrances upon, and defects of
title to, real or personal property, including any attachment of
personal or real property or other legal process prior to
adjudication of a dispute on the merits; or
(3) Claims or Liens of mechanics, materialmen,
warehousemen, carriers, or other statutory nonconsensual Liens.
(4) Liens resulting from final judgments or orders
described in Section 9.1.7.
Person shall mean any individual, corporation, partnership,
limited liability company, association, joint-stock company, trust,
unincorporated organization, joint venture, government or political subdivision
or agency thereof, or any other entity.
Plan shall mean at any time an employee pension benefit plan
(including a Multiple Employer Plan, but not a Multiemployer Plan) which is
covered by Title IV of ERISA or is subject to the minimum funding standards
under Section 412 of the Internal Revenue Code and either (i) is maintained by
any member of the ERISA Group for employees of any member of the ERISA Group or
(ii) has at any time within the preceding five years been maintained by any
entity which was at such time a member of the ERISA Group for employees of any
entity which was at such time a member of the ERISA Group.
PNC Bank shall mean PNC Bank, National Association, its
successors and assigns.
Principal Office shall mean the main banking office of the Agent
in Louisville, Kentucky.
Prohibited Transaction shall mean any prohibited transaction as
defined in Section 4975 of the Internal Revenue Code or Section 406 of ERISA for
which neither an individual nor a class exemption has been issued by the United
States Department of Labor.
Property shall mean all real property, both owned and leased, of
any Loan Party or Subsidiary of a Loan Party.
Purchase Money Security Interest shall mean Liens upon tangible
personal property securing loans to any Loan Party or Subsidiary of a Loan Party
or deferred payments by such Loan Party or Subsidiary for the purchase of such
tangible personal property.
Purchasing Bank shall mean a Bank which becomes a party to this
Agreement by executing an Assignment and Assumption Agreement.
Ratable Share shall mean the proportion that a Bank's Commitment
bears to the Commitments of all of the Banks.
-13-
Regulated Substances shall mean any substance, including any
solid, liquid, semisolid, gaseous, thermal, thoriated or radioactive material,
refuse, garbage, wastes, chemicals, petroleum products, by-products, coproducts,
impurities, dust, scrap, heavy metals, defined as a "hazardous substance,"
"pollutant," "pollution," "contaminant," "hazardous or toxic substance,"
"extremely hazardous substance," "toxic chemical," "toxic waste," "hazardous
waste," "industrial waste," "residual waste," "solid waste," "municipal waste,"
"mixed waste," "infectious waste," "chemotherapeutic waste," "medical waste," or
"regulated substance" or any related materials, substances or wastes as now or
hereafter defined pursuant to any Environmental Laws, ordinances, rules,
regulations or other directives of any Official Body, the generation,
manufacture, extraction, processing, distribution, treatment, storage, disposal,
transport, recycling, reclamation, use, reuse, spilling, leaking, dumping,
injection, pumping, leaching, emptying, discharge, escape, release or other
management or mismanagement of which is regulated by the Environmental Laws.
Regulation U shall mean Regulation U, T, G or X as promulgated by
the Board of Governors of the Federal Reserve System, as amended from time to
time.
Reimbursement Obligation shall have the meaning assigned to such
term in Section 2.9.3.2.
Reportable Event shall mean a reportable event described in
Section 4043 of ERISA and regulations thereunder with respect to a Plan or
Multiemployer Plan.
Request for Swing Line Loan shall mean a duly completed Request
for a Swing Line Loan in the form of Exhibit 3.1.4.
Required Banks shall mean
(i) if there are no Loans, Reimbursement Obligations or
Letter of Credit Borrowings outstanding, Banks whose Commitments aggregate at
least 66 2/3 % of the Commitments of all of the Banks, or
(ii) if there are Loans, Reimbursement Obligations, or
Letter of Credit Borrowings outstanding, any Bank or group of Banks if the sum
of the Loans, Reimbursement Obligations and Letter of Credit Borrowings of
such Banks then outstanding aggregates at least 66 2/3 % of the total
principal amount of all of the Loans , Reimbursement Obligations and Letter of
Credit Borrowings then outstanding. Reimbursement Obligations and Letter of
Credit Borrowings shall be deemed, for purposes of this definition, to be in
favor of the Agent and not a participating Bank if such Bank has not made its
Participation Advance in respect thereof and shall be deemed to be in favor of
such Bank to the extent of its Participation Advance if it has made its
Participation Advance in respect thereof.
Revolving Credit Activation Fee shall mean the fees referred to
in Section 2.4.
Revolving Credit Base Rate Option shall mean the option of the
Borrowers to have Revolving Credit Loans bear interest at the rate and under the
terms and conditions set forth in Section 4.1.1(i).
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Revolving Credit Commitment shall mean, as to any Bank at any
time, the amount initially set forth opposite its name on Schedule 1.1(B) in the
column labeled "Amount of Commitment for Revolving Credit Loans," and thereafter
on Schedule I to the most recent Assignment and Assumption Agreement, and
Revolving Credit Commitments shall mean the aggregate Revolving Credit
Commitments of all of the Banks. The Revolving Credit Commitment of the Swing
Line Lender at any time of determination for purposes of funding requests for
Revolving Credit Loans is the amount set out on Schedule 1.1(B) for "Amount of
Commitment for Revolving Credit Loans" (and thereafter on Schedule I to the most
recent Assignment and Assumption Agreement) less the aggregate outstanding
principal of Swing Line Loans, in each case at the time determined. The
Revolving Credit Commitment of the Swing Line Lender for purposes of voting as a
Bank, including without limitation determining whether the Required Banks have
agreed upon or directed any decision and/or action is the amount set out in
Schedule 1.1(B) or Schedule I, as appropriate, without reduction for the
outstanding principal of Swing Line Loans.
Revolving Credit Euro-Rate Option shall mean the option of the
Borrowers to have Revolving Credit Loans bear interest at the rate and under the
terms and conditions set forth in Section 4.1.1(ii).
Revolving Credit Loans shall mean collectively and Revolving
Credit Loan shall mean separately all Revolving Credit Loans or any Revolving
Credit Loan made by the Banks or one of the Banks to the Borrowers pursuant to
Section 2.1 or 2.9.3.
Revolving Credit Notes shall mean collectively and Revolving
Credit Note shall mean separately all the Revolving Credit Notes of the
Borrowers in the form of Exhibit 1.1(R) evidencing the Revolving Credit
Loans together with all amendments, extensions, renewals, replacements,
refinancings or refundings thereof in whole or in part.
Revolving Facility Usage shall mean at any time the sum of the
Revolving Credit Loans outstanding and the Letters of Credit Outstanding.
Revolving Line of Credit shall mean the sums advanced or to be
advanced by the Banks to the Borrower for the purposes described in Section 2.8.
Section 20 Subsidiary shall mean the Subsidiary of the bank
holding company controlling any Bank, which Subsidiary has been granted
authority by the Federal Reserve Board to underwrite and deal in certain
Ineligible Securities.
Shares shall have the meaning assigned to that term in Section
6.1.2.
Standard & Poor's shall mean Standard & Poor's Ratings Services,
a division of The XxXxxx-Xxxx Companies, Inc.
Standby Letter of Credit shall mean a Letter of Credit issued to
support obligations of one or more of the Loan Parties, contingent or otherwise,
which finance the working capital and business needs of the Loan Parties
incurred in the ordinary course of business.
-15-
Subsidiary of any Person at any time shall mean (i) any
corporation or trust of which more than 50% (by number of shares or number of
votes) of the outstanding capital stock or shares of beneficial interest
normally entitled to vote for the election of one or more directors or trustees
(regardless of any contingency which does or may suspend or dilute the voting
rights) is at such time owned directly or indirectly by such Person or one or
more of such Person's Subsidiaries, (ii) any partnership of which such Person is
a general partner or of which more than 50% of the partnership interests is at
the time directly or indirectly owned by such Person or one or more of such
Person's Subsidiaries, (iii) any limited liability company of which such Person
is a member of which more than 50% of the limited liability company interests is
at the time directly or indirectly owned by such Person or one or more of such
Person's Subsidiaries or (iv) any corporation, trust, partnership, limited
liability company or other entity which is controlled or capable of being
controlled by such Person or one or more of such Person's Subsidiaries.
Subsidiary Shares shall have the meaning assigned to that term in
Section 6.1.3.
Swing Line Commitment Period shall mean the period of time from
the date of this Agreement through the Expiration Date.
Swing Line Credit Facility shall mean the credit facility
established in Section 3 of this Agreement.
Swing Line Commitment at any time of determination shall mean the
lesser of (a) the dollar amount of the aggregate of the Revolving Credit
Commitments of all of the Banks minus the sum of (1) the aggregate maximum
available drawings under all Letters of Credit outstanding, and (2) the
aggregate principal of all Revolving Credit Loans, in each case at the time
determined, or (b) Ten Million Dollars ($10,000,000).
Swing Line of Credit shall mean the Swing Line Credit Facility.
Swing Line Lender shall mean PNC Bank, National Association and
its permitted successors and assigns.
Swing Line Loan shall have the meaning given to such term in
Section 3.1; Swing Line Loans shall mean collectively all of the Swing Line
Loans.
Swing Line Note shall mean the Swing Line Note of the Borrowers
in the form of Exhibit 1.1(S) evidencing the Swing Line Loans together with all
amendments, extensions, renewals, replacements, refinancings or refunds thereof
in whole or in part.
Transferor Bank shall mean the selling Bank pursuant to an
Assignment and Assumption Agreement.
Uniform Commercial Code shall mean the Uniform Commercial Code as
adopted in the Commonwealth of Kentucky from time to time.
-16-
Unmatured Default shall mean any event or condition which with
notice, passage of time or a determination by the Agent or the Required Banks,
or any combination of the foregoing, would constitute an Event of Default.
1.2 Construction.
Unless the context of this Agreement otherwise clearly requires, the
following rules of construction shall apply to this Agreement and each of the
other Loan Documents:
1.2.1 Number; Inclusion.
references to the plural include the singular, the plural, the
part and the whole; "or" has the inclusive meaning represented by the phrase
"and/or," and "including" has the meaning represented by the phrase "including
without limitation";
1.2.2 Determination.
references to "determination" of or by the Agent or the Banks
shall be deemed to include good-faith estimates by the Agent or the Banks (in
the case of quantitative determinations) and good-faith beliefs by the Agent or
the Banks (in the case of qualitative determinations) and such determination
shall be conclusive absent manifest error;
1.2.3 Agent's Discretion and Consent.
whenever the Agent or the Banks are granted the right herein to
act in its or their sole discretion or to grant or withhold consent such right
shall be exercised in good faith;
1.2.4 Documents Taken as a Whole.
the words "hereof," "herein," "hereunder," "hereto" and similar
terms in this Agreement or any other Loan Document refer to this Agreement or
such other Loan Document as a whole and not to any particular provision of this
Agreement or such other Loan Document;
1.2.5 Headings.
the section and other headings contained in this Agreement or
such other Loan Document and the Table of Contents (if any), preceding this
Agreement or such other Loan Document are for reference purposes only and shall
not control or affect the construction of this Agreement or such other Loan
Document or the interpretation thereof in any respect;
1.2.6 Implied References to this Agreement.
article, section, subsection, clause, schedule and exhibit
references are to this Agreement or other Loan Document, as the case may be,
unless otherwise specified;
1.2.7 Persons.
reference to any Person includes such Person's successors and
assigns but, if applicable, only if such successors and assigns are permitted by
this Agreement or such other Loan Document, as the case may be, and reference to
a Person in a particular capacity excludes such Person in any other capacity;
-17-
1.2.8 Modifications to Documents.
reference to any agreement (including this Agreement and any
other Loan Document together with the schedules and exhibits hereto or thereto),
document or instrument means such agreement, document or instrument as amended,
modified, replaced, substituted for, superseded or restated;
1.2.9 From, To and Through.
relative to the determination of any period of time, "from" means
"from and including," "to" means "to but excluding," and "through" means
"through and including";
1.2.10 Shall; Will.
references to "shall" and "will" are intended to have the same
meaning; and
1.2.11 Consolidated Financial Information.
whenever this Agreement uses "consolidated" (whether or not
capitalized) with respect to accounting or financial terms or financial
statements relating to the Borrowers, that reference means only the "Borrowers"
as defined in Section 1.1 consolidated with each other in accordance with GAAP,
and otherwise combined with each other as if they were consolidated whether or
not required or permitted in accordance with GAAP; but that reference does
not mean the Borrowers consolidated or combined with any other Person,
even if that Person is an Affiliate of one or more of the Borrowers (such as,
by way of example, Hoosier Park, L.P. and Xxxxxxxx Park, Inc.) and even
if GAAP would require or permit that affiliated Person to be consolidated or
combined with the Borrowers.
1.3 Accounting Principles.
Except as otherwise provided in this Agreement, all computations and
determinations as to accounting or financial matters and all financial
statements to be delivered pursuant to this Agreement shall be made and prepared
in accordance with GAAP (including principles of consolidation where
appropriate), and all accounting or financial terms shall have the meanings
ascribed to such terms by GAAP; provided, however, that all accounting terms
used in Section 8.2 [Negative Covenants] (and all defined terms used in the
definition of any accounting term used in Section 8.2) shall have the meaning
given to such terms (and defined terms) under GAAP as in effect on the date
hereof applied on a basis consistent with those used in preparing the Annual
Statements referred to in Section 6.1.9(i) [Historical Statements]. In the event
of any change after the date hereof in GAAP, and if such change would result in
the inability to determine compliance with the financial covenants set forth in
Section 8.2 based upon the Borrowers' regularly prepared financial statements by
reason of the preceding sentence, then the parties hereto agree to endeavor, in
good faith, to agree upon an amendment to this Agreement that would adjust such
financial covenants in a manner that would not affect the substance thereof, but
would allow compliance therewith to be determined in accordance with the
Borrowers' financial statements at that time.
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2. REVOLVING CREDIT FACILITY
2.1 Revolving Credit Commitments.
Subject to the terms and conditions hereof and relying upon the
representations and warranties herein set forth, each Bank severally agrees to
make Revolving Credit Loans to the Borrowers at any time or from time to time on
or after the date hereof to the Expiration Date provided that after giving
effect to such Loan the aggregate amount of Loans from such Bank shall not
exceed such Bank's Revolving Credit Commitment minus such Bank's Ratable Share
of the Letters of Credit Outstanding. Within such limits of time and amount and
subject to the other provisions of this Agreement, the Borrowers may borrow,
repay and reborrow pursuant to this Section 2.1.
2.2 Nature of Banks' Obligations with Respect to Revolving Credit
Loans.
Each Bank shall be obligated to participate in each request for
Revolving Credit Loans pursuant to Section 2.5 [Revolving Credit Loan Requests]
in accordance with its Ratable Share. The aggregate of each Bank's Revolving
Credit Loans outstanding hereunder to the Borrowers at any time shall never
exceed its Revolving Credit Commitment minus its Ratable Share of the Letter of
Credit Outstandings. The obligations of each Bank hereunder are several. The
failure of any Bank to perform its obligations hereunder shall not affect the
Obligations of the Borrowers to any other party nor shall any other party be
liable for the failure of such Bank to perform its obligations hereunder. The
Banks shall have no obligation to make Revolving Credit Loans or issue any
Letters of Credit hereunder on or after the Expiration Date.
2.3 Non Usage Fees.
Accruing from the date hereof until the Expiration Date, the Borrowers
agree to pay to the Agent for the account of each Bank, on a pro rata basis, on
the first Business Day of each October, January, April and July so long as the
Revolving Credit Facility is in effect, a Non Usage Fee (the "Non Usage Fee") in
an amount equal to the average unused amount of the aggregate Revolving Credit
Commitments multiplied by the applicable fee percentage based on the applicable
level in accordance with the table set forth below. Such average unused amount
shall be the amount by which the average principal balance of amounts
outstanding under the Revolving Credit Notes (including the maximum available
drawings under outstanding Letters of Credit) and the amounts outstanding under
the Swing Line Note beginning on the date hereof, for each quarter beginning
October, January, April and July, is less than the maximum amount available
under the Revolving Credit Facility. Such fee shall be determined by the Agent
effective quarterly as of the due date of the Borrowers' quarterly financial
statements for the first three quarters of each of the fiscal quarters in each
fiscal year and on the sooner of the actual delivery of the Annual Statements or
90 days after the Borrowers' fiscal year end. The Non Usage Fee shall be payable
upon the Borrower's receipt of the Agent's invoice for such amount. Such fee
shall be calculated on the basis of the number of days in the particular quarter
on the assumption that an entire year's interest is earned in 360 days, as the
case may be.
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LEVEL I LEVEL II LEVEL III LEVEL IV LEVEL V LEVEL VI
------- -------- --------- -------- ------- --------
Basis for If the ratio of If the ratio of If the ratio of If the ratio of If the ratio of If the ratio of
Non Usage the the the the the the Borrowers'
Fee Borrowers' Borrowers' Borrowers' Borrowers' Borrowers' Total
Total Total Total Total Total Consolidated
Consolidated Consolidated Consolidated Consolidated Consolidated Funded
Funded Funded Funded Funded Funded Indebtedness
Indebtedness Indebtedness Indebtedness Indebtedness Indebtedness to the
to The to The to the to the to the Borrowers'
Borrowers' Borrowers' Borrowers' Borrowers' Borrowers' Consolidated
Consolidated Consolidated Consolidated Consolidated Consolidated EBITDA is
EBITDA is EBITDA is EBITDA is EBITDA is EBITDA is equal to or
less than 1.0 equal to or equal to or equal to or equal to or greater than
to 1.0 greater than greater than greater than greater than 3.5* to 1.0
1.0 to 1.0 1.5 to 1.0 2.0 to 1.0 2.5 to 1.0
but less than but less than but less than but less than
1.5 to 1.0 2.0 to 1.0 2.5 to 1.0 3.5 to 1.0
1.0
Then the 12.5 Basis 12.5 Basis 20 Basis 20 Basis 30 Basis 30 Basis
Fee Points Points Points Points Points Points
Percentage
is
*From and after January 1, 2000, this number will become 3.25.
2.4 Closing Fee.
Borrowers agree to pay to the Agent for the account of each Bank, as
consideration for such Bank's Revolving Credit Commitment, a nonrefundable
facility fee equal to 1/8% of such Bank's Revolving Credit Commitment, payable
on the Closing Date.
2.5 Revolving Credit Loan Requests.
Except as otherwise provided herein, the Borrowers may from time to time
prior to the Expiration Date request the Banks to make Revolving Credit Loans,
or renew or convert the Interest Rate Option applicable to existing Revolving
Credit Loans pursuant to Section 4.3 [Interest Periods], by delivering to the
Agent, not later than 10:00 a.m., Pittsburgh time, (i) three (3) Business Days
prior to the proposed Borrowing Date with respect to the making of Revolving
Credit Loans to which the Euro-Rate Option applies or the conversion to or the
renewal of the Euro-Rate Option for any Loans; and (ii) one (1) Business Day
prior to either the proposed Borrowing Date with respect to the making of a
Revolving Credit Loan to which the Base Rate Option applies or the last day of
the preceding Interest Period with respect to the conversion to the Base Rate
Option for any Loan, of a duly completed request therefor substantially in the
form of Exhibit 2.5 or a request by telephone immediately confirmed in writing
by letter, facsimile or telex in such form (each, a "Loan Request"), it being
understood that the Agent may rely on the authority of any individual making
such a telephonic request without the necessity of receipt of such written
confirmation. Each Loan Request shall be irrevocable and shall specify (i) the
proposed Borrowing Date; (ii) the aggregate amount of the proposed Loans
comprising each Borrowing Tranche, which shall be in whole integer multiples of
$100,000 and not less than $500,000 for each Borrowing Tranche to which the
Euro- Rate Option applies and not less than the lesser of $500,000 or the
maximum amount available for Borrowing Tranches to which the Base Rate Option
applies; (iii) whether the Euro-Rate Option or Base Rate Option shall apply to
the proposed Loans comprising the applicable Borrowing Tranche; and (iv) in the
case of a Borrowing Tranche to which the Euro-Rate Option applies, an
appropriate Interest Period for the Loans comprising such Borrowing Tranche.
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2.6 Making Revolving Credit Loans.
The Agent shall, promptly after receipt by it of a Loan Request pursuant
to Section 2.5 [Revolving Credit Loan Requests], notify the Banks of its receipt
of such Loan Request specifying: (i) the proposed Borrowing Date and the time
and method of disbursement of the Revolving Credit Loans requested thereby; (ii)
the amount and type of each such Revolving Credit Loan and the applicable
Interest Period (if any); and (iii) the apportionment among the Banks of such
Revolving Credit Loans as determined by the Agent in accordance with Section 2.2
[Nature of Banks' Obligations]. Each Bank shall remit the principal amount of
each Revolving Credit Loan to the Agent such that the Agent is able to, and the
Agent shall, to the extent the Banks have made funds available to it for such
purpose and subject to Section 7.2 [Each Additional Loan], fund such Revolving
Credit Loans to the Borrowers in U.S. Dollars and immediately available funds at
the Principal Office prior to 2:00 p.m., Pittsburgh time, on the applicable
Borrowing Date, provided that if any Bank fails to remit such funds to the Agent
in a timely manner, the Agent may elect in its sole discretion to fund with its
own funds the Revolving Credit Loans of such Bank on such Borrowing Date, and
such Bank shall be subject to the repayment obligation in Section 10.16
[Availability of Funds].
2.7 Revolving Credit Notes.
The Obligation of the Borrowers to repay the aggregate unpaid principal
amount of the Revolving Credit Loans made to it by each Bank, together with
interest thereon, shall be evidenced by a Revolving Credit Note dated the
Closing Date payable to the order of such Bank in a face amount equal to the
Revolving Credit Commitment of such Bank.
2.8 Use of Proceeds.
The proceeds of the Revolving Credit Loans shall be used for general
corporate and working capital purposes and also for the acquisition of
equipment, property and other entities and in accordance with Section 6.1.10
[Use of Proceeds; Margin Stock; Section 20 Subsidiaries] and Section 8.1.10 [Use
of Proceeds].
-21-
2.9 Letter of Credit Subfacility.
2.9.1 Issuance of Letters of Credit.
Borrowers may request the issuance of a letter of credit (each a
"Letter of Credit") on behalf of itself or another Loan Party by delivering to
the Agent a completed application and agreement for letters of credit in such
form as the Agent may specify from time to time by no later than 10:00 a.m.,
Pittsburgh time, at least three (3) Business Days, or such shorter period as may
be agreed to by the Agent, in advance of the proposed date of issuance. Each
Letter of Credit shall be either a Standby Letter of Credit or a Commercial
Letter of Credit. Subject to the terms and conditions hereof and in reliance on
the agreements of the other Banks set forth in this Section 2.9, the Agent will
issue a Letter of Credit provided that each Letter of Credit shall (A) have a
maximum maturity of twelve (12) months from the date of issuance, and (B) in no
event expire later than ten (10) Business Days prior to the Expiration Date and
provided further that in no event shall (i) the Letters of Credit Outstanding
exceed, at any one time, $10,000,000 or (ii) the Revolving Facility Usage
exceed, at any one time, the Revolving Credit Commitments.
2.9.2 Letter of Credit Fees.
The Borrowers shall pay to the Agent for the ratable account of
the Banks a fee (the "Letter of Credit Fee") equal to the applicable Fee
Percentage as determined from the chart set forth in Section 4.1.1, which fees
shall be computed on the daily average Letters of Credit Outstanding and shall
be payable quarterly in arrears commencing with the first Business Day of each
October, January, April and July following issuance of each Letter of Credit and
on the Expiration Date. The Borrowers shall also pay to the Agent for the
Agent's sole account a fee in the amount of 1/8% of the amount of any Letters of
Credit issued per annum, payable quarterly in arrears commencing on the first
Business Day of each October, January, April and July.
2.9.3 Disbursements, Reimbursement.
2.9.3.1 Immediately upon the Issuance of each Letter of
Credit, each Bank shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the Agent a participation in such
Letter of Credit and each drawing thereunder in an amount equal to such
Bank's Ratable Share of the maximum amount available to be drawn under such
Letter of Credit and the amount of such drawing, respectively.
2.9.3.2 In the event of any request for a drawing under a
Letter of Credit by the beneficiary or transferee thereof, the Agent will
promptly notify the Borrowers. Provided that it shall have received such
notice, the Borrowers shall reimburse (such obligation to reimburse the Agent
shall sometimes be referred to as a "Reimbursement Obligation") the Agent prior
to 12:00 noon, Pittsburgh time on each date that an amount is paid by the
Agent under any Letter of Credit (each such date, an "Drawing Date") in an
amount equal to the amount so paid by the Agent. In the event the Borrowers
fail to reimburse the Agent for the full amount of any drawing under any Letter
of Credit by 12:00 noon, Pittsburgh time, on the Drawing Date, the Agent will
promptly notify each Bank thereof, and the Borrowers shall be deemed to have
requested that Revolving Credit Loans be made by the Banks under the Base Rate
Option to be disbursed on the Drawing Date under such Letter of Credit,
subject to the amount of the unutilized portion of the Revolving Credit
Commitment and subject to the conditions set forth in Section 7.2 [Each
Additional Loan] other than any notice requirements. Any notice given by the
Agent pursuant to this Section 2.9.3.2 may be oral if immediately confirmed
in writing; provided that the lack of such an immediate confirmation shall not
affect the conclusiveness or binding effect of suchotice.
-22-
2.9.3.3 Each Bank shall upon any notice pursuant to
Section 2.9.3.2 make available to the Agent an amount in immediately available
funds equal to its Ratable Share of the amount of the drawing, whereupon the
participating Banks shall (subject to Section 2.9.3.4) each be deemed to
have made a Revolving Credit Loan under the Base Rate Option to the Borrowers
in that amount. If any Bank so notified fails to make available to the Agent
for the account of the Agent the amount of such Bank's Ratable Share of such
amount by no later than 2:00 p.m., Pittsburgh time on the Drawing Date, then
interest shall accrue on such Bank's obligation to make such payment, from the
Drawing Date to the date on which such Bank makes such payment (i) at a rate
per annum equal to the Federal Funds Effective Rate during the first three days
following the Drawing Date and (ii) at a rate per annum equal to the rate
applicable to Loans under the Revolving Credit Base Rate Option on and after
the fourth day following the Drawing Date. The Agent will promptly give notice
of the occurrence of the Drawing Date, but failure of the Agent to give any
such notice on the Drawing Date or in sufficient time to enable any Bank to
effect such payment on such date shall not relieve such Bank from its obligation
under this Section 2.9.3.3.
2.9.3.4 With respect to any unreimbursed drawing that
is not converted into Revolving Credit Loans under the Base Rate Option to the
Borrowers in whole or in part as contemplated by Section 2.9.3.2, because of the
Borrowers' failure to satisfy the conditions set forth in Section 7.2 [Each
Additional Loan] other than any notice requirements or for any other reason,
the Borrowers shall be deemed to have incurred from the Agent a Letter of Credit
Borrowing in the amount of such drawing. Such Letter of Credit Borrowing shall
be due and payable on demand (together with interest) and shall bear interest at
the rate per annum applicable to the Revolving Credit Loans under the Base Rate
Option. Each Bank's payment to the Agent pursuant to Section 2.9.3.3 shall be
deemed to be a payment in respect of its participation in such Letter of Credit
Borrowing and shall constitute a Participation Advance from such Bank in
satisfaction of its participation obligation under this Section 2.9.3.
2.9.4 Repayment of Participation Advances.
2.9.4.1 Upon (and only upon) receipt by the Agent for
its account of immediately available funds from the Borrowers (i) in
reimbursement of any payment made by the Agent under the Letter of Credit wit
respect to which any Bank has made a Participation Advance to the Agent, or
(ii) in payment of interest on such a payment made by the Agent under such a
Letter of Credit, the Agent will pay to each Bank, in the same funds as those
received by the Agent, the amount of such Bank's Ratable Share of such funds,
except the Agent shall retain the amount of the Ratable Share of such funds
of any Bank that did not make a Participation Advance in respect of such payment
by Agent.
2.9.4.2 If the Agent is required at any time to return
to any Loan Party, or
-23-
to a trustee, receiver, liquidator, custodian, or any official in any Insolvency
Proceeding, any portion of the payments made by any Loan Party to the Agent
pursuant to Section 2.9.4.1 in reimbursement of a payment made under the Letter
of Credit or interest or fee thereon, each Bank shall, on demand of the Agent,
forthwith return to the Agent the amount of its Ratable Share of any amounts so
returned by the Agent plus interest thereon from the date such demand is made to
the date such amounts are returned by such Bank to the Agent, at a rate per
annum equal to the Federal Funds Effective Rate in effect from time to time.
2.9.5 Documentation.
Each Loan Party agrees to be bound by the terms of the Agent's
application and agreement for letters of credit and the Agent's written
regulations and customary practices relating to letters of credit, though such
interpretation may be different from the such Loan Party's own. In the event of
a conflict between such application or agreement and this Agreement, this
Agreement shall govern. It is understood and agreed that, except in the case of
gross negligence or willful misconduct, the Agent shall not be liable for any
error, negligence and/or mistakes, whether of omission or commission, in
following any Loan Party's instructions or those contained in the Letters of
Credit or any modifications, amendments or supplements thereto.
2.9.6 Determinations to Honor Drawing Requests.
In determining whether to honor any request for drawing under any
Letter of Credit by the beneficiary thereof, the Agent shall be responsible only
to determine that the documents and certificates required to be delivered under
such Letter of Credit have been delivered and that they comply on their face
with the requirements of such Letter of Credit.
2.9.7 Nature of Participation and Reimbursement Obligations.
Each Bank's obligation in accordance with this Agreement to make
the Revolving Credit Loans or Participation Advances, as contemplated by Section
2.9.3, as a result of a drawing under a Letter of Credit, and the Obligations of
the Borrowers to reimburse the Agent upon a draw under a Letter of Credit, shall
be absolute, unconditional and irrevocable, and shall be performed strictly in
accordance with the terms of this Section 2.9 under all circumstances, including
the following circumstances:
(i) any set-off, counterclaim, recoupment, defense or
other right which such Bank may have against the Agent, the Borrowers or any
other Person for any reason whatsoever;
(ii) the failure of any Loan Party or any other Person
to comply, in connection with a Letter of Credit Borrowing, with the conditions
set forth in Section 2.1 [Revolving Credit Commitments], 2.5 [Revolving
Credit Loan Requests], 2.6 [Making Revolving Credit Loans] or 7.2 [Each
Additional Loan] or as otherwise set forth in this Agreement for the making o
a Revolving Credit Loan, it being acknowledged that such conditions are not
required for the making of a Letter of Credit Borrowing and the obligatio
of the Banks to make Participation Advances under Section 2.9.3;
-24-
(iii) any lack of validity or enforceability of any
Letter of Credit;
(iv) the existence of any claim, set-off, defense or
other right which any Loan Party or any Bank may have at any time against
a beneficiary or any transferee of any Letter of Credit (or any Persons for
whom any such transferee may be acting), the Agent or any Bank or any other
Person or, whether in connection with this Agreement, the transactions
contemplated herein or any unrelated transaction (including any underlying
transaction between any Loan Party or Subsidiaries of a Loan Party and the
beneficiary for which any Letter of Credit was procured);
(v) any draft, demand, certificate or other document
presented under any Letter of Credit proving to be forged, fraudulent, invalid
or insufficient in any respect or any statement therein being untrue or
inaccurate in any respect even if the Agent has been notified thereof;
(vi) payment by the Agent under any Letter of Credit
against presentation of a demand, draft or certificate or other document which
does not comply with the terms of such Letter of Credit;
(vii) any adverse change in the business, operations,
properties, assets, condition (financial or otherwise) or prospects of any Loan
Party or Subsidiaries of a Loan Party;
(viii) any breach of this Agreement or any other Loan
Document by any party thereto;
(ix) the occurrence or continuance of an Insolvency
Proceeding with respect to any Loan Party;
(x) the fact that an Event of Default or a Unmatured
Default shall have occurred and be continuing;
(xi) the fact that the Expiration Date shall have passed
or this Agreement or the Commitments hereunder shall have been terminated; and
(xii) any other circumstance or happening whatsoever,
whether or not similar to any of the foregoing.
2.9.8 Indemnity.
In addition to amounts payable as provided in Section 10.5
[Reimbursement of Agent by Borrowers, Etc.], the Borrowers hereby agree to
protect, indemnify, pay and save harmless the Agent from and against any and all
claims, demands, liabilities, damages, losses, costs, charges and expenses
(including reasonable fees, expenses and disbursements of counsel) which the
Agent may incur or be subject to as a consequence, direct or indirect, of (i)
the issuance of any Letter of Credit, other than as a result of (A) the gross
negligence or willful misconduct of the Agent as determined by a final judgment
of a court of competent jurisdiction or (B) subject to the following clause
(ii), the wrongful dishonor by the Agent of a proper demand for payment made
under any Letter of Credit, or (ii) the failure of the Agent to honor a drawing
under any such Letter of Credit as a result of any act or omission, whether
rightful or wrongful, of any present or future de jure or de facto government or
governmental authority (all such acts or omissions herein called "Governmental
Acts").
-25-
2.9.9 Liability for Acts and Omissions.
As between any Loan Party and the Agent, such Loan Party assumes
all risks of the acts and omissions of, or misuse of the Letters of Credit by,
the respective beneficiaries of such Letters of Credit. In furtherance and not
in limitation of the foregoing, the Agent shall not be responsible for: (i) the
form, validity, sufficiency, accuracy, genuineness or legal effect of any
document submitted by any party in connection with the application for an
issuance of any such Letter of Credit, even if it should in fact prove to be in
any or all respects invalid, insufficient, inaccurate, fraudulent or forged
(even if the Agent shall have been notified thereof); (ii) the validity or
sufficiency of any instrument transferring or assigning or purporting to
transfer or assign any such Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason; (iii) the failure of the beneficiary of
any such Letter of Credit, or any other party to which such Letter of Credit may
be transferred, to comply fully with any conditions required in order to draw
upon such Letter of Credit or any other claim of any Loan Party against any
beneficiary of such Letter of Credit, or any such transferee, or any dispute
between or among any Loan Party and any beneficiary of any Letter of Credit or
any such transferee; (iv) errors, omissions, interruptions or delays in
transmission or delivery of any messages, by mail, cable, telegraph, telex or
otherwise, whether or not they be in cipher; (v) errors in interpretation of
technical terms; (vi) any loss or delay in the transmission or otherwise of any
document required in order to make a drawing under any such Letter of Credit or
of the proceeds thereof; (vii) the misapplication by the beneficiary of any such
Letter of Credit of the proceeds of any drawing under such Letter of Credit; or
(viii) any consequences arising from causes beyond the control of the Agent,
including any Governmental Acts, and none of the above shall affect or impair,
or prevent the vesting of, any of the Agent's rights or powers hereunder.
Nothing in the preceding sentence shall relieve the Agent from liability for the
Agent's gross negligence or willful misconduct in connection with actions or
omissions described in such clauses(i) through (viii) of such sentence.
In furtherance and extension and not in limitation of the
specific provisions set forth above, any action taken or omitted by the Agent
under or in connection with the Letters of Credit issued by it or any documents
and certificates delivered thereunder, if taken or omitted in good faith, shall
not put the Agent under any resulting liability to the Borrowers or any Bank.
2.10 Extension by Banks of the Expiration Date.
2.10.1 Requests; Approval by All Banks.
Upon or promptly after delivery by the Borrowers of the annual
financial statements to be provided under Section 8.3.2 [Annual Financial
Statements] for the fiscal year ending December 31, 1998 or any subsequent
fiscal year, the Borrowers may request a one-year extension of the Expiration
Date by written notice to the Agent on behalf of the Banks, and the Banks agree
to respond to the Borrowers' request for an extension by the later of sixty (60)
days following Agent's receipt of the request; provided, however, that the
failure of any Bank to respond within such time period shall not in any manner
constitute an agreement by such Bank to extend the Expiration Date. If all Banks
elect to extend, the Expiration Date shall be extended for a period of one year.
If one or more Banks decline to extend or do not respond to Borrowers' request,
the provisions of Section 2.10.2 shall apply.
-26-
2.10.2 Approval by Required Banks.
In the event that one or more Banks do not agree to extend the
Expiration Date or do not respond to Borrowers' request for an extension within
the time required under Section 2.10.1 (each a "Bank to be Terminated"), but the
Required Banks agree to such extension within such time then the Banks which
have agreed to such extension within the time required under Section 2.10.1
(each an "Extending Bank") may, with the prior written approval of the Borrowers
and the Agent, arrange to have one or more other banks (each an "Assignee Bank")
purchase all of the outstanding Loans, if any, of the Bank to be Terminated and
succeed to and assume the Commitments and all other rights, interests and
obligations of the Bank to be Terminated under this Agreement and the other Loan
Documents. Any such purchase and assumption shall be (1) pursuant to an
Assignment and Assumption Agreement, (2) subject to and in accordance with
Section 11.11 [Successors and Assigns], and (3) effective on the last day of the
Interest Period if any Loans are outstanding under the Euro-Rate Option. The
Borrowers shall pay all amounts due and payable to the Bank to be Terminated on
the effective date of such Assignment and Assumption Agreement. In the event
that the Agent shall become a Bank to be Terminated, the provisions of this
Section 2.10 shall be subject to Section 10.14 [Successor Agent]. In the event
that the Loans and Commitments of a Bank to be Terminated are not fully
assigned and assumed pursuant to Section 2.10.2 then the Expiration Date shal
not be extended for any Bank.
2.11 Voluntary Reductions. So long as no Event of Default or Unmatured
Default has occurred and continues uncured, the Borrowers may make voluntary
reductions in the amount of the Revolving Line of Credit, and the concomitant
aggregate Revolving Credit Commitments of all the Banks, at any time after the
Closing Date and after satisfaction of all conditions provided in Section 7 of
this Agreement, including payment of all fees and expenses, subject to the
following:
(i) each request for a voluntary reduction shall be in the
amount of $10,000,000.00 or more, in whole integer
multiples of $1,000,000;
(ii) the Borrowers shall have submitted written notice of a
request for a voluntary reduction to the Banks not less
than thirty (30) nor more than ninety (90) days before the
date on which the Borrowers desire the voluntary reduction
to become effective;
(iii) the written notice of a request for a voluntary reduction
submitted to the Banks shall set forth the date on which
the voluntary reduction shall be effective and the amount
of the requested voluntary reduction;
(iv) a written notice of request for a voluntary reduction
shall be irrevocable, and may be withdrawn only with the
consent of the Agent;
-27-
(v) on the date provided in the Borrowers' notice of voluntary
reduction given in accordance with subsections 2.11(ii)
and (iii) above, the Revolving Line of Credit and the
concomitant aggregate Revolving Credit Commitments of all
of the Banks, shall be permanently reduced by the amount
stated in that notice of voluntary reduction;
(vi) any reduction in the Revolving Line of Credit shall result
in the reduction of each Bank's Revolving Credit
Commitment on a pro rata basis; and
(vii) any requested voluntary reduction that would result in a
prepayment of all or any part of any Revolving Credit Loan
or Revolving Credit Loans shall be subject to and
conditioned upon the Borrowers' compliance with Sections
5.4 and 5.6 of this Agreement.
3. SWING LINE LOANS
Subject to the terms and conditions of this Loan Agreement, PNC Bank
hereby agrees to make Swing Line Loans to the Borrowers under the Swing Line
Credit Facility.
3.1 Swing Line Credit Facility.
From the date hereof throughout the Swing Line Commitment Period, and
subject to the terms, conditions and other provisions of this Agreement, PNC
Bank agrees to make Swing Line Loans to the Borrowers from time to time in a
total amount not exceeding the lesser of the Swing Line Commitment or Ten
Million Dollars ($10,000,000) in amounts of $500,000 and whole integer multiples
of $500,000 in excess thereof. The Swing Line Credit Facility is established for
the administrative convenience of the Borrowers, the Agent and the Banks. During
the Swing Line Commitment Period the Borrowers may borrow and repay advances
under the Swing Line Credit Facility in whole or in part, and reborrow all in
accordance with the terms, conditions and other provisions of this Agreement.
The making of each Swing Line Loan shall be subject to the further provisions of
this Section 3.1, and shall be subject to all of the conditions of lending
stated in Section 7.2 being fulfilled at the time of each Swing Line Loan, and
provided further that each Swing Line Loan shall be on the terms and subject to
the conditions hereinafter stated.
3.1.1 Interest.
Swing Line Loans shall bear interest (calculated on the basis of
an assumed year of 365 or 366 days) from the date of each such Swing Line Loan
until repaid at an annual rate equal to the Base Rate minus 1/2%. After
maturity, whether by acceleration or scheduled maturity, until paid in full, or
when and so long as there shall exist any uncured Event of Default, Swing Line
Loans shall bear interest at the applicable Default Rate. Interest with respect
to the principal of a Swing Line Loan shall be due and payable to the Swing Line
Lender on the date the principal of that Swing Line Loan is due and payable, and
on the Expiration Date.
3.1.2 Principal.
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The Borrowers shall pay all outstanding and unpaid principal of
Swing Line Loans on the Expiration Date.
3.1.3 Swing Line Note.
The obligations of the Borrowers to repay Swing Line Loans shall
be evidenced by a promissory note (the "Swing Line Note") substantially in the
from of Exhibit 1.1(S) attached hereto.
3.1.4 Conditions for Swing Line Loans.
So long as no Event of Default or Unmatured Default shall have
occurred and be continuing, during the Swing Line Commitment Period, the
Borrowers may borrow, repay and reborrow under the Swing Line Credit Facility on
any Business Day, subject to the terms, conditions and other provisions of this
Agreement. The making of Swing Line Loans will be conditioned upon receipt by
the Swing Line Lender from the Borrowers of a Request for Swing Line Loan by
12:00 noon Pittsburgh time on the Business Day of the requested Swing Line Loan.
Notwithstanding the foregoing, the Swing Line Lender may, in its sole
discretion, accept an oral or written request made on behalf of the Borrowers by
an Authorized Officer by telephone, telex, facsimile or some other form of
written electronic communication, in which case the Swing Line Lender shall be
entitled to rely on any such oral or written request received by the Swing
Line Lender in good faith from anyone reasonably believed by the Swing Line
Lender to be an Authorized Officer. The Borrowers shall promptly confirm any
such communication by delivery of a Request for Swing Line Loan in the form of
Exhibit 3.1.4 upon request of the Swing Line Lender. Disbursements of, and
payments of principal with respect to Swing Line Loans may be evidenced by
notations of the Swing Line Lender or its electronic data processing equipment.
The aggregate amount of all disbursements of Swing Line Loans made and shown
on the Swing Line Lender's electronic data processing equipment, over all of
the payments of principal made by the Borrowers and recorded on the Swing
Line Lender's electronic data processing equipment shall be prima facie
evidence of the outstanding principal balance due under the Swing Line Note.
3.1.5. General Provisions Regarding Payments of Swing Line Loans.
3.1.5.1 Manner and Time of Payment. All payments of
principal, interest and fees hereunder and under the Swing Line Note by the
Borrowers shall be made without defense, setoff and counterclaim and in the
same days funds and delivered to PNC Bank not later than 11:00 a.m. (Pittsburgh,
PA time) on the due date therefor at its office located in Pittsburgh, PA;
funds received by PNC Bank after that time shall be deemed to have been paid by
the Borrowers on the next succeeding Business Day.
3.1.5.2 Borrowings to Repay Amounts Outstanding
Under the Swing Line of Credit. The Swing Line Lender shall, five (5) days after
an advance is made under the Swing Line of Credit, demand repayment of that
advance under the Swing Line of Credit, and each Bank shall make a Loan pursuant
to the Revolving Line of Credit in an amount equal to such Bank's Ratable Share
of the aggregate principal amount of that advance under the Swing Line of Credit
plus, if the Swing Line Lender so requests, accrued interest thereon, provided
that no Bank shall be obligated in any event to make loans pursuant to the
Revolving Line of Credit in excess of its Commitment. Loans made under the
Revolving Line of Credit made pursuant to the preceding sentence shall bear
interest at the Base Rate and shall be deemed to have been properly requested
in accordance with Section 2.5 without regard to any of the requirements of
that provision. The Swing Line Lender shall provide notice to the Banks
(which may be telephonic or written notice by letter, facsimile or telex)
that such Loans under the Revolving Line of Credit are to be made under this
Section 3.1.5.2 and of the apportionment among the Banks, and that Bank shall
be unconditionally obligated to fund its Ratable Share of such Loans under
the Revolving Line of Credit (whether or not the conditions specified in
Section 7 are then satisfied) by the time the Swing Line Lender so requests,
which shall not be earlier than 3:00 p.m. Pittsburgh time on the Banking
Day next succeeding the date that Bank receives such notice from the Swing Line
Lender.
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3.1.5.3 Payments on Business Days. Whenever any
payment to be made hereunder or under the Swing Line Facility shall be stated
to be due on a day that is not a Business Day, such payment shall be made on
the next succeeding Business Day (unless no further Business Day occurs in such
month, in which case payment shall be made on the next preceding Business Day)
and such extension of time shall be included in the computation of the payment
of interest hereunder or under the Swing Line Note.
3.1.6 Limitation.
The Borrowers may not request that the Swing Line Lender make any
Swing Line Loan if, after making such Swing Line Loan, (a) the total aggregate
principal amount of outstanding Swing Line Loans would exceed Ten Million
Dollars ($10,000,000.00) or (b) the total utilization of Revolving Loan
Commitments plus the Letters of Credit outstanding plus Swing Line Loans
outstanding and requested would exceed the Revolving Loan Commitments.
3.2 Use of Proceeds.
The principal of the Swing Line Loans shall be used by Borrowers
for general corporate and working capital purposes, and in accordance with
Section 6.1.10 [Use of Proceeds; Margin Stock; Section 20 Subsidiaries] and
Section 8.1.10 [Use of Proceeds].
4. INTEREST RATES
4.1 Interest Rate Options.
The Borrowers shall pay interest in respect of the outstanding unpaid
principal amount of the Revolving Credit Loans at the rate or rates per annum
selected by it from the Base Rate Option or Euro-Rate Option set forth below, it
being understood that, subject to the provisions of this Agreement, the
Borrowers may select different Interest Rate Options and different Interest
Periods to apply simultaneously to the Revolving Credit Loans comprising
different Borrowing Tranches and may convert to or renew one or more Interest
Rate Options with respect to all or any portion of the Loans comprising any
Borrowing Tranche, provided that there shall not be at any one time outstanding
more than seven (7) Borrowing Tranches in the aggregate among all of the
Revolving Credit Loans. Each Borrowing Tranche shall bear interest at the same
Interest Rate Option. If at any time the designated rate applicable to any Loan
made by any Bank exceeds such Bank's highest lawful rate, the rate of interest
on such Bank's Loan shall be limited to such Bank's highest lawful rate.
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4.1.1 Revolving Credit Interest Rate Options.
The Borrowers shall have the right to select from the following
Interest Rate Options applicable to the Revolving Credit Loans:
(i) Revolving Credit Base Rate Option: A fluctuating
rate per annum (computed on the basis of an assumed year of 365 or 366 days,
and actual days elapsed) equal to the Base Rate, such interest rate to change
automatically from time to time effective as of the effective date of each
change in the Base Rate; or
(ii) Revolving Credit Euro-Rate Option: A rate per annum
(computed on the basis of an assumed year of 360 days and actual days elapsed)
equal to the applicable Euro-Rate for the Interest Period properly selected for
the Revolving Credit Loan or Loans, plus the applicable Euro-Rate Margin
determined in accordance with the following table:
LEVEL I LEVEL II LEVEL III LEVEL IV LEVEL V LEVEL VI
Basis for If the ratio of If the ratio of If the ratio of If the ratio of If the ratio of If the ratio of the
Euro- the Borrowers' the Borrowers' the the Borrowers' the Borrowers' Borrowers' Total
Rate Total Total Borrowers' Total Total Consolidated
Margin Consolidated Consolidated Total Consolidated Consolidated Funded
Funded Funded Consolidated Funded Funded Indebtedness to
Indebtedness Indebtedness Funded Indebtedness to Indebtedness the Borrowers'
to the to the Indebtedness the Borrowers' to the Consolidated
Borrowers' Borrowers' to the Consolidated Borrowers' EBITDA is
Consolidated Consolidated Borrowers' EBITDA is Consolidated equal to or
EBITDA is EBITDA is Consolidated equal to or EBITDA is greater than 3.5*
less than 1.0 to equal to or EBITDA is greater than 2.0 equal to or to 1.0
1.0. greater than equal to or to 1.0 but less greater than
1.0 to 1.0 but greater than than 2.5 to 1.0 2.5 to 1.0 but
less than 1.5 to 1.5 to 1.0 but less than 3.5*
1.0 less than 2.0 to 1.0
to 1.0
Then the 50 Basis Points 62.5 Basis 75 Basis 87.5 Basis 100 Basis 112.5 Basis
Euro- Points Points Points Points Points
Rate
Margin is
*From and after January 1, 2000, this number will become 3.25.
4.2 Swing Line Loan Interest Rate.
The Borrowers shall pay interest in respect of the outstanding
unpaid principal amount of the Swing Line Loans outstanding from time to time at
a fluctuating rate per annum (computed on the basis of an assumed year of 365 or
366 days and actual days elapsed) equal to the Base Rate minus 1/2%, such
interest rate to change automatically from time to time effective as of the
effective date of each change in the Base Rate.
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4.3 Interest Periods.
At any time when the Borrowers shall select, convert to or renew a
Euro-Rate Option, the Borrowers shall notify the Agent thereof at least three
(3) Business Days prior to the effective date of such Euro-Rate Option by
delivering a Loan Request. The notice shall specify a Euro-Rate Interest period
(the "Interest Period") during which such Interest Rate Option shall apply, such
Interest Period to be (i) one, two, three or six Months, or (ii) twelve Months
if Borrowers select the Euro-Rate Option and a twelve Month Euro-Rate Option is
then available to the Banks for offering to the Borrowers. The Banks shall be
under no obligation to provide a twelve Month Euro-Rate Option if then
unavailable to the Banks. Notwithstanding the preceding sentence, the following
provisions shall apply to any selection of, renewal of, or conversion to a
Euro-Rate Option:
4.3.1 Amount of Borrowing Tranche.
Each Borrowing Tranche of Euro-Rate Loans shall be in whole
integer multiples of $100,000.00 and not less than $500,000.00;
4.3.2 Termination Before Expiration Date.
The Borrowers shall not select, convert to or renew an Interest
Period for any portion of the Loans that would end after the Expiration Date;
and
4.3.3 Renewals.
In the case of the renewal of a Euro-Rate Option at the end of an
Interest Period, the first day of the new Interest Period shall be the last day
of the preceding Interest Period, without duplication in payment of interest for
such day.
4.4 Interest After Default.
To the extent permitted by Law, upon the occurrence of an Event of
Default and until such time such Event of Default shall have been cured or
waived;
4.4.1 Letter of Credit Fees, Interest Rate.
The Letter of Credit Fees and the rate of interest for each Loan
otherwise applicable pursuant to Section 2.9.2 [Letter of Credit Fees] or
Section 4.1 [Interest Rate Options], respectively, shall be increased by 2.0%
per annum from the time such Obligation becomes due and payable and until it is
paid in full; and
4.4.2 Other Obligations.
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Each other Obligation hereunder if not paid when due shall bear
interest at a rate per annum equal to the sum of the rate of interest otherwise
applicable under the Revolving Credit Base Rate Option plus an additional 2% per
annum from the time such Obligation becomes due and payable and until it is paid
in full.
4.4.3 Acknowledgment.
The Borrowers acknowledge that the increase in rates referred to
in this Section 4.4.3 reflects, among other things, the fact that such Loans or
other amounts have become a substantially greater risk given their default
status and that the Banks are entitled to additional compensation for such risk;
and all such interest shall be payable by Borrowers upon demand by Agent.
4.5 Euro-Rate Unascertainable; Illegality; Increased Costs; Deposits
Not Available.
4.5.1 Unascertainable.
If the Agent determines (which determination shall be final and
conclusive) that, by reason of circumstances affecting the interbank eurodollar
market generally, deposits in dollars (in the applicable amounts) are not being
offered to banks in the interbank eurodollar market for the selected term, or
adequate means do not exist for ascertaining the Euro-Rate, then the Agent shall
give notice thereof to the Borrowers and the other Banks. Thereafter, until the
Agent notifies the Borrower and the other Banks that the circumstances giving
rise to such suspension no longer exist, (a) the availability of the Euro-Rate
Option shall be suspended, and (b) the interest rate for all Revolving Credit
Loans then bearing interest under the Euro-Rate Option shall be converted at the
expiration of the then current Euro-Rate Interest Period(s) to the Base Rate
Option.
4.5.2 Illegality; Increased Costs; Deposits Not Available.
If, after the date of this Agreement, the Agent shall determine (which
determination shall be final and conclusive) that any enactment, promulgation or
adoption of or any change in any applicable law, rule or regulation, or any
change in the interpretation or administration thereof by a governmental
authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by the Agent with any guideline, request
or directive (whether or not having the force of law) of any such authority,
central bank or comparable agency shall make it unlawful or impossible for the
Agent to make or maintain or fund loans under the Euro-Rate Option, the Agent
shall notify the Borrower and the other Banks. Upon receipt of such notice,
until the Agent notifies the Borrower and the other Banks that the circumstances
giving rise to such determination no longer apply, (a) the availability of the
Euro-Rate Option shall be suspended, and (b) the interest rate on all Revolving
Credit Loans then bearing interest under the Euro-Rate Option shall be converted
to the Base Rate Option either (i) on the last day of the then current Euro-Rate
Interest Period(s) if the Agent may lawfully continue to maintain Revolving
Credit Loans under the Euro-Rate Option to such day, or (ii) immediately if the
Agent may not lawfully continue to maintain Revolving Credit Loans under the
Euro-Rate Option.
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4.5.3 Agent's and Banks' Rights.
In the case of any event specified in Section 4.5.1 above, the
Agent shall promptly so notify the Banks and the Borrowers thereof, and in the
case of an event specified in Section 4.5.2 above, such Bank shall promptly so
notify the Agent and endorse a certificate to such notice as to the specific
circumstances of such notice, and the Agent shall promptly send copies of such
notice and certificate to the other Banks and the Borrower. Upon such date as
shall be specified in such notice (which shall not be earlier than the date such
notice is given), the obligation of (A) the Banks, in the case of such notice
given by the Agent, or (B) such Bank, in the case of such notice given by such
Bank, to allow the Borrowers to select, convert to or renew a Euro-Rate Option
shall be suspended until the Agent shall have later notified the Borrower, or
such Bank shall have later notified the Agent, of the Agent's or such
Bank's, as the case may be, determination that the circumstances giving rise
to such previous determination no longer exist. If at any time the Agent makes
a determination under Section 4.5.1 and the Borrowers have previously notified
the Agent of its selection of, conversion to or renewal of a Euro-Rate Option
and such Interest Rate Option has not yet gone into effect, such notification
shall be deemed to provide for selection of, conversion to or renewal of
the Base Rate Option otherwise available with respect to such Loans. If
any Bank notifies the Agent of a determination under Section 4.5.2, the
Borrowers shall, subject to the Borrowers' indemnification Obligations under
Section 5.6.2 [Indemnity], as to any Loan of the Bank to which a Euro-Rate
Option applies, on the date specified in such notice either convert such Loan
to the Base Rate Option otherwise available with respect to such Loan or
prepay such Loan in accordance with Section 5.4 [Voluntary Prepayments].
Absent due notice from the Borrowers of conversion or prepayment, such Loan
shall automatically be converted to the Base Rate Option otherwise available
with respect to such Loan upon such specified date.
4.6 Selection of Interest Rate Options.
If the Borrowers fail to select a new Interest Period to apply to any
Borrowing Tranche of Loans under the Euro-Rate Option at the expiration of an
existing Interest Period applicable to such Borrowing Tranche in accordance with
the provisions of Section 4.3 [Interest Periods], the Borrowers shall be deemed
to have converted such Borrowing Tranche to the Revolving Credit Base Rate
Option commencing upon the last day of the existing Interest Period.
5. PAYMENTS
5.1 Payments.
All payments and prepayments to be made in respect of principal,
interest, Commitment Fees, Letter of Credit Fees, Agent's Fee or other fees or
amounts due from the Borrowers hereunder shall be payable prior to 11:00 a.m.,
Pittsburgh time, on the date when due without presentment, demand, protest or
notice of any kind, all of which are hereby expressly waived by the Borrower,
and without set-off, counterclaim or other deduction of any nature, and an
action therefor shall immediately accrue. Such payments shall be made to the
Agent at the Principal Office for the ratable accounts of the Banks with respect
to the Loans in U.S. Dollars and in immediately available funds, and the Agent
shall promptly distribute such amounts to the Banks in immediately available
funds, provided that in the event payments are received by 11:00 a.m.,
Pittsburgh time, by the Agent with respect to the Loans and such payments are
not distributed to the Banks on the same day received by the Agent, the Agent
shall pay the Banks the Federal Funds Effective Rate with respect to the amount
of such payments for each day held by the Agent and not distributed to the
Banks. The Agent's and each Bank's statement of account, ledger or other
relevant record shall, in the absence of manifest error, be conclusive as the
statement of the amount of principal of and interest on the Loans and other
amounts owing under this Agreement and shall be deemed an "account stated."
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5.2 Pro Rata Treatment of Banks.
Each borrowing shall be allocated to each Bank according to its Ratable
Share, and each selection of, conversion to or renewal of any Interest Rate
Option and each payment or prepayment by the Borrowers with respect to
principal, interest, Commitment Fees, Letter of Credit Fees, or other fees
(except for the Agent's Fee) or amounts due from the Borrowers hereunder to the
Banks with respect to the Loans, shall (except as provided in Section 4.5.3
[Agent's and Bank's Rights] in the case of an event specified in Section 4.5
[Euro-Rate Unascertainable; Etc.], 5.4.2 [Replacement of a Bank] or 5.6
[Additional Compensation in Certain Circumstances]) be made in proportion to the
applicable Loans outstanding from each Bank and, if no such Loans are then
outstanding, in proportion to the Ratable Share of each Bank.
5.3 Interest Payment Dates.
Interest on Loans to which the Base Rate Option applies shall be due and
payable in arrears on the first Business Day of each October, January, April and
July after the date hereof and on the Expiration Date or upon acceleration of
the Notes. Interest on Loans to which the Euro-Rate Option applies shall be due
and payable on the last day of each Interest Period for those Loans and, if such
Interest Period is longer than three (3) Months, also on the 90th day of such
Interest Period, at 90 day intervals thereafter during such Interest Period, and
on the last day of such Interest Period. Interest on mandatory prepayments of
principal under Section 5.5 [Mandatory Prepayments] shall be due on the date
such mandatory prepayment is due. Interest on the principal amount of each Loan
or other monetary Obligation shall be due and payable on demand after such
principal amount or other monetary Obligation becomes due and payable (whether
on the stated maturity date, upon acceleration or otherwise).
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5.4 Voluntary Prepayments.
5.4.1 Right to Prepay.
The Borrowers shall have the right at their option from time to
time to prepay the Loans in whole or part, without premium or penalty (except as
provided in Section 5.4.2 below or in Section 5.6 [Additional Compensation in
Certain Circumstances]):
(i) at any time with respect to any Loan to which the
Base Rate Option applies so long as such payments are in an amount not less than
$500,000 and in integers of $500,000,
(ii) daily at any time with respect to any Swing Line Loan
so long as such payments are in an amount not less than $100,000 and in whole
integer multiples of $100,000,
(iii) on the last day of the applicable Interest Period
with respect to Loans to which a Euro-Rate Option applies so long as such
payments are in an amount not less than $5,000,000 and in whole integer
multiples of $500,000,
(iv) on the date specified in a notice by any Bank
pursuant to Section 4.5 [Euro-Rate Unascertainable, Etc.] with respect to any
Loan to which a Euro-Rate Option applies.
Whenever the Borrowers desire to prepay any part of the Loans not
bearing interest at the Base Rate, they shall provide a prepayment notice to the
Agent by 1:00 p.m. Pittsburgh, PA time, at least one (1) Business Day prior to
the date of prepayment of Loans setting forth the following information:
(x) the date, which shall be a Business Day, on which
the proposed prepayment is to be made;
(y) a statement indicating the application of the
prepayment between the Revolving Credit Loans and Swing Line Loans; and
(z) the total principal amount of such prepayment.
All prepayment notices shall be irrevocable. The principal amount
of the Loans for which a prepayment notice is given, together with interest on
such principal amount except with respect to Loans to which the Base Rate Option
applies, shall be due and payable on the date specified in such prepayment
notice as the date on which the proposed prepayment is to be made. Except as
provided in Section 4.5.3 [Agent's and Bank's Rights], if the Borrowers prepay a
Loan but fail to specify the applicable Borrowing Tranche which the Borrowers
are prepaying, the prepayment shall be applied (i) first to Swing Line Loans,
then to Revolving Credit Loans; and (ii) after giving effect to the allocations
in clause (i) above and in the preceding sentence, first to Loans to which the
Base Rate Option applies, then to Loans to which the Euro-Rate Option applies.
Any prepayment hereunder shall be subject to the Borrowers' Obligation to
indemnify the Banks under Section 5.6.2 [Indemnity].
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5.4.2 Replacement of a Bank.
In the event any Bank (i) gives notice under Section 4.5
[Euro-Rate Unascertainable, Etc.] or Section 5.6.1 [Increased Costs, Etc.], (ii)
does not fund Revolving Credit Loans because the making of such Loans would
contravene any Law applicable to such Bank, (iii) does not approve any action as
to which consent of the Required Banks is requested by the Borrowers and
obtained hereunder, or (iv) becomes subject to the control of an Official Body
(other than normal and customary supervision), then the Borrowers shall have the
right at their option, with the consent of the Agent, which shall not be
unreasonably withheld, to prepay the Loans of such Bank in whole, together with
all interest accrued thereon, and terminate such Bank's Commitment within ninety
(90) days after (w) receipt of such Bank's notice under Section 4.5 [Euro-Rate
Unascertainable, Etc.] or 5.6.1 [Increased Costs, Etc.], (x) the date such Bank
has failed to fund Revolving Credit Loans because the making of such Loans
would contravene Law applicable to such Bank, (y) the date of
obtaining the consent which such Bank has not approved, or (z) the date such
Bank became subject to the control of an Official Body, as applicable; provided
that the Borrowers shall also pay to such Bank at the time of such prepayment
any amounts required under Section 5.6 [Additional Compensation in Certain
Circumstances] and any accrued interest due on such amount and any related fees;
provided, however, that the Commitment of such Bank shall be provided by one or
more of the remaining Banks or a replacement bank acceptable to the Agent;
provided, further, the remaining Banks shall have no obligation hereunder to
increase their Commitments. Notwithstanding the foregoing, the Agent may only be
replaced subject to the requirements of Section 10.14 [Successor Agent] and
provided that all Letters of Credit have expired or been terminated or replaced,
and all Swing Line Loans and related accrued but unpaid interest have been paid
in full.
5.4.3 Change of Lending Office.
Each Bank agrees that upon the occurrence of any event giving
rise to increased costs or other special payments under Section 5.6.1 [Increased
Costs, Etc.] with respect to such Bank, it will if requested by the Borrower,
use reasonable efforts (subject to overall policy considerations of such Bank)
to designate another lending office for any Loans or Letters of Credit affected
by such event, provided that such designation is made on such terms that such
Bank and its lending office suffer no economic, legal or regulatory
disadvantage, with the object of avoiding the consequence of the event giving
rise to the operation of such Section. Nothing is this Section 5.4.3 shall
affect or postpone any of the Obligations of the Borrowers or any other Loan
Party or the rights of the Agent or any Bank provided in this Agreement.
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5.5 Required Prepayments.
5.5.1 Sale of Assets.
Within five (5) Business Days of any sale of assets authorized by
Section 8.2.6 [Disposition of Assets or Subsidiaries] and which causes the
aggregate amount of such sales to be equal to $10,000,000 or more, the Banks may
reasonably require the Borrowers to make a mandatory prepayment of principal on
the Revolving Credit Loans equal to no more than the after-tax proceeds of such
sale (as estimated in good faith by the Borrower), together with accrued
interest on such principal amount. All prepayments pursuant to this Section
5.5.2 shall be applied to payment in full of the principal amount of the
Revolving Credit Loans by application to the unpaid installments of principal in
the inverse order of scheduled maturities.
5.5.2 Application Among Interest Rate Options.
All prepayments required pursuant to this Section 5.5 shall first
be applied among the Interest Rate Options to the principal amount of the Loans
subject to the Base Rate Option, then to Loans subject to a Euro-Rate Option. In
accordance with Section 5.6.2 [Indemnity], the Borrowers shall indemnify the
Banks for any loss or expense, including loss of margin, incurred with respect
to any such prepayments applied against Loans subject to a Euro-Rate Option on
any day other than the last day of the applicable Interest Period.
5.6 Additional Compensation in Certain Circumstances.
5.6.1 Increased Costs or Reduced Return Resulting from Taxes,
Reserves, Capital Adequacy Requirements, Expenses, Etc.
If any Law, guideline or interpretation or any change in any Law,
guideline or interpretation or application thereof by any Official Body charged
with the interpretation or administration thereof or compliance with any request
or directive (whether or not having the force of Law) of any central bank or
other Official Body:
(i) subjects any Bank to any tax or changes the basis
of taxation with respect to this Agreement, the Notes, the Loans or payments by
the Borrowers of principal, interest, Fees, or other amounts due from the
Borrowers hereunder or under the Notes (except for taxes on the overall net
income of such Bank),
(ii) imposes, modifies or deems applicable any reserve,
special deposit or similar requirement against credits or commitments to extend
credit extended by, or assets (funded or contingent) of, deposits with or for
the account of, or other acquisitions of funds by, any Bank, or
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(iii) imposes, modifies or deems applicable any capital
adequacy or similar requirement (A) against assets (funded or contingent) of, or
letters of credit, other credits or commitments to extend credit extended by,
any Bank, or (B) otherwise applicable to the obligations of any Bank under this
Agreement; and
(iv) the result of any of the foregoing is to increase
the cost to, reduce the income receivable by, or impose any expense (including
loss of margin) upon any Bank with respect to this Agreement, the Notes or the
making, maintenance or funding of any part of the Loans (or, in the case of any
capital adequacy or similar requirement, to have the effect of reducing the
rate of return on any Bank's capital, taking into consideration such Bank's
customary policies with respect to capital adequacy) by an amount which such
Bank in its sole discretion deems to be material, such Bank shall from time to
time notify the Borrowers and the Agent of the amount determined in good faith
(using any averaging and attribution methods employed in good faith) by such
Bank to be necessary to compensate such Bank for such increase in cost,
reduction of income, additional expense or reduced rate of return. Such notice
shall set forth in reasonable detail the basis for such determination, and
shall be conclusive and binding absent manifest error. Such amount shall be due
and payable by the Borrowers to the Agent for payment to such Bank ten (10)
Business Days after such notice is given.
5.6.2 Indemnity.
In addition to the compensation required by Section 5.6.1
[Increased Costs, Etc.], the Borrowers shall indemnify each Bank against all
liabilities, losses or expenses (including loss of margin, any loss or expense
incurred in liquidating or employing deposits from third parties and any loss or
expense incurred in connection with funds acquired by a Bank to fund or maintain
Loans subject to a Euro-Rate Option) which such Bank sustains or incurs as a
consequence of any
(i) payment, prepayment, conversion or renewal of any
Loan to which a Euro-Rate Option applies on a day other than the last day of the
corresponding Interest Period (whether or not such payment or prepayment
is mandatory, voluntary or automatic and whether or not such payment or
prepayment is then due),
(ii) attempt by the Borrowers to revoke (expressly, by
later inconsistent notices or otherwise) in whole or part any Loan Requests
under Section 2.5 [Revolving Credit Loan Requests] or Section 4.3 [Interest
Periods] or notice relating to prepayments under Section 5.4 [Voluntary
Prepayments], or
(iii) default by the Borrowers in the performance or
observance of any covenant or condition contained in this Agreement or any
other Loan Document, including any failure of the Borrowers to pay when due
(by acceleration or otherwise) any principal, interest, Commitment Fee or
any other amount due hereunder.
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If any Bank sustains or incurs any such loss or expense, it shall
from time to time notify the Borrowers of the amount determined in good faith by
such Bank (which determination may include such assumptions, allocations of
costs and expenses and averaging or attribution methods as such Bank shall deem
reasonable) to be necessary to indemnify such Bank for such loss or expense.
Such notice shall set forth in reasonable detail the basis for such
determination. Such amount shall be due and payable by the Borrowers to such
Bank ten (10) Business Days after such notice is given.
6. REPRESENTATIONS AND WARRANTIES
6.1 Representations and Warranties.
The Loan Parties, jointly and severally, represent and warrant to the
Agent and each of the Banks as follows:
6.1.1 Organization and Qualification.
Each Loan Party and each Subsidiary of each Loan Party is a
corporation, partnership or limited liability company duly organized, validly
existing and in good standing under the laws of its jurisdiction of
organization. Each Loan Party and each Subsidiary of each Loan Party has the
lawful power to own or lease its properties and to engage in the business it
presently conducts or proposes to conduct. Each Loan Party and each Subsidiary
of each Loan Party is duly licensed or qualified and in good standing in each
jurisdiction listed on Schedule 6.1.1 and in all other jurisdictions where the
property owned or leased by it or the nature of the business transacted by it or
both makes such licensing or qualification necessary.
6.1.2 Capitalization and Ownership.
The authorized capital stock of each Borrower, and the number of
each Borrower's shares which are issued and outstanding (referred to herein as
the "Shares") are issued and outstanding and are owned as indicated on Schedule
6.1.2. All of the Shares have been validly issued and are fully paid and
nonassessable. There are no options, warrants or other rights outstanding to
purchase any such shares except as indicated on Schedule 6.1.2.
6.1.3 Subsidiaries.
Schedule 6.1.3 states the name of each of the Borrowers'
Subsidiaries, its jurisdiction of incorporation, its authorized capital stock,
the issued and outstanding shares (referred to herein as the "Subsidiary
Shares") and the owners thereof. The Borrowers and each Subsidiary of the
Borrowers has good and valid title to all of the Subsidiary Shares, it purports
to own, free and clear in each case of any Lien. All Subsidiary Shares, have
been validly issued, and all Subsidiary Shares are fully paid and nonassessable.
There are no options, warrants or other rights outstanding to purchase any such
Subsidiary Shares, except as indicated on Schedule 6.1.3.
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6.1.4 Power and Authority.
Each Loan Party has full power to enter into, execute, deliver
and carry out this Agreement and the other Loan Documents to which it is a
party, to incur the Indebtedness contemplated by the Loan Documents and to
perform its Obligations under the Loan Documents to which it is a party, and all
such actions have been duly authorized by all necessary proceedings on its part.
6.1.5 Validity and Binding Effect.
This Agreement has been duly and validly executed and delivered
by each Loan Party, and each other Loan Document which any Loan Party is
required to execute and deliver on or after the date hereof will have been duly
executed and delivered by such Loan Party on the required date of delivery of
such Loan Document. This Agreement and each other Loan Document constitutes, or
will constitute, legal, valid and binding obligations of each Loan Party which
is or will be a party thereto on and after its date of delivery thereof,
enforceable against such Loan Party in accordance with its terms, except to the
extent that enforceability of any of such Loan Document may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforceability of creditors' rights generally or limiting the
right of specific performance.
6.1.6 No Conflict.
Neither the execution and delivery of this Agreement or the other
Loan Documents by any Loan Party nor the consummation of the transactions herein
or therein contemplated or compliance with the terms and provisions hereof or
thereof by any of them will conflict with, constitute a default under or result
in any breach of (i) the terms and conditions of the certificate of
incorporation, articles of incorporation, bylaws, or other organizational
documents of any Loan Party or (ii) any Law or any material agreement or
instrument or order, writ, judgment, injunction or decree to which any Loan
Party or any of its Subsidiaries is a party or by which it or any of its
Subsidiaries is bound or to which it is subject, or result in the creation or
enforcement of any Lien, charge or encumbrance whatsoever upon any property (now
or hereafter acquired) of any Loan Party or any of its Subsidiaries.
6.1.7 Litigation.
There are no actions, suits, proceedings or investigations
pending or, to the knowledge of any Loan Party, threatened against such Loan
Party or any Subsidiary of such Loan Party at law or equity before any Official
Body which individually or in the aggregate may result in any Material Adverse
Change. None of the Loan Parties or any Subsidiaries of any Loan Party is in
violation of any order, writ, injunction or any decree of any Official Body
which may result in any Material Adverse Change.
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6.1.8 Title to Properties.
The Property owned or leased by each Loan Party and each
Subsidiary of each Loan Party (other than Hoosier Park, LP and Xxxxxxxx Park,
Inc.) is described on Schedule 6.1.8. Each Loan Party and each Subsidiary of
each Loan Party has good and marketable title to or valid leasehold interest in
all properties, assets and other rights which it purports to own or lease or
which are reflected as owned or leased on its books and records, free and clear
of all Liens and encumbrances except Permitted Liens, and subject to the terms
and conditions of the applicable leases. All leases of property are in full
force and effect without the necessity for any consent which has not previously
been obtained upon consummation of the transactions contemplated hereby. The
Borrower shall provide the Agent with an updated version of Schedule 6.1.8 on
each anniversary of the Closing Date.
6.1.9 Financial Statements.
(i) Historical Statements. The Borrowers have delivered
to the Agent copies of its audited consolidated year-end financial statements
for and as of the end of the Borrowers' fiscal years ended December 31, 1997
(the "Annual Statements"). In addition, the Borrowers have delivered to the
Agent copies of its unaudited consolidated interim financial statements for the
fiscal year to date and as of the end of the fiscal quarter ended March 31, 1998
(the "Interim Statements") (the Annua and Interim Statements being
collectively referred to as the "Historical Statements"). The Historical
Statements were compiled from the books and records maintained by the Borrowers'
management, are correct and complete and fairly represent the consolidated
financial condition of the Borrowers and their respective Subsidiaries as of
their dates and the results of operations for the fiscal periods then ended and
have been prepared in accordance with GAAP consistently applied, subject
(in the case of the Interim Statements) to normal year-end audit adjustments.
(ii) Accuracy of Financial Statements. Neither the
Borrowers nor any Subsidiary of the Borrowers has any liabilities, contingent
or otherwise, or forward or long-term commitments that are required to be
disclosed or in the notes thereto and are not so disclosed in the Historical
Statements or in the notes thereto, and except as disclosed therein there
are no unrealized or anticipated losses from any commitments of the Borrowers
or any Subsidiary of the Borrowers which may cause a Material Adverse Change.
Since December 31, 1997, no Material Adverse Change has occurred.
6.1.10 Use of Proceeds; Margin Stock; Section 20 Subsidiaries.
6.1.10.1 General.
The Loan Parties intend to use the proceeds of the Loans
in accordance with Sections 2.8 [Use of Proceeds], 3.2 and 8.1.10 [Use of
Proceeds].
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6.1.10.2 Margin Stock.
None of the Loan Parties or any Subsidiaries of any Loan
Party engages or intends to engage principally, or as one of its important
activities, in the business of extending credit for the purpose, immediately,
incidentally or ultimately, of purchasing or carrying margin stock (within
the meaning of Regulation U). No part of the proceeds of any Loan has been or
will be used, immediately, incidentally or ultimately, to purchase or carry any
margin stock or to extend credit to others for the purpose of purchasing or
carrying any margin stock or to refund Indebtedness originally incurred for such
purpose, or for any purpose which entails a violation of or which is
inconsistent with the provisions of the regulations of the Board of Governors
of the Federal Reserve System. None of the Loan Parties or any Subsidiary of
any Loan Party holds or intends to hold margin stock in such amounts that
more than 25% of the reasonable value of the assets of any Loan Party or
Subsidiary of any Loan Party are or will be represented by margin stock.
6.1.10.3 Section 20 Subsidiaries.
The Loan Parties do not intend to use and shall not use
any portion of the proceeds of the Loans, directly or indirectly to
purchase during the underwriting period, or for 30 days thereafter,
Ineligible Securities being underwritten by a Section 20 subsidiary.
6.1.11 Taxes.
All federal, state, local and other tax returns required to have
been filed with respect to each Loan Party and each Subsidiary of each Loan
Party have been filed, and payment or adequate provision has been made for the
payment of all taxes, fees, assessments and other governmental charges which
have or may become due pursuant to said returns or to assessments received,
except to the extent that such taxes, fees, assessments and other charges are
being contested in good faith by appropriate proceedings diligently conducted
and for which such reserves or other appropriate provisions, if any, as shall be
required by GAAP shall have been made. There are no agreements or waivers
extending the statutory period of limitations applicable to any federal income
tax return of any Loan Party or Subsidiary of any Loan Party for any period
except as set forth on Schedule 6.1.11.
6.1.12 Consents and Approvals.
No consent, approval, exemption, order or authorization of, or a
registration or filing with, any Official Body or any other Person is required
by any Law or any agreement in connection with the execution, delivery and
carrying out of this Agreement and the other Loan Documents by any Loan Party,
except as listed on Schedule 6.1.12, all of which shall have been obtained or
made on or prior to the Closing Date except as otherwise indicated on Schedule
6.1.12.
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6.1.13 No Event of Default; Compliance with Instruments.
No event has occurred and is continuing and no condition exists
or will exist after giving effect to the borrowings or other extensions of
credit to be made on the Closing Date under or pursuant to the Loan Documents
which constitutes an Event of Default or Unmatured Default. None of the Loan
Parties or any Subsidiaries of any Loan Party is in violation of (i) any term of
its certificate of incorporation, bylaws, certificate of limited partnership,
partnership agreement, certificate of formation, limited liability company
agreement or other organizational documents or (ii) any material agreement or
instrument to which it is a party or by which it or any of its properties may be
subject or bound where such violation would constitute a Material Adverse
Change.
6.1.14 Patents, Trademarks, Copyrights, Licenses, Etc.
Each Loan Party and each Subsidiary (other than Hoosier Park, LP
and Xxxxxxxx Park, Inc.) of each Loan Party owns or possesses all the material
patents, trademarks, service marks, trade names, copyrights, licenses,
registrations, franchises, permits and rights necessary to own and operate its
properties and to carry on its business as presently conducted and planned to be
conducted by such Loan Party or Subsidiary, without known possible, alleged or
actual conflict with the rights of others. All material patents, trademarks,
service marks, trade names, copyrights, licenses related to conducting the
Borrowers' primary business, registrations, franchises and permits of each Loan
Party and each Subsidiary of each Loan Party are listed and described on
Schedule 6.1.14.
6.1.15 Insurance.
Schedule 6.1.15 lists all insurance policies and other material
bonds to which any Loan Party or Subsidiary of any Loan Party is a party, all of
which are valid and in full force and effect. No notice has been given or claim
made and no grounds exist to cancel or avoid any of such policies or material
bonds or to reduce the coverage provided thereby. Such policies and material
bonds provide adequate coverage from reputable and financially sound insurers in
amounts sufficient to insure the assets and risks of each Loan Party and each
Subsidiary of each Loan Party in accordance with prudent business practice in
the industry of the Loan Parties and their Subsidiaries.
6.1.16 Compliance with Laws.
The Loan Parties and their Subsidiaries are in compliance in all
material respects with all applicable Laws (other than Environmental Laws which
are specifically addressed in Section 6.1.21 [Environmental Matters] in all
jurisdictions in which any Loan Party or Subsidiary of any Loan Party is
presently or will be doing business except where the failure to do so would not
constitute a Material Adverse Change.
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6.1.17 Material Contracts; Burdensome Restrictions.
Schedule 6.1.17 lists all contracts equal to $100,000 or more,
the breach of which could result in a Material Adverse Change, relating to the
business operations of each Loan Party and each Subsidiary (except for Hoosier
Park, LP and Xxxxxxxx Park, Inc.) of any Loan Party, including all employee
benefit plans and any Labor Contracts. All such material contracts of the
Borrowers are valid, binding and enforceable upon such Loan Party or Subsidiary
and each of the other parties thereto in accordance with their respective terms,
and there is no default thereunder, to the Loan Parties' knowledge, with respect
to parties other than such Loan Party or Subsidiary. None of the Loan Parties or
their Subsidiaries is bound by any contractual obligation, or subject to any
restriction in any organization document, or any requirement of Law which could
result in a Material Adverse Change.
6.1.18 Investment Companies; Regulated Entities.
None of the Loan Parties or any Subsidiaries of any Loan Party is
an "investment company" registered or required to be registered under the
Investment Company Act of 1940 or under the "control" of an "investment company"
as such terms are defined in the Investment Company Act of 1940 and shall not
become such an "investment company" or under such "control." None of the Loan
Parties or any Subsidiaries of any Loan Party is subject to any other Federal or
state statute or regulation limiting its ability to incur Indebtedness for
borrowed money.
6.1.19 Plans and Benefit Arrangements.
Except as set forth on Schedule 6.1.19:
(i) The Borrowers and each other member of the ERISA
Group are in compliance in all material respects with any applicable provisions
of ERISA with respect to all Benefit Arrangements, Plans and Multiemployer
Plans. There has been no Prohibited Transaction with respect to any Benefit
Arrangement or any Plan or, to the best knowledge of the Borrower, with
respect to any Multiemployer Plan or Multiple Employer Plan, which could result
in any material liability of the Borrowers or any other member of the ERISA
Group. The Borrowers and all other members of the ERISA Group have made when due
any and all payments required to be made under any agreement relating to a
Multiemployer Plan or a Multiple Employer Plan or any Law pertaining thereto.
With respect to each Plan and Multiemployer Plan, the Borrowers and each other
member of the ERISA Group (i) have fulfilled in all material respects their
obligations under the minimum funding standards of ERISA, (ii) have not incurre
any liability to the PBGC, and (iii) have not had asserted against them any
penalty for failure to fulfill the minimum funding requirements of ERISA.
(ii) To the best of the Borrowers' knowledge, each
Multiemployer Plan and Multiple Employer Plan is able to pay benefits thereunder
when due.
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(iii) Neither the Borrowers nor any other member of the
ERISA Group has instituted or intends to institute proceedings to terminate any
Plan.
(iv) No event requiring notice to the PBGC under Section
302(f)(4)(A) of ERISA has occurred or is reasonably expected to occur with
respect to any Plan, and no amendment with respect to which security is required
under Section 307 of ERISA has been made or is reasonably expected to be made to
any Plan.
(v) Neither the Borrowers nor any other member of the
ERISA Group has incurred or reasonably expects to incur any material withdrawal
liability under ERISA to any Multiemployer Plan or Multiple Employer Plan.
Neither the Borrowers nor any other member of the ERISA Group has been notified
by any Multiemployer Plan or Multiple Employer Plan that such Multiemployer
Plan or Multiple Employer Plan has been terminated within the meaning of Title
IV of ERISA and, to the best knowledge of the Borrower, no Multiemployer Plan
or Multiple Employer Plan is reasonably expected to be reorganized or
terminated, within the meaning of Title IV of ERISA.
(vi) To the extent that any Benefit Arrangement is
insured, the Borrowers and all other members of the ERISA Group have paid
when due all premiums required to be paid for all periods through the Closing
Date. To the extent that any Benefit Arrangement is funded other than with
insurance, the Borrowers and all other members of the ERISA Group have made
when due all contributions required to be paid for all periods through the
Closing Date.
(vii) All Plans, Benefit Arrangements and Multiemployer
Plans have been administered in accordance with their terms and applicable Law.
6.1.20 Employment Matters.
Each of the Loan Parties and each of their Subsidiaries is in
compliance with any Labor Contracts to which it is a party and all applicable
federal, state and local labor and employment Laws including those related to
equal employment opportunity and affirmative action, labor relations, minimum
wage, overtime, child labor, medical insurance continuation, worker adjustment
and relocation notices, immigration controls and worker and unemployment
compensation, where the failure to comply would constitute a Material Adverse
Change. There are no outstanding grievances, arbitration awards or appeals
therefrom arising out of the Labor Contracts or current or threatened strikes,
picketing, handbilling or other work stoppages or slowdowns at facilities of any
of the Loan Parties or any of their Subsidiaries which in any case would
constitute a Material Adverse Change.
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6.1.21 Environmental Matters.
Except as disclosed on Schedule 6.1.21:
(i) None of the Loan Parties or any Subsidiaries of any
Loan Party has received any Environmental Complaint from any Official Body or
private Person alleging that such Loan Party or Subsidiary or any prior owne
of any of the Property is a potentially responsible party under the
Comprehensive Environmental Response, Cleanup and Liability Act, 42 U.S.C. ss.
9601, et seq., and none of the Loan Parties has any reason to believe
that such an Environmental Complaint might be received. There are no pending
or, to any Loan Party's knowledge, threatened Environmental Complaints relating
to any Loan Party or Subsidiary of any Loan Party or, to any Loan Party's
knowledge, any prior owner of any of the Property pertaining to, or arising
out of, any Environmental Conditions.
(ii) There are no circumstances at, on or under any of
the Property that constitute a breach of or non-compliance with any of the
Environmental Laws, and there are no past or present Environmental Conditions
at, on or under any of the Property or, to any Loan Party's knowledge, at, on
or under adjacent property, that prevent compliance with the Environmental Laws
at any of the Property.
(iii) Neither any of the Property nor any structures,
improvements, equipment, fixtures, activities or facilities thereon or
thereunder contain or use Regulated Substances except in compliance with
Environmental Laws. There are no processes, facilities, operations, equipment
or other activities at, on or under any of the Property, or, to any Loan Party's
knowledge, at, on or under adjacent property, that currently result in the
release or threatened release of Regulated Substances onto any of the Property,
except to the extent that such releases or threatened releases are not a breach
of or otherwise not a violation of the Environmental Laws.
(iv) There are no aboveground storage tanks, underground
storage tanks or underground piping associated with such tanks, used for the
management of Regulated Substances at, on or under any of the Property that (a
do not have, to the extent required by Environmental Laws, a full operational
secondary containment system in place, and (b) are not otherwise in compliance
with all Environmental Laws. There are no abandoned underground storage
tanks or underground piping associated with such tanks, previously used
for the management of Regulated Substances at, on or under any of the Property
that have not either been closed in place in accordance with Environmental Laws
or removed in compliance with all applicable Environmental Laws and no
contamination associated with the use of such tanks exists on any of the
Property that is not in compliance with Environmental Laws.
(v) Each Loan Party and each Subsidiary of any Loan
Party has all material permits, licenses, authorizations, plans and approvals
necessary under the Environmental Laws for the conduct of the business of such
Loan Party or Subsidiary as presently conducted. Each Loan Party and each
Subsidiary of any Loan Party has submitted all material notices, reports
and other filings required by the Environmental Laws to be submitted to an
Official Body which pertain to past and current operations on any of the
Property.
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(vi) All past and present on-site generation, storage,
processing, treatment, recycling, reclamation, disposal or other use or
management of Regulated Substances at, on, or under any of the Property and all
off-site transportation, storage, processing, treatment, recycling, reclamation
disposal or other use or management of Regulated Substances have been done
in accordance with the Environmental Laws.
(vii) The Borrowers have obtained Phase I Environmental
audits with respect to all commercial properties owned by the Borrower with the
exception of 000 Xxxxxxx Xxxxxx. The Borrowers' representations with respect
to the commercial properties as stated in this section are based on such
Phase I Environmental audits.
6.1.22 Senior Debt Status.
The Obligations of each Loan Party under this Agreement, the
Notes and each of the other Loan Documents to which it is a party do rank and
will rank at least pari passu in priority of payment with all other Indebtedness
of such Loan Party except Indebtedness of such Loan Party to the extent secured
by Permitted Liens. There is no Lien upon or with respect to any of the
properties or income of any Loan Party or Subsidiary of any Loan Party which
secures indebtedness or other obligations of any Person except for Permitted
Liens.
6.1.23 Employee Benefit Plans.
As of the date hereof the Borrowers do maintain a Plan in
compliance in all material respects with all applicable laws and regulations.
Neither a "reportable event" nor a "prohibited transaction" has occurred under,
nor has there occurred any complete or partial withdrawal from, nor has there
occurred the appointment of a trustee to administer any Plan maintained for
employees of any of the Borrowers or any Affiliate, all within the meanings
ascribed by ERISA.
6.1.24 Full Disclosure.
Neither this Agreement nor any other Loan Document, nor any
certificate, statement, agreement or other documents furnished to the Agent or
any Bank in connection herewith or therewith, contains any untrue statement of a
material fact or omits to state a material fact necessary in order to make the
statements contained herein and therein, in light of the circumstances under
which they were made, not misleading. There is no fact known to any Loan Party
which materially adversely affects the business, property, assets, financial
condition, results of operations or prospects of any Loan Party or Subsidiary of
any Loan Party which has not been set forth in this Agreement or in the
certificates, statements, agreements or other documents furnished in writing to
the Agent and the Banks prior to or at the date hereof in connection with the
transactions contemplated hereby.
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6.1.25 Year 2000.
The Borrowers have reviewed the areas within their business and
operations which could be adversely affected by, and have developed or are
developing a program to address on a timely basis, the risk that certain
computer applications used by the Borrowers (or any of their respective material
suppliers, customers or vendors) may be unable to recognize and perform properly
date-sensitive functions involving dates prior to and after December 31, 1999
(the "Year 2000 Problem"). The Year 2000 Problem should not result and is not
reasonably expected to result in any material adverse effect on the business,
properties, assets, financial condition, results of operations or prospects of
the Borrowers, or the ability of any of the Borrowers to duly and punctually pay
or perform their obligations hereunder and under other Loan Documents.
6.2 Updates to Schedules.
Should any of the information or disclosures provided on any of the
Schedules attached hereto become outdated or incorrect in any material respect,
the Borrowers shall promptly provide the Agent in writing with such revisions or
updates to such Schedule as may be necessary or appropriate to update or correct
same; provided, however, that no Schedule shall be deemed to have been amended,
modified or superseded by any such correction or update, nor shall any breach of
warranty or representation resulting from the inaccuracy or incompleteness of
any such Schedule be deemed to have been cured thereby, unless and until the
Required Banks, in their sole and absolute discretion, shall have accepted in
writing such revisions or updates to such Schedule.
7. CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT.
The obligation of each Bank to make Loans and of the Agent to issue
Letters of Credit hereunder is subject to the performance by each of the Loan
Parties of its Obligations to be performed hereunder at or prior to the making
of any such Loans or issuance of such Letters of Credit and to the satisfaction
of the following further conditions:
7.1 First Loans and Letters of Credit.
On the Closing Date:
7.1.1 Officer's Certificate.
The representations and warranties of each of the Loan Parties
contained in Section 6 and in each of the other Loan Documents shall be true and
accurate on and as of the Closing Date with the same effect as though such
representations and warranties had been made on and as of such date (except
representations and warranties which relate solely to an earlier date or time,
which representations and warranties shall be true and correct on and as of the
specific dates or times referred to therein), and each of the Loan Parties shall
have performed and complied with all cove nants and conditions hereof and
thereof, no Event of Default or Unmatured Default shall have occurred and be
continuing or shall exist; and there shall be delivered to the Agent for the
benefit of each Bank a certificate of each of the Loan Parties, dated the
Closing Date and signed by the Chief Executive Officer, President or Chief
Financial Officer of each of the Loan Parties, to each such effect.
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7.1.2 Secretary's Certificate.
There shall be delivered to the Agent for the benefit of each
Bank a certificate dated the Closing Date and signed by the Secretary or an
Assistant Secretary of each of the Loan Parties, certifying as appropriate as
to:
(i) all action taken by each Loan Party in connection
with this Agreement and the other Loan Documents;
(ii) the names of the officer or officers authorized to
sign this Agreement and the other Loan Documents and the true signatures of such
officer or officers and specifying the Authorized Officers permitted to act on
behalf of each Loan Party for purposes of this Agreement and the true signatures
of such officers, on which the Agent and each Bank may conclusively rely; and
(iii) copies of its organizational documents, including
its certificate of incorporation, bylaws, certificate of limited partnership
partnership agreement, certificate of formation, and limited liability company
agreement as in effect on the Closing Date certified by the appropriate state
official where such documents are filed in a state office together with
certificates from the appropriate state officials as to the continued existence
and good standing of each Loan Party in each state where organized or
qualified to do business and a bring-down certificate by facsimile dated the
Closing Date.
7.1.3 Delivery of Loan Documents.
The Intercompany Subordination Agreement and the Indemnity shall
have been duly executed and delivered to the Agent for the benefit of the Banks.
7.1.4 Opinion of Counsel.
There shall be delivered to the Agent for the benefit of each
Bank a written opinion of Xxxxx, Xxxxxxx & Xxxxx, counsel for the Loan Parties
(who may rely on the opinions of such other counsel as may be acceptable to the
Agent), dated the Closing Date and in form and substance satisfactory to the
Agent and its counsel:
(i) as to the matters set forth in Exhibit 7.1.4; and
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(ii) as to such other matters incident to the trans-
actions contemplated herein as the Agent may reasonably request.
7.1.5 Legal Details.
All legal details and proceedings in connection with the
transactions contemplated by this Agreement and the other Loan Documents shall
be in form and substance satisfactory to the Agent and counsel for the Agent,
and the Agent shall have received all such other counterpart originals or
certified or other copies of such documents and proceedings in connection with
such transactions, in form and substance satisfactory to the Agent and said
counsel, as the Agent or said counsel may reasonably request.
7.1.6 Payment of Fees.
The Borrowers shall have paid or caused to be paid to the Agent
for itself and for the account of the Banks to the extent not previously paid
all commitment and other fees accrued through the Closing Date and the costs and
expenses for which the Agent and the Banks are entitled to be reimbursed.
7.1.7 Consents.
All material consents required to effectuate the transactions
contemplated hereby as set forth on Schedule 6.1.12 shall have been obtained.
7.1.8 Officer's Certificate Regarding MACs.
Since December 31, 1997, no Material Adverse Change shall have
occurred; prior to the Closing Date, there shall have been no material change in
the management of any Loan Party or Subsidiary of any Loan Party; and there
shall have been delivered to the Agent for the benefit of each Bank a
certificate dated the Closing Date and signed by the Chief Executive Officer,
President or Chief Financial Officer of each Loan Party to each such effect.
7.1.9 No Violation of Laws.
The making of the Loans and the issuance of the Letters of Credit
shall not contravene any Law applicable to any Loan Party or any of the Banks.
7.1.10 No Actions or Proceedings.
No action, proceeding, investigation, regulation or legislation
shall have been instituted, threatened or proposed before any court,
governmental agency or legislative body to enjoin, restrain or prohibit, or to
obtain damages in respect of, this Agreement, the other Loan Documents or the
consummation of the transactions contemplated hereby or thereby or which, in the
Agent's sole discretion, would make it inadvisable to consummate the
transactions contemplated by this Agreement or any of the other Loan Documents.
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7.1.11 Insurance Policies;Certificates of Insurance;Endorsements.
The Loan Parties shall have delivered evidence acceptable to the
Agent that adequate insurance in compliance with Section 8.1.3 [Maintenance of
Insurance] is in full force and effect and that all premiums then due thereon
have been paid, together with a certificate of casualty insurance policy or
policies evidencing coverage satisfactory to the Agent.
7.1.12 Administrative Questionnaire.
Each of the Banks and the Borrowers shall have completed and
delivered to the Agent the Agent's form of administrative questionnaire.
7.2 Each Additional Loan or Letter of Credit.
At the time of making any Loans or issuing any Letters of Credit other
than Loans made or Letters of Credit issued on the Closing Date and after giving
effect to the proposed extensions of credit: the representations and warranties
of the Loan Parties contained in Section 6 and in the other Loan Documents shall
be true on and as of the date of such additional Loan or Letter of Credit with
the same effect as though such representations and warranties had been made on
and as of such date (except representations and warranties which expressly
relate solely to an earlier date or time, which representations and warranties
shall be true and correct on and as of the specific dates or times referred
to therein) and the Loan Parties shall have performed and complied with all
covenants and conditions hereof; no Event of Default or Unmatured Default
shall have occurred and be continuing or shall exist; the making of the Loans
or issuance of such Letter of Credit shall not contravene any Law applicable
to any Loan Party or Subsidiary of any Loan Party or any of the Banks; and the
Borrowers shall have delivered to the Agent a duly executed and completed Loan
Request or application for a Letter of Credit as the case may be.
8. COVENANTS
8.1 Affirmative Covenants.
The Loan Parties, jointly and severally, covenant and agree that until
payment in full of the Loans, Reimbursement Obligations and Letter of Credit
Borrowings, and interest thereon, expiration or termination of all Letters of
Credit, satisfaction of all of the Loan Parties' other Obligations under the
Loan Documents and termination of the Commitments, the Loan Parties shall comply
at all times with the following affirmative covenants:
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8.1.1 Preservation of Existence, Etc.
Each Loan Party shall, and shall cause each of its Subsidiaries
to, maintain its legal existence as a corporation, limited partnership or
limited liability company and its license or qualification and good standing in
each jurisdiction in which its ownership or lease of property or the nature of
its business makes such license or qualification necessary, except as otherwise
expressly permitted in Section 8.2.5 [Liquidations, Mergers, Etc.].
8.1.2 Payment of Liabilities, Including Taxes, Etc.
Each Loan Party shall, and shall cause each of its Subsidiaries
to, duly pay and discharge all liabilities to which it is subject or which are
asserted against it, promptly as and when the same shall become due and payable,
including all taxes, assessments and governmental charges upon it or any of its
properties, assets, income or profits, prior to the date on which penalties
attach thereto, except to the extent that such liabilities, including taxes,
assessments or charges, are being contested in good faith and by appropriate and
lawful proceedings diligently conducted and for which such reserve or other
appropriate provisions, if any, as shall be required by GAAP shall have been
made, but only to the extent that failure to discharge any such liabilities
would not result in any additional liability and/or Lien which would adversely
affect to a material extent the financial condition of any Loan Party or
Subsidiary of any Loan Party, provided that the Loan Parties and their
Subsidiaries will pay all such liabilities forthwith upon the commencement of
proceedings to foreclose any Lien which may have attached as security therefor.
8.1.3 Maintenance of Insurance.
Each Loan Party shall, and shall cause each of its Subsidiaries
to, insure its properties and assets against loss or damage by fire and such
other insurable hazards as such assets are commonly insured (including fire,
extended coverage, property damage, workers' compensation, public liability and
business interruption insurance) and against other risks (including errors and
omissions) in such amounts as similar properties and assets are insured by
prudent companies in similar circumstances carrying on similar businesses, and
with reputable and financially sound insurers, including self-insurance to the
extent customary, all as reasonably determined by the Agent. At the request of
the Agent, the Loan Parties shall deliver to the Agent and each of the Banks (x)
on the Closing Date and annually thereafter an original certificate of insurance
signed by the Loan Parties' independent insurance broker describing and
certifying as to the existence of the insurance required to be maintained by
this Agreement and the other Loan Documents from time to time a summary schedule
indicating all insurance then in force with respect to each of the Loan Parties.
8.1.4 Maintenance of Properties and Leases.
Each Loan Party shall, and shall cause each of its Subsidiaries
to, maintain in good repair, working order and condition (ordinary wear and tear
excepted) in accordance with the general practice of other businesses of similar
character and size, all of those properties useful or necessary to its business,
and from time to time, such Loan Party will make or cause to be made all
appropriate repairs, renewals or replacements thereof.
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8.1.5 Maintenance of Patents, Trademarks, Etc.
Each Loan Party shall, and shall cause each of its Subsidiaries
to, maintain in full force and effect all patents, trademarks, service marks,
trade names, copyrights, licenses, franchises, permits and other authorizations
necessary for the ownership and operation of its properties and business if the
failure so to maintain the same would constitute a Material Adverse Change.
8.1.6 Visitation Rights.
Each Loan Party shall, and shall cause each of its Subsidiaries
to, permit any of the officers or authorized employees or representatives of the
Agent or any of the Banks to visit and inspect any of its properties and to
examine and make excerpts (subject to the confidentiality provisions contained
herein) from its books and records and discuss its business affairs, finances
and accounts with its officers, all in such detail and at such times and as
often as any of the Banks may reasonably request, provided that each Bank shall
provide the Borrowers and the Agent with reasonable notice prior to any visit or
inspection, provided, further that so long as no Event of Default or Unmatured
Default has occurred and is continuing, no such inspection shall occur during
the two week period preceding the day of the running of the Kentucky Derby or
the two week period preceding the running of the Breeder's Cup if the Breeder's
Cup is to be held at Xxxxxxxxx Xxxxx. In the event any Bank desires to conduct
an audit of any Loan Party, such Bank shall make a reasonable effort to conduct
such audit contemporaneously with any audit to be performed by the Agent.
8.1.7 Keeping of Records and Books of Account.
The Borrowers shall, and shall cause each Subsidiary of the
Borrowers to, maintain and keep proper books of record and account which enable
the Borrowers and their respective Subsidiaries to issue financial statements in
accordance with GAAP and as otherwise required by applicable Laws of any
Official Body having jurisdiction over the Borrowers or any Subsidiary of the
Borrower, and in which full, true and correct entries shall be made in all
material respects of all its dealings and business and financial affairs.
8.1.8 Plans and Benefit Arrangements.
The Borrowers shall, and shall cause each other member of the
ERISA Group to, comply with ERISA, the Internal Revenue Code and other
applicable Laws applicable to Plans and Benefit Arrangements except where such
failure, alone or in conjunction with any other failure, would not result in a
Material Adverse Change. Without limiting the generality of the foregoing, the
Borrowers shall cause all of its Plans and all Plans maintained by any member of
the ERISA Group to be funded in accordance with the minimum funding requirements
of ERISA and shall make, and cause each member of the ERISA Group to make, in a
timely manner, all contributions due to Plans, Benefit Arrangements and
Multiemployer Plans.
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8.1.9 Compliance with Laws.
Each of the Borrowers shall and shall cause each of its
Subsidiaries to comply with all applicable Laws, including all Environmental
Laws, in all respects, provided that it shall not be deemed to be a violation of
this Section 8.1.9 if any failure to comply with any Law would not result in
fines, penalties, remediation costs, other similar liabilities or injunctive
relief which in the aggregate would constitute a Material Adverse Change.
8.1.10 Use of Proceeds.
The Loan Parties will use the Letters of Credit and the proceeds
of the Loans only for the purposes set forth in Section 2.8 [Use of Proceeds]
and shall not use the Letters of Credit and the proceeds of the Loans for any
purposes which contravenes any applicable Law or any provision hereof.
8.1.11 Subordination of Intercompany Loans.
Each Loan Party shall cause any intercompany Indebtedness, loans
or advances owed by any Loan Party to any other Loan Party to be subordinated
pursuant to the terms of the Intercompany Subordination Agreement.
8.2 Negative Covenants.
The Loan Parties, jointly and severally, covenant and agree that until
payment in full of the Loans, Reimbursement Obligations and Letter of Credit
Borrowings and interest thereon, expiration or termination of all Letters of
Credit, satisfaction of all of the Loan Parties' other Obligations hereunder and
termination of the Commitments, the Loan Parties shall comply with the following
negative covenants:
8.2.1 Indebtedness.
Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, at any time create, incur, assume or suffer to exist any
Indebtedness, except:
(i) Indebtedness under the Loan Documents;
(ii) Existing Indebtedness as set forth on Schedule
8.2.1 (including any extensions or renewals thereof), provided there is no
increase in the amount thereof or other significant change in the terms thereof
unless otherwise specified on Schedule 8.2.1;
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(iii) Indebtedness of a Loan Party to another Loan Party
which is subordinated in accordance with the provisions of Section 8.1.11
[Subordination of Intercompany Loans];
(iv) Indebtedness secured by any Permitted Lien;
(v) Senior unsecured notes issued pursuant to a private
placement provided that all of the proceeds of such private placement are used
to repay outstanding indebtedness under the Credit Facility and subject to
demonstration of pro forma covenant compliance; and
(vi) Any asset securitization financing provided that
the proceeds from such asset securitization financing repay outstanding
indebtedness under the Credit Facility and the Credit Facility shall be
permanently reduced by the amount of such financing and such financing shall be
subject to demonstration of pro forma covenant compliance.
8.2.2 No Liens; Negative Pledge.
Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, at any time create, incur, assume or suffer to exist any
Lien on any of its property or assets, tangible and/or intangible, real and/or
personal now owned or hereafter acquired, or agree or become liable to do so,
except Permitted Liens. Each of the Loan Parties shall not, and shall not permit
any of its Subsidiaries to, at any time agree with any party other than the
Agent and the Banks in the Loan Documents to refrain from creating, incurring or
suffering to exist any Lien on any of its property or assets.
8.2.3 Guaranties.
Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, at any time, directly or indirectly, become or be liable in
respect of any Guaranty, or assume, guarantee, become surety for, endorse or
otherwise agree, become or remain directly or contingently liable upon or with
respect to any obligation or liability of any other Person, except for
Guaranties entered into in the ordinary course of business on behalf of
Borrowers or a Borrower not to exceed $5,000,000 in the aggregate and which are
otherwise permitted hereunder.
8.2.4 Loans and Investments.
Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, at any time make or suffer to remain outstanding any loan
or advance to, or purchase, acquire or own any stock, bonds, notes or securities
of, or any partnership interest (whether general or limited) or limited
liability company interest in, or any other investment or interest in, or make
any capital contribution to, any other Person, or agree, become or remain liable
to do any of the foregoing, except:
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(i) trade credit extended on usual and customary terms
in the ordinary course of business;
(ii) advances to employees to meet expenses incurred by
such employees in the ordinary course of business;
(iii) Permitted Investments;
(iv) Permitted Acquisitions; and
(v) loans and advances to, and investments in, other Loan
Parties.
8.2.5 Liquidations, Mergers, Consolidations, Acquisitions.
Other than Permitted Investments, which are expressly
permitted, each of the Borrowers shall not, and shall not permit any of its
Subsidiaries (other than Hoosier Park, LP and Xxxxxxxx Park, Inc.) to, dissolve,
liquidate or wind-up its affairs, or become a party to any merger or
consolidation, or acquire by purchase, lease or otherwise the assets, capital
stock or ownership interests of any other Person, provided that the
following transactions shall not be prohibited by this Section 8.2.5 (each, a
"Permitted Acquisition")
(1) any Loan Party other than the Borrower may
consolidate or merge into another Loan Party which is wholly-owned by one or
more of the other Loan Parties, and
(2) any Loan Party may merge, consolidate or acquire
by purchase, lease or otherwise, (A) the capital stock or ownership interests of
another Person or (B) assets of another Person, provided that each of the
following requirements is met:
(i) if the Loan Parties are acquiring the
capital stock or ownership interests in such Person, which is a Controlling
Interest, such Person shall execute a Joinder Agreement and join this Agreement
as a Borrower pursuant to Section 11.18 [Joinder of New Subsidiaries] on or
before the date of such Permitted Acquisition;
(ii) the board of directors or other equivalent
governing body of such Person shall have approved such Permitted Acquisition
and, if the Loan Parties shall use any portion of the Loans to fund such
Permitted Acquisition, the Loan Parties also shall have delivered to the Banks
written evidence of the approval of the board of directors (or equivalent body)
of such Person for such Permitted Acquisition;
(iii) the business acquired, or the business
conducted by the Person whose ownership interests are being acquired, as
applicable, shall be substantially the same, similar to, in furtherance of
or incidental to one or more line or lines of business conducted by the Loan
Parties and shall comply with Section 8.2.9 [No Material Change in Business]
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(iv) no Unmatured Default or Event of Default
shall exist immediately prior to and after giving effect to such Permitted
Acquisition;
(v) the Loan Parties shall demonstrate that they
shall be in compliance with the covenants contained in Sections 8.2.14 through
8.2.16 after giving effect to such Permitted Acquisition by delivering at
least five (5) Business Days prior to such Permitted Acquisition a certificate
in the form of Exhibit 8.2.5 evidencing such compliance and pro forma financial
statements of the Borrowers and such Person as if such Permitted Acquisition had
occurred, and the actual Financial Statements of such Person used by the Loan
Parties to create Exhibit 8.2.5;
(3) Any Loan Party may acquire assets in the ordinary course of
business.
8.2.6 Dispositions of Assets or Subsidiaries.
Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries (except for Hoosier Park, LP and Xxxxxxxx Park, Inc.) to, sell,
convey, assign, lease, abandon or otherwise transfer or dispose of, voluntarily
or involuntarily, any of its properties or assets, tangible or intangible
(including sale, assignment, discount or other disposition of accounts, contract
rights, chattel paper, equipment or general intangibles with or without recourse
or of capital stock, shares of beneficial interest, partnership interests or
limited liability company interests of a Subsidiary of such Loan Party), except:
(i) transactions involving the sale or use for a fee of
simulcast signals or other assets or rights in the ordinary course of business;
(ii) any sale, transfer or lease of assets in the
ordinary course of business which are no longer necessary or required in the
conduct of such Loan Party's or such Subsidiary's business;
(iii) any sale, transfer or lease of assets by any wholly
owned Subsidiary of such Loan Party to another Loan Party;
(iv) any sale, transfer or lease of assets, other than
those specifically excepted pursuant to clauses (i) through (iii) above, which
is approved in writing by the Required Banks prior to such sale, transfer or
lease of assets which approval shall not be unreasonably withheld.
8.2.7 Affiliate Transactions.
Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, enter into or carry out any transaction with an Affiliate
(including purchasing property or services from or selling property or services
to any Affiliate of any Loan Party) unless such transaction is not otherwise
prohibited by this Agreement, is entered into in the ordinary course of business
upon fair and reasonable arm's-length terms and on conditions which are fully
disclosed to the Agent and is in accordance with all applicable Law.
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8.2.8 Subsidiaries, Partnerships and Joint Ventures.
Except as otherwise permitted in this Agreement, each of the Loan
Parties shall not, and shall not permit any of its Subsidiaries to, own or
create directly or indirectly any Subsidiaries other than (i) any Subsidiary
which has joined this Agreement as Borrower on the Closing Date; and (ii) any
Subsidiary formed after the Closing Date which joins this Agreement as a
Borrower pursuant to Section 11.18 [Joinder of New Subsidiaries], provided that
the Required Banks shall have consented to such formation and joinder. Except as
otherwise permitted in this Agreement, each of the Loan Parties shall not become
or agree to become (1) a general or limited partner in any general or limited
partnership, except that the Loan Parties may be general or limited partners in
other Loan Parties, (2) a member or manager of, or hold a limited liability
company interest in, a limited liability company, except that the Loan Parties
may be members or managers of, or hold limited liability company interests in,
other Loan Parties, or (3) a joint venturer or hold a joint venture interest in
any joint venture.
8.2.9 No Material Change in Business.
Each of the Loan Parties shall not, and shall not allow any of
its Subsidiaries to, permit any material change in the business conducted and
operated by such Loan Party or Subsidiary during the present fiscal year, except
that Borrowers may own or lease and operate video lottery terminals and may own
and/or operate or may be party to a joint venture with respect to a hotel
located on the property at 000 Xxxxxxx Xxxxxx.
8.2.10 Plans and Benefit Arrangements.
Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to:
(i) fail to satisfy the minimum funding requirements of
ERISA and the Internal Revenue Code with respect to any Plan;
(ii) request a minimum funding waiver from the Internal
Revenue Service with respect to any Plan;
(iii) engage in a Prohibited Transaction with any Plan,
Benefit Arrangement or Multiemployer Plan which, alone or in conjunction with
any other circumstances or set of circumstances resulting in liability under
ERISA, would constitute a Material Adverse Change;
(iv) permit the aggregate actuarial present value of all
benefit liabilities (whether or not vested) under any Plan which is not in a
Multi-employer Plan, determined on a plan termination basis, as disclosed
in the most recent actuarial report completed with respect to such Plan,
to exceed, as of any actuarial valuation date, the fair market value of the
assets of such Plan;
(v) fail to make when due any contribution to any
Multiemployer Plan that the Borrowers or any member of the ERISA Group may be
required to make under any agreement relating to such Multiemployer Plan, or any
Law pertaining thereto;
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(vi) withdraw (completely or partially) from any
Multiemployer Plan or withdraw (or be deemed under Section 4062(e) of ERISA
to withdraw) from any Multiple Employer Plan, where any such withdrawal
is likely to result in a material liability of the Borrowers or any member of
the ERISA Group;
(vii) terminate, or institute proceedings to terminate,
any Plan, where such termination is likely to result in a material liability to
the Borrowers or any member of the ERISA Group;
(viii) make any amendment to any Plan with respect to
which security is required under Section 307 of ERISA; or
(ix) fail to give any and all notices and make all
disclosures and governmental filings required under ERISA or the Internal
Revenue Code, where such failure is likely to result in a Material Adverse
Change.
8.2.11 Fiscal Year.
The Borrowers shall not, and shall not permit any Subsidiary of
the Borrowers to, change its fiscal year from the twelve-month period beginning
January 1 and ending December 31.
8.2.12 Issuance of Stock.
Each of the Loan Parties other than Xxxxxxxxx Downs Incorporated
shall not, and shall not permit any of its Subsidiaries to, issue any additional
shares of its capital stock or any options, warrants or other rights in respect
thereof to any Person not a Loan Party.
8.2.13 Changes in Organizational Documents.
On or after June 19, 1998, each of the Loan Parties shall not,
and shall not permit any of its Subsidiaries to, amend in any respect its
certificate of incorporation (including any provisions or resolutions relating
to capital stock), by-laws, certificate of limited partnership, partnership
agreement, certificate of formation, limited liability company agreement or
other organizational documents without providing at least ten (10) calendar
days' prior written notice to the Agent and the Banks and, in the event such
change would be adverse to the Banks as determined by the Agent in its sole
discretion, obtaining the prior written consent of the Required Banks.
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8.2.14 Maximum Ratio of Funded Debt to EBITDA.
The Loan Parties shall not permit the ratio of Consolidated
Funded Debt as of the last day of each of the Borrowers' fiscal quarter to
Consolidated EBITDA for the four fiscal quarters ending on that date to exceed
3.50 to 1.0 from the Closing Date through and including December 31, 1999 and
3.25 to 1.0 from January 1, 2000. For purposes of this covenant, EBITDA shall
include the rolling four quarter results of any entity being acquired by the
Borrowers if such entity will become a Borrower hereunder.
8.2.15 Interest Coverage Ratio.
The Loan Parties shall not permit their ratio of Consolidated
EBIT plus Consolidated Rent Expense to the sum of Consolidated Interest Expense
plus Consolidated Rent Expense, in each case for the four fiscal quarters ending
on the last day of each of the Borrowers' fiscal quarters to be less than 3.0 to
1.0.
8.2.16 Minimum Tangible Net Worth.
The Loan Parties shall not permit their Consolidated Tangible Net
Worth to be less than the Base Net Worth plus an amount equal to Fifty Percent
(50%) of the Borrowers' Consolidated net income cumulatively for every year
after fiscal year 1997, plus One Hundred Percent (100%) of the net proceeds from
any public and/or private offering and/or sale of any common and/or preferred
stock and/or other equity security, and/or any note, debenture, or other
security convertible, in whole or in part, to common and/or preferred stock
and/or other equity security.
8.2.17 Margin Stock.
The Borrowers will not use or cause or permit the proceeds of the
Loan to be used, either directly or indirectly, for the purpose, whether
immediate, incidental or ultimate, of purchasing or carrying any margin stock
within the meaning of Regulation U of the board of Governors of the Federal
Reserve System, as amended from time to time.
8.2.18 Other Agreements.
The Loan Parties will not enter into any agreement containing any
provision which would be violated or breached by the performance of its
obligations hereunder or under any instrument or document delivered or to be
delivered by it hereunder or in connection herewith.
8.3 Reporting Requirements.
The Loan Parties, jointly and severally, covenant and agree that until
payment in full of the Loans, Reimbursement Obligations and Letter of Credit
Borrowings and interest thereon, expiration or termination of all Letters of
Credit, satisfaction of all of the Loan Parties' other Obligations hereunder and
under the other Loan Documents and termination of the Commitments, the Loan
Parties will furnish or cause to be furnished to the Agent and each of the
Banks:
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8.3.1 Quarterly Financial Statements.
As soon as available and in any event within forty-five (45)
calendar days after the end of each of the first three fiscal quarters in each
fiscal year, financial statements of the Borrowers, consisting of a consolidated
balance sheet as of the end of such fiscal quarter and related consolidated
statements of income, stockholders' equity [retained earnings] and cash flows
for the fiscal quarter then ended and the fiscal year through that date, all in
reasonable detail and certified (subject to normal year-end audit adjustments)
by the Chief Executive Officer, President or Chief Financial Officer of the
Borrowers as having been prepared in accordance with GAAP, consistently applied,
and setting forth in comparative form the respective financial statements for
the corresponding date and period in the previous fiscal year.
8.3.2 Annual Financial Statements.
As soon as available and in any event within ninety (90) days
after the end of each fiscal year of the Borrowers, audited financial statements
of the Borrowers consisting of a consolidated balance sheet as of the end of
such fiscal year, and related consolidated statements of income, stockholders'
equity and cash flows for the fiscal year then ended for all of the Borrowers on
a consolidated basis, all in reasonable detail and setting forth in comparative
form the financial statements as of the end of and for the preceding fiscal
year, together with (i) a report certified by independent certified public
accountants of nationally recognized standing satisfactory to the Agent, and
(ii) a Certificate of Compliance from the Chief Executive Officer, President or
Chief Financial Officer of the Borrowers. The certificate or report of
accountants shall be free of qualifications (other than any consistency quali-
fication that may result from a change in the method used to prepare the
financial statements as to which such accountants concur) and shall not
indicate the occurrence or existence of any event, condition or contingency
which would materially impair the prospect of payment or performance of any
covenant, agreement or duty of any Loan Party under any of the Loan Documents.
8.3.3 Certificate of the Borrower.
Concurrently with the financial statements of the Borrowers
furnished to the Agent and to the Banks pursuant to Sections 8.3.1 [Quarterly
Financial Statements] and 8.3.2 [Annual Financial Statements], a certificate of
the Borrowers signed by the Chief Executive Officer, President or Chief
Financial Officer of the Borrower, in the form of Exhibit 8.3.3, to the effect
that, except as described pursuant to Section 8.3.4 [Notice of Default], (i) the
representations and warranties of the Borrowers contained in Section 6 and in
the other Loan Documents are true on and as of the date of such certificate with
the same effect as though such representations and warranties had been made on
and as of such date (except representations and warranties which expressly
relate solely to an earlier date or time) and the Loan Parties have performed
and complied with all covenants and conditions hereof, (ii) no Event of Default
or Unmatured Default exists and is continuing on the date of such certificate
and (iii) containing calculations in sufficient detail to demonstrate compliance
as of the date of such financial statements with all financial covenants
contained in Section 8.2 [Negative Covenants].
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8.3.4 Notice of Default.
Promptly after any officer of any Loan Party has learned of the
occurrence of an Event of Default or Unmatured Default, a certificate signed by
the Chief Executive Officer, President or Chief Financial Officer of such Loan
Party setting forth the details of such Event of Default or Unmatured Default
and the action which the such Loan Party proposes to take with respect thereto.
8.3.5 Notice of Litigation.
Promptly after the commencement thereof, notice of all actions,
suits, proceedings or investigations before or by any Official Body or any other
Person against any Loan Party or Subsidiary of any Loan Party which relate to
any Person and, involve a claim or series of claims in excess of $500,000 or
which if adversely determined would constitute a Material Adverse Change.
8.3.6 Certain Events.
Written notice to the Agent:
(i) at least sixty (60) calendar days prior thereto
with respect to any proposed sale or transfer of assets pursuant to Section
8.2.6(iv), and
(ii) within the time limits set forth in Section 8.2.13
[Changes in Organizational Documents], any amendment to the organizational
documents of any Loan Party.
8.3.7 Other Reports and Information.
Promptly upon their becoming available to the Borrower:
(i) any reports including management letters submitted
to the Borrowers by independent accountants in connection with any annual,
interim or special audit related to or revealing a Material Adverse Change,
(ii) any reports, notices or proxy statements generally
distributed by the Borrowers to its stockholders on a date no later than th
date supplied to such stockholders,
(iii) regular or periodic reports, including Forms 10-K,
10-Q and 8-K, registration statements and prospectuses, filed by the Borrowers
with the Securities and Exchange Commission,
(iv) a copy of any order requiring any Borrower or any
subsidiary of a Borrower to pay a judgment in excess of $500,000 in any
proceeding to which the Borrowers or any of their respective Subsidiaries is
a party issued by any Official Body, and
(v) such other reports and information as any of the
Banks may from time to time reasonably request. The Borrowers shall also notify
the Banks promptly of the enactment or adoption of any Law which may result in
a Material Adverse Change.
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8.3.8 Notices Regarding Plans and Benefit Arrangements.
8.3.8.1 Certain Events.
Promptly upon becoming aware of the occurrence thereof,
notice (including the nature of the event and, when known, any action taken or
threatened by the Internal Revenue Service or the PBGC with respect thereto) of:
(i) any Reportable Event with respect to the
Borrowers or any other member of the ERISA Group (regardless of whether the
obligation to report said Reportable Event to the PBGC has been waived),
(ii) any Prohibited Transaction which could
subject the Borrowers or any other member of the ERISA Group to a civil penalty
assessed pursuant to Section 502(i) of ERISA or a tax imposed by Section 4975 of
the Internal Revenue Code in connection with any Plan, any Benefit Arrangement
or any trust created thereunder,
(iii) any assertion of material withdrawal
liability with respect to any Multiemployer Plan,
(iv) any partial or complete withdrawal from a
Multiemployer Plan by the Borrowers or any other member of the ERISA Group under
Title IV of ERISA (or assertion thereof), where such withdrawal is likely to
result in material withdrawal liability,
(v) any cessation of operations (by the
Borrowers or any other member of the ERISA Group) at a facility in the circum-
stances described in Section 4062(e) of ERISA,
(vi) withdrawal by the Borrowers or any other
member of the ERISA Group from a Multiple Employer Plan,
(vii) a failure by the Borrowers or any other
member of the ERISA Group to make a payment to a Plan required to avoid
imposition of a Lien under Section 302(f) of ERISA,
(viii) the adoption of an amendment to a Plan
requiring the provision of security to such Plan pursuant to Section 307 of
ERISA, or
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(ix) any change in the actuarial assumptions or
funding methods used for any Plan, where the effect of such change is to
materially increase or materially reduce the unfunded benefit liability or
obligation to make periodic contributions.
8.3.8.2 Notices of Involuntary Termination and Annual Reports.
Promptly after receipt thereof, copies of (a) all notices
received by the Borrowers or any other member of the ERISA Group of the
PBGC's intent to terminate any Plan administered or maintained by the Borrowers
or any member of the ERISA Group, or to have a trustee appointed to administer
any such Plan; and (b) at the request of the Agent or any Bank each annual
report (IRS Form 5500 series) and all accompanying schedules, the most recent
actuarial reports, the most recent financial information concerning the
financial status of each Plan administered or maintained by the Borrowers or
any other member of the ERISA Group, and schedule showing the amount
contributed to each such Plan by or on behalf of the Borrowers or any other
member of the ERISA Group in which any of their personnel participate or from
which such personnel may derive a benefit, and each Schedule B (Actuarial
Information) to the annual report filed by the Borrowers or any other member
of the ERISA Group with the Internal Revenue Service with respect to each such
Plan.
8.3.8.3 Notice of Voluntary Termination.
Promptly upon the filing thereof, copies of any Form 5310,
or any successor or equivalent form to Form 5310, filed with the PBGC in
connection with the termination of any Plan.
9. DEFAULT
9.1 Events of Default.
An Event of Default shall mean the occurrence or existence of any one or
more of the following events or conditions (whatever the reason therefor and
whether voluntary, involuntary or effected by operation of Law):
9.1.1 Payments Under Loan Documents.
The Borrowers shall fail to pay any principal of any Loan
(including scheduled installments, mandatory prepayments or the payment due at
maturity), Reimbursement Obligation or Letter of Credit Borrowing or shall fail
to pay any interest on any Loan , Reimbursement Obligation or Letter of Credit
Borrowing or any other amount owing hereunder or under the other Loan Documents
within five calendar days after such principal, interest or other amount becomes
due in accordance with the terms hereof or thereof;
9.1.2 Breach of Warranty.
Any representation or warranty made at any time by any of the
Loan Parties herein or by any of the Loan Parties in any other Loan Document, or
in any certificate, other instrument or statement furnished pursuant to the
provisions hereof or thereof, shall prove to have been false or misleading in
any material respect as of the time it was made or furnished;
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9.1.3 Breach of Negative Covenants or Visitation Rights.
Any of the Loan Parties shall default in the observance or
performance of any covenant contained in Section 8.1.6 [Visitation Rights] or
Section 8.2 [Negative Covenants];
9.1.4 Breach of Other Covenants.
Any of the Loan Parties shall default in the observance or
performance of any other covenant, condition or provision hereof or of any other
Loan Document and such default shall continue unremedied for a period of ten
(10) Business Days after any Senior Vice President, or the Vice President of
Finance/Treasurer of any Loan Party becomes aware of the occurrence thereof
(such grace period to be applicable only in the event such default can be
remedied by corrective action of the Loan Parties as determined by the Agent in
its sole discretion);
9.1.5 Defaults in Other Agreements or Indebtedness.
A default or event of default shall occur at any time under the
terms of any other agreement involving borrowed money or the extension of credit
or any other Indebtedness under which any Loan Party or Subsidiary of any Loan
Party may be obligated as a borrower or guarantor in excess of $500,000 in the
aggregate, and such breach, default or event of default consists of the failure
to pay (beyond any period of grace permitted with respect thereto, whether
waived or not) any indebtedness when due (whether at stated maturity, by
acceleration or otherwise) or if such breach or default permits or causes the
acceleration of any indebtedness (whether or not such right shall have been
waived) or the termination of any commitment to lend;
9.1.6 Other Material Obligations.
Subject to the expiration of any applicable grace period, default in the
payment when due, or in the performance or observance of, any material
obligation of, or condition agreed to by any of the Borrowers with respect to
any material purchase or lease of goods or services except to the extent that
the existence of any such default is being contested by the Borrowers in good
faith and by appropriate proceedings and where failure to cure such default
would result in the occurrence of a Material Adverse Change.
9.1.7 Final Judgments or Orders.
Any final judgments or orders for the payment of money in excess
of $500,000 in the aggregate shall be entered against any Loan Party by a court
having jurisdiction in the premises, which judgment is not discharged, vacated,
bonded or stayed pending appeal within a period of thirty (30) days from the
date of entry;
9.1.8 Loan Document Unenforceable.
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Any of the Loan Documents shall cease to be legal, valid and
binding agreements enforceable against the party executing the same or such
party's successors and assigns (as permitted under the Loan Documents) in
accordance with the respective terms thereof or shall in any way be terminated
(except in accordance with its terms) or become or be declared ineffective or
inoperative or shall in any way be challenged or contested or cease to give or
provide the respective rights, interests, remedies, powers or privileges
intended to be created thereby;
9.1.9 Uninsured Losses; Proceedings Against Assets.
There shall occur any material uninsured damage to or loss, theft
or destruction of any of the Borrowers' property in excess of $500,000 or the
Borrowers' property or any other of the Loan Parties' or any of their
Subsidiaries' assets are attached, seized, levied upon or subjected to a writ or
distress warrant; or such come within the possession of any receiver, trustee,
custodian or assignee for the benefit of creditors and the same is not cured
within thirty (30) days thereafter;
9.1.10 Notice of Lien or Assessment.
A notice of Lien or assessment in excess of $500,000 which is not
a Permitted Lien is filed of record with respect to all or any part of any of
the Loan Parties' or any of their Subsidiaries' assets by the United States, or
any department, agency or instrumentality thereof, or by any state, county,
municipal or other governmental agency, including the PBGC, or any taxes or
debts owing at any time or times hereafter to any one of these becomes payable
and the same is not paid within thirty (30) days after the same becomes payable
except that the Borrower may refrain from paying any amount that it would be
required to pay pursuant to this Section 9.1.10 if the validity or amount
thereof is being contested in good faith by appropriate proceedings timely
instituted which shall operate to prevent the collection or enforcement of the
obligation contested, provided that if the Borrower is engaged in such a
contest, it shall have set aside on its books appropriate reserves with respect
thereto. If the validity or amount of any such obligations in excess of Five
Hundred Thousand Dollars ($500,000) shall be contested pursuant to the
provisions of this subparagraph, the Borrower shall notify the Banks immediately
upon the institution of the proceeding contesting the obligation;
9.1.11 Insolvency.
Any Loan Party or any Subsidiary of a Loan Party ceases to be
solvent or admits in writing its inability to pay its debts as they mature;
9.1.12 Events Relating to Plans and Benefit Arrangements.
Any of the following occurs: (i) any Reportable Event, which the
Agent determines in good faith constitutes grounds for the termination of any
Plan by the PBGC or the appointment of a trustee to administer or liquidate any
Plan, shall have occurred and be continuing; (ii) proceedings shall have been
instituted or other action taken to terminate any Plan, or a termination notice
shall have been filed with respect to any Plan; (iii) a trustee shall be
appointed to administer or liquidate any Plan; (iv) the PBGC shall give notice
of its intent to institute proceedings to terminate any Plan or Plans or to
appoint a trustee to administer or liquidate any Plan; and, in the case of the
occurrence of (i), (ii), (iii) or (iv) above, the Agent determines in good faith
that the amount of the Borrowers' liability is likely to exceed 10% of its
Consolidated Tangible Net Worth; (v) the Borrowers or any member of the ERISA
Group shall fail to make any contributions when due to a Plan or a Multiemployer
Plan; (vi) the Borrowers or any other member of the ERISA Group shall make any
amendment to a Plan with respect to which security is required under Section 307
of ERISA; (vii) the Borrowers or any other member of the ERISA Group shall
withdraw completely or partially from a Multiemployer Plan; (viii) the Borrowers
or any other member of the ERISA Group shall withdraw (or shall be deemed under
Section 4062(e) of ERISA to withdraw) from a Multiple Employer Plan; or (ix) any
applicable Law is adopted, changed or interpreted by any Official Body with
respect to or otherwise affecting one or more Plans, Multiemployer Plans or
Benefit Arrangements and, with respect to any of the events specified in (v),
(vi), (vii), (viii) or (ix), the Agent determines in good faith that any such
occurrence would be reasonably likely to materially and adversely affect the
total enterprise represented by the Borrowers and the other members of the ERISA
Group;
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9.1.13 Cessation of Business.
Any Loan Party or Subsidiary of a Loan Party ceases to conduct
its business as contemplated, except as expressly permitted under Section 8.2.5
[Liquidations, Mergers, Etc.] or 8.2.6 [Dispositions of Assets or Subsidiaries],
or any Loan Party or Subsidiary of a Loan Party is enjoined, restrained or in
any way prevented by court order from conducting all or any material part of its
business and such injunction, restraint or other preventive order is not
dismissed within thirty (30) days after the entry thereof;
9.1.14 Change of Control.
Any Person or group of persons (within the meaning of Sections
13(d) or 14(a) of the Securities Exchange Act of 1934, as amended) shall have
acquired beneficial ownership of (within the meaning of Rule 13d-3 promulgated
by the Securities and Exchange Commission under said Act) 51% or more of the
voting capital stock of the Borrower; or (ii) within a period of twelve (12)
consecutive calendar months, individuals who were directors of the Borrowers on
the first day of such period shall cease to constitute a majority of the board
of directors of the Borrower;
9.1.15 Involuntary Proceedings.
A proceeding shall have been instituted in a court having
jurisdiction in the premises seeking a decree or order for relief in respect of
any Loan Party or Subsidiary of a Loan Party in an involuntary case under any
applicable bankruptcy, insolvency, reorganization or other similar law now or
hereafter in effect, or for the appointment of a receiver, liquidator, assignee,
custodian, trustee, sequestrator, conservator (or similar official) of any Loan
Party or Subsidiary of a Loan Party for any substantial part of its property, or
for the winding-up or liquidation of its affairs, and such proceeding shall
remain undismissed or unstayed and in effect for a period of sixty (60)
consecutive days or such court shall enter a decree or order granting any of the
relief sought in such proceeding; or
9.1.16 Voluntary Proceedings.
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Any Loan Party or Subsidiary of a Loan Party shall commence a
voluntary case under any applicable bankruptcy, insolvency, reorganization or
other similar law now or hereafter in effect, shall consent to the entry of an
order for relief in an involuntary case under any such law, or shall consent to
the appointment or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator, conservator (or other similar official) of
itself or for any substantial part of its property or shall make a general
assignment for the benefit of creditors, or shall fail generally to pay its
debts as they become due, or shall take any action in furtherance of any of the
foregoing.
9.2 Consequences of Event of Default.
9.2.1 Events of Default Other Than Bankruptcy, Insolvency or
Reorganization Proceedings.
If an Event of Default specified under Sections 9.1.1 through
9.1.14 shall occur and be continuing, the Banks and the Agent shall be under no
further obligation to make Loans or issue Letters of Credit, as the case may be,
and the Agent may, and upon the request of the Required Banks, shall (i) by
written notice to the Borrower, declare the unpaid principal amount of the Notes
then outstanding and all interest accrued thereon, any unpaid fees and all other
Indebtedness of the Borrowers to the Banks hereunder and thereunder to be
forthwith due and payable, and the same shall thereupon become and be
immediately due and payable to the Agent for the benefit of each Bank without
presentment, demand, protest or any other notice of any kind, all of which are
hereby expressly waived, and (ii) require the Borrowers to, and the Borrowers
shall thereupon, deposit in a non-interest-bearing account with the Agent, as
cash collateral for its Obligations under the Loan Documents, an amount equal to
the maximum amount currently or at any time thereafter available to be drawn on
all outstanding Letters of Credit, and the Borrowers hereby pledge to the Agent
and the Banks, and grant to the Agent and the Banks a security interest in, all
such cash as security for such Obligations. Upon curing all existing Events
of Default to the satisfaction of the Required Banks, the Agent shall return
such cash collateral to the Borrower; and
9.2.2 Bankruptcy, Insolvency or Reorganization Proceedings.
If an Event of Default specified under Section 9.1.15
[Involuntary Proceedings] or 9.1.16 [Voluntary Proceedings] shall occur, the
Banks shall be under no further obligations to make Loans hereunder and the
unpaid principal amount of the Loans then outstanding and all interest accrued
thereon, any unpaid fees and all other Indebtedness of the Borrowers to the
Banks hereunder and thereunder shall be immediately due and payable, without
presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived; and
9.2.3 Set-off.
If an Event of Default shall occur and be continuing, any Bank to
whom any Obligation is owed by any Loan Party hereunder or under any other Loan
Document or any participant of such Bank which has agreed in writing to be bound
by the provisions of Section 10.13 [Equalization of Banks] and any branch,
Subsidiary or Affiliate of such Bank or participant anywhere in the world shall
have the right, in addition to all other rights and remedies available to it,
without notice to such Loan Party, to set-off against and apply to the then
unpaid balance of all the Loans and all other Obligations of the Borrowers and
the other Loan Parties hereunder or under any other Loan Document any debt owing
to, and any other funds held in any manner for the account of, the Borrowers or
such other Loan Party by such Bank or participant or by such branch, Subsidiary
or Affiliate, including all funds in all deposit accounts (whether time or
demand, general or special, provisionally credited or finally credited, or
otherwise) now or hereafter maintained by the Borrowers or such other Loan Party
for its own account (but not including funds held in custodian or trust accounts
or the "Horseman's Account") with such Bank or participant or such branch,
Subsidiary or Affiliate. Such right shall exist whether or not any Bank or the
Agent shall have made any demand under this Agreement or any other Loan
Document, whether or not such debt owing to or funds held for the account of the
Borrowers or such other Loan Party is or are matured or unmatured and regardless
of the existence or adequacy of any Guaranty or any other security, right or
remedy available to any Bank or the Agent; and
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9.2.4 Suits, Actions, Proceedings.
If an Event of Default shall occur and be continuing, and whether
or not the Agent shall have accelerated the maturity of Loans pursuant to any of
the foregoing provisions of this Section 9.2, the Agent or any Bank, if owed any
amount with respect to the Loans, may proceed to protect and enforce its rights
by suit in equity, action at law and/or other appropriate proceeding, whether
for the specific performance of any covenant or agreement contained in this
Agreement or the other Loan Documents, including as permitted by applicable Law
the obtaining of the ex parte appointment of a receiver, and, if such amount
shall have become due, by declaration or otherwise, proceed to enforce the
payment thereof or any other legal or equitable right of the Agent or such Bank;
and
9.2.5 Application of Proceeds.
From and after the date on which the Agent has taken any action
pursuant to this Section 9.2 and until all Obligations of the Loan Parties have
been paid in full, or the exercise of any other remedy by the Agent, shall be
applied as follows:
(i) first, to reimburse the Agent and the Banks for
out-of-pocket costs, expenses and disbursements, including reasonable attorneys'
and paralegals' fees and legal expenses, incurred by the Agent or the Banks
in connection with collection of any Obligations of any of the Loan Parties
under any of the Loan Documents;
(ii) second, to the repayment of all Indebtedness then
due and unpaid of the Loan Parties to the Banks incurred under this Agreement or
any of the other Loan Documents, whether of principal, interest, fees, expenses
or otherwise, in such manner as the Agent may determine in its discretion; and
(iii) the balance, if any, as required by Law.
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9.2.6 Other Rights and Remedies.
The Banks shall have all rights and remedies contained in this
Agreement or in any of the other Loan Documents, or other applicable Law, all of
which rights and remedies shall be cumulative and non-exclusive, to the extent
permitted by Law. The Agent may, and upon the request of the Required Banks
shall, exercise all post-default rights granted to the Agent and the Banks under
the Loan Documents or applicable Law.
9.3 Reasonable Notice.
Any notice required to be given by the Agent if given not less than
seven (7) days prior to any proposed action, shall constitute commercially
reasonable and fair notice thereof to the Borrower.
10. THE AGENT
10.1 Appointment.
Each Bank hereby irrevocably designates, appoints and authorizes PNC
Bank to act as Agent for such Bank under this Agreement and to execute and
deliver or accept on behalf of each of the Banks the other Loan Documents. Each
Bank hereby irrevocably authorizes, and each holder of any
Note by the acceptance of a Note shall be deemed irrevocably to authorize, the
Agent to take such action on its behalf under the provisions of this Agreement
and the other Loan Documents and any other instruments and agreements referred
to herein, and to exercise such powers and to perform such duties hereunder as
are specifically delegated to or required of the Agent by the terms hereof,
together with such powers as are reasonably incidental thereto. PNC Bank agrees
to act as the Agent on behalf of the Banks to the extent provided in this
Agreement.
10.2 Delegation of Duties.
The Agent may perform any of its duties hereunder by or through agents
or employees (provided such delegation does not constitute a relinquishment of
its duties as Agent) and, subject to Sections 10.5 [Reimbursement of Agent by
Borrower, Etc.] and 10.6 [Exculpatory Provisions; Limitation of Liability],
shall be entitled to engage and pay for the advice or services of any attorneys,
accountants or other experts concerning all matters pertaining to its duties
hereunder and to rely upon any advice so obtained.
10.3 Nature of Duties; Independent Credit Investigation.
The Agent shall have no duties or responsibilities except those
expressly set forth in this Agreement and no implied covenants, functions,
responsibilities, duties, obligations, or liabilities shall be read into this
Agreement or otherwise exist. The duties of the Agent shall be mechanical and
administrative in nature; the Agent shall not have by reason of this Agreement a
fiduciary or trust relationship in respect of any Bank; and nothing in this
Agreement, expressed or implied, is intended to or shall be so construed as to
impose upon the Agent any obligations in respect of this Agreement except as
expressly set forth herein. Without limiting the generality of the foregoing,
the use of the term "agent" in this Agreement with reference to the Agent is not
intended to connote any fiduciary or other implied (or express) obligations
arising under agency doctrine of any applicable Law. Instead, such term is used
merely as a matter of market custom, and is intended to create or reflect only
an administrative relationship between independent contracting parties. Each
Bank expressly acknowledges (i) that the Agent has not made any representations
or warranties to it and that no act by the Agent hereafter taken, including any
review of the affairs of any of the Loan Parties, shall be deemed to constitute
any representation or warranty by the Agent to any Bank; (ii) that it has made
and will continue to make, without reliance upon the Agent, its own independent
investigation of the financial condition and affairs and its own appraisal of
the creditworthiness of each of the Loan Parties in connection with this
Agreement and the making and continuance of the Loans hereunder; and (iii)
except as expressly provided herein, that the Agent shall have no duty or
responsibility, either initially or on a continuing basis, to provide any Bank
with any credit or other information with respect thereto, whether coming into
its possession before the making of any Loan or at any time or times thereafter.
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10.4 Actions in Discretion of Agent; Instructions From the Banks.
The Agent agrees, upon the written request of the Required Banks, to
take or refrain from taking any action of the type specified as being within the
Agent's rights, powers or discretion herein, provided that the Agent shall not
be required to take any action which exposes the Agent to personal liability or
which is contrary to this Agreement or any other Loan Document or applicable
Law. In the absence of a request by the Required Banks, the Agent shall have
authority, in its sole discretion, to take or not to take any such action,
unless this Agreement specifically requires the consent of the Required Banks or
all of the Banks. Any action taken or failure to act pursuant to such
instructions or discretion shall be binding on the Banks, subject to Section
10.6 [Exculpatory Provisions; Limitation of Liability]. Subject to the
provisions of Section 10.6 [Exculpatory Provisions; Limitation of Liability], no
Bank shall have any right of action whatsoever against the Agent as a result of
the Agent acting or refraining from acting hereunder in accordance with the
instructions of the Required Banks, or in the absence of such instructions, in
the absolute discretion of the Agent.
10.5 Reimbursement and Indemnification of Agent by the Borrowers.
The Borrowers unconditionally agree to pay or reimburse the Agent and
hold the Agent harmless against (a) liability for the payment of all reasonable
out-of-pocket costs, expenses and disbursements, including fees and expenses of
counsel appraisers and environmental consultants, incurred by the Agent (i) in
connection with the development, negotiation, preparation, printing, execution,
administration, syndication, interpretation and performance of this Agreement
and the other Loan Documents, (ii) relating to any requested amendments, waivers
or consents pursuant to the provisions hereof, (iii) in connection with the
enforcement of this Agreement or any other Loan Document or collection of
amounts due hereunder or thereunder or the proof and allowability of any claim
arising under this Agreement or any other Loan Document, whether in bankruptcy
or receivership proceedings or otherwise, and (iv) in any workout or
restructuring or in connection with the protection, preservation, exercise or
enforcement of any of the terms hereof or of any rights hereunder or under any
other Loan Document or in connection with any foreclosure, collection or
bankruptcy proceedings, and (b) all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever which may be imposed on, incurred by or asserted
against the Agent, in its capacity as such, in any way relating to or arising
out of this Agreement or any other Loan Documents or any action taken or omitted
by the Agent hereunder or thereunder, provided that the Borrowers shall not be
liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements if the
same results from the Agent's gross negligence or willful misconduct, or if the
Borrowers were not given notice of the subject claim and the opportunity to
participate in the defense thereof, at its expense (except that the Borrowers
shall remain liable to the extent such failure to give notice does not result in
a loss to the Borrower), or if the same results from a compromise or settlement
agreement entered into without the consent of the Borrower, which shall not be
unreasonably withheld. In the event of a suspected Material Adverse Change, the
Borrowers agree to reimburse and pay all reasonable out-of-pocket expenses of
the Agent's regular employees and agents engaged to perform audits of the Loan
Parties' books, records and business properties.
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10.6 Exculpatory Provisions; Limitation of Liability.
Neither the Agent nor any of its directors, officers, employees, agents,
attorneys or Affiliates shall (a) be liable to any Bank for any action taken or
omitted to be taken by it or them hereunder, or in connection herewith including
pursuant to any Loan Document, unless caused by its or their own gross
negligence or willful misconduct, (b) be responsible in any manner to any of the
Banks for the effectiveness, enforceability, genuineness, validity or the due
execution of this Agreement or any other Loan Documents or for any recital,
representation, warranty, document, certificate, report or statement herein or
made or furnished under or in connection with this Agreement or any other Loan
Documents, or (c) be under any obligation to any of the Banks to ascertain or to
inquire as to the performance or observance of any of the terms, covenants or
conditions hereof or thereof on the part of the Loan Parties, or the financial
condition of the Loan Parties, or the existence or possible existence of any
Event of Default or Unmatured Default. No claim may be made by any of the Loan
Parties, any Bank, the Agent or any of their respective Subsidiaries against the
Agent, any Bank or any of their respective directors, officers, employees,
agents, attorneys or Affiliates, or any of them, for any special, indirect or
consequential damages or, to the fullest extent permitted by Law, for any
punitive damages in respect of any claim or cause of action (whether based on
contract, tort, statutory liability, or any other ground) based on, arising out
of or related to any Loan Document or the transactions contemplated hereby or
any act, omission or event occurring in connection therewith, including the
negotiation, documentation, administration or collection of the Loans, and each
of the Loan Parties, (for itself and on behalf of each of its Subsidiaries), the
Agent and each Bank hereby waive, releases and agree never to xxx upon any claim
for any such damages, whether such claim now exists or hereafter arises and
whether or not it is now known or suspected to exist in its favor. Each Bank
agrees that, except for notices, reports and other documents expressly required
to be furnished to the Banks by the Agent hereunder or given to the Agent for
the account of or with copies for the Banks, the Agent and each of its
directors, officers, employees, agents, attorneys or Affiliates shall not have
any duty or responsibility to provide any Bank with an credit or other
information concerning the business, operations, property, condition (financial
or otherwise), prospects or creditworthiness of the Loan Parties which may come
into the possession of the Agent or any of its directors, officers, employees,
agents, attorneys or Affiliates.
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10.7 Reimbursement and Indemnification of Agent by Banks.
Each Bank agrees to reimburse and indemnify the Agent (to the extent not
reimbursed by the Borrowers and without limiting the Obligation of the Borrowers
to do so) in proportion to its Ratable Share from and against all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements, including attorneys' fees and disbursements
(including the allocated costs of staff counsel), and costs of appraisers and
environmental consultants, of any kind or nature whatsoever which may be imposed
on, incurred by or asserted against the Agent, in its capacity as such, in any
way relating to or arising out of this Agreement or any other Loan Documents or
any action taken or omitted by the Agent hereunder or thereunder, provided that
no Bank shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements (a) if the same results from the Agent's
gross negligence or willful misconduct, or (b) if such Bank was not given notice
of the subject claim and the opportunity to participate in the defense thereof,
at its expense (except that such Bank shall remain liable to the extent such
failure to give notice does not result in a loss to the Bank), or (c) if the
same results from a compromise and settlement agreement entered into without the
consent of such Bank, which shall not be unreasonably withheld. In addition,
each Bank agrees promptly upon demand to reimburse the Agent (to the extent not
reimbursed by the Borrowers and without limiting the Obligation of the Borrowers
to do so) in proportion to its Ratable Share for all amounts due and payable by
the Borrowers to the Agent in connection with the Agent's periodic audit of the
Loan Parties' books, records and business properties.
10.8 Reliance by Agent.
The Agent shall be entitled to rely upon any writing, telegram, telex or
teletype message, resolution, notice, consent, certificate, letter, cablegram,
statement, order or other document or conversation by telephone or otherwise
believed by it to be genuine and correct and to have been signed, sent or made
by the proper Person or Persons, and upon the advice and opinions of counsel and
other professional advisers selected by the Agent. The Agent shall be fully
justified in failing or refusing to take any action hereunder unless it shall
first be indemnified to its satisfaction by the Banks against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action.
10.9 Notice of Default.
The Agent shall not be deemed to have knowledge or notice of the
occurrence of any Unmatured Default or Event of Default unless the Agent has
received written notice from a Bank or the Borrowers referring to this
Agreement, describing such Unmatured Default or Event of Default and stating
that such notice is a "notice of default."
10.10 Notices.
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The Agent shall promptly send to each Bank a copy of all notices
received from the Borrowers pursuant to the provisions of this Agreement or the
other Loan Documents promptly upon receipt thereof. The Agent shall promptly
notify the Borrowers and the other Banks of each change in the Base Rate and the
effective date thereof.
10.11 Banks in Their Individual Capacities.
With respect to its Revolving Credit Commitment, the Revolving Credit
Loans, the Swing Line Loan Commitment and the Swing Line Loan made by it and any
other rights and powers given to it as a Bank hereunder or under any of the
other Loan Documents, the Agent shall have the same rights and powers hereunder
as any other Bank and may exercise the same as though it were not the Agent, and
the term "Banks" shall, unless the context otherwise indicates, include the
Agent in its individual capacity. PNC Bank and its Affiliates and each of the
Banks and their respective Affiliates may, without liability to account, except
as prohibited herein, make loans to, accept deposits from, discount drafts
for, act as trustee under indentures of, and generally engage in any kind of
banking or trust business with, the Loan Parties and their Affiliates, in the
case of the Agent, as though it were not acting as Agent hereunder and in the
case of each Bank, as though such Bank were not a Bank hereunder. The Banks
acknowledge that, pursuant to such activities, the Agent or its Affiliates may
(i) receive information regarding the Loan Parties (including information that
may be subject to confidentiality obligations in favor of the Loan Parties)
and acknowledge that the Agent shall be under no obligation to provide such
information to them, and (ii) accept fees and other consideration from the
Loan Parties for services in connection with this Agreement and otherwise
without having to account for the same to the Banks.
10.12 Holders of Notes.
The Agent may deem and treat any payee of any Note as the owner thereof
for all purposes hereof unless and until written notice of the assignment or
transfer thereof shall have been filed with the Agent. Any request, authority or
consent of any Person who at the time of making such request or giving such
authority or consent is the holder of any Note shall be conclusive and binding
on any subsequent holder, transferee or assignee of such Note or of any Note or
Notes issued in exchange therefor.
10.13 Equalization of Banks.
The Banks and the holders of any participations in any Notes agree among
themselves that, with respect to all amounts received by any Bank or any such
holder for application on any Obligation hereunder or under any Note or under
any such participation, whether received by voluntary payment, by realization
upon security, by the exercise of the right of set-off or banker's lien, by
counterclaim or by any other non-pro rata source, equitable adjustment will be
made in the manner stated in the following sentence so that, in effect, all such
excess amounts will be shared ratably among the Banks and such holders in
proportion to their interests in payments under the Notes, except as otherwise
provided in Section 4.5.3 [Agent's and Bank's Rights], 5.4.2 [Replacement of a
Bank] or 5.6 [Additional Compensation in Certain Circumstances]. The Banks or
any such holder receiving any such amount shall purchase for cash from each of
the other Banks an interest in such Bank's Loans in such amount as shall result
in a ratable participation by the Banks and each such holder in the aggregate
unpaid amount under the Notes, provided that if all or any portion of such
excess amount is thereafter recovered from the Bank or the holder making such
purchase, such purchase shall be rescinded and the purchase price restored to
the extent of such recovery, together with interest or other amounts, if any,
required by law (including court order) to be paid by the Bank or the holder
making such purchase.
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10.14 Successor Agent.
The Agent (i) may resign as Agent or (ii) shall resign if such
resignation is requested by the Required Banks (if the Agent is a Bank, the
Agent's Loans and its Commitment shall be considered in determining whether the
Required Banks have requested such resignation) or required by Section 5.4.2
[Replacement of a Bank], in either case of (i) or (ii) by giving not less than
thirty (30) days' prior written notice to the Borrower. If the Agent shall
resign under this Agreement, then either (a) the Required Banks shall appoint
from among the Banks a successor agent for the Banks, subject to the consent of
the Borrower, such consent not to be unreasonably withheld, or (b) if a
successor agent shall not be so appointed and approved within the thirty (30)
day period following the Agent's notice to the Banks of its resignation, then
the Agent shall appoint, with the consent of the Borrowers, such consent not to
be unreasonably withheld, a successor agent who shall serve as Agent until such
time as the Required Banks appoint and the Borrowers' consent to the appointment
of a successor agent. Upon its appointment pursuant to either clause (a) or (b)
above, such successor agent shall succeed to the rights, powers and duties
of the Agent, and the term "Agent" shall mean such successor agent, effective
upon its appointment, and the former Agent's rights, powers and duties as Agent
shall be terminated without any other or further act or deed on the part of
such former Agent or any of the parties to this Agreement. After the resignation
of any Agent hereunder, the provisions of this Section 10 shall inure to the
benefit of such former Agent and such former Agent shall not by reason of such
resignation be deemed to be released from liability for any actions taken or not
taken by it while it was an Agent under this Agreement.
10.15 Agent's Fee.
The Borrower shall pay to the Agent a nonrefundable fee (the "Agent's
Fee") under the terms of a letter (the "Agent's Letter") dated ___________, 1998
between the Borrower and Agent, as amended from time to time.
10.16 Availability of Funds.
The Agent may assume that each Bank has made or will make the proceeds
of a Loan available to the Agent unless the Agent shall have been notified by
such Bank on or before the later of (1) the close of Business on the Business
Day preceding the Borrowing Date with respect to such Loan or two (2) hours
before the time on which the Agent actually funds the proceeds of such Loan to
the Borrowers (whether using its own funds pursuant to this Section 10.16 or
using proceeds deposited with the Agent by the Banks and whether such funding
occurs before or after the time on which Banks are required to deposit the
proceeds of such Loan with the Agent). The Agent may, in reliance upon such
assumption (but shall not be required to), make available to the Borrowers a
corresponding amount. If such corresponding amount is not in fact made available
to the Agent by such Bank, the Agent shall be entitled to recover such amount on
demand from such Bank (or, if such Bank fails to pay such amount forthwith upon
such demand from the Borrower) together with interest thereon, in respect of
each day during the period commencing on the date such amount was made available
to the Borrowers and ending on the date the Agent recovers such amount, at a
rate per annum equal to (i) the Federal Funds Effective Rate during the first
three (3) days after such interest shall begin to accrue and (ii) the applicable
interest rate in respect of such Loan after the end of such three-day period.
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10.17 Calculations.
In the absence of gross negligence or willful misconduct, the Agent
shall not be liable for any error in computing the amount payable to any Bank
whether in respect of the Loans, fees or any other amounts due to the Banks
under this Agreement. In the event an error in computing any amount payable to
any Bank is made, the Agent, the Borrowers and each affected Bank shall,
forthwith upon discovery of such error, make such adjustments as shall be
required to correct such error, and any compensation therefor will be calculated
at the Federal Funds Effective Rate.
10.18 Beneficiaries.
Except as expressly provided herein, the provisions of this Section 10
are solely for the benefit of the Agent and the Banks, and the Loan Parties
shall not have any rights to rely on or enforce any of the provisions hereof. In
performing its functions and duties under this Agreement, the Agent shall act
solely as agent of the Banks and does not assume and shall not be deemed to have
assumed any obligation toward or relationship of agency or trust with or for any
of the Loan Parties.
11. MISCELLANEOUS
11.1 Modifications, Amendments or Waivers.
With the written consent of the Required Banks, the Agent, acting on
behalf of all the Banks, and the Borrower, on behalf of the Loan Parties, may
from time to time enter into written agreements amending or changing any
provision of this Agreement or any other Loan Document or the rights of the
Banks or the Loan Parties hereunder or thereunder, or may grant written waivers
or consents to a departure from the due performance of the Obligations of the
Loan Parties hereunder or thereunder, including, without limitation, making
modifications to the requirements of Section 8.1 [Affirmative Covenants] and 8.2
[Negative Covenants]. Any such agreement, waiver or consent made with such
written consent shall be effective to bind all the Banks and the Loan Parties;
provided, that, without the written consent of all the Banks, no such agreement,
waiver or consent may be made which will:
11.1.1 Increase of Commitment; Extension or Expiration Date.
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Increase the amount of the Revolving Credit Commitment of any
Bank hereunder or extend the Expiration Date;
11.1.2 Extension of Payment; Reduction of Principal Interest or
Fees; Modification of Terms of Payment.
Whether or not any Loans are outstanding, extend the time for
payment of principal or interest of any Loan (excluding the due date of any
mandatory prepayment of a Loan or any mandatory Commitment reduction in
connection with such a mandatory prepayment hereunder except for mandatory
reductions of the Commitments on the Expiration Date), the Commitment Fee or any
other fee payable to any Bank, or reduce the principal amount of or the rate of
interest borne by any Loan or reduce the Commitment Fee or any other fee payable
to any Bank, or otherwise affect the terms of payment of the principal of or
interest of any Loan, the Commitment Fee or any other fee payable to any Bank;
11.1.3 Miscellaneous.
Amend Section 5.2 [Pro Rata Treatment of Banks], 10.6
[Exculpatory Provisions; Limitation of Liability] or 10.13 [Equalization of
Banks] or this Section 11.1, alter any provision regarding the pro rata
treatment of the Banks, change the definition of Required Banks, or change any
requirement providing for the Banks or the Required Banks to authorize the
taking of any action hereunder; provided, further, that no agreement, waiver or
consent which would modify the interests, rights or obligations of the Agent in
its capacity as Agent or as the issuer of Letters of Credit shall be effective
without the written consent of the Agent.
11.2 No Implied Waivers; Cumulative Remedies; Writing Required.
No course of dealing and no delay or failure of the Agent or any Bank in
exercising any right, power, remedy or privilege under this Agreement or any
other Loan Document shall affect any other or future exercise thereof or operate
as a waiver thereof, nor shall any single or partial exercise thereof or any
abandonment or discontinuance of steps to enforce such a right, power, remedy or
privilege preclude any further exercise thereof or of any other right, power,
remedy or privilege. The rights and remedies of the Agent and the Banks under
this Agreement and any other Loan Documents are cumulative and not exclusive of
any rights or remedies which they would otherwise have. Any waiver, permit,
consent or approval of any kind or character on the part of any Bank of any
breach or default under this Agreement or any such waiver of any provision or
condition of this Agreement must be in writing and shall be effective only to
the extent specifically set forth in such writing.
11.3 Reimbursement and Indemnification of Banks by the Borrowers; Taxes.
The Borrowers jointly and severally agree unconditionally upon demand to
pay or reimburse to each Bank (other than the Agent, as to which the Borrowers'
Obligations are set forth in Section 10.5 [Reimbursement and Indemnification of
Agent by the Borrower]) and to save such Bank harmless against (i) liability for
the payment of all reasonable out-of-pocket costs, expenses and disbursements
(including fees and expenses of counsel for each Bank except with respect to (a)
and (b) below), incurred by such Bank (a) in connection with the administration
and interpretation of this Agreement, and other instruments and documents to be
delivered hereunder, (b) relating to any amendments, waivers or consents
pursuant to the provisions hereof, (c) in connection with the enforcement of
this Agreement or any other Loan Document, or collection of amounts due
hereunder or thereunder or the proof and allowability of any claim arising under
this Agreement or any other Loan Document, whether in bankruptcy or receivership
proceedings or otherwise, and (d) in any workout or restructuring or in
connection with the protection, preservation, exercise or enforcement of any of
the terms hereof or of any rights hereunder or under any other Loan Document or
in connection with any foreclosure, collection or bankruptcy proceedings, or
(ii) all liabilities,
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obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever which may be imposed
on, incurred by or asserted against such Bank, in its capacity as such, in any
way relating to or arising out of this Agreement or any other Loan Documents or
any action taken or omitted by such Bank hereunder or thereunder, provided that
the Borrowers shall not be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements (A) if the same results from such Bank's gross
negligence or willful misconduct, or (B) if the Borrowers were not given notice
of the subject claim and the opportunity to participate in the defense thereof,
at its expense (except that the Borrowers shall remain liable to the extent such
failure to give notice does not result in a loss to the Borrower), or (C) if the
same results from a compromise or settlement agreement entered into without the
consent of the Borrower, which shall not be unreasonably withheld. The Banks
will attempt to minimize the fees and expenses of legal counsel for the Banks
which are subject to reimbursement by the Borrowers hereunder by considering the
usage of one law firm to represent the Banks and the Agent if appropriate under
the circumstances. The Borrowers agree unconditionally to pay all stamp,
document, transfer, recording or filing taxes or fees and similar impositions
now or hereafter determined by the Agent or any Bank to be payable in connection
with this Agreement or any other Loan Document, and the Borrowers agree
unconditionally to save the Agent and the Banks harmless from and against any
and all present or future claims, liabilities or losses with respect to or
resulting from any omission to pay or delay in paying any such taxes, fees or
impositions.
11.4 Holidays.
Whenever payment of a Loan to be made or taken hereunder shall be due on
a day which is not a Business Day such payment shall be due on the next Business
Day and such extension of time shall be included in computing interest and fees,
except that the Loans shall be due on the Business Day preceding the Expiration
Date if the Expiration Date is not a Business Day. Whenever any payment or
action to be made or taken hereunder (other than payment of the Loans) shall be
stated to be due on a day which is not a Business Day, such payment or action
shall be made or taken on the next following Business Day (except as provided in
Section 4.3 [Interest Periods] with respect to Interest Periods under the
Euro-Rate Option), and such extension of time shall not be included in computing
interest or fees, if any, in connection with such payment or action.
11.5 Funding by Branch, Subsidiary or Affiliate.
11.5.1 Notional Funding.
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Each Bank shall have the right from time to time, without notice
to the Borrower, to deem any branch, Subsidiary or Affiliate (which for the
purposes of this Section 11.5 shall mean any corporation or association which is
directly or indirectly controlled by or is under direct or indirect common
control with any corporation or association which directly or indirectly
controls such Bank) of such Bank to have made, maintained or funded any Loan to
which the Euro-Rate Option applies at any time, provided that immediately
following (on the assumption that a payment were then due from the Borrowers to
such other office), and as a result of such change, the Borrowers would not
be under any greater financial obligation pursuant to Section 5.6 [Additional
Compensation in Certain Circumstances] than it would have been in the absence of
such change. Notional funding offices may be selected by each Bank without
regard to such Bank's actual methods of making, maintaining or funding the Loans
or any sources of funding actually used by or available to such Bank.
11.5.2 Actual Funding.
Each Bank shall have the right from time to time to make or
maintain any Loan by arranging for a branch, Subsidiary or Affiliate of such
Bank to make or maintain such Loan subject to the last sentence of this Section
11.5.2. If any Bank causes a branch, Subsidiary or Affiliate to make or maintain
any part of the Loans hereunder, all terms and conditions of this Agreement
shall, except where the context clearly requires otherwise, be applicable to
such part of the Loans to the same extent as if such Loans were made or
maintained by such Bank, but in no event shall any Bank's use of such a branch,
Subsidiary or Affiliate to make or maintain any part of the Loans hereunder
cause such Bank or such branch, Subsidiary or Affiliate to incur any cost or
expenses payable by the Borrowers hereunder or require the Borrowers to pay any
other compensation to any Bank (including any expenses incurred or payable
pursuant to Section 5.6 [Additional Compensation in Certain Circumstances])
which would otherwise not be incurred.
11.6 Notices.
All notices, requests, demands, directions and other communications (as
used in this Section 11.6, collectively referred to as "notices") given to or
made upon any party hereto under the provisions of this Agreement shall be by
telephone or in writing (including telex or facsimile communication) unless
otherwise expressly permitted hereunder and shall be delivered or sent by telex
or facsimile to the respective parties at the addresses and numbers set forth
under their respective names on Schedule 1.1(B) hereof or in accordance with any
subsequent unrevoked written direction from any party to the others. All notices
shall, except as otherwise expressly herein provided, be effective (a) in the
case of telex or facsimile, when received, (b) in the case of hand- delivered
notice, when hand-delivered, (c) in the case of telephone, when telephoned,
provided, however, that in order to be effective, telephonic notices must be
confirmed in writing no later than the next day by letter, facsimile or telex,
(d) if given by mail, four (4) days after such communication is deposited in the
mail with first-class postage prepaid, return receipt requested, and (e) if
given by any other means (including by air courier), when delivered; provided,
that notices to the Agent shall not be effective until received. Any Bank giving
any notice to any Loan Party shall simultaneously send a copy thereof to the
Agent, and the Agent shall promptly notify the other Banks of the receipt by it
of any such notice.
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11.7 Severability.
The provisions of this Agreement are intended to be severable. If any
provision of this Agreement shall be held invalid or unenforceable in whole or
in part in any jurisdiction, such provision shall, as to such jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without in any
manner affecting the validity or enforceability thereof in an other
jurisdiction or the remaining provisions hereof in any jurisdiction.
11.8 Governing Law.
Each Letter of Credit and Section 2.9 [Letter of Credit Subfacility]
shall be subject to the Uniform Customs and Practice for Documentary Credits
(1993 Revision), International Chamber of Commerce Publication No. 500, as the
same may be revised or amended from time to time, and to the extent not
inconsistent therewith, the internal laws of the Commonwealth of Kentucky
without regard to its conflict of laws principles and the balance of this
Agreement shall be deemed to be a contract under the Laws of the Commonwealth of
Kentucky and for all purposes shall be governed by and construed and enforced in
accordance with the internal laws of the Commonwealth of Kentucky without regard
to its conflict of laws principles.
11.9 No Prior Understanding.
This Agreement and the other Loan Documents supersede all prior
understandings and agreements, whether written or oral, between the parties
hereto and thereto relating to the transactions provided for herein and therein,
including any prior confidentiality agreements and commitments.
11.10 Duration; Survival.
All representations and warranties of the Loan Parties contained herein
or made in connection herewith shall survive the making of Loans and issuance of
Letters of Credit and shall not be waived by the execution and delivery of this
Agreement, any investigation by the Agent or the Banks, the making of Loans,
issuance of Letters of Credit, or payment in full of the Loans. All covenants
and agreements of the Loan Parties contained in Sections 8.1 [Affirmative
Covenants], 8.2 [Negative Covenants] and 8.3 [Reporting Requirements] herein
shall continue in full force and effect from and after the date hereof so long
as the Borrowers may borrow or request Letters of Credit hereunder and until
termination of the Commitments and payment in full of the Loans and expiration
or termination of all Letters of Credit. All covenants and agreements of the
Borrowers contained herein relating to the payment of principal, interest,
premiums, additional compensation or expenses and indemnification, including
those set forth in the Notes, Section 5 [Payments] and Sections 10.5
[Reimbursement and Indemnification of Agent by the Borrower], 10.7
[Reimbursement and Indemnification of Agent by the Banks] and 11.3
[Reimbursement and Indemnification of Banks by the Borrower], shall survive
payment in full of the Loans, expiration or termination of the Letters of Credit
and termination of the Commitments.
11.11 Successors and Assigns.
(i) This Agreement shall be binding upon and shall inure to the
benefit of the Banks, the Agent, the Loan Parties and their respective
successors and assigns, except that none of the Loan Parties may assign or
transfer any of its rights and Obligations hereunder or any interest
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herein. Each Bank may, at its own cost, make assignments of or sell
participations in all or any part of its Commitments and the Loans made by it to
one or more banks or other entities, subject to the consent of the Borrowers and
the Agent with respect to any assignee, such consent not to be unreasonably
withheld, provided that (1) no consent of the Borrowers shall be required (A) if
an Event of Default exists and is continuing, or (B) in the case of an
assignment by a Bank to an Affiliate of such Bank, and (2) any assignment by a
Bank to a Person other than an Affiliate of such Bank may not be made in amounts
less than the lesser of $10,000,000 or the amount of the assigning Bank's
Commitment. In the case of an assignment, upon receipt by the Agent of the duly
executed and delivered Assignment and Assumption Agreement, the assignee shall
have, to the extent of such assignment (unless otherwise provided therein), the
same rights, benefits and obligations as it would have if it had been a
signatory Bank hereunder, the Commitments shall be adjusted accordingly, and
upon surrender of any Note subject to such assignment, the Borrowers shall
execute and deliver a new Note to the assignee in an amount equal to the amount
of the Revolving Credit Commitment assumed by it and a new Revolving Credit Note
to the assigning Bank in an amount equal to the Revolving Credit Commitment
retained by it hereunder. Any Bank which assigns any or all of its Commitment or
Loans to a Person other than an Affiliate of such Bank and not the Borrowers
shall pay to the Agent a service fee in the amount of $2,000.00 for each
assignment. In the case of a participation, the participant shall only have the
rights specified in Section 9.2.3 [Set-off] (the participant's rights against
such Bank in respect of such participation to be those set forth in the
agreement executed by such Bank in favor of the participant relating thereto and
not to include any voting rights except with respect to changes of the type
referenced in Sections 11.1.1 [Increase of Commitment, Etc.], 11.1.2 [Extension
of Payment, Etc.], all of such Bank's obligations under this Agreement or any
other Loan Document shall remain unchanged, and all amounts payable by any Loan
Party hereunder or thereunder shall be determined as if such Bank had not sold
such participation.
Except when an Event of Default and/or an Unmatured Default has occurred
and is continuing, the Borrowers may suggest from time to time that the Banks
consider as a possible assignee and/or participant certain financial
institutions named by the Borrowers if and when any of the Banks exercise any
right or rights of assignment and/or participation under this Section. Upon
receiving a written notice from the Borrowers specifying one or more financial
institutions as a proposed assignee and/or participant any Bank(s) otherwise
proposing or considering an assignment and/or participation under this Section
shall (1) meet with the Borrowers at a time reasonably convenient to that Bank
(or those Banks) and the Borrowers, to discuss the financial institution or
institutions the Borrowers suggested, and (2) consider the financial
institutions suggested by the Borrowers. Nonetheless, such Bank(s) shall not be
obliged to assign or participate any interest in the Loans and/or the Revolving
Credit. Rather, such Bank will be entitled to make such decision in its
reasonable discretion. In any event, all of the terms, conditions and other
provisions of any such assignment and/or participation would have to be
satisfactory to such Bank and the Agent.
(ii) Any assignee or participant which is not incorporated under
the Laws of the United States of America or a state thereof shall deliver to the
Borrowers and the Agent the form of certificate described in Section 11.17 [Tax
Withholding Clause] relating to federal income tax
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withholding. Each Bank may furnish any publicly available information concerning
any Loan Party or its Subsidiaries and any other information concerning any Loan
Party or its Subsidiaries in the possession of such Bank from time to time to
assignees and participants (including prospective assignees or participants),
provided that such assignees and participants agree to be bound by the
provisions of Section 11.12 [Confidentiality].
(iii) Notwithstanding any other provision in this Agreement, any
Bank may at any time pledge or grant a security interest in all or any portion
of its rights under this Agreement, its Note and the other Loan Documents to any
Federal Reserve Bank in accordance with Regulation A of the FRB or U.S. Treasury
Regulation 31 CFR Section 203.14 without notice to or consent of the Borrowers
or the Agent. No such pledge or grant of a security interest shall release the
transferor Bank of its obligations hereunder or under any other Loan Document.
11.12 Confidentiality.
11.12.1 General.
The Agent and the Banks each agree to keep confidential all
information obtained from any Loan Party or its Subsidiaries which is nonpublic
and confidential or proprietary in nature (including any information the
Borrowers specifically designates as confidential), except as provided below,
and to use such information only in connection with their respective capacities
under this Agreement and for the purposes contemplated hereby. The Agent and the
Banks shall be permitted to disclose such information (i) to outside legal
counsel, accountants and other professional advisors who need to know such
information in connection with the administration and enforcement of this
Agreement, subject to agreement of such Persons to maintain the confidentiality,
(ii) subject to the confidentiality provisions herein to assignees and
participants as contemplated by Section 11.11 [Successors and Assigns], (iii) to
the extent requested by any bank regulatory authority or, with notice to the
Borrower, as otherwise required by applicable Law or by any subpoena or similar
legal process, or in connection with any investigation or proceeding arising out
of the transactions contemplated by this Agreement, (iv) if it becomes publicly
available other than as a result of a breach of this Agreement or becomes
available from a source not known to be subject to confidentiality restrictions,
or (v) if the Borrowers shall have consented to such disclosure.
11.12.2 Sharing Information With Affiliates of the Banks.
Each Loan Party acknowledges that from time to time financial
advisory, investment banking and other services may be offered or provided to
the Borrowers or one or more of its Affiliates (in connection with this
Agreement or otherwise) by any Bank or by one or more Subsidiaries or Affiliates
of such Bank and each of the Loan Parties hereby authorizes each Bank to share
any information delivered to such Bank by such Loan Party and its Subsidiaries
pursuant to this Agreement, or in connection with the decision of such Bank to
enter into this Agreement, to any such Subsidiary or Affiliate of such Bank, it
being understood that any such Subsidiary or Affiliate of any Bank receiving
such information shall be bound by the provisions of Section 11.12
[Confidentiality] as if it were a Bank hereunder. Such Authorization shall
survive the repayment of
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the Loans and other Obligations and the termination of the Commitments.
11.13 Counterparts.
(a) This Agreement may be signed by each party upon a separate copy, and
in such case one counterpart of this Agreement shall consist of enough of such
copies to reflect the signature of each party.
(b) This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, and it shall not be necessary in making proof
of this Agreement or the terms thereof to produce or account for more than one
such counterparts.
11.14 Agent's or Bank's Consent.
Whenever the Agent's or any Bank's consent is required to be obtained
under this Agreement or any of the other Loan Documents as a condition to any
action, inaction, condition or event, the Agent and each Bank shall be
authorized to give or withhold such consent in its sole and absolute discretion
and to condition its consent upon the giving of additional collateral, the
payment of money or any other matter.
11.15 Exceptions.
The representations, warranties and covenants contained herein shall be
independent of each other, and no exception to any representation, warranty or
covenant shall be deemed to be an exception to any other representation,
warranty or covenant contained herein unless expressly provided, nor shall any
such exceptions be deemed to permit any action or omission that would be in
contravention of applicable Law.
11.16 CONSENT TO FORUM; WAIVER OF JURY TRIAL.
EACH LOAN PARTY HEREBY IRREVOCABLY CONSENTS TO THE NONEXCLUSIVE
JURISDICTION OF THE CIRCUIT COURT OF JEFFERSON COUNTY AND THE UNITED STATES
DISTRICT COURT FOR THE WESTERN DISTRICT OF KENTUCKY, AND WAIVES PERSONAL SERVICE
OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE
MADE BY CERTIFIED OR REGISTERED MAIL DIRECTED TO SUCH LOAN PARTY AT THE
ADDRESSES PROVIDED FOR IN SECTION 11.6 AND SERVICE SO MADE SHALL BE DEEMED TO BE
COMPLETED UPON ACTUAL RECEIPT THEREOF.
EACH LOAN PARTY WAIVES ANY OBJECTION TO JURISDICTION AND VENUE OF ANY
ACTION INSTITUTED AGAINST IT AS PROVIDED HEREIN AND AGREES NOT TO ASSERT ANY
DEFENSE BASED ON LACK OF JURISDICTION OR VENUE.
EACH LOAN PARTY HEREBY AGREES TO WAIVE ITS RIGHT TO A JURY
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TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT, THE REVOLVING CREDIT NOTES, THE SWING LINE NOTE OR THE OTHER LOAN
DOCUMENTS. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY
AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT THAT RELATE TO THE SUBJECT
MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT
CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.
THE LOAN PARTIES ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH
SUCH PARTY TO ENTER INTO A BUSINESS RELATIONSHIP, AND THAT EACH LOAN PARTY HAS
ALREADY RELIED ON THE WAIVER IN ITS RELATED FUTURE DEALINGS WITH THE OTHERS. THE
LOAN PARTIES FURTHER WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS WAIVER
WITH ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY
TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING,
AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS
OR MODIFICATIONS TO THIS AGREEMENT, THE REVOLVING CREDIT NOTES, THE SWING LINE
NOTE OR THE OTHER LOAN DOCUMENTS. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY
BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.
11.17 Tax Withholding Clause.
Each Bank or assignee or participant of a Bank that is not incorporated
under the Laws of the United States of America or a state thereof agrees that it
will deliver to each of the Borrowers and the Agent two (2) duly completed
copies of the following: (i) Internal Revenue Service Form W-9, 4224 or 1001, or
other applicable form prescribed by the Internal Revenue Service, certifying
that such Bank, assignee or participant is entitled to receive payments under
this Agreement and the other Loan Documents without deduction or withholding of
any United States federal income taxes, or is subject to such tax at a reduced
rate under an applicable tax treaty, or (ii) Internal Revenue Service Form W-8
or other applicable form or a certificate of such Bank, assignee or participant
indicating that no such exemption or reduced rate is allowable with respect to
such payments. Each Bank, assignee or participant required to deliver to the
Borrowers and the Agent a form or certificate pursuant to the preceding sentence
shall deliver such form or certificate as follows: (A) each Bank which is a
party hereto on the Closing Date shall deliver such form or certificate at least
five (5) Business Days prior to the first date on which any interest or fees are
payable by the Borrowers hereunder for the account of such Bank; (B) each
assignee or participant shall deliver such form or certificate at least five (5)
Business Days before the effective date of such assignment or participation
(unless the Agent in its sole discretion shall permit such assignee or
participant to deliver such form or certificate less than five (5) Business Days
before such date in which case it shall be due on the date specified by the
Agent). Each Bank, assignee or participant which so delivers a Form W-8, W-9,
4224 or 1001 further undertakes to deliver to each of the Borrowers and
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the Agent two (2) additional copies of such form (or a successor form) on or
before the date that such form expires or becomes obsolete or after the
occurrence of any event requiring a change in the most recent form so delivered
by it, and such amendments thereto or extensions or renewals thereof as may be
reasonably requested by the Borrowers or the Agent, either certifying that such
Bank, assignee or participant is entitled to receive payments under this
Agreement and the other Loan Documents without deduction or withholding of any
United States federal income taxes or is subject to such tax at a reduced rate
under an applicable tax treaty or stating that no such exemption or reduced rate
is allowable. The Agent shall be entitled to withhold United States federal
income taxes at the full withholding rate unless the Bank, assignee or
participant establishes an exemption or that it is subject to a reduced rate as
established pursuant to the above provisions.
11.18 Joinder of New Subsidiaries.
Any Subsidiary of the Borrowers which is required to join this Agreement
as a Borrower pursuant to Section 8.2.5 [Liquidations, Mergers, Consolidations,
Acquisitions] and/or 8.2.8 [Subsidiaries, Partnerships and Joint Ventures] shall
execute and deliver to the Agent (i) a Joinder Agreement in substantially the
form attached hereto as Exhibit 1.1(G)(1) pursuant to which it shall join as a
Borrower each of the documents to which the Borrowers are parties; and (ii)
documents in the forms described in Section 7.1 [First Loans and Letters of
Credit] modified as appropriate to relate to such Subsidiary. The Loan Parties
shall deliver such Joinder Agreement to the Agent within five (5) Business Days
after the date of the filing of such Subsidiary's articles of incorporation if
the Subsidiary is a corporation, the date of the filing of its certificate of
limited partnership if it is a limited partnership or the date of its
organization if it is an entity other than a limited partnership or corporation,
or the closing date of an acquisition agreement in the case of a Permitted
Acquisition.
11.19 No Joint Venture.
Notwithstanding anything to the contrary herein contained or implied,
neither the Agent, the Guarantor, nor the other Lenders, by this Agreement, or
by any action pursuant hereto, shall not be deemed to be a partner of, or a
joint venturer with any other party.
11.20 Indemnification.
The Borrowers agree to indemnify the Agent, the Banks, and their
permitted successors and assigns (including any assignee and/or purchaser of any
participation in the Loans), and their directors, officers and employees,
against all losses, claims, costs, damages, liabilities and expenses, including,
without limitation, all expense of litigation or preparation therefore (a
"Loss"), which it may pay or incur in connection with or arising out of the
making of any Loans hereunder and/or the operations of the Borrowers. Without
limiting the generality of the foregoing, the Borrowers agree to indemnify and
hold harmless the Agent, the Banks and their successors and assigns (including
any purchaser of a participation in the Loans) and their directors, officers and
employees from and against any Loss which any of them may pay or incur in
investigating, preparing for, defending against, or providing evidence,
producing documents or taking any other action in respect of any commenced or
threatened litigation, administrative proceeding or investigation or
investigation
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under any federal, state and/or local law, rule or regulation.
11.21 Survival of Covenants.
All covenants, agreements, warranties and representations made by the
Borrowers herein shall survive the making of the Loans and any modifications,
extensions or renewals thereof, and the execution and delivery of the Loan
Documents.
11.22 No Course of Dealing.
No course of dealing between the Borrowers and the Agent or the Banks
shall operate as a waiver of any of the Agent's or the other Banks' rights under
any of the Loan Documents.
11.23 Time of the Essence.
Time shall be of the essence in the performance of all of the Borrowers'
obligations under the Loan Documents.
11.24 Further Assurances.
The Borrowers shall sign such documents or instruments and/or take such
other action as the Agent and the Banks may reasonably request from time to time
more fully to create, perfect, continue, maintain or terminate the rights
intended to be granted or created pursuant to this Agreement.
11.25 Incorporation by Reference.
All schedules, annexes or other attachments to this Agreement are
incorporated into this Agreement as if set out in full at the first place in
this Agreement that reference is made thereto.
11.26 Entire Agreement.
This Agreement, the exhibits and annexes hereto, and the documents and
instruments referred to herein constitute the entire agreement of the parties
with respect to the subject matter hereof, and supersede all prior
understandings with respect to the subject matter hereof. No change,
modification, addition or termination of this Agreement or any of the Loan
Documents shall be enforceable unless in writing and signed by the party against
whom enforcement is sought.
11.27 Joint and Several Liability; Certain Limitations.
The obligations of all of the Loan Parties under the Loan Documents are
joint and several, provided that the obligations of each Borrower other than
Xxxxxxxxx Xxxxx Incorporated, and each Subsidiary that becomes a Borrower
pursuant to Section 11.18 shall be limited to an amount not to exceed the
greater of (1) the aggregate benefit received by such Borrower and/or
Subsidiary; (2) ninety-five percent (95%) of the net worth of that Borrower
and/or Subsidiary on the date it becomes
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a party to this Agreement; or (3) ninety-five percent (95%) of the net worth of
that Borrower and/or Subsidiary as of the date of an Event of Default leading to
the exercise of remedies by the Banks. The foregoing limitations shall not be
applicable to Xxxxxxxxx Downs Incorporated, whose obligations shall not be
limited.
11.29 Acknowledgment.
The Borrowers acknowledge that they have received a copy of this
Agreement and each of the other Loan Documents, as fully executed by the parties
thereto. The Borrowers acknowledge that the Borrowers (a) have READ THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS OR HAVE CAUSED SUCH DOCUMENTS TO BE
EXAMINED BY THE BORROWERS' OR THE GUARANTORS' REPRESENTATIVES OR ADVISORS; (b)
are thoroughly familiar with the transactions contemplated in this Agreement and
the other Loan Documents; and (c) have had the opportunity to ask such questions
to representatives of the Banks, and receive answers thereto, concerning the
terms and conditions of the transactions contemplated in this Agreement and the
other Loan Documents as the Borrowers deem necessary in connection with their
decision to enter into this Agreement.
IN WITNESS WHEREOF, the parties hereto, by their officers thereunto duly
authorized, have executed this Agreement as of the date set out in the preamble
of this Agreement.
XXXXXXXXX XXXXX INCORPORATED
By _______________________________
Title: _____________________________
Date: _____________________________
XXXXXXXXX DOWNS MANAGEMENT
COMPANY
By _________________________________
Title:______________________________
Date: ______________________________
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XXXXXXXXX XXXXX INVESTMENT
COMPANY
By ________________________________
Title: _____________________________
Date: ______________________________
RACING CORPORATION OF AMERICA
By ________________________________
Title: _____________________________
Date: ______________________________
ELLIS PARK RACE COURSE, INC.
By _______________________________
Title: _____________________________
Date: _____________________________
PNC BANK, NATIONAL ASSOCIATION,
individually and as Agent
By ______________________________
Title: ____________________________
Date: _____________________________
BANK ONE, KENTUCKY, NA
By ________________________________
Title: ___________________________
Date: ______________________________
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STAR BANK, NATIONAL ASSOCIATION
By ________________________________
Title: _____________________________
Date: ______________________________
BANK OF LOUISVILLE
By ______________________________
Title: ____________________________
Date: _____________________________
THE CITIZENS NATIONAL BANK OF
EVANSVILLE
By ______________________________
Title: ____________________________
Date: _____________________________
SUNTRUST BANK, NASHVILLE, N.A.
By ______________________________
Title: ____________________________
Date: _____________________________
XXXXX FARGO BANK, N.A.
By ______________________________
Title: ____________________________
Date: _____________________________
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SCHEDULE 1.1(B)
COMMITMENTS OF BANKS AND ADDRESSES FOR NOTICES
Page 1 of 3
Part 1 - Commitments of Banks and Addresses for Notices to Banks
Amount of
Commitment
for Revolving
Bank Credit Loans Commitment Ratable Share
PNC Bank, National Association
Citizens Plaza $30,000,000 $30,000,000 30%
000 Xxxx Xxxxxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000-0000
Attn: Xxxxx X. Xxxxxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
PNC Bank, National Association
One PNC Plaza
000 0xx Xxxxxx
Xxxxxxxxxx, XX 00000
Attn: Xxxxxx Xxxxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Bank One, Kentucky, NA
000 Xxxx Xxxxxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000
Attn: H. Xxxxxx Xxxxxxx $17,000,000 $17,000,000 17%
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Star Bank, NA
000 Xxxxxx Xxxxxx, X.X. 0000
Xxxxxxxxxx, XX 00000-0000
$17,000,000 $17,000,000 17%
Attn: Xxxxxxx X. Xxxxxxx, V.P.
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Bank of Louisville
000 Xxxx Xxxxxxxx
0xx Xxxxx
Xxxxxxxxxx, XX 00000 $9,000,000 $9,000,000 9%
Attn: Xxxx Xxxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
The Citizens National Bank of
Evansville
00 X.X. 0xx Xxxxxx
Xxxxxxxxxx, XX 00000
$9,000,000 $9,000,000 9%
Attn: Xxxxxx Xxxxxxxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
SunTrust Bank, Nashville, N.A.
000 Xxxxxx Xxxxxx Xxxxx
Xxxxxxxxx, XX 00000 $9,000,000 $9,000,000 9%
Attn: Xxxxx X. Xxxxxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Xxxxx Fargo Bank
0000 Xxxxxx Xxxxxx Xxxx
0xx Xxxxx
Xxx Xxxxx, XX 00000 $9,000,000 $9,000,000 9%
Attn: Xxxxx Xxxxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Total $100,000,000 $100,000,000 100%
SCHEDULE 1.1(B)
COMMITMENTS OF BANKS AND ADDRESSES FOR NOTICES
Page 2 of 3
Part 2 - Addresses for Notices to Agent and Borrowers:
AGENT
Name: PNC Bank, National Association
Address: 000 Xxxx Xxxxxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000-0000
Attention: Xxxxx X. Xxxxxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
BORROWERS:
Name: Xxxxxxxxx Downs Incorporated
Address: 000 Xxxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000
Attention: Xxxxxx X. Xxxxxx
Telephone: (000) 000-0000
Telecopy: (000) 000-0000
Name: Xxxxxxxxx Downs Management Company
Address: 000 Xxxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000
Attention: Xxxxxx X. Xxxxxx
Telephone: (000) 000-0000
Telecopy: (000) 000-0000
SCHEDULE 1.1(B)
COMMITMENTS OF BANKS AND ADDRESSES FOR NOTICES
Page 3 of 3
Name: Xxxxxxxxx Downs Investment Company
Address: 000 Xxxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000
Attention: Xxxxxx X. Xxxxxx
Telephone: (000) 000-0000
Telecopy: (000) 000-0000
Name: Racing Corporation of America
Address: 000 Xxxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000
Attention: Xxxxxx X. Xxxxxx
Telephone: (000) 000-0000
Telecopy: (000) 000-0000
Name: Ellis Park Race Course, Inc.
Address: 000 Xxxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000
Attention: Xxxxxx X. Xxxxxx
Telephone: (000) 000-0000
Telecopy: (000) 000-0000