Exhibit 4.6
REVOLVING CREDIT AGREEMENT
THIS REVOLVING CREDIT AGREEMENT, dated as of December 20, 2005, among the
following:
(I) OM GROUP, INC., a Delaware corporation (herein, together with its
successors and assigns, the "BORROWER");
(II) the lending institutions signatory hereto (each a "LENDER" and
collectively, the "LENDERS"); and
(III) NATIONAL CITY BANK, a national banking association, as a Lender,
the Swing Line Lender, the Letter of Credit Issuer, and as the
administrative agent (the "ADMINISTRATIVE AGENT"), the collateral agent
(the "COLLATERAL AGENT"), book running manager (the "BOOK RUNNING
MANAGER"), and lead arranger (the "LEAD ARRANGER"):
PRELIMINARY STATEMENTS:
(1) Unless otherwise defined herein, all capitalized terms used herein and
defined in section 1 are used herein as so defined.
(2) The Borrower has applied to the Lenders for revolving credit facilities
in an aggregate amount of $100,000,000 to refinance certain existing
indebtedness, to support working capital needs, and for general corporate
purposes.
(3) Subject to and upon the terms and conditions set forth herein, the
Lenders are willing to make available to the Borrower the credit facility
provided for herein.
NOW, THEREFORE, the parties hereto agree as follows:
SECTION 1. DEFINITIONS AND TERMS
1.1. CERTAIN DEFINED TERMS. As used herein, the following terms shall have
the meanings herein specified unless the context otherwise requires.
"ACQUISITION" shall mean and include (i) any acquisition on a going concern
basis (whether by purchase, lease or otherwise) of any facility and/or business
operated by any Person who is not a Subsidiary of the Borrower, and (ii)
acquisitions of a majority of the outstanding equity or other similar interests
in any such Person (whether by merger, stock purchase or otherwise).
"ADDITIONAL SECURITY DOCUMENT" shall have the meaning provided in section
8.12(b).
"ADMINISTRATIVE AGENT" shall have the meaning provided in the first
paragraph of this Agreement and shall include any successor to the
Administrative Agent appointed pursuant to section 11.9.
"ADMINISTRATIVE QUESTIONNAIRE" means an Administrative Questionnaire in a
form supplied by the Administrative Agent.
"AFFILIATE" shall mean, with respect to any Person, any other Person
directly or indirectly controlling, controlled by, or under direct or indirect
common control with such Person, or, in the case of any Lender which is an
investment fund, the investment advisor thereof and any investment fund having
the same investment advisor. A Person shall be deemed to control a second Person
if such first Person possesses, directly or indirectly, the power (i) to vote
20% or more of the securities having ordinary voting power for the election of
directors or managers of such second Person or (ii) to direct or cause the
direction of the management and policies of such second Person, whether
through the ownership of voting securities, by contract or otherwise.
Notwithstanding the foregoing, (x) a director, officer or employee of a Person
shall not, solely by reason of such status, be considered an Affiliate of such
Person; and (y) neither the Administrative Agent nor any Lender shall in any
event be considered an Affiliate of the Borrower or any other Credit Party or
any of their respective Subsidiaries.
"AGREEMENT" shall mean this Revolving Credit Agreement, as the same may be
from time to time further modified, amended, restated, amended and restated
and/or supplemented.
"ALTERNATIVE CURRENCY" shall mean and include (i) Euros, if at the time
such currency is readily and freely transferable and convertible into Dollars,
and (ii) any other lawful currency other than Dollars that is readily and freely
transferable and convertible into Dollars and is acceptable to the Lenders and
any applicable Letter of Credit Issuer.
"ALTERNATIVE CURRENCY SUBLIMIT" shall mean $25,000,000.
"AIRCRAFT LEASE" shall mean the lease between the Borrower and G.E. Capital
dated as of September 28, 2000 with respect to the Borrower's corporate
aircraft.
"ANTI-TERRORISM LAW" means the USA Patriot Act or any other law pertaining
to the prevention of future acts of terrorism, in each case as such law may be
amended from time to time.
"APPLICABLE COMMITMENT FEE" shall mean a rate per annum set forth in the
Pricing Grid in section 2.7(g).
"APPLICABLE EUROCURRENCY MARGIN" shall have the meaning provided in section
2.7(g).
"APPLICABLE LENDING OFFICE" shall mean, with respect to each Lender, (i)
such Lender's Domestic Lending Office in the case of Borrowings consisting of
Prime Rate Loans and (ii) such Lender's Eurocurrency Lending Office in the case
of Borrowings consisting of Eurocurrency Loans, and (iii) in the case of
Borrowings from the Swing Line Lender which consist of Money Market Rate Loans,
the Domestic Lending Office of the Swing Line Lender.
"APPLICABLE PRIME RATE MARGIN" shall have the meaning provided in section
2.7(g).
"ASSET SALE" shall mean, with respect to any Person, any sale, lease,
transfer or other disposition by such Person (including a consolidation or
merger or other sale of any Subsidiary of such Person with, into or to any other
Person in a transaction in which such Subsidiary ceases to be a Subsidiary) of
(i) all or substantially all of the assets of any division or line of business
of such Person or any of its Subsidiaries, (ii) any manufacturing or processing
plant or facility of such Person or any of its Subsidiaries, (iii) shares of
capital stock or other equity interests (or any options, warrants or rights to
acquire any such shares or other equity interests) of a Subsidiary, with the
result that the Borrower's fully diluted direct and indirect percentage
ownership interest in such Subsidiary is reduced, including any such transaction
resulting in such Subsidiary ceasing to be a Subsidiary, or effected by means of
a liquidation of a corporation, partnership or limited liability company which
is not a Wholly-Owned Subsidiary, or (iv) other non-cash assets or rights of
such Person or any Subsidiary outside the ordinary course of business, PROVIDED
that the term Asset Sale specifically excludes (x) any sales, transfers or other
dispositions of inventory, or obsolete or excess furniture, fixtures, equipment
or other property, real or personal, tangible or intangible, in each case in the
ordinary course of business, (y) any Event of Loss, and (z) any sale of
marketable securities in the ordinary course of business. The term Asset Sale
specifically includes any Sale and Lease-Back Transaction.
"ASSIGNMENT AND ASSUMPTION" means an assignment and assumption entered into
by a Lender and an Eligible Assignee (with the consent of any party whose
consent is required by section 12.4), and accepted by the Administrative Agent,
in substantially the form of Exhibit C or any other form approved by the
Administrative Agent.
"AUTHORIZED OFFICER" shall mean any officer or employee of the Borrower
designated as such in writing to the Administrative Agent by the Borrower.
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"BANKRUPTCY CODE" shall have the meaning provided in section 10.1(h).
"BASKET INVESTMENTS AND GUARANTEES" has the meaning provided in section
9.5(n).
"BORROWER" shall have the meaning provided in the first paragraph of this
Agreement.
"BORROWING" shall mean a Revolving Borrowing or a Swing Line Borrowing, as
the case may be.
"BUSINESS DAY" shall mean (i) for all purposes other than as covered by
clause (ii) below, any day excluding Saturday, Sunday and any day which shall be
in the city in which the applicable Payment Office is located a legal holiday or
a day on which banking institutions are authorized by law or other governmental
actions to close and (ii) with respect to all notices and determinations in
connection with, and payments of principal and interest on, Eurocurrency Loans,
any day which is a Business Day described in clause (i) and which is also a day
on which dealings are carried on in the London interbank market and banks are
open for business in London and in the country of issue of any Alternative
Currency in which any applicable Eurocurrency Loans are denominated.
"CAPITAL LEASE" as applied to any Person shall mean any lease of any
property (whether real, personal or mixed) by that Person as lessee which, in
conformity with GAAP, is accounted for as a capital lease on the balance sheet
of that Person.
"CAPITALIZED LEASE OBLIGATIONS" shall mean all obligations under Capital
Leases of the Borrower or any of its Subsidiaries in each case taken at the
amount thereof accounted for as liabilities identified as "capital lease
obligations" (or any similar words) on a consolidated balance sheet of the
Borrower and its Subsidiaries prepared in accordance with GAAP.
"CASH EQUIVALENTS" shall mean any of the following:
(i) securities issued or directly and fully guaranteed or insured by
the United States of America or any agency or instrumentality thereof
(PROVIDED that the full faith and credit of the United States of America is
pledged in support thereof) having maturities of not more than one year
from the date of acquisition;
(ii) U.S. dollar denominated time deposits, certificates of deposit
and bankers' acceptances of (x) any Lender or (y) any bank whose short-term
commercial paper rating from S&P is at least A-1 or the equivalent thereof
or from Xxxxx'x is at least P-1 or the equivalent thereof (any such bank,
an "APPROVED BANK"), in each case with maturities of not more than three
months from the date of acquisition;
(iii) commercial paper issued by any Lender or Approved Bank or by the
parent company of any Lender or Approved Bank and commercial paper issued
by, or guaranteed by, any industrial or financial company with a short-
term commercial paper rating of at least A-1 or the equivalent thereof by
S&P or at least P-1 or the equivalent thereof by Moody's, or guaranteed by
any industrial company with a long term unsecured debt rating of at least A
or A2, or the equivalent of each thereof, from S&P or Moody's, as the case
may be, and in each case maturing within 90 days after the date of
acquisition;
(iv) fully collateralized repurchase agreements entered into with any
Lender or Approved Bank having a term of not more than 30 days and covering
securities described in clause (i) above;
(v) investments in money market funds substantially all the assets of
which are comprised of securities of the types described in clauses (i)
through (iv) above;
(vi) investments in money market funds access to which is provided as
part of "sweep" accounts maintained with a Lender or an Approved Bank;
(vii) investments in industrial development revenue bonds which (A)
"re-set" interest rates not less frequently than quarterly, (B) are
entitled to the benefit of a remarketing arrangement with an
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established broker dealer, and (C) are supported by a direct pay letter of
credit covering principal and accrued interest which is issued by an
Approved Bank;
(viii) investments in pooled funds or investment accounts consisting
of investments of the nature described in the foregoing clause (vii); and
(ix) in the case of any Foreign Subsidiary only, short term deposits,
certificates of deposit, repurchase agreements and similar financial
instruments, in any currency, with or issued by any local or international
financial institution with undivided capital and surplus of at least
$350,000,000 (or the equivalent in any applicable currency).
"CASH FLOW COVERAGE RATIO" shall mean, for any Testing Period, the ratio of
(x) Consolidated EBITDA for such Testing Period,
TO
(y) the sum of (A) Consolidated Interest Expense and (B) Consolidated
Capital Expenditures (other than any capital expenditures which are funded
with the proceeds of Indebtedness permitted hereunder (other than Revolving
Loans)), for such Testing Period.
"CASH PROCEEDS" shall mean, with respect to (i) any Asset Sale, the
aggregate cash payments (including any cash received by way of deferred payment
pursuant to a note receivable issued in connection with such Asset Sale, other
than the portion of such deferred payment constituting interest, but only as and
when so received) received by the Borrower and/or any Subsidiary from such Asset
Sale, and (ii) any Event of Loss, the aggregate cash payments, including all
insurance proceeds and proceeds of any award for condemnation or taking,
received in connection with such Event of Loss.
"CERCLA" shall mean the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, as the same may be amended from time to time, 42
U.S.C. Section 9601 ET SEQ.
"CHANGE OF CONTROL" shall mean and include any of the following:
(I) during any period of two consecutive calendar years, individuals
who at the beginning of such period constituted the Borrower's Board of
Directors (together with any new directors (x) whose election by the
Borrower's Board of Directors was, or (y) whose nomination for election by
the Borrower's shareholders was (prior to the date of the proxy or consent
solicitation relating to such nomination), approved by a vote of at least
two-thirds of the directors then still in office who either were directors
at the beginning of such period or whose election or nomination for
election was previously so approved), shall cease for any reason to
constitute a majority of the directors then in office;
(II) any Person or group (as such term is defined in section 13(d)(3)
of the 0000 Xxx) shall acquire, directly or indirectly, beneficial
ownership (within the meaning of Rule 13d-3 and 13d-5 of the 0000 Xxx) of
more than 50%, on a fully diluted basis, of the economic or voting interest
in the Borrower's capital stock;
(III) the shareholders of the Borrower approve a merger or
consolidation of the Borrower with any other Person, OTHER than a merger or
consolidation which would result in the voting securities of the Borrower
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted or exchanged for voting
securities of the surviving or resulting entity) more than 50% of the
combined voting power of the voting securities of the Borrower or such
surviving or resulting entity outstanding after such merger or
consolidation;
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(IV) the shareholders of the Borrower approve a plan of complete
liquidation of the Borrower or an agreement or agreements for the sale or
disposition by the Borrower of all or substantially all of the Borrower's
assets; and/or
(V) any "change in control" or any similar term as defined in any of
the indentures, credit agreements or other instruments governing any
Indebtedness of the Borrower or any of its Subsidiaries with an outstanding
principal amount, or providing for commitments to lend in an outstanding
principal amount, of at least $10,000,000 (or the equivalent amount in any
other currency).
"CHARGES" has the meaning provided in section 12.25.
"CIP REGULATIONS" has the meaning provided in section 11.11.
"CLOSING DATE" shall mean the date, on or after the Effective Date, upon
which the conditions specified in section 6.1 are satisfied.
"CODE" shall mean the Internal Revenue Code of 1986, as amended from time
to time, and the regulations promulgated and the rulings issued thereunder.
Section references to the Code are to the Code, as in effect at the Effective
Date and any subsequent provisions of the Code, amendatory thereof, supplemental
thereto or substituted therefor.
"COLLATERAL" shall mean any collateral covered by any Security Document.
"COLLATERAL AGENT" shall mean the Administrative Agent acting as Collateral
Agent for the Lenders pursuant to the Security Documents.
"COLLATERAL ASSIGNMENT OF PATENTS" shall mean each collateral assignment of
patents substantially in the form of Exhibit D-1, executed and delivered in
connection herewith, as the same may be amended, restated, amended and restated,
supplemented or otherwise modified from time to time.
"COLLATERAL ASSIGNMENT OF TRADEMARKS" shall mean each collateral assignment
of trademarks substantially in the form of Exhibit D-2, heretofore or hereafter
executed and delivered in connection herewith, as the same may be amended,
restated, amended and restated, supplemented or otherwise modified from time to
time.
"COMMITMENT" shall mean, with respect to each Lender, its Revolving
Commitment and its Swing Line Commitment, if any, or either or both of such
Commitments of a Lender, as applicable.
"COMMITMENT FEE" shall have the meaning provided in section 4.1(a).
"CONFIDENTIAL INFORMATION" has the meaning provided in section 12.15(b).
"CONSOLIDATED AMORTIZATION EXPENSE" shall mean, for any period, all
amortization expenses of the Borrower and its Subsidiaries, all as determined
for the Borrower and its Subsidiaries on a consolidated basis in accordance with
GAAP.
"CONSOLIDATED CAPITAL EXPENDITURES" shall mean, for any period, the
aggregate of all expenditures (whether paid in cash or accrued as liabilities
and including in all events amounts expended or capitalized under Capital Leases
and Synthetic Leases but excluding any amount representing capitalized interest)
by the Borrower and its Subsidiaries during that period that, in conformity with
GAAP, are or are required to be included in the property, plant or equipment
reflected in the consolidated balance sheet of the Borrower and its
Subsidiaries.
"CONSOLIDATED DEPRECIATION EXPENSE" shall mean, for any period, all
depreciation expenses of the Borrower and its Subsidiaries, all as determined
for the Borrower and its Subsidiaries on a consolidated basis in accordance with
GAAP.
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"CONSOLIDATED EBITDA" shall mean, for any period, Consolidated Net Income
for such period; PLUS (A) the sum of the amounts for such period included in
determining such Consolidated Net Income of (i) Consolidated Interest Expense,
(ii) Consolidated Income Tax Expense, (iii) Consolidated Depreciation Expense,
(iv) Consolidated Amortization Expense, (v) non-cash losses and charges which
are properly classified as extraordinary or non-recurring, (vi) non-cash charges
associated with FAS 142 and FAS 144, and (vii) charges associated with the
termination of the Aircraft Lease LESS (B) gains on sales of assets and other
extraordinary gains and other non-recurring non-cash gains; all as determined
for the Borrower and its Subsidiaries on a consolidated basis in accordance with
GAAP; EXCEPT that in computing Consolidated Net Income for purposes of this
definition, there shall be excluded therefrom (x) the income, (or loss) of any
entity (other than Subsidiaries of the Borrower) in which the Borrower or any of
its Subsidiaries has a joint or minority interest, except to the extent of the
amount of dividends or other distributions actually paid to the Borrower or any
of its Subsidiaries during such period, and (y) the income of any Subsidiary of
the Borrower to the extent that the declaration or payment of dividends or
similar distributions by that Subsidiary of that income is not at the time
permitted by operation of the terms of its charter or any agreement, instrument,
judgment, decree, order, statute, rule or governmental regulation applicable to
that Subsidiary; and PROVIDED THAT "Consolidated EBITDA" shall in any event
include the insurance proceeds received by the Borrower related to the
shareholder litigation settlement in November 2005.
"CONSOLIDATED INCOME TAX EXPENSE" shall mean, for any period, all
provisions for taxes based on the net income of the Borrower or any of its
Subsidiaries (including, without limitation, any additions to such taxes, and
any penalties and interest with respect thereto), all as determined for the
Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP.
"CONSOLIDATED INTEREST EXPENSE" shall mean, for any period, total interest
expense (including that which is capitalized, that which is attributable to
Capital Leases or Synthetic Leases and the pre-tax equivalent of dividends
payable on Redeemable Stock) of the Borrower and its Subsidiaries on a
consolidated basis with respect to all outstanding Indebtedness of the Borrower
and its Subsidiaries including, without limitation, all commissions, discounts
and other fees and charges owed with respect to letters of credit and net costs
under Hedge Agreements, BUT EXCLUDING, HOWEVER, any amortization or write-off of
deferred financing costs and any charges for prepayment penalties on prepayment
of Indebtedness.
"CONSOLIDATED NET INCOME" shall mean for any period, the net income (or
loss), without deduction (or increase) for minority interests, of the Borrower
and its Subsidiaries on a consolidated basis for such period taken as a single
accounting period determined in conformity with GAAP.
"CONSOLIDATED TOTAL DEBT" shall mean the sum (without duplication) of all
Indebtedness of the Borrower and of each of its Subsidiaries, all as determined
on a consolidated basis.
"CONTINUE", "CONTINUATION" and "CONTINUED" each refers to a continuation of
Eurocurrency Loans for an additional Interest Period as provided in section 2.8.
"CONVERT", "CONVERSION" and "CONVERTED" each refers to a conversion of
Loans of one Type into Loans of another Type, pursuant to section 2.6, 2.8(b),
2.9 or 5.2.
"CREDIT DOCUMENTS" shall mean this Agreement, the Notes, the Subsidiary
Guaranty, the Security Documents, and any Letter of Credit Document.
"CREDIT EVENT" shall mean the making of any Loans and/or the issuance of
any Letter of Credit.
"CREDIT PARTY" shall mean the Borrower and each of the Borrower's
Subsidiaries and Affiliates which is a party to any Credit Document.
"DEFAULT" shall mean any event, act or condition which with notice or lapse
of time, or both, would constitute an Event of Default.
"DEFAULTING LENDER" shall mean any Lender with respect to which a Lender
Default is in effect.
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"DESIGNATED HEDGE AGREEMENT" shall mean any Hedge Agreement to which the
Borrower or any of its Subsidiaries is a party which, pursuant to (x) a written
instrument signed by the Administrative Agent and (y) the following provisions,
has been designated as a Designated Hedge Agreement so that the Borrower's or
Subsidiary's counterparty's credit exposure thereunder will be entitled to share
in the benefits of the Subsidiary Guaranty and the Security Documents to the
extent the Subsidiary Guaranty and such Security Documents provide guarantees or
security for creditors of the Borrower or any Subsidiary under Designated Hedge
Agreements:
(i) The Administrative Agent will, without the approval or consent of
the Lenders, designate a Hedge Agreement entered into with any Lender or
any Affiliate of any Lender as a Designated Hedge Agreement so long as the
Administrative Agent reasonably determines, at the time of such designation
and after giving effect thereto, in accordance with its own customary
valuation practices, that the maximum aggregate credit exposure to the
Borrower and its Subsidiaries of all counterparties under all Designated
Hedge Agreements is not more than $30,000,000;
(ii) The Administrative Agent may, without the approval or consent of
the Lenders, designate a Hedge Agreement as a Designated Hedge Agreement so
long as the Administrative Agent reasonably determines, at the time of such
designation and after giving effect thereto, in accordance with its own
customary valuation practices, that the maximum aggregate credit exposure
to the Borrower and its Subsidiaries of all counterparties under all
Designated Hedge Agreements is not more than $30,000,000;
(iii) The Administrative Agent will not designate any Hedge Agreement
as a Designated Hedge Agreement without the approval, consent or
instructions of the Required Lenders if the Administrative Agent reasonably
determines, at the time of such designation and after giving effect
thereto, in accordance with its own customary valuation practices, that the
maximum aggregate credit exposure to the Borrower and its Subsidiaries of
all counterparties under all Designated Hedge Agreements is more than
$30,000,000; and
(iv) It shall be a condition to the rights of any counterparty
creditor of the Borrower or any Subsidiary under any Designated Hedge
Agreement (other than in the case of a Lender or an Affiliate of any
Lender) to share in any recoveries of enforcement of the Subsidiary
Guaranty and of the Security Documents, that such counterparty creditor
shall have entered into an intercreditor or similar agreement with the
Administrative Agent under which recoveries from the Borrower and its
Subsidiaries with respect to such Designated Hedge Agreement will be shared
in a manner consistent with the provisions of section 10.3 hereof;
provided, however, that notwithstanding the foregoing, the existing Hedge
Agreements set forth on Annex VII hereto shall in any event be Designated Hedge
Agreements.
"DESIGNATING LENDER" has the meaning provided in section 12.4(j).
"DOLLARS", "U.S. DOLLARS" and the sign "$" each means lawful money of the
United States.
"DOMESTIC LENDING OFFICE" shall mean, with respect to any Lender, the
affiliate, branch or office of such Lender specified as its Domestic Lending
Office in the Administrative Questionnaire delivered by it to the Administrative
Agent or in the Assignment and Assumption pursuant to which it became a Lender,
or such other affiliate, branch or office of such Lender as such Lender may from
time to time specify to the Borrower and the Administrative Agent.
"DOMESTIC SUBSIDIARY" shall mean any Subsidiary organized under the laws of
the United States of America, any State thereof, the District of Columbia, or
any United States possession, the chief executive office and principal place of
business of which is located in, and which conducts the majority of its business
within, the United States of America and its territories and possessions;
excluding, however, any Subsidiary of a Foreign Subsidiary.
"EFFECTIVE DATE" shall have the meaning provided in section 12.10.
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"ELIGIBLE ASSIGNEE" shall mean (a) a Lender; (b) an Affiliate of a Lender;
and (c) any other Person (other than a natural person) that is an "accredited
investor" (as defined in SEC Regulation D) approved by (i) the Administrative
Agent and (ii) unless a Default or Event of Default shall have occurred and be
continuing, the Borrower (each such approval of the Administrative Agent and the
Borrower not to be unreasonably withheld or delayed); provided that
notwithstanding the foregoing, "Eligible Assignee" shall not include the
Borrower or any of the Borrower's Affiliates or Subsidiaries and shall further
not include any direct competitor of the Borrower or any Person engaged in the
same or similar principal lines of business as the Borrower and its Subsidiaries
considered as a whole, or an Affiliate of any such competitor or Person.
"ENVIRONMENTAL CLAIMS" shall mean any and all administrative, regulatory or
judicial actions, suits, demands, demand letters, claims, liens, notices of
non-compliance or violation, investigations or proceedings relating in any way
to any Environmental Law or any permit issued under any such law (hereafter
"CLAIMS"), including, without limitation, (i) any and all Claims by governmental
or regulatory authorities for enforcement, cleanup, removal, response, remedial
or other actions or damages pursuant to any applicable Environmental Law, and
(ii) any and all Claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief resulting from
the storage, treatment or Release (as defined in CERCLA) of any Hazardous
Materials or arising from alleged injury or threat of injury to health, safety
or the environment.
"ENVIRONMENTAL LAW" shall mean any applicable Federal, state, foreign or
local statute, law, rule, regulation, ordinance, code, binding and enforceable
guideline, binding and enforceable written policy and rule of common law now or
hereafter in effect and in each case as amended, and any binding and enforceable
judicial or administrative interpretation thereof, including any judicial or
administrative order, consent, decree or judgment issued to or rendered against
the Borrower or any of its Subsidiaries relating to the environment, employee
health and safety or Hazardous Materials, including, without limitation, CERCLA;
RCRA; the Federal Water Pollution Control Act, 33 U.S.C. Section 2601 ET SEQ.;
the Clean Air Act, 42 U.S.C. Section 7401 ET SEQ.; the Safe Drinking Water Act,
42 U.S.C. Section 3803 ET SEQ.; the Oil Pollution Act of 1990, 33 U.S.C. Section
2701 ET SEQ.; the Emergency Planning and the Community Right-to-Know Act of
1986, 42 U.S.C. Section 11001 ET SEQ., the Hazardous Material Transportation
Act, 49 U.S.C. Section 1801 ET SEQ. and the Occupational Safety and Health Act,
29 U.S.C. Section 651 ET SEQ. (to the extent it regulates occupational exposure
to Hazardous Materials); and any state and local or foreign counterparts or
equivalents, in each case as amended from time to time.
"ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the regulations promulgated and rulings issued
thereunder. Section references to ERISA are to ERISA, as in effect at the
Effective Date and any subsequent provisions of ERISA, amendatory thereof,
supplemental thereto or substituted therefor.
"ERISA AFFILIATE" shall mean each person (as defined in section 3(9) of
ERISA) which together with the Borrower or a Subsidiary of the Borrower would be
deemed to be a "single employer" (i) within the meaning of section 414(b), (c),
(m) or (o) of the Code or (ii) as a result of the Borrower or a Subsidiary of
the Borrower being or having been a general partner of such person.
"EURO" shall mean the single currency of the Participating Member States of
the European Union.
"EUROCURRENCY LENDING OFFICE" shall mean, with respect to any Lender, the
affiliate, branch or office of such Lender specified as its Eurocurrency Lending
Office in the Administrative Questionnaire delivered by it to the Administrative
Agent or in the Assignment and Assumption pursuant to which it became a Lender,
or such other affiliate, branch or office or offices of such Lender as such
Lender may from time to time specify to the Borrower and the Administrative
Agent.
"EUROCURRENCY LOANS" shall mean each Loan bearing interest at the rates
provided in section 2.7(b).
"EUROCURRENCY RATE" shall mean with respect to each Interest Period for a
Eurocurrency Loan, (A) either (i) the rate per annum for deposits in Dollars for
a maturity most nearly comparable to such Interest Period which appears on page
3740 or 3750, as applicable, of the Dow Xxxxx Telerate Screen as of 11:00 A.M.
(local time at the Notice Office) on the date which is two Business Days prior
to the commencement of such Interest Period, or (ii) if such a rate does not
appear on such a page, an interest rate per annum equal to the average (rounded
to the nearest
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ten thousandth of 1% per annum, if such average is not such a multiple) of the
rate per annum at which deposits in Dollars are offered to each of the Reference
Banks by prime banks in the London interbank Eurocurrency market for deposits of
amounts in same day funds comparable to the outstanding principal amount of the
Eurocurrency Loan for which an interest rate is then being determined with
maturities comparable to the Interest Period to be applicable to such
Eurocurrency Loan, determined as of 11:00 A.M. (London time) on the date which
is two Business Days prior to the commencement of such Interest Period, in each
case divided (and rounded to the nearest ten thousandth of 1%) by (B) a
percentage equal to 100% minus the then stated maximum rate of all reserve
requirements (including, without limitation, any marginal, emergency,
supplemental, special or other reserves) applicable to any member bank of the
Federal Reserve System in respect of Eurocurrency liabilities as defined in
Regulation D (or any successor category of liabilities under Regulation D);
PROVIDED, HOWEVER, that in the event that the rate referred to in clause (i)
above is not available at any such time for any reason, then the rate referred
to in clause (i) shall instead be the average (rounded to the nearest ten
thousandth of 1%) of the rates at which U.S. dollar deposits of $5,000,000 are
offered to the Reference Banks in the London interbank market at approximately
11:00 a.m. (London time), two Business Days prior to the commencement of such
Interest Period, for contracts which would be entered into at the commencement
of such Interest Period.
"EVENT OF DEFAULT" shall have the meaning provided in section 10.1.
"EVENT OF LOSS" shall mean, with respect to any property, (i) the actual or
constructive total loss of such property or the use thereof, resulting from
destruction, damage beyond repair, or the rendition of such property permanently
unfit for normal use from any casualty or similar occurrence whatsoever, (ii)
the destruction or damage of a portion of such property from any casualty or
similar occurrence whatsoever under circumstances in which such damage cannot
reasonably be expected to be repaired, or such property cannot reasonably be
expected to be restored to its condition immediately prior to such destruction
or damage, within 90 days after the occurrence of such destruction or damage,
(iii) the condemnation, confiscation or seizure of, or requisition of title to
or use of, any property, or (iv) in the case of any property located upon a
Leasehold, the termination or expiration of such Leasehold.
"EXISTING CREDIT AGREEMENT" means the $150,000,000 Revolving Credit
Agreement, dated as of August 7, 2003, by and among the Borrower, the financial
institutions party thereto, and NCB, as administrative agent.
"EXISTING INDEBTEDNESS" shall have the meaning provided in section 7.17.
"EXISTING INDEBTEDNESS AGREEMENTS" shall have the meanings provided in
section 7.17.
"EXISTING LETTER OF CREDIT" shall have the meaning provided in section
3.1(d).
"FACILITY" shall mean the Revolving Facility and the Swing Line Facility,
or both of them, as applicable.
"FACING FEE" shall have the meaning provided in section 4.1(c).
"FEDERAL FUNDS EFFECTIVE RATE" shall mean, for any period, a fluctuating
interest rate equal for each day during such period to the weighted average of
the rates on overnight Federal Funds transactions with members of the Federal
Reserve System arranged by Federal Funds brokers, as published for such day (or,
if such day is not a Business Day, for the next preceding Business Day) by the
Federal Reserve Bank of New York, or, if such rate is not so published for any
day which is a Business Day, the average of the quotations for such day on such
transactions received by the Administrative Agent from three Federal Funds
brokers of recognized standing selected by the Administrative Agent.
"FEES" shall mean all amounts payable pursuant to, or referred to in,
section 4.1.
"FOREIGN LENDER" means a Person which is not a United States person (as
such term is defined in section 7701(a)(30) of the Code) for Federal Income Tax
purposes.
9
"FOREIGN SUBSIDIARY" shall mean any Subsidiary which is not incorporated
(or otherwise organized) in the United States and substantially all of whose
assets and properties are located, or substantially all of whose business is
carried on, outside the United States.
"GAAP" shall mean generally accepted accounting principles in the United
States of America as in effect from time to time; it being understood and agreed
that determinations in accordance with GAAP for purposes of section 9, including
defined terms as used therein, are subject (to the extent provided therein) to
sections 1.3 and 12.7(a).
"GUARANTY OBLIGATIONS" shall mean as to any Person (without duplication)
any obligation of such Person guaranteeing any Indebtedness ("PRIMARY
INDEBTEDNESS") of any other Person (the "PRIMARY OBLIGOR") in any manner,
whether directly or indirectly, including, without limitation, any obligation of
such Person, whether or not contingent, (a) to purchase any such primary
Indebtedness or any property constituting direct or indirect security therefor,
(b) to advance or supply funds (i) for the purchase or payment of any such
primary Indebtedness or (ii) to maintain working capital or equity capital of
the primary obligor or otherwise to maintain the net worth or solvency of the
primary obligor, (c) to purchase property, securities or services primarily for
the purpose of assuring the owner of any such primary Indebtedness of the
ability of the primary obligor to make payment of such primary Indebtedness, or
(d) otherwise to assure or hold harmless the owner of such primary Indebtedness
against loss in respect thereof, PROVIDED, HOWEVER, that the term Guaranty
Obligation shall not include endorsements of instruments for deposit or
collection in the ordinary course of business. The amount of any Guaranty
Obligation shall be deemed to be an amount equal to the stated or determinable
amount of the primary Indebtedness in respect of which such Guaranty Obligation
is made or, if not stated or determinable, the maximum reasonably anticipated
liability in respect thereof (assuming such Person is required to perform
thereunder) as determined by such Person in good faith.
"HAZARDOUS MATERIALS" shall mean (i) any petrochemical or petroleum
products, radioactive materials, asbestos in any form that is or could become
friable, urea formaldehyde foam insulation, transformers or other equipment that
contain dielectric fluid containing levels of polychlorinated biphenyls, and
radon gas; and (ii) any chemicals, materials or substances defined as or
included in the definition of "hazardous substances", "hazardous wastes",
"hazardous materials", "restricted hazardous materials", "extremely hazardous
wastes", "restrictive hazardous wastes", "toxic substances", "toxic pollutants",
"contaminants" or "pollutants", or words of similar meaning and regulatory
effect, under any applicable Environmental Law.
"HEDGE AGREEMENT" shall mean (i) any interest rate swap agreement, interest
rate cap agreement, interest rate collar agreement or other similar agreement or
arrangement (ii) any currency swap agreement, forward currency purchase
agreement or similar agreement or arrangement designed to protect against
fluctuations in currency exchange rates, and (iii) any forward commodity
purchase agreement or similar agreement or arrangement designed to protect
against fluctuations in raw material or other commodity prices.
"INCREMENTAL REVOLVING FACILITY AMOUNT" shall mean the difference between
(i) $150,000,000 and (ii) the Total Revolving Commitment in effect at such time.
"INCREMENTAL REVOLVING LENDER" shall have the meaning provided in section
2.1(c) hereof.
"INDEBTEDNESS" of any Person shall mean without duplication:
(i) all indebtedness of such Person for borrowed money;
(ii) all bonds, notes, debentures and similar debt securities of such
Person;
(iii) the deferred purchase price of capital assets or services which
in accordance with GAAP would be shown on the liability side of the balance
sheet of such Person;
(iv) the face amount of all letters of credit or bankers' acceptances
issued for the account of such Person and, without duplication, all drafts
drawn thereunder;
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(v) all obligations, contingent or otherwise, of such Person in
respect of bankers' acceptances;
(vi) all Indebtedness of a second Person secured by any Lien on any
property owned by such first Person, whether or not such Indebtedness has
been assumed;
(vii) all Capitalized Lease Obligations of such Person;
(viii) the present value, determined on the basis of the implicit
interest rate, of all basic rental obligations under all Synthetic Leases
of such Person;
(ix) all net obligations of such Person under Hedge Agreements;
(x) the full outstanding balance of trade receivables, notes or other
instruments sold with full recourse (and the portion thereof subject to
potential recourse, if sold with limited recourse), other than in any such
case any thereof sold solely for purposes of collection of delinquent
accounts;
(xi) the stated value, or liquidation value if higher, of all
Redeemable Stock of such Person; and
(xii) all Guaranty Obligations of such Person;
PROVIDED that (x) neither trade payables nor other similar accrued expenses, in
each case arising in the ordinary course of business, nor obligations in respect
of insurance policies or performance or surety bonds which themselves are not
guarantees of Indebtedness (nor drafts, acceptances or similar instruments
evidencing the same nor obligations in respect of letters of credit supporting
the payment of the same), shall constitute Indebtedness; and (y) the
Indebtedness of any Person shall in any event include (without duplication) the
Indebtedness of any other entity (including any general partnership in which
such Person is a general partner) to the extent such Person is liable thereon as
a result of such Person's ownership interest in or other relationship with such
entity, except to the extent the terms of such Indebtedness provide expressly
that such Person is not liable thereon.
"INDEMNITEES" has the meaning provided in section 12.1(g).
"INTEREST PERIOD" with respect to any Eurocurrency Loan shall mean the
interest period applicable thereto, as determined pursuant to section 2.8.
"JUDGMENT CURRENCY" has the meaning provided in section 12.24.
"JUDGMENT CURRENCY CONVERSION DATE" has the meaning provided in section
12.24.
"LEAD ARRANGER" shall have the meaning provided in the preamble to this
Agreement.
"LC PARTICIPANT" shall have the meaning provided in section 3.4(a).
"LEASEHOLDS" of any Person shall mean all the right, title and interest of
such Person as lessee or licensee in, to and under leases or licenses of land,
improvements and/or fixtures.
"LENDER" shall have the meaning provided in the first paragraph of this
Agreement, and shall include any Incremental Revolving Lender that becomes a
Lender hereunder pursuant to section 2.1(c).
"LENDER DEFAULT" shall mean (i) the refusal (which has not been retracted)
of a Lender in violation of the requirements of this Agreement to make available
its portion of any incurrence of Loans, to fund its Swing Line Participation
Amount under section 2.4(b), or to fund its portion of any unreimbursed payment
under section 3.4(c) or (ii) a Lender having notified the Administrative Agent
and/or the Borrower that it does not intend to comply with the obligations under
section 2.1, section 2.4(b) and/or section 3.4(c), in the case of either (i) or
(ii) as a result of the
11
appointment of a receiver or conservator with respect to such Lender at the
direction or request of any regulatory agency or authority.
"LENDER REGISTER" shall have the meaning provided in section 12.16.
"LETTER OF CREDIT" shall have the meaning provided in section 3.1(a).
"LETTER OF CREDIT DOCUMENTS" shall have the meaning specified in section
3.2(a).
"LETTER OF CREDIT FEE" shall have the meaning provided in section 4.1(b).
"LETTER OF CREDIT ISSUER" shall mean in respect of any Letter of Credit,
(1) NCB, and/or (2) such other Lender that is requested, and agrees, to so act
by the Borrower, and is approved by the Administrative Agent.
"LETTER OF CREDIT OBLIGOR" shall have the meaning provided in section
3.1(a).
"LETTER OF CREDIT OUTSTANDINGS" shall mean, at any time, the sum, without
duplication, of the Dollar amount of (i) the aggregate Stated Amount of all
outstanding Letters of Credit and (ii) the aggregate amount of all Unpaid
Drawings.
"LETTER OF CREDIT REQUEST" shall have the meaning provided in section
3.2(a).
"LEVERAGE RATIO" has the meaning provided in section 9.7.
"LIEN" shall mean any mortgage, pledge, security interest, encumbrance,
lien or charge of any kind (including any agreement to give any of the
foregoing, any conditional sale or other title retention agreement or any lease
in the nature thereof).
"LOAN" shall have the meaning provided in section 2.1.
"MARGIN STOCK" shall have the meaning provided in Regulation U.
"MATERIAL ADVERSE EFFECT" shall mean any or all of the following: (i) any
material adverse effect on the business, operations, property, assets,
liabilities or condition (financial or otherwise) of, when used with reference
to the Borrower and/or any of its Subsidiaries, the Borrower and its
Subsidiaries, taken as a whole, or when used with reference to any other Person,
such Person and its Subsidiaries, taken as a whole, as the case may be; (ii) any
material adverse effect on the ability of the Borrower or any other Credit Party
to perform its obligations under the Credit Documents to which it is a party;
(iii) any material adverse effect on the ability of the Borrower and its
Subsidiaries, taken as a whole, to pay their liabilities and obligations as they
mature or become due; or (iv) any material adverse effect on the validity,
effectiveness or enforceability, as against any Credit Party, of any of the
Credit Documents to which it is a party.
"MATERIAL SUBSIDIARY" shall mean, at any time, with reference to any
Person, any Subsidiary of such Person (i) that has assets at such time
comprising 5% or more of the consolidated assets of such Person and its
Subsidiaries, or (ii) whose operations in the current fiscal year are expected
to, or whose operations in the most recent fiscal year did (or would have if
such Person had been a Subsidiary for such entire fiscal year), represent 5% or
more of the consolidated earnings before interest, taxes, depreciation and
amortization of such Person and its Subsidiaries for such fiscal year.
"MATURITY DATE" shall mean December 20, 2010, or such earlier date as the
Total Revolving Commitment is terminated.
"MAXIMUM RATE" has the meaning provided in section 12.25.
"MINIMUM BORROWING AMOUNT" shall mean:
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(i) with respect to Borrowings under the Revolving Facility consisting
of (x) Prime Rate Loans, $2,500,000, with minimum increments thereafter of
$500,000, or (y) Eurocurrency Loans, $5,000,000 with minimum increments
thereafter of $1,000,000; or
(ii) with respect to a Borrowing under the Swing Line Facility
consisting of (x) a Prime Rate Loan, $100,000, with minimum increments
thereafter of $50,000, or (y) a Money Market Rate Loan, $250,000, with
minimum increments thereafter of $50,000.
"MONEY MARKET RATE LOAN" shall mean each Swing Line Loan bearing interest
at a rate provided in section 2.7(c).
"MOODY'S" shall mean Xxxxx'x Investors Service, Inc. and its successors.
"MULTIEMPLOYER PLAN" shall mean a multiemployer plan, as defined in section
4001(a)(3) of ERISA to which the Borrower or any ERISA Affiliate is making or
accruing an obligation to make contributions or has within any of the preceding
three plan years made or accrued an obligation to make contributions.
"MULTIPLE EMPLOYER PLAN" shall mean an employee benefit plan, other than a
Multiemployer Plan, to which the Borrower or any ERISA Affiliate, and one or
more employers other than the Borrower or an ERISA Affiliate, is making or
accruing an obligation to make contributions or, in the event that any such plan
has been terminated, to which the Borrower or an ERISA Affiliate made or accrued
an obligation to make contributions during any of the five plan years preceding
the date of termination of such plan.
"NCB" shall mean National City Bank, a national banking association,
together with its successors and assigns.
"NET CASH PROCEEDS" shall mean, with respect to (i) any Asset Sale, the
Cash Proceeds resulting therefrom net of (A) reasonable and customary expenses
of sale incurred in connection with such Asset Sale, and other reasonable and
customary fees and expenses incurred, and all state and local taxes paid or
reasonably estimated to be payable by such Person, as a consequence of such
Asset Sale and the payment of principal, premium and interest of Indebtedness
(other than the Obligations) secured by the asset which is the subject of the
Asset Sale and required to be, and which is, repaid under the terms thereof as a
result of such Asset Sale, (B) amounts of any distributions payable to holders
of minority interests in the relevant Person or in the relevant property or
assets and (C) incremental federal, state and local income taxes paid or payable
as a result thereof; and (ii) any Event of Loss, the Cash Proceeds resulting
therefrom net of (A) reasonable and customary expenses incurred in connection
with such Event of Loss, and local taxes paid or reasonably estimated to be
payable by such Person, as a consequence of such Event of Loss and the payment
of principal, premium and interest of Indebtedness (other than the Obligations)
secured by the asset which is the subject of the Event of Loss and required to
be, and which is, repaid under the terms thereof as a result of such Event of
Loss, (B) amounts of any distributions payable to holders of minority interests
in the relevant Person or in the relevant property or assets and (C) incremental
federal, state and local income taxes paid or payable as a result thereof.
"1934 ACT" shall mean the Securities Exchange Act of 1934, as amended.
"NON-DEFAULTING LENDER" shall mean each Lender other than a Defaulting
Lender.
"NOTE" shall mean a Revolving Note or the Swing Line Note, as applicable.
"NOTICE OF BORROWING" shall have the meaning provided in section 2.3(a).
"NOTICE OF CONVERSION" shall have the meaning provided in section 2.6.
"NOTICE OFFICE" shall mean the office of the Administrative Agent at
National City Center, 000 Xxxxxx Xxxxxx, Xxxxxxxxx, Xxxx 00000, Attention:
Agency Services Group (facsimile: (000) 000-0000), or such other
13
office, located in a city in the United States Eastern Time Zone, as the
Administrative Agent may designate to the Borrower from time to time.
"NOTICE OF SWING LINE REFUNDING" shall have the meaning provided in section
2.4(a).
"OBLIGATIONS" shall mean all amounts, direct or indirect, contingent or
absolute, of every type or description, and at any time existing, owing by the
Borrower or any other Credit Party to the Administrative Agent, the Collateral
Agent, any Lender or any Letter of Credit Issuer pursuant to the terms of this
Agreement or any other Credit Document.
"OPERATING LEASE" as applied to any Person shall mean any lease of any
property (whether real, personal or mixed) by that Person as lessee which, in
conformity with GAAP, is not accounted for as a Capital Lease on the balance
sheet of that Person.
"PARTICIPANT" has the meaning assigned to such term in section 12.4(d).
"PAYMENT OFFICE" shall mean the office of the Administrative Agent at
National City Center, 000 Xxxxxx Xxxxxx, Xxxxxxxxx, Xxxx 00000, Attention:
Agency Services Group (facsimile: (000) 000-0000), or such other office, located
in a city in the United States Eastern Time Zone, as the Administrative Agent
may designate to the Borrower from time to time.
"PBGC" shall mean the Pension Benefit Guaranty Corporation established
pursuant to section 4002 of ERISA, or any successor thereto.
"PERCENTAGE" shall mean at any time for any Lender with a Commitment under
any Facility (other than the Swing Line Facility), the percentage obtained by
dividing such Lender's aggregate Commitment under such Facilities, as
applicable, by the Total Commitment (exclusive of the Swing Line Commitment),
PROVIDED, that if the Total Commitment has been terminated, the Percentage for
each Lender shall be determined by dividing such Lender's aggregate outstanding
Loans (exclusive of the Swing Line Loans) by the total of all outstanding Loans
for all Lenders (exclusive of the Swing Line Loans).
"PERMITTED ACQUISITION" shall mean and include any Acquisition as to which
all of the following conditions are satisfied:
(i) such Acquisition involves a line or lines of business which is
complementary to the lines of business in which the Borrower and its
Subsidiaries, considered as an entirety, are engaged on the Effective Date,
UNLESS the Required Lenders specifically approve or consent to such
Acquisition in writing;
(ii) such Acquisition is not actively opposed by the Board of
Directors (or similar governing body) of the selling Person or the Person
whose equity interests are to be acquired, UNLESS all of the Lenders
specifically approve or consent to such Acquisition in writing; and
(iii) at least 10 Business Days prior to the completion of any such
Acquisition involving aggregate consideration, including the principal
amount of any assumed Indebtedness and (without duplication) any
Indebtedness of any acquired Person or Persons, in excess of $10,000,000,
the Borrower shall have delivered to the Lenders (A) audited financial
statements for the acquired businesses for the most recent fiscal year,
unless the same are unavailable and unaudited financial statements are
acceptable to the Required Lenders and (B) a certificate of an Authorized
Officer of the Borrower demonstrating, in reasonable detail, compliance
with the ratios referred to in sections 9.7 and 9.8 on a Pro Forma Basis;
PROVIDED, that the term Permitted Acquisition specifically excludes any loans,
advances or minority investments otherwise permitted pursuant to section 9.5.
"PERMITTED LIENS" shall mean Liens permitted by section 9.3.
14
"PERSON" shall mean any individual, partnership, joint venture, firm,
corporation, limited liability company, association, trust, company or other
enterprise or any government or political subdivision or any agency, department
or instrumentality thereof.
"PLAN" shall mean any multiemployer or single-employer plan as defined in
section 4001 of ERISA, which is maintained or contributed to by (or to which
there is an obligation to contribute by) the Borrower or a Subsidiary of the
Borrower or an ERISA Affiliate, and each such plan for the five year period
immediately following the latest date on which the Borrower, or a Subsidiary of
the Borrower or an ERISA Affiliate maintained, contributed to or had an
obligation to contribute to such plan.
"PLEDGE AGREEMENT" shall mean each pledge agreement substantially in the
form of Exhibit E, executed and delivered in connection herewith, as the same
may be amended, restated, amended and restated, supplemented or otherwise
modified from time to time.
"PRICING GRID TABLE" shall have the meaning provided in section 2.7(g).
"PRIME RATE" shall mean, for any period, a fluctuating interest rate per
annum as shall be in effect from time to time which rate per annum shall at all
times be equal to the greater of (i) the rate of interest established by the
Administrative Agent from time to time, as its prime rate, whether or not
publicly announced, which interest rate may or may not be the lowest rate
charged by it for commercial loans or other extensions of credit; and (ii) the
Federal Funds Effective Rate in effect from time to time PLUS 1/2 of 1% per
annum.
"PRIME RATE LOAN" shall mean each Loan, bearing interest at the rate
provided in section 2.7(a).
"PRINCIPAL PARTY" has the meaning provided in section 10.1(h)(i).
"PRO FORMA BASIS" shall mean, with respect to compliance with any test or
covenant hereunder, in connection with or after the occurrence of any
Acquisition or any Asset Sale, compliance with such covenant or test after
giving effect to such Acquisition or Asset Sale, (including pro forma
adjustments arising out of events which are directly attributable to such
proposed Acquisition or Asset Sale, are factually supportable and are expected
to have a continuing impact, in each case determined on a basis consistent with
Article 11 of Regulation S-X of the Securities Act of 1933, as amended, and as
interpreted by the Staff of the Securities and Exchange Commission using, for
purposes of determining such compliance, the historical financial statements of
all entities or assets so acquired or to be acquired (or the assets so disposed
of or to be disposed of in the Asset Sale) and the consolidated financial
statements of the Borrower and its Subsidiaries which shall be reformulated as
if such Acquisition, such Asset Sale, and any other Acquisitions or Asset Sales
that have been consummated during the relevant period, and the incurrence,
assumption and/or repayment of any Indebtedness or other liabilities incurred in
connection with any such Acquisitions or related to the Assets so disposed of or
to be disposed of in any such Asset Sale or otherwise during the relevant period
had been consummated, incurred or repaid, respectively, at the beginning of such
period and assuming that any such Indebtedness bears interest during any portion
of the applicable measurement period prior to the relevant Acquisition or Asset
Sale at the interest rates applicable to outstanding Loans during such period.
For the avoidance of doubt, to the extent the Borrower or any Subsidiary has, at
the end of any Testing Period, assets on its balance sheet classified as "Assets
held for Sale", such assets, and the related financial items, including income
and expense items, shall be included in calculating compliance with covenants or
tests on a Pro Forma Basis.
"PRO FORMA COMPLIANCE" shall mean, at any date of determination, that the
Borrower shall be in pro forma compliance with the covenants set forth in
Sections 9.7, 9.8 and 9.9 as of the last day of the most recent fiscal
quarter-end (computed on the basis of (a) balance sheet amounts as of the most
recently completed fiscal quarter, and (b) income statement amounts for the most
recently completed period of four consecutive fiscal quarters, in each case, for
which financial statements have been delivered to the Administrative Agent and
calculated on a Pro Forma Basis.
"PROHIBITED TRANSACTION" shall mean a transaction with respect to a Plan
that is prohibited under section 4975 of the Code or section 406 of ERISA and
not exempt under section 4975 of the Code or section 408 of ERISA.
15
"PUBLIC NOTES" shall mean the Borrower's 9.25% Senior Subordinated Notes
due 2011 in the original aggregate principal amount of $400,000,000.
"PUBLIC NOTES DOCUMENTS" shall mean each of (i) the Public Notes Indenture,
(ii) the Public Notes, and (iii) each other document, agreement or instrument
delivered in connection therewith.
"PUBLIC NOTES INDENTURE" shall mean (i) the Indenture dated as of December
12, 2001 among the Borrower, as Issuer, and Xxxxx Fargo, as successor trustee,
pursuant to which the Public Notes were issued.
"PURCHASE DATE" shall have the meaning provided in section 2.4(b).
"QUOTED RATE" shall have the meaning provided in section 2.3(c).
"RCRA" shall mean the Resource Conservation and Recovery Act, as the same
may be amended from time to time, 42 U.S.C. Section 6901 ET SEQ.
"REAL PROPERTY" of any Person shall mean all of the right, title and
interest of such Person in and to land, improvements and fixtures, including
Leaseholds.
"REDEEMABLE STOCK" shall mean with respect to any Person any capital stock
or similar equity interests of such Person that (i) is by its terms subject to
mandatory redemption, in whole or in part, pursuant to a sinking fund, scheduled
redemption or similar provisions, at any time prior to the latest Maturity Date;
or (ii) otherwise is required to be repurchased or retired on a scheduled date
or dates, upon the occurrence of any event or circumstance, at the option of the
holder or holders thereof, or otherwise, at any time prior to the latest
Maturity Date under this Agreement, other than any such repurchase or retirement
occasioned by a "change of control" or similar event.
"REFERENCE BANKS" shall mean (i) NCB and (ii) any other Lender or Lenders
selected as a Reference Bank by the Administrative Agent and the Required
Lenders, PROVIDED, that if any of such Reference Banks is no longer a Lender,
such other Lender or Lenders as may be selected by the Administrative Agent
acting on instructions from the Required Lenders.
"REGULATION D" shall mean Regulation D of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor to all
or a portion thereof establishing reserve requirements.
"REGULATION U" shall mean Regulation U of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor to all
or a portion thereof establishing margin requirements.
"RELATED PARTIES" means, with respect to any specified Person, such
Person's Affiliates and the respective directors, officers, trustees, employees,
agents and advisors of such Person and such Person's Affiliates.
"REPORTABLE EVENT" shall mean an event described in section 4043 of ERISA
or the regulations thereunder with respect to a Plan, other than those events as
to which the notice requirement is waived under subsections .22, .23, .25, .27,
..28, .29, .30, .31, .32, .34, .35, .62, .63, .64, .65 or .67 of PBGC Regulation
section 4043.
"REQUIRED LENDERS" shall mean Non-Defaulting Lenders whose outstanding
Revolving Loans and Unutilized Revolving Commitments constitute at least 51% of
the sum of the total outstanding Revolving Loans and Unutilized Revolving
Commitments of Non-Defaulting Lenders (PROVIDED that, for purposes hereof,
neither the Borrower, nor any of its Affiliates, shall be included in (i) the
Lenders holding such amount of the Revolving Loans or having such amount of the
Unutilized Revolving Commitments, or (ii) determining the aggregate unpaid
principal amount of the Revolving Loans or Unutilized Revolving Commitments).
"RESTRICTED PAYMENT" shall mean (i) any dividend or other distribution
(whether in cash, securities or other property) with respect to any shares of
any class of capital stock of the Borrower or any Subsidiary, or (ii) any
payment (whether in cash, securities or other property), including any sinking
fund or similar deposit, on account of
16
the purchase, redemption, retirement, acquisition, cancellation or termination
of any such shares of capital stock of the Borrower or any option, warrant or
other right to acquire any such shares of capital stock of the Borrower.
"REVOLVING BORROWING" shall mean the incurrence of Revolving Loans
consisting of one Type of Loan, by the Borrower from all of the Lenders having
Commitments in respect thereof on a PRO RATA basis on a given date (or resulting
from Conversions or Continuations on a given date), having in the case of
Eurocurrency Loans the same Interest Period.
"REVOLVING COMMITMENT" shall mean, with respect to each Lender, the amount
set forth opposite such Lender's name in Annex I hereto as its "Revolving
Commitment" as the same may be reduced from time to time pursuant to section
4.2, 4.3, 5.2 and/or 10.2, increased from time to time pursuant to section
2.1(c) hereof or adjusted from time to time as a result of assignments to or
from such Lender pursuant to section 12.4.
"REVOLVING FACILITY" shall mean the credit facility evidenced by the Total
Revolving Commitment.
"REVOLVING FACILITY PERCENTAGE" shall mean at any time for any Lender, the
percentage obtained by dividing such Lender's Revolving Commitment by the Total
Revolving Commitment, PROVIDED, that if the Total Revolving Commitment has been
terminated, the Revolving Facility Percentage for each Lender shall be
determined by dividing such Lender's Revolving Loans by the total of all
outstanding Revolving Loans for all Lenders.
"REVOLVING LOAN" shall have the meaning provided in section 2.1(a).
"REVOLVING NOTE" shall have the meaning provided in section 2.5(a).
"SALE AND LEASE-BACK TRANSACTION" shall mean any arrangement with any
Person providing for the leasing by the Borrower or any Subsidiary of the
Borrower of any property (except for temporary leases for a term, including any
renewal thereof, of not more than one year and except for leases between the
Borrower and a Subsidiary or between Subsidiaries), which property has been or
is to be sold or transferred by the Borrower or such Subsidiary to such Person.
"S&P" shall mean Standard & Poor's Ratings Group, a division of McGraw
Hill, Inc., and its successors.
"SEC" shall mean the United States Securities and Exchange Commission.
"SEC REGULATION D" shall mean Regulation D as promulgated under the
Securities Act of 1933, as amended, as the same may be in effect from time to
time.
"SECTION 5.4(B)(II) CERTIFICATE" shall have the meaning provided in section
5.4(b)(ii).
"SECURITY AGREEMENT" shall mean each security agreement substantially in
the form of Exhibit F executed and delivered in connection herewith, as the same
may be amended, restated, amended and restated, supplemented or otherwise
modified from time to time.
"SECURITY DOCUMENTS" shall mean each Security Agreement, each Pledge
Agreement, each Collateral Assignment of Patents, each Collateral Assignment of
Trademarks, and each other document pursuant to which any Lien or security
interest is granted by any Credit Party to the Collateral Agent as security for
any of the Obligations.
"STANDARD PERMITTED LIENS" shall mean the following:
(i) Liens for taxes not yet delinquent or Liens for taxes being
contested in good faith and by appropriate proceedings for which adequate
reserves (in the good faith judgment of the management of the Borrower)
have been established;
(ii) Liens in respect of property or assets imposed by law which were
incurred in the ordinary course of business, such as carriers',
warehousemen's, materialmen's and mechanics' Liens and other
17
similar Liens arising in the ordinary course of business, which do not in
the aggregate materially detract from the value of such property or assets
or materially impair the use thereof in the operation of the business of
the Borrower or any Subsidiary;
(iii) Liens created by this Agreement or the other Credit Documents;
(iv) Liens arising from judgments, decrees or attachments in
circumstances not constituting an Event of Default under section 10.1(g);
(v) Liens (other than any Lien imposed by ERISA) incurred or deposits
made in the ordinary course of business in connection with workers'
compensation, unemployment insurance and other types of social security;
and mechanic's Liens, carrier's Liens, and other Liens to secure the
performance of tenders, statutory obligations, contract bids, government
contracts, performance and return-of-money bonds and other similar
obligations, incurred in the ordinary course of business (exclusive of
obligations in respect of the payment for borrowed money), whether pursuant
to statutory requirements, common law or consensual arrangements;
(vi) Leases or subleases granted to others not interfering in any
material respect with the business of the Borrower or any of its
Subsidiaries and any interest or title of a lessor under any lease not in
violation of this Agreement;
(vii) easements, rights-of-way, zoning or other restrictions, charges,
encumbrances, defects in title, prior rights of other Persons, and
obligations contained in similar instruments, in each case which do not
involve, and are not likely to involve at any future time, either
individually or in the aggregate, (A) a substantial and prolonged
interruption or disruption of the business activities of the Borrower and
its Subsidiaries considered as an entirety, or (B) a Material Adverse
Effect;
(viii) Liens arising from the rights of lessors under leases
(including financing statements regarding property subject to lease) not in
violation of the requirements of this Agreement, PROVIDED that such Liens
are only in respect of the property subject to, and secure only, the
respective lease (and any other lease with the same or an affiliated
lessor); and
(ix) rights of consignors of goods purchased or possessed by the
Borrower or any of its Subsidiaries for inclusion in their inventory,
whether or not such consignment is perfected by the filing of any financing
statement under the UCC.
"STATED AMOUNT" of each Letter of Credit shall mean the maximum available
to be drawn thereunder (regardless of whether any conditions or other
requirements for drawing could then be met).
"SUBSIDIARY" of any Person shall mean and include (i) any corporation more
than 50% of whose stock of any class or classes having by the terms thereof
ordinary voting power to elect a majority of the directors of such corporation
(irrespective of whether or not at the time stock of any class or classes of
such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such Person directly or
indirectly through Subsidiaries and (ii) any partnership, association, joint
venture or other entity in which such Person directly or indirectly through
Subsidiaries, has more than a 50% equity interest at the time. Unless otherwise
expressly provided, all references herein to "Subsidiary" shall mean a
Subsidiary of the Borrower.
"SUBSIDIARY GUARANTOR" shall mean any Subsidiary which is a party to the
Subsidiary Guaranty.
"SUBSIDIARY GUARANTY" means any subsidiary guaranty substantially in the
form of Exhibit G executed and delivered in connection herewith, as the same may
be amended, restated, amended and restated, supplemented or otherwise modified
from time to time.
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"SUBORDINATED INDEBTEDNESS" shall mean any Indebtedness which has been
subordinated to the Obligations in such manner and to such extent as the
Administrative Agent (acting on instructions from the Required Lenders) may
require.
"SWING LINE BORROWING" shall mean the incurrence of a single Type of Swing
Line Loan from the Swing Line Lender on a given date.
"SWING LINE CAP" shall mean $15,000,000.
"SWING LINE COMMITMENT" shall mean, with respect to the Swing Line Lender,
the amount set forth opposite such Lender's name in Annex I as its "Swing Line
Commitment" as the same may be reduced from time to time pursuant to section
4.2, 4.3 and/or 10.2 or adjusted from time to time as a result of assignments to
or from the Swing Line Lender pursuant to section 12.4.
"SWING LINE EXPOSURE" shall mean, with respect to any Lender at any time,
such Lender's obligation to refund or purchase a participation equal to, its
Revolving Facility Percentage of the aggregate Swing Line Loans outstanding
advanced to the Borrower.
"SWING LINE FACILITY" shall mean the credit facility evidenced by the Swing
Line Commitment.
"SWING LINE LENDER" shall mean the Lender indicated in Annex I hereto as
having the "Swing Line Commitment" and shall include any other single Lender to
whom the Swing Line Lender has transferred its entire Swing Line Commitment and
any Swing Line Loans.
"SWING LINE LOAN" shall have the meaning provided in section 2.1(b).
"SWING LINE NOTE" shall have the meaning provided in section 2.5(a).
"SWING LINE PARTICIPATION AMOUNT" shall have the meaning provided in
section 2.4(b).
"SYNTHETIC LEASE" shall mean any lease (i) which is accounted for by the
lessee as an Operating Lease, and (ii) under which the lessee is intended to be
the "owner" of the leased property for Federal income tax purposes.
"TAXES" shall have the meaning provided in section 5.4.
"TESTING PERIOD" shall mean for any determination a single period
consisting of the four consecutive fiscal quarters of the Borrower then last
ended (whether or not such quarters are all within the same fiscal year), EXCEPT
that if a particular provision of this Agreement indicates that a Testing Period
shall be of a different specified duration, such Testing Period shall consist of
the particular fiscal quarter or quarters then last ended which are so indicated
in such provision.
"TOTAL COMMITMENT" shall mean the sum of the Commitments of the Lenders.
"TOTAL REVOLVING COMMITMENT" shall mean the Revolving Commitments of the
Lenders, including any increase thereto pursuant to section 2.1(c).
"TYPE" shall mean any type of Loan determined with respect to the interest
option applicable thereto, I.E., a Prime Rate Loan, a Eurocurrency Loan or a
Money Market Rate Loan.
"UCC" shall mean the Uniform Commercial Code.
"UNCOLLATERALIZED PROPERTY" shall have the meaning provided in section
8.12(a).
"UNFUNDED CURRENT LIABILITY" of any Plan shall mean the amount, if any, by
which the actuarial present value of the accumulated plan benefits under the
Plan as of the close of its most recent plan year exceeds the fair
19
market value of the assets allocable thereto, each determined in accordance with
Statement of Financial Accounting Standards No. 87, based upon the actuarial
assumptions used by the Plan's actuary in the most recent annual valuation of
the Plan.
"UNITED STATES" and "U.S." shall each mean the United States of America.
"UNPAID DRAWING" shall have the meaning provided in section 3.3(a).
"UNUTILIZED REVOLVING COMMITMENT" shall mean, with respect to any Lender
and its Revolving Commitment, at any time, the excess of (i) such Lender's
Revolving Commitment at such time over (ii) the sum of (x) the principal amount
of Revolving Loans made by such Lender and outstanding at such time, and (y)
such Lender's Revolving Facility Percentage of Letter of Credit Outstandings at
such time.
"UNUTILIZED SWING LINE COMMITMENT" shall mean, at any time, the excess of
(i) the Swing Line Commitment at such time over (ii) the aggregate principal
amount of all Swing Line Loans then outstanding.
"UNUTILIZED TOTAL COMMITMENT" shall mean, at any time, the excess of (i)
the Total Commitment at such time over (ii) the sum of (x) the aggregate
principal amount of all Loans then outstanding plus (y) the aggregate Letter of
Credit Outstandings at such time.
"UNUTILIZED TOTAL REVOLVING COMMITMENT" shall mean, at any time, the excess
of (i) the Total Revolving Commitment at such time over (ii) the sum of (x) the
aggregate principal amount of all Revolving Loans then outstanding plus (y) the
aggregate Letter of Credit Outstandings at such time.
"USA PATRIOT ACT" means the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT Act)
Act of 2001.
"WHOLLY-OWNED SUBSIDIARY" shall mean each Subsidiary of the Borrower at
least 95% of whose capital stock, equity interests and partnership interests,
other than director's qualifying shares or similar interests, are owned directly
or indirectly by the Borrower.
"WRITTEN", "WRITTEN" or "IN WRITING" shall mean any form of written
communication or a communication by means of telex, facsimile transmission,
telegraph or cable.
1.2. COMPUTATION OF TIME PERIODS. In this Agreement in the computation of
periods of time from a specified date to a later specified date, the word "from"
means "from and including" and the words "to" and "until" each means "to but
excluding".
1.3. ACCOUNTING TERMS. Except as otherwise specifically provided herein,
all terms of an accounting or financial nature shall be construed in accordance
with GAAP, as in effect from time to time; PROVIDED that, if the Borrower
notifies the Administrative Agent that the Borrower requests an amendment to any
provision of section 8 or 9 hereof to eliminate the effect of any change
occurring after the Effective Date in GAAP or in the application thereof to such
provision (or if the Administrative Agent notifies the Borrower that the
Required Lenders request an amendment to any such provision hereof for such
purposes), regardless of whether any such notice is given before or after such
change in GAAP or in the application thereof, then such provision shall be
interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been
withdrawn or such provision amended in accordance with the requirements of this
Agreement.
1.4. TERMS GENERALLY. The definitions of terms herein shall apply equally
to the singular and plural forms of the terms defined. Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and
neuter forms. The words "include", "includes" and "including" shall be deemed to
be followed by the phrase "without limitation". The word "will" shall be
construed to have the same meaning and effect as the word "shall". Unless the
context requires otherwise, (a) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such
agreement, instrument or other document
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as from time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein),
(b) any reference herein to any Person shall be construed to include such
Person's successors and assigns, (c) the words "herein", "hereof" and
"hereunder", and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all
references herein to sections, Annexes and Exhibits shall be construed to refer
to sections of, and Annexes and Exhibits to, this Agreement, and (e) the words
"asset" and "property" shall be construed to have the same meaning and effect
and to refer to any and all real property, tangible and intangible assets and
properties, including cash, securities, accounts and contract rights, and
interests in any of the foregoing.
1.5. CURRENCY EQUIVALENTS. For purposes of this Agreement, except as
otherwise specified herein, (i) the equivalent in Dollars of Alternative
Currency shall be determined by using the quoted spot rate at which the
Administrative Agent offers to exchange Dollars for Alternative Currency at its
Payment Office at 9:00 A.M. (local time at the Payment Office) two Business Days
prior to the date on which such equivalent is to be determined and (ii) the
equivalent in Alternative Currency of Dollars shall be determined by using the
quoted spot rate at which the Administrative Agent's Payment Office offers to
exchange Alternative Currency for Dollars at the Payment Office at 9:00 A.M.
(local time at the Payment Office) two Business Days prior to the date on which
such equivalent is to be determined; PROVIDED that (A) the equivalent in Dollars
of each Eurocurrency Loan made in Alternative Currency shall be, for the
purposes of determining the unused portion of each Lender's Commitment, or any
or all Loan or Loans outstanding on such date, calculated or recalculated, as
the case may be, on the date that the Eurocurrency Rate applicable to such Loan
is established, on the last day of the Interest Period applicable thereto, and
on each date that it shall be necessary (or the Administrative Agent shall
elect) to determine the unused portion of each Lender's Commitment; (B) the
equivalent in Dollars of any Unpaid Drawing in respect of any Letter of Credit
denominated in Alternative Currency shall be determined at the time the drawing
under such Letter of Credit was paid or disbursed by the applicable Letter of
Credit Issuer; (C) for purposes of determining the Letter of Credit Outstandings
or the Unutilized Total Revolving Commitment as contemplated by sections 2.1(a),
3.1(b) and 5.2, the equivalent in Dollars of the Stated Amount of any Letter of
Credit denominated in Alternative Currency shall be calculated (x) on the date
of the issuance of the respective Letter of Credit, and (y) in any other case
where the same is required or permitted to be calculated, on such other day as
the Administrative Agent may, in its sole discretion, consider appropriate; and
(D) for purposes of sections 4.1(b) and (c), the equivalent in Dollars of the
Stated Amount of any Letter of Credit denominated in Alternative Currency shall
be calculated for the applicable quarterly period at the time of invoicing for
such quarterly period in which the respective payment is due pursuant to said
sections.
1.6. PRO FORMA CALCULATIONS. Notwithstanding anything to the contrary in
this Agreement, with respect to any period during which any Permitted
Acquisition or any Asset Sale occurs as permitted pursuant to the terms hereof,
for purposes of determining compliance with the covenants set forth in sections
9.7 and 9.8, such compliance shall be determined on the basis of Pro Forma
Compliance and, accordingly, Consolidated EBITDA, Consolidated Total Debt and
the Cash Flow Coverage Ratio shall be calculated with respect to such periods on
a Pro Forma Basis.
SECTION 2. AMOUNT AND TERMS OF LOANS
2.1. COMMITMENTS FOR LOANS. Subject to and upon the terms and conditions
herein set forth, each Lender severally agrees to make a loan or loans (each a
"LOAN" and, collectively, the "LOANS") to the Borrower, which Loans shall be
drawn, to the extent such Lender has a commitment under a Facility for the
Borrower, under the applicable Facility, as set forth below:
(A) REVOLVING FACILITY. Loans to the Borrower under the Revolving Facility
(each a "REVOLVING LOAN" and, collectively, the "REVOLVING LOANS"): (i) may be
incurred by the Borrower at any time and from time to time on and after the
Closing Date and prior to the date the Total Revolving Commitment expires or is
terminated; (ii) except as otherwise provided, may, at the option of the
Borrower be incurred and maintained as, or Converted into, Revolving Loans which
are Prime Rate Loans or Eurocurrency Loans, in each case denominated in Dollars
or Alternative Currency, PROVIDED that all Revolving Loans made as part of the
same Revolving Borrowing shall, unless otherwise specifically provided herein,
consist of Revolving Loans of the same Type and currency, and provided further
that the aggregate principle amount of loans denominated in Alternative Currency
shall not exceed at any time outstanding the Alternative Currency Sublimit;
(iii) may be repaid or prepaid and reborrowed in accordance with the provisions
hereof; (iv) may only be made if after giving effect thereto the Unutilized
Total
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Revolving Commitment exceeds the outstanding Swing Line Loans; and (v) shall not
exceed for any Lender at any time outstanding that aggregate principal amount
which, when added to the sum of (1) such Lender's Swing Line Exposure plus (2)
the product at such time of (A) such Lender's Revolving Facility Percentage,
TIMES (B) the aggregate Letter of Credit Outstandings, equals the Revolving
Commitment of such Lender at such time.
(B) SWING LINE FACILITY. Loans to the Borrower under the Swing Line
Facility (each a "SWING LINE LOAN" and, collectively, the "SWING LINE LOANS"):
(i) shall be made only by the Swing Line Lender; (ii) may be made at any time
and from time to time on and after the Closing Date and prior to the earlier of
(x) the date the Swing Line Commitment expires or is terminated, or (y) the date
the Total Revolving Commitment expires or is terminated; (iii) shall be made
only in Dollars; (iv) shall have a maturity of no longer than one Business Day;
(v) may be incurred as either a Prime Rate Loan or a Money Market Rate Loan;
(vi) may be repaid or prepaid and reborrowed in accordance with the provisions
hereof; (vii) may only be made if after giving effect thereto the Unutilized
Total Revolving Commitment exceeds the outstanding Swing Line Loans; and (viii)
shall not exceed for the Swing Line Lender at any time outstanding its Swing
Line Commitment at such time; and (ix) shall not exceed in the aggregate, the
Swing Line Cap.
(C) INCREASE IN REVOLVING CREDIT COMMITMENTS. (i) The Borrower may, by
written notice to the Administrative Agent from time to time, request that the
Total Revolving Commitment be increased by an amount not to exceed the
Incremental Revolving Facility Amount available at such time. Such notice shall
set forth the amount of the requested increase in the Total Revolving Commitment
(which shall be in minimum increments of $5,000,000 and a minimum amount of
$10,000,000 or equal to the Incremental Revolving Facility Amount available at
such time) and the date on which such increase is requested to become effective
(which shall be not less than 10 Business Days nor more than 60 days after the
date of such notice and which, in any event, must be on or prior to the
Revolving Maturity Date). Upon the approval of such request by the
Administrative Agent (which approval shall not be unreasonably withheld), the
Borrower may arrange for one or more banks or other entities, in each case
acceptable to the Administrative Agent (any such bank or other entity referred
to in this clause being an "INCREMENTAL REVOLVING LENDER"), which may include
any Lender, to extend Revolving Commitments or increase their existing Revolving
Commitments in an aggregate amount equal to the requested increase in the Total
Revolving Commitment. The Borrower and each Incremental Revolving Lender shall
execute all such documentation as the Administrative Agent shall reasonably
specify to evidence its Revolving Commitment and/or its status as a Lender with
a Revolving Commitment hereunder. Any increase in the Total Revolving Commitment
may be made in an amount which is less than the increase requested by the
Borrower if the Borrower is unable to arrange for Incremental Revolving Lenders.
(ii) Each of the parties hereto agrees that the Administrative Agent may
take any and all actions as may be reasonably necessary to ensure that, after
giving effect to any increase in the Total Revolving Commitment pursuant to this
Section 2.1(c), the outstanding Revolving Loans (if any) are held by the Lenders
with Revolving Commitments in accordance with their new Revolving Facility
Percentages. This may be accomplished at the discretion of the Administrative
Agent (w) by requiring the outstanding Revolving Loans to be prepaid with the
proceeds of new Revolving Borrowings, (x) by causing Lenders to assign portions
of their outstanding Revolving Loans to other Lenders, (y) by permitting the
Revolving Borrowings outstanding at the time of any increase in the Total
Revolving Commitment pursuant to this section 2.1(c) to remain outstanding until
the last days of the respective Interest Periods therefor, even though the
Lenders would hold such Revolving Borrowings other than in accordance with their
new Revolving Facility Percentages, or (z) by any combination of the foregoing.
Any prepayment or assignment described in this paragraph (ii) shall be subject
to section 2.10 hereof but otherwise without premium or penalty.
(iii) Notwithstanding the foregoing, no increase in the Total Revolving
Commitment (or in the Revolving Credit Commitment of any Lender) or addition of
a new Lender shall become effective under this section 2.1(c) unless, (x) on the
date of such increase, the conditions set forth in section 6.2 shall be
satisfied and the Administrative Agent shall have received a certificate to that
effect dated such date and executed by a responsible financial officer of the
Borrower, and (y) the Administrative Agent shall have received (with sufficient
copies for each of the Lenders with Revolving Commitments) legal opinions, board
resolutions and an officer's certificate consistent with those delivered on the
Closing Date under sections 6.1(e), (g) and (j) and such other items as the
Administrative Agent shall reasonably request.
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2.2. MINIMUM BORROWING AMOUNTS, ETC.; PRO RATA BORROWINGS. (a) The
aggregate principal amount of each Borrowing by the Borrower shall not be less
than the Minimum Borrowing Amount. More than one Borrowing may be incurred by
the Borrower on any day, PROVIDED that (i) if there are two or more Borrowings
on a single day by the Borrower which consist of Eurocurrency Loans, each such
Borrowing shall have a different initial Interest Period, (ii) only one
Borrowing may be made under the Swing Line Facility on any day, and (iii) at no
time shall there be more than 8 Borrowings of Eurocurrency Loans outstanding
hereunder.
(b) All Borrowings under the Revolving Facility shall be made by the
Lenders having Revolving Commitments PRO RATA on the basis of their respective
Revolving Commitments. It is understood that no Lender shall be responsible for
any default by any other Lender in its obligation to make Loans hereunder and
that each Lender shall be obligated to make the Loans provided to be made by it
hereunder, regardless of the failure of any other Lender to fulfill its
Commitment hereunder.
2.3. PROCEDURES FOR BORROWING AND DISBURSEMENT OF FUNDS. (a) NOTICE OF
BORROWING. Whenever the Borrower desires to incur Loans, it shall give the
Administrative Agent at its Notice Office,
(A) BORROWINGS OF PRIME RATE LOANS UNDER THE REVOLVING FACILITY: in
the case of any Borrowing under the Revolving Facility of Prime Rate Loans
to be made hereunder, prior to 12:00 noon (local time at its Notice
Office), at least one Business Day's prior written or telephonic notice
thereof (in the case of telephonic notice, promptly confirmed in writing if
so requested by the Administrative Agent); or
(B) BORROWINGS OF EUROCURRENCY LOANS UNDER THE REVOLVING FACILITY
DENOMINATED IN DOLLARS: in the case of any Borrowing under the Revolving
Facility of Eurocurrency Loans denominated in Dollars to be made hereunder,
prior to 12:00 noon (local time at its Notice Office), at least three
Business Days' prior written or telephonic notice thereof (in the case of
telephonic notice, promptly confirmed in writing if so requested by the
Administrative Agent); or
(C) BORROWINGS OF EUROCURRENCY LOANS UNDER THE REVOLVING FACILITIES
DENOMINATED IN AN ALTERNATIVE CURRENCY: in the case of any Borrowing under
the Revolving Facility of Eurocurrency Loans denominated in an Alternative
Currency to be made hereunder, prior to 12:00 noon (local time at its
Notice Office), at least five Business Days' prior written or telephonic
notice thereof (in the case of telephonic notice, promptly confirmed in
writing if so requested by the Administrative Agent); or
(D) BORROWINGS UNDER THE SWING LINE FACILITY: in the case of any
Borrowing under the Swing Line Facility of (1) a Prime Rate Loan to be made
hereunder, prior to 1:00 P.M. (local time at its Notice Office), at least
same Business Day's prior written or telephonic notice thereof (in the case
of telephonic notice, promptly confirmed in writing if so requested by the
Administrative Agent); or (2) a Money Market Rate Loan to be made
hereunder, if the Administrative Agent shall have furnished the Borrower
with a Quoted Rate therefor, prior to 1:00 P.M. (local time at its Notice
Office), at least same Business Day's prior written or telephonic notice
thereof (in the case of telephonic notice, promptly confirmed in writing if
so requested by the Administrative Agent), which proposed Borrowing shall
be within such period as the Administrative Agent shall have specified for
such Quoted Rate.
Each such notice (each such notice, a "NOTICE OF BORROWING") shall (if requested
by the Administrative Agent to be confirmed in writing), be substantially in the
form of Exhibit B-1, and in any event shall be irrevocable and shall specify:
(i) the aggregate principal amount of the Loans to be made pursuant to such
Borrowing; (ii) the date of the Borrowing (which shall be a Business Day); (iii)
whether the Borrowing shall consist of Prime Rate Loans, Eurocurrency Loans or a
Money Market Rate Loan; (iv) if the Borrowing consists of a Swing Line Loan
which is a Money Market Rate Loan, the Quoted Rate therefor; (v) if the
requested Borrowing consists of Eurocurrency Loans, the Interest Period to be
initially applicable thereto; and (vi) in the case of a requested Borrowing of
Revolving Loans consisting of Loans which are Eurocurrency Loans whether the
Loans are to be denominated in Dollars or Alternative Currency. The stated
maturity date of any Swing Line Loan shall be the Business Day which immediately
follows the date such Swing Line Loan is made, subject to any reborrowing
thereof as provided in section 2.1(b). The Administrative Agent shall promptly
give each Lender written notice (or telephonic notice
23
promptly confirmed in writing) of each proposed Revolving Borrowing, of such
Lender's proportionate share thereof and of the other matters covered by the
Notice of Borrowing relating thereto.
(B) BORROWINGS OF EUROCURRENCY LOANS DENOMINATED IN ALTERNATIVE CURRENCY.
In the case of a proposed Borrowing comprised of Revolving Loans which are
Eurocurrency Loans denominated in Alternative Currency, the obligation of each
affected Lender to make its Eurocurrency Loan in Alternative Currency as part of
such Borrowing is subject to the confirmation by the Administrative Agent to the
Borrower not later than the fourth Business Day before the requested date of
such Borrowing that such Alternative Currency is readily and freely transferable
and convertible into Dollars. If the Administrative Agent shall not have
provided the confirmation referred to above the Administrative Agent shall
promptly notify the Borrower and each Lender, whereupon the Borrower may by
notice to the Administrative Agent not later than the third Business Day before
the requested date of such Borrowing, withdraw the Notice of Borrowing relating
to such requested Borrowing. If the Borrower does so withdraw such Notice of
Borrowing, the Borrowing requested in such Notice of Borrowing shall not occur
and the Administrative Agent shall promptly so notify each Lender. If the
Borrower does not so withdraw such Notice of Borrowing, the Administrative Agent
shall promptly so notify each Lender and such Notice of Borrowing shall be
deemed to be a Notice of Borrowing which requests a Borrowing of Loans comprised
of Eurocurrency Loans in an aggregate amount in Dollars equivalent, on the date
the Administrative Agent so notifies each Lender, to the amount of the
originally requested Borrowing in Alternative Currency and in such notice by the
Administrative Agent to each Lender the Administrative Agent shall state such
aggregate equivalent amount of such Borrowing in Dollars and such Lender's
ratable portion of such Borrowing.
(C) BORROWINGS OF MONEY MARKET RATE LOANS. Whenever the Borrower proposes
to submit a Notice of Borrowing with respect to a Swing Line Loan which will be
a Money Market Rate Loan, it will prior to submitting such Notice of Borrowing
notify the Administrative Agent of its intention and request the Administrative
Agent to quote a fixed or floating interest rate (the "QUOTED RATE") to be
applicable thereto prior to the proposed maturity thereof. The Administrative
Agent will immediately so notify the Swing Line Lender, and if the Swing Line
Lender is agreeable to a particular interest rate for the proposed Money Market
Rate Loan if such Loan is made on or prior to a specified date, the
Administrative Agent shall quote such interest rate to the Borrower as the
Quoted Rate applicable to such proposed Money Market Rate Loan if made on or
before such specified date for a maturity of one Business Day as so proposed by
the Borrower. The Swing Line Lender contemplates that any Quoted Rate will be a
rate of interest which reflects a margin corresponding to (or greater than) the
Applicable Eurocurrency Margin in effect at the time of quotation of any Quoted
Rate over the then prevailing fully absorbed average cost of funds of the Swing
Line Lender, Federal Funds Effective Rate, commercial paper, call money,
overnite repurchase or other commonly quoted interest rate, in each case as
selected by the Swing Line Lender. Nothing herein shall be deemed to permit any
Lender other than the Swing Line Lender any right of approval with respect to a
Quoted Rate.
(D) ACTIONS BY ADMINISTRATIVE AGENT ON TELEPHONE NOTICE. Without in any way
limiting the obligation of the Borrower to confirm in writing any telephonic
notice permitted to be given hereunder, the Administrative Agent may act prior
to receipt of written confirmation without liability upon the basis of such
telephonic notice believed by the Administrative Agent in good faith to be from
an Authorized Officer of the Borrower entitled to give telephonic notices under
this Agreement on behalf of the Borrower. In each such case, the Administrative
Agent's record of the terms of such telephonic notice shall be conclusive absent
manifest error.
(E) DISBURSEMENT OF FUNDS. (i) No later than 2:00 P.M. (local time at the
Payment Office) on the date specified in each Notice of Borrowing, each Lender
will make available its PRO RATA share, if any, of each Borrowing requested to
be made on such date in the manner provided below. All amounts shall be made
available to the Administrative Agent in Dollars or Alternative Currency, as
applicable, and in immediately available funds at the Payment Office and the
Administrative Agent promptly will make available to the Borrower by depositing
to its account at the Payment Office the aggregate of the amounts so made
available in the type of funds received.
(ii) Unless the Administrative Agent shall have been notified by any
Lender prior to the date of Borrowing that such Lender does not intend to
make available to the Administrative Agent its portion of the Borrowing or
Borrowings to be made on such date, the Administrative Agent may assume
that such Lender has made such amount available to the Administrative Agent
on such date of Borrowing, and the Administrative Agent, in reliance upon
such assumption, may (in its sole discretion and without any obligation to
do so) make available to the Borrower a corresponding amount. If such
corresponding
24
amount is not in fact made available to the Administrative Agent by such
Lender and the Administrative Agent has made available same to the
Borrower, the Administrative Agent shall be entitled to recover such
corresponding amount from such Lender. If such Lender does not pay such
corresponding amount forthwith upon the Administrative Agent's demand
therefor, the Administrative Agent shall promptly notify the Borrower, and
the Borrower shall immediately pay such corresponding amount to the
Administrative Agent. The Administrative Agent shall also be entitled to
recover from such Lender or the Borrower, as the case may be, interest on
such corresponding amount in respect of each day from the date such
corresponding amount was made available by the Administrative Agent to the
Borrower to the date such corresponding amount is recovered by the
Administrative Agent, at a rate per annum equal to (x) if paid by such
Lender, the overnight Federal Funds Effective Rate, in the case of any Loan
denominated in Dollars, or at the weighted average overnight or weekend
borrowing rate for immediately available and freely transferable funds in
the applicable Alternative Currency which is offered to the Administrative
Agent in the international markets, in the case of any Loan denominated in
Alternative Currency, or (y) if paid by the Borrower, the then applicable
rate of interest, calculated in accordance with section 2.7, for the
respective Loans (but without any requirement to pay any amounts in respect
thereof pursuant to section 2.10).
(iii) Nothing in this section 2.3(e) and no subsequent termination of
the Commitments pursuant to section 4.2 or 4.3 shall be deemed to relieve
any Lender from its obligation to fulfill its Commitment hereunder and in
existence from time to time or to prejudice any rights which the Borrower
may have against any Lender as a result of any default by such Lender
hereunder.
2.4. REFUNDING OF, OR PARTICIPATION IN, SWING LINE LOANS. (a) If any Event
of Default exists, the Swing Line Lender may, in its sole and absolute
discretion, direct that the Swing Line Loans owing to it be refunded by
delivering a notice to such effect to the Administrative Agent, specifying the
aggregate principal amount thereof (a "NOTICE OF SWING LINE REFUNDING").
Promptly upon receipt of a Notice of Swing Line Refunding, the Administrative
Agent shall give notice of the contents thereof to the Lenders and, unless an
Event of Default specified in section 10.1(h) in respect of the Borrower has
occurred, also to the Borrower. Each such Notice of Swing Line Refunding shall
be deemed to constitute delivery by the Borrower of a Notice of Borrowing
requesting Revolving Loans denominated in Dollars and consisting of Prime Rate
Loans in the amount of the Swing Line Loans to which it relates. Each Lender
with a Revolving Commitment (including the Swing Line Lender in its capacity as
a Lender) hereby unconditionally agrees (notwithstanding that any of the
conditions specified in section 6.2 hereof or elsewhere in this Agreement shall
not have been satisfied, but subject to the provisions of paragraph (b) below)
to make a Revolving Loan to the Borrower in an amount equal to such Lender's
Revolving Facility Percentage of the aggregate Dollar amount of the Swing Line
Loans to which such Notice of Swing Line Refunding relates. Each such Lender
shall make the amount of such Revolving Loan available to the Administrative
Agent in immediately available funds at the Payment Office not later than 2:00
P.M. (local time at the Payment Office), if such notice is received by such
Lender prior to 11:00 A.M. (local time at its Domestic Lending Office), or not
later than 2:00 P.M. (local time at the Payment Office) on the next Business
Day, if such notice is received by such Lender after such time. The proceeds of
such Revolving Loans shall be made immediately available to the Swing Line
Lender and applied by it to repay the principal amount of the Swing Line Loans
to which such Notice of Swing Line Refunding related.
(b) If prior to the time a Revolving Loan would otherwise have been made as
provided above as a consequence of a Notice of Swing Line Refunding, any of the
events specified in section 10.1(h) shall have occurred in respect of the
Borrower or one or more of the Lenders with Revolving Commitments shall
determine that it is legally prohibited from making a Revolving Loan under such
circumstances, each Lender (other than the Swing Line Lender), or each Lender
(other than the Swing Line Lender) so prohibited, as the case may be, shall, on
the date such Revolving Loan would have been made by it (the "PURCHASE DATE"),
purchase an undivided participating interest in the outstanding Swing Line Loans
to which such Notice of Swing Line Refunding related, in an amount (the "SWING
LINE PARTICIPATION AMOUNT") equal to such Lender's Revolving Facility Percentage
of such Swing Line Loans. On the Purchase Date, each such Lender or each such
Lender so prohibited, as the case may be, shall pay to the Swing Line Lender in
immediately available funds, such Lender's Swing Line Participation Amount, and
promptly upon receipt thereof the Swing Line Lender shall, if requested by such
other Lender, deliver to such Lender a participation certificate, dated the date
of the Swing Line Lender's receipt of the funds from, and evidencing such
Lender's participating interest in such Swing Line Loans and its Swing Line
Participation Amount
25
in respect thereof. If any amount required to be paid by a Lender to the Swing
Line Lender pursuant to the above provisions in respect of any Swing Line
Participation Amount is not paid on the date such payment is due, such Lender
shall pay to the Swing Line Lender on demand interest on the amount not so paid
at the overnight Federal Funds Effective Rate from the due date until such
amount is paid in full.
(c) Whenever, at any time after the Swing Line Lender has received from any
other Lender such Lender's Swing Line Participation Amount, the Swing Line
Lender receives any payment from or on behalf of the Borrower on account of the
related Swing Line Loans, the Swing Line Lender will promptly distribute to such
Lender its Revolving Facility Percentage of such payment on account of its Swing
Line Participation Amount (appropriately adjusted, in the case of interest
payments, to reflect the period of time during which such Lender's participating
interest was outstanding and funded); PROVIDED, HOWEVER, that in the event such
payment received by the Swing Line Lender is required to be returned, such
Lender will return to the Swing Line Lender any portion thereof previously
distributed to it by the Swing Line Lender.
(d) Each Lender's obligation to make Revolving Loans and/or to purchase
participations in connection with a Notice of Swing Line Refunding (which shall
in all events be within such Lender's Unutilized Revolving Commitment, taking
into account all outstanding participations in connection with Swing Line
Refundings) shall be subject to the conditions that:
(i) such Lender shall have received a Notice of Swing Line Refunding
complying with the provisions hereof, and
(ii) at the time the Swing Line Loans which are the subject of such
Notice of Swing Line Refunding were made, the Swing Line Lender had no
actual written notice from another Lender notifying the Swing Line Lender
that an Event of Default had occurred and was continuing under this
Agreement and that any further increases in the aggregate principal amount
of Swing Line Loans would not be entitled to the benefit of the
participation arrangements provided in this section 2.4,
but otherwise shall be absolute and unconditional, shall be solely for the
benefit of the Swing Line Lender and shall not be affected by any circumstance,
including, without limitation, (A) any set-off, counterclaim, recoupment,
defense or other right which such Lender may have against any other Lender, any
Credit Party, or any other Person, or any Credit Party may have against any
Lender or other Person, as the case may be, for any reason whatsoever; (B) the
occurrence or continuance of a Default or Event of Default; (C) any event or
circumstance involving a Material Adverse Effect upon the Borrower; (D) any
breach of any Credit Document by any party thereto; or (E) any other
circumstance, happening or event, whether or not similar to any of the
foregoing.
2.5. NOTES; LOAN ACCOUNTS (a) FORMS OF NOTES. The obligation of the
Borrower to pay the principal of, and interest on, the Loans made to it by each
Lender shall be evidenced hereunder and (i) if a Revolving Loan, and if so
requested by any Lender with a Revolving Commitment, by a promissory note of the
Borrower substantially in the form of Exhibit A-1 with blanks appropriately
completed in conformity herewith (each a "REVOLVING NOTE" and, collectively, the
"REVOLVING NOTES"), and (ii) if a Swing Line Loan, by a promissory note of the
Borrower substantially in the form of Exhibit A-2 with blanks appropriately
completed in conformity herewith (the "SWING LINE NOTE").
(B) REVOLVING NOTES. The Revolving Note issued by the Borrower to a Lender
with a Revolving Commitment shall: (i) be executed only by the Borrower; (ii) be
payable to the order of such Lender and be dated on or prior to the Closing
Date; (iii) be payable in the principal amount of Revolving Loans evidenced
thereby; (iv) mature on the Maturity Date; (v) bear interest as provided in
section 2.7 in respect of the Prime Rate Loans or Eurocurrency Loans, as the
case may be, evidenced thereby; (vi) be subject to mandatory prepayment as
provided in section 5.2; and (vii) be entitled to the benefits of this Agreement
and the other Credit Documents.
(C) SWING LINE NOTE. The Swing Line Revolving Note issued to the Swing Line
Lender shall: (i) be executed by the Borrower; (ii) be payable to the order of
such Lender and be dated on or prior to the date the first Loan evidenced
thereby is made; (iii) be in a stated principal amount equal to the Swing Line
Commitment of such Lender and be payable in the principal amount of Swing Line
Loans evidenced thereby; (iv) mature as to any Swing Line Loan evidenced thereby
on the first Business Day following the date such Swing Line Loan was made; (v)
bear
26
interest as provided in section 2.7 in respect of the Prime Rate Loans or Money
Market Rate Loans, as the case may be, evidenced thereby; (vi) be subject to
mandatory prepayment as provided in section 5.2; and (vii) be entitled to the
benefits of this Agreement and the other Credit Documents.
(D) LOAN ACCOUNTS OF LENDERS. Each Lender shall maintain in accordance with
its usual practice an account or accounts evidencing the indebtedness of the
Borrower to such Lender resulting from each Loan made by such Lender, including
the amounts of principal and interest payable and paid to such Lender from time
to time hereunder.
(E) LOAN ACCOUNTS OF ADMINISTRATIVE AGENT. The Administrative Agent shall
maintain accounts in which it shall record (i) the amount of each Loan made
hereunder, the Type thereof, and the particular Facility under which such Loan
was made, (ii) the Interest Period and applicable interest rate if such Loan is
a Eurocurrency Loan, (iii) the maturity date and interest rate if such Loan is a
Swing Line Loan, (iv) the amount of any principal due and payable or to become
due and payable from the Borrower to each Lender hereunder, and (v) the amount
of any sum received by the Administrative Agent hereunder for the account of the
Lenders and each Lender's share thereof.
(F) EFFECT OF LOAN ACCOUNTS, ETC. The entries made in the accounts
maintained pursuant to section 2.5(d) and (e) shall be PRIMA FACIE evidence of
the existence and amounts of payments and amounts of the obligations recorded
therein; PROVIDED, that the failure of any Lender or the Administrative Agent to
maintain such accounts or any error therein shall not in any manner affect the
obligation of the Borrower to repay or prepay the Loans in accordance with the
terms of this Agreement.
(G) ENDORSEMENTS OF AMOUNTS ON NOTES PRIOR TO TRANSFER. Each Lender will,
prior to any transfer of any of the Notes issued to it by the Borrower, endorse
on the reverse side thereof or the grid attached thereto the outstanding
principal amount of Loans evidenced thereby. Failure to make any such notation
or any error in any such notation shall not affect the Borrower's obligations in
respect of such Loans.
2.6. VOLUNTARY CONVERSIONS OF REVOLVING LOANS DENOMINATED IN DOLLARS.
The Borrower shall have the option to Convert on any Business Day all or a
portion at least equal to the applicable Minimum Borrowing Amount of the
outstanding principal amount of its Revolving Loans denominated in Dollars of
one Type owing by it into a Revolving Borrowing or Revolving Borrowings of
another Type of Loans denominated in Dollars, PROVIDED that:
(i) any Conversion of Eurocurrency Loans into Prime Rate Loans shall
be made on, and only on, the last day of an Interest Period for such
Eurocurrency Loans;
(ii) Prime Rate Loans may only be Converted into Eurocurrency Loans if
no Default under section 10.1(a) or Event of Default is in existence on the
date of the Conversion unless the Required Lenders otherwise agree;
(iii) Prime Rate Loans may not be Converted into Eurocurrency Loans
during any period when such Conversion is not permitted under section 2.9;
and
(iv) Borrowings of Eurocurrency Loans resulting from this section 2.6
shall conform to the requirements of section 2.2.
Each such Conversion shall be effected by the Borrower giving the Administrative
Agent at its Notice Office, prior to 12:00 noon (local time at such Notice
Office), at least three Business Days', in the case of Conversion into a
Eurocurrency Loans (or prior to 12:00 noon (local time at such Notice Office)
same Business Day's, in the case of a Conversion into Prime Rate Loans), prior
written notice (or telephonic notice promptly confirmed in writing if so
requested by the Administrative Agent) (each a "NOTICE OF CONVERSION"),
substantially in the form of Exhibit B-2, specifying the Revolving Loans to be
so Converted, the Type of Loans to be Converted into and, if to be Converted
into a Borrowing of Eurocurrency Loans, the Interest Period to be initially
applicable thereto. The Administrative Agent shall give each Lender prompt
notice of any such proposed Conversion. For the avoidance of doubt, the
27
prepayment or repayment of any Revolving Loans out of the proceeds of other
Revolving Loans by the Borrower is not considered a Conversion of Revolving
Loans into other Revolving Loans. Revolving Loans denominated in Alternative
Currency may be continued as Revolving Loans denominated in Alternative
Currency, bearing interest based on the Eurocurrency Rate, at the end of any
relevant Interest Period.
2.7. INTEREST. (a) INTEREST ON PRIME RATE LOANS. During such periods as a
Revolving Loan is a Prime Rate Loan, it shall bear interest at a fluctuating
rate per annum which shall at all times be equal to the Prime Rate in effect
from time to time PLUS the Applicable Prime Rate Margin in effect from time to
time for such Revolving Loan.
(B) INTEREST ON EUROCURRENCY LOANS. During such periods as a Revolving Loan
is a Eurocurrency Loan, it shall bear interest at a rate per annum which shall
at all times during an Interest Period therefor be the relevant Eurocurrency
Rate for such Eurocurrency Loan for such Interest Period PLUS the Applicable
Eurocurrency Margin in effect from time to time for such Revolving Loan.
(C) INTEREST ON MONEY MARKET RATE LOANS. During such periods as a Swing
Line Loan is a Money Market Rate Loan, it shall bear interest until maturity
(whether by acceleration or otherwise) at the rate per annum which shall be
equal to the Quoted Rate therefor.
(D) DEFAULT INTEREST. Notwithstanding the above provisions, if a Default
under section 10.1(a) or Event of Default is in existence, all outstanding
amounts of principal and, to the extent permitted by law, all overdue interest,
in respect of each Loan shall (i) at the election of the Required Lenders bear
interest, payable on demand, at a rate per annum equal to 2% per annum above the
interest rate which is or would be applicable from time to time pursuant to
section 2.7(a) or (ii) in the event such an election is not made by the Required
Lenders, at the rate specified in subpart (C) of section 2.7(g). If any amount
(other than the principal of and interest on the Loans) payable by the Borrower
under the Credit Documents is not paid when due, such amount shall at the option
of the Required Lenders bear interest, payable on demand, at a rate per annum
equal to 2% per annum above the interest rate which is or would be applicable
from time to time pursuant to section 2.7(a).
(E) ACCRUAL AND PAYMENT OF INTEREST. Interest shall accrue from and
including the date of any Borrowing to but excluding the date of any prepayment
or repayment thereof and shall be payable:
(i) in respect of any Swing Line Loan, monthly in arrears on the first
Business Day of the next succeeding month;
(ii) in respect of each Prime Rate Loan under the Revolving Facility,
quarterly in arrears on each April 1, July 1, October 1 and January 1, and
(iii) in respect of each Eurocurrency Loan under the Revolving
Facility, on the last day of each Interest Period applicable thereto and,
in the case of an Interest Period in excess of three months, on the dates
which are successively three months after the commencement of such Interest
Period, and
(iv) in the case of any Loan under any Facility, on any repayment,
prepayment or Conversion (on the amount repaid, prepaid or Converted), at
maturity (whether by acceleration or otherwise) and, after such maturity,
on demand.
(F) COMPUTATIONS OF INTEREST. All computations of interest hereunder shall
be made in accordance with section 12.7(b).
(G) INTEREST RATE MARGINS. As used herein the terms "APPLICABLE PRIME RATE
MARGIN", "APPLICABLE EUROCURRENCY MARGIN" and "APPLICABLE COMMITMENT FEE" shall
mean the particular rate per annum determined by the Administrative Agent in
accordance with the Pricing Grid Table which appears below (the "PRICING GRID
TABLE"), based on the Borrower's ratio of Consolidated Total Debt to
Consolidated EBITDA, as computed in accordance with section 9.7 hereof, and such
Pricing Grid Table, and the following provisions:
28
(A) Initially, until changed hereunder in accordance with the
following provisions, the Applicable Prime Rate Margin for Revolving Loans
and Swing Line Loans will be 0 basis points per annum, the Applicable
Eurocurrency Margin for Revolving Loans will be 100 basis points per annum,
and the Applicable Commitment Fee shall be 25 basis points per annum.
(B) Commencing with the fiscal quarter of the Borrower ended on or
nearest to December 31, 2005, and continuing with each fiscal quarter
thereafter, the Administrative Agent will determine the Applicable Prime
Rate Margin or Applicable Eurocurrency Margin for any Revolving Loan or
Swing Line Loan and the Applicable Commitment Fee in accordance with the
Pricing Grid Table, based on the Borrower's ratio of (x) Consolidated Total
Debt as of the end of the fiscal quarter, to (y) Consolidated EBITDA for
the Testing Period ended on the last day of the fiscal quarter, as computed
in accordance with section 9.7 hereof, and identified in such Pricing Grid
Table. Changes in the Applicable Prime Rate Margin, Applicable Eurocurrency
Margin or Applicable Commitment Fee based upon changes in such ratio shall
become effective on the first day of the month following the receipt by the
Administrative Agent pursuant to section 8.1(a) or (b) of the financial
statements of the Borrower, accompanied by the certificate and calculations
referred to in section 8.1(c), demonstrating the computation of such ratio,
based upon the ratio in effect at the end of the applicable period covered
(in whole or in part) by such financial statements.
(C) Notwithstanding the above provisions and subject to section
2.7(d), during any period when (1) the Borrower has failed to timely
deliver its consolidated financial statements referred to in section 8.1(a)
or (b), accompanied by the certificate and calculations referred to in
section 8.1(c), (2) a Default under section 10.1(a) has occurred and is
continuing, or (3) an Event of Default has occurred and is continuing, the
Applicable Prime Rate Margin and the Applicable Eurocurrency Margin for
Revolving Loans and Swing Line Loans and the Applicable Commitment Fee
shall be the highest rate per annum indicated therefor in the Pricing Grid
Table, regardless of the Borrower's ratio of Consolidated Total Debt to
Consolidated EBITDA at such time.
(D) Any changes in the Applicable Prime Rate Margin or Applicable
Eurocurrency Margin for Revolving Loans or Swing Line Loans and the
Applicable Commitment Fee shall be determined by the Administrative Agent
in accordance with the above provisions and the Administrative Agent will
promptly provide notice of such determinations to the Borrower and the
Lenders. Any such determination by the Administrative Agent pursuant to
this section 2.7(g) shall be conclusive and binding absent manifest error.
PRICING GRID TABLE
FOR
REVOLVING LOANS AND SWING LINE LOANS
(EXPRESSED IN BASIS POINTS)
RATIO OF
CONSOLIDATED TOTAL DEBT APPLICABLE APPLICABLE
TO APPLICABLE PRIME EUROCURRENCY COMMITMENT FEE
CONSOLIDATED EBITDA RATE MARGIN MARGIN RATE
----------------------- ---------------- ------------ --------------
Equal to or greater than 3.00 0 100 25.0
Equal to or greater than 2.50 and less than 3.00 0 80 20.0
Equal to or greater than 2.00 and less than 2.50 0 70 17.5
29
RATIO OF
CONSOLIDATED TOTAL DEBT APPLICABLE APPLICABLE
TO APPLICABLE PRIME EUROCURRENCY COMMITMENT FEE
CONSOLIDATED EBITDA RATE MARGIN MARGIN RATE
----------------------- ---------------- ------------ --------------
Equal to or greater than 1.50 and less than 2.00 0 60 15.0
Less than 1.50 0 50 12.5
(H) INFORMATION AS TO INTEREST RATES. The Administrative Agent upon
determining the interest rate for any Borrowing shall promptly notify the
Borrower and the Lenders thereof. If the Administrative Agent is unable to
determine the Eurocurrency Rate for any Borrowing of Eurocurrency Loans based on
the quotation service referred to in clause (i) of the definition of the term
Eurocurrency Rate, it will promptly so notify the Reference Banks and each
Reference Bank will furnish the Administrative Agent timely information for the
purpose of determining the Eurocurrency Rate for such Borrowing. If any one or
more of the Reference Banks shall not timely furnish such information, the
Administrative Agent shall determine the Eurocurrency Rate for such Borrowing on
the basis of timely information furnished by the remaining Reference Banks.
2.8. SELECTION AND CONTINUATION OF INTEREST PERIODS. (a) The Borrower shall
have the right
(x) at the time it gives a Notice of Borrowing or Notice of Conversion
in respect of the making of, or Conversion into, a Borrowing of
Eurocurrency Loans, to select in such Notice the Interest Period to be
applicable to such Borrowing, and
(y) prior to 12:00 noon (local time at the Notice Office) on the third
Business Day prior to the expiration of an Interest Period applicable to a
Borrowing under the Revolving Facility of Eurocurrency Loans, to elect by
giving the Administrative Agent written or telephonic notice (in the case
of telephonic notice, promptly confirmed in writing if so requested by the
Administrative Agent) to Continue all or the Minimum Borrowing Amount of
the principal amount of such Revolving Loans as one or more Borrowings of
Eurocurrency Loans and to select the Interest Period to be applicable to
any such Borrowing (any such notice, a "NOTICE OF CONTINUATION"),
which Interest Period shall, at the option of the Borrower, be a one, two, three
or six month period; PROVIDED, that notwithstanding anything to the contrary
contained above, the Borrower's right to select an Interest Period or to effect
any Continuation shall be subject to the applicable provisions of section 2.9
and to the following:
(i) the initial Interest Period for any Borrowing of Eurocurrency
Loans shall commence on the date of such Borrowing (the date of a Borrowing
resulting from a Conversion or Continuation shall be the date of such
Conversion or Continuation) and each Interest Period occurring thereafter
in respect of such Borrowing shall commence on the day on which the next
preceding Interest Period expires;
(ii) if any Interest Period begins on a day for which there is no
numerically corresponding day in the calendar month at the end of such
Interest Period, such Interest Period shall end on the last Business Day of
such calendar month;
(iii) if any Interest Period would otherwise expire on a day which is
not a Business Day, such Interest Period shall expire on the next
succeeding Business Day, PROVIDED that if any Interest Period would
otherwise expire on a day which is not a Business Day but is a day of the
month after which no further Business Day occurs in such month, such
Interest Period shall expire on the next preceding Business Day;
30
(iv) no Interest Period for any Eurocurrency Loan may be selected
which would end after the Maturity Date applicable thereto;
(v) each Borrowing resulting from a Continuation shall be in at least
the Minimum Borrowing Amount applicable thereto; and
(vi) no Interest Period may be elected at any time when a Default
under section 10.1(a) or an Event of Default is then in existence unless
the Required Lenders otherwise agree.
(b) If upon the expiration of any Interest Period the Borrower has failed
to (or may not) elect a new Interest Period to be applicable to the respective
Borrowing of Eurocurrency Loans as provided above, in the case of any such
Eurocurrency Loans which are denominated in Dollars, the Borrower shall be
deemed to have elected to convert such Borrowing to Prime Rate Loans effective
as of the expiration date of such current Interest Period, and in the case of
any such Eurocurrency Loans which are denominated in Alternative Currency, the
Borrower shall be deemed to have elected effective as of the expiration date of
such current Interest Period to continue such Loans in such Alternative Currency
with an Interest Period of one month.
2.9. INCREASED COSTS, ILLEGALITY, ETC. (a) In the event that (x) in the
case of clause (i) below, the Administrative Agent or (y) in the case of clauses
(ii) and (iii) below, any Lender, shall have determined on a reasonable basis
(which determination shall, absent manifest error, be final and conclusive and
binding upon all parties hereto):
(i) on any date for determining the Eurocurrency Rate for Eurocurrency
Loans denominated in Dollars or in Alternative Currency for any Interest
Period that, by reason of any changes arising after the Effective Date
affecting the interbank Eurocurrency market, adequate and fair means do not
exist for ascertaining the applicable interest rate on the basis provided
for in the definition of Eurocurrency Rate; or
(ii) at any time, that such Lender shall incur increased costs or
reductions in the amounts received or receivable hereunder in an amount
which such Lender deems material with respect to any Eurocurrency Loans
(other than any increased cost or reduction in the amount received or
receivable resulting from the imposition of or a change in the rate of
taxes or similar charges) because of (x) any change since the Effective
Date in any applicable law, governmental rule, regulation, guideline, order
or request (whether or not having the force of law), or in the
interpretation or administration thereof and including the introduction of
any new law or governmental rule, regulation, guideline, order or request
(such as, for example, but not limited to, a change in official reserve
requirements, but, in all events, excluding reserves includable in the
Eurocurrency Rate pursuant to the definition thereof) and/or (y) other
circumstances adversely affecting the interbank Eurocurrency market or the
position of such Lender in such market; or
(iii) at any time, that the making or continuance of any Eurocurrency
Loan denominated in Dollars or in Alternative Currency has become unlawful
by compliance by such Lender in good faith with any change since the
Effective Date in any law, governmental rule, regulation, guideline or
order, or the interpretation or application thereof, or would conflict with
any thereof not having the force of law but with which such Lender
customarily complies or has become impracticable as a result of a
contingency occurring after the Effective Date which materially adversely
affects the interbank Eurocurrency market;
THEN, and in any such event, such Lender (or the Administrative Agent in the
case of clause (i) above) shall (x) on or promptly following such date or time
and (y) within 10 Business Days of the date on which such event no longer exists
give notice (by telephone confirmed in writing) to the Borrower and to the
Administrative Agent of such determination (which notice the Administrative
Agent shall promptly transmit to each of the other applicable Lenders).
Thereafter (x) in the case of clause (i) above, Eurocurrency Loans shall no
longer be available in the applicable currency until such time as the
Administrative Agent notifies the Borrower and the applicable Lenders that the
circumstances giving rise to such notice by the Administrative Agent no longer
exist, and any Notice of Borrowing, Notice of Conversion or Notice of
Continuation given by the Borrower or with respect to Eurocurrency Loans
denominated in Dollars or in Alternative Currency which have not yet been
incurred, Converted or Continued shall be deemed rescinded or, in the case of a
Notice of Borrowing, shall, at the option of the Borrower, be deemed
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converted into a Notice of Borrowing for Prime Rate Loans to be made on the date
of Borrowing contained in such Notice of Borrowing, (y) in the case of clause
(ii) above, the Borrower shall pay to such Lender, upon written demand therefor,
such additional amounts (in the form of an increased rate of, or a different
method of calculating, interest or otherwise as such Lender shall determine) as
shall be required to compensate such Lender, for such increased costs or
reductions in amounts receivable hereunder (a written notice as to the
additional amounts owed to such Lender, showing the basis for the calculation
thereof, which basis must be reasonable, submitted to the Borrower by such
Lender shall, absent manifest error, be final and conclusive and binding upon
all parties hereto) and (z) in the case of clause (iii) above, the Borrower
shall take one of the actions specified in section 2.9(b) as promptly as
possible and, in any event, within the time period required by law.
(b) At any time that any Eurocurrency Loan denominated in Dollars or in
Alternative Currency is affected by the circumstances described in section
2.9(a)(ii) or (iii), the Borrower may (and in the case of a Eurocurrency Loan
affected pursuant to section 2.9(a)(iii), shall) either (i) if the affected
Eurocurrency Loan is then being made pursuant to a Borrowing, by giving the
Administrative Agent telephonic notice (confirmed promptly in writing) thereof
on the same date that the Borrower was notified by a Lender pursuant to section
2.9(a)(ii) or (iii), cancel said Borrowing, convert the related Notice of
Borrowing into one requesting a Borrowing of Prime Rate Loans or require the
affected Lender to make its requested Revolving Loan as a Prime Rate Loan, or
(ii) if the affected Eurocurrency Loan is then outstanding, upon at least one
Business Day's notice to the Administrative Agent, require the affected Lender
to Convert each such Eurocurrency Loan into a Prime Rate Loan denominated in
Dollars, PROVIDED that if more than one Lender is affected at any time, then all
affected Lenders must be treated the same pursuant to this section 2.9(b).
(c) If any Lender shall have determined that after the Effective Date, the
adoption of any applicable law, rule or regulation regarding capital adequacy,
or any change therein, or any change in the interpretation or administration
thereof by any governmental authority, central bank or comparable agency charged
by law with the interpretation or administration thereof, or compliance by such
Lender or its parent corporation with any request or directive regarding capital
adequacy (whether or not having the force of law) of any such authority, central
bank, or comparable agency, in each case made subsequent to the Effective Date,
has or would have the effect of reducing by an amount reasonably deemed by such
Lender to be material the rate of return on such Lender's or its parent
corporation's capital or assets as a consequence of such Lender's commitments or
obligations hereunder to a level below that which such Lender or its parent
corporation could have achieved but for such adoption, effectiveness, change or
compliance (taking into consideration such Lender's or its parent corporation's
policies with respect to capital adequacy), then from time to time, within 15
days after demand by such Lender (with a copy to the Administrative Agent), the
Borrower shall pay to such Lender such additional amount or amounts as will
compensate such Lender or its parent corporation for such reduction. Each
Lender, upon determining in good faith that any additional amounts will be
payable pursuant to this section 2.9(c), will give prompt written notice thereof
to the Borrower, which notice shall set forth, in reasonable detail, the basis
of the calculation of such additional amounts, which basis must be reasonable,
although the failure to give any such notice shall not release or diminish any
of the Borrower's obligations to pay additional amounts pursuant to this section
2.9(c) upon the subsequent receipt of such notice.
(d) Notwithstanding anything in this Agreement to the contrary, (i) no
Lender shall be entitled to compensation or payment or reimbursement of other
amounts under section 2.9, 3.5 or 5.4 for any amounts incurred or accruing more
than 270 days prior to the giving of notice to the Borrower of additional costs
or other amounts of the nature described in such sections, and (ii) no Lender
shall demand compensation for any reduction referred to in section 2.9(c) or
payment or reimbursement of other amounts under section 3.5 or 5.4 if it shall
not at the time be the general policy or practice of such Lender to demand such
compensation, payment or reimbursement in similar circumstances under comparable
provisions of other credit agreements.
2.10. BREAKAGE COMPENSATION. The Borrower shall compensate each applicable
Lender, upon its written request (which request shall set forth the detailed
basis for requesting and the method of calculating such compensation), for all
reasonable losses, expenses and liabilities (including, without limitation, any
loss, expense or liability incurred by reason of the liquidation or reemployment
of deposits or other funds required by such Lender to fund its Eurocurrency
Loans or Money Market Rate Loans) which such Lender may sustain: (i) if for any
reason (other than a default by such Lender or the Administrative Agent), (A) a
Borrowing of Eurocurrency Loans does not occur on a date specified therefor in a
Notice of Borrowing, Notice of Conversion or Notice of Continuation
32
(whether or not rescinded or withdrawn by or on behalf of the Borrower or deemed
rescinded or withdrawn pursuant to section 2.9(a)), or (B) a Borrowing of Money
Market Rate Loans does not occur on a date specified therefor in a Notice of
Borrowing; (ii) if any repayment, prepayment, Conversion or Continuation of any
of its Eurocurrency Loans occurs on a date which is not the last day of an
Interest Period applicable thereto; (iii) if any repayment or prepayment of any
Money Market Rate Loan occurs on a date which is not the maturity date thereof;
(iv) if any prepayment of any Eurocurrency Loans or Money Market Rate Loans, as
the case may be, is not made on any date specified in a notice of prepayment
given by or on behalf of the Borrower; (v) if the Borrower, pursuant to section
2.11(b) hereof, requires any Lender (other than a Defaulting Lender) to transfer
its Eurocurrency Loans and/or Money Market Rate Loans, as the case may be, on
any date other than the last day of the Interest Period or maturity date
thereof; or (vi) as a consequence of (x) any other default by the Borrower to
repay its Eurocurrency Loans or Money Market Rate Loans, as the case may be,
when required by the terms of this Agreement or (y) an election made pursuant to
section 2.9(b). Such loss, cost, expense and liability to any Lender shall be
deemed to include an amount determined by such Lender to be the excess, if any,
of (i) the amount of interest which would have accrued on the principal amount
of such Loan had such event not occurred, at the interest rate that would have
been applicable to such Loan, for the period from the date of such event to the
last day of the then current Interest Period therefor or the then maturity date
thereof in the case of any Money Market Rate Loan (or, in the case of a failure
to effect a Borrowing, Conversion or Continuation, for the period that would
have been the Interest Period for such Loan or the period to maturity of such
Loan, in the case of a Money Market Rate Loan), over (ii) the amount of interest
which would accrue on such principal amount for such period at the interest rate
which such Lender would bid were it to bid, at the commencement of such period,
for Dollar deposits of a comparable amount and period from other banks in the
London interbank market. A certificate of any Lender setting forth any amount or
amounts that such Lender is entitled to receive pursuant to this section shall
be delivered to the Borrower and shall be conclusive absent convincing evidence
of error. The Borrower shall pay such Lender the amount shown as due on any such
request as soon as practicable but in any event within 30 days after receipt by
the Borrower thereof.
2.11. CHANGE OF LENDING OFFICE; REPLACEMENT OF LENDERS. (a) Each Lender
agrees that, upon the occurrence of any event giving rise to the operation of
section 2.9(a)(ii) or (iii), 2.9(c), 3.5 or 5.4 with respect to such Lender, it
will, if requested by the Borrower, use reasonable efforts (subject to overall
policy considerations of such Lender) to designate another Applicable Lending
Office for any Loans or Commitment affected by such event, PROVIDED that such
designation is made on such terms that such Lender and its Applicable 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 any such
section.
(b) If any Lender requests any compensation, reimbursement or other payment
under section 2.9(a)(ii) or (iii), 2.9(c) or 3.5 with respect to such Lender, or
if the Borrower is required to pay any additional amount to any Lender or
governmental authority pursuant to section 5.4, or if any Lender is a Defaulting
Lender, then the Borrower may, at its sole expense and effort, upon notice to
such Lender and the Administrative Agent, require such Lender to assign and
delegate, without recourse (in accordance with the restrictions contained in
section 12.4(b)), all its interests, rights and obligations under this Agreement
to an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); PROVIDED that (i) the Borrower
shall have received the prior written consent of the Administrative Agent, which
consent shall not be unreasonably withheld, (ii) such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder,
from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Borrower (in the case of all other amounts, including
any breakage compensation under section 2.10 hereof), and (iii) in the case of
any such assignment resulting from a claim for compensation, reimbursement or
other payments required to be made under section 2.9(a)(ii) or (iii), 2.9(c) or
3.5 with respect to such Lender, or resulting from any required payments to any
Lender or governmental authority pursuant to section 5.4, such assignment will
result in a reduction in such compensation, reimbursement or payments. A Lender
shall not be required to make any such assignment and delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances
entitling the Borrower to require such assignment and delegation cease to apply.
(c) Nothing in this section 2.11 shall affect or postpone any of the
obligations of the Borrower or the right of any Lender provided in section 2.9,
3.5 or 5.4.
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SECTION 3. LETTERS OF CREDIT
3.1. LETTERS OF CREDIT. (a) Subject to and upon the terms and conditions
herein set forth, the Borrower may request a Letter of Credit Issuer at any time
and from time to time on or after the Closing Date and prior to the date that is
60 Business Days prior to the Revolving Maturity Date to issue, for the account
of the Borrower or any of its Subsidiaries (the Borrower or any such Subsidiary,
a "LETTER OF CREDIT OBLIGOR"), and in support of worker compensation, liability
insurance, releases of contract retention obligations, contract performance
guarantee requirements and other bonding obligations of the Borrower or any such
other Letter of Credit Obligor incurred in the ordinary course of its business,
and such other standby obligations of the Borrower and the other Letter of
Credit Obligors that are acceptable to the Letter of Credit Issuer, and subject
to and upon the terms and conditions herein set forth, such Letter of Credit
Issuer agrees to issue from time to time, irrevocable standby letters of credit
denominated and payable in Dollars or Alternative Currency in such form as may
be approved by such Letter of Credit Issuer and the Administrative Agent (each
such letter of credit (and each Existing Letter of Credit described in section
3.1(d)), a "LETTER OF CREDIT" and collectively, the "LETTERS OF CREDIT").
(b) Notwithstanding the foregoing, (i) no Letter of Credit shall be issued,
and the Stated Amount of any outstanding Letter of Credit shall not be
increased, if after giving effect thereto the Letter of Credit Outstandings
would exceed either (x) $25,000,000 or (y) when added to the aggregate principal
amount of all Revolving Loans and Swing Line Loans then outstanding, an amount
equal to the Total Revolving Commitment at such time; (ii) no individual Letter
of Credit (other than any Existing Letter of Credit) shall be issued which has
an initial Stated Amount less than $100,000 unless such lesser Stated Amount is
acceptable to the Letter of Credit Issuer; and (iii) each Letter of Credit shall
have an expiry date (including any renewal periods) occurring not later than the
earlier of (A) one year from the date of issuance thereof, unless a longer
period is approved by the relevant Letter of Credit Issuer and Lenders (other
than any Defaulting Lender) holding a majority of the Total Revolving
Commitment, and (B) 15 Business Days prior to the Revolving Maturity Date, in
each case on terms acceptable to the Administrative Agent and the relevant
Letter of Credit Issuer.
(c) Notwithstanding the foregoing, in the event a Lender Default exists, no
Letter of Credit Issuer shall be required to issue any Letter of Credit unless
either (i) such Letter of Credit Issuer has entered into arrangements
satisfactory to it and the Borrower to eliminate such Letter of Credit Issuer's
risk with respect to the participation in Letters of Credit of the Defaulting
Lender or Lenders, including by cash collateralizing such Defaulting Lender's or
Lenders' Revolving Facility Percentage of the Letter of Credit Outstandings; or
(ii) the issuance of such Letter of Credit, taking into account the potential
failure of the Defaulting Lender or Lenders to risk participate therein, will
not cause the Letter of Credit Issuer to incur aggregate credit exposure
hereunder with respect to Revolving Loans and Letter of Credit Outstandings in
excess of its Revolving Commitment, and the Borrower has undertaken, for the
benefit of such Letter of Credit Issuer, pursuant to an instrument satisfactory
in form and substance to such Letter of Credit Issuer, not to thereafter incur
Loans or Letter of Credit Outstandings hereunder which would cause the Letter of
Credit Issuer to incur aggregate credit exposure hereunder with respect to
Revolving Loans and Letter of Credit Outstandings in excess of its Revolving
Commitment.
(d) Annex VI hereto contains a description of all letters of credit
outstanding on, and to continue in effect after, the Closing Date. Each such
letter of credit issued by a bank that is or becomes a Lender under this
Agreement on the Effective Date (each, an "EXISTING LETTER OF CREDIT") shall
constitute a "Letter of Credit" for all purposes of this Agreement, issued, for
purposes of section 3.4(a), on the Closing Date, and the Borrower, the
Administrative Agent and the applicable Lenders hereby agree that, from and
after such date, the terms of this Agreement shall apply to such Letters of
Credit, superseding any other agreement theretofore applicable to them to the
extent inconsistent with the terms hereof.
3.2. LETTER OF CREDIT REQUESTS: NOTICES OF ISSUANCE. (a) Whenever it
desires that a Letter of Credit be issued, the Borrower shall give the
Administrative Agent and the Letter of Credit Issuer written or telephonic
notice (in the case of telephonic notice, promptly confirmed in writing if so
requested by the Administrative Agent) which, if in the form of written notice
shall be substantially in the form of Exhibit B-3, or transmit by electronic
communication (if arrangements for doing so have been approved by the Letter of
Credit Issuer), prior to 12:00 noon (local time at its Notice Office) at least
three Business Days (or such shorter period as may be acceptable to the relevant
Letter of Credit Issuer), in the case of Letters of Credit denominated in
Dollars, or at least five Business Days, in the case of Letters of Credit
denominated in an Alternative Currency, prior to the proposed date of issuance
34
(which shall be a Business Day) (each a "LETTER OF CREDIT REQUEST"), which
Letter of Credit Request shall include such supporting documents that such
Letter of Credit Issuer customarily requires in connection therewith (including,
in the case of a Letter of Credit for an account party other than the Borrower,
an application for, and if applicable a reimbursement agreement with respect to,
such Letter of Credit). Any such documents executed in connection with the
issuance of a Letter of Credit, including the Letter of Credit itself, are
herein referred to as "LETTER OF CREDIT DOCUMENTS". In the event of any
inconsistency between any of the terms or provisions of any Letter of Credit
Document and the terms and provisions of this Agreement respecting Letters of
Credit, the terms and provisions of this Agreement shall control. The
Administrative Agent shall promptly notify each Lender of each Letter of Credit
Request.
(b) Each Letter of Credit Issuer shall, on the date of each issuance of a
Letter of Credit by it, give the Administrative Agent, each applicable Lender
and the Borrower written notice of the issuance of such Letter of Credit,
accompanied by a copy to the Administrative Agent of the Letter of Credit or
Letters of Credit issued by it. Each Letter of Credit Issuer shall provide to
the Administrative Agent a quarterly (or monthly if requested by any applicable
Lender) summary describing each Letter of Credit issued by such Letter of Credit
Issuer and then outstanding and an identification for the relevant period of the
daily aggregate Letter of Credit Outstandings represented by Letters of Credit
issued by such Letter of Credit Issuer.
3.3. AGREEMENT TO REPAY LETTER OF CREDIT DRAWINGS. (a) The Borrower hereby
agrees to reimburse (or cause any Letter of Credit Obligor for whose account a
Letter of Credit was issued to reimburse) each Letter of Credit Issuer, by
making payment directly to such Letter of Credit Issuer in immediately available
funds at the payment office of such Letter of Credit Issuer, for any payment or
disbursement made by such Letter of Credit Issuer under any Letter of Credit
(each such amount so paid or disbursed until reimbursed, an "UNPAID DRAWING")
immediately after, and in any event on the date on which, such Letter of Credit
Issuer notifies the Borrower (or any such other Letter of Credit Obligor for
whose account such Letter of Credit was issued) of such payment or disbursement
(which notice to the Borrower (or such other Letter of Credit Obligor) shall be
delivered reasonably promptly after any such payment or disbursement), such
payment to be made in Dollars (and in the amount which is the Dollar equivalent
of any such payment or disbursement made or denominated in Alternative
Currency), with interest on the amount so paid or disbursed by such Letter of
Credit Issuer, to the extent not reimbursed prior to 1:00 P.M. (local time at
the payment office of the Letter of Credit Issuer) on the date of such payment
or disbursement, from and including the date paid or disbursed to but not
including the date such Letter of Credit Issuer is reimbursed therefor at a rate
per annum which shall be the rate then applicable to Prime Rate Loans (plus an
additional 2% per annum if not reimbursed on the date of such payment or
disbursement), any such interest also to be payable on demand.
(b) The Borrower's obligation under this section 3.3 to reimburse, or cause
another Letter of Credit Obligor to reimburse, each Letter of Credit Issuer with
respect to Unpaid Drawings (including, in each case, interest thereon) shall be
absolute and unconditional under any and all circumstances and irrespective of
any setoff, counterclaim or defense to payment which the Borrower or any other
Letter of Credit Obligor may have or have had against such Letter of Credit
Issuer, the Administrative Agent, any other Letter of Credit Issuer or any
Lender, including, without limitation, any defense based upon the failure of any
drawing under a Letter of Credit to conform to the terms of the Letter of Credit
or any non-application or misapplication by the beneficiary of the proceeds of
such drawing, PROVIDED, HOWEVER that the Borrower shall not be obligated to
reimburse, or cause another Letter of Credit Obligor to reimburse, a Letter of
Credit Issuer for any wrongful payment made by such Letter of Credit Issuer
under a Letter of Credit as a result of acts or omissions constituting willful
misconduct or gross negligence on the part of such Letter of Credit Issuer.
3.4. LETTER OF CREDIT PARTICIPATIONS. (a) Immediately upon the issuance by
a Letter of Credit Issuer of any Letter of Credit (and on the Closing Date with
respect to any Existing Letter of Credit), such Letter of Credit Issuer shall be
deemed to have sold and transferred to each Lender with a Revolving Commitment,
and each such Lender (each a "LC PARTICIPANT") shall be deemed irrevocably and
unconditionally to have purchased and received from such Letter of Credit
Issuer, without recourse or warranty, an undivided interest and participation,
to the extent of such Lender's Revolving Facility Percentage, in such Letter of
Credit, each substitute letter of credit, each drawing made thereunder, the
obligations of the Borrower under this Agreement with respect thereto (although
Letter of Credit Fees shall be payable directly to the Administrative Agent for
the account of the Lenders as provided in section 4.1(b) and the LC Participants
shall have no right to receive any portion of any fees of the nature
35
contemplated by section 4.1(c)), the obligations of any Letter of Credit Obligor
under any Letter of Credit Documents pertaining thereto, and any security for,
or guaranty pertaining to, any of the foregoing. Upon any change in the
Revolving Commitments of the Lenders pursuant to section 12.4(b), it is hereby
agreed that, with respect to all outstanding Letters of Credit and Unpaid
Drawings, there shall be an automatic adjustment to the participations pursuant
to this section 3.4 to reflect the new Revolving Facility Percentages of the
assigning and assignee Lender.
(b) In determining whether to pay under any Letter of Credit, a Letter of
Credit Issuer shall not have any obligation relative to the LC Participants
other than to determine that any documents required to be delivered under such
Letter of Credit have been delivered and that they appear to comply on their
face with the requirements of such Letter of Credit. Any action taken or omitted
to be taken by a Letter of Credit Issuer under or in connection with any Letter
of Credit if taken or omitted in the absence of gross negligence or willful
misconduct, shall not create for such Letter of Credit Issuer any resulting
liability.
(c) In the event that a Letter of Credit Issuer makes any payment under any
Letter of Credit and the Borrower shall not have reimbursed (or caused any
applicable Letter of Credit Obligor to reimburse) such amount in full to such
Letter of Credit Issuer pursuant to section 3.3(a), such Letter of Credit Issuer
shall promptly notify the Administrative Agent, and the Administrative Agent
shall promptly notify each LC Participant of such failure, and each LC
Participant shall promptly and unconditionally pay to the Administrative Agent
for the account of such Letter of Credit Issuer, the amount of such LC
Participant's Revolving Facility Percentage of such payment in Dollars (the
Administrative Agent having determined in the case of any payment by a Letter of
Credit Issuer made in Alternative Currency the equivalent thereof in Dollars)
and in same day funds, PROVIDED, HOWEVER, that no LC Participant shall be
obligated to pay to the Administrative Agent its Revolving Facility Percentage
of such unreimbursed amount for any wrongful payment made by such Letter of
Credit Issuer under a Letter of Credit as a result of acts or omissions
constituting willful misconduct or gross negligence on the part of such Letter
of Credit Issuer. If the Administrative Agent so notifies any LC Participant
required to fund a payment under a Letter of Credit prior to 11:00 A.M. (local
time at its Notice Office) on any Business Day, such LC Participant shall make
available to the Administrative Agent for the account of the relevant Letter of
Credit Issuer such LC Participant's Revolving Facility Percentage of the amount
of such payment on such Business Day in same day funds. If and to the extent
such LC Participant shall not have so made its Revolving Facility Percentage of
the amount of such payment available to the Administrative Agent for the account
of the relevant Letter of Credit Issuer, such LC Participant agrees to pay to
the Administrative Agent for the account of such Letter of Credit Issuer,
forthwith on demand such amount, together with interest thereon, for each day
from such date until the date such amount is paid to the Administrative Agent
for the account of such Letter of Credit Issuer at the Federal Funds Effective
Rate. The failure of any LC Participant to make available to the Administrative
Agent for the account of the relevant Letter of Credit Issuer its Revolving
Facility Percentage of any payment under any Letter of Credit shall not relieve
any other LC Participant of its obligation hereunder to make available to the
Administrative Agent for the account of such Letter of Credit Issuer its
Revolving Facility Percentage of any payment under any Letter of Credit on the
date required, as specified above, but no LC Participant shall be responsible
for the failure of any other LC Participant to make available to the
Administrative Agent for the account of such Letter of Credit Issuer such other
LC Participant's Revolving Facility Percentage of any such payment.
(d) Whenever a Letter of Credit Issuer receives a payment of a
reimbursement obligation as to which the Administrative Agent has received for
the account of such Letter of Credit Issuer any payments from the LC
Participants pursuant to section 3.4(c) above, such Letter of Credit Issuer
shall pay to the Administrative Agent and the Administrative Agent shall
promptly pay to each LC Participant which has paid its Revolving Facility
Percentage thereof, in Dollars and in same day funds, an amount equal to such LC
Participant's Revolving Facility Percentage of the principal amount thereof and
interest thereon accruing after the purchase of the respective participations,
as and to the extent so received.
(e) The obligations of the LC Participants to make payments to the
Administrative Agent for the account of each Letter of Credit Issuer with
respect to Letters of Credit shall be irrevocable and not subject to
counterclaim, set-off or other defense or any other qualification or exception
whatsoever and shall be made in accordance with the terms and conditions of this
Agreement under all circumstances, including, without limitation, any of the
following circumstances:
36
(i) any lack of validity or enforceability of this Agreement or any of
the other Credit Documents;
(ii) the existence of any claim, set-off defense or other right which
the Borrower (or any other Letter of Credit Obligor) may have at any time
against a beneficiary named in a Letter of Credit, any transferee of any
Letter of Credit (or any Person for whom any such transferee may be
acting), the Administrative Agent, any Letter of Credit Issuer, any Lender,
or other Person, whether in connection with this Agreement, any Letter of
Credit, the transactions contemplated herein or any unrelated transactions
(including any underlying transaction between the Borrower (or any other
Letter of Credit Obligor) and the beneficiary named in any such Letter of
Credit), other than any claim which the Borrower (or any other Letter of
Credit Obligor which is the account party with respect to a Letter of
Credit) may have against any applicable Letter of Credit Issuer for gross
negligence or willful misconduct of such Letter of Credit Issuer in making
payment under any applicable Letter of Credit;
(iii) any draft, certificate or other document presented under the
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;
(iv) the surrender or impairment of any security for the performance
or observance of any of the terms of any of the Credit Documents: or
(v) the occurrence of any Default or Event of Default.
(f) To the extent the Letter of Credit Issuer is not indemnified by the
Borrower, the LC Participants will reimburse and indemnify the Letter of Credit
Issuer, in proportion to their respective Revolving Facility Percentages, for
and against any and all liabilities, obligations, losses, damages, penalties,
claims, actions, judgments, costs, expenses or disbursements of whatsoever kind
or nature which may be imposed on, asserted against or incurred by the Letter of
Credit Issuer in performing its respective duties in any way related to or
arising out of its issuance of Letters of Credit, PROVIDED that no LC
Participants shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, claims, actions, judgments, costs, expenses or
disbursements resulting from the Letter of Credit Issuer's gross negligence or
willful misconduct.
3.5. INCREASED COSTS. If after the Effective Date, the adoption of any
applicable law, rule or regulation, or any change therein, or any change in the
interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any Letter of Credit Issuer or any Lender with any
request or directive (whether or not having the force of law) by any such
authority, central bank or comparable agency (in each case made subsequent to
the Effective Date) shall either (i) impose, modify or make applicable any
reserve, deposit, capital adequacy or similar requirement against Letters of
Credit issued by such Letter of Credit Issuer or such Lender's participation
therein, or (ii) shall impose on such Letter of Credit Issuer or any Lender any
other conditions affecting this Agreement, any Letter of Credit or such Lender's
participation therein; and the result of any of the foregoing is to increase the
cost to such Letter of Credit Issuer or such Lender of issuing, maintaining or
participating in any Letter of Credit, or to reduce the amount of any sum
received or receivable by such Letter of Credit Issuer or such Lender hereunder
(other than any increased cost or reduction in the amount received or receivable
resulting from the imposition of or a change in the rate of taxes or similar
charges), then, upon demand to the Borrower by such Letter of Credit Issuer or
such Lender (a copy of which notice shall be sent by such Letter of Credit
Issuer or such Lender to the Administrative Agent), the Borrower shall pay to
such Letter of Credit Issuer or such Lender such additional amount or amounts as
will compensate any such Letter of Credit Issuer or such Lender on an after tax
basis for such increased cost or reduction. A certificate submitted to the
Borrower by any Letter of Credit Issuer or any Lender, as the case may be (a
copy of which certificate shall be sent by such Letter of Credit Issuer or such
Lender to the Administrative Agent), setting forth, in reasonable detail, the
basis for the determination of such additional amount or amounts necessary to
compensate any Letter of Credit Issuer or such Lender as aforesaid shall be
conclusive and binding on the Borrower absent manifest error, although the
failure to deliver any such certificate shall not release or diminish any of the
Borrower's obligations to pay additional amounts pursuant to this section 3.5.
Reference is hereby made to the provisions of section 2.9(d) for certain
limitations upon the rights of a Letter of Credit Issuer or Lender under this
section.
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3.6. GUARANTY OF LETTER OF CREDIT OBLIGATIONS OF OTHER LETTER OF CREDIT
OBLIGORS. (a) The Borrower hereby unconditionally guarantees, for the benefit of
the Administrative Agent and the Lenders, the full and punctual payment of the
Obligations of each other Letter of Credit Obligor under each Letter of Credit
Document to which such other Letter of Credit Obligor is now or hereafter
becomes a party. Upon failure by any such other Letter of Credit Obligor to pay
punctually any such amount, the Borrower shall forthwith on demand by the
Administrative Agent pay the amount not so paid at the place and in the currency
and otherwise in the manner specified in this Agreement or any applicable Letter
of Credit Document.
(b) As a separate, additional and continuing obligation, the Borrower
unconditionally and irrevocably undertakes and agrees, for the benefit of the
Administrative Agent and the Lenders, that, should any amounts not be
recoverable from the Borrower under section 3.6(a) for any reason whatsoever
(including, without limitation, by reason of any provision of any Credit
Document or any other agreement or instrument executed in connection therewith
being or becoming void, unenforceable, or otherwise invalid under any applicable
law) then, notwithstanding any notice or knowledge thereof by any Lender, the
Administrative Agent, any of their respective Affiliates, or any other Person,
at any time, the Borrower as sole, original and independent obligor, upon demand
by the Administrative Agent, will make payment to the Administrative Agent, for
the account of the Lenders and the Administrative Agent, of all such obligations
not so recoverable by way of full payment therefor, in such currency and
otherwise in such manner as is provided in the Credit Documents.
(c) The obligations of the Borrower under this section shall be
unconditional and absolute and, without limiting the generality of the foregoing
shall not be released, discharged or otherwise affected by the occurrence, one
or more times, of any of the following:
(i) any extension, renewal, settlement, compromise, waiver or release
in respect to any obligation of any other Letter of Credit Obligor under
any Letter of Credit Document, by operation of law or otherwise;
(ii) any modification or amendment of or supplement to this Agreement,
any Note or any other Credit Document;
(iii) any release, non-perfection or invalidity of any direct or
indirect security for any obligation of the Borrower under this Agreement,
any Note or any other Credit Document or of any other Letter of Credit
Obligor under any Letter of Credit Document;
(iv) any change in the corporate existence, structure or ownership of
any other Letter of Credit Obligor or any insolvency, bankruptcy,
reorganization or other similar proceeding affecting any other Letter of
Credit Obligor or its assets or any resulting release or discharge of any
obligation of any other Letter of Credit Obligor contained in any Letter of
Credit Document;
(v) the existence of any claim, set-off or other rights which the
Borrower may have at any time against any other Letter of Credit Obligor,
the Administrative Agent, any Lender or any other Person, whether in
connection herewith or any unrelated transactions;
(vi) any invalidity or unenforceability relating to or against any
other Letter of Credit Obligor for any reason of any Letter of Credit
Document, or any provision of applicable law or regulation purporting to
prohibit the payment by any other Letter of Credit Obligor of any
Obligations in respect of any Letter of Credit; or
(vii) any other act or omission to act or delay of any kind by any
other Letter of Credit Obligor, the Administrative Agent, any Lender or any
other Person or any other circumstance whatsoever which might, but for the
provisions of this section, constitute a legal or equitable discharge of
the Borrower's obligations under this section.
(d) The Borrower's obligations under this section shall remain in full
force and effect until the Commitments shall have terminated and the principal
of and interest on the Notes and all other amounts payable by
38
the Borrower under the Credit Documents and by any other Letter of Credit
Obligor under the Letter of Credit Documents shall have been paid in full. If at
any time any payment of any of the Obligations of any other Letter of Credit
Obligor in respect of any Letter of Credit Documents is rescinded or must be
otherwise restored or returned upon the insolvency, bankruptcy or reorganization
of such other Letter of Credit Obligor, the Borrower's obligations under this
section with respect to such payment shall be reinstated at such time as though
such payment had been due but not made at such time.
(e) The Borrower irrevocably waives acceptance hereof, presentment, demand,
protest and any notice not provided for herein, as well as any requirement that
at any time any action be taken by any Person against any other Letter of Credit
Obligor or any other Person, or against any collateral or guaranty of any other
Person.
(f) Until the indefeasible payment in full of all of the Obligations and
the termination of the Commitments of the Lenders hereunder, the Borrower shall
have no rights, by operation of law or otherwise, upon making any payment under
this section to be subrogated to the rights of the payee against any other
Letter of Credit Obligor with respect to such payment or otherwise to be
reimbursed, indemnified or exonerated by any other Letter of Credit Obligor in
respect thereof.
(g) In the event that acceleration of the time for payment of any amount
payable by any other Letter of Credit Obligor under any Letter of Credit
Document is stayed upon insolvency, bankruptcy or reorganization of such other
Letter of Credit Obligor, all such amounts otherwise subject to acceleration
under the terms of any applicable Letter of Credit Document shall nonetheless be
payable by the Borrower under this section forthwith on demand by the
Administrative Agent.
SECTION 4. FEES; COMMITMENTS
4.1. FEES. (a) COMMITMENT FEES. The Borrower agrees to pay to the
Administrative Agent fees ("COMMITMENT FEES") for the account of each
Non-Defaulting Lender for the period from and including the Effective Date to,
but not including, the Maturity Date or, if earlier, the date upon which the
Total Revolving Commitment has been terminated, computed for each day at a rate
per annum equal to the Applicable Commitment Fee for such day on the amount of
such Lender's Revolving Facility Percentage of the Total Revolving Commitment
for such day. Commitment Fees shall be due and payable in arrears on April 1,
July 1, October 1 and January 1 and on the Maturity Date or, if earlier, the
date upon which the Total Revolving Commitment has been terminated.
(B) LETTER OF CREDIT FEES. The Borrower agrees to pay to the Administrative
Agent, for the account of each Non-Defaulting Lender, PRO RATA on the basis of
its Revolving Facility Percentage, a fee in respect of each Letter of Credit
(the "LETTER OF CREDIT FEE"), computed for each day at the rate per annum equal
to the Applicable Eurocurrency Margin then in effect for Revolving Loans on the
Stated Amount of all Letters of Credit outstanding on such day. Accrued Letter
of Credit Fees shall be due and payable quarterly in arrears on each April 1,
July 1, October 1 and January 1 and on the date when the Total Revolving
Commitment expires or is terminated and no Letters of Credit remain outstanding.
The Borrower also agrees to pay to the Administrative Agent, for the account of
each Non-Defaulting Lender which has a Revolving Commitment, PRO RATA on the
basis of its Revolving Facility Percentage, additional Letter of Credit Fees, on
demand, at the rate of 200 basis points per annum, on the Stated Amount of each
Letter of Credit, for any period when a Default under section 10.1(a) or Event
of Default is in existence.
(C) FACING FEES. The Borrower agrees to pay directly to each Letter of
Credit Issuer a fee in respect of each Letter of Credit issued by it (a "FACING
FEE"), computed for each day at the rate of 1/8 of 1% per annum on the Stated
Amount of such Letter of Credit issued by such Letter of Credit Issuer which is
outstanding on such day. Accrued Facing Fees shall be due and payable quarterly
in arrears on April 1, July 1, October 1 and January 1 and on the date on which
the Total Revolving Commitment expires or is terminated and no Letters of Credit
remain outstanding.
(D) ADDITIONAL CHARGES OF LETTER OF CREDIT ISSUER. The Borrower agrees to
pay directly to each Letter of Credit Issuer upon each issuance of, drawing
under, and/or amendment, extension, renewal or transfer of, a Letter of Credit
issued by it such amount as shall at the time of such issuance, drawing,
amendment, extension, renewal or transfer be the administrative or processing
charge which such Letter of Credit Issuer is customarily
39
charging for issuances of, drawings under or amendments, extensions, renewals or
transfers of, letters of credit issued by it.
(E) OTHER FEES. The Borrower shall pay to the Administrative Agent and/or
the Lead Arranger, on the Effective Date and thereafter, for its or their own
account and/or for distribution to the Lenders, such fees as have heretofore
been agreed by the Borrower in a letter among the Borrower, the Administrative
Agent and the Lead Arranger.
(F) COMPUTATIONS OF FEES. All computations of Fees shall be made in
accordance with section 12.7(b).
4.2. VOLUNTARY TERMINATION/REDUCTION OF COMMITMENTS. Upon at least three
Business Days' prior written notice (or telephonic notice confirmed in writing)
to the Administrative Agent at its Notice Office (which notice the
Administrative Agent shall promptly transmit to each of the Lenders), the
Borrower shall have the right to:
(a) terminate the Total Revolving Commitment, PROVIDED that (i) all
outstanding Loans are contemporaneously prepaid in accordance with section 5.1,
and (ii) either (A) no Letters of Credit remain outstanding, or (B) the Borrower
shall contemporaneously either (x) cause all outstanding Letters of Credit to be
surrendered for cancellation (any such Letters of Credit to be replaced by
letters of credit issued by other financial institutions acceptable to each
Letter of Credit Issuer and the Required Lenders), or (y) the Borrower shall pay
to the Collateral Agent an amount in cash and/or Cash Equivalents equal to 100%
of the Letter of Credit Outstandings and the Collateral Agent shall hold such
payment as security for the reimbursement obligations of the Borrower and the
other Letter of Credit Obligors in respect of Letters of Credit pursuant to a
cash collateral agreement to be entered into in form and substance reasonably
satisfactory to the Collateral Agent, each Letter of Credit Issuer and the
Borrower (which shall permit certain investments in Cash Equivalents
satisfactory to the Collateral Agent, each Letter of Credit Issuer and the
Borrower until the proceeds are applied to the secured obligations);
(b) partially and permanently reduce the Total Revolving Commitment,
PROVIDED that:
(i) any such reduction shall apply to proportionately and permanently
reduce the Revolving Commitment of each of the Lenders;
(ii) any partial reduction of the Total Revolving Commitment pursuant
to this section 4.2(b) shall be in the amount of at least $5,000,000 (or,
if greater, in integral multiples of $1,000,000);
(iii) the Total Revolving Commitment as so reduced shall be at least
$25,000,000; and
(iv) after giving effect to any such partial reduction of the Total
Revolving Commitment, (x) the Total Revolving Commitment then in effect
shall exceed the aggregate of the Swing Line Commitment then in effect by
at least $25,000,000, and (y) the resulting Total Revolving Commitment
shall exceed the outstanding Swing Line Loans, if any, by at least
$25,000,000;
(c) partially and permanently reduce the Swing Line Commitment, PROVIDED
that any partial reduction of the Unutilized Swing Line Commitment pursuant to
this section 4.2(c) shall be in the amount of at least $1,000,000 (or, if
greater, in integral multiples of $1,000,000).
4.3. MANDATORY ADJUSTMENTS OF COMMITMENTS, ETC. (a) The Total Revolving
Commitment (and the Revolving Commitment of each Lender) shall terminate on the
earlier of (x) the Maturity Date and (y) the date on which a Change of Control
occurs.
(b) The Swing Line Commitment shall terminate on the earlier of (x) the
Maturity Date and (y) the date on which a Change of Control occurs.
40
(c) The Total Revolving Commitment shall be permanently reduced, without
premium or penalty, at the time that any mandatory prepayment of Revolving Loans
would be made pursuant to section 5.2(f), (g), (h) or (i) as if Revolving Loans
were then outstanding in the full amount of the Total Revolving Commitment, in
an amount equal to the required prepayment of principal of Revolving Loans which
would be required to be made in such circumstance; PROVIDED that no such
reduction in the Total Revolving Commitment shall be required as a result of any
required prepayment of Revolving Loans which would be attributable to the
receipt of Net Cash Proceeds representing proceeds of business interruption
insurance or insurance on inventory pursuant to section 5.2(h). Any such
required reduction shall apply to proportionately and permanently reduce the
Revolving Commitment of each of the Lenders. The Borrower will provide at least
three Business Days' prior written notice (or telephonic notice confirmed in
writing) to the Administrative Agent at its Notice Office (which notice the
Administrative Agent shall promptly transmit to each of the Lenders), of any
reduction of the Total Revolving Commitment pursuant to this section 4.3(c),
specifying the date and amount of the reduction.
SECTION 5. PAYMENTS
5.1. VOLUNTARY PREPAYMENTS. The Borrower shall have the right to prepay any
of its Loans, in whole or in part, without premium or penalty, from time to
time, but only on the following terms and conditions:
(A) NOTICES: the Borrower shall give the Administrative Agent at the Notice
Office written or telephonic notice (in the case of telephonic notice, promptly
confirmed in writing if so requested by the Administrative Agent) of its intent
to prepay the Loans, the amount of such prepayment and (in the case of
Eurocurrency Loans or Money Market Rate Loans) the specific Borrowing(s)
pursuant to which made, which notice shall be received by the Administrative
Agent by
(i) 11:00 A.M. (local time at the Notice Office) three Business Days
prior to the date of such prepayment, in the case of any prepayment of
Eurocurrency Loans or Money Market Rate Loans, or
(ii) 11:00 A.M. (local time at the Notice Office) on the date of such
prepayment, in the case of any prepayment of Prime Rate Loans, and which
notice shall promptly be transmitted by the Administrative Agent to each of
the affected Lenders;
(B) PARTIAL PREPAYMENTS OF REVOLVING BORROWING: in the case of prepayment
of a Borrowing under the Revolving Facility, each partial prepayment of such
Borrowing shall be in an aggregate principal of at least $2,500,000 or an
integral multiple of $500,000 in excess thereof, in the case where such
Borrowing consists of Prime Rate Loans, and at least $5,000,000 (or the
substantial equivalent thereof in Alternative Currency) or an integral multiple
of $1,000,000 (or the substantial equivalent thereof in Alternative Currency) in
excess thereof, in the case where such Borrowing consists of Eurocurrency Loans;
(C) PARTIAL PREPAYMENT OF SWING LINE BORROWING: in the case of prepayment
of a Borrowing under the Swing Line Facility, each partial prepayment of such
Borrowing shall be in an aggregate principal of at least $100,000 or an integral
multiple of $50,000 in excess thereof;
(D) MINIMUM BORROWING AMOUNT AFTER PARTIAL PREPAYMENT: no partial
prepayment of any Loans made pursuant to a Borrowing shall reduce the aggregate
principal amount of such Loans outstanding pursuant to such Borrowing to an
amount less than the Minimum Borrowing Amount applicable thereto;
(E) PREPAYMENTS TO BE APPLIED PRO RATA: each prepayment in respect of any
Loans made pursuant to a Borrowing shall be applied PRO RATA among such Loans;
and
(F) BREAKAGE COMPENSATION: each prepayment of Eurocurrency Loans or Money
Market Rate Loans pursuant to this section 5.1 on any date other than the last
day of the Interest Period applicable thereto, in the case of Eurocurrency
Loans, or the maturity date thereof, in the case of Money Market Rate Loans,
shall be accompanied by any amounts payable in respect thereof under section
2.10.
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5.2. SCHEDULED REPAYMENTS AND MANDATORY PREPAYMENTS. The Loans shall be
subject to mandatory repayment or prepayment in accordance with the following
provisions:
(A) SCHEDULED REPAYMENTS OF LOANS. The Borrower shall repay the entire
principal amount outstanding of any Revolving Loans on the Maturity Date.
(B) MANDATORY PREPAYMENT---IF OUTSTANDING REVOLVING LOANS, SWING LINE LOANS
AND LETTER OF CREDIT OUTSTANDINGS EXCEED TOTAL REVOLVING COMMITMENT. If on any
date (after giving effect to any other payments on such date) the sum of (i) the
aggregate outstanding principal amount of Revolving Loans plus (ii) the
aggregate outstanding principal amount of Swing Line Loans plus (iii) the
aggregate amount of Letter of Credit Outstandings, exceeds the Total Revolving
Commitment as then in effect, then the Borrower shall prepay on such date that
principal amount of Swing Line Loans and, after Swing Line Loans have been paid
in full, Revolving Loans, and after Revolving Loans have been paid in full,
Unpaid Drawings, in an aggregate amount at least equal to such excess and
conforming in the case of partial prepayments of Loans to the requirements as to
the amounts of partial prepayments which are contained in section 5.1. If, after
giving effect to the prepayment of Swing Line Loans, Revolving Loans and Unpaid
Drawings, the aggregate amount of Letter of Credit Outstandings exceeds the
Total Revolving Commitment as then in effect, then the Borrower shall pay to the
Collateral Agent an amount in cash and/or Cash Equivalents equal to such excess
and the Collateral Agent shall hold such payment as security for the
reimbursement obligations of the Borrower and other Letter of Credit Obligors in
respect of Letters of Credit pursuant to a cash collateral agreement or other
appropriate documentation to be entered into in form and substance reasonably
satisfactory to the Collateral Agent, each Letter of Credit Issuer and the
Borrower (which shall permit certain investments in Cash Equivalents
satisfactory to the Collateral Agent, each Letter of Credit Issuer and the
Borrower until the proceeds are applied to the secured obligations).
(C) MANDATORY PREPAYMENT---IF SWING LINE LOANS EXCEED UNUTILIZED TOTAL
REVOLVING COMMITMENT. If on any date (after giving effect to any other payments
on such date) the aggregate outstanding principal amount of Swing Line Loans
exceeds the Unutilized Total Revolving Commitment as then in effect, the
Borrower shall prepay on such date Swing Line Loans in an aggregate principal
amount at least equal to such excess and conforming in the case of partial
prepayments of Swing Line Loans to the requirements as to the amounts of partial
prepayments which are contained in section 5.1.
(D) MANDATORY PREPAYMENT---IF SWING LINE LOANS EXCEED SWING LINE
COMMITMENT. If on any date (after giving effect to any other payments on such
date) the aggregate outstanding principal amount of Swing Line Loans exceeds the
Swing Line Commitment as then in effect, the Borrower shall prepay on such date
Swing Line Loans in an aggregate principal amount at least equal to such excess
and conforming in the case of partial prepayments of Loans to the requirements
as to the amounts of partial prepayments which are contained in section 5.1.
(E) MANDATORY PREPAYMENT---IF LOANS DENOMINATED IN ALTERNATIVE CURRENCY
EXCEED ALTERNATIVE CURRENCY SUBLIMIT. If on any date (after giving effect to any
other payments on such date) the aggregate outstanding principal amount of
Revolving Loans denominated in Alternative Currency exceeds the Alternative
Currency Sublimit, the Borrowers shall prepay on such date Revolving Loans
denominated in Alternative Currency in an aggregate principal amount at least
equal to such excess and conforming in the case of partial prepayments of
Revolving Loans to the requirements as to the amounts of partial prepayments
which are contained in section 5.1.
(F) MANDATORY PREPAYMENT---CERTAIN PROCEEDS OF ASSET SALES. If during any
fiscal year of the Borrower, the Borrower and its Subsidiaries have received
cumulative Cash Proceeds during such fiscal year from one or more Asset Sales of
at least $20,000,000, not later than the fifth Business Day following the date
of receipt of any Cash Proceeds in excess of such amount, an amount, conforming
to the requirements as to the amount of partial prepayments contained in section
5.1, at least equal to 100% of the Net Cash Proceeds then received in excess of
such amount from any Asset Sale, shall be applied as a mandatory prepayment of
principal of FIRST, Swing Line Loans, SECOND, after all Swing Line Loans have
been paid in full, Unpaid Drawings, and THIRD, after all Unpaid Drawings have
been paid in full, Revolving Loans; PROVIDED, that if (A) no Default under
section 10.1(a) or Event of Default shall have occurred and be continuing, (B)
the Borrower and its Subsidiaries have scheduled Consolidated Capital
Expenditures during the following 359 days, and (C) the Borrower notifies the
Administrative
42
Agent of the amount and nature thereof and of its intention to reinvest all or a
portion of such Net Cash Proceeds in such Consolidated Capital Expenditures
during such 359 day period, THEN no such prepayment shall be required to the
extent of the amount of such Net Cash Proceeds as to which the Borrower so
indicates such reinvestment will take place. If at the end of any such 359 day
period any portion of such Net Cash Proceeds has not been so reinvested, the
Borrower will immediately make a prepayment of the principal of FIRST, Swing
Line Loans, SECOND, after all Swing Line Loans have been paid in full, Unpaid
Drawings, and THIRD, after all Unpaid Drawings have been paid in full, Revolving
Loans. Notwithstanding the foregoing, the Borrower shall not in any event permit
to exist Excess Proceeds (as defined in the Public Notes Indenture), unless at
such time the Borrower is permitted to redeem Public Notes under section 9.10
hereof and the Borrower does in fact make an Asset Sale Offer (as defined in the
Public Notes Indenture) to redeem Public Notes as contemplated by section 4.10
of the Public Notes Indenture in the amount of any such Excess Proceeds.
(G) MANDATORY PREPAYMENT---CERTAIN PROCEEDS OF DEBT SECURITIES. Not later
than the Business Day following the date of the receipt by the Borrower or any
Subsidiary of the cash proceeds (net of underwriting discounts and commissions,
placement agent fees and other customary fees and costs associated therewith) in
excess of $25,000,000 in the aggregate during the term of this Agreement from
any sale or issuance of debt securities by the Borrower or any Subsidiary after
the Closing Date in an underwritten public offering, Rule 144A offering, or
private placement with one or more institutional investors, the Borrower will
prepay the principal of FIRST, Swing Line Loans, SECOND, after all Swing Line
Loans have been paid in full, Unpaid Drawings, and THIRD, after all Unpaid
Drawings have been paid in full, Revolving Loans, in an amount at least equal to
the lesser of (x) 100% of such net proceeds, and (y) an amount equal to the then
aggregate outstanding principal amount of the outstanding Loans, if any.
(H) MANDATORY PREPAYMENT---CERTAIN PROCEEDS OF AN EVENT OF LOSS. If during
any fiscal year of the Borrower, the Borrower and its Subsidiaries have received
cumulative Net Cash Proceeds during such fiscal year from one or more Events of
Loss of at least $20,000,000, not later than the fifth Business Day following
the date of receipt of any Net Cash Proceeds in excess of such amount, an
amount, conforming to the requirements as to the amount of partial prepayments
contained in section 5.1, at least equal to 100% of the Net Cash Proceeds then
received in excess of such amount from any Event of Loss, shall be applied as a
mandatory prepayment of principal of FIRST, Swing Line Loans, SECOND, after all
Swing Line Loans have been paid in full, Unpaid Drawings, and THIRD, after all
Unpaid Drawings have been paid in full, Revolving Loans; PROVIDED, that if (A)
no Default under section 10.1(a) or Event of Default shall have occurred and be
continuing, and (B) the Borrower notifies the Administrative Agent of the amount
and nature thereof and of its intention to reinvest all or a portion of such Net
Cash Proceeds in replacement assets during the following 359 days, THEN no such
prepayment shall be required to the extent of the amount of such Net Cash
Proceeds as to which the Borrower so indicates such reinvestment will take
place. If at the end of any such 359 day period any portion of such Net Cash
Proceeds has not been so reinvested, the Borrower will immediately make a
prepayment of the principal of FIRST, Swing Line Loans, SECOND, after all Swing
Line Loans have been paid in full, Unpaid Drawings, and THIRD, after all Unpaid
Drawings have been paid in full, Revolving Loans.
(I) MANDATORY PREPAYMENT---CHANGE OF CONTROL. On the date of which a Change
of Control occurs, notwithstanding anything to the contrary contained in this
Agreement, no further Borrowings shall be made and the then outstanding
principal amount of all Loans, if any, and other Obligations, shall become due
and payable and shall be prepaid in full, together with accrued interest and
Fees and the Borrower shall contemporaneously either (i) cause all outstanding
Letters of Credit to be surrendered for cancellation (any such Letters of Credit
to be replaced by letters of credit issued by other financial institutions
acceptable to the Required Lenders), or (ii) the Borrower shall pay to the
Collateral Agent an amount in cash and/or Cash Equivalents equal to 100% of the
Letter of Credit Outstandings and the Administrative Agent shall hold such
payment as security for the reimbursement obligations of the Borrower and the
other Letter of Credit Obligors in respect of Letters of Credit pursuant to a
cash collateral agreement to be entered into in form and substance reasonably
satisfactory to the Collateral Agent, each Letter of Credit Issuer and the
Borrower (which shall permit certain investments in Cash Equivalents
satisfactory to the Collateral Agent, each Letter of Credit Issuer and the
Borrower until the proceeds are applied to the secured obligations).
(J) PARTICULAR LOANS TO BE PREPAID. With respect to each repayment or
prepayment of Loans required by this section 5.2, the Borrower shall designate
the Types of Loans which are to be repaid or prepaid and
43
the specific Borrowing(s) pursuant to which such repayment or prepayment is to
be made, PROVIDED that (i) the Borrower shall first so designate all Loans that
are Prime Rate Loans and Eurocurrency Loans with Interest Periods ending on the
date of repayment or prepayment prior to designating any other Eurocurrency
Loans for repayment or prepayment, (ii) if the outstanding principal amount of
Eurocurrency Loans made pursuant to a Borrowing is reduced below the applicable
Minimum Borrowing Amount as a result of any such repayment or prepayment, then
all the Loans outstanding pursuant to such Borrowing shall be Converted into
Prime Rate Loans, and (iii) each repayment and prepayment of any Loans made
pursuant to a Borrowing shall be applied PRO RATA among such Loans. In the
absence of a designation by the Borrower as described in the preceding sentence,
the Administrative Agent shall, subject to the above, make such designation in
its sole discretion with a view, but no obligation, to minimize breakage costs
owing under section 2.10. Any repayment or prepayment of Eurocurrency Loans or
Money Market Loans pursuant to this section 5.2 shall in all events be
accompanied by such compensation as is required by section 2.10.
5.3. METHOD AND PLACE OF PAYMENT. (a) Except as otherwise specifically
provided herein, all payments under this Agreement shall be made to the
Administrative Agent for the ratable (based on its PRO RATA share) account of
the Lenders entitled thereto, not later than 12:00 noon (local time at the
Payment Office) on the date when due and shall be made at the Payment Office in
immediately available funds and in lawful money of the United States of America
(in the case of Loans denominated in Dollars), or in Alternative Currency (in
the case of Loans denominated in Alternative Currency), at the Payment Office,
it being understood that written notice by the Borrower to the Administrative
Agent to make a payment from the funds in the Borrower's account at the Payment
Office shall constitute the making of such payment to the extent of such funds
held in such account. Any payments under this Agreement which are made later
than 12:00 noon (local time at the Payment Office) shall be deemed to have been
made on the next succeeding Business Day. Whenever any payment to be made
hereunder shall be stated to be due on a day which is not a Business Day, the
due date thereof shall be extended to the next succeeding Business Day and, with
respect to payments of principal, interest shall be payable during such
extension at the applicable rate in effect immediately prior to such extension.
(b) If at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, Unpaid Drawings,
interest and Fees then due hereunder and an Event of Default is not then in
existence, such funds shall be applied (i) FIRST, towards payment of interest
and Fees then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of interest and Fees then due to such parties, and
(ii) SECOND, towards payment of principal and Unpaid Drawings then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of principal and Unpaid Drawings then due to such parties.
5.4. NET PAYMENTS. (a) All payments made by the Borrower hereunder, under
any Note or any other Credit Document, will be made without setoff, counterclaim
or other defense. Except as provided for in section 5.4(b), all such payments
will be made free and clear of, and without deduction or withholding for, any
present or future taxes, levies, imposts, duties, fees, assessments or other
charges of whatever nature now or hereafter imposed by any jurisdiction or by
any political subdivision or taxing authority thereof or therein with respect to
such payments (but excluding, except as provided in the second succeeding
sentence, any tax, imposed on or measured by the net income or net profits of a
Lender pursuant to the laws of the jurisdiction under which such Lender is
organized or the jurisdiction in which the principal office or Applicable
Lending Office of such Lender is located or any subdivision thereof or therein)
and all interest, penalties or similar liabilities with respect to such non
excluded taxes, levies imposts, duties, fees, assessments or other charges (all
such nonexcluded taxes levies, imposts, duties, fees assessments or other
charges being referred to collectively as "TAXES"). If any Taxes are so levied
or imposed, the Borrower agrees to pay the full amount of such Taxes and such
additional amounts as may be necessary so that every payment by them of all
amounts due hereunder, under any Note or under any other Credit Document, after
withholding or deduction for or on account of any Taxes will not be less than
the amount provided for herein or in such Note or in such other Credit Document.
If any amounts are payable in respect of Taxes pursuant to the preceding
sentence, the Borrower agrees to reimburse each Lender, upon the written request
of such Lender for taxes imposed on or measured by the net income or profits of
such Lender pursuant to the laws of the jurisdiction in which such Lender is
organized or in which the principal office or Applicable Lending Office of such
Lender is located or under the laws of any political subdivision or taxing
authority of any such jurisdiction in which the principal office or Applicable
Lending Office of such Lender is located and for any withholding of income or
similar taxes imposed by the United States of America as such Lender shall
determine are payable by, or withheld from, such Lender in respect of such
amounts so paid to or on behalf of such Lender pursuant to the preceding
44
sentence and in respect of any amounts paid to or on behalf of such Lender
pursuant to this sentence, which request shall be accompanied by a statement
from such Lender setting forth, in reasonable detail, the computations used in
determining such amounts. The Borrower will furnish to the Administrative Agent
within 45 days after the date the payment of any Taxes, or any withholding or
deduction on account thereof, is due pursuant to applicable law certified copies
of tax receipts, or other evidence satisfactory to the relevant Lender,
evidencing such payment by the Borrower. The Borrower will indemnify and hold
harmless the Administrative Agent and each Lender, and reimburse the
Administrative Agent or such Lender upon its written request, for the amount of
any Taxes so levied or imposed and paid or withheld by such Lender.
(b) Each Lender that is a Foreign Lender agrees to provide to the Borrower
and the Administrative Agent on or prior to the Effective Date, or in the cases
of a Lender that is an assignee or transferee of an interest under this
Agreement pursuant to section 12.4 (unless the respective Lender was already a
Lender hereunder immediately prior to such assignment or transfer and such
Lender is in compliance with the provisions of this section 5.4(b)), on the date
of such assignment or transfer to such Lender, (i) two accurate and complete
original signed copies of Internal Revenue Service Form W-8BEN or W-8ECI (or
successor forms) certifying to such Lender's entitlement to a complete exemption
from United States withholding tax with respect to payments to be made under
this Agreement, any Note or any other Credit Document, or (ii) if the Lender is
not a "bank" within the meaning of section 881(c)(3)(A) of the Code and cannot
deliver either Internal Revenue Service Form W-8BEN or W-8ECI pursuant to clause
(i) above, (x) a certificate substantially in the form of Exhibit H (any such
certificate, a "SECTION 5.4(B)(II) CERTIFICATE") and (y) two accurate and
complete original signed copies of Internal Revenue Service Form W-8 (or
successor form) certifying to such Lender's entitlement to a complete exemption
from United States withholding tax with respect to payments of interest to be
made under this Agreement, any Note or any other Credit Document. In addition,
each Lender agrees that from time to time after the Effective Date, when a lapse
in time or change in circumstances renders the previous certification obsolete
or inaccurate in any material respect, it will deliver to the Borrower and the
Administrative Agent two new accurate and complete original signed copies of
Internal Revenue Service Form W-8BEN or W-8ECI, and a Section 5.4(b)(ii)
Certificate, as the case may be, and such other forms as may be required in
order to confirm or establish the entitlement of such Lender to a continued
exemption from or reduction in United States withholding tax with respect to
payments under this Agreement, any Note or any other Credit Document, or it
shall immediately notify the Borrower and the Administrative Agent of its
inability to deliver any such Form or Certificate, in which case such Lender
shall not be required to deliver any such Form or Certificate pursuant to this
section 5.4(b). Notwithstanding anything to the contrary contained in section
5.4(a), but subject to section 12.4(g) and the immediately succeeding sentence,
(x) the Borrower shall be entitled, to the extent it is required to do so by
law, to deduct or withhold income or other similar taxes imposed by the United
States (or any political subdivision or taxing authority thereof or therein)
from interest, fees or other amounts payable hereunder for the account of any
Lender which is a Foreign Lender and which has not provided to the Borrower such
forms that establish a complete exemption from such deduction or withholding and
(y) the Borrower shall not be obligated pursuant to section 5.4(a) hereof to
gross-up payments to be made to a Lender in respect of income or similar taxes
imposed by the United States or any additional amounts with respect thereto (I)
if such Lender has not provided to the Borrower the Internal Revenue Service
forms required to be provided to the Borrower pursuant to this section 5.4(b) or
(II) in the case of a payment other than interest, to a Lender described in
clause (ii) above, to the extent that such forms do not establish a complete
exemption from withholding of such taxes. Notwithstanding anything to the
contrary contained in the preceding sentence or elsewhere in this section 5.4
and except as specifically provided for in section 12.4(g), the Borrower agrees
to pay additional amounts and indemnify each Lender in the manner set forth in
section 5.4(a) (without regard to the identity of the jurisdiction requiring the
deduction or withholding) in respect of any Taxes deducted or withheld by it as
described in the previous sentence as a result of any changes after the
Effective Date in any applicable law, treaty, governmental rule, regulation,
guideline or order, or in the interpretation thereof, relating to the deducting
or withholding of income or similar Taxes.
(c) If any Lender, in its sole opinion, determines that it has finally and
irrevocably received or been granted a refund in respect of any Taxes paid as to
which indemnification has been paid by the Borrower pursuant to this section, it
shall promptly remit such refund (including any interest received in respect
thereof), net of all out-of-pocket costs and expenses; PROVIDED, that the
Borrower agrees to promptly return any such refund (plus interest) to such
Lender in the event such Lender is required to repay such refund to the relevant
taxing authority. Any such Lender shall provide the Borrower with a copy of any
notice of assessment from the relevant taxing authority
45
(redacting any unrelated confidential information contained therein) requiring
repayment of such refund. Nothing contained herein shall impose an obligation on
any Lender to apply for any such refund.
(d) Reference is hereby made to the provisions of section 2.9(d) for
certain limitations upon the rights of a Lender under this section.
SECTION 6. CONDITIONS PRECEDENT
6.1. CONDITIONS PRECEDENT AT CLOSING DATE. The obligation of the Lenders to
make Loans, and of any Letter of Credit Issuer to issue Letters of Credit, is
subject to the satisfaction of each of the following conditions on or prior to
the Closing Date:
(A) EFFECTIVENESS; NOTES. On or prior to the Closing Date, (i) the
Effective Date shall have occurred and (ii) if requested by any Lender, there
shall have been delivered to the Administrative Agent for the account of each
Lender each appropriate Note executed by the Borrower, in each case, in the
amount, maturity and as otherwise provided herein.
(B) FEES, ETC. The Borrower shall have paid or caused to be paid all fees
required to be paid by it on or prior to such date pursuant to section 4.1
hereof and all reasonable fees and expenses of the Lead Arranger and the
Administrative Agent and of special counsel to the Administrative Agent which
have been invoiced on or prior to such date in connection with the preparation,
execution and delivery of this Agreement and the other Credit Documents and the
consummation of the transactions contemplated hereby and thereby.
(C) OTHER CREDIT DOCUMENTS. The Credit Parties named therein shall have
duly executed and delivered and there shall be in full force and effect, and
original counterparts shall have been delivered to the Administrative Agent, in
sufficient quantities for the Lenders, of: (i) the Subsidiary Guaranty; (ii) the
Security Agreement; (iii) the Collateral Assignment of Patents; (iv) the
Collateral Assignment of Trademarks; and (v) the Pledge Agreement.
(D) CHARTER AND BY-LAWS, GOOD STANDING. The Administrative Agent shall have
received, in sufficient quantity for the Administrative Agent and the Lenders,
(i) a copy of the certificate or articles of incorporation of the Borrower and
each other Credit Party, including any amendments or restatements thereof,
certified as of a recent date by the Secretary of State or other governmental
official of the jurisdiction of its formation, (ii) a copy of the By-Laws or
equivalent governing documents of the Borrower and each other Credit Party,
certified as true, correct and in full force and effect by the Secretary or an
Assistant Secretary of such Credit Party; and (iii) a copy of a certificate of
good standing for the Borrower and each other Credit Party, issued as of a
recent date by the Secretary of State or other governmental official of the
jurisdiction of its formation.
(E) CORPORATE RESOLUTIONS AND APPROVALS. The Administrative Agent shall
have received, in sufficient quantity for the Administrative Agent and the
Lenders, certified copies of the resolutions of the Board of Directors (or the
equivalent) of the Borrower and each other Credit Party approving this Agreement
and all Other Credit Documents and of all documents evidencing other necessary
corporate action and governmental approvals, if any, with respect to the
execution, delivery and performance by the Borrower and each other Credit Party
of this Agreement.
(F) INCUMBENCY CERTIFICATES. The Administrative Agent shall have received,
in sufficient quantity for the Administrative Agent and the Lenders, a
certificate of the Secretary or an Assistant Secretary of the Borrower and each
other Credit Party, certifying the names and true signatures of the officers of
the Borrower or such other Credit Party, as the case may be, authorized to sign
the Credit Documents to which the Borrower or such other Credit Party is a party
and the other documents which may be executed and delivered in connection
herewith.
(G) OPINION OF COUNSEL. On the Closing Date, the Administrative Agent shall
have received an opinion, addressed to the Administrative Agent and each of the
Lenders and dated the Closing Date, from Squire, Xxxxxxx & Xxxxxxx LLP, special
counsel to the Borrower covering such matters incident to the transactions
46
contemplated hereby as the Administrative Agent may reasonably request, such
opinion to be in form and substance satisfactory to the Administrative Agent.
(H) NO MATERIAL ADVERSE CHANGE IN LOAN SYNDICATION OR CAPITAL MARKETS.
There shall not have occurred a material disruption or material adverse change
in financial, banking, loan syndication or capital market conditions generally
syndicated leveraged loans which, in the sole judgment of the Lead Arranger,
could be expected to materially adversely affect the syndication of portions or
all of the Facilities to additional Lenders.
(I) NO MATERIAL ADVERSE EFFECT. Since December 31, 2004, there shall have
been no change in the condition, business, affairs or prospects of the Borrower
and its Subsidiaries taken as a whole, or their properties and assets considered
as an entirety, EXCEPT FOR changes none of which, individually or in the
aggregate, has had or could reasonably be expected to have, a Material Adverse
Effect.
(J) BORROWER'S CLOSING CERTIFICATE. On the Closing Date the Administrative
Agent shall have received a certificate, dated the Closing Date, of an
Authorized Officer of the Borrower to the effect that, at and as of the Closing
Date and both before and after giving effect to the initial Borrowings hereunder
and the application of the proceeds thereof, (i) the Borrower is in compliance
with all of the covenants contained in sections 8 and 9 of this Agreement, (ii)
no Default or Event of Default has occurred or is continuing, and (iii) all
representations and warranties of the Credit Parties contained herein or in the
other Credit Documents are true and correct in all material respects with the
same effect as though such representations and warranties had been made on and
as of the Closing Date, except that, as to any such representations and
warranties which expressly relate to an earlier specified date, such
representations and warranties are only represented as having been true and
correct in all material respects as of the date when made.
(K) PROCEEDINGS AND DOCUMENTS. All corporate and other proceedings and all
documents incidental to the transactions contemplated hereby shall be
satisfactory in substance and form to the Administrative Agent and the Lenders
and the Administrative Agent and its special counsel and the Lenders shall have
received all such counterpart originals or certified or other copies of such
documents as the Administrative Agent or its special counsel or any Lender may
reasonably request.
(L) ABSENCE OF LITIGATION. There shall not be any action, suits or
proceedings pending or threatened with respect to the Borrower or its
Subsidiaries (i) that have, or could reasonably be expected to have, a Material
Adverse Effect, or (ii) that question the validity or enforceability of any of
the Credit Documents, or of any action to be taken by the Borrower or any of the
Credit Parties pursuant to any of the Credit Documents.
(M) NO OTHER MATERIAL INDEBTEDNESS. The Borrower shall have repaid the
amounts outstanding under the Existing Credit Facility, shall have no other
material Indebtedness (or commitments for additional Indebtedness) outstanding
(excluding the existing Public Notes and the Existing Indebtedness Agreements).
(N) RECORDATION OF SECURITY DOCUMENTS, DELIVERY OF COLLATERAL, TAXES, ETC.
The Security Documents (or proper notices or financing statements in respect
thereof) shall have been duly recorded, published and filed in such manner and
in such places as is required by law to establish, perfect, preserve and protect
the rights and security interests of the parties thereto and their respective
successors and assigns, all collateral items required to be physically delivered
to the Collateral Agent thereunder shall have been so delivered, accompanied by
any appropriate instruments of transfer, and all taxes, fees and other charges
then due and payable in connection with the execution, delivery, recording,
publishing and filing of such instruments and the issue and delivery of the
Notes shall have been paid in full.
(O) EVIDENCE OF INSURANCE. The Collateral Agent shall have received
certificates of insurance and other evidence, satisfactory to it, of compliance
with the insurance requirements of this Agreement and the Security Documents.
(P) SEARCH REPORTS. The Administrative Agent shall have received completed
requests for information on Form UCC-11, or search reports from one or more
commercial search firms acceptable to the Administrative Agent, listing all of
the effective financing statements filed against the Borrower and its Domestic
47
Subsidiaries in any jurisdiction in which such person maintains or maintained an
office or in which any assets of such person is located, together with copies of
such financing statements.
(Q) PUBLIC NOTES INDENTURE. The Administrative Agent shall have received a
certificate, dated the Closing Date, of a responsible financial officer of the
Borrower in form and substance satisfactory to the Administrative Agent to the
effect that (i) no default or event of default exists under the Public Notes
Indenture both before and after giving effect to the initial Loans hereunder,
(ii) all of the Obligations constitute "Designated Senior Debt" and "Permitted
Debt" (each as defined in the Public Notes Indenture), and (iii) such other
matters with respect to the Public Notes Indenture and the other Public Notes
Documents as the Administrative Agent shall request, together with the
calculations or other evidence supporting the same.
6.2. CONDITIONS PRECEDENT TO ALL CREDIT EVENTS. The obligations of the
Lenders to make each Loan and/or of a Letter of Credit Issuer to issue each
Letter of Credit is subject, at the time thereof, to the satisfaction of the
following conditions:
(A) NOTICE OF BORROWING, ETC. The Administrative Agent shall have received
a Notice of Borrowing meeting the requirements of section 2.3 with respect to
the incurrence of Loans or a Letter of Credit Request meeting the requirement of
section 3.2 with respect to the issuance of a Letter of Credit.
(B) NO DEFAULT; REPRESENTATIONS AND WARRANTIES. At the time of each Credit
Event and also after giving effect thereto, (i) there shall exist no Default or
Event of Default and (ii) all representations and warranties of the Credit
Parties contained herein or in the other Credit Documents shall be true and
correct in all material respects with the same effect as though such
representations and warranties had been made on and as of the date of such
Credit Event, except to the extent that such representations and warranties
expressly relate to an earlier specified date, in which case such
representations and warranties shall have been true and correct in all material
respects as of the date when made.
The acceptance of the benefits of each Credit Event shall constitute a
representation and warranty by the Borrower to each of the Lenders that all of
the applicable conditions specified in section 6.1 and/or 6.2, as the case may
be, have been satisfied as of the times referred to in sections 6.1 and 6.2. All
of the certificates, legal opinions and other documents and papers referred to
in this section 6, unless otherwise specified, shall be delivered to the
Administrative Agent for the account of each of the Administrative Agent and the
Lenders and, except for the Notes, in sufficient counterparts for the
Administrative Agent and the Lenders, and the Administrative Agent will promptly
distribute to the Lenders their respective Notes and the copies of such other
certificates, legal opinions and documents.
SECTION 7. REPRESENTATIONS AND WARRANTIES
In order to induce the Lenders to enter into this Agreement and to make the
Loans, and/or to issue and/or to participate in the Letters of Credit provided
for herein, the Borrower makes the following representations and warranties to,
and agreements with, the Lenders, all of which shall survive the execution and
delivery of this Agreement and each Credit Event:
7.1. CORPORATE STATUS, ETC. Each of the Borrower and its Subsidiaries (i)
is a duly organized or formed and validly existing corporation, partnership or
limited liability company, as the case may be, in good standing under the laws
of the jurisdiction of its formation and has the corporate, partnership or
limited liability company power and authority, as applicable, to own its
property and assets and to transact the business in which it is engaged and
presently proposes to engage, and (ii) has duly qualified and is authorized to
do business in all jurisdictions where it is required to be so qualified except
where the failure to be so qualified would not have a Material Adverse Effect.
7.2. SUBSIDIARIES. Annex II hereto lists, as of the date hereof, each
Subsidiary of the Borrower (and the direct and indirect ownership interest of
the Borrower therein).
48
7.3. CORPORATE POWER AND AUTHORITY, ETC. Each Credit Party has the
corporate or other organizational power and authority to execute, deliver and
carry out the terms and provisions of the Credit Documents to which it is party
and has taken all necessary corporate or other organizational action to
authorize the execution, delivery and performance of the Credit Documents to
which it is party. Each Credit Party has duly executed and delivered each Credit
Document to which it is party and each Credit Document to which it is party
constitutes the legal, valid and binding agreement or obligation of such Credit
Party enforceable in accordance with its terms, except to the extent that the
enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws generally affecting creditors'
rights and by equitable principles (regardless of whether enforcement is sought
in equity or at law).
7.4. NO VIOLATION. Neither the execution, delivery and performance by any
Credit Party of the Credit Documents to which it is party nor compliance with
the terms and provisions thereof (i) will contravene any provision of any law,
statute, rule, regulation, order, writ, injunction or decree of any court or
governmental instrumentality applicable to such Credit Party or its properties
and assets, (ii) will conflict with or result in any breach of, any of the
terms, covenants, conditions or provisions of, or constitute a default under, or
result in the creation or imposition of (or the obligation to create or impose)
any Lien (other than the Liens created pursuant to the Security Documents) upon
any of the property or assets of such Credit Party pursuant to the terms of any
promissory note, bond, debenture, indenture, mortgage, deed of trust, credit or
loan agreement, or any other material agreement or other instrument, to which
such Credit Party is a party or by which it or any of its property or assets are
bound or to which it may be subject, or (iii) will violate any provision of the
certificate or articles of incorporation, code of regulations or by-laws, or
other charter documents of such Credit Party.
7.5. GOVERNMENTAL APPROVALS. No order, consent, approval, license,
authorization, or validation of, or filing, recording or registration with, or
exemption by, any foreign or domestic governmental or public body or authority,
or any subdivision thereof, is required to authorize or is required as a
condition to (i) the execution, delivery and performance by any Credit Party of
any Credit Document to which it is a party, or (ii) the legality, validity,
binding effect or enforceability of any Credit Document to which any Credit
Party is a party, EXCEPT for the filing and recording of financing statements
and other documents necessary in order to perfect the Liens created by the
Security Documents.
7.6. LITIGATION. There are no actions, suits or proceedings pending or, to
the knowledge of the Borrower, threatened with respect to the Borrower or any of
its Subsidiaries (i) that have, or could reasonably be expected to have, a
Material Adverse Effect, or (ii) which question the validity or enforceability
of any of the Credit Documents, or of any action to be taken by the Borrower or
any of the other Credit Parties pursuant to any of the Credit Documents.
7.7. USE OF PROCEEDS; MARGIN REGULATIONS. (a) The use of proceeds of any
Borrowing shall be utilized to support working capital needs, to repurchase
Public Notes (subject to the provisions of section 9.10), to refinance existing
Indebtedness (in the case of Borrowings on the Closing Date) and otherwise be
utilized for lawful purposes not inconsistent with the requirements of this
Agreement.
(B) No part of the proceeds of any Credit Event will be used directly or
indirectly to purchase or carry Margin Stock, or to extend credit to others for
the purpose of purchasing or carrying any Margin Stock, in violation of any of
the provisions of Regulation T, U or X of the Board of Governors of the Federal
Reserve System. The Borrower is not engaged in the business of extending credit
for the purpose of purchasing or carrying any Margin Stock. At no time would
more than 25% of the value of the assets of the Borrower or of the Borrower and
its consolidated Subsidiaries that are subject to any "arrangement" (as such
term is used in section 221.2(g) of such Regulation U) hereunder be represented
by Margin Stock.
7.8. FINANCIAL STATEMENTS, ETC. (a) The audited consolidated balance sheets
of the Borrower as of December 31, 2002, 2003 and 2004 and the audited
consolidated statements of operations and cash flows for the fiscal years ended
December 31, 2002, 2003 and 2004 were prepared in accordance with Regulation S-X
and fairly present the financial position of the Borrower as of each such date
and its results of operations for each such period. The Borrower and its
Subsidiaries did not have, as of the date of the latest Financial Statements
referred to above, and will not have as of the Closing Date after giving effect
to the incurrence of Loans hereunder, any material or significant contingent
liability or liability for taxes, long-term lease or unusual forward or
long-term commitment
49
that is not reflected in the foregoing financial statements or the notes thereto
in accordance with GAAP and which in any such case is material in relation to
the business, operations, properties, assets, condition (financial or otherwise)
or prospects of the Borrower and its Subsidiaries.
(b) The Borrower has received consideration which is the reasonable
equivalent value of the obligations and liabilities that the Borrower has
incurred to the Administrative Agent and the Lenders. The Borrower now has
capital sufficient to carry on its business and transactions and all business
and transactions in which it is about to engage and is now solvent and able to
pay its debts as they mature and the Borrower, as of the Closing Date, owns
property having a value, both at fair valuation and at present fair salable
value, greater than the amount required to pay the Borrower's debts; and the
Borrower is not entering into the Credit Documents with the intent to hinder,
delay or defraud its creditors. For purposes of this section 7.8(b), "DEBT"
means any liability on a claim, and "CLAIM" means (x) right to payment whether
or not such a right is reduced to judgment, liquidated, unliquidated, fixed,
contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured
or unsecured; or (y) right to an equitable remedy for breach of performance if
such breach gives rise to a payment, whether or not such right to an equitable
remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed,
undisputed, secured or unsecured.
(c) The Borrower has delivered or caused to be delivered to the Lenders
prior to the execution and delivery of this Agreement a copy of the Borrower's
Report on Form 10-K as filed (without Exhibits) with the SEC for its fiscal year
ended December 31, 2004, which contains a general description of the business
and affairs of the Borrower and its Subsidiaries.
7.9. NO MATERIAL ADVERSE CHANGE. Since December 31, 2004, there has been no
change in the condition, business, affairs or prospects of the Borrower and its
Subsidiaries taken as a whole, or their properties and assets considered as an
entirety, EXCEPT FOR changes none of which, individually or in the aggregate,
has had or could reasonably be expected to have, a Material Adverse Effect.
7.10. TAX RETURNS AND PAYMENTS. Each of the Borrower and each of its
Subsidiaries has filed all federal income tax returns and all other material tax
returns, domestic and foreign, required to be filed by it and has paid all
material taxes and assessments payable by it which have become due, other than
those not yet delinquent and except for those contested in good faith. The
Borrower and each of its Subsidiaries has established on its books such charges,
accruals and reserves in respect of taxes, assessments, fees and other
governmental charges for all fiscal periods as are required by GAAP. The
Borrower knows of no proposed assessment for additional federal, foreign or
state taxes for any period, or of any basis therefor, which, individually or in
the aggregate, taking into account such charges, accruals and reserves in
respect thereof as the Borrower and its Subsidiaries have made, could reasonably
be expected to have a Material Adverse Effect.
7.11. TITLE TO PROPERTIES, ETC. The Borrower and each of its Subsidiaries
has good and marketable title, in the case of real property, and good title (or
valid Leaseholds, in the case of any leased property), in the case of all other
property, to all of its properties and assets free and clear of Liens other than
Permitted Liens. The interests of the Borrower and each of its Subsidiaries in
the properties reflected in the most recent balance sheet referred to in section
7.8, taken as a whole, were sufficient, in the judgment of the Borrower, as of
the date of such balance sheet for purposes of the ownership and operation of
the businesses conducted by the Borrower and such Subsidiaries.
7.12. LAWFUL OPERATIONS, ETC. Except for known situations or incidents
which are reserved for on the most recent consolidated balance sheet referred to
in section 7.8 or which, if not so reserved, could not reasonably be expected to
have a Material Adverse Effect, the Borrower and each of its Subsidiaries is in
full compliance with all material requirements imposed by law, whether federal
or state, including (without limitation) Environmental Laws and zoning
ordinances.
7.13. ENVIRONMENTAL MATTERS. (a) The Borrower and each of its Subsidiaries
is in compliance with all Environmental Laws governing its business, except to
the extent that any such failure to comply (together with any resulting
penalties, fines or forfeitures) would not reasonably be expected to have a
Material Adverse Effect. All licenses, permits, registrations or approvals
required for the business of the Borrower and each of its Subsidiaries under any
Environmental Law have been secured and the Borrower and each of its
Subsidiaries is in substantial
50
compliance therewith, except for such licenses, permits, registrations or
approvals the failure to secure or to comply therewith is not reasonably likely
to have a Material Adverse Effect. Neither the Borrower nor any of its
Subsidiaries has received written notice, or otherwise knows, that it is in any
respect in noncompliance with, breach of or default under any Environmental
Laws, and no event has occurred and is continuing which, with the passage of
time or the giving of notice or both, would constitute noncompliance, breach of
or default thereunder, except in each such case, such noncompliance, breaches or
defaults as would not reasonably be expected to, in the aggregate, have a
Material Adverse Effect. There are no Environmental Claims pending or, to the
best knowledge of the Borrower, threatened wherein an unfavorable decision,
ruling or finding would reasonably be expected to have a Material Adverse
Effect.
(b) Hazardous Materials have not at any time been (i) generated, used,
treated or stored on, or transported to or from, any Real Property of the
Borrower or any of its Subsidiaries or (ii) released on any such Real Property,
in each case where such occurrence or event is not in compliance with
Environmental Laws and is reasonably likely to have a Material Adverse Effect.
7.14. COMPLIANCE WITH ERISA. Compliance by the Borrower and each of its
Subsidiaries with the provisions hereof and Credit Events contemplated hereby
will not involve any prohibited transaction within the meaning of ERISA or
section 4975 of the Code. The Borrower and each of its Subsidiaries, (i) has
fulfilled all obligations under minimum funding standards of ERISA and the Code
with respect to each Plan that is not a Multiemployer Plan or a Multiple
Employer Plan, (ii) has satisfied all respective contribution obligations in
respect of each Multiemployer Plan and each Multiple Employer Plan, (iii) is in
compliance in all material respects with all other applicable provisions of
ERISA and the Code with respect to each Plan, each Multiemployer Plan and each
Multiple Employer Plan, and (iv) has not incurred any liability under the Title
IV of ERISA to the PBGC with respect to any Plan, any Multiemployer Plan, any
Multiple Employer Plan, or any trust established thereunder. No Plan or trust
created thereunder has been terminated, and there have been no Reportable
Events, with respect to any Plan or trust created thereunder or with respect to
any Multiemployer Plan or Multiple Employer Plan, which termination or
Reportable Event will or could result in the termination of such Plan,
Multiemployer Plan or Multiple Employer Plan or give rise to a material
liability of the Borrower or any ERISA Affiliate in respect thereof. Neither the
Borrower nor any ERISA Affiliate is at the date hereof, or has been at any time
within the two years preceding the date hereof, an employer required to
contribute to any Multiemployer Plan or Multiple Employer Plan, or a
"contributing sponsor" (as such term is defined in section 4001 of ERISA) in any
Multiemployer Plan or Multiple Employer Plan. Neither the Borrower nor any ERISA
Affiliate has any contingent liability with respect to any post-retirement
"welfare benefit plan" (as such term is defined in ERISA) except as has been
disclosed to the Lenders in writing.
7.15. INTELLECTUAL PROPERTY, ETC. The Borrower and each of its Subsidiaries
has obtained or has the right to use all material patents, trademarks, service
marks, trade names, copyrights, licenses and other rights with respect to the
foregoing necessary for the present and planned future conduct of its business,
without any known conflict with the rights of others, EXCEPT for such patents,
trademarks, service marks, trade names, copyrights, licenses and rights, the
loss of which, and such conflicts, which in any such case individually or in the
aggregate would not reasonably be expected to have a Material Adverse Effect.
7.16. INVESTMENT COMPANY ACT, ETC. Neither the Borrower nor any of its
Subsidiaries is subject to regulation with respect to the creation or incurrence
of Indebtedness under the Investment Company Act of 1940, as amended, the ICC
Termination Act of 1995, as amended, the Federal Power Act, as amended, the
Public Utility Holding Company Act of 1935, as amended, or any applicable state
public utility law.
7.17. EXISTING INDEBTEDNESS. Annex III sets forth a true and complete list,
as of the date or dates set forth therein, of all Indebtedness of the Borrower
and each of its Subsidiaries, on a consolidated basis, which (i) has an
outstanding principal amount of at least $1,000,000, or may be incurred pursuant
to existing commitments or lines of credit, or (ii) is secured by any Lien on
any property of the Borrower or any Subsidiary, and which will be outstanding on
the Closing Date after giving effect to any Borrowing hereunder which is
expected to be made on the Closing Date, other than the Indebtedness created
under the Credit Documents (all such Indebtedness, whether or not in a principal
amount meeting such threshold and required to be so listed on Annex III, herein
the "EXISTING INDEBTEDNESS"). The Borrower has provided to the Administrative
Agent prior to the date of execution hereof true
51
and complete copies (or summary descriptions) of all agreements and instruments
governing the Indebtedness listed on Annex III (the "EXISTING INDEBTEDNESS
AGREEMENTS").
7.18. BURDENSOME CONTRACTS; LABOR RELATIONS. Neither the Borrower nor any
of its Subsidiaries (i) is subject to any burdensome contract, agreement,
corporate restriction, judgment, decree or order, (ii) is a party to any labor
dispute affecting any bargaining unit or other group of employees generally,
(iii) is subject to any material strike, slow down, workout or other concerted
interruptions of operations by employees of the Borrower or any Subsidiary,
whether or not relating to any labor contracts, (iv) is subject to any
significant pending or, to the knowledge of the Borrower, threatened, unfair
labor practice complaint, before the National Labor Relations Board, and (v) is
subject to any significant pending or, to the knowledge of the Borrower,
threatened, grievance or significant arbitration proceeding arising out of or
under any collective bargaining agreement, (vi) is subject to any significant
pending or, to the knowledge of the Borrower, threatened, significant strike,
labor dispute, slowdown or stoppage, or (vii) is, to the knowledge of the
Borrower, involved or subject to any union representation organizing or
certification matter with respect to the employees of the Borrower or any of its
Subsidiaries, EXCEPT (with respect to any matter specified in any of the above
clauses), for such matters as, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.
7.19. SECURITY INTERESTS. Until terminated in accordance with the terms
thereof, each of the Security Documents creates, as security for the obligations
purported to be secured thereby, a valid and enforceable perfected security
interest in and Lien on all of the Collateral subject thereto from time to time,
in favor of the Collateral Agent for the benefit of the Secured Creditors
referred to in the Security Documents, superior to and prior to the rights of
all third Persons and subject to no other Liens, EXCEPT that the Collateral
under the Security Documents may be subject to Permitted Liens. No filings or
recordings are required in order to perfect the security interests created under
any Security Document except for filings or recordings required in connection
with any such Security Document which shall have been made, or for which
satisfactory arrangements have been made, upon or prior to the execution and
delivery thereof. All recording, stamp, intangible or other similar taxes
required to be paid by any Person under applicable legal requirements or other
laws applicable to the property encumbered by the Security Documents in
connection with the execution, delivery, recordation, filing, registration,
perfection or enforcement thereof have been paid.
7.20. PUBLIC NOTES INDENTURE. No default or event of default exists, nor
will any such event of default or default exist under the Public Notes Indenture
(or any other Public Notes Document) immediately after the making of any Loan or
other extension of credit hereunder. The Indebtedness created under this
Agreement constitutes and at all times will constitute "Designated Senior Debt"
and "Permitted Debt" (each as defined in the Public Notes Indenture).
7.21. TRUE AND COMPLETE DISCLOSURE. All factual information (taken as a
whole) heretofore or contemporaneously furnished by or on behalf of the Borrower
or any of its Subsidiaries in writing to the Administrative Agent or any Lender
for purposes of or in connection with this Agreement or any transaction
contemplated herein is, and all other such factual information (taken as a
whole) hereafter furnished by or on behalf of such Person in writing to any
Lender will be, true and accurate in all material respects on the date as of
which such information is dated or certified and not incomplete by omitting to
state any material fact necessary to make such information (taken as a whole)
not misleading at such time in light of the circumstances under which such
information was provided, except that any such future information consisting of
financial projections prepared by the Borrower is only represented herein as
being based on good faith estimates and assumptions believed by such Persons to
be reasonable at the time made, it being recognized by the Lenders that such
projections as to future events are not to be viewed as facts and that actual
results during the period or periods covered by any such projections may differ
materially from the projected results.
7.22. ANTI-TERRORISM LAW COMPLIANCE. Neither the Borrower nor any of its
Subsidiaries is subject to or in violation of any law, regulation, or list of
any government agency (including, without limitation, the U.S. Office of Foreign
Asset Control list, Executive Order No. 13224 or the USA Patriot Act) that
prohibits or limits the conduct of business with or the receiving of funds,
goods or services to or for the benefit of certain Persons specified therein or
that prohibits or limits any Lender or Letter of Credit Issuer from making any
advance or extension of credit to the Borrower or from otherwise conducting
business with the Borrower.
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SECTION 8. AFFIRMATIVE COVENANTS
The Borrower hereby covenants and agrees that on the Effective Date and
thereafter so long as this Agreement is in effect and until such time as the
Total Commitment has been terminated, no Notes or Letters of Credit remain
outstanding and the Loans, together with interest, Fees and all other
Obligations incurred hereunder and under the other Credit Documents, have been
paid in full:
8.1. REPORTING REQUIREMENTS. The Borrower will furnish to the
Administrative Agent and each Lender (except with respect to the information to
be provided in paragraph (d) below, which information shall be provided to a
Lender by the Administrative Agent upon request therefor):
(A) ANNUAL FINANCIAL STATEMENTS. As soon as available and in any event
within 90 days after the close of each fiscal year of the Borrower, the
consolidated balance sheets of the Borrower and its consolidated Subsidiaries as
at the end of such fiscal year and the related consolidated statements of
income, of stockholders' equity and of cash flows for such fiscal year, in each
case setting forth comparative figures for the preceding fiscal year, all in
reasonable detail and accompanied by the opinion with respect to such
consolidated financial statements of independent public accountants of
recognized national standing selected by the Borrower, which opinion shall be
unqualified and shall (i) state that such accountants audited such consolidated
financial statements in accordance with generally accepted auditing standards,
that such accountants believe that such audit provides a reasonable basis for
their opinion, and that in their opinion such consolidated financial statements
present fairly, in all material respects, the consolidated financial position of
the Borrower and its consolidated Subsidiaries as at the end of such fiscal year
and the consolidated results of their operations and cash flows for such fiscal
year in conformity with generally accepted accounting principles, or (ii)
contain such statements as are customarily included in unqualified reports of
independent accountants in conformity with the recommendations and requirements
of the American Institute of Certified Public Accountants (or any successor
organization).
(B) QUARTERLY FINANCIAL STATEMENTS. As soon as available and in any event
within 45 days after the close of each of the first three quarterly accounting
periods in each fiscal year of the Borrower, the unaudited consolidated balance
sheets of the Borrower and its consolidated Subsidiaries as at the end of such
quarterly period and the related unaudited consolidated statements of income and
of cash flows for such quarterly period and/or for the fiscal year to date, and
setting forth, in the case of such unaudited consolidated statements of income
and of cash flows, comparative figures for the related periods in the prior
fiscal year, and which shall be certified on behalf of the Borrower by the Chief
Executive Officer, President, Chief Financial Officer, Treasurer or other
Authorized Officer of the Borrower, subject to changes resulting from normal
year-end audit adjustments.
(C) OFFICER'S COMPLIANCE CERTIFICATES. At the time of the delivery of the
financial statements provided for in sections 8.1(a) and (b), a certificate on
behalf of the Borrower of the Chief Executive Officer, President, Chief
Financial Officer, Treasurer or other Authorized Officer of the Borrower to the
effect that, to the best knowledge of the Borrower, no Default or Event of
Default exists or, if any Default or Event of Default does exist, specifying the
nature and extent thereof and the actions the Borrower proposes to take with
respect thereto, which certificate shall set forth the calculations required to
establish compliance with the provisions of sections 9.7 and 9.8 of this
Agreement, and in the event the compliance with any such covenant is being
calculated on a Pro Forma Basis, such certificate shall contain a certification
that the financial items presented on a Pro Forma Basis have been derived in
accordance with the definition of Pro Forma Basis and the relevant assumptions
made in such determination.
(D) BUDGETS AND FORECASTS. Not later than (i) 5 days after approval thereof
by the Board of Directors of the Borrower in the case of the 2006 fiscal year
and (ii) 90 days following commencement thereof in the case of any other fiscal
year of the Borrower and its Subsidiaries, a consolidated budget in reasonable
detail for each of the four fiscal quarters of such fiscal year, as customarily
prepared by management for its internal use, setting forth the forecasted
balance sheet, income statement, operating cash flows and capital expenditures
of the Borrower and its Subsidiaries for the period covered thereby.
(E) NOTICE OF DEFAULT, LITIGATION OR CERTAIN MATTERS INVOLVING MAJOR
CUSTOMERS OR SUPPLIERS. Promptly, and in any event within three Business Days,
in the case of clause (i) below, or 10 days, in the case of clause (ii) or (iii)
below, after the Borrower or any of its Subsidiaries obtains knowledge thereof,
notice of
53
(i) the occurrence of any event which constitutes a Default or Event
of Default, which notice shall specify the nature thereof, the period of
existence thereof and what action the Borrower proposes to take with
respect thereto,
(ii) the commencement of, or any other material development
concerning, any litigation or governmental or regulatory proceeding pending
against the Borrower or any of its Subsidiaries, if the same involves (in
the Borrower's reasonable judgment) any substantial likelihood of having a
Material Adverse Effect, and
(iii) if the same involves (in the Borrower's reasonable judgment) any
substantial likelihood of having a Material Adverse Effect, any significant
adverse change in the Borrower's or any Subsidiary's relationship with, or
any significant event or circumstance which is in the Borrower's reasonable
judgment likely to adversely affect the Borrower's or any Subsidiary's
relationship with, (A) any customer (or related group of customers)
representing more than 10% of the Borrower's consolidated revenues during
its most recent fiscal year, or (B) any supplier which is material to the
operations of the Borrower and its Subsidiaries considered as an entirety.
(F) ERISA. Promptly, and in any event within 10 days after the Borrower,
any Subsidiary of the Borrower or any ERISA Affiliate knows of the occurrence of
any of the following, the Borrower will deliver to each of the Lenders a
certificate on behalf of the Borrower of an Authorized Officer of the Borrower
setting forth the full details as to such occurrence and the action, if any,
that the Borrower, such Subsidiary or such ERISA Affiliate is required or
proposes to take, together with any notices required or proposed to be given to
or filed with or by the Borrower, the Subsidiary, the ERISA Affiliate, the PBGC,
a Plan participant or the Plan administrator with respect thereto:
(i) that a Reportable Event has occurred with respect to any Plan;
(ii) the institution of any steps by the Borrower, any ERISA
Affiliate, the PBGC or any other Person to terminate any Plan;
(iii) the institution of any steps by the Borrower or any ERISA
Affiliate to withdraw from any Plan;
(iv) the institution of any steps by the Borrower or any Subsidiary to
withdraw from any Multiemployer Plan or Multiple Employer Plan, if such
withdrawal could result in withdrawal liability (as described in Part 1 of
Subtitle E of Title IV of ERISA) in excess of $5,000,000;
(v) a non-exempt "prohibited transaction" within the meaning of
section 406 of ERISA in connection with any Plan;
(vi) that a Plan has an Unfunded Current Liability exceeding
$5,000,000;
(vii) any material increase in the contingent liability of the
Borrower or any Subsidiary with respect to any post-retirement welfare
liability; or
(viii) the taking of any action by, or the threatening of the taking
of any action by, the Internal Revenue Service, the Department of Labor or
the PBGC with respect to any of the foregoing.
(G) ENVIRONMENTAL MATTERS. Promptly upon, and in any event within 10
Business Days after, an officer of the Borrower or any of its Subsidiaries
obtains knowledge thereof, notice of one or more of the following environmental
matters: (i) any pending or threatened material Environmental Claim against the
Borrower or any of its Subsidiaries or any Real Property owned or operated by
the Borrower or any of its Subsidiaries; (ii) any condition or occurrence on or
arising from any Real Property owned or operated by the Borrower or any of its
Subsidiaries that (A) results in material noncompliance by the Borrower or any
of its Subsidiaries with any applicable Environmental Law or (B) would
reasonably be expected to form the basis of a material Environmental Claim
54
against the Borrower or any of its Subsidiaries or any such Real Property; (iii)
any condition or occurrence on any Real Property owned, leased or operated by
the Borrower or any of its Subsidiaries that could reasonably be expected to
cause such Real Property to be subject to any material restrictions on the
ownership, occupancy, use or transferability by the Borrower or any of its
Subsidiaries of such Real Property under any Environmental Law; and (iv) the
taking of any material removal or remedial action in response to the actual or
alleged presence of any Hazardous Material on any Real Property owned, leased or
operated by the Borrower or any of its Subsidiaries as required by any
Environmental Law or any governmental or other administrative agency. All such
notices shall describe in reasonable detail the nature of the Environmental
Claim, the Borrower's or such Subsidiary's response thereto and the potential
exposure in dollars of the Borrower and its Subsidiaries with respect thereto.
(H) SEC REPORTS AND REGISTRATION STATEMENTS. Promptly after transmission
thereof or other filing with the SEC, copies of all registration statements
(other than the exhibits thereto and any registration statement on Form S-8 or
its equivalent) and all annual, quarterly or current reports that the Borrower
or any of its Subsidiaries files with the SEC on Form 10-K, 10-Q or 8-K (or any
successor forms).
(I) ANNUAL AND QUARTERLY REPORTS, PROXY STATEMENTS AND OTHER REPORTS
DELIVERED TO STOCKHOLDERS GENERALLY. Promptly after transmission thereof to its
stockholders, copies of all annual, quarterly and other reports and all proxy
statements that the Borrower furnishes to its stockholders generally.
(J) PRESS RELEASES. Promptly after the release thereof to any news
organization or news distribution organization, copies of any press releases and
other similar statements intended to be made available generally by the Borrower
or any of its Subsidiaries to the public concerning material developments
relating to the Borrower or any of its Subsidiaries.
(K) OTHER INFORMATION. With reasonable promptness, such other information
or documents (financial or otherwise) relating to the Borrower or any of its
Subsidiaries as any Lender may reasonably request from time to time.
8.2. BOOKS, RECORDS AND INSPECTIONS. (a) The Borrower will, and will cause
each of its Subsidiaries to, keep proper books of record and account, in which
full and correct entries shall be made of all financial transactions and the
assets and business of the Borrower or such Subsidiaries, as the case may be, in
accordance with GAAP.
(b) The Borrower will permit officers and designated representatives of the
Administrative Agent, the Collateral Agent or any Lender, upon at least two
Business Days' notice to the Chief Financial Officer of the Borrower, to visit
and inspect any of the properties or assets of the Borrower and any of its
Subsidiaries in whomsoever's possession (but only to the extent the Borrower or
such Subsidiary has the right to do so to the extent in the possession of
another Person), to examine the books of account, records, reports and other
papers of the Borrower and any of its Subsidiaries, and make copies thereof and
take extracts therefrom, and to discuss the affairs, finances and accounts of
the Borrower and of any of its Subsidiaries with, and be advised as to the same
by, its and their officers and independent accountants and independent
actuaries, if any (and by this provision the Borrower authorizes such
independent accountants and actuaries to discuss the affairs, finances and
accounts of the Borrower and any of its Subsidiaries), all at such reasonable
times and intervals and to such reasonable extent as the Administrative Agent,
the Collateral Agent or any such Lender may request. The Administrative Agent
and the Collateral Agent may (at their own initiative), and shall (if so
instructed by the Required Lenders), exercise their rights under this section
8.2(b) from time to time. In any event, the Administrative Agent and the
Collateral Agent will promptly furnish the Lenders, and any Lender shall provide
the Administrative Agent (which shall in turn provide the Lenders) with copies
of any material documentation obtained by any of them during the course of any
inspection, examination or discussions pursuant to this section 8.2(b). If any
Lender requests copies of any other documentation so obtained by the
Administrative Agent or the Collateral Agent, the Administrative Agent or the
Collateral Agent, as applicable, will promptly furnish copies thereof to all of
the Lenders.
8.3. INSURANCE. (a) The Borrower will, and will cause each of its
Subsidiaries to, (i) maintain insurance coverage by such insurers and in such
forms and amounts and against such risks as are generally consistent with the
insurance coverage maintained by the Borrower and its Subsidiaries at the date
hereof, and (ii) forthwith upon the Administrative Agent's written request
(which the Administrative Agent may make on its own
55
initiative and shall make if so requested by the Required Lenders), furnish to
the Administrative Agent (who shall promptly distribute copies to the Lenders)
such information about such insurance as the Administrative Agent may from time
to time reasonably request, which information shall be prepared in form and
detail satisfactory to the Administrative Agent and certified by an Authorized
Officer of the Borrower.
(b) The Borrower will, and will cause each of its Subsidiaries which is a
Credit Party to, at all times keep their respective property which is subject to
the Lien of any Security Document insured in favor of the Collateral Agent, and
all policies or certificates (or certified copies thereof) with respect to such
insurance (and any other insurance maintained by the Borrower or any such
Subsidiary) (i) shall be endorsed to the Collateral Agent's satisfaction for the
benefit of the Collateral Agent (including, without limitation, by naming the
Collateral Agent as loss payee (with respect to Collateral) or, to the extent
permitted by applicable law, as an additional insured), (ii) shall state that
such insurance policies shall not be canceled without 30 days' prior written
notice thereof (or 10 days' prior written notice in the case of cancellation for
the non-payment of premiums) by the respective insurer to the Collateral Agent,
(iii) shall provide that the respective insurers irrevocably waive any and all
rights of subrogation with respect to the Collateral Agent and the Lenders, and
(iv) shall in the case of any such certificates or endorsements in favor of the
Collateral Agent, be delivered to or deposited with the Collateral Agent. In no
event shall the Borrower be required to deposit the actual insurance policies
with the Collateral Agent. The Administrative Agent shall deliver copies of any
certificates of insurance to a Lender upon such Lender's reasonable request.
(c) If the Borrower or any of its Subsidiaries shall fail to maintain all
insurance in accordance with this section 8.3, or if the Borrower or any of its
Subsidiaries shall fail to so endorse and deliver or deposit all endorsements or
certificates with respect thereto, the Administrative Agent and/or the
Collateral Agent shall have the right (but shall be under no obligation), upon
prior written notice to the Borrower, to procure such insurance and the Borrower
agrees to reimburse the Administrative Agent or the Collateral Agent, as the
case may be, on demand, for all costs and expenses of procuring such insurance.
8.4. PAYMENT OF TAXES AND CLAIMS. The Borrower will pay and discharge, and
will cause each of its Subsidiaries to pay and discharge, all taxes, assessments
and governmental charges or levies imposed upon it or upon its income or
profits, or upon any properties belonging to it, prior to the date on which
penalties attach thereto, and all lawful claims which, if unpaid, might become a
Lien or charge upon any properties of the Borrower or any of its Subsidiaries;
PROVIDED that neither the Borrower nor any of its Subsidiaries shall be required
to pay any such tax, assessment, charge, levy or claim which is being contested
in good faith and by proper proceedings if it has maintained adequate reserves
with respect thereto in accordance with GAAP; and PROVIDED, FURTHER, that the
Borrower will not be considered to be in default of any of the provisions of
this sentence if the Borrower or any Subsidiary fails to pay any such amount
which, individually or in the aggregate, is immaterial. Without limiting the
generality of the foregoing, the Borrower will, and will cause each of its
Subsidiaries to, pay in full all of its wage obligations to its employees in
accordance with the Fair Labor Standards Act (29 U.S.C. sections 206-207) and
any comparable provisions of applicable law.
8.5. CORPORATE FRANCHISES. The Borrower will do, and will cause each of its
Subsidiaries to do, or cause to be done, all things necessary to preserve and
keep in full force and effect its corporate existence, rights and authority,
PROVIDED that nothing in this section 8.5 shall be deemed to prohibit (i) any
transaction permitted by section 9.2; (ii) the termination of existence of any
Subsidiary if (A) the Borrower determines that such termination is in its best
interest and (B) such termination is not adverse in any material respect to the
Lenders; or (iii) the loss of any rights, authorities or franchises if the loss
thereof, in the aggregate, could not reasonably be expected to have a Material
Adverse Effect.
8.6. MAINTENANCE OF PROPERTIES. The Borrower will, and will cause each of
its Subsidiaries to, ensure that its material properties and equipment used or
useful in its business in whomsoever's possession they may be, in good repair,
working order and condition, ordinary wear and tear excepted, and that from time
to time there are made in such properties and equipment all needful and proper
repairs, renewals, replacements, extensions, additions, betterments and
improvements, thereto, to the extent and in the manner customary for companies
in similar businesses.
8.7. COMPLIANCE WITH STATUTES, ETC. The Borrower will, and will cause each
of its Subsidiaries to, comply, in all material respects, with all applicable
statutes, regulations and orders of, and all applicable restrictions
56
imposed by, all governmental bodies, domestic or foreign, in respect of the
conduct of its business and the ownership of its property, other than those the
noncompliance with which would not have, and which would not be reasonably
expected to have, a Material Adverse Effect.
8.8. COMPLIANCE WITH ENVIRONMENTAL LAWS. Without limitation of the
covenants contained in section 8.7 hereof,
(a) The Borrower will comply, and will cause each of its Subsidiaries to
comply, in all material respects, with all Environmental Laws applicable to the
ownership, lease or use of all Real Property now or hereafter owned, leased or
operated by the Borrower or any of its Subsidiaries, and will promptly pay or
cause to be paid all costs and expenses incurred in connection with such
compliance, EXCEPT to the extent that such compliance with Environmental Laws is
being contested in good faith and by appropriate proceedings and for which
adequate reserves have been established to the extent required by GAAP, and an
adverse outcome in such proceedings is not reasonably expected to have a
Material Adverse Effect.
(b) The Borrower will keep or cause to be kept, and will cause each of its
Subsidiaries to keep or cause to be kept, all such Real Property free and clear
of any Liens imposed pursuant to such Environmental Laws which are not permitted
under section 9.3.
(c) Neither the Borrower nor any of its Subsidiaries will generate, use,
treat, store, release or dispose of, or permit the generation, use, treatment,
storage, release or disposal of, Hazardous Materials on any Real Property now or
hereafter owned, leased or operated by the Borrower or any of its Subsidiaries
or transport or permit the transportation of Hazardous Materials to or from any
such Real Property other than in compliance with applicable Environmental Laws
and in the ordinary course of business, except for such noncompliance as would
not have, and which would not be reasonably expected to have, a Material Adverse
Effect.
(d) If required to do so under any applicable order of any governmental
agency, the Borrower will undertake, and cause each of its Subsidiaries to
undertake, any clean up, removal, remedial or other action necessary to remove
and clean up any Hazardous Materials from any Real Property owned, leased or
operated by the Borrower or any of its Subsidiaries in accordance with, in all
material respects, the requirements of all applicable Environmental Laws and in
accordance with, in all material respects, such orders of all governmental
authorities, except to the extent that the Borrower or such Subsidiary is
contesting such order in good faith and by appropriate proceedings and for which
adequate reserves have been established to the extent required by GAAP.
(e) At the written request of the Administrative Agent or the Required
Lenders, which request shall specify in reasonable detail the basis therefor, at
any time and from time to time after the Lenders receive notice under section
8.1(g) for any Environmental Claim involving potential expenditures by the
Borrower or any of its Subsidiaries in excess of $5,000,000 in the aggregate for
any Real Property, the Borrower will provide, at its sole cost and expense, an
environmental site assessment report concerning any such Real Property now or
hereafter owned, leased or operated by the Borrower or any of its Subsidiaries,
prepared by an environmental consulting firm reasonably acceptable to the
Administrative Agent, indicating the presence or absence of Hazardous Materials
and the potential cost of any removal or a remedial action in connection with
any Hazardous Materials on such Real Property. If the Borrower fails to provide
the same within 90 days after such request was made, the Administrative Agent
may order the same, and the Borrower shall grant and hereby grants, to the
Administrative Agent and the Lenders and their agents, access to such Real
Property and specifically grants the Administrative Agent and the Lenders an
irrevocable non-exclusive license, subject to the rights of tenants, to
undertake such an assessment, all at the Borrower's expense.
8.9. FISCAL YEARS, FISCAL QUARTERS. If the Borrower shall change any of its
or any of its Subsidiaries' fiscal years or fiscal quarters (other than the
fiscal year or fiscal quarters of a Person which becomes a Subsidiary, made at
the time such Person becomes a Subsidiary to conform to the Borrower's fiscal
year and fiscal quarters), the Borrower will promptly, and in any event within
30 days following any such change, deliver a notice to the Administrative Agent
and the Lenders describing such change and any material accounting entries made
in connection therewith and stating whether such change will have any impact
upon any financial computations to be made hereunder, and if any such impact is
foreseen, describing in reasonable detail the nature and extent of such impact.
If the Required Lenders determine that any such change will have any impact upon
any financial
57
computations to be made hereunder which is adverse to the Lenders, the Borrower
will, if so requested by the Administrative Agent, enter into an amendment to
this Agreement, in form and substance reasonably satisfactory to the
Administrative Agent and the Required Lenders, modifying any of the financial
covenants or related provisions hereof in such manner as the Required Lenders
determine is necessary to eliminate such adverse effect.
8.10. HEDGE AGREEMENTS, ETC. In the event the Borrower or any of its
Subsidiaries determines to enter into a Hedge Agreement it may do so, provided
that (i) the Hedge Agreement does not expose the Borrower or its Subsidiaries to
predominantly speculative risks unrelated to the amount of assets, Indebtedness
or other liabilities intended to be subject to coverage on a notional basis
under all such Hedge Agreements; and (ii) in the case of any Hedge Agreement
entered into after the Effective Date with respect to interest rates, only if
the proposed form thereof (including any proposed pricing or other material
terms) has been provided to the Administrative Agent, for its consideration of
any potential intercreditor issues, contemporaneously with the entry into such
Hedge Agreement.
8.11. CERTAIN SUBSIDIARIES TO JOIN IN SUBSIDIARY GUARANTY. (a) In the event
that at any time after the Closing Date
(x) the Borrower has any Subsidiary (other than a Subsidiary that is
not a Material Subsidiary and other than a Foreign Subsidiary as to which
section 8.11(b) applies) that is not a party to the Subsidiary Guaranty, or
(y) an Event of Default shall have occurred and be continuing and the
Borrower has any Subsidiary which is not a party to the Subsidiary
Guaranty,
the Borrower will notify the Administrative Agent in writing of such event,
identifying the Subsidiary in question and referring specifically to the rights
of the Administrative Agent and the Lenders under this section. The Borrower
will, within 30 days following request therefor from the Administrative Agent
(who may give such request on its own initiative or upon request by the Required
Lenders), cause such Subsidiary to deliver to the Administrative Agent, in
sufficient quantities for the Lenders, (i) a joinder supplement, reasonably
satisfactory in form and substance to the Administrative Agent and the Required
Lenders, duly executed by such Subsidiary, pursuant to which such Subsidiary
joins in the Subsidiary Guaranty as a guarantor thereunder, and (ii) resolutions
of the Board of Directors (or similar governing body) of such Subsidiary,
certified by the Secretary or an Assistant Secretary of such Subsidiary as duly
adopted and in full force and effect, authorizing the execution and delivery of
such joinder supplement, or if such Subsidiary is not a corporation, such other
evidence of the authority of such Subsidiary to execute such joinder supplement
as the Administrative Agent may reasonably request. Notwithstanding anything
herein to the contrary, in the event that any Subsidiary of the Borrower is at
any time a guarantor under the Public Notes Documents and has not guaranteed the
Obligations hereunder, such Subsidiary shall have executed and delivered a
Subsidiary Guaranty and the Additional Security documents contemplated by
section 8.12 hereof in form and substance acceptable to the Administrative Agent
in its discretion.
(b) Notwithstanding the foregoing provisions of this section 8.11 or the
provisions of section 8.12 hereof, the Borrower shall not, unless an Event of
Default shall have occurred and be continuing, be required to pledge (or cause
to be pledged) more than 65% of the stock or other equity interests in any first
tier Foreign Subsidiary, or any of the stock or equity interests in any first
tier Foreign Subsidiaries which alone or when combined or consolidated with each
other would not constitute a Material Subsidiary, or any of the stock or other
equity interests in any other Foreign Subsidiary, or to cause a Foreign
Subsidiary to join in the Subsidiary Guaranty or to become a party to the
Security Agreement or any other Security Document.
8.12. ADDITIONAL SECURITY; FURTHER ASSURANCES. (a) In the event that at any
time after the Closing Date the Borrower or any of its Subsidiaries owns or
holds an interest in any Real Property, assets, stock, securities or any other
property or interest, located within or outside of the United States or arising
out of business conducted from any location within or outside the United States,
which is not at the time included in the Collateral and is not subject to a
Permitted Lien securing Indebtedness (all of the foregoing, "UNCOLLATERALIZED
PROPERTY"), the Borrower will notify the Administrative Agent in writing of such
event, identifying the Uncollateralized Property in question and referring
specifically to the rights of the Administrative Agent and the Lenders under
this section 8.12; PROVIDED that notwithstanding the foregoing, the Borrower
need not notify the Administrative Agent under this section 8.12(a) of (x) any
leasehold interest which is acquired or held by the Borrower or any Subsidiary
unless the same involves a
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nominal or bargain purchase price option, or (y) any Uncollateralized Property
which at the time is not required to be included in the Collateral pursuant to
section 8.11(b) or the proviso at the end of section 8.12(b).
(b) The Borrower will, or will cause an applicable Subsidiary to, within 30
days following request by the Collateral Agent (who may make such request on its
own initiative or upon instructions from the Required Lenders), grant the
Collateral Agent for the benefit of the Secured Creditors (as defined in the
Security Documents) security interests and mortgages or deeds of trust, pursuant
to the Pledge Agreement or other new documentation (each an "ADDITIONAL SECURITY
DOCUMENT") or joinder in any existing Security Document to which it is not
already a party, in all of the Uncollateralized Property as to which the
Administrative Agent has notified the Borrower that the same is required to be
included in the Collateral, SUBJECT to obtaining any required consents from
third parties (including third party lessors and co-venturers) necessary to be
obtained for the granting of a Lien on any particular Uncollateralized Property
(with the Borrower hereby agreeing to use, and to cause its Subsidiaries to use,
reasonable best efforts to obtain such consents), and ALSO subject to the
provisions of section 8.11(b); PROVIDED that the Borrower shall not be required
to cause to be delivered any mortgage or deed of trust on any Leasehold or other
Real Property, or any chattel mortgage or security agreement covering an
aircraft, unless an Event of Default shall have occurred and be continuing. The
Borrower will, or will cause an applicable Subsidiary to, upon the request of
the Collateral Agent, delivered after the occurrence and during the continuance
of an Event of Default, promptly deliver mortgages, deeds of trust, chattel
mortgages and other security agreements covering any Uncollateralized Property
as the Collateral Agent may request.
(c) Each Additional Security Document (i) shall be granted pursuant to
documentation reasonably satisfactory in form and substance to the
Administrative Agent, which documentation shall in the case of Real Property
owned in fee be accompanied by such Phase I environmental reports or
assessments, a mortgage policy of title insurance (subject to a standard survey
exception), and other supporting documentation requested by and reasonably
satisfactory in form and substance to the Administrative Agent; and (ii) shall
constitute a valid and enforceable perfected Lien upon the interests or
properties so included in the Collateral, superior to and prior to the rights of
all third Persons and subject to no other Liens except those permitted by
section 9.3 or otherwise agreed by the Administrative Agent at the time of
perfection thereof and (in the case of Real Property or interests therein) such
other encumbrances as may be set forth in the mortgage policy, if any, relating
to such Additional Security Document which shall be delivered to the Collateral
Agent together with such Additional Security Document and which shall be
satisfactory in form and substance to the Collateral Agent and the
Administrative Agent. The Borrower, at its sole cost and expense, will cause
each Additional Security Document or instruments related thereto to be duly
recorded or filed in such manner and in such places as are required by law to
establish, perfect, preserve and protect the Liens created thereby required to
be granted pursuant to the Additional Security Document, and will pay or cause
to be paid in full all taxes, fees and other charges payable in connection
therewith. Furthermore, the Borrower shall cause to be delivered to the
Collateral Agent such opinions of local counsel, appraisals, title insurance,
environmental assessments, consents of landlords, lien waivers from landlords or
mortgagees and other related documents as may be reasonably requested by the
Collateral Agent in connection with the execution, delivery and recording of any
Additional Security Document, all of which documents shall be in form and
substance reasonably satisfactory to the Collateral Agent and the Administrative
Agent, except that no leasehold mortgage or deed of trust, title insurance or
surveys shall be required for any leasehold properties (unless the lessee has a
nominal or bargain purchase option).
(d) The Borrower will, and will cause each of its Subsidiaries to, at the
expense of the Borrower, make, execute, endorse, acknowledge, file and/or
deliver to the Collateral Agent from time to time such conveyances, financing
statements, transfer endorsements, powers of attorney, certificates, and other
assurances or instruments and take such further steps relating to the Collateral
covered by any of the Security Documents as the Collateral Agent may reasonably
require. If at any time the Collateral Agent determines, based on applicable
law, that all applicable taxes (including, without limitation, mortgage
recording taxes or similar charges) were not paid in connection with the
recordation of any mortgage or deed of trust, the Borrower shall promptly pay
the same upon demand.
(e) The Borrower will if requested by any Lender at any time, in order to
meet any legal requirement applicable to such Lender, provide to the Collateral
Agent and the Lenders, at the sole cost and expense of the Borrower, appraisals
and other supporting documentation relating to any mortgage or deed of trust
delivered as an Additional Security Document hereunder, as specified by any
Lender, meeting the appraisal and other
59
documentation requirements of the Real Estate Reform Amendments of the Financial
Institution Reform, Recovery and Enforcement Act of 1989, as amended, or any
other legal requirements applicable to any Lender, which in the case of any such
appraisal shall be prepared by one or more valuation firms of national standing,
acceptable to the Required Lenders, utilizing appraisal standards satisfying
such Amendments, Act or other legal requirements.
(f) For the avoidance of doubt, the Borrower shall have no obligation to
cause to be delivered any survey of any Real Property which is covered by any
mortgage, deed of trust or similar instrument constituting an Additional
Security Document so as to permit a title Borrower to eliminate by endorsement
the "survey exception" to the title policy for such Real Property.
(g) Notwithstanding the foregoing provisions of this section 8.12, in the
event the Administrative Agent notifies the Borrower that the Required Lenders
have determined on the basis of an environmental report or assessment delivered
by the Borrower pursuant to the provisions of section 8.12(c) that an Additional
Security Document encumbering any particular Real Property should not be
delivered under this section 8.12, the Borrower shall be relieved of its
obligation in this section 8.12 to deliver or cause to be delivered an
Additional Security Document in the form of a mortgage, deed of trust or similar
instrument covering such Real Property, SUBJECT to any later determination by
the Required Lenders notified to the Borrower by the Administrative Agent that
an Additional Security Document in the form of a mortgage, deed of trust or
similar instrument covering such Real Property should be executed and delivered
hereunder.
(h) As promptly as practicable after the date (i) any Credit Party has any
Collateral located in a jurisdiction as to which the Administrative Agent shall
not previously have received a lien search report listing all effective UCC
financing statements and other Liens filed against such Credit Party in such
jurisdiction and containing copies of all such effective UCC financing
statements and other Lien documents, (ii) any Person first becomes a Credit
Party, or (iii) any UCC financing statement or Security Document is filed
against any Credit Party to perfect security interests granted pursuant to the
Security Agreement or any other Security Document, the Borrower will, at its
expense, cause to be delivered to the Administrative Agent and the Lenders
search reports listing all effective UCC financing statements and other Lien
documents filed against such Person or Credit Party in each applicable
jurisdiction and containing copies of all such effective UCC financing
statements and other Lien documents. In addition, whenever requested by the
Administrative Agent, but not more frequently than once in any 12-month period,
the Borrower will promptly provide the Administrative Agent and the Lenders with
such new or updated title, lien, judgment, patent, trademark and UCC financing
statement searches or reports as to the Borrower or any of its Subsidiaries, or
any Collateral of any Credit Party, as the Administrative Agent may specify to
the Borrower in its request.
(i) The Collateral Agent is authorized, without the consent of any of the
Lenders, to (i) enter into any modification of any Security Document which the
Collateral Agent reasonably believes is required to conform to the mandatory
requirements of local law, or to local customs followed by financial
institutions with respect to similar collateral documents involving property
located in any particular jurisdiction, (ii) in the case of any Security
Document relating to property located in a particular jurisdiction which imposes
a tax with respect to such Security Document based on the amount of the
obligations secured thereby, expressly limit the amount of such secured
obligations which are secured by such property to such amount as, in the
Collateral Agent's good faith judgment, is appropriate so that the amount of
such tax is reasonable in light of the estimated value of the property located
in such jurisdiction, and/or (iii) designate the amount of title insurance
coverage for any title insurance policy provided hereunder in an amount
reasonably believed by the Collateral Agent to be representative of the fair
value of the property covered thereby.
(j) The Borrower will provide the Administrative Agent with sufficient
copies of each Additional Security Document and any additional supporting
documents delivered in connection therewith for distribution of copies thereof
to the Lenders, and the Administrative Agent will promptly so distribute such
copies.
8.13. CASUALTY AND CONDEMNATION. (a) The Borrower will promptly (and in any
event within 10 days) furnish to the Administrative Agent and the Lenders
written notice of any Event of Loss involving any property included in the
Collateral which is reasonably believed to be in excess of $10,000,000.
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(b) If any Event of Loss results in Net Cash Proceeds (whether in the form
of insurance proceeds, a condemnation award or otherwise), a portion or all of
which is required to be applied as a prepayment of the Loans or to the
rebuilding or restoration of any affected property pursuant to section 5.2, the
Collateral Agent is authorized to collect such Net Cash Proceeds and, if
received by any Credit Party, the Borrower will, or will cause any applicable
Credit Party, to pay over such Net Cash Proceeds to the Collateral Agent.
8.14. LANDLORD/MORTGAGEE WAIVERS; BAILEE LETTERS. If requested to do so by
the Administrative Agent (who may so request on its own initiative and who shall
so request if required to do so by instructions from the Required Lenders), the
Borrower will promptly (and in any event within 60 days following any such
request) obtain, and thereafter the Borrower will maintain in effect, (a) lien
waivers from landlords and mortgagees having any interest in any Real Property
on which any tangible items of Collateral, having a minimum value as specified
by the Administrative Agent in such request, are located, substantially in the
form provided by, or otherwise reasonably acceptable to, the Administrative
Agent, and (b) bailee letters, substantially in the form provided by, or
otherwise reasonably acceptable to, the Administrative Agent, from Persons
unrelated to any of the Credit Parties who are parties to the Security Agreement
to whom any tangible items of Collateral having a minimum value as specified by
the Administrative Agent in such request, have been delivered for storage, use,
consignment or similar purposes.
8.15. MOST FAVORED COVENANT STATUS. Should the Borrower at any time after
the Effective Date, issue or guarantee any Indebtedness denominated in Dollars
for money borrowed or represented by bonds, notes, debentures or similar
securities in an aggregate amount exceeding $10,000,000, to any lender or group
of lenders acting in concert with one another, or one or more institutional
investors, pursuant to a loan agreement, credit agreement, note purchase
agreement, indenture, guaranty or other similar instrument, which agreement,
indenture, guaranty or instrument, includes affirmative or negative business or
financial covenants (or any events of default or other type of restriction which
would have the practical effect of any affirmative or negative business or
financial covenant, including, without limitation, any "put" or mandatory
prepayment of such Indebtedness upon the occurrence of a "change of control")
which are applicable to the Borrower, other than those set forth herein or in
any of the other Credit Documents, the Borrower shall promptly so notify the
Administrative Agent and the Lenders and, if the Administrative Agent shall so
request by written notice to the Borrower (after a determination has been made
by the Required Lenders that any of the above-referenced documents or
instruments contain any such provisions, which either individually or in the
aggregate, are more favorable to the holders of such unsecured Indebtedness than
any of the provisions set forth herein), the Borrower, the Administrative Agent
and the Lenders shall promptly amend this Agreement to incorporate some or all
of such provisions, in the discretion of the Administrative Agent and the
Required Lenders, into this Agreement and, to the extent necessary and
reasonably desirable to the Administrative Agent and the Required Lenders, into
any of the other Credit Documents, all at the election of the Administrative
Agent and the Required Lenders.
8.16. SENIOR DEBT. The Borrower will at all times ensure that (i) the
claims of the Lenders in respect of the Obligations of the Borrower will in all
respects rank prior to the claims of every unsecured creditor of the Borrower,
and (ii) any Indebtedness of the Borrower which is subordinated in any manner to
the claims of any other creditor of the Borrower will be subordinated in like
manner to such claims of the Lenders.
SECTION 9. NEGATIVE COVENANTS
The Borrower hereby covenants and agrees that on the Effective Date and
thereafter for so long as this Agreement is in effect and until such time as the
Total Commitment has been terminated, no Notes or Letters of Credit remain
outstanding and the Loans, together with interest, Fees and all other
Obligations incurred hereunder and under the other Credit Documents, have been
paid in full:
9.1. CHANGES IN BUSINESS. Neither the Borrower nor any of its Subsidiaries
will engage in any business if, as a result, the general nature of the business,
taken on a consolidated basis, which would then be engaged in by the Borrower
and its Subsidiaries, would be substantially changed from the general nature of
the business engaged in by the Borrower and its Subsidiaries on the Effective
Date.
9.2. CONSOLIDATION, MERGER, ACQUISITIONS, ASSET SALES, ETC. The Borrower
will not, and will not permit any Subsidiary to, (1) wind up, liquidate or
dissolve its affairs, (2) enter into any transaction of merger or consolidation,
(3) make or otherwise effect any Acquisition, (4) sell or otherwise dispose of
any of its property or
61
assets outside the ordinary course of business, or otherwise make or otherwise
effect any Asset Sale, or (5) agree to do any of the foregoing at any future
time, EXCEPT that the following shall be permitted:
(A) CERTAIN INTERCOMPANY MERGERS, ETC. If no Default or Event of Default
shall have occurred and be continuing or would result therefrom,
(i) the merger, consolidation or amalgamation of any Subsidiary of the
Borrower with or into the Borrower, PROVIDED the Borrower is the surviving
or continuing or resulting corporation;
(ii) the merger, consolidation or amalgamation of any Domestic
Subsidiary of the Borrower with or into another Domestic Subsidiary of the
Borrower, PROVIDED that the surviving or continuing or resulting
corporation is a Domestic Subsidiary of the Borrower which is a Subsidiary
Guarantor and a Wholly-Owned Subsidiary of the Borrower;
(iii) the merger, consolidation or amalgamation of any Foreign
Subsidiary of the Borrower (other than any which is the Borrower hereunder)
with or into another Foreign Subsidiary of the Borrower, PROVIDED that the
surviving or continuing or resulting corporation is a Wholly-Owned
Subsidiary of the Borrower;
(iv) the liquidation, winding up or dissolution of (x) any
Wholly-Owned Subsidiary of the Borrower; or (y) any other Subsidiary of the
Borrower in an Asset Sale permitted under section 9.2(d); and
(v) the transfer or other disposition of any property by the Borrower
to any Wholly-Owned Subsidiary or by any Subsidiary to the Borrower or any
other Wholly-Owned Subsidiary of the Borrower, regardless of whether such
intercompany transaction would constitute an Asset Sale.
(B) OTHER MERGERS, ETC. INVOLVING THE BORROWER. The Borrower may
consolidate or merge with any other corporation, or sell, transfer or otherwise
dispose of all or substantially all of the property and assets of the Borrower
and its Subsidiaries to any Person, if (i) the surviving, continuing or
resulting corporation of such merger or consolidation (if other than the
Borrower) or the acquiring Person unconditionally assumes the obligations of the
Borrower under the Credit Documents pursuant to an assumption agreement in form
and substance reasonably satisfactory to the Required Lenders, (ii) no Event of
Default has occurred and is continuing or would result therefrom, (iii) no
Change of Control would be occasioned thereby; and (iv) if any such merger or
consolidation is entered into for the purpose of effecting an Acquisition, such
Acquisition is permitted by section 9.2(c).
(C) ACQUISITIONS. If no Default or Event of Default shall have occurred and
be continuing or would result therefrom, the Borrower or any Subsidiary may make
any Acquisition which is a Permitted Acquisition, PROVIDED that all of the
conditions contained in the definition of the term Permitted Acquisition are
satisfied.
(D) PERMITTED DISPOSITIONS. If no Default or Event of Default shall have
occurred and be continuing or would result therefrom, the Borrower or any of its
Subsidiaries may (i) sell any property, land or building (including any related
receivables or other intangible assets) to any Person which is not a Subsidiary
of the Borrower, or (ii) sell the entire capital stock (or other equity
interests) and Indebtedness of any Subsidiary owned by the Borrower or any other
Subsidiary to any Person which is not a Subsidiary of the Borrower, or (iii)
permit any Subsidiary to be merged or consolidated with a Person which is not an
Affiliate of the Borrower, or (iv) consummate any other Asset Sale with a Person
who is not a Subsidiary of the Borrower; PROVIDED that:
(A) the consideration for such transaction represents fair value
(as determined by management of the Borrower), and at least 80% of
such consideration consists of cash;
(B) the cumulative aggregate consideration for all such
transactions completed during any fiscal year does not exceed
$35,000,000;
(C) in the case of any such transaction involving consideration
in excess of $10,000,000, at least five Business Days prior to the
date of completion of such transaction the
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Borrower shall have delivered to the Administrative Agent an officer's
certificate executed on behalf of the Borrower by an Authorized
Officer of the Borrower, which certificate shall contain (1) a
description of the proposed transaction, the date such transaction is
scheduled to be consummated, the estimated purchase price or other
consideration for such transaction, (2) a certification that no
Default or Event of Default has occurred and is continuing, or would
result from consummation of such transaction, and (3) which shall (if
requested by the Administrative Agent) include a certified copy of the
draft or definitive documentation pertaining thereto; and
(D) contemporaneously with the completion of such transaction the
Borrower prepays the Loans as and to the extent required by section
5.2 hereof.
(E) LEASES. The Borrower or any of its Subsidiaries may enter into leases
of property or assets not constituting Acquisitions, PROVIDED such leases are
not otherwise in violation of this Agreement.
(F) CAPITAL EXPENDITURES: The Borrower and its Subsidiaries shall be
permitted to make any Consolidated Capital Expenditures, PROVIDED such
Consolidated Capital Expenditures are not otherwise in violation of this
Agreement.
(G) PERMITTED INVESTMENTS. The Borrower and its Subsidiaries shall be
permitted to make the investments permitted pursuant to section 9.5.
To the extent any Collateral is sold, transferred or disposed of as permitted by
this section 9.2, (i) such Collateral shall be sold, transferred or disposed of
free and clear of the Liens created by the respective Security Documents; (ii)
if such Collateral includes all of the capital stock of a Subsidiary which is a
party to the Subsidiary Guaranty or whose stock is pledged pursuant to the
Pledge Agreement, such capital stock shall be released from the Pledge Agreement
and such Subsidiary shall be released from the Subsidiary Guaranty; and (iii)
the Administrative Agent and the Collateral Agent shall be authorized to take
actions deemed appropriate by them in order to effectuate the foregoing.
9.3. LIENS. The Borrower will not, and will not permit any of its
Subsidiaries to, create, incur, assume or suffer to exist any Lien upon or with
respect to any property or assets of any kind (real or personal, tangible or
intangible) of the Borrower or any such Subsidiary whether now owned or
hereafter acquired, or sell any such property or assets subject to an
understanding or agreement, contingent or otherwise, to repurchase such property
or assets (including sales of accounts receivable or notes with or without
recourse to the Borrower or any of its Subsidiaries, other than for purposes of
collection of delinquent accounts in the ordinary course of business) or assign
any right to receive income, or file or permit the filing of any financing
statement under the UCC or any other similar notice of Lien under any similar
recording or notice statute, EXCEPT that the foregoing restrictions shall not
apply to:
(A) STANDARD PERMITTED LIENS: the Standard Permitted Liens;
(B) EXISTING LIENS, ETC.: Liens (i) in existence on the Effective Date
which are listed, and the Indebtedness secured thereby and the property subject
thereto on the Effective Date described, in Annex IV, or (ii) arising out of the
refinancing, extension, renewal or refunding of any Indebtedness secured by any
such Liens, PROVIDED that the principal amount of such Indebtedness is not
increased and such Indebtedness is not secured by any additional assets;
(C) PURCHASE MONEY LIENS: Liens (i) which are placed upon fixed or capital
assets, acquired, constructed or improved by the Borrower or any Subsidiary,
PROVIDED that (A) such Liens secure Indebtedness permitted by section 9.4(c),
(B) such Liens and the Indebtedness secured thereby are incurred prior to or
within 120 days after such acquisition or the completion of such construction or
improvement, (C) the Indebtedness secured thereby does not exceed 100% of the
cost of acquiring, constructing or improving such fixed or capital assets; and
(D) such Liens shall not apply to any other property or assets of the Borrower
or any Subsidiary; or (ii) arising out of the refinancing, extension, renewal or
refunding of any Indebtedness secured by any such Liens, PROVIDED that the
63
principal amount of such Indebtedness is not increased and such Indebtedness is
not secured by any additional assets;
(D) LIENS ON ACQUIRED PROPERTIES: any Lien (i) existing on any property or
asset prior to the acquisition thereof by the Borrower or any Subsidiary, or
existing on any property or asset of any Person that becomes a Subsidiary after
the date hereof prior to the time such Person becomes a Subsidiary; PROVIDED
that (A) such Lien secures Indebtedness permitted by section 9.4(c), (B) such
Lien is not created in contemplation of or in connection with such acquisition
or such Person becoming a Subsidiary, as the case may be, (C) such Lien shall
not attach or apply to any other property or assets of the Borrower or any
Subsidiary, (D) such Lien shall secure only those obligations which it secures
on the date of such acquisition or the date such Person becomes a Subsidiary, as
the case may be; or (ii) arising out of the refinancing, extension, renewal or
refunding of any Indebtedness secured by any such Liens, PROVIDED that the
principal amount of such Indebtedness is not increased and such Indebtedness is
not secured by any additional assets; and
(E) ADDITIONAL LIENS: additional Liens (including Liens securing
Indebtedness permitted pursuant to section 9.4(c)(iii)) covering property of the
Borrower or its Subsidiaries, securing Indebtedness in an aggregate principal
amount not exceeding, at the time of incurrence thereof, $25,000,000 as to all
such Indebtedness.
9.4. INDEBTEDNESS. The Borrower will not, and will not permit any of its
Subsidiaries to, contract, create, incur, assume or suffer to exist any
Indebtedness of the Borrower or any of its Subsidiaries, EXCEPT:
(A) CREDIT DOCUMENTS: Indebtedness incurred under this Agreement and the
other Credit Documents;
(B) EXISTING INDEBTEDNESS: Existing Indebtedness (including, without
limitation, the Indebtedness of the Borrower under the Public Notes), and any
refinancing, extension, renewal or refunding of any such Existing Indebtedness,
not involving an increase in the principal amount thereof or a reduction of more
than 10% in the remaining weighted average life to maturity thereof (computed in
accordance with standard financial practice);
(C) CERTAIN PRIORITY DEBT: in addition to the Indebtedness which is
permitted by the preceding clauses, the following additional Indebtedness:
(i) Indebtedness consisting of Capitalized Lease Obligations of the
Borrower and its Subsidiaries,
(ii) Indebtedness consisting of obligations under Synthetic Leases of
the Borrower and its Subsidiaries,
(iii) Indebtedness secured by a Lien referred to in section 9.3(c) or
9.3(d), and
(iv) other Indebtedness of Subsidiaries of the Borrower (exclusive of
Indebtedness owed pursuant to any of the Credit Documents, or to the
Borrower or a Wholly-Owned Subsidiary of the Borrower);
PROVIDED that (A) at the time of any incurrence thereof after the date
hereof, and after giving effect thereto, the Borrower would be in
compliance with sections 9.7, 9.8, and 9.9, and no Event of Default shall
have occurred and be continuing or would result therefrom; and (B) the
aggregate outstanding principal amount (using Capitalized Lease Obligations
in lieu of principal amount, in the case of any Capital Lease, and using
the present value, based on the implicit interest rate, in lieu of
principal amount, in the case of any Synthetic Lease) of Indebtedness
permitted by this clause (c), shall not exceed $30,000,000;
(D) INTERCOMPANY DEBT: the following: (i) unsecured Indebtedness of the
Borrower owed to any of its Subsidiaries, PROVIDED such Indebtedness constitutes
Subordinated Indebtedness; and (ii) unsecured Indebtedness of any of the
Borrower's Subsidiaries to the Borrower or to another Subsidiary of the
Borrower, representing loans or advances permitted by section 9.5 hereof
provided that any such intercompany loans which are made by or to
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Domestic Subsidiaries are evidenced by promissory notes pledged to the
Collateral Agent pursuant to the Security Documents;
(E) HEDGE AGREEMENTS: Indebtedness of the Borrower and its Subsidiaries
under Hedge Agreements;
(F) GUARANTY OBLIGATIONS: any Guaranty Obligations permitted by section
9.5; and
(G) ADDITIONAL DEBT OF FOREIGN SUBSIDIARIES: unsecured Indebtedness not
otherwise permitted by the foregoing clauses incurred by Foreign Subsidiaries in
an amount not to exceed at any time $50,000,000.
9.5. ADVANCES, INVESTMENTS, LOANS AND GUARANTY OBLIGATIONS. The Borrower
will not, and will not permit any of its Subsidiaries to, (1) lend money or
credit or make advances to any Person, (2) purchase or acquire any stock,
obligations or securities of, or any other interest in, or make any capital
contribution to, or other investment in, any Person, (3) create, acquire or hold
any Subsidiary, (4) be or become a party to any joint venture or partnership, or
(5) be or become obligated under any Guaranty Obligations (other than those
which may be created in favor of the Lenders and any other benefited creditors
under any Designated Hedge Agreements pursuant to the Credit Documents), EXCEPT:
(a) the Borrower or any of its Subsidiaries may invest in cash and Cash
Equivalents;
(b) any endorsement of a check or other medium of payment for deposit or
collection, or any similar transaction in the normal course of business;
(c) the Borrower and its Subsidiaries may acquire and hold receivables
owing to them in the ordinary course of business and payable or dischargeable in
accordance with customary trade terms;
(d) investments acquired by the Borrower or any of its Subsidiaries (i) in
exchange for any other investment held by the Borrower or any such Subsidiary in
connection with or as a result of a bankruptcy, workout, reorganization or
recapitalization of the issuer of such other investment, or (ii) as a result of
a foreclosure by the Borrower or any of its Subsidiaries with respect to any
secured investment or other transfer of title with respect to any secured
investment in default;
(e) loans and advances to employees for business-related travel expenses,
moving expenses, costs of replacement homes, business machines or supplies,
automobiles and other similar expenses, in each case incurred in the ordinary
course of business;
(f) to the extent not permitted by the foregoing clauses, the existing
loans, advances, investments and guarantees described on Annex V hereto;
(g) investments of the Borrower and its Subsidiaries in Hedge Agreements;
(h) existing investments in any Subsidiaries and any additional investments
in any Domestic Subsidiary Guarantor;
(i) intercompany loans and advances made by the Borrower or any other
Subsidiary to a Subsidiary which is both a Subsidiary Guarantor and a Domestic
Subsidiary necessary in the ordinary course of business consistent with past
practices and pursuant to business needs of the Borrower and its Subsidiaries,
PROVIDED no Default under section 10.1(a) or Event of Default has occurred and
be continuing at the time any such loan or advance is made;
(j) intercompany loans and advances made after the Closing Date by the
Borrower or any Domestic Subsidiary to any Foreign Subsidiary necessary in the
ordinary course of business consistent with past practices and pursuant to
business needs of the Borrower and its Subsidiaries, PROVIDED no Default under
section 10.1(a) or Event of Default has occurred and be continuing at the time
any such loan or advance is made;
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(k) the Acquisitions permitted by section 9.2; and loans, advances and
investments of any Person which are outstanding at the time such Person becomes
a Subsidiary of the Borrower as a result of an Acquisition permitted by section
9.2, but not any increase in the amount thereof;
(l) any unsecured Guaranty Obligation incurred by the Borrower or any
Subsidiary with respect to (i) Indebtedness of a Wholly-Owned Subsidiary of the
Borrower which is permitted under section 9.4 without restriction upon the
ability of the Borrower or any Subsidiary to guarantee the same, or (ii) other
obligations of a Wholly-Owned Subsidiary of the Borrower which are not
prohibited by this Agreement;
(m) advances to any supplier who is not an Affiliate, consisting of
prepayments for raw materials purchased for consumption or processing in the
ordinary course of business and pursuant to arrangements designed to assure an
adequate supply of such raw materials;
(n) any other loans, advances, investments (whether in the form of cash or
contribution of property, and if in the form of a contribution of property, such
property shall be valued for purposes of this clause at the fair value thereof
as reasonably determined by the Borrower) and Guaranty Obligations, in or to or
for the benefit of, any corporation, partnership, limited liability company,
joint venture or other business entity, which is not itself a Subsidiary of the
Borrower or owned or controlled by any director, officer or employee of the
Borrower or any of its Subsidiaries, not otherwise permitted by the foregoing
clauses, made after the Closing Date (such loans, advances and investments and
Guaranty Obligations, collectively, "BASKET INVESTMENTS AND GUARANTEES"), shall
be permitted to be incurred if (i) no Event of Default shall have occurred and
be continuing, or would result therefrom, and (ii) the aggregate cumulative
amount of such Basket Investments and Guarantees (taking into account any
repayments of loans or advances), does not exceed $25,000,000.
9.6. DIVIDENDS AND OTHER RESTRICTED PAYMENTS. The Borrower will not, and
will not permit any of its Subsidiaries to, declare or make, or agree to pay or
make, directly or indirectly, any Restricted Payment, EXCEPT:
(a) the Borrower may declare and pay or make dividends or other
distributions with respect to any class of its capital stock which are payable
solely in additional shares of its common stock (or warrants, options or other
rights to acquire additional shares of its common stock);
(b) any Subsidiary of the Borrower may declare and pay or make dividends or
distributions ratably with respect to its capital stock;
(c) the Borrower may make Restricted Payments pursuant to and in accordance
with its existing stock option, stock purchase and other benefit plans of
general application to management, directors or other employees of the Borrower
and its Subsidiaries;
(d) the Borrower may, during any fiscal year, declare and pay cash
dividends on its common stock, if immediately prior to and immediately after
giving effect to such action (A) no Default under section 10.1(a) or Event of
Default shall have occurred and be continuing, (B) the Borrower shall be in
compliance with sections 9.7 and 9.8, after giving pro forma effect to such
action, and (C) the aggregate amount so expended during such fiscal year is not
in excess of the greater of (x) $15,000,000, or (y) 25% of the Borrower's
year-to-date Consolidated Net Income (if positive) for the portion of the
current fiscal year ending on the last day of the month preceding the date of
payment;
(e) the Borrower may, during any fiscal year, repurchase shares of its
common stock in open market transactions or privately negotiated transactions,
for cash consideration and for use in satisfying current and reasonably
projected stock option and similar exercises by employees and/or directors under
stock option, stock grant, stock purchase and similar plans, if immediately
prior to and immediately after giving effect to such action (A) no Default under
section 10.1(a) or Event of Default shall have occurred and be continuing, and
(B) the Borrower shall be in compliance with sections 9.8 and 9.9, after giving
pro forma effect to such action.
9.7. CONSOLIDATED LEVERAGE RATIO. The Borrower will not on the last day of
any Testing Period indicated below permit the ratio of (i) the amount of its
Consolidated Total Debt at such time to (ii) its Consolidated
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EBITDA for its Testing Period most recently ended (the "LEVERAGE RATIO"), to
exceed the ratio specified below for any Testing Period:
TESTING PERIOD RATIO
-------------- ------------
Testing Period ended September 30, 2005 4.00 to 1.00
Testing Period ended December 31, 2005 4.00 to 1.00
Testing Period ended March 31, 2006 4.00 to 1.00
Testing Period ended June 30, 2006 4.00 to 1.00
Testing Period ended September 30, 2006 4.00 to 1.00
Testing Period ended December 31, 2006 and
any Testing Period thereafter 3.50 to 1.00
9.8. CASH FLOW COVERAGE RATIO. The Borrower will not permit its Cash Flow
Coverage Ratio for any Testing Period to be less than 1.50 to 1.00.
9.9. LIMITATION ON CERTAIN RESTRICTIVE AGREEMENTS. The Borrower will not,
and will not permit any of its Subsidiaries to, directly or indirectly, enter
into, incur or permit to exist or become effective, any "negative pledge"
covenant or other agreement, restriction or arrangement that prohibits,
restricts or imposes any condition upon (a) the ability of the Borrower or any
Subsidiary to create, incur or suffer to exist any Lien upon any of its property
or assets as security for Indebtedness, or (b) the ability of any such
Subsidiary to pay dividends or make any other distributions on its capital stock
or any other interest or participation in its profits owned by the Borrower or
any Subsidiary of the Borrower, or pay any Indebtedness owed to the Borrower or
a Subsidiary of the Borrower, or to make loans or advances to the Borrower or
any of the Borrower's other Subsidiaries, or transfer any of its property or
assets to the Borrower or any of the Borrower's other Subsidiaries, EXCEPT for
such restrictions existing under or by reason of (i) applicable law, (ii) this
Agreement and the other Credit Documents, (iii) customary provisions restricting
subletting or assignment of any lease governing a leasehold interest, (iv)
customary provisions restricting assignment of any licensing agreement entered
into in the ordinary course of business, (v) customary provisions restricting
the transfer or further encumbering of assets subject to Liens permitted under
section 9.3(b) or 9.3(c), (vi) restrictions contained in the Existing
Indebtedness Agreements as in effect on the Effective Date (and any similar
restrictions contained in any agreement governing any refinancing or refunding
thereof not prohibited by this Agreement), (vii) customary restrictions
affecting only a Subsidiary of the Borrower under any agreement or instrument
governing any of the Indebtedness of a Subsidiary permitted pursuant to 9.4,
(viii) restrictions affecting any Foreign Subsidiary of the Borrower under any
agreement or instrument governing any Indebtedness of such Foreign Subsidiary
permitted pursuant to 9.4, and customary restrictions contained in "comfort"
letters and guarantees of any such Indebtedness, (ix) any document relating to
Indebtedness secured by a Lien permitted by section 9.3, insofar as the
provisions thereof limit grants of junior liens on the assets securing such
Indebtedness, and (x) any Operating Lease or Capital Lease, insofar as the
provisions thereof limit grants of a security interest in, or other assignments
of, the related leasehold interest to any other Person.
9.10. PREPAYMENTS AND REFINANCINGS OF OTHER DEBT, ETC. The Borrower will
not, and will not permit any of its Subsidiaries to, make (or give any notice in
respect thereof) any voluntary or optional payment or prepayment or redemption
or acquisition for value of (including, without limitation, by way of depositing
with the trustee with respect thereto money or securities before due for the
purpose of paying when due) or exchange of, or refinance or refund, any
Indebtedness of the Borrower or its Subsidiaries which has an outstanding
principal balance (or Capitalized Lease Obligation, in the case of a Capital
Lease, or present value, based on the implicit interest rate, in the case of a
Synthetic Lease) greater than $1,000,000 (other than the Obligations and
intercompany loans and advances among the Borrower and its Subsidiaries);
PROVIDED that (i) subject to the provisions of section 9.13, the Borrower or any
Subsidiary may refinance or refund any such Indebtedness if the aggregate
principal amount thereof (or Capitalized Lease Obligation, in the case of a
Capital Lease, or present value, based on the implicit interest rate, in the
case of a Synthetic Lease) is not increased and the weighted average life to
maturity thereof (computed in accordance with standard financial practice) is
not reduced by more than 10%, (ii) the Borrower may
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make a prepayment with respect to obligations under the Aircraft Lease in
connection with the termination thereof; (iii) OMG Kokkola Chemicals Oy may
prepay all or any portion of the promissory note dated November 1, 2004 payable
to Sampo Bank in a principal amount not to exceed $18,687,000 (together with
interest due thereon) (iv) the Borrower may make voluntary or optional
redemptions of, or may acquire for value and must subsequently retire) its
Public Notes provided that (A) at the time thereof and after giving effect
thereto, the Borrower would be in compliance with sections 9.7 and 9.8 and no
Event of Default shall have occurred and be continuing or result therefrom, and
(B) after giving effect to any such redemption, the Unutilized Total Revolving
Commitment would be greater than or equal to $25,000,000; and (v) the Borrower
and its Subsidiaries may make other voluntary or optional payments or
prepayments or redemptions or acquisitions for value of any other Indebtedness
of the Borrower or its Subsidiaries in an amount not to exceed $25,000,000 in
the aggregate during any fiscal year of the Borrower.
9.11. TRANSACTIONS WITH AFFILIATES. The Borrower will not, and will not
permit any Subsidiary to, enter into any transaction or series of transactions
with any Affiliate (other than, in the case of the Borrower, any Subsidiary, and
in the case of a Subsidiary, the Borrower or another Subsidiary) other than in
the ordinary course of business of and pursuant to the reasonable requirements
of the Borrower's or such Subsidiary's business and upon fair and reasonable
terms no less favorable to the Borrower or such Subsidiary than would obtain in
a comparable arm's-length transaction with a Person other than an Affiliate,
EXCEPT (i) sales of goods to an Affiliate for use or distribution outside the
United States which in the good faith judgment of the Borrower complies with any
applicable legal requirements of the Code, or (ii) agreements and transactions
with and payments to officers, directors and shareholders which are either (A)
entered into in the ordinary course of business and not prohibited by any of the
provisions of this Agreement, or (B) entered into outside the ordinary course of
business, approved by the directors or shareholders of the Borrower, and not
prohibited by any of the provisions of this Agreement.
9.12. PLAN TERMINATIONS, MINIMUM FUNDING, ETC. The Borrower will not, and
will not permit any ERISA Affiliate to, (i) terminate any Plan or Plans so as to
result in liability of the Borrower or any ERISA Affiliate to the PBGC in excess
of, in the aggregate, $5,000,000, (ii) permit to exist one or more events or
conditions which reasonably present a material risk of the termination by the
PBGC of any Plan or Plans with respect to which the Borrower or any ERISA
Affiliate would, in the event of such termination, incur liability to the PBGC
in excess of such amount in the aggregate, or (iii) fail to comply with the
minimum funding standards of ERISA and the Code with respect to any Plan.
9.13. AMENDMENTS TO MATERIAL AGREEMENTS. Following the Closing Date, the
Borrower will not enter into or permit any amendment to, or modification or
change of, any Public Notes Document as in effect on the Closing Date, if such
amendment, modification or change would be adverse to the interests of the
Lenders UNLESS, prior to the effectiveness thereof, such amendment, modification
or change has been approved in writing by the Administrative Agent, acting on
instructions from the Required Lenders.
9.14. ANTI-TERRORISM LAWS. Neither the Borrower nor any of its Subsidiaries
shall be subject to or in violation of any law, regulation, or list of any
government agency (including, without limitation, the U.S. Office of Foreign
Asset Control list, Executive Order No. 13224 or the USA Patriot Act) that
prohibits or limits the conduct of business with or the receiving of funds,
goods or services to or for the benefit of certain Persons specified therein or
that prohibits or limits any Lender or Letter of Credit Issuer from making any
advance or extension of credit to the Borrower or from otherwise conducting
business with the Borrower.
SECTION 10. EVENTS OF DEFAULT
10.1. EVENTS OF DEFAULT. Any of the following specified events shall
constitute an Event of Default (each an "EVENT OF DEFAULT"):
(A) PAYMENTS: the Borrower shall (i) default in the payment when due
(whether at the Maturity Date, on a date fixed for a Scheduled Repayment, on a
date on which a required prepayment is to be made, upon acceleration or
otherwise) of any principal of the Loans or any reimbursement obligation in
respect of any Unpaid Drawing; or (ii) default, and such default shall continue
for five or more days, in the payment when due of any interest on the Loans or
any Fees or any other amounts owing hereunder or under any other Credit
Document; or
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(B) REPRESENTATIONS, ETC.: any representation, warranty or statement made
by the Borrower or any other Credit Party herein or in any other Credit Document
or in any statement or certificate delivered or required to be delivered
pursuant hereto or thereto shall prove to be untrue in any material respect on
the date as of which made or deemed made; or
(C) CERTAIN COVENANTS: the Borrower shall default in the due performance or
observance by it of any term, covenant or agreement contained in section 8.11,
8.12(b) or 8.16, or sections 9.2 through 9.9, inclusive, of this Agreement; or
(D) OTHER COVENANTS: the Borrower shall default in the due performance or
observance by it of any term, covenant or agreement contained in this Agreement
or any other Credit Document, other than those referred to in section 10.1(a) or
(b) or (c) above, and such default is not remedied within 30 days after the
earlier of (i) an officer of the Borrower obtaining actual knowledge of such
default and (ii) the Borrower receiving written notice of such default from the
Administrative Agent or the Required Lenders (any such notice to be identified
as a "notice of default" and to refer specifically to this paragraph); or
(E) CROSS DEFAULT UNDER OTHER AGREEMENTS: the Borrower or any of its
Subsidiaries shall (i) default in any payment with respect to any Indebtedness
(other than the Obligations) owed to any Lender, or having an aggregate unpaid
principal amount (or Capitalized Lease Obligation, in the case of a Synthetic
Lease, or present value, based on the implicit interest rate, in the case of a
Synthetic Lease) of $10,000,000 or greater, and such default shall continue
after the applicable grace period, if any, specified in the agreement or
instrument relating to such Indebtedness or (ii) default in the observance or
performance of any agreement or condition relating to any such Indebtedness or
contained in any instrument or agreement evidencing, securing or relating
thereto (and all grace periods applicable to such observance, performance or
condition shall have expired), or any other event shall occur or condition
exist, the effect of which default or other event or condition is to cause, or
to permit the holder or holders of such Indebtedness (or a trustee or agent on
behalf of such holder or holders) to cause any such Indebtedness to become due
prior to its stated maturity; or any such Indebtedness of the Borrower or any of
its Subsidiaries shall be declared to be due and payable, or shall be required
to be prepaid (other than by a regularly scheduled required prepayment or
redemption, prior to the stated maturity thereof); or (iii) without limitation
of the foregoing clauses, the Borrower or any of its Subsidiaries shall default
in any payment obligation under a Designated Hedge Agreement, and such default
shall continue after the applicable grace period, if any, specified in such
Designated Hedge Agreement or any other agreement or instrument relating
thereto; or
(F) OTHER CREDIT DOCUMENTS: the Subsidiary Guaranty or any Security
Document (once executed and delivered) shall cease for any reason (other than
termination in accordance with its terms) to be in full force and effect; or any
Credit Party shall default in any payment obligation thereunder; or any Credit
Party shall default in any material respect in the due performance and
observance of any other obligation thereunder and such default shall continue
unremedied for a period of at least 30 days after notice by the Administrative
Agent or the Required Lenders; or any Credit Party shall (or seek to) disaffirm
or otherwise limit its obligations thereunder otherwise than in strict
compliance with the terms thereof; or
(G) JUDGMENTS: one or more judgments, orders or decrees shall be entered
against the Borrower and/or any of its Subsidiaries involving a liability (other
than a liability covered by insurance, as to which the carrier has adequate
claims paying ability and has not effectively reserved its rights) of $5,000,000
or more in the aggregate for all such judgments, orders and decrees for the
Borrower and its Subsidiaries, and any such judgments or orders or decrees shall
not have been vacated, discharged or stayed or bonded pending appeal within 30
days (or such longer period, not in excess of 60 days, during which enforcement
thereof, and the filing of any judgment lien, is effectively stayed or
prohibited) from the entry thereof; or
(H) BANKRUPTCY, ETC.: any of the following shall occur:
(i) the Borrower, any of its Material Subsidiaries or any other Credit
Party (the Borrower and each of such other Persons, each a "PRINCIPAL
PARTY") shall commence a voluntary case concerning itself under Title 11 of
the United States Code entitled "Bankruptcy," as now or hereafter in
effect, or any successor thereto, or any other similar laws in other
jurisdictions (the "BANKRUPTCY CODE"); or
69
(ii) an involuntary case is commenced against any Principal Party
under the Bankruptcy Code and the petition is not controverted within 10
days, or is not dismissed within 60 days, after commencement of the case;
or
(iii) a custodian (as defined in the Bankruptcy Code) is appointed
for, or takes charge of, all or substantially all of the property of any
Principal Party; or
(iv) any Principal Party commences (including by way of applying for
or consenting to the appointment of, or the taking of possession by, a
rehabilitator, receiver, custodian, trustee, conservator or liquidator
(collectively, a "CONSERVATOR") of itself or all or any substantial portion
of its property) any other proceeding under any reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution,
insolvency, liquidation, rehabilitation, conservatorship or similar law of
any jurisdiction whether now or hereafter in effect relating to such
Principal Party; or
(v) any such proceeding is commenced against any Principal Party to
the extent such proceeding is consented by such Person or remains
undismissed for a period of 60 days; or
(vi) any Principal Party is adjudicated insolvent or bankrupt; or
(vii) any order of relief or other order approving any such case or
proceeding is entered; or
(viii) any Principal Party suffers any appointment of any conservator
or the like for it or any substantial part of its property which continues
undischarged or unstayed for a period of 60 days; or
(ix) any Principal Party makes a general assignment for the benefit of
creditors; or
(x) any corporate (or similar organizational) action is taken by any
Principal Party for the purpose of effecting any of the foregoing; or
(I) ERISA: (i) any of the events described in clauses (i) through (viii) of
section 8.1(f) shall have occurred; or (ii) there shall result from any such
event or events the imposition of a lien, the granting of a security interest,
or a liability or a material risk of incurring a liability; and (iii) any such
event or events or any such lien, security interest or liability, individually,
and/or in the aggregate, in the opinion of the Required Lenders, has had, or
could reasonably be expected to have, a Material Adverse Effect.
10.2. ACCELERATION, ETC. Upon the occurrence of any Event of Default, and
at any time thereafter, if any Event of Default shall then be continuing, the
Administrative Agent shall, upon the written request of the Required Lenders, by
written notice to the Borrower, take any or all of the following actions,
without prejudice to the rights of the Administrative Agent, the Collateral
Agent or any Lender to enforce its claims against the Borrower or any other
Credit Party in any manner permitted under applicable law:
(a) declare the Total Revolving Commitment terminated, whereupon the
Commitment of each Lender shall forthwith terminate immediately without any
other notice of any kind;
(b) declare the principal of and any accrued interest in respect of all
Loans, all Unpaid Drawings and all other Obligations owing hereunder and under
the other Credit Documents, to be, whereupon the same shall become, forthwith
due and payable without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by the Borrower;
(c) terminate any Letter of Credit which may be terminated in accordance
with its terms;
(d) direct the Borrower to pay (and the Borrower hereby agrees that on
receipt of such notice or upon the occurrence of an Event of Default with
respect to the Borrower under section 10.1(h), it will pay) to the Collateral
Agent an amount of cash equal to the aggregate Stated Amount of all Letters of
Credit then outstanding
70
(such amount to be held as security for the Borrower's and any other Letter of
Credit Obligor's reimbursement obligations in respect thereof); and/or
(e) exercise any other right or remedy available under any of the Credit
Documents or applicable law;
PROVIDED that, if an Event of Default specified in section 10.1(h) shall occur
with respect to the Borrower, the result which would occur upon the giving of
written notice by the Administrative Agent as specified in clauses (a) and/or
(b) above shall occur automatically without the giving of any such notice.
10.3. APPLICATION OF LIQUIDATION PROCEEDS. All monies received by the
Administrative Agent, the Collateral Agent or any Lender from the exercise of
remedies hereunder or under the other Credit Documents or under any other
documents relating to this Agreement shall, unless otherwise required by the
terms of the other Credit Documents or by applicable law, be applied as follows:
(I) FIRST, to the payment of all expenses (to the extent not otherwise
paid by the Borrower or any of the other Credit Parties) incurred by the
Administrative Agent and the Lenders in connection with the exercise of
such remedies, including, without limitation, all reasonable costs and
expenses of collection, reasonable documented attorneys' fees, court costs
and any foreclosure expenses;
(II) SECOND, to the payment PRO RATA of interest then accrued on the
outstanding Loans;
(III) THIRD, to the payment PRO RATA of any fees then accrued and
payable to the Administrative Agent, any Letter of Credit Issuer or any
Lender under this Agreement in respect of the Loans or the Letter of Credit
Outstandings;
(IV) FOURTH, to the payment PRO RATA of (A) the principal balance then
owing on the outstanding Loans, (B) the settlement and termination
liabilities, fees and premiums then due under Designated Hedge Agreements
to creditors of the Borrower or any Subsidiary, subject to confirmation by
the Administrative Agent of any calculations of termination or other
payment amounts being made in accordance with normal industry practice, and
(C) the Stated Amount of the Letter of Credit Outstandings (to be held and
applied by the Collateral Agent as security for the reimbursement
obligations in respect thereof);
(V) FIFTH, to the payment to the Lenders of any amounts then accrued
and unpaid under sections 2.9, 2.10, 3.5 and 5.4 hereof, and if such
proceeds are insufficient to pay such amounts in full, to the payment of
such amounts PRO RATA;
(VI) SIXTH, to the payment PRO RATA of all other amounts owed by the
Borrower to the Administrative Agent, to any Letter of Credit Issuer or any
Lender under this Agreement or any other Credit Document, and to any
counterparties under Designated Hedge Agreements of the Borrower and its
Subsidiaries, and if such proceeds are insufficient to pay such amounts in
full, to the payment of such amounts PRO RATA; and
(VII) FINALLY, any remaining surplus after all of the Obligations have
been paid in full, to the Borrower or to whomsoever shall be lawfully
entitled thereto.
SECTION 11. THE ADMINISTRATIVE AGENT
11.1. APPOINTMENT. Each Lender hereby irrevocably designates and appoints
NCB as Administrative Agent (such term to include, for the purposes of this
section 11, NCB acting as Collateral Agent) to act as specified herein and in
the other Credit Documents, and each such Lender hereby irrevocably authorizes
NCB as the Administrative Agent for such Lender, to take such action on its
behalf under the provisions of this Agreement and the other Credit Documents and
to exercise such powers and perform such duties as are expressly delegated to
the Administrative Agent by the terms of this Agreement and the other Credit
Documents, together with such other powers as are reasonably incidental thereto.
The Administrative Agent agrees to act as such upon the express
71
conditions contained in this section 11. Notwithstanding any provision to the
contrary elsewhere in this Agreement, the Administrative Agent shall not have
any duties or responsibilities, except those expressly set forth herein or in
the other Credit Documents, nor any fiduciary relationship with any Lender, and
no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or otherwise exist against the
Administrative Agent. The provisions of this section 11 are solely for the
benefit of the Administrative Agent, and the Lenders, and the Borrower and its
Subsidiaries shall not have any rights as a third party beneficiary of any of
the provisions hereof. In performing its functions and duties under this
Agreement, the Administrative Agent shall act solely as agent of the Lenders and
does not assume and shall not be deemed to have assumed any obligation or
relationship of agency or trust with or for the Borrower or any of its
Subsidiaries.
11.2. DELEGATION OF DUTIES. The Administrative Agent may execute any of its
duties under this Agreement or any other Credit Document by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Administrative Agent shall not be
responsible for the negligence or misconduct of any agents or attorneys-in-fact
selected by it with reasonable care except to the extent otherwise required by
section 11.3.
11.3. EXCULPATORY PROVISIONS. Neither the Administrative Agent nor any of
its respective officers, directors, employees, agents, attorneys-in-fact or
affiliates shall be (i) liable for any action lawfully taken or omitted to be
taken by it or such Person under or in connection with this Agreement (except
for its or such Person's own gross negligence or willful misconduct) or (ii)
responsible in any manner to any of the Lenders for any recitals, statements,
representations or warranties made by the Borrower or of its Subsidiaries or any
of their respective officers contained in this Agreement, any other Credit
Document or in any certificate, report, statement or other document referred to
or provided for in, or received by the Administrative Agent under or in
connection with, this Agreement or any other Credit Document or for any failure
of the Borrower or any Subsidiary of the Borrower or any of their respective
officers to perform its obligations hereunder or thereunder. The Administrative
Agent shall not be under any obligation to any Lender to ascertain or to inquire
as to the observance or performance of any of the agreements contained in, or
conditions of, this Agreement, or to inspect the properties, books or records of
the Borrower or any of its Subsidiaries. The Administrative Agent shall not be
responsible to any Lender for the effectiveness, genuineness, validity,
enforceability, collectibility or sufficiency of this Agreement or any Credit
Document or for any representations, warranties, recitals or statements made
herein or therein or made in any written or oral statement or in any financial
or other statements, instruments, reports, certificates or any other documents
in connection herewith or therewith furnished or made by the Administrative
Agent to the Lenders or by or on behalf of the Borrower or any of its
Subsidiaries to the Administrative Agent or any Lender or be required to
ascertain or inquire as to the performance or observance of any of the terms,
conditions, provisions, covenants or agreements contained herein or therein or
as to the use of the proceeds of the Loans or of the existence or possible
existence of any Default or Event of Default.
11.4. RELIANCE BY ADMINISTRATIVE AGENT. The Administrative Agent shall be
entitled to rely, and shall be fully protected in relying, upon any note,
writing, resolution, notice, consent, certificate, affidavit, letter, cablegram,
telegram, facsimile transmission, telex or teletype message, statement, order or
other document or conversation believed by it, in good faith, to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons
and upon advice and statements of legal counsel (including, without limitation,
counsel to the Borrower or any of its Subsidiaries), independent accountants and
other experts selected by the Administrative Agent. The Administrative Agent
shall be fully justified in failing or refusing to take any action under this
Agreement or any other Credit Document unless it shall first receive such advice
or concurrence of the Required Lenders as it deems appropriate or it shall first
be indemnified to its satisfaction by the Lenders against any and all liability
and expense which may be incurred by it by reason of taking or continuing to
take any such action. The Administrative Agent shall in all cases be fully
protected in acting, or in refraining from acting, under this Agreement and the
other Credit Documents in accordance with a request of the Required Lenders (or
all of the Lenders, or all of the Lenders (other than any Defaulting Lender), as
applicable, as to any matter which, pursuant to section 12.12, can only be
effectuated with the consent of all Lenders, or all Lenders (other than any
Defaulting Lender), as the case may be), and such request and any action taken
or failure to act pursuant thereto shall be binding upon all the Lenders.
11.5. NOTICE OF DEFAULT. The Administrative Agent shall not be deemed to
have knowledge or notice of the occurrence of any Default or Event of Default
hereunder unless the Administrative Agent has received notice
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from a Lender or the Borrower referring to this Agreement, describing such
Default or Event of Default and stating that such notice is a "notice of
default". In the event that the Administrative Agent receives such a notice, the
Administrative Agent shall give prompt notice thereof to the Lenders. The
Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Required Lenders,
PROVIDED that unless and until the Administrative Agent shall have received such
directions, the Administrative Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such Default or
Event of Default as it shall deem advisable in the best interests of the
Lenders.
11.6. NON-RELIANCE. Each Lender expressly acknowledges that neither the
Administrative Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact or Affiliates have made any representations or warranties to
it and that no act by the Administrative Agent hereinafter taken, including any
review of the affairs of the Borrower or any of its Subsidiaries, shall be
deemed to constitute any representation or warranty by the Administrative Agent
to any Lender. Each Lender represents to the Administrative Agent that it has,
independently and without reliance upon the Administrative Agent, or any other
Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
assets, operations, property, financial and other conditions, prospects and
creditworthiness of the Borrower and its Subsidiaries and made its own decision
to make its Loans hereunder and enter into this Agreement. Each Lender also
represents that it will, independently and without reliance upon the
Administrative Agent, or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Agreement, and to make such investigation as it deems necessary to inform
itself as to the business, assets, operations, property, financial and other
conditions, prospects and creditworthiness of the Borrower and its Subsidiaries.
Except as expressly stated herein, the Administrative Agent shall not have any
duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, assets, property, financial and
other conditions, prospects or creditworthiness of the Borrower or any of its
Subsidiaries which may come into the possession of the Administrative Agent or
any of its officers, directors, employees, agents, attorneys-in-fact or
Affiliates.
11.7. INDEMNIFICATION. The Lenders agree to indemnify the Administrative
Agent in its capacity as such ratably according to their respective Loans and
Percentages of the Unutilized Total Commitment, from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, reasonable expenses or disbursements of any kind whatsoever which may at
any time (including, without limitation, at any time following the payment of
the Obligations) be imposed on, incurred by or asserted against the
Administrative Agent in its capacity as such in any way relating to or arising
out of this Agreement or any other Credit Document, or any documents
contemplated by or referred to herein or the transactions contemplated hereby or
any action taken or omitted to be taken by the Administrative Agent under or in
connection with any of the foregoing, but only to the extent that any of the
foregoing is not paid by the Borrower, PROVIDED that no Lender shall be liable
to the Administrative Agent for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements to the extent resulting from the Administrative
Agent's gross negligence or willful misconduct. If any indemnity furnished to
the Administrative Agent for any purpose shall, in the opinion of the
Administrative Agent, be insufficient or become impaired, the Administrative
Agent may call for additional indemnity and cease, or not commence, to do the
acts indemnified against until such additional indemnity is furnished. The
agreements in this section 11.7 shall survive the payment of all Obligations.
11.8. THE ADMINISTRATIVE AGENT IN INDIVIDUAL CAPACITY. The Administrative
Agent and its Affiliates may make loans to, accept deposits from and generally
engage in any kind of business with the Borrower, its Subsidiaries and their
Affiliates as though not acting as Administrative Agent hereunder. With respect
to the Loans made by it and all Obligations owing to it, the Administrative
Agent shall have the same rights and powers under this Agreement as any Lender
and may exercise the same as though it were not the Administrative Agent, and
the terms "Lender" and "Lenders" shall include the Administrative Agent in its
individual capacity.
11.9. SUCCESSOR ADMINISTRATIVE AGENT. The Administrative Agent may resign
as the Administrative Agent upon not less than 20 Business Days' notice to the
Lenders and the Borrower. The Administrative Agent may be removed as the
Administrative Agent for cause upon not less than 20 Business Days' notice to
the Administrative Agent and the Borrower from the Required Lenders. The
Required Lenders shall appoint from among the Lenders a successor Administrative
Agent for the Lenders, subject to prior approval by the Borrower if no Event of
Default has occurred and is continuing (such approval not to be unreasonably
withheld or delayed), whereupon such
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successor agent shall succeed to the rights, powers and duties of the
Administrative Agent, and the term "Administrative Agent" shall include such
successor agent effective upon its appointment, and the resigning or removed
Administrative Agent's rights, powers and duties as the Administrative Agent
shall be terminated, without any other or further act or deed on the part of
such former Administrative Agent or any of the parties to this Agreement. After
the retiring or removed Administrative Agent's resignation or removal hereunder
as the Administrative Agent, the provisions of this section 11 shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement.
11.10. OTHER AGENTS. Any Lender identified herein as a Co-Agent,
Syndication Agent, Documentation Agent, Managing Agent, Manager, Lead Arranger,
Arranger or any other corresponding title, other than "Administrative Agent" or
"Collateral Agent", shall have no right, power, obligation, liability,
responsibility or duty under this Agreement or any other Credit Document except
those applicable to all Lenders as such and except as specifically provided
herein. Each Lender acknowledges that it has not relied, and will not rely, on
any Lender so identified in deciding to enter into this Agreement or in taking
or not taking any action hereunder.
11.11. NO RELIANCE ON ADMINISTRATIVE AGENT'S CUSTOMER IDENTIFICATION
PROGRAM. Each Lender acknowledges and agrees that neither such Lender, nor any
of its Affiliates, participants or assignees, may rely on the Administrative
Agent to carry out such Lender's, Affiliate's, participant's or assignee's
customer identification program, or other obligations required or imposed under
or pursuant to the USA Patriot Act or the regulations thereunder, including the
regulations contained in 31 CFR 103.121 (as hereafter amended or replaced, the
"CIP Regulations"), or any other Anti-Terrorism Law, including any programs
involving any of the following items relating to or in connection with the
Borrower or any of its Subsidiaries, any of their respective Affiliates or
agents, the Loan Documents or the transactions hereunder: (a) any identity
verification procedures, (b) any record keeping, (c) any comparisons with
government lists, (d) any customer notices or (e) any other procedures required
under the CIP Regulations or such other laws.
11.12. USA PATRIOT ACT. Each Lender or assignee or participant of a Lender
that is not organized under the laws of the United States of America or a state
thereof (and is not excepted from the certification requirement contained in
Section 313 of the USA Patriot Act and the applicable regulations because it is
both (a) an affiliate of a depository institution or foreign bank that maintains
a physical presence in the United States or foreign country, and (b) subject to
supervision by a banking authority regulating such affiliated depository
institution or foreign bank) shall deliver to the Administrative Agent the
certification, or, if applicable, recertification, certifying that such Lender
is not a "shell" and certifying to other matters as required by Section 313 of
the USA Patriot Act and the applicable regulations: (i) within 10 days after the
Closing Date, and (ii) at such other times as are required under the USA Patriot
Act.
SECTION 12. MISCELLANEOUS
12.1. PAYMENT OF EXPENSES ETC. (a) Whether or not the transactions
contemplated hereby are consummated, the Borrower agrees to pay (or reimburse
the Administrative Agent, the Collateral Agent, the Syndication Agent, the Book
Running Manager, and the Lead Arranger for) all reasonable out-of-pocket costs
and expenses of the Administrative Agent, the Collateral Agent, the Syndication
Agent, the Book Running Manager, and the Lead Arranger in connection with the
negotiation, preparation, execution and delivery of the Credit Documents and the
documents and instruments referred to therein, including, without limitation,
the reasonable fees and disbursements of Xxxxx Day, special counsel to the
Administrative Agent.
(b) The Borrower agrees to pay (or reimburse the Lead Arranger, Book
Running Manager and Syndication Agent for) all reasonable out-of-pocket costs
and expenses of the Lead Arranger, Book Running Manager and Syndication Agent in
connection with the syndication prior to the Effective Date of the Commitments
of the other Lenders hereunder, including, without limitation, the reasonable
fees and disbursements of internal or special counsel for any of such Persons.
(c) The Borrower agrees to pay (or reimburse the Administrative Agent, the
Lenders and their Affiliates for) all reasonable out-of-pocket costs and
expenses of the Administrative Agent, the Lenders and their Affiliates in
connection with any amendment, waiver or consent relating to any of the Credit
Documents which is
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requested by any Credit Party, including, without limitation, the reasonable
fees and disbursements of Xxxxx Day, special counsel to the Administrative
Agent.
(d) The Borrower agrees to pay (or reimburse the Administrative Agent, the
Lenders and their Affiliates for) all reasonable out-of-pocket costs and
expenses of the Administrative Agent, the Lenders and their Affiliates in
connection with the enforcement of any of the Credit Documents or the other
documents and instruments referred to therein, including, without limitation,
(i) the reasonable fees and disbursements of Xxxxx Day, special counsel to the
Administrative Agent, and (ii) the reasonable fees and disbursements of any
individual counsel to any Lender (including allocated costs of internal
counsel).
(e) Without limitation of the preceding section 12.1(d), in the event of
the bankruptcy, insolvency, rehabilitation or other similar proceeding in
respect of the Borrower or any of its Subsidiaries, the Borrower agrees to pay
all costs of collection and defense, including reasonable attorneys' fees in
connection therewith and in connection with any appellate proceeding or
post-judgment action involved therein, which shall be due and payable together
with all required service or use taxes.
(f) The Borrower agrees to pay and hold the Administrative Agent, the
Collateral Agent and each of the Lenders harmless from and against any and all
present and future stamp and other similar taxes with respect to the foregoing
matters and save each such Agent and each of the Lenders harmless from and
against any and all liabilities with respect to or resulting from any delay or
omission (other than to the extent attributable to any such indemnified Person)
to pay such taxes.
(g) The Borrower agrees to indemnify the Administrative Agent, the
Collateral Agent, the Lead Arranger, the Syndication Agent and the Book Running
Manager, each other Agent, each Lender, and their respective officers,
directors, trustees, employees, representatives, agents, investment advisors and
Affiliates (collectively, the "INDEMNITEES") from and hold each of them harmless
against any and all losses, liabilities, claims, damages or expenses reasonably
incurred by any of them as a result of, or arising out of, or in any way related
to, or by reason of
(i) any investigation, litigation or other proceeding (whether or not
any Lender is a party thereto) related to the entering into and/or
performance of any Credit Document or the use of the proceeds of any Loans
hereunder or the consummation of any transactions contemplated in any
Credit Document, other than any such investigation, litigation or
proceeding arising out of transactions solely between any of the Lenders or
the Administrative Agent, transactions solely involving the assignment by a
Lender of all or a portion of its Loans and Commitments, or the granting of
participations therein, as provided in this Agreement, or arising solely
out of any examination of a Lender by any regulatory or other governmental
authority having jurisdiction over it, or
(ii) the actual or alleged presence of Hazardous Materials in the air,
surface water or groundwater or on the surface or subsurface of any Real
Property owned, leased or at any time operated by the Borrower or any of
its Subsidiaries, the release, generation, storage, transportation,
handling or disposal of Hazardous Materials at any location, whether or not
owned or operated by the Borrower or any of its Subsidiaries, if the
Borrower or any such Subsidiary could have or is alleged to have any
responsibility in respect thereof, the non-compliance of any such Real
Property with foreign, federal, state and local laws, regulations and
ordinances (including applicable permits thereunder) applicable thereto, or
any Environmental Claim asserted against the Borrower or any of its
Subsidiaries, in respect of any such Real Property,
including, in each case, without limitation, the reasonable documented fees and
disbursements of counsel incurred in connection with any such investigation,
litigation or other proceeding (but excluding any such losses, liabilities,
claims, damages or expenses to the extent incurred by reason of the gross
negligence or willful misconduct of the Person to be indemnified or of any other
Indemnitee who is such Person or an Affiliate of such Person). To the extent
that the undertaking to indemnify, pay or hold harmless any Person set forth in
the preceding sentence may be unenforceable because it is violative of any law
or public policy, the Borrower shall make the maximum contribution to the
payment and satisfaction of each of the indemnified liabilities which is
permissible under applicable law.
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12.2. RIGHT OF SETOFF. In addition to any rights now or hereafter granted
under applicable law or otherwise, and not by way of limitation of any such
rights, upon the occurrence and during the continuance of an Event of Default,
each Lender is hereby authorized at any time or from time to time, without
presentment, demand, protest or other notice of any kind to the Borrower or to
any other Person, any such notice being hereby expressly waived, to set off and
to appropriate and apply any and all deposits (general or special) and any other
Indebtedness at any time held or owing by such Lender (including, without
limitation, by branches, agencies and Affiliates of such Lender wherever
located) to or for the credit or the account of the Borrower against and on
account of the Obligations and liabilities of the Borrower to such Lender under
this Agreement or under any of the other Credit Documents, including, without
limitation, all interests in Obligations of the Borrower purchased by such
Lender pursuant to section 12.4(b), and all other claims of any nature or
description arising out of or connected with this Agreement or any other Credit
Document, irrespective of whether or not such Lender shall have made any demand
hereunder and although said Obligations, liabilities or claims, or any of them,
shall be contingent or unmatured. Each Lender agrees to promptly notify the
Borrower after any such set off and application, PROVIDED, HOWEVER, that the
failure to give such notice shall not affect the validity of such set off and
application.
12.3. NOTICES. Except as otherwise expressly provided herein, all notices
and other communications provided for hereunder shall be in writing (including
telegraphic, telex, facsimile or electronic e-mail transmission or cable
communication) and mailed, telegraphed, telexed, transmitted, cabled or
delivered, if to the Borrower, at 0000 Xxx Xxxxx, 000 Xxxxxx Xxxxxx, Xxxxxxxxx,
Xxxx 00000, attention: Chief Financial Officer (facsimile: (000) 000-0000); if
to any Lender at its address specified for such Lender on Annex I hereto or the
Assignment and Assumption pursuant to which it became a Lender hereunder; if to
the Administrative Agent, at its Notice Office; or at such other address as
shall be designated by any party in a written notice to the other parties
hereto. All such notices and communications shall be mailed, telegraphed,
telexed, transmitted via facsimile or electronic e-mail, cabled or sent by
overnight courier, and shall be effective when received.
12.4. BENEFIT OF AGREEMENT. (A) SUCCESSORS AND ASSIGNS GENERALLY. This
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the parties hereto and their respective successors and assigns, PROVIDED that
the Borrower may not assign or transfer any of its rights or obligations
hereunder without the prior written consent of all the Lenders (other than any
Defaulting Lender) and PROVIDED, FURTHER, that no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an Eligible
Assignee in accordance with the provisions of paragraph (b) of this section,
(ii) by way of participation in accordance with the provisions of paragraph (d)
of this section or (iii) by way of pledge or assignment of a security interest
subject to the restrictions of paragraph (f) of this section (and any other
attempted assignment or transfer by any party hereto shall be null and void).
Nothing in this Agreement, expressed or implied, shall be construed to confer
upon any Person (other than the parties hereto, their respective successors and
assigns permitted hereby, Participants to the extent provided in paragraph (d)
of this section and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.
(B) ASSIGNMENTS. Any Lender may at any time assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing to
it); provided that (i) except in the case of an assignment of the entire
remaining amount of the assigning Lender's Commitment and the Loans at the time
owing to it or in the case of an assignment to a Lender or an Affiliate of a
Lender, the aggregate amount of the Commitment (which for this purpose includes
Loans outstanding thereunder) or, if the applicable Commitment is not then in
effect, the principal outstanding balance of the Loan of the assigning Lender
subject to each such assignment (determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to the Administrative
Agent or, if "Trade Date" is specified in the Assignment and Assumption, as of
the Trade Date) shall not be less than $5,000,000, unless each of the
Administrative Agent and, so long as no Default of Event of Default shall have
occurred and be continuing, the Borrower otherwise consent (each such consent of
the Administrative Agent and the Borrower not to be unreasonably withheld or
delayed); (ii) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender's rights and obligations under
this Agreement with respect to the Loan or the Commitment assigned; (iii) any
assignment must be approved by the Administrative Agent, and, in the case of an
assignment of a Revolving Commitment, the Letter of Credit Issuer, unless the
Person that is the proposed assignee is itself a Lender or an Affiliate of a
Lender; and (iv) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a processing
and recordation fee of $3,500, and
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the Eligible Assignee, if it is not already a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire. Subject to acceptance and
recording thereof by the Administrative Agent pursuant to paragraph (c) of this
section, from and after the effective date specified in each Assignment and
Assumption, the Eligible Assignee thereunder shall be a party to this Agreement
and, to the extent of the interest assigned by such Assignment and Assumption,
have the rights and obligations of a Lender under this Agreement, and the
assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender's rights and obligations under this Agreement, such Lender
shall cease to be a party hereto) but shall continue to be entitled to the
benefits of sections 2.9, 2.10, and 3.5, 5.4 and 12.1 with respect to facts and
circumstances occurring prior to the effective date of such assignment. Any
assignment or transfer by a Lender of rights or obligations under this Agreement
that does not comply with this paragraph shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (d) of this Section.
(C) REGISTER. The Administrative Agent, acting solely for this purpose as
an agent of the Borrower, shall maintain at one of its offices in Cleveland,
Ohio, a copy of each Assignment and Assumption delivered to it and the Lender
Register. The entries in the Lender Register shall be conclusive absent manifest
error, and the Borrower, the Administrative Agent and the Lenders may treat each
Person whose name is recorded in the Lender Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding
notice to the contrary.
(D) PARTICIPATIONS. Any Lender may at any time, without the consent of, or
notice to, the Borrower or the Administrative Agent, sell participations to any
Person (other than a natural person or the Borrower or any of the Borrower's
Affiliates or Subsidiaries) (each, a "Participant") in all or a portion of such
Lender's rights and/or obligations under this Agreement (including all or a
portion of its Commitment and/or the Loans owing to it); provided that (i) such
Lender's obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) the Borrower, the Administrative Agent
and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant, agree
to any amendment, modification or waiver which would (1) extend any date upon
which a scheduled mandatory and automatic reduction in any Commitment in which
such Participant is participating is scheduled to be made, (2) extend any date
upon which a reimbursement obligation in respect of a Letter of Credit or Unpaid
Drawing in which such Participant is participating is scheduled to be made, (3)
extend the final scheduled maturity of the Loans in which such Participant is
participating (it being understood that any waiver of the making of, or the
application of, any mandatory prepayment to such Loans shall not constitute an
extension of the final maturity date thereof), (4) reduce the rate or extend the
time of payment of interest or Fees on any such Loan or Commitment (except in
connection with a waiver of the applicability of any post-default increase in
interest rates), (5) reduce the principal amount of any such outstanding Loan,
(6) increase such Participant's participating interest in any Commitment over
the amount thereof then in effect, (7) release any Credit Party from its
obligations under the Subsidiary Guaranty, except in accordance with the
provisions of the Credit Documents, (8) release all or substantially all of the
Collateral, in each case except in accordance with the provisions of the Credit
Documents, or (9) consent to the assignment or transfer by the Borrower of any
of its rights and obligations under this Agreement. Subject to paragraph (e) of
this section, the Borrower agrees that each Participant shall be entitled to the
benefits of sections 2.9, 2.10, 3.5 and 5.4 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to paragraph (b) of
this section. To the extent permitted by law, each Participant also shall be
entitled to the benefits of section 12.2 as though it were a Lender, provided
such Participant agrees to be subject to Section 12.6.
(E) PAYMENTS, ETC. A Participant shall not be entitled to receive any
greater payment under sections 2.9 and 5.4 than the applicable Lender would have
been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the Borrower's prior written consent. A Participant that would be a Foreign
Lender if it were a Lender shall not be entitled to the benefits of section 5.4
unless the Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of the Borrower, to comply with
sections 5.4(b) and 12.4(g) as though it were a Lender.
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(F) PLEDGES. Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender, including without limitation any pledge or
assignment to secure obligations to a Federal Reserve Bank; provided that no
such pledge or assignment shall release such Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party
hereto.
(G) FOREIGN LENDERS. At the time of each assignment pursuant to section
12.4(b) to a Person which is not already a Lender hereunder and which is a
Foreign Lender, the respective assignee Lender shall provide to the Borrower and
the Administrative Agent the appropriate Internal Revenue Service Forms (and, if
applicable a Section 5.4(b)(ii) Certificate) described in section 5.4(b). To the
extent that an assignment of all or any portion of a Lender's Commitment and
related outstanding Obligations pursuant to this section 12.4(g) would, at the
time of such assignment, result in increased costs under section 2.9 from those
being charged by the respective assigning Lender prior to such assignment, then
the Borrower shall not be obligated to pay such increased costs (although the
Borrower shall be obligated to pay any other increased costs of the type
described above resulting from changes after the date of the respective
assignment).
(H) NO SEC REGISTRATION OR BLUE SKY COMPLIANCE. Notwithstanding any other
provisions of this section 12.4, no transfer or assignment of the interests or
obligations of any Lender hereunder or any grant of participation therein shall
be permitted if such transfer, assignment or grant would require the Borrower to
file a registration statement with the SEC or to qualify the Loans under the
"Blue Sky" laws of any State.
(I) REPRESENTATIONS OF LENDERS. Each Lender initially party to this
Agreement hereby represents, and each Person that became a Lender pursuant to an
assignment permitted by this section 12.4 will, upon its becoming party to this
Agreement, represent that it is a commercial lender, other financial institution
or other "accredited" investor (as defined in SEC Regulation D) which makes or
acquires loans in the ordinary course of its business and that it will make or
acquire Loans for its own account in the ordinary course of such business,
PROVIDED that subject to the preceding sections 12.4(b) and (d), the disposition
of any promissory notes or other evidences of or interests in Indebtedness held
by such Lender shall at all times be within its exclusive control.
(J) GRANTS BY LENDERS TO SPVS. (i) Notwithstanding anything to the contrary
contained herein, any Lender (a "DESIGNATING LENDER") may grant to a special
purpose funding vehicle (an "SPV"), identified as such in writing from time to
time by the Designating Lender to the Administrative Agent, the Borrower and the
other Lenders, the option to provide to the Borrower all or any part of any Loan
that such Designating Lender would otherwise be obligated to make to the
Borrower pursuant to this Agreement; PROVIDED that (i) nothing herein shall
constitute a commitment by any SPV to make any Loan, (ii) if an SPV elects not
to exercise such option or otherwise fails to provide all or any part of such
Loan, the Designating Lender shall be obligated to make such Loan pursuant to
the terms hereof, and (iii) the Designating Lender shall remain liable for any
indemnity or other payment obligation with respect to its Commitment hereunder.
The making of a Loan by an SPV hereunder shall utilize the Commitment of the
Designating Lender to the same extent, and as if, such Loan were made by such
Designating Lender.
(ii) As to any Loans or portion thereof made by it, each SPV shall
have all the rights that a Lender making such Loans or portion thereof
would have had under this Agreement; PROVIDED, HOWEVER, that each SPV shall
have granted to its Designating Lender an irrevocable power of attorney, to
deliver and receive all communications and notices under this Agreement
(and any other Credit Documents) and to exercise on such SPV's behalf, all
of such SPV's voting rights under this Agreement. No additional Note shall
be required to evidence the Loans or portion thereof made by an SPV; and
the related Designating Lender shall be deemed to hold its Note as agent
for such SPV to the extent of the Loans or portion thereof funded by such
SPV. In addition, any payments for the account of any SPV shall be paid to
its Designating Lender as agent for such SPV.
(iii) Each party hereto hereby agrees that no SPV shall be liable for
any indemnity or payment under this Agreement for which a Lender would
otherwise be liable. In furtherance of the foregoing, each party hereto
hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior
indebtedness of any SPV, it will not institute against, or join any other
Person in instituting against,
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such SPV any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings under the laws of the United States or any State
thereof.
(iv) In addition, notwithstanding anything to the contrary contained
in this section 12.4, any SPV may (A) with notice to, but without the prior
written consent of, the Borrower and the Administrative Agent and without
paying any processing fee therefor, assign all or a portion of its
interests in any Loans to the Designating Lender or to any financial
institutions providing liquidity and/or credit support to or for the
account of such SPV to support the funding or maintenance of Loans and (B)
disclose on a confidential basis any non-public information relating to its
Loans to any rating agency, commercial paper dealer or provider of any
surety, guarantee or credit or liquidity enhancements to such SPV. This
section 12.4(j) may not be amended without the written consent of any
Designating Lender affected thereby.
12.5. NO WAIVER: REMEDIES CUMULATIVE. No failure or delay on the part of
the Administrative Agent or any Lender in exercising any right, power or
privilege hereunder or under any other Credit Document and no course of dealing
between the Borrower and the Administrative Agent or any Lender shall operate as
a waiver thereof; nor shall any single or partial exercise of any right, power
or privilege hereunder or under any other Credit Document preclude any other or
further exercise thereof or the exercise of any other right, power or privilege
hereunder or thereunder. No notice to or demand on the Borrower in any case
shall entitle the Borrower to any other or further notice or demand in similar
or other circumstances or constitute a waiver of the rights of the
Administrative Agent or the Lenders to any other or further action in any
circumstances without notice or demand. Without limiting the generality of the
foregoing, the making of a Loan or issuance of a Letter of Credit shall not be
construed as a waiver of any Default or Event of Default, regardless of whether
the Administrative Agent, any Lender or the Letter of Credit Issuer may have had
notice or knowledge of such Default or Event of Default at the time. The rights
and remedies herein expressly provided are cumulative and not exclusive of any
rights or remedies which the Administrative Agent or any Lender would otherwise
have.
12.6. PAYMENTS PRO RATA; SHARING OF SETOFFS, ETC. (a) The Administrative
Agent agrees that promptly after its receipt of each payment from or on behalf
of the Borrower in respect of any Obligations, it shall distribute such payment
to the Lenders (other than any Lender that has expressly waived in writing its
right to receive its PRO RATA share thereof) PRO RATA based upon their
respective shares, if any, of the Obligations with respect to which such payment
was received. As to any such payment received by the Administrative Agent prior
to 1:00 P.M. (local time at the Payment Office) in funds which are immediately
available on such day, the Administrative Agent will use all reasonable efforts
to distribute such payment in immediately available funds on the same day to the
Lenders as aforesaid.
(b) Each of the Lenders agrees that, if it should receive any amount
hereunder (whether by voluntary payment, by realization upon security, by the
exercise of the right of setoff or banker's lien, by counterclaim or cross
action, by the enforcement of any right under the Credit Documents, or
otherwise) which is applicable to the payment of the principal of, or interest
on, the Loans or Fees, of a sum which with respect to the related sum or sums
received by other Lenders is in a greater proportion than the total of such
Obligation then owed and due to such Lender bears to the total of such
Obligation then owed and due to all of the Lenders immediately prior to such
receipt, THEN such Lender receiving such excess payment shall purchase for cash
without recourse or warranty from the other Lenders an interest in the
Obligations to such Lenders in such amount as shall result in a proportional
participation by all of the Lenders in such amount, PROVIDED that (i) if all or
any portion of such excess amount is thereafter recovered from such Lender, such
purchase shall be rescinded and the purchase price restored to the extent of
such recovery, but without interest, and (ii) the provisions of this section
12.6(b) shall not be construed to apply to any payment made by the Borrower
pursuant to and in accordance with the express terms of this Agreement, or any
payment obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Loans or participations in Letters of Credit to any
assignee or Participant pursuant to section 12.4, other than to the Borrower or
any Subsidiary or Affiliate thereof (as to which the provisions of this section
12.6(b) shall apply). The Borrower consents to the foregoing and agrees, to the
extent it may effectively do so under applicable law, that any Lender acquiring
a participation pursuant to the foregoing arrangements may exercise against the
Borrower rights of set-off and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of the Borrower in the amount
of such participation.
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(c) Notwithstanding anything to the contrary contained herein, the
provisions of the preceding sections 12.6(a) and (b) shall be subject to the
express provisions of this Agreement which require, or permit, differing
payments to be made to Lenders which are not Defaulting Lenders, as opposed to
Defaulting Lenders.
(d) If any Lender shall fail to make any payment required to be made by it
to the Administrative Agent pursuant to section 2.4(b) or 3.4(c), then the
Administrative Agent may, in its discretion (notwithstanding any contrary
provision of this Agreement), apply any amounts thereafter received by the
Administrative Agent for the account of such Lender to satisfy such Lender's
obligations to the Administrative Agent under such sections until all such
unsatisfied obligations are fully paid.
12.7. CALCULATIONS: COMPUTATIONS. (a) The financial statements to be
furnished to the Lenders pursuant hereto shall be made and prepared in
accordance with GAAP consistently applied throughout the periods involved
(except as set forth in the notes thereto or as otherwise disclosed in writing
by the Borrower to the Lenders); PROVIDED, that if at any time the computations
determining compliance with section 9 utilize accounting principles different
from those utilized in the financial statements furnished to the Lenders, such
computations shall set forth in reasonable detail a description of the
differences and the effect upon such computations.
(b) All computations of interest on Eurocurrency Loans and Prime Rate Loans
hereunder and all computations of Commitment Fees, Letter of Credit Fees and
other Fees hereunder shall be made on the actual number of days elapsed over a
year of 360 days.
12.8. Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury
Trial. (a) THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE CONSTRUED IN
ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF OHIO, NOTWITHSTANDING
ITS CONFLICTS OF LAWS RULES. TO THE FULLEST EXTENT PERMITTED BY LAW, THE
BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT
THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF OHIO GOVERNS THIS AGREEMENT
OR ANY OF THE OTHER CREDIT DOCUMENTS. Any legal action or proceeding with
respect to this Agreement or any other Credit Document may be brought in the
Court of Common Pleas of Cuyahoga County, Ohio, or of the United States for the
Northern District of Ohio, and, by execution and delivery of this Agreement, the
Borrower hereby irrevocably accepts for itself and in respect of its property,
generally and unconditionally, the jurisdiction of the aforesaid courts. The
Borrower hereby further irrevocably consents to the service of process out of
any of the aforementioned courts in any such action or proceeding by the mailing
of copies thereof by registered or certified mail, postage prepaid, to the
Borrower at its address for notices pursuant to section 12.3, such service to
become effective 30 days after such mailing or at such earlier time as may be
provided under applicable law. Nothing herein shall affect the right of the
Administrative Agent or any Lender to serve process in any other manner
permitted by law or to commence legal proceedings or otherwise proceed against
the Borrower in any other jurisdiction.
(b) The Borrower hereby irrevocably waives any objection which it may now
or hereafter have to the laying of venue of any of the aforesaid actions or
proceedings arising out of or in connection with this Agreement or any other
Credit Document brought in the courts referred to in section 12.8(a) above and
hereby further irrevocably waives and agrees not to plead or claim in any such
court that any such action or proceeding brought in any such court has been
brought in an inconvenient forum.
(c) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL
RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER CREDIT DOCUMENTS
(INCLUDING, WITHOUT LIMITATION, ANY AMENDMENTS, WAIVERS OR OTHER MODIFICATIONS
RELATING TO ANY OF THE FOREGOING), OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY. EACH PARTY HERETO HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS PARAGRAPH.
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12.9. COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each
of which when so executed and delivered shall be an original, but all of which
shall together constitute one and the same agreement. A set of counterparts
executed by all the parties hereto shall be lodged with the Borrower and the
Administrative Agent.
12.10. EFFECTIVENESS; INTEGRATION. This Agreement shall become effective on
the date (the "EFFECTIVE DATE") on which the Borrower and each of the Lenders
shall have signed a copy hereof (whether the same or different copies), and each
shall have delivered the same to the Administrative Agent at the Notice Office
of the Administrative Agent or, in the case of the Lenders, shall have given to
the Administrative Agent telephonic (confirmed in writing), written telex or
facsimile transmission notice (actually received) at such office that the same
has been signed and mailed to it. This Agreement, the other Credit Documents and
any separate letter agreements with respect to fees payable to the
Administrative Agent and/or the Lead Arranger, for its own account and benefit
and/or for the account, benefit of, and distribution to, the Lenders, constitute
the entire contract among the parties relating to the subject matter hereof and
thereof and supersede any and all previous agreements and understandings, oral
or written, relating to the subject matter hereof or thereof.
12.11. HEADINGS DESCRIPTIVE. The headings of the several sections and other
portions of this Agreement are inserted for convenience only and shall not in
any way affect the meaning or construction of any provision of this Agreement.
12.12. AMENDMENT OR WAIVER. (a) Neither this Agreement nor any terms hereof
may be amended, changed, waived or otherwise modified UNLESS such amendment,
change, waiver or other modification is in writing and signed by the Borrower
and the Administrative Agent, and also signed (or consented to in writing) by
the Required Lenders, PROVIDED that
(i) no change, waiver or other modification shall:
(A) increase the Commitment of any Lender hereunder without the
written consent of such Lender, or increase the Total Revolving
Commitment without the consent of each Lender;
(B) extend or postpone any Maturity Date provided for herein
which is applicable to any Loan of any Lender, extend or postpone the
expiration date of any Letter of Credit as to which such Lender is a
LC Participant pursuant to section 12.4 beyond the latest expiration
date for a Letter of Credit provided for herein, or extend or postpone
any scheduled expiration or termination date provided for herein which
is applicable to a Commitment of any Lender, without the written
consent of such Lender;
(C) reduce the principal amount of any Loan made by any Lender,
or reduce the rate or extend the time of payment of, or excuse the
payment of, interest thereon (other than as a result of waiving the
applicability of any post-default increase in interest rates), without
the written consent of such Lender;
(D) reduce the amount of any Unpaid Drawing as to which any
Lender is a LC Participant as provided in section 3.4, or reduce the
rate or extend the time of payment or reimbursement thereof, or excuse
the payment of, interest thereon (other than as a result of waiving
the applicability of any post-default increase in interest rates),
without the written consent of such Lender; or
(E) reduce the rate or extend the time of payment of, or excuse
the payment of, any Fees to which any Lender is entitled hereunder,
without the written consent of such Lender; and
(ii) no change, waiver or other modification termination shall,
without the written consent of each Lender (other than a Defaulting Lender)
affected thereby,
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(A) release any Credit Party from the Subsidiary Guaranty, EXCEPT
in connection with the sale or disposition of any Subsidiary or in
connection with any other transaction permitted by section 9.2(d) or
otherwise disposed of with the consent of the Required Lenders;
(B) release all or substantially all of the Collateral, EXCEPT in
connection with a sale or disposition thereof or in connection with
any other transaction permitted by section 9.2(d) or any transaction
consented to by the Required Lenders;
(C) change the definition of the term "Change of Control" or any
of the provisions of section 5.2(i) which are applicable upon a Change
of Control;
(D) amend, modify or waive any provision of this section 12.12,
or section 10.3, 11.7, 12.6 or any other provision of any of the
Credit Documents pursuant to which the consent or approval of all
Lenders, or a number or specified percentage or other required
grouping of Lenders, is by the terms of such provision explicitly
required;
(E) reduce the percentage specified in, or otherwise modify, the
definition of Required Lenders; or
(F) consent to the assignment or transfer by the Borrower of any
of its rights and obligations under this Agreement.
Any waiver, consent, amendment or other modification with respect to this
Agreement given or made in accordance with this section 12.12 shall be binding
on the parties hereto and their successors and assigns, but shall be effective
only in the specific instance and for the specific purpose for which it was
given or made.
(b) No provision of section 3 may be amended without the consent of (x) any
Letter of Credit Issuer adversely affected thereby or (y) the Administrative
Agent, respectively. No provision of this Agreement affecting only the Swing
Line Lender may be amended without the consent of the Swing Line Lender.
(c) If, in connection with any proposed change, waiver, discharge or
termination of any of the provisions of this Agreement which requires the
consent of all the Lenders, and the consent of the Required Lenders is obtained
but the consent of one or more of such other Lenders whose consent is sought is
not obtained, then the Borrower shall have the right, so long as all
non-consenting Lenders whose individual consent is sought are treated as
described in either clauses (A) or (B) below, to either (A) replace each such
non-consenting Lender or Lenders with one or more replacement Lenders in
accordance with the provisions of section 2.11 so long as at the time of such
replacement, each such replacement Lender consents to the proposed change,
waiver, discharge or termination or (B) terminate each such non-consenting
Lender's Commitments and repay the outstanding Loans of each such non-consenting
Lender in accordance with section 2.11, provided that, unless the Commitments
that are terminated and the Loans that are repaid pursuant to preceding clause
(B) are immediately replaced in full at such time through the addition of new
Lenders or the increase of the Commitments and/or outstanding Loans of existing
Lenders (who in each case must specifically consent thereto), then in the case
of any action pursuant to preceding clause (B) each Lender (determined after
giving effect to the proposed action) shall specifically consent thereto,
PROVIDED FURTHER, that in any event the Borrower shall not have the right to
replace a Lender if, immediately after the termination of such Lender's
Commitment and the repayment of such Lender's Loans, the sum of (i) the
aggregate outstanding principal amount of Revolving Loans PLUS (ii) the
aggregate outstanding principal amount of Swing Line Loans PLUS (iii) the
aggregate amount of Letter of Credit Outstandings, EXCEEDS the Total Revolving
Commitment as then in effect.
(d) Anything in this Agreement to the contrary notwithstanding, no waiver
or modification of any provision of this Agreement that has the effect (either
immediately or at some future time) of enabling the Borrower to satisfy a
condition precedent contained in section 6 to the making of a Loan under a
Facility shall be effective against any Lender with a Commitment under such
Facility, UNLESS the Required Lenders shall have consented in writing to such
waiver or modification.
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(e) The Administrative Agent and the Collateral Agent will not enter into
any amendment, change, waiver, discharge or termination of any of the other
Credit Documents, EXCEPT as specifically provided therein or as authorized as
contemplated by a written request or consent of the Required Lenders (or all of
the Lenders, or all of the Lenders (other than any Defaulting Lender), as
applicable, as to any matter which, pursuant to this section 12.12, can only be
effectuated with the written consent of the Required Lenders, all Lenders, or
all Lenders (other than any Defaulting Lender), as the case may be).
12.13. SURVIVAL OF INDEMNITIES. All indemnities set forth herein including,
without limitation, in section 2.9, 2.10, 3.5, 5.4, 11.7 or 12.1 shall survive
the execution and delivery of this Agreement and the making and repayment of
Loans.
12.14. DOMICILE OF LOANS. Each Lender may transfer and carry its Loans at,
to or for the account of any branch office, subsidiary or affiliate of such
Lender, PROVIDED that the Borrower shall not be responsible for costs arising
under section 2.9 resulting from any such transfer (other than a transfer
pursuant to section 2.11) to the extent not otherwise applicable to such Lender
prior to such transfer.
12.15. CONFIDENTIALITY. (a) Each of the Administrative Agent, each Letter
of Credit Issuer and the Lenders agrees to maintain the confidentiality of the
Confidential Information (as defined below), EXCEPT that Confidential
Information may be disclosed (1) to its and its Affiliates' directors, officers,
employees and agents, including accountants, legal counsel and other advisors
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Confidential Information and
instructed to keep such Confidential Information confidential), (2) to any
direct or indirect contractual counterparty in any swap, hedge or similar
agreement (or to any such contractual counterparty's professional advisor, so
long as such contractual counterparty (or such professional advisor) agrees to
be bound by the provisions of this section 12.15, (3) to the extent requested by
any regulatory authority, (4) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (5) to any other party
to this Agreement, (6) to any other creditor of the Borrower or any other Credit
Party which is a direct or intended beneficiary of any of the Credit Documents,
(7) in connection with the exercise of any remedies hereunder or under any of
the other Credit Documents, or any suit, action or proceeding relating to this
Agreement or any of the other Credit Documents or the enforcement of rights
hereunder or thereunder, (8) subject to an agreement containing provisions
substantially the same as those of this section 12.15, to any assignee of or
participant in, or any prospective assignee of or participant in, any of its
rights or obligations under this Agreement, (9) with the consent of the
Borrower, or (10) to the extent such Confidential Information (i) becomes
publicly available other than as a result of a breach of this section 12.15, or
(ii) becomes available to the Administrative Agent, any Letter of Credit Issuer
or any Lender on a nonconfidential basis from a source other than the Borrower.
(b) For the purposes of this section 12.15, "CONFIDENTIAL INFORMATION"
means all information received from the Borrower relating to the Borrower or its
business, other than any such information that is available to the
Administrative Agent, any Letter of Credit Issuer or any Lender on a
nonconfidential basis prior to disclosure by the Borrower; PROVIDED that, in the
case of information received from the Borrower after the date hereof, such
information is clearly identified at the time of delivery as confidential.
(c) Any Person required to maintain the confidentiality of Confidential
Information as provided in this section 12.15 shall be considered to have
complied with its obligation to do so if such Person has exercised the same
degree of care to maintain the confidentiality of such Confidential Information
as such Person would accord to its own confidential information. The Borrower
hereby agrees that the failure of the Administrative Agent, any Letter of Credit
Issuer or any Lender to comply with the provisions of this section 12.15 shall
not relieve the Borrower, or any other Credit Party, of any of its obligations
under this Agreement or any of the other Credit Documents.
12.16. LENDER REGISTER. The Borrower hereby designates the Administrative
Agent to serve as its agent, solely for purposes of this section 12.16, to
maintain a register (the "LENDER REGISTER") on or in which it will record the
names and addresses of the Lenders, and the Commitments from time to time of
each of the Lenders, the Loans made to the Borrower by each of the Lenders and
each repayment and prepayment in respect of the principal amount of such Loans
of each such Lender. Failure to make any such recordation, or (absent manifest
error) any error in such recordation, shall not affect the Borrower's
obligations in respect of such Loans. With respect to any Lender, the transfer
of the Commitment of such Lender and the rights to the principal of, and
interest on, any Loan
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made pursuant to such Commitment shall not be effective until such transfer is
recorded on the Lender Register maintained by the Administrative Agent with
respect to ownership of such Commitment and Loans and prior to such recordation
all amounts owing to the transferor with respect to such Commitment and Loans
shall remain owing to the transferor. The registration of assignment or transfer
of all or part of any Commitments and Loans shall be recorded by the
Administrative Agent on the Lender Register only upon the acceptance by the
Administrative Agent of a properly executed and delivered Assignment and
Assumption pursuant to section 12.4(b). The Borrower agrees to indemnify the
Administrative Agent from and against any and all losses, claims, damages and
liabilities of whatsoever nature which may be imposed on, asserted against or
incurred by the Administrative Agent in performing its duties under this section
12.16, except to the extent attributable to the gross negligence or willful
misconduct of the Administrative Agent. The Lender Register shall be available
for inspection by the Borrower or any Lender at any reasonable time and from
time to time upon reasonable prior notice.
12.17. LIMITATIONS ON LIABILITY OF THE LETTER OF CREDIT ISSUERS. The
Borrower assumes all risks of the acts or omissions of any beneficiary or
transferee of any Letter of Credit with respect to its use of such Letters of
Credit. Neither any Letter of Credit Issuer nor any of its officers or directors
shall be liable or responsible for: (a) the use which may be made of any Letter
of Credit or any acts or omissions of any beneficiary or transferee in
connection therewith; (b) the validity, sufficiency or genuineness of documents,
or of any endorsement thereon, even if such documents should prove to be in any
or all respects invalid, insufficient, fraudulent or forged; (c) payment by a
Letter of Credit Issuer against presentation of documents that do not comply
with the terms of a Letter of Credit, including failure of any documents to bear
any reference or adequate reference to such Letter of Credit; or (d) any other
circumstances whatsoever in making or failing to make payment under any Letter
of Credit, except that the Borrower (or a Subsidiary which is the account party
in respect of the Letter of Credit in question) shall have a claim against a
Letter of Credit Issuer, and a Letter of Credit Issuer shall be liable to the
Borrower (or such Subsidiary), to the extent of any direct, but not
consequential, damages suffered by the Borrower (or such Subsidiary) which the
Borrower (or such Subsidiary) proves were caused by (i) such Letter of Credit
Issuer's willful misconduct or gross negligence in determining whether documents
presented under a Letter of Credit comply with the terms of such Letter of
Credit or (ii) such Letter of Credit Issuer's willful failure to make lawful
payment under any Letter of Credit after the presentation to it of documentation
strictly complying with the terms and conditions of such Letter of Credit. In
furtherance and not in limitation of the foregoing, a Letter of Credit Issuer
may accept documents that appear on their face to be in order, without
responsibility for further investigation.
12.18. GENERAL LIMITATION OF LIABILITY. No claim may be made by the
Borrower, any Lender, the Administrative Agent, any Letter of Credit Issuer or
any other Person against the Administrative Agent, any Letter of Credit Issuer,
or any other Lender or the Affiliates, directors, officers, employees, attorneys
or agents of any of them for any damages other than actual compensatory damages
in respect of any claim for breach of contract or any other theory of liability
arising out of or related to the transactions contemplated by this Agreement or
any of the other Credit Documents, or any act, omission or event occurring in
connection therewith; and the Borrower, each Lender, the Administrative Agent
and each Letter of Credit Issuer hereby, to the fullest extent permitted under
applicable law, waives, releases and agrees not to xxx or counterclaim upon any
such claim for any special, consequential or punitive damages, whether or not
accrued and whether or not known or suspected to exist in its favor.
12.19. NO DUTY. All attorneys, accountants, appraisers, consultants and
other professional persons (including the firms or other entities on behalf of
which any such Person may act) retained by the Administrative Agent or any
Lender with respect to the transactions contemplated by the Credit Documents
shall have the right to act exclusively in the interest of the Administrative
Agent or such Lender, as the case may be, and shall have no duty of disclosure,
duty of loyalty, duty of care, or other duty or obligation of any type or nature
whatsoever to the Borrower, to any of its Subsidiaries, or to any other Person,
with respect to any matters within the scope of such representation or related
to their activities in connection with such representation. The Borrower agrees,
on behalf of itself and its Subsidiaries, not to assert any claim or
counterclaim against any such persons with regard to such matters, all such
claims and counterclaims, now existing or hereafter arising, whether known or
unknown, foreseen or unforeseeable, being hereby waived, released and forever
discharged.
12.20. LENDERS AND AGENT NOT FIDUCIARY TO BORROWER, ETC. The relationship
among the Borrower and its Subsidiaries, on the one hand, and the Administrative
Agent, each Letter of Credit Issuer and the Lenders, on the other hand, is
solely that of debtor and creditor, and the Administrative Agent, each Letter of
Credit Issuer and
84
the Lenders have no fiduciary or other special relationship with the Borrower
and its Subsidiaries, and no term or provision of any Credit Document, no course
of dealing, no written or oral communication, or other action, shall be
construed so as to deem such relationship to be other than that of debtor and
creditor.
12.21. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations and
warranties herein shall survive the making of Loans and the issuance of Letters
of Credit hereunder, the execution and delivery of this Agreement, the Notes and
the other documents the forms of which are attached as Exhibits hereto, the
issue and delivery of the Notes, any disposition thereof by any holder thereof,
and any investigation made by the Administrative Agent or any Lender or any
other holder of any of the Notes or on its behalf. All statements contained in
any certificate or other document delivered to the Administrative Agent or any
Lender or any holder of any Notes by or on behalf of the Borrower or of its
Subsidiaries pursuant hereto or otherwise specifically for use in connection
with the transactions contemplated hereby shall constitute representations and
warranties by the Borrower hereunder, made as of the respective dates specified
therein or, if no date is specified, as of the respective dates furnished to the
Administrative Agent or any Lender.
12.22. SEVERABILITY. Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability
without affecting the validity, legality and enforceability of the remaining
provisions hereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other jurisdiction.
12.23. INDEPENDENCE OF COVENANTS. All covenants hereunder shall be given
independent effect so that if a particular action, event, condition or
circumstance is not permitted by any of such covenants, the fact that it would
be permitted by an exception to, or would otherwise be within the limitations or
restrictions of, another covenant, shall not avoid the occurrence of a Default
or an Event of Default if such action is taken or event, condition or
circumstance exists.
12.24. JUDGMENT CURRENCY. (a) The Credit Parties' obligations hereunder and
under the other Credit Documents to make payments in Dollars or Alternative
Currency, as the case may be, shall not be discharged or satisfied by any tender
or recovery pursuant to any judgment expressed in or converted into any currency
other than Dollars or Alternative Currency, as the case may be, except to the
extent that such tender or recovery results in the effective receipt by the
Administrative Agent or the applicable Lender of the full amount of Dollars or
Alternative Currency, as the case may be, expressed to be payable to the
Administrative Agent or such Lender under this Agreement or the other Credit
Documents. If, for the purpose of obtaining or enforcing judgment against any
Credit Party in any court or in any jurisdiction, it becomes necessary to
convert into or from any currency other than Dollars or Alternative Currency, as
the case may be, (such other currency being hereinafter referred to as the
"JUDGMENT CURRENCY") an amount due in Dollars, the conversion shall be made at
the equivalent thereof in Dollars or Alternative Currency, as the case may be,
determined as of the Business Day immediately preceding the day on which the
judgment is given (such Business Day being hereinafter referred to as the
"JUDGMENT CURRENCY CONVERSION DATE").
(b) If there is a change in the rate of exchange prevailing between the
Judgment Currency Conversion Date and the date of actual payment of the amount
due, the Borrowers covenant and agree to pay, or cause to be paid, such
additional amounts, if any (but in any event not a lesser amount) as may be
necessary to ensure that the amount paid in the Judgment Currency, when
converted at the rate of exchange prevailing on the date of payment, will
produce the amount of Dollars which could have been purchased with the amount of
Judgment Currency stipulated in the judgment or judicial award at the rate of
exchange prevailing on the Judgment Currency Conversion Date.
(c) For purposes of determining the equivalent in Dollars or Alternative
Currency, as the case may be, for this section, such amount shall include any
premium and costs payable in connection with the conversion into or from the
Judgment Currency.
12.25. INTEREST RATE LIMITATION. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together with
all fees, charges and other amounts which are treated as interest on such Loan
under applicable law (collectively the "CHARGES"), shall exceed the maximum
lawful rate (the
85
"MAXIMUM RATE") which may be contracted for, charged, taken, received or
reserved by the Lender holding such Loan in accordance with applicable law, the
rate of interest payable in respect of such Loan hereunder, together with all
Charges payable in respect thereof, shall be limited to the Maximum Rate and, to
the extent lawful, the interest and Charges that would have been payable in
respect of such Loan but were not payable as a result of the operation of this
section shall be cumulated and the interest and Charges payable to such Lender
in respect of other Loans or periods shall be increased (but not above the
Maximum Rate therefor) until such cumulated amount, together with interest
thereon at the Prime Rate to the date of repayment, shall have been received by
such Lender.
12.26. USA PATRIOT ACT. Each Lender subject to the USA Patriot Act hereby
notifies the Borrower that pursuant to the requirements of the USA Patriot Act,
it is required to obtain, verify and record information that identifies the
Borrower, which information includes the name and address of the Borrower and
other information that will allow such Lender to identify the Borrower in
accordance with the USA Patriot Act.
[The balance of this page is intentionally blank;
the next pages are signature pages.]
86
IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of
this Agreement to be duly executed and delivered as of the date first above
written.
OM GROUP, INC. NATIONAL CITY BANK,
INDIVIDUALLY AS A LENDER, THE SWING
LINE LENDER, THE LETTER OF CREDIT
ISSUER, AND IN ITS CAPACITY AS THE
ADMINISTRATIVE AGENT AND THE
COLLATERAL AGENT, AND THE ARRANGER
BY:
---------------------------------
NAME:
-------------------------------
TITLE:
------------------------------
BY:
---------------------------------
NAME:
-------------------------------
TITLE:
------------------------------
KEYBANK NATIONAL ASSOCIATION,
AS A LENDER
BY:
---------------------------------
NAME:
-------------------------------
TITLE:
------------------------------
SIGNATURE PAGE
TO THE
CREDIT AGREEMENT
FOR OM GROUP, INC.
JPMORGAN CHASE BANK, N.A.,
AS A LENDER
BY:
---------------------------------
NAME:
-------------------------------
TITLE:
------------------------------
SIGNATURE PAGE
TO THE
CREDIT AGREEMENT
FOR OM GROUP, INC.
ANNEX I
INFORMATION AS TO LENDERS AND COMMITMENTS
NAME OF LENDER REVOLVING COMMITMENT
-------------- --------------------
National City Bank $ 40,000,000
Swing Line Commitment: $ 15,000,000
KeyBank National Association $ 30,000,000
JPMorgan Chase Bank, N.A. $ 30,000,000
------------
TOTAL $100,000,000
============
ANNEX II
INFORMATION AS TO SUBSIDIARIES
Percentage of Outstanding
Stock or Other Equity Interest
Owned (Indicating whether
Type of Jurisdiction Where owned by the Borrower of
Name of Subsidiary Organization Organized a specified Subsidiary)
------------------ ------------ ------------------ ------------------------------
ANNEX III
DESCRIPTION OF EXISTING INDEBTEDNESS
ANNEX IV
DESCRIPTION OF EXISTING LIENS
ANNEX V
DESCRIPTION OF EXISTING ADVANCES, LOANS, INVESTMENTS AND GUARANTEES
ANNEX VI
DESCRIPTION OF LETTERS OF CREDIT DEEMED ISSUED UNDER
THE CREDIT AGREEMENT
ANNEX VII
EXISTING HEDGE AGREEMENTS
XX Xxxxxx Xxxxx Bank, N.A. (as successor to Bank One) & OM Group, Inc.
Interest rate swap
Trade date 8/1/03
Notional amount $50MM of 9.25% 12/15/11 bond
MTM $1.2 million
Maturity date 12/15/11 (includes put option at end of year five)
Reverse swap where JPMorgan pays 9.25% and receives 0X XXXXX + 4.10% in arrears
JPMorgan Chase Bank, N.A. (as successor to Bank One) & OM Group, Inc.
Interest rate swap option
Trade date 11/14/03
Notional amount $50MM of 9.25% 12/15/11 bond
MTM $500 thousand
Maturity date 12/15/11
Reverse swap where JPMorgan pays 9.25% and receives 0X XXXXX + 4.3925% in
arrears
EXHIBIT A-1
REVOLVING NOTE
$____________ Cleveland, Ohio
________, 20__
FOR VALUE RECEIVED, the undersigned OM GROUP, INC., a Delaware corporation
(herein, together with its successors and assigns, the "BORROWER"), hereby
promises to pay to the order of _______________________ (the "LENDER"), in
lawful money of the United States of America, provided that Revolving loans
denominated in Alternative Currency shall be payable in such Alternative
Currency, and in immediately available funds, at the Payment Office (such term
and certain other terms used herein without definition shall have the meanings
ascribed thereto in the Credit Agreement referred to below) of the
Administrative Agent, the principal sum of ________________ DOLLARS AND ____
CENTS ($___) (or the equivalent thereof in Alternative Currency) or, if less,
the then unpaid principal amount of all Revolving Loans made by the Lender (or
any of its predecessors in interest with respect hereto) to the Borrower
pursuant to the Credit Agreement, on the Maturity Date.
The Borrower promises also to pay interest in like currency and funds at
the Payment Office on the unpaid principal amount of each Revolving Loan made by
the Lender from the date of such Revolving Loan until paid at the rates and at
the times provided in section 2.7 of the Credit Agreement.
This Revolving Note is one of the Revolving Notes referred to in the Credit
Agreement, dated as of December 20, 2005, among the Borrower, the financial
institutions from time to time party thereto (including the Lender), and
National City Bank, as Administrative Agent (as from time to time in effect, the
"CREDIT AGREEMENT"), and is entitled to the benefits thereof and of the other
Credit Documents. As provided in the Credit Agreement, this Revolving Note is
subject to mandatory prepayment prior to the Maturity Date, in whole or in part.
In case an Event of Default shall occur and be continuing, the principal of
and accrued interest on this Revolving Note may be declared to be due and
payable in the manner and with the effect provided in the Credit Agreement.
The Borrower hereby waives presentment, demand, protest or notice of any
kind in connection with this Revolving Note. No failure to exercise, or delay in
exercising, any rights hereunder on the part of the holder hereof shall operate
as a waiver of any such rights.
THE BORROWER HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THE CREDIT
AGREEMENT AND THIS REVOLVING NOTE, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY. THE BORROWER (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY TO THE CREDIT AGREEMENT HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT THE OTHER PARTIES TO THE CREDIT
AGREEMENT HAVE BEEN INDUCED TO ENTER INTO THE CREDIT AGREEMENT BY, AMONG OTHER
THINGS, THE WAIVERS AND CERTIFICATIONS IN THIS PARAGRAPH.
THIS REVOLVING NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED
BY THE LAW OF THE STATE OF OHIO.
OM GROUP, INC.
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
LOANS AND PAYMENTS OF PRINCIPAL
AMOUNT
OF
DATE AMOUNT TYPE PRINCIPAL UNPAID
OF OF OF INTEREST PAID OR PRINCIPAL MADE
NOTATION LOAN LOAN PERIOD PREPAID BALANCE BY
-------- ------ ---- -------- --------- --------- ----
EXHIBIT A-2
SWING LINE NOTE
$____________ Cleveland, Ohio
________, 20__
FOR VALUE RECEIVED, the undersigned OM GROUP, INC., a Delaware corporation
(herein, together with its successors and assigns, the "BORROWER"), hereby
promises to pay to the order of _______________________ (the "LENDER"), in
lawful money of the United States of America and in immediately available funds,
at the Payment Office (such term and certain other terms used herein without
definition shall have the meanings ascribed thereto in the Credit Agreement
referred to below) of the Administrative Agent, the principal sum of
________________ DOLLARS AND ____ CENTS ($___) or, if less, the then unpaid
principal amount of all Swing Line Loans made by the Lender (or any of its
predecessors in interest with respect hereto) to the Borrower pursuant to the
Credit Agreement. The Borrower will pay the principal amount of any Swing Line
Loan on the maturity date specified therefor in the Notice of Borrowing relating
thereto, which maturity date shall in no event be more than one Business Day
following the date such Swing Line Loan was made.
The Borrower promises also to pay interest in like currency and funds at
the Payment Office on the unpaid principal amount of each Swing Line Loan made
by the Lender from the date of such Swing Line Loan until paid at the rates and
at the times provided in section 2.7 of the Credit Agreement.
This Swing Line Note is one of the Swing Line Notes referred to in the
Credit Agreement, dated as of December 20, 2005, among the Borrower, the
financial institutions from time to time party thereto (including the Lender),
and National City Bank, as Administrative Agent (as from time to time in effect,
the "CREDIT AGREEMENT"), and is entitled to the benefits thereof and of the
other Credit Documents. As provided in the Credit Agreement, this Swing Line
Note is subject to mandatory prepayment prior to the maturity date of any Swing
Line Loan or the Maturity Date, in whole or in part.
In case an Event of Default shall occur and be continuing, the principal of
and accrued interest on this Swing Line Note may be declared to be due and
payable in the manner and with the effect provided in the Credit Agreement.
The Borrower hereby waives presentment, demand, protest or notice of any
kind in connection with this Swing Line Note. No failure to exercise, or delay
in exercising, any rights hereunder on the part of the holder hereof shall
operate as a waiver of any such rights.
THE BORROWER HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THE CREDIT
AGREEMENT AND THIS SWING LINE NOTE, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY. THE BORROWER (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY TO THE CREDIT AGREEMENT HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT THE OTHER PARTIES TO THE CREDIT
AGREEMENT HAVE BEEN INDUCED TO ENTER INTO THE CREDIT AGREEMENT BY, AMONG OTHER
THINGS, THE WAIVERS AND CERTIFICATIONS IN THIS PARAGRAPH.
THIS SWING LINE NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED
BY THE LAW OF THE STATE OF OHIO.
OM GROUP, INC.
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
LOANS AND PAYMENTS OF PRINCIPAL
TYPE AMOUNT
OF OF
DATE AMOUNT LOAN / OR PRINCIPAL UNPAID
OF OF INTEREST PAID OR PRINCIPAL MADE
NOTATION LOAN RATE MATURITY PREPAID BALANCE BY
-------- ------ --------- -------- --------- --------- ----
EXHIBIT B-1
NOTICE OF BORROWING
[Date]
National City Bank,
as Administrative Agent for the Lenders party
to the Credit Agreement referred to below
0000 Xxxx Xxxxx Xxxxxx
Xxxxxxxxx, Xxxx 00000
Attention: Agency Services Group
RE: NOTICE OF BORROWING UNDER THE CREDIT AGREEMENT,
DATED AS OF DECEMBER 20, 2005
Ladies and Gentlemen:
The undersigned, OM Group, Inc. (the "BORROWER"), refers to the Credit
Agreement, dated as of December 20, 2005 (as amended, restated, amended and
restated, supplemented or otherwise modified from time to time, the "CREDIT
AGREEMENT", the terms defined therein being used herein as therein defined),
among the Borrower, the financial institutions from time to time party thereto
(the "LENDERS"), and National City Bank, as Administrative Agent for such
Lenders, and hereby gives you notice, irrevocably, pursuant to section 2.3(a) of
the Credit Agreement, that the undersigned hereby requests one or more
Borrowings under the Credit Agreement, and in that connection sets forth in the
schedule attached hereto the information relating to each such Borrowing
(collectively the "PROPOSED BORROWING") as required by section 2.3(a) of the
Credit Agreement.
The undersigned hereby specifies that the Proposed Borrowing will consist
of Loans as indicated in the schedule attached hereto.
The undersigned hereby certifies that the following statements are true on
the date hereof, and will be true on the date of the Proposed Borrowing:
(A) the representations and warranties of the Credit Parties contained
in the Credit Agreement and the other Credit Documents are and will be true
and correct in all material respects, before and after giving effect to the
Proposed Borrowing and to the application of the proceeds thereof, as
though made on such date, except to the extent that such representations
and warranties expressly relate to an earlier specified date, in which case
such representations and warranties were true and correct in all material
respects as of the date when made; and
(B) no Default or Event of Default has occurred and is continuing, or
would result from such Proposed Borrowing or from the application of the
proceeds thereof.
Very truly yours,
OM GROUP, INC.
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
BORROWING SCHEDULE
PROPOSED BORROWING #1:
INTEREST PERIOD
BUSINESS DAY AND CURRENCY
OF AGGREGATE IF LOANS ARE
PROPOSED TYPE OF AMOUNT EUROCURRENCY
BORROWING FACILITY LOANS OF LOANS LOANS
------------- ------------------- ------------------------------- --------- ------------------------
Revolving Facility Prime Rate Loans One Month
Eurocurrency Loans Two Months
______, 20___ Swing Line Facility $________
Money Market Rate Loans with an Three Months
[Circle one of interest rate of ___% and a
above] maturity of one Business Day Six Months
[Circle and/or [Circle one of
complete one of above]
above]
Dollars
Alternative Currency
[Circle one of above]
PROPOSED BORROWING #2:
INTEREST PERIOD
BUSINESS DAY AND CURRENCY
OF AGGREGATE IF LOANS ARE
PROPOSED TYPE OF AMOUNT EUROCURRENCY
BORROWING FACILITY LOANS OF LOANS LOANS
------------- ------------------- ------------------------------- --------- ------------------------
Revolving Facility Prime Rate Loans One Month
Eurocurrency Loans Two Months
______, 20___ Swing Line Facility $________
Money Market Rate Loans with an Three Months
[Circle one of interest rate of ___% and a
above] maturity of one Business Day Six Months
[Circle and/or [Circle one of
complete one of above]
above]
Dollars
Alternative Currency
[Circle one of above]
PROPOSED BORROWING #3:
INTEREST PERIOD
BUSINESS DAY AND CURRENCY
OF AGGREGATE IF LOANS ARE
PROPOSED TYPE OF AMOUNT EUROCURRENCY
BORROWING FACILITY LOANS OF LOANS LOANS
------------- ------------------- ------------------------------- --------- ------------------------
Revolving Facility Prime Rate Loans One Month
Eurocurrency Loans Two Months
______, 20___ Swing Line Facility $________
Money Market Rate Loans with an Three Months
[Circle one of interest rate of ___% and a
above] maturity of one Business Day Six Months
[Circle and/or complete one of [Circle one of
above] above]
Dollars
Alternative Currency
[Circle one of above]
PROPOSED BORROWING #4:
INTEREST PERIOD
BUSINESS DAY AND CURRENCY
OF AGGREGATE IF LOANS ARE
PROPOSED TYPE OF AMOUNT EUROCURRENCY
BORROWING FACILITY LOANS OF LOANS LOANS
------------- ------------------- ------------------------------- --------- ------------------------
Revolving Facility Prime Rate Loans One Month
Eurocurrency Loans Two Months
______, 20___ Swing Line Facility $________
Money Market Rate Loans with an Three Months
[Circle one of interest rate of ___% and a
above] maturity of one Business Day Six Months
[Circle and/or complete one of [Circle one of
above] above]
Dollars
Alternative Currency
[Circle one of above]
EXHIBIT B-2
NOTICE OF CONVERSION
[Date]
National City Bank,
as Administrative Agent for the Lenders party
to the Credit Agreement referred to below
0000 Xxxx Xxxxx Xxxxxx
Xxxxxxxxx, Xxxx 00000
Attention: Agency Services Group
RE: NOTICE OF CONVERSION OF LOANS OF ONE TYPE
INTO ANOTHER TYPE, PURSUANT TO THE CREDIT AGREEMENT,
DATED AS OF DECEMBER 20, 2005
Ladies and Gentlemen:
The undersigned, OM Group, Inc. (the "BORROWER"), refers to the Credit
Agreement, dated as of December 20, 2005 (as amended, restated, amended and
restated, supplemented or otherwise modified from time to time, the "CREDIT
AGREEMENT", the terms defined therein being used herein as therein defined),
among the Borrower, the financial institutions from time to time party thereto
(the "LENDERS"), and National City Bank, as Administrative Agent for such
Lenders, and hereby gives you notice, irrevocably, pursuant to section 2.6 of
the Credit Agreement, that the undersigned hereby requests one or more
Conversions of Loans, outstanding pursuant to a Borrowing under a Facility,
consisting of one Type of Loan, into Loans under the same Facility of another
Type, pursuant to section 2.6 of the Credit Agreement, and in that connection
sets forth in the schedule attached hereto the information relating to each such
Conversion.
Very truly yours,
[OM GROUP, INC.]
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
CONVERSION SCHEDULE
PROPOSED CONVERSION #1
[OF THE LOANS DESCRIBED IN THE FIRST TABLE BELOW
INTO THE LOANS DESCRIBED IN THE SECOND TABLE BELOW]
AGGREGATE INTEREST PERIOD
AMOUNT IF LOANS ARE
DATE OF LOANS TYPE OF LOANS OF LOANS EUROCURRENCY LOANS
------------- ------------------ --------- ------------------
One Month
____, 20__ Prime Rate Loans
$________ Two Months
Eurocurrency Loans Three Months
[Circle one of Six Months
Above]
[Circle one of
above]
AGGREGATE INTEREST PERIOD
AMOUNT IF LOANS ARE
DATE OF LOANS TYPE OF LOANS OF LOANS EUROCURRENCY LOANS
------------- ------------------ --------- ------------------
One Month
____, 20__ Prime Rate Loans
$________ Two Months
Eurocurrency Loans Three Months
[Circle one of Six Months
Above]
[Circle one of
above]
PROPOSED CONVERSION #2
[OF THE LOANS DESCRIBED IN THE FIRST TABLE BELOW
INTO THE LOANS DESCRIBED IN THE SECOND TABLE BELOW]
AGGREGATE INTEREST PERIOD
AMOUNT IF LOANS ARE
DATE OF LOANS TYPE OF LOANS OF LOANS EUROCURRENCY LOANS
------------- ------------------ --------- ------------------
One Month
____, 20__ Prime Rate Loans
$________ Two Months
Eurocurrency Loans Three Months
[Circle one of Six Months
Above]
[Circle one of
above]
AGGREGATE INTEREST PERIOD
AMOUNT IF LOANS ARE
DATE OF LOANS TYPE OF LOANS OF LOANS EUROCURRENCY LOANS
------------- ------------------ --------- ------------------
One Month
____, 20__ Prime Rate Loans
$________ Two Months
Eurocurrency Loans Three Months
[Circle one of Six Months
Above]
[Circle one of
above]
EXHIBIT B-3
LETTER OF CREDIT REQUEST
No. ______________(1)
Dated __________(2)
National City Bank,
as Administrative Agent for the Lenders party
to the Credit Agreement referred to below
0000 Xxxx Xxxxx Xxxxxx
Xxxxxxxxx, Xxxx 00000
Attention: International Department/ Letter of Credit Operations
Ladies and Gentlemen:
The undersigned, OM Group, Inc. (the "BORROWER"), refers to the Credit
Agreement, dated as of December 20, 2005 (as amended, restated, amended and
restated, supplemented or otherwise modified from time to time, the "CREDIT
AGREEMENT", the capitalized terms defined therein being used herein as therein
defined), among the Borrower, the financial institutions from time to time party
thereto (the "LENDERS"), and National City Bank, as Administrative Agent for
such Lenders.
The undersigned hereby requests that ________________, as a Letter of
Credit Issuer, issue a Letter of Credit on __________, 20___ (the "DATE OF
ISSUANCE") in the aggregate amount of [U.S.$______] [amount in Alternative
Currency] for the account of ____________________.
The beneficiary of the requested Letter of Credit will be
____________________,(3) and such Letter of Credit will be in support of
____________________ (4) and will have a stated termination date of
____________.(5)
The undersigned hereby certifies that after giving effect to the requested
issuance of the Letter of Credit:
(i) $_________ principal amount of Revolving Loans will be
outstanding; and
(ii) the Letter of Credit Outstandings will be $___________.
The undersigned hereby certifies that the following statements are true on
the date hereof, and will be true on the Date of Issuance:
----------
(1) Letter of Request Number.
(2) Date of Letter of Request (at least five Business Days prior to the Date of
Issuance or such lesser number as may be agreed by the relevant Letter of
Credit Issuer).
(3) Insert name and address of beneficiary.
(4) Insert description of the supported obligations, name of agreement and/or
the commercial transaction to which this Letter of Credit Request relates.
(5) Insert last date upon which drafts may be presented (which may not be
beyond the 15th Business Day next preceding the Revolving Maturity Date).
(A) the representations and warranties of the Credit Parties contained
in the Credit Agreement and the other Credit Documents are and will be true
and correct in all material respects, before and after giving effect to the
Proposed Borrowing and to the application of the proceeds thereof, as
though made on such date, except to the extent that such representations
and warranties expressly relate to an earlier specified date, in which case
such representations and warranties were true and correct in all material
respects as of the date when made; and
(B) no Default or Event of Default has occurred and is continuing, or
would result after giving effect to the issuance of the Letter of Credit
requested hereby.
Copies of all documentation with respect to the supported transaction are
attached hereto.
Very truly yours,
OM GROUP, INC.
By:
------------------------------------
Title:
---------------------------------
EXHIBIT C
----------
FORM OF
ASSIGNMENT AND ASSUMPTION
----------
ASSIGNMENT AND ASSUMPTION
This Assignment and Assumption (the "Assignment and Assumption") is dated
as of the Effective Date set forth below and is entered into by and between
[Insert name of Assignor] (the "Assignor") and [Insert name of Assignee] (the
"Assignee"). Capitalized terms used but not defined herein shall have the
meanings given to them in the Credit Agreement identified below (as amended, the
"Credit Agreement"), receipt of a copy of which is hereby acknowledged by the
Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto
are hereby agreed to and incorporated herein by reference and made a part of
this Assignment and Assumption as if set forth herein in full.
For an agreed consideration, the Assignor hereby irrevocably sells and
assigns to the Assignee, and the Assignee hereby irrevocably purchases and
assumes from the Assignor, subject to and in accordance with the Standard Terms
and Conditions and the Credit Agreement, as of the Effective Date inserted by
the Administrative Agent as contemplated below (i) all of the Assignor's rights
and obligations in its capacity as a Lender under the Credit Agreement and any
other documents or instruments delivered pursuant thereto to the extent related
to the amount and percentage interest identified below of all of such
outstanding rights and obligations of the Assignor under the respective
facilities identified below (including without limitation any letters of credit,
guarantees, and swingline loans included in such facilities) and (ii) to the
extent permitted to be assigned under applicable law, all claims, suits, causes
of action and any other right of the Assignor (in its capacity as a Lender)
against any Person, whether known or unknown, arising under or in connection
with the Credit Agreement, any other documents or instruments delivered pursuant
thereto or the loan transactions governed thereby or in any way based on or
related to any of the foregoing, including, but not limited to, contract claims,
tort claims, malpractice claims, statutory claims and all other claims at law or
in equity related to the rights and obligations sold and assigned pursuant to
clause (i) above (the rights and obligations sold and assigned pursuant to
clauses (i) and (ii) above being referred to herein collectively as, the
"Assigned Interest"). Such sale and assignment is without recourse to the
Assignor and, except as expressly provided in this Assignment and Assumption,
without representation or warranty by the Assignor.
1. Assignor: ______________________________
2. Assignee: ______________________________
[and is an Affiliate]
3. Borrower(s): OM Group, Inc.
4. Administrative Agent: National City Bank, as the administrative agent under
the Credit Agreement
5. Credit Agreement: The Credit Agreement dated as of December 20, 2005
among OM Group, Inc. and the Lenders parties thereto,
National City Bank, as Administrative Agent, and the
other agents parties thereto
6. Assigned Interest:
Aggregate Amount of
Commitment/Loans Amount of Commitment/ Percentage Assigned of
Facility Assigned for all Lenders* Loans Assigned* Commitment/Loans(6)
----------------- ------------------- --------------------- ----------------------
Revolving Facility $ $ %
$ $ %
$ $ %
[7. Trade Date: ______________](7)
----------
* Amount to be adjusted by the counterparties to take into account any
payments or prepayments made between the Trade Date and the Effective Date.
(6) Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans
of all Lenders thereunder.
(7) To be completed if the Assignor and the Assignee intend that the minimum
assignment amount is to be determined as of the Trade Date.
Effective Date: _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT
AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
THEREFOR.]
The terms set forth in this Assignment and Assumption are hereby agreed to:
ASSIGNOR
[NAME OF ASSIGNOR]
By:
------------------------------------
Title:
---------------------------------
ASSIGNEE
[NAME OF ASSIGNEE]
By:
------------------------------------
Title:
---------------------------------
[Consented to and] Accepted:
NATIONAL CITY BANK, as
Administrative Agent
By
----------------------------------
Title:
------------------------------
[Consented to:]
[NAME OF RELEVANT PARTY]
By
----------------------------------
Title:
------------------------------
ANNEX 1
STANDARD TERMS AND CONDITIONS FOR
ASSIGNMENT AND ASSUMPTION
1. Representations and Warranties.
1.1 Assignor. The Assignor (a) represents and warrants that (i) it is
the legal and beneficial owner of the Assigned Interest, (ii) the Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and
(iii) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect
to (i) any statements, warranties or representations made in or in connection
with the Credit Agreement or any other Credit Document, (ii) the execution,
legality, validity, enforceability, genuineness, sufficiency or value of the
Credit Documents or any collateral thereunder, (iii) the financial condition of
the Borrower, any of its Subsidiaries or Affiliates or any other Person
obligated in respect of any Credit Document or (iv) the performance or
observance by the Borrower, any of its Subsidiaries or Affiliates or any other
Person of any of their respective obligations under any Credit Document.
1.2. Assignee. The Assignee (a) represents and warrants that (i) it
has full power and authority, and has taken all action necessary, to execute and
deliver this Assignment and Assumption and to consummate the transactions
contemplated hereby and to become a Lender under the Credit Agreement, (ii) it
meets all requirements of an Eligible Assignee under the Credit Agreement
(subject to receipt of such consents as may be required under the Credit
Agreement), (iii) from and after the Effective Date, it shall be bound by the
provisions of the Credit Agreement as a Lender thereunder and, to the extent of
the Assigned Interest, shall have the obligations of a Lender thereunder, (iv)
it has received a copy of the Credit Agreement, together with copies of the most
recent financial statements delivered pursuant to Section 8.1(a) thereof, as
applicable, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Assumption and to purchase the Assigned Interest on the basis of
which it has made such analysis and decision independently and without reliance
on the Administrative Agent or any other Lender, and (v) if it is not a United
States person (as such term is detailed in section 7701(a)(30) of the Code for
federal income tax purposes, attached to the Assignment and Assumption is any
documentation required to be delivered by it pursuant to the terms of the Credit
Agreement, duly completed and executed by the Assignee; and (b) agrees that (i)
it will, independently and without reliance on the Administrative Agent, the
Assignor or any other Lender, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Documents, and (ii) it will perform
in accordance with their terms all of the obligations which by the terms of the
Credit Documents are required to be performed by it as a Lender.
2. Payments. From and after the Effective Date, the Administrative
Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for
amounts which have accrued to but excluding the Effective Date and to the
Assignee for amounts which have accrued from and after the Effective Date.
3. General Provisions. This Assignment and Assumption shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns. This Assignment and Assumption may be executed in any
number of counterparts, which together shall constitute one instrument. Delivery
of an executed counterpart of a signature page of this Assignment and Assumption
by telecopy shall be effective as delivery of a manually executed counterpart of
this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the State of Ohio, without
regard to its conflicts of laws principles.
EXHIBIT H
SECTION 5.4(B)(II) CERTIFICATE
Reference is hereby made to the Credit Agreement, dated as of December 20,
2005, among OM Group, Inc., the financial institutions party thereto from time
to time, and National City Bank, as Administrative Agent (the "CREDIT
AGREEMENT"). Pursuant to the provisions of section 5.4(b)(ii) of the Credit
Agreement, the undersigned hereby certifies that it is not a "bank" as such term
is used in section 881(c)(3)(A) of the Internal Revenue Code of 1986, as
amended.
[NAME OF LENDER]
By:
------------------------------------
Title:
---------------------------------
Dated:
------------------------------
================================================================================
$100,000,000
REVOLVING CREDIT AGREEMENT
DATED AS OF
DECEMBER 20, 2005
AMONG
OM GROUP, INC.
AS THE BORROWER
THE LENDING INSTITUTIONS NAMED THEREIN
AS LENDERS
NATIONAL CITY BANK
AS A LENDER, THE SWING LINE LENDER, THE LETTER OF CREDIT ISSUER,
THE ADMINISTRATIVE AGENT, THE COLLATERAL AGENT,
THE LEAD ARRANGER, AND THE BOOK RUNNING MANAGER
================================================================================
TABLE OF CONTENTS
PAGE
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SECTION 1. DEFINITIONS AND TERMS........................................ 1
1.1. Certain Defined Terms........................................ 1
1.2. Computation of Time Periods.................................. 20
1.3. Accounting Terms............................................. 20
1.4. Terms Generally.............................................. 20
1.5. Currency Equivalents......................................... 21
1.6. Pro Forma Calculations....................................... 21
SECTION 2. AMOUNT AND TERMS OF LOANS.................................... 21
2.1. Commitments for Loans........................................ 21
2.2. Minimum Borrowing Amounts, etc.; Pro Rata Borrowings......... 23
2.3. Procedures for Borrowing and Disbursement of Funds........... 23
2.4. Refunding of, or Participation in, Swing Line Loans.......... 25
2.5. Notes; Loan Accounts (a) Forms of Notes.................... 26
2.6. Voluntary Conversions of Revolving Loans Denominated in
Dollars................................................... 27
2.7. Interest..................................................... 28
2.8. Selection and Continuation of Interest Periods............... 30
2.9. Increased Costs, Illegality, etc............................. 31
2.10. Breakage Compensation........................................ 32
SECTION 3. LETTERS OF CREDIT............................................ 34
3.1. Letters of Credit............................................ 34
3.2. Letter of Credit Requests: Notices of Issuance............... 34
3.3. Agreement to Repay Letter of Credit Drawings................. 35
3.4. Letter of Credit Participations.............................. 35
3.5. Increased Costs.............................................. 37
3.6. Guaranty of Letter of Credit Obligations of Other Letter of
Credit Obligors........................................... 38
SECTION 4. FEES; COMMITMENTS............................................ 39
4.1. Fees......................................................... 39
4.2. Voluntary Termination/Reduction of Commitments............... 40
4.3. Mandatory Adjustments of Commitments, etc.................... 40
SECTION 5. PAYMENTS..................................................... 41
5.1. Voluntary Prepayments........................................ 41
5.2. Scheduled Repayments and Mandatory Prepayments............... 42
5.3. Method and Place of Payment.................................. 44
5.4. Net Payments................................................. 44
SECTION 6. CONDITIONS PRECEDENT......................................... 46
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TABLE OF CONTENTS
(continued)
PAGE
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6.1. Conditions Precedent at Closing Date......................... 46
6.2. Conditions Precedent to All Credit Events.................... 48
SECTION 7. REPRESENTATIONS AND WARRANTIES............................... 48
7.1. Corporate Status, etc........................................ 48
7.2. Subsidiaries................................................. 48
7.3. Corporate Power and Authority, etc........................... 49
7.4. No Violation................................................. 49
7.5. Governmental Approvals....................................... 49
7.6. Litigation................................................... 49
7.7. Use of Proceeds; Margin Regulations.......................... 49
7.8. Financial Statements, etc.................................... 49
7.9. No Material Adverse Change................................... 50
7.10. Tax Returns and Payments..................................... 50
7.11. Title to Properties, etc..................................... 50
7.12. Lawful Operations, etc....................................... 50
7.13. Environmental Matters........................................ 50
7.14. Compliance with ERISA........................................ 51
7.15. Intellectual Property, etc................................... 51
7.16. Investment Company Act, etc.................................. 51
7.17. Existing Indebtedness........................................ 51
7.18. Burdensome Contracts; Labor Relations........................ 52
7.19. Security Interests........................................... 52
7.20. Public Notes Indenture....................................... 52
7.21. True and Complete Disclosure................................. 52
7.22. Anti-Terrorism Law Compliance................................ 52
SECTION 8. AFFIRMATIVE COVENANTS........................................ 53
8.1. Reporting Requirements....................................... 53
8.2. Books, Records and Inspections............................... 55
8.3. Insurance.................................................... 55
8.4. Payment of Taxes and Claims.................................. 56
8.5. Corporate Franchises......................................... 56
8.6. Maintenance of Properties.................................... 56
8.7. Compliance with Statutes, etc................................ 56
8.8. Compliance with Environmental Laws........................... 57
8.9. Fiscal Years, Fiscal Quarters................................ 57
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TABLE OF CONTENTS
(continued)
PAGE
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8.10. Hedge Agreements, etc........................................ 58
8.11. Certain Subsidiaries to Join in Subsidiary Guaranty.......... 58
8.12. Additional Security; Further Assurances...................... 58
8.13. Casualty and Condemnation.................................... 60
8.14. Landlord/Mortgagee Waivers; Bailee Letters................... 61
8.15. Most Favored Covenant Status................................. 61
8.16. Senior Debt.................................................. 61
SECTION 9. NEGATIVE COVENANTS........................................... 61
9.1. Changes in Business.......................................... 61
9.2. Consolidation, Merger, Acquisitions, Asset Sales, etc........ 61
9.3. Liens........................................................ 63
9.4. Indebtedness................................................. 64
9.5. Advances, Investments, Loans and Guaranty Obligations........ 65
9.6. Dividends and Other Restricted Payments...................... 66
9.7. Consolidated Leverage Ratio.................................. 66
9.8. Cash Flow Coverage Ratio..................................... 67
9.9. Limitation on Certain Restrictive Agreements................. 67
9.10. Prepayments and Refinancings of Other Debt, etc.............. 67
9.11. Transactions with Affiliates................................. 68
9.12. Plan Terminations, Minimum Funding, etc...................... 68
9.13. Amendments to Material Agreements............................ 68
9.14. Anti-Terrorism Laws.......................................... 68
SECTION 10. EVENTS OF DEFAULT............................................ 68
10.1. Events of Default............................................ 68
10.2. Acceleration, etc............................................ 70
10.3. Application of Liquidation Proceeds.......................... 71
SECTION 11. THE ADMINISTRATIVE AGENT..................................... 71
11.1. Appointment.................................................. 71
11.2. Delegation of Duties......................................... 72
11.3. Exculpatory Provisions....................................... 72
11.4. Reliance by Administrative Agent............................. 72
11.5. Notice of Default............................................ 72
11.6. Non-Reliance................................................. 73
11.7. Indemnification.............................................. 73
11.8. The Administrative Agent in Individual Capacity.............. 73
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TABLE OF CONTENTS
(continued)
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11.9. Successor Administrative Agent............................... 73
11.10. Other Agents................................................. 74
11.11. No Reliance on Administrative Agent's Customer Identification
Program................................................... 74
11.12. USA Patriot Act.............................................. 74
SECTION 12. MISCELLANEOUS................................................ 74
12.1. Payment of Expenses etc...................................... 74
12.2. Right of Setoff.............................................. 76
12.3. Notices...................................................... 76
12.4. Benefit of Agreement......................................... 76
12.5. No Waiver: Remedies Cumulative............................... 79
12.6. Payments Pro Rata; Sharing of Setoffs, etc................... 79
12.7. Calculations: Computations................................... 80
12.8. Governing Law; Submission to Jurisdiction; Venue; Waiver of
Jury Trial................................................ 80
12.9. Counterparts................................................. 81
12.10. Effectiveness; Integration................................... 81
12.11. Headings Descriptive......................................... 81
12.12. Amendment or Waiver.......................................... 81
12.13. Survival of Indemnities...................................... 83
12.14. Domicile of Loans............................................ 83
12.15. Confidentiality.............................................. 83
12.16. Lender Register.............................................. 83
12.17. Limitations on Liability of the Letter of Credit Issuers..... 84
12.18. General Limitation of Liability.............................. 84
12.19. No Duty...................................................... 84
12.20. Lenders and Agent Not Fiduciary to Borrower, etc............. 84
12.21. Survival of Representations and Warranties................... 85
12.22. Severability................................................. 85
12.23. Independence of Covenants.................................... 85
12.24. Judgment Currency............................................ 85
12.25. Interest Rate Limitation..................................... 85
12.26. USA Patriot Act.............................................. 86
-iv-
ANNEX I - INFORMATION AS TO LENDERS
ANNEX II - INFORMATION AS TO SUBSIDIARIES
ANNEX III - DESCRIPTION OF EXISTING INDEBTEDNESS
ANNEX IV - DESCRIPTION OF EXISTING LIENS
ANNEX V - DESCRIPTION OF EXISTING ADVANCES, LOANS,
INVESTMENTS AND GUARANTEES
ANNEX VI - DESCRIPTION OF LETTERS OF CREDIT DEEMED
ISSUED UNDER THE CREDIT AGREEMENT
ANNEX VII - EXISTING HEDGE AGREEMENTS
EXHIBIT A-1 - FORM OF REVOLVING NOTE
EXHIBIT A-2 - FORM OF SWING LINE NOTE
EXHIBIT B-1 - FORM OF NOTICE OF BORROWING
EXHIBIT B-2 - FORM OF NOTICE OF CONVERSION
EXHIBIT B-3 - FORM OF LETTER OF CREDIT REQUEST
EXHIBIT C - FORM OF ASSIGNMENT AND ASSUMPTION
EXHIBIT D-1 - FORM OF COLLATERAL ASSIGNMENT OF PATENTS
EXHIBIT D-2 - FORM OF COLLATERAL ASSIGNMENT OF TRADEMARKS
EXHIBIT E - FORM OF PLEDGE AGREEMENT
EXHIBIT F - FORM OF SECURITY AGREEMENT
EXHIBIT G - FORM OF SUBSIDIARY GUARANTEE
EXHIBIT H - FORM OF SECTION 5.4(B)(II) CERTIFICATE
