SIXTH AMENDED AND RESTATED CREDIT AGREEMENTdated as of July 31, 2014amongPARK- OHIO INDUSTRIES, INC., RB&W CORPORATION OF CANADA, The European Borrowers Party Hereto, The Ex-Im Borrowers Party Hereto, The Other Loan Parties Party Hereto, The Lenders...
Exhibit 10.1
 SIXTH AMENDED AND RESTATED CREDIT AGREEMENT dated as of July 31, 2014 among PARK-OHIO INDUSTRIES, INC., RB&W CORPORATION OF CANADA, The European Borrowers Party Hereto, The Ex-Im Borrowers Party Hereto, The Other Loan Parties Party Hereto, The Lenders Party Hereto and JPMORGAN CHASE BANK, N.A., as Administrative Agent, JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as Canadian Agent, X.X. XXXXXX EUROPE LIMITED, as European Agent, RBS BUSINESS CAPITAL, as Syndication Agent, KEYBANK NATIONAL ASSOCIATION, as Co-Documentation Agent, FIRST NATIONAL BANK OF PENNSYLVANIA, as Co-Documentation Agent, U.S. BANK NATIONAL ASSOCIATION, as Co-Documentation Agent and Joint Bookrunner, PNC BANK, NATIONAL ASSOCIATION, as Joint Bookrunner, and J.X. XXXXXX SECURITIES INC., as Sole Lead Arranger and Bookrunning Manager |
CHASE BUSINESS CREDIT
TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS 1
SECTION 1.01 DEFINED TERMS. 1
SECTION 1.02 CLASSIFICATION OF LOANS AND BORROWINGS. 50
SECTION 1.03 TERMS GENERALLY. 50
SECTION 1.04 ACCOUNTING TERMS; GAAP. 50
ARTICLE II THE CREDITS 51
SECTION 2.01 COMMITMENTS. 51
SECTION 2.02 LOANS AND BORROWINGS. 53
SECTION 2.03 REQUESTS FOR BORROWINGS. 54
SECTION 2.04 PROTECTIVE ADVANCES. 56
SECTION 2.05 SWINGLINE LOANS AND OVERADVANCES; SETTLEMENT OF EX-IM REVOLVING LOANS. 57
SECTION 2.06 LETTERS OF CREDIT. 60
SECTION 2.07 FUNDING OF BORROWINGS. 64
SECTION 2.08 INTEREST ELECTIONS. 65
SECTION 2.09 TERMINATION OF COMMITMENTS; INCREASE IN REVOLVING COMMITMENTS. 66
SECTION 2.10 REPAYMENT AND AMORTIZATION OF LOANS; EVIDENCE OF DEBT. 68
SECTION 2.11 PREPAYMENT OF LOANS. 70
SECTION 2.12 FEES. 74
SECTION 2.13 INTEREST. 76
SECTION 2.14 ALTERNATE RATE OF INTEREST. 77
SECTION 2.15 INCREASED COSTS. 78
SECTION 2.16 BREAK FUNDING PAYMENTS. 79
SECTION 2.17 TAXES. 80
SECTION 2.18 PAYMENTS GENERALLY; ALLOCATION OF PROCEEDS; SHARING OF SET-OFFS. 81
SECTION 2.19 MITIGATION OBLIGATIONS; REPLACEMENT OF LENDERS. 85
SECTION 2.20 DEFAULTING LENDERS. 86
SECTION 2.21 RETURNED PAYMENTS. 87
SECTION 2.22 UNITED KINGDOM TAX MATTERS. 87
SECTION 2.23 EXCHANGE RATE FLUCTUATIONS. 92
SECTION 2.24 INTER-LENDER ASSIGNMENTS. 92
ARTICLE III REPRESENTATIONS AND WARRANTIES 93
SECTION 3.01 ORGANIZATION; POWERS. 93
SECTION 3.02 AUTHORIZATION; ENFORCEABILITY. 93
SECTION 3.03 GOVERNMENTAL APPROVALS; NO CONFLICTS. 93
SECTION 3.04 FINANCIAL CONDITION; NO MATERIAL ADVERSE CHANGE. 93
SECTION 3.05 PROPERTIES. 94
SECTION 3.06 LITIGATION AND ENVIRONMENTAL MATTERS. 94
SECTION 3.07 COMPLIANCE WITH LAWS AND AGREEMENTS. 94
SECTION 3.08 INVESTMENT COMPANY STATUS. 95
SECTION 3.09 TAXES. 95
SECTION 3.10 PENSION PLANS. 95
SECTION 3.11 DISCLOSURE. 96
SECTION 3.12 MATERIAL AGREEMENTS. 96
SECTION 3.13 SOLVENCY. 96
SECTION 3.14 INSURANCE. 97
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SECTION 3.15 CAPITALIZATION AND SUBSIDIARIES. 97
SECTION 3.16 SECURITY INTEREST IN COLLATERAL. 97
SECTION 3.17 EMPLOYMENT MATTERS. 98
SECTION 3.18 AFFILIATE TRANSACTIONS. 98
SECTION 3.19 NAMES; PRIOR TRANSACTIONS. 99
SECTION 3.20 REGULATION U. 99
SECTION 3.21 INDEBTEDNESS. 99
SECTION 3.22 SUBORDINATED INDEBTEDNESS. 99
SECTION 3.23 ANTI-CORRUPTION LAWS AND SANCTIONS. 99
SECTION 3.24 2011 INDENTURE. 99
SECTION 3.25 COMMON ENTERPRISE. 100
SECTION 3.26 FAST TRACK LOAN AGREEMENT. 100
SECTION 3.27 CENTRE OF MAIN INTERESTS. 100
SECTION 3.28 IRISH MATTERS. 100
ARTICLE IV CONDITIONS 101
SECTION 4.01 EFFECTIVE DATE. 101
SECTION 4.02 EACH CREDIT EXTENSION. 102
SECTION 4.03 EACH CANADIAN CREDIT EXTENSION. 103
SECTION 4.04 INITIAL EUROPEAN CREDIT EXTENSION. 103
SECTION 4.05 EACH EUROPEAN CREDIT EXTENSION. 105
SECTION 4.06 INITIAL EX-IM CREDIT EXTENSION. 105
SECTION 4.07 EACH EX-IM CREDIT EXTENSION. 106
ARTICLE V AFFIRMATIVE COVENANTS 107
SECTION 5.01 FINANCIAL STATEMENTS; BORROWING BASE AND OTHER INFORMATION. 107
SECTION 5.02 NOTICES OF MATERIAL EVENTS. 111
SECTION 5.03 EXISTENCE; CONDUCT OF BUSINESS. 112
SECTION 5.04 PAYMENT OF OBLIGATIONS. 113
SECTION 5.05 MAINTENANCE OF PROPERTIES. 113
SECTION 5.06 BOOKS AND RECORDS; INSPECTION RIGHTS. 113
SECTION 5.07 COMPLIANCE WITH LAWS. 114
SECTION 5.08 USE OF PROCEEDS. 114
SECTION 5.09 INSURANCE. 114
SECTION 5.10 CASUALTY AND CONDEMNATION. 115
SECTION 5.11 APPRAISALS. 115
SECTION 5.12 DEPOSITORY BANKS. 116
SECTION 5.13 ADDITIONAL COLLATERAL; FURTHER ASSURANCES. 116
SECTION 5.14 TRANSFER OF ACCOUNTS OF EUROPEAN LOAN PARTIES. 117
SECTION 5.15 COMMUNICATIONS WITH ACCOUNTANTS. 117
SECTION 5.16 COLLATERAL ACCESS AGREEMENTS AND REAL PROPERTY PURCHASES. 118
SECTION 5.17 SUBORDINATION OF INTERCOMPANY NOTES. 118
SECTION 5.18 FINANCIAL ASSISTANCE. 119
SECTION 5.19 U.K. PENSION PLANS. 119
SECTION 5.20 CENTRE OF MAIN INTERESTS. 119
ARTICLE VI NEGATIVE COVENANTS 119
SECTION 6.01 INDEBTEDNESS. 119
SECTION 6.02 LIENS. 122
SECTION 6.03 FUNDAMENTAL CHANGES. 123
SECTION 6.04 INVESTMENTS, LOANS, ADVANCES, GUARANTEES AND ACQUISITIONS. 123
SECTION 6.05 ASSET SALES. 125
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SECTION 6.06 SALE AND LEASEBACK TRANSACTIONS; OFF-BALANCE SHEET FINANCING. 125
SECTION 6.07 SWAP AGREEMENTS. 126
SECTION 6.08 RESTRICTED PAYMENTS; CERTAIN PAYMENTS OF INDEBTEDNESS. 126
SECTION 6.09 TRANSACTIONS WITH AFFILIATES. 127
SECTION 6.10 RESTRICTIVE AGREEMENTS. 128
SECTION 6.11 AMENDMENT OF MATERIAL DOCUMENTS. 128
SECTION 6.12 FOREIGN SUBSIDIARIES. 128
SECTION 6.13 DEBT SERVICE COVERAGE RATIO. 128
SECTION 6.14 LETTERS OF CREDIT. 129
SECTION 6.15 SALE OF ACCOUNTS. 129
SECTION 6.16 CHANGE OF FISCAL YEAR. 129
SECTION 6.17 CANADIAN PLANS. 129
ARTICLE VII EVENTS OF DEFAULT 129
ARTICLE VIII THE ADMINISTRATIVE AGENT 133
ARTICLE IX MISCELLANEOUS 137
SECTION 9.01 NOTICES. 137
SECTION 9.02 WAIVERS; AMENDMENTS. 139
SECTION 9.03 EXPENSES; INDEMNITY; DAMAGE WAIVER. 141
SECTION 9.04 SUCCESSORS AND ASSIGNS. 142
SECTION 9.05 SURVIVAL. 145
SECTION 9.06 COUNTERPARTS; INTEGRATION; EFFECTIVENESS. 146
SECTION 9.07 SEVERABILITY. 146
SECTION 9.08 RIGHT OF SETOFF. 146
SECTION 9.09 GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS. 146
SECTION 9.10 WAIVER OF JURY TRIAL. 147
SECTION 9.11 CONFESSION OF JUDGMENT. 147
SECTION 9.12 HEADINGS. 148
SECTION 9.13 CONFIDENTIALITY. 148
SECTION 9.14 SEVERAL OBLIGATIONS; NONRELIANCE; VIOLATION OF LAW. 149
SECTION 9.15 USA PATRIOT ACT; CANADIAN ANTI-MONEY LAUNDERING LEGISLATION. 149
SECTION 9.16 DISCLOSURE. 150
SECTION 9.17 APPOINTMENT FOR PERFECTION. 150
SECTION 9.18 INTEREST RATE LIMITATION. 150
SECTION 9.19 JUDGMENT CURRENCY. 150
SECTION 9.20 CURRENCY EQUIVALENT GENERALLY. 151
SECTION 9.21 NO CROSS COLLATERALIZATION. 151
SECTION 9.22 AMENDMENT AND RESTATEMENT. 151
SECTION 9.23 ADDITIONAL "KNOW YOUR CUSTOMER" CHECKS. 152
ARTICLE X LOAN GUARANTY 153
SECTION 10.01 GUARANTY. 153
SECTION 10.02 GUARANTY OF PAYMENT. 154
SECTION 10.03 NO DISCHARGE OR DIMINISHMENT OF LOAN GUARANTY. 154
SECTION 10.04 DEFENSES WAIVED. 155
SECTION 10.05 RIGHTS OF SUBROGATION. 156
SECTION 10.06 REINSTATEMENT; STAY OF ACCELERATION. 156
SECTION 10.07 INFORMATION. 156
SECTION 10.08 TERMINATION. 156
SECTION 10.09 TAXES. 156
SECTION 10.10 MAXIMUM LIABILITY. 157
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SECTION 10.11 CONTRIBUTION. 157
SECTION 10.12 LIABILITY CUMULATIVE. 158
SECTION 10.13 KEEPWELL. 158
ARTICLE XI THE BORROWER REPRESENTATIVE 158
SECTION 11.01 APPOINTMENT; NATURE OF RELATIONSHIP. 158
SECTION 11.02 POWERS. 158
SECTION 11.03 EMPLOYMENT OF AGENTS. 159
SECTION 11.04 NOTICES. 159
SECTION 11.05 SUCCESSOR BORROWER REPRESENTATIVE. 159
SECTION 11.06 EXECUTION OF LOAN DOCUMENTS; BORROWING BASE CERTIFICATE. 159
SECTION 11.07 REPORTING. 159
ARTICLE XII CASH MANAGEMENT 159
SECTION 12.01 LOCKBOX AND CASH MANAGEMENT ACCOUNT. 159
SECTION 12.02 APPLICATION OF FUNDS. 160
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SCHEDULES:
Commitment Schedule | ||
Schedule 1.01(A) | -- | European Eligible Jurisdictions |
Schedule 2.1.2 | -- | Existing Facility LCs |
Schedule 3.05 | -- | Properties |
Schedule 3.06 | -- | Disclosed Matters |
Schedule 3.12 | -- | Material Agreements |
Schedule 3.14 | -- | Insurance |
Schedule 3.15 | -- | Capitalization and Subsidiaries |
Schedule 3.18 | -- | Affiliate Transactions |
Schedule 3.19 | -- | Names; Prior Transactions |
Schedule 6.01 | -- | Existing Indebtedness |
Schedule 6.02 | -- | Existing Liens |
Schedule 6.04 | -- | Existing Investments |
Schedule 6.10 | -- | Existing Restrictions |
EXHIBITS:
Exhibit A | -- | Form of Assignment and Assumption |
Exhibit B | -- | Form of Joinder Agreement |
Exhibit C | -- | Form of European Borrower Joinder Agreement |
Exhibit D-1 | -- | Form of Domestic Borrowing Base Certificate |
Exhibit D-2 | -- | Form of Canadian Borrowing Base Certificate |
Exhibit D-3 | -- | Form of European Borrowing Base Certificate |
Exhibit D-4 | -- | Form of Aggregate Borrowing Base Certificate |
Exhibit E | -- | Form of Compliance Certificate |
Exhibit F-1 | -- | Form of Ex-Im Bank Borrower Agreement |
Exhibit F-2 | -- | Form of Ex-Im Borrower Agreement Supplement |
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SIXTH AMENDED AND RESTATED CREDIT AGREEMENT dated as of July 31, 2014, among PARK-OHIO INDUSTRIES, INC., RB&W CORPORATION OF CANADA, as Borrowers, the EUROPEAN BORROWERS party hereto, the EX-IM BORROWERS party hereto, the other Loan Parties party hereto, the Lenders party hereto, JPMORGAN CHASE BANK, N.A., as Administrative Agent, JPMORGAN CHASE BANK, N.A., Toronto Branch, as Canadian Agent, and X.X. XXXXXX SECURITIES INC., as Sole Lead Arranger and Bookrunning Manager.
Park Ohio Industries, Inc., certain of the Loan Parties, certain of the Lenders and the Administrative Agent are parties to the Existing Credit Agreement; such Persons have agreed to amend and restate the Existing Credit Agreement in its entirety as set forth herein.
The parties hereto agree as follows:
ARTICLE I
Definitions
Definitions
Section 1.01 Defined Terms.
As used in this Agreement, the following terms have the meanings specified below:
"2011 Indenture" means that certain Indenture dated as of April 7, 2011, between the Company, each of the guarantors party thereto, and Xxxxx Fargo Bank, National Association, as Trustee, pursuant to which the 2011 Senior Notes were issued, as the same may, with the prior written consent of the Administrative Agent and the Required Lenders, hereafter be from time to time amended, restated or otherwise modified.
"2011 Senior Notes" means the Notes (as defined in the 2011 Indenture) issued pursuant to the 2011 Indenture.
"Account" has the meaning assigned to such term in the Domestic Security Agreement.
"Account Debtor" means any Person obligated on an Account.
"Adjusted LIBO Rate" means, with respect to any Eurodollar Borrowing for any Interest Period or for any CBFR Borrowing or USBR Borrowing, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.
"Adjusted One Month LIBOR Rate" means, an interest rate per annum equal to the sum of (i) 2.5% per annum plus (ii) the Adjusted LIBO Rate for a one month Interest Period on such day (or if such day is not a Business Day, the immediately preceding Business Day); provided that, for the avoidance of doubt, the Adjusted LIBO Rate for any day shall be based on the rate appearing on the Reuters Screen LIBOR01 Page (or on any successor or substitute page) at approximately 11:00 a.m. London time on such day (without any rounding).
"Administrative Agent" means JPMorgan Chase Bank, N.A., in its capacity as administrative agent for the Lenders hereunder.
"Administrative Questionnaire" means an Administrative Questionnaire in a form supplied by the Administrative Agent.
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"Affiliate" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.
"Agent" means any of the Administrative Agent, the Canadian Agent or the European Agent, as the context may require; and "Agents" means all of the Administrative Agent, the Canadian Agent and the European Agent.
"Agreement" means this Sixth Amended and Restated Credit Agreement, as it may be amended or modified from time to time.
"Aggregate Availability" means, with respect to all Borrowers, at any time, an amount equal to (a) the lesser of (i) the aggregate Revolving Commitment and (ii) the Aggregate Borrowing Base minus (b) the sum of (i) the aggregate Domestic Revolving Exposure of all Revolving Lenders, (ii) the aggregate Canadian Revolving Exposure of all Lenders, (iii) at all times after the European Effective Date, the aggregate European Revolving Exposure of all Lenders and (iv) at all times after the Ex-Im Effective Date, the sum of the aggregate Ex-Im Revolving Exposure of all Lenders.
"Aggregate Borrowing Base" means, at any time, the aggregate of the Domestic Borrowing Base, the Canadian Borrowing Base, at all times after the European Effective Date, the European Borrowing Base, and at all times after the Ex-Im Effective Date, the Export-Related Borrowing Base.
"Aggregate Borrowing Base Certificate" means a certificate, signed and certified as accurate and complete by a Financial Officer of the Borrower Representative, in substantially the form of Exhibit D-4 or another form which is acceptable to the Administrative Agent in its Permitted Discretion.
"Aggregate Credit Exposure" means, at any time, the aggregate Credit Exposure of all the Lenders.
"Aggregate LC Exposure" means, at any time, the aggregate of the Domestic LC Exposure, the Ex-Im LC Exposure, the Canadian LC Exposure and the European LC Exposure.
"Alternate Rate" means, for any day and for any applicable currency, the sum of (a) a rate per annum selected by the Administrative Agent, in its reasonable discretion based on market conditions in consultation with the Borrower Representative, reflecting the cost to the Lenders of obtaining funds, plus (b) the Applicable Rate for Eurodollar Revolving Loans. When used in reference to any Loan or Borrowing, "Alternate Rate" refers to whether such Loan, or the Loans comprising such Borrowing are bearing interest at a rate determined by reference to the Alternate Rate.
"Anti-Corruption Laws" means all laws, rules, and regulations of any jurisdiction applicable to any Borrower or its Affiliates from time to time concerning or relating to bribery or corruption.
"Applicable Fee Rate" means, for any day, with respect to any commitment fees payable hereunder, a rate equal to (i) 0.380% per annum if the average daily aggregate Revolving Exposure of all Lenders for the prior fiscal quarter, as determined by Administrative Agent, is less than or equal to 50% of the aggregate Revolving Commitments as of the last day of such period, or (ii) 0.250% per annum if the average daily aggregate Revolving Exposure of all Lenders for the prior fiscal quarter, as determined by Administrative Agent, is greater than 50% of the aggregate Revolving Commitments as of the last day of such period; provided, that until five Business Days after the fiscal quarter ending September 30, 2014, the "Applicable Fee Rate" shall be the applicable rate per annum set forth in clause (i) above. For purposes of the foregoing, the Applicable Fee Rate shall be determined and made effective five Business Days after the receipt by the Administrative Agent of the Company's annual or quarterly consolidated financial statements delivered pursuant to Section 5.01 and (b) each change in the Applicable Fee Rate resulting from a change
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in the average daily aggregate Revolving Exposure of all Lenders shall be effective during the period commencing on and including the date of delivery to the Administrative Agent of such consolidated financial statements and ending on the date immediately preceding the effective date of the next such change, provided that the Applicable Fee Rate shall be deemed to be the applicable rate per annum set forth in clause (i) of the first sentence above at the written election of the Administrative Agent if the Company fails to deliver the annual or quarterly consolidated financial statements required to be delivered by it pursuant to Section 5.01, during the period from the expiration of the time for delivery thereof until such consolidated financial statements are delivered.
"Applicable Percentage" means, (a) with respect to any Domestic Revolving Lender, with respect to Domestic Revolving Loans, Domestic LC Exposure, Domestic Swingline Loans, Domestic Protective Advances, or Domestic Overadvances, a percentage equal to a fraction the numerator of which is such Domestic Revolving Lender's Domestic Revolving Commitment and the denominator of which is the aggregate Domestic Revolving Commitments of all Domestic Revolving Lenders (if the Domestic Revolving Commitments have terminated or expired, the Applicable Percentages shall be determined based upon such Domestic Revolving Lender's share of the aggregate Domestic Revolving Exposures at that time); provided that for purposes of determining a Lender's Applicable Percentage, as such term is used in Section 2.20 when a Defaulting Lender shall exist, any such Defaulting Lender's Domestic Revolving Commitment shall be disregarded in the calculation, (b) with respect to any Canadian Revolving Lender, with respect to Canadian Revolving Loans, Canadian LC Exposure, Canadian Swingline Loans, Canadian Protective Advances, or Canadian Overadvances, a percentage equal to a fraction the numerator of which is such Canadian Revolving Lender's Canadian Revolving Subcommitment and the denominator of which is the aggregate Canadian Revolving Subcommitment of all Canadian Revolving Lenders (if the Canadian Revolving Subcommitment have terminated or expired, the Applicable Percentages shall be determined based upon such Canadian Revolving Lender's share of the aggregate Canadian Revolving Exposures at that time); provided that for purposes of determining a Lender's Applicable Percentage, as such term is used in Section 2.20 when a Defaulting Lender shall exist, any such Defaulting Lender's Canadian Revolving Subcommitment shall be disregarded in the calculation, (c) with respect to any European Revolving Lender, with respect to European Revolving Loans, European LC Exposure, European Swingline Loans, European Protective Advances, or European Overadvances, a percentage equal to a fraction the numerator of which is such European Revolving Lender's European Revolving Subcommitment and the denominator of which is the aggregate European Revolving Subcommitment of all European Revolving Lenders (if the European Revolving Subcommitment have terminated or expired, the Applicable Percentages shall be determined based upon such European Revolving Lender's share of the aggregate European Revolving Exposures at that time); provided that for purposes of determining a Lender's Applicable Percentage, as such term is used in Section 2.20 when a Defaulting Lender shall exist, any such Defaulting Lender's European Revolving Subcommitment shall be disregarded in the calculation, (d) with respect to the Ex-Im Revolving Lender, with respect to Ex-Im Revolving Loans or Ex-Im LC Exposure, a percentage equal to one hundred percent (100%); and with respect to any Ex-Im Participant, with respect to Ex-Im Revolving Loans or Ex-Im LC Exposure, a percentage equal to a fraction, the numerator of which such Ex-Im Participant's Ex-Im Revolving Subcommitment and the denominator of which is the aggregate Ex-Im Revolving Subcommitment of all Ex-Im Participants (if the Ex-Im Revolving Subcommitment have terminated or expired, the Applicable Percentages shall be determined based upon such Ex-Im Participant's share of the aggregate Ex-Im Revolving Exposures at such time); provided that for purposes of determining a Lender's Applicable Percentage, as such term is used in Section 2.20 when a Defaulting Lender shall exist, any such Defaulting Lender's Ex-Im Revolving Subcommitment shall be disregarded in the calculation, (e) with respect to any Term Lender with respect to the Term Loans, a percentage equal to a fraction the numerator of which is such Term Lender's outstanding principal amount of the Term Loans and the denominator of which is the aggregate outstanding amount of Term Loans of all Term Lenders, and (f) with respect to any Lender, with respect to the Aggregate Credit Exposure, a percentage based upon such Lender's share of the Aggregate Credit Exposure and the unused Commitments; provided that for purposes of determining a Lender's Applicable Percentage, as such
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term is used in Section 2.20 when a Defaulting Lender shall exist, any such Defaulting Lender's Commitments shall be disregarded in the calculation.
"Applicable Rate" means, for any day, with respect to any CBFR Loan, CP Loan, USBR Loan, CDOR Rate Loan, Eurodollar Loan or Overnight LIBO Rate Loan, as the case may be, the applicable rate per annum set forth below under the caption "CBFR Spread", "CP Spread", "USBR Spread", "CDOR Spread", "Eurodollar Spread" or "Overnight LIBO Rate Spread," as the case may be, based upon the Debt Service Coverage Ratio as of the most recent determination date, provided that until five Business Days after the receipt by the Administrative Agent, pursuant to Section 5.01, of the Company's consolidated financial information for the Company's fiscal quarter ending September 30, 2014, the "Applicable Rate" shall be the applicable rate per annum set forth below in Category 1:
Debt Service Coverage Ratio | Domestic, Canadian and European Revolving Loan Eurodollar Spread | Canadian Revolving Loan CDOR Spread | Overnight LIBO Rate Spread | Canadian Revolving Loan USBR Spread | Domestic Revolving Loan CBFR Spread | Canadian Revolving Loan CP Spread | Ex-Im Revolving Loan Eurodollar Spread | Ex-Im Revolving Loan CBFR Spread | Term Loan Eurodollar Spread | Term Loan CBFR Spread |
Category 1 ≥ 1.75 to 1.0 | 1.50% | 1.50% | 1.50% | 0.00% | -1.25% | 0.00% | 0.00% | 0.00% | 2.00% | -0.75% |
Category 2 < 1.75 to 1.0 but ≥ 1.50 to 1.0 | 1.75% | 1.75% | 1.75% | 0.25% | -1.00% | 0.25% | 0.25% | 0.00% | 2.25% | -0.50% |
Category 3 < 1.50 to 1.0 but ≥ 1.25 to 1.0 | 2.00% | 2.00% | 2.00% | 0.50% | -0.75% | 0.50% | 0.50% | 0.00% | 2.50% | -0.25% |
Category 4 < 1.25 to 1.0 but ≥ 1.10 to 1.0 | 2.25% | 2.25% | 2.25% | 0.75% | -0.50% | 0.75% | 0.75% | 0.00% | 2.75% | 0.00% |
Category 5 < 1.10 to 1.0 | 2.50% | 2.50% | 2.50% | 1.00% | -0.25% | 1.00% | 1.00% | 0.00% | 3.00% | 0.25% |
For purposes of the foregoing, (a) the Applicable Rate shall be determined and made effective five Business Days after the receipt by the Administrative Agent of the Company's annual or quarterly consolidated financial statements delivered pursuant to Section 5.01 and (b) each change in the Applicable Rate resulting from a change in the Debt Service Coverage Ratio shall be effective during the period commencing on and including the date of delivery to the Administrative Agent of such consolidated financial statements indicating such change and ending on the date immediately preceding the effective date of the next such change, provided that the Debt Service Coverage Ratio shall be deemed to be in Category 5 at the written election of the Administrative Agent if the Company fails to deliver the annual or quarterly consolidated financial statements required to be delivered by it pursuant to Section 5.01, during the period from the expiration of the time for delivery thereof until such consolidated financial statements are delivered.
"Approved Fund" has the meaning assigned to such term in Section 9.04.
"Assignment and Assumption" means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other form approved by the Administrative Agent.
"Availability Period" means the period from and including the Effective Date to but excluding the earlier of the Maturity Date and the date of termination of the Commitments.
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"Available Revolving Commitment" means, at any time, the total Domestic Revolving Commitment then in effect minus the sum of (a) the Domestic Revolving Exposure of all Domestic Revolving Lenders at such time, (b) the Ex-Im Revolving Exposure of the Ex-Im Revolving Lender at such time relating to Ex-Im Revolving Loans, (c) 25% of the Ex-Im LC Exposure of the Ex-Im Revolving Lender at such time, (d) the Canadian Revolving Exposure of all Canadian Revolving Lenders at such time and (e) at all times after the European Effective Date, the European Revolving Exposure of all European Revolving Lenders at such time.
"Banking Services" means each and any of the following bank services provided to any Loan Party by any Agent or one or more Lenders or their respective Affiliates: (a) credit cards for commercial customers (including, without limitation, "commercial credit cards" and purchasing cards), (b) stored value cards, (c) treasury management services (including, without limitation, controlled disbursement, automated clearinghouse transactions, return items, overdrafts, interstate depository network services or any direct debit scheme or arrangement), and (d) leasing services.
"Banking Services Obligations" of the Loan Parties means any and all obligations of the Loan Parties, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor) in connection with Banking Services.
"Banking Services Reserves" means all Reserves which the Administrative Agent from time to time establishes in its Permitted Discretion for Banking Services then provided or outstanding.
"Bankruptcy Code" means, as applicable, (i) Title 11 of the U.S. Code (11 U.S.C. §101 et seq) and any rule or regulation issued thereunder, or (ii) the Bankruptcy and Insolvency Act (Canada) and the Companies' Creditors Arrangement Act (Canada) and any rules or regulations issued thereunder.
"Base Availability Amount" means an amount at any time equal to the sum of (a) $23,000,000 plus (b) 10% of the aggregate increases of the Domestic Revolving Commitment effected as of such time pursuant to Section 2.09(d).
"Bendix Accounts" means Accounts owing to Supply Technologies LLC by Bendix Commercial Vehicle Systems, LLC.
"Board" means the Board of Governors of the Federal Reserve System of the United States of America.
"Borrower" or "Borrowers" means, individually or collectively, the Company, the Canadian Borrower and the European Borrowers, and with respect to the Ex-Im Revolving Loans and the Ex-Im Letters of Credit, the Ex-Im Borrowers.
"Borrower Representative" means the Company, in its capacity as contractual representative of the Borrowers pursuant to Article XI.
"Borrowing" means (a) Domestic Revolving Loans of the same Type, made, converted or continued on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect, (b) Canadian Revolving Loans of the same Type made, converted or continued on the same date and, in the case of CDOR Rate Loans or Eurodollar Loans, as to which a single Interest Period is in effect, (c) European Revolving Loans of the same Type made, converted or continued on the same date and as to which a single Interest Period is in effect, (d) Ex-Im Revolving Loans of the same Type made, converted or continued on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect, (e) a Term Loan made on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect, (f) a Swingline Loan, (g) a Protective Advance, and (h) an Overadvance.
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"Borrowing Base Certificate" means a Domestic Borrowing Base Certificate, a Canadian Borrowing Base Certificate, a European Borrowing Base Certificate or an Ex-Im Borrowing Base Certificate, as the context indicates.
"Borrowing Request" means a request by the Borrower Representative for a Borrowing in accordance with Section 2.02.
"Business Day" means any day that is not a Saturday, Sunday or other day on which commercial banks in Chicago, Toronto, London or Dublin are authorized or required by law to remain closed; provided that, when used in connection with a Eurodollar Loan, the term "Business Day" shall also exclude any day on which banks are not open for dealings in Dollar, Euro or Sterling deposits, as applicable, in the London interbank market (and, in relation to any date for payment or purchase of Euro, the term "Business Day" shall also exclude any day on which the TARGET2 payment system is not open for the settlement of payment in Euro).
"Canadian Agent" means JPMorgan Chase Bank, N.A., Toronto Branch, in its capacity as agent for the Canadian Revolving Lenders hereunder.
"Canadian Availability" means, with respect to the Canadian Loan Parties, at any time, an amount equal to (a) the lesser of (i) the total Canadian Revolving Subcommitment of all Canadian Revolving Lenders and (ii) the Canadian Borrowing Base minus (b) the total Canadian Revolving Exposure of all Canadian Revolving Lenders.
"Canadian Borrower" means RB&W Corporation of Canada, an Ontario corporation.
"Canadian Borrowing Base" means, at any time, with respect to the Canadian Borrower and the other Canadian Loan Parties, the sum of (a) 85% of such Canadian Loan Parties' Eligible Accounts at such time, plus (b) the lesser of (i) the sum of (A) 85% multiplied by (B) the Orderly Liquidation Percentage multiplied by (C) the value of the Canadian Loan Parties' Eligible Inventory, valued at the lower of cost or market value, determined on a first-in, first-out basis, at such time plus the applicable Eligible Inventory Basket, if a positive number, or (ii) the Canadian Inventory Sublimit; provided, that aggregate advances to the Canadian Borrower predicated against the value of Eligible In-Transit Inventory at any time shall not exceed the Dollar Equivalent of $5,000,000 minus the aggregate advances to the Company predicated on the value of Eligible In-Transit Inventory at such time, minus (c) Reserves related to such Canadian Loan Parties. The Administrative Agent may, in its Permitted Discretion, reduce the advance rates set forth above, adjust Reserves or sublimits, or reduce one or more of the other elements used in computing the Canadian Borrowing Base. The Canadian Borrowing Base shall be calculated and reported in Dollars.
"Canadian Borrowing Base Certificate" means a certificate, signed and certified as accurate and complete by a Financial Officer of the Borrower Representative in substantially the form of Exhibit D-2 or another form which is acceptable to the Administrative Agent in its Permitted Discretion, reflecting the Canadian Borrowing Base.
"Canadian Collateral Documents" means, collectively, the agreements and documents granting a Lien to the Canadian Agent, for the benefit of the Canadian Agent and the Canadian Revolving Lenders, upon the Collateral of the Canadian Loan Parties as security for payment of all or any portion of the Foreign Obligations.
"Canadian Collection Account" has the meaning assigned to the term "Cash Management Account" in the Canadian Collateral Documents.
"Canadian Commercial LC Exposure" means, at any time, the sum of (a) the Dollar Equivalent of the aggregate undrawn amount of all outstanding commercial Canadian Letters of Credit at
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such time plus (b) the Dollar Equivalent of the aggregate amount of all Canadian LC Disbursements relating to commercial Canadian Letters of Credit that have not yet been reimbursed by or on behalf of the Canadian Borrower at such time. The Canadian Commercial LC Exposure of any Canadian Revolving Lender at any time shall be its Applicable Percentage of the total Canadian Commercial LC Exposure at such time.
"Canadian Defined Benefit Plan" means a pension plan for the purposes of any applicable pension benefits standards statute or regulation in Canada, which contains a “defined benefit provision,” as defined in subsection 147.1(1) of the Income Tax Act (Canada).
"Canadian Dollar Loan" means any Loan denominated in Canadian Dollars.
"Canadian Dollars" or "Cdn $" means lawful money of Canada.
"Canadian Economic Sanctions and Export Control Laws" means any Canadian laws, regulations or orders governing transactions in controlled goods or technologies or dealings with countries, entities, organizations, or individuals subject to economic sanctions and similar measures, including the Special Economic Measures Act (Canada), the United Nations Act, (Canada), the Freezing Assets of Corrupt Foreign Officials Act (Canada), Part II.1 of the Criminal Code, (Canada) and the Export and Import Permits Act (Canada), and any related regulations.
"Canadian Inventory Sublimit" means an amount equal to the Dollar Equivalent of $9,000,000.
"Canadian Issuing Bank" means JPMorgan Chase Bank, N.A., Toronto Branch, in its capacity as the issuer of Canadian Letters of Credit hereunder and its successors in such capacity as provided in Section 2.06(i). The Canadian Issuing Bank may, in its discretion, arrange for one or more Canadian Letters of Credit to be issued by Affiliates of the Canadian Issuing Bank, in which case the term "Canadian Issuing Bank" shall include any such Affiliate with respect to Canadian Letters of Credit issued by such Affiliate.
"Canadian LC Collateral Account" has the meaning assigned to such term in Section 2.06(j).
"Canadian LC Disbursement" means a payment made by the Canadian Issuing Bank pursuant to a Canadian Letter of Credit.
"Canadian LC Exposure" means, at any time the sum of the Canadian Commercial LC Exposure and the Canadian Standby LC Exposure. The Canadian LC Exposure of any Canadian Revolving Lender at any time shall be its Applicable Percentage of the total Canadian LC Exposure at such time.
"Canadian Letter of Credit" means any letter of credit issued pursuant to this Agreement upon the application of the Canadian Borrower (or the Borrower Representative, on behalf of the Canadian Borrower).
"Canadian Loan Guarantor" means each Domestic Loan Party, Canadian Loan Party and European Loan Party, and any other Person that has become or now or hereafter becomes a party to the Loan Guaranty pursuant to a joinder or by executing a separate Loan Guaranty in each case that guarantees all or any portion of the Foreign Obligations, together with their successors and assigns.
"Canadian Loan Parties" means the Canadian Borrower and each Canadian Subsidiary of the Company; and "Canadian Loan Party" means any one of them.
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"Canadian Obligations" means all unpaid principal of and accrued and unpaid interest on the Canadian Revolving Loans, all Canadian LC Exposure, all Canadian Swingline Loans, all Canadian Protective Advances, all Canadian Overadvances, all Banking Services Obligations of the Canadian Loan Parties, all Swap Obligations of the Canadian Loan Parties, and all expenses, reimbursements, indemnities and other obligations of the Canadian Loan Parties to the Canadian Revolving Lenders, the Agents, the Issuing Banks or any indemnified party arising under the Loan Documents.
"Canadian Overadvance" has the meaning assigned to such term in Section 2.05(b).
"Canadian Pension Event" means (a) the whole or partial withdrawal of a Loan Party from a Canadian Defined Benefit Plan during a plan year; or (b) the filing of a notice of intent to terminate in whole or in part a Canadian Defined Benefit Plan or the treatment of a Canadian Defined Benefit Plan amendment as a termination or partial termination; or (c) the institution of proceedings by any Governmental Authority to terminate in whole or in part or have a trustee appointed to administer a Canadian Defined Benefit Plan; or (d) any other event or condition which might reasonably constitute grounds for the termination of, winding up or partial termination of winding up or the appointment of trustee to administer, any Canadian Defined Benefit Plan.
"Canadian Plan" means a pension plan that is covered by the applicable pension standards laws of any jurisdiction in Canada including the Pension Benefits Act (Ontario) and the Income Tax Act (Canada) and that is either (a) maintained or sponsored by the Canadian Borrower or any other Loan Party for employees or (b) maintained pursuant to a collective bargaining agreement, or other arrangement under which more than one employer makes contributions and to which the Canadian Borrower or any other Loan Party is making or accruing an obligation to make contributions or has within the preceding five years made or accrued such contributions. Canadian Plan includes Canadian Defined Benefit Plans.
"Canadian Prime Rate" means the greater of (a) the annual rate of interest announced from time to time by Chase Canada as being its reference rate then in effect for determining interest rates on Canadian Dollar-denominated commercial loans made by it in Canada and (b) the CDOR Rate for a one month term in effect from time to time plus 100 basis points per annum; the Canadian Prime Rate may not be the lowest interest rate charged by Chase Canada for commercial or other extensions of credit. Each change in the Canadian Prime Rate shall be effective immediately from and after such change.
"Canadian Protective Advance" has the meaning assigned to such term in Section 2.04.
"Canadian Revolving Exposure" means, with respect to any Canadian Revolving Lender at any time, the sum of the Dollar Equivalent of the outstanding principal amount of such Canadian Revolving Lender's Canadian Revolving Loan and its Canadian LC Exposure plus an amount equal to its Applicable Percentage of the Dollar Equivalent of the aggregate principal amount of Canadian Swingline Loans outstanding at such time plus an amount equal to its Applicable Percentage of the Dollar Equivalent of the aggregate principal amount of Canadian Overadvances outstanding at such time plus an amount equal to its Applicable Percentage of the Dollar Equivalent of the aggregate principal amount of Canadian Protective Advances outstanding at such time.
"Canadian Revolving Lender" means each Lender with a Canadian Revolving Subcommitment or, if the Canadian Revolving Subcommitments have terminated or expired, a Lender with Canadian Revolving Exposure.
"Canadian Revolving Loans" means the Loans extended by the Canadian Revolving Lenders to the Canadian Borrower pursuant to Section 2.01(b).
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"Canadian Revolving Subcommitment" means, with respect to each Canadian Revolving Lender, the commitment, if any, of such Canadian Revolving Lender to make Canadian Revolving Loans and to acquire participations in Canadian Letters of Credit, Canadian Overadvances, Canadian Protective Advances and Canadian Swingline Loans hereunder, expressed as an amount representing the maximum possible aggregate amount of such Canadian Revolving Lender's Canadian Revolving Exposure hereunder, as such commitment may be reduced or increased from time to time pursuant to (a) Section 2.09 and (b) assignments by or to such Canadian Revolving Lender pursuant to Section 9.04. The initial amount of each Canadian Revolving Lender's Canadian Revolving Subcommitment is set forth on the Commitment Schedule, or in the Assignment and Assumption pursuant to which such Canadian Revolving Lender shall have assumed its Canadian Revolving Subcommitment, as applicable. The aggregate amount of the Canadian Revolving Lenders' Canadian Revolving Subcommitment is the Dollar Equivalent of $15,000,000. The Canadian Revolving Subcommitments are subcommitments of the Domestic Revolving Commitments and do not represent additional credit exposure.
"Canadian Standby LC Exposure" means, at any time, the sum of (a) the Dollar Equivalent of the aggregate undrawn amount of all outstanding standby Canadian Letters of Credit at such time plus (b) the Dollar Equivalent of the aggregate amount of all Canadian LC Disbursements relating to standby Canadian Letters of Credit that have not yet been reimbursed by or on behalf of the Canadian Borrower at such time. The Canadian Standby LC Exposure of any Canadian Revolving Lender at any time shall be its Applicable Percentage of the total Canadian Standby LC Exposure at such time.
"Canadian Subsidiary" means each direct or indirect Subsidiary of the Company (other than the Canadian Borrower) that is organized under the laws of Canada or any province or territory of Canada.
"Canadian Swingline Lender" means JPMorgan Chase Bank, N.A., Toronto Branch, in its capacity as lender of Canadian Swingline Loans hereunder.
"Canadian Swingline Loan" has the meaning assigned to such term in Section 2.05(a).
"Canadian Unfunded Pension Liability" means, at a point in time, with respect to any Canadian Defined Benefit Plan, the greater of the solvency deficiency or the windup deficiency as determined by a professional actuary in the actuarial valuation most recently filed with a Government Authority for the purposes of the Pension Benefits Act (Ontario) or such other provincial pension standards legislation that may be applicable to the funding and solvency requirements of that plan.
"Capital Expenditures" means, without duplication, any expenditure for any purchase or other acquisition of any asset which would be classified as a fixed or capital asset on a consolidated balance sheet of the Company and its Subsidiaries (other than any Excluded Subsidiary and any Designated Subsidiary) prepared in accordance with GAAP (excluding any such expenditures financed with the proceeds of asset dispositions or from casualty or condemnation events or made in connection with the trade-in or exchange of existing assets (to the extent of the value of the trade-in or assets bring exchanged) or such expenditures made in connection with an acquisition or investment permitted under Section 6.04).
"Capital Lease Obligations" of any Person means the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP.
"Caterpillar Accounts" means Accounts owing to Supply Technologies LLC by Caterpillar, Inc. or one of its Subsidiaries or Affiliates.
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"CB Floating Rate" means the Prime Rate; provided that the CB Floating Rate shall never be less than the Adjusted One Month LIBOR Rate for a one month Interest Period on such day (or if such day is not a Business Day, the immediately preceding Business Day). Any change in the CB Floating Rate due to a change in the Prime Rate or the Adjusted One Month LIBOR Rate shall be effective from and including the effective date of such change in the Prime Rate or the Adjusted One Month LIBOR Rate, respectively.
"CBFR", when used in reference to any Dollar Loan or Dollar Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the CB Floating Rate.
"CDOR", when used in reference to any Canadian Dollar Loan or Canadian Dollar Borrowing, refers to whether such Loan, or the Loans, comprising such Borrowing, are bearing interest at a rate determined by reference to the CDOR Rate.
"CDOR Rate" means, for the relevant Interest Period, the Canadian deposit offered rate which, in turn, means on any day the sum of: (a) the annual rate of interest determined with reference to the arithmetic average of the discount rate quotations of all institutions listed in respect of the relevant Interest Period for Canadian Dollar-denominated bankers' acceptances displayed and identified as such on the "Reuters Screen CDOR Page" as defined in the International Swap Dealer Association, Inc. definitions, as modified and amended from time to time, as of 10:00 a.m. (Toronto time) on such day, and if such day is not a Business Day, then on the immediately preceding Business Day (as adjusted by Chase Canada after 10:00 a.m. (Toronto time) to reflect any error in the posted rate of interest or in the posted average annual rate of interest); plus (b) 0.10% per annum; provided that if such rates are not available on the Reuters Screen CDOR Page on any particular day, then the Canadian deposit offered rate component of such rate on that day shall be calculated as the cost of funds quoted by Chase Canada to raise Canadian Dollars for the applicable Interest Period as of 10:00 a.m. (Toronto time) on such day for commercial loans or other extensions of credit to businesses of comparable credit risk; or if such day is not a Business Day, then as quoted by Chase Canada on the immediately preceding Business Day.
"Change in Control" means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the Effective Date), other than the Permitted Holders, of Equity Interests representing more than 20% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of Holdings; (b) the Permitted Holders shall collectively cease to own, free and clear of all Liens or other encumbrances, at least 15% of the outstanding voting Equity Interests of Holdings on a fully diluted basis, provided, however, that if they own less than 15%, if either Xxxxxx X. Xxxxxxxx or Xxxxxx X. Xxxxxxxx holds the office of chairman, chief executive officer, or president of the Company or Holdings, a Change of Control shall not be deemed to have occurred; (c) Holdings shall cease to own 100% of the Equity Interests of the Company; (d) except as otherwise permitted hereunder, the Company shall cease to own 100% of the Equity Interests of any of its direct or indirect wholly-owned Subsidiaries that are Loan Parties; or (e) the occurrence of a Change of Control, as defined in the 2011 Indenture.
"Change in Law" means (a) the adoption of any law, rule or regulation after the date of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Agreement or (c) compliance by any Lender or any Issuing Bank (or, for purposes of Section 2.15(b), by any lending office of such Lender or by such Lender's or such Issuing Bank's holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement; provided that notwithstanding anything herein to the contrary, (x) the Xxxx-Xxxxx Xxxx Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements or directives thereunder or issued in connection
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therewith or in the implementation thereof, and (y) all requests, rules, guidelines, requirements or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Change in Law", regardless of the date enacted, adopted, issued or implemented.
"Chase" means JPMorgan Chase Bank, N.A., a national banking association, in its individual capacity, and its successors.
"Chase Canada" means JPMorgan Chase Bank, N.A., Toronto Branch in its individual capacity, and its successors.
"Chase Europe" means X.X. Xxxxxx Europe Limited or JPMorgan Chase Bank, N.A. as required by the context, in each case in its individual capacity, and its successors.
"Citi Purchase Agreement (Hubbel)" means the Citi Purchase Agreement dated February 25, 2013 between Supply Technologies LLC and Citibank, N.A. with respect to the Hubbel Accounts.
"Citi Purchase Agreement (Xxxxxxx)" means the Citi Purchase Agreement, in form and substance reasonably satisfactory to the Administrative Agent, to be entered into between Supply Technologies LLC and Citibank, N.A. with respect to the Xxxxxxx Accounts.
"Class", when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Domestic Revolving Loans, Canadian Revolving Loans, European Revolving Loans, Ex-Im Revolving Loans, Term Loans, Swingline Loans, Protective Advances or Overadvances.
"Code" means, as applicable, the Internal Revenue Code of 1986, or the Income Tax Act (Canada), each as amended from time to time.
"Collateral" means any and all property owned, leased or operated by a Person covered by the Collateral Documents and any and all other property of any Loan Party, now existing or hereafter acquired, that may at any time be or become subject to a security interest or Lien in favor of the Administrative Agent, on behalf of itself and the Lenders, to secure the Secured Obligations, a security interest or Lien in favor of the Canadian Agent, on behalf of itself and the Canadian Revolving Lenders, to secure the Foreign Obligations, a security interest or Lien in favor of the European Agent, on behalf of itself and as security trustee for and on behalf of the European Revolving Lenders, to secure the Foreign Obligations or a security interest or Lien in favor of the Ex-Im Revolving Lender to secure the Ex-Im Obligations.
"Collateral Access Agreement" has the meaning assigned to such term in the Domestic Security Agreement.
"Collateral Documents" means, collectively, the Security Agreements, the Pledge Agreements, the Foreign Collateral Documents and any other documents granting a Lien upon the Collateral as security for payment of the Secured Obligations, the Ex-Im Obligations, the Canadian Obligations or the European Obligations, as applicable.
"Collection Account" means any Domestic Collection Account, Canadian Collection Account or European Collection Account, as the context indicates.
"Commitment" means, with respect to each Lender, without duplication, the sum of such Lender's Domestic Revolving Commitment, Canadian Revolving Subcommitment, European Revolving Subcommitment and Ex-Im Revolving Subcommitment, together with the commitment of such Lender to
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acquire participations in Protective Advances and Ex-Im Revolving Exposure hereunder. The amount of each Lender's Commitment as of the Effective Date is set forth on the Commitment Schedule, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Commitment, as applicable.
"Commitment Schedule" means the Schedule attached hereto identified as such.
"Commodity Exchange Act" means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.
"Consolidated Debt Charges" means, with reference to any period, without duplication, Consolidated Interest Expense (including interest expense in respect of the Irish Intercompany Subordinated Indebtedness) to the extent paid in cash in such period (but excluding any non-cash capitalized interest, costs, premiums and other similar amounts, and amortized debt service costs), plus scheduled principal payments on Indebtedness made during such period (including scheduled payments in respect of the Irish Intercompany Subordinated Indebtedness), plus prepayments on the 2011 Senior Notes made by the Company or any Subsidiary (excluding any Excluded Subsidiary and any Designated Subsidiary) during such period, all calculated for the Company and its Subsidiaries (excluding any Excluded Subsidiary and any Designated Subsidiary) on a consolidated basis.
"Consolidated EBITDA" means Consolidated Net Income, plus (a) to the extent deducted from revenues in determining Consolidated Net Income, (i) Consolidated Interest Expense, (ii) Consolidated Tax Expense, (iii) depreciation, (iv) amortization and (vi) other non-cash expenses (but excluding bad debt write-offs), minus, (b) to the extent added to revenues in determining Consolidated Net Income, gains on purchases of Indebtedness under the 2011 Senior Notes after the Fifth Restated Closing Date, all calculated for the Company and its Subsidiaries (excluding any Excluded Subsidiary, but including any Designated Subsidiary) on a consolidated basis. Notwithstanding the foregoing, it is agreed and understood that Consolidated EBITDA attributable to any Designated Subsidiary shall only be included in the calculation thereof to the extent of the Equity Interests that are directly owned by a Loan Party, and to the extent greater than $0.
"Consolidated Interest Expense" means, with reference to any period, the interest expense of the Company and its Subsidiaries (excluding any Excluded Subsidiary and any Designated Subsidiary) calculated on a consolidated basis for such period.
"Consolidated Net Income" means, with reference to any period, the net income or loss of the Company and its Subsidiaries (excluding any Excluded Subsidiary, but including any Designated Subsidiary) calculated on a consolidated basis for such period.
"Consolidated Tax Expense" means, with reference to any period, the tax expense of the Company and its Subsidiaries (excluding any Excluded Subsidiary and any Designated Subsidiary) calculated on a consolidated basis for such period.
"Contention Account" means any Account that is owing by an Account Debtor to ILS and that is classified by ILS, on its books and records, as a "contention account".
"Contribution Notice" means a contribution notice issued by the Pensions Regulator under section 38 or section 47 of the Pensions Xxx 0000 (U.K.).
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"Control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "Controlling" and "Controlled" have meanings correlative thereto.
"Controlled Disbursement Account" means any accounts of each of Company and the Canadian Borrower maintained with an Agent as a zero balance, cash management account pursuant to and under any agreement between such Borrower and each Agent, as modified and amended from time to time, and through which all disbursements of such Borrower and any Loan Party are made and settled on a daily basis with no uninvested balance remaining overnight.
"Xxxxxx Accounts" means Accounts owing to Supply Technologies LLC by Xxxxxx US, Inc. or one of its Subsidiaries or Affiliates identified as a buyer under the Xxxxx Fargo Purchase Agreement, as in effect on January 26, 2011.
"CP", when used in reference to any Canadian Dollar Loan or Canadian Dollar Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest by reference to the Canadian Prime Rate.
"Credit Exposure" means, as to any Lender at any time, the sum of (a) such Lender's Domestic Revolving Exposure at such time, plus (b) the Dollar Equivalent of such Lender's Canadian Revolving Exposure at such time, plus (c) the Dollar Equivalent of such Lender's European Revolving Exposure at such time, plus (d) an amount equal to its Applicable Percentage, if any, of the Ex-Im Revolving Exposure at such time, plus (except to the extent used in the calculation of the Applicable Fee Rate) (e) an amount equal to the aggregate principal amount of such Lender's Term Loans outstanding at such time.
"Credit Extension" means the making of a Loan or the issuance of a Letter of Credit hereunder.
"CTA" means the Corporation Tax Xxx 0000 (U.K.).
"Debt Service Coverage Ratio" means, the ratio, determined as of the end of each fiscal quarter of the Company for the then most-recently ended four fiscal quarters, of (a) Consolidated EBITDA minus cash taxes paid, minus unfunded Capital Expenditures, minus cash dividends and additional cash distributions of capital; provided, that cash dividends and cash distributions made to Holdings (1) as permitted by Sections 6.08(a)(iii)(A) and (B) shall only be included to the extent that such dividends and distributions exceed $750,000 in any fiscal year and (2) as permitted by Section 6.08(a)(iii)(C) shall be excluded, plus cash tax refunds received in the United States to (b) Consolidated Debt Charges, all calculated for the Company and its Subsidiaries (excluding any Excluded Subsidiary and any Designated Subsidiary) on a consolidated basis for such period.
"Default" means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.
"Defaulting Lender" means any Lender, as determined by the Administrative Agent in its Permitted Discretion, that has (a) failed to fund any portion of its Loans or participations in Letters of Credit, Swingline Loans or Ex-Im Revolving Loans within three Business Days of the date required to be funded by it hereunder, (b) notified any Borrower, any Agent, any Issuing Bank, any Swingline Lender or any Lender in writing that it does not intend to comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement or under other agreements in which it commits to extend credit, (c) failed, within three Business Days after request by the Administrative Agent, to confirm that it will comply with the terms of this Agreement relating to its obligations to fund prospective Loans and participations in then outstanding Letters of Credit,
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Swingline Loans and Ex-Im Revolving Loans, (d) otherwise failed to pay over to any Agent or any other Lender any other amount required to be paid by it hereunder within three Business Days of the date when due, unless the subject of a good faith dispute, or (e) (i) become or is insolvent or has a parent company that has become or is insolvent or (ii) become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, custodian, liquidator or monitor appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment or has a parent company that has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, custodian, liquidator or monitor appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment.
"Designated Subsidiary" means Southwest Steel Processing, LLC, an Ohio limited liability company.
"Deutsche Bank Purchase Agreement" means the db-eBills Agreement dated on or about September 26, 2012 between Supply Technologies LLC and Deutsche Bank AG New York Branch.
"Disclosed Matters" means the actions, suits and proceedings and the environmental matters disclosed on Schedule 3.06.
"Document" has the meaning assigned to such term in the Domestic Security Agreement.
"Dollar Equivalent" means (a) with respect to any Canadian Revolving Loan, Canadian Letter of Credit, Canadian Protective Advance or Canadian Swingline Loan, the amount denominated in Canadian Dollars, as of any date of determination, that could be purchased with the amount of Dollars at the most favorable spot exchange rate quoted by the Administrative Agent at approximately 11:00 a.m. (Chicago time) on such date, (b) with respect to any European Revolving Loan, European Letter of Credit, European Protective Advance or European Swingline Loan, the amount denominated in Sterling or Euro, as applicable, as of any date of determination, that could be purchased with the amount of Dollars at the most favorable spot exchange rate quoted by the Administrative Agent at approximately 11:00 a.m. (London time) on such date and (c) with respect to any other amount, if such amount is determined in Dollars, then such amount in Dollars and, if such amount is not determined in Dollars, the Dollar equivalent of such amount, determined by the Administrative Agent on the basis of its spot rate at 11:00 a.m. (Chicago time) on the date for which the Dollar equivalent amount is being determined.
"Dollar Loan" means any loan denominated in Dollars.
"Dollars" or "$" refers to lawful money of the United States of America.
"Domestic Availability" means, with respect to the Domestic Loan Parties, at any time, an amount equal to (a) the lesser of (i) the total Domestic Revolving Commitment minus (A) the total Canadian Revolving Exposure, (B) the total European Revolving Exposure and (C) the total Ex-Im Revolving Exposure and (ii) the Domestic Borrowing Base, minus (b) the total Domestic Revolving Exposure of all Domestic Revolving Lenders.
"Domestic Borrowing Base" means, at any time, with respect to the Company and the other Domestic Loan Parties, the sum of (a) 85% of such Domestic Loan Parties' Eligible Accounts at such time, plus (b) the lesser of (i) the sum of (A) 85% multiplied by (B) the Orderly Liquidation Percentage multiplied by (C) the value of the Domestic Loan Parties' Eligible Inventory, valued at the lower of cost or market value, determined on a first-in, first-out basis, at such time plus the applicable Eligible Inventory Basket, if a positive number, or (ii) $175,000,000; provided, that aggregate advances to the Company predicated on the value of Eligible In-Transit Inventory of the Domestic Loan Parties at any time shall not exceed $5,000,000 minus the Dollar Equivalent of the aggregate advances to the Canadian Borrower predicated on the value of Eligible
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In-Transit Inventory of the Canadian Loan Parties at such time, minus (c) Reserves related to such Domestic Loan Parties. The Administrative Agent may, in its Permitted Discretion, reduce the advance rates set forth above, adjust Reserves or sublimits or reduce one or more of the other elements used in computing the Domestic Borrowing Base.
"Domestic Borrowing Base Certificate" means a certificate, signed and certified as accurate and complete by a Financial Officer of the Borrower Representative in substantially the form of Exhibit D-1 or another form which is acceptable to the Administrative Agent in its Permitted Discretion, reflecting the Domestic Borrowing Base.
"Domestic Collection Account" has the meaning assigned to the term "Cash Management Account" in the Domestic Security Agreement.
"Domestic Commercial LC Exposure" means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding commercial Domestic Letters of Credit at such time plus (b) the aggregate amount of all Domestic LC Disbursements relating to commercial Domestic Letters of Credit that have not yet been reimbursed by or on behalf of the Company at such time. The Domestic Commercial LC Exposure of any Domestic Revolving Lender at any time shall be its Applicable Percentage of the total Domestic Commercial LC Exposure at such time.
"Domestic Issuing Bank" means JPMorgan Chase Bank, N.A., in its capacity as the issuer of Domestic Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.06(i). The Domestic Issuing Bank may, in its discretion, arrange for one or more Domestic Letters of Credit to be issued by Affiliates of the Domestic Issuing Bank, in which case the term "Domestic Issuing Bank" shall include any such Affiliate with respect to Domestic Letters of Credit issued by such Affiliate.
"Domestic LC Collateral Account" has the meaning assigned to such term in Section 2.05(j).
"Domestic LC Disbursement" means a payment made by the Domestic Issuing Bank pursuant to a Domestic Letter of Credit.
"Domestic LC Exposure" means, at any time, the sum of the Domestic Commercial LC Exposure and the Domestic Standby LC Exposure. The Domestic LC Exposure of any Domestic Revolving Lender at any time shall be its Applicable Percentage of the total Domestic LC Exposure at such time.
"Domestic Letter of Credit" means any letter of credit issued by the Domestic Issuing Bank pursuant to this Agreement upon the application of the Company.
"Domestic Loan Guarantor" means each Domestic Loan Party and any other Person that has become or now or hereafter becomes a party to the Loan Guaranty pursuant to a joinder or by executing a separate Loan Guaranty, in each case guaranteeing the Domestic Obligations, the Canadian Obligations, the European Obligations and the Ex-Im Obligations, together with their successors and assigns.
"Domestic Loan Parties" means the Company and each Domestic Subsidiary of the Company, other than an Excluded Subsidiary and a Designated Subsidiary; and "Domestic Loan Party" means any one of them.
"Domestic Obligations" means all Obligations other than the Foreign Obligations and the Ex-Im Obligations.
"Domestic Overadvance" has the meaning assigned to such term in Section 2.05(b).
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"Domestic Protective Advances" has the meaning assigned to such term in Section 2.04.
"Domestic Revolving Commitment" means, with respect to each Domestic Revolving Lender, the commitment, if any, of such Domestic Revolving Lender to make Domestic Revolving Loans and to acquire participations in Domestic Letters of Credit, Domestic Overadvances, Domestic Protective Advances and Domestic Swingline Loans hereunder, expressed as an amount representing the maximum possible aggregate amount of such Domestic Revolving Lender's Domestic Revolving Exposure hereunder, as such commitment may be reduced or increased from time to time pursuant to (a) Section 2.09 and (b) assignments by or to such Domestic Revolving Lender pursuant to Section 9.04. The initial amount of each Domestic Revolving Lender's Domestic Revolving Commitment is set forth on the Commitment Schedule, or in the Assignment and Assumption pursuant to which such Domestic Revolving Lender shall have assumed its Domestic Revolving Commitment, as applicable. The aggregate amount of the Domestic Revolving Lenders' Domestic Revolving Commitments as of the Effective Date is $230,000,000.
"Domestic Revolving Exposure" means, with respect to any Domestic Revolving Lender at any time, the sum of the outstanding principal amount of such Domestic Revolving Lender's Domestic Revolving Loans and its Domestic LC Exposure plus an amount equal to its Applicable Percentage of the aggregate principal amount of Domestic Swingline Loans outstanding at such time, plus an amount equal to its Applicable Percentage of the aggregate principal amount of Domestic Overadvances outstanding at such time, plus an amount equal to its Applicable Percentage of the aggregate principal amount of Domestic Protective Advances outstanding at such time.
"Domestic Revolving Lender" means each Lender with a Domestic Revolving Commitment or, if the Domestic Revolving Commitments have terminated or expired, a Lender with Domestic Revolving Exposure.
"Domestic Revolving Loans" means the Loans extended by the Domestic Revolving Lenders to the Company pursuant to Section 2.01(a).
"Domestic Security Agreement" means, collectively, that certain Third Amended and Restated Security Agreement dated as of the Fifth Restated Closing Date, among the Domestic Loan Parties and the Administrative Agent, for the benefit of the Administrative Agent and the Lenders, as the same may be amended, restated or otherwise modified from time to time hereafter.
"Domestic Standby LC Exposure" means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding standby Domestic Letters of Credit at such time plus (b) the aggregate amount of all Domestic LC Disbursements relating to standby Domestic Letters of Credit that have not yet been reimbursed by or on behalf of the Company at such time. The Domestic Standby LC Exposure of any Domestic Revolving Lender at any time shall be its Applicable Percentage of the total Domestic Standby LC Exposure at such time.
"Domestic Subsidiary" means each direct or indirect Subsidiary of the Company that is organized under the laws of the United States of America or any state, protectorate or territory of the United States of America.
"Domestic Swingline Lender" means JPMorgan Chase Bank, N.A., in its capacity as lender of Domestic Swingline Loans hereunder.
"Domestic Swingline Loan" has the meaning assigned to such term in Section 2.05(a).
"DSCR Availability Amount" means an amount at any time equal to the sum of (a) $40,250,000 plus (b) 17.5% of the aggregate increases of the Domestic Revolving Commitment effected as of such time pursuant to Section 2.09(d).
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"ECP" means an "eligible contract participant" as defined in Section 1(a)(18) of the Commodity Exchange Act or any regulations promulgated thereunder and the applicable rules issued by the Commodity Futures Trading Commission and/or the SEC.
"Effective Date" means the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02).
"Electronic System" means any electronic system, including e-mail, e-fax, Intralinks®, ClearPar® and any other Internet or extranet-based site, whether such electronic system is owned, operated or hosted by any Agent or the Issuing Bank and any of their respective Related Parties or any other Person, providing for access to data protected by passcodes or other security system.
"Eligible Accounts" means, at any time, the Accounts (other than Export-Related Accounts) of a Domestic Loan Party, a Canadian Loan Party or a European Borrower, as applicable, which the Administrative Agent determines in its Permitted Discretion are eligible as the basis for the extension of Domestic Revolving Loans, Domestic Swingline Loans, Canadian Revolving Loans, Canadian Swingline Loans, European Revolving Loans and European Swingline Loans, and the issuance of Domestic Letters of Credit, Canadian Letters of Credit and European Letters of Credit hereunder. Without limiting the Administrative Agent's discretion provided herein, Eligible Accounts shall not include any Account:
(a) which is not subject to a first priority perfected Lien (which, in the case of Accounts of the European Borrowers shall be a first priority assignment by way of security or a first priority fixed charge (and shall not mean a first priority floating charge)) in favor of the applicable Agent;
(b) which is subject to any Lien other than (i) a Lien in favor of the applicable Agent or the Ex-Im Revolving Lender and (ii) a Permitted Encumbrance which does not have priority over the Lien in favor of the applicable Agent;
(c) with respect to which (i) more than 60 days have elapsed since the due date for payment thereof, (ii) more than 120 days have elapsed since the date of the original invoice therefor or (iii) which has been written off the books of the applicable Loan Party or otherwise designated as uncollectible;
(d) which is owing by an Account Debtor for which more than 50% of the Accounts owing from such Account Debtor and its Affiliates are ineligible under clause (c) above;
(e) which is owing by an Account Debtor to the extent the aggregate amount of Accounts owing from such Account Debtor and its Affiliates to such Loan Party exceeds 25% of the aggregate amount of Eligible Accounts;
(f) with respect to which any covenant, representation, or warranty contained in this Agreement, any Security Agreement or any Foreign Collateral Document has been breached or is not true;
(g) which (i) does not arise from the sale of goods or performance of services in the ordinary course of business, (ii) is not evidenced by an invoice or other documentation satisfactory to the Administrative Agent which has been sent to the Account Debtor, (iii) represents a progress billing, (iv) is contingent upon such Loan Party's completion of any further performance, (v) represents a sale on a xxxx-and-hold, guaranteed sale, sale-and-return, sale on approval, consignment, cash-on-delivery or any other repurchase or return basis or (vi) relates to payments of interest;
(h) for which the goods giving rise to such Account have not been shipped to the Account Debtor or for which the services giving rise to such Account have not been performed by such Loan Party or if such Account was invoiced more than once;
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(i) with respect to which any check or other instrument of payment has been returned uncollected for any reason;
(j) which is owed by an Account Debtor which has (i) applied for, suffered, or consented to the appointment of any receiver, custodian, trustee, interim receiver, monitor, examiner, administrator, administrative receiver or liquidator of its assets, (ii) has had possession of all or a material part of its property taken by any receiver, custodian, trustee, interim receiver, monitor, examiner, administrator, administrative receiver or liquidator, (iii) filed, or had filed against it, any request or petition for liquidation, reorganization, arrangement, adjustment of debts, adjudication as bankrupt, winding-up, examination or voluntary or involuntary case under any state or federal bankruptcy laws or under the laws of its jurisdiction of incorporation (other than post-petition accounts payable of an Account Debtor that is a debtor-in-possession under the Bankruptcy Code and reasonably acceptable to the Administrative Agent), (iv) has admitted in writing its inability, or is generally unable to, pay its debts as they become due, (v) become insolvent, or (vi) ceased operation of its business;
(k) which is owed by any Account Debtor which has sold all or a substantially all of its assets;
(l) which is owed by an Account Debtor which (i) does not maintain its chief executive office (or its domicile, for purposes of the Quebec Civil Code) in the United States of America or Canada (with respect to any Domestic Loan Party or Canadian Loan Party) or any European Eligible Jurisdiction (with respect to any European Borrower) or (ii) is not organized under applicable law of the United States of America, any state or territory of the United States of America, the District of Columbia, Canada, or any province or territory of Canada (with respect to any Domestic Loan Party or Canadian Loan Party), or any European Eligible Jurisdiction (with respect to any European Borrower), unless, in any case, such Account is backed by a letter of credit acceptable to the Administrative Agent which is in the possession of, and is directly drawable by, the Administrative Agent;
(m) which is owed in any currency other (i) than Dollars, (ii) with respect to the Canadian Loan Parties, Canadian Dollars, or (iii) with respect to the European Borrowers, Sterling or Euro;
(n) which is owed by (i) the government (or any department, agency, public corporation, or instrumentality thereof) of any country (or any state, provincial or regional government thereof) other than the United States of America unless such Account is backed by a letter of credit acceptable to the Administrative Agent which is in the possession of the Administrative Agent, or (ii) the government of the United States of America, or any department, agency, public corporation, or instrumentality thereof, unless the Federal Assignment of Claims Act of 1940, as amended (31 U.S.C. § 3727 et seq. and 41 U.S.C. § 15 et seq.), and any other steps necessary to perfect the Liens of the Administrative Agent and the Ex-Im Revolving Lender in such Account have been complied with to the Administrative Agent's satisfaction; provided, that up to $750,000 in the aggregate of such Accounts described in this clause (ii) outstanding at any time shall not be deemed ineligible under this clause (n) notwithstanding the fact that such steps have not been completed;
(o) which is owed by any Affiliate, employee, officer, director, agent or stockholder of any Loan Party;
(p) which, for any Account Debtor, exceeds a credit limit established in writing by the Administrative Agent, in its Permitted Discretion, to the extent of such excess;
(q) which is owed by an Account Debtor or any Affiliate of such Account Debtor to which any Loan Party is indebted, but only to the extent of such indebtedness;
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(r) which is subject to any security, deposit, progress payment, retainage or other similar advance made by or for the benefit of an Account Debtor, in each case to the extent thereof, except to the extent that the applicable Loan Party has obtained and delivered to the Account Debtor, a letter of credit or bank guarantee relating to such security, deposit, progress payment, retainage or other similar advance;
(s) which is subject to any counterclaim, deduction, defense, setoff or dispute but only to the extent of any such counterclaim, deduction, defense, setoff or dispute, unless such Account is a Contention Account;
(t) which is evidenced by any promissory note, chattel paper, or instrument;
(u) which is owed by an Account Debtor located in any jurisdiction which requires filing of a "Notice of Business Activities Report" or other similar report in order to permit such Loan Party to seek judicial enforcement in such jurisdiction of payment of such Account, unless such Loan Party has filed such report or qualified to do business in such jurisdiction;
(v) with respect to which such Loan Party has made any agreement with the Account Debtor for any reduction thereof, other than discounts and adjustments given in the ordinary course of business, or any Account which was partially paid and such Loan Party created a new receivable for the unpaid portion of such Account;
(w) which does not comply in all material respects with the requirements of all applicable laws and regulations, whether federal, state, provincial or local, including without limitation the Federal Consumer Credit Protection Act, the Federal Truth in Lending Act and Regulation Z of the Board;
(x) which is for goods that have been sold under a purchase order or pursuant to the terms of a contract or other agreement or understanding (written or oral) that indicates or purports that any Person other than such Loan Party has or has had an ownership interest in such goods, or which indicates any party other than such Loan Party as payee or remittance party;
(y) which was created on cash on delivery terms;
(z) which is a Contention Account, but only to the extent that such Contention Account, when added together with the aggregate of all other Contention Accounts, exceeds the Dollar Equivalent of $750,000;
(aa) which the Administrative Agent determines in its Permitted Discretion may not be paid by reason of the Account Debtor's inability to pay;
(ab)at any time that the Volvo Purchase Agreement is in effect, such Account has not been accepted for purchase pursuant to the Volvo Purchase Agreement;
(ac)such Account is owing by a Purchaser (as defined in the Volvo Purchase Agreement) pursuant to the Volvo Purchase Agreement;
(ad)at any time that the Xxxxx Fargo Purchase Agreement is in effect, such Account has been accepted for purchase pursuant to such Xxxxx Fargo Purchase Agreement;
(ae)at any time that the JPMC Purchase Agreement is in effect, such Account has been accepted for purchase pursuant to such JPMC Purchase Agreement;
(af)at any time that the OFS Purchase Agreement is in effect, such Account has been accepted for purchase pursuant to such OFS Purchase Agreement;
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(ag)at any time that the Deutsche Bank Purchase Agreement is in effect, such Account has been accepted for purchase pursuant to such Deutsche Bank Purchase Agreement;
(ah)at any time that the Xxxxx Fargo Purchase Agreement (JCI) is in effect, such Account has been accepted for purchase pursuant to such Xxxxx Fargo Purchase Agreement (JCI);
(ai)at any time that the Citi Purchase Agreement (Hubbel) is in effect, such Account has been accepted for purchase pursuant to such Citi Purchase Agreement (Hubbel);
(aj)at any time that the Citi Purchase Agreement (Xxxxxxx) is in effect, such Account has been accepted for purchase pursuant to such Citi Purchase Agreement (Xxxxxxx); or
(ak)at any time that a Permitted Factoring Agreement is in effect, such Account has been accepted for purchase pursuant to such Permitted Factoring Agreement.
In the event that an Account which was previously an Eligible Account ceases to be an Eligible Account hereunder, the Company, the Canadian Borrower or any European Borrower, as applicable, shall notify the Administrative Agent thereof (i) within three Business Days of the date the applicable Borrower has obtained knowledge thereof, if any such Accounts are in excess of the Dollar Equivalent of $1,000,000 in the aggregate for any Account Debtor and (ii) in all other cases, on and at the time of submission to the Administrative Agent of the next Borrowing Base Certificate of such Borrower. In determining the amount of an Eligible Account, the face amount of an Account may, in the Administrative Agent's Permitted Discretion, be reduced by, without duplication, to the extent not reflected in such face amount, (i) the amount of all accrued and actual discounts, claims, credits or credits pending, promotional program allowances, price adjustments, finance charges or other allowances (including any amount that the applicable Loan Party may be obligated to rebate to an Account Debtor pursuant to the terms of any agreement or understanding (written or oral)) and (ii) the aggregate amount of all cash received in respect of such Account but not yet applied by such Loan Party to reduce the amount of such Account.
"Eligible Equipment" means, at any time, Equipment owned by a Domestic Loan Party which the Administrative Agent determines in its Permitted Discretion is eligible hereunder. Without limiting the Administrative Agent's discretion provided herein, Eligible Equipment shall not include any Equipment as to which:
(a) such Domestic Loan Party does not have good title;
(b) such Domestic Loan Party does not have the right to subject such Equipment to a Lien in favor of the Administrative Agent;
(c) such Equipment is not subject to a first priority perfected Lien in favor of the Administrative Agent or is not free and clear of all other Liens of any nature whatsoever (except for Permitted Encumbrances which do not have priority over the Lien in favor of the Administrative Agent);
(d) the full purchase price for such Equipment has not been paid by such Domestic Loan Party;
(e) such Equipment is not located on premises (i) owned by such Domestic Loan Party, or (ii) leased by such Domestic Loan Party where the lessor has delivered to the Administrative Agent a Collateral Access Agreement, unless a Reserve equal to three month's rent, charges, and other amounts due or scheduled to become due with respect to such facility has been established by the Administrative Agent in its Permitted Discretion;
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(f) such Equipment is obsolete or unfit for further use and is not used or held for use by such Domestic Loan Party in the ordinary course of business of the Domestic Loan Party;
(g) such Equipment is subject to any agreement which restricts the Administrative Agent's ability to take possession of, sell or otherwise dispose of such Equipment; or
(h) such Equipment constitutes "fixtures" under the applicable laws of the jurisdiction in which such Equipment is located.
"Eligible Export-Related Accounts" means, at any time, the Export-Related Accounts of an Ex-Im Credit Party that are due and collectible in the United States of America and that satisfy the criteria for "Eligible Export-Related Accounts Receivable" criteria in the Ex-Im Bank Borrower Agreement.
In the event that an Export-Related Account which was previously an Eligible Export-Related Account ceases to be an Eligible Export-Related Account hereunder, the Borrower Representative shall notify the Administrative Agent thereof (i) within three Business Days of the date the Borrower Representative has obtained knowledge thereof, if any such Export-Related Accounts are in excess of the Dollar Equivalent of $1,000,000 in the aggregate for any Account Debtor and (ii) in all other cases, on and at the time of submission to the Administrative Agent of the next Ex-Im Borrowing Base Certificate. In determining the amount of an Eligible Export-Related Account, the face amount of an Export-Related Account may, in the Administrative Agent's Permitted Discretion, be reduced by, without duplication, to the extent not reflected in such face amount, (i) the amount of all accrued and actual discounts, claims, credits or credits pending, promotional program allowances, price adjustments, finance charges or other allowances (including any amount that the applicable Ex-Im Credit Party may be obligated to rebate to an Account Debtor pursuant to the terms of any agreement or understanding (written or oral)) and (ii) the aggregate amount of all cash received in respect of such Export-Related Account but not yet applied by such Ex-Im Credit Party to reduce the amount of such Export-Related Account.
"Eligible Export-Related Inventory" means, at any time, the Export-Related Inventory of an Ex-Im Credit Party that satisfies the criteria for "Eligible Export-Related Inventory" contained in the Ex-Im Bank Borrower Agreement.
In the event that Export-Related Inventory which was previously Eligible Export-Related Inventory ceases to be Eligible Export-Related Inventory hereunder, the Borrower Representative shall notify the Administrative Agent thereof (i) within three Business Days of the date the Borrower Representative has obtained knowledge thereof, if any such Inventory has a value (based on the lines of cost or market, determined on a first-in, first-out basis) in excess of the Dollar Equivalent of $2,000,000 in the aggregate and (ii) in all other cases, on and at the time of submission to the Administrative Agent of the next Ex-Im Borrowing Base Certificate.
"Eligible In-Transit Inventory" has the meaning assigned to such term in clause (f) of the definition of the term "Eligible Inventory".
"Eligible Inventory" means, at any time, the Inventory (other than Export-Related Inventory) of a Domestic Loan Party, a Canadian Loan Party or a European Borrower, as applicable, which the Administrative Agent determines in its Permitted Discretion is eligible as the basis for the extension of Domestic Revolving Loans, Domestic Swingline Loans, Canadian Revolving Loans, Canadian Swingline Loans, European Revolving Loans and European Swingline Loans, and the issuance of Domestic Letters of Credit, Canadian Letters of Credit and European Letters of Credit hereunder. Without limiting the Administrative Agent's discretion provided herein, Eligible Inventory shall not include any Inventory:
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(a) which is not subject to a first priority perfected Lien in favor of the Administrative Agent;
(b) which is subject to any Lien other than (i) a Lien in favor of the Administrative Agent and (ii) a Permitted Encumbrance which does not have priority over the Lien in favor of the Administrative Agent;
(c) with respect to which any covenant, representation, or warranty contained in this Agreement, any Security Agreement or any Foreign Collateral Document has been breached or is not true and which does not conform to all standards imposed by any Governmental Authority;
(d) in which any Person other than such Loan Party shall (i) have any direct or indirect ownership, interest or title to such Inventory, including, without limitation, as a result of any retention of title arrangement in place with any supplier, or (ii) be indicated on any purchase order or invoice with respect to such Inventory as having or purporting to have an interest therein;
(e) which constitutes xxxx-and-hold goods, goods that are returned or marked for return, repossessed goods, defective or damaged goods, goods held on consignment, or goods which are not of a type held for sale in the ordinary course of business;
(f) which is not located in the United States of America (in the case of Domestic Loan Parties), Canada (in the case of Canadian Loan Parties) or any European Eligible Jurisdiction (in the case of European Borrowers), or is in transit with a common carrier from vendors and suppliers, provided that, Inventory of the Domestic Loan Parties and Canadian Loan Parties in transit from vendors and suppliers may be included as eligible ("Eligible In-Transit Inventory") pursuant to this clause (f) so long as (i) the Administrative Agent shall have received (1) a true and correct copy of the xxxx of lading and other shipping documents for such Inventory, (2) the applicable Loan Party has title to the Inventory, (3) evidence of satisfactory casualty insurance naming the Administrative Agent as loss payee and otherwise covering such risks as the Administrative Agent may reasonably request, and (4) if the xxxx of lading is (A) non-negotiable and the Inventory is in transit within the United States or Canada, a duly executed Collateral Access Agreement from the applicable customs broker for such Inventory or (B) negotiable, and the Inventory is on the water in transit to the United States or Canada, unless otherwise determined by the Administrative Agent in its sole discretion, confirmation that the xxxx is issued in the name of the Loan Party and consigned to the order of the Administrative Agent, and an acceptable agreement has been executed with such Loan Party's customs broker, in which the customs broker agrees that it holds the negotiable xxxx as agent for the Administrative Agent and has granted the Administrative Agent access to the Inventory, (ii) the common carrier is not an Affiliate of the applicable vendor or supplier and (iii) the customs broker is not an Affiliate of any Loan Party;
(g) which is located in any location leased by such Loan Party unless the lessor has delivered to the Administrative Agent a Collateral Access Agreement or, with respect to any such location for which Administrative Agent does not receive a Collateral Access Agreement, a Reserve equal to three months' rent, charges, and other amounts due or to become due with respect to such facility has been established by the Administrative Agent in its Permitted Discretion;
(h) which is located in any third party warehouse or is in the possession of a bailee (other than a third party processor) and is not evidenced by a Document (other than bills of lading to the extent permitted pursuant to clause (g) above), unless (i) such warehouseman or bailee has delivered to the Administrative Agent a Collateral Access Agreement and such other documentation as the Administrative Agent may require or (ii) an appropriate Reserve has been established by the Administrative Agent in its Permitted Discretion;
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(i) which is being processed offsite at a third party location or outside processor, or is in-transit to or from said third party location or outside processor;
(j) which is a discontinued product or component thereof;
(k) which is the subject of a consignment by such Loan Party as consignor;
(l) which is perishable;
(m) which contains or bears any Intellectual Property rights licensed to such Loan Party unless the Administrative Agent is satisfied that it may sell or otherwise dispose of such Inventory without (i) infringing the rights of such licensor, (ii) violating any contract with such licensor, or (iii) incurring any liability with respect to payment of royalties other than royalties incurred pursuant to sale of such Inventory under the current licensing agreement;
(n) which is not reflected in a current perpetual inventory report of such Loan Party (unless such Inventory is reflected in an acceptable separate report to the Administrative Agent reflecting such Inventory as "in transit" "work in process", "outside processing" or any other category of Inventory acceptable to the Administrative Agent);
(o) for which reclamation rights have been asserted by the seller;
(p) with respect to the Canadian Loan Parties, is considered "30-day goods" within the meaning of the Bankruptcy and Insolvency Act (Canada); or
(q) which the Administrative Agent otherwise determines is unacceptable in its Permitted Discretion.
In the event that Inventory which was previously Eligible Inventory ceases to be Eligible Inventory hereunder, the Company, the Canadian Borrower or any European Borrower, as applicable, shall notify the Administrative Agent thereof (i) within three Business Days of the date the applicable Borrower has obtained knowledge thereof, if any such Inventory has a value (based on the lesser of cost or market, determined on a first-in, first-out basis) in excess of the Dollar Equivalent of $2,000,000 in the aggregate and (ii) in all other cases, on and at the time of submission to the Administrative Agent of the next Borrowing Base Certificate of such Borrower.
"Eligible Inventory Basket" means, as of any date of determination, (a) with respect to the Canadian Borrowing Base, the lesser of the amount yielded by the formula set forth in the immediately following clause (x) and the amount set forth in the immediately following clause (y), with clause (x) being an amount equal to (i) 50% of the Canadian Loan Parties' Eligible Inventory, valued at the lower of cost or market value, determined on a first-in, first-out basis, at such time, minus (ii) (A) 85% multiplied by (B) the Orderly Liquidation Percentage multiplied by (C) the value of the Canadian Loan Parties' Eligible Inventory, valued at the lower of cost or market value, determined on a first-in, first-out basis, at such time and (y) being the amount of $2,000,000; (b) with respect to the European Borrowing Base, the lesser of the amount yielded by the formula set forth in the immediately following clause (x) and the amount set forth in the immediately following clause (y), with clause (x) being an amount equal to (i) 50% of the European Loan Parties' Eligible Inventory, valued at the lower of cost or market value, determined on a first-in, first-out basis, at such time, minus (ii) (A) 85% multiplied by (B) the Orderly Liquidation Percentage multiplied by (C) the value of the European Loan Parties' Eligible Inventory, valued at the lower of cost or market value, determined on a first-in, first-out basis, at such time and (y) being the amount of $5,000,000; and (c) with respect the Domestic Borrowing Base, the lesser of the amount yielded by the formula set forth in the immediately following clause (x) and the amount set forth in the immediately following clause (y), with clause (x) being an amount equal to (i) 50% of the Domestic Loan Parties' Eligible Inventory, valued at the
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lower of cost or market value, determined on a first-in, first-out basis, at such time, minus (ii) (A) 85% multiplied by (B) the Orderly Liquidation Percentage multiplied by (C) the value of the Domestic Loan Parties' Eligible Inventory, valued at the lower of cost or market value, determined on a first-in, first-out basis, at such time and (y) being the amount of $18,000,000.
"Environmental Laws" means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the management, release or threatened release of any Hazardous Material or to health and safety matters.
"Environmental Liability" means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of any Loan Party directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.
"Equipment" has the meaning specified in the Domestic Security Agreement.
"Equity Interests" means shares of capital stock, share capital, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest.
"ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time.
"ERISA Affiliate" means any trade or business (whether or not incorporated) that, together with any Loan Party, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code.
"ERISA Event" means (a) any "reportable event", as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30‑day notice period is waived); (b) the existence with respect to any Plan of an "accumulated funding deficiency" (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by any Loan Party or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by any Loan Party or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by any Loan Party or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by any Loan Party or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from any Loan Party or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.
"Euro" or "€" means the single currency of the Participating Member States.
"Euro Loan" means any Loan denominated in Euros.
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"Eurodollar", when used in reference to any Dollar Loan, Dollar Borrowing, Euro Loan, Euro Borrowing, Sterling Loan or Sterling Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO Rate.
"European Agent" means X.X. Xxxxxx Europe Limited, in its capacity as agent and security trustee for the European Revolving Lenders hereunder.
"European Availability" means, with respect to the European Borrowers, at any time, an amount equal to (a) the lesser of (i) the total European Revolving Subcommitment of all European Revolving Lenders and (ii) the European Borrowing Base minus (b) the total European Revolving Exposure of all European Revolving Lenders.
"European Availability Period" means the period from and including the European Effective Date to but excluding the Maturity Date.
"European Borrower" and "European Borrowers" means individually or collectively, as required by the context, in each case upon delivery of a European Borrower Joinder Agreement on or after the European Effective Date, one or more of the following Subsidiaries of the Company as designated by the Company: (i) Xxxxx Xxxxxxxx Limited, a company incorporated in England and Wales with company number 0725298, Supply Technologies (UKG) Limited, a company incorporated under the laws of Scotland, Supply Technologies (IRLG) Limited, a company incorporated under the laws of Ireland, Ajax Tocco International Limited, a company incorporated in England and Wales with company number 02676033, and/or Apollo Aerospace Components limited, a company incorporated in England and Wales with a company number 02083500; and (ii) such other Subsidiaries of the Company incorporated in any legal jurisdiction of the United Kingdom or incorporated in Ireland and reasonably acceptable to the Administrative Agent.
"European Borrower Joinder Agreement" means a joinder agreement in substantially the form of Exhibit C.
"European Borrowing Base" means, at any time, with respect to the European Borrowers, the sum of (a) 85% of the European Borrowers' Eligible Accounts at such time, plus (b) the lesser of (i) the sum of (A) 85% multiplied by (B) the Orderly Liquidation Percentage multiplied by (C) the value of the European Borrowers' Eligible Inventory, valued at the lower of cost or market value, determined on a first-in, first-out basis, at such time plus the applicable Eligible Inventory Basket, if a positive number, or (ii) the European Inventory Sublimit, minus (c) Reserves related to such European Borrowers. The Administrative Agent may, in its Permitted Discretion, reduce the advance rates set forth above, adjust Reserves or sublimits, or reduce one or more of the other elements used in computing the European Borrowing Base. The European Borrowing Base shall be calculated and reported in Dollars.
"European Borrowing Base Certificate" means a certificate, signed and certified as accurate and complete by a Financial Officer of the Borrower Representative in substantially the form of Exhibit D-3 or another form which is acceptable to the Administrative Agent in its Permitted Discretion, reflecting the European Borrowing Base.
"European Collateral Documents" means, collectively, the agreements and documents granting a Lien to the European Agent, for the benefit of the European Agent and the European Revolving Lenders, upon the Collateral of the European Loan Parties as security for payment of all or any portion of the Foreign Obligations.
"European Collection Account" has the meaning assigned to the term "Cash Management Account" in the European Collateral Documents.
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"European Commercial LC Exposure" means, at any time, the sum of (a) the Dollar Equivalent of the aggregate undrawn amount of all outstanding commercial European Letters of Credit at such time plus (b) the Dollar Equivalent of the aggregate amount of all European LC Disbursements relating to commercial European Letters of Credit that have not yet been reimbursed by or on behalf of any European Borrower at such time. The European Commercial LC Exposure of any European Revolving Lender at any time shall be its Applicable Percentage of the total European Commercial LC Exposure at such time.
"European Effective Date" means the first date after the Effective Date on which the conditions specified in Sections 4.02, 4.04 and 4.05 are all satisfied (or waived in accordance with Section 9.02).
"European Eligible Jurisdictions" means the jurisdictions set forth on Schedule 1.01(A).
"European Inventory Sublimit" means an amount equal to the Dollar Equivalent of $7,000,000.
"European Issuing Bank" means X.X. Xxxxxx Europe Limited or JPMorgan Chase Bank, N.A., in each case in its capacity as the issuer of European Letters of Credit hereunder and its successors in such capacity as provided in Section 2.06(i). The European Issuing Bank may, in its discretion, arrange for one or more European Letters of Credit to be issued by Affiliates of the European Issuing Bank, in which case the term "European Issuing Bank" shall include any such Affiliate with respect to European Letters of Credit issued by such Affiliate.
"European LC Collateral Account" has the meaning assigned to such term in Section 2.06(j).
"European LC Disbursement" means a payment made by the European Issuing Bank pursuant to a European Letter of Credit.
"European LC Exposure" means, at any time the sum of the European Commercial LC Exposure and the European Standby LC Exposure. The European LC Exposure of any European Revolving Lender at any time shall be its Applicable Percentage of the total European LC Exposure at such time.
"European Letter of Credit" means any letter of credit or bank guarantee issued pursuant to this Agreement upon the application of any European Borrower (or the Borrower Representative, on behalf of a European Borrower).
"European Loan Guarantor" means each Domestic Loan Party, European Loan Party and Canadian Loan Party, and any other Person that has become or now or hereafter becomes a party to the Loan Guaranty pursuant to a joinder or by executing a separate Loan Guaranty in each case that guarantees all or any portion of the Foreign Obligations, together with their successors and assigns.
"European Loan Parties" means each European Borrower; and "European Loan Party" means any one of them.
"European Obligations" means all unpaid principal of and accrued and unpaid interest on the European Revolving Loans, all European LC Exposure, all European Swingline Loans, all European Protective Advances, all European Overadvances, all Banking Services Obligations of the European Loan Parties, all Swap Obligations of the European Loan Parties, and all expenses, reimbursements, indemnities and other obligations of the European Loan Parties to the European Revolving Lenders, the Agents, the Issuing Banks or any indemnified party arising under the Loan Documents.
"European Overadvance" has the meaning assigned to such term in Section 2.05(b).
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"European Protective Advance" has the meaning assigned to such term in Section 2.04.
"European Revolving Exposure" means, with respect to any European Revolving Lender at any time, the sum of the Dollar Equivalent of the outstanding principal amount of such European Revolving Lender's European Revolving Loans and its European LC Exposure plus an amount equal to its Applicable Percentage of the Dollar Equivalent of the aggregate principal amount of European Swingline Loans outstanding at such time plus an amount equal to its Applicable Percentage of the Dollar Equivalent of the aggregate principal amount of European Overadvances outstanding at such time plus an amount equal to its Applicable Percentage of the Dollar Equivalent of the aggregate principal amount of European Protective Advances outstanding at such time.
"European Revolving Lender" means each Lender with a European Revolving Subcommitment or, if the European Revolving Subcommitments have terminated or expired, a Lender with European Revolving Exposure.
"European Revolving Loans" means the Loans extended by the European Revolving Lenders to the European Borrowers pursuant to Section 2.01(c).
"European Revolving Subcommitment" means, during the European Availability Period, with respect to each European Revolving Lender, the commitment, if any, of such European Revolving Lender to make European Revolving Loans and to acquire participations in European Letters of Credit, European Overadvances, European Protective Advances and European Swingline Loans hereunder, expressed as an amount representing the maximum possible aggregate amount of such European Revolving Lender's European Revolving Exposure hereunder, as such commitment may be reduced or increased from time to time pursuant to (a) Section 2.09 and (b) assignments by or to such European Revolving Lender pursuant to Section 9.04. The initial amount of each European Revolving Lender's European Revolving Subcommitment is set forth on the Commitment Schedule, or in the Assignment and Assumption pursuant to which such European Revolving Lender shall have assumed its European Revolving Subcommitment, as applicable. The initial aggregate amount of the European Revolving Lenders' European Revolving Subcommitment is the Dollar Equivalent of $10,000,000. The European Revolving Subcommitments are subcommitments of the Domestic Revolving Commitments and do not represent additional credit exposure.
"European Standby LC Exposure" means, at any time, the sum of (a) the Dollar Equivalent of the aggregate undrawn amount of all outstanding standby European Letters of Credit at such time plus (b) the Dollar Equivalent of the aggregate amount of all European LC Disbursements relating to standby European Letters of Credit that have not yet been reimbursed by or on behalf of the European Borrower at such time. The European Standby LC Exposure of any European Revolving Lender at any time shall be its Applicable Percentage of the total European Standby LC Exposure at such time.
"European Subsidiary" means each direct or indirect Subsidiary of the Company (other than a European Borrower) that is (i) incorporated in any jurisdiction of the United Kingdom or (ii) incorporated in Ireland.
"European Swingline Lender" means JPMorgan Chase Bank, N.A., in its capacity as lender of European Swingline Loans hereunder.
"European Swingline Loan" has the meaning assigned to such term in Section 2.05(a).
"Event of Default" has the meaning assigned to such term in Article VII.
"Excluded Subsidiary" means Park Avenue Travel Ltd., an Ohio corporation and Lallegro, Inc., a Delaware corporation.
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"Excluded Swap Obligation" means, with respect to any guarantor of all or any portion of the Obligations, any Swap Obligation if, and to the extent that, all or a portion of the Guarantee of such guarantor of, or the grant by such guarantor of a security interest to secure, such Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor's failure for any reason to constitute an ECP at the time the Guarantee of such guarantor or the grant of such security interest becomes or would become effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guarantee or security interest is or becomes illegal.
"Excluded Taxes" means, with respect to any Agent, any Lender, any Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of any Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the United States of America, or by the jurisdiction under the laws of which such recipient is organized or is resident or carries on business through a permanent establishment located therein or in which its principal office is located or, in the case of any Lender, in which its applicable lending office is located, (b) any branch profits taxes imposed by the United States of America or any similar tax imposed by any other jurisdiction in which any Borrower is located and (c) in the case of a Foreign Lender (other than an assignee pursuant to a request by any Borrower under Section 2.19(b)), any withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or designates a new lending office) or is attributable to such Foreign Lender's failure to comply with Section 2.17(f), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts from the Borrowers with respect to such withholding tax pursuant to Section 2.17(a).
"Ex-Im Availability" means, with respect to the Ex-Im Borrowers, at any time, an amount equal to (a) the lesser of (i) the total Ex-Im Revolving Subcommitment of the Ex-Im Revolving Lender and (ii) the Export-Related Borrowing Base minus (b) the total Ex-Im Revolving Exposure relating to Ex-Im Revolving Loans minus (i) 25% of the total Ex-Im LC Exposure.
"Ex-Im Availability Period" means the period from and including the Ex-Im Effective Date to but excluding the earlier of the Maturity Date or the Commitment Termination Date (as defined in the Fast Track Loan Agreement).
"Ex-Im Bank" means the Export-Import Bank of the United States of America.
"Ex-Im Bank Borrower Agreement" means an agreement executed by the Ex-Im Borrowers in favor of Ex-Im Bank and the Ex-Im Revolving Lender, in the form attached hereto as Exhibit F-1, together with all amendments, modifications and supplements thereto, including without limitation the Ex-Im Borrower Agreement Supplement in the form attached hereto as Exhibit F-2.
"Ex-Im Bank Documents" means, collectively, the Ex-Im Bank Guarantee, any Loan Authorization Agreement between the Ex-Im Revolving Lender and Ex-Im Bank and the Ex-Im Bank Borrower Agreement.
"Ex-Im Bank Guarantee" means that certain Master Guarantee Agreement and any other guarantee now or hereafter executed by Ex-Im Bank in favor of the Ex-Im Revolving Lender, in form and substance reasonably satisfactory to the Ex-Im Revolving Lender, together with all amendments, modifications and supplements thereto.
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"Ex-Im Borrowers" means, individually or collectively, the Company and the Ex-Im Credit Party.
"Ex-Im Borrowing Base Certificate" means a certificate, signed and certified as accurate and complete by a Financial Officer of the Borrower Representative in a form which is acceptable to the Administrative Agent in its sole discretion, reflecting the Export-Related Borrowing Base.
"Ex-Im Credit Party" means AJAX Tocco Magnethermic Corporation, an Ohio corporation.
"Ex-Im Commercial LC Exposure" means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding commercial Ex-Im Letters of Credit at such time plus (b) the aggregate amount of all Ex-Im LC Disbursements relating to commercial Ex-Im Letters of Credit that have not yet been reimbursed by or on behalf of the Ex-Im Borrowers at such time. The Ex-Im Commercial LC Exposure of the Ex-Im Revolving Lender at any time shall be its Applicable Percentage of the total Ex-Im Commercial LC Exposure at such time.
"Ex-Im Effective Date" means the first date after the Effective Date on which the conditions specified in Sections 4.02, 4.06 and 4.07 are all satisfied (or waived in accordance with Section 9.02).
"Ex-Im Issuing Bank" means JPMorgan Chase Bank, N.A., in its capacity as the issuer of Ex-Im Letters of Credit, and its successors in such capacity as provided in Section 2.06(i). The Ex-Im Issuing Bank may, in its discretion, arrange for one or more Ex-Im Letters of Credit to be issued by Affiliates of the Ex-Im Issuing Bank, in which case the term "Ex-Im Issuing Bank" shall include any such Affiliate with respect to Ex-Im Letters of Credit issued by such Affiliate.
"Ex-Im LC Collateral Account" has the meaning assigned to such term in Section 2.06(j).
"Ex-Im LC Disbursement" means a payment made by the Ex-Im Issuing Bank pursuant to an Ex-Im Letter of Credit.
"Ex-Im LC Exposure" means, at any time, the sum of the Ex-Im Commercial LC Exposure and the Ex-Im Standby LC Exposure. The Ex-Im LC Exposure of the Ex-Im Revolving Lender at any time shall be its Applicable Percentage of the total Ex-Im LC Exposure at such time.
"Ex-Im Letter of Credit" means any letter of credit (other than a Warranty Letter of Credit, as defined in the Ex-Im Bank Borrower Agreement) issued by the Ex-Im Issuing Bank upon the application of an Ex-Im Borrower (or the Borrower Representative, on behalf of such Ex-Im Borrower).
"Ex-Im Obligations" means all unpaid principal of and accrued and unpaid interest on the Ex-Im Revolving Loans, all Ex-Im LC Exposure and all expenses, reimbursements, indemnities and other obligations of the Ex-Im Borrowers to the Ex-Im Revolving Lender, the Ex-Im Participants, the Agents, the Issuing Banks or any indemnified party arising under the Ex-Im Bank Borrower Agreement, the Fast Track Loan Agreement, and the Loan Documents, in respect of the Ex-Im Revolving Loans or the Ex-Im LC Exposure. The Ex-Im Obligations shall be the "Loan Facility Obligations" referred to in the Ex-Im Bank Borrower Agreement.
"Ex-Im Participant" means each Lender hereunder, with respect to its participation in Ex-Im Revolving Exposure.
"Ex-Im Revolving Lender" means JPMorgan Chase Bank, N.A., as Lender under the Fast Track Loan Agreement.
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"Ex-Im Revolving Exposure" means the sum of the outstanding principal amount of the Ex-Im Revolving Loans and the Ex-Im LC Exposure.
"Ex-Im Revolving Loans" means the export-related Loans extended by the Ex-Im Revolving Lender to the Ex-Im Borrowers pursuant to Section 2.01(d) and the Fast Track Loan Agreement.
"Ex-Im Revolving Subcommitments" means, (a) with respect to the Ex-Im Revolving Lender, the commitment, if any, of the Ex-Im Revolving Lender to make Ex-Im Revolving Loans and to acquire participations in Ex-Im Letters of Credit hereunder, expressed as an amount representing the maximum possible aggregate amount of the Ex-Im Revolving Lender's Ex-Im Revolving Exposure hereunder, as such subcommitment may be reduced from time to time pursuant to assignments by or to the Ex-Im Revolving Lender pursuant to Section 9.04 and (b) with respect to each Ex-Im Participant, the commitment, if any, of such Ex-Im Participant to acquire participations in Ex-Im Revolving Loans and Ex-Im Letters of Credit hereunder, expressed as an amount representing the maximum possible aggregate amount of such Ex-Im Participants' participation in the Ex-Im Revolving Exposure hereunder, as such subcommitment may be reduced from time to time pursuant to assignments by or to such Ex-Im Participant pursuant to Section 9.04. The initial amount of the Ex-Im Revolving Lender's and each Ex-Im Participants Ex-Im Revolving Subcommitment is set forth on the Commitment Schedule, or in the Assignment and Assumption pursuant to which the Ex-Im Revolving Lender or such Ex-Im Participant shall have assumed its Ex-Im Revolving Subcommitment, as applicable. The initial aggregate amount of the Ex-Im Revolving Lender's Ex-Im Revolving Subcommitment is $25,000,000. The Ex-Im Revolving Subcommitments are subcommitments of the Domestic Revolving Commitments and do not represent additional credit exposure.
"Ex-Im Security Agreement" means that certain Amended and Restated Security Agreement dated as of the Fifth Restated Closing Date, among the Ex-Im Borrowers, the other Domestic Loan Parties and the Ex-Im Revolving Lender.
"Ex-Im Standby LC Exposure" means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding standby Ex-Im Letters of Credit at such time plus (b) the aggregate amount of all Ex-Im LC Disbursements relating to standby Ex-Im Letters of Credit that have not yet been reimbursed by or on behalf of the Ex-Im Borrowers at such time. The Ex-Im Standby LC Exposure of the Ex-Im Revolving Lender at any time shall be its Applicable Percentage of the total Ex-Im Standby LC Exposure at such time.
"Existing Canadian Revolving Loans" means the Canadian Revolving Loans advanced to the Canadian Borrower under the Existing Credit Agreement.
"Existing Credit Agreement" means the certain Fifth Amended and Restated Credit Agreement dated as of the Fifth Restated Closing Date among the Company, Canadian Borrower, certain of the other Loan Parties, certain of the Lenders, JPMorgan Chase Bank, N.A., as Administrative Agent, and JPMorgan Bank, N.A., Toronto Branch, as Canadian Agent, as amended or modified through the Effective Date.
"Existing Domestic Revolving Loans" means the Domestic Revolving Loans advanced to the Company under the Existing Credit Agreement.
"Existing Lender" means a Person holding loans and commitments under the Existing Credit Agreement.
"Existing Term Loans" means the Term Loans advanced to the Company under the Existing Credit Agreement.
"Export-Related Accounts" means all Export-Related Accounts Receivable (as defined in the Ex-Im Bank Borrower Agreement) of the Ex-Im Credit Party.
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"Export-Related Borrowing Base" means, at any time, with respect to the Ex-Im Credit Party, the Export-Related Borrowing Base as defined in the Ex-Im Bank Borrower Agreement. The Ex-Im Revolving Lender may, in its Permitted Discretion, reduce the advance rates set forth in the Export-Related Borrowing Base, adjust Reserves or reduce one or more of the other elements used in computing the Export-Related Borrowing Base. For the avoidance of doubt, the parties acknowledge and agree that Export-Related Accounts that are subject to contractual restrictions on the ability of the Ex-Im Credit Party to grant a security interest in such Export-Related Accounts shall not be treated as eligible for purposes of calculating the Export-Related Borrowing Base.
"Export-Related Collateral" has the meaning assigned to such term in the Fast Track Loan Agreement.
"Export-Related Inventory" means all Export-Released Inventory (as defined in the Ex-Im Bank Borrower Agreement) of the Ex-Im Credit Party.
"Export Order" has the meaning assigned to such term in the Ex-Im Bank Borrower Agreement.
"Fast Track Loan Agreement" means the Fast Track Export Loan Agreement among the Ex-Im Borrowers, the other Domestic Loan Parties and the Ex-Im Revolving Lender, in form reasonably satisfactory to the Administrative Agent and the Ex-Im Revolving Lender, together with all amendments, modifications and supplements thereto.
"Federal Funds Effective Rate" means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.
"Fifth Restated Closing Date" means March 23, 2012.
"Financial Officer" means the chief financial officer, principal accounting officer, treasurer or controller of the Company or any Loan Party, as the context indicates.
"Financial Support Direction" means a financial support direction issued by the Pensions Regulator under section 43 of the Pensions Xxx 0000 (U.K.).
"Fixed Asset Loanable Value" means, at any time, with respect to the Domestic Loan Parties, the sum of (a) the greater of (i) 100% of the appraised net forced liquidation value of Eligible Equipment or (ii) 85% of the appraised net orderly liquidation value of Eligible Equipment minus (b) the Fixed Assets Reserves. The Administrative Agent may, in its Permitted Discretion, reduce the advance rates set forth above, adjust Fixed Asset Reserves or reduce one or more of the other elements used in computing the Fixed Asset Loanable Value.
"Fixed Asset Reserves" means any and all reserves which the Administrative Agent deems necessary in its Permitted Discretion as a result of events, contingencies or risks that adversely affect the Collateral, its value or the amount that might be received by the Administrative Agent from the sale or other disposition of or realization upon, such Collateral, without duplication of any other reserve or adjustment made under the definition of Eligible Equipment, in the Administrative Agent's Permitted Discretion, to maintain with respect to Eligible Equipment.
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"Foreign Collateral Documents" means, collectively, the Canadian Collateral Documents and the European Collateral Documents.
"Foreign Lender" means any Lender that is organized under the laws of a jurisdiction other than that in which a Borrower is located. For purposes of this definition, the United States of America, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction, Canada and each Province and Territory thereof shall be deemed to constitute a single jurisdiction and the countries comprising the United Kingdom shall be deemed to constitute a single jurisdiction.
"Foreign Subsidiary" means any Subsidiary of the Company other than a Domestic Subsidiary.
"Foreign Obligations" means all Canadian Obligations and all European Obligations.
"Funding Accounts" means the deposit account(s) of each of the Company, the Canadian Borrower and each European Borrower to which the Agents are authorized by such Borrower to transfer the proceeds of any Borrowings requested or authorized pursuant to this Agreement.
"GAAP" means generally accepted accounting principles in the United States of America.
"Governmental Authority" means the government of the United States of America, Canada, the United Kingdom, Ireland and any other nation or any political subdivision thereof, whether state, provincial or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity, whether national or supranational, exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.
"Guarantee" of or by any Person (the "guarantor") means any obligation, contingent or otherwise, of the guarantor guaranteeing, indemnifying against or having the economic effect of guaranteeing or indemnifying against any Indebtedness or other obligation of any other Person (the "primary obligor") in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; provided, that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business.
"Guaranteed Obligations" means the Domestic Guaranteed Obligations, the Canadian Guaranteed Obligations or the European Guaranteed Obligations, as each term is defined in Section 10.01.
"Hazardous Materials" means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law.
"Hubbel Accounts" means Accounts owing to Supply Technologies LLC by Hubbel.
"ILS" means Supply Technologies LLC, an Ohio limited liability company.
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"Impacted Interest Period" has the meaning assigned to such term in the definition of "LIBO Rate".
"Indebtedness" of any Person means, without duplication, (a) all obligations of such Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person upon which interest charges are customarily paid, (d) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person, (e) all obligations of such Person in respect of the deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course of business), (f) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, (g) all Guarantees by such Person of Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty (excluding any bank guarantees or similar transactions issued in favor of any Foreign Subsidiary), (j) all obligations, contingent or otherwise, of such Person in respect of bankers' acceptances, (k) obligations under any liquidated earn-out, (l) all Swap Obligations of such Person, including Net Xxxx-to-Market Exposure, (m) all obligations of such Person under any Sale and Leaseback Transaction, and (n) any other Off-Balance Sheet Liability. The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor 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 that such Person is not liable therefor.
"Intellectual Property" has the meaning assigned to such term in the Domestic Security Agreement.
"Indemnified Taxes" means Taxes other than Excluded Taxes.
"Intercompany Notes" has the meaning assigned to such term in Section 6.01.
"Interest Election Request" means a request by the Borrower Representative to convert or continue a Borrowing in accordance with Section 2.08.
"Interest Payment Date" means (a) with respect to any CBFR Loan (other than a Domestic Swingline Loan), any USBR Loan (other than a Canadian Swingline Loan) or CP Loan (other than a Canadian Swingline Loan) or any Overnight LIBO Rate Loan (other than a European Swingline Loan), the first Business Day in each calendar month and the Maturity Date, (b) with respect to any CDOR Loan or Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a CDOR Borrowing or Eurodollar Borrowing with an Interest Period of more than three months' duration, each day prior to the last day of such Interest Period that occurs at intervals of three months' duration after the first day of such Interest Period and the Maturity Date, and (c) with respect to any Swingline Loan, the day that such Swingline Loan is required to be repaid and the Maturity Date.
"Interest Period" means (a) with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three or six months thereafter, as the Borrower Representative may elect and (b) with respect to any CDOR Rate Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three or six months thereafter, as the Borrower Representative may elect; provided, that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless, in the case of a Eurodollar Borrowing only, such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day and (ii) any Interest
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Period pertaining to a Eurodollar Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and, in the case of a CDOR Rate Borrowing or a Eurodollar Borrowing, thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.
"Interpolated Rate" means, at any time, for any Impacted Interest Period, the rate per annum (rounded upward to four decimal places) reasonably determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBO Screen Rate for the longest period (for which the LIBO Screen Rate is available) that is shorter than the Impacted Interest Period and (b) the LIBO Screen Rate for the shortest period (for which the LIBO Screen Rate is available) that exceeds the Impacted Interest Period, in each case, at such time.
"Inventory" has the meaning assigned to such term in the Domestic Security Agreement.
"Irish Intercompany Subordinated Indebtedness" means the unsecured Indebtedness owing by Fluid Routing Solutions, LLC to POITC, pursuant to the Irish Intercompany Subordinated Note, which shall (i) mature no earlier than the date that is six months after the Maturity Date (as the same may be extended from time to time), and (ii) at all times be subordinated to the Secured Obligations pursuant to the Irish Intercompany Subordination Agreement.
"Irish Intercompany Subordinated Note" means that certain Intercompany Subordinated Note issued by Fluid Routing Solutions, LLC to POITC on March 23, 2012 in the original principal amount of $30,000,000, as in effect on the date hereof or as otherwise amended, restated, supplemented or otherwise modified in accordance with the Irish Intercompany Subordination Agreement. The outstanding principal balance under the Irish Intercompany Subordinated Note as of the Effective Date is $13,114,121.
"Irish Intercompany Subordination Agreement" means that certain Subordination and Intercreditor Agreement, dated as of March 23, 2012, by and among the Administrative Agent, POITC and the Loan Parties.
"Issuing Bank" means the Canadian Issuing Bank, the European Issuing Bank, the Ex-Im Issuing Bank or the Domestic Issuing Bank, as the context indicates.
"ITA" means the Income Tax Xxx 0000 (U.K.).
"JCI Accounts" means Accounts owing to Supply Technologies LLC by Xxxxxxx Controls, Inc. or one of its Subsidiaries or Affiliates identified on Schedule 1 to the Xxxxx Fargo Purchase Agreement (JCI), as in effect on August 10, 2012.
"Joinder Agreement" has the meaning assigned to such term in Section 5.13.
"JPMC Purchaser" means JPMorgan Chase Bank, N.A., in its capacity as Investor Agent under the JPMC Purchase Agreement.
"JPMC Purchase Agreement " means the Receivables Purchase Agreement dated January 6, 2012 between Supply Technologies LLC and JPMC Purchaser.
"LC Disbursement" means a Canadian LC Disbursement, a European LC Disbursement, an Ex-Im LC Disbursement or a Domestic LC Disbursement.
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"LC Exposure" means, collectively, the Canadian LC Exposure, the European LC Exposure, the Ex-Im LC Exposure and the Domestic LC Exposure.
"Lenders" means the Persons listed on the Commitment Schedule and any other Person that shall have become a party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption and specifically includes the Ex-Im Revolving Lender. Unless the context otherwise requires, the term "Lenders" includes each Swingline Lender.
"Letter of Credit" means a Domestic Letter of Credit, an Ex-Im Letter of Credit, a Canadian Letter of Credit or a European Letter of Credit.
"LIBO Rate" means, with respect to any Eurodollar Borrowing for any applicable Interest Period, the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other Person that takes over the administration of such rate) for the relevant currency and for a period equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page or screen that displays such rate in place of Reuters, or if such successor or substitute page or screen ceases to be available, on the appropriate page of such other information service that publishes such rate applicable to the relevant currency as shall be reasonably selected by the Administrative Agent or the European Agent, as applicable, from time to time in its reasonable discretion (the "LIBO Screen Rate") at approximately 11:00 a.m., London time, two (2) Business Days prior (or the same Business Day for Sterling) to the commencement of such Interest Period; provided that, (x) if any LIBO Screen Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement and (y) if the LIBO Screen Rate shall not be available at such time for a period equal in length to such Interest Period (an "Impacted Interest Period"), then the LIBO Rate shall be the Interpolated Rate at such time, subject to Section 2.14 in the event that the Administrative Agent shall conclude that it shall not be possible to determine such Interpolated Rate (which conclusion shall be conclusive and binding absent manifest error); provided, that, if any Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.
"LIBO Screen Rate" has the meaning assigned to such term in the definition of "LIBO Rate".
"Lien" means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge, security assignment or security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities.
"Loan Authorization Agreement" has the meaning assigned to such term in the Ex-Im Bank Borrower Agreement.
"Loan Documents" means this Agreement, any promissory notes issued pursuant to the Agreement, any Letter of Credit applications, the Collateral Documents, the Loan Guaranty, the Ex-Im Bank Borrower Agreement, the Ex-Im Bank Guarantee, the Fast Track Loan Agreement and all other agreements, instruments, documents and certificates executed and delivered to, or in favor of, any Agent, the Ex-Im Revolving Lender or any other Lender and including all other pledges, powers of attorney, consents, assignments, contracts, notices, letter of credit agreements and all other written matter whether heretofore, now or hereafter executed by or on behalf of any Loan Party, or any employee of any Loan Party, and delivered to any Agent, the Ex-Im Revolving Lender or any other Lender in connection with the Existing Credit Agreement or this Agreement or the transactions contemplated thereby or hereby. Any reference in the Agreement or any other Loan Document to a Loan Document shall include all appendices, exhibits or
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schedules thereto, and all amendments, restatements, supplements or other modifications thereto, and shall refer to the Agreement or such Loan Document as the same may be in effect at any and all times such reference becomes operative.
"Loan Guarantor" means a Domestic Loan Guarantor, a Canadian Loan Guarantor or a European Loan Guarantor, as applicable, together with its respective successors and assigns.
"Loan Guaranty" means Article X of this Agreement and each separate Guarantee, in form and substance satisfactory to the Administrative Agent, heretofore, now or hereafter delivered by a Loan Guarantor, including each Guarantee executed by each Loan Guarantor that is a Foreign Subsidiary (which Guarantee shall be governed by the laws of the country in which such Foreign Subsidiary is located), as it may be amended or modified and in effect from time to time.
"Loan Parties" means the Borrowers, the other Domestic Loan Parties, the other Canadian Loan Parties, the other European Loan Parties and any other Person who becomes a party to this Agreement pursuant to a Joinder Agreement and their successors and assigns.
"Loans" means the loans and advances made by the Lenders pursuant to this Agreement, including Domestic Revolving Loans, Canadian Revolving Loans, European Revolving Loans, Ex-Im Revolving Loans, Term Loans, Swingline Loans, Overadvances and Protective Advances.
"Material Adverse Effect" means a material adverse effect on (a) the business, assets, operations or financial condition of the Loan Parties as a whole, (b) the ability of the Loan Parties, taken as a whole, to perform any of their obligations under the Loan Documents, (c) a material portion of the Collateral, or any Agent's Liens (on behalf of itself and the applicable Lenders), or Ex-Im Revolving Lender's Liens, on the Collateral or the priority of such Liens, or (d) the rights of or benefits available to any Agent, the Ex-Im Revolving Lender, any Issuing Bank or any Lender thereunder.
"Material Indebtedness" means Indebtedness (other than the Loans and Letters of Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the Loan Parties in an aggregate principal amount exceeding $10,000,000.
"Maturity Date" means July 31, 2019 or any earlier date on which the Commitments are reduced to zero or otherwise terminated pursuant to the terms hereof.
"Maximum Liability" has the meaning assigned to such term in Section 10.10.
"Maximum Availability Amount" means an amount at any time equal to the sum of (a) $28,750,000 plus (b) 12.5% of the aggregate increases of the Domestic Revolving Commitment effected as of such time pursuant to Section 2.09(d).
"Moody's" means Xxxxx'x Investors Service, Inc.
"Multiemployer Plan" means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.
"Net Xxxx-to-Market Exposure" of a Person means, as of any date of determination, the excess (if any) of all unrealized losses over all unrealized profits of such Person arising from Swap Agreements. As used in this definition, "unrealized losses" means the fair market value of the cost to such Person of replacing such Swap Agreement as of the date of determination (assuming the Swap Agreement were to be terminated as of that date), and "unrealized profits" means the fair market value of the gain to such Person of replacing such Swap Agreement as of the date of determination (assuming such Swap Agreement were to be terminated as of that date).
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"Net Proceeds" means, with respect to any event, (a) the cash proceeds received in respect of such event including (i) any cash received in respect of any non-cash proceeds (including any cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or purchase price adjustment receivable or otherwise, but excluding any interest payments), but only as and when received, (ii) in the case of a casualty, insurance proceeds and (iii) in the case of a condemnation or similar event, condemnation awards and similar payments, net of (b) the sum of (i) all reasonable fees and out-of-pocket expenses paid to third parties (other than Affiliates) in connection with such event, (ii) in the case of a sale, transfer or other disposition of an asset (including pursuant to a Sale and Leaseback Transaction or a casualty or a condemnation or similar proceeding), the amount of all payments required to be made as a result of such event to repay Indebtedness (other than Loans) secured by such asset or otherwise subject to mandatory prepayment as a result of such event and (iii) the amount of all taxes paid (or reasonably estimated to be payable) and the amount of any reserves established to fund contingent liabilities reasonably estimated to be payable that are directly attributable to such event (as determined reasonably and in good faith by a Financial Officer).
"Non-Consenting Lender" has the meaning assigned to such term in Section 9.02(d).
"Non-Paying Guarantor" has the meaning assigned to such term in Section 10.11.
"Obligated Party" has the meaning assigned to such term in Section 10.02.
"Obligations" means all unpaid principal of and accrued and unpaid interest on the Loans, all LC Exposure, all Banking Services Obligations of the Loan Parties, all Swap Obligations of the Loan Parties owing to any Lender, any Agent, the Ex-Im Revolving Lender or any of their Affiliates, all accrued and unpaid fees and all expenses, reimbursements, indemnities and other obligations of the Loan Parties to the Lenders or to any Lender, any Agent, the Ex-Im Revolving Lender, any Issuing Bank or any indemnified party arising under the Loan Documents.
"Off-Balance Sheet Liability" of a Person means (a) any repurchase obligation or liability of such Person with respect to accounts or notes receivable sold by such Person, (b) any indebtedness, liability or obligation under any so-called "synthetic lease" transaction entered into by such Person, or (c) any indebtedness, liability or obligation arising with respect to any other transaction which is the functional equivalent of or takes the place of borrowing but which does not constitute a liability on the balance sheets of such Person (other than operating leases).
"OFS" means Orbian Financial Services II, LLC, in its capacity as purchaser under the OFS Purchase Agreement.
"OFS Purchase Agreement " means the Discount Agreement dated November 21, 2011 between Supply Technologies LLC and OFS.
"Orderly Liquidation Percentage" means, with respect to Inventory or Export-Related Inventory of any Loan Party, (a) the Dollar Equivalent of the net recovery value of such Inventory or Export-Related Inventory, as applicable, divided by (b) the gross value of such Inventory or Export-Related Inventory, as applicable, determined as of the date of most recent appraisal conducted in accordance with customary asset based lending standards pursuant to Section 5.11, by an appraiser acceptable to the Administrative Agent, net of all costs of liquidation thereof.
"Other Taxes" means any and all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement.
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"Overadvance" means a Canadian Overadvance, a European Overadvance or a Domestic Overadvance, as the context indicates; and "Overadvances" means Canadian Overadvances, European Overadvances and Domestic Overadvances, collectively.
"Overnight LIBO Rate" means a rate per annum equal to the London interbank offered rate as administered by ICE Benchmark Administration Limited (or any other Person that takes over the administration of such rate) for overnight deposits in Euros as displayed on the applicable Reuters screen page (currently page LIBOR01) (or, in the event such rate does not appear on a page of the Reuters screen, on the appropriate page of such other information service that publishes such rate as shall be reasonably selected by the Administrative Agent from time to time in its reasonable discretion) at approximately 11:00 a.m., London time, on such day; provided that if an Overnight LIBO Rate shall be less than zero, such rate shall be deemed to be zero for all purposes of this Agreement.
"Participant" has the meaning assigned to such term in Section 9.04.
"Participating Member State" means any member state of the European Union that has the Euro as its lawful currency in accordance with legislation of the European Union relating to economic and monetary union.
"Paying Guarantor" has the meaning assigned to such term in Section 10.11.
"PBGC" means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.
"Pensions Regulator" means the body corporate called the Pensions Regulator established under Part 1 of the Pensions Xxx 0000 (U.K.).
"Permitted Discretion" means a determination made in good faith and in the exercise of reasonable (from the perspective of a secured asset-based lender) credit judgment.
"Permitted Encumbrances" means:
(a) Liens imposed by law for taxes, fees, assessments, or other governmental charges or levies on the property of a Loan Party if such (i) amounts are not at the time delinquent or (ii) do not secure obligations in excess of $250,000, are being contested in compliance with Section 5.04 and a stay of enforcement of such Lien is in effect;
(b) carriers', warehousemen's, mechanics', materialmen's, repairmen's and other like Liens imposed by law, arising in the ordinary course of business and securing obligations that are not overdue by more than 10 days or are being contested in compliance with Section 5.04;
(c) Liens arising out of pledges and deposits made in the ordinary course of business in compliance with workers' compensation, unemployment insurance, old age pensions and other social security or retirement benefits laws or regulations;
(d) Liens arising out of deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business;
(e) easements, zoning restrictions, rights-of-way and similar encumbrances on Real Property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or interfere with the ordinary conduct of business of any Loan Party;
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(f) judgment liens in respect of judgments that do not constitute an Event of Default under clause (k) of Article VII;
(g) statutory Liens in favor of landlords of Real Property leased by a Loan Party; provided, that such Loan Party is not in default with respect to payment of all rent and other material amounts due to such landlord under any lease of such Real Property;
(h) the equivalent of the types of Liens discussed in clauses (a) through (g) above, inclusive, in any foreign jurisdiction in which any Loan Party conducts business; and
(i) licenses of Intellectual Property;
provided that the term "Permitted Encumbrances" shall not include (i) any Lien securing Indebtedness, (ii) any Lien arising under ERISA or Environmental Laws, (iii) any Lien attached to Accounts of any Loan Party (except a Lien of the type described in clause (a) above) or (iv) any Lien attached to Inventory of any Loan Party (except a Lien of the type described in clauses (a), (b) or (g) above).
"Permitted Factoring Accounts" means Accounts owing to a Loan Party and sold to a Permitted Factoring Provider pursuant to a Permitted Factoring Agreement, in each case as disclosed in writing to the Administrative Agent from time to time.
"Permitted Factoring Agreement" means an agreement entered into after the Effective Date, in form and substance satisfactory to the Administrative Agent in its Permitted Discretion, pursuant to which a Loan Party sells Permitted Factoring Accounts to a Permitted Factoring Provider.
"Permitted Factoring Provider" means a financial institution who purchases Permitted Factoring Accounts from a Loan Party pursuant to a Permitted Factoring Agreement.
"Permitted Holders" means (a) Xxxxxx X. Xxxxxxxx and Xxxxxx X. Xxxxxxxx, either of their spouses, lineal descendants, or the probate estate of any such person, (b) any trust, so long as one or more of the foregoing is the beneficiary thereof, and (c) any other corporation, partnership, limited liability company, or other similar entity, all of the shareholders, partners, members, or owners of which are any of the foregoing.
"Permitted Investments" means:
(a) direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, Canada or the United States of America (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States of America), in each case maturing within one year from the date of acquisition thereof;
(b) investments in commercial paper maturing within 270 days from the date of acquisition thereof and having, at such date of acquisition, the highest credit rating obtainable from S&P or from Moody's;
(c) investments in certificates of deposit, banker's acceptances and time deposits maturing within 180 days from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of Canada or the United States of America or any province or state thereof which has a combined capital and surplus and undivided profits of not less than $500,000,000;
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(d) fully collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (a) above and entered into with a financial institution satisfying the criteria described in clause (c) above;
(e) money market funds that (i) comply with the criteria set forth in Securities and Exchange Commission Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by Moody's and (iii) have portfolio assets of at least $5,000,000,000;
(f) money market funds that (i) are money market funds (as defined in National Instrument 81-102 Mutual Funds) that are reporting issuers (as defined in Ontario securities laws) in the Province of Ontario, Canada, (ii) are rated AAA by S&P and Aaa by Moody's and (iii) have portfolio assets of at least $5,000,000,000; and
(g) in the case of any European Loan Party, other investments that are analogous to the foregoing, are of comparable credit quality and are customarily used by companies in the jurisdictions of such Loan Parties for cash management purposes.
"Person" means any natural person, corporation, limited liability company, unlimited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.
"Plan" means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which any Loan Party or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA. For the avoidance of doubt, this definition of Plan excludes any Canadian Plan.
"Pledge Agreements" means each of the Pledge Agreements executed and delivered to the Administrative Agent, for the benefit of the Administrative Agent and the Lenders, to the Canadian Agent, for the benefit of the Canadian Agent and the Canadian Revolving Lenders, to the European Agent, for the benefit of the European Agent and the European Revolving Lenders, or to the Ex-Im Revolving Lender, by Holdings or any Loan Party, on or after June 30, 2007, as the same may heretofore have been and may hereafter be amended, restated or otherwise modified.
"POITC" means Park-Ohio International Treasury Company Limited, an Irish company.
"PPSA" means the Personal Property Security Act (Ontario) (or any successor statute) or similar legislation (including, without limitation, the Civil Code (Quebec)) of any other jurisdiction the laws of which are required by such legislation to be applied in connection with the issue, perfection, enforcement, validity or effect of security interests.
"Prepayment Event" means:
(a) any sale, transfer or other disposition of any property or asset of any Loan Party, including without limitation the sale of Equity Interests of a Subsidiary (including any Designated Subsidiary, but excluding any Excluded Subsidiary), other than dispositions pursuant to Section 6.05(a), Section 6.05(b), Section 6.05(e) with respect to any individual disposition with a fair market value less than $500,000, Section 6.06, Section 6.15(b), Section 6.15(c), Section 6.15(d), Section 6.15(e), Section 6.15(f), Section 6.15(g), Section 6.15(h), Section 6.15(i) or Section 6.15(j);
(b) any casualty or other insured damage to, or any taking under power of eminent domain or by condemnation or similar proceeding of, any property or asset of any Loan Party; or
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(c) the incurrence by any Loan Party of any Indebtedness, other than Indebtedness permitted under Section 6.01.
"Prime Rate" means the rate of interest per annum publicly announced from time to time by Chase or its parent as its prime rate at its offices at 000 Xxxx Xxxxxx xx Xxx Xxxx Xxxx; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective. The Prime Rate is not necessarily the lowest rate charged by Chase to any customer.
"Projections" has the meaning assigned to such term in Section 5.01(f).
"Protective Advance" means a Canadian Protective Advance, European Protective Advance or a Domestic Protective Advance, as the context indicates; and "Protective Advances" means Canadian Protective Advances, European Protective Advances and Domestic Protective Advances, collectively.
"Qualified ECP Guarantor" means, in respect of any Swap Obligation, each Loan Party that has total assets exceeding $10,000,000 at the time the relevant Loan Guaranty or grant of the relevant security interest becomes or would become effective with respect to such Swap Obligation or such other person as constitutes an "eligible contract participant" under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another person to qualify as an "eligible contract participant" at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.
"Qualifying Lender" means:
(a) a Lender (other than a Lender within clause (b) below) which is beneficially entitled to interest payable to that Lender in respect of an advance and is:
(i) a Lender:
(A) | that is a bank (as defined for the purpose of section 879 of the ITA) making an advance; or |
(B) | in respect of an advance by a person that was a bank (as defined for the purpose of section 879 of the ITA) at the time that such advance was made, |
and, in each case, which is within the charge to United Kingdom corporation tax with respect to any payments of interest made in respect of that advance; or
(ii) a Lender which is:
(A) a company resident in the United Kingdom for United Kingdom tax purposes;
(B) a partnership, each member of which is:
(1) a company so resident in the United Kingdom; or
(2) | a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; |
(C) | a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account i |
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nterest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company; or
(D) a Treaty Lender; or
(b) a Lender which is a building society (as defined for the purposes of section 880 of the ITA) making an advance.
"Real Property" means any real property owned or leased by any Loan Party.
"Register" has the meaning assigned to such term in Section 9.04.
"Related Parties" means, with respect to any specified Person, such Person's Affiliates and the respective directors, officers, employees, agents and advisors of such Person and such Person's Affiliates.
"Remittances" has the meaning assigned to such term in Section 12.01(a).
"Report" means reports prepared by the Administrative Agent or another Person showing the results of appraisals, field examinations or audits pertaining to the Loan Parties' assets from information furnished by or on behalf of the Loan Parties, after the Administrative Agent has exercised its rights of inspection pursuant to this Agreement, which Reports may be distributed to the Lenders by the Administrative Agent.
"Required Lenders" means, at any time, Lenders having Credit Exposure and unused Commitments representing 66 2/3% of the sum of the total Credit Exposure and unused Commitments at such time, without duplication of any Ex-Im Revolving Exposure that has been participated to the Ex-Im Participants.
"Required Canadian Lenders" means, at any time, Lenders having Credit Exposure with respect to Canadian Obligations and unused Canadian Revolving Subcommitments representing 66 2/3% of the sum of the total Credit Exposure with respect to Canadian Obligations and unused Canadian Revolving Subcommitment at such time, without duplication of any Ex-Im Revolving Exposure that has been participated to the Ex-Im Participants.
"Required European Lenders" means, at any time, Lenders having Credit Exposure with respect to European Obligations and unused European Revolving Subcommitments representing 66 2/3% of the sum of the total Credit Exposure with respect to European Obligations and unused European Revolving Subcommitment at such time, without duplication of any Ex-Im Revolving Exposure that has been participated to the Ex-Im Participants.
"Requirement of Law" means, as to any Person, the Certificate of Incorporation and By‑Laws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.
"Reserves" means any and all reserves which the Administrative Agent or the Ex-Im Revolving Lender, as applicable, deems necessary, without duplication of any other reserve or adjustment made under the definition of Eligible Accounts or Eligible Inventory, Eligible Export-Related Accounts or Eligible Export-Related Inventory or Eligible Equipment, in its Permitted Discretion, to maintain (including, without limitation, reserves for accrued and unpaid interest on the Secured Obligations, Banking Services Reserves, volatility reserves, reserves for "extended" or "extendable" retention of title, reserves for rent at locations leased by any Loan Party as to which a Collateral Access Agreement has not been delivered to the Administrative Agent and for consignee's, warehousemen's and bailee's charges, reserves for dilution of
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Accounts, reserves for Inventory shrinkage, reserves for customs charges and shipping charges related to any Inventory in transit, reserves for Swap Obligations, reserves for contingent liabilities of any Loan Party, reserves for uninsured losses of any Loan Party, reserves for priority wage and compensation claims under the Wage Earner Protection Program Act (Canada) and the Bankruptcy and Insolvency Act (Canada), reserves for any Canadian Unfunded Pension Liability in respect of any Canadian Defined Benefit Plan, reserves for uninsured, underinsured, un-indemnified or under-indemnified liabilities or potential liabilities with respect to any litigation, reserves for environmental liabilities, including the costs of any environmental cleanup or compliance, reserves for the prescribed part of a European Loan Party's net property that would be made available for the satisfaction of its unsecured liabilities pursuant to Section 176A of the Insolvency Xxx 0000 (U.K.), reserves for liabilities of a European Loan Party which constitute preferential debts pursuant to Section 386 and Schedule 6 of the Insolvency Xxx 0000 (U.K.) or section 285 of the Companies Act, 1963 of Ireland (as amended), and reserves for taxes, fees, assessments, and other governmental charges) with respect to the Collateral or any Loan Party.
"Restricted Payment" means any dividend or distribution (whether in cash, securities or other property) with respect to any Equity Interests in any Loan Party, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in any Loan Party or any option, warrant or other right to acquire any such Equity Interests in any Loan Party.
"Revolving Commitment" means with respect to a Lender, such Lender's Domestic Revolving Commitment, Ex-Im Revolving Subcommitment, Canadian Revolving Subcommitment or European Revolving Subcommitment, as the context indicates.
"Revolving Exposure" means, collectively, the Domestic Revolving Exposure, the Ex-Im Revolving Exposure, the Canadian Revolving Exposure and the European Revolving Exposure.
"Revolving Lender" means, as of any date of determination, a Domestic Revolving Lender, the Ex-Im Revolving Lender, a Canadian Revolving Lender or a European Revolving Lender, as the context indicates; and "Revolving Lenders" means the Domestic Revolving Lenders, the Ex-Im Revolving Lender, the Canadian Revolving Lenders and the European Revolving Lenders, collectively.
"Revolving Loan" means a Domestic Revolving Loan, an Ex-Im Revolving Loan, a Canadian Revolving Loan or a European Revolving Loan; and "Revolving Loans" means Domestic Revolving Loans, Ex-Im Revolving Loans, Canadian Revolving Loans and European Revolving Loans, collectively.
"S&P" means Standard & Poor's Ratings Services, a division of The McGraw Hill Companies, Inc.
"Sale and Leaseback Transaction" means any sale or other transfer of property by any Person with the intent to lease such property as lessee.
"Sanctioned Country" means, at any time, a country or territory which is the subject or target of any Sanctions.
"Sanctioned Person" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State or by the United Nations Security Council, the European Union or any EU member state, (b) any Person operating, organized or resident in a Sanctioned Country, (c) any Person that is a "designated person", "politically exposed foreign person" or "terrorist group" as described in any Canadian Economic Sanctions and Export Control Laws, or (d) any Person controlled by any such Person.
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"Sanctions" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, (b) the Candian federal government or (c) the United Nations Security Council, the European Union or Her Majesty's Treasury of the United Kingdom.
"Secured Obligations" means all Obligations, together with all (i) Banking Services Obligations and (ii) Swap Obligations owing to any Agent or one or more Lenders or their respective Affiliates; provided that at or prior to the time that any transaction relating to such Swap Obligation is executed, the Lender party thereto (if other than Chase, Chase Canada or Chase Europe) shall have delivered written notice to the Administrative Agent that such a transaction has been entered into and that it constitutes a Secured Obligation entitled to the benefits of the Collateral Documents; provided, further, that the definition of "Secured Obligations" shall not create any Guarantee by any guarantor of all or any portion of the Obligations of (or grant of security interest by any such guarantor to support, as applicable) any Excluded Swap Obligations of such guarantor for purposes of determining any obligations of any such guarantor.
"Security Agreements" means, individually or collectively, the Domestic Security Agreement, the Ex-Im Security Agreement and any other pledge or security agreement entered into after June 30, 2007 by any Loan Party, or any other Person, as the same may be amended, restated or otherwise modified to date or from time to time hereafter.
"Settlement" has the meaning assigned to such term in Section 2.05(d).
"Settlement Date" has the meaning assigned to such term in Section 2.05(d).
"Siemens Accounts" means Accounts owing to Supply Technologies LLC by Siemens Industry, Inc.
"Xxxxxxx Accounts" means Accounts owing to Supply Technologies LLC by Xxxxxxx Xxxxx and Xxxxxx.
"State of Ohio Permitted Indebtedness" means the loans made by the State of Ohio to General Aluminum Mfg. Company in the original principal amount of $4,000,000 pursuant to that certain Loan Agreement between The Director of Development of the State of Ohio and General Aluminum Mfg. Company dated as of February 17, 2009, as the same may be increased to an aggregate amount outstanding at any time not to exceed $6,000,000. The maturity date with respect to such Indebtedness is February 17, 2019.
"Statutory Reserve Rate" means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to which the Administrative Agent is subject with respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as "Eurocurrency Liabilities" in Regulation D of the Board). Such reserve percentages shall include those imposed pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.
"Sterling" or "₤" means the lawful currency of the United Kingdom.
"Sterling Loan" means any Loan denominated in Sterling.
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"Subordinated Indebtedness" of a Person means any Indebtedness of such Person the payment of which is subordinated to payment of the Secured Obligations to the written satisfaction of the Administrative Agent.
"subsidiary" means, with respect to any Person (the "parent") at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent's consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.
"Subsidiary" means any direct or indirect subsidiary of the Company or a Loan Party, as applicable.
"Substantial Portion" means, with respect to the property of the Company and its Subsidiaries, property which represents more than 10% of the consolidated assets of the Company and its Subsidiaries or property which is responsible for more than 10% of the consolidated net sales or of the consolidated net income of the Company and its Subsidiaries, in each case, as would be shown in the consolidated financial statements of the Company and its Subsidiaries as at the beginning of the twelve-month period ending with the month in which such determination is made (or if financial statements have not been delivered hereunder for that month which begins the twelve-month period, then the financial statements delivered hereunder for the quarter ending immediately prior to that month).
"Swap Agreement" means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Loan Parties shall be a Swap Agreement.
"Swap Obligations" of a Person means any and all obligations of such Person, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), under (a) any and all Swap Agreements, and (b) any and all cancellations, buy backs, reversals, terminations or assignments of any Swap Agreement transaction. Without limiting the foregoing, with respect to any guarantor of all or any portion of the Obligations, Swap Obligations shall include any obligation to pay or perform under any agreement, contract or transaction that constitutes a "swap" within the meaning of section 1a(47) of the Commodity Exchange Act or any rules or regulations promulgated thereunder
"Swingline Exposure" means, at any time, the sum of the aggregate undrawn amount of all outstanding Swingline Loans at such time. The Swingline Exposure of any Lender at any time shall be its Applicable Percentage of the total Swingline Exposure at such time.
"Swingline Lender" means the Domestic Swingline Lender, the Canadian Swingline Lender or the European Swingline Lender, as the context indicates; and "Swingline Lenders" means the Domestic Swingline Lender, the Canadian Swingline Lender and the European Swingline Lender, collectively.
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"Swingline Loans" means the Domestic Swingline Loans, the Canadian Swingline Loans or the European Swingline Loans, as the context indicates.
"TARGET2" means the Trans-European Automated Real-time Gross Settlement Express Transfer payment system which utilizes a single shared platform and which was launched on 19 November 2007.
"Tax Confirmation" means a confirmation by a Lender that the person beneficially entitled to interest payable to that Lender in respect of an advance is either:
(a) a company resident in the United Kingdom for United Kingdom tax purposes; or
(b) a partnership each member of which is:
(i) a company so resident in the United Kingdom; or
(ii) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or
(c) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.
"Tax Credit" means a credit against, relief or remission for, or repayment of, any Taxes.
"Tax Deduction" means a deduction or withholding for and on account of Taxes from a payment under a Loan Document.
"Tax Payment" means, in relation to any European Borrower, either the increase in a payment made by such European Borrower to a Lender under Section 2.22(b) (Tax gross-up) or a payment under Section 2.22(c) (Tax indemnity).
"Taxes" means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any Governmental Authority.
"Term Lenders" means, as of any date of determination, Lenders having Term Loans outstanding at such time.
"Term Loans" means the Term Loans extended by the Term Lenders to the Company as described in Section 2.01(e) hereof. The outstanding principal balance of the Term Loans with respect to each Term Lender as of the Effective Date is set forth on the Commitment Schedule or, following the Effective Date, in the most recent Assignment and Assumption executed by such Term Lender. The aggregate outstanding principal balance of the Term Loans of all Term Lenders as of the Effective Date is $16,071,428.60. The commitment of the Term Lenders to make the Term Loans terminated concurrently with the making of the Existing Term Loans under the Existing Credit Agreement.
"Transactions" means the execution, delivery and performance by the Borrowers of this Agreement and the other Loan Documents, the borrowing of Loans and other Credit Extensions, the use of the proceeds thereof and the issuance of Letters of Credit hereunder.
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"Treaty Lender" means a Lender which:
(a) is treated as a resident of a Treaty State for the purposes of the relevant Treaty; and
(b) does not carry on a business in the United Kingdom through a permanent establishment with which that Lender’s participation in any advance is effectively connected.
"Treaty State" means a jurisdiction having a double taxation agreement (a "Treaty") with the United Kingdom which makes provision for full exemption from tax imposed by the United Kingdom on interest.
"Type", when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference (a) to the Adjusted LIBO Rate or the CB Floating Rate in the case of all Loans other than Canadian Revolving Loans and European Revolving Loans, (b) the Canadian Prime Rate or the CDOR Rate in the case of Canadian Dollar Loans, (c) the US Base Rate (Canada) or the Adjusted LIBO Rate in the case of Dollar Loans that are Canadian Revolving Loans or (d) the Adjusted LIBO Rate or the Overnight LIBO Rate in the case of Dollar Loans, Euro Loans and/or Sterling Loans that are European Revolving Loans.
"UCC" means the Uniform Commercial Code as in effect from time to time in the State of Ohio or any other state the laws of which are required to be applied in connection with the issue of perfection of security interests.
"US Base Rate (Canada)" means a fluctuating rate of interest per annum which is equal at all times to the greatest of: (a) the reference rate of interest (however designated) announced from time to time by Chase Canada as being its reference rate for determining interest chargeable by it on US Dollar-denominated commercial loans made in Canada (which rate is not necessarily the lowest rate charged by Chase Canada to any customer), (b) 0.50% above the Federal Funds Effective Rate from time to time in effect, and (c) the Adjusted One-Month LIBOR Rate for a month Interest Period on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%. Any change in the US Base Rate (Canada) due to a change in the reference rate, the Federal Funds Effective Rate or the Adjusted One-Month LIBOR Rate shall be effective from and including the effective date of such change in the reference rate, the Federal Funds Effective Rate or the Adjusted One-Month LIBOR Rate.
"USBR", when used in reference to any Dollar Loan or Dollar Borrowing denominated in Dollars refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest by reference to the US Base Rate (Canada).
"United Kingdom" means the United Kingdom of Great Britain and Northern Ireland.
"Unliquidated Obligations" means, at any time, any Secured Obligations (or portion thereof) that are contingent in nature or unliquidated at such time, including any Secured Obligation that is: (i) an obligation to reimburse a bank for drawings not yet made under a letter of credit issued by it; (ii) any other obligation (including any guarantee) that is contingent in nature at such time; or (iii) an obligation to provide collateral to secure any of the foregoing types of obligations.
"VAT" means:
(a) any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112); and
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(b) any other tax of a similar nature, whether imposed in a member state of the European Union in substitution for, or levied in addition to, such tax referred to in paragraph (a) above, or imposed elsewhere.
"Volvo Accounts" means Accounts owing to Supply Technologies LLC by Volvo Trucks North America LLC, Volvo Parts North America LLC or one or more of their Affiliates who are "Permitted Obligors" under the Volvo Purchase Agreement.
"Volvo Purchase Agreement" means the Receivables Purchase Agreement dated November 16, 2007 between Supply Technologies LLC, Viking Asset Purchaser No. 7 IC, any Additional Purchasers and Citicorp Trustee Company Limited.
"Volvo Supplier Agreements" means the supplier agreements entered into from time to time between Supply Technologies LLC and PrimeRevenue, Inc.
"Xxxxx Fargo" means Xxxxx Fargo Bank, National Association, in its capacity as purchaser under the Xxxxx Fargo Purchase Agreement.
"Xxxxx Fargo Purchase Agreement " means the Receivables Purchase Agreement dated January 26, 2012 between Supply Technologies LLC and Xxxxx Fargo.
"Xxxxx Fargo Purchase Agreement (JCI)" means the Accounts Receivable Purchase Agreement dated August 10, 2012 between Supply Technologies LLC and Xxxxx Fargo.
"Withdrawal Liability" means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.
Section 1.02 Classification of Loans and Borrowings.
For purposes of this Agreement, Loans may be classified and referred to by Class (e.g., a "Revolving Loan") or by Type (e.g., a "Eurodollar Loan") or by Class and Type (e.g., a "Eurodollar Revolving Loan"). Borrowings also may be classified and referred to by Class (e.g., a "Revolving Borrowing") or by Type (e.g., a "Eurodollar Borrowing") or by Class and Type (e.g., a "Eurodollar Revolving Borrowing").
Section 1.03 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 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 Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules 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 tangible and intangible assets and properties, including cash, securities, accounts and contract rights.
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Section 1.04 Accounting Terms; GAAP.
Except as otherwise expressly 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 Representative notifies the Administrative Agent that the Borrowers request an amendment to any provision hereof to eliminate the effect of any change occurring after the Effective Date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower Representative that the Required Lenders request an amendment to any provision hereof for such purpose), 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 herewith.
ARTICLE II
The Credits
The Credits
Section 2.01 Commitments.
Subject to the terms and conditions set forth herein, the Lenders agree to make Loans to the Borrowers from time to time as set forth herein:
(a) Each Domestic Revolving Lender agrees to make Domestic Revolving Loans to the Company from time to time during the Availability Period in an aggregate principal amount that will not result in (i) such Domestic Revolving Lender's Domestic Revolving Exposure exceeding such Domestic Revolving Lender's Domestic Revolving Commitment minus such Domestic Revolving Lender's Canadian Revolving Exposure, such Domestic Revolving Lender's European Revolving Exposure and such Domestic Lender's participation in Ex-Im Revolving Exposure or (ii) the total Domestic Revolving Exposure exceeding the lesser of (x) the sum of the total Domestic Revolving Commitments minus the total Canadian Revolving Exposure and the total European Revolving Exposure at such time minus the total Ex-Im Revolving Exposure; or (y) the Domestic Borrowing Base, subject to the Administrative Agent's authority to make Domestic Protective Advances and Domestic Overadvances pursuant to the terms of Section 2.04 and 2.05. Within the foregoing limits and subject to the terms and conditions set forth herein, the Company may borrow, prepay and reborrow Domestic Revolving Loans. Domestic Revolving Loans shall be Dollar Loans. As of the end of the Business Day immediately preceding the Effective Date, the outstanding principal balance of the Existing Domestic Revolving Loans under the Existing Credit Agreement is $122,028,571.42, all of which shall be deemed to be Domestic Revolving Loans advanced under this Agreement.
(b) Each Canadian Revolving Lender agrees to make Canadian Revolving Loans to the Canadian Borrower from time to time during the Availability Period in an aggregate principal amount that will not result in (i) such Canadian Revolving Lender's Canadian Revolving Exposure exceeding such Canadian Revolving Lender's Canadian Revolving Subcommitment or (ii) the total Canadian Revolving Exposure exceeding the least of (x) the sum of the total Canadian Revolving Subcommitments, (y) the amount by which the total Domestic Revolving Commitments exceeds the sum of the total Domestic Revolving Exposure, the total European Revolving Exposure and the total Ex-Im Revolving Exposure and (z) the Canadian Borrowing Base, subject to the Canadian Agent's authority, as directed by the Administrative Agent, to make Canadian Protective Advances and Canadian Overadvances pursuant to the terms and conditions of Section 2.04 and 2.05. Within the foregoing limits and subject to the terms and conditions set forth herein, the Canadian Borrower may borrow, prepay and reborrow Canadian Revolving Loans. Canadian Revolving Loans shall be advanced in Dollars or Canadian Dollars, at the election of the Borrower Representative. As of the end of the Business Day immediately preceding the Effective Date, the outstanding principal balance
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of the Existing Canadian Revolving Loans under the Existing Credit Agreement is $0, all of which shall be deemed to be Canadian Revolving Loans advanced under this Agreement.
(c) Each European Revolving Lender agrees to make European Revolving Loans to the European Borrowers from time to time during the European Availability Period in an aggregate principal amount that will not result in (i) such European Revolving Lender's European Revolving Exposure exceeding such European Revolving Lender's European Revolving Subcommitment or (ii) the total European Revolving Exposure exceeding the least of (x) the sum of the total European Revolving Subcommitments, (y) the amount by which the total Domestic Revolving Commitments exceeds the sum of the total Domestic Revolving Exposure, the total Canadian Revolving Exposure and the total Ex-Im Revolving Exposure and (z) the European Borrowing Base, subject to the European Agent's authority, as directed by the Administrative Agent, to make European Protective Advances and European Overadvances pursuant to the terms and conditions of Section 2.04 and 2.05. Within the foregoing limits and subject to the terms and conditions set forth herein, the European Borrowers may borrow, prepay and reborrow European Revolving Loans. European Revolving Loans shall be advanced in Dollars, Sterling or Euros, at the election of the Borrower Representative.
(d) (i) Subject to the terms of the Ex-Im Bank Documents and the Fast Track Loan Agreement, the Ex-Im Revolving Lender agrees to make Ex-Im Revolving Loans to the Ex-Im Borrowers from time to time during the Ex-Im Availability Period in an aggregate principal amount that will not result in (A) the Ex-Im Revolving Lender's Ex-Im Revolving Exposure exceeding the Ex-Im Revolving Lender's Ex-Im Revolving Subcommitment or (ii) the amount by which the total Domestic Revolving Commitments exceed the sum of the total Canadian Revolving Exposure, the total European Revolving Exposure and the total Domestic Revolving Exposure and (z) the Export-Related Borrowing Base. Within the foregoing limits and subject to the terms and conditions set forth herein, the Ex-Im Borrowers may borrow, prepay and reborrow Ex-Im Revolving Loans. The making of Ex-Im Revolving Loans and the issuance of Ex-Im Letters of Credit will be governed by the Fast Track Loan Agreement, the Ex-Im Bank Borrower Agreement and this Agreement; in the event of conflict among the terms of the Fast Track Loan Agreement, the Ex-Im Bank Borrower Agreement and the terms hereof, the terms of the Ex-Im Bank Borrower Agreement shall prevail. In no event shall the obligations of the Ex-Im Revolving Lender hereunder, under the Fast Track Loan Agreement and under the Ex-Im Bank Borrower Agreement be deemed to be distinct commitments; rather, this Agreement, the Fast Track Loan Agreement and the Ex-Im Bank Borrower Agreement describe different aspects of the same obligations.
(i) Upon the making of an Ex-Im Revolving Loan (whether before or after the occurrence of a Default), each Ex-Im Participant shall be deemed, without further action by any party hereto, to have unconditionally and irrevocably purchased from the Ex-Im Revolving Lender, without recourse or warranty, an undivided interest and participation in such Ex-Im Revolving Loan in proportion to its Applicable Percentage of the Ex-Im Revolving Subcommitments. The Ex-Im Revolving Lender, may, at any time, but no less frequently than weekly, require the Ex-Im Participants to fund their participations. From and after the date, if any, on which any Ex-Im Participant is required to fund its participation in any Ex-Im Revolving Loan purchased hereunder, the Administrative Agent shall promptly distribute to such Ex-Im Participant, such Ex-Im Participant's Applicable Percentage of all payments of principal and interest and all proceeds of Collateral received by the Administrative Agent (or the Ex-Im Revolving Lender) in respect of such Loan. Each Ex-Im Participant's obligation to purchase such a participation interest shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right that such Ex-Im Participant may have against the Ex-Im Revolving Lender, any Ex-Im Borrower or any other Person for any reason whatsoever; (B) the occurrence or continuance of any Default; (C) the inability of the Ex-Im Borrowers to satisfy the conditions precedent to borrowing set forth herein or in the Fast
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Track Loan Agreement at any time or (D) any other circumstance, happening or event whatsoever.
(e) Subject to the terms and conditions set forth in the Existing Credit Agreement, each Term Lender (as defined in the Existing Credit Agreement) with a Term Loan Commitment (as defined in the Existing Credit Agreement) under the Existing Credit Agreement made an Existing Term Loan to the Company on the Fifth Restated Closing Date, in an amount equal to such Term Lender's then applicable Term Loan Commitment under the Existing Credit Agreement. As of the end of the Business Day immediately preceding the Effective Date, the outstanding principal balance of the Existing Term Loans under the Existing Credit Agreement is $16,071,428.60, all of which shall be deemed to be Term Loans advanced under this Agreement. Amounts repaid in respect of Term Loans may not be reborrowed.
Section 2.02 Loans and Borrowings.
(a) Each Loan (other than a Swingline Loan) shall be made as part of a Borrowing consisting of Loans of the same Class and Type made by the applicable Lenders ratably in accordance with their respective Commitments or subcommitments of the applicable Class. Any Protective Advance, any Overadvance and any Swingline Loan shall be made in accordance with the procedures set forth in Section 2.04 and 2.05. The Term Loans shall amortize as set forth in Section 2.10.
(b) Subject to Section 2.14, and to compliance with the procedures described in Section 2.03, each Domestic Revolving Borrowing, Ex-Im Borrowing and Term Loan Borrowing shall be comprised entirely of CBFR Loans or Eurodollar Loans as the Borrower Representative may request in accordance herewith. Subject to Section 2.14, each Canadian Revolving Borrowing that is a Canadian Dollar Loan shall be comprised entirely of CP Loans or CDOR Rate Loans as the Borrower Representative may request in accordance herewith. Subject to Section 2.14, each Canadian Revolving Borrowing that is a Dollar Loan shall be comprised entirely of USBR Loans or Eurodollar Loans as the Borrower Representative may request in accordance herewith. Subject to Section 2.14, each European Revolving Borrowing shall be comprised entirely of Eurodollar Loans as the Borrower Representative may request in accordance herewith. Each Domestic Swingline Loan shall be a CBFR Loan, each Canadian Swingline Loan shall be a CP Loan or a USBR Loan and each European Swingline Loan shall be an Overnight LIBO Rate Loan. Each Lender at its option may make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the applicable Borrower to repay such Loan in accordance with the terms of this Agreement.
(c) At the commencement of each Interest Period for any Eurodollar Borrowing other than a Eurodollar Canadian Revolving Borrowing or a Eurodollar European Revolving Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $5,000,000. At the commencement of each Interest Period for any Eurodollar Canadian Revolving Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $100,000 and not less than $100,000. At the commencement of each Interest Period for any Eurodollar European Revolving Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $100,000 and not less than $100,000. At the commencement of each Interest Period for any CDOR Rate Revolving Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of Cdn $100,000 and not less than Cdn $100,000. CBFR Borrowings, CP Borrowings and USBR Borrowings may be in any amount. Borrowings of more than one Type and Class may be outstanding at the same time; provided that there shall not at any time be more than a total of (a) 10 different Eurodollar Domestic Revolving Borrowings outstanding, (b) 3 different Eurodollar Canadian Revolving Borrowings and CDOR Revolving Borrowings outstanding (in the aggregate) or (c) 7 different Eurodollar European Revolving Borrowings.
(d) As of the Effective Date, certain Eurodollar Loans (as defined in the Existing Credit Agreement) are in existence under the Existing Credit Agreement. The parties agree that effective on the
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Effective Date, such Eurodollar Loans shall be converted into Eurodollar Revolving Borrowings hereunder in the same amounts and with the same Interest Periods, but subject to adjustment to the Applicable Rates in effect hereunder.
(e) Notwithstanding any other provision of this Agreement, the Borrower Representative shall not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date.
Section 2.03 Requests for Borrowings.
(a) To request a Domestic Revolving Borrowing or Ex-Im Borrowing, the Borrower Representative shall notify the Administrative Agent of such request either in writing (delivered by hand or facsimile) in a form approved by the Administrative Agent and signed by the Borrower Representative or by telephone (a) in the case of a Eurodollar Borrowing not later than 10:00 a.m., Chicago time, three Business Days before the date of the proposed Borrowing or (b) in the case of a CBFR Borrowing not later than noon, Chicago time, on the date of the proposed Borrowing; provided that any such notice of a CBFR Revolving Borrowing to finance the reimbursement of an LC Disbursement as contemplated by Section 2.06(e) must be given not later than 9:00 a.m., Chicago time, on the date of the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery or facsimile to the Administrative Agent of a written Borrowing Request in a form approved by the Administrative Agent and signed by the Borrower Representative. Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.01:
(i) the aggregate amount of the requested Borrowing and a breakdown of the separate wires comprising such Borrowing;
(ii) the date of such Borrowing, which shall be a Business Day;
(iii) whether such Borrowing is to be a CBFR Borrowing or a Eurodollar Borrowing;
(iv) whether such Borrowing is to be a Domestic Revolving Borrowing or an Ex-Im Borrowing;
(v) the identity of the applicable Borrower; and
(vi) in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term "Interest Period."
If no election as to the Type of Domestic Revolving Borrowing or Ex-Im Borrowing is specified, then the requested Borrowing shall be a CBFR Borrowing. If no Interest Period is specified with respect to any requested Eurodollar Borrowing, then the applicable Borrower shall be deemed to have selected an Interest Period of one month's duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each Domestic Revolving Lender or the Ex-Im Revolving Lender, as applicable, of the details thereof and of the amount of such Lender's Loan to be made as part of the requested Borrowing.
(b) To request a Canadian Revolving Borrowing, the Borrower Representative shall notify the Administrative Agent and the Canadian Agent of such request either in writing (delivered by hand or facsimile) in a form approved by the Administrative Agent and signed by the Borrower Representative or by telephone (a) in the case of a CDOR Rate Borrowing or a Eurodollar Borrowing, not later than 11:00 a.m., Toronto time, three Business Days before the date of the proposed Borrowing or (b) in the case
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of a CP Borrowing or a USBR Borrowing, not later than 11:00 a.m., Toronto time, on the date of the proposed Borrowing; provided that any such notice of a CP Revolving Borrowing or a USBR Borrowing to finance the reimbursement of a Canadian LC Disbursement as contemplated by Section 2.06(e) must be given not later than 10:00 a.m., Toronto time, on the date of the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery or facsimile to the Administrative Agent of a written Borrowing Request in a form approved by the Administrative Agent and signed by the Borrower Representative. Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.01:
(ii) the aggregate amount of the requested Borrowing and a breakdown of the separate wires comprising such Borrowing;
(iii) the date of such Borrowing, which shall be a Business Day;
(iv) whether such Borrowing is to be denominated in Canadian Dollars or Dollars;
(v) whether such Borrowing is to be a CP Borrowing, a USBR Borrowing, a CDOR Rate Borrowing or a Eurodollar Borrowing; and
(vi) in the case of a CDOR Rate Borrowing or a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term "Interest Period."
If no election as to the Type of Canadian Revolving Borrowing is specified, then the requested Borrowing shall be a CP Borrowing or a USBR Borrowing. If no Interest Period is specified with respect to any requested CDOR Rate Borrowing or Eurodollar Borrowing, then the Canadian Borrower shall be deemed to have selected an Interest Period of one month's (or 30 days' in the case of a CDOR Rate Borrowing) duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each Canadian Revolving Lender of the details thereof and of the amount of such Lender's Loan to be made as part of the requested Borrowing.
(c) To request a European Revolving Borrowing during the European Availability Period, the Borrower Representative shall notify the Administrative Agent and the European Agent of such request in writing (delivered by hand or facsimile) in a form approved by the Administrative Agent and signed by the Borrower Representative not later than 11:00 a.m., London time, three Business Days before the date of the proposed Borrowing. Each such written Borrowing Request shall specify the following information in compliance with Section 2.01:
(i) the aggregate amount of the requested Borrowing and a breakdown of the separate wires comprising such Borrowing;
(ii) the date of such Borrowing, which shall be a Business Day;
(iii) whether such Borrowing is to be denominated in Sterling, Euro or Dollars;
(iv) the Type of such Borrowing, which shall be a Eurodollar Borrowing; and
(v) the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term "Interest Period."
If no election as to the Type of European Revolving Borrowing is specified, then the requested Borrowing shall be a Eurodollar Borrowing. If no Interest Period is specified with respect to any requested Eurodollar
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Borrowing, then the European Borrower shall be deemed to have selected an Interest Period of one month's duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each European Revolving Lender of the details thereof and of the amount of such Lender's Loan to be made as part of the requested Borrowing.
Section 2.04 Protective Advances.
(a) Subject to the limitations set forth below, the Administrative Agent is authorized by the Company, the Canadian Borrower, the European Borrowers and the Lenders, from time to time in the Administrative Agent's sole discretion (but shall have absolutely no obligation to), to make Domestic Revolving Loans to the Company, on behalf of all Domestic Revolving Lenders, to direct the Canadian Agent to make Canadian Revolving Loans to the Canadian Borrower, on behalf of all Canadian Revolving Lenders, or, during the European Availability Period, to direct the European Agent to make European Revolving Loans to the European Borrowers, on behalf of all European Revolving Lenders, which the Administrative Agent, in its Permitted Discretion, deems necessary or desirable (i) to preserve or protect the Collateral, or any portion thereof, (ii) to enhance the likelihood of, or maximize the amount of, repayment of the Loans and other Obligations, or (iii) to pay any other amount chargeable to or required to be paid by such Borrower pursuant to the terms of this Agreement, including payments of reimbursable expenses (including costs, fees, and expenses as described in Section 9.03) and other sums payable under the Loan Documents (any of such Loans to the Company are herein referred to as "Domestic Protective Advances", any of such Loans to the Canadian Borrower are hereafter referred to as "Canadian Protective Advances" and any of such Loans to the European Borrowers are hereafter referred to as "European Protective Advances"); provided that, the aggregate amount of Protective Advances outstanding at any time shall not at any time exceed the Dollar Equivalent of $10,000,000; provided further that, (A) the Dollar Equivalent of the aggregate amount of outstanding Protective Advances plus the Dollar Equivalent of the aggregate Revolving Exposure shall not exceed the aggregate Revolving Commitments, (B) the aggregate amount of outstanding Domestic Protective Advances plus the aggregate Domestic Revolving Exposure shall not exceed the aggregate Domestic Revolving Commitment minus the aggregate Ex-Im Exposure minus the Dollar Equivalent of the aggregate Canadian Revolving Exposure and minus the Dollar Equivalent of the aggregate European Revolving Exposure, (C) the Dollar Equivalent of the aggregate amount of outstanding Canadian Protective Advances plus the Dollar Equivalent of the aggregate Canadian Revolving Exposure shall not exceed the aggregate Canadian Revolving Subcommitment, (D) the Dollar Equivalent of the aggregate amount of outstanding European Protective Advances plus the Dollar Equivalent of the aggregate European Revolving Exposure shall not exceed the aggregate European Revolving Subcommitment and (E) no Lender's Credit Exposure shall exceed such Lender's aggregate Commitment. Protective Advances may be made even if the conditions precedent set forth in Section 4.02 (other than clause (c) thereof) have not been satisfied. The Protective Advances shall be secured by the Liens in favor of the Agents in and to the Collateral as otherwise provided herein and shall constitute Obligations hereunder. All Canadian Protective Advances shall be CP Borrowings or USBR Borrowings, all Domestic Protective Advances shall be CBFR Borrowings and all European Protective Advances shall be Overnight LIBO Rate Borrowings. The Administrative Agent's authorization to make Domestic Protective Advances, to direct the Canadian Agent to make Canadian Protective Advances and to direct the European Agent to make European Protective Advances may be revoked at any time by the Required Lenders. Any such revocation must be in writing and shall become effective prospectively upon the Administrative Agent's receipt thereof. At any time that there is sufficient Domestic Availability and the conditions precedent set forth in Section 4.02 have been satisfied, the Administrative Agent may request the Domestic Revolving Lenders to make a Domestic Revolving Loan to repay a Domestic Protective Advance. At any time that there is sufficient Canadian Availability and the conditions precedent set forth in Section 4.02 have been satisfied, the Administrative Agent may request the Canadian Revolving Lenders to make a Canadian Revolving Loan to repay a Canadian Protective Advance. At any time that there is sufficient European Availability and the conditions precedent set forth in Section 4.02 have been satisfied, the Administrative Agent may request the European Revolving Lenders to make a European
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Revolving Loan to repay a European Protective Advance. At any other time the Administrative Agent may require the Lenders to fund their risk participations described in Section 2.04(b).
(b) Upon the making of a Domestic Protective Advance by the Administrative Agent (whether before or after the occurrence of a Default) to the Company, each Domestic Revolving Lender shall be deemed, without further action by any party hereto, to have unconditionally and irrevocably purchased from the Administrative Agent without recourse or warranty, an undivided interest and participation in such Domestic Protective Advance in proportion to its Applicable Percentage of the Domestic Revolving Exposure. Upon the making of a Canadian Protective Advance by the Canadian Agent (whether before or after the occurrence of a Default) to the Canadian Borrower, each Canadian Revolving Lender shall be deemed, without further action by any party hereto, to have unconditionally and irrevocably purchased from the Canadian Agent without recourse or warranty, an undivided interest and participation in such Canadian Protective Advance in proportion to its Applicable Percentage of the Canadian Revolving Exposure. Upon the making of a European Protective Advance by the European Agent (whether before or after the occurrence of a Default) to any European Borrower, each European Revolving Lender shall be deemed, without further action by any party hereto, to have unconditionally and irrevocably purchased from the European Agent without recourse or warranty, an undivided interest and participation in such European Protective Advance in proportion to its Applicable Percentage of the European Revolving Exposure. From and after the date, if any, on which any Lender is required to fund its participation in any Protective Advance purchased hereunder, the applicable Agent shall promptly distribute to such Lender, such Lender's Applicable Percentage of all payments of principal and interest and all proceeds of Collateral received by such Agent in respect of such Protective Advance.
Section 2.05 Swingline Loans and Overadvances; Settlement of Ex-Im Revolving Loans.
(a) The Agents, the Swingline Lenders and the Revolving Lenders agree that in order to facilitate the administration of this Agreement and the other Loan Documents, promptly after the Borrower Representative requests a CBFR Domestic Revolving Borrowing, a CP Canadian Revolving Borrowing, a USBR Canadian Revolving Borrowing or, during the European Availability Period, a Eurodollar European Revolving Borrowing, the applicable Swingline Lender may elect to have the terms of this Section 2.05(a) apply to such Borrowing Request by advancing, on behalf of the applicable Revolving Lenders and in the amount requested, same day funds to the applicable Borrower, on the applicable Borrowing date to the Funding Account(s) (each such Loan made solely by the Domestic Swingline Lender to the Company pursuant to this Section 2.05(a) is referred to in this Agreement as a "Domestic Swingline Loan"; each such Loan made solely by the Canadian Swingline Lender to the Canadian Borrower pursuant to this Section 2.05(a) is referred to in this Agreement as a "Canadian Swingline Loan"; and each such Loan made solely by the European Swingline Lender to one or more of the European Borrowers pursuant to this Section 2.05(a) is referred to in this Agreement as a "European Swingline Loan"), with settlement among them as to the Swingline Loans to take place on a periodic basis as set forth in Section 2.05(d). Each Swingline Loan shall be subject to all the terms and conditions applicable to other CBFR Loans, CP Loans, USBR Loans or Eurodollar Loans, as applicable, funded by the applicable Revolving Lenders, except that (i) all European Swingline Loans shall be Overnight LIBO Rate Borrowings, and (ii) all payments thereon shall be payable to the applicable Swingline Lender solely for its own account. In addition, the Borrowers hereby authorize the Domestic Swingline Lender, the Canadian Swingline Lender and the European Swingline Lender to, and each such Swingline Lender shall, subject to the terms and conditions set forth herein (but without any further written notice required), not later than 1:00 p.m., Chicago time (with respect to any Domestic Swingline Loan or Canadian Swingline Loan) or 11:00 a.m. London time (with respect to any European Swingline Loan), on each Business Day, make available to the applicable Borrower by means of a credit to the applicable Funding Account(s), the proceeds of a Domestic Swingline Loan, a Canadian Swingline Loan or a European Swingline Loan, as applicable, to the extent necessary to pay items to be drawn on any Controlled Disbursement Account that day (as determined based on notice from the Administrative Agent). The aggregate amount of Domestic Swingline Loans outstanding at any time shall not exceed $15,000,000, the
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aggregate amount of Canadian Swingline Loans outstanding at any time shall not exceed the Dollar Equivalent of $1,000,000 and the aggregate amount of European Swingline Loans outstanding at any time shall not exceed the Dollar Equivalent of $2,000,000. The Domestic Swingline Lender shall not make any Domestic Swingline Loan if the requested Domestic Swingline Loan exceeds Domestic Availability (before giving effect to such Domestic Swingline Loan). All Domestic Swingline Loans shall be CBFR Borrowings. The Canadian Swingline Lender shall not make any Canadian Swingline Loans if the requested Canadian Swingline Loan exceeds Canadian Availability (before giving effect to such Canadian Swingline Loan). All Canadian Swingline Loans shall be CP Borrowings or USBR Borrowings. The European Swingline Lender shall not make any European Swingline Loans if the requested European Swingline Loan exceeds European Availability (before giving effect to such European Swingline Loan).
(b) Any provision of this Agreement to the contrary notwithstanding, (i) at the request of the Borrower Representative, the Administrative Agent may in its sole discretion (but with absolutely no obligation), make Domestic Revolving Loans to the Company, on behalf of the Domestic Lenders, in amounts that exceed Domestic Availability (any such excess Domestic Revolving Loans are herein referred to collectively as "Domestic Overadvances"), (ii) at the request of the Borrower Representative, the Administrative Agent may in its sole discretion (but with absolutely no obligation) direct the Canadian Agent to make Canadian Revolving Loans to the Canadian Borrower, on behalf of the Canadian Revolving Lenders, in amounts that exceed Canadian Availability (any such excess Canadian Revolving Loans are herein referred to collectively as "Canadian Overadvances") and (iii) during the European Availability Period, at the request of the Borrower Representative, the Administrative Agent may in its sole discretion (but with absolutely no obligation) direct the European Agent to make European Revolving Loans to the European Borrowers, on behalf of the European Revolving Lenders, in amounts that exceed European Availability (any such excess European Revolving Loans are herein referred to collectively as "European Overadvances"); provided that, no Overadvance shall result in a Default due to the applicable Borrower's failure to comply with Section 2.01 for so long as such Overadvance remains outstanding in accordance with the terms of this paragraph, but solely with respect to the amount of such Overadvance. In addition, Overadvances may be made even if the applicable condition precedents set forth in Section 4.02(c), 4.03(a) and 4.05(a) has not been satisfied. All Domestic Overadvances shall constitute CBFR Borrowings, all Canadian Overadvances shall constitute CP Borrowings or USBR Borrowings and all European Overadvances shall constitute Overnight LIBO Rate Borrowings. The authority of the Administrative Agent to make Domestic Overadvances is limited to an aggregate amount not to exceed $10,000,000 at any time, the authority of the Canadian Agent to make Canadian Overadvances is limited to an aggregate amount not to exceed the Dollar Equivalent of $500,000 at any time and the authority of the European Agent to make European Overadvances is limited to an aggregate amount not to exceed the Dollar Equivalent of $500,000 at any time. No Overadvance may remain outstanding for more than 60 days (which need not be consecutive) in any 120 day period, no Overadvance shall cause any Domestic Revolving Lender's Domestic Revolving Exposure to exceed its Domestic Revolving Commitment, no Canadian Overadvance shall cause any Canadian Revolving Lender's Revolving Exposure to exceed its Canadian Revolving Commitment and no European Overadvance shall cause any European Revolving Lender's Revolving Exposure to exceed its European Revolving Commitment; provided that, the Required Lenders may at any time revoke the Administrative Agent's authorization to make Domestic Overadvances, to direct the Canadian Agent to make Canadian Overadvances or the European Agent to make European Overadvances. Any such revocation must be in writing and shall become effective prospectively upon the Administrative Agent's receipt thereof.
(c) Upon the making of a Domestic Swingline Loan or Domestic Overadvance (whether before or after the occurrence of a Default and regardless of whether a Settlement has been requested with respect to such Domestic Swingline Loan or Domestic Overadvance), each Domestic Revolving Lender shall be deemed, without further action by any party hereto, to have unconditionally and irrevocably purchased from the Domestic Swingline Lender or the Administrative Agent, as the case may be, without recourse or warranty, an undivided interest and participation in such Domestic Swingline Loan or Domestic Overadvance in proportion to its Applicable Percentage of the Domestic Revolving Commitment. Upon the making of a
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Canadian Swingline Loan or Canadian Overadvance (whether before or after the occurrence of a Default and regardless of whether a Settlement has been requested with respect to such Canadian Swingline Loan or Canadian Overadvance), each Canadian Revolving Lender shall be deemed, without further action by any party hereto, to have unconditionally and irrevocably purchased from the Canadian Swingline Lender or the Canadian Agent, as the case may be, without recourse or warranty, an undivided interest and participation in such Canadian Swingline Loan or Canadian Overadvance in proportion to its Applicable Percentage of the Canadian Revolving Subcommitment. Upon the making of a European Swingline Loan or European Overadvance (whether before or after the occurrence of a Default and regardless of whether a Settlement has been requested with respect to such European Swingline Loan or European Overadvance), each European Revolving Lender shall be deemed, without further action by any party hereto, to have unconditionally and irrevocably purchased from the European Swingline Lender or the European Agent, as the case may be, without recourse or warranty, an undivided interest and participation in such European Swingline Loan or European Overadvance in proportion to its Applicable Percentage of the European Revolving Subcommitment. The applicable Swingline Lender or Agent, as applicable, may, at any time, require the applicable Revolving Lenders to fund their participations (it being understood any such participation with respect to a European Swingline Loan or European Overadvance shall be funded within three Business Days following the date of such required funding). From and after the date, if any, on which any Revolving Lender is required to fund its participation in any Swingline Loan or Overadvance purchased hereunder, the applicable Agent shall promptly distribute to such Lender, such Lender's Applicable Percentage of all payments of principal and interest and all proceeds of Collateral received by such Agent in respect of such Loan.
(d) The Administrative Agent, on behalf of each Swingline Lender, shall request settlement (a "Settlement") with the applicable Revolving Lenders on at least a weekly basis or on any date that the Administrative Agent elects, by notifying the applicable Revolving Lenders of such requested Settlement by facsimile, telephone, or e-mail no later than noon, Chicago time on the date of such requested Settlement with respect to any Domestic Swingline Loan or Canadian Swingline Loan or 11:00 a.m., London time on the date that is three Business Days prior to the date of such requested Settlement with respect to any European Swingline Loan (the "Settlement Date"). Each applicable Revolving Lender (other than the applicable Swingline Lender, in the case of Swingline Loans) shall transfer the amount of such Revolving Lender's Applicable Percentage of the outstanding principal amount of the applicable Loan with respect to which Settlement is requested to the Administrative Agent, to such account of the Administrative Agent as the Administrative Agent may designate, not later than 2:00 p.m., Chicago time, on such Settlement Date. Settlements may occur during the existence of a Default and whether or not the applicable conditions precedent set forth in Article IV have then been satisfied. Such amounts transferred to the Administrative Agent shall be applied against the amounts of the applicable Swingline Lender's Swingline Loans and, together with such Swingline Lender's Applicable Percentage of such Swingline Loan, shall constitute Revolving Loans of such Revolving Lenders, respectively. If any such amount is not transferred to the Administrative Agent by any Revolving Lender on such Settlement Date, the applicable Swingline Lender shall be entitled to recover such amount on demand from such Lender together with interest thereon as specified in Section 2.07.
(e) Promptly after the delivery of each Ex-Im Borrowing Base Certificate hereunder during the Ex-Im Availability Period, the Administrative Agent will adjust the outstanding balances of the Ex-Im Revolving Loans and the Domestic Revolving Loans so that the outstanding Ex-Im Revolving Exposure is not in excess of the limitations and sublimits contained in Section 2.01(d) hereof. To the extent necessary, (i) the Domestic Swingline Lender will make Domestic Swingline Loans to the Company to enable the Company to make any payments in respect of the Ex-Im Revolving Loans required by the immediately preceding sentence or (ii) existing Domestic Revolving Loans shall be reallocated to the Ex-Im Revolving Loan balance if and to the extent that there exists excess Ex-Im Availability at such time.
Section 2.06 Letters of Credit.
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(a) General. Subject to the terms and conditions set forth herein, the Borrower Representative may request the issuance of Letters of Credit for the account of an applicable Borrower, in a form reasonably acceptable to the Administrative Agent and the applicable Issuing Bank, at any time and from time to time during the Availability Period (with respect to Domestic Letters of Credit and Canadian Letters of Credit), the European Availability Period (with respect to European Letters of Credit) or the Ex-Im Availability Period (with respect to Ex-Im Letters of Credit). In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by any Borrower to, or entered into by any Borrower with, the applicable Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control. As of the Effective Date, certain Letters of Credit (as defined in the Existing Credit Agreement) are outstanding under the Existing Credit Agreement, as set forth on Schedule 2.1.2. The parties agree that on the Effective Date, such Letters of Credit shall be deemed for all purposes to be Domestic Letters of Credit issued under this Agreement.
(b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower Representative shall hand deliver or facsimile (or transmit by electronic communication, if arrangements for doing so have been approved by the applicable Issuing Bank) to the applicable Issuing Bank and the Administrative Agent (prior to 10:00 am, Chicago time, at least three Business Days prior to the requested date of issuance, amendment, renewal or extension, it being agreed and understood that the form of any requested European Letter of Credit must be in agreed form as of 11:00 a.m., London time, at least three (3) Business Days prior to the issuance thereof) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, specifying whether such Letter of Credit is a Domestic Letter of Credit, a Canadian Letter of Credit, a European Letter of Credit or an Ex-Im Letter of Credit and specifying the date of issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount (in Dollars, Canadian Dollars, Sterling, Euro or another currency approved by the Administrative Agent and the applicable Issuing Bank as set forth below, as applicable) of such Letter of Credit, the name and address of the beneficiary thereof, the applicable Borrower in respect thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. If requested by the applicable Issuing Bank, the applicable Borrower also shall submit a letter of credit application on such Issuing Bank's standard form in connection with any request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of each Letter of Credit the Borrowers shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension (i) neither the Aggregate LC Exposure nor the Domestic LC Exposure shall exceed the Dollar Equivalent of $40,000,000, consisting of not more than the Dollar Equivalent of $38,000,000 of LC Exposure relating to standby Letters of Credit and not more than the Dollar Equivalent of $2,000,000 of LC Exposure relating to commercial Letters of Credit, (ii) the Canadian LC Exposure shall not exceed the Dollar Equivalent of $1,000,000, (iii) the European LC Exposure shall not exceed the Dollar Equivalent of $10,000,000, (iv) the Ex-Im LC Exposure shall not exceed $25,000,000, (v) there is positive Domestic Availability, Canadian Availability, European Availability or Ex-Im Availability, as applicable and (vi) there is positive Aggregate Availability. All Domestic Letters of Credit and Ex-Im Letters of Credit shall be issued in Dollars, provided, that up to the Dollar Equivalent of $5,000,000 of Domestic Letters of Credit may be issued in other currencies that are acceptable to the Administrative Agent and the applicable Issuing Bank. Canadian Letters of Credit shall be issued in Canadian Dollars or Dollars at the election of the Borrower Representative. European Letters of Credit shall be issued in Sterling, Euro or Dollars at the election of the Borrower Representative.
(c) Expiration Date. Each Letter of Credit shall expire (or be subject to termination or non-renewal by notice from the applicable Issuing Bank to the beneficiary thereof) at or prior to the close of business on the earliest of (i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, including, without limitation, any automatic renewal
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provision, one year after such renewal or extension), (ii) the Maturity Date and (iii) such other date agreed to by the Administrative Agent in its Permitted Discretion.
(d) Participations. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of applicable Issuing Bank or the applicable Revolving Lenders, the applicable Issuing Bank hereby grants to each applicable Revolving Lender, and each such Revolving Lender hereby acquires from such Issuing Bank, a participation in such Letter of Credit equal to such Revolving Lender's Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit. In consideration and in furtherance of the foregoing, each applicable Revolving Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the applicable Issuing Bank, such Revolving Lender's Applicable Percentage of each applicable LC Disbursement made by such Issuing Bank and not reimbursed by the applicable Borrower on the date due as provided in paragraph (e) of this Section, or of any reimbursement payment required to be refunded to such Borrower for any reason. Each Revolving Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.
(e) Reimbursement. If an Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the applicable Borrower shall reimburse such LC Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement not later than 11:00 a.m., Chicago time, with respect to any Domestic Letter of Credit or Canadian Letter of Credit, or 11:00 a.m., London time, with respect to any European Letter of Credit, in each case on the date that such LC Disbursement is made, if the Borrower Representative shall have received notice of such LC Disbursement prior to 9:00 a.m., Chicago time, or 9:00 a.m., London time, as applicable, on such date, or, if such notice has not been received by the Borrower Representative prior to such time on such date, then not later than 11:00 a.m., Chicago time, with respect to any Domestic Letter of Credit or Canadian Letter of Credit, or 11:00 a.m., London time, with respect to any European Letter of Credit, in each case on (i) the Business Day that the Company receives such notice, if such notice is received prior to 9:00 a.m., Chicago time, or 9:00 a.m., London time, as applicable, on the day of receipt, or (ii) the Business Day immediately following the day that the Borrower Representative receives such notice, if such notice is not received prior to such time on the day of receipt; provided that the applicable Borrower may, subject to the conditions to borrowing set forth herein, request in accordance with Section 2.03 or 2.05 that such payment be financed with a CBFR Borrowing, CP Borrowing, USBR Borrowing or Swingline Loan in an equivalent amount and, to the extent so financed, such Borrower's obligation to make such payment shall be discharged and replaced by the resulting Borrowing or Swingline Loan. Each LC Disbursement shall be reimbursed in (i) Canadian Dollars, if the underlying Letter of Credit was issued in Canadian Dollars, (ii) Sterling, if the underlying Letter of Credit was issued in Sterling, (iii) Euro, if the underlying Letter of Credit was issued in Euro, and (ii) Dollars, if the underlying Letter of Credit was issued in Dollars or any other currency other than Canadian Dollars, Sterling or Euro. If the applicable Borrower fails to make such payment when due, the Administrative Agent shall notify each applicable Revolving Lender of the applicable LC Disbursement, the payment then due from such Borrower in respect thereof and such Revolving Lender's Applicable Percentage thereof. Promptly following receipt of such notice, each applicable Revolving Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the applicable Borrower, in the same manner as provided in Section 2.07 with respect to Loans made by such Revolving Lender (and Section 2.07 shall apply, mutatis mutandis, to the payment obligations of the applicable Revolving Lenders), and the Administrative Agent shall promptly pay to the applicable Issuing Bank the amounts so received by it from such Revolving Lenders. Promptly following receipt by the Administrative Agent of any payment from the applicable Borrower pursuant to this paragraph, the Administrative Agent shall distribute such payment to the applicable Issuing Bank or, to the extent that Revolving Lenders have made payments pursuant to this paragraph to reimburse
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such Issuing Bank, then to such Revolving Lenders and such Issuing Bank as their interests may appear. Any payment made by a Revolving Lender pursuant to this paragraph to reimburse an Issuing Bank for any LC Disbursement (other than the funding of CBFR Revolving Loans, CP Revolving Loans, USBR Revolving Loans or Swingline Loans as contemplated above) shall not constitute a Loan and shall not relieve such Borrower of its obligation to reimburse such LC Disbursement.
(f) Obligations Absolute. Each Borrowers' obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by the applicable Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or equitable discharge of, or provide a right of setoff against, any Borrower's obligations hereunder. Neither any Agent, the Revolving Lenders nor any Issuing Bank, nor any of their Related Parties, shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the applicable Issuing Bank; provided that the foregoing shall not be construed to excuse such Issuing Bank from liability to the applicable Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Borrowers to the extent permitted by applicable law) suffered by such Borrower that are caused by such Issuing Bank's failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the applicable Issuing Bank (as finally determined by a court of competent jurisdiction), such Issuing Bank shall be deemed to have exercised care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the applicable Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.
(g) Disbursement Procedures. The applicable Issuing Bank shall, promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit. Such Issuing Bank shall promptly notify the Administrative Agent and the applicable Borrower by telephone (confirmed by facsimile) of such demand for payment and whether such Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve such Borrower of its obligation to reimburse such Issuing Bank and the applicable Revolving Lenders with respect to any such LC Disbursement.
(h) Interim Interest. If an Issuing Bank shall make any LC Disbursement, then, unless the applicable Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that such Borrower reimburses such LC Disbursement, at the rate per annum then applicable to CBFR Domestic Revolving Loans, CBFR Ex-Im Revolving Loans, CP Canadian Revolving Loans, USBR Canadian Revolving Loans or Overnight LIBO Rate European Revolving Loans, as applicable; provided that, if the applicable Borrower fails to reimburse such LC
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Disbursement when due pursuant to paragraph (e) of this Section, then Section 2.13(h) shall apply. Interest accrued pursuant to this paragraph shall be for the account of the applicable Issuing Bank, except that interest accrued on and after the date of payment by any Revolving Lender pursuant to paragraph (e) of this Section to reimburse such Issuing Bank shall be for the account of such Lender to the extent of such payment.
(i) Replacement of an Issuing Bank. Any Issuing Bank may be replaced at any time by written agreement among the Borrower Representative, the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank. The Administrative Agent shall notify the applicable Revolving Lenders of any such replacement of any Issuing Bank. At the time any such replacement shall become effective, the applicable Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.12(b). From and after the effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of such Issuing Bank under this Agreement with respect to the applicable Letters of Credit to be issued thereafter and (ii) references herein to the term "Issuing Bank" shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all previous Issuing Banks, as the context shall require. After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit.
(j) Cash Collateralization. If any Event of Default shall occur and be continuing, on the Business Day that the Borrower Representative receives notice from the Administrative Agent or the Required Lenders demanding the deposit of cash collateral pursuant to this paragraph, or at maturity of the Loans, the Company shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Domestic Revolving Lenders (the "Domestic LC Collateral Account"), an amount in cash equal to 105% of the Domestic LC Exposure as of such date plus accrued and unpaid interest thereon, the Company shall deposit in an account with the Ex-Im Revolving Lender, in the name of the Ex-Im Revolving Lender and for the benefit of the Ex-Im Revolving Lender (the "Ex-Im LC Collateral Account"), an amount in cash equal to 105% of the Ex-Im LC Exposure as of such date plus accrued and unpaid interest thereon, the Canadian Borrower shall deposit in an account with the Canadian Agent, in the name of the Canadian Agent and for the benefit of the Canadian Revolving Lenders (the "Canadian LC Collateral Account"), an amount in cash equal to 105% of the Dollar Equivalent of the Canadian LC Exposure as of such date plus accrued and unpaid interest thereon and/or the European Borrowers shall deposit in an account with the European Agent, in the name of the European Agent and for the benefit of the European Revolving Lenders (the "European LC Collateral Account"), an amount in cash equal to 105% of the Dollar Equivalent of the European LC Exposure as of such date plus accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to any Borrower described in clause (h) or (i) of Article VII. Such deposit shall be held by the applicable Agent as collateral for the payment and performance of the applicable Secured Obligations. The applicable Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account. The Company hereby grants the Administrative Agent a security interest in the Domestic LC Collateral Account, each Ex-Im Borrower hereby grants the Ex-Im Revolving Lender a security interest in the Ex-Im LC Collateral Account, the Canadian Borrower hereby grants the Canadian Agent a security interest in the Canadian LC Collateral Account and each European Borrower hereby grants the European Agent a security interest in the European LC Collateral Account (it being understood and agreed that each European Borrower shall execute and deliver such additional documents, agreements and instruments reasonably requested by the European Agent to register such security interest in the European LC Collateral Account with the relevant companies house registries). Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the applicable Agent or the Ex-Im Revolving Lender, as applicable, and at the applicable Borrower's risk and expense, such deposits shall not bear interest. Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such account shall be applied by the applicable
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Agent or the Ex-Im Revolving Lender, as applicable, to reimburse the applicable Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the applicable Borrower for the applicable LC Exposure at such time, be applied to satisfy other applicable Secured Obligations. If the Borrowers are required to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the applicable Borrower within three Business Days after all applicable Events of Default have been cured or waived.
Section 2.07 Funding of Borrowings.
(a) Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 12:00 p.m., Chicago time, with respect to any Loan on behalf of the Company or the Canadian Borrower, or 12:00 p.m., London time, with respect to any Loan on behalf of a European Borrower, in each case to the account of the applicable Agent most recently designated by it for such purpose by notice to the applicable Lenders in an amount equal to such Lender's Applicable Percentage; provided that, Swingline Loans shall be made as provided in Section 2.05. The applicable Agent or the Ex-Im Revolving Lender, as applicable, will make such Loans available to the applicable Borrower Representative by promptly crediting the amounts so received, in like funds, to the Funding Account(s); provided that CBFR Revolving Loans, CP Revolving Loans, USBR Revolving Loans and Swingline Loans made to finance the reimbursement of (i) an LC Disbursement as provided in Section 2.06(e) shall be remitted by the applicable Agent or the Ex-Im Revolving Lender, as applicable, to the applicable Issuing Bank and (ii) a Protective Advance or an Overadvance shall be retained by the applicable Agent.
(b) Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the applicable Agent such Lender's share of such Borrowing, the Agents may assume that such Lender has made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make available to the applicable Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the applicable Agent, then such Lender and the applicable Borrower severally agree to pay to such Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to such Borrower to but excluding the date of payment to such Agent, at (i) in the case of such Lender, the greater of either the Federal Funds Effective Rate (in the case of Dollar-denominated amounts), the Canadian Agent's cost of funds (in the case of Canadian Dollar-denominated amounts), the European Agent's cost of funds (in the case of Sterling-denominated amounts and Euro-denominated amounts) and a rate determined by such Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrowers, the interest rate applicable to CBFR Revolving Loans or USBR Revolving Loans, as applicable (in the case of Dollar-denominated amounts), CP Revolving Loans (in the case of Canadian Dollar-denominated amounts) or Overnight LIBO Rate Revolving Loans (in the case of Sterling-denominated amounts and Euro-denominated amounts). If such Lender pays such amount to such Agent, then such amount shall constitute such Lender's Loan included in such Borrowing.
Section 2.08 Interest Elections.
(a) Each Revolving Borrowing and Term Loan Borrowing initially shall be of the Type specified in the applicable Borrowing Request, provided that any Revolving Borrowing or Term Loan Borrowing made on the Effective Date shall be a CBFR Rate Borrowing or a Eurodollar Borrowing, as applicable. Thereafter, the Borrower Representative may elect to convert such Borrowing (other than European Revolving Loans) to a different Type or to continue such Borrowing and, in the case of a CBFR Rate Borrowing or a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this Section. The Borrower Representative may elect different options with respect to different portions of the affected
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Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing. This Section shall not apply to Swingline Borrowings, Overadvances or Protective Advances, which may not be converted or continued.
(b) To make an election pursuant to this Section, the Borrower Representative shall notify the Administrative Agent of such election by telephone by the time that a Borrowing Request would be required under Section 2.03 if a Borrower was requesting a Revolving Borrowing of the Type resulting from such election to be made on the effective date of such election or at such other times as the Borrower Representative determines with respect to Term Loan Borrowings. Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or facsimile to the Administrative Agent of a written Interest Election Request in a form approved by the Administrative Agent and signed by the Borrower Representative. Notwithstanding the foregoing, any election pursuant to this Section with respect to any European Borrower must be made in writing (and not, for the avoidance of doubt, by telephone).
(c) Each telephonic and written Interest Election Request shall specify the following information in compliance with Section 2.02:
(i) the Borrower and the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);
(ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;
(iii) whether the resulting Borrowing, (A) if it is in Dollars, is to be an CBFR Borrowing, a USBR Borrowing or a Eurodollar Borrowing, (B) if it is in Canadian Dollars, if it is to be a CP Borrowing or a CDOR Rate Borrowing, (C) if it is in Sterling, it is to be a Eurodollar Borrowing, or (D) if it is in Euro, it is to be a Eurodollar Borrowing; and
(iv) if the resulting Borrowing is a CDOR Rate Borrowing or a Eurodollar Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term "Interest Period".
If any such Interest Election Request requests a CDOR Rate Borrowing or a Eurodollar Borrowing but does not specify an Interest Period, then the Borrower Representative shall be deemed to have selected an Interest Period of 30 days' duration for a CDOR Rate Borrowing or of one month's duration for a Eurodollar Borrowing.
(d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each applicable Lender of the details thereof and of such Lender's portion of each resulting Borrowing.
(e) If the Borrower Representative fails to deliver a timely Interest Election Request with respect to a Eurodollar Borrowing (other than a Eurodollar European Revolving Loan) prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to an CBFR Borrowing or USBR Borrowing, as applicable. If the Borrower Representative fails to deliver a timely Interest Election Request with respect to a Eurodollar European Revolving Loan prior to the end of the Interest Period applicable thereto, then,
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unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall automatically be continued as a Eurodollar Borrowing with an Interest Period of one month. Notwithstanding any contrary provision hereof, if a Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower Representative, then, so long as a Default is continuing (i) no outstanding CBFR Borrowing or USBR Borrowing may be converted to or continued as a Eurodollar Borrowing, (ii) unless repaid, each Eurodollar Borrowing (other than a Eurodollar European Revolving Loan) shall be converted to a CBFR Borrowing or USBR Borrowing, as applicable, of the same Class at the end of the Interest Period applicable thereto and (iii) unless repaid, each Eurodollar European Revolving Loan shall automatically be continued as a Eurodollar Borrowing with an Interest Period of one month (or such shorter period as may be determined by the Administrative Agent in its Permitted Discretion).
(f) If the Borrower Representative fails to deliver a timely Interest Election Request with respect to a CDOR Rate Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to a CP Borrowing. Notwithstanding any contrary provision hereof, if a CP Default has occurred and is continuing and the Canadian Agent, at the request of the Required Lenders, so notifies the Borrower Representative, then, so long as a Default is continuing (i) no outstanding CP Borrowing may be converted to or continued as a CDOR Rate Borrowing and (ii) unless repaid, each CDOR Rate Borrowing shall be converted to a CP Borrowing of the same Class at the end of the Interest Period applicable thereto.
Section 2.09 Termination of Commitments; Increase in Revolving Commitments.
(a) The commitment of the Term Lenders to make the Term Loans terminated concurrently with the making of the Existing Term Loan under the Existing Credit Agreement. Unless previously terminated, (i) the Ex-Im Revolving Subcommitments shall terminate on the Commitment Termination Date (as defined in the Fast Track Loan Agreement), and (ii) all other Commitments shall terminate on the Maturity Date.
(b) The Borrowers may at any time terminate the Commitments (including the Commitments under the Fast Track Loan Agreement) upon (i) at least five Business Days' prior notice thereof to the Administrative Agent, (ii) the payment in full of all outstanding Loans, together with accrued and unpaid interest thereon and on any Letters of Credit, (iii) the cancellation and return of all outstanding Letters of Credit (or alternatively, with respect to each such Letter of Credit, the furnishing to the applicable Agent of a cash deposit (or at the discretion of such Agent a backup standby letter of credit satisfactory to the Administrative Agent) equal to 105% of the applicable LC Exposure as of such date), (iv) the payment in full of the accrued and unpaid fees, and (v) the payment in full of all reimbursable expenses and other Obligations together with accrued and unpaid interest thereon.
(c) The Borrower Representative shall notify the Administrative Agent of any election to terminate the Commitments under paragraph (b) of this Section at least five Business Days prior to the effective date of such termination, specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by the Borrower Representative pursuant to this Section shall be irrevocable; provided that a notice of termination of the Commitments delivered by the Borrower Representative may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower Representative (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. Any termination of the Commitments shall be permanent.
(d) The Borrower Representative shall have the right to increase the aggregate Domestic Revolving Commitment (with a corresponding increase in the total Commitments) by obtaining additional Domestic Revolving Commitments, either from one or more of the Lenders or other lending institutions provided that (i) any such request for an increase shall be in a minimum amount of $5,000,000 and in multiples
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of $1,000,000 in excess thereof, (ii) the aggregate amount of all such increases during the term of this Agreement shall not exceed $50,000,000, (iii) the Borrower Representative, on behalf of the Borrowers, may make a maximum of two such requests, (iv) the Administrative Agent has approved the identity of any such new Lender, such approval not to be unreasonably withheld, (v) any such new Lender assumes all of the rights and obligations of a "Lender" hereunder, and (vi) the procedure described in Section 2.09(e) has been satisfied.
(e) Any amendment hereto for such an increase or addition under Section 2.09(d) shall be in form and substance satisfactory to the Administrative Agent and shall only require the written signatures of the Administrative Agent, the Borrowers and the Lender(s) being added or increasing their Domestic Revolving Commitment, subject only to the approval of all Lenders if any such increase would cause the aggregate Domestic Revolving Commitments to exceed $280,000,000. As conditions precedent to such an increase, (I) the Borrower Representative shall deliver to the Administrative Agent a certificate of each Loan Party (in sufficient copies for each Lender) signed by an authorized officer of such Loan Party (i) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to such increase, and (ii) in the case of each Borrower, certifying that, before and after giving effect to such increase, (A) the representations and warranties contained in Article III and the other Loan Documents are true and correct, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and (B) no Default exists, (II) the conditions precedent to any Credit Extension set forth in Article IV shall be satisfied as of the date of such increase, both before and after giving effect to such increase (including without limitation that such increase or addition would be permitted under the 2011 Indenture), (III) each Lender providing an additional or increased Domestic Revolving Commitment shall have received all fees and the Administrative Agent shall have received all fees and reasonable out-of-pocket expenses (and any respective reasonable attorney's fees), in each case due and payable to such Person on or before the effectiveness of such increase and (IV) the Administrative Agent shall have received such other agreements, documents and instruments as the Administrative Agent may request, in form and substance satisfactory to the Administrative Agent.
(f) The Borrower Representative shall have the right to increase the European Revolving Subcommitment (without a corresponding increase in the total Commitments) by obtaining additional European Revolving Subcommitments from one or more of the Lenders provided that (i) any such request for an increase shall be in a minimum amount of $5,000,000 and in multiples of $1,000,000 in excess thereof, (ii) the aggregate amount of all such increases during the term of this Agreement shall not exceed $15,000,000, (iii) the Borrower Representative, on behalf of the Borrowers, may make a maximum of two such requests, and (iv) the procedure described in Section 2.09(g) has been satisfied.
(g) Any amendment hereto for such an increase under Section 2.09(f) shall be in form and substance satisfactory to the Administrative Agent and shall only require the written signatures of the Administrative Agent, the Borrowers and the Lender(s) increasing their European Revolving Subcommitment, subject only to the approval of all Lenders if any such increase would cause the aggregate European Revolving Subcommitments to exceed $25,000,000. As conditions precedent to such an increase, (I) the Borrower Representative shall deliver to the Administrative Agent a certificate of each Loan Party (in sufficient copies for each Lender) signed by an authorized officer of such Loan Party (i) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to such increase, and (ii) in the case of each Borrower, certifying that, before and after giving effect to such increase, (A) the representations and warranties contained in Article III and the other Loan Documents are true and correct, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and (B) no Default exists, (II) the conditions precedent to any Credit Extension set forth in Article IV shall be satisfied as of the date of such increase, both before and after giving effect to such increase (including without limitation that such increase or addition would be permitted under the 2011 Indenture), (III) each Lender providing an increased European Revolving Subcommitment shall have received all fees and the Administrative Agent shall have received all fees and
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reasonable out-of-pocket expenses (and any respective reasonable attorney's fees), in each case due and payable to such Person on or before the effectiveness of such increase and (IV) the Administrative Agent shall have received such other agreements, documents and instruments as the Administrative Agent may request, in form and substance satisfactory to the Administrative Agent.
(h) Within a reasonable time after the effective date of any increase, the Administrative Agent shall, and is hereby authorized and directed to, revise the Commitment Schedule to reflect such increase and shall distribute such revised Commitment Schedule to each of the Lenders and the Borrowers, whereupon such revised Commitment Schedule shall replace the old Commitment Schedule and become part of this Agreement. On the Business Day following any such increase, all outstanding CBFR Borrowings shall be reallocated among the Lenders (including any newly added Lenders) in accordance with the Lenders' respective revised Applicable Percentages. Eurodollar Borrowings shall be reallocated among the Lenders by the purchase of participations, which shall be trued up upon the expiration of the applicable Interest Period in effect at the time of any such increase.
Section 2.10 Repayment and Amortization of Loans; Evidence of Debt.
(a) The Company hereby unconditionally promises to pay to the Administrative Agent (i) for the account of each Domestic Revolving Lender the then unpaid principal amount of each Domestic Revolving Loan on the Maturity Date, (ii) the then unpaid amount of each Domestic Protective Advance on the earlier of the Maturity Date and demand by the Administrative Agent, and (iii) the then unpaid principal amount of each Domestic Overadvance on the earlier of the Maturity Date and demand by the Administrative Agent.
(b) The Ex-Im Borrowers hereby jointly and severally unconditionally promise to pay to the Administrative Agent for the account of the Ex-Im Revolving Lender the then unpaid principal amount of each Ex-Im Revolving Loan on the Maturity Date.
(c) The Canadian Borrower hereby unconditionally promises to pay to the Canadian Agent (i) for the account of each Canadian Revolving Lender the then unpaid principal amount of each Canadian Revolving Loan on the Maturity Date, (ii) the then unpaid amount of each Canadian Protective Advance on the earlier of the Maturity Date and demand by the Canadian Agent and (iii) the then unpaid amount of each Canadian Overadvance on the earlier of the Maturity Date and demand by the Canadian Agent. The Canadian Borrower shall repay all Canadian Obligations in the currency in which they were borrowed or advanced.
(d) The European Borrowers hereby jointly and severally unconditionally promise to pay to the European Agent (i) for the account of each European Revolving Lender the then unpaid principal amount of each European Revolving Loan on the Maturity Date, (ii) the then unpaid amount of each European Protective Advance on the earlier of the Maturity Date and demand by the European Agent and (iii) the then unpaid amount of each European Overadvance on the earlier of the Maturity Date and demand by the European Agent. The European Borrowers shall repay all European Obligations in the currency in which they were borrowed or advanced.
(e) The Company shall repay the Term Loans in quarterly installments on the first Business Day of each calendar quarter hereafter, commencing on October 1, 2014, in the aggregate principal amount of $573,979.60 (as adjusted from time to time pursuant to Section 2.11(f)). To the extent not previously paid, all unpaid Term Loans shall be paid in full in cash by the Company on the Maturity Date.
(f) [Reserved].
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(g) At all times that full cash dominion is in effect pursuant to Section 7.2 of the Domestic Security Agreement and as described in Article XII hereof, on each Business Day, the Administrative Agent shall apply all funds credited to the Domestic Collection Account on such Business Day or the immediately preceding Business Day (at the discretion of the Administrative Agent, whether or not immediately available) first to prepay any Domestic Protective Advances and Domestic Overadvances that may be outstanding, second to prepay the Domestic Revolving Loans (including Domestic Swingline Loans), third to cash collateralize outstanding Domestic LC Exposure, fourth to prepay pro rata any Canadian Protective Advances, Canadian Overadvances, European Protective Advances and European Overadvances that may be outstanding, fifth to prepay pro rata the Canadian Revolving Loans (including Canadian Swingline Loans) and the European Revolving Loans (including European Swingline Loans), sixth to cash collateralize outstanding Canadian LC Exposure and European LC Exposure on a pro rata basis, seventh to prepay the Ex-Im Revolving Loans, and eighth to cash collateralize Ex-Im LC Exposure. At all times that full cash dominion is in effect pursuant to the Canadian Collateral Documents and as described in Article XII hereof, on each Business Day, the Canadian Agent shall apply all funds credited to the Canadian Collection Account on such Business Day or the immediately preceding Business Day (at the discretion of the Canadian Agent, whether or not immediately available) first to prepay any Canadian Protective Advances and Canadian Overadvances that may be outstanding, second to prepay the Canadian Revolving Loans (including Canadian Swingline Loans), third, to cash collateralize outstanding Canadian LC Exposure, fourth to prepay any European Protective Advances and European Overadvances that may be outstanding, fifth to prepay the European Revolving Loans (including European Swingline Loans), and sixth to cash collateralize outstanding European LC Exposure. At all times, on each Business Day, the European Agent shall apply all funds credited to the European Collection Account on such Business Day or the immediately preceding Business Day (at the discretion of the European Agent, whether or not immediately available) first to prepay any European Protective Advances and European Overadvances that may be outstanding, second to prepay the European Revolving Loans (including European Swingline Loans), third, to cash collateralize outstanding European LC Exposure, fourth to prepay any Canadian Protective Advances and Canadian Overadvances that may be outstanding, fifth to prepay the Canadian Revolving Loans (including Canadian Swingline Loans), and sixth to cash collateralize outstanding Canadian LC Exposure.
(h) Each Obligation shall be paid in Dollars or, (i) to the extent originally denominated in Canadian Dollars, in Canadian Dollars, (ii) to the extent originally denominated in Sterling, in Sterling and (iii) to the extent originally denominated in Euro, in Euro.
(i) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of each 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.
(j) The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each applicable Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from each Borrower to each Lender hereunder and (iii) the amount of any sum received by each Agent hereunder for the account of the Lenders and each Lender's share thereof.
(k) The entries made in the accounts maintained pursuant to paragraph (h) or (i) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or any Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrowers to repay the Loans in accordance with the terms of this Agreement.
(l) Any Lender may request that Loans made by it be evidenced by one or more promissory notes. In such event, the Administrative Agent shall prepare, and the applicable Borrower or
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Borrowers shall execute and deliver to such Lender one or more promissory notes payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative Agent. Thereafter, the Loans evidenced by such promissory notes and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or more promissory notes in such form payable to the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns). The Ex-Im Revolving Loans shall be evidenced by a promissory note payable to the order of the Ex-Im Revolving Lender (the "Ex-Im Note").
Section 2.11 Prepayment of Loans.
(a) The Borrowers shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance with paragraph (f) of this Section.
(b) Except for Domestic Overadvances permitted under Section 2.05, in the event and on such occasion that the total Domestic Revolving Exposure exceeds any of the limits or sublimits contained in Section 2.01(a), the Company shall prepay the Domestic Revolving Loans, Domestic LC Exposure and/or Domestic Swingline Loans in an aggregate amount equal to such excess. Except for Canadian Overadvances permitted under Section 2.05, in the event and on such occasion that the total Canadian Revolving Exposure exceeds any of the limits or sublimits contained in Section 2.01(b), the Canadian Borrower shall prepay the Canadian Revolving Loans, Canadian LC Exposure and/or Canadian Swingline Loans in an aggregate amount equal to such excess. Except for European Overadvances permitted under Section 2.05, in the event and on such occasion that the total European Revolving Exposure exceeds any of the limits or sublimits contained in Section 2.01(c), the European Borrowers shall prepay the European Revolving Loans, European LC Exposure and/or European Swingline Loans in an aggregate amount equal to such excess. In the event and on such occasion that the total Ex-Im Revolving Exposure exceeds any of the limits or sublimits contained in Section 2.01(d), the Ex-Im Borrowers shall prepay the Ex-Im Revolving Loans and/or Ex-Im LC Exposure in an aggregate amount equal to such excess.
(c) (i) In the event and on each occasion that Net Proceeds are received by or on behalf of any Loan Party in respect of any Prepayment Event, the Borrowers shall, within ten (10) Business Days after such Net Proceeds are received by such Loan Party, prepay the Obligations as set forth in Section 2.11(f) below in an aggregate amount equal to 100% of such Net Proceeds, provided that, in the case of any event described in clause (a) or (b) of the definition of the term "Prepayment Event", if the Borrower Representative shall deliver to the Administrative Agent a certificate of a Financial Officer to the effect that the Domestic Loan Parties intend to apply the Net Proceeds from such event (or a portion thereof specified in such certificate), within 270 days after receipt of such Net Proceeds, to acquire (or replace or rebuild) Real Property, Equipment or other tangible assets (excluding Inventory) to be used in the business of the Loan Parties, and certifying that no Default has occurred and is continuing, then either (i) so long as full cash dominion is not in effect, no prepayment shall be required pursuant to this paragraph in respect of the Net Proceeds specified in such certificate or (ii) if full cash dominion is in effect, if the Net Proceeds specified in such certificate are to be applied by (A) the Company, then such Net Proceeds shall be applied by the Administrative Agent to reduce the outstanding principal balance of the Domestic Revolving Loans (without a permanent reduction of the Domestic Revolving Commitment) and upon such application, the Administrative Agent shall establish a Reserve against the Domestic Borrowing Base in an amount equal to the amount of such proceeds so applied, (B) the Canadian Borrower, then such Net Proceeds shall be applied by the Canadian Agent to reduce the outstanding principal balance of the Canadian Revolving Loans (without a permanent reduction of the Canadian Revolving Subcommitment) and upon such application, the Canadian Agent shall establish a Reserve against the Canadian Borrowing Base in an amount equal to the account of such proceeds so applied, (C) any European Borrower, then such Net Proceeds shall be applied by the European Agent to reduce the outstanding principal balance of the European Revolving Loans (without a permanent reduction of the European Revolving Subcommitment) and upon such application, the European Agent shall establish a Reserve against the European Borrowing Base in an amount equal to the account of such proceeds so applied,
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and (D) any Loan Party that is not a Borrower, then such Net Proceeds shall be deposited in a cash collateral account and in either case, thereafter, such funds shall be made available to the applicable Loan Party as follows:
(x) the Borrower Representative shall request a Revolving Loan (specifying that the request is to use Net Proceeds pursuant to this Section) or the applicable Loan Party shall request a release from the cash collateral account be made in the amount needed;
(y) so long as the conditions set forth in Article IV have been met, the applicable Revolving Lenders shall make such Revolving Loan or the applicable Agent shall release funds from the cash collateral account; and
(z) in the case of Net Proceeds applied against a Revolving Loan, the Reserve established with respect to such insurance proceeds shall be reduced by the amount of such Revolving Loan;
provided that to the extent any Net Proceeds therefrom have not been so applied by the end of such 270‑day period, at which time a prepayment shall be required in an amount equal to such Net Proceeds that have not been so applied (and the amount of any Reserve established with respect to any such proceeds shall be reduced by the amount of such payment); provided, further that the Borrowers shall not be permitted to make elections to use Net Proceeds to acquire (or replace or rebuild) Real Property, Equipment or other tangible assets (excluding Inventory) with respect to Net Proceeds in any fiscal year in an aggregate amount in excess of $2,500,000.
(d) [Reserved].
(e) In the event that Equipment appraisals obtained by the Administrative Agent after the Effective Date reflect that the Fixed Asset Loanable Value is less than the then aggregate outstanding principal balance of the Term Loans, at the Administrative Agent's option, either (i) the Administrative Agent shall establish a Reserve against the Domestic Borrowing Base in the amount of such shortfall or (ii) the Company shall promptly after demand therefor by the Administrative Agent prepay the Loans by the amount of such shortfall, with such prepayment to be applied to prepay the Term Loans (to be applied to installments thereof in the inverse order of their maturity).
(f) All amounts to be paid under Section 2.11(c) shall be applied as follows:
(i) All amounts to be paid under Section 2.11(c) and representing Net Proceeds of a Prepayment Event involving the sale or loss to Real Property or Equipment owned by a Domestic Loan Party, shall be applied first, to prepay any Protective Advances and Overadvances that may be outstanding, pro rata, second, to prepay the Domestic Revolving Loans (including Domestic Swingline Loans) without a corresponding reduction in the Domestic Revolving Commitment and to cash collateralize outstanding Domestic LC Exposure, third, to prepay pro rata the Canadian Revolving Loans (including Canadian Swingline Loans) and the European Revolving Loans (including European Swingline Loans) without a corresponding reduction in the Canadian Revolving Subcommitment or European Revolving Subcommitment, as applicable, and to cash collateralize outstanding Canadian LC Exposure and European LC Exposure on a pro rata basis, and fourth, to prepay the Ex-Im Revolving Loans without a corresponding reduction in the Ex-Im Revolving Subcommitment and to cash collateralize outstanding Ex-Im LC Exposure.
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(ii) All amounts to be paid under Section 2.11(c) and representing Net Proceeds of a Prepayment Event involving the sale of Eligible Export-Related Accounts or the sale or loss to Eligible Export-Related Inventory, shall be applied first, to prepay any Protective Advances and Overadvances that may be outstanding, pro rata, second, to prepay the Ex-Im Revolving Loans without a corresponding reduction in the Ex-Im Revolving Subcommitment and to cash collateralize outstanding Ex-Im LC Exposure, third, to prepay the Domestic Revolving Loans (including Domestic Swingline Loans) without a corresponding reduction in the Domestic Revolving Commitment and to cash collateralize outstanding Domestic LC Exposure and fourth, to prepay pro rata the Canadian Revolving Loans (including Canadian Swingline Loans) and the European Revolving Loans (including European Swingline Loans) without a corresponding reduction in the Canadian Revolving Subcommitment or European Revolving Subcommitment, as applicable, and to cash collateralize outstanding Canadian LC Exposure and European LC Exposure on a pro rata basis.
(iii) All amounts to be paid under Section 2.11(c) and representing Net Proceeds of a Prepayment Event involving the sale of Equity Interests of a Subsidiary (including an Excluded Subsidiary and a Designated Subsidiary), shall be applied (A) with respect to the Equity Interests of a Subsidiary other than a Designated Subsidiary, first, to prepay any Protective Advances and Overadvances that may be outstanding, pro rata, second, if such Subsidiary owned Eligible Accounts or Eligible Inventory, to prepay, as applicable, the Domestic Revolving Loans (including Domestic Swingline Loans) without a corresponding reduction in the Domestic Revolving Commitment and to cash collateralize outstanding Domestic LC Exposure, the Canadian Revolving Loans (including Canadian Swingline Loans) without a corresponding reduction in the Canadian Revolving Commitment and to cash collateralize outstanding Canadian LC Exposure, or the European Revolving Loans (including European Swingline Loans) without a corresponding reduction in the European Revolving Commitment and to cash collateralize outstanding European LC Exposure, in each case to the extent of the amount of outstanding Loans predicated on the value of such assets, third, if such Subsidiary owned Eligible Export-Related Accounts or Eligible Export-Related Inventory, to prepay the Ex-Im Revolving Loans without a corresponding reduction in the Ex-Im Revolving Subcommitment and to cash collateralize outstanding Ex-Im LC Exposure, to the extent of the amount of outstanding Loans predicated on the value of such assets, fourth, to prepay the Domestic Revolving Loans (including Domestic Swingline Loans) without a corresponding reduction in the Domestic Revolving Commitment and to cash collateralize outstanding Domestic LC Exposure, fifth, to prepay pro rata the Canadian Revolving Loans (including Canadian Swingline Loans) and the European Revolving Loans (including European Swingline Loans) without a corresponding reduction in the Canadian Revolving Subcommitment or European Revolving Subcommitment, as applicable, and to cash collateralize outstanding Canadian LC Exposure and European LC Exposure on a pro rata basis, and sixth, to prepay the Ex-Im Revolving Loans without a corresponding reduction in the Ex-Im Revolving Subcommitment and to cash collateralize outstanding Ex-Im LC Exposure; and (B) with respect to the Equity Interests of a Designated Subsidiary, first, to prepay any Protective Advances and Overadvances that may be outstanding, pro rata, and second, to prepay the Domestic Revolving Loans (including Domestic Swingline Loans) without a corresponding reduction in the Domestic Revolving Commitment, and third, to prepay the Ex-Im Revolving Loans without a corresponding reduction in the Ex-Im Revolving Subcommitment.
(iv) All amounts to be paid under Section 2.11(c) and representing Net Proceeds of a Prepayment Event involving the sale or loss to any property of the Domestic Loan Parties other than Eligible Export-Related Inventory, Eligible Export-Related Accounts,
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Real Property, Equipment and Equity Interests, shall be applied first, to prepay any Protective Advances and Overadvances that may be outstanding, pro rata, second, to prepay the Domestic Revolving Loans (including Domestic Swingline Loans) without a corresponding reduction in the Domestic Revolving Commitment and to cash collateralize outstanding Domestic LC Exposure, third, to prepay pro rata the Canadian Revolving Loans (including Canadian Swingline Loans) and European Revolving Loans (including European Swingline Loans) without a corresponding reduction in the Canadian Revolving Subcommitment or European Revolving Subcommitment, as applicable, and to cash collateralize outstanding Canadian LC Exposure and European LC Exposure on a pro rata basis and fourth, to prepay the Ex-Im Revolving Loans without a corresponding reduction in the Ex-Im Revolving Subcommitment and to cash collateralize outstanding Ex-Im LC Exposure.
(v) All amounts to be paid under Section 2.11(c) and representing Net Proceeds of a Prepayment Event involving the sale or loss to any property of the Canadian Loan Parties shall be applied first, to prepay any Canadian Protective Advances and Canadian Overadvances that may be outstanding, pro rata, second, to prepay the Canadian Revolving Loans (including Canadian Swingline Loans) without a corresponding reduction in the Canadian Revolving Subcommitment and to cash collateralize outstanding Canadian LC Exposure, third, to prepay any European Protective Advances and European Overadvances that may be outstanding, pro rata, and fourth, to prepay the European Revolving Loans (including European Swingline Loans) without a corresponding reduction in the European Revolving Subcommitment and to cash collateralize outstanding European LC Exposure.
(vi) All amounts to be paid under Section 2.11(c) and representing Net Proceeds of a Prepayment Event involving the sale or loss to any property of the European Loan Parties shall be applied first, to prepay any European Protective Advances and European Overadvances that may be outstanding, pro rata, second, to prepay the European Revolving Loans (including European Swingline Loans) without a corresponding reduction in the European Revolving Subcommitment and to cash collateralize outstanding European LC Exposure, third, to prepay any Canadian Protective Advances and Canadian Overadvances that may be outstanding, pro rata, and fourth, to prepay the Canadian Revolving Loans (including Canadian Swingline Loans) without a corresponding reduction in the Canadian Revolving Subcommitment and to cash collateralize outstanding Canadian LC Exposure.
If the precise amount of insurance or condemnation proceeds allocable to different types of property is not otherwise determined, the allocation and application of those proceeds shall be determined by the Administrative Agent, in its Permitted Discretion.
(g) The Borrower Representative shall notify the Administrative Agent (and, in the case of prepayment of a Swingline Loan, the applicable Swingline Lender) by telephone (confirmed by facsimile) of any prepayment hereunder (i) in the case of prepayment of a Eurodollar Borrowing or a CDOR Rate Borrowing, not later than 10:00 a.m., Chicago time, three Business Days before the date of prepayment, or (ii) in the case of prepayment of a CBFR Borrowing, a CP Borrowing or a USBR Borrowing, not later than 10:00 a.m., Chicago time, on the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment is given in connection with a conditional notice of termination of the Commitments as contemplated by Section 2.09, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.09. Promptly following receipt of any such notice relating to a Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Revolving Borrowing shall be in an amount that would be permitted in the case of an advance of a Revolving Borrowing of the same Type as provided in Section 2.02. Each prepayment
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of a Revolving Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by Section 2.13.
Section 2.12 Fees.
(a) (i) The Company agrees to pay to the Administrative Agent for the account of each Revolving Lender a commitment fee, which shall accrue at the Applicable Fee Rate on the average daily amount of the Available Revolving Commitment of such Revolving Lender during the period from and including the Effective Date to but excluding the date on which the Revolving Lenders' Revolving Commitments terminate. Such accrued commitment fees shall be payable in arrears on the first Business Day in each calendar month and on the date on which the Revolving Commitments terminate, commencing on the first such date to occur after the Effective Date. All such commitment fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed.
(i) On the Ex-Im Effective Date and on each anniversary thereof, the Ex-Im Borrowers jointly and severally agree to pay to the Administrative Agent for the account of the Ex-Im Revolving Lender, for its own account, an annual facility fee equal to 1.50% of the Ex-Im Revolving Lender's Ex-Im Revolving Subcommitment on each such day. Each such facility fee shall be fully earned and nonrefundable when due. The Ex-Im Borrowers jointly and severally also agree to pay to the Administrative Agent, for payment to Ex-Im Bank, on a timely basis, all fees and other charges assessed by Ex-Im Bank in connection with the Ex-Im Revolving Loan facility.
(b) (i) The Company agrees to pay to the Administrative Agent for the account of each Domestic Revolving Lender a participation fee with respect to its participations in Domestic Letters of Credit, which shall accrue at the same Applicable Rate used to determine the interest rate applicable to Eurodollar Domestic Revolving Loans on the average daily amount of such Domestic Revolving Lender's Domestic LC Exposure (excluding any portion thereof attributable to unreimbursed Domestic LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which such Domestic Revolving Lender's Domestic Revolving Commitment terminates and the date on which such Domestic Revolving Lender ceases to have any Domestic LC Exposure, (ii) the Canadian Borrower agrees to pay to the Canadian Agent for the account of each Canadian Revolving Lender a participation fee with respect to its participations in Canadian Letters of Credit, which shall accrue at the same Applicable Rate used to determine the interest rate applicable to Eurodollar Canadian Revolving Loans in the case of Dollar-denominated Letters of Credit and the interest rate applicable to CDOR Rate Canadian Revolving Loans in the case of Canadian Dollar-denominated Letters of Credit, on the average daily amount of such Canadian Revolving Lender's Canadian LC Exposure (excluding any portion thereof attributable to unreimbursed Canadian LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which such Canadian Revolving Lender's Canadian Revolving Subcommitment terminates and the date on which such Canadian Revolving Lender ceases to have any Canadian LC Exposure, (iii) the European Borrowers jointly and severally agree to pay to the European Agent for the account of each European Revolving Lender a participation fee with respect to its participations in European Letters of Credit, which shall accrue at the same Applicable Rate used to determine the interest rate applicable to Eurodollar European Revolving Loans, on the average daily amount of such European Revolving Lender's European LC Exposure (excluding any portion thereof attributable to unreimbursed European LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which such European Revolving Lender's European Revolving Subcommitment terminates and the date on which such European Revolving Lender ceases to have any European LC Exposure, (iv) the Ex-Im Borrowers jointly and severally agree to pay to the Administrative Agent for the account of the Ex-Im Revolving Lender, for its own account, a participation fee with respect to its participations in Ex-Im Letters of Credit, which shall accrue at the same Applicable Rate used to determine the interest rate applicable to Eurodollar Ex-Im Revolving Loans on the
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average daily amount of the Ex-Im Revolving Lender's Ex-Im LC Exposure (excluding any portion thereof attributable to unreimbursed Ex-Im LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which the Ex-Im Revolving Lender's Ex-Im Revolving Subcommitment terminates and the date on which the Ex-Im Revolving Lender ceases to have any Ex-Im LC Exposure, and (v) each applicable Borrower agrees to pay to each applicable Issuing Bank a fronting fee, which shall accrue at the rate of 0.125% per annum on the average daily amount of the applicable LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date of termination of the Revolving Commitments and the date on which there ceases to be any applicable LC Exposure, as well as such Issuing Bank's standard fees with respect to the issuance, amendment, renewal or extension of any applicable Letter of Credit or processing of drawings thereunder. Participation fees and fronting fees accrued through and including the last day of each calendar month shall be payable on the first Business Day in each calendar month following such last day, commencing on the first such date to occur after the Effective Date; provided that all such fees shall be payable on the date on which the Revolving Commitments terminate and any such fees accruing after the date on which the Revolving Commitments terminate shall be payable on demand. Any other fees payable to any Issuing Bank pursuant to this paragraph shall be payable within 10 days after demand. All participation fees and fronting fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed.
(c) The Borrowers agree to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Borrowers and the Administrative Agent.
(d) All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the applicable Agent, in the case of fees payable to it, or to the applicable Issuing Bank, in the case of fees payable to it, for distribution, in the case of commitment fees and participation fees, to the applicable Lenders. Fees paid shall not be refundable under any circumstances.
Section 2.13 Interest.
(a) The Loans comprising each CBFR Borrowing (including each Domestic Swingline Loan) shall bear interest at the CB Floating Rate plus the Applicable Rate.
(b) The Loans comprising each USBR Borrowing (including each Canadian Swingline Loan) shall bear interest at the US Base Rate (Canada) plus the Applicable Rate.
(c) The Loans comprising each CP Borrowing (including each Canadian Swingline Loan) shall bear interest at the Canadian Prime Rate plus the Applicable Rate.
(d) The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.
(e) The Loans comprising each CDOR Rate Borrowing shall bear interest at the CDOR Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.
(f) The Loans comprising each Overnight LIBO Rate Borrowing (including each European Swingline Loan) shall bear interest at the Overnight LIBO Rate plus the Applicable Rate.
(g) Each Domestic Protective Advance and each Domestic Overadvance shall bear interest at the CB Floating Rate plus the Applicable Rate for Domestic Revolving Loans plus 2%. Each Canadian Protective Advance and each Canadian Overadvance denominated in Canadian Dollars shall bear interest at the Canadian Prime Rate plus the Applicable Rate for Canadian Revolving Loans plus 2%. Each Canadian Protective Advance and each Canadian Overadvance denominated in Dollars shall bear interest
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at the US Base Rate (Canada) plus the Applicable Rate for Canadian Revolving Loans plus 2%. Each European Protective Advance and each European Overadvance shall bear interest at the Overnight LIBO Rate plus the Applicable Rate for European Revolving Loans plus 2%.
(h) Notwithstanding the foregoing, during the occurrence and continuance of an Event of Default, the Administrative Agent or the Required Lenders may, at its or their option, by notice to the Borrower Representative (which notice may be revoked at the option of the Required Lenders notwithstanding any provision of Section 9.02 requiring the consent of "each Lender affected thereby" for reductions in interest rates), declare that (i) all Loans shall bear interest at 2% plus the rate otherwise applicable to such Loans as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount outstanding hereunder, such amount shall accrue at 2% plus the rate applicable to such fee or other obligation as provided hereunder.
(i) Accrued interest on each Loan (for CBFR Loans, CP Loans, USBR Loans and Overnight LIBO Rate Loans, accrued through the last day of the prior calendar month) shall be payable in arrears on each Interest Payment Date for such Loan and upon termination of the Commitments; provided that (i) interest accrued pursuant to paragraph (e) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of a CBFR Revolving Loan, a CP Revolving Loan or a USBR Revolving Loan prior to the end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any Eurodollar Loan or any CDOR Rate Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion.
(j) All interest hereunder shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed. For the purposes of the Interest Act (Canada) and disclosure thereunder, (i) whenever any interest under this Agreement or any other Loan Documents is calculated using a rate based on a year of 360 days, the rate determined pursuant to such calculation, when expressed as an annual rate, is equivalent to (x) the applicable rate, (y) multiplied by the actual number of days in the calendar year in which the period for which such interest is payable (or compounded) ends, and (z) divided by 360; (ii) the principle of deemed reinvestment of interest does not apply to any interest calculation under this Agreement; and (iii) the rates of interest stipulated in this Agreement are intended to be nominal rates and not effective rates or yields. The applicable CB Floating Rate, Adjusted LIBO Rate, LIBO Rate or Overnight LIBO Rate shall be determined by the Administrative Agent and the applicable Canadian Prime Rate, US Base Rate (Canada) or CDOR Rate shall be determined by the Canadian Agent, and each such determination shall be conclusive absent manifest error.
Section 2.14 Alternate Rate of Interest.
(a) If prior to the commencement of any Interest Period for a Eurodollar Borrowing:
(i) the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period; or
(ii) the Administrative Agent is advised by the Required Lenders and/or the Required European Lenders that the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in such Borrowing for such Interest Period;
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then the Administrative Agent shall give notice thereof to the Borrower Representative and the Lenders by telephone or facsimile as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower Representative and the Lenders that the circumstances giving rise to such notice no longer exist, (A) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective, (B) if any Borrowing Request requests a Eurodollar Borrowing on behalf of the Company, an Ex-Im Borrower or the Canadian Borrower, such Borrowing shall be made as a CBFR Borrowing, in the case of a Borrowing by the Company or an Ex-Im Borrower, or a USBR Borrowing in the case of a Borrowing by the Canadian Borrower and (C) in the case of any Eurodollar Borrowing to any European Borrower then outstanding, each such Eurodollar Borrowing shall be repaid on the last day of the then current Interest Period applicable thereto.
(b) If prior to the commencement of any Interest Period for a CDOR Rate Borrowing:
(i) the Canadian Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the CDOR Rate for such Interest Period; or
(ii) the Canadian Agent is advised by the Required Canadian Lenders that the CDOR Rate for such Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in such Borrowing for such Interest Period;
the Canadian Agent shall give notice thereof to the Borrower Representative and the Canadian Revolving Lenders by telephone or facsimile as promptly as practicable thereafter, and, until the Canadian Agent notifies the Borrower Representative and the Canadian Revolving Lenders that the circumstances giving rise to such notice no longer exist, (A) any Interest Election Request that requests the conversion of any Borrowing to, or continuation for any Borrowing as, a CDOR Rate Borrowing shall be ineffective, and (B) if any Borrowing Request requests a CDOR Borrowing, such Borrowing shall be made as a CP Borrowing.
(c) If at any time the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Overnight LIBO Rate or the Overnight LIBO Rate will not adequately and fairly reflect the cost to the Administrative Agent or the European Swingline Lender, as applicable, of making or maintaining European Protective Advances or European Swingline Loans, the Administrative Agent or European Swingline Lender, as applicable, shall give notice thereof to the Borrower Representative and the European Revolving Lenders by telephone or facsimile as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower Representative and the European Revolving Lenders that the circumstances giving rise to such notice no longer exist, Overnight LIBO Borrowings shall be made as Alternate Rate Borrowings.
Section 2.15 Increased Costs.
(a) If any Change in Law shall:
(iii) impose, modify or deem applicable any reserve, special deposit, liquidity or similar requirement (including any compulsory loan requirement, insurance charge or other assessment) against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or any Issuing Bank; or
(iv) impose on any Lender or any Issuing Bank or the London interbank market any other condition affecting this Agreement or CDOR Rate Loans or Eurodollar Loans made by such Lender or any Letter of Credit or participation therein;
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and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any CDOR Rate Loans or Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to increase the cost to such Lender or such Issuing Bank of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or such Issuing Bank hereunder (whether of principal, interest or otherwise), then the Borrowers will pay to such Lender or such Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuing Bank, as the case may be, for such additional costs incurred or reduction suffered.
(b) If any Lender or any Issuing Bank determines that any Change in Law regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender's or such Issuing Bank's capital or on the capital of such Lender's or such Issuing Bank's holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by such Issuing Bank, to a level below that which such Lender or such Issuing Bank or such Lender's or the Issuing Bank's holding company could have achieved but for such Change in Law (taking into consideration such Lender's or such Issuing Bank's policies and the policies of such Lender's or such Issuing Bank's holding company with respect to capital adequacy), then from time to time the Borrowers will pay to such Lender or such Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuing Bank or such Lender's or such Issuing Bank's holding company for any such reduction suffered.
(c) A certificate of a Lender or an Issuing Bank setting forth the amount or amounts necessary to compensate such Lender or such Issuing Bank or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section shall be delivered to the Borrower Representative and shall be conclusive absent manifest error. The Borrowers shall pay such Lender or such Issuing Bank, as the case may be, the amount shown as due on any such certificate within 15 days after receipt thereof.
(d) Failure or delay on the part of any Lender or any Issuing Bank to demand compensation pursuant to this Section shall not constitute a waiver of such Lender's or such Issuing Bank's right to demand such compensation; provided that the Borrowers shall not be required to compensate a Lender or an Issuing Bank pursuant to this Section for any increased costs or reductions incurred more than 270 days prior to the date that such Lender or such Issuing Bank, as the case may be, notifies the Borrower Representative of the Change in Law giving rise to such increased costs or reductions and of such Lender's or such Issuing Bank's intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof.
Section 2.16 Break Funding Payments.
In the event of (a) the payment of any principal of any Eurodollar Loan or any CDOR Rate Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan or any CDOR Rate Loan or other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurodollar Loan or any CDOR Rate Loan on the date specified in any notice delivered pursuant hereto, or (d) the assignment of any Eurodollar Loan or any CDOR Rate Loan, other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower Representative pursuant to Section 2.19, then, in any such event, the applicable Borrower shall compensate each applicable Lender for the loss, cost and expense attributable to such event. In the case of a Eurodollar Loan or a CDOR Rate Loan, such loss, cost or expense 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 Adjusted LIBO Rate or the CDOR Rate, as applicable, 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, in the case of a failure to borrow, convert or continue, for the period that would have
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been the Interest Period for such 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 to such Eurodollar Loan from other banks in the eurodollar market or for Canadian Dollar deposits of a comparable amount and period to such CDOR Rate Loan from other banks in the Canadian bankers' acceptance 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 Representative and shall be conclusive absent manifest error. The applicable Borrower shall pay such Lender the amount shown as due on any such certificate within 15 days after receipt thereof.
Section 2.17 Taxes.
(a) Any and all payments by or on account of any obligation of each Borrower hereunder shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if the Borrowers shall be required by applicabe law to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) the applicable Agent, Lender or Issuing Bank (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the applicable Borrower shall make such deductions and (iii) the applicable Borrower shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law.
(b) In addition, the applicable Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law.
(c) The applicable Borrower shall indemnify each Agent, each Lender and each Issuing Bank, within 15 days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by such Agent, such Lender or such Issuing Bank, as the case may be, on or with respect to any payment by or on account of any obligation of such Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower Representative by a Lender or an Issuing Bank, or by an Agent on its own behalf or on behalf of a Lender or an Issuing Bank, shall be conclusive absent manifest error.
(d) Each Lender and each Issuing Bank shall indemnify the Borrowers and the Agents, within 15 days after written demand therefor, against any and all Taxes and any and all related losses, claims, liabilities, penalties, interest and reasonable expenses (including the fees, charges and disbursements of any counsel for the Borrowers or the Agents) incurred by or asserted against the Borrowers or the Agents by any Governmental Authority as a result of the failure by such Lender or such Issuing Bank, as the case may be, to deliver, or as a result of the inaccuracy, inadequacy or deficiency of, any documentation required to be delivered to the Borrowers or the Agents pursuant to Section 2.17(f). Each Lender and each Issuing Bank hereby authorizes the Agents to set off and apply any and all amounts at any time owing to such Lender or such Issuing Bank, as the case may be, under this Agreement or any other Loan Document against any amount due to the Agents under this Section 2.17(d).
(e) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by any Borrower to a Governmental Authority, the Borrower Representative shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.
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(f) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which any Borrower is located, or any treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to the Borrower Representative (with a copy to the Administrative Agent), at the time or times prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law or reasonably requested by the Borrower Representative as will permit such payments to be made without withholding or at a reduced rate.
(g) If any Agent or any Lender determines, in its sole discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrowers or with respect to which the Borrowers have paid additional amounts pursuant to this Section 2.17, it shall pay over such refund to the applicable Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by such Borrower under this Section 2.17 with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of such Agent or such Lender and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided, that each Borrower, upon the request of such Agent or such Lender, agree to repay the amount paid over to such Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to such Agent or such Lender in the event such Agent or such Lender is required to repay such refund to such Governmental Authority. This Section shall not be construed to require any Agent or any Lender to make available its tax returns (or any other information relating to its taxes which it deems confidential) to the Borrowers or any other Person.
Section 2.18 Payments Generally; Allocation of Proceeds; Sharing of Set-offs.
(a) Each Borrower shall make each payment required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.15, 2.16 or 2.17, or otherwise) prior to noon, Chicago time, on the date when due, in immediately available funds, without set‑off or counterclaim. Any amounts received after such time on any date may, in the discretion of the applicable Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at its offices at 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx, except payments (i) of interest in respect of Canadian Revolving Loans and payments of Letter of Credit participation fees in respect of Canadian Letters of Credit, which shall be made to the Canadian Agent, (ii) of interest in respect of European Revolving Loans and payments of Letter of Credit participation fees in respect of European Letters of Credit, which shall be made to the European Agent, (iii) to be made directly to an Issuing Bank or a Swingline Lender as expressly provided herein and (iv) that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto. The applicable Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension.
(b) Any proceeds of Collateral of the Domestic Loan Parties received by any Agent (i) not constituting either (A) a specific payment of principal, interest, fees or other sum payable under the Loan Documents (which shall be applied as specified by the Borrower Representative), (B) a mandatory prepayment (which shall be applied in accordance with Section 2.11) or (C) amounts to be applied from a Collection Account when full cash dominion is in effect (which shall be applied in accordance with Section 2.10) or (ii) after an Event of Default has occurred and is continuing and the Administrative Agent so elects or the Required Lenders so direct, such funds shall be applied ratably first, to pay any fees, indemnities, or expense reimbursements including amounts then due to the Agents and the Issuing Banks from the Borrowers (other than in connection with Banking Services Obligations or Swap Obligations), second, to pay any fees or expense reimbursements then due to the Lenders from the Borrowers (other than in connection with Banking Services or Swap Obligations), third, to pay interest due in respect of Overadvances and Protective
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Advances, fourth, to pay the principal of Overadvances and Protective Advances, fifth, to pay interest then due and payable on the Loans (other than the Overadvances and Protective Advances) ratably, sixth, to prepay principal on the Loans (other than the Overadvances, Protective Advances and Ex-Im Revolving Loans) and unreimbursed LC Disbursements (other than unreimbursed Ex-Im LC Disbursements) ratably (with amounts applied to the Term Loans applied to installments of the Term Loans in inverse order of maturity), seventh, to pay ratably amounts to the Agents equal to 105% of the aggregate undrawn face amount of all outstanding Letters of Credit (other than Ex-Im Letters of Credit) and the aggregate amount of any unpaid LC Disbursements (other than unpaid Ex-Im LC Disbursements), to be held as cash collateral for such Obligations, eighth, to payment of any amounts owing with respect to Banking Services Obligations and Swap Obligations, ninth, to the payment of any other Secured Obligation due to any Agent or any Lender by the Borrowers, tenth, to prepay principal on the Ex-Im Revolving Loans and unreimbursed Ex-Im LC Disbursements ratably, and eleventh, to pay amounts to the Administrative Agent equal to 105% of the aggregate undrawn face amount of all outstanding Ex-Im Letters of Credit and the aggregate amount of any unpaid Ex-Im LC Disbursements, to be held as cash collateral for such obligations. Notwithstanding the foregoing, (i) amounts received from any Domestic Loan Party shall not be applied to any Excluded Swap Obligation of such Domestic Loan Party and (ii) any such applicable proceeds from property of the Domestic Loan Parties shall be applied first pro rata to the Secured Obligations constituting Domestic Obligations and Ex-Im Obligations in the same order set forth above before being applied to any other Secured Obligations.
(c) Any proceeds of Collateral of the Canadian Loan Parties received by any Agent (i) not constituting either (A) a specific payment of principal, interest, fees or other sum payable under the Loan Documents (which shall be applied as specified by the Borrower Representative), (B) a mandatory prepayment (which shall be applied in accordance with Section 2.11) or (C) amounts to be applied from the Canadian Collection Account when full cash dominion is in effect (which shall be applied in accordance with Section 2.10) or (ii) after an Event of Default has occurred and is continuing and the Administrative Agent so elects or the Required Lenders so direct, such funds shall be applied ratably first, to pay any fees, indemnities, or expense reimbursements including amounts then due to the Agents and the Canadian Issuing Bank from the Canadian Borrower (other than in connection with Banking Services Obligations or Swap Obligations), second, to pay any fees or expense reimbursements then due to the Canadian Revolving Lenders from the Canadian Borrower (other than in connection with Banking Services Obligations or Swap Obligations), third, to pay interest due in respect of Canadian Overadvances and Canadian Protective Advances, fourth, to pay the principal of Canadian Overadvances and Canadian Protective Advances, fifth, to pay interest then due and payable on the Canadian Revolving Loans, sixth, to prepay principal on the Canadian Revolving Loans and unreimbursed Canadian LC Disbursements ratably, seventh, to pay an amount to the Canadian Agent equal to 105% of the aggregate undrawn face amount of all outstanding Canadian Letters of Credit and the aggregate amount of any unpaid Canadian LC Disbursements, to be held as cash collateral for such Obligations, eighth, to payment of any amounts owing by the Canadian Loan Parties in respect of Banking Services Obligations and Swap Obligations, ninth, to the payment of any other Canadian Obligations due to any Agent or any Canadian Revolving Lender by the Canadian Borrower, and tenth, to the payment of the European Obligations in the order set forth Section 2.18(d) below. Notwithstanding the foregoing, amounts received from any Canadian Loan Party shall not be applied to any Excluded Swap Obligation of such Canadian Loan Party. In no event will any proceeds of Collateral described in this Section 2.18(c) be applied to any Domestic Obligations or Ex-Im Obligations.
(d) Any proceeds of Collateral of the European Loan Parties received by any Agent (i) not constituting either (A) a specific payment of principal, interest, fees or other sum payable under the Loan Documents (which shall be applied as specified by the Borrower Representative), (B) a mandatory prepayment (which shall be applied in accordance with Section 2.11) or (C) amounts to be applied from the European Collection Account when full cash dominion is in effect (which shall be applied in accordance with Section 2.10) or (ii) after an Event of Default has occurred and is continuing and the Administrative Agent so elects or the Required Lenders so direct, such funds shall be applied ratably first, to pay any fees, indemnities, or expense reimbursements including amounts then due to the Agents and the European Issuing
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Bank from the European Borrowers (other than in connection with Banking Services Obligations or Swap Obligations), second, to pay any fees or expense reimbursements then due to the European Revolving Lenders from the European Borrowers (other than in connection with Banking Services Obligations or Swap Obligations), third, to pay interest due in respect of European Overadvances and European Protective Advances, fourth, to pay the principal of European Overadvances and European Protective Advances, fifth, to pay interest then due and payable on the European Revolving Loans, sixth, to prepay principal on the European Revolving Loans and unreimbursed European LC Disbursements ratably, seventh, to pay an amount to the European Agent equal to 105% of the aggregate undrawn face amount of all outstanding European Letters of Credit and the aggregate amount of any unpaid European LC Disbursements, to be held as cash collateral for such Obligations, eighth, to payment of any amounts owing by the European Loan Parties in respect of Banking Services Obligations and Swap Obligations, ninth, to the payment of any other European Obligations due to any Agent or any European Revolving Lender by any European Borrower, and tenth, to the payment of the Canadian Obligations in the order set forth Section 2.18(c) above. Notwithstanding the foregoing, amounts received from any European Loan Party shall not be applied to any Excluded Swap Obligation of such European Loan Party. In no event will any proceeds of Collateral described in this Section 2.18(d) be applied to any Domestic Obligations or Ex-Im Obligations.
(e) Notwithstanding anything to the contrary contained in this Agreement, unless so directed by the Borrower Representative, or unless an Event of Default is in existence, neither any Agent nor any Lender shall apply any payment which it receives to any CDOR Rate Loan or any Eurodollar Loan of a Class, except (a) on the expiration date of the Interest Period applicable to any such Eurodollar Loan or (b) in the event, and only to the extent, that with respect to CDOR Rate Loans, there are no outstanding CP Loans of the same Class, and with respect to Eurodollar Loans, there are no outstanding CBFR Loans or USBR Loans, as applicable, of the same Class and, in any such event, the applicable Borrower shall pay the break funding payment required in accordance with Section 2.16. The Administrative Agent and the Lenders shall have the continuing and exclusive right to apply and reverse and reapply any and all such proceeds and payments to any portion of the Secured Obligations.
(f) At the election of the Administrative Agent, all payments of principal, interest, LC Disbursements, fees, premiums, reimbursable expenses (including, without limitation, all reimbursement for fees and expenses pursuant to Section 9.03), and other sums payable under the Loan Documents, may be paid from the proceeds of Borrowings made hereunder whether made following a request by the Borrower Representative pursuant to Section 2.03 or a deemed request as provided in this Section or may be deducted from any deposit account of any Borrower maintained with the Administrative Agent; provided, that no Borrowings of Canadian Revolving Loans, Canadian Swingline Loans, Canadian Overadvances, Canadian Protective Advances, European Revolving Loans, European Swingline Loans, European Overadvances or European Protective Advances may be used to pay any of the Domestic Obligations or the Ex-Im Obligations and no amounts contained in a deposit account of the Canadian Borrower or any European Borrower may be applied against any of the Domestic Obligations or the Ex-Im Obligations. The Company hereby irrevocably authorizes (i) the Administrative Agent to make a Borrowing for the purpose of paying each payment of principal, interest and fees as it becomes due hereunder or any other amount due under the Loan Documents and agrees that all such amounts charged shall constitute Loans (including Swingline Loans and Overadvances, but such a Borrowing may only constitute a Protective Advance if it is to reimburse costs, fees and expenses as described in Section 9.03) and that all such Borrowings shall be deemed to have been requested pursuant to Sections 2.03, 2.04 or 2.05, as applicable and (ii) the Administrative Agent to charge any deposit account of any Borrower maintained with the Administrative Agent for each payment of principal, interest and fees for which such Borrower is obligated as it becomes due hereunder or any other amount due under the Loan Documents. Each Ex-Im Borrower hereby authorizes (i) the Ex-Im Revolving Lender to make a Borrowing for the purpose of paying each payment of principal, interest and fees in respect of the Ex-Im Revolving Loans and the Ex-Im Letters of Credit as it becomes due hereunder or any other amounts due under the Loan Documents in respect of the Ex-Im Obligations and agrees that such amounts charged shall constitute Ex-Im Revolving Loans and that all such Borrowings shall be deemed to have been requested
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pursuant to Section 2.03 and (ii) the Ex-Im Revolving Lender to charge any deposit account of any Ex-Im Borrower maintained with the Ex-Im Revolving Lender for each payment of principal, interest and fees for which the Ex-Im Borrowers are obligated as it becomes due hereunder or any other amount due under the Loan Documents in respect of the Ex-Im Obligations. The Canadian Borrower hereby authorizes (i) the Canadian Agent to make a Borrowing for the purpose of paying each payment of principal, interest and fees owing by it as it becomes due hereunder or any other amount due from it under the Loan Documents and agrees that all such amounts charged shall constitute Canadian Revolving Loans (including Canadian Swingline Loans and Canadian Overadvances, but such a Borrowing may only constitute a Canadian Protective Advance if it is to reimburse costs, fees and expenses as described in Section 9.03) and that all such Borrowings shall be deemed to have been requested pursuant to Sections 2.03, 2.04 or 2.05, as applicable and (ii) each Agent to charge any deposit account of the Canadian Borrower maintained with such Agent for each payment of principal, interest and fees owing by the Canadian Borrower as it becomes due hereunder or any other amount due from it under the Loan Documents. Each European Borrower hereby authorizes (i) the European Agent to make a Borrowing for the purpose of paying each payment of principal, interest and fees owing by it as it becomes due hereunder or any other amount due from it under the Loan Documents and agrees that all such amounts charged shall constitute European Revolving Loans (including European Swingline Loans and European Overadvances, but such a Borrowing may only constitute a European Protective Advance if it is to reimburse costs, fees and expenses as described in Section 9.03) and that all such Borrowings shall be deemed to have been requested pursuant to Sections 2.03, 2.04 or 2.05, as applicable and (ii) each Agent to charge any deposit account of such European Borrower maintained with such Agent for each payment of principal, interest and fees owing by such European Borrower as it becomes due hereunder or any other amount due from it under the Loan Documents.
(g) If any Lender shall, by exercising any right of set‑off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or participations in Ex-Im Revolving Loans and LC Disbursements resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in Ex-Im Revolving Loans and LC Disbursements and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and LC Disbursements of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and participations in Ex-Im Revolving Loans and LC Disbursements; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by any 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 and LC Disbursements to any assignee or participant, other than to such Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). Each 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 such Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Borrower in the amount of such participation.
(h) Unless the Administrative Agent shall have received notice from the Borrower Representative prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or an Issuing Bank hereunder that the Borrowers will not make such payment, the Administrative Agent may assume that the Borrowers have made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the applicable Issuing Bank, as the case may be, the amount due. In such event, if the Borrowers have not in fact made such payment, then each of the Lenders or such Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or such Issuing Bank
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with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.
(i) If any Lender shall fail to make any payment required to be made by it hereunder, then the applicable Agent or the Ex-Im Revolving Lender, as applicable, may, in its discretion (notwithstanding any contrary provision hereof), (i) apply any amounts thereafter received by such Person for the account of such Lender to satisfy such Lender's obligations hereunder until all such unsatisfied obligations are fully paid and/or (ii) hold any such amounts in a segregated account as cash collateral for, and apply any such amounts to, any future funding obligations of such Lender hereunder; application of amounts pursuant to (i) and (ii) above shall be made in such order as may be determined by the Administrative Agent in its discretion.
Section 2.19 Mitigation Obligations; Replacement of Lenders.
(a) If any Lender requests compensation under Section 2.15, or if any Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15 or 2.17, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrowers hereby agree to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment).
(b) If any Lender requests compensation under Section 2.15, or if any Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender) pursuant to Section 2.17, or if any Lender becomes a Defaulting Lender, then the Borrowers may, at their 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 and subject to the restrictions contained in Section 9.04), 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 Borrowers shall have received the prior written consent of the Agents and the Ex-Im Revolving Lender (and the applicable Issuing Bank), which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in unreimbursed LC Disbursements and Swingline 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 applicable Borrower (in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.15 or payments required to be made pursuant to Section 2.17, such assignment will result in a reduction in such compensation 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 Borrowers to require such assignment and delegation cease to apply.
Section 2.20 Defaulting Lenders.
Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender.
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(a) fees shall cease to accrue on the unfunded portion of the Domestic Revolving Commitment, the Canadian Revolving Subcommitment and the European Revolving Subcommitment of such Defaulting Lender pursuant to Section 2.12(a);
(b) the Commitments and Credit Exposure of such Defaulting Lender shall not be included in determining whether all Lenders or the Required Lenders have taken or may take any action hereunder (including any consent to any amendment or waiver pursuant to Section 9.02), provided that any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender which affects such Defaulting Lender differently than other affected Lenders shall require the consent of such Defaulting Lender;
(c) if any Swingline Exposure, Ex-Im Revolving Exposure or LC Exposure exists at the time a Lender becomes a Defaulting Lender then:
(i) all or any part of such Swingline Exposure, Ex-Im Revolving Exposure and LC Exposure shall be reallocated among the non-Defaulting Lenders that are Domestic Revolving Lenders, Ex-Im Participants, Canadian Revolving Lenders or European Revolving Lenders, as applicable, in accordance with their respective Applicable Percentages but only to the extent (x) the sum of all non-Defaulting Lenders' Revolving Exposures plus such Defaulting Lender's Swingline Exposure, Ex-Im Revolving Exposure and LC Exposure does not exceed the total of all non-Defaulting Lenders' Revolving Commitments and (y) the conditions set forth in Section 4.02 are satisfied at such time; and
(ii) if the reallocation described in clause (i) above cannot, or can only partially, be effected, the applicable Borrower shall within one Business Day following notice by the Administrative Agent (x) first, prepay such Swingline Exposure and Ex-Im Revolving Exposure and (y) second, cash collateralize such Defaulting Lender's LC Exposure (after giving effect to any partial reallocation pursuant to clause (i) above) in accordance with the procedures set forth in Section 2.06(j) for so long as such LC Exposure is outstanding;
(iii) if any Borrower cash collateralizes any portion of such Defaulting Lender's LC Exposure pursuant to Section 2.20(c), such Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.12(b) with respect to such Defaulting Lender's LC Exposure during the period such Defaulting Lender's LC Exposure is cash collateralized;
(iv) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to Section 2.20(c), then the fees payable to the Lenders pursuant to Section 2.12(b) shall be adjusted in accordance with such non-Defaulting Lenders' Applicable Percentages; or
(v) if any Defaulting Lender's LC Exposure is neither cash collateralized nor reallocated pursuant to Section 2.20(c), then, without prejudice to any rights or remedies of any Issuing Bank or any Lender hereunder, all facility fees that otherwise would have been payable to such Defaulting Lender (solely with respect to the portion of such Defaulting Lender's Commitment that was utilized by such LC Exposure) and letter of credit fees payable under Section 2.12(b) with respect to such Defaulting Lender's LC Exposure shall be payable to such Issuing Bank until such LC Exposure is cash collateralized and/or reallocated;
(d) no Issuing Bank shall be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash collateral will be provided by the applicable Borrower in accordance with Section 2.20
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(c), and participating interests in any such newly issued or increased Letter of Credit or newly made Swingline Loan or Ex-Im Revolving Loan shall be allocated among non-Defaulting Lenders in a manner consistent with Section 2.20(c)(i) (and Defaulting Lenders shall not participate therein); and
(e) in the event and on the date that each of the Agents, the Ex-Im Revolving Lender, the Borrowers, the Issuing Banks and the Swingline Lenders agree that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the Swingline Exposure, Ex-Im Revolving Exposure and LC Exposure of the other Lenders shall be readjusted to reflect the inclusion of such Lender's Revolving Commitments and on such date such Lender shall purchase at par such of the Loans of the other Lenders (other than Swingline Loans) as the Administrative Agent shall determine may be necessary in order for such Lender to hold such Loans in accordance with its Applicable Percentage.
Section 2.21 Returned Payments.
If after receipt of any payment which is applied to the payment of all or any part of the Obligations, any Agent or any Lender is for any reason compelled to surrender such payment or proceeds to any Person because such payment or application of proceeds is invalidated, declared fraudulent, set aside, determined to be void or voidable as a preference, impermissible setoff, or a diversion of trust funds, or for any other reason, then the Obligations or part thereof intended to be satisfied shall be revived and continued and this Agreement shall continue in full force as if such payment or proceeds had not been received by the Administrative Agent or such Lender. The provisions of this Section 2.21 shall be and remain effective notwithstanding any contrary action which may have been taken by any Agent or any Lender in reliance upon such payment or application of proceeds. The provisions of this Section 2.21 shall survive the termination of this Agreement.
Section 2.22 United Kingdom Tax Matters.
(a) The provisions of this Section 2.22 shall only apply in respect of any European Borrower or any other Borrower to whom the provisions of Section 874 ITA would apply (ignoring any exceptions) on the payment of any amount of interest (a "Relevant Borrower") to any Lender.
(b) Tax Gross-up.
(i) Each Relevant Borrower shall make all payments to be made by it under any Loan Document without any Tax Deduction unless a Tax Deduction is required by law.
(ii) A Relevant Borrower shall, promptly upon becoming aware that it must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Administrative Agent accordingly. Similarly, a Lender or Issuing Bank shall notify the Administrative Agent on becoming so aware in respect of a payment payable to that Lender or Issuing Bank. If the Administrative Agent receives such notification from a Lender or Issuing Bank it shall notify the Relevant Borrower.
(iii) If a Tax Deduction is required by law to be made by a Relevant Borrower, the amount of the payment due from that Relevant Borrower shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required.
(iv) A payment shall not be increased under clause (iii) above by reason of a Tax Deduction on account of Taxes imposed by the United Kingdom if, on the date on which the payment falls due:
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(A) the payment could have been made to the relevant Lender without a Tax Deduction if the Lender had been a Qualifying Lender, but on that date that Lender is not or has ceased to be a Qualifying Lender other than as a result of any change after the date it became a Lender under this Agreement in (or in the interpretation, administration, or application of) any law or Treaty or any published practice or published concession of any relevant taxing authority; or
(B) the relevant Lender is a Qualifying Lender solely by virtue of clause (a)(ii) of the definition of Qualifying Lender, and:
(1) an officer of H.M. Revenue & Customs has given (and not revoked) a direction (a “Direction”) under section 931 of the ITA which relates to the payment and that Lender has received from the Relevant Borrower making the payment a certified copy of that Direction; and
(2) the payment could have been made to the Lender without any Tax Deduction if that Direction had not been made; or
(C) the relevant Lender is a Qualifying Lender solely by virtue of clause (a)(ii) of the definition of Qualifying Lender and:
(1) the relevant Lender has not given a Tax Confirmation to the Relevant Borrower; and
(2) the payment could have been made to the Lender without any Tax Deduction if the Lender had given a Tax Confirmation to the Relevant Borrower, on the basis that the Tax Confirmation would have enabled the Relevant Borrower to have formed a reasonable belief that the payment was an “excepted payment” for the purpose of section 930 of the ITA; or
(D) the relevant Lender is a Treaty Lender and the Relevant Borrower making the payment is able to demonstrate that the payment could have been made to the Lender without the Tax Deduction had that Lender complied with its obligations under clause (vii) below.
(v) If a Relevant Borrower is required to make a Tax Deduction, that Relevant Borrower shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed and in the minimum amount required by law.
(vi) Within thirty days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Relevant Borrower making that Tax Deduction shall deliver to the Administrative Agent for the benefit of the Lender entitled to the payment a statement under section 975 of the ITA or other evidence reasonably satisfactory to that Lender that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.
(vii) A Treaty Lender and each Relevant Borrower which makes a payment to which that Treaty Lender is entitled shall co-operate in completing any procedural formalities necessary for that Relevant Borrower to obtain authorization to make that payment without a Tax Deduction.
(viii) Nothing in clause (b)(vii) above shall require a Treaty Lender to:
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(A) register under the HMRC DT Treaty Passport scheme;
(B) apply the HMRC DT Treaty Passport scheme to any advance if it has so registered; or
(C) file Treaty forms if it has included an indication to the effect that it wishes the HMRC DT Treaty Passport Scheme to apply to this Agreement in accordance with clause (b)(ix) or clause (f)(i) (HMRC DT Treaty Passport scheme confirmation) and the Relevant Borrower making that payment has not complied with its obligations under clause (b)(x) or clause (f)(ii) (HMRC DT Treaty Passport scheme confirmation).
(ix) A Treaty Lender which becomes a party on the day on which this Agreement is entered into that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall include an indication to that effect (for the benefit of the Administrative Agent and without liability to any Relevant Borrower) by notifying the Relevant Borrower of its scheme reference number and its jurisdiction of tax residence. The passport scheme reference number of each Lender as of the Effective Date that desires the HMRC DT Treaty Passport scheme to apply to this Agreement is set forth on the Commitment Schedule (as in effect on the Effective Date).
(x) Where a Lender notifies the Relevant Borrower as described in clause (b)(ix) above each Relevant Borrower shall file a duly completed form DTTP2 in respect of such Lender with HM Revenue & Customs within 30 days of the date of this Agreement and shall promptly provide the Lender with a copy of that filing.
(xi) If a Lender has not included an indication to the effect that it wishes the HMRC DT Treaty Passport scheme to apply to this Agreement in accordance with clause (b)(ix) above or clause (f)(i) (HMRC DT Treaty Passport scheme confirmation), no Relevant Borrower shall file any form relating to the HMRC DT Treaty Passport scheme in respect of that Lender’s advance or its participation in any advance.
(c) Tax Indemnity.
(i) The Relevant Borrower shall (within three Business Days of demand by the Administrative Agent) pay to a Lender an amount equal to the loss, liability or cost which that Lender determines will be or has been (directly or indirectly) suffered for or on account of Taxes by that Lender in respect of a Loan Document.
(ii) Clause (c)(i) above shall not apply:
(A) with respect to any Taxes assessed on a Lender
(1) under the law of the jurisdiction in which such Lender is incorporated or, if different, the jurisdiction (or jurisdictions) in which such Lender is treated as resident for tax purposes; or
(2) under the law of the jurisdiction in which such Lender’s lending office is located in respect of amounts received or receivable in such jurisdiction,
if such Taxes are imposed on or calculated by reference to the net income received or receivable (but not any sum deemed to be received or receivable) by such Lender; or
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(B) to the extent a loss, liability or cost:
(1) is compensated for by an increased payment under Section 2.22(b) (Tax gross-up); or
(2) would have been compensated for by an increased payment under Section 2.22(b) (Tax gross-up) but was not so compensated solely because one of the exclusions in Section 2.22(b)(iv) (Tax gross-up) applied.
(iii) A Lender making, or intending to make a claim under Section 2.22(c)(i) above shall promptly notify the Administrative Agent of the event which will give, or has given, rise to the claim, following which the Administrative Agent shall notify the Relevant Borrower.
(iv) A Lender shall, on receiving a payment from the Relevant Borrower under this clause (c), notify the Administrative Agent.
(d) Tax Credit.
If a Relevant Borrower makes a Tax Payment and the relevant Lender determines that:
(i) a Tax Credit is attributable either to an increased payment of which that Tax Payment forms part, to that Tax Payment or to a Tax Deduction in consequence of which that Tax Payment was required; and
(ii) such Lender has obtained and utilized that Tax Credit,
such Lender shall pay an amount to the Relevant Borrower which such Lender determines will leave it (after that payment) in the same after-Taxes position as it would have been in had the Tax Payment not been required to be made by the Relevant Borrower.
(e) Lender Status Confirmation.
Each Lender which becomes a party to this Agreement after the date of this Agreement (“New Lender”) shall indicate, in the Assignment and Assumption which it executes on becoming a party, and for the benefit of the Administrative Agent and without liability to any Relevant Borrower, which of the following categories it falls within:
(i) not a Qualifying Lender;
(ii) a Qualifying Lender (other than a Treaty Lender); or
(iii) a Treaty Lender.
If a New Lender fails to indicate its status in accordance with this Section 2.22(e), then such New Lender shall be treated for the purposes of this Agreement (including by each Relevant Borrower) as if it is not a Qualifying Lender until such time as it notifies the Administrative Agent which category of Qualifying Lender applies (and the Administrative Agent, upon receipt of such notification, shall inform the Relevant Borrower). For the avoidance of doubt, an Assignment and Assumption shall not be invalidated by any failure of a New Lender to comply with this Section 2.22(e).
(f) HMRC DT Treaty Passport Scheme Confirmation.
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(i) A New Lender that is a Treaty Lender that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall include an indication to that effect (for the benefit of the Administrative Agent and without liability to any Relevant Borrower) in the Assignment and Assumption which it executes by including its scheme reference number and its jurisdiction of tax residence in that Assignment and Assumption .
(ii) Where an Assignment and Assumption includes the indication described in clause (f)(i) above each Relevant Borrower which is a party as a Borrower as at the date that the relevant Assignment and Assumption is executed (the “Transfer Date”) shall file a duly completed form DTTP2 in respect of such Lender with HM Revenue & Customs within 30 days of that Transfer Date and shall promptly provide the Lender with a copy of that filing.
(g) Stamp Taxes.
The Relevant Borrower shall pay and, within three Business Days of demand, indemnify each Lender against any cost, loss or liability that Lender incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Loan Document.
(h) Value Added Tax.
(i) All amounts set out or expressed in a Loan Document to be payable by any party to any Lender which (in whole or in part) constitute the consideration for a supply for VAT purposes shall be deemed to be exclusive of any VAT which is chargeable on such supply, and accordingly, subject to clause (ii) below, if VAT is or becomes chargeable on any supply made by any Lender to any party under a Loan Document and such Lender is required to account to the relevant tax authority for the VAT, that party shall pay to the Lender (in addition to and at the same time as paying any other consideration for such supply) an amount equal to the amount of such VAT (and such Lender shall promptly provide an appropriate VAT invoice to such party).
(ii) If VAT is or becomes chargeable on any supply made by any Lender (the “Supplier”) to any other Lender (the “Recipient”) under a Loan Document, and any party other than the Recipient (the “Subject Party”) is required by the terms of any Loan Document to pay an amount equal to the consideration for such supply to the Supplier (rather than being required to reimburse or indemnify the Recipient in respect of that consideration), the Subject Party shall also pay to the Supplier (in addition to and at the same time as paying such amount) an amount equal to the amount of such VAT. The Recipient will promptly pay to the Subject Party an amount equal to any credit or repayment obtained by the Recipient from the relevant tax authority which the Recipient reasonably determines is in respect of the VAT chargeable on that supply.
(iii) Where a Loan Document requires any party to reimburse or indemnify a Lender for any cost or expense, that party shall reimburse or indemnify (as the case may be) such Lender for the full amount of such cost or expense, including such part thereof as represents VAT, save to the extent that such Lender reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant tax authority.
(iv) Any reference in this Section 2.22(h) to any party shall, at any time when such party is treated as a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to the representative
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member of such group at such time (the term “representative member” to have the same meaning as in the United Kingdom Value Added Tax Act 1994).
(v) Except as otherwise expressly provided in Section 2.22(h), a reference to “determines” or “determined” in connection with tax provisions contained in Section 1.2(h) means a determination made in the absolute discretion of the person making the determination.
Section 2.23 Exchange Rate Fluctuations.
The Administrative Agent shall at all times monitor the Dollar Equivalent of all outstanding Canadian Revolving Exposure and European Revolving Exposure. If due to changes in the exchange rate between Dollars and Canadian Dollars, the Canadian Revolving Exposure exceeds the Canadian Revolving Commitment, then the Administrative Agent may in its sole discretion, refuse to permit any further Canadian Revolving Loans to be borrowed, continued or converted or Canadian Letters of Credit to be issued, or may require that the Canadian Borrower, pay or prepay such excess amounts in respect of any outstanding Canadian Obligations as the Administrative Agent may request in writing to the Canadian Borrower (such payment to be made within 2 Business Days of the Administrative Agent's request therefor). If due to changes in the exchange rate between Dollars and Sterling and/or Euro, as applicable, the European Revolving Exposure exceeds the European Revolving Commitment, then the Administrative Agent may in its sole discretion, refuse to permit any further European Revolving Loans to be borrowed, continued or converted or European Letters of Credit to be issued, or may require that the European Borrowers, pay or prepay such excess amounts in respect of any outstanding European Obligations as the Administrative Agent may request in writing to the European Borrowers (such payment to be made within 2 Business Days of the Administrative Agent's request therefor).
Section 2.24 Inter-Lender Assignments.
Each Existing Lender hereby sells and assigns to each Lender, without recourse, representation or warranty (except as set forth below), and each such Lender hereby purchases and assumes from each Existing Lender a percentage interest in the Commitments and subcommitments and the Loans and other Obligations hereunder as may be required to reflect the allocation of Commitments and subcommitments as set forth on the Commitment Schedule. The Lenders agree to make such inter-Lender wire transfers as may be required to give effect to the foregoing assignments and assumptions and, as a result of such assignments and assumptions, each Existing Lender shall be absolutely released from any obligations, covenants or agreements with respect to the Commitments, subcommitments and Loans so assigned. With respect to such Commitments, subcommitments and Loans so assigned, each Existing Lender makes no representation or warranty whatsoever, except that it represents and warrants that it is the legal and beneficial owner of the same, free and clear of any adverse claim.
ARTICLE III
Representations and Warranties
Representations and Warranties
Each Loan Party represents and warrants to the Lenders that:
Section 3.01 Organization; Powers.
Each of the Loan Parties is duly organized or incorporated, validly existing and in good standing (where applicable) under the laws of the jurisdiction of its organization or incorporation, has all requisite power and authority to carry on its business as now conducted and, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect,
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is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required.
Section 3.02 Authorization; Enforceability.
The Transactions are within each Loan Party's organizational powers and have been duly authorized by all necessary organizational actions and, if required, actions by equity holders. The Loan Documents to which each Loan Party is a party have been duly executed and delivered by such Loan Party and constitute a legal, valid and binding obligation of such Loan Party, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.
Section 3.03 Governmental Approvals; No Conflicts.
The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect and except for filings necessary to perfect Liens created pursuant to the Loan Documents, (b) will not violate any Requirement of Law applicable to any Loan Party, (c) will not violate or result in a default under any indenture (including without limitation the 2011 Indenture), agreement or other instrument evidencing Material Indebtedness binding upon any Loan Party or its assets, or give rise to a right thereunder to require any payment to be made by any Loan Party, and (d) will not result in the creation or imposition of any Lien on any asset of any Loan Party, except Liens created pursuant to the Loan Documents.
Section 3.04 Financial Condition; No Material Adverse Change.
(f) The Company has heretofore furnished to the Lenders its consolidated balance sheet and statements of income, stockholders equity and cash flows (i) as of and for the fiscal year ended December 31, 2013, reported on by Ernst & Young, independent public accountants, and (ii) as of and for the three month period ended March 31, 2014, certified by its chief financial officer. Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the Company and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year‑end audit adjustments and the absence of footnotes in the case of the statements referred to in clause (ii) above.
(g) No event, change or condition has occurred that has had, or could reasonably be expected to have, a Material Adverse Effect since December 31, 2013.
Section 3.05 Properties.
(k) Schedule 3.05 sets forth, as of the Effective Date, the address of each parcel of Real Property that is owned by each Loan Party, all material leases and subleases of Real Property by each Loan Party as lessee or sublessee and all material leases and subleases of Real Property by each Loan Party as lessor or sublessor. For purposes of the foregoing sentence, "material" shall mean a lease or sublease related to a location where Inventory with a value in excess of $1,000,000 is located. Each of such leases and subleases is valid and enforceable in accordance with its terms and is in full force and effect, and no default by any party to any such lease or sublease exists that could reasonably be expected to result in a Material Adverse Effect. Each of the Loan Parties has good and indefeasible title to, or valid leasehold interests in, all its real and personal property, free of all Liens other than those permitted by Section 6.02.
(l) Each Loan Party owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other Intellectual Property necessary to its business as currently conducted, and the use thereof by the Loan Parties does not, to the knowledge of the Loan Parties, infringe in any material respect upon the
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rights of any other Person, and the Loan Parties' rights thereto are not subject to any material licensing agreement or similar arrangement.
Section 3.06 Litigation and Environmental Matters.
(c) Except for the Disclosed Matters, there are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of any Loan Party, threatened against or affecting the Loan Parties (i) as to which there is a reasonable possibility of an adverse determination and that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect (other than the Disclosed Matters) or (ii) that involve this Agreement or the Transactions.
(d) Except for the Disclosed Matters (i) no Loan Party has received notice of any claim with respect to any Environmental Liability or knows of any basis for any Environmental Liability, in either case, in an amount greater than $10,000,000 or that could reasonably be expected to result in a Material Adverse Effect and (ii) and except with respect to any other matters that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, no Loan Party (1) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law or (2) has become subject to any Environmental Liability.
(e) Since the date of this Agreement, there has been no change in the status of the Disclosed Matters that, individually or in the aggregate, has resulted in, or materially increased the likelihood of, a Material Adverse Effect.
Section 3.07 Compliance with Laws and Agreements.
Each Loan Party is in compliance with all Requirements of Law applicable to it or its property and all indentures, agreements and other instruments binding upon it or its property (including without limitation the 2011 Indenture), except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. No Default has occurred and is continuing.
Section 3.08 Investment Company Status.
No Loan Party is an "investment company" as defined in, or subject to regulation under, the Investment Company Act of 1940 and none of the European Loan Parties carries on any business in the United Kingdom which requires it to be authorized by the U.K. Financial Conduct Authority or the U.K. Prudential Regulation Authority.
Section 3.09 Taxes.
Each Loan Party has timely filed or caused to be filed all federal income tax and other material Tax returns and reports required to have been filed and has paid or caused to be paid all amounts shown on such Tax returns and reports to be due and payable, except Taxes that are being contested in good faith by appropriate proceedings and for which such Loan Party, as applicable, has set aside on its books adequate reserves and as to which no Lien exists. No tax Liens have been filed and no claims are being asserted with respect to any such taxes.
Section 3.10 Pension Plans.
(h) No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect. The present value of all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of Statement of Financial Accounting Standards
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No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than $5,000,000 the fair market value of the assets of such Plan, and the present value of all accumulated benefit obligations of all underfunded Plans (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than $5,000,000 the fair market value of the assets of all such underfunded Plans. The aggregate Withdrawal Liability the Loan Parties and their ERISA Affiliates would increase if all such Persons were to incur a "complete withdrawal" (within the meaning of ERISA Section 4203) from Multiemployer Plans on the date of each Credit Extension hereunder does not exceed $4,000,000. No Loan Party or any ERISA Affiliate has incurred, or is reasonably expected to incur, any excise tax or penalty relating to a Plan, any material liability to the PBGC or any withdrawal liability to Multiemployer Plans. Each Plan complies and has been administered in all material respects with all applicable requirements of law and regulations. No Loan Party or ERISA Affiliate has withdrawn from any Plan or initiated steps to do so, and no steps have been taken to reorganize or terminate any Plan.
(i) No Loan Party incorporated in any legal jurisdiction of the United Kingdom has (i) at any time been an employer (for the purposes of section 38 to 51 of the Pensions Act 2004 (U.K.) ) of an occupational pension scheme which is not a money purchase scheme (both terms as defined in the Pensions Schemes Act 1993), (ii) at any time been “connected” with or an “associate” of (as those terms are used in sections 38 and 43 of the Pensions Xxx 0000 (U.K.) such an employer, (iii) been issued with a Financial Support Direction or Contribution Notice in respect of any pension scheme, or (iv) requested or been granted a contribution holiday in respect of any occupational pension scheme.
(j) Each pension or occupational benefit scheme operated or provided by a Loan Party incorporated in Ireland for the benefit of its employees is operated or provided on a defined contribution basis.
(k) Each Loan Party and its Subsidiaries is in compliance with the requirements of the Pension Benefits Act (Ontario) and other federal or provincial laws with respect to each Canadian Plan, except where the failure to so comply would not reasonably be expected to have a Material Adverse Effect. No fact or situation that may reasonably be expected to result in a Material Adverse Effect exists in connection with any Canadian Plan. No Canadian Pension Event has occurred or is reasonably expected to occur. As of the date hereof, except as set forth on Schedule 3.10, each Canadian Pension Plan has no solvency deficiency and is funded as required under the most recent actuarial valuation filed with the applicable Governmental Authority pursuant to generally accepted actuarial practices and principles. All contributions (including employee contributions made by authorized payroll deductions or other withholdings) required to be made to the appropriate funding agency in accordance with all applicable laws and the terms of each Canadian Plan have been made in accordance with all applicable laws and the terms of each Canadian Plan.
Section 3.11 Disclosure.
Each Borrower has disclosed to the Lenders all agreements, instruments and corporate or other restrictions to which it or any Loan Party is subject, and all other matters known to it, that, as of the date hereof, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. None of the other reports, financial statements, certificates or other information furnished by or on behalf of the any Loan Party in writing to any Agent or any Lender in connection with the negotiation of this Agreement or any other Loan Document (taken as a whole and as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, no representation is given with respect to forward looking statements or information of a general industry or economic nature; and provided further, that, with respect to projected financial information, the Borrowers represent only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time such projections were delivered.
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Section 3.12 Material Agreements.
All material agreements and contracts to which any Loan Party is a party or is bound as of the date of this Agreement are listed on Schedule 3.12 (defined as those required to be listed in the Company's filings with the Securities and Exchange Commission). No Loan Party is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in (i) any such material agreement to which it is a party, except to the extent that any such default would not reasonably be expected to have a Material Adverse Effect or (ii) any agreement or instrument evidencing or governing Material Indebtedness.
Section 3.13 Solvency.
(d) Immediately after the consummation of the Transactions to occur on the Effective Date, and immediately after the making of each Credit Extension, and after giving effect to the application of the proceeds of such Credit Extension, (i) the fair value of the assets of the Loan Parties, taken as a whole, at a fair valuation, will exceed their debts and liabilities, subordinated, contingent or otherwise; (ii) the present fair saleable value of the property of the Loan Parties, taken as a whole, will be greater than the amount that will be required to pay the probable liability of their debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured; (iii) the Loan Parties, taken as a whole, will be able to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (iv) the Loan Parties, taken as a whole, will not have unreasonably small capital with which to conduct the business in which they are engaged as such business is now conducted and is proposed to be conducted after the Effective Date.
(e) No Loan Party intends to and no Loan Party believes that it will, incur debts beyond its ability to pay such debts as they mature, taking into account the timing of and amounts of cash to be received by it and the timing of the amounts of cash to be payable on or in respect of its Indebtedness.
Section 3.14 Insurance.
Schedule 3.14 sets forth a description of all insurance maintained by or on behalf of the Loan Parties as of the Effective Date. As of the Effective Date, all premiums in respect of such insurance have been paid. The Borrowers believe that the insurance maintained by or on behalf of the Loan Parties is adequate.
Section 3.15 Capitalization and Subsidiaries.
Schedule 3.15 sets forth as of the Effective Date (a) a correct and complete list of the name and relationship to the Company of each and all of the Company's Subsidiaries, (b) a true and complete listing of each class of each Borrower's authorized Equity Interests, of which all of such issued shares are validly issued, outstanding, fully paid and non-assessable, and as of the Effective Date owned beneficially and of record by the Persons identified on Schedule 3.15, and (c) the type of entity of the Company and each of its Subsidiaries, together with the employer or tax payer identification number of each Person and the organizational identification number issued by the jurisdiction of organization of each such Person (or a statement that no such number has been issued). All of the issued and outstanding Equity Interests owned by any Loan Party has been (to the extent such concepts are relevant with respect to such ownership interests) duly authorized and issued and is fully paid and non‑assessable.
Section 3.16 Security Interest in Collateral.
(h) The provisions (i) of this Agreement and the other Loan Documents create legal and valid Liens on all the Collateral of the Domestic Loan Parties in favor of the Administrative Agent, for the benefit of the Administrative Agent and the Lenders, and such Liens constitute perfected and continuing
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Liens on such Collateral, securing the Secured Obligations, enforceable against the applicable Domestic Loan Parties and all third parties, and having priority over all other Liens on such Collateral, except for Liens on Export-Related Collateral, which are junior only to the Liens of the Ex-Im Revolving Lender in such Export-Related Collateral described in clause (i) hereof, (ii) of this Agreement and certain of the other Loan Documents create legal and valid Liens on all the Collateral of the Domestic Loan Parties in favor of the Ex-Im Revolving Loans and such Liens constitute perfected and continuing Liens on such Collateral, securing the Ex-Im Obligations, enforceable against the applicable Domestic Loan Parties and all third parties, and having priority over all other Liens on such Collateral, except for Liens on all Collateral other than Export-Related Collateral, which are junior only to the Liens of the Administrative Agent on such Collateral described in clause (i) hereof, (iii) of this Agreement and the Canadian Collateral Documents create legal and valid Liens on all the Collateral of the Canadian Loan Parties in favor of the Canadian Agent, for the benefit of the Canadian Agent and the Canadian Revolving Lenders, and such Liens constitute perfected and continuing Liens on such Collateral, securing the Canadian Obligations, enforceable against the applicable Canadian Loan Parties and all third parties, and having priority over all other Liens on such Collateral, in each case, except in the case of (A) Permitted Encumbrances, to the extent any such Permitted Encumbrances would have priority over the Liens in favor of the applicable Agent or the Ex-Im Revolving Lender, as applicable, pursuant to any applicable law and (B) Liens perfected only by possession (including possession of any certificate of title) to the extent the applicable Agent or the Ex-Im Revolving Lender, as applicable, has not obtained or does not maintain possession of such Collateral, and (iv) of this Agreement and, during the European Availability Period, the European Collateral Documents create (subject to all applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law) legal and valid Liens on all the Collateral of the European Loan Parties in favor of the European Agent, for the benefit of the European Agent and the European Revolving Lenders, and upon registration of particulars of each European Collateral Document granted by a European Loan Party incorporated in England and Wales and Scotland at Companies House in England and Wales or Scotland as the case may require in accordance with Part 25 (Company Charges) of the Companies Xxx 0000 (U.K.) and payment of associated fees or any regulations relating to the registration of charges made under, or applying the provisions of, the Companies Xxx 0000 (U.K.) and payment of associated fees, and upon registration of particulars of each European Collateral Document granted by a European Loan Party incorporated in Ireland at the Companies Registration Office in Ireland in accordance with Section 99 of the Companies Xxx 0000 of Ireland and payment of associated fees or any regulations relating to the registration of charges made under, or applying the provisions of, the Companies Act, 1963 of Ireland and payment of associated fees, in each case which such registrations and fees will be made and paid promptly after the date of the relevant European Collateral Document and in any event prior to the time required to be made and paid if the relevant European Collateral Document is to remain valid, such Liens constitute perfected and continuing Liens on such Collateral, securing the European Obligations, enforceable against the applicable European Loan Parties and all third parties (subject to all applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law), and having priority over all other Liens on such Collateral, in each case, except in the case of (A) Permitted Encumbrances, to the extent any such Permitted Encumbrances would have priority over the Liens in favor of the applicable Agent or the Ex-Im Revolving Lender, as applicable, pursuant to any applicable law and (B) Liens perfected only by possession (including possession of any certificate of title) to the extent the applicable Agent or the Ex-Im Revolving Lender, as applicable, has not obtained or does not maintain possession of such Collateral.
(i) Each European Borrower's unsecured and subordinated obligations under the Loan Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.
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(j) Each European Collateral Document has or will have the ranking in priority which it is expressed to have in the relevant European Collateral Document and it is not subject to any prior ranking or pari passu ranking Collateral.
Section 3.17 Employment Matters.
As of the Effective Date, there are no strikes, lockouts or slowdowns against any Loan Party pending or, to the knowledge of the Borrowers, threatened, which could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect. The hours worked by and payments made to employees of the Loan Parties have not been in violation of the Fair Labor Standards Act or any other applicable Federal, state, local, provincial or foreign law dealing with such matters. All payments due from any Loan Party, or for which any claim may be made against any Loan Party, on account of wages and employee health and welfare insurance and other benefits, have been paid or accrued as a liability on the books of the Loan Party.
Section 3.18 Affiliate Transactions.
Except for immaterial matters, transactions permitted by Section 6.09, and as set forth on Schedule 3.18, as of the Effective Date, there are no existing or proposed agreements, arrangements, understandings, or transactions between any Loan Party and any of the officers, members, managers, directors, stockholders, parents, other interest holders, employees, or Affiliates (other than Subsidiaries) of any Loan Party or any members of their respective immediate families, and none of the foregoing Persons are directly or indirectly indebted to or have any direct or indirect ownership, partnership, or voting interest in any Affiliate of any Loan Party or any Person with which any Loan Party has a business relationship or which competes with any Loan Party.
Section 3.19 Names; Prior Transactions.
Except as set forth on Schedule 3.19, as of the Effective Date, the Loan Parties have not, during the past five years, been known by or used any other corporate or fictitious name, or been a party to any amalgamation, merger or consolidation, or been a party to any acquisition of another Person.
Section 3.20 Regulation U.
No Loan Party is engaged, nor will it engage, principally or as one of its important activities, in the business of extending credit for the purpose of "purchasing" or "carrying" any "margin stock" as such terms are defined in Regulation U of the Federal Reserve Board as now and from time to time hereafter in effect (such securities being referred to herein as "Margin Stock"). No Loan Party owns any Margin Stock, and none of the proceeds of the Loans or other extensions of credit under this Agreement will be used, directly or indirectly, for the purpose of purchasing or carrying any Margin Stock, for the purpose of reducing or retiring any Indebtedness that was originally incurred to purchase or carry any Margin Stock or for any other purpose that might cause any of the Loans or other extensions of credit under this Agreement to be considered a "purpose credit" within the meaning of Regulations T, U or X of the Board. No Loan Party will take or permit to be taken any action that might cause any Loan Document to violate any regulation of the Board.
Section 3.21 Indebtedness.
The Loan Parties have no Indebtedness, except for (a) the Obligations and (b) any Indebtedness permitted under Section 6.01.
Section 3.22 Subordinated Indebtedness.
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The Secured Obligations constitute senior indebtedness which is entitled to the benefits of the subordination provisions of all outstanding Subordinated Indebtedness.
Section 3.23 Anti-Corruption Laws and Sanctions.
The Company has implemented and maintains in effect policies and procedures designed to ensure compliance by the Company, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Company, its Subsidiaries and their respective officers and employees and, to the knowledge of the Company, its directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects. None of (a) any Loan Party, any Subsidiary or, to the knowledge of any such Loan Party or Subsidiary, any of their respective directors, officers or employees, or (b) to the knowledge of any such Loan Party or Subsidiary, any agent of such Loan Party or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person. No Borrowing or Letter of Credit, use of proceeds, Transaction or other transaction contemplated by this Agreement or the other Loan Documents will violate Anti-Corruption Laws or applicable Sanctions.
Section 3.24 0000 Xxxxxxxxx.
(a) No Event of Default (as defined in the 2011 Indenture) or Default (as defined in the 2011 Indenture) exists, nor will any such Event of Default or Default exist immediately after any Credit Extension, under the 2011 Indenture, the 2011 Senior Notes or any agreement executed by the Company or any other Domestic Loan Party in connection therewith; (b) the making of any Loan shall not constitute Indebtedness (as defined in the 2011 Indenture) incurred in violation of Section 4.09 (Incurrence of Indebtedness and Issuance of Preferred Stock) of the 2011 Indenture; and (c) the Secured Obligations, including the Canadian Revolving Exposure and European Revolving Exposure, constitute Indebtedness permitted under Section 4.09(b) of the 2011 Indenture.
Section 3.25 Common Enterprise.
The successful operation and condition of each of the Loan Parties and Holdings is dependent on the continued successful performance of the functions of the group of the Loan Parties and Holdings as a whole and the successful operation of each of the Loan Parties and Holdings is dependent on the successful performance and operation of each other Loan Party and Holdings. Each Loan Party and Holdings expects to derive benefit (and its board of directors or other governing body has determined that it may reasonably be expected to derive benefit), directly and indirectly, from (i) successful operations of each of the other Loan Parties and Holdings and (ii) the credit extended by the Lenders to the Borrowers hereunder, both in their separate capacities and as members of the group of companies. Each Loan Party and Holdings has determined that execution, delivery, and performance of this Agreement and any other Loan Documents to be executed by such Loan Party and Holdings is within its purpose, will be of direct and indirect benefit to such Loan Party and Holdings, and is in its best interest.
Section 3.26 Fast Track Loan Agreement.
Each representation of the Ex-Im Borrowers contained in the Fast Track Loan Agreement is true and correct in all material respects.
Section 3.27 Centre of Main Interests.
For the purposes of the Council Regulation 1346/2000/EC, on insolvency proceedings (European Union), the centre of main interests (as that term is used in Article 3(1) therein) of each European Loan Party is situated in its jurisdiction of incorporation and it has no “establishment” (as that term is used in Article 2(h) therein) in any other jurisdiction.
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Section 3.28 Irish matters.
(a) Each Loan Party incorporated in Ireland (an “Irish Loan Party”) and each other Loan Party whose obligations are guaranteed or otherwise secured by the Loan Guaranty provided by an Irish Loan Party or a Loan Document entered into by an Irish Loan Party form part of a group of companies for the purposes of section 35 of the Companies Xxx 0000 of Ireland, as amended.
(b) No amount borrowed or guaranteed under a Loan Document by an Irish Loan Party has or shall be used for the purpose of or in connection with the purpose of or in connection with a purchase or subscription made or to be made by any person of or for any shares in that Irish Loan Party or any holding company (direct or indirect) of that Irish Loan Party.
ARTICLE IV
Conditions
Conditions
Section 4.01 Effective Date.
The obligations of the Lenders to make Loans and of each Issuing Bank to issue Letters of Credit hereunder, and this Agreement itself, shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02):
(d) Credit Agreement and Loan Documents. The Administrative Agent (or its counsel) shall have received (i) from each party hereto either (A) a counterpart of this Agreement signed on behalf of such party or (B) written evidence satisfactory to the Administrative Agent (which may include facsimile transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement and (ii) duly executed copies of the Loan Documents and such other certificates, documents, instruments and agreements as the Administrative Agent shall reasonably request in connection with the transactions contemplated by this Agreement and the other Loan Documents, including any promissory notes requested by a Lender pursuant to Section 2.10 payable to the order of each such requesting Lender and a written opinion of the Loan Parties' counsel, addressed to the Agents, the Ex-Im Revolving Lender, the Issuing Banks and the Lenders.
(e) Closing Certificates; Certified Certificate of Incorporation; Good Standing Certificates. The Administrative Agent shall have received (i) a certificate of each Loan Party, dated the Effective Date and executed by its Secretary or Assistant Secretary, which shall (A) certify the resolutions of its board of directors, members or other body authorizing the execution, delivery and performance of the Loan Documents to which it is a party, (B) identify by name and title and bear the signatures of the Financial Officers and any other officers of such Loan Party authorized to sign the Loan Documents to which it is a party, and (C) contain appropriate attachments, including the certificate or articles of incorporation or organization of each Loan Party certified by the relevant authority of the jurisdiction of organization of such Loan Party and a true and correct copy of its by‑laws or operating, management or partnership agreement, or a certification from the Secretary or Assistant Secretary of such Loan Party that there have been no amendments to such governing documents since the last date of delivery to the Administrative Agent, and (ii) a long form good standing certificate or certificate of status, as applicable, for each Loan Party from its jurisdiction of organization.
(f) No Default Certificate. The Administrative Agent shall have received a certificate, signed by the chief financial officer of each of the Borrower Representative and the Canadian Borrower, on the initial Borrowing date (i) stating that no Default has occurred and is continuing, (ii) stating that the representations and warranties contained in Article III are true and correct as of such date, (iii) certifying that the execution, delivery and performance of this Agreement and the other Loan Documents and the
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consummation of the Transactions are, in each case, permitted under the 2011 Indenture, and (iv) certifying any other factual matters as may be reasonably requested by the Administrative Agent.
(g) Fees. The Lenders and the Agents shall have received all fees required to be paid, and all expenses for which invoices have been presented (including the reasonable fees and expenses of legal counsel), on or before the Effective Date. All such amounts will be paid with proceeds of Loans made on the Effective Date and will be reflected in the funding instructions given by the Borrower Representative to the Administrative Agent on or before the Effective Date.
(h) Lien Searches. The Administrative Agent shall have received the results of a recent lien search of the Borrowers, certain of the other material Loan Parties in each of the jurisdictions where assets of such Loan Parties are located, and such search shall reveal no liens on any of the assets of such Loan Parties except for Liens permitted by Section 6.02 or discharged on or prior to the Effective Date pursuant to a pay-off letter or other documentation satisfactory to the Administrative Agent.
(i) Approvals. The Administrative Agent shall have received evidence that all approvals of Governmental Authorities and third parties necessary in connection with this Agreement have been obtained and shall be in full force and effect.
(j) Updated Schedules. The Loan Parties shall have provided updated Schedules to this Agreement, with results acceptable to the Agents and the Lenders.
(k) Solvency. The Administrative Agent shall have received a solvency certificate from a Financial Officer.
(l) Filings, Registrations and Recordings. Each document (including any Uniform Commercial Code and PPSA financing statement and any recordings in respect of security interests in any Intellectual Property) required by the Collateral Documents, under law or reasonably requested by the Administrative Agent to be filed, registered or recorded in order to create in favor of an Agent, for the benefit of the applicable Lenders, a perfected Lien on the Collateral (including, without limitation, Equipment and Intellectual Property) described therein, prior and superior in right to any other Person (other than with respect to Liens expressly permitted by Section 6.02), shall be in proper form for filing, registration or recordation.
(m) Insurance. The Administrative Agent shall have received evidence of insurance coverage in form, scope, and substance reasonably satisfactory to the Administrative Agent and otherwise in compliance with the terms of Section 5.09 hereof, Section 4.12 of the Domestic Security Agreement and the equivalent provision in the Foreign Collateral Documents.
(n) Other Documents. The Administrative Agent shall have received such other documents as any Agent, any Issuing Bank, any Lender or their respective counsel may have reasonably requested.
The Administrative Agent shall notify the Borrowers and the Lenders of the Effective Date, and such notice shall be conclusive and binding.
Section 4.02 Each Credit Extension.
The obligation of each Lender to make a Loan on the occasion of any Borrowing, and of each Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions:
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(c) The representations and warranties of the Borrowers set forth in this Agreement shall be true and correct in all material respects on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable.
(d) At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default shall have occurred and be continuing.
(e) After giving effect to any Borrowing or the issuance of any Letter of Credit, neither the Aggregate Availability nor the Domestic Availability is less than zero.
(f) Such Borrowing or Letter of Credit constitutes Indebtedness that may be incurred under Section 4.09(a) or (b) of the 2011 Indenture.
Each Credit Extension shall be deemed to constitute a representation and warranty by the Borrowers on the date thereof as to the matters specified in paragraphs (a), (b), (c) and (d) of this Section.
Section 4.03 Each Canadian Credit Extension.
The obligation of each Canadian Revolving Lender to make a Canadian Revolving Loan on the occasion of any Borrowing, and of the Canadian Issuing Bank to issue, amend, renew or extend any Canadian Letter of Credit, is subject to the satisfaction of the following conditions in addition to those set forth in Section 4.02:
(h) After giving effect to any Borrowing or the issuance of any Letter of Credit, the Canadian Availability is not less than zero.
(i) Such Borrowing or Letter of Credit constitutes Indebtedness that may be incurred under Section 4.09(a) or (b) of the 2011 Indenture.
Each Credit Extension shall be deemed to constitute a representation and warranty by the Canadian Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section.
Section 4.04 Initial European Credit Extension.
The obligation of each European Revolving Lender to make the initial European Revolving Loans, and of the European Issuing Bank to issue the initial European Letters of Credit, is subject to the satisfaction of the following conditions in addition to those set forth in Section 4.02 and in Section 4.05:
(m) The Administrative Agent and Lenders shall have received fifteen (15) Business Days' prior written notice from the Company designating which European Subsidiaries shall constitute the European Borrowers.
(n) The Administrative Agent shall have received duly executed copies of (i) a European Borrower Joinder Agreement executed by each European Borrower, (ii) all applicable European Collateral Documents, and all related agreements, instruments and documents, each of the foregoing fully executed and in form and substance satisfactory to the Administrative Agent and (iii) a written opinion of the Loan Parties' or the Administrative Agent's counsel, as applicable, addressed to the Administrative Agent, the European Agent and the European Revolving Lenders in form and substance satisfactory to the Administrative Agent.
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(o) The Administrative Agent shall have received a European Borrowing Base Certificate which calculates the European Borrowing Base as of the end of the calendar month immediately preceding the European Effective Date.
(p) The Administrative Agent shall have received a certificate of each European Loan Party, dated as of the European Effective Date and executed by a director, which shall (i) certify the resolutions of its board of directors, members or other body authorizing the execution, delivery and performance of the applicable Loan Documents to which it is a party, (ii) identify by name and title and bear the signatures of the directors of such Loan Party authorized to sign such Loan Documents, (iii) contain appropriate attachments, including the certificate of incorporation, memorandum (where applicable) and articles of association of each European Loan Party certified by a director of such Loan Party, and (iv) contain such other customary certificates and confirmations as the counsel issuing the written opinion referred to in paragraph (b) above may reasonably require for the purposes of issuing that opinion.
(q) The Administrative Agent shall have received a certificate, signed by a director of each European Borrower, on the European Effective Date (i) stating that no Default has occurred and is continuing, (ii) stating that the representations and warranties contained in Article III are true and correct as of such date, and (iii) certifying any other factual matters as may be reasonably requested by the Administrative Agent.
(r) The Administrative Agent, the European Agent and each European Revolving Lender shall have received all fees required to be paid, and all reasonable out-of-pocket expenses for which invoices have been presented (including the reasonable fees and expenses of legal counsel), on or before the European Effective Date. All such amounts will be paid with proceeds of Loans made on the European Effective Date.
(s) Each document required by the European Collateral Documents, or under law or reasonably requested by the Administrative Agent or the European Agent to be filed, registered or recorded in order to create in favor of the European Agent, a perfected Lien on the Collateral described therein, prior and superior in right to any other Person (other than with respect to Liens expressly permitted by Section 6.02), shall be in proper form for filing, registration or recordation. The Administrative Agent shall have received (i) the certificates representing Equity Interests pledged pursuant to any European Collateral Document (or, to the extent required under any other Collateral Document, a 65% pledge of the Equity Interests of each Foreign Subsidiary in accordance with Section 5.13(c)), together with an undated stock transfer form for each such certificate executed in blank by a duly authorized officer of the pledgor thereof, to the extent applicable, and (ii) each promissory note (if any) required to be delivered to the Administrative Agent pursuant to any European Collateral Documents endorsed (without recourse) in blank (or accompanied by an executed transfer form in blank) by the pledgor thereof.
(t) The Administrative Agent shall have received each document, notice, acknowledgment or other agreement necessary to give the applicable Agent sole control of the European Collection Accounts.
(u) The Administrative Agent or its designee shall have conducted a field examination of the European Loan Parties' Accounts, Inventory and related working capital matters and of the European Loan Parties' related data processing and other systems, the results of which shall be satisfactory to the Administrative Agent in its sole discretion. The Administrative Agent shall have received an appraisal of the applicable European Loan Parties' Inventory from one or more firms satisfactory to the Administrative Agent, which appraisals shall be satisfactory to the Administrative Agent in its sole discretion.
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(v) The Administrative Agent shall have received evidence of insurance coverage and endorsement to policies in form, scope, and substance reasonably satisfactory to the Administrative Agent and otherwise in compliance with the terms of the Loan Documents with respect to the European Borrowers.
(w) The Administrative Agent shall have received the results of a recent lien and other public record searches of the European Loan Parties in each of the jurisdictions where assets of such Loan Parties are located, and such search shall reveal no liens on any of the assets of such Loan Parties except for Liens permitted by Section 6.02 or discharged on or prior to the European Effective Date pursuant to a pay-off letter or other documentation satisfactory to the Administrative Agent.
(x) The Administrative Agent shall have received evidence that all approvals of Governmental Authorities and third parties necessary in connection with the European Revolving Subcommitment under this Agreement have been obtained and shall be in full force and effect.
(y) The Administrative Agent and the Lenders shall have received all documentation and other information required by bank regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations for each European Loan Party.
(z) The Administrative Agent and its counsel shall have completed all legal due diligence with respect to the European Borrowers, including a review of material contracts and investigation of contingent liabilities and contractual obligations.
(aa) The Administrative Agent shall have received such other documents as the Administrative Agent or its counsel may have reasonably requested.
Following delivery of the European Borrower Joinder Agreement described in clause (a) above, and upon delivery and satisfaction of the other conditions set forth above, each European Borrower shall for all purposes be a party hereto as a Borrower as fully as if it had executed and delivered this Agreement. The Agent shall notify the Borrower Representative and the Lenders of the European Effective Date, and such notice shall be conclusive and binding.
Section 4.05 Each European Credit Extension.
The obligation of each European Revolving Lender to make a European Revolving Loan on the occasion of any Borrowing, and of the European Issuing Bank to issue, amend, renew or extend any European Letter of Credit, is subject to the satisfaction of the following conditions in addition to those set forth in Section 4.02:
(f) After giving effect to any Borrowing or the issuance of any Letter of Credit, the European Availability is not less than zero.
(g) Such Borrowing or Letter of Credit constitutes Indebtedness that may be incurred under Section 4.09(a) or (b) of the 2011 Indenture.
Each Credit Extension shall be deemed to constitute a representation and warranty by each European Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section.
Section 4.06 Initial Ex-Im Credit Extension.
The obligation of the Ex-Im Revolving Lender to make the initial Ex-Im Revolving Loan, and of the Ex-Im Issuing Bank to issue the initial Ex-Im Letter of Credit, is subject to the satisfaction of the following conditions in addition to those set forth in Section 4.02 and in Section 4.07:
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(g) The Administrative Agent and the Ex-Im Revolving Lender shall have received satisfactory evidence that the Ex-Im Borrowers have obtained all necessary consents and approvals from Ex-Im Bank and are in compliance with the terms and conditions of the Ex-Im Bank Guarantee program, as well as any special approvals by Ex-Im Bank, if applicable.
(h) The Administrative Agent and the Ex-Im Revolving Lender shall have received duly executed copies of (i) all Ex-Im Bank Documents (including all applicable waiver letters executed by Ex-Im Bank) and necessary application forms required by Ex-Im Bank, (ii) the Fast Track Loan Agreement, the Ex-Im Note, the Ex-Im Security Agreement and all other applicable Collateral Documents relating to the Export-Related Collateral, and all related agreements, instruments and documents, each of the foregoing fully executed and in form and substance satisfactory to the Administrative Agent and the Ex-Im Revolving Lender and (iii) a written opinion of the Loan Parties' counsel, addressed to the Ex-Im Revolving Lender and the Ex-Im Issuing Bank.
(i) The Administrative Agent and the Ex-Im Revolving Lender shall have received an Ex-Im Borrowing Base Certificate which calculates the Export-Related Borrowing Base as of the end of the calendar month immediately preceding the Ex-Im Effective Date.
(j) The Administrative Agent shall have received (i) a certificate of each Loan Party, dated the Ex-Im Effective Date and executed by its Secretary or Assistant Secretary, which shall (A) certify the resolutions of its board of directors, members or other body authorizing the execution, delivery and performance of the applicable Loan Documents to which it is a party, (B) identify by name and title and bear the signatures of the Financial Officers and any other officers of such Loan Party authorized to sign such Loan Documents, and (C) contain appropriate attachments, including the certificate or articles of incorporation or organization of each Loan Party certified by the relevant authority of the jurisdiction of organization of such Loan Party and a true and correct copy of its by‑laws or operating, management or partnership agreement, and (ii) a long form good standing certificate or certificate of status, as applicable, for each Loan Party from its jurisdiction of organization.
(k) The Administrative Agent shall have received a certificate, signed by the chief financial officer of each Ex-Im Borrower, on the initial Ex-Im Effective Date (i) stating that no Default has occurred and is continuing, (ii) stating that the representations and warranties contained in Article III are true and correct as of such date, and (iii) certifying any other factual matters as may be reasonably requested by the Administrative Agent.
(l) The Ex-Im Revolving Lender shall have received all fees required to be paid, and all expenses for which invoices have been presented (including the reasonable fees and expenses of legal counsel), on or before the Ex-Im Effective Date. All such amounts will be paid with proceeds of Loans made on the Ex-Im Effective Date.
(m) Each document (including any Uniform Commercial Code financing statement required by the Collateral Documents, or under law or reasonably requested by the Administrative Agent to be filed, registered or recorded in order to create in favor of the Ex-Im Revolving Lender, a perfected Lien on the Collateral described therein, prior and superior in right to any other Person (other than with respect to Liens expressly permitted by Section 6.02), shall be in proper form for filing, registration or recordation.
(n) If required by the Administrative Agent in its discretion, completion of an updated field examination of the Export-Related Accounts and Export-Related Inventory of the Ex-Im Credit Party, with results satisfactory to the Administrative Agent.
(o) The Administrative Agent shall have received such other documents as the Ex‑Im Revolving Lender or its counsel may have reasonably requested.
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The Agent shall notify the Borrower and the Lenders of the Ex-Im Effective Date, and such notice shall be conclusive and binding.
Section 4.07 Each Ex-Im Credit Extension.
The obligation of the Ex-Im Revolving Lender to make an Ex-Im Revolving Loan on the occasion of any Borrowing, and of the Ex-Im Issuing Bank to make, amend, renew or extend any Ex-Im Letter of Credit, is subject to satisfaction of the following conditions in addition to those set forth in Section 4.02 and 4.06:
(i) After giving effect to any Borrowing or the issuance of any Letter of Credit, the Ex-Im Availability is not less than zero.
(j) Such Borrowing or Letter of Credit constitutes Indebtedness that may be incurred under Section 4.09(a) or (b) of the 2011 Indenture.
(k) Each Ex-Im Bank Document and the Fast Track Loan Agreement shall each be in full force and effect.
(l) All conditions to such Credit Extension contained in the Fast Track Loan Agreement and the Ex-Im Bank Documents shall have been satisfied, and the Ex-Im Revolving Lender shall be permitted under the Ex-Im Bank Guarantee to make Credit Extensions hereunder.
Each Credit Extension shall be deemed to constitute a representation and warranty by the Ex-Im Borrowers on the date thereof as to the matters specified in paragraphs (a), (b), (c) and (d) of this Section.
ARTICLE V
Affirmative Covenants
Affirmative Covenants
Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit shall have expired or terminated and all LC Disbursements shall have been reimbursed, each Loan Party executing this Agreement covenants and agrees, jointly and severally with all of the Loan Parties, with the Lenders that:
Section 5.01 Financial Statements; Borrowing Base and Other Information.
The Borrowers will furnish, through the Administrative Agent, to each Lender:
(g) within 120 days after the end of each fiscal year of the Company, (i) its audited consolidated balance sheet and related statements of operations, stockholders' equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by independent public accountants or chartered accounting firm, as applicable, acceptable to the Administrative Agent (without a "going concern" or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Company and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, accompanied by any management letter prepared by said accountants; and (ii) its unaudited consolidating balance sheet and related statements of operations, stockholders' equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all certified by one of the Financial Officers of the Borrower Representative as presenting fairly in all material respects the financial condition and results of operations of the Company and each of its Subsidiaries in
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accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;
(h) within 50 days after the end of each of the first three fiscal quarters of the Company, its consolidated and consolidating balance sheet and related statements of operations, stockholders' equity and cash flows as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of the Financial Officers of the Borrower Representative as presenting fairly in all material respects the financial condition and results of operations of the Company and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;
(i) within 30 days after the end of each fiscal month of the Company, its consolidated and consolidating balance sheet and related statements of operations, stockholders' equity and cash flows as of the end of and for such fiscal month and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of the Company and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;
(j) concurrently with any delivery of financial statements under clause (a) or (b) above, a certificate of a Financial Officer of the Borrower Representative in substantially the form of Exhibit E (i) certifying, in the case of the financial statements delivered under clause (b), as presenting fairly in all material respects the financial condition and results of operations of the Company and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes, (ii) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (iii) setting forth reasonably detailed calculations demonstrating compliance with Section 6.13 and (iv) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements referred to in Section 3.04 and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate;
(k) concurrently with any delivery of financial statements under clause (a) above, a certificate of the accounting firm that reported on such financial statements stating whether they obtained knowledge during the course of their examination of such financial statements of any Default (which certificate may be limited to the extent required by accounting rules or guidelines);
(l) as soon as available, but in any event not more than 30 days after the end of each fiscal year of the Company, a draft copy, on a business unit basis, of the plan and forecast of the Company and its Subsidiaries for the next fiscal year on an annual basis and, not more than 90 days after the end of such fiscal year, a final copy of the plan and forecast (including a projected consolidated and consolidating balance sheet, income statement and funds flow statement) of the Company for each fiscal quarter of the upcoming fiscal year (the "Projections") in form reasonably satisfactory to the Administrative Agent;
(m) as soon as available but in any event within 3 Business Days after the end of each calendar week, an Aggregate Borrowing Base Certificate, together with a Domestic Borrowing Base Certificate, a Canadian Borrowing Base Certificate, and (y) at all times after the European Effective Date, a European Borrowing Base Certificate and (z) at all times after the Ex-Im Effective Date, an Ex-Im Borrowing Base Certificate and supporting information in connection therewith (including copies of all applicable Export Orders), together with any additional reports with respect to the Aggregate Borrowing
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Base, the Domestic Borrowing Base, the Canadian Borrowing Base, the European Borrowing Base or the Export-Related Borrowing Base as the Administrative Agent may reasonably request (unless the Administrative Agent otherwise requests, the weekly Borrowing Base Certificates shall include updates of gross Accounts and gross Export-Related Accounts, but only the Borrowing Base Certificates delivered with respect to the last week in each calendar month shall include updates of (1) gross Inventory, (2) gross Export-Related Inventory, (3) Inventory and Export-Related Inventory ineligibles and (4) Accounts and Export-Related Accounts ineligibles; provided, that the Borrowers will only be required to deliver (i) Ex-Im Borrowing Base Certificates on a monthly basis (within 20 days after the end of each calendar month) during any period after the Ex-Im Effective Date that average monthly Aggregate Availability for any calendar month exceeds the Maximum Availability Amount, as well as at such other times as the Administrative Agent reasonably requests, but not more often than once per calendar week, (ii) European Borrowing Base Certificates on a monthly basis (within 20 days after the end of each calendar month) during any period after the European Effective Date that average monthly Aggregate Availability for any calendar month exceeds the Maximum Availability Amount, as well as at such other times as the Administrative Agent reasonably requests, but not more often than once per calendar week, and (iii) Domestic Borrowing Base Certificates, Canadian Borrowing Base Certificates and Aggregate Borrowing Base Certificates on a monthly basis (within 20 days after the end of each calendar month) during any period that average monthly Aggregate Availability for any calendar month exceeds the Maximum Availability Amount, as well as at such other times as the Administrative Agent reasonably requests, but not more often than once per calendar week;
(n) as soon as available but in any event within 20 days after the end of each calendar month, borrowing base certificates for each Loan Party with respect to its individual borrowing base and Export-Related Borrowing Base (if applicable) for the immediately preceding month;
(o) together with the Borrowing Base Certificates described in clause (g) above, and at such other times as may be requested by the Administrative Agent, as of the period then ended, all delivered electronically in a text formatted file acceptable to the Administrative Agent:
(i) a detailed aging of each Loan Party's Accounts and Export-Related Accounts (1) including all invoices aged by invoice date and due date (with an explanation of the terms offered) and (2) reconciled to the Aggregate Borrowing Base Certificate and the other Borrowing Base Certificates delivered as of such date prepared in a manner reasonably acceptable to the Administrative Agent, together with a summary specifying the name, address, and balance due for each Account Debtor;
(ii) a schedule detailing each Loan Party's Inventory and Export-Related Inventory, in form satisfactory to the Administrative Agent, (1) by location (showing Inventory in transit, any Inventory located with a third party under any consignment, bailee arrangement, or warehouse agreement), by class (raw material, work-in-process and finished goods), by product type, and by volume on hand, which Inventory shall be valued at the lower of cost (determined on a first-in, first-out basis) or market and adjusted for Reserves as the Administrative Agent has previously indicated to the Borrower Representative are deemed by the Administrative Agent to be appropriate, (2) including a report of any variances or other results of Inventory and Export-Related Inventory counts performed by the Borrowers since the last Inventory schedule (including information regarding sales or other reductions, additions, returns, credits issued by Borrowers and complaints and claims made against the Borrowers), and (3) reconciled to the Aggregate Borrowing Base Certificate and the individual Borrowing Base Certificates delivered as of such date, provided that such schedule may be delivered in similar form and continuing said information as the Borrowers have been providing under the Existing Credit Agreement, or if so determined by the Administrative Agent, such alternative form and containing such alternative information as may be otherwise acceptable to the Administrative Agent;
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(iii) a worksheet of calculations prepared by the Borrowers to determine Eligible Accounts, Eligible Inventory, Eligible Export-Related Inventory and Eligible Export-Related Accounts, such worksheets detailing the Accounts, Inventory, Export-Related Accounts and Export-Related Inventory excluded from Eligible Accounts, Eligible Inventory, Eligible Export-Related Inventory and Eligible Export-Related Accounts, as applicable, and the reason for such exclusion;
(iv) a reconciliation of the Loan Parties' Accounts, Inventory, Export-Related Accounts and Export-Related Inventory between the amounts shown in the Borrowers' general ledger and financial statements and the reports delivered pursuant to clauses (i) and (ii) above; and
(v) a reconciliation of the loan balance per the Borrowers' general ledger to the loan balance under this Agreement;
(p) together with the Borrowing Base Certificates described in clause (g) above, and at such other times as may be requested by the Administrative Agent, as of the month then ended, a schedule and aging of the Loan Parties' accounts payable, delivered electronically in a text formatted file acceptable to the Administrative Agent;
(q) promptly upon the Administrative Agent's request:
(i) copies of invoices in connection with the invoices issued by the Loan Parties in connection with any Accounts, Export-Related Accounts, credit memos, shipping and delivery documents, and other information related thereto;
(ii) copies of purchase orders, invoices, and shipping and delivery documents in connection with any Inventory, Export-Related Inventory or Equipment purchased by any Loan Party; and
(iii) a schedule detailing the balance of all intercompany accounts of the Loan Parties;
(r) together with the Borrowing Base Certificates described in clause (g) above, and at such other times as may be requested by the Administrative Agent, as of the period then ended, the Loan Parties' sales journal, cash receipts journal (identifying trade and non-trade cash receipts) and debit memo/credit memo journal;
(s) promptly upon the Administrative Agent's request, but not more often than one time in each 12 month period, a true and complete customer list for each Loan Party, which list shall state the customer's name, mailing address and phone number and shall be certified as true and correct by a Financial Officer of the Borrower Representative; provided, that so long as Aggregate Availability is less than the Base Availability Amount, such customer lists shall be delivered at any time that the Administrative Agent shall request, but not more often than three times in each 12 month period;
(t) together with each set of financial statements required to be delivered under Section 5.01(a), a certificate of good standing for each Domestic Loan Party and a Certificate of Status for each Canadian Loan Party, in each case from the appropriate governmental officer in its jurisdiction of incorporation, formation, or organization;
(u) promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed by Holdings or any Loan Party with the Securities and Exchange Commission, or any Governmental Authority succeeding to any or all of the functions of said
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Commission, or with any national securities exchange, or distributed by Holdings or any Loan Party to its shareholders generally, as the case may be;
(v) as soon as possible and in any event within 270 days after the close of each fiscal year of the Company, a statement of the unfunded liabilities of each Plan, certified as correct by an actuary enrolled under ERISA; and
(w) promptly following any request therefor, such other information regarding the operations, business affairs and financial condition of any Borrower or any Subsidiary, or compliance with the terms of this Agreement, as any Agent or any Lender may reasonably request.
Information required to be delivered pursuant to this Section 5.01 (to the extent not otherwise previously delivered) shall be deemed to have been delivered to the Administrative Agent on the date on which such information (i) has been posted on the Company's website on the Internet at xxxx://xxx.xxxx.xxx or (ii) is made available via XXXXX, or any successor system of the Securities and Exchange Commission, on the Company's Annual Report on Form 10-K, Quarterly Report on Form 10-Q, or 8-K, as applicable.
Section 5.02 Notices of Material Events.
The Borrowers will furnish to the Administrative Agent prompt written notice of the following:
(j) the occurrence of any Default;
(k) receipt of any notice of any governmental investigation or any litigation or proceeding commenced or threatened against any Loan Party that (i) seeks damages in excess of $5,000,000, (ii) is asserted or instituted against any Canadian Defined Benefit Plan, its fiduciaries or its assets, that could reasonably be expected to have a Material Adverse Effect, (iii) that could reasonably be expected to have a Material Adverse Effect, (iv) is asserted or instituted against any Plan, its fiduciaries or its assets involving claims or damages in excess of $5,000,000, (v) alleges criminal misconduct by any Loan Party, (vi) alleges the violation of any law regarding, or seeks remedies in connection with, any Environmental Laws involving claims or damages in excess of $10,000,000, (vii) contests any tax, fee, assessment, or other governmental charge in excess of $2,000,000, or (viii) involves any product recall, to the extent that such product recall could reasonably be expected to have a Material Adverse Effect;
(l) any Lien (other than Permitted Encumbrances) or claim made or asserted against any material portion of the Collateral;
(m) any loss, damage, or destruction to the Collateral in the amount of $1,000,000 or more, whether or not covered by insurance;
(n) all material default notices received under or with respect to any leased location or public warehouse where Collateral with a value in excess of $1,000,000 is located (which shall be delivered within two Business Days after receipt thereof);
(o) all material amendments to specify real estate leases where Collateral with a value in excess of $1,000,000 is located, together with a copy of each such amendment;
(p) the fact that a Loan Party has entered into a Swap Agreement or an amendment to a Swap Agreement other than, in each case, any Swap Agreement with any Agent, together with copies of all agreements evidencing such Swap Agreement or amendments thereto (which shall be delivered within two Business Days);
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(q) the occurrence of any ERISA Event;
(r) any written notice given by the holder of any Indebtedness of any Loan Party in excess of $5,000,000 that any default exists with respect thereto;
(s) receipt of any written notice that any Loan Party is subject to any investigation by any governmental entity with respect to any potential or alleged violation of any applicable Environmental Law that could reasonably be expected to have a Material Adverse Effect or of imposition of any Lien against any Property of any Loan Party for any material liability with respect to damages arising from, or costs resulting from, any violation of any Environmental Laws;
(t) unless otherwise permitted hereunder and under the other Loan Documents, any change in (i) such Loan Party's name or type of entity, (ii) such Loan Party's articles or certificate of incorporation, memorandum and articles of association, partnership agreement, certificate of partnership, articles or certificate of organization, by-laws, or operating or other management agreement, (iii) the location of its principal place of business or its jurisdiction of organization, formation or incorporation, (iv) the location where any Export-Related Collateral is held or maintained, (v) the location where any Collateral (other than Export-Related Collateral) with an aggregate value in excess of $500,000 is held or maintained, or (vi) the location of any of the books or records related to the Collateral; provided that in no event shall the Administrative Agent receive notice of such change less than ten days prior thereto with respect to clause (ii) or thirty days prior thereto with respect to the rest of this subparagraph;
(u) the opening of any new deposit account by any Loan Party with any bank or other financial institution other than any Agent;
(v) any notice provided to the trustee or any holder of a 2011 Senior Note under the 2011 Indenture or the 2011 Senior Notes, such notice to be contemporaneously delivered by the Company to the Administrative Agent and the Lenders;
(w) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect; and
(x) any other matter as any Agent may reasonably request.
Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer or other executive officer of the Borrower Representative setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.
Section 5.03 Existence; Conduct of Business.
Each Loan Party will (a) do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, qualifications, licenses, permits, franchises, governmental authorizations, Intellectual Property rights, licenses and permits material to the conduct of its business, and maintain all requisite authority to conduct its business in each jurisdiction in which its business is conducted, except to the extent that any such failure would not reasonably be expected to result in a Material Adverse Effect; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under Section 6.03 and (b) carry on and conduct its business in substantially the same manner and in substantially the same fields of enterprise (and logical extensions thereof), taken as a whole, as it is presently conducted.
Section 5.04 Payment of Obligations.
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Each Loan Party will pay or discharge all Material Indebtedness and all other material liabilities and obligations, including Taxes, before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings diligently pursued, (b) such Loan Party has set aside on its books adequate reserves with respect thereto in accordance with GAAP, (c) such liabilities would not result in an Event of Default and no material portion of the Collateral becomes subject to forfeiture or loss as a result of the contest, and (d) no Lien shall be imposed to secure payment of such Liabilities that is superior to the Agent's Liens.
Section 5.05 Maintenance of Properties.
Each Loan Party will keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted.
Section 5.06 Books and Records; Inspection Rights.
Each Loan Party will (a) keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities, in each case, in all material respects, and (b) permit any representatives designated by the Administrative Agent (including employees of the Administrative Agent, any Lender or any consultants, accountants, lawyers and appraisers retained by the Administrative Agent), upon two Business Days prior notice, to visit and inspect its properties, to conduct field examinations and to examine and make extracts from its books and records, including environmental assessment reports and Phase I or Phase II studies, to discuss its affairs, finances and condition with its officers and independent accountants (provided that a representative of the Borrower Representative is given the opportunity to be present), and to review, evaluate and make test verifications and counts of the Accounts, Inventory, Export-Related Accounts, Export-Related Inventory and other Collateral of such Loan Party. After the Ex-Im Effective Date, the Administrative Agent will conduct four (4) such field examinations of the Ex-Im Credit Party in each fiscal year; provided, that (i) if Aggregate Availability is equal to or greater than the Base Availability Amount for 60 consecutive days, only two (2) such field examinations shall be required during the applicable fiscal year, unless Aggregate Availability is subsequently less than the Base Availability Amount for 60 consecutive days, in which case the number of field examinations will revert to four (4) per fiscal year and (ii) notwithstanding the foregoing, at any time that an Event of Default has occurred and is continuing, the Administrative Agent shall be entitled to conduct as many field examinations of the Ex-Im Credit Party as the Administrative Agent elects. The Administrative Agent will conduct one (1) such field examination of the Loan Parties in each fiscal year; provided, that (A) if, during the period comprised of the twelve (12) fiscal months immediately prior to the scheduled commencement of the first field examination in any fiscal year, Aggregate Availability is less than the Base Availability Amount for three (3) consecutive Business Days or any five (5) Business Days in any of such fiscal months, the Administrative Agent may conduct a second field examination during such fiscal year and (B) notwithstanding the foregoing, at any time that an Event of Default has occurred and is continuing, the Administrative Agent shall be entitled to conduct as many field examinations of such Loan Parties as the Administrative Agent elects. If an Event of Default has occurred and is continuing, each Loan Party shall provide such access to the Administrative Agent and each Lender at all times and without advance notice. Furthermore, so long as any Event of Default has occurred and is continuing, each Loan Party shall provide Administrative Agent and each Lender with access to its suppliers, all at such reasonable times and as often as reasonably requested. The Loan Parties acknowledge that the Administrative Agent, after exercising its rights of inspection, may prepare and distribute to the Lenders certain Reports pertaining to the Loan Parties' assets for internal use by the Administrative Agent and the Lenders.
Section 5.07 Compliance with Laws.
Each Loan Party will comply with all Requirements of Law applicable to it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result
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in a Material Adverse Effect. The Company will maintain in effect and enforce policies and procedures designed to ensure compliance by the Company, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.
Section 5.08 Use of Proceeds.
The proceeds of Ex-Im Revolving Loans and the Ex-Im Letters of Credit shall be used only for purposes permitted under the Fast Track Loan Agreement and the Ex-Im Bank Borrower Agreement. The proceeds of the other Credit Extensions will be used only for general corporate purposes. The Loan Parties will not use any of the proceeds of the Credit Extensions in any manner not permitted under the 2011 Indenture or any manner that would otherwise cause a default under or a breach of the 2011 Indenture. No part of the proceeds of any Loan and no Letter of Credit will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X. No Borrower will request any Borrowing or Letter of Credit, and no Borrower shall use, and each Borrower shall procure that its Subsidiaries and its and their respective directors, officers, employees and agents shall not use, the proceeds of any Borrowing or Letter of Credit (a) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (b) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, (c) in any manner that would result in the violation of any Sanctions applicable to any party hereto, or (d) in any manner that would result in a breach of the provisions of section 60 of the Companies Act, 1963 of Ireland, as amended. Notwithstanding the foregoing, the provisions of Section 3.07, Section 3.23, Section 5.07 and this Section 5.08 shall not be interpreted to contravene, or require any notification to the Attorney General of Canada under, the Foreign Extraterritorial Measures (United States) Order, 1992, by any Canadian Borrower, any Canadian Loan Party, any Canadian Loan Guarantor or any Canadian Subsidiary.
Section 5.09 Insurance.
(e) Each Loan Party will maintain with financially sound and reputable carriers having a financial strength rating of at least A- by A.M. Best Company (i) insurance in such amounts (with no greater risk retention) and against such risks (including loss or damage by fire and loss in transit; theft, burglary, pilferage, larceny, embezzlement, and other criminal activities; business interruption; and general liability) and such other hazards, as is customarily maintained by companies of established repute engaged in the same or similar businesses operating in the same or similar locations and (ii) all insurance required pursuant to the Collateral Documents. The Borrowers will furnish to the Lenders, upon request of the Administrative Agent, information in reasonable detail as to the insurance so maintained.
(f) All such insurance shall be in amounts, cover such assets and be under policies customary with the Loan Parties' business and acceptable to the Administrative Agent in its Permitted Discretion. In the event any Collateral is located in any area that has been designated by the Federal Emergency Management Agency as a "Special Flood Hazard Area," the applicable Loan Party shall purchase and maintain flood insurance on such Collateral (including any personal Property which is located on any Real Property leased by such Loan Party within a "Special Flood Hazard Area"). The amount of all insurance required by this Section 5.09 shall at a minimum comply with applicable law, including the Flood Disaster Protection Act of 1973, as amended. All premiums on such insurance shall be paid when due by the applicable Loan Party. If any Loan Party fails to obtain any insurance as required by this Section, the Administrative Agent may obtain such insurance at the Company's expense. By doing so, the Lenders shall not be deemed to have waived any Default arising from any Loan Party's failure to maintain such insurance or pay any premiums therefor. No Loan Party will use or permit any property to be used in material violation of applicable law or in any manner which might render inapplicable any insurance coverage.
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(g) All insurance policies required under this Section 5.09 (a) shall name the applicable Agent as an additional insured or as loss payee, as applicable, and shall provide that, or contain loss payable clauses, in form and substance satisfactory to the Administrative Agent, which provide that:
(vi) all proceeds thereunder with respect to any Collateral shall be payable to the applicable Agent;
(vii) no such insurance shall be affected by any act or neglect of the insured or owner of the property described in such policy; and
(viii) such policy and loss payable clauses may be canceled, amended, or terminated only upon at least thirty days prior written notice given to the applicable Agent.
Section 5.10 Casualty and Condemnation.
The Borrowers (a) will furnish to the Agents and the Lenders prompt written notice of any casualty or other insured damage to any material portion of the Collateral or the commencement of any action or proceeding for the taking of any material portion of the Collateral or interest therein under power of eminent domain or by condemnation or similar proceeding and (b) will ensure that the Net Proceeds of any such event (whether in the form of insurance proceeds, condemnation awards or otherwise) are collected and applied in accordance with the applicable provisions of this Agreement and the Collateral Documents
Section 5.11 Appraisals.
At any time that the Administrative Agent requests, the Loan Parties (or, in the case of Equipment, the Domestic Loan Parties only) will provide the Administrative Agent with appraisals or updates thereof of their Inventory, Export-Related Inventory and Equipment from an appraiser selected and engaged by the Administrative Agent, and prepared on a basis satisfactory to the Administrative Agent, such appraisals and updates to include, without limitation, information required by applicable law and regulations; provided, however, that if no Default has occurred and is continuing, (a) one such appraisal of Inventory and Export-Related Inventory shall be completed in each calendar year at the sole expense of the Loan Parties and (b) up to one such appraisal of Equipment shall be completed in each calendar year at the sole expense of the Loan Parties (it being agreed that the Administrative Agent may, and at the direction of Required Lenders will, require at least one such set of appraisals in each 3 year period); provided that (i) at such time, if ever, that the aggregate value of Equipment of the Domestic Loan Parties that has been sold or otherwise transferred since the Effective Date exceeds $5,000,000, the Required Lenders may direct the Administrative Agent to obtain (and the Administrative Agent shall obtain) an updated appraisal of the remaining Equipment of the Domestic Loan Parties as soon as otherwise permitted under this Section 5.11 and (ii) except as provided in clause (i), or if a Default has occurred and is continuing, no new appraisal or updated appraisal shall be required prior to the second anniversary of the Effective Date.
Section 5.12 Depository Banks.
Each Loan Party will maintain the Administrative Agent in the United States of America, the Canadian Agent in Canada and the European Agent in the United Kingdom and Ireland as their principal depository banks, including for the maintenance of operating, administrative, cash management, collection activity, and other deposit accounts for the conduct of their businesses.
Section 5.13 Additional Collateral; Further Assurances.
(a) Subject to applicable law, each Loan Party shall, except as otherwise permitted hereunder (i) cause each Subsidiary of the Company (other than a Foreign Subsidiary and other than an Excluded Subsidiary or a Designated Subsidiary) to become or remain a Loan Party and a Guarantor of all
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of the Obligations and (ii) cause each of its Subsidiaries (other than a Foreign Subsidiary) formed or acquired after the date of this Agreement in accordance with the terms of this Agreement to become a Loan Party by executing the Joinder Agreement set forth as Exhibit B hereto (the "Joinder Agreement"). Upon execution and delivery thereof, each such Person (i) shall automatically become a Domestic Loan Guarantor hereunder and thereupon shall have all of the rights, benefits, duties, and obligations in such capacity under the Loan Documents, and (ii) will grant Liens to the Ex-Im Revolving Lender in any property of such Loan Party which constitutes Collateral (other than Equipment and Real Property).
(b) Each Canadian Loan Party now or hereafter formed or acquired shall guaranty the Foreign Obligations pursuant to a Joinder Agreement or a separate Loan Guaranty and grant Liens to the Canadian Agent, for the benefit of the Canadian Agent and the Canadian Revolving Lenders, in any property of such Canadian Loan Party which constitutes Collateral, excluding Real Property. During the European Availability Period, each European Loan Party now or hereafter formed or acquired shall guaranty the Foreign Obligations pursuant to a Joinder Agreement or a separate Loan Guaranty and grant Liens to the European Agent, for the benefit of the European Agent and the European Revolving Lenders, in any property of such European Loan Party which constitutes Collateral, excluding Real Property.
(c) Holdings will cause 100% of the issued and outstanding Equity Interests of the Company to be subject at all times to a first priority, perfected Lien in favor of the Administrative Agent and a second priority, perfected Lien in favor of the Ex-Im Revolving Lender, each pursuant to the terms and conditions of the Loan Documents or other security documents as the Administrative Agent shall reasonably request. Each Borrower and each Subsidiary that is a Loan Party will cause (i) 100% of the issued and outstanding Equity Interests of each of its Domestic Subsidiaries (and all other Subsidiaries in the case of Equity Interests owned by (A) the Canadian Borrower and each of its Subsidiaries (B) any European Borrower and each of their respective Subsidiaries) and (ii) 65% (or such greater percentage that, due to a change in an applicable law after the Effective Date, (1) could not reasonably be expected to cause the undistributed earnings of such Foreign Subsidiary as determined for United States federal income tax purposes to be treated as a deemed dividend to such Foreign Subsidiary's United States parent and (2) could not reasonably be expected to cause any material adverse tax consequences) of the issued and outstanding Equity Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) and 100% of the issued and outstanding Equity Interests not entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) in each Foreign Subsidiary directly owned by the Company or any of its Domestic Subsidiaries to be subject at all times to a first priority, perfected Lien in favor of the Administrative Agent and a second priority, perfected Lien in favor of the Ex-Im Revolving Lender, in each case pursuant to the terms and conditions of the Loan Documents or other security documents as the Administrative Agent shall reasonably request.
(d) Without limiting the foregoing, each Loan Party will, and will cause each Subsidiary to, execute and deliver, or cause to be executed and delivered, to the Administrative Agent such documents, agreements and instruments, and will take or cause to be taken such further actions (including the filing and recording of financing statements, fixture filings and other documents and such other actions or deliveries of the type required by Section 4.01, as applicable), which may be required by law or which the Administrative Agent may, from time to time, reasonably request to carry out the terms and conditions of this Agreement and the other Loan Documents and to ensure perfection and priority of the Liens created or intended to be created by the Collateral Documents, all at the expense of the Loan Parties.
(e) If any material assets (excluding any Real Property or interests therein, which are addressed in Section 5.16) are acquired by any Loan Party after the Effective Date (other than assets constituting Collateral under the Security Agreements that become subject to the Lien under the Security Agreements upon acquisition thereof), the Borrower Representative will notify the Administrative Agent and the Lenders thereof, and, if requested by the Administrative Agent or the Required Lenders, the Borrowers will cause such assets to be subjected to a Lien securing the Secured Obligations, the Canadian Obligations, the European Obligations and/or the Ex-Im Obligations, as applicable, and will take, and cause the other
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Loan Parties to take, such actions as shall be necessary or reasonably requested by the Administrative Agent to grant and perfect such Liens, including actions described in paragraph (d) of this Section, all at the expense of the Loan Parties.
Section 5.14 Transfer of Accounts of European Loan Parties.
(k) At any time that full cash dominion is in effect under Section 12.02, at the request of the Administrative Agent in its sole discretion, the European Loan Parties shall (i) either (x) promptly cause all of their European Collection Accounts (each an "Existing European Collection Account") to be transferred to the name of the European Agent or (ii) to the extent such Existing European Collection Accounts cannot be transferred to the European Agent, promptly open new European Collection Accounts with (and, at the discretion of the European Agent, in the name of) the European Agent (such new bank accounts being European Collection Accounts under and for the purposes of this Agreement), and (b) if new European Collection Accounts have been established pursuant to this Section (each a "New European Collection Account"), ensure that Remittances owing to them will promptly be re-directed to the New European Collection Accounts. Until all collections have been redirected to the New European Collection Accounts, each European Loan Party shall cause all amounts on deposit in any Existing European Collection Account to be transferred to a New European Collection Account at the end of each Business Day, provided that if any such European Loan Party does not instruct such re-direction or transfer, each of them hereby authorizes the European Agent to give such instructions on their behalf to the applicable Account Debtors and/or the account bank holding such Existing European Collection Account (as applicable).
(l) At any time that full cash dominion is in effect under Section 12.02, at the request of the Administrative Agent in its sole discretion, each European Loan Party agrees that if any of its Account Debtors have not previously received notice of the security interest of the European Agent over its Accounts, it shall promptly give notice to such Account Debtors and if any such European Loan Party does not serve such notice, each of them hereby authorizes the European Agent to serve such notice on their behalf.
Section 5.15 Communications with Accountants.
Each Loan Party authorizes (a) each Agent, and (b) so long as a Default has occurred and is continuing, each Lender, to communicate, upon advance notice to the Company, directly with its independent certified public accountants and authorizes and shall instruct those accountants and advisors to communicate to each Agent and each Lender information relating to any Loan Party with respect to the business, results of operations and financial condition of any Loan Party, provided that the Borrower Representative is provided advance notice of any such communication and the opportunity to be present.
Section 5.16 Collateral Access Agreements and Real Property Purchases.
Each Loan Party shall use commercially reasonable efforts to obtain a Collateral Access Agreement from the lessor of each leased Real Property, mortgagee of owned Real Property or bailee or consignee with respect to any warehouse, processor or converter facility or other location where Collateral is stored or located, which agreement or letter shall contain a waiver or subordination of all Liens or claims that the landlord, mortgagee or bailee or consignee may assert against the Collateral at that location, and shall otherwise be reasonably satisfactory in form and substance to the Administrative Agent. After the Effective Date, no Real Property or warehouse space shall be leased by any Loan Party and no Inventory or Export-Related Inventory shall be shipped to a processor or converter under arrangements established after the Effective Date without the prior written consent of the Administrative Agent (which consent, in the Administrative Agent's discretion, may be conditioned upon the establishment of a reserve equal to 3 months' rent at that location) or, unless and until a satisfactory Collateral Access Agreement shall first have been obtained with respect to such location. Each Loan Party shall timely and fully pay and perform in all material respects its obligations under all leases and other agreements with respect to each leased location or third
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party warehouse where any Collateral is or may be located. In addition, after the Effective Date, no Loan Party shall grant to any Person a Lien on any of its owned Real Property unless the Person receiving such Lien provides to the Administrative Agent a Collateral Access Agreement as described herein. Each Loan Party shall timely and fully pay and perform in all material respects its obligations under any financing arrangements that it enters into with respect to such owned Real Property.
Section 5.17 Subordination of Intercompany Notes.
(f) All Indebtedness evidenced by an Intercompany Note, together with all accru