Exhibit 10.9
CREDIT AGREEMENT, dated as of March 21, 2003 (herein, as amended,
supplemented or otherwise modified from time to time, "this Agreement"), among
the following:
(i) CALGON CARBON CORPORATION, a Delaware corporation (herein,
together with its successors and assigns, the "Borrower");
(ii) the lending institutions listed in Annex I hereto (herein,
together with its or their successors and assigns, each a "Lender" and
collectively, the "Lenders"); and
(iii) NATIONAL CITY BANK OF PENNSYLVANIA, a national banking
association, as one of the Lenders, as the Lender under the Swing Line
Revolving Facility referred to herein (together with its successors and
assigns, in such capacity, the "Swing Line Lender"), as the lead arranger
and book manager and as administrative agent (in such capacity, the
"Administrative Agent").
PRELIMINARY STATEMENTS:
(1) Unless otherwise defined herein, all capitalized terms used herein and
defined in section 1 are used herein as so defined.
(2) The Borrower has applied to the Lenders for credit facilities in order
to (i) refinance certain indebtedness of the Borrower and (ii) provide working
capital and funds for capital expenditures and other lawful purposes.
(3) Subject to and upon the terms and conditions set forth herein, the
Lenders are willing to make available to the Borrower the credit facilities
provided for herein.
NOW, THEREFORE, it is agreed and the parties intending to be legally bound
hereby:
SECTION 1. DEFINITIONS AND TERMS.
1.1. Certain Defined Terms. As used herein, the following terms shall have
the meanings herein specified unless the context otherwise requires:
"Account" shall mean any present or future right to payment for goods sold
or leased or for services rendered, whether now existing or hereafter arising
and whether or not earned by performance.
"Acquisition" shall mean and include (i) any acquisition on a going concern
basis (whether by purchase, lease or otherwise) of any facility and/or business
operated by any person who is not a Subsidiary of the Borrower, and (ii) any
acquisition of a majority of the outstanding equity or other similar interests
in any such person (whether by merger, stock purchase or otherwise).
"Administrative Agent" shall have the meaning provided in the first
paragraph of this Agreement and shall include any successor to the
Administrative Agent appointed pursuant to section 12.9.
"Affiliate" shall mean, with respect to any person, any other person
directly or indirectly controlling, controlled by, or under direct or indirect
common control with such person. A person shall be deemed to control a second
person if such first person possesses, directly or indirectly, the power (i) to
vote 10% or more of the securities having ordinary voting power for the election
of directors or managers of such second person or (ii) to direct or cause the
direction of the management and policies of such second person, whether through
the ownership of voting securities, by contract or otherwise.
Notwithstanding the foregoing, (x) a director, officer or employee of a person
shall not, solely by reason of such status, be considered an Affiliate of such
person; and (y) neither the Administrative Agent nor any Lender shall in any
event be considered an Affiliate of the Borrower or any of its Subsidiaries.
"Agreement" shall have the meaning provided in the introductory paragraph
of this Agreement.
"Alternative Currency" shall mean and include: (i) the currencies listed on
Annex VIII, if at the time the applicable currency is readily and freely
transferable and convertible into Dollars; and (ii) any other lawful currency
other than Dollars that is readily and freely transferable and convertible into
Dollars and is acceptable to the Lenders as provided in section 2.3(b), as
applicable, and any applicable Letter of Credit Issuer.
"Alternative Currency Sublimit" shall have the meaning provided in Section
2.1(a).
"Applicable Eurodollar Margin" shall have the meaning provided in section
2.8(h).
"Applicable Facility Fee Rate" shall have the meaning provided in section
4.1(b).
"Applicable Lending Office" shall mean, with respect to each Lender, (i)
such Lender's Domestic Lending Office in the case of Borrowings consisting of
Prime Rate Loans and (ii) such Lender's Eurodollar Lending Office in the case of
Borrowings consisting of Eurodollar Loans.
"Applicable Prime Rate Margin" shall have the meaning provided in section
2.8(h).
"Approved Bank" shall have the meaning provided in the definition of Cash
Equivalents.
"Asset Sale" shall mean the sale, transfer or other disposition (including
by means of Sale and Lease-Back Transactions, and by means of mergers,
consolidations, and liquidations of a corporation, partnership or limited
liability company of the interests therein of the Borrower or any Subsidiary) by
the Borrower or any Subsidiary to any person other than the Borrower or any
Subsidiary of any of their respective assets, provided that the term Asset Sale
specifically excludes any sales, transfers or other dispositions of inventory,
or obsolete or excess furniture, fixtures, equipment or other property, tangible
or intangible, in each case in the ordinary course of business.
"Assignment Agreement" shall mean an Assignment Agreement substantially in
the form of Exhibit E hereto.
"Augmenting General Revolving Lender" shall have the meaning provided in
Section 2.1(c).
"Authorized Officer" shall mean any officer or employee of the Borrower
designated as such in writing to the Administrative Agent by the Borrower.
"Bankruptcy Code" shall have the meaning provided in section 11.1(g).
"Basket Investments" shall have the meaning provided in Section 10.5(m).
"Borrower" shall have the meaning provided in the first paragraph of this
Agreement.
"Borrowing" shall mean (i) the incurrence of General Revolving Loans
consisting of one Type of Loan, by the Borrower from all of the Lenders having
Commitments in respect thereof on a pro rata basis on a given date (or resulting
from Conversions, Continuations or Redenominations on a given date),
-2-
having in the case of Eurodollar Loans the same Interest Period, or (ii) the
incurrence of a Swing Line Revolving Loan of a single Type from the Swing Line
Lender on a given date.
"Business Day" shall mean: (i) for all purposes other than as covered by
clause (ii) below, any day excluding Saturday, Sunday and any day that shall be
in the city in which the applicable Payment Office is located a legal holiday or
a day on which banking institutions are authorized by law or other governmental
actions to close; and (ii) with respect to all notices and determination in
connection with, and payments of principal and interest on, Eurodollar Loans,
any day that is a Business Day described in clause (i) and that is also a day on
which dealings are carried on in the London interbank market and banks are open
for business in London and in the country of issue of any Alternative Currency
in which any applicable Eurodollar Loans are denominated.
"Capital Lease" as applied to any person shall mean any lease of any
property (whether real, personal or mixed) by that person as lessee that, in
conformity with GAAP, is accounted for as a capital lease on the balance sheet
of that person.
"Capitalized Lease Obligations" shall mean all obligations under Capital
Leases of the Borrower or any of its Subsidiaries in each case taken at the
amount thereof accounted for as liabilities identified as "capital lease
obligations" (or any similar words) on a consolidated balance sheet of the
Borrower and its Subsidiaries prepared in accordance with GAAP.
"Cash Equivalents" shall mean any of the following (including foreign
equivalents thereof):
(i) securities issued or directly and fully guaranteed or insured by
the United States of America or any agency or instrumentality thereof
(provided that the full faith and credit of the United States of America is
pledged in support thereof) having maturities of not more than one year
from the date of acquisition;
(ii) U.S. dollar denominated time deposits, certificates of deposit
and bankers' acceptances of (x) any Lender or (y) any bank whose short-term
commercial paper rating from S&P is at least A-1 or the equivalent thereof
or from Xxxxx'x is at least P-1 or the equivalent thereof (any such bank,
an "Approved Bank"), in each case with maturities of not more than 180 days
from the date of acquisition;
(iii) commercial paper issued by any Lender or Approved Bank or by the
parent company of any Lender or Approved Bank and commercial paper issued
by, or guaranteed by, any industrial or financial company with a short-
term commercial paper rating of at least A-1 or the equivalent thereof by
S&P or at least P-1 or the equivalent thereof by Moody's, or guaranteed by
any industrial company with a long term unsecured debt rating of at least A
or A2, or the equivalent of each thereof, from S&P or Moody's, as the case
may be, and in each case maturing within 270 days after the date of
acquisition;
(iv) investments in money market funds substantially all the assets of
which are comprised of securities of the types described in clauses (i)
through (iii) above; and
(v) investments in money market funds access to which is provided as
part of "sweep" accounts maintained with a Lender or an Approved Bank.
"Cash Proceeds" shall mean, with respect to any: (i) Asset Sale, the
aggregate cash payments (including any cash received by way of deferred payment
pursuant to a note receivable issued in connection with such Asset Sale, other
than the portion of such deferred payment constituting interest, but
-3-
only as and when so received) received by the Borrower and/or any Subsidiary
from such Asset Sale; (ii) Event of Loss, the aggregate cash payments received
by the Borrower and/or any Subsidiary as the result of such Event of Loss; and
(iii) Material Recovery Event, the aggregate cash payments received by the
Borrower and/or any Subsidiary as the result of such Material Recovery Event.
"CERCLA" shall mean the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, as the same may be amended from time to time, 42
U.S.C.(S). 9601 et seq.
"Change of Control" shall mean and include any of the following:
(i) during any period of two consecutive calendar years, individuals
who at the beginning of such period constituted the Borrower's Board of
Directors (together with any new directors (x) whose election by the
Borrower's Board of Directors was, or (y) whose nomination for election by
the Borrower's shareholders was (prior to the date of the proxy or consent
solicitation relating to such nomination), approved by a vote of at least
two-thirds of the directors then still in office who either were directors
at the beginning of such period or whose election or nomination for
election was previously so approved), shall cease for any reason to
constitute a majority of the directors then in office;
(ii) any person or group (as such term is defined in section 13(d)(3)
of the 0000 Xxx) shall acquire, directly or indirectly, beneficial
ownership (within the meaning of Rule 13d-3 and 13d-5 of the 0000 Xxx) of
more than 35%, on a fully diluted basis, of the economic or voting interest
in the Borrower's capital stock;
(iii) the shareholders of the Borrower approve a merger or
consolidation of the Borrower with any other person, other than a merger or
consolidation that would result in the voting securities of the Borrower
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted or exchanged for voting
securities of the surviving or resulting entity) more than 75% of the
combined voting power of the voting securities of the Borrower or such
surviving or resulting entity outstanding after such merger or
consolidation;
(iv) the shareholders of the Borrower approve a plan of complete
liquidation of the Borrower or an agreement or agreements for the sale or
disposition by the Borrower of all or substantially all of the Borrower's
assets; and/or
(v) any "change in control" or any similar term as defined in any of
the indentures, credit agreements, note or securities purchase agreements,
or other agreements or instruments governing any Indebtedness of the
Borrower or any of its Subsidiaries with an outstanding principal amount,
or providing for commitments to lend or otherwise invest or purchase in an
outstanding principal amount, of at least $10,000,000 (or the equivalent
amount in any other currency).
"Claims" shall have the meaning provided in the definition of Environmental
Claims.
"Closing Date" shall mean the date, on or after the Effective Date, upon
which the conditions specified in section 7.1 are satisfied.
"Code" shall mean the Internal Revenue Code of 1986, as amended from time
to time, and the regulations promulgated thereunder. Section references to the
Code are to the Code, as in effect at the
-4-
Effective Date and any subsequent provisions of the Code, amendatory thereof,
supplemental thereto or substituted therefor.
"Commitment" shall mean, with respect to each Lender, its General Revolving
Commitment, its Incremental General Revolving Commitment or its Swing Line
Revolving Commitment, or both, as the case may be.
"Confidential Information" shall have the meaning provided in section
13.15.
"Consolidated Amortization Expense" shall mean, for any period, all
amortization expenses, including without limitation, amortization of goodwill,
of the Borrower and its Subsidiaries, all as determined for the Borrower and its
Subsidiaries on a consolidated basis in accordance with GAAP.
"Consolidated Capital Expenditures" shall mean, for any period, the
aggregate of all expenditures for property, plant or equipment (whether paid in
cash or accrued as liabilities and including in all events amounts expended or
capitalized under Capital Leases and Synthetic Leases but excluding any amount
representing capitalized interest) by the Borrower and its Subsidiaries during
that period.
"Consolidated Cash" shall mean, as of any date, the aggregate cash and Cash
Equivalents held by the Borrower and its Subsidiaries.
"Consolidated Depreciation Expense" shall mean, for any period, all
depreciation expenses of the Borrower and its Subsidiaries, all as determined
for the Borrower and its Subsidiaries on a consolidated basis in accordance with
GAAP.
"Consolidated EBIT" shall mean, for any period, Consolidated Net Income for
such period; plus the sum (without duplication) of the amounts for such period
included in determining such Consolidated Net Income of (i) Consolidated
Interest Expense, (ii) Consolidated Income Tax Expense, (iii) extraordinary and
other non-recurring non-cash losses and charges, (iv) expenses attributable to
stock options, (v) one time expenses incurred or accrued on or prior to March
31, 2003 associated with the resignation and separation of Xxx Xxxxxxx in an
amount not to exceed $2,000,000; (vi) one time non-cash restructuring,
reorganization and implementation charges associated with Permitted
Dispositions, and (vii) the cumulative effect of changes in accounting
principles adopted after the date hereof less (B) extraordinary or other
non-recurring gains, all as determined for the Borrower and its Subsidiaries on
a consolidated basis in accordance with GAAP, except that in computing
Consolidated Net Income for purposes of this definition, there shall be excluded
therefrom (x) the income (or loss) of any entity (other than Subsidiaries of the
Borrower) in which the Borrower or any of its Subsidiaries has a joint or
minority interest, except to the extent of the amount of dividends or other
distributions actually paid to the Borrower or any of its Subsidiaries during
such period, and (y) the income of any Subsidiary of the Borrower to the extent
that the declaration or payment of dividends or similar distributions by that
Subsidiary of that income is not at the time permitted by operation of the terms
of its charter or any agreement, instrument, judgment, decree, order, statute,
rule or governmental regulation applicable to that Subsidiary; and provided
that, notwithstanding anything to the contrary contained herein, the Borrower's
Consolidated EBIT for any Testing Period shall (x) include the appropriate
financial items for any person or business unit that has been acquired by the
Borrower for any portion of such Testing Period prior to the date of
acquisition, and (y) exclude the appropriate financial items for any person or
business unit that has been disposed of by the Borrower, for the portion of such
Testing Period prior to the date of disposition.
"Consolidated EBITDA" shall mean, for any period, Consolidated EBIT for
such period; plus (A) the sum (without duplication) of the amounts for such
period included in determining such Consolidated Net Income of (i) Consolidated
Depreciation Expense, and (ii) Consolidated Amortization Expense, all as
determined for the Borrower and its Subsidiaries on a consolidated basis in
accordance
-5-
with GAAP, provided that, notwithstanding anything to the contrary contained
herein, the Borrower's Consolidated EBITDA for any Testing Period shall (x)
include the appropriate financial items for any person or business unit that has
been acquired by the Borrower for any portion of such Testing Period prior to
the date of acquisition, and (y) exclude the appropriate financial items for any
person or business unit that has been disposed of by the Borrower, for the
portion of such Testing Period prior to the date of disposition.
"Consolidated Income Tax Expense" shall mean, for any period, all
provisions for taxes based on the net income of the Borrower or any of its
Subsidiaries, all as determined for the Borrower and its Subsidiaries on a
consolidated basis in accordance with GAAP.
"Consolidated Interest Expense" shall mean, for any period, interest
expense net of interest income of the Borrower and its Subsidiaries on a
consolidated basis with respect to all outstanding Indebtedness of the Borrower
and its Subsidiaries, all as determined for the Borrower and its Subsidiaries on
a consolidated basis in accordance with GAAP.
"Consolidated Net Income" shall mean for any period, the net income (or
loss) of the Borrower and its Subsidiaries on a consolidated basis for such
period taken as a single accounting period determined in conformity with GAAP.
"Consolidated Net Worth" shall mean at any time for the determination
thereof (i) all amounts that, in conformity with GAAP (without giving effect to
any non-cash losses as a result of impairment of goodwill as required by
Statement of Financial Accounting Standards No. 142), would be included under
the caption "total stockholders' equity" (or any like caption) on a consolidated
balance sheet of the Borrower as at such date, provided that in no event shall
Consolidated Net Worth include any amounts in respect of Redeemable Stock.
"Consolidated Total Assets" shall mean with respect to any person at any
date of determination the net book value of all assets that would appear on a
consolidated balance sheet of such person and its consolidated Subsidiaries at
such date that is prepared in accordance with GAAP.
"Consolidated Total Debt" shall mean the sum (without duplication) of the
principal amount (or Capitalized Lease Obligation, in the case of a Capital
Lease, or present value, based on the implicit interest rate, in the case of any
Synthetic Lease, or the higher of liquidation value or stated value, in the case
of Redeemable Stock) of all Indebtedness of the Borrower and each of its
Subsidiaries, all as determined on a consolidated basis, minus Consolidated
Cash.
"Continue," "Continuation" and "Continued" each refers to a continuation of
a General Revolving Loan that is a Eurodollar Loans for an additional Interest
Period as provided in section 2.9.
"Convert," "Conversion" and "Converted" each refers to a conversion of
General Revolving Loans of one Type into General Revolving Loans of another
Type, pursuant to section 2.7, 2.9(b), 2.10 or 6.2.
"Credit Documents" shall mean this Agreement and the Notes.
"Default" shall mean any event, act or condition that with notice or lapse
of time, or both, would constitute an Event of Default.
"Defaulting Lender" shall mean any Lender with respect to which a Lender
Default is in effect.
-6-
"Dollars," "U.S. dollars," "dollars" and the sign "$" each means lawful
money of the United States.
"Domestic Lending Office" shall mean, with respect to any Lender, the
office of such Lender specified as its Domestic Lending Office in Annex I or in
the Assignment Agreement pursuant to which it became a Lender, or such other
office of such Lender as such Lender may from time to time specify to the
Borrower and the Administrative Agent.
"Domestic Subsidiary" shall mean any Subsidiary other than a Foreign
Subsidiary.
"Effective Date" shall have the meaning provided in section 13.10.
"Eligible Accounts Receivable" shall mean, as of any date, the gross
outstanding balance on such date, determined in accordance with GAAP and stated
on a basis consistent with the historical practices of the Borrower as of the
Closing Date, of Accounts of the Borrower and its Subsidiaries, less the sum of
(x) reserves established in respect of Accounts and (y) any amount that the
Administrative Agent determines in its good faith business judgment to be
ineligible for purposes of calculating the covenant set forth in Section 10.7.
"Eligible Inventory" shall mean, as of any date, the aggregate value of the
Inventory of the Borrower and its Subsidiaries valued at the lower of cost or
market and on a first-in, first-out basis, excluding such Inventory as the
Administrative Agent determines in its good faith business judgment to be
ineligible for purposes of calculating the covenant set forth in Section 10.7.
"Eligible PP&E" shall mean, as of any date, the net book value of the
property, plant and equipment of the Borrower and its Subsidiaries as reflected
on the Borrower's most recent financial statements.
"Eligible Transferee" shall mean and include a commercial bank, financial
institution or other "accredited investor" (as defined in SEC Regulation D), in
each case that:
(i) is not disapproved in writing by the Borrower in a notice given to
a requesting Lender and the Administrative Agent, specifying the reasons
for such disapproval, within five Business Days following the giving of
notice to the Borrower of the identity of any proposed transferee (any such
disapproval by the Borrower must be reasonable), provided that (a) this
subclause (i) shall not apply in the case of any participation permitted
pursuant to section 13.4(b) and (b) Borrower shall not be entitled to
exercise the foregoing right of disapproval if and so long as any Event of
Default shall have occurred and be continuing; and
(ii) is not a direct competitor of the Borrower or engaged in the same
or similar principal lines of business as the Borrower and its Subsidiaries
considered as a whole, or a Subsidiary of any such competitor of the
Borrower and its Subsidiaries.
"Environmental Claims" shall mean any and all administrative, regulatory or
judicial actions, suits, demands, demand letters, claims, liens, notices of
non-compliance or violation, investigations or proceedings relating in any way
to any Environmental Law or any permit issued under any such law (hereafter
"Claims"), including, without limitation, (i) any and all Claims by governmental
or regulatory authorities for enforcement, cleanup, removal, response, remedial
or other actions or damages pursuant to any applicable Environmental Law, and
(ii) any and all Claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief resulting from
the storage,
-7-
treatment or Release (as defined in CERCLA) of any Hazardous Materials or
arising from alleged injury or threat of injury to health, safety or the
environment.
"Environmental Law" shall mean any applicable Federal, state, foreign or
local statute, law, rule, regulation, ordinance, code, binding and enforceable
guideline, binding and enforceable written policy and rule of common law now or
hereafter in effect and in each case as amended, and any binding and enforceable
judicial or administrative interpretation thereof, including any judicial or
administrative order, consent, decree or judgment issued to or rendered against
the Borrower or any of its Subsidiaries relating to the environment, employee
health and safety or Hazardous Materials, including, without limitation, CERCLA;
RCRA; the Federal Water Pollution Control Act, 33 U.S.C.(S) 2601 et seq.; the
Clean Air Act, 42 U.S.C.(S) 7401 et seq.; the Safe Drinking Water Act, 42
U.S.C.(S) 3803 et seq.; the Oil Pollution Act of 1990, 33 U.S.C.(S) 2701 et
seq.; the Emergency Planning and the Community Right-to-Know Act of 1986, 42
U.S.C.(S) 11001 et seq., the Hazardous Material Transportation Act, 49
U.S.C.(S) 1801 et seq.; and the Occupational Safety and Health Act, 29
U.S.C.(S) 651 et seq. (to the extent it regulates occupational exposure to
Hazardous Materials); and any state and local or foreign counterparts or
equivalents, in each case as amended from time to time.
"ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the regulations promulgated and rulings issued
thereunder. Section references to ERISA are to ERISA, as in effect at the
Effective Date and any subsequent provisions of ERISA, amendatory thereof,
supplemental thereto or substituted therefor.
"ERISA Affiliate" shall mean each person (as defined in section 3(9) of
ERISA) that together with the Borrower or a Subsidiary of the Borrower would be
deemed to be a "single employer": (i) within the meaning of section 414(b),(c),
(m) or (o) of the Code; or (ii) as a result of the Borrower or a Subsidiary of
the Borrower being or having been a general partner of such person.
"Eurodollar Lending Office" shall mean, with respect to any Lender, the
office of such Lender specified as its Eurodollar Lending Office in Annex I or
in the Assignment Agreement pursuant to which it became a Lender, or such other
office or offices (for Eurodollar Loans denominated in Dollars or Alternative
Currencies) of such Lender as such Lender may from time to time specify to the
Borrower and the Administrative Agent.
"Eurodollar Loans" shall mean each Loan, denominated in Dollars or in an
Alternative Currency, bearing interest at the rates provided in section 2.8(b).
"Eurodollar Market Index Rate" shall mean, as of any date, the Eurodollar
Rate applicable to Eurodollar Loans with one month Interest Periods.
"Eurodollar Market Index Rate Loans" shall mean each Swing Line Revolving
Loan bearing interest at the rate provided in Section 2.8(c).
"Eurodollar Rate" shall mean, with respect to each Interest Period for a
Eurodollar Loan, (A) either (i) the rate per annum for deposits in Dollars or in
the relevant Alternative Currency for a maturity most nearly comparable to such
Interest Period that appears on page 3740 or 3750, as applicable, of the Dow
Xxxxx Telerate Screen as of 11:00 A.M. (local time at the Notice Office) on the
date that is two Business Days prior to the commencement of such Interest
Period, or (ii) if such a rate does not appear on such a page, an interest rate
per annum equal to the average (rounded upward to the nearest whole multiple of
1/16 of 1% per annum, if such average is not such a multiple) of the rate per
annum at which deposits in Dollars or in the relevant Alternative Currency are
offered to each of the Reference Banks by prime banks in the London interbank
Eurocurrency market for deposits of amounts in same day funds comparable to the
outstanding principal amount of the Eurodollar Loan for which an interest rate
is then
-8-
being determined with maturities comparable to the Interest Period to be
applicable to such Eurodollar Loan, determined as of 11:00 A.M. (London time) on
the date that is two Business Days prior to the commencement of such Interest
Period, in each case divided (and rounded upward to the nearest whole multiple
of 1/16th of 1%) by (B) a percentage equal to 100% minus the then stated maximum
rate of all reserve requirements (including, without limitation, any marginal,
emergency, supplemental, special or other reserves) applicable to any member
bank of the Federal Reserve System in respect of Eurocurrency liabilities as
defined in Regulation D (or any successor category of liabilities under
Regulation D); provided, however, that in the event that the rate referred to in
clause (i) above is not available at any such time for any reason, then the rate
referred to in clause (i) shall instead be the average (rounded to the nearest
ten thousandth of 1%) of the rates at which U.S. dollar deposits of $5,000,000
are offered to the Reference Banks in the London interbank market at
approximately 11:00 a.m. (London time), two Business Days prior to the
commencement of such Interest Period, for contracts that would be entered into
at the commencement of such Interest Period.
"Euros" shall mean the single currency of the European Union.
"Event of Default" shall have the meaning provided in section 11.1.
"Event of Loss" shall mean, with respect to any property: (i) the actual or
constructive total loss of such property or the use thereof, resulting from
destruction, damage beyond repair, or the rendition of such property permanently
unfit for normal use from any casualty or similar occurrence whatsoever; (ii)
the destruction or damage of a portion of such property from any casualty or
similar occurrence whatsoever under circumstances in which such damage cannot
reasonably be expected to be repaired, or such property cannot reasonably be
expected to be restored to its condition immediately prior to such destruction
or damage, within 180 days after the occurrence of such destruction or damage;
(iii) the condemnation, confiscation or seizure of, or requisition of title to
or use of, any property; or (iv) in the case of any property located upon a
Leasehold, the termination or expiration of such Leasehold.
"Existing Indebtedness" shall have the meaning provided in section 8.18.
"Existing Indebtedness Agreements" shall have the meaning provided in
section 8.18.
"Existing Letter of Credit" shall have the meaning provided in section
3.1(d).
"Facility" shall mean the General Revolving Facility or the Swing Line
Revolving Facility, as applicable.
"Facility Fee" shall have the meaning provided in section 4.1(a).
"Federal Funds Effective Rate" shall mean, for any period, a fluctuating
interest rate equal for each day during such period to the weighted average of
the rates on overnight Federal Funds transactions with members of the Federal
Reserve System arranged by Federal Funds brokers, as published for such day (or,
if such day is not a Business Day, for the next preceding Business Day) by the
Federal Reserve Bank of New York, or, if such rate is not so published for any
day that is a Business Day, the average of the quotations for such day on such
transactions received by the Administrative Agent from three Federal Funds
brokers of recognized standing selected by the Administrative Agent.
"Fees" shall mean all amounts payable pursuant to, or referred to in,
section 4.
"Facing Fee" shall have the meaning provided in section 4.3.
"Financial Projections" shall have the meaning provided in section 8.8(b).
-9-
"Foreign Lender" shall mean a person that is not a United States person (as
such term is defined in section 7701(a)(30) of the Code) for Federal Income Tax
purposes.
"Foreign Subsidiary" shall mean any Subsidiary: (i) that is not
incorporated in the United States and substantially all of whose assets and
properties are located, or substantially all of whose business is carried on,
outside the United States; or (ii) substantially all of whose assets consist of
Subsidiaries that are Foreign Subsidiaries as defined in clause (i) of this
definition.
"GAAP" shall mean generally accepted accounting principles in the United
States of America as in effect from time to time; it being understood and agreed
that determinations in accordance with GAAP for purposes of section 10,
including defined terms as used therein, are subject (to the extent provided
therein) to sections 1.3 and 13.7(a).
"General Revolving Commitment" shall mean, with respect to each Lender, the
amount, if any, set forth opposite such Lender's name in Annex I as its "General
Revolving Commitment" as the same may be reduced from time to time pursuant to
section 5.1, 5.2 and/or 11.2 or adjusted from time to time as a result of
assignments to or from such Lender pursuant to section 13.4.
"General Revolving Facility" shall mean the credit facility evidenced by
the Total General Revolving Commitment.
"General Revolving Facility Percentage" shall mean at any time for any
Lender with a General Revolving Commitment, the percentage obtained by dividing
such Lender's General Revolving Commitment by the Total General Revolving
Commitment, provided, that if the Total General Revolving Commitment has been
terminated, the General Revolving Facility Percentage for each Lender with a
General Revolving Commitment shall be determined by dividing such Lender's
General Revolving Commitment immediately prior to such termination by the Total
General Revolving Commitment immediately prior to such termination.
"General Revolving Loan" shall have the meaning provided in section 2.1(a).
"General Revolving Note" shall have the meaning provided in section 2.6(a).
"Granting Lender" shall have the meaning provided in Section 13.4(f).
"Guaranty Obligations" shall mean as to any person (without duplication)
any obligation of such person guaranteeing any Indebtedness ("primary
Indebtedness") of any other person (the "primary obligor") in any manner,
whether directly or indirectly, including, without limitation, any obligation of
such person, whether or not contingent, (a) to purchase any such primary
Indebtedness or any property constituting direct or indirect security therefor,
(b) to advance or supply funds (i) for the purchase or payment of any such
primary Indebtedness or (ii) to maintain working capital or equity capital of
the primary obligor or otherwise to maintain the net worth or solvency of the
primary obligor, (c) to purchase property, securities or services primarily for
the purpose of assuring the owner of any such primary Indebtedness of the
ability of the primary obligor to make payment of such primary Indebtedness, or
(d) otherwise to assure or hold harmless the owner of such primary Indebtedness
against loss in respect thereof, provided, however, that the term Guaranty
Obligation shall not include endorsements of instruments for deposit or
collection in the ordinary course of business. The amount of any Guaranty
Obligation shall be deemed to be an amount equal to the stated or determinable
amount of the primary Indebtedness in respect of that such Guaranty Obligation
is made or, if not stated or determinable, the maximum reasonably anticipated
liability in respect thereof (assuming such person is required to perform
thereunder) as determined by such person in good faith.
-10-
"Hazardous Materials" shall mean: (i) any petrochemical or petroleum
products, radioactive materials, asbestos in any form that is or could become
friable, urea formaldehyde foam insulation, transformers or other equipment that
contain dielectric fluid containing levels of polychlorinated biphenyls, and
radon gas; and (ii) any chemicals, materials or substances defined as or
included in the definition of "hazardous substances," "hazardous wastes,"
"hazardous materials," "restricted hazardous materials," "extremely hazardous
wastes," "restrictive hazardous wastes," "toxic substances," "toxic pollutants,"
"contaminants" or "pollutants," or words of similar meaning and regulatory
effect, under any applicable Environmental Law.
"Hedge Agreement" shall mean any interest rate swap agreement, any interest
rate cap agreement, any interest rate collar agreement or other similar
agreement or arrangement designed to protect against fluctuations in interest
rates; provided, however, that in each case, the documentation with respect to
such arrangements shall conform to any form of master agreement published by the
International Swaps and Derivatives Association, Inc.
"Increasing General Revolving Lender" shall have the meaning provided in
Section 2.1(c).
"Incremental Facility Loans" shall mean any Loans made pursuant to the
Incremental General Revolving Facility.
"Incremental General Revolving Commitment" shall mean the commitment of any
Lender, established pursuant to section 2.1(c), to make Incremental Facility
Loans to the Borrower.
"Incremental General Revolving Facility" shall mean the credit facility
created pursuant to Section 2.1(c).
"Incremental General Revolving Facility Amount" shall mean an amount not to
exceed $25,000,000, less the amount of any previous Incremental General
Revolving Facility.
"Indebtedness" of any person shall mean without duplication:
(i) all indebtedness of such person for borrowed money;
(ii) all bonds, notes, debentures and similar debt securities of such
person;
(iii) the deferred purchase price of capital assets or services that
in accordance with GAAP would be shown on the liability side of the balance
sheet of such person;
(iv) the face amount of all letters of credit issued for the account
of such person and, without duplication, all drafts drawn thereunder;
(v) all obligations, contingent or otherwise, of such person in
respect of bankers' acceptances;
(vi) all Indebtedness of a second person secured by any Lien on any
property owned by such first person, whether or not such Indebtedness has
been assumed;
(vii) all Capitalized Lease Obligations of such person;
(viii) the present value, determined on the basis of the implicit
interest rate, of all basic rental obligations under all Synthetic Leases
of such person;
-11-
(ix) all net obligations of such person under Hedge Agreements;
(x) the full outstanding balance of trade receivables, notes or other
instruments sold with full recourse (and the portion thereof subject to
potential recourse, if sold with limited recourse), other than in any such
case any thereof sold solely for purposes of collection of delinquent
accounts;
(xi) the stated value, or liquidation value if higher, of all
Redeemable Stock of such person; and
(xii) all Guaranty Obligations of such person;
provided that: (x) neither trade payables nor other similar accrued expenses, in
each case arising in the ordinary course of business, nor obligations in respect
of insurance policies or performance or surety bonds that themselves are not
guarantees of Indebtedness (nor drafts, acceptances or similar instruments
evidencing the same nor obligations in respect of letters of credit supporting
the payment of the same), shall constitute Indebtedness; and (y) the
Indebtedness of any person shall in any event include (without duplication) the
Indebtedness of any other entity (including any general partnership in which
such person is a general partner) to the extent such person is liable thereon as
a result of such person's ownership interest in or other relationship with such
entity, except to the extent the terms of such Indebtedness provide expressly
that such person is not liable thereon.
"Indemnitees" shall have the meaning provided in Section 13.1(f).
"Interest Coverage Ratio" shall mean, for any Testing Period, the ratio of
(i) Consolidated EBIT for such Testing Period, to (ii) the Consolidated Interest
Expense for such Testing Period, in each case on a consolidated basis for the
Borrower and its Subsidiaries for such Testing Period.
"Interest Period" with respect to any Eurodollar Loan shall mean the
interest period applicable thereto, as determined pursuant to section 2.9.
"Inventory" shall mean, as of any date, the net book value of the inventory
of the Borrower and its Subsidiaries as reflected on the Borrower's most recent
financial statements.
"Leaseholds" of any person means all the right, title and interest of such
person as lessee or licensee in, to and under leases or licenses of land,
improvements and/or fixtures.
"Lender" shall have the meaning provided in the first paragraph of this
Agreement.
"Lender Default" shall mean: (i) the refusal (that has not been retracted)
of a Lender in violation of its obligations under this Agreement to make
available its portion of any incurrence of Loans or to fund its portion of any
Swing Line Participation Amount under section 2.5(b); or (ii) a Lender having
notified the Administrative Agent and/or the Borrower that it does not intend to
comply with such obligations, in the case of either (i) or (ii) as a result of
the appointment of a receiver or conservator with respect to such Lender at the
direction or request of any regulatory agency or authority.
"Lender Register" shall have the meaning provided in section 13.16.
"Letter of Credit" shall have the meaning provided in section 3.1(a).
"Letter of Credit Documents" shall have the meaning specified in section
3.2(a).
-12-
"Letter of Credit Fee" shall have the meaning provided in section 4.2.
"Letter of Credit Issuer" shall mean: (i) in respect of each Existing
Letter of Credit, the Lender that has issued same as of the Effective Date; and
(ii) in respect of any other Letter of Credit, NCB or any other Lender so long
as such Lender is a Non-Defaulting Lender and otherwise has satisfied and/or
continues to satisfy its obligations as a Letter of Credit Issuer hereunder.
"Letter of Credit Outstandings" shall mean, at any time, the sum, without
duplication, of (i) the aggregate Stated Amount of all outstanding Letters of
Credit and (ii) the aggregate amount of all Unpaid Drawings.
"Letter of Credit Request" shall have the meaning provided in section
3.2(a).
"Letter of Credit Sublimit" shall have the meaning provided in section
3.1(b).
"Lien" shall mean any mortgage, pledge, security interest, encumbrance,
lien or charge of any kind (including any agreement to give any of the
foregoing, any conditional sale or other title retention agreement or any lease
in the nature thereof).
"Loan" shall have the meaning provided in section 2.1 and shall include any
General Revolving Loan or Swing Line Revolving Loan, as the case may be.
"Margin Stock" shall have the meaning provided in Regulation U.
"Material Adverse Effect" shall mean any or all of the following: (i) any
material adverse effect on the business, operations, property, assets,
liabilities or condition (financial or otherwise) of, when used with reference
to the Borrower and/or any of its Subsidiaries, the Borrower and its
Subsidiaries, taken as a whole, or when used with reference to any other person,
such person and its Subsidiaries, taken as a whole, as the case may be; (ii) any
material adverse effect on the ability of the Borrower to perform its
obligations under the Credit Documents to which it is a party; (iii) any
material adverse effect on the ability of the Borrower and its Subsidiaries,
taken as a whole, to pay their liabilities and obligations as they mature or
become due; or (iv) any material adverse effect on the validity, effectiveness
or enforceability, as against the Borrower, of any of the Credit Documents to
which it is a party.
"Material Recovery Event" shall mean the receipt by the Borrower or any
Subsidiary of any proceeds resulting from or awarded in connection with the
settlement or favorable decision of any litigation, arbitration, or other legal
proceeding (other than amounts, if any, specifically designated to cover fees
and expenses of counsel), in excess of $2,000,000 in any fiscal year other than
as a result of any of the items disclosed on Annex VII.
"Material Subsidiary" shall mean, at any time, with reference to any
person, any Subsidiary of such person (i) that has assets at such time
comprising 5% or more of the consolidated assets of such person and its
Subsidiaries, or (ii) whose operations in the current fiscal year are expected
to, or whose operations in the most recent fiscal year did (or would have if
such person had been a Subsidiary for such entire fiscal year), represent 5% or
more of the consolidated earnings before interest, taxes, depreciation and
amortization of such person and its Subsidiaries for such fiscal year; provided,
however, that to the extent all Subsidiaries of such person constituting
Non-Material Subsidiaries (a) account in the aggregate for more than 7.5% or
more of the consolidated assets of such person and its Subsidiaries, or (b)
whose operations in the current fiscal year are expected to, or whose operations
in the most recent fiscal year did (or would have if such person had been a
Subsidiary for such entire fiscal year), represent 7.5% or more of the
consolidated earnings before interest, taxes, depreciation and amortization of
such person and its Subsidiaries for such fiscal year, then each such Subsidiary
shall be deemed a Material Subsidiary.
-13-
"Maturity Date" shall mean March 21, 2006 or such earlier date on which the
Total Commitment is terminated.
"Minimum Borrowing Amount" shall mean: (i) for General Revolving Loans that
are (A) Prime Rate Loans, $2,500,000, with minimum increments thereafter of
$500,000, or (B) Eurodollar Loans, $5,000,000 (or the substantial equivalent
thereof in any Alternative Currency), with minimum increments thereafter of
$1,000,000 (or the substantial equivalent thereof in any Alternative Currency);
and (ii) for Swing Line Revolving Loans, $500,000, with minimum increments
thereafter of $100,000.
"Moody's" shall mean Xxxxx'x Investors Service, Inc. and its successors.
"Multiemployer Plan" shall mean a multiemployer plan, as defined in section
4001(a)(3) of ERISA to which the Borrower or any ERISA Affiliate is making or
accruing an obligation to make contributions or has within any of the preceding
three plan years made or accrued an obligation to make contributions.
"Multiple Employer Plan" shall mean a Plan, other than a Multiemployer
Plan, to which the Borrower or any ERISA Affiliate, and one or more employers
other than the Borrower or an ERISA Affiliate, is making or accruing an
obligation to make contributions or, in the event that any such plan has been
terminated, to which the Borrower or an ERISA Affiliate made or accrued an
obligation to make contributions during any of the five plan years preceding the
date of termination of such plan.
"NCB" shall mean National City Bank of Pennsylvania, a national banking
association, together with its affiliates, successors and assigns.
"Net Cash Proceeds" shall mean, with respect to any: (i) Asset Sale, the
Cash Proceeds resulting therefrom net of (a) reasonable and customary expenses
of sale incurred in connection with such Asset Sale, and other reasonable and
customary fees and expenses incurred, and all state, and local taxes paid or
reasonably estimated to be payable by such person, as a consequence of such
Asset Sale and the payment of principal, premium and interest of Indebtedness
secured by the asset that is the subject of the Asset Sale and required to be,
and that is, repaid under the terms thereof as a result of such Asset Sale, (b)
amounts of any distributions payable to holders of minority interests in the
relevant person or in the relevant property or assets and (c) incremental income
taxes paid or payable as a result thereof; (ii) Event of Loss, the Cash Proceeds
resulting therefrom net of (a) reasonable and customary expenses incurred in
connection with such Event of Loss, and other reasonable and customary fees and
expenses incurred, and all state, and local taxes paid or reasonably estimated
to be payable by such person, as a consequence of such Event of Loss and the
payment of principal, premium and interest of Indebtedness secured by the asset
that is the subject of the Event of Loss and required to be, and that is, repaid
under the terms thereof as a result of such Event of Loss, (b) amounts of any
distributions payable to holders of minority interests in the relevant person or
in the relevant property or assets and (c) incremental income taxes paid or
payable as a result thereof; and (iii) Material Recovery Event, the Cash
Proceeds resulting therefrom net of (a) reasonable and customary expenses
incurred in connection with such Material Recovery Event, and other reasonable
and customary fees and expenses incurred, and all state, and local taxes paid or
reasonably estimated to be payable by such person, as a consequence of such
Material Recovery Event and the payment of principal, premium and interest of
Indebtedness secured by the asset that is the subject of the Material Recovery
Event and required to be, and that is, repaid under the terms thereof as a
result of such Material Recovery Event, (b) amounts of any distributions payable
to holders of minority interests in the relevant person or in the relevant
property or assets and (c) incremental income taxes paid or payable as a result
thereof
"Net Debt Proceeds" shall mean, with respect to the incurrence, sale or
issuance by the Borrower or any of its Subsidiaries of any Indebtedness after
the date hereof (other than any Indebtedness permitted
-14-
by Section 10.4), the excess of (i) the gross cash proceeds received by such
person from such incurrence, sale or issuance, over (ii) all reasonable and
customary underwriting commissions and legal, investment banking, brokerage and
accounting and other professional fees, sales commissions and disbursements
actually incurred in connection with such incurrence, sale or issuance that have
not been paid to an Affiliate of the Borrower in connection therewith.
"1934 Act" shall mean the Securities Exchange Act of 1934, as amended.
"Non-Defaulting Lender" shall mean each Lender other than a Defaulting
Lender.
"Non-Increasing General Revolving Lender" shall have the meaning provided
in section 2.1(c).
"Non-Material Subsidiary" shall mean a Subsidiary that is not a Material
Subsidiary.
"Note" shall mean a General Revolving Note or a Swing Line Revolving Note,
as the case may be.
"Notice of Borrowing" shall have the meaning provided in section 2.3(a).
"Notice of Continuation" shall have the meaning provided in section 2.9(a).
"Notice of Conversion" shall have the meaning provided in section 2.7(a).
"Notice Office" shall mean the office of the Administrative Agent at 000
Xxxxxx Xxxxxx, Xxxxxxx 00-0000, Xxxxxxxxx, Xxxx 00000, Attention: Agent Services
(facsimile: (000) 000-0000), or such other office, located in a city in the
United States Eastern Time Zone, as the Administrative Agent may designate to
the Borrower from time to time.
"Notice of Redenomination" shall have the meaning provided in Section
2.7(b).
"Notice of Swing Line Refunding" shall have the meaning provided in section
2.5(a).
"Obligations" shall mean all amounts, direct or indirect, contingent or
absolute, of every type or description, and at any time existing, owing by the
Borrower to the Administrative Agent or any Lender pursuant to the terms of this
Agreement or any other Credit Document.
"Operating Lease" as applied to any person shall mean any lease of any
property (whether real, personal or mixed) by that person as lessee that, in
conformity with GAAP, is not accounted for as a Capital Lease on the balance
sheet of that person.
"Participant" shall have the meaning provided in section 3.4(a).
"Payment Office" shall mean the office of the Administrative Agent at 000
Xxxxxx Xxxxxx, Xxxxxxx 00-0000, Xxxxxxxxx, Xxxx 00000, Attention: Agent Services
(facsimile: (000) 000-0000), or such other office, located in a city in the
United States Eastern Time Zone, as the Administrative Agent may designate to
the Borrower from time to time.
"PBGC" shall mean the Pension Benefit Guaranty Corporation established
pursuant to section 4002 of ERISA, or any successor thereto.
"Percentage" shall mean the General Revolving Facility Percentage or the
Swing Line Revolving Facility Percentage, as applicable.
-15-
"Permitted Acquisition" shall mean and include any Acquisition as to which
all of the following conditions are satisfied:
(i) such Acquisition involves a line or lines of business that is
complementary to the lines of business in which the Borrower and its
Subsidiaries, considered as an entirety, are engaged on the Effective Date,
unless the Required Lenders specifically approve or consent to such
Acquisition in writing;
(ii) such Acquisition is not actively opposed by the Board of
Directors (or similar governing body) of the selling person or the person
whose equity interests are to be acquired, unless all of the Lenders
specifically approve or consent to such Acquisition in writing;
(iii) if as a result of an Acquisition a person becomes a Subsidiary
of the Borrower, such Subsidiary shall be a Wholly-Owned Subsidiary;
(iv) the aggregate consideration for such Acquisition, including the
principal amount of any assumed Indebtedness and (without duplication) any
Indebtedness of any acquired person or persons, does not exceed
$10,000,000, unless the Required Lenders specifically approve or consent to
such Acquisition;
(v) the aggregate consideration for such Acquisition and all other
Permitted Acquisitions completed within the preceding 12 month period,
including the principal amount of any assumed Indebtedness and (without
duplication) any Indebtedness of any acquired person or persons, does not
exceed $20,000,000, unless the Required Lenders specifically approve or
consent to such Acquisition; and
(vi) the Borrower delivers to the Administrative Agent, at least five
Business Days prior to the proposed date of such Acquisition, an Officer's
Certificate executed on behalf of the Borrower by an Authorized Officer of
the Borrower demonstrating compliance with the requirements above and which
certifies that the Borrower would, after giving effect to such Acquisition,
be in compliance, on a pro forma basis, with the financial covenants
contained in sections 10.7, 10.8, 10.9 and 10.10 such pro forma ratios
being determined:
(A) as if (x) such Acquisition had been completed at the
beginning of the most recent period of four consecutive fiscal
quarters of the Borrower for which financial information for the
Borrower and the business or person to be acquired, is available, and
(y) any such Indebtedness, or other Indebtedness incurred to finance
such Acquisition, had been outstanding for such period; and
(B) without giving effect to any credit for unobtained or
unrealized gains in connection with such Acquisition, but taking into
account such adjustments to the overhead of such properties and assets
as may reasonably determined and specified by the Borrower to reflect
the overhead generally applicable to similar properties and assets
owned by the Borrower and its Subsidiaries, as and to the extent the
Administrative Agent determines (acting on instructions from the
Required Lenders) such adjustments to be reasonable and appropriate
under the particular circumstances);
provided, that the term Permitted Acquisition specifically excludes any loans,
advances or minority investments otherwise permitted pursuant to section 10.5.
-16-
"Permitted Dispositions" shall mean the sale, transfer or other disposition
or other cessation of all or a portion of the operations of (i) the Borrower's
assets located in Catlettsburg, Kentucky, (ii) the Bodenfelde plant in Lower
Saxony, Germany, or (iii) the Borrower's assets located in Neville Island,
Pennsylvania.
"Permitted Liens" shall mean Liens described in section 10.3.
"person" shall mean any individual, partnership, joint venture, firm,
corporation, limited liability company, association, trust or other enterprise
or any government or political subdivision or any agency, department or
instrumentality thereof.
"Plan" shall mean any multiemployer or single-employer plan as defined in
section 4001 of ERISA, that is maintained or contributed to by (or to which
there is an obligation to contribute by) the Borrower or a Subsidiary of the
Borrower or an ERISA Affiliate, and each such plan for the five year period
immediately following the latest date on which the Borrower, or a Subsidiary of
the Borrower or an ERISA Affiliate maintained, contributed to or had an
obligation to contribute to such plan.
"primary Indebtedness" shall have the meaning provided in the definition of
Guaranty Obligations.
"primary obligor" shall have the meaning provided in the definition of
Guaranty Obligations.
"Prime Rate" shall mean, for any period, a fluctuating interest rate per
annum as shall be in effect from time to time, which rate per annum shall at all
times be equal to the greater of: (i) the rate of interest established by the
Administrative Agent at its principal office, from time to time, as its prime
rate, whether or not publicly announced, which interest rate may or may not be
the lowest rate charged by it for commercial loans or other extensions of
credit; and (ii) the Federal Funds Effective Rate in effect from time to time
plus 1/2 of 1% per annum.
"Prime Rate Loan" shall mean each Loan, denominated in U.S. dollars,
bearing interest at the rate provided in section 2.8(a).
"Prohibited Transaction" shall mean a transaction with respect to a Plan
that is prohibited under section 4975 of the Code or section 406 of ERISA and
not exempt under section 4975 of the Code or section 408 of ERISA.
"Purchase Date" shall have the meaning provided in Section 2.5(b).
"RCRA" shall mean the Resource Conservation and Recovery Act, as the same
may be amended from time to time, 42 U.S.C.(S) 6901 et seq.
"Real Property" of any person shall mean all of the right, title and
interest of such person in and to land, improvements and fixtures, including
Leaseholds.
"Redeemable Stock" shall mean with respect to any person any capital stock
or similar equity interests of such person that: (i) is by its terms subject to
mandatory redemption, in whole or in part, pursuant to a sinking fund, scheduled
redemption or similar provisions, at any time prior to the Maturity Date; or
(ii) otherwise is required to be repurchased or retired on a scheduled date or
dates, upon the occurrence of any event or circumstance, or at the option of the
holder or holders thereof, or otherwise, at any time prior to the Maturity Date,
other than any such repurchase or retirement occasioned by a "change of control"
or similar event.
-17-
"Redenominate," "Redenomination" and "Redenominated" each refers to
redenomination of each Eurodollar Loan comprising the same Borrowing from
Dollars into an Alternative Currency or from an Alternative Currency into
Dollars or another Alternative Currency pursuant to section 2.7.
"Reference Banks" shall mean (i) NCB, and (ii) any other Lender or Lenders
selected as a Reference Bank by the Administrative Agent and the Required
Lenders, provided, that if any such Reference Bank is no longer a Lender, such
other Lender or Lenders as may be selected by the Administrative Agent acting on
instructions from the Required Lenders.
"Regulation D" shall mean Regulation D of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor to all
or a portion thereof establishing reserve requirements.
"Regulation U" shall mean Regulation U of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor to all
or a portion thereof establishing margin requirements.
"Reportable Event" shall mean an event described in section 4043 of ERISA
or the regulations thereunder with respect to a Plan, other than those events as
to which the notice requirement is waived under subsections .22, .23, .24, .25,
..26, .27, .28, .29, .30, .31, .32, .34, .35, .62, .63, .64, .65 or .67 of PBGC
Regulation section 4043.
"Required Lenders" shall mean Non-Defaulting Lenders whose outstanding
General Revolving Loans and Unutilized General Revolving Commitments constitute
more than 51% of the sum of the total outstanding General Revolving Loans and
Unutilized General Revolving Commitments of Non-Defaulting Lenders (provided
that, for purposes hereof, neither the Borrower, nor any of its Affiliates,
shall be included in (i) the Lenders holding such amount of the General
Revolving Loans or having such amount of the Unutilized General Revolving
Commitments, or (ii) determining the aggregate unpaid principal amount of the
General Revolving Loans or Unutilized General Revolving Commitments).
"Revolving Facility Percentage" shall mean, with respect to any Lender and
at any time, its percentage of the Total General Revolving Commitment.
"Sale and Lease-Back Transaction" shall mean any arrangement with any
person providing for the leasing by the Borrower or any Subsidiary of the
Borrower of any property (except for temporary leases for a term, including any
renewal thereof, of not more than one year and except for leases between the
Borrower and a Subsidiary or between Subsidiaries), which property has been or
is to be sold or transferred by the Borrower or such Subsidiary to such person.
"S&P" shall mean Standard & Poor's Ratings Group, a division of McGraw
Hill, Inc., and its successors.
"SEC" shall mean the United States Securities and Exchange Commission.
"SEC Regulation D" shall mean Regulation D as promulgated under the
Securities Act of 1933, as amended, as the same may be in effect from time to
time.
"Section 6.4(b)(ii) Certificate" shall have the meaning provided in
section 6.4(b)(ii).
"SPC" shall have the meaning provided in section 13.4(f).
"Standard Permitted Liens" shall mean the following:
-18-
(i) Liens for taxes not yet delinquent or Liens for taxes being
contested in good faith and by appropriate proceedings for which adequate
reserves (in the good faith judgment of the management of the Borrower)
have been established;
(ii) Liens in respect of property or assets imposed by law that were
incurred in the ordinary course of business, such as carriers',
warehousemen's, materialmen's and mechanics' Liens and other similar Liens
arising in the ordinary course of business, that do not in the aggregate
materially detract from the value of such property or assets or materially
impair the use thereof in the operation of the business of the Borrower or
any Subsidiary;
(iii) Liens arising from judgments, decrees or attachments in
circumstances not constituting an Event of Default under section 11.1(f);
(iv) Liens (other than any Lien imposed by ERISA) incurred or deposits
made in the ordinary course of business in connection with workers'
compensation, unemployment insurance and other types of social security;
and mechanic's Liens, carrier's Liens, and other Liens to secure the
performance of tenders, statutory obligations, contract bids, government
contracts, performance and return-of-money bonds and other similar
obligations, incurred in the ordinary course of business (exclusive of
obligations in respect of the payment for borrowed money), whether pursuant
to statutory requirements, common law or consensual arrangements;
(v) Leases or subleases granted to others not interfering in any
material respect with the business of the Borrower or any of its
Subsidiaries and any interest or title of a lessor under any lease not in
violation of this Agreement;
(vi) easements, rights-of-way, zoning or deed restrictions, minor
defects or irregularities in title and other similar charges or
encumbrances not interfering in any material respect with the ordinary
conduct of the business of the Borrower or any of its Subsidiaries
considered as an entirety; and
(vii) Liens arising from financing statements regarding property
subject to leases not in violation of the requirements of this Agreement,
provided that such Liens are only in respect of the property subject to,
and secure only, the respective lease (and any other lease with the same or
an affiliated lessor).
"Stated Amount" of each Letter of Credit shall mean the maximum available
to be drawn thereunder (regardless of whether any conditions or other
requirements for drawing could then be met).
"Subordinated Indebtedness" shall mean any Indebtedness that has been
subordinated to the Obligations in such manner and to such extent as the
Administrative Agent (acting on instructions from the Required Lenders) may
require.
"Subsidiary" of any person shall mean and include: (i) any corporation more
than 50% of whose stock of any class or classes having by the terms thereof
ordinary voting power to elect a majority of the directors of such corporation
(irrespective of whether or not at the time stock of any class or classes of
such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such person directly or
indirectly through Subsidiaries; and (ii) any partnership, association, joint
venture or other entity in which such person directly or indirectly through
Subsidiaries, has more than a 50% equity interest at the time. Unless otherwise
expressly provided, all references herein to "Subsidiary" shall mean a
Subsidiary of the Borrower.
-19-
"Swing Line Lender" shall have the meaning provided in the introductory
paragraph hereof and shall include any other single Lender to whom the Swing
Line Lender has transferred its entire Swing Line Revolving Commitment and any
Swing Line Revolving Loans.
"Swing Line Participation Amount" shall have the meaning provided in
Section 2.5(b).
"Swing Line Revolving Commitment" shall mean, with respect to the Swing
Line Lender, the amount set forth opposite such Lender's name in Annex I as its
"Swing Line Revolving Commitment" as the same may be reduced from time to time
pursuant to section 5.1, 5.2 and/or 11.2 or adjusted from time to time as a
result of assignments to or from the Swing Line Lender pursuant to section 13.4.
"Swing Line Revolving Facility" shall mean the credit facility evidenced by
the Swing Line Revolving Commitment.
"Swing Line Revolving Loan" shall have the meaning provided in section
2.1(b).
"Swing Line Revolving Note" shall have the meaning provided in section
2.6(a).
"Synthetic Lease" shall mean any lease (i) that is accounted for by the
lessee as an Operating Lease, and (ii) under which the lessee is intended to be
the "owner" of the leased property for Federal income tax purposes.
"Taxes" shall have the meaning provided in Section 6.4(a).
"Testing Period" shall mean for any determination, a single period
consisting of the four consecutive fiscal quarters of the Borrower then last
ended (whether or not such quarters are all within the same fiscal year), except
that if a particular provision of this Agreement indicates that a Testing Period
shall be of a different specified duration, such Testing Period shall consist of
the particular fiscal quarter or quarters of the Borrower then last ended that
are so indicated in such provision.
"Total Commitment" shall mean the sum of the Commitments of the Lenders.
"Total General Revolving Commitment" shall mean the sum of the General
Revolving Commitments of the Lenders as may be increased or decreased pursuant
to Section 2.1(c) or 5.
"Type" shall mean any type of Loan determined with respect to the interest
option applicable thereto, i.e., a Prime Rate Loan, a Eurodollar Loan or a
Eurodollar Market Index Rate Loan.
"UCC" shall mean the Uniform Commercial Code.
"Unfunded Current Liability" of any Plan shall mean the amount, if any, by
which the actuarial present value of the accumulated plan benefits under the
Plan as of the close of its most recent plan year exceeds the fair market value
of the assets allocable thereto, each determined in accordance with Statement of
Financial Accounting Standards No. 87, based upon the actuarial assumptions used
by the Plan's actuary in the most recent annual valuation of the Plan.
"United States" and "U.S." each means United States of America.
"Unpaid Drawing" shall have the meaning specified in Section 3.3(a).
-20-
"Unutilized General Revolving Commitment" for any Lender at any time shall
mean the excess of (i) such Lender's General Revolving Commitment at such time
over (ii) the principal amount of General Revolving Loans made by such Lender
and outstanding at such time.
"Unutilized Swing Line Revolving Commitment" for the Swing Line Lender at
any time shall mean the excess of (i) the Swing Line Lender's Swing Line
Revolving Commitment at such time over (ii) the aggregate principal amount of
Swing Line Revolving Loans made by the Swing Line Lender and outstanding at such
time.
"Unutilized Total General Revolving Commitment" shall mean, at any time,
the excess of (i) the Total General Revolving Commitment at such time over (ii)
the sum of (x) the aggregate principal amount of all General Revolving Loans
then outstanding plus (y) the aggregate Letter of Credit Outstandings at such
time.
"Wholly-Owned Subsidiary" shall mean each Subsidiary of the Borrower at
least 95% of whose capital stock, equity interests and partnership interests,
other than director's qualifying shares or similar interests, are owned directly
or indirectly by the Borrower.
"Written," "written" or "in writing" shall mean any form of written
communication or a communication by means of telex, facsimile transmission,
e-mail electronic transmission, telegraph or cable.
1.2. Computation of Time Periods. In this Agreement in the computation of
periods of time from a specified date to a later specified date, the word "from"
means "from and including" and the words "to" and "until" each means "to but
excluding."
1.3. Accounting Terms. Except as otherwise specifically provided herein,
all terms of an accounting or financial nature shall be construed in accordance
with GAAP, as in effect from time to time; provided that, if the Borrower
notifies the Administrative Agent that the Borrower requests an amendment to any
provision of section 9 or 10 hereof to eliminate the effect of any change
occurring after the Effective Date in GAAP or in the application thereof to such
provision (or if the Administrative Agent notifies the Borrower that the
Required Lenders request an amendment to any such provision hereof for such
purposes), regardless of whether any such notice is given before or after such
change in GAAP or in the application thereof, then such provision shall be
interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been
withdrawn or such provision amended in accordance with the requirements of this
Agreement.
1.4. Terms Generally. The definitions of terms herein shall apply equally
to the singular and plural forms of the terms defined. Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and
neuter forms. The words "include," "includes" and "including" shall be deemed to
be followed by the phrase "without limitation." The word "will" shall be
construed to have the same meaning and effect as the word "shall." Unless the
context requires otherwise: (a) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein); (b) any reference
herein to any person shall be construed to include such person's successors and
assigns; (c) the words "herein," "hereof" and "hereunder," and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof; (d) all references herein to sections, Annexes
and Exhibits shall be construed to refer to sections of, and Annexes and
Exhibits to, this Agreement; and (e) the words "asset" and "property" shall be
construed to have the same meaning and effect and to refer to any and all real
property, tangible and intangible assets and properties, including cash,
securities, accounts and contract rights, and interests in any of the foregoing.
-21-
1.5. Currency Equivalents. For purposes of this Agreement, except as
otherwise specified herein, (i) the equivalent in Dollars of any Alternative
Currency shall be determined by using the quoted spot rate at which the
Administrative Agent offers to exchange Dollars for such Alternative Currency at
its Payment Office at 9:00 A.M. (local time at the Payment Office) two Business
Days prior to the date on which such equivalent is to be determined, (ii) the
equivalent in any Alternative Currency of any other Alternative Currency shall
be determined by using the quoted spot rate at which the Administrative Agent's
Payment Office offers to exchange such Alternative Currency for the equivalent
in Dollars of such other Alternative Currency at such Payment Office at 9:00
A.M. (local time at the Payment Office) two Business Days prior to the date on
which such equivalent is to be determined, and (iii) the equivalent in any
Alternative Currency of Dollars shall be determined by using the quoted spot
rate at which the Administrative Agent's Payment Office offers to exchange such
Alternative Currency for Dollars at the Payment Office at 9:00 A.M. (local time
at the Payment Office) two Business Days prior to the date on which such
equivalent is to be determined; provided, that (A) the equivalent in Dollars of
each Eurodollar Loan made in an Alternative Currency shall be recalculated
hereunder on each date that it shall be necessary (or the Administrative Agent
shall elect) to determine the unused portion of each Lender's Commitment, or any
or all Loan or Loans outstanding on such date; (B) the equivalent in Dollars of
any Unpaid Drawing in respect of any Letter of Credit denominated in an
Alternative Currency shall be determined at the time the drawing under such
Letter of Credit was paid or disbursed by the applicable Letter of Credit
Issuer; (C) for purposes of determining the Letter of Credit Outstandings or the
Unutilized Total Revolving Commitment as contemplated by sections 2.1(a), 3.1(b)
and 6.2, the equivalent in Dollars of the Stated Amount of any Letter of Credit
denominated in an Alternative Currency shall be calculated (x) on the date of
the issuance of the respective Letter of Credit, (y) on the first Business Day
of each calendar month thereafter and (z) in any other case where the same is
required or permitted to be calculated, on such other day as the Administrative
Agent may, in its sole discretion, consider appropriate; and (D) for purposes of
sections 4.2 and 4.3 the equivalent in Dollars of the Stated Amount of any
Letter of Credit denominated in an Alternative Currency shall be calculated on
the first day of each calendar month in the quarterly period in which the
respective payment is due pursuant to said sections.
SECTION 2. AMOUNT AND TERMS OF LOANS.
2.1. Commitments for Loans. Subject to and upon the terms and conditions
herein set forth, each Lender severally agrees to make a loan or loans (each a
"Loan" and, collectively, the "Loans") to the Borrower, which Loans shall be
drawn, to the extent such Lender has a Commitment under a Facility for the
Borrower, under the applicable Facility, as set forth below:
(a) General Revolving Facility. Loans to the Borrower under the General
Revolving Facility (each a "General Revolving Loan" and, collectively, the
"General Revolving Loans"): (i) may be made at any time and from time to time on
and after the Closing Date and prior to the Maturity Date; (ii) shall be made
only in U.S. dollars or an Alternative Currency; (iii) except as otherwise
provided, may, at the option of the Borrower, be incurred and maintained as, or
Converted or Redenominated into, General Revolving Loans that are either Prime
Rate Loans or Eurodollar Loans, in each case denominated in Dollars or an
Alternative Currency, provided that all General Revolving Loans made as part of
the same Borrowing shall, unless otherwise specifically provided herein, consist
of General Revolving Loans of the same Type and currency, and provided, further,
that the aggregate principal amount of Loans denominated in Alternative Currency
shall not exceed $20,000,000 at any time outstanding (the "Alternative Currency
Sublimit"); (iv) may be repaid or prepaid and reborrowed in accordance with the
provisions hereof; (v) may only be made if after giving effect thereto the
Unutilized Total General Revolving Commitment exceeds the outstanding Swing Line
Revolving Loans; and (vi) shall not exceed for any Lender at any time
outstanding the General Revolving Commitment of such Lender at such time.
-22-
(b) Swing Line Revolving Facility. Loans to the Borrower under the Swing
Line Revolving Facility (each a "Swing Line Revolving Loan" and, collectively,
the "Swing Line Revolving Loans"): (i) shall be made only by the Swing Line
Lender; (ii) may be made at any time and from time to time on and after the
Closing Date and prior to the Maturity Date; (iii) shall be made only in U.S.
dollars; (iv) may be incurred as a Prime Rate or a Eurodollar Market Index Rate
Loan; (v) may be repaid or prepaid and reborrowed in accordance with the
provisions hereof; (vi) may only be made if after giving effect thereto the
Unutilized Total General Revolving Commitment exceeds the outstanding Swing Line
Revolving Loans; and (vii) shall not exceed for the Swing Line Lender at any
time outstanding its Swing Line Revolving Commitment at such time.
(c) Increase in General Revolving Commitments.
(i) The Company may, by written notice to the Administrative Agent
from time to time, request that the Total General Revolving Commitment be
increased by an amount not to exceed the Incremental General Revolving
Facility Amount at such time. The Administrative Agent shall deliver a copy
thereof to each Lender with a General Revolving Commitment. Such notice
shall set forth the amount of the requested increase in the Total General
Revolving Commitment (which shall be in minimum increments of $5,000,000
and a minimum amount of $5,000,000 or equal to the remaining Incremental
General Revolving Facility Amount) and the date on which such increase is
requested to become effective (which shall be not less than 10 Business
Days nor more than 60 days after the date of such notice and that, in any
event, must be on or prior to the Maturity Date), and shall offer each
Lender (each such Lender so agreeing being an "Increasing General Revolving
Lender" and each such Lender declining or being deemed to have declined
being a "Non-Increasing General Revolving Lender") or such other banks or
entities (any such bank or other entity referred to in this clause being an
"Augmenting General Revolving Lender") the opportunity to increase its
General Revolving Commitment or to extend additional General Revolving
Commitments. Each Augmenting General Revolving Lender, if not already a
Lender with a General Revolving Commitment hereunder, shall be subject to
the approval of the Administrative Agent (which approval shall not be
unreasonably withheld), and the Company and each Augmenting General
Revolving Lender shall execute all such documentation as the Administrative
Agent shall reasonably specify to evidence its General Revolving Commitment
and/or its status as a Lender with a General Revolving Commitment
hereunder. Any increase in the Total General Revolving Commitment may be
made in an amount that is less than the increase requested by the Company
if the Company is unable to arrange for, or chooses not to arrange for,
Augmenting General Revolving Lenders.
(ii) Each of the parties hereto agrees that the Administrative Agent
may take any and all actions as may be reasonably necessary to ensure that
after giving effect to any increase in the Total General Revolving
Commitment pursuant to this Section 2.1(c), the outstanding General
Revolving Loans (if any) are held by the Lenders with General Revolving
Commitments in accordance with their new General Revolving Facility
Percentages. This may be accomplished at the discretion of the
Administrative Agent: (w) by requiring the outstanding General Revolving
Loans to be prepaid with the proceeds of new Borrowings; (x) by causing
Non-Increasing Revolving Lenders to assign portions of their outstanding
General Revolving Loans to Increasing General Revolving Lenders and
Augmenting General Revolving Lenders; (y) by permitting the Borrowings
outstanding at the time of any increase in the Total General Revolving
Commitment pursuant to this section 2.1(c) to remain outstanding until the
last days of the respective Interest Periods therefor, even though the
Lenders would hold such Borrowings other than in accordance with their new
Revolving Facility Percentages; or (z) by any combination of the foregoing.
Any prepayment or assignment described in this paragraph (ii) shall be
subject to section 2.11 hereof but otherwise without premium or penalty.
-23-
(iii) Notwithstanding the foregoing, no increase in the Total General
Revolving Credit Commitment (or in the General Revolving Commitment of any
Lender) or addition of a new Lender shall become effective under this
section 2.1(c) unless: (x) on the date of such increase, the conditions set
forth in section 7.2 shall be satisfied, and the Administrative Agent shall
have received a certificate to that effect dated such date and executed by
a responsible financial officer of the Company; and (y) the Administrative
Agent shall have received (with sufficient copies for each of the Lenders
with General Revolving Commitments) certificates, legal opinions, board
resolutions and an officer's certificate consistent with those delivered on
the Closing Date under sections 7.1(c), (d), (e) and (f).
(iv) Nothing in this section 2.1(c) shall be deemed to require any
Lender to increase its General Revolving Commitment at any time without the
written consent of such Lender.
2.2. Minimum Borrowing Amounts, etc.; Pro Rata Borrowings. (a) The
aggregate principal amount of each Borrowing by the Borrower shall not be less
than the Minimum Borrowing Amount. More than one Borrowing may be incurred by
the Borrower on any day, provided that: (i) if there are two or more Borrowings
on a single day under the General Revolving Facility that consist of Eurodollar
Loans, each such Borrowing shall have a different initial Interest Period; (ii)
only one Borrowing under the Swing Line Revolving Facility may be made on any
single day; and (iii) at no time shall there be more than an aggregate of 8
Borrowings under the General Revolving Facility and the Swing Line Revolving
Facility.
(b) All Borrowings under a Facility shall be made by the Lenders having
Commitments under such Facility pro rata on the basis of their respective
Commitments under such Facility. It is understood that no Lender shall be
responsible for any default by any other Lender in its obligation to make Loans
hereunder and that each Lender shall be obligated to make the Loans provided to
be made by it hereunder, regardless of the failure of any other Lender to
fulfill its Commitment hereunder.
2.3. Procedures for Borrowing. (a) Notice of Borrowing. Whenever the
Borrower desires to incur Loans, it shall give the Administrative Agent at its
Notice Office:
(A) Borrowings of Prime Rate Loans under the General Revolving
Facility: in the case of any Borrowing under the General Revolving Facility
of Prime Rate Loans to be made hereunder, prior to 12:00 noon (local time
at its Notice Office), at least one Business Day's prior written or
telephonic notice thereof (in the case of telephonic notice, promptly
confirmed in writing); or
(B) Borrowings of Eurodollar Loans under the General Revolving
Facility Denominated in Dollars: in the case of any Borrowing under the
General Revolving Facility of Eurodollar Loans denominated in Dollars to be
made hereunder, prior to 12:00 noon (local time at its Notice Office), at
least three Business Days' prior written or telephonic notice thereof (in
the case of telephonic notice, promptly confirmed in writing); or
(C) Borrowings of Eurodollar Loans under the General Revolving
Facility Denominated in an Alternative Currency: in the case of any
Borrowing under the General Revolving Facility of Eurodollar Loans
denominated in an Alternative Currency to be made hereunder, prior to 12:00
noon (local time at its Notice Office), at least five Business Days' prior
written or telephonic notice thereof (in the case of telephonic notice,
promptly confirmed in writing); or
(D) Borrowings under the Swing Line Revolving Facility: in the case of
any Borrowing under the Swing Line Revolving Facility of a Prime Rate Loan
or a Eurodollar Market
-24-
Index Rate Loan, prior to 1:00 P.M. (local time at its Notice Office), on
the proposed date of Borrowing, written or telephonic notice thereof (in
the case of telephonic notice, promptly confirmed in writing if so
requested by the Administrative Agent).
Each such notice (each such notice, a "Notice of Borrowing") shall (in the case
of Swing Line Revolving Loans, if requested by the Administrative Agent to be
confirmed in writing), be substantially in the form of Exhibit B-1, and in any
event shall be irrevocable and shall specify: (i) the Facility under which the
Borrowing is to be incurred; (ii) the aggregate principal amount of the Loans to
be made pursuant to such Borrowing; (iii) the date of the Borrowing (which shall
be a Business Day); (iv) whether the Borrowing shall consist of Prime Rate
Loans, Eurodollar Loans or Eurodollar Market Index Rate Loans; and (v) if the
requested Borrowing consists of Eurodollar Loans, (A) the currency, if other
than Dollars, in which such Loans are requested and (B) the Interest Period to
be initially applicable thereto. If the Borrower fails to specify in a Notice of
Borrowing the Interest Period and currency for any Eurodollar Loans, such
Interest Period shall be deemed to be one month and such currency Dollars. The
Administrative Agent shall promptly give each Lender that has a Commitment under
any applicable Facility written notice (or telephonic notice promptly confirmed
in writing) of each proposed Borrowing under the applicable Facility, of such
Lender's proportionate share thereof and of the other matters covered by the
Notice of Borrowing relating thereto.
(b) Borrowings of Eurodollar Loans Denominated in an Alternative Currency.
In the case of a proposed Borrowing comprised of Loans that are Eurodollar Loans
denominated in an Alternative Currency, the obligation of each affected Lender
to make its Eurodollar Loan in the requested Alternative Currency as part of
such Borrowing is subject to:
(A) if such requested Alternative Currency is an Alternative Currency
described in clause (i) of the definition of the term Alternative Currency,
the confirmation by the Administrative Agent to the Borrower not later than
the fourth Business Day before the requested date of such Borrowing that
such Alternative Currency is readily and freely transferable and
convertible into Dollars, or
(B) if such requested Alternative Currency is not an Alternative
Currency described in clause (i) of the definition of the term Alternative
Currency, the confirmation by such Lender to the Administrative Agent not
later than the fourth Business Day before the requested date of such
Borrowing that such Alternative Currency is acceptable to such Lender,
which confirmation shall be notified immediately by the Administrative
Agent to the Borrower.
If the Administrative Agent shall not have provided the confirmation referred to
in clause (A) above, or any affected Lender shall not have so provided to the
Administrative Agent the confirmation referred to in clause (B) above, the
Administrative Agent shall promptly notify the Borrower and each affected Lender
that a Lender has not provided any such confirmation referred to in such clause
(B), whereupon the Borrower may, by notice to the Administrative Agent not later
than the third Business Day before the requested date of such Borrowing,
withdraw the Notice of Borrowing relating to such requested Borrowing. If the
Borrower does so withdraw such Notice of Borrowing, the Borrowing requested in
such Notice of Borrowing shall not occur and the Administrative Agent shall
promptly so notify each affected Lender. If the Borrower does not so withdraw
such Notice of Borrowing, the Administrative Agent shall promptly so notify each
affected Lender and such Notice of Borrowing shall be deemed to be a Notice of
Borrowing that requests a Borrowing of Loans comprised of Eurodollar Loans in an
aggregate amount in Dollars equivalent, on the date the Administrative Agent so
notifies each affected Lender, to the amount of the originally requested
Borrowing in an Alternative Currency; and in such notice by the Administrative
Agent to each affected Lender the Administrative Agent shall state such
aggregate equivalent amount of such Borrowing in Dollars and such Lender's
ratable portion of such Borrowing.
-25-
(c) Actions by Administrative Agent on Telephonic Notice. Without in any
way limiting the obligation of the Borrower to confirm in writing any telephonic
notice permitted to be given hereunder, the Administrative Agent may act prior
to receipt of written confirmation without liability upon the basis of such
telephonic notice believed by the Administrative Agent in good faith to be from
an Authorized Officer of the Borrower entitled to give telephonic notices under
this Agreement on behalf of the Borrower. In each such case, the Administrative
Agent's record of the terms of such telephonic notice shall be conclusive absent
manifest error.
2.4. Disbursement of Funds. (a) No later than 2:00 P.M. (local time at the
Payment Office) on the date specified in each Notice of Borrowing, each Lender
with a Commitment under the Facility under which any Borrowing pursuant to such
Notice of Borrowing is to be made will make available its pro rata share, if
any, of each Borrowing under such Facility requested to be made on such date in
the manner provided below. All amounts shall be made available to the
Administrative Agent in U.S. dollars or the applicable Alternative Currency and
immediately available funds at the Payment Office and the Administrative Agent
promptly will make available to the Borrower by depositing to its account at the
Payment Office the aggregate of the amounts so made available in the type of
funds received. Unless the Administrative Agent shall have been notified by any
Lender prior to the date of Borrowing that such Lender does not intend to make
available to the Administrative Agent its portion of the Borrowing or Borrowings
to be made on such date, the Administrative Agent may assume that such Lender
has made such amount available to the Administrative Agent on such date of
Borrowing, and the Administrative Agent, in reliance upon such assumption, may
(in its sole discretion and without any obligation to do so) make available to
the Borrower a corresponding amount. If such corresponding amount is not in fact
made available to the Administrative Agent by such Lender and the Administrative
Agent has made available same to the Borrower, the Administrative Agent shall be
entitled to recover such corresponding amount from such Lender. If such Lender
does not pay such corresponding amount forthwith upon the Administrative Agent's
demand therefor, the Administrative Agent shall promptly notify the Borrower,
and the Borrower shall immediately pay such corresponding amount to the
Administrative Agent. The Administrative Agent shall also be entitled to recover
from such Lender or the Borrower, as the case may be, interest on such
corresponding amount in respect of each day from the date such corresponding
amount was made available by the Administrative Agent to the Borrower to the
date such corresponding amount is recovered by the Administrative Agent, at a
rate per annum equal to (x) if paid by such Lender, the overnight Federal Funds
Effective Rate, in the case of any Loan denominated in Dollars, or at the
weighted average overnight or weekend borrowing rate for immediately available
and freely transferrable funds in the applicable Alternative Currency that is
offered to the Administrative Agent in the international markets, in the case of
any Loan denominated in an Alternative Currency, or (y) if paid by the Borrower,
the then applicable rate of interest, calculated in accordance with section 2.8,
for the respective Loans (but without any requirement to pay any amounts in
respect thereof pursuant to section 2.11).
(b) Nothing herein and no subsequent termination of the Commitments
pursuant to section 5.1 or 5.2 shall be deemed to relieve any Lender from its
obligation to fulfill its commitments hereunder and in existence from time to
time or to prejudice any rights that the Borrower may have against any Lender as
a result of any default by such Lender hereunder.
2.5. Refunding of, or Participation in, Swing Line Revolving Loans. (a) If
any Event of Default exists, the Swing Line Lender may, in its sole and absolute
discretion, direct that the Swing Line Revolving Loans owing to it be refunded
by delivering a notice to such effect to the Administrative Agent, specifying
the aggregate principal amount thereof (a "Notice of Swing Line Refunding").
Promptly upon receipt of a Notice of Swing Line Refunding, the Administrative
Agent shall give notice of the contents thereof to the Lenders with General
Revolving Commitments and, unless an Event of Default specified in section
11.1(g) in respect of the Borrower has occurred, also to the Borrower. Each such
Notice of Swing Line Refunding shall be deemed to constitute delivery by the
Borrower of a Notice
-26-
of Borrowing requesting General Revolving Loans consisting of Prime Rate Loans
in the amount of the Swing Line Revolving Loans to which it relates. Each Lender
with a General Revolving Commitment (including the Swing Line Lender, in its
capacity as a Lender) hereby unconditionally agrees (notwithstanding that any of
the conditions specified in section 7.2 hereof or elsewhere in this Agreement
shall not have been satisfied, but subject to the provisions of paragraph (b)
below) to make a General Revolving Loan to the Borrower in an amount equal to
such Lender's General Revolving Facility Percentage of the aggregate amount of
the Swing Line Revolving Loans to which such Notice of Swing Line Refunding
relates. Each such Lender shall make the amount of such General Revolving Loan
available to the Administrative Agent in immediately available funds at the
Payment Office not later than 2:00 P.M. (local time at the Payment Office), if
such notice is received by such Lender prior to 11:00 A.M. (local time at its
Domestic Lending Office), or not later than 2:00 P.M. (local time at the Payment
Office) on the next Business Day, if such notice is received by such Lender
after such time. The proceeds of such General Revolving Loans shall be made
immediately available to the Swing Line Lender and applied by it to repay the
principal amount of the Swing Line Revolving Loans to which such Notice of Swing
Line Refunding related. The Borrower irrevocably and unconditionally agrees
that, notwithstanding anything to the contrary contained in this Agreement,
General Revolving Loans made as herein provided in response to a Notice of Swing
Line Refunding shall constitute General Revolving Loans hereunder consisting of
Prime Rate Loans.
(b) If prior to the time a General Revolving Loan would otherwise have been
made as provided above as a consequence of a Notice of Swing Line Refunding, any
of the events specified in section 11.1(g) shall have occurred in respect of the
Borrower or one or more of the Lenders with General Revolving Commitments shall
determine that it is legally prohibited from making a General Revolving Loan
under such circumstances, each Lender (other than the Swing Line Lender), or
each Lender (other than the Swing Line Lender) so prohibited, as the case may
be, shall, on the date such General Revolving Loan would have been made by it
(the "Purchase Date"), purchase an undivided participating interest in the
outstanding Swing Line Revolving Loans to which such Notice of Swing Line
Refunding related, in an amount (the "Swing Line Participation Amount") equal to
such Lender's General Revolving Facility Percentage of such Swing Line Revolving
Loans. On the Purchase Date, each such Lender or each such Lender so prohibited,
as the case may be, shall pay to the Swing Line Lender, in immediately available
funds, such Lender's Swing Line Participation Amount, and promptly upon receipt
thereof the Swing Line Lender shall, if requested by such other Lender, deliver
to such Lender a participation certificate, dated the date of the Swing Line
Lender's receipt of the funds from, and evidencing such Lender's participating
interest in such Swing Line Revolving Loans and its Swing Line Participation
Amount in respect thereof. If any amount required to be paid by a Lender to the
Swing Line Lender pursuant to the above provisions in respect of any Swing Line
Participation Amount is not paid on the date such payment is due, such Lender
shall pay to the Swing Line Lender on demand interest on the amount not so paid
at the overnight Federal Funds Effective Rate from the due date until such
amount is paid in full.
(c) Whenever, at any time after the Swing Line Lender has received from any
other Lender such Lender's Swing Line Participation Amount, the Swing Line
Lender receives any payment from or on behalf of the Borrower on account of the
related Swing Line Revolving Loans, the Swing Line Lender will promptly
distribute to such Lender its General Revolving Facility Percentage of such
payment on account of its Swing Line Participation Amount (appropriately
adjusted, in the case of interest payments, to reflect the period of time during
which such Lender's participating interest was outstanding and funded);
provided, however, that in the event such payment received by the Swing Line
Lender is required to be returned, such Lender will return to the Swing Line
Lender any portion thereof previously distributed to it by the Swing Line
Lender.
(d) Each Lender's obligation to make General Revolving Loans and/or to
purchase participations in connection with a Notice of Swing Line Refunding
(that shall in all events be within
-27-
such Lender's Unutilized General Revolving Commitment, taking into account all
outstanding participations in connection with Swing Line Refundings) shall be
subject to the conditions that:
(i) such Lender shall have received a Notice of Swing Line Refunding
complying with the provisions hereof, and
(ii) at the time the Swing Line Revolving Loans that are the subject
of such Notice of Swing Line Refunding were made, the Swing Line Lender had
no actual written notice from another Lender that an Event of Default had
occurred and was continuing,
but otherwise shall be absolute and unconditional, shall be solely for the
benefit of the Swing Line Lender, and shall not be affected by any circumstance,
including, without limitation, (A) any set-off, counterclaim, recoupment,
defense or other right that such Lender may have against any other Lender, the
Borrower, or any other person, may have against any Lender or other person, as
the case may be, for any reason whatsoever; (B) the occurrence or continuance of
a Default or Event of Default; (C) any event or circumstance involving a
Material Adverse Effect upon the Borrower; (D) any breach of any Credit Document
by any party thereto; or (E) any other circumstance, happening or event, whether
or not similar to any of the foregoing.
2.6. Notes and Loan Accounts. (a) Forms of Notes. The Borrower's obligation
to pay the principal of, and interest on, the Loans made to it by each Lender
shall be evidenced: (i) if General Revolving Loans, by a promissory note
substantially in the form of Exhibit A-1 with blanks appropriately completed in
conformity herewith (each a "General Revolving Note" and, collectively, the
"General Revolving Notes"); and (ii) if Swing Line Revolving Loans, by a
promissory note substantially in the form of Exhibit A-2 with blanks
appropriately completed in conformity herewith (the "Swing Line Revolving
Note").
(b) General Revolving Notes. The General Revolving Note issued to a Lender
with a General Revolving Commitment shall: (i) be executed by the Borrower; (ii)
be payable to the order of such Lender and be dated on or prior to the date the
first Loan evidenced thereby is made; (iii) be in a stated principal amount
equal to the General Revolving Commitment of such Lender and be payable in the
principal amount of General Revolving Loans evidenced thereby; (iv) mature on
the Maturity Date; (v) bear interest as provided in section 2.8 in respect of
the Prime Rate Loans and Eurodollar Loans, as the case may be, evidenced
thereby; (vi) be subject to mandatory prepayment as provided in section 6.2; and
(vii) be entitled to the benefits of this Agreement and the other Credit
Documents.
(c) Swing Line Revolving Note. The Swing Line Revolving Note issued to the
Swing Line Lender shall: (i) be executed by the Borrower; (ii) be payable to the
order of such Lender and be dated on or prior to the date the first Loan
evidenced thereby is made; (iii) be in a stated principal amount equal to the
Swing Line Revolving Commitment of such Lender and be payable in the principal
amount of Swing Line Revolving Loans evidenced thereby; (iv) mature as to any
Swing Line Revolving Loan no later than the Maturity Date; (v) bear interest as
provided in section 2.8 in respect of Prime Rate Loans or Eurodollar Market
Index Rate Loans, as the case may be; (vi) be subject to mandatory prepayment as
provided in section 6.2; and (vii) be entitled to the benefits of this Agreement
and the other Credit Documents.
(d) Loan Accounts of Lenders. Each Lender shall maintain in accordance with
its usual practice an account or accounts evidencing the indebtedness of the
Borrower to such Lender resulting from each Loan made by such Lender, including
the amounts of principal and interest payable and paid to such Lender from time
to time hereunder.
-28-
(e) Loan Accounts of Administrative Agent. The Administrative Agent shall
maintain accounts in which it shall record: (i) the amount of each Loan made
hereunder, the Type thereof, the particular Facility under which such Loan was
made, and the Interest Period or maturity date and applicable interest rate if
such Loan is a Eurodollar Loan; (ii) the amount of any principal due and payable
or to become due and payable from the Borrower to each Lender hereunder; and
(iii) the amount of any sum received by the Administrative Agent hereunder for
the account of the Lenders and each Lender's share thereof.
(f) Effect of Loan Accounts, etc. The entries made in the accounts
maintained pursuant to section 2.6(d) and (e) shall be prima facie evidence of
the existence and amounts and amounts of the obligations recorded therein;
provided, that the failure of any Lender or the Administrative Agent to maintain
such accounts or any error therein shall not in any manner affect the obligation
of the Borrower to repay or prepay the Loans in accordance with the terms of
this Agreement.
(g) Endorsements of Amounts on Notes Prior to Transfer. Each Lender will,
prior to any transfer of any of the Notes issued to it by the Borrower, endorse
on the reverse side thereof or the grid attached thereto the outstanding
principal amount of Loans evidenced thereby. Failure to make any such notation
or any error in any such notation shall not affect the Borrower's obligations in
respect of such Loans.
2.7. Voluntary Conversions of Dollar Denominated Loans; Redenomination of
Loans. (a) The Borrower shall have the option to Convert on any Business Day all
or a portion at least equal to the applicable Minimum Borrowing Amount of the
outstanding principal amount of its General Revolving Loans denominated in
Dollars of one Type owing by it into a Borrowing or Borrowings pursuant to the
General Revolving Facility of another Type of Loans denominated in Dollars that
can be made pursuant to such Facility, provided that:
(i) no Conversion may be made with respect to any Swing Line Revolving
Loans;
(ii) no partial Conversion of a Borrowing of Eurodollar Loans shall
reduce the outstanding principal amount of the Eurodollar Loans made
pursuant to such Borrowing to less than the Minimum Borrowing Amount
applicable thereto;
(iii) any Conversion of Eurodollar Loans into Prime Rate Loans shall
be made on, and only on, the last day of an Interest Period for such
Eurodollar Loans;
(iv) Prime Rate Loans may only be Converted into Eurodollar Loans if
no Default under section 11.1(a) or Event of Default is in existence on the
date of the Conversion unless the Required Lenders otherwise agree;
(v) Prime Rate Loans may not be Converted into Eurodollar Loans during
any period when such Conversion is not permitted under section 2.10; and
(vi) Borrowings of Eurodollar Loans resulting from this section 2.7
shall conform to the requirements of section 2.2(a).
Each such Conversion shall be effected by the Borrower giving the Administrative
Agent at its Notice Office, prior to 12:00 noon (local time at such Notice
Office), at least three Business Days', in the case of Conversion into a
Eurodollar Loans (or prior to 12:00 noon (local time at such Notice Office) same
Business Day's, in the case of a Conversion into Prime Rate Loans), prior
written notice (or telephonic notice promptly confirmed in writing if so
requested by the Administrative Agent) (each a "Notice of Conversion"),
substantially in the form of Exhibit B-2, specifying the Loans to be so
Converted, the Type
-29-
of Loans to be Converted into and, if to be Converted into a Borrowing of
Eurodollar Loans, the Interest Period to be initially applicable thereto. The
Administrative Agent shall give each Lender prompt notice of any such proposed
Conversion affecting any of its Loans. For the avoidance of doubt, the
prepayment or repayment of any General Revolving Loans out of the proceeds of
other General Revolving Loans by the Borrower is not considered a Conversion of
General Revolving Loans into other General Revolving Loans.
(b) The Borrower may, upon notice given to the Administrative Agent at
least five Business Days prior to the date of the proposed Redenomination,
request that all Loans comprising the same Borrowing, or a portion of such Loans
at least equal to the applicable Minimum Borrowing Amount, by the Borrower be
Redenominated from Dollars into an Alternative Currency or from an Alternative
Currency into Dollars or another Alternative Currency; provided, however, that
after giving effect to such Redenomination, there shall be no more than an
aggregate of 8 Borrowings under the General Revolving Facility and the Swingline
Facility; and provided, further, that any Redenomination of Eurodollar Loans
shall be made on, and only on, the last day of an Interest Period for such
Loans; and provided, still further, that no Redenomination shall be made that
would cause any Prime Rate Loans to be denominated in any currency other than
Dollars. Each such notice of request of a Redenomination (a "Notice of
Redenomination") shall be by telecopier, telex or cable (confirmed immediately
in writing if so requested by the Administrative Agent), in substantially the
form of Exhibit B-3 hereto, specifying: (i) the Loans comprising the Borrowing
to be Redenominated; (ii) the date of the proposed Redenomination (which shall
be a Business Day); (iii) the currency into which such Loans are to be
Redenominated; and (iv) if such Loans as so Redenominated are to be Eurodollar
Loans, the duration of the Interest Period for such Loans upon being so
Redenominated. The Administrative Agent shall promptly notify each affected
Lender of any such requested Redenomination. In the case of a Notice of
Redenomination that requests a Redenomination of Loans into an Alternative
Currency not described in clause (i) of the definition of the term Alternative
Currency, such Redenomination is subject to the confirmation by each Lender to
the Administrative Agent, not later than the third Business Day before the
requested date of such Redenomination that such Lender agrees to such
Redenomination, and the Administrative Agent shall promptly notify the Borrower
of such confirmation. If any affected Lender shall not have so provided to the
Administrative Agent such confirmation, the requested Redenomination will not
occur, and the Administrative Agent shall promptly notify the Borrower and each
affected Lender that a Lender has not provided such confirmation and that the
requested Redenomination will not occur. If each affected Lender shall have so
provided to the Administrative Agent such confirmation or if such Notice of
Redenomination requests a Redenomination of Loans into Dollars, each Loan so
requested to be Redenominated will be Redenominated, on the date specified
therefor in such Notice of Redenomination, into an equivalent amount thereof in
the currency requested in such Notice of Redenomination, such equivalent amount
to be determined on such date by the Administrative Agent in accordance with
section 1.5, and in the case of any such Loan being so Redenominated that will
be a Eurodollar Loan, such Eurodollar Loan will have an initial Interest Period
as requested in such Notice of Redenomination.
2.8. Interest. (a) Interest Rate for Prime Rate Loans. During such periods
as a General Revolving Loan or a Swing Line Revolving Loan is a Prime Rate Loan,
the unpaid principal amount thereof shall bear interest at a fluctuating rate
per annum that shall at all times be equal to the Prime Rate in effect from time
to time plus the Applicable Prime Rate Margin (as defined below) in effect from
time to time.
(b) Interest Rate for Eurodollar Loans. During such periods as a General
Revolving Loan is a Eurodollar Loan, the unpaid principal amount thereof shall
bear interest at a rate per annum that shall at all times during any Interest
Period applicable thereto be the Applicable Eurodollar Margin (as defined below)
for such Eurodollar Loan plus the relevant Eurodollar Rate for such Interest
Period.
-30-
(c) Interest Rate for Eurodollar Market Index Rate Loans. During such
periods as a Swing Line Revolving Loan is a Eurodollar Market Index Rate Loan,
the unpaid principal amount thereof shall bear interest at a fluctuating rate
that shall at all times be equal to the Applicable Eurodollar Rate Margin (as
defined below) plus the Eurodollar Market Index Rate plus 50 basis points.
(d) Default Interest. Notwithstanding the above provisions, if an Event of
Default is in existence, all outstanding amounts of principal and, to the extent
permitted by law, all overdue interest, in respect of each Loan shall bear
interest, payable on demand, at a fluctuating rate per annum equal to 2% per
annum above the interest rate that would be applicable under section 2.8(a) to
Prime Rate Loans in effect from time to time. If any amount (other than the
principal of and interest on the Loans) payable by the Borrower under the Credit
Documents is not paid when due, all amounts outstanding shall bear interest,
payable on demand, at a fluctuating rate per annum equal 2% per annum above the
interest rate that would be applicable under section 2.8(a) to Prime Rate Loans
in effect from time to time.
(e) Accrual and Payment of Interest. Interest shall accrue from and
including the date of any Borrowing to but excluding the date of any prepayment
or repayment thereof and shall be payable:
(i) in the case of any Swing Line Revolving Loan, (A) at the maturity
date thereof, (B) on the last Business Day of each month, (C) on any
prepayment (on the amount prepaid), and (D) after maturity (whether by
acceleration or otherwise), on demand; and
(ii) in the case of any General Revolving Loan, (A) that is a Prime
Rate Loan, monthly in arrears on the last Business Day of each calendar
month, (B) that is a Eurodollar Loan, on the last day of each Interest
Period applicable thereto and, in the case of an Interest Period in excess
of three months, on the dates that are successively three months after the
commencement of such Interest Period, and (C) on any repayment, prepayment
or Conversion (on the amount repaid, prepaid or Converted), at maturity
(whether by acceleration or otherwise) and, after such maturity, on demand.
(f) Computations of Interest. All computations of interest hereunder shall
be made in accordance with section 13.7(b).
(g) Information as to Interest Rates. The Administrative Agent upon
determining the interest rate for any Borrowing shall promptly notify the
Borrower and the affected Lenders thereof. If the Administrative Agent is unable
to determine the Eurodollar Rate for any Borrowing of Eurodollar Loans or the
Eurodollar Market Index Rate for any Borrowing of Eurodollar Market Index Rate
Loans by reference to the Telerate screen or other information provided by a
service organization referred to in clause (i) of the definition of the term
Eurodollar Rate, then each Reference Bank agrees to furnish the Administrative
Agent timely information for the purpose of determining the Eurodollar Rate for
any such Borrowing. If any one or more of the Reference Banks shall not timely
furnish such information, the Administrative Agent shall determine the
Eurodollar Rate on the basis of timely information furnished by the remaining
Reference Banks.
(h) Interest Margins. As used herein, the term "Applicable Prime Rate
Margin," as applied to any Loan that is a Prime Rate Loan, and the term
"Applicable Eurodollar Margin," as applied to any Loan that is a Eurodollar
Loan, means the particular rate per annum determined by the Administrative Agent
in accordance with the Pricing Grid Table that appears below, based on the
Borrower's ratio of Consolidated Total Debt to Consolidated EBITDA and such
Pricing Grid Table, and the following provisions:
-31-
(i) Initially, until changed hereunder in accordance with the
following provisions, the Applicable Prime Rate Margin will be zero basis
points per annum and the Applicable Eurodollar Margin for General Revolving
Loans will be 140 basis points per annum.
(ii) Commencing with the fiscal quarter of the Borrower ended on or
nearest to September 30, 2003, and continuing with each fiscal quarter
thereafter, the Administrative Agent will determine the Applicable Prime
Rate Margin for any Prime Rate Loan and the Applicable Eurodollar Margin
for any Eurodollar Loan or Eurodollar Market Index Rate Loan in accordance
with the Pricing Grid Table, based on the Borrower's ratio of (x)
Consolidated Total Debt as of the end of the fiscal quarter, to (y)
Consolidated EBITDA for the Testing Period ended on the last day of the
fiscal quarter, and identified in such Pricing Grid Table. Changes in the
Applicable Prime Rate Margin and the Applicable Eurodollar Margin based
upon changes in such ratio shall become effective on the first day of the
month following the receipt by the Administrative Agent pursuant to section
9.1(a) or (b) of the financial statements of the Borrower, accompanied by
the certificate and calculations referred to in section 9.1(c),
demonstrating the computation of such ratio, based upon the ratio in effect
at the end of the applicable period covered (in whole or in part) by such
financial statements.
(iii) Notwithstanding the above provisions, during any period when (A)
the Borrower has failed to timely deliver its consolidated financial
statements referred to in section 9.1(a) or (b), accompanied by the
certificate and calculations referred to in section 9.1(c), or (B) an Event
of Default has occurred and is continuing, the Applicable Prime Rate Margin
and the Applicable Eurodollar Margin shall each be the highest rate per
annum indicated therefor in the Pricing Grid Table, regardless of the
Borrower's ratio of Consolidated Total Debt to Consolidated EBITDA at such
time.
(iv) Any changes in the Applicable Prime Rate Margin or the Applicable
Eurodollar Margin shall be determined by the Administrative Agent in
accordance with the above provisions and the Administrative Agent will
promptly provide notice of such determinations to the Borrower and the
Lenders. Any such determination by the Administrative Agent pursuant to
this section 2.8(h) shall be conclusive and binding absent manifest error.
PRICING GRID TABLE
(expressed in basis points)
--------------------------------------------------------------------------------
Ratio of
Consolidated Total Debt Applicable Applicable
To Eurodollar Applicable Prime Facility Fee
Consolidated EBITDA Margin Rate Margin Rate
--------------------------------------------------------------------------------
**** 2.50 to 1.00 140.00 -0- 35.00
--------------------------------------------------------------------------------
**** 2.00 to 1.00 and * 2.50 to 1.00 120.00 -0- 30.00
--------------------------------------------------------------------------------
**** 1.50 to 1.00 and * 2.00 to 1.00 100.00 -0- 25.00
--------------------------------------------------------------------------------
* 1.50 to 1.00 80.00 -0- 20.00
--------------------------------------------------------------------------------
**** means Greater than or equal to
* means lesss than
2.9. Selection and Continuation of Interest Periods. (a) The Borrower shall
have the right
-32-
(x) at the time it gives a Notice of Borrowing or Notice of Conversion
in respect of the making of, or a Conversion into, General Revolving Loans
consisting of Eurodollar Loans, to select in such Notice the Interest
Period to be applicable to such Borrowing; and
(y) prior to 11:00 A.M. (local time at the Notice Office) on the third
Business Day prior to the expiration of an Interest Period applicable to a
Borrowing of General Revolving Loans consisting of Eurodollar Loans, to
elect by giving the Administrative Agent written or telephonic notice (in
the case of telephonic notice, promptly confirmed in writing if so
requested by the Administrative Agent) to Continue all or the Minimum
Borrowing Amount of the principal amount of such Loans as one or more
Borrowings of Eurodollar Loans and to select the Interest Period to be
applicable to any such Borrowing (any such notice, a "Notice of
Continuation"),
which Interest Period shall, at the option of the Borrower, be a one, two, three
or six month period; provided, that notwithstanding anything to the contrary
contained above, the Borrower's right to select an Interest Period or to effect
any Continuation shall be subject to the applicable provisions of section 2.10
and to the following:
(i) the initial Interest Period for any Borrowing of Eurodollar Loans
shall commence on the date of such Borrowing (the date of a Borrowing
resulting from a Conversion or Continuation shall be the date of such
Conversion or Continuation) and each Interest Period occurring thereafter
in respect of such Borrowing shall commence on the day on which the next
preceding Interest Period expires;
(ii) if any Interest Period begins on a day for which there is no
numerically corresponding day in the calendar month at the end of such
Interest Period, such Interest Period shall end on the last Business Day of
such calendar month;
(iii) if any Interest Period would otherwise expire on a day that is
not a Business Day, such Interest Period shall expire on the next
succeeding Business Day, provided that if any Interest Period would
otherwise expire on a day that is not a Business Day but is a day of the
month after which no further Business Day occurs in such month, such
Interest Period shall expire on the next preceding Business Day;
(iv) no Interest Period for any Eurodollar Loan may be selected that
would end after the Maturity Date;
(v) each Borrowing of Eurodollar Loans resulting from any Continuation
shall be in at least the Minimum Borrowing Amount applicable thereto; and
(vi) no Interest Period may be elected at any time when a Default
under section 11.1(a) or an Event of Default is then in existence unless
the Required Lenders otherwise agree.
(b) If upon the expiration of any Interest Period the Borrower has failed
to (or may not) elect a new Interest Period to be applicable to the respective
Borrowing of Eurodollar Loans as provided above, in the case of any such
Eurodollar Loans that are denominated in Dollars, the Borrower shall be deemed
to have elected to Convert such Borrowing to Prime Rate Loans effective as of
the expiration date of such current Interest Period, and in the case of any such
Eurodollar Loans that are denominated in an Alternative Currency, the Borrower
shall be deemed to have elected effective as of the expiration date of such
current Interest Period to Redenominate such Loans from the applicable
Alternative Currency into an equivalent amount thereof in Dollars, such
equivalent amount to be determined on such date by the
-33-
Administrative Agent in accordance with section 1.5, and to treat such Loans as
so Redenominated as Prime Rate Loans.
2.10. Increased Costs, Illegality, etc. (a) In the event that (x) in the
case of clause (i) below, the Administrative Agent or (y) in the case of clauses
(ii) and (iii) below, any Lender, shall have determined on a reasonable basis
(which determination shall, absent manifest error, be final and conclusive and
binding upon all parties hereto):
(i) on any date for determining the Eurodollar Rate for Eurodollar
Loans denominated in Dollars or in an Alternative Currency for any Interest
Period, or for Eurodollar Market Index Rate Loans, as applicable, that, by
reason of any changes arising after the Effective Date affecting the
interbank Eurodollar market, adequate and fair means do not exist for
ascertaining the applicable interest rate on the basis provided for in the
definition of Eurodollar Rate; or
(ii) at any time, that such Lender shall incur increased costs or
reductions in the amounts received or receivable hereunder in an amount
that such Lender reasonably deems material with respect to any Eurodollar
Loans (other than any increased cost or reduction in the amount received or
receivable resulting from the imposition of or a change in the rate of
taxes or similar charges) because of (x) any change since the Effective
Date in any applicable law, governmental rule, regulation, guideline, order
or request (whether or not having the force of law), or in the
interpretation or administration thereof and including the introduction of
any new law or governmental rule, regulation, guideline, order or request
(such as, for example, but not limited to, a change in official reserve
requirements, but, in all events, excluding reserves includable in the
Eurodollar Rate pursuant to the definition thereof) and/or (y) other
circumstances adversely affecting the interbank Eurodollar market or the
position of such Lender in such market; or
(iii) at any time, that the making or continuance of any Eurodollar
Loan denominated in Dollars or in an Alternative Currency has become
unlawful by compliance by such Lender in good faith with any change since
the Effective Date in any law, governmental rule, regulation, guideline or
order, or the interpretation or application thereof, or would conflict with
any thereof not having the force of law but with which such Lender
customarily complies or has become impracticable as a result of a
contingency occurring after the Effective Date that materially adversely
affects the interbank Eurodollar market;
then, and in any such event, such Lender (or the Administrative Agent in the
case of clause (i) above) shall (x) on or promptly following such date or time
and (y) within 10 Business Days of the date on which such event no longer exists
give notice (by telephone confirmed in writing) to the Borrower and to the
Administrative Agent of such determination (which notice the Administrative
Agent shall promptly transmit to each of the other applicable Lenders).
Thereafter (x) in the case of clause (i) above, Eurodollar Loans, or for
Eurodollar Market Index Rate Loans, as applicable, shall no longer be available
in the applicable currency until such time as the Administrative Agent notifies
the Borrower and the applicable Lenders that the circumstances giving rise to
such notice by the Administrative Agent no longer exist, and any Notice of
Borrowing, Notice of Conversion or Notice of Redenomination given by the
Borrower with respect to Eurodollar Loans denominated in Dollars or such
Alternative Currency, or for Eurodollar Market Index Rate Loans, as applicable,
that have not yet been incurred, Converted or Redenominated shall be deemed
rescinded by the Borrower or, in the case of a Notice of Borrowing, shall, at
the option of the Borrower, be deemed Converted into a Notice of Borrowing for
Prime Rate Loans to be made on the date of Borrowing contained in such Notice of
Borrowing, (y) in the case of clause (ii) above, the Borrower shall pay to such
Lender, upon written demand therefor, such additional amounts (in the form of an
increased rate of, or a different method of calculating, interest or otherwise
as
-34-
such Lender shall determine) as shall be required to compensate such Lender, for
such increased costs or reductions in amounts receivable hereunder (a written
notice as to the additional amounts owed to such Lender, showing the basis for
the calculation thereof, which basis must be reasonable, submitted to the
Borrower by such Lender shall, absent manifest error, be final and conclusive
and binding upon all parties hereto) and (z) in the case of clause (iii) above,
the Borrower shall take one of the actions specified in section 2.10(b) as
promptly as possible and, in any event, within the time period required by law.
(b) At any time that any Eurodollar Loan denominated in Dollars or in an
Alternative Currency is affected by the circumstances described in section
2.10(a)(ii) or (iii), the Borrower may (and in the case of a Eurodollar Loan
affected pursuant to section 2.10(a)(iii) the Borrower shall) either (i) if the
affected Eurodollar Loan is then being made pursuant to a Borrowing, by giving
the Administrative Agent telephonic notice (confirmed promptly in writing)
thereof on the same date that the Borrower was notified by a Lender pursuant to
section 2.10(a)(ii) or (iii), cancel said Borrowing, convert the related Notice
of Borrowing into one requesting a Borrowing of Prime Rate Loans or require the
affected Lender to make its requested Loan as a Prime Rate Loan, or (ii) if the
affected Eurodollar Loan is then outstanding, upon at least one Business Day's
notice to the Administrative Agent, require the affected Lender to Convert each
such Eurodollar Loan denominated in Dollars into a Prime Rate Loan or require
the affected Lender to Redenominate each such Eurodollar Loan denominated in an
Alternative Currency into a Prime Rate Loan, provided that if more than one
Lender is affected at any time, then all affected Lenders must be treated the
same pursuant to this section 2.10(b).
(c) If any Lender shall have determined that after the Effective Date, the
adoption of any applicable law, rule or regulation regarding capital adequacy,
or any change therein, or any change in the interpretation or administration
thereof by any governmental authority, central bank or comparable agency charged
by law with the interpretation or administration thereof, or compliance by such
Lender or its parent corporation with any request or directive regarding capital
adequacy (whether or not having the force of law) of any such authority, central
bank, or comparable agency, in each case made subsequent to the Effective Date,
has or would have the effect of reducing by an amount reasonably deemed by such
Lender to be material the rate of return on such Lender's or its parent
corporation's capital or assets as a consequence of such Lender's commitments or
obligations hereunder to a level below that which such Lender or its parent
corporation could have achieved but for such adoption, effectiveness, change or
compliance (taking into consideration such Lender's or its parent corporation's
policies with respect to capital adequacy), then from time to time, within 15
days after demand by such Lender (with a copy to the Administrative Agent), the
Borrower shall pay to such Lender such additional amount or amounts as will
compensate such Lender or its parent corporation for such reduction. Each
Lender, upon determining in good faith that any additional amounts will be
payable pursuant to this section 2.10(c), will give prompt written notice
thereof to the Borrower, which notice shall set forth, in reasonable detail, the
basis of the calculation of such additional amounts, which basis must be
reasonable, although the failure to give any such notice shall not release or
diminish any of the Borrower's obligations to pay additional amounts pursuant to
this section 2.10(c) upon the subsequent receipt of such notice.
(d) Notwithstanding anything in this Agreement to the contrary, (i) no
Lender shall be entitled to compensation or payment or reimbursement of other
amounts under section 2.10 for any amounts incurred or accruing more than 270
days prior to the giving of notice to the Borrower of additional costs or other
amounts of the nature described in such section, and (ii) no Lender shall demand
compensation for any reduction referred to in section 2.10(c) if it shall not at
the time be the general policy or practice of such Lender to demand such
compensation, payment or reimbursement in similar circumstances under comparable
provisions of other credit agreements.
2.11. Breakage Compensation. The Borrower shall compensate each applicable
Lender, upon its written request (which request shall set forth the detailed
basis for requesting and the method of calculating such compensation), for all
reasonable losses, expenses and liabilities (including, without
-35-
limitation, any loss, expense or liability incurred by reason of the liquidation
or reemployment of deposits or other funds required by such Lender to fund its
Eurodollar Loans) that such Lender may sustain: (i) if for any reason (other
than a default by such Lender or the Administrative Agent), a Borrowing of
Eurodollar Loans does not occur on a date specified therefor in a Notice of
Borrowing, Notice of Conversion or Notice of Redenomination (whether or not
rescinded or withdrawn by the Borrower or deemed rescinded or withdrawn pursuant
to section 2.10(a)); (ii) if any repayment, prepayment, Conversion,
Redenomination or Continuation of any of its Eurodollar Loans occurs on a date
that is not the last day of an Interest Period applicable thereto; (iii) if any
prepayment of any of its Eurodollar Loans is not made on any date specified in a
notice of prepayment given by the Borrower; (iv) if such Lender transfers its
Eurodollar Loans pursuant to a request by the Borrower under section 2.12(b)
hereof; or (v) as a consequence of (x) any other default by the Borrower to
repay its Eurodollar Loans when required by the terms of this Agreement or (y)
an election made pursuant to section 2.10(b). Such loss, cost, expense and
liability to any Lender shall be deemed to include an amount determined by such
Lender to be the excess, if any, of (i) the amount of interest that would have
accrued on the principal amount of such Loan had such event not occurred, at the
interest rate that would have been applicable to such Loan, for the period from
the date of such event to the last day of the then current Interest Period
therefor (or, in the case of a failure to effect a Borrowing, Conversion,
Redenomination or Continuation, for the period that would have been the Interest
Period for such Loan, over (ii) the amount of interest that would accrue on such
principal amount for such period at the interest rate that such Lender would bid
were it to bid, at the commencement of such period, for dollar deposits of a
comparable amount and period from other banks in the eurodollar market. A
certificate of any Lender setting forth any amount or amounts that such Lender
is entitled to receive pursuant to this section shall be delivered to the
Borrower and shall be conclusive absent manifest error. The Borrower shall pay
such Lender the amount shown as due on any such request within 10 days after
receipt thereof.
2.12. Change of Lending Office; Replacement of Lenders. (a) Each Lender
agrees that, upon the occurrence of any event giving rise to the operation of
section 2.10(a)(ii) or (iii) or 2.10(c), with respect to such Lender, it will,
if requested by the Borrower, use reasonable efforts (subject to overall policy
considerations of such Lender) to designate another Applicable Lending Office
for any Loans or Commitment affected by such event, provided that such
designation is made on such terms that such Lender and its Applicable Lending
Office suffer no economic, legal or regulatory disadvantage, with the object of
avoiding the consequence of the event giving rise to the operation of any such
section.
(b) If any Lender requests any compensation, reimbursement or other payment
under section 2.10(a)(ii) or (iii) or 2.10(c) with respect to such Lender, or if
any Lender is a Defaulting Lender, then the Borrower may, at its sole expense
and effort, upon notice to such Lender and the Administrative Agent, require
such Lender to assign and delegate, without recourse (in accordance with the
restrictions contained in section 13.4(c)), all its interests, rights and
obligations under this Agreement to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (i) the Borrower shall have received the prior
written consent of the Administrative Agent, which consent shall not be
unreasonably withheld, (ii) such Lender shall have received payment of an amount
equal to the outstanding principal of its Loans, accrued interest thereon,
accrued fees and all other amounts payable to it hereunder, from the assignee
(to the extent of such outstanding principal and accrued interest and fees) or
the Borrower (in the case of all other amounts, including any breakage
compensation under section 2.11 hereof), and (iii) in the case of any such
assignment resulting from a claim for compensation, reimbursement or other
payments required to be made under section 2.10(a)(ii) or (iii) or 2.10(c) with
respect to such Lender, such assignment will result in a reduction in such
compensation, reimbursement or payments. A Lender shall not be required to make
any such assignment and delegation if, prior thereto, as a result of a waiver by
such Lender or otherwise, the circumstances entitling the Borrower to require
such assignment and delegation cease to apply.
-36-
(c) Nothing in this section 2.12 shall affect or postpone any of the
obligations of the Borrower or the right of any Lender provided in section 2.10.
SECTION 3. LETTERS OF CREDIT.
3.1. Letters of Credit. (a) Subject to and upon the terms and conditions
herein set forth, the Borrower may request a Letter of Credit Issuer at any time
and from time to time on or after the Closing Date and prior to the date that is
15 Business Days prior to the Maturity Date to issue, for the account of the
Borrower or any of its Subsidiaries and in support of workers' compensation,
liability insurance, releases of contract retention obligations, contract
performance guarantee requirements and other bonding and other obligations of
the Borrower or any such Subsidiary incurred in the ordinary course of its
business, and such other standby obligations of the Borrower and its
Subsidiaries that are acceptable to the Letter of Credit Issuer, and subject to
and upon the terms and conditions herein set forth, such Letter of Credit Issuer
agrees to issue from time to time, irrevocable standby letters of credit
denominated and payable in Dollars or in an Alternative Currency in such form as
may be approved by such Letter of Credit Issuer and the Administrative Agent
(each such letter of credit (and each Existing Letter of Credit described in
section 3.1(d)), a "Letter of Credit" and collectively, the "Letters of
Credit").
(b) Notwithstanding the foregoing: (i) no Letter of Credit shall be issued
the Stated Amount of which, when added to the Letter of Credit Outstandings at
such time, would exceed either (x) $30,000,000 ("Letter of Credit Sublimit"), or
(y) when added to the aggregate principal amount of all Loans then outstanding,
an amount equal to the Total Commitment at such time; (ii) no individual Letter
of Credit (other than any Existing Letter of Credit) shall be issued that has an
initial Stated Amount less than $10,000 unless such lesser Stated Amount is
acceptable to the Letter of Credit Issuer; and (iii) each Letter of Credit shall
have an expiry date (including any renewal periods) occurring not later than the
earlier of (A) one year from the date of issuance thereof, unless a longer
period is approved by the relevant Letter of Credit Issuer and Lenders (other
than any Defaulting Lender) holding a majority of the Total Commitment, and (B)
15 Business Days prior to the Maturity Date, in each case on terms acceptable to
the Administrative Agent and the relevant Letter of Credit Issuer, provided,
however, that in the case of this subclause (B), the expiry date (including any
renewal periods) may be permitted to occur beyond the Maturity Date so long as
the Borrower shall pay to the applicable Letter of Credit Issuer an amount in
cash and/or Cash Equivalents equal to 100% of the Letter of Credit Outstandings
and such Letter of Credit Issuer shall hold such payment as security for the
reimbursement obligations of the Borrower in respect of the applicable Letter of
Credit pursuant to a cash collateral agreement to be entered into in form and
substance reasonably satisfactory to such Letter of Credit Issuer and the
Borrower (which shall permit certain investments in Cash Equivalents
satisfactory to such Letter of Credit Issuer and the Borrower until the proceeds
are applied to the secured obligations).
(c) Notwithstanding the foregoing, in the event a Lender Default exists, no
Letter of Credit Issuer shall be required to issue any Letter of Credit unless
either: (i) such Letter of Credit Issuer has entered into arrangements
satisfactory to it and the Borrower to eliminate such Letter of Credit Issuer's
risk with respect to the participation in Letters of Credit of the Defaulting
Lender or Lenders, including by cash collateralizing such Defaulting Lender's or
Lenders' Percentage of the Letter of Credit Outstandings; or (ii) the issuance
of such Letter of Credit, taking into account the potential failure of the
Defaulting Lender or Lenders to risk participate therein, will not cause the
Letter of Credit Issuer to incur aggregate credit exposure hereunder with
respect to Loans and Letter of Credit Outstandings in excess of its Commitment,
and the Borrower has undertaken, for the benefit of such Letter of Credit
Issuer, pursuant to an instrument satisfactory in form and substance to such
Letter of Credit Issuer, not to thereafter incur Loans or Letter of Credit
Outstandings hereunder that would cause the Letter of Credit Issuer to incur
aggregate credit exposure hereunder with respect to Loans and Letter of Credit
Outstandings in excess of its Commitment.
-37-
(d) Annex VI hereto contains a description of all letters of credit
outstanding on, and to continue in effect after, the Closing Date. Each such
letter of credit issued by a bank that is or becomes a Lender under this
Agreement on the Effective Date (each, an "Existing Letter of Credit") shall
constitute a "Letter of Credit" for all purposes of this Agreement, issued, for
purposes of section 3.4(a), on the Closing Date, and the Borrower, the
Administrative Agent and the applicable Lenders hereby agree that, from and
after such date, the terms of this Agreement shall apply to such Letters of
Credit, superseding any other agreement theretofore applicable to them to the
extent inconsistent with the terms hereof.
3.2. Letter of Credit Requests; Notices of Issuance. (a) Whenever it
desires that a Letter of Credit be issued, the Borrower shall give the
Administrative Agent and the Letter of Credit Issuer written or telephonic
notice (in the case of telephonic notice, promptly confirmed in writing if so
requested by the Administrative Agent) that, if in the form of written notice
shall be substantially in the form of Exhibit B-4, or transmit by electronic
communication (if arrangements for doing so have been approved by the Letter of
Credit Issuer), prior to 11:00 A.M. (local time at its Notice Office) at least
three Business Days (or such shorter period as may be acceptable to the relevant
Letter of Credit Issuer) prior to the proposed date of issuance (which shall be
a Business Day) (each a "Letter of Credit Request"), which Letter of Credit
Request shall include such supporting documents that such Letter of Credit
Issuer customarily requires in connection therewith (including, in the case of a
Letter of Credit for an account party other than the Borrower, an application
for, and if applicable a reimbursement agreement with respect to, such Letter of
Credit). Any such documents executed in connection with the issuance of a Letter
of Credit, including the Letter of Credit itself, are herein referred to as
"Letter of Credit Documents." In the event of any inconsistency between any of
the terms or provisions of any Letter of Credit Document and the terms and
provisions of this Agreement respecting Letters of Credit, the terms and
provisions of this Agreement shall control. The Administrative Agent shall
promptly notify each Lender of each Letter of Credit Request.
(b) Each Letter of Credit Issuer shall provide to the Administrative Agent
and each other Lender a quarterly (or monthly if requested by the Administrative
Agent or any applicable Lender) summary describing each Letter of Credit issued
by such Letter of Credit Issuer and then outstanding and an identification for
the relevant period of the daily aggregate Letter of Credit Outstandings
represented by Letters of Credit issued by such Letter of Credit Issuer. Each
Letter of Credit Issuer shall, if requested by the Administrative Agent or any
other Lender, provide a copy of each Letter of Credit issued by it.
3.3. Agreement to Repay Letter of Credit Drawings. (a) The Borrower hereby
agrees to reimburse (or cause any Subsidiary for whose account a Letter of
Credit was issued to reimburse) each Letter of Credit Issuer, by making payment
directly to such Letter of Credit Issuer in immediately available funds at the
payment office of such Letter of Credit Issuer, for any payment or disbursement
made by such Letter of Credit Issuer under any Letter of Credit (each such
amount so paid or disbursed until reimbursed, an "Unpaid Drawing") not later
than the Business Day immediately following the Business Day on which such
Letter of Credit Issuer notifies the Borrower (or any such Subsidiary for whose
account such Letter of Credit was issued) of such payment or disbursement (which
notice to the Borrower (or such Subsidiary) shall be delivered reasonably
promptly after any such payment or disbursement), such payment to be made in
Dollars, with interest on the amount so paid or disbursed by such Letter of
Credit Issuer, to the extent not reimbursed prior to 1:00 P.M. (local time at
the payment office of the Letter of Credit Issuer) on the date of such payment
or disbursement, from and including the date paid or disbursed to but not
including the date such Letter of Credit Issuer is reimbursed therefor at a rate
per annum that shall be the rate then applicable to Loans that are Prime Rate
Loans (plus an additional 2% per annum if not reimbursed by the third Business
Day after the date of such payment or disbursement), any such interest also to
be payable on demand. If by 11:00 A.M. on the Business Day immediately following
notice to it of its obligation to make reimbursement in respect of an Unpaid
Drawing, the Borrower has not made such reimbursement out of its available cash
on hand or a contemporaneous Borrowing hereunder, (x) the Borrower will be
deemed to have given a Notice of
-38-
Borrowing for Prime Rate Loans in an aggregate principal amount sufficient to
reimburse such Unpaid Drawing (and the Administrative Agent shall promptly give
notice to the Lenders of such deemed Notice of Borrowing), (y) the Lenders
shall, unless they are legally prohibited from doing so, make the Loans
contemplated by such deemed Notice of Borrowing (which Loans shall be considered
made under section 2.1 hereof), and (z) the proceeds of such Prime Rate Loans
shall be disbursed directly to the applicable Letter of Credit Issuer to the
extent necessary to effect such reimbursement, with any excess proceeds to be
made available to the Borrower in accordance with the applicable provisions of
this Agreement.
(b) The Borrower's obligation under this section 3.3 to reimburse, or cause
a Subsidiary to reimburse, each Letter of Credit Issuer with respect to Unpaid
Drawings (including, in each case, interest thereon) shall be absolute and
unconditional under any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment that the Borrower may have or have had
against such Letter of Credit Issuer, the Administrative Agent, any other Letter
of Credit Issuer or any Lender, including, without limitation, any defense based
upon the failure of any drawing under a Letter of Credit to conform to the terms
of the Letter of Credit or any non-application or misapplication by the
beneficiary of the proceeds of such drawing, provided, however that the Borrower
shall not be obligated to reimburse, or cause a Subsidiary to reimburse, a
Letter of Credit Issuer for any wrongful payment made by such Letter of Credit
Issuer under a Letter of Credit as a result of acts or omissions constituting
willful misconduct or gross negligence on the part of such Letter of Credit
Issuer.
3.4. Letter of Credit Participations. (a) Immediately upon the issuance by
a Letter of Credit Issuer of any Letter of Credit (and on the Closing Date with
respect to any Existing Letter of Credit), such Letter of Credit Issuer shall be
deemed to have sold and transferred to each Lender with a Commitment, and each
such Lender (each a "Participant") shall be deemed irrevocably and
unconditionally to have purchased and received from such Letter of Credit
Issuer, without recourse or warranty, an undivided interest and participation,
to the extent of such Lender's Percentage, in such Letter of Credit, each
substitute letter of credit, each drawing made thereunder, the obligations of
the Borrower under this Agreement with respect thereto (although Letter of
Credit Fees shall be payable directly to the Administrative Agent for the
account of the Lenders as provided in section 4.2 and the Participants shall
have no right to receive any portion of any fees of the nature contemplated by
section 4.3), the obligations of any Subsidiary of the Borrower under any Letter
of Credit Documents pertaining thereto, and any security for, or guaranty
pertaining to, any of the foregoing. Upon any change in the Commitments of the
Lenders pursuant to section 13.4(b), it is hereby agreed that, with respect to
all outstanding Letters of Credit and Unpaid Drawings, there shall be an
automatic adjustment to the participations pursuant to this section 3.4 to
reflect the new Percentages of the assigning and assignee Lender.
(b) In determining whether to pay under any Letter of Credit, a Letter of
Credit Issuer shall not have any obligation relative to the Participants other
than to determine that any documents required to be delivered under such Letter
of Credit have been delivered and that they appear to comply on their face with
the requirements of such Letter of Credit. Any action taken or omitted to be
taken by a Letter of Credit Issuer under or in connection with any Letter of
Credit if taken or omitted in the absence of gross negligence or willful
misconduct, shall not create for such Letter of Credit Issuer any resulting
liability.
(c) In the event that a Letter of Credit Issuer makes any payment under any
Letter of Credit and the Borrower shall not have reimbursed (or caused any
applicable Subsidiary to reimburse) such amount in full to such Letter of Credit
Issuer pursuant to section 3.3(a), such Letter of Credit Issuer shall promptly
notify the Administrative Agent, and the Administrative Agent shall promptly
notify each Participant of such failure, and each Participant shall promptly and
unconditionally pay to the Administrative Agent for the account of such Letter
of Credit Issuer, the amount of such Participant's Percentage of such payment in
U.S. dollars and in same day funds, provided, however, that no Participant shall
be obligated to pay to the Administrative Agent its Percentage of such
unreimbursed amount for any wrongful payment made by such Letter of Credit
Issuer under a Letter of Credit as a result of acts or
-39-
omissions constituting willful misconduct or gross negligence on the part of
such Letter of Credit Issuer. If the Administrative Agent so notifies any
Participant required to fund a payment under a Letter of Credit prior to 11:00
A.M. (local time at its Notice Office) on any Business Day, such Participant
shall make available to the Administrative Agent for the account of the relevant
Letter of Credit Issuer such Participant's Percentage of the amount of such
payment on such Business Day in same day funds. If and to the extent such
Participant shall not have so made its Percentage of the amount of such payment
available to the Administrative Agent for the account of the relevant Letter of
Credit Issuer, such Participant agrees to pay to the Administrative Agent for
the account of such Letter of Credit Issuer, forthwith on demand such amount,
together with interest thereon, for each day from such date until the date such
amount is paid to the Administrative Agent for the account of such Letter of
Credit Issuer at the Federal Funds Effective Rate. The failure of any
Participant to make available to the Administrative Agent for the account of the
relevant Letter of Credit Issuer its Percentage of any payment under any Letter
of Credit shall not relieve any other Participant of its obligation hereunder to
make available to the Administrative Agent for the account of such Letter of
Credit Issuer its Percentage of any payment under any Letter of Credit on the
date required, as specified above, but no Participant shall be responsible for
the failure of any other Participant to make available to the Administrative
Agent for the account of such Letter of Credit Issuer such other Participant's
Percentage of any such payment.
(d) Whenever a Letter of Credit Issuer receives a payment of a
reimbursement obligation as to which the Administrative Agent has received for
the account of such Letter of Credit Issuer any payments from the Participants
pursuant to section 3.4(c) above, such Letter of Credit Issuer shall pay to the
Administrative Agent and the Administrative Agent shall promptly pay to each
Participant that has paid its Percentage thereof, in U.S. dollars and in same
day funds, an amount equal to such Participant's Percentage of the principal
amount thereof and interest thereon accruing after the purchase of the
respective participations, as and to the extent so received.
(e) The obligations of the Participants to make payments to the
Administrative Agent for the account of each Letter of Credit Issuer with
respect to Letters of Credit shall be irrevocable and not subject to
counterclaim, set-off or other defense or any other qualification or exception
whatsoever and shall be made in accordance with the terms and conditions of this
Agreement under all circumstances, including, without limitation, any of the
following circumstances:
(i) any lack of validity or enforceability of this Agreement or any of
the other Credit Documents;
(ii) the existence of any claim, set-off defense or other right that
the Borrower (or any Subsidiary) may have at any time against a beneficiary
named in a Letter of Credit, any transferee of any Letter of Credit (or any
person for whom any such transferee may be acting), the Administrative
Agent, any Letter of Credit Issuer, any Lender, or other person, whether in
connection with this Agreement, any Letter of Credit, the transactions
contemplated herein or any unrelated transactions (including any underlying
transaction between the Borrower (or any Subsidiary) and the beneficiary
named in any such Letter of Credit), other than any claim that the Borrower
(or any Subsidiary that is the account party with respect to a Letter of
Credit) may have against any applicable Letter of Credit Issuer for gross
negligence or willful misconduct of such Letter of Credit Issuer in making
payment under any applicable Letter of Credit;
(iii) any draft, certificate or other document presented under the
Letter of Credit proving to be forged, fraudulent, invalid or insufficient
in any respect or any statement therein being untrue or inaccurate in any
respect;
(iv) the surrender or impairment of any security for the performance
or observance of any of the terms of any of the Credit Documents: or
-40-
(v) the occurrence of any Default or Event of Default.
(f) To the extent the Letter of Credit Issuer is not indemnified by the
Borrower, the Participants will reimburse and indemnify the Letter of Credit
Issuer, in proportion to their respective Percentages, for and against any and
all liabilities, obligations, losses, damages, penalties, claims, actions,
judgments, costs, expenses or disbursements of whatsoever kind or nature that
may be imposed on, asserted against or incurred by the Letter of Credit Issuer
in performing its respective duties in any way related to or arising out of its
issuance of Letters of Credit, provided that no Participants shall be liable for
any portion of such liabilities, obligations, losses, damages, penalties,
claims, actions, judgments, costs, expenses or disbursements resulting from the
Letter of Credit Issuer's gross negligence or willful misconduct.
3.5. Increased Costs. If after the Effective Date, the adoption of any
applicable law, rule or regulation, or any change therein, or any change in the
interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any Letter of Credit Issuer or any Lender with any
request or directive (whether or not having the force of law) by any such
authority, central bank or comparable agency (in each case made subsequent to
the Effective Date) shall either: (i) impose, modify or make applicable any
reserve, deposit, capital adequacy or similar requirement against Letters of
Credit issued by such Letter of Credit Issuer or such Lender's participation
therein; or (ii) shall impose on such Letter of Credit Issuer or any Lender any
other conditions affecting this Agreement, any Letter of Credit or such Lender's
participation therein; and the result of any of the foregoing is to increase the
cost to such Letter of Credit Issuer or such Lender of issuing, maintaining or
participating in any Letter of Credit, or to reduce the amount of any sum
received or receivable by such Letter of Credit Issuer or such Lender hereunder
(other than any increased cost or reduction in the amount received or receivable
resulting from the imposition of or a change in the rate of taxes or similar
charges), then, upon demand to the Borrower by such Letter of Credit Issuer or
such Lender (a copy of which notice shall be sent by such Letter of Credit
Issuer or such Lender to the Administrative Agent), the Borrower shall pay to
such Letter of Credit Issuer or such Lender such additional amount or amounts as
will compensate any such Letter of Credit Issuer or such Lender for such
increased cost or reduction. A certificate submitted to the Borrower by any
Letter of Credit Issuer or any Lender, as the case may be (a copy of which
certificate shall be sent by such Letter of Credit Issuer or such Lender to the
Administrative Agent), setting forth, in reasonable detail, the basis for the
determination of such additional amount or amounts necessary to compensate any
Letter of Credit Issuer or such Lender as aforesaid shall be conclusive and
binding on the Borrower absent manifest error, although the failure to deliver
any such certificate shall not release or diminish any of the Borrower's
obligations to pay additional amounts pursuant to this section 3.5. Reference is
hereby made to the provisions of sections 2.10(d) and 2.12 for certain
limitations upon the rights of a Letter of Credit Issuer or Lender under this
section.
3.6. Guaranty of Subsidiary Letter of Credit Obligations. (a) The Borrower
hereby unconditionally guarantees, for the benefit of the Administrative Agent
and the Lenders, the full and punctual payment of the Obligations of each
Subsidiary under each Letter of Credit Document to which such Subsidiary is now
or hereafter becomes a party. Upon failure by any such Subsidiary to pay
punctually any such amount, the Borrower shall forthwith on demand by the
Administrative Agent pay the amount not so paid at the place and in the currency
and otherwise in the manner specified in this Agreement or any applicable Letter
of Credit Document.
(b) As a separate, additional and continuing obligation, the Borrower
unconditionally and irrevocably undertakes and agrees, for the benefit of the
Administrative Agent and the Lenders, that, should any amounts not be
recoverable from the Borrower under section 3.6(a) for any reason whatsoever
(including, without limitation, by reason of any provision of any Credit
Document or any other agreement or instrument executed in connection therewith
being or becoming void, unenforceable, or otherwise
-41-
invalid under any applicable law) then, notwithstanding any notice or knowledge
thereof by any Lender, the Administrative Agent, any of their respective
Affiliates, or any other person, at any time, the Borrower as sole, original and
independent obligor, upon demand by the Administrative Agent, will make payment
to the Administrative Agent, for the account of the Lenders and the
Administrative Agent, of all such obligations not so recoverable by way of full
indemnity, in such currency and otherwise in such manner as is provided in the
Credit Documents.
(c) The obligations of the Borrower under this section shall be
unconditional and absolute and, without limiting the generality of the foregoing
shall not be released, discharged or otherwise affected by the occurrence, one
or more times, of any of the following:
(i) any extension, renewal, settlement, compromise, waiver or release
in respect to any obligation of any Subsidiary under any Letter of Credit
Document, by operation of law or otherwise;
(ii) any modification or amendment of or supplement to this Agreement,
any Note or any other Credit Document;
(iii) any release, non-perfection or invalidity of any direct or
indirect security for any obligation of the Borrower under this Agreement,
any Note or any other Credit Document or of any Subsidiary under any Letter
of Credit Document;
(iv) any change in the corporate existence, structure or ownership of
any Subsidiary or any insolvency, bankruptcy, reorganization or other
similar proceeding affecting any Subsidiary or its assets or any resulting
release or discharge of any obligation of any Subsidiary contained in any
Letter of Credit Document;
(v) the existence of any claim, set-off or other rights that the
Borrower may have at any time against any Subsidiary, the Administrative
Agent, any Lender or any other person, whether in connection herewith or
any unrelated transactions;
(vi) any invalidity or unenforceability relating to or against any
Subsidiary for any reason of any Letter of Credit Document, or any
provision of applicable law or regulation purporting to prohibit the
payment by any Subsidiary of any Obligations in respect of any Letter of
Credit; or
(vii) any other act or omission to act or delay of any kind by any
Subsidiary, the Administrative Agent, any Lender or any other person or any
other circumstance whatsoever that might, but for the provisions of this
section, constitute a legal or equitable discharge of the Borrower's
obligations under this section.
(d) The Borrower's obligations under this section shall remain in full
force and effect until the Commitments shall have terminated and the principal
of and interest on the Notes and all other amounts payable by the Borrower under
the Credit Documents and by any Subsidiary under the Letter of Credit Documents
shall have been paid in full. If at any time any payment of any of the
Obligations of any Subsidiary in respect of any Letter of Credit Documents is
rescinded or must be otherwise restored or returned upon the insolvency,
bankruptcy or reorganization of such Subsidiary, the Borrower's obligations
under this section with respect to such payment shall be reinstated at such time
as though such payment had been due but not made at such time.
(e) The Borrower irrevocably waives acceptance hereof, presentment, demand,
protest and any notice not provided for herein, as well as any requirement that
at any time any action be taken by any
-42-
person against any Subsidiary or any other person, or against any collateral or
guaranty of any other person.
(f) The Borrower hereby subordinates all rights, whether arising by
operation of law or otherwise, that it may have upon making any payment under
this section to be subrogated to the rights of the payee against any Subsidiary
with respect to such payment or otherwise to be reimbursed, indemnified or
exonerated by any Subsidiary in respect thereof, to the indefeasible payment in
full of all of the Obligations.
(g) In the event that acceleration of the time for payment of any amount
payable by any Subsidiary under any Letter of Credit Document is stayed upon
insolvency, bankruptcy or reorganization of such Subsidiary, all such amounts
otherwise subject to acceleration under the terms of any applicable Letter of
Credit Document shall nonetheless be payable by the Borrower under this section
forthwith on demand by the Administrative Agent.
SECTION 4. FEES.
4.1. Facility Fee. (a) The Borrower agrees to pay to the Administrative
Agent a Facility Fee ("Facility Fee"), for the account of each Non-Defaulting
Lender that has a General Revolving Commitment, for the period from and
including the Effective Date to but not including the date the Total General
Revolving Commitment has been terminated and no General Revolving Loans are
outstanding, which Facility Fee, in the case of any such Non-Defaulting Lender,
shall be computed on the amount of the Total General Revolving Commitment of
such Non-Defaulting Lender, whether used or unused, at the Applicable Facility
Fee Rate. The Facility Fee shall be due and payable in arrears on a
nonrefundable basis, on the last Business Day of each March, June, September and
December and on the Maturity Date, for the preceding quarter (or shorter period,
if applicable), based on a year of 360 days and the actual number of days
elapsed in such period.
(b) As used herein, the term "Applicable Facility Fee Rate" means the
particular rate per annum determined by the Administrative Agent in accordance
with the Pricing Grid Table that appears in section 2.8(h) hereof, based on the
Borrower's ratio of Consolidated Total Debt to Consolidated EBITDA, and the
following provisions:
(i) Initially, until changed hereunder in accordance with the
following provisions, the Applicable Facility Fee Rate will be 35 basis
points per annum.
(ii) Commencing with the fiscal quarter of the Borrower ended on or
nearest to September 30, 2003, and continuing for each fiscal quarter
thereafter, the Administrative Agent will determine the Applicable Facility
Fee Rate in accordance with the Pricing Grid Table, based on the Borrower's
ratio of (x) Consolidated Total Debt as of the end of the fiscal quarter,
to (y) Consolidated EBITDA for the Testing Period ended on the last day of
the fiscal quarter, and identified in such Pricing Grid Table. Changes in
the Applicable Facility Fee Rate shall be made and effective as of the same
date as is provided in section 2.8(h) in the case of the determination or
re-determination of the Applicable Prime Rate Margin or Applicable
Eurodollar Margin.
(iii) Notwithstanding the above provisions, during any period when (A)
the Borrower has failed to timely deliver its consolidated financial
statements referred to in section 9.1(a) or (b), accompanied by the
certificate and calculations referred to in section 9.1(c), or (B) an Event
of Default has occurred and is continuing, the Applicable Facility Fee Rate
shall be the highest rate per annum indicated therefor in the Pricing Grid
Table, regardless of the Borrower's ratio of Consolidated Total Debt to
Consolidated EBITDA at such time.
-43-
(iv) Any changes in the Applicable Facility Fee Rate shall be
determined by the Administrative Agent in accordance with the above
provisions and the Administrative Agent will promptly provide notice of
such determinations to the Borrower and the Lenders. Any such determination
by the Administrative Agent pursuant to this section 4.1(b) shall be
conclusive and binding absent manifest error.
4.2. Letter of Credit Fees. The Borrower agrees to pay to the
Administrative Agent, for the account of each Non-Defaulting Lender, pro rata on
the basis of its Percentage, a fee in respect of each Letter of Credit (the
"Letter of Credit Fee"), payable quarterly in arrears on the last Business Day
of each March, June, September and December and on the Maturity Date, computed
at the rate per annum equal to the Applicable Eurodollar Margin then in effect
on the Stated Amount thereof for the period from the date of issuance (or any
increase in the amount, or renewal or extension) to the expiration date thereof
(including any extensions of such expiration date that may be made at the
election of the beneficiary thereof). Notwithstanding the above provisions, if
an Event of Default is in existence, the Borrower will pay to the Administrative
Agent, on demand, for the account of each Non-Defaulting Lender, pro rata on the
basis of its Percentage, an additional Letter of Credit Fee, computed at 2% per
annum on the Stated Amount of each Letter of Credit for the period such Default
or Event of Default is in existence.
4.3. Facing Fees. The Borrower agrees to pay directly to each Letter of
Credit Issuer, for its own account, a fee in respect of each Letter of Credit
issued by it (a "Facing Fee"), payable quarterly in arrears on the last Business
Day of each March, June, September and December and on the Maturity Date,
computed at a rate of 1/8 of 1% per annum on the Stated Amount thereof for the
period from the date of issuance (or increase, renewal or extension) to the
expiration date thereof (including any extensions of such expiration date that
may be made at the election of the beneficiary thereof.
4.4. Letter of Credit Administrative Fees. The Borrower agrees to pay
directly to each Letter of Credit Issuer upon each issuance of, drawing under,
and/or amendment, extension, renewal or transfer of, a Letter of Credit issued
by it such amount as shall at the time of such issuance, drawing, amendment,
extension, renewal or transfer be the administrative or processing charge that
such Letter of Credit Issuer customarily charges for issuances, drawings under
or amendments, extensions, renewals or transfers of, letters of credit issued by
it.
4.5. Other Fees. The Borrower shall pay to the Administrative Agent on the
Effective Date and thereafter for its own account and/or for distribution to the
Lenders such fees as heretofore agreed by the Borrower and the Administrative
Agent in the Commitment Letter dated February 19, 2003.
4.6. Computations of Fees. All computations of Fees under this Agreement
shall be made in accordance with section 13.7(b).
SECTION 5. REDUCTIONS AND TERMINATION OF COMMITMENTS.
5.1. Voluntary Termination/Reduction of Commitments. Upon at least three
Business Days' prior written notice (or telephonic notice confirmed in writing)
to the Administrative Agent at its Notice Office (which notice the
Administrative Agent shall promptly transmit to each of the Lenders), the
Borrower shall have the right, without premium or penalty, to:
(a) terminate the Total Commitment, provided that all outstanding Loans are
contemporaneously prepaid in accordance with section 6.1;
(b) terminate the Swing Line Revolving Commitment, provided that all
outstanding Swing Line Revolving Loans are contemporaneously prepaid in
accordance with section 6.1;
-44-
(c) partially and permanently reduce the Unutilized Total General Revolving
Commitment, provided that: (i) any such reduction shall apply to proportionately
and permanently reduce the General Revolving Commitment of each of the Lenders;
(ii) any partial reduction of the Unutilized Total General Revolving Commitment
pursuant to this section 5.1(c) shall be in the amount of at least $5,000,000
(or, if greater, in integral multiples of $1,000,000); and (iii) after giving
effect to any such partial reduction of the Unutilized Total General Revolving
Commitment, the Total General Revolving Commitment then in effect shall exceed
the Swing Line Revolving Commitment then in effect by at least $20,000,000;
and/or
(d) partially and permanently reduce the Unutilized Swing Line Revolving
Commitment, provided that any partial reduction of the Unutilized Swing Line
Revolving Commitment pursuant to this section 5.1(d) shall be in the amount of
at least $1,000,000 (or, if greater, in integral multiples of $1,000,000).
5.2. Mandatory Termination/Adjustments of Commitments, etc. (a) The Total
Commitment (and the Commitment of each Lender) shall terminate on March 31,
2003, unless the Closing Date has occurred on or prior to such date.
(b) The Total Commitment shall terminate (and the Commitment of each Lender
shall terminate) on the earlier of (x) the Maturity Date and (y) the date on
which a Change of Control occurs.
(c) The Total General Revolving Commitment shall be permanently reduced,
without premium or penalty, at the time that any mandatory prepayment of General
Revolving Loans would be made pursuant to section 6.2(e), (f), (g) or (h) if
General Revolving Loans were then outstanding in the full amount of the Total
General Revolving Commitment then in effect, in an amount equal to the required
prepayment of principal of General Revolving Loans that would be required to be
made in such circumstance. Any such reduction shall apply to proportionately and
permanently reduce the General Revolving Commitment of each of the Lenders. The
Borrower will provide at least three Business Days' prior written notice (or
telephonic notice confirmed in writing) to the Administrative Agent at its
Notice Office (which notice the Administrative Agent shall promptly transmit to
each of the Lenders), of any reduction of the Total General Revolving Commitment
pursuant to this section 5.2(c), specifying the date and amount of the
reduction.
SECTION 6. PAYMENTS.
6.1. Voluntary Prepayments. The Borrower shall have the right to prepay any
of its Loans, in whole or in part, without premium or penalty, from time to time
on the following terms and conditions:
(a) the Borrower shall give the Administrative Agent at the Notice Office
written or telephonic notice (in the case of telephonic notice, promptly
confirmed in writing if so requested by the Administrative Agent) of its intent
to prepay the Loans, the amount of such prepayment and (in the case of
Eurodollar Loans) the specific Borrowing(s) pursuant to which made, which notice
shall be received by the Administrative Agent by:
(x) 11:00 A.M. (local time at the Notice Office) three Business Days
prior to the date of such prepayment, in the case of any prepayment of
Eurodollar Loans; or
(y) 11:00 A.M. (local time at the Notice Office) one Business day
prior to the date of such prepayment, in the case of any prepayment of
Prime Rate Loans;
and which notice shall promptly be transmitted by the Administrative Agent
to each of the affected Lenders;
-45-
(b) in the case of prepayment of any Borrowings under the General Revolving
Facility, each partial prepayment of any such Borrowing shall be in an aggregate
principal of at least $1,000,000 or an integral multiple of $500,000 in excess
thereof, in the case of Prime Rate Loans, and at least $2,000,000 (or the
substantial equivalent thereof in any Alternative Currency) or an integral
multiple of $1,000,000 (or the substantial equivalent thereof in any Alternative
Currency) in excess thereof, in the case of Eurodollar Loans;
(c) in the case of prepayment of any Borrowings under the Swing Line
Revolving Facility, each partial prepayment of any such Borrowing shall be in an
aggregate principal of at least $500,000 or an integral multiple of $250,000 (or
the substantial equivalent thereof in any Alternative Currency) in excess
thereof;
(d) no partial prepayment of any Loans made pursuant to a Borrowing shall
reduce the aggregate principal amount of such Loans outstanding pursuant to such
Borrowing to an amount less than the Minimum Borrowing Amount applicable
thereto;
(e) each prepayment in respect of any Loans made pursuant to a Borrowing
shall be applied pro rata among such Loans; and
(f) each prepayment of Eurodollar Loans pursuant to this section 6.1 on any
date other than the last day of the Interest Period applicable thereto shall be
accompanied by any amounts payable in respect thereof under section 2.11.
6.2. Mandatory Prepayments. The Loans shall be subject to mandatory
prepayment in accordance with the following provisions:
(a) If Outstanding General Revolving Loans, Letter of Credit Outstandings
and Swing Line Revolving Loans Exceed Total General Revolving Commitment. If on
any date (after giving effect to any other payments on such date) the sum of (i)
the aggregate outstanding principal amount of General Revolving Loans, plus (ii)
the aggregate amount of Letter of Credit Outstandings, plus (iii) the aggregate
outstanding principal amount of Swing Line Revolving Loans, exceeds the Total
General Revolving Commitment as then in effect, the Borrower shall prepay on
such date that principal amount of Swing Line Revolving Loans and, after Swing
Line Revolving Loans have been paid in full, Unpaid Drawings and, after Unpaid
Drawings have been paid in full, General Revolving Loans, in an aggregate amount
at least equal to such excess and conforming in the case of partial prepayments
of any Loans to the applicable requirements as to the amounts of partial
prepayments that are contained in section 6.1.
(b) If Outstanding Swing Line Revolving Loans Exceed Unutilized Total
General Revolving Commitment. If on any date (after giving effect to any other
payments on such date) the aggregate outstanding principal amount of Swing Line
Revolving Loans exceeds the Unutilized Total General Revolving Commitment at
such time, the Borrower shall prepay on such date Swing Line Revolving Loans in
an aggregate amount at least equal to such excess and conforming in the case of
partial prepayments of Swing Line Revolving Loans to the requirements as to the
amounts of partial prepayments of Swing Line Revolving Loans that are contained
in section 6.1.
(c) If Outstanding Swing Line Revolving Loans Exceed Swing Line Revolving
Commitment. If on any date (after giving effect to any other payments on such
date) the aggregate outstanding principal amount of Swing Line Revolving Loans
exceeds the Swing Line Revolving Commitment at such time, the Borrower shall
prepay on such date Swing Line Revolving Loans in an aggregate amount at least
equal to such excess and conforming in the case of partial prepayments of Swing
Line Revolving Loans to the requirements as to the amounts of partial
prepayments of Swing Line Revolving Loans that are contained in section 6.1.
-46-
(d) If Alternative Currency Loans Exceed Alternative Currency Sublimit. If
on any date (after giving effect to any other payments on such date) the
aggregate outstanding principal amount of General Revolving Loans denominated in
an Alternative Currency exceeds the Alternative Currency Sublimit, the Borrower
shall prepay on such date General Revolving Loans denominated in Alternative
Currencies in an aggregate principal amount at least equal to such excess and
conforming in the case of partial prepayments of General Revolving Loans to the
requirements as to the amounts of partial prepayments that are contained in
section 6.1.
(e) Certain Proceeds of Asset Sales. If during any fiscal year of the
Borrower, the Borrower and its Subsidiaries have received cumulative Net Cash
Proceeds during such fiscal year from one or more Asset Sales in an aggregate
amount at least equal to $10,000,000, then not later than the third Business Day
following the date of receipt of any Net Cash Proceeds in excess of such amount,
an amount, conforming to the requirements as to the amount of partial
prepayments contained in section 6.1, at least equal to 100% of the Net Cash
Proceeds then received in excess of such amount from any Asset Sale, shall be
applied as a mandatory prepayment of principal of first, Swing Line Revolving
Loans and, second, after Swing Line Revolving Loans have been paid in full,
Unpaid Drawings and, third, after Unpaid Drawings have been paid in full,
General Revolving Loans provided, that (i) if no Default under section 11.1(a)
or Event of Default shall have occurred and be continuing, (ii) the Borrower and
its Subsidiaries have scheduled Consolidated Capital Expenditures during the
following 12 months, and (iii) the Borrower notifies the Administrative Agent of
the amount and nature thereof and of its intention to reinvest all or a portion
of such Net Cash Proceeds in such Consolidated Capital Expenditures during such
12 month period, then no such prepayment shall be required to the extent the
Borrower so indicates that such reinvestment will take place. If at the end of
any such 12 month period any portion of such Net Cash Proceeds has not been so
reinvested, the Borrower will immediately make a prepayment of the outstanding
Swing Line Revolving Loans and General Revolving Loans as provided above in an
amount, conforming to the requirements as to amount of prepayments contained in
section 6.1, at least equal to such remaining amount.
(f) Proceeds of Debt Incurrence. Concurrently with the receipt by the
Borrower or any Subsidiary of any Net Debt Proceeds, the Borrower shall deliver
to the Administrative Agent a calculation of the amount of such Net Debt
Proceeds and make a mandatory prepayment at least equal to 100% of such Net Debt
Proceeds to be applied as a mandatory prepayment of principal of first, Swing
Line Revolving Loans and, second, after Swing Line Revolving Loans have been
paid in full, Unpaid Drawings and, third, after Unpaid Drawings have been paid
in full, General Revolving Loans.
(g) Event of Loss. If during any fiscal year of the Company, the Company
and its Subsidiaries have received cumulative Net Cash Proceeds during such
fiscal year from one or more Events of Loss of at least $5,000,000, not later
than the fifth Business Day following the date of receipt of any Net Cash
Proceeds in excess of such amount, an amount, conforming to the requirements as
to the amount of partial prepayments contained in section 6.1, at least equal to
100% of the Net Cash Proceeds then received in excess of such amount from any
Event of Loss, shall be applied as a mandatory prepayment of principal.
(h) Material Recovery Event. Concurrently with the receipt by the Borrower
or any Subsidiary of Net Cash Proceeds in respect of any Material Recovery
Event, the Borrower shall deliver to the Administrative Agent a calculation of
the amount of such Net Cash Proceeds and make a mandatory prepayment at least
equal to 100% of such Net Cash Proceeds to be applied as a mandatory prepayment
of principal of first, Swing Line Revolving Loans and, second, after Swing Line
Revolving Loans have been paid in full, Unpaid Drawings and, third, after Unpaid
Drawings have been paid in full, General Revolving Loans.
-47-
(i) Change of Control. On the date of which a Change of Control occurs,
notwithstanding anything to the contrary contained in this Agreement, no further
Borrowings shall be made and the then outstanding principal amount of all Loans,
if any, and other Obligations, shall become due and payable and shall be prepaid
in full, together with accrued interest and Fees and the Borrower shall
contemporaneously either (i) cause all outstanding Letters of Credit to be
surrendered for cancellation (any such Letters of Credit to be replaced by
letters of credit issued by other financial institutions acceptable to the
Required General Revolving Lenders), or (ii) the Borrower shall pay to the
Administrative Agent an amount in cash and/or Cash Equivalents equal to 100% of
the Letter of Credit Outstandings and the Administrative Agent shall hold such
payment as security for the reimbursement obligations of the Borrower in respect
of Letters of Credit pursuant to a cash collateral agreement to be entered into
in form and substance reasonably satisfactory to the Administrative Agent, each
Letter of Credit Issuer and the Company (which shall permit certain investments
in Cash Equivalents satisfactory to the Administrative Agent, each Letter of
Credit Issuer and the Borrower until the proceeds are applied to the secured
obligations).
(j) Particular Loans to be Prepaid. With respect to each repayment or
prepayment of Loans required by this section 6.2, the Borrower shall designate
the Types of Loans that are to be prepaid and the specific Borrowing(s) pursuant
to which such repayment or prepayment is to be made, provided that (i) the
Borrower shall first so designate all Loans that are Prime Rate Loans and
Eurodollar Loans with Interest Periods ending on the date of repayment or
prepayment prior to designating any other Eurodollar Loans for repayment or
prepayment, (ii) if the outstanding principal amount of Eurodollar Loans made
pursuant to a Borrowing is reduced below the applicable Minimum Borrowing Amount
as a result of any such repayment or prepayment, then all the Loans outstanding
pursuant to such Borrowing shall be Converted into Prime Rate Loans, and (iii)
each repayment and prepayment of any Loans made pursuant to a Borrowing shall be
applied pro rata among such Loans. In the absence of a designation by the
Borrower as described in the preceding sentence, the Administrative Agent shall,
subject to the above, make such designation in its sole discretion with a view,
but no obligation, to minimize breakage costs owing under section 2.11. Any
repayment or prepayment of Eurodollar Loans pursuant to this section 6.2 shall
in all events be accompanied by such compensation as is required by section
2.11.
6.3. Method and Place of Payment. (a) Except as otherwise specifically
provided herein, all payments under this Agreement shall be made to the
Administrative Agent for the ratable (based on its pro rata share) account of
the Lenders entitled thereto, not later than 11:00 A.M. (local time at the
Payment Office) on the date when due and shall be made in immediately available
funds and in lawful money of the United States of America (in the case of Loans
denominated in Dollars), or in the applicable Alternative Currency (in the case
of Loans denominated in an Alternative Currency), at the Payment Office, it
being understood that written notice by the Borrower to the Administrative Agent
to make a payment from the funds in the Borrower's account at the Payment Office
shall constitute the making of such payment to the extent of such funds held in
such account. Any payments under this Agreement that are made later than 11:00
A.M. (local time at the Payment Office) shall be deemed to have been made on the
next succeeding Business Day. Whenever any payment to be made hereunder shall be
stated to be due on a day that is not a Business Day, the due date thereof shall
be extended to the next succeeding Business Day and, with respect to payments of
principal, interest shall be payable during such extension at the applicable
rate in effect immediately prior to such extension.
(b) If at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, interest and Fees
then due hereunder and an Event of Default is not then in existence, such funds
shall be applied (i) first, towards payment of interest and Fees then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of interest and Fees then due to such parties, and (ii) second, towards
payment of principal then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of principal then due to such parties.
-48-
6.4. Net Payments. (a) All payments made by the Borrower hereunder or under
any Note will be made without setoff, counterclaim or other defense. Except as
provided for in section 6.4(b), all such payments will be made free and clear
of, and without deduction or withholding for, any present or future taxes,
levies, imposts, duties, fees, assessments or other charges of whatever nature
now or hereafter imposed by any jurisdiction or by any political subdivision or
taxing authority thereof or therein with respect to such payments (but
excluding, except as provided in the second succeeding sentence, any tax,
imposed on or measured by the net income or net profits of a Lender pursuant to
the laws of the jurisdiction under which such Lender is organized or the
jurisdiction in which the principal office or Applicable Lending Office of such
Lender is located or any subdivision thereof or therein) and all interest,
penalties or similar liabilities with respect to such nonexcluded taxes, levies
imposts, duties, fees, assessments or other charges (all such nonexcluded taxes
levies, imposts, duties, fees assessments or other charges being referred to
collectively as "Taxes"). If any Taxes are so levied or imposed, the Borrower
agrees to pay the full amount of such Taxes and such additional amounts as may
be necessary so that every payment by them of all amounts due hereunder or under
any Note, after withholding or deduction for or on account of any Taxes will not
be less than the amount provided for herein or in such Note. If any amounts are
payable in respect of Taxes pursuant to the preceding sentence, the Borrower
agrees to reimburse each Lender, upon the written request of such Lender for
taxes imposed on or measured by the net income or profits of such Lender
pursuant to the laws of the jurisdiction in which such Lender is organized or in
which the principal office or Applicable Lending Office of such Lender is
located or under the laws of any political subdivision or taxing authority of
any such jurisdiction in which the principal office or Applicable Lending Office
of such Lender is located and for any withholding of income or similar taxes
imposed by the United States of America as such Lender shall determine are
payable by, or withheld from, such Lender in respect of such amounts so paid to
or on behalf of such Lender pursuant to the preceding sentence and in respect of
any amounts paid to or on behalf of such Lender pursuant to this sentence, which
request shall be accompanied by a statement from such Lender setting forth, in
reasonable detail, the computations used in determining such amounts. The
Borrower will furnish to the Administrative Agent within 45 days after the date
the payment of any Taxes, or any withholding or deduction on account thereof, is
due pursuant to applicable law certified copies of tax receipts, or other
evidence satisfactory to the relevant Lender, evidencing such payment by the
Borrower. The Borrower will indemnify and hold harmless the Administrative Agent
and each Lender, and reimburse the Administrative Agent or such Lender upon its
written request, for the amount of any Taxes so levied or imposed and paid or
withheld by such Lender.
(b) Each Lender that is a Foreign Lender agrees to provide to the Company
and the Administrative Agent on or prior to the Effective Date, or in the cases
of a Lender that is an assignee or transferee of an interest under this
Agreement pursuant to section 13.4 (unless the respective Lender was already a
Lender hereunder immediately prior to such assignment or transfer and such
Lender is in compliance with the provisions of this section 6.4(b)), on the date
of such assignment or transfer to such Lender, (i) two accurate and complete
original signed copies of Internal Revenue Service Form W-8BEN or W-8ECI (or
successor forms) certifying to such Lender's entitlement to a complete exemption
from United States withholding tax with respect to payments to be made under
this Agreement or any Note, or (ii) if the Lender is not a "bank" within the
meaning of section 881(c)(3)(A) of the Code and cannot deliver either Internal
Revenue Service Form W-8BEN or W-8ECI pursuant to clause (i) above, (x) a
certificate substantially in the form of Exhibit D (any such certificate, a
"Section 6.4(b)(ii) Certificate") and (y) two accurate and complete original
signed copies of Internal Revenue Service Form W-8 (or successor form)
certifying to such Lender's entitlement to a complete exemption from United
States withholding tax with respect to payments of interest to be made under
this Agreement or any Note. In addition, each Lender agrees that from time to
time after the Effective Date, when a lapse in time or change in circumstances
renders the previous certification obsolete or inaccurate in any material
respect, it will deliver to the Borrower and the Administrative Agent two new
accurate and complete original signed copies of Internal Revenue Service Form
W-8BEN or W-8ECI, and a Section 6.4(b)(ii) Certificate, as the case may be, and
such other forms as may be required in order to confirm or establish
-49-
the entitlement of such Lender to a continued exemption from or reduction in
United States withholding tax with respect to payments under this Agreement or
any Note, or it shall immediately notify the Borrower and the Administrative
Agent of its inability to deliver any such Form or Certificate, in which case
such Lender shall not be required to deliver any such Form or Certificate
pursuant to this section 6.4(b). Notwithstanding anything to the contrary
contained in section 6.4(a), but subject to section 13.4(g) and the immediately
succeeding sentence, (x) the Borrower shall be entitled, to the extent it is
required to do so by law, to deduct or withhold income or other similar taxes
imposed by the United States (or any political subdivision or taxing authority
thereof or therein) from interest, fees or other amounts payable hereunder for
the account of any Lender that is a Foreign Lender and that has not provided to
the Borrower such forms that establish a complete exemption from such deduction
or withholding and (y) the Borrower shall not be obligated pursuant to section
6.4(a) hereof to gross-up payments to be made to a Lender in respect of income
or similar taxes imposed by the United States or any additional amounts with
respect thereto (I) if such Lender has not provided to the Borrower the Internal
Revenue Service forms required to be provided to the Borrower pursuant to this
section 6.4(b) or (II) in the case of a payment other than interest, to a Lender
described in clause (ii) above, to the extent that such forms do not establish a
complete exemption from withholding of such taxes. Notwithstanding anything to
the contrary contained in the preceding sentence or elsewhere in this section
6.4 and except as specifically provided for in section 13.4(g), the Borrower
agrees to pay additional amounts and indemnify each Lender in the manner set
forth in section 6.4(a) (without regard to the identity of the jurisdiction
requiring the deduction or withholding) in respect of any Taxes deducted or
withheld by it as described in the previous sentence as a result of any changes
after the Effective Date in any applicable law, treaty, governmental rule,
regulation, guideline or order, or in the interpretation thereof, relating to
the deducting or withholding of income or similar Taxes.
(c) If any Lender, in its sole opinion, determines that it has finally and
irrevocably received or been granted a refund in respect of any Taxes paid as to
which indemnification has been paid by the Borrower pursuant to this section, it
shall promptly remit such refund (including any interest received in respect
thereof), net of all out-of-pocket costs and expenses; provided, that the
Borrower agrees to promptly return any such refund (plus interest) to such
Lender in the event such Lender is required to repay such refund to the relevant
taxing authority. Any such Lender shall provide the Borrower with a copy of any
notice of assessment from the relevant taxing authority (redacting any unrelated
confidential information contained therein) requiring repayment of such refund.
Nothing contained herein shall impose an obligation on any Lender to apply for
any such refund.
6.5. Late Charges. If any principal of any Loan is not paid within 10 days
after the Administrative Agent shall have given the Borrower notice of demand
for the payment of the same or within 10 days after any Event of Default
described in section 11.1(g) in respect of the Borrower shall have occurred, or
if any interest on any Loan is not paid within 10 days after the same becomes
due, then and in any such case the Administrative Agent shall have the right to
assess a late charge, payable by the Borrower upon demand, in an amount equal to
the greater of $20.00 or 3% of the amount not timely paid. Any such late charge
shall be for the account of the Lenders for the benefit of whom such amount was
not timely paid and shall be in addition to any other amounts payable by the
Borrower under the Credit Documents.
SECTION 7. CONDITIONS PRECEDENT.
7.1. Conditions Precedent at Closing Date. The obligation of the Lenders to
make Loans is subject to the satisfaction of each of the following conditions on
the Closing Date:
(a) Effectiveness; Notes. On or prior to the Closing Date, (i) the
Effective Date shall have occurred and (ii) there shall have been delivered to
the Administrative Agent for the account of each
-50-
Lender the appropriate Note or Notes executed by the Borrower, in each case, in
the amount, maturity and as otherwise provided herein.
(b) Fees, etc. The Borrower shall have paid or caused to be paid all fees
required to be paid by it on or prior to such date pursuant to section 4 hereof
and all reasonable fees and expenses of the Administrative Agent and of special
counsel to the Administrative Agent that have been invoiced on or prior to such
date in connection with the preparation, execution and delivery of this
Agreement and the other Credit Documents and the consummation of the
transactions contemplated hereby and thereby.
(c) Corporate Charter and Good Standing Certificates. The Administrative
Agent shall have received, in sufficient quantity for the Administrative Agent
and the Lenders: (i) a copy of the Certificate of Incorporation of the Borrower
and any and all amendments and restatements thereof, certified as of a recent
date by the Secretary of State of the State of Delaware; (ii) a good standing
certificate from the Secretary of State of the State of Delaware, dated as of a
recent date, listing all charter documents affecting the Borrower and certifying
as to the good standing of the Borrower; and (iii) certificates of good standing
from each other jurisdiction in which the failure of the Borrower to be
authorized or qualified to do business could reasonably be expected to have a
Material Adverse Effect.
(d) Corporate Certificate. The Administrative Agent shall have received, in
sufficient quantity for the Administrative Agent and the Lenders, a certificate
of the Secretary or an Assistant Secretary of the Borrower, dated the Closing
Date or reasonably prior thereto, substantially in the form attached hereto as
Exhibit C, and such certificate shall be satisfactory in form and substance to
the Administrative Agent.
(e) Borrower's Closing Certificate. The Administrative Agent shall have
received a certificate, dated the Closing Date, of a responsible financial or
accounting officer of the Borrower to the effect that, at and as of the Closing
Date and both before and after giving effect to the initial Borrowings hereunder
and the application of the proceeds thereof: (x) the Borrower is in compliance
with all of the covenants contained in sections 9 and 10 of this Agreement; (y)
no Default or Event of Default has occurred or is continuing; and (z) all
representations and warranties of the Borrower contained herein or in the other
Credit Documents are true and correct in all material respects with the same
effect as though such representations and warranties had been made on and as of
the Closing Date, except that as to any such representations and warranties that
expressly relate to an earlier specified date, such representations and
warranties are only represented as having been true and correct in all material
respects as of the date when made.
(f) Opinion of Counsel. The Administrative Agent shall have received an
opinion, addressed to the Administrative Agent and each of the Lenders and dated
the Closing Date, from Xxxxxxx X. Xxxxxxx, Vice President, Secretary and General
Counsel of the Borrower, substantially in the form of Exhibit D-1 hereto and
covering such other matters incident to the transactions contemplated hereby as
the Administrative Agent may reasonably request, such opinion to be in form and
substance satisfactory to the Administrative Agent.
(g) Solvency Certificate. The Administrative Agent shall have received, in
sufficient quantities for the Lenders, a duly executed solvency certificate
substantially in the form attached hereto as Exhibit D-2 and such certificate
shall be satisfactory in form and substance to each of the Lenders.
(h) Existing Credit Facilities. Contemporaneously with the Closing Date,
the Borrower shall have terminated its existing credit facilities with Mellon
Bank and prepaid all borrowings thereunder.
-51-
(i) Proceedings and Documents. All corporate and other proceedings and all
documents incidental to the transactions contemplated hereby shall be
satisfactory in substance and form to the Administrative Agent and the Lenders
and the Administrative Agent and its special counsel and the Lenders shall have
received all such counterpart originals or certified or other copies of such
documents as the Administrative Agent or its special counsel or any Lender may
reasonably request.
(j) No Disruption of Financial and Capital Markets. There shall not have
occurred and be continuing a material disruption of or material adverse change
in the financial, banking, or capital markets that would have an adverse effect
on the syndication of credit facilities similar in nature to this Agreement, as
determined by the Administrative Agent in its reasonable discretion.
(k) Evidence of Insurance. The Administrative Agent shall have received
copies of certificates of insurance and other evidence, satisfactory to it, of
compliance with the insurance requirements of this Agreement.
(l) Search Reports. The Administrative Agent shall have received completed
search reports from one or more commercial search firms acceptable to the
Administrative Agent, listing all of the effective financing statements filed
against the Borrower and any of its Domestic Subsidiaries in any jurisdiction in
which the Borrower or any of its Domestic Subsidiaries is organized, maintains a
chief executive office or in which any property is owned or leased by the
Borrower or any of its Domestic Subsidiaries, together with copies of such
financing statements.
(m) Absence of Litigation. There shall not be any action, suits or
proceedings pending or threatened with respect to the Borrower or its
Subsidiaries; (i) that have, or could reasonably be expected to have, a Material
Adverse Effect; or (ii) that question the validity or enforceability of any of
the Credit Documents, or of any action to be taken by the Borrower pursuant to
any of the Credit Documents.
(n) Due Diligence. The Administrative Agent shall be reasonably satisfied
in all respects with the results of its due diligence investigation of the
Borrower and its Subsidiaries.
7.2. Conditions Precedent to All Loans. The obligation of the Lenders to
make each Loan is subject, at the time thereof, to the satisfaction of the
following conditions:
(a) Notice of Borrowing, etc. The Administrative Agent shall have received
a Notice of Borrowing meeting the requirements of section 2.3 with respect to
the incurrence of Loans.
(b) No Default; Representations and Warranties. At the time of such Loan
and also after giving effect thereto: (i) there shall exist no Default or Event
of Default; and (ii) all representations and warranties of the Borrower
contained herein or in the other Credit Documents shall be true and correct in
all material respects with the same effect as though such representations and
warranties had been made on and as of the date of such Loan, except to the
extent that such representations and warranties expressly relate to an earlier
specified date, in which case such representations and warranties shall have
been true and correct in all material respects as of the date when made.
The acceptance of the benefits of each Loan shall constitute a representation
and warranty by the Borrower to each of the Lenders that all of the applicable
conditions specified in section 7.1 and/or 7.2, as the case may be, exist as of
that time. All of the certificates, legal opinions and other documents and
papers referred to in this section 7, unless otherwise specified, shall be
delivered to the Administrative Agent for the account of each of the Lenders
and, except for the Notes, in sufficient counterparts for each of the Lenders,
and the Administrative Agent will promptly distribute to the Lenders their
respective Notes and copies of such other certificates, legal opinions and
documents.
-52-
SECTION 8. REPRESENTATIONS AND WARRANTIES.
In order to induce the Lenders to enter into this Agreement and to make the
Loans provided for herein, the Borrower makes the following representations and
warranties to, and agreements with, the Lenders, all of which shall survive the
execution and delivery of this Agreement and the making of each Loan:
8.1. Corporate Status, etc. Each of the Borrower and its Subsidiaries: (i)
is a duly organized or formed and validly existing corporation, partnership or
limited liability company, as the case may be, in good standing under the laws
of the jurisdiction of its formation and has the corporate, partnership or
limited liability company power and authority, as applicable, to own its
property and assets and to transact the business in which it is engaged and
presently proposes to engage; and (ii) has duly qualified and is authorized to
do business in all jurisdictions where it is required to be so qualified except
where the failure to be so qualified would not have a Material Adverse Effect.
8.2. Subsidiaries. Annex II hereto lists, as of the date hereof, each
Subsidiary of the Borrower (and the direct and indirect ownership interest of
the Borrower therein).
8.3. Corporate Power and Authority, etc. The Borrower has the corporate
power and authority to execute, deliver and carry out the terms and provisions
of the Credit Documents to which it is party and has taken all necessary
corporate action to authorize the execution, delivery and performance of the
Credit Documents to which it is party. The Borrower has duly executed and
delivered each Credit Document to which it is party and each Credit Document to
which it is party constitutes the legal, valid and binding agreement or
obligation of the Borrower enforceable in accordance with its terms, except to
the extent that the enforceability thereof may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
generally affecting creditors' rights and by equitable principles (regardless of
whether enforcement is sought in equity or at law).
8.4. No Violation. Neither the execution, delivery and performance by the
Borrower of the Credit Documents to which it is party nor compliance with the
terms and provisions thereof: (i) will contravene any provision of any law,
statute, rule, regulation, order, writ, injunction or decree of any court or
governmental instrumentality applicable to the Borrower or its properties and
assets; (ii) will conflict with or result in any breach of, any of the terms,
covenants, conditions or provisions of, or constitute a default under, or result
in the creation or imposition of (or the obligation to create or impose) any
Lien upon any of the property or assets of the Borrower pursuant to the terms of
any promissory note, bond, debenture, indenture, mortgage, deed of trust, credit
or loan agreement, or any other material agreement or other instrument, to which
the Borrower is a party or by which it or any of its property or assets are
bound or to which it may be subject; or (iii) will violate any provision of the
articles of incorporation or bylaws of the Borrower.
8.5. Governmental Approvals. No order, consent, approval, license,
authorization, or validation of, or filing, recording or registration with, or
exemption by, any foreign or domestic governmental or public body or authority,
or any subdivision thereof, is required to authorize or is required as a
condition to: (i) the execution, delivery and performance by the Borrower of any
Credit Document to which it is a party; or (ii) the legality, validity, binding
effect or enforceability of any Credit Document to which the Borrower is a
party.
8.6. Litigation. There are no actions, suits or proceedings pending or, to,
the knowledge of the Borrower, threatened with respect to the Borrower or any of
its Subsidiaries: (i) that have, or could reasonably be expected to have, a
Material Adverse Effect; or (ii) that question the validity or enforceability of
any of the Credit Documents, or of any action to be taken by the Borrower
pursuant to any of the Credit Documents to which it is a party.
-53-
8.7. Use of Proceeds; Margin Regulations. (a) The proceeds of all Loans
shall be utilized in order to refinance indebtedness of the Borrower, provide
working capital and funds for capital expenditures and other general corporate
purposes, consummate Permitted Acquisitions or obtain Letters of Credit as
permitted hereunder.
(b) No part of the proceeds of any Loan will be used directly or indirectly
to purchase or carry Margin Stock, or to extend credit to others for the purpose
of purchasing or carrying any Margin Stock, in violation of any of the
provisions of Regulation T, U or X of the Board of Governors of the Federal
Reserve System. The Borrower is not engaged in the business of extending credit
for the purpose of purchasing or carrying any Margin Stock. At no time would
more than 25% of the value of the assets of the Borrower or of the Borrower and
its consolidated Subsidiaries that are subject to any "arrangement" (as such
term is used in section 221.2(g) of such Regulation U) hereunder be represented
by Margin Stock.
8.8. Financial Statements, etc. (a) The Borrower has furnished to the
Lenders and the Administrative Agent complete and correct copies of (i) the
audited consolidated balance sheets of the Borrower and its consolidated
subsidiaries as of the end of its fiscal year ended on or nearest to December
31, 2001, and the related audited consolidated statements of income,
stockholders' equity, and cash flows for the fiscal year then ended, accompanied
by the unqualified report thereon of the Borrower's independent accountants;
(ii) the unaudited condensed consolidated balance sheets of the Borrower and its
consolidated subsidiaries as of September 30, 2002 and the related unaudited
condensed consolidated statements of income and of cash flows of the Borrower
and its consolidated subsidiaries for the fiscal quarter or quarters then ended,
as contained in the Form 10-Q Quarterly Report of the Borrower filed with the
SEC for such fiscal quarter; and (iii) the unaudited condensed consolidated
balance sheets of the Borrower and its consolidated subsidiaries as of December
31, 2002 and the related unaudited condensed consolidated statements of income
and of cash flows of the Borrower and its consolidated subsidiaries for the
fiscal year then ended. All such financial statements have been prepared in
accordance with GAAP, consistently applied (except as stated therein), and
fairly present the financial position of the Borrower and its consolidated
subsidiaries as of the respective dates indicated and the consolidated results
of their operations and cash flows for the respective periods indicated, subject
in the case of any such financial statements that are unaudited, to normal audit
adjustments, none of which will involve a Material Adverse Effect.
(b) The Borrower has delivered or caused to be delivered to the Lenders
prior to the execution and delivery of this Agreement: (i) a copy of the
Borrower's Report on Form 10-K as filed (without Exhibits) with the SEC for its
fiscal year ended on or nearest to December 31, 2001, that contains a general
description of the business and affairs of the Borrower and its Subsidiaries;
and (ii) financial projections prepared by management of the Borrower for the
Borrower and its Subsidiaries for the fiscal years 2003-2005 (the "Financial
Projections"). The Financial Projections were prepared on behalf of the Borrower
in good faith after taking into account the existing and historical levels of
business activity of the Borrower and its Subsidiaries, known trends, including
general economic trends, and all other information, assumptions and estimates
considered by management of the Borrower and its Subsidiaries to be pertinent
thereto. The Financial Projections were considered by management of the
Borrower, as of such date of preparation, to be realistically achievable;
provided, that no representation or warranty is made as to the impact of future
general economic conditions or as to whether the Borrower's projected
consolidated results as set forth in the Financial Projections will actually be
realized. No facts are known to the Borrower at the date hereof that, if
reflected in the Financial Projections, would result in a material adverse
change in the assets, liabilities, results of operations or cash flows reflected
therein.
8.9. No Material Adverse Change. Except as reflected in the financial
statements delivered pursuant to section 8.8(a) hereof, since December 31, 2001,
there has been no change in the condition, business or affairs of the Borrower
and its Subsidiaries taken as a whole, or their properties and assets
-54-
considered as an entirety, except for changes, none of which, individually or in
the aggregate, has had or could reasonably be expected to have, a Material
Adverse Effect.
8.10. Tax Returns and Payments. Each of the Borrower and each of its
Subsidiaries has filed all federal income tax returns and all other material tax
returns, domestic and foreign, required to be filed by it and has paid all
material taxes and assessments payable by it that have become due, other than
those not yet delinquent and except for those contested in good faith. The
Borrower and each of its Subsidiaries has established on its books such charges,
accruals and reserves in respect of taxes, assessments, fees and other
governmental charges for all fiscal periods as are required by GAAP. The
Borrower knows of no proposed assessment for additional federal, foreign or
state taxes for any period, or of any basis therefor, that, individually or in
the aggregate, taking into account such charges, accruals and reserves in
respect thereof as the Borrower and its Subsidiaries have made, could reasonably
be expected to have a Material Adverse Effect.
8.11. Title to Properties, etc. The Borrower and each of its Subsidiaries
has good and marketable title, in the case of real property, and good title (or
valid Leaseholds, in the case of any leased property), in the case of all other
property, to all of its properties and assets free and clear of Liens other than
Liens permitted by section 10.3. The interests of the Borrower and each of its
Subsidiaries in the properties reflected in the most recent balance sheet
referred to in section 8.8, taken as a whole, were sufficient, in the judgment
of the Borrower, as of the date of such balance sheet for purposes of the
ownership and operation of the businesses conducted by the Borrower and such
Subsidiaries.
8.12. Lawful Operations, etc. The Borrower and each of its Subsidiaries:
(i) holds all necessary federal, state and local governmental licenses,
registrations, certifications, permits and authorizations necessary to conduct
its business; and (ii) is in full compliance with all material requirements
imposed by law, regulation or rule, whether federal, state or local, that are
applicable to it, its operations, or its properties and assets, including
without limitation, applicable requirements of Environmental Laws, except for
any failure to obtain and maintain in effect, or noncompliance, that,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.
8.13. Environmental Matters. (a) The Borrower and each of its Subsidiaries
is in compliance with all Environmental Laws governing its business, except to
the extent that any such failure to comply (together with any resulting
penalties, fines or forfeitures) would not reasonably be expected to have a
Material Adverse Effect. All licenses, permits, registrations or approvals
required for the conduct of the business of the Borrower and each of its
Subsidiaries under any Environmental Law have been secured and the Borrower and
each of its Subsidiaries is in substantial compliance therewith, except for such
licenses, permits, registrations or approvals the failure to secure or to comply
therewith is not reasonably likely to have a Material Adverse Effect. Neither
the Borrower nor any of its Subsidiaries has received written notice, or
otherwise knows, that it is in any respect in noncompliance with, breach of or
default under any applicable writ, order, judgment, injunction, or decree to
which the Borrower or such Subsidiary is a party or that would affect the
ability of the Borrower or such Subsidiary to operate any Real Property and no
event has occurred and is continuing that, with the passage of time or the
giving of notice or both, would constitute noncompliance, breach of or default
thereunder, except in each such case, such noncompliance, breaches or defaults
as would not reasonably be expected to, in the aggregate, have a Material
Adverse Effect. There are no Environmental Claims pending or, to the best
knowledge of the Borrower, threatened wherein an unfavorable decision, ruling or
finding would reasonably be expected to have a Material Adverse Effect. There
are no facts, circumstances, conditions or occurrences on any Real Property now
or at any time owned, leased or operated by the Borrower or any of its
Subsidiaries or on any property adjacent to any such Real Property, that are
known by the Borrower or as to which the Borrower or any such Subsidiary has
received written notice, that could reasonably be expected: (i) to form the
basis of an Environmental Claim against the Borrower or any of its Subsidiaries
or any Real Property of the Borrower or any of its Subsidiaries; or (ii) to
cause such Real Property to be subject to any
-55-
restrictions on the ownership, occupancy, use or transferability of such Real
Property under any Environmental Law, except in each such case, such
Environmental Claims or restrictions that individually or in the aggregate would
not reasonably be expected to have a Material Adverse Effect.
(b) Hazardous Materials have not at any time been: (i) generated, used,
treated or stored on, or transported to or from, any Real Property of the
Borrower or any of its Subsidiaries; or (ii) released on any such Real Property,
in each case where such occurrence or event is not in compliance with
Environmental Laws and is reasonably likely to have a Material Adverse Effect.
8.14. Compliance with ERISA. Compliance by the Borrower with the provisions
hereof and Loans contemplated hereby will not involve any prohibited transaction
within the meaning of ERISA or section 4975 of the Code. The Borrower and each
of its Subsidiaries: (i) has fulfilled all obligations under minimum funding
standards of ERISA and the Code with respect to each Plan that is not a
Multiemployer Plan or a Multiple Employer Plan; (ii) has satisfied all
respective contribution obligations in respect of each Multiemployer Plan and
each Multiple Employer Plan; (iii) is in compliance in all material respects
with all other applicable provisions of ERISA and the Code with respect to each
Plan, each Multiemployer Plan and each Multiple Employer Plan; and (iv) has not
incurred any liability under the Title IV of ERISA to the PBGC with respect to
any Plan, any Multiemployer Plan, any Multiple Employer Plan, or any trust
established thereunder, except for PBGC premiums in the ordinary course. No Plan
or trust created thereunder has been terminated, and there have been no
Reportable Events, with respect to any Plan or trust created thereunder or with
respect to any Multiple Employer Plan, which termination or Reportable Event
will or could result in the termination of such Plan or Multiple Employer Plan
and give rise to a material liability of the Borrower or any ERISA Affiliate in
respect thereof. Neither the Borrower nor any ERISA Affiliate is at the date
hereof, or has been at any time within the two years preceding the date hereof,
an employer required to contribute to any Multiemployer Plan or Multiple
Employer Plan, or a "contributing sponsor" (as such term is defined in section
4001 of ERISA) in any Multiemployer Plan or Multiple Employer Plan. Neither the
Borrower nor any ERISA Affiliate has any contingent liability with respect to
any post-retirement "welfare benefit plan" (as such term is defined in ERISA)
except as disclosed on Annex IX hereto.
8.15. Intellectual Property, etc. The Borrower and each of its Subsidiaries
has obtained or has the right to use all material patents, trademarks,
servicemarks, trade names, copyrights, licenses and other rights with respect to
the foregoing necessary for the present and planned future conduct of its
business, without any known conflict with the rights of others, except for such
patents, trademarks, servicemarks, trade names, copyrights, licenses and rights,
the loss of which, and such conflicts, that in any such case individually or in
the aggregate would not reasonably be expected to have a Material Adverse
Effect.
8.16. Investment Company Act, etc. Neither the Borrower nor any of its
Subsidiaries is subject to regulation with respect to the creation or incurrence
of Indebtedness under the Investment Company Act of 1940, as amended, the
Interstate Commerce Act, as amended, the Federal Power Act, as amended, the
Public Utility Holding Company Act of 1935, as amended, or any applicable state
public utility law.
8.17. Burdensome Contracts; Labor Relations. Neither the Borrower nor any
of its Subsidiaries; (i) is subject to any burdensome contract, agreement,
corporate restriction, judgment, decree or order; (ii) is a party to any labor
dispute affecting any bargaining unit or other group of employees generally;
(iii) is subject to any material strike, slow down, workout or other concerted
interruptions of operations by employees of the Borrower or any Subsidiary,
whether or not relating to any labor contracts; (iv) is subject to any
significant pending or, to the knowledge of the Borrower, threatened, unfair
labor practice complaint, before the National Labor Relations Board; and (v) is
subject to any significant pending or, to the knowledge of the Borrower,
threatened, grievance or significant
-56-
arbitration proceeding arising out of or under any collective bargaining
agreement; (vi) is subject to any significant pending or, to the knowledge of
the Borrower, threatened, significant strike, labor dispute, slowdown or
stoppage; or (vii) is, to the knowledge of the Borrower, involved or subject to
any union representation organizing or certification matter with respect to the
employees of the Borrower or any of its Subsidiaries, except (with respect to
any matter specified in any of the above clauses), for such matters as,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.
8.18. Existing Indebtedness. Annex III sets forth a true and complete list,
as of the date or dates set forth therein, of all Indebtedness of the Borrower
and each of its Subsidiaries, on a consolidated basis, that: (i) has an
outstanding principal amount of at least $1,000,000, or may be incurred pursuant
to existing commitments or lines of credit; or (ii) is secured by any Lien on
any property of the Borrower or any Subsidiary, and that will be outstanding on
the Closing Date after giving effect to the initial Borrowing hereunder, other
than the Indebtedness created under the Credit Documents (all such Indebtedness,
whether or not in a principal amount meeting such threshold and required to be
so listed on Annex III, herein the "Existing Indebtedness"). As and to the
extent the Administrative Agent has so requested, the Borrower has provided to
the Administrative Agent prior to the date of execution hereof true and complete
copies (or summary descriptions) of all agreements and instruments governing the
Indebtedness listed on Annex III (the "Existing Indebtedness Agreements").
8.19. True and Complete Disclosure. All factual information (taken as a
whole) heretofore or contemporaneously furnished by or on behalf of the Borrower
or any of its Subsidiaries in writing to the Administrative Agent or any Lender
for purposes of or in connection with this Agreement or any transaction
contemplated herein, other than the Financial Projections (as to which
representations are made only as provided in section 8.8), is, and all other
such factual information (taken as a whole) hereafter furnished by or on behalf
of such person in writing to any Lender will be, true and accurate in all
material respects on the date as of which such information is dated or certified
and not incomplete by omitting to state any material fact necessary to make such
information (taken as a whole) not misleading at such time in light of the
circumstances under which such information was provided, except that any such
future information consisting of financial projections prepared by management of
the Borrower is only represented herein as being based on good faith estimates
and assumptions believed by such persons to be reasonable at the time made, it
being recognized by the Lenders that such projections as to future events are
not to be viewed as facts and that actual results during the period or periods
covered by any such projections may differ materially from the projected
results. As of the Effective Date, there is no fact known to the Borrower or any
of its Subsidiaries that has, or could reasonably be expected to have, a
Material Adverse Effect that has not theretofore been disclosed in writing to
the Lenders.
8.20. Insurance. The Borrower and each of its Subsidiaries maintains
insurance coverage by such insurers and in such forms and amounts and against
such risks as are generally consistent with industry standards.
SECTION 9. AFFIRMATIVE COVENANTS.
The Borrower hereby covenants and agrees that so long as this Agreement is
in effect and until such time as the Total Commitment has been terminated, no
Notes are outstanding and the Loans, together with interest, Fees and all other
Obligations hereunder, have been paid in full:
9.1. Reporting Requirements. The Borrower will furnish to each Lender and
the Administrative Agent:
(a) Annual Financial Statements. As soon as available and in any event
within 90 days after the close of each fiscal year of the Borrower, a Form 10-K,
including the consolidated and consolidating balance sheets of the Borrower and
its consolidated Subsidiaries as at the end of such fiscal
-57-
x
year and the related consolidated statements of income, of stockholder's equity
and of cash flows for such fiscal year, in each case setting forth comparative
figures for the preceding fiscal year, all in reasonable detail and accompanied
by the opinion with respect to such consolidated financial statements of
independent public accountants of recognized national standing selected by the
Borrower, which opinion shall be unqualified and shall: (i) state that such
accountants audited such consolidated financial statements in accordance with
generally accepted auditing standards, that such accountants believe that such
audit provides a reasonable basis for their opinion, and that in their opinion
such consolidated financial statements present fairly, in all material respects,
the consolidated financial position of the Borrower and its consolidated
subsidiaries as at the end of such fiscal year and the consolidated results of
their operations and cash flows for such fiscal year in conformity with
generally accepted accounting principles; or (ii) contain such statements as are
customarily included in unqualified reports of independent accountants in
conformity with the recommendations and requirements of the American Institute
of Certified Public Accountants (or any successor organization); provided, that
the delivery to the SEC within the time period specified above of the Borrower's
Annual Report on Form 10-K for such fiscal year (together with the Borrower's
annual report to shareholders, if any, prepared pursuant to Rule 14a-3 under the
0000 Xxx) prepared in accordance with the requirements therefor and filed with
the SEC shall be deemed to satisfy the requirements of this section 9.1(a) so
long as a copy thereof is forwarded to the Administrative Agent by the Borrower
promptly upon completion.
(b) Quarterly Financial Statements. For the first three quarters of each
fiscal year, as soon as available and in any event within 45 days after the
close of each of the applicable quarterly accounting periods in each fiscal year
of the Borrower, a Form 10-Q, together with the unaudited consolidated and
consolidating balance sheets of the Borrower and its consolidated Subsidiaries
as at the end of such quarterly period and the related unaudited condensed
consolidated statements of income and of cash flows for such quarterly period,
and setting forth, in the case of such unaudited consolidated statements of
income and of cash flows, comparative figures for the related periods in the
prior fiscal year; provided, that the delivery to the SEC within the time period
specified above of the Borrower's 10-Q for such fiscal quarter prepared in
accordance with the requirements therefor and filed with the SEC shall be deemed
to satisfy the requirements of this section 9.1(b) so long as a copy thereof is
forwarded to the Administrative Agent by the Borrower promptly upon completion.
(c) Officer's Compliance Certificates. At the time of the delivery of the
financial statements provided for in sections 9.1(a) and (b), a certificate on
behalf of the Borrower of the Chief Financial Officer, Chief Executive Officer
or President of the Borrower to the effect that, to the best knowledge of the
Borrower, no Default or Event of Default exists or, if any Default or Event of
Default does exist, specifying the nature and extent thereof, which certificate
shall set forth the calculations required to establish compliance with the
provisions of sections 10.4(c), 10.5 and 10.6 through 10.10, inclusive of this
Agreement, including an identification of the amounts of any financial items of
persons or business units acquired by the Borrower for any periods prior to the
date of acquisition that are used in making such calculations.
(d) Budgets and Forecasts. Not later than 45 days after the commencement of
each fiscal year of the Borrower, a consolidated budget in reasonable detail for
such entire fiscal year and for each of the fiscal quarters in such fiscal year,
and (if and to the extent prepared by management of the Borrower) for any
subsequent fiscal years, as customarily prepared by management for its internal
use, setting forth, with appropriate discussion, the forecasted balance sheet,
income statement, operating cash flows and capital expenditures of the Borrower
and its Subsidiaries for the period or periods covered thereby, and the
principal assumptions upon which forecasts and budget are based.
(e) Auditors' Internal Control Comment Letters, etc. Promptly upon receipt
thereof, notice to the Administrative Agent thereof, and upon request by the
Administrative Agent, a copy of each letter or memorandum commenting on internal
accounting controls and/or accounting or financial
-58-
reporting policies followed by the Borrower and/or any of its Subsidiaries, that
is submitted to the Borrower by its independent accountants in connection with
any annual or interim audit made by them of the books of the Borrower or any of
its Subsidiaries.
(f) Notice of Default or Litigation. Promptly, and in any event within
three Business Days, in the case of clause (i) below, or five Business Days, in
the case of clause (ii) below, after the Borrower or any of its Subsidiaries
obtains knowledge thereof, notice of:
(i) the occurrence of any event that constitutes a Default or Event of
Default, which notice shall specify the nature thereof, the period of
existence thereof and what action the Borrower proposes to take with
respect thereto; and
(ii) any litigation or governmental or regulatory investigation or
proceeding pending against or involving the Borrower or any of its
Subsidiaries that could reasonably be expected to have a Material Adverse
Effect.
(g) ERISA. Promptly, and in any event within 10 days after the Borrower,
any Subsidiary of the Borrower or any ERISA Affiliate knows of the occurrence of
any of the following, the Borrower will deliver to each of the Lenders a
certificate on behalf of the Borrower of an Authorized Officer of the Borrower
setting forth the full details as to such occurrence and the action, if any,
that the Borrower, such Subsidiary or such ERISA Affiliate is required or
proposes to take, together with any notices required or proposed to be given to
or filed with or by the Borrower, the Subsidiary, the ERISA Affiliate, the PBGC,
a Plan participant or the Plan administrator with respect thereto:
(i) that a Reportable Event has occurred with respect to any Plan;
(ii) the institution of any steps by the Borrower, any ERISA
Affiliate, the PBGC or any other person to terminate any Plan;
(iii) the institution of any steps by the Borrower or any ERISA
Affiliate to withdraw from any Plan;
(iv) the institution of any steps by the Borrower or any Subsidiary to
withdraw from any Multiemployer Plan or Multiple Employer Plan, if such
withdrawal could result in withdrawal liability (as described in Part 1 of
Subtitle E of Title IV of ERISA) in excess of $5,000,000;
(v) a non-exempt "prohibited transaction" within the meaning of
section 406 of ERISA in connection with any Plan;
(vi) that a Plan has an Unfunded Current Liability exceeding
$40,000,000;
(vii) any material increase in the contingent liability of the
Borrower or any Subsidiary with respect to any post-retirement welfare
liability; or
(viii) the taking of any action by, or the threatening of the taking
of any action by, the Internal Revenue Service, the Department of Labor or
the PBGC with respect to any of the foregoing.
(h) Environmental Matters. Promptly upon, and in any event within 10
Business Days after, an officer of the Borrower obtains actual knowledge
thereof, notice of any of the following environmental matters that involves any
reasonable likelihood (in the Borrower's reasonable judgment) of
-59-
resulting in a Material Adverse Effect: (i) any pending or threatened (in
writing) Environmental Claim against the Borrower or any of its Subsidiaries or
any Real Property owned or operated by the Borrower or any of its Subsidiaries;
(ii) any condition or occurrence on or arising from any Real Property owned or
operated by the Borrower or any of its Subsidiaries that (A) results in
noncompliance by the Borrower or any of its Subsidiaries with any applicable
Environmental Law or (B) would reasonably be expected to form the basis of an
Environmental Claim against the Borrower or any of its Subsidiaries or any such
Real Property; (iii) any condition or occurrence on any Real Property owned,
leased or operated by the Borrower or any of its Subsidiaries that could
reasonably be expected to cause such Real Property to be subject to any
restrictions on the ownership, occupancy, use or transferability by the Borrower
or any of its Subsidiaries of such Real Property under any Environmental Law;
and (iv) the taking of any removal or remedial action in response to the actual
or alleged presence of any Hazardous Material on any Real Property owned, leased
or operated by the Borrower or any of its Subsidiaries as required by any
Environmental Law or any governmental or other administrative agency. All such
notices shall describe in reasonable detail the nature of the Environmental
Claim and the Borrower's or such Subsidiary's response thereto.
(i) SEC Reports and Registration Statements. Promptly upon transmission
thereof or other filing with the SEC, copies of all registration statements
(other than the exhibits thereto and any registration statement on Form S-8 or
its equivalent) and annual, quarterly or current reports that the Borrower or
any of its Subsidiaries files with the SEC.
(j) Other Information. With reasonable promptness, such other information
or documents (financial or otherwise) relating to the Borrower or any of its
Subsidiaries as any Lender may reasonably request from time to time.
9.2. Books, Records and Inspections. The Borrower will, and will cause each
of its Subsidiaries to: (i) keep proper books of record and account, in which
full and correct entries shall be made of all financial transactions and the
assets and business of the Borrower or such Subsidiaries, as the case may be, in
accordance with GAAP, in the case of the Borrower, or that are reconcilable to a
GAAP presentation, in the case of any Subsidiary; and (ii) permit, upon at least
five Business Days' notice to the Chief Financial Officer or any other
Authorized Officer of the Borrower, officers and designated representatives of
the Administrative Agent or any of the Lenders to visit and inspect any of the
properties or assets of the Borrower and any of its Subsidiaries in whomsoever's
possession (but only to the extent the Borrower or such Subsidiary has the right
to do so to the extent in the possession of another person), and to examine (and
make copies of or take extracts from) the books of account of the Borrower and
any of its Subsidiaries and discuss the affairs, finances and accounts of the
Borrower and of any of its Subsidiaries with, and be advised as to the same by,
its and their officers and independent accountants and independent actuaries, if
any, all at such reasonable times and intervals and to such reasonable extent as
the Administrative Agent or any of the Lenders may request.
9.3. Insurance. The Borrower will, and will cause each of its Subsidiaries
to: (i) maintain insurance coverage by such insurers and in such forms and
amounts and against such risks as are generally consistent with the insurance
coverage maintained by the Borrower and its Subsidiaries at the date hereof; and
(ii) forthwith upon any Lender's written request, furnish to such Lender such
information about such insurance as such Lender may from time to time reasonably
request, which information shall be prepared in form and detail satisfactory to
such Lender and certified by an Authorized Officer of the Borrower.
9.4. Payment of Taxes and Claims. The Borrower will pay and discharge, and
will cause each of its Subsidiaries to pay and discharge, all taxes, assessments
and governmental charges or levies imposed upon it or upon its income or
profits, or upon any properties belonging to it, prior to the date on which
penalties attach thereto, and all lawful claims that, if unpaid, might become a
Lien or charge upon
-60-
any properties of the Borrower or any of its Subsidiaries; provided that neither
the Borrower nor any of its Subsidiaries shall be required to pay any such tax,
assessment, charge, levy or claim that is being contested in good faith and by
proper proceedings if it has maintained adequate reserves with respect thereto
in accordance with GAAP; and provided, further, that the Borrower will not be
considered to be in default of any of the provisions of this sentence if the
Borrower or any Subsidiary fails to pay any such amount that, individually or in
the aggregate, is immaterial to the Borrower and its Subsidiaries considered as
an entirety.
9.5. Corporate Franchises. The Borrower will do, and will cause each of its
Subsidiaries to do, or cause to be done, all things necessary to preserve and
keep in full force and effect its corporate or other organizational existence,
rights, authority and franchises, provided that nothing in this section 9.5
shall be deemed to prohibit: (i) any transaction permitted by section 10.2; (ii)
the termination of existence of any Subsidiary if (A) the Borrower determines
that such termination is in its best interest and (B) such termination is not
adverse in any material respect to the Lenders; or (iii) the loss of any rights,
authorities or franchises if the loss thereof, in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.
9.6. Good Repair. The Borrower will, and will cause each of its
Subsidiaries to, ensure that its material properties and equipment used or
useful in its business in whomsoever's possession they may be, are kept in good
repair, working order and condition, normal wear and tear excepted, and that
from time to time there are made in such properties and equipment all needful
and proper repairs, renewals, replacements, extensions, additions, betterments
and improvements, thereto, to the extent and in the manner customary for
companies in similar businesses.
9.7. Compliance with Statutes, etc. The Borrower will, and will cause each
of its Subsidiaries to, comply, in all material respects, with all applicable
statutes, regulations and orders of, and all applicable restrictions imposed by,
all governmental bodies, domestic or foreign, in respect of the conduct of its
business and the ownership of its property, other than those: (i) being
contested in good faith by appropriate proceedings, as to which adequate
reserves are established to the extent required under GAAP; and (ii) the
noncompliance with which would not have, and that would not be reasonably
expected to have, a Material Adverse Effect.
9.8. Compliance with Environmental Laws. Without limitation of the
covenants contained in section 9.7 hereof:
(a) The Borrower will, and will cause each of its Subsidiaries to: (i)
comply, in all material respects, with all Environmental Laws applicable to the
ownership, lease or use of all Real Property now or hereafter owned, leased or
operated by the Borrower or any of its Subsidiaries, and promptly pay or cause
to be paid all costs and expenses incurred in connection with such compliance,
except for such noncompliance as would not have, and that would not be
reasonably expected to have, a Material Adverse Effect; and (ii) keep or cause
to be kept all such Real Property free and clear of any Liens imposed pursuant
to such Environmental Laws that are not permitted under section 10.3.
(b) Without limitation of the foregoing, if the Borrower or any of its
Subsidiaries shall generate, use, treat, store, release or dispose of, or permit
the generation, use, treatment, storage, release or disposal of, Hazardous
Materials on any Real Property now or hereafter owned, leased or operated by the
Borrower or any of its Subsidiaries, or transport or permit the transportation
of Hazardous Materials to or from any such Real Property, any such action shall
be effected only in the ordinary course of business and in any event in
compliance, in all material respects, with all Environmental Laws applicable
thereto, except for such noncompliance as would not have, and that would not be
reasonably expected to have, a Material Adverse Effect.
-61-
(c) If required to do so under any applicable order of any governmental
agency, the Borrower will undertake, and cause each of its Subsidiaries to
undertake, any clean up, removal, remedial or other action necessary to remove
and clean up any Hazardous Materials from any Real Property owned, leased or
operated by the Borrower or any of its Subsidiaries in accordance with, in all
material respects, the requirements of all applicable Environmental Laws and in
accordance with, in all material respects, such orders of all governmental
authorities, except: (i) to the extent that the Borrower or such Subsidiary is
contesting such order in good faith and by appropriate proceedings and for which
adequate reserves have been established to the extent required by GAAP; or (ii)
for such noncompliance as would not have, and that would not be reasonably
expected to have, a Material Adverse Effect.
9.9. Fiscal Years, Fiscal Quarters. If the Borrower shall change any of its
or any of its Subsidiaries' fiscal years or fiscal quarters (other than the
fiscal year or fiscal quarters of a person that becomes a Subsidiary, made at
the time such person becomes a Subsidiary to conform to the Borrower's fiscal
year and fiscal quarters), the Borrower will promptly, and in any event within
30 days following any such change, deliver a notice to the Administrative Agent
and the Lenders describing such change and any material accounting entries made
in connection therewith and stating whether such change will have any impact
upon any financial computations to be made hereunder, and if any such impact is
foreseen, describing in reasonable detail the nature and extent of such impact.
If the Required Lenders determine that any such change will have any impact upon
any financial computations to be made hereunder that is adverse to the Lenders,
the Borrower will, if so requested by the Administrative Agent, enter into an
amendment to this Agreement, in form and substance reasonably satisfactory to
the Administrative Agent and the Required Lenders, modifying any of the
financial covenants or related provisions hereof in such manner as the Required
Lenders determine is necessary to eliminate such adverse effect.
9.10. Hedge Agreements, etc. In the event the Borrower or any of its
Subsidiaries determines to enter into a Hedge Agreement it may do so with any
Non-Defaulting Lender or any other institution reasonably acceptable to the
Administrative Agent, provided that the purpose of such Hedge Agreement is to
provide protection to the Borrower or any such Subsidiary from fluctuations and
other changes in interest rates and currency exchange rates, as and to the
extent considered reasonably necessary by the Borrower, but without exposing the
Borrower or its Subsidiaries to predominantly speculative risks unrelated to the
amount of assets, Indebtedness or other liabilities intended to be subject to
coverage on a notional basis under all such Hedge Agreements.
9.11. Most Favored Covenant Status. Should the Borrower at any time after
the Effective Date, issue or guarantee any unsecured Indebtedness denominated in
U.S. dollars for money borrowed or represented by bonds, notes, debentures or
similar securities in an aggregate amount exceeding $2,500,000, to any lender or
group of lenders acting in concert with one another, or one or more
institutional investors, pursuant to a loan agreement, credit agreement, note
purchase agreement, indenture, guaranty or other similar instrument, which
agreement, indenture, guaranty or instrument, includes affirmative or negative
business or financial covenants (or any events of default or other type of
restriction that would have the practical effect of any affirmative or negative
business or financial covenant, including, without limitation, any "put" or
mandatory prepayment of such Indebtedness upon the occurrence of a "change of
control") that are applicable to the Borrower, other than those set forth herein
or in any of the other Credit Documents, the Borrower shall promptly so notify
the Administrative Agent and the Lenders and, if the Administrative Agent shall
so request by written notice to the Borrower (after a determination has been
made by the Required Lenders that any of the above-referenced documents or
instruments contain any such provisions, that either individually or in the
aggregate, are more favorable to the holders of such unsecured Indebtedness than
any of the provisions set forth herein), the Borrower, the Administrative Agent
and the Lenders shall promptly amend this Agreement to incorporate some or all
of such provisions, in the discretion of the Administrative Agent and the
Required Lenders, into this Agreement and, to the extent necessary and
reasonably desirable to the Administrative
-62-
Agent and the Required Lenders, into any of the other Credit Documents, all at
the election of the Administrative Agent and the Required Lenders. Except with
respect to those documents set forth on Annex X hereto, the Borrower covenants
and agrees that no later than 30 days after the date hereof, the Borrower shall
have caused any document relating to any Indebtedness that would violate the
provisions of this section 9.11 to be: (a) amended so that such document no
longer violates the provisions of this section 9.11, provided that any such
amendment shall be reasonably satisfactory to the Administrative Agent; or (b)
terminated.
9.12. Senior Debt. The Borrower will at all times ensure that: (a) the
claims of the Lenders in respect of the Obligations of the Borrower will not be
subordinate to, and will in all respects at least rank pari passu with, the
claims of every other senior unsecured creditor of the Borrower; and (b) any
Indebtedness subordinated in any manner to the claims of any other senior
unsecured creditor of the Borrower will be subordinated in like manner to such
claims of the Lenders.
SECTION 10. NEGATIVE COVENANTS.
The Borrower hereby covenants and agrees that on the Effective Date and
thereafter for so long as this Agreement is in effect and until such time as the
Total Commitment has been terminated, no Notes remain outstanding and the Loans,
together with interest, Fees and all other Obligations incurred hereunder, have
been paid in full:
10.1. Changes in Business. Neither the Borrower nor any of its Subsidiaries
will engage in any business if, as a result, the general nature of the business,
taken on a consolidated basis, that would then be engaged in by the Borrower and
its Subsidiaries, would be substantially changed from the business engaged in by
the Borrower and its Subsidiaries on the date hereof.
10.2. Consolidation, Merger, Acquisitions, Asset Sales, etc. The Borrower
will not, and will not permit any Subsidiary to, (1) wind up, liquidate or
dissolve its affairs, (2) enter into any transaction of merger or consolidation,
(3) make or otherwise effect any Acquisition, (4) sell or otherwise dispose of
any of its property or assets outside the ordinary course of business, or
otherwise make or otherwise effect any Asset Sale, or (5) agree to do any of the
foregoing at any future time, except that the following shall be permitted:
(a) Certain Intercompany Mergers, etc. If no Default or Event of Default
shall have occurred and be continuing or would result therefrom:
(i) the merger, consolidation or amalgamation of any Subsidiary of the
Borrower with or into the Borrower, provided the Borrower is the surviving
or continuing or resulting corporation;
(ii) the merger, consolidation or amalgamation of any Subsidiary of
the Borrower with or into another Subsidiary of the Borrower, provided that
the surviving or continuing or resulting corporation is a Wholly-Owned
Subsidiary of the Borrower;
(iii) the liquidation, winding up or dissolution of any Subsidiary of
the Borrower; and
(iv) the transfer or other disposition of any property by the Borrower
to any Wholly-Owned Subsidiary or by any Subsidiary to the Borrower or any
other Wholly-Owned Subsidiary of the Borrower;
-63-
shall each be permitted, if after giving effect thereto at least 60% of the
Consolidated Total Assets (exclusive of intercompany items) of the Borrower
are owned directly by the Borrower and not indirectly through Subsidiaries.
(b) Other Mergers, etc. Involving the Borrower. The Borrower may
consolidate or merge with any other corporation, or sell, transfer or otherwise
dispose of all or substantially all of the property and assets of the Borrower
and its Subsidiaries to any person, if: (i) the surviving, continuing or
resulting corporation of such merger or consolidation (if other than the
Borrower) or the acquiring person unconditionally assumes the obligations of the
Borrower under the Credit Documents pursuant to an assumption agreement in form
and substance reasonably satisfactory to the Required Lenders; (ii) no Event of
Default has occurred and is continuing or would result therefrom; (iii) no
Change of Control would be occasioned thereby; and (iv) if any such merger or
consolidation is entered into for the purpose of effecting an Acquisition, such
Acquisition is permitted by section 10.2(c).
(c) Acquisitions. If no Default or Event of Default shall have occurred and
be continuing or would result therefrom, the Borrower or any Subsidiary may make
any Acquisition that is a Permitted Acquisition, provided that all of the
conditions contained in the definition of the term Permitted Acquisition are
satisfied.
(d) Permitted Dispositions. If no Default or Event of Default shall have
occurred and be continuing or would result therefrom, the Borrower or any of its
Subsidiaries may: (i) consummate any Permitted Disposition; (ii) sell any
property, land or building (including any related receivables or other
intangible assets) to any person that is not a Subsidiary of the Borrower; (iii)
sell the entire capital stock (or other equity interests) and Indebtedness of
any Subsidiary owned by the Borrower or any other Subsidiary to any person that
is not a Subsidiary of the Borrower; (iv) permit any Subsidiary to be merged or
consolidated with a person that is not an Affiliate of the Borrower; or (v)
consummate any other Asset Sale with a person who is not a Subsidiary of the
Borrower; provided that:
(A) the consideration for such transaction (excluding the Permitted
Dispositions) represents fair value (as determined by management of the
Borrower), and at least 90% of such consideration consists of cash;
(B) the cumulative aggregate consideration for all such transactions
(excluding the Permitted Dispositions) completed during any fiscal year
does not exceed $7,500,000;
(C) in the case of any such transaction involving consideration in
excess of $1,500,000, at least five Business Days prior to the date of
completion of such transaction the Borrower shall have delivered to the
Administrative Agent an officer's certificate executed on behalf of the
Borrower by an Authorized Officer of the Borrower, which certificate shall
contain: (1) a description of the proposed transaction, the date such
transaction is scheduled to be consummated, the estimated purchase price or
other consideration for such transaction; (2) a certification that the
Borrower would, after giving effect to such transaction, be in compliance,
on a pro forma basis, with the financial covenants contained in sections
10.7, 10.8, 10.9 and 10.10, such pro forma ratios being determined as if
such transaction had been completed at the beginning of the most recent
period of four consecutive fiscal quarters of the Borrower; (3) a
certification that no Default or Event of Default has occurred and is
continuing, or would result from consummation of such transaction; and (4)
if requested by the Administrative Agent, a certified copy of the draft or
definitive documentation pertaining thereto;
(D) contemporaneously with the completion of such transaction the
Borrower prepays its Loans as and to the extent required by section 6.2
hereof; and
-64-
provided, further, that sales or other dispositions of obsolete, worn out
or surplus equipment or fixtures may be effected at any time in the
ordinary course of business without compliance with the above provisions
and the amount of any such sales or other dispositions shall be excluded
from any computations under this section 10.2(d).
(e) Leases. The Borrower or any of its Subsidiaries may enter into leases
of property or assets not constituting Acquisitions, provided such leases are
not otherwise in violation of this Agreement.
(f) Capital Expenditures: The Borrower and it Subsidiaries shall be
permitted to make Consolidated Capital Expenditures associated with the
reactivation of the Gulf Coast facility located in DeQuincy, Louisiana in an
cumulative aggregate amount not to exceed $22,500,000, plus Consolidated Capital
Expenditures in any fiscal year in amount not to exceed $20,000,000 (excluding
any Consolidated Capital Expenditures made with the Net Cash Proceeds from any
Event of Loss to the extent used to repair, rebuild or replace such assets with
assets similar to those assets that were the subject of such Event of Loss);
provided that in no event shall the sum of all Consolidated Capital Expenditures
made by the Borrower and its Subsidiaries exceed $30,000,000 in any fiscal year.
(g) Permitted Investments. The Borrower and it Subsidiaries shall be
permitted to make the investments permitted pursuant to section 10.5.
10.3. Liens. The Borrower will not, and will not permit any of its
Subsidiaries to, create, incur, assume or suffer to exist any Lien upon or with
respect to any property or assets of any kind (real or personal, tangible or
intangible) of the Borrower or any such Subsidiary whether now owned or
hereafter acquired, or sell any such property or assets subject to an
understanding or agreement, contingent or otherwise, to repurchase such property
or assets (including sales of accounts receivable or notes with or without
recourse to the Borrower or any of its Subsidiaries, other than for purposes of
collection of delinquent accounts in the ordinary course of business) or assign
any right to receive income, or file or permit the filing of any financing
statement under the UCC or any other similar notice of Lien under any similar
recording or notice statute, except that the foregoing restrictions shall not
apply to:
(a) Standard Permitted Liens: the Standard Permitted Liens;
(b) Existing Liens, etc.: Liens: (i) in existence on the Effective Date
that are listed, and the Indebtedness secured thereby and the property subject
thereto on the Effective Date described, in Annex IV; or (ii) arising out of the
refinancing, extension, renewal or refunding of any Indebtedness secured by any
such Liens, provided that the principal amount of such Indebtedness is not
increased and such Indebtedness is not secured by any additional assets;
(c) Purchase Money Liens: Liens: (i) that are placed upon fixed or capital
assets, acquired, constructed or improved by the Borrower or any Subsidiary,
provided that (A) such Liens secure Indebtedness permitted by section 10.4(c),
(B) such Liens and the Indebtedness secured thereby are incurred prior to or
within 90 days after such acquisition or the completion of such construction or
improvement, (C) the Indebtedness secured thereby does not exceed 100% of the
cost of acquiring, constructing or improving such fixed or capital assets; and
(D) such Liens shall not apply to any other property or assets of the Borrower
or any Subsidiary; or (ii) arising out of the refinancing, extension, renewal or
refunding of any Indebtedness secured by any such Liens, provided that the
principal amount of such Indebtedness is not increased and such Indebtedness is
not secured by any additional assets; and
(d) Liens on Acquired Properties: any Lien: (i) existing on any property or
asset prior to the acquisition thereof by the Borrower or any Subsidiary, or
existing on any property or asset of any person that becomes a Subsidiary after
the date hereof prior to the time such person becomes a
-65-
Subsidiary; provided that (A) such Lien secures Indebtedness permitted by
section 10.4(c), (B) such Lien is not created in contemplation of or in
connection with such acquisition or such person becoming a Subsidiary, as the
case may be, (C) such Lien shall not attach or apply to any other property or
assets of the Borrower or any Subsidiary, and (D) such Lien shall secure only
those obligations that it secures on the date of such acquisition or the date
such person becomes a Subsidiary, as the case may be; or (ii) arising out of the
refinancing, extension, renewal or refunding of any Indebtedness secured by any
such Liens, provided that the principal amount of such Indebtedness is not
increased and such Indebtedness is not secured by any additional assets.
10.4. Indebtedness. The Borrower will not, and will not permit any of its
Subsidiaries to, contract, create, incur, assume or suffer to exist any
Indebtedness of the Borrower or any of its Subsidiaries, except:
(a) Credit Documents: Indebtedness incurred under this Agreement and the
other Credit Documents;
(b) Existing Indebtedness: Existing Indebtedness and any refinancing,
extension, renewal or refunding of any such Existing Indebtedness not involving
an increase in the principal amount thereof or a reduction in the remaining
weighted average life to maturity thereof (computed in accordance with standard
financial practice).
(c) Certain Priority Debt: to the extent not permitted by the foregoing
clauses:
(i) Indebtedness consisting of Capital Lease Obligations of the
Borrower and its Subsidiaries;
(ii) Indebtedness consisting of obligations under Synthetic Leases of
the Borrower and its Subsidiaries;
(iii) Indebtedness secured by a Lien referred to in section 10.3(c) or
10.3(d); and
(iv) any refinancing, extension, renewal or refunding of any such
Indebtedness not involving an increase in the principal amount thereof or a
reduction in the remaining weighted average life to maturity thereof
(computed in accordance with standard financial practice);
provided that: (A) at the time of any incurrence thereof after the date
hereof, and after giving effect thereto, the Borrower would be in
compliance with sections 10.7 and 10.8, and no Event of Default shall have
occurred and be continuing or would result therefrom; and (B) the aggregate
outstanding principal amount (using Capitalized Lease Obligations in lieu
of principal amount, in the case of any Capital Lease, and using the
present value, based on the implicit interest rate, in lieu of principal
amount, in the case of any Synthetic Lease) of Indebtedness permitted by
this clause (c), when taken together with any outstanding Indebtedness
permitted by clause (b) above that is represented by a Capital Lease or a
Synthetic Lease or that is secured by any Lien referred to in section
10.3(c) or (d), shall not exceed $5,000,000 at any time;
(d) Intercompany Debt: the following: (i) unsecured Indebtedness of the
Borrower owed to any of its Subsidiaries, provided such Indebtedness constitutes
Subordinated Indebtedness; and (ii) unsecured Indebtedness of any of the
Borrower's Subsidiaries to the Borrower or to another Subsidiary of the
Borrower, provided that in the case of this subclause (ii), after giving effect
thereto, at least 60% of the Consolidated Total Assets (exclusive of
intercompany items) of the Borrower are owned directly by the Borrower and not
indirectly through Subsidiaries;
-66-
(e) Hedge Agreements: Indebtedness of the Borrower and its Subsidiaries
under Hedge Agreements;
(f) Guaranty Obligations: any Guaranty Obligations permitted by section
10.5;
(g) Additional Unsecured Debt of the Borrower: additional unsecured
Indebtedness of the Borrower, whether pursuant to any sale or issuance of debt
securities by the Borrower in a Rule 144A offering, a private placement, or a
term loan facility, not in excess of $25,000,000 aggregate principal amount
outstanding at any time, and subject to section 9.12, provided that at the time
of incurrence thereof, and after giving effect thereto, (i) the Borrower would
be in compliance with sections 10.7 and 10.8. and (ii) no Event of Default shall
have occurred and be continuing or would result therefrom.
10.5. Advances, Investments, Loans and Guaranty Obligations. The Borrower
will not, and will not permit any of its Subsidiaries to: (i) lend money or
credit or make advances to any person; (ii) purchase or acquire any stock,
obligations or securities of, or any other interest in, or make any capital
contribution to, or other investment in, any person; (iii) create, acquire or
hold any Subsidiary; (iv) be or become a party to any joint venture, member of a
limited liability company or partner of a partnership; or (v) be or become
obligated under any Guaranty Obligations (other than those created in favor of
the Lenders pursuant to the Credit Documents), except:
(a) the Borrower or any of its Subsidiaries may invest in cash and Cash
Equivalents;
(b) any endorsement of a check or other medium of payment for deposit or
collection, or any similar transaction in the normal course of business;
(c) the Borrower and its Subsidiaries may acquire and hold receivables
owing to them in the ordinary course of business and payable or dischargeable in
accordance with customary trade terms;
(d) investments acquired by the Borrower or any of its Subsidiaries: (i) in
exchange for any other investment held by the Borrower or any such Subsidiary in
connection with or as a result of a bankruptcy, workout, reorganization or
recapitalization of the issuer of such other investment; or (ii) as a result of
a foreclosure by the Borrower or any of its Subsidiaries with respect to any
secured investment or other transfer of title with respect to any secured
investment in default;
(e) loans and advances to employees for business-related travel expenses,
moving expenses, costs of replacement homes, business machines or supplies,
automobiles and other similar expenses, in each case incurred in the ordinary
course of business, shall be permitted;
(f) to the extent not permitted by the foregoing clauses, the existing
loans, advances, investments and guarantees described on Annex V hereto;
(g) investments of the Borrower and its Subsidiaries in Hedge Agreements;
(h) existing investments in any Subsidiaries and any additional investments
in any Wholly-Owned Subsidiary permitted by section 10.2(a);
(i) intercompany loans and advances permitted by section 10.4(d);
(j) the Acquisitions permitted by section 10.2 and loans, advances and
investments of any person that are outstanding at the time such person becomes a
Subsidiary of the Borrower as a result of an Acquisition permitted by section
10.2, but not any increase in the amount thereof;
-67-
(k) any unsecured Guaranty Obligation incurred by the Borrower or any
Subsidiary with respect to (i) Indebtedness of a Wholly-Owned Subsidiary of the
Borrower that is permitted under section 10.4 without restriction upon the
ability of the Borrower or any Subsidiary to guarantee the same, or (ii) other
obligations of a Wholly-Owned Subsidiary of the Borrower that are not prohibited
by this Agreement;
(l) any other loans, advances, investments (whether in the form of cash or
contribution of property, and if in the form of a contribution of property, such
property shall be valued for purposes of this clause at the fair value thereof
as reasonably determined by the Borrower), in or to any corporation,
partnership, limited liability company, joint venture or other business entity,
not otherwise permitted by the foregoing clauses (such loans, advances and
investments, collectively, "Basket Investments"), provided that (i) at the time
of making any such Basket Investment no Event of Default shall have occurred and
be continuing, or would result therefrom, and (ii) the maximum cumulative amount
of Basket Investments that are so made and outstanding at any time, taking into
account the repayment of any loans or advances comprising such Basket
Investments, shall not exceed an aggregate of $5,000,000 (exclusive of any
accreted value).
10.6. Dividends, etc. The Borrower will not: (i) directly or indirectly
declare, order, pay or make any dividend (other than dividends payable solely in
capital stock of the Borrower) or other distribution on or in respect of any
capital stock of any class of the Borrower, whether by reduction of capital or
otherwise; or (ii) directly or indirectly make, or permit any of its
Subsidiaries to directly or indirectly make, any purchase, redemption,
retirement or other acquisition of (x) any capital stock of any class of the
Borrower (other than for a consideration consisting solely of capital stock of
the same class of the Borrower), or (y) any warrants, rights or options to
acquire or any securities convertible into or exchangeable for any capital stock
of the Borrower, except that the Borrower may make any purchase, redemption,
retirement or other acquisition of its capital stock or make cash payments in
respect of dividends on its common stock if:
(a) no Default under section 11.1(a) or Event of Default shall have
occurred and be continuing at the time of declaration or payment thereof;
(b) after giving effect thereto the Borrower will be in compliance, on a
pro forma basis, with sections 10.8, 10.9 and 10.10;
(c) with respect to any purchase, redemption, retirement or other
acquisition of its capital stock, at the time of making any such purchase,
redemption, retirement or other acquisition and after giving effect thereto, the
cumulative aggregate amount does not exceed $10,000,000 over the life of this
Agreement; and
(d) with respect to dividends, at the time of making any such dividend and
after giving effect thereto, the cumulative aggregate amount of dividends paid
and declared in any period of 12 consecutive months does not exceed $8,000,000;
10.7. Asset Coverage Percentage. The Borrower will not at any time permit
the sum of (a) 85% of Eligible Accounts Receivable plus (b) 50% of Eligible
Inventory plus (c) 50% of Eligible PP&E to be less than 125% of Consolidated
Total Debt.
10.8. Ratio of Consolidated Total Debt to Consolidated EBITDA. The Borrower
will not at any time permit the ratio of (x) the amount of its Consolidated
Total Debt at such time to (y) its Consolidated EBITDA for its Testing Period
most recently ended, to exceed 3.00 to 1.00.
-68-
10.9. Interest Coverage Ratio. The Borrower will not permit its Interest
Coverage Ratio to be less than 2.50 to 1.00 for any Testing Period.
10.10. Minimum Consolidated Net Worth. The Borrower's Consolidated Net
Worth any time shall not be less than the sum of (i) 90% of the Consolidated Net
Worth on the Closing Date plus (ii) 50% of Consolidated Net Income (to the
extent a positive number) for each fiscal quarter thereafter.
10.11. Prepayments and Refinancings of Other Debt, etc. The Borrower will
not, and will not permit any of its Subsidiaries to, make (or give any notice in
respect thereof) any voluntary or optional payment or prepayment or redemption
or acquisition for value of (including, without limitation, by way of depositing
with the trustee with respect thereto money or securities before due for the
purpose of paying when due) or exchange of, or refinance or refund, any
Indebtedness of the Borrower or its Subsidiaries having an outstanding principal
balance (or Capitalized Lease Obligation, in the case of a Capital Lease, or
present value, based on the implicit interest rate, in the case of any Synthetic
Lease) in excess of $5,000,000 (other than the Obligations and intercompany
loans and advances among the Borrower and its Subsidiaries); provided that the
Borrower or any Subsidiary may refinance or refund any such Indebtedness if the
aggregate principal amount thereof (or Capitalized Lease Obligation, in the case
of a Capital Lease, or present value, based on the implicit interest rate, in
the case of any Synthetic Lease) is not increased and the weighted average life
to maturity thereof (computed in accordance with standard financial practice) is
not reduced.
10.12. Limitation on Certain Restrictive Agreements. The Borrower will not,
and will not permit any of its Subsidiaries to, directly or indirectly, enter
into, incur or permit to exist or become effective, any agreement or other
arrangement that prohibits, restricts or imposes any condition upon: (a) the
ability of the Borrower or any Subsidiary to create, incur or suffer to exist
any Lien upon any of its property or assets as security for Indebtedness; or (b)
the ability of any such Subsidiary to pay dividends or make any other
distributions on its capital stock or any other interest or participation in its
profits owned by the Borrower or any Subsidiary of the Borrower, or pay any
Indebtedness owed to the Borrower or a Subsidiary of the Borrower, or to make
loans or advances to the Borrower or any of the Borrower's other Subsidiaries,
or transfer any of its property or assets to the Borrower or any of the
Borrower's other Subsidiaries, except for such restrictions existing under or by
reason of (i) applicable law, (ii) this Agreement and the other Credit
Documents, (iii) customary provisions restricting subletting or assignment of
any lease governing a leasehold interest, (iv) customary provisions restricting
assignment of any licensing agreement entered into in the ordinary course of
business, (v) customary provisions restricting the transfer or further
encumbering of assets subject to Liens permitted under section 10.3 (b), (c) or
(d), (vi) restrictions contained in the Existing Indebtedness Agreements as in
effect on the Closing Date (and similar restrictions governing any Indebtedness
incurred in connection with the refinancing of the Existing Indebtedness in
compliance with section 10.3(b)(ii)), (vii) customary restrictions affecting
only a Subsidiary of the Borrower under any agreement or instrument governing
any of the Indebtedness of a Subsidiary permitted pursuant to 10.4, (viii) any
document relating to Indebtedness secured by a Lien permitted by section 10.3,
insofar as the provisions thereof limit grants of junior liens on the assets
securing such Indebtedness, and (ix) any Operating Lease or Capital Lease,
insofar as the provisions thereof limit grants of a security interest in, or
other assignments of, the related leasehold interest to any other person.
10.13. Transactions with Affiliates. The Borrower will not, and will not
permit any Subsidiary to, enter into any transaction or series of transactions
with any Affiliate (other than, in the case of the Borrower, any Subsidiary, and
in the case of a Subsidiary, the Borrower or another Subsidiary) other than in
the ordinary course of business of and pursuant to the reasonable requirements
of the Borrower's or such Subsidiary's business and upon fair and reasonable
terms no less favorable to the Borrower or such Subsidiary than would be
obtained in a comparable arm's-length transaction with a person other than an
Affiliate, except (i) sales of goods to an Affiliate for use or distribution
outside the United States that in
-69-
the good faith judgment of the Borrower complies with any applicable legal
requirements of the Code, or (ii) agreements and transactions with and payments
to officers, directors and shareholders that are either (A) entered into in the
ordinary course of business and not prohibited by any of the provisions of this
Agreement, or (B) entered into outside the ordinary course of business, approved
by the directors or shareholders of the Borrower and not prohibited by any of
the provisions of this Agreement.
10.14. Plan Terminations, Minimum Funding, etc. The Borrower will not, and
will not permit any ERISA Affiliate to: (i) terminate any Plan or plans so as to
result in liability of the Borrower or any ERISA Affiliate to the PBGC in excess
of, in the aggregate, the amount that is equal to 5% of the Borrower's
Consolidated Net Worth as of the date of the then most recent financial
statements furnished to the Lenders pursuant to the provisions of this
Agreement; (ii) permit to exist one or more events or conditions that reasonably
present a material risk of the termination by the PBGC of any Plan or Plans with
respect to which the Borrower or any ERISA Affiliate would, in the event of such
termination, incur liability to the PBGC in excess of such amount in the
aggregate; or (iii) fail to comply with the minimum funding standards of ERISA
and the Code with respect to any Plan.
SECTION 11. EVENTS OF DEFAULT.
11.1. Events of Default. Any of the following specified events (each an
"Event of Default") shall constitute an Event of Default hereunder:
(a) Payments: the Borrower shall: (i) default in the payment when due of
any principal of the Loans; or (ii) default, and such default shall continue for
five or more days, in the payment when due of any interest on the Loans or any
Fees or any other amounts owing hereunder or under any other Credit Document; or
(b) Representations, etc.: any representation, warranty or statement made
by the Borrower herein or in any other Credit Document or in any statement or
certificate delivered or required to be delivered pursuant hereto or thereto
shall prove to be untrue in any material respect on the date as of that made or
deemed made; or
(c) Certain Covenants: the Borrower shall default in the due performance or
observance by it of any term, covenant or agreement contained in section
9.1(f)(i), or sections 10.2 through 10.12, inclusive, of this Agreement; or
(d) Other Covenants: the Borrower shall default in the due performance or
observance by it of any term, covenant or agreement contained in this Agreement
or any other Credit Document, other than those referred to in section 11.1(a) or
(b) or (c) above, and such default is not remedied within 30 days after the
earlier of (i) an officer of the Borrower obtaining actual knowledge of such
default and (ii) the Borrower receiving written notice of such default from the
Administrative Agent or the Required Lenders (any such notice to be identified
as a "notice of default" and to refer specifically to this paragraph); or
(e) Cross Default Under Other Agreements: the Borrower or any of its
Subsidiaries shall (i) default in any payment with respect to any Indebtedness
(other than the Obligations) owed to any Lender or any of its Affiliates, or
having an unpaid principal amount of $2,500,000 or greater, and such default
shall continue after the applicable grace period, if any, specified in the
agreement or instrument relating to such Indebtedness, or (ii) default in the
observance or performance of any agreement or condition relating to any such
Indebtedness or contained in any instrument or agreement evidencing, securing or
relating thereto (and all grace periods applicable to such observance,
performance or condition shall have expired), or any other event shall occur or
condition exist, the effect of which default or other event or condition is to
cause, or to permit the holder or holders of such Indebtedness (or a trustee or
agent on behalf of such holder or holders) to cause any such Indebtedness to
become due prior to its
-70-
stated maturity; or any such Indebtedness of the Borrower or any of its
Subsidiaries shall be declared to be due and payable, or shall be required to be
prepaid (other than by a regularly scheduled required prepayment or redemption,
prior to the stated maturity thereof); or
(f) Judgments: one or more judgments or decrees shall be entered against
the Borrower and/or any of its Subsidiaries involving a liability (other than a
liability covered by insurance, as to which the carrier has adequate claims
paying ability and has not denied coverage or reserved its rights) equal to or
more than $ 2,500,000 (in the aggregate for all such judgments and decrees for
the Borrower and its Subsidiaries) and any such judgments or decrees shall not
have been vacated, discharged or stayed or bonded pending appeal within 30 days
(or such longer period, not in excess of 60 days, during which enforcement
thereof, and the filing of any judgment lien, is effectively stayed or
prohibited) from the entry thereof; or
(g) Bankruptcy, etc.: the Borrower or any of its Material Subsidiaries
shall commence a voluntary case concerning itself under Title 11 of the United
States Code entitled "Bankruptcy," as now or hereafter in effect, or any
successor thereto (the "Bankruptcy Code"); or an involuntary case is commenced
against the Borrower or any of its Material Subsidiaries and the petition is not
controverted within 10 days, or is not dismissed within 60 days, after
commencement of the case; or a custodian (as defined in the Bankruptcy Code) is
appointed for, or takes charge of, all or substantially all of the property of
the Borrower or any of its Material Subsidiaries; or the Borrower or any of its
Material Subsidiaries commences (including by way of applying for or consenting
to the appointment of, or the taking of possession by, a rehabilitator,
receiver, custodian, trustee, conservator or liquidator (collectively, a
"conservator") of itself or all or any substantial portion of its property) any
other proceeding under any reorganization, arrangement, adjustment of debt,
relief of debtors, dissolution, insolvency, liquidation, rehabilitation,
conservatorship or similar law of any jurisdiction whether now or hereafter in
effect relating to the Borrower or any of its Material Subsidiaries; or any such
proceeding is commenced against the Borrower or any of its Material Subsidiaries
to the extent such proceeding is consented to by such person or remains
undismissed for a period of 60 days; or the Borrower or any of its Material
Subsidiaries is adjudicated insolvent or bankrupt; or any order of relief or
other order approving any such case or proceeding is entered; or the Borrower or
any of its Material Subsidiaries suffers any appointment of any conservator or
the like for it or any substantial part of its property that continues
undischarged or unstayed for a period of 60 days; or the Borrower or any of its
Material Subsidiaries makes a general assignment for the benefit of creditors;
or any corporate (or similar organizational) action is taken by the Borrower or
any of its Material Subsidiaries for the purpose of effecting any of the
foregoing; or
(h) ERISA: (i) any of the events described in clauses (i) through (viii) of
section 9.1(g) shall have occurred; or (ii) there shall result from any such
event or events the imposition of a lien, the granting of a security interest,
or a liability or a material risk of incurring a liability; and (iii) any such
event or events or any such lien, security interest or liability, individually,
and/or in the aggregate, in the opinion of the Required Lenders, has had, or
could reasonably be expected to have, a Material Adverse Effect; or
(i) Material Adverse Change: there occurs an event or series of events that
could reasonably be expected to have a Material Adverse Effect; or
(j) Change of Control: there occurs a Change of Control.
11.2. Acceleration, etc. Upon the occurrence of any Event of Default, and
at any time thereafter, if any Event of Default shall then be continuing, the
Administrative Agent shall, upon the written request of the Required Lenders, by
written notice to the Borrower, take any or all of the following actions,
without prejudice to the rights of the Administrative Agent or any Lender to
enforce its claims against the Borrower (provided that, if an Event of Default
specified in section 11.1(g) shall occur with respect to the Borrower, the
result that would occur upon the giving of written notice by the
-71-
Administrative Agent as specified in clauses (i) and (ii) below shall occur
automatically without the giving of any such notice): (i) declare the Total
Commitment terminated, whereupon the Commitment of each Lender shall forthwith
terminate immediately without any other notice of any kind; (ii) declare the
principal of and any accrued interest in respect of all Loans, and all other
Obligations owing hereunder and under the other Credit Documents to be,
whereupon the same shall become, forthwith due and payable without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower; and/or (iii) request that the Borrower shall pay, and the Borrower
agrees that it shall pay if requested to do so by the Administrative Agent, to
the Administrative Agent an amount in cash and/or Cash Equivalents equal to 100%
of the Letter of Credit Outstandings and the Administrative Agent shall hold
such payment as security for the reimbursement obligations of the Borrower in
respect of Letters of Credit pursuant to a cash collateral agreement to be
entered into in form and substance reasonably satisfactory to the Administrative
Agent, each Letter of Credit Issuer and the Borrower (which shall permit certain
investments in Cash Equivalents satisfactory to the Administrative Agent, each
Letter of Credit Issuer and the Borrower until the proceeds are applied to the
secured obligations).
11.3. Application of Liquidation Proceeds. All monies received by the
Administrative Agent or any Lender from the exercise of remedies hereunder or
under the other Credit Documents or under any other documents relating to this
Agreement shall, unless otherwise required by the terms of the other Credit
Documents or by applicable law, be applied as follows:
(1) first, to the payment of all expenses (to the extent not paid by
the Borrower) incurred by the Administrative Agent and the Lenders in
connection with the exercise of such remedies, including, without
limitation, all reasonable costs and expenses of collection, attorneys'
fees, court costs and any foreclosure expenses;
(2) second, to the payment pro rata of interest then accrued on the
outstanding Loans;
(3) third, to the payment pro rata of any fees then accrued and
payable to the Administrative Agent or any Lender under this Agreement;
(4) fourth, to the payment pro rata of the principal balance then
owing on the outstanding Loans;
(5) fifth, to the payment pro rata of all other amounts owed by the
Borrower to the Administrative Agent or any Lender under this Agreement or
any other Credit Document; and
(6) finally, any remaining surplus after all of the Obligations have
been paid in full, to the Borrower or to whomsoever shall be lawfully
entitled thereto.
SECTION 12. THE ADMINISTRATIVE AGENT.
12.1. Appointment. Each Lender hereby irrevocably designates and appoints
NCB as Administrative Agent to act as specified herein and in the other Credit
Documents, and each such Lender hereby irrevocably authorizes NCB as the
Administrative Agent for such Lender, to take such action on its behalf under
the provisions of this Agreement and the other Credit Documents and to exercise
such powers and perform such duties as are expressly delegated to the
Administrative Agent by the terms of this Agreement and the other Credit
Documents, together with such other powers as are reasonably incidental thereto.
The Administrative Agent agrees to act as such upon the express conditions
contained in this section 12. Notwithstanding any provision to the contrary
elsewhere in this Agreement, the Administrative Agent shall not have any duties
or responsibilities, except those expressly set forth herein or in the other
Credit Documents, nor any fiduciary relationship with any Lender, and no implied
-72-
covenants, functions, responsibilities, duties, obligations or liabilities shall
be read into this Agreement or otherwise exist against the Administrative Agent.
The provisions of this section 12 are solely for the benefit of the
Administrative Agent, and the Lenders, and the Borrower and its Subsidiaries
shall not have any rights as a third party beneficiary of any of the provisions
hereof. In performing its functions and duties under this Agreement, the
Administrative Agent shall act solely as agent of the Lenders and does not
assume and shall not be deemed to have assumed any obligation or relationship of
agency or trust with or for the Borrower or any of its Subsidiaries.
12.2. Delegation of Duties. The Administrative Agent may execute any of its
duties under this Agreement or any other Credit Document by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Administrative Agent shall not be
responsible for the negligence or misconduct of any agents or attorneys-in-fact
selected by it with reasonable care except to the extent otherwise required by
section 12.3.
12.3. Exculpatory Provisions. Neither the Administrative Agent nor any of
its respective officers, directors, employees, agents, attorneys-in-fact or
affiliates shall be: (i) liable for any action lawfully taken or omitted to be
taken by it or such person under or in connection with this Agreement (except
for its or such person's own gross negligence or willful misconduct); or (ii)
responsible in any manner to any of the Lenders for any recitals, statements,
representations or warranties made by the Borrower or of its Subsidiaries or any
of their respective officers contained in this Agreement, any other Credit
Document or in any certificate, report, statement or other document referred to
or provided for in, or received by the Administrative Agent under or in
connection with, this Agreement or any other Credit Document or for any failure
of the Borrower or any Subsidiary of the Borrower or any of their respective
officers to perform its obligations hereunder or thereunder. The Administrative
Agent shall not be under any obligation to any Lender to ascertain or to inquire
as to the observance or performance of any of the agreements contained in, or
conditions of, this Agreement, or to inspect the properties, books or records of
the Borrower or any of its Subsidiaries. The Administrative Agent shall not be
responsible to any Lender for the effectiveness, genuineness, validity,
enforceability, collectibility or sufficiency of this Agreement or any Credit
Document or for any representations, warranties, recitals or statements made
herein or therein or made in any written or oral statement or in any financial
or other statements, instruments, reports, certificates or any other documents
in connection herewith or therewith furnished or made by the Administrative
Agent to the Lenders or by or on behalf of the Borrower or any of its
Subsidiaries to the Administrative Agent or any Lender or be required to
ascertain or inquire as to the performance or observance of any of the terms,
conditions, provisions, covenants or agreements contained herein or therein or
as to the use of the proceeds of the Loans or of the existence or possible
existence of any Default or Event of Default.
12.4. Reliance by Administrative Agent. The Administrative Agent shall be
entitled to rely, and shall be fully protected in relying, upon any note,
writing, resolution, notice, consent, certificate, affidavit, letter, cablegram,
telegram, facsimile transmission, telex or teletype message, statement, order or
other document or conversation believed by it, in good faith, to be genuine and
correct and to have been signed, sent or made by the proper person or persons
and upon advice and statements of legal counsel (including, without limitation,
counsel to the Borrower or any of its Subsidiaries), independent accountants and
other experts selected by the Administrative Agent. The Administrative Agent
shall be fully justified in failing or refusing to take any action under this
Agreement or any other Credit Document unless it shall first receive such advice
or concurrence of the Required Lenders as it deems appropriate or it shall first
be indemnified to its satisfaction by the Lenders against any and all liability
and expense that may be incurred by it by reason of taking or continuing to take
any such action. The Administrative Agent shall in all cases be fully protected
in acting, or in refraining from acting, under this Agreement and the other
Credit Documents in accordance with a request of the Required Lenders (or all of
the Lenders, as to any matter that, pursuant to section 13.12, can only be
effectuated with the consent of all Lenders),
-73-
and such request and any action taken or failure to act pursuant thereto shall
be binding upon all the Lenders.
12.5. Notice of Default. The Administrative Agent shall not be deemed to
have knowledge or notice of the occurrence of any Default or Event of Default
hereunder unless the Administrative Agent has received notice from a Lender or
the Borrower referring to this Agreement, describing such Default or Event of
Default and stating that such notice is a "notice of default." In the event that
the Administrative Agent receives such a notice, the Administrative Agent shall
give prompt notice thereof to the Lenders. The Administrative Agent shall take
such action with respect to such Default or Event of Default as shall be
reasonably directed by the Required Lenders, provided that unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it shall
deem advisable in the best interests of the Lenders.
12.6. Non-Reliance. Each Lender expressly acknowledges that neither the
Administrative Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact or Affiliates have made any representations or warranties to
it and that no act by the Administrative Agent hereinafter taken, including any
review of the affairs of the Borrower or any of its Subsidiaries, shall be
deemed to constitute any representation or warranty by the Administrative Agent
to any Lender. Each Lender represents to the Administrative Agent that it has,
independently and without reliance upon the Administrative Agent, or any other
Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
assets, operations, property, financial and other conditions, prospects and
creditworthiness of the Borrower and its Subsidiaries and made its own decision
to make its Loans hereunder and enter into this Agreement. Each Lender also
represents that it will, independently and without reliance upon the
Administrative Agent, or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Agreement, and to make such investigation as it deems necessary to inform
itself as to the business, assets, operations, property, financial and other
conditions, prospects and creditworthiness of the Borrower and its Subsidiaries.
The Administrative Agent shall not have any duty or responsibility to provide
any Lender with any credit or other information concerning the business,
operations, assets, property, financial and other conditions, prospects or
creditworthiness of the Borrower or any of its Subsidiaries that may come into
the possession of the Administrative Agent or any of its officers, directors,
employees, agents, attorneys-in-fact or Affiliates.
12.7. Indemnification. The Lenders agree to indemnify the Administrative
Agent in its capacity as such ratably according to their respective General
Revolving Loans and Unutilized General Revolving Commitments, from and against
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, reasonable expenses or disbursements of any kind
whatsoever that may at any time (including, without limitation, at any time
following the payment of the Obligations) be imposed on, incurred by or asserted
against the Administrative Agent in its capacity as such in any way relating to
or arising out of this Agreement or any other Credit Document, or any documents
contemplated by or referred to herein or the transactions contemplated hereby or
any action taken or omitted to be taken by the Administrative Agent under or in
connection with any of the foregoing, but only to the extent that any of the
foregoing is not paid by the Borrower, provided that no Lender shall be liable
to the Administrative Agent for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements to the extent resulting solely from the Administrative
Agent's gross negligence or willful misconduct. If any indemnity furnished to
the Administrative Agent for any purpose shall, in the opinion of the
Administrative Agent, be insufficient or become impaired, the Administrative
Agent may call for additional indemnity and cease, or not commence, to do the
acts indemnified against until such additional indemnity is furnished. The
agreements in this section 12.7 shall survive the payment of all Obligations.
-74-
12.8. The Administrative Agent in Individual Capacity. The Administrative
Agent and its Affiliates may make loans to, accept deposits from and generally
engage in any kind of business with the Borrower, its Subsidiaries and their
Affiliates as though not acting as Administrative Agent hereunder. With respect
to the Loans made by it and all Obligations owing to it, the Administrative
Agent shall have the same rights and powers under this Agreement as any Lender
and may exercise the same as though it were not the Administrative Agent, and
the terms "Lender" and "Lenders" shall include the Administrative Agent in its
individual capacity.
12.9. Successor Administrative Agent. The Administrative Agent may resign
as the Administrative Agent upon not less than 30 Business Days' notice to the
Lenders and the Borrower. The Administrative Agent may be removed as the
Administrative Agent for cause upon not less than 30 Business Days' notice to
the Administrative Agent and the Borrower from the Required Lenders. The
Required Lenders shall appoint from among the Lenders a successor Administrative
Agent for the Lenders, subject to prior approval by the Borrower if no Event of
Default has occurred and is continuing (such approval not to be unreasonably
withheld or delayed), whereupon such successor agent shall succeed to the
rights, powers and duties of the Administrative Agent, and the term
"Administrative Agent" shall include such successor agent effective upon its
appointment, and the resigning or removed Administrative Agent's rights, powers
and duties as the Administrative Agent shall be terminated, without any other or
further act or deed on the part of such former Administrative Agent or any of
the parties to this Agreement. After the retiring or removed Administrative
Agent's resignation or removal hereunder as the Administrative Agent, the
provisions of this section 12 shall inure to its benefit as to any actions taken
or omitted to be taken by it while it was Administrative Agent under this
Agreement.
12.10. Other Agents. Any Lender identified herein as a Co-Agent,
Syndication Agent, Documentation Agent, Managing Agent, Manager or any other
corresponding title, other than "Administrative Agent," shall have no right,
power, obligation, liability, responsibility or duty under this Agreement or any
other Credit Document except those applicable to all Lenders as such. Each
Lender acknowledges that it has not relied, and will not rely, on any Lender so
identified in deciding to enter into this Agreement or in taking or not taking
any action hereunder.
SECTION 13. MISCELLANEOUS.
13.1. Payment of Expenses etc. (a) Whether or not the transactions
contemplated hereby are consummated, the Borrower agrees to pay (or reimburse
the Administrative Agent for) all reasonable out-of-pocket costs and expenses of
the Administrative Agent in connection with the negotiation, preparation,
execution and delivery of the Credit Documents and the documents and instruments
referred to therein, including, without limitation, the reasonable fees and
disbursements of Xxxxx Day, special counsel to the Administrative Agent.
(b) The Borrower agrees to pay (or reimburse the Administrative Agent and
its Affiliates for) all reasonable out-of-pocket costs and expenses of any Agent
or any of its Affiliates in connection with any amendment, waiver or consent
relating to any of the Credit Documents that is requested by the Borrower,
including, without limitation, the reasonable fees and disbursements of Xxxxx
Day, special counsel to the Administrative Agent.
(c) The Borrower agrees to pay (or reimburse the Administrative Agent, the
Lenders and their Affiliates for) all reasonable out-of-pocket costs and
expenses of the Administrative Agent, the Lenders and their Affiliates in
connection with the enforcement against the Borrower of any of the Credit
Documents or the other documents and instruments referred to therein, including,
without limitation, (i) the reasonable fees and disbursements of Xxxxx Day,
special counsel to the Administrative Agent, and (ii) the reasonable fees and
disbursements of any individual counsel to any Lender (including allocated costs
of internal counsel).
-75-
(d) Without limitation of the preceding section 13.1(c), in the event of
the bankruptcy, insolvency, rehabilitation or other similar proceeding in
respect of the Borrower, the Borrower agrees to pay all costs of collection and
defense, including reasonable attorneys' fees in connection therewith and in
connection with any appellate proceeding or post-judgment action involved
therein, that shall be due and payable together with all required service or use
taxes.
(e) The Borrower agrees to pay and hold the Administrative Agent and each
of the Lenders harmless from and against any and all present and future stamp
and other similar taxes with respect to the foregoing matters and save the
Administrative Agent and each of the Lenders harmless from and against any and
all liabilities with respect to or resulting from any delay or omission (other
than to the extent attributable to any such indemnified person) to pay such
taxes.
(f) The Borrower agrees to indemnify the Administrative Agent, each Lender,
and their respective officers, directors, trustees, employees, representatives,
agents and Affiliates, and the successors and assigns of any of the foregoing
(collectively, the "Indemnities") from and hold each of them harmless against
any and all losses, liabilities, claims, damages or expenses reasonably incurred
by any of them as a result of, or arising out of, or in any way related to, or
by reason of:
(i) any investigation, litigation or other proceeding (whether or not
any Lender is a party thereto) related to the entering into and/or
performance of any Credit Document or the use of the proceeds of any Loans
hereunder or the consummation of any transactions contemplated in any
Credit Document, other than any such investigation, litigation or
proceeding arising out of transactions solely between any of the Lenders or
the Administrative Agent, transactions solely involving the assignment by a
Lender of all or a portion of its Loans and Commitments, or the granting of
participations therein, as provided in this Agreement, or arising solely
out of any examination of a Lender by any regulatory or other governmental
authority having jurisdiction over it; or
(ii) the actual or alleged presence of Hazardous Materials in the air,
surface water or groundwater or on the surface or subsurface of any Real
Property owned, leased or at any time operated by the Borrower or any of
its past or then current Subsidiaries or Affiliates or any of their
predecessors in interest, the release, generation, storage, transportation,
handling or disposal of Hazardous Materials at any location, whether or not
owned or operated by the Borrower or any of its past or current
Subsidiaries or any of their respective Affiliates or any of their
predecessors in interest, if the Borrower or any such Subsidiary or
Affiliate could have or is alleged to have any responsibility in respect
thereof, the non-compliance of any such Real Property with foreign,
federal, state and local laws, regulations and ordinances (including
applicable permits thereunder) applicable thereto, or any Environmental
Claim asserted against the Borrower or any of its Subsidiaries or any of
their respective Affiliates, in respect of any such Real Property,
including, in each case, without limitation, the reasonable documented fees and
disbursements of counsel incurred in connection with any such investigation,
litigation or other proceeding (but excluding any such losses, liabilities,
claims, damages or expenses to the extent incurred by reason of the gross
negligence or willful misconduct of the person to be indemnified or of any other
Indemnitee who is such person or an Affiliate of such person). To the extent
that the undertaking to indemnify, pay or hold harmless any person set forth in
the preceding sentence may be unenforceable because it is violative of any law
or public policy, the Borrower shall make the maximum contribution to the
payment and satisfaction of each of the indemnified liabilities that is
permissible under applicable law.
13.2. Right of Setoff. In addition to any rights now or hereafter granted
under applicable law or otherwise, and not by way of limitation of any such
rights, upon the maturity or the acceleration of the Loans, each Lender is
hereby authorized at any time or from time to time, without presentment, demand,
-76-
protest or other notice of any kind to the Borrower or to any other person, any
such notice being hereby expressly waived, to set off and to appropriate and
apply any and all deposits (general or special) and any other Indebtedness at
any time held or owing by such Lender (including, without limitation, by
branches and agencies of such Lender wherever located) to or for the credit or
the account of the Borrower against and on account of the Obligations and
liabilities of the Borrower to such Lender under this Agreement or under any of
the other Credit Documents, including, without limitation, all interests in
Obligations of the Borrower purchased by such Lender pursuant to section
13.4(b), and all other claims of any nature or description arising out of or
connected with this Agreement or any other Credit Document, irrespective of
whether or not such Lender shall have made any demand hereunder and although
said Obligations, liabilities or claims, or any of them, shall be contingent or
unmatured.
13.3. Notices. Except as otherwise expressly provided herein, all notices
and other communications provided for hereunder shall be in writing (including
telegraphic, telex, facsimile transmission, e-mail transmission or cable
communication) and mailed, telegraphed, telexed, transmitted, cabled or
delivered, if to the Borrower, at 000 Xxxxxx Xxxxxx Xxxxx, Xxxxxxxxxx,
Xxxxxxxxxxxx 00000, attention: Xxxxxx X. Xxxxxxxx, Treasurer (facsimile: (412)
787-6313 and (000) 000-0000); if to any Lender at its address specified for such
Lender on Annex I hereto; if to the Administrative Agent, at 00 Xxxxxxx Xxxxxx,
Xxxxxxxxxx, Xxxxxxxxxxxx 00000, attention: Xxxx X. Xxxxx, Vice President
(facsimile: (000) 000-0000); or at such other address as shall be designated by
any party in a written notice to the other parties hereto. All such notices and
communications shall be mailed, telegraphed, telexed, telecopied, transmitted or
cabled or sent by overnight courier, and shall be effective when received.
13.4. Benefit of Agreement. (a) Successors and Assigns Generally. This
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the parties hereto and their respective successors and assigns, provided that
the Borrower may not assign or transfer any of its rights or obligations
hereunder without the prior written consent of all the Lenders (other than any
Defaulting Lender), and, provided, further, that any assignment by a Lender of
its rights and obligations hereunder shall be effected in accordance with
section 13.4(c).
(b) Participations. Notwithstanding the foregoing, each Lender may at any
time grant participations in any of its rights hereunder or under any of the
Notes to (x) an Affiliate of such Lender that is a commercial bank, financial
institution or other "accredited investor" (as defined in SEC Regulation D), (y)
another Lender that is not a Defaulting Lender, or (z) one or more Eligible
Transferees, provided that in the case of any such participation:
(i) the participant shall not have any rights under this Agreement or
any of the other Credit Documents, including rights of consent, approval or
waiver (the participant's rights against such Lender in respect of such
participation to be those set forth in the agreement executed by such
Lender in favor of the participant relating thereto);
(ii) such Lender's obligations under this Agreement (including,
without limitation, its Commitment hereunder) shall remain unchanged;
(iii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations;
(iv) such Lender shall remain the holder of any Note for all purposes
of this Agreement; and
(v) the Borrower, the Administrative Agent, and the other Lenders
shall continue to deal solely and directly with the selling Lender in
connection with such Lender's rights and obligations under this Agreement,
and all amounts payable by the Borrower hereunder shall be
-77-
determined as if such Lender had not sold such participation, except that
the participant shall be entitled to the benefits of sections 2.10 and 2.11
of this Agreement to the extent that such Lender would be entitled to such
benefits if the participation had not been entered into or sold;
and, provided further, that no Lender shall transfer, grant or sell any
participation under which the participant shall have rights to approve any
amendment to or waiver of this Agreement or any other Credit Document except to
the extent such amendment or waiver would (x) extend any final date on or by
which any Loan in which such participant is participating may be incurred, or on
which any such Loan is scheduled to be repaid or mature, or extend any final
date on which any Commitment in which such participant is participating is
scheduled to expire or terminate, or reduce the rate of interest or Fees thereon
(except in connection with a waiver of the applicability of any post-default
increase in interest rates), or reduce the principal amount thereof, or increase
such participant's participating interest in any Commitment over the amount
thereof then in effect (it being understood that a waiver of any Default or
Event of Default shall not constitute a change in the terms of any such
Commitment), or (y) consent to the assignment or transfer by the Borrower of any
of its rights and obligations under this Agreement.
(c) Assignments by Lenders. Notwithstanding the foregoing, (x) any Lender
may assign all or a fixed portion of its Loans and/or Commitment, and its rights
and obligations hereunder, to another Lender that is not a Defaulting Lender, or
to an Affiliate of any Lender (including itself) that is not a Defaulting Lender
and that is a commercial bank, financial institution or other "accredited
investor" (as defined in SEC Regulation D), and (y) any Lender may assign all,
or if less than all, a fixed portion, equal to at least $5,000,000 in the
aggregate for the assigning Lender or assigning Lenders, of its Loans and/or
Commitment and its rights and obligations hereunder, to one or more Eligible
Transferees, each of which assignees shall become a party to this Agreement as a
Lender by execution of an Assignment Agreement, provided that:
(i) in the case of any assignment of a portion of any Loans and/or
Commitment of a Lender, such Lender shall retain a minimum fixed portion of
all Loans and Commitments equal to at least $5,000,000;
(ii) the Swing Line Lender may only assign its Swing Line Revolving
Commitment and its Swing Line Revolving Loans as an entirety and only if
the assignee thereof is or becomes a Lender with a General Revolving
Commitment;
(iii) at the time of any such assignment the Lender Register shall be
deemed modified to reflect the Commitments of such new Lender and of the
existing Lenders;
(iv) upon surrender of the old Notes, new Notes will be issued to such
new Lender and to the assigning Lender, such new Notes to be in conformity
with the requirements of section 2.6 (with appropriate modifications) to
the extent needed to reflect the revised Commitments;
(v) in the case of clause (y) only, the consent of the Administrative
Agent shall be required in connection with any such assignment (which
consent shall not be unreasonably withheld or delayed); and
(vi) the Administrative Agent shall receive at the time of each such
assignment, from the assigning or assignee Lender, the payment of a
non-refundable assignment fee of $3,500;
and, provided further, that such transfer or assignment will not be effective
until the Assignment Agreement in respect thereof is recorded by the
Administrative Agent on the Lender Register maintained by it as provided herein.
-78-
To the extent of any assignment pursuant to this section 13.4(c), the
assigning Lender shall be relieved of its obligations hereunder with respect to
its assigned Commitments.
At the time of each assignment pursuant to this section 13.4(c) to a person
that is not already a Lender hereunder and that is not a United States person
(as such term is defined in section 7701(a)(30) of the Code) for Federal income
tax purposes, the respective assignee Lender shall provide to the Borrower and
the Administrative Agent the appropriate Internal Revenue Service Forms (and, if
applicable a Section 6.4(b)(ii) Certificate) described in section 6.4(b). To the
extent that an assignment of all or any portion of a Lender's Commitment and
related outstanding Obligations pursuant to this section 13.4(c) would, at the
time of such assignment, result in increased costs under section 2.10 from those
being charged by the respective assigning Lender prior to such assignment, then
the Borrower shall not be obligated to pay such increased costs (although the
Borrower shall be obligated to pay any other increased costs of the type
referred to above in this sentence resulting from changes after the date of the
respective assignment).
Nothing in this section 13.4(c) shall prevent or prohibit: (i) any Lender
that is a bank, trust company or other financial institution from pledging its
Notes or Loans to a Federal Reserve Bank in support of borrowings made by such
Lender from such Federal Reserve Bank; or (ii) any Lender that is a trust,
limited liability company, partnership or other investment company from pledging
its Notes or Loans to a trustee or agent for the benefit of holders of
certificates or debt securities issued by it. No such pledge, or any assignment
pursuant to or in lieu of an enforcement of such a pledge, shall relieve the
transferor Lender from its obligations hereunder.
(d) No SEC Registration or Blue Sky Compliance. Notwithstanding any other
provisions of this section 13.4, no transfer or assignment of the interests or
obligations of any Lender hereunder or any grant of participation therein shall
be permitted if such transfer, assignment or grant would require the Borrower to
file a registration statement with the SEC or to qualify the Loans under the
"Blue Sky" laws of any State.
(e) Representations of Lenders. Each Lender initially party to this
Agreement hereby represents, and each person that became a Lender pursuant to an
assignment permitted by this section 13.4 will, upon its becoming party to this
Agreement, represent that it is a commercial lender, other financial institution
or other "accredited" investor (as defined in SEC Regulation D) that makes or
acquires loans in the ordinary course of its business and that it will make or
acquire Loans for its own account in the ordinary course of such business,
provided that subject to the preceding sections 13.4(b) and (c), the disposition
of any promissory notes or other evidences of or interests in Indebtedness held
by such Lender shall at all times be within its exclusive control.
(f) Grants by Lenders to SPCs. Notwithstanding anything to the contrary
contained herein, any Lender, (a "Granting Lender") may grant to a special
purpose funding vehicle (an "SPC"), identified as such in writing from time to
time by the Granting Lender to the Administrative Agent, the Borrower and the
other Lenders, the option to provide to the Borrower all or any part of any Loan
that such Granting Lender would otherwise be obligated to make to the Borrower
pursuant to this Agreement; provided that (i) nothing herein shall constitute a
commitment by any SPC to make any Loan, and (ii) if an SPC elects not to
exercise such option or otherwise fails to provide all or any part of such Loan,
the Granting Lender shall be obligated to make such Loan pursuant to the terms
hereof. The making of a Loan by an SPC hereunder shall utilize the Commitment of
the Granting Lender to the same extent, and as if, such Loan were made by such
Granting Lender. Each party hereto hereby agrees that no SPC shall be liable for
any indemnity or payment under this Agreement for which a Lender would otherwise
be liable for so long as, and to the extent, the Granting Lender provides such
indemnity or makes such payment. In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the
payment in
-79-
full of all outstanding commercial paper or other senior indebtedness of any
SPC, it will not institute against, or join any other person in instituting
against, such SPC any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings under the laws of the United States or any State
thereof. In addition, notwithstanding anything to the contrary contained in this
section 13.4, any SPC may (i) with notice to, but without the prior written
consent of, the Borrower and the Administrative Agent and without paying any
processing fee therefor, assign all or a portion of its interests in any Loans
to the Granting Lender or to any financial institutions providing liquidity
and/or credit support to or for the account of such SPC to support the funding
or maintenance of Loans and (ii) disclose on a confidential basis any non-public
information relating to its Loans to any rating agency, commercial paper dealer
or provider of any surety, guarantee or credit or liquidity enhancements to such
SPC. In no event shall the Borrower be obligated to pay to an SPC that has made
a Loan any greater amount than the Borrower would have been obligated to pay
under this Agreement had the applicable Granting Lender made such Loan. This
section 13.4(f) may not be amended without the written consent of any Granting
Lender affected thereby.
13.5. No Waiver: Remedies Cumulative. No failure or delay on the part of
the Administrative Agent or any Lender in exercising any right, power or
privilege hereunder or under any other Credit Document and no course of dealing
between the Borrower and the Administrative Agent or any Lender shall operate as
a waiver thereof, nor shall any single or partial exercise of any right, power
or privilege hereunder or under any other Credit Document preclude any other or
further exercise thereof or the exercise of any other right, power or privilege
hereunder or thereunder. The rights and remedies herein expressly provided are
cumulative and not exclusive of any rights or remedies that the Administrative
Agent or any Lender would otherwise have. No notice to or demand on the Borrower
in any case shall entitle the Borrower to any other or further notice or demand
in similar or other circumstances or constitute a waiver of the rights of the
Administrative Agent or any Lender to any other or further action in any
circumstances without notice or demand.
13.6. Payments Pro Rata. (a) The Administrative Agent agrees that promptly
after its receipt of each payment from or on behalf of the Borrower in respect
of any Obligations, it shall distribute such payment to the Lenders (other than
any Lender that has expressly waived in writing its right to receive its pro
rata share thereof) pro rata based upon their respective shares, if any, of the
Obligations with respect to which such payment was received. As to any such
payment received by the Administrative Agent prior to 1:00 P.M. (local time at
its Payment Office) in funds that are immediately available on such day, the
Administrative Agent will use all reasonable efforts to distribute such payment
in immediately available funds on the same day to the Lenders as aforesaid.
(b) Each of the Lenders agrees that, if it should receive any amount
hereunder (whether by voluntary payment, by realization upon security, by the
exercise of the right of setoff or banker's lien, by counterclaim or cross
action, by the enforcement of any right under the Credit Documents, or
otherwise) that is applicable to the payment of the principal of, or interest
on, the Loans or Fees, of a sum that with respect to the related sum or sums
received by other Lenders is in a greater proportion than the total of such
Obligation then owed and due to such Lender bears to the total of such
Obligation then owed and due to all of the Lenders immediately prior to such
receipt, then such Lender receiving such excess payment shall purchase for cash
without recourse or warranty from the other Lenders an interest in the
Obligations to such Lenders in such amount as shall result in a proportional
participation by all of the Lenders in such amount, provided that if all or any
portion of such excess amount is thereafter recovered from such Lender, such
purchase shall be rescinded and the purchase price restored to the extent of
such recovery, but without interest.
(c) Notwithstanding anything to the contrary contained herein, the
provisions of the preceding sections 13.6(a) and (b) shall be subject to the
express provisions of this Agreement that
-80-
require, or permit, differing payments to be made to Lenders that are not
Defaulting Lenders, as opposed to Defaulting Lenders.
13.7. Calculations: Computations. (a) The financial statements to be
furnished to the Lenders pursuant hereto shall be made and prepared in
accordance with GAAP consistently applied throughout the periods involved
(except as set forth in the notes thereto or as otherwise disclosed in writing
by the Borrower to the Lenders); provided, that if at any time the computations
determining compliance with section 10 utilize accounting principles different
from those utilized in the financial statements furnished to the Lenders, such
computations shall set forth in reasonable detail a description of the
differences and the effect upon such computations.
(b) All computations of interest on Prime Rate Loans and Eurodollar Loans
hereunder and all computations of Facility Fees and other Fees hereunder shall
be made on the actual number of days elapsed over a year of 360 days.
13.8. Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury
Trial. (a) THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE CONSTRUED IN
ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE COMMONWEALTH OF PENNSYLVANIA.
TO THE FULLEST EXTENT PERMITTED BY LAW, THE BORROWER HEREBY UNCONDITIONALLY AND
IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY JURISDICTION OTHER
THAN THE COMMONWEALTH OF PENNSYLVANIA GOVERNS THIS AGREEMENT OR ANY OF THE OTHER
CREDIT DOCUMENTS. Any legal action or proceeding with respect to this Agreement
or any other Credit Document may be brought in the Courts of the Commonwealth of
Pennsylvania, or of the United States for the Western District of Pennsylvania,
and, by execution and delivery of this Agreement, the Borrower hereby
irrevocably accepts for itself and in respect of its property, generally and
unconditionally, the jurisdiction of the aforesaid courts. The Borrower hereby
further irrevocably consents to the service of process out of any of the
aforementioned courts in any such action or proceeding by the mailing of copies
thereof by registered or certified mail, postage prepaid, to the Borrower at its
address for notices pursuant to section 13.3, such service to become effective
30 days after such mailing or at such earlier time as may be provided under
applicable law. Nothing herein shall affect the right of the Administrative
Agent or any Lender to serve process in any other manner permitted by law or to
commence legal proceedings or otherwise proceed against the Borrower in any
other jurisdiction.
(b) The Borrower hereby irrevocably waives any objection that it may now or
hereafter have to the laying of venue of any of the aforesaid actions or
proceedings arising out of or in connection with this Agreement or any other
Credit Document brought in the courts referred to in section 13.8(a) above and
hereby further irrevocably waives and agrees not to plead or claim in any such
court that any such action or proceeding brought in any such court has been
brought in an inconvenient forum.
(c) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL
RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER CREDIT DOCUMENTS
(INCLUDING, WITHOUT LIMITATION, ANY AMENDMENTS, WAIVERS OR OTHER MODIFICATIONS
RELATING TO ANY OF THE FOREGOING), OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY. EACH PARTY HERETO HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED
-81-
TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS PARAGRAPH.
13.9. Counterparts. This Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each
of which when so executed and delivered shall be an original, but all of which
shall together constitute one and the same agreement. A set of counterparts
executed by all the parties hereto shall be lodged with the Borrower and the
Administrative Agent.
13.10. Effectiveness; Integration. This Agreement shall become effective on
the date (the "Effective Date") on which the Borrower and each of the Lenders
shall have signed a copy hereof (whether the same or different copies) and shall
have delivered the same to the Administrative Agent at the Notice Office of the
Administrative Agent or, in the case of the Lenders, shall have given to the
Administrative Agent telephonic (confirmed in writing), written telex or
facsimile transmission notice (actually received) at such office that the same
has been signed and mailed or sent by overnight courier to it. This Agreement,
the other Credit Documents and any separate letter agreements with respect to
fees payable to the Administrative Agent, for its own account and benefit and/or
for the account, benefit of, and distribution to, the Lenders, constitute the
entire contract among the parties relating to the subject matter hereof and
thereof and supersede any and all previous agreements and understandings, oral
or written, relating to the subject matter hereof or thereof.
13.11. Headings Descriptive. The headings of the several sections and other
portions of this Agreement are inserted for convenience only and shall not in
any way affect the meaning or construction of any provision of this Agreement.
13.12. Amendment or Waiver. Neither this Agreement nor any terms hereof or
thereof may be amended, waived or otherwise modified unless such amendment,
waiver or other modification is in writing and signed by the Borrower and the
Required Lenders, provided that no such amendment, waiver or other modification
shall, without the consent of each Lender (other than a Defaulting Lender)
affected thereby:
(a) extend any final date on or by which any Loan to be made by such Lender
may be incurred, or on which any such Loan is scheduled to be repaid (but not
prepaid) or mature, or extend any date on or by which any interest or fees
payable hereunder are scheduled to be paid, or extend any final date on which
any Commitment of such Lender is scheduled to expire or terminate or increase
any such Lender's General Revolving Commitment or extend the expiration date of
any Letter of Credit as to which such Lender is a Participant pursuant to
section 3.4 beyond the latest expiration date for a Letter of Credit provided
for herein, or reduce the rate of interest or Fees thereon (except in connection
with a waiver of the applicability of any post-default increase in interest
rates), or reduce the principal amount thereof.
(b) amend, modify or waive any provision of this section 13.12, or section
12.7, 13.4, 13.6 or 13.7(b), or any other provision of any of the Credit
Documents pursuant to which the consent or approval of all Lenders is by the
terms of such provision explicitly required;
(c) reduce the percentage specified in, or otherwise modify, the definition
of Required Lenders;
(d) consent to the assignment or transfer by the Borrower of any of its
rights and obligations under this Agreement.
No provision of section 12 may be amended without the consent of the
Administrative Agent.
-82-
13.13. Survival. All indemnities set forth herein including, without
limitation, in section 2.10, 2.11, 12.7 and 13.1, shall survive the execution
and delivery of this Agreement and the making, prepayment and repayment of
Loans.
13.14. Domicile of Loans. Each Lender may transfer and carry its Loans at,
to or for the account of any branch office, subsidiary or affiliate of such
Lender, provided that no Borrower shall be responsible for costs arising under
section 2.10 resulting from any such transfer (other than a transfer pursuant to
section 2.12) to the extent not otherwise applicable to such Lender prior to
such transfer.
13.15. Confidentiality. (a) The Administrative Agent and the Lenders agrees
to maintain the confidentiality of the Confidential Information (as defined
below), except that Confidential Information may be disclosed: (i) to its and
its Affiliates' directors, officers, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the
persons to whom such disclosure is made will be informed of the confidential
nature of such Confidential Information and instructed to keep such Confidential
Information confidential); (ii) to any direct or indirect contractual
counterparty in any swap, hedge or similar agreement (or to any such contractual
counterparty's professional advisor, so long as such contractual counterparty
(or such professional advisor) agrees to be bound by the provisions of this
section 13.15; (iii) to the extent requested by any regulatory authority; (iv)
to the extent required by applicable laws or regulations or by any subpoena or
similar legal process; (v) to any other party to this Agreement; (vi) in
connection with the exercise of any remedies hereunder or under any of the other
Credit Documents, or any suit, action or proceeding relating to this Agreement
or any of the other Credit Documents or the enforcement of rights hereunder or
thereunder; (vii) subject to an agreement containing provisions substantially
the same as those of this section 13.15, to any assignee of or participant in,
or any prospective assignee of or participant in, any of its rights or
obligations under this Agreement; (viii) with the consent of the Borrower; or
(ix) to the extent such Confidential Information (x) becomes publicly available
other than as a result of a breach of this section 13.15, or (y) becomes
available to the Administrative Agent or any Lender on a nonconfidential basis
from a source other than the Borrower.
(b) For the purposes of this section 13.15, "Confidential Information"
means all information received from the Borrower relating to the Borrower and/or
its Subsidiaries or their business, other than any such information that is (i)
identified at the time of delivery as non-confidential, or (ii) available to the
Administrative Agent or any Lender on a nonconfidential basis prior to
disclosure by the Borrower.
(c) Any person required to maintain the confidentiality of Confidential
Information as provided in this section 13.15 shall be considered to have
complied with its obligation to do so if such person has exercised the same
degree of care to maintain the confidentiality of such Confidential Information
as such person would accord to its own confidential information. The Borrower
hereby agrees that the failure of the Administrative Agent or any Lender to
comply with the provisions of this section 13.15 shall not relieve the Borrower
of any of its obligations under this Agreement or any of the other Credit
Documents.
13.16. Lender Register. The Borrower hereby designates the Administrative
Agent to serve as its agent, solely for purposes of this section 13.16, to
retain a copy of each Assignment Agreement delivered to and accepted by it and
to maintain a register (the "Lender Register") on or in which it will record the
names and addresses of the Lenders, and the Commitments from time to time of
each of such Lenders to the Borrower, the Loans made to the Borrower by each of
such Lenders and each repayment and prepayment in respect of the principal
amount of such Loans of each such Lender. Failure to make any such recordation,
or (absent manifest error) any error in such recordation, shall not affect the
Borrower's obligations in respect of such Loans. With respect to any Lender, the
transfer of any Commitment of such Lender and the rights to the principal of,
and interest on, any Loan made pursuant to such Commitment shall not be
effective until such transfer is recorded on the Lender Register maintained
-83-
by the Administrative Agent with respect to ownership of such Commitment and
Loans and prior to such recordation all amounts owing to the transferor with
respect to such Commitment and Loans shall remain owing to the transferor. The
registration of assignment or transfer of all or part of any Commitment and
Loans shall be recorded by the Administrative Agent on the Lender Register only
upon the acceptance by the Administrative Agent of a properly executed and
delivered Assignment Agreement pursuant to section 13.4(c). The Borrower agrees
to indemnify the Administrative Agent from and against any and all losses,
claims, damages and liabilities of whatsoever nature that may be imposed on,
asserted against or incurred by the Administrative Agent in performing its
duties under this section 13.16. The Lender Register shall be available for
inspection by the Borrower or any Lender at any reasonable time and from time to
time upon reasonable prior notice.
13.17. General Limitation of Liability. No claim may be made by the
Borrower, any Lender or the Administrative Agent or any other person against the
Administrative Agent or any other Lender or the Affiliates, directors, officers,
employees, attorneys or agents of any of them, for any damages other than actual
compensatory damages in respect of any claim for breach of contract or any other
theory of liability arising out of or related to the transactions contemplated
by this Agreement or any of the other Credit Documents, or any act, omission or
event occurring in connection therewith, and the Borrower, each Lender and the
Administrative Agent hereby, to the fullest extent permitted under applicable
law, waives, releases and agrees not to xxx or counterclaim upon any such claim
for any special, consequential or punitive damages, whether or not accrued and
whether or not known or suspected to exist in its favor.
13.18. No Duty. All attorneys, accountants, appraisers, consultants and
other professional persons (including the firms or other entities on behalf of
which any such person may act) retained by the Administrative Agent or any
Lender with respect to the transactions contemplated by the Credit Documents
shall have the right to act exclusively in the interest of the Administrative
Agent or such Lender, as the case may be, and shall have no duty of disclosure,
duty of loyalty, duty of care, or other duty or obligation of any type or nature
whatsoever to the Borrower, to any of its Subsidiaries or Affiliates, or to any
other person, with respect to any matters within the scope of such
representation or related to their activities in connection with such
representation. The Borrower agrees, on behalf of itself and its Subsidiaries,
not to assert any claim or counterclaim against any such persons with regard to
such matters, all such claims and counterclaims, now existing or hereafter
arising, whether known or unknown, foreseen or unforeseeable, being hereby
waived, released and forever discharged.
13.19. Lenders and Agents Not Fiduciary to Borrower, etc. The relationship
among the Borrower and its Subsidiaries and Affiliates, on the one hand, and the
Administrative Agent and the Lenders, on the other hand, is solely that of
debtor and creditor, and the Administrative Agent and the Lenders have no
fiduciary or other special relationship with the Borrower and/or any of its
Subsidiaries and Affiliates, and no term or provision of any Credit Document, no
course of dealing, no written or oral communication, or other action, shall be
construed so as to deem such relationship to be other than that of debtor and
creditor.
13.20. Survival of Representations and Warranties. All representations and
warranties herein shall survive the making of Loans hereunder, the execution and
delivery of this Agreement, the Notes and any other documents the forms of which
are attached as Exhibits hereto, the issue and delivery of the Notes, any
disposition thereof by any holder thereof, and any investigation made by the
Administrative Agent or any Lender or any other holder of any of the Notes or on
its behalf. All statements contained in any certificate or other document
delivered to the Administrative Agent or any Lender or any holder of any Notes
by or on behalf of the Borrower or any of its Subsidiaries or Affiliates
pursuant hereto or otherwise specifically for use in connection with the
transactions contemplated hereby shall constitute representations and warranties
by the Borrower hereunder, made as of the respective dates specified therein or,
if no date is specified, as of the respective dates furnished to the
Administrative Agent or any Lender.
-84-
13.21. Independence of Covenants. All covenants hereunder shall be given
independent effect so that if a particular action, event, condition or
circumstance is not permitted by any of such covenants, the fact that it would
be permitted by an exception to, or would otherwise be within the limitations or
restrictions of, another covenant, shall not avoid the occurrence of a Default
or an Event of Default if such action is taken or event, condition or
circumstance exists.
[The balance of this page is intentionally blank.]
-85-
IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of
this Agreement to be duly executed and delivered as of the date first above
written.
CALGON CARBON CORPORATION NATIONAL CITY BANK OF PENNSYLVANIA
Individually as a Lender, and as a
Letter of Credit Issuer, the Swing
Line Lender and Administrative Agent
By: By:
-------------------------------- -----------------------------------
Name: Xxxxx X. Xxxx Name: Xxxx X. Xxxxx
Title: Chief Financial Officer Title: Vice President
PNC BANK, NATIONAL ASSOCIATION
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
WACHOVIA BANK, NATIONAL ASSOCIATION
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
FLEET NATIONAL BANK
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
FIFTH THIRD BANK
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
ANNEX I
INFORMATION AS TO LENDERS
--------------------------------------------------------------------------------------------------------------------
Name of
Lender Commitment Domestic Lending Office Eurodollar Lending Office
--------------------------------------------------------------------------------------------------------------------
National City General Revolving National City Bank of Pennsylvania Same
Bank of Commitment:
Pennsylvania Primary Contact:
$22,500,000 Xxxx X. Xxxxx
00 Xxxxxxx Xxxxxx
Xxxxx Xxxx Xxxxxxxxxx, XX 00000
Revolving Telephone: (000) 000-0000
Commitment: Facsimile: (000) 000-0000
$10,000,000 Contact for Borrowings, Payments, etc.:
Attn: Xxxxx Xxxxxxxx
000 Xxxxxx Xxxxxx
Xxxxxxx Xx. 00-0000
Xxxxxxxxx, XX 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Wiring Information:
National City Bank
Pittsburgh, PA
ABA: 000-000-000
Beneficiary: Agent Services Group
Account No. 151810
Ref: Calgon Carbon
--------------------------------------------------------------------------------------------------------------------
PNC Bank, National General Revolving PNC Bank, National Association Same
Association Commitment:
Primary Contact:
$21,000,000 Xxxxxxx Xxxxxxxx
000 Xxxxx Xxxxxx, 0xx Xxxxx
Xxxxxxxxxx, XX 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Contact for Borrowings, Payments, etc.:
Attn: Xxxxxx Xxxxx-Xxxxxxx
000 Xxxxx Xxxxxx
Xxxxxxxxxx, XX 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Wiring Information:
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
Name of
Lender Commitment Domestic Lending Office Eurodollar Lending Office
--------------------------------------------------------------------------------------------------------------------
PNC Bank
Pittsburgh, PA
ABA: 000-000-000
Beneficiary: Commercial Loans
Account No. 130760016803
Ref: Calgon Carbon
--------------------------------------------------------------------------------------------------------------------
Wachovia Bank, General Revolving Wachovia Bank, National Association Same
National Commitment:
Association Primary Contact:
Xxxxxxx X. Xxxxxxxx
$21,000,000 Meetinghouse Business Center
0000 Xxxxxx Xxxx - XX0000
Xxxxxxxx Xxxxxxx, XX 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Contact for Borrowings, Payments, etc.:
Attn: Xxxxx Xxxxxx
00 Xxxxx Xxxxxxxxx Xxxxxx
Xxxxxxx, XX 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Wiring Information:
Wachovia Bank, National Association
Roanoke, VA
ABA: 000-000-000
Beneficiary: Commercial Support Services
Account No. 1459160000005
Ref: Calgon Carbon
Attn: Bank #(20), Obligor #(0000000000),
Obligation #(34)
--------------------------------------------------------------------------------------------------------------------
Fleet National Bank General Revolving Fleet National Bank Same
Commitment:
Primary Contact:
Xxxxx Xxxxxx
$19,000,000 000 Xxxxxxx Xxxxxx, #0000
Xxxxxxxxxx, XX 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Contact for Borrowings, Payments, etc.:
Attn: Xxxxxx Xxxxxxxx
0000 Xxxxxx Xxxxx Xxxx
Xxxx Xxxxxxxxxx, XX 00000
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
Name of
Lender Commitment Domestic Lending Office Eurodollar Lending Office
--------------------------------------------------------------------------------------------------------------------
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Wiring Information:
Fleet Bank N.A.
ABA: 000-000-000
Account No. 0000000-15901
Ref: Calgon Carbon Corp.
Attn: Xxxxxx Xxxxxxxx
--------------------------------------------------------------------------------------------------------------------
Fifth Third Bank General Revolving Fifth Third Bank Same
Commitment:
Primary Contact:
$16,500,000 Xxx Xxxxxxxx
00 Xxxxxxx Xxxxxx, Xxxxx 000
Xxxxxxxxxx, XX 00000
Telephone: (000) 000-0000 x00
Facsimile: (000) 000-0000
Contact for Borrowings, Payments, etc.:
Attn: Xxx Xxxxx
0000 Xxxx Xxxxx Xxxxxx
Xxxxxxxxx, XX 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Wiring Information:
Fifth Third Bank
Cincinnati, OH
ABA: 000-000-000
Beneficiary: Fifth Third Bank -
Northeastern Ohio
Account No. 00000000
Ref: Calgon Carbon
--------------------------------------------------------------------------------------------------------------------
ANNEX II
INFORMATION AS TO SUBSIDIARIES
-------------------------------------------------------------------------------------------
Percentage of
Outstanding Stock or
Other Equity
Interests Owned (Owned by
Jurisdiction Where the Borrower unless
Name of Subsidiary Type of Organization Organized otherwise noted)
-------------------------------------------------------------------------------------------
ANNEX III
DESCRIPTION OF EXISTING INDEBTEDNESS
ANNEX IV
DESCRIPTION OF EXISTING LIENS
ANNEX V
DESCRIPTION OF EXISTING ADVANCES, LOANS, INVESTMENTS AND GUARANTEES
ANNEX VI
DESCRIPTION OF EXISTING LETTERS OF CREDIT
ANNEX VII
DESCRIPTION OF MATERIAL RECOVERY EVENTS
ANNEX VIII
ALTERNATIVE CURRENCIES
Euros
Canadian Dollars
Pounds Sterling
Japanese Yen
New Zealand Dollars
ANNEX IX
DESCRIPTION OF CONTINGENT LIABILITIES WITH RESPECT TO POST-RETIREMENT
WELFARE BENEFIT PLANS
ANNEX X
DESCRIPTION OF DOCUMENTS REQUIRED TO BE SCHEDULED PURSUANT TO
SECTION 9.11
EXHIBIT A-1
GENERAL REVOLVING NOTE
$
---------------
Pittsburgh, Pennsylvania March 21, 2003
FOR VALUE RECEIVED, the undersigned CALGON CARBON CORPORATION, a Delaware
corporation (herein, together with its successors and assigns, the "Borrower"),
hereby promises to pay to the order of (the
--------------------------
"Lender"), in lawful money of the United States of America, provided that
General Revolving Loans denominated in an Alternative Currency shall be payable
in such Alternative Currency, in immediately available funds, at the Payment
Office (such term and certain other terms used herein without definition shall
have the meanings ascribed thereto in the Credit Agreement referred to below) of
National City Bank of Pennsylvania (the "Administrative Agent"), on the Maturity
Date, the principal sum of DOLLARS AND NO CENTS ($________) or,
----------------
if less, the then unpaid principal amount of all General Revolving Loans made by
the Lender to the Borrower pursuant to the Credit Agreement.
The Borrower promises also to pay interest on the unpaid principal amount
of each General Revolving Loan made by the Lender to the Borrower in like money
at said office from the date hereof until paid at the rates and at the times
provided in section 2.8 of the Agreement.
This Note is one of the General Revolving Notes referred to in the Credit
Agreement, dated as of March 21, 2003, among the Borrower, the financial
institutions from time to time party thereto (including the Lender), and
National City Bank of Pennsylvania, as Administrative Agent (as from time to
time in effect, the "Credit Agreement"), and is entitled to the benefits thereof
and of the other Credit Documents (as defined in the Credit Agreement). As
provided in the Credit Agreement, this Note is subject to mandatory prepayment
prior to the Maturity Date, in whole or in part.
In case an Event of Default shall occur and be continuing, the principal of
and accrued interest on this Note may be declared to be due and payable in the
manner and with the effect provided in the Credit Agreement.
The Borrower hereby waives presentment, demand, protest or notice of any
kind in connection with this Note. No failure to exercise, or delay in
exercising, any rights hereunder on the part of the holder hereof shall operate
as a waiver of any such rights.
THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW
OF THE COMMONWEALTH OF PENNSYLVANIA.
CALGON CARBON CORPORATION
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
LOANS AND PAYMENTS OF PRINCIPAL
--------------------------------------------------------------------------------
Amount
Of
Date Amount Type Principal Unpaid
of of Of Interest Paid or Principal Made
Notation Loan Loan Period Prepaid Balance By
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EXHIBIT A-2
SWING LINE REVOLVING NOTE
$10,000,000
Pittsburgh, Pennsylvania March 21, 2003
FOR VALUE RECEIVED, the undersigned CALGON CARBON CORPORATION, a Delaware
corporation (herein, together with its successors and assigns, the "Borrower"),
hereby promises to pay to the order of NATIONAL CITY BANK OF PENNSYLVANIA (the
"Lender"), in lawful money of the United States of America in immediately
available funds, at the Payment Office (such term and certain other terms used
herein without definition shall have the meanings ascribed thereto in the Credit
Agreement referred to below) of National City Bank of Pennsylvania (the
"Administrative Agent"), the principal sum of TEN MILLION DOLLARS AND NO CENTS
($10,000,000) or, if less, the then unpaid principal amount of all Swing Line
Revolving Loans made by the Lender to the Borrower pursuant to the Credit
Agreement. The Borrower will pay the principal amount of any Swing Line
Revolving Loan no later than the Maturity Date.
The Borrower promises also to pay interest on the unpaid principal amount
of each Swing Line Revolving Loan made by the Lender in like money at said
office from the date hereof until paid at the rates and at the times provided in
section 2.8 of the Credit Agreement.
This Note is the Swing Line Revolving Note referred to in the Credit
Agreement, dated as of March 21, 2003, among the Borrower, the financial
institutions from time to time party thereto (including the Lender), and
National City Bank of Pennsylvania, as Administrative Agent (as from time to
time in effect, the "Credit Agreement"), and is entitled to the benefits thereof
and of the other Credit Documents (as defined in the Credit Agreement). As
provided in the Agreement, this Note is subject to mandatory prepayment prior to
the maturity date of any Swing Line Revolving Loan, in whole or in part.
In case an Event of Default shall occur and be continuing, the principal of
and accrued interest on this Note may be declared to be due and payable in the
manner and with the effect provided in the Credit Agreement.
The Borrower hereby waives presentment, demand, protest or notice of any
kind in connection with this Note. No failure to exercise, or delay in
exercising, any rights hereunder on the part of the holder hereof shall operate
as a waiver of any such rights.
THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW
OF THE COMMONWEALTH OF PENNSYLVANIA.
CALGON CARBON CORPORATION
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
LOANS AND PAYMENTS OF PRINCIPAL
--------------------------------------------------------------------------------
Amount
Type of Of
Date Amount Loan/or Principal Unpaid
of of Interest Paid or Principal Made
Notation Loan Rate Maturity Prepaid Balance By
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EXHIBIT B-1
NOTICE OF BORROWING
EXHIBIT B-2
NOTICE OF CONVERSION
EXHIBIT B-3
NOTICE OF REDENOMINATION
[Date]
National City Bank of Pennsylvania,
as Administrative Agent for the Lenders
party to the Credit Agreement referred to below
National City Bank of Pennsylvania
Attn: Agent Services
Locator No. 01-3028
000 Xxxxxx Xxxxxx
Xxxxxxxxx, Xxxx 00000
Attention: Commercial Loan Operations
Re: Notice of Redenomination of Loans under Credit Agreement,
dated as of March 21, 2003, with Calgon Carbon Corporation
Ladies and Gentlemen:
The undersigned, Calgon Carbon Corporation (the "Borrower"), refers to the
Credit Agreement, dated as of March 21, 2003 (as amended from time to time, the
"Credit Agreement," the terms defined therein being used herein as therein
defined), among the Borrower, the financial institutions from time to time party
thereto (the "Lenders"), and National City Bank of Pennsylvania, as
Administrative Agent for such Lenders, and hereby gives you notice pursuant to
section 2.7(b) of the Credit Agreement, that the undersigned hereby requests one
or more Redenominations of Loans into Loans of another currency, and in that
connection sets forth in the schedule attached hereto the information relating
to each such Redenomination.
Very truly yours,
CALGON CARBON CORPORATION
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
REDENOMINATION SCHEDULE
Proposed Redenomination #1
[of the Loans described in the first table below
into Loans described in the second table below]
------------------------------------------------------------------------------------------
Date Interest Period
of Aggregate Amount if Loans are
Loan Type of Loans of Loans Eurodollar Loans
------------------------------------------------------------------------------------------
One Month
Prime Rate Loans $
-----------, ----------------------
200 Two Months
--
Eurodollar Loans Alternative Currency and
Amount: Three Months
-------------
[Circle One of Above] [Complete one of above] Six Months
[Circle one of above]
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Date Interest Period
of Aggregate Amount if Loans are
Loan Type of Loans of Loans Eurodollar Loans
------------------------------------------------------------------------------------------
One Month
Prime Rate Loans $
-----------, ----------------------
200 Two Months
--
Eurodollar Loans Alternative Currency and
Amount: Three Months
-------------
[Circle One of Above] [Complete one of above] Six Months
[Circle one of above]
------------------------------------------------------------------------------------------
Proposed Redenomination #2
[of the Loans described in the first table below
into Loans described in the second table below]
------------------------------------------------------------------------------------------
Date Interest Period
of Aggregate Amount if Loans are
Loan Type of Loans of Loans Eurodollar Loans
------------------------------------------------------------------------------------------
One Month
Prime Rate Loans $
-----------, ----------------------
200 Two Months
--
Eurodollar Loans Alternative Currency and
Amount: Three Months
-------------
[Circle One of Above] [Complete one of above] Six Months
[Circle one of above]
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Date Interest Period
of Aggregate Amount if Loans are
Loan Type of Loans of Loans Eurodollar Loans
------------------------------------------------------------------------------------------
One Month
Prime Rate Loans $_____________________
-----------,
200 Two Months
--
Eurodollar Loans Alternative Currency and
Amount: Three Months
-------------
[Circle One of Above] [Complete one of above] Six Months
[Circle one of above]
------------------------------------------------------------------------------------------
EXHIBIT B-4
LETTER OF CREDIT REQUEST
No. /1/
--------------
Dated /2/
----------
National City Bank of Pennsylvania,
as Administrative Agent for the Lenders party
to the Credit Agreement referred to below
National City Bank of Pennsylvania
Attn: Agent Services
Locator No. 01-3028
000 Xxxxxx Xxxxxx
Xxxxxxxxx, Xxxx 00000
Attention: Letter of Credit Operations
Ladies and Gentlemen:
The undersigned, Calgon Carbon Corporation (the "Borrower"), refers to the
Credit Agreement, dated as of March 21, 2003 (as amended, modified or
supplemented from time to time, the "Credit Agreement," the capitalized terms
defined therein being used herein as therein defined), among the Borrower, the
financial institutions from time to time party thereto (the "Lenders"), and
National City Bank of Pennsylvania, as Administrative Agent for such Lenders.
The undersigned hereby requests that , as a Letter of
--------------------
Credit Issuer, issue a Letter of Credit on , 200 (the "Date of
-------------- --
Issuance") in the aggregate amount of [U.S.$_________] [amount in specified
Alternative Currency], for the account of .
--------------------
The beneficiary of the requested Letter of Credit will be
,/3/ and such Letter of Credit will be in support of
---------------
/4/ and will have a stated termination date of
---------------
./5/
----------------
The undersigned hereby certifies that after giving effect to the requested
issuance of the Letter of Credit:
(i) $_________ principal amount of General Revolving Loans will be
outstanding; and
(ii) the Letter of Credit Outstandings will be $___________.
----------
/1/ Letter of Request Number.
/2/ Date of Letter of Request (at least five Business Days prior to the Date of
Issuance or such lesser number as may be agreed by the relevant Letter of
Credit Issuer).
/3/ Insert name and address of beneficiary.
/4/ Insert description of the supported obligations, name of agreement and/or
the commercial transaction to which this Letter of Credit Request relates.
/5/ Insert last date upon which drafts may be presented (which may not be
beyond the 15th Business Day next preceding the Revolving Maturity Date).
The undersigned hereby certifies that the following statements are true on
the date hereof, and will be true on the Date of Issuance:
(A) the representations and warranties of the Borrower contained in
the Credit Agreement and the other Credit Documents are and will be true
and correct in all material respects, before and after giving effect to the
Proposed Borrowing and to the application of the proceeds thereof, as
though made on such date, except to the extent that such representations
and warranties expressly relate to an earlier specified date, in which case
such representations and warranties were true and correct in all material
respects as of the date when made; and
(B) no Default or Event of Default has occurred and is continuing, or
would result after giving effect to the issuance of the Letter of Credit
requested hereby.
Copies of all documentation with respect to the supported transaction are
attached hereto.
Very truly yours,
CALGON CARBON CORPORATION
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
ACKNOWLEDGED AND AGREED
TO BY:
NATIONAL CITY BANK OF
PENNSYLVANIA
By:
---------------------------------
Name:
-------------------------------
Title:
------------------------------
EXHIBIT C
----------
FORM OF
CORPORATE CERTIFICATE
----------
CALGON CARBON CORPORATION
Corporate Certificate
The undersigned certifies that he is the Secretary of CALGON CARBON
CORPORATION, a Delaware corporation (the "Company"), and that as such he is
authorized to execute and deliver this Certificate on behalf of the Company, and
further certifies that:
(1) Filing of Charter Documents. No corporate document amending or
otherwise modifying the Company's certificate of incorporation has been
filed with the Secretary of State of Delaware since ./1/ Attached
---------
hereto as Exhibit A is a copy of the Company's Certificate of
Incorporation, certified by the Delaware Secretary of State as of a recent
date.
(2) No Proceedings for Amendments, Merger, etc. No proceeding for the
amendment of the Certificate of Incorporation of the Company, or for the
merger, consolidation, sale of substantially all of the assets and
business, liquidation or dissolution of the Company has been taken on or
since such date or is pending.
(3) Organization and Standing. Attached hereto as Exhibit B is a
long-form good standing certificate, dated as of a recent date, from the
Delaware Secretary of State evidencing that the Company is validly existing
in good standing under the laws of the State of Delaware. Attached hereto
as Exhibit C are certificates, each dated as of a recent date, evidencing
the Company's good standing as a foreign corporation in the following
jurisdictions: .
---------
(4) Bylaws. Attached hereto as Exhibit D is a complete and correct
copy of the Bylaws of the Company, as in effect since ,/2/ and
----------
thereafter to and including the date hereof.
(5) Resolutions. Attached hereto as Exhibit E is a complete and
correct copy of resolutions duly adopted by the duly elected Directors of
the Company at a meeting duly called and held on , 2003, at which a
-------
quorum was present and acting throughout./3/ Such resolutions have not been
amended, modified or rescinded and are in full force and effect on the date
hereof. Such resolutions constitute all of the resolutions adopted by the
Directors of the Company incident to the transactions contemplated by the
Credit Agreement (the "Credit Agreement;" with capitalized terms used
herein without definition having the respective
----------
/1/ Insert the date of filing of the last document affecting the charter of the
Company as identified in a long form good standing certificate or certified
copy of the charter and all amendments of the Company.
/2/ Insert a date prior to the execution of any documents incident to the
transaction.
/3/
If the resolutions have been adopted by written consent, the following
alternative is suggested:
Attached hereto as Exhibit B is a complete and correct copy of resolutions duly
adopted by the duly elected Directors of the Company by unanimous written
consent dated [as of] , 2003.
---------
If the resolutions have been adopted by a committee of Directors, the following
is suggested:
Attached hereto as Exhibit B is a complete and correct copy of resolutions duly
adopted by the duly elected [Executive] Committee of the Directors of the
Company at a meeting duly called and held on , 2003, at which a quorum
-------
was present and acting throughout. Attached hereto as Exhibit C is a complete
and correct copy of resolutions duly adopted by the duly elected Directors of
the Company at a meeting duly called and held on , 2003, at which a
-------
quorum was present and acting throughout, which resolutions set forth the powers
of the [Executive] Committee of the Directors of the Company.
meanings ascribed thereto in the Credit Agreement, dated as of March 21,
2003, among the Company, the financial institutions named as Lenders
therein, and National City Bank of Pennsylvania, as Administrative Agent
for the Lenders under the Credit Agreement). The execution, delivery and
performance by the Company of the Credit Agreement, and all other documents
to which the Company is to be a party as contemplated by the Credit
Agreement, have been duly authorized by such resolutions.
(6) Incumbency. Each of the following persons now is and at all times
since prior to ,/4/ has been a duly elected or appointed
------------
officer of the Company, holding the office or offices in the Company set
opposite his or her name below, and that the signature of each such person
set opposite his or her name below is his or her own true original or
facsimile signature:
Name Title Signature
------------------ -------------------------------- ------------------------
President and Chief Executive
------------------ Officer ------------------------
Vice President & Chief Financial
------------------ Officer ------------------------
Treasurer
------------------ ------------------------
Xxxxxxx X. Xxxxxxx Vice President, General Counsel
and Secretary ------------------------
IN WITNESS WHEREOF, the undersigned has duly executed and delivered this
Certificate on behalf of the Company on the date specified below.
---------------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Vice President, General Counsel and Secretary
Dated: March 21, 2003
The undersigned, one of the officers named in the foregoing Certificate,
hereby confirms such Certificate as of the date hereof.
---------------------------------------------
Name:
---------------------------------------
Title:
--------------------------------------
----------
/4/ Insert a date prior to the execution of any documents incident to the
transaction.
EXHIBIT D-1
----------
FORM OF
OPINION
----------
EXHIBIT D-1
FORM OF OPINION OF COUNSEL TO THE BORROWER
March 21, 2003
To the Administrative Agent and
each of the Lenders (as defined below)
party to the Credit Agreement
referred to below
c/o National City Bank of Pennsylvania
Agent Services
000 Xxxxxx Xxxxxx
Xxxxxxxxx, Xxxx 00000
Re: $100,000,000 Credit Agreement with Calgon Carbon Corporation
Ladies and Gentlemen:
I am the Vice President, General Counsel and Secretary of Calgon Carbon
Corporation, a Delaware corporation (the "Borrower"), and have acted as such in
connection with (i) the execution and delivery of the Credit Agreement, dated as
of March 21, 2003 (the "Credit Agreement"), among the Borrower, the lending
institutions named therein as lenders (the "Lenders"), and National City Bank of
Pennsylvania, as a Lender, the Swing Line Lender and as Administrative Agent
(the "Administrative Agent"), and (ii) the transactions contemplated thereby.
Unless otherwise indicated, capitalized terms used herein but not otherwise
defined herein shall have the respective meanings set forth in the Credit
Agreement. This Opinion Letter is delivered by me to you at the request of the
Borrower in accordance with the requirements of section 7.1(f) of the Credit
Agreement.
I have examined originals or copies, certified or otherwise identified to
my satisfaction, of such documents, records and matters of law as I have
considered necessary as a basis for the opinions set forth herein, including
without limitation (i) the Credit Agreement, and (ii) the $100,000,000 aggregate
face amount of General Revolving Notes, and $10,000,000 face amount Swing Line
Revolving Note, executed and delivered by the Borrower pursuant to the Credit
Agreement (collectively, the "Credit Documents").
In my examination I have assumed the genuineness of all signatures, the
authenticity of all documents submitted to me as originals, the conformity to
original documents of all documents submitted to me as copies and the
authenticity of the originals of such copies. As to questions of fact not
independently verified by me, I have relied, to the extent I deemed appropriate,
upon representations and certificates of officers of the Borrower, public
officials and other appropriate persons. All assumptions and statements of
reliance as to factual matters herein have been made without any independent
investigation or verification on my part, except to the extent otherwise
expressly stated, and I express no opinion with respect to the subject matter or
accuracy of such assumptions or items relied upon.
My examination of matters of law in connection with the opinions expressed
herein has been limited to the federal laws of the United States, the laws of
the Commonwealth of Pennsylvania, and the General Corporation Law of the State
of Delaware, in each instance as existing and in effect on the date hereof and
accordingly, no opinions expressed herein shall be deemed to cover any other
laws.
I have neither examined nor requested an examination of the indices or
records of any court or governmental or other agency, authority, instrumentality
or entity, nor have I made inquiry of any person or entity, except as expressly
set forth in this Opinion Letter. In addition, I have not independently verified
or investigated the accuracy or completeness of any factual information and,
because the scope of my examination did not include such verification, I assume
no responsibility for the accuracy or completeness of any such information.
As used herein, "to my knowledge" shall mean to my actual knowledge.
Based upon the foregoing and subject to the qualifications, assumptions and
limitations contained in this Opinion Letter, I am of the opinion that:
1. Corporate Status of Borrower, etc. The Borrower (i) is a validly
existing corporation in good standing under the laws of the State of
Delaware and has the corporate power and authority to own its property and
assets and to transact the business in which it is engaged and presently
proposed to engage, and (ii) to my knowledge, is qualified and in good
standing in each jurisdiction in which it has a facility, except in each
instance where the failure to be so qualified or in good standing would not
have a Material Adverse Effect.
2. Corporate Power and Authority, etc. The Borrower has the corporate
power and authority to execute, deliver and carry out the terms and
provisions of the Credit Documents to which it is a party and has taken all
necessary corporate action to authorize the execution, delivery and
performance of the Credit Documents to which it is a party.
3. Credit Documents. The Borrower has duly executed and delivered each
Credit Document to which it is a party and each such Credit Document to
which it is a party constitutes the legal, valid and binding agreement or
obligation of such the Borrower enforceable against it in accordance with
its terms, except to the extent that the enforceability thereof may be
limited by (i) applicable bankruptcy, insolvency, reorganization,
fraudulent transfer, moratorium or similar laws, and related judicial
doctrines, from time to time in effect affecting creditors' rights and
remedies generally, (ii) general principles of equity (including, without
limitation, standards of materiality, good faith, fair dealing and
reasonableness, equitable defenses and limits on the availability of
equitable remedies), whether such principles are considered in a proceeding
at law or in equity, and (iii) the qualification that certain other
provisions of such Credit Documents may be unenforceable in whole or in
part under the laws (including judicial decisions) of the Commonwealth of
Pennsylvania, but the inclusion of such provisions does not affect the
validity as against the Borrower of any of such Credit Documents as a
whole, and such Credit Documents contain adequate provisions for enforcing
payment of the obligations governed thereby.
4. No Violation. Neither the execution, delivery and performance by
the Borrower of the Credit Documents to which it is party nor compliance
with the terms and provisions thereof (i) will contravene any provision of
any United States Federal or Pennsylvania law, statute, rule, regulation,
order, writ, injunction or decree of any court or governmental
instrumentality applicable to the Borrower or its properties and assets,
(ii) will conflict with or result in any breach of, any of the terms,
covenants, conditions or provisions of, or constitute a default under, or
result in the creation or imposition of (or the obligation to create or
impose) any Lien upon any of the property or assets of the Borrower
pursuant to the terms of any promissory note, bond, debenture, indenture,
mortgage, deed of trust, credit or loan agreement, or any other material
agreement or other instrument, known to me after due inquiry, to which the
Borrower is a party or by which it or any of its property or assets are
bound or to which it may be subject, or (iii) will violate any provision of
the articles of incorporation or by laws of the Borrower.
5. Governmental Approvals. No order, consent, approval, license,
authorization, or validation of, or filing, recording or registration with,
or exemption by, any Pennsylvania or
United States federal governmental or public body or authority, is required
to authorize or is required as a condition to (i) the execution, delivery
and performance by the Borrower of any Credit Document to which it is a
party, or (ii) the legality, validity, binding effect or enforceability of
any Credit Document to which the Borrower is a party.
6. Litigation. To my knowledge, there are no actions, suits or
proceedings pending or overtly threatened in writing with respect to the
Borrower or any of its Subsidiaries (i) that have, or could reasonably be
expected to have, a Material Adverse Effect, or (ii) which question the
validity or enforceability of any of the Credit Documents, or the validity
of any action to be taken by the Borrower pursuant to any of the Credit
Documents.
7. Investment Company Act, etc. Neither the Borrower nor any of its
Subsidiaries is subject to regulation with respect to the creation or
incurrence of Indebtedness under the Investment Company Act of 1940, as
amended, the Interstate Commerce Act, as amended, the Federal Power Act, as
amended, the Public Utility Holding Company Act of 1935, as amended, or any
applicable Pennsylvania state public utility law.
**********
The opinions set forth above are subject to the following assumptions,
qualifications and limitations:
(1) With respect to the opinion in paragraph 4, I call your attention
to the provisions of Section 911(b) of the Pennsylvania Crimes Code (the
"Crimes Code"), 18 Pa.C.S. (S) 911(b), which makes it unlawful to use or
invest income derived from a pattern of "racketeering activity" in the
establishment or operation of any enterprise. "Racketeering activity", as
defined in the Crimes Code, includes the collection of money or other
property in full or partial satisfaction of a debt which arose as the
result of the lending of money or other property at a rate of interest
exceeding 25% per annum where not otherwise authorized by law. Accordingly,
the opinion in paragraph 4 is qualified to the extent, if any, that the
statute referenced in this paragraph (1) may be applicable to this
transaction.
(2) I express no opinion as to Section 13.2 of the Credit Agreement
insofar as it authorizes each Lender to set off and apply any deposits at
any time held, and any other indebtedness at any time owing, by such Lender
to or for the account of the Borrower, and insofar as it provides that any
Person purchasing a participation from a Lender may exercise set-off or
similar rights with respect to such participation.
(3) I express no opinion as to Section 6.5 of the Credit Agreement.
(4) My opinions above are subject to the proviso that no opinion is
given as to the application of any antitrust or securities laws.
(5) In making my examination of documents which call for execution by
parties other than the Borrower ("Other Parties"), I have assumed the
enforceability thereof against all the Other Parties; and I have assumed
that each of the Other Parties (i) has satisfied those legal requirements
that are applicable to it to the extent necessary to make the Loan
Documents enforceable against it, and (ii) has complied with all legal
requirements pertaining to its status as such status relates to its rights
to enforce the Credit Documents against the Borrower.
(6) As used in paragraph 3, the term "fraudulent transfer laws" is
understood to include laws relating to restrictions on the ability of a
corporation to declare or pay dividends, reacquire shares of its own stock,
or make other distributions on or with respect to its capital stock.
(7) The opinions in this Opinion Letter are limited to the matters set
forth herein; no opinion may be inferred or implied beyond the matters
expressly stated in this Opinion Letter; and the opinions must be read in
conjunction with the assumptions, limitations, exceptions and
qualifications set forth in this Opinion Letter. I assume no obligation to
update this Opinion Letter to advise you of any changes in facts or laws
subsequent to the date hereof.
This Opinion Letter is being furnished only to the addresses and is solely
for their benefit and the benefit of their participants and assigns in
connection with the transactions contemplated by the Credit Documents. This
Opinion Letter may not be relied upon for any other purpose, or relied upon by
any other person, firm or corporation for any purpose, without my prior written
consent.
Very truly yours,
EXHIBIT D-2
----------
FORM OF
SOLVENCY CERTIFICATE
----------
SOLVENCY CERTIFICATE
CALGON CARBON CORPORATION, a Delaware corporation (the "Borrower"), hereby
certifies that the officer executing this Solvency Certificate is the Chief
Financial Officer of the Borrower and that such officer is duly authorized to
execute this Solvency Certificate, which is hereby delivered on behalf of the
Borrower pursuant to section 7.1(g) of the Credit Agreement, dated as of March
21, 2003 (as amended, supplemented or otherwise modified from time to time, the
"Credit Agreement"; terms defined or referenced therein and not otherwise
defined or referenced herein being used herein as therein defined or
referenced), among the Borrower, the Lenders named therein, and National City
Bank of Pennsylvania, as Administrative Agent.
The Borrower further certifies that such officer is generally familiar with
the properties, businesses and assets of the Borrower and has carefully reviewed
the Credit Documents and the contents of this Solvency Certificate and, in
connection herewith, has reviewed such other documentation and information and
has made such investigations and inquiries as the Borrower and such officer deem
necessary and prudent therefor. The Borrower further certifies that the
financial information and assumptions that underly and form the basis for the
representations made in this Solvency Certificate were reasonable when made and
were made in good faith and continue to be reasonable as of the date hereof.
The Borrower will apply a portion of the proceeds from the Loans under the
Credit Agreement to retire approximately $48,736,845.35 million of other
Indebtedness of the Borrower.
The Borrower understands that the Lenders are relying on the truth and
accuracy of this Solvency Certificate in connection with the Credit Documents.
The Borrower hereby further certifies that:
1. The Borrower has reviewed the Financial Projections that were prepared
on the basis of the estimates and assumptions stated therein, a copy of that
Financial Projections were furnished to the Lenders. The Financial Projections
were prepared in good faith and represent reasonable estimates of future
financial performance and are reasonable in light of the business conditions
existing on the date hereof. However, the Borrower can provide no assurances as
to the outcome of any such projections. On the date hereof, immediately before
and immediately after giving effect to the Contemplated Transactions, to the
best of the Borrower's knowledge, the fair value of the property and assets of
the Borrower is greater than the total amount of liabilities (including
contingent, subordinated, absolute, fixed, matured or unmatured and liquidated
or unliquidated liabilities) of the Borrower.
2. On the date hereof, the present fair salable value of the property and
assets of the Borrower exceeds the amount that will be required to pay the
probable liabilities of the Borrower on its debts as they become absolute and
matured.
3. The Borrower does not currently intend or believe that it will incur
debts and liabilities that will be beyond its ability to pay as such debts and
liabilities mature.
4. On the date hereof, the Borrower is not engaged in business or in a
transaction, and is not about to engage in business or in a transaction, for
that its property and assets would constitute unreasonably small capital.
5. The Borrower does not intend to hinder, delay or defraud either present
or future creditors or any other person to which the Borrower is or, on or after
the date hereof, will become indebted.
IN WITNESS WHEREOF, the Borrower has caused this Solvency Certificate
to be executed by its Chief Financial Officer thereunto duly authorized, on
and as of this 21st day of March, 2003.
CALGON CARBON CORPORATION
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
EXHIBIT E
----------
FORM OF
ASSIGNMENT AGREEMENT
----------
ASSIGNMENT AGREEMENT
DATE:
-------------
Reference is made to the Credit Agreement described in Item 2 of Annex I
annexed hereto (as such Credit Agreement may hereafter be amended, modified or
supplemented from time to time, the "Credit Agreement"). Unless defined in Annex
I attached hereto, terms defined in the Credit Agreement are used herein as
therein defined.
(the "Assignor") and (the "Assignee") hereby
------------- --------------
agree as follows:
1. The Assignor hereby sells and assigns to the Assignee without recourse
and without representation or warranty (other than as expressly provided
herein), and the Assignee hereby purchases and assumes from the Assignor, that
interest in and to all of the Assignor's rights and obligations under the Credit
Agreement as of the date hereof that represents the percentage interest
specified in Item 4 of Annex I (the "Assigned Share") of all of Assignor's
outstanding rights and obligations under the Credit Agreement indicated in Item
4 of Annex I, including, without limitation, all rights and obligations with
respect to the Assigned Share of the Assignor's Commitment and of the Loans and
the Notes held by the Assignor. After giving effect to such sale and assignment,
the Assignee's Commitment will be as set forth in Item 4 of Annex I.
2. The Assignor (i) represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder, that such
interest is free and clear of any liens or security interests, and that it is
duly authorized to enter into and perform the terms of this Assignment
Agreement; (ii) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with the Credit Agreement or the other Credit Documents
or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of the Credit Agreement or the other Credit Documents or any other
instrument or document furnished pursuant thereto; and (iii) makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Borrower or any of its Subsidiaries or the
performance or observance by the Borrower of any of its obligations under the
Credit Agreement or the other Credit Documents or any other instrument or
document furnished pursuant thereto.
3. The Assignee (i) represents and warrants that it is duly authorized to
enter into and perform the terms of this Assignment Agreement; (ii) confirms
that it has received a copy of the Credit Agreement and the other Credit
Documents, together with copies of the financial statements referred to therein,
and such other documents and information as it has deemed appropriate to make
its own credit analysis and decision to enter into this Assignment Agreement;
(iii) agrees that it will, independently and without reliance upon the
Administrative Agent, the Assignor or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Credit
Agreement; (iv) appoints and authorizes the Administrative Agent to take such
action as agent on its behalf and to exercise such powers under the Credit
Agreement and the other Credit Documents as are delegated to the Administrative
Agent by the terms thereof, together with such powers as are reasonably
incidental thereto; [and] (v) agrees that it will perform in accordance with
their terms all of the obligations that by the terms of the Credit Agreement are
required to be performed by it as a Lender[; and (vi) to the extent legally
entitled to do so, attaches the forms described in section 6.4(b)(ii) of the
Credit Agreement/5/.
----------
/5/ If the Assignee is organized under the laws of a jurisdiction outside the
United States.
4. Following the execution of this Assignment Agreement by the Assignor and
the Assignee, an executed original hereof (together with all attachments) will
be delivered to the Administrative Agent. The effective date of this Assignment
Agreement shall be the date of execution hereof by the Assignor, the Assignee
and the consent hereof by the Administrative Agent and the receipt by the
Administrative Agent of the administrative fee referred to in section 13.4(c) of
the Credit Agreement, unless otherwise specified in Item 5 of Annex I hereto
(the "Settlement Date").
5. Upon the delivery of a fully executed original hereof to the
Administrative Agent, as of the Settlement Date, (i) the Assignee shall be a
party to the Credit Agreement and, to the extent provided in this Assignment
Agreement, have the rights and obligations of a Lender thereunder and under the
other Credit Documents, and (ii) the Assignor shall, to the extent provided in
this Assignment Agreement, relinquish its rights (except any rights to indemnity
by the Borrower) and be released from its obligations under the Credit Agreement
and the other Credit Documents.
6. It is agreed that upon the effectiveness hereof, the Assignee shall be
entitled to (x) all interest on the Assigned Share of the Loans at the rates
specified in Item 6 of Annex I, and (y) all Facility Fee (if applicable) on the
Assigned Share of the Commitment at the rate specified in Item 7 of Annex I,
that, in each case, accrue on and after the Settlement Date, such interest and,
if applicable, Facility Fees, to be paid by the Administrative Agent, upon
receipt thereof from the Borrower, directly to the Assignee. It is further
agreed that all payments of principal made by the Borrower on the Assigned Share
of the Loans that occur on and after the Settlement Date will be paid directly
by the Administrative Agent to the Assignee. Upon the Settlement Date, the
Assignee shall pay to the Assignor an amount specified by the Assignor in
writing which represents the Assigned Share of the principal amount of the
respective Loans made by the Assignor pursuant to the Credit Agreement that are
outstanding on the Settlement Date, net of any closing costs, and that are being
assigned hereunder. The Assignor and the Assignee shall make all appropriate
adjustments in payments under the Credit Agreement for periods prior to the
Settlement Date directly between themselves on the Settlement Date.
7. THIS ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA.
* * *
IN WITNESS WHEREOF, the parties hereto have caused this Assignment
Agreement to be executed by their respective officers thereunto duly authorized,
as of the date first above written.
[NAME OF ASSIGNOR], [NAME OF ASSIGNEE],
as Assignor as Assignee
By: By:
--------------------------------- ------------------------------------
Vice President Vice President
Acknowledged and agreed.
NATIONAL CITY BANK OF PENNSYLVANIA,
as Administrative Agent
By:
---------------------------------
[NAME OF ASSIGNOR], [NAME OF ASSIGNEE],
as Assignor as Assignee
By: By:
--------------------------------- ------------------------------------
Vice President Vice President
Vice President
ANNEX I
FOR
ASSIGNMENT AND ASSUMPTION AGREEMENT
1. The Borrower: CALGON CARBON CORPORATION
2. Name and Date of Credit Agreement:
Credit Agreement, dated as of March 21, 2003, among Calgon
Carbon Corporation, the Lenders from time to time party
thereto, and National City Bank of Pennsylvania, as
Administrative Agent.
3. Date of Assignment Agreement:
--------- ---, -----
4. Amounts (as of date of item #3 above):
----------------------------------------------------------------------------------------------------------
General Revolving General Revolving Swing Line Revolving Swing Line Revolving
Commitment Loans Commitment Loans
----------------------------------------------------------------------------------------------------------
Aggregate Amount for $_____ $_____ $_____ $_____
all Lenders
----------------------------------------------------------------------------------------------------------
Assigned Share % % % %
----- ----- ----- -----
----------------------------------------------------------------------------------------------------------
Amount of Assigned $_____ $_____ $_____ $_____
Share
----------------------------------------------------------------------------------------------------------
Amount Retained by $_____ $_____ $_____ $_____
Assignor
----------------------------------------------------------------------------------------------------------
5. Settlement Date:
--------- ---, ---
6. Rate of Interest
to the Assignee: As set forth in section 2.8 of the Credit Agreement
(unless otherwise agreed to by the Assignor and the
Assignee)./6/
----------
/6/ The Borrower and the Administrative Agent shall direct the entire amount of
the interest to the Assignee at the rate set forth in section 2.8 of the
Credit Agreement, with the Assignor and Assignee effecting any agreed upon
sharing of interest through payments by the Assignee to the Assignor
7. Facility Fee: As set forth in section 4.1 of the Credit Agreement
(unless otherwise agreed to by the Assignor and the
Assignee)./7/
8. Notices:
--------------------------------------------------------------------------------
ASSIGNOR: ASSIGNEE:
Attention: Attention:
------------------ ------------------
Telephone: Telephone:
Facsimile: Facsimile:
--------------------------------------------------------------------------------
9. Payment Instructions:
--------------------------------------------------------------------------------
ASSIGNOR: ASSIGNEE:
ABA No.: ABA No.:
Account No.: Account No.:
Ref.: Calgon Carbon Corporation Ref.: Calgon Carbon Corporation
Attention: Attention:
------------------ ------------------
Telephone: Telephone:
Facsimile: Facsimile:
--------------------------------------------------------------------------------
----------
/7/ The Borrower and the Administrative Agent shall direct the entire
amount of the Facility Fee to the Assignee at the rate set forth in
section 3.1 of the Credit Agreement, with the Assignor and the
Assignee effecting any agreed upon sharing of Facility Fee through
payment by the Assignee to the Assignor.
EXHIBIT F
----------
FORM OF
SECTION 6.4(B)(II) CERTIFICATE
----------
SECTION 6.4(B)(ii) CERTIFICATE
Reference is hereby made to the Credit Agreement, dated as of March
21, 2003, among Calgon Carbon Corporation, the financial institutions party
thereto from time to time, and National City Bank of Pennsylvania, as
Administrative Agent (the "Credit Agreement"). Pursuant to the provisions
of section 6.4(b)(ii) of the Credit Agreement, the undersigned hereby
certifies that it is not a "bank" as such term is used in section
881(c)(3)(A) of the Internal Revenue Code of 1986, as amended.
[NAME OF BANK]
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
Dated:
----------
EXECUTION COPY
CREDIT AGREEMENT
dated as of
March 21, 2003
Among
CALGON CARBON CORPORATION
as Borrower,
THE LENDING INSTITUTIONS NAMED THEREIN
as Lenders,
NATIONAL CITY BANK OF PENNSYLVANIA
as a Lender, the Swing Line Lender and
as Administrative Agent,
and
PNC BANK, NATIONAL ASSOCIATION
as a Lender and as Syndication Agent
TABLE OF CONTENTS
Page
----
SECTION 1. DEFINITIONS AND TERMS..........................................................1
1.1. Certain Defined Terms..........................................................1
1.2. Computation of Time Periods...................................................21
1.3. Accounting Terms..............................................................21
1.4. Terms Generally...............................................................21
1.5. Currency Equivalents..........................................................21
SECTION 2. AMOUNT AND TERMS OF LOANS.....................................................22
2.1. Commitments for Loans.........................................................22
2.2. Minimum Borrowing Amounts, etc.; Pro Rata Borrowings..........................23
2.3. Procedures for Borrowing......................................................24
2.4. Disbursement of Funds.........................................................25
2.5. Refunding of, or Participation in, Swing Line Revolving Loans.................26
2.6. Notes and Loan Accounts.......................................................27
2.7. Voluntary Conversions of Dollar Denominated Loans; Redenomination of Loans....28
2.8. Interest......................................................................30
2.9. Selection and Continuation of Interest Periods................................32
2.10. Increased Costs, Illegality, etc..............................................33
2.11. Breakage Compensation.........................................................35
2.12. Change of Lending Office; Replacement of Lenders..............................35
SECTION 3. LETTERS OF CREDIT.............................................................36
3.1. Letters of Credit.............................................................36
3.2. Letter of Credit Requests; Notices of Issuance................................37
3.3. Agreement to Repay Letter of Credit Drawings..................................37
3.4. Letter of Credit Participations...............................................38
3.5. Increased Costs...............................................................40
3.6. Guaranty of Subsidiary Letter of Credit Obligations...........................40
SECTION 4. FEES..........................................................................42
4.1. Facility Fee..................................................................42
4.2. Letter of Credit Fees.........................................................43
4.3. Facing Fees...................................................................43
4.4. Letter of Credit Administrative Fees..........................................43
4.5. Other Fees....................................................................43
4.6. Computations of Fees..........................................................43
SECTION 5. REDUCTIONS AND TERMINATION OF COMMITMENTS.....................................43
5.1. Voluntary Termination/Reduction of Commitments................................43
5.2. Mandatory Termination/Adjustments of Commitments, etc.........................44
SECTION 6. PAYMENTS......................................................................44
6.1. Voluntary Prepayments.........................................................44
6.2. Mandatory Prepayments.........................................................45
6.3. Method and Place of Payment...................................................47
6.4. Net Payments..................................................................48
6.5. Late Charges..................................................................49
SECTION 7. CONDITIONS PRECEDENT..........................................................49
7.1. Conditions Precedent at Closing Date..........................................49
7.2. Conditions Precedent to All Loans.............................................51
SECTION 8. REPRESENTATIONS AND WARRANTIES................................................52
8.1. Corporate Status, etc.........................................................52
8.2. Subsidiaries..................................................................52
8.3. Corporate Power and Authority, etc............................................52
8.4. No Violation..................................................................52
8.5. Governmental Approvals........................................................52
8.6. Litigation....................................................................53
8.7. Use of Proceeds; Margin Regulations...........................................53
8.8. Financial Statements, etc.....................................................53
8.9. No Material Adverse Change....................................................53
8.10. Tax Returns and Payments......................................................54
8.11. Title to Properties, etc......................................................54
8.12. Lawful Operations, etc........................................................54
8.13. Environmental Matters.........................................................54
8.14. Compliance with ERISA.........................................................55
8.15. Intellectual Property, etc....................................................55
8.16. Investment Company Act, etc...................................................55
8.17. Burdensome Contracts; Labor Relations.........................................55
8.18. Existing Indebtedness.........................................................56
8.19. True and Complete Disclosure..................................................56
8.20. Insurance.....................................................................56
SECTION 9. AFFIRMATIVE COVENANTS.........................................................56
9.1. Reporting Requirements........................................................56
9.2. Books, Records and Inspections................................................59
9.3. Insurance.....................................................................59
9.4. Payment of Taxes and Claims...................................................59
9.5. Corporate Franchises..........................................................60
9.6. Good Repair...................................................................60
9.7. Compliance with Statutes, etc.................................................60
9.8. Compliance with Environmental Laws............................................60
9.9. Fiscal Years, Fiscal Quarters.................................................61
9.10. Hedge Agreements, etc.........................................................61
9.11. Most Favored Covenant Status..................................................61
9.12. Senior Debt...................................................................62
SECTION 10. NEGATIVE COVENANTS............................................................62
10.1. Changes in Business...........................................................62
10.2. Consolidation, Merger, Acquisitions, Asset Sales, etc.........................62
10.3. Liens.........................................................................64
10.4. Indebtedness..................................................................64
10.5. Advances, Investments, Loans and Guaranty Obligations.........................65
10.6. Dividends, etc................................................................67
10.7. Asset Coverage Percentage.....................................................67
10.8. Ratio of Consolidated Total Debt to Consolidated EBITDA.......................67
10.9. Interest Coverage Ratio.......................................................67
10.10. Minimum Consolidated Net Worth................................................67
10.11. Prepayments and Refinancings of Other Debt, etc...............................67
10.12. Limitation on Certain Restrictive Agreements..................................68
10.13. Transactions with Affiliates..................................................68
10.14. Plan Terminations, Minimum Funding, etc.......................................68
SECTION 11. EVENTS OF DEFAULT.............................................................69
11.1. Events of Default.............................................................69
11.2. Acceleration, etc.............................................................70
11.3. Application of Liquidation Proceeds...........................................70
SECTION 12. THE ADMINISTRATIVE AGENT......................................................71
12.1. Appointment...................................................................71
12.2. Delegation of Duties..........................................................71
12.3. Exculpatory Provisions........................................................71
12.4. Reliance by Administrative Agent..............................................72
12.5. Notice of Default.............................................................72
12.6. Non-Reliance..................................................................72
12.7. Indemnification...............................................................73
12.8. The Administrative Agent in Individual Capacity...............................73
12.9. Successor Administrative Agent................................................73
12.10. Other Agents..................................................................74
SECTION 13. MISCELLANEOUS.................................................................74
13.1. Payment of Expenses etc.......................................................74
13.2. Right of Setoff...............................................................75
13.3. Notices.......................................................................75
13.4. Benefit of Agreement..........................................................76
13.5. No Waiver: Remedies Cumulative................................................78
13.6. Payments Pro Rata.............................................................79
13.7. Calculations: Computations....................................................79
13.8. Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial........79
13.9. Counterparts..................................................................80
13.10. Effectiveness; Integration....................................................80
13.11. Headings Descriptive..........................................................80
13.12. Amendment or Waiver...........................................................80
13.13. Survival......................................................................81
13.14. Domicile of Loans.............................................................81
13.15. Confidentiality...............................................................81
13.16. Lender Register...............................................................82
13.17. General Limitation of Liability...............................................82
13.18. No Duty.......................................................................82
13.19. Lenders and Agents Not Fiduciary to Borrower, etc.............................83
13.20. Survival of Representations and Warranties....................................83
13.21. Independence of Covenants.....................................................83
ANNEX I - INFORMATION AS TO LENDERS
ANNEX II - INFORMATION AS TO SUBSIDIARIES
ANNEX III - DESCRIPTION OF EXISTING INDEBTEDNESS
ANNEX IV - DESCRIPTION OF EXISTING LIENS
ANNEX V - DESCRIPTION OF EXISTING ADVANCES, LOANS,
INVESTMENTS AND GUARANTEES
ANNEX VI - DESCRIPTION OF EXISTING LETTERS OF CREDIT
ANNEX VII - DESCRIPTION OF MATERIAL RECOVERY EVENTS
ANNEX VIII DESCRIPTION OF ALTERNATIVE CURRENCIES
ANNEX IX DESCRIPTION OF CONTINGENT LIABILITIES WITH RESPECT TO
POST-RETIREMENT WELFARE BENEFIT PLANS
ANNEX X DESCRIPTION OF DOCUMENTS REQUIRED TO BE SCHEDULED PURSUANT TO
SECTION 9.11
EXHIBIT A-1 - FORM OF GENERAL REVOLVING NOTE
EXHIBIT A-2 - FORM OF SWING LINE REVOLVING NOTE
EXHIBIT B-1 - FORM OF NOTICE OF BORROWING
EXHIBIT B-2 - FORM OF NOTICE OF CONVERSION
EXHIBIT B-3 FORM OF NOTICE OF REDENOMINATION
EXHIBIT B-4 FORM OF LETTER OF CREDIT REQUEST
EXHIBIT C - FORM OF CORPORATE CERTIFICATE
EXHIBIT D-1 - FORM OF OPINION OF COUNSEL TO THE BORROWER
EXHIBIT D-2 FORM OF SOLVENCY CERTIFICATE
EXHIBIT E - FORM OF ASSIGNMENT AGREEMENT
EXHIBIT F - FORM OF SECTION 6.4(b)(ii) CERTIFICATE
