EXHIBIT 4
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AMENDED AND RESTATED CREDIT AGREEMENT
by and among
XXXXX INDUSTRIES, INC.
as Borrower,
NATIONSBANK, NATIONAL ASSOCIATION (SOUTH),
as Agent and as Lender
and
THE LENDERS PARTY HERETO FROM TIME TO TIME
May 15, 1997
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TABLE OF CONTENTS
Page
ARTICLE I
Definitions and Terms
1.1. Amendment and Restatement......................................... 3
1.2. Definitions....................................................... 3
1.3. Rules of Interpretation........................................... 22
ARTICLE II
The Revolving Credit Facility
2.1. Revolving Loans................................................... 25
2.2. Payment of Interest............................................... 27
2.3. Payment of Principal.............................................. 27
2.4. Non-Conforming Payments........................................... 27
2.5. Notes............................................................. 28
2.6. Pro Rata Payments................................................. 28
2.7. Reductions........................................................ 28
2.8. Conversions and Elections of Subsequent Interest Periods.......... 29
2.9. Increase and Decrease in Amounts.................................. 29
2.10. Facility Fees..................................................... 30
2.11. Deficiency Advances............................................... 30
2.12. Use of Proceeds................................................... 30
2.13. Swing Line........................................................ 30
ARTICLE III
Letters of Credit
3.1. Letters of Credit................................................. 33
3.2. Reimbursement..................................................... 33
3.3. Letter of Credit Facility Fees.................................... 36
3.4. Administrative Fees............................................... 37
ARTICLE IV
Change in Circumstances
4.1. Increased Cost and Reduced Return................................. 38
4.2. Limitation on Types of Loans...................................... 39
4.3. Illegality........................................................ 39
4.4. Treatment of Affected Loans....................................... 40
4.5. Compensation...................................................... 40
4.6. Taxes............................................................. 41
ARTICLE V
Security
5.1. Stock Pledge...................................................... 43
5.2. Guaranty.......................................................... 43
5.3. Further Assurances................................................ 43
ARTICLE VI
Conditions to Making Loans and Issuing Letters of Credit
6.1. Conditions of Initial Advance.................................... 44
6.2. Conditions of Revolving Loans and Letters of Credit............... 46
ARTICLE VII
Representations and Warranties
7.1. Organization and Authority........................................ 48
7.2. Loan Documents.................................................... 48
7.3. Solvency.......................................................... 49
7.4. Subsidiaries and Stockholders..................................... 49
7.5. Ownership Interests............................................... 49
7.6. Financial Condition............................................... 49
7.7. Title to Properties............................................... 50
7.8. Taxes............................................................. 50
7.9. Other Agreements.................................................. 50
7.10. Litigation........................................................ 50
7.11. Margin Stock...................................................... 50
7.12. Investment Company................................................ 51
7.13. Patents, Etc...................................................... 51
7.14. No Untrue Statement............................................... 51
7.15. No Consents, Etc.................................................. 51
7.16. Employee Benefit Plans............................................ 52
7.17. No Default........................................................ 53
7.18. Hazardous Materials............................................... 53
7.19. Employment Matters................................................ 53
7.20. RICO.............................................................. 53
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ARTICLE VIII
Affirmative Covenants
8.1. Financial Reports, Etc............................................ 54
8.2. Maintain Properties............................................... 55
8.3. Existence, Qualification, Etc..................................... 55
8.4. Regulations and Taxes............................................. 55
8.5. Insurance......................................................... 55
8.6. True Books........................................................ 56
8.7. Right of Inspection............................................... 56
8.8. Observe all Laws.................................................. 56
8.9. Governmental Licenses............................................. 56
8.10. Covenants Extending to Other Persons.............................. 56
8.11. Officer's Knowledge of Default.................................... 56
8.12. Suits or Other Proceedings........................................ 56
8.13. Notice of Discharge of Hazardous Material or
Environmental Complaint.......................................... 57
8.14. Environmental Compliance.......................................... 57
8.15. Indemnification................................................... 57
8.16. Further Assurances................................................ 57
8.17. Employee Benefit Plans............................................ 57
8.18. Continued Operations.............................................. 58
8.19. New Subsidiaries.................................................. 58
8.20. Delivery of Share Charges......................................... 59
ARTICLE IX
Negative Covenants
9.1. Financial Covenants............................................... 60
9.2. Acquisitions...................................................... 61
9.3. Capital Expenditures.............................................. 61
9.4. Liens............................................................. 61
9.5. Indebtedness...................................................... 62
9.6. Transfer of Assets................................................ 62
9.7. Investments....................................................... 63
9.8. Merger or Consolidation........................................... 63
9.9. Restricted Payments............................................... 63
9.10. Transactions with Affiliates...................................... 64
9.11. Compliance with ERISA............................................. 64
9.12. Fiscal Year....................................................... 65
9.13. Dissolution, etc.................................................. 65
9.14. Change in Control................................................. 65
9.15. Rate Hedging Obligations.......................................... 65
9.16. Negative Pledge Clauses........................................... 65
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9.17. Restrictions on Ability of Subsidiaries to Pay Dividends......... 65
ARTICLE X
Events of Default and Acceleration
10.1. Events of Default................................................ 66
10.2. Agent to Act..................................................... 69
10.3. Cumulative Rights................................................ 69
10.4. No Waiver........................................................ 69
10.5. Allocation of Proceeds........................................... 69
ARTICLE XI
The Agent
11.1. Appointment, Powers, and Immunities.............................. 71
11.2. Reliance by Agent................................................ 71
11.3. Defaults......................................................... 72
11.4. Rights as Lender................................................. 72
11.5. Indemnification.................................................. 72
11.6. Non-Reliance on Agent and Other Lenders.......................... 73
11.7. Resignation of Agent............................................. 73
11.8. Sharing of Payments, etc......................................... 73
11.9. Fees............................................................. 74
11.10. Security Trustee................................................. 74
ARTICLE XII
Miscellaneous
12.1. Assignments and Participations................................... 75
12.2. Notices.......................................................... 76
12.3. Right of Set-off; Adjustments.................................... 77
12.4. Survival......................................................... 78
12.5. Expenses......................................................... 78
12.6. Amendments and Waivers........................................... 78
12.7. Counterparts..................................................... 79
12.8. Termination...................................................... 79
12.9. Indemnification.................................................. 79
12.10. Severability..................................................... 80
12.11. Entire Agreement................................................. 80
12.12. Agreement Controls............................................... 80
12.13. Usury Savings Clause............................................. 80
12.15. Governing Law; Waiver of Jury Trial.............................. 81
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EXHIBIT A Applicable Revolving Credit Commitment Percentages........ A-1
EXHIBIT B Form of Assignment and Acceptance......................... B-1
EXHIBIT C Notice of Appointment (or Revocation) of Authorized
Representative........................................... X-0
XXXXXXX X-0 Form of Borrowing Notice.................................. X-0
XXXXXXX X-0 Form of Borrowing Notice--Swing Line Loans................ D-3
EXHIBIT E Form of Interest Rate Selection Notice.................... E-1
EXHIBIT F-1 Form of Revolving Note.................................... F-1-1
EXHIBIT F-2 Form of Swing Line Note................................... F-2-1
EXHIBIT G Form of Opinion of Borrower's Counsel..................... G-1
EXHIBIT H Compliance Certificate.................................... H-1
EXHIBIT I Form of Facility Guaranty................................. I-1
EXHIBIT J Form of LC Account Agreement.............................. J-1
EXHIBIT L Receipt and Certificate of Registrar...................... L-1
Schedule 1.1 Existing Letters of Credit................................ S-1
Schedule 7.4 Subsidiaries and Investments in Other Persons............. S-2
Schedule 7.6 Indebtedness.............................................. S-3
Schedule 7.7 Liens..................................................... S-4
Schedule 7.10 Litigation................................................ S-5
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THIRD AMENDED AND RESTATED CREDIT AGREEMENT
THIS THIRD AMENDED AND RESTATED CREDIT AGREEMENT, dated as of May 15, 1997
(the "Agreement"), is made by and among XXXXX INDUSTRIES, INC., a Delaware
corporation having its principal place of business in Bogart, Georgia (the
"Borrower"), NATIONSBANK, NATIONAL ASSOCIATION (SOUTH), a national banking
association organized and existing under the laws of the United States, in its
capacity as a Lender ("NationsBank"), and each other financial institution
executing and delivering a signature page hereto and each other financial
institution which may hereafter execute and deliver an instrument of assignment
with respect to this Agreement pursuant to Section 11.1 (hereinafter such
financial institutions may be referred to individually as a "Lender" or
collectively as the "Lenders"), and NATIONSBANK, NATIONAL ASSOCIATION (SOUTH), a
national banking association organized and existing under the laws of the United
States, in its capacity as agent for the Lenders (in such capacity, and together
with any successor agent appointed in accordance with the terms of Section 11.7,
the "Agent");
W I T N E S S E T H:
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WHEREAS, the Borrower, the Agent (as successor in interest to Bank South,
N.A.), and the lenders signatory thereto have heretofore entered into a Credit
Agreement dated September 30, 1992 (as modified the "Prior 1992 Agreement")
pursuant to which the Agent agreed to make a revolving credit and term loan and
letter of credit facility of up to $31,000,000 to the Borrower, which facility
was guaranteed by certain subsidiaries (the "Guarantors") of the Borrower by
Guaranty Agreements (the "Guarantys"), and the Borrower and certain Guarantors
secured their obligations pursuant to Stock Pledge Agreements dated September
30, 1992 (the "Stock Pledge Agreements") by which the Borrower and the
Guarantors pledged and granted to the Agent a security interest in all the
capital stock of the domestic Subsidiaries and the Material Foreign Subsidiaries
described therein; and
WHEREAS, the Borrower, the Agent (as successor in interest to Bank South,
N.A.), and the lenders signatory thereto have heretofore amended and restated
the Prior 1992 Agreement in its entirety pursuant to the terms of an Amended and
Restated Credit Agreement dated September 30, 1994 (the "Prior 1994 Agreement");
and
WHEREAS, the Borrower, the Agent, and the Lenders signatory thereto have
heretofore amended and restated the Prior 1994 Agreement in its entirety
pursuant to the terms of a Second Amended and Restated Credit Agreement dated
May 8, 1996 (the "Prior 1996 Agreement" and collectively with the Prior 1992
Agreement and the Prior 1994 Agreement, the "Prior Agreements"); and
WHEREAS, the Borrower has requested that the Lenders amend and restate the
Prior 1996 Agreement in its entirety to provide a revolving credit facility of
up to $200,000,000, the proceeds of which are to be used for working capital,
capital expenditures, acquisitions, and general corporate
purposes and which shall include a letter of credit facility of up to
$10,000,000 for the issuance of standby letters of credit and a swing line
facility of up to $10,000,000; and
WHEREAS, the Lenders are willing to make such revolving credit and letter
of credit facilities available to the Borrower upon the terms and conditions set
forth herein;
NOW, THEREFORE, the Borrower, the Lenders and the Agent hereby agree as
follows:
2
ARTICLE I
Definitions and Terms
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1.1 Amendment and Restatement. The Borrower, the Agent, and the Lender
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hereby agree that upon the effectiveness of this Agreement, the terms and
provisions of the Prior Agreements shall be and hereby are amended and restated
in their entirety by the terms and conditions of this Agreement and the terms
and provisions of the Prior Agreements, except as otherwise provided herein,
shall be superseded by this Agreement.
This Agreement is given as a substitution of, and not as a payment of, the
obligations of the Borrower under the Prior Agreements and is not intended to
constitute a novation of the Prior Agreements. Except as otherwise selected by
the Borrower by delivery of a Borrowing Notice prior to the Closing Date in
accordance with the terms hereof, upon the effectiveness of this Agreement all
amounts outstanding and owing by the Borrower under the Prior Agreements as of
the Closing Date, as determined by the Agent, shall constitute Advances
hereunder accruing interest with respect to "Prime Rate Advances" as defined in
the Prior 1996 Agreement, at the Base Rate hereunder. All of the indebtedness,
liabilities and obligations owing by the Borrower under the Prior Agreements
shall continue to be secured by the "Pledged Stock" as defined in the Stock
Pledge Agreements executed in connection with the Prior Agreements and the
Borrower acknowledges and agrees that the "Pledged Stock" as defined in such
Stock Pledge Agreements executed in connection with the Prior Agreements remains
subject to a security interest in favor of the Agent for the ratable benefit of
the Lenders and to secure the liabilities of the Borrower re-evidenced by this
Agreement and the other Loan Documents.
1.2 Definitions. For the purposes of this Agreement, in addition to the
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definitions set forth above, the following terms shall have the respective
meanings set forth below:
"Acquisition" means the acquisition of (i) a controlling equity
interest in another Person (including the purchase of an option, warrant or
convertible or similar type security to acquire such a controlling interest
at the time it becomes exercisable by the holder thereof), whether by
purchase of such equity interest or upon exercise of an option or warrant
for, or conversion of securities into, such equity interest, or (ii) assets
of another Person which constitute all or substantially all of the assets
of such Person or of a line or lines of business conducted by such Person.
"Advance" means a borrowing under the Revolving Credit Facility
consisting of a Base Rate Loan or a Eurodollar Rate Loan.
"Affiliate" means any Person (i) which directly or indirectly through
one or more intermediaries controls, or is controlled by, or is under
common control with the Borrower; or (ii) which beneficially owns or holds
5% or more of any class of the outstanding voting stock (or in
3
the case of a Person which is not a corporation, 5% or more of the equity
interest) of the Borrower; or 5% or more of any class of the outstanding
voting stock (or in the case of a Person which is not a corporation, 5% or
more of the equity interest) of which is beneficially owned or held by the
Borrower. The term "control" means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and
policies of a Person, whether through ownership of voting stock, by
contract or otherwise.
"Applicable Commitment Percentage" means, with respect to each Lender
at any time, a fraction, the numerator of which shall be such Lender's
Revolving Credit Commitment and the denominator of which shall be the Total
Revolving Credit Commitment, which Applicable Commitment Percentage for
each Lender as of the Closing Date is as set forth in Exhibit A; provided
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that the Applicable Commitment Percentage of each Lender shall be increased
or decreased to reflect any assignments to or by such Lender effected in
accordance with Section 12.1.
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"Applicable Lending Office" means, for each Lender and for each Type
of Loan, the "Lending Office" of such Lender (or of an affiliate of such
Lender) designated for such Type of Loan on the signature pages hereof or
such other office of such Lender (or an affiliate of such Lender) as such
Lender may from time to time specify to the Agent and the Borrower by
written notice in accordance with the terms hereof as the office by which
its Loans of such Type are to be made and maintained.
"Applicable Margin" means for each Eurodollar Rate Loan and each Base
Rate Loan, that percent per annum set forth below, which shall be based
upon the Consolidated Leverage Ratio for the Four-Quarter Period most
recently ended as specified below:
Applicable
Consolidated Applicable Margin for Margin for Base Applicable
Tier Leverage Ratio Eurodollar Rate Loans Rate Loans Unused Fee
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VI Greater than 3.00 to 1.00 1.125% 0.250% 0.300%
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V Less than or equal to 3.00 to 1.00
and greater than 2.50 to 1.00 0.875% 0.250% 0.250%
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IV Less than or equal to 2.50 to 1.00
and greater than 2.00 to 1.00 0.750% 0.00% 0.250%
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III Less than or equal to 2.00 to 1.00
and greater than 1.50 to 1.00 0.625% 0.00% 0.200%
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II Less than or equal to 1.50 to 1.00
and greater than 1.00 to 1.00 0.500% 0.00% 0.175%
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I Less than or equal to 1.00 to 1.00 0.400% 0.00% 0.150%
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The Applicable Margin and Applicable Unused Fee shall be established at the
end of each fiscal quarter of the Borrower (each, a "Determination Date").
Any change in the Applicable Margin and Applicable Unused Fee following
each Determination Date shall be determined based upon the computations set
forth in the certificate furnished to the Agent pursuant to
4
Section 8.1(a)(ii) and Section 8.1(b)(ii), subject to review and approval
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of such computations by the Agent, and shall be effective commencing on the
date three Business Days following the date such certificate is received
(or, if earlier, the date such certificate was required to be delivered)
until the date three Business Days following the date on which a new
certificate is delivered or is required to be delivered, whichever shall
first occur; provided however, if the Borrower shall fail to deliver any
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such certificate within the time period required by Section 8.1, then the
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Applicable Margin and Applicable Unused Fee shall be Tier VI until the
appropriate certificate is so delivered. From the Closing Date to the first
Determination Date, the Applicable Margin for Eurodollar Rate Loans shall
be 0.625% and Base Rate Loans shall be .0% and the Applicable Unused Fee
shall be 0.200%.
"Applicable Unused Fee" means that percent per annum set forth in the
table in the definition of Applicable Margin, which shall be based upon the
Consolidated Leverage Ratio for the Four-Quarter Period most recently ended
and shall be effective on the date set forth in the definition of
Applicable Margin. The Applicable Unused Fee shall be established as set
forth in the definition of Applicable Margin.
"Applications and Agreements for Letters of Credit" means,
collectively, the Applications and Agreements for Letters of Credit, or
similar documentation, executed by the Borrower from time to time and
delivered to the Issuing Bank to support the issuance of Letters of Credit.
"Assignment and Acceptance" shall mean an Assignment and Acceptance in
the form of Exhibit B (with blanks appropriately filled in) delivered to
the Agent in connection with an assignment of a Lender's interest under
this Agreement pursuant to Section 12.1.
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"Authorized Representative" means any of the President, the Executive
Vice President or the Chief Financial Officer of the Borrower or, with
respect to financial matters, the Chief Financial Officer or the Corporate
Controller of the Borrower, or any other Person expressly designated by the
Board of Directors of the Borrower (or the appropriate committee thereof)
as an Authorized Representative of the Borrower, as set forth from time to
time in a certificate in the form of Exhibit C.
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"Base Rate" means, for any day, the rate per annum equal to the higher
of (a) the Federal Funds Rate for such day plus one-half of one percent
(0.5%) and (b) the Prime Rate for such day plus the Applicable Margin. Any
change in the Base Rate due to a change in the Prime Rate or the Federal
Funds Rate shall be effective on the effective date of such change in the
Prime Rate or Federal Funds Rate.
"Base Rate Loan" means a Loan for which the rate of interest is
determined by reference to the Base Rate.
"Base Rate Refunding Loan" means a Base Rate Loan made either to (i)
satisfy Reimbursement Obligations arising from a drawing under a Letter of
Credit or (ii) pay NationsBank in respect of Swing Line Outstandings.
5
"Board" means the Board of Governors of the Federal Reserve System (or
any successor body).
"Borrower's Account" means a demand deposit account number
[_____________________] or any successor account with the Agent, which may
be maintained at one or more offices of the Agent or an agent of the Agent.
"Borrowing Notice" means the telephonic request of an Authorized
Representative to obtain an Advance of any Type hereunder as the obtaining
of such Advance shall otherwise be permitted herein. Any Borrowing Notice
shall be confirmed in writing transmitted by telefacsimile on the same day
of such request by an Authorized Representative, in the forms of Exhibits
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D-1 and D-2, respectively.
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"Business Day" means, (i) with respect to a Base Rate Loan, any day
which is not a Saturday, Sunday or a day on which banks in the States of
New York and North Carolina are authorized or obligated by law, executive
order or governmental decree to be closed, and (ii) with respect to any
Eurodollar Rate Loan, any day which is a Business Day, as described above,
and on which the relevant international financial markets are open for the
transaction of business contemplated by this Agreement in London, England,
New York, New York and Charlotte, North Carolina.
"Capital Expenditures" means, with respect to the Borrower and its
Subsidiaries, for any period the sum of (without duplication) (i) all
---
expenditures (whether paid in cash or accrued as liabilities) by the
Borrower or any Subsidiary during such period for items that would be
classified as "property, plant or equipment" or comparable items on the
consolidated balance sheet of the Borrower and its Subsidiaries, including
without limitation all transactional costs incurred in connection with such
expenditures provided the same have been capitalized, excluding, however,
the amount of any Capital Expenditures paid for with proceeds of casualty
insurance as evidenced in writing and submitted to the Agent together with
any compliance certificate delivered pursuant to Section 8.1(a) or (b), and
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(ii) with respect to any Capital Lease entered into by the Borrower or its
Subsidiaries during such period, the present value of the lease payments
due under such Capital Lease over the term of such Capital Lease applying a
discount rate equal to the interest rate provided in such lease (or in the
absence of a stated interest rate, that rate used in the preparation of the
financial statements described in Section 8.1(a)), all the foregoing in
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accordance with GAAP applied on a Consistent Basis.
"Capital Leases" means all leases which have been or should be
capitalized in accordance with GAAP as in effect from time to time
including Statement No. 13 of the Financial Accounting Standards Board and
any successor thereof.
"Change of Control" means, at any time:
6
(i) any "person" or "group" (each as used in Sections 13(d)(3)
and 14(d)(2) of the Exchange Act) either (A) becomes the "beneficial
owner" (as defined in Rule 13d-3 of the Exchange Act ), directly or
indirectly, of Voting Stock of the Borrower (or securities convertible
into or exchangeable for such Voting Stock) representing twenty-five
percent (25%) or more of the combined voting power of all Voting Stock
of the Borrower (on a fully diluted basis) or (B) otherwise has the
ability, directly or indirectly, to elect a majority of the board of
directors of the Borrower;
(ii) during any period of up to 24 consecutive months,
commencing on the Closing Date, individuals who at the beginning of
such 24-month period were directors of the Borrower shall cease for
any reason (other than the death, disability or retirement of an
officer of the Borrower that is serving as a director at such time so
long as another officer of the Borrower replaces such Person as a
director) to constitute a majority of the board of directors of the
Borrower;
(iii) any Person or two or more Persons acting in concert shall
have acquired by contract or otherwise, or shall have entered into a
contract or arrangement that, upon consummation thereof, will result
in its or their acquisition of the power to exercise, directly or
indirectly, a voting control over twenty-five percent (25%) or more of
the Voting Stock of Borrower; or
(iv) a security of the Borrower is not traded on the New York
Stock Exchange.
"Closing Date" means the date as of which this Agreement is executed
by the Borrower, the Lenders and the Agent and on which the conditions set
forth in Section 6.1 have been satisfied.
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"Code" means the Internal Revenue Code of 1986, as amended, and any
regulations promulgated thereunder.
"Collateral" has the meaning given to such term in the Stock Pledge
Agreement.
"Commercial Letter of Credit" means a documentary letter of credit
issued by the Issuing Bank for the account of the Borrower which letter
of credit is secured by documents.
"Consistent Basis" in reference to the application of GAAP means the
accounting principles observed in the period referred to are comparable in
all material respects to those applied in the preparation of the audited
financial statements of the Borrower referred to in Section 7.6(a).
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"Consolidated EBIT" means, with respect to the Borrower and its
Subsidiaries for any Four-Quarter Period ending on the date of
computation thereof the sum of, without duplication, (i) Consolidated Net
---
Income, (ii) Consolidated Interest Expense, and (iii) taxes
7
on income, all determined on a consolidated basis in accordance with GAAP
applied on a Consistent Basis; provided, however, that with respect to any
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Acquisition which is treated as a "purchase", Consolidated EBIT for the
four fiscal quarters ending during the quarter in which such Acquisition
occurs shall include the results of operations of the Person or assets so
acquired (which results shall be determined on an historical proforma basis
in form and substance satisfactory to the Agent).
"Consolidated EBITDA" means, with respect to the Borrower and its
Subsidiaries for any Four-Quarter Period ending on the date of computation
thereof, the sum of, without duplication, (i) Consolidated Net Income, (ii)
---
Consolidated Interest Expense, (iii) taxes on income, (iv) amortization,
and (v) depreciation, all determined on a consolidated basis in accordance
with GAAP applied on a Consistent Basis; provided, however, that with
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respect to any Acquisition which is treated as a "purchase", Consolidated
EBITDA for the four fiscal quarters ending during the quarter in which such
Acquisition occurs shall include the results of operations of the Person or
assets so acquired (which results shall be determined on an historical
proforma basis in form and substance satisfactory to the Agent).
"Consolidated Indebtedness" means all Indebtedness for Money Borrowed
of the Borrower and its Subsidiaries, all determined on a consolidated
basis.
"Consolidated Interest Coverage Ratio" means, as of the date of
computation thereof, the ratio of (i) Consolidated EBIT to (ii)
Consolidated Interest Expense (for the Four-Quarter Period ending on (or
most recently ended prior to) such date).
"Consolidated Interest Expense" means, with respect to any period of
computation thereof, the gross interest expense of the Borrower and its
Subsidiaries, including without limitation (i) the current amortized
portion of debt discounts to the extent included in gross interest expense,
(ii) the current amortized portion of all fees (including fees payable in
respect of any Swap Agreement and Letters of Credit) payable in connection
with the incurrence of Indebtedness to the extent included in gross
interest expense and (iii) the portion of any payments made in connection
with Capital Leases allocable to interest expense, all determined on a
consolidated basis in accordance with GAAP applied on a Consistent Basis.
"Consolidated Leverage Ratio" means, as of the date of computation
thereof, the ratio of (i) Consolidated Indebtedness (determined as at such
date) to (ii) Consolidated EBITDA (for the Four-Quarter Period ending on
(or most recently ended prior to) such date).
"Consolidated Net Income" means, for any period of computation
thereof, the gross revenues from operations of the Borrower and its
Subsidiaries (including payments received by the Borrower and its
Subsidiaries of (i) interest income, and (ii) dividends and distributions
made in the ordinary course of their businesses by Persons in which
investment is permitted pursuant to this Agreement and not related to an
extraordinary event), less all operating and non-operating expenses of the
Borrower and its Subsidiaries including taxes on income, all determined on
a consolidated basis in accordance with GAAP applied on a Consistent Basis;
8
but excluding (for all purposes other than compliance with Section 9.1(a)
--------------
hereof) as income: (i) net gains on the sale, conversion or other
disposition of capital assets, (ii) net gains on the acquisition,
retirement, sale or other disposition of capital stock and other securities
of the Borrower or its Subsidiaries, (iii) net gains on the collection of
proceeds of life insurance policies, (iv) any write-up of any asset, and
(v) any other net gain or credit of an extraordinary nature as determined
in accordance with GAAP applied on a Consistent Basis.
"Consolidated Net Worth" means, as of any date on which the amount
thereof is to be determined, the sum of the following in respect of the
Borrower and its Subsidiaries (determined on a consolidated basis and
excluding any upward adjustment after the Closing Date due to revaluation
of assets): (i) the amount of issued and outstanding share capital, plus
(ii) the amount of additional paid-in capital and retained earnings (or, in
the case of a deficit, minus the amount of such deficit), plus (iii) the
amount of any foreign currency translation adjustment (if positive, or, if
negative, minus the amount of such translation adjustment), minus (iv) the
amount of any treasury stock, all as determined in accordance with GAAP
applied on a Consistent Basis.
"Consolidated Total Assets" means, as of any date on which the amount
thereof is to be determined, the net book value of all assets of the
Borrower and its Subsidiaries as determined on a consolidated basis in
accordance with GAAP applied on a Consistent Basis.
"Contingent Obligation" of any Person means all contingent liabilities
required (or which, upon the creation or incurring thereof, would be
required) to be included in the financial statements (including footnotes)
of such Person in accordance with GAAP applied on a Consistent Basis,
including Statement No. 5 of the Financial Accounting Standards Board, all
Rate Hedging Obligations and any obligation of such Person guaranteeing or
in effect guaranteeing any Indebtedness, dividend or other obligation of
any other Person (the "primary obligor") in any manner, whether directly or
indirectly, including obligations of such Person however incurred:
(1) to purchase such Indebtedness or other obligation or any
property or assets constituting security therefor;
(2) to advance or supply funds in any manner (i) for the purchase
or payment of such Indebtedness or other obligation, or (ii) to
maintain a minimum working capital, net worth or other balance sheet
condition or any income statement condition of the primary obligor;
(3) to grant or convey any lien, security interest, pledge,
charge or other encumbrance on any property or assets of such Person
to secure payment of such Indebtedness or other obligation;
(4) to lease property or to purchase securities or other property
or services primarily for the purpose of assuring the owner or holder
of such Indebtedness or
9
obligation of the ability of the primary obligor to make payment of
such Indebtedness or other obligation; or
(5) otherwise to assure the owner of the Indebtedness or such
obligation of the primary obligor against loss in respect thereof.
"Continue", "Continuation", and "Continued" shall refer to the
continuation pursuant to Section 2.8 hereof of a Eurodollar Rate Loan from
-----------
one Interest Period to the next Interest Period.
"Convert", "Conversion", and "Converted" shall refer to a conversion
pursuant to Section 2.8 or Article IV of one Type of Loan into another Type
----------- ----------
of Loan.
"Cost of Acquisition" means, with respect to any Acquisition, as at
the date of such Acquisition, the sum of the following (without
---
duplication): (i) the value of the capital stock, warrants or options to
acquire capital stock of Borrower or any Subsidiary to be transferred in
connection therewith (adjusted to give effect to any limitations on
transfer of such capital stock, warrants or options), (ii) the amount of
any cash and fair market value of other property (excluding property
described in clause (i) and the unpaid principal amount of any debt
instrument) given as consideration, (iii) the amount (determined by using
the face amount or the amount payable at maturity, whichever is greater) of
any Indebtedness incurred (without duplication), assumed or acquired by the
Borrower or any Subsidiary in connection with such Acquisition, (iv) all
additional purchase price amounts in the form of earnouts and other
contingent obligations that should be recorded on the financial statements
of the Borrower and its Subsidiaries in accordance with GAAP, (v) all
amounts paid in respect of covenants not to compete, consulting agreements
that should be recorded on financial statements of the Borrower and its
Subsidiaries in accordance with GAAP, (vi) the aggregate fair market value
of all other consideration given by the Borrower or any Subsidiary in
connection with such Acquisition, and (vii) out of pocket transaction costs
for the services and expenses of attorneys, accountants and other
consultants incurred in effecting such transaction, and other similar
transaction costs so incurred.
"Default" means any event or condition which, with the giving or
receipt of notice or lapse of time or both, would constitute an Event of
Default hereunder.
"Default Rate" means (i) with respect to each Eurodollar Rate Loan,
until the end of the Interest Period applicable thereto, a rate of two
percent (2%) above the Eurodollar Rate applicable to such Loan, and
thereafter at a rate of interest per annum which shall be two percent (2%)
above the Base Rate, (ii) with respect to Base Rate Loans, at a rate of
interest per annum which shall be two percent (2%) above the Base Rate, and
(iii) in any case, the maximum rate permitted by applicable law, if lower.
"Dollars" and the symbol "$" means dollars constituting legal tender
for the payment of public and private debts in the United States of
America.
10
"Eligible Assignee" means (i) a Lender; (ii) an affiliate of a
Lender; and (iii) any other Person approved by the Agent and, unless an
Event of Default has occurred and is continuing at the time any assignment
is effected in accordance with Section 12.1, the Borrower, such approval
------------
not to be unreasonably withheld or delayed by the Borrower or the Agent;
provided, however, that neither the Borrower nor an affiliate of the
-------- -------
Borrower shall qualify as an Eligible Assignee.
"Eligible Securities" means the following obligations and any other
obligations previously approved in writing by the Agent:
(a) Government Securities;
(b) obligations of any corporation organized under the laws of
any state of the United States of America or under the laws of any
other nation, payable in the United States of America, expressed to
mature not later than 92 days following the date of issuance thereof
and rated in an investment grade rating category by S&P and Xxxxx'x;
(c) interest bearing demand or time deposits issued by any Lender
or certificates of deposit maturing within one year from the date of
issuance thereof and issued by a bank or trust company organized under
the laws of the United States or of any state thereof having capital
surplus and undivided profits aggregating at least $400,000,000 and
being rated "A-3" or better by S&P or "A" or better by Xxxxx'x;
(d) Repurchase Agreements;
(e) Municipal Obligations;
(f) Pre-Refunded Municipal Obligations;
(g) shares of mutual funds which invest in obligations described
in paragraphs (a) through (f) above, the shares of which mutual funds
are at all times rated "AAA" by S&P;
(h) tax-exempt or taxable adjustable rate preferred stock issued
by a Person having a rating of its long term unsecured debt of "A" or
better by S&P or "A-3" or better by Xxxxx'x; and
(i) asset-backed remarketed certificates of participation
representing a fractional undivided interest in the assets of a trust,
which certificates are rated at least "A-1" by S&P and "P-1" by
Xxxxx'x.
"Employee Benefit Plan" means any employee benefit plan within the
meaning of Section 3(3) of ERISA which (i) is maintained for employees of
the Borrower or any of its ERISA Affiliates or is assumed by the Borrower
or any of its ERISA Affiliates in connection
11
with any Acquisition or (ii) has at any time been maintained for the
employees of the Borrower or any current or former ERISA Affiliate.
"Environmental Laws" means any federal, state or local statute, law,
ordinance, code, rule, regulation, order, decree, permit or license
regulating, relating to, or imposing liability or standards of conduct
concerning, any environmental matters or conditions, environmental
protection or conservation, including without limitation, the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended;
the Superfund Amendments and Reauthorization Act of 1986, as amended; the
Resource Conservation and Recovery Act, as amended; the Toxic Substances
Control Act, as amended; the Clean Air Act, as amended; the Clean Water
Act, as amended; together with all regulations promulgated thereunder, and
any other "Superfund" or "Superlien" law."
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and any successor statute and all rules and
regulations promulgated thereunder.
"ERISA Affiliate", as applied to the Borrower, means any Person or
trade or business which is a member of a group which is under common
control with the Borrower, who together with the Borrower, is treated as a
single employer within the meaning of Section 414(b) and (c) of the Code.
"Eurodollar Rate Loan" means Loans that bear interest at rates based
upon the Eurodollar Rate.
"Eurodollar Rate" means the interest rate per annum calculated
according to the following formula:
Eurodollar = Interbank Offered Rate + Applicable
--------------------------------
Rate 1 - Reserve Requirement Margin
"Event of Default" means any of the occurrences set forth as such in
Section 10.1.
------------
"Exchange Act" means the Securities Exchange Act of 1934, as amended,
and the regulations promulgated thereunder.
"Existing Letters of Credit" means those Letters of Credit described
in Schedule 1.1 attached hereto.
------------
"Facility Guaranty" means each Amended and Restated Guaranty and
Suretyship Agreement between one or more Guarantors and the Agent for the
benefit of the Lenders, delivered as of the Closing Date and otherwise
pursuant to Section 8.19, as the same may be amended, modified or
------------
supplemented.
12
"Facility Termination Date" means the date on which the Revolving
Credit Termination Date shall have occurred, no Letters of Credit shall
remain outstanding and the Borrower shall have fully, finally and
irrevocably paid and satisfied all Obligations.
"Federal Funds Rate" means, for any day, the rate per annum (rounded
upwards, if necessary, to the nearest 1/100 of 1%) equal to the weighted
average of the rates on overnight Federal funds transactions with members
of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Business
Day next succeeding such day; provided that (a) if such day is not a
--------
Business Day, the Federal Funds Rate for such day shall be such rate on
such transactions on the next preceding Business Day as so published on the
next succeeding Business Day, and (b) if no such rate is so published on
such next succeeding Business Day, the Federal Funds Rate for such day
shall be the average rate charged to the Agent (in its individual capacity)
on such day on such transactions as determined by the Agent.
"Fiscal Year" means the twelve month fiscal period of the Borrower and
its Subsidiaries commencing on November 1 of each calendar year and ending
on October 31 of the following calendar year.
"Foreign Benefit Law" means any applicable statute, law, ordinance,
code, rule, regulation, order or decree of any foreign nation or any
province, state, territory, protectorate or other political subdivision
thereof regulating, relating to, or imposing liability or standards of
conduct concerning, any Employee Benefit Plan.
"Four-Quarter Period" means a period of four full consecutive fiscal
quarters of the Borrower and its Subsidiaries, taken together as one
accounting period.
"GAAP" or "Generally Accepted Accounting Principles" means generally
accepted accounting principles, being those principles of accounting set
forth in pronouncements of the Financial Accounting Standards Board, the
American Institute of Certified Public Accountants or which have other
substantial authoritative support and are applicable in the circumstances
as of the date of a report.
"Government Securities" means direct obligations of, or obligations
the timely payment of principal and interest on which are fully and
unconditionally guaranteed by, the United States of America.
"Governmental Authority" shall mean any Federal, state, municipal,
national or other governmental department, commission, board, bureau,
court, agency or instrumentality or political subdivision thereof or any
entity or officer exercising executive, legislative, judicial, regulatory
or administrative functions of or pertaining to any government or any
court, in each case whether associated with a state of the United States,
the United States, or a foreign entity or government.
13
"Guarantors" means, at any date, the Subsidiaries who are required to
be parties to a Facility Guaranty at such date.
"Hazardous Material" means and includes any pollutant, contaminant, or
hazardous, toxic or dangerous waste, substance or material (including
without limitation petroleum products, asbestos-containing materials and
lead), the generation, handling, storage, transportation, disposal,
treatment, release, discharge or emission of which is subject to any
Environmental Law.
"Indebtedness" means with respect to any Person, without duplication,
all Indebtedness for Money Borrowed, all indebtedness of such Person for
the acquisition of property or arising under Rate Hedging Obligations, all
indebtedness secured by any Lien on the property of such Person whether or
not such indebtedness is assumed, all liability of such Person by way of
endorsements (other than for collection or deposit in the ordinary course
of business), all Contingent Obligations, letters of credit, that portion
of obligations with respect to Capital Leases and other items which in
accordance with GAAP is required to be classified as a liability on a
balance sheet; but excluding all accounts payable in the ordinary course of
business so long as payment therefor is due within one year; provided that
--------
in no event shall the term Indebtedness include surplus and retained
earnings, lease obligations (other than pursuant to Capital Leases),
reserves for deferred income taxes and investment credits, other deferred
credits or reserves.
"Indebtedness for Money Borrowed" means with respect to any Person,
without duplication, all indebtedness in respect of money borrowed,
including without limitation all Capital Leases and the deferred purchase
price of any property or asset, evidenced by a promissory note, bond,
debenture or similar written obligation for the payment of money (including
conditional sales or similar title retention agreements), other than trade
payables incurred in the ordinary course of business.
"Interbank Offered Rate" means, for any Eurodollar Rate Loan for any
Interest Period therefor, the rate per annum (rounded upwards, if
necessary, to the nearest 1/100 of 1%) appearing on Telerate Page 3750 (or
any successor page) as the London interbank offered rate for deposits in
Dollars at approximately 11:00 a.m. (London time) two Business Days prior
to the first day of such Interest Period for a term comparable to such
Interest Period. If for any reason such rate is not available, the term
"Eurodollar Rate" shall mean, for any Eurodollar Rate Loan for any Interest
Period therefor, the rate per annum (rounded upwards, if necessary, to the
nearest 1/100 of 1%) appearing on Reuters Screen LIBO Page as the London
interbank offered rate for deposits in Dollars at approximately 11:00 a.m.
(London time) two Business Days prior to the first day of such Interest
Period for a term comparable to such Interest Period; provided, however, if
-------- -------
more than one rate is specified on Reuters Screen LIBO Page, the applicable
rate shall be the arithmetic mean of all such rates (rounded upwards, if
necessary, to the nearest 1/100 of 1%).
"Interest Period" means, for each Eurodollar Rate Loan, a period
commencing on the date such Eurodollar Rate Loan is made or Converted and
ending, at the Borrower's option,
14
on the date one, two, three or six months thereafter as notified to the
Agent by the Authorized Representative three (3) Business Days prior to the
beginning of such Interest Period; provided, that,
--------
(i) if the Authorized Representative fails to notify the Agent
of the length of an Interest Period three (3) Business Days prior to
the first day of such Interest Period, the Loan for which such
Interest Period was to be determined shall be deemed to be a Base Rate
Loan as of the first day thereof;
(ii) if an Interest Period for a Eurodollar Rate Loan would end
on a day which is not a Business Day, such Interest Period shall be
extended to the next Business Day (unless such extension would cause
the applicable Interest Period to end in the succeeding calendar
month, in which case such Interest Period shall end on the next
preceding Business Day);
(iii) any Interest Period which begins on the last Business
Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of a calendar month;
(iv) no Interest Period shall extend past the Stated
Termination Date; and
(v) there shall not be more than seven (7) Interest Periods in
effect on any day.
"Interest Rate Selection Notice" means the telephonic request of an
Authorized Representative to elect a subsequent Interest Period for any
Eurodollar Rate Loan or the Conversion of any Eurodollar Rate Loan into a
Base Rate Loan or the Conversion of any Base Rate Loan into a Eurodollar
Rate Loan. Any Interest Rate Selection Notice shall be confirmed in
writing transmitted by telecopy on the same day as such request by an
Authorized Officer in the form of Exhibit E.
---------
"Issuing Bank" means initially NationsBank and thereafter any Lender
which is successor to NationsBank as issuer of Letters of Credit under
Article IV.
----------
"LC Account Agreement" means the LC Account Agreement dated as of the
date hereof between the Borrower and the Agent, as amended, modified or
supplemented from time to time.
"Letter of Credit" means a Standby Letter of Credit or a Commercial
Letter of Credit issued by the Issuing Bank for the account of the Borrower
pursuant to Article III hereof, including the Existing Letters of Credit.
-----------
"Letter of Credit Commitment" means, with respect to each Lender, the
obligation of such Lender to acquire Participations in respect of Letters
of Credit and Reimbursement
15
Obligations up to an aggregate amount at any one time outstanding equal to
such Lender's Applicable Commitment Percentage of the Total Letter of
Credit Commitment as the same may be increased or decreased from time to
time pursuant to this Agreement.
"Letter of Credit Facility" means the facility described in Article
-------
III hereof providing for the issuance by the Issuing Bank for the account
---
of the Borrower of Letters of Credit in an aggregate stated amount at any
time outstanding not exceeding the Total Letter of Credit Commitment.
"Letter of Credit Outstandings" means, as of any date of
determination, the aggregate amount remaining undrawn under all Letters of
Credit plus Reimbursement Obligations then outstanding.
"Lien" means any interest in property securing any obligation owed to,
or a claim by, a Person other than the owner of the property, whether such
interest is based on the common law, statute or contract, and including but
not limited to the lien or security interest arising from a mortgage,
encumbrance, pledge, security agreement, conditional sale or trust receipt
or a lease, consignment or bailment for security purposes. For the
purposes of this Agreement, the Borrower and any Subsidiary shall be deemed
to be the owner of any property which it has acquired or holds subject to a
conditional sale agreement, financing lease, or other arrangement pursuant
to which title to the property has been retained by or vested in some other
Person for security purposes.
"Loan" or "Loans" means any borrowing pursuant to an Advance under the
Revolving Credit Facility.
"Loan Documents" means this Agreement, the Notes, the Facility
Guaranties, the LC Account Agreement, the Applications and Agreements for
Letter of Credit, and all other instruments and documents heretofore or
hereafter executed or delivered to or in favor of any Lender or the Agent
in connection with the Loans made and transactions contemplated under this
Agreement, as the same may be amended, supplemented or replaced from the
time to time.
"Loan Parties" means the Borrower and the Guarantors.
"Material Adverse Effect" means a material adverse effect on (i) the
business, properties, operations or condition, financial or otherwise, of
the Borrower or any of its Subsidiaries, taken as a whole, (ii) the ability
of the Loan Parties to pay or perform their respective obligations,
liabilities and indebtedness under the Loan Documents as such payment or
performance becomes due in accordance with the terms thereof, or (iii) the
rights, powers and remedies of the Agent or any Lender under any Loan
Document or the validity, legality or enforceability thereof (including for
purposes of clauses (ii) and (iii) the imposition of burdensome conditions
thereon).
16
"Material Foreign Subsidiary" means any direct or indirect Subsidiary
of the Borrower (but not a Subsidiary of a Material Foreign Subsidiary)
which is incorporated or organized under the laws of a jurisdiction outside
of the United States and which (i) has total assets equal to or greater
than five percent (5%) of Consolidated Total Assets (calculated as of the
most recent fiscal period with respect to which the Agent shall have
received financial statements required to be delivered pursuant to Sections
--------
8.1(a) or (b) or if prior to delivery of any financial statements pursuant
------ ---
to such Sections, then calculated with respect to the Fiscal Year) and
financial statements referenced in Section 7.6) (the "Required Financial
-----------
Information") or (ii) has income equal to or greater than five percent (5%)
of Consolidated Net Income (calculated for the most recent period for which
the Agent has received the Required Financial Information).
"Moody's" means Xxxxx'x Investors Service, Inc.
"Multiemployer Plan" means a "multiemployer plan" as defined in
Section 4001(a)(3) of ERISA to which the Borrower or any ERISA Affiliate is
making, or is accruing an obligation to make, contributions or has made, or
been obligated to make, contributions within the preceding six (6) Fiscal
Years.
"Municipal Obligations" means general obligations issued by, and
supported by the full taxing authority of, any state of the United States
of America or of any municipal corporation or other public body organized
under the laws of any such state which are rated in the highest investment
rating category by both S&P and Moody's.
"NationsBank" means NationsBank, National Association (South).
"NCMI" means NationsBanc Capital Markets, Inc. and its successors.
"Notes" means, collectively, the promissory notes of the Borrower
evidencing (i) Revolving Loans executed and delivered to the Lenders
substantially in the form of Exhibit F-1, and (ii) Swing Line Loans
-----------
executed and delivered to NationsBank substantially in the form of Exhibit
-------
F-2.
---
"Obligations" means the obligations, liabilities and Indebtedness of
the Borrower with respect to (i) the principal and interest on the Loans as
evidenced by the Notes, (ii) the Reimbursement Obligations and otherwise in
respect of the Letters of Credit, (iii) all liabilities of Borrower to any
Lender which arise under a Swap Agreement, and (iii) the payment and
performance of all other obligations, liabilities and Indebtedness of the
Borrower to the Lenders, the Agent or NCMI hereunder, under any one or more
of the other Loan Documents or with respect to the Loans.
"Outstandings" means, collectively, at any date, the Letter of Credit
Outstandings, Swing Line Outstandings, and Revolving Credit Outstandings on
such date.
17
"Participation" means, (i) with respect to any Lender (other than the
Issuing Bank) and a Letter of Credit, the extension of credit represented
by the participation of such Lender hereunder in the liability of the
Issuing Bank in respect of a Letter of Credit issued by the Issuing Bank in
accordance with the terms hereof and (ii) with respect to any Lender (other
than NationsBank) and a Swing Line Loan, the extension of credit
represented by the participation of such Lender hereunder in the liability
of NationsBank in respect of a Swing Line Loan made by NationsBank in
accordance with the terms hereof.
"PBGC" means the Pension Benefit Guaranty Corporation and any
successor thereto.
"Pension Plan" means any employee pension benefit plan within the
meaning of Section 3(2) of ERISA, other than a Multiemployer Plan, which is
subject to the provisions of Title IV of ERISA or Section 412 of the Code
and which (i) is maintained for employees of the Borrower or any of its
ERISA Affiliates or is assumed by the Borrower or any of its ERISA
Affiliates in connection with any Acquisition or (ii) has at any time been
maintained for the employees of the Borrower or any current or former ERISA
Affiliate.
"Permitted Liens" has the meaning ascribed to such term in Section 9.4
-----------
hereof.
"Person" means an individual, partnership, corporation, trust, limited
liability company, unincorporated organization, association, joint venture
or a government or agency or political subdivision thereof.
"Pledged Stock" has the meaning given to such term in the Stock Pledge
Agreement.
"Pre-Refunded Municipal Obligations" means obligations of any state of
the United States of America or of any municipal corporation or other
public body organized under the laws of any such state which are rated,
based on the escrow, in the highest investment rating category by both S&P
and Moody's and which have been irrevocably called for redemption and
advance refunded through the deposit in escrow of Government Securities or
other debt securities which are (i) not callable at the option of the
issuer thereof prior to maturity, (ii) irrevocably pledged solely to the
payment of all principal and interest on such obligations as the same
becomes due and (iii) in a principal amount and bear such rate or rates of
interest as shall be sufficient to pay in full all principal of, interest,
and premium, if any, on such obligations as the same becomes due as
verified by a nationally recognized firm of certified public accountants.
"Prime Rate" means the per annum rate of interest established from
time to time by NationsBank as its prime rate, which rate may not be the
lowest rate of interest charged by NationsBank to its customers.
"Principal Office" means the office of NationsBank, presently located
at, Xxxxxxxxxxxx Xxxxxx, 00xx Xxxxx, XX0 000-00-00, Xxxxxxxxx, Xxxxx
Xxxxxxxx 00000, Attention: Agency Services.
18
"Rate Hedging Obligations" means any and all obligations of the
Borrower or any Subsidiary, whether absolute or contingent and howsoever
and whensoever created, arising, evidenced or acquired (including all
renewals, extensions and modifications thereof and substitutions therefor),
under (i) any and all agreements, devices or arrangements designed to
protect at least one of the parties thereto from the fluctuations of
interest rates, exchange rates or forward rates applicable to such party's
assets, liabilities or exchange transactions, including, but not limited
to, Dollar-denominated or cross-currency interest rate exchange agreements,
forward currency exchange agreements, interest rate cap or collar
protection agreements, forward rate currency or interest rate options,
puts, warrants and those commonly known as interest rate "swap" agreements;
and (ii) any and all cancellations, buybacks, reversals, terminations or
assignments of any of the foregoing.
"Regulation D" means Regulation D of the Board as the same may be
amended or supplemented from time to time.
"Reimbursement Obligation" shall mean at any time, the obligation of
the Borrower with respect to any Letter of Credit to reimburse the Issuing
Bank and the Lenders to the extent of their respective Participations
(including by the receipt by the Issuing Bank of proceeds of Loans pursuant
to Section 3.2) for amounts theretofore paid by the Issuing Bank pursuant
-----------
to a drawing under such Letter of Credit.
"Repurchase Agreement" means a repurchase agreement entered into with
any financial institution whose debt obligations or commercial paper are
rated "A" by either of S&P or Moody's or "A-1" by S&P or "P-1" by Moody's.
"Required Lenders" means, as of any date, Lenders on such date having
Credit Exposures (as defined below) aggregating more than 50% of the
aggregate Credit Exposures of all Lenders on such date. For purposes of
the preceding sentence, the amount of the "Credit Exposure" of each Lender
---------------
shall be equal to the aggregate principal amount of the Loans owing to such
Lender plus the aggregate unutilized amounts of such Lender's Revolving
Credit Commitment (without regard to any Swing Line Outstandings) plus the
amount of such Lender's Applicable Commitment Percentage of Letter of
Credit Outstandings; provided that, (i) if any Lender shall have failed to
pay to the Issuing Bank its Applicable Commitment Percentage of any drawing
under any Letter of Credit resulting in an outstanding Reimbursement
Obligation, such Lender's Credit Exposure attributable to Letters of Credit
and Reimbursement Obligations shall be deemed to be held by the Issuing
Bank for purposes of this definition and (ii) if any Lender shall have
failed to pay to NationsBank its Applicable Commitment Percentage of any
Swing Line Loan, such Lender's Credit Exposure attributable to all Swing
Line Outstandings shall be deemed to be held by NationsBank for purposes of
this definition.
"Reserve Requirement" means, at any time, the maximum rate at which
reserves (including, without limitation, any marginal, special,
supplemental, or emergency reserves) are required to be maintained under
regulations issued from time to time by the Board of Governors of the
Federal Reserve System (or any successor) by member banks of the Federal
19
Reserve System against, in the case of Eurodollar Rate Loans, "Eurocurrency
liabilities" (as such term is used in Regulation D). Without limiting the
effect of the foregoing, the Reserve Requirement shall reflect any other
reserves required to be maintained by such member banks with respect to (i)
any category of liabilities which includes deposits by reference to which
the Eurodollar Rate is to be determined, or (ii) any category of extensions
of credit or other assets which include Eurodollar Rate Loans. The
Eurodollar Rate shall be adjusted automatically on and as of the effective
date of any change in the Reserve Requirement.
"Restricted Payment" means (a) any dividend or other distribution,
direct or indirect, on account of any shares of any class of stock of
Borrower or any of its Subsidiaries (other than those payable or
distributable solely to the Borrower) now or hereafter outstanding, except
a dividend payable solely in shares of a class of stock to the holders of
that class; (b) any redemption, conversion, exchange, retirement or similar
payment, purchase or other acquisition for value, direct or indirect, of
any shares of any class of stock of Borrower or any of its Subsidiaries
(other than those payable or distributable solely to the Borrower) now or
hereafter outstanding; (c) any payment made to retire, or to obtain the
surrender of, any outstanding warrants, options or other rights to acquire
shares of any class of stock of Borrower or any of its Subsidiaries now or
hereafter outstanding; and (d) any issuance and sale of capital stock of
any Subsidiary of the Borrower (or any option, warrant or right to acquire
such stock) other than to the Borrower.
"Revolving Credit Commitment" means, with respect to each Lender, the
obligation of such Lender to make Revolving Loans to the Borrower up to
an aggregate principal amount at any one time outstanding equal to such
Lender's Applicable Commitment Percentage of the Total Revolving Credit
Commitment.
"Revolving Credit Facility" means the facility described in Article II
----------
hereof providing for Loans to the Borrower by the Lenders in the
aggregate principal amount of the Total Revolving Credit Commitment.
"Revolving Credit Outstandings" means, as of any date of
determination, the aggregate principal amount of all Revolving Loans made
pursuant to Section 2.1 then outstanding and all interest accrued thereon.
-----------
"Revolving Credit Termination Date" means (i) the Stated Termination
Date or (ii) such earlier date of termination of Lenders' obligations
pursuant to Section 10.1 upon the occurrence of an Event of Default, or
------------
(iii) such date as the Borrower may voluntarily and permanently terminate
the Revolving Credit Facility by payment in full of all Revolving Credit
Outstandings, Swing Line Outstandings and Letter of Credit Outstandings and
cancellation of all Letters of Credit.
"Revolving Loan" means any borrowing pursuant to an Advance under the
Revolving Credit Facility in accordance with Article II.
----------
20
"S&P" means Standard & Poor's Ratings Group, a division of XxXxxx-
Xxxx.
"Single Employer Plan" means any employee pension benefit plan covered
by Title IV of ERISA in respect of which the Borrower or any Subsidiary is
an "employer" as described in Section 4001(b) of ERISA and which is not a
Multiemployer Plan.
"Solvent" means, when used with respect to any Person, that at the
time of determination:
(i) the fair value of its assets (both at fair valuation and at
present fair saleable value on an orderly basis) is in excess of the
total amount of its liabilities, including Contingent Obligations; and
(ii) it is then able and expects to be able to pay its debts as
they mature; and
(iii) it has capital sufficient to carry on its business as
conducted and as proposed to be conducted.
"Standby Letter of Credit" means a letter of credit issued by the
Issuing Bank for the account of the Borrower in favor of a Person
advancing credit or securing an obligation on behalf of the Borrower.
"Stated Termination Date" means May 31, 2002.
"Stock Pledge Agreement" means, collectively or individually as the
context may indicate, (i) that certain Amended and Restated Stock Pledge
Agreement dated as of the date hereof between the Borrower or any
Subsidiary and the Agent for the benefit of the Agent and the Lenders, (ii)
the Charge Over Shares between the Borrower and the Agent dated as of the
date hereof relating to certain Material Foreign Subsidiaries, and (iii)
any additional Stock Pledge Agreement delivered to the Agent pursuant to
Section 8.19, as hereafter amended, supplemented or replaced from time to
------------
time.
"Subsidiary" means any corporation or other entity in which more than
50% of its outstanding voting stock or more than 50% of all equity
interests is owned directly or indirectly by the Borrower and/or by one or
more of the Borrower's Subsidiaries.
"Swap Agreement" means one or more agreements between the Borrower and
any Lender with respect to Indebtedness evidenced by any or all of the
Notes, on terms mutually acceptable to Borrower and such Lender, which
agreements create Rate Hedging Obligations.
"Swing Line" means the revolving line of credit established by
NationsBank in favor of the Borrower pursuant to Section 2.13.
------------
21
"Swing Line Loans" means loans made by NationsBank to the Borrower
pursuant to Section 2.13.
------------
"Swing Line Outstandings" means, as of any date of determination, the
aggregate principal amount of all Swing Line Loans then outstanding.
"Termination Event" means: (i) a "Reportable Event" described in
Section 4043 of ERISA and the regulations issued thereunder (unless the
notice requirement has been waived by applicable regulation); or (ii) the
withdrawal of the Borrower or any ERISA Affiliate from a Pension Plan
during a plan year in which it was a "substantial employer" as defined in
Section 4001(a)(2) of ERISA or was deemed such under Section 4068(f) of
ERISA; or (iii) the termination of a Pension Plan, the filing of a notice
of intent to terminate a Pension Plan or the treatment of a Pension Plan
amendment as a termination under Section 4041 of ERISA; or (iv) the
institution of proceedings to terminate a Pension Plan by the PBGC; or (v)
any other event or condition which would constitute grounds under Section
4042(a) of ERISA for the termination of, or the appointment of a trustee to
administer, any Pension Plan; or (vi) the partial or complete withdrawal of
the Borrower or any ERISA Affiliate from a Multiemployer Plan; or (vii) the
imposition of a Lien pursuant to Section 412 of the Code or Section 302 of
ERISA; or (viii) any event or condition which results in the reorganization
or insolvency of a Multiemployer Plan under Section 4241 or Section 4245 of
ERISA, respectively; or (ix) any event or condition which results in the
termination of a Multiemployer Plan under Section 4041A of ERISA or the
institution by the PBGC of proceedings to terminate a Multiemployer Plan
under Section 4042 of ERISA.
"Total Letter of Credit Commitment" means an amount not to exceed
$10,000,000.
"Total Revolving Credit Commitment" means a principal amount equal to
$200,000,000, as reduced from time to time in accordance with Section 2.7.
-----------
"Type" shall mean any type of Loan (i.e., a Base Rate Loan or
Eurodollar Rate Loan).
"Voting Stock" means shares of capital stock issued by a corporation,
or equivalent interests in any other Person, the holders of which are
ordinarily, in the absence of contingencies, entitled to vote for the
election of directors (or persons performing similar functions) of such
Person, even if the right so to vote has been suspended by the happening of
such a contingency.
1.3. Rules of Interpretation.
-----------------------
(a) All accounting terms not specifically defined herein shall have
the meanings assigned to such terms and shall be interpreted in accordance
with GAAP applied on a Consistent Basis.
22
(b) Each term defined in Article 1 or 9 of the Georgia Uniform
Commercial Code shall have the meaning given therein unless otherwise
defined herein, except to the extent that the Uniform Commercial Code of
another jurisdiction is controlling, in which case such terms shall have
the meaning given in the Uniform Commercial Code of the applicable
jurisdiction.
(c) The headings, subheadings and table of contents used herein or in
any other Loan Document are solely for convenience of reference and shall
not constitute a part of any such document or affect the meaning,
construction or effect of any provision thereof.
(d) Except as otherwise expressly provided, references herein to
articles, sections, paragraphs, clauses, annexes, appendices, exhibits and
schedules are references to articles, sections, paragraphs, clauses,
annexes, appendices, exhibits and schedules in or to this Agreement.
(e) All definitions set forth herein or in any other Loan Document
shall apply to the singular as well as the plural form of such defined
term, and all references to the masculine gender shall include reference to
the feminine or neuter gender, and vice versa, as the context may require.
(f) used herein or in any other Loan Document, words such as
"hereunder", "hereto", "hereof" and "herein" and other words of like import
shall, unless the context clearly indicates to the contrary, refer to the
whole of the applicable document and not to any particular article,
section, subsection, paragraph or clause thereof.
(g) References to "including" means including without limiting the
generality of any description preceding such term, and for purposes hereof
the rule of ejusdem generis shall not be applicable to limit a general
statement, followed by or referable to an enumeration of specific matters,
to matters similar to those specifically mentioned.
(h) All dates and times of day specified herein shall refer to such
dates and times at Charlotte, North Carolina.
(i) Each of the parties to the Loan Documents and their counsel have
reviewed and revised, or requested (or had the opportunity to request)
revisions to, the Loan Documents, and any rule of construction that
ambiguities are to be resolved against the drafting party shall be
inapplicable in the construing and interpretation of the Loan Documents and
all exhibits, schedules and appendices thereto.
(j) Any reference to an officer of the Borrower or any other Person by
reference to the title of such officer shall be deemed to refer to each
other officer of such Person, however titled, exercising the same or
substantially similar functions.
(k) All references to any agreement or document as amended, modified
or supplemented, or words of similar effect, shall mean such document or
agreement, as the case
23
may be, as amended, modified or supplemented from time to time only as and
to the extent permitted therein and in the Loan Documents.
24
ARTICLE II
The Revolving Credit Facility
-----------------------------
2.1. Revolving Loans.
---------------
(a) Commitment. Subject to the terms and conditions of this Agreement,
----------
each Lender severally agrees to make Advances to the Borrower under the
Revolving Credit Facility from time to time from the Closing Date until the
Revolving Credit Termination Date on a pro rata basis as to the total borrowing
requested by the Borrower on any day determined by such Lender's Applicable
Commitment Percentage up to but not exceeding the Revolving Credit Commitment of
such Lender, provided, however, that the Lenders will not be required and shall
-------- -------
have no obligation to make any such Advance (i) so long as a Default or an Event
of Default has occurred and is continuing or (ii) if the Agent has accelerated
the maturity of any of the Notes as a result of an Event of Default; provided
--------
further, however, that immediately after giving effect to each such Advance, the
-------
principal amount of Revolving Credit Outstandings plus Letter of Credit
Outstandings plus Swing Line Outstandings shall not exceed the Total Revolving
Credit Commitment. Within such limits, the Borrower may borrow, repay and
reborrow under the Revolving Credit Facility on a Business Day from the Closing
Date until, but (as to borrowings and reborrowings) not including, the Revolving
Credit Termination Date; provided, however, that (y) no Eurodollar Rate Loan
-------- -------
shall be made which has an Interest Period that extends beyond the Stated
Termination Date and (z) each Eurodollar Rate Loan may, subject to the
provisions of Section 2.8, be repaid only on the last day of the Interest Period
-----------
with respect thereto unless such payment is accompanied by the additional
payment, if any, required by Section 4.5.
-----------
(b) Amounts. Except as otherwise permitted by the Lenders from time to
--------
time, the aggregate unpaid principal amount of the Revolving Credit Outstandings
plus Letter of Credit Outstandings plus Swing Line Outstandings shall not exceed
at any time the Total Revolving Credit Commitment, and, in the event there shall
be outstanding any such excess, the Borrower shall immediately make such
payments and prepayments as shall be necessary to comply with this restriction.
Each Loan hereunder, other than Base Rate Refunding Loans, and each Conversion
under Section 2.8, shall be in an amount of at least $5,000,000, and, if greater
-----------
than $5,000,000, an integral multiple of $1,000,000.
(c) Advances and Rate Selection. (i) An Authorized Representative shall
---------------------------
give the Agent (A) at least three (3) Business Days' irrevocable telephonic
notice of each Eurodollar Rate Loan (whether representing an additional
borrowing hereunder of the Conversion of a borrowing hereunder prior to 10:30
A.M.; and (B) irrevocable telephonic notice of each Base Rate Loan (whether
representing an additional borrowing hereunder or the Conversion of a borrowing
hereunder) prior to 10:30 A.M. on the day of such proposed Base Rate Loan. Each
such Borrowing Notice or Interest Rate Selection Notice, which shall be
effective upon receipt by the Agent, shall specify the amount of the borrowing,
the Type of Loan, the date of borrowing and, if a Eurodollar Rate Loan the
Interest Period to be used in the computation of interest. An Authorized
Officer shall provide the agent written confirmation of each such telephonic
notice in the form attached hereto as Exhibit D-1 or D-2
------------------
25
or Exhibit E with appropriate insertions but failure to provide such
---------
confirmation shall not affect the validity of such telephonic notice. Notice of
receipt of such Borrowing Notice or Interest Rate Selection Notice, as the case
may be, together with the amount of each Lender's portion of an Advance
requested thereunder, shall be provided by the agent to each Lender by
telefacsimile transmission with reasonable promptness, but (provided the agent
shall have received such notice by 10:30 A.M.) not later than 1:00 P.M. on the
same day as the Agent's receipt of such notice.
(ii) Not later than 2:00 P.M. on the date specified for each borrowing
under this Section 2.1, each Lender shall, pursuant to the terms and subject to
-----------
the conditions of this Agreement, make the amount of the Advance or Advances to
be made by it on such day available by wire transfer to the Agent in the amount
of its pro rata share, determined according to such Lender's Applicable
Commitment Percentage of the Revolving Loan or Revolving Loans to be made on
such day. Such wire transfer shall be directed to the Agent at the Principal
Office and shall be in the form of Dollars constituting immediately available
funds. The amount so received by the Agent shall, subject to the terms and
conditions of this Agreement, be made available to the Borrower by delivery of
the proceeds thereof to the Borrower's Account or otherwise as shall be directed
in the applicable Borrowing Notice by the Authorized Representative and
reasonably acceptable to the Agent.
(iii) The Borrower shall have the option to elect the duration of the
initial and any subsequent Interest Periods and to Convert the Loans in
accordance with Section 2.8. Eurodollar Rate Loans and Base Rate Loans may be
-----------
outstanding at the same time, provided, however, there shall not be outstanding
-------- -------
at any one time Eurodollar Rate Loans having more than seven (7) different
Interest Periods. If the Agent does not receive a Borrowing Notice or an
Interest Rate Selection Notice giving notice of election of the duration of an
Interest Period or of Conversion of any Loan to or Continuation of a Loan as a
Eurodollar Rate Loan by the time prescribed by Section 2.1(c) or 2.8, the
---------------------
Borrower shall be deemed to have elected to Convert such Loans to (or continue
such Loan as) a Base Rate Loan until the Borrower notifies the Agent in
accordance with Section 2.8.
-----------
(iv) Notwithstanding the foregoing, if a drawing is made under any Letter
of Credit, such drawing is honored by the Issuing Bank prior to the Stated
Termination Date, and the Borrower shall not immediately fully reimburse the
Issuing Bank in respect of such drawing, (A) provided that the conditions to
making a Loan as herein provided shall then be satisfied, the Reimbursement
Obligation arising from such drawing shall be paid to the Issuing Bank by the
Agent without the requirement of notice to or from the Borrower from immediately
available funds which shall be advanced as a Base Rate Refunding Loan by each
Lender under the Revolving Credit Facility in an amount equal to such Lender's
Applicable Commitment Percentage of such Reimbursement Obligation, and (B) if
the conditions to making a Revolving Loan as herein provided shall not then be
satisfied, each of the Lenders shall fund by payment to the Agent (for the
benefit of the Issuing Bank) in immediately available funds the purchase from
the Issuing Bank of their respective Participations in the related Reimbursement
Obligation based on their respective Applicable Commitment Percentages of the
Total Letter of Credit Commitment. If a drawing is presented under any Letter
of Credit in accordance with the terms thereof and the Borrower shall not
immediately reimburse the Issuing Bank in respect thereof, then notice of such
drawing or payment shall be provided promptly by the Issuing Bank to the Agent
and the Agent shall provide notice to each Lender by telephone or telefacsimile
transmission. If notice to the Lenders of a drawing under any Letter of Credit
is given by the Agent
26
at or before 12:00 noon on any Business Day, each Lender shall, pursuant to the
conditions specified in this Section 2.1(c)(iv), either make a Base Rate
------------------
Refunding Loan or fund the purchase of its Participation in the amount of such
Lender's Applicable Commitment Percentage of such drawing or payment and shall
pay such amount to the Agent for the account of the Issuing Bank at the
Principal Office in Dollars and in immediately available funds before 2:30 P.M.
on the same Business Day. If notice to the Lenders of a drawing under a Letter
of Credit is given by the Agent after 12:00 noon on any Business Day, each
Lender shall, pursuant to the conditions specified in this Section 2.1(c)(iv),
------------------
either make a Base Rate Refunding Loan or fund the purchase of its Participation
in the amount of such Lender's Applicable Commitment Percentage of such drawing
or payment and shall pay such amount to the Agent for the account of the Issuing
Bank at the Principal Office in Dollars and in immediately available funds
before 12:00 noon on the next following Business Day. Any such Base Rate
Refunding Loan shall be advanced as, and shall continue as, a Base Rate Loan
unless and until the Borrower Converts such Base Rate Loan in accordance with
the terms of Section 2.8.
-----------
2.2. Payment of Interest. (a) The Borrower shall pay interest to the
-------------------
Agent for the account of each Lender on the outstanding and unpaid principal
amount of each Revolving Loan made by such Lender for the period commencing on
the date of such Revolving Loan until such Revolving Loan shall be due at the
then applicable Base Rate for Base Rate Loans or applicable Eurodollar Rate for
Eurodollar Rate Loans, as designated by the Authorized Representative pursuant
to Section 2.1; provided, however, that if any amount shall not be paid when due
----------- -------- -------
(at maturity, by acceleration or otherwise), all amounts outstanding hereunder
shall bear interest thereafter at the Default Rate.
(b) Interest on each Revolving Loan shall be computed on the basis of a
year of 360 days in the case of a Eurodollar Rate Loan and a year of 365 or 366
days (as the case may be) in the case of a Base Rate Loan and calculated in each
case for the actual number of days elapsed. Interest on each Revolving Loan
shall be paid (i) quarterly in arrears on the last Business Day of each January,
April, July and October, commencing July 31, 1997 for each Base Rate Loan, (ii)
on the last day of the applicable Interest Period for each Eurodollar Rate Loan
and, if such Interest Period extends for more than three (3) months, at
intervals of three (3) months after the first day of such Interest Period, and
(iii) upon payment in full of the principal amount of such Revolving Loan.
2.3. Payment of Principal. The principal amount of the Revolving
--------------------
Credit Outstandings shall be due and payable to the Agent for the benefit of
each Lender in full on the Revolving Credit Termination Date, or earlier as
specifically provided herein. The principal amount of any Base Rate Loan may
be prepaid in whole or in part at any time. The principal amount of any
Eurodollar Rate Loan may be prepaid only at the end of the applicable Interest
Period unless the Borrower shall pay to the Agent for the account of the Lenders
the additional amount, if any, required under Section 4.5. All prepayments of
-----------
Revolving Loans made by the Borrower shall be in the amount of $5,000,000 or
such greater amount which is an integral multiple of $1,000,000, or the amount
equal to all Revolving Credit Outstandings, or such other amount as necessary to
comply with Section 2.1(b) or Section 2.8.
-------------- -----------
2.4. Non-Conforming Payments. (a) Each payment of principal
-----------------------
(including any prepayment) and payment of interest and fees, and any other
amount required to be paid to the Lenders with respect to the Revolving Loans,
shall be made to the Agent at the Principal Office, for the account of each
Lender, in Dollars and in immediately available funds before 12:30 P.M. on the
27
date such payment is due. The Borrower shall give the Agent three (3) Business
Days prior written notice of any payment of principal of any Eurodollar Rate
Loan and one (1) Business Day notice of any payment of a Base Rate Loan, such
notice to be given prior to 10:00 A.M. and to specify (i) the date the payment
will be made and (ii) the Loan to which payment relates. The Agent may, but
shall not be obligated to, debit the amount of any such non-conforming payment
which is not made by such time to any ordinary deposit account, if any, of the
Borrower with the Agent.
(b) The Agent shall deem any payment made by or on behalf of the Borrower
hereunder that is not made both in Dollars and in immediately available funds
and prior to 12:30 P.M. on the date payment is due to be a non-conforming
payment. Any such payment shall not be deemed to be received by the Agent until
the later of (i) the time such funds become available funds and (ii) the next
Business Day. Any non-conforming payment may constitute or become a Default or
Event of Default. Interest shall continue to accrue on any principal as to
which a non-conforming payment is made until the later of (x) the date such
funds become available funds or (y) the next Business Day at the Default Rate
from the date such amount was due and payable.
(c) In the event that any payment hereunder or under the Notes becomes due
and payable on a day other than a Business Day, then such due date shall be
extended to the next succeeding Business Day unless provided otherwise under
clause (ii) of the definition of "Interest Period"; provided that interest shall
--------
continue to accrue during the period of any such extension and provided further,
-------- -------
that in no event shall any such due date be extended beyond the Revolving Credit
Termination Date.
2.5. Notes. Revolving Loans made by each Lender shall be evidenced by
-----
Notes in substantially the form set forth as Exhibit F-1 payable to the order of
-----------
such Lender in the respective amount of its Applicable Commitment Percentage of
the Revolving Credit Commitment, which Note shall be dated the Closing Date or a
later date pursuant to an Assignment and Acceptance and shall be duly completed,
executed and delivered by the Borrower. Swing Line Loans made by NationsBank
shall be evidenced by a Note in substantially the form as set forth as Exhibit
--------
F-2 payable to the order of NationsBank.
---
2.6. Pro Rata Payments. Except as otherwise provided herein, (a) each
-----------------
payment on account of the principal of and interest on the Revolving Loans and
the fees described in Section 2.10 shall be made to the Agent for the account of
------------
the Lenders pro rata based on their Applicable Commitment Percentages, (b) all
payments to be made by the Borrower for the account of each of the Lenders on
account of principal, interest and fees, shall be made without diminution,
setoff, recoupment or counterclaim, and (c) the Agent will promptly distribute
to the Lenders in immediately available funds payments received in fully
collected, immediately available funds from the Borrower.
2.7. Reductions. The Borrower shall, by notice from an Authorized
----------
Representative, have the right from time to time but not more frequently than
once each calendar month, upon not less than three (3) Business Days' written
notice to the Agent, effective upon receipt, to permanently reduce the Total
Revolving Credit Commitment. The Agent shall give each Lender, within one (1)
Business Day of receipt of such notice, telefacsimile notice, or telephonic
notice (confirmed in writing), of such reduction. Each such reduction shall be
in the aggregate amount of $10,000,000 or such greater
28
amount which is in an integral multiple of $5,000,000, or the entire remaining
Total Revolving Credit Commitment, and shall permanently reduce the Total
Revolving Credit Commitment. Each reduction of the Total Revolving Credit
Commitment shall be accompanied by payment of the Revolving Loans to the extent
that the principal amount of Revolving Credit Outstandings plus Letter of Credit
Outstandings plus Swing Line Outstandings exceeds the Total Revolving Credit
Commitment after giving effect to such reduction, together with accrued and
unpaid interest on the amounts prepaid. No such reduction shall result in the
payment of any Eurodollar Rate Loan other than on the last day of the Interest
Period of such Eurodollar Rate Loan unless such prepayment is accompanied by
amounts due, if any, under Section 4.5.
-----------
2.8. Conversions and Elections of Subsequent Interest Periods.
--------------------------------------------------------
Provided that no Default or Event of Default shall have occurred and be
continuing and subject to the limitations set forth below and in Article IV, the
----------
Borrower may:
(a) upon delivery, effective upon receipt, of a properly completed Interest
Rate Selection Notice to the Agent on or before 10:30 A.M. on any Business Day,
Convert all or a part of Eurodollar Rate Loans to Base Rate Loans on the last
day of the Interest Period for such Eurodollar Rate Loans; and
(b) upon delivery, effective upon receipt, of a properly completed Interest
Rate Selection Notice to the Agent on or before 10:30 A.M. three (3) Business
Days' prior to the date of such election or Conversion:
(i) elect a subsequent Interest Period for all or a portion of
Eurodollar Rate Loans to begin on the last day of the then current Interest
Period for such Eurodollar Rate Loans; and
(ii) Convert Base Rate Loans to Eurodollar Rate Loans on any
Business Day.
Each election and Conversion pursuant to this Section 2.8 shall be subject
-----------
to the limitations on Eurodollar Rate Loans set forth in the definition of
"Interest Period" herein and in Sections 2.1, 2.3 and Article IV. The Agent
----------------- ----------
shall give written notice to each Lender of such notice of election or
Conversion prior to 3:00 P.M. on the day such notice of election or Conversion
is received. All such Continuations or Conversions of Loans shall be effected
pro rata based on the Applicable Commitment Percentages of the Lenders.
2.9. Increase and Decrease in Amounts. The amount of the Total Revolving
--------------------------------
Credit Commitment which shall be available to the Borrower as Advances shall be
reduced by the aggregate amount of Outstanding Letters of Credit and Outstanding
Swing Line Loans.
29
2.10. Facility Fees.
-------------
(a) Unused Fee. For the period beginning on the Closing Date and ending on
----------
the Revolving Credit Termination Date, the Borrower agrees to pay to the Agent,
for the pro rata benefit of the Lenders based on their Applicable Commitment
Percentages, an unused fee equal to the Applicable Unused Fee multiplied by the
average daily amount by which the Total Revolving Credit Commitment exceeds the
sum of (i) Revolving Credit Outstandings without giving effect to Swing Line
Outstandings plus (ii) Letter of Credit Outstandings. Such fees shall be due in
arrears on the last Business Day of each January, April, July and October
commencing July 31,1997 to and on the Revolving Credit Termination Date.
Notwithstanding the foregoing, so long as any Lender fails to make available any
portion of its Revolving Credit Commitment when requested, such Lender shall not
be entitled to receive payment of its pro rata share of such fee until such
Lender shall make available such portion. Such fee shall be calculated on the
basis of a year of 360 days for the actual number of days elapsed.
2.11. Deficiency Advances. No Lender shall be responsible for any
-------------------
default of any other Lender in respect to such other Lender's obligation to make
any Loan or fund its purchase of any Participation hereunder nor shall the
Revolving Credit Commitment of any Lender hereunder be increased as a result of
such default of any other Lender. Without limiting the generality of the
foregoing, in the event any Lender shall fail to advance funds to the Borrower
as herein provided, the Agent may in its discretion, but shall not be obligated
to, advance under the Note in its favor as a Lender all or any portion of such
amount or amounts (each, a "deficiency advance") and shall thereafter be
entitled to payments of principal of and interest on such deficiency advance in
the same manner and at the same interest rate or rates to which such other
Lender would have been entitled had it made such advance under its Note;
provided that, upon payment to the Agent from such other Lender of the entire
--------
outstanding amount of each such deficiency advance, together with accrued and
unpaid interest thereon, from the most recent date or dates interest was paid to
the Agent by the Borrower on each Revolving Loan comprising the deficiency
advance at the interest rate per annum for overnight borrowing by the Agent from
the Federal Reserve Bank, then such payment shall be credited against the
applicable Note of the Agent in full payment of such deficiency advance and the
Borrower shall be deemed to have borrowed the amount of such deficiency advance
from such other Lender as of the most recent date or dates, as the case may be,
upon which any payments of interest were made by the Borrower thereon.
2.12. Use of Proceeds. The proceeds of the Loans made pursuant to the
---------------
Revolving Credit Facility hereunder shall be used by the Borrower for general
working capital needs and other corporate purposes, including the making of
Acquisitions and Capital Expenditures permitted hereunder.
2.13. Swing Line. (a) Notwithstanding any other provision of this
----------
Agreement to the contrary, in order to administer the Revolving Credit Facility
in an efficient manner and to minimize the transfer of funds between the Agent
and the Lenders, NationsBank shall make available Swing Line Loans to the
Borrower prior to the Revolving Credit Termination Date. NationsBank shall not
make any Swing Line Loan pursuant hereto (i) if to the actual knowledge of
NationsBank the Borrower is not in compliance with all the conditions to the
making of Revolving Loans set forth in this Agreement, (ii) if after giving
effect to such Swing Line Loan, the Swing Line Outstandings
30
exceed $10,000,000, or (iii) if after giving effect to such Swing Line Loan, the
sum of the Swing Line Outstandings, the Revolving Credit Outstandings and
Letter of Credit Outstandings exceeds the Total Revolving Credit Commitment.
Swing Line Loans shall be limited to Base Rate Loans. The Company may borrow,
repay and reborrow under this Section 2.13. Unless notified to the contrary by
------------
NationsBank, borrowings under the Swing Line shall be made in the minimum amount
of $100,000 or, if greater, in amounts which are integral multiples of $10,000,
or in the amount necessary to effect a Base Rate Refunding Loan, upon written
request by telefacsimile transmission, effective upon receipt, by an Authorized
Representative of the Borrower made to NationsBank not later than 12:30 P.M. on
the Business Day of the requested borrowing. Each such Borrowing Notice shall
specify the amount of the borrowing and the date of borrowing, and shall be in
the form of Exhibit D-2, with appropriate insertions. Unless notified to the
-----------
contrary by NationsBank, each repayment of a Swing Line Loan shall be in an
amount which is an integral multiple of $100,000 or the aggregate amount of all
Swing Line Outstandings. If the Borrower instructs NationsBank to debit any
demand deposit account of the Borrower in the amount of any payment with respect
to a Swing Line Loan, or NationsBank otherwise receives repayment, after 12:30
P.M. on a Business Day, such payment shall be deemed received on the next
Business Day.
(b) Swing Line Loans shall bear interest at the Base Rate or such other
rate as the Borrower and NationsBank shall agree, the interest payable on Swing
Line Loans is solely for the account of NationsBank, and all accrued and unpaid
interest on Swing Line Loans shall be payable on the dates and in the manner
provided in Sections 2.2(b) and 2.4 with respect to interest on Base Rate Loans.
-----------------------
The Swing Line Outstandings shall be evidenced by the Note delivered to
NationsBank pursuant to Section 2.5. Any amount of principal or interest which
-----------
is not paid when due shall bear interest thereafter at the Default Rate.
(c) Upon the making of a Swing Line Loan, each Lender shall be deemed to
have purchased from NationsBank a Participation therein in an amount equal to
that Lender's Applicable Commitment Percentage of such Swing Line Loan. Upon
demand made by NationsBank, each Lender shall, according to its Applicable
Commitment Percentage of such Swing Line Loan, promptly provide to NationsBank
its purchase price therefor in an amount equal to its Participation therein. Any
Advance made by a Lender pursuant to demand of NationsBank of the purchase price
of its Participation shall be deemed (i) provided that the conditions to making
Revolving Loans shall be satisfied, a Base Rate Refunding Loan under Section 2.1
-----------
until the Borrower Converts such Base Rate Loan in accordance with the terms of
Section 2.8, and (ii) in all other cases, the funding by each Lender of the
-----------
purchase price of its Participation in such Swing Line Loan. The obligation of
each Lender to so provide its purchase price to NationsBank shall be absolute
and unconditional and shall not be affected by the occurrence of an Event of
Default or any other occurrence or event.
The Borrower, at its option and subject to the terms hereof, may request an
Advance pursuant to Section 2.1 in an amount sufficient to repay Swing Line
-----------
Outstandings on any date and the Agent shall provide from the proceeds of such
Advance to NationsBank the amount necessary to repay such Swing Line
Outstandings (which NationsBank shall then apply to such repayment) and credit
any balance of the Advance in immediately available funds in the manner directed
by the Borrower pursuant to Section 2.1(c)(ii). The proceeds of such Advances
------------------
shall be paid to NationsBank for application to the Swing Line Outstandings and
the Lenders shall then be deemed to have made Loans in the amount of such
Advances. The Swing Line shall continue in effect until the Revolving Credit
31
Termination Date, at which time all Swing Line Outstandings and accrued interest
thereon shall be due and payable in full.
32
ARTICLE III
Letters of Credit
-----------------
3.1. Letters of Credit. The Issuing Bank agrees, subject to the terms
-----------------
and conditions of this Agreement, upon request of the Borrower to issue from
time to time for the account of the Borrower Letters of Credit upon delivery to
the Issuing Bank of an Application and Agreement for Letter of Credit relating
thereto in form and content acceptable to the Issuing Bank; provided, that (i)
--------
the Letter of Credit Outstandings shall not exceed the Total Letter of Credit
Commitment and (ii) no Letter of Credit shall be issued if, after giving effect
thereto, Letter of Credit Outstandings plus the Revolving Credit Outstandings
plus Swing Line Outstandings shall exceed the Total Revolving Credit Commitment.
No Letter of Credit shall have an expiry date (including all rights of the
Borrower or any beneficiary named in such Letter of Credit to require renewal)
or payment date occurring later than the earlier to occur of one year after the
date of its issuance or the fifth Business Day prior to the Stated Termination
Date.
3.2. Reimbursement.
-------------
(a) The Borrower hereby unconditionally agrees to pay to the Issuing Bank
immediately on demand at the Principal Office all amounts required to pay all
drafts drawn or purporting to be drawn under the Letters of Credit and all
reasonable expenses incurred by the Issuing Bank in connection with the Letters
of Credit, and in any event and without demand to place in possession of the
Issuing Bank (which shall include Advances under the Revolving Credit Facility
if permitted by Section 2.1 and Swing Line Loans if permitted by Section 2.14)
----------- ------------
sufficient funds to pay all debts and liabilities arising under any Letter of
Credit. The Issuing Bank agrees to give the Borrower prompt notice of any
request for a draw under a Letter of Credit. The Issuing Bank may charge any
account the Borrower may have with it for any and all amounts the Issuing Bank
pays under a Letter of Credit, plus charges and reasonable expenses as from time
to time agreed to by the Issuing Bank and the Borrower; provided that to the
--------
extent permitted by Section 2.1(c)(iv) and Section 2.14, amounts shall be paid
------------------ ------------
pursuant to Advances under the Revolving Credit Facility or, if the Borrower
shall elect, by Swing Line Loans. The Borrower agrees to pay the Issuing Bank
interest on any Reimbursement Obligations not paid when due hereunder at the
Base Rate plus two percent (2.0%), or the maximum rate permitted by applicable
law, if lower, such rate to be calculated on the basis of a year of 360 days for
actual days elapsed.
(b) In accordance with the provisions of Section 2.1(c), the Issuing Bank
--------------
shall notify the Agent of any drawing under any Letter of Credit promptly
following the receipt by the Issuing Bank of such drawing.
(c) Each Lender (other than the Issuing Bank) shall automatically acquire
on the date of issuance thereof, a Participation in the liability of the Issuing
Bank in respect of each Letter of Credit in an amount equal to such Lender's
Applicable Commitment Percentage of such liability, and to the extent that the
Borrower is obligated to pay the Issuing Bank under Section 3.2(a), each Lender
--------------
(other than the Issuing Bank) thereby shall absolutely, unconditionally and
irrevocably assume, and
33
shall be unconditionally obligated to pay to the Issuing Bank as hereinafter
described, its Applicable Commitment Percentage of the liability of the Issuing
Bank under such Letter of Credit.
(i) Each Lender (including the Issuing Bank in its capacity as
a Lender) shall, subject to the terms and conditions of Article II,
----------
pay to the Agent for the account of the Issuing Bank at the Principal
Office in Dollars and in immediately available funds, an amount equal
to its Applicable Commitment Percentage of any drawing under a Letter
of Credit, such funds to be provided in the manner described in
Section 2.1(c)(iv).
------------------
(ii) Simultaneously with the making of each payment by a Lender
to the Issuing Bank pursuant to Section 2.1(c)(iv)(B), such Lender
---------------------
shall, automatically and without any further action on the part of the
Issuing Bank or such Lender, acquire a Participation in an amount
equal to such payment (excluding the portion thereof constituting
interest accrued prior to the date the Lender made its payment) in the
related Reimbursement Obligation of the Borrower. The Reimbursement
Obligations of the Borrower shall be immediately due and payable
whether by Advances made in accordance with Section 2.1(c)(iv), Swing
-------------------
Line Loans made in accordance with Section 2.13, or otherwise.
------------
(iii) Each Lender's obligation to make payment to the Agent
for the account of the Issuing Bank pursuant to Section 2.1(c)(iv) and
------------------
this Section 3.2(c), and the right of the Issuing Bank to receive the
--------------
same, shall be absolute and unconditional, shall not be affected by
any circumstance whatsoever and shall be made without any offset,
abatement, withholding or reduction whatsoever. If any Lender is
obligated to pay but does not pay amounts to the Agent for the account
of the Issuing Bank in full upon such request as required by Section
-------
2.1(c)(iv) or this Section 3.2(c), such Lender shall, on demand, pay
---------- --------------
to the Agent for the account of the Issuing Bank interest on the
unpaid amount for each day during the period commencing on the date of
notice given to such Lender pursuant to Section 2.1(c) until such
--------------
Lender pays such amount to the Agent for the account of the Issuing
Bank in full at the interest rate per annum for overnight borrowing by
the Agent from the Federal Reserve Bank.
(iv) In the event the Lenders have purchased Participations in
any Reimbursement Obligation as set forth in clause (ii) above, then at any
time payment (in fully collected, immediately available funds) of such
Reimbursement Obligation, in whole or in part, is received by the Issuing
Bank from the Borrower, the Issuing Bank shall promptly pay to each Lender
an amount equal to its Applicable Commitment Percentage of such payment
from the Borrower.
(d) Promptly following the end of each calendar quarter, the Issuing Bank
shall deliver to the Agent a notice describing the aggregate undrawn amount of
all Letters of Credit at the end of such quarter. Upon the request of any
Lender from time to time, the Issuing Bank shall deliver to
34
the Agent, and the Agent shall deliver to such Lender, any other information
reasonably requested by such Lender with respect to each outstanding Letter of
Credit.
(e) The issuance by the Issuing Bank of each Letter of Credit shall, in
addition to the conditions precedent set forth in Article VI, be subject to the
----------
conditions that such Letter of Credit be in such form and contain such terms as
shall be reasonably satisfactory to the Issuing Bank consistent with the then
current practices and procedures of the Issuing Bank with respect to similar
letters of credit, and the Borrower shall have executed and delivered such other
instruments and agreements relating to such Letters of Credit as the Issuing
Bank shall have reasonably requested consistent with such practices and
procedures and shall not be in conflict with any of the express terms herein
contained. All Letters of Credit shall be issued pursuant to and subject to the
Uniform Customs and Practice for Documentary Credits, 1993 revision,
International Chamber of Commerce Publication No. 500 and all subsequent
amendments and revisions thereto.
(f) The Borrower agrees that the Issuing Bank may, in its sole discretion,
accept or pay, as complying with the terms of any Letter of Credit, any drafts
or other documents otherwise in order which may be signed or issued by an
administrator, executor, trustee in bankruptcy, debtor in possession, assignee
for the benefit of creditors, liquidator, receiver, attorney in fact or other
legal representative of a party who is authorized under such Letter of Credit to
draw or issue any drafts or other documents.
(g) Without limiting the generality of the provisions of Section 12.9, the
------------
Borrower hereby agrees to indemnify and hold harmless the Issuing Bank, each
other Lender and the Agent from and against any and all claims and damages,
losses, liabilities, reasonable costs and expenses which the Issuing Bank, such
other Lender or the Agent may incur (or which may be claimed against the Issuing
Bank, such other Lender or the Agent) by any Person by reason of or in
connection with the issuance or transfer of or payment or failure to pay under
any Letter of Credit; provided that the Borrower shall not be required to
--------
indemnify the Issuing Bank, any other Lender or the Agent for any claims,
damages, losses, liabilities, costs or expenses to the extent, but only to the
extent, (i) caused by the willful misconduct or gross negligence of the party to
be indemnified or (ii) caused by the failure of the Issuing Bank to pay under
any Letter of Credit after the presentation to it of a request for payment
strictly complying with the terms and conditions of such Letter of Credit,
unless such payment is prohibited by any law, regulation, court order or decree.
The indemnification and hold harmless provisions of this Section 3.2(g) shall
---------------
survive repayment of the Obligations, occurrence of the Revolving Credit
Termination Date and expiration or termination of this Agreement.
(h) Without limiting Borrower's rights as set forth in Section 3.2(g), the
--------------
obligation of the Borrower to immediately reimburse the Issuing Bank for
drawings made under Letters of Credit and the Issuing Bank's right to receive
such payment shall be absolute, unconditional and irrevocable, and such
obligations of the Borrower shall be performed strictly in accordance with the
terms of this Agreement and such Letters of Credit and the related Applications
and Agreement for any Letter of Credit, under all circumstances whatsoever,
including the following circumstances:
35
(i) any lack of validity or enforceability of the Letter of
Credit, the obligation supported by the Letter of Credit or any other
agreement or instrument relating thereto (collectively, the "Related
LC Documents");
(ii) any amendment or waiver of or any consent to or departure
from all or any of the Related LC Documents;
(iii) the existence of any claim, setoff, defense (other than
the defense of payment in accordance with the terms of this Agreement)
or other rights which the Borrower may have at any time against any
beneficiary or any transferee of a Letter of Credit (or any persons or
entities for whom any such beneficiary or any such transferee may be
acting), the Agent, the Lenders or any other Person, whether in
connection with the Loan Documents, the Related LC Documents or any
unrelated transaction;
(iv) any breach of contract or other dispute between the
Borrower and any beneficiary or any transferee of a Letter of Credit
(or any persons or entities for whom such beneficiary or any such
transferee may be acting), the Agent, the Lenders or any other Person;
(v) any draft, statement or any 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 whatsoever;
(vi) any delay, extension of time, renewal, compromise or other
indulgence or modification granted or agreed to by the Agent, with or
without notice to or approval by the Borrower in respect of any of
Borrower's Obligations under this Agreement; or
(vii) any other circumstance or happening whatsoever, whether
or not similar to any of the foregoing.
3.3. Letter of Credit Facility Fees. The Borrower shall pay to the
------------------------------
Agent, (i) for the pro rata benefit of the Lenders based on their Applicable
Commitment Percentages, (A) a fee on the aggregate amount available to be drawn
on each outstanding Standby Letter of Credit at a rate equal to the Applicable
Margin for Eurodollar Rate Loans, and (B) fees for such period at those rates
established from time to time by the Issuing Bank for Commercial Letters of
Credit and (ii) for the Issuing Bank, 0.125% based on the aggregate amount
available to be drawn on each outstanding Letter of Credit. Such fees shall be
due with respect to each Letter of Credit quarterly in arrears on the last day
of each January, April, July and October, the first such payment to be made on
the first such date following the issuance of a Letter of Credit. The fees
described in this Section 3.3 shall be calculated on the basis of a year of 360
-----------
days for the actual number of days elapsed.
36
3.4. Administrative Fees. The Borrower shall pay to the Issuing Bank
-------------------
such administrative fee and other fees, if any, in connection with the Letters
of Credit in such amounts and at such times as the Issuing Bank and the Borrower
shall agree from time to time.
37
ARTICLE IV
Change in Circumstances
-----------------------
4.1. Increased Cost and Reduced Return. (a) If, after the date
---------------------------------
hereof, the adoption of any applicable law, rule, or regulation, or any change
in any applicable law, rule, or regulation, 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 Lender (or its Applicable Lending Office) with any request or
directive (whether or not having the force of law) of any such governmental
authority, central bank, or comparable agency:
(i) shall subject such Lender (or its Applicable Lending Office) to
any tax, duty, or other charge with respect to any Eurodollar Rate Loans,
its Note, or its obligation to make Eurodollar Rate Loans, or change the
basis of taxation of any amounts payable to such Lender (or its Applicable
Lending Office) under this Agreement or its Note in respect of any
Eurodollar Rate Loans (other than taxes imposed on the overall net income
of such Lender by the jurisdiction in which such Lender has its principal
office or such Applicable Lending Office);
(ii) shall impose, modify, or deem applicable any reserve, special
deposit, assessment, or similar requirement (other than the Reserve
Requirement utilized in the determination of the Eurodollar Rate) relating
to any extensions of credit or other assets of, or any deposits with or
other liabilities or commitments of, such Lender (or its Applicable Lending
Office), including the Revolving Credit Commitment of such Lender
hereunder; or
(iii) shall impose on such Lender (or its Applicable Lending Office)
or on the United States market for certificates of deposit or the London
interbank market any other condition affecting this Agreement or its Note
or any of such extensions of credit or liabilities or commitments;
and the result of any of the foregoing is to increase the cost to such Lender
(or its Applicable Lending Office) of making, Converting into, Continuing, or
maintaining any Eurodollar Rate Loans or to reduce any sum received or
receivable by such Lender (or its Applicable Lending Office) under this
Agreement or its Note with respect to any Eurodollar Rate Loans, then the
Borrower shall pay to such Lender on demand such amount or amounts as will
compensate such Lender for such increased cost or reduction. If any Lender
requests compensation by the Borrower under this Section 4.1(a), the Borrower
--------------
may, by notice to such Lender (with a copy to the Agent), suspend the obligation
of such Lender to make or Continue Loans of the Type with respect to which such
compensation is requested, or to Convert Loans of any other Type into Loans of
such Type, until the event or condition giving rise to such request ceases to be
in effect (in which case the provisions of Section 4.4 shall be applicable);
-----------
provided that such suspension shall not affect the right of such Lender to
--------
receive the compensation so requested.
(b) If, after the date hereof, any Lender shall have determined that the
adoption of any applicable law, rule, or regulation regarding capital adequacy
or any change therein or in the
38
interpretation or administration thereof by any governmental authority, central
bank, or comparable agency charged with the interpretation or administration
thereof, or any request or directive regarding capital adequacy (whether or not
having the force of law) of any such governmental authority, central bank, or
comparable agency, has or would have the effect of reducing the rate of return
on the capital of such Lender or any corporation controlling such Lender as a
consequence of such Lender's obligations hereunder to a level below that which
such Lender or such corporation could have achieved but for such adoption,
change, request, or directive (taking into consideration its policies with
respect to capital adequacy), then from time to time upon demand the Borrower
shall pay to such Lender such additional amount or amounts as will compensate
such Lender for such reduction.
(c) Each Lender shall notify the Borrower and the Agent within 3 months
after the occurrence of any event of which it has knowledge, occurring after the
date hereof, which will entitle such Lender to compensation pursuant to this
Section and will designate a different Applicable Lending Office if such
designation will avoid the need for, or reduce the amount of, such compensation
and will not, in the judgment of such Lender, be otherwise disadvantageous to
it. Any Lender claiming compensation under this Section shall furnish to the
Borrower and the Agent a statement setting forth the additional amount or
amounts to be paid to it hereunder which shall be conclusive in the absence of
manifest error. In determining such amount, such Lender may use any reasonable
averaging and attribution methods.
4.2. Limitation on Types of Loans. If on or prior to the first day of any
----------------------------
Interest Period for any Eurodollar Rate Loan:
(a) the Agent determines (which determination shall be conclusive)
that by reason of circumstances affecting the relevant market, adequate and
reasonable means do not exist for ascertaining the Eurodollar Rate for such
Interest Period; or
(b) the Required Lenders determine (which determination shall be
conclusive) and notify the Agent that the Eurodollar Rate will not
adequately and fairly reflect the cost to the Lenders of funding Eurodollar
Rate Loans for such Interest Period;
then the Agent shall give the Borrower prompt notice thereof specifying the
relevant Type of Loans and the relevant amounts or periods, and so long as such
condition remains in effect, the Lenders shall be under no obligation to make
additional Loans of such Type, Continue Loans of such Type, or to Convert Loans
of any other Type into Loans of such Type and the Borrower shall, on the last
day(s) of the then current Interest Period(s) for the outstanding Loans of the
affected Type, either prepay such Loans or Convert such Loans into another Type
of Loan in accordance with the terms of this Agreement.
4.3. Illegality. Notwithstanding any other provision of this
----------
Agreement, in the event that it becomes unlawful for any Lender or its
Applicable Lending Office to make, maintain, or fund Eurodollar Rate Loans
hereunder, then such Lender shall promptly notify the Borrower thereof and such
Lender's obligation to make or Continue Eurodollar Rate Loans and to Convert
other Types of Loans into Eurodollar Rate Loans shall be suspended until such
time as such Lender may again make,
39
maintain, and fund Eurodollar Rate Loans (in which case the provisions of
Section 4.4 shall be applicable).
-----------
4.4. Treatment of Affected Loans. If the obligation of any Lender to
---------------------------
make a particular Type of Eurodollar Rate Loan or to Continue, or to Convert
Loans of any other Type into, Loans of a particular Type shall be suspended
pursuant to Section 4.1 or 4.3 hereof (Loans of such Type being herein called
------------------
"Affected Loans" and such Type being herein called the "Affected Type"), such
--------------- -------------
Lender's Affected Loans shall be automatically Converted into Base Rate Loans on
the last day(s) of the then current Interest Period(s) for Affected Loans (or,
in the case of a Conversion required by Section 4.3 hereof, on such earlier date
-----------
as such Lender may specify to the Borrower with a copy to the Agent) and, unless
and until such Lender gives notice as provided below that the circumstances
specified in Section 4.1 or 4.3 hereof that gave rise to such Conversion no
------------------
longer exist:
(a) to the extent that such Lender's Affected Loans have been so
Converted, all payments and prepayments of principal that would otherwise
be applied to such Lender's Affected Loans shall be applied instead to its
Base Rate Loans; and
(b) all Loans that would otherwise be made or Continued by such
Lender as Loans of the Affected Type shall be made or Continued instead as
Base Rate Loans, and all Loans of such Lender that would otherwise be
Converted into Loans of the Affected Type shall be Converted instead into
(or shall remain as) Base Rate Loans.
If such Lender gives notice to the Borrower (with a copy to the Agent) that the
circumstances specified in Section 4.1 or 4.3 hereof that gave rise to the
------------------
Conversion of such Lender's Affected Loans pursuant to this Section 4.4 no
------------
longer exist (which such Lender agrees to do promptly upon such circumstances
ceasing to exist) at a time when Loans of the Affected Type made by other
Lenders are outstanding, such Lender's Base Rate Loans shall be automatically
Converted, on the first day(s) of the next succeeding Interest Period(s) for
such outstanding Loans of the Affected Type, to the extent necessary so that,
after giving effect thereto, all Loans held by the Lenders holding Loans of the
Affected Type and by such Lender are held pro rata (as to principal amounts,
Types, and Interest Periods) in accordance with their respective Revolving
Credit Commitments.
4.5. Compensation. Upon the request of any Lender, the Borrower shall
------------
pay to such Lender such amount or amounts as shall be sufficient (in the
reasonable opinion of such Lender) to compensate it for any loss, cost, or
expense (including loss of anticipated profits) incurred by it as a result of:
(a) any payment, prepayment, or Conversion of a Eurodollar Rate Loan
for any reason (including, without limitation, the acceleration of the
Loans pursuant to Section 9.1) on a date other than the last day of the
-----------
Interest Period for such Loan; or
(b) any failure by the Borrower for any reason (including, without
limitation, the failure of any condition precedent specified in Article VI
----------
to be satisfied) to borrow, Convert, Continue, or prepay a Eurodollar Rate
Loan on the date for such borrowing, Conversion,
40
Continuation, or prepayment specified in the relevant notice of borrowing,
prepayment, Continuation, or Conversion under this Agreement.
4.6. Taxes. (a) Any and all payments by the Borrower to or for the
-----
account of any Lender or the Agent hereunder or under any other Loan Document
shall be made free and clear of and without deduction for any and all present or
future taxes, duties, levies, imposts, deductions, charges or withholdings, and
all liabilities with respect thereto, excluding, in the case of each Lender and
---------
the Agent, taxes imposed on its income, and franchise taxes imposed on it, by
the jurisdiction under the laws of which such Lender (or its Applicable Lending
Office) or the Agent (as the case may be) is organized or any political
subdivision thereof (all such non-excluded taxes, duties, levies, imposts,
deductions, charges, withholdings, and liabilities being hereinafter referred to
as "Taxes"). If the Borrower shall be required by law to deduct any Taxes from
-----
or in respect of any sum payable under this Agreement or any other Loan Document
to any Lender or the Agent, (i) the sum payable shall be increased as necessary
so that after making all required deductions (including deductions applicable to
additional sums payable under this Section 4.6) such Lender or the Agent
-----------
receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions, (iii) the
Borrower shall pay the full amount deducted to the relevant taxation authority
or other authority in accordance with applicable law, and (iv) the Borrower
shall furnish to the Agent, at its address referred to in Section 12.2, the
-------------
original or a certified copy of a receipt evidencing payment thereof.
(b) In addition, the Borrower agrees to pay any and all present or future
stamp or documentary taxes and any other excise or property taxes or charges or
similar levies which arise from any payment made under this Agreement or any
other Loan Document or from the execution or delivery of, or otherwise with
respect to, this Agreement or any other Loan Document (hereinafter referred to
as "Other Taxes").
-----------
(c) The Borrower agrees to indemnify each Lender and the Agent for the full
amount of Taxes and Other Taxes (including, without limitation, any Taxes or
Other Taxes imposed or asserted by any jurisdiction on amounts payable under
this Section 4.6) paid by such Lender or the Agent (as the case may be) and any
-----------
liability (including penalties, interest, and expenses) arising therefrom or
with respect thereto.
(d) Each Lender organized under the laws of a jurisdiction outside the
United States, on or prior to the date of its execution and delivery of this
Agreement in the case of each Lender listed on the signature pages hereof and on
or prior to the date on which it becomes a Lender in the case of each other
Lender, and from time to time thereafter if requested in writing by the Borrower
or the Agent (but only so long as such Lender remains lawfully able to do so),
shall provide the Borrower and the Agent with (i) Internal Revenue Service Form
1001 or 4224, as appropriate, or any successor form prescribed by the Internal
Revenue Service, certifying that such Lender is entitled to benefits under an
income tax treaty to which the United States is a party which reduces the rate
of withholding tax on payments of interest or certifying that the income
receivable pursuant to this Agreement is effectively connected with the conduct
of a trade or business in the United States, (ii) Internal Revenue Service Form
W-8 or W-9, as appropriate, or any successor form prescribed by the Internal
Revenue Service, and (iii) any other form or certificate required by any taxing
authority (including
41
any certificate required by Sections 871(h) and 881(c) of the Internal Revenue
Code), certifying that such Lender is entitled to an exemption from or a reduced
rate of tax on payments pursuant to this Agreement or any of the other Loan
Documents.
(e) For any period with respect to which a Lender has failed to provide the
Borrower and the Agent with the appropriate form pursuant to Section 4.6(d)
--------------
(unless such failure is due to a change in treaty, law, or regulation occurring
subsequent to the date on which a form originally was required to be provided),
such Lender shall not be entitled to indemnification under Section 4.6(a) or
-----------------
4.6(b) with respect to Taxes imposed by the United States; provided, however,
------ -------- -------
that should a Lender, which is otherwise exempt from or subject to a reduced
rate of withholding tax, become subject to Taxes because of its failure to
deliver a form required hereunder, the Borrower shall take such steps as such
Lender shall reasonably request to assist such Lender to recover such Taxes.
(f) If the Borrower is required to pay additional amounts to or for the
account of any Lender pursuant to this Section 4.6, then such Lender will agree
-----------
to use reasonable efforts to change the jurisdiction of its Applicable Lending
Office so as to eliminate or reduce any such additional payment which may
thereafter accrue if such change, in the judgment of such Lender, is not
otherwise disadvantageous to such Lender.
(g) Within thirty (30) days after the date of any payment of Taxes, the
Borrower shall furnish to the Agent the original or a certified copy of a
receipt evidencing such payment.
(h) Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in
this Section 4.6 shall survive the termination of the Revolving Credit
-----------
Commitments and the payment in full of the Notes.
4.7. Replacement Banks. The Borrower may, in its sole discretion, on ten
-----------------
(10) Business Days' prior written notice to the Agent and a Lender, cause a
Lender who has incurred increased costs or is unable to make Eurodollar Rate
Loans to (and such Lender shall) assign, pursuant to Section 12.1, all of its
------------
rights and obligations under this Agreement to an Eligible Assignee designated
by the Borrower which is willing to become a Lender for a purchase price equal
to the outstanding principal amount of the Loans payable to such Lender plus any
accrued but unpaid interest on such Loans, any accrued but unpaid fees with
respect to such Lender's Revolving Credit Commitment and any other amount
payable to such Lender under this Agreement; provided, however, that any
-------- -------
expenses or other amounts which would be owing to such Lender pursuant to any
indemnification provision hereof (including, if applicable, Section 4.5) shall
-----------
be payable by the Borrower as if the Borrower had prepaid the Loans of such
Lender rather than such Lender having assigned its interest hereunder. The
Borrower or the assignee shall pay the applicable processing fee under Section
-------
12.1.
----
42
ARTICLE V
Security
--------
5.1. Stock Pledge. As security for the full and timely payment and
------------
performance of (i) all Obligations now existing or hereafter arising, and (ii)
certain Guarantor's obligations under the Facility Guaranty, the Borrower and
each Guarantor owning any capital stock of any domestic Subsidiary or Material
Foreign Subsidiary (direct or indirect) of the Borrower shall on or before the
Closing Date deliver to the Agent, in form and substance reasonably acceptable
to the Agent, the Stock Pledge Agreement together with certificates representing
such Pledged Stock and such stock powers duly executed in blank as may be
required by the Agent in accordance with the terms hereof and thereof. In
addition to any Stock Pledge Agreement required to be delivered pursuant to
Section 8.19 hereof, the Borrower and each Subsidiary hereby agree to pledge to
------------
the Agent for the benefit of the Lenders all of the capital stock, with respect
to any domestic Subsidiary, and 65% of all of the capital stock, with respect to
any Material Foreign Subsidiary, of any hereafter acquired or created Subsidiary
owned by the Borrower or such Subsidiary, as the case may be, and deliver to the
Agent a Stock Pledge Agreement substantially in the form of Exhibit K hereto
---------
within thirty (30) days of the acquisition or creation of such Subsidiary.
5.2. Guaranty. To guarantee the full and timely payment and
--------
performance of all Obligations now existing or hereafter arising, the Borrower
shall cause the Facility Guaranty to be delivered by each Subsidiary of the
Borrower which is organized under the laws of the United States, a state or
territory thereof, in form and substance reasonably acceptable to the Agent, on
or before the Closing Date.
5.3. Further Assurances. At the request of the Agent, the Borrower
------------------
will or will cause its Subsidiaries, as the case may be, to execute, by its duly
authorized officers, alone or with the Agent, any certificates, instrument,
statement or document, or to procure any such certificates, instrument,
statement or document, or to take such other action (and pay all connected
costs) which the Agent reasonably deems necessary from time to time to create,
continue or preserve the liens and security interests in the Pledged Stock (and
the perfection and priority thereof) of the Agent contemplated hereby and by the
other Loan Documents.
43
ARTICLE VI
Conditions to Making Loans and Issuing Letters of Credit
--------------------------------------------------------
6.1. Conditions of Initial Advance. The obligation of the Lenders to
------------------------------
make the initial Advance under the Revolving Credit Facility, and of the Issuing
Bank to issue any Letter of Credit, and of NationsBank to make any Swing Line
Loan, is subject to the conditions precedent that:
(a) the Agent shall have received on the Closing Date, in form and
substance satisfactory to the Agent and Lenders, the following:
(i) executed originals of each of this Agreement, the Notes,
the initial Facility Guaranties, the LC Account Agreement and the
other Loan Documents, together with all schedules and exhibits
thereto;
(ii) the favorable written opinion or opinions with respect to
the Loan Documents and the transactions contemplated thereby of
[special] counsel to the Loan Parties dated the Closing Date,
addressed to the Agent and the Lenders and satisfactory to Xxxxx Xxxxx
Mulliss & Xxxxx, L.L.P., special counsel to the Agent, substantially
in the form of Exhibit G;
---------
(iii) resolutions of the boards of directors or other
appropriate governing body (or of the appropriate committee thereof)
of each of the Loan Parties certified by its secretary or assistant
secretary as of the Closing Date, approving and adopting the Loan
Documents to be executed by such Person, and authorizing the execution
and delivery thereof;
(iv) specimen signatures of officers of each of the Loan
Parties executing the Loan Documents on behalf of such Person,
certified by the secretary or assistant secretary of such Person;
(v) the charter documents of each of the Loan Parties certified
as of a recent date by the Secretary of State of its state of
organization;
(vi) the bylaws of each of the Loan Parties certified as of the
Closing Date as true and correct by its secretary or assistant
secretary;
(vii) certificates issued as of a recent date by the
Secretaries of State of the respective jurisdictions of formation of
each of the Loan Parties as to the due existence and good standing of
such Person;
(viii) appropriate certificates of qualification to do
business, good standing and, where appropriate, authority to conduct
business under assumed name, issued in respect of each of the Loan
Parties as of a recent date by the Secretary of State or
44
comparable official of each jurisdiction in which the failure to be
qualified to do business or authorized so to conduct business could
have a Material Adverse Effect;
(ix) notice of appointment of the initial Authorized
Representative(s);
(x) certificate of an Authorized Representative dated the
Closing Date demonstrating compliance with the financial covenants
contained in Sections 9.1(a) through 9.1(c) and Section 9.3 as of the
--------------- ------ -----------
most recent fiscal quarter ended, substantially in the form of Exhibit
-------
H;
-
(xi) evidence of all insurance required by the Loan Documents;
(xii) an initial Borrowing Notice, if any;
(xiii) evidence that all fees payable by the Borrower on the
Closing Date to the Agent, NCMI and the Lenders have been paid in
full;
(xiv) Uniform Commercial Code and other search results showing
that no Liens are in effect on any assets of the Borrower or any of
its Subsidiaries except for Permitted Liens;
(xv) audited consolidated balance sheets of the Borrower and
its Subsidiaries as at October 31, 1994, 1995 and 1996 and the notes
thereto and the related consolidated statements of earnings,
stockholders' equity and cash flows for the Fiscal Year then ended as
examined and certified by KPMG Peat Marwick, L.L.P.;
(xvi) unaudited consolidated and interim financial statements
of the Borrower and its Subsidiaries consisting of a consolidated
balance sheet and related consolidated statements of earnings,
stockholders' equity and cash flows, in each case without notes, for
and as of the three (3) month period ended January 31, 1997;
[(xvii) financial projections prepared by the Borrower
demonstrating compliance with the financial covenants set forth in
Sections 9.1(a) through 9.1(c) and 9.3 through the Stated Termination
--------------- ------ ---
Date;] and
such other documents, instruments, certificates and
opinions as the Agent or any Lender may reasonably request on or prior to
the Closing Date in connection with the consummation of the transactions
contemplated hereby; and
(b) In the good faith judgment of the Agent and the Lenders:
(i) there shall not have occurred or become known to the
Agent or the Lenders any event, condition, situation or status since
October 31, 1996 concerning the business, assets, operations,
condition (financial or otherwise) or
45
prospects of the Borrower and its Subsidiaries or in the financial and
business projections, budgets, proforma data and other information
regarding such entities as represented prior to the Closing Date that
has had or could reasonably be expected to result in a Material
Adverse Effect;
(ii) no litigation, action, suit, investigation or other
arbitral, administrative or judicial proceeding shall be pending or
threatened in any court or before any arbitrator or governmental
authority which could reasonably be expected to result in a Material
Adverse Effect; and
(iii) the Loan Parties shall have received all approvals,
consents and waivers, and shall have made or given all necessary
filings and notices as shall be required to consummate the
transactions contemplated hereby without the occurrence of any default
under, conflict with or violation of (A) any applicable law, rule,
regulation, order or decree of any Governmental Authority or arbitral
authority or (B) any agreement, document or instrument to which any of
the Loan Parties is a party or by which any of them or their
properties is bound;
6.2. Conditions of Revolving Loans and Letters of Credit. The
---------------------------------------------------
obligations of the Lenders to make any Revolving Loans, and the Issuing Bank to
issue Letters of Credit and NationsBank to make Swing Line Loans, hereunder on
or subsequent to the Closing Date are subject to the satisfaction of the
following conditions:
(a) the Agent or, in the case of Swing Line Loans, NationsBank shall
have received a Borrowing Notice if required by Article II;
----------
(b) the representations and warranties of the Loan Parties set forth
in Article VII and in each of the other Loan Documents shall be true and
------------
correct in all material respects on and as of the date of such Advance,
Swing Line Loan or Letter of Credit issuance or renewal, with the same
effect as though such representations and warranties had been made on and
as of such date, except to the extent that such representations and
warranties expressly relate to an earlier date and except that the
financial statements referred to in Section 7.6(a)(i) shall be deemed to be
-----------------
those financial statements most recently delivered to the Agent and the
Lenders pursuant to Section 8.1 from the date financial statements are
-----------
delivered to the Agent and the Lenders in accordance with such Section;
(c) in the case of the issuance of a Letter of Credit, the Borrower
shall have executed and delivered to the Issuing Bank an Application and
Agreement for Letter of Credit in form and content acceptable to the
Issuing Bank together with such other instruments and documents as it shall
request;
(d) at the time of (and after giving effect to) each Advance, Swing
Line Loan or the issuance of a Letter of Credit, no Default or Event of
Default specified in Article X shall have occurred and be continuing; and
---------
46
(e) immediately after giving effect to:
(i) a Revolving Loan, the aggregate principal balance of all
outstanding Revolving Loans for each Lender shall not exceed such
Lender's Revolving Credit Commitment;
(ii) a Letter of Credit or renewal thereof, the aggregate
principal balance of all outstanding Participations in Letters of
Credit and Reimbursement Obligations (or in the case of the Issuing
Bank, its remaining interest after deduction of all Participations in
Letters of Credit and Reimbursement Obligations of other Lenders) for
each Lender and in the aggregate shall not exceed, respectively, (X)
such Lender's Letter of Credit Commitment or (Y) the Total Letter of
Credit Commitment;
(iii) a Swing Line Loan, the Swing Line Outstandings shall not
exceed $10,000,000; and
(iv) a Revolving Loan, Swing Line Loan or a Letter of Credit or
renewal thereof, the Outstandings shall not exceed the Total Revolving
Credit Commitment.
47
ARTICLE VII
Representations and Warranties
------------------------------
The Borrower represents and warrants with respect to itself and to its
Subsidiaries (which representations and warranties shall survive the delivery of
the documents mentioned herein and the making of Loans), that:
7.1. Organization and Authority.
--------------------------
(a) The Borrower and each Subsidiary is a corporation or partnership
duly organized and validly existing under the laws of the jurisdiction of
its formation;
(b) The Borrower and each Subsidiary (x) has the requisite power and
authority to own its properties and assets and to carry on its business as
now being conducted and as contemplated in the Loan Documents, and (y) is
qualified to do business in every jurisdiction in which failure so to
qualify would have a Material Adverse Effect;
(c) The Borrower has the power and authority to execute, deliver and
perform this Agreement and the Notes, and to borrow hereunder, and to
execute, deliver and perform each of the other Loan Documents to which it
is a party;
(d) Each of the Guarantors has the power and authority to execute,
deliver and perform the Facility Guaranty and each of the other Loan
Documents to which it is a party; and
(e) When executed and delivered, each of the Loan Documents to which
any Loan Party is a party will be the legal, valid and binding obligation
or agreement of such Loan Party, enforceable against such Loan Party in
accordance with its terms, subject to the effect of any applicable
bankruptcy, moratorium, insolvency, reorganization or other similar law
affecting the enforceability of creditors' rights generally and to the
effect of general principles of equity (whether considered in a proceeding
at law or in equity);
7.2. Loan Documents. The execution, delivery and performance by the
--------------
each Loan Party of each of the Loan Documents to which it is a party:
(a) have been duly authorized by all requisite corporate action
(including any required shareholder or partner approval) of such Loan Party
required for the lawful execution, delivery and performance thereof;
(b) do not violate any provisions of (i) applicable law, rule or
regulation, (ii) any judgment, writ, order, determination, decree or
arbitral award of any Governmental Authority or arbitral authority binding
on such Loan Party or its properties, or (iii) the charter documents,
partnership agreement or bylaws of such Loan Party;
48
(c) does not and will not be in conflict with, result in a breach of
or constitute an event of default, or an event which, with notice or lapse
of time or both, would constitute an event of default, under any contract,
indenture, agreement or other instrument or document to which such Loan
Party is a party, or by which the properties or assets of such Loan Party
are bound; and
(d) does not and will not result in the creation or imposition of any
Lien upon any of the properties or assets of such Loan Party or any
Subsidiary;
7.3. Solvency. Each Loan Party is Solvent after giving effect to the
--------
transactions contemplated by the Loan Documents;
7.4. Subsidiaries and Stockholders. The Borrower has no Subsidiaries
-----------------------------
other than those Persons listed as Subsidiaries in Schedule 7.4 and additional
------------
Subsidiaries created or acquired after the Closing Date in compliance with
Section 8.19; Schedule 7.4 states as of the date hereof the organizational form
------------ ------------
of each entity, the authorized and issued capitalization of each Subsidiary
listed thereon, the number of shares or other equity interests of each class of
capital stock or interest issued and outstanding of each such Subsidiary and the
number and/or percentage of outstanding shares or other equity interest
(including options, warrants and other rights to acquire any interest) of each
such class of capital stock or other equity interest owned by Borrower or by any
such Subsidiary; the outstanding shares or other equity interests of each such
Subsidiary have been duly authorized and validly issued and are fully paid and
nonassessable; and Borrower and each such Subsidiary owns beneficially and of
record all the shares and other interests it is listed as owning in Schedule
--------
7.4, free and clear of any Lien;
---
7.5. Ownership Interests. Borrower owns no interest in any Person
-------------------
other than the Persons listed in Schedule 7.4, equity investments in Persons not
------------
constituting Subsidiaries permitted under Section 9.7 and additional
-----------
Subsidiaries created or acquired after the Closing Date in compliance with
Section 8.19;
------------
7.6. Financial Condition.
-------------------
(a) The Borrower has heretofore furnished to each Lender audited
consolidated balance sheets of the Borrower and its Subsidiaries as at
October 31, 1994, 1995, and 1996 and the notes thereto and the related
consolidated statements of earnings, stockholders' equity and cash flows
for the Fiscal Years then ended as examined and certified by KPMG Peat
Marwick, L.L.P. and unaudited consolidated interim financial statements of
the Borrower and its Subsidiaries consisting of a consolidated balance
sheet and related consolidated statements of earnings, stockholders' equity
and cash flows, in each case without notes, for and as of the end of the
three month period ending January 31, 1997. Except as set forth therein,
such financial statements (including the notes thereto) present fairly the
financial condition of the Borrower and its Subsidiaries as of the end of
such Fiscal Years and three month period and results of their operations
and the changes in its stockholders' equity for the Fiscal Years and
interim period then ended, all in conformity with GAAP applied on a
Consistent Basis, subject however, in the case of unaudited interim
statements to year end audit adjustments;
49
(b) since January 31, 1997 there has been no material adverse change
in the condition, financial or otherwise, of the Borrower or any of its
Subsidiaries or in the businesses, properties, performance, prospects or
operations of the Borrower or its Subsidiaries, nor have such businesses or
properties been materially adversely affected as a result of any fire,
explosion, earthquake, accident, strike, lockout, combination of workers,
flood, embargo or act of God; and
(c) except as set forth in the financial statements referred to in
Section 7.6(a) or in Schedule 7.6 or permitted by Section 9.5, neither
-------------- ------------ -----------
Borrower nor any Subsidiary has incurred, other than in the ordinary course
of business, any material Indebtedness, Contingent Obligation or other
commitment or liability which remains outstanding or unsatisfied;
7.7. Title to Properties. The Borrower and each of its Subsidiaries
-------------------
has good and marketable title to all its real and personal properties, subject
to no transfer restrictions or Liens of any kind, except for Permitted Liens;
7.8. Taxes. The Borrower and each of its Subsidiaries has filed or
-----
caused to be filed all federal, state and local tax returns which are required
to be filed by it and, except for taxes and assessments being contested in good
faith by appropriate proceedings diligently conducted and against which reserves
reflected in the financial statements described in Section 6.6(a) and
--------------
satisfactory to the Borrower's independent certified public accountants have
been established, have paid or caused to be paid all taxes as shown on said
returns or on any assessment received by it, to the extent that such taxes have
become due;
7.9. Other Agreements. No Loan Party nor any Subsidiary is
----------------
(a) a party to or subject to any judgment, order, decree, agreement,
lease or instrument, or subject to other restrictions, which individually
or in the aggregate could reasonably be expected to have a Material Adverse
Effect; or
(b) in default in the performance, observance or fulfillment of any of
the obligations, covenants or conditions contained in any agreement or
instrument to which the Borrower or any Subsidiary is a party, which
default has, or if not remedied within any applicable grace period could
reasonably be likely to have, a Material Adverse Effect;
7.10. Litigation. Except as set forth in Schedule 7.10, there is no
---------- -------------
action, suit, investigation or proceeding at law or in equity or by or before
any governmental instrumentality or agency or arbitral body pending which could
reasonably be likely to have a Material Adverse Effect, or, to the knowledge of
the Borrower, threatened by or against the Borrower or any Subsidiary or
affecting the Borrower or any Subsidiary or any properties or rights of the
Borrower or any Subsidiary, which could reasonably be likely to have a Material
Adverse Effect;
7.11. Margin Stock. The proceeds of the borrowings made hereunder will
------------
be used by the Borrower only for the purposes expressly authorized herein. None
of such proceeds will be used, directly or indirectly, for the purpose of
purchasing or carrying any margin stock or for the purpose
50
of reducing or retiring any Indebtedness which was originally incurred to
purchase or carry margin stock or for any other purpose which might constitute
any of the Loans under this Agreement a "purpose credit" within the meaning of
said Regulation U or Regulation X (12 C.F.R. Part 224) of the Board. Neither
the Borrower nor any agent acting in its behalf has taken or will take any
action which might cause this Agreement or any of the documents or instruments
delivered pursuant hereto to violate any regulation of the Board or to violate
the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933,
as amended, or any state securities laws, in each case as in effect on the date
hereof;
7.12. Investment Company. No Loan Party is an "investment company," or
------------------
an "affiliated person" of, or "promoter" or "principal underwriter" for, an
"investment company", as such terms are defined in the Investment Company Act of
1940, as amended (15 U.S.C. (S) 80a-1, et seq.). The application of the
proceeds of the Loans and repayment thereof by the Borrower and the performance
by the Loan Parties of the transactions contemplated by the Loan Documents will
not violate any provision of said Act, or any rule, regulation or order issued
by the Securities and Exchange Commission thereunder, in each case as in effect
on the date hereof;
7.13. Patents, Etc. The Borrower and each Subsidiary owns or has the
------------
right to use, under valid license agreements or otherwise, all material patents,
licenses, franchises, trademarks, trademark rights, trade names, trade name
rights, trade secrets and copyrights necessary to or used in the conduct of its
businesses as now conducted and as contemplated by the Loan Documents, without
known conflict with any patent, license, franchise, trademark, trade secret,
trade name, copyright, other proprietary right of any other Person;
7.14. No Untrue Statement. Neither (a) this Agreement nor any other
-------------------
Loan Document or certificate or document executed and delivered by or on behalf
of the Borrower or any Subsidiary in accordance with or pursuant to any Loan
Document nor (b) any statement, representation, or warranty provided to the
Agent in connection with the negotiation or preparation of the Loan Documents
contains any misrepresentation or untrue statement of material fact or omits to
state a material fact necessary, in light of the circumstance under which it was
made, in order to make any such warranty, representation or statement contained
therein not misleading;
7.15. No Consents, Etc. Neither the respective businesses or
----------------
properties of the Loan Parties or any Subsidiary, nor any relationship among
the Loan Parties or any Subsidiary and any other Person, nor any circumstance in
connection with the execution, delivery and performance of the Loan Documents
and the transactions contemplated thereby, is such as to require a consent,
approval or authorization of, or filing, registration or qualification with, any
Governmental Authority or any other Person on the part of any Loan Party or any
Subsidiary as a condition to the execution, delivery and performance of, or
consummation of the transactions contemplated by the Loan Documents, which, if
not obtained or effected, would be reasonably likely to have a Material Adverse
Effect, or if so, such consent, approval, authorization, filing, registration or
qualification has been duly obtained or effected, as the case may be;
51
7.16. Employee Benefit Plans.
----------------------
(a) The Borrower and each ERISA Affiliate is in material compliance in
form and operation with all applicable provisions of ERISA and the
regulations and published interpretations thereunder and in compliance with
all Foreign Benefit Laws with respect to all Employee Benefit Plans except
for any required amendments for which the remedial amendment period as
defined in Section 401(b) of the Code has not yet expired. Each Employee
Benefit Plan that is intended to be qualified under Section 401(a) of the
Code has been determined by the Internal Revenue Service to be so
qualified, and each trust related to such plan has been determined to be
exempt under Section 501(a) of the Code. No material liability has been
incurred by the Borrower or any ERISA Affiliate which remains unsatisfied
for any taxes or penalties with respect to any Employee Benefit Plan or any
Multiemployer Plan;
(b) Neither the Borrower nor any ERISA Affiliate has (i) to the best
of the Borrower's knowledge, after due inquiry, engaged in a nonexempt
prohibited transaction described in Section 4975 of the Code or Section 406
of ERISA affecting any of the Employee Benefit Plans or the trusts created
thereunder which could subject any such Employee Benefit Plan or trust to a
material tax or penalty on prohibited transactions imposed under Internal
Revenue Code Section 4975 or ERISA, (ii) incurred any accumulated funding
deficiency with respect to any Employee Benefit Plan, whether or not
waived, or any other liability to the PBGC which remains outstanding other
than the payment of premiums and there are no premium payments which are
due and unpaid, (iii) failed to make a required contribution or payment to
a Multiemployer Plan, or (iv) failed to make a required installment or
other required payment under Section 412 of the Code, Section 302 of ERISA
or the terms of such Employee Benefit Plan;
(c) No Termination Event has occurred or is reasonably expected to
occur with respect to any Pension Plan or Multiemployer Plan, and neither
the Borrower nor any ERISA Affiliate has incurred any unpaid withdrawal
liability with respect to any Multiemployer Plan;
(d) The present value of all vested accrued benefits under each
Employee Benefit Plan which is subject to Title IV of ERISA, did not, as of
the most recent valuation date for each such plan, exceed the then current
value of the assets of such Employee Benefit Plan allocable to such
benefits;
(e) The consummation of the Loans and the issuance of the Letters of
Credit provided for herein will not involve any prohibited transaction
under ERISA which is not subject to a statutory or administrative
exemption; and
(f) No material proceeding, claim, lawsuit and/or investigation exists
or, to the best knowledge of the Borrower after due inquiry, is threatened
concerning or involving any Employee Benefit Plan;
52
7.17. No Default. As of the date hereof, there does not exist any
----------
Default or Event of Default hereunder;
7.18. Hazardous Materials. The Borrower and each Subsidiary is in
-------------------
compliance with all applicable Environmental Laws in all material respects.
Neither the Borrower nor any Subsidiary has been notified of any action, suit,
proceeding or investigation which, and neither the Borrower nor any Subsidiary
is aware of any facts which, (i) calls into question, or could reasonably be
expected to call into question, compliance by the Borrower or any Subsidiary
with any Environmental Laws, (ii) which seeks, or could reasonably be expected
to form the basis of a meritorious proceeding, to suspend, revoke or terminate
any license, permit or approval necessary for the generation, handling, storage,
treatment or disposal of any Hazardous Material, or (iii) seeks to cause, or
could reasonably be expected to form the basis of a meritorious proceeding to
cause, any property of the Borrower or any Subsidiary to be subject to any
restrictions on ownership, use, occupancy or transferability under any
Environmental Law;
7.19. Employment Matters. (a) Except as set forth in Schedule 7.19,
------------------ ------------------------------------
none of the employees of the Borrower or any Subsidiary is subject to any
collective bargaining agreement and there are no strikes, work stoppages,
election or decertification petitions or proceedings, unfair labor charges,
equal opportunity proceedings, or other material labor/employee related
controversies or proceedings pending or, to the best knowledge of the Borrower,
threatened against the Borrower or any Subsidiary or between the Borrower or any
Subsidiary and any of its employees, other than employee grievances arising in
the ordinary course of business which could not reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect; and
(b) Except to the extent a failure to maintain compliance would not have a
Material Adverse Effect, the Borrower and each Subsidiary is in compliance in
all respects with all applicable laws, rules and regulations pertaining to labor
or employment matters, including without limitation those pertaining to wages,
hours, occupational safety and taxation and there is neither pending or
threatened any litigation, administrative proceeding nor, to the knowledge of
the Borrower, any investigation, in respect of such matters which, if decided
adversely, could reasonably be likely, individually or in the aggregate, to have
a Material Adverse Effect; and
7.20. RICO. Neither the Borrower nor any Subsidiary is engaged in or
----
has engaged in any course of conduct that could subject any of their respective
properties to any Lien, seizure or other forfeiture under any criminal law,
racketeer influenced and corrupt organizations law, civil or criminal, or other
similar laws.
53
ARTICLE VIII
Affirmative Covenants
---------------------
Until the Facility Termination Date, unless the Required Lenders shall
otherwise consent in writing, the Borrower will, and where applicable will cause
each Subsidiary to:
8.1. Financial Reports, Etc. (a) As soon as practical and in any
----------------------
event within 90 days after the end of each Fiscal Year of the Borrower, deliver
or cause to be delivered to the Agent and each Lender (i) the consolidated
balance sheet of the Borrower and its Subsidiaries as at the end of such Fiscal
Year, and the notes thereto, and the related consolidated statements of
earnings, stockholders' equity and cash flows, and the respective notes thereto,
for such Fiscal Year, setting forth comparative financial statements for the
preceding Fiscal Year, all prepared in accordance with GAAP applied on a
Consistent Basis and containing, with respect to the consolidated financial
statements, opinions of KPMG Peat Marwick, L.L.P. or other such independent
certified public accountants selected by the Borrower and approved by the Agent,
which are unqualified as to the scope of the audit performed and as to the
"going concern" status of the Borrower and its Subsidiaries and without any
exception not acceptable to the Lenders, and (ii) a certificate of an Authorized
Representative demonstrating compliance with Sections 9.1(a) through 9.1(c) and
--------------- ------
9.3, which certificate shall be in the form of Exhibit H;
--- ---------
(b) as soon as practical and in any event within 45 days after the end of
each fiscal quarter (except the last fiscal quarter of the Fiscal Year), deliver
to the Agent and each Lender (i) consolidated balance sheets of the Borrower and
its Subsidiaries as at the end of such fiscal quarter, and the related
consolidated statements of earnings, stockholders' equity and cash flows for
such fiscal quarter and for the period from the beginning of the then current
Fiscal Year through the end of such reporting period, and accompanied by a
certificate of an Authorized Representative to the effect that such financial
statements present fairly the financial position of the Borrower and its
Subsidiaries as of the end of such fiscal period and the results of their
operations and the changes in their financial position for such fiscal period,
in conformity with the standards set forth in Section 7.6(a) with respect to
--------------
interim financial statements, and (ii) a certificate of an Authorized
Representative containing computations for such quarter comparable to that
required pursuant to Section 8.1(a)(ii);
------------------
(c) together with each delivery of the financial statements required by
Section 8.1(a)(i), deliver to the Agent and each Lender a letter from the
-----------------
Borrower's accountants specified in Section 8.1(a)(i) stating that in performing
-----------------
the audit necessary to render an opinion on the financial statements delivered
under Section 8.1(a)(i), they obtained no knowledge of any Default or Event of
-----------------
Default by the Borrower in the fulfillment of the terms and provisions of this
Agreement insofar as they relate to financial matters (which at the date of such
statement remains uncured); or if the accountants have obtained knowledge of
such Default or Event of Default, a statement specifying the nature and period
of existence thereof;
(d) promptly upon their becoming available to the Borrower, the Borrower
shall deliver to the Agent and each Lender a copy of (i) all regular or special
reports or effective registration
54
statements which Borrower or any Subsidiary shall file with the Securities and
Exchange Commission (or any successor thereto) or any securities exchange, (ii)
any proxy statement distributed by the Borrower or any Subsidiary to its
shareholders, bondholders or the financial community in general, and (iii) any
management letter or other report submitted to the Borrower or any Subsidiary by
independent accountants in connection with any annual, interim or special audit
of the Borrower or any Subsidiary; and
(e) promptly, from time to time, deliver or cause to be delivered to the
Agent and each Lender such other information regarding Borrower's and any
Subsidiary's operations, business affairs and financial condition as the Agent
or such Lender may reasonably request;
The Agent and the Lenders are hereby authorized to deliver a copy of any
such financial or other information delivered hereunder to the Lenders (or any
affiliate of any Lender) or to the Agent, to any Governmental Authority having
jurisdiction over the Agent or any of the Lenders pursuant to any written
request therefor or in the ordinary course of examination of loan files, or to
any other Person who shall acquire or consider the assignment of, or acquisition
of any participation interest in, any Obligation permitted by this Agreement;
8.2. Maintain Properties. Maintain all properties necessary to its
-------------------
operations in good working order and condition, make all needed repairs,
replacements and renewals to such properties, and maintain free from Liens all
trademarks, trade names, patents, copyrights, trade secrets, know-how, and other
intellectual property and proprietary information (or adequate licenses
thereto), in each case as are reasonably necessary to conduct its business as
currently conducted or as contemplated hereby, all in accordance with customary
and prudent business practices;
8.3. Existence, Qualification, Etc. Except as otherwise expressly
-----------------------------
permitted under Section 9.8, do or cause to be done all things necessary to
-----------
preserve and keep in full force and effect its existence and all material rights
and franchises, and maintain its license or qualification to do business as a
foreign corporation and good standing in each jurisdiction in which its
ownership or lease of property or the nature of its business makes such license
or qualification necessary except where the failure to do so would not have a
Material Adverse Effect;
8.4. Regulations and Taxes. Comply in all material respects with or
---------------------
contest in good faith all statutes and governmental regulations and pay all
taxes, assessments, governmental charges, claims for labor, supplies, rent and
any other obligation which, if unpaid, would become a Lien against any of its
properties except liabilities being contested in good faith by appropriate
proceedings diligently conducted and against which adequate reserves acceptable
to the Borrower's independent certified public accountants have been established
unless and until any Lien resulting therefrom attaches to any of its property
and becomes enforceable against its creditors;
8.5. Insurance. (a) Keep all of its insurable properties adequately
---------
insured at all times with responsible insurance carriers against loss or damage
by fire and other hazards to the extent and in the manner as are customarily
insured against by similar businesses owning such properties similarly situated,
(b) maintain general public liability insurance at all times with responsible
insurance carriers against liability on account of damage to persons and
property and (c) maintain insurance under all
55
applicable workers' compensation laws (or in the alternative, maintain required
reserves if self-insured for workers' compensation purposes) and against loss by
reason by business interruption such policies of insurance to have such limits,
deductibles, exclusions, co-insurance and other provisions providing no less
coverages than those customarily insured against by similar businesses owning
similar properties;
8.6. True Books. Keep true books of record and account in which full,
----------
true and correct entries will be made of all of its dealings and transactions,
and set up on its books such reserves as may be required by GAAP with respect to
doubtful accounts and all taxes, assessments, charges, levies and claims and
with respect to its business in general, and include such reserves in interim as
well as year-end financial statements;
8.7. Right of Inspection. Permit any Person designated by any Lender
-------------------
or the Agent to visit and inspect any of the properties, corporate books and
financial reports of the Borrower or any Subsidiary and to discuss its affairs,
finances and accounts with its principal officers and independent certified
public accountants, all at reasonable times, at reasonable intervals and with
reasonable prior notice;
8.8. Observe all Laws. Conform to and duly observe in all material
----------------
respects all laws, rules and regulations and all other valid requirements of any
Governmental Authority with respect to the conduct of its business;
8.9. Governmental Licenses. Obtain and maintain all licenses,
---------------------
permits, certifications and approvals of all applicable Governmental Authorities
as are required for the conduct of its business as currently conducted and as
contemplated by the Loan Documents;
8.10. Covenants Extending to Other Persons. Cause each of its
------------------------------------
Subsidiaries to do with respect to itself, its business and its assets, each of
the things required of the Borrower in Sections 8.2 through 8.9, and 8.18
------------ --- ----
inclusive;
8.11. Officer's Knowledge of Default. Upon any officer of the Borrower
------------------------------
obtaining knowledge of any Default or Event of Default hereunder or under any
other obligation of the Borrower or any Subsidiary to any Lender, or any event,
development or occurrence which could reasonably be expected to have a Material
Adverse Effect, cause such officer or an Authorized Representative to promptly
notify the Agent of the nature thereof, the period of existence thereof, and
what action the Borrower or such Subsidiary proposes to take with respect
thereto;
8.12. Suits or Other Proceedings. Upon any officer of the Borrower
--------------------------
obtaining knowledge of any litigation or other proceedings being instituted
against the Borrower or any Subsidiary or any attachment, levy, execution or
other process being instituted against any assets of the Borrower or any
Subsidiary making a claim or claims in an aggregate amount greater than
$[1,000,000] not otherwise covered by insurance, promptly deliver to the Agent
written notice thereof stating the nature and status of such litigation,
dispute, proceeding, levy, execution or other process;
56
8.13. Notice of Discharge of Hazardous Material or Environmental
----------------------------------------------------------
Complaint. Promptly provide to the Agent true, accurate and complete copies of
---------
any and all notices, complaints, orders, directives, claims, or citations
received by the Borrower or any Subsidiary relating to any (a) violation or
alleged violation by the Borrower or any Subsidiary of any applicable
Environmental Law; (b) release or threatened release by the Borrower or any
Subsidiary, or at any facility or property owned or leased or operated by the
Borrower or any Subsidiary, of any Hazardous Material, except where occurring
legally; or (c) liability or alleged liability of the Borrower or any Subsidiary
for the costs of cleaning up, removing, remediating or responding to a release
of Hazardous Materials;
8.14. Environmental Compliance. If the Borrower or any Subsidiary
------------------------
shall receive any letter, notice, complaint, order, directive, claim or citation
alleging that the Borrower or and Subsidiary has violated any Environmental Law
or is liable for the costs of cleaning up, removing, remediating or responding
to a release of Hazardous Materials, the Borrower shall, within the time period
permitted by the applicable Environmental Law or the Governmental Authority
responsible for enforcing such Environmental Law, remove or remedy, or cause the
applicable Subsidiary to remove or remedy, such violation or release or satisfy
such liability;
8.15. Indemnification. Without limiting the generality of Section
--------------- -------
12.9, the Borrower hereby agrees to indemnify and hold the Agent, the Lenders
and NCMI, and their respective officers, directors, employees and agents,
harmless from and against any and all claims, losses, penalties, liabilities,
damages and expenses (including assessment and cleanup costs and reasonable
attorneys' fees and disbursements) arising directly or indirectly from, out of
or by reason of (a) the violation of any Environmental Law by the Borrower or
any Subsidiary or with respect to any property owned, operated or leased by the
Borrower or any Subsidiary or (b) the handling, storage, treatment, emission or
disposal of any Hazardous Materials by or on behalf of the Borrower or any
Subsidiary or on or with respect to property owned or leased or operated by the
Borrower or any Subsidiary. The provisions of this Section 8.15 shall survive
------------
the Facility Termination Date and expiration or termination of this Agreement;
8.16. Further Assurances. At the Borrower's cost and expense, upon
------------------
request of the Agent, duly execute and deliver or cause to be duly executed and
delivered, to the Agent such further instruments, documents, certificates,
financing and continuation statements, and do and cause to be done such further
acts that may be reasonably necessary or advisable in the reasonable opinion of
the Agent to carry out more effectively the provisions and purposes of this
Agreement and the other Loan Documents;
8.17. Employee Benefit Plans.
----------------------
(a) With reasonable promptness, and in any event within thirty (30) days
thereof, give notice to the Agent of (a) the establishment of any new Pension
Plan (which notice shall include a copy of such plan), (b) the commencement of
material contributions to any Employee Benefit Plan to which the Borrower or any
of its ERISA Affiliates was not previously contributing, (c) any material
increase in the benefits of any existing Employee Benefit Plan, (d) each funding
waiver request filed with respect to any Employee Benefit Plan and all
communications received or sent by the Borrower or any ERISA Affiliate with
respect to such request and (e) the failure of the Borrower
57
or any ERISA Affiliate to make a required installment or payment under Section
302 of ERISA or Section 412 of the Code by the due date;
(b) Promptly and in any event within fifteen (15) days of becoming aware of
the occurrence or forthcoming occurrence of any (a) Termination Event or (b)
nonexempt "prohibited transaction," as such term is defined in Section 406 of
ERISA or Section 4975 of the Code, in connection with any Pension Plan or any
trust created thereunder, deliver to the Agent a notice specifying the nature
thereof, what action the Borrower or any ERISA Affiliate has taken, is taking or
proposes to take with respect thereto and, when known, any action taken or
threatened by the Internal Revenue Service, the Department of Labor or the PBGC
with respect thereto; and
(c) With reasonable promptness but in any event within fifteen (15) days
for purposes of clauses (a), (b) and (c), deliver to the Agent copies of (a) any
unfavorable determination letter from the Internal Revenue Service regarding the
qualification of an Employee Benefit Plan under Section 401(a) of the Code, (b)
all notices received by the Borrower or any ERISA Affiliate of the PBGC's intent
to terminate any Pension Plan or to have a trustee appointed to administer any
Pension Plan, (c) each Schedule B (Actuarial Information) to the annual report
(Form 5500 Series) filed by the Borrower or any ERISA Affiliate with the
Internal Revenue Service with respect to each Pension Plan and (d) all notices
received by the Borrower or any ERISA Affiliate from a Multiemployer Plan
sponsor concerning the imposition or amount of withdrawal liability pursuant to
Section 4202 of ERISA. The Borrower will notify the Agent in writing within
five (5) Business Days of the Borrower or any ERISA Affiliate obtaining
knowledge or reason to know that the Borrower or any ERISA Affiliate has filed
or intends to file a notice of intent to terminate any Pension Plan under a
distress termination within the meaning of Section 4041(c) of ERISA;
8.18. Continued Operations. Continue at all times to conduct its
--------------------
business and engage principally in the same line or lines of business
substantially as heretofore conducted;
8.19. New Subsidiaries. Not later than thirty (30) days following the
----------------
acquisition or creation of any domestic Subsidiary or Material Foreign
Subsidiary, or upon any previously existing foreign Subsidiary becoming a
Material Foreign Subsidiary, cause to be delivered to the Agent for the benefit
of the Lenders each of the following:
(a) a Facility Guaranty executed by such domestic Subsidiary
substantially in the form of Exhibit I;
---------
(b) an opinion of counsel to the Subsidiary dated as of the date of
delivery of the Facility Guaranty provided for in this Section 8.19 and
------------
addressed to the Agent and the Lenders, in form and substance reasonably
acceptable to the Agent (which opinion may include assumptions and
qualifications of similar effect to those contained in the opinions of
counsel delivered pursuant to Section 6.1(a)), to the effect that:
--------------
(i) such Subsidiary is duly organized, validly existing and in
good standing in the jurisdiction of its formation, has the requisite
power and authority to own its properties and conduct its business as
then owned and then conducted and proposed
58
to be conducted, and is duly qualified to transact business and is in
good standing as a foreign corporation or partnership in each other
jurisdiction in which the character of the properties owned or leased,
or the business carried on by it, requires such qualification and the
failure to be so qualified would reasonably be likely to result in a
Material Adverse Effect;
(ii) the execution, delivery and performance of the Facility
Guaranty described in this Section 8.19 to which such Subsidiary is a
------------
signatory have been duly authorized by all requisite corporate or
partnership action (including any required shareholder or partner
approval), such agreement has been duly executed and delivered and
constitutes the valid and binding agreement of such Subsidiary,
enforceable against such Subsidiary in accordance with its terms,
subject to the effect of any applicable bankruptcy, moratorium,
insolvency, reorganization or other similar law affecting the
enforceability of creditors' rights generally and to the effect of
general principles of equity (whether considered in a proceeding at
law or in equity);
(c) current copies of the charter documents, including partnership
agreements and certificate of limited partnership, if applicable, and
bylaws of such Subsidiary, minutes of duly called and conducted meetings
(or duly effected consent actions) of the Board of Directors, partners, or
appropriate committees thereof (and, if required by such charter documents,
bylaws or by applicable law, of the shareholders) of such Subsidiary
authorizing the actions and the execution and delivery of documents
described in this Section 8.19;
-------------
(d) (i) a Stock Pledge Agreement substantially similar in form and
content to that executed and delivered by the Borrower on the Closing Date,
with appropriate revisions as to the identity of the pledgor and securing
the Obligations of such pledgor under its Facility Guaranty, (ii) in the
case of a domestic Subsidiary all of the issued and outstanding capital
stock, and in the case of a Material Foreign Subsidiary 65% of the issued
and outstanding capital stock, together with duly executed stock powers or
powers of assignment in blank affixed thereto, and in the case of a
Material Foreign Subsidiary, 65% of the issued and outstanding capital
stock(iii) if such Subsidiary is a partnership that has not issued
certificates evidencing ownership of such partnership, the certificate of
the Registrar of such partnership with respect to the registration of the
Lien on Partnership Interests, which certificate shall be in the form of
Exhibit L.
---------
8.20. Delivery of Share Charges. Cause to be delivered to the Agent
-------------------------
for the benefit of the Lenders not later than June 30, 1997 (i) Stock Pledge
Agreements covering 65% of the capital stock of Amot Investments Limited and ISL
Holdings, S.A. and the remaining unpledged interest in Molecular Imaging
Corporation, (ii) appropriate stock transfer forms executed in blank, (iii) a
certified copy of the Memorandum and Articles of Association of Amot Investments
Limited and ISL Holdings, S.A. and (iv) director and shareholder resolutions, if
required, approving the pledge of such shares.
59
ARTICLE IX
Negative Covenants
------------------
Until the Obligations have been paid and satisfied in full, no Letters of
Credit remain outstanding and this Agreement has been terminated in accordance
with the terms hereof, unless the Required Lenders shall otherwise consent in
writing, the Borrower will not, nor will it permit any Subsidiary to:
9.1. Financial Covenants.
-------------------
(a) Consolidated Net Worth. Permit Consolidated Net Worth to be less
----------------------
than (i) $127,300,000 at the Closing Date and (ii) as at the last day of
each succeeding fiscal quarter of the Borrower and until (but excluding)
the last day of the next following fiscal quarter of the Borrower, the sum
of (A) the amount of Consolidated Net Worth required to be maintained
pursuant to this Section 9.1(a) as at the end of the immediately preceding
fiscal quarter, plus (B) 50% of Consolidated Net Income (with no reduction
for net losses during any period) for the fiscal quarter of the Borrower
ending on such day (including within "Consolidated Net Income" certain
items otherwise excluded, as provided for in the definition of
"Consolidated Net Income"), plus (c) 100% of the aggregate amount of all
increases in the stated capital and additional paid-in capital accounts of
the Borrower resulting from the issuance of equity securities or other
capital investments.
(b) Consolidated Leverage Ratio. Permit at any time during the
---------------------------
respective periods set forth below the Consolidated Leverage Ratio to be
more than that set forth opposite each such period:
Four Quarter Period Ending Consolidated Leverage Ratio Covenant
------------------------------------------------------------------
7/31/97 3.50:1.00
------------------------------------------------------------------
10/31/97 3.50:1.00
------------------------------------------------------------------
1/31/98 3.25:1.00
------------------------------------------------------------------
4/30/98 3.25:1.00
------------------------------------------------------------------
7/31/98 3.25:1.00
------------------------------------------------------------------
10/31/98 3.25:1.00
------------------------------------------------------------------
1/31/99 and thereafter 3.00:1.00
------------------------------------------------------------------
(c) Consolidated Interest Coverage Ratio. Permit the Consolidated
------------------------------------
Interest Coverage Ratio as of the end of any Four-Quarter Period to be less
than 3.00 to 1.00.
60
9.2. Acquisitions. Consummate any Acquisition, or take any action to
------------
solicit the tender of securities or proxies in respect thereof in order to
effect any Acquisition, unless (i) the Person to be (or whose assets are to be)
acquired does not oppose such Acquisition and the line or lines of business of
the Person to be acquired are substantially the same as one or more line or
lines of business conducted by the Borrower and its Subsidiaries, (ii) no
Default or Event of Default shall have occurred and be continuing either
immediately prior to or immediately after giving effect to such Acquisition,
(iii) in the case of the Acquisition of a foreign Person, the Cost of
Acquisition for Persons organized or existing under the laws of a jurisdiction
other than the United States or a state or territory thereof shall not exceed
$50,000,000 in the aggregate for any Fiscal Year, (iv) if the Cost of
Acquisition exceeds $25,000,000, the Borrower shall have furnished to the Agent
(A) pro forma historical financial statements as of the end of the most recently
completed Fiscal Year of the Borrower and most recent interim fiscal quarter, if
applicable, giving effect to such Acquisition and (B) a certificate in the form
of Exhibit H prepared on a historical pro forma basis giving effect to such
Acquisition, which certificate shall demonstrate that no Default or Event of
Default would exist immediately after giving effect thereto, and (v) to the
extent required under Section 8.19, the Person acquired shall execute a Facility
------------
Guaranty substantially in the form of Exhibit I within the period set forth in
---------
Section 8.19 and comply with the provisions of such Section;
------------
9.3. Capital Expenditures. Make or become committed to make Capital
--------------------
Expenditures, which exceed $15,000,000 in the aggregate during the Fiscal Year
ending October 31, 1997 and $20,000,000 in any Fiscal Year of the Borrower
thereafter (on a noncumulative basis, with the effect that amounts not expended
in any Fiscal Year may not be carried forward to a subsequent period);
9.4. Liens. Incur, create or permit to exist any Lien, charge or
-----
other encumbrance of any nature whatsoever with respect to any property or
assets now owned or hereafter acquired by the Borrower or any Subsidiary, other
than the following (collectively, the "Permitted Liens"):
(a) Liens existing as of the date hereof and as set forth in Schedule
--------
7.7;
---
(b) Liens imposed by law for taxes, assessments or charges of any
Governmental Authority for claims not yet due or which are being contested
in good faith by appropriate proceedings diligently conducted and with
respect to which adequate reserves or other appropriate provisions are
being maintained in accordance with GAAP and which Liens are not yet
enforceable against other creditors;
(c) statutory Liens of landlords and Liens of carriers, warehousemen,
mechanics, materialmen and other Liens imposed by law or created in the
ordinary course of business and in existence less than 90 days from the
date of creation thereof for amounts not yet due or which are being
contested in good faith by appropriate proceedings diligently conducted and
with respect to which adequate reserves or other appropriate provisions are
being maintained in accordance with GAAP and which Liens are not yet
enforceable against other creditors;
(d) Liens incurred or deposits made in the ordinary course of business
(including, without limitation, surety bonds and appeal bonds) in
connection with workers' compensation,
61
unemployment insurance and other types of social security benefits or to
secure the performance of tenders, bids, leases, contracts (other than for
the repayment of Indebtedness), statutory obligations and other similar
obligations or arising as a result of progress payments under government
contracts; and
(e) easements (including reciprocal easement agreements and utility
agreements), rights-of-way, covenants, consents, reservations,
encroachments, variations and zoning and other restrictions, charges or
encumbrances (whether or not recorded), which do not interfere materially
with the ordinary conduct of the business of the Borrower or any Subsidiary
and which do not materially detract from the value of the property to which
they attach or materially impair the use thereof to the Borrower or any
Subsidiary;
9.5. Indebtedness. Incur, create, assume or permit to exist any
------------
Indebtedness of the Borrower, howsoever evidenced, except:
(a) Indebtedness existing as of the Closing Date as set forth in
Schedule 7.6; provided, none of the instruments and agreements evidencing
------------ --------
or governing such Indebtedness shall be amended, modified or supplemented
after the Closing Date to change any terms of subordination, repayment or
rights of conversion, put, exchange or other rights from such terms and
rights as in effect on the Closing Date;
(b) Indebtedness owing to the Agent or any Lender in connection with
this Agreement, any Note or other Loan Document;
(c) the endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of business;
(d) Indebtedness arising from Rate Hedging Obligations permitted under
Section 9.15;
------------
(e) unsecured intercompany Indebtedness for loans and advances made by
any Loan Party to any other Loan Party, provided that such intercompany
Indebtedness is evidenced by a promissory note or similar written
instrument acceptable to the Agent which provides that such Indebtedness is
subordinated to obligations, liabilities and undertakings of the holder or
owner thereof under the Loan Documents on terms acceptable to the Agent;
(f) additional Indebtedness for Money Borrowed not otherwise covered
by clauses (a) through (e) above, provided that the aggregate outstanding
principal amount of all such other Indebtedness permitted under this clause
(f) shall in no event exceed (i) in the case of domestic Subsidiaries,
$1,000,000 which Indebtedness shall be unsecured, and (ii) in the case of
foreign Subsidiaries, $10,000,000 (or the Dollar equivalent amount thereof)
at any time;
9.6. Transfer of Assets. Sell, lease, transfer or otherwise dispose
------------------
of any assets of Borrower or any Subsidiary other than (a) dispositions of
inventory in the ordinary course of business,
62
(b) dispositions of property that is substantially worn, damaged, obsolete or,
in the judgment of the Borrower, no longer best used or useful in its business
or that of any Subsidiary, (c) transfers of assets necessary to give effect to
merger or consolidation transactions permitted by Section 9.8, (d) the
-----------
disposition of Eligible Securities in the ordinary course of management of the
investment portfolio of the Borrower and its Subsidiaries, and (e) other
dispositions of assets not to exceed $1,500,000 in any Fiscal Year;
9.7. Investments. Purchase, own, invest in or otherwise acquire,
-----------
directly or indirectly, any stock or other securities, or make or permit to
exist any interest whatsoever in any other Person or permit to exist any loans
or advances to any Person, except that Borrower may maintain investments or
invest in:
(a) any Person acquired in an Acquisition permitted hereunder;
(b) Eligible Securities;
(c) investments existing as of the date hereof and as set forth in
Schedule 7.4;
------------
(d) accounts receivable arising and trade credit granted in the
ordinary course of business and any securities received in satisfaction or
partial satisfaction thereof in connection with accounts of financially
troubled Persons to the extent reasonably necessary in order to prevent or
limit loss; and
(e) investments in Subsidiaries which are Guarantors;
(f) other investments not to exceed $5,000,000 in the aggregate;
(g) loans between Loan Parties described in Section 9.5(e);
--------------
9.8. Merger or Consolidation. (a) Consolidate with or merge into any
-----------------------
other Person, or (b) permit any other Person to merge into it, or (c) liquidate,
wind-up or dissolve or sell, transfer or lease or otherwise dispose of all or a
substantial part of its assets (other than sales permitted under Section 9.6);
-----------
provided, however, (i) any Subsidiary of the Borrower may merge or transfer all
-------- -------
or substantially all of its assets into or consolidate with the Borrower or any
Guarantor, and (ii) any other Person may merge into or consolidate with the
Borrower or any wholly-owned Subsidiary and any Subsidiary may merge into or
consolidate with any other Person in order to consummate an Acquisition
permitted by Section 9.2, provided further, that any resulting or surviving
----------- ----------------
entity shall execute and deliver such agreements and other documents, including
a Facility Guaranty and a Stock Pledge Agreement, if applicable, and take such
other action as the Agent may require to evidence or confirm its express
assumption of the obligations and liabilities of its predecessor entities under
the Loan Documents;
9.9. Restricted Payments. Make any Restricted Payment or apply or set
-------------------
apart any of their assets therefor or agree to do any of the foregoing; except
that (i) the Borrower may make Restricted Payments for any Fiscal Year of up to
50% of Consolidated Net Income for such Fiscal Year and (ii) Subsidiaries may
pay dividends to the Borrower or a Guarantor.
63
9.10. Transactions with Affiliates. Other than transactions permitted
----------------------------
under Sections 9.7 and 9.8, enter into any transaction after the Closing Date,
------------ ---
including, without limitation, the purchase, sale, lease or exchange of
property, real or personal, or the rendering of any service, with any Affiliate
of the Borrower, except (a) that such Affiliate may render services to the
Borrower or its Subsidiaries for compensation at the same rates generally paid
by Persons engaged in the same or similar businesses for the same or similar
services, (b) that the Borrower or any Subsidiary may render services to such
Affiliate for compensation at the same rates generally charged by the Borrower
or such Subsidiary and (c) in either case in the ordinary course of business and
pursuant to the reasonable requirements of the Borrower's (or any Subsidiary's)
business consistent with past practice of the Borrower and its Subsidiaries and
upon fair and reasonable terms no less favorable to the Borrower (or any
Subsidiary) than would be obtained in a comparable arm's-length transaction with
a Person not an Affiliate;
9.11. Compliance with ERISA. With respect to any Pension Plan,
---------------------
Employee Benefit Plan or Multiemployer Plan:
(a) permit the occurrence of any Termination Event which would result
in a material liability on the part of the Borrower or any ERISA Affiliate
to the PBGC; or
(b) permit the present value of all benefit liabilities under all
Pension Plans to exceed by a material amount the current value of the
assets of such Pension Plans allocable to such benefit liabilities; or
(c) permit an accumulated funding deficiency (as defined in Section
302 of ERISA and Section 412 of the Code) that is material with respect to
any Pension Plan, whether or not waived; or
(d) fail to make any contribution or payment, or a series of
contributions or payments, to any Multiemployer Plan which individually or
aggregated is a material amount and that the Borrower or any ERISA
Affiliate may be required to make under any agreement relating to such
Multiemployer Plan, or any law pertaining thereto; or
(e) engage, or permit the Borrower or any ERISA Affiliate to engage,
in any prohibited transaction under Section 406 of ERISA or Sections 4975
of the Code for which a material civil penalty pursuant to Section 502(I)
of ERISA or a material tax pursuant to Section 4975 of the Code may be
imposed; or
(f) permit the establishment of any Employee Benefit Plan providing
post-retirement welfare benefits or establish or amend any Employee Benefit
Plan which establishment or amendment could result in a material liability
to the Borrower or any ERISA Affiliate or a material increase the
obligation of the Borrower or any ERISA Affiliate to a Multiemployer Plan;
or
(g) fail, or permit the Borrower or any ERISA Affiliate to fail, to
establish, maintain and operate each Employee Benefit Plan in compliance in
all material respects with
64
the provisions of ERISA, the Code, all applicable Foreign Benefit Laws and
all other applicable laws and the regulations and interpretations thereof;
For purposes of this Section 9.11 only, an event, occurrence or action is
------------
"material" if it results in a Material Adverse Effect.
9.12. Fiscal Year. Change its Fiscal Year;
-----------
9.13. Dissolution, etc. Wind up, liquidate or dissolve (voluntarily or
----------------
involuntarily) or commence or suffer any proceedings seeking any such winding
up, liquidation or dissolution, except in connection with a merger or
consolidation permitted pursuant to Section 9.8;
-----------
9.14. Change in Control. Cause, suffer or permit to exist or occur any
-----------------
Change of Control;
9.15. Rate Hedging Obligations. Incur any Rate Hedging Obligations or
------------------------
enter into any agreements, arrangements, devices or instruments relating to Rate
Hedging Obligations, except (i) pursuant to Swap Agreements, or (ii) Rate
Hedging Obligations which are for the purpose of providing the Borrower or its
Subsidiaries with protection against fluctuations in interest rates or foreign
currencies and are of a non-speculative nature;
9.16. Negative Pledge Clauses. Enter into or cause, suffer or permit
-----------------------
to exist any agreement with any Person other than the Agent and the Lenders
pursuant to this Agreement or any other Loan Documents which prohibits or limits
the ability of any of the Borrower or any Subsidiary to create, incur, assume or
suffer to exist any Lien upon any of its property, assets or revenues, whether
now owned or hereafter acquired; provided, however, that nothing herein shall
-------- -------
limit the right of the Borrower and its Subsidiaries to agree not to assign
their rights under any contract or agreement to which they are a party.
9.17. Restrictions on Ability of Subsidiaries to Pay Dividends..
--------------------------------------------------------
Except to the extent required by applicable law, the Borrower shall not permit
any Subsidiary to, directly or indirectly, create or otherwise cause or suffer
to exist or become effective any encumbrance or restriction on the ability of
any such Subsidiary to (i) pay any dividends or make any other distributions on
its capital stock or any other interest or (ii) make or repay any loans or
advances to the Borrower or the parent of such Subsidiary.
65
ARTICLE X
Events of Default and Acceleration
----------------------------------
10.1. Events of Default. If any one or more of the following events
-----------------
(herein called "Events of Default") shall occur for any reason whatsoever (and
whether such occurrence shall be voluntary or involuntary or come about or be
effected by operation of law or pursuant to or in compliance with any judgment,
decree or order of any court or any order, rule or regulation of any
Governmental Authority), that is to say:
(a) if default shall be made in the due and punctual payment of the
principal of any Loan, Reimbursement Obligation or other Obligation, when
and as the same shall be due and payable whether pursuant to any provision
of Article II or Article III, at maturity, by acceleration or otherwise and
---------- -----------
; or
(b) if default shall be made in the due and punctual payment of any
amount of interest on any Loan, Reimbursement Obligation or other
Obligation or of any fees or other amounts payable to any of the Lenders or
the Agent on the date on which the same shall be due and payable and such
default shall continue for three (3) or more days; or
(c) if default shall be made in the performance or observance of any
covenant set forth in Section 8.7, 8.11, 8.12, 8.19 or Article IX;
----------- ---- ---- ---- ----------
(d) if a default shall be made in the performance or observance of, or
shall occur under any covenant, agreement or provision contained in this
Agreement or the Notes (other than as described in clauses (a), (b) or (c)
above) and such default shall continue for thirty (30) or more days after
the earlier of receipt of notice of such default by the Authorized
Representative from the Agent or an officer of the Borrower becomes aware
of such default, or if a default shall be made in the performance or
observance of, or shall occur under, any covenant, agreement or provision
contained in any of the other Loan Documents (beyond any applicable grace
period, if any, contained therein) or in any instrument or document
evidencing or creating any obligation, guaranty, or Lien in favor of the
Agent or any of the Lenders or delivered to the Agent or any of the Lenders
in connection with or pursuant to this Agreement or any of the Obligations,
or if any Loan Document ceases to be in full force and effect (other than
by reason of any action by the Agent), or if without the written consent of
the Lenders, this Agreement or any other Loan Document shall be disaffirmed
or shall ter minate, be terminable or be terminated or become void or
unenforceable for any reason whatsoever (other than in accordance with its
terms in the absence of default or by reason of any action by the Lenders
or the Agent); or
(e) if there shall occur (i) a default, which is not waived, in the
payment of any principal, interest, premium or other amount with respect to
any Indebtedness or Rate Hedging Obligation (other than the Loans and other
Obligations) of the Borrower or any Subsidiary in an amount not less than
$1,000,000 in the aggregate outstanding, or (ii) a
66
default, which is not waived, in the performance, observance or fulfillment
of any term or covenant contained in any agreement or instrument under or
pursuant to which any such Indebtedness or Rate Hedging Obligation may have
been issued, created, assumed, guaranteed or secured by the Borrower or any
Subsidiary, or (iii) any other event of default as specified in any
agreement or instrument under or pursuant to which any such Indebtedness or
Rate Hedging Obligation may have been issued, created, assumed, guaranteed
or secured by the Borrower or any Subsidiary, and such default or event of
default shall continue for more than the period of grace, if any, therein
specified, or such default or event of default shall permit the holder of
any such Indebtedness (or any agent or trustee acting on behalf of one or
more holders) to accelerate the maturity thereof; or
(f) if any representation, warranty or other statement of fact
contained in any Loan Document or in any writing, certificate, report or
statement at any time furnished to the Agent or any Lender by or on behalf
of the Borrower pursuant to or in connection with any Loan Document, or
otherwise, shall be false or misleading in any material respect when given;
or
(g) if the Borrower or any Subsidiary shall be unable to pay its debts
generally as they become due; file a petition to take advantage of any
insolvency statute; make an assignment for the benefit of its creditors;
commence a proceeding for the appointment of a receiver, trustee,
liquidator or conservator of itself or of the whole or any substantial part
of its property; file a petition or answer seeking liquidation,
reorganization or arrangement or similar relief under the federal
bankruptcy laws or any other applicable law or statute; or
(h) if a court of competent jurisdiction shall enter an order,
judgment or decree appointing a custodian, receiver, trustee, liquidator or
conservator of the Borrower or any Subsidiary or of the whole or any
substantial part of its properties and such order, judgment or decree
continues unstayed and in effect for a period of sixty (60) days, or
approve a petition filed against the Borrower or any Subsidiary seeking
liquidation, reorganization or arrangement or similar relief under the
federal bankruptcy laws or any other applicable law or statute of the
United States of America or any state, which petition is not dismissed
within sixty (60) days; or if, under the provisions of any other law for
the relief or aid of debtors, a court of competent jurisdiction shall
assume custody or control of the Borrower or any Subsidiary or of the whole
or any substantial part of its properties, which control is not
relinquished within sixty (60) days; or if there is commenced against the
Borrower or any Subsidiary any proceeding or petition seeking
reorganization, arrangement or similar relief under the federal bankruptcy
laws or any other applicable law or statute of the United States of America
or any state which proceeding or petition remains undismissed for a period
of sixty (60) days; or if the Borrower or any Subsidiary takes any action
to indicate its consent to or approval of any such proceeding or petition;
or
(i) if (i) one or more judgments or orders where the amount not
covered by insurance (or the amount as to which the insurer denies
liability) is in excess of $5,000,000 is rendered against the Borrower or
any Subsidiary, or (ii) there is any attachment, injunction or execution
against any of the Borrower's or Subsidiaries' properties for any amount in
67
excess of $5,000,000 in the aggregate; and such judgment, attachment,
injunction or execution remains unpaid, unstayed, undischarged, unbonded or
undismissed for a period of thirty (30) days; or
(j) if the Borrower or any Subsidiary shall, other than in the
ordinary course of business (as determined by past practices), suspend all
or any part of its operations material to the conduct of the business of
the Borrower or such Subsidiary for a period of more than sixty (60) days;
or
(k) if the Borrower or any Subsidiary shall breach any of the material
terms or conditions of any agreement under which any Rate Hedging
Obligations permitted hereby is created and such breach shall continue
beyond any grace period, if any, relating thereto pursuant to the terms of
such agreement, or if the Borrower or any Subsidiary shall disaffirm or
seek to disaffirm any such agreement or any of its obligations thereunder;
or
(l) if there shall occur and not be waived an Event of Default as
defined in any of the other Loan Documents;
(m) any actual or asserted invalidity (other than by the Agent and
Lenders) of any of the Loan Documents; and
(n) if there shall occur a Change in Control;
then, and in any such event and at any time thereafter, if such Event of Default
or any other Event of Default shall have not been waived,
(A) either or both of the following actions may be taken: (i)
the Agent, with the consent of the Required Lenders, may, and at the
direction of the Required Lenders shall, declare any obligation of the
Lenders and the Issuing Bank to make further Revolving Loans and Swing
Line Loans or to issue additional Letters of Credit terminated,
whereupon the obligation of each Lender to make further Revolving
Loans, of NationsBank to make further Swing Line Loans, and of the
Issuing Bank to issue additional Letters of Credit, hereunder shall
terminate immediately, and (ii) the Agent shall at the direction of
the Required Lenders, at their option, declare by notice to the
Borrower any or all of the Obligations to be immediately due and
payable, and the same, including all interest accrued thereon and all
other obligations of the Borrower to the Agent and the Lenders, shall
forthwith become immediately due and payable without presentment,
demand, protest, notice or other formality of any kind, all of which
are hereby expressly waived, anything contained herein or in any
instrument evidencing the Obligations to the contrary notwithstanding;
provided, however, that notwithstanding the above, if there shall
--------
occur an Event of Default under clause (g) or (h) above, then the
obligation of the Lenders to make Revolving Loans, of NationsBank to
make Swing Line Loans, and of the Issuing Bank to issue Letters of
Credit hereunder shall automatically terminate and any and all of the
68
Obligations shall be immediately due and payable without the necessity
of any action by the Agent or the Required Lenders or notice to the
Agent or the Lenders;
(B) The Borrower shall, upon demand of the Agent or the Required
Lenders, deposit cash with the Agent in an amount equal to the amount
of any Letter of Credit Outstandings, as collateral security for the
repayment of any future drawings or payments under such Letters of
Credit, and such amounts shall be held by the Agent pursuant to the
terms of the LC Account Agreement; and
(C) the Agent and each of the Lenders shall have all of the
rights and remedies available under the Loan Documents or under any
applicable law.
10.2. Agent to Act. In case any one or more Events of Default shall
------------
occur and not have been waived, the Agent may, and at the direction of the
Required Lenders shall, proceed to protect and enforce their rights or remedies
either by suit in equity or by action at law, or both, whether for the specific
performance of any covenant, agreement or other provision contained herein or in
any other Loan Document, or to enforce the payment of the Obligations or any
other legal or equitable right or remedy.
10.3. Cumulative Rights. No right or remedy herein conferred upon the
-----------------
Lenders or the Agent is intended to be exclusive of any other rights or remedies
contained herein or in any other Loan Document, and every such right or remedy
shall be cumulative and shall be in addition to every other such right or remedy
contained herein and therein or now or hereafter existing at law or in equity or
by statute, or otherwise.
10.4. No Waiver. No course of dealing between the Borrower and any
---------
Lender or the Agent or any failure or delay on the part of any Lender or the
Agent in exercising any rights or remedies under any Loan Document or otherwise
available to it shall operate as a waiver of any rights or remedies and no
single or partial exercise of any rights or remedies shall operate as a waiver
or preclude the exercise of any other rights or remedies hereunder or of the
same right or remedy on a future occasion.
10.5. Allocation of Proceeds. If an Event of Default has occurred and
----------------------
not been waived, and the maturity of the Notes has been accelerated pursuant to
Article X hereof, all payments received by the Agent hereunder, in respect of
---------
any principal of or interest on the Obligations or any other amounts payable by
the Borrower hereunder, shall be applied by the Agent in the following order:
(a) amounts due to the Lenders pursuant to Sections 2.10, 3.3, 3.4 and
---------------------------
12.5;
----
(b) amounts due to the Agent pursuant to Section 11.9;
------------
(c) payments of interest on Loans, Swing Line Loans and Reimbursement
Obligations, to be applied for the ratable benefit of the Lenders (with
amounts payable in
69
respect of Swing Line Outstandings being included in such calculation and
paid to NationsBank);
(d) payments of principal of Loans, Swing Line Loans and Reimbursement
Obligations, to be applied for the ratable benefit of the Lenders (with
amounts payable in respect of Swing Line Outstandings being included in
such calculation and paid to NationsBank);
(e) payments of cash amounts to the Agent in respect of outstanding
Letters of Credit pursuant to Section 10.1(b);
---------------
(f) amounts due to the Lenders pursuant to Sections 3.2(g), 8.15 and
---------------------
12.9;
----
(g) payments of all other amounts due under any of the Loan Documents,
if any, to be applied for the ratable benefit of the Lenders;
(h) amounts due to any of the Lenders in respect of Obligations
consisting of liabilities under any Swap Agreement with any of the Lenders
on a pro rata basis according to the amounts owed; and
(i) any surplus remaining after application as provided for herein, to
the Borrower or otherwise as may be required by applicable law.
70
ARTICLE XI
The Agent
---------
11.1. Appointment, Powers, and Immunities. Each Lender hereby
-----------------------------------
irrevocably appoints and authorizes the Agent to act as its agent under this
Agreement and the other Loan Documents with such powers and discretion as are
specifically delegated to the Agent by the terms of this Agreement and the other
Loan Documents, together with such other powers as are reasonably incidental
thereto. The Agent (which term as used in this sentence and in Section 11.5 and
------------
the first sentence of Section 11.6 hereof shall include its affiliates and its
------------
own and its affiliates' officers, directors, employees, and agents): (a) shall
not have any duties or responsibilities except those expressly set forth in this
Agreement and shall not be a trustee or fiduciary for any Lender; (b) shall not
be responsible to the Lenders for any recital, statement, representation, or
warranty (whether written or oral) made in or in connection with any Loan
Document or any certificate or other document referred to or provided for in, or
received by any of them under, any Loan Document, or for the value, validity,
effectiveness, genuineness, enforceability, or sufficiency of any Loan Document,
or any other document referred to or provided for therein or for any failure by
any Loan Party or any other Person to perform any of its obligations thereunder;
(c) shall not be responsible for or have any duty to ascertain, inquire into, or
verify the performance or observance of any covenants or agreements by any Loan
Party or the satisfaction of any condition or to inspect the property (including
the books and records) of any Loan Party or any of its Subsidiaries or
affiliates; (d) shall not be required to initiate or conduct any litigation or
collection proceedings under any Loan Document; and (e) shall not be responsible
for any action taken or omitted to be taken by it under or in connection with
any Loan Document, except for its own gross negligence or willful misconduct.
The Agent may employ agents and attorneys-in-fact and shall not be responsible
for the negligence or misconduct of any such agents or attorneys-in-fact
selected by it with reasonable care. Each Lender hereby irrevocably designates
and appoints NationsBank as the Agent for the Lenders under this Agreement, and
each of the Lenders hereby irrevocably authorizes NationsBank as the Agent for
such Lender, to take such action on its behalf under the provisions of this
Agreement and the other Loan Documents and to exercise such powers as are
expressly delegated to the Agent by the terms of this Agreement and such other
Loan Documents, together with such other powers as are reasonably incidental
thereto. The Agent shall not have any duties or responsibilities, except those
expressly set forth herein, or any fiduciary relationship with any of the
Lenders, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or any other Loan
Document or otherwise exist against the Agent.
11.2. Reliance by Agent. The Agent shall be entitled to rely upon any
-----------------
certification, notice, instrument, writing, or other communication (including,
without limitation, any thereof by telephone or telefacsimile) believed by it to
be genuine and correct and to have been signed, sent or made by or on behalf of
the proper Person or Persons, and upon advice and statements of legal counsel
(including counsel for any Loan Party), independent accountants, and other
experts selected by the Agent. The Agent may deem and treat the payee of any
Note as the holder thereof for all purposes hereof unless and until the Agent
receives and accepts an Assignment and Acceptance executed in accordance with
Section 12.1 hereof. As to any matters not expressly provided for by this
------------
Agreement, the Agent shall not be required to exercise any discretion or take
any action, but shall be
71
required to act or to refrain from acting (and shall be fully protected in so
acting or refraining from acting) upon the instructions of the Required
Lenders, and such instructions shall be binding on all of the Lenders; provided,
--------
however, that the Agent shall not be required to take any action that exposes
-------
the Agent to personal liability or that is contrary to any Loan Document or
applicable law or unless it shall first be indemnified to its satisfaction by
the Lenders against any and all liability and expense which may be incurred by
it by reason of taking any such action.
11.3. Defaults. The Agent shall not be deemed to have knowledge or
--------
notice of the occurrence of a Default or Event of Default unless the Agent has
received written notice from a Lender or the Borrower specifying such Default or
Event of Default and stating that such notice is a "Notice of Default". In the
event that the Agent receives such a notice of the occurrence of a Default or
Event of Default, the Agent shall give prompt notice thereof to the Lenders.
The Agent shall (subject to Section 11.2 hereof) take such action with respect
------------
to such Default or Event of Default as shall reasonably be directed by the
Required Lenders, provided that, unless and until the Agent shall have received
-------- ----
such directions, the 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 interest of the Lenders.
11.4. Rights as Lender. With respect to its Revolving Credit
----------------
Commitment and the Loans made by it, NationsBank (and any successor acting as
Agent) in its capacity as a Lender hereunder shall have the same rights and
powers hereunder as any other Lender and may exercise the same as though it were
not acting as the Agent, and the term "Lender" or "Lenders" shall, unless the
context otherwise indicates, include the Agent in its individual capacity.
NationsBank (and any successor acting as Agent) and its affiliates may (without
having to account therefor to any Lender) accept deposits from, lend money to,
make investments in, provide services to, and generally engage in any kind of
lending, trust, or other business with any Loan Party or any of its Subsidiaries
or affiliates as if it were not acting as Agent, and NationsBank (and any
successor acting as Agent) and its affiliates may accept fees and other
consideration from any Loan Party or any of its Subsidiaries or affiliates for
services in connection with this Agreement or otherwise without having to
account for the same to the Lenders.
11.5. Indemnification. The Lenders agree to indemnify the Agent (to
---------------
the extent not reimbursed under Section 12.9 hereof, but without limiting the
------------
obligations of the Borrower under such Section) ratably in accordance with their
respective Revolving Credit Commitments, for any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses (including attorneys' fees), or disbursements of any kind and nature
whatsoever that may be imposed on, incurred by or asserted against the Agent
(including by any Lender) in any way relating to or arising out of any Loan
Document or the transactions contemplated thereby or any action taken or omitted
by the Agent under any Loan Document; provided that no Lender shall be liable
--------
for any of the foregoing to the extent they arise from the gross negligence or
willful misconduct of the Person to be indemnified. Without limitation of the
foregoing, each Lender agrees to reimburse the Agent promptly upon demand for
its ratable share of any costs or expenses payable by the Borrower under Section
-------
12.5, to the extent that the Agent is not promptly reimbursed for such costs and
----
expenses by
72
the Borrower. The agreements contained in this Section shall survive payment in
full of the Loans and all other amounts payable under this Agreement.
11.6. Non-Reliance on Agent and Other Lenders. Each Lender agrees that
---------------------------------------
it has, independently and without reliance on the Agent or any other Lender, and
based on such documents and information as it has deemed appropriate, made its
own credit analysis of the Loan Parties and their Subsidiaries and decision to
enter into this Agreement and that it will, independently and without reliance
upon the 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 analysis and
decisions in taking or not taking action under the Loan Documents. Except for
notices, reports, and other documents and information expressly required to be
furnished to the Lenders by the Agent hereunder, the Agent shall not have any
duty or responsibility to provide any Lender with any credit or other
information concerning the affairs, financial condition, or business of any Loan
Party or any of its Subsidiaries or affiliates that may come into the possession
of the Agent or any of its affiliates.
11.7. Resignation of Agent. The Agent may resign at any time by giving
--------------------
notice thereof to the Lenders and the Borrower. Upon any such resignation, the
Required Lenders shall have the right to appoint a successor Agent. If no
successor Agent shall have been so appointed by the Required Lenders and shall
have accepted such appointment within thirty (30) days after the retiring
Agent's giving of notice of resignation, then the retiring Agent may, on behalf
of the Lenders, appoint a successor Agent which shall be a commercial bank
organized under the laws of the United States of America having combined capital
and surplus of at least $500,000,000. Upon the acceptance of any appointment as
Agent hereunder by a successor, such successor shall thereupon succeed to and
become vested with all the rights, powers, discretion, privileges, and duties of
the retiring Agent, and the retiring Agent shall be discharged from its duties
and obligations hereunder. After any retiring Agent's resignation hereunder as
Agent, the provisions of this Article XI shall continue in effect for its
----------
benefit in respect of any actions taken or omitted to be taken by it while it
was acting as Agent.
11.8. Sharing of Payments, etc. Each Lender agrees that if it shall,
------------------------
through the exercise of a right of banker's lien, set-off, counterclaim or
otherwise, obtain payment with respect to its Obligations (other than pursuant
to Article IV) which results in its receiving more than its pro rata share of
----------
the aggregate payments with respect to all of the Obligations (other than any
payment expressly provided hereunder to be distributed on other than a pro rata
basis and payments pursuant to Article IV), then (a) such Lender shall be deemed
----------
to have simultaneously purchased from the other Lenders a share in their
Obligations so that the amount of the Obligations held by each of the Lenders
shall be pro rata and (b) such other adjustments shall be made from time to time
as shall be equitable to insure that the Lenders share such payments ratably;
provided, however, that for purposes of this Section 11.8 the term "pro rata"
-------- ------------
shall be determined with respect to the Revolving Credit Commitment of each
Lender and to the Total Revolving Credit Commitments after subtraction in each
case of amounts, if any, by which any such Lender has not funded its share of
the outstanding Loans and Obligations. If all or any portion of any such excess
payment is thereafter recovered from the Lender which received the same, the
purchase provided in this Section 11.8 shall be rescinded to the extent of such
------------
recovery, without interest. The Borrower expressly consents to the foregoing
arrangements and agrees that each Lender so purchasing a portion of the other
Lenders' Obligations may exercise all rights of payment (including, without
limitation, all rights of set-off, banker's lien or
73
counterclaim) with respect to such portion as fully as if such Lender were the
direct holder of such portion.
11.9. Fees. The Borrower agrees to pay to the Agent, for its
----
individual account, an annual administrative fee as from time to time agreed to
by the Borrower and Agent in writing.
11.10 Security Trustee. The Agent shall be the "Security Trustee"
----------------
under any of those Stock Pledge Agreements which are expressed to be governed by
English law (the "English Pledge Agreements") and shall accept without
investigation, requisition or objection such title as any person may have to the
assets which are subject to the English Pledge Agreements and shall not (a) be
bound or concerned to examine or inquire into the title of any person; (b) be
liable for any defect or failure in the title of any person, whether such defect
or failure was known to it or might have been discovered upon examination or
inquiry and whether capable of remedy or not; (c) be liable for any failure on
its part to give notice of such English Pledge Agreement to any third party or
otherwise perfect or register the security created by such English Pledge
Agreement.
The Security Trustee shall hold the benefit of the English Pledge
Agreements upon trust for itself, the Lenders and the Agent. Upon the
appointment of any successor Security Trustee, the resigning Security Trustee
shall execute and deliver such documents and do such other acts and things as
may be necessary to vest in the successor Security Trustee all the rights, title
and interests vested in the resigning Security Trustee.
74
ARTICLE XII
Miscellaneous
-------------
12.1. Assignments and Participations. (a) Each Lender may assign to
------------------------------
one or more Eligible Assignees all or a portion of its rights and obligations
under this Agreement (including, without limitation, all or a portion of its
Loans, its Note, and its Revolving Credit Commitment); provided, however, that
-------- -------
(i) each such assignment shall be to an Eligible Assignee;
(ii) except in the case of an assignment to another Lender or an
assignment of all of a Lender's rights and obligations under this Agreement, any
such partial assignment shall be in an amount at least equal to $5,000,000 or an
integral multiple of $1,000,000 in excess thereof;
(iii) each such assignment by a Lender shall be of a constant, and
not varying, percentage of all of its rights and obligations under this
Agreement and the Note; and
(iv) the parties to such assignment shall execute and deliver to the
Agent for its acceptance an Assignment and Acceptance in the form of Exhibit B
hereto, together with any Note subject to such assignment and a processing fee
of $3,500.
Upon execution, delivery, and acceptance of such Assignment and Acceptance, the
assignee thereunder shall be a party hereto and, to the extent of such
assignment, have the obligations, rights, and benefits of a Lender hereunder and
the assigning Lender shall, to the extent of such assignment, relinquish its
rights and be released from its obligations under this Agreement. Upon the
consummation of any assignment pursuant to this Section, the assignor, the Agent
and the Borrower shall make appropriate arrangements so that, if required, new
Notes are issued to the assignor and the assignee. If the assignee is not
incorporated under the laws of the United States of America or a state thereof,
it shall deliver to the Borrower and the Agent certification as to exemption
from deduction or withholding of Taxes in accordance with Section 4.6.
-----------
(b) The Agent shall maintain at its address referred to in Section 12.2 a
------------
copy of each Assignment and Acceptance delivered to and accepted by it and a
register for the recordation of the names and addresses of the Lenders and the
Revolving Credit Commitment of, and principal amount of the Loans owing to, each
Lender from time to time (the "Register"). The entries in the Register shall be
--------
conclusive and binding for all purposes, absent manifest error, and the
Borrower, the Agent and the Lenders may treat each Person whose name is recorded
in the Register as a Lender hereunder for all purposes of this Agreement. The
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.
(c) Upon its receipt of an Assignment and Acceptance executed by the
parties thereto, together with any Note subject to such assignment and payment
of the processing fee, the Agent shall, if such Assignment and Acceptance has
been completed and is in substantially the form of Exhibit B
75
hereto, (i) accept such Assignment and Acceptance, (ii) record the information
contained therein in the Register and (iii) give prompt notice thereof to the
parties thereto.
(d) Each Lender may sell participations to one or more Persons in all or a
portion of its rights and obligations under this Agreement (including all or a
portion of its Revolving Credit Commitment and its Loans); provided, however,
-------- -------
that (i) such Lender's obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto for
the performance of such obligations, (iii) the participant shall be entitled to
the benefit of the yield protection provisions contained in Article IV and the
----------
right of set-off contained in Section 12.3, and (iv) the Borrower shall continue
------------
to deal solely and directly with such Lender in connection with such Lender's
rights and obligations under this Agreement, and such Lender shall retain the
sole right to enforce the obligations of the Borrower relating to its Loans and
its Note and to approve any amendment, modification, or waiver of any provision
of this Agreement (other than amendments, modifications, or waivers decreasing
the amount of principal of or the rate at which interest is payable on such
Loans or Note, extending any scheduled principal payment date or date fixed for
the payment of interest on such Loans or Note, extending its Revolving Credit
Commitment or releasing any Collateral or any Guarantor).
(e) Notwithstanding any other provision set forth in this Agreement, any
Lender may at any time assign and pledge all or any portion of its Loans and its
Note to any Federal Reserve Bank as collateral security pursuant to Regulation A
and any Operating Circular issued by such Federal Reserve Bank. No such
assignment shall release the assigning Lender from its obligations hereunder.
(f) Any Lender may furnish any information concerning the Borrower or any
of its Subsidiaries in the possession of such Lender from time to time to
assignees and participants (including prospective assignees and participants).
(g) The Borrower may not assign, nor shall it cause, suffer or permit any
Guarantor to assign any rights, powers, duties or obligations under this
Agreement of the other Loan Documents without the prior written consent of all
the Lenders.
12.2. Notices. Any notice shall be conclusively deemed to have been
-------
received by any party hereto and be effective (i) on the day on which delivered
(including hand delivery by commercial courier service) to such party (against
receipt therefor), (ii) on the date of receipt at such address, telefacsimile
number or telex number as may from time to time be specified by such party in
written notice to the other parties hereto or otherwise received), in the case
of notice by telegram, telefacsimile or telex, respectively (where the receipt
of such message is verified by return), or (iii) on the fifth Business Day after
the day on which mailed, if sent prepaid by certified or registered mail, return
receipt requested, in each case delivered, transmitted or mailed, as the case
may be, to the address, telex number or telefacsimile number, as appropriate,
set forth below or such other address or number as such party shall specify by
notice hereunder:
76
(a) if to the Borrower:
Xxxxx Industries, Inc.
000 Xxx Xxxxxx Xxxx
Xxxxxx, Xxxxxxx 00000
Attn: Xxxxxxx X. Xxxxx, Vice President and General Counsel
Telephone: (000) 000-0000
Telefacsimile: (000) 000-0000
(b) if to the Agent:
NationsBank, National Association
Independence Center, 00xx Xxxxx
XX0-000-00-00
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000
Attention: Xxxxxx Xxxxx, Agency Services
Telephone: (000) 000-0000
Telefacsimile: (000) 000-0000
(c) if to the Lenders:
At the addresses set forth on the signature pages hereof and on
the signature page of each Assignment and Acceptance;
(d) if to any Guarantor, at the address set forth on the signature
page of the Facility Guaranty or Stock Pledge Agreement executed
by such Guarantor, as the case may be.
12.3. Right of Set-off; Adjustments. (a) Upon the occurrence and
-----------------------------
during the continuance of any Event of Default, each Lender (and each of its
affiliates) is hereby authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by such Lender (or any of its affiliates)
to or for the credit or the account of the Borrower against any and all of the
obligations of the Borrower now or hereafter existing under this Agreement and
the Note held by such Lender, irrespective of whether such Lender shall have
made any demand under this Agreement or such Note and although such obligations
may be unmatured. Each Lender agrees promptly to notify the Borrower after any
such set-off and application made by such Lender; provided, however, that the
-------- -------
failure to give such notice shall not affect the validity of such set-off and
application. The rights of each Lender under this Section are in addition to
other rights and remedies (including, without limitation, other rights of set-
off) that such Lender may have.
(b) If any Lender (a "benefitted Lender") shall at any time receive any
-----------------
payment of all or part of the Loans owing to it, or interest thereon, or receive
any collateral in respect thereof (whether voluntarily or involuntarily, by set-
off, or otherwise), in a greater proportion than any such payment to or
collateral received by any other Lender, if any, in respect of such other
Lender's Loans owing
77
to it, or interest thereon, such benefitted Lender shall purchase for cash from
the other Lenders a participating interest in such portion of each such other
Lender's Loans owing to it, or shall provide such other Lenders with the
benefits of any such collateral, or the proceeds thereof, as shall be necessary
to cause such benefitted Lender to share the excess payment or benefits of such
collateral or proceeds ratably with each of the Lenders; provided, however, that
-------- -------
if all or any portion of such excess payment or benefits is thereafter recovered
from such benefitted Lender, such purchase shall be rescinded, and the purchase
price and benefits returned, to the extent of such recovery, but without
interest. The Borrower agrees that any Lender so purchasing a participation
from a Lender pursuant to this Section 12.3 may, to the fullest extent permitted
-------------
by law, exercise all of its rights of payment (including the right of set-off)
with respect to such participation as fully as if such Person were the direct
creditor of the Borrower in the amount of such participation.
12.4. Survival. All covenants, agreements, representations and
--------
warranties made herein shall survive the making by the Lenders of the Loans and
the issuance of the Letters of Credit and the execution and delivery to the
Lenders of this Agreement and the Notes and shall continue in full force and
effect so long as any of Obligations remain outstanding or any Lender has any
commitment hereunder or the Borrower has continuing obligations hereunder unless
otherwise provided herein. Whenever in this Agreement any of the parties hereto
is referred to, such reference shall be deemed to include the successors and
permitted assigns of such party and all covenants, provisions and agreements by
or on behalf of the Borrower which are contained in the Loan Documents shall
inure to the benefit of the successors and permitted assigns of the Lenders or
any of them.
12.5. Expenses. The Borrower agrees to pay on demand all costs and
---------
expenses of the Agent in connection with the syndication, preparation,
execution, delivery, administration, modification, and amendment of this
Agreement, the other Loan Documents, and the other documents to be delivered
hereunder, including, without limitation, the reasonable fees and expenses of
counsel for the Agent (including the cost of internal counsel) with respect
thereto and with respect to advising the Agent as to its rights and
responsibilities under the Loan Documents. The Borrower further agrees to pay
on demand all costs and expenses of the Agent and the Lenders, if any
(including, without limitation, reasonable attorneys' fees and expenses and the
cost of internal counsel), in connection with the enforcement (whether through
negotiations, legal proceedings, or otherwise) of the Loan Documents and the
other documents to be delivered hereunder.
12.6. Amendments and Waivers. Any provision of this Agreement or any
----------------------
other Loan Document may be amended or waived if, but only if, such amendment or
waiver is in writing and is signed by the Borrower and the Required Lenders
(and, if Article XI or the rights or duties of the Agent are affected thereby,
-----------
by the Agent); provided that no such amendment or waiver shall, unless signed by
--------
all the Lenders, (i) increase the Revolving Credit Commitments of any or all of
the Lenders, (ii) reduce the principal of or rate of interest on any Loan or any
fees or other amounts payable hereunder, (iii) postpone any date fixed for the
payment of any scheduled installment of principal of or interest on any Loan or
any fees or other amounts payable hereunder or for termination of any Revolving
Credit Commitment, (iv) change the definition of Required Lenders or any
provision of this Section 12.6 or (v) release any Collateral or any Guarantor;
------------
and provided, further, that no such amendment or waiver which affects the
-------- -------
rights, privileges, or obligations of NationsBank as provider
78
of the Swing Loans or issuer of Letters of Credit, shall be effective unless
signed in writing by NationsBank.
Notwithstanding any provision of the other Loan Documents to the contrary, as
between the Agent and the Lenders, execution by the Agent shall not be deemed
conclusive evidence that the Agent has obtained the written consent of the
Required Lenders. 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, except as otherwise expressly provided herein. No delay or
omission on any Lender's or the Agent's part in exercising any right, remedy or
option shall operate as a waiver of such or any other right, remedy or option or
of any Default or Event of Default.
12.7. Counterparts. This Agreement may be executed in any number of
------------
counterparts, each of which when so executed and delivered shall be deemed an
original, and it shall not be necessary in making proof of this Agreement to
produce or account for more than one such fully-executed counterpart.
12.8. Termination. The termination of this Agreement shall not affect
-----------
any rights of the Borrower, the Lenders or the Agent or any obligation of the
Borrower, the Lenders or the Agent, arising prior to the effective date of such
termination, and the provisions hereof shall continue to be fully operative
until all transactions entered into or rights created or obligations incurred
prior to such termination have been fully disposed of, concluded or liquidated
and the Obligations arising prior to or after such termination have been
irrevocably paid in full. The rights granted to the Agent for the benefit of
the Lenders under the Loan Documents shall continue in full force and effect,
notwith standing the termination of this Agreement, until all of the
Obligations have been paid in full after the termination hereof (other than
Obligations in the nature of continuing indemnities or expense reimbursement
obligations not yet due and payable, which shall continue) or the Borrower has
furnished the Lenders and the Agent with an indemnification satisfactory to the
Agent and each Lender with respect thereto. All representations, warranties,
covenants, waivers and agreements contained herein shall survive termination
hereof until payment in full of the Obligations unless otherwise provided
herein. Notwithstanding the foregoing, if after receipt of any payment of all
or any part of the Obligations, any Lender is for any reason compelled to
surrender such payment to any Person because such payment is determined to be
void or voidable as a preference, impermissible setoff, a diversion of trust
funds or for any other reason, this Agreement shall continue in full force and
the Borrower shall be liable to, and shall indemnify and hold the Agent or such
Lender harmless for, the amount of such payment surrendered until the Agent or
such Lender shall have been finally and irrevocably paid in full. The
provisions of the foregoing sentence shall be and remain effective
notwithstanding any contrary action which may have been taken by the Agent or
the Lenders in reliance upon such payment, and any such contrary action so taken
shall be without prejudice to the Agent or the Lenders' rights under this
Agreement and shall be deemed to have been conditioned upon such payment having
become final and irrevocable.
12.9. Indemnification. (a) The Borrower agrees to indemnify and hold
---------------
harmless the Agent and each Lender and each of their affiliates and their
respective officers, directors, employees, agents, and advisors (each, an
"Indemnified Party") from and against any and all claims, damages, losses,
------------------
liabilities, costs, and expenses (including, without limitation, reasonable
attorneys' fees) that may be
79
incurred by or asserted or awarded against any Indemnified Party, in each case
arising out of or in connection with or by reason of (including, without
limitation, in connection with any investigation, litigation, or proceeding or
preparation of defense in connection therewith) the Loan Documents, any of the
transactions contemplated herein or the actual or proposed use of the proceeds
of the Loans, except to the extent such claim, damage, loss, liability, cost, or
expense is found in a final, non-appealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified Party's gross negligence or
willful misconduct. In the case of an investigation, litigation or other
proceeding to which the indemnity in this Section 12.9(a) applies, such
---------------
indemnity shall be effective whether or not such investigation, litigation or
proceeding is brought by the Borrower, its directors, shareholders or creditors
or an Indemnified Party or any other Person or any Indemnified Party is
otherwise a party thereto and whether or not the transactions contemplated
hereby are consummated. The Borrower agrees not to assert any claim against the
Agent, any Lender, any of their affiliates, or any of their respective
directors, officers, employees, attorneys, agents, and advisers, on any theory
of liability, for special, indirect, consequential, or punitive damages arising
out of or otherwise relating to the Loan Documents, any of the transactions
contemplated herein or the actual or proposed use of the proceeds of the Loans.
(b) Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in
this Section 12.9 shall survive the payment in full of the Loans and all other
------------
amounts payable under this Agreement.
12.10 Severability. If any provision of this Agreement or the other Loan
------------
Documents shall be determined to be illegal or invalid as to one or more of the
parties hereto, then such provision shall remain in effect with respect to all
parties, if any, as to whom such provision is neither illegal nor invalid, and
in any event all other provisions hereof shall remain effective and binding on
the parties hereto.
12.11 Entire Agreement. This Agreement, together with the other Loan
----------------
Documents, constitutes the entire agreement among the parties with respect to
the subject matter hereof and supersedes all Prior Agreements, previous
proposals, negotiations, representations, commitments and other communications
between or among the parties, both oral and written, with respect thereto.
12.12 Agreement Controls. In the event that any term of any of the Loan
------------------
Documents other than this Agreement conflicts with any express term of this
Agreement, the terms and provisions of this Agreement shall control to the
extent of such conflict.
12.13 Usury Savings Clause. Notwithstanding any other provision herein,
--------------------
the aggregate interest rate charged under any of the Notes, including all
charges or fees in connection therewith deemed in the nature of interest under
applicable law shall not exceed the Highest Lawful Rate (as such term is defined
below). If the rate of interest (determined without regard to the preceding
sentence) under this Agreement at any time exceeds the Highest Lawful Rate (as
defined below), the outstanding amount of the Loans made hereunder shall bear
interest at the Highest Lawful Rate until the total amount of interest due
hereunder equals the amount of interest which would have been due hereunder if
the stated rates of interest set forth in this Agreement had at all times been
in effect. In
80
addition, if when the Loans made hereunder are repaid in full the total interest
due hereunder (taking into account the increase provided for above) is less than
the total amount of interest which would have been due hereunder if the stated
rates of interest set forth in this Agreement had at all times been in effect,
then to the extent permitted by law, the Borrower shall pay to the Agent an
amount equal to the difference between the amount of interest paid and the
amount of interest which would have been paid if the Highest Lawful Rate had at
all times been in effect. Notwithstanding the foregoing, it is the intention of
the Lenders and the Borrower to conform strictly to any applicable usury laws.
Accordingly, if any Lender contracts for, charges, or receives any consideration
which constitutes interest in excess of the Highest Lawful Rate, then any such
excess shall be cancelled automatically and, if previously paid, shall at such
Lender's option be applied to the outstanding amount of the Loans made hereunder
or be refunded to the Borrower. As used in this paragraph, the term "Highest
Lawful Rate" means the maximum lawful interest rate, if any, that at any time or
from time to time may be contracted for, charged, or received under the laws
applicable to such Lender which are presently in effect or, to the extent
allowed by law, under such applicable laws which may hereafter be in effect and
which allow a higher maximum nonusurious interest rate than applicable laws now
allow.
12.14 Confidentiality. The Agent and each Lender (each, a "Lending
---------------
Party") agrees to keep confidential any information furnished or made available
to it by the Borrower pursuant to this Agreement that is marked confidential;
provided that nothing herein shall prevent any Lending Party from disclosing
such information (a) to any other Lending Party or any affiliate of any Lending
Party, or any officer, director, employee, agent, or advisor of any Lending
Party or affiliate of any Lending Party, (b) to any other Person if reasonably
incidental to the administration of the credit facility provided herein, (c) as
required by any law, rule, or regulation, (d) upon the order of any court or
administrative agency, (e) upon the request or demand of any regulatory agency
or authority, (f) that is or becomes available to the public or that is or
becomes available to any Lending Party other than as a result of a disclosure by
any Lending Party prohibited by this Agreement, (g) in connection with any
litigation to which such Lending Party or any of its affiliates may be a party,
(h) to the extent necessary in connection with the exercise of any remedy under
this Agreement or any other Loan Document, and (i) subject to provisions
substantially similar to those contained in this Section 12.14, to any actual or
proposed participant or assignee.
12.15 Governing Law; Waiver of Jury Trial.
-----------------------------------
(a) THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (OTHER THAN THOSE
SECURITY INSTRUMENTS WHICH EXPRESSLY PROVIDE THAT THEY SHALL BE GOVERNED BY
THE LAWS OF ANOTHER JURISDICTION) SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF GEORGIA APPLICABLE TO CONTRACTS
EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.
(b) THE BORROWER HEREBY EXPRESSLY AND IRREVOCABLY AGREES AND
CONSENTS THAT ANY SUIT, ACTION OR PROCEEDING
81
ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE TRANSACTIONS
CONTEMPLATED HEREIN MAY BE INSTITUTED IN ANY STATE OR FEDERAL COURT SITTING
IN THE COUNTY OF XXXXXX, STATE OF GEORGIA, UNITED STATES OF AMERICA AND, BY
THE EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER EXPRESSLY WAIVES
ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE IN,
OR TO THE EXERCISE OF JURISDICTION OVER IT AND ITS PROPERTY BY, ANY SUCH
COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING, AND THE BORROWER HEREBY
IRREVOCABLY SUBMITS GENERALLY AND UNCONDITIONALLY TO THE JURISDICTION OF
ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING.
(c) THE BORROWER AGREES THAT SERVICE OF PROCESS MAY BE MADE BY
PERSONAL SERVICE OF A COPY OF THE SUMMONS AND COMPLAINT OR OTHER LEGAL
PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING, OR BY REGISTERED OR
CERTIFIED MAIL (POSTAGE PREPAID) TO THE ADDRESS OF THE BORROWER PROVIDED IN
SECTION 12.2, OR BY ANY OTHER METHOD OF SERVICE PROVIDED FOR UNDER THE
------------
APPLICABLE LAWS IN EFFECT IN THE STATE OF GEORGIA.
(d) NOTHING CONTAINED IN SUBSECTIONS (a) OR (b) HEREOF SHALL
--------------- ---
PRECLUDE THE AGENT OR ANY LENDER FROM BRINGING ANY SUIT, ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT IN THE COURTS OF
ANY JURISDICTION WHERE THE BORROWER OR ANY OF THE BORROWER'S PROPERTY OR
ASSETS MAY BE FOUND OR LOCATED. TO THE EXTENT PERMITTED BY THE APPLICABLE
LAWS OF ANY SUCH JURISDICTION, THE BORROWER HEREBY IRREVOCABLY SUBMITS TO
THE JURISDICTION OF ANY SUCH COURT AND EXPRESSLY WAIVES, IN RESPECT OF ANY
SUCH SUIT, ACTION OR PROCEEDING, OBJECTION TO THE EXERCISE OF JURISDICTION
OVER IT AND ITS PROPERTY BY ANY SUCH OTHER COURT OR COURTS WHICH NOW OR
HEREAFTER MAY BE AVAILABLE UNDER APPLICABLE LAW.
(e) IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS OR
REMEDIES UNDER OR RELATED TO ANY LOAN DOCUMENT OR ANY AMENDMENT,
INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR THAT MAY IN THE FUTURE BE
DELIVERED IN CONNECTION THEREWITH, THE BORROWER, THE AGENT AND THE LENDERS
HEREBY AGREE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, THAT ANY SUCH
ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY
AND HEREBY IRREVOCABLY WAIVE,
82
TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH PERSON MAY HAVE
TO TRIAL BY JURY IN ANY SUCH ACTION OR PROCEEDING.
[Signatures on following pages]
83
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
made, executed and delivered by their duly authorized officers as of the day and
year first above written.
XXXXX INDUSTRIES, INC.
By: /s/ Xxxxxx Xxxxxxx
----------------------------------------------
Name: Xxxxxx Xxxxxxx
Title: Vice President and Chief Financial Officer
84
NATIONSBANK, NATIONAL ASSOCIATION
(SOUTH), as Agent for the Lenders
By: /s/ W. Xxxx Xxxxx
----------------------------------------------
Name: W. Xxxx Xxxxx
Title: Senior Vice President
85
NATIONSBANK, NATIONAL ASSOCIATION
(SOUTH)
By: /s/ W. Xxxx Xxxxx
----------------------------------------------
Name: W. Xxxx Xxxxx
Title: Senior Vice President
Lending Office:
NationsBank, National Association
Independence Center, 00xx Xxxxx
XX0-000-00-00
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000
Attention: Xxxxxx Xxxxx
Telephone:(000) 000-0000
Telefacsimile:(000) 000-0000
Wire Transfer Instructions:
NationsBank, National Association (South)
Atlanta, Georgia
ABA# 0614000052
Account No.: 1366210101997
Reference: Xxxxx Industries, Inc.
Attention: Corporate Credit Support
86
THE FIRST NATIONAL BANK OF CHICAGO
By: /s/ Xxxxx X. McNella
----------------------------------------------
Name: Xxxxx X. XxXxxxx
Title: Authorized Agent
Lending Office:
Xxx Xxxxx Xxxxxxxx Xxxxx
Xxxxxxx, Xxxxxxxx 00000
Wire Transfer Instructions:
The First National Bank of Chicago
Xxxxxxx, Xxxxxxxx 00000
ABA #000000000
Account: DCS Incoming Clearing Account
#7521-7653
Attention: Lorenzi
Reference: Xxxxx Industries, Inc.
87
SUNTRUST BANK, ATLANTA
By: /s/ C. Xxx Xxxxxx, Xx.
----------------------------------------------
Name: C. Xxx Xxxxxx Xx.
Title: Vice President
By: /s/ Xxxxxx X. Xxxxx
----------------------------------------------
Name: Xxxxxx X. Xxxxx
Title: Assistant Vice President
Lending Office:
00 Xxxx Xxxxx, 00xx Xxxxx
Xxxxxxx, Xxxxxxx 00000
Wire Transfer Instructions:
SunTrust Bank, Atlanta
Atlanta, Georgia
ABA #000000000
Account #9088000112 - Wire Clearing
Attention: Corporate Banking Operations Support
Reference: Xxxxx Industries, Inc.
88
ABN AMRO BANK NV
By: /s/ Xxxxxx X. Xxxxxxx By: /s/ Xxxxx X. Xxxxxx
------------------------- ----------------------------------------------
Name: Xxxxxx X. Xxxxxxx Name: Xxxxx X. Xxxxxx
Title: Vice President Title: Group Vice President
Lending Office:
Xxx Xxxxxxx Xxxxx
Xxxxx 0000
Xxxxxxx, Xxxxxxx 00000
Wire Transfer Instructions:
Federal Reserve Bank
New York, New York
Favor of: ABN AMRO Bank NV
New York, New York
ABA #0260-09580
Further Credit to: ABN AMRO Bank NV,
Atlanta Agency
Account #651001019741
Attention: Xxxxx Xxxxxx
Reference: Xxxxx Industries, Inc.
89
SCOTIABANC INC.
By: /s/ P. M. Xxxxx
----------------------------------------------
Name: P.M. Xxxxx
Title: Relationship Manager
Lending Office:
000 Xxxxxxxxx Xxxxxx, X.X.
Xxxxx 0000
Xxxxxxx, Xxxxxxx 00000
Wire Transfer Instructions:
The Bank of Nova Scotia, New York Agency
0 Xxxxxxx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
ABA #000000000
Account #__________
Attention: Atlanta Agency
Reference: Xxxxx Industries, Inc.
90
CREDIT LYONNAIS ATLANTA AGENCY
By: /s/ Xxxxx X. Xxxxxx
----------------------------------------------
Name: Xxxxx X. Xxxxxx
Title: First Vice President & Manager
Lending Office:
000 Xxxxxxxxx Xxxxxx, X.X.
Xxxxx 0000
Xxxxxxx, Xxxxxxx 00000
Wire Transfer Instructions:
Credit Lyonnais Xxx Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
ABA #0000-0000-0
Account #01.24173.0001.00
Credit: CL Atlanta Agency
Attention: Loan Servicing
Reference: Xxxxx Industries, Inc.
00
XXXXXXXX XXXX XX XXXXXXX, N.A.
By: /s/ X. Xxxxxxxx Rison, Jr.
----------------------------------------------
Name: X. Xxxxxxxx Xxxxx, Jr.
Title: Vice President
Lending Office:
000 Xxxxxxxxx Xxxxxx, X.X., 00xx Xxxxx
Xxxxxxx, Xxxxxxx 00000-0000
Wire Transfer Instructions:
Wachovia Bank of Georgia, N.A.
Atlanta, Georgia
ABA #000000000
Account #00-000-000
Attention: Xx. Xxxxxx Xxxxx
Reference: Xxxxx Industries, Inc.
92
XXXXXX XXXXXXX & CO. LIMITED
By: /s/ X. X. Xxxxx
----------------------------------------------
Name: X.X. Xxxxx
Title: Director
Lending Office:
00 Xxxxxxxx Xxxxxx
Xxxxxx XX0X 0XX
Xxxxxx Xxxxxxx
Wire Transfer Instructions:
Citibank
New York, New York
ABA #__________
For account of: Xxxxxx Xxxxxxx, London
Account #3612 0995
Attention:______________________
Reference: Xxxxx Industries, Inc.
93
THE SUMITOMO BANK, LIMITED
By: /s/ Xxxxx X. Xxxxxx
----------------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President & Mgr.
By: /s/ Xxxxx X. Xxxxxx
----------------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
Lending Office:
000 X. Xxxxxx Xxxxx
Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000
Wire Transfer Instructions:
The Sumitomo Bank, Ltd., Chicago Branch
Chicago, Illinois
ABA #000000000
Account #_______________
Attention: ________________________
Reference: Xxxxx Industries, Inc.
94
THE BANK OF TOKYO-MITSUBISHI, LTD.
By: /s/ Xxxx X. Xxxxxxx
----------------------------------------------
Name: G. England
Title: V.P. & Manager
Lending Office:
000 Xxxxxxxxx Xxxxxx, X.X.
Xxxxx 0000
Xxxxxxx, Xxxxxxx 00000-0000
Wire Transfer Instructions:
The Bank of Tokyo-Mitsubishi, Ltd.
Xxxxxxx, Xxxxxxx 00000-0000
ABA #026 009 632
Account #00000000
Attention: BTM Atlanta Agency
Reference: Xxxxx Industries, Inc.
00
XXX XXXXX XXXX, XXXXXXX, XXXXXXX
AGENCY
By: /s/ Xxxxxx X. Xxxxx
----------------------------------------------
Name: Xxxxxx X. Xxxxx
Title: Vice President
Lending Office:
000 Xxxxxxxxx Xxxxxx, X.X.
Xxxxx 0000
Xxxxxxx, Xxxxxxx 00000
Wire Transfer Instructions:
The Sanwa Bank-New York Branch
New York, New York
ABA #000000000
Account: F/A: Sanwa Atlanta
Account #999669
Reference: Xxxxx Industries, Inc.
96
