PUBLISHED CUSIP NUMBER: 00000XXX0
[WACHOVIA LOGO OMITTED]
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$825,000,000
CREDIT AGREEMENT
among
ARMOR HOLDINGS, INC.,
as Borrower,
THE MATERIAL DOMESTIC SUBSIDIARIES OF THE BORROWER
FROM TIME TO TIME PARTIES HERETO,
as Guarantors,
THE LENDERS PARTIES HERETO,
and
WACHOVIA BANK, NATIONAL ASSOCIATION,
as Administrative Agent
BANK OF AMERICA, N.A.
and
SUNTRUST BANK,
as Co-Syndication Agents
KEY BANK NATIONAL ASSOCIATION
and
JPMORGAN CHASE BANK,
as Co-Documentation Agents
Dated as of May 25, 2006
WACHOVIA CAPITAL MARKETS, LLC,
as Sole Lead Arranger and Sole Book Runner
================================================================================
Prepared by:
---------------------------
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TABLE OF CONTENTS
Page
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ARTICLE I DEFINITIONS.................................................... 1
Section 1.1 Defined Terms........................................... 1
Section 1.2 Other Definitional Provisions........................... 32
Section 1.3 Accounting Terms........................................ 32
Section 1.4 Time References......................................... 33
ARTICLE II THE LOANS; AMOUNT AND TERMS................................... 33
Section 2.1 Revolving Loans......................................... 33
Section 2.2 Term Loan A............................................. 35
Section 2.2A Interim Term Loan....................................... 37
Section 2.3 Letter of Credit Subfacility............................ 38
Section 2.4 Swingline Loan Subfacility.............................. 41
Section 2.5 Fees.................................................... 43
Section 2.6 Commitment Reductions................................... 44
Section 2.7 Prepayments............................................. 44
Section 2.8 Default Rate and Payment Dates.......................... 47
Section 2.9 Conversion Options...................................... 48
Section 2.10 Computation of Interest and Fees; Usury................. 49
Section 2.11 Pro Rata Treatment and Payments......................... 50
Section 2.12 Non-Receipt of Funds by the Administrative Agent........ 52
Section 2.13 Inability to Determine Interest Rate.................... 53
Section 2.14 Illegality.............................................. 53
Section 2.15 Requirements of Law..................................... 54
Section 2.16 Indemnity............................................... 55
Section 2.17 Taxes................................................... 56
Section 2.18 Indemnification; Nature of Issuing Lender's Duties...... 58
Section 2.19 Replacement of Lenders.................................. 59
ARTICLE III REPRESENTATIONS AND WARRANTIES............................... 60
Section 3.1 Financial Condition..................................... 60
Section 3.2 No Change............................................... 61
Section 3.3 Corporate Existence; Compliance with Law................ 61
Section 3.4 Corporate Power; Authorization; Enforceable
Obligations............................................. 61
Section 3.5 No Legal Bar; No Default................................ 62
Section 3.6 No Material Litigation.................................. 62
Section 3.7 Investment Company Act; etc............................. 62
Section 3.8 Margin Regulations...................................... 62
Section 3.9 ERISA................................................... 63
Section 3.10 Environmental Matters................................... 63
Section 3.11 Use of Proceeds......................................... 64
Section 3.12 Subsidiaries; Joint Ventures; Partnerships.............. 65
Section 3.13 Ownership............................................... 65
Section 3.14 Indebtedness............................................ 65
Section 3.15 Taxes................................................... 65
Section 3.16 Intellectual Property Rights............................ 66
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Section 3.17 Solvency................................................ 67
Section 3.18 Investments............................................. 67
Section 3.19 Location of Collateral.................................. 67
Section 3.20 No Burdensome Restrictions.............................. 67
Section 3.21 Brokers' Fees........................................... 67
Section 3.22 Labor Matters........................................... 68
Section 3.23 Accuracy and Completeness of Information................ 68
Section 3.24 Material Contracts...................................... 68
Section 3.25 Insurance............................................... 69
Section 3.26 Security Documents...................................... 69
Section 3.27 Classification of Senior Indebtedness................... 69
Section 3.28 Anti-Terrorism Laws..................................... 69
Section 3.29 Compliance with OFAC Rules and Regulations.............. 69
Section 3.30 Compliance with FCPA.................................... 70
Section 3.31 Consent; Governmental Authorizations.................... 70
ARTICLE IV CONDITIONS PRECEDENT.......................................... 70
Section 4.1 Conditions to Closing Date.............................. 70
Section 4.2 Conditions to All Extensions of Credit.................. 75
ARTICLE V AFFIRMATIVE COVENANTS.......................................... 76
Section 5.1 Financial Statements.................................... 77
Section 5.2 Certificates; Other Information......................... 78
Section 5.3 Payment of Taxes and Other Obligations.................. 79
Section 5.4 Conduct of Business and Maintenance of Existence........ 80
Section 5.5 Maintenance of Property; Insurance...................... 80
Section 5.6 Inspection of Property; Books and Records; Discussions.. 81
Section 5.7 Notices................................................. 81
Section 5.8 Environmental Laws...................................... 82
Section 5.9 Financial Covenants..................................... 83
Section 5.10 Additional Guarantors................................... 84
Section 5.11 Compliance with Law..................................... 84
Section 5.12 Pledged Assets.......................................... 84
Section 5.13 Federal Assignment of Claims Act........................ 85
Section 5.14 Landlord Waivers........................................ 85
Section 5.15 Post-Closing Requirements; Further Assurances........... 85
ARTICLE VI NEGATIVE COVENANTS............................................ 86
Section 6.1 Indebtedness............................................ 86
Section 6.2 Liens................................................... 88
Section 6.3 Nature of Business...................................... 88
Section 6.4 Consolidation, Merger, Sale or Purchase of Assets, etc.. 89
Section 6.5 Advances, Investments and Loans......................... 90
Section 6.6 Transactions with Affiliates............................ 90
Section 6.7 Ownership of Subsidiaries; Restrictions................. 90
Section 6.8 Corporate Changes; Material Contracts................... 91
Section 6.9 Limitation on Restricted Actions........................ 91
Section 6.10 Restricted Payments..................................... 91
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Section 6.11 Amendment of Subordinated Debt.......................... 92
Section 6.12 Sale Leasebacks......................................... 92
Section 6.13 No Further Negative Pledges............................. 92
Section 6.14 Account Control Agreements; Additional Bank Accounts.... 93
ARTICLE VII EVENTS OF DEFAULT............................................ 93
Section 7.1 Events of Default....................................... 93
Section 7.2 Acceleration; Remedies.................................. 96
ARTICLE VIII THE ADMINISTRATIVE AGENT.................................... 97
Section 8.1 Appointment............................................. 97
Section 8.2 Delegation of Duties.................................... 97
Section 8.3 Exculpatory Provisions.................................. 98
Section 8.4 Reliance by Administrative Agent........................ 98
Section 8.5 Notice of Default....................................... 99
Section 8.6 Non-Reliance on Administrative Agent and Other Lenders.. 99
Section 8.7 Indemnification......................................... 99
Section 8.8 Administrative Agent in Its Individual Capacity......... 100
Section 8.9 Successor Administrative Agent.......................... 100
Section 8.10 Other Agents............................................ 101
Section 8.11 Nature of Duties........................................ 101
Section 8.12 Releases................................................ 101
ARTICLE IX MISCELLANEOUS................................................. 101
Section 9.1 Amendments, Waivers and Release of Collateral........... 101
Section 9.2 Notices................................................. 104
Section 9.3 No Waiver; Cumulative Remedies.......................... 106
Section 9.4 Survival of Representations and Warranties.............. 106
Section 9.5 Payment of Expenses and Taxes........................... 106
Section 9.6 Successors and Assigns; Participations; Purchasing
Lenders................................................. 107
Section 9.7 Adjustments; Set-off.................................... 111
Section 9.8 Table of Contents and Section Headings.................. 112
Section 9.9 Counterparts............................................ 112
Section 9.10 Effectiveness........................................... 112
Section 9.11 Severability............................................ 112
Section 9.12 Integration............................................. 112
Section 9.13 Governing Law........................................... 113
Section 9.14 Consent to Jurisdiction and Service of Process.......... 113
Section 9.15 Confidentiality......................................... 113
Section 9.16 Acknowledgments......................................... 114
Section 9.17 Waivers of Jury Trial; Waiver of Consequential Damages.. 115
Section 9.18 Patriot Act Notice...................................... 115
Section 9.19 Resolution of Drafting Ambiguities...................... 115
ARTICLE X GUARANTY....................................................... 115
Section 10.1 The Guaranty............................................ 115
Section 10.2 Bankruptcy.............................................. 116
Section 10.3 Nature of Liability..................................... 116
Section 10.4 Independent Obligation.................................. 117
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Section 10.5 Authorization........................................... 117
Section 10.6 Reliance................................................ 117
Section 10.7 Waiver.................................................. 118
Section 10.8 Limitation on Enforcement............................... 119
Section 10.9 Confirmation of Payment................................. 119
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SCHEDULES
Schedule 1.1(a) Permitted Acquisition
Schedule 1.1(b) Investments
Schedule 1.1(c) Liens
Schedule 1.1(d) Consolidated EBITDA
Schedule 1.1(e) Existing Letters of Credit
Schedule 3.3 Jurisdictions of Organization and Qualification
Schedule 3.6 Material Litigation
Schedule 3.9 ERISA Matters
Schedule 3.10 Material Environmental Matters
Schedule 3.12 Subsidiaries
Schedule 3.15 Taxes
Schedule 3.16 Material Intellectual Property
Schedule 3.19(a) Locations
Schedule 3.19(b) Chief Executive Offices
Schedule 3.21 Brokers' Fees
Schedule 3.22 Labor Matters
Schedule 3.24 Material Contracts
Schedule 3.25 Insurance
Schedule 6.1(b) Indebtedness
Schedule 7.1(d) Indebtedness Cross-Default
Schedule 7.1(f) Bankruptcy Default
EXHIBITS
Exhibit 1.1(a) Form of Account Designation Letter
Exhibit 1.1(b) Form of Assignment Agreement
Exhibit 1.1(c) Form of Account Control Agreement
Exhibit 1.1(d) Form of Joinder Agreement
Exhibit 1.1(e) Form of Notice of Borrowing
Exhibit 1.1(f) Form of Notice of Conversion/Extension
Exhibit 2.1(a) Form of Funding Indemnity Letter
Exhibit 2.1(e) Form of Revolving Note
Exhibit 2.2(d) Form of Term Loan A Note
Exhibit 2.2A(e) Form of Interim Term Loan Note
Exhibit 2.4(d) Form of Swingline Note
Exhibit 2.17 Form of Tax Exempt Certificate
Exhibit 4.1(b) Form of Officer's Certificate
Exhibit 4.1(d) Form of Landlord Waiver
Exhibit 4.1(g) Form of Solvency Certificate
Exhibit 4.1(p) Form of Financial Condition Certificate
Exhibit 4.1(r) Form of Patriot Act Certificate
Exhibit 5.2(b) Form of Officer's Compliance Certificate
Exhibit 5.2(g) Form of Permitted Acquisition Certificate
v
CREDIT AGREEMENT, dated as of May 25, 2006 among ARMOR HOLDINGS, INC., a
Delaware corporation (the "Borrower"), the Material Domestic Subsidiaries of the
Borrower as are, or may from time to time become parties to this Agreement, as
Guarantors, the several banks and other financial institutions as are, or may
from time to time become parties to this Agreement (each a "Lender" and,
collectively, the "Lenders"), and WACHOVIA BANK, NATIONAL ASSOCIATION, a
national banking association, as administrative agent for the Lenders hereunder
(in such capacity, the "Administrative Agent" or the "Agent").
WITNESSETH:
WHEREAS, the Credit Parties have requested that the Lenders make loans and
other financial accommodations to the Credit Parties in the amount of up to
$825,000,000, as more particularly described herein; and
WHEREAS, the Lenders have agreed to make such loans and other financial
accommodations to the Credit Parties on the terms and conditions contained
herein.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the parties hereto, such parties
hereby agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.1 DEFINED TERMS.
As used in this Agreement, terms defined in the preamble to this Agreement
have the meanings therein indicated, and the following terms have the following
meanings:
"ABR Default Rate" shall have the meaning set forth in Section 2.8.
"Account Control Agreement" shall mean (a) an agreement among a Credit
Party, a depository institution and the Administrative Agent that is either
substantially in the form of Exhibit 1.1(c) or in a form reasonably acceptable
to the Administrative Agent or (b) an agreement among a Credit Party, a
securities intermediary and the Administrative Agent in a form reasonably
acceptable to the Administrative Agent, in each case which provides the
Administrative Agent with "control" (as such term is used in Article 9 of the
Uniform Commercial Code) over the deposit or securities account(s) described
therein, as the same may be amended, modified, restated, amended and restated,
extended, replaced, increased or otherwise supplemented from time to time.
ARMOR HOLDINGS, INC.
CREDIT AGREEMENT
"Account Designation Letter" shall mean the Account Designation Letter
dated as of the Closing Date from the Borrower to the Administrative Agent in
substantially the form attached hereto as Exhibit 1.1(a).
"Acquired Company" shall mean a collective reference to Xxxxxxx & Xxxxxxxxx
Services, Inc., a Texas corporation, and its Subsidiaries.
"Acquisition" shall mean the acquisition of the outstanding Capital Stock
of Xxxxxxx & Xxxxxxxxx Services, Inc., a Texas corporation, by the Borrower.
"Acquisition Documents" shall mean (a) that certain Agreement and Plan of
Merger dated as of February 27, 2006 by and among the Borrower, Xxxxxxx &
Xxxxxxxxx Services, Inc., a Texas corporation, and Xxxxxxx Acquisition Corp. and
(b) any other material agreement, document or instrument executed in connection
with the foregoing, in each case as amended, modified, restated, amended and
restated, or supplemented from time to time.
"Additional Credit Party" shall mean each Person that becomes a Guarantor
by execution of a Joinder Agreement in accordance with Section 5.10.
"Administrative Agent" or "Agent" shall have the meaning set forth in the
first paragraph of this Agreement and shall include any successors in such
capacity.
"Administrative Details Form" shall mean, with respect to any Lender, a
document containing such Lender's contact information for purposes of notices
provided under this Agreement and account details for purposes of payments made
to such Lender under this Agreement.
"Affiliate" shall mean as to any Person, any other Person that, directly or
indirectly, is in control of, is controlled by, or is under common control with,
such Person. For purposes of this definition, a Person shall be deemed to be
"controlled by" a Person if such Person possesses, directly or indirectly, power
either (a) to vote 20% or more of the Capital Stock having ordinary voting power
for the election of directors of such Person or (b) to direct or cause the
direction of the management and policies of such Person whether by contract or
otherwise.
"Agreement" or "Credit Agreement" shall mean this Credit Agreement, as
amended, modified, restated, amended and restated, extended, replaced, increased
or supplemented from time to time in accordance with its terms.
"Alternate Base Rate" shall mean, for any day, a rate per annum equal to
the greater of (a) the Prime Rate in effect on such day and (b) the Federal
Funds Effective Rate in effect on such day plus 1/2 of 1%. For purposes hereof:
"Prime Rate" shall mean, at any time, the rate of interest per annum publicly
announced or otherwise identified from time to time by Wachovia at its principal
office in Charlotte, North Carolina as its prime rate. Each change in the Prime
Rate shall be effective as of the opening of business on the day such change in
the Prime Rate occurs. The parties hereto acknowledge that the rate announced
publicly by Wachovia as its Prime Rate is an index or base rate and shall not
necessarily be its lowest or best rate charged to its
2
customers or other banks; and "Federal Funds Effective Rate" shall mean, for any
day, the weighted average of the rates on overnight federal funds transactions
with members of the Federal Reserve System arranged by federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New
York, or, if such rate is not so published on the next succeeding Business Day,
the average of the quotations for the day of such transactions received by the
Administrative Agent from three federal funds brokers of recognized standing
reasonably selected by it. If for any reason the Administrative Agent shall have
determined (which determination shall be conclusive in the absence of manifest
error) that it is unable to ascertain the Federal Funds Effective Rate, for any
reason, including the inability or failure of the Administrative Agent to obtain
sufficient quotations in accordance with the terms above, the Alternate Base
Rate shall be determined without regard to clause (b) of the first sentence of
this definition, as appropriate, until the circumstances giving rise to such
inability no longer exist. Any change in the Alternate Base Rate due to a change
in the Prime Rate or the Federal Funds Effective Rate shall be effective on the
opening of business on the date of such change.
"Alternate Base Rate Loans" shall mean Loans that bear interest at an
interest rate based on the Alternate Base Rate.
"Applicable Percentage" shall mean, for any day, the rate per annum set
forth below opposite the applicable level then in effect (based on the Total
Leverage Ratio), it being understood that the Applicable Percentage for (a)
Revolving Loans that are Alternate Base Rate Loans shall be the percentage set
forth under the column "Base Rate Margin", (b) Revolving Loans that are LIBOR
Rate Loans shall be the percentage set forth under the column "LIBOR Margin",
(c) that portion of the Term Loan comprised of Alternate Base Rate Loans shall
be the percentage set forth under the column "Base Rate Margin", (d) that
portion of the Term Loan comprised of LIBOR Rate Loans shall be the percentage
set forth under the column "LIBOR Margin" and (e) the Unused Fee shall be the
percentage set forth under the column "Unused Fee":
APPLICABLE PERCENTAGE
Total Leverage LIBOR Base Rate
Level Ratio Margin Margin Unused Fee
----- ------------------ ------ --------- ----------
I > = 3.75x to 1.0 1.500% 0.250% 0.300%
II > = 2.75x to 1.0 1.250% 0.000% 0.250%
but < 3.75x to 1.0
III > = 1.75x to 1.0 1.000% 0.000% 0.225%
but < 2.75x to 1.0
IV < 1.75x to 1.0 0.875% 0.000% 0.200%
The Applicable Percentage shall, in each case, be determined and adjusted
quarterly on the date five (5) Business Days after the date on which the
Administrative Agent has received from the Borrower the quarterly financial
information (in the case of the first three fiscal quarters of the Borrower's
fiscal year), the annual financial information (in the case of the fourth fiscal
quarter of the Borrower's fiscal year) and the certifications required to be
delivered to the Administrative Agent and the Lenders in accordance with the
provisions of Sections 5.1(a), 5.1(b) and 5.2(b) (each an "Interest
Determination Date"). Such Applicable Percentage shall be
3
effective from such Interest Determination Date until the next such Interest
Determination Date. After the Closing Date, if the Credit Parties shall fail to
provide the financial information or certifications in accordance with the
provisions of Sections 5.1(a), 5.1(b) and 5.2(b), the Applicable Percentage
shall, on the date five (5) Business Days after the date by which the Credit
Parties were so required to provide such financial information or certifications
to the Administrative Agent and the Lenders, be based on Level I until such time
as such information or certifications are provided, whereupon the Applicable
Percentage shall be determined by the then current Total Leverage Ratio.
Notwithstanding the foregoing, the Applicable Percentage shall be as set forth
above opposite Level II until the first Interest Determination Date to occur
following two complete fiscal quarters after the Closing Date.
"Approved Fund" shall mean, with respect to any Lender, any fund or trust
or entity that invests in commercial bank loans in the ordinary course of
business and is advised or managed by (a) such Lender, (b) an Affiliate of such
Lender, (c) any other Lender or any Affiliate thereof or (d) the same investment
advisor as any Person described in clauses (a) - (c).
"Arranger" shall mean Wachovia Capital Markets, LLC, together with its
successors and assigns.
"Asset Disposition" shall mean the disposition of any or all of the assets
(including, without limitation, the Capital Stock of a Subsidiary or any
ownership interest in a joint venture) of any Credit Party or any Subsidiary
whether by sale, lease, transfer or otherwise, in a single transaction or in a
series of transactions. The term "Asset Disposition" shall not include (a) the
sale, lease, transfer or other disposition of assets permitted by Subsections
6.4(a)(i) through (v), or (b) any Equity Issuance.
"Assignment Agreement" shall mean an Assignment Agreement, in substantially
the form of Exhibit 1.1(b).
"Bankruptcy Code" shall mean the Bankruptcy Code in Title 11 of the United
States Code, as amended, modified, succeeded or replaced from time to time.
"Bankruptcy Event" shall mean any of the events described in Section
7.1(f).
"Borrower" shall have the meaning set forth in the first paragraph of this
Agreement.
"Borrowing Date" shall mean, in respect of any Loan, the date such Loan is
made.
"Business" shall have the meaning set forth in Section 3.10.
"Business Day" shall mean any day other than a Saturday, Sunday or other
day on which commercial banks in Charlotte, North Carolina or New York, New York
are authorized or required by law to close; provided, however, that when used in
connection with a rate determination, borrowing or payment in respect of a LIBOR
Rate Loan, the term "Business Day" shall also exclude any day on which banks in
London, England are not open for dealings in Dollar deposits in the London
interbank market.
4
"Capital Lease" shall mean any lease of property, real or personal, the
obligations with respect to which are required to be capitalized on a balance
sheet of the lessee in accordance with GAAP.
"Capital Lease Obligations" shall mean the capitalized lease obligations
relating to a Capital Lease determined in accordance with GAAP.
"Capital Stock" shall mean (a) in the case of a corporation, capital stock,
(b) in the case of an association or business entity, any and all shares,
interests, participations, equity rights or other equity equivalents (however
designated) of capital stock, (c) in the case of a partnership, partnership
interests (whether general or limited), (d) in the case of a limited liability
company, membership interests and (e) any other interest or participation that
confers on a Person the right to receive a share of the profits and losses of,
or distributions of assets of, the issuing Person.
"Cash Equivalents" shall mean (a) securities with maturities of 180 days or
less from the date of acquisition issued or fully guaranteed or insured by the
United States government or agency thereof, (b) certificates of deposit and
eurodollar time deposits with maturities of ninety-one (91) days or less from
the date of acquisition and overnight bank deposits of any Lender or of any
commercial bank having capital and surplus in excess of $500,000,000, (c)
repurchase obligations of any Lender or of any commercial bank satisfying the
requirements of clause (b) of this definition, having a term of not more than
seven (7) days with respect to securities issued or fully guaranteed or insured
by the United States government, (d) commercial paper of a domestic issuer rated
at least A-1 or the equivalent thereof from S&P or P-1 or the equivalent thereof
by Xxxxx'x and in either case maturing within ninety (90) days after the day of
acquisition, (e) securities with maturities of ninety (90) days or less from the
date of acquisition issued or fully guaranteed by any state, commonwealth or
territory of the United States, by any political subdivision or taxing authority
of any such state, commonwealth or territory or by any foreign government, the
securities of which state, commonwealth, territory, political subdivision,
taxing authority or foreign government (as the case may be) are rated at least
"A" by S&P or "A" by Xxxxx'x, (f) securities with maturities of ninety (90) days
or less from the date of acquisition backed by standby letters of credit issued
by any Lender or any commercial bank satisfying the requirements of clause (b)
of this definition, (g) bonds, debentures, notes or other evidence of
indebtedness issued in the auction rate market with a reset of less than
ninety-one (91) days; provided that such bonds, debentures, notes or other
evidence of indebtedness, as applicable, are rated at least "AAA" (or
equivalent) by at least two nationally recognized rating services, (h) money
market, mutual or similar funds which invest exclusively in assets satisfying
the requirements of clauses (a) through (g) of this definition and (i) shares of
money market, mutual or similar funds (including 3C-7 funds) which are rated at
least "AAA" (or equivalent) by at least two nationally recognized rating
services.
"Change of Control" shall mean at any time the occurrence of any of the
following events: (a) any "person" or "group" (as such terms are used in Section
13(d) and 14(d) of the Exchange Act), is or becomes the "beneficial owner" (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a person
shall be deemed to have "beneficial ownership" of all securities that such
person has the right to acquire, whether such right is exercisable immediately
5
or within sixty (60) days), directly or indirectly, of 35% or more of the then
outstanding Voting Stock of the Borrower; or (b) the replacement of a majority
of the Board of Directors of the Borrower over a two-year period from the
directors who constituted the Board of Directors at the beginning of such
period, and such replacement shall not have been approved by a vote of at least
a majority of the Board of Directors of the Borrower then still in office who
either were members of such Board of Directors at the beginning of such period
or whose election as a member of such Board of Directors was previously so
approved.
"Closing Date" shall mean the date of this Agreement.
"Code" shall mean the Internal Revenue Code of 1986, as amended from time
to time.
"Collateral" shall mean a collective reference to the collateral which is
identified in, and at the relevant time will be covered by, the Security
Documents and any other property or assets of a Credit Party, whether tangible
or intangible and whether real or personal, that may from time to time secure
the Credit Party Obligations.
"Commitment" shall mean the Revolving Commitment, the LOC Commitment, the
Term Loan A Commitment, the Interim Term Loan Commitment and the Swingline
Commitment, individually or collectively, as appropriate.
"Commitment Percentage" shall mean the Revolving Commitment Percentage
and/or the Term Loan A Commitment Percentage, as appropriate.
"Commitment Period" shall mean (a) with respect to Revolving Loans and
Swingline Loans, the period from and including the Closing Date to but excluding
the Revolver Maturity Date and (b) with respect to Letters of Credit, the period
from and including the Closing Date to but excluding the date that is five (5)
Business Days prior to the Revolver Maturity Date.
"Commonly Controlled Entity" shall mean an entity, whether or not
incorporated, which is under common control with a Credit Party within the
meaning of Section 4001 of ERISA or is part of a group that includes a Credit
Party and that is treated as a single employer under Section 414 of the Code.
"Consolidated" shall mean, when used with reference to financial statements
or financial statement items of the Borrower and its Subsidiaries or any other
Person, such statements or items on a consolidated basis in accordance with the
consolidation principles of GAAP.
"Consolidated Capital Expenditures" shall mean, as of any date of
determination for the four consecutive fiscal quarter period ending on such
date, all expenditures of the Borrower and its Subsidiaries on a Consolidated
basis for such period that in accordance with GAAP would be classified as
capital expenditures, including, without limitation, Capital Lease Obligations.
The term "Consolidated Capital Expenditures" shall not include (a) any Permitted
Acquisition or (b) capital expenditures in respect of the reinvestment of
proceeds from Recovery Events in accordance with the terms of Section
2.7(b)(vi).
6
"Consolidated EBITDA" shall mean, as of any date of determination for the
four consecutive fiscal quarter period ending on such date, without duplication,
(a) Consolidated Net Income for such period plus (b) the sum of the following,
without duplication, to the extent deducted in calculating Consolidated Net
Income: (i) Consolidated Net Interest Expense for such period, (ii) tax expense
(including, without limitation, any federal, state, local and foreign income and
similar taxes) of the Borrower and its Subsidiaries for such period, (iii)
depreciation and amortization expense of the Borrower and its Subsidiaries for
such period, (iv) other non-cash expenses (including accrued but unpaid
expenses) of the Borrower and its Subsidiaries for such period in accordance
with GAAP or otherwise as mutually agreed upon by the Borrower and the
Administrative Agent, (v) integration charges (as defined in the Borrower's
public financial statements), which may be comprised of (A) transaction fees or
expenses associated with contemplated or completed Permitted Acquisitions, (B)
expenses related to the integration activities of Permitted Acquisitions or (C)
other similar charges as mutually agreed upon by the Borrower and the
Administrative Agent, (vi) expenses related to performance-based compensation of
key executives pursuant to certain professional services agreements and (vii)
other non-operating expenses as classified on the Borrower's financial
statements in "other expense (income), net" minus (c) non-cash charges
previously added back to Consolidated Net Income in determining Consolidated
EBITDA to the extent such non-cash charges have become cash charges during such
period minus (d) any other non-recurring cash or non-cash gains during such
period minus (e) other non-operating income as classified on the Borrower's
financial statements in "other expense (income), net"; provided that if, during
any four consecutive fiscal quarter period for which Consolidated EBITDA is to
be calculated, any business was acquired by the Borrower or any of its
Subsidiaries, then Consolidated EBITDA shall be increased by an amount equal to
the sum of (A) the Consolidated EBITDA of such business (calculated without
giving effect to the proviso to this definition as if such business were the
Borrower) for the four (4) consecutive fiscal quarters of such business most
recently ended, and (B) any adjustments certified to the Administrative Agent by
the chief financial officer of the Borrower and reasonably agreed to by the
Administrative Agent that would, in the reasonable determination of the
Borrower, satisfy the requirements of Rule 1102(a) of Regulation S-X of the
Securities Act of 1933, as amended, as if included in a registration statement
filed with the Securities and Exchange Commission; provided that,
notwithstanding the foregoing, Consolidated EBITDA for the fiscal quarters
ending June 30, 2005, September 30, 2005, December 31, 2005 and March 31, 2006
shall be the amounts corresponding to such fiscal quarters set forth on Schedule
1.1(d).
"Consolidated Funded Debt" shall mean, on any date of calculation, Funded
Debt of the Borrower and its Subsidiaries on a Consolidated basis.
"Consolidated Interest Expense" shall mean, as of any date of determination
for the four consecutive fiscal quarter period ending on such date, all interest
expense (excluding amortization of debt discount and premium) for such period of
the Borrower and its Subsidiaries on a Consolidated basis. Notwithstanding the
foregoing, for purposes of calculating Consolidated Interest Expense for the
fiscal quarters ending June 30, 2006, September 30, 2006, and December 31, 2006,
Consolidated Interest Expense shall be annualized during such fiscal quarters
such that (a) for the calculation of Consolidated Interest Expense as of June
30, 2006, Consolidated Interest Expense for the fiscal quarter then ending will
be multiplied by four (4), (b) for the calculation of Consolidated Interest
Expense as of September 30, 2006, Consolidated
7
Interest Expense for the two fiscal quarter period then ending will be
multiplied by two (2) and (c) for the calculation of Consolidated Interest
Expense as of December 31, 2006, Consolidated Interest Expense for the three
fiscal quarter period then ending will be multiplied by one and one-third (1
1/3).
"Consolidated Net Income" shall mean, as of any date of determination for
the four consecutive fiscal quarter period ending on such date, the net income
before extraordinary gains and/or losses of the Borrower and its Subsidiaries on
a Consolidated basis for such period.
"Consolidated Net Interest Expense" shall mean, as of any date of
determination for the four consecutive fiscal quarter period ending on such
date, all interest expense (net of interest income) for such period of the
Borrower and its Subsidiaries on a Consolidated basis.
"Consolidated Total Assets" shall mean, as of any date of determination,
the total assets of the Borrower and its Subsidiaries on a consolidated basis,
as determined in accordance with GAAP.
"Contractual Obligation" shall mean, as to any Person, any provision of any
security issued by such Person or of any contract, agreement, instrument or
undertaking to which such Person is a party or by which it or any of its
property is bound.
"Copyright Licenses" shall mean any agreement, whether written or oral,
providing for the grant by or to a Person of any right under any Copyright,
including, without limitation, any thereof referred to in Schedule 3.16.
"Copyrights" shall mean all copyrights of the Borrower and its Subsidiaries
in all Works, now existing or hereafter created or acquired, all registrations
and recordings thereof, and all applications in connection therewith, including,
without limitation, registrations, recordings and applications in the United
States Copyright Office or in any similar office or agency of the United States,
any state thereof or any other country or any political subdivision thereof, or
otherwise, including, without limitation, any thereof referred to in Schedule
3.16 and all renewals thereof.
"Credit Documents" shall mean this Agreement, each of the Notes, any
Joinder Agreement, the Letters of Credit, LOC Documents and the Security
Documents and all other agreements, documents, certificates and instruments
delivered to the Administrative Agent or any Lender by any Credit Party in
connection therewith (other than any agreement, document, certificate or
instrument related to a Hedging Agreement).
"Credit Party" shall mean any of the Borrower or the Guarantors.
"Credit Party Obligations" shall mean, without duplication, (a) all of the
obligations, indebtedness and liabilities of the Credit Parties to the Lenders
(including the Issuing Lender) and the Administrative Agent, whenever arising,
under this Agreement, the Notes or any of the other Credit Documents, including
principal, interest, fees, reimbursements and indemnification obligations and
other amounts (including, but not limited to, any interest accruing after the
8
occurrence of a filing of a petition of bankruptcy under the Bankruptcy Code
with respect to any Credit Party, regardless of whether such interest is an
allowed claim under the Bankruptcy Code) and (b) solely for purposes of the
Security Documents and the Guaranty, all liabilities and obligations, whenever
arising, owing from any Credit Party or any of their Subsidiaries to any Hedging
Agreement Provider arising under any Secured Hedging Agreement.
"Debt Issuance" shall mean the issuance of any Indebtedness by any Credit
Party or any of its Subsidiaries (excluding any Equity Issuance or any
Indebtedness of any Credit Party and its Subsidiaries permitted to be incurred
pursuant to Sections 6.1(a)-(l) hereof).
"Default" shall mean any of the events specified in Section 7.1, whether or
not any requirement for the giving of notice or the lapse of time, or both, or
any other condition, has been satisfied.
"Defaulting Lender" shall mean, at any time, any Lender that, at such time
(a) has failed to make a Loan required pursuant to the terms of this Agreement
or failed to or fund a Participation Interest in accordance with the terms of
this Agreement, (b) has failed to pay to the Administrative Agent or any Lender
an amount owed by such Lender pursuant to the terms of this Agreement and such
default remains uncured, or (c) has been deemed insolvent or has become subject
to a bankruptcy or insolvency proceeding or to a receiver, trustee or similar
official.
"Dollars" and "$" shall mean dollars in lawful currency of the United
States of America.
"Domestic Lending Office" shall mean, initially, the office of each Lender
designated as such Lender's Domestic Lending Office shown in such Lender's
Administrative Details Form; and thereafter, such other domestic office of such
Lender as such Lender may from time to time specify to the Administrative Agent
and the Borrower as the domestic office of such Lender at which Alternate Base
Rate Loans of such Lender are to be made.
"Domestic Subsidiary" shall mean any Subsidiary that is organized and
existing under the laws of the United States or any state or commonwealth
thereof or under the laws of the District of Columbia.
"Environmental Laws" shall mean any and all applicable foreign, federal,
state, local or municipal laws, rules, orders, regulations, statutes,
ordinances, codes, decrees, requirements of any Governmental Authority or other
Requirement of Law (including common law) regulating, relating to or imposing
liability or standards of conduct relating to pollution and the protection of
the environment, as now or may at any time be in effect during the term of this
Agreement.
"Equity Issuance" shall mean any issuance by any Credit Party or any
Subsidiary to any Person which is not a Credit Party or a Subsidiary of (a)
shares or interests of its Capital Stock, (b) any shares or interests of its
Capital Stock pursuant to the exercise of options or warrants or similar rights,
(c) any shares or interests of its Capital Stock pursuant to the conversion of
any debt securities to equity, (d) warrants or options or similar rights that
are exercisable or convertible into shares or interests of its Capital Stock.
The term "Equity Issuance" shall not
9
include (i) any equity issued constituting consideration for a Permitted
Acquisition, (ii) any Asset Disposition, (iii) any Debt Issuance, (iv) proceeds
relating to the exercise of stock options or proceeds received in connection
with the granting of put options with respect to Capital Stock of the Credit
Parties or (v) put options and stock options.
"ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time.
"Eurodollar Reserve Percentage" shall mean for any day, the percentage
(expressed as a decimal and rounded upwards, if necessary, to the next higher
1/100th of 1%) which is in effect for such day as prescribed by the Board of
Governors of the Federal Reserve System (or any successor) for determining the
maximum reserve requirement (including without limitation any basic,
supplemental or emergency reserves) in respect of Eurocurrency liabilities, as
defined in Regulation D of such Board as in effect from time to time, or any
similar category of liabilities for a member bank of the Federal Reserve System
in New York City.
"Event of Default" shall mean any of the events specified in Section 7.1;
provided, however, that any requirement for the giving of notice or the lapse of
time, or both, or any other condition, has been satisfied.
"Excess Cash Flow" shall mean, with respect to any fiscal year of the
Borrower, for the Borrower and its Subsidiaries on a Consolidated basis, an
amount equal to (a) operating cash flow for such period as set forth in the
audited financial statements of the Borrower for such fiscal year minus (b)
Consolidated Capital Expenditures for such period minus (c) optional prepayments
of the Term Loan and of the Revolving Loans (to the extent accompanied by a
corresponding permanent reduction of the Revolving Commitments) minus (d) any
net share settlement cash payment made during such period with respect to the
Senior Subordinated Convertible Notes to the extent permitted pursuant to
Section 6.10(e).
"Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.
"Excluded Subsidiaries" shall mean any entity mutually agreed upon by the
Borrower and the Administrative Agent and each of the following entities:
Carturo Inc., Cyconic International Training Services, Inc., Arcolex, LLC,
Dynasum, LLC, High Gulf Services, LLC, Mistron, LLC and Spartegic, LLC.
"Existing Letters of Credit" shall mean the letters of credit described by
date of issuance, amount, purpose and the date of expiry on Schedule 1.1(e)
hereto.
"Extension of Credit" shall mean, as to any Lender, the making of a Loan by
such Lender or the issuance of, or participation in, a Letter of Credit or
Swingline Loan by such Lender.
"Federal Funds Effective Rate" shall have the meaning set forth in the
definition of "Alternate Base Rate".
10
"Fee Letter" shall mean the letter agreement dated February 23, 2006,
addressed to the Borrower from Wachovia and the Arranger, as amended, modified,
restated, amended and restated, otherwise supplemented.
"Foreign Subsidiary" shall mean any Subsidiary that is not a Domestic
Subsidiary.
"Funded Debt" shall mean, with respect to any Person, without duplication,
(a) all obligations of such Person for borrowed money, (b) all obligations of
such Person evidenced by bonds, debentures, notes or similar instruments, or
upon which interest payments are customarily made, (c) all obligations of such
Person under conditional sale or other title retention agreements relating to
property purchased by such Person (other than customary reservations or
retentions of title under agreements with suppliers entered into in the ordinary
course of business) which would appear as liabilities on a balance sheet of such
Person prepared in accordance with GAAP, (d) all obligations (including, without
limitation, earnout obligations to the extent such earnout obligations are
required by GAAP to be set forth as a liability on the balance sheet of such
Person) of such Person incurred, issued or assumed as the deferred purchase
price of property or services purchased by such Person which would appear as
liabilities on a balance sheet of such Person prepared in accordance with GAAP,
(e) the principal portion of all obligations of such Person under Capital
Leases, (f) the outstanding amount of all letters of credit issued or bankers'
acceptances facilities created for the account of such Person and, without
duplication, all drafts drawn thereunder (to the extent unreimbursed), (g) all
preferred Capital Stock or other equity interests issued by such Person and
which by the terms thereof could be (at the request of the holders thereof or
otherwise) subject to mandatory sinking fund payments, redemption or other
acceleration, (h) the principal balance outstanding under any synthetic lease,
tax retention operating lease, off-balance sheet loan or similar off-balance
sheet financing product, (i) all obligations of such Person under Hedging
Agreements, excluding any portion thereof which would be accounted for as
interest expense under GAAP, (j) all Indebtedness of others of the type
described in clauses (a) through (i) hereof secured by (or for which the holder
of such Indebtedness has an existing right, contingent or otherwise, to be
secured by) any Lien on, or payable out of the proceeds of production from,
property owned or acquired by such Person, whether or not the obligations
secured thereby have been assumed, (k) all Guaranty Obligations of such Person
with respect to Indebtedness of another Person of the type described in clauses
(a) through (i) hereof, and (l) all Indebtedness of the type described in
clauses (a) through (i) hereof of any partnership or unincorporated joint
venture in which such Person is a general partner or a joint venturer (unless
such Funded Debt is made non-recourse to such Person); provided, however, that
Funded Debt shall not include (i) Indebtedness among the Borrower and its
Subsidiaries or among the Subsidiaries of the Borrower to the extent eliminated
on a Consolidated basis in accordance with GAAP and (ii) trade payables incurred
in the ordinary course of business and due within six months of the incurrence
thereof.
"GAAP" shall mean generally accepted accounting principles in effect in the
United States of America applied on a consistent basis, subject, however, in the
case of determination of compliance with the financial covenants set out in
Section 5.9, to the provisions of Section 1.3.
"Government Acts" shall have the meaning set forth in Section 2.18.
11
"Government Contract" shall mean any contract entered into between the
Borrower or any of its Subsidiaries and the government of the United States of
America, or any department, agency, public corporation, or other instrumentality
or agent thereof or any state government or any department, agency or
instrumentality or agent thereof providing for the sale of products or services
to a Governmental Authority.
"Governmental Authority" shall mean any nation or government, any state or
other political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative powers or functions of or
pertaining to government.
"Guarantor" shall mean each of the Material Domestic Subsidiaries of the
Borrower, other than the Excluded Subsidiaries, and such other Material Domestic
Subsidiaries of the Borrower as may from time to time become a party hereto.
"Guaranty" shall mean the guaranty of the Guarantors set forth in Article
X.
"Guaranty Obligations" shall mean, with respect to any Person, without
duplication, any obligations of such Person (other than endorsements in the
ordinary course of business of negotiable instruments for deposit or collection
and indemnification and hold-harmless agreements entered into in the ordinary
course of business) guaranteeing any Indebtedness of any other Person in any
manner, whether direct or indirect, and including without limitation any
obligation, whether or not contingent, (a) to purchase any such Indebtedness or
any property constituting security therefor, (b) to advance or provide funds or
other support for the payment or purchase of any such Indebtedness or to
maintain working capital, solvency or other balance sheet condition of such
other Person (including without limitation keep well agreements, maintenance
agreements, comfort letters or similar agreements or arrangements) for the
benefit of any holder of Indebtedness of such other Person, (c) to lease or
purchase property, securities or services primarily for the purpose of assuring
the holder of such Indebtedness, or (d) to otherwise assure or hold harmless the
holder of such Indebtedness against loss in respect thereof. The amount of any
Guaranty Obligation hereunder shall (subject to any limitations set forth
therein) be deemed to be an amount equal to the outstanding principal amount (or
maximum principal amount, if larger) of the Indebtedness in respect of which
such Guaranty Obligation is made.
"Hedging Agreement Provider" shall mean any Person that enters into a
Secured Hedging Agreement with a Credit Party or any of its Subsidiaries that is
permitted by Section 6.1(e) to the extent such Person is a Lender, an Affiliate
of a Lender or any other Person that was a Lender (or an Affiliate of a Lender)
at the time it entered into the Secured Hedging Agreement but has ceased to be a
Lender (or whose Affiliate has ceased to be a Lender) under the Credit
Agreement; provided, in the case of a Secured Hedging Agreement with a Person
who is no longer a Lender, such Person shall be considered a Hedging Agreement
Provider only through the stated maturity date (without extension or renewal) of
such Secured Hedging Agreement.
"Hedging Agreements" shall mean, with respect to any Person, any agreement
entered into to protect such Person against fluctuations in interest rates, or
currency or raw materials values, including, without limitation, any interest
rate swap, cap or collar agreement or similar arrangement between such Person
and one or more counterparties, any foreign currency
12
exchange agreement, currency protection agreements, commodity purchase or option
agreements or other interest or exchange rate hedging agreements.
"Indebtedness" shall mean, with respect to any Person, without duplication,
(a) all obligations of such Person for borrowed money, (b) all obligations of
such Person evidenced by bonds, debentures, notes or similar instruments, or
upon which interest payments are customarily made, (c) all obligations of such
Person under conditional sale or other title retention agreements relating to
property purchased by such Person (other than customary reservations or
retentions of title under agreements with suppliers entered into in the ordinary
course of business) which would appear as liabilities on a balance sheet of such
Person, (d) all obligations (including, without limitation, earnout obligations)
of such Person incurred, issued or assumed as the deferred purchase price of
property or services purchased by such Person which would appear as liabilities
on a balance sheet of such Person, (e) all obligations of such Person under
take-or-pay or similar arrangements or under commodities agreements, (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien on,
or payable out of the proceeds of production from, property owned or acquired by
such Person, whether or not the obligations secured thereby have been assumed,
(g) all Guaranty Obligations of such Person with respect to Indebtedness of
another Person, (h) the principal portion of all obligations of such Person
under Capital Leases plus any accrued interest thereon, (i) all net obligations
of such Person under Hedging Agreements, excluding any portion thereof which
would be accounted for as interest expense under GAAP, (j) the outstanding
amount of all letters of credit issued or bankers' acceptances facilities
created for the account of such Person and, without duplication, all drafts
drawn thereunder (to the extent unreimbursed), (k) all preferred Capital Stock
issued by such Person and which by the terms thereof could be (at the request of
the holders thereof or otherwise) subject to mandatory sinking fund payments,
redemption or other acceleration, (l) the principal balance outstanding under
any synthetic lease, tax retention operating lease, off-balance sheet loan or
similar off-balance sheet financing product plus any accrued interest thereon,
and (m) the Indebtedness of any partnership or unincorporated joint venture in
which such Person is a general partner or a joint venturer (unless such
Indebtedness is made non-recourse to such Person); provided that Indebtedness
shall not include trade payables incurred in the ordinary course of business and
due within six months of the incurrence thereof.
"Insolvency" shall mean, with respect to any Multiemployer Plan, the
condition that such Plan is insolvent within the meaning of such term as used in
Section 4245 of ERISA.
"Intellectual Property" shall mean, collectively, all Copyrights, Copyright
Licenses, Patents, Patent Licenses, Trademarks and Trademark Licenses of the
Borrower and its Subsidiaries, all goodwill associated therewith and all rights
to xxx for infringement thereof.
"Interest Coverage Ratio" shall mean, as of the end of each fiscal quarter
of the Borrower, for the Credit Party and their Subsidiaries on a Consolidated
basis for the four consecutive quarters ending on such date, the ratio of (a)
Consolidated EBITDA for such period to (b) Consolidated Interest Expense for
such period.
"Interest Payment Date" shall mean (a) as to any Alternate Base Rate Loan,
the last Business Day of each March, June, September and December and on the
applicable Maturity
13
Date, (b) as to any LIBOR Rate Loan having an Interest Period of three months or
less, the last day of such Interest Period, (c) as to any LIBOR Rate Loan having
an Interest Period longer than three months, (i) each three (3) month
anniversary following the first day of such Interest Period and (ii) the last
day of such Interest Period and (d) as to any Loan which is the subject of a
mandatory prepayment required pursuant to Section 2.7(b), the date on which such
mandatory prepayment is due.
"Interest Period" shall mean, with respect to any LIBOR Rate Loan,
(a) initially, the period commencing on the Borrowing Date or
conversion date, as the case may be, with respect to such LIBOR Rate Loan
and ending one, two, three or six months thereafter, subject to
availability to all applicable Lenders, as selected by the Borrower in the
Notice of Borrowing or Notice of Conversion given with respect thereto; and
(b) thereafter, each period commencing on the last day of the
immediately preceding Interest Period applicable to such LIBOR Rate Loan
and ending one, two, three or six months thereafter, subject to
availability to all applicable Lenders, as selected by the Borrower by
irrevocable notice to the Administrative Agent not less than three (3)
Business Days prior to the last day of the then current Interest Period
with respect thereto; provided that the foregoing provisions are subject to
the following:
(i) if any Interest Period pertaining to a LIBOR Rate Loan would
otherwise end on a day that is not a Business Day, such Interest
Period shall be extended to the next succeeding Business Day unless
the result of such extension would be to carry such Interest Period
into another calendar month in which event such Interest Period shall
end on the immediately preceding Business Day;
(ii) any Interest Period pertaining to a LIBOR Rate Loan that
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 the relevant calendar month;
(iii) if the Borrower shall fail to give notice as provided
above, the Borrower shall be deemed to have selected an Alternate Base
Rate Loan to replace the affected LIBOR Rate Loan;
(iv) no Interest Period in respect of any Loan shall extend
beyond the applicable Maturity Date and, further with regard to the
Term Loan, no Interest Period shall extend beyond any principal
amortization payment date with respect to such Term Loan unless the
portion of such Term Loan consisting of Alternate Base Rate Loans
together with the portion of such Term Loan consisting of LIBOR Rate
Loans with Interest Periods expiring prior to or concurrently with the
date such principal amortization payment date is due, is at least
equal to the amount of such principal amortization payment due on such
date; and
14
(v) no more than twelve (12) LIBOR Rate Loans may be in effect at
any time. For purposes hereof, LIBOR Rate Loans with different
Interest Periods shall be considered as separate LIBOR Rate Loans,
even if they shall begin on the same date and have the same duration,
although borrowings, extensions and conversions may, in accordance
with the provisions hereof, be combined at the end of existing
Interest Periods to constitute a new LIBOR Rate Loan with a single
Interest Period.
"Interim Maturity Date" shall mean the date that is thirty (30) days
following the Closing Date.
"Interim Term Loan" shall have the meaning set forth in Section 2.3A.
"Interim Term Loan Lender" shall mean Wachovia Bank, National Association.
"Interim Term Loan Committed Amount" shall have the meaning set forth in
Section 2.2A.
"Interim Term Loan Commitment" shall mean, with respect to the Interim Term
Loan Lender, the commitment of the Interim Term Loan Lender to make its portion
of the Interim Term Loan in a principal amount equal to the Interim Term Loan
Committed Amount.
"Interim Term Loan Note" shall mean the promissory note of the Borrower (if
any) in favor of any of the Interim Term Loan Lender evidencing the Interim Term
Loan provided by the Interim Term Loan Lender pursuant to Section 2.2A(a), as
such promissory note may be amended, modified, restated, amended and restated,
extended, replaced, increased or otherwise supplemented from time to time.
"Internal Control Event" shall mean a material weakness in, or fraud that
involves management or other employees who have a significant role in, any
Credit Party's internal controls over financial reporting, in each case as
described in the Securities Laws, to the extent such material weakness or fraud
could reasonably be expected to cause a Material Adverse Effect.
"Investment" shall mean (a) the acquisition (whether for cash, property,
services, assumption of Indebtedness, securities or otherwise) of shares of
Capital Stock, other ownership interests or other securities of any Person or
bonds, notes, debentures or all or substantially all of the assets of any
Person, (b) any deposit with, or advance, loan or other extension of credit to,
any Person (other than deposits made in the ordinary course of business) or (c)
any other capital contribution to or investment in any Person, including,
without limitation, any Guaranty Obligation (including any support for a letter
of credit issued on behalf of such Person) incurred for the benefit of such
Person; provided that the sale of put options shall not constitute an
"Investment" hereunder.
"Issuing Lender" shall mean (a) with respect to any Existing Letters of
Credit, JPMorgan Chase Bank, Xxxxx Fargo Bank, National Association and/or Bank
of America, N.A., as
15
applicable and (b) with respect to all other Letters of Credit, Wachovia or any
successor in such capacity.
"Issuing Lender Fees" shall have the meaning set forth in Section 2.5(c).
"Joinder Agreement" shall mean a Joinder Agreement in substantially the
form of Exhibit 1.1(d), executed and delivered by an Additional Credit Party in
accordance with the provisions of Section 5.10.
"Lender" shall have the meaning set forth in the first paragraph of this
Agreement and shall include the Revolving Lenders, the Term Loan Lenders, the
Interim Term Loan Lender, the Issuing Lender and the Swingline Lender.
"Lender Commitment Letter" shall mean, with respect to any Lender, the
letter (or other correspondence) to such Lender from the Administrative Agent
notifying such Lender of its LOC Commitment, Revolving Commitment Percentage
and/or Term Loan A Commitment Percentage.
"Letter of Credit" shall mean (a) any letter of credit issued by the
Issuing Lender pursuant to the terms hereof and (b) any Existing Letters of
Credit, in each case as such letter of credit may be amended, modified,
restated, amended and restated, extended, renewed, increased, replaced or
supplemented from time to time by agreement of the Issuing Lender and relevant
Credit Party.
"Letter of Credit Facing Fee" shall have the meaning set forth in Section
2.5(c).
"Letter of Credit Fee" shall have the meaning set forth in Section 2.5(b).
"LIBOR" shall mean, for any LIBOR 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 (2) 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 "LIBOR" shall mean, for any LIBOR 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 (2) 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%). If, for any reason, neither of such rates is
available, then "LIBOR" shall mean the rate per annum at which, as determined by
the Administrative Agent in accordance with its customary practices, Dollars in
an amount comparable to the Loans then requested are being offered to leading
banks at approximately 11:00 A.M. London time, two (2) Business Days prior to
the commencement of the applicable Interest Period for settlement in immediately
available funds by leading banks in the London interbank market for a period
equal to the Interest Period selected.
16
"LIBOR Lending Office" shall mean, initially, the office(s) of each Lender
designated as such Lender's LIBOR Lending Office in such Lender's Administrative
Details Form; and thereafter, such other office of such Lender as such Lender
may from time to time specify to the Administrative Agent and the Borrower as
the office of such Lender at which the LIBOR Rate Loans of such Lender are to be
made.
"LIBOR Rate" shall mean a rate per annum (rounded upwards, if necessary, to
the next higher 1/100th of 1%) determined by the Administrative Agent pursuant
to the following formula:
LIBOR
LIBOR Rate = ------------------------------------
1.00 - Eurodollar Reserve Percentage
"LIBOR Rate Loan" shall mean Loans the rate of interest applicable to which
is based on the LIBOR Rate.
"Lien" shall mean any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge or other security
interest or any preference in the nature of a security agreement, priority or
other security agreement of any kind or nature whatsoever (including, without
limitation, any conditional sale or other title retention agreement and any
Capital Lease having substantially the same economic effect as any of the
foregoing).
"Loan" shall mean a Revolving Loan, the Term Loan and/or a Swingline Loan,
as appropriate.
"LOC Commitment" shall mean the commitment of the Issuing Lender to issue
Letters of Credit and with respect to each Revolving Lender, the commitment of
such Revolving Lender to purchase participation interests in the Letters of
Credit up to such Lender's LOC Committed Amount as specified in the Lender
Commitment Letter or in the Register, as such amount may be reduced from time to
time in accordance with the provisions hereof.
"LOC Committed Amount" shall have the meaning set forth in Section 2.3(a).
"LOC Documents" shall mean, with respect to each Letter of Credit, such
Letter of Credit, any amendments thereto, any documents delivered in connection
therewith, any application therefor, and any agreements, instruments, guarantees
or other documents (whether general in application or applicable only to such
Letter of Credit) governing or providing for (a) the rights and obligations of
the parties concerned or (b) any collateral security for such obligations.
"LOC Obligations" shall mean, at any time, the sum of (a) the maximum
amount which is, or at any time thereafter may become, available to be drawn
under Letters of Credit then outstanding, assuming compliance with all
requirements for drawings referred to in such Letters of Credit (including,
without limitation, any amount that remains available to be drawn under
17
any standby Letter of Credit despite the expiration thereof by its terms, due to
the effect of Rule 3.14 of the "International Standby Practices 1998" published
by the Institute of International Banking Law & Practice (or any subsequent
official revision thereof)) plus (b) the aggregate amount of all drawings under
Letters of Credit honored by the Issuing Lender but not theretofore reimbursed.
"Mandatory LOC Borrowing" shall have the meaning set forth in Section
2.3(e).
"Mandatory Swingline Borrowing" shall have the meaning set forth in Section
2.4(b)(ii).
"Material Adverse Effect" shall mean a material adverse effect on (a) the
business, operations, property or financial condition of the Borrower and its
Subsidiaries taken as a whole, (b) the ability of the Borrower and the
Guarantors to perform their material obligations, when such material obligations
are required to be performed, under this Agreement, any of the Notes or any
other Credit Document or (c) the validity or enforceability of this Agreement,
any of the Notes or any of the other Credit Documents or the rights or remedies
of the Administrative Agent or the Lenders hereunder or thereunder.
"Material Contract" shall mean (a) any contract, agreement, permit or
license, written or oral, of the Credit Parties or any of their Subsidiaries
that is required to be disclosed as a "Material Agreement" pursuant to Form
10-K, 10-Q or 8-K of the Exchange Act and (b) any Material Government Contract.
"Material Domestic Subsidiary" shall mean any Domestic Subsidiary of the
Borrower that, together with its Subsidiaries, (i) generates more than 10% of
Consolidated EBITDA on a Pro Forma Basis for the four (4) fiscal quarter period
most recently ended; provided, however, that if at any time there are Domestic
Subsidiaries which are not classified as "Material Domestic Subsidiaries" but
which, together with their Subsidiaries, collectively generate more than 15% of
Consolidated EBITDA on a pro forma basis, then the Borrower shall promptly
designate one or more of such Domestic Subsidiaries as Material Domestic
Subsidiaries and cause any such Domestic Subsidiaries to comply with the
provisions of Section 5.10 such that, after such Domestic Subsidiaries become
Guarantors hereunder, the Domestic Subsidiaries that are not Guarantors,
together with their Subsidiaries, shall generate less than 15% of Consolidated
EBITDA.
"Material Foreign Subsidiary" shall mean any Foreign Subsidiary of the
Borrower that, together with its Subsidiaries, generates more than 5% of
Consolidated EBITDA on a Pro Forma Basis for the four (4) fiscal quarter period
most recently ended; provided, however, that if at any time there are Foreign
Subsidiaries which are not classified as "Material Foreign Subsidiaries" but
which, together with their Subsidiaries, collectively generate more than 10% of
Consolidated EBITDA on a pro forma basis, then the Borrower shall promptly
designate one or more of such Foreign Subsidiaries as Material Foreign
Subsidiaries such that, after such Foreign Subsidiaries become Material Foreign
Subsidiaries hereunder, the Foreign Subsidiaries that are not classified as
"Material Foreign Subsidiaries," together with their Subsidiaries, shall
generate less than 10% of Consolidated EBITDA.
18
"Material Government Contract" shall mean a Government Contract with
potential payment obligations by a Governmental Authority to the Borrower or any
of its Subsidiaries which are in excess of $50,000,000.
"Material Intellectual Property" shall mean all Intellectual Property of
the Credit Parties and their Subsidiaries, taken as a whole, other than
Intellectual Property, which individually or in the aggregate, generates and/or
contributes to the generation of less than 10% of Consolidated EBITDA.
"Materials of Environmental Concern" shall mean any gasoline or petroleum
(including crude oil or any fraction thereof) or petroleum products or any
hazardous or toxic substances, materials or wastes, defined or regulated as such
in or under any Environmental Law, including, without limitation, asbestos,
perchlorate, polychlorinated biphenyls and urea-formaldehyde insulation.
"Maturity Date" shall mean the Revolver Maturity Date, Term Loan Maturity
Date and/or the Interim Maturity Date, as applicable.
"Moody's" shall mean Xxxxx'x Investors Service, Inc.
"Multiemployer Plan" shall mean a Plan that is a multiemployer plan as
defined in Section 4001(a)(3) of ERISA.
"Net Cash Proceeds" shall mean the aggregate cash proceeds received by any
Credit Party or any Subsidiary in respect of any Asset Disposition, Equity
Issuance, Debt Issuance or Recovery Event, net of (a) direct transaction costs
(including, without limitation, legal, accounting and investment banking fees,
discounts, expenses and sales commissions) associated therewith, (b) amounts
held in escrow to be applied as part of the purchase price of any Asset
Disposition and (c) taxes paid or payable as a result thereof; it being
understood that "Net Cash Proceeds" shall include, without limitation, any cash
received upon the sale or other disposition of any non-cash consideration
received by any Credit Party or any Subsidiary in any Asset Disposition, Equity
Issuance, Debt Issuance or Recovery Event and any cash released from escrow as
part of the purchase price in connection with any Asset Disposition net of (a),
(b) and (c) above.
"Note" or "Notes" shall mean the Revolving Notes, the Term Loan A Notes,
the Interim Term Loan Note and/or the Swingline Note, collectively, separately
or individually, as appropriate.
"Notice of Borrowing" shall mean a request for a Revolving Loan borrowing
pursuant to Section 2.1(b)(i) or a request for a Swingline Loan borrowing
pursuant to Section 2.4(b)(i), as appropriate. A Form of Notice of Borrowing is
attached as Exhibit 1.1(e).
"Notice of Conversion/Extension" shall mean the written notice of
conversion of a LIBOR Rate Loan to an Alternate Base Rate Loan or an Alternate
Base Rate Loan to a LIBOR
19
Rate Loan, or extension of a LIBOR Rate Loan, in each case substantially in the
form of Exhibit 1.1(f).
"Obligations" shall mean, collectively, Loans and LOC Obligations and all
other obligations of the Credit Parties to the Administrative Agent and the
Lenders under the Credit Documents.
"OFAC" shall mean the U.S. Department of the Treasury's Office of Foreign
Assets Control.
"Operating Lease" shall mean, as applied to any Person, any lease
(including, without limitation, leases which may be terminated by the lessee at
any time) of any property (whether real, personal or mixed) which is not a
Capital Lease other than any such lease in which that Person is the lessor.
"Other Agents" shall have the meaning set forth in Section 8.10.
"Participant" shall have the meaning set forth in Section 9.6(b).
"Participation Interest" shall mean a participation interest purchased by a
Revolving Lender in LOC Obligations as provided in Section 2.3(c) and in
Swingline Loans as provided in Section 2.4.
"Patent Licenses" shall mean all agreements, whether written or oral,
providing for the grant by or to a Person of any right to manufacture, use or
sell any invention covered by a Patent, including, without limitation, any
thereof referred to in Schedule 3.16.
"Patents" shall mean (a) all letters patent of the United States or any
other country, now existing or hereafter arising, and all improvement patents,
reissues, reexaminations, patents of additions, renewals and extensions thereof,
including, without limitation, any thereof referred to in Schedule 3.16, and (b)
all applications for letters patent of the United States or any other country,
now existing or hereafter arising, and all provisionals, divisions,
continuations and continuations-in-part and substitutes thereof, including,
without limitation, any thereof referred to in Schedule 3.16.
"Patriot Act" shall have the meaning set forth in Section 9.18.
"PBGC" shall mean the Pension Benefit Guaranty Corporation established
pursuant to Subtitle A of Title IV of ERISA.
"Permitted Acquisition" shall mean (1) the potential acquisition set forth
on Schedule 1.1(a), and (2) an acquisition or any series of related acquisitions
by a Credit Party of (a) all or a substantial portion of the assets or a
majority of the outstanding Voting Stock or equity interests of a Person, (b) a
Person or business unit of a Person by a merger, amalgamation or consolidation
or any other combination with such Person or (c) any division, line of business
or other business unit of a Person (such Person or such division, line of
business or other business
20
unit of such Person shall be referred to herein as the "Target"), in each case
that is a type of business (or assets used in a type of business) permitted to
be engaged in by the Borrower and its Subsidiaries pursuant to Section 6.3, so
long as (i) no Default or Event of Default shall then exist or would exist after
giving effect thereto, (ii) the Credit Parties shall (A) for acquisitions less
than or equal to $75,000,000 in total consideration, be in compliance with each
of the financial covenants set forth in Section 5.9 on a Pro Forma Basis after
giving effect to the consummation of such acquisition, (B) for acquisitions
greater than $75,000,000 in total consideration, demonstrate to the reasonable
satisfaction of the Administrative Agent and the Required Lenders at least five
(5) Business Days prior to the consummation of the Acquisition, that, after
giving effect to the acquisition on a Pro Forma Basis the Credit Parties are in
compliance with each of the financial covenants set forth in Section 5.9 and (C)
for acquisitions greater than $150,000,000 in total consideration, deliver the
information required by Section 5.2(g), (iii) the Administrative Agent, on
behalf of the Lenders, shall have received (or within thirty (30) days after the
closing of such acquisition will receive) the security interest required
pursuant to Section 5.10 and/or 5.12, if any, and if a Person, shall have
executed a Joinder Agreement in accordance with the terms of Section 5.10, to
the extent required to do so pursuant to Section 5.10, (iv) if total
non-contingent consideration for such acquisition is greater than $25,000,000,
the Target shall have earnings before interest, taxes, depreciation and
amortization for the four fiscal quarter period prior to the acquisition date in
an amount greater than $0, (v) such acquisition shall not be a "hostile"
acquisition and shall have been approved by the Board of Directors and/or
shareholders of the applicable Credit Party and the Target, and (vi) all
acquisitions of Targets incorporated, formed, organized or (with respect to an
asset acquisition) located outside the United States shall not exceed the sum of
(A) $175,000,000 and (B) the Net Cash Proceeds from any Equity Issuance of the
Borrower, to the extent a corresponding prepayment of the Credit Party
Obligations shall have been made if required pursuant to Section 2.7, over the
term of this Agreement. The acquisition of the Acquired Company shall be deemed
a Permitted Acquisition for all purposes of this Agreement. For purposes of
clause (B) above, the reasonable satisfaction of the Administrative Agent and
the Required Lenders shall be deemed to have been obtained if, after ten (10)
Business Days of delivery of the pro forma calculations and supporting materials
to the Administrative Agent, the Administrative Agent has not delivered a
written objection to such calculations to the Borrower.
"Permitted Investments" shall mean:
(a) cash and Cash Equivalents;
(b) Investments of the Borrower or any of its Subsidiaries existing as
of the Closing Date and as set forth on Schedule 1.1(b);
(c) receivables owing to the Credit Parties or any of their
Subsidiaries or any receivables and advances to suppliers, in each case if
created, acquired or made in the ordinary course of business and payable or
dischargeable in accordance with customary trade terms;
(d) Investments in and loans to any Credit Party;
21
(e) loans and advances to officers, directors and employees in an
aggregate amount not to exceed $1,000,000 at any time outstanding; provided
that such loans and advances shall comply with all applicable Requirements
of Law (including Xxxxxxxx-Xxxxx);
(f) Investments (including debt obligations) received in connection
with the bankruptcy or reorganization of suppliers and customers and in
settlement of delinquent obligations of, and other disputes with, customers
and suppliers arising in the ordinary course of business;
(g) Investments, acquisitions or transactions permitted under Section
6.4(b);
(h) purchases of securities of public companies made for the ultimate
purpose of consummating or preparing to consummate a Permitted Acquisition
in an aggregate amount not to exceed $75,000,000 at any time outstanding;
provided that if such purchase results in a Permitted Acquisition then
amounts expended in connection with the purchase of securities thereof
shall not be included in the foregoing limitation;
(i) Hedging Agreements to the extent permitted hereunder;
(j) Investments in and loans and advances to Subsidiaries that are not
Credit Parties in an aggregate amount not to exceed $30,000,000;
(k) Investments consisting of Indebtedness permitted pursuant to
Section 6.1 (other than intercompany Investments and Indebtedness permitted
pursuant to clauses (d) and (j) hereof);
(l) advances and loans to suppliers and customers in an aggregate
amount not to exceed $30,000,000 at any one time outstanding; and
(m) in addition to clauses (a) through (l) above, additional joint
ventures, loans, advances, purchases of securities of public or private
companies made for the ultimate purpose of consummating or preparing to
consummate a Permitted Acquisition and/or Investments in an amount not to
exceed 5% of Consolidated Total Assets as of the end of the most recently
ended fiscal quarter of the Borrower at any time outstanding; provided that
if any such purchases result in a Permitted Acquisition then amounts
expended in connection with the purchase of such securities shall not be
included in the calculation of the foregoing limitation.
"Permitted Liens" shall mean:
(a) Liens created by or otherwise existing under or in connection with
this Agreement or the other Credit Documents in favor of the Administrative
Agent on behalf of the Secured Parties;
22
(b) Liens in favor of a Hedging Agreement Provider in connection with
a Secured Hedging Agreement; provided that such Liens shall secure the
Credit Party Obligations and the obligations under such Secured Hedging
Agreement on a pari passu basis;
(c) Liens securing purchase money Indebtedness and Capital Lease
Obligations to the extent permitted under Section 6.1(c); provided, that
(i) any such Lien attaches to such property concurrently with or within
thirty (30) days after the acquisition thereof and (ii) such Lien relates
solely to the property so acquired in such transaction and replacements and
proceeds thereof;
(d) Liens for taxes, assessments, charges or other governmental levies
not yet due or as to which the period of grace (not to exceed sixty (60)
days), if any, related thereto has not expired or which are being contested
in good faith by appropriate proceedings; provided that adequate reserves
with respect thereto are maintained on the books of any Credit Party or its
Subsidiaries, as the case may be, in conformity with GAAP (or, in the case
of Foreign Subsidiaries with significant operations outside the United
States of America, generally accepted accounting principles in effect from
time to time in their respective jurisdictions of incorporation);
(e) statutory Liens such as carriers', warehousemen's, mechanics',
materialmen's, landlords', repairmen's or other like Liens arising in the
ordinary course of business which are not overdue for a period of more than
sixty (60) days or which are being contested in good faith by appropriate
proceedings; provided that a reserve or other appropriate provision shall
have been made therefor and the aggregate amount of such Liens is less than
$5,000,000;
(f) pledges or deposits in connection with workers' compensation,
unemployment insurance and other social security legislation and deposits
securing liability to insurance carriers under insurance or self-insurance
arrangements in an aggregate amount not to exceed $10,000,000;
(g) deposits to secure the performance of bids, trade contracts (other
than for borrowed money), leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in
the ordinary course of business;
(h) easements, rights of way, restrictions and other similar
encumbrances affecting real property which do not materially interfere with
the ordinary conduct of the business of the Credit Parties and their
Subsidiaries, taken as a whole;
(i) Liens existing on the Closing Date and set forth on Schedule
1.1(c); provided that (i) no such Lien shall at any time be extended to
cover property or assets other than the property or assets subject thereto
on the Closing Date and improvements thereon and (ii) the principal amount
of the Indebtedness secured by such Lien shall not be increased;
23
(j) any extension, renewal or replacement (or successive extensions,
renewals or replacements), in whole or in part, of any Lien referred to in
this definition (other than Liens set forth on Schedule 1.1(c)); provided
that such extension, renewal or replacement Lien shall be limited to all or
a part of the property which secured the Lien so extended, renewed or
replaced (plus improvements on such property);
(k) Liens arising in the ordinary course of business by virtue of any
contractual, statutory or common law provision relating to banker's Liens,
rights of set-off or similar rights and remedies covering deposit or
securities accounts (including funds or other assets credited thereto) or
other funds maintained with a depository institution or securities
intermediary;
(l) any zoning, building or similar laws or rights reserved to or
vested in any Governmental Authority;
(m) restrictions on transfers of securities imposed by applicable
Securities Laws;
(n) Liens arising out of judgments or awards not resulting in an Event
of Default; provided that the applicable Credit Party or Subsidiary shall
in good faith be prosecuting an appeal or proceedings for review;
(o) any interest or title of a lessor, licensor or sublessor under any
lease, license or sublease entered into by any Credit Party or any
Subsidiary thereof in the ordinary course of its business and covering only
the assets so leased, licensed or subleased and replacements thereof;
(p) Liens on the assets of Foreign Subsidiaries securing Indebtedness
owing from Foreign Subsidiaries to Persons that are not Affiliates to the
extent permitted by Section 6.1(j);
(q) Liens on the assets of Foreign Subsidiaries securing Indebtedness
of Foreign Subsidiaries permitted by Section 6.1 to non-Affiliates;
(r) Liens on the assets of any Person existing at the time such assets
are acquired by the Borrower or any Subsidiary or at the time such Person
becomes a Subsidiary in connection with a Permitted Acquisition or is
merged or consolidated into the Borrower or any Subsidiary in connection
with a Permitted Acquisition so long as (i) such Liens (A) are not created,
incurred or assumed in contemplation of such Permitted Acquisition and (B)
do not extend to any other assets of the Borrower or any Subsidiary at the
time of such Permitted Acquisition; and (ii) the aggregate principal amount
of Indebtedness secured by all such Liens does not exceed $25,000,000 at
any time;
(s) assignments of insurance or condemnation proceeds provided to
landlords (or their mortgagees) pursuant to the terms of any lease and
Liens or rights reserved in any lease for rent or for compliance with the
terms of such lease; and
24
(t) additional Liens so long as the principal amount of Indebtedness
and other obligations secured thereby does not exceed $10,000,000 in the
aggregate.
"Person" shall mean an individual, partnership, corporation, limited
liability company, business trust, joint stock company, trust, unincorporated
association, joint venture, Governmental Authority or other entity of whatever
nature.
"Plan" shall mean, as of any date of determination, any employee benefit
plan which is covered by Title IV of ERISA and in respect of which any Credit
Party or a Commonly Controlled Entity is (or, if such plan were terminated at
such time, would under Section 4069 of ERISA be deemed to be) an "employer" as
defined in Section 3(5) of ERISA.
"Pledge Agreement" shall mean the Pledge Agreement dated as of the Closing
Date executed by the Credit Parties in favor of the Administrative Agent, for
the benefit of the Secured Parties, as the same may from time to time be
amended, modified, restated, amended and restated, extended, replaced, or
otherwise supplemented in accordance with the terms hereof and thereof.
"Prime Rate" shall have the meaning set forth in the definition of
Alternate Base Rate.
"Pro Forma Basis" shall mean, with respect to any transaction, that such
transaction shall be deemed to have occurred as of the first day of the
twelve-month period ending as of the most recent quarter end preceding the date
of such transaction.
"Properties" shall have the meaning set forth in Section 3.10(a).
"Purchasing Lenders" shall have the meaning set forth in Section 9.6(c).
"Recovery Event" shall mean the receipt by any Credit Party or any of its
Subsidiaries of any cash insurance proceeds or condemnation or expropriation
award payable by reason of theft, loss, physical destruction or damage, taking
or similar event with respect to any of their respective property or assets
other than obsolete property or assets no longer used or useful in the business
of the Credit Parties or any of their Subsidiaries.
"Register" shall have the meaning set forth in Section 9.6(d).
"Reimbursement Obligation" shall mean the obligation of the Borrower to
reimburse the Issuing Lender pursuant to Section 2.3(d) for amounts drawn under
Letters of Credit.
"Reorganization" shall mean, with respect to any Multiemployer Plan, the
condition that such Plan is in reorganization within the meaning of such term as
used in Section 4241 of ERISA.
25
"Reportable Event" shall mean any of the events set forth in Section
4043(c) of ERISA, other than those events as to which the thirty-day notice
period is waived under PBGC Reg. Section 4043.
"Required Lenders" shall mean, as of any date of determination, Lenders
holding at least a majority of (a) the outstanding Revolving Commitments and
Term Loan or (b) if the Revolving Commitments have been terminated, the
outstanding Loans and Participation Interests; provided, however, that if any
Lender shall be a Defaulting Lender at such time, then there shall be excluded
from the determination of Required Lenders, Obligations (including Participation
Interests) owing to such Defaulting Lender and such Defaulting Lender's
Commitments.
"Requirement of Law" shall mean, as to any Person, the articles or
certificate of incorporation and by-laws or other organizational or governing
documents of such Person, and each law, treaty, rule or regulation or
determination of an arbitrator or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its property or to
which such Person or any of its property is subject.
"Responsible Officer" shall mean, for any Credit Party, any duly authorized
officer thereof.
"Restricted Payment" shall mean (a) any dividend or other distribution,
direct or indirect, on account of any shares of any class of Capital Stock of
any Credit Party or any of its Subsidiaries, now or hereafter outstanding, (b)
any redemption, retirement, sinking fund or similar payment, purchase or other
acquisition for value, direct or indirect, of any shares of any class of Capital
Stock of any Credit Party or any of its Subsidiaries, 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
Capital Stock of any Credit Party or any of its Subsidiaries, now or hereafter
outstanding, and (d) any payment or prepayment of principal of, premium, if any,
or interest on, redemption, purchase, retirement, defeasance, sinking fund or
similar payment with respect to, any Subordinated Debt of any Credit Party or
any of its Subsidiaries.
"Revolver Maturity Date" shall mean the date that is five (5) years
following the Closing Date.
"Revolving Commitment" shall mean, with respect to each Revolving Lender,
the commitment of such Revolving Lender to make Revolving Loans in an aggregate
principal amount at any time outstanding up to an amount equal to such Revolving
Lender's Revolving Commitment Percentage of the Revolving Committed Amount.
"Revolving Commitment Percentage" shall mean, for each Lender, the
percentage identified as its Revolving Commitment Percentage in its Lender
Commitment Letter or in the Assignment Agreement pursuant to which such Lender
became a Lender hereunder, as such percentage may be modified in connection with
any assignment made in accordance with the provisions of Section 9.6(c).
26
"Revolving Committed Amount" shall have the meaning set forth in Section
2.1(a).
"Revolving Lender" shall mean, as of any date of determination, a Lender
holding a Revolving Commitment on such date.
"Revolving Loan" shall have the meaning set forth in Section 2.1.
"Revolving Note" or "Revolving Notes" shall mean the promissory notes of
the Borrower provided pursuant to Section 2.1(e) in favor of any of the
Revolving Lenders evidencing the Revolving Loan provided by any such Revolving
Lender pursuant to Section 2.1(a), individually or collectively, as appropriate,
as such promissory notes may be amended, modified, restated, amended and
restated, extended, replaced, increased or otherwise supplemented from time to
time.
"S&P" shall mean Standard & Poor's Ratings Services, a division of The
McGraw Hill Companies, Inc.
"Sanctioned Country" shall mean a country subject to a sanctions program
identified on the list maintained by OFAC and available at
xxxx://xxx.xxxxx.xxx/xxxxxxx/xxxxxx/xxxx/xxxxxxxxx/xxxxx.xxxx, or as otherwise
published from time to time.
"Sanctioned Person" shall mean (a) a Person named on the list of "Specially
Designated Nationals and Blocked Persons" maintained by OFAC available at
xxxx://xxx.xxxxx.xxx/xxxxxxx/xxxxxx/xxxx/xxx/xxxxx.xxxx, or as otherwise
published from time to time, or (b) (i) an agency of the government of a
Sanctioned Country, (ii) an organization controlled by a Sanctioned Country, or
(iii) a person resident in a Sanctioned Country, to the extent subject to a
sanctions program administered by OFAC.
"Xxxxxxxx-Xxxxx" shall mean the Xxxxxxxx-Xxxxx Act of 2002.
"Scheduled Funded Debt Payments" shall mean, as of any date of
determination for the Borrower and its Subsidiaries, the sum of all scheduled
payments of principal on Funded Debt for the applicable period ending on the
date of determination (including the principal component of payments due on
Capital Leases during the applicable period ending on the date of
determination).
"SEC" shall mean the Securities and Exchange Commission or any successor
Governmental Authority.
"Secured Hedging Agreement" shall mean any Hedging Agreement between a
Credit Party and a Hedging Agreement Provider, as amended, modified, restated,
amended and restated, extended, replaced, increased or otherwise supplemented
from time to time pursuant to an agreement of the parties thereto.
27
"Secured Hedging Obligations" shall mean, without duplication, all of the
obligations, indebtedness and liabilities of the Credit Parties to the Hedging
Agreement Providers, whenever arising, under the Secured Hedging Agreements,
including principal, interest, fees, premiums, scheduled periodic payments,
breakage, termination and other payments, reimbursements and indemnification
obligations and other amounts (including, but not limited to, any interest
accruing after the occurrence of a filing of a petition of bankruptcy under the
Bankruptcy Code with respect to any Credit Party, regardless of whether such
interest is an allowed claim under the Bankruptcy Code).
"Secured Parties" shall mean the Administrative Agent, the Lenders and the
Hedging Agreement Providers.
"Securities Act" shall mean the Securities Act of 1933, together with any
amendment thereto or replacement thereof and any rules or regulations
promulgated thereunder.
"Securities Laws" shall mean the Securities Act, the Exchange Act and
Xxxxxxxx-Xxxxx, and the rules and regulations promulgated thereunder, as each of
the foregoing may be amended and in effect on any applicable date hereunder.
"Security Agreement" shall mean the Security Agreement dated as of the
Closing Date executed by the Credit Parties in favor of the Administrative
Agent, for the benefit of the Secured Parties, as amended, modified, restated,
amended and restated, extended, replaced, increased or otherwise supplemented
from time to time in accordance with its terms.
"Security Documents" shall mean the Security Agreement, the Pledge
Agreement and all other agreements, documents and instruments relating to,
arising out of, or in any way connected with any of the foregoing documents or
granting to the Administrative Agent, Liens or security interests to secure,
inter alia, the Credit Party Obligations whether now or hereafter executed
and/or filed, each as may be amended from time to time in accordance with the
terms hereof, executed and delivered in connection with the granting, attachment
and perfection of the Administrative Agent's security interests and liens
arising thereunder, including, without limitation, UCC financing statements.
"Senior Leverage Ratio" shall mean, as of the end of each fiscal quarter of
the Borrower, for the Borrower and its Subsidiaries on a Consolidated basis for
the four consecutive quarters ending on such date, the ratio of (a) Consolidated
Funded Debt on such date minus Subordinated Debt on such date minus, (i) to the
extent the Term Loan on such date is outstanding, but no Revolving Loan or
Swingline Loan is outstanding on such date, cash and Cash Equivalents on the
balance sheet of the Borrower and its Subsidiaries in an aggregate amount not to
exceed $150,000,000 or (ii) to the extent no Term Loan, Revolving Loan or
Swingline Loan is outstanding on such date, cash and Cash Equivalents on the
balance sheet of the Borrower and its Subsidiaries to (b) Consolidated EBITDA
for such four fiscal quarter period.
"Senior Subordinated Convertible Notes" shall mean those 2.00% Senior
Subordinated Convertible Notes.
28
"Senior Subordinated Indebtedness" shall mean the Senior Subordinated Notes
and the Senior Subordinated Convertible Notes.
"Senior Subordinated Notes" shall mean those 8.25% Senior Subordinated
Notes due 2013.
"Senior Unsecured Notes" shall mean the Acquired Company's 7 3/8% Senior
Unsecured Notes due May 2006.
"Single Employer Plan" shall mean any Plan that is not a Multiemployer
Plan.
"Subordinated Debt" shall mean any Indebtedness incurred by any Credit
Party which by its terms is specifically subordinated in right of payment to the
prior payment of the Credit Party Obligations and contains subordination and
other terms acceptable to the Administrative Agent.
"Subsidiary" shall mean, as to any Person, a corporation, partnership,
limited liability company or other entity of which shares of stock or other
ownership interests having ordinary voting power (other than stock or such other
ownership interests having such power only by reason of the happening of a
contingency) to elect a majority of the board of directors or similar managers
of such corporation, limited liability company, partnership or other entity are
at the time owned, or the management of which is otherwise controlled, directly
or indirectly through one or more intermediaries, or both, by such Person.
Unless otherwise qualified, all references to a "Subsidiary" or to
"Subsidiaries" in this Agreement shall refer to a Subsidiary or Subsidiaries of
the Borrower.
"Swingline Commitment" shall mean the commitment of the Swingline Lender to
make Swingline Loans in an aggregate principal amount at any time outstanding up
to the Swingline Committed Amount, and the commitment of the Revolving Lenders
to purchase participation interests in the Swingline Loans as provided in
Section 2.4(b)(ii), as such amounts may be reduced from time to time in
accordance with the provisions hereof.
"Swingline Committed Amount" shall mean the amount of the Swingline
Lender's Swingline Commitment as specified in Section 2.4(a).
"Swingline Lender" shall mean Wachovia and any successor in such capacity.
"Swingline Loan" shall have the meaning set forth in Section 2.4(a).
"Swingline Note" shall mean the promissory note of the Borrower in favor of
the Swingline Lender evidencing the Swingline Loans provided pursuant to Section
2.4(d), as such promissory note may be amended, modified, restated, amended and
restated, extended, replaced, increased or otherwise supplemented from time to
time.
"Taxes" shall have the meaning set forth in Section 2.17.
"Term Loan" shall mean the Term Loan A and/or the Interim Term Loan, as
applicable.
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"Term Loan A" shall have the meaning set forth in Section 2.2(a).
"Term Loan A Commitment" shall mean, with respect to each Term Loan A
Lender, the commitment of such Term Loan A Lender to make its portion of the
Term Loan A in a principal amount equal to such Term Loan A Lender's Term Loan A
Commitment Percentage of the Term Loan A Committed Amount.
"Term Loan A Commitment Percentage" shall mean, for any Term Loan A Lender,
the percentage identified as its Term Loan A Commitment Percentage in its Lender
Commitment Letter, as such percentage may be modified in connection with any
assignment made in accordance with the provisions of Section 9.6.
"Term Loan A Committed Amount" shall have the meaning set forth in Section
2.2(a).
"Term Loan A Lender" shall mean a Lender holding a Term Loan A Commitment
or a portion of the outstanding Term Loan A.
"Term Loan A Maturity Date" shall mean the date that is five (5) years
following the Closing Date.
"Term Loan A Note" or "Term Loan A Notes" shall mean the promissory notes
of the Borrower (if any) in favor of any of the Term Loan A Lenders evidencing
the portion of the Term Loan A provided by any such Term Loan A Lender pursuant
to Section 2.2(a), individually or collectively, as appropriate, as such
promissory notes may be amended, modified, restated, amended and restated,
extended, replaced, increased or otherwise supplemented from time to time.
"Term Loan Commitment" shall mean the Term Loan A Commitment and/or the
Interim Term Loan Commitment, as applicable
"Term Loan Committed Amount" shall mean the Term Loan A Committed Amount
and/or the Interim Term Loan Committed Amount, as applicable.
"Term Loan Lender" shall mean the Term Loan A Lenders and/or the Interim
Term Loan Lender, as applicable.
"Term Loan Maturity Date" shall mean the Term Loan A Maturity Date and/or
the Interim Maturity Date, as applicable.
"Term Loan Note" or "Term Loan Notes" shall mean the Interim Term Loan Note
and/or the Term Loan A Notes, as applicable.
"Total Leverage Ratio" shall mean, as of the end of each fiscal quarter of
the Borrower, for the Borrower and its Subsidiaries on a Consolidated basis for
the four consecutive quarters ending on such date, the ratio of (a) Consolidated
Funded Debt of the Borrower and its
30
Subsidiaries on such date minus, (i) to the extent the Term Loan on such date is
outstanding, but no Revolving Loan or Swingline Loan is outstanding on such
date, cash and Cash Equivalents on the balance sheet of the Borrower and its
Subsidiaries in an aggregate amount not to exceed $150,000,000 or (ii) to the
extent no Term Loan, Revolving Loan or Swingline Loan is outstanding on such
date, cash and Cash Equivalents on the balance sheet of the Borrower and its
Subsidiaries to (b) Consolidated EBITDA for such four fiscal quarter period.
"Trademark License" shall mean any agreement, whether written or oral,
providing for the grant by or to a Person of any right to use any Trademark,
including, without limitation, any thereof referred to in Schedule 3.16.
"Trademarks" shall mean (a) all trademarks, trade names, corporate names,
company names, business names, fictitious business names, service marks,
elements of package or trade dress of goods or services, logos and other source
or business identifiers, together with the goodwill associated therewith, now
existing or hereafter adopted or acquired, all registrations and recordings
thereof, and all applications in connection therewith, whether in the United
States Patent and Trademark Office or in any similar office or agency of the
United States, any State thereof or any other country or any political
subdivision thereof, including, without limitation, any thereof referred to in
Schedule 3.16 and (b) all renewals thereof including, without limitation, any
thereof referred to in Schedule 3.16.
"Tranche" shall mean the collective reference to LIBOR Rate Loans whose
Interest Periods begin and end on the same day.
"Transactions" shall mean the closing of this Agreement, the other Credit
Documents and the other transactions contemplated hereby to occur in connection
with such closing (including, without limitation, the initial borrowings under
the Credit Documents, the payment of fees and expenses in connection with all of
the foregoing and the Acquisition).
"Transfer Effective Date" shall have the meaning set forth in each
Assignment Agreement.
"Type" shall mean, as to any Loan, its nature as an Alternate Base Rate
Loan or LIBOR Rate Loan, as the case may be.
"UCC" shall mean the Uniform Commercial Code from time to time in effect in
any applicable jurisdiction.
"Unused Fee" shall have the meaning set forth in Section 2.5(a).
"Voting Stock" shall mean, with respect to any Person, Capital Stock issued
by such 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 though the right so to vote
may be or have been suspended by the happening of such a contingency.
31
"Wachovia" shall mean Wachovia Bank, National Association, a national
banking association, together with its successors and/or assigns.
"Works" shall mean all works which are subject to copyright protection
pursuant to Title 17 of the United States Code.
SECTION 1.2 OTHER DEFINITIONAL PROVISIONS.
(a) Unless otherwise specified therein, all terms defined in this
Agreement shall have the defined meanings when used in the Notes or other
Credit Documents or any certificate or other document made or delivered
pursuant hereto.
(b) The words "hereof", "herein" and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole
and not to any particular provision of this Agreement, and Section,
subsection, Schedule and Exhibit references are to this Agreement unless
otherwise specified.
(c) The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms.
SECTION 1.3 ACCOUNTING TERMS.
Unless otherwise specified herein, all accounting terms used herein shall
be interpreted, all accounting determinations hereunder shall be made, and all
financial statements required to be delivered hereunder shall be prepared in
accordance with GAAP applied on a basis consistent with the most recent audited
Consolidated financial statements of the Borrower delivered to the Lenders;
provided that, if the Borrower shall notify the Administrative Agent that it
wishes to amend any definitions incorporated in Section 5.9 to eliminate the
effect of any change in GAAP on the operation of any such definition or
provision (or if the Administrative Agent notifies the Borrower that the
Required Lenders wish to amend any such definition or provision for such
purpose), then the Borrower's compliance with such provisions shall be
determined on the basis of GAAP in effect immediately before the relevant change
in GAAP became effective, until either such notice is withdrawn or such
definition or provision is amended in a manner satisfactory to the Borrower and
the Required Lenders.
The Borrower shall deliver to the Administrative Agent and each Lender at
the same time as the delivery of any annual or quarterly financial statements
given in accordance with the provisions of Section 5.1, (a) a description in
reasonable detail of any material change in the application of accounting
principles employed in the preparation of such financial statements from those
applied in the most recently preceding quarterly or annual financial statements
as to which no objection shall have been made in accordance with the provisions
above and (b) a reasonable estimate of the effect on the financial statements on
account of such changes in application.
For purposes of computing the financial covenants set forth in Section 5.9
for any applicable test period, any Permitted Acquisition or permitted sale of
assets (including a stock
32
sale) shall be given pro forma effect as if such transaction had taken place as
of the first day of such applicable test period.
SECTION 1.4 TIME REFERENCES.
Unless otherwise specified, all references herein to times of day shall be
references to Eastern time (daylight or standard, as applicable).
ARTICLE II
THE LOANS; AMOUNT AND TERMS
SECTION 2.1 REVOLVING LOANS.
(a) Revolving Commitment. During the Commitment Period, subject to the
terms and conditions hereof, each Revolving Lender severally, but not
jointly, agrees to make revolving credit loans in Dollars ("Revolving
Loans") to the Borrower from time to time in an aggregate principal amount
of up to FOUR HUNDRED TWENTY-FIVE MILLION DOLLARS ($425,000,000) (as such
aggregate maximum amount may be reduced from time to time as provided in
Section 2.6, the "Revolving Committed Amount") for the purposes hereinafter
set forth; provided, however, that (i) with regard to each Revolving Lender
individually, the sum of such Revolving Lender's Revolving Commitment
Percentage of the aggregate principal amount of outstanding Revolving Loans
plus such Revolving Lender's Revolving Commitment Percentage of outstanding
Swingline Loans plus such Revolving Lender's Revolving Commitment
Percentage of outstanding LOC Obligations shall not exceed such Revolving
Lender's Revolving Commitment and (ii) with regard to the Revolving Lenders
collectively, the sum of the aggregate principal amount of outstanding
Revolving Loans plus outstanding Swingline Loans plus outstanding LOC
Obligations shall not exceed the Revolving Committed Amount then in effect.
Revolving Loans may consist of Alternate Base Rate Loans or LIBOR Rate
Loans, or a combination thereof, as the Borrower may request, and may be
repaid and reborrowed in accordance with the provisions hereof; provided,
however, the Revolving Loans made on the Closing Date or any of the three
(3) Business Days following the Closing Date, may only consist of Alternate
Base Rate Loans unless the Borrower delivers a funding indemnity letter,
substantially in the form of Exhibit 2.1(a), reasonably acceptable to the
Administrative Agent not less than three (3) Business Days prior to the
Closing Date; provided, further, that any such Alternate Base Rate Loans
may be converted to LIBOR Rate Loans in accordance with Section 2.9. LIBOR
Rate Loans shall be made by each Revolving Lender at its LIBOR Lending
Office and Alternate Base Rate Loans at its Domestic Lending Office.
(b) Revolving Loan Borrowings.
(i) Notice of Borrowing. The Borrower shall request a Revolving
Loan borrowing by delivering a written Notice of Borrowing (or
telephone notice
33
promptly confirmed in writing by delivery of a written Notice of
Borrowing, which delivery may be by fax) to the Administrative Agent
not later than 11:00 A.M. on the Business Day of the requested
borrowing in the case of Alternate Base Rate Loans, and on the third
Business Day prior to the date of the requested borrowing in the case
of LIBOR Rate Loans. Each such Notice of Borrowing shall be
irrevocable and shall specify (A) that a Revolving Loan is requested,
(B) the date of the requested borrowing (which shall be a Business
Day), (C) the aggregate principal amount to be borrowed and (D)
whether the borrowing shall be comprised of Alternate Base Rate Loans,
LIBOR Rate Loans or a combination thereof, and if LIBOR Rate Loans are
requested, the Interest Period(s) therefor. If the Borrower shall fail
to specify in any such Notice of Borrowing (1) an applicable Interest
Period in the case of a LIBOR Rate Loan, then such notice shall be
deemed to be a request for an Interest Period of one month, or (2) the
Type of Revolving Loan requested, then such notice shall be deemed to
be a request for an Alternate Base Rate Loan hereunder. The
Administrative Agent shall give notice to each Revolving Lender
promptly upon receipt of each Notice of Borrowing, the contents
thereof and each such Revolving Lender's share thereof.
(ii) Minimum Amounts. Each Revolving Loan that is made as an
Alternate Base Rate Loan shall be in a minimum aggregate amount of
$2,500,000 and in integral multiples of $1,000,000 in excess thereof
(or the remaining amount of the Revolving Committed Amount, if less).
Each Revolving Loan that is made as a LIBOR Rate Loan shall be in a
minimum aggregate amount of $2,500,000 and in integral multiples of
$1,000,000 in excess thereof (or the remaining amount of the Revolving
Committed Amount, if less).
(iii) Advances. Each Revolving Lender will make its Revolving
Commitment Percentage of each Revolving Loan borrowing available to
the Administrative Agent for the account of the Borrower at the office
of the Administrative Agent specified in Section 9.2, or at such other
office as the Administrative Agent may designate in writing, upon
reasonable advance notice by 1:00 P.M. on the date specified in the
applicable Notice of Borrowing, in Dollars and in funds immediately
available to the Administrative Agent. Such borrowing will then be
made available to the Borrower by the Administrative Agent by
crediting the account of the Borrower on the books of such office (or
such other account that the Borrower may designate in writing to the
Administrative Agent) with the aggregate of the amounts made available
to the Administrative Agent by the Revolving Lenders and in like funds
as received by the Administrative Agent.
(c) Repayment. Subject to the terms of this Agreement, Revolving Loans
may be borrowed, repaid and reborrowed during the Commitment Period. The
principal amount of all Revolving Loans shall be due and payable in full on
the Revolver Maturity Date, unless accelerated sooner pursuant to Section
7.2.
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(d) Interest. Subject to the provisions of Section 2.8(b), Revolving
Loans shall bear interest as follows:
(i) Alternate Base Rate Loans. During such periods as any
Revolving Loans shall be comprised of Alternate Base Rate Loans, each
such Alternate Base Rate Loan shall bear interest at a per annum rate
equal to the sum of the Alternate Base Rate plus the Applicable
Percentage; and
(ii) LIBOR Rate Loans. During such periods as Revolving Loans
shall be comprised of LIBOR Rate Loans, each such LIBOR Rate Loan
shall bear interest at a per annum rate equal to the sum of the LIBOR
Rate plus the Applicable Percentage.
Interest on Revolving Loans shall be payable in arrears on each
Interest Payment Date.
(e) Revolving Notes; Covenant to Pay. The Borrower's obligation to pay
each Lender's Revolving Loans shall be evidenced, upon such Revolving
Lender's request, by a duly executed promissory note of the Borrower to
such Revolving Lender in substantially the form of Exhibit 2.1(e). The
Borrower covenants and agrees to pay the Revolving Loans in accordance with
the terms of this Agreement and the Revolving Note or Revolving Notes.
SECTION 2.2 TERM LOAN A.
(a) Term Loan A. Subject to the terms and conditions hereof and in
reliance upon the representations and warranties set forth herein, each
Term Loan A Lender severally, but not jointly, agrees to make available to
the Borrower (through the Administrative Agent) on the Closing Date such
Term Loan A Lender's Term Loan A Commitment Percentage of a term loan in
Dollars (the "Term Loan A") in the aggregate principal amount of ONE
HUNDRED MILLION DOLLARS ($100,000,000) (the "Term Loan A Committed Amount")
for the purposes hereinafter set forth. Upon receipt by the Administrative
Agent of the proceeds of the Term Loan A on or prior to the Closing Date,
such proceeds will then be made available to the Borrower on the Closing
Date by the Administrative Agent by crediting the account of the Borrower
on the books of the office of the Administrative Agent specified in Section
9.2, or at such other office as the Administrative Agent may designate in
writing, with the aggregate of such proceeds made available to the
Administrative Agent by the Term Loan A Lenders and in like funds as
received by the Administrative Agent (or by crediting such other account(s)
as directed by the Borrower). The Term Loan A may consist of Alternate Base
Rate Loans or LIBOR Rate Loans, or a combination thereof, as the Borrower
may request; provided, however, that the Term Loan A made on the Closing
Date may only consist of Alternate Base Rate Loans unless the Borrower
delivers a funding indemnity letter, substantially in the form of Exhibit
2.1(a), reasonably acceptable to the Administrative Agent not less than
three (3) Business Days prior to the Closing Date; provided, further, that
any such Alternate Base Rate Loans may be converted to LIBOR Rate Loans in
35
accordance with Section 2.9. LIBOR Rate Loans shall be made by each Term
Loan A Lender at its LIBOR Lending Office and Alternate Base Rate Loans at
its Domestic Lending Office. Amounts repaid or prepaid on the Term Loan A
may not be reborrowed.
(b) Repayment of Term Loan A. The principal amount of the Term Loan A
shall be repaid in twenty (20) consecutive quarterly installments as
follows, unless accelerated sooner pursuant to Section 7.2:
TERM LOAN A PRINCIPAL
PRINCIPAL AMORTIZATION PAYMENT DATES AMORTIZATION PAYMENT
------------------------------------ ----------------------------------------
June 30, 2006 $0
September 30, 2006 $0
December 31, 2006 $0
March 31, 2007 $0
June 30, 2007 $1,250,000
September 30, 2007 $1,250,000
December 31, 2007 $1,250,000
March 31, 2008 $1,250,000
June 30, 2008 $2,500,000
September 30, 2008 $2,500,000
December 31, 2008 $2,500,000
March 31, 2009 $2,500,000
June 30, 2009 $2,500,000
September 30, 2009 $2,500,000
December 31, 2009 $2,500,000
March 31, 2010 $2,500,000
June 30, 2010 $18,750,000
September 30, 2010 $18,750,000
December 31, 2010 $18,750,000
Term Loan A Maturity Date $18,750,000 or the remaining outstanding
principal amount of the Term Loan
(c) Interest on the Term Loan A. Subject to the provisions of Section
2.8, the Term Loan A shall bear interest as follows:
(i) Alternate Base Rate Loans. During such periods as the Term
Loan A shall be comprised of Alternate Base Rate Loans, each such
Alternate Base Rate Loan shall bear interest at a per annum rate equal
to the sum of the Alternate Base Rate plus the Applicable Percentage;
and
(ii) LIBOR Rate Loans. During such periods as the Term Loan A
shall be comprised of LIBOR Rate Loans, each such LIBOR Rate Loan
shall bear interest at a per annum rate equal to the sum of the LIBOR
Rate plus the Applicable Percentage.
36
Interest on the Term Loan A shall be payable in arrears on each
Interest Payment Date.
(d) Term Loan A Notes; Covenant to Pay. The Borrower's obligation to
pay each Term Loan A Lender shall be evidenced, upon such Term Loan A
Lender's request, by a duly executed promissory note of the Borrower to
such Term Loan A Lender in substantially the form of Exhibit 2.2(d). The
Borrower covenants and agrees to pay the Term Loan A in accordance with the
terms of this Agreement and the Term Note A or Term Notes A.
SECTION 2.2 A INTERIM TERM LOAN.
(a) Interim Term Loan. Subject to the terms and conditions hereof and
in reliance upon the representations and warranties set forth herein, the
Interim Term Loan Lender agrees to make available to the Borrower (through
the Administrative Agent) on the Closing Date a term loan in Dollars (the
"Interim Term Loan") in the aggregate principal amount of THREE HUNDRED
MILLION DOLLARS ($300,000,000) (the "Interim Term Loan Committed Amount")
for the purposes hereinafter set forth. Upon receipt by the Administrative
Agent of the proceeds of the Interim Term Loan on or prior to the Closing
Date, such proceeds will then be made available to the Borrower on the
Closing Date by the Administrative Agent by crediting the account of the
Borrower on the books of the office of the Administrative Agent specified
in Section 9.2, or at such other office as the Administrative Agent may
designate in writing, with the aggregate of such proceeds made available to
the Administrative Agent by the Interim Term Loan Lender and in like funds
as received by the Administrative Agent (or by crediting such other
account(s) as directed by the Borrower). The Interim Term Loan may only
consist of Alternate Base Rate Loans. Amounts repaid or prepaid on the
Interim Term Loan may not be reborrowed.
(b) Repayment of the Interim Term Loan. The principal amount of the
Interim Term Loan shall be due and payable in full on the Interim Maturity
Date, unless accelerated sooner pursuant to Section 7.2.
(c) Interest on the Term Loan. Subject to the provisions of Section
2.8, the Interim Term Loan shall bear interest at a per annum rate equal to
the sum of the Alternate Base Rate plus the Applicable Percentage.
Interest on the Interim Term Loan shall be payable on the Interim
Maturity Date.
(d) Interim Term Loan Note; Covenant to Pay. The Borrower's obligation
to pay the Interim Term Loan Lender shall be evidenced, upon the Interim
Term Loan Lender's request, by a duly executed promissory note of the
Borrower to the Interim Term Loan Lender in substantially the form of
Exhibit 2.2A(e). The Borrower covenants and agrees to pay the Interim Term
Loan in accordance with the terms of this Agreement and the Interim Term
Note.
37
SECTION 2.3 LETTER OF CREDIT SUBFACILITY.
(a) Issuance. Subject to the terms and conditions hereof and of the
LOC Documents, if any, and any other terms and conditions which the Issuing
Lender may reasonably require, during the Commitment Period the Issuing
Lender shall issue, and the Revolving Lenders shall participate in, standby
and commercial Letters of Credit for the account of the Borrower from time
to time upon request in a form acceptable to the Issuing Lender; provided,
however, that (i) the aggregate amount of LOC Obligations shall not at any
time exceed SEVENTY-FIVE MILLION DOLLARS ($75,000,000) (the "LOC Committed
Amount"), (ii) the sum of the aggregate principal amount of outstanding
Revolving Loans plus outstanding Swingline Loans plus outstanding LOC
Obligations shall not at any time exceed the Revolving Committed Amount
then in effect, (iii) all Letters of Credit shall be denominated in Dollars
and (iv) Letters of Credit shall be issued for any lawful corporate
purposes and may be issued as standby letters of credit, including in
connection with workers' compensation and other insurance programs. No
Letter of Credit shall have an original expiry date more than twelve (12)
months from the date of issuance; provided, however, so long as no Default
or Event of Default has occurred and is continuing and subject to the other
terms and conditions to the issuance of Letters of Credit hereunder, the
expiry dates of Letters of Credit may be extended annually or periodically
from time to time on the request of the Borrower or by operation of the
terms of the applicable Letter of Credit to a date not more than twelve
(12) months from the date of extension; provided, further, that no Letter
of Credit, as originally issued or as extended, shall have an expiry date
extending beyond the date that is five (5) Business Days prior to the
Revolver Maturity Date. Each Letter of Credit shall comply with the related
LOC Documents. The issuance and expiry date of each Letter of Credit shall
be a Business Day. Each Letter of Credit issued hereunder shall be in a
minimum original face amount of $100,000 or such lesser amount as approved
by the Issuing Lender. The Existing Letters of Credit shall, as of the
Closing Date, be deemed to have been issued pursuant hereto as "Letters of
Credit". The Borrower's reimbursement obligations in respect of each
Existing Letter of Credit, and each Revolving Lender's participation
obligations in connection therewith, shall be governed by the terms of this
Credit Agreement. The Borrower hereby assumes and agrees to pay all
reimbursement obligations of Xxxxxxx & Xxxxxxxxx Services, Inc., with
respect to all Existing Letters of Credit.
(b) Notice and Reports. The request for the issuance of a Letter of
Credit shall be submitted to the Issuing Lender at least three (3) Business
Days prior to the requested date of issuance. The Issuing Lender will
promptly upon request of the Administrative Agent or any Revolving Lender
provide to the Administrative Agent for dissemination to the Revolving
Lenders a detailed report specifying the Letters of Credit which are then
issued and outstanding and any activity with respect thereto which may have
occurred since the date of any prior report, and including therein, among
other things, the account party, the beneficiary, the face amount, expiry
date as well as any payments or expirations which may have occurred. The
Issuing Lender will further provide to the Administrative Agent promptly
upon request copies of the Letters of
38
Credit. The Issuing Lender will provide to the Administrative Agent
promptly upon request a summary report of the nature and extent of LOC
Obligations then outstanding.
(c) Participations. Each Revolving Lender, upon issuance of a Letter
of Credit, shall be deemed to have purchased without recourse a risk
participation from the Issuing Lender in such Letter of Credit and the
obligations arising thereunder and any collateral relating thereto, in each
case in an amount equal to its Revolving Commitment Percentage of the
obligations under such Letter of Credit and shall absolutely,
unconditionally and irrevocably assume, as primary obligor and not as
surety, and be obligated to pay to the Issuing Lender therefor and
discharge when due, its Revolving Commitment Percentage of the obligations
arising under such Letter of Credit; provided that any Person that becomes
a Lender after the Closing Date shall be deemed to have purchased a
Participation Interest in all outstanding Letters of Credit on the date it
becomes a Lender hereunder and any Letter of Credit issued on or after such
date, in each case in accordance with the foregoing terms. Without limiting
the scope and nature of each Revolving Lender's participation in any Letter
of Credit, to the extent that the Issuing Lender has not been reimbursed as
required hereunder or under any LOC Document, each such Revolving Lender
shall pay to the Issuing Lender its Revolving Commitment Percentage of such
unreimbursed drawing in same day funds pursuant to and in accordance with
the provisions of subsection (d) hereof. The obligation of each Revolving
Lender to so reimburse the Issuing Lender shall be absolute and
unconditional and shall not be affected by the occurrence of a Default, an
Event of Default or any other occurrence or event. Any such reimbursement
shall not relieve or otherwise impair the obligation of the Borrower to
reimburse the Issuing Lender under any Letter of Credit, together with
interest as hereinafter provided.
(d) Reimbursement. In the event of any drawing under any Letter of
Credit, the Issuing Lender will promptly notify the Borrower and the
Administrative Agent. The Borrower shall reimburse the Issuing Lender on
the day of drawing under any Letter of Credit (either with the proceeds of
a Revolving Loan obtained hereunder or otherwise) in same day funds as
provided herein or in the LOC Documents. If the Borrower shall fail to
reimburse the Issuing Lender as provided herein, the unreimbursed amount of
such drawing shall bear interest at a per annum rate equal to the ABR
Default Rate. Unless the Borrower shall immediately notify the Issuing
Lender and the Administrative Agent of its intent to otherwise reimburse
the Issuing Lender, the Borrower shall be deemed to have requested a
Mandatory LOC Borrowing in the amount of the drawing as provided in
subsection (e) hereof, the proceeds of which will be used to satisfy the
Reimbursement Obligations. The Borrower's Reimbursement Obligations
hereunder shall be absolute and unconditional under all circumstances
irrespective of any rights of set-off, counterclaim or defense to payment
the Borrower may claim or have against the Issuing Lender, the
Administrative Agent, the Lenders, the beneficiary of the Letter of Credit
drawn upon or any other Person, including without limitation any defense
based on any failure of the Borrower to receive consideration or the
legality, validity, regularity or unenforceability of the Letter of Credit.
The Issuing Lender will promptly notify the other Revolving Lenders of the
amount of any unreimbursed drawing and each Revolving Lender shall promptly
pay to the Administrative Agent for the account of the Issuing
39
Lender, in Dollars and in immediately available funds, the amount of such
Revolving Lender's Revolving Commitment Percentage of such unreimbursed
drawing. Such payment shall be made on the day such notice is received by
such Revolving Lender from the Issuing Lender if such notice is received at
or before 2:00 P.M., otherwise such payment shall be made at or before
12:00 Noon on the Business Day next succeeding the day such notice is
received. If such Revolving Lender does not pay such amount to the Issuing
Lender in full upon such request, such Revolving Lender shall, on demand,
pay to the Administrative Agent for the account of the Issuing Lender
interest on the unpaid amount during the period from the date of such
drawing until such Revolving Lender pays such amount to the Issuing Lender
in full at a rate per annum equal to, if paid within two (2) Business Days
of the date of drawing, the Federal Funds Effective Rate and thereafter at
a rate equal to the Alternate Base Rate. Each Revolving Lender's obligation
to make such payment to the Issuing Lender, and the right of the Issuing
Lender to receive the same, shall be absolute and unconditional, shall not
be affected by any circumstance whatsoever and without regard to the
termination of this Agreement or the Commitments hereunder, the existence
of a Default or Event of Default or the acceleration of the Credit Party
Obligations hereunder and shall be made without any offset, abatement,
withholding or reduction whatsoever.
(e) Repayment with Revolving Loans. On any day on which the Borrower
shall have requested, or been deemed to have requested, a Revolving Loan to
reimburse a drawing under a Letter of Credit, the Administrative Agent
shall give notice to the Revolving Lenders that a Revolving Loan has been
requested or deemed requested in connection with a drawing under a Letter
of Credit, in which case a Revolving Loan borrowing comprised entirely of
Alternate Base Rate Loans (each such borrowing, a "Mandatory LOC
Borrowing") shall be made (without giving effect to any termination of the
Commitments pursuant to Section 7.2) pro rata based on each Revolving
Lender's respective Revolving Commitment Percentage (determined before
giving effect to any termination of the Commitments pursuant to Section
7.2) and the proceeds thereof shall be paid directly to the Issuing Lender
for application to the respective LOC Obligations. Each Revolving Lender
hereby irrevocably agrees to make such Revolving Loans on the day such
notice is received by the Revolving Lenders from the Administrative Agent
if such notice is received at or before 2:00 P.M., otherwise such payment
shall be made at or before 12:00 Noon on the Business Day next succeeding
the day such notice is received, in each case notwithstanding (i) the
amount of Mandatory LOC Borrowing may not comply with the minimum amount
for borrowings of Revolving Loans otherwise required hereunder, (ii)
whether any conditions specified in Section 4.2 are then satisfied, (iii)
whether a Default or an Event of Default then exists, (iv) failure for any
such request or deemed request for Revolving Loan to be made by the time
otherwise required in Section 2.1(b), (v) the date of such Mandatory LOC
Borrowing, or (vi) any reduction in the Revolving Committed Amount after
any such Letter of Credit may have been drawn upon. In the event that any
Mandatory LOC Borrowing cannot for any reason be made on the date otherwise
required above (including, without limitation, as a result of the
occurrence of a Bankruptcy Event), then each such Revolving Lender hereby
agrees that it shall forthwith fund (as of the date the Mandatory LOC
Borrowing would otherwise have occurred, but adjusted for any payments
received from the Borrower on or after
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such date and prior to such purchase) its Participation Interests in the
outstanding LOC Obligations; provided, further, that in the event any
Revolving Lender shall fail to fund its Participation Interest on the day
the Mandatory LOC Borrowing would otherwise have occurred, then the amount
of such Revolving Lender's unfunded Participation Interest therein shall
bear interest payable by such Revolving Lender to the Issuing Lender upon
demand, at the rate equal to, if paid within two (2) Business Days of such
date, the Federal Funds Effective Rate, and thereafter at a rate equal to
the Alternate Base Rate.
(f) Modification, Extension. The issuance of any supplement,
modification, amendment, renewal, or extension to any Letter of Credit
shall, for purposes hereof, be treated in all respects the same as the
issuance of a new Letter of Credit hereunder.
(g) ISP98 and UCP. Unless otherwise expressly agreed by the Issuing
Lender and the Borrower, when a Letter of Credit is issued, (i) the rules
of the "International Standby Practices 1998," published by the Institute
of International Banking Law & Practice (or such later version thereof as
may be in effect at the time of issuance) shall apply to each standby
Letter of Credit, and (ii) the rules of The Uniform Customs and Practice
for Documentary Credits, as most recently published by the International
Chamber of Commerce at the time of issuance, shall apply to each commercial
Letter of Credit.
(h) Conflict with LOC Documents. In the event of any conflict between
this Agreement and any LOC Document (including any letter of credit
application), this Agreement shall control.
(i) Designation of Subsidiaries as Account Parties. Notwithstanding
anything to the contrary set forth in this Agreement, including without
limitation Section 2.3(a), a Letter of Credit issued hereunder may contain
a statement to the effect that such Letter of Credit is issued for the
account of a Subsidiary of the Borrower; provided that, notwithstanding
such statement, the Borrower shall be the actual account party for all
purposes of this Agreement for such Letter of Credit and such statement
shall not affect the Borrower's Reimbursement Obligations hereunder with
respect to such Letter of Credit.
SECTION 2.4 SWINGLINE LOAN SUBFACILITY.
(a) Swingline Commitment. During the Commitment Period, subject to the
terms and conditions hereof, the Swingline Lender, in its individual
capacity, agrees to make certain revolving credit loans to the Borrower
(each a "Swingline Loan" and, collectively, the "Swingline Loans") for the
purposes hereinafter set forth; provided, however, (i) the aggregate
principal amount of Swingline Loans outstanding at any time shall not
exceed TWENTY MILLION DOLLARS ($20,000,000) (the "Swingline Committed
Amount"), and (ii) the sum of the aggregate principal amount of outstanding
Revolving Loans plus outstanding Swingline Loans plus outstanding LOC
Obligations shall not exceed the Revolving Committed Amount then in effect.
Swingline Loans hereunder may be repaid and reborrowed in accordance with
the provisions hereof.
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(b) Swingline Loan Borrowings.
(i) Notice of Borrowing and Disbursement. Upon receiving a Notice
of Borrowing from the Borrower not later than 12:00 Noon on any
Business Day requesting that a Swingline Loan be made, the Swingline
Lender will make Swingline Loans available to the Borrower on the same
Business Day such request is received by the Administrative Agent.
Swingline Loan borrowings hereunder shall be made in minimum amounts
of $500,000 (or the remaining available amount of the Swingline
Committed Amount if less) and in integral amounts of $500,000 in
excess thereof.
(ii) Repayment of Swingline Loans. Each Swingline Loan borrowing
shall be due and payable on the Revolver Maturity Date. The Swingline
Lender may, at any time, in its sole discretion, by written notice to
the Borrower and the Administrative Agent, demand repayment of its
Swingline Loans by way of a Revolving Loan borrowing, in which case
the Borrower shall be deemed to have requested a Revolving Loan
borrowing comprised entirely of Alternate Base Rate Loans in the
amount of such Swingline Loans; provided, however, that, in the
following circumstances, any such demand shall also be deemed to have
been given one Business Day prior to each of (A) the Revolver Maturity
Date, (B) the occurrence of any Bankruptcy Event, (C) upon
acceleration of the Credit Party Obligations hereunder, whether on
account of a Bankruptcy Event or any other Event of Default, and (D)
the exercise of remedies in accordance with the provisions of Section
7.2 hereof (each such Revolving Loan borrowing made on account of any
such deemed request therefor as provided herein being hereinafter
referred to as "Mandatory Swingline Borrowing"). Each Revolving Lender
hereby irrevocably agrees to make such Revolving Loans promptly upon
any such request or deemed request on account of each Mandatory
Swingline Borrowing in the amount and in the manner specified in the
preceding sentence on the date such notice is received by the
Revolving Lenders from the Administrative Agent if such notice is
received at or before 2:00 P.M., otherwise such payment shall be made
at or before 12:00 Noon on the Business Day next succeeding the date
such notice is received notwithstanding (1) the amount of Mandatory
Swingline Borrowing may not comply with the minimum amount for
borrowings of Revolving Loans otherwise required hereunder, (2)
whether any conditions specified in Section 4.2 are then satisfied,
(3) whether a Default or an Event of Default then exists, (4) failure
of any such request or deemed request for Revolving Loans to be made
by the time otherwise required in Section 2.1(b)(i), (5) the date of
such Mandatory Swingline Borrowing, or (6) any reduction in the
Revolving Committed Amount or termination of the Revolving Commitments
immediately prior to such Mandatory Swingline Borrowing or
contemporaneously therewith. In the event that any Mandatory Swingline
Borrowing cannot for any reason be made on the date otherwise required
above (including, without limitation, as a result of the commencement
of a proceeding under the Bankruptcy Code), then each Revolving Lender
hereby agrees that it shall forthwith purchase
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(as of the date the Mandatory Swingline Borrowing would otherwise have
occurred, but adjusted for any payments received from the Borrower on
or after such date and prior to such purchase) from the Swingline
Lender such Participation Interest in the outstanding Swingline Loans
as shall be necessary to cause each such Revolving Lender to share in
such Swingline Loans ratably based upon its respective Revolving
Commitment Percentage (determined before giving effect to any
termination of the Commitments pursuant to Section 7.2); provided that
(x) all interest payable on the Swingline Loans shall be for the
account of the Swingline Lender until the date as of which the
respective Participation Interest is purchased, and (y) at the time
any purchase of a Participation Interest pursuant to this sentence is
actually made, the purchasing Revolving Lender shall be required to
pay to the Swingline Lender interest on the principal amount of such
Participation Interest purchased for each day from and including the
day upon which the Mandatory Swingline Borrowing would otherwise have
occurred to but excluding the date of payment for such Participation
Interest, at the rate equal to, if paid within two (2) Business Days
of the date of the Mandatory Swingline Borrowing, the Federal Funds
Effective Rate, and thereafter at a rate equal to the Alternate Base
Rate.
(c) Interest on Swingline Loans. Subject to the provisions of Section
2.8(b), Swingline Loans shall bear interest at a per annum rate equal to
the Alternate Base Rate plus the Applicable Percentage for Revolving Loans
that are Alternate Base Rate Loans. Interest on Swingline Loans shall be
payable in arrears on each Interest Payment Date.
(d) Swingline Note; Covenant to Pay. The Swingline Loans shall be
evidenced by a duly executed promissory note of the Borrower to the
Swingline Lender in the original amount of the Swingline Committed Amount
and substantially in the form of Exhibit 2.4(d). The borrower covenants and
agrees to pay the Swingline Loans in accordance with the terms of this
Credit Agreement and the Swingline Note.
SECTION 2.5 FEES.
(a) Unused Fee. In consideration of the Revolving Commitments, the
Borrower agrees to pay to the Administrative Agent, for the ratable benefit
of the Revolving Lenders, an Unused Fee (the "Unused Fee") in an amount
equal to the Applicable Percentage per annum on the average daily unused
amount of the Revolving Committed Amount. For purposes of computation of
the Unused Fee, LOC Obligations shall be considered usage of the Revolving
Committed Amount but Swingline Loans shall not be considered usage of the
Revolving Committed Amount. The Unused Fee shall be payable quarterly in
arrears on the last Business Day of each calendar quarter.
(b) Letter of Credit Fees. In consideration of the LOC Commitments,
the Borrower agrees to pay to the Administrative Agent, for the ratable
benefit of the Revolving Lenders, a fee (the "Letter of Credit Fee") equal
to the Applicable Percentage for Revolving Loans that are LIBOR Rate Loans
per annum on the average daily maximum amount available to be drawn under
each Letter of Credit from the date of
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issuance to the date of expiration. The Letter of Credit Fee shall each be
payable quarterly in arrears on the last Business Day of each calendar
quarter.
(c) Issuing Lender Fees. In addition to the Letter of Credit Fees
payable pursuant to subsection (b) hereof, the Borrower shall pay to the
Issuing Lender for its own account without sharing by the other Lenders the
reasonable and customary charges from time to time of the Issuing Lender
with respect to the amendment, transfer, administration, cancellation and
conversion of, and drawings under, such Letters of Credit (collectively,
the "Issuing Lender Fees"). The Issuing Lender may charge, and retain for
its own account without sharing by the other Lenders, an additional facing
fee (the "Letter of Credit Facing Fee") of 0.125% per annum on the average
daily maximum amount available to be drawn under each such Letter of Credit
issued by it. The Issuing Lender Fees and the Letter of Credit Facing Fee
shall be payable quarterly in arrears on the last Business Day of each
calendar quarter.
(d) Administrative Fee. The Borrower agrees to pay to the
Administrative Agent the annual administrative fee as described in the Fee
Letter.
SECTION 2.6 COMMITMENT REDUCTIONS.
(a) Voluntary Reductions. The Borrower shall have the right to
terminate or permanently reduce the unused portion of the Revolving
Committed Amount at any time or from time to time upon not less than five
(5) Business Days' prior written notice to the Administrative Agent (which
shall notify the Lenders thereof as soon as practicable) of each such
termination or reduction, which notice shall specify the effective date
thereof and the amount of any such reduction which shall be in a minimum
amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof
and shall be irrevocable and effective upon receipt by the Administrative
Agent; provided that no such reduction or termination shall be permitted if
after giving effect thereto, and to any prepayments of the Revolving Loans
made on the effective date thereof, the sum of the aggregate principal
amount of outstanding Revolving Loans plus outstanding Swingline Loans plus
outstanding LOC Obligations would exceed the Revolving Committed Amount
then in effect.
(b) Swingline Committed Amount. If the Revolving Committed Amount is
reduced pursuant to Section 2.6(a) above the then current Swingline
Committed Amount, the Swingline Committed Amount shall automatically be
reduced by an amount such that the Swingline Committed Amount equals the
Revolving Committed Amount.
(c) Maturity Date. The Revolving Commitments, the Swingline Commitment
and the LOC Commitment shall automatically terminate on the Revolver
Maturity Date.
SECTION 2.7 PREPAYMENTS.
(a) Optional Prepayments. The Borrower shall have the right to prepay
Loans in whole or in part from time to time; provided, however, that each
partial prepayment of
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a Revolving Loan or Term Loan shall be in a minimum principal amount of
$2,500,000 and integral multiples of $1,000,000 in excess thereof (or the
remaining outstanding principal amount), and each partial prepayment of a
Swingline Loan shall be in a minimum principal amount of $500,000 and
integral multiples of $500,000 in excess thereof (or the remaining
outstanding principal amount). The Borrower shall give three (3) Business
Days' irrevocable notice of prepayment in the case of LIBOR Rate Loans and
same-day irrevocable notice on any Business Day in the case of Alternate
Base Rate Loans, to the Administrative Agent (which shall notify the
Lenders thereof as soon as practicable). To the extent that the Borrower
elects to prepay either Term Loan, amounts prepaid under this Section shall
be (i) applied ratably to the remaining principal installments thereof and
(ii) applied first to Alternate Base Rate Loans and then to LIBOR Rate
Loans in direct order of Interest Period maturities. All prepayments under
this Section shall be subject to Section 2.16, but otherwise without
premium or penalty. Interest on the principal amount prepaid shall be
payable on the next occurring Interest Payment Date that would have
occurred had such loan not been prepaid or, at the request of the
Administrative Agent, interest on the principal amount prepaid shall be
payable on any date that a prepayment is made hereunder through the date of
prepayment. Amounts prepaid on the Revolving Loans and the Swingline Loans
may be reborrowed in accordance with the terms hereof. Amounts prepaid on
the Term Loan may not be reborrowed.
(b) Mandatory Prepayments.
(i) Revolving Committed Amount. If at any time after the Closing
Date, the sum of the aggregate principal amount of outstanding
Revolving Loans plus outstanding Swingline Loans plus outstanding LOC
Obligations shall exceed the Revolving Committed Amount, the Borrower
shall immediately prepay the Loans in an amount sufficient to
eliminate such excess (such prepayment to be applied as set forth in
clause (vii) below).
(ii) Asset Dispositions. Promptly following any Asset Disposition
(or related series of Asset Dispositions), the Borrower shall prepay
the Loans and/or cash collateralize the LOC Obligations in an
aggregate amount equal to one hundred percent (100%) of the Net Cash
Proceeds derived from such Asset Disposition (or related series of
Asset Dispositions) (such prepayment to be applied as set forth in
clause (vii) below); provided, however, that, so long as no Default or
Event of Default has occurred and is continuing, such Net Cash
Proceeds shall not be required to be so applied (A) until the
aggregate amount of Asset Dispositions in any fiscal year is equal to
or greater than $5,000,000 and (B) to the extent the Borrower delivers
to the Administrative Agent a certificate stating that the Credit
Parties intend to use such Net Cash Proceeds to acquire like assets
useful to the business of the Credit Parties within 180 days of the
receipt of such Net Cash Proceeds, it being expressly agreed that Net
Cash Proceeds not so reinvested shall be applied to prepay the Loans
immediately thereafter (such prepayment to be applied as set forth in
clause (vii) below).
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(iii) Debt Issuances. Immediately upon receipt by any Credit
Party or any of its Subsidiaries of proceeds from any Debt Issuance,
the Borrower shall prepay the Loans in an aggregate amount equal to
one hundred percent (100%) of the Net Cash Proceeds of such Debt
Issuance (such prepayment to be applied as set forth in clause (vii)
below).
(iv) Issuances of Equity. Immediately upon receipt by any Credit
Party or any of its Subsidiaries of proceeds from any Equity Issuance,
the Borrower shall prepay the Loans in an aggregate amount equal to
one hundred percent (100%) of the Net Cash Proceeds of such Equity
Issuance (such prepayment to be applied as set forth in clause (vii)
below).
(v) Excess Cash Flow. Within ninety (90) days after the end of
each fiscal year (commencing with the fiscal year ending December 31,
2006), if the Borrower's Total Leverage Ratio as of the end of such
fiscal year is greater than 3.25 to 1.0 (with compliance to be
demonstrated upon receipt of the financial statements to be delivered
pursuant to Section 5.1(a)), the Borrower shall prepay the Loans in an
aggregate amount equal to 50% of the Excess Cash Flow for such fiscal
year (such prepayments to be applied as set forth in clause (vii)
below).
(vi) Recovery Event. Immediately upon receipt by any Credit Party
or any of its Subsidiaries of proceeds from any Recovery Event, the
Borrower shall prepay the Loans in an aggregate amount equal to one
hundred percent (100%) of the Net Cash Proceeds of such Recovery Event
(such prepayment to be applied as set forth in clause (vii) below);
provided, however, that, so long as no Default or Event of Default has
occurred and is continuing, such Net Cash Proceeds shall not be
required to be so applied to the extent the Borrower delivers to the
Administrative Agent a certificate stating that Credit Parties intend
to use such Net Cash Proceeds to repair or replace such damaged
properties within 270 days of the receipt of such Net Cash Proceeds,
it being expressly agreed that any Net Cash Proceeds not so reinvested
shall be applied to prepay the Loans and/or cash collateralize the LOC
Obligations immediately thereafter (such prepayment to be applied as
set forth in clause (vii) below).
(vii) Application of Mandatory Prepayments. All amounts required
to be paid pursuant to this Section shall be applied as follows:
(A) with respect to all amounts prepaid pursuant to Section
2.7(b)(i), (1) first to the outstanding Swingline Loans and (2)
second to the outstanding Revolving Loans; and
(B) (y) with respect to all amounts prepaid pursuant to
Sections 2.8(b)(ii) through (iv) and (vi), to the Term Loan A and
to the extent then outstanding, the Interim Term Loan (ratably to
the remaining amortization payments thereof) and (z) with respect
to all amounts prepaid pursuant to Sections 2.8(b)(v), to the
Term Loan A (ratably to the
46
remaining amortization payments thereof). Within the parameters
of the applications set forth above, prepayments shall be applied
first to Alternate Base Rate Loans and then to LIBOR Rate Loans
in direct order of Interest Period maturities. All prepayments
under this Section shall be subject to Section 2.16 and be
accompanied by interest on the principal amount prepaid through
the date of prepayment. Notwithstanding the foregoing, in the
event that a mandatory prepayment made under this Section would
result in funding losses resulting from the prepayment of LIBOR
Rate Loans other than on the last day of the applicable interest
period, any such amounts so required to be prepaid, may at the
Borrower's option, be deposited into an escrow account under the
sole dominion and control of the Administrative Agent to repay
such Loans upon the last day of the applicable Interest Period.
(c) Hedging Obligations Unaffected. Any repayment or prepayment made
pursuant to this Section shall not affect the Borrower's obligation to
continue to make payments under any Secured Hedging Agreement, which shall
remain in full force and effect notwithstanding such repayment or
prepayment, subject to the terms of such Secured Hedging Agreement.
SECTION 2.8 DEFAULT RATE AND PAYMENT DATES.
(a) If all or a portion of the principal amount of any Loan which is a
LIBOR Rate Loan shall not be paid when due or continued as a LIBOR Rate
Loan in accordance with the provisions of Section 2.9 (whether at the
stated maturity, by acceleration or otherwise), such overdue principal
amount of such Loan shall be converted to an Alternate Base Rate Loan at
the end of the Interest Period applicable thereto.
(b) (i) If all or a portion of the principal amount of any LIBOR Rate
Loan shall not be paid when due, such overdue amount shall bear interest at
a rate per annum which is equal to the rate that would otherwise be
applicable thereto plus 2%, until the end of the Interest Period applicable
thereto, and thereafter at a rate per annum which is equal to the Alternate
Base Rate plus the sum of the Applicable Percentage then in effect for
Alternate Base Rate Loans and 2% (the "ABR Default Rate") or (ii) if any
interest payable on the principal amount of any Loan or any fee or other
amount, including the principal amount of any Alternate Base Rate Loan,
payable hereunder shall not be paid when due (whether at the stated
maturity, by acceleration or otherwise), such overdue amount shall bear
interest at a rate per annum which is equal to the ABR Default Rate, in
each case from the date of such non-payment until such amount is paid in
full (after as well as before judgment). Upon the occurrence, and during
the continuance, of any other Event of Default hereunder, at the option of
the Required Lenders, the principal of and, to the extent permitted by law,
interest on the Loans and any other amounts owing hereunder or under the
other Credit Documents shall bear interest, payable on demand, at a per
annum rate which is (A) in the case of principal, the rate that would
otherwise be applicable thereto plus 2% or (B) in the case of interest,
fees or other amounts, the ABR Default Rate (after as well as before
judgment).
47
(c) Interest on each Loan shall be payable in arrears on each Interest
Payment Date; provided that interest accruing pursuant to paragraph (b) of
this Section shall be payable from time to time on demand.
SECTION 2.9 CONVERSION OPTIONS.
(a) The Borrower may, in the case of Revolving Loans and the Term
Loan, elect from time to time to convert Alternate Base Rate Loans to LIBOR
Rate Loans, by delivering a Notice of Conversion/Extension to the
Administrative Agent at least three (3) Business Days prior to the proposed
date of conversion. In addition, the Borrower may elect from time to time
to convert all or any portion of a LIBOR Rate Loan to an Alternate Base
Rate Loan by giving the Administrative Agent irrevocable written notice
thereof by 11:00 A.M. one (1) Business Day prior to the proposed date of
conversion. If the date upon which an Alternate Base Rate Loan is to be
converted to a LIBOR Rate Loan is not a Business Day, then such conversion
shall be made on the next succeeding Business Day and during the period
from such last day of an Interest Period to such succeeding Business Day
such Loan shall bear interest as if it were an Alternate Base Rate Loan.
LIBOR Rate Loans may only be converted to Alternate Base Rate Loans on the
last day of the applicable Interest Period. If the date upon which a LIBOR
Rate Loan is to be converted to an Alternate Base Rate Loan is not a
Business Day, then such conversion shall be made on the next succeeding
Business Day and during the period from such last day of an Interest Period
to such succeeding Business Day such Loan shall bear interest as if it were
an Alternate Base Rate Loan. All or any part of outstanding Alternate Base
Rate Loans may be converted as provided herein; provided that (i) no Loan
may be converted into a LIBOR Rate Loan when any Default or Event of
Default has occurred and is continuing and (ii) partial conversions shall
be in an aggregate principal amount of $2,500,000 or a whole multiple of
$1,000,000 in excess thereof. All or any part of outstanding LIBOR Rate
Loans may be converted as provided herein; provided that partial
conversions shall be in an aggregate principal amount of $2,500,000 or a
whole multiple of $1,000,000 in excess thereof.
(b) Any LIBOR Rate Loans may be continued as such upon the expiration
of an Interest Period with respect thereto by compliance by the Borrower
with the notice provisions contained in Section 2.9(a); provided, that no
LIBOR Rate Loan may be continued as such when any Default or Event of
Default has occurred and is continuing, in which case such Loan shall be
automatically converted to an Alternate Base Rate Loan at the end of the
applicable Interest Period with respect thereto. If the Borrower shall fail
to give timely notice of an election to continue a LIBOR Rate Loan, or the
continuation of LIBOR Rate Loans is not permitted hereunder, such LIBOR
Rate Loans shall be automatically converted to Alternate Base Rate Loans at
the end of the applicable Interest Period with respect thereto.
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SECTION 2.10 COMPUTATION OF INTEREST AND FEES; USURY.
(a) Interest payable hereunder with respect to any Alternate Base Rate
Loan based on the Prime Rate shall be calculated on the basis of a year of
365 days (or 366 days, as applicable) for the actual days elapsed. All
other fees, interest and all other amounts payable hereunder shall be
calculated on the basis of a 360-day year for the actual days elapsed. The
Administrative Agent shall as soon as practicable notify the Borrower and
the Lenders of each determination of a LIBOR Rate on the Business Day of
the determination thereof. Any change in the interest rate on a Loan
resulting from a change in the Alternate Base Rate shall become effective
as of the opening of business on the day on which such change in the
Alternate Base Rate shall become effective. The Administrative Agent shall
as soon as practicable notify the Borrower and the Lenders of the effective
date and the amount of each such change.
(b) Each determination of an interest rate by the Administrative Agent
pursuant to any provision of this Agreement shall be conclusive and binding
on the Borrower and the Lenders in the absence of manifest error. The
Administrative Agent shall, at the request of the Borrower, deliver to the
Borrower a statement showing the computations used by the Administrative
Agent in determining any interest rate.
(c) It is the intent of the Lenders and the Credit Parties to conform
to and contract in strict compliance with applicable usury law from time to
time in effect. All agreements between the Lenders and the Credit Parties
are hereby limited by the provisions of this subsection which shall
override and control all such agreements, whether now existing or hereafter
arising and whether written or oral. In no way, nor in any event or
contingency (including but not limited to prepayment or acceleration of the
maturity of any Credit Party Obligation), shall the interest taken,
reserved, contracted for, charged, or received under this Agreement, under
the Notes or otherwise, exceed the maximum nonusurious amount permissible
under applicable law. If, from any possible construction of any of the
Credit Documents or any other document, interest would otherwise be payable
in excess of the maximum nonusurious amount, any such construction shall be
subject to the provisions of this paragraph and such interest shall be
automatically reduced to the maximum nonusurious amount permitted under
applicable law, without the necessity of execution of any amendment or new
document. If any Lender shall ever receive anything of value which is
characterized as interest on the Loans under applicable law and which
would, apart from this provision, be in excess of the maximum nonusurious
amount, an amount equal to the amount which would have been excessive
interest shall, without penalty, be applied to the reduction of the
principal amount owing on the Loans and not to the payment of interest, or
refunded to the Borrower or the other payor thereof if and to the extent
such amount which would have been excessive exceeds such unpaid principal
amount of the Loans. The right to demand payment of the Loans or any other
Indebtedness evidenced by any of the Credit Documents does not include the
right to receive any interest which has not otherwise accrued on the date
of such demand, and the Lenders do not intend to charge or receive any
unearned interest in the event of such demand. All interest paid or agreed
to be paid to the Lenders with respect to the Loans shall, to the extent
permitted by applicable law,
49
be amortized, prorated, allocated, and spread throughout the full stated
term (including any renewal or extension) of the Loans so that the amount
of interest on account of such Indebtedness does not exceed the maximum
nonusurious amount permitted by applicable law.
SECTION 2.11 PRO RATA TREATMENT AND PAYMENTS.
(a) Allocation of Payments Prior to Exercise of Remedies. Each
borrowing of Revolving Loans and any reduction of the Revolving Commitments
shall be made pro rata according to the respective Revolving Commitment
Percentages of the Revolving Lenders. Unless otherwise required by the
terms of this Agreement, each payment under this Agreement or any Note
shall be applied, first, to any fees then due and owing by the Borrower
pursuant to Section 2.5, second, to interest then due and owing hereunder
and under the Notes of the Borrower and, third, to principal then due and
owing hereunder and under the Notes of the Borrower. Each payment on
account of any fees pursuant to Section 2.5 shall be made pro rata in
accordance with the respective amounts due and owing (except as to the
Letter of Credit Facing Fees and the Issuing Lender Fees). Each payment
(other than prepayments) by the Borrower on account of principal of and
interest on the Revolving Loans and on the Term Loans, as applicable, shall
be applied to such Loans, as applicable, on a pro rata basis in accordance
with the terms of Section 2.7(a) hereof. Each optional prepayment on
account of principal of the Loans shall be applied in accordance with
Section 2.7(a). Each mandatory prepayment on account of principal of the
Loans shall be applied in accordance with Section 2.7(b). All payments
(including prepayments) to be made by the Borrower on account of principal,
interest and fees shall be made without defense, set-off or counterclaim
(except as provided in Section 2.17(b)) and shall be made to the
Administrative Agent for the account of the Lenders at the Administrative
Agent's office specified on Section 9.2 in Dollars and in immediately
available funds not later than 1:00 P.M. on the date when due. The
Administrative Agent shall distribute such payments to the Lenders entitled
thereto promptly upon receipt in like funds as received. If any payment
hereunder (other than payments on the LIBOR Rate Loans) becomes due and
payable on a day other than a Business Day, such payment shall be extended
to the next succeeding Business Day, and, with respect to payments of
principal, interest thereon shall be payable at the then applicable rate
during such extension. If any payment on a LIBOR Rate Loan becomes due and
payable on a day other than a Business Day, such payment date shall be
extended to the next succeeding Business Day unless the result of such
extension would be to extend such payment into another calendar month, in
which event such payment shall be made on the immediately preceding
Business Day.
(b) Allocation of Payments After Exercise of Remedies. Notwithstanding
any other provisions of this Agreement to the contrary, after the exercise
of remedies (other than the invocation of default interest pursuant to
Section 2.8(b)) by the Administrative Agent or the Lenders pursuant to
Section 7.2 (or after the Commitments shall automatically terminate and the
Loans (with accrued interest thereon) and all other amounts under the
Credit Documents (including without limitation the maximum amount of all
contingent liabilities under Letters of Credit) shall automatically become
due and
50
payable in accordance with the terms of such Section), all amounts
collected or received by the Administrative Agent or any Lender on account
of the Credit Party Obligations or any other amounts outstanding under any
of the Credit Documents or in respect of the Collateral shall be paid over
or delivered as follows (irrespective of whether the following costs,
expenses, fees, interest, premiums, scheduled periodic payments or Credit
Party Obligations are allowed, permitted or recognized as a claim in any
proceeding resulting from the occurrence of a Bankruptcy Event):
FIRST, to the payment of all reasonable out-of-pocket costs and
expenses (including without limitation reasonable attorneys' fees) of
the Administrative Agent in connection with enforcing the rights of
the Lenders under the Credit Documents and any protective advances
made by the Administrative Agent with respect to the Collateral under
or pursuant to the terms of the Security Documents;
SECOND, to the payment of any fees owed to the Administrative
Agent and the Issuing Lender
THIRD, to the payment of all reasonable out-of-pocket costs and
expenses (including without limitation, reasonable attorneys' fees) of
each of the Lenders in connection with enforcing its rights under the
Credit Documents or otherwise with respect to the Credit Party
Obligations owing to such Lender;
FOURTH, to the payment of all of the Credit Party Obligations
consisting of accrued fees and interest, and including, with respect
to any Secured Hedging Agreement, any fees, premiums and scheduled
periodic payments due under such Secured Hedging Agreement and any
interest accrued thereon;
FIFTH, to the payment of the outstanding principal amount of the
Credit Party Obligations and the payment or cash collateralization of
the outstanding LOC Obligations, and including with respect to any
Secured Hedging Agreement, any breakage, termination or other payments
due under such Secured Hedging Agreement and any interest accrued
thereon;
SIXTH, to all other Credit Party Obligations and other
obligations which shall have become due and payable under the Credit
Documents or otherwise and not repaid pursuant to clauses "FIRST"
through "FIFTH" above; and
SEVENTH, to the payment of the surplus, if any, to whoever may be
lawfully entitled to receive such surplus.
In carrying out the foregoing, (a) amounts received shall be applied
in the numerical order provided until exhausted prior to application to the
next succeeding category; (b) each of the Lenders and any Hedging Agreement
Provider shall receive an amount equal to its pro rata share (based on the
proportion that the then outstanding Loans and LOC Obligations held by such
Lender or the outstanding obligations payable
51
to such Hedging Agreement Provider bears to the aggregate then outstanding
Loans and LOC Obligations and obligations payable under all Secured Hedging
Agreements) of amounts available to be applied pursuant to clauses "THIRD",
"FOURTH", "FIFTH" and "SIXTH" above; and (c) to the extent that any amounts
available for distribution pursuant to clause "FIFTH" above are
attributable to the issued but undrawn amount of outstanding Letters of
Credit, such amounts shall be held by the Administrative Agent in a cash
collateral account and applied (i) first, to reimburse the Issuing Lender
from time to time for any drawings under such Letters of Credit and (ii)
then, following the expiration of all Letters of Credit, to all other
obligations of the types described in clauses "FIFTH" and "SIXTH" above in
the manner provided in this Section. Notwithstanding the foregoing terms of
this Section, only Collateral proceeds and payments under the Guaranty (as
opposed to ordinary course principal, interest and fee payments hereunder)
shall be applied to obligations under any Secured Hedging Agreement.
SECTION 2.12 NON-RECEIPT OF FUNDS BY THE ADMINISTRATIVE AGENT.
(a) Unless the Administrative Agent shall have been notified in
writing by a Lender prior to the date a Loan is to be made by such Lender
(which notice shall be effective upon receipt) that such Lender does not
intend to make the proceeds of such Loan available to the Administrative
Agent, the Administrative Agent may assume that such Lender has made such
proceeds available to the Administrative Agent on such date, and the
Administrative Agent may in reliance upon such assumption (but shall not be
required to) make available to the Borrower a corresponding amount. If such
corresponding amount is not in fact made available to the Administrative
Agent, the Administrative Agent shall be able to recover such corresponding
amount from such Lender. If such Lender does not pay such corresponding
amount forthwith upon the Administrative Agent's demand therefor, the
Administrative Agent will promptly notify the Borrower, and the Borrower
shall immediately pay such corresponding amount to the Administrative
Agent. The Administrative Agent shall also be entitled to recover from the
Lender or the Borrower, as the case may be, interest on such corresponding
amount in respect of each day from the date such corresponding amount was
made available by the Administrative Agent to the Borrower to the date such
corresponding amount is recovered by the Administrative Agent at a per
annum rate equal to (i) from the Borrower at the applicable rate for the
applicable borrowing pursuant to the Notice of Borrowing and (ii) from a
Lender at the Federal Funds Effective Rate.
(b) Unless the Administrative Agent shall have been notified in
writing by the Borrower, prior to the date on which any payment is due from
the Borrower hereunder (which notice shall be effective upon receipt) that
the Borrower does not intend to make such payment, the Administrative Agent
may assume that the Borrower has made such payment when due, and the
Administrative Agent may in reliance upon such assumption (but shall not be
required to) make available to each Lender on such payment date an amount
equal to the portion of such assumed payment to which such Lender is
entitled hereunder, and if the Borrower has not in fact made such payment
to the Administrative Agent, such Lender shall, on demand, repay to the
Administrative Agent the amount
52
made available to such Lender. If such amount is repaid to the
Administrative Agent on a date after the date such amount was made
available to such Lender, such Lender shall pay to the Administrative Agent
on demand interest on such amount in respect of each day from the date such
amount was made available by the Administrative Agent to such Lender to the
date such amount is recovered by the Administrative Agent at a per annum
rate equal to the Federal Funds Effective Rate.
(c) A certificate of the Administrative Agent submitted to the
Borrower or any Lender with respect to any amount owing under this Section
shall be conclusive in the absence of manifest error.
SECTION 2.13 INABILITY TO DETERMINE INTEREST RATE.
Notwithstanding any other provision of this Agreement, if (a) the
Administrative Agent shall reasonably determine (which determination shall be
conclusive and binding absent manifest error) that, by reason of circumstances
affecting the relevant market, reasonable and adequate means do not exist for
ascertaining LIBOR for such Interest Period, or (b) the Required Lenders shall
reasonably determine (which determination shall be conclusive and binding absent
manifest error) that the LIBOR Rate does not adequately and fairly reflect the
cost to such Lenders of funding LIBOR Rate Loans that the Borrower has requested
be outstanding as a LIBOR Tranche during such Interest Period, the
Administrative Agent shall forthwith give telephone notice of such
determination, confirmed in writing, to the Borrower, and the Lenders at least
two (2) Business Days prior to the first day of such Interest Period. Unless the
Borrower shall have notified the Administrative Agent upon receipt of such
telephone notice that it wishes to rescind or modify its request regarding such
LIBOR Rate Loans, any Loans that were requested to be made as LIBOR Rate Loans
shall be made as Alternate Base Rate Loans and any Loans that were requested to
be converted into or continued as LIBOR Rate Loans shall remain as or be
converted into Alternate Base Rate Loans. Until any such notice has been
withdrawn by the Administrative Agent, no further Loans shall be made as,
continued as, or converted into, LIBOR Rate Loans for the Interest Periods so
affected.
SECTION 2.14 ILLEGALITY.
Notwithstanding any other provision of this Agreement, if the adoption of
or any change in any Requirement of Law or in the interpretation or application
thereof by the relevant Governmental Authority to any Lender shall make it
unlawful for such Lender or its LIBOR Lending Office to make or maintain LIBOR
Rate Loans as contemplated by this Agreement or to obtain in the interbank
eurodollar market through its LIBOR Lending Office the funds with which to make
such Loans, (a) such Lender shall promptly notify the Administrative Agent and
the Borrower thereof, (b) the commitment of such Lender hereunder to make LIBOR
Rate Loans or continue LIBOR Rate Loans as such shall forthwith be suspended
until the Administrative Agent, on behalf of such Lender, shall give notice that
the condition or situation which gave rise to the suspension shall no longer
exist, and (c) such Lender's Loans then outstanding as LIBOR Rate Loans, if any,
shall be converted on the last day of the Interest Period for such Loans or
within such earlier period as required by law as Alternate Base Rate Loans. The
Borrower hereby agrees promptly to pay any Lender, upon its demand, any
additional amounts necessary
53
to compensate such Lender for actual and direct costs (but not including
anticipated profits) reasonably incurred by such Lender in making any repayment
in accordance with this Section including, but not limited to, any interest or
fees payable by such Lender to lenders of funds obtained by it in order to make
or maintain its LIBOR Rate Loans hereunder. A certificate as to any additional
amounts payable pursuant to this Section submitted by such Lender, through the
Administrative Agent, to the Borrower shall be conclusive in the absence of
manifest error. Each Lender agrees to use reasonable efforts (including
reasonable efforts to change its LIBOR Lending Office) to avoid or to minimize
any amounts which may otherwise be payable pursuant to this Section; provided,
however, that such efforts shall not cause the imposition on such Lender of any
additional costs or legal or regulatory burdens deemed by such Lender in its
sole discretion to be material.
SECTION 2.15 REQUIREMENTS OF LAW.
(a) If the adoption of or any change in any Requirement of Law or in
the interpretation or application thereof or compliance by any Lender with
any request or directive (whether or not having the force of law) from any
central bank or other Governmental Authority made subsequent to the date
hereof:
(i) shall subject such Lender to any tax of any kind whatsoever
with respect to any Letter of Credit, any Participation Interest
therein, or any application relating thereto, any LIBOR Rate Loan made
by it, or change the basis of taxation of payments to such Lender in
respect thereof (except for changes in the rate of tax on the overall
net income of such Lender);
(ii) shall impose, modify or hold applicable any reserve, special
deposit, compulsory loan or similar requirement against assets held
by, deposits or other liabilities in or for the account of, advances,
loans or other extensions of credit by, or any other acquisition of
funds by, any office of such Lender which is not otherwise included in
the determination of the LIBOR Rate hereunder; or
(iii) shall impose on such Lender any other condition;
and the result of any of the foregoing is to increase the cost to such
Lender of making or maintaining LIBOR Rate Loans or the Letters of Credit
or the Participation Interests therein or to reduce any amount receivable
hereunder or under any Note, then, in any such case, the Credit Parties
shall promptly pay such Lender, upon its demand, any additional amounts
necessary to compensate such Lender for such additional cost or reduced
amount receivable which such Lender reasonably deems to be material as
determined by such Lender with respect to its LIBOR Rate Loans or Letters
of Credit. A certificate as to any additional amounts payable pursuant to
this Section submitted by such Lender, through the Administrative Agent, to
the Borrower shall be conclusive in the absence of manifest error. Each
Lender agrees to use reasonable efforts (including reasonable efforts to
change its Domestic Lending Office or LIBOR Lending Office, as the case may
be) to avoid or to minimize any amounts which might otherwise be payable
pursuant to this paragraph of this Section; provided, however, that such
efforts shall not
54
cause the imposition on such Lender of any additional costs or legal or
regulatory burdens deemed by such Lender in its sole discretion to be
material.
(b) If any Lender shall have reasonably determined that the adoption
of or any change in any Requirement of Law regarding capital adequacy or in
the interpretation or application thereof or compliance by such Lender or
any corporation controlling such Lender with any request or directive
regarding capital adequacy (whether or not having the force of law) from
any central bank or Governmental Authority made subsequent to the date
hereof does or shall have the effect of reducing the rate of return on such
Lender's or such corporation's capital as a consequence of its obligations
hereunder to a level below that which such Lender in its sole discretion or
such corporation could have achieved but for such adoption, change or
compliance (taking into consideration such Lender's or such corporation's
policies with respect to capital adequacy) by an amount reasonably deemed
by such Lender to be material, then from time to time, within fifteen (15)
days after demand by such Lender, the Credit Parties shall pay to such
Lender such additional amount as shall be certified by such Lender as being
reasonably required to compensate it for such reduction. Such a certificate
as to any additional amounts payable under this Section submitted by a
Lender (which certificate shall include a description of the basis for the
computation), through the Administrative Agent, to the Borrower shall be
conclusive absent manifest error.
(c) The agreements in this Section shall survive the termination of
this Agreement and payment of the Credit Party Obligations.
SECTION 2.16 INDEMNITY.
The Credit Parties hereby agree to indemnify each Lender and to hold such
Lender harmless from any funding loss or expense which such Lender may sustain
or incur as a consequence of (a) default by the Borrower in payment of the
principal amount of or interest on any Loan by such Lender in accordance with
the terms hereof, (b) default by the Borrower in accepting a borrowing after the
Borrower has given a notice in accordance with the terms hereof, (c) default by
the Borrower in making any prepayment after the Borrower has given a notice in
accordance with the terms hereof, and/or (d) the making by the Borrower of a
prepayment of a Loan, or the conversion thereof, on a day which is not the last
day of the Interest Period with respect thereto, in each case including, but not
limited to, any such loss or expense arising from interest or fees payable by
such Lender to lenders of funds obtained by it in order to maintain its Loans
hereunder. A certificate as to any additional amounts payable pursuant to this
Section submitted by any Lender, through the Administrative Agent, to the
Borrower (which certificate must be delivered to the Administrative Agent within
thirty (30) days following such default, prepayment or conversion) shall be
conclusive in the absence of manifest error. The agreements in this Section
shall survive termination of this Agreement and payment of the Credit Party
Obligations.
55
SECTION 2.17 TAXES.
(a) All payments made by the Borrower hereunder or under any Note will
be, except as provided in Section 2.17(b), made free and clear of, and
without deduction or withholding for, any present or future taxes, levies,
imposts, duties, fees, assessments or other charges of whatever nature now
or hereafter imposed by any Governmental Authority or by any political
subdivision or taxing authority thereof or therein with respect to such
payments (but excluding any tax imposed on or measured by the net income or
profits of a Lender pursuant to the laws of the jurisdiction in which it is
organized or the jurisdiction in which the principal office or applicable
lending office of such Lender is located or any subdivision thereof or
therein) and all interest, penalties or additions to tax with respect
thereto (all such non-excluded taxes, levies, imposts, duties, fees,
assessments or other charges being referred to collectively as "Taxes" and
all such excluded taxes referred to collectively as "Excluded Taxes"). If
any Taxes are so levied or imposed with respect to such payments made by
the Borrower, the Borrower agrees to pay the full amount of such Taxes, and
such additional amounts as may be necessary so that every payment of all
amounts due under this Credit Agreement or under any Note, after
withholding or deduction for or on account of any Taxes, will not be less
than the amount provided for herein or in such Note. The Borrower will
furnish to the Administrative Agent as soon as practicable after the date
the payment of any Taxes is due pursuant to applicable law certified copies
(to the extent reasonably available and required by law) of tax receipts
evidencing such payment by the Borrower or such other evidence of payment
reasonably satisfactory to the Lenders. The Borrower agrees to indemnify
and hold harmless each Lender, and reimburse such Lender upon its written
request (which shall specify in reasonable detail the nature and amount of
such Taxes), for the amount of any Taxes so levied or imposed with respect
to such payments made by the Borrower and paid by such Lender. Nothing
contained in this Section shall require a Lender to make available its tax
returns or provide any information relating to its taxes which it
reasonably deems confidential.
(b) Each Lender that is not a United States person (as such term is
defined in Section 7701(a)(30) of the Code) agrees to deliver to the
Borrower and the Administrative Agent on or prior to the Closing Date, or
in the case of a Lender that is an assignee or transferee of an interest
under this Credit Agreement pursuant to Section 9.6(c) (unless the
respective Lender was already a Lender hereunder immediately prior to such
assignment or transfer), on the date of such assignment or transfer to such
Lender, (i) if the Lender is a "bank" within the meaning of Section
881(c)(3)(A) of the Code, two accurate and complete original signed copies
of Internal Revenue Service Form X-0XXX, X-0XXX or W-8IMY with appropriate
attachments (or successor forms) certifying such Lender's entitlement to a
complete exemption from United States withholding tax with respect to
payments to be made under this Credit Agreement and under any Note, or (ii)
if the Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of
the Code, Internal Revenue Service Form X-0XXX, X-0XXX or W-8IMY with
appropriate attachments as set forth in clause (i) above, or (x) a
certificate in substantially the form of Exhibit 2.17 (any such
certificate, a "Tax Exempt Certificate") and (y) two accurate and complete
original signed copies of Internal
56
Revenue Service Form W-8BEN (or successor form) certifying such Lender's
entitlement to an exemption from United States withholding tax with respect
to payments of interest to be made under this Credit Agreement and under
any Note. Each Lender that is a United States person as that term is
defined in Section 7701(a)(30) of the Code, other than a Lender that may be
treated as an exempt recipient based on the indicators described in
Treasury Regulation Section 1.6049-4(c)(1)(ii), hereby agrees that it
shall, no later than the Closing Date or, in the case of a Lender that is
an assignee or transferee of an interest under this Credit Agreement
pursuant Section 9.6(c), on the date of such assignment or transfer to such
Lender, deliver to the Borrower and the Administrative Agent two accurate,
complete and signed copies of Internal Revenue service Form W-9 or
successor form, certifying that such Lender is not subject to United States
backup withholding tax. In addition, each Lender agrees that it will
deliver updated versions of the foregoing, as applicable, (i) whenever the
previous certification has become inaccurate in any material respect or
(ii) at any time reasonably requested by the Borrower or the Administrative
Agent, together with such other forms as may be required in order to
confirm or establish the entitlement of such Lender to a continued
exemption from or reduction in United States withholding tax with respect
to payments under this Credit Agreement and any Note. Notwithstanding
anything to the contrary contained in Section 2.17(a), but subject to the
immediately succeeding sentence, (x) the Borrower shall be entitled, to the
extent it is required to do so by law, to deduct or withhold Taxes imposed
by the United States (or any political subdivision or taxing authority
thereof or therein) from interest, fees or other amounts payable hereunder
for the account of any Lender to the extent that such Lender has not
provided to the Borrower U.S. Internal Revenue Service Forms that establish
a complete exemption from such deduction or withholding and (y) the
Borrower shall not be obligated pursuant to Section 2.17(a) hereof to
gross-up payments to be made to a Lender in respect of Taxes imposed by the
United States or to indemnify such Lender for any withholding Taxes imposed
by the United States if (I) such Lender has not provided to the Borrower
the Internal Revenue Service Forms required to be provided to the Borrower
pursuant to this Section or (II) in the case of a payment, other than
interest, to a Lender described in clause (ii) above, to the extent that
such Forms do not establish a complete exemption from withholding of such
Taxes. Notwithstanding anything to the contrary contained in the preceding
sentence or elsewhere in this Section, the Borrower agrees to pay
additional amounts and to indemnify each Lender in the manner set forth in
Section 2.17(a) (without regard to the identity of the jurisdiction
requiring the deduction or withholding) in respect of any amounts deducted
or withheld by it as described in the immediately preceding sentence as a
result of any changes after the Closing Date in any applicable law, treaty,
governmental rule, regulation, guideline or order, or in the interpretation
thereof, relating to the deducting or withholding of Taxes.
(c) Each Lender agrees to use reasonable efforts (including reasonable
efforts to change its Domestic Lending Office or LIBOR Lending Office, as
the case may be) to avoid or to minimize any amounts which might otherwise
be payable pursuant to this Section; provided, however, that such efforts
shall not cause the imposition on such Lender of any additional costs or
legal or regulatory burdens deemed by such Lender in its reasonable
discretion to be material.
57
(d) If the Borrower pays any additional amount pursuant to this
Section with respect to a Lender, such Lender shall use reasonable efforts
to obtain a refund of tax or credit against its tax liabilities on account
of such payment; provided that such Lender shall have no obligation to use
such reasonable efforts if either (i) it is in an excess foreign tax credit
position or (ii) it believes in good faith, in its sole discretion, that
claiming a refund or credit would cause adverse tax consequences to it. In
the event that such Lender receives such a refund or credit, such Lender
shall pay to the Borrower an amount that such Lender reasonably determines
is equal to the net tax benefit obtained by such Lender as a result of such
payment by the Borrower. In the event that no refund or credit is obtained
with respect to the Borrower's payments to such Lender pursuant to this,
then such Lender shall upon request provide a certification that such
Lender has not received a refund or credit for such payments. Nothing
contained in this Section shall require a Lender to disclose or detail the
basis of its calculation of the amount of any tax benefit or any other
amount or the basis of its determination referred to in the proviso to the
first sentence of this Section to the Borrower or any other party.
(e) The agreements in this Section shall survive the termination of
this Credit Agreement and the payment of the Notes and all other amounts
payable hereunder.
SECTION 2.18 INDEMNIFICATION; NATURE OF ISSUING LENDER'S DUTIES.
(a) In addition to its other obligations under Section 2.3, the Credit
Parties hereby agree to protect, indemnify, pay and save the Issuing Lender
and each Lender harmless from and against any and all claims, demands,
liabilities, damages, losses, costs, charges and expenses (including
reasonable attorneys' fees) that the Issuing Lender or such Lender may
incur or be subject to as a consequence, direct or indirect, of (i) the
issuance of any Letter of Credit or (ii) the failure of the Issuing Lender
to honor a drawing under a Letter of Credit as a result of any act or
omission, whether rightful or wrongful, of any present or future de jure or
de facto government or Governmental Authority (all such acts or omissions,
herein called "Government Acts").
(b) As between the Credit Parties and the Issuing Lender and each
Lender, the Credit Parties shall assume all risks of the acts, omissions or
misuse of any Letter of Credit by the beneficiary thereof. Neither the
Issuing Lender nor any Lender shall be responsible: (i) for the form,
validity, sufficiency, accuracy, genuineness or legal effect of any
document submitted by any party in connection with the application for and
issuance of any Letter of Credit, even if it should in fact prove to be in
any or all respects invalid, insufficient, inaccurate, fraudulent or
forged; (ii) for the validity or sufficiency of any instrument transferring
or assigning or purporting to transfer or assign any Letter of Credit or
the rights or benefits thereunder or proceeds thereof, in whole or in part,
that may prove to be invalid or ineffective for any reason; (iii) for
failure of the beneficiary of a Letter of Credit to comply fully with
conditions required in order to draw upon a Letter of Credit; (iv) for
errors, omissions, interruptions or delays in transmission or delivery of
any messages, by mail, cable, telegraph, telex or otherwise, whether or not
they be in cipher; (v) for errors in interpretation of technical terms;
(vi) for any loss or delay in the
58
transmission or otherwise of any document required in order to make a
drawing under a Letter of Credit or of the proceeds thereof; and (vii) for
any consequences arising from causes beyond the control of the Issuing
Lender or any Lender, including, without limitation, any Government Acts.
None of the above shall affect, impair, or prevent the vesting of the
Issuing Lender's rights or powers hereunder.
(c) In furtherance and extension and not in limitation of the specific
provisions hereinabove set forth, any action taken or omitted by the
Issuing Lender or any Lender, under or in connection with any Letter of
Credit or the related certificates, if taken or omitted in the absence of
gross negligence or willful misconduct, shall not put such Issuing Lender
or such Lender under any resulting liability to the Credit Parties. It is
the intention of the parties that this Agreement shall be construed and
applied to protect and indemnify the Issuing Lender and each Lender against
any and all risks involved in the issuance of the Letters of Credit, all of
which risks are hereby assumed by the Credit Parties, including, without
limitation, any and all risks of the acts or omissions, whether rightful or
wrongful, of any Government Authority. The Issuing Lender and the Lenders
shall not, in any way, be liable for any failure by the Issuing Lender or
anyone else to pay any drawing under any Letter of Credit as a result of
any Government Acts or any other cause beyond the control of the Issuing
Lender and the Lenders.
(d) Nothing in this Section is intended to limit the Reimbursement
Obligation of the Borrower contained in Section 2.3(d) hereof. The
obligations of the Credit Parties under this Section shall survive the
termination of this Agreement. No act or omissions of any current or prior
beneficiary of a Letter of Credit shall in any way affect or impair the
rights of the Issuing Lender and the Lenders to enforce any right, power or
benefit under this Agreement.
(e) Notwithstanding anything to the contrary contained in this
Section, the Credit Parties shall have no obligation to indemnify the
Issuing Lender or any Lender in respect of any liability incurred by the
Issuing Lender or such Lender arising out of the gross negligence or
willful misconduct of the Issuing Lender (including action not taken by the
Issuing Lender or such Lender), as determined by a court of competent
jurisdiction or pursuant to arbitration.
SECTION 2.19 REPLACEMENT OF LENDERS.
If any Lender requests compensation under Sections 2.14 or 2.17, or if the
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.15,
or if any Lender defaults in its obligation to fund Loans hereunder, then the
Borrower may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in, and
consents required by, Section 9.6), all of its interests, rights and obligations
under this Agreement and the related Credit Documents to an assignee that shall
assume such obligations (which assignee may be another Lender, if a Lender
accepts such assignment).
59
ARTICLE III
REPRESENTATIONS AND WARRANTIES
To induce the Lenders to enter into this Agreement and to make the
Extensions of Credit herein provided for, other than Extensions of Credit made
on the Closing Date, as it relates to Sections 3.6, 3.9, 3.10, 3.15 and 3.24,
the Credit Parties hereby represent and warrant to the Administrative Agent and
to each Lender that:
SECTION 3.1 FINANCIAL CONDITION.
(a) (i) The audited Consolidated financial statements of the Borrower
and its Subsidiaries for the fiscal years ended December 31, 2003, 2004,
and 2005 together with the related Consolidated and consolidating
statements of income or operations, equity and cash flows for the fiscal
years ended on such dates, (ii) the audited Consolidated financial
statements of the Acquired Company and its Subsidiaries for the fiscal
years ended January 31, 2004, 2005, and 2006 together with the related
Consolidated and consolidating statements of income or operations, equity
and cash flows for the fiscal years ended on such dates, (iii) the
unaudited Consolidated financial statements of the Borrower and its
Subsidiaries and the Acquired Company and its Subsidiaries for the
twelve-month period ending on the last day of the most recent fiscal
quarter ended for the Borrower or the Acquired Company, as the case may be,
prior to the Closing Date, together with the related Consolidated and
consolidating statements of income or operations, equity and cash flows for
such twelve-month periods ending on such dates and (iv) a pro forma balance
sheet of the Borrower and its Subsidiaries as of the last day of the most
recent fiscal quarter ended prior to the Closing Date:
(A) were in all material respects prepared in accordance
with GAAP consistently applied throughout the period covered
thereby, except as otherwise expressly noted therein;
(B) fairly present the financial condition of the Borrower
and its Subsidiaries in all material respects, as applicable, as
of the date thereof (subject, in the case of the unaudited
financial statements, to normal year-end adjustments) and results
of operations for the periods covered thereby; and
(C) show all material Indebtedness and other liabilities,
direct or contingent, of the Borrower and its Subsidiaries as of
the date thereof, including liabilities for taxes, material
commitments and contingent obligations.
(b) The five-year projections of the Borrower and its Subsidiaries
delivered to the Lenders on or prior to the Closing Date have been prepared
in good faith based upon reasonable assumptions as of the Closing Date. The
parties hereto acknowledge that all
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such forecasts and projections are based on various facts and assumptions
which the Borrower believes are reasonable, but there can be no assurance
that such facts or assumptions will materialize as anticipated, and the
actual results may vary materially from such forecasts and projections.
SECTION 3.2 NO CHANGE.
Since December 31, 2005 (a) (and, in addition, after delivery of annual
audited financial statements in accordance with Section 5.1(a), from the date of
the most recently delivered annual audited financial statements), there has been
no development or event which has had or could reasonably be expected to have a
Material Adverse Effect and (b) no Internal Control Event has occurred.
SECTION 3.3 CORPORATE EXISTENCE; COMPLIANCE WITH LAW.
Each of the Borrower and the other Credit Parties (a) is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation, organization or formation, (b) is duly qualified to conduct
business and in good standing under the laws of (i) the jurisdiction of its
organization or formation, (ii) the jurisdiction where its chief executive
office is located and (iii) each other jurisdiction where its ownership, lease
or operation of property or the conduct of its business requires such
qualification, except to the extent that the failure to so qualify or be in good
standing in any such other jurisdiction could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect and (c) is
in compliance with all Requirements of Law, organizational documents, government
permits and government licenses except to the extent such non-compliance could
not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. The Borrower and the Credit Parties, taken as a whole, (a) have
the requisite power and authority and the legal right to (i) own and operate all
of their collective material property, (ii) lease their collective material
property and (iii) conduct the business in which they are currently engaged and
(b) have taken all actions necessary to maintain all material rights,
privileges, licenses and franchises necessary or required in the normal conduct
of their business. The jurisdictions in which the Credit Parties are organized
are described on Schedule 3.3 as of the Closing Date or as last updated in
accordance with Section 5.2. The Borrower shall supplement Schedule 3.3 from
time to time, in accordance with Section 5.2, to add Additional Credit Parties.
SECTION 3.4 CORPORATE POWER; AUTHORIZATION; ENFORCEABLE OBLIGATIONS.
Each of the Borrower and the other Credit Parties has full power and
authority and the legal right to make, deliver and perform the Credit Documents
to which it is party and has taken all necessary limited liability company,
partnership or corporate action to authorize the execution, delivery and
performance by it of the Credit Documents to which it is party. Each Credit
Document to which it is a party has been duly executed and delivered on behalf
of each Credit Party. Each Credit Document to which it is a party constitutes a
legal, valid and binding obligation of each Credit Party, enforceable against
such Credit Party in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors' rights
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generally and by general equitable principles (whether enforcement is sought by
proceedings in equity or at law).
SECTION 3.5 NO LEGAL BAR; NO DEFAULT.
The execution, delivery and performance of the Credit Documents, the
borrowings thereunder and the use of the proceeds of the Loans (a) will not
violate in any material respect any Requirement of Law or any Contractual
Obligation of any Credit Party (except those as to which waivers or consents
have been obtained), (b) will not conflict with, result in a breach of or
constitute a default under, in any material respect, the articles of
incorporation, bylaws, articles of organization, operating agreement or other
organization documents of the Credit Parties or any material agreement or other
material instrument to which such Person is a party or by which any of its
properties may be bound or any material approval or material consent from any
Governmental Authority relating to such Person, and (c) will not result in, or
require, the creation or imposition of any Lien on any Credit Party's properties
or revenues pursuant to any Requirement of Law or Contractual Obligation other
than the Liens arising under or contemplated in connection with the Credit
Documents or Permitted Liens, in each instance for clauses (a) through (c),
whether individually or in the aggregate, to the extent that it could reasonably
be expected to materially and adversely affect the Borrower and its
Subsidiaries, taken as a whole, or the Lenders. No Credit Party is in default
under or with respect to any of its Contractual Obligations that are material to
the Borrower and its Subsidiaries, taken as a whole, in any material respect. No
Default or Event of Default has occurred and is continuing.
SECTION 3.6 NO MATERIAL LITIGATION.
No litigation, investigation, claim, criminal prosecution, civil
investigative demand, imposition of criminal or civil fines and penalties, or
any other proceeding of or before any arbitrator or Governmental Authority is
pending or, to the best knowledge of the Credit Parties, threatened by or
against any Credit Party or any of its Subsidiaries or against any of its or
their respective properties or revenues (a) with respect to the Credit Documents
or any Extension of Credit or any of the transactions contemplated hereby, or
(b) which, if adversely determined, could, reasonably be expected to have a
Material Adverse Effect. Set forth on Schedule 3.6 is a list, as of the Closing
Date, of all litigation matters that the Credit Parties deem material.
SECTION 3.7 INVESTMENT COMPANY ACT; ETC.
No Credit Party is an "investment company", or a company "controlled" by an
"investment company", within the meaning of the Investment Company Act of 1940,
as amended. No Credit Party is a subject to regulation under the Federal Power
Act, the Interstate Commerce Act, or any federal or state statute or regulation
limiting its ability to incur the Credit Party Obligations.
SECTION 3.8 MARGIN REGULATIONS.
No part of the proceeds of any Extension of Credit hereunder will be used
directly or indirectly for any purpose that violates, or that would require any
Lender to make any filings in
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accordance with, the provisions of Regulation T, U or X of the Board of
Governors of the Federal Reserve System as now and from time to time hereafter
in effect. The Credit Parties and their Subsidiaries (a) are not engaged,
principally or as one of their important activities, in the business of
extending credit for the purpose of "purchasing" or "carrying" "margin stock"
within the respective meanings of each of such terms under Regulation U and (b)
taken as a group do not own "margin stock" except as identified in the financial
statements referred to in Section 3.1 and the aggregate value of all "margin
stock" owned by the Credit Parties and their Subsidiaries taken as a group does
not exceed 25% of the value of their assets.
SECTION 3.9 ERISA.
Set forth on Schedule 3.9 is a list, as of the Closing Date, of all ERISA
matters that the Credit Parties deem material. Except as could not reasonably be
expected, individually or in the aggregate, to have a Material Adverse Effect:
(a) Neither a Reportable Event nor an "accumulated funding deficiency"
(within the meaning of Section 412 of the Code or Section 302 of ERISA) has
occurred during the five-year period prior to the date on which this
representation is made with respect to any Plan, and each Plan has complied
in all respects with the applicable provisions of ERISA and the Code.
(b) No termination of a Single Employer Plan has occurred during the
five-year period prior to the date on which this representation is made
resulting in any liability that has remained underfunded, and no Lien in
favor of the PBGC or a Plan has arisen, during such five-year period.
(c) The present value of all accrued benefits under each Single
Employer Plan (based on those assumptions used to fund such Plans) did not,
as of the last annual valuation date prior to the date on which this
representation is made or deemed made, exceed the value of the assets of
such Plan allocable to such accrued benefits.
(d) All contributions required to be made with respect to a Plan have
been timely made.
(e) Neither any Credit Party nor any Commonly Controlled Entity is
currently subject to any liability that remains unfunded for a complete or
partial withdrawal from a Multiemployer Plan.
SECTION 3.10 ENVIRONMENTAL MATTERS.
Set forth on Schedule 3.10 is a list, as of the Closing Date, of all
environmental matters that the Credit Parties deem material. Except as could not
reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect:
(a) The facilities and properties owned, leased or operated by the
Credit Parties or any of their Subsidiaries (the "Properties") do not
contain any Materials of
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Environmental Concern in amounts or concentrations which (i) constitute a
violation of, or (ii) could give rise to liability on behalf of any Credit
Party under, any Environmental Law.
(b) The Properties and all operations of the Credit Parties and/or
their Subsidiaries at the Properties are in compliance, and have in the
last five years been in compliance, with all applicable Environmental Laws,
and there is no contamination at, under or about the Properties or
violation of any Environmental Law with respect to the Properties or the
business operated by the Credit Parties or any of their Subsidiaries (the
"Business").
(c) Neither the Credit Parties nor their Subsidiaries have received
any written or actual notice of violation, alleged violation,
non-compliance, liability or potential liability on behalf of any Credit
Party with respect to environmental matters or Environmental Laws regarding
any of the Properties or the Business, nor do the Credit Parties and their
Subsidiaries have knowledge or reason to believe that any such notice will
be received or is being threatened.
(d) Materials of Environmental Concern have not been transported or
disposed of from the Properties in violation of, or in a manner or to a
location that could give rise to liability on behalf of any Credit Party
under any Environmental Law, and no Materials of Environmental Concern have
been generated, treated, stored or disposed of at, on or under any of the
Properties in violation of, or in a manner that could give rise to
liability on behalf of any Credit Party under, any applicable Environmental
Law.
(e) No judicial proceeding or governmental or administrative action is
pending or, to the knowledge of the Credit Parties and their Subsidiaries,
threatened, under any Environmental Law to which any Credit Party or any
Subsidiary is or will be named as a party with respect to the Properties or
the Business, nor are there any consent decrees or other decrees, consent
orders, administrative orders or other orders, or other administrative or
judicial requirements outstanding under any Environmental Law with respect
to the Properties or the Business.
(f) There has been no release or threat of release of Materials of
Environmental Concern at or from the Properties, or arising from or related
to the operations of any Credit Party or any Subsidiary in connection with
the Properties or otherwise in connection with the Business, in violation
of or in amounts or in a manner that could give rise to liability on behalf
of any Credit Party under Environmental Laws.
SECTION 3.11 USE OF PROCEEDS.
The proceeds of the Term Loan A and the Revolving Loans shall be used by
the Borrower solely (a) to finance a portion of the Acquisition, (b) to
refinance certain existing Indebtedness of the Borrower, the Acquired Company
and their respective Subsidiaries, (c) to pay any costs, fees and expenses
associated with this Agreement or the Acquisition, and (d) for working capital,
capital expenditures, Permitted Acquisitions and other general corporate
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purposes of the Credit Parties and their Subsidiaries. The proceeds of the
Interim Term Loan shall be used by the Borrower solely to finance a portion of
the Acquisition.
SECTION 3.12 SUBSIDIARIES; JOINT VENTURES; PARTNERSHIPS.
Set forth on Schedule 3.12 is a complete and accurate list of all
Subsidiaries, joint ventures and partnerships of the Credit Parties as of the
Closing Date. Information on the attached Schedule includes the following: (a)
the number of shares of each class of Capital Stock or other equity interests
outstanding owned by the Borrower and each Domestic Subsidiary; (b) the number
of outstanding shares of each class of Capital Stock of the Subsidiary and the
number of such shares owned by the Borrower and each Domestic Subsidiary; (c)
the number and effect, if exercised, of all outstanding options, warrants,
rights of conversion or purchase and similar rights of each Subsidiary and (d)
whether such Subsidiary is an Excluded Subsidiary. The outstanding Capital Stock
and other equity interests of the Borrower and each Material Domestic Subsidiary
the Capital Stock of which is pledged as Collateral hereunder is validly issued,
fully paid and non-assessable and is owned free and clear of all Liens (other
than those arising under or contemplated in connection with the Credit
Documents). There are no outstanding subscriptions, options, warrants, calls,
rights or other agreements or commitments (other than stock options granted to
employees or directors and directors' qualifying shares) of any nature relating
to any Capital Stock issued by any Material Domestic Subsidiary, except as
contemplated in connection with the Credit Documents.
SECTION 3.13 OWNERSHIP.
Each of the Credit Parties and its Subsidiaries is the owner of all of its
respective material personal and material real property and has good and
marketable title to or a valid leasehold interest in, all of its respective
material real property, which, together with assets leased or licensed by the
Credit Parties and their Subsidiaries, represents all assets in the aggregate
material to the conduct of the business of the Credit Parties and their
Subsidiaries, taken as a whole, and (after giving effect to the Transactions)
none of such material assets is subject to any Lien other than Permitted Liens.
Except as could not reasonably be expected, individually or in the aggregate, to
have a Material Adverse Effect, each Credit Party and its Subsidiaries enjoys
peaceful and undisturbed possession under all of its leases and all such leases
are valid and subsisting and in full force and effect.
SECTION 3.14 INDEBTEDNESS.
Except as otherwise permitted under Section 6.1, the Credit Parties and
their Subsidiaries have no Indebtedness.
SECTION 3.15 TAXES.
Each of the Credit Parties and its Subsidiaries has filed, or caused to be
filed, all income tax returns and all other material tax returns (federal,
state, local and foreign) required to be filed and paid (a) all amounts of taxes
shown thereon to be due (including interest and penalties) and (b) all other
taxes, fees, assessments and other governmental charges (including mortgage
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recording taxes, documentary stamp taxes and intangibles taxes) owing by it,
except for such filings, taxes, fees, assessments and other governmental charges
(i) that are not yet delinquent, (ii) that are being contested in good faith and
by proper proceedings, and against which adequate reserves are being maintained
in accordance with GAAP or (iii) the failure to pay or file could not reasonably
be expected to result in a Material Adverse Effect. Except as set forth on
Schedule 3.15, none of the Credit Parties and their Subsidiaries is aware as of
the Closing Date of any proposed or actual tax assessments against it or any of
its Subsidiaries that would be material to the Borrower and its Subsidiaries,
taken as a whole.
SECTION 3.16 INTELLECTUAL PROPERTY RIGHTS.
The Credit Parties and their Subsidiaries, taken as a whole, own, or have
the legal right to use, all Material Intellectual Property necessary to conduct
their business as currently conducted. Set forth on Schedule 3.16 is a list of
all Material Intellectual Property owned by each of the Credit Parties and its
Subsidiaries or that each of the Credit Parties or any of its Subsidiaries has
the right to use as of the Closing Date or as last updated in accordance with
Section 5.2. Except insofar as the failure of the following representations and
warranties to be true and correct could not reasonably be expected, individually
or in the aggregate, to have a Material Adverse Effect, (a) at least one of the
Credit Parties or a Subsidiary thereof has the right to use the Material
Intellectual Property disclosed in Schedule 3.16 hereto, (b) all registrations
with and applications to Governmental Authorities in respect of such Material
Intellectual Property are valid and in full force and effect and are not subject
to the payment of any taxes or maintenance fees or the taking of any interest
therein and (c) there are no restrictions on the direct or indirect transfer of
any Contractual Obligation, or any interest therein, held by any of the Credit
Parties in respect of such Material Intellectual Property which has not been
obtained. Except insofar as the failure of the following representations and
warranties to be true and correct could not reasonably be expected, individually
or in the aggregate, to have a Material Adverse Effect, (a) none of the Credit
Parties is in default (or with the giving of notice or lapse of time or both,
would be in default) under any license to use such Material Intellectual
Property; (b) no claim has been asserted and is pending by any Person
challenging or questioning the use of any such Material Intellectual Property or
the validity or effectiveness of any such Material Intellectual Property, nor do
the Credit Parties or any of their Subsidiaries know of any such claim which
could reasonably be expected to have a Material Adverse Effect; and (c) to the
knowledge of the Credit Parties or any of their Subsidiaries, the use of such
Material Intellectual Property by any of the Credit Parties or any of its
Subsidiaries does not infringe on the rights of any Person. Except insofar as
the failure of the following representations and warranties to be true and
correct could not reasonably be expected, individually or in the aggregate, to
have a Material Adverse Effect, the Credit Parties have recorded or deposited
with and paid to the United States Copyright Office, the Register of Copyrights,
the Copyrights Royalty Tribunal or other Governmental Authority, with respect to
any Copyright constituting Material Intellectual Property, all notices,
statements of account, royalty fees and other documents and instruments required
under the terms and conditions of any Contractual Obligation of the Credit
Parties and/or under Title 17 of the United States Code and the rules and
regulations issued thereunder (collectively, the "Copyright Act") with respect
to any Copyright constituting Material Intellectual Property, and are not liable
to any Person for copyright infringement under the Copyright Act or any other
law, rule, regulation, contract or license as a result of their business
operations. Schedule 3.16 shall
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be updated from time to time, in accordance with Section 5.2, by the Borrower to
include new Material Intellectual Property.
SECTION 3.17 SOLVENCY.
After giving effect to the Transactions, the fair saleable value of the
assets of the Borrower and its Subsidiaries, taken as a whole, measured on a
going concern basis, exceeds all probable liabilities of the Borrower and its
Subsidiaries, taken as a whole, including those to be incurred pursuant to this
Agreement. The Borrower and its Subsidiaries, taken as a whole, (a) do not have
unreasonably small capital in relation to the business in which they propose to
be engaged or (b) have not incurred, or believe that they will incur after
giving effect to the Transactions, debts beyond their ability to pay such debts
as they become due. In executing the Credit Documents and consummating the
Transactions, none of the Credit Parties intends to hinder, delay or defraud
either present or future creditors or other Persons to which one or more of the
Credit Parties is or will become indebted.
SECTION 3.18 INVESTMENTS.
All Investments of each of the Credit Parties and its Subsidiaries are
Permitted Investments.
SECTION 3.19 LOCATION OF COLLATERAL.
Set forth on Schedule 3.19(a) is a list of all locations of the Credit
Parties and their Subsidiaries, as of the Closing Date required to be disclosed
in any filing with the SEC, including street address, county and state where
located. Set forth on Schedule 3.19(b) is the state of incorporation or
organization, the chief executive office, organization and tax identification
numbers and the principal place of business of each of the Credit Parties as of
the Closing Date.
SECTION 3.20 NO BURDENSOME RESTRICTIONS.
None of the Credit Parties and their Subsidiaries is a party to any
agreement or instrument or subject to any other obligation or any charter or
corporate restriction or any provision of any applicable law, rule or regulation
which has non-standard terms that could reasonably be expected to be exercised
and, if so exercised, could reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect.
SECTION 3.21 BROKERS' FEES.
Except as set forth on Schedule 3.21, none of the Credit Parties and their
Subsidiaries has any obligation to any Person in respect of any finder's,
broker's, investment banking or other similar fee in connection with any of the
transactions contemplated under the Credit Documents other than the closing and
other fees payable pursuant to this Agreement and as set forth in the Fee
Letter.
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SECTION 3.22 LABOR MATTERS.
There are no collective bargaining agreements or Multiemployer Plans
covering the employees of the Credit Parties or any of their Subsidiaries as of
the Closing Date, other than as set forth in Schedule 3.22 hereto, and none of
the Credit Parties and their Subsidiaries (a) has suffered any strikes,
walkouts, work stoppages or other material labor difficulty within the last two
(2) years, other than as set forth in Schedule 3.22 hereto, or (b) has knowledge
of any potential or pending strike, walkout or work stoppage. Other than as set
forth on Schedule 3.22, no material unfair labor practice complaint is pending
against any Credit Party or any of its Subsidiaries.
SECTION 3.23 ACCURACY AND COMPLETENESS OF INFORMATION.
All written information heretofore, contemporaneously or hereafter
furnished by or on behalf of any Credit Party or any of its Subsidiaries to the
Administrative Agent, the Arranger or any Lender for purposes of or in
connection with this Agreement or any other Credit Document (other than the
representations and warranties set forth in the definitive documentation for the
Acquisition), or any transaction contemplated hereby or thereby, is or will be
true and accurate in all material respects and not incomplete by omitting to
state any material fact necessary to make such information not misleading. There
is no fact now known to any Credit Party or any of its Subsidiaries which,
individually or in the aggregate, has, or could reasonably be expected to have,
a Material Adverse Effect, which fact has not been set forth herein, in the
financial statements of the Borrower and its Subsidiaries furnished to the
Administrative Agent and the Lenders, or in any certificate, opinion or other
written statement made or furnished by any Credit Party to the Administrative
Agent and the Lenders. To the knowledge of the Credit Parties, all
representations and warranties set forth in the definitive documentation for the
Acquisition are true and correct in all material respects.
SECTION 3.24 MATERIAL CONTRACTS.
Schedule 3.24 sets forth a complete and accurate list of all Material
Contracts of the Credit Parties and their Subsidiaries in effect as of the
Closing Date or as last updated in accordance with Section 5.2. Each Material
Contract is, and after giving effect to the Transactions will be, in full force
and effect in accordance with the terms thereof. To the extent requested by the
Administrative Agent, the Credit Parties and their Subsidiaries have delivered
to, or have allowed access to, the Administrative Agent a true and complete copy
of each such Material Contract, except to the extent the disclosure of such
Material Contract is then prohibited by any Requirement of Law, the directive of
any applicable Governmental Authority or any Contractual Obligation binding on
any Credit Party as of the Closing Date; provided that the Borrower may redact
or summarize certain portions of such Material Contracts containing
non-financial trade secrets or non-financial proprietary information with the
consent of the Administrative Agent (such consent not to be unreasonably
withheld). Schedule 3.24 shall be updated from time to time, in accordance with
Section 5.2, by the Borrower to include new Material Contracts.
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SECTION 3.25 INSURANCE.
The liability, casualty, property and business interruption insurance of
the Credit Parties and their Subsidiaries as of the Closing Date or as last
updated in accordance with Section 5.2 is outlined as to carrier, policy number,
expiration date, type and amount on Schedule 3.25 and such insurance coverage
complies with the requirements set forth in Section 5.5(b). Schedule 3.25 shall
be updated from time to time, in accordance with Section 5.2, by the Borrower to
include additional insurance coverage.
SECTION 3.26 SECURITY DOCUMENTS.
The Security Documents create valid security interests in, and Liens on,
the Collateral purported to be covered thereby. Except as set forth in the
Security Documents, such security interests and Liens are currently (or will be,
upon (a) the filing of appropriate financing statements with the Secretary of
State of the state of incorporation or organization for each Credit Party, and
the filing of appropriate assignments or notices with the United States Patent
and Trademark Office and the United States Copyright Office, in each case in
favor of the Administrative Agent, on behalf of the Lenders, and (b) the
Administrative Agent obtaining Control (as defined in the Security Agreement) or
possession over those items of Collateral in which a security interest is
perfected through Control or possession) perfected security interests and Liens,
prior to all other Liens other than Permitted Liens.
SECTION 3.27 CLASSIFICATION OF SENIOR INDEBTEDNESS.
The Credit Party Obligations constitute "Senior Indebtedness", "Designated
Senior Indebtedness" or any similar designation under and as defined in any
agreement governing any Subordinated Debt and the subordination provisions set
forth in each such agreement are legally valid and enforceable against the
parties thereto.
SECTION 3.28 ANTI-TERRORISM LAWS.
Neither any Credit Party nor any of its Subsidiaries is an "enemy" or an
"ally of the enemy" within the meaning of Section 2 of the Trading with the
Enemy Act of the United States of America (50 U.S.C. App. Sections 1 et seq.),
as amended. Neither any Credit Party nor any or its Subsidiaries is in violation
of (a) the Trading with the Enemy Act, as amended, (b) any of the foreign assets
control regulations of the United States Treasury Department (31 CFR, Subtitle
B, Chapter V, as amended) or any enabling legislation or executive order
relating thereto or (c) the Patriot Act. None of the Credit Parties (i) is a
blocked person described in section 1 of the Anti-Terrorism Order or (ii) to the
best of its knowledge, engages in any dealings or transactions, or is otherwise
associated, with any such blocked person, in each instance in a manner that is
not permitted pursuant to applicable law.
SECTION 3.29 COMPLIANCE WITH OFAC RULES AND REGULATIONS.
None of the Credit Parties or their Subsidiaries or their respective
Affiliates is a Sanctioned Person. None of the Credit Parties, except as may be
permitted pursuant to
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applicable law, (a) has more than 15% of its assets in Sanctioned Countries, or
(b) derives more than 15% of its operating income from investments in, or
transactions with Sanctioned Persons or Sanctioned Countries. Except as may be
permitted by applicable law, no part of the proceeds of any Extension of Credit
hereunder will be used directly or indirectly to fund any operations in, finance
any investments or activities in or make any payments to, a Sanctioned Person or
a Sanctioned Country.
SECTION 3.30 COMPLIANCE WITH FCPA.
Except as could not reasonably be expected, either individually or in the
aggregate, to have a Material Adverse Effect, each of the Credit Parties and
their Subsidiaries is in compliance with the Foreign Corrupt Practices Act, 15
U.S.C. Sections 78dd-1, et seq., and any foreign counterpart thereto.
SECTION 3.31 CONSENT; GOVERNMENTAL AUTHORIZATIONS.
No approval, consent or authorization in respect of, any Governmental
Authority or any other Person is required in connection with acceptance of
Extensions of Credit by the Borrower or the making of the Guaranty hereunder or
with the execution, delivery or performance of any Credit Document by the Credit
Parties (other than those which have been obtained) or with the validity or
enforceability of any Credit Document against the Credit Parties (except such
filings as are necessary in connection with the perfection of the Liens created
by such Credit Documents).
ARTICLE IV
CONDITIONS PRECEDENT
SECTION 4.1 CONDITIONS TO CLOSING DATE.
This Agreement shall become effective upon, and the obligation of each
Lender to make the Term Loan and the initial Revolving Loans on the Closing Date
is subject to, the satisfaction of the following conditions precedent:
(a) Execution of Credit Agreement and Credit Documents. The
Administrative Agent shall have received (i) counterparts of this
Agreement, executed by a duly authorized officer of each party hereto, (ii)
for the account of each Revolving Lender requesting a promissory note, a
Revolving Note, (iii) for the account of each Term Loan Lender requesting a
promissory note for the Term Loan A, a Term Loan A Note, (iv) for the
account of the Interim Term Loan Lender requesting a promissory note for
the Interim Term Loan, an Interim Term Loan Note, (v) for the account of
the Swingline Lender requesting a promissory note, the Swingline Note, (vi)
counterparts of the Security Agreement, and the Pledge Agreement, in each
case conforming to the requirements of this Agreement and executed by duly
authorized officers of the Credit Parties or other Person, as applicable,
and (vii) counterparts of any other Credit Document, executed by the duly
authorized officers of the parties thereto.
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(b) Authority Documents. The Administrative Agent shall have received
the following:
(i) Articles of Incorporation/Charter Documents. Copies of the
articles of incorporation or other charter documents, as applicable,
of each Credit Party certified (A) by an officer of such Credit Party
(pursuant to an officer's certificate in substantially the form of
Exhibit 4.1(b) attached hereto) as of the Closing Date to be true and
correct and in force and effect as of such date, and (B) subject to
Section 5.15(c), to be true and complete as of a recent date by the
appropriate Governmental Authority of the state of its incorporation
or organization, as applicable.
(ii) Resolutions. Copies of resolutions of the board of directors
or comparable managing body of each Credit Party approving and
adopting the Credit Documents, the transactions contemplated therein
and authorizing execution and delivery thereof, certified by an
officer of such Credit Party (pursuant to an officer's certificate in
substantially the form of Exhibit 4.1(b) attached hereto) as of the
Closing Date to be true and correct and in force and effect as of such
date.
(iii) Bylaws/Operating Agreement. A copy of the bylaws or
comparable operating agreement of each Credit Party certified by an
officer of such Credit Party (pursuant to an officer's certificate in
substantially the form of Exhibit 4.1(b) attached hereto) as of the
Closing Date to be true and correct and in force and effect as of such
date.
(iv) Good Standing. Subject to Section 5.15(c), copies of
certificates of good standing, existence or its equivalent with
respect to each Credit Party certified as of a recent date by the
appropriate Governmental Authorities of (A) the state of incorporation
or organization and (B) each other state in which the failure to so
qualify and be in good standing could reasonably be expected to have a
Material Adverse Effect.
(v) Incumbency. An incumbency certificate of each Credit Party
certified by an officer (pursuant to an officer's certificate in
substantially the form of Exhibit 4.1(b) attached hereto) to be true
and correct as of the Closing Date.
(c) Legal Opinion of Counsel. The Administrative Agent shall have
received an opinion or opinions (including, if reasonably requested by the
Administrative Agent, local counsel opinions) of counsel for the Credit
Parties (including the Acquired Company), dated the Closing Date and
addressed to the Administrative Agent and the Lenders, in form and
substance acceptable to the Administrative Agent (which shall include,
without limitation, opinions with respect to the due organization and valid
existence of each Credit Party (including the Acquired Company), opinions
as to perfection of the Liens granted to the Administrative Agent pursuant
to the Security
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Documents and opinions as to the non-contravention of the Credit Parties'
(including the Acquired Company's) organizational documents and Material
Contracts). The Administrative Agent shall have received evidence that the
Administrative Agent and the Lenders have been permitted to rely on each
opinion delivered by the Borrower and the seller in connection with the
Acquisition, in form and substance reasonably acceptable to the
Administrative Agent.
(d) Personal Property Collateral. Subject to the terms of Section
5.15, the Administrative Agent shall have received, in form and substance
satisfactory to the Administrative Agent:
(i) (A) searches of Uniform Commercial Code filings in the
jurisdiction of the chief executive office, the state of organization,
and the state of incorporation, of each Credit Party and each
jurisdiction where any Collateral is located or where a filing would
need to be made in order to perfect the Lenders' security interest in
the Collateral, copies of the financing statements on file in such
jurisdictions and evidence that no Liens exist other than Permitted
Liens and (B) tax lien, judgment and pending litigation searches;
(ii) searches of ownership of Intellectual Property in the
appropriate governmental offices and such patent/trademark/copyright
filings as requested by the Administrative Agent in order to perfect
the Administrative Agent's security interest in the Intellectual
Property;
(iii) completed UCC financing statements for each appropriate
jurisdiction as is necessary, in the Administrative Agent's sole
discretion, to perfect the Lenders' security interest in the
Collateral;
(iv) the stock or membership certificates, if any, evidencing the
Capital Stock pledged to the Administrative Agent pursuant to the
Pledge Agreement, together with duly executed in blank undated stock
or transfer powers;
(v) duly executed consents as are necessary, in the
Administrative Agent's sole discretion, to perfect the Lenders'
security interest in the Collateral;
(vi) in the case of any personal property Collateral located at
premises leased by a Credit Party and set forth on Schedule 3.19(a)
such estoppel letters, consents and waivers from the landlords on such
real property to the extent (A) requested by the Administrative Agent
and (B) the Borrower is able to secure such letters, consents and
waivers after using commercially reasonable efforts (such letters,
consents and waivers shall be in form and substance satisfactory to
the Administrative Agent, it being acknowledged and agreed that any
landlord waiver in the form of Exhibit 4.1(d) is satisfactory to the
Administrative Agent);
(vii) all instruments and chattel paper in the possession of any
of the Credit Parties, together with allonges or assignments as may be
necessary or
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appropriate to perfect the Administrative Agent's and the Lenders'
security interest in the Collateral; and
(viii) such documentation as may be required by the
Administrative Agent to be executed by the Credit Parties to comply
with the Federal Assignment of Claims Act.
(e) Liability, Casualty, Property and Business Interruption Insurance.
The Administrative Agent shall have received certificates and endorsements
of insurance evidencing liability, casualty, property and business
interruption insurance meeting the requirements set forth herein or in the
Security Documents. The Administrative Agent shall be named as lender loss
payee, as its interest may appear and/or additional insured with respect to
any such insurance providing liability coverage or coverage in respect of
any Collateral, and the Borrower will use its commercially reasonable
efforts to have each provider of any such insurance agree, by endorsement
upon the policy or policies issued by it or by independent instruments
furnished to the Administrative Agent, that it will give the Administrative
Agent thirty (30) days prior written notice before any such policy or
policies shall be altered or cancelled.
(f) Litigation. There shall not exist any pending or ongoing, action,
suit, investigation, litigation or proceeding in any court or before any
other Governmental Authority (i) affecting or relating to this Agreement or
the other Credit Documents, that has not been settled, dismissed, vacated,
discharged or terminated prior to the Closing Date or (ii) that purports to
affect any Credit Party or any of its Subsidiaries, or any transaction
contemplated by the Credit Documents, which action, suit, investigation,
litigation or proceeding could reasonably be expected to have a Material
Adverse Effect, that has not been settled, dismissed, vacated, discharged
or terminated prior to the Closing Date.
(g) Solvency Certificate. The Administrative Agent shall have received
an officer's certificate prepared by the chief financial officer of the
Borrower as to the financial condition, solvency and related matters of the
Credit Parties and their Subsidiaries, after giving effect to the initial
borrowings under the Credit Documents, in substantially the form of Exhibit
4.1(g) hereto.
(h) Account Designation Letter. The Administrative Agent shall have
received the executed Account Designation Letter in the form of Exhibit
1.1(a) hereto.
(i) Notice of Borrowing. The Administrative Agent shall have received
a Notice of Borrowing with respect to the Revolving Loans.
(j) Consents. The Administrative Agent shall have received evidence
that all boards of directors (including, without limitation, the board of
directors of the Acquired Company), governmental, shareholder and material
third party consents (including, without limitation, Xxxx-Xxxxx-Xxxxxx
clearance) and approvals necessary in connection with the Transactions have
been obtained and all applicable waiting periods have expired
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without any action being taken by any authority that could restrain,
prevent or impose any material adverse conditions on such transactions or
that could seek or threaten any of the foregoing.
(k) Compliance with Laws. The financings and other Transactions
contemplated hereby shall be in compliance with all applicable laws and
regulations (including all applicable securities and banking laws, rules
and regulations).
(l) Bankruptcy. There shall be no bankruptcy or insolvency proceedings
pending with respect to any Credit Party or any Subsidiary thereof.
(m) Existing Indebtedness of the Credit Parties. All of the existing
Indebtedness for borrowed money of the Credit Parties and their
Subsidiaries (including the Acquired Company and other than Indebtedness
permitted to exist pursuant to Section 6.1) shall be repaid in full and all
security interests related thereto shall be terminated on or prior to the
Closing Date.
(n) Financial Statements. The Administrative Agent and the Lenders
shall have received copies of the financial statements referred to in
Section 3.1, each in form and substance satisfactory to it.
(o) No Material Adverse Change. Since December 31, 2005, there shall
have been no material adverse change in the business, operations or
financial condition of the Acquired Company and its Subsidiaries, taken as
a whole.
(p) Financial Condition Certificate. The Administrative Agent shall
have received a certificate or certificates executed by a Responsible
Officer of the Borrower as of the Closing Date, substantially in the form
of Exhibit 4.1(p) stating that (i) there does not exist any pending or
ongoing, action, suit, investigation, litigation or proceeding in any court
or before any other Governmental Authority (A) affecting this Agreement or
the other Credit Documents, that has not been settled, dismissed, vacated,
discharged or terminated prior to the Closing Date or (B) that purports to
affect any Credit Party or any of its Subsidiaries, or any transaction
contemplated by the Credit Documents, which action, suit, investigation,
litigation or proceeding could reasonably be expected to have a Material
Adverse Effect, that has not been settled, dismissed, vacated, discharged
or terminated prior to the Closing Date, (ii) immediately after giving
effect to this Agreement, the other Credit Documents, and all the
Transactions contemplated to occur on such date, (A) no Default or Event of
Default exists, (B) all representations and warranties contained herein and
in the other Credit Documents (other than representations and warranties
made pursuant to Sections 3.6, 3.9, 3.10, 3.15 and 3.24 hereof) are true
and correct, and (C) the Credit Parties are in pro forma compliance with
each of the initial financial covenants set forth in Section 5.9 (as
evidenced through detailed calculations of such financial covenants on a
schedule to such certificate) as of the most recent fiscal quarter ended
prior to the Closing Date, (iii) immediately after giving effect to the
Transactions, the Total Leverage Ratio of the Borrower and its Subsidiaries
as of the last day of the fiscal quarter ending prior to the Closing Date,
shall
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not exceed 4.50 to 1.0, and (iv) each of the other conditions precedent in
Section 4.1 have been satisfied.
(q) Material Contracts. To the extent requested by the Administrative
Agent, the Administrative Agent shall have received, or shall have access
to, a true and complete copy of any Material Contract, together with all
exhibits and schedules, except to the extent the disclosure of such
Material Contract is then prohibited by any Requirement of Law, the
directive of any applicable Governmental Authority or any Contractual
obligation binding on any Credit Party as of the Closing Date; provided
that the Borrower may redact certain portions of such Material Contract
containing non-financial trade secrets or non-financial proprietary
information with the consent for the Administrative Agent (such consent not
to be unreasonably withheld).
(r) Patriot Act Certificate. The Administrative Agent shall have
received a certificate satisfactory thereto, substantially in the form of
Exhibit 4.1(r), for benefit of itself and the Lenders, provided by the
Borrower that sets forth information required by the Patriot Act including,
without limitation, the identity of the Credit Parties, the name and
address of the Credit Parties and other information that will allow the
Administrative Agent or any Lender, as applicable, to identify the Credit
Parties in accordance with the Patriot Act.
(s) Acquisition Documents. The Acquisition shall have been consummated
in accordance with the terms of the Acquisition Documents (without waiver
of any conditions precedent to the obligations of any party thereto) and
there shall not have been any material modification, amendment, supplement
or waiver to the Acquisition Documents without the written consent or
waiver by the Administrative Agent.
(t) Total Leverage Ratio. Immediately after giving effect to the
Transactions, the Total Leverage Ratio of the Borrower and its Subsidiaries
as of the last day of the fiscal quarter ending prior to the Closing Date,
shall not exceed 4.50 to 1.0.
(u) Fees. The Administrative Agent and the Lenders shall have received
all fees and expenses, if any, owing pursuant to the Fee Letter and Section
2.5.
(v) Additional Matters. All other documents and legal matters in
connection with the transactions contemplated by this Agreement shall be
reasonably satisfactory in form and substance to the Administrative Agent
and its counsel.
SECTION 4.2 CONDITIONS TO ALL EXTENSIONS OF CREDIT.
The obligation of each Lender to make any Extension of Credit hereunder is
subject to the satisfaction of the following conditions precedent on the date of
making such Extension of Credit:
(a) Representations and Warranties. The representations and warranties
made by the Credit Parties herein, in the Security Documents or which are
contained in any
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certificate furnished at any time under or in connection herewith shall be
(i) with respect to representations and warranties that contain a
materiality qualification, true and correct and (ii) with respect to
representations and warranties that do not contain a materiality
qualification, true and correct in all material respects, on and as of the
date of such Extension of Credit as if made on and as of such date except
for any representation or warranty made as of an earlier date, which
representation and warranty shall remain true and correct, in accordance
with (i) and (ii) above, as of such earlier date.
(b) No Default or Event of Default. No Default or Event of Default
shall have occurred and be continuing on such date or after giving effect
to the Extension of Credit to be made on such date unless such Default or
Event of Default shall have been waived in accordance with this Agreement.
(c) Compliance with Commitments. Immediately after giving effect to
the making of any such Extension of Credit (and the application of the
proceeds thereof), (i) the sum of the aggregate principal amount of
outstanding Revolving Loans plus outstanding Swingline Loans plus
outstanding LOC Obligations shall not exceed the Revolving Committed Amount
then in effect, (ii) the outstanding LOC Obligations shall not exceed the
LOC Committed Amount, and (iii) the outstanding Swingline Loans shall not
exceed the Swingline Committed Amount.
(d) Additional Conditions to Revolving Loans. If a Revolving Loan is
requested, all conditions set forth in Section 2.1 shall have been
satisfied.
(e) Additional Conditions to Letters of Credit. If the issuance of a
Letter of Credit is requested, all conditions set fort in Section 2.3 shall
have been satisfied.
(f) Additional Conditions to Swingline Loans. If a Swingline Loan is
requested, all conditions set forth in Section 2.4 shall have been
satisfied.
Each request for an Extension of Credit and each acceptance by the Borrower
of any such Extension of Credit shall be deemed to constitute representations
and warranties by the Credit Parties as of the date of such Extension of Credit
that the conditions set forth above in paragraphs (a) through (f), as
applicable, have been satisfied.
ARTICLE V
AFFIRMATIVE COVENANTS
Each of the Credit Parties hereby covenants and agrees that on the Closing
Date, and thereafter for so long as this Agreement is in effect and until the
Commitments have terminated, no Note remains outstanding and unpaid and the
Credit Party Obligations and all other amounts owing to the Administrative Agent
or any Lender hereunder are paid in full, such Credit Party shall, and shall
cause each of their Subsidiaries (other than in the case of Sections 5.1 or 5.2
hereof), to:
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SECTION 5.1 FINANCIAL STATEMENTS.
Furnish to the Administrative Agent and each of the Lenders:
(a) Annual Financial Statements. As soon as available and in any event
no later than the earlier of (i) to the extent applicable, the date the
Borrower is required by the SEC to deliver its Form 10-K for any fiscal
year of the Borrower and (ii) ninety (90) days after the end of each fiscal
year of the Borrower, a copy of the Consolidated balance sheet of the
Borrower and its Consolidated Subsidiaries as at the end of such fiscal
year and the related Consolidated statements of income and retained
earnings and of cash flows of the Borrower and its Consolidated
Subsidiaries for such year, which shall be audited by a firm of independent
certified public accountants of nationally recognized standing reasonably
acceptable to the Required Lenders, setting forth in each case in
comparative form the figures for the previous year, reported on without a
"going concern" or like qualification or exception, or qualification
indicating that the scope of the audit was inadequate to permit such
independent certified public accountants to certify such financial
statements without such qualification;
(b) Quarterly Financial Statements. As soon as available and in any
event no later than the earlier of (i) to the extent applicable, the date
the Borrower is required by the SEC to deliver its Form 10-Q for any fiscal
quarter of the Borrower and (ii) forty-five (45) days after the end of each
fiscal quarter of the Borrower, a copy of the Consolidated balance sheet of
the Borrower and its Consolidated Subsidiaries as at the end of such period
and related Consolidated statements of income and retained earnings and of
cash flows for the Borrower and its Consolidated Subsidiaries for such
quarterly period and for the portion of the fiscal year ending with such
period; and
(c) Annual Operating Budget and Cash Flow. As soon as available, but
in any event within forty-five (45) days after the end of each fiscal year,
a copy of the detailed annual operating budget or plan including cash flow
projections of the Borrower and its Subsidiaries for the next four fiscal
quarter period prepared on a annual basis, in form and detail reasonably
acceptable to the Administrative Agent and the Lenders, together with a
summary of the material assumptions made in the preparation of such annual
budget or plan;
all such financial statements to be complete and correct in all material
respects (subject, in the case of interim statements, to normal recurring
year-end audit adjustments) and to be prepared in reasonable detail and, in the
case of the annual and quarterly financial statements provided in accordance
with subsections (a) and (b) above, in accordance with GAAP applied consistently
throughout the periods reflected therein and further accompanied by a
description of, and an estimation of the effect on the financial statements on
account of, a change, if any, in the application of accounting principles as
provided in Section 1.3.
Notwithstanding the foregoing, (a) financial statements and reports
required to be delivered pursuant to the foregoing provisions of this Section
and Section 5.2(e) may be
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delivered electronically and if so, shall be deemed to have been delivered on
the date on which the Administrative Agent receives such reports from the
Borrower through electronic mail and (b) financial statements and reports
required to be delivered pursuant to subsections (a) and (b) hereof and Section
5.2(e) of this Section shall be deemed delivered upon the posting of such
financial statements on XXXXX or the Borrower's website together with, if posted
on the Borrower's website only, the delivery of notice to the Administrative
Agent of such posting; provided that, upon the Administrative Agent's request,
the Borrower shall thereafter provide electronic or paper copies of any
documents required hereby to the Administrative Agent.
SECTION 5.2 CERTIFICATES; OTHER INFORMATION.
Furnish to the Administrative Agent and each of the Lenders:
(a) concurrently with the delivery of the financial statements
referred to in Section 5.1(a) above, an unqualified opinion of the
registered independent certified public accountants of the Borrower
accompanying such audited financial statements without a "going concern" or
like qualification or exception, or qualification indicating that the scope
of the audit was inadequate to permit such registered independent certified
public accountants to certify such financial statements without such
qualification;
(b) concurrently with the delivery of the financial statements
referred to in Sections 5.1(a) and 5.1(b) above, a certificate of a
Responsible Officer substantially in the form of Exhibit 5.2(b) stating
that (i) (A) such financial statements present fairly in all material
respects the financial position of the Borrower and its Subsidiaries for
the periods indicated in conformity with GAAP applied on a consistent
basis, (B) each of the Credit Parties during such period observed or
performed all of its covenants and other agreements in all material
respects, and satisfied every material condition, contained in this
Agreement to be observed, performed or satisfied by it, and (C) such
Responsible Officer has obtained no knowledge of any Default or Event of
Default except as specified in such certificate and such certificate shall
include the calculations in reasonable detail required to indicate
compliance with Section 5.9 as of the last day of such period;
(c) concurrently with or prior to the delivery of the financial
statements referred to in Sections 5.1(a) and 5.1(b) above, (i) an updated
copy of Schedule 3.3 if the Borrower or any of its Subsidiaries has formed
or acquired a new Subsidiary since the Closing Date or since such Schedule
was last updated, as applicable, and (ii) an updated copy of Schedule 3.16
if the Borrower or any of its Subsidiaries has registered, applied for
registration of, acquired or otherwise obtained ownership of any new
Material Intellectual Property since the Closing Date or since Schedule
3.16 was last updated, as applicable;
(d) concurrently with or prior to the delivery of the financial
statements referred to in Sections 5.1(a) above, an updated copy of
Schedule 3.25 if the Borrower or any of its Subsidiaries has altered or
acquired any insurance policies since the Closing Date or since Schedule
3.25 was last updated;
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(e) promptly upon their becoming available, (i) copies of all reports
(other than those otherwise provided pursuant to Section 5.1 and those
which are of a promotional nature) and other financial information which
the Borrower sends to its shareholders, and (ii) copies of all reports and
all registration statements and prospectuses, if any, which the Borrower
may make to, or file with, the SEC (or any successor or analogous
Governmental Authority) or any securities exchange or other private
regulatory authority;
(f) within ninety (90) days after the end of each fiscal year of the
Borrower, a certificate containing information including the calculation of
Excess Cash Flow, the amount of all acquisitions, all dividends, Asset
Dispositions, Debt Issuances, and Equity Issuances that were made during
the prior fiscal year and amounts received in connection with any Recovery
Event during the prior fiscal year;
(g) not less than five (5) Business Days prior to the consummation of
any Permitted Acquisition with a purchase price in excess of $150,000,000,
a certificate substantially in the form of Exhibit 5.2(g) and reasonably
satisfactory to the Administrative Agent, executed by a Responsible Officer
of the Borrower (i) certifying that such Permitted Acquisition complies
with the requirements of this Agreement, (ii) providing a description of
the material terms of such acquisition (including a description of the
business and the form of consideration), (iii) providing the audited
financial statements (or, if unavailable, management-prepared financial
statements) of the Target for its two most recent fiscal years and for any
fiscal quarters ended within the fiscal year to date and (iv) providing a
description of any pro forma adjustments contemplated as add-backs to
Consolidated EBITDA for headcount reduction, facility closures and
transaction expenses, in each case in form and substance reasonably
satisfactory to the Administrative Agent;
(h) upon the Administrative Agent's request, an updated copy of
Schedule 3.24 and a copy of (or access to) any Material Contract, except to
the extent the disclosure of such Material Contract is then prohibited by
any Requirement of Law, the directive of any applicable Governmental
Authority or any Contractual obligation binding on any Credit Party as of
the Closing Date; provided that the Borrower may redact certain portions of
such Material Contract containing non-financial trade secrets or
non-financial proprietary information with the consent for the
Administrative Agent (such consent not to be unreasonably withheld); and
(i) promptly, such additional financial and other information as the
Administrative Agent, on behalf of any Lender, may from time to time
reasonably request.
SECTION 5.3 PAYMENT OF TAXES AND OTHER OBLIGATIONS.
Pay, discharge or otherwise satisfy at or before maturity or before they
become delinquent, as the case may be, subject, where applicable, to specified
grace periods, (a) its material taxes (Federal, state, local and any other
taxes) and (b) its other material obligations and
79
liabilities of whatever nature in accordance with industry practice and (c) any
material additional costs that are imposed as a result of any failure to so pay,
discharge or otherwise satisfy such taxes, obligations and liabilities, except
when the amount or validity of any such taxes, obligations and liabilities is
currently being contested in good faith by appropriate proceedings and reserves,
if applicable, in conformity with GAAP with respect thereto have been provided
on the books of the Credit Parties.
SECTION 5.4 CONDUCT OF BUSINESS AND MAINTENANCE OF EXISTENCE.
(a) Except as permitted pursuant to Section 6.4 and Section 6.8,
continue to engage in business of the same general type as now conducted by
it or its Subsidiaries on the Closing Date and preserve, renew and keep in
full force and effect its corporate or other formative existence and good
standing and take all reasonable action to maintain all rights, privileges
and franchises necessary or desirable in the normal conduct of its
business;
(b) comply in all material respects with all Contractual Obligations
that are material to the Borrower and its Subsidiaries, taken as a whole;
and
(c) comply with all Requirements of Law applicable to it except to the
extent that failure to comply therewith could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.
SECTION 5.5 MAINTENANCE OF PROPERTY; INSURANCE.
(a) Keep all material property useful and necessary in its business in
good working order and condition (ordinary wear and tear and obsolescence
excepted).
(b) Maintain with financially sound and reputable insurance companies
liability, casualty, property and business interruption insurance
(including, without limitation, insurance with respect to its tangible
Collateral) in at least such amounts and against at least such risks as are
usually insured against in the same general area by companies engaged in
the same or a similar business; and furnish to the Administrative Agent,
upon the request of the Administrative Agent, full information as to the
insurance carried. The Administrative Agent shall be named as loss payee or
mortgagee, as its interest may appear, and/or additional insured with
respect to any such casualty, property and liability insurance, as
applicable, and each provider of any such insurance shall agree, by
endorsement upon the policy or policies issued by it or by independent
instruments furnished to the Administrative Agent, that it will give the
Administrative Agent thirty (30) days prior written notice before any such
policy or policies shall be altered or canceled, and such policies shall
provide that no act or default of the Credit Parties or any of their
Subsidiaries or any other Person shall affect the rights of the
Administrative Agent or the Lenders under such policy or policies.
(c) In case of any material loss, damage to or destruction of the
Collateral of any Credit Party or any part thereof, such Credit Party shall
promptly give written notice thereof
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to the Administrative Agent generally describing the nature and extent of
such damage or destruction. In case of any such material loss, damage to or
destruction of a material portion of the Collateral of the Credit Parties,
taken as a whole, if required by the Administrative Agent or the Required
Lenders, such Credit Party (whether or not the insurance proceeds, if any,
received on account of such damage or destruction shall be sufficient for
that purpose), at such Credit Party's cost and expense, will promptly
repair or replace the Collateral of such Credit Party so lost, damaged or
destroyed.
SECTION 5.6 INSPECTION OF PROPERTY; BOOKS AND RECORDS; DISCUSSIONS.
Keep proper books of records and account in which full, true and correct
entries in conformity with GAAP and all Requirements of Law shall be made of all
dealings and transactions in relation to its businesses and activities; and
permit, during regular business hours and upon reasonable notice by the
Administrative Agent or any Lender, the Administrative Agent or any Lender to
visit and inspect any of its properties and examine and make abstracts and
copies from any of its books and records at any reasonable time and as often as
may reasonably be desired, and to discuss the business, operations, properties
and financial and other condition of the Borrower and its Subsidiaries with
officers and employees of the Borrower and its Subsidiaries and with its
independent certified public accountants.
SECTION 5.7 NOTICES.
Give notice in writing to the Administrative Agent (which shall promptly
transmit such notice to each Lender) of:
(a) promptly, but in any event within two (2) Business Days after any
Credit Party knows or has reason to know thereof, the occurrence of any
Default or Event of Default;
(b) promptly, any default or event of default under any Contractual
Obligation of any Credit Party or any of their Subsidiaries which,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect or involve a monetary claim in excess of
$5,000,000;
(c) promptly, any litigation, or any investigation or proceeding known
to any Credit Party (i) affecting any Credit Party or any of their
Subsidiaries which, if adversely determined, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect
or involve an uninsured monetary claim in excess of $5,000,000, (ii)
affecting or with respect to this Agreement, any other Credit Document or
any security interest or Lien created thereunder or (iii) involving an
environmental claim or potential liability under Environmental Laws which
could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect;
(d) any labor controversy that has resulted in, or threatens to result
in, a strike or other work action against any Credit Party which could
reasonably be expected to have a Material Adverse Effect;
81
(e) any attachment, judgment, lien, levy or order exceeding $5,000,000
that may be assessed against or threatened against any Credit Party other
than Permitted Liens;
(f) as soon as possible and in any event within thirty (30) days after
any Credit Party knows or has reason to know thereof: (i) the occurrence or
expected occurrence of any Reportable Event with respect to any Plan, a
failure to make any required contribution to a Plan, the creation of any
Lien in favor of the PBGC (other than a Permitted Lien) or a Plan or any
withdrawal from, or the termination, Reorganization or Insolvency of, any
Multiemployer Plan or (ii) the institution of proceedings or the taking of
any other action by the PBGC or any Credit Party, any Commonly Controlled
Entity or any Multiemployer Plan, with respect to the withdrawal from, or
the terminating, Reorganization or Insolvency of, any Plan, in each case to
the extent material to the Borrower and its Subsidiaries, taken as a whole;
(g) promptly after becoming aware of the occurrence of any Internal
Control Event;
(h) as soon as possible and in any event within ten (10) days after
the creation of a Material Domestic Subsidiary, notice of the creation of
such Material Domestic Subsidiary;
(i) promptly, any notice of any violation received by any Credit Party
from any Governmental Authority including, without limitation, any notice
of violation of Environmental Laws; and
(j) promptly, any other development or event which could reasonably be
expected to have a Material Adverse Effect.
Each notice pursuant to this Section shall be accompanied by a statement of a
Responsible Officer setting forth details of the occurrence referred to therein
and stating what material action the Credit Parties propose to take with respect
thereto, if any. In the case of any notice of a Default or Event of Default, the
Borrower shall specify that such notice is a Default or Event of Default notice
on the face thereof.
SECTION 5.8 ENVIRONMENTAL LAWS.
(a) Except as could not reasonably be expected, either individually or
in the aggregate, to have a Material Adverse Effect, comply with, and
ensure compliance in all material respects by all tenants and subtenants,
if any, with, all applicable Environmental Laws and obtain and comply with
and maintain, and ensure that all tenants and subtenants obtain and comply
with and maintain, any and all licenses, approvals, notifications,
registrations or permits required by applicable Environmental Laws;
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(b) Except as could not reasonably be expected, either individually or
in the aggregate, to have a Material Adverse Effect, conduct and complete
all investigations, studies, sampling and testing, and all remedial,
removal and other actions required under Environmental Laws and promptly
comply with all lawful orders and directives of all Governmental
Authorities regarding Environmental Laws except to the extent that the same
are being contested in good faith by appropriate proceedings; and
(c) Defend, indemnify and hold harmless the Administrative Agent and
the Lenders, and their respective employees, agents, officers and directors
and affiliates, from and against any and all claims, demands, penalties,
fines, liabilities, settlements, damages, costs and expenses of whatever
kind or nature known or unknown, contingent or otherwise, arising out of,
or in any way relating to the violation of, noncompliance with or liability
under, any Environmental Law applicable to the operations of the Credit
Parties or any of their Subsidiaries or the Properties, or any orders,
requirements or demands of Governmental Authorities related thereto,
including, without limitation, reasonable attorney's and consultant's fees,
investigation and laboratory fees, response costs, court costs and
litigation expenses, except to the extent that any of the foregoing arise
out of the gross negligence or willful misconduct of the party seeking
indemnification therefor. The agreements in this paragraph shall survive
repayment of the Credit Party Obligations and all other amounts payable
hereunder and termination of the Commitments and the Credit Documents.
SECTION 5.9 FINANCIAL COVENANTS.
Comply with the following financial covenants:
(a) Total Leverage Ratio. The Total Leverage Ratio, for the twelve
months ending as of each fiscal quarter end, shall be less than or equal to
4.50 to 1.0 at all times
(b) Senior Leverage Ratio. The Senior Leverage Ratio, for the twelve
months ending as of each fiscal quarter end, shall be less than or equal to
3.25 to 1.0 at all times.
(c) Interest Coverage Ratio. The Interest Coverage Ratio, for the
twelve months ending as of each fiscal quarter end, shall be greater than
or equal to 3.0 to 1.0 at all times.
Notwithstanding the above, the parties hereto acknowledge and agree that,
for purposes of all calculations made in determining compliance for any
applicable period with the financial covenants set forth in this Section, (i)
after consummation of any Permitted Acquisition, Indebtedness of a Target which
is retired in connection with a Permitted Acquisition shall be excluded from
such calculations and deemed to have been retired as of the first day of such
applicable period and (ii) after any Asset Disposition permitted by Section
6.4(a)(x), (A) income statement items, cash flow statement items and other
balance sheet items (whether positive or negative) attributable to the property
or assets disposed of shall be excluded in such calculations to the extent
relating to such applicable period and (B) Indebtedness that is repaid with the
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proceeds of such Asset Disposition shall be excluded from such calculations and
deemed to have been repaid as of the first day of such applicable period.
SECTION 5.10 ADDITIONAL GUARANTORS.
The Credit Parties will cause each of their Material Domestic Subsidiaries
(other than the Excluded Subsidiaries), whether newly formed, after acquired or
otherwise existing to promptly (and in any event within thirty (30) days after
such Material Domestic Subsidiary is formed or acquired (or such longer period
of time as agreed to by the Administrative Agent in its reasonable discretion))
become a Guarantor hereunder by way of execution of a Joinder Agreement. In
connection therewith, the Credit Parties shall give prompt notice to the
Administrative Agent upon creating a Material Domestic Subsidiary, or acquiring
the Capital Stock of any other Person. The Credit Party Obligations shall be
secured by, among other things, a first priority perfected security interest in
the Collateral of such new Guarantor and a pledge of 100% of the Capital Stock
of such new Guarantor and its material Domestic Subsidiaries (other than
Excluded Subsidiaries) and 65% (or such higher percentage that would not result
in material adverse tax consequences for such new Guarantor) of the voting
Capital Stock and 100% of the non-voting Capital Stock of its first-tier
Material Foreign Subsidiaries. In connection with the foregoing, the Credit
Parties shall deliver to the Administrative Agent, with respect to each new
Guarantor to the extent applicable, substantially the same documentation
required pursuant to Sections 4.1(b)-(f) and 5.12 and such other documents or
agreements as the Administrative Agent may reasonably request.
SECTION 5.11 COMPLIANCE WITH LAW.
Comply with all laws, rules, regulations and orders (including
Environmental Laws), and all applicable restrictions imposed by all Governmental
Authorities, applicable to it and its Property if noncompliance with any such
law, rule, regulation, order or restriction could reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect.
SECTION 5.12 PLEDGED ASSETS.
(a) Each Credit Party will cause 100% of the Capital Stock in each of
its direct or indirect Material Domestic Subsidiaries (other than Excluded
Subsidiaries and unless such Domestic Subsidiary is owned by a Foreign
Subsidiary) and 65% (to the extent the pledge of a greater percentage would
be unlawful or would cause any materially adverse tax consequences to the
Borrower or any Guarantor) of the voting Capital Stock and 100% of the
non-voting Capital Stock of its first-tier Material Foreign Subsidiaries
(other than Excluded Subsidiaries), in each case to the extent owned by
such Credit Party, to be subject at all times to a first priority,
perfected Lien in favor of the Administrative Agent pursuant to the terms
and conditions of the Security Documents or such other security documents
as the Administrative Agent shall reasonably request.
(b) Subject to the terms of subsection (c) below, each Credit Party
will cause and all tangible and intangible personal property now owned or
hereafter acquired to be subject at all times to a first priority,
perfected Lien (subject in each case to Permitted
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Liens) in favor of the Administrative Agent pursuant to the terms and
conditions of the Security Documents or such other security documents as
the Administrative Agent shall reasonably request. Each Credit Party shall,
and shall cause each of its Subsidiaries to, adhere to the covenants set
forth in the Security Documents.
(c) Each Credit Party shall timely and fully pay and perform its
obligations under all leases and other agreements with respect to each
leased location or public warehouse where any Collateral is or may be
located.
SECTION 5.13 FEDERAL ASSIGNMENT OF CLAIMS ACT.
The Borrower will execute all documents necessary to comply with the
Federal Assignment of Claims Act and comparable state law with respect to the
accounts arising from (a) any Material Government Contract entered into on or
before the Closing Date and any Material Government Contract entered into after
the Closing Date to the extent reasonably required by the Administrative Agent,
such documents to be held in escrow by the Administrative Agent in accordance
with the terms of Section 5(a) of the Security Agreement.
SECTION 5.14 LANDLORD WAIVERS.
In the case of any personal property Collateral located at premises leased
by a Credit Party and which premises would be required to be disclosed in any
filing with the SEC, the Credit Parties will provide the Administrative Agent
with an estoppel letter, consent and waiver from the landlord with regard to
such premises to the extent (a) requested by the Administrative Agent and (b)
the Borrower is able to secure such letter, consent and waiver after using
commercially reasonable efforts (such letter, consent and waiver to be in form
and substance satisfactory to the Administrative Agent, it being acknowledged
and agreed that any landlord waiver in the form of Exhibit 4.1(d) is
satisfactory to the Administrative Agent).
SECTION 5.15 POST-CLOSING REQUIREMENTS; FURTHER ASSURANCES.
(a) Within ninety (90) days after the Closing Date (or such extended
period of time as agreed to by the Administrative Agent), the
Administrative Agent shall have received evidence that all chain-of-title
issues with respect to the Material Intellectual Property of the Credit
Parties have been resolved to the satisfaction of the Administrative Agent
and all third party security interests with respect to the Material
Intellectual Property of the Credit Parties have been released of record
with the United States Patent and Trademark Office and the United States
Copyright Office; provided that any Indebtedness associated with such
security interests shall have been paid in full and terminated on or prior
to the Closing Date.
(b) Within thirty (30) days after the Closing Date (or such extended
period of time as agreed to by the Administrative Agent), the
Administrative Agent shall have received all stock or membership
certificates, if any, evidencing the Capital Stock of the Material Domestic
Subsidiaries and Material Foreign Subsidiaries pledged to the
Administrative Agent pursuant to the Pledge Agreement that are not
delivered on or prior
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to the Closing Date, together with duly executed in blank undated stock or
transfer powers.
(c) Within sixty (60) days after the Closing Date (or such extended
period of time as agreed to by the Administrative Agent), the
Administrative Agent shall have received copies of (i) (A) the articles of
incorporation or other charter documents, as applicable, of each Credit
Party organized or incorporated in Pennsylvania and California and (B) the
articles of incorporation of Simula, Inc., in each case certified to be
true and complete as of a recent date by the appropriate Governmental
Authority of the state of its incorporation or organization, as applicable
and (ii) to the extent not previously delivered on or prior to the Closing
Date, certificates of good standing, existence or its equivalent with
respect to each Credit Party certified as of a recent date by the
appropriate Governmental Authorities of the state of incorporation or
organization.
(d) Upon the reasonable request of the Administrative Agent, promptly
perform or cause to be performed any and all acts and execute or cause to
be executed any and all documents for filing under the provisions of the
Uniform Commercial Code or any other Requirement of Law which are necessary
or advisable to maintain in favor of the Administrative Agent, for the
benefit of the Secured Parties, Liens on the Collateral that are duly
perfected in accordance with the requirements of, or the obligations of the
Credit Parties under, the Credit Documents and all applicable Requirements
of Law.
ARTICLE VI
NEGATIVE COVENANTS
The Credit Parties hereby covenant and agree that on the Closing Date, and
thereafter for so long as this Agreement is in effect and until the Commitments
have terminated, no Note remains outstanding and unpaid and the Credit Party
Obligations and all other amounts owing to the Administrative Agent or any
Lender hereunder are paid in full, that:
SECTION 6.1 INDEBTEDNESS.
The Credit Parties will not, nor will they permit any Subsidiary to,
contract, create, incur, assume or permit to exist any Indebtedness, except:
(a) Indebtedness arising or existing under this Agreement and the
other Credit Documents;
(b) Indebtedness of the Credit Parties and their Subsidiaries existing
as of the Closing Date as referenced in the fiscal year ended 2005
financial statements referenced in Section 3.1 (and set out more
specifically in Schedule 6.1(b)) hereto and renewals, refinancings or
extensions thereof in a principal amount not in excess of that outstanding
as of the date of such renewal, refinancing or extension;
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(c) Indebtedness of the Credit Parties and their Subsidiaries incurred
after the Closing Date consisting of Capital Leases or Indebtedness
incurred to provide all or a portion of the purchase price or cost of
construction of an asset; provided that (i) such Indebtedness when incurred
shall not exceed the purchase price or cost of construction of such asset;
(ii) no such Indebtedness shall be renewed, refinanced or extended for a
principal amount in excess of the principal balance outstanding thereon at
the time of such renewal, refinancing or extension; and (iii) the total
amount of all such Indebtedness shall not exceed $50,000,000 at any time
outstanding;
(d) Unsecured intercompany Indebtedness (i) among the Credit Parties,
(ii) among Subsidiaries that are not Credit Parties and (iii) to the extent
such Indebtedness constitutes a Permitted Investment, among Credit Parties
and direct and indirect Subsidiaries of the Borrower; provided that any
such Indebtedness shall be, to the extent requested by the Administrative
Agent, evidenced by a promissory note which shall be pledged to the
Administrative Agent as Collateral for the Credit Party Obligations so long
as such promissory note would not cause any adverse tax consequences to the
Borrower or any of its Subsidiaries (it being acknowledged and agreed that
any unsecured intercompany Indebtedness allowed pursuant to this clause (d)
is subordinated to the prior payment in cash in full of the Credit Party
Obligations);
(e) Indebtedness and obligations owing under Secured Hedging
Agreements and other Hedging Agreements entered into in order to manage
existing or anticipated interest rate, exchange rate or commodity price
risks and not for speculative purposes;
(f) Guaranty Obligations in respect of Indebtedness of a Credit Party
to the extent such Indebtedness is permitted to exist or be incurred
pursuant to this Section;
(g) the Senior Subordinated Indebtedness;
(h) the Senior Unsecured Notes;
(i) Indebtedness issued for the purpose of refinancing the Senior
Subordinated Notes on terms substantially similar to the Senior
Subordinated Notes and otherwise reasonably satisfactory to the
Administrative Agent;
(j) Indebtedness of Foreign Subsidiaries which does not to exceed
$40,000,000 in the aggregate;
(k) Indebtedness (other than intercompany Indebtedness) consisting of
Permitted Investments;
(l) so long as there exists no Default or Event of Default both
immediately before and immediately after giving effect to any such
transaction, Indebtedness of a Person which becomes a Subsidiary after the
date hereof or Indebtedness of a Person that is assumed by the Borrower or
any Subsidiary in connection with a Permitted
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Acquisition; provided that (i) such Indebtedness existed at the time such
Person became a Subsidiary or such Permitted Acquisition was consummated,
as the case may be, and, in either case, was not created in anticipation
thereof and (ii) such Indebtedness (to the extent secured) shall not exceed
$25,000,000 at any time outstanding;
(m) other subordinated Indebtedness of the Credit Parties (A) which is
on terms substantially similar to the Senior Subordinated Notes and the
Senior Subordinated Convertible Notes and (B) which matures on or after the
date which is ninety (91) days following the Maturity Date;
(n) Indebtedness consisting of earnout obligations or deferred
purchase price obligations incurred as part of the consideration for a
Permitted Acquisition;
(o) Indebtedness consisting of sale leasebacks permitted pursuant to
Section 6.12;
(p) other unsecured Indebtedness of the Credit Parties so long as such
unsecured Indebtedness matures after the Maturity Date and is incurred on
terms no more restrictive than those set forth in this Agreement; and
(q) other Indebtedness (other than intercompany Indebtedness) of the
Credit Parties and their Subsidiaries in an aggregate amount not to exceed
$10,000,000.
SECTION 6.2 LIENS.
The Credit Parties will not, nor will they permit any Subsidiary to,
contract, create, incur, assume or permit to exist any Lien with respect to any
of their respective property or assets of any kind (whether real or personal,
tangible or intangible), whether now owned or hereafter acquired, except for
Permitted Liens. Notwithstanding the foregoing, if a Credit Party shall xxxxx x
Xxxx on any of its assets in violation of this Section, then it shall be deemed
to have simultaneously granted an equal and ratable Lien on any such assets in
favor of the Administrative Agent for the ratable benefit of the Lenders and the
Hedging Agreement Providers, to the extent such Lien has not already been
granted to the Administrative Agent.
SECTION 6.3 NATURE OF BUSINESS.
The Credit Parties will not, nor will they permit any Subsidiary to, alter
the character of their business in any material respect from that conducted by
the Borrower or its Subsidiaries as of the Closing Date and any business
reasonably related, ancillary or complimentary thereto.
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SECTION 6.4 CONSOLIDATION, MERGER, SALE OR PURCHASE OF ASSETS, ETC.
The Credit Parties will not, nor will they permit any Subsidiary to,
(a) dissolve, liquidate or wind up its affairs, or sell, transfer,
lease or otherwise dispose of its property or assets or agree to do so at a
future time, except the following, without duplication, shall be expressly
permitted:
(i) (A) the sale, transfer, lease or other disposition of
inventory and materials in the ordinary course of business and (B) the
conversion of cash into Cash Equivalents and Cash Equivalents into
cash;
(ii) Recovery Events;
(iii) the sale, lease, transfer or other disposition of
machinery, parts and equipment no longer used or useful in the conduct
of the business of the Credit Parties or any of their Subsidiaries;
(iv) the sale, lease or transfer of property or assets (at fair
value) between the Borrower and any Guarantor;
(v) the sale, lease or transfer of property or assets permitted
pursuant to Section 6.12;
(vi) the sale, lease or transfer of property or assets from a
Subsidiary which is not a Credit Party to another Subsidiary which is
not a Credit Party;
(vii) the sale, lease or transfer of property or assets from
Subsidiary which is not a Credit Party to any Credit Party;
(viii) so long as the Credit Parties are in compliance on a Pro
Forma Basis with the financial covenants set forth in Section 5.9
hereof, a one-time dividend of a subsidiary, division or line of
business whose (A) revenues do not exceed $100,000,000, and (B)
business is unrelated to the Credit Parties' primary business;
(ix) the sale, lease or transfer of property or assets from a
Credit Party other than the Borrower to another Credit Party; and
(x) the sale, lease or transfer of property or assets not to
exceed 10% of Total Consolidated Assets as reported in the audited
financial statements of the Borrower most recently delivered to the
Administrative Agent pursuant to Section 5.1 per sale or series of
related sales;
provided that (A) with respect to clauses (i)(A), (ii), (iii) and (vii)
above, if the Total Leverage Ratio, on a Pro Forma Basis, is greater than
or equal to 3.5 to 1.0, at least 75%
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of the consideration received therefor by the Credit Parties or any such
Subsidiary shall be in the form of cash or Cash Equivalents, (B) after
giving effect to any Asset Disposition pursuant to clause (vii) above, the
Credit Parties shall be in compliance on a Pro Forma Basis with the
financial covenants set forth in Section 5.9 hereof, recalculated for the
most recently ended month for which information is available, and (C) with
respect to clause (vii) above, no Default or Event of Default shall exist
or shall result therefrom; provided, further, that with respect to sales of
assets permitted hereunder only, the Administrative Agent shall be
entitled, without the consent of the Required Lenders, to release its Liens
relating to the particular assets sold; or
(b) except as otherwise permitted by this Agreement, including,
without limitation Section 6.8, (i) purchase, lease or otherwise acquire
(in a single transaction or a series of related transactions) the property
or assets of any Person (other than a Credit Party), other than (A)
Permitted Acquisitions and (B) except as otherwise limited or prohibited
herein, purchases or other acquisitions of inventory, materials, property
and equipment in the ordinary course of business, or (ii) enter into any
transaction of merger or consolidation, except for (A) Investments or
acquisitions permitted pursuant to Section 6.5, (B) the merger or
consolidation of a Credit Party (or Subsidiary that is not a Credit Party)
with and into another Credit Party; provided that if the Borrower is a
party thereto, the Borrower will be the surviving corporation and (C) the
merger or consolidation of a Subsidiary which is not a Credit Party with
and into another Subsidiary which is not a Credit Party.
SECTION 6.5 ADVANCES, INVESTMENTS AND LOANS.
The Credit Parties will not, nor will they permit any Subsidiary to, make
any Investment except for Permitted Investments.
SECTION 6.6 TRANSACTIONS WITH AFFILIATES.
Other than Investments made pursuant to clauses (d) or (e) of the
definition of Permitted Investments, the Credit Parties will not, nor will they
permit any Subsidiary to, enter into any transaction or series of transactions,
whether or not in the ordinary course of business, with any officer, director,
shareholder or Affiliate other than on terms and conditions substantially as
favorable as would be obtainable in a comparable arm's-length transaction with a
Person other than an officer, director, shareholder or Affiliate.
SECTION 6.7 OWNERSHIP OF SUBSIDIARIES; RESTRICTIONS.
The Credit Parties will not sell, transfer, pledge or otherwise dispose of
any Capital Stock or other equity interests in any of their Subsidiaries, nor
will they permit any of their Subsidiaries to issue, sell, transfer, pledge or
otherwise dispose of any of their Capital Stock or other equity interests,
except in a transaction permitted by Section 6.4 or Section 6.8.
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SECTION 6.8 CORPORATE CHANGES; MATERIAL CONTRACTS.
No Credit Party will, nor will it permit any of its Subsidiaries to, (a)
change its fiscal year, (b) amend, modify or change its articles of
incorporation, certificate of designation (or corporate charter or other similar
organizational document) operating agreement or bylaws (or other similar
document) in any respect materially adverse to the interests of the Lenders
without the prior written consent of the Required Lenders, (c) change its state
of incorporation, organization or formation or have more than one state of
incorporation, organization or formation without promptly, but in any case
within thirty (30) days, notifying the Administrative Agent thereof or (d)
materially change its accounting method (except in accordance with GAAP) in any
manner materially adverse to the interests of the Lenders without the prior
written consent of the Required Lenders.
SECTION 6.9 LIMITATION ON RESTRICTED ACTIONS.
The Credit Parties will not, nor will they 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 Person to
(a) pay dividends or make any other distributions to any Credit Party on its
Capital Stock or with respect to any other interest or participation in, or
measured by, its profits, (b) pay any Indebtedness or other obligation owed to
any Credit Party, (c) make loans or advances to any Credit Party, (d) sell,
lease or transfer any of its properties or assets to any Credit Party, or (e)
act as a Guarantor and pledge its assets pursuant to the Credit Documents or any
renewals, refinancings, exchanges, refundings or extension thereof, except (in
respect of any of the matters referred to in clauses (a)-(d) above) for such
encumbrances or restrictions existing under or by reason of (i) this Agreement
and the other Credit Documents, (ii) applicable law, (iii) any document or
instrument governing Indebtedness incurred pursuant to Section 6.1(c); provided
that any such restriction contained therein relates only to the asset or assets
constructed or acquired in connection therewith, or (iv) any Permitted Lien or
any document or instrument governing any Permitted Lien; provided that any such
restriction contained therein relates only to the asset or assets subject to
such Permitted Lien.
SECTION 6.10 RESTRICTED PAYMENTS.
The Credit Parties will not, nor will they permit any Subsidiary to,
directly or indirectly, declare, order, make or set apart any sum for or pay any
Restricted Payment, except (a) to make dividends payable solely in the same
class of Capital Stock of such Person, (b) to make dividends or other
distributions payable to (i) the Borrower or any other Credit Party or (ii) a
Subsidiary which is not a Credit Party but which is the parent company of such
Person, (directly or indirectly through its Subsidiaries), (c) to make a
dividend pursuant to Section 6.4(a)(viii), (d) to make other Restricted Payments
(other than Restricted Payments made pursuant to the Senior Subordinated
Convertible Notes), so long as (i) no Default or Event of Default exists or
would exist on a Pro Forma Basis after giving effect to such Restricted Payment
and (ii) the Total Leverage Ratio and the Senior Leverage Ratio each shall be at
least .25x below the applicable covenant levels then in effect on a Pro Forma
Basis after giving effect to such Restricted Payment, and (e) to pay any net
share settlement cost due under the Senior Subordinated Convertible Notes to the
extent required by the mandatory conversion provisions of the indenture
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therefor as in effect on the Closing Date; provided that no Revolving Loan
borrowings under Section 2.1 of this Agreement may be used to make such payment
unless (i) no Default or Event of Default exists or would exist on a Pro Forma
Basis after giving effect to such payment, (ii) the Total Leverage Ratio and the
Senior Leverage Ratio each shall be at least .25x below the applicable covenant
levels then in effect on a Pro Forma Basis after giving effect to such payment
and (iii) there is at least $50,000,000 of availability under the Revolving
Committed Amount after giving effect to such payment.
SECTION 6.11 AMENDMENT OF SUBORDINATED DEBT.
The Credit Parties will not, nor will they permit any Subsidiary to,
without the prior written consent of the Required Lenders, amend, modify, waive
or extend or permit the amendment, modification, waiver or extension of any term
of any document governing or relating to any Subordinated Debt in a manner that
is materially adverse to the interests of the Lenders.
SECTION 6.12 SALE LEASEBACKS.
The Credit Parties will not, nor will they permit any Subsidiary to,
directly or indirectly, become or remain liable as lessee or as guarantor or
other surety with respect to any lease, whether an Operating lease or a Capital
Lease, of any property (whether real, personal or mixed), whether now owned or
hereafter acquired, (a) which any Credit Party or any Subsidiary has sold or
transferred or is to sell or transfer to a Person which is not a Credit Party or
a Subsidiary or (b) which any Credit Party or any Subsidiary intends to use for
substantially the same purpose as any other property which has been sold or is
to be sold or transferred by a Credit Party or a Subsidiary to another Person
which is not a Credit Party or a Subsidiary in connection with such lease,
except for such transactions that do not exceed $30,000,000 in the aggregate
during the term of this Agreement.
SECTION 6.13 NO FURTHER NEGATIVE PLEDGES.
The Credit Parties will not, nor will they permit any Subsidiary to, enter
into, assume or become subject to any agreement prohibiting or otherwise
restricting the creation or assumption of any Lien upon any of their properties
or assets, whether now owned or hereafter acquired, or requiring the grant of
any security for such obligation if security is given for some other obligation,
except (a) pursuant to this Agreement and the other Credit Documents, (b)
pursuant to any document or instrument; provided that any such restriction
contained therein relates only to the asset or assets constructed or acquired in
connection therewith or otherwise the subject matter thereof; (c) in connection
with any Permitted Lien or any document or instrument governing any Permitted
Lien; provided that any such restriction contained therein relates only to the
asset or assets subject to such Permitted Lien and (d) customary non-assignment
or non-pledge provisions in Government Contracts, joint venture agreements,
Intellectual Property licenses and other agreements that customarily have such
provisions; provided that any such restriction contained therein relates only to
such contract, agreement, or license (and assets required for performance
thereunder) and does not extend to any other properties or assets.
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SECTION 6.14 ACCOUNT CONTROL AGREEMENTS; ADDITIONAL BANK ACCOUNTS.
Beginning forty-five (45) days following the Closing Date, the Credit
Parties will not open, maintain or otherwise have any checking, savings,
securities or other accounts at any bank or other financial institution, or any
other account where money is or may be deposited or maintained with any Person,
other than (a) demand deposit accounts and securities accounts that are subject
to Account Control Agreements, (b) other demand deposit accounts established
solely as payroll and other zero balance accounts and (c) other deposit and
securities accounts, so long as at any time the balance in any such account does
not exceed $5,000,000 and the aggregate balance in all such accounts does not
exceed $15,000,000.
ARTICLE VII
EVENTS OF DEFAULT
SECTION 7.1 EVENTS OF DEFAULT.
An Event of Default shall exist upon the occurrence of any of the following
specified events (each an "Event of Default"):
(a) Payment. (i) The Borrower shall fail to pay any principal on any
Loan or Note when due (whether at maturity, by reason of acceleration or
otherwise) in accordance with the terms hereof or thereof; or (ii) the
Borrower shall fail to reimburse the Issuing Lender for any LOC Obligations
when due (whether at maturity, by reason of acceleration or otherwise) in
accordance with the terms hereof; or (iii) the Borrower shall fail to pay
any interest on any Loan or any fee or other amount payable hereunder when
due (whether at maturity, by reason of acceleration or otherwise) in
accordance with the terms hereof and such failure shall continue unremedied
for three (3) days; or (iv) or any Guarantor shall fail to pay on the
Guaranty in respect of any of the foregoing or in respect of any other
Guaranty Obligations hereunder (after giving effect to the grace period in
clause (iii)); or
(b) Misrepresentation. Any representation or warranty made or deemed
made herein, in the Security Documents or in any of the other Credit
Documents or which is contained in any certificate, document or financial
or other statement furnished at any time under or in connection with this
Agreement shall prove to have been incorrect, false or misleading on or as
of the date made or deemed made; or
(c) Covenant Default. (i) Any Credit Party shall fail to perform,
comply with or observe any term, covenant or agreement applicable to it
contained in Sections 5.1, 5.2, 5.7, 5.9 or Article VI hereof (other than
Section 6.14); (ii) any Credit Party shall fail to perform, comply with or
observe any term, covenant or agreement applicable to it contained in
Sections 5.4, 5.5(b), 5.11, 5.13 or 6.14 and such breach or failure to
comply is not cured within ten (10) days of its occurrence or (iii) any
Credit Party shall fail to comply with any other covenant contained in this
Agreement or the other Credit
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Documents or any other agreement, document or instrument among any Credit
Party, the Administrative Agent and the Lenders or executed by any Credit
Party in favor of the Administrative Agent or the Lenders (other than as
described in Sections 7.1(a) or 7.1(c)(i) above), and such breach or
failure to comply is not cured within thirty (30) days of its occurrence;
or
(d) Indebtedness Cross-Default. (i) any Credit Party shall default in
any payment of principal of or interest on any Indebtedness (other than the
Loans, Reimbursement Obligations and the Guaranty) in a principal amount
outstanding of at least $5,000,000 for the Borrower and any of its
Subsidiaries in the aggregate beyond any applicable grace period (not to
exceed thirty (30) days), if any, provided in the instrument or agreement
under which such Indebtedness was created, other than the Indebtedness set
forth on Schedule 7.1(d), which shall be paid within thirty (30) days after
the Closing Date; or (ii) any Credit Party shall default in the observance
or performance of any other material agreement or material condition
relating to any Indebtedness (other than the Loans, Reimbursement
Obligations and the Guaranty) in a principal amount outstanding of at least
$5,000,000 in the aggregate for the Credit Parties and their Subsidiaries
or contained in any instrument or agreement evidencing, securing or
relating thereto, or any other event shall occur or condition exist, the
effect of which default or other event or condition is to cause, or to
permit the holder or holders of such Indebtedness or beneficiary or
beneficiaries of such Indebtedness (or a trustee or agent on behalf of such
holder or holders or beneficiary or beneficiaries) to cause, with the
giving of notice if required, such Indebtedness to become due prior to its
stated maturity, other than the Indebtedness set forth on Schedule 7.1(d),
which shall be paid within thirty (30) days after the Closing Date; or
(iii) any Credit Party shall breach or default any Secured Hedging
Agreement (after giving effect to any grace periods with respect thereto);
or
(e) Other Cross-Defaults. The occurrence of any of the following to
the extent it could reasonably be expected to have a Material Adverse
Effect: (i) the Borrower or any Subsidiary thereof is debarred or suspended
from contracting with any Governmental Authority; or (ii) a notice of
debarment or suspension has been issued to or received by the Borrower or
any Subsidiary thereof; or (iii) an investigation by any Governmental
Authority relating to the Borrower or any Subsidiary thereof and involving
fraud, deception or willful misconduct shall have been commenced in
connection with any Government Contract or other Material Contract or the
Borrower's or any Subsidiary's activities with respect thereto; or (iv) the
actual termination of a Government Contract or other Material Contract due
to alleged fraud, deception or willful misconduct; or
(f) Bankruptcy Default. (i) A Credit Party or any of its Subsidiaries
(other than any Subsidiary listed on Schedule 7.1(f) or any dormant
Subsidiary of the Borrower) shall commence any case, proceeding or other
action (A) under any existing or future law of any jurisdiction, domestic
or foreign, relating to bankruptcy, insolvency, reorganization or relief of
debtors, seeking to have an order for relief entered with respect to it, or
seeking to adjudicate it a bankrupt or insolvent, or seeking
reorganization, arrangement, adjustment, winding-up, liquidation,
dissolution, composition or other relief
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with respect to it or its debts, or (B) seeking appointment of a receiver,
trustee, custodian, conservator or other similar official for it or for all
or any substantial part of its assets, or a Credit Party or any of its
Subsidiaries shall make a general assignment for the benefit of its
creditors; or (ii) there shall be commenced against a Credit Party or any
of its Subsidiaries (other than any Subsidiary listed on Schedule 7.1(f) or
any dormant Subsidiary of the Borrower) any case, proceeding or other
action of a nature referred to in clause (i) above which (A) results in the
entry of an order for relief or any such adjudication or appointment or (B)
remains undismissed, undischarged or unbonded for a period of sixty (60)
days; or (iii) there shall be commenced against a Credit Party or any of
its Subsidiaries (other than any Subsidiary listed on Schedule 7.1(f) or
any dormant Subsidiary of the Borrower) any case, proceeding or other
action seeking issuance of a warrant of attachment, execution, distraint or
similar process against all or any substantial part of their assets which
results in the entry of an order for any such relief which shall not have
been vacated, discharged, or stayed or bonded pending appeal within sixty
(60) days from the entry thereof; or (iv) a Credit Party or any of its
Subsidiaries (other than any Subsidiary listed on Schedule 7.1(f) or any
dormant Subsidiary of the Borrower) shall take any action in furtherance
of, or indicating its consent to, approval of, or acquiescence in, any of
the acts set forth in clause (i), (ii), or (iii) above; or (v) a Credit
Party or any of its Subsidiaries (other than any Subsidiary listed on
Schedule 7.1(f) or any dormant Subsidiary of the Borrower) shall generally
not, or shall be unable to, or shall admit in writing their inability to,
pay its debts as they become due; or
(g) Judgment Default. One or more judgments or decrees shall be
entered against a Credit Party or any of its Subsidiaries involving in the
aggregate a liability (to the extent not covered by insurance) of
$10,000,000 or more and all such judgments or decrees shall not have been
paid and satisfied, vacated, discharged, stayed or bonded pending appeal
within twenty (20) Business Days from the entry thereof or any injunction,
temporary restraining order or similar decree shall be issued against a
Credit Party or any of its Subsidiaries that, individually or in the
aggregate, could result in a Material Adverse Effect; or
(h) ERISA Default. (i) Except as could not reasonably be expected to
result in a Material Adverse Effect, (A) any Person shall engage in any
"prohibited transaction" (as defined in Section 406 of ERISA or Section
4975 of the Code) involving any Plan, or (B) any "accumulated funding
deficiency" (as defined in Section 302 of ERISA), whether or not waived,
shall exist with respect to any Plan or any Lien in favor of the PBGC or a
Plan (other than a Permitted Lien) shall arise on the assets of the Credit
Parties or any Commonly Controlled Entity, (ii) a Reportable Event shall
occur with respect to, or proceedings shall commence to have a trustee
appointed, or a trustee shall be appointed, to administer or to terminate,
any Single Employer Plan, which Reportable Event or commencement of
proceedings or appointment of a trustee is, in the reasonable opinion of
the Required Lenders, likely to result in the termination of such Plan for
purposes of Title IV of ERISA, (iii) any Single Employer Plan shall
terminate for purposes of Title IV of ERISA, or (iv) a Credit Party, any of
its Subsidiaries or any Commonly Controlled Entity shall incur any
liability in connection with a withdrawal from, or the Insolvency or
Reorganization of, any Multiemployer Plan; or
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(i) Change of Control. There shall occur a Change of Control; or
(j) Invalidity of Guaranty. At any time after the execution and
delivery thereof, the Guaranty, for any reason other than the satisfaction
in full of all Credit Party Obligations, shall cease to be in full force
and effect (other than in accordance with its terms) or shall be declared
to be null and void, or any Credit Party shall contest the validity or
enforceability of the Guaranty or any Credit Document in writing or deny in
writing that it has any further liability, including with respect to future
advances by the Lenders, under any Credit Document to which it is a party;
or
(k) Invalidity of Credit Documents. Any other Credit Document shall
fail to be in full force and effect or to give the Administrative Agent
and/or the Lenders the security interests, liens, rights, powers, priority
and privileges purported to be created thereby (except as such documents
may be terminated or no longer in force and effect in accordance with the
terms thereof, other than those indemnities and provisions which by their
terms shall survive) or any Lien shall fail to be a first priority,
perfected Lien on a material portion of the Collateral; or
(l) Hedging Agreement. Any termination payment in excess of $5,000,000
shall be due by a Credit Party under any Hedging Agreement and such amount
is not paid within the later to occur of five (5) Business Days after the
due date thereof or the expiration of grace periods, if any, in such
Hedging Agreement; or
(m) Subordinated Debt. Any default (which is not waived or cured
within the applicable period of grace) or event of default shall occur
under any Subordinated Debt in an aggregate amount of at least $5,000,000
or the subordination provisions contained therein shall cease to be in full
force and effect or to give the Lenders the rights, powers and privileges
purported to be created thereby; or
(n) Uninsured Loss. Any uninsured damage to or loss, theft or
destruction of any assets of the Credit Parties or any of their
Subsidiaries shall occur that is in excess of $20,000,000.
SECTION 7.2 ACCELERATION; REMEDIES.
Upon the occurrence and during the continuance of an Event of Default,
then, and in any such event, (a) if such event is an Event of Default specified
in Section 7.1(f) above, (i) automatically the Commitments shall immediately
terminate and the Loans (with accrued interest thereon), and all other amounts
under the Credit Documents (including without limitation the maximum amount of
all contingent liabilities under Letters of Credit) shall immediately become due
and payable and (ii) the Borrower shall cash collateralize the LOC Obligations,
and (b) if such event is any other Event of Default, any or all of the following
actions may be taken: (i) with the written consent of the Required Lenders, the
Administrative Agent may, or upon the written request of the Required Lenders,
the Administrative Agent shall, declare the Commitments to be terminated
forthwith, whereupon the Commitments shall
96
immediately terminate; (ii) the Administrative Agent may, or upon the written
request of the Required Lenders, the Administrative Agent shall, declare the
Loans (with accrued interest thereon) and all other amounts owing under this
Agreement and the Notes to be due and payable forthwith and direct the Borrower
to pay to the Administrative Agent cash collateral as security for the LOC
Obligations for subsequent drawings under then outstanding Letters of Credit an
amount equal to the maximum amount of which may be drawn under Letters of Credit
then outstanding, whereupon the same shall immediately become due and payable;
and/or (iii) with the written consent of the Required Lenders, the
Administrative Agent may, or upon the written request of the Required Lenders,
the Administrative Agent shall, exercise such other rights and remedies as
provided under the Credit Documents and under applicable law.
ARTICLE VIII
THE ADMINISTRATIVE AGENT
SECTION 8.1 APPOINTMENT.
Each Lender hereby irrevocably designates and appoints Wachovia as the
Administrative Agent of such Lender under this Agreement, and each such Lender
irrevocably authorizes Wachovia, as the Administrative Agent for such Lender, to
take such action on its behalf under the provisions of this Agreement and to
exercise such powers and perform such duties as are expressly delegated to the
Administrative Agent by the terms of this Agreement, together with such other
powers as are reasonably incidental thereto. Each Lender acknowledges that the
Credit Parties may rely on each action taken by the Administrative Agent on
behalf of the Lenders hereunder. Notwithstanding any provision to the contrary
elsewhere in this Agreement, the Administrative Agent shall not have any duties
or responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or otherwise exist against the Administrative Agent.
SECTION 8.2 DELEGATION OF DUTIES.
The Administrative Agent may execute any of its duties under this Agreement
by or through agents or attorneys-in-fact and shall be entitled to advice of
counsel concerning all matters pertaining to such duties. The Administrative
Agent shall not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care. Without limiting the
foregoing, the Administrative Agent may appoint one of its affiliates as its
agent to perform the functions of the Administrative Agent hereunder relating to
the advancing of funds to the Borrower and distribution of funds to the Lenders
and to perform such other related functions of the Administrative Agent
hereunder as are reasonably incidental to such functions.
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SECTION 8.3 EXCULPATORY PROVISIONS.
Neither the Administrative Agent nor any of its officers, directors,
employees, agents, attorneys-in-fact, Subsidiaries or affiliates shall be (a)
liable for any action lawfully taken or omitted to be taken by it or such Person
under or in connection with this Agreement (except for its or such Person's own
gross negligence or willful misconduct) or (b) responsible in any manner to any
of the Lenders for any recitals, statements, representations or warranties made
by any Credit Party or any officer thereof contained in this Agreement or in any
certificate, report, statement or other document referred to or provided for in,
or received by the Administrative Agent under or in connection with, this
Agreement or for the value, validity, effectiveness, genuineness, enforceability
or sufficiency of any of the Credit Documents or for any failure of any Credit
Party to perform its obligations hereunder or thereunder. The Administrative
Agent shall not be under any obligation to any Lender to ascertain or to inquire
as to the observance or performance by any Credit Party of any of the agreements
contained in, or conditions of, this Agreement, or to inspect the properties,
books or records of any Credit Party.
SECTION 8.4 RELIANCE BY ADMINISTRATIVE AGENT.
(a) The Administrative Agent shall be entitled to rely, and shall be
fully protected in relying, upon any note, writing, resolution, notice,
consent, certificate, affidavit, letter, cablegram, telegram, telecopy,
telex or teletype message, statement, order or other document or
conversation believed by it in good faith to be genuine and correct and to
have been signed, sent or made by the proper Person or Persons and upon
advice and statements of legal counsel (including, without limitation,
counsel to the Credit Parties), independent accountants and other experts
selected by the Administrative Agent. The Administrative Agent may deem and
treat the payee of any Note as the owner thereof for all purposes unless an
executed Assignment Agreement has been filed with the Administrative Agent
pursuant to Section 9.6(c) with respect to the Loans evidenced by such
Note. The Administrative Agent shall be fully justified in failing or
refusing to take any action under this Agreement unless it shall first
receive such advice or concurrence of the Required Lenders as it deems
appropriate or it shall first be indemnified to its satisfaction by the
Lenders against any and all liability and expense which may be incurred by
it by reason of taking or continuing to take any such action. The
Administrative Agent shall in all cases be fully protected in acting, or in
refraining from acting, under any of the Credit Documents in accordance
with a request of the Required Lenders or all of the Lenders, as may be
required under this Agreement, and such request and any action taken or
failure to act pursuant thereto shall be binding upon all the Lenders and
all future holders of the Notes.
(b) For purposes of determining compliance with the conditions
specified in Section 4.1, each Lender that has signed this Agreement shall
be deemed to have consented to, approved or accepted or to be satisfied
with, each document or other matter required thereunder to be consented to
or approved by or acceptable or satisfactory to a Lender.
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SECTION 8.5 NOTICE OF DEFAULT.
The Administrative Agent shall not be deemed to have knowledge or notice of
the occurrence of any Default or Event of Default hereunder unless the
Administrative Agent has received notice from a Lender or the Borrower referring
to this Agreement, describing such Default or Event of Default and stating that
such notice is a "notice of default". In the event that the Administrative Agent
receives such a notice, the Administrative Agent shall give prompt notice
thereof to the Lenders. The Administrative Agent shall take such action with
respect to such Default or Event of Default as shall be reasonably directed by
the Required Lenders; provided, however, that unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it shall
deem advisable in the best interests of the Lenders except to the extent that
this Agreement expressly requires that such action be taken, or not taken, only
with the consent or upon the authorization of the Required Lenders, or all of
the Lenders, as the case may be.
SECTION 8.6 NON-RELIANCE ON ADMINISTRATIVE AGENT AND OTHER LENDERS.
Each Lender expressly acknowledges that neither the Administrative Agent
nor any of its officers, directors, employees, agents, attorneys-in-fact or
affiliates has made any representation or warranty to it and that no act by the
Administrative Agent hereinafter taken, including any review of the affairs of
any Credit Party, shall be deemed to constitute any representation or warranty
by the Administrative Agent to any Lender. Each Lender represents to the
Administrative Agent that it has, independently and without reliance upon the
Administrative Agent or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, financial and other
condition and creditworthiness of the Borrower or any other Credit Party and
made its own decision to make its Loans hereunder and enter into this Agreement.
Each Lender also represents that it will, independently and without reliance
upon the Administrative Agent or any other Lender, and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit analysis, appraisals and decisions in taking or not taking action
under this Agreement, and to make such investigation as it deems necessary to
inform itself as to the business, operations, property, financial and other
condition and creditworthiness of the Borrower and the other Credit Parties.
Except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Administrative Agent hereunder, the
Administrative Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the business, operations,
property, condition (financial or otherwise), prospects or creditworthiness of
the Borrower or any other Credit Party which may come into the possession of the
Administrative Agent or any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates.
SECTION 8.7 INDEMNIFICATION.
The Lenders agree to indemnify the Administrative Agent, the Issuing
Lender, the Swingline Lender and the Other Agents in their capacity hereunder
and their Affiliates and their respective officers, directors, agents and
employees (to the extent not reimbursed by the
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Borrower and without limiting the obligation of the Borrower to do so), ratably
according to their respective Commitment Percentages in effect on the date on
which indemnification is sought under this Section, from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind whatsoever which may at any time
(including, without limitation, at any time following the payment of the Credit
Party Obligations) be imposed on, incurred by or asserted against any such
Indemnitee in any way relating to or arising out of any Credit Document or any
documents contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by any such
Indemnitee under or in connection with any of the foregoing; provided, however,
that no Lender shall be liable for the payment of any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements to the extent resulting from such Indemnitee's
gross negligence or willful misconduct, as determined by a court of competent
jurisdiction. The agreements in this Section shall survive the termination of
this Agreement and payment of the Notes and all other amounts payable hereunder.
SECTION 8.8 ADMINISTRATIVE AGENT IN ITS INDIVIDUAL CAPACITY.
The Administrative Agent and its affiliates may make loans to, accept
deposits from and generally engage in any kind of business with the Borrower and
the other Credit Parties as though the Administrative Agent were not the
Administrative Agent hereunder. With respect to its Loans made or renewed by it
and any Note issued to it, the Administrative Agent shall have the same rights
and powers under this Agreement as any Lender and may exercise the same as
though it were not the Administrative Agent, and the terms "Lender" and
"Lenders" shall include the Administrative Agent in its individual capacity.
SECTION 8.9 SUCCESSOR ADMINISTRATIVE AGENT.
The Administrative Agent may resign as Administrative Agent upon thirty
(30) days' prior written notice to the Borrower and the Lenders. If the
Administrative Agent shall resign as Administrative Agent under this Credit
Agreement and the other Credit Documents, then the Required Lenders shall
appoint from among the Lenders a successor administrative agent for the Lenders,
which successor agent shall be approved by the Borrower (such approval not to be
unreasonably withheld) so long as no Default or Event of Default has occurred
and is continuing, whereupon such successor administrative agent shall succeed
to the rights, powers and duties of the Administrative Agent, and the term
"Administrative Agent" shall mean such successor administrative agent effective
upon such appointment and approval, and the former Administrative Agent's
rights, powers and duties as Administrative Agent shall be terminated, without
any other or further act or deed on the part of such former Administrative Agent
or any of the parties to this Credit Agreement or any holders of the Notes. If
no successor Administrative Agent has accepted appointment as Administrative
Agent within thirty (30) days after the retiring Administrative Agent's giving
notice of resignation, the retiring Administrative Agent shall have the right,
on behalf of the Lenders, to appoint a successor administrative agent, which
successor shall be approved by the Borrower (such approval not to be
unreasonably withheld) so long as no Default or Event of Default has occurred
and is continuing. If no successor administrative agent has accepted appointment
as Administrative Agent within
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sixty (60) days after the retiring Administrative Agent's giving notice of
resignation, the retiring Administrative Agent's resignation shall nevertheless
become effective and the Lenders shall perform all duties of the Administrative
Agent hereunder until such time, if any, as the Required Lenders appoint a
successor administrative agent as provided for above. After any retiring
Administrative Agent's resignation as Administrative Agent, the indemnification
provisions of this Credit Agreement and the other Credit Documents and the
provisions of this Article VIII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Administrative Agent under this
Credit Agreement.
SECTION 8.10 OTHER AGENTS.
None of the Lenders or other Persons identified on the facing page or
signature pages of this Agreement as a "syndication agent," "documentation
agent," "co-agent," "joint book runner" or "joint lead arranger" (collectively,
the "Other Agents") shall have any right, power, obligation, liability,
responsibility or duty under this Agreement other than, in the case of such
Lenders, those applicable to all Lenders as such. Without limiting the
foregoing, none of the Lenders or Agents shall have or be deemed to have any
fiduciary relationship with any Lender. Each Lender acknowledges that it has not
relied, and will not rely, on any of the Lenders or other Persons so identified
in deciding to enter into this Agreement or in taking or not taking action
hereunder.
SECTION 8.11 NATURE OF DUTIES.
Except as otherwise expressly stated herein, any agent (other than the
Administrative Agent) or co-lead arranger listed from time to time on the cover
page of this Agreement shall have no obligations, responsibilities or duties
under this Agreement or under any other Credit Document other than obligations,
responsibilities and duties applicable to all Lenders in their capacity as
Lenders; provided, however, that such agents and co-lead arrangers shall be
entitled to the same rights, protections, exculpations and indemnifications
granted to the Administrative Agent under this Article VIII in their capacity as
an agent or co-lead arranger.
SECTION 8.12 RELEASES.
The Administrative Agent will release any Guarantor and any Lien on any
Collateral, which is sold as permitted by the Credit Agreement or as otherwise
permitted by the Lenders or Required Lenders, as applicable.
ARTICLE IX
MISCELLANEOUS
SECTION 9.1 AMENDMENTS, WAIVERS AND RELEASE OF COLLATERAL.
Neither this Agreement nor any of the other Credit Documents, nor any terms
hereof or thereof may be amended, modified, restated, amended and restated,
extended, replaced,
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increased or supplemented (by amendment, waiver, consent or otherwise) except in
accordance with the provisions of this Section nor may Collateral be released
except as specifically provided herein or in the Security Documents or in
accordance with the provisions of this Section. The Required Lenders may or,
with the written consent of the Required Lenders, the Administrative Agent may,
from time to time, (a) enter into with the Borrower written amendments,
supplements or modifications hereto and to the other Credit Documents for the
purpose of adding any provisions to this Agreement or the other Credit Documents
or changing in any manner the rights of the Lenders or of the Borrower hereunder
or thereunder or (b) waive or consent to the departure from, on such terms and
conditions as the Required Lenders may specify in such instrument, any of the
requirements of this Agreement or the other Credit Documents or any Default or
Event of Default and its consequences; provided, however, that no such
amendment, supplement, modification, release, waiver or consent shall:
(i) reduce the amount or extend the scheduled date of maturity of
any Loan or Note or any installment thereon, or reduce the stated rate
of any interest or fee payable hereunder (except in connection with a
waiver of interest at the increased post-default rate set forth in
Section 2.8 which shall be determined by a vote of the Required
Lenders) or extend the scheduled date of any payment thereof or
increase the amount or extend the expiration date of any Lender's
Commitment, in each case without the written consent of each Lender
directly affected thereby; provided that, it is understood and agreed
that (A) no waiver, reduction or deferral of a mandatory prepayment
required pursuant to Section 2.7(b), nor any amendment of Section
2.7(b) or the definitions of Asset Disposition, Debt Issuance, Equity
Issuance, or Recovery Event, shall constitute a reduction of the
amount of, or an extension of the scheduled date of, the scheduled
date of maturity of, or any installment of, any Loan or Note, (B) any
reduction in the stated rate of interest on Revolving Loans shall only
require the written consent of each Lender holding a Revolving
Commitment and (C) any reduction in the stated rate of interest on the
Term Loan shall only require the written consent of each Lender
holding a portion of the outstanding Term Loan; or
(ii) amend, modify or waive any provision of this Section or
reduce the percentage specified in the definition of Required Lenders,
without the written consent of all the Lenders; or
(iii) amend, modify or waive any provision of Article VIII
without the written consent of the then Administrative Agent; or
(iv) release the Borrower or all or substantially all of the
Guarantors from obligations under the Guaranty, without the written
consent of all of the Lenders and Hedging Agreement Providers; or
(v) release all or substantially all of the Collateral without
the written consent of all of the Lenders and Hedging Agreement
Providers; or
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(vi) subordinate the Loans to any other Indebtedness without the
written consent of all of the Lenders; or
(vii) permit a Letter of Credit to have an original expiry date
more than twelve (12) months from the date of issuance without the
consent of each of the Revolving Lenders; provided, that the expiry
date of any Letter of Credit may be extended in accordance with the
terms of Section 2.3(a); or
(viii) permit the Borrower to assign or transfer any of its
rights or obligations under this Agreement or other Credit Documents
without the written consent of all of the Lenders; or
(ix) amend, modify or waive any provision of the Credit Documents
requiring consent, approval or request of the Required Lenders or all
Lenders without the written consent of the Required Lenders or all the
Lenders as appropriate; or
(x) without the consent of Revolving Lenders holding in the
aggregate more than 50% of the outstanding Revolving Commitments (or
if the Revolving Commitments have been terminated, the aggregate
principal amount of outstanding Revolving Loans), amend, modify or
waive any provision in Section 4.2 or waive any Default or Event of
Default (or amend any Credit Document to effectively waive any Default
or Event of Default) if the effect of such amendment, modification or
waiver is that the Revolving Lenders shall be required to fund
Revolving Loans when such Lenders would otherwise not be required to
do so; or
(xi) amend, modify or waive the order in which Credit Party
Obligations are paid or in a manner that would alter the pro rata
sharing of payments by and among the Lenders in Section 2.11(b)
without the written consent of each Lender and each Hedging Agreement
Provider directly affected thereby; or
(xii) amend the definitions of "Hedging Agreement," "Secured
Hedging Agreement," or "Hedging Agreement Provider" without the
consent of any Hedging Agreement Provider that would be adversely
affected thereby.
provided, further, that no amendment, waiver or consent affecting the rights or
duties of the Administrative Agent, the Issuing Lender or the Swingline Lender
under any Credit Document shall in any event be effective, unless in writing and
signed by the Administrative Agent, the Issuing Lender and/or the Swingline
Lender, as applicable, in addition to the Lenders required hereinabove to take
such action.
Any such waiver, any such amendment, supplement or modification and any
such release shall apply equally to each of the Lenders and shall be binding
upon the Borrower, the other Credit Parties, the Lenders, the Administrative
Agent and all future holders of the Notes. In the case of any waiver, the
Borrower, the other Credit Parties, the Lenders and the Administrative
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Agent shall be restored to their former position and rights hereunder and under
the outstanding Loans and Notes and other Credit Documents, and any Default or
Event of Default waived shall be deemed to be cured and not continuing; but no
such waiver shall extend to any subsequent or other Default or Event of Default,
or impair any right consequent thereon.
Notwithstanding any of the foregoing to the contrary, the consent of the
Borrower and the other Credit Parties shall not be required for any amendment,
modification or waiver of the provisions of Article VIII (other than the
provisions of Section 8.9).
Notwithstanding the fact that the consent of all the Lenders is required in
certain circumstances as set forth above, (a) each Lender is entitled to vote as
such Lender sees fit on any bankruptcy reorganization plan that affects the
Loans, and each Lender acknowledges that the provisions of Section 1126(c) of
the Bankruptcy Code supersedes the unanimous consent provisions set forth herein
and (b) the Required Lenders may consent to allow a Credit Party to use cash
collateral in the context of a bankruptcy or insolvency proceeding.
SECTION 9.2 NOTICES.
(a) Except as otherwise provided in Article II, all notices, requests
and demands to or upon the respective parties hereto to be effective shall
be in writing (including by telecopy or other electronic communications as
provided below), and, unless otherwise expressly provided herein, shall be
deemed to have been duly given or made (i) when delivered by hand, (ii)
when transmitted via telecopy (or other facsimile device) to the number set
out herein, (iii) the Business Day following the day on which the same has
been delivered prepaid (or pursuant to an invoice arrangement) to a
reputable national overnight air courier service, or (iv) the third
Business Day following the day on which the same is sent by certified or
registered mail, postage prepaid, in each case, addressed as follows in the
case of the Borrower, the other Credit Parties and the Administrative
Agent, and, in the case of each of the Lenders, as set forth in such
Lender's Administrative Details Form, or to such other address as may be
hereafter notified by the respective parties hereto and any future holders
of the Notes:
The Borrower
and the other
Credit Parties: Armor Holdings, Inc.
00000 Xxxxxxxxxxxxx Xxxxxxx
Xxxxxxxxxxxx, Xxxxxxx 00000
Attention: Xxxxxx X. Xxxxxxxx
Telecopier: (000) 000-0000
Telephone: (000) 000-0000
with a copy to:
Xxxx Xxxxxxx, P.C.
1350 Avenue of the Americas, 00xx Xxxxx
Xxx Xxxx Xxxx, Xxx Xxxx 00000
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Attention: Xxxxxx X. Xxxxxxxx
Telecopier: (000) 000-0000
Telephone: (000) 000-0000
The Administrative
Agent: Wachovia Bank, National Association,
as Administrative Agent
Charlotte Plaza
000 Xxxxx Xxxxxxx Xxxxxx, XX0
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000-0000
Attention: Syndication Agency Services
Telecopier: (000) 000-0000
Telephone: (000) 000-0000
with a copy to:
Wachovia Bank, National Association
Xxx Xxxxx Xxxxx
Xxxxxxxx XX0000
Xxxxxxxxxxxx, Xxxxxxxxxxxx 00000
Attention: Xxxxxxx X. Xxx
Telecopier: (000) 000-0000
Telephone: (000) 000-0000
provided, that notices given by the Borrower pursuant to Section 2.1 or
Section 2.9 hereof shall be effective only upon receipt thereof by the
Administrative Agent.
(b) Notices and other communications to the Lenders or the
Administrative Agent hereunder may be delivered or furnished by electronic
communication (including e-mail and Internet or intranet websites) pursuant
to procedures approved by the Administrative Agent; provided that the
foregoing shall not apply to notices to any Lender pursuant to Article II
if such Lender, as applicable, has notified the Administrative Agent that
it is incapable of receiving notices under such Section by electronic
communication. The Administrative Agent or the Borrower may, in its
discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by
it; provided that approval of such procedures may be limited to particular
notices or communications.
Unless the Administrative Agent otherwise prescribes, (a) notices and
other communications sent to an e-mail address shall be deemed received
upon the sender's receipt of an acknowledgement from the intended recipient
(such as by the "return receipt requested" function, as available, return
e-mail or other written acknowledgement); provided that if such notice or
other communication is not sent during the normal business hours of the
recipient, such notice or communication shall be deemed to have been sent
at the opening of business on the next business day for the recipient, and
(b) notices or communications posted to an Internet or intranet website
shall be deemed
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received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (a) of notification that such
notice or communication is available and identifying the website address
therefor.
SECTION 9.3 NO WAIVER; CUMULATIVE REMEDIES.
No failure to exercise and no delay in exercising, on the part of the
Administrative Agent or any Lender, any right, remedy, power or privilege
hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.
SECTION 9.4 SURVIVAL OF REPRESENTATIONS AND WARRANTIES.
All representations and warranties made hereunder and in any document,
certificate or statement delivered pursuant hereto or in connection herewith
shall survive the execution and delivery of this Agreement and the Notes and the
making of the Loans; provided that all such representations and warranties shall
terminate on the date upon which the Commitments have been terminated and all
amounts owing hereunder and under any Notes have been paid in full.
SECTION 9.5 PAYMENT OF EXPENSES AND TAXES.
The Credit Parties agree (a) to pay or reimburse the Administrative Agent
and the Arranger for all their reasonable out-of-pocket costs and expenses
incurred in connection with the development, preparation, negotiation, printing
and execution of, and any amendment, supplement or modification to, this
Agreement and the other Credit Documents and any other documents prepared in
connection herewith or therewith (including, without limitation, all CUSIP fees
for registration with S&P's CUSIP Service Bureau, and the consummation and
administration of the transactions contemplated hereby and thereby, together
with the reasonable fees and disbursements of counsel to the Administrative
Agent and the Arranger, (b) to pay or reimburse each Lender and the
Administrative Agent for all its costs and expenses incurred in connection with
the enforcement or preservation of any rights under this Agreement and the other
Credit Documents, including, without limitation, the reasonable fees and
disbursements of counsel to the Administrative Agent and to the Lenders
(including reasonable allocated costs of in-house legal counsel), (c) on demand,
to pay, indemnify, and hold each Lender, the Administrative Agent, the Arranger
and the Other Agents harmless from, any and all recording and filing fees and
any and all liabilities with respect to, or resulting from any delay in paying,
stamp, excise and other similar taxes, if any, which may be payable or
determined to be payable in connection with the execution and delivery of, or
consummation or administration of any of the transactions contemplated by, or
any amendment, supplement or modification of, or any waiver or consent under or
in respect of, the Credit Documents and any such other documents, (d) to pay,
indemnify, and hold each Lender, the Administrative Agent, the Arranger, the
Other Agents and their Affiliates and their respective officers, directors,
employees, partners, members, counsel, agents, representatives, advisors and
affiliates (collectively called the "Indemnitees") harmless from and against,
any and all other liabilities, obligations, losses, damages, penalties,
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actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever with respect to the execution, delivery, enforcement,
performance and administration of the Credit Documents and any such other
documents and the use, or proposed use, of proceeds of the Loans and (e) to pay
any civil penalty or fine assessed by the U.S. Department of the Treasury's
Office of Foreign Assets Control against, and all reasonable costs and expenses
(including counsel fees and disbursements) incurred in connection with defense
thereof by the Administrative Agent or any Lender as a result of the funding of
Loans, the issuance of Letters of Credit, the acceptance of payments or of
Collateral due under the Credit Documents (all of the foregoing, collectively,
the "Indemnified Liabilities"); provided, however, that the Borrower shall not
have any obligation hereunder to an Indemnitee with respect to Indemnified
Liabilities arising from the gross negligence or willful misconduct of such
Indemnitee, as determined by a court of competent jurisdiction pursuant to a
final non-appealable judgment. The agreements in this Section shall survive
repayment of the Loans, Notes and all other amounts hereunder.
SECTION 9.6 SUCCESSORS AND ASSIGNS; PARTICIPATIONS; PURCHASING LENDERS.
(a) This Agreement shall be binding upon and inure to the benefit of
the Credit Parties, the Lenders, the Administrative Agent, all future
holders of the Notes and their respective successors and assigns, except
that the Credit Parties may not assign or transfer any of their rights or
obligations under this Agreement or the other Credit Documents without the
prior written consent of each Lender.
(b) Any Lender may, in the ordinary course of its business and in
accordance with applicable law, at any time sell to one or more banks or
other entities ("Participants") participating interests in any Loan owing
to such Lender, any Note held by such Lender, any Commitment of such
Lender, or any other interest of such Lender hereunder. In the event of any
such sale by a Lender of participating interests to a Participant, such
Lender's obligations under this Agreement to the other parties to this
Agreement shall remain unchanged, such Lender shall remain solely
responsible for the performance thereof, such Lender shall remain the
holder of any such Note for all purposes under this Agreement, and the
Borrower and the Administrative Agent shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under this Agreement. No Lender shall transfer or grant any
participation under which the Participant shall have rights to approve any
amendment to or waiver of this Agreement or any other Credit Document
except to the extent such amendment or waiver would (i) extend the
scheduled maturity of any Loan or Note or any installment thereon in which
such Participant is participating, or reduce the stated rate or extend the
time of payment of interest or fees thereon (except in connection with a
waiver of interest at the increased post-default rate set forth in Section
2.9 which shall be determined by a vote of the Required Lenders) or reduce
the principal amount thereof, or increase the amount of the Participant's
participation over the amount thereof then in effect; provided that, it is
understood and agreed that (A) no waiver, reduction or deferral of a
mandatory prepayment required pursuant to Section 2.7(b), nor any amendment
of Section 2.7(b) or the definitions of Asset Disposition, Debt Issuance,
Equity Issuance, or Recovery Event, shall constitute a reduction of the
amount of, or an extension of the scheduled date of, the scheduled date of
maturity of, or any installment of, any Loan or
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Note, (B) a waiver of any Default or Event of Default shall not constitute
a change in the terms of such participation, and (C) an increase in any
Commitment or Loan shall be permitted without consent of any participant if
the Participant's participation is not increased as a result thereof, (ii)
release all or substantially all of the Guarantors from their obligations
under the Guaranty, (iii) release all or substantially all of the
Collateral, or (iv) consent to the assignment or transfer by the Borrower
of any of its rights and obligations under this Agreement. In the case of
any such participation, the Participant shall not have any rights under
this Agreement or any of the other Credit Documents (the Participant's
rights against such Lender in respect of such participation to be those set
forth in the agreement executed by such Lender in favor of the Participant
relating thereto) and all amounts payable by the Borrower hereunder shall
be determined as if such Lender had not sold such participation; provided
that each Participant shall be entitled to the benefits of Sections 2.14,
2.15, 2.16, 2.17 and 9.5 with respect to its participation in the
Commitments and the Loans outstanding from time to time; provided further,
that no Participant shall be entitled to receive any greater amount
pursuant to such Sections than the transferor Lender would have been
entitled to receive in respect of the amount of the participation
transferred by such transferor Lender to such Participant had no such
transfer occurred.
(c) Any Lender may, in accordance with applicable law, at any time,
sell or assign to any Lender or any Affiliate or Approved Fund thereof and
to one or more additional banks, insurance companies, financial
institutions, investment funds or other entities ("Purchasing Lenders"),
all or any part of its rights and obligations under this Agreement and the
Notes in minimum amounts of (i) $1,000,000 (or such lesser amount approved
by the Administrative Agent) with respect to its Revolving Commitment and
its Revolving Loans (or, if less, the entire amount of such Lender's
Revolving Commitment and Revolving Loans) and (ii) $1,000,000 (or such
lesser amount approved by the Administrative Agent) with respect to its
Term Loans (or, if less, the entire amount of such Lender's Term Loans),
pursuant to an Assignment Agreement, executed by such Purchasing Lender,
such transferor Lender, the Administrative Agent (such consent not to be
unreasonably withheld or delayed), the Issuing Lender (such consent not to
be unreasonably withheld or delayed), and the Borrower (to the extent
required), and delivered to the Administrative Agent for its acceptance and
recording in the Register; provided, however, that (A) any sale or
assignment to an existing Lender, or Affiliate or Approved Fund thereof,
shall not require the consent of the Borrower nor shall any such sale or
assignment be subject to the minimum assignment amounts specified herein,
(B) so long as no Default or Event of Default shall have occurred and be
continuing, any sale or assignment of a portion of the Revolving Loans and
a Revolving Loan Commitment shall require the consent of the Borrower (such
consent not to be unreasonably withheld or delayed) and (C) any sale or
assignment of a portion of the Term Loan and a Term Loan Commitment shall
not require the consent of the Borrower. Upon such execution, delivery,
acceptance and recording, from and after the Transfer Effective Date
specified in such Assignment Agreement, (1) the Purchasing Lender
thereunder shall be a party hereto and, to the extent provided in such
Assignment Agreement, have the rights and obligations of a Lender hereunder
with a Commitment as set forth therein, and (2) the transferor Lender
thereunder shall, to the extent provided in
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such Assignment Agreement, be released from its obligations under this
Agreement (and, in the case of an Assignment Agreement covering all or the
remaining portion of a transferor Lender's rights and obligations under
this Agreement, such transferor Lender shall cease to be a party hereto;
provided, however, that such Lender shall continue to be entitled to any
indemnification rights that expressly survive hereunder). Such Assignment
Agreement shall be deemed to amend this Agreement to the extent, and only
to the extent, necessary to reflect the addition of such Purchasing Lender
and the resulting adjustment of Commitment Percentages arising from the
purchase by such Purchasing Lender of all or a portion of the rights and
obligations of such transferor Lender under this Agreement and the Notes.
On or prior to the Transfer Effective Date specified in such Assignment
Agreement, the Borrower, at its own expense, shall execute and deliver to
the Administrative Agent in exchange for the Notes delivered to the
Administrative Agent pursuant to such Assignment Agreement new Notes to the
order of such Purchasing Lender in an amount equal to the Commitment
assumed by it pursuant to such Assignment Agreement and, unless the
transferor Lender has not retained a Commitment hereunder, new Notes to the
order of the transferor Lender in an amount equal to the Commitment
retained by it hereunder. Such new Notes shall be dated the Closing Date
and shall otherwise be in the form of the Notes replaced thereby.
Notwithstanding anything to the contrary contained in this Section, a
Lender may assign any or all of its rights under this Agreement to an
Affiliate or a Approved Fund of such Lender without delivering an
Assignment Agreement to the Administrative Agent; provided, however, that
(x) the Credit Parties and the Administrative Agent may continue to deal
solely and directly with such assigning Lender until an Assignment
Agreement has been delivered to the Administrative Agent for recordation on
the Register, (y) the failure of such assigning lender to deliver a
Assignment Agreement to the Administrative Agent shall not affect the
legality, validity or binding effect of such assignment and (z) an
Assignment Agreement between the assigning Lender an Affiliate or Approved
Fund of such Lender shall be effective as of the date specified in such
Assignment Agreement.
(d) The Administrative Agent shall maintain at its address referred to
in Section 9.2 a copy of each Assignment Agreement delivered to it and a
register (the "Register") for the recordation of the names and addresses of
the Lenders and the Commitment of, and principal amount of the Loans owing
to, each Lender from time to time. A Loan (and the related Note) recorded
on the Register may be assigned or sold in whole or in part upon
registration of such assignment or sale on the Register. The entries in the
Register shall be conclusive, in the absence of manifest error, and the
Borrower, the Administrative Agent and the Lenders may treat each Person
whose name is recorded in the Register as the owner of the Loan recorded
therein 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. In the case of an
assignment pursuant to the last sentence of Section 9.6(c) as to which an
Assignment Agreement is not delivered to the Administrative Agent, the
assigning Lender shall, acting solely for this purpose as a non-fiduciary
agent of the Credit Parties, maintain a comparable register on behalf of
the Credit Parties. In the event that any Lender sells participations in a
Loan recorded on the Register, such Lender shall maintain a register
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on which it enters the name of all participants in such Loans held by it
(the "Participant Register"). A Loan recorded on the Register (and the
registered Note, if any, evidencing the same) may be participated in whole
or in part only by registration of such participation on the Participant
Register (and each registered Note shall expressly so provide). Any
participation of such Loan recorded on the Register (and the registered
Note, if any, evidencing the same) may be effected only by the registration
of such participation on the Participant Register.
(e) Upon its receipt of a duly executed Assignment Agreement, together
with payment to the Administrative Agent by the transferor Lender or the
Purchasing Lender, as agreed between them, of a registration and processing
fee of $3,500 for each Purchasing Lender (other than a Purchasing Lender
that is an Affiliate or Approved Fund of the transferor Lender) listed in
such Assignment Agreement and the Notes subject to such Assignment
Agreement, the Administrative Agent shall (i) accept such Assignment
Agreement, (ii) record the information contained therein in the Register
and (iii) give prompt notice of such acceptance and recordation to the
Lenders and the Borrower.
(f) The Borrower authorizes each Lender to disclose to any Participant
or Purchasing Lender (each, a "Transferee") and any prospective Transferee
any and all financial information in such Lender's possession concerning
the Borrower and its Subsidiaries which has been delivered to such Lender
by or on behalf of the Borrower pursuant to this Agreement or which has
been delivered to such Lender by or on behalf of the Borrower in connection
with such Lender's credit evaluation of the Borrower and its Affiliates
prior to becoming a party to this Agreement, in each case subject to
Section 9.15.
(g) At the time of each assignment pursuant to this Section to a
Person which is not already a Lender hereunder and which is not a United
States person (as such term is defined in Section 7701(a)(30) of the Code)
for Federal income tax purposes, the respective assignee Lender shall
provide to the Borrower and the Administrative Agent the appropriate
Internal Revenue Service Forms described in Section 2.17.
(h) Nothing herein shall prohibit any Lender from pledging or
assigning any of its rights under this Agreement (including, without
limitation, any right to payment of principal and interest under any Note)
to secure obligations of such Lender, including without limitation, (i) any
pledge or assignment to secure obligations to a Federal Reserve Bank and
(ii) in the case of any Lender that is a fund or trust or entity that
invests in commercial bank loans in the ordinary course of business, any
pledge or assignment to any holders of obligations owed, or securities
issued, by such Lender including to any trustee for, or any other
representative of, such holders; it being understood that the requirements
for assignments set forth in this Section shall not apply to any such
pledge or assignment of a security interest, except with respect to any
foreclosure or similar action taken by such pledgee or assignee with
respect to such pledge or assignment; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto and no such pledgee or assignee
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shall have any voting rights under this Agreement unless and until the
requirements for assignments set forth in this Section are complied with in
connection with any foreclosure or similar action taken by such pledgee or
assignee.
SECTION 9.7 ADJUSTMENTS; SET-OFF.
(a) Each Lender agrees that if any Lender (a "Benefited Lender") shall
at any time receive any payment of all or part of its Loans, or interest
thereon, or receive any collateral in respect thereof (whether voluntarily
or involuntarily, by set-off, pursuant to a Bankruptcy Event 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, or
interest thereon, such Benefited Lender shall purchase for cash from the
other Lenders a participating interest in such portion of each such other
Lender's Loan, or shall provide such other Lenders with the benefits of any
such collateral, or the proceeds thereof, as shall be necessary to cause
such Benefited 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 Benefited 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 each Lender so purchasing a
portion of another Lender's Loans may exercise all rights of payment
(including, without limitation, rights of set-off) with respect to such
portion as fully as if such Lender were the direct holder of such portion.
(b) In addition to any rights and remedies of the Lenders provided by
law (including, without limitation, other rights of set-off), each Lender
shall have the right, without prior notice to the Borrower or the
applicable Credit Party, any such notice being expressly waived by the
Credit Parties to the extent permitted by applicable law, upon the
occurrence of any Event of Default, to setoff and appropriate and apply any
and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in
any currency, in each case whether direct or indirect, absolute or
contingent, matured or unmatured, at any time held by or owing to such
Lender or any branch or agency thereof to or for the credit or the account
of the Borrower or any other Credit Party, or any part thereof in such
amounts as such Lender may elect, against and on account of the Loans and
other Credit Party Obligations of the Borrower and the other Credit Parties
to the Administrative Agent and the Lenders and claims of every nature and
description of the Administrative Agent and the Lenders against the
Borrower and the other Credit Parties, in any currency, whether arising
hereunder, under any other Credit Document or any Secured Hedging Agreement
pursuant to the terms of this Agreement, as such Lender may elect, whether
or not the Administrative Agent or the Lenders have made any demand for
payment and although such obligations, liabilities and claims may be
contingent or unmatured. The aforesaid right of set-off may be exercised by
such Lender against the Borrower, any other Credit Party or against any
trustee in bankruptcy, debtor in possession, assignee for the benefit of
creditors, receiver or execution, judgment or attachment creditor of the
Borrower or any other Credit Party, or against anyone else claiming through
or against the Borrower, any other Credit Party or any such trustee in
bankruptcy, debtor in possession, assignee
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for the benefit of creditors, receiver, or execution, judgment or
attachment creditor, notwithstanding the fact that such right of set-off
shall not have been exercised by such Lender prior to the occurrence of any
Event of Default. Each Lender agrees promptly to notify the Borrower and
the Administrative Agent 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.
SECTION 9.8 TABLE OF CONTENTS AND SECTION HEADINGS.
The table of contents and the Section and subsection headings herein are
intended for convenience only and shall be ignored in construing this Agreement.
SECTION 9.9 COUNTERPARTS.
This Agreement may be executed by one or more of the parties to this
Agreement on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument. A set
of the copies of this Agreement signed by all the parties shall be lodged with
the Borrower and the Administrative Agent.
SECTION 9.10 EFFECTIVENESS.
This Agreement shall become effective on the date on which all of the
parties have signed a copy hereof (whether the same or different copies) and
shall have delivered the same to the Administrative Agent pursuant to Section
9.2 or, in the case of the Lenders, shall have given to the Administrative Agent
written, telecopied or telex notice (actually received) at such office that the
same has been signed and mailed to it.
SECTION 9.11 SEVERABILITY.
Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.
SECTION 9.12 INTEGRATION.
This Agreement and the other Credit Documents represent the agreement of
the Borrower, the other Credit Parties, the Administrative Agent and the Lenders
with respect to the subject matter hereof, and there are no promises,
undertakings, representations or warranties by the Administrative Agent, the
Borrower, the other Credit Parties, or any Lender relative to the subject matter
hereof not expressly set forth or referred to herein or therein.
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SECTION 9.13 GOVERNING LAW.
This Agreement and, unless otherwise specified therein, each other Credit
Document and the rights and obligations of the parties under this Agreement and
such other Credit Document shall be governed by, and construed and interpreted
in accordance with, the law of the State of New York (including Sections 5-1401
and 5-1402 of The New York General Obligations Law).
SECTION 9.14 CONSENT TO JURISDICTION AND SERVICE OF PROCESS.
All judicial proceedings brought against any party hereto with respect to
this Agreement, any Note or any of the other Credit Documents may be brought in
any state or federal court of competent jurisdiction in the State of New York,
and, by execution and delivery of this Agreement, each party hereto accepts, for
itself and in connection with its properties, generally and unconditionally, the
non-exclusive jurisdiction of the aforesaid courts and irrevocably agrees to be
bound by any final judgment rendered thereby in connection with this Agreement
from which no appeal has been taken or is available. Each party hereto agrees
that all service of process in any such proceedings in any such court may be
effected by mailing a copy thereof by registered or certified mail (or any
substantially similar form of mail), postage prepaid, to it at its address set
forth in Section 9.2 or at such other address of which the Administrative Agent
shall have been notified pursuant thereto, such service being hereby
acknowledged by each party hereto to be effective and binding service in every
respect. The Borrower, the other Credit Parties, the Administrative Agent and
the Lenders irrevocably waive any objection, including, without limitation, any
objection to the laying of venue or based on the grounds of forum non-conveniens
which it may now or hereafter have to the bringing of any such action or
proceeding in any such jurisdiction. Nothing herein shall affect the right to
serve process in any other manner permitted by law or shall limit the right of
any Lender to bring proceedings against the Borrower or the other Credit Parties
in the court of any other jurisdiction.
SECTION 9.15 CONFIDENTIALITY.
The Administrative Agent and each of the Lenders agrees that it will use
its best efforts not to disclose without the prior consent of the Borrower any
information (the "Information") with respect to the Credit Parties and their
Subsidiaries which is furnished pursuant to this Agreement, any other Credit
Document or any documents contemplated by or referred to herein or therein and
which is designated by the Borrower to the Lenders in writing as confidential or
as to which it is otherwise reasonably clear such information is not public,
except that any Lender may disclose any such Information (a) to its employees,
affiliates, auditors or counsel or to another Lender, (b) as has become
generally available to the public other than by a breach of this Section, (c) as
may be required or appropriate in any report, statement or testimony submitted
to any municipal, state or federal regulatory body having or claiming to have
jurisdiction over such Lender or to the Federal Reserve Board or the Federal
Deposit Insurance Corporation or the Office of the Comptroller of the Currency
or the National Association of Insurance Commissioners or similar organizations
(whether in the United States or elsewhere) or their successors, (d) as may be
required or appropriate in response to any summons or subpoena or any law,
order, regulation or ruling applicable to such Lender, (e) to (i) any
prospective Participant or assignee in connection with any contemplated transfer
pursuant to Section 9.6 or
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(ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrower, provided that such prospective
transferee shall have been made aware of this Section and shall have agreed to
be bound by its provisions as if it were a party to this Agreement, (f) to Gold
Sheets and other similar bank trade publications; such information to consist of
deal terms and other information regarding the credit facilities evidenced by
this Agreement customarily found in such publications, (g) in connection with
any suit, action or proceeding for the purpose of defending itself, reducing its
liability, or protecting or exercising any of its claims, rights, remedies or
interests under or in connection with the Credit Documents or any Secured
Hedging Agreement, (h) to any direct or indirect contractual counterparty in
swap agreements or such contractual counterparty's professional advisor (so long
as such contractual counterparty or professional advisor to such contractual
counterparty agrees to be bound by the provisions of this Section), (i) any
nationally recognized rating agency that requires access to information about a
Lender's investment portfolio in connection with ratings issued with respect to
such Lender, (j) to a Person that is an investor or prospective investor in a
Securitization (as defined below) that agrees that its access to information
regarding the Borrower and the Loans is solely for purposes of evaluating an
investment in such Securitization; provided that such Person shall have been
made aware of this Section and shall have agreed to be bound by its provisions
as if it were a party to this Agreement, or (k) to a Person that is a trustee,
collateral manager, servicer, noteholder or secured party in a Securitization in
connection with the administration, servicing and reporting on the assets
serving as collateral for such Securitization; provided that such Person shall
have been made aware of this Section and shall have agreed to be bound by its
provisions as if it were a party to this Agreement provided that, with respect
to Information disclosed pursuant to clauses (c), (d) or (g), the Borrower shall
have been given as much notice as reasonably possible and shall have the right
to pursue a protective order from a court of competent jurisdiction to prevent
such disclosure. For purposes of this Section "Securitization" shall mean a
public or private offering by a Lender or any of its affiliates or their
respective successors and assigns, of securities which represent an interest in,
or which are collateralized in whole or in part by, the Loans.
SECTION 9.16 ACKNOWLEDGMENTS.
The Borrower and the other Credit Parties each hereby acknowledges that:
(a) it has been advised by counsel in the negotiation, execution and
delivery of each Credit Document;
(b) neither the Administrative Agent nor any Lender has any fiduciary
relationship with or duty to the Borrower or any other Credit Party arising
out of or in connection with this Agreement and the relationship between
the Administrative Agent and the Lenders, on one hand, and the Borrower and
the other Credit Parties, on the other hand, in connection herewith is
solely that of debtor and creditor; and
(c) no joint venture exists among the Lenders or among the Borrower or
the other Credit Parties and the Lenders.
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SECTION 9.17 WAIVERS OF JURY TRIAL; WAIVER OF CONSEQUENTIAL DAMAGES.
THE BORROWER, THE OTHER CREDIT PARTIES, THE ADMINISTRATIVE AGENT AND THE
LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
AGREEMENT OR ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN. Each of
the Borrower, the other Credit Parties, the Administrative Agent and the Lenders
agree not to assert any claim against any other party to this Agreement or any
their respective directors, officers, employees, attorneys, Affiliates or
agents, on any theory of liability, for special, indirect, consequential or
punitive damages arising out of or otherwise relating to any of the transactions
contemplated herein.
SECTION 9.18 PATRIOT ACT NOTICE.
Each Lender and the Administrative Agent (for itself and not on behalf of
any other party) hereby notifies the Borrower that, pursuant to the requirements
of the USA Patriot Act, Title III of Pub. L. 107-56, signed into law October 26,
2001 (the "Patriot Act"), it is required to obtain, verify and record
information that identifies the Borrower, which information includes the name
and address of the Borrower and other information that will allow such Lender or
the Administrative Agent, as applicable, to identify the Borrower in accordance
with the Patriot Act.
SECTION 9.19 RESOLUTION OF DRAFTING AMBIGUITIES.
Each Credit Party acknowledges and agrees that it was represented by
counsel in connection with the execution and delivery of this Agreement and the
other Credit Documents to which it is a party, that it and its counsel reviewed
and participated in the preparation and negotiation hereof and thereof and that
any rule of construction to the effect that ambiguities are to be resolved
against the drafting party shall not be employed in the interpretation hereof or
thereof.
ARTICLE X
GUARANTY
SECTION 10.1 THE GUARANTY.
In order to induce the Lenders to enter into this Agreement and any Hedging
Agreement Provider to enter into any Secured Hedging Agreement and to extend
credit hereunder and thereunder and in recognition of the direct benefits to be
received by the Guarantors from the Extensions of Credit hereunder and any
Secured Hedging Agreement, each of the Guarantors hereby agrees with the
Administrative Agent, the Lenders and the Hedging Agreement Providers as
follows: the Guarantor hereby unconditionally and irrevocably jointly and
severally guarantees as primary obligor and not merely as surety the full and
prompt payment when due, whether upon maturity, by acceleration or otherwise, of
any and all Credit Party Obligations. If
115
any or all of the indebtedness becomes due and payable hereunder or under any
Secured Hedging Agreement, each Guarantor unconditionally promises to pay such
indebtedness to the Administrative Agent, the Lenders, the Hedging Agreement
Providers, or their respective order, or demand, together with any and all
reasonable expenses which may be incurred by the Administrative Agent or the
Lenders in collecting any of the Credit Party Obligations. The Guaranty set
forth in this Article X is a guaranty of timely payment and not of collection.
The word "indebtedness" is used in this Article X in its most comprehensive
sense and includes any and all advances, debts, obligations and liabilities of
the Borrower, including specifically all Credit Party Obligations, arising in
connection with this Credit Agreement, the other Credit Documents or any Secured
Hedging Agreement, in each case, heretofore, now, or hereafter made, incurred or
created, whether voluntarily or involuntarily, absolute or contingent,
liquidated or unliquidated, determined or undetermined, whether or not such
indebtedness is from time to time reduced, or extinguished and thereafter
increased or incurred, whether the Borrower may be liable individually or
jointly with others, whether or not recovery upon such indebtedness may be or
hereafter become barred by any statute of limitations, and whether or not such
indebtedness may be or hereafter become otherwise unenforceable.
Notwithstanding any provision to the contrary contained herein or in any
other of the Credit Documents, to the extent the obligations of a Guarantor
shall be adjudicated to be invalid or unenforceable for any reason (including,
without limitation, because of any applicable state or federal law relating to
fraudulent conveyances or transfers) then the obligations of each such Guarantor
hereunder shall be limited to the maximum amount that is permissible under
applicable law (whether federal or state and including, without limitation, the
Bankruptcy Code).
SECTION 10.2 BANKRUPTCY.
Additionally, each of the Guarantors unconditionally and irrevocably
guarantees jointly and severally the payment of any and all Credit Party
Obligations of the Borrower to the Lenders and any Hedging Agreement Provider
whether or not due or payable by the Borrower upon the occurrence of any of the
events specified in Section 7.1(f), and unconditionally promises to pay such
Credit Party Obligations to the Administrative Agent for the account of the
Lenders and to any such Hedging Agreement Provider, or order, on demand, in
lawful money of the United States. Each of the Guarantors further agrees that to
the extent that the Borrower or a Guarantor shall make a payment or a transfer
of an interest in any property to the Administrative Agent, any Lender or any
Hedging Agreement Provider, which payment or transfer or any part thereof is
subsequently invalidated, declared to be fraudulent or preferential, or
otherwise is avoided, and/or required to be repaid to the Borrower or a
Guarantor, the estate of the Borrower or a Guarantor, a trustee, receiver or any
other party under any bankruptcy law, state or federal law, common law or
equitable cause, then to the extent of such avoidance or repayment, the
obligation or part thereof intended to be satisfied shall be revived and
continued in full force and effect as if said payment had not been made.
SECTION 10.3 NATURE OF LIABILITY.
The liability of each Guarantor hereunder is exclusive and independent of
any security for or other guaranty of the Credit Party Obligations of the
Borrower whether executed by any
116
such Guarantor, any other guarantor or by any other party, and no Guarantor's
liability hereunder shall be affected or impaired by (a) any direction as to
application of payment by the Borrower or by any other party, or (b) any other
continuing or other guaranty, undertaking or maximum liability of a guarantor or
of any other party as to the Credit Party Obligations of the Borrower, or (c)
any payment on or in reduction of any such other guaranty or undertaking, or (d)
any dissolution, termination or increase, decrease or change in personnel by the
Borrower, or (e) any payment made to the Administrative Agent, the Lenders or
any Hedging Agreement Provider on the Credit Party Obligations which the
Administrative Agent, such Lenders or such Hedging Agreement Provider repay the
Borrower pursuant to court order in any bankruptcy, reorganization, arrangement,
moratorium or other debtor relief proceeding, and each of the Guarantors waives
any right to the deferral or modification of its obligations hereunder by reason
of any such proceeding.
SECTION 10.4 INDEPENDENT OBLIGATION.
The obligations of each Guarantor hereunder are independent of the
obligations of any other Guarantor or the Borrower, and a separate action or
actions may be brought and prosecuted against each Guarantor whether or not
action is brought against any other Guarantor or the Borrower and whether or not
any other Guarantor or the Borrower is joined in any such action or actions.
SECTION 10.5 AUTHORIZATION.
Each of the Guarantors authorizes the Administrative Agent, each Lender and
each Hedging Agreement Provider without notice or demand (except as shall be
required by applicable statute and cannot be waived), and without affecting or
impairing its liability hereunder, from time to time to (a) renew, compromise,
extend, increase, accelerate or otherwise change the time for payment of, or
otherwise change the terms of the Credit Party Obligations or any part thereof
in accordance with this Agreement and any Secured Hedging Agreement, as
applicable, including any increase or decrease of the rate of interest thereon,
(b) take and hold security from any Guarantor or any other party for the payment
of this Guaranty or the Credit Party Obligations and exchange, enforce waive and
release any such security, (c) apply such security and direct the order or
manner of sale thereof as the Administrative Agent and the Lenders in their
discretion may determine and (d) release or substitute any one or more
endorsers, Guarantors, the Borrower or other obligors.
SECTION 10.6 RELIANCE.
It is not necessary for the Administrative Agent, the Lenders or any
Hedging Agreement Provider to inquire into the capacity or powers of the
Borrower or the officers, directors, members, partners or agents acting or
purporting to act on its behalf, and any Credit Party Obligations made or
created in reliance upon the professed exercise of such powers shall be
guaranteed hereunder.
117
SECTION 10.7 WAIVER.
(a) Each of the Guarantors waives any right (except as shall be
required by applicable statute and cannot be waived) to require the
Administrative Agent, any Lender or any Hedging Agreement Provider to (i)
proceed against the Borrower, any other guarantor or any other party, (ii)
proceed against or exhaust any security held from the Borrower, any other
guarantor or any other party, or (iii) pursue any other remedy in the
Administrative Agent's, any Lender's or any Hedging Agreement Provider's
power whatsoever. Each of the Guarantors waives any defense based on or
arising out of any defense of the Borrower, any other guarantor or any
other party other than payment in full of the Credit Party Obligations
(other than contingent indemnity obligations), including without limitation
any defense based on or arising out of the disability of the Borrower, any
other guarantor or any other party, or the unenforceability of the Credit
Party Obligations or any part thereof from any cause, or the cessation from
any cause of the liability of the Borrower other than payment in full of
the Credit Party Obligations. The Administrative Agent may, at its
election, foreclose on any security held by the Administrative Agent by one
or more judicial or nonjudicial sales (to the extent such sale is permitted
by applicable law), or exercise any other right or remedy the
Administrative Agent or any Lender may have against the Borrower or any
other party, or any security, without affecting or impairing in any way the
liability of any Guarantor hereunder except to the extent the Credit Party
Obligations have been paid in full and the Commitments have been
terminated. Each of the Guarantors waives any defense arising out of any
such election by the Administrative Agent or any of the Lenders, even
though such election operates to impair or extinguish any right of
reimbursement or subrogation or other right or remedy of the Guarantors
against the Borrower or any other party or any security.
(b) Each of the Guarantors waives all presentments, demands for
performance, protests and notices, including without limitation notices of
nonperformance, notice of protest, notices of dishonor, notices of
acceptance of this Guaranty, and notices of the existence, creation or
incurring of new or additional Credit Party Obligations. Each Guarantor
assumes all responsibility for being and keeping itself informed of the
Borrower's financial condition and assets, and of all other circumstances
bearing upon the risk of nonpayment of the Credit Party Obligations and the
nature, scope and extent of the risks which such Guarantor assumes and
incurs hereunder, and agrees that neither the Administrative Agent nor any
Lender shall have any duty to advise such Guarantor of information known to
it regarding such circumstances or risks.
(c) Each of the Guarantors hereby agrees it will not exercise any
rights of subrogation which it may at any time otherwise have as a result
of this Guaranty (whether contractual, under Section 509 of the U.S.
Bankruptcy Code, or otherwise) to the claims of the Lenders or any Hedging
Agreement Provider against the Borrower or any other guarantor of the
Credit Party Obligations of the Borrower owing to the Lenders or such
Hedging Agreement Provider (collectively, the "Other Parties") and all
contractual, statutory or common law rights of reimbursement, contribution
or indemnity from any Other Party which it may at any time otherwise have
as a result of this Guaranty until such time as the Credit Party
Obligations shall have been paid in full and the
118
Commitments have been terminated. Each of the Guarantors hereby further
agrees not to exercise any right to enforce any other remedy which the
Administrative Agent, the Lenders or any Hedging Agreement Provider now
have or may hereafter have against any Other Party, any endorser or any
other guarantor of all or any part of the Credit Party Obligations of the
Borrower and any benefit of, and any right to participate in, any security
or collateral given to or for the benefit of the Lenders and/or the Hedging
Agreement Providers to secure payment of the Credit Party Obligations of
the Borrower until such time as the Credit Party Obligations (other than
contingent indemnity obligations) shall have been paid in full and the
Commitments have been terminated.
SECTION 10.8 LIMITATION ON ENFORCEMENT.
The Lenders and the Hedging Agreement Providers agree that this Guaranty
may be enforced only by the action of the Administrative Agent acting upon the
instructions of the Required Lenders or such Hedging Agreement Provider (only
with respect to obligations under the applicable Secured Hedging Agreement) and
that no Lender or Hedging Agreement Provider shall have any right individually
to seek to enforce or to enforce this Guaranty, it being understood and agreed
that such rights and remedies may be exercised by the Administrative Agent for
the benefit of the Lenders under the terms of this Agreement and for the benefit
of any Hedging Agreement Provider under any Secured Hedging Agreement. The
Lenders and the Hedging Agreement Providers further agree that this Guaranty may
not be enforced against any director, officer, employee or stockholder of the
Guarantors.
SECTION 10.9 CONFIRMATION OF PAYMENT.
The Administrative Agent and the Lenders will, upon request after payment
of the Credit Party Obligations which are the subject of this Guaranty and
termination of the Commitments relating thereto, confirm to the Borrower, the
Guarantors or any other Person that such indebtedness and obligations have been
paid and the Commitments relating thereto terminated, subject to the provisions
of Section 10.2.
[Signature Pages Follow]
119
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by its proper and duly authorized officers as of the
day and year first above written.
BORROWER: ARMOR HOLDINGS, INC.
By: /s/ Xxxxxx Xxxxxxxxx
------------------------------------
Name: Xxxxxx Xxxxxxxxx
Title: Corporate Controller, Treasurer
and Secretary
GUARANTORS: 911EP, INC.
AHI PROPERTIES I, LLC
ARMOR ACCESSORIES, INC.
ARMOR BRANDS, INC.
ARMORGROUP SERVICES, LLC
ARMOR HOLDINGS GP, LLC
ARMOR HOLDINGS LP, LLC
ARMOR HOLDINGS FORENSICS, L.L.C.
ARMOR HOLDINGS PRODUCTS, L.L.C.
ARMOR HOLDINGS PROPERTIES, INC.
ARMOR HOLDINGS MOBILE
SECURITY, L.L.C.
ARMOR SAFETY PRODUCTS COMPANY
CASCO INTERNATIONAL, INC.
CDR INTERNATIONAL, INC.
DEFENSE TECHNOLOGY CORPORATION
OF AMERICA
IDENTICATOR, LLC
MONADNOCK LIFETIME PRODUCTS, INC.,
a Delaware corporation
MONADNOCK LIFETIME PRODUCTS, INC.,
a New Hampshire corporation
MONADNOCK POLICE TRAINING
COUNCIL, INC.
ODV HOLDINGS CORP.
NEW TECHNOLOGIES ARMOR, INC.
RAMTECH DEVELOPMENT CORP.
SAFARILAND GOVERNMENT SALES, INC.
SAFARI LAND LTD., INC.
Each of the above
By: /s/ Xxxxxx Xxxxxxxxx
------------------------------------
Name: Xxxxxx Xxxxxxxxx
Title: Vice President
GUARANTORS (CONTINUED): X'XXXX-XXXX & XXXXXXXXXX ARMORING
COMPANY, L.L.C.
PRO-TECH ARMORED PRODUCTS OF
MASSACHUSETTS, INC.
THE CENTIGON COMPANY, LLC
CENTIGON SALES & MARKETING, LLC
CENTIGON USA, LLC
HATCH IMPORTS, INC.
ARMOR HOLDINGS INFORMATION
TECHNOLOGY, L.L.C.
THE SPECIALTY GROUP, INC.
SPECIALTY PLASTIC PRODUCTS OF
DELAWARE, INC.
SPECIALTY DEFENSE SYSTEMS OF
DELAWARE, INC.
MT. XXXX SPECIALTY, INC.
PENN FIBRE & SPECIALTY COMPANY OF
DELAWARE, INC.
PFS SALES COMPANY
SPECIALTY DEFENSE SYSTEMS OF
KENTUCKY, INC.
SPECIALTY DEFENSE SYSTEMS OF
NEVADA, INC.
SPECIALTY DEFENSE SYSTEMS OF
PENNSYLVANIA, INC.
SPECIALTY DEFENSE SYSTEMS OF
TENNESSEE, INC.
SPECIALTY MACHINERY, INC.
BIANCHI INTERNATIONAL
ACCUCASE, LLC
ARMOR HOLDINGS GOVERNMENT
RELATIONS, LLC
SECOND CHANCE ARMOR, INC.
Each of the above
By: /s/ Xxxxxx Xxxxxxxxx
------------------------------------
Name: Xxxxxx Xxxxxxxxx
Title: Vice President
GUARANTORS (CONTINUED): OAK BRANCH, LLC
By: /s/ Xxxxxx Xxxxxxxxx
------------------------------------
Name: Xxxxxx Xxxxxxxxx
Title: President and Treasurer
NAP PROPERTIES, LTD., A CALIFORNIA
LIMITED PARTNERSHIP
By: NAP PROPERTY MANAGERS LLC, its
General Partner
By: ARMOR HOLDINGS PROPERTIES, INC.,
its Managing Member
By: /s/ Xxxxxx Xxxxxxxxx
------------------------------------
Name: Xxxxxx Xxxxxxxxx
Title: Vice President
NAP PROPERTY MANAGERS LLC
By: ARMOR HOLDINGS PROPERTIES, INC.,
its Managing Member
By: /s/ Xxxxxx Xxxxxxxxx
------------------------------------
Name: Xxxxxx Xxxxxxxxx
Title: Vice President
ARMOR HOLDINGS PAYROLL SERVICES, LLC
By: /s/ Xxxxxx Xxxxxxxxx
------------------------------------
Name: Xxxxxx Xxxxxxxxx
Title: Manager
XXXXXXX & XXXXXXXXX TACTICAL
VEHICLE SYSTEMS, LP
By: XXXXXXX & XXXXXXXXX TVS, INC.,
its General Partner
By: /s/ Xxxxxx Xxxxxxxxx
------------------------------------
Name: Xxxxxx Xxxxxxxxx
Title: Vice President
GUARANTORS (CONTINUED): SIMULA, INC.
SIMULA AEROSPACE & DEFENSE
GROUP, INC.
SIMULA POLYMER SYSTEMS, INC.
SIMULA TECHNOLOGIES, INC.
INTERNATIONAL CENTER FOR SAFETY
EDUCATION, INC.
ARMOR HOLDINGS AEROSPACE &
DEFENSE, INC.
Each of the above
By: /s/ Xxxxx X. Xxxxx
------------------------------------
Name: Xxxxx Xxxxx
Title: Secretary and Treasurer
ARMOR HOLDINGS AIRCRAFT, LLC
By: /s/ Xxxxxx Xxxxxxxxx
------------------------------------
Name: Xxxxxx Xxxxxxxxx
Title: President
XXXXXXX & XXXXXXXXX SERVICES, INC.
EXTENDED REACH LOGISTICS, INC.
XXXXXXX & XXXXXXXXX FMTV
INTERNATIONAL, INC.
S&S TRUST
SIERRA DETROIT DIESEL XXXXXXX, INC.
XXXXXXX & XXXXXXXXX TVS, INC.
XXXXXXX & XXXXXXXXX VEHICLE
SERVICES, INC.
XXXXXXX & XXXXXXXXX HOLDINGS, INC.
TVS HOLDINGS, INC.
TVS HOLDINGS, LLC
Each of the above
By: /s/ Xxxxxx Xxxxxxxxx
------------------------------------
Name: Xxxxxx Xxxxxxxxx
Title: Vice President
ADMINISTRATIVE AGENT
AND LENDERS: WACHOVIA BANK, NATIONAL
ASSOCIATION,
as Administrative Agent and as a Lender
By: /s/ Xxxxx Xxxxxxx
------------------------------------
Name: Xxxxx Xxxxxxx
Title: Managing Director
Bank of America, N.A.
as a Lender
By: /s/ Xxxxxxx X. Xxxxx
------------------------------------
Name: Xxxxxxx X. Xxxxx
Title: Vice President
JPMorgan Chase Bank, N.A.
as a Lender
By: /s/ Xxxxxx X. Xxxxxxxx
------------------------------------
Name: Xxxxxx X. Xxxxxxxx
Title: Vice President
KeyBank, NA
as a Lender
By: /s/ Xxxxx X. Fender
------------------------------------
Name: Xxxxx X. Fender
Title: Senior Vice President
SunTrust Bank
as a Lender
By: /s/ Xxxxx X. Xxxxx
------------------------------------
Name: Xxxxx X. Xxxxx
Title: Vice President
CALYON NEW YORK BRANCH
as a Lender
By: /s/ Xxxxx Xxxxxx
------------------------------------
Name: Xxxxx Xxxxxx
Title: Managing Director
By: /s/ Xxxxxx Xxxxxxxx
------------------------------------
Name: Xxxxxx Xxxxxxxx
Title: Director
XXXXXX X.X.
as a Lender
By: /s/ Xxxxxxx XxXxxxxxx
------------------------------------
Name: Xxxxxxx XxXxxxxxx
Title: Managing Director
LASALLE BANK, NATIONAL ASSOCIATION
as a Lender
By: /s/ Xxxx X. Xxxxxx
------------------------------------
Name: Xxxx X Xxxxxx
Title: Vice President
MIZUHO CORPORATE BANK, LTD.
as a Lender
By: /s/ Xxxxxxx Xxxx
------------------------------------
Name: Xxxxxxx Xxxx
Title: Senior Vice President and
Team Leader
NATIONAL CITY BANK
as a Lender
By: /s/ Xxxx X. Xxxxx
------------------------------------
Name: Xxxx X. Xxxxx
Title: Vice President
Xxxxx Fargo Bank, N.A.
as a Lender
By: /s/ Xxxxx X. Matter
------------------------------------
Name: Xxxxx X. Matter
Title: Regional Vice President
General Electric Capital Corporation
as a Lender
By: /s/ Xxxxx X. Xxxxxxx
------------------------------------
Name: Xxxxx X. Xxxxxxx
Title: Duly Authorized Signatory
BAYERISCHE LANDESBANK, acting through
its New York Branch, as a Lender
By: /s/ Xxxxxx Xxxxxxxx
------------------------------------
Name: Xxxxxx Xxxxxxxx
Title: Senior Vice President
By: /s/ Xxxxxx XxXxxxx
------------------------------------
Name: Xxxxxx XxXxxxx
Title: First Vice President
Citibank NA
as a Lender
By: /s/ Xxxxx X. Xxxxxxxx
------------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Vice President
Union Bank of California, N.A.
as a Lender
By: /s/ Xxxxxxx Xxxxxxx
------------------------------------
Name: Xxxxxxx Xxxxxxx
Title: Vice President
US Bank N.A.
as a Lender
By: /s/ Xxxxxxx XxXxxx
------------------------------------
Name: Xxxxxxx XxXxxx
Title: Vice President
NORTHFORK BUSINESS CAPITAL CORPORATION
as a Lender
By: /s/ Xxxxx Xxxxxxxxxx
------------------------------------
Name: Xxxxx Xxxxxxxxxx
Title: Senior VP
Credit Industriel et Commercial
as a Lender
By: /s/ Xxxxx X'Xxxxx /s/ Xxxxxxx Xxxx
----------------- ----------------
Name: Xxxxx X'Xxxxx Xxxxxxx Xxxx
Title: Vice President Vice President
Branch Banking and Trust Company
as a Lender
By: /s/ C. Xxxxxxx Xxxxxxxx
------------------------------------
Name: C. Xxxxxxx Xxxxxxxx, SVP
Title: Regional Corporate Banker
THE BANK OF NEW YORK
as a Lender
By: /s/ J. Xxxxx Xxxxxx, Jr
------------------------------------
Name: J. Xxxxx Xxxxxx, Jr.
Title: Vice President
BANK OF TOKYO-MITSUBISHI UFJ
TRUST COMPANY
as a Lender
By: /s/ Xxxx Xxxxxx
------------------------------------
Name: Xxxx Xxxxxx
Title: Vice President
CAROLINA FIRST BANK,
as a Lender
By: /s/ Xxxxx X. Short
------------------------------------
Name: Xxxxx X. Short
Title: Senior Vice President
First Tennessee Bank,
National Association
as a Lender
By: /s/ Xxxx X. Xxx
------------------------------------
Name: Xxxx X. Xxx
Title: Executive Vice President
Regions Bank
as a Lender
By: /s/ Xxxxxxx Xxxxxx
------------------------------------
Name: Xxxxxxx Xxxxxx
Title: Group Senior Vice President
United Overseas Bank Limited,
New York Agency
as a Lender
By: /s/ Xxxx, Xxxxx Yew
------------------------------------
Name: Xxxx, Xxxxx Yew
Title: FVP & General Manager
By: /s/ Xxxxx Xxxxx
------------------------------------
Name: Xxxxx Xxxxx
Title: AVP
Comerica Bank
as a Lender
By: /s/ Xxxxxx X. Xxxxxx, Xx.
------------------------------------
Name: Xxxxxx X. Xxxxxx, Xx.
Title: Vice President
Allied Irish Banks, plc
as a Lender
By: /s/ Xxxxxx X. Xxxxxxxxx
------------------------------------
Name: Xxxxxx X. Xxxxxxxxx
Title: Vice President
By: /s/ Xxxxxxxx Xxxxxxx
------------------------------------
Name: Xxxxxxxx Xxxxxxx
Title: Senior Vice President
DZ BANK AG Deutsche Bank Zentrale-Genossenschaftsbank Frankfurt am Main
as a Lender
By: /s/ Xxxxxxx X. Xxxxxxx
---------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Vice President
By: /s/ Bernd Xxxxxx Xxxxxx
---------------------------------
Name: Bernd Xxxxxx Xxxxxx
Title: Senior Vice President
PNC BANK, NATIONAL ASSOCIATION,
as a Lender
By: /s/ Xxxxxxx X. Xxxxx
------------------------------------
Name: Xxxxxxx X. Xxxxx
Title: Vice President
