AMENDED AND RESTATED CREDIT AGREEMENT dated as of February 3, 2006, among METALDYNE CORPORATION, METALDYNE COMPANY LLC, The Foreign Subsidiary Borrowers Party Hereto, The Lenders Party Hereto, JPMORGAN CHASE BANK, as Administrative Agent and...
Exhibit
10.1
AMENDED
AND RESTATED CREDIT AGREEMENT
dated
as
of
February
3, 2006,
among
METALDYNE
CORPORATION,
METALDYNE
COMPANY LLC,
The
Foreign Subsidiary Borrowers Party Hereto,
The
Lenders Party Hereto,
JPMORGAN
CHASE BANK,
as
Administrative Agent and Collateral Agent
CREDIT
SUISSE FIRST BOSTON,
as
Syndication Agent
COMERICA
BANK,
as
Documentation Agent
FIRST
UNION NATIONAL BANK,
as
Documentation Agent
NATIONAL
CITY BANK,
as
Documentation Agent
and
BANK
ONE,
NA,
as
Documentation Agent
___________________________
X.X.
XXXXXX SECURITIES INC.,
and
CREDIT
SUISSE
as
Joint
Bookrunners and Joint Lead Arrangers
TABLE
OF
CONTENTS
Page
ARTICLE
I
Definitions
SECTION
1.01.
|
Defined
Terms
|
1
|
SECTION
1.02.
|
Classification
of Loans and Borrowings
|
44
|
SECTION
1.03.
|
Terms
Generally
|
44
|
SECTION
1.04.
|
Accounting
Terms; GAAP
|
44
|
SECTION
1.05.
|
Exchange
Rates
|
45
|
SECTION
1.06.
|
Redenomination
of Certain Foreign Currencies
|
45
|
ARTICLE
II
The
Credits
SECTION
2.01.
|
Commitments
|
46
|
SECTION
2.02.
|
Loans
and Borrowings
|
46
|
SECTION
2.03.
|
Requests
for Borrowings
|
47
|
SECTION
2.04.
|
Swingline
Loans
|
48
|
SECTION
2.05.
|
Letters
of Credit
|
49
|
SECTION
2.06.
|
Funding
of Borrowings
|
55
|
SECTION
2.07.
|
Interest
Elections
|
55
|
SECTION
2.08.
|
Termination
and Reduction of Commitments
|
57
|
SECTION
2.09.
|
Repayment of
Loans; Evidence of Debt
|
58
|
SECTION
2.10.
|
Amortization
of Term Loans
|
59
|
SECTION
2.11.
|
Prepayment
of Loans
|
60
|
SECTION
2.12.
|
Fees
|
62
|
SECTION
2.13.
|
Interest
|
63
|
SECTION
2.14.
|
Alternate
Rate of Interest
|
64
|
SECTION
2.15.
|
Increased
Costs
|
64
|
SECTION
2.16.
|
Break
Funding Payments
|
65
|
SECTION
2.17.
|
Taxes
|
66
|
SECTION
2.18.
|
Payments
Generally; Pro Rata Treatment; Sharing of Set-offs
|
68
|
SECTION
2.19.
|
Mitigation
Obligations; Replacement of Lenders
|
70
|
SECTION
2.20.
|
Additional
Reserve Costs
|
70
|
SECTION
2.21.
|
Designation
of Foreign Subsidiary Borrowers
|
71
|
SECTION
2.22.
|
Foreign
Subsidiary Borrower Costs
|
71
|
ARTICLE
III
Representations
and Warranties
SECTION
3.01.
|
Organization;
Powers
|
72
|
SECTION
3.02.
|
Authorization;
Enforceability
|
72
|
SECTION
3.03.
|
Governmental
Approvals; No Conflicts
|
73
|
SECTION
3.04.
|
Financial
Condition; No Material Adverse Change
|
73
|
SECTION
3.05.
|
Properties
|
74
|
SECTION
3.06.
|
Litigation
and Environmental Matters
|
74
|
SECTION
3.07.
|
Compliance
with Laws and Agreements
|
75
|
SECTION
3.08.
|
Investment
and Holding Company Status
|
75
|
SECTION
3.09.
|
Taxes
|
75
|
SECTION
3.10.
|
ERISA
|
75
|
SECTION
3.11.
|
Disclosure
|
75
|
SECTION
3.12.
|
Subsidiaries
|
76
|
SECTION
3.13.
|
Insurance
|
76
|
SECTION
3.14.
|
Labor
Matters
|
76
|
SECTION
3.15.
|
Solvency
|
76
|
SECTION
3.16.
|
Senior
Indebtedness
|
76
|
SECTION
3.17.
|
Security
Documents
|
77
|
SECTION
3.18.
|
Federal
Reserve Regulations
|
78
|
ARTICLE
IV
Conditions
SECTION
4.01.
|
[intentionally
omitted].
|
78
|
SECTION
4.02.
|
Each
Credit Event
|
78
|
SECTION
4.03.
|
Credit
Events Relating to Foreign Subsidiary Borrowers
|
79
|
ARTICLE
V
Affirmative
Covenants
SECTION
5.01.
|
Financial
Statements and Other Information
|
79
|
SECTION
5.02.
|
Notices
of Material Events
|
81
|
SECTION
5.03.
|
Information
Regarding Collateral
|
82
|
SECTION
5.04.
|
Existence;
Conduct of Business
|
83
|
SECTION
5.05.
|
Payment
of Obligations
|
83
|
SECTION
5.06.
|
Maintenance
of Properties
|
83
|
SECTION
5.07.
|
Insurance
|
83
|
SECTION
5.08.
|
Casualty
and Condemnation
|
84
|
SECTION
5.09.
|
Books
and Records; Inspection and Audit Rights
|
84
|
SECTION
5.10.
|
Compliance
with Laws
|
84
|
-ii-
SECTION
5.11.
|
Use
of Proceeds and Letters of Credit
|
84
|
SECTION
5.12.
|
Additional
Subsidiaries
|
85
|
SECTION
5.13.
|
Further
Assurances
|
85
|
SECTION
5.14.
|
[intentionally
omitted].
|
85
|
SECTION
5.15.
|
Available
Funds; Additional Equity
|
85
|
SECTION
5.16.
|
North
American Forging Sale
|
92
|
ARTICLE
VI
Negative
Covenants
SECTION
6.01.
|
Indebtedness;
Certain Equity Securities
|
86
|
SECTION
6.02.
|
Liens
|
89
|
SECTION
6.03.
|
Fundamental
Changes
|
90
|
SECTION
6.04.
|
Investments,
Loans, Advances, Guarantees and Acquisitions
|
92
|
SECTION
6.05.
|
Asset
Sales
|
93
|
SECTION
6.06.
|
Sale
and Leaseback Transactions
|
95
|
SECTION
6.07.
|
Hedging
Agreements
|
95
|
SECTION
6.08.
|
Restricted
Payments; Certain Payments of Indebtedness
|
95
|
SECTION
6.09.
|
Transactions
with Affiliates
|
97
|
SECTION
6.10.
|
Restrictive
Agreements
|
98
|
SECTION
6.11.
|
Amendment
of Material Documents
|
99
|
SECTION
6.12.
|
Convertible
Debentures
|
99
|
SECTION
6.13.
|
Interest
Expense Coverage Ratio
|
99
|
SECTION
6.14.
|
Leverage
Ratio
|
100
|
SECTION
6.15.
|
Capital
Expenditures
|
100
|
SECTION
6.16.
|
Consolidated
Lease Expense
|
101
|
ARTICLE
VII
Events
of
Default
ARTICLE
VIII
The
Administrative Agent
ARTICLE
IX
Collection
Allocation Mechanism
SECTION
9.01.
|
Implementation
of CAM
|
106
|
-iii-
SECTION
9.02.
|
Letters
of Credit
|
107
|
ARTICLE
X
Miscellaneous
SECTION
10.01.
|
Notices
|
109
|
SECTION
10.02.
|
Waivers;
Amendments
|
109
|
SECTION
10.03.
|
Expenses;
Indemnity; Damage Waiver
|
111
|
SECTION
10.04.
|
Successors
and Assigns
|
113
|
SECTION
10.05.
|
Survival
|
116
|
SECTION
10.06.
|
Counterparts;
Integration; Effectiveness
|
116
|
SECTION
10.07.
|
Severability
|
116
|
SECTION
10.08.
|
Right
of Setoff
|
116
|
SECTION
10.09.
|
Governing
Law; Jurisdiction; Consent to Service of Process
|
117
|
SECTION
10.10.
|
WAIVER
OF JURY TRIAL
|
117
|
SECTION
10.11.
|
Headings
|
118
|
SECTION
10.12.
|
Confidentiality
|
118
|
SECTION
10.13.
|
Interest
Rate Limitation
|
119
|
SECTION
10.14.
|
Judgment
Currency
|
119
|
SECTION
10.15.
|
Effectiveness
of the Amendment and Restatement; Original Credit
Agreement
|
120
|
SCHEDULES:
Schedule 1.01(a)
|
--
Existing Letters of Credit
|
Schedule 2.01
|
--
Commitments
|
Schedule
3.12
|
--
Subsidiaries
|
Schedule
3.17(d)
|
--
Mortgage Filing Offices
|
EXHIBITS:
Exhibit A
|
--
|
Form
of Assignment and Acceptance
|
Exhibit
B
|
--
|
Form
of Debenture Account
|
Exhibit
C
|
--
|
Form
of Foreign Subsidiary Borrowing
|
|
|
Agreement
|
Exhibit D
|
--
|
Form
of Guarantee Agreement
|
Exhibit
E
|
--
|
Form
of Indemnity, Subrogation and
|
|
|
Contribution Agreement
|
Exhibit
F
|
--
|
Form
of Mortgage
|
Exhibit G
|
--
|
Form
of Pledge Agreement
|
Exhibit H
|
--
|
Form
of Security Agreement
|
Exhibit
I
|
--
|
Mandatory
Costs Rate
|
-iv-
AMENDED
AND RESTATED CREDIT AGREEMENT dated as of February 3, 2006, among METALDYNE
CORPORATION, METALDYNE COMPANY LLC, the FOREIGN SUBSIDIARY BORROWERS party
hereto, the LENDERS party hereto, JPMORGAN CHASE BANK, as Administrative Agent
and Collateral Agent, FIRST UNION NATIONAL BANK, as Documentation Agent,
CREDIT SUISSE, as Syndication Agent, COMERICA BANK, as Documentation Agent,
NATIONAL CITY BANK, as Documentation Agent and BANK ONE, NA, as Documentation
Agent.
The
Parent Borrower desires to amend and restate the terms and provisions of the
Credit Agreement dated as of November 28, 2000, as amended and restated as
of
June 20, 2002 and as further amended as of July 15, 2003, May 26,
2004, September 29, 2004, December 21, 2004 and May 16, 2005 (the
"Original
Credit Agreement"),
among
Holdings, the Parent Borrower, the existing lenders thereunder and JPMorgan
Chase Bank, as the administrative agent in the form hereof.
The
Lenders are willing to amend and restate the Original Credit Agreement and
are
willing to extend credit to the Parent Borrower and the Foreign Subsidiary
Borrowers, in each case upon the terms and subject to the conditions set forth
herein and in the Amendment and Restatement Agreement. Accordingly, the parties
hereto agree as follows:
ARTICLE
I
Definitions
SECTION
1.01. Defined
Terms.
As used
in this Agreement, the following terms have the meanings specified
below:
"ABR",
when
used in reference to any Loan or Borrowing, refers to whether such Loan, or
the
Loans comprising such Borrowing, are bearing interest at a rate determined
by
reference to the Alternate Base Rate.
"Acquired
Assets"
means
(a) with respect to any fiscal year, the consolidated tangible assets
acquired pursuant to a Permitted Acquisition during such fiscal year determined
in accordance with GAAP (the "Specified
Amount"),
provided
that if
such Permitted Acquisition is not consummated during the first quarter of such
fiscal year, Acquired Assets shall be determined for purposes of this
clause (a) by multiplying the Specified Amount by (i) .75 if such
Permitted Acquisition is consummated during the second quarter of such fiscal
year, (ii) .50 if such Permitted Acquisition is consummated during the
third quarter of such fiscal year and (iii) .25 if such Permitted
Acquisition is consummated during the fourth quarter of such fiscal year and
(b) with respect to any fiscal year thereafter, the Specified
Amount.
2
"Acquisition
Lease Financing"
means
any sale or transfer by the Parent Borrower or any Subsidiary of any Specified
Acquired Property that is rented or leased by the Parent Borrower or such
Subsidiary so long as (a) the proceeds from such transaction consist solely
of cash, (b) such transaction is consummated within 90 days after the
completion of the applicable Permitted Acquisition and (c) the proceeds
from such transaction are applied as contemplated by
Section 2.11(e).
"Adjusted
LIBO Rate"
means,
with respect to any Eurocurrency Borrowing for any Interest Period, an interest
rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal
to
(a) the LIBO Rate for such Interest Period multiplied by (b) the
Statutory Reserve Rate.
"Administrative
Agent"
means
Chase, in its capacity as administrative agent for the Lenders hereunder. With
respect to Foreign Currency Borrowings, the Administrative Agent may be an
Affiliate of Chase for purposes of administering such Borrowings, and all
references herein to the term "Administrative Agent" shall be deemed to refer
to
the Administrative Agent in respect of the applicable Borrowing or to all
Administrative Agents, as the context requires.
"Administrative
Questionnaire"
means
an Administrative Questionnaire in a form supplied by the Administrative
Agent.
"Affiliate"
means,
with respect to a specified Person, another Person that directly, or indirectly
through one or more intermediaries, Controls or is Controlled by or is under
common Control with the Person specified.
"Alternate
Base Rate"
means,
for any day, a rate per annum equal to the greatest of (a) the Prime Rate
in effect on such day, (b) the Base CD Rate in effect on such day
plus 1% and (c) the Federal Funds Effective Rate in effect on such day
plus ½ of 1%. Any change in the Alternate Base Rate due to a change in the
Prime Rate, the Base CD Rate or the Federal Funds Effective Rate shall be
effective from and including the effective date of such change in the Prime
Rate, the Base CD Rate or the Federal Funds Effective Rate,
respectively.
"Amendment
and Restatement Agreement"
means
the Amendment and Restatement Agreement dated as of February 3, 2006, among
Holdings, the Parent Borrower, the Foreign Subsidiary Borrowers party thereto,
the Lenders party thereto and the Administrative Agent.
"Amendment
No. 1"
means
the Amendment No. 1 to this Agreement dated as of July 15, 2003, among
Holdings, the Borrowers listed on Schedule 1 thereto and the Lenders party
thereto.
"Amendment
Date"
means
the Amendment Date as defined in Amendment No. 1.
"Applicable
Percentage"
means,
with respect to any Revolving Lender, the percentage of the total Revolving
Commitments represented by such Lender's Revolving
3
Commitment.
If the Revolving Commitments have terminated or expired, the Applicable
Percentages shall be determined based upon the Revolving Commitments most
recently in effect, giving effect to any assignments.
"Applicable
Rate"
means,
for any day (a) with respect to any Tranche D Term Loan, (i) 3.75% per
annum (or, if the Leverage Ratio is less than or equal to 4.25 to 1.00, 3.50%
per annum) in the case of an ABR Loan, or (ii) 4.50% per annum (or, if the
Leverage Ratio is less than or equal to 4.25 to 1.00, 4.25% per annum) in the
case of a Eurocurrency Loan, and (b) with respect to any ABR Loan or
Eurocurrency Loan that is a Revolving Loan, or with respect to the commitment
fees payable hereunder, as the case may be, the applicable rate per annum set
forth below under the caption "ABR Spread", "Eurocurrency Spread" or "Commitment
Fee Rate", as the case may be, based upon the Leverage Ratio as of the most
recent determination date:
Leverage
Ratio:
|
ABR
Spread
|
Eurocurrency
Spread
|
Commitment
Fee
Rate
|
Category 1
Greater
than 4.25 to 1.00
|
3.50%
|
4.50%
|
1.00%
|
Category 2
Less
than or equal to 4.25 to 1.00 but greater than 3.75 to 1.00
|
3.25%
|
4.25%
|
1.00%
|
Category
3
Less
than or equal to 3.75 to 1.00 but greater than 3.50 to
1.00
|
2.75%
|
3.75%
|
1.00%
|
Category
4
Less
than or equal to 3.50 to 1.00 but greater than 3.00 to 1.00
|
2.25%
|
3.25%
|
1.00%
|
Category
5
Less
than or equal to 3.00 to 1.00
|
2.00%
|
3.00%
|
1.00%
|
For
purposes of the foregoing, (i) the Leverage Ratio shall be determined as of
the
end of each fiscal quarter of the Parent Borrower's fiscal year based upon
Holdings' consolidated financial statements delivered pursuant to Section
5.01(a) or (b) and (ii) each change in the Applicable Rate resulting from a
change in the Leverage Ratio shall be effective during the period commencing
on
and including the date of delivery to the Administrative Agent of such
consolidated financial statements indicating such change and ending on the
date
immediately preceding the effective date of the next such change; provided
that the
Leverage Ratio shall be deemed to be in Category 1 (A) at any time that an
Event
of Default has occurred and is continuing or (B) if the Parent
Borrower
4
fails
to
deliver the consolidated financial statements required to be delivered by it
pursuant to Section 5.01(a) or (b), during the period from the expiration of
the
time for delivery thereof until such consolidated financial statements are
delivered.
"Assessment
Rate"
means,
for any day, the annual assessment rate in effect on such day that is payable
by
a member of the Bank Insurance Fund classified as "well-capitalized" and within
supervisory subgroup "B" (or a comparable successor risk classification) within
the meaning of 12 C.F.R. Part 327 (or any successor provision) to the
Federal Deposit Insurance Corporation for insurance by such Corporation of
time
deposits made in dollars at the offices of such member in the
United States; provided
that if,
as a result of any change in any law, rule or regulation, it is no longer
possible to determine the Assessment Rate as aforesaid, then the Assessment
Rate
shall be such annual rate as shall be determined by the Administrative Agent
to
be representative of the cost of such insurance to the Lenders.
"Asset
Dropdown"
means
(a) the contribution by Holdings to the Parent Borrower of all of its
assets (other than Saturn, the Saturn Subsidiary, the Specified Assets and
the
Specified Cash and other assets approved by the Administrative Agent) and
(b) immediately after completion of such contribution, the execution of the
Supplemental Indenture by the parties thereto.
"Assignment
and Acceptance"
means
an assignment and acceptance entered into by a Lender and an assignee (with
the
consent of any party whose consent is required by Section 10.04), and
accepted by the Administrative Agent, in the form of Exhibit A or any other
form approved by the Administrative Agent.
"Assumed
Preferred Stock"
means
any preferred stock or preferred equity interests of any Person that becomes
a
Subsidiary after the date hereof; provided
that
(a) such preferred stock or preferred equity interests exists at the time
such Person becomes a Subsidiary and is not created in contemplation of or
in
connection with such Person becoming a Subsidiary and (b) the aggregate
liquidation value of all such outstanding preferred stock and preferred equity
interests shall not exceed $25,000,000 at any time outstanding, less the
aggregate principal amount of Indebtedness incurred pursuant to
Section 6.01(a)(xiii).
"Available
Funds"
means
collectively, at any time, (a) the amount of unused Revolving Commitments
designated by the Parent Borrower at such time for availability to repurchase,
redeem, repay or otherwise retire Convertible Debentures pursuant to Section
5.15(b) and (b) the amount of cash in the Debenture Account at such
time.
"Available
Funds Reserve Amount"
means,
at any time, an amount equal to the aggregate face amount of all Convertible
Debentures outstanding at such time, provided
that the
Available Funds Reserve Amount shall in no event exceed
$100,000,000.
5
"Base
CD Rate"
means
the sum of (a) the Three-Month Secondary CD Rate multiplied by the
Statutory Reserve Rate plus (b) the Assessment Rate.
"Board"
means
the Board of Governors of the Federal Reserve System of the United States
of America.
"Borrowing"
means
(a) Loans of the same Class and Type, made, converted or continued on the
same date and, in the case of Eurocurrency Loans, as to which a single Interest
Period is in effect, or (b) a Swingline Loan.
"Borrowing
Request"
means a
request by the Parent Borrower or a Foreign Subsidiary Borrower, as the case
may
be, for a Borrowing in accordance with Section 2.03.
"Business
Day"
means
any day that is not a Saturday, Sunday or other day on which commercial banks
in
New York City are authorized or required by law to remain closed;
provided
that
(a) when used in connection with any Eurocurrency Loan denominated in
dollars or Sterling, the term "Business
Day"
shall
also exclude any day on which banks are not open for dealings in dollar deposits
in the London interbank market and (b) when used in connection with any
Revolving Loan denominated in Euro, the term "Business Day" shall also exclude
any day on which the TARGET payment system is not open for the settlement of
payment in Euro.
"Calculation
Date"
means
(a) each date on which a Revolving Borrowing is made and (b) the last
Business Day of each calendar month.
"CAM"
shall
mean the mechanism for the allocation and exchange of interests in the Credit
Facilities and collections thereunder established under
Article IX.
"CAM
Exchange"
shall
mean the exchange of the Lender's interests provided for in
Section 9.01.
"CAM
Exchange Date"
shall
mean the date on which (a) any event referred to in paragraph (h) or
(i) of Article VII shall occur in respect of Holdings, the Parent
Borrower or any Foreign Subsidiary Borrower or (b) an acceleration of the
maturity of the Loans pursuant to Article VII shall occur.
"CAM
Percentage"
shall
mean, as to each Lender, a fraction, expressed as a decimal, of which
(a) the numerator shall be the aggregate Dollar Equivalent (determined on
the basis of Exchange Rates prevailing on the CAM Exchange Date) of the
Specified Obligations owed to such Lender and such Lender's participation in
undrawn amounts of Letters of Credit immediately prior to the CAM Exchange
Date
and (b) the denominator shall be the aggregate Dollar Equivalent (as so
determined) of the Specified Obligations owed to all the Lenders and the
aggregate undrawn amount of outstanding Letters of Credit immediately prior
to
such CAM Exchange Date.
"Capital
Expenditures"
means,
for any period, without duplication, (a) the additions to property, plant
and equipment and other capital expenditures of Holdings, the
6
Parent
Borrower and its consolidated Subsidiaries (including the Receivables
Subsidiary) that are (or would be) set forth in a consolidated statement of
cash
flows of Holdings for such period prepared in accordance with GAAP (other than
payments made in connection with the termination of obligations in respect
of
operating leases and acquiring related real property subject to such leases
contemplated by Section 5.16) and (b) Capital Lease Obligations incurred by
Holdings, the Parent Borrower and its consolidated Subsidiaries (including
the
Receivables Subsidiary) during such period.
"Capital
Lease Obligations"
of any
Person means the obligations of such Person to pay rent or other amounts under
any lease of (or other arrangement conveying the right to use) real or personal
property, or a combination thereof, which obligations are required to be
classified and accounted for as capital leases on a balance sheet of such Person
under GAAP, and the amount of such obligations shall be the capitalized amount
thereof determined in accordance with GAAP.
"Change
in Control"
means
(a) the acquisition of ownership, directly or indirectly, beneficially or
of record, by any Person other than Holdings of any Equity Interest in the
Parent Borrower; (b) prior to the date of an IPO, either
(i) Heartland, together with its Affiliates and the HIP Co-Investors
(together with such HIP Co-Investors' Permitted Transferees (as such terms
are
defined in the Shareholder Agreement as in effect on the date hereof)), shall
cease to beneficially own, directly or indirectly, Equity Interests in Holdings
representing at least a majority of the aggregate ordinary voting power
represented by the issued and outstanding Equity Interests in Holdings,
(ii) Heartland and its Affiliates shall cease to beneficially own, directly
or indirectly, Equity Interests in Holdings representing at least 30% of each
of
the aggregate ordinary voting power represented by the issued and outstanding
Equity Interests in Holdings or (iii) any Person or group (within the
meaning of the Securities Exchange Act of 1934 and the rules of the Securities
and Exchange Commission thereunder as in effect on the date hereof) other than
Heartland and its Affiliates shall beneficially own at any time, directly or
indirectly (without giving effect, for avoidance of doubt, to shares owned
by
Heartland and its Affiliates), a greater percentage of the aggregate ordinary
voting power of Holdings than the aggregate ordinary voting power of Holdings
that is beneficially owned at such time, directly or indirectly (without giving
effect, for avoidance of doubt, to shares owned by such Person), by Heartland
and its Affiliates; (c) on or after an IPO, the acquisition of beneficial
ownership, directly or indirectly, by any Person or group (within the meaning
of
the Securities Exchange Act of 1934 and the rules of the Securities and Exchange
Commission thereunder as in effect on the date hereof) other than Heartland
and
its Affiliates, of Equity Interests representing more than 25% of either the
aggregate ordinary voting power represented by the issued and outstanding Equity
Interests in Holdings and such Person or group beneficially owns at such time,
directly or indirectly (without giving effect, for avoidance of doubt, to shares
owned by Heartland and its Affiliates), a greater percentage of the aggregate
ordinary voting power of Holdings than the aggregate ordinary voting power
of
Holdings that is beneficially owned at such time, directly or indirectly,
(without giving effect, for avoidance of doubt, to shares owned by such Person),
by Heartland and its Affiliates; (d) occupation of a majority of the seats
on
the board of directors of Holdings by Persons who were not nominated by
Heartland and its Affiliates; or (e) the occurrence of any change in
control (or similar event, however denominated) with respect to Holdings or
the
Parent Borrower under (i) any indenture or agreement in respect of Material
Indebtedness to which Holdings, the Parent Borrower or
7
any
Subsidiary is a party,(ii) any instrument governing any preferred stock of
Holdings, the Parent Borrower or any Subsidiary having a liquidation value
or
redemption value in excess of $15,000,000 or (iii) the Permitted
Receivables Financing.
"Change
in Law"
means
(a) the adoption of any law, rule or regulation after the date of this
Agreement, (b) any change in any law, rule or regulation or in the
interpretation or application thereof by any Governmental Authority after the
date of this Agreement or (c) compliance by any Lender or the Issuing Bank
(or, for purposes of Section 2.15(b), by any lending office of such Lender
or by
such Lender's or the Issuing Bank's holding company, if any) with any request,
guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this
Agreement.
"Chase"
means
JPMorgan Chase Bank.
"Class",
when
used in reference to any Loan or Borrowing, refers to whether such Loan, or
the
Loans comprising such Borrowing, are Revolving Loans, Tranche D Term Loans
or Swingline Loans and, when used in reference to any Commitment, refers to
whether such Commitment is a Revolving Commitment or Tranche D
Commitment.
"Code"
means
the Internal Revenue Code of 1986, as amended from time to time.
"Collateral"
means
any and all "Collateral", as defined in any applicable Security
Document.
"Collateral
Agent"
means
Chase, in its capacity as collateral agent for the Lenders under the Security
Documents. With respect to Foreign Currency Borrowings, the Collateral Agent
may
be an Affiliate of Chase, for purposes of administering the collateralization
of
such Borrowings, and all references herein to the term "Collateral Agent" shall
be deemed to refer to the Collateral Agent in respect of the applicable
Borrowing or to all Collateral Agents, as the context requires.
"Collateral
and Guarantee Requirement"
means
the requirement that:
(a)
the
Collateral Agent shall have received from each party thereto (other than the
Collateral Agent) either (i) a counterpart of (A) the Guarantee
Agreement, (B) the Indemnity, Subrogation and Contribution Agreement,
(C) the Pledge Agreement and (D) the Security Agreement, in each case
duly executed and delivered on behalf of such Loan Party or (ii) in the case
of
any Person that becomes a Loan Party after the Effective Date, a supplement
to
each of the Guarantee Agreement, the Indemnity, Subrogation and Contribution
Agreement, the Pledge Agreement and the Security Agreement, in each case in
the
form specified therein, duly executed and delivered on behalf of such Loan
Party;
(b)
all
outstanding Equity Interests of the Parent Borrower and each Subsidiary
(including the Receivables Subsidiary) owned by or on behalf of any
8
Loan
Party shall have been pledged pursuant to the Pledge Agreement (except that
the
Loan Parties shall not be required to pledge more than 65% of the outstanding
voting Equity Interests of any Foreign Subsidiary, it being understood that
this
exception shall not limit the application of the Foreign Security Collateral
and
Guarantee Requirement) and the Collateral Agent shall have received certificates
or other instruments representing all such Equity Interests, together with
stock
powers or other instruments of transfer with respect thereto endorsed in
blank;
(c)
all
Indebtedness of Holdings, the Parent Borrower and each Subsidiary in an
aggregate principal amount that exceeds $500,000 that is owing to any Loan
Party
shall be evidenced by a promissory note and shall have been pledged pursuant
to
the Pledge Agreement and the Collateral Agent shall have received all such
promissory notes, together with instruments of transfer with respect thereto
endorsed in blank;
(d)
all
documents and instruments, including Uniform Commercial Code financing
statements, required by law or reasonably requested by the Collateral Agent
to
be filed, registered or recorded to create the Liens intended to be created
by
the Security Agreement and the Pledge Agreement and perfect such Liens to the
extent required by, and with the priority required by, the Security Agreement
and the Pledge Agreement shall have been filed, registered or recorded or
delivered to the Collateral Agent for filing, registration or
recording;
(e)
the
Collateral Agent shall have received (i) counterparts of a Mortgage with
respect to each Mortgaged Property duly executed and delivered by the record
owner of such Mortgaged Property, (ii) a policy or policies of title insurance
issued by a nationally recognized title insurance company insuring the Lien
of
each such Mortgage as a valid first Lien on the Mortgaged Property described
therein, free of any other Liens except as expressly permitted by
Section 6.02, together with such endorsements, coinsurance and reinsurance
as the Administrative Agent or the Required Lenders may reasonably request,
and
(iii) such surveys, abstracts, appraisals, legal opinions and other documents
as
the Administrative Agent or the Required Lenders may reasonably request with
respect to any such Mortgage or Mortgaged Property; provided
that
with respect to any Mortgaged Property as to which a Mortgage was recorded
prior
to the Effective Date, the requirements of this paragraph shall be limited
to
such supplements, amendments and bring-downs as the Collateral Agent shall
reasonably request; and
(f)
each
Loan Party (other than the Foreign Subsidiary Borrowers) shall have obtained
all
consents and approvals required to be obtained by it in connection with the
execution and delivery of all Security Documents to which it is a party, the
performance of its obligations thereunder and the granting by it of the Liens
thereunder.
9
"Commitment"
means a
Revolving Commitment or Tranche D Commitment, or a combination thereof (as
the context requires).
"Compac
Event"
means
the damage to any property owned by Compac Corporation and its subsidiaries
resulting from floods occurring in August, 2000.
"Consolidated
Cash Interest Expense"
means,
for any period, the excess of (a) the sum, without duplication, of
(i) the interest expense (including imputed interest expense in respect of
Capital Lease Obligations) of Holdings, the Parent Borrower and the Subsidiaries
(including the Receivables Subsidiary) for such period, determined on a
consolidated basis in accordance with GAAP, (ii) any interest accrued during
such period in respect of Indebtedness of Holdings, the Parent Borrower or
any
Subsidiary (including the Receivables Subsidiary) that is required to be
capitalized rather than included in consolidated interest expense for such
period in accordance with GAAP, plus (iii) any cash payments made during
such period in respect of obligations referred to in clause (b)(iii) below
that were amortized or accrued in a previous period, plus
(iv) interest-equivalent costs associated with any Permitted Receivables
Financing, whether accounted for as interest expense or loss on the sale of
receivables minus (b) the sum of, without duplication, (i) interest
income of Holdings, the Parent Borrower and the Subsidiaries (including the
Receivables Subsidiary) for such period, determined on a consolidated basis
in
accordance with GAAP, (ii) to the extent included in such consolidated
interest expense for such period, noncash amounts attributable to amortization
of financing costs paid in a previous period, plus (iii) to the extent included
in such consolidated interest expense for such period, noncash amounts
attributable to amortization of debt discounts or accrued interest payable
in
kind for such period, plus (iv) to the extent included in such consolidated
interest expense for such period, all financing fees incurred in connection
with
the Transactions. For purposes of calculating Consolidated Cash Interest Expense
for each of the four-fiscal-quarter periods ending December 31, 2000,
March 31, 2001 and June 30, 2001, Consolidated Cash Interest Expense
for such four-fiscal-quarter period shall equal Consolidated Cash Interest
Expense for the period commencing October 1, 2000 and ending on
(a) December 31, 2000, multiplied by 4, (b) March 31, 2001,
multiplied by 2 and (c) June 30, 2001, multiplied by 4/3.
Notwithstanding the foregoing, the defined term "Consolidated Cash Interest
Expense" shall not include any interest expense in respect of $205,000,000
aggregate principal amount of Convertible Debentures during the 90-day period
following the consummation of the TriMas Transaction.
"Consolidated
EBITDA"
means,
for any period, Consolidated Net Income for such period plus (a) without
duplication and to the extent deducted in determining such Consolidated Net
Income, the sum of (i) consolidated interest expense for such period,
(ii) consolidated income tax expense for such period (including all single
business tax expenses imposed by state law), (iii) all amounts attributable
to depreciation and amortization for such period, (iv) any extraordinary
noncash charges for such period, (v) all management fees and other fees
paid during such period to Heartland and/or its Affiliates pursuant to the
Heartland Management Agreement to the extent permitted by Section 6.09,
(vi) all payments made during and expenses recorded in such period in
respect of the Restricted Stock Obligation and all items expensed at the
Recapitalization
10
Date
in
respect of Restricted Stock Awards, (vii) any losses incurred during such
period in connection with the sale of receivables pursuant to the Permitted
Receivables Financing, (viii) all extraordinary losses during such period,
(ix) noncash expenses during such period resulting from the grant of Equity
Interests to management and employees of Holdings, the Parent Borrower or any
of
the Subsidiaries, (x) the aggregate amount of deferred financing expenses
for such period, (xi) all other noncash expenses or losses of Holdings, the
Parent Borrower or any of the Subsidiaries for such period (excluding any such
charge that constitutes an accrual of or a reserve for cash charges for any
future period), (xii) any nonrecurring fees, expenses or charges realized
by Holdings, the Parent Borrower or any of the Subsidiaries for such period
related to any offering of Equity Interests or incurrence of Indebtedness,
(xiii) with respect to any four-fiscal-quarter period ending prior to or on
December 31, 2001, operating expense and other expense reductions and other
synergistic benefits relating to the Recapitalization Transactions, not to
exceed the applicable Excluded Amount for such period, (xiv) Excluded
Severance Charges for such period, (xv) fees and expenses in connection
with the Transactions and fees and expenses of Holdings, the Parent Borrower
and
its Subsidiaries (excluding TriMas and the subsidiaries of TriMas) in connection
with the TriMas Transaction, (xvi) any nonrecurring costs and expenses
arising from the integration of any business acquired pursuant to any Permitted
Acquisition (other than the New Castle Acquisition), (xvii) solely for
purposes of determining compliance with Section 6.14, fees paid pursuant to
Section 18 of Amendment No. 1 to the Original Credit Agreement;
provided
that the
aggregate amount of costs and expenses that may be included in Consolidated
EBITDA pursuant to this clause (xvii) during the term of this Agreement
shall not exceed $5,000,000, (xviii) for all purposes hereunder, other than
the
defined term "Applicable Rate", the New Castle Specified EBITDA, (xix) solely
for purposes of determining compliance with Section 6.14, fees paid pursuant
to
Section 14 of this Amendment No. 1, (xx) solely for purposes of
determining compliance with Section 6.13 and Section 6.14 and the use
of the defined term Senior Leverage Ratio, fees and expenses paid in connection
with the Internal Evaluation (as defined in the Waiver and Amendment No. 2
to this Agreement dated as of May 26, 2004) and as a consequence thereof,
(xxi) nonrecurring charges and expenses in an aggregate amount not to
exceed $8,000,000 related primarily to headcount reductions during the period
from and including the first day of the first fiscal quarter of 2005 to and
including the last day of the first fiscal quarter of 2006, (xxii) charges
not
to exceed in the aggregate $2,500,000 (calculated by the Parent Borrower in
its
reasonable judgment and good faith) incurred in connection with the Parent
Borrower's accelerated collection programs wound down and/or terminated after
June 30, 2004, to the extent such charges are not offset by accounts receivable
being included in, or such programs being replaced by, another financing program
of the Parent Borrower", (xxiii) any charges or losses incurred in
connection with the termination of leases and the purchase of related lease
property and (xxiv) any lease payments made during the last twelve months
with respect to operating leases terminated in accordance with Section 5.16
or otherwise and minus (b) without duplication and to the extent included
in determining such Consolidated Net Income, any extraordinary gains for such
period, all determined on a consolidated basis in accordance with GAAP. For
purposes of determining the Leverage Ratio, Senior Leverage Ratio and Senior
Secured Leverage Ratio, if the Parent Borrower or any Subsidiary has made
any
11
Permitted
Acquisition or any sale, transfer, lease or other disposition of assets outside
of the ordinary course of business permitted by Section 6.05 during the
relevant period for determining the Leverage Ratio, Senior Leverage Ratio and
Senior Secured Leverage Ratio, Consolidated EBITDA for the relevant period
shall
be calculated only for purposes of determining Leverage Ratio, Senior Leverage
Ratio and Senior Secured Leverage Ratio, after giving pro forma effect thereto,
as if such Permitted Acquisition or sale, transfer, lease or other disposition
of assets (and, in each case, any related incurrence, repayment or assumption
of
Indebtedness, with any new Indebtedness being deemed to be amortized over the
relevant period in accordance with its terms, and assuming that any Revolving
Loans borrowed in connection with such acquisition are repaid with excess cash
balances when available) had occurred on the first day of the relevant period
for determining Consolidated EBITDA. Any such pro forma calculations may include
operating and other expense reductions and other adjustments for such period
resulting from any Permitted Acquisition (other than the New Castle Acquisition,
except to the extent of any calculation of the Applicable Rate) that is being
given pro forma effect to the extent that such operating and other expense
reductions and other adjustments (a) would be permitted pursuant to
Article XI of Regulation S-X under the Securities Act of 1933 or
(b) are reasonably consistent with the purpose of Regulation S-X as
determined in good faith by the Parent Borrower in consultation with the
Administration Agent. For the purpose of calculating Consolidated EBITDA for
the
four quarter periods ending December 31, 2004, March 31, 2005,
June 30, 2005, September 30, 2005 and December 31, 2005,
Consolidated EBITDA shall be additionally increased by $1,500,000, $2,700,000,
$1,900,000, $1,300,000 and $500,000, respectively.
"Consolidated
Lease Expense"
shall
mean, for any period, all rental expenses of Holdings, the Parent Borrower
and
the Subsidiaries (including the Receivables Subsidiary) during such period
under
operating leases for real or personal property, excluding real estate taxes,
insurance costs and common area maintenance charges and net of sublease income,
other than Capitalized Lease Obligations, all as determined on a consolidated
basis in accordance with GAAP.
"Consolidated
Net Income"
means,
for any period, the net income or loss of Holdings, the Parent Borrower and
the
Subsidiaries (including the Receivables Subsidiary) for such period determined
on a consolidated basis in accordance with GAAP; provided
that
there shall be excluded (a) the income of any Person (other than the Parent
Borrower) in which any other Person (other than the Parent Borrower or any
Subsidiary or any director holding qualifying shares in compliance with
applicable law) owns an Equity Interest, except to the extent of the amount
of
dividends or other distributions actually paid to the Parent Borrower or any
of
the Subsidiaries during such period, and (b) the income or loss of any
Person accrued prior to the date it becomes a Subsidiary or is merged into
or
consolidated with the Parent Borrower or any Subsidiary or the date that such
Person's assets are acquired by the Parent Borrower or any
Subsidiary.
"Control"
means
the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether
through
12
the
ability to exercise voting power, by contract or otherwise. "Controlling"
and
"Controlled"
have
meanings correlative thereto.
"Conversion
Right"
means
the right of the Debenture Holders after the Merger to convert their Convertible
Debentures into the amount of cash that the Debenture Holders would have
received if such Convertible Debentures had been converted into common stock
of
Holdings immediately prior to the Merger, as provided in Section 3.06 of
the Convertible Debentures Indenture.
"Convertible
Debentures"
means
the 4½% Convertible Subordinated Debentures of Holdings issued under the
Convertible Debentures Indenture in an aggregate principal amount not greater
than $305,000,000, which after the Asset Dropdown became joint and several
obligations of the Parent Borrower and Holdings.
"Convertible
Debentures Indenture"
means
the Indenture dated as of November 1, 1986, between Holdings and Xxxxxx
Guaranty Trust Company of New York, as amended by the two Supplemental
Indentures dated the Recapitalization Date.
"Credit
Facility"
means a
category of Commitments and extensions of credit thereunder.
"Debenture
Account"
means
an account established with the Administrative Agent in the name of the
Administrative Agent and for the benefit of the Lenders having the terms
specified in Exhibit B, all proceeds in which will be used to defease,
redeem, repay or repurchase or otherwise retire Convertible Debentures as
specified in this Agreement.
"Debenture
Holders"
means
the holders of record, from time to time, of the Convertible
Debentures.
"Debenture
Maturity Date"
means
December 15, 2003.
"Default"
means
any event or condition which constitutes an Event of Default or which upon
notice, lapse of time or both would, unless cured or waived, become an Event
of
Default.
"Disclosed
Matters"
means
the actions, suits and proceedings and the environmental matters disclosed
in
Schedule 3.06 to the Original Credit Agreement.
"dollars"
or
"$"
refers
to lawful money of the United States of America.
"Dollar
Equivalent"
means,
on any date of determination, (a) with respect to any amount in dollars,
such amount, and (b) with respect to any amount in any Foreign Currency,
the equivalent in dollars of such amount, determined by the Administrative
Agent
pursuant to Section 1.05(b) using the Exchange Rate with respect to such
Foreign Currency at the time in effect under the provisions of such
Section.
13
"Domestic
Loan Party"
means
any Loan Party, other than the Foreign Subsidiary Borrowers.
"Effective
Date"
means
June 20, 2002.
"EMU
Legislation"
means
the legislative measures of the European Union for the introduction of,
changeover to or operation of the Euro in one or more member
states.
"Environmental
Laws"
means
all laws, rules, regulations, codes, ordinances, orders, decrees, judgments,
injunctions, notices or binding agreements issued, promulgated or entered into
by any Governmental Authority, relating in any way to the environment,
preservation or reclamation of natural resources, the management, Release or
threatened Release of any Hazardous Material or to health and safety
matters.
"Environmental
Liability"
means
any liabilities, obligations, damages, losses, claims, actions, suits,
judgments, or orders, contingent or otherwise (including any liability for
damages, costs of environmental remediation, costs of administrative oversight,
fines, natural resource damages, penalties or indemnities), of Holdings, the
Parent Borrower or any Subsidiary (including the Receivables Subsidiary)
directly or indirectly resulting from or relating to (a) compliance or
non-compliance with any Environmental Law, (b) the generation, use,
handling, transportation, storage, treatment or disposal of any Hazardous
Materials, (c) any actual or alleged exposure to any Hazardous Materials,
(d) the Release or threatened Release of any Hazardous Materials or (e) any
contract, agreement or other consensual arrangement pursuant to which liability
is assumed or imposed with respect to any of the foregoing.
"Equity
Interests"
means
shares of capital stock, partnership interests, membership interests in a
limited liability company, beneficial interests in a trust or other equity
ownership interests in a Person or any warrants, options or other rights to
acquire such interests.
"Equity
Rollover"
means
the issuance of common stock of Holdings on the Recapitalization Date to the
Continuing Shareholders (as defined in the Recapitalization Agreement) or their
permitted transferees under the Exchange and Voting Agreement (as defined in
the
Recapitalization Agreement), in each case pursuant to and in accordance with
Section 2.04(d) of the Recapitalization Agreement.
"ERISA"
means
the Employee Retirement Income Security Act of 1974, as amended from time to
time.
"ERISA
Affiliate"
means
any trade or business (whether or not incorporated) that, together with the
Parent Borrower, is treated as a single employer under Section 414(b) or
(c) of the Code or, solely for purposes of Section 302 of ERISA and Section
412 of the Code, is treated as a single employer under Section 414 of the
Code.
14
"ERISA
Event"
means
(a) any "reportable event", as defined in Section 4043 of ERISA or the
regulations issued thereunder with respect to a Plan (other than an event for
which the 30-day notice period is waived); (b) the existence with respect
to any Plan of an "accumulated funding deficiency" (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not
waived; (c) the filing pursuant to Section 412(d) of the Code or
Section 303(d) of ERISA of an application for a waiver of the minimum
funding standard with respect to any Plan; (d) the incurrence by the Parent
Borrower or any of its ERISA Affiliates of any liability under Title IV of
ERISA with respect to the termination of any Plan; (e) the receipt by the
Parent Borrower or any ERISA Affiliate from the PBGC or a plan administrator
of
any notice relating to an intention to terminate any Plan or Plans or to appoint
a trustee to administer any Plan; (f) the incurrence by the Parent Borrower
or any of its ERISA Affiliates of any liability with respect to the withdrawal
or partial withdrawal from any Plan or Multiemployer Plan; or (g) the
receipt by the Parent Borrower or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from the Parent Borrower or any ERISA
Affiliate of any notice, concerning the imposition of Withdrawal Liability
or a
determination that a Multiemployer Plan is, or is expected to be, insolvent
or
in reorganization, within the meaning of Title IV of ERISA.
"Euro"
or "€"
means the single currency of the European Union as constituted by the Treaty
on
European Union and as referred to in the EMU Legislation.
"Eurocurrency",
when
used in reference to any Loan or Borrowing, refers to whether such Loan, or
the
Loans comprising such Borrowing, are bearing interest at a rate determined
by
reference to the Adjusted LIBO Rate.
"Event
of Default"
has the
meaning assigned to such term in Article VII.
"Excess
Cash Flow"
means,
for any fiscal year, the sum (without duplication) of:
(a)
the
consolidated net income (or loss) of Holdings, the Parent Borrower and its
consolidated Subsidiaries (including the Receivables Subsidiary) for such fiscal
year, adjusted to exclude any gains or losses attributable to Prepayment Events;
plus
(b)
the
excess, if any, of the Net Proceeds received during such fiscal year by
Holdings, the Parent Borrower and its consolidated Subsidiaries (including
the
Receivables Subsidiary) in respect of any Prepayment Events over the aggregate
principal amount of Term Loans prepaid pursuant to Section 2.11(d) (and, as
applicable to such fiscal year, Existing Term Loans prepaid pursuant to Section
2.11(d) of the Original Credit Agreement) in respect of such Net Proceeds;
plus
(c)
depreciation, amortization and other noncash charges or losses deducted in
determining such consolidated net income (or loss) for such fiscal year;
plus
15
(d)
the
sum of (i) the amount, if any, by which Net Working Capital (adjusted to
exclude changes arising from Permitted Acquisitions) decreased during such
fiscal year plus (ii) the net amount, if any, by which the consolidated deferred
revenues and other consolidated accrued long-term liability accounts of
Holdings, the Parent Borrower and its consolidated Subsidiaries (including
the
Receivables Subsidiary) (adjusted to exclude changes arising from Permitted
Acquisitions) increased during such fiscal year plus (iii) the net amount,
if
any, by which the consolidated accrued long-term asset accounts of Holdings,
Parent Borrower and its consolidated Subsidiaries (including the Receivables
Subsidiary) (adjusted to exclude changes arising from Permitted Acquisitions)
decreased during such fiscal year; minus
(e)
the
sum of (i) any noncash gains included in determining such consolidated net
income (or loss) for such fiscal year plus (ii) the amount, if any, by which
Net
Working Capital (adjusted to exclude changes arising from Permitted
Acquisitions) increased during such fiscal year plus (iii) the net amount,
if
any, by which the consolidated deferred revenues and other consolidated accrued
long-term liability accounts of Holdings, the Parent Borrower and its
consolidated Subsidiaries (including the Receivables Subsidiary) (adjusted
to
exclude changes arising from Permitted Acquisitions) decreased during such
fiscal year plus (iv) the net amount, if any, by which the consolidated accrued
long-term asset accounts of Holdings, the Parent Borrower and its consolidated
Subsidiaries (including the Receivables Subsidiary) (adjusted to exclude changes
arising from Permitted Acquisitions) increased during such fiscal year;
minus
(f)
the
sum of (i) Capital Expenditures for such fiscal year (except to the extent
attributable to the incurrence of Capital Lease Obligations or otherwise
financed by incurring Long-Term Indebtedness) plus
(ii) cash consideration paid during such fiscal year to make acquisitions
or other capital investments (except to the extent financed by incurring
Long-Term Indebtedness); minus
(g)
the
aggregate principal amount of Long-Term Indebtedness repaid or prepaid by
Holdings, the Parent Borrower and its consolidated Subsidiaries (including
the
Receivables Subsidiary) during such fiscal year, excluding (i) Indebtedness
in respect of Revolving Loans and Letters of Credit, (ii) Term Loans
prepaid pursuant to Section 2.11(d) or (f) (and, as applicable to such fiscal
year, Existing Term Loans prepaid pursuant to Section 2.11(d) or (f) of the
Original Credit Agreement) and (iii) repayments or prepayments of Long-Term
Indebtedness financed by incurring other Long-Term Indebtedness; minus
(h)
[intentionally omitted];
(i)
the
noncash impact of currency translations and other adjustments to the equity
account, including adjustments to the carrying value of marketable securities
and to pension liabilities, in each case to the extent such items would
otherwise constitute Excess Cash Flow.
16
"Exchange
Rate"
means
on any day, with respect to any Foreign Currency, the rate at which such Foreign
Currency may be exchanged into dollars, as set forth at approximately
11:00 a.m., London time, on such day on the Reuters World Currency Page for
such Foreign Currency. In the event that such rate does not appear on any
Reuters World Currency Page, the Exchange Rate shall be determined by reference
to such other publicly available service for displaying exchange rates as may
be
agreed upon by the Administrative Agent and the Parent Borrower, or, in the
absence of such agreement, such Exchange Rate shall instead be the arithmetic
average of the spot rates of exchange of the Administrative Agent in the market
where its foreign currency exchange operations in respect of such Foreign
Currency are then being conducted, at or about 10:00 a.m., local time, on
such date for the purchase of dollars for delivery two Business Days later;
provided
that if
at the time of any such determination, for any reason, no such spot rate is
being quoted, the Administrative Agent, after consultation with the Parent
Borrower, may use any reasonable method it deems appropriate to determine such
rate, and such determination shall be conclusive absent manifest
error.
"Excluded
Amount"
means,
with respect to any fiscal period ending on the date specified below, the amount
set forth opposite such date:
Date
|
Amount
|
December 31,
2000
|
$15,000,000
|
March 31,
2001
|
$15,000,000
|
June 30,
2001
|
$12,500,000
|
September 20,
2001
|
$10,000,000
|
December 31,
2001
|
$
7,500,000
|
"Excluded
Severance Charges"
means
any nonrecurring severance or similar costs relating to the termination of
employment of any employees arising during any four-fiscal-quarter period ending
on or prior to December 31, 2003, not to exceed in the aggregate for all
such periods $12,500,000.
"Excluded
Taxes"
means,
with respect to the Administrative Agent, any Lender, the Issuing Bank or any
other recipient of any payment to be made by or on account of any obligation
of
the Parent Borrower or any Foreign Subsidiary Borrower hereunder,
(a) income or franchise taxes imposed on (or measured by) its net income by
the United States of America, or by the jurisdiction under the laws of
which such recipient is organized or in which its principal office is located
or, in the case of any Lender, in which its applicable lending office is
located, (b) any branch profits Taxes imposed by the United States of
America or any similar Tax imposed by any other jurisdiction described in
clause (a) above and (c) in the case of a Foreign Lender (other than
an assignee pursuant to a request by the Parent Borrower under
Section 2.19(b)), (i) any United States withholding Tax that is
in effect and would apply to amounts payable to such Foreign Lender at the
time
such Foreign Lender becomes a party to this Agreement (or designates a new
lending office), except to the extent that such Foreign Lender (or its assignor,
if any) was entitled, at the time of designation of a new lending
17
office
(or assignment), to receive additional amounts from the Parent Borrower with
respect to any United States withholding Tax pursuant to Section 2.17(a)
and (ii) any withholding Tax that is attributable to such Foreign Lenders'
failure to comply with Section 2.17(e).
"Existing
Letters of Credit"
means
the letters of credit issued under the Original Credit Agreement and outstanding
as of the Effective Date, which are listed on
Schedule 1.01(a).
"Existing
Subordinated Notes"
means
the 11% Subordinated Notes of Holdings due 2012 in the aggregate principal
amount of $250,000,000 (including the Exchange Notes issued in exchange for
the
initial Existing Subordinated Notes as contemplated by the registration rights
agreement related thereto) and the Indebtedness represented
thereby.
"Existing
Subordinated Notes Documents"
means
the Existing Subordinated Notes, the indenture under which the Existing
Subordinated Notes are issued and all other documents evidencing, guaranteeing
or otherwise governing the terms of the Existing Subordinated
Notes.
"Federal
Funds Effective Rate"
means,
for any day, the weighted average (rounded upwards, if necessary, to the next
1/100 of 1%) of the rates on overnight Federal funds transactions with members
of the Federal Reserve System arranged by Federal funds brokers, as published
on
the next succeeding Business Day by the Federal Reserve Bank of New York,
or, if such rate is not so published for any day that is a Business Day, the
average (rounded upwards, if necessary, to the next 1/100 of 1%) of the
quotations for such day for such transactions received by the Administrative
Agent from three Federal funds brokers of recognized standing selected by
it.
"Financial
Officer"
means
the chief financial officer, principal accounting officer, treasurer or
controller of the Parent Borrower.
"Foreign
Currencies"
means
Euro and Sterling.
"Foreign
Currency Commitment"
means,
with respect to each Revolving Lender, the commitment of such Revolving Lender
to make Foreign Currency Loans and to acquire participations in Foreign Currency
Letters of Credit, expressed as an amount representing the maximum aggregate
amount of such Revolving Lender's Foreign Currency Exposure hereunder, as such
commitment may be reduced from time to time pursuant to Section 2.08 and
(b) reduced or increased from time to time pursuant to assignments by or to
such Revolving Lender pursuant to Section 10.04. The initial amount of each
Revolving Lender's Foreign Currency Commitment is set forth on
Schedule 2.01, or in the Assignment and Acceptance pursuant to which such
Revolving Lender shall have assumed its Foreign Currency Commitment, as
applicable. The initial aggregate amount of the Revolving Lenders' Foreign
Currency Commitments is the Dollar Equivalent of $75,000,000.
18
"Foreign
Currency Exposure"
means,
with respect to any Revolving Lender at any time, the Dollar Equivalent of
the
sum of the outstanding principal amount of such Lender's Foreign Currency Loans
and its Foreign Currency LC Exposure at such time.
"Foreign
Currency LC Exposure"
means,
at any time, the sum of (a) the aggregate undrawn amount of all outstanding
Foreign Currency Letters of Credit at such time plus (b) the aggregate
amount of all LC Disbursements in respect of Foreign Currency Letters of Credit
that have not yet been reimbursed by or on behalf of the Foreign Subsidiary
Borrowers at such time. The Foreign Currency LC Exposure of any Revolving Lender
at any time shall be its Applicable Percentage of the total Foreign Currency
LC
Exposure at such time.
"Foreign
Currency Letter of Credit"
means a
Letter of Credit denominated in a Foreign Currency.
"Foreign
Currency Loan"
means a
Revolving Loan denominated in a Foreign Currency.
"Foreign
Factoring Arrangement"
means
any factoring arrangements entered into by any Foreign Subsidiary with respect
to accounts receivable of such entity that are held in Europe, Mexico or Canada
pursuant to customary terms, provided
that the
aggregate recourse and exposure in respect thereof shall not at any time exceed
$15,000,000.
"Foreign
Lender"
means
any Lender that is organized under the laws of a jurisdiction other than that
in
which the Parent Borrower or any Foreign Subsidiary Borrower, as the case may
be, is located. For purposes of this definition, the United States of
America, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.
"Foreign
Security Collateral and Guarantee Requirement"
means
the requirement that:
(a) the
Collateral Agent shall have received from the applicable Foreign Subsidiary
Borrower and its subsidiaries a counterpart of each Foreign Security Document
relating to the assets (including the capital stock of its subsidiaries) of
such
Foreign Subsidiary Borrower, excluding assets as to which the Collateral Agent
shall determine in its reasonable discretion, after consultation with the Parent
Borrower, that the costs and burdens of obtaining a security interest are
excessive in relation to the value of the security afforded
thereby;
(b) all
documents and instruments (including legal opinions) required by law or
reasonably requested by the Collateral Agent to be filed, registered or recorded
to create the Liens intended to be created over the assets specified in
clause (a) above and perfect such Liens to the extent required by, and with
priority required by, such Foreign Security Documents, shall have been filed,
19
registered
or recorded or delivered to the Collateral Agent for filing, registration or
recording;
(c) such
Foreign Subsidiary Borrower and its subsidiaries shall become a guarantor of
the
obligations under the Loan Documents of other Foreign Subsidiary Borrowers,
if
any, under a guarantee agreement reasonably acceptable to the Collateral Agent,
in either case duly executed and delivered on behalf of such Foreign Subsidiary
Borrower and such subsidiaries, except that such guarantee shall not be required
if the Collateral Agent shall determine in its reasonable discretion, after
consultation with the Parent Borrower, that the benefits of such a guarantee
are
limited and such limited benefits are not justified in relation to the burdens
imposed by such guarantee on the Parent Borrower and its Subsidiaries;
and
(d) such
Foreign Subsidiary Borrower shall have obtained all consents and approvals
required to be obtained by it in connection with the execution of such Foreign
Security Documents, the performance and obligations thereunder and the granting
by it of the Liens thereunder.
"Foreign
Security Documents"
means
any agreement or instrument entered into by any Foreign Subsidiary Borrower
that
is reasonably requested by the Collateral Agent providing for a Lien over the
assets (including shares of other Subsidiaries) of such Foreign Subsidiary
Borrower.
"Foreign
Subsidiary"
means
any Subsidiary that is organized under the laws of a jurisdiction other than
the
United States of America or any State thereof or the District of
Columbia.
"Foreign
Subsidiary Borrowers"
means
any wholly owned Foreign Subsidiary of the Parent Borrower organized under
the
laws of England and Wales, any member nation of the European Union or any other
nation in Europe reasonably acceptable to the Collateral Agent that becomes
a
party to this Agreement pursuant to Section 2.21.
"Foreign
Subsidiary Borrowing Agreement"
means
an agreement substantially in the form of Exhibit C.
"GAAP"
means
generally accepted accounting principles in the United States of
America.
"Governmental
Authority"
means
the government of the United States of America, any other nation or any
political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.
"Guarantee"
of or
by any Person (the "guarantor")
means
any obligation, contingent or otherwise, of the guarantor guaranteeing or having
the economic effect of
20
guaranteeing
any Indebtedness or other obligation of any other Person (the "primary
obligor")
in any
manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness or other obligation
or
to purchase (or to advance or supply funds for the purchase of) any security
for
the payment thereof, (b) to purchase or lease property, securities or
services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (c) to maintain working capital, equity
capital or any other financial statement condition or liquidity of the primary
obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation or (d) as an account party in respect of any letter of credit or
letter of guaranty issued to support such Indebtedness or obligation;
provided,
that
the term Guarantee shall not include endorsements for collection or deposit
in
the ordinary course of business.
"Guarantee
Agreement"
means
the Guarantee Agreement, substantially in the form of Exhibit D, made by
Holdings, the Parent Borrower and the Subsidiary Loan Parties party thereto
in
favor of the Collateral Agent for the benefit of the Secured
Parties.
"Hazardous
Materials"
means
all explosive, radioactive, hazardous or toxic substances, wastes or other
pollutants, including petroleum or petroleum distillates, asbestos or asbestos
containing materials, polychlorinated biphenyls, radon gas, infectious or
medical wastes and all other substances or wastes of any nature regulated
pursuant to any Environmental Law.
"Heartland"
means
Heartland Industrial Partners, L.P., a Delaware limited
partnership.
"Heartland
Management Agreement"
means
the monitoring agreement dated as of the Recapitalization Date between Heartland
and Holdings.
"Hedging
Agreement"
means
any interest rate protection agreement, foreign currency exchange agreement,
commodity price protection agreement or other interest or currency exchange
rate
or commodity price hedging arrangement.
"HIP
Co-Investor"
means a
shareholder of Holdings that is a limited partner, or an Affiliate of a limited
partner, in Heartland or in any other fund or investment vehicle established
or
managed by Heartland or an Affiliate of Heartland and shall in any event include
those Persons constituting HIP Co-Investors under the Shareholder Agreement
on
the Recapitalization Date.
"Holdings"
means
Metaldyne Corporation, formerly known as MascoTech, Inc., a Delaware
corporation.
"Holdings
Preferred Dividends"
means
(a) dividend payments due in respect of the Holdings Preferred Stock
pursuant to Article 4(c)(2) of Holdings' Certificate of Designation and
(b) any cash dividend payments in respect of any Qualified Holdings
Preferred Stock.
21
"Holdings
Preferred Stock"
means
the Series A Preferred Stock issued by Holdings, having an aggregate
liquidation value of $36,100,100 and the other terms specified in Holdings'
Certificate of Incorporation.
"Indebtedness"
of any
Person means, without duplication, (a) all obligations of such Person for
borrowed money or with respect to advances of any kind, (b) all obligations
of such Person evidenced by bonds, debentures, notes or similar instruments,
(c) all obligations of such Person upon which interest charges are
customarily paid, (d) all obligations of such Person under conditional sale
or other title retention agreements relating to property acquired by such
Person, (e) all obligations of such Person in respect of the deferred
purchase price of property or services (excluding current accounts payable
incurred in the ordinary course of business), (f) all Indebtedness of
others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned
or
acquired by such Person, whether or not the Indebtedness secured thereby has
been assumed, (g) all Guarantees by such Person of Indebtedness of others,
(h) all Capital Lease Obligations of such Person (other than lease
obligations that are Capital Lease Obligations solely because of a Guarantee),
(i) all obligations, contingent or otherwise, of such Person as an account
party in respect of letters of credit and letters of guaranty and (j) all
obligations, contingent or otherwise, of such Person in respect of bankers'
acceptances. The Indebtedness of any Person shall include the Indebtedness
of
any other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefor as a result of such
Person's ownership interest in or other relationship with such entity, except
to
the extent the terms of such Indebtedness provide that such Person is not liable
therefor. Notwithstanding anything to the contrary in this paragraph, the term
"Indebtedness" shall not include (a) the Restricted Stock Obligation,
(b) any obligation in respect of the Saturn Proceeds Distribution,
(c) any obligations in respect of options or other Equity Interests held by
the Pre-Merger Stockholders to the extent surviving the Recapitalization
Transactions, (d) agreements providing for indemnification, purchase price
adjustments or similar obligations incurred or assumed in connection with the
acquisition or disposition of assets or capital stock and (e) trade
payables and accrued expenses in each case arising in the ordinary course of
business.
"Indemnified
Taxes"
means
Taxes other than Excluded Taxes.
"Indemnity,
Subrogation and Contribution Agreement"
means
the Indemnity, Subrogation and Contribution Agreement, substantially in the
form
of Exhibit E, among the Parent Borrower, the Subsidiary Loan Parties party
thereto and the Collateral Agent.
"Information
Memorandum"
means
the Confidential Information Memorandum dated June, 2002, relating to the Parent
Borrower and the Transactions.
"Intercompany
Transfer"
means
the dividend or other intercompany distribution by the Parent Borrower to
Holdings, all of which was used by Holdings as payment, in part, of the Merger
Consideration.
22
"Intercreditor
Agreement"
means
an intercreditor agreement among Holdings, the Parent Borrower, the
Administrative Agent (or other agent acting on behalf of the Lenders) and the
trustee or agent on behalf of the holders of the applicable Permitted Senior
Notes, which such agreement shall (i) provide that the Liens in respect of
such Permitted Senior Notes are subordinated to the Liens under the Collateral
Documents, (ii) limit the ability of such trustee or agent and the holders
of the Permitted Senior Notes to take actions with respect to, or enforce,
such
Liens and (iii) have such other terms as are satisfactory to the
Administrative Agent.
"Interest
Election Request"
means a
request by the Parent Borrower or a Foreign Subsidiary Borrower, as the case
may
be, to convert or continue a Revolving Borrowing or Term Borrowing in accordance
with Section 2.07.
"Interest
Payment Date"
means
(a) with respect to any ABR Loan (other than a Swingline Loan), the last
day of each March, June, September and December, (b) with respect to any
Eurocurrency Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Eurocurrency
Borrowing with an Interest Period of more than three months' duration, each
day
prior to the last day of such Interest Period that occurs at intervals of three
months' duration after the first day of such Interest Period and (c) with
respect to any Swingline Loan, the day that such Loan is required to be
repaid.
"Interest
Period"
means, with respect to any Eurocurrency Borrowing, the period commencing on
the date of such Borrowing and ending on the numerically corresponding day
in
the calendar month that is one, two, three or six months thereafter (or
nine or twelve months thereafter if, at the time of the relevant Borrowing,
all
Lenders participating therein agree to make an interest period of such duration
available), as the Parent Borrower or a Foreign Subsidiary Borrower, as the
case
may be, may elect; provided,
that
(a) if any Interest Period would end on a day other than a Business Day,
such Interest Period shall be extended to the next succeeding Business Day
unless such next succeeding Business Day would fall in the next calendar month,
in which case such Interest Period shall end on the next preceding Business
Day
and (b) any Interest Period that commences on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding
day
in the last calendar month of such Interest Period) shall end on the last
Business Day of the last calendar month of such Interest Period. For purposes
hereof, the date of a Borrowing initially shall be the date on which such
Borrowing is made and thereafter shall be the effective date of the most recent
conversion or continuation of such Borrowing.
"Investors"
means
Heartland, its Affiliates and the other entities identified by Heartland as
"Investors" to the Administrative Agent prior to the Recapitalization
Date.
"IPO"
means
an underwritten public offering by Holdings of Equity Interests of Holdings
pursuant to a registration statement filed with the Securities and Exchange
Commission in accordance with the Securities Act of 1933.
23
"Issuing
Bank"
means
Chase, in its capacity as the issuer of Letters of Credit hereunder, and its
successors in such capacity as provided in Section 2.05(i). The Issuing
Bank may, in its discretion, arrange for one or more Letters of Credit to be
issued by Affiliates of the Issuing Bank, including with respect to Foreign
Currency Letters of Credit, and in each such case the term "Issuing Bank" shall
include any such Affiliate with respect to Letters of Credit issued by such
Affiliate. In the event that there is more than one Issuing Bank at any time,
references herein and in the other Loan Documents to the Issuing Bank shall
be
deemed to refer to the Issuing Bank in respect of the applicable Letter of
Credit or to all Issuing Banks, as the context requires. Notwithstanding the
foregoing, each institution listed in Schedule 1.01(a) shall be deemed to
be an Issuing Bank with respect to the Existing Letters of Credit issued by
it.
"Judgment
Currency"
has the
meaning set forth in Section 10.14.
"Judgment
Currency Conversion Date"
has the
meaning set forth in Section 10.14.
"LC
Disbursement"
means a
payment made by the Issuing Bank pursuant to a Letter of Credit.
"LC
Exposure"
means,
at any time, the sum of (a) the aggregate undrawn amount of all outstanding
Letters of Credit at such time plus (b) the aggregate amount of all LC
Disbursements that have not yet been reimbursed by or on behalf of the Parent
Borrower or the Foreign Subsidiary Borrowers, as the case may be, at such time.
The LC Exposure of any Revolving Lender at any time shall be its Applicable
Percentage of the total LC Exposure at such time.
"LC
Reserve Account"
has the
meaning set forth in Section 9.02(a).
"Lender
Affiliate"
means,
(a) with respect to any Lender, (i) an Affiliate of such Lender or
(ii) any entity (whether a corporation, partnership, trust or otherwise)
that is engaged in making, purchasing, holding or otherwise investing in bank
loans and similar extensions of credit in the ordinary course of its business
and is administered or managed by a Lender or an Affiliate of such Lender and
(b) with respect to any Lender that is a fund that invests in bank loans
and similar extensions of credit, any other fund that invests in bank loans
and
similar extensions of credit and is managed by the same investment advisor
as
such Lender or by an Affiliate of such investment advisor.
"Lenders"
means
the Persons listed on Schedule 2.01 and any other Person that shall have
become a party hereto pursuant to an Assignment and Acceptance, other than
any
such Person that ceases to be a party hereto pursuant to an Assignment and
Acceptance. Unless the context otherwise requires, the term "Lenders" includes
the Swingline Lender.
"Letter
of Credit"
means
any letter of credit issued pursuant to this Agreement. Each Existing Letter
of
Credit shall be deemed to constitute a Letter of Credit issued hereunder on
the
Effective Date for all purposes of the Loan Documents.
24
"Leverage
Ratio"
means,
on any date, the ratio of (a) Total Indebtedness as of such date to
(b) Consolidated EBITDA for the period of four consecutive fiscal quarters
of Holdings ended on such date (or, if such date is not the last day of a fiscal
quarter, ended on the last day of the fiscal quarter of Holdings most recently
ended prior to such date for which financial statements are
available).
"LIBO
Rate"
means,
with respect to any Eurocurrency Borrowing (other than such Borrowings
denominated in a Foreign Currency) for any Interest Period, the rate appearing
on Page 3750 of the Dow Xxxxx Market Service (or on any successor or substitute
page of such Service, or any successor to or substitute for such Service,
providing rate quotations comparable to those currently provided on such page
of
such Service, as determined by the Administrative Agent from time to time for
purposes of providing quotations of interest rates applicable to dollar deposits
in the London interbank market) at approximately 11:00 a.m., London time,
two Business Days prior to the commencement of such Interest Period, as the
rate
for dollar deposits with a maturity comparable to such Interest Period. With
respect to Eurocurrency Borrowings denominated in a Foreign Currency, the LIBO
Rate for any Interest Period shall be determined by the Administrative Agent
at
approximately 11:00 a.m., London time, on the Quotation Day for such
Interest Period by reference to the British Bankers' Association Interest
Settlement Rates for deposits in the currency of such Borrowing (as reflected
on
the applicable Telerate screen) for a period equal to such Interest Period.
In
the event that such rate is not available at such time for any reason, then
the
"LIBO
Rate"
with
respect to such Eurocurrency Borrowing for such Interest Period shall be the
rate at which deposits in the applicable currency for the Dollar Equivalent
of
$5,000,000 and for a maturity comparable to such Interest Period are offered
by
the principal London office of the Administrative Agent in immediately available
funds in the London interbank market at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest
Period.
"Lien"
means,
with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
hypothecation, encumbrance, charge or security interest in, on or of such asset,
(b) the interest of a vendor or a lessor under any conditional sale
agreement, capital lease or title retention agreement (or any financing lease
having substantially the same economic effect as any of the foregoing) relating
to such asset and (c) in the case of securities, any purchase option, call
or similar right of a third party with respect to such securities.
"Loan
Documents"
means
this Agreement and the Security Documents.
"Loan
Parties"
means
Holdings, the Parent Borrower, the Foreign Subsidiary Borrowers and the other
Subsidiary Loan Parties.
"Loans"
means
the loans made by the Lenders to the Parent Borrower and the Foreign Subsidiary
Borrowers pursuant to this Agreement.
25
"Long-Term
Indebtedness"
means
any Indebtedness that, in accordance with GAAP, constitutes (or, when incurred,
constituted) a long-term liability, including the current portion of any
Long-Term Indebtedness.
"Margin
Stock"
shall
have the meaning assigned to such term in Regulation U.
"Masco"
means
Masco Corporation, a Delaware corporation, or any successor
thereto.
"Material
Adverse Effect"
means a
material adverse effect on (a) the business, operations, properties,
assets, financial condition, contingent or otherwise, or material agreements
of
Holdings, the Parent Borrower and the Subsidiaries (including the Receivables
Subsidiary), taken as a whole (it being understood that any effect on the
business, operations, properties, assets, financial condition, contingent or
otherwise or material agreements of Holdings, the Parent Borrower and the
Subsidiaries (including the Receivables Subsidiary) resulting from the Asset
Dropdown will not constitute a material adverse effect for purposes of this
clause (a)), (b) the ability of any Loan Party in any material respect
to perform any of its obligations under any Loan Document or (c) the rights
of or benefits available to the Lenders under any Loan Document.
"Material
Agreements"
means
(a) any agreements or instruments relating to Material Indebtedness and
(b) the Heartland Management Agreement.
"Material
Indebtedness"
means
(a) Indebtedness in respect of the Existing Subordinated Notes, Convertible
Debentures, the Permitted Subordinated Notes and the Permitted Senior Notes,
(b) obligations in respect of the Permitted Receivables Financing and
(c) any other Indebtedness (other than the Loans and Letters of Credit), or
obligations in respect of one or more Hedging Agreements, of any one or more
of
Holdings, the Parent Borrower and its Subsidiaries evidencing an aggregate
outstanding principal amount exceeding $15,000,000. For purposes of determining
Material Indebtedness, the "principal amount" of the obligations of Holdings,
the Parent Borrower or any Subsidiary in respect of any Hedging Agreement at
any
time shall be the maximum aggregate amount (giving effect to any netting
agreements) that Holdings, the Parent Borrower or such Subsidiary would be
required to pay if such Hedging Agreement were terminated at such
time.
"Merger"
means
the merger of Merger Subsidiary with and into Holdings, with respect to which
Holdings was the surviving entity as contemplated by the Recapitalization
Agreement.
"Merger
Consideration"
means
the cash payment to the Pre-Merger Stockholders in accordance with the
Recapitalization Agreement in an amount not exceeding $609,200,000.
"Merger
Subsidiary"
means
Riverside Acquisition Corporation, a Delaware corporation, all the Equity
Interests of which are owned by Heartland, its Affiliate and the other
Investors.
26
"Moody's"
means
Xxxxx'x Investors Service, Inc.
"Mortgage"
means a
mortgage, deed of trust, assignment of leases and rents, leasehold mortgage
or
other security document granting a Lien on any Mortgaged Property to secure
the
Obligations. Each Mortgage shall be substantially in the form of Exhibit F
with such changes as are necessary under applicable local law.
"Mortgaged
Property"
means,
initially, each parcel of real property and the improvements thereto owned
by a
Loan Party as of the Effective Date, and includes each other parcel of real
property and improvements thereto with respect to which a Mortgage is granted
pursuant to Section 5.12 or 5.13 and any property subject to an operating lease
which is terminated in accordance with Section 5.16.
"Multiemployer
Plan"
means a
multiemployer plan as defined in Section 4001(a)(3) of ERISA.
"Net
Proceeds"
means,
with respect to any event (a) the cash proceeds received in respect of such
event including (i) any cash received in respect of any noncash proceeds,
but only as and when received, (ii) in the case of a casualty, insurance
proceeds in excess of $1,000,000 (excluding proceeds arising from the Compac
Event), and (iii) in the case of a condemnation or similar event,
condemnation awards and similar payments, net of (b) the sum of
(i) all reasonable fees and out-of-pocket expenses and premiums paid by
Holdings, the Parent Borrower and the Subsidiaries in connection with such
event, (ii) in the case of a sale, transfer or other disposition of an asset
(including pursuant to a sale and leaseback transaction or a casualty or a
condemnation or similar proceeding), the amount of all payments required to
be
made by Holdings, the Parent Borrower and the Subsidiaries as a result of such
event to repay Indebtedness (other than Loans) secured by such asset or
otherwise subject to mandatory prepayment as a result of such event, and
(iii) the amount of all Taxes paid (or reasonably estimated to be payable)
by Holdings, the Parent Borrower and the Subsidiaries, and the amount of any
reserves established by Holdings, the Parent Borrower and the Subsidiaries
to
fund contingent liabilities reasonably estimated to be payable, in each case
during the 24-month period immediately following such event and that are
directly attributable to such event (as determined reasonably and in good faith
by the chief financial officer of Holdings or the Parent Borrower) to the extent
such liabilities are actually paid within such applicable time periods.
Notwithstanding anything to the contrary set forth above, (i) the proceeds
of
any sale, transfer or other disposition of receivables (or any interest therein)
pursuant to any Permitted Receivables Financing shall not be deemed to
constitute Net Proceeds and (ii) the proceeds of any sale, transfer or other
disposition of receivables (or any interest therein) pursuant to any Foreign
Factoring Arrangement shall constitute Net Proceeds only to the extent such
proceeds can be repatriated to the United States without adverse tax
consequences to the Parent Borrower or any Subsidiary.
"Net
Working Capital"
means,
at any date, (a) the consolidated current assets of Holdings, the Parent
Borrower and its consolidated Subsidiaries (including the Receivables
Subsidiary) as of such date (excluding cash and Permitted Investments) minus
(b) the consolidated current liabilities of Holdings, the Parent Borrower
and its
27
consolidated
Subsidiaries (including the Receivables Subsidiary) as of such date (excluding
current liabilities in respect of Indebtedness). Net Working Capital at any
date
may be a positive or negative number. Net Working Capital increases when it
becomes more positive or less negative and decreases when it becomes less
positive or more negative.
"New
Castle Acquisition"
means
the acquisition by the Parent Borrower or a Subsidiary of all the remaining
Equity Interests of NC-M Chassis Systems, LLC not then owned by the Parent
Borrower or a Subsidiary or all, or substantially all, of the assets of NC-M
Chassis Systems, LLC so long as (a) the total consideration (excluding
fees, expenses and assumed liabilities) for such remaining Equity Interests
or
assets shall not exceed $215,000,000, (b) such acquisition shall be
financed with (i) the issuance of Equity Interests by Holdings of not less
than $64,000,000, (ii) Permitted Senior Notes to the extent contemplated by
the defined term "Permitted Senior Notes", (iii) New Castle Seller Debt,
(iv) Revolving Loans, Permitted Receivables Financing or, subject to
Section 6.06, the New Castle Sale and Leaseback, or any combination
thereof, in an aggregate amount not to exceed $120,000,000, or (v) any
combination of the foregoing, (c) such acquisition is consummated within
180 days of the Amendment Date, (d) after giving effect to such
acquisition (and any related incurrence of or repayment of Indebtedness),
(i) the Senior Secured Leverage Ratio is less than 2.75 to 1.00 and
(ii) the Leverage Ratio is less than 4.75 to 1.00, and (e) immediately
after giving effect thereto, (i) no Default has occurred and is continuing
or would result therefrom, (ii) all transactions related thereto are
consummated in all material respects in accordance with applicable laws,
(iii) all the Equity Interests (other than Assumed Preferred Stock) of each
Subsidiary formed for the purpose of or resulting from such acquisition shall
be
owned directly by the Parent Borrower or a Subsidiary and all actions required
to be taken under Sections 5.12 and 5.13 have been taken,
(iv) Holdings, the Parent Borrower and its Subsidiaries are in compliance,
on a pro forma basis after giving effect to such acquisition, with the covenants
contained in Sections 6.13 and 6.14 recomputed as at the last day of the
most recently ended fiscal quarter of Holdings for which financial statements
are available, as if such acquisition (and any related incurrence or repayment
of Indebtedness) had occurred on the first day of each relevant period for
testing such compliance, (v) any Indebtedness or any preferred stock that
is incurred, acquired or assumed in connection with such acquisition shall
be in
compliance with Section 6.01 and (vi) the Parent Borrower has
delivered to the Administrative Agent an officers' certificate to the effect
set
forth in clauses (a), (b), (c) and (d) (i) through
(v) above, together with all relevant financial information for the Person
or assets to be acquired.
"New
Castle Sale and Leaseback"
shall
mean any sale or transfer not later than 30 days of the New Castle Acquisition
by the Parent Borrower or any Subsidiary of fixed or capital assets acquired
pursuant to the New Castle Acquisition that is made for cash consideration
in an
aggregate amount not less than an amount equal to 85% of the orderly liquidation
value of such fixed or capital assets not to exceed $120,000,000 in the
aggregate during the term of this Agreement, and promptly thereafter rented
or
leased by the Parent Borrower or such Subsidiary; provided that, notwithstanding
the foregoing, in connection with any New Castle Sale and Leaseback, Parent
Borrower or any Subsidiary may elect to (1) retain ownership of any portion
of
the fixed or capital assets that could
28
otherwise
have been made the subject of the New Castle Sale and Leaseback and (2) pledge
such retained assets as collateral security for any obligations in favor of
the
lessor(s) under any of the sale and leasing arrangements with respect to the
assets that were not so retained (with such security interests of the lessor(s)
being limited to the retained assets and the proceeds thereof), so long as
(A)
the cash proceeds received by the Parent Borrower and any Subsidiary from any
such transaction exceeds 85% of the orderly liquidation value of all fixed
and
capital assets that have been made the subject of a sale and leaseback and
the
collateral security arrangements and (B) in the good faith judgment of the
Parent Borrower, the financial terms of any such transaction are no less
favorable to the Parent Borrower and any Subsidiary, taken as a whole, than
would have been the case had the election set forth in this proviso not been
utilized.
"New
Castle Seller Debt"
means
subordinated notes issued by Holdings to the seller in the New Castle
Acquisition in an aggregate principal amount not less than $31,000,000, which
such notes shall rank pari
passu
and
shall be subject to the subordination and other terms that are no more favorable
to the holders or obligees thereof in any material respect than the
subordination and other terms of the Subordinated Debt.
"New
Castle Specified EBITDA"
means,
if the New Castle Acquisition has been consummated, the total of the amounts
for
any period prior to consummation of the New Castle Acquisition identified below
that is included within the period for which Consolidated EBITDA is being
calculated: (i) for the fiscal quarters ended December 31, 2002 and December
31,
2003, $11,046,443, (ii) for the fiscal quarters ended March 31, 2003 and March
31, 2004, $10,693,298, (iii) for the fiscal quarter ended June 30, 2003,
$12,030,358 and (iv) for the fiscal quarter ending September 30, 2003,
$13,729,901; provided,
however,
that
(A) to the extent the New Castle Acquisition has occurred during a particular
quarter, the amount to be included for such quarter shall be determined by
taking a proportionate amount of the quarter (based on actual days elapsed);
and
(B) following the completion of the New Castle Sale and Leaseback, New Castle
Specified EBITDA for any fiscal period calculated thereafter shall be reduced
by
the total pro forma lease expense for such fiscal period as if such expense
had
occurred on the first day of the relevant period for determining New Castle
Specified EBITDA (it being understood that no earlier calculation of
Consolidated EBITDA shall be affected thereby).
"North
American Forging Sale"
means
the sale by the Parent Borrower and certain of its subsidiaries of certain
assets comprising the Parent Borrower's North American forging business,
pursuant to the North American Forging Sale Agreement.
"North
American Forging Sale Agreement"
means
the Asset Purchase Agreement dated as of January 7, 2006, among Holdings, the
Parent Borrower, Metaldyne Precision Forming—Fort Xxxxx Inc. and Forming
Technologies, Inc., as the same may be revised prior to the closing of the
North
American Forging Sale in a manner not adverse to the Lenders.
29
"Obligations"
has the
meaning assigned to such term in the Security Agreement.
"Other
Taxes"
means
any and all present or future recording, stamp, documentary, excise, transfer,
sales, property or similar taxes, charges or levies imposed by any Governmental
Authority arising from any payment made under any Loan Document or from the
execution, delivery or enforcement of, or otherwise with respect to, any Loan
Document, other than Excluded Taxes.
"Parent
Borrower"
means
Metaldyne Company LLC, formerly known as Metalync Company LLC, a Delaware
limited liability company.
"PBGC"
means
the Pension Benefit Guaranty Corporation referred to and defined in ERISA and
any successor entity performing similar functions.
"Perfection
Certificate"
means a
certificate in the form of Annex I to the Security Agreement or any other
form approved by the Collateral Agent.
"Permitted
Acquisition"
means
(a) the New Castle Acquisition and (b) any acquisition, whether by
purchase, merger, consolidation or otherwise, by the Parent Borrower or a
Subsidiary of all or substantially all the assets of, or all the Equity
Interests in, a Person or a division, line of business or other business unit
of
a Person so long as (i) such acquisition shall not have been preceded by a
tender offer that has not been approved or otherwise recommended by the board
of
directors of such Person, (ii) such assets are to be used in, or such
Person so acquired is engaged in, as the case may be, a business of the type
conducted by the Parent Borrower and its Subsidiaries on the date of execution
of this Agreement or in a business reasonably related thereto, (iii) such
acquisition shall be financed with proceeds from (A) Revolving Loans
(subject to Section 6.01(a)(i)), the Permitted Subordinated Notes to the
extent the issuance thereof is permitted under the defined term "Permitted
Subordinated Notes" and/or Qualified Holdings Preferred Stock issued and
outstanding pursuant to clause (b) of the definition of Qualified Holdings
Preferred Stock, (B) Permitted Receivables Financing (subject to
Section 6.01(a)(ii)), (C) any lease financing permitted hereunder the
proceeds of which are not required to prepay Term Borrowings here-under,
(D) the issuance of Equity Interests by Holdings, (E) Excess Cash Flow
not required to be used to prepay Term Loans pursuant to Section 2.11(f),
(F) proceeds from sales of assets permitted by Section 6.05 that are
not required to be applied toward the repayment of Term Borrowings hereunder
or
(G) any combination thereof and (iv) immediately after giving effect
thereto, (A) no Default has occurred and is continuing or would result
there-from, (B) all transactions related thereto are consummated in all
material respects in accordance with applicable laws, (C) all the Equity
Interests (other than Assumed Preferred Stock) of each Subsidiary formed for
the
purpose of or resulting from such acquisition shall be owned directly by the
Parent Borrower or a Subsidiary and all actions required to be taken under
Sections 5.12 and 5.13 have been taken, (D) Holdings, the Parent
Borrower and its Subsidiaries are in compliance, on a pro forma basis after
giving effect to such acquisition, with the covenants contained in
Sections 6.13 and 6.14 recomputed as at the last day of the most recently
ended fiscal quarter of Holdings for which financial
30
statements
are available, as if such acquisition (and any related incurrence or repayment
of Indebtedness) had occurred on the first day of each relevant period for
testing such compliance (provided
that any
acquisition that occurs prior to the first testing period under such Sections
shall be deemed to have occurred during such first testing period), (E) any
Indebtedness or any preferred stock that is incurred, acquired or assumed in
connection with such acquisition shall be in compliance with Section 6.01
and (F) the Parent Borrower has delivered to the Administrative Agent an
officers' certificate to the effect set forth in clauses (i), (ii),
(iii) and (iv) (A) through (F) above, together with all
relevant financial information for the Person or assets to be
acquired.
"Permitted
Capital Expenditure Amount"
means
the sum of (i) the Base Amount for such fiscal year as specified below,
(ii) 20% of Acquired Assets (the "Acquired
Assets Amount")
and
(iii) for each fiscal year after any Acquired Assets Amount are initially
included in clause (ii) above, 5% of such Acquired Assets Amount,
calculated on a cumulative basis.
Fiscal
Year Ended
|
Base
Amount
|
2001
|
$120,000,000
|
2002
|
$115,000,000
|
2003
|
$100,000,000
|
2004
|
$110,000,000
|
2005
|
$115,000,000
|
2006
|
$80,000,000
|
2007
|
$90,000,000
|
2008
2009
|
$95,000,000
$95,000,000
|
"Permitted
Encumbrances"
means:
(a) Liens
imposed by law for taxes that are not yet due or are being contested in
compliance with Section 5.05;
(b) carriers',
warehousemen's, mechanics', materialmen's, repairmen's and other like Liens
imposed by law, arising in the ordinary course of business and securing
obligations that are not overdue by more than 30 days or are being
contested in compliance with Section 5.05;
(c) pledges
and deposits made in the ordinary course of business in compliance with workers'
compensation, unemployment insurance and other social security laws or
regulations;
31
(d) deposits
to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations
of
a like nature, in each case in the ordinary course of business;
(e)
judgment Liens in respect of judgments that do not constitute an Event of
Default under clause (k) of Article VII;
(f) easements,
zoning restrictions, rights-of-way and similar encumbrances on real property
imposed by law or arising in the ordinary course of business that do not secure
any monetary obligations and do not materially detract from the value of the
affected property or interfere with the ordinary conduct of business of the
Parent Borrower or any Subsidiary;
(g) ground
leases in respect of real property on which facilities owned or leased by the
Parent Borrower or any of the Subsidiaries are located, other than any Mortgaged
Property;
(h) Liens
in favor or customs and revenue authorities arising as a matter of law to secure
payment of customs duties in connection with the importation of goods in the
ordinary course of business;
(i)
Leases or subleases granted to other Persons and not interfering in any material
respect with the business of Holdings, the Parent Borrower and the Subsidiaries,
taken as a whole;
(j)
banker's liens, rights of set-off or similar rights, in each case arising by
operation of law; and
(k)
Liens
in favor of a landlord on leasehold improvements in leased
premises;
provided
that the
term "Permitted Encumbrances" shall not include any Lien securing
Indebtedness.
"Permitted
Investments"
means:
(a) direct
obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America (or by any
agency thereof to the extent such obligations are backed by the full faith
and
credit of the United States of America), in each case maturing within one
year from the date of acquisition thereof;
(b) investments
in commercial paper maturing within one year from the date of acquisition
thereof and having, at such date of acquisition, the highest credit rating
obtainable from S&P or from Xxxxx'x;
(c) investments
in certificates of deposit, banker's acceptances and time deposits maturing
within one year from the date of acquisition thereof issued or
32
guaranteed
by or placed with, and money market deposit accounts issued or offered by,
any
domestic office of any commercial bank organized under the laws of the
United States of America or any State thereof which has a combined capital
and surplus and undivided profits of not less than $500,000,000;
(d) fully
collateralized repurchase agreements with a term of not more than 30 days
for securities described in clause (a) above and entered into with a
financial institution satisfying the criteria described in clause (c)
above;
(e)
securities issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof
having maturities of not more than six months from the date of acquisition
thereof and, at the time of acquisition, having the highest credit rating
obtainable from S&P or from Xxxxx'x;
(f) securities
issued by any foreign government or any political subdivision of any foreign
government or any public instrumentality thereof having maturities of not more
than six months from the date of acquisition thereof and, at the time of
acquisition, having the highest credit rating obtainable from S&P or from
Xxxxx'x;
(g) investments
of the quality as those identified on Schedule 6.04 to the Original Credit
Agreement as "Qualified Foreign Investments" made in the ordinary course of
business;
(h) cash;
and
(i) investments
in funds that invest solely in one or more types of securities described in
clauses (a), (e) and (f) above.
"Permitted
Receivables Documents"
means
the Receivable Purchase Agreement, the Receivables Transfer Agreement and all
other documents and agreements relating to the Permitted Receivables
Financing.
"Permitted
Receivables Financing"
means
the sale by the Parent Borrower and certain Subsidiaries (other than Foreign
Subsidiaries) of accounts receivables (i)(a) to the Receivables Subsidiary
pursuant to the Receivables Sale Agreement and (b) the sale of such
accounts receivable (or participation therein) by the Receivables Subsidiary
to
certain purchasers pursuant to the Receivables Transfer Agreement and
(ii) directly (or indirectly through a special purpose subsidiary) to
third-parties pursuant to third-party financing agreements in transactions
constituting "true sales", provided
that the
aggregate net investment of the purchasers under the Receivables Transfer
Agreement and such third-party financing agreements in such accounts receivable
so sold by the Parent Borrower and such Subsidiaries shall not exceed in the
aggregate $175,000,000 and, provided further
that any
such receivables financing described in clause (ii) above shall be satisfactory
to the Administrative Agent and the administrative agent under the Receivables
Transfer Agreement.
33
"Permitted
Senior Notes"
means
any Indebtedness of Holdings or the Parent Borrower, provided
that
(a) to the extent such Indebtedness and any related Guarantees are secured
by any Lien, such Liens are second-priority Liens and the trustee or agent
thereunder shall have entered into the Intercreditor Agreement, (b) the
proceeds resulting from the initial $150,000,000 aggregate principal amount
of
such Indebtedness shall be used (i) to prepay Term Borrowings pursuant to
Section 2.11(a), (ii) to repurchase, redeem or otherwise retire the
Convertible Debentures, (iii) if such Indebtedness is incurred
contemporaneously with the New Castle Acquisition in order to effect the New
Castle Acquisition or (iv) any combination of the foregoing, (c) any
proceeds resulting from the aggregate principal amount of such Indebtedness
that
exceeds $150,000,000 shall be used to prepay Term Borrowings pursuant to
Section 2.11(d)(1), (d) such Indebtedness shall not have any principal
payments due prior to the date that is 12 months after the Tranche D
Maturity Date, whether at maturity or other-wise, except upon the occurrence
of
a change of control or similar event (including asset sales), in each case
so
long as the provisions relating to change of control or similar events
(including asset sales) included in the governing instrument of such
Indebtedness provide that the provisions of this Agreement must be satisfied
prior to the satisfaction of such provisions of such Indebtedness and
(d) such Indebtedness bears interest at a fixed rate, which rate shall be,
in the good faith judgment of the Parent Borrower's board of directors,
consistent with the market at the time of issuance for similar Indebtedness
for
comparable issuers or borrowers. The Parent Borrower may designate by notice
to
the Administrative Agent any Permitted Subordinated Notes as Permitted Senior
Notes so long as such notice is delivered immediately prior to the issuance
of
such Notes, and following such designation such Permitted Subordinated Notes
shall be "Permitted Senior Notes" for purposes of this Agreement.
"Permitted
Subordinated Notes"
means
Indebtedness of Holdings or the Parent Borrower, provided
that
(a) such Indebtedness and any related Guarantees shall not be secured by
any Lien, (b) such Indebtedness shall be subject to subordination and
inter-creditor provisions that are no more favorable to the holders or obligees
thereof than the subordination or inter-creditor provisions of the Existing
Subordinated Notes in any material respect, (c) the proceeds from such
Indebtedness shall be used (i) to repurchase, redeem, repay or otherwise retire
the Convertible Debentures, (ii) to repay (subject to
Section 6.01(a)(vii)) Revolving Borrowings or obligations arising in
respect of the Permitted Receivables Financing, (iii) to prepay Term
Borrowings pursuant to Section 2.11(a) or (iv) if after giving effect
to the incurrence of such Indebtedness, the Senior Leverage Ratio is less than
2.75 to 1.00, to effect Permitted Acquisitions (provided
that the
aggregate principal amount of Permitted Subordinated Notes that can be used
for
financing Permitted Acquisitions pursuant to this clause (iv) shall not
exceed $100,000,000, (d) such Indebtedness shall not have any principal
payments due prior to the date that is 12 months after the Tranche D
Maturity Date, whether at maturity or otherwise, except upon the occurrence
of a
change of control or similar event (including asset sales), in each case so
long
as the provisions relating to change of control or similar events (including
asset sales) included in the governing instrument of such Indebtedness provide
that the provisions of this Agreement must be satisfied prior to the
satisfaction of such provisions of such Indebtedness and (e) such
Indebtedness bears interest at a fixed rate, which rate shall be, in the good
faith judgment of the Parent Borrower's board of
34
directors,
consistent with the market at the time of issuance for similar Indebtedness
for
comparable issuers or borrowers. Notwithstanding the foregoing, for purposes
of
this Agreement, the Existing Subordinated Notes and the New Castle Seller Debt
shall be Permitted Subordinated Indebtedness.
"Person"
means
any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other
entity.
"Plan"
means
any employee pension benefit plan (other than a Multiemployer Plan) subject
to
the provisions of Title IV of ERISA or Section 412 of the Code or
Section 302 of ERISA, and in respect of which the Parent Borrower or any
ERISA Affiliate is (or, if such plan were terminated, would under
Section 4069 of ERISA be deemed to be) an "employer" as defined in
Section 3(5) of ERISA.
"Pledge
Agreement"
means
the Pledge Agreement, substantially in the form of Exhibit G, among
Holdings, the Parent Borrower, the Subsidiary Loan Parties party thereto and
the
Collateral Agent for the benefit of the Secured Parties.
"Pre-Merger
Stockholders"
means
the common stockholders of Holdings and holders of options to acquire common
stock of Holdings immediately prior to the Merger.
"Prepayment
Event"
means:
(a) any
sale,
transfer or other disposition (including pursuant to a sale and leaseback
transaction) of any property or asset of Holdings, the Parent Borrower or any
Subsidiary for consideration that exceeds $10,000,000, other than dispositions
described in clauses (a), (b), (c), (d), (e), (f)(ii), (f)(iii), (g), (h),
(i), (k), (l) and (m) of Section 6.05; or
(b) any
casualty or other insured damage to, or any taking under power of eminent domain
or by condemnation or similar proceeding of, any property or asset of Holdings,
the Parent Borrower or any Subsidiary having a book value or fair market value
in excess of $1,000,000 (other than damage arising from the Compac Event),
but
only to the extent that the Net Proceeds therefrom have not been applied to
repair, restore or replace such property or asset within 365 days after
such event; or
(c) the
incurrence by Holdings, the Parent Borrower or any Subsidiary of any
Indebtedness, other than Indebtedness permitted by Section 6.01(a);
or
(d) the
incurrence of any Permitted Senior Notes (unless the Net Proceeds thereof are
used as permitted by clause (b) under the defined term "Permitted Senior
Notes");
notwithstanding
anything to the contrary, the sale, transfer or other disposition of the Saturn
Subsidiary or the Saturn Sale shall not constitute a Prepayment
Event.
35
"Prime
Rate"
means
the rate of interest per annum publicly announced from time to time by Chase
as
its prime rate in effect at its principal office in New York City; each
change in the Prime Rate shall be effective from and including the date such
change is publicly announced as being effective.
"Qualified
Holdings Preferred Stock"
means
any preferred capital stock or preferred equity interest of Holdings
(a)(i) that does not provide for any cash dividend payments or other cash
distributions in respect thereof prior to the Tranche D Term Loan Maturity
Date and (ii) that by its terms (or by the terms of any security into which
it is convertible or for which it is exchangeable or exercisable) or upon the
happening of any event does not (A)(x) mature or become mandatorily
redeemable pursuant to a sinking fund obligation or otherwise; (y) become
convertible or exchangeable at the option of the holder thereof for Indebtedness
or preferred stock that is not Qualified Holdings Preferred Stock; or
(z) become redeemable at the option of the holder thereof (other than as a
result of a change of control event), in whole or in part, in each case on
or
prior to the first anniversary of the Tranche D Term Loan Maturity Date and
(B) provide holders thereunder with any rights upon the occurrence of a
"change of control" event prior to the repayment of the Obligations under the
Loan Documents or (b) with respect to which Holdings has delivered a notice
to the Administrative Agent that it has issued preferred stock or preferred
equity interest in lieu of incurring Indebtedness otherwise permitted by
clauses (vii) or (xv) under Section 6.01(a) and, in the case of
clause (vii), whether such preferred stock or preferred equity interests
relate to any Permitted Subordinated Notes or any Permitted Senior Notes, with
such notice specifying the applicable clause; provided
that
(i) the aggregate liquidation value of all such preferred stock or
preferred equity interest issued pursuant to this clause (b) shall not
exceed at any time the dollar limitation specified in such applicable clause,
less the aggregate principal amount of Indebtedness outstanding pursuant to
such
paragraph and (ii) the terms of such preferred stock or preferred equity
interests (x) shall provide that upon a default thereof, the remedies of
the holders thereof shall be limited to the right to additional representation
on the board of directors of Holdings and (y) shall otherwise be no less
favorable to the Lenders, in the aggregate, than the terms of any Indebtedness
that may be incurred pursuant to such paragraph.
"Quotation
Day"
means,
with respect to any Eurocurrency Borrowing denominated in a Foreign Currency
and
any Interest Period, the day on which it is market practice in the relevant
interbank market for prime banks to give quotations for deposits in the currency
of such Borrowing for delivery on the first day of such Interest Period. If
such
quotations would normally be given by prime banks on more than one day, the
Quotation Day will be the last of such days.
"Xxxxx
Sale and Leaseback"
shall
mean any sale or transfer by the Parent Borrower or any Subsidiary of fixed
or
capital assets of the Xxxxx facility that is made for cash consideration in
the
aggregate amount not less than an amount equal to 85% of the orderly liquidation
value of such fixed or capital assets not to exceed $30,000,000 in the aggregate
during the term of this Agreement, and promptly thereafter rented or leased
by
the Parent Borrower or such Subsidiary.
36
"Recapitalization"
means
the recapitalization of Holdings effected pursuant to the Merger as contemplated
by the Recapitalization Agreement.
"Recapitalization
Agreement"
means
the Recapitalization Agreement dated as of August 1, 2000, between Holdings
and Merger Subsidiary, as amended.
"Recapitalization
Date"
means
November 28, 2000.
"Recapitalization
Documents"
means
the Recapitalization Agreement and the other agreements and documents relating
to the Recapitalization Transactions.
"Recapitalization
Transactions"
means
(a) the Recapitalization, (b) the Specified Asset Sales, (c) the
Saturn Sale, (d) the Asset Dropdown, (e) the Restricted Stock Award
and the performance of the Restricted Stock Obligation, (f) the
Intercompany Transfer, (g) the payment of the Merger Consideration and the
Saturn Proceeds Distribution, (h) the issuance of the Holdings Preferred
Stock to Masco, (i) the repayment of certain Indebtedness, (j) the
Equity Rollover, (k) the execution of the Subordinated Loan Agreement dated
as of the Recapitalization Date between Masco and Holdings, as amended, by
the
parties thereto and (l) the other transactions contemplated by the
Recapitalization Agreement.
"Receivables
Purchase Agreement"
means
(a) the Receivables Purchase Agreement dated as of the Recapitalization
Date among the Receivables Subsidiary, Holdings, the Parent Borrower and the
Subsidiaries party thereto, related to the Permitted Receivables Financing,
as
may be amended, supplemented or otherwise modified to the extent permitted
by
Section 6.11 and (b) any agreement replacing such Receivables Purchase
Agreement, provided
that
such replacing agreement contains terms that are substantially similar to such
Receivables Purchase Agreement and that are otherwise no more adverse to the
Lenders than the applicable terms of such Receivables Purchase
Agreement.
"Receivables
Subsidiary"
means
MTSPC, Inc., a Delaware corporation, MRFC, Inc., a Delaware corporation, or
any
special purpose subsidiary referred to in clause (ii) of the definition
Permitted Receivables Financing.
"Receivables
Transfer Agreement"
means
(a) the Receivables Transfer Agreement dated as of the Recapitalization
Date, among the Receivables Subsidiary, Holdings and the purchasers party
thereto, relating to the Permitted Receivables Financing, as may be amended,
supplemented or otherwise modified to the extent permitted by Section 6.11
and (b) any agreement replacing such Receivables Transfer Agreement,
provided
that
such replacing agreement contains terms that are substantially similar to such
Receivables Transfer Agreement and that are otherwise no more adverse to the
Lenders than the applicable terms of such Receivables Transfer
Agreement.
"Register"
has the
meaning set forth in Section 10.04.
"Regulation
U"
shall
mean Regulation U of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.
37
"Regulation
X"
shall
mean Regulation X of the Board as from time to time in effect and all official
rulings and interpretations thereunder or thereof.
"Related
Parties"
means,
with respect to any specified Person, such Person's Affiliates and the
respective directors, officers, employees, agents and advisors of such Person
and such Person's Affiliates.
"Release"
means
any release, spill, emission, leaking, dumping, injection, pouring, deposit,
disposal, discharge, dispersal, leaching or migration into or through the
environment (including ambient air, surface water, groundwater, land surface
or
subsurface strata) or within any building, structure, facility or
fixture.
"Required
Lenders"
means,
at any time, Lenders having Revolving Exposures, Term Loans and unused
Commitments representing more than 50% of the sum of the total Revolving
Exposures, outstanding Term Loans and unused Commitments at such
time.
"Restatement
Effective Date"
shall
have the meaning specified in the Amendment and Restatement
Agreement.
"Restricted
Indebtedness"
means
Indebtedness of Holdings, the Parent Borrower or any Subsidiary, the payment,
prepayment, redemption, repurchase or defeasance of which is restricted under
Section 6.08(b).
"Restricted
Payment"
means
any dividend or other distribution (whether in cash, securities or other
property) with respect to any Equity Interests in Holdings, the Parent Borrower
or any Subsidiary (including the Receivables Subsidiary), or any payment
(whether in cash, securities or other property), including any sinking fund
or
similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancelation or termination of any Equity Interests in Holdings,
the
Parent Borrower or any Subsidiary (including the Receivables Subsidiary) or
any
option, warrant or other right to acquire any such Equity Interests in Holdings,
the Parent Borrower or any Subsidiary (including the Receivables
Subsidiary).
"Restricted
Stock Award"
means
the grant of restricted stock awards (including phantom restricted stock awards)
of Holdings in connection with the Recapitalization, having the terms set forth
in the Recapitalization Agreement, in substitution of restricted stock awards
(including phantom restricted stock awards) of Holdings existing immediately
prior to the Recapitalization Date.
"Restricted
Stock Obligation"
means
the obligation following the Recapitalization Date of Holdings to make deferred
cash payments in an aggregate amount not to exceed $47,500,000 over a
38 month period, plus (i) any accretion thereto and (ii) any
deferred payments required to be made in connection with the Saturn Sale, in
each case in accordance with the Recapitalization Agreement following the
Recapitalization Date, pursuant to the terms of the new restricted stock granted
pursuant to the Restricted Stock Award.
38
"Revolving
Availability Period"
means
the period from and including the Effective Date to but excluding the earlier
of
the Revolving Maturity Date and the date of termination of the Revolving
Commitments.
"Revolving
Commitment"
means,
with respect to each Lender, the commitment, if any, of such Lender to make
Revolving Loans, including Foreign Currency Loans, and to acquire participations
in Letters of Credit, including Foreign Currency Letters of Credit and Swingline
Loans hereunder, expressed as an amount representing the maximum aggregate
amount of such Lender's Revolving Exposure, including Foreign Currency Exposure,
hereunder, as such commitment may be (a) reduced from time to time pursuant
to Section 2.08 and (b) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 10.04. The initial amount
of each Lender's Revolving Commitment is set forth on Schedule 2.01, or in
the
Assignment and Acceptance pursuant to which such Lender shall have assumed
its
Revolving Commitment, as applicable. The initial aggregate amount of the
Lenders' Revolving Commitments is $200,000,000.
"Revolving
Exposure"
means,
with respect to any Lender at any time, the sum of the outstanding principal
amount of such Lender's Revolving Loans and its LC Exposure and Swingline
Exposure at such time.
"Revolving
Lender"
means a
Lender with a Revolving Commitment or, if the Revolving Commitments have
terminated or expired, a Lender with Revolving Exposure.
"Revolving
Loan"
means a
Loan made pursuant to clause (iii) of Section 2.01(a).
"Revolving
Maturity Date"
means
May 28, 2007, or, if such day is not a Business Day, the first Business Day
thereafter.
"S&P"
means
Standard & Poor's.
"Saturn"
means
Saturn Electronics and Engineering Inc. or any successor thereto by merger
or
otherwise.
"Saturn
Proceeds Distribution"
means
the cash payments to be made as a result of any Saturn Sale in an amount based
upon the net proceeds resulting from the Saturn Sale and determined in
accordance with and pursuant to the Recapitalization Agreement.
"Saturn
Sale"
means
one or more sales by the Saturn Subsidiary of any Equity Interests (or other
property received in respect thereof) in Saturn.
"Saturn
Subsidiary"
means a
special purpose wholly owned subsidiary of Holdings which will hold any Equity
Interests (or other property received in respect thereof) in Saturn pending
the
completion of the Saturn Sale and any other special purpose wholly owned
subsidiary of Holdings that holds any proceeds from the Saturn
39
Sale
not
required to be paid to Pre-Merger Stockholders or on account of taxes from
any
Saturn Sale.
"Secured
Parties"
has the
meaning assigned to such term in the Security Agreement.
"Security
Agreement"
means
the Security Agreement, substantially in the form of Exhibit H, among
Holdings, the Parent Borrower, the Subsidiary Loan Parties party thereto and
the
Collateral Agent for the benefit of the Secured Parties.
"Security
Documents"
means
the Security Agreement, the Pledge Agreement, the Mortgages, the Guarantee
Agreement, the Indemnity, Subrogation and Contribution Agreement, each Foreign
Security Document entered into pursuant to Section 2.21 and
Section 4.03 and each other security agreement or other instrument or
document executed and delivered pursuant to Section 5.12 or 5.13 to secure
any
of the Obligations.
"Senior
Indebtedness"
means
(a) the sum of Total Indebtedness plus the obligations outstanding under the
Permitted Receivables Financing minus (b) Subordinated Debt.
"Senior
Leverage Ratio"
means,
on any date, the ratio of (a) Senior Indebtedness as of such date to
(b) Consolidated EBITDA for the period of four consecutive fiscal quarters
of Holdings ended on such date (or, if such date is not the last day of a fiscal
quarter, ended on the last day of the fiscal quarter of Holdings most recently
ended prior to such date for which financial statements are
available).
"Senior
Secured Leverage Ratio"
means,
on any date, the ratio of (a) Senior Indebtedness as of such date that is
secured by any first-priority Lien to (b) Consolidated EBITDA for the
period of four consecutive fiscal quarters of Holdings ended on such date (or,
if such date is not the last day of a fiscal quarter, ended on the last day
of
the fiscal quarter of Holdings most recently ended prior to such date for which
financial statements are available).
"Shareholder
Agreement"
means
the Shareholders Agreement dated as of the Recapitalization Date, among
Holdings, Heartland and the other parties thereto, as amended from time to
time.
"Specified
Acquired Property"
means
any property, real or personal, (a) that is acquired pursuant to a
Permitted Acquisition or (b) that is owned by the Parent Borrower or any
Subsidiary immediately prior to such Permitted Acquisition and that is combined
with any such acquired property for purposes of any Acquisition Lease Financing,
provided
that the
fair value of the property described in this clause (b) shall not exceed in
the aggregate during the term of this Agreement, $25,000,000.
"Specified
Asset Sales"
means
the sale by Holdings of its equity investments in the Specified
Assets.
40
"Specified
Assets"
means
Advanced Accessories Systems LLC, Titan International Inc., Delco Remy
International Inc., MSX International Inc., Innovative Coatings Technology,
Inc., Qualitor, Inc. and Tower Automotive Inc.
"Specified
Cash"
means
the cash held by Holdings on the Recapitalization Date in an amount equal to
$3,700,000.
"Specified
Obligations"
means
Obligations consisting of the principal and interest on Loans, reimbursement
obligations in respect of LC Disbursements and fees.
"Specified
Prepayment Event"
means
any sale, transfer or other disposition constituting an Acquisition Lease
Financing.
"Statutory
Reserve Rate"
means a
fraction (expressed as a decimal), the numerator of which is the number one
and
the denominator of which is the number one minus the aggregate of the maximum
reserve percentages (including any marginal, special, emergency or supplemental
reserves) expressed as a decimal established by the Board (or in the case of
Foreign Currency Borrowings, the applicable Governmental Authority) to which
the
Administrative Agent is subject (a) with respect to the Base CD Rate, for
new negotiable nonpersonal time deposits in dollars of over $100,000 with
maturities approximately equal to three months and (b) with respect to the
Adjusted LIBO Rate, for eurocurrency funding (currently referred to as
"Eurocurrency Liabilities" in Regulation D of the Board). Such reserve
percentages shall include those imposed pursuant to such Regulation D.
Eurocurrency Loans shall be deemed to constitute eurocurrency funding and to
be
subject to such reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to any Lender
under any applicable law, rule or regulation. The Statutory Reserve Rate shall
be adjusted automatically on and as of the effective date of any change in
any
reserve percentage.
"Sterling"
or "£"
means the lawful money of the United Kingdom.
"Subordinated
Debt"
means,
without duplication, (a) the Convertible Debentures, (b) the Existing
Subordinated Notes and (c) any other subordinated Indebtedness of Holdings,
the Parent Borrower or any Subsidiary (including the Permitted Subordinated
Notes).
"Subordinated
Debt Documents"
means
(a) the Convertible Debentures Indenture, (b) the Existing
Subordinated Notes Documents and (c) any indenture or other instruments
under which any other Subordinated Debt is issued or incurred.
"subsidiary"
means,
with respect to any Person (the "parent")
at any
date, any corporation, limited liability company, partnership, association
or
other entity the accounts of which would be consolidated with those of the
parent in the parent's consolidated financial statements if such financial
statements were prepared in accordance with GAAP as of such date, as well as
any
other corporation, limited liability company, partnership, association or other
entity (a) of which securities or other ownership interests representing
more than 50% of the ordinary voting power or, in the
41
case
of a
partnership, more than 50% of the general partnership interests are, as of
such
date, owned, controlled or held, or (b) that is, as of such date, otherwise
Controlled, by the parent or one or more subsidiaries of the parent or by the
parent and one or more subsidiaries of the parent.
"Subsidiary"
means
any subsidiary of the Parent Borrower or Holdings, as the context requires,
including the Foreign Subsidiary Borrowers. Unless expressly otherwise provided,
the term "Subsidiary" shall not include (a) the Receivables Subsidiary, (b)
the
Saturn Subsidiary, (c) for so long as Acme Office Group, Inc. ("Acme") is
inactive, holds no assets and conducts no business, Acme and (d)
TriMas.
"Subsidiary
Loan Party"
means
(a) any Subsidiary that is not a Foreign Subsidiary (other than the Foreign
Subsidiary Borrowers) and (b) any Foreign Subsidiary Borrower and any other
Foreign Subsidiary that executes a guarantee agreement pursuant to
paragraph (c) of the Collateral and Guarantee Requirement.
"Supplemental
Indenture"
means
the supplement to the Convertible Debenture Indenture among the Parent Borrower,
Holdings and Xxxxxx Guaranty Trust Company of New York, as trustee,
pursuant to which the Parent Borrower will become a co-obligor (together with
Holdings) under Convertible Debenture Indenture.
"Swingline
Exposure"
means,
at any time, the aggregate principal amount of all Swingline Loans outstanding
at such time. The Swingline Exposure of any Lender at any time shall be its
Applicable Percentage of the total Swingline Exposure at such time.
"Swingline
Lender"
means
Chase, in its capacity as lender of Swingline Loans hereunder , and Comerica
Bank, in its capacity as lender of Swingline Loans hereunder. References herein
and in the other Loan Documents to the Swingline Lender shall be deemed to
refer
to the Swingline Lender in respect of the applicable Swingline Loan or to all
Swingline Lenders, as the context requires.
"Swingline
Loan"
means a
Loan made pursuant to Section 2.04.
"Synthetic
Purchase Agreement"
means
any swap, derivative or other agreement or combination of agreements pursuant
to
which Holdings, the Parent Borrower or a Subsidiary is or may become obligated
to make (i) any payment (other than in the form of Equity Interests of
Holdings) in connection with a purchase by a third party from a Person other
than Holdings, the Parent Borrower or a Subsidiary of any Equity Interest or
Restricted Indebtedness or (ii) any payment (other than on account of a
permitted purchase by it of any Equity Interest or any Restricted Indebtedness)
the amount of which is determined by reference to the price or value at any
time
of any Equity Interest or Restricted Indebtedness; provided
that no
Restricted Stock Award and no phantom stock or similar plan providing for
payments only to current or former directors, officers, consultants, advisors
or
employees of Holdings, the Parent Borrower or the Subsidiaries (or to their
heirs or estates) shall be deemed to be Synthetic Purchase
Agreement.
42
"Taxes"
means
any and all present or future taxes (of any nature whatsoever), levies, imposts,
duties, deductions, charges or withholdings imposed by any Governmental
Authority.
"Term
Loans"
means
Xxxxxxx X-0 Term Loans and Tranche D-2 Term Loans.
"Three-Month
Secondary CD Rate"
means,
for any day, the secondary market rate for three-month certificates of deposit
reported as being in effect on such day (or, if such day is not a Business
Day,
the next preceding Business Day) by the Board through the public information
telephone line of the Federal Reserve Bank of New York (which rate will,
under the current practices of the Board, be published in Federal Reserve
Statistical Release H.15(519) during the week following such day) or, if
such rate is not so reported on such day or such next preceding Business Day,
the average of the secondary market quotations for three-month certificates
of
deposit of major money center banks in New York City received at
approximately 10:00 a.m., New York City time, on such day (or, if such
day is not a Business Day, on the next preceding Business Day) by the
Administrative Agent from three negotiable certificate of deposit dealers of
recognized standing selected by it.
"Total
Indebtedness"
means,
as of any date, the sum of, without duplication, (a) the aggregate principal
amount of Indebtedness of Holdings, the Parent Borrower and the Subsidiaries
outstanding as of such date, in the amount that would be reflected on a balance
sheet prepared as of such date on a consolidated basis in accordance with GAAP,
plus (b) the aggregate principal amount of Indebtedness of Holdings, the Parent
Borrower and the Subsidiaries outstanding as of such date that is not required
to be reflected on a balance sheet in accordance with GAAP, determined on a
consolidated basis, plus (c) obligations arising in respect of the
Permitted Receivables Financing; provided
that,
for purposes of clause (b) above, the term "Indebtedness" shall not include
(i)
contingent obligations of Holdings, the Parent Borrower or any Subsidiary as
an
account party in respect of any letter of credit or letter of guaranty unless,
without duplication, such letter of credit or letter of guaranty supports an
obligation that constitutes Indebtedness and (ii) Indebtedness described in
Section 6.01(a)(xiv); and provided further
that
"Total Indebtedness" shall not include (i) the Convertible Debentures to
the extent that a redemption notice has been delivered in respect thereof and
proceeds sufficient to effect such redemption have deposited with the trustee
or
agent thereof and (ii) the TriMas Notes.
"Tranche
D Commitment"
means,
with respect to each Lender, the commitment, if any, of such Lender to
(a) make a Tranche D-1 Term Loan hereunder on the Effective Date or
(b) make a Xxxxxxx X-0 Term Loan on the Restatement Effective Date, in
each case expressed as an amount representing the maximum principal amount
of
the Tranche D Term Loan to be made by such Lender hereunder, as such commitment
may be (a) reduced from time to time pursuant to Section 2.08 and
(b) reduced or increased from time to time pursuant to assignments by or to
such Lender pursuant to Section 10.04. The initial amount of each Lender's
Tranche D Commitment is set forth
43
on
Schedule 2.01, or in the Assignment and Acceptance pursuant to which such
Lender shall have assumed its Tranche D Commitment, as applicable.
"Tranche
D Lender"
means a
Xxxxxxx X-0 Lender or a Tranche D-2 Lender.
"Tranche
D Maturity Date"
means
December 31, 2009, or if such day is not a Business Day, the first Business
Day thereafter.
"Tranche
D Term Loan"
means a
Xxxxxxx X-0 Term Loan or a Tranche D-2 Term Loan.
"Tranche
D-1 Term Loan"
means a
Loan made on the Effective Date pursuant to clause (i) of Section
2.01(a).
"Tranche
D-1 Lender"
means a
Lender with a Xxxxxxx X-0 Commitment or an outstanding Tranche D-1 Term
Loan.
"Tranche
D-2 Term Loan"
means a
Loan made on the Restatement Effective Date pursuant to clause (ii) of Section
2.01(a).
"Tranche
D-2 Lender"
means a
Lender with a Xxxxxxx X-0 Commitment or an outstanding Xxxxxxx X-0 Term
Loan.
"Transactions"
means
(a) the execution, delivery and performance by each Loan Party of the Loan
Documents to which it is to be a party, the borrowing of Loans, the use of
the
proceeds thereof and the issuance of Letters of Credit hereunder and
(b) the other transactions contemplated hereby.
"TriMas"
means
TriMas Corporation, a Delaware corporation.
"TriMas
Affiliate Agreements"
means
the Stock Purchase Agreement, the Corporate Services Agreement, the Warrant,
the
Shareholders Agreement and each agreement and transaction contemplated by any
of
the foregoing and entered into in connection with the TriMas
Transactions.
"TriMas
Available Proceeds"
means
the Net Proceeds received by the Parent Borrower from the TriMas Transaction,
less the TriMas Specified Proceeds.
"TriMas
Interest"
means,
at any time, the Equity Interest of TriMas held by the Parent Borrower or any
Subsidiary.
"TriMas
Notes"
means
the senior subordinated notes of TriMas issued in contemplation of the TriMas
Transaction.
"TriMas
Specified Proceeds"
means
the Net Proceeds received by the Parent Borrower from the TriMas Transaction
in
an amount equal to the sum of (x) $255,000,000 and (y) the amount by
which obligations under the Permitted
44
Receivables
Financing are required to be repaid in connection with the reduction of
borrowing base capacity thereunder as a result of the TriMas
Transaction.
"TriMas
Transaction"
means
the transactions contemplated by the Stock Purchase Agreement dated as of
May 17, 2002 among Holdings, the Parent Borrower and Heartland Industrial
Partners, L.P. and the related documentation.
"Type",
when
used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined
by reference to the Adjusted LIBO Rate or the Alternate Base Rate.
"Withdrawal
Liability"
means
liability to a Multiemployer Plan as a result of a complete or partial
withdrawal from such Multiemployer Plan, as such terms are defined in
Part I of Subtitle E of Title IV of ERISA.
SECTION
1.02. Classification
of Loans and Borrowings.
For
purposes of this Agreement, Loans may be classified and referred to by Class
(e.g.,
a
"Revolving Loan") or by Type (e.g.,
a
"Eurocurrency Loan") or by Class and Type (e.g.,
a
"Eurocurrency Revolving Loan"). Borrowings also may be classified and referred
to by Class (e.g.,
a
"Revolving Borrowing") or by Type (e.g.,
a
"Eurocurrency Borrowing") or by Class and Type (e.g.,
a
"Eurocurrency Revolving Borrowing").
SECTION
1.03. Terms
Generally.
The
definitions of terms herein shall apply equally to the singular and plural
forms
of the terms defined. Whenever the context may require, any pronoun shall
include the corresponding masculine, feminine and neuter forms. The words
"include", "includes" and "including" shall be deemed to be followed by the
phrase "without limitation". The word "will" shall be construed to have the
same
meaning and effect as the word "shall". Unless the context requires otherwise
(a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument
or
other document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications
set forth herein), (b) any reference herein to any Person shall be
construed to include such Person's successors and assigns, (c) the words
"herein", "hereof" and "hereunder", and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any particular
provision hereof, (d) all references herein to Articles, Sections, Exhibits
and Schedules shall be construed to refer to Articles and Sections of, and
Exhibits and Schedules to, this Agreement and (e) the words "asset" and
"property" shall be construed to have the same meaning and effect and to refer
to any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights.
SECTION
1.04. Accounting
Terms; GAAP.
Except
as otherwise expressly provided herein, all terms of an accounting or financial
nature shall be construed in accordance with GAAP, as in effect from time to
time; provided
that, if
the Parent Borrower notifies the Administrative Agent that the Parent Borrower
requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof
on
the operation of such provision
45
(or
if
the Administrative Agent notifies the Parent Borrower that the Required Lenders
request an amendment to any provision hereof for such purpose), regardless
of
whether any such notice is given before or after such change in GAAP or in
the
application thereof, then such provision shall be interpreted on the basis
of
GAAP as in effect and applied immediately before such change shall have become
effective until such notice shall have been withdrawn or such provision amended
in accordance herewith.
SECTION
1.05. Exchange
Rates.
(a) Not later than 1:00 p.m., New York City time, on each
Calculation Date beginning with the date on which the initial Foreign Currency
Borrowing is made or the initial Foreign Currency Letter of Credit is issued,
the Administrative Agent shall (i) determine the Exchange Rate as of such
Calculation Date with respect to each Foreign Currency and (ii) give notice
thereof to the Revolving Lenders and the Parent Borrower (on behalf of itself
and the Foreign Subsidiary Borrowers). The Exchange Rates so determined shall
become effective on the first Business Day immediately following the relevant
Calculation Date (a "Recalculation
Date"),
shall
remain effective until the next succeeding Recalculation Date, and shall for
all
purposes of this Agreement (other than Section 9.01, Section 10.14 or
any other provision expressly requiring the use of a current Exchange Rate)
be
the Exchange Rates employed in converting any amounts between dollars and
Foreign Currencies.
(b) Not
later
than 5:00 p.m., New York City time, on each Recalculation Date and
each date on which Revolving Loans denominated in any Foreign Currency are
made,
the Administrative Agent shall (i) determine the aggregate amount of the
Dollar Equivalents of (A) the principal amounts of the Foreign Currency
Loans then outstanding (after giving effect to any Foreign Currency Loans made
or repaid on such date) (B) the face value of outstanding Foreign Currency
Letters of Credit and (C) unreimbursed drawings in respect of Foreign
Currency Letters of Credit and (ii) notify the Revolving Lenders and the
Parent Borrower (on behalf of itself and the Foreign Subsidiary Borrowers)
of
the results of such determination.
SECTION
1.06. Redenomination
of Certain Foreign Currencies.
(a)
Each obligation of any party to this Agreement to make a payment
denominated in the national currency unit of any member state of the European
Union that adopts the Euro as its lawful currency after the date hereof shall
be
redenominated into Euro at the time of such adoption (in accordance with the
EMU
Legislation). If, in relation to the currency of any such member state, the
basis of accrual of interest expressed in this Agreement in respect of that
currency shall be inconsistent with any convention or practice in the London
Interbank Market for the basis of accrual of interest in respect of the Euro,
such expressed basis shall be replaced by such convention or practice with
effect from the date on which such member state adopts the Euro as its lawful
currency; provided
that if
any Foreign Currency Borrowing in the currency of such member state is
outstanding immediately prior to such date, such replacement shall take effect,
with respect to such Foreign Currency Borrowing, at the end of the then current
Interest Period.
(b) Each
provision of this Agreement shall be subject to such reasonable changes of
construction as the Administrative Agent may from time to time
46
specify
to be appropriate to reflect the adoption of the Euro by any member state of
the
European Union and any relevant market conventions or practices relating to
the
Euro.
ARTICLE
II
The
Credits
SECTION
2.01. Commitments.
(a) (i) Each Xxxxxxx X-0 Lender made a Xxxxxxx X-0 Term Loan to
the Parent Borrower on the Effective Date in a principal amount not exceeding
its Tranche D-1 Commitment, (ii) subject to the terms and conditions set
forth herein and in the Amendment and Restatement Agreement, each Xxxxxxx X-0
Lender agrees to make a Xxxxxxx X-0 Term Loan to the Parent Borrower on the
Restatement Effective Date in a principal amount not exceeding its Xxxxxxx
X-0
Commitment and (iii) each Lender agrees to make Revolving Loans to the
Parent Borrower and the Foreign Subsidiary Borrowers, as the case may be, from
time to time during the Revolving Availability Period in an aggregate principal
amount that will not result in such Lender's (A) Revolving Exposure
exceeding such Lender's Revolving Commitment or (B) Foreign Currency
Exposure exceeding such Lender's Foreign Currency Commitment.
(b) Within
the foregoing limits and subject to the terms and conditions set forth herein,
the Parent Borrower and the Foreign Subsidiary Borrowers, as the case may be,
may borrow, prepay and reborrow Revolving Loans. Amounts repaid in respect
of
Term Loans may not be reborrowed.
SECTION
2.02. Loans
and Borrowings.
(a) Each Loan (other than a Swingline Loan) shall be made as part of
a Borrowing consisting of Loans of the same Class and Type made by the Lenders
ratably in accordance with their respective Commitments of the applicable Class.
The failure of any Lender to make any Loan required to be made by it shall
not
relieve any other Lender of its obligations hereunder; provided
that the
Commitments of the Lenders are several and no Lender shall be responsible for
any other Lender's failure to make Loans as required.
(b) Subject
to Section 2.14, each Revolving Borrowing (other than Foreign Currency
Borrowings) and Term Borrowing shall be comprised entirely of ABR Loans or
Eurocurrency Loans as the Parent Borrower may request in accordance herewith;
provided
that all
Borrowings made on the Effective Date must be made as ABR Borrowings. All
Foreign Currency Borrowings shall be comprised entirely of Eurocurrency Loans.
Each Swingline Loan shall be an ABR Loan. Each Lender at its option may make
any
Eurocurrency Loan by causing any domestic or foreign branch or Affiliate of
such
Lender to make such Loan; provided
that any
exercise of such option shall not affect the obligation of any Borrower to
repay
such Loan in accordance with the terms of this Agreement.
(c) At
the
commencement of each Interest Period for any Eurocurrency Borrowing, such
Borrowing shall be in an aggregate amount that is an
47
integral
multiple of $1,000,000 (or 1,000,000 units of the applicable Foreign Currency)
and not less than $5,000,000 (or 5,000,000 units in the applicable Foreign
Currency. At the time that each ABR Revolving Borrowing is made, such Borrowing
shall be in an aggregate amount that is an integral multiple of $1,000,000
and
not less than $5,000,000; provided
that
(i) an ABR Revolving Borrowing may be in an aggregate amount that is equal
to the entire unused balance of the total Revolving Commitments and (ii) an
ABR Revolving Borrowing or a Eurocurrency Revolving Borrowing, in the case
of
Foreign Currency Letters of Credit, may be in an aggregate amount that is equal
to the amount that is required to finance the reimbursement of an LC
Disbursement as contemplated by Section 2.05(e). Each Swingline Loan shall
be in
an amount that is an integral multiple of $100,000 and not less than $500,000.
Borrowings of more than one Type and Class may be outstanding at the same time;
provided
that
there shall not at any time be more than a total of 12 Eurocurrency Borrowings
outstanding.
(d) Notwithstanding
any other provision of this Agreement, none of the Parent Borrower or any
Foreign Subsidiary Borrower shall be entitled to request, or to elect to convert
or continue, any Borrowing if the Interest Period requested with respect thereto
would end after the Revolving Maturity Date or the Tranche D Maturity Date,
as
applicable.
SECTION
2.03. Requests
for Borrowings.
To
request a Revolving Borrowing or Term Borrowing, the Parent Borrower or, in
the
case of a Foreign Currency Borrowing, the applicable Foreign Subsidiary
Borrower, shall notify the Administrative Agent of such request by telephone
(a) in the case of a Eurocurrency Borrowing, not later than
12:00 noon, New York City time, three Business Days before the
date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not
later than 12:00 noon, New York City time, one Business Day
before the date of the proposed Borrowing; provided
that any
such notice of an ABR Revolving Borrowing to finance the reimbursement of an
LC
Disbursement as contemplated by Section 2.05(e) may be given not later than
10:00 a.m., New York City time, on the date of the proposed Borrowing.
Each such telephonic Borrowing Request shall be irrevocable and shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent
of a
written Borrowing Request in a form approved by the Administrative Agent and
signed by the Parent Borrower and, in the case of a Foreign Currency Borrowing,
the applicable Foreign Subsidiary Borrower. Each such telephonic and written
Borrowing Request shall specify the following information in compliance with
Section 2.02:
(i)
whether the requested Borrowing is to be a Revolving Borrowing or a Tranche
D
Term Borrowing;
(ii)
the
aggregate amount of such Borrowing;
(iii)
the
date of such Borrowing, which shall be a Business Day;
(iv)
whether such Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing,
unless such Borrowing is a Foreign Currency Borrowing;
48
(v)
if
such Borrowing is a Foreign Currency Borrowing, the relevant Foreign
Currency;
(vi)
in
the case of a Eurocurrency Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the definition
of
the term "Interest Period"; and
(vii)
the
location and number of the Parent Borrower's or the applicable Foreign
Subsidiary Borrower's, as the case may be, account to which funds are to be
disbursed, which shall comply with the requirements of Section
2.06.
If
no
election as to the Type of Borrowing is specified, then the requested Borrowing
shall be an ABR Borrowing, unless such Borrowing is a Foreign Currency
Borrowing, in which case such Borrowing shall be a Eurocurrency Borrowing.
If no
Interest Period is specified with respect to any requested Eurocurrency
Revolving Borrowing, then the Parent Borrower shall be deemed to have selected
an Interest Period of one month's duration. Promptly following receipt of a
Borrowing Request in accordance with this Section, the Administrative Agent
shall advise each Lender of the details thereof and of the amount of such
Lender's Loan to be made as part of the requested Borrowing.
SECTION
2.04. Swingline
Loans.
(a) Subject to the terms and conditions set forth herein, the
Swingline Lender agrees to make Swingline Loans to the Parent Borrower from
time
to time during the Revolving Availability Period, in an aggregate principal
amount at any time outstanding that will not result in (i) the aggregate
principal amount of outstanding Swingline Loans exceeding $50,000,000 or
(ii) the sum of the total Revolving Exposures exceeding the total Revolving
Commitments; provided
that the
Swingline Lender shall not be required to make a Swingline Loan to refinance
an
outstanding Swingline Loan. Within the foregoing limits and subject to the
terms
and conditions set forth herein, the Parent Borrower may borrow, prepay and
reborrow Swingline Loans.
(b) To
request a Swingline Loan, the Parent Borrower shall notify the Administrative
Agent of such request by telephone (confirmed by telecopy), not later than
12:00 noon, New York City time, on the day of a proposed Swingline
Loan. Each such notice shall be irrevocable and shall specify the requested
date
(which shall be a Business Day) and amount of the requested Swingline Loan.
The
Administrative Agent will promptly advise the Swingline Lender of any such
notice received from the Parent Borrower. The Swingline Lender shall make each
Swingline Loan available to the Parent Borrower by means of a credit to the
general deposit account of the Parent Borrower with the Swingline Lender (or,
in
the case of a Swingline Loan made to finance the reimbursement of an LC
Disbursement as provided in Section 2.05(e), by remittance to the Issuing
Bank) by 3:00 p.m., New York City time, on the requested date of such
Swingline Loan.
(c) The
Swingline Lender may by written notice given to the Administrative Agent not
later than 12:00 noon, New York City time, on any Business Day require
the Revolving Lenders to acquire participations on such Business Day in all
49
or
a
portion of the Swingline Loans outstanding. Such notice shall specify the
aggregate amount of Swingline Loans in which Revolving Lenders will participate.
Promptly upon receipt of such notice, the Administrative Agent will give notice
thereof to each Revolving Lender, specifying in such notice such Lender's
Applicable Percentage of such Swingline Loan or Loans. Each Revolving Lender
hereby absolutely and unconditionally agrees, upon receipt of notice as provided
above, to pay to the Administrative Agent, for the account of the Swingline
Lender, such Lender's Applicable Percentage of such Swingline Loan or Loans.
Each Revolving Lender acknowledges and agrees that its obligation to acquire
participations in Swingline Loans pursuant to this paragraph is absolute and
unconditional and shall not be affected by any circumstance whatsoever,
including the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made without
any offset, abatement, withholding or reduction whatsoever (provided
that
such payment shall not cause such Lender's Revolving Exposure to exceed such
Lender's Revolving Commitment). Each Revolving Lender shall comply with its
obligation under this paragraph by wire transfer of immediately available funds,
in the same manner as provided in Section 2.06 with respect to Loans made
by such Lender (and Section 2.06 shall apply, mutatis mutandis,
to the
payment obligations of the Revolving Lenders), and the Administrative Agent
shall promptly pay to the Swingline Lender the amounts so received by it from
the Revolving Lenders. The Administrative Agent shall notify the Parent Borrower
of any participations in any Swingline Loan acquired pursuant to this paragraph,
and thereafter payments in respect of such Swingline Loan shall be made to
the
Administrative Agent and not to the Swingline Lender. Any amounts received
by
the Swingline Lender from the Parent Borrower (or other party on behalf of
the
Parent Borrower) in respect of a Swingline Loan after receipt by the Swingline
Lender of the proceeds of a sale of participations therein shall be promptly
remitted to the Administrative Agent; any such amounts received by the
Administrative Agent shall be promptly remitted by the Administrative Agent
to
the Revolving Lenders that shall have made their payments pursuant to this
paragraph and to the Swingline Lender, as their interests may appear. The
purchase of participations in a Swingline Loan pursuant to this paragraph shall
not relieve the Parent Borrower of any default in the payment
thereof.
SECTION
2.05. Letters
of Credit.
(a) General.
Subject
to the terms and conditions set forth herein, the Parent Borrower may request
the issuance of Letters of Credit for its own account or the account of a
Subsidiary and any Foreign Subsidiary Borrower may request the issuance of
Foreign Currency Letters of Credit for its own account or the account of a
Subsidiary of such Foreign Subsidiary Borrower, in each case in a form
reasonably acceptable to the Administrative Agent and the Issuing Bank, at
any
time and from time to time during the Revolving Availability Period
(provided
that the
Parent Borrower or a Foreign Subsidiary Borrower, as the case may be, shall
be a
co-applicant with respect to each Letter of Credit issued for the account of
or
in favor of a Subsidiary that is not a Foreign Subsidiary Borrower). In the
event of any inconsistency between the terms and conditions of this Agreement
and the terms and conditions of any form of letter of credit application or
other agreement submitted by the Parent Borrower or any Foreign Subsidiary
Borrower, as the case may be, to, or entered into by the Parent Borrower or
any
Foreign Subsidiary Borrower, as the case may be, with, the Issuing
50
Bank
relating to any Letter of Credit, the terms and conditions of this Agreement
shall control.
(b) Notice
of Issuance, Amendment, Renewal, Extension; Certain Conditions.
To
request the issuance of a Letter of Credit (or the amendment, renewal or
extension of an outstanding Letter of Credit), the Parent Borrower or the
applicable Foreign Subsidiary Borrower, as the case may be, shall hand deliver
or telecopy (or transmit by electronic communication, if arrangements for doing
so have been approved by the Issuing Bank) to the Issuing Bank and the
Administrative Agent (reasonably in advance of the requested date of issuance,
amendment, renewal or extension) a notice requesting the issuance of a Letter
of
Credit, or identifying the Letter of Credit to be amended, renewed or extended,
and specifying the date of issuance, amendment, renewal or extension (which
shall be a Business Day), the date on which such Letter of Credit is to expire
(which shall comply with paragraph (c) of this Section), the amount of such
Letter of Credit, the name and address of the beneficiary thereof and such
other
information as shall be necessary to prepare, amend, renew or extend such Letter
of Credit. If requested by the Issuing Bank, the Parent Borrower or the
applicable Foreign Subsidiary Borrower, as the case may be, also shall submit
a
letter of credit application on the Issuing Bank's standard form in connection
with any request for a Letter of Credit. A Letter of Credit shall be issued,
amended, renewed or extended only if (and upon issuance, amendment, renewal
or
extension of each Letter of Credit the Parent Borrower or the applicable Foreign
Subsidiary Borrower, as the case may be, shall be deemed to represent and
warrant that), after giving effect to such issuance, amendment, renewal or
extension (i) the LC Exposure shall not exceed $95,000,000 (provided
that no
more than $20,000,000 of LC Exposure may be used to support Indebtedness
incurred outside of the United States), (ii) the total Revolving Exposures
shall not exceed the total Revolving Commitments and (iii) the total
Foreign Currency Exposures shall not exceed the total Foreign Currency
Commitments.
(c) Expiration
Date.
Each
Letter of Credit shall expire at or prior to the close of business on the
earlier of (i) the date one year after the date of the issuance of such
Letter of Credit (or, in the case of any renewal or extension thereof, one
year
after such renewal or extension) and (ii) the date that is five Business
Days prior to the Revolving Maturity Date.
(d) Participations.
By the
issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing
the amount thereof) and without any further action on the part of the Issuing
Bank or the Lenders, the Issuing Bank hereby grants to each Revolving Lender,
and each Revolving Lender hereby acquires from the Issuing Bank, a participation
in such Letter of Credit equal to such Lender's Applicable Percentage of the
aggregate amount available to be drawn under such Letter of Credit. In
consideration and in furtherance of the foregoing, each Revolving Lender hereby
absolutely and unconditionally agrees to pay to the Administrative Agent, for
the account of the Issuing Bank, such Lender's Applicable Percentage of each
LC
Disbursement made by the Issuing Bank and not reimbursed by the Parent Borrower
or the applicable Foreign Subsidiary Borrower, as the case may be, on the date
due as provided in paragraph (e) of this Section, or of any reimbursement
payment required to be refunded to the Parent
51
Borrower
or the applicable Foreign Subsidiary Borrower, as the case may be, for any
reason. Each Lender acknowledges and agrees that its obligation to acquire
participations pursuant to this paragraph in respect of Letters of Credit is
absolute and unconditional and shall not be affected by any circumstance
whatsoever, including any amendment, renewal or extension of any Letter of
Credit or the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made without
any offset, abatement, withholding or reduction whatsoever.
(e) Reimbursement.
If the
Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit,
the Parent Borrower or the applicable Foreign Subsidiary Borrower, as the case
may be, shall reimburse such LC Disbursement by paying to the Administrative
Agent an amount equal to such LC Disbursement not later than 12:00 noon,
New York City time, on the date that such LC Disbursement is made, if the
Parent Borrower or the applicable Foreign Subsidiary Borrower, as the case
may
be, shall have received notice of such LC Disbursement prior to 10:00 a.m.,
New York City time or London time (in the case of Foreign Currency Letters
of Credit), on such date, or, if such notice has not been received by the Parent
Borrower or the applicable Foreign Subsidiary Borrower, as the case may be,
prior to such time on such date, then not later than 12:00 noon,
New York City time or London time (in the case of Foreign Currency Letters
of Credit), on (i) the Business Day that the Parent Borrower or the
applicable Foreign Subsidiary Borrower, as the case may be, receives such
notice, if such notice is received prior to 10:00 a.m., New York City
time or London time (in the case of Foreign Currency Letters of Credit), on
the
day of receipt, or (ii) the Business Day immediately following the day that
the
Parent Borrower or the applicable Foreign Subsidiary Borrower, as the case
may
be, receives such notice, if such notice is not received prior to such time
on
the day of receipt; provided
that
(i) the Parent Borrower may, subject to the conditions to borrowing set
forth herein, request in accordance with Section 2.03 or 2.04 that such payment
be financed with an ABR Revolving Borrowing or Swingline Loan in an equivalent
amount and, to the extent so financed, the Parent Borrower's obligation to
make
such payment shall be discharged and replaced by the resulting ABR Revolving
Borrowing or Swingline Loan and (ii) such Foreign Subsidiary Borrower may,
subject to the conditions to borrowing set forth herein, request in accordance
with Section 2.03 that such payment be financed with a Eurocurrency Revolving
Borrowing in an equivalent amount in the applicable Foreign Currency and, to
the
extent so financed, such Foreign Subsidiary Borrower's obligation to make such
payment shall be discharged and replaced by the resulting Eurocurrency Revolving
Borrowing. If the Parent Borrower or the applicable Foreign Subsidiary Borrower,
as the case may be, fails to make such payment when due, the Administrative
Agent shall notify each Revolving Lender of the applicable LC Disbursement,
the
payment then due from the Parent Borrower or the applicable Foreign Subsidiary
Borrower, as the case may be, in respect thereof and such Lender's Applicable
Percentage thereof. Promptly following receipt of such notice, each Revolving
Lender shall pay to the Administrative Agent its Applicable Percentage of the
unreimbursed LC Disbursement in the same manner as provided in Section 2.06
with respect to Loans made by such Lender (and Section 2.06 shall apply,
mutatis mutandis,
to the
payment obligations of the Revolving Lenders), and the Administrative Agent
shall promptly pay to the Issuing Bank the amounts so received
52
by
it
from the Revolving Lenders. Promptly following receipt by the Administrative
Agent of any payment from the Parent Borrower or any applicable Foreign
Subsidiary Borrower, as the case may be, pursuant to this paragraph, the
Administrative Agent shall distribute such payment to the Issuing Bank or,
to
the extent that Revolving Lenders have made payments pursuant to this paragraph
to reimburse the Issuing Bank, then to such Lenders and the Issuing Bank as
their interests may appear. Any payment made by a Revolving Lender pursuant
to
this paragraph to reimburse the Issuing Bank for any LC Disbursement (other
than
the funding of ABR Revolving Loans or a Swingline Loan as contemplated above)
shall not constitute a Loan and shall not relieve the Parent Borrower or any
applicable Foreign Subsidiary Borrower, as the case may be, of its obligation
to
reimburse such LC Disbursement.
(f) Obligations
Absolute.
The
obligation of the Parent Borrower or any Foreign Subsidiary Borrower to
reimburse LC Disbursements as provided in paragraph (e) of this Section
shall be absolute, unconditional and irrevocable, and shall be performed
strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of (i) any lack of validity or
enforceability of any Letter of Credit or this Agreement, or any term or
provision therein, (ii) any draft or other document presented under a
Letter of Credit proving to be forged, fraudulent or invalid in any respect
or
any statement therein being untrue or inaccurate in any respect,
(iii) payment by the Issuing Bank under a Letter of Credit against
presentation of a draft or other document that does not comply with the terms
of
such Letter of Credit, or (iv) any other event or circumstance whatsoever,
whether or not similar to any of the foregoing, that might, but for the
provisions of this Section, constitute a legal or equitable discharge of, or
provide a right of setoff against, the obligations of the Parent Borrower or
any
Foreign Subsidiary Borrower hereunder. Neither the Administrative Agent, the
Lenders nor the Issuing Bank, nor any of their Related Parties, shall have
any
liability or responsibility by reason of or in connection with the issuance
or
transfer of any Letter of Credit or any payment or failure to make any payment
thereunder (irrespective of any of the circumstances referred to in the
preceding sentence), or any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under
or
relating to any Letter of Credit (including any document required to make a
drawing thereunder), any error in interpretation of technical terms or any
consequence arising from causes beyond the control of the Issuing Bank;
provided
that the
foregoing shall not be construed to excuse the Issuing Bank from liability
to
the Parent Borrower or any applicable Foreign Subsidiary Borrower, as the case
may be, to the extent of any direct damages (as opposed to consequential
damages, claims in respect of which are hereby waived by the Parent Borrower
or
any applicable Foreign Subsidiary Borrower, as the case may be, to the extent
permitted by applicable law) suffered by the Parent Borrower or any applicable
Foreign Subsidiary Borrower, as the case may be, that are caused by the Issuing
Bank's failure to exercise care when determining whether drafts and other
documents presented under a Letter of Credit comply with the terms thereof.
The
parties hereto expressly agree that, in the absence of gross negligence or
wilful misconduct on the part of the Issuing Bank (as finally determined by
a
court of competent jurisdiction), the Issuing Bank shall be deemed to have
exercised care in each such determination. In furtherance of the foregoing
and
without limiting the generality thereof, the parties agree that, with respect
to
documents presented which appear on their
53
face
to
be in substantial compliance with the terms of a Letter of Credit, the Issuing
Bank may, in its sole discretion, either accept and make payment upon such
documents without responsibility for further investigation, regardless of any
notice or information to the contrary, or refuse to accept and make payment
upon
such documents if such documents are not in strict compliance with the terms
of
such Letter of Credit.
(g) Disbursement
Procedures.
The
Issuing Bank shall, promptly following its receipt thereof, examine all
documents purporting to represent a demand for payment under a Letter of Credit.
The Issuing Bank shall promptly notify the Administrative Agent and the Parent
Borrower or any applicable Foreign Subsidiary Borrower, as the case may be,
by
telephone (confirmed by telecopy) of such demand for payment and whether the
Issuing Bank has made or will make an LC Disbursement thereunder; provided
that any
failure to give or delay in giving such notice shall not relieve the Parent
Borrower or any applicable Foreign Subsidiary Borrower, as the case may be,
of
its obligation to reimburse the Issuing Bank and the Revolving Lenders with
respect to any such LC Disbursement (other than with respect to the timing
of
such reimbursement obligation set forth in Section 2.05(e)).
(h) Interim
Interest.
If the
Issuing Bank shall make any LC Disbursement, then, unless the Parent Borrower
or
any applicable Foreign Subsidiary Borrower, as the case may be, shall reimburse
such LC Disbursement in full on the date such LC Disbursement is made, the
unpaid amount thereof shall bear interest, for each day from and including
the
date such LC Disbursement is made to but excluding the date that the Parent
Borrower or any applicable Foreign Subsidiary Borrower, as the case may be,
reimburses such LC Disbursement, at the rate per annum then applicable to ABR
Revolving Loans; provided
that, if
the Parent Borrower or any applicable Foreign Subsidiary Borrower, as the case
may be, fails to reimburse such LC Disbursement when due pursuant to
paragraph (e) of this Section, then Section 2.13(c) shall apply.
Interest accrued pursuant to this paragraph shall be for the account of the
Issuing Bank, except that interest accrued on and after the date of payment
by
any Revolving Lender pursuant to paragraph (e) of this Section to reimburse
the
Issuing Bank shall be for the account of such Lender to the extent of such
payment.
(i) Replacement
of the Issuing Bank; Additional Issuing Banks.
The
Issuing Bank may be replaced at any time by written agreement among the Parent
Borrower (on behalf of itself and the Foreign Subsidiary Borrowers), the
Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank.
One or more Lenders may be appointed as additional Issuing Banks by written
agreement among the Parent Borrower (on behalf of itself and the Foreign
Subsidiary Borrowers), the Administrative Agent (whose consent will not be
unreasonably withheld) and the Lender that is to be so appointed. The
Administrative Agent shall notify the Lenders of any such replacement of the
Issuing Bank or any such additional Issuing Bank. At the time any such
replacement shall become effective, the Parent Borrower (on behalf of itself
and
the Foreign Subsidiary Borrowers) shall pay all unpaid fees accrued for the
account of the replaced Issuing Bank pursuant to Section 2.12(b). From and
after
the effective date of any such replacement or addition, as applicable,
(i) the successor or additional Issuing Bank shall have all the rights and
obligations of the Issuing Bank under this Agreement with respect
54
to
Letters of Credit to be issued thereafter and (ii) references herein to the
term
"Issuing Bank" shall be deemed to refer to such successor or such addition
or to
any previous Issuing Bank, or to such successor or such addition and all
previous Issuing Banks, as the context shall require. After the replacement
of
an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto
and shall continue to have all the rights and obligations of an Issuing Bank
under this Agreement with respect to Letters of Credit issued by it prior to
such replacement, but shall not be required to issue additional Letters of
Credit. If at any time there is more than one Issuing Bank hereunder, the Parent
Borrower (on behalf of itself and the Foreign Subsidiary Borrowers) may, in
its
discretion, select which Issuing Bank is to issue any particular Letter of
Credit.
(j) Cash
Collateralization.
If any
Event of Default shall occur and be continuing, on the Business Day that the
Parent Borrower or any Foreign Subsidiary Borrower receives notice from the
Administrative Agent or the Required Lenders (or, if the maturity of the Loans
has been accelerated, Revolving Lenders with LC Exposure representing greater
than 50% of the total LC Exposure) demanding the deposit of cash collateral
pursuant to this paragraph, the Parent Borrower and the Foreign Subsidiary
Borrowers, as the case may be, shall deposit in an account with the
Administrative Agent, in the name of the Administrative Agent and for the
benefit of the Lenders, an amount in cash in the applicable currency equal
to
the LC Exposure as of such date plus any accrued and unpaid interest thereon;
provided
that the
obligation to deposit such cash collateral shall become effective immediately,
and such deposit shall become immediately due and payable, without demand or
other notice of any kind, upon the occurrence of any Event of Default with
respect to the Parent Borrower or any Foreign Subsidiary Borrower described
in
clause (h) or (i) of Article VII. Each such deposit shall be held
by the Administrative Agent as collateral for the payment and performance of
the
obligations of the Parent Borrower and the Foreign Subsidiary Borrower under
this Agreement. The Administrative Agent shall have exclusive dominion and
control, including the exclusive right of withdrawal, over such account. Other
than any interest earned on the investment of such deposits, which investments
shall be made at the option and sole discretion of the Administrative Agent
and
at the risk and expense of the Parent Borrower and the Foreign Subsidiary
Borrower, such deposits shall not bear interest. Interest or profits, if any,
on
such investments shall accumulate in such account. Moneys in such account shall
be applied by the Administrative Agent to reimburse the Issuing Bank for LC
Disbursements for which it has not been reimbursed and, to the extent not so
applied, shall be held for the satisfaction of the reimbursement obligations
of
the Parent Borrower and the Foreign Subsidiary Borrower for the LC Exposure
at
such time or, if the maturity of the Loans has been accelerated (but subject
to
the consent of Revolving Lenders with LC Exposure representing greater than
50%
of the total LC Exposure), be applied to satisfy other obligations of the Parent
Borrower and the Foreign Subsidiary Borrower under this Agreement. If the Parent
Borrower or any Foreign Subsidiary Borrower is required to provide an amount
of
cash collateral hereunder as a result of the occurrence of an Event of Default,
such amount plus any accrued interest or realized profits of such amounts (to
the extent not applied as aforesaid) shall be returned to the Parent Borrower
or
such Foreign Subsidiary Borrower within three Business Days after all Events
of
Default have been cured or waived. If the Parent Borrower is required to provide
an amount of such collateral hereunder pursuant to Section 2.11(b), such
amount plus any accrued interest or
55
realized
profits on account of such amount (to the extent not applied as aforesaid)
shall
be returned to the Parent Borrower as and to the extent that, after giving
effect to such return, the Parent Borrower would remain in compliance with
Section 2.11(b) and no Default or Event of Default shall have occurred and
be continuing.
SECTION
2.06. Funding
of Borrowings.
(a) Each Lender shall make each Loan to be made by it hereunder on
the proposed date thereof by wire transfer of immediately available funds by
12:00 noon, New York City time, or in the case of Foreign Currency
Borrowings, London time, to the account of the Administrative Agent most
recently designated by it for such purpose by notice to the Lenders;
provided
that
Swingline Loans shall be made as provided in Section 2.04. The
Administrative Agent will make such Loans available to the Parent Borrower
or
the applicable Foreign Subsidiary Borrower, as the case may be, by promptly
crediting the amounts so received, in like funds, to an account of the Parent
Borrower or such Foreign Subsidiary Borrower, as the case may be, maintained
with the Administrative Agent in New York City, or in the case of Foreign
Currency Borrowings, London, and designated by the Parent Borrower or such
Foreign Subsidiary Borrower, in the applicable Borrowing Request; provided
that ABR
Revolving Loans made to finance the reimbursement of an LC Disbursement as
provided in Section 2.05(e) shall be remitted by the Administrative Agent to
the
Issuing Bank.
(b) Unless
the Administrative Agent shall have received notice from a Lender prior to
the
proposed date of any Borrowing that such Lender will not make available to
the
Administrative Agent such Lender's share of such Borrowing, the Administrative
Agent may assume that such Lender has made such share available on such date
in
accordance with paragraph (a) of this Section and may, in reliance upon
such assumption, make available to the Parent Borrower or the applicable Foreign
Subsidiary Borrower, as the case may be, a corresponding amount. In such event,
if a Lender has not in fact made its share of the applicable Borrowing available
to the Administrative Agent, then the applicable Lender and the Parent Borrower
or the applicable Foreign Subsidiary Borrower, as the case may be, severally
agree to pay to the Administrative Agent forthwith on demand such corresponding
amount with interest thereon, for each day from and including the date such
amount is made available to the Parent Borrower or the applicable Foreign
Subsidiary Borrower, as the case may be, to but excluding the date of payment
to
the Administrative Agent, at (i) in the case of such Lender, the greater of
(x) the Federal Funds Effective Rate and (y) a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation, except with respect to Foreign Currency Borrowings, the applicable
rate shall be determined as specified in clause (y) above, or (ii) in the
case of the Parent Borrower or any Foreign Subsidiary Borrower, the interest
rate applicable to ABR Loans. If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender's Loan
included in such Borrowing.
SECTION
2.07. Interest
Elections.
(a) Each Revolving Borrowing and Term Borrowing initially shall be of
the Type specified in the applicable Borrowing Request and, in the case of
a
Eurocurrency Borrowing, shall have an initial Interest Period as specified
in
such Borrowing Request. Thereafter, the Parent Borrower or the
56
applicable
Foreign Subsidiary Borrower, as the case may be, may elect to convert such
Borrowing to a different Type or to continue such Borrowing and, in the case
of
a Eurocurrency Borrowing, may elect Interest Periods therefor, all as provided
in this Section. The Parent Borrower or the applicable Foreign Subsidiary
Borrower, as the case may be, may elect different options with respect to
different portions of the affected Borrowing, in which case each such portion
shall be allocated ratably among the Lenders holding the Loans comprising such
Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing. This Section shall not apply to Swingline Borrowings, which
may not be converted or continued.
(b) To
make
an election pursuant to this Section, the Parent Borrower or the applicable
Foreign Subsidiary Borrower, as the case may be, shall notify the Administrative
Agent of such election by telephone by the time that a Borrowing Request would
be required under Section 2.03 if the Parent Borrower or the applicable Foreign
Subsidiary Borrower, as the case may be, were requesting a Revolving Borrowing
or Term Borrowing of the Type resulting from such election to be made on the
effective date of such election. Each such telephonic Interest Election Request
shall be irrevocable and shall be confirmed promptly by hand delivery or
telecopy to the Administrative Agent of a written Interest Election Request
in a
form approved by the Administrative Agent and signed by the Parent Borrower
or
the applicable Foreign Subsidiary Borrower, as the case may be.
(c) Each
telephonic and written Interest Election Request shall specify the following
information in compliance with Section 2.02:
(i)
the
Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the
portions thereof to be allocated to each resulting Borrowing (in which case
the
information to be specified pursuant to clauses (iii) and (iv) below shall
be
specified for each resulting Borrowing);
(ii)
the
effective date of the election made pursuant to such Interest Election Request,
which shall be a Business Day;
(iii)
whether the resulting Borrowing is to be an ABR Borrowing or a Eurocurrency
Borrowing; and
(iv)
if
the resulting Borrowing is a Eurocurrency Borrowing, the Interest Period to
be
applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term "Interest Period".
If
any
such Interest Election Request requests a Eurocurrency Borrowing but does not
specify an Interest Period, then the Parent Borrower or the applicable Foreign
Subsidiary Borrower, as the case may be, shall be deemed to have selected an
Interest Period of one month's duration.
57
(d) Promptly
following receipt of an Interest Election Request, the Administrative Agent
shall advise each Lender of the details thereof and of such Lender's portion
of
each resulting Borrowing.
(e) If
an
Interest Election Request with respect to a Eurocurrency Borrowing is not timely
delivered prior to the end of the Interest Period applicable thereto, then,
unless such Borrowing is repaid as provided herein, at the end of such Interest
Period such Borrowing shall be converted to an ABR Borrowing (unless such
Borrowing is a Foreign Currency Borrowing, in which case such Borrowing shall
become due and payable on the last day of such Interest Period). Notwithstanding
any contrary provision hereof, if an Event of Default has occurred and is
continuing and the Administrative Agent, at the request of the Required Lenders,
so notifies the Parent Borrower (on behalf of itself and the Foreign Subsidiary
Borrowers), then, so long as an Event of Default is continuing (i) no
outstanding Borrowing (other than a Foreign Currency Borrowing) may be converted
to or continued as a Eurocurrency Borrowing and (ii) unless repaid, each
Eurocurrency Borrowing (other than a Foreign Currency Borrowing) shall be
converted to an ABR Borrowing at the end of the Interest Period applicable
thereto.
SECTION
2.08. Termination
and Reduction of Commitments.
(a)
Unless previously terminated, (i) the Xxxxxxx X-0 Commitments shall
terminate at 5:00 p.m., New York City time, on the Effective Date,
(ii) the Xxxxxxx X-0 Commitments shall terminate at 5:00 p.m.,
New York City time, on the Restatement Effective Date and (iii) the
Revolving Commitments shall terminate on the Revolving Maturity
Date.
(b) The
Parent Borrower (on behalf of itself and the Foreign Subsidiary Borrowers)
may
at any time terminate, or from time to time reduce, the Commitments of any
Class
(it being understood that reductions of Revolving Commitments will automatically
reduce Foreign Currency Commitments on a pro rata basis); provided
that (i)
each reduction of the Commitments of any Class shall be in an amount that is
an
integral multiple of $1,000,000 and not less than $5,000,000 and (ii) the
Revolving Commitments shall not be terminated or reduced if, after giving effect
to any concurrent prepayment of the Revolving Loans in accordance with Section
2.11, the sum of the Revolving Exposures would exceed the total Revolving
Commitments. In addition, in the event the proceeds from Permitted Senior Notes
issued after the Amendment Date are used to repurchase, redeem or otherwise
retire then outstanding Convertible Debentures, immediately following such
repurchase, redemption or retirement (i) the Parent Borrower shall make any
prepayment required pursuant to Section 2.11 as a result of such reduction
and (ii) the total Revolving Commitments shall be automatically reduced in
an amount equal to the amount used to effect such repurchase, redemption or
retirement (together with a pro rata reduction of Foreign Currency Commitments)
without any action on the part of any party, provided
that,
the total reduction to the Revolving Commitments under this clause (ii)
shall not exceed $50,000,000.
(c) The
Parent Borrower (on behalf of itself and the Foreign Subsidiary Borrowers)
shall
notify the Administrative Agent of any election to terminate
58
or
reduce
the Commitments under paragraph (b) of this Section at least three Business
Days prior to the effective date of such termination or reduction, specifying
such election and the effective date thereof. Promptly following receipt of
any
notice, the Administrative Agent shall advise the Lenders of the contents
thereof. Each notice delivered by the Parent Borrower (on behalf of itself
and
the Foreign Subsidiary Borrowers) pursuant to this Section shall be irrevocable;
provided
that a
notice of termination of the Revolving Commitments delivered by the Parent
Borrower (on behalf of itself and the Foreign Subsidiary Borrowers) may state
that such notice is conditioned upon the effectiveness of other credit
facilities or the occurrence of another transaction, in which case such notice
may be revoked by the Parent Borrower (on behalf of itself and the Foreign
Subsidiary Borrowers) (by notice to the Administrative Agent on or prior to
the
specified effective date) if such condition is not satisfied. Any termination
or
reduction of the Commitments of any Class shall be permanent. Each reduction
of
the Commitments of any Class shall be made ratably among the Lenders in
accordance with their respective Commitments of such Class.
SECTION
2.09. Repayment of
Loans; Evidence of Debt.
(a) The Parent Borrower and each Foreign Subsidiary Borrower (with
respect to Foreign Currency Loans made to such Foreign Subsidiary Borrower)
hereby unconditionally promises to pay (i) to the Administrative Agent for
the account of each Lender the then unpaid principal amount of each Revolving
Loan of such Lender on the Revolving Maturity Date, (ii) to the Administrative
Agent for the account of each Lender the then unpaid principal amount of each
Term Loan of such Lender as provided in Section 2.10 and (iii) to the Swingline
Lender the then unpaid principal amount of each Swingline Loan on the earlier
of
the Revolving Maturity Date and the first date after such Swingline Loan is
made
that is the 15th or last day of a calendar month and is at least two Business
Days after such Swingline Loan is made; provided
that on
each date that a Revolving Borrowing (other than a Foreign Currency Borrowing)
is made, the Parent Borrower shall repay all Swingline Loans that were
outstanding on the date such Borrowing was requested.
(b) Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing the indebtedness of the Parent Borrower and the Foreign
Subsidiary Borrowers to such Lender resulting from each Loan made by such
Lender, including the amounts of principal and interest payable and paid to
such
Lender from time to time hereunder.
(c) The
Administrative Agent shall maintain accounts in which it shall record
(i) the amount of each Loan made hereunder, the Class and Type thereof and
the Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Parent Borrower
and the Foreign Subsidiary Borrowers to each Lender hereunder and (iii) the
amount of any sum received by the Administrative Agent hereunder for the account
of the Lenders and each Lender's share thereof.
(d) The
entries made in the accounts maintained pursuant to paragraph (b)
or (c) of this Section shall be prima facie
evidence
of the existence and
59
amounts
of the obligations recorded therein; provided
that the
failure of any Lender or the Administrative Agent to maintain such accounts
or
any error therein shall not in any manner affect the obligation of the Parent
Borrower and the Foreign Subsidiary Borrowers to repay the Loans in accordance
with the terms of this Agreement.
(e) Any
Lender may request that Loans of any Class made by it be evidenced by a
promissory note. In such event, the Parent Borrower or the applicable Foreign
Subsidiary Borrower, as the case may be, shall prepare, execute and deliver
to
such Lender a promissory note payable to the order of such Lender (or, if
requested by such Lender, to such Lender and its registered assigns) and in
a
form approved by the Administrative Agent. Thereafter, the Loans evidenced
by
such promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 10.04) be represented by one or more
promissory notes in such form payable to the order of the payee named therein
(or, if such promissory note is a registered note, to such payee and its
registered assigns).
SECTION
2.10. Amortization
of Term Loans.
(a) Subject
to adjustment pursuant to paragraph (c) of this Section, the Parent
Borrower shall repay Tranche D Term Borrowings on each date set forth below
in
the aggregate principal amount set forth opposite such date:
Date
|
Amount
|
December
31, 2002
|
$500,000
|
June
30, 2003
|
$500,000
|
December
31, 2003
|
$500,000
|
June
30, 2004
|
$500,000
|
December
31, 2004
|
$500,000
|
June
30, 2005
|
$500,000
|
December
31, 2005
|
$500,000
|
June
30, 2006
|
$525,000
|
December
31, 2006
|
$525,000
|
June
30, 2007
|
$525,000
|
December
31, 2007
|
$525,000
|
June
30, 2008
|
$525,000
|
December
31, 2008
|
$525,000
|
June
30, 2009
|
$525,000
|
Tranche D
Maturity Date
|
$442,825,000
|
(b) To
the
extent not previously paid, all Tranche D Term Loans shall be due and payable
on
the Tranche D Maturity Date.
60
(c) Any
prepayment of a Term Borrowing shall be applied to reduce the subsequent
scheduled repayments of the Term Borrowings to be made pursuant to this Section
ratably. Notwithstanding the foregoing, any prepayment of Eurocurrency Term
Borrowings made pursuant to Section 2.11(a) on a date that is (x) the
last day of an Interest Period and (y) no more than five days prior to a
scheduled amortization payment pursuant to this Section shall be applied, first,
to reduce such scheduled payment, and any excess shall be applied as required
by
the first sentence of this Section 2.10(c).
(d) Prior
to
any repayment of any Term Borrowings hereunder, the Parent Borrower shall select
the Borrowing or Borrowings to be repaid and shall notify the Administrative
Agent by telephone (confirmed by telecopy) of such selection not later than
11:00 a.m., New York City time, three Business Days before the
scheduled date of such repayment. Each repayment of a Borrowing shall be applied
ratably to the Loans included in the repaid Borrowing. Repayments of Term
Borrowings shall be accompanied by accrued interest on the amount
repaid.
SECTION
2.11. Prepayment
of Loans.
(a) The Parent Borrower and the Foreign Subsidiary Borrowers, as the
case may be, shall have the right at any time and from time to time to prepay
any Borrowing in whole or in part, subject to the requirements of this
Section.
(b) In
the
event and on such occasion that the sum of the Revolving Exposures exceeds
the
total Revolving Commitments, the Parent Borrower and the Foreign Subsidiary
Borrowers, as the case may be, shall prepay Revolving Borrowings or Swingline
Borrowings (or, if no such Borrowings are outstanding, deposit cash collateral
in an account with the Administrative Agent pursuant to Section 2.05(j)) in
an aggregate amount equal to such excess.
(c) In
the
event that the sum of the Foreign Currency Exposures exceeds (i) 105% of
the total Foreign Currency Commitments solely as a result of currency
fluctuations or (ii) the total Foreign Currency Commitments (other than as
a result of currency fluctuations), the Foreign Subsidiary Borrowers shall
prepay Foreign Currency Borrowings (or if no such Borrowings are outstanding,
deposit cash collateral in an account with the Administrative Agent pursuant
to
Section 2.05(j)) in an amount equal to the amount by which the sum of
Foreign Currency Exposures exceed the total Foreign Currency Commitments no
later than in the case of clause (i) above the next Interest Payment Date
and in the case of clause (ii), the first Business Day that such excess
exists.
(d) (1)
In
the event and on each occasion that any Net Proceeds are received by or on
behalf of Holdings, the Parent Borrower or any Subsidiary in respect of any
Prepayment Event (other than TriMas Available Proceeds and TriMas Specified
Proceeds), the Parent Borrower shall, within three Business Days after such
Net
Proceeds are received, prepay Term Borrowings in an aggregate amount equal
to
such Net Proceeds.
61
(2)
In
the event that $205,000,000 of the TriMas Specified Proceeds are not
applied to repurchase, redeem, repay or otherwise retire the Convertible
Debentures or an irrevocable notice of redemption and deposit of such proceeds
has not been delivered to the trustee thereunder within 90 days of the date
that the TriMas Transaction is consummated, the Parent Borrower shall promptly
thereafter apply the amount of TriMas Specified Proceeds not so used to prepay
Term Borrowings.
(e) In
the
event and on each occasion that any Net Proceeds are received by or on behalf
of
Holdings, the Parent Borrower or any Subsidiary in respect of any Specified
Prepayment Event, the Parent Borrower shall, within three Business Days after
such Net Proceeds are received, prepay Term Borrowings in an aggregate amount
equal to such Net Proceeds.
(f) Following
the end of each fiscal year of the Parent Borrower, commencing with the fiscal
year ending December 31, 2001, the Parent Borrower shall prepay Term
Borrowings in an aggregate amount equal to 75% of Excess Cash Flow for such
fiscal year; provided
that
such percentage shall be reduced from 75% to 50% with respect to the prepayment
under this paragraph (f), if the Parent Borrower's Leverage Ratio as of the
last fiscal quarter preceding the applicable prepayment date is less than 3.00
to 1.00. Each prepayment pursuant to this paragraph shall be made on or before
the date on which financial statements are delivered pursuant to Section 5.01
with respect to the fiscal year for which Excess Cash Flow is being calculated
(and in any event within 95 days after the end of such fiscal
year).
(g) Prior
to
any optional or mandatory prepayment of Borrowings hereunder, the Parent
Borrower (on behalf of itself and the Foreign Subsidiary Borrowers) shall select
the Borrowing or Borrowings to be prepaid and shall specify such selection
in
the notice of such prepayment pursuant to paragraph (h) of this
Section.
(h) The
Parent Borrower (on behalf of itself and the Foreign Subsidiary Borrowers)
shall
notify the Administrative Agent (and, in the case of prepayment of a Swingline
Loan, the Swingline Lender) by telephone (confirmed by telecopy) of any
prepayment hereunder (i) in the case of prepayment of a Eurocurrency
Borrowing, not later than 12:00 noon, New York City time, three
Business Days before the date of prepayment, (ii) in the case of prepayment
of
an ABR Borrowing, not later than 12:00 noon, New York City time, one
Business Day before the date of prepayment or (iii) in the case of prepayment
of
a Swingline Loan, not later than 12:00 noon, New York City time, on
the date of prepayment. Each such notice shall be irrevocable and shall specify
the prepayment date, the principal amount of each Borrowing or portion thereof
to be prepaid and, in the case of a mandatory prepayment, a reasonably detailed
calculation of the amount of such prepayment; provided
that, if
a notice of optional prepayment is given in connection with a conditional notice
of termination of the Revolving Commitments as contemplated by
Section 2.08, then such notice of prepayment may be revoked if such notice
of termination is revoked in accordance with Section 2.08. Promptly
following receipt of any such notice (other than a notice relating solely to
Swingline Loans), the Administrative Agent shall advise the Lenders of the
contents thereof. Each partial prepayment of any Borrowing shall be in an amount
that
62
would
be
permitted in the case of an advance of a Borrowing of the same Type as provided
in Section 2.02, except as necessary to apply fully the required amount of
a
mandatory prepayment. Each prepayment of a Borrowing shall be applied ratably
to
the Loans included in the prepaid Borrowing. Prepayments shall be accompanied
by
accrued interest to the extent required by Section 2.13.
SECTION
2.12. Fees.
(a) The Parent Borrower (on behalf of itself and the Foreign
Subsidiary Borrowers) agrees to pay to the Administrative Agent for the account
of each Lender a commitment fee, which shall accrue at the Applicable Rate
on
the average daily unused amount of each Commitment of such Lender during the
period from and including the Effective Date to but excluding the date on which
such Commitment terminates. Accrued commitment fees shall be payable in arrears
(i) in the case of commitment fees in respect of the Revolving Commitments,
on the last day of March, June, September and December of each year and on
the
date on which the Revolving Commitments terminate, commencing on the first
such
date to occur after the date hereof and (ii) in the case of commitment fees
in respect of the Tranche D Term Commitments, on the Effective Date or any
earlier date on which such Commitments terminate. All commitment fees shall
be
computed on the basis of a year of 360 days and shall be payable for the
actual number of days elapsed (including the first day but excluding the last
day). For purposes of computing commitment fees with respect to Revolving
Commitments, a Revolving Commitment of a Lender shall be deemed to be used
to
the extent of the outstanding Revolving Loans and LC Exposure of such Lender
(and the Swingline Exposure of such Lender shall be disregarded for such
purpose).
(b) The
Parent Borrower (on behalf of itself and the Foreign Subsidiary Borrowers)
agrees to pay (i) to the Administrative Agent for the account of each
Revolving Lender a participation fee with respect to its participations in
Letters of Credit, which shall accrue at the same Applicable Rate as interest
on
Eurocurrency Revolving Loans on the average daily amount of such Lender's LC
Exposure (excluding any portion thereof attributable to unreimbursed LC
Disbursements) during the period from and including the Effective Date to but
excluding the later of the date on which such Lender's Revolving Commitment
terminates and the date on which such Lender ceases to have any LC Exposure,
and
(ii) to the Issuing Bank a fronting fee, which shall accrue at the rate of
0.25%
per annum on the average daily amount of the LC Exposure (excluding any portion
thereof attributable to unreimbursed LC Disbursements) during the period from
and including the Effective Date to but excluding the later of the date of
termination of the Revolving Commitments and the date on which there ceases
to
be any LC Exposure, as well as the Issuing Bank's standard fees with respect
to
the issuance, amendment, renewal or extension of any Letter of Credit or
processing of drawings thereunder. Participation fees and fronting fees accrued
through and including the last day of March, June, September and December of
each year shall be payable on the third Business Day following such last day,
commencing on the first such date to occur after the Effective Date;
provided
that all
such fees shall be payable on the date on which the Revolving Commitments
terminate and any such fees accruing after the date on which the Revolving
Commitments terminate shall be payable on demand. Any other fees payable to
the
Issuing Bank pursuant to this paragraph shall be payable within 10 days
after demand. All participation fees and fronting fees shall be computed on
the
basis of a
63
year
of
360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).
(c) The
Parent Borrower (on behalf of itself and the Foreign Subsidiary Borrowers)
agrees to pay to the Administrative Agent, for its own account, fees payable
in
the amounts and at the times separately agreed upon between the Parent Borrower
and the Administrative Agent.
(d) All
fees
payable hereunder shall be paid on the dates due, in immediately available
funds, to the Administrative Agent (or to the Issuing Bank, in the case of
fees
payable to it) for distribution, in the case of commitment fees and
participation fees, to the Lenders entitled thereto. Fees paid shall not be
refundable under any circumstances.
SECTION
2.13. Interest.
(a) The Loans comprising each ABR Borrowing (including each
Swingline Loan) shall bear interest at the Alternate Base Rate plus the
Applicable Rate.
(b) The
Loans
comprising each Eurocurrency Borrowing shall bear interest at the Adjusted
LIBO
Rate for the Interest Period in effect for such Borrowing plus the Applicable
Rate.
(c) Notwithstanding
the foregoing, if any principal of or interest on any Loan or any fee or other
amount payable by the Parent Borrower or the Foreign Subsidiary Borrowers,
as
the case may be, hereunder is not paid when due, whether at stated maturity,
upon acceleration or otherwise, such overdue amount shall bear interest, after
as well as before judgment, at a rate per annum equal to (i) in the case of
overdue principal of any Loan, 2% plus the rate otherwise applicable to such
Loan as provided in the preceding paragraphs of this Section or (ii) in the
case
of any other amount, 2% plus the rate applicable to ABR Revolving Loans as
provided in paragraph (a) of this Section.
(d) Accrued
interest on each Loan shall be payable in arrears on each Interest Payment
Date
for such Loan and, in the case of Revolving Loans, upon termination of the
Revolving Commitments; provided
that
(i) interest accrued pursuant to paragraph (c) of this Section shall
be payable on demand, (ii) in the event of any repayment or prepayment of any
Loan (other than a prepayment of an ABR Revolving Loan prior to the end of
the
Revolving Availability Period), accrued interest on the principal amount repaid
or prepaid shall be payable on the date of such repayment or prepayment and
(iii) in the event of any conversion of any Eurocurrency Loan prior to the
end
of the current Interest Period therefor, accrued interest on such Loan shall
be
payable on the effective date of such conversion.
(e) All
interest hereunder shall be computed on the basis of a year of 360 days,
except that (i) interest on a Foreign Currency Borrowing denominated in
Sterling and (ii) interest computed by reference to the Alternate Base Rate
at times when the Alternate Base Rate is based on the Prime Rate shall be
computed on the basis of a year of 365 days (or 366 days in a leap
year), and in each case shall be payable for the
64
actual
number of days elapsed (including the first day but excluding the last day).
The
applicable Alternate Base Rate or Adjusted LIBO Rate shall be determined by
the
Administrative Agent, and such determination shall be conclusive absent manifest
error.
SECTION
2.14. Alternate
Rate of Interest.
If prior
to the commencement of any Interest Period for a Eurocurrency Borrowing
denominated in any currency:
(a)
the
Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for ascertaining
the Adjusted LIBO Rate for such Interest Period; or
(b)
the
Administrative Agent is advised by the Required Lenders that the Adjusted LIBO
Rate for such Interest Period will not adequately and fairly reflect the cost
to
such Lenders of making or maintaining their Loans included in such Borrowing
for
such Interest Period;
then
the
Administrative Agent shall give notice thereof to the Parent Borrower (on behalf
of itself and the Foreign Subsidiary Borrowers) and the Lenders by telephone
or
telecopy as promptly as practicable thereafter and, until the Administrative
Agent notifies the Parent Borrower (on behalf of itself and the Foreign
Subsidiary Borrowers) and the Lenders that the circumstances giving rise to
such
notice no longer exist, (i) any Interest Election Request that requests the
conversion of any Borrowing denominated in such currency to, or continuation
of
any Borrowing denominated in such currency as, a Eurocurrency Borrowing shall
be
ineffective, and any Eurocurrency Borrowing denominated in such currency that
is
requested to be continued (A) if such currency is the dollar, shall be
converted to an ABR Borrowing on the last day of the Interest Period applicable
thereto and (B) if such currency is a Foreign Currency, shall be repaid on
the last day of the Interest Period applicable thereto and (ii) if any Borrowing
Request requests a Eurocurrency Borrowing denominated in such currency
(A) if such currency is the dollar, such Borrowing shall be made as an ABR
Borrowing and (B) if such currency is a Foreign Currency, such Borrowing
Request shall be ineffective.
SECTION
2.15. Increased
Costs.
(a) If any Change in Law shall:
(i)
impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit
extended by, any Lender (except any such reserve requirement reflected in the
Adjusted LIBO Rate) or the Issuing Bank; or
(ii)
impose on any Lender or the Issuing Bank or the London interbank market any
other condition affecting this Agreement or Eurocurrency Loans made by such
Lender or any Letter of Credit or participation therein;
and
the
result of any of the foregoing shall be to increase the cost to such Lender
of
making or maintaining any Eurocurrency Loan (or of maintaining its obligation
to
make any such Loan) or to increase the cost to such Lender or the Issuing Bank
of participating in, issuing or maintaining any Letter of Credit or to reduce
the amount of any sum
65
received
or receivable by such Lender or the Issuing Bank hereunder (whether of
principal, interest or otherwise), then the Parent Borrower or the applicable
Foreign Subsidiary Borrowers, as the case may be, will pay to such Lender or
the
Issuing Bank, as the case may be, such additional amount or amounts as will
compensate such Lender or the Issuing Bank, as the case may be, for such
additional costs incurred or reduction suffered.
(b) If
any
Lender or the Issuing Bank determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on
such
Lender's or the Issuing Bank's capital or on the capital of such Lender's or
the
Issuing Bank's holding company, if any, as a consequence of this Agreement
or
the Loans made by, or participations in Letters of Credit held by, such Lender,
or the Letters of Credit issued by the Issuing Bank, to a level below that
which
such Lender or the Issuing Bank or such Lender's or the Issuing Bank's holding
company could have achieved but for such Change in Law (taking into
consideration such Lender's or the Issuing Bank's policies and the policies
of
such Lender's or the Issuing Bank's holding company with respect to capital
adequacy), then from time to time the Parent Borrower or the applicable Foreign
Subsidiary Borrowers, as the case may be, will pay to such Lender or the Issuing
Bank, as the case may be, such additional amount or amounts as will compensate
such Lender or the Issuing Bank or such Lender's or the Issuing Bank's holding
company for any such reduction suffered.
(c) A
certificate of a Lender or the Issuing Bank setting forth the amount or amounts
necessary to compensate such Lender or the Issuing Bank or its holding company,
as the case may be, as specified in paragraph (a) or (b) of this
Section shall be delivered to the Parent Borrower (on behalf of itself and
the
Foreign Subsidiary Borrowers) and shall be conclusive absent manifest error.
The
Parent Borrower or the applicable Foreign Subsidiary Borrowers, as the case
may
be, shall pay such Lender or the Issuing Bank, as the case may be, the amount
shown as due on any such certificate within 10 days after receipt
thereof.
(d) Failure
or delay on the part of any Lender or the Issuing Bank to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender's or
the
Issuing Bank's right to demand such compensation; provided
that
neither the Parent Borrower nor any Foreign Subsidiary Borrower shall be
required to compensate a Lender or the Issuing Bank pursuant to this Section
for
any increased costs or reductions incurred more than 270 days prior to the
date that such Lender or the Issuing Bank, as the case may be, notifies the
Parent Borrower (on behalf of itself and the Foreign Subsidiary Borrowers)
of
the Change in Law giving rise to such increased costs or reductions and of
such
Lender's or the Issuing Bank's intention to claim compensation therefor;
provided further
that, if
the Change in Law giving rise to such increased costs or reductions is
retroactive, then the 270-day period referred to above shall be extended to
include the period of retroactive effect thereof.
SECTION
2.16. Break
Funding Payments.
In the
event of (a) the payment of any principal of any Eurocurrency Loan other
than on the last day of an Interest Period applicable thereto (including as
a
result of an Event of Default), (b) the
66
conversion
of any Eurocurrency Loan other than on the last day of the Interest Period
applicable thereto, (c) the failure to borrow, convert, continue or prepay
any Revolving Loan or Term Loan on the date specified in any notice delivered
pursuant hereto (regardless of whether such notice may be revoked under Section
2.11(h) and is revoked in accordance therewith) or (d) the assignment of
any Eurocurrency Loan other than on the last day of the Interest Period
applicable thereto as a result of a request by the Parent Borrower or any
Foreign Subsidiary Borrower pursuant to Section 2.19, then, in any such
event, the Parent Borrower or the applicable Foreign Subsidiary Borrower, as
the
case may be, shall compensate each Lender for the loss, cost and expense
attributable to such event. In the case of a Eurocurrency Loan, such loss,
cost
or expense to any Lender shall be deemed to include an amount determined by
such
Lender to be the excess, if any, of (i) the amount of interest which would
have accrued on the principal amount of such Loan had such event not occurred,
at the Adjusted LIBO Rate that would have been applicable to such Loan, for
the
period from the date of such event to the last day of the then current Interest
Period therefor (or, in the case of a failure to borrow, convert or continue,
for the period that would have been the Interest Period for such Loan), over
(ii) the amount of interest which would accrue on such principal amount for
such
period at the interest rate which such Lender would bid were it to bid, at
the
commencement of such period, for deposits in the applicable currency of a
comparable amount and period from other banks in the Eurocurrency market. A
certificate of any Lender setting forth any amount or amounts that such Lender
is entitled to receive pursuant to this Section shall be delivered to the Parent
Borrower (on behalf of itself and the Foreign Subsidiary Borrowers) and shall
be
conclusive absent manifest error. The Parent Borrower or the applicable Foreign
Subsidiary Borrower, as the case may be, shall pay such Lender the amount shown
as due on any such certificate within 10 days after receipt
thereof.
SECTION
2.17. Taxes.
(a) Any and all payments by or on account of any obligation of the
Parent Borrower or any Foreign Subsidiary Borrower hereunder or under any other
Loan Document shall be made free and clear of and without deduction for any
Indemnified Taxes or Other Taxes; provided
that if
the Parent Borrower or any Foreign Subsidiary Borrower shall be required to
deduct any Indemnified Taxes or Other Taxes from such payments, then
(i) the sum payable shall be increased as necessary so that after making
all required deductions (including deductions applicable to additional sums
payable under this Section) the Administrative Agent, Lender or Issuing Bank
(as
the case may be) receives an amount equal to the sum it would have received
had
no such deductions been made, (ii) the Parent Borrower or such Foreign
Subsidiary Borrower, as the case may be, shall make such deductions and
(iii) the Parent Borrower or such Foreign Subsidiary Borrower, as the case
may be, shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.
(b) In
addition, the Parent Borrower and each Foreign Subsidiary Borrower shall pay
any
Other Taxes to the relevant Governmental Authority in accordance with applicable
law.
(c) The
Parent Borrower and each Foreign Subsidiary Borrower, as the case may be, shall
indemnify the Administrative Agent, each Lender and the Issuing Bank, within
10 Business Days after written demand therefor, for the full amount of any
67
Indemnified
Taxes or Other Taxes paid by the Administrative Agent, such Lender or the
Issuing Bank, as the case may be, on or with respect to any payment by or on
account of any obligation of the Parent Borrower and each Foreign Subsidiary
Borrower, as the case may be, hereunder or under any other Loan Document
(including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) and any penalties, interest
and reasonable expenses arising therefrom or with respect thereto, whether
or
not such Indemnified Taxes or Other Taxes were correctly or legally imposed
or
asserted by the relevant Governmental Authority. A certificate as to the amount
of such payment or liability delivered to the Parent Borrower or any Foreign
Subsidiary Borrower, as the case may be, by a Lender or the Issuing Bank, or
by
the Administrative Agent on its own behalf or on behalf of a Lender or the
Issuing Bank, shall be conclusive absent manifest error.
(d) As
soon
as practicable after any payment of Indemnified Taxes or Other Taxes by the
Parent Borrower or any Foreign Subsidiary Borrower to a Governmental Authority,
the Parent Borrower or such Foreign Subsidiary Borrower, as the case may be,
shall deliver to the Administrative Agent the original or a certified copy
of a
receipt issued by such Governmental Authority evidencing such payment, a copy
of
the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.
(e) Any
Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which the Parent Borrower or any Foreign
Subsidiary Borrower, as the case may be, is located, or any treaty to which
such
jurisdiction is a party, with respect to payments under this Agreement shall
deliver to the Parent Borrower (on behalf of itself and the Foreign Subsidiary
Borrowers) (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law, such properly completed and executed documentation
prescribed by applicable law or reasonably requested by the Parent Borrower
(on
behalf of itself and the Foreign Subsidiary Borrowers) as will permit such
payments to be made without withholding or at a reduced rate.
(f) If
the
Administrative Agent or a Lender (or a transferee) determines, in its sole
discretion, that it has received a refund of any Taxes or Other Taxes as to
which it has been indemnified by the Parent Borrower or any Foreign Subsidiary
Borrower or with respect to which the Parent Borrower (on behalf of itself
and
the Foreign Subsidiary Borrowers) has paid additional amounts pursuant to this
Section 2.17, it shall pay over such refund to the Parent Borrower (but
only to the extent of indemnity payments made, or additional amounts paid,
by
the Parent Borrower or any Foreign Subsidiary Borrower under this
Section 2.17 with respect to the Taxes or the Other Taxes giving rise to
such refund), net of all out-of-pocket expenses of the Administrative Agent
or
such Lender (or Transferee) and without interest (other than any interest paid
by the relevant Governmental Authority with respect to such refund);
provided,
however,
that
the Parent Borrower or any Foreign Subsidiary Borrower, upon the request of
the
Administrative Agent or such Lender (or Transferee), agrees to repay the amount
paid over to the Parent Borrower (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) to the Administrative Agent
or
such
68
Lender
(or Transferee) in the event the Administrative Agent or such Lender (or
Transferee) is required to repay such refund to such Governmental Authority.
Nothing contained in this Section 2.17(f) shall require the Administrative
Agent or any Lender to make available its tax returns or any other information
relating to its taxes which it deems confidential to the Parent Borrower or
any
other person.
SECTION
2.18. Payments
Generally; Pro Rata Treatment; Sharing of Set-offs.
(a) The Parent Borrower (on behalf of itself and the Foreign
Subsidiary Borrowers) shall make each payment required to be made by it
hereunder or under any other Loan Document (whether of principal, interest,
fees
or reimbursement of LC Disbursements, or of amounts payable under Section 2.15,
2.16 or 2.17, or otherwise) on or before the time expressly required hereunder
or under such other Loan Document for such payment (or, if no such time is
expressly required, prior to 12:00 noon, New York City time, or if the
applicable Loan is a Foreign Currency Loan, London time), on the date when
due,
in immediately available funds, without set-off or counterclaim. Any amounts
received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Administrative Agent at its offices at 000 Xxxx Xxxxxx,
Xxx Xxxx, Xxx Xxxx (unless otherwise instructed in the case of Foreign
Currency Loans), except payments to be made directly to the Issuing Bank or
Swingline Lender as expressly provided herein and except that payments pursuant
to Sections 2.15, 2.16, 2.17 and 10.03 shall be made directly to the Persons
entitled thereto and payments pursuant to other Loan Documents shall be made
to
the Persons specified therein. The Administrative Agent shall distribute any
such payments received by it for the account of any other Person to the
appropriate recipient promptly following receipt thereof. If any payment under
any Loan Document shall be due on a day that is not a Business Day, the date
for
payment shall be extended to the next succeeding Business Day, and, in the
case
of any payment accruing interest, interest thereon shall be payable for the
period of such extension. Subject to Section 9.01, all payments under each
Loan Document of principal or interest in respect of any Loan or
LC Disbursement shall be made in the currency of such Loan or
LC Disbursement; all other payments hereunder and under each other Loan
Document shall be made in dollars.
(b) If
at any
time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, unreimbursed LC Disbursements,
interest and fees then due hereunder, such funds shall be applied
(i) first, towards payment of interest and fees then due hereunder, ratably
among the parties entitled thereto in accordance with the amounts of interest
and fees then due to such parties, and (ii) second, towards payment of principal
and unreimbursed LC Disbursements then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of principal and unreimbursed
LC
Disbursements then due to such parties.
(c) If
any
Lender shall, by exercising any right of set-off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its
Revolving Loans, Term Loans or participations in LC Disbursements or
69
Swingline
Loans resulting in such Lender receiving payment of a greater proportion of
the
aggregate amount of its Revolving Loans, Term Loans and participations in LC
Disbursements and Swingline Loans and accrued interest thereon than the
proportion received by any other Lender, then the Lender receiving such greater
proportion shall purchase (for cash at face value) participations in the
Revolving Loans, Term Loans and participations in LC Disbursements and Swingline
Loans of other Lenders to the extent necessary so that the benefit of all such
payments shall be shared by the Lenders ratably in accordance with the aggregate
amount of principal of and accrued interest on their respective Revolving Loans,
Term Loans and participations in LC Disbursements and Swingline Loans;
provided
that (i)
if any such participations are purchased and all or any portion of the payment
giving rise thereto is recovered, such participations shall be rescinded and
the
purchase price restored to the extent of such recovery, without interest, and
(ii) the provisions of this paragraph shall not be construed to apply to any
payment made by the Parent Borrower or any Foreign Subsidiary Borrower pursuant
to and in accordance with the express terms of this Agreement or any payment
obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Loans or participations in LC Disbursements to
any
assignee or participant, other than to the Parent Borrower or any Subsidiary
or
Affiliate thereof (as to which the provisions of this paragraph shall apply).
The Parent Borrower and each Foreign Subsidiary Borrower consents to the
foregoing and agrees, to the extent it may effectively do so under applicable
law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against the Parent Borrower or any Foreign Subsidiary
Borrower, as the case may be, rights of set-off and counterclaim with respect
to
such participation as fully as if such Lender were a direct creditor of the
Parent Borrower or such Foreign Subsidiary Borrower in the amount of such
participation.
(d) Unless
the Administrative Agent shall have received notice from the Parent Borrower
(on
behalf of itself and the Foreign Subsidiary Borrowers) prior to the date on
which any payment is due to the Administrative Agent for the account of the
Lenders or the Issuing Bank hereunder that the Parent Borrower or any Foreign
Subsidiary Borrower, as the case may be, will not make such payment, the
Administrative Agent may assume that the Parent Borrower or such Foreign
Subsidiary Borrower, as the case may be, has made such payment on such date
in
accordance herewith and may, in reliance upon such assumption, distribute to
the
Lenders or the Issuing Bank, as the case may be, the amount due. In such event,
if the Parent Borrower or such Foreign Subsidiary Borrower, as the case may
be,
has not in fact made such payment, then each of the Lenders or the Issuing
Bank,
as the case may be, severally agrees to repay to the Administrative Agent
forthwith on demand the amount so distributed to such Lender or Issuing Bank
with interest thereon, for each day from and including the date such amount
is
distributed to it to but excluding the date of payment to the Administrative
Agent, at the greater of the Federal Funds Effective Rate and a rate determined
by the Administrative Agent in accordance with banking industry rules on
interbank compensation.
(e) If
any
Lender shall fail to make any payment required to be made by it pursuant to
Section 2.04(c), 2.05(d) or (e), 2.06(b), 2.18(d) or 10.03(c), then the
Administrative Agent may, in its discretion (notwithstanding any contrary
provision
70
hereof),
apply any amounts thereafter received by the Administrative Agent for the
account of such Lender to satisfy such Lender's obligations under such Sections
until all such unsatisfied obligations are fully paid.
SECTION
2.19. Mitigation
Obligations; Replacement of Lenders.
(a) If any Lender requests compensation under Section 2.15, or
if the Parent Borrower or any Foreign Subsidiary Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 2.17, then such Lender shall use
reasonable efforts to designate a different lending office for funding or
booking its Loans hereunder or to assign its rights and obligations hereunder
to
another of its offices, branches or affiliates, if, in the judgment of such
Lender, such designation or assignment (i) would eliminate or reduce amounts
payable pursuant to Section 2.15 or 2.17, as the case may be, in the future
and
(ii) would not subject such Lender to any unreimbursed cost or expense and
would
not otherwise be disadvantageous to such Lender. The Parent Borrower (on behalf
of itself and the Foreign Subsidiary Borrowers) hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any
such
designation or assignment.
(b) If
any
Lender requests compensation under Section 2.15, or if the Parent Borrower
or any Foreign Subsidiary Borrower is required to pay any additional amount
to
any Lender or any Governmental Authority for the account of any Lender pursuant
to Section 2.17, or if any Lender defaults in its obligation to fund Loans
hereunder, then the Parent Borrower (on behalf of itself and the Foreign
Subsidiary Borrowers) 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 Section 10.04), all its interests, rights and obligations under this
Agreement to an assignee selected by the Parent Borrower that shall assume
such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided
that (i)
the Parent Borrower (on behalf of itself and the Foreign Subsidiary Borrowers)
shall have received the prior written consent of the Administrative Agent (and,
if a Revolving Commitment is being assigned, the Issuing Bank and Swingline
Lender), which consent shall not unreasonably be withheld, (ii) such Lender
shall have received payment of an amount equal to the outstanding principal
of
its Loans and participations in LC Disbursements and Swingline Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder,
from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Parent Borrower and the Foreign Subsidiary Borrowers
(in the case of all other amounts) and (iii) in the case of any such
assignment resulting from a claim for compensation under Section 2.15 or
payments required to be made pursuant to Section 2.17, such assignment will
result in a material reduction in such compensation or payments. A Lender shall
not be required to make any such assignment and delegation if, prior thereto,
as
a result of a waiver by such Lender or otherwise, the circumstances entitling
the Parent Borrower or any Foreign Subsidiary Borrower to require such
assignment and delegation cease to apply.
SECTION
2.20. Additional
Reserve Costs.
(a) If and so long as any Revolving Lender is required to make
special deposits with the Bank of England, to
71
maintain
reserve asset ratios or to pay fees, in each case in respect of such Revolving
Lender's Foreign Currency Loans, such Revolving Lender may require the relevant
Foreign Subsidiary Borrower to pay, contemporaneously with each payment of
interest on each of such Foreign Currency Loans, additional interest on such
Foreign Currency Loan at a rate per annum equal to the Mandatory Costs Rate
calculated in accordance with the formula and in the manner set forth in
Exhibit I hereto.
(b) If
and so
long as any Revolving Lender is required to comply with reserve assets,
liquidity, cash margin or other requirements of any monetary or other authority
(including any such requirement imposed by the European Central Bank or the
European System of Central Banks, but excluding requirements reflected in the
Statutory Reserve Rate or the Mandatory Costs Rate) in respect of any of such
Revolving Lender's Foreign Currency Loans, such Revolving Lender may require
the
relevant Foreign Subsidiary Borrower to pay, contemporaneously with each payment
of interest on each of such Revolving Lender's Foreign Currency Loans subject
to
such requirements, additional interest on such Foreign Currency Loan at a rate
per annum specified by such Revolving Lender to be the cost to such Revolving
Lender of complying with such requirements in relation to such Foreign Currency
Loan.
(c) Any
additional interest owed pursuant to paragraph (a) or (b) above shall
be determined by the relevant Revolving Lender, which determination shall be
conclusive absent manifest error, and notified to the Parent Borrower (on behalf
of the relevant Foreign Subsidiary Borrower) (with a copy to the Administrative
Agent)) at least five Business Days before each date on which interest is
payable for the relevant Foreign Currency Loan, and such additional interest
so
notified by such Revolving Lender shall be payable to the Administrative Agent
for the account of such Revolving Lender on each date on which interest is
payable for such Foreign Currency Loan.
SECTION
2.21. Designation
of Foreign Subsidiary Borrowers.
The
Parent Borrower may at any time and from time to time designate any Foreign
Subsidiary as a Foreign Subsidiary Borrower, by delivery to the Administrative
Agent of a Foreign Subsidiary Borrowing Agreement executed by such Foreign
Subsidiary and the Parent Borrower, and upon such delivery such Foreign
Subsidiary shall for all purposes of this Agreement and the other Loan Documents
be a Foreign Subsidiary Borrower until the Parent Borrower shall terminate
such
designation pursuant to a termination agreement satisfactory to the
Administrative Agent, whereupon such Foreign Subsidiary shall cease to be a
Foreign Subsidiary Borrower and a party to this Agreement and any other
applicable Loan Documents. Notwithstanding the preceding sentence, no such
termination will become effective as to any Foreign Subsidiary Borrower at
a
time when any principal of or interest on any Loan to such Foreign Subsidiary
Borrower is outstanding. As soon as practicable upon receipt of a Foreign
Subsidiary Borrowing Agreement, the Administrative Agent shall send a copy
thereof to each Lender.
SECTION
2.22. Foreign
Subsidiary Borrower Costs.
(a) If the cost to any Revolving Lender of making or maintaining any
Foreign Currency Loan to a Foreign Subsidiary Borrower is increased (or the
amount of any sum received or receivable by any Revolving Lender (or its
applicable lending office) is reduced) by an
72
amount
deemed in good faith by such Revolving Lender to be material, by reason of
the
fact that such Foreign Subsidiary Borrower is incorporated in, or conducts
business in, a jurisdiction outside the United States, such Foreign
Subsidiary Borrower shall indemnify such Revolving Lender for such increased
cost or reduction within 15 days after demand by such Revolving Lender
(with a copy to the Administrative Agent). A certificate of such Revolving
Lender claiming compensation under this paragraph and setting forth the
additional amount or amounts to be paid to it hereunder (and the basis for
the
calculation of such amount or amounts) shall be conclusive in the absence of
manifest error.
(b) Each
Revolving Lender will promptly notify the Parent Borrower (on behalf of the
relevant Foreign Subsidiary Borrower) and the Administrative Agent of any event
of which it has knowledge that will entitle such Revolving Lender to additional
interest or payments pursuant to paragraph (a) above, but in any event
within 45 days after such Revolving Lender obtains actual knowledge
thereof; provided
that
(i) if any Revolving Lender fails to give such notice within 45 days
after it obtains actual knowledge of such an event, such Revolving Lender shall,
with respect to compensation payable pursuant to this Section 2.21 in
respect of any costs resulting from such event, only be entitled to payment
under this Section 2.21 for costs incurred from and after the date
45 days prior to the date that such Revolving Lender does give such notice
and (ii) each Revolving Lender will designate a different applicable lending
office, if, in the judgment of such Revolving Lender, such designation will
avoid the need for, or reduce the amount of, such compensation and will not
be
otherwise disadvantageous to such Revolving Lender.
ARTICLE
III
Representations
and Warranties
Each
of
Holdings, the Parent Borrower and each Foreign Subsidiary Borrower (as to itself
only) represents and warrants to the Lenders that:
SECTION
3.01. Organization;
Powers.
Each of
Holdings, the Parent Borrower and its Subsidiaries (including the Receivables
Subsidiary) is duly organized, validly existing and in good standing under
the
laws of the jurisdiction of its organization, has all requisite power and
authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business
in,
and is in good standing in, every jurisdiction where such qualification is
required.
SECTION
3.02. Authorization;
Enforceability.
The
Transactions to be entered into by each Loan Party are within such Loan Party's
powers and have been duly authorized by all necessary action. This Agreement
has
been duly executed and delivered by each of Holdings and the Parent Borrower
and
constitutes, and each other Loan Document to which any Loan Party is to be
a
party, when executed and delivered
73
by
such
Loan Party, will constitute, a legal, valid and binding obligation of Holdings,
the Parent Borrower or such Loan Party (as the case may be), enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors' rights generally
and subject to general principles of equity, regardless of whether considered
in
a proceeding in equity or at law.
SECTION
3.03. Governmental
Approvals; No Conflicts.
The
Transactions (a) do not require any consent or approval of, registration or
filing with, or any other action by, any Governmental Authority, except
(x) such as have been obtained or made and are in full force and effect,
(y) filings necessary to perfect Liens created under the Loan Documents and
(z) consents, approvals, registrations, filings or actions the failure of
which to obtain or perform could not reasonably be expected to result in a
Material Adverse Effect, (b) will not violate any applicable law or
regulation or the charter, by-laws or other organizational documents of
Holdings, the Parent Borrower or any of its Subsidiaries (including the
Receivables Subsidiary) or any order of any Governmental Authority,
(c) will not violate or result in a default under any indenture, agreement
or other instrument binding upon Holdings, the Parent Borrower or any of its
Subsidiaries (including the Receivables Subsidiary) or its assets, or give
rise
to a right thereunder to require any payment to be made by Holdings, the Parent
Borrower or any of its Subsidiaries (including the Receivables Subsidiary),
except for violations, defaults or the creation of such rights that could not
reasonably be expected to result in a Material Adverse Effect, and (d) will
not result in the creation or imposition of any Lien on any asset of Holdings,
the Parent Borrower or any of its Subsidiaries (including the Receivables
Subsidiary), except Liens created under the Loan Documents and Liens permitted
by Section 6.02.
SECTION
3.04. Financial
Condition; No Material Adverse Change.
(a) Holdings has heretofore furnished to the Lenders its consolidated
balance sheet and statements of income, stockholders equity and cash flows
(i)
as of and for the fiscal year ended January 2, 2005, reported on by
KPMG LLP, independent public accountants, and (ii) as of and for the fiscal
quarter and the portion of the fiscal year ended September 30, 2005,
certified by its chief financial officer. Such financial statements present
fairly, in all material respects, the financial position and results of
operations and cash flows of Holdings and its consolidated Subsidiaries as
of
such dates and for such periods in accordance with GAAP, subject to year-end
audit adjustments and the absence of footnotes in the case of the statements
referred to in clause (ii) above.
(b) Except
as
disclosed in the financial statements referred to above or the notes thereto
or
in the Information Memorandum, except for the Disclosed Matters and except
for
liabilities arising as a result of the Transactions, after giving effect to
the
Transactions, none of Holdings, the Parent Borrower or the Subsidiaries
(including the Receivables Subsidiary and the Saturn Subsidiary) has, as of
the
Restatement Effective Date, any contingent liabilities that would be material
to
Holdings, the Parent Borrower and the Subsidiaries (including the Receivables
Subsidiary and the Saturn Subsidiary), taken as a whole.
74
(c) Since
December 31, 2004, there has been no event, change or occurrence that,
individually or in the aggregate, has had or could reasonably be expected to
result in a Material Adverse Effect.
SECTION
3.05. Properties.
(a) Each of Holdings, the Parent Borrower and its Subsidiaries has
good title to, or valid leasehold interests in, all its real and personal
property material to its business (including its Mortgaged Properties), except
for minor defects in title that do not interfere with its ability to conduct
its
business as currently conducted or to utilize such properties for their intended
purposes.
(b) Each
of
Holdings, the Parent Borrower and its Subsidiaries owns, or is licensed to
use,
all trademarks, tradenames, copyrights, patents and other intellectual property
material to its business, and the use thereof by Holdings, the Parent Borrower
and its Subsidiaries does not infringe upon the rights of any other Person,
except for any such infringements that, individually or in the aggregate, could
not reasonably be expected to result in a Material Adverse Effect.
(c) As
of the
Restatement Effective Date, neither Holdings, the Parent Borrower nor any of
its
Subsidiaries has received written notice of any pending or contemplated
condemnation proceeding affecting any Mortgaged Property or any sale or
disposition thereof in lieu of condemnation. Neither any Mortgaged Property
nor
any interest therein is subject to any right of first refusal, option or other
contractual right to purchase such Mortgaged Property or interest
therein.
SECTION
3.06. Litigation
and Environmental Matters.
(a) There are no actions, suits or proceedings by or before any
arbitrator or Governmental Authority pending against or, to the knowledge of
Holdings or the Parent Borrower, threatened against or affecting Holdings,
the
Parent Borrower or any of its Subsidiaries (including the Receivables
Subsidiary) (i) as to which there is a reasonable possibility of an adverse
determination and that, if adversely determined, could reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect (other
than the Disclosed Matters) or (ii) that involve any of the Loan Documents
or the Transactions.
(b) Except
for the Disclosed Matters and except with respect to any other matters that,
individually or in the aggregate, could not reasonably be expected to result
in
a Material Adverse Effect, neither Holdings, the Parent Borrower nor any of
its
Subsidiaries (including the Receivables Subsidiary) (i) has failed to
comply with any Environmental Law or to obtain, maintain or comply with any
permit, license or other approval required under any Environmental Law,
(ii) has become subject to any Environmental Liability, (iii) has
received notice of any claim with respect to any Environmental Liability or
(iv)
knows of any basis for any Environmental Liability.
(c) Since
the
date of the Original Credit Agreement, there has been no change in the status
of
the Disclosed Matters that, individually or in the aggregate, has resulted
in,
or materially increased the likelihood of, a Material Adverse
Effect.
75
SECTION
3.07. Compliance
with Laws and Agreements.
Each of
Holdings, the Parent Borrower and its Subsidiaries (including the Receivables
Subsidiary) is in compliance with all laws, regulations and orders of any
Governmental Authority applicable to it or its property and all indentures,
agreements and other instruments binding upon it or its property, except where
the failure to do so, individually or in the aggregate, could not reasonably
be
expected to result in a Material Adverse Effect. No Default has occurred and
is
continuing.
SECTION
3.08. Investment
and Holding Company Status.
Neither
Holdings, the Parent Borrower nor any of its Subsidiaries (including the
Receivables Subsidiary) is (a) an "investment company" as defined in, or
subject to regulation under, the Investment Company Act of 1940 or (b) a
"holding company" as defined in, or subject to regulation under, the Public
Utility Holding Company Act of 1935.
SECTION
3.09. Taxes.
Each of
Holdings, the Parent Borrower and its Subsidiaries (including the Receivables
Subsidiary) has timely filed or caused to be filed all Tax returns and reports
required to have been filed and has paid or caused to be paid all Taxes required
to have been paid by it, except (a) any Taxes that are being contested in
good faith by appropriate proceedings and for which Holdings, the Parent
Borrower or such Subsidiary (including the Receivables Subsidiaries), as
applicable, has set aside on its books adequate reserves or (b) to the
extent that the failure to do so could not reasonably be expected to result
in a
Material Adverse Effect.
SECTION
3.10. ERISA.
No ERISA
Event has occurred or is reasonably expected to occur that, when taken together
with all other such ERISA Events for which liability is reasonably expected
to
occur, could reasonably be expected to result in a Material Adverse Effect.
As
of the Recapitalization Date, the present value of all accumulated benefit
obligations under any one Plan (based on the assumptions used for purposes
of
Statement of Financial Accounting Standards No. 87) did not, as of the date
of the most recent financial statements reflecting such amounts, exceed by
more
than $23,000,000 the fair market value of the assets of such Plan, and the
present value of all accumulated benefit obligations of all underfunded Plans
(based on the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most recent financial
statements reflecting such amounts, exceed by more than $40,000,000 the fair
market value of the assets of all such underfunded Plans.
SECTION
3.11. Disclosure.
Each of
Holdings and the Parent Borrower has disclosed to the Lenders all agreements,
instruments and corporate or other restrictions to which Holdings, the Parent
Borrower or any of its Subsidiaries (including the Receivables Subsidiary)
is
subject, and all other matters known to any of them, that, individually or
in
the aggregate, could reasonably be expected to result in a Material Adverse
Effect. Neither the Information Memorandum nor any of the other reports,
financial statements, certificates or other information furnished by or on
behalf of any Loan Party to the Administrative Agent or any Lender in connection
with the negotiation of this Agreement or any other Loan Document or delivered
hereunder or thereunder (as modified or supplemented by other information so
furnished) contained as of its date any material misstatement of fact or omits
to state any material fact necessary to make the
76
statements
therein, in the light of the circumstances under which they were made, not
misleading; provided
that,
with respect to projected financial information, Holdings and the Parent
Borrower represent only that such information was prepared in good faith based
upon assumptions believed to be reasonable at the time such projections were
prepared.
SECTION
3.12. Subsidiaries.
Holdings
does not have any subsidiaries other than the Parent Borrower, the Saturn
Subsidiary and the Parent Borrower's Subsidiaries. Schedule 3.12 sets forth
the name of, and the ownership interest of the Parent Borrower in, each
Subsidiary of the Parent Borrower and identifies each Subsidiary that is a
Subsidiary Loan Party, in each case as of the Effective Date.
SECTION
3.13. Insurance.
As of
the Effective Date, all premiums due in respect of material insurance policies
maintained by or on behalf of Holdings, the Parent Borrower and the Subsidiaries
as of the Effective Date have been paid.
SECTION
3.14. Labor
Matters.
As of
the Effective Date, there are no strikes, lockouts or slowdowns against
Holdings, the Parent Borrower or any Subsidiary pending or, to the knowledge
of
Holdings or the Parent Borrower, threatened that could reasonably be expected
to
have a Material Adverse Effect. All payments due from Holdings, the Parent
Borrower or any Subsidiary, or for which any claim may be made against Holdings,
the Parent Borrower or any Subsidiary, on account of wages and employee health
and welfare insurance and other benefits, have been paid or accrued as a
liability on the books of Holdings, the Parent Borrower or such Subsidiary.
The
consummation of the Transactions will not give rise to any right of termination
or right of renegotiation on the part of any union under any collective
bargaining agreement to which Holdings, the Parent Borrower or any Subsidiary
is
bound.
SECTION
3.15. Solvency.
Immediately after the consummation of the Transactions to occur on the Effective
Date and immediately following the making of each Loan made on the Effective
Date and after giving effect to the application of the proceeds of such Loans,
(a) the fair value of the assets of each Loan Party, at a fair valuation,
will exceed its debts and liabilities, subordinated, contingent or otherwise;
(b) the present fair saleable value of the property of each Loan Party will
be greater than the amount that will be required to pay the probable liability
of its debts and other liabilities, subordinated, contingent or otherwise,
as
such debts and other liabilities become absolute and matured; (c) each Loan
Party will be able to pay its debts and liabilities, subordinated, contingent
or
otherwise, as such debts and liabilities become absolute and matured; and
(d) the Loan Parties, on a consolidated basis, will not have unreasonably
small capital with which to conduct the business in which it is engaged as
such
business is now conducted and is proposed to be conducted following the
Effective Date.
SECTION
3.16. Senior
Indebtedness.
To the
extent any Subordinated Debt is outstanding, the Obligations constitute "Senior
Indebtedness" under and as defined in the Subordinated Debt
Documents.
77
SECTION
3.17. Security
Documents.
(a) The Pledge Agreement is effective to create in favor of the
Collateral Agent, for the benefit of the Secured Parties, a legal, valid and
enforceable security interest in the Collateral (as defined in the Pledge
Agreement) and, when such Collateral is delivered to the Collateral Agent and
for so long as the Collateral Agent remains in possession of such Collateral,
the security interest created by the Pledge Agreement shall constitute a
perfected first priority security interest in all right, title and interest
of
the pledgor thereunder in such Collateral, in each case prior and superior
in
right to any other Person.
(b) The
Security Agreement is effective to create in favor of the Collateral Agent,
for
the benefit of the Secured Parties, a legal, valid and enforceable security
interest in the Collateral (as defined in the Security Agreement) and, when
financing statements in appropriate form are filed in the offices specified
on
Schedule 6 to the Perfection Certificate, the security interest created by
the Security Agreement shall constitute a perfected security interest in all
right, title and interest of the grantors thereunder in such Collateral (other
than the Intellectual Property (as defined in the Security Agreement)), in
each
case prior and superior in right to any other Person, other than with respect
to
Liens permitted by Section 6.02.
(c) When
the
Security Agreement (or a summary thereof) is filed in the United States
Patent and Trademark Office and the United States Copyright Office and the
financing statements referred to in Section 3.17(b) above are appropriately
filed, the security interest created by the Security Agreement shall constitute
a perfected security interest in all right, title and interest of the grantors
thereunder in the Intellectual Property (as defined in the Security Agreement)
in which a security interest may be perfected by filing, recording or
registering a security agreement, financing statement or analogous document
in
the United States Patent and Trademark Office or the United States
Copyright Office, as applicable, in each case prior and superior in right to
any
other Person (it being understood that subsequent recordings in the
United States Patent and Trademark Office and the United States
Copyright Office and subsequent UCC filings may be necessary to perfect a lien
on registered trademarks, trademark applications and copyrights acquired by
the
Loan Parties after the Effective Date), other than with respect to Liens
permitted by Section 6.02.
(d) The
Mortgages are effective to create, subject to the exceptions listed in each
title insurance policy covering such Mortgage, in favor of the Collateral Agent,
for the benefit of the Secured Parties, a legal, valid and enforceable Lien
on
all of the applicable mortgagor's right, title and interest in and to the
Mortgaged Properties thereunder and the proceeds thereof, and when the Mortgages
are filed in the offices specified on Schedule 3.17(d), the Lien created by
each Mortgage shall constitute a perfected Lien on all right, title and interest
of the applicable mortgagor in such Mortgaged Properties and the proceeds
thereof, in each case prior and superior in right to any other Person, other
than with respect to the rights of Persons pursuant to Liens permitted by
Section 6.02.
(e) Following
the execution of any Foreign Security Document pursuant to Section 4.03,
each Foreign Security Document shall be effective to create in
78
favor
of
the Collateral Agent, for the benefit of the Secured Parties, a legal, valid
and
enforceable security interest in the applicable collateral covered by such
Foreign Security Document, and when the actions specified in such Foreign
Security Document, if any, are completed, the security interest created by
such
Foreign Security Document shall constitute a perfected security interest in
all
right, title and interest of the grantors thereunder in such collateral to
the
full extent possible under the laws of the applicable foreign jurisdiction,
in
each case prior and superior in right to any other Person, other than with
respect to Liens permitted by Section 6.02.
SECTION
3.18. Federal
Reserve Regulations.
(a) None of Holdings, the Parent Borrower or any of the Subsidiaries
(including the Receivables Subsidiary) is engaged principally, or as one of
its
important activities, in the business of extending credit for the purpose of
buying or carrying Margin Stock.
(b) No
part
of the proceeds of any Loan or any Letter of Credit will be used, whether
directly or indirectly, and whether immediately, incidentally or
ultimately, for any purpose that entails a violation of the provisions of
the Regulations of the Board, including Regulation U or X.
ARTICLE
IV
Conditions
SECTION
4.01. [intentionally
omitted].
SECTION
4.02. Each
Credit Event.
The
obligation of each Lender to make a Loan on the occasion of any Borrowing (other
than (i) any Revolving Borrowing made pursuant to Section 2.05(d) and
(ii) any continuation or conversion of a Borrowing pursuant to the terms
hereof that does not result in the increase of the aggregate principal amount
of
the Borrowings then outstanding), and of the Issuing Bank to issue, amend,
renew
or extend any Letter of Credit, is subject to receipt of the request therefor
in
accordance herewith and to the satisfaction of the following
conditions:
(a)
The
representations and warranties of each Loan Party set forth in the Loan
Documents shall be true and correct on and as of the date of such Borrowing
or
the date of issuance, amendment, renewal or extension of such Letter of Credit,
as applicable.
(b)
At
the time of and immediately after giving effect to such Borrowing or the
issuance, amendment, renewal or extension of such Letter of Credit, as
applicable, no Default shall have occurred and be continuing.
Each
Borrowing and each issuance, amendment, renewal or extension of a Letter of
Credit shall be deemed to constitute a representation and warranty by Holdings
and the Parent Borrower on the date thereof as to the matters specified in
paragraphs (a) and (b) of this Section.
79
SECTION
4.03. Credit
Events Relating to Foreign Subsidiary Borrowers.
The
obligation of each Lender to make Loans to any Foreign Subsidiary Borrower
is
subject to the satisfaction of the following conditions:
(a)
With
respect to the initial Credit Event relating to such Foreign Subsidiary
Borrower;
(i)
the
Administrative Agent (or its counsel) shall have received such Foreign
Subsidiary Borrower's Foreign Subsidiary Borrowing Agreement duly executed
by
all parties thereto; and
(ii)
the
Administrative Agent shall have received such documents (including legal
opinions) and certificates as the Administrative Agent or its counsel may
reasonably request relating to the formation, existence and good standing of
such Foreign Subsidiary Borrower, the authorization of the Foreign Currency
Borrowings as they relate to such Foreign Subsidiary Borrower and any other
legal matters relating to such Foreign Subsidiary Borrower or its Foreign
Subsidiary Borrowing Agreement, all in form and substance satisfactory to the
Administrative Agent and its counsel.
(b)
With
respect to any Credit Event following which (x) such Foreign Subsidiary
Borrower will have borrowed more than the Dollar Equivalent of $5,000,000 of
Foreign Currency Borrowings or (y) the aggregate amount of outstanding
Foreign Currency Borrowings exceeds the Dollar Equivalent of $15,000,000, the
Administrative Agent shall be satisfied that the Foreign Security Collateral
and
Guarantee Agreement shall be satisfied with respect to such Foreign Subsidiary
Borrower in the case of clause (x) and all Foreign Subsidiary Borrowers in
the case of clause (y).
ARTICLE
V
Affirmative
Covenants
Until
the
Commitments have expired or been terminated and the principal of and interest
on
each Loan and all fees payable hereunder shall have been paid in full and all
Letters of Credit shall have expired or terminated and all LC Disbursements
shall have been reimbursed, each of Holdings, the Parent Borrower and each
Foreign Subsidiary Borrower (as to itself only) covenants and agrees with the
Lenders that:
SECTION
5.01. Financial
Statements and Other Information.
Holdings
or the Parent Borrower will furnish to the Administrative Agent and each
Lender:
(a)
within 95 days after the end of each fiscal year of Holdings, its audited
consolidated and unaudited consolidating balance sheet and related statements
of
80
operations,
stockholders' equity and cash flows as of the end of and for such year, setting
forth in each case in comparative form the figures for the previous fiscal
year,
all reported on by PriceWaterhouseCoopers LLP or other independent public
accountants of recognized national standing (without a "going concern" or like
qualification or exception and without any qualification or exception as to
the
scope of such audit) to the effect that such consolidated financial statements
present fairly in all material respects the financial condition and results
of
operations of Holdings and its consolidated subsidiaries on a consolidated
basis
in accordance with GAAP consistently applied, other than any change in the
application of GAAP due solely to Holdings', the Parent Borrower's and the
Subsidiaries' transition from "recapitalization accounting" to "purchase
accounting" (it is understood that such financial statements shall also present
separately financial information with respect to the Receivables Subsidiary
and
the Saturn Subsidiary);
(b)
within 50 days after the end of each of the first three fiscal quarters of
each fiscal year of Holdings, its consolidated balance sheet and related
statements of operations, stockholders' equity and cash flows as of the end
of
and for such fiscal quarter and the then elapsed portion of the fiscal year,
setting forth in each case in comparative form the figures for the corresponding
period or periods of (or, in the case of the balance sheet, as of the end of)
the previous fiscal year, all certified by one of its Financial Officers as
presenting fairly in all material respects the financial condition and results
of operations of Holdings and its consolidated subsidiaries on a consolidated
basis in accordance with GAAP consistently applied, subject to normal year-end
audit adjustments and the absence of footnotes (it is understood that such
financial statements shall also present separately financial information with
respect to the Receivables Subsidiary and the Saturn Subsidiary);
(c)
concurrently with any delivery of financial statements under clause (a) or
(b) above, a certificate of a Financial Officer of Holdings or the Parent
Borrower (i) certifying as to whether a Default has occurred and, if a
Default has occurred, specifying the details thereof and any action taken or
proposed to be taken with respect thereto, (ii) setting forth reasonably
detailed calculations demonstrating compliance with Sections 6.13, 6.14
and 6.15, (iii) stating whether any change in GAAP or in the
application thereof has occurred since the date of Holdings' audited financial
statements referred to in Section 3.04 and, if any such change has
occurred, specifying the effect of such change on the financial statements
accompanying such certificate and (iv) identifying all Subsidiaries existing
on
the date of such certificate and indicating, for each such Subsidiary, whether
such Subsidiary is a Subsidiary Loan Party or a Foreign Subsidiary and whether
such Subsidiary was formed or acquired since the end of the previous fiscal
quarter;
(d)
concurrently with any delivery of financial statements under clause
(a) above, (i) a certificate of the accounting firm that reported on
such financial statements stating whether they obtained knowledge during the
course of their
81
examination
of such financial statements of any Default (which certificate may be limited
to
the extent required by accounting rules or guidelines) and (ii) a
certificate of a Financial Officer of Holdings or the Parent Borrower
(A) identifying any parcels of real property or improvements thereto with a
value exceeding $750,000 that have been acquired by any Loan Party since the
end
of the previous fiscal year, (B) identifying any changes of the type
described in Section 5.03(a) that have not been previously reported by the
Parent Borrower, (C) identifying any Permitted Acquisitions that have been
consummated since the end of the previous fiscal year, including the date on
which each such Permitted Acquisition was consummated and the consideration
therefor, (D) identifying any Intellectual Property (as defined in the
Security Agreement) with respect to which a notice is required to be delivered
under the Security Agreement and has not been previously delivered and
(E) identifying any Prepayment Events that have occurred since the end of
the previous fiscal year and setting forth a reasonably detailed calculation
of
the Net Proceeds received from Prepayment Events since the end of such previous
fiscal year;
(e)
within 30 days from the commencement of each fiscal year of Holdings
(commencing with the fiscal year ending December 31, 2002), a detailed
consolidated budget for such fiscal year (including a projected consolidated
balance sheet and related statements of projected operations and cash flow
as of
the end of and for such fiscal year and setting forth the assumptions used
for
purposes of preparing such budget) and, promptly when available, any material
revisions of such budget that have been approved by senior management of
Holdings;
(f)
promptly after the same become publicly available, copies of all periodic and
other reports, proxy statements and other materials filed by Holdings, the
Parent Borrower or any Subsidiary with the Securities and Exchange Commission,
or any Governmental Authority succeeding to any or all of the functions of
said
Commission, or with any national securities exchange, as the case may be;
and
(g)
promptly following any request therefor, such other information regarding the
operations, business affairs and financial condition of Holdings, the Parent
Borrower or any Subsidiary, or compliance with the terms of any Loan Document,
as the Administrative Agent or any Lender may reasonably request.
SECTION
5.02. Notices
of Material Events.
Holdings
and the Parent Borrower will furnish to the Administrative Agent and each Lender
prompt written notice of the following:
(a)
the
occurrence of any Default;
(b)
the
filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting Holdings,
82
the
Parent Borrower or any Affiliate thereof that, if adversely determined, could
reasonably be expected to result in a Material Adverse Effect;
(c)
the
occurrence of any ERISA Event that, alone or together with any other ERISA
Events that have occurred, could reasonably be expected to result in liability
of Holdings, the Parent Borrower and its Subsidiaries in an aggregate amount
exceeding $10,000,000; and
(d)
any
other development that results in, or could reasonably be expected to result
in,
a Material Adverse Effect.
Each
notice delivered under this Section shall be accompanied by a statement of
a
Financial Officer or other executive officer of the Parent Borrower setting
forth the details of the event or development requiring such notice and any
action taken or proposed to be taken with respect thereto.
SECTION
5.03. Information
Regarding Collateral.
(a) The Parent Borrower will furnish to the Administrative Agent
prompt written notice of any change (i) in any Loan Party's legal name or in
any
trade name used to identify it in the conduct of its business or in the
ownership of its properties, (ii) in the location of any Loan Party's chief
executive office, its principal place of business, any office in which it
maintains books or records relating to Collateral owned by it or any office
or
facility at which Collateral owned by it is located (including the establishment
of any such new office or facility), (iii) in any Loan Party's identity or
structure or (iv) in any Loan Party's Federal Taxpayer Identification Number.
The Parent Borrower agrees not to effect or permit any change referred to in
the
preceding sentence unless written notice has been delivered to the Collateral
Agent, together with all applicable information to enable the Administrative
Agent to make all filings under the Uniform Commercial Code or otherwise that
are required in order for the Collateral Agent (on behalf of the Secured
Parties) to continue at all times following such change to have a valid, legal
and perfected security interest in all the Collateral.
(b) Each
year, at the time of delivery of annual financial statements with respect to
the
preceding fiscal year pursuant to clause (a) of Section 5.01, Holdings (on
behalf of itself and the other Loan Parties) shall deliver to the Administrative
Agent a certificate of a Financial Officer of Holdings (i) setting forth the
information required pursuant to the Perfection Certificate or confirming that
there has been no change in such information since the date of the Perfection
Certificate delivered on the Effective Date or the date of the most recent
certificate delivered pursuant to this Section and (ii) certifying that all
Uniform Commercial Code financing statements (including fixture filings, as
applicable) or other appropriate filings, recordings or registrations, including
all refilings, rerecordings and reregistrations, containing a description of
the
Collateral have been filed of record in each governmental, municipal or other
appropriate office in each jurisdiction identified pursuant to clause (i) above
to the extent necessary to protect and perfect the security interests under
the
Collateral Agreement for a period of not less than 18 months after the date
of
such certificate (except as noted therein with respect to any continuation
statements to be filed within such period).
83
SECTION
5.04. Existence;
Conduct of Business. Each
of
Holdings, the Parent Borrower and the Foreign Subsidiary Borrowers will, and
will cause each of the Subsidiaries to, do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its legal
existence and the rights, licenses, permits, privileges, franchises, patents,
copyrights, trademarks and trade names the loss of which would have a Material
Adverse Effect; provided
that the
foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 6.03 or disposition by
Section 6.05. Holdings and the Parent Borrower will cause all the Equity
Interests of the Foreign Subsidiary Borrowers to be owned, directly or
indirectly, by the Parent Borrower or any Subsidiary.
SECTION
5.05. Payment
of Obligations.
Each of
Holdings, the Parent Borrower and the Foreign Subsidiary Borrowers will, and
will cause each of the Subsidiaries (including the Receivables Subsidiary and
the Saturn Subsidiary) to, pay its Indebtedness and other obligations, including
Tax liabilities, before the same shall become delinquent or in default, except
where (a) the validity or amount thereof is being contested in good faith
by appropriate proceedings, (b) Holdings, the Parent Borrower the Foreign
Subsidiary Borrowers or such Subsidiary has set aside on its books adequate
reserves with respect thereto in accordance with GAAP, (c) such contest
effectively suspends collection of the contested obligation and the enforcement
of any Lien securing such obligation and (d) the failure to make payment
pending such contest could not reasonably be expected to result in a Material
Adverse Effect.
SECTION
5.06. Maintenance
of Properties.
Each of
Holdings, the Parent Borrower and the Foreign Subsidiary Borrowers will, and
will cause each of the Subsidiaries to, keep and maintain all property material
to the conduct of their business, taken as a whole, in good working order and
condition, ordinary wear and tear excepted; provided
that the
foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 6.03 or disposition by
Section 6.05.
SECTION
5.07. Insurance.
Each of
Holdings, the Parent Borrower and the Foreign Subsidiary Borrowers will, and
will cause each of the Subsidiaries to, maintain insurance in such amounts
(with
no greater risk retention) and against such risks as are customarily maintained
by companies of established repute engaged in the same or similar businesses
operating in the same or similar locations, except where the failure to do
so
could not reasonably be expected to result in a Material Adverse Effect. Such
insurance shall be maintained with financially sound and reputable insurance
companies, except that a portion of such insurance program (not to exceed that
which is customary in the case of companies engaged in the same or similar
business or having similar properties similarly situated) may be effected
through self-insurance, provided
adequate
reserves therefor, in accordance with GAAP, are maintained. In addition, each
of
Holdings, the Parent Borrower and the Foreign Subsidiary Borrowers will, and
will cause each of its Subsidiaries to, maintain all insurance required to
be
maintained pursuant to the Security Documents. The Parent Borrower will furnish
to the Lenders, upon request of the Administrative Agent, information in
reasonable detail as to the insurance so maintained. All insurance policies
or
certificates (or certified copies thereof) with respect to such
insurance shall be endorsed to the Collateral Agent's reasonable
satisfaction for
84
the
benefit of the Lenders (including, without limitation, by naming the Collateral
Agent as loss payee or additional insured, as appropriate).
SECTION
5.08. Casualty
and Condemnation.
The
Parent Borrower (a) will furnish to the Administrative Agent and the
Lenders prompt written notice of casualty or other insured damage to any
material portion of any Collateral having a book value or fair market value
of
$1,000,000 or more or the commencement of any action or proceeding for the
taking of any Collateral having a book value or fair market value of $1,000,000
or more or any part thereof or interest therein under power of eminent domain
or
by condemnation or similar proceeding and (b) will ensure that the Net
Proceeds of any such event (whether in the form of insurance proceeds,
condemnation awards or otherwise) are collected and applied in accordance with
the applicable provisions of this Agreement and the Security
Documents.
SECTION
5.09. Books
and Records; Inspection and Audit Rights.
Each of
Holdings, the Parent Borrower and the Foreign Subsidiary Borrowers will, and
will cause each of the Subsidiaries to, keep proper books of record and account
in which full, true and correct entries are made of all dealings and
transactions in relation to its business and activities. Each of Holdings,
the
Parent Borrower and the Foreign Subsidiary Borrowers will, and will cause each
of the Subsidiaries to, permit any representatives designated by the
Administrative Agent or any Lender, upon reasonable prior notice, to visit
and
inspect its properties, to examine and make extracts from its books and records,
and to discuss its affairs, finances and condition with its officers and
independent accountants, all at such reasonable times and as often as reasonably
requested.
SECTION
5.10. Compliance
with Laws.
Each of
Holdings, the Parent Borrower and the Foreign Subsidiary Borrowers will, and
will cause each of the Subsidiaries to, comply with all laws, rules, regulations
and orders of any Governmental Authority applicable to it or its property,
except where the failure to do so, individually or in the aggregate, could
not
reasonably be expected to result in a Material Adverse Effect.
SECTION
5.11. Use
of
Proceeds and Letters of Credit.
The
Parent Borrower will use on the Restatement Effective Date the proceeds from
the
Xxxxxxx X-0 Term Loans to repay not less than $25,000,000 of Tranche D-1 Term
Loans. The Parent Borrower may use any remaining available proceeds from the
Tranche D-2 Term Loans to reduce Revolving Borrowings or otherwise to replace
liquidity under the Permitted Receivables Documents reduced by reason of the
North American Forging Sale in accordance with past practices or, to the extent
that the North American Forging Sale has not occurred, for general corporate
purposes. The proceeds of the Revolving Loans and Swingline Loans will be used,
subject to Sections 5.15 and 6.12, only for general corporate purposes and
to the extent permitted by Section 6.01(a)(i), Permitted Acquisitions. No
part of the proceeds of any Loan will be used, whether directly or indirectly,
for any purpose that entails a violation of any of the Regulations of the Board,
including Regulations T, U and X.
85
SECTION
5.12. Additional
Subsidiaries.
If any
additional Subsidiary is formed or acquired after the Effective Date, the Parent
Borrower will, within five Business Days after such Subsidiary is formed or
acquired, notify the Administrative Agent and the Lenders thereof and, within
five Business Days after such Subsidiary is formed or acquired, cause the
Collateral and Guarantee Requirement to be satisfied with respect to any Equity
Interest in or Indebtedness of such Subsidiary owned by or on behalf of any
Loan
Party.
SECTION
5.13. Further
Assurances.
(a) Each of Holdings, the Parent Borrower and the Foreign Subsidiary
Borrowers will, and will cause each Subsidiary Loan Party to, execute any and
all further documents, financing statements, agreements and instruments, and
take all such further actions (including the filing and recording of financing
statements, fixture filings, mortgages, deeds of trust, landlord waivers and
other documents), which may be required under any applicable law, or which
the
Administrative Agent or the Required Lenders may reasonably request, to cause
the Collateral and Guarantee Requirement to be and remain satisfied, all at
the
expense of the Loan Parties. Holdings, the Parent Borrower and the Foreign
Subsidiary Borrowers also agree to provide to the Administrative Agent, from
time to time upon request, evidence reasonably satisfactory to the
Administrative Agent as to the perfection and priority of the Liens created
or
intended to be created by the Security Documents.
(b) If
any
assets (including any real property or improvements thereto or any interest
therein) having a book value or fair market value of $1,000,000 or more in
the
aggregate are acquired by the Parent Borrower or any Subsidiary Loan Party
after
the Effective Date or through the acquisition of a Subsidiary Loan Party under
Section 5.12 (other than, in each case, assets constituting Collateral
under the Security Agreement or the Pledge Agreement that become subject to
the
Lien of the Security Agreement or the Pledge Agreement upon acquisition
thereof), the Parent Borrower or, if applicable, the relevant Foreign Subsidiary
Borrower will notify the Administrative Agent and the Lenders thereof, and,
if
reasonably requested by the Administrative Agent or the Required Lenders, the
Parent Borrower will cause such assets to be subjected to a Lien securing the
Obligations and will take, and cause the Subsidiary Loan Parties to take, such
actions as shall be necessary or reasonably requested by the Administrative
Agent to grant and perfect such Liens, including actions described in
paragraph (a) of this Section, all at the expense of the Loan
Parties.
SECTION
5.14. [intentionally
omitted].
SECTION
5.15. Available
Funds; Additional Equity.
(a) Promptly following the consummation of the TriMas Transaction,
the Parent Borrower shall deposit $205,000,000 of the TriMas Specified Proceeds
in an interest bearing money market account with the Administrative Agent.
The
proceeds of such account shall be distributed to the Parent Borrower in order
to
enable the Parent Borrower to (i) repurchase, redeem, repay, or otherwise
retire the Convertible Debentures within 90 days of the consummation of the
TriMas Transaction or deliver an irrevocable notice of redemption and deposit
such proceeds to the trustee thereunder within such 90-day
86
period
or
(ii) thereafter, to satisfy its obligations under the last sentence of
Section 2.11(d)(2).
(b) Until
the
date that the Convertible Debentures have been irrevocably repurchased,
redeemed, repaid or otherwise retired in full, the Parent Borrower will
designate as available for the repurchase, redemption, repayment or retirement
of Convertible Debentures an amount of unused Revolving Commitments equal to
the
Available Funds Reserve Amount, less the amount of cash in the Debenture
Account.
SECTION
5.16. North
American Forging Sale.
Within
60 days following the completion of the North American Forging Sale, the Parent
Borrower shall use the Net Proceeds from the North American Forging Sale to
terminate obligations in respect of operating leases and acquire related real
property subject to such leases using an aggregate amount of not less than
$45,000,000; provided,
that
(a) the Parent Borrower shall satisfy the Collateral and Guarantee Requirement
with respect to the property subject to operating leases terminated in
accordance with this Section 5.16 within 60 days of such termination, (b) if
the
Parent Borrower is unable to use the Net Proceeds from the North American
Forging Sale to terminate obligations in respect of operating leases and acquire
related real property subject to such leases using an aggregate amount of
$45,000,000 within 60 days following the completion of the North American
Forging Sale, any shortfall of application of the Net Proceeds from the North
American Forging Sale may be cured by using the Net Proceeds from the North
American Forging Sale to prepay Tranche D Term Loan Borrowings pursuant to
Section 2.11(a) in an aggregate principal amount equal to such shortfall on
or before the 60th day following the completion of the North American
Forging Sale and (c) any Net Proceeds of the North American Forging Sale not
applied in accordance with clauses (a) and (b) above shall be used to reduce
Revolving Borrowings and/or otherwise replace liquidity under the Permitted
Receivables Financing reduced by reason of the North American Forging Sale
in
accordance with past practices.
ARTICLE
VI
Negative
Covenants
Until
the
Commitments have expired or terminated and the principal of and interest on
each
Loan and all fees payable hereunder have been paid in full and all Letters
of
Credit have expired or terminated and all LC Disbursements shall have been
reimbursed, each of Holdings, the Parent Borrower and each Foreign Subsidiary
Borrower (as to itself only) covenants and agrees with the Lenders
that:
SECTION
6.01. Indebtedness;
Certain Equity Securities.
(a) None of Holdings, the Parent Borrower or any Foreign Subsidiary
Borrower will, nor will they permit any Subsidiary to, create, incur, assume
or
permit to exist any Indebtedness, except:
87
(i)
Indebtedness created under the Loan Documents and Indebtedness not exceeding
$20,000,000 incurred outside the United States that are supported by Letters
of
Credit; provided
that
(x)(A) Revolving Loans may only be used to (1) finance a Permitted
Acquisition (other than the New Castle Acquisition) if, in addition to the
satisfaction of all other requirements necessary to effect such Permitted
Acquisition set forth herein, after giving effect to such Permitted Acquisition
(and any related incurrence or repayment of Indebtedness), the Senior Leverage
Ratio is less than 2.00 to 1.00 and the amount of Revolving Commitments
available for general corporate purposes (other than Permitted Acquisitions)
at
such time shall be at least $100,000,000 and (2) finance the New Castle
Acquisition to the extent permitted under the defined term "New Castle
Acquisition" and (B) the amount of Revolving Loans used to finance
Permitted Acquisitions (other than the New Castle Acquisition) outstanding
at
any time shall not exceed $50,000,000 less the amount of Permitted Receivables
Financing outstanding under Section 6.01(a)(ii) to finance Permitted
Acquisitions and (y) until the Convertible Debentures have been irrevocably
repurchased, redeemed, repaid or otherwise retired in full, Revolving Loans
outstanding may not exceed the aggregate Revolving Commitments less the amount
designated as available for the repurchase, redemption, repayment or retirement
of Convertible Debentures pursuant to Section 5.15(b);
(ii)
the Permitted Receivables Financing; provided
that
(x) the Permitted Receivables Financing may only be used to finance a
Permitted Acquisition (other than the New Castle Acquisition) if, in addition
to
the satisfaction of all other requirements necessary to effect such Permitted
Acquisition set forth herein, after giving effect to such Permitted Acquisition
(and any related incurrence or repayment of Indebtedness), the Senior Leverage
Ratio is less than 2.00 to 1.00 and the amount of Revolving Commitments
available for general corporate purposes (other than Permitted Acquisitions)
at
such time shall be at least $100,000,000 and (y) the amount of Permitted
Receivables Financing used to finance Permitted Acquisitions (other than the
New
Castle Acquisition) outstanding at any one time shall not exceed $50,000,000
less the amount of Revolving Loans outstanding under Section 6.01(a)(i) to
finance Permitted Acquisitions;
(iii)
[intentionally omitted];
(iv)
Indebtedness existing on the date hereof and set forth in Schedule 6.01 to
the Original Credit Agreement and extensions, renewals and replacements of
any
such Indebtedness that do not increase the outstanding principal amount as
specified on such Schedule 6.01 or result in an earlier maturity date or
decreased weighted average life thereof;
(v)
the Convertible Debentures;
(vi)
the Existing Subordinated Notes;
88
(vii)
the Permitted Subordinated Notes and the Permitted Senior Notes; provided
that
(x) Permitted Subordinated Notes may only be used for the repayment of
Revolving Borrowings and obligations arising in respect of the Permitted
Receivables Financing if, after giving effect to the incurrence of such
Permitted Subordinated Notes, the Senior Leverage Ratio is less than 2.75 to
1.00 and (y) the aggregate amount of proceeds of Permitted Subordinated
Notes used for the repayment of Revolving Borrowings and obligations arising
in
respect of the Permitted Receivables Financing may not exceed
$100,000,000;
(viii)
Indebtedness of the Parent Borrower to any Subsidiary and of any Subsidiary
to
the Parent Borrower or any other Subsidiary; provided
that
Indebtedness of any Subsidiary that is not a Domestic Loan Party to the Parent
Borrower or any Subsidiary Loan Party shall be subject to
Section 6.04;
(ix)
Guarantees by the Parent Borrower of Indebtedness of any Subsidiary and by
any
Subsidiary of Indebtedness of the Parent Borrower or any other Subsidiary;
provided
that (a)
Guarantees by the Parent Borrower or any Subsidiary Loan Party of Indebtedness
of any Subsidiary that is not a Domestic Loan Party shall be subject to Section
6.04 and (b) this clause (ix) shall not apply to Guarantees of the Existing
Subordinated Notes, Permitted Subordinated Notes, the Permitted Senior Notes
or
the TriMas Notes;
(x)
Guarantees by Holdings, the Parent Borrower or any Subsidiary, as the case
may
be, in respect of the Existing Subordinated Notes, Permitted Subordinated Notes
and the Permitted Senior Notes; provided
that
none of Holdings, the Parent Borrower or any Subsidiary, as the case may be,
shall Guarantee the Existing Subordinated Notes, the Permitted Subordinated
Notes or the Permitted Senior Notes unless (A) it also has Guaranteed the
Obligations pursuant to the Guarantee Agreement and (B) such Guarantee of
the Existing Subordinated Notes or the Permitted Subordinated Notes is
subordinated to such Guarantee of the Obligations on terms no less favorable
to
the Lenders than the subordination provisions of the Existing Subordinated
Notes;
(xi)
Indebtedness of the Parent Borrower or any Subsidiary incurred to finance the
acquisition, construction or improvement of any fixed or capital assets,
including Capital Lease Obligations and any Indebtedness assumed in connection
with the acquisition of any such assets or secured by a Lien on any such assets
prior to the acquisition thereof, and extensions, renewals and replacements
of
any such Indebtedness that do not increase the outstanding principal amount
thereof or result in an earlier maturity date or decreased weighted average
life
thereof; provided
that
(A) such Indebtedness is incurred prior to or within 180 days after
such acquisition or the completion of such construction or improvement and
(B) the aggregate principal amount of Indebtedness permitted by this
clause (xi) shall not exceed $50,000,000 at any time
outstanding;
(xii)
Indebtedness arising as a result of an Acquisition Lease Financing;
89
(xiii)
Indebtedness of any Person that becomes a Subsidiary after the date hereof;
provided
that
(A) such Indebtedness exists at the time such Person becomes a Subsidiary
and is not created in contemplation of or in connection with such Person
becoming a Subsidiary and (B) the aggregate principal amount of
Indebtedness permitted by this clause (xiii) shall not exceed $25,000,000
at any time outstanding, less the liquidation value of any outstanding Assumed
Preferred Stock;
(xiv)
Indebtedness of Holdings, the Parent Borrower or any Subsidiary in respect
of
workers' compensation claims, self-insurance obligations, performance bonds,
surety appeal or similar bonds and completion guarantees provided by Holdings,
the Parent Borrower and the Subsidiaries in the ordinary course of their
business; and
(xv)
other unsecured Indebtedness of Holdings, the Parent Borrower or any Subsidiary
in an aggregate principal amount not exceeding $20,000,000 at any time
outstanding, less the liquidation value of any applicable Qualified Holdings
Preferred Stock issued and outstanding pursuant to clause (b) of the
definition of Qualified Holdings Preferred Stock.
(b) None
of
Holdings, the Parent Borrower or any Foreign Subsidiary Borrower will, nor
will
they permit any Subsidiary to, issue any preferred stock or other preferred
Equity Interests, except (i) Holdings Preferred Stock, (ii) Qualified
Holdings Preferred Stock, (iii) Assumed Preferred Stock and
(iv) preferred stock or preferred Equity Interests held by Holdings, the
Parent Borrower or any Subsidiary.
SECTION
6.02. Liens.
None of
Holdings, the Parent Borrower or any Foreign Subsidiary Borrower will, nor
will
they permit any Subsidiary to, create, incur, assume or permit to exist any
Lien
on any property or asset now owned or hereafter acquired by it, or assign or
sell any income or revenues (including accounts receivable) or rights in respect
of any thereof, except:
(a)
Liens
created under the Loan Documents;
(b)
Permitted Encumbrances;
(c)
(i) Liens in respect of the Permitted Receivables Financing and the Foreign
Factoring Arrangement, (ii) second priority Liens in respect of the
Permitted Senior Notes, so long as the trustee or agent thereunder has entered
into the Intercreditor Agreement and (iii) Liens in respect of the New Castle
Sale and Leaseback as contemplated in the definition of "New Castle Sale and
Leaseback";
(d)
any
Lien on any property or asset of the Parent Borrower or any Subsidiary existing
on the date hereof and set forth in Schedule 6.02 to the Original Credit
Agreement; provided
that (i)
such Lien shall not apply to any other property or asset of the Parent Borrower
or any Subsidiary and (ii) such Lien shall secure only those obligations which
it secures on the date hereof and
90
extensions,
renewals and replacements thereof that do not increase the outstanding principal
amount thereof;
(e)
any
Lien existing on any property or asset prior to the acquisition thereof by
the
Parent Borrower or any Subsidiary or existing on any property or asset of any
Person that becomes a Subsidiary after the date hereof prior to the time such
Person becomes a Subsidiary; provided
that
(A) such Lien is not created in contemplation of or in connection with such
acquisition or such Person becoming a Subsidiary , as the case may be,
(B) such Lien shall not apply to any other property or assets of the Parent
Borrower or any Subsidiary and (C) such Lien shall secure only those
obligations which it secures on the date of such acquisition or the date such
Person becomes a Subsidiary, as the case may be;
(f)
Liens
on fixed or capital assets acquired, constructed or improved by, or in respect
of Capital Lease Obligations of, the Parent Borrower or any Subsidiary;
provided
that
(A) such security interests secure Indebtedness permitted by
clause (xi) of Section 6.01(a), (B) such security interests and
the Indebtedness secured thereby are incurred prior to or within 180 days
after such acquisition or the completion of such construction or improvement,
(C) the Indebtedness secured thereby does not exceed the cost of acquiring,
constructing or improving such fixed or capital assets and (D) such
security interests shall not apply to any other property or assets of the Parent
Borrower or any Subsidiary;
(g)
Liens, with respect to any Mortgaged Property, described in Schedule B-2 of
the
title policy covering such Mortgaged Property;
(h)
other
Liens securing liabilities permitted hereunder in an aggregate amount not
exceeding (i) in respect of consensual Liens, $15,000,000 and (ii) in
respect of all such Liens, $20,000,000, in each case at any time outstanding;
and
(i)
Liens
on equipment with an orderly liquidation value of not more than $13,000,000
securing obligations under leases expressly permitted under Section 6.06(b)(ii);
provided
that,
with respect to each such lease, such equipment and its aggregate orderly
liquidation value shall be specified on a schedule delivered to the
Administrative Agent by the Parent Borrower no later than three Business Days
prior to the Parent Borrower's or any Subsidiary's entering into such
lease.
SECTION
6.03. Fundamental
Changes.
(a) None of Holdings, the Parent Borrower or any Foreign Subsidiary
Borrower will, nor will they permit any Subsidiary to, merge into or consolidate
with any other Person, or permit any other Person to merge into or consolidate
with it, or liquidate or dissolve, except that, if at the time thereof and
immediately after giving effect thereto no Default shall have occurred and
be
continuing (i) any Subsidiary may merge into the Parent Borrower in a
transaction in which the Parent Borrower is the surviving corporation,
(ii) any Subsidiary may merge into any Subsidiary in a transaction in which
the surviving entity is a Subsidiary and (if any party to such merger is a
Subsidiary Loan Party) is a Subsidiary Loan Party (provided
that,
with respect to any such mergers involving the Foreign Subsidiary
91
Borrower,
the surviving entity of such mergers shall be a Subsidiary Borrower or a Foreign
Subsidiary Borrower, as the case may be) and (iii) any Subsidiary (other
than a Subsidiary Loan Party) may liquidate or dissolve if the Parent Borrower
determines in good faith that such liquidation or dissolution is in the best
interests of the Parent Borrower and is not materially disadvantageous to the
Lenders; provided
that any
such merger involving a Person that is not a wholly owned Subsidiary immediately
prior to such merger shall not be permitted unless also permitted by
Section 6.04.
(b) The
Parent Borrower will not, and will not permit any of its Subsidiaries to, engage
to any material extent in any business other than businesses of the type
conducted by the Parent Borrower and its Subsidiaries on the date of execution
of this Agreement and businesses reasonably related thereto.
(c) Holdings
will not engage in any business or activity other than (i) the ownership of
all the outstanding shares of capital stock of the Parent Borrower and the
Saturn Subsidiary, (ii) performing its obligations in respect of the
Restricted Stock Award, (iii) performing its obligations (A) under the
Loan Documents, (B) as co-obligor with the Parent Borrower in respect of
the Convertible Debentures and (C) under the Permitted Receivables
Financing, (iv) activities incidental thereto and to Holdings' existence,
(v) activities related to the performance of all its obligations under the
Recapitalization Agreement and in respect of the Transactions, (vi) performing
its obligations under guarantees in respect of sale and leaseback transactions
permitted by Section 6.06 and (vii) other activities (including the incurrence
of Indebtedness and the issuance of its Equity Interests) that are permitted
by
this Agreement. Holdings will not own or acquire any assets (other than shares
of capital stock of the Parent Borrower and the Saturn Subsidiary, any
immaterial assets not subject to the Asset Dropdown, cash and Permitted
Investments) or incur any liabilities (other than liabilities imposed by law,
including tax liabilities, liabilities related to its existence and permitted
business and activities specified in the immediately preceding
sentence).
(d) The
Saturn Subsidiary will not engage in any business or business activity other
than (i) holding Equity Interests in Saturn held on the date of the
execution of this Agreement and any property received in respect thereof,
(ii) performing its obligations in respect of the Saturn Sale and the
Saturn Proceeds Distribution, (iii) activities permitted by its certificate
of incorporation and (iv) activities incidental thereto and to the Saturn
Subsidiary's existence. The Saturn Subsidiary will not own or acquire any assets
(other than such equity investments in Saturn) or incur any liabilities (other
than liabilities imposed by law, including tax liabilities, and other
liabilities related to its existence and permitted business and activities
specified in the immediately preceding sentence).
(e) The
Receivables Subsidiary will not engage in any business or business activity
other than the activities related to the Permitted Receivables Financing and
its
existence. The Receivables Subsidiary will not own or acquire any assets (other
than the receivables subject to the Permitted Receivables Financing) or incur
any liabilities (other than the liabilities imposed by law including tax
liabilities, and other liabilities related to its existence and permitted
business and activities specified in the
92
immediately
preceding sentence, including liabilities arising under the Permitted
Receivables Financing).
SECTION
6.04. Investments,
Loans, Advances, Guarantees and Acquisitions.
None of
the Parent Borrower, any Subsidiary Loan Party or any Foreign Subsidiary
Borrower will, nor will they permit any Subsidiary to, purchase, hold or acquire
(including pursuant to any merger with any Person that was not a wholly owned
Subsidiary prior to such merger) any Equity Interests in or evidences of
indebtedness or other securities (including any option, warrant or other right
to acquire any of the foregoing) of, make or permit to exist any loans or
advances to, Guarantee any obligations of, or make or permit to exist any
investment or any other interest in, any other Person, or purchase or otherwise
acquire (in one transaction or a series of transactions) any assets of any
other
Person constituting a business unit, except:
(a)
Permitted Investments;
(b)
investments existing on the date hereof and set forth on Schedule 6.04 to the
Original Credit Agreement and investments in TriMas and its subsidiaries
existing immediately after the consummation of the TriMas
Transaction;
(c)
Permitted Acquisitions;
(d)
investments by the Parent Borrower and the Subsidiaries in Equity Interests
in
their respective Subsidiaries that exist immediately prior to any applicable
transaction; provided
that (i)
any such Equity Interests held by a Loan Party shall be pledged pursuant to
the
Pledge Agreement or any applicable Foreign Security Documents, as the case
may
be, to the extent required by this Agreement and (ii) the aggregate amount
of
investments (excluding any such investments, loans, advances and Guaranties
to
such Subsidiaries that are assumed and exist on the date any Permitted
Acquisition is consummated and that are not made, incurred or created in
contemplation of or in connection with such Permitted Acquisition) by Loan
Parties in, and loans and advances by Loan Parties to, and Guarantees by Loan
Parties of Indebtedness of, Subsidiaries that are not Domestic Loan Parties
made
after the Effective Date shall not exceed 5% of Holdings' consolidated total
assets determined in accordance with GAAP at any time outstanding;
(e)
loans
or advances made by the Parent Borrower to any Subsidiary and made by any
Subsidiary to the Parent Borrower or any other Subsidiary; provided
that (i)
any such loans and advances made by a Loan Party shall be evidenced by a
promissory note pledged pursuant to the Pledge Agreement and (ii) the amount
of
such loans and advances made by Loan Parties to Subsidiaries that are not Loan
Parties shall be subject to the limitation set forth in clause (d)
above;
(f)
Guarantees permitted by Section 6.01(a)(x);
(g)
investments arising as a result of the Permitted Receivables
Financing;
93
(h)
investments constituting permitted Capital Expenditures under
Section 6.15;
(i)
investments received in connection with the bankruptcy or reorganization of,
or
settlement of delinquent accounts and disputes with, customers and suppliers,
in
each case in the ordinary course of business;
(j)
any
investments in or loans to any other Person received as noncash consideration
for sales, transfers, leases and other dispositions permitted by Section
6.05;
(k)
Guarantees by the Parent Borrower and the Subsidiaries of leases entered into
by
any Subsidiary as lessee; provided
that the
amount of such Guarantees made by Loan Parties to Subsidiaries that are not
Loan
Parties shall be subject to the limitation set forth in clause (d)
above;
(l)
extensions of credit in the nature of accounts receivable or notes receivable
in
the ordinary course of business;
(m)
loans
or advances to employees made in the ordinary course of business consistent
with
prudent business practice and not exceeding $5,000,000 in the aggregate
outstanding at any one time;
(n)
investments in the form of Hedging Agreements permitted under Section
6.07;
(o)
investments by the Parent Borrower or any Subsidiary in (i) the capital stock
of
a Receivables Subsidiary and (ii) other interests in a Receivables Subsidiary,
in each case to the extent required by the terms of the Permitted Receivables
Financing;
(p)
payroll, travel and similar advances to cover matters that are expected at
the
time of such advances ultimately to be treated as expenses for accounting
purposes and that are made in the ordinary course of business; and
(q)
investments, loans or advances in addition to those permitted by
clauses (a) through (p) above not exceeding in the aggregate
$25,000,000 at any time outstanding.
SECTION
6.05. Asset
Sales.
None of
Holdings, the Parent Borrower or any Foreign Subsidiary Borrower will, nor
will
they permit any Subsidiary to, sell, transfer, lease or otherwise dispose of
any
asset, including any Equity Interest owned by it, nor will they permit any
Subsidiary to issue any additional Equity Interest in such Subsidiary,
except:
(a)
sales, transfers, leases and other dispositions of inventory, used or surplus
equipment, Permitted Investments and Investments referred to in Section 6.04(i)
in the ordinary course of business;
94
(b)
sales, transfers and dispositions to the Parent Borrower or a Subsidiary;
provided
that any
such sales, transfers or dispositions involving a Subsidiary that is not a
Domestic Loan Party shall be made in compliance with
Section 6.09;
(c)
the
Saturn Sale or the disposition of Equity Interests in the Saturn Subsidiary
in
lieu thereof;
(d)
sales
of accounts receivables and related assets pursuant to the Permitted Receivables
Financing;
(e)
the
creation of Liens permitted by Section 6.02 and dispositions as a result
thereof;
(f)
(i)
sales or transfers that are permitted sale and leaseback transactions pursuant
to Section 6.06(a) and (b), (ii) sales and transfers pursuant to the
New Castle Sale and Leaseback and Xxxxx Sale and Leaseback, and (iii) sales
and transfers of the TriMas Interest;
(g)
sales
and transfers that constitute part of an Acquisition Lease
Financing;
(h)
Restricted Payments permitted by Section 6.08;
(i)
transfers and dispositions constituting investments permitted under Section
6.04;
(j)
sales, transfers and other dispositions of property identified on Schedule
6.05
to the Original Credit Agreement;
(k)
sales, transfers and other dispositions of assets (other than Equity Interests
in a Subsidiary) that are not permitted by any other clause of this Section;
provided
that the
aggregate fair market value of all assets sold, transferred or otherwise
disposed of in reliance upon this clause (k) shall not exceed $15,000,000 during
any fiscal year of the Parent Borrower; provided
that
such amount shall be increased, in respect of the fiscal year ending on
December 31, 2002, and each fiscal year thereafter by an amount equal to
the total unused amount of such permitted sales, transfers and other
dispositions for the immediately preceding fiscal year (without giving effect
to
the amount of any unused permitted sales, transfers and other dispositions
that
were carried forward to such preceding fiscal year);
(l)
sales
of accounts receivable and related assets pursuant to a Foreign Factoring
Arrangement; and
(m)
the
North American Forging Sale.
95
provided
that (x)
all sales, transfers, leases and other dispositions permitted hereby (other
than
those permitted by clause (b) above) shall be made for fair value and (y)
all sales, transfers, leases and other dispositions permitted by
clauses (j) and (k) above shall be for at least 85% cash
consideration.
SECTION
6.06. Sale
and Leaseback Transactions.
From and
after the Restatement Effective Date, none of the Parent Borrower or any Foreign
Subsidiary Borrower will, nor will they permit any Subsidiary to, enter into
any
arrangement, directly or indirectly, whereby it shall sell or transfer any
property, real or personal, used or useful in its business, whether now owned
or
hereinafter acquired, and thereafter rent or lease such property or other
property that it intends to use for substantially the same purpose or purposes
as the property sold or transferred, except for, solely with respect to property
not owned as of the Restatement Effective Date (other than property which
becomes or is required to become Collateral as a result of the termination
of
operating leases pursuant to Section 5.16), any such sale of any fixed or
capital assets that is made for cash consideration in an amount not less than
the cost of such fixed or capital asset and is consummated within 180 days
after
the Parent Borrower, such Foreign Subsidiary Borrower or such Subsidiary
acquires or completes the construction of such fixed or capital asset, so long
as the Capital Lease Obligations associated therewith are permitted by
Section 6.01(a)(xi).
SECTION
6.07. Hedging
Agreements.
None of
the Parent Borrower or any Foreign Subsidiary Borrower will, nor will they
permit any Subsidiary to, enter into any Hedging Agreement, other
than Hedging Agreements entered into in the ordinary course of business and
which are not speculative in nature to hedge or mitigate risks to which the
Parent Borrower or any Subsidiary is exposed in the conduct of its business
or
the management of its assets or liabilities.
SECTION
6.08. Restricted
Payments; Certain Payments of Indebtedness.
(a) None of Holdings, the Parent Borrower or any Foreign Subsidiary
Borrower will, nor will they permit any Subsidiary to, declare or make, or
agree
to pay or make, directly or indirectly, any Restricted Payment, or incur any
obligation (contingent or otherwise) to do so, except:
(i)
Holdings may (x) declare and pay dividends with respect to its Equity
Interests payable solely in additional Equity Interests of Holdings,
(y) repurchase Equity Interests not to exceed $10,000,000 from former
shareholders of its existing or former Subsidiaries that received such Equity
Interests of Holdings prior to the date hereof and (z) repurchase the preferred
stock of Holdings in an aggregate amount not to exceed $20,000,000, provided
that, at
the time of such repurchase and after giving effect thereto, no Default or
Event
of Default shall have occurred and be continuing and Holdings and the Parent
Borrower are in compliance with Sections 6.13 and 6.14;
(ii)
Subsidiaries may declare and pay dividends ratably with respect to their capital
stock;
96
(iii)
the
Parent Borrower may make payments to Holdings to permit it to make, and Holdings
may make, Restricted Payments, not exceeding $2,000,000 during any fiscal year
(provided
that
such amount shall be increased, in respect of the fiscal year ending on
December 31, 2002, and each fiscal year thereafter by an amount equal to
the total unused amount of such Restricted Payments for the immediately
preceding fiscal year (without giving effect to the amount of any unused amounts
that were carried forward to such preceding fiscal year) not to exceed in the
aggregate $16,000,000), in each case pursuant to and in accordance with stock
option plans, equity purchase programs or agreements or other benefit plans,
in
each case for management or employees or former employees of the Parent Borrower
and the Subsidiaries;
(iv)
the
Parent Borrower may pay dividends to Holdings at such times and in such amounts
(A) as shall be necessary to enable Holdings to make payments permitted by
clause (z) of Section 6.08(a)(i) and Sections 6.08(a)(v) and (vi) and
(B) as shall be necessary to permit Holdings to discharge its other
permitted liabilities;
(v)
Holdings may pay Holdings Preferred Dividends and interest in respect of its
Indebtedness permitted hereunder, provided
that, at
the time of such payment and after giving effect thereto, no Default or Event
of
Default shall have occurred and be continuing and Holdings and the Parent
Borrower are in compliance with Sections 6.13 and 6.14;
(vi)
Holdings may make payments to the extent contemplated by the Recapitalization
Agreement, including payments in respect of the restricted stock granted
pursuant to the Restricted Stock Obligation (including payments in respect
of
the Restricted Stock Obligation after the date such payments were scheduled
to
have been made), provided that, at the time of such payment in respect of the
Restricted Stock Obligation and after giving effect thereto, no Event of Default
shall have occurred and be continuing;
(vii)
Holdings may (x) pay the Saturn Proceeds Distribution and
(y) repurchase, redeem, repay or otherwise retire the Convertible
Debentures with Available Funds, proceeds from Permitted Senior Notes (to the
extent permitted by such defined term), Permitted Subordinated Notes or
issuances or sales of capital stock of Holdings; and
(viii)
Parent Borrower may make payments to Holdings to permit it to make, and Holdings
may make payments permitted by Sections 6.09(f), (g), (h) and (i); provided
that, at
the time of such payment and after giving effect thereto, no Default or Event
of
Default shall have occurred and be continuing and Holdings and the Parent
Borrower are in compliance with Sections 6.13 and 6.14; provided,
further
that any
payments that are prohibited because of the immediately preceding proviso shall
accrue and may be made as so accrued upon the curing or waiver of such Default,
Event of Default or noncompliance.
97
(b) None
of
Holdings, the Parent Borrower or any Foreign Subsidiary Borrower will, nor
will
they permit any Subsidiary to, make or agree to pay or make, directly or
indirectly, any payment or other distribution (whether in cash, securities
or
other property) of or in respect of principal of or interest on any
Indebtedness, or any payment or other distribution (whether in cash, securities
or other property), including any sinking fund or similar deposit, on account
of
the purchase, redemption, retirement, acquisition, cancellation or termination
of any Indebtedness, except:
(i)
payment of Indebtedness created under the Loan Documents;
(ii)
the
repurchase, redemption, repayment or other retirement of the Convertible
Debentures as permitted by Section 6.08(a)(vii);
(iii)
payment of regularly scheduled interest and principal payments as and when
due
in respect of any Indebtedness, other than payments in respect of the
subordinated Indebtedness prohibited by the subordination provisions
thereof;
(iv)
refinancings of Indebtedness to the extent permitted by Section 6.01;
(v)
payment of secured Indebtedness out of the proceeds of any sale or transfer
of
the property or assets securing such Indebtedness; and
(vi)
payment of Indebtedness or other obligations made pursuant to Section 5.16.
(c) None
of
Holdings, the Parent Borrower or any Foreign Subsidiary Borrower will, nor
will
they permit any Subsidiary to, enter into or be party to, or make any payment
under, any Synthetic Purchase Agreement unless (i) in the case of any
Synthetic Purchase Agreement related to any Equity Interest of Holdings, the
payments required to be made by Holdings are limited to amounts permitted to
be
paid under Section 6.08(a), (ii) in the case of any Synthetic Purchase
Agreement related to any Restricted Indebtedness, the payments required to
be
made by Holdings, the Parent Borrower or the Subsidiaries thereunder are limited
to the amount permitted under Section 6.08(b) and (iii) in the case of
any Synthetic Purchase Agreement, the obligations of Holdings, the Parent
Borrower and the Subsidiaries thereunder are subordinated to the Obligations
on
terms satisfactory to the Required Lenders.
SECTION
6.09. Transactions
with Affiliates.
None of
Holdings, the Parent Borrower or any Foreign Subsidiary Borrower will, nor
will
they permit any Subsidiary to, sell, lease or otherwise transfer any property
or
assets to, or purchase, lease or otherwise acquire any property or assets from,
or otherwise engage in any other transactions with, any of its Affiliates,
except:
(a)
transactions that do not involve Holdings and are at prices and on terms and
conditions not less favorable to the Parent Borrower or such Subsidiary than
could be obtained on an arm's-length basis from unrelated third
parties;
98
(b)
transactions between or among the Parent Borrower and the Subsidiaries not
involving any other Affiliate (to the extent not otherwise prohibited by other
provisions of this Agreement);
(c)
any
Restricted Payment permitted by Section 6.08;
(d)
transactions pursuant to agreements in effect on the Effective Date and listed
on Schedule 6.09 to the Original Credit Agreement (provided
that
this clause (d) shall not apply to any extension, or renewal of, or any
amendment or modification of such agreements that is less favorable to the
Parent Borrower or the applicable Subsidiaries, as the case may
be);
(e)
(i)
the Transactions and (ii) the TriMas Transactions and the TriMas Affiliate
Agreements (provided
that
this clause (e)(ii) shall not apply to any extension, or renewal of, or any
amendment or modification of such agreements that is less favorable in any
material respect, taken as a whole, to the Parent Borrower or the applicable
Subsidiaries, as the case may be);
(f)
the
payment, on a quarterly basis, of management fees to Heartland and/or its
Affiliates in accordance with the Heartland Management Agreement, provided
that the
annual amount of such management fees shall not exceed $4,000,000;
(g)
the
reimbursement of Heartland and/or its Affiliates for their reasonable
out-of-pocket expenses incurred by them in connection with the Transactions
and
performing management services to Holdings, the Parent Borrower and the
Subsidiaries, pursuant to the Heartland Management Agreement;
(h)
the
payment of one time fees to Heartland and/or its Affiliates in connection with
any Permitted Acquisition, such fees to be payable at the time of each such
acquisition and not to exceed the percentage of the aggregate consideration
paid
by Holdings, the Parent Borrower and its Subsidiaries for any such acquisition
as specified in the Heartland Management Agreement; and
(i)
payments to Heartland and/or its Affiliates for any financial advisor,
underwriter or placement services or other investment banking activities
rendered to Holdings, the Parent Borrower or the Subsidiaries, pursuant to
the
Heartland Management Agreement.
SECTION
6.10. Restrictive
Agreements.
None of
Holdings, the Parent Borrower or any Foreign Subsidiary Borrower will, nor
will
they permit any Subsidiary to, directly or indirectly, enter into, incur or
permit to exist any agreement or other arrangement that prohibits, restricts
or
imposes any condition upon (a) the ability of Holdings, the Parent Borrower
or any Subsidiary to create, incur or permit to exist any Lien upon any of
its
property or assets, or (b) the ability of any Subsidiary to pay dividends
or other distributions with respect to any shares of its capital stock or to
make or repay loans or advances to the Parent Borrower or any other Subsidiary
or to
99
Guarantee
Indebtedness of the Parent Borrower or any other Subsidiary; provided
that
(i) the foregoing shall not apply to restrictions and conditions imposed by
law or by any (A) Loan Document or Permitted Receivables Document or (B) any
Existing Subordinated Notes, Permitted Subordinated Notes and Permitted Senior
Notes that are customary, in the reasonable judgment of the board of directors
thereof, for the market in which such Indebtedness is issued so long as such
restrictions do not prevent, impede or impair (x) the creation of Liens and
Guarantees in favor of the Lenders under the Loan Documents or (y) the
satisfaction of the obligations of the Loan Parties under the Loan Documents,
(ii) the foregoing shall not apply to restrictions and conditions existing
on the date hereof identified on Schedule 6.10 to the Original Credit Agreement
(but shall apply to any extension or renewal of, or any amendment or
modification expanding the scope of, any such restriction or condition),
(iii) the foregoing shall not apply to customary restrictions and
conditions contained in agreements relating to the sale of a Subsidiary pending
such sale, provided,
further,
that
such restrictions and conditions apply only to the Subsidiary that is to be
sold
and such sale is permitted hereunder, (iv) clause (a) of the foregoing
shall not apply to restrictions or conditions imposed by any agreement relating
to secured Indebtedness permitted by this Agreement if such restrictions or
conditions apply only to the property or assets securing such Indebtedness
and
(v) clause (a) of the foregoing shall not apply to customary
provisions in leases and other agreements restricting the assignment
thereof.
SECTION
6.11. Amendment
of Material Documents.
None of
Holdings, the Parent Borrower or any Foreign Subsidiary Borrower will, nor
will
they permit any Subsidiary (including the Receivables Subsidiary and the Saturn
Subsidiary) to, amend, modify or waive any of its rights under (a) its
certificate of incorporation, by-laws or other organizational documents,
(b) the Recapitalization Documents and (c) any Material Agreement, in
each case to the extent such amendment, modification or waiver is adverse to
the
Lenders.
SECTION
6.12. Convertible
Debentures. Holdings
shall not repurchase, redeem, repay or otherwise retire any Convertible
Debentures except as permitted by Section 6.08(a)(vii).
SECTION
6.13. Interest
Expense Coverage Ratio. Neither
Holdings nor the Parent Borrower will permit the ratio of (a) Consolidated
EBITDA to (b) the sum of (i) Consolidated Cash Interest Expense and
(ii) Holdings Preferred Dividends, in each case for any period of four
consecutive fiscal quarters ending on the last date of any fiscal quarter set
forth below, to be less than the ratio set forth below opposite such
period:
Period
|
Ratio
|
First
Fiscal Quarter of 2005
|
2.10
to 1.00
|
Second
Fiscal Quarter of 2005
|
2.15
to 1.00
|
Third
Fiscal Quarter of 2005
|
2.20
to 1.00
|
Fourth
Fiscal Quarter of 2005
|
2.20
to 1.00
|
100
Period
|
Ratio
|
First
Fiscal Quarter of 2006
to
the Fourth Fiscal Quarter of 2006
|
1.75
to 1.00
|
First
Fiscal Quarter of 2007
to
the Fourth Fiscal Quarter of 2007
|
2.00
to 1.00
|
First
Fiscal Quarter of 2008
to
the Fourth Fiscal Quarter of 2008
|
2.25
to 1.00
|
First
Fiscal Quarter of 2009
and
thereafter
|
2.50
to 1.00
|
SECTION
6.14. Leverage
Ratio.
Neither
Holdings nor the Parent Borrower will permit the Leverage Ratio as of the last
date of any fiscal quarter set forth below to exceed the ratio set forth
opposite such period:
Period
|
Ratio
|
First
and Second Fiscal Quarters of 2005
|
5.25
to 1.00
|
Third
Fiscal Quarter of 2005
|
5.00
to 1.00
|
Fourth
Fiscal Quarter of 2005
|
4.75
to 1.00
|
First
Fiscal Quarter of 2006
to
the Fourth Fiscal Quarter of 2006
|
5.25
to 1.00
|
First
Fiscal Quarter of 2007
to
the Fourth Fiscal Quarter of 2007
|
5.00
to 1.00
|
First
Fiscal Quarter of 2008
to
the Fourth Fiscal Quarter of 2008
|
4.50
to 1.00
|
First
Fiscal Quarter of 2009 and each
fiscal
quarter thereafter
|
4.00
to 1.00
|
SECTION
6.15. Capital
Expenditures.
(a) Neither Holdings nor the Parent Borrower will permit the
aggregate amount of Capital Expenditures for any period to exceed the applicable
Permitted Capital Expenditure Amount for such period, provided that for any
fiscal year during which the North American forging business is owned by the
Parent Borrower, the Parent Borrower shall be entitled to spend an additional
$15,000,000 per fiscal year, pro rated for ownership for a portion of the fiscal
year.
(b) Notwithstanding
the foregoing, the Parent Borrower may in respect of the fiscal year ending
on
December 31, 2007, and each fiscal year thereafter, increase the amount of
Capital Expenditures permitted to be made during such fiscal year pursuant
to
Section 6.15(a) by an amount equal to the total unused amount of permitted
Capital Expenditures for the immediately preceding fiscal year (without giving
effect to the amount of any unused permitted Capital Expenditures that were
carried forward to such preceding fiscal year).
101
SECTION
6.16. Consolidated
Lease Expense.
Neither
Holdings nor the Parent Borrower will permit Consolidated Lease Expense
associated with Capital Expenditures to exceed 30% of Capital Expenditures
for
such fiscal year.
ARTICLE
VII
Events
of
Default
If
any of
the following events ("Events
of Default")
shall
occur:
(a)
the
Parent Borrower or any Foreign Subsidiary Borrower shall fail to pay any
principal of any Loan or any reimbursement obligation in respect of any LC
Disbursement when and as the same shall become due and payable, whether at
the
due date thereof or at a date fixed for prepayment thereof or
otherwise;
(b)
the
Parent Borrower or any Foreign Subsidiary Borrower shall fail to pay any
interest on any Loan or any fee or any other amount (other than an amount
referred to in clause (a) of this Article) payable under this Agreement or
any other Loan Document, when and as the same shall become due and payable,
and
such failure shall continue unremedied for a period of five Business
Days;
(c)
any
representation or warranty made or deemed made by or on behalf of Holdings,
the
Parent Borrower, any Foreign Subsidiary Borrower or any Subsidiary in or in
connection with any Loan Document or any amendment or modification thereof
or
waiver thereunder, or in any report, certificate, financial statement or other
document furnished pursuant to or in connection with any Loan Document or any
amendment or modification thereof or waiver thereunder, shall prove to have
been
incorrect in any material respect when made or deemed made;
(d)
Holdings, the Parent Borrower or any Foreign Subsidiary Borrower shall fail
to
observe or perform any covenant, condition or agreement contained in
Section 5.02, 5.04 (with respect to the existence of Holdings, the Parent
Borrower or any Foreign Subsidiary Borrower and ownership of the Foreign
Subsidiary Borrowers), 5.11, 5.15 or 5.16 or in Article VI;
(e)
any
Loan Party shall fail to observe or perform any covenant, condition or agreement
contained in any Loan Document (other than those specified in clause (a),
(b) or (d) of this Article), and such failure shall continue
unremedied for a period of 30 days after notice thereof from the
Administrative Agent to the Parent Borrower (which notice will be given at
the
request of any Lender);
(f)
Holdings, the Parent Borrower or any Subsidiary shall fail to make any
payment of principal or interest in respect of any Material Indebtedness, when
and as the same shall become due and payable after giving effect to any
applicable grace period with respect thereto;
102
(g)
any
event or condition occurs that results in any Material Indebtedness becoming
due
prior to its scheduled maturity or that enables or permits the holder or holders
of any Material Indebtedness or any trustee or agent on its or their behalf
to
cause any Material Indebtedness to become due, or to require the prepayment,
repurchase, redemption or defeasance thereof, prior to its scheduled maturity;
provided
that
this clause (g) shall not apply to secured Indebtedness that becomes due as
a result of the voluntary sale or transfer of the property or assets securing
such Indebtedness;
(h)
an
involuntary proceeding shall be commenced or an involuntary petition shall
be
filed seeking (i) liquidation, reorganization or other relief in respect of
Holdings, the Parent Borrower or any Subsidiary or its debts, or of a
substantial part of its assets, under any Federal, state or foreign bankruptcy,
insolvency, receivership or similar law now or hereafter in effect or
(ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for Holdings, the Parent Borrower or any
Subsidiary or for a substantial part of its assets, and, in any such case,
such
proceeding or petition shall continue undismissed for 60 days or an order
or decree approving or ordering any of the foregoing shall be
entered;
(i)
Holdings, the Parent Borrower or any Subsidiary shall (i) voluntarily
commence any proceeding or file any petition seeking liquidation, reorganization
or other relief under any Federal, state or foreign bankruptcy, insolvency,
receivership or similar law now or hereafter in effect, (ii) consent to the
institution of, or fail to contest in a timely and appropriate manner, any
proceeding or petition described in clause (h) of this Article, (iii) apply
for or consent to the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for Holdings, the Parent Borrower
or any Subsidiary or for a substantial part of its assets, (iv) file an
answer admitting the material allegations of a petition filed against it in
any
such proceeding, (v) make a general assignment for the benefit of creditors
or (vi) take any action for the purpose of effecting any of the
foregoing;
(j)
Holdings, the Parent Borrower or any Subsidiary shall become unable, admit
in
writing in a court proceeding its inability or fail generally to pay its debts
as they become due;
(k)
one
or more judgments for the payment of money in an aggregate amount in excess
of
$15,000,000 shall be rendered against Holdings, the Parent Borrower, any
Subsidiary or any combination thereof and the same shall remain undischarged
for
a period of 30 consecutive days during which execution shall not be
effectively stayed, or any action shall be legally taken by a judgment creditor
to attach or levy upon any assets of Holdings, the Parent Borrower or any
Subsidiary to enforce any such judgment;
(l)
an
ERISA Event shall have occurred that, in the opinion of the Required Lenders,
when taken together with all other ERISA Events that have
103
occurred,
could reasonably be expected to result in a Material Adverse Effect on Holdings,
the Parent Borrower and its Subsidiaries;
(m)
any
Lien covering property having a book value or fair market value of $1,000,000
or
more purported to be created under any Security Document shall cease to be,
or
shall be asserted by any Loan Party not to be, a valid and perfected Lien on
any
Collateral, except (i) as a result of the sale or other disposition of the
applicable Collateral in a transaction permitted under the Loan Documents or
(ii) as a result of the Administrative Agent's failure to maintain possession
of
any stock certificates, promissory notes or other instruments delivered to
it
under the Collateral Agreement;
(n)
the
Guarantee Agreement shall cease to be, or shall have been asserted not to be,
in
full force and effect;
(o)
the
Parent Borrower, Holdings or any Subsidiary shall challenge the subordination
provisions of the Subordinated Debt or assert that such provisions are invalid
or unenforceable or that the Obligations of the Parent Borrower or any Foreign
Subsidiary Borrower, or the Obligations of Holdings or any Subsidiary under
the
Guarantee Agreement, are not senior indebtedness under the subordination
provisions of the Subordinated Debt, or any court, tribunal or government
authority of competent jurisdiction shall judge the subordination provisions
of
the Subordinated Debt to be invalid or unenforceable or such Obligations to
be
not senior indebtedness under such subordination provisions or otherwise cease
to be, or shall be asserted not to be, legal, valid and binding obligations
of
the parties thereto, enforceable in accordance with their terms; or
(p)
a
Change in Control shall occur;
then,
and
in every such event (other than an event with respect to the Parent Borrower
described in clause (h) or (i) of this Article), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at
the
request of the Required Lenders shall, by notice to the Parent Borrower, take
either or both of the following actions, at the same or different
times: (i) terminate the Commitments, and thereupon the
Commitments shall terminate immediately, and (ii) declare the Loans then
outstanding to be due and payable in whole (or in part, in which case any
principal not so declared to be due and payable may thereafter be declared
to be
due and payable), and thereupon the principal of the Loans so declared to be
due
and payable, together with accrued interest thereon and all fees and other
obligations of the Parent Borrower or any Foreign Subsidiary Borrower accrued
hereunder, shall become due and payable immediately, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived
by
the Parent Borrower and the Foreign Subsidiary Borrowers; and in case of any
event with respect to the Parent Borrower or any Foreign Subsidiary Borrower
described in clause (h) or (i) of this Article, the Commitments shall
automatically terminate and the principal of the Loans then outstanding,
together with accrued interest thereon and all fees and other obligations of
the
Parent Borrower or any Foreign Subsidiary Borrower accrued hereunder, shall
automatically become due and
104
payable,
without presentment, demand, protest or other notice of any kind, all of which
are hereby waived by the Parent Borrower and the Foreign Subsidiary
Borrowers.
ARTICLE
VIII
The
Administrative Agent
Each
of
the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative
Agent (it being understood that reference in this Article VIII to the
Administrative Agent shall be deemed to include the Collateral Agent) as its
agent and authorizes the Administrative Agent to take such actions on its behalf
and to exercise such powers as are delegated to the Administrative Agent by
the
terms of the Loan Documents, together with such actions and powers as are
reasonably incidental thereto.
The
bank
serving as the Administrative Agent hereunder shall have the same rights and
powers in its capacity as a Lender as any other Lender and may exercise the
same
as though it were not the Administrative Agent, and such bank and its Affiliates
may accept deposits from, lend money to and generally engage in any kind of
business with Holdings, the Parent Borrower or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.
The
Administrative Agent shall not have any duties or obligations except those
expressly set forth in the Loan Documents. Without limiting the generality
of
the foregoing, (a) the Administrative Agent shall not be subject to any
fiduciary or other implied duties, regardless of whether a Default has occurred
and is continuing, (b) the Administrative Agent shall not have any duty to
take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated by the Loan Documents
that the Administrative Agent is required to exercise in writing by the Required
Lenders (or such other number or percentage of the Lenders as shall be necessary
under the circumstances as provided in Section 10.02), and (c) except
as expressly set forth in the Loan Documents, the Administrative Agent shall
not
have any duty to disclose, and shall not be liable for the failure to disclose,
any information relating to Holdings, the Parent Borrower or any of its
Subsidiaries that is communicated to or obtained by the bank serving as
Administrative Agent or any of its Affiliates in any capacity. The
Administrative Agent shall not be liable for any action taken or not taken
by it
with the consent or at the request of the Required Lenders (or such other number
or percentage of the Lenders as shall be necessary under the circumstances
as
provided in Section 10.02) or in the absence of its own gross negligence or
wilful misconduct. The Administrative Agent shall not be deemed not to have
knowledge of any Default unless and until written notice thereof is given to
the
Administrative Agent by Holdings, the Parent Borrower, a Foreign Subsidiary
Borrower or a Lender, and the Administrative Agent shall not be responsible
for
or have any duty to ascertain or inquire into (i) any statement, warranty
or representation made in or in connection with any Loan Document, (ii) the
contents of any certificate, report or other document delivered thereunder
or in
connection therewith, (iii) the performance or observance of any of the
covenants,
105
agreements
or other terms or conditions set forth in any Loan Document, (iv) the
validity, enforceability, effectiveness or genuineness of any Loan Document
or
any other agreement, instrument or document, or (v) the satisfaction of any
condition set forth in Article IV or elsewhere in any Loan Document, other
than to confirm receipt of items expressly required to be delivered to the
Administrative Agent.
The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed
by it to be made by the proper Person, and shall not incur any liability for
relying thereon. The Administrative Agent may consult with legal counsel (who
may be counsel for the Parent Borrower or any Foreign Subsidiary Borrower),
independent accountants and other experts selected by it, and shall not be
liable for any action taken or not taken by it in accordance with the advice
of
any such counsel, accountants or experts.
The
Administrative Agent may perform any and all its duties and exercise its rights
and powers by or through any one or more sub-agents appointed by the
Administrative Agent. The Administrative Agent and any such sub-agent may
perform any and all its duties and exercise its rights and powers through their
respective Related Parties. The exculpatory provisions of the preceding
paragraphs shall apply to any such sub-agent and to the Related Parties of
each
Administrative Agent and any such sub-agent, and shall apply to their respective
activities in connection with the syndication of the credit facilities provided
for herein as well as activities as Administrative Agent.
Subject
to the appointment and acceptance of a successor Administrative Agent as
provided in this paragraph, the Administrative Agent may resign at any time
by
notifying the Lenders, the Issuing Bank and the Parent Borrower (on behalf
of
itself and the Foreign Subsidiary Borrowers). Upon any such resignation, the
Required Lenders shall have the right, in consultation with the Parent Borrower
and, if applicable, the relevant Foreign Subsidiary Borrower, to appoint a
successor from among the Lenders. If no successor shall have been so appointed
by the Required Lenders and shall have accepted such appointment within
30 days after the retiring Administrative Agent gives notice of its
resignation, then the retiring Administrative Agent may, on behalf of the
Lenders and the Issuing Bank, appoint a successor Administrative Agent which
shall be a bank with an office in New York, New York, or an Affiliate
of any such bank. Upon the acceptance of its appointment as Administrative
Agent
hereunder by a successor, such successor shall succeed to and become vested
with
all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties
and obligations hereunder. The fees payable by the Parent Borrower (on behalf
of
itself and the Foreign Subsidiary Borrowers) to a successor Administrative
Agent
shall be the same as those payable to its predecessor unless otherwise agreed
between the Parent Borrower (on behalf of itself and the Foreign Subsidiary
Borrowers) and such successor. After the Administrative Agent's resignation
hereunder, the provisions of this Article and Section 10.03 shall continue
in effect for the benefit of such retiring Administrative Agent, its sub-agents
and their respective Related
106
Parties
in respect of any actions taken or omitted to be taken by any of them while
it
was acting as Administrative Agent.
Each
Lender acknowledges 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 credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges 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 from time
to time deem appropriate, continue to make its own decisions in taking or not
taking action under or based upon this Agreement, any other Loan Document or
related agreement or any document furnished hereunder or
thereunder.
The
Lenders identified in this Agreement as the Syndication Agent and the
Documentation Agents shall not have any right, power, obligation, liability,
responsibility or duty under this Agreement other than those applicable to
all
Lenders. Without limiting the foregoing, none of the Syndication Agent or the
Documentation Agents shall have or be deemed to have a fiduciary relationship
with any Lender. Each Lender hereby makes the same acknowledgments with respect
to the Syndication Agent and the Documentation Agents as it makes with respect
to the Administrative Agent or any other Lender in this Article
VIII.
ARTICLE
IX
Collection
Allocation Mechanism
SECTION
9.01. Implementation
of CAM. (a) On
the CAM Exchange Date, (i) the Commitments shall automatically and without
further act be terminated as provided in Article VII, (ii) all Foreign
Currency Borrowings and the Commitments to make Foreign Currency Loans shall
be
converted into, and all such amounts due thereunder shall accrue and be payable
in, dollars at the Exchange Rate on such date and (iii) the Lenders shall
automatically and without further act (and without regard to the provisions
of
Section 10.04) be deemed to have exchanged interests in the Credit
Facilities such that in lieu of the interest of each Lender in each Credit
Facility in which it shall participate as of such date (including such Lender's
interest in the Specified Obligations of each Loan Party in respect of each
such
Credit Facility), such Lender shall hold an interest in every one of the Credit
Facilities (including the Specified Obligations of each Loan Party in respect
of
each such Credit Facility and each LC Reserve Account established pursuant
to
Section 9.02 below), whether or not such Lender shall previously have
participated therein, equal to such Lender's CAM Percentage thereof. Each Lender
and each Loan Party hereby consents and agrees to the CAM Exchange, and each
Lender agrees that the CAM Exchange shall be binding upon its successors and
assigns and any person that acquires a participation in its interests in any
Credit Facility. Each Loan Party agrees from time to time to execute and deliver
to the Administrative Agent all promissory notes and other instruments and
documents as the Administrative Agent shall
107
reasonably
request to evidence and confirm the respective interests of the Lenders after
giving effect to the CAM Exchange, and each Lender agrees to surrender any
promissory notes originally received by it in connection with its Loans
hereunder to the Administrative Agent against delivery of new promissory notes
evidencing its interests in the Credit Facilities; provided,
however,
that
the failure of any Loan Party to execute or deliver or of any Lender to accept
any such promissory note, instrument or document shall not affect the validity
or effectiveness of the CAM Exchange.
(b) As
a
result of the CAM Exchange, upon and after the CAM Exchange Date, each payment
received by the Administrative Agent or the Collateral Agent pursuant to any
Loan Document in respect of the Specified Obligations, and each distribution
made by the Collateral Agent pursuant to any Security Documents in respect
of
the Specified Obligations, shall be distributed to the Lenders pro rata in
accordance with their respective CAM Percentages. Any direct payment received
by
a Lender upon or after the CAM Exchange Date, including by way of setoff, in
respect of a Specified Obligation shall be paid over to the Administrative
Agent
for distribution to the Lenders in accordance herewith.
SECTION
9.02. Letters
of Credit. (a) In
the event that on the CAM Exchange Date any Letter of Credit shall be
outstanding and undrawn in whole or in part, or any amount drawn under a Letter
of Credit shall not have been reimbursed either by the Parent Borrower or any
Foreign Subsidiary Borrower, as the case may be, or with the proceeds of a
Revolving Borrowing, each Revolving Lender shall promptly pay over to the
Administrative Agent, in immediately available funds and in the currency that
such Letters of Credit are denominated, an amount equal to such Revolving
Lender's Applicable Percentage (as notified to such Lender by the Administrative
Agent) of such Letter of Credit's undrawn face amount or (to the extent it
has
not already done so) such Letter of Credit's unreimbursed drawing, together
with
interest thereon from the CAM Exchange Date to the date on which such amount
shall be paid to the Administrative Agent at the rate that would be applicable
at the time to an ABR Revolving Loan in a principal amount equal to such amount,
as the case may be. The Administrative Agent shall establish a separate account
or accounts for each Lender (each, an "LC
Reserve Account")
for
the amounts received with respect to each such Letter of Credit pursuant to
the
preceding sentence. The Administrative Agent shall deposit in each Lender's
LC
Reserve Account such Lender's CAM Percentage of the amounts received from the
Revolving Lenders as provided above. The Administrative Agent shall have sole
dominion and control over each LC Reserve Account, and the amounts deposited
in
each LC Reserve Account shall be held in such LC Reserve Account until withdrawn
as provided in paragraph (b), (c), (d) or (e) below. The
Administrative Agent shall maintain records enabling it to determine the amounts
paid over to it and deposited in the LC Reserve Accounts in respect of each
Letter of Credit and the amounts on deposit in respect of each Letter of Credit
attributable to each Lender's CAM Percentage. The amounts held in each Lender's
LC Reserve Account shall be held as a reserve against the LC Exposure, shall
be
the property of such Lender, shall not constitute Loans to or give rise to
any
claim of or against any Loan Party and shall not give rise to any obligation
on
the part of the Parent Borrower or the Foreign Subsidiary Borrowers to pay
interest to such Lender, it being agreed that the reimbursement obligations
in
respect of Letters of
108
Credit
shall arise only at such times as drawings are made thereunder, as provided
in
Section 2.05.
(b) In
the
event that after the CAM Exchange Date any drawing shall be made in respect
of a
Letter of Credit, the Administrative Agent shall, at the request of the Issuing
Bank withdraw from the LC Reserve Account of each Lender any amounts, up to
the
amount of such Lender's CAM Percentage of such drawing, deposited in respect
of
such Letter of Credit and remaining on deposit and deliver such amounts to
the
Issuing Bank in satisfaction of the reimbursement obligations of the Revolving
Lenders under Section 2.05(e) (but not of the Parent Borrower and the
Foreign Subsidiary Borrowers under Section 2.05(f), respectively). In the event
any Revolving Lender shall default on its obligation to pay over any amount
to
the Administrative Agent in respect of any Letter of Credit as provided in
this
Section 9.02, the Issuing Bank shall, in the event of a drawing thereunder,
have a claim against such Revolving Lender to the same extent as if such Lender
had defaulted on its obligations under Section 2.05(e), but shall have no claim
against any other Lender in respect of such defaulted amount, notwithstanding
the exchange of interests in the reimbursement obligations pursuant to
Section 9.01. Each other Lender shall have a claim against such defaulting
Revolving Lender for any damages sustained by it as a result of such default,
including, in the event such Letter of Credit shall expire undrawn, its CAM
Percentage of the defaulted amount.
(c) In
the
event that after the CAM Exchange Date any Letter of Credit shall expire
undrawn, the Administrative Agent shall withdraw from the LC Reserve Account
of
each Lender the amount remaining on deposit therein in respect of such Letter
of
Credit and distribute such amount to such Lender.
(d) With
the
prior written approval of the Administrative Agent and the Issuing Bank, any
Lender may withdraw the amount held in its LC Reserve Account in respect of
the
undrawn amount of any Letter of Credit. Any Lender making such a withdrawal
shall be unconditionally obligated, in the event there shall subsequently be
a
drawing under such Letter of Credit, to pay over to the Administrative Agent,
for the account of the Issuing Bank on demand, its CAM Percentage of such
drawing.
(e) Pending
the withdrawal by any Lender of any amounts from its LC Reserve Account as
contemplated by the above paragraphs, the Administrative Agent will, at the
direction of such Lender and subject to such rules as the Administrative Agent
may prescribe for the avoidance of inconvenience, invest such amounts in
Permitted Investments. Each Lender that has not withdrawn its CAM Percentage
of
amounts in its LC Reserve Account as provided in paragraph (d) above shall
have the right, at intervals reasonably specified by the Administrative Agent,
to withdraw the earnings on investments so made by the Administrative Agent
with
amounts in its LC Reserve Account and to retain such earnings for its own
account.
109
ARTICLE
X
Miscellaneous
SECTION
10.01. Notices.
Except
in the case of notices and other communications expressly permitted to be given
by telephone, all notices and other communications provided for herein shall
be
in writing and shall be delivered by hand or overnight courier service, mailed
by certified or registered mail or sent by telecopy, as follows:
(a)
if to
Holdings, the Parent Borrower or any Foreign Subsidiary Borrower, to the Parent
Borrower (on behalf of itself, Holdings and any Foreign Subsidiary Borrower)
at
Metaldyne Corporation, 00000 Xxx Xxxx Xxxx, Xxxxxx, Xxxxxxxx 00000, Attention
of
Xxxxx Liner, Esq. (Telecopy No. (000) 000-0000),
with
a
copy to
Xxxxxxxx
X. Xxxxxxxxx, Esq.
Xxxxxx
Xxxxxx & Xxxxxxx
00
Xxxx
Xxxxxx
Xxx
Xxxx,
Xxx Xxxx
(Telecopy
No. (000) 000-0000);
(b)
if to
the Administrative Agent, to JPMorgan Chase Bank, N.A., Loan and Agency Services
Group, 0000 Xxxxxx Xxxxxx, 00xx Xxxxx, Xxxxxxx, Xxxxx 00000, Attention of
Xxxxx Xxxxxx (Telecopy No. (000) 000-0000), with a copy to JPMorgan Chase
Bank, 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention of
Xxxxxxx Xxxxx (Telecopy No. 212-270-5127);
(c)
if to
the Issuing Bank, to it at 10420 Highland Mn Dr-BL2, Xxxxx, Xxxxxxx 00000,
Attention of Xxxxx Xxxxxx (Telecopy No. (000) 000-0000), and in the
event that there is more than one Issuing Bank, to such other Issuing Bank
at
its address (or telecopy number) set forth in its Administrative
Questionnaire;
(d)
if to
the Swingline Lender, to it at 0000 Xxxxxx Xxxxxx, 00xx Xxxxx, Xxxxxxx,
Xxxxx 00000, Attention of Xxxxx Xxxxxx (Telecopy No. (000) 000-0000);
and
(e)
if to
any other Lender, to it at its address (or telecopy number) set forth in its
Administrative Questionnaire.
Any
party
hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices
and
other communications given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of
receipt.
SECTION
10.02. Waivers;
Amendments.
(a) No failure or delay by the Administrative Agent, the Issuing Bank
or any Lender in exercising any right or
110
power
hereunder or under any other Loan Document shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Administrative Agent, the Issuing
Bank and the Lenders hereunder and under the other Loan Documents are cumulative
and are not exclusive of any rights or remedies that they would otherwise have.
No waiver of any provision of any Loan Document or consent to any departure
by
any Loan Party therefrom shall in any event be effective unless the same shall
be permitted by paragraph (b) of this Section, and then such waiver or
consent shall be effective only in the specific instance and for the purpose
for
which given. Without limiting the generality of the foregoing, the making of
a
Loan or issuance of a Letter of Credit shall not be construed as a waiver of
any
Default, regardless of whether the Administrative Agent, any Lender or the
Issuing Bank may have had notice or knowledge of such Default at the
time.
(b) Neither
this Agreement nor any other Loan Document nor any provision hereof or thereof
may be waived, amended or modified except, in the case of this Agreement,
pursuant to an agreement or agreements in writing entered into by Holdings,
the
Parent Borrower, each Foreign Subsidiary Borrower (but only to the extent such
waiver, amendment or modification relates to such Foreign Subsidiary Borrower)
and the Required Lenders or, in the case of any other Loan Document, pursuant
to
an agreement or agreements in writing entered into by the Administrative Agent
and the Loan Party or Loan Parties that are parties thereto, in each case with
the consent of the Required Lenders; provided
that no
such agreement shall (i) increase the Commitment of any Lender without the
written consent of such Lender, (ii) reduce the principal amount of any Loan
or
LC Disbursement or reduce the rate of interest thereon, or reduce any fees
payable hereunder, without the written consent of each Lender affected thereby,
(iii) postpone the maturity of any Loan, or any scheduled date of payment of
the
principal amount of any Term Loan under Section 2.10, or the required date
of
reimbursement of any LC Disbursement, or any date for the payment of any
interest or fees payable hereunder, or reduce the amount of, waive or excuse
any
such payment, or postpone the scheduled date of expiration of any Commitment
or
postpone the scheduled date of expiration of any Letter of Credit beyond the
Revolving Maturity Date, without the written consent of each Lender affected
thereby, (iv) change Section 2.18(b) or (c) in a manner that would
alter the pro rata sharing of payments required thereby, without the
written consent of each Lender, (v) change the percentage set forth in the
definition of "Required Lenders" or any other provision of any Loan Document
(including this Section) specifying the number or percentage of Lenders (or
Lenders of any Class) required to waive, amend or modify any rights thereunder
or make any determination or grant any consent thereunder, without the written
consent of each Lender (or each Lender of such Class, as the case may be),
(vi)
release Holdings or any Subsidiary Loan Party from its Guarantee under the
Guarantee Agreement (except as expressly provided in the Guarantee Agreement),
or limit its liability in respect of such Guarantee, without the written consent
of each Lender, (vii) release all or substantially all of the Collateral from
the Liens of the Security Documents, without the written consent of each Lender
or (viii) change any provisions of any Loan Document in a manner that by its
terms adversely affects the rights in respect of payments due to Lenders holding
Loans of any Class
111
differently
than those holding Loans of any other Class, without the written consent of
Lenders holding a majority in interest of the outstanding Loans and unused
Commitments of each affected Class; provided further
that
(A) no such agreement shall amend, modify or otherwise affect the rights or
duties of the Administrative Agent, the Issuing Bank or the Swingline Lender
without the prior written consent of the Administrative Agent, the Issuing
Bank
or the Swingline Lender, as the case may be, and (B) any waiver, amendment
or modification of this Agreement that by its terms affects the rights or duties
under this Agreement of the Revolving Lenders (but not the Tranche D Lenders)
or
the Tranche D Lenders (but not the Revolving Lenders), may be effected by an
agreement or agreements in writing entered into by Holdings, the Parent
Borrower, each Foreign Subsidiary Parent Borrower (but only to the extent such
waiver, amendment or modification relates to such Foreign Subsidiary Borrower)
and requisite percentage in interest of the affected Class of Lenders that
would
be required to consent thereto under this Section if such Class of Lenders
were
the only Class of Lenders hereunder at the time. Notwithstanding the foregoing,
any provision of this Agreement may be amended by an agreement in writing
entered into by Holdings, the Parent Borrower, each Foreign Subsidiary Borrower
(but only to the extent such waiver, amendment or modification relates to such
Foreign Subsidiary Borrower), the Required Lenders and the Administrative Agent
(and, if their rights or obligations are affected thereby, the Issuing Bank
and
the Swingline Lender) if (i) by the terms of such agreement the Commitment
of
each Lender not consenting to the amendment provided for therein shall terminate
upon the effectiveness of such amendment and (ii) at the time such amendment
becomes effective, each Lender not consenting thereto receives payment in full
of the principal of and interest accrued on each Loan made by it and all other
amounts owing to it or accrued for its account under this
Agreement.
SECTION
10.03. Expenses;
Indemnity; Damage Waiver.
(a)
Holdings, the Parent Borrower and each Foreign Subsidiary Borrower,
jointly and severally, shall pay (i) all reasonable out-of-pocket expenses
incurred by the Administrative Agent and its Affiliates, including the
reasonable fees, charges and disbursements of one counsel in each applicable
jurisdiction for the Administrative Agent, in connection with the syndication
of
the credit facilities provided for herein, due diligence investigation, the
preparation and administration of the Loan Documents or any amendments,
modifications or waivers of the provisions thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), (ii) all
reasonable out-of-pocket expenses incurred by the Issuing Bank in connection
with the issuance, amendment, renewal or extension of any Letter of Credit
or
any demand for payment thereunder and (iii) all out-of-pocket expenses incurred
by the Administrative Agent, the Issuing Bank or any Lender, including the
fees,
charges and disbursements of any counsel for the Administrative Agent, the
Issuing Bank or any Lender, in connection with the enforcement or protection
of
its rights in connection with the Loan Documents, including its rights under
this Section, or in connection with the Loans made or Letters of Credit issued
hereunder, including all such out-of-pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Loans or Letters
of
Credit.
(b) Holdings,
the Parent Borrower and each Foreign Subsidiary Borrower, jointly and severally,
shall indemnify the Administrative Agent, the Issuing
112
Bank
and
each Lender, and each Related Party of any of the foregoing Persons (each such
Person being called an "Indemnitee")
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including the fees, charges and
disbursements of any counsel for any Indemnitee, incurred by or asserted against
any Indemnitee arising out of, in connection with, or as a result of
(i) the execution or delivery of any Loan Document or any other agreement
or instrument contemplated hereby, the performance by the parties to the Loan
Documents of their respective obligations thereunder or the consummation of
the
Transactions or any other transactions contemplated hereby, (ii) any Loan
or Letter of Credit or the use of the proceeds therefrom (including any refusal
by the Issuing Bank to honor a demand for payment under a Letter of Credit
if
the documents presented in connection with such demand do not strictly comply
with the terms of such Letter of Credit), (iii) any actual or alleged
presence or release of Hazardous Materials on or from any Mortgaged Property
or
any other property currently or formerly owned or operated by the Parent
Borrower or any of its Subsidiaries, or any Environmental Liability related
in
any way to the Parent Borrower or any of its Subsidiaries, or (iv) any actual
or
prospective claim, litigation, investigation or proceeding relating to any
of
the foregoing, whether based on contract, tort or any other theory and
regardless of whether any Indemnitee is a party thereto; provided
that
such indemnity shall not, as to any Indemnitee, be available to the extent
that
such losses, claims, damages, liabilities or related expenses are determined
by
a court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or wilful misconduct of such
Indemnitee.
(c) To
the
extent that Holdings, the Parent Borrower and the Foreign Subsidiary Borrowers
fail to pay any amount required to be paid by it to the Administrative Agent,
the Issuing Bank or the Swingline Lender under paragraph (a) or (b) of
this Section, each Lender severally agrees to pay to the Administrative Agent,
the Issuing Bank or the Swingline Lender, as the case may be, such Lender's
pro
rata share (determined as of the time that the applicable unreimbursed expense
or indemnity payment is sought) of such unpaid amount; provided
that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the
Administrative Agent, the Issuing Bank or the Swingline Lender in its capacity
as such. For purposes hereof, a Lender's "pro rata share" shall be determined
based upon its share of the sum of the total Revolving Exposures, outstanding
Term Loans and unused Commitments at the time.
(d) To
the
extent permitted by applicable law, none of Holdings, the Parent Borrower or
any
Foreign Subsidiary Borrower shall assert, and each hereby waives, any claim
against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement or any
agreement or instrument contemplated hereby, the Transactions, any Loan or
Letter of Credit or the use of the proceeds thereof.
(e) All
amounts due under this Section shall be payable promptly after written demand
therefor.
113
(f) Neither
Heartland nor any director, officer, employee, stockholder or member, as such,
of any Loan Party or Heartland shall have any liability for the Obligations
or
for any claim based on, in respect of or by reason of the Obligations or their
creation; provided
that the
foregoing shall not be construed to relieve any Loan Party of its Obligations
under any Loan Document.
SECTION
10.04. Successors
and Assigns.
(a) The provisions of this Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and assigns
permitted hereby (including any Affiliate of the Issuing Bank that issues any
Letter of Credit), except that none of Holdings, the Parent Borrower or any
Foreign Subsidiary Borrower may assign or otherwise transfer any of its rights
or obligations hereunder without the prior written consent of each Lender (and
any attempted assignment or transfer by the Parent Borrower or any Foreign
Subsidiary Borrower without such consent shall be null and void). Nothing in
this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns
permitted hereby (including any Affiliate of the Issuing Bank that issues any
Letter of Credit) and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent, the Issuing Bank and the Lenders)
any legal or equitable right, remedy or claim under or by reason of this
Agreement.
(b) Any
Lender may assign to one or more assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment
and the Loans at the time owing to it); provided
that
(i) except in the case of an assignment to a Lender or a Lender Affiliate,
each of the Parent Borrower, each Foreign Subsidiary Borrower (but only to
the
extent such assignment relates to Foreign Currency Commitments or Foreign
Currency Loans relating to such Foreign Subsidiary Borrower) and the
Administrative Agent (and, in the case of an assignment of all or a portion
of a
Revolving Commitment or any Lender's obligations in respect of its LC Exposure
or Swingline Exposure, the Issuing Bank and the Swingline Lender) must give
their prior written consent to such assignment (which consent shall not be
unreasonably withheld or delayed), (ii) except in the case of an assignment
to a
Lender or a Lender Affiliate or an assignment of the entire remaining amount
of
the assigning Lender's Commitment or Loans, the amount of the Commitment or
Loans of the assigning Lender subject to each such assignment (determined as
of
the date the Assignment and Acceptance with respect to such assignment is
delivered to the Administrative Agent) shall not be less than (x) in the
case of Revolving Commitments and Revolving Loans, $5,000,000, and (y) in
the case of Tranche D Commitments and Tranche D Loans, $1,000,000
unless each of the Parent Borrower, each Foreign Subsidiary Borrower (but only
to the extent such assignment relates to Foreign Currency Commitments or Foreign
Currency Loans relating to such Foreign Subsidiary Borrower) and the
Administrative Agent otherwise consent, (iii) each partial assignment shall
be
made as an assignment of a proportionate part of all the assigning Lender's
rights and obligations under this Agreement, except that this clause (iii)
shall
not be construed to prohibit the assignment of a proportionate part of all
the
assigning Lender's rights and obligations in respect of one Class of Commitments
or Loans, (iv) notwithstanding anything to the contrary, assignments by any
Revolving Lender of any portion of its Revolving Commitments or
114
any
portion of Revolving Loans must include a ratable portion of its Foreign
Currency Commitments and ratable portion of its Foreign Currency Loans and
visa
versa, (v) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Acceptance, together with a processing
and recordation fee of $3,500, and (vi) the assignee, if it shall not be a
Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire; and provided further
that any
consent of the Parent Borrower or any Foreign Subsidiary Borrower otherwise
required under this paragraph shall not be required if an Event of Default
under
Article VII has occurred and is continuing. Subject to acceptance and recording
thereof pursuant to paragraph (d) of this Section, from and after the
effective date specified in each Assignment and Acceptance the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned
by such Assignment and Acceptance, have the rights and obligations of a Lender
under this Agreement (provided
that any
liability of the Parent Borrower or any Foreign Subsidiary Borrower to such
assignee under Section 2.15, 2.16 or 2.17 shall be limited to the amount, if
any, that would have been payable thereunder by the Parent Borrower or any
Foreign Subsidiary Borrower in the absence of such assignment), and the
assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Acceptance, be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all of
the
assigning Lender's rights and obligations under this Agreement, such Lender
shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.15, 2.16, 2.17 and 10.03). Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does
not
comply with this paragraph shall be treated for purposes of this Agreement
as a
sale by such Lender of a participation in such rights and obligations in
accordance with paragraph (e) of this Section.
(c) The
Administrative Agent, acting for this purpose as an agent of the Parent Borrower
and the Foreign Subsidiary Borrowers, shall maintain at one of its offices
in
The City of New York a copy of each Assignment and Acceptance delivered to
it and a register for the recordation of the names and addresses of the Lenders,
and the Commitment of, and principal amount of the Loans and LC Disbursements
owing to, each Lender pursuant to the terms hereof from time to time (the
"Register").
The
entries in the Register shall be conclusive, and Holdings, the Parent Borrower,
the Foreign Subsidiary Borrowers, the Administrative Agent, the Issuing Bank
and
the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Parent Borrower, the Foreign Subsidiary
Borrowers, the Issuing Bank and any Lender, at any reasonable time and from
time
to time upon reasonable prior notice.
(d) Upon
its
receipt of a duly completed Assignment and Acceptance executed by an assigning
Lender and an assignee, the assignee's completed Administrative Questionnaire
(unless the assignee shall already be a Lender hereunder), the processing and
recordation fee referred to in paragraph (b) of this Section and any
written consent to such assignment required by paragraph (b) of this
Section, the Administrative Agent shall accept such Assignment and Acceptance
and record the information contained therein in the Register. No assignment
shall be effective for
115
purposes
of this Agreement unless it has been recorded in the Register as provided in
this paragraph.
(e) Any
Lender may, without the consent of the Parent Borrower or any Foreign Subsidiary
Borrower, the Administrative Agent, the Issuing Bank or the Swingline Lender,
sell participations to one or more banks or other entities (a "Participant")
in all
or a portion of such Lender's rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans owing to it);
provided
that
(i) such Lender's obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations and (iii) Holdings, the
Parent Borrower, the Foreign Subsidiary Borrowers, the Administrative Agent,
the
Issuing Bank and the other Lenders shall continue to deal solely and directly
with such Lender in connection with such Lender's rights and obligations under
this Agreement. Any agreement or instrument pursuant to which a Lender sells
such a participation shall provide that such Lender shall retain the sole right
to enforce the Loan Documents and to approve any amendment, modification or
waiver of any provision of the Loan Documents; provided
that
such agreement or instrument may provide that such Lender will not, without
the
consent of the Participant, agree to any amendment, modification or waiver
described in the first proviso to Section 10.02(b) that affects such
Participant. Subject to paragraph (f) of this Section, the Parent Borrower
and
the Foreign Subsidiary Borrowers agree that each Participant shall be entitled
to the benefits of Sections 2.15, 2.16 and 2.17 to the same extent as if it
were
a Lender and had acquired its interest by assignment pursuant to
paragraph (b) of this Section. To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 10.08 as
though it were a Lender, provided such Participant agrees to be subject to
Section 2.18(c) as though it were a Lender.
(f) A
Participant shall not be entitled to receive any greater payment under Section
2.15 or 2.17 than the applicable Lender would have been entitled to receive
with
respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the prior written consent of
the
Parent Borrower and, to the extent applicable, each relevant Foreign Subsidiary
Borrower. A Participant that would be a Foreign Lender if it were a Lender
shall
not be entitled to the benefits of Section 2.17 unless the Parent Borrower
and, to the extent applicable, each relevant Foreign Subsidiary Borrower is
notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Parent Borrower and, to the extent applicable,
each relevant Foreign Subsidiary Borrower, to comply with Section 2.17(e) as
though it were a Lender.
(g) Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank, and this Section shall not apply to any such pledge or assignment of
a
security interest; 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.
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SECTION
10.05. Survival.
All
covenants, agreements, representations and warranties made by the Loan Parties
in the Loan Documents and in the certificates or other instruments delivered
in
connection with or pursuant to this Agreement or any other Loan Document shall
be considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of the Loan Documents and the making of
any
Loans and issuance of any Letters of Credit, regardless of any investigation
made by any such other party or on its behalf and notwithstanding that the
Administrative Agent, the Issuing Bank or any Lender may have had notice or
knowledge of any Default or incorrect representation or warranty at the time
any
credit is extended hereunder, and shall continue in full force and effect as
long as the principal of or any accrued interest on any Loan or any fee or
any
other amount payable under this Agreement is outstanding and unpaid or any
Letter of Credit is outstanding and so long as the Commitments have not expired
or terminated. The provisions of Sections 2.15, 2.16, 2.17 and 10.03 and Article
VIII shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the
Loans, the expiration or termination of the Letters of Credit and the
Commitments or the termination of this Agreement or any provision
hereof.
SECTION
10.06. Counterparts;
Integration; Effectiveness.
This
Agreement may be executed in counterparts (and by different parties hereto
on
different counterparts), each of which shall constitute an original, but all
of
which when taken together shall constitute a single contract. This Agreement,
the other Loan Documents and any separate letter agreements with respect to
fees
payable to the Administrative Agent constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof. Except as provided in Section 4.01, this Agreement shall become
effective when it shall have been executed by the Administrative Agent and
when
the Administrative Agent shall have received counterparts hereof which, when
taken together, bear the signatures of each of the other parties hereto, and
thereafter shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. Delivery of an executed counterpart
of a signature page of this Agreement by telecopy shall be effective as delivery
of a manually executed counterpart of this Agreement.
SECTION
10.07. Severability.
Any
provision of this Agreement held to be invalid, illegal or unenforceable in
any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity,
legality and enforceability of the remaining provisions hereof; and the
invalidity of a particular provision in a particular jurisdiction shall not
invalidate such provision in any other jurisdiction.
SECTION
10.08. Right
of Setoff.
If an
Event of Default shall have occurred and be continuing, each Lender and each
of
its Affiliates is hereby authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held
and
other obligations at any time owing by such Lender or Affiliate to or for the
credit or the account of the Parent Borrower or any Foreign Subsidiary Borrower
against
117
any
of
and all the obligations of the Parent Borrower or any Foreign Subsidiary
Borrower now or hereafter existing under this Agreement held by such Lender,
irrespective of whether or not such Lender shall have made any demand under
this
Agreement and although such obligations may be unmatured. The rights of each
Lender under this Section are in addition to other rights and remedies
(including other rights of setoff) which such Lender may have.
SECTION
10.09. Governing
Law; Jurisdiction; Consent to Service of Process.
(a) This Agreement shall be construed in accordance with and governed
by the law of the State of New York.
(b) Each
of
Holdings, the Parent Borrower and each Foreign Subsidiary Borrower hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of
the Southern District of New York, and any appellate court from any
thereof, in any action or proceeding arising out of or relating to any Loan
Document, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims
in
respect of any such action or proceeding may be heard and determined in such
New York State or, to the extent permitted by law, in such Federal court.
Each of the parties hereto agrees that a final judgment in any such action
or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. Nothing in this
Agreement or any other Loan Document shall affect any right that the
Administrative Agent, the Issuing Bank or any Lender may otherwise have to
bring
any action or proceeding relating to this Agreement or any other Loan Document
against Holdings, the Parent Borrower, any of the Foreign Subsidiary Borrowers
or their properties in the courts of any jurisdiction.
(c) Each
of
Holdings, the Parent Borrower and each Foreign Subsidiary Borrower hereby
irrevocably and unconditionally waives, to the fullest extent it may legally
and
effectively do so, any objection which it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating
to
this Agreement or any other Loan Document in any court referred to in
paragraph (b) of this Section. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of
an
inconvenient forum to the maintenance of such action or proceeding in any such
court.
(d) Each
party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 10.01. Nothing in this Agreement or any
other Loan Document will affect the right of any party to this Agreement to
serve process in any other manner permitted by law.
SECTION
10.10. WAIVER
OF JURY TRIAL.
EACH
PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT
OR THE
118
TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.
SECTION
10.11. Headings.
Article
and Section headings and the Table of Contents used herein are for convenience
of reference only, are not part of this Agreement and shall not affect the
construction of, or be taken into consideration in interpreting, this
Agreement.
SECTION
10.12. Confidentiality.
Each of
the Administrative Agent, the Issuing Bank and the Lenders agrees to maintain
the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its and its Lender Affiliates'
directors, officers, employees and agents, including accountants, legal counsel
and other advisors (it being understood that the Persons to whom such disclosure
is made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential pursuant to the terms hereof),
(b) to the extent requested by any regulatory authority, (c) to the
extent required by applicable laws or regulations or by any subpoena or similar
legal process, (d) to any other party to this Agreement, (e) in
connection with the exercise of any remedies hereunder or any suit, action
or
proceeding relating to this Agreement or any other Loan Document or the
enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section, to
(i) any assignee of or Participant in, or any prospective assignee of or
Participant in, any of its rights or obligations under this Agreement,
(ii) any actual or prospective counterparty (or its advisors) to any swap
or derivative transaction relating to the Parent Borrower, any Foreign
Subsidiary Borrower and their respective obligations or (iii) any direct or
indirect contractual counterparty (or its advisors) to any swap transaction
relating to a Lender's obligations hereunder, (g) with the consent of the
Parent Borrower or (h) to the extent such Information (i) is publicly
available at the time of disclosure or becomes publicly available other than
as
a result of a breach of this Section or (ii) becomes available to the
Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis
from a source other than Holdings, the Parent Borrower or any Subsidiary
(including the Receivables Subsidiary and the Saturn Subsidiary). For the
purposes of this Section, "Information"
means
all information received from Holdings, the Parent Borrower or any Subsidiary
(including the Receivables Subsidiary and the Saturn Subsidiary) relating to
Holdings, the Parent Borrower or any Subsidiary (including the Receivables
Subsidiary and the Saturn Subsidiary) or its business, other than any such
information that is available to the Administrative Agent, the Issuing Bank
or
any Lender on a nonconfidential basis prior to disclosure by Holdings, the
Parent Borrower or any Subsidiary (including the Receivables Subsidiary and
the
Saturn Subsidiary); provided
that, in
the case of information received from Holdings, the Parent Borrower or any
119
Subsidiary
(including the Receivables Subsidiary and the Saturn Subsidiary) after the
date
hereof, such information is clearly identified at the time of delivery as
confidential. Any Person required to maintain the confidentiality of Information
as provided in this Section shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord
to
its own confidential information.
SECTION
10.13. Interest
Rate Limitation.
Notwithstanding anything herein to the contrary, if at any time the interest
rate applicable to any Loan, together with all fees, charges and other amounts
which are treated as interest on such Loan under applicable law (collectively
the "Charges"),
shall
exceed the maximum lawful rate (the "Maximum
Rate")
which
may be contracted for, charged, taken, received or reserved by the Lender
holding such Loan in accordance with applicable law, the rate of interest
payable in respect of such Loan hereunder, together with all Charges payable
in
respect thereof, shall be limited to the Maximum Rate and, to the extent lawful,
the interest and Charges that would have been payable in respect of such Loan
but were not payable as a result of the operation of this Section shall be
cumulated and the interest and Charges payable to such Lender in respect of
other Loans or periods shall be increased (but not above the Maximum Rate
therefor) until such cumulated amount, together with interest thereon at the
Federal Funds Effective Rate to the date of repayment, shall have been received
by such Lender.
SECTION
10.14. Judgment
Currency.
(a) The obligations hereunder of the Parent Borrower and the Foreign
Subsidiary Borrowers and under the other Loan Documents to make payments in
Dollars or in the Foreign Currencies, as the case may be, (the "Obligation
Currency")
shall
not be discharged or satisfied by any tender or recovery pursuant to any
judgment expressed in or converted into any currency other than the Obligation
Currency, except to the extent that such tender or recovery results in the
effective receipt by the Administrative Agent, the Collateral Agent or a Lender
of the full amount of the Obligation Currency expressed to be payable to the
Administrative Agent, Collateral Agent or Lender under this Agreement or the
other Loan Documents. If, for the purpose of obtaining or enforcing judgment
against the Parent Borrower, any Foreign Subsidiary Borrower or any other Loan
Party in any court or in any jurisdiction, it becomes necessary to convert
into
or from any currency other than the Obligation Currency (such other currency
being hereinafter referred to as the "Judgment
Currency")
an
amount due in the Obligation Currency, the conversion shall be made, at the
Dollar Equivalent of such amount, in each case, as of the date immediately
preceding the day on which the judgment is given (such Business Day being
hereinafter referred to as the "Judgment
Currency Conversion Date").
(b) If
there
is a change in the rate of exchange prevailing between the Judgment Currency
Conversion Date and the date of actual payment of the amount due, the Parent
Borrower and each Foreign Subsidiary Borrower, as the case may be, covenants
and
agrees to pay, or cause to be paid, such additional amounts, if any (but in
any
event not a lesser amount), as may be necessary to ensure that the amount paid
in the Judgment Currency, when converted at the rate of exchange prevailing
on
the date of payment, will produce the amount of the Obligation Currency which
could have been
120
purchased
with the amount of Judgment Currency stipulated in the judgment or judicial
award at the rate of exchange prevailing on the Judgment Currency Conversion
Date.
(c) For
purposes of determining the Dollar Equivalent, such amounts shall include any
premium and costs payable in connection with the purchase of the Obligation
Currency.
SECTION
10.15. Effectiveness
of the Amendment and Restatement; Original Credit Agreement.
This
Agreement shall become effective on the Restatement Effective Date, and
thereafter shall be binding upon and inure to the benefit of the parties hereto
and the parties to the Original Credit Agreement and their respective successors
and assigns. Until this Agreement becomes effective, the Original Credit
Agreement shall remain in full force and effect and shall not be affected
hereby. After the Restatement Effective Date, all obligations of Holdings,
the
Parent Borrower and the Foreign Subsidiary Borrowers under the Original Credit
Agreement shall become obligations of Holdings, the Parent Borrower and the
Foreign Subsidiary Borrowers hereunder, secured by the Liens granted under
the
Security Documents, and the provisions of the Original Credit Agreement shall
be
superseded by the provisions hereof. Except as otherwise expressly stated
hereunder, the term of this Agreement is for all purposes deemed to have
commenced on the Restatement Effective Date.