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Exhibit 4(ii)
CREDIT AGREEMENT
by and among
AMERICAN GREETINGS CORPORATION,
as US Facility Borrower,
CARLTON CARDS (FRANCE) S.N.C., CARLTON CARDS
LIMITED, UK GREETINGS LIMITED, XXXXXX WHITE GROUP
LIMITED and CAMDEN GRAPHICS LIMITED,
as UK Facility Borrowers,
CARLTON CARDS LIMITED,
as Canadian Facility Borrower,
XXXX XXXXX (AUSTRALIA) LTD., XXXX
XXXXX (N.Z.) LTD. and XXXX XXXXX
HOLDING CORPORATION,
as Australian Facility Borrowers,
NATIONSBANK, NATIONAL ASSOCIATION,
as Global Agent, Documentation Agent,
UK Facility Agent and as Lender,
NATIONAL CITY BANK,
as Co-Agent, US Facility Agent and as Lender,
BANK OF AMERICA NATIONAL TRUST and SAVINGS ASSOCIATION,
as Co-Agent and Australian Facility
Agent,
BANK OF AMERICA CANADA,
as Canadian Facility Agent and as Lender
and
THE LENDERS PARTY HERETO FROM TIME TO TIME
August 7, 1998
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TABLE OF CONTENTS
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ARTICLE I
Definitions and Terms
1.01 Definitions...........................................................................................4
1.02 Rules of Interpretation..............................................................................42
ARTICLE II
The US Facility
2.01 Advances.............................................................................................43
2.02 Payment of Interest..................................................................................45
2.03 Payment of Principal.................................................................................45
2.04 Manner of Payment....................................................................................46
2.05 US Facility Notes....................................................................................46
2.06 Pro Rata Payments....................................................................................46
2.07 Reductions...........................................................................................47
2.08 Conversions and Elections of Subsequent Interest Periods.............................................47
2.09 Facility Fee.........................................................................................48
2.10 Deficiency Advances..................................................................................48
2.11 Use of Proceeds......................................................................................48
2.12 US Facility Extension................................................................................49
2.13 US Term Loan Option..................................................................................49
2.14 Participations.......................................................................................50
ARTICLE III
The UK Facility
3.01 Advances.............................................................................................51
3.02 Payment of Interest..................................................................................54
3.03 Payment of Principal.................................................................................54
3.04 Manner of Payment....................................................................................54
3.05 Evidence of Indebtedness.............................................................................55
3.06 Pro Rata Payments....................................................................................56
3.07 Reductions...........................................................................................56
3.08 Conversions and Elections of Subsequent Interest Periods.............................................56
3.09 Facility Fee.........................................................................................57
3.10 Deficiency Advances..................................................................................57
3.11 Use of Proceeds......................................................................................57
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3.12 One Loan.............................................................................................58
3.13 Participations.......................................................................................58
ARTICLE IV
The Canadian Facility
4.01 Advances.............................................................................................60
4.02 Payment of Interest..................................................................................62
4.03 Payment of Principal.................................................................................63
4.04 Manner of Payment....................................................................................64
4.05 Evidence of Indebtedness.............................................................................65
4.06 Pro Rata Payments....................................................................................65
4.07 Reductions...........................................................................................65
4.08 Conversions and Elections of Subsequent Interest Periods.............................................66
4.09 Facility Fee.........................................................................................66
4.10 Deficiency Advances..................................................................................67
4.11 Use of Proceeds......................................................................................67
4.12 Canadian Facility Extension..........................................................................67
4.13 Canadian Term Loan Option............................................................................68
4.14 Participations.......................................................................................69
4.15 Maximum Rate of Return...............................................................................69
ARTICLE V
The Australian Facility
5.01 Advances.............................................................................................70
5.02 Payment of Interest..................................................................................73
5.03 Payment of Principal.................................................................................73
5.04 Manner of Payment....................................................................................73
5.05 Evidence of Indebtedness.............................................................................74
5.06 Pro Rata Payments....................................................................................74
5.07 Reductions...........................................................................................75
5.08 Conversions and Elections of Subsequent Interest Periods.............................................75
5.09 Facility Fee.........................................................................................76
5.10 Deficiency Advances..................................................................................76
5.11 Use of Proceeds......................................................................................77
5.12 One Loan.............................................................................................77
5.13 Participations.......................................................................................78
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ARTICLE VI
Changes in Circumstances
6.01 Increased Cost and Reduced Return....................................................................79
6.02. Limitation on Types of Loans.........................................................................80
6.03. Illegality...........................................................................................81
6.04. Treatment of Affected Loans..........................................................................81
6.05. Compensation.........................................................................................82
6.06 Taxes................................................................................................82
6.07 Replacement Lender...................................................................................85
6.08 Funding..............................................................................................85
6.09 Economic and Monetary Union in the European Community................................................85
ARTICLE VII
Conditions to Making Loans
7.01 Conditions of Initial Advance........................................................................87
7.02 Conditions of Loans..................................................................................89
ARTICLE VIII
Representations and Warranties
8.01 Representations and Warranties as to Borrowers and Subsidiaries......................................91
8.02 Representations and Warranties of the Company........................................................92
ARTICLE IX
Affirmative Covenants
9.01 Financial Reports, Etc...............................................................................97
9.02 Maintain Properties..................................................................................98
9.03 Existence, Qualification, Etc........................................................................98
9.04 Regulations and Taxes................................................................................98
9.05 Insurance............................................................................................98
9.06 True Books...........................................................................................98
9.07 Right of Inspection..................................................................................99
9.08 Observe all Laws.....................................................................................99
9.09 Covenants Extending to Subsidiaries..................................................................99
9.10 Officer's Knowledge of Default.......................................................................99
9.11 Suits or Other Proceedings...........................................................................99
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9.12 Environmental Compliance.............................................................................99
9.13 Further Assurances..................................................................................100
9.14 Continued Operations................................................................................100
9.15 Use of Proceeds.....................................................................................100
9.16 Year 2000 Compliance................................................................................100
ARTICLE X
Negative Covenants
10.01 Consolidated Funded Indebtedness to Consolidated Total Capitalization...............................102
10.02 Consolidated EBIT to Consolidated Interest Expense. ...............................................102
10.03 Liens...............................................................................................102
10.04 Transfer of Assets..................................................................................103
10.05 Merger or Consolidation.............................................................................103
10.06 Transactions with Affiliates........................................................................104
10.07 ERISA...............................................................................................104
10.08 Acquisitions........................................................................................105
10.09 Negative Pledge.....................................................................................105
10.10 Dissolution, Etc....................................................................................105
10.11 Restrictive Agreements..............................................................................105
ARTICLE XI
Events of Default and Acceleration
11.01 Events of Default...................................................................................106
11.02 Global Agent to Act.................................................................................108
11.03 Cumulative Rights...................................................................................109
11.04 No Waiver...........................................................................................109
11.05 Allocation of Proceeds..............................................................................109
11.06 Judgment Currency...................................................................................110
11.07 Funding and Payment of Participations; Conversion to US Dollars.....................................110
ARTICLE XII
The Agents
12.01 Appointment, Powers, and Immunities.................................................................113
12.02 Reliance by Agents..................................................................................113
12.03 Defaults............................................................................................114
12.04 Rights as Lender....................................................................................114
12.05 Indemnification.....................................................................................115
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12.06 Non-Reliance on Agents and Other Lenders............................................................115
12.07 Resignation of an Agent.............................................................................115
12.08 Fees................................................................................................116
ARTICLE XIII
Miscellaneous
13.01 Assignments and Participations......................................................................117
13.02 Notices.............................................................................................119
13.03 Right of Set-off; Adjustments.......................................................................121
13.04 Survival............................................................................................121
13.05 Expenses............................................................................................122
13.06 Amendments and Waivers..............................................................................122
13.07 Counterparts........................................................................................123
13.08 Termination.........................................................................................123
13.09 Usury Savings Clause................................................................................123
13.10 Indemnification; Limitation of Liability............................................................124
13.11 Agreement Controls..................................................................................125
13.12 Severability........................................................................................125
13.13 Entire Agreement....................................................................................125
13.14 Governing Law; Waiver of Jury Trial.................................................................126
EXHIBIT A Lenders' Commitments and Applicable Commitment Percentages...........................................A-1
EXHIBIT B Form of Assignment and Acceptance....................................................................B-1
EXHIBIT C Notice of Appointment (or Revocation) of Authorized Representative...................................C-1
EXHIBIT D-1 Borrowing Notice (U.S. Facility Loans)...........................................................D-1-1
EXHIBIT D-2 Borrowing Notice (UK Facility Loans).............................................................D-2-1
EXHIBIT D-3 Borrowing Notice (Canadian Facility Loans).......................................................D-3-1
EXHIBIT D-4 Borrowing Notice (Australian Facility Loans).....................................................D-4-1
EXHIBIT E Form of Guaranty Agreement...........................................................................E-1
EXHIBIT F Form of US Facility Note.............................................................................F-1
EXHIBIT G Form of Opinion of Counsel for Borrowers and Guarantor...............................................G-1
EXHIBIT H Form of Compliance Certificate.......................................................................H-1
SCHEDULE 1.01 Authorized Representatives.....................................................................Sch-1
SCHEDULE 8.02(a) Subsidiaries and Stockholders...............................................................Sch-3
SCHEDULE 8.02(f) Litigation..................................................................................Sch-4
SCHEDULE 10.03 Existing Liens................................................................................Sch-5
SCHEDULE 10.06 Transactions with Affiliates..................................................................Sch-6
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CREDIT AGREEMENT
THIS CREDIT AGREEMENT, dated as of August 7, 1998 (the "Agreement"), is
made by and among:
AMERICAN GREETINGS CORPORATION, a corporation duly organized and
existing under the laws of the State of Ohio (the "Company" and the "US Facility
Borrower"); and
CARLTON CARDS (FRANCE) S.N.C., a societe en nom collectif organized
under the laws of France, registered with the Registry of Commerce and of
Companies of La Courneuve under Number RCS B 387 702 954 ("Carlton France"); and
CARLTON CARDS LIMITED (Registered No. 61412), UK GREETINGS LIMITED (Registered
No. 3480710), XXXXXX WHITE GROUP LIMITED (Registered No. 3220599) and CAMDEN
GRAPHICS LIMITED (Registered No. 1001272), each a corporation duly organized and
existing under the laws of England and Wales (collectively, the AUK
Subsidiaries" and, together with Carlton France, the AUK Facility Borrowers");
and
CARLTON CARDS LIMITED, a corporation duly organized and existing under
the laws of Ontario, Canada (the "Canadian Facility Borrower"); and
XXXX XXXXX (AUSTRALIA) LTD., XXXX XXXXX HOLDING CORP. and XXXX XXXXX
(N.Z.) LTD., each a corporation duly organized and existing under the laws of
Delaware and doing business in Australia (collectively, the "Australian Facility
Borrowers"; the US Facility Borrower, the UK Facility Borrowers, the Canadian
Facility Borrower and the Australian Facility Borrowers are sometimes referred
to collectively as the "Borrowers" or individually as a "Borrower"); and
NATIONSBANK, NATIONAL ASSOCIATION, BANK OF AMERICA NATIONAL TRUST &
SAVINGS ASSOCIATION, NATIONAL CITY BANK, NBD BANK, KEYBANK NATIONAL ASSOCIATION,
ROYAL BANK OF CANADA, MELLON BANK, N.A., and PNC BANK, N.A., the initial lenders
under the US Facility, and each other lender which may hereafter execute and
deliver an instrument of assignment with respect to the US Facility under this
Agreement pursuant to Section 13.01 (hereinafter such lenders may be referred to
individually as a "US Facility Lender" or collectively as the "US Facility
Lenders"); and
BANK OF AMERICA CANADA, FIRST CHICAGO XXX XXXX, XXXXXX, XXXXX XXXX XX
XXXXXX and MELLON BANK CANADA, the initial lenders under the Canadian Facility,
and each other lender which may hereafter execute and deliver an instrument of
assignment with respect to the Canadian Facility under this Agreement pursuant
to Section 13.01 (hereinafter such lenders may be referred to individually as a
"Canadian Facility Lender" or collectively as the "Canadian Facility Lenders");
and
NATIONSBANK, NATIONAL ASSOCIATION, NATIONAL CITY BANK, PNC BANK, N.A.
and KEYBANK NATIONAL ASSOCIATION, the initial lenders under the UK Facility, and
each other lender which may hereafter execute and deliver an instrument of
assignment with respect
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to the UK Facility under this Agreement pursuant to Section 13.01 (hereinafter
such lenders may be referred to individually as a "UK Facility Lender" or
collectively as the "UK Facility Lenders"); and
BA AUSTRALIA LIMITED, THE FIRST NATIONAL BANK OF CHICAGO, and ROYAL
BANK OF CANADA, the initial Lenders under the Australian Facility, and each
other lender which may hereafter execute and deliver an instrument of assignment
with respect to the Australian Facility under this Agreement pursuant to Section
13.01 (hereinafter such lenders may be referred to individually as an
"Australian Facility Lender" or collectively as the "Australian Facility
Lenders"; the US Facility Lenders, the Canadian Facility Lenders, the UK
Facility Lenders and the Australian Facility Lenders are sometimes referred to
collectively as the "Lenders" or individually as a "Lender"); and
NATIONAL CITY BANK, in its capacity as agent for the US Facility
Lenders (the "US Facility Agent");
NATIONSBANK, NATIONAL ASSOCIATION, in its capacity as agent for the UK
Facility Lenders (the "UK Facility Agent");
BANK OF AMERICA CANADA, a bank chartered under the laws of Canada
("BACAN"), in its capacity as agent for the Canadian Facility Lenders (the
"Canadian Facility Agent");
BANK OF AMERICA NATIONAL TRUST and SAVINGS ASSOCIATION, in its capacity
as agent for the Australian Facility Lenders (the "Australian Facility Agent";
the US Facility Agent, the UK Facility Agent, the Canadian Facility Agent and
the Australian Facility Agent are sometimes referred to collectively as the
"Facility Agents" or individually as a "Facility Agent"); and
NATIONSBANK, NATIONAL ASSOCIATION, in its capacity as global
administrative agent for each of the Lenders (the "Global Agent" and together
with the Facility Agents, the "Agents").
W I T N E S S E T H:
WHEREAS, the US Facility Borrower and certain US Facility Lenders (the
"Existing US Lenders") are parties to a Credit Agreement dated as of June 10,
1994 (the "Existing US Agreement") pursuant to which the Existing US Lenders
have made available to the US Facility Borrower a revolving credit facility of
up to US $650,000,000 (the facility described above together with any other
facilities under the Existing US Agreement are referred to collectively as the
"Prior US Facility"); and
WHEREAS, the US Facility Borrower and Carlton Cards Limited (together,
the "Existing Canadian Borrowers") and certain Canadian Facility Lenders and
other lenders (the "Existing Canadian Lenders") are parties to a Credit
Agreement dated as of January 15, 1996 (the "Existing Canadian Agreement")
pursuant to which the Existing Canadian Lenders have made available to the
Existing Canadian Borrowers a revolving credit facility of up to CAN
$100,000,000 (the facility
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described above together with any other facilities under the Existing Canadian
Agreement are referred to as the "Prior Canadian Facility"); and
WHEREAS, the US Facility Borrower and Carlton Cards Limited [UK] and
NatWest Finance (Ireland) ("NWFI") are parties to (i) a Loan Agreement dated as
of March 13, 1995 (the "Existing 1995 Irish Agreement"), pursuant to which NWFI
has made available to Carlton Cards Limited [UK] a term loan facility of up to
Stgpound,5,000,000, and (ii) a Loan Agreement dated as of July 13, 1993 (the
"Existing 1993 Irish Agreement) pursuant to which NWFI has made available to
Carlton Cards Limited [UK] a term loan facility of up to Stgpound,10,000,000
(the facilities described in (i) and (ii) above, together with any other
facilities under the Existing 1995 Irish Agreement and the Existing 1993 Irish
Agreement are referred to as the "Prior Irish Facility"); and
WHEREAS, Carlton France, Carlton Cards Limited [UK], and The First
National Bank of Chicago f/k/a NBD Bank, N.A. ("First Chicago") are parties to a
Credit Agreement dated as of February 1, 1994, as amended on each of July 1,
1995, October 4, 1996, December 17, 1996, February 26, 1997, March 25, 1997 and
July 25, 1997 (the "Existing French Agreement"), pursuant to which First Chicago
has made available to Carlton France total facilities of up to FF140,000,000
consisting of a FF80,000,000 term loan facility and a FF40,000,000 revolving
credit facility (the facilities described above together with any other
facilities under the Existing French Agreement are referred to as the "Prior
French Facility"); and
WHEREAS, Carlton Cards Limited [UK] and Carlton (UK) Retail, Limited
(together, the "Existing UK Borrowers") and First Chicago are parties to a
certain Revolving Credit Facility Letter Agreement dated as of August 8, 1991,
as amended on April 15, 1992, March 11, 1994 and April 11, 1995 (the "Existing
UK Agreement"), pursuant to which First Chicago has made available to the
Existing UK Borrowers a revolving credit facility of up to UK pound 17,000,000
(the facility described above together with any other facilities under the
Existing UK Agreement are referred to as the "Prior UK Facility"); and
WHEREAS, certain of the Australian Facility Borrowers (the "Existing
Australian Borrowers") and certain Australian Facility Lenders and other lenders
(the "Existing Australian Lenders") are parties to a Loan Facility Agreement
dated as of April 30, 1996 (the "Existing Australian Agreement") pursuant to
which the Existing Australian Lenders have made available to the Existing
Australian Borrowers a revolving credit facility of up to US $100,000,000
(equivalent amount) (the facility described above together with any other
facilities under the Existing Australian Agreement are referred to as the "Prior
Australian Facility" and together with the Prior US Facility, the Prior Canadian
Facility, the Prior Irish Facility, the Prior UK Facility and the Prior French
Facility, the "Prior Facilities"); and
WHEREAS, the Borrowers desire to replace the Prior Facilities with the
facilities herein provided; and
WHEREAS, (i) the US Facility Lenders are willing to make available to
the US Facility Borrower a revolving credit facility of up to $450,000,000; (ii)
the UK Facility Lenders are willing to make available to the UK Facility
Borrowers a revolving credit facility of up to pound 55,000,000,
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including a subfacility for the borrowing of French Francs; (iii) the Canadian
Facility Lenders are willing to make available to the Canadian Facility Borrower
a revolving credit facility of up to CAN $150,000,000; and (iv) the Australian
Facility Lenders are willing to make available to the Australian Facility
Borrowers a revolving credit facility of up to AUS $125,000,000, including a
subfacility for the borrowing of New Zealand Dollars, in each case subject to
the terms and conditions set forth herein;
NOW, THEREFORE, the Borrowers, the Lenders, and the Agents hereby agree
as follows:
ARTICLE I
Definitions and Terms
1.01 Definitions. For the purposes of this Agreement, in addition to
the definitions set forth above, the following terms shall have the respective
meanings set forth below:
"Advance" means a US Facility Advance, a UK Facility Advance,
a Canadian Facility Advance or an Australian Facility Advance, as the
case may be.
"Affected Loans" shall have the meaning therefor set forth in
Section 6.04.
"Affected Type" shall have the meaning therefor set forth in
Section 6.04.
"Affiliate" means any Person (i) which directly or indirectly
through one or more intermediaries controls, or is controlled by, or is
under common control with, the Company; or (ii) which beneficially owns
or holds 10% or more of any class of the outstanding Voting Stock of
the Company; or (iii) 10% or more of any class of the outstanding
Voting Stock (or in the case of a Person which is not a corporation,
10% or more of the equity or other ownership interest) of which is
beneficially owned or held by the Company. The term "control" means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through
ownership of Voting Stock, by contract or otherwise.
"Aggregate Commitment" means, with respect to any Lender, its
US Facility Commitment and, as applicable, the US Dollar Equivalent
Amount of the sum of its UK Facility Commitment, its Canadian Facility
Commitment and its Australian Facility Commitment.
"Aggregate Credit Exposure" shall have the meaning therefor
set forth in the definition of "Credit Exposure."
"Aggregate Facility Credit Exposure" shall have the meaning
therefor set forth in the definition of "Facility Credit Exposure."
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"Applicable Base Rate" means (i) with respect to all matters
involving the US Facility, the US Facility Base Rate, (ii) with respect
to all matters involving the Canadian Facility, the Canadian Facility
Base Rate, and (iii) with respect to all matters involving the
Australian Facility, the Australian Facility Base Rate.
"Applicable Base Rate Loan" means a Loan bearing interest at
an Applicable Base Rate.
"Applicable Borrowers" means (i) with respect to all matters
involving the US Facility, the US Facility Borrower, (ii) with respect
to all matters involving the UK Facility, the UK Facility Borrowers,
(iii) with respect to all matters involving the Canadian Facility, the
Canadian Facility Borrower, and (iv) with respect to all matters
involving the Australian Facility, the Australian Facility Borrowers.
"Applicable Commitment Percentage" means, for each Lender,
with respect to the Obligations hereunder arising in connection with
each separate Facility and the Total Facilities, a fraction (expressed
as a percentage), the numerator of which shall be the amount of such
Lender's Aggregate Commitment and the denominator of which shall be the
Total Commitment, each as of the date of determination, which
Applicable Commitment Percentage for each Lender as of the Closing Date
is as set forth in Exhibit A attached hereto and incorporated herein by
reference; provided that the Applicable Commitment Percentages of each
Lender shall be increased or decreased to reflect any assignments to or
by such Lender effected in accordance with Section 13.01 hereof.
"Applicable Currency" means (i) with respect to the US
Facility, US Dollars, (ii) with respect to the UK Facility, British
Pounds Sterling or, if the context requires, French Francs, (iii) with
respect to the Canadian Facility, Canadian Dollars and (iv) with
respect to the Australian Facility, Australian Dollars or, if the
context requires, New Zealand Dollars.
"Applicable Facility Agent" means (i) with respect to all
matters involving the US Facility, the US Facility Agent, (ii) with
respect to all matters involving the UK Facility, the UK Facility
Agent, (iii) with respect to all matters involving the Canadian
Facility, the Canadian Facility Agent and (iv) with respect to all
matters involving the Australian Facility, the Australian Facility
Agent.
"Applicable Facility Commitment" means, with respect to any
Lender and any Facility, the obligation of such Lender to incur
Facility Credit Exposure as an Applicable Lender or Participant in such
Facility, as applicable, up to an aggregate principal amount at any
time outstanding equal to the product of such Lender's Applicable
Commitment Percentage times the Applicable Total Facility Commitment,
as the same may be increased or decreased from time to time pursuant to
this Agreement.
"Applicable Fronting Commitment" means, for any Lender, (i)
with respect to the US Facility, such Lender's US Facility Fronting
Commitment, if any, (ii) with respect to the UK Facility, such Lender's
UK Facility Fronting Commitment, if any, (iii) with respect to the
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Canadian Facility, such Lender's Canadian Facility Fronting Commitment,
if any, and (iv) with respect to the Australian Facility, such Lender's
Australian Facility Fronting Commitment, if any.
"Applicable Fronting Percentage" means (i) for each US
Facility Lender, with respect to the Obligations hereunder arising in
connection with the US Facility, a fraction (expressed as a
percentage), the numerator of which shall be the amount of its US
Facility Fronting Commitment and the denominator of which shall be the
Total US Facility Commitment, each as of the date of determination,
which Applicable Fronting Percentage for each US Facility Lender as of
the Closing Date is as set forth in Exhibit A attached hereto and
incorporated herein by this reference; (ii) for each UK Facility
Lender, with respect to the Obligations hereunder arising in connection
with the UK Facility, a fraction (expressed as a percentage), the
numerator of which shall be the amount of its UK Facility Fronting
Commitment and the denominator of which shall be the Total UK Facility
Commitment, each as of the date of determination, which Applicable
Fronting Percentage for each UK Facility Lender as of the Closing Date
is as set forth in Exhibit A attached hereto and incorporated herein by
this reference; (iii) for each Canadian Facility Lender, with respect
to the Obligations hereunder arising in connection with the Canadian
Facility, a fraction (expressed as a percentage), the numerator of
which shall be the amount of its Canadian Facility Fronting Commitment
and the denominator of which shall be the Total Canadian Facility
Commitment, each as of the date of determination, which Applicable
Fronting Percentage for each Canadian Facility Lender as of the Closing
Date is as set forth in Exhibit A attached hereto and incorporated
herein by this reference; and (iv) for each Australian Facility Lender,
with respect to the Obligations hereunder arising in connection with
the Australian Facility, a fraction (expressed as a percentage), the
numerator of which shall be the amount of its Australian Facility
Fronting Commitment and the denominator of which shall be the Total
Australian Facility Commitment, each as of the date of determination,
which Applicable Fronting Percentage for each Australian Facility
Lender as of the Closing Date is as set forth in Exhibit A attached
hereto and incorporated herein by this reference; provided that the
Applicable Fronting Percentages of each Lender shall be increased or
decreased to reflect any assignments to or by such Lender effected in
accordance with Section 13.01 hereof.
"Applicable Lenders" means (i) with respect to all matters
involving the US Facility, the US Facility Lenders, (ii) with respect
to all matters involving the UK Facility, the UK Facility Lenders,
(iii) with respect to all matters involving the Canadian Facility, the
Canadian Facility Lenders, and (iv) with respect to all matters
involving the Australian Facility, the Australian Facility Lenders.
"Applicable Lending Office" means, for each Lender and for
each Type and Applicable Currency of Loan, the "Lending Office" of such
Lender (or of an affiliate of such Lender) designated for such Type and
Applicable Currency of Loan on the signature pages hereof or in an
Assignment and Acceptance, or such other office of such Lender (or an
affiliate of such Lender) as such Lender may from time to time specify
to the Applicable Facility Agent and the Applicable Borrowers by
written notice in accordance with the terms
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hereof as the office by which its Loans of such Type and Applicable
Currency are to be made and maintained.
"Applicable Margin" means (i) for purposes of calculating the
applicable interest rate for any Interest Period for each Offshore Rate
Loan, and the applicable Facility Fee, under each of the UK Facility
and the Australian Facility, and the applicable interest rate for any
Interest Period for each Canadian Facility BA Rate Loan, and the
applicable Facility Fee, under the Canadian Facility Full Maturity
Tranche, that percent per annum set forth below, which shall be (A)
determined as of the last day of each fiscal quarter of the Company
(each, a "Determination Date") and (B) effective beginning on the first
day next following the date of delivery of the certificate delivered to
the Agents pursuant to Section 9.01(a) or 9.01(b) hereof (each, a
"Compliance Certificate") as to such Determination Date (the
"Compliance Date"), with respect to all such Offshore Rate Loans and
Canadian Facility BA Rate Loans existing and the calculation of all
such Facility Fees, on and after such Compliance Date, all based upon
the computations and information set forth in the Compliance
Certificate (subject to review and approval of such computations by the
Agents) with respect to (x) the ratio of Consolidated Funded
Indebtedness to Consolidated Total Capitalization as at such
Determination Date and (y) the rating (the "Debt Rating") assigned to
each class of long term senior secured indebtedness of the Company (the
"Rated Debt") by either of S&P or Xxxxx'x as at such Determination Date
(provided that if such determination shall result in a different
Applicable Margin under (x) and (y) above, the lower Applicable Margin
shall apply):
Applicable
Applicable Margin for
Company's Senior Unsecured Consolidated Margin Facility
Level Indebtedness Rating Leverage Ratio for Loans Fees
----- ------------------- -------------- --------- ----
I Either A- or higher by S&P or less than or equal to .30 to 1.00 .150% .075%
A3 or higher by Xxxxx'x
II Either BBB+ or higher by S&P less than or equal to .40 to .205% .095%
or Baa1 or higher by Xxxxx'x 1.00 and greater than .30 to 1.00
III Either BBB or higher by S&P or less than or equal to .45 to .275% .125%
Baa2 or higher by Xxxxx'x 1.00 and greater than .40 to 1.00
IV Lower than BBB by S&P or lower greater than .45 to 1.00 .350% .150%
than Baa2 by Xxxxx'x
; and (ii) for purposes of calculating the applicable interest rate for
any Interest Period for each Eurodollar Rate Loan, and the applicable
Facility Fee, under the US Facility, and the applicable interest rate
for any Interest Period for each Canadian Facility BA Rate Loan, and
the applicable Facility Fee, under the Canadian Facility Renewable
Tranche, that percent per annum set forth below, which shall be (A)
determined as of each Determination Date and (B) effective beginning on
the first day next following the applicable Compliance Date, with
respect to all such Eurodollar Rate Loans and Canadian Facility BA Rate
Loans existing, and the calculation of all such Facility Fees, on and
after such Compliance Date, all based upon the computations and
information set forth in the Compliance Certificate (subject to review
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14
and approval of such computations by the Agents) with respect to (x)
the ratio of Consolidated Funded Indebtedness to Consolidated Total
Capitalization as at such Determination Date and (y) the Debt Rating
assigned to each class of Rated Debt by either of S&P or Xxxxx'x as at
such Determination Date (provided that if such determination shall
result in a different Applicable Margin under (x) and (y) above, the
lower Applicable Margin shall apply):
Applicable
Applicable Margin for
Company's Senior Unsecured Consolidated Margin Facility
Level Indebtedness Rating Leverage Ratio for Loans Fees
----- ------------------- -------------- --------- ----
I Either A- or higher by S&P or less than or equal to .30 to .160% .065%
A3 or higher by Xxxxx'x 1.00
II Either BBB+ or higher by S&P or less than or equal to .40 to .215% .085%
Baa1 or higher by Xxxxx'x 1.00 and greater than .30 to
1.00
III Either BBB or higher by S&P or less than or equal to .45 to .300% .100%
Baa2 or higher by Xxxxx'x 1.00 and greater than .40 to
1.00
IV Lower than BBB by S&P and lower greater than .45 to 1.00 .375% .125%
than Baa2 by Xxxxx'x
; provided, however, that if, in both (i) and (ii) above, the period to which
the Compliance Certificate relates is the third fiscal quarter of any Fiscal
Year of the Company, the Consolidated Leverage Ratio set forth in each table
above shall be adjusted as set forth below at the applicable level:
Consolidated
Level Leverage Ratio
----- --------------
I less than or equal to .35 to 1.00
II less than or equal to .425 to 1.00
and greater than .35 to 1.00
III less than or equal to .475 to 1.00 and
greater than .425 to 1.00
IV greater than .475 to 1.00
In the event that the Debt Ratings assigned by S&P and Xxxxx'x
differ by one rating level, the Applicable Margin shall be determined
by reference to the level in the charts above having the higher
assigned Debt Rating without regard to the lower assigned Debt Rating.
In the event that the Debt Ratings assigned by S&P and Xxxxx'x differ
by more than one rating level, the Applicable Margin shall be
determined by reference to the Debt Rating which is one rating level
lower than the higher assigned Debt Rating without regard to the lower
assigned Debt Rating. By way of illustration under (i) above and not
limitation, if S&P assigns a rating of BBB+ (i.e., Level II) and
Xxxxx'x assigns a rating of Baa2 (i.e., Level III), the Applicable
Margin will be .205% (i.e., Level II); if S&P assigns a rating of A-
(i.e.,
8
15
Level I) and Xxxxx'x assigns a rating of Baa3 (i.e., Level IV), the
Applicable Margin will be .205% (i.e., Level II).
Notwithstanding any provision herein to the contrary, if the
Company shall fail to deliver any Compliance Certificate within the
applicable period set forth in Section 9.01(a) or (b), as the case may
be, then the Applicable Margin in each Facility shall be the highest
Applicable Margin for such Facility set forth above commencing on the
date such Compliance Certificate was required to have been delivered
until the date the appropriate Compliance Certificate is so delivered.
From the Closing Date to the first Compliance Date, the Applicable
Margin for Loans shall be .150% under (i) above and .160% under (ii)
above, and the Applicable Margin for Facility Fees shall be .075% under
(i) above and .065% under (ii) above.
The Global Agent shall give each Facility Agent, within one
(1) Business Day of receipt of any Compliance Certificate,
telefacsimile notice, or telephonic notice (confirmed in writing), of
the Applicable Margins in effect from such date.
"Applicable Rate" means the applicable interest rate for any
Fixed Rate Loan or Floating Rate Loan available in a specific Facility
as selected by the Applicable Borrower or otherwise applicable
hereunder.
"Applicable Reference Rate" means
(i) for any Eurodollar Rate Loan made under the US
Facility for any Interest Period therefor, the rate per annum
(rounded upwards, if necessary, to the nearest 1/100 of 1%)
determined by the US Facility Agent to appear on Telerate Page
3750 or other appropriate Telerate Page (or any successor
page) as the London interbank offered rate for deposits in the
Applicable Currency at approximately 11:00 A.M. (London,
England time) two (2) Business Days prior to the first day of
such Interest Period for a term comparable to such Interest
Period. If for any reason such rate is not available, the term
"Applicable Reference Rate" shall mean, for any Eurodollar
Rate Loan for any Interest Period therefor, the rate per annum
(rounded upwards, if necessary, to the nearest 1/100 of 1%)
determined by the US Facility Agent to appear on Reuters
Screen LIBO Page as the London interbank offered rate for
deposits in the Applicable Currency at approximately 11:00
A.M. (London, England time) two (2) Business Days prior to the
first day of such Interest Period for a term comparable to
such Interest Period; provided, however, if more than one rate
is specified on Reuters Screen LIBO Page, the applicable rate
shall be the arithmetic mean of all such rates (rounded
upwards, if necessary, to the nearest 1/100 of 1%); and
(ii) for any Offshore Rate Loan made in British
Pounds Sterling under the UK Facility for any Interest Period
therefor, the rate per annum equal to the sum of (a) LIBOR
plus (b) the UK Facility Mandatory Cost, in each case on the
first day of such Interest Period for a term comparable to
such Interest Period; and
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(iii) for any Offshore Rate Loan made in French
Francs under the UK Facility for any Interest Period therefor,
the rate per annum equal to LIBOR as of two (2) Business Days
prior to the first day of such Interest Period for a term
comparable to such Interest Period;
(iv) for any Offshore Rate Loan made in Australian
Dollars under the Australian Facility for any Interest Period
therefor, the rate per annum equal to the sum of (a) the
Australian Bank Xxxx Swap Reference Rate plus (b) the
additional costs (expressed as a percentage per annum and
rounded upwards, if necessary, to the nearest five decimal
places) to the Australian Facility Lenders of complying with
any reserve ratio requirement or analogous requirement of any
central banking or financial regulatory authority imposed in
respect of the funding or maintenance of the Australian
Facility Commitments or the Australian Facility Loans; and
(v) for any Offshore Rate Loan made in New Zealand
Dollars under the Australian Facility for any Interest Period
therefor, the rate per annum equal to the sum of (a) the New
Zealand Bank Xxxx Reference Rate plus (b) the additional costs
(expressed as a percentage per annum and rounded upwards, if
necessary, to the nearest five decimal places) to the
Australian Facility Lenders of complying with any reserve
ratio requirement or analogous requirement of any central
banking or financial regulatory authority imposed in respect
of the funding or maintenance of the Australian Facility
Commitments or the Australian Facility Loans.
"Applicable Reserve Requirement" means, at any time, for any
Eurodollar Rate Loan the maximum rate at which reserves (including,
without limitation, any marginal, special, supplemental or emergency
reserves) are required to be maintained with respect thereto under
regulations issued from time to time by the Board or other applicable
banking regulator by the member banks of the Federal Reserve System
against, "Eurocurrency liabilities" (as such term is defined in
Regulation D). Without limiting the effect of the foregoing, the
Applicable Reserve Requirement shall reflect any other reserves
required to be maintained by such member banks with respect to (i) any
category of liabilities which includes deposits by reference to which
the applicable Eurodollar Rate or any other interest rate of a Loan is
to be determined, or (ii) any category of extensions of credit or other
assets which include Eurodollar Rate Loans. An Eurodollar Rate Loan
shall be deemed to constitute Eurocurrency liabilities and as such
shall be deemed subject to reserve requirements without benefits of
credit for proration, exceptions or offsets that may be available from
time to time to the applicable Lender. The rate of interest on
Eurodollar Rate Loans shall be adjusted automatically on and as of the
effective date of any change in the Applicable Reserve Requirement.
"Applicable Total Facility Commitment" means (i) with respect
to the US Facility, the Total US Facility Commitment, (ii) with respect
to the UK Facility, the Total UK Facility Commitment, (iii) with
respect to the Canadian Facility, the Total Canadian Facility
Commitment and (iv) with respect to the Australian Facility, the Total
Australian Facility Commitment.
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"Assignment and Acceptance" shall mean an Assignment and
Acceptance substantially in the form of Exhibit B (with blanks
appropriately filled in) delivered to the Global Agent and the
Applicable Facility Agents in connection with an assignment of a
Lender's interest in a specific Facility under this Agreement pursuant
to Section 13.01.
"Australian Bank Xxxx Swap Reference Rate" means (i) for any
date of determination with respect to any Interest Period for an
Offshore Rate Loan made in Australian Dollars under the Australian
Facility, (a) the rate (expressed as a percentage yield per annum to
maturity) determined by the Australian Facility Agent to be the rate
(rounded upwards, if necessary, to the nearest 0.01%) quoted as the
average bid rate on the Reuters Monitor System page "BBSY" at or about
10:00 A.M. (Sydney, Australia time) on the first day of such Interest
Period for bank accepted bills having a term equal to (or no more than
two (2) Business Days shorter or longer than) such Interest Period, or
(b) if (x) for any reason there is no average bid rate displayed on the
Reuters Monitor System screen BBSY page for bank accepted bills of that
term or (y) the basis on which such rates are displayed on the Reuters
Monitor System screen BBSY page is changed and in the opinion of
Australian Facility Agent those rates cease to reflect the Australian
Facility Lenders' cost of funding to the same extent as at the date of
this Agreement, then the rate (expressed as a percentage yield per
annum to maturity) determined by Australian Facility Agent to be the
average of the bid rates quoted to Australian Facility Agent by three
Australian banks selected by Australian Facility Agent at or about that
time on that day for the purchase of bills accepted by such banks
having a face value amount equal to the principal amount of such
Australian Facility Loan and a term as described in clause (i)(a) of
this definition; provided that such buying rates must be for bills of
exchange which are accepted by an Australian bank selected by
Australian Facility Agent and which have a term equivalent to the
relevant Interest Period; or (ii) for any date of determination for
purposes of determining the Australian Facility Base Rate for an
Offshore Rate Loan made in Australian Dollars under the Australian
Facility, or in the event the Australian Bank Xxxx Swap Reference Rate
cannot be determined as described in clause (i) of this definition, the
rate determined by Australian Facility Agent to be the arithmetic mean
(rounded upwards to the nearest 1/16th of one percent) of the rates, as
supplied to Australian Facility Agent at its request, quoted by the
Australian Facility Lenders to leading banks in the Australian
interbank market at or about 10:00 A.M. (Sydney, Australia time) on
such date for the offering of overnight deposits in Australian Dollars.
"Australian Dollar Equivalent Amount" means, with respect to a
specified amount of New Zealand Dollars, the amount of Australian
Dollars into which such amount of New Zealand Dollars would be
converted, based on the applicable Spot Rate of Exchange.
"Australian Dollar Fronting Commitment" means, with respect to
each Australian Facility Lender, at any date of determination, the
obligation of such Lender to make Loans in Australian Dollars to the
Australian Facility Borrowers on behalf of all the Lenders up to an
aggregate principal amount at any one time outstanding equal to the
product of such Lender's Applicable Fronting Percentage for the
Australian Facility times the Total Australian Dollar Commitment as of
such date, as such fronting commitment may be increased or decreased
from time to time pursuant to this Agreement.
11
18
"Australian Dollar Outstandings" means, at any date of
determination, that portion of the Australian Facility Outstandings
representing the aggregate principal amount of all Australian Facility
Loans outstanding in Australian Dollars.
"Australian Dollars" or "AUS $" means the lawful currency of
Australia.
"Australian Facility" means the facility described in Article
V hereof providing for Loans to the Australian Facility Borrowers by
the Australian Facility Lenders in the aggregate principal amount of
the Total Australian Facility Commitment.
"Australian Facility Advance" means a borrowing under the
Australian Facility consisting of the aggregate principal amount of an
Australian Facility Base Rate Loan or Offshore Rate Loan, as the case
may be.
"Australian Facility Agent" shall have the meaning therefor
set forth in the introduction hereto.
"Australian Facility Base Rate" means, for any day, the rate
per annum equal to the Australian Bank Xxxx Swap Reference Rate in
effect on such day for one-day borrowings in Australian Dollars.
"Australian Facility Base Rate Loan" means a Loan for which
the rate of interest is determined by reference to the Australian
Facility Base Rate.
"Australian Facility Borrowers" shall have the meaning
therefor set forth in the introduction hereto.
"Australian Facility Commitment" means, with respect to any
Lender, such Lender's Applicable Facility Commitment for the Australian
Facility.
"Australian Facility Fronting Commitment" means, with respect
to each Australian Facility Lender, the obligation of such Lender to
make Loans to the Australian Facility Borrowers on behalf of all the
Lenders up to an aggregate principal amount at any one time outstanding
equal to the product of such Lender's Applicable Fronting Percentage
for the Australian Facility times the Total Australian Facility
Commitment, as such fronting commitment may be increased or decreased
from time to time pursuant to this Agreement, and shall consist of such
Lender's Australian Dollar Fronting Commitment plus its New Zealand
Dollar Fronting Commitment.
"Australian Facility Lenders" means those Lenders identified
in the introduction hereto with respect to their making Australian
Facility Loans on behalf of all the Lenders.
"Australian Facility Loans" means Loans, both Australian
Facility Base Rate Loans and Offshore Rate Loans, made by the
Australian Facility Lenders pursuant to Section 5.01 hereof.
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19
"Australian Facility Maximum Amount" means, with respect to
each Australian Facility Borrower, 95% of the amount by which the fair
value of its assets (determined at the lesser of fair valuation and
present fair saleable value on an orderly basis) is in excess of the
total amount of its liabilities, including without limitation
Contingent Obligations, as of the Closing Date; provided, however, that
if the calculation of Australian Facility Maximum Amount in the manner
provided above as of the date payment is required of such Australian
Facility Borrower pursuant to Article V would result in a greater
positive number, then the Australian Facility Maximum Amount shall be
such greater positive number.
"Australian Facility New Zealand Dollar Tranche" means the
facility described in Article V hereof providing for Loans funded in
New Zealand Dollars to the Australian Facility Borrowers by the
Australian Facility Lenders in an aggregate principal amount not to
exceed the Total New Zealand Dollar Commitment.
"Australian Facility Outstandings" means, at any date of
determination, the Australian Dollar Outstandings plus the New Zealand
Dollar Outstandings.
"Authorized Representative" means in the case of each of the
Company and the US Facility Borrower, the UK Facility Borrowers, the
Canadian Facility Borrower and the Australian Facility Borrowers, any
of those persons listed as such on Schedule 1.01 attached hereto, or
any other person expressly designated by the Board of Directors (or the
appropriate committee thereof) of the Company as an Authorized
Representative for purposes of this Agreement, as set forth from time
to time in a certificate in the form attached hereto as Exhibit C.
"BACAN" shall have the meaning therefor set forth in the
introduction hereto.
"Bank of America" means Bank of America National Trust &
Savings Association, a national banking association.
"Board" means the Board of Governors of the Federal Reserve
System (or any successor body).
"Borrowing Notice" means the request of the Authorized
Representative of a Borrower to obtain an Advance or to elect a
subsequent Interest Period for or Convert a Loan or Loans of any Type
hereunder, as the obtaining of such Advance, such election or
Conversion of such Loan or Loans shall be otherwise permitted herein.
Any Borrowing Notice shall be binding on and irrevocable by a Borrower
and shall be in writing and signed by the Authorized Representative of
such Borrower in the form attached hereto as Exhibit D-1 for US
Facility Loans, Exhibit D-2 for UK Facility Loans, Exhibit D-3 for
Canadian Facility Loans and Exhibit D-4 for Australian Facility Loans,
as the case may be.
"British Pounds Sterling" means the lawful currency of the
United Kingdom of Great Britain and Northern Ireland and is subject to
Section 6.09.
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"British Pounds Sterling Fronting Commitment" means, with
respect to each UK Facility Lender, at any date of determination, the
obligation of such Lender to make Loans in British Pounds Sterling to
the UK Facility Borrowers on behalf of all the Lenders up to an
aggregate principal amount at any one time outstanding equal to the
product of such Lender's Applicable Fronting Percentage for the UK
Facility times the Total British Pounds Sterling Commitment as of such
date, as such fronting commitment may be increased or decreased from
time to time pursuant to this Agreement.
"British Pounds Sterling Outstandings" means, at any date of
determination, that portion of the UK Facility Outstandings
representing the aggregate principal amount of all UK Facility Loans
outstanding in British Pounds Sterling.
"Business Day" means (i) with respect to all notices,
determinations, fundings and payments in connection with US Facility
Loans or not related to any particular Facility, or with respect to all
notices, determinations, fundings and payments involving the Global
Agent, any day excluding Saturday, Sunday and any day which is a legal
holiday under the laws of the States of New York or Ohio or is a day on
which banking institutions located in either such state are authorized
or required by law or other governmental action to close, (ii) with
respect to all notices, determinations, fundings and payments in
connection with UK Facility Loans, any day, excluding Saturday, Sunday
and any day which is a legal holiday under the laws of England or is a
day on which banking institutions located in England are authorized or
required by law or other governmental action to close, which is a day
on which dealings in the Applicable Currency are carried on; (iii) with
respect to all notices, determinations, fundings and payments in
connection with Canadian Facility Loans, any day, other than a
Saturday, Sunday or other day on which commercial banks in New York
City or San Francisco and in Toronto, Canada are authorized or required
by law to close; (iv) with respect to all notices, determinations,
fundings and payments in connection with Australian Facility Loans, any
day, excluding Saturday, Sunday and any day which is a legal holiday
under the laws of the Province of New South Wales, Australia or is a
day on which banking institutions located in such Province are
authorized or required by law or other governmental action to close,
which is a day on which dealings in the Applicable Currency are carried
on and on which commercial banks are open for business in, and on which
dealings in Australian Dollars are carried on in, Hong Kong; and (v)
with respect to all notices, determinations, fundings and payments in
connection with any Eurodollar Rate Loan or Offshore Rate Loan, any day
that is a Business Day described above for the applicable Facility and
that is also a day for trading by and between banks in the Applicable
Currency in the applicable interbank Eurodollar Rate market or Offshore
Rate market, as applicable.
"Canadian Dollars" or "CAN $" means the lawful currency of
Canada.
"Canadian Facility" means the facility described in Article IV
hereof providing for Loans to the Canadian Facility Borrower by the
Canadian Facility Lenders in the aggregate principal amount of the
Total Canadian Facility Commitment.
14
21
"Canadian Facility Advance" means a borrowing under the
Canadian Facility Full Maturity Tranche or the Canadian Facility
Renewable Tranche consisting of the aggregate principal amount of a
Canadian Facility Base Rate Loan or Canadian Facility BA Rate Loan, as
the case may be.
"Canadian Facility Agent" shall have the meaning therefor set
forth in the introduction hereto.
"Canadian Facility BA Rate" means, for any Interest Period for
a Canadian Facility BA Rate Loan, the rate of interest per annum
(rounded upwards, if necessary, to the next higher 1/100 of 1%) equal
to the market bid rate determined by the Canadian Facility Agent for
banker's acceptances (with a tenor comparable to such Interest Period
and in an amount comparable to the Canadian Facility BA Rate Loan of
BACAN for such Interest Period) accepted by BACAN on the first day of
such Interest Period.
"Canadian Facility BA Rate Loan" means a Canadian Facility
Loan for which the rate of interest is determined by reference to the
Canadian Facility Fixed BA Rate.
"Canadian Facility Base Rate" means, for any day, for Canadian
Facility Loans made by Canadian Facilities Lenders, the higher of (i)
0.50% per annum above the average 30 day bankers' acceptance rate as
quoted on Reuters Service Page CDOR determined at 10:00 A.M. (Toronto,
Canada time) on such day and (ii) that annual rate of interest
designated by BACAN as its "prime rate" and established and announced
by BACAN from time to time at its offices in Toronto, Canada as the
reference rate for demand loans in Canadian Dollars made in Canada (the
"prime rate" and other rates referred to above are rates set by Bank of
America and BACAN based upon various factors including Bank of
America's and BACAN's costs and desired return, general economic
conditions and other factors, and is used as a reference point for
pricing some loans, which may be priced at, above or below such
announced rate). Any change in the reference rate announced by Bank of
America shall take effect at the opening of business on the day
specified in the public announcement of such change.
"Canadian Facility Base Rate Loan" means a Loan for which the
rate of interest is determined by reference to the Canadian Facility
Base Rate.
"Canadian Facility Borrower" shall have the meaning therefor
set forth in the introduction hereto.
"Canadian Facility Commitment" means, with respect to any
Lender, such Lender's Applicable Facility Commitment for the Canadian
Facility.
"Canadian Facility Fixed BA Rate" means, for any Interest
Period for any Canadian Facility BA Rate Loan, the rate of interest per
annum equal to the sum of the BA Rate for such Loan plus the Applicable
Margin.
15
22
"Canadian Facility Fronting Commitment" means, with respect to
each Canadian Facility Lender, the sum of its Canadian Facility
Renewable Tranche Fronting Commitment and its Canadian Facility Full
Maturity Tranche Fronting Commitment.
"Canadian Facility Full Maturity Tranche" means the facility
described in Article IV hereof providing for Canadian Facility Loans to
the Canadian Facility Borrower by the Canadian Facility Lenders from
the Closing Date until the Total Facility Termination Date in the
aggregate principal amount of the Canadian Facility Full Maturity
Tranche Commitment.
"Canadian Facility Full Maturity Tranche Commitment" means
that portion of the Total Canadian Facility Commitment providing for
Canadian Facility Loans to the Canadian Facility Borrower by the
Canadian Facility Lenders in the aggregate principal amount equal to
CAN $75,000,000.
"Canadian Facility Full Maturity Tranche Outstandings" means,
at any date of determination, that portion of the Canadian Facility
Outstandings representing the aggregate principal amount of all
Canadian Facility Loans outstanding under the Canadian Facility Full
Maturity Tranche.
"Canadian Facility Full Maturity Tranche Fronting Commitment"
means, with respect to each Canadian Facility Lender, the obligation of
such Lender to make or Continue Loans to the Canadian Facility Borrower
on behalf of all the Lenders up to an aggregate principal amount at any
one time outstanding equal to the product of such Lender's Applicable
Fronting Commitment for the Canadian Facility times the Canadian
Facility Full Maturity Tranche Commitment, as such fronting commitment
may be increased or decreased from time to time pursuant to this
Agreement.
"Canadian Facility Lenders" means those Lenders identified in
the introduction hereto with respect to their making Canadian Facility
Loans on behalf of all the Lenders.
"Canadian Facility Loans" means Loans, both Canadian Facility
Base Rate Loans and Canadian Facility BA Rate Loans, made by the
Canadian Facility Lenders pursuant to Article IV hereof.
"Canadian Facility Outstandings" means, at any date of
determination, the aggregate principal amount of all Canadian Facility
Loans then outstanding.
"Canadian Facility Renewable Tranche" means the facility
described in Article IV hereof providing for Canadian Facility Loans to
the Canadian Facility Borrower by the Canadian Facility Lenders from
the Closing Date until the Canadian Facility Renewable Tranche
Termination Date in the aggregate principal amount of the Canadian
Facility Renewable Tranche Commitment.
"Canadian Facility Renewable Tranche Commitment" means that
portion of the Total Canadian Facility Commitment providing for
Canadian Facility Loans to the Canadian Facility
16
23
Borrower by the Canadian Facility Lenders in the aggregate principal
amount equal to (i) as of the Closing Date, CAN $ 75,000,000, and (ii)
as of any subsequent date of determination thereof, such amount set
forth in (i) above as the same may be reduced from time to time
pursuant to Section 4.12 hereof.
"Canadian Facility Renewable Tranche Extension Date" means
August 5, 1999 and each date thereafter to which the Canadian Facility
Renewable Tranche Termination Date has been extended, if any, pursuant
to Section 4.12 hereof, but in no event later than August 7, 2002.
"Canadian Facility Renewable Tranche Fronting Commitment"
means, with respect to each Canadian Facility Lender, the obligation of
such Lender to make or Continue Loans to the Canadian Facility Borrower
on behalf of all the Lenders up to an aggregate principal amount at any
one time outstanding equal to the product of such Lender's Applicable
Fronting Commitment for the Canadian Facility times the Canadian
Facility Renewable Tranche Commitment, as such fronting commitment may
be increased or decreased from time to time pursuant to this Agreement.
"Canadian Facility Renewable Tranche Outstandings" means, at
any date of determination, that portion of the Canadian Facility
Outstandings representing the aggregate principal amount of all
Canadian Facility Loans outstanding under the Canadian Facility
Renewable Tranche.
"Canadian Facility Renewable Tranche Termination Date" means
the earlier of (i) August 5, 1999, or such later date with respect to
the Unutilized Canadian Facility Renewable Tranche Commitment as the
Canadian Facility Borrower and the Lenders shall agree in writing
pursuant to Section 4.12 hereof, or (ii) the Total Facility Termination
Date.
"Canadian Facility Term Loan" shall have the meaning therefor
set forth in Section 4.13.
"Canadian Facility Term Loan Facility" means the facility
described in Section 4.13 hereof providing for the conversion of
Canadian Facility Renewable Tranche Outstandings on each Canadian
Facility Renewable Tranche Extension Date to Canadian Facility Term
Loans.
"Canadian Facility Term Loan Outstandings" means, at any date
of determination, that portion of the Canadian Facility Outstandings
representing the aggregate principal amount of all Canadian Facility
Loans outstanding under the Canadian Term Loan Facility.
"Canadian Overnight Rate" means the rate of interest per annum
determined by the Canadian Facility Agent at its head office in
Toronto, Canada from time to time at which overnight deposits in
Canadian Dollars, in an amount approximately equal to the amount with
respect to which such rate is being determined, would be offered for
such day by the Canadian Facility Agent to major banks in the Canadian
interbank market. The Canadian Overnight
17
24
Rate for any day which is not a Business Day shall be the Canadian
Overnight Rate for the preceding Business Day.
"Capital Leases" means all leases which have been or should be
capitalized in accordance with Generally Accepted Accounting Principles
as in effect from time to time including Statement No. 13 of the
Financial Accounting Standards Board and any successor thereof.
"Change of Control" means, at any time:
(A) with respect to the Company:
(i) any "person" or "group" (each as used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act)
either (A) becomes the "beneficial owner" (as defined
in Rule 13d-3 of the Exchange Act), directly or
indirectly, of Voting Stock of the Company (or
securities convertible into or exchangeable for such
Voting Stock) representing 20% or more of the
combined voting power of all Voting Stock of the
Company (on a fully diluted basis) or (B) otherwise
has the ability, directly or indirectly, to elect a
majority of the board of directors of the Company; or
(ii) during any period of up to 24
consecutive months, commencing on the Closing Date,
individuals who at the beginning of such 24-month
period were directors of the Company shall cease for
any reason (other than the death, disability or
retirement) to constitute a majority of the board of
directors of the Company; and
(B) with respect to any Borrower other than the
Company, such Borrower ceases for any reason to be a
wholly-owned Subsidiary of the Company.
"Closing Date" means the date as of which this Agreement is
executed by the Borrowers, the Lenders and the Agents and on which the
conditions set forth in Section 7.01 hereof have been satisfied.
"Code" means the Internal Revenue Code of 1986, as amended,
and any regulations promulgated thereunder.
"Commitment" means, for any Lender, any of the Australian
Facility Commitment, Canadian Facility Commitment, UK Facility
Commitment and US Facility Commitment, as applicable.
"Company" shall have the meaning therefor set forth in the
introduction hereto.
"Compliance Certificate" shall have the meaning therefor set
forth in the definition of "Applicable Margin."
18
25
"Compliance Date" shall have the meaning therefor set forth in
the definition of "Applicable Margin."
"Consistent Basis" in reference to the application of
Generally Accepted Accounting Principles means the accounting
principles observed in the period referred to are comparable in all
material respects to those applied in the preparation of the audited
financial statements of the Company referred to in Section 8.02(b)(i)
hereof.
"Consolidated EBIT" means, with respect to the Company and its
Subsidiaries for the Four-Quarter Period ended on or immediately
preceding the date of computation thereof, the sum of, without
duplication, (i) Consolidated Net Income during such period, plus (ii)
Consolidated Interest Expense during such period, (iii) plus taxes paid
on income during such period, all determined on a consolidated basis in
accordance with Generally Accepted Accounting Principles applied on a
Consistent Basis.
"Consolidated Funded Indebtedness" means all Indebtedness for
Money Borrowed of the Company and its Subsidiaries, all determined on a
consolidated basis in accordance with Generally Accepted Accounting
Principles applied on a Consistent Basis.
"Consolidated Interest Expense" means, with respect to any
period of computation thereof, the gross interest expense of the
Company and its Subsidiaries, including without limitation (i) the
amortization of debt discounts, (ii) the amortization of all reserves
and fees payable in connection with the incurrence of Indebtedness to
the extent included in interest expense and (iii) the portion of any
liabilities incurred in connection with Capital Leases allocable to
interest expense, all determined on a consolidated basis in accordance
with Generally Accepted Accounting Principles applied on a Consistent
Basis.
"Consolidated Net Income" means, with respect to any period of
computation thereof, the gross revenues of the Company and its
Subsidiaries less all operating and non-operating expenses thereof
including taxes on income, all determined on a consolidated basis in
accordance with Generally Accepted Accounting Principles applied on a
Consistent Basis; but excluding as income: (i) gains on the sale,
conversion or other disposition of capital assets, (ii) gains on the
acquisition, retirement, sale or other disposition of capital stock and
other securities of the Company or any Subsidiary, (iii) gains on the
collection of proceeds of life insurance policies, (iv) any write-up of
any asset, and (v) any other gain or credit of an extraordinary nature
as determined in accordance with Generally Accepted Accounting
Principles applied on a Consistent Basis.
"Consolidated Shareholders' Equity" means, at any time as of
which the amount thereof is to be determined, the sum of the following
in respect of the Company and its Subsidiaries (determined on a
consolidated basis and excluding intercompany items among the Company
and its Subsidiaries and any upward adjustment after the Closing Date
due to revaluation of assets): (i) the amount of issued and outstanding
share capital, plus (ii) the amount of additional paid-in capital and
retained income (or, in the case of a deficit, minus the amount of such
deficit), plus (iii) the amount of any foreign currency translation
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adjustment (if positive, or, if negative, minus the amount of such
translation adjustment) minus (iv) the absolute value of any treasury
stock, all determined in accordance with Generally Accepted Accounting
Principles applied on a Consistent Basis.
"Consolidated Total Capitalization" means the sum of
Consolidated Shareholders' Equity and Consolidated Funded Indebtedness.
"Contingent Obligation" of any Person means all contingent
liabilities required (or which, upon the creation or incurring thereof,
would be required) to be included in the consolidated financial
statements (including footnotes) of such Person in accordance with
Generally Accepted Accounting Principles applied on a Consistent Basis,
including Statement No. 5 of the Financial Accounting Standards Board,
and any obligation of such Person guaranteeing or in effect
guaranteeing any Indebtedness, dividend or other obligation of any
other Person (the "primary obligor") in any manner, whether directly or
indirectly, including obligations of such Person however incurred:
(1) to purchase such Indebtedness or other obligation
or any property or assets constituting security therefor;
(2) to advance or supply funds in any manner (i) for
the purchase or payment of such Indebtedness or other
obligation, or (ii) to maintain a minimum working capital, net
worth or other balance sheet condition or any income statement
condition of the primary obligor;
(3) to grant or convey any lien, security interest,
pledge, charge or other encumbrance on any property or assets
of such Person to secure payment of such Indebtedness or other
obligation;
(4) to lease property or to purchase securities or
other property or services primarily for the purpose of
assuring the owner or holder of such Indebtedness or
obligation of the ability of the primary obligor to make
payment of such Indebtedness or other obligation; or
(5) otherwise to assure the owner of the Indebtedness
or such obligation of the primary obligor against loss in
respect thereof.
With respect to Contingent Obligations (such as litigation, guarantees
and pension plan liabilities), such liabilities shall be computed at
the amount which, in light of all the facts and circumstances existing
at the time, represent the amount which can reasonably be expected to
become an actual or matured liability.
"Continue", "Continuation", "Continuance" and "Continued"
shall refer to the continuation pursuant to Sections 2.08, 3.08, 4.08
or 5.08 hereof of a Fixed Rate Loan from one Interest Period to the
next Interest Period.
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"Convert", "Conversion" and "Converted" shall refer to a
conversion pursuant to Sections 2.08, 3.08, 4.08 or 5.08 or Article VI
of one Type of Loan into another Type of Loan.
"Credit Exposure" means, with respect to any Lender, the
aggregate principal amount of all outstanding Loans under the Total
Facilities owing to such Lender, to the extent no other Lender has
funded and paid for a Participation in such Loans, plus all
Participations funded and paid for by such Lender in all other Loans
under the Total Facilities, and "Aggregate Credit Exposure" means the
sum of all Credit Exposures of all Lenders in the Total Facilities.
"Debt Rating" shall have the meaning therefor set forth in the
definition of "Applicable Margin."
"Default" means any event or condition which, with the giving
or receipt of notice or lapse of time or both, would constitute an
Event of Default hereunder.
"Default Rate" means (i) with respect to each Eurodollar Rate
Loan, each Offshore Rate Loan and each Canadian Facility BA Rate Loan,
until the end of the Interest Period applicable thereto, a rate of two
percent (2%) above the Eurodollar Rate, Offshore Rate or Canadian
Facility Fixed BA Rate applicable to such Loan, and thereafter at a
rate of interest per annum which shall be two percent (2%) above (A) in
the case of US Facility Loans, Canadian Facility Loans or Australian
Facility Loans, the Applicable Base Rate, and (B) in the case of UK
Facility Loans, the Offshore Rate determined based on successive
Interest Periods of one (1) month each; and (ii) with respect to each
Applicable Base Rate Loan, at a rate of interest per annum which shall
be two percent (2%) above the Applicable Base Rate.
"Determination Date" shall have the meaning therefor set forth
in the definition of "Applicable Margin."
"Eligible Assignee" with respect to a specific Facility means
(i) a Lender currently in such Facility; (ii) any other Lender, or an
affiliate of any Lender, which, through its Applicable Lending Office,
is capable of lending the Applicable Currency to the Applicable
Borrowers without the imposition of any withholding or similar taxes;
and (iii) any other Person which has and maintains an Investment Grade
Rating and which, through its Applicable Lending Office, is capable of
lending the Applicable Currency to the Applicable Borrowers without the
imposition of any withholding or similar taxes and which is approved by
the Applicable Facility Agent, the Global Agent and, unless an Event of
Default has occurred and is continuing at the time any assignment is
effected in accordance with Section 13.01, the Company, such approval
not to be unreasonably withheld or delayed by the Company, the
Applicable Facility Agent or the Global Agent and such approval to be
deemed given by the Company if no objection is received by the
assigning Lender, the Applicable Facility Agent and the Global Agent
from the Company within two (2) Business Days after notice of such
proposed assignment has been provided by the assigning Lender to the
Company; provided, however, that neither the Company nor an affiliate
of the Company shall qualify as an Eligible
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Assignee; provided further, however, that the Company may withhold
approval hereunder in its sole discretion if such assignment would give
rise to the payment of any additional costs under Article VI.
"Employee Benefit Plan" means (i) any employee benefit plan,
including any Pension Plan, within the meaning of Section 3(3) of ERISA
which (A) is maintained for employees of the Company, any of its ERISA
Affiliates or any Subsidiary, (B) is assumed by the Company, any of its
ERISA Affiliates or any Subsidiary, in connection with any acquisition
of another Person or (C) has at any time been maintained for the
employees of the Company, or any current or former ERISA Affiliate or
any Subsidiary, or (ii) any plan, arrangement, understanding or scheme
maintained by the Company or any Subsidiary that provides retirement,
deferred compensation, employee or retiree medical or life insurance,
severance benefits or any other benefit covering any employee or former
employee and which is administered under any Foreign Benefit Law or
regulated by any Governmental Authority other than the United States of
America.
"Environmental Laws" means, collectively, the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as
amended, the Superfund Amendments and Reauthorization Act of 1986, the
Resource Conservation and Recovery Act, the Toxic Substances Control
Act, as amended, the Clean Air Act, as amended, the Clean Water Act, as
amended, any other "Superfund" or "Superlien" law or any other federal
or applicable state, local or foreign statute, law, ordinance, code,
rule, regulation, order or decree regulating, relating to, or imposing
liability or standards of conduct concerning, any hazardous, toxic or
dangerous waste, substance or material, as now or at any time hereafter
in effect.
"ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time, and any successor statute and all
rules and regulations promulgated thereunder.
"ERISA Affiliate", as applied to the Company, means any Person
or trade or business which is a member of a group which is under common
control with the Company, who, together with the Company, is treated as
a single employer within the meaning of Section 414(b), (c), (m) or (o)
of the Code.
"Euro" shall have the meaning therefor set forth in Section
6.09.
"Eurodollar Rate" means, for the Interest Period for any
Eurodollar Rate Loan, the rate of interest per annum determined
pursuant to the following formula:
Eurodollar Applicable Reference Rate Applicable
= ---------------------------------- +
Rate 1 - Applicable Reserve Requirement Margin
"Eurodollar Rate Loan" means a US Facility Loan for which the
rate of interest is determined by reference to the Eurodollar Rate.
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"Event of Default" means any of the occurrences set forth as
such in Section 11.01 hereof and the expiration of any applicable
notice or cure period.
"Facility" means any of the US Facility, UK Facility, Canadian
Facility and Australian Facility, as the context may require.
"Facility Credit Exposure" means, with respect to any Lender
and any Facility, the aggregate principal amount of all outstanding
Loans under such Facility owing to such Lender, to the extent no other
Lender has funded and paid for a Participation in such Loans, plus all
Participations funded and paid for by such Lender in all other Loans
under such Facility, and "Aggregate Facility Credit Exposure" means the
sum of all Facility Credit Exposures of all Lenders in a specific
Facility.
"Facility Fee" means that fee set forth in Sections 2.09,
3.09, 4.09 and 5.09, respectively, payable in US Dollars for each
separate Facility.
"Facility Participation Amount" means, with respect to a
Lender and a specific Facility, that amount of Participations of such
Lender in such Facility as defined in Sections 2.14, 3.13, 4.14 and
5.13, respectively.
"Facility Participation Payment Date" shall have the meaning
therefor set forth in Section 11.07.
"Federal Funds Effective Rate" means, for any day, the rate
per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%)
equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by
Federal funds brokers on such day, as published by the Federal Reserve
Bank of New York on the Business Day next succeeding such day; provided
that (a) if such day is not a Business Day, the Federal Funds Rate for
such day shall be such rate on such transactions on the next preceding
Business Day as so published on the next succeeding Business Day, and
(b) if no such rate is so published on such next succeeding Business
Day, the Federal Funds Rate for such day shall be the average rate
charged to the Applicable Facility Agent (in its individual capacity)
on such day on such transactions as determined by the Applicable
Facility Agent.
"Fiscal Year" means the 12 month period of the Company
commencing on March 1 of each calendar year and ending on the last day
of February of the immediately following calendar year.
"Fixed Rate Loan" means any or all, as the context may
require, of Eurodollar Rate Loans, Offshore Rate Loans and Canadian
Facility BA Rate Loans.
"Floating Rate Loan" means any one or more, as the context may
require, of US Facility Base Rate Loans, Canadian Facility Base Rate
Loans and Australian Facility Base Rate Loans.
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30
"Foreign Benefit Law" means any applicable statute, law,
ordinance, code, rule, regulation, order or decree of any foreign
nation or any province, state, territory, protectorate or other
political subdivision thereof regulating, relating to, or imposing
liability or standards of conduct concerning any pension, retirement,
health care, death, disability or other employee benefit plan.
"Four-Quarter Period" means a period of four full consecutive
fiscal quarters of the Company and its Subsidiaries, taken together as
one accounting period.
"French Francs" means the official currency of the Republic of
France and is subject to Section 6.09.
"French Franc Equivalent Amount" means, with respect to a
specified amount of British Pounds Sterling, the amount of French
Francs into which such amount of British Pounds Sterling would be
converted, based on the applicable Spot Rate of Exchange.
"French Franc Fronting Commitment" means, with respect to each
UK Facility Lender, the obligation of such Lender to make Loans in
French Francs to the UK Facility Borrowers on behalf of all the Lenders
up to an aggregate principal amount at any one time outstanding equal
to the product of such Lender's Applicable Fronting Percentage for the
UK Facility times the Total French Franc Commitment, as such fronting
commitment may be increased or decreased from time to time pursuant to
this Agreement.
"French Franc Outstandings" means, at any date of
determination, that portion of the UK Facility Outstandings
representing the Sterling Equivalent Amount of the aggregate principal
amount of all UK Facility Loans outstanding in French Francs under the
UK Facility French Franc Tranche.
"Funding Bank" means, with respect to the UK Facility, any
banking institution located within France that is approved by the UK
Facility Agent and is capable of making UK Facility Advances in French
Francs to the UK Facility Borrowers.
"Further Taxes" means any and all present or future taxes,
levies, assessments, imposts, duties, deductions, fees, withholdings or
similar charges (including, without limitation, net income taxes and
franchise taxes), and all liabilities with respect thereto, imposed by
any jurisdiction on account of amounts payable or paid pursuant to
Section 6.06.
"GAAP" or "Generally Accepted Accounting Principles" means
those generally accepted principles of accounting set forth in
pronouncements of the Financial Accounting Standards Board, the
Accounting Principles Board or the American Institute of Certified
Public Accountants or which have other substantial authoritative
support and are applicable in the circumstances as of the date of a
report, as such principles are from time to time supplemented and
amended, subject to compliance at all times with Section 1.02 hereof.
"Global Agent" shall have the meaning therefor set forth in
the introduction hereto.
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31
"Governmental Authority" means any federal, state, municipal,
national or other governmental department, commission, board, bureau,
court, agency or instrumentality or political subdivision thereof or
any entity or officer exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to any
government or any court, in each case whether associated with a state
of the United States, the United States, or a foreign entity or
government.
"Guarantor" means the Company in its capacity as a party to
the Guaranty.
"Guaranty" means the unconditional Guaranty Agreement in favor
of the Lenders in substantially the form attached hereto as Exhibit E
delivered to the Global Agent in accordance with Article VII hereof
pursuant to which the Guarantor guarantees the payment and performance
of all Obligations to the Lenders as more specifically set forth in
such Guaranty.
"Hazardous Material" means and includes any hazardous, toxic
or dangerous waste, substance or material, the generation, handling,
storage, disposal, treatment or emission of which is subject to any
Environmental Law in effect on any date.
"Hedging Obligations" means any and all obligations of the
Company and its Subsidiaries, whether absolute or contingent and
howsoever and whensoever created, arising, evidenced or acquired
(including all renewals, extensions and modifications thereof and
substitutions therefor), under (a) any and all agreements, devices or
arrangements designed to protect at least one of the parties thereto
from the fluctuations of interest rates, exchange rates or forward
rates applicable to such party's assets, liabilities or exchange
transactions, including, but not limited to, dollar-denominated or
cross-currency interest rate exchange agreements, forward currency
exchange agreements, interest rate cap or collar protection agreements,
forward rate currency or interest rate options, puts, warrants and
those commonly known as interest rate "swap" agreements; and (b) any
and all cancellations, buybacks, reversals, terminations or assignments
of any of the foregoing.
"Indebtedness" means, with respect to any Person, all
Indebtedness for Money Borrowed of such Person, all indebtedness of
such Person for the acquisition of property, including the deferred
purchase price of such property, other than purchases of products and
merchandise in the ordinary course of business so long as payment
therefor is due within one year, indebtedness secured by any Lien on
the property of such Person whether or not such indebtedness is
assumed, all liability of such Person by way of endorsements (other
than for collection or deposit in the ordinary course of business); all
Contingent Obligations of such Person, including the undrawn face
amount of, and unpaid reimbursement obligations in respect of, all
letters of credit issued for the account of such Person, obligations
occurring under acceptance facilities and Hedging Obligations; all
Capital Leases of such Person, and other items which in accordance with
Generally Accepted Accounting Principles are classified as liabilities
on a balance sheet; provided that in no event shall the term
Indebtedness include capital stock, surplus and retained earnings,
minority interest in the common stock of Subsidiaries, lease
obligations (other than pursuant to Capital Leases), reserves for
deferred
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income taxes and investment credits, other deferred credits and
reserves, and deferred compensation obligations.
"Indebtedness for Money Borrowed" means, for any Person, (i)
all indebtedness, obligations and liabilities of such Person for money
borrowed which are evidenced by bonds, debentures, notes or other
similar instruments, and (ii) all Capital Leases which have been
capitalized in accordance with Generally Accepted Accounting
Principles; provided, however, the term "Indebtedness for Money
Borrowed" shall specifically exclude payroll indebtedness and trade
indebtedness incurred in the ordinary course of business (including
trade indebtedness through financial intermediaries) provided such
trade indebtedness has a maturity of less than one year.
"Interest Period" for each Fixed Rate Loan means a period
commencing on the date such Fixed Rate Loan is made, Continued or
Converted and each subsequent period commencing on the last day of the
immediately preceding Interest Period for such Fixed Rate Loan and
ending, at the Applicable Borrower's option, for any Fixed Rate Loan,
on the date one, two, three or six months thereafter as notified to the
Applicable Facility Agent in compliance with the provisions of such
Facility as set forth in Articles II, III, IV and V, respectively, by
an Authorized Representative of such Borrower prior to the beginning of
such Interest Period; provided, that,
(i) if the Authorized Representative of such Borrower
fails to notify the Applicable Facility Agent of the length of
an Interest Period in compliance with the provisions of such
Facility as set forth in Article II, Article III, Article IV
or Article V, respectively, the Fixed Rate Loan for which such
Interest Period was to be determined shall be deemed to be (A)
in the case of a US Facility Loan, Canadian Facility Loan or
Australian Facility Loan, an Applicable Base Rate Loan or (B)
in the case of a UK Facility Loan, an Offshore Rate Loan with
an Interest Period of one month, in each case as of the first
day thereof;
(ii) if an Interest Period would end on a day which
is not a Business Day, such Interest Period shall be extended
to the next Business Day (unless such extension would cause
the applicable Interest Period to end in the succeeding
calendar month, in which case such Interest Period shall end
on the next preceding Business Day);
(iii) there shall not be more than (A) ten (10)
Interest Periods in effect on any day in respect of US
Facility Loans, (B) ten (10) Interest Periods in effect on any
day in respect of UK Facility Loans, (C) ten (10) Interest
Periods in effect on any Canadian Facility Loans and (D) four
(4) Interest Periods in effect on any day in respect of
Australian Facility Loans;
(iv) any Interest Period which begins on the last
Business Day of a calendar month (or on a day for which there
is no numerically corresponding day in the calendar month at
the end of such Interest Period) shall end on the last
Business Day of a calendar month;
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(v) no Interest Period shall extend past the Total
Facility Termination Date, the US Facility Revolving Credit
Termination Date (for US Facility Loans under the US Facility
Revolving Credit Facility) or the Canadian Facility Renewable
Tranche Termination Date (for Canadian Facility Loans under
the Canadian Facility Renewable Tranche).
"Investment Grade Rating" means a rating of BBB or higher from
S&P and a rating of Baa2 or higher from Xxxxx'x.
"Lenders" shall have the meaning therefor set forth in the
introduction hereto.
"LIBOR" means, for any date of determination with respect to
any Interest Period for an Offshore Rate Loan made under the UK
Facility, (i) the rate per annum (rounded upward, if necessary, to the
nearest five decimal places) equal to the rate determined by the UK
Facility Agent to be the offered rate which appears on the page of the
Telerate Screen which displays an average British Bankers Association
Interest Settlement Rate (such page currently being page number 3740 or
3750) for deposits (for delivery on the first day of such period) with
a term equivalent to such period in the Applicable Currency, determined
as of approximately 11:00 A.M. (London, England time) on such date of
determination, or (ii) in the event the rate referenced in the
preceding clause (i) does not appear on such page or service or if such
page or service shall cease to be available, the rate per annum
(rounded upward, if necessary, to the nearest five decimal places)
equal to the rate determined by the UK Facility Agent to be the offered
rate on such other page or other service which displays an average
British Bankers Association Interest Settlement Rate for deposits (for
delivery on the first day of such period) with a term equivalent to
such period in the Applicable Currency, determined as of approximately
11:00 A.M. (London, England time) on such date of determination, or
(iii) in the event the rates referenced in the preceding clauses (i)
and (ii) are not available, the rate per annum equal to the offered
quotation rate (rounded upward, if necessary, to the nearest five
decimal places) to first class banks in the London interbank market by
the UK Facility Agent for deposits (for delivery on the first day of
the relevant period) in the Applicable Currency of amounts in Same Day
Funds comparable to the principal amount of the UK Facility Loan of
such UK Facility Agent for which LIBOR is then being determined with
maturities comparable to such period as of approximately 11:00 A.M.
(London, England time) on such date of determination.
"Lien" means any interest in property securing any obligation
owed to, or a claim by, a Person other than the owner of the property,
whether such interest is based on the common law, statute or contract,
and including but not limited to the lien or security interest arising
from a mortgage, encumbrance, pledge, security agreement, conditional
sale or trust receipt or a lease, consignment or bailment for security
purposes.
"Loan" or "Loans" means any of the Fixed Rate Loans or
Floating Rate Loans, as the context may require.
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"Loan Documents" means this Agreement, the Notes, the Guaranty
and all other instruments and documents heretofore or hereafter
executed or delivered to and in favor of any Lenders or any Agents in
connection with the Loans made under this Agreement, as the same may be
amended, modified or supplemented from time to time.
"Loan Parties" means, collectively, each Borrower and the
Guarantor.
"Material Adverse Effect" means a material adverse effect on
(i) the business, assets, operations, condition (financial or
otherwise) or prospects of the Company and its Subsidiaries on a
consolidated basis or (ii) the ability of any of the Loan Parties to
perform their obligations and pay all amounts due hereunder or (iii)
the ability of any Agent or any Lender to enforce any of their rights
or to collect any of the Outstandings then due and payable.
"Xxxxx'x" means Xxxxx'x Investors Services, Inc.
"Multiemployer Plan" means an employee pension benefit plan
covered by Title IV of ERISA and in respect of which the Company or any
Subsidiary is an "employer" as described in Section 4001(b) of ERISA,
which is also a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.
"National City Bank" means National City Bank, a national
banking association.
"NationsBank" means NationsBank, National Association, a
national banking association.
"New Zealand Bank Xxxx Reference Rate" means (i) for any date
of determination with respect to any Interest Period for an Offshore
Rate Loan made in New Zealand Dollars under the Australian Facility,
(a) the rate (expressed as a percentage yield per annum to maturity)
determined by the Australian Facility Agent to be the arithmetic mean
(rounded upwards, if necessary, to the nearest 0.01%) of the bid rates
on the page entitled "BKBM" (or such supplemental or other page of the
Reuters Monitor System for displaying quotations of New Zealand Bank
Bills) on the Reuters Monitor Money Rates Service at or about 10:00
A.M. (Sydney, Australia time) on the first day of such Interest Period
for bank accepted bills having a term equal to (or no more than two (2)
Business Days shorter or longer than) such Interest Period, or (b) if
(x) for any reason there is no average bid rate displayed on the
Reuters Monitor System screen page entitled BKBM for bank accepted
bills of that term or (y) the basis on which such rates are displayed
on the Reuters Monitor System screen page entitled BKBM is changed and
in the opinion of Australian Facility Agent those rates cease to
reflect the Australian Facility Lenders' cost of funding to the same
extent as at the date of this Agreement, then the rate (expressed as a
percentage yield per annum to maturity) determined by Australian
Facility Agent to be the average of the bid rates quoted to Australian
Facility Agent by three banks selected by Australian Facility Agent at
or about that time on that day for the purchase of bills accepted by
such banks having a face value amount equal to the principal amount of
such Australian Facility Loan and a term as described in clause (i)(a)
of
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this definition; provided that such buying rates must be for bills of
exchange which are accepted by a bank selected by Australian Facility
Agent and which have a term equivalent to the relevant Interest Period;
or (ii) for any date of determination for purposes of determining the
Australian Facility Base Rate for an Offshore Rate Loan made in New
Zealand Dollars under the Australian Facility, or in the event the New
Zealand Bank Xxxx Reference Rate cannot be determined as described in
clause (i) of this definition, the rate determined by Australian
Facility Agent to be the arithmetic mean (rounded upwards to the
nearest 1/16th of one percent) of the rates, as supplied to Australian
Facility Agent at its request, quoted by the Australian Facility
Lenders to leading banks in the New Zealand interbank market at or
about 10:00 A.M. (Sydney, Australia time) on such date for the offering
of overnight deposits in New Zealand Dollars.
"New Zealand Dollar Equivalent Amount" means, with respect to
a specified amount of Australian Dollars, the amount of New Zealand
Dollars into which such amount of Australian Dollars would be
converted, based on the applicable Spot Rate of Exchange.
"New Zealand Dollar Fronting Commitment" means, with respect
to each Australian Facility Lender, the obligation of such Lender to
make Loans in New Zealand Dollars to the Australian Facility Borrowers
on behalf of all the Lenders up to an aggregate principal amount at any
one time outstanding equal to the product of the Lender's Applicable
Fronting Percentage for the Australian Facility times the Total New
Zealand Dollar Commitment, as such fronting commitment may be increased
or decreased from time to time pursuant to this Agreement.
"New Zealand Dollar Outstandings" means, at any date of
determination, that portion of the Australian Facility Outstandings
representing the Australian Dollar Equivalent Amount of the aggregate
principal amount of all Australian Facility Loans outstanding in New
Zealand Dollars under the Australian Facility New Zealand Dollar
Tranche.
"New Zealand Dollars" or "NZ $" means the lawful currency of
New Zealand.
"Non-Australian Lender" shall have the meaning therefor set
forth in Section 6.06(i).
"Non-Canadian Lender" shall have the meaning therefor set
forth in Section 6.06(h).
"Notes" means, collectively, the US Facility Notes and any
promissory notes that may be issued by an Applicable Borrower and
delivered to an Applicable Lender in a Facility other than the US
Facility at the request of such Lender.
"Obligations" means the obligations, liabilities and
Indebtedness of the Borrowers with respect to (i) the principal and
interest on the Loans as evidenced by the Notes and on the records of
the Applicable Facility Agents, (ii) all liabilities of any Borrower to
any Lender or any affiliate of a Lender which arise under a Swap
Agreement, and (iii) the payment and performance of all other fees,
indemnities, expenses, obligations, liabilities and Indebtedness
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36
of the Borrowers to the Lenders or the Agents, under this Agreement,
under any one or more of the other Loan Documents or with respect to
the Loans.
"Offshore Currency" means any of British Pounds Sterling,
French Francs, Canadian Dollars, Australian Dollars and New Zealand
Dollars.
"Offshore Rate" means, for the Interest Period for any
Offshore Rate Loan, the rate of interest per annum determined pursuant
to the following formula:
Offshore Rate = Applicable Reference Rate + Applicable Margin
"Offshore Rate Loan" means a UK Facility Loan or Australian
Facility Loan for which the rate of interest is determined by reference
to the Offshore Rate.
"Operating Documents" means with respect to any corporation,
limited liability company, partnership, limited partnership, limited
liability partnership or other legally authorized incorporated or
unincorporated entity, the bylaws, operating agreement, partnership
agreement, limited partnership agreement or other applicable documents
relating to the operation, governance or management of such entity.
"Organizational Action" means with respect to any corporation,
limited liability company, partnership, limited partnership, limited
liability partnership or other legally authorized incorporated or
unincorporated entity, any corporate, organizational or partnership
action (including any required shareholder, member or partner action),
or other similar official action, as applicable, taken by such entity.
"Organizational Documents" means with respect to any
corporation, limited liability company, partnership, limited
partnership, limited liability partnership or other legally authorized
incorporated or unincorporated entity, the articles of incorporation,
certificate of incorporation, articles of organization, certificate of
limited partnership or other applicable organizational or charter
documents relating to the creation of such entity.
"Other Taxes" means any present or future stamp, court or
documentary taxes or any other excise or property taxes, charges or
similar levies which arise from any payment made hereunder or from the
execution, delivery, performance, enforcement or registration of, or
otherwise with respect to, this Agreement or any other Loan Documents.
"Outstandings" means, collectively, the US Facility
Outstandings, the UK Facility Outstandings, the Canadian Facility
Outstandings and the Australian Facility Outstandings, and individually
any of the foregoing as the context may require.
"Participation" means, with respect to any Facility, the
principal amount purchased and funded by each Lender in the Loans and
Outstandings under such Facility pursuant to and in accordance with the
terms of Sections 2.14, 3.13, 4.14, 5.13 and 11.07 and "Participate"
and "Participant" shall have correlative meanings.
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37
"PBGC" means the Pension Benefit Guaranty Corporation and any
successor thereto.
"Pension Plan" means any employee pension benefit plan within
the meaning of Section 3(2) of ERISA, other than a Multiemployer Plan,
which is subject to the provisions of Title IV of ERISA or Section 412
of the Code and which (i) is maintained for employees of the Company or
any of its ERISA Affiliates or is assumed by the Company or any of its
ERISA Affiliates in connection with any acquisition or (ii) has at any
time been maintained for the employees of the Company or any current or
former ERISA Affiliate.
"Permitted Acquisition" means the acquisition by the Company
or a Subsidiary of a controlling equity interest in or all or
substantially all of the assets of any Person, which satisfies each of
the following: (i) such Person is in the same or similar line or lines
of business as that engaged in by the Company and its Subsidiaries; and
(ii) no Default or Event of Default has occurred and is continuing at
the time of, or is created or results from, such transaction.
"Person" means an individual, limited liability company,
partnership, corporation, trust, unincorporated organization,
association, joint venture or other entity or a government or agency or
political subdivision thereof.
"Principal Office" means, as the context may require, (i) the
principal office of the US Facility Agent located at 0000 Xxxx Xxxxx
Xxxxxx, Xxxxxxxxx Xxxx 00000, (ii) the principal office of the UK
Facility Agent located at New Xxxxx Xxxxxx Xxxxx, 00 Xxx Xxxxx Street,
London EC2M 1NH England, (iii) the principal office of the Canadian
Facility Agent located at Bank of America Canada, Toronto Corporate
Services Xxxxxx 0000, 000 Xxxxx Xxxxxx Xxxx, 00xx Xxxxx, Xxxxxxx,
Xxxxxxx X0X 312 Canada, Attn: Xxxxxx Xxx and (iv) the principal office
of the Australian Facility Agent located at BA Asia Ltd., Devon House,
979 King's Road, 10th Floor, Quarry Bay, Hong Kong, Attn: Xxxxx Xxx, or
such other office and address as any such Facility Agent may from time
to time designate.
"Prior Australian Facility" shall have the meaning therefor
set forth in the introduction hereto.
"Prior Canadian Facility" shall have the meaning therefor set
forth in the introduction hereto.
"Prior Facilities" shall have the meaning therefor set forth
in the introduction hereto.
"Prior French Facility" shall have the meaning therefor set
forth in the introduction hereto.
"Prior Irish Facility" shall have the meaning therefor set
forth in the introduction hereto.
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38
"Prior UK Facility" shall have the meaning therefor set forth
in the introduction hereto.
"Prior US Facility" shall have the meaning therefor set forth
in the introduction hereto.
"Rated Debt" shall have the meaning therefor set forth in the
definition of "Applicable Margin."
"Register" shall have the meaning therefor set forth in
Section 13.01(b).
"Regulation D" means Regulation D of the Board as the same may
be amended or supplemented from time to time.
"Regulatory Change" means any change effective after the
Closing Date in United States federal or state laws or regulations
(including Regulation D and capital adequacy regulations), English laws
or regulations, Canadian federal or provincial laws or regulations,
Australian federal or provincial laws or regulations, or other foreign
laws or regulations or the adoption or making after such date of any
interpretations, directives or requests applying to a class of banks,
which includes any of the Lenders, under any United States federal or
state, English, Canadian federal or provincial, Australian federal or
provincial or other foreign laws or regulations (whether or not having
the force of law) by any court or governmental or monetary authority
charged with the interpretation or administration thereof or compliance
by any Lender with any request or directive regarding capital adequacy,
whether or not having the force of law, whether or not failure to
comply therewith would be unlawful and whether or not published or
proposed prior to the Closing Date.
"Required Fronting Lenders" shall have the meaning therefor
set forth in Section 11.07(a).
"Required Lenders" means, as of any date, (i) at all times
other than following the occurrence and during the continuation of an
Event of Default, (A) with respect to the Total Facilities, Lenders on
such date, without distinction or preference as between any of the
Facilities, having Aggregate Commitments under the Total Facilities
aggregating more than 50% of the Total Commitment on such date, and (B)
with respect to any specific Facility, Lenders on such date having an
Applicable Facility Commitment aggregating more than 50% of the
Applicable Total Facility Commitment on such date and (ii) at all times
following the occurrence and during the continuation of an Event of
Default, (A) with respect to the Total Facilities, Lenders on such
date, without distinction or preference as between any of the
Facilities, having Credit Exposures aggregating more than 50% of the
Aggregate Credit Exposure on such date, and (B) with respect to any
specific Facility, Lenders on such date having Facility Credit
Exposures aggregating more than 50% of the Aggregate Facility Credit
Exposure on such date. For purposes of determining the vote of the
Required Lenders above, (i) Bank of America shall be deemed to have the
Aggregate Commitment, Applicable Facility Commitments, Credit Exposure
and Facility Credit Exposure of XXXXX, XX Australia Limited and of each
branch of Bank of America designated as a Lender hereunder, (ii) Mellon
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39
Bank, N.A. shall be deemed to have the Aggregate Commitment, Applicable
Facility Commitments, Credit Exposure and Facility Credit Exposure of
Mellon Bank Canada and each branch of Mellon Bank, N.A. designated as a
Lender hereunder, and (iii) NBD Bank shall be deemed to have the
Aggregate Commitment, Applicable Facility Commitments, Credit Exposure
and Facility Credit Exposure of First Chicago NBD Bank, Canada, The
First National Bank of Chicago and each branch of NBD Bank designated
as a Lender hereunder.
"Restricted Lender" shall have the meaning therefor set forth
in Section 6.07.
"Same Day Funds" means (i) with respect to disbursements and
payments in US Dollars, immediately available funds, and (ii) with
respect to disbursements and payments in an Offshore Currency, same day
or other funds as may be determined by the Applicable Facility Agent to
be customary in the place of disbursement or payment for the settlement
of international banking transactions in such Offshore Currency.
"S&P" means Standard & Poor's Rating Group, a division of
XxXxxx-Xxxx Companies, Inc.
"Solvent" means, when used with respect to any Person, that at
the time of determination:
(i) the fair value of its assets (both at fair
valuation and at present fair saleable value on an orderly
basis) is in excess of the total amount of its liabilities,
including, without limitation, Contingent Obligations; and
(ii) it is then able and expects to be able to pay
its debts as they mature; and
(iii) it has capital sufficient to carry on its
business as conducted and as proposed to be conducted.
"Spot Rate of Exchange" means (i) in determining the Sterling
Equivalent Amount of a specified amount of French Francs as of any date
under the UK Facility, the spot exchange rate determined by the UK
Facility Agent in accordance with its usual procedures for the purchase
by the UK Facility Agent of British Pounds Sterling with French Francs
at approximately 11:00 A.M. (London, England time) on the Business Day
that is three (3) Business Days prior to such date; (ii) in determining
the Australian Dollar Equivalent Amount of a specified amount of New
Zealand Dollars as of any date under the Australian Facility, the rate
quoted by the Australian Facility Agent in accordance with its
customary procedures as the spot rate for the purchase by such
Australian Facility Agent of Australian Dollars with New Zealand
Dollars at approximately 11:00 A.M. (Sydney, Australia time), on such
date as of which the foreign computation is made, for delivery two (2)
Business Days later; (iii) in determining the French Franc Equivalent
Amount of a specified amount of British Pounds Sterling as of any date
under the UK Facility, the spot exchange rate determined by the UK
Facility
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40
Agent in accordance with its usual procedures for the purchase by the
UK Facility Agent of French Francs with British Pounds Sterling at
approximately 11:00 A.M. (London, England time) on the Business Day
that is three (3) Business Days prior to such date; (iv) in determining
the New Zealand Dollar Equivalent Amount of a specified amount of
Australian Dollars as of any date under the Australian Facility, the
rate quoted by the Australian Facility Agent in accordance with its
customary procedures as the spot rate for the purchase by such
Australian Facility Agent of New Zealand Dollars with Australian
Dollars at approximately 11:00 A.M. (Sydney, Australia time), on such
date as of which the foreign computation is made, for delivery two (2)
Business Days later; and (v) in determining the US Dollar Equivalent
Amount of a specified amount of any Applicable Currency as of any date,
the spot rate of exchange determined by the Global Agent in accordance
with its usual procedures for the purchase by the Global Agent of US
Dollars with such Applicable Currency at approximately 11:00 A.M.
(Charlotte, North Carolina time) on the Business Day that is two (2)
Business Days prior to such date.
"Sterling Equivalent Amount" means, with respect to a
specified amount of French Francs, the amount of British Pounds
Sterling into which such amount of French Francs would be converted,
based on the applicable Spot Rate of Exchange.
"Subsidiary" means any Person in which more than 50% of its
outstanding voting stock or rights or more than 50% of all equity
interest is owned directly or indirectly by the Company.
"Substitute Base Rate Loans" shall have the meaning therefor
set forth in Section 6.04.
"Swap Agreement" means one or more agreements with respect to
Indebtedness evidenced by the Notes or Obligations under any Facility
between one or more Borrowers and one or more Lenders, on terms
mutually acceptable to such Borrower or Borrowers and such Lender or
Lenders, which agreements create Hedging Obligations.
"Taxes" means any and all present or future taxes, levies,
assessments, imposts, duties, deductions, fees, withholdings or similar
charges, and all liabilities with respect thereto, excluding, in the
case of each Lender and each Agent, respectively, taxes imposed on or
measured by its net income by the jurisdiction (or any political
subdivision thereof) under the laws of which such Lender or such Agent,
as the case may be, is organized or maintains a lending office.
"Termination Event" means: (i) a "Reportable Event" described
in Section 4043 of ERISA and the regulations issued thereunder (unless
the notice requirement has been waived by applicable regulation); or
(ii) the withdrawal of the Company or any ERISA Affiliate from a
Pension Plan during a plan year in which it was a "substantial
employer" as defined in Section 4001(a)(2) of ERISA or was deemed such
under Section 4062(e) of ERISA; or (iii) the termination of a Pension
Plan, the filing of a notice of intent to terminate a Pension Plan or
the treatment of a Pension Plan amendment as a termination under
Section 4041 of ERISA; or (iv) the institution of proceedings to
terminate a Pension Plan by the PBGC; or (v) any
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41
other event or condition which would constitute grounds under Section
4042(a) of ERISA for the termination of, or the appointment of a
trustee to administer, any Pension Plan; or (vi) the partial or
complete withdrawal of the Company or any ERISA Affiliate from a
Multiemployer Plan; or (vii) the imposition of a Lien pursuant to
Section 412 of the Code or Section 302 of ERISA; or (viii) any event or
condition which results in the reorganization or insolvency of a
Multiemployer Plan under Section 4241 or Section 4245 of ERISA,
respectively; or (ix) any event or condition which results in the
termination of a Multiemployer Plan under Section 4041A of ERISA or the
institution by the PBGC of proceedings to terminate a Multiemployer
Plan under Section 4042 of ERISA; or (x) any event or condition with
respect to any Employee Benefit Plan which is regulated by any Foreign
Benefit Law that results in such Employee Benefit Plan's termination or
the revocation of the Employee Benefit Plan's authority to operate
under the applicable Foreign Benefit Law.
"Total Australian Dollar Commitment" means, as of any date of
determination thereof, an amount equal to the Total Australian Facility
Commitment (as the same may be reduced from time to time pursuant to
this Agreement) less the New Zealand Dollar Outstandings as of such
date.
"Total Australian Facility Commitment" means an amount equal
to AUS $125,000,000 inclusive of the Total New Zealand Dollar
Commitment, each as reduced from time to time in accordance with
Section 5.07.
"Total British Pounds Sterling Commitment" means, as of any
date of determination thereof, an amount equal to the Total UK Facility
Commitment (as the same may be reduced from time to time pursuant to
this Agreement) less the French Franc Outstandings as of such date.
"Total Canadian Facility Commitment" means an amount equal to
CAN $150,000,000, as reduced from time to time in accordance with
Section 4.07, Section 4.12 or Section 4.13.
"Total Commitment" means, at any time of determination, the
Total US Facility Commitment, plus the aggregate US Dollar Equivalent
Amount of each of the Total UK Facility Commitment, the Total Canadian
Facility Commitment and the Total Australian Facility Commitment.
"Total Facilities" means, in the aggregate, all of the US
Facility, the UK Facility, the Canadian Facility and the Australian
Facility.
"Total Facility Termination Date" means the earliest to occur
of (i) August 7, 2003, or (ii) the date of termination of the Lenders'
obligations pursuant to Section 11.01 upon the occurrence of an Event
of Default, or (iii) such date as the Borrowers may voluntarily
permanently terminate all the Total Facilities by payment in full of
all Obligations.
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42
"Total French Franc Commitment" means, at any date of
determination, an amount equal to the French Franc Equivalent Amount of
pound 22,000,000 (as reduced from time to time in accordance with
Section 3.07) as at such date.
"Total New Zealand Dollar Commitment" means, at any date of
determination, an amount equal to the New Zealand Dollar Equivalent
Amount of AUS $12,500,000 (as reduced from time to time in accordance
with Section 5.07) as at such date.
"Total UK Facility Commitment" means an amount equal to pound
55,000,000 inclusive of the Total French Franc Commitment, each as
reduced from time to time in accordance with Section 3.07.
"Total US Facility Commitment" means an amount equal to US
$450,000,000, as reduced from time to time in accordance with Section
2.07, Section 2.12 or Section 2.13.
"Total US Facility Revolving Credit Commitment" means, as of
any date of determination thereof, an amount equal to the Total US
Facility Commitment (as the same may be reduced from time to time
pursuant to this Agreement) less the amount of US Facility Term Loan
Outstandings as of such date.
"Type" means any type of Loan (i.e., an Applicable Base Rate
Loan, Eurodollar Rate Loan, Offshore Rate Loan, Canadian Facility BA
Rate Loan or, for purposes of Article VI only, a UK Facility
Alternative Rate Loan)).
"UK Facility" means the facility described in Article III
hereof providing for Loans to the UK Facility Borrowers by the UK
Facility Lenders in the aggregate principal amount of the Total UK
Facility Commitment.
"UK Facility Advance" means a borrowing under the UK Facility
consisting of the aggregate principal amount of an Offshore Rate Loan.
"UK Facility Agent" shall have the meaning therefor set forth
in the introduction hereto.
"UK Facility Alternative Rate" means such rate of interest per
annum determined by the UK Facility Agent and the UK Facility Borrowers
as an alternative basis (i) for determining the rates of interest from
time to time applicable to Loans under the UK Facility and/or (ii) upon
which Loans may be maintained under the UK Facility, in each case
pursuant to Section 6.02 or Section 6.04, which rate of interest shall
be determined within thirty (30) days of notification to the UK
Facility Borrowers in accordance with the provisions of Section 6.02 or
Section 6.04, as applicable. If no such alternative basis is agreed
upon by the UK Facility Agent and the UK Facility Borrowers, each UK
Facility Lender shall certify a reasonable alternative basis for
maintaining Loans under the UK Facility that reflects such UK Facility
Lender's cost of funds (a "substitute basis"), which substitute basis
may (without limitation) include alternative Interest Periods,
alternative currencies or alternative rates of
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43
interest but shall include a margin above the cost of funds including
the UK Facility Mandatory Cost, if any, to such UK Facility Lender and
the Applicable Margin.
"UK Facility Alternative Rate Loan" means a Loan for which the
rate of interest is determined by reference to the UK Facility
Alternative Rate, solely for purposes of Article VI.
"UK Facility Borrowers" shall have the meaning therefor set
forth in the introduction hereto.
"UK Facility Commitment" means, with respect to any Lender,
such Lender's Applicable Facility Commitment for the UK Facility.
"UK Facility French Franc Tranche" means the facility
described in Article III hereof providing for Loans funded in French
Francs to the UK Facility Borrowers by the UK Facility Lenders in an
aggregate principal amount not to exceed the Total French Franc
Commitment.
"UK Facility Fronting Commitment" means, with respect to each
UK Facility Lender, the obligation of such Lender to make Loans to the
UK Facility Borrowers on behalf of all the Lenders up to an aggregate
principal amount at any one time outstanding equal to the product of
such Lender's Applicable Fronting Percentage for the UK Facility times
the Total UK Facility Commitment, as such fronting commitment may be
increased or decreased from time to time pursuant to this Agreement,
and shall consist of such Lender's British Pounds Sterling Fronting
Commitment plus its French Franc Fronting Commitment.
"UK Facility Lenders" means those Lenders identified in the
introduction hereto with respect to their making UK Facility Loans on
behalf of all the Lenders.
"UK Facility Loans" means Offshore Rate Loans made by the UK
Facility Lenders pursuant to Section 3.01 hereof.
"UK Facility Mandatory Cost" means a rate per annum determined
by the UK Reference Bank and notified thereby to the UK Facility Agent
calculated in accordance with the following formula:
BY + S(Y-Z) + (F x 0.01)
UK Facility Mandatory Cost per annum = ------------------------
100 - (B+S)
where on the day of application of the formula:
B = The percentage of the UK Reference Bank's Eligible
Liabilities (in excess of any stated minimum) by
reference to which the Bank of England and/or the
Financial Services Authority requires the UK
Reference Bank to hold on a non-interest bearing
deposit account in accordance with its cash ratio
requirements;
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44
Y = The percentage rate per annum at which sterling
deposits are offered by the UK Reference Bank to
leading banks in the London interbank market at or
about 11:00 A.M. (London, England time) on that day
for the relevant period;
F = The rate of charge payable by the UK Reference Bank
to the Financial Services Authority under paragraph
2.02 or 2.03 (as appropriate) of the Fees Regulations
(but where for this purpose the figure at paragraph
2.02b or 2.03b shall be deemed to be zero) and
expressed in British Pounds Sterling per pound
1,000,000 of the Fee Base of the UK Reference Bank;
S = The percentage of the UK Reference Bank's Eligible
Liabilities which the Bank of England (or other
relevant United Kingdom governmental authority or
agency) requires the UK Reference Bank to place as a
Special Deposit; and
Z = The interest rate per annum payable by the Bank of
England to the UK Reference Bank on Special Deposits.
(a) For the purposes of this definition:
(i) "Eligible Liabilities" and "Special Deposits"
shall have the meanings given to them at the time of
application of the above formula under or pursuant to the Bank
of Xxxxxxx Xxx 0000 or by the Bank of England (as
appropriate);
(ii) "Fee Base" has the meaning given to it in the
Fees Regulations;
(iii) "Fees Regulations" means:
(A) prior to March 31, 1999 the Banking
Supervision (Fees) Regulations
1998; and
(B) on or after March 31, 1999, any
regulations governing the payment
of fees for banking supervision;
(b) In the application of the above formula, B, Y, S, and Z
are included in the formula as figures and not as percentages, e.g. if
B = 0.5% and Y = 15%, BY is calculated as 0.5 x 15 and not as 0.5% x
15%. A negative result obtained from subtracting Z from Y is to be
treated as zero.
(c) (i) The above formula is applied on the first day of each
relevant period comprised in the relevant Interest Period.
(ii) Each rate calculated in accordance with the above
formula is, if necessary, rounded upward to four decimal places.
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45
(d) The UK Facility Agent may, from time to time, after
consultation with the Company and the Lenders, determine and notify to
the Company and the Lenders any amendments or variations which are
required to be made to the formula set out above in order to comply
with any requirements from time to time imposed by any applicable
regulatory authority in relation to UK Facility Advances denominated in
British Pounds Sterling (including, without limitation, any
requirements relating to British Pounds Sterling primary liquidity) and
any such determination shall, in the absence of manifest error, be
conclusive and binding on all the Borrowers, the Lenders, the Agents
and the Company.
"UK Facility Maximum Amount" means, with respect to each UK
Facility Borrower, 95% of the amount by which the fair value of its
assets (determined at the lesser of fair valuation and present fair
saleable value on an orderly basis) is in excess of the total amount of
its liabilities, including without limitation Contingent Obligations,
as of the Closing Date; provided, however, that if the calculation of
UK Facility Maximum Amount in the manner provided above as of the date
payment is required of such UK Facility Borrower pursuant to Article
III would result in a greater positive number, then the UK Facility
Maximum Amount shall be such greater positive number.
"UK Facility Outstandings" means, at any date of
determination, the British Pounds Sterling Outstandings plus the French
Franc Outstandings.
"UK Overnight Rate" means, for any day, the rate of interest
per annum at which overnight deposits in the Applicable Currency, in an
amount approximately equal to the amount with respect to which such
date is being determined, would be offered for such day by the UK
Facility Agents to major banks in the London or other applicable
offshore interbank market. The UK Overnight Rate for any day which is
not a Business Day shall be the UK Overnight Rate for the preceding
Business Day.
"UK Qualifying Lender" shall have the meaning therefor set
forth in Section 6.06(g).
"UK Reference Bank" means the UK Facility Lender that from
time to time is the UK Facility Agent hereunder.
"Unutilized Canadian Facility Renewable Tranche Commitment"
means, at any date of determination, the difference of the Canadian
Facility Renewable Tranche Commitment at such date less the Canadian
Facility Renewable Tranche Outstandings at such date.
"Unutilized Total US Facility Commitment" means, at any date
of determination, the difference of the Total US Facility Commitment at
such date less the US Facility Outstandings at such date.
"US Dollar Equivalent Amount" means, with respect to a
specified amount of any Applicable Currency, the amount of US Dollars
into which such amount of such Applicable Currency would be converted,
based on the applicable Spot Rate of Exchange.
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46
"US Dollars" or "US $" means dollars constituting legal tender
for the payment of public and private debts in the United States of
America.
"US Facility" means the facility described in Article II
hereof providing for Loans to the US Facility Borrower by the US
Facility Lenders in the aggregate principal amount of the Total US
Facility Commitment.
"US Facility Advance" means a borrowing under the US Facility
Revolving Credit Facility consisting of the aggregate principal amount
of a US Facility Base Rate Loan or Eurodollar Rate Loan, as the case
may be.
"US Facility Agent" shall have the meaning therefor set forth
in the introduction hereto.
"US Facility Base Rate" means, for any day, the rate per annum
equal to the higher of (i) the Federal Funds Effective Rate for such
day plus one-half of one percent (.5%) and (ii) the US Prime Rate for
such day. Any change in the US Facility Base Rate resulting from a
change in the US Prime Rate or the Federal Funds Effective Rate shall
become effective on the effective date of such change in the US Prime
Rate or the Federal Funds Effective Rate.
"US Facility Base Rate Loan" means a Loan for which the rate
of interest is determined by reference to the US Facility Base Rate.
"US Facility Borrower" shall have the meaning therefor set
forth in the introduction hereto.
"US Facility Commitment" means, with respect to any Lender,
such Lender's Applicable Facility Commitment for the US Facility.
"US Facility Fronting Commitment" means, with respect to each
US Facility Lender, the obligation of such Lender to make or continue
Loans to the US Facility Borrower on behalf of all the Lenders up to an
aggregate principal amount at any one time outstanding equal to the
product of such Lender's Applicable Fronting Percentage for the US
Facility times the Total US Facility Commitment, as such fronting
commitment may be increased or decreased from time to time pursuant to
this Agreement.
"US Facility Lenders" means those Lenders identified in the
introduction hereto with respect to their making US Facility Loans on
behalf of all the Lenders.
"US Facility Loans" means Loans, both US Facility Base Rate
Loans and Eurodollar Rate Loans, made by the US Facility Lenders
pursuant to Article II hereof.
"US Facility Notes" means the promissory notes of the US
Facility Borrower executed and delivered to the US Facility Lenders as
provided in Section 2.04 hereof in substantially the form attached as
Exhibit E, with appropriate insertions as to amounts, dates and names
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47
of US Facility Lenders, which US Facility Notes shall be delivered to
evidence the US Facility Loans provided for herein.
"US Facility Outstandings" means, at any date of
determination, the aggregate principal amount of all US Facility Loans
then outstanding.
"US Facility Revolving Credit Extension Date" means August 5,
1999 and each date thereafter, if any, to which the US Facility
Revolving Credit Termination Date has been extended pursuant to Section
2.12 hereof, but in no event later than August 7, 2002.
"US Facility Revolving Credit Facility" means that portion of
the US Facility described in Section 2.01 hereof providing for US
Facility Loans to the US Facility Borrower by the US Facility Lenders
in the aggregate principal amount of the Total US Facility Revolving
Credit Commitment.
"US Facility Revolving Credit Outstandings" means, at any date
of determination, that portion of the US Facility Outstandings
representing the aggregate principal amount of all US Facility Loans
outstanding under the US Facility Revolving Credit Facility.
"US Facility Revolving Credit Termination Date" means the
earlier of (i) August 5, 1999, or such later date with respect to the
Unutilized Total US Facility Commitment as the US Facility Borrower and
the Lenders shall agree in writing pursuant to Section 2.12 hereof, or
(ii) the Total Facility Termination Date.
"US Facility Term Loan" shall have the meaning therefor set
forth in Section 2.13.
"US Facility Term Loan Facility" means the facility described
in Section 2.13 hereof providing for the conversion of US Facility
Revolving Credit Outstandings on each US Facility Extension Date to US
Facility Term Loans.
"US Facility Term Loan Outstandings" means, at any date of
determination, that portion of the US Facility Outstandings
representing the aggregate principal amount of all US Facility Loans
outstanding under the US Term Loan Facility.
"US Prime Rate" means the per annum rate of interest
established from time to time by the US Facility Agent as its prime
rate, which rate may not be lowest rate charged by the US Facility
Agent to its customers.
"Voting Stock" means shares of capital stock issued by a
corporation, or equivalent interests in any other Person, the holders
of which are ordinarily, in the absence of contingencies, entitled to
vote for the election of directors (or persons performing similar
functions) of such Person, even if the right so to vote has been
suspended by the happening of such a contingency.
"Year 2000 Compliant" shall have the meaning therefor set
forth in Section 8.02(n).
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"Year 2000 Problem" shall have the meaning therefor set forth
in Section 8.02(n).
1.02 Rules of Interpretation.
(a) All accounting terms not specifically defined herein shall have the
meanings assigned to such terms and shall be interpreted in accordance with
Generally Accepted Accounting Principles applied on a Consistent Basis.
(b) The headings, subheadings and table of contents used herein or in
any other Loan Document are solely for convenience of reference and shall not
constitute a part of any such document or affect the meaning, construction or
effect of any provision thereof.
(c) Except as otherwise expressly provided, references herein to
articles, sections, paragraphs, clauses, annexes, appendices, exhibits and
schedules are references to articles, sections, paragraphs, clauses, annexes,
appendices, exhibits and schedules in or to this Agreement.
(d) All definitions set forth herein or in any other Loan Document
shall apply to the singular as well as the plural form of such defined term, and
all references to the masculine gender shall include reference to the feminine
or neuter gender, and vice versa, as the context may require.
(e) When used herein or in any other Loan Document, words such as
"hereunder", "hereto", "hereof" and "herein" and other words of like import
shall, unless the context clearly indicates to the contrary, refer to the whole
of the applicable document and not to any particular article, section,
subsection, paragraph or clause thereof.
(f) References to "including" means including without limiting the
generality of any description preceding such term.
(g) Any reference to an officer of any Borrower or any other Person by
reference to the title of such officer shall be deemed to refer to each other
officer of such Person, however titled, exercising the same or substantially
similar functions.
(h) All references to any agreement or document as amended, modified or
supplemented, or words of similar effect, shall mean such document or agreement,
as the case may be, as amended, modified or supplemented from time to time only
as and to the extent permitted therein and in the Loan Documents.
(i) In the event that pursuant to Section 6.09 hereof any amount is
borrowed and repaid in the Euro rather than any particular Applicable Currency,
then references to such Applicable Currency and all definitions related to or
derived from a reference to such Applicable Currency shall be deemed to be, or
be related to or derived from, references to the Euro, in the sole discretion of
the Applicable Facility Agent, shall be deemed modified to the extent necessary
to effect the intent of this Agreement with respect to borrowings in such
Applicable Currency.
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ARTICLE II
The US Facility
2.01 Advances
(a) Commitment. Subject to the terms and conditions of this Agreement,
each US Facility Lender severally agrees to make, on behalf of all the Lenders,
US Facility Advances in US Dollars to the US Facility Borrower from time to time
from the Closing Date until the US Facility Revolving Credit Termination Date,
on a pro rata basis as to the total borrowing requested by the US Facility
Borrower on any day determined by such US Facility Lender's Applicable Fronting
Percentage for the US Facility, up to but not exceeding the US Facility Fronting
Commitment of such US Facility Lender, and each Lender shall have a
Participation in each such US Facility Advance pursuant to Section 2.14 equal in
amount to its Applicable Commitment Percentage times such US Facility Advance;
provided, however, that the US Facility Lenders will not be required and shall
have no obligation to make any US Facility Advance (i) so long as a Default or
an Event of Default has occurred and is continuing or (ii) if the Lenders have
accelerated the maturity of the Obligations as a result of an Event of Default;
provided further, however, that immediately after giving effect to each such US
Facility Advance, (x) the US Facility Outstandings shall not exceed the Total US
Facility Commitment and (y) the US Facility Revolving Credit Outstandings shall
not exceed the Total US Facility Revolving Credit Commitment. Within such
limits, the US Facility Borrower may borrow, repay and reborrow US Facility
Loans hereunder, on a Business Day, from the Closing Date until, but (as to
borrowings and reborrowings) not including, the US Facility Revolving Credit
Termination Date; provided, however, that (A) no Eurodollar Rate Loan shall be
made which has an Interest Period that extends beyond the US Facility Revolving
Credit Termination Date and (B) each Eurodollar Rate Loan may be repaid only on
the last day of the Interest Period with respect thereto, unless such prepayment
is accompanied by the additional payment, if any, due under Section 6.05. The US
Facility Borrower agrees that if at any time the US Facility Outstandings shall
exceed the Total US Facility Commitment or the US Facility Revolving Credit
Outstandings shall exceed the Total US Facility Revolving Credit Commitment, the
US Facility Borrower shall immediately repay a principal amount of the
outstanding US Facility Loans such that, as a result of such reduction, the
Total US Facility Commitment shall equal or exceed the US Facility Outstandings
and the Total US Facility Revolving Credit Commitment shall equal or exceed the
US Facility Revolving Credit Outstandings.
(b) Amounts, Advances and Rate Selection.
(i) The principal amount outstanding on any US Facility Loan
shall be recorded in the US Facility Agent's records in US Dollars,
based on the amount of any US Facility Advance as reduced from time to
time by the amount of any principal payments with respect to such US
Facility Loan. In the event a US Facility Loan is Continued or
Converted pursuant to Section 2.08, such election shall be treated as a
US Facility Advance for purposes of this Section 2.01. There shall be
no more than ten (10) Eurodollar Rate Loans outstanding at any one time
under the US Facility.
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(ii) Each US Facility Loan and each Continuation and
Conversion under Section 2.08 shall be (A) in the case of Eurodollar
Rate Loans, in an amount not less than US $10,000,000 and if greater in
integral multiples of US $1,000,000, and (B) in the case of US Facility
Base Rate Loans in an amount not less than US $5,000,000, and, if
greater, an integral multiple of US $1,000,000.
(iii) For each US Facility Advance an Authorized
Representative shall give the US Facility Agent (A) at least three (3)
Business Days' irrevocable telefacsimile notice prior to 10:00 A.M.
(New York, New York time) of each Eurodollar Rate Loan representing a
borrowing or Continuation or Conversion hereunder and (B) irrevocable
telefacsimile notice of each US Facility Base Rate Loan representing a
borrowing or Continuation or Conversion hereunder prior to 10:00 A.M.
(New York, New York time) on the day of such proposed US Facility Base
Rate Loan. Each such notice shall be in the form of a Borrowing Notice
in the form attached hereto as Exhibit D-1, which shall be effective
upon receipt by the US Facility Agent, and shall specify the Type of
Loan, amount of the US Facility Advance to be made, the date of
borrowing and the Interest Period (if a Eurodollar Rate Loan) to be
used in the computation of interest. Neither the US Facility Agent nor
any US Facility Lender shall incur any liability to the US Facility
Borrower in acting upon any notice referred to above which the US
Facility Agent believes in good faith to have been given by an
Authorized Representative of the US Facility Borrower or for otherwise
acting in good faith, and upon funding of US Facility Loans by any US
Facility Lender in accordance with this Agreement pursuant to any such
notice, the US Facility Borrower shall have effected US Facility Loans
hereunder. A Borrowing Notice for a Eurodollar Rate Loan shall be
irrevocable, and the US Facility Borrower shall be bound to make a
borrowing in accordance therewith, unless such US Facility Borrower
pays to the US Facility Lenders such amounts as may be due under
Section 6.05 for failure of a borrowing of a Eurodollar Rate Loan to
occur on the date specified therefor in the related Borrowing Notice.
The duration of the initial Interest Period for each US Facility Loan
shall be as specified in the initial Borrowing Notice. The US Facility
Borrower shall have the option to elect the duration of any subsequent
Interest Periods and to Continue or Convert the US Facility Loans in
accordance with Section 2.08. If the US Facility Agent does not receive
a notice of election of the duration of an Interest Period or of the
Conversion of a Loan by the time prescribed hereby and by Section 2.08,
the US Facility Borrower shall be deemed to have elected to Convert
such Loan to or Continue such Loan as a US Facility Base Rate Loan
until the US Facility Borrower notifies the US Facility Agent in
accordance with Section 2.08.
(iv) Notice of receipt of each Borrowing Notice in respect of
US Facility Loans, together with the amount of each US Facility
Lender's portion of an Advance requested thereunder and the applicable
interest rate, shall be provided by the US Facility Agent to each US
Facility Lender by telefacsimile with reasonable promptness, but
(provided the US Facility Agent shall have received such notice by
10:00 A.M. (New York, New York time), not later than 12:00 noon (New
York, New York time) on the same day as the US Facility Agent's receipt
of such notice from the US Facility Borrower.
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(v) Each US Facility Lender shall, pursuant to the terms and
subject to the conditions of this Agreement, not later than 12:00 noon
(New York, New York time) on the date specified for such US Facility
Advance, make the amount of the US Facility Advance or Advances to be
made by it on such day available to the US Facility Borrower by
depositing or transferring the proceeds thereof in US Dollars and in
Same Day Funds to the US Facility Agent at its Principal Office. The
amount so received by the US Facility Agent shall, subject to the terms
of this Agreement, be made available to the US Facility Borrower by
deposit of the proceeds to an account of such US Facility Borrower
maintained at the Principal Office or otherwise as shall be directed in
the applicable Borrowing Notice.
2.02 Payment of Interest.
(a) The US Facility Borrower shall pay interest to the US Facility
Agent for the account of each US Facility Lender on the outstanding and unpaid
principal amount of each US Facility Loan made by such US Facility Lender for
the period commencing on the date of such US Facility Loan until such Loan shall
be paid, Continued or Converted, as the case may be, at the then applicable US
Facility Base Rate for US Facility Base Rate Loans or applicable Eurodollar Rate
for Eurodollar Rate Loans, such payments to be made in US Dollars; provided,
however, that if any Event of Default shall have occurred and be continuing, all
amounts outstanding hereunder shall bear interest thereafter at the Default
Rate.
(b) Interest on each US Facility Loan shall be computed on the basis of
a year of 360 days and calculated for the actual number of days elapsed.
Interest on each US Facility Loan shall be paid (i) quarterly in arrears on the
last Business Day of each fiscal quarter, commencing September 30, 1998, for
each US Facility Base Rate Loan, (ii) on the last day of the applicable Interest
Period for each Eurodollar Rate Loan and, if the Interest Period extends for
more than three months, also at intervals of three months after the first day of
the Interest Period and (iii) upon payment in full of the principal amount of
each such Loan. Interest on amounts not paid when due shall be payable on
demand.
2.03 Payment of Principal. Except as set forth in Section 2.13 with
respect to US Facility Term Loans, the principal amount of each US Facility Loan
shall be due and payable to the US Facility Agent for the benefit of each US
Facility Lender in full on the US Facility Revolving Credit Termination Date.
The principal amount of any US Facility Base Rate Loan may be prepaid in whole
or in part at any time. The principal amount of any Eurodollar Rate Loan may be
prepaid only at the end of the applicable Interest Period unless the US Facility
Borrower shall pay to the US Facility Agent for the account of the US Facility
Lenders the additional amount, if any, required under Section 6.05. All
prepayments of US Facility Loans made by the US Facility Borrower shall be in
the amount of (i) US $10,000,000, or (ii) such greater amount which is an
integral multiple of US $1,000,000, or (iii) the amount equal to all US Facility
Outstandings, or (iv) such other amount as necessary to comply with Section
2.01(a) or 2.07.
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2.04 Manner of Payment.
(a) Each payment of principal (including any prepayment) and payment of
interest and fees in respect of US Facility Loans, and any other amount required
to be paid to the US Facility Lenders with respect to the US Facility Loans,
shall be made to the US Facility Agent at its Principal Office, for the account
of each US Facility Lender's Applicable Lending Office. Each such payment shall
be made in US Dollars and in Same Day Funds before 12:00 noon (New York, New
York time) on the date such payment is due. The US Facility Agent may, but shall
not be obligated to, debit the amount of any such payment which is not made by
such time to any ordinary deposit account, if any, of the US Facility Borrower
with the US Facility Agent. The US Facility Borrower shall give the US Facility
Agent prior telephonic notice of any payment of principal, such notice to be
given by not later than 11:00 A.M. (New York, New York time), on the date of
such payment.
(b) The US Facility Agent shall deem any payment by or on behalf of the
US Facility Borrower hereunder that is not made both (i) in US Dollars and in
Same Day Funds and (ii) prior to 12:00 noon (New York, New York time) to be a
non-conforming payment. Any such payment shall not be deemed to be received by
the US Facility Agent until the later of (x) the time such funds become
available funds and (y) the next Business Day. The US Facility Agent shall give
prompt telephonic notice to the applicable Authorized Representative and each of
the US Facility Lenders (confirmed in writing) if any payment is non-conforming.
Any non-conforming payment may constitute or become a Default or Event of
Default in accordance with the terms of Section 11.01(a) and 11.01(b). Interest
shall continue to accrue on any principal as to which a non-conforming payment
is made until such funds become available funds (but in no event less than the
period from the date of such payment to the next succeeding Business Day) at
Default Rate or the maximum rate permitted by applicable law, whichever is
lower, from the date such amount was due and payable until the date such amount
is paid in full.
(c) In the event that any payment hereunder or under the US Facility
Notes becomes due and payable on a day other than a Business Day, then such due
date shall be extended to the next succeeding Business Day unless otherwise
provided under clause (ii) of the definition of "Interest Period"; provided that
interest shall continue to accrue during the period of any such extension.
2.05 US Facility Notes. US Facility Loans made by each US Facility
Lender shall be evidenced by the US Facility Note payable to the order of such
Lender in the respective amount of its Applicable Fronting Percentage of the
Total US Facility Commitment, which US Facility Note shall be dated the Closing
Date or a later date pursuant to an Assignment and Acceptance and shall be duly
completed, executed and delivered by the US Facility Borrower.
2.06 Pro Rata Payments. Except as otherwise provided herein, (a) each
payment on account of the principal of and interest on the US Facility Loans and
the fees described in Section 2.09 hereof shall be made to the US Facility Agent
for the account of the US Facility Lenders pro rata based on their Applicable
Fronting Percentages for the US Facility, (b) all payments to be made by the US
Facility Borrower for the account of each of the US Facility Lenders on account
of principal, interest and fees shall be made without diminution, set-off,
recoupment, counterclaim or, except as set forth in Section 6.06(a) hereof,
deduction, and (c) the US Facility Agent will promptly distribute
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payments received to the US Facility Lenders. Notwithstanding the foregoing, in
the event any US Facility Lender shall not be able to make an Eurodollar Rate
Loan under the circumstances provided in Section 6.01 or 6.03, interest shall be
allocated to such US Facility Lender according to the interest rate payable to
such US Facility Lender as set forth in Section 6.04.
2.07 Reductions. The US Facility Borrower shall, by notice from an
Authorized Representative, have the right from time to time (but not more
frequently than once during each fiscal quarter), upon not less than ten (10)
Business Days' written notice to the US Facility Agent, effective upon receipt,
to reduce the Total US Facility Commitment. The US Facility Agent shall give
each US Facility Lender, within one (1) Business Day, telefacsimile notice, or
telephonic notice (confirmed in writing), of such reduction. Each such reduction
shall be in the aggregate amount of US $10,000,000 or such greater amount which
is in an integral multiple of US $1,000,000, or the entire remaining Total US
Facility Commitment, and shall permanently reduce the Total US Facility
Commitment. No such reduction shall result in the payment of any Eurodollar Rate
Loan other than on the last day of the Interest Period of such Loan unless such
prepayment is accompanied by amounts due, if any, under Section 6.05. Each such
reduction of the Total US Facility Commitment shall be accompanied by payment of
the principal amount of US Facility Loans to the extent that the US Facility
Outstandings exceed the Total US Facility Commitment, or the US Facility
Revolving Credit Outstandings exceed the Total US Facility Revolving Credit
Commitment, after giving effect to such reduction, together with accrued and
unpaid interest on the amounts prepaid.
2.08 Conversions and Elections of Subsequent Interest Periods. Subject
to the limitations set forth below and in Article VI hereof, the US Facility
Borrower may:
(a) upon notice to the US Facility Agent on or before 10:00 A.M. (New
York, New York time) on any Business Day, Convert all or a part of Eurodollar
Rate Loans to US Facility Base Rate Loans under the US Facility on the last day
of the Interest Period for such Eurodollar Rate Loans; and
(b) provided that no Default or Event of Default shall have occurred
and be continuing, upon three (3) Business Days' notice to the US Facility Agent
on or before 10:00 A.M. (New York, New York time):
(i) elect a subsequent Interest Period for all or a portion of
Eurodollar Rate Loans under the US Facility to begin on the last day of
the then current Interest Period for such Eurodollar Rate Loans; and
(ii) Convert US Facility Base Rate Loans to Eurodollar Rate
Loans under the US Facility on any Business Day.
Notice of any such Continuations or Conversions shall be effected by
receipt of an appropriate Borrowing Notice and shall specify the effective date
of such Continuation or Conversion and the Interest Period to be applicable to
the US Facility Loan as Continued or Converted. Each Continuation and Conversion
pursuant to this Section 2.08 shall be subject to the limitations on Eurodollar
Rate Loans set forth in the definition of "Interest Period" herein and in
Sections 2.01 and
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2.03 and Article VI hereof. All such Continuations or Conversions of US Facility
Loans shall be effected pro rata based on the Applicable Fronting Percentages of
the US Facility Lenders for the US Facility.
2.09 Facility Fee. For the period beginning on the Closing Date and
ending on the Total Facility Termination Date, the Company agrees to pay to each
Lender at its office in the United States so designated thereby based on such
Lender's Applicable Commitment Percentage, a Facility Fee equal to the
Applicable Margin for Facility Fees times the Total US Facility Commitment. Such
payments of Facility Fees provided for in this Section 2.09 shall be due and
payable quarterly in arrears on the last Business Day of each March, June,
September and December beginning September 30, 1998 to and on the Total Facility
Termination Date. Notwithstanding the foregoing, so long as any US Facility
Lender fails to make available any portion of its US Facility Fronting
Commitment when properly requested by the US Facility Borrower, such Lender
shall not be entitled to receive payment of its pro rata share of such Facility
Fee until such Lender shall make available such portion. Such Facility Fee shall
be calculated on the basis of a year of 360 days for the actual number of days
elapsed.
2.10 Deficiency Advances. No US Facility Lender shall be responsible
for any default of any other US Facility Lender in respect to such other US
Facility Lender's obligation to make any US Facility Loan hereunder nor shall
the US Facility Fronting Commitment of any US Facility Lender or the US Facility
Commitment of any Lender be increased as a result of such default of any other
US Facility Lender. Without limiting the generality of the foregoing, in the
event any US Facility Lender shall fail to advance funds to the US Facility
Borrower as herein provided, the US Facility Agent may in its discretion, but
shall not be obligated to, make a US Facility Advance under the applicable US
Facility Note in its favor as a US Facility Lender of all or any portion of such
amount or amounts (each, a "deficiency advance") and shall thereafter be
entitled to payments of principal of and interest on such deficiency advance in
the same manner and at the same interest rate or rates to which such other US
Facility Lender would have been entitled had it made such advance under its US
Facility Note; provided that, upon payment to the US Facility Agent from such
other US Facility Lender of the entire outstanding amount of each such
deficiency advance, together with accrued and unpaid interest thereon, from the
most recent date or dates interest was paid to the US Facility Agent by the US
Facility Borrower on each US Facility Loan comprising the deficiency advance, at
the interest rate per annum for overnight borrowing by the US Facility Agent
from the Federal Reserve Bank, then such payment shall be credited against the
applicable US Facility Note of the US Facility Agent in full payment of such
deficiency advance and the US Facility Borrower shall be deemed to have borrowed
the amount of such deficiency advance from such other US Facility Lender as of
the most recent date or dates, as the case may be, upon which any payments of
interest were made by the US Facility Borrower thereon.
2.11 Use of Proceeds. The proceeds of the US Facility Loans made
pursuant to the US Facility hereunder shall be used by the US Facility Borrower
to repay and terminate the Prior US Facility, to finance capital expenditures
and Permitted Acquisitions and for other working capital and general corporate
needs of the Company and its Subsidiaries.
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2.12 US Facility Extension.
(a) With the unanimous consent of all Lenders under the Total
Facilities, at each US Facility Revolving Credit Extension Date the US Facility
Borrower can elect to extend the US Facility Revolving Credit Termination Date
for an additional period of 364 days with respect to the Unutilized Total US
Facility Commitment as at such US Facility Revolving Credit Extension Date;
provided, however, that in no event shall the US Facility Revolving Credit
Termination Date be extended beyond the Total Facility Termination Date.
(b) The US Facility Borrower shall notify the Lenders of its request
for such an extension by delivering to the US Facility Agent and the Global
Agent notice of such request signed by an Authorized Representative not more
than one hundred fifty (150) days nor less than ninety (90) days prior to the
applicable US Facility Revolving Credit Extension Date. Notice of receipt of
such request shall be provided by the US Facility Agent to the US Facility
Lenders and to each other Facility Agent, who shall in turn provide notice of
such request to the respective Lenders in each such Facility. The Global Agent
shall notify the US Facility Borrower in writing within sixty (60) days of its
receipt of such request for extension of the decision of the Lenders. Failure by
any Lender to respond to a request for an extension shall constitute a refusal
of such Lender to give its consent to such extension, and the US Facility
Revolving Credit Termination Date shall not be extended. Failure by the Global
Agent to give such notice to the US Facility Borrower as a result of not
receiving the consent of all Lenders to such extension shall constitute refusal
by the Lenders to extend the US Facility Revolving Credit Termination Date.
(c) If on any US Facility Revolving Credit Extension Date the US
Facility Borrower does not so elect to extend the US Facility Revolving Credit
Termination Date then in effect, or if all Lenders under the Total Facilities do
not unanimously consent to such extension, then as of such US Facility Revolving
Credit Termination Date, (i) in addition to any reduction required under Section
2.13 hereof, the Total US Facility Commitment as at such date shall be
permanently reduced by an amount equal to the Unutilized Total US Facility
Commitment as at such date, (ii) the Total US Facility Revolving Credit
Commitment shall be reduced to zero, and (iii) subject to the provisions of
Section 2.13 hereof, all US Facility Outstandings shall be due and payable in
full.
2.13 US Term Loan Option.
(a) At each US Facility Revolving Credit Extension Date, the US
Facility Borrower can elect to convert any or all US Facility Revolving Credit
Outstandings as of such US Facility Revolving Credit Extension Date into a term
loan on such date in the original principal amount equal to such US Facility
Revolving Credit Outstandings. US Facility Loans so converted by the US Facility
Borrower in accordance with this Section 2.13 shall be referred to as the "US
Facility Term Loans." The US Facility Term Loans shall be repaid in equal
quarterly installments on the last Business Day of each March, June, September
and December commencing with the first such date after the most recent US
Facility Revolving Credit Extension Date and continuing until and including a
final payment on the Total Facility Termination Date. The US Facility Term Loans
may be comprised of US Facility Base Rate Loans and Eurodollar Rate Loans as the
US Facility Borrower may elect in accordance with the provisions of this Article
II. The US Facility Term Loans shall bear
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interest on the same terms as the US Facility Loans prior to the conversion to
US Facility Term Loans until the Continuation or Conversion thereof pursuant to
Section 2.08 hereof. Amounts repaid or prepaid on the US Facility Term Loans may
not be reborrowed, and the Total US Facility Commitment shall be permanently
reduced by any such amounts.
(b) If on any US Facility Revolving Credit Extension Date the US
Facility Borrower does not so elect to convert all or a portion of US Facility
Revolving Credit Outstandings as of such date to US Facility Term Loans as
described in (a) above, then on the US Facility Revolving Credit Termination
Date then in effect, (i) all US Facility Revolving Credit Outstandings as of
such date which are not so converted shall be due and payable in full on the US
Facility Revolving Credit Termination Date then in effect, and (ii) in addition
to any reduction required under Section 2.12 hereof, the Total US Facility
Commitment as at such US Facility Revolving Credit Extension Date shall be
permanently reduced by an amount equal to the US Facility Revolving Credit
Outstandings as at such date which are not so converted.
2.14 Participations. On the Closing Date and each day thereafter until
the Total Facility Termination Date, each Lender (including a US Facility Lender
if necessary) will be deemed to have absolutely, irrevocably and unconditionally
purchased from each US Facility Lender a Participation in US Facility
Outstandings owing to such US Facility Lender in an amount such that, after such
purchase, each Lender will have a Facility Credit Exposure under the US Facility
equal in amount to its Applicable Commitment Percentage times the US Facility
Outstandings (referred to as the "Facility Participation Amount" for such Lender
in the US Facility). Each such Participation of each Lender in the US Facility
shall be funded in accordance with Section 11.07.
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ARTICLE III
The UK Facility
3.01 Advances
(a) Commitment. Subject to the terms and conditions of this Agreement,
each UK Facility Lender severally agrees to make, on behalf of all the Lenders,
UK Facility Advances in British Pounds Sterling or French Francs (as specified
in a Borrowing Notice) to the UK Facility Borrower requesting such UK Facility
Advance, as the case may be, as specified in such Borrowing Notice, from time to
time from the Closing Date until the Total Facility Termination Date, on a pro
rata basis as to the total borrowing requested by such UK Facility Borrower on
any day determined by such UK Facility Lender's Applicable Fronting Percentage
for UK Facility, up to but not exceeding (i) in the case of Advances in British
Pounds Sterling, the British Pounds Sterling Fronting Commitment of such UK
Facility Lender, and (ii) in the case of Advances in French Francs, the French
Franc Fronting Commitment of such UK Facility Lender, and each Lender, shall
have a Participation in each such UK Facility Advance pursuant to Section 3.13
equal in amount to its Applicable Commitment Percentage times such UK Facility
Advance; provided, however, that the UK Facility Lenders will not be required
and shall have no obligation to make any UK Facility Advance (A) so long as a
Default or an Event of Default has occurred and is continuing or (B) if the
Lenders have accelerated the maturity of the Obligations as a result of an Event
of Default; provided further, however, that immediately after giving effect to
each such UK Facility Advance, (x) the UK Facility Outstandings shall not exceed
the Total UK Facility Commitment and (y) the French Franc Outstandings shall not
exceed the Total French Franc Commitment. Within such limits, the UK Facility
Borrowers may borrow, repay and reborrow UK Facility Loans hereunder, on a
Business Day, from the Closing Date until, but (as to borrowings and
reborrowings) not including, the Total Facility Termination Date; provided,
however, that the aggregate principal amount outstanding to any UK Facility
Borrower shall not at any time exceed its UK Facility Maximum Amount; and
provided further, however, that (i) no Offshore Rate Loan shall be made which
has an Interest Period that extends beyond the Total Facility Termination Date
and (ii) each Offshore Rate Loan may be repaid only on the last day of the
Interest Period with respect thereto, unless such payment is accompanied by the
additional payment, if any, due under Section 6.05. The UK Facility Borrowers
agree that if at any time the UK Facility Outstandings shall exceed the Total UK
Facility Commitment or the French Franc Outstandings shall exceed the Total
French Franc Commitment, the UK Facility Borrowers shall immediately repay a
principal amount of the outstanding UK Facility Loans such that, as a result of
such reduction, the Total UK Facility Commitment shall equal or exceed the UK
Facility Outstandings and the Total French Franc Commitment shall equal or
exceed the French Franc Outstandings.
(b) Amounts, Advances and Rate Selection.
(i) The principal amount outstanding on any UK Facility Loan
shall be recorded in the UK Facility Agent's records in British Pounds
Sterling in the case of a UK Facility Advance of British Pounds
Sterling and in French Francs in the case of a UK Facility Advance of
French Francs, in each case based on the amount of any UK Facility
Advance as reduced from time to time by the amount of any principal
payments with respect to such UK Facility
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Advance. In the case of a UK Facility Advance of French Francs, the UK
Facility Agent shall also record the principal amount outstanding on
any such UK Facility Loan in British Pounds Sterling, based on the
Sterling Equivalent Amount of such UK Facility Advance determined based
on the Spot Rate of Exchange as of the date of such Advance, as reduced
from time to time by any principal payments with respect thereto. In
the event a UK Facility Loan is Continued pursuant to Section 3.08,
such election shall be treated as a UK Facility Advance in the
Applicable Currency of the existing Loan for purposes of this Section
3.01, with the Sterling Equivalent Amount of the principal amount of
any such Loan in French Francs determined based on the Spot Rate of
Exchange as of the date of such Continuation. The UK Facility Agent
shall adjust its books to reflect the new Sterling Equivalent Amount of
such UK Facility Loan, and in the event that such adjustment would
cause the UK Facility Outstandings to exceed the Total UK Facility
Commitment, or the French Franc Outstandings to exceed the Total French
Franc Commitment, the UK Facility Borrowers shall, immediately on the
effective date of such Continuation, repay the portion of such
Continued Loan (applying the new Spot Rate of Exchange) necessary to
ensure that thereafter the Total UK Facility Commitment shall equal or
exceed the UK Facility Outstandings and the Total French Franc
Commitment shall equal or exceed the French Franc Outstandings. There
shall be no more than ten (10) Offshore Loans outstanding at any one
time under the UK Facility.
(ii) Each UK Facility Loan and each Continuation and
Conversion under Section 3.08 in British Pounds Sterling shall be in an
amount not less than pound 3,000,000 and if greater in integral
multiples of pound 1,000,000; each UK Facility Loan and each
Continuation and Conversion under Section 3.08 in French Francs shall
be in an amount not less than the French Franc Equivalent Amount of
pound 1,000,000 and if greater in integral multiples of the French
Franc Equivalent Amount of pound 500,000.
(iii) For each UK Facility Advance an Authorized
Representative shall give the UK Facility Agent at least (A) three (3)
Business Days' irrevocable telefacsimile notice prior to 11:00 A.M.
(London, England time) of each Offshore Rate Loan in French Francs
representing a borrowing or Continuation or Conversion hereunder, and
(B) two (2) Business Days' irrevocable telefacsimile notice prior to
11:00 A.M. (London, England time) of each Offshore Rate Loan in British
Pounds Sterling representing a borrowing or Continuation or Conversion
hereunder. Each such notice shall be in the form of a Borrowing Notice
in the form attached hereto as Exhibit D-2, which shall be effective
upon receipt by the UK Facility Agent, and shall specify the Type of
Loan, whether the Loan is to be made in British Pounds Sterling or
French Francs, the amount of the UK Facility Advance to be made, the
date of borrowing and the Interest Period to be used in the computation
of interest. Neither the UK Facility Agent nor any UK Facility Lender
shall incur any liability to any UK Facility Borrower in acting upon
any notice referred to above which the UK Facility Agent believes in
good faith to have been given by an Authorized Representative of such
UK Facility Borrower or for otherwise acting in good faith, and upon
funding of UK Facility Loans by any UK Facility Lender in accordance
with this Agreement pursuant to any such notice, such UK Facility
Borrower shall have effected UK Facility Loans hereunder. A Borrowing
Notice for an Offshore Rate Loan shall be irrevocable, and UK Facility
Borrower giving such notice shall be bound to make a borrowing in
accordance therewith, unless such UK Facility
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Borrower pays to the UK Facility Lenders such amounts as may be due
under Section 6.05 for failure of a borrowing of an Offshore Rate Loan
to occur on the date specified therefor in a Borrowing Notice. The
duration of the initial Interest Period for each UK Facility Loan shall
be as specified in the initial Borrowing Notice. The UK Facility
Borrowers shall have the option to elect the duration of subsequent
Interest Periods and to Continue the UK Facility Loans in accordance
with Section 3.08. If the UK Facility Agent does not receive a notice
of election of duration of an Interest Period by the time prescribed
hereby and by Section 3.08, the applicable UK Facility Borrower shall
be deemed to have elected to Continue such Loan as an Offshore Rate
Loan with a subsequent Interest Period of one month.
(iv) Notice of receipt of each Borrowing Notice in respect of
UK Facility Loans, together with the amount of each UK Facility
Lender's portion of an Advance requested thereunder, shall be provided
by the UK Facility Agent to each UK Facility Lender by telefacsimile
with reasonable promptness, but not later than (A) with respect to UK
Facility Advances in British Pounds Sterling, 4:00 P.M. (London,
England time) on the day two (2) Business Days prior to the date of
such UK Facility Advance as set forth in such Borrowing Notice and (B)
with respect to UK Facility Advances in French Francs, 4:00 P.M.
(London, England time) on the day three (3) Business Days prior to the
date of such UK Facility Advance as set forth in such Borrowing Notice.
Notice of the applicable interest rate for the requested UK Facility
Advance shall be provided by the UK Facility Agent to each UK Facility
Lender by telefacsimile with reasonable promptness, but not later than
(C) with respect to UK Facility Advances in British Pounds Sterling,
2:00 P.M. (London, England time) on the date of the UK Facility Advance
as set forth in such Borrowing Notice and (D) with respect to UK
Facility Advances in French Francs, 2:00 P.M. (London, England time) on
the day two (2) Business Days prior to the date of such UK Facility
Advance as set forth in such Borrowing Notice.
(v) In the case of UK Facility Advances in British Pounds
Sterling, each UK Facility Lender shall, pursuant to the terms and
subject to the conditions of this Agreement, not later than 12:00 noon
(London, England time) on the date specified for such UK Facility
Advance, make the amount of the UK Facility Advance to be made by it on
such day available to the applicable UK Facility Borrower by depositing
or transferring the proceeds thereof in British Pounds Sterling and in
Same Day Funds to the UK Facility Agent at its Principal Office. The
amount so received by the UK Facility Agent shall, subject to the terms
of this Agreement, be made available to the applicable UK Facility
Borrower by deposit of the proceeds to an account of such UK Facility
Borrower maintained at the Principal Office or otherwise as shall be
directed in the applicable Borrowing Notice.
(vi) In the case of UK Facility Advances in French Francs,
each UK Facility Lender shall, pursuant to the terms and subject to the
conditions of this Agreement, not later than 9:00 A.M. (London, England
time) on the date specified for such UK Facility Advance, make the
amount of the UK Facility Advance to be made by it on such day
available to the applicable UK Facility Borrower by depositing or
transferring the proceeds thereof in French Francs and in Same Day
Funds to the account of the UK Facility Agent at the Funding Bank.
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The amount so received by the Funding Bank shall, subject to the terms
of this Agreement and upon instruction from the UK Facility Agent to
the Funding Bank on the same day but no later than 9:00 A.M. (London,
England time), be made available to the applicable UK Facility Borrower
by deposit of the amount of French Francs specified in the related
Borrowing Notice to an account of such UK Facility Borrower maintained
at the Funding Bank.
3.02 Payment of Interest.
(a) The UK Facility Borrowers shall pay interest to the UK Facility
Agent for the account of each UK Facility Lender on the outstanding and unpaid
principal amount of each UK Facility Loan made by such UK Facility Lender for
the period commencing on the date of such UK Facility Loan until such Loan shall
be paid or Continued, as the case may be, at the then applicable Offshore Rate,
such payments to be made (i) in British Pounds Sterling with respect to UK
Facility Loans made in British Pounds Sterling, and (ii) in French Francs with
respect to UK Facility Loans made in French Francs; provided, however, that if
any Event of Default shall have occurred and be continuing, all amounts
outstanding hereunder shall bear interest thereafter at the Default Rate.
(b) Interest on each UK Facility Loan shall be computed on the basis of
a year of 365 days for Advances in British Pounds Sterling and 360 days for
Advances in French Francs and calculated for the actual number of days elapsed.
Interest on each UK Facility Loan shall be paid (i) on the last day of the
applicable Interest Period for each such Offshore Rate Loan and, if the Interest
Period extends for more than three months, also at intervals of three months
after the first day of the Interest Period and (ii) upon payment in full of the
principal of each such Loan. Interest on amounts not paid when due shall be
payable on demand.
3.03 Payment of Principal. The principal amount of each UK Facility
Loan shall be due and payable to the UK Facility Agent for the benefit of each
UK Facility Lender in full on the Total Facility Termination Date. The principal
amount of any Offshore Rate Loan may be prepaid only at the end of the
applicable Interest Period unless the UK Facility Borrowers shall pay to the UK
Facility Agent for the account of the UK Facility Lenders the additional amount,
if any, required under Section 6.05 and, in the case of a prepayment of any
Offshore Rate Loan in French Francs, the applicable UK Facility Borrower
notifies the UK Facility Agent at least three (3) Business Days prior to such
prepayment. All prepayments of UK Facility Loans made by the UK Facility
Borrowers shall be in the Applicable Currency of the respective UK Facility Loan
in the amount of (i) pound 1,000,000 (or the French Franc Equivalent Amount
thereof if in French Francs) or (ii) such greater amount which is an integral
multiple of pound 500,000 (or the French Franc Equivalent Amount thereof if in
French Francs), or (iii) the amount equal to all UK Facility Outstandings, or
(iv) such other amount as necessary to comply with Section 3.01(a) or 3.07.
3.04 Manner of Payment.
(a) Each payment of principal (including any prepayment) and payment of
interest and fees in respect of UK Facility Loans, and any other amount required
to be paid to the UK Facility Lenders with respect to the UK Facility Loans,
shall be made to the UK Facility Agent at its Principal Office,
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for the account of each UK Facility Lender's Applicable Lending Office, to be
recorded in British Pounds Sterling and, if applicable, French Francs, as set
forth in Section 3.01(b). Each such payment shall be made in the Applicable
Currency of the UK Facility Loan in Same Day Funds before 1:00 P.M. (London,
England time) on the date such payment is due. The UK Facility Agent may, but
shall not be obligated to, debit the amount of any such payment which is not
made by such time to any ordinary deposit account, if any, of the applicable UK
Facility Borrower with the UK Facility Agent. The UK Facility Borrowers shall
give the UK Facility Agent prior telephonic notice of any payment of principal,
such notice to be given by (i) not later than 11:00 A.M. (London, England time)
at least two (2) Business Days prior to the date of such payment in the case of
payment of a UK Facility Loan in British Pounds Sterling and (ii) not later than
11:00 A.M. (London, England time) at least three (3) Business Days prior to the
date of such payment in the case of payment of a UK Facility Loan in French
Francs.
(b) The UK Facility Agent shall deem any payment by or on behalf of the
UK Facility Borrowers hereunder that is not made both (i) in British Pounds
Sterling in the case of UK Facility Loans made in British Pounds Sterling or in
French Francs in the case of UK Facility Loans made in French Francs and, in
either case, in Same Day Funds and (ii) prior to 1:00 P.M. (London, England
time) to be a non-conforming payment. Any such payment shall not be deemed to be
received by the UK Facility Agent until the later of (x) the time such funds
become available funds in the required Applicable Currency and (y) the next
Business Day. The UK Facility Agent shall give prompt telephonic notice to the
applicable Authorized Representative and each of the UK Facility Lenders
(confirmed in writing) if any payment is non-conforming. Any non-conforming
payment may constitute or become a Default or Event of Default in accordance
with the terms of Section 11.01(a) and 11.01(b). Interest shall continue to
accrue on any principal as to which a non-conforming payment is made until such
funds become available funds (but in no event less than the period from the date
of such payment to the next succeeding Business Day) at the Default Rate or the
maximum rate permitted by applicable law, whichever is lower, from the date such
amount was due and payable until the date such amount is paid in full.
(c) In the event that any payment hereunder becomes due and payable on
a day other than a Business Day, then such due date shall be extended to the
next succeeding Business Day unless otherwise provided under clause (ii) of the
definition of "Interest Period"; provided that interest shall continue to accrue
during the period of any such extension.
3.05 Evidence of Indebtedness. Each UK Facility Borrower hereby
authorizes each UK Facility Lender and the UK Facility Agent to record, from
time to time, in its records, the date and amount of each UK Facility Loan; the
interest rates payable by the applicable UK Facility Borrower in respect of each
UK Facility Loan and any Interest Period applicable thereto; the dates and
amounts of all payments received by such UK Facility Lender on account of
principal, interest and fees; and the amount of all the UK Facility Loans which
remain payable by the UK Facility Borrowers to such UK Facility Lender. All
amounts and other information so recorded shall be prima facie evidence thereof.
The failure to record, or any error in recording, any such amount or other
information shall not limit or impair the obligations of the UK Facility
Borrowers hereunder or under any Loan Document.
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3.06 Pro Rata Payments. Except as otherwise provided herein, (a) each
payment on account of the principal of and interest on the UK Facility Loans and
the fees described in Section 3.09 hereof shall be made to the UK Facility Agent
for the account of the UK Facility Lenders pro rata based on their Applicable
Fronting Percentages for the UK Facility, (b) all payments to be made by the UK
Facility Borrowers for the account of each of the UK Facility Lenders on account
of principal, interest and fees shall be made without diminution, set-off,
recoupment, counterclaim or, except as set forth in Section 6.06(a), deduction,
and (c) the UK Facility Agent will promptly distribute payments received to the
UK Facility Lenders. Notwithstanding the foregoing, in the event any UK Facility
Lender shall not be able to make an Eurodollar Rate Loan under the circumstances
provided in Section 6.01 or 6.03, interest shall be allocated to such UK
Facility Lender according to the interest rate payable to such UK Facility
Lender as set forth in Section 6.04.
3.07 Reductions. The UK Facility Borrowers shall, by notice from an
Authorized Representative, have the right from time to time (but not more
frequently than once during each fiscal quarter), upon not less than ten (10)
Business Days' written notice to the UK Facility Agent, effective upon receipt,
to reduce the Total UK Facility Commitment. The UK Facility Agent shall give
each UK Facility Lender, within one (1) Business Day, telefacsimile notice, or
telephonic notice (confirmed in writing), of such reduction. Each such reduction
shall be in the aggregate amount of pound 1,000,000 or such greater amount which
is in an integral multiple of pound 500,000, or the entire remaining Total UK
Facility Commitment, and shall permanently reduce the Total UK Facility
Commitment. No such reduction shall result in the payment of any Offshore Rate
Loan other than on the last day of the Interest Period of such Loan unless such
prepayment is accompanied by amounts due, if any, under Section 6.05. Each such
reduction of the Total UK Facility Commitment shall be accompanied by payment of
the principal amount of the UK Facility Loans to the extent that the UK Facility
Outstandings exceed the Total UK Facility Commitment or the French Franc
Outstandings exceed the Total French Franc Commitment, in each case after giving
effect to such reduction, together with accrued and unpaid interest on the
amounts prepaid. Any reduction of the Total UK Facility Commitment hereunder
shall result, ipso facto, in a pro rata reduction of the Total French Franc
Commitment so that, as reduced, the Sterling Equivalent Amount of the Total
French Franc Commitment shall at all times remain equal to 40% of the Total UK
Facility Commitment.
3.08 Conversions and Elections of Subsequent Interest Periods. Subject
to the limitations set forth below and in Article VI hereof, and provided that
no Default or Event of Default shall have occurred and be continuing, the UK
Facility Borrowers may, upon three (3) Business Days' notice to the UK Facility
Agent prior to 11:00 A.M. (London, England time) in the case of an Offshore Rate
Loan in British Pounds Sterling and four (4) Business Days' notice to the UK
Facility Agent prior to 11:00 A.M. (London, England time) in the case of an
Offshore Rate Loan in French Francs, elect a subsequent Interest Period for all
or a portion of Offshore Rate Loans under the UK Facility to begin on the last
day of the then current Interest Period for such Offshore Rate Loans. Notice of
any such Continuations shall be effected by receipt of an appropriate Borrowing
Notice and shall specify the effective date of such Continuation and the
Interest Period to be applicable to the UK Facility Loan as Continued. Each
Continuation pursuant to this Section 3.08 shall be subject to the limitations
on Offshore Rate Loans set forth in the definition of "Interest Period" herein
and in Section 3.01 and 3.03 and Article VI hereof. All such Continuations of UK
Facility Loans shall be
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effected pro rata based on the Applicable Fronting Percentages of the UK
Facility Lenders for the UK Facility and shall be in the same currency as the
original such Loan.
3.09 Facility Fee. For the period beginning on the Closing Date and
ending on the Total Facility Termination Date, the Company agrees to pay to each
Lender at its office in the United States so designated thereby based on such
Lender's Applicable Commitment Percentage, a Facility Fee equal to the
Applicable Margin for Facility Fees times the Total UK Facility Commitment. Such
payments of Facility Fees provided for in this Section 3.09 shall be due and
payable quarterly in arrears on the last Business Day of each March, June,
September and December beginning September 30, 1998 to and on the Total Facility
Termination Date. Notwithstanding the foregoing, so long as any UK Facility
Lender fails to make available any portion of its UK Facility Fronting
Commitment when properly requested by a UK Facility Borrower, such Lender shall
not be entitled to receive payment of its pro rata share of such Facility Fee
until such Lender shall make available such portion. Such Facility Fee shall be
calculated on the basis of a year of 365 days for the actual number of days
elapsed.
3.10 Deficiency Advances. No UK Facility Lender shall be responsible
for any default of any other UK Facility Lender in respect to such other UK
Facility Lender's obligation to make any UK Facility Loan hereunder nor shall
the UK Facility Fronting Commitment of any UK Facility Lender or the UK Facility
Commitment of any Lender be increased as a result of such default of any other
UK Facility Lender. Without limiting the generality of the foregoing, in the
event any UK Facility Lender shall fail to advance funds to a UK Facility
Borrower as herein provided, the UK Facility Agent may in its discretion, but
shall not be obligated to, make a UK Facility Advance hereunder as a UK Facility
Lender of all or any portion of such amount or amounts (each, a "deficiency
advance") and shall thereafter be entitled to payments of principal of and
interest on such deficiency advance in the same manner and at the same interest
rate or rates to which such other UK Facility Lender would have been entitled
had it made such an advance; provided that, upon payment to the UK Facility
Agent from such other UK Facility Lender of the entire outstanding amount of
each such deficiency advance, together with accrued and unpaid interest thereon,
from the most recent date or dates interest was paid to the UK Facility Agent by
the applicable UK Facility Borrower on each UK Facility Loan comprising the
deficiency advance, at the interest rate per annum equal to the UK Overnight
Rate, then such payment shall be credited against the applicable UK Facility
Outstanding owing to the UK Facility Agent in full payment of such deficiency
advance and the applicable UK Facility Borrower shall be deemed to have borrowed
the amount of such deficiency advance from such other UK Facility Lender as of
the most recent date or dates, as the case may be, upon which any payments of
interest were made by such UK Facility Borrower thereon.
3.11 Use of Proceeds. The proceeds of the UK Facility Loans made
pursuant to the UK Facility hereunder shall be used by the UK Facility Borrowers
to repay and terminate the Prior UK Facility, the Prior Irish Facility and the
Prior French Facility, to finance capital expenditures and Permitted
Acquisitions and for other working capital and general corporate needs of the UK
Facility Borrowers.
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3.12 One Loan.
(a) Subject to subsection (c) below, all UK Facility Loans and UK
Facility Advances by the UK Facility Lenders to any UK Facility Borrower shall
constitute the joint and several general obligation of each of the UK Facility
Borrowers. Each UK Facility Borrower shall be jointly and severally liable to
the UK Facility Agent and the UK Facility Lenders for all Obligations hereunder
in respect of the UK Facility, regardless of whether such Obligations arise as a
result of UK Facility Advances to such Borrower, it being stipulated and agreed
that UK Facility Advances hereunder to any UK Facility Borrower inure to the
benefit of each of the UK Facility Borrowers, and that the UK Facility Lenders
are relying on the joint and several liability of the UK Facility Borrowers in
extending credit under the UK Facility.
(b) Subject to subsection (c) below, each UK Facility Borrower
guarantees to the UK Facility Lenders the payment in full of all of the
Obligations of the other UK Facility Borrowers to the UK Facility Lenders in
respect of UK Facility and further guarantees the due performance by each other
UK Facility Borrower of its respective duties and covenants made in favor of the
UK Facility Agent and the UK Facility Lenders hereunder. Each UK Facility
Borrower agrees that the joint and several liability of the UK Facility
Borrowers shall not be impaired or affected by any modification, supplement,
extension or amendment of any contract or agreement to which the parties thereto
may hereafter agree, nor by any modification, release or other alteration of any
of the rights of the UK Facility Agent and the UK Facility Lenders with respect
to any collateral, nor by any delay, extension of time, renewal, compromise or
other indulgence granted by the UK Facility Agent and the UK Facility Lenders
with respect to any of the Obligations, nor by any other agreements or
arrangements whatever with any other UK Facility Borrower, any guarantor or any
other Person, each UK Facility Borrower hereby waiving all notice of any such
delay, extension, release, substitution, renewal, compromise or other
indulgence, and hereby consenting to be bound thereby as fully and effectually
as if it had expressly agreed thereto in advance. The liability of each UK
Facility Borrower hereunder is direct and unconditional as to all of the
Obligations hereunder in respect of the UK Facility, and may be enforced without
requiring the UK Facility Agent or the UK Facility Lenders first to resort to
any other right, remedy or security; no UK Facility Borrower shall have any
right of subrogation, reimbursement or indemnity whatsoever, nor any right of
recourse to security for any of the Obligations in respect of the UK Facility,
unless and until all of said Obligations have been paid in full.
(c) Notwithstanding subsections (a) and (b) above, the joint and
several liability of each UK Facility Borrower for, and its obligation to
guarantee payment of all Obligations of, the other UK Facility Borrowers in
respect of the UK Facility shall not at any time exceed its UK Facility Maximum
Amount.
3.13 Participations. On the Closing Date and each day thereafter until
the Total Facility Termination Date, each Lender (including a UK Facility Lender
if necessary) will be deemed to have absolutely, irrevocably and unconditionally
purchased from each UK Facility Lender a Participation in UK Facility
Outstandings owing to such UK Facility Lender in an amount such that, after such
purchase, each Lender will have a Facility Credit Exposure under the UK Facility
equal in amount to its Applicable Commitment Percentage times the UK Facility
Outstandings (referred to as the
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"Facility Participation Amount" for such Lender in the UK Facility). Each such
Participation of each Lender in the UK Facility shall be funded in accordance
with Section 11.07.
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ARTICLE IV
The Canadian Facility
4.01 Advances.
(a) Commitment. Subject to the terms and conditions of this Agreement,
each Canadian Facility Lender severally agrees to make, on behalf of all the
Lenders, Canadian Facility Advances in Canadian Dollars to the Canadian Facility
Borrower from time to time from the Closing Date until (i) the Total Facility
Termination Date in the case of the Canadian Facility Full Maturity Tranche and
(ii) the Canadian Facility Renewable Tranche Termination Date in the case of the
Canadian Facility Renewable Tranche, in each case on a pro rata basis as to the
total borrowing requested by the Canadian Facility Borrower on any day
determined by such Canadian Facility Lender's Applicable Fronting Percentage for
the Canadian Facility, up to but not exceeding (A) in the case of Advances under
the Canadian Facility Renewable Tranche, the Canadian Facility Renewable Tranche
Fronting Commitment of such Canadian Facility Lender, and (B) in the case of
Advances under the Canadian Facility Full Maturity Tranche, the Canadian
Facility Full Maturity Tranche Fronting Commitment of such Canadian Facility
Lender, and each Lender shall have a Participation in each such Canadian
Facility Advance pursuant to Section 4.14 equal in amount to its Applicable
Commitment Percentage times such Canadian Facility Advance; provided, however,
that the Canadian Facility Lenders will not be required and shall have no
obligation to make any Canadian Facility Advance (x) so long as a Default or an
Event of Default has occurred and is continuing or (y) if the Lenders have
accelerated the maturity of the Obligations as a result of an Event of Default;
provided further, however, that immediately after giving effect to each such
Canadian Facility Advance, (I) the Canadian Facility Outstandings shall not
exceed the Total Canadian Facility Commitment, (II) the Canadian Facility
Renewable Tranche Outstandings shall not exceed the Canadian Facility Renewable
Tranche Commitment, and (III) the Canadian Facility Full Maturity Tranche
Outstandings shall not exceed the Canadian Facility Full Maturity Tranche
Commitment. Within such limits, the Canadian Facility Borrower may borrow, repay
and reborrow Canadian Facility Loans hereunder, on a Business Day, from the
Closing Date until, but (as to borrowings and reborrowings) not including, (i)
the Total Facility Termination Date in the case of the Canadian Facility Full
Maturity Tranche and (ii) the Canadian Facility Renewable Tranche Termination
Date in the case of the Canadian Facility Renewable Tranche; provided, however,
that (A) no Canadian Facility BA Rate Loan shall be made which has an Interest
Period or maturity that extends beyond the Total Facility Termination Date, in
the case of the Canadian Facility Full Maturity Tranche, or the Canadian
Facility Renewable Tranche Termination Date, in the case of the Canadian
Facility Renewable Tranche, and (B) each Canadian Facility BA Rate Loan may be
repaid only on the last day of the Interest Period with respect thereto, unless
such prepayment is accompanied by the additional payment, if any, due under
Section 6.05. The Canadian Facility Borrower agrees that if at any time (x) the
Canadian Facility Outstandings shall exceed the Total Canadian Facility
Commitment, (y) the Canadian Facility Renewable Tranche Outstandings shall
exceed the Canadian Facility Renewable Tranche Commitment, or (z) the Canadian
Facility Full Maturity Tranche Outstandings shall exceed the Canadian Facility
Full Maturity Tranche Commitment, then in any such case the Canadian Facility
Borrower shall immediately repay a principal amount of the outstanding Canadian
Facility Loans such that, as a result of such reduction, (I) the Total Canadian
Facility Commitment shall equal or exceed the Canadian Facility Outstandings,
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(II) the Canadian Facility Renewable Tranche Commitment shall equal or exceed
the Canadian Facility Renewable Tranche Outstandings and (III) the Canadian
Facility Full Maturity Tranche Commitment shall equal or exceed the Canadian
Facility Full Maturity Tranche Outstandings.
(b) Amounts, Advances and Rate Selection.
(i) The principal amount outstanding on any Canadian Facility
Loan shall be recorded in the Canadian Facility Agent's records in
Canadian Dollars, based on the amount of any Canadian Facility Advance
as reduced from time to time by the amount of any principal payments
with respect to such Canadian Facility Loan. In the event a Canadian
Facility Loan is Continued or Converted pursuant to Section 4.08, such
election shall be treated as a Canadian Facility Advance for purposes
of this Section 4.01. There shall be no more than ten (10) Canadian
Facility BA Rate Loans outstanding at any one time under the Canadian
Facility.
(ii) Each Canadian Facility Loan and each Continuation and
Conversion under Section 4.08 shall be in an amount not less than CAN
$2,000,000 and, if greater, in integral multiples of CAN $100,000.
(iii) For each Canadian Facility Advance, an Authorized
Representative of the Canadian Facility Borrower shall give the
Canadian Facility Agent (A) at least two (2) Business Days' irrevocable
telefacsimile notice prior to 10:00 A.M. (Toronto, Canada time) of each
Canadian Facility BA Rate Loan representing a borrowing or Continuation
or Conversion hereunder and (B) at least two (2) Business Days'
irrevocable telefacsimile notice prior to 10:00 A.M. (Toronto, Canada
time) of each Canadian Facility Base Rate Loan representing a borrowing
or Conversion hereunder. Each such notice shall be in the form of a
Borrowing Notice in the form attached hereto as Exhibit D-3, which
shall be effective upon receipt by the Canadian Facility Agent, and
shall specify the Type of Canadian Facility Loan (Canadian Facility BA
Rate or Canadian Facility Base Rate), the amount of the Canadian
Facility Advance to be made, whether such advance is under the Canadian
Facility Renewable Tranche or the Canadian Facility Full Maturity
Tranche, the date of borrowing and the Interest Period (if a Canadian
Facility BA Rate Loan) to be used in the computation of interest.
Neither the Canadian Facility Agent nor any Canadian Facility Lender
shall incur any liability to any Canadian Facility Borrower in acting
upon any notice referred to above which the Canadian Facility Agent
believes in good faith to have been given by an Authorized
Representative of the Canadian Facility Borrower or for otherwise
acting in good faith, and upon funding of Canadian Facility Loans by
any Canadian Facility Lender in accordance with this Agreement pursuant
to any such notice, such Canadian Facility Borrower shall have effected
Canadian Facility Loans hereunder. A Borrowing Notice for a Canadian
Facility BA Rate Loan shall be irrevocable, and the Canadian Facility
Borrower shall be bound to make a borrowing in accordance therewith,
unless such Canadian Facility Borrower pays to the Canadian Facility
Lenders such amounts as may be due under Section 6.05 for failure of a
borrowing of a Canadian Facility BA Rate Loan to occur on the date
specified therefor in the related Borrowing Notice. The duration of the
initial Interest Period for each Canadian Facility BA Rate Loan shall
be as specified in the initial Borrowing Notice. The Canadian
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Facility Borrower shall have the option to elect the duration of
subsequent Interest Periods and to Continue or Convert the Loans in
accordance with Section 4.08. If the Canadian Facility Agent does not
receive a notice of election of the duration of an Interest Period or
of the Conversion of a Loan by the time prescribed hereby and by
Section 4.08, the Canadian Facility Borrower shall be deemed to have
elected to Convert such Loan to or Continue such Loan as a Canadian
Facility Base Rate Loan until the Canadian Facility Borrower notifies
the Canadian Facility Agent in accordance with Section 4.08.
(iv) Notice of receipt of each Borrowing Notice in respect of
Canadian Facility Loans shall be provided by the Canadian Facility
Agent to each Canadian Facility Lender by telefacsimile with reasonable
promptness, but not later than 12:00 noon (Toronto, Canada time) on the
same day as the Canadian Facility Agent's receipt of such notice from
the Canadian Facility Borrower so long as receipt is prior to 10:00
A.M. (Toronto, Canada time). The Canadian Facility Agent shall
determine the Canadian Facility Fixed BA Rate for a Canadian Facility
BA Rate Loan at 10:00 A.M. (Toronto, Canada time) on the day of such
proposed Canadian Facility Fixed BA Rate, and not later than 12:00 noon
(Toronto, Canada time) on such date, the Canadian Facility Agent shall
provide the Canadian Facility Borrower and each Canadian Facility
Lender notice by telefacsimile transmission of the amount of the
Canadian Facility Loan or Loans required to be made by each Canadian
Facility Lender on such date, and the applicable Canadian Facility
Fixed BA Rate.
(v) Not later than 12:00 noon (Toronto, Canada time) on the
date specified for each Canadian Facility Advance, each Canadian
Facility Lender shall, pursuant to the terms and subject to the
conditions of this Agreement, make the amount of the Canadian Facility
Advance or Advances to be made by it on such day available to the
Canadian Facility Borrower by depositing or transferring the proceeds
thereof in Canadian Dollars and Same Day Funds to the Canadian Facility
Agent at the Principal Office. The amount so received by the Canadian
Facility Agent shall, subject to the terms of this Agreement, on the
same day be made available to the Canadian Facility Borrower by
delivery to the Canadian Facility Borrower's account with the Canadian
Facility Agent.
4.02 Payment of Interest.
(a) The Canadian Facility Borrower shall pay interest to the Canadian
Facility Agent for the account of each Canadian Facility Lender on the
outstanding and unpaid principal amount of each Canadian Facility Loan made by
such Canadian Facility Lender for the period commencing on the date of such
Canadian Facility Loan until such Loan shall be paid, Continued or Converted, as
the case may be, at the then applicable Canadian Facility Base Rate for Canadian
Facility Base Rate Loans or applicable Canadian Facility Fixed BA Rate for
Canadian Facility BA Rate Loans, such payments to be made in Canadian Dollars;
provided, however, that if any Event of Default shall have occurred and be
continuing, all amounts outstanding hereunder shall bear interest thereafter at
the Default Rate.
The Canadian Facility Agent's certificate as to each rate of interest
payable hereunder shall be prima facie evidence of such rate.
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(b) Computation of Interest. The Canadian Facility Borrower shall pay
to the Canadian Facility Agent for the benefit of the Canadian Facility Lenders
interest on each Canadian Facility Loan, which interest shall be calculated on
the outstanding principal amount daily for the period:
(i) in the case of a Canadian Facility Base Rate Loan,
commencing on and including the day on which it is advanced and ending
on, but excluding, the day on which it is repaid; or
(ii) in the case of a Canadian Facility BA Rate Loan,
commencing on and including the first day of the Interest Period
relative to such Canadian Facility BA Rate Loan and ending on, but
excluding, the last day of such Interest Period,
at the rate of interest per annum equal to:
(i) the Canadian Facility Base Rate for Canadian Facility Base
Rate Loans, on the basis of a year of 365 days for the actual number of
days elapsed; or
(ii) the Canadian Facility Fixed BA Rate for Canadian Facility
BA Rate Loans, on the basis of a year of 365 days for the actual number
of days elapsed.
For the purposes of this Agreement and calculation of interest on the
basis of a year of 365 days, each rate of interest determined pursuant to such
calculation expressed as an annual rate for the purposes of the Interest Act
(Canada) is equivalent to such rate as so determined multiplied by the number of
days in the calendar year in which the same is to be ascertained and divided by
365. The parties further agree that for the purposes of the Interest Act
(Canada), (i) the principle of deemed reinvestment of interest shall not apply
to any interest calculation under this Agreement, and (ii) the rates of interest
stipulated in this Agreement are intended to be nominal rates and not effective
rates or yields.
(c) Accrual and Payment of Interest. Interest on each Canadian Facility
Loan shall accrue from day to day but shall not compound and shall be payable:
(i) in the case of a Canadian Facility Base Rate Loan or any
other amount payable hereunder other than in respect of a Canadian
Facility BA Rate Loan, monthly in arrears on the last Business Day of
each month; or
(ii) in the case of a Canadian Facility BA Rate Loan, on the
last day of the applicable Interest Period for each Canadian Facility
BA Rate Loan and, if the Interest Period extends for more than three
months, at intervals of three months after the first day of the
Interest Period and upon payment in full of the principal amount of
each such Loan.
4.03 Payment of Principal. Except as set forth in Section 4.13 with
respect to Canadian Facility Term Loans, (i) the principal amount of each
Canadian Facility Loan advanced under the Canadian Facility Full Maturity
Tranche shall be due and payable to the Canadian Facility Agent for the benefit
of the Canadian Facility Lenders in full on the Total Facility Termination Date
and (ii) the
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principal amount of each Canadian Facility Loan advanced under the Canadian
Facility Renewable Tranche shall be due and payable to the Canadian Facility
Agent for the benefit of the Canadian Facility Lenders in full on the Canadian
Facility Renewable Tranche Termination Date. The principal amount of any
Canadian Facility Base Rate Loan may be prepaid in whole or in part at any time.
The principal amount of any Canadian Facility BA Rate Loan may be prepaid only
at the end of the applicable Interest Period unless the Canadian Facility
Borrower shall pay to the Canadian Facility Agent for the account of the
Canadian Facility Lenders the additional amount, if any, required under Section
6.05. All prepayments of Canadian Facility Loans made by the Canadian Facility
Borrower shall be in the amount of (i) at least CAN $2,000,000 or (ii) the
amount equal to all Canadian Facility Outstandings, or (iii) such other amount
as necessary to comply with Section 4.01(a) or 4.07.
4.04 Manner of Payment.
(a) Each payment of principal (including any prepayment) and payment of
interest in respect of Canadian Facility Loans, and any other amount required to
be paid to the Canadian Facility Lenders with respect to the Canadian Facility
Loans, shall be made in Canadian Dollars to the Canadian Facility Agent at its
Principal Office, for the account of each Canadian Facility Lender's Applicable
Lending Office. Each such payment shall be made in Same Day Funds before 12:00
noon (Toronto, Canada time) on the date such payment is due. The Canadian
Facility Agent may, but shall not be obligated to, debit the amount of any such
payment which is not made by such time to any ordinary deposit account, if any,
of the Canadian Facility Borrower with the Canadian Facility Agent. The Canadian
Facility Borrower shall give the Canadian Facility Agent prior telephonic notice
of any payment of principal, such notice to be given by not later than 10:00
A.M. (Toronto, Canada time) one (1) Business Day prior to the date of such
payment.
(b) The Canadian Facility Agent shall deem any payment by or on behalf
of the Canadian Facility Borrower hereunder that is not made both (i) in
Canadian Dollars and in Same Day Funds and (ii) prior to 12:00 noon (Toronto,
Canada time) to be a non-conforming payment. Any such payment shall not be
deemed to be received by the Canadian Facility Agent until the later of (x) the
time such funds become available funds and (y) the next Business Day. The
Canadian Facility Agent shall give prompt telephonic notice to the applicable
Authorized Representative and each of the Canadian Facility Lenders (confirmed
in writing) if any payment is non-conforming. Any non-conforming payment may
constitute or become a Default or Event of Default in accordance with the terms
of Section 11.01(a) and 11.01(b). Interest shall continue to accrue on any
principal as to which a non-conforming payment is made until such funds become
available funds (but in no event less than the period from the date of such
payment to the next succeeding Business Day) at the Default or the maximum rate
permitted by applicable law, whichever is lower, from the date such amount was
due and payable until the date such amount is paid in full.
(c) In the event that any payment hereunder or under the Canadian
Facility Loans which bear interest at the Canadian Facility Base Rate becomes
due and payable on a day other than a Business Day, then such due date shall be
extended to the next succeeding Business Day; provided that interest shall
continue to accrue during the period of any such extension.
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4.05 Evidence of Indebtedness. The Canadian Facility Borrower hereby
authorizes each Canadian Facility Lender and the Canadian Facility Agent to
record, from time to time, in its records, the date and amount of each Canadian
Facility Loan; the interest rates payable by the Canadian Facility Borrower in
respect of each Canadian Facility Loan and any Interest Period applicable
thereto; the dates and amounts of all payments received by such Canadian
Facility Lender on account of principal, interest and fees; and the amount of
all the Canadian Facility Loans which remain payable by the Canadian Facility
Borrower to such Canadian Facility Lender. All amounts and other information so
recorded shall be prima facie evidence thereof. The failure to record, or any
error in recording, any such amount or other information shall not limit or
impair the obligations of the Canadian Facility Borrower hereunder or under any
Loan Document.
4.06 Pro Rata Payments. Except as otherwise provided herein, (a) each
payment on account of the principal of and interest on the Canadian Facility
Loans and the fees described in Section 4.09 hereof shall be made to the
Canadian Facility Agent for the account of the Canadian Facility Lenders pro
rata based on their Applicable Fronting Percentages for the Canadian Facility,
(b) all payments to be made by the Canadian Facility Borrower for the account of
each of the Canadian Facility Lenders on account of principal, interest and fees
shall be made without diminution, set-off, recoupment, counterclaim or, except
as set forth in Section 6.06(a), deduction, and (c) the Canadian Facility Agent
in all other cases will promptly distribute payments received to the Canadian
Facility Lenders. Notwithstanding the foregoing, in the event any Canadian
Facility Lender shall not be able to make a Canadian Facility BA Rate Loan under
the circumstances provided in Section 6.01 or 6.03, interest shall be allocated
to such Canadian Facility Lender according to the interest rate payable to such
Canadian Facility Lender as set forth in Section 6.04.
4.07 Reductions. The Canadian Facility Borrower shall, by notice from
an Authorized Representative, have the right from time to time (but not more
frequently than once during each fiscal quarter), upon not less than ten (10)
Business Days' written notice to the Canadian Facility Agent, effective upon
receipt, to reduce the Total Canadian Facility Commitment. The Canadian Facility
Agent shall give each Canadian Facility Lender, within one (1) Business Day,
telefacsimile notice, or telephonic notice (confirmed in writing), of such
reduction. Each such reduction shall be in the aggregate amount of CAN
$5,000,000 or such greater amount which is in an integral multiple of CAN
$5,000,000 or the entire remaining Total Canadian Facility Commitment, shall
permanently reduce the Total Canadian Facility Commitment and shall result in a
pro rata reduction of both the Canadian Facility Full Maturity Tranche
Commitment and the Canadian Facility Renewable Tranche Commitment, if such
Canadian Facility Renewable Tranche Commitment remains outstanding at the time
of such reduction. No such reduction shall result in the payment of any Canadian
Facility BA Rate Loan other than on the last day of the Interest Period of such
Loan unless such prepayment is accompanied by amounts due, if any, under Section
6.05. Each reduction of the Total Canadian Facility Commitment shall be
accompanied by payment of the Canadian Facility Loans to the extent that the (i)
Canadian Facility Outstandings exceed the Total Canadian Facility Commitment,
(ii) the Canadian Facility Renewable Tranche Outstandings exceed the Canadian
Facility Renewable Tranche Commitment or (iii) the Canadian Facility Full
Maturity Tranche Outstandings exceed the Canadian Facility Full Maturity Tranche
Commitment, in each case after giving effect to such reduction, together with
accrued and unpaid interest on the amounts prepaid.
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4.08 Conversions and Elections of Subsequent Interest Periods. Provided
that no Default or Event of Default shall have occurred and be continuing and
subject to the limitations set forth below and in Article VI hereof, the
Canadian Facility Borrower may request a Conversion or Continuation provided
that:
(a) the proceeds are used to retire the outstanding Canadian
Facility Loan (the "Outstanding Loan");
(b) the Conversion or Continuance would otherwise be a
permitted Canadian Facility Advance hereunder and the Canadian Facility
Borrower complies with each provision hereof relative to the obtaining
of a Canadian Facility Advance;
(c) the aggregate principal amount of the Conversion or
Continuance is not greater than the Outstanding Loan plus accrued
interest in the case of Canadian Facility BA Rate Loans rounded up to
the nearest CAN $100,000; and
(d) each Conversion or Continuance is made contemporaneously
with the retirement of the Outstanding Loan.
Notice of any such Conversions or Continuation shall be effected by receipt of
an appropriate Borrowing Notice and shall specify the effective date of such
Conversion or Continuation and the Interest Period to be applicable to the
Canadian Facility Loan as Continued or Converted and the Outstanding Loan to be
retired. Each Continuation and Conversion pursuant to this Section 4.08 shall be
subject to the limitations on Canadian Facility BA Rate Loans set forth in the
definition of "Interest Period" herein and in Sections 4.01 and 4.03 and Article
VI hereof. All such Continuations or Conversions of Canadian Facility Loans
shall be effected pro rata based on the Applicable Fronting Percentages of the
Canadian Facility Lenders for the Canadian Facility.
4.09 Facility Fee. For the period beginning on the Closing Date and
ending on the Total Facility Termination Date in the case of the Canadian
Facility Full Maturity Tranche, and on the Canadian Facility Renewable Tranche
Termination Date in the case of the Canadian Facility Renewable Tranche, the
Company agrees to pay to each Lender at its office in the United States so
designated thereby based on such Lender's Applicable Commitment Percentage, (a)
a Facility Fee equal to the Applicable Margin for Facility Fees with respect to
the Canadian Facility Full Maturity Tranche times the Canadian Facility Full
Maturity Tranche Commitment, and (b) a Facility Fee equal to the Applicable
Margin for Facility Fees with respect to the Canadian Facility Renewable Tranche
times the Canadian Facility Renewable Tranche Commitment. Such payments of
Facility Fees provided for in this Section 4.09 shall be due and payable
quarterly in arrears on the last Business Day of each March, June, September and
December of each year beginning September 30, 1998 to and on the Total Facility
Termination Date in the case of the Canadian Facility Full Maturity Tranche and
on the Canadian Facility Renewable Tranche Termination Date in the case of the
Canadian Facility Renewable Tranche. Notwithstanding the foregoing, so long as
any Canadian Facility Fronting Lender fails to make available any portion of its
Canadian Facility Commitment when properly requested by the Canadian Facility
Borrower, such Lender shall not be entitled to receive payment of its pro rata
share of such Facility Fees until such Lender shall make available such portion.
Such
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Facility Fees shall be calculated on the basis of a year of 360 days for the
actual number of days elapsed.
4.10 Deficiency Advances. No Canadian Facility Lender shall be
responsible for any default of any other Canadian Facility Lender in respect to
such other Canadian Facility Lender's obligation to make any Canadian Facility
Loan hereunder nor shall the Canadian Facility Fronting Commitment of any
Canadian Facility Lender or the Canadian Facility Commitment of any Lender be
increased as a result of such default of any other Canadian Facility Lender.
Without limiting the generality of the foregoing, in the event any Canadian
Facility Lender shall fail to advance funds to the Canadian Facility Borrower as
herein provided, the Canadian Facility Agent may in its discretion, but shall
not be obligated to, make a Canadian Facility Advance hereunder as a Canadian
Facility Lender of all or any portion of such amount or amounts (each, a
"deficiency advance") and shall thereafter be entitled to payments of principal
of and interest on such deficiency advance in the same manner and at the same
interest rate or rates to which such other Canadian Facility Lender would have
been entitled had it made such advance hereunder; provided that, upon payment to
the Canadian Facility Agent from such other Canadian Facility Lender of the
entire outstanding amount of each such deficiency advance, together with accrued
and unpaid interest thereon, from the most recent date or dates interest was
paid to the Canadian Facility Agent by the Canadian Facility Borrower on each
Canadian Facility Loan comprising the deficiency advance, at the interest rate
per annum equal to the Canadian Overnight Rate, then such payment shall be
credited against the applicable Canadian Facility Outstanding owing to the
Canadian Facility Agent in full payment of such deficiency advance and the
Canadian Facility Borrower shall be deemed to have borrowed the amount of such
deficiency advance from such other Canadian Facility Lender as of the most
recent date or dates, as the case may be, upon which any payments of interest
were made by the Canadian Facility Borrower thereon.
4.11 Use of Proceeds. The proceeds of the Canadian Facility Loans made
pursuant to the Canadian Facility hereunder shall be used by the Canadian
Facility Borrower to repay and terminate the Prior Canadian Facility, to finance
capital expenditures and Permitted Acquisitions and for other working capital
and general corporate needs of the Canadian Facility Borrower.
4.12 Canadian Facility Extension.
(a) With the unanimous consent of all Lenders under the Total
Facilities, at each Canadian Facility Renewable Tranche Extension Date the
Canadian Facility Borrower can elect to extend the Canadian Facility Renewable
Tranche Termination Date for an additional period of 364 days with respect to
the Unutilized Canadian Facility Renewable Tranche Commitment as at such
Canadian Facility Renewable Tranche Extension Date; provided, however, that in
no event shall the Canadian Facility Renewable Tranche Termination Date be
extended beyond the Total Facility Termination Date.
(b) The Canadian Facility Borrower shall notify the Lenders of its
request for such an extension by delivering to the Canadian Facility Agent and
the Global Agent notice of such request signed by an Authorized Representative
not more than one hundred fifty (150) days nor less than ninety (90) days prior
to the applicable Canadian Facility Renewable Tranche Extension Date. Notice of
receipt of such request shall be provided by the Canadian Facility
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Agent to the Canadian Facility Lenders and to each other Facility Agent, who
shall in turn provide notice of such request to the respective Lenders in such
Facility. The Global Agent shall notify the Canadian Facility Borrower in
writing within sixty (60) days of its receipt of such request for extension of
the decision of the Lenders. Failure by any Lender to respond to a request for
an extension shall constitute a refusal of such Lender to give its consent to
such extension, and the Canadian Facility Renewable Tranche Termination Date
shall not be extended. Failure by the Global Agent to give such notice to the
Canadian Facility Borrower as a result of not receiving the consent of all
Lenders to such extension shall constitute refusal by the Lenders to extend the
Canadian Facility Renewable Tranche Termination Date.
(c) If on any Canadian Facility Renewable Tranche Extension Date the
Canadian Facility Borrower does not so elect to extend the Canadian Facility
Renewable Tranche Termination Date then in effect, or if all Lenders under the
Total Facilities do not unanimously consent to such extension, then as of such
Canadian Facility Renewable Tranche Termination Date, (i) in addition to any
reduction required under Section 4.13 hereof, the Total Canadian Facility
Commitment as at such date shall be permanently reduced by an amount equal to
the Canadian Facility Unutilized Renewable Tranche Commitment as at such date,
(ii) the Canadian Facility Renewable Tranche Commitment shall be reduced to
zero, and (iii) subject to the provisions of Section 4.13 hereof, all Canadian
Facility Renewable Tranche Outstandings shall be due and payable in full.
4.13 Canadian Term Loan Option.
(a) At each Canadian Facility Renewable Tranche Extension Date, the
Canadian Facility Borrower can elect to convert any or all Canadian Facility
Renewable Tranche Outstandings as of such Canadian Facility Renewable Tranche
Extension Date into a term loan on such date in the original principal amount
equal to such Canadian Facility Renewable Tranche Outstandings. Canadian
Facility Loans so converted by the Canadian Facility Borrower in accordance with
this Section 4.13 shall be referred to as the "Canadian Facility Term Loans."
The Canadian Facility Term Loans shall be repaid in equal quarterly installments
on the last Business Day of each March, June, September and December commencing
with the first such date after the most recent Canadian Facility Renewable
Tranche Extension Date and continuing until and including a final payment on the
Total Facility Termination Date. The Canadian Facility Term Loans may be
comprised of Canadian Facility Base Rate Loans and Canadian Facility BA Rate
Loans as the Canadian Facility Borrower may elect in accordance with the
provisions of this Article IV. The Canadian Facility Term Loans shall bear
interest on the same terms as the Canadian Facility Loans prior to the
conversion to Canadian Facility Term Loans until the Continuation or Conversion
thereof pursuant to Section 4.08 hereof. Amounts repaid or prepaid on the
Canadian Facility Term Loans may not be reborrowed, and the Total Canadian
Facility Commitment shall be permanently reduced by any such amounts.
(b) If on any Canadian Facility Renewable Tranche Extension Date the
Canadian Facility Borrower does not so elect to convert all or a portion of its
Canadian Facility Renewable Tranche Outstandings as of such date to Canadian
Facility Term Loans as described in (a) above, then on the Canadian Facility
Renewable Tranche Termination Date then in effect, (i) all Canadian Facility
Renewable Tranche Outstandings as of such date which are not so converted shall
be due and payable in full, and (ii) in addition to any reduction required under
Section 4.12 hereof, the Total Canadian
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Facility Commitment as at such Canadian Facility Renewable Tranche Extension
Date shall be permanently reduced by an amount equal to the Canadian Facility
Renewable Tranche Outstandings as at such date which are not so converted.
4.14 Participations. On the Closing Date and each day thereafter until
the Total Facility Termination Date, each Lender (including a Canadian Facility
Lender if necessary) will be deemed to have absolutely, irrevocably and
unconditionally purchased from each Canadian Facility Lender a Participation in
Canadian Facility Outstandings owing to such Canadian Facility Lender in an
amount such that, after such purchase, each Lender will have a Facility Credit
Exposure under the Canadian Facility equal in amount to its Applicable
Commitment Percentage times the Canadian Facility Outstandings (referred to as
the "Facility Participation Amount" for such Lender in the Canadian Facility).
Each such Participation of each Lender in the Canadian Facility shall be funded
in accordance with Section 11.07.
4.15 Maximum Rate of Return. Notwithstanding any provision to the
contrary contained in this Agreement, in no event shall the aggregate "interest"
(as defined in Section 347 of the Criminal Code, Revised Statutes of Canada,
1985, C. 46 as the same may be amended, replaced or re-enacted from time to
time) payable under this Agreement exceed the effective annual rate of interest
on the "credit advanced" (as defined in that section) under this Agreement
lawfully permitted under that section and, if any payment, collection or demand
pursuant to this Agreement in respect of "interest" (as defined in that section)
is determined to be contrary to the provisions of that section, such payment,
collection or demand shall be deemed to have been made by mutual mistake of the
Canadian Facility Borrower and the Canadian Facility Lenders and the amount of
such payment or collection shall be refunded to the Canadian Facility Borrower;
for purposes of this Agreement the effective annual rate of interest shall be
determined in accordance with generally accepted actuarial practices and
principles over the term of the applicable credit advanced on the basis of
annual compounding of the lawfully permitted rate of interest and, in the event
of dispute, a certificate of a Fellow of the Canadian Institute of Actuaries
appointed by the Canadian Facility Agent will be conclusive for the purposes of
such determination.
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ARTICLE V
The Australian Facility
5.01 Advances
(a) Commitment. Subject to the terms and conditions of this Agreement,
each Australian Facility Lender severally agrees to make, on behalf of all the
Lenders, Australian Facility Advances in Australian Dollars or New Zealand
Dollars (as specified in a Borrowing Notice) to the Australian Facility Borrower
requesting such Australian Facility Advance, as the case may be, as specified in
such Borrowing Notice, from time to time from the Closing Date until the Total
Facility Termination Date, on a pro rata basis as to the total borrowing
requested by such Australian Facility Borrower on any day determined by such
Australian Facility Lender's Applicable Fronting Percentage for the Australian
Facility, up to but not exceeding (i) in the case of Advances in Australian
Dollars, the Australian Dollar Fronting Commitment of such Australian Facility
Lender, and (ii) in the case of Advances in New Zealand Dollars, the New Zealand
Dollar Fronting Commitment of such Australian Facility Lender, and each Lender
shall have a Participation in each such Australian Facility Advance pursuant to
Section 5.13 equal in amount to its Applicable Commitment Percentage times such
Australian Facility Advance; provided, however, that the Australian Facility
Lenders will not be required and shall have no obligation to make any Australian
Facility Advance (A) so long as a Default or an Event of Default has occurred
and is continuing or (B) if the Lenders have accelerated the maturity of the
Obligations as a result of an Event of Default; provided further, however, that
immediately after giving effect to each such Australian Facility Advance, (x)
the Australian Facility Outstandings shall not exceed the Total Australian
Facility Commitment and (y) the New Zealand Dollar Outstandings shall not exceed
the Total New Zealand Dollar Commitment. Within such limits, the Australian
Facility Borrowers may borrow, repay and reborrow Australian Facility Loans
hereunder, on a Business Day, from the Closing Date until, but (as to borrowings
and reborrowings) not including, the Total Facility Termination Date; provided,
however, that the aggregate principal amount outstanding to any Australian
Facility Borrower shall not at any time exceed its Australian Facility Maximum
Amount; and provided further, however, that (i) no Offshore Rate Loan shall be
made which has an Interest Period that extends beyond the Total Facility
Termination Date and (ii) each Offshore Rate Loan may be repaid only on the last
day of the Interest Period with respect thereto, unless such prepayment is
accompanied by the additional payment, if any, due under Section 6.05. The
Australian Facility Borrowers agree that if at any time the Australian Facility
Outstandings shall exceed the Total Australian Facility Commitment or the New
Zealand Dollar Outstandings shall exceed the Total New Zealand Dollar
Commitment, the Australian Facility Borrowers shall immediately repay a
principal amount of the outstanding Australian Facility Loans such that, as a
result of such reduction, the Total Australian Facility Commitment shall equal
or exceed the Australian Facility Outstandings and the Total New Zealand Dollar
Commitment shall equal or exceed the New Zealand Dollar Outstandings.
(b) Amounts, Advances and Rate Selection.
(i) The principal amount outstanding on any Australian
Facility Loan shall be recorded in the Australian Facility Agent's
records in Australian Dollars in the case of an
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Australian Facility Advance of Australian Dollars and in New Zealand
Dollars in the case of an Australian Facility Advance of New Zealand
Dollars, in each case based on the amount of any Australian Facility
Advance as reduced from time to time by the amount of any principal
payments with respect to such Australian Facility Advance. In the case
of an Australian Facility Advance of New Zealand Dollars, the
Australian Facility Agent shall also record the principal amount
outstanding on any such Australian Facility Loan in Australian Dollars,
based on the Australian Dollar Equivalent Amount of such Australia
Facility Advance determined based on the Spot Rate of Exchange as of
the date of such Advance, as reduced from time to time by any principal
payments with respect thereto. In the event an Australian Facility Loan
is Continued or Converted pursuant to Section 5.08, such election shall
be treated as an Australian Facility Advance in the Applicable Currency
of such Loan for purposes of this Section 5.01, with the Australian
Dollar Equivalent Amount of the principal amount of any such Loan in
New Zealand Dollars determined based on the Spot Rate of Exchange as of
the date of such Continuation or Conversion. The Australian Facility
Agent shall adjust its books to reflect the new Australian Dollar
Equivalent Amount of such Australian Facility Loan, and in the event
that such adjustment would cause the Australian Facility Outstandings
to exceed the Total Australian Facility Commitment, or the New Zealand
Dollar Outstandings to exceed the Total New Zealand Dollar Commitment,
the Australian Facility Borrowers shall, immediately on the effective
date of such Continuation or Conversion, repay the portion of such
Continued or Converted Loan (applying the new Spot Rate of Exchange)
necessary to ensure that thereafter the Total Australian Facility
Commitment shall equal or exceed the Australian Facility Outstandings
and the Total New Zealand Dollar Commitment shall equal or exceed the
New Zealand Dollar Outstandings. There shall be no more than four (4)
Offshore Facility Loans outstanding at any one time under the
Australian Facility.
(ii) Each Australian Facility Loan and each Continuation and
Conversion under Section 5.08 shall be (A) in the case of Offshore Rate
Loans, in an amount not less than AUS $5,000,000 (or the New Zealand
Dollar Equivalent Amount thereof if in New Zealand Dollars), and, if
greater, in integral multiples of AUS $500,000 (or the New Zealand
Dollar Equivalent Amount thereof if in New Zealand Dollars), and (B) in
the case of Australian Facility Base Rate Loans, in an amount not less
than AUS $5,000,000 (or the New Zealand Dollar Equivalent Amount
thereof if in New Zealand Dollars), and, if greater, in integral
multiples of AUS $500,000 (or the New Zealand Dollar Equivalent Amount
thereof if in New Zealand Dollars).
(iii) For each Australian Facility Advance an Authorized
Representative shall give the Australian Facility Agent at least (A)
three (3) Business Days' irrevocable telefacsimile notice prior to
11:00 A.M. (Sydney, Australia time) of each Offshore Rate Loan
representing a borrowing or Continuation or Conversion hereunder, and
(B) three (3) Business Days' irrevocable telefacsimile notice prior to
11:00 A.M. (Sydney, Australia time) of each Australian Facility Base
Rate Loan representing a borrowing or Continuation or Conversion
hereunder. Each such notice shall be in the form of a Borrowing Notice
in the form attached hereto as Exhibit D-4, which shall be effective
upon receipt by the Australian Facility Agent, and shall specify the
Type of Loan, whether the Loan is to be made in Australian Dollars or
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New Zealand Dollars, the amount of the Australian Facility Advance to
be made, the date of borrowing and the Interest Period (if an Offshore
Rate Loan) to be used in the computation of interest. Neither the
Australian Facility Agent nor any Australian Facility Lender shall
incur any liability to any Australian Facility Borrower in acting upon
any notice referred to above which the Australian Facility Agent
believes in good faith to have been given by an Authorized
Representative of such Australian Facility Borrower or for otherwise
acting in good faith, and upon funding of Australian Facility Loans by
any Australian Facility Lender in accordance with this Agreement
pursuant to any such notice, such Australian Facility Borrower shall
have effected Australian Facility Loans hereunder. A Borrowing Notice
for an Offshore Rate Loan shall be irrevocable, and Australian Facility
Borrower giving such notice shall be bound to make a borrowing in
accordance therewith, unless such Australian Facility Borrower pays to
the Australian Facility Lenders such amounts as may be due under
Section 6.05 for failure of a borrowing of an Offshore Rate Loan to
occur on the date specified therefor in a Borrowing Notice. The
duration of the initial Interest Period for each Australian Facility
Loan shall be as specified in the initial Borrowing Notice. The
Australian Facility Borrowers shall have the option to elect the
duration of subsequent Interest Periods and to Continue or Convert the
Australian Facility Loans in accordance with Section 5.08. If the
Australian Facility Agent does not receive a notice of election of
duration of an Interest Period or of the Conversion of a Loan by the
time prescribed hereby and by Section 5.08, the applicable Australian
Facility Borrower shall be deemed to have elected to Convert such Loan
to or Continue such Loan as an Australian Facility Base Rate Loan until
such Australian Facility Borrower notifies the Australian Facility
Agent in accordance with Section 5.08.
(iv) Notice of receipt of each Borrowing Notice in respect of
Australian Facility Loans, together with the amount of each Australian
Facility Lender's portion of an Advance requested thereunder and the
applicable interest rate, shall be provided by the Australian Facility
Agent to each Australian Facility Lender by telefacsimile with
reasonable promptness, but (provided the Australian Facility Agent
shall have received such notice by 11:00 A.M. (Sydney, Australia time))
not later than 2:00 P.M. (Sydney, Australia time) on the same day as
the Australian Facility Agent's receipt of such notice from the
applicable Australian Facility Borrower.
(v) Each Australian Facility Lender shall, pursuant to the
terms and subject to the conditions of this Agreement, not later than
12:00 noon (Sydney, Australia time) on the date specified for such
Australian Facility Advance, make the amount of the Australian Facility
Advance to be made by it on such day available to the applicable
Australian Facility Borrower by depositing or transferring the proceeds
thereof in Australian Dollars or New Zealand Dollars, as requested, and
in Same Day Funds to the Australian Facility Agent at its Principal
Office. The amount so received by the Australian Facility Agent shall,
subject to the terms of this Agreement, be made available to the
applicable Australian Facility Borrower by deposit of the proceeds to
an account of such Australian Facility Borrower maintained at the
Principal Office or otherwise as shall be directed in the applicable
Borrowing Notice.
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5.02 Payment of Interest.
(a) The Australian Facility Borrowers shall pay interest to the
Australian Facility Agent for the account of each Australian Facility Lender on
the outstanding and unpaid principal amount of each Australian Facility Loan
made by such Australian Facility Lender for the period commencing on the date of
such Australian Facility Loan until such Loan shall be paid, Continued or
Converted, as the case may be, at the then applicable Australian Facility Base
Rate for Australian Facility Base Rate Loans or applicable Offshore Rate for
Offshore Rate Loans, such payments to be made (i) in Australian Dollars with
respect to Australian Facility Loans made in Australian Dollars, and (ii) in New
Zealand Dollars with respect to Australian Facility Loans made in New Zealand
Dollars; provided, however, that if any Event of Default shall have occurred and
be continuing, all amounts outstanding hereunder shall bear interest thereafter
at the Default Rate.
(b) Interest on each Australian Facility Loan shall be computed on the
basis of a year of 365/366 days and calculated for the actual number of days
elapsed. Interest on each Australian Facility Loan shall be paid (i) quarterly
in arrears on the last Business Day of each fiscal quarter, commencing September
30, 1998, for each Australian Facility Base Rate Loan, (ii) on the last day of
the applicable Interest Period for each Offshore Rate Loan and, if the Interest
Period extends for more than three months, also at intervals of three months
after the first day of the Interest Period and (iii) upon payment in full of the
principal of each such Loan. Interest on amounts not paid when due shall be
payable on demand.
5.03 Payment of Principal. The principal amount of each Australian
Facility Loan shall be due and payable to the Australian Facility Agent for the
benefit of each Australian Facility Lender in full on the Total Facility
Termination Date. The principal amount of any Australian Facility Base Rate Loan
may be prepaid in whole or in part at any time. The principal amount of any
Offshore Rate Loan may be prepaid only at the end of the applicable Interest
Period unless the Australian Facility Borrowers shall pay to the Australian
Facility Agent for the account of the Australian Facility Lenders the additional
amount, if any, required under Section 6.05. All prepayments of Australian
Facility Loans made by the Australian Facility Borrowers shall be in the
Applicable Currency of the respective Australian Facility Loan in the amount of
(i) AUS $5,000,000 (or the New Zealand Dollar Equivalent Amount thereof if in
New Zealand Dollars), or (ii) such greater amount which is an integral multiple
of AUS $1,000,000 (or the New Zealand Dollar Equivalent Amount thereof if in New
Zealand Dollars), or (iii) the amount equal to all Australian Facility
Outstandings, or (iv) such other amount as necessary to comply with Section
5.01(a) or 5.07.
5.04 Manner of Payment.
(a) Each payment of principal (including any prepayment) and payment of
interest and fees in respect of Australian Facility Loans, and any other amount
required to be paid to the Australian Facility Lenders with respect to the
Australian Facility Loans, shall be made to the Australian Facility Agent at its
Principal Office, for the account of each Australian Facility Lender's
Applicable Lending Office, to be recorded in Australian Dollars and, if
applicable, New Zealand Dollars, as set forth in Section 5.01(b). Each such
payment shall be made in Applicable Currency of the Australian Facility Loan in
Same Day Funds before 12:00 noon (Sydney, Australia time) on the date such
payment is
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due. The Australian Facility Agent may, but shall not be obligated to, debit the
amount of any such payment which is not made by such time to any ordinary
deposit account, if any, of the applicable Australian Facility Borrower with the
Australian Facility Agent. The Australian Facility Borrowers shall give the
Australian Facility Agent prior telephonic notice of any payment of principal,
such notice to be given by not later than 11:00 A.M. (Sydney, Australia time),
at least three (3) Business Days prior to the date of such payment.
(b) The Australian Facility Agent shall deem any payment by or on
behalf of the Australian Facility Borrowers hereunder that is not made both (i)
in Australian Dollars in the case of Australian Facility Loans made in
Australian Dollars or in New Zealand Dollars in the case of Australian Facility
Loans made in New Zealand Dollars and, in either case, in Same Day Funds and
(ii) prior to 12:00 noon (Sydney, Australia time) to be a non-conforming
payment. Any such payment shall not be deemed to be received by the Australian
Facility Agent until the later of (x) the time such funds become available funds
in the required Applicable Currency and (y) the next Business Day. The
Australian Facility Agent shall give prompt telephonic notice to the applicable
Authorized Representative and each of the Australian Facility Lenders (confirmed
in writing) if any payment is non-conforming. Any non-conforming payment may
constitute or become a Default or Event of Default in accordance with the terms
of Section 11.01(a) and 11.01(b). Interest shall continue to accrue on any
principal as to which a non-conforming payment is made until such funds become
available funds (but in no event less than the period from the date of such
payment to the next succeeding Business Day) at the Default Rate or the maximum
rate permitted by applicable law, whichever is lower, from the date such amount
was due and payable until the date such amount is paid in full.
(c) In the event that any payment hereunder becomes due and payable on
a day other than a Business Day, then such due date shall be extended to the
next succeeding Business Day unless otherwise provided under clause (ii) of the
definition of "Interest Period"; provided that interest shall continue to accrue
during the period of any such extension.
5.05 Evidence of Indebtedness. Each Australian Facility Borrower hereby
authorizes each Australian Facility Lender and the Australian Facility Agent to
record, from time to time, in its records, the date and amount of each
Australian Facility Loan; the interest rates payable by the applicable
Australian Facility Borrower in respect of each Australian Facility Loan and any
Interest Period applicable thereto; the dates and amounts of all payments
received by such Australian Facility Lender on account of principal, interest
and fees; and the amount of all the Australian Facility Loans which remain
payable by the Australian Facility Borrowers to such Australian Facility Lender.
All amounts and other information so recorded shall be prima facie evidence
thereof. The failure to record, or any error in recording, any such amount or
other information shall not limit or impair the obligations of the Australian
Facility Borrowers hereunder or under any Loan Document.
5.06 Pro Rata Payments. Except as otherwise provided herein, (a) each
payment on account of the principal of and interest on the Australian Facility
Loans and the fees described in Section 5.09 hereof shall be made to the
Australian Facility Agent for the account of the Australian Facility Lenders pro
rata based on their Applicable Fronting Percentages for the Australian Facility,
(b) all payments to be made by the Australian Facility Borrowers for the account
of each of the
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Australian Facility Lenders on account of principal, interest and fees shall be
made without diminution, set-off, recoupment, counterclaim or, except as set
forth in Section 6.06(a), deduction, and (c) the Australian Facility Agent will
promptly distribute payments received to the Australian Facility Lenders.
Notwithstanding the foregoing, in the event any Australian Facility Lender shall
not be able to make an Offshore Rate Loan under the circumstances provided in
Section 6.01 or 6.03, interest shall be allocated to such Australian Facility
Lender according to the interest rate payable to such Australian Facility Lender
as set forth in Section 6.04.
5.07 Reductions. The Australian Facility Borrowers shall, by notice
from an Authorized Representative, have the right from time to time (but not
more frequently than once during each fiscal quarter), upon not less than ten
(10) Business Days' written notice to the Australian Facility Agent, effective
upon receipt, to reduce the Total Australian Facility Commitment. The Australian
Facility Agent shall give each Australian Facility Lender, within two (2)
Business Days, telefacsimile notice, or telephonic notice (confirmed in
writing), of such reduction. Each such reduction shall be in the aggregate
amount of AUS $5,000,000 or such greater amount which is in an integral multiple
of AUS $1,000,000, or the entire remaining Total Australian Facility Commitment,
and shall permanently reduce the Total Australian Facility Commitment. No such
reduction shall result in the payment of any Offshore Rate Loan other than on
the last day of the Interest Period of such Loan unless such prepayment is
accompanied by amounts due, if any, under Section 6.05. Each such reduction of
the Total Australian Facility Commitment shall be accompanied by payment of the
principal amount of the Australian Facility Loans to the extent that the
Australian Facility Outstandings exceed the Total Australian Facility Commitment
or the New Zealand Dollar Outstandings exceed the Total New Zealand Dollar
Commitment, in each case after giving effect to such reduction, together with
accrued and unpaid interest on the amounts prepaid. Any reduction of the Total
Australian Facility Commitment hereunder shall result, ipso facto, in a pro rata
reduction of the Total New Zealand Dollar Commitment so that, as reduced, the
Australian Dollar Equivalent Amount of the Total New Zealand Dollar Commitment
shall at all times remain equal to 10% of the Total Australian Facility
Commitment.
5.08 Conversions and Elections of Subsequent Interest Periods. Subject
to the limitations set forth below and in Article VI hereof, the Australian
Facility Borrowers may:
(a) upon notice to the Australian Facility Agent on or before 11:00
A.M. (Sydney, Australia time) on any Business Day, Convert all or a part of
Offshore Rate Loans to Australian Facility Base Rate Loans under the Australian
Facility on the last day of the Interest Period for such Offshore Rate Loans;
and
(b) provided that no Default or Event of Default shall have occurred
and be continuing, upon five (5) Business Days' notice to the Australian
Facility Agent prior to 11:00 A.M. (Sydney, Australia time):
(i) elect a subsequent Interest Period for all or a portion of
Offshore Rate Loans under the Australian Facility to begin on the last
day of the then current Interest Period for such Offshore Rate Loans;
and
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(ii) Convert Australian Facility Base Loans to Offshore Rate
Loans under the Australian Facility on any Business Day.
Notice of any such Continuations or Conversions shall be effected by
receipt of an appropriate Borrowing Notice and shall specify the effective date
of such Continuation or Conversion and the Interest Period to be applicable to
the Australian Facility Loan as Continued or Converted. Each Continuation and
Conversion pursuant to this Section 5.08 shall be subject to the limitations on
Offshore Rate Loans set forth in the definition of "Interest Period" herein and
in Section 5.01 and 5.03 and Article VI hereof. All such Continuations or
Conversions of Australian Facility Loans shall be effected pro rata based on the
Applicable Fronting Percentages of the Australian Facility Lenders for the
Australian Facility and shall be in the same currency as the original such Loan.
5.09 Facility Fee. For the period beginning on the Closing Date and
ending on the Total Facility Termination Date, the Company agrees to pay to each
Lender at its office in the United States so designated thereby based on such
Lender's Applicable Commitment Percentage, a Facility Fee equal to the
Applicable Margin for Facility Fees times the Total Australian Facility
Commitment. Such payments of Facility Fees provided for in this Section 5.09
shall be due and payable quarterly in arrears on the last Business Day of each
March, June, September and December beginning September 30, 1998 to and on the
Total Facility Termination Date. Notwithstanding the foregoing, so long as any
Australian Facility Lender fails to make available any portion of its Australian
Facility Fronting Commitment when properly requested by an Australian Facility
Borrower, such Lender shall not be entitled to receive payment of its pro rata
share of such Facility Fee until such Lender shall make available such portion.
Such Facility Fee shall be calculated on the basis of a year of 365/366 days for
the actual number of days elapsed.
5.10 Deficiency Advances. No Australian Facility Lender shall be
responsible for any default of any other Australian Facility Lender in respect
to such other Australian Facility Lender's obligation to make any Australian
Facility Loan hereunder nor shall the Australian Facility Fronting Commitment of
any Australian Facility Lender or the Australian Facility Commitment of any
Lender be increased as a result of such default of any other Australian Facility
Lender. Without limiting the generality of the foregoing, in the event any
Australian Facility Lender shall fail to advance funds to an Australian Facility
Borrower as herein provided, the Australian Facility Agent may in its
discretion, but shall not be obligated to, make an Australian Facility Advance
hereunder as an Australian Facility Lender of all or any portion of such amount
or amounts (each, a "deficiency advance") and shall thereafter be entitled to
payments of principal of and interest on such deficiency advance in the same
manner and at the same interest rate or rates to which such other Australian
Facility Lender would have been entitled had it made such advance; provided
that, upon payment to the Australian Facility Agent from such other Australian
Facility Lender of the entire outstanding amount of each such deficiency
advance, together with accrued and unpaid interest thereon, from the most recent
date or dates interest was paid to the Australian Facility Agent by the
applicable Australian Facility Borrower on each Australian Facility Loan
comprising the deficiency advance, at the interest rate per annum equal to the
customary rate set by the Australian Facility Agent for the correction of errors
among banks in Australia for three (3) Business Days and thereafter at the
Australian Facility Base Rate, then such payment shall be credited against the
applicable Australian Facility Outstanding owing to the Australian Facility
Agent in full payment of such deficiency advance and the applicable Australian
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Facility Borrower shall be deemed to have borrowed the amount of such deficiency
advance from such other Australian Facility Lender as of the most recent date or
dates, as the case may be, upon which any payments of interest were made by such
Australian Facility Borrower thereon.
5.11 Use of Proceeds. The proceeds of the Australian Facility Loans
made pursuant to the Australian Facility hereunder shall be used by the
Australian Facility Borrowers to repay and terminate the Prior Australian
Facility, to finance capital expenditures and Permitted Acquisitions and for
other working capital and general corporate needs of the Australian Facility
Borrowers.
5.12 One Loan.
(a) Subject to subsection (c) below, all Australian Facility Loans and
Australian Facility Advances by the Australian Facility Lenders to any
Australian Facility Borrower shall constitute the joint and several general
obligation of each of the Australian Facility Borrowers. Each Australian
Facility Borrower shall be jointly and severally liable to the Australian
Facility Agent and the Australian Facility Lenders for all Obligations hereunder
in respect of the Australian Facility, regardless of whether such Obligations
arise as a result of Australian Facility Advances to such Borrower, it being
stipulated and agreed that Australian Facility Advances hereunder to any
Australian Facility Borrower inure to the benefit of each of the Australian
Facility Borrowers, and that the Australian Facility Lenders are relying on the
joint and several liability of the Australian Facility Borrowers in extending
credit under the Australian Facility.
(b) Subject to subsection (c) below, each Australian Facility Borrower
guarantees to the Australian Facility Lenders the payment in full of all of the
Obligations of the other Australian Facility Borrowers to the Australian
Facility Lenders in respect of Australian Facility and further guarantees the
due performance by each other Australian Facility Borrower of its respective
duties and covenants made in favor of the Australian Facility Agent and the
Australian Facility Lenders hereunder. Each Australian Facility Borrower agrees
that the joint and several liability of the Australian Facility Borrowers shall
not be impaired or affected by any modification, supplement, extension or
amendment of any contract or agreement to which the parties thereto may
hereafter agree, nor by any modification, release or other alteration of any of
the rights of the Australian Facility Agent and the Australian Facility Lenders
with respect to any collateral, nor by any delay, extension of time, renewal,
compromise or other indulgence granted by the Australian Facility Agent and the
Australian Facility Lenders with respect to any of the Obligations, nor by any
other agreements or arrangements whatever with any other Australian Facility
Borrower, any guarantor or any other Person, each Australian Facility Borrower
hereby waiving all notice of any such delay, extension, release, substitution,
renewal, compromise or other indulgence, and hereby consenting to be bound
thereby as fully and effectually as if it had expressly agreed thereto in
advance. The liability of each Australian Facility Borrower hereunder is direct
and unconditional as to all of the Obligations hereunder in respect of the
Australian Facility, and may be enforced without requiring the Australian
Facility Agent or the Australian Facility Lenders first to resort to any other
right, remedy or security; no Australian Facility Borrower shall have any right
of subrogation, reimbursement or indemnity whatsoever, nor any right of recourse
to security for any of the Obligations in respect of the Australian Facility,
unless and until all of said Obligations have been paid in full.
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(c) Notwithstanding subsections (a) and (b) above, the joint and
several liability of each Australian Facility Borrower for, and its obligation
to guarantee payment of, all Obligations of the other Australian Facility
Borrowers in respect of the Australian Facility shall not at any time exceed its
Australian Facility Maximum Amount.
5.13 Participations. On the Closing Date and each day thereafter until
the Total Facility Termination Date, each Lender (including an Australian
Facility Lender if necessary) will be deemed to have absolutely, irrevocably and
unconditionally purchased from each Australian Facility Lender a Participation
in Australian Facility Outstandings owing to such Australian Facility Lender in
an amount such that, after such purchase, each Lender will have a Facility
Credit Exposure under the Australian Facility equal in amount to its Applicable
Commitment Percentage times the Australian Facility Outstandings (referred to as
the "Facility Participation Amount" for such Lender in the Australian Facility).
Each such Participation of each Lender in the Australian Facility shall be
funded in accordance with Section 11.07.
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ARTICLE VI
Changes in Circumstances
6.01 Increased Cost and Reduced Return.
(a) If, after the date hereof, the adoption of any applicable law,
rule, or regulation, or any change in any applicable law, rule, or regulation,
or any change in the interpretation or administration thereof by any
Governmental Authority, central bank, or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender (or its
Applicable Lending Office) with any request or directive (whether or not having
the force of law) of any such Governmental Authority, central bank, or
comparable agency:
(i) shall subject such Lender (or its Applicable Lending
Office) to any tax, duty, or other charge with respect to any Fixed
Rate Loans, any Note, or its obligation to make or to Participate in
Fixed Rate Loans; or shall change the basis of taxation of any amounts
payable to such Lender (or its Applicable Lending Office) under this
Agreement or any Note in respect of any Fixed Rate Loans (other than
taxes imposed on the overall net income of such Lender by the
jurisdiction in which such Lender has its principal office or such
Applicable Lending Office);
(ii) shall impose, modify, or deem applicable any reserve,
special deposit, assessment, compulsory loan, or similar requirement
(other than the Applicable Reserve Requirement utilized in the
determination of the Eurodollar Rate or the Offshore Rate) relating to
any extensions of credit or other assets of, or any deposits with or
other liabilities or commitments of, such Lender (or its Applicable
Lending Office), including the Applicable Facility Commitments or
Applicable Fronting Commitments of such Lender hereunder; or
(iii) shall impose on such Lender (or its Applicable Lending
Office) or the London or applicable offshore interbank market any other
condition affecting this Agreement or any Note or any of such
extensions of credit or liabilities or commitments;
and the result of any of the foregoing is to increase the cost to such Lender
(or its Applicable Lending Office) of making, Converting into, Continuing, or
maintaining or participating in any Fixed Rate Loan or to reduce any sum
received or receivable by such Lender (or its Applicable Lending Office) under
this Agreement or any Note with respect to any Fixed Rate Loan, then each
Borrower in the Facility or Facilities in which such Lender has made, or is
obligated to make, such Fixed Rate Loans to which such increased costs relate
shall pay to such Lender on demand such amount or amounts as will compensate
such Lender for such increased cost or reduction. If any Lender requests
compensation by any Borrower under this Section 6.01(a), the applicable Borrower
may, by notice to such Lender (with a copy to the Applicable Facility Agent and
the Global Agent), suspend the obligation of such Lender to make or Continue
Loans of the Type with respect to which such compensation is requested, or to
Convert Loans of any other Type into Loans of such Type, until the event or
condition giving rise to such request ceases to be in effect (in which case the
provisions of
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Section 6.04 shall be applicable); provided that such suspension shall not
affect the right of such Lender to receive the compensation so requested.
(b) If, after the date hereof, any Lender shall have determined that
the adoption of any applicable law, rule, or regulation regarding capital
adequacy or any change therein or in the interpretation or administration
thereof by any Governmental Authority, central bank, or comparable agency
charged with the interpretation or administration thereof, or any request or
directive regarding capital adequacy (whether or not having the force of law) of
any such Governmental Authority, central bank, or comparable agency, has or
would have the effect of reducing the rate of return on the capital of such
Lender or any corporation controlling such Lender as a consequence of such
Lender's obligations hereunder to a level below that which such Lender or such
corporation could have achieved but for such adoption, change, request, or
directive (taking into consideration its policies with respect to capital
adequacy), then from time to time upon demand each Applicable Borrower in any
Facility in which such Lender has made or is obligated to make Loans shall pay
to such Lender such additional amount or amounts as will compensate such Lender
for such reduction.
(c) Each Lender shall promptly notify the Borrowers and the Agents of
any event of which it has knowledge, occurring after the date hereof, which will
entitle such Lender to compensation pursuant to this Section 6.01 and will
designate a different Applicable Lending Office if such designation will avoid
the need for, or reduce the amount of, such compensation and will not, in the
judgment of such Lender, be otherwise disadvantageous to it. Any Lender claiming
compensation under this Section 6.01 shall furnish to the Borrowers and the
Agents a statement setting forth the additional amount or amounts to be paid to
it hereunder which shall be conclusive in the absence of manifest error. In
determining such amount, such Lender may use any reasonable averaging and
attribution methods.
6.02. Limitation on Types of Loans. If on or prior to the first day of
any Interest Period for any Fixed Rate Loan:
(a) the Applicable Facility Agent in the Facility in which
such Fixed Rate Loan is to be made or Continued or Converted determines
(which determination shall be conclusive) that by reason of
circumstances affecting the relevant market, adequate and reasonable
means do not exist for ascertaining the Eurodollar Rate or Offshore
Rate or Canadian Facility BA Rate, as the case may be, for such
Interest Period; or
(b) the Required Fronting Lenders in the Facility in which
such Fixed Rate Loan is to be made or Continued or Converted determine
(which determination shall be conclusive) and notify the Applicable
Facility Agent and the Global Agent that (i) the Eurodollar Rate will
not adequately and fairly reflect the cost to the Lenders in such
Facility of funding Fixed Rate Loans for such Interest Period or (ii)
that the Offshore Rate does not represent, in the case of the UK
Facility Lenders, the effective cost to those Lenders for deposits in
the Applicable Currency of comparable amounts for the applicable
Interest Period or, in the case of the Australian Facility Lenders, the
effective bid rate for bills of exchange of such tenor in Australian
Dollars for such Lenders or (iii) that the Canadian Facility BA Rate
does not
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represent, in the case of the Canadian Facility Lenders, the effective
cost to those Lenders for banker's acceptances of comparable amounts
for the applicable Interest Period;
then the Applicable Facility Agent shall give the Applicable Borrowers prompt
notice thereof specifying the relevant Type of Loans and the relevant amounts or
periods, and so long as such condition remains in effect, the Applicable Lenders
in such Facility or Facilities shall be under no obligation to make additional
Loans of such Type, Continue Loans of such Type, or to Convert Loans of any
other Type into Loans of such Type and the Applicable Borrower shall, on the
last day(s) of the then current Interest Period(s) for the outstanding Loans of
the affected Type, either repay such Loans or Convert such Loans into another
Type of Loan in accordance with the terms of this Agreement.
6.03. Illegality. Notwithstanding any other provision of this
Agreement, in the event that it becomes unlawful for any Lender or its
Applicable Lending Office to make, maintain, or fund any Fixed Rate Loans
hereunder, then such Lender shall promptly notify the Applicable Borrowers in
the Facility or Facilities in which such Lender has made or is obligated to make
such Fixed Rate Loans and such Lender's obligation to make or Continue any Fixed
Rate Loans and to Convert other Types of Loans into such Fixed Rate Loans shall
be suspended until such time as such Lender may again make, maintain, and fund
such Fixed Rate Loans (in which case the provisions of Section 6.04 shall be
applicable).
6.04. Treatment of Affected Loans. If the obligation of any Lender to
make a particular Type of Fixed Rate Loan or to Continue, or to Convert Loans of
any other Type into, Loans of a particular Type shall be suspended pursuant to
Section 6.01 or 6.03 hereof (Loans of such Type being herein called "Affected
Loans" and such Type being herein called the "Affected Type"), such Lender's
Affected Loans shall be automatically Converted into, in the case of the US
Facility, the Canadian Facility or the Australian Facility, a Floating Rate Loan
applicable to the Facility or Facilities in which the Affected Loans were made
or, in the case of the UK Facility, a UK Facility Alternative Rate Loan (each
referred to as "Substitute Base Rate Loans") on the last day(s) of the then
current Interest Period(s) for Affected Loans (or, in the case of a Conversion
required by Section 6.03 hereof, on such earlier date as such Lender may specify
to the Applicable Borrower with a copy to the Applicable Facility Agent and the
Global Agent) and, unless and until such Lender gives notice as provided below
that the circumstances specified in Section 6.01 or 6.03 hereof that gave rise
to such Conversion no longer exist:
(a) to the extent that such Lender's Affected Loans have been
so Converted, all payments and prepayments of principal that would
otherwise be applied to such Lender's Affected Loans shall be applied
instead to its Substitute Base Rate Loans; and
(b) all Loans that would otherwise be made or Continued by
such Lender as Loans of the Affected Type shall be made or Continued
instead as Substitute Base Rate Loans, and all Loans of such Lender
that would otherwise be Converted into Loans of the Affected Type shall
be Converted instead into (or shall remain as) Substitute Base Rate
Loans.
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If such Lender gives notice to the Applicable Borrowers (with a copy to the
Applicable Facility Agent and the Global Agent) that the circumstances specified
in Section 6.01 or 6.03 hereof that gave rise to the Conversion of such Lender's
Affected Loans pursuant to this Section 6.04 no longer exist (which such Lender
agrees to do promptly upon such circumstances ceasing to exist) at a time when
Loans of the Affected Type made by other Lenders are outstanding, such Lender's
Substitute Base Rate Loans shall be automatically Converted, on the first day(s)
of the next succeeding Interest Period(s) for such outstanding Loans of the
Affected Type, to the extent necessary so that, after giving effect thereto, all
Loans held by the Lenders holding Loans of the Affected Type and by such Lender
are held pro rata (as to principal amounts, Types, and Interest Periods) in
accordance with their respective Applicable Fronting Percentage applicable to
the Facility or Facilities in which the Affected Loans were made.
6.05. Compensation. Upon the request of any Lender, each Applicable
Borrower in any Facility in which such Lender has made or is obligated to make
Loans shall pay to such Lender such amount or amounts as shall be sufficient (in
the reasonable opinion of such Lender) to compensate it for any loss, cost, or
expense (including loss of anticipated profits) incurred by it as a result of:
(a) any payment, prepayment, or Conversion of a Fixed Rate
Loan for any reason (including, without limitation, the acceleration of
the Loans pursuant to Section 11.01) on a date other than the last day
of the Interest Period for such Loan; or
(b) any failure by the Applicable Borrower for any reason
(including, without limitation, the failure of any condition precedent
specified in Article VII to be satisfied) to borrow, Convert, Continue,
or prepay a Fixed Rate Loan on the date for such borrowing, Conversion,
Continuation, or prepayment specified in the relevant notice of
borrowing, prepayment, Continuation, or Conversion under this
Agreement.
6.06 Taxes.
(a) Any and all payments by any Borrower to any Lender or any Agent
under this Agreement and any other Loan Document shall be made free and clear
of, and without deduction or withholding for, any Taxes. In addition, each
Borrower shall pay all Other Taxes.
(b) If any Borrower shall be required by law to deduct or withhold any
Taxes, Other Taxes or Further Taxes from or in respect of any sum payable
hereunder to any Lender or any Agent, then:
(i) the sum payable shall be increased as necessary so that,
after making all required deductions and withholdings (including
deductions and withholdings applicable to additional sums payable under
this Section 6.06), such Lender or Agent, as the case may be, receives
and retains an amount equal to the sum it would have received and
retained had no such deductions or withholdings been made;
(ii) such Borrower shall make such deductions and
withholdings;
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(iii) such Borrower shall pay the full amount deducted or
withheld to the relevant taxing authority or other authority in
accordance with applicable law; and
(iv) such Borrower shall also pay to such Lender or Applicable
Facility Agent for the account of such Lender, at the time interest is
paid, Further Taxes in the amount that the respective Lender specifies
as necessary to preserve the after-tax yield the Lender would have
received if such Taxes, Other Taxes or Further Taxes had not been
imposed.
(c) The Company and each Borrower jointly and severally agree to
indemnify and hold harmless each Lender and each Agent for the full amount of
(i) Taxes, (ii) Other Taxes, and (iii) Further Taxes in the amount that the
respective Lender specifies as necessary to preserve the after-tax yield the
Lender would have received if such Taxes, Other Taxes or Further Taxes had not
been imposed, and any liability (including penalties, interest, additions to tax
and expenses) arising therefrom or with respect thereto, whether or not such
Taxes, Other Taxes or Further Taxes were correctly or legally asserted. Payment
under this indemnification shall be made within 30 days after the date the
applicable Lender or Agent makes written demand therefor.
(d) Within 30 days after the date of any payment by the applicable
Borrower of Taxes, Other Taxes or Further Taxes, such Borrower shall furnish to
each Applicable Lender or the Applicable Facility Agent the original or a
certified copy of a receipt evidencing payment thereof, or other evidence of
payment satisfactory to such Lender or Agent.
(e) If any Borrower is required to pay any amount to any Lender or
Agent pursuant to subsection (b) or (c) of this Section 6.06, then such Lender
shall use reasonable efforts (consistent with legal and regulatory restrictions)
to change the jurisdiction of its Applicable Lending Office so as to eliminate
any such additional payment by such Borrower which may thereafter accrue, if
such change in the sole judgment of such Lender is not otherwise disadvantageous
to such Lender.
(f) Each US Facility Lender organized under the laws of a jurisdiction
outside the United States, on or prior to the date of its execution and delivery
of this Agreement in the case of each Lender listed on the signature pages
hereof and on or prior to the date on which it becomes a US Facility Lender in
the case of each other Lender, and from time to time thereafter if requested in
writing by any US Facility Borrower or the US Facility Agent (but only so long
as such Lender remains lawfully able to do so), shall provide the Company and
the US Facility Agent with (i) Internal Revenue Service Form 1001 or 4224, as
appropriate, or any successor form prescribed by the Internal Revenue Service,
certifying that such Lender is entitled to benefits under an income tax treaty
to which the United States is a party which reduces the rate of withholding tax
on payments of interest or certifying that the income receivable pursuant to
this Agreement is effectively connected with the conduct of a trade or business
in the United States, (ii) Internal Revenue Service Form W-8 or W-9, as
appropriate, or any successor form prescribed by the Internal Revenue Service,
and (iii) any other form or certificate required by any taxing authority
(including any certificate required by Sections 871(h) and 881(c) of the
Internal Revenue Code), certifying that such Lender is entitled to an exemption
from or a reduced rate of tax on payments pursuant to this Agreement or any of
the other Loan Documents.
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(g) Each UK Facility Lender (other than a Lender entitled to receive
payments of interest in respect of each UK Facility Loan free of withholding or
deduction for or on account of United Kingdom income tax under Section 349(3)(a)
of the Income and Corporation Taxes Xxx 0000 of the United Kingdom (a "UK
Qualifying Lender"); provided that this subsection (e) shall apply to a UK
Qualifying Lender which loses such status, other than through a change in any
applicable law, treaty or governmental rule, regulation or order, or any change
in the interpretation, administration or application thereof after the Closing
Date or effective date thereafter it becomes a Lender, from the date of such
loss) shall deliver to the appropriate Person such application forms,
certificates, documents or other evidence as may be required from time to time,
properly completed and duly executed by such UK Facility Lender, to enable the
UK Facility Borrowers to be able to pay interest on the UK Facility Loans of
such UK Facility Lender without withholding or deduction for or on account of
any United Kingdom income tax.
(h) Each Canadian Facility Lender that is organized under the laws of
any jurisdiction other than Canada or any political subdivision thereof (a
"Non-Canadian Lender") agrees to deliver to the Canadian Facility Borrower and
Canadian Facility Agent upon request such certificates, documents or other
evidence as may be required from time to time, properly completed and duly
executed by such Non-Canadian Lender, to establish the basis for any applicable
exemption from or reduction of taxes with respect to any payments to such
Non-Canadian Lender of principal, interest, fees, commissions or any other
amount payable under this Agreement or the Canadian Facility Loans.
(i) Each Australian Facility Lender that is organized under the laws of
any jurisdiction other than Australia or any political subdivision thereof, (a
"Non-Australian Lender") agrees to deliver to the Australian Facility Borrowers
and Australian Facility Agent upon request such certificates, documents or other
evidence as may be required from time to time, properly completed and duly
executed by such Non-Australian Lender, to establish the basis for any
applicable exemption from or reduction of taxes with respect to any payments to
such Non-Australian Lender of principal, interest, fees, commissions or any
other amount payable under this Agreement or the Australian Facility Loans,
other than with respect to payments made on or in connection with Australian
Facility Loans advanced in New Zealand Dollars.
(j) For any period with respect to which a Lender has failed to provide
the Company and the Applicable Facility Agent with the appropriate form pursuant
to Section 6.06(f), (g), (h) or (i), as applicable (unless such failure is due
to a change in treaty, law, or regulation occurring subsequent to the date on
which a form originally was required to be provided), such Lender shall not be
entitled to indemnification under Section 6.06(a), (b), or (c) with respect to
Taxes imposed by the United States, United Kingdom, Canada or Australia, as
applicable (specifically exempting from this Section 6.06(j), and thereby
preserving each Lender's rights to indemnification hereunder with respect to,
Taxes imposed by New Zealand); provided, however, that should a Lender, which is
otherwise exempt from or subject to a reduced rate of withholding tax, become
subject to Taxes because of its failure to deliver a form required hereunder,
each Applicable Borrower shall take such steps as such Lender shall reasonably
request to assist such Lender to recover such Taxes.
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(k) Without prejudice to the survival of any other agreement of any
Borrower hereunder, the agreements and obligations of each Borrower contained in
this Section 6.06 shall survive the termination of the Commitments and the
payment in full of the Obligations.
6.07 Replacement Lender. In the event any Lender seeks additional
compensation pursuant to this Article VI or is restricted from making any Fixed
Rate Loan under this Agreement (a "Restricted Lender"), so long as no Default or
Event of Default shall have occurred and be continuing and the Company has
obtained a commitment from another Lender or an Eligible Assignee to become a
Lender for all purposes hereunder, the Company may cause such Restricted Lender
to be replaced by, and to assign all its Loans, Applicable Facility Commitments,
Applicable Fronting Commitments, Participations and other Obligations owing
thereto pursuant to Section 13.01 to, such other Lender or an Eligible Assignee
reasonably acceptable to the Applicable Facility Agent(s) and the Global Agent
which is not similarly restricted and will not seek such additional
compensation. Such Restricted Lender agrees to execute and to deliver to the
Global Agent and to each Applicable Facility Agent of each Facility in which
such Restricted Lender has made or was obligated to make Loans an Assignment and
Acceptance with such replacement Lender as provided in Section 13.01 hereof upon
payment at par of all principal, interest, fees and other amounts owing under
this Agreement to such Restricted Lender. The Company shall pay to the
Applicable Facility Agent the processing fee required by Section 13.01(a)(iv) in
connection with such assignment.
6.08 Funding. In the event any Borrower elects to obtain any Loans as
Fixed Rate Loans, or elects to Continue any Fixed Rate Loans or Convert any
portion of the principal amount of any Floating Rate Loans to Fixed Rate Loans,
each Lender may, if it so elects, fulfill its obligation to make or Continue any
portion of the principal amount of any Loan as, or to Convert any portion of the
principal amount of any Loan into, a Fixed Rate Loan in accordance with any
election made by such Borrower by causing a foreign branch or affiliate of such
Lender or an international banking facility created by such Lender to make such
Fixed Rate Loan; provided, that in such event such Fixed Rate Loan shall be
deemed to have been made by such Lender, and the obligation of the Borrower to
repay such Fixed Rate Loan shall nevertheless be to such Lender and shall be
deemed to be held by such Lender, to the extent of such Fixed Rate Loan, for the
account of such foreign branch, affiliate or international banking facility. In
addition, the Borrowers hereby consent and agree that, for purposes of any
determination to be made for purposes of this Agreement (including Sections
6.01, 6.02, 6.03 and 6.04), it shall be conclusively assumed that each Lender
elected to fund all Fixed Rate Loans by purchasing deposits in the Applicable
Currency in its eurocurrency office's interbank eurocurrency market.
6.09 Economic and Monetary Union in the European Community.
(a) If, as a result of the implementation of the European economic and
monetary union ("EMU"), (i) any currency available for borrowing under this
Agreement (a "national currency") ceases to be lawful currency of the state
issuing the same and is replaced by a European single or common currency (the
"Euro") or (ii) any national currency and the Euro are at the same time both
recognized by the central bank or comparable governmental authority of the state
issuing such currency as lawful currency of such state, then any amount borrowed
hereunder by any party hereto in such national currency shall be payable in such
national currency and any amount borrowed
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hereunder in the Euro shall be payable in the Euro. After the European Central
Bank and/or the comparable government authority ceases to recognize any national
currency, then the amount so payable shall be determined by redenominating or
converting such national currency into the Euro at the exchange rate officially
fixed by the European Central Bank for the purpose of implementing the EMU.
Prior to the occurrence of the event or events described in clause (i) or (ii)
of the preceding sentence, each amount payable hereunder in any such national
currency will, except as otherwise provided herein, continue to be payable only
in that national currency.
(b) The Applicable Borrowers shall from time to time, at the request of
any Lender, pay to such Lender the amount of any losses, damages, liabilities,
claims, reduction in yield, additional expense or increased cost incurred by, or
of any reduction in any amount payable to or in the effective return on its
capital to, or any decrease or delay in the payment of interest or other return
foregone by, such Lender or any of its affiliates as a result of any political,
tax, liquidity, currency exchange or market risk resulting from the introduction
of, changeover to or operation of the Euro in any applicable nation or
eurocurrency market.
(c) In addition, this Agreement (including, without limitation, the
definitions of Total French Franc Commitment, LIBOR, Offshore Rate and
Applicable Reference Rate) will be amended to the extent determined by the
Applicable Facility Agents (acting reasonably and in consultation with the
Company) to be necessary to reflect such implementation of the EMU and change in
currency and to put the Lenders and the Borrowers in the same position, so far
as possible, that they would have been in if such implementation and change in
currency had not occurred. Except as provided in the foregoing provisions of
this Section 6.09 and the requirements of Section 13.10, no such implementation
or change in currency nor any economic consequences resulting therefrom shall
(i) give rise to any right to terminate prematurely, contest, cancel, rescind,
alter, modify or renegotiate the provisions of this Agreement or (ii) discharge,
excuse or otherwise affect the performance of any obligations of any Borrower
under this Agreement, any Notes or other Loan Documents.
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ARTICLE VII
Conditions to Making Loans
7.01 Conditions of Initial Advance. The obligation of the Lenders to
make the initial Advance is subject to the following conditions precedent:
(a) The Global Agent shall have received, on the Closing Date in form
and substance satisfactory to the Agents and the Lenders the following:
(i) executed originals of each of this Agreement and the Notes
and the other Loan Documents, together with all schedules and exhibits
thereto in form and substance satisfactory to the Agents and the
Lenders;
(ii) favorable written opinion of counsel to the Company as US
Facility Borrower and Guarantor, and special U.S. counsel to each other
Borrower dated the Closing Date, addressed to the Agents and the
Lenders and satisfactory to special counsel to the Global Agent,
substantially in the form of Exhibit G attached hereto;
(iii) resolutions of the board of directors (or of the
appropriate committee thereof) of each of the Borrowers certified by
its secretary or assistant secretary as of the Closing Date, appointing
the initial Authorized Representatives and approving and adopting the
Loan Documents to be executed by such Borrower, and authorizing the
execution and delivery thereof; specimen signatures of officers of each
Borrower executing the Loan Documents, certified by the Secretary or
Assistant Secretary of such Borrower;
(iv) the Organizational Documents of each of the Borrowers
certified as of a recent date by the Secretary of State or comparable
official of its jurisdiction of organization or, if no such
certification is available, by the secretary or assistant secretary of
such Borrower;
(v) the Operating Documents of each of the Borrowers certified
as of the Closing Date as true and correct by the secretary or
assistant secretary of such Borrower;
(vi) certificates issued as of a recent date by the Secretary
of State or comparable official of the jurisdiction of the formation of
each of the Borrowers as to the corporate good standing of such
Borrower therein;
(vii) notice(s) of appointment of the initial Authorized
Representatives;
(viii) all fees payable by the Borrowers on the Closing Date
to the Agents and the Lenders;
(ix) evidence satisfactory to the Global Agent of the
repayment in full and termination of each of the Prior Facilities
simultaneously with the making of the initial Advances hereunder, and
the agreement to terminate any Liens on assets securing any
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obligations under any of the Prior Facilities which termination shall
be effected with reasonable promptness following the Closing Date;
(x) financial statements of the Borrower and its Subsidiaries
required to be delivered pursuant to Section 8.02(b)(i) hereof;
(xi) a certificate of an Authorized Representative of the
Company reasonably satisfactory to the Agents and the Lenders as to the
matters set forth in Section 7.01(b)(ii) through (iv) and 7.01(c)(i);
and
(xii) such other documents, instruments, certificates and
opinions as any Agent or any Lender may reasonably request on or prior
to the Closing Date in connection with the consummation of the
transactions contemplated hereby;
(b) Each of the following shall have occurred or be true:
(i) The Global Agent shall have completed all due diligence
with respect to the Company and its Subsidiaries in scope and
determination satisfactory to the Global Agent in its sole discretion;
(ii) There shall not be any action, suit, investigation or
proceeding pending or threatened in any court or before any arbitrator
or governmental instrumentality that (a) purports to affect the
transactions contemplated hereby, (b) would reasonably be expected to
have a Material Adverse Effect or (c) would reasonably be expected to
have a material adverse effect on the ability of the Loan Parties to
perform their respective obligations hereunder or under the other Loan
Documents;
(iii) The Company and its Subsidiaries shall be in compliance
with all existing financial and material contractual obligations before
and immediately after giving effect to the financings and other
transactions contemplated hereby;
(iv) The Company and its Subsidiaries shall have received all
government, shareholder and third-party approvals, consents and
waivers, and shall have made or given all necessary filings and
notices, as shall be required to consummate the transactions
contemplated hereby without the occurrence of any default under,
conflict with or violation of (A) any applicable law, rule, regulation,
order or decree of any court or other Governmental Authority or
arbitral authority, (B) any Organizational Document or Operating
Agreements of the Company or any Subsidiary or (C) any agreement,
document or instrument to which any of the Company or any Subsidiary is
a party or by which any of them or their properties is bound, if such
default, conflict or violation would reasonably be expected to result
in a Material Adverse Effect; and all applicable waiting periods shall
have expired without any action being taken or threatened in writing by
any authority that could restrain, prevent or impose any material
adverse conditions on the making of any Loan or other transactions
contemplated hereby, and no law or regulation shall be applicable which
would reasonably be expected to have a Material Adverse Effect; and
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(c) In the good faith judgment of the Agents and the Lenders:
(i) There shall not have occurred a material adverse change in
the business, assets, operations, condition (financial or otherwise) or
prospects of the Company and its Subsidiaries taken as a whole since
February 28, 1998 or in the facts or information regarding such
entities most recently delivered to the Global Agent by the Company or
any Borrower;
(ii) There shall not have occurred and be continuing a
material adverse change in the market for syndicated credit facilities
similar in nature to the Facilities or a material disruption of, or a
material adverse change in, financial, banking or capital market
conditions, in each case as determined by the Global Agent in its
reasonable discretion.
7.02 Conditions of Loans. The obligations of the Lenders to make any
Advances on or subsequent to the Closing Date are subject to the satisfaction of
the following conditions:
(a) the Applicable Facility Agent under a specific Facility
shall have received a Borrowing Notice if required hereby;
(b) the representations and warranties of the Borrowers set
forth in Article VII hereof and in each of the other Loan Documents
shall be true and correct on and as of the date of such Advance, with
the same effect as though such representations and warranties had been
made on and as of such date, except to the extent that such
representations and warranties expressly relate to an earlier date and
except that the financial statements referred to in Section 8.02(b)
shall be deemed to be those financial statements most recently
delivered to the Agents and the Lenders pursuant to Section 9.01
hereof;
(c) at the time of each such Advance, no Default or Event of
Default shall have occurred and be continuing;
(d) immediately after giving effect to a US Facility Advance,
(i) the US Facility Outstandings shall not exceed the Total US Facility
Commitment and (ii) the US Facility Revolving Credit Outstandings shall
not exceed the US Facility Revolving Credit Facility;
(e) immediately after giving effect to a Canadian Facility
Advance, (i) the Canadian Facility Outstandings shall not exceed the
Total Canadian Facility Commitment, (ii) the Canadian Facility
Renewable Tranche Outstandings shall not exceed the Canadian Facility
Renewable Tranche Commitment, and (iii) the Canadian Facility Full
Maturity Tranche Outstandings shall not exceed the Canadian Facility
Full Maturity Tranche Commitment;
(f) immediately after giving effect to a UK Facility Advance,
(i) the UK Facility Outstandings shall not exceed the Total UK Facility
Commitment and the French Franc Outstandings shall not exceed the Total
French Franc Commitment, and (ii) the aggregate amount borrowed by, and
outstanding to, any UK Facility Borrower shall not exceed its UK
Facility Maximum Amount;
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(g) immediately after giving effect to an Australian Facility
Advance, (i) the Australian Facility Outstandings shall not exceed the
Total Australian Facility Commitment and the New Zealand Dollar
Outstandings shall not exceed the Total New Zealand Dollar Commitment,
and (ii) the aggregate amount borrowed by, and outstanding to, any
Australian Facility Borrower shall not exceed its Australian Facility
Maximum Amount.
Each request for a borrowing, Continuation or Conversion of Loans shall
constitute a representation and warranty by the Borrowers that the conditions
set forth in clauses (b) and (c) above have been satisfied as of the date
thereof and that as of the date of such Advance there has not been any material
adverse change in the business, operations or financial condition of the Company
and its Subsidiaries.
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ARTICLE VIII
Representations and Warranties
8.01 Representations and Warranties as to Borrowers and Subsidiaries.
Each Borrower represents and warrants to and in favor of the Agents and each
Lender with respect to itself and to its Subsidiaries (which representations and
warranties shall survive the delivery of the documents mentioned herein and the
making of Loans) that:
(a) Organization and Authority.
(i) each Borrower and each of its Subsidiaries is an
entity duly organized and validly existing under the laws of
the jurisdiction of its formation;
(ii) each Borrower and each of its Subsidiaries (A)
has the requisite power and authority to own its properties
and assets and to carry on its business as now being
conducted, and (B) is qualified to do business in every
jurisdiction in which failure so to qualify would have a
Material Adverse Effect;
(iii) each Borrower has the requisite power and
authority to execute, deliver and perform this Agreement and
the Notes, and to borrow hereunder, and to execute, deliver
and perform each of the other Loan Documents to which it is a
party, including without limitation, in the case of the
Company, the Guaranty; and
(iv) when executed and delivered, each of the Loan
Documents to which such Borrower is a party will be valid and
binding obligations of such Borrower, enforceable against such
Borrower in accordance with its terms, subject to the effect
of any applicable bankruptcy, moratorium, insolvency,
reorganization or other similar law affecting the
enforceability of creditors' rights generally and to the
effect of general principles of equity which may limit the
availability of equitable remedies (whether in a proceeding at
law or in equity).
(b) Loan Documents. The execution, delivery and performance by
each Borrower of each of the Loan Documents to which it is a party:
(i) have been duly authorized by all requisite
Organizational Action (including any required shareholder
approval) of such Borrower required for the lawful execution,
delivery and performance thereof;
(ii) do not violate any provisions of (A) applicable
law, rule or regulation, (B) any judgment, writ, order,
determination, decree or arbitral award of any Governmental
Authority or arbitral authority binding on such Borrower or
its Subsidiaries or its or their properties, (C) the
Organizational Documents or Operating Documents of such
Borrower or its Subsidiaries or (D) any provisions of any
indenture, agreement or other instrument to which such
Borrower or any of its
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Subsidiaries is a party, or by which the properties or assets
of such Borrower or its Subsidiaries are bound;
(iii) does not and will not be in conflict with,
result in a breach of or constitute an event of default, or an
event which, with notice or lapse of time, or both, would
constitute an event of default, under any contract, indenture,
agreement or other instrument or document to which the
Borrower or any of its Subsidiaries is a party or by which any
of their properties are bound; and
(iv) does not and will not result in the creation or
imposition of any Lien, charge or encumbrance of any nature
whatsoever upon any of the properties or assets of such
Borrower or any of its Subsidiaries.
(c) Solvency. Each Borrower and each of its Subsidiaries is
Solvent after giving effect to the transactions contemplated by this
Agreement and the other Loan Documents and assuming an Advance on the
Closing Date equal to the Applicable Total Facility Commitment for the
Facility in which such Borrower is an Applicable Borrower.
8.02 Representations and Warranties of the Company. The Company
represents and warrants with respect to itself and its Subsidiaries (which
representations and warranties shall survive the delivery of the documents
mentioned herein and the making of Loans) that:
(a) Subsidiaries and Stockholders. It has no Subsidiaries
other than those Persons listed as Subsidiaries in Schedule 8.02(a)
hereto and additional Subsidiaries acquired after the Closing Date as
permitted under Section 10.08 hereof. The outstanding shares or other
equity interests (including options, warrants and other rights to
acquire any interest) of each such Subsidiary have been duly authorized
and validly issued and are fully paid and nonassessable; and the
Company and each such Subsidiary owns beneficially and of record all
the shares and other interests it is listed as owning in Schedule
8.02(a), free and clear of any Lien.
(b) Financial Condition.
(i) The Company has heretofore furnished to each
Lender an audited unqualified consolidated balance sheet of
the Company and its Subsidiaries as at February 28, 1998 and
the notes thereto and the related consolidated statements of
income, stockholders' equity and cash flow for the Fiscal Year
then ended, all as examined and certified by Ernst & Young,
LLP. Except as set forth therein, such financial statements
(including the notes thereto) present fairly the financial
condition of the Company and its Subsidiaries as of the end of
such Fiscal Year and results of their operations and the
changes in their stockholders' equity for the Fiscal Year then
ended, all in conformity with Generally Accepted Accounting
Principles applied on a Consistent Basis. Except as disclosed
therein, neither the Company nor any Subsidiary has, as of the
date hereof, any known and material direct liability;
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(ii) since the later of (A) the date of the audited
financial statements delivered pursuant to Section 8.02(b)(i)
hereof or (B) the date of the audited financial statements
most recently delivered pursuant to Section 9.01(a) hereof,
the Company and its Subsidiaries have not suffered or endured
any Material Adverse Effect; and
(iii) except as set forth in (A) the audited
financial statements delivered pursuant to Section 8.02(b)(i)
hereof or (B) the audited financial statements most recently
delivered pursuant to Section 9.01(a) hereof, the Company and
its Subsidiaries have not incurred, other than in the ordinary
course of business, any material Contingent Obligation or
other liability, obligation or commitment, contingent or
otherwise, which remain outstanding or unsatisfied.
(c) Title to Properties. The Company and its Subsidiaries have
good and marketable title to all their respective real and personal
properties, subject to no transfer restrictions, or Liens of any kind,
except for the transfer restrictions and Liens permitted under Section
10.03 hereof.
(d) Taxes. The Company and its Subsidiaries have filed or
caused to be filed all federal, state and local tax returns which are
required to be filed by them and, except for taxes and assessments
being contested in good faith by appropriate proceedings diligently
conducted and against which satisfactory reserves reflected in the
financial statements described in Section 8.02(b)(i) as required by
Generally Accepted Accounting Principles have been established, have
paid or caused to be paid all taxes as shown on said returns or on any
assessment received by them, to the extent that such taxes have become
due.
(e) Other Agreements. Neither the Company nor any Subsidiary
is
(i) a party to or subject to any judgment, order,
decree or any agreement or instrument, or subject to other
restrictions, which individually or in the aggregate could
reasonably be expected to result in a Material Adverse Effect;
or
(ii) in default in the performance, observance or
fulfillment of any of the obligations, covenants or conditions
contained in any agreement or instrument to which the Company
or any Subsidiary is a party, which default, if not remedied
within any applicable grace period, could reasonably be
expected to result in a Material Adverse Effect.
(f) Litigation. Except as set forth on Schedule 8.02(f)
attached hereto, there is no action, suit, investigation or proceeding
at law or in equity or by or before any governmental instrumentality or
agency or arbitral body pending, or, to the best knowledge of the
Company, threatened by or against the Company or any Subsidiary or
affecting the Company or any Subsidiary or any properties or rights of
the Company or any Subsidiary, which, if determined adversely to the
Company or such Subsidiary, could reasonably be expected to result in a
Material Adverse Effect.
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(g) Margin Stock. The proceeds of the borrowings made
hereunder will be used by the Company and the other Borrowers only for
the purposes set forth in Section 2.11, Section 3.11, Section 4.11 and
Section 5.11 hereof. None of such proceeds will be used, directly or
indirectly, for the purpose of purchasing or carrying any margin stock
(as such term is defined in Regulation U, as amended (12 C.F.R. Part
221), of the Board) or for the purpose of reducing or retiring any
Indebtedness which was originally incurred to purchase or carry margin
stock or for any other purpose which might constitute any of the Loans
under this Agreement a "purpose credit" within the meaning of said
Regulation U or Regulation X (12 C.F.R. Part 224) of the Board. Neither
the Company nor any agent acting in its behalf has taken or will take
any action which might cause this Agreement or any of the documents or
instruments delivered pursuant hereto to violate any regulation of the
Board or to violate the Securities Exchange Act of 1934, or the
Securities Act of 1933, or any state securities laws, in each case as
in effect on the date hereof.
(h) Intellectual Property. The Company and its Subsidiaries
own or have the right to use, under valid license agreements or
otherwise, all patents, licenses, franchises, trademarks, trademark
rights, trade names, trade name rights, trade secrets, copyrights and
know how necessary and material to the conduct of their businesses as
now conducted, in all cases without known conflict with any patent,
license, franchise, trademark, trade secret and confidential commercial
or proprietary information, trade name, copyright, rights to trade
secrets or other proprietary rights of any other Person.
(i) No Untrue Statement. Neither (a) this Agreement or any
other Loan Document or certificate or document executed and delivered
by or on behalf of the Company or any other Borrower or any Subsidiary
in accordance with or pursuant to any Loan Document nor (b) any
statement, representation or warranty provided to the Agents in
connection with the negotiation or preparation of the Loan Documents
contains any misrepresentation or untrue statement of material fact or
omits to state a material fact necessary, in light of the circumstance
under which it was made, in order to make any such warranty,
representation or statement contained therein not misleading.
(j) No Consents, Etc. Neither the respective businesses or
properties of the Company or any Subsidiary nor any circumstance in
connection with the execution, delivery and performance of the Loan
Documents and the transactions contemplated thereby, is such as to
require a consent, approval or authorization of, or filing,
registration or qualification with, any Governmental Authority or any
other Person on the part of the Company or any Borrower or any
Subsidiary as a condition to the execution, delivery and performance
of, or consummation of the transactions contemplated by, this Agreement
or the other Loan Documents, or if so, such consent, approval,
authorization, filing, registration or qualification has been duly
obtained or effected, as the case may be.
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(k) ERISA.
(i) The Company, each ERISA Affiliate and each
Subsidiary is in compliance with all applicable provisions of
ERISA, the Code and the regulations and published
interpretations thereunder and in compliance with all Foreign
Benefit Laws and the regulations and published interpretations
thereunder with respect to all Employee Benefit Plans, except
for any required amendments for which the remedial amendment
period as defined in Section 401(b) of the Code has not yet
expired and except for failures to so comply that would not,
in the aggregate, reasonably be expected to result in a
Material Adverse Effect. Each Employee Benefit Plan that is
intended to be qualified under Section 401(a) of the Code has
been determined, or the Company or such ERISA Affiliate or its
Subsidiaries is in the process of obtaining a determination by
the Internal Revenue Service, to be so qualified, each trust
related to such Employee Benefit Plan has been determined to
be exempt under Section 501(a) of the Code, and each Employee
Benefit Plan subject to any Foreign Benefit Law has received
the required approvals by any Governmental Authority
regulating such Employee Benefit Plan, except for such
qualifications, exemptions and approvals the absence of which
could not reasonably be expected to result in a Material
Adverse Effect. No material liability has been incurred by the
Company or any ERISA Affiliate (including, without limitation,
taxes, penalties, funding deficiencies and required
contributions, installments or other payments) which remains
unsatisfied with respect to any Employee Benefit Plan or any
Multiemployer Plan. No Termination Event has occurred or is
reasonably expected to occur with respect to any Employee
Benefit Plan, and neither the Company nor any ERISA Affiliate
has incurred any unpaid withdrawal liability with respect to
any Multiemployer Plan, which event or liability could
reasonably be expected to result in a Material Adverse Effect;
and
(ii) To the best of the Company's knowledge, each
Employee Benefit Plan subject to Title IV of ERISA or the
funding of which is regulated by any Foreign Benefit Law,
maintained by the Company, any ERISA Affiliate or any
Subsidiary, has been administered in accordance with its terms
and is in compliance in all material respects with all
applicable requirements of ERISA and other applicable laws,
regulations and rules and any applicable Foreign Benefit Law.
(l) No Default. As of the date hereof, there does not exist
any Default or Event of Default hereunder.
(m) Hazardous Materials. The Company, each Borrower and each
Subsidiary are in compliance with all applicable Environmental Laws,
except for such noncompliance that could not reasonably be expected to
result in a Material Adverse Effect, and have been issued and maintain
all required federal, state and local permits, licenses, certificates
and approvals pertaining to Hazardous Materials that are necessary to
the conduct of their businesses, except for any such permits, licenses,
certificates or approvals the absence of which could not reasonably be
expected to result in a Material Adverse Effect. Neither the Company,
any Borrower nor any Subsidiary has been notified of any pending or
threatened action, suit,
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proceeding or investigation, and neither the Company, any Borrower nor
any Subsidiary is aware of any fact, which (A) calls into question, or
could reasonably be expected to call into question, compliance by the
Company, any Borrower or any Subsidiary with any Environmental Laws,
except for such noncompliance that could not reasonably be expected to
result in a Material Adverse Effect, or (B) seeks, or could reasonably
be expected to form the basis of a meritorious proceeding to seek to
suspend, revoke or terminate any license, permit, certification or
approval necessary for the operation of the Company's or any
Subsidiary's facility or the generation, handling, storage, treatment
or disposal of any Hazardous Material that is necessary to the conduct
of its business, except for any such license, permit, certification or
approval the absence of which could not reasonably be expected to
result in a Material Adverse Effect, or (iii) seeks to cause, or could
reasonably be expected to form the basis of a meritorious proceeding to
cause, any property of the Company or any Subsidiary to be subject to
any restrictions on ownership, use, occupancy or transferability under
any Environmental Law, which such restrictions could reasonably be
expected to have a Material Adverse Effect, or (iv) constitutes a
reasonable basis to conclude that the Company or any Subsidiary is a
potentially responsible party with regard to any release or threatened
release of a Hazardous Material.
(n) Year 2000 Compliance. The Company has (i) initiated a
review and assessment of all areas within its and each of its
Subsidiaries' business and operations (including those affected by
suppliers, vendors and customers) that could be adversely affected by
the "Year 2000 Problem" (that is, the risk that computer hardware and
software applications used by the Borrower or any of its Subsidiaries
(or suppliers, vendors and customers) may be unable to recognize and
perform properly date-sensitive functions involving certain dates prior
to and any date after December 31, 1999), (ii) developed a plan and
time line for addressing the Year 2000 Problem on a timely basis, and
(iii) to date, implemented that plan in accordance with that timetable.
Based on the foregoing, the Company believes that all computer hardware
and software applications (including those of its suppliers, vendors
and customers) that are material to its or any of its Subsidiaries'
business and operations are reasonably expected on a timely basis to be
able to perform properly date-sensitive functions for all dates before
and after January 1, 2000 (that is, be "Year 2000 Compliant"), except
to the extent that a failure to do so could not reasonably be expected
to have a Material Adverse Effect.
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ARTICLE IX
Affirmative Covenants
Until the Total Facility Termination Date, unless the Required Lenders
shall otherwise consent in writing, the Company will and will cause each
Subsidiary to:
9.01 Financial Reports, Etc.
(a) As soon as practical and in any event within 95 days after the end
of each Fiscal Year of the Company, deliver or cause to be delivered to the
Agents and each Lender (i) consolidated balance sheets of the Company and its
Subsidiaries as at the end of such Fiscal Year, and the notes thereto, and the
related consolidated statements of income, stockholders' equity and cash flow
and the respective notes thereto for such Fiscal Year, setting forth in each
case comparative financial statements for the preceding Fiscal Year, all
prepared in accordance with Generally Accepted Accounting Principles applied on
a Consistent Basis and containing, with respect to the consolidated financial
statements, opinions of Ernst & Young, LLP, or such other independent certified
public accountants selected by the Company and approved by the Required Lenders,
which are unqualified as to the scope of the audit performed and as to the
"going concern" status of the Company and its Subsidiaries and without any
exception not acceptable to the Lenders; (ii) a copy of the Company's Form 10-K
as filed with the Securities and Exchange Commission; and (iii) a certificate of
an Authorized Representative demonstrating compliance with Sections 10.01 and
10.02 of this Agreement as of such Fiscal Year end, its Debt Ratings by S&P and
Xxxxx'x as of such Fiscal Year end and the Outstandings under each Facility as
of such Fiscal Year end, which certificate shall be in the form attached as
Exhibit H;
(b) as soon as practical and in any event within 50 days after the end
of each fiscal quarter (except the last fiscal quarter of the Fiscal Year) of
the Company, deliver to the Agents and each Lender (i) consolidated balance
sheets of the Company and its Subsidiaries as at the end of such fiscal quarter
and the related consolidated statements of income, stockholders' equity and cash
flow for such fiscal quarter and for the period from the beginning of the Fiscal
Year through the end of such reporting period, prepared without notes and
accompanied by a certificate of an Authorized Representative to the effect that
such financial statements present fairly the financial position of the Company
and its Subsidiaries as of the end of such fiscal period and the results of
their operations and the changes in their financial position for such fiscal
period, in conformity with the standards set forth in GAAP with respect to
interim financials; (ii) a copy of the Company's Form 10-Q for such quarterly
period as filed with the Securities and Exchange Commission; and (iii) a
certificate of an Authorized Representative as of such fiscal quarter end
similar to that required pursuant to Section 9.01(a)(iii);
(c) promptly upon their becoming available to the Company, deliver to
the Agents and each Lender a copy of (i) all regular or special reports or
effective registration statements which the Company or any Subsidiary shall file
with the Securities and Exchange Commission (or any successor thereto) or any
securities exchange, and (ii) all reports, proxy statements, financial
statements and
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other information distributed by the Company to its stockholders, bondholders or
the financial community in general; and
(d) promptly, from time to time, deliver or cause to be delivered to
the Agents or to each Lender such other information regarding the Company's and
each Subsidiary's operations, business affairs and financial condition as any
such Agent or Lender may reasonably request to the extent such statements exist.
The Agents and the Lenders are hereby authorized to deliver a copy of
any such financial or other information delivered hereunder to the Lenders (or
any affiliate of any Lender) or to the Agents, to any Governmental Authority
having jurisdiction over any of the Agents or the Lenders pursuant to any
written request therefor or in the ordinary course of examination of loan files,
or to any other Person who shall acquire or consider the acquisition of a
participation interest in or assignment of any Loan permitted by this Agreement.
9.02 Maintain Properties. Maintain all properties necessary to its
operations in good working order and condition, ordinary wear and tear excepted,
make all needed repairs, replacements and renewals to such properties, and
maintain free from Liens all trademarks, trade names, patents, copyrights, trade
secrets, know-how and other intellectual property and proprietary information
(or adequate licenses thereto), in each case as are necessary to conduct its
business as currently conducted or as contemplated hereby, all in accordance
with customary business practices.
9.03 Existence, Qualification, Etc. Except as otherwise expressly
permitted under Section 10.05 hereof, do or cause to be done all things
necessary to preserve and keep in full force and effect its existence and all
material rights and franchises, trade names, trademarks and permits and maintain
its license or qualification to do business as a foreign corporation and good
standing in each jurisdiction in which its ownership or lease of property or the
nature of its business makes such license or qualification necessary and in
which the failure to maintain such license or qualification could reasonably be
expected to result in a Material Adverse Effect.
9.04 Regulations and Taxes. Comply with or contest in good faith by
appropriate proceedings diligently conducted all statutes and governmental
regulations and pay all taxes, assessments, governmental charges, claims for
labor, supplies, rent and any other obligation which, if unpaid, might become a
Lien against any of its properties except liabilities being contested in good
faith by appropriate proceedings diligently conducted and against which adequate
reserves as required by GAAP have been established.
9.05 Insurance. Maintain with financially sound and reputable insurers
insurance with respect to its properties and business and against such
liabilities, casualties and contingencies of such types and in such amounts as
is customary in the case of corporations engaged in the same or a similar
business or having similar properties similarly situated.
9.06 True Books. Keep true books of record and account in which full,
true and correct entries will be made of all of its dealings and transactions,
and set up on its books such reserves as may be required by Generally Accepted
Accounting Principles with respect to doubtful accounts and
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all taxes, assessments, charges, levies and claims and with respect to its
business in general, and include such reserves in interim as well as year-end
financial statements.
9.07 Right of Inspection. Permit any Person designated by any Lender or
any Agent, at such Lender's or Agent's expense, to visit and inspect any of the
properties, corporate books and financial reports of the Company and its
Subsidiaries, and to discuss its affairs, finances and accounts with its
principal officers and independent certified public accountants, all at such
reasonable times, at reasonable intervals and with reasonable prior notice;
provided, however, that following the occurrence and during the continuation of
any Default or Event of Default, such visits or inspections shall be at the
expense of the Company.
9.08 Observe all Laws. Conform to and duly observe in all material
respects all laws, rules and regulations and all other valid requirements of any
Governmental Authority with respect to the conduct of its business.
9.09 Covenants Extending to Subsidiaries. Cause each of its
Subsidiaries to do with respect to itself, its business and its assets, each of
the things required of the Company in Sections 9.02 through 9.08, inclusive,
Section 9.14 and Section 9.16.
9.10 Officer's Knowledge of Default. Upon any executive officer of the
Company obtaining knowledge of the occurrence of any Default or Event of Default
hereunder or under any other obligation of the Company or any Subsidiary to any
Lender, or any event, development or occurrence which could reasonably be
expected to result in a Material Adverse Effect, cause such executive officer or
an Authorized Representative promptly to notify the Agents and each of the
Lenders of the nature thereof, the period of existence thereof, and what action
the Company or such Subsidiary proposes to take with respect thereto.
9.11 Suits or Other Proceedings. Upon any executive officer of the
Company obtaining knowledge of any litigation, dispute or other proceedings
being instituted or threatened against the Company or any Subsidiaries, or any
attachment, levy, execution or other process being instituted against any assets
of the Company or any Subsidiaries, making a claim or claims in an aggregate
amount greater than $10,000,000 not otherwise covered by insurance, or could
reasonably be expected to have a material adverse effect on the Company and its
Subsidiaries, cause such executive officer or an Authorized Representative
promptly to deliver to the Agents and each of the Lenders written notice thereof
stating the nature and status of such litigation, dispute, proceeding, levy,
execution or other process.
9.12 Environmental Compliance.
(a) If the Company or any Subsidiary shall receive in writing
any letter, notice, complaint, order, directive, claim or citation
alleging that the Company or any Subsidiary (i) has violated any
Environmental Law, (ii) has released or is about to release any
Hazardous Material other than in compliance with all Environmental Laws
(or suffered or permitted such action by any other Person on or in
respect of property owned or operated by the Company or any Subsidiary
or any other Person handling, transporting, or disposing of any
Hazardous
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Material on behalf of the Company or any Subsidiary), or (iii) is
liable for the costs of cleaning up, removing, remediating or
responding to a release or threatened release of Hazardous Materials,
which allegation in any of the foregoing instances, if true, could
reasonably be expected to result in a Material Adverse Effect, the
Company and any Subsidiary shall (a) provide prompt written notice
thereof to the Agents describing in reasonable detail the nature of the
matter and what action the Company or the applicable Subsidiary
proposes to take with respect thereto, and (b) within the time period
permitted by the applicable Environmental Law or the Governmental
Authority responsible for enforcing such Environmental Law, remove or
remedy, or cause the applicable Subsidiary to remove or remedy, such
violation or release or satisfy such liability, unless and only during
the period that the applicability of the Environmental Law, the fact of
such violation or liability or the action required to remove or remedy
such violation is being contested by the Company or the applicable
Subsidiary by appropriate proceedings diligently conducted and all
reserves with respect thereto as may be required under Generally
Accepted Accounting Principles, if any, have been made, and no Lien in
connection therewith shall have attached to any property of the Company
or the applicable Subsidiary which shall have become enforceable
against creditors of such Person.
(b) Except for Hazardous Materials necessary for the routine
maintenance of the properties owned or operated by the Company and its
Subsidiaries or as brought on to such properties in the ordinary course
of the Company's or any Subsidiary's business, which Hazardous Material
shall be used in compliance in all material respects with all
applicable Environmental Laws, the Company covenants that it shall, and
shall cause each Subsidiary to, not permit any Hazardous Materials to
be brought on to the real property owned or operated by the Company and
its Subsidiaries, or if so brought or found located thereon, shall be
immediately removed, with proper disposal, and all environmental
cleanup requirements shall be diligently undertaken pursuant to all
Environmental Laws unless the presence of such Hazardous Materials
could not reasonably be expected to result in a Material Adverse
Effect.
9.13 Further Assurances. At the Borrowers' cost and expense, upon
request of any of the Agents, duly execute and deliver or cause to be duly
executed and delivered, to the Agents such further instruments, documents and
certificates, and do and cause to be done such further acts that may be
reasonably necessary or advisable in the opinion of the Agents or any of them to
carry out more effectively the provisions and purposes of this Agreement and the
other Loan Documents.
9.14 Continued Operations. Continue at all times to conduct its
business and engage principally in the same line or lines of business
substantially as heretofore conducted.
9.15 Use of Proceeds. Use the proceeds of the Loans solely for the
purposes specified in Sections 2.11, 3.11, 4.11 and 5.11, as applicable.
9.16 Year 2000 Compliance.
(a) At the reasonable request of any Agent or Lender, make
available to such Agent or Lender the plan and time line referred to in
Section 8.02(n)(ii), together with any updates or progress reports with
respect thereto; and
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(b) Notify the Agents and the Lenders in the event the Company
discovers or determines that any computer application (including those
of its suppliers, vendors and customers) that is material to its or any
of its Subsidiaries' business and operations will not be Year 2000
Compliant, except to the extent that such failure could not reasonably
be expected to result in a Material Adverse Effect.
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ARTICLE X
Negative Covenants
Until the Total Facility Termination Date, unless the Required Lenders
shall otherwise consent in writing, the Company will not, nor will it permit any
Subsidiary to:
10.01 Consolidated Funded Indebtedness to Consolidated Total
Capitalization. Permit the ratio of Consolidated Funded Indebtedness to
Consolidated Total Capitalization to exceed 0.50 to 1.00 at any time.
10.02 Consolidated EBIT to Consolidated Interest Expense. Permit the
ratio of Consolidated EBIT to Consolidated Interest Expense for the Four-Quarter
Period immediately preceding the date of computation to be less than 3.00 to
1.00 at any time.
10.03 Liens. Incur, create or permit to exist any Lien, charge or other
encumbrance of any nature whatsoever with respect to any property or assets now
owned or hereafter acquired by the Company or any of its Subsidiaries, other
than
(a) Liens existing as of the date hereof, none of which were
granted in connection with any of the Prior Facilities, and (i) as set
forth in Schedule 10.03 attached hereto, (ii) as otherwise exist in
France, South Africa and Mexico or (iii) which attach only to office or
retail equipment;
(b) Liens imposed by law for taxes, assessments or charges of
any Governmental Authority for claims not yet due or which are being
contested in good faith by appropriate proceedings diligently
conducted, and with respect to which adequate reserves or other
appropriate provisions are being maintained in accordance with
Generally Accepted Accounting Principles;
(c) statutory or contractual Liens of landlords and Liens of
carriers, warehousemen, mechanics, materialmen and other Liens imposed
by law or created in the ordinary course of business and in existence
less than 90 days from the date of creation thereof for amounts not yet
due or which are being contested in good faith by appropriate
proceedings diligently conducted, and with respect to which adequate
reserves or other appropriate provisions are being maintained in
accordance with Generally Accepted Accounting Principles;
(d) Liens incurred or deposits made (i) in the ordinary course
of business (including, without limitation, performance and surety
bonds) in connection with workers' compensation, unemployment insurance
and other types of social security benefits or (ii) to secure the
performance of tenders, bids, leases, contracts (other than for the
repayment of Indebtedness), statutory obligations and other similar
obligations or arising as a result of progress payments under
government contracts;
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(e) easements (including reciprocal easement agreements and
utility agreements), rights-of-way, covenants, consents, reservations,
encroachments or title defects, variations and zoning and other
restrictions, charges or encumbrances (whether or not recorded)
affecting real property, which do not interfere materially with the
ordinary conduct of the business of the Company or any Subsidiary and
which do not materially detract from the value of the property to which
they attach or materially impair the use thereof to the Company or any
Subsidiary;
(f) purchase money Liens to secure Indebtedness for Money
Borrowed incurred to purchase fixed assets, provided such Indebtedness
represents not more than 100% of the purchase price of such assets as
of the date of purchase thereof and no property other than the assets
so purchased secures such Indebtedness;
(g) Liens arising in connection with Capital Leases provided
that no such Lien shall extend to or cover any property or assets other
than assets subject to the Capital Leases; and
(h) other Liens not otherwise permitted by paragraphs (a)
through (g) of this Section 10.03 to secure Indebtedness for Money
Borrowed in an aggregate principal amount outstanding that does not
result in a Default under Section 10.01 or 10.02.
10.04 Transfer of Assets. Sell, lease, transfer or otherwise dispose of
any assets of the Company or any Subsidiary other than:
(a) dispositions of inventory in the ordinary course of
business;
(b) dispositions of assets or property that are (i)
substantially worn, damaged, obsolete, (ii) in the judgment of the
Company, no longer useful in its business or that of any Subsidiary or
(iii) replaced within a reasonable period of time with assets, property
of similar or better quality performing similar functions; and
(c) transfers of assets necessary to give effect to merger or
consolidation transactions permitted by Section 10.05.
10.05 Merger or Consolidation.
(a) Consolidate with or merge into any other Person; or
(b) permit any other Person to merge into it;
provided, however, that any Person may merge into the Company or any other
Borrower so long as no Default or Event of Default occurs or is created or
results from such transaction; and provided further, that any Subsidiary which
is not a Borrower may merge with and into any other entity if the survivor is or
becomes a Subsidiary of the Company.
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10.06 Transactions with Affiliates. Enter into any transaction after
the Closing Date, including, without limitation, the purchase, sale, lease or
exchange of property, real or personal, or the rendering of any service, with
any Affiliate of the Company, except (a) that such Persons may render services
to the Company or its Subsidiaries for compensation at the same rates generally
paid by Persons engaged in the same or similar businesses for the same or
similar services, (b) that the Company or any Subsidiary may render services to
such Person for compensation at the same rates generally charged by the Company
or such Subsidiary, (c) in the case of either (a) or (b), in the ordinary course
of business and pursuant to the reasonable requirements of the Company's (or any
Subsidiary's) business and consistent with past practice of the Company and its
Subsidiaries and upon fair and reasonable terms no less favorable to the Company
(or any Subsidiary) than would be obtained in a comparable arm's-length
transaction with a Person not an Affiliate, and (d) that the Company or its
Subsidiaries may continue those transactions described on Schedule 10.06
attached hereto.
10.07 ERISA. With respect to any Pension Plan, Employee Benefit Plan or
Multiemployer Plan:
(a) permit the occurrence of any Termination Event which would
result in any material liability on the part of the Company, any ERISA
Affiliate, or any Subsidiary to the PBGC or any Governmental Authority;
or
(b) permit the present value of all benefit liabilities under
all Employee Benefit Plans to exceed materially the current value of
the assets of such Employee Benefit Plans allocable to such benefit
liabilities; or
(c) permit any material accumulated funding deficiency (as
defined in Section 302 of ERISA and Section 412 of the Code) with
respect to any Pension Plan, whether or not waived; or
(d) fail to make any contribution or payment to any
Multiemployer Plan which the Company or any ERISA Affiliate may be
required to make under any agreement relating to such Multiemployer
Plan, or any law pertaining thereto; or
(e) engage, or permit the Company or any ERISA Affiliate to
engage, in any prohibited transaction under Section 406 of ERISA or
Sections 4975 of the Code for which a material civil penalty pursuant
to Section 502(I) of ERISA or a material tax pursuant to Section 4975
of the Code may be imposed; or
(f) permit the establishment of any Employee Benefit Plan
providing post-retirement welfare benefits or establish or amend any
Employee Benefit Plan which establishment or amendment could result in
material liability to the Company or any ERISA Affiliate or any
Subsidiary or materially increase the obligation of the Company or any
ERISA Affiliate or any Subsidiary to a Multiemployer Plan; or
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(g) fail, or permit the Company or any ERISA Affiliate or any
Subsidiary to fail, to establish, maintain and operate each Employee
Benefit Plan in compliance with the provisions of ERISA, the Code, all
applicable Foreign Benefit Laws and all other applicable laws and the
regulations and interpretations thereof except for such failure that
could not reasonably be expected to result in a Material Adverse
Effect.
10.08 Acquisitions. Enter into any agreement, contract, binding
commitment or other arrangement providing for, or otherwise effect, the
acquisition of a controlling equity or other ownership interest in, or all or
substantially all of the assets of, any Person, or take any action to solicit
the tender of securities or proxies in respect thereof in order to effect any
such acquisition, other than Permitted Acquisitions.
10.09 Negative Pledge. Enter into or cause, suffer or permit to exist
any agreement with any Person other than the Agents and the Lenders pursuant to
this Agreement or any other Loan Documents which prohibits or limits the ability
of the Company or any Subsidiary to create, incur, assume or suffer to exist any
Lien upon any of its property, assets or revenues, whether now owned or
hereafter acquired.
10.10 Dissolution, Etc. Wind up, liquidate or dissolve (voluntarily or
involuntarily) or commence or suffer any proceedings seeking any such winding
up, liquidation or dissolution, except in connection with a merger or
consolidation permitted pursuant to Section 10.05 hereof.
10.11 Restrictive Agreements. Enter into or cause, suffer or permit to
exist any agreement with any other Person which prohibits, limits or restricts
the ability of any Subsidiary to make any payments, directly or indirectly, to
the Borrowers by way of dividends, advances, repayments of loans or advances, or
other returns on investments, or any other agreement or arrangement which
restricts the ability of any such Subsidiary to make any payment, directly or
indirectly, to the Borrowers.
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ARTICLE XI
Events of Default and Acceleration
11.01 Events of Default. If any one or more of the following events
(herein called "Events of Default") shall occur for any reason whatsoever (and
whether such occurrence shall be voluntary or involuntary or come about or be
effected by operation of law or pursuant to or in compliance with any judgment,
decree or order of any court or any order, rule or regulation of any
Governmental Authority), that is to say:
(a) if default shall be made in the due and punctual payment
of the principal of any Loan, when and as the same shall be due and
payable whether pursuant to any provision of Article II, Article III,
Article IV or Article V hereof, at maturity, by acceleration or
otherwise; or
(b) if default shall be made in the due and punctual payment
of any amount of interest on any Loan or in the due and punctual
payment of any other obligation or of any fees or other amounts payable
to any of the Lenders or the Agents on the date on which the same shall
be due and payable and such default shall continue for five (5) days
following the date such payment is due; or
(c) if default shall be made in the performance or observance
of any covenant set forth in Sections 9.07, 9.10, 9.11, 9.14, 9.15 or
9.16 or Article X hereof; or
(d) (i) if a default shall be made in the performance or
observance of, or shall occur under, any covenant, agreement or
provision contained in this Agreement (other than as described in
clause (a), (b) or (c) above) and such default shall continue for
thirty (30) or more days after the earlier of receipt of notice of such
default by the Authorized Representative from any Agent or any Borrower
becomes aware of such default, or (ii) if a default shall be made in
the performance or observance of, or shall occur under, any covenant,
agreement or provision contained in any of the other Loan Documents
(including without limitation failure of the Guarantor to pay to the
Lenders all of the Guarantors' Obligations in accordance with and as
defined in, the Guaranty on the Business Day on which such payment has
been demanded in accordance with the terms of the Guaranty) or in any
instrument or document evidencing or creating any obligation, guaranty,
Lien or security interest in favor of any Agent or any Lender or
delivered to any of the Lenders in connection with or pursuant to this
Agreement or any of the Obligations (beyond any applicable grace period
contained therein), or (iii) if any Loan Document ceases to be in full
force and effect (other than by reason of any action by any Agent or
any Lender), or (iv) if without the written consent of all the Lenders,
this Agreement or any other Loan Document shall be disaffirmed or shall
terminate, be terminable or be terminated or become void or
unenforceable for any reason whatsoever (other than in accordance with
its terms in the absence of default or by reason of any action by the
Agents or any Lender); or
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(e) if there shall occur (i) a default, which is not waived,
in the payment of any principal, interest, premium or other amount with
respect to any Indebtedness (other than the Loans and other
Obligations) of the Company or any Subsidiary and the amount of such
Indebtedness is not less than the US Dollar Equivalent Amount of US
$20,000,000 in the aggregate outstanding, or (ii) any other event of
default as specified in any agreement or instrument under or pursuant
to which any such Indebtedness may have been issued, created, assumed,
guaranteed or secured by the Borrower or any Subsidiary, and in any
such case set forth in clause (i) or (ii) above, such default or event
of default shall continue for more than the period of grace, if any,
therein specified, or such default or event of default shall permit
(or, with the giving of notice or lapse of time or both, would permit)
the holder of any such Indebtedness (or any agent or trustee acting on
behalf of one or more holders) to accelerate the maturity thereof; or
(f) if any representation, warranty or other statement of fact
contained herein or in any other Loan Document shall be false or
misleading in any material respect when given; or
(g) if the Company or any Subsidiary shall be unable to pay
its debts generally as they become due; file a petition to take
advantage of any insolvency statute; make an assignment for the benefit
of its creditors; commence a proceeding for the appointment of a
custodian, receiver, trustee, liquidator or conservator of itself or of
the whole or any substantial part of its property; file a petition or
answer seeking receivership, liquidation, reorganization or arrangement
or similar relief under the federal bankruptcy laws or any other
applicable law or statute; or
(h) if a court of competent jurisdiction shall enter an order,
judgment or decree appointing a custodian, receiver, trustee,
liquidator or conservator of the Company or any Subsidiary or of the
whole or any substantial part of its properties and such order,
judgment or decree continues unstayed and in effect for a period of
sixty (60) days, or approve a petition filed against the Company or any
Subsidiary seeking receivership, liquidation, reorganization or
arrangement or similar relief under the federal bankruptcy laws or any
other applicable law or statute of the United States of America or any
state or similar law of any other country or province thereof, which
petition is not dismissed within sixty (60) days; or if, under the
provisions of any other law for the relief or aid of debtors, a court
of competent jurisdiction shall assume custody or control of the
Company or any Subsidiary or of the whole or any substantial part of
its properties, which control is not relinquished within sixty (60)
days; or if there is commenced against the Company or any Subsidiary
any proceeding or petition seeking receivership, liquidation,
reorganization, arrangement or similar relief under the federal
bankruptcy laws or any other applicable law or statute of the United
States of America or any state or similar law of any other country or
province thereof, which proceeding or petition remains undismissed for
a period of sixty (60) days; or if the Company or any Subsidiary takes
any action to indicate its consent to or approval of any such
proceeding or petition; or
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(i) if (i) one or more judgments or orders for the payment of
money where the amount not covered by insurance (or the amount as to
which the insurer denies liability) is in an aggregate amount in excess
of the US Dollar Equivalent Amount of US $20,000,000 is rendered
against the Company or any Subsidiary, or (ii) there is any attachment,
injunction or execution against any of the Company's or any
Subsidiary's properties for any amount in excess of the US Dollar
Equivalent Amount of US $20,000,000 in the aggregate; and such
judgment, attachment, injunction or execution remains unpaid, unstayed,
undischarged, unbonded or undismissed for a period of thirty (30) days;
or
(j) if there shall occur any Change of Control;
then, and in any such event and at any time thereafter, if such Event of Default
or any other Event of Default shall then be continuing,
(A) either or both of the following actions may be
taken: (i) the Global Agent, with the consent of the Required
Lenders with respect to the Total Facilities, may, and at the
direction of the Required Lenders with respect to the Total
Facilities, shall, declare any obligation of the Lenders to
make further Loans terminated, whereupon the obligation of
each Lender to make further Loans hereunder shall terminate
immediately, and (ii) the Global Agent shall at the direction
of the Required Lenders with respect to the Total Facilities,
at their option, declare by notice to the Borrowers any or all
of the Obligations to be immediately due and payable, and the
same, including all interest accrued thereon and all other
obligations of the Borrowers to the Agents and the Lenders,
shall forthwith become immediately due and payable without
presentment, demand, protest, notice or other formality of any
kind, all of which are hereby expressly waived, anything
contained herein or in any instrument evidencing the
Obligations to the contrary notwithstanding; provided,
however, that notwithstanding the above, if there shall occur
an Event of Default under clause (g) or (h) above, then the
obligations of the Lenders to make Loans hereunder shall
automatically terminate and any and all of the Obligations
shall be immediately due and payable without the necessity of
any action by the Global Agent or the Required Lenders with
respect to the Total Facilities or notice by the Global Agent
or the Required Lenders with respect to the Total Facilities;
provided further, however, that neither the Required Lenders
with respect to a specific Facility nor the Applicable
Facility Agent shall have any power or authority under this
Section 11.01 separate or apart from that of the Required
Lenders of the Total Facilities; and
(B) The Agents and each of the Lenders shall have all
of the rights and remedies available under the Loan Documents
or under any applicable law.
11.02 Global Agent to Act. In case any one or more Events of Default
shall occur and be continuing, the Global Agent may, and at the direction of the
Required Lenders with respect to the Total Facilities shall, proceed to protect
and enforce their rights or remedies either by suit in equity or by action at
law, or both, whether for the specific performance of any covenant, agreement or
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other provision contained herein or in any other Loan Document, or to enforce
the payment of the Obligations or any other legal or equitable right or remedy.
11.03 Cumulative Rights. No right or remedy herein conferred upon the
Lenders or the Agents is intended to be exclusive of any other rights or
remedies contained herein or in any other Loan Document, and every such right or
remedy shall be cumulative and shall be in addition to every other such right or
remedy contained herein and therein or now or hereafter existing at law or in
equity or by statute, or otherwise.
11.04 No Waiver. No course of dealing between the Borrowers and any
Lender or any Agent or any failure or delay on the part of any Lender or any
Agent in exercising any rights or remedies under any Loan Document or otherwise
available to it shall operate as a waiver of any rights or remedies and no
single or partial exercise of any rights or remedies shall operate as a waiver
or preclude the exercise of any other rights or remedies hereunder or of the
same right or remedy on a future occasion.
11.05 Allocation of Proceeds. If an Event of Default has occurred and
not been waived, and the maturity of the Obligations has been accelerated
pursuant to Article XI hereof, all payments received by the Agents hereunder in
respect of any principal of or interest on the Obligations or any other amounts
payable by the Borrowers hereunder shall be applied by the Agents in the
following order:
(a) amounts due to the Lenders pursuant to Sections 2.09,
3.09, 4.09, 5.09 and 13.05 hereof, to be applied for the ratable
benefit of the lenders without distinction or preference as among
facilities;
(b) amounts due to the Agents pursuant to Section 12.08
hereof, to be applied for the ratable benefit of the Agents;
(c) payments of interest on Loans, to be applied for the
ratable benefit of the Lenders, without distinction or preference as
among Australian Facility Loans, Canadian Facility Loans, UK Facility
Loans and US Facility Loans;
(d) payments of principal on Loans, to be applied for the
ratable benefit of the Lenders, without distinction or preference as
among Australian Facility Loans, Canadian Facility Loans, UK Facility
Loans and US Facility Loans;
(e) amounts due to the Agents or the Lenders pursuant to
Section 13.10, to be applied for the ratable benefit of the Agents and
the Lenders;
(f) payments of all other Obligations due under any of the
Loan Documents, if any, to be applied for the ratable benefit of the
Lenders and the Agents; and
(g) any surplus remaining after application as provided for
herein, to the Borrowers or as otherwise may be required by applicable
law.
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11.06 Judgment Currency. The Borrowers, the Agents and each Lender
hereby agree that if, in the event that a judgment is given in relation to any
sum due to any Agent or any Lender hereunder, such judgment is given in a
currency (the "Judgment Currency") other than that in which such sum was
originally denominated (the "Original Currency"), the Borrowers agree to
indemnify such Agent or Lender, as the case may be, to the extent that the
amount of the Original Currency which could have been purchased thereby in
accordance with normal banking procedures on the Business Day following receipt
of such sum is less than the sum which could have been so purchased thereby had
such purchase been made on the day on which such judgment was given or, if such
day is not a Business Day, on the Business Day immediately preceding the giving
of such judgment, and if the amount so purchased exceeds the amount which could
have been so purchased thereby had such purchase been made on the day on which
such judgment was given or, if such day is not a Business Day, on the Business
Day immediately preceding such judgment, such Agent or Lender agrees to remit
such excess to the Borrowers. The agreements in this Section 11.06 shall survive
payment of any such judgment.
11.07 Funding and Payment of Participations; Conversion to US Dollars.
(a) At any time after the occurrence and during the continuance of an
Event of Default, the Applicable Lenders having Applicable Fronting Commitments
aggregating more than 50% of the Applicable Total Facility Commitment with
respect to any specific Facility (the "Required Fronting Lenders") may, by
written notice to the Applicable Facility Agent (with a copy to the Company and
the Global Agent) not later than 11:00 A.M. (local time of the Principal Office
of the Applicable Facility Agent) on the second Business Day preceding the
proposed date of funding and payment by each Lender of all Participations
purchased in such Facility as provided in Article II, Article III, Article IV,
or Article V hereof (the "Facility Participation Payment Date"), request each
Lender to fund and pay for its Participation in such Facility and deliver to the
Applicable Facility Agent on the Facility Participation Payment Date an
aggregate amount of the Applicable Currency equal to such Participation (or the
British Pounds Sterling Equivalent Amount or Australian Dollar Equivalent Amount
of such Participation, as applicable). At the option of such Required Fronting
Lenders, and as set forth in such notice, (i) all outstanding Loans under such
Facility immediately shall be converted into Loans denominated in US Dollars in
an aggregate principal amount equal to the US Dollar Equivalent Amount of the
aggregate principal amount of such Loans based on the Spot Rate of Exchange on
such Facility Participation Payment Date, and (ii) each such Participation shall
be funded in an aggregate amount of US Dollars equal to the US Dollar Equivalent
Amount of such Participation. The Applicable Facility Agent will promptly
provide written notice of any such request to the other Facility Agents, who
shall promptly provide notice thereof to the Lenders in their respective
Facilities.
(b) On the applicable Facility Participation Payment Date, each
Participant in the specific Facility shall deliver the amount of such
Participant's Facility Participation Amount with respect to such Facility in the
Applicable Currency and in Same Day Funds to the Applicable Facility Agent;
provided, however, that no Participant shall be responsible for any default by
any other Participant in such other Participant's obligation to pay such amount.
Upon receipt of any such amounts from the Participants, the Applicable Facility
Agent shall distribute such amounts in Same Day Funds to the Applicable Lenders
in such amounts such that, after such distribution, each Applicable Lender and
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each Participant in such Facility has a Facility Credit Exposure under such
Facility, expressed as a percentage of the Aggregate Facility Credit Exposure
under such Facility, equal to its Applicable Commitment Percentage. In order to
evidence further such Participation (and without prejudice to the effectiveness
of the Participation provisions set forth above), each Participant agrees to
enter into a separate participation agreement at the request of any Applicable
Lender in such Facility in form and substance reasonably satisfactory to such
Lender.
(c) In the event that any Participant fails to make available to the
Applicable Facility Agent the amount of its Participation as provided herein,
the Applicable Facility Agent shall be entitled to recover such amount on behalf
of the Applicable Lenders on demand from such Participant together with interest
at the customary rate set by such Applicable Facility Agent for the correction
of errors among banks for three (3) Business Days and thereafter at a rate per
annum equal to the Applicable Base Rate with respect to such Facility (or, with
respect to the UK Facility, the Default Rate). A certificate of the Applicable
Facility Agent submitted to any Lender with respect to amounts owing hereunder
shall be conclusive in the absence of manifest error.
(d) In the event that any Applicable Lender in a specific Facility
receives a payment in respect of any Loan made under such Facility, whether
directly from the Applicable Borrower or Borrowers or otherwise, in which
Participants have purchased Participations, such Applicable Lender shall
promptly distribute to the Applicable Facility Agent, for distribution to each
such Participant that has paid all such amounts payable by it hereunder with
respect to any Loan made under such Facility by such Applicable Lender, such
Participant's Applicable Commitment Percentage of such payment. Any payment to
any Participant pursuant to the preceding sentence shall be made in US Dollars
or Applicable Currency (whichever currency was delivered for payment of such
Participation) in Same Day Funds by such Applicable Facility Agent. If any
payment received by any Applicable Lender in a specific Facility pursuant to the
immediately preceding sentence with respect to any Loan made under such Facility
by it shall be required to be returned by such Applicable Lender after such time
as such Applicable Lender has distributed such payment to the Applicable
Facility Agent, each Participant that has received a portion of such payment
shall pay to such Applicable Lender an amount equal to its Applicable Commitment
Percentage of such amount to be returned; provided, however, that no Participant
shall be responsible for any default by any other Participant in that other
Participant's obligation to pay such amount.
(e) Anything contained herein to the contrary notwithstanding, each
Participant's obligation to pay for its purchase of Participations pursuant to
subsection (a) shall be absolute, irrevocable and unconditional and shall not be
affected by any circumstance, including, without limitation, (i) any set-off,
counterclaim, recoupment, defense or other right which such Lender or
Participant may have against any Applicable Lender, the Applicable Facility
Agent, any Borrower or any other Person for any reason whatsoever; (ii) the
occurrence or continuance of an Event of Default or a Default; (iii) any adverse
change in the condition (financial or otherwise) of any Borrower; (iv) any
breach of this Agreement or any other Loan Document by any Borrower, the
Guarantor or any other Lender; or (v) any other circumstance, happening or event
whatsoever, whether or not similar to any of the foregoing.
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(f) Anything contained in this Agreement to the contrary
notwithstanding, no amendment, modification, termination or waiver of any
provision of this Agreement or of the other Loan Documents, and no consent to
any departure by any Borrower therefrom, shall (i) modify, terminate or waive
any provision of this Section 11.07 in any manner adverse to any Lender without
the written concurrence of such Lender, or (ii) modify, terminate or waive any
provision of this Section 11.07 in any manner adverse to any Participant without
the written concurrence of such Participant.
(g) In no event shall (i) the Participation of any Participant in any
Loans pursuant to this Section 11.07 be construed as a loan or other extension
of credit by such Participant to any Borrower, any Lender or any Facility Agent,
(ii) this Agreement be construed to require any Participant to make any Loans or
to otherwise extend any credit to any Borrower, any Lender or any Agent under
this Agreement or under the other Loan Documents, or (iii) this Agreement be
construed to require any Participant to fund or pay any amount in respect of its
Participation in any Loan except as set forth herein.
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ARTICLE XII
The Agents
12.01 Appointment, Powers, and Immunities. Each Lender hereby
irrevocably appoints and authorizes NationsBank to act as the Global Agent,
National City Bank to act as the US Facility Agent, NationsBank to act as the UK
Facility Agent, Bank of America Canada to act as the Canadian Facility Agent and
Bank of America to act as the Australian Facility Agent under this Agreement and
the other Loan Documents with such powers and discretion as are specifically
delegated to the Global Agent and the Applicable Facility Agent by the terms of
this Agreement and the other Loan Documents, together with such other powers as
are reasonably incidental thereto. Each Agent (which terms as used in this
Article hereof shall include its affiliates and its own and its affiliates'
officers, directors, employees, and agents):
(a) shall not have any duties or responsibilities except those
expressly set forth in this Agreement and shall not be a trustee or
fiduciary for any Lender;
(b) shall not be responsible to the Lenders for any recital,
statement, representation, or warranty (whether written or oral) made
in or in connection with any Loan Document or any certificate or other
document referred to or provided for in, or received by any of them
under, any Loan Document, or for the value, validity, effectiveness,
genuineness, enforceability, or sufficiency of any Loan Document, or
any other document referred to or provided for therein or for any
failure by any Borrower or any other Person to perform any of its
obligations thereunder;
(c) shall not be responsible for or have any duty to
ascertain, inquire into, or verify the performance or observance of any
covenants or agreements by any Borrower or the satisfaction of any
condition or to inspect the property (including the books and records)
of any Borrower or any of its Subsidiaries or affiliates;
(d) shall not be required to initiate or conduct any
litigation or collection proceedings under any Loan Document; and
(e) shall not be responsible for any action taken or omitted
to be taken by it under or in connection with any Loan Document, except
for its own gross negligence or willful misconduct.
Each Agent may employ agents and attorneys-in-fact and shall not be
responsible for the negligence or misconduct of any such agents or
attorneys-in-fact selected by it with reasonable care.
12.02 Reliance by Agents. Each Agent shall be entitled to rely upon any
certification, notice, instrument, writing, or other communication (including,
without limitation, any thereof by telephone or telefacsimile) believed by it to
be genuine and correct and to have been signed, sent or made by or on behalf of
the proper Person or Persons, and upon advice and statements of legal counsel
(including counsel for any Borrower), independent accountants, and other experts
selected by such
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Agent. As to any matters not expressly provided for by this Agreement, none of
the Agents shall be required to exercise any discretion or take any action, but
shall be required to act or to refrain from acting (and shall be fully protected
in so acting or refraining from acting) upon the instructions of the Required
Lenders with respect to the Total Facilities, in the case of the Global Agent,
or the Required Lenders with respect to a specific Facility or with respect to
the Total Facilities, as the context may require, in the case of any Agent, and
such instructions shall be binding on all of the Applicable Lenders; provided,
however, no Agent shall be required to take any action that exposes it to
personal liability or that is contrary to any Loan Document or applicable law or
unless it shall first be indemnified to its satisfaction by the Applicable
Lenders against any and all liability and expense which may be incurred by it by
reason of taking any such action.
12.03 Defaults. No Agent shall be deemed to have knowledge or notice of
the occurrence of a Default or Event of Default unless it has received written
notice from another Agent or a Lender or a Borrower specifying such Default or
Event of Default and stating that such notice is a "Notice of Default";
provided, that each Lender shall use its best reasonable efforts to deliver such
notice to its Applicable Facility Agent upon its knowledge of any Default or
Event of Default; provided further, that the failure to deliver such notice
shall not result in any liability to any other Lender or Agent. In the event
that any Facility Agent receives such a notice of the occurrence of a Default or
Event of Default, such Facility Agent shall give prompt notice thereof to the
Applicable Lenders in its specific Facility and the other Agents, including the
Global Agent. In the event that the Global Agent receives such a notice of the
occurrence of a Default or Event of Default, the Global Agent shall give prompt
notice thereof to all Facility Agents. The Global Agent shall (subject to
Section 12.02 hereof) take such action with respect to such Default or Event of
Default as shall reasonably be directed by the Required Lenders with respect to
the Total Facilities, provided that, unless and until the Global Agent shall
have received such directions, the Global Agent may (but shall not be obligated
to) take such action, or refrain from taking such action, with respect to such
Default or Event of Default as it shall deem advisable in the best interest of
the Lenders.
12.04 Rights as Lender. With respect to its Applicable Facility
Commitments and the Loans made by it, each of NationsBank (and any successor
acting as Global Agent), National City Bank (and any successor acting as US
Facility Agent), NationsBank (and any successor acting as UK Facility Agent),
Bank of America Canada (and any successor acting as Canadian Facility Agent) and
Bank of America (or any successor acting as Australian Facility Agent) in its
capacity as a Lender hereunder shall have the same rights and powers hereunder
as any other Lender and may exercise the same as though it were not acting as
the Global Agent, US Facility Agent, UK Facility Agent, Canadian Facility Agent
or Australian Facility Agent, as applicable, and the term "Lender" or "Lenders"
shall, unless the context otherwise indicates, include each of the Agents in its
individual capacity. Each of NationsBank (and any successor acting as Global
Agent), National City Bank (and any successor acting as US Facility Agent),
NationsBank (and any successor acting as UK Facility Agent), Bank of America
Canada (and any successor acting as Canadian Facility Agent) and Bank of America
(or any successor acting as Australian Facility Agent) and their respective
affiliates may (without having to account therefor to any Lender) accept
deposits from, lend money to, make investments in, provide services to, and
generally engage in any kind of lending, trust, or other business with any
Borrower or any of its Subsidiaries or affiliates as if it were not acting as
Global Agent, US Facility Agent, UK Facility Agent, Canadian Facility Agent or
Australian Facility Agent,
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as applicable, and each of NationsBank (and any successor acting as Global
Agent), National City Bank (and any successor acting as US Facility Agent),
NationsBank (and any successor acting as UK Facility Agent), Bank of America
Canada (and any successor acting as Canadian Facility Agent) and Bank of America
(and any successor acting as Australian Facility Agent) and their respective
affiliates may accept fees and other consideration from any Borrower or any of
its Subsidiaries or affiliates for services in connection with this Agreement or
otherwise without having to account for the same to the Lenders.
12.05 Indemnification. The Lenders agree to indemnify the Agents (to
the extent not reimbursed under Section 13.10 hereof, but without limiting the
obligations of the Borrowers under such Section), for any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses (including attorneys' fees), or disbursements of any kind and nature
whatsoever that may be imposed on, incurred by or asserted against any of the
Agents (including by any Lender) in any way relating to or arising out of any
Loan Document or the transactions contemplated thereby or any action taken or
omitted by any of the Agents under any Loan Document; provided that no Lender
shall be liable for any of the foregoing to the extent they arise from the gross
negligence or willful misconduct of the Person to be indemnified. Without
limitation of the foregoing, each Lender agrees to reimburse the Agents promptly
upon demand for its or their ratable share (based on their Applicable Commitment
Percentages) of any costs or expenses payable by the Borrowers under Section
13.06, to the extent that the Agents are not promptly reimbursed for such costs
and expenses by the Borrowers. The agreements contained in this Section shall
survive payment in full of the Obligations, termination of each Commitment and
the occurrence of the Total Facility Termination Date.
12.06 Non-Reliance on Agents and Other Lenders. Each Lender agrees that
it has, independently and without reliance on any of the Agents or any other
Lender, and based on such documents and information as it has deemed
appropriate, made its own credit analysis of the Borrowers and their
Subsidiaries and decision to enter into this Agreement and that it will,
independently and without reliance upon any of the Agents or any other Lender,
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own analysis and decisions in taking or not taking
action under the Loan Documents. Except for notices, reports, and other
documents and information expressly required to be furnished to the Lenders by
the Agents hereunder, the Agents shall not have any duty or responsibility to
provide any Lender with any credit or other information concerning the affairs,
financial condition, or business of any Borrower or any of its Subsidiaries or
affiliates that may come into the possession of any of the Agents or any of its
affiliates.
12.07 Resignation of an Agent. Any of the Agents may resign at any time
by giving notice thereof (a) with respect to the resignation of the Global
Agent, to the Lenders, the Borrowers and the Facility Agents, and (b) with
respect to the resignation of any Applicable Facility Agent, to the Applicable
Lenders, the Applicable Borrowers, the Company and the Global Agent. Upon any
such resignation of the Global Agent, the Required Lenders with respect to the
Total Facilities shall have the right to appoint a successor Global Agent, which
shall be a Lender under the Total Facilities at such time and which, so long as
no Default or Event of Default exists, shall be acceptable to the Company, which
acceptance shall not be unreasonably withheld or delayed. Upon any such
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resignation of an Applicable Facility Agent, the Required Lenders with respect
to the specific Facility shall have the right to appoint a successor Facility
Agent for such Facility, which shall be a Lender under such Facility at such
time and which, so long as no Default or Event of Default exists, shall be
acceptable to the Company, which acceptance shall not be unreasonable withheld
or delayed. If no successor Global Agent or Applicable Facility Agent shall have
been so appointed and shall have accepted such appointment within thirty (30)
days after the retiring Global Agent or Applicable Facility Agent's giving of
notice of resignation, then the resignation of the retiring Global Agent or
Applicable Facility Agent as the case may be, shall nonetheless thereupon be
effective and the Facility Agents, in the case of the Global Agent's
resignation, or the Applicable Facility Lenders, in the case of an Applicable
Facility Agent's resignation, shall perform all the obligations of the retiring
Agent hereunder until such time, if any, as the Required Lenders shall appoint a
successor Agent as provided for above. Upon the acceptance of any appointment as
Global Agent or Applicable Facility Agent hereunder by a successor, such
successor shall thereupon succeed to and become vested with all the rights,
powers, discretion, privileges, and duties of the retiring Global Agent or
Applicable Facility Agent, and the retiring Global Agent or Applicable Facility
Agent shall be discharged from its duties and obligations hereunder. After any
retiring Global Agent or Applicable Facility Agent's resignation hereunder as
Global Agent or Applicable Facility Agent, the provisions of this Article XII
shall continue in effect for its benefit in respect of any actions taken or
omitted to be taken by it while it was acting as Global Agent or Applicable
Facility Agent.
12.08 Fees. The Borrowers agree to pay to each of the Agents, for its
individual account, an annual fee as from time to time agreed to by the
Borrowers and the Global Agent or Applicable Facility Agent, as applicable, in
writing.
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ARTICLE XIII
Miscellaneous
13.01 Assignments and Participations.
(a) Each Lender may assign to one or more Eligible Assignees all or a
portion of its rights and obligations under this Agreement (including, without
limitation, all or a portion of its Loans, its Notes, its Applicable Facility
Commitments, its Applicable Fronting Commitments and its Participations);
provided, however, that
(i) each such assignment shall be to an Eligible Assignee;
(ii) except in the case of an assignment to another Lender or
an assignment of all of a Lender's rights and obligations in the US
Facility, UK Facility, Canadian Facility or Australian Facility,
respectively, under this Agreement, any such partial assignment shall
be in an amount at least equal to US $5,000,000 of such Lender's US
Facility Commitment, pound 3,000,000 of such Lender's UK Facility
Commitment (if any), CAN $7,000,000 of such Lender's Canadian Facility
Commitment (if any) and AUS $5,000,000 of such Lender's Australian
Facility Commitment (if any);
(iii) each such assignment by a Lender shall be of a constant,
and not varying, percentage of all of its rights and obligations
(including Loans, Applicable Facility Commitments, Applicable Fronting
Commitments and Participations) under this Agreement with respect to
each Facility;
(iv) the parties to such assignment shall execute and deliver
to the Applicable Facility Agent and the Global Agent for their
acceptance an Assignment and Acceptance in the form of Exhibit B
hereto, together with any Note subject to such assignment and a
processing fee of US $5,000 payable pro rata to the Global Agent and
each Applicable Facility Agent;
(v) each assignee must be a US Facility Lender and a Lender
under at least one (1) additional Facility after giving effect to any
assignment hereunder; and
(vi) such assignee shall have an office located in the United
States.
Upon execution, delivery, and acceptance of such Assignment and
Acceptance, the assignee thereunder shall be a party hereto and, to the
extent of such assignment, have the obligations, rights, and benefits
of a Lender hereunder and the assigning Lender shall, to the extent of
such assignment, relinquish its rights and be released from its
obligations under this Agreement. Upon the consummation of any
assignment pursuant to this Section, the assignor, the Applicable
Facility Agent and the Applicable Borrowers shall make appropriate
arrangements so that, if required, new Notes are issued to the assignor
and the assignee. If the assignee is not incorporated under the laws of
the appropriate jurisdiction for the Applicable Facilities,
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it shall deliver to the Borrowers and the Applicable Facility Agent
certification as to exemption from deduction or withholding of Taxes in
accordance with Section 6.06.
(b) Each Applicable Facility Agent shall maintain at its address
referred to in Section 13.02 a copy of each Assignment and Acceptance delivered
to and accepted by it and a register for the recordation of the names and
addresses of the Applicable Lenders and each Applicable Facility Commitment of,
and principal amount of the Outstandings owing to, each such Applicable Lender
from time to time (the "Register"). The entries in the Register shall be
conclusive and binding for all purposes, absent manifest error, and the
Applicable Borrowers, the Global Agent, the Applicable Facility Agent and the
Applicable Lender may treat each Person whose name is recorded in the Register
as a Lender hereunder under the Applicable Facility for all purposes of this
Agreement. The Register shall be available for inspection by any Applicable
Borrower or any Applicable Lender at any reasonable time and from time to time
upon reasonable prior notice.
(c) Upon its receipt of an Assignment and Acceptance executed by the
parties thereto, together with any Note subject to such assignment and payment
of the processing fee, the Global Agent and the Applicable Facility Agent shall,
if such Assignment and Acceptance has been completed and is in substantially the
form of Exhibit B hereto, accept such Assignment and Acceptance and record the
information contained therein in the Register, and the Applicable Facility Agent
shall thereafter give prompt notice thereof to the parties thereto.
(d) Each Lender may sell participations to one or more Persons in all
or a portion of its rights and obligations under this Agreement (including all
or a portion of its Applicable Facility Commitments, Applicable Fronting
Commitments, Participations and Outstandings owing thereto); provided, however,
that (i) such Lender's obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto for
the performance of such obligations, (iii) the participant shall be entitled to
the benefit of the yield protection provisions contained in Article VI and the
right of set-off contained in Section 13.03, (iv) the Applicable Borrowers and
Applicable Lenders shall continue to deal solely and directly with such Lender
in connection with such Lender's rights and obligations under this Agreement,
and (v) such Lender shall retain the sole right to enforce the obligations of
the Applicable Borrowers relating to its Loans and its Notes and its
Participations and to approve any amendment, modification, or waiver of any
provision of this Agreement (other than amendments, modifications, or waivers
decreasing or reducing the amount of principal of or the rate at which interest
is payable or the amount of fees payable on such Loans or Notes, extending any
scheduled principal payment date or date fixed for the payment of interest on
such Loans or Notes, releasing the Guarantor or any Borrower or providing for
any assignment of their Obligations, or extending any Applicable Facility
Commitment of such Lender), each of which may, if so agreed in writing, require
the prior consent of any such participant in such Lender's Commitments and
Participations and Outstandings owing thereto before such Lender approves any
such amendment, modification or waiver.
(e) Notwithstanding any other provision set forth in this Agreement,
any Lender may at any time assign and pledge all or any portion of its Loans,
its Notes, its Obligations and its interest under the Loan Documents to any
Federal Reserve Bank as collateral security pursuant to
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Regulation A and any Operating Circular issued by such Federal Reserve Bank. No
such assignment shall release the assigning Lender from its obligations
hereunder.
(f) Any Lender may furnish any information concerning any Borrower or
any of its Subsidiaries in the possession of such Lender from time to time to
assignees and participants (including prospective assignees and participants)
evaluating the assignment or participation and subject to the prior execution by
such party of the form of confidentiality agreement required by the Company as
of the Closing Date of all Lenders.
(g) In the event that any Lender fails to maintain an Investment Grade
Rating (a "Non-Rated Lender"), such Lender shall be replaced as soon as
practicable by, and assign all its Loans, Applicable Facility Commitments,
Applicable Fronting Commitments, Participations and other Obligations owing
thereto pursuant to Section 13.01 to, a financial institution selected by the
Company and willing to become a Lender for all purposes hereunder which is an
Eligible Assignee. Such Non-Rated Lender agrees to execute and deliver to the
Global Agent and to the Applicable Facility Agent of each Facility in which such
Non-Rated Lender has made or was obligated to make Loans an Assignment and
Acceptance with such replacement Lender upon payment at par by such replacement
lender of all principal, interest, fees and other amounts owing under this
Agreement to such Non-Rated Lender. The Non-Rated Lender shall pay to the
Applicable Facility Agent the processing fee required by Section 13.01(a)(iv) in
connection with such assignment. Upon acceptance of the Assignment and
Acceptance and satisfaction of all other conditions in Section 13.01(a), (b),
(c), such replacement lender shall become a Lender hereunder.
(h) No Borrower may assign any rights, powers, duties or obligations
under this Agreement or the other Loan Documents without the prior written
consent of all the Lenders.
13.02 Notices. Any notice shall be presumed to have been received by
any party hereto and be effective (i) on the day on which delivered (including
hand delivery by commercial courier service) to such party (against receipt
therefor), (ii) on the date of receipt at such address or telefacsimile number
as may from time to time be specified by such party in written notice to the
other parties hereto, or (iii) on the fifth Business Day after the date on which
mailed, if sent prepaid by certified or registered mail, return receipt
requested, in each case delivered, transmitted or mailed, as the case may be, to
the address or telefacsimile number, as appropriate, set forth below or such
other address or number as such party shall specify by notice thereunder:
(a) if to any Borrower:
c/o American Greetings Corporation
Xxx Xxxxxxxx Xxxx
Xxxxxxxxx, Xxxx 00000
Attention: Manager of Treasury Operations
Telefacsimile: (000) 000-0000
Telephone: (000) 000-0000
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with a copy to:
American Greetings Corporation
Xxx Xxxxxxxx Xxxx
Xxxxxxxxx, Xxxx 00000
Attention: General Counsel
Telefacsimile: (000) 000-0000
Telephone: (000) 000-0000
(b) if to the Authorized Representative:
at the address set forth for
receipt of notices in the
notice of appointment thereof.
(c) if to the Global Agent:
NationsBank, N.A.
Independence Center, 00xx Xxxxx
XX0-000-00-00
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000
Attention: Agency Services
Telefacsimile: (000) 000-0000
Telephone: (000) 000-0000
with a copy to:
NationsBank, N.A.
NationsBank Corporate Center
000 Xxxxx Xxxxx Xxxxxx
XX0 000-00-00
Charlotte, North Carolina 28255-0065
Attention: Xx. Xxxxxx X. Xxxxxx
Telefacsimile: (000) 000-0000
Telephone: (000) 000-0000
(d) if to the Agents:
At the addresses set forth on the signature pages
hereof.
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(e) if to the Lenders:
At the addresses set forth on the signature pages
hereof and on the signature page of each Assignment
and Acceptance
13.03 Right of Set-off; Adjustments.
(a) Upon the occurrence and during the continuance of any Event of
Default, each Lender (and each of its affiliates) is hereby authorized at any
time and from time to time, to the fullest extent permitted by law, to set off
and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held and other indebtedness at any time owing by such
Lender (or any of its affiliates) to or for the credit or the account of any
Applicable Borrower against any and all of the Obligations of such Borrower now
or hereafter existing under this Agreement, any other Loan Document and the Note
of such Borrower held by such Lender, irrespective of whether such Lender shall
have made any demand under this Agreement, any other Loan Document or such Notes
and although such Obligations may be unmatured. Each Lender agrees promptly to
notify the Applicable Borrower, the Global Agent and the Applicable Facility
Agent after any such set-off and application made by such Lender; provided,
however, that the failure to give such notice shall not affect the validity of
such set-off and application. The rights of each Lender under this Section
13.03(a) are in addition to other rights and remedies (including, without
limitation, other rights of set-off) that such Lender may have.
(b) Each Lender agrees that if it shall, through the exercise of a
right of banker's lien, set-off, counterclaim or otherwise, obtain payment with
respect to its Obligations (other than pursuant to Article VI) which results in
its receiving more than its pro rata share of the aggregate payments with
respect to all of the Obligations in a specific Facility, or with respect to all
of the Obligations in the Total Facilities, after acceleration thereof pursuant
to Section 11.01(A) (other than any payment expressly provided hereunder to be
distributed on other than a pro rata basis and payments pursuant to Article VI),
then (i) such Lender shall be deemed to have simultaneously purchased from the
other Applicable Lenders or all Lenders, as the case may be, a share in their
Obligations so that the amount of the Obligations held by each of the Applicable
Lenders or all Lenders, as the case may be, shall be pro rata and (ii) such
other adjustments shall be made from time to time as shall be equitable to
ensure that the Lenders share such payments ratably; provided, however, that for
purposes of this Section 13.03(b) the terms "pro rata" and "ratably" shall be
determined with respect to the Applicable Commitment Percentage of each Lender
after subtraction of amounts, if any, by which any such Lender has not funded
its share of the outstanding Loans. If all or any portion of any such excess
payment is thereafter recovered from the Lender which received the same, the
purchase provided in this Section 13.03 (b) shall be rescinded to the extent of
such recovery, without interest. The Borrowers expressly consent to the
foregoing arrangements and agree that each Lender so purchasing a portion of the
other Lenders' Obligations may exercise all rights of payment (including,
without limitation, all rights of set-off, banker's lien or counterclaim) with
respect to such portion as fully as if such Lender were the direct holder of
such portion.
13.04 Survival. All covenants, agreements, representations and
warranties made herein shall survive the making by the Lenders of the Loans and
the execution and delivery to the Lenders of this
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Agreement and the Notes and shall continue in full force and effect so long as
any Obligations remain outstanding or any Lender has any commitment hereunder or
any Borrower has continuing obligations hereunder unless otherwise provided
herein. Whenever in this Agreement any of the parties hereto is referred to,
such reference shall be deemed to include the successors and permitted assigns
of such party and all covenants, provisions and agreements by or on behalf of
the Borrowers which are contained in the Loan Documents shall inure to the
benefit of the successors and permitted assigns of the Lenders or any of them.
13.05 Expenses. Each Borrower jointly and severally agrees to pay on
demand all reasonable costs and expenses of the Global Agent, the Canadian
Facility Agent and the Australian Facility Agent in connection with the
syndication, preparation, execution, delivery, administration, modification, and
amendment of this Agreement, the other Loan Documents, and the other documents
to be delivered hereunder, including, without limitation, the reasonable fees
and expenses of counsel (including the allocated cost of internal counsel) for
the Global Agent and the allocated cost of internal counsel for the Canadian
Facility Agent and the Australian Facility Agent with respect thereto and with
respect to advising the Agents as to their rights and responsibilities under the
Loan Documents. Each Borrower further agrees jointly and severally to pay on
demand all costs and expenses of each Agent and each Lender, if any (including,
without limitation, reasonable attorneys' fees and expenses), in connection with
the enforcement or preservation of rights under this Agreement (whether through
negotiations, legal proceedings, or otherwise), any other Loan Documents and any
other documents to be delivered hereunder. The agreements contained in this
Section shall survive payment in full of the Obligations, termination of each
Commitment and the occurrence of the Total Facility Termination Date.
13.06 Amendments and Waivers. Any provision of this Agreement or any
other Loan Document may be amended or waived if, but only if, such amendment or
waiver is in writing and is signed by the Borrowers and the Required Lenders
with respect to the Total Facilities, and, if Article XII or the rights or
duties of the Global Agent or any Applicable Facility Agent are affected
thereby, by the Global Agent and/or the Applicable Facility Agent, as
applicable; provided that no such amendment or waiver shall, unless signed by
all the Lenders, (i) increase the US Facility Commitment, UK Facility
Commitment, Canadian Facility Commitment or Australian Facility Commitment, or
the US Facility Fronting Commitment, UK Facility Fronting Commitment, Canadian
Facility Fronting Commitment or Australian Facility Fronting Commitment, as
applicable, of any Lender or increase the Total US Facility Commitment, the
Total UK Facility Commitment, the Total Canadian Facility Commitment or the
Total Australian Facility Commitment; (ii) reduce the principal of or rate of
interest on any Loan or any fees or other amounts payable hereunder; (iii)
postpone any date fixed for the payment of any scheduled installment of
principal of or interest on any Loan or any fees or other amounts payable
hereunder or the Total Facility Termination Date, the US Facility Revolving
Credit Termination Date or the Canadian Facility Renewable Tranche Termination
Date; (iv) change the percentage of the Applicable Facility Commitment or the
Total Commitment, as applicable, or of the Aggregate Credit Exposure or the
number of Lenders, which shall be required for the Lenders or any of them to
take any action under this Section or any other provision of this Agreement; or
(v) release or allow an assignment by any Borrower or the Guarantor; provided
further, however, that the amendment or waiver of any of the following
provisions of a specific Facility need only be signed by the Applicable
Borrowers, the Applicable Facility Agent and the Required Lenders with respect
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to such Facility: (x) delivery of Borrowing Notices with respect to any Advance,
Continuation or Conversion under the specific Facility, (y) delivery of notice
for any reduction in the Applicable Total Facility Commitment, and (z) minimum
or integral amounts of Advances or Loans under the specific Facility.
No notice to or demand on any Borrower in any case shall entitle such
Borrower to any other or further notice or demand in similar or other
circumstances, except as otherwise expressly provided herein. No delay or
omission on any Lender's or any Agent's part in exercising any right, remedy or
option shall operate as a waiver of such or any other right, remedy or option or
of any Default or Event of Default. The rights and remedies herein provided are
cumulative and not exclusive of any rights or remedies provided by law.
13.07 Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be deemed an
original, and it shall not be necessary in making proof of this Agreement to
produce or account for more than one such fully-executed counterpart.
13.08 Termination. The termination of this Agreement shall not affect
any rights of the Borrowers, the Lenders or the Agents or any obligation of any
Borrower, the Lenders or any of the Agents, arising prior to the effective date
of such termination, and the provisions hereof shall continue to be fully
operative until all transactions entered into or rights created or obligations
incurred prior to such termination have been fully disposed of, concluded or
liquidated and the Obligations arising prior to or after such termination have
been irrevocably paid in full. The rights granted to the Agents for the benefit
of the Lenders hereunder and under the other Loan Documents shall continue in
full force and effect, notwithstanding the termination of this Agreement, until
termination of each Commitment and all of the Obligations have been paid in full
after the termination hereof (other than Obligations in the nature of continuing
indemnities or expense reimbursement obligations not yet due and payable, which
shall continue) or the Borrowers have furnished the Lenders and the Agents with
an indemnification satisfactory to the Agents and each Lender with respect
thereto. All representations, warranties, covenants, waivers and agreements
contained herein shall survive termination hereof until payment in full of the
Obligations unless otherwise provided herein. Notwithstanding the foregoing, if
after receipt of any payment of all or any part of the Obligations, any Lender
is for any reason compelled to surrender such payment to any Person because such
payment is determined to be void or voidable as a preference, impermissible
setoff, a diversion of trust funds or for any other reason, this Agreement shall
continue in full force and the Borrowers shall be liable to, and shall indemnify
and hold the Agents and such Lender harmless for, the amount of such payment
surrendered until the Agents and such Lender shall have been finally and
irrevocably paid in full. The provisions of the foregoing sentence shall be and
remain effective notwithstanding any contrary action which may have been taken
by the Lenders in reliance upon such payment, and any such contrary action so
taken shall be without prejudice to the Lenders' rights under this Agreement and
shall be deemed to have been conditioned upon such payment having become final
and irrevocable.
13.09 Usury Savings Clause. Notwithstanding any other provision herein,
the aggregate interest rate charged with respect to any of the Obligations,
including all charges or fees in connection
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therewith deemed in the nature of interest under applicable law shall not exceed
the Highest Lawful Rate (as such term is defined below). If the rate of interest
(determined without regard to the preceding sentence) under this Agreement at
any time exceeds the Highest Lawful Rate; the outstanding amount of the Loans
made hereunder shall bear interest at the Highest Lawful Rate until the total
amount of interest due hereunder equals the amount of interest which would have
been due hereunder if the stated rates of interest set forth in this Agreement
had at all times been in effect. In addition, if when the Loans made hereunder
are repaid in full the total interest due hereunder (taking into account the
increase provided for above) is less than the total amount of interest which
would have been due hereunder if the stated rates of interest set forth in this
Agreement had at all times been in effect, then to the extent permitted by law,
the Applicable Borrowers shall pay to the Applicable Facility Agent an amount
equal to the difference between the amount of interest paid and the amount of
interest which would have been paid if the Highest Lawful Rate had at all times
been in effect. Notwithstanding the foregoing, it is the intention of the
Lenders and the Borrowers to confirm strictly to any applicable usury laws.
Accordingly, if any Lender contracts for, charges, or received any consideration
which constitutes interest in excess of the Highest Lawful Rate, then any such
excess shall be cancelled automatically and, if previously paid, shall at such
Lender's option be applied to the outstanding amount of the Loans made hereunder
or be refunded to the Applicable Borrowers. As used in this paragraph, the term
"Highest Lawful Rate" means the maximum lawful interest rate, if any, that at
any time or from time to time may be contracted for, charged, or received under
the laws applicable to such Lender which are presently in effect or, to the
extent allowed by law, under such applicable laws which may hereafter be in
effect and which allow a higher maximum nonusurious interest rate than
applicable laws now allow.
13.10 Indemnification; Limitation of Liability.
(a) The Company and each Borrower jointly and severally agrees to
indemnify absolutely and unconditionally and hold harmless each Agent and each
Lender and each of their affiliates and their respective officers, directors,
employees, agents, and advisors (each, an "Indemnified Party") from and against
any and all claims, damages, losses, liabilities, costs, and expenses,
including, without limitation, all claims, damages, losses, liabilities, costs
and expenses described in Section 6.09 (the foregoing also to include, without
limitation, reasonable attorneys' fees, settlement costs and disbursements)
("Indemnified Liabilities") that may be incurred by or asserted or awarded
against any Indemnified Party, in each case arising out of or in connection with
or by reason of (including, without limitation, in connection with any
investigation, litigation, or proceeding or preparation of defense in connection
therewith) the Loan Documents, any of the transactions contemplated herein or
the actual or proposed use of the proceeds of the Loans, except to the extent
such Indemnified Liability is found in a final, non-appealable judgment by a
court of competent jurisdiction to have resulted from such Indemnified Party's
gross negligence or willful misconduct. If and to the extent the foregoing may
be unenforceable for any reason, the Company and each Borrower hereby agrees to
make the maximum contribution to the payment and satisfaction of each
Indemnified Liability which is permissible under applicable law. In the case of
an investigation, litigation or other proceeding to which the indemnity in this
Section 13.10 applies, such indemnity shall be effective whether or not such
investigation, litigation or proceeding is brought by the Company, any Borrower,
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its directors, shareholders or creditors or an Indemnified Party or any other
Person or any Indemnified Party is otherwise a party thereto and whether or not
the transactions contemplated hereby are consummated.
(b) Without limiting the generality of Section 13.10(a) above, the
Company and the Borrowers hereby jointly and severally agree to defend,
indemnify and hold each Indemnified Party harmless from and against any and all
Indemnified Liabilities (including, without limitation, assessment and cleanup
costs and reasonable attorneys', consultants' and other experts' fees and
disbursements, including those arising by reason of any of the aforesaid or an
action against the Company or any Subsidiary under this indemnity) arising
directly or indirectly from, out of or by reason of (a) the violation or alleged
violation of any Environmental Law by the Company or any Subsidiary or with
respect to any property owned, operated or leased by the Company or any
Subsidiary or (b) the use, generation, handling, storage, transportation,
treatment, emission, release, disclaim or disposal of any Hazardous Material by
or in respect of the Company or any Subsidiary or on or with respect to property
owned or leased or operated by the Company or any Subsidiary.
(c) The Company and each Borrower agrees that no Indemnified Party
shall have any liability (whether direct or indirect, in contract or tort or
otherwise) to it, any of its Subsidiaries or Affiliates or any security holders
or creditors thereof arising out of, related to or in connection with the
transactions contemplated herein, except to the extent that such liability is
found in a final non-appealable judgment by a court of competent jurisdiction to
have resulted from such Indemnified Party's gross negligence or willful
misconduct; provided, however, the Company and each Borrower agrees not to
assert any claim against any of the Agents, any Lender, any of their affiliates,
or any of their respective directors, officers, employees, attorneys, agents,
and advisers, on any theory of liability, for special, indirect, consequential,
or punitive damages arising out of or otherwise relating to the Loan Documents,
any of the transactions contemplated herein or the actual or proposed use of the
proceeds of the Loans.
(d) Without prejudice to the survival of any other agreement of any
Borrower hereunder, the agreements and obligations of the Company and each
Borrower contained in this Section 13.10 shall survive the payment in full of
the Obligations, termination of each Commitment and the occurrence of the Total
Facility Termination Date.
13.11 Agreement Controls. In the event that any term of any of the Loan
Documents other than this Agreement conflicts with any express term of this
Agreement, the terms and provisions of this Agreement shall control to the
extent of such conflict.
13.12 Severability. If any provision of this Agreement or the other
Loan Documents shall be determined to be illegal or invalid as to one or more
parties hereto, then such provision shall remain in effect with respect to all
parties, if any, as to whom such provision is neither illegal nor invalid, and
in any event all other provisions hereof shall remain effective and binding on
the parties hereto.
13.13 Entire Agreement. This Agreement, together with the other Loan
Documents, constitutes the entire agreement among the parties with respect to
the subject matter hereof and
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supersedes all previous proposal, negotiations, representations and other
communications between or among the parties, both oral and written, with respect
thereto.
13.14 Governing Law; Waiver of Jury Trial.
(a) THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (OTHER THAN
THOSE LOAN DOCUMENTS WHICH EXPRESSLY PROVIDE THAT THEY SHALL BE
GOVERNED BY THE LAWS OF ANOTHER JURISDICTION) SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH
STATE.
(b) EACH BORROWER HEREBY EXPRESSLY AND IRREVOCABLY AGREES AND
CONSENTS THAT ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREIN MAY BE
INSTITUTED IN ANY STATE OR FEDERAL COURT SITTING IN THE XXXXXX XX XXX
XXXX, XXXXX XX XXX XXXX, XXXXXX XXXXXX OF AMERICA AND, BY THE EXECUTION
AND DELIVERY OF THIS AGREEMENT, EACH BORROWER EXPRESSLY WAIVES ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE IN,
OR TO THE EXERCISE OF JURISDICTION OVER IT AND ITS PROPERTY BY, ANY
SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING, AND EACH BORROWER
HEREBY IRREVOCABLY SUBMITS GENERALLY AND UNCONDITIONALLY TO THE
JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING.
(c) EACH BORROWER AGREES THAT SERVICE OF PROCESS MAY BE MADE
BY PERSONAL SERVICE OF A COPY OF THE SUMMONS AND COMPLAINT OR OTHER
LEGAL PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING, OR BY REGISTERED
OR CERTIFIED MAIL (POSTAGE PREPAID) TO THE ADDRESS OF SUCH BORROWER
PROVIDED IN SECTION 13.02, OR BY ANY OTHER METHOD OF SERVICE PROVIDED
FOR UNDER THE APPLICABLE LAWS IN EFFECT IN THE STATE OF NEW YORK.
(d) NOTHING CONTAINED IN SUBSECTION (a) OR (b) HEREOF SHALL
PRECLUDE ANY AGENT OR ANY LENDER FROM BRINGING ANY SUIT, ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT IN THE
COURTS OF ANY JURISDICTION WHERE ANY BORROWER OR ANY BORROWER'S
PROPERTY OR ASSETS MAY BE FOUND OR LOCATED. TO THE EXTENT PERMITTED BY
THE APPLICABLE LAWS OF ANY SUCH JURISDICTION, EACH BORROWER HEREBY
IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT AND EXPRESSLY
WAIVES, IN RESPECT OF ANY SUCH SUIT, ACTION OR PROCEEDING,
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OBJECTION TO THE EXERCISE OF JURISDICTION OVER IT AND ITS PROPERTY BY
ANY SUCH OTHER COURT OR COURTS WHICH NOW OR HEREAFTER MAY BE AVAILABLE
UNDER APPLICABLE LAW.
(e) IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY
RIGHTS OR REMEDIES UNDER OR RELATED TO ANY LOAN DOCUMENT OR ANY
AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR THAT MAY IN
THE FUTURE BE DELIVERED IN CONNECTION WITH THE FOREGOING, EACH
BORROWER, EACH AGENT AND THE LENDERS HEREBY AGREE, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, THAT ANY SUCH ACTION OR PROCEEDING SHALL
BE TRIED BEFORE A COURT AND NOT BEFORE A JURY AND HEREBY IRREVOCABLY
WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH PERSON
MAY HAVE TO TRIAL BY JURY IN ANY SUCH ACTION OR PROCEEDING.
[Signature pages follow.]
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IN WITNESS WHEREOF, the parties hereto have caused this instrument to
be made, executed and delivered by their duly authorized officers as of the day
and year first above written.
AMERICAN GREETINGS CORPORATION
By: /s/ XXXXXXX X. XXXXX
---------------------------------------------
Name: Xxxxxxx X. Xxxxx
-------------------------------------------
Title: Vice President and Chief Financial Officer
------------------------------------------
CARLTON CARDS (FRANCE) S.N.C.
By: /s/ X. X. XXXXX
---------------------------------------------
Name: Xxxxxx X. Xxxxx
-------------------------------------------
Title: Gerant
-------------------------------------------
CARLTON CARDS LIMITED, a UK entity
By: /s/ X. X. XXXXX
---------------------------------------------
Name: Xxxxxx X. Xxxxx
-------------------------------------------
Title: Finance Director
------------------------------------------
UK GREETINGS LIMITED
By: /s/ XXXX XXX XXXXXXXX XXXXX
---------------------------------------------
Name: Xxxx Xxx Xxxxxxxx Xxxxx
-------------------------------------------
Title: Director
------------------------------------------
XXXXXX WHITE GROUP LIMITED
By: /s/ XXXX XXX XXXXXXXX XXXXX
---------------------------------------------
Name: Xxxx Xxx Xxxxxxxx Xxxxx
-------------------------------------------
Title: Director
------------------------------------------
Signature Page 1 of 19
135
CAMDEN GRAPHICS LIMITED
By: /s/ S. T. BANKS
-----------------------------------
Name: Xxxxx X. Xxxxx
---------------------------------
Title: Secretary and Finance Director
---------------------------------
CARLTON CARDS LIMITED, a Canadian Company
By: /s/ XXXXXXX XXXXX
-----------------------------------
Name: Xxxxxxx Xxxxx
---------------------------------
Title: Secretary
---------------------------------
XXXX XXXXX (AUSTRALIA) LTD.
By: /s/ XXXX XXX XXXXXXXX XXXXX
-----------------------------------
Name: Xxxx Xxx Xxxxxxxx Xxxxx
---------------------------------
Title: Director and President
---------------------------------
XXXX XXXXX (N.Z.) LTD.
By: /s/ XXXX XXX XXXXXXXX XXXXX
-----------------------------------
Name: Mary Ann Corrigan Davis
---------------------------------
Title: Director and President
--------------------------------
JOHN SANDS HOLDING CORP.
By: /s/ MARY ANN CORRIGAN DAVIS
-----------------------------------
Name: Mary Ann Corrigan Davis
---------------------------------
Title: Director and President
---------------------------------
Signature Page 2 of 19
136
NATIONSBANK, NATIONAL ASSOCIATION,
as Global Agent and as US Facility Lender
By: /s/ PHILIP DURAND
-----------------------------------
Name: Philip Durand
---------------------------------
Title: Vice President
---------------------------------
Lending Office:
NationsBank, National Association
Independence Center
NC1-001-15-05, 15th Floor
Charlotte, North Carolina 28255
Attention: Corporate Credit Services
Telephone: (704) 386-8382
Telefacsimile: (704) 386-8694
Wire Transfer Instructions:
NationsBank, National Association
Charlotte, North Carolina 28255
ABA No.: 053000196
Reference: American Greetings Corporation
Account No.: 13662122506
Attention: Corporate Credit Support
Address for Other Notices:
NationsBank, National Association
NationsBank Corporate Center
100 North Tryon Street
NC1-007-08-09
Charlotte, North Carolina 28255-0065
Attention: Mr. Philip S. Durand
Telephone: (704) 386-4955
Telefacsimile: (704) 388-0960
Signature Page 3 of 19
137
NATIONSBANK, NATIONAL ASSOCIATION,
as UK Facility Agent and as UK Facility Lender
By: /s/ PHILIP S. DURAND
-----------------------------------
Name: Philip S. Durand
---------------------------------
Title: Vice President
---------------------------------
Lending Office:
Melanie Harries
Loan Administration Department
NationsBank N.A.
New Broad Street House
35 New Broad Street
London EC2M 1NH
Tel: 0171 282 6833
Fax: 0171 282 6831
Telex: 883181 NCNB G
Wire Transfer Instructions:
With respect to British Pounds Sterling:
direct by CHAPS to:
NationsBank, N.A., London
Sort Code: 40 51 15
a/c no: 00497056
Swift Address: NABKGB2X
With respect to French Francs:
Societe Generale
29 Boulevard Haussman, 75009 Paris
Swift Address: SOGEFRPP
For account: NationsBank N.A., London
Swift Address: NABKGB2X
a/c: 001 011 042 150
Address for Other Notices:
NationsBank, National Association
NationsBank Corporate Center
100 North Tryon Street
NC1-007-08-09
Charlotte, North Carolina 28255-0065
Attention: Mr. Philip S. Durand
Telephone: (704) 386-4955
Telefacsimile: (704) 388-0960
Signature Page 4 of 19
138
NATIONAL CITY BANK,
as US Facility Agent and as Lender
By: /s/ ROBERT E. LITTLE
-----------------------------------
Name: Robert E. Little
Title: Vice President and Senior Lending Officer
Lending Office:
National City Bank
1900 E. Ninth Street, Loc #2077
Cleveland, Ohio 44114
Attention: Connie B. Djukic, Money Desk Area
Telephone: (216) 575-2578
Telefacsimile: (216) 575-2481
Wire Transfer Instructions for US Facility Agent:
National City Bank
Cleveland, Ohio
ABA No.: 041000124
Account No.: 151804
Beneficiary: Commercial Loan Operations,
Special Processing
Reference: American Greetings
Wire Transfer Instructions for UK Facility Agent:
GBP: Lloyds Bank PLC
Intl Banking Division
PO Box 19
London SEI 2HA
England, UK
Swift code: LOYDGB2L
Sort: 30-96-34
For Acct of: National City Bank, Cleveland
/01080203
FRF: Credit Lyonnais
International Division
19 Boulevard Des Italiens
Paris, France 75022
Swift code: CRLYFRPP
For Acct of: National City Bank, Cleveland
/091000081522
Signature Page 5 of 19
139
Address for Other Notices:
For US Facility:
National City Bank
1900 E. Ninth Street, Loc #2104
Cleveland, Ohio 44114
Attention: Wendy Pollerine
Telephone: (216) 575-2560
Telefacsimile: (216) 575-2481
For UK Facility:
Fred Lingenfelder
Telephone: (216) 575-2900
Telefacsimile: (216) 575-2411
Signature Page 6 of 19
140
BANK OF AMERICA CANADA,
as Canadian Facility Agent and as Canadian
Facility Lender
By: /s/ RICHARD J. HALL
-----------------------------------
Name: Richard J. Hall
---------------------------------
Title: Vice President
---------------------------------
Lending Office:
Bank of America Canada
Toronto Corporate Services Office 5651
200 Front Street West, 27th Floor
Toronto, Ontario M5V 312
Canada
Attention: Nelson Lam/Richard J. Hall
Telephone: 416.349.5496/416.348.4008
Telefacsimile: 416.349.4282/416.349.4283
Wire Transfer Instructions:
Wire payment of funds DIRECT through IIPS to:
Bank of America Canada
200 Front Street West, Toronto, Ontario
TRANSIT #: 241
SWIFT CODE: BOFACATT
Reference: Carlton Cards
Attention: Agency Administration
Signature Page 7 of 19
141
BANK OF AMERICA, NATIONAL TRUST &
SAVINGS ASSOCIATION, as U.S. Facility Lender
By: /s/ PAUL HIGDON
-----------------------------------
Name: Paul Higdon
Title: Managing Director
Lending Office:
Bank of America National Trust & Savings
Association
Attention: Michael Gates
231 South LaSalle
Chicago, Illinois 60697
Telephone: (312) 828-6207
Telefacsimile: (312) 974-9626
Wire Transfer Instructions:
Bank of America National Trust & Savings
Association
B of A International
ABA No.: 071000039
Reference: American Greetings
Account No.: 4703421
Address for Other Notices:
Bank of America National Trust & Savings
Association
Attention: Michael Gates
231 South LaSalle
Chicago, Illinois 60697
Telephone: (312) 828-6207
Telefacsimile: (312) 974-9626
Signature Page 8 of 19
142
BANK OF AMERICA, NATIONAL TRUST and
SAVINGS ASSOCIATION,
as Australian Facility Agent
By: /s/ GARY FLIEGER
--------------------------------
Name: Gary Flieger
Title: Vice President
Address for borrowings, payments,
conversions, continuations, fees and
interest and other operational
matters relating thereto:
Bank of America NT & SA c/o BA Asia Ltd.
Devon House
979 King's Road, 10th Floor
Quarry Bay, Hong Kong
Attention: Donny Lam
Telephone: 852.2597.3428
Telefacsimile: 852.2597.3424 or 3425
Address for all other matters
including voting, waivers,
amendments, consents, financial
statements, reporting requirements
or requests, fronting assignments
and other administrative/executive
matters of a similar nature relating
thereto:
Bank of America NT & SA
1455 Market Street, 15th Floor
San Francisco, CA 94103
Attention: Mr. Gary Flieger
Telephone: (415) 436-3484
Telefacsimile: (415) 436-3425
E-mail: gary.flieger@bankamerica.com
Wire Transfer Instructions:
Payments in Australian Dollars
Bank of America NT & SA,
Sydney Branch for the account of BA
Asia Limited Account No. 97202-012
Payments in New Zealand Dollars
Bank of New Zealand - Wellington
for the account of BA Asia Limited
Account No. 260721-0000
Signature Page 9 of 19
143
BA AUSTRALIA LIMITED
By: /s/ WARREN WHITLEY /s/ TONY DOWLING
----------------------------------------------
Name: Warren R. Whitley Tony Dowling
--------------------------------------------
Title: Company Secretary Vice President
and General
Manager Operations
---------------------------------------------------
BA Australia Ltd
Lending Office:
BA Australia Limited
Level 63, MLC Centre
19-29 Martin Place
Sydney, New South Wales 2000
Australia
Attention: Evelyn Kirk
Telephone: 612.9931.4237
Telefacsimile: 612.9221.1023
Wire Transfer Instructions:
Payments in Australian Dollars
Bank of America NT & SA, Sydney branch
Account No.: 11191019
BSB No.: 232001
Deposits to be made through: any National
Australia Bank Branch for further credit to Bank
of America, NT & SA, Sydney
Payments in New Zealand Dollars
Account Name: Bank of America NT&SA, Sydney branch
Bank: Bank of New Zealand, Wellington
Account No.: 5201-30600
Signature Page 10 of 19
144
NBD BANK
as US Facility Lender
By: /s/ GLENN CURRIN
-----------------------------------
Name: Glenn A. Currin
Title: Vice President
Lending Office:
NBD Bank
611 Woodward Avenue
Detroit, Michigan 48226
Attention: Glenn Currin
Vice President
Telephone: (313) 225-2637
Telefacsimile: (313) 225-1671
Wire Transfer Instructions:
NBD Bank, Detroit
ABA No.: 072000326
Reference: American Greetings
Account No.: Commercial Loans; Acct. #212115
Address for Other Administrative Notices (Including
Funding and Wires):
NBD Bank
Loan Service Associate
611 Woodward Avenue
Detroit, Michigan 48226
Attention: Karen Graham
Telephone: (313) 225-2579
Telefacsimile: (313) 225-1586
Signature Page 11 of 19
145
FIRST CHICAGO NBD BANK, CANADA,
as Canadian Facility Lender
By: /s/ GLENN CURRIN
-----------------------------------
Name: Glenn A. Currin
Title: Vice President
Lending Office:
First Chicago NBD Bank, Canada
BCE Place, P.O. Box 613
161 Bay Street, Suite 4240
Toronto, Ontario M5J 2S1
Attention: Michael Tam
Telephone: 416-365-5261
Telefacsimile: 416-363-7574
Wire Transfer Instructions:
Royal Bank of Canada, Toronto
Transit Routing #07172-003
For Credit To: First Chicago NBD Bank, Canada
Account # 000-047-1
For further credit to: Carlton Cards
Address for Other Administrative Notices:
NBD Bank
161 Bay Street, Suite 4240
Toronto, Ontario, Canada M5J2S1
Attention: Lehong Zhang
Telephone: (416) 365-8262
Telefacsimile: (416) 363-7574
Signature Page 12 of 19
146
THE FIRST NATIONAL BANK OF CHICAGO,
as Australian Facility Lender
By: /s/ GLENN CURRIN
-----------------------------------
Name: Glenn A. Currin
Title: Vice President
Lending Office:
The First National Bank of Chicago
Level 19, 90 Collins Street
Melbourne Victoria 3000 Australia
Attention: Simon Milne
Telephone: 61 3 9650 1388
Telefacsimile: 61 3 9650 2721
Wire Transfer Instructions:
First Chicago, International NYC
ABA No.: 026009797
Reference: For Credit to First Chicago in Australia,
Adelaide
Account No.: 404-1008 USN50 01
For further credit to: John Sands
Address for Other Administrative Notices:
Level 4, 70 Hindmarsh Square
Adelaide S.A.
5000 Australia
Attention: Josh Whitting
Telephone: 61 8 8228 2222
Telefacsimile: 61 8 8228 2948
Signature Page 13 of 19
147
KEYBANK, NATIONAL ASSOCIATION
By: /s/ RICHARD A. POHLE
-----------------------------------
Name: Richard A. Pohle
Title: Senior Vice President
Lending Office:
KeyBank National Association
127 Public Square
Cleveland, OH 44114
Attention: Mark LoSchiavo
Telephone: 216-689-0598
Telefacsimile: 216-689-4981
Wire Transfer Instructions:
US$ KeyBank National Association
ABA #041001039
ATTN: Commercial Loan Operations
RE: American Greetings Corporation
GBP: Royal Bank of Scotland
Correspondent Banking Branch
P.O. Box 450
5-10 Great Tower Street
London ec3P 3HX England
Sort Code 160034
Account No.: 12291629
Swift Address: RBOSGB2L
Account Name: KEYBANK NATIONAL
ASSOCIATION, CLEVELAND. OH
FF: Banque Nationale De Paris S.A.
Boulevard Des Italiens 16
76450 Paris Cedex 09 France
Centre D'Operations Avec L'Etranger
Bank Code: 30004 Branch Code: 00897
Account No.: 040033610
Swift Address: BNPAFRPP
Account Name: KEYBANK NATIONAL
ASSOCIATION, CLEVELAND, OH
Signature Page 14 of 19
148
ROYAL BANK OF CANADA
By: /s/ MOLLY DRENNAN
-----------------------------------
Name: Molly Drennan
Title: Senior Manager
As US Facility Lender:
Lending Office:
Royal Bank of Canada
One Liberty Plaza
New York, NY 10006-1404
Attention: Danielle Gilles
Telephone: (212) 428-6332
Telefacsimile: (212) 428-2372
Wire Transfer Instructions:
Royal Bank of Canada via Chase Manhattan Bank
New York, NY
ABA No.: 0210-0002-1
Reference: Loan/Interest/Fee Payment for
American Greetings
Account No.: 920-1-033363
As Australian Facility Lender:
Lending Office:
Royal Bank of Canada
167 Mac Quarie Street
Sydney NWS 2000
AUSTRALIA
Attention: Manager Loans Administration
Telephone: 612/9233 5500
Telefacsimile: 612/9221 2261
Wire Transfer Instructions:
Royal Bank of Canada
Sydney
ABA No.: BSB-935-001
Reference: Swift - ROYCAU2S
Account No.: Royal Bank of Canada
Signature Page 15 of 19
149
Address for Other Notices:
Royal Bank of Canada
167 Mac Quarie Street
Sydney NSW 2000
AUSTRALIA
Attention: Head of Corporate Banking
Telephone: 612/9233 5500
Telefacsimile: 612/9221 2261
As Canadian Facility Lender:
Lending Office:
Royal Bank of Canada
180 Wellington St. W.
Toronto, Ontario
Attention: Adam Ahmed
Telephone: (416) 974-5302
Telefacsimile: (416) 974-8119
Wire Transfer Instruction:
Royal Bank of Canada
ABA No.: N/A
Reference: EMCO
Account No.: 0002-102-683-0
Signature Page 16 of 19
150
MELLON BANK, N.A.,
as US Facility Lender
By: /s/ MARK F. JOHNSTON
-----------------------------------
Name: Mark F. Johnston
Title: A. Vice President
Lending Office:
One Mellon Bank Center
Suite 4525
Pittsburgh, PA 15258
Attention: Mark F. Johnston
Telephone: (412) 236-2793
Telefacsimile: (412) 236-1914
Wire Transfer Instructions:
Mellon Bank, N.A.
Pittsburgh, PA 15259
ABA No.: 043-000-261
Reference: American Greetings
Account No.: 990-873-800
Address for Other Notices:
Mellon Bank, N.A.
Three Mellon Bank Center
Pittsburgh, PA 15259
Attention: Jodi Stewart
Telephone: (412) 236-4817
Telefacsimile: (412) 209-6129
Signature Page 17 of 19
151
MELLON BANK CANADA,
as Canadian Facility Lender
By: /s/ ED Mc GRATH
-----------------------------------
Name: Ed McGrath
Title: Vice President
Lending Office:
Mellon Bank Canada
77 King Street West, Suite 3200
Toronto, Ontario M5K 1K2
Attention: Lisa Daley
Telephone: (416) 860-2436
Telefacsimile: (416) 860-2439
Wire Transfer Instructions:
Canadian Imperial Bank of Commerce
ABA No.: CIBCCATT
Reference: Carlton Cards Retail
Account No.: 65-03810
For Credit: Mellon Bank Canada, Toronto
(MELNCATT)
Address for Other Notices:
N/A
Signature Page 18 of 19
152
PNC BANK, N.A.
By: /s/ MARC T. KENNEDY
-----------------------------------
Name: Marc T. Kennedy
Title: Vice President
For US Facility:
Lending Office:
249 Fifth Avenue
One PNC Plaza - 2nd Floor
Pittsburgh, PA 15222-2707
Attention: Marc T. Kennedy
Telephone: (412) 768-4323
Telefacsimile: (412) 762-6484
Wire Transfer Instructions:
PNC Bank, N.A.
Commercial Loan Operations
ABA No.: 043-000-096
Reference: American Greetings
Account No.: 196-030-890
Address for Other Notices for Operational
Matters (Wires, Payments and Draw Requests):
PNC Bank, N.A.
620 Liberty Avenue
Two PNC Plaza - 3rd Floor
Pittsburgh, PA 15222-2707
Attention: Sally Hunter
Telephone: (412) 768-3807
Telefacsimile: (412) 768-4586
For UK Facility:
Lending Office:
PNC Bank, N.A.
UK Facility Administrative Contact: Anyone in
FX Department
Telephone: 412-762-4951
Telefacsimile: 412-762-4307
Wire Transfer Instructions:
For British Pound Sterling:
Royal Bank of Scotland, PLC
Swift address: RBOSGB2L
City: London N1 8XL
Country: England
Acct No.: 122-522-16 PNC Bank
For French Francs:
Societe Generale
Swift address: SOGEFRPP
City: 75009 Paris
Country: France
Acct No.: 001014438780
Signature Page 19 of 19
153
EXHIBIT LIST
EXHIBIT A Lenders' Commitments and Applicable Commitment Percentages
EXHIBIT B Form of Assignment and Acceptance
EXHIBIT C Notice of Appointment (or Revocation) of Authorized Representative
EXHIBIT D-1 Borrowing Notice (U.S. Facility Loans)
EXHIBIT D-2 Borrowing Notice (UK Facility Loans)
EXHIBIT D-3 Borrowing Notice (Canadian Facility Loans)
EXHIBIT D-4 Borrowing Notice (Australian Facility Loans)
EXHIBIT E Form of Guaranty Agreement
EXHIBIT F Form of U.S. Facility Note
EXHIBIT G Form of Opinion of Counsel for Borrowers and Guarantor
EXHIBIT H Form of compliance Certificate
SCHEDULE 1.01 Authorized Representatives
SCHEDULE 8.02(a) Subsidiaries and Stockholders
SCHEDULE 8.02(f) Litigation
SCHEDULE 10.03 Existing Liens
SCHEDULE 10.06 Transactions with Affiliates
