EXHIBIT 10.3
EXECUTION COPY
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$20,000,000
CREDIT AGREEMENT
Dated as of October 8, 2002,
among
METROCALL HOLDINGS, INC.,
(f/k/a Metrocall, Inc.)
as the Borrower,
and
CERTAIN FINANCIAL INSTITUTIONS,
as the Lenders,
and
TORONTO DOMINION (TEXAS), INC.
as Agent for the Lenders
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CREDIT AGREEMENT
THIS CREDIT AGREEMENT, dated as of October 8, 2002, is among METROCALL
HOLDINGS, INC., a Delaware corporation (the "Borrower"), the various financial
institutions as are or may become parties hereto (collectively, the "Lenders"),
and TORONTO DOMINION (TEXAS), INC. ("TD"), as administrative agent (the "Agent")
for the Lenders.
W I T N E S S E T H:
WHEREAS, the Borrower, through its subsidiaries, is engaged in the
business of owning, constructing, managing and operating paging service systems
and communications businesses incidental or directly relating thereto, including
the resale of narrowband and broadband one- and two-way communications systems;
WHEREAS, on June 3, 2002, the Borrower, Metrocall, Inc. (f/k/a XxXxx RCC
Communications, "OPCO"), Metrocall, USA, Inc. ("MUSA"), Advanced Nationwide
Messaging Corp., MSI, Inc., and Mobilefone Service, L.P. (collectively, the
"Metrocall Entities"), being certain of the Borrower's subsidiaries, together
voluntarily commenced a case under Chapter 11 of the U.S. Bankruptcy Code (as
consolidated for administrative purposes) pursuant to order of the U.S.
Bankruptcy Court for the District of Delaware (the "Bankruptcy Court," and such
Chapter 11 case, the "Bankruptcy Case");
WHEREAS, on September 26, 2002, the Bankruptcy Court entered that certain
"Finding of Fact, Conclusions of Law and Order Confirming the Debtors' Chapter
11 Plan of Reorganization (the "Confirmation Order") confirming that certain
Debtors' Second Amended Joint Plan of Reorganization under Chapter 11 of the
Bankruptcy Code, dated as of July 18, 2002 (as further amended, the "Plan of
Reorganization");
WHEREAS, as of the commencement of the Bankruptcy Case, the Borrower was a
party to that certain Fifth Amended and Restated Credit Agreement dated March
17, 2000, as amended, by and among the Lenders party thereto, The
Toronto-Dominion Bank, as Issuing Bank, Toronto Dominion (Texas), Inc., as
Administrative Agent, Bank of America, N.A. and First Union National Bank, as
Co-Documentation Agents and FleetBoston Xxxxxxxxx Xxxxxxxx Inc. as Syndication
Agent (the "Prior Loan Agreement"), under the terms of which such lenders agreed
to make loans to the Borrower in an aggregate amount of up to $200,000,000;
WHEREAS, as of October 6, 2002, the aggregate outstanding principal amount
of the loans was $133,000,000, plus accrued interest;
WHEREAS, pursuant to the terms of the Plan of Reorganization, allowed
claims of the bank parties to the Prior Loan Agreement (the "Allowed Bank Group
Claims") are to be satisfied on the effective date of the Plan of
Reorganization, by among other things, new senior secured promissory notes from
the OPCO payable to the Lenders in an aggregate principal amount of $60,000,000,
such that the Lenders will share in a pro rata distribution of the Notes in
accordance with each Lender's Commitment (as defined in the Prior Loan
Agreement) under the Prior Loan Agreement;
WHEREAS, the Borrower wishes to restructure, convert and continue
$20,000,000 of Loans (as defined in the Prior Loan Agreement) under the Prior
Loan Agreement into loans hereunder; and
WHEREAS, the Lenders are willing, on the terms and subject to the
conditions hereinafter set forth (including Article V), to enter into this
Agreement.
NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, the parties hereto hereby agree as follows:
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.1. Defined Terms. The following terms (whether or not
underscored) when used in this Agreement, including its preamble and recitals,
shall have the following meanings, except where the context otherwise requires
(such meanings to be equally applicable to the singular and plural forms
thereof):
"Affiliate" of any Person means any other Person that, directly or
indirectly, controls, is controlled by or is under common control with such
Person (excluding any trustee under, or any committee with responsibility for
administering, any Plan). A Person shall be deemed to be "controlled by" any
other Person if such other Person possesses, directly or indirectly, the power
(a) to vote 10% or more of the securities (on a fully diluted basis) having
ordinary voting power for the election of directors or managing general
partners; or (b) to direct or cause the direction of the management and policies
of such Person whether by contract or otherwise.
"Agent" is defined in the Preamble and includes each other Person as shall
have subsequently been appointed as the successor Agent pursuant to Section 9.3.
"Agreement" means, on any date, this Credit Agreement, together with all
exhibits and schedules hereto, as originally in effect on the Effective Date and
as thereafter from time to time amended, supplemented, amended and restated, or
otherwise modified and in effect on such date.
"Allowed Bank Group Claims" is defined in the Sixth Recital.
"Annualized Operating Cash Flow" means, as of any date, the product of (a)
Operating Cash Flow, calculated for the Fiscal Quarter then most recently ended,
multiplied by (b) four (4).
"Applicable Law" means, with respect to any Person, all provisions of
constitutions, statutes, rules, regulations and orders of governmental bodies or
regulatory agencies applicable to such Person, including, without limiting the
foregoing, the Licenses, the Communications Act and all Environmental Laws, and
all orders, decisions, judgments and decrees of all courts and arbitrators in
proceedings or actions to which the Person in question is a party or by which it
is bound.
"Assignee Lender" is defined in Section 10.12.1.
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"Authorized Officer" means, relative to each Obligor, those of its
officers whose signatures and incumbency shall have been certified to the Agent
and the Lenders pursuant to Section 5.2(b).
"Bankruptcy Case" is defined in the Second Recital.
"Bankruptcy Court" is defined in the Second Recital.
"Borrower" is defined in the Preamble, and includes its successors.
"Borrower Security Agreement" means the Security Agreement, dated as of
even date herewith, executed by the Borrower, substantially in the form of
Exhibit F-1 attached hereto, together with any amendments, renewals,
restatements or other modifications thereof from time to time.
"Business Day" means any day that is neither a Saturday or Sunday nor a
legal holiday on which banks are authorized or required to be closed in New
York, New York and Houston, Texas, as relevant to the determination to be made
or the action to be taken.
"Capital Expenditures" means, for any period, the sum of (a) the aggregate
amount of all expenditures of the Borrower and its Subsidiaries for fixed or
capital assets made during such period that, in accordance with GAAP, would be
classified as capital expenditures and (b) the aggregate amount of all
Capitalized Lease Liabilities incurred during such period.
"Capitalized Lease Liabilities" means all monetary obligations of the
Borrower or any of its Subsidiaries under any leasing or similar arrangement
that, in accordance with GAAP, would be classified as capitalized leases. For
purposes of this Agreement and each other Loan Document, the amount of such
obligations shall be the capitalized amount thereof, determined in accordance
with GAAP, and the stated maturity thereof shall be the date of the last payment
of rent or any other amount due under such lease prior to the first date upon
which such lease may be terminated by the lessee without payment of a penalty.
"Cash Equivalent Investment" means, at any time: (a) any evidence of
Indebtedness maturing not more than one year after such time, issued or
guaranteed by the United States Government; (b) commercial paper, maturing not
more than nine months from the date of issue, which is issued by (i) a
corporation (other than an Affiliate of the Borrower or of any other Obligor)
with a combined net worth of at least $100 million that is organized under the
laws of any state of the United States or of the District of Columbia, and that
conducts a substantial part of its business in the United States and that, on
the date of investment, is rated A-l by Standard & Poor's Corporation or P-l by
Xxxxx'x Investors Service, Inc., or (ii) any Lender (or its holding company);
(c) any certificate of deposit or bankers acceptance, maturing not more than one
year after such time, which is issued by either (i) a commercial banking
institution that is a member of the Federal Reserve System and has a combined
capital and surplus and undivided profits of not less than $500,000,000, or (ii)
any Lender; or (d) any repurchase agreement entered into with any Lender (or
other commercial banking institution of the stature referred to in clause
(c)(i)) which (i) is secured by a fully perfected security interest in any
obligation of the type described in any of clauses (a) through (c); and (ii) has
a market value at the time such repurchase agreement is
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entered into of not less than 100% of the repurchase obligation of such Lender
(or other commercial banking institution) thereunder.
"CEO" means the Chief Executive Officer and President of the Borrower and
OPCO on the Effective Date.
"CERCLA" means the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended.
"CERCLIS" means the Comprehensive Environmental Response Compensation
Liability Information System List.
"CFO" means the Chief Financial Officer of the Borrower and OPCO on the
Effective Date.
"Change in Control" means the occurrence of any of the following events or
the existence of any of the following conditions: (a) a change resulting when
any Unrelated Person or any Unrelated Persons acting together which would
constitute a Group, together with any Affiliates or Related Persons thereof (in
each case also constituting Unrelated Persons) shall at any time Beneficially
Own more than 49.99% of the aggregate voting power of all classes of Voting
Stock of the Borrower; (b) the failure of the Borrower to own, free and clear of
all Liens, all of the outstanding shares of Voting Stock of OPCO, MUSA or MVI
(other than Liens granted pursuant to the Pledge Agreements); (c) the
individuals and their successors nominated by the Lenders or the Committee (as
defined in the Plan of Reorganization) (or, if there shall be no Committee, then
by the Lenders) who constituted the Board of Directors of the Borrower as of the
Effective Date (other than additions thereto or removals therefrom from time to
time thereafter approved by the Board of Directors in accordance with the bylaws
of the Borrower) shall cease for any reason to constitute 50% or more of the
Board of Directors of the Borrower; (d) the sale, lease or transfer, in one or a
series of related transactions, of all or substantially all of OPCO's assets to
any Person or Group (as such term is used in Section 13(d)(3) of the Exchange
Act); (e) the merger or consolidation of the Borrower with or into another
Person or the merger of another Person into the Borrower with the effect that,
immediately after such transaction, any Person or Group of Persons shall have
become the Beneficial Owner of securities of the surviving Person of such merger
or consolidation representing a majority of the combined voting power of the
outstanding Equity Interests of the surviving Person ordinarily having the right
to vote in the election of directors; (f) the adoption of a plan leading to the
liquidation or dissolution of the Borrower or of OPCO (other than pursuant to
the Plan of Reorganization); or (g) any "change of control" or "change of
control event," however designated or denominated, shall have been deemed to
have occurred under any agreement of the Borrower or any of its Subsidiaries
having an aggregate economic value to such Person exceeding $5,000,000. As used
herein (i) "Beneficially Own" means "beneficially own" as defined in Rule 13d-3
of the Exchange Act, or any successor provision thereto; provided, however,
that, for purposes of this definition, a Person shall not be deemed to
Beneficially Own securities tendered pursuant to a tender or exchange offer made
by or on behalf of such Person or any of such Person's Affiliates until such
tendered securities are accepted for purchase or exchange; (ii) "Group" means a
"group" for purposes of Section 13(d) of the Exchange Act; (iii) "Unrelated
Person" means at any time any Person other than the Borrower, OPCO or any
Subsidiary; (iv) "Related Person" of any Person
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means any other Person owning (A) 5% or more of the outstanding common stock of
such Person or (B) 5% or more of the Voting Stock of such Person; and (v)
"Voting Stock" of any Person means Equity Interests of such Person which
ordinarily has voting power for the election of directors (or persons performing
similar functions) of such Person, whether at all times or only so long as no
senior class of securities has such voting power by reason of any contingency.
"Code" means the Internal Revenue Code of 1986, as amended, reformed or
otherwise modified from time to time.
"Collateral" means any Property of any kind constituting collateral for
the Obligations under any of the Loan Documents.
"Communications Act" means the Communications Act of 1934, and any similar
or successor federal statute, and the rules and regulations of the FCC
thereunder, all as the same may be in effect from time to time.
"Confirmation Order" is defined in the Third Recital.
"Contingent Liability" means any agreement, undertaking or arrangement by
which any Person guarantees, endorses or otherwise becomes or is contingently
liable upon (by direct or indirect agreement, contingent or otherwise, to
provide funds for payment, to supply funds to, or otherwise to invest in, a
debtor, or otherwise to assure a creditor against loss) the indebtedness,
obligation or any other liability of any other Person (other than by
endorsements of instruments in the course of collection or indemnification
provided in agreements entered into in the ordinary course of business), or
guarantees the payment of dividends or other distributions upon the shares of
any other Person. The amount of any Person's obligation under any Contingent
Liability shall (subject to any limitation set forth therein) be deemed to be
the outstanding principal amount (or maximum principal amount, if larger) of the
debt, obligation or other liability guaranteed thereby.
"Controlled Group" means all members of a controlled group of corporations
and all members of a controlled group of trades or businesses (whether or not
incorporated) under common control which, together with the Borrower, are
treated as a single employer under Section 414(b) or 414(c) of the Code or
Section 4001 of ERISA.
"Default" means any Event of Default or any condition, occurrence or event
that, after notice or lapse of time or both, would constitute an Event of
Default.
"Disclosure Schedule" means the Disclosure Schedule attached hereto as
Schedule I, as it may be amended, supplemented or otherwise modified from time
to time by the Borrower with the written consent of the Agent and the Required
Lenders.
"Domestic Office" means, relative to any Lender, the office of such Lender
designated as such below its signature hereto or designated in the Lender
Assignment Agreement or such other office of a Lender (or any successor or
assign of such Lender) within the United States as may be designated from time
to time by notice from such Lender, as the case may be, to each other Person
party hereto. A Lender may have separate Domestic Offices for purposes of
making, maintaining or continuing Loans.
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"Effective Date" means the date on which the conditions specified in
Article V are satisfied (or waived in accordance with Section 10.1).
"Employee Pension Plan" means any Plan that (a) is maintained by the
Borrower or any ERISA Affiliate and (b) is subject to Part 3 of Title I of
ERISA.
"Environmental Laws" means all applicable federal, state or local
statutes, laws, ordinances, codes, rules and regulations (including consent
decrees and administrative orders) relating to public health and safety and
protection of the environment.
"EPX" means Electronic Payment Exchange, Inc., and its successors.
"Equity Interests" means shares of capital stock, partnership interests,
membership interests in a limited liability company, beneficial interests in a
trust or other equity ownership interests in a Person.
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended, and any successor statute of similar import, together with the
regulations thereunder, in each case as in effect from time to time. References
to sections of ERISA also refer to any successor sections.
"Event of Default" is defined in Section 8.1.
"Exchange Act" means the Securities Exchange Act of 1934, as amended.
"Existing MVI Security Documents" is defined in Section 10.16.
"FCC" means the Federal Communications Commission, or any other similar or
successor agency of the federal government administering the Communications Act.
"Final Order" means an order that is no longer subject to appeal,
certiorari proceeding or other proceeding for review or rehearing, and as to
which no appeal, certiorari proceeding, or other proceeding for review or
rehearing shall then be pending.
"Fiscal Quarter" means any quarter of a Fiscal Year.
"Fiscal Year" means any period of twelve consecutive calendar months
ending on December 31; references to a Fiscal Year with a number corresponding
to any calendar year (e.g. the "2002 Fiscal Year") refer to the Fiscal Year
ending on the December 31 occurring during such calendar year.
"F.R.S. Board" means the Board of Governors of the Federal Reserve System,
or any successor thereto.
"GAAP" is defined in Section 1.4.
"Governmental Authority" means the government of the United States of
America, any other nation or any political subdivision thereof, whether state or
local, and any agency,
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authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.
"Guarantor" means any Subsidiary of the Borrower (other than OPCO) that
now or hereafter executes and delivers a Guaranty.
"Guaranty" means individually, each Subsidiary Guaranty; and "Guaranties"
means, collectively, all of them.
"guaranty" or "guaranteed," as applied to an obligation, shall mean and
include (a) a guaranty, direct or indirect, in any manner, of all or any part of
such obligation, and (b) any agreement, direct or indirect, contingent or
otherwise, the practical effect of which is to assure in any way the payment or
performance (or payment of damages in the event of non-performance) of all or
any part of such obligation, including, without limiting the foregoing, any
reimbursement obligations as to amounts drawn down by beneficiaries of
outstanding letters of credit or capital call requirements.
"Hazardous Material" means (a) any "hazardous substance", as defined by
CERCLA; (b) any "hazardous waste", as defined by the Resource Conservation and
Recovery Act, as amended; (c) any petroleum product; or (d) any pollutant or
contaminant or hazardous, dangerous or toxic chemical, material or substance
within the meaning of any other applicable federal, state or local law,
regulation, ordinance or requirement (including consent decrees and
administrative orders) relating to or imposing liability or standards of conduct
concerning any hazardous, toxic or dangerous waste, substance or material, all
as amended or hereafter amended.
"herein", "hereof", "hereto", "hereunder" and similar terms contained in
this Agreement or any other Loan Document refer to this Agreement or such other
Loan Document, as the case may be, as a whole and not to any particular Section,
paragraph or provision of this Agreement or such other Loan Document.
"Inciscent" means Inciscent, Inc., a Delaware corporation.
"including" means "including without limiting the generality of any
description preceding such term"; for purposes of this Agreement and each other
Loan Document, the parties hereto agree that the rule of ejusdem generis shall
not be applicable to limit a general statement that is followed by or referable
to an enumeration of specific matters, to matters similar to the matters
specifically mentioned.
"Indebtedness" means, with respect to any Person, and without duplication,
(a) all items, except items of shareholders' and partners' equity or capital
stock or surplus or general contingency or deferred tax reserves, which in
accordance with GAAP would be included in determining total liabilities as shown
on the liability side of a balance sheet of such Person, including to the extent
of the higher of the book value or fair market value of the property or asset
securing such obligation (if less than the amount of such obligation), secured
non-recourse obligations of such Person; (b) all direct or indirect obligations
of any other Person secured by any Lien to which any property or asset owned by
such Person is subject, but only to the extent of the higher of the fair market
value or the book value of the property or asset subject to such
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Lien (if less than the amount of such obligation) if the obligation secured
thereby shall not have been assumed; (c) to the extent not otherwise included,
all Capitalized Lease Liabilities of such Person and all obligations of such
Person with respect to leases constituting part of a sale and lease-back
arrangement; (d) all reimbursement obligations with respect to outstanding
letters of credit; and (e) to the extent not otherwise included, all obligations
subject to guaranties of such Person or its Subsidiaries.
"Indebtedness for Money Borrowed" means, with respect to any Person,
Indebtedness for money borrowed and Indebtedness represented by notes payable
and drafts accepted representing extensions of credit, all obligations evidenced
by bonds, debentures, notes or other similar instruments, all Indebtedness upon
which interest charges are customarily paid, all Capitalized Lease Liabilities,
all reimbursement obligations with respect to outstanding letters of credit, all
Indebtedness issued or assumed as full or partial payment for property or
services (other than trade payables arising in the ordinary course of business,
but only if and so long as such accounts are payable on customary trade terms),
whether or not any such notes, drafts, obligations or Indebtedness represent
Indebtedness for money borrowed, and, without duplication, guaranties of any of
the foregoing. For purposes of this definition, interest that is accrued but not
paid on the scheduled due date for such interest shall be deemed Indebtedness
for Money Borrowed.
"Indemnified Liabilities" is defined in Section 10.4.
"Indemnified Parties" is defined in Section 10.4.
"Intercompany Services Agreement" means that certain Intercompany Services
Agreement dated as of even date herewith, by and among Holdings, OPCO and MVI,
substantially in the form of Exhibit K attached hereto, together with any
amendments, renewals, restatements or other modifications from time to time.
"Intercreditor Agreement" means that certain Intercreditor and
Subordination Agreement dated as of even date herewith, by and among the Agent,
the Lenders and the Lenders, as from time to time amended, supplemented, amended
and restated, or otherwise modified and in effect on such date.
"Interest Expense" means, for any period, all cash interest paid
(including imputed interest with respect to Capitalized Lease Liabilities) with
respect to any Indebtedness for Money Borrowed of the Borrower and its
Subsidiaries on a consolidated basis during such period pursuant to the terms of
such Indebtedness for Money Borrowed, together with all fees paid in respect of
such Indebtedness for Money Borrowed during such period (but specifically
excluding fees paid during previous periods but amortized during such period in
accordance with GAAP).
"Investment" means, without duplication, and relative to any Person: (a)
any loan or advance made by such Person to any other Person (excluding
commission, travel and similar advances to officers and employees made in the
ordinary course of business); (b) any Contingent Liability of such Person; and
(c) any ownership or similar interest held by such Person in any other Person.
The amount of any Investment shall be the original principal or capital amount
thereof less all returns of principal or equity thereon (and without adjustment
by reason of the financial condition of such other Person) and shall, if made by
the transfer or exchange of
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Property other than cash, be deemed to have been made in an original principal
or capital amount equal to the fair market value of such Property.
"Laws" means all statutes, laws, ordinances, regulations, orders, writs,
injunctions, or decrees of the United States, any state, any foreign country, or
any other Tribunal.
"Lender Assignment Agreement" means a Lender Assignment Agreement
substantially in the form of Exhibit B attached hereto.
"Lenders" is defined in the Preamble, and includes their successors and
assigns.
"License" means any radio, telephone, microwave, paging or other license,
authorization, certificate of compliance or convenience, franchise, approval or
permit, granted or issued by the FCC or any other Governmental Authority and
held by the Borrower and its Subsidiaries, all of which are listed as of the
Effective Date on Schedule I hereto.
"License Agreement" means that certain License and Use Agreement dated as
of even date herewith, by and between OPCO and MUSA pursuant to the Plan of
Reorganization, together with any amendments, renewals, restatements or other
modifications thereof from time to time.
"Lien" means any security interest, mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or otherwise), or
charge against, or interest in, Property to secure payment of a debt or
performance of an obligation.
"Loan" means, as the context may require, any Term Loan or PIK Loans.
"Loan Amount" means $20,000,000, as such amount may be reduced from time
to time by prepayment of the Loans pursuant to Section 3.1.
"Loan Documents" means (a) this Agreement; (b) the PIK Notes; (c) the
Security Documents; (d) the Senior Secured Credit Agreement; (e) the Senior
Secured Notes; (f) the Intercreditor Agreement; and (g) all instruments,
certificates and agreements now or hereafter executed or delivered to the Agent
or any Lender pursuant to any of the foregoing, as well as all amendments,
modifications, renewals, extensions, increases and rearrangements of, and
substitutions for, any of the foregoing.
"Loan Termination Date" means the earlier of (a) December 31, 2004 and (b)
the date on which any Loan Termination Event occurs.
"Loan Termination Event" means (a) the occurrence of any Default described
in clauses (a) through (d) of Section 8.1.12 with respect to the Borrower or any
other Obligor; or (b) the occurrence and continuance of any other Event of
Default and either (i) the declaration of the Loans to be due and payable
pursuant to Section 8.3, or (ii) in the absence of such declaration, the giving
of notice by the Agent, acting at the direction of the Required Lenders, to the
Borrower that the Commitments have been terminated.
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"Materially Adverse Effect" means (a) any material adverse effect upon the
business, assets, liabilities, financial condition, results of operations,
properties or business prospects of the Borrower and its Subsidiaries, or (b) a
material adverse effect upon (i) the binding nature, validity or enforceability
of this Agreement or of any other Loan Document, or upon (ii) the ability of the
Borrower or any other Obligor to perform their respective obligations (including
payment obligations) under this Agreement or any other Loan Document, or upon
(iii) the value of the Collateral or upon (iv) the rights, benefits or interests
of the Lenders in and to the Loans or the rights of the Agent and the Lenders in
the Collateral; in either case, whether resulting from any single act, omission,
situation, status, event or undertaking, or taken together with other such acts,
omissions, situations, statuses, events or undertakings; provided, however, that
liability arising from taxes (including interest and penalties related thereto,
if any) owed by the Borrower and any Obligor, or any effect therefrom on the
assets or financial condition of the Borrower or any Obligor, of an amount in
excess of the cash reserved pursuant to the Order of the Xxx. Xxxxxx Xxxxxxxx
Pursuant to Sections 105(a) and 1123(a) of the Bankruptcy Code and Federal Rule
of Bankruptcy Procedure 3020(a) Establishing Disputed Claims Reserves for
Disputed Priority and Secured Tax Claims dated September 25, 2002 for the
payment of Allowed Priority Tax Claims and Allowed Secured Tax Claims shall not
create a Material Adverse Effect as defined herein.
"Material Agreement" means any contract or agreement binding on the
Borrower or any of its Subsidiaries that is material to the consolidated
financial condition or operations of the Borrower and its Subsidiaries.
"Metrocall Entities" is defined in the Second Recital, and includes their
successors.
"Monthly Payment Date" means the last day of each calendar month or, if
any such day is not a Business Day, the next succeeding Business Day.
"MUSA" is defined in the Second Recital, and includes its successors.
"MVI" means Metrocall Ventures, Inc, a Delaware corporation, and includes
its successors.
"Necessary Authorizations" means all approvals and licenses from, and all
filings and registrations with, any Governmental Authority, including the
Licenses and all approvals, licenses, filings and registrations under the
Communications Act, necessary in order to enable the Borrower and its
Subsidiaries to own, construct, maintain and operate paging service systems and
communications businesses incidental or directly relating thereto, including the
resale of narrowband and broadband one- and two-way communications systems.
"Net Cash Interest Expense" means, with respect to the Borrower and its
Subsidiaries on a consolidated basis for any period, Interest Expense minus
interest earned by the Borrower and its Subsidiaries on investments, as
determined in accordance with GAAP.
"Net Income" means, for the Borrower and its Subsidiaries on a
consolidated basis, for any period, net income determined in accordance with
GAAP.
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"New MVI Security Documents" is defined in Section 10.16, as each may be
amended, renewed, restated or modified from time to time.
"Note" means, as the context may require, any Term Note or PIK Note.
"Obligations" means all obligations (monetary or otherwise) of the
Borrower and any other Obligor arising under or in connection with this
Agreement, the Notes and each other Loan Document.
"Obligor" means the Borrower, OPCO, MUSA, MVI and any other Person (other
than the Agent or any Lender) obligated under any Loan Document.
"OPCO" is defined in the First Recital, and includes its successors.
"Operating Cash Flow" means, with respect to the Borrower and its
Subsidiaries on a consolidated basis for any Fiscal Quarter, the sum of (a) Net
Income for such quarter (after eliminating any extraordinary gains and losses
including gains and losses from the sale of assets, other than sales of pagers
and other products or services in the ordinary course of business, and any
deferred tax benefits), plus (b) to the extent deducted in determining Net
Income, the sum of the following for such period: (i) Interest Expense, plus
(ii) tax expense, plus (iii) depreciation and amortization expense, plus (iv)
legal and other necessary third-party fees and expenses paid in connection with
the management and implementation of the Plan of Reorganization according to its
terms, plus (v) other non-cash charges, all as determined in accordance with
GAAP.
"Operating Cash Flow to Net Cash Interest Expense Ratio" means, as of any
date, the ratio of Operating Cash Flow (calculated for the Fiscal Quarter then
most recently ended) to Net Cash Interest Expense (calculated for the Fiscal
Quarter then most recently ended).
"Organic Document" means, relative to the Borrower and any other Obligor,
its certificate of incorporation, formation or organization (or comparable
document), its by-laws or operating agreement, and all shareholder agreements,
partnership agreements, limited liability company or operating agreements,
voting trusts and similar arrangements applicable to any of its authorized
shares of capital stock or other securities.
"Participant" is defined in Section 10.12.2.
"PBGC" means the Pension Benefit Guaranty Corporation and any entity
succeeding to any or all of its functions under ERISA.
"Pension Plan" means a "pension plan", as such term is defined in section
3(2) of ERISA, which is subject to Title IV of ERISA (other than a multiemployer
plan as defined in section 4001(a)(3) of ERISA), and to which the Borrower or
any corporation, trade or business that is, along with the Borrower, a member of
a Controlled Group, may have liability, including any liability by reason of
having been a substantial employer within the meaning of section 4063 of ERISA
at any time during the preceding five years, or by reason of being deemed to be
a contributing sponsor under section 4069 of ERISA.
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"Percentage" means, with respect to any Lender, the ratio, expressed as a
percentage, of the unpaid principal amount of the outstanding Loans owing to
such Lender, divided by the aggregate unpaid principal amount of the outstanding
Loans owing to all Lenders. The initial Percentages of the Lenders are set forth
on Schedule II.
"Permitted Liens" means, collectively:
(a) Liens in favor of the Agent or any Lender securing payment of
the Obligations and granted pursuant to any Loan Document;
(b) Restrictions on the transfer of the Licenses or assets of such
Person imposed by any of the Licenses as presently in effect or by the
Communications Act;
(c) Liens granted to secure payment of Indebtedness in an aggregate
principal amount not to exceed $15,000,000 at any time outstanding which
is incurred by the Borrower or any of its Subsidiaries to a vendor of any
assets to finance its acquisition of such assets, which Liens cover only
those assets acquired with the proceeds of such Indebtedness;
(d) Liens for taxes, assessments or other governmental charges or
levies not at the time delinquent or thereafter payable without penalty or
being diligently contested in good faith by appropriate proceedings and
for which adequate reserves in accordance with GAAP shall have been set
aside by the Borrower or any of its Subsidiaries on its books;
(e) Liens of carriers, warehousemen, mechanics, materialmen and
landlords incurred in the ordinary course of business for sums not overdue
or being diligently contested in good faith by appropriate proceedings and
for which adequate reserves in accordance with GAAP shall have been set
aside by the Borrower or its Subsidiaries on its books;
(f) Liens incurred in the ordinary course of business in connection
with workmen's compensation, unemployment insurance or other forms of
governmental insurance or benefits, or to secure performance of tenders,
statutory obligations, leases and contracts (other than for borrowed
money) entered into in the ordinary course of business or to secure
obligations on surety or appeal bonds;
(g) Liens reflected by Uniform Commercial Code financing statements
filed in respect of Capitalized Lease Liabilities, and true leases of the
Borrower or any of its Subsidiaries;
(h) Purchase money security interests securing Indebtedness in an
aggregate principal amount not to exceed $500,000 at any time outstanding;
(i) Easements, rights-of-way, and other similar encumbrances on the
use of real property which do not materially interfere with the ordinary
conduct of the business of such Person or the use of such property;
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(j) Liens securing indebtedness to EPX or any other third-party
merchant processing services provider in connection with EPX's or such
third party's reserves against fees and potential chargebacks, in an
aggregate amount not to exceed $3,000,000 at any time outstanding, plus
accrued interest.
(k) Liens with respect to $1,905,095.50 in cash, plus accrued
interest, held by Huntington Bank as of the Effective Date, as such amount
may be reduced from time to time;
(l) permitted secured financings and secured debt existing on the
date of the commencement of the Bankruptcy Case and identified in Item
7.2.3 ("Allowed Pre-Chapter 11 Liens") of the Disclosure Schedule, and
which are to be reinstated upon the confirmation of the Plan of
Reorganization pursuant to the terms thereof; and
(m) Liens securing other Indebtedness in an aggregate principal
amount not to exceed $10,000,000, provided that such Liens do not attach
to assets of such Person which constitute "margin stock," as that term is
defined in Regulation U.
"Person" means any natural person, corporation, partnership, limited
liability company, firm, association, trust, government, governmental agency or
any other entity, whether acting in an individual, fiduciary or other capacity.
"PIK Loan" is defined in Section 3.2.3.
"PIK Note" means any PIK promissory note of the Borrower, in the form of
Exhibit A-2 hereto, made payable to the order of any Lender pursuant to the
terms of this Agreement (as such promissory note may be amended, endorsed or
otherwise modified from time to time), evidencing the aggregate principal
indebtedness of the Borrower to such Lender under this Agreement resulting from
outstanding PIK Loans, and which also means all other promissory notes accepted
from time to time in substitution therefor or renewal thereof.
"Pledge Agreement" means, collectively, each Pledge Agreement dated as of
even date herewith, or otherwise delivered pursuant Section 7.1.1 hereof or any
other Loan Document, executed by the Borrower, MUSA and MVI, and by any other
Person that is or becomes a Subsidiary of the Borrower and executes a Pledge
Agreement pursuant to the terms hereof, substantially in the form of Exhibit G
attached hereto, together with any amendments, renewals, restatements or other
modifications from time to time. The term "Pledge Agreements" shall include each
and every Pledge Agreement executed and delivered pursuant to any Loan Document.
"Plan" means any Pension Plan or Welfare Plan.
"Plan of Reorganization" is defined in the Third Recital.
"Prior Loan Agreement" is defined in the Fourth Recital.
"Property" means any interest in any kind of property or asset, whether
real, personal or mixed, or tangible or intangible.
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"Quarterly Payment Date" means the last day of each March, June, September
and December or, if any such day is not a Business Day, the next succeeding
Business Day.
"Release" means a "release," as such term is defined in CERCLA.
"Reportable Event" means, with respect to any Employee Pension Plan, an
event described in Section 4043(b) of ERISA.
"Required Lenders" means, at any time, the Lenders holding at least 51% of
the aggregate unpaid principal amount of the outstanding Loans; provided,
however, that with respect to (a) the waiver of any default by the Borrower in
the payment of principal owing hereunder (excluding final maturity) and (b) any
extensions of scheduled amortization payments (excluding final maturity),
"Required Lenders" means the Lenders holding at least 75% of the aggregate
unpaid principal amount of the outstanding Loans.
"Resource Conservation and Recovery Act" means the Resource Conservation
and Recovery Act, 42 U.S.C. Section 690, et seq., as in effect from time to
time.
"Security Agreement" means, individually (a) the Borrower Security
Agreement; (b) the "Security Agreement" as defined in the Senior Secured Credit
Agreement; and (c) each Subsidiary Security Agreement; and "Security Agreements"
means, collectively, all of them.
"Security Documents" means, collectively, (a) the Guaranties; (b) the
Security Agreements; (c) the Trademark Security Agreement; (d) the Pledges; (e)
the New MVI Security Documents; and (f) any additional security agreement,
pledge, guaranty, mortgage, deed of trust or instrument necessary or appropriate
to grant to the Agent and/or the Lenders a Lien on the Collateral to secure the
Obligations or to perfect or maintain any Lien.
"Security Interest" means all Liens in favor of the Agent, for the benefit
of itself and the Lenders, created hereunder or under any of the Security
Documents to secure the Obligations.
"Senior Loan Documents" means the "Loan Documents" under the Senior
Secured Credit Agreement.
"Senior Obligations Repayment Date" means the date on which all Senior
Secured Obligations have been paid in full in cash.
"Senior Secured Credit Agreement" means that certain $60,000,000 Credit
Agreement dated as of even date herewith, by and among OPCO, the Agent and the
Lenders as defined therein.
"Senior Secured Notes" means all promissory notes made by OPCO in favor of
the various Lenders (as defined in the Senior Secured Credit Agreement)
evidencing Loans (as defined in the Senior Secured Credit Agreement) made by
such Lenders.
"Senior Secured Obligations" means all obligations (monetary or otherwise)
of OPCO and each other Obligor arising under or in connection with the Senior
Loan Documents.
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"Stated Maturity Date" means December 31, 2004.
"Subsidiary" means, with respect to any Person, any corporation,
partnership, limited liability company, joint venture, trust, or similar
business organization of which more than 50% of the outstanding Equity Interests
having ordinary voting power (irrespective of whether at the time Equity
Interests of such Person shall or might have voting power upon the occurrence of
any contingency) is at the time directly or indirectly owned by such Person, by
such Person and one or more other Subsidiaries of such Person, or by one or more
other Subsidiaries of such Person. Unless the context specifies otherwise,
references to a "Subsidiary" or to "Subsidiaries" will be to a subsidiary or
subsidiaries of the Borrower.
"Subsidiary Guaranty" means, individually, (a) that certain Subsidiary
Guaranty dated as of even date herewith between MUSA and the Agent; and (ii) any
other guaranty executed by a Person that is or becomes a Subsidiary of the
Borrower or OPCO, each substantially in the form of Exhibit E attached hereto,
together with any amendments, renewals, restatements or other modifications
thereof from time to time, and "Subsidiary Guaranties" means, collectively, all
of them.
"Subsidiary Security Agreement" means, individually, (i) that certain
Subsidiary Security Agreement dated as even date herewith between MUSA and the
Agent; and (ii) any other security agreement executed by a Person that is or
becomes a Subsidiary of the Borrower or OPCO, each substantially in the form of
Exhibit F-2 attached hereto, together with any amendments, renewals,
restatements or other modifications thereof from time to time; and "Subsidiary
Security Agreements" means, collectively, all of them.
"Tax Sharing Agreement" means that certain Tax Sharing Agreement dated as
of even date herewith, among Holdings, the Borrower, MUSA and MVI, substantially
in the form of Exhibit J attached hereto, together with any amendments,
renewals, restatements or other modifications thereof from time to time.
"Taxes" is defined in Section 4.2.
"TD" is defined in the Preamble.
"Term Loan" is defined in Section 2.1.
"Term Note" means any secured subordinated promissory note of the
Borrower, in the form of Exhibit A-1 hereto, made payable to the order of any
Lender pursuant to the terms of this Agreement (as such promissory note may be
amended, endorsed or otherwise modified from time to time), evidencing the
aggregate principal indebtedness of the Borrower to such Lender under this
Agreement resulting from outstanding Term Loans, which Term Loans constitute a
continuation, extension and renewal in part of the Borrower's Obligations (each
as defined in the Prior Loan Agreement) under the Prior Loan Agreement, and
which subordinated promissory notes are being issued by the Borrower in partial
satisfaction of the Allowed Bank Group Claims, and which also means all other
promissory notes accepted from time to time in substitution therefor or renewal
thereof.
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"Total Net Debt" means, as of any date (a) the outstanding principal
amount of all Indebtedness for Money Borrowed of the Borrower and its
Subsidiaries (excluding MVI and Inciscent) as of such date minus (b)
Unrestricted Cash as of such date.
"Total Net Debt to Annualized Operating Cash Flow Ratio" means the ratio
of Total Net Debt to Annualized Operating Cash Flow.
"Trademark Security Agreement" means the Trademark Security Agreement
dated as of even date herewith, executed by MUSA or otherwise executed and
delivered pursuant to Section 7.1.1 or pursuant to any other Loan Document,
substantially in the form of Exhibit H attached hereto, together with any
amendments, renewals, restatements or other modifications from time to time. The
term "Trademark Security Agreements" shall include each and every Trademark
Security Agreement executed and delivered pursuant to the Loan Documents.
"Tribunal" means any state, commonwealth, federal, foreign, territorial,
or other court or governmental department, commission, board, bureau, agency, or
instrumentality or any properly convened arbitration.
"UCC" means the Uniform Commercial Code in effect from time to time in the
State of New York.
"United States" or "U.S." means the United States of America, its fifty
States and the District of Columbia.
"Unrestricted Cash" means, as of any date, (a) the aggregate amount of
cash or cash equivalents of the Borrower, OPCO and MUSA, minus (b) such amounts
that are used to establish reserves as required under the Plan of
Reorganization, minus (c) such amounts that are subject to Permitted Liens,
minus (d) cash necessary to make distributions (other than to the Lenders or for
dividends with respect to any equity securities of the Borrower) pursuant to the
Plan of Reorganization.
"Welfare Plan" means a "welfare plan", as such term is defined in section
3(1) of ERISA.
SECTION 1.2. Use of Defined Terms. Unless otherwise defined or the context
otherwise requires, terms for which meanings are provided in this Agreement
shall have such meanings when used in the Disclosure Schedule and in the PIK
Notes, any other Loan Document, certificate, notice or other communication
delivered from time to time in connection with this Agreement or any other Loan
Document.
SECTION 1.3. Cross-References. Unless otherwise specified, references in
this Agreement and in any other Loan Document to any Article or Section are
references to such Article or Section of this Agreement or such other Loan
Document, as the case may be, and, unless otherwise specified, references in any
Article, Section or definition to any clause are references to such clause of
such Article, Section or definition.
SECTION 1.4. Accounting and Financial Determinations. Unless otherwise
specified, all accounting terms used herein or in any other Loan Document shall
be interpreted, all accounting determinations and computations hereunder or
thereunder (including under Section
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7.2.1) shall be made, and all financial statements required to be delivered
hereunder or thereunder shall be prepared in accordance with generally accepted
accounting principles as in effect from time to time in the United States
("GAAP"), consistently applied.
ARTICLE II
LOANS
SECTION 2.1. Conversion of Existing Obligations; No Borrowings. On the
Effective Date, the Lenders agree to convert, continue and extend $20,000,000 of
Loans (as defined in the Prior Loan Agreement) under the Prior Loan Agreement
into term loans hereunder (such converted and extended loans herein relative to
each Lender, its "Term Loans"). For the sake of clarity, it is understood that
the Borrower shall not be able to request any other Term Loans hereunder and
that the Lenders shall not be obligated make any additional loans to the
Borrower. No amounts paid or prepaid with respect to any Term Loans may be
reborrowed.
SECTION 2.2. Notes. Each Lender's Term Loan shall be evidenced by a Term
Note payable to the order of such Lender in a maximum principal amount equal to
such Lender's Percentage of the Loan Amount. Each Lender's PIK Loans described
in Section 3.2.3 shall be evidenced by PIK Notes payable to the order of such
Lender in a maximum principal amount of interest otherwise due and payable in
cash on a Quarterly Payment Date, which payment is precluded to be paid in cash
under the terms of the Senior Secured Credit Agreement and the Intercreditor
Agreement but is nonetheless permitted to be paid by the issuance of PIK Notes
in lieu of such cash payment. The Borrower hereby irrevocably authorizes each
Lender to make (or cause to be made) appropriate notations on the grid attached
to such Lender's Notes (or on any continuation of such grid), which notations,
if made, shall evidence, inter alia, the date of, the outstanding principal of,
and the interest rate applicable to, such Lender's Loan. Such notations shall be
conclusive and binding on the Borrower absent manifest error; provided, however,
that the failure of any Lender to make any such notations shall not limit or
otherwise affect any Obligations of the Borrower or any other Obligor.
ARTICLE III
REPAYMENTS, PREPAYMENTS AND INTEREST
SECTION 3.1. Repayments. The Borrower shall repay in full the unpaid
principal amount of each Loan upon the Loan Termination Date.
SECTION 3.1.1. Prepayments
(a) Optional Prepayments. The Borrower may, from time to time on any
Business Day, without penalty or premium, make a voluntary prepayment, in
whole or in part, of the outstanding principal amount of any Loans;
provided, however, that
(i) all such voluntary prepayments shall require three
Business Days' prior written notice to the Agent; and
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(ii) all such voluntary partial prepayments shall be in an
aggregate minimum amount of $2,000,000 and an integral multiple of
$1,000,000; and
(b) Mandatory Prepayments/Scheduled Repayments. The Borrower shall:
(i) on each Quarterly Payment Date, commencing June 30, 2004,
make a scheduled repayment of the aggregate outstanding principal
amount, if any, of all Term Loans in the amount shown below opposite
such Quarterly Payment Date:
DATE PREPAYMENT AMOUNT
6/30/04 $ 3,000,000
9/30/04 $ 2,000,000
12/31/04 $15,000,000
(ii) from and after the Senior Obligations Repayment Date,
within five Business Days after the end of each Fiscal Quarter
thereafter, make a mandatory prepayment in an amount equal to 100%
of Unrestricted Cash for such Fiscal Quarter in excess of the sum of
(a) $10,000,000 plus (b) an amount not greater than $2,000,000, to
the extent that such amount in clause (b) has been expressly set
aside as a general reserve for the payment of existing contractual
obligations; provided, however, that the Borrower shall make all
scheduled mandatory prepayments in an amount equal to 100% of
Unrestricted Cash for such Fiscal Quarter in excess of the sum of
$10,000,000 subsequent to the earlier to occur of (a) the Borrower's
written notice to the Agent to the effect that such reserve is no
longer required and (b) 364 days from the Effective Date. Each
mandatory prepayment shall be certified as to the actual amount by
an Authorized Officer of the Borrower upon such mandatory
prepayment; and
(iii) from and after the Senior Obligations Repayment Date,
immediately upon any acceleration of the Stated Maturity Date of any
Loans pursuant to Section 8.2 or Section 8.3, repay all Loans,
unless, pursuant to Section 8.3, only a portion of all Loans is so
accelerated, in which event the Borrower shall immediately repay the
amount so accelerated.
Each prepayment of Loans made pursuant to Section 3.1.1(a) and Section
3.1.1(b)(ii) shall be applied, to the extent of such prepayment, in the inverse
order of the scheduled repayments of the Loans set forth in Section 3.1.1(b)(i).
Each prepayment of any Loans made pursuant to this subsection 3.1.1 shall be
without premium or penalty.
SECTION 3.2. Interest. Interest on the outstanding principal amount of
Loans shall accrue interest at a rate per annum equal to twelve percent (12%),
and shall be payable in accordance with this Section 3.2.
SECTION 3.2.1. Post-Maturity and Default Rates. After the date any
principal amount of any Loan is due and payable (whether on the Stated Maturity
Date, upon acceleration or otherwise), or after any other monetary Obligation of
the Borrower shall have become due and
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payable, or during the occurrence and continuance of any Event of Default, the
Borrower shall pay, but only to the extent permitted by law, interest (after as
well as before judgment) on such amounts at a rate per annum equal fourteen
percent (14%).
SECTION 3.2.2. Payment Dates. Interest accrued on each Loan shall be
payable in arrears, without duplication:
(a) on the Stated Maturity Date therefor;
(b) on the date of any payment or prepayment, in whole or in part,
of principal outstanding on such Loan;
(c) with respect to Term Loans and with respect to PIK Loans, (A)
from the Effective Date to the Senior Obligations Repayment Date, on each
Quarterly Payment Date occurring after the Effective Date and (B) from and
after the Senior Obligations Repayment Date, on each Monthly Payment Date;
and
(d) on that portion of any Loans the Stated Maturity Date of which
is accelerated pursuant to Section 8.2 or Section 8.3, immediately upon
such acceleration.
Except as otherwise provided herein, interest accrued on Loans or other monetary
Obligations arising under this Agreement or any other Loan Document after the
date such amount is due and payable (whether on the Stated Maturity Date, upon
acceleration or otherwise) shall be payable upon demand.
SECTION 3.2.3. Payment of Interest with PIK Notes. During the period
commencing from the Effective Date to the Senior Obligations Repayment Date, all
interest accruing hereunder that becomes due and payable on a Quarterly Payment
Date shall be paid to the Lenders by the issuance of a PIK Note in a principal
amount equal to the amount of accrued interest due and payable to such Lender on
such Quarterly Payment Date. Subsequent to the Senior Obligations Repayment
Date, all interest accruing hereunder shall become due and payable monthly on a
Monthly Payment Date and shall be paid to the Lenders in cash. The issuance by
the Borrower of a PIK Note in satisfaction of its Obligation to pay accrued
interest in cash shall be deemed the extension of an additional Loan pursuant to
the terms of, and subject to, all Loan Documents, and is referred to herein as a
"PIK Loan"; provided, however, that the failure of the Borrower to issue to any
Lender a PIK Note on any Quarterly Payment Date when due as provided in this
Section 3.2.3 shall not alter or affect the obligation of the Borrower to pay
the amount due on such Quarterly Payment Date under the terms applicable to a
PIK Loan, and such accrued and unpaid amount shall in all events be deemed to be
a PIK Loan hereunder notwithstanding any action or non-action of the Borrower.
Interest on each PIK Loan shall accrue at the interest rates set forth in this
Section 3.2, which shall be calculated as of each Quarterly Payment Date or
Monthly Payment Date, as the case may be, and added to the outstanding principal
of each PIK Note. Unless prepaid earlier pursuant to the provisions of Section
3.1.1, all PIK Notes and all accrued and capitalized interests thereon are due
and payable on the Stated Maturity Date.
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ARTICLE IV
CERTAIN OTHER PROVISIONS
SECTION 4.1. Increased Capital Costs. If any change in, or the
introduction, adoption, effectiveness, interpretation, reinterpretation or
phase-in of, any law or regulation, directive, guideline, decision or request
(whether or not having the force of law) of any court, central bank, regulator
or other governmental authority affects or would affect the amount of capital
required or expected to be maintained by any Lender or any Person controlling
such Lender, and such Lender determines (in its sole and absolute discretion)
that the rate of return on its or such controlling Person's capital as a
consequence of its Loan is reduced to a level below that which such Lender or
such controlling Person could have achieved but for the occurrence of any such
circumstance, then, in any such case upon notice from time to time by such
Lender to the Borrower, the Borrower shall immediately pay directly to such
Lender additional amounts sufficient to compensate such Lender or such
controlling Person for such reduction in rate of return. A statement of such
Lender as to any such additional amount or amounts (including calculations
thereof in reasonable detail) shall, in the absence of manifest error, be
conclusive and binding on the Borrower. In determining such amount, such Lender
may use any method of averaging and attribution that it (in its sole and
absolute discretion) shall deem applicable.
SECTION 4.2. Taxes. All payments by the Borrower of principal of, and
interest on, the Loans and all other amounts payable hereunder shall be made
free and clear of and without deduction for any present or future income,
excise, stamp or franchise taxes and other taxes, fees, duties, withholdings or
other charges of any nature whatsoever imposed by any taxing authority, but
excluding franchise taxes and taxes imposed on or measured by any Lender's net
income or receipts (such non-excluded items being called "Taxes"). In the event
that any withholding or deduction from any payment to be made by the Borrower
hereunder is required in respect of any Taxes pursuant to any Applicable Law,
then the Borrower will
(a) pay directly to the relevant authority the full amount required
to be so withheld or deducted;
(b) promptly forward to the Agent an official receipt or other
documentation satisfactory to the Agent evidencing such payment to such
authority; and
(c) pay to the Agent for the account of the Lenders such additional
amount or amounts as is necessary to ensure that the net amount actually
received by each Lender will equal the full amount such Lender would have
received had no such withholding or deduction been required.
Moreover, if any Taxes are directly asserted against the Agent or any Lender
with respect to any payment received by the Agent or such Lender hereunder, the
Agent or such Lender may pay such Taxes and the Borrower will promptly pay such
additional amounts (including any penalties, interest or expenses) as is
necessary in order that the net amount received by such person after the payment
of such Taxes (including any Taxes on such additional amount) shall equal the
amount such person would have received had not such Taxes been asserted.
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If the Borrower fails to pay any Taxes when due to the appropriate taxing
authority or fails to remit to the Agent, for the account of the respective
Lenders, the required receipts or other required documentary evidence, the
Borrower shall indemnify the Lenders for any incremental Taxes, interest or
penalties that may become payable by any Lender as a result of any such failure.
For purposes of this Section 4.2, a distribution hereunder by the Agent or any
Lender to or for the account of any Lender shall be deemed a payment by the
Borrower.
Upon the request of the Borrower or the Agent, each Lender that is
organized under the laws of a jurisdiction other than the United States shall,
prior to the due date of any payments under the PIK Notes, execute and deliver
to the Borrower and the Agent, on or about the first scheduled payment date in
each Fiscal Year, one or more (as the Borrower or the Agent may reasonably
request) United States Internal Revenue Service Forms W-8ECI, W-8BEN, W-8EXP or
W-8IMY, certifying in either case that such Foreign Lender is entitled to
receive payments under this Agreement without deduction or withholding of any
United States federal income taxes. Each Foreign Lender which so delivers a Form
W-8ECI, W-8BEN, W-8EXP or W-8IMY further undertakes to deliver to the Borrower
two additional copies of such form (or a successor form) on or before the date
that such form expires (currently, three successive calendar years for Form
W-8BEN or Form W-8ECI) or becomes obsolete or after the occurrence of any event
requiring a change in the most recent forms so delivered by it, and such
amendments thereto or extensions or renewals thereof as may be reasonably
requested by the Borrower, in each case certifying that such Foreign Lender is
entitled to receive payments under this Agreement without deduction or
withholding of any United States federal income taxes, unless an event
(including any change in treaty, law or regulation) has occurred prior to the
date on which any such delivery would otherwise be required which renders all
such forms inapplicable or which would prevent such Foreign Lender from duly
completing and delivering any such form with respect to it and such Foreign
Lender advises the Borrower that it is not capable of receiving payments without
any deduction or withholding of United States federal income tax.
SECTION 4.3. Payments, Computations, etc. Unless otherwise expressly
provided, all payments by the Borrower pursuant to this Agreement, the PIK Notes
or any other Loan Document shall be made by the Borrower to the Agent for the
pro rata account of the Lenders entitled to receive such payment. All such
payments required to be made to the Agent shall be made, without setoff,
deduction or counterclaim, not later than 11:00 a.m., New York City time, on the
date due, in same day or immediately available funds, to such account as the
Agent shall specify from time to time by notice to the Borrower. Funds received
after that time shall be deemed to have been received by the Agent on the next
succeeding Business Day. The Agent shall promptly remit in same day funds to
each Lender its share, if any, of such payments received by the Agent for the
account of such Lender. All interest and fees shall be computed on the basis of
the actual number of days (including the first day but excluding the last day)
occurring during the period for which such interest or fee is payable over a
year comprised of 365 days or, if appropriate, 366 days. Whenever any payment to
be made shall otherwise be due on a day that is not a Business Day, such payment
shall be made on the next succeeding Business Day and such extension of time
shall be included in computing interest and fees, if any, in connection with
such payment.
SECTION 4.4. Sharing of Payments. If any Lender shall obtain any payment
or other recovery (whether voluntary, involuntary, by application of setoff or
otherwise) on account of
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any Loan (other than pursuant to the terms of Section 4.1) in excess of its pro
rata share of payments then or therewith obtained by all Lenders, such Lender
shall purchase from the other Lenders such participations in Loans made by them
as shall be necessary to cause such purchasing Lender to share the excess
payment or other recovery ratably with each of them; provided, however, that if
all or any portion of the excess payment or other recovery is thereafter
recovered from such purchasing Lender, the purchase shall be rescinded and each
Lender which has sold a participation to the purchasing Lender shall repay to
the purchasing Lender the purchase price to the ratable extent of such recovery
together with an amount equal to such selling Lender's ratable share (according
to the proportion of (a) the amount of such selling Lender's required repayment
to the purchasing Lender to (b) the total amount so recovered from the
purchasing Lender) of any interest or other amount paid or payable by the
purchasing Lender in respect of the total amount so recovered. The Borrower
agrees that any Lender so purchasing a participation from another Lender
pursuant to this Section may, to the fullest extent permitted by law, exercise
all its rights of payment (including pursuant to Section 4.5) with respect to
such participation as fully as if such Lender were the direct creditor of the
Borrower in the amount of such participation. If under any applicable
bankruptcy, insolvency or other similar law, any Lender receives a secured claim
in lieu of a setoff to which this Section applies, such Lender shall, to the
extent practicable, exercise its rights in respect of such secured claim in a
manner consistent with the rights of the Lenders entitled under this Section to
share in the benefits of any recovery on such secured claim.
SECTION 4.5. Setoff. Each Lender shall, upon the occurrence of any Default
described in clauses (a) through (d) of Section 8.1.12 with respect to the
Borrower or any other Obligor or, with the consent of the Required Lenders, upon
the occurrence of any other Event of Default, have the right to appropriate and
apply to the payment of the Obligations owing to it (whether or not then due),
and (as security for such Obligations) the Borrower hereby grants to each Lender
a continuing security interest in, any and all balances, credits, deposits,
accounts or moneys of the Borrower then or thereafter maintained with such
Lender; provided, however, that any such appropriation and application shall be
subject to the provisions of Section 4.4. Each Lender agrees promptly to notify
the Borrower and the Agent after any such setoff and application made by such
Lender; provided, however, that the failure to give such notice shall not affect
the validity of such setoff and application. The rights of each Lender under
this Section are in addition to other rights and remedies (including other
rights of setoff under Applicable Law or otherwise) which such Lender may have.
ARTICLE V
CONDITIONS PRECEDENT
The obligations of the Lenders under this Agreement shall be subject to
the prior or concurrent satisfaction of each of the conditions precedent set
forth in this Article V.
SECTION 5.1. Organizational Documents. The Agent shall have received
copies of the Organic Documents of each Obligor, together with all amendments
thereto, certified by an Authorized Officer, as applicable, as being true,
correct and complete, and a certificate of good standing for each Obligor,
certified by the appropriate governmental officer in its jurisdiction of
incorporation or organization.
22
SECTION 5.2. Resolutions, Incumbency, etc. The Agent shall have received
from each Obligor a certificate, dated as of the Effective Date, of its
Secretary or Assistant Secretary as to:
(a) resolutions of its Board of Directors (or other governing body)
then in full force and effect authorizing the execution, delivery and
performance of this Agreement, the Notes and each other Loan Document to
be executed by it; and
(b) the incumbency and signatures of those of its officers
authorized to act with respect to this Agreement, the Notes and each other
Loan Document to be executed by it, which shall identify by name and title
and bear the signature of the officers of the Borrower and such Obligors
so authorized
, upon which certificate each Lender may conclusively rely until it shall
have received a further certificate of the Secretary or Assistant Secretary of
the Borrower or such other Obligor canceling or amending such prior certificate.
SECTION 5.3. Delivery of PIK Notes. The Agent shall have received the PIK
Notes for the account of each Lender, duly executed and delivered by the
Borrower.
SECTION 5.4. Agreement. The Agent shall have received duly executed copies
of this Agreement.
SECTION 5.5. Senior Secured Credit Agreement and Related Documents;
Intercreditor Agreement. The Agent shall have received duly executed copies of
the Senior Secured Credit Agreement, together with the Loan Documents (as
defined therein) and the borrower thereunder shall have issued the Notes (as
defined in the Senior Secured Credit Agreement). The Agent shall have received
duly executed copies of the Intercreditor Agreement.
SECTION 5.6. Security Agreements. The Agent shall have received executed
counterparts of each of the Trademark Security Agreement and the Security
Agreements, duly executed by an Authorized Officer of the applicable party,
together with:
(a) acknowledgment copies of properly filed UCC financing statements
(Form UCC-1), dated a date reasonably near the Effective Date, or such
other evidence of filing as may be acceptable to the Agent, naming the
Borrower, MUSA, MVI and such other Persons as the Agent may deem
appropriate as the debtors and the Agent as the secured party, or other
similar instruments or documents filed under the Uniform Commercial Code
of all jurisdictions as may be necessary or, in the opinion of the Agent,
desirable to perfect the security interest of the Agent pursuant to the
applicable Security Agreement;
(b) executed copies of proper Form UCC-3 termination statements, if
any, necessary to release all Liens and other rights of any Person in any
collateral described in any Security Agreement previously granted by any
Person, together with such other Form UCC-3 termination statements as the
Agent may reasonably request from such Obligors; and
23
(c) certified copies of Uniform Commercial Code Requests for
Information or Copies (Form UCC-11), or a similar search report certified
by a party acceptable to the Agent, dated a date reasonably near the
Effective Date, listing all effective financing statements that name the
Borrower, MVI, MUSA and such other Persons as the Agent may deem
appropriate (under either their present name or any previous names) as the
debtor and that are filed in the jurisdictions in which filings were made
pursuant to clause (a) above, together with copies of such financing
statements (none of which (other than those described in clause (a), if
such Form UCC-11 or search report, as the case may be, is current enough
to list such financing statements described in clause (a)) shall cover any
collateral described in any Security Agreement).
(d) such other approvals, opinions or documents as the Agent may
reasonably request.
SECTION 5.7. Guaranties. The Agent shall have received executed copies of
each of the Guaranties.
SECTION 5.8. Pledge Agreements. The Agent shall have received executed
copies of each of the Pledge Agreements, together with the certificates
evidencing all of the issued and outstanding Equity Interests pursuant to the
applicable Pledge Agreement, which certificates shall in each case be
accompanied by undated stock powers duly executed in blank, or, if any
securities pledged pursuant to a Pledge Agreement are uncertificated securities,
confirmation and evidence satisfactory to the Agent that the security interest
in such uncertificated securities has been transferred to and perfected by the
Agent for the benefit of the Lenders in accordance with Section 8-313 and
Section 8-321 of the UCC; provided, that the Borrower shall use its reasonable
best efforts to obtain any consents required to pledge any securities but shall
not be required to pledge any such securities to the extent that the Borrower is
unable to obtain such consents.
SECTION 5.9. Opinion of Counsel. The Agent shall have received an opinion
dated the Effective Date and addressed to the Agent and all Lenders, from
Xxxxxxx Xxxx & Xxxxx LLP, counsel to the Borrower and the other Obligors,
substantially in the form of Exhibit C hereto.
SECTION 5.10. Consolidated Financial Statements. The Agent shall have
received (i) copies of the audited consolidated balance sheets of the Borrower
(f/k/a Metrocall, Inc.), representing the balance sheet of the Borrower and its
Subsidiaries as of December 31, 2000 and 2001, and the related consolidated
statements of operation, comprehensive income and changes in combined equity and
consolidated statements of cash flows for each of the three (3) years preceding
the period ended December 31, 2001 and (ii) the unaudited interim consolidated
financial statements of the Borrower and its Subsidiaries for each quarterly
period ended subsequent to the date of the latest financial statements delivered
pursuant to clause (i) of this Section 5.10 as to which such financial
statements are available. Such financial statements shall be based prepared in
accordance with GAAP and shall fairly present the financial condition of the
Borrower and its Subsidiaries.
SECTION 5.11. Plan of Reorganization; Confirmation. All conditions
precedent to the effectiveness of the Plan of Reorganization shall have been
satisfied and the terms and conditions
24
of the Plan of Reorganization shall not have been amended or modified without
the approval of the Agent and the Lenders, such consent not to be unreasonably
withheld or delayed. The Bankruptcy Court shall have entered the Confirmation
Order in form and substance satisfactory to the Agent and the Lenders, and such
Confirmation Order (a) shall confirm the Plan of Reorganization, and (b) shall
have become a Final Order.
SECTION 5.12. Implementation of the Plan of Reorganization. In accordance
with the terms of the Plan of Reorganization and simultaneously with the
effectiveness of this Agreement (except as provided for or allowed in the Plan
of Reorganization or with respect to the issuance of Equity Interests, which
shall be issued as soon as soon as practicable but in no event more than thirty
(30) days after the date hereof), (a) the Borrower shall have issued the
appropriate Equity Interests to all holders of "Class 2 Secured Lender Claims"
(as defined in the Plan of Reorganization), including a pro rata share of (i)
the Notes, (ii) 5,300,000 shares of New Preferred Stock (as defined in the Plan
of Reorganization) representing $53,000,000 of the total $60,000,000 Initial
Liquidation Preference (as defined in the Plan of Reorganization) and (iii)
420,000 shares of New Common Stock (as defined in the Plan of Reorganization,
and subject to ratable dilution as for provided for therein); (b) the Borrower
shall have issued Equity Interests to all holders of "Class 4 Allowed General
Unsecured Claims" (as defined in the Plan of Reorganization), including a pro
rata share of (i) 500,000 shares of New Preferred Stock, representing $5,000,000
of the total $60,000,000 Initial Liquidation Preference and (ii) 580,000 shares
of New Common Stock (subject to ratable dilution as provided for in the Plan of
Reorganization); (c) the applicable Reorganized Debtors (as defined in the Plan
of Reorganization) shall have distributed cash to all holders of "Class 1
Priority Claims" and "Class 4 Subsidiary General Unsecured Claims" (each as
defined in the Plan of Reorganization) who elect to receive cash, to the extent
such amounts are due and owing as of the Effective Date; and (d) the Borrower
shall have distributed cash in an amount equal to 40% of "Allowed Convenience
Claims" (as defined in the Plan of Reorganization) to all holders of such
Convenience Claims.
SECTION 5.13. Certificate as to Confirmation Order. The Agent shall have
received a certificate of the Secretary or Assistant Secretary of the Borrower,
dated as of the Effective Date, certifying (a) that attached thereto is a true,
correct and complete copy of the Confirmation Order (including the Plan of
Reorganization attached to such Confirmation Order) and (b) that no pending
appeal or motion for rehearing has been filed or granted in connection with such
Confirmation Order.
SECTION 5.14. Post-Confirmation Order Structure. The capital structure,
organization structure, management team and Organic Documents of each of the
Metrocall Entities shall be, as of the Effective Date, in accordance with the
terms of the Plan of Reorganization.
SECTION 5.15. License Agreement. The Agent shall have received a fully
executed copy of the License Agreement, certified by the Borrower as being true,
correct and complete.
SECTION 5.16. Priority; Security Interests. All Property of the Borrower
and each other Obligor shall be free and clear of all Liens, except Permitted
Liens. All filings, notices, recordings and other actions necessary to perfect
the Liens in the Collateral shall have been
25
made, given or accomplished or arrangements for the completion thereof
satisfactory to the Agent and its counsel shall have been made.
SECTION 5.17. Insurance. The Agent and the Lenders shall have received a
certificate, executed by an Authorized Officer of the Borrower, (a) describing
in detail all insurance maintained by, or on behalf of, the Borrower and the
other Obligors on their property and their business as of the Effective Date and
(b) certifying that such insurance is in full force and effect.
SECTION 5.18. Certificate. The Agent shall have received a certificate of
an Authorized Officer of the Borrower stating that:
(a) all representations and warranties contained in Article V are
true and correct as of the Effective Date and that no Default or Event of
Default exists; and
(b) as of the Effective Date, there exists no action, suit,
proceeding or investigation pending against or, to the knowledge of the
Borrower, threatened against or in any manner relating adversely to the
Borrower or the other Obligors, or any of their respective Property, which
could be expected to have a Materially Adverse Effect.
SECTION 5.19. Expenses, etc. The Agent shall have received for its own
account, or for the account of each Lender, as the case may be, all fees, costs
and expenses due and payable pursuant to Section10.3, if then invoiced.
SECTION 5.20. Intercompany Services Agreement. The Agent shall have
received a fully executed copy of the Intercompany Services Agreement, certified
by the Borrower as being true, correct and complete.
SECTION 5.21. Tax Sharing Agreement. The Agent shall have received a fully
executed copy of the Tax Sharing Agreement, certified by the Borrower as being
true, correct and complete.
SECTION 5.22. New MVI Security Documents. The Agent shall have received
fully executed copies of each New MVI Security Document, each certified by the
Borrower as being true, correct and complete.
SECTION 5.23. Satisfactory Legal Form. All documents executed or submitted
pursuant hereto by or on behalf of the Borrower or any other Obligors, or
otherwise submitted to or received by the Agent, in each case pursuant to this
Article V, shall be satisfactory in form and substance to the Agent, and the
Agent and its counsel shall have received all information, approvals, opinions,
documents or instruments as the Agent or its counsel may reasonably request.
SECTION 5.24. Other Documents. The Agent shall have received such other
certificates, reports, statements or other documents as the Agent or any Lender
may reasonably request.
26
ARTICLE VI
REPRESENTATIONS AND WARRANTIES
In order to induce the Lenders and the Agent to enter into this Agreement
and to make Loans hereunder, the Borrower represents and warrants unto the Agent
and each Lender as set forth in this Article VI.
SECTION 6.1. Organization; Power; Qualification. Each Obligor is duly
organized or formed, validly existing and in good standing under the Laws of the
jurisdiction of its incorporation or organization. Each Obligor has the
corporate, partnership, limited liability company or other power and authority
to own its properties and to carry on its business as now being and as proposed
hereafter to be conducted. Each Obligor is duly qualified, in good standing and
authorized to do business in each jurisdiction in which the character of its
respective properties or the nature of its respective businesses requires such
qualification or authorization.
SECTION 6.2. Authorization; Enforceability. Each Obligor has the requisite
power and has taken all necessary corporate action to authorize it to execute,
deliver and perform the Loan Documents to which it is a party in accordance with
their respective terms, and to consummate the transactions contemplated hereby
and thereby. The execution and delivery by each Obligor of the Loan Documents to
which it is a party and the performance of its obligations thereunder have been
duly authorized by proper proceedings, and the Loan Documents to which each of
the Obligors is a party constitutes the legal, valid and binding obligation of
such parties, enforceable against such parties in accordance with their terms,
except as enforceability may be limited by bankruptcy, insolvency, liquidation,
reorganization or similar laws affecting the enforcement of creditors' rights
generally and subject to general principles of equity, regardless of whether
considered in a proceeding in equity or at law.
SECTION 6.3. Non-Contravention, etc. The execution, delivery and
performance of the Loan Documents by each of the Obligors are within each
Obligor's powers, have been duly authorized by all necessary action, and do not
and will not (a) contravene any Obligor's Organic Documents or Material
Agreement of such party, including the Licenses to which MUSA is a party or by
which it or its Property may be bound; (b) contravene any Law binding on or
affecting any such Obligor; or (c) result in, or require the creation or
imposition of, any Lien on the Property of any Obligor, except for Permitted
Liens.
SECTION 6.4. Governmental Regulation. Neither the Borrower nor any other
Obligor is required to obtain any consent, approval, authorization, permit or
license that has not already been obtained from, or effect any filing or
registration that has not already been effected with, any federal, state or
local regulatory authority in connection with the execution and delivery, or the
performance, in accordance with their respective terms, of this Agreement or any
other Loan Document.
SECTION 6.5. Business. The Borrower is, through its Subsidiaries, engaged
solely in the business of owning, constructing, managing and operating paging
service systems and
27
communications businesses incidental or directly relating thereto, including the
resale of narrowband and broadband one- and two-way communications systems.
SECTION 6.6. Licenses, etc. All Licenses have been duly issued, are in
full force and effect and, as of the Effective Date, are held by MUSA as set
forth in Item 6.6 ("Licenses") of the Disclosure Schedule. MUSA is in compliance
in all material respects with all of the provisions thereof, and has secured all
Necessary Authorizations and all such Necessary Authorizations are in full force
and effect. Neither any License nor any Necessary Authorization is the subject
of any pending or, to the best of the Borrower's knowledge, threatened
revocation. The sole assets of MUSA are Licenses used in the operation and
construction of the paging business of the Borrower and its Subsidiaries and
management agreements with Holdings and such other Subsidiaries as operate the
portion of the paging system subject to the License held by it.
SECTION 6.7. Compliance with Law. The Borrower and each other Obligor are
in compliance in all material respects with all Applicable Laws.
SECTION 6.8. Title to Assets; Real Property. The Borrower and each other
Obligor have good, legal and marketable title to, or a valid leasehold interest
in, all of its property of any nature whatsoever (including patents, trademarks,
trade names, service marks and copyrights), free and clear of all Liens, charges
or claims (including infringement claims with respect to patents, trademarks,
copyrights and the like) except for Permitted Liens. Neither the Borrower nor
any other Obligor owns any real property.
SECTION 6.9. Financing Statements. Except for financing statements
evidencing Permitted Liens, no financing statement under the Uniform Commercial
Code as in effect in any jurisdiction and no other filing that names any of the
Obligors as debtor or that covers or purports to cover any of the assets of any
of the Obligors is currently effective and on file in any state or other
jurisdiction, and none of the Obligors has signed any such financing statement
or filing or any security agreement authorizing any secured party thereunder to
file any such financing statement or filing.
SECTION 6.10. Litigation. There is no action, suit, proceeding or
investigation pending against, or, to the best of the Borrower's knowledge,
threatened against or in any other manner relating adversely to, the Borrower or
any of the other Obligors or any of their respective properties, including the
Licenses, in any court or before any arbitrator of any kind or before or by any
Governmental Authority (including the FCC) except as set forth in Item 6.10
("Litigation") of the Disclosure Schedule. No such action, suit, proceeding or
investigation (a) calls into question the validity of this Agreement or any
other Loan Document, or (b) individually or collectively involves the
possibility of any judgment or liability not fully covered by insurance which,
if determined adversely to the Borrower or any of the other Obligors, would have
a Materially Adverse Effect.
SECTION 6.11. Taxes. Except as set forth in Item 6.11 ("Taxes") of the
Disclosure Schedule, all federal, state and other tax returns of the Borrower
and each other Obligor required by law to be filed have been duly filed; all
federal, state and other taxes, including withholding taxes, assessments and
other governmental charges or levies required to be paid by the Borrower
28
or by any other Obligor or imposed upon the Borrower or any other Obligor or any
of their respective properties, income, profits or assets, that are due and
payable, have been paid, except any such taxes (i) (x) the payment of which the
Borrower or such other Obligors are diligently contesting in good faith by
appropriate proceedings, (y) for which adequate reserves have been provided on
the books of the Borrower or such other Obligor involved, and (z) as to which no
Lien other than a Permitted Lien has attached and no foreclosure, distraint,
sale or similar proceedings have been commenced, or (ii) which may result from
audits not yet conducted. The charges, accruals and reserves on the books of the
Borrower and each other Obligor with respect to taxes are adequate.
SECTION 6.12. Financial Statements. The financial statements furnished to
the Agent pursuant to Section 5.10, together with other financial statements, if
any, furnished to the Lenders from time to time subsequent to the Effective
Date, have been prepared in accordance with GAAP and present fairly in all
material respects the financial position of the Borrower and its Subsidiaries on
a consolidated basis, on and as at such dates and the results of operations for
the periods then ended (subject, in the case of unaudited financial statements,
to year-end audit adjustments and the absence of footnotes). Neither the
Borrower nor any of the other Obligors has any material liabilities, contingent
or otherwise, other than as disclosed in the financial statements referred to in
the preceding sentence or as set forth or referred to in this Agreement, and
there are no material unrealized losses of the Borrower or any of the other
Obligors, and no material anticipated losses of the Borrower or any of the other
Obligors other than those that have been previously disclosed in writing to the
Agent and the Lenders and identified as such.
SECTION 6.13. No Material Adverse Effect. Since June 30, 2002, there has
occurred no event that has had, or that could reasonably be expected to have, a
Materially Adverse Effect.
SECTION 6.14. ERISA. The Borrower and each other Obligor, and each of
their respective Plans, are in compliance with ERISA and the Code; neither the
Borrower nor any of its ERISA Affiliates, including any of its Subsidiaries, has
incurred any accumulated funding deficiency with respect to any such Plan within
the meaning of ERISA or the Code. The Borrower and its Subsidiaries, and each
other ERISA Affiliate, have complied with all requirements of COBRA. Neither the
Borrower nor any of its Subsidiaries has made any promises of retirement or
other benefits to employees, except as set forth in the Plans, in written
agreements with such employees, or in the Borrower's or any of its Subsidiary's
employee handbook and memoranda to employees. Neither the Borrower nor any of
its ERISA Affiliates, including any of its Subsidiaries, has incurred any
material liability to PBGC in connection with any such Plan. The assets of each
such Plan which is subject to Title IV of ERISA are sufficient to provide the
benefits under such Plan, the payment of which PBGC would guarantee if such Plan
were terminated, and such assets are also sufficient to provide all other
"benefit liabilities" (within the meaning of Section 4041 of ERISA) due under
the Plan upon termination. No Reportable Event has occurred and is continuing
with respect to any such Plan. No such Plan or trust created thereunder, or
party in interest (as defined in Section 3(14) of ERISA), or any fiduciary (as
defined in Section 3(21) of ERISA), has engaged in a "prohibited transaction"
(as such term is defined in Section 406 of ERISA or Section 4975 of the Code)
which would subject such Plan or any other Plan of Holdings or of any
Subsidiary, any trust created thereunder, or any such party in interest or
fiduciary, or any party dealing with any such Plan or any such trust, to the tax
or penalty on "prohibited transactions" imposed by Section 502 of ERISA or
Section
29
4975 of the Code. Neither the Borrower nor any of its ERISA Affiliates,
including any Subsidiaries, is or has been obligated to make any payment to a
Multiemployer Plan.
SECTION 6.15. Compliance with Regulations T, U and X. Neither the Borrower
nor any other Obligor is engaged principally in, or has as one of its important
activities the business of, extending credit for the purpose of purchasing or
carrying, and neither the Borrower nor any other Obligor owns or currently
intends to acquire, any "margin security" or "margin stock" as defined in
Regulations T, U and X (12 C.F.R. Parts 207, 220, 221 and 224) of the F.R.S.
Board (herein called "margin stock"). None of the proceeds of the Loans will be
used, directly or indirectly, for the purpose of purchasing or carrying any
margin stock or for the purpose of reducing or retiring any Indebtedness that
was originally incurred to purchase or carry margin stock or for any other
purpose that might constitute this transaction a "purpose credit" within the
meaning of said Regulations T, U and X. The Borrower has not taken, caused or
authorized to be taken, and will not take any action, which might cause this
Agreement or the PIK Notes to violate Regulation T, U or X or any other
regulation of the F.R.S. Board or to violate the Exchange Act, in each case as
now in effect or as the same may hereafter be in effect. If so requested by the
Agent, the Borrower shall furnish the Agent with (a) a statement or statements
in conformity with the requirements of Federal Reserve Forms G-3 and/or U-1
referred to in Regulation U of the F.R.S. Board and (b) other documents
evidencing its compliance with the margin regulations, reasonably requested by
the Agent. Neither the making of the Loans nor the use of proceeds thereof will
violate, or be inconsistent with, the revisions of Regulations T, U or X of the
F.R.S. Board.
SECTION 6.16. Investment Company Act. Neither the Borrower nor any other
Obligor is an "investment company" or a company "controlled" by an "investment
company" within the meaning of the Investment Company Act of 1940, as amended.
Neither the entering into or performance by the Borrower or any other Obligor of
this Agreement and the Loan Documents, nor the issuance of the PIK Notes,
violates any provision of such Act or requires any consent, approval or
authorization of, or registration with, the Securities and Exchange Commission
or any other governmental or public body or authority pursuant to any provisions
of such Act.
SECTION 6.17. Public Utility Holding Company Act. Neither the Borrower nor
any other Obligor is subject to, or is exempt from, regulation as a "holding
company" or a "subsidiary company" of a "holding company," in each case as such
terms are defined in the Public Utility Holding Company Act of 1935, as amended
and the rules and regulations thereunder.
SECTION 6.18. Absence of Default, etc. The Borrower and each other Obligor
are in compliance in all respects with all of the provisions of their respective
Organic Documents, and no event has occurred or failed to occur (including any
matter that could create a Default hereunder by cross-default) which has not
been remedied or waived, which constitutes, (i) a Default or (ii) a material
default by the Borrower or any other Obligor, or an event or condition giving
rise to any put right or other prepayment right of any holder of Indebtedness,
under any indenture, agreement or other instrument relating to Indebtedness of
the Borrower or any other Obligor, or a default under any License (which Default
could reasonably be expected to result in an Event of Default under Section
8.1.5 hereof), or a default under any judgment, decree or order
30
to which the Borrower or any other Obligor is a party or by which the Borrower
or any other Obligor or any of their respective properties may be bound or
affected. Neither the Borrower nor any other Obligor is a party to, or bound by,
any contract or agreement continuing after the Effective Date, or bound by any
Applicable Law, the performance of which or the compliance with which, as
applicable, could have a Materially Adverse Effect or result in the loss of any
License issued by the FCC.
SECTION 6.19. Agreements with Affiliates. Except for agreements or
arrangements with Affiliates wherein the Borrower or one or more of its
Subsidiaries provides services to such Affiliates for fair consideration and
which are set forth in Item 6.19 of the Disclosure Schedule ("Agreements with
Affiliates"), neither the Borrower, any other Obligor nor any of their
Subsidiaries has (a) any agreements or arrangements of any kind with any
Affiliate or (b) any management or consulting agreements of any kind with any
Affiliate.
SECTION 6.20. Priority. The Security Interest is a valid and perfected
security interest in the Collateral in favor of the Agent, for the benefit of
itself and the Lenders (second in priority only to the first priority security
interest in the Collateral in favor of the Agent granted pursuant to the Senior
Secured Credit Agreement and the instruments and agreements executed pursuant
thereto (excepting this Agreement and the instruments and agreements executed
pursuant hereto), securing the Obligations in accordance with the terms of the
Security Documents, and the Collateral is subject to no Liens other than
Permitted Liens. The Liens created by the Security Documents are enforceable as
security for the Obligations in accordance with their terms with respect to the
Collateral subject, as to enforcement of remedies, to the following
qualifications: (i) an order of specific performance and an injunction are
discretionary remedies and, in particular, may not be available where damages
are considered an adequate remedy at law, and (ii) enforcement may be limited by
bankruptcy, insolvency, liquidation, reorganization, reconstruction and other
similar laws affecting enforcement of creditors' rights generally (insofar as
any such law relates to the bankruptcy, insolvency or similar event of the
Borrower or any other Obligor, as the case may be).
SECTION 6.21. Indebtedness for Money Borrowed. Except as set forth in Item
6.21 ("Allowed Indebtedness for Money Borrowed") of the Disclosure Schedule with
respect to Indebtedness as allowed under the Plan of Reorganization, neither the
Borrower nor any other Obligor has outstanding, as of the Effective Date, any
Indebtedness for Money Borrowed.
SECTION 6.22. Solvency. As of the Effective Date and after giving effect
to the transactions contemplated by the Loan Documents, (i) the Property of the
Borrower and the other Obligors, at a fair valuation, will exceed the aggregate
debt of the Borrower and the other Obligors; (ii) the capital of the Borrower
will not be unreasonably small to conduct its business; (iii) the Borrower will
not have incurred debts, or have intended to incur debts, beyond its ability to
pay such debts as they mature; and (iv) the present fair salable value of the
assets of the Borrower will be materially greater than the amount that will be
required to pay its probable liabilities (including debts) as they become
absolute and matured. For purposes of this Section 6.22, "debt" means any
liability on a claim, and "claim" means (i) the right to payment, whether or not
such right is reduced to judgment, liquidated, unliquidated, fixed, contingent,
matured, unmatured, undisputed, legal, equitable, secured or unsecured, or (ii)
the right to an equitable remedy for breach of performance if such breach gives
rise to a right to payment, whether or not
31
such right to an equitable remedy is reduced to judgment, fixed, contingent,
matured, unmatured, undisputed, secured or unsecured.
SECTION 6.23. Patents, Trademarks etc. The Borrower and each other Obligor
owns, possesses (or has the right to use) all licenses and rights to all
patents, trademarks, trademark rights, trade names, trade name rights, service
marks, and copyrights, and rights with respect thereto, necessary to conduct its
business in all material respects as now conducted, without known conflict with
any patent, trademark, trade name, service xxxx, license or copyright of any
other Person, and in each case, with respect to patents, trademarks, trademark
rights, trade names, trade names, copyrights and licenses with respect thereto
owned by the Borrower or any other Obligor, subject to no mortgage, pledge,
lien, lease, encumbrance, charge, security interest, title retention agreement
or option (other than as created by the Loan Documents). All such licenses and
rights with respect to patents, trademarks, trademark rights, trade names, trade
name rights, service marks and copyrights are in full force and effect, and to
the extent applicable, the Borrower and each other Obligor are in full
compliance in all material respects with all of the provisions thereof. No such
patent, trademark, trademark rights, trade names, trade name rights, service
marks, copyrights or licenses is subject to any pending or, to the best of the
Borrower's knowledge, threatened attack or revocation. Neither the Borrower nor
any other Obligor owns any registered copyrights or patents and the business of
neither the Borrower nor that of any other Obligor is subject to any license
(other than general business licenses and permits).
SECTION 6.24. Subsidiaries. The Borrower has no Subsidiaries except those
Subsidiaries that are identified in Item 6.24 ("Existing Subsidiaries") of the
Disclosure Schedule.
SECTION 6.25. Environmental Warranties. Except as set forth in Item 6.25
("Environmental Matters") of the Disclosure Schedule: (a) all facilities and
Property (including underlying groundwater) owned or leased by the Borrower,
each other Obligor and each of their Subsidiaries have been, and continue to be,
owned or leased by the Borrower, each other Obligor or such Subsidiary in
material compliance with all Environmental Laws; (b) there have been no past,
and there are no pending or threatened (i) claims, complaints, notices or
requests for information received by the Borrower, each other Obligor or any of
their respective Subsidiaries with respect to any alleged violation of any
Environmental Law, or (ii) complaints, notices or inquiries to the Borrower,
each other Obligor or any of their respective Subsidiaries regarding potential
liability under any Environmental Law; (c) there have been no Releases of
Hazardous Materials at, on or under any Property now or previously owned or
leased by the Borrower, each other Obligor or any of their respective
Subsidiaries that, singly or in the aggregate, have, or may reasonably be
expected to have, a Materially Adverse Effect; (d) the Borrower, each other
Obligor and each of their Subsidiaries have been issued and are in material
compliance with all permits, certificates, approvals, licenses and other
authorizations relating to environmental matters and necessary or desirable for
their businesses; (e) no Property now or previously owned or leased by the
Borrower, any other Obligor or any of their respective Subsidiaries is listed or
proposed for listing (with respect to owned Property only) on the National
Priorities List pursuant to CERCLA, on the CERCLIS or on any similar state list
of sites requiring investigation or clean-up; (f) there are no underground
storage tanks, active or abandoned, including petroleum storage tanks, on or
under any Property now or previously owned or leased by the Borrower, each other
Obligor or any of their respective Subsidiaries that, singly or in the
aggregate, have, or could reasonably be expected to have a Materially Adverse
Effect; (g) neither
32
the Borrower nor any other Obligor, nor any of their respective Subsidiaries,
has directly transported or directly arranged for the transportation of any
Hazardous Material to any location which is listed or proposed for listing on
the National Priorities List pursuant to CERCLA, on the CERCLIS or on any
similar state list or which is the subject of federal, state or local
enforcement actions or other investigations which may lead to material claims
against the Borrower or any other such Obligor or Subsidiary for any remedial
work, damage to natural resources or personal injury, including claims under
CERCLA; (h) there are no polychlorinated biphenyls or friable asbestos present
at any Property now or previously owned or leased by the Borrower or any other
Obligor, or any of their respective Subsidiaries that, singly or in the
aggregate, have, or could reasonably be expected to have, a Materially Adverse
Effect; and (i) no conditions exist at, on or under any Property now or
previously owned or leased by the Borrower or any other Obligor, or any of their
respective Subsidiaries that, with the passage of time, or the giving of notice
or both, would give rise to liability under any Environmental Law.
SECTION 6.26. Pension and Welfare Plans. During the
twelve-consecutive-month period prior to the Effective Date, no steps have been
taken to terminate any Pension Plan, and no contribution failure has occurred
with respect to any Pension Plan sufficient to give rise to a Lien under Section
302(f) of ERISA. No condition exists or event or transaction has occurred with
respect to any Pension Plan which might result in the incurrence by the Borrower
or any member of the Controlled Group of any material liability, fine or
penalty. Except as disclosed in Item 6.26 ("Employee Benefit Plans") of the
Disclosure Schedule, neither the Borrower nor any member of the Controlled Group
has any contingent liability with respect to any post-retirement health benefit
under a Welfare Plan, other than liability for continuation coverage described
in Part 6 of Title I of ERISA.
SECTION 6.27. Payment of Wages. The Borrower and each other Obligor are in
compliance with the Fair Labor Standards Act, as amended, in all material
respects, and such Persons have paid all minimum and overtime wages required by
law to be paid to their respective employees.
SECTION 6.28. Accuracy of Information. Each of the Borrower and OPCO has
disclosed to the Agent and the Lenders all agreements, instruments and corporate
or other restrictions to which it or any of its respective Subsidiaries is
subject, and all other matters known to it, that, individually or in the
aggregate, could reasonably be expected to result in a Materially Adverse
Effect. All factual information heretofore or contemporaneously furnished by or
on behalf of the Borrower or any other Obligor in writing to the Agent or any
Lender for purposes of, or in connection with, this Agreement or any transaction
contemplated hereby (including the Plan of Reorganization, true and complete
copies of which have been furnished to the Agent and each Lender in connection
with its execution and delivery hereof) is, and all other such factual
information hereafter furnished by or on behalf of the Borrower and any other
Obligor to the Agent or any Lender will be, true and accurate in every material
respect on the date as of which such information is dated or certified and as of
the date of execution and delivery of this Agreement by the Agent and such
Lender, and such information is not, or shall not be, as the case may be,
incomplete by omitting to state any material fact necessary to make such
information not misleading.
33
All representations and warranties made under this Agreement or any other Loan
Document shall be deemed to be made, and shall be true and correct, at and as of
the Effective Date. All representations and warranties made under this Agreement
and the other Loan Documents shall survive, and not be waived by, the execution
hereof by the Lenders and the Agent or any investigation or inquiry by any
Lender or the Agent.
ARTICLE VII
COVENANTS
SECTION 7.1. Affirmative Covenants. The Borrower agrees with the Agent and
each Lender that, until all Obligations have been paid and performed in full,
the Borrower will perform the obligations set forth in this Section 7.1.
SECTION 7.1.1. Formation of Subsidiaries. At the time of the
formation of any new Subsidiary of Holdings or the Borrower or any other
Obligor, the Borrower will cause such Subsidiary to (a) provide to the Agent (i)
an executed Subsidiary Security Agreement for such new Subsidiary, in
substantially the form of Exhibit F-2 attached hereto, together with appropriate
UCC-1 financing statements, (ii) an executed Subsidiary Guaranty for such new
Subsidiary, (iii) to the extent applicable, an executed Pledge Agreement for
such new Subsidiary and (iv) to the extent applicable, a Trademark Security
Agreement, together with other appropriate documentation, as well as a
subsidiary loan certificate for such new Subsidiary substantially in the form of
Exhibit I attached hereto, together with appropriate attachments; (b) pledge to
the Agent all of the Equity Interests of such newly-formed Subsidiary that are
beneficially owned by the Borrower or such other Obligor, as the case may be, as
additional Collateral for the Obligations, to be held by the Agent in accordance
with the terms of a Pledge Agreement substantially in the form of Exhibit G
attached hereto, and execute and deliver to the Agent all such other
documentation for such pledge as, in the opinion of the Agent, is appropriate;
and (c) provide revised financial projections for the remainder of the fiscal
year and for each subsequent year until the Stated Maturity Date, which reflect
such formation, certified by the CFO, together with a statement by the CFO that
no Default exists or would be caused by such formation, and all other
documentation, including one or more opinions of counsel, which are satisfactory
to the Agent and which in its opinion is appropriate with respect to the
formation of such Subsidiary. Any document, agreement or instrument executed or
issued pursuant to this Section 7.1.1 shall constitute both a "Loan Document"
and a "Security Document" for purposes of this Agreement.
SECTION 7.1.2. Further Assurances. The Borrower will, and will cause
each other Obligor to, cure promptly any defects in the creation or issuance of
the PIK Notes or the execution and delivery of any Loan Document, including this
Agreement. The Borrower, at its expense, will, and will cause each other Obligor
to, promptly execute and deliver to the Agent upon request all such other and
further documents, agreements, instruments, notices or releases as may be
necessary or appropriate in the reasonable judgment of the Agent to carry out
the provisions and purposes of this Agreement and the other Loan Documents.
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SECTION 7.2. Negative Covenants. The Borrower agrees with the Agent and
each Lender that, until all Obligations have been paid and performed in full,
the Borrower will perform the obligations set forth in this Section 7.2.
SECTION 7.2.1. Financial Condition. The Borrower will not permit,
and will not allow any other Obligor to permit, as of any date:
(a) the Total Net Debt to Annualized Operating Cash Flow Ratio to be
greater than 1.0:1.0; or
(b) the Operating Cash Flow to Net Cash Interest Expense Ratio to be
less than or equal to 2.0:1.0.
SECTION 7.2.2. System Capital Expenditures. The Borrower will not
permit Capital Expenditures other than Capital Expenditures for one- and two-way
paging devices, except such Capital Expenditures that do not in the aggregate
exceed the amount set forth below opposite such Fiscal Quarter, and as of the
last day of such Fiscal Quarter:
XXXXXX XXXXXXX XXXXXX XXXXXX
XX0-0000 10/01/02-12/31/02 $ 3,600,000
FQ1-2003 10/01/02-03/31/03 $ 6,600,000
FQ2-2003 10/01/02-06/30/03 $ 9,600,000
FQ3-2003 10/01/02-09/30/03 $12,600,000
FQ4-2003 01/01/03-12/31/03 $12,000,000
FQ1-2004 04/01/03-03/31/04 $12,000,000
FQ2-2004 07/01/03-06/30/04 $12,000,000
FQ3-2004 10/01/03-09/30/04 $12,000,000
FQ4-2004 10/01/04-12/31/04 $12,000,000
SECTION 7.2.3. Device Capital Expenditures. The Borrower will not
permit Capital Expenditures for one- and two-way paging devices, except such
Capital Expenditures that do not in the aggregate exceed the amount set forth
below opposite such Fiscal Quarter, and as of the last day of such Fiscal
Quarter:
XXXXXX XXXXXXX XXXXXX XXXXXX
XX0-0000 10/01/02-12/31/02 $ 4,500,000
FQ1-2003 10/01/02-03/31/03 $ 9,700,000
FQ2-2003 10/01/02-06/30/03 $14,700,000
FQ3-2003 10/01/02-09/30/03 $19,600,000
FQ4-2003 01/01/03-12/31/03 $19,800,000
FQ1-2004 04/01/03-03/31/04 $17,700,000
FQ2-2004 07/01/03-06/30/04 $17,000,000
FQ3-2004 10/01/03-09/30/04 $16,400,000
FQ4-2004 10/01/04-12/31/04 $15,900,000
SECTION 7.2.4. Subsidiaries. The Borrower will not, and will not
allow any other Obligor to, at any time create or acquire any Subsidiary unless
the Borrower or such other
35
Obligor, as the case may be, has caused such Subsidiary to comply with the
requirements of Section 7.1.1.
ARTICLE VIII
EVENTS OF DEFAULT
SECTION 8.1. Listing of Events of Default. Each of the following events or
occurrences described in this Section 8.1 shall constitute an "Event of
Default".
SECTION 8.1.1. Non-Payment of Obligations. The failure or refusal of
the Borrower to (a) pay the principal of the Loans or any part thereof when due
in accordance with the terms of the Loan Documents or, (b) pay interest on the
Loans or any fee or other amount payable to the Agent or the Lenders under this
Agreement or any of the other Loan Documents, or any part thereof, within three
(3) Business Days after the same becomes due.
SECTION 8.1.2. Representations and Warranties. Any representation or
warranty of the Borrower or any other Obligor made or deemed to be made
hereunder or in any other Loan Document or any other report, writing, financial
statement, certificate or other document furnished by or on behalf of the
Borrower or any other Obligor to the Agent or any Lender for the purposes of, or
in connection with, this Agreement or any such other Loan Document (including
any certificates delivered pursuant to Article V) is or shall be incorrect when
made or deemed to be made in any material respect.
SECTION 8.1.3. Non-Performance of Certain Covenants and Obligations.
The Borrower shall default in the due performance and observance of any of its
obligations under Section 7.1.1 or Section 7.2.
SECTION 8.1.4. Breach of Other Covenants. The Borrower or any other
Obligor shall default in the due performance and observance of any other
covenant, condition or agreement contained herein and not referenced to in this
Section 8.1 or in any other Loan Document, and such default shall continue
unremedied for a period of thirty (30) days from the occurrence of such default.
SECTION 8.1.5. Invalidity of any Loan Document; Liens. Any Loan
Document, at any time after its execution and delivery and for any reason other
than the agreement of all the Lenders or satisfaction in full of all the
Obligations, or any Lien granted under a Loan Document (except in accordance
with its terms) ceases to be the legally valid, binding and enforceable
obligation of any Obligor party thereto; or the Borrower, any other Obligor or
any other party shall, directly or indirectly, contest in any manner such
effectiveness, validity, binding nature or enforceability; or any Lien securing
any Obligation shall, in whole or in part, cease to be a perfected first
priority Lien, subject only to those exceptions expressly permitted in such Loan
Documents.
SECTION 8.1.6. Plan of Reorganization. The Plan of Reorganization or
the Confirmation Order shall for any reason be vacated or materially modified.
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SECTION 8.1.7. Breach of License Agreement. A material breach by the
Borrower with respect to any provision of the License Agreement, which material
breach is not cured as provided for therein, or the License Agreement shall
terminate or cease to be valid, binding and enforceable, or shall be cancelled
or revoked by any party thereto.
SECTION 8.1.8. Cross-Default. A default shall occur in the payment
when due (subject to any applicable grace period), whether by acceleration or
otherwise, of any Indebtedness (other than the Obligations) of the Borrower, any
of its Subsidiaries or any other Obligor having a principal amount, individually
or in the aggregate, in excess of $5,000,000, or a default shall occur in the
performance or observance of any obligation or condition with respect to such
Indebtedness if the effect of such default is to accelerate the maturity of any
such Indebtedness or such default shall continue unremedied for any applicable
period of time sufficient to permit the holder or holders of such Indebtedness,
or any trustee or agent for such holders, to cause such Indebtedness to become
due and payable prior to its expressed maturity.
SECTION 8.1.9. Judgments. Any judgment or order for the payment of
money in excess of $500,000 shall be rendered against the Borrower or any of its
Subsidiaries or any other Obligor and either (a) enforcement proceedings shall
have been commenced by any creditor upon such judgment or order; or (b) there
shall be any period of 30 consecutive days during which a stay of enforcement of
such judgment or order, by reason of a pending appeal or otherwise, shall not be
in effect.
SECTION 8.1.10. Pension Plans. Any of the following events shall
occur with respect to any Pension Plan: (a) the institution of any steps by the
Borrower, any member of its Controlled Group or any other Person to terminate a
Pension Plan if, as a result of such termination, the Borrower or any such
member could be required to make a contribution to such Pension Plan, or could
reasonably expect to incur a liability or obligation to such Pension Plan, in
excess of $500,000; or (b) a contribution failure occurs with respect to any
Pension Plan sufficient to give rise to a Lien under Section 302(f) of ERISA.
SECTION 8.1.11. Change in Control. Any Change in Control shall occur
or exist.
SECTION 8.1.12. Bankruptcy, Insolvency, etc. The Borrower or any of
its Subsidiaries or any other Obligor or any of its Subsidiaries shall (a)
become insolvent or generally fail to pay, or admit in writing its inability or
unwillingness to pay, debts as they become due; (b) apply for, consent to, or
acquiesce in, the appointment of a trustee, receiver, sequestrator or other
custodian for the Borrower or any of its Subsidiaries or any other Obligor or
any of its Subsidiaries or any Property of any thereof, or make a general
assignment for the benefit of creditors; (c) in the absence of such application,
consent or acquiescence, permit or suffer to exist the appointment of a trustee,
receiver, sequestrator or other custodian for the Borrower or any of its
Subsidiaries or any other Obligor or any of its Subsidiaries, or for a
substantial part of the Property of any thereof, and such trustee, receiver,
sequestrator or other custodian shall not be discharged within 60 days, provided
that the Borrower, each Subsidiary and each other Obligor hereby expressly
authorizes the Agent and each Lender to appear in any court conducting any
relevant proceeding during such 60-day period to preserve, protect and defend
their rights under the Loan Documents; (d) permit or suffer to exist the
commencement of
37
any bankruptcy, reorganization, debt arrangement or other case or proceeding
under any bankruptcy or insolvency law, or any dissolution, winding up or
liquidation proceeding, in respect of the Borrower or any of its Subsidiaries or
any other Obligor or any of its Subsidiaries, and, if any such case or
proceeding is not commenced by the Borrower or such Subsidiary or such other
Obligor or a Subsidiary of such Obligor, such case or proceeding shall be
consented to or acquiesced in by the Borrower or such Subsidiary or such other
Obligor or its Subsidiary or shall result in the entry of an order for relief or
shall remain for 60 days undismissed, provided that the Borrower, each
Subsidiary and each other Obligor and its Subsidiary hereby expressly authorizes
the Agent and each Lender to appear in any court conducting any such case or
proceeding during such 60-day period to preserve, protect and defend their
rights under the Loan Documents; or (e) take any action authorizing, or in
furtherance of, any of the foregoing.
SECTION 8.1.13. [Reserved.]
SECTION 8.1.14. [Reserved.]
SECTION 8.1.15. Materially Adverse Effect. Any event or circumstance
shall occur which could reasonably be expected to have a Materially Adverse
Effect.
SECTION 8.1.16. Order of Revocation. The FCC shall deliver to the
Borrower or any of its Subsidiaries an order to show cause why an order of
revocation should not be issued based upon any alleged attribution of "alien
ownership" (within the meaning of 47 U.S.C. Section 310(b) and any
interpretation of the FCC thereunder) to the Borrower or any of its Subsidiaries
and (a) the Borrower shall fail to respond thereto in accordance with such order
and Applicable Law within thirty (30) days after such delivery (or such shorter
period specified by such order or Applicable Law) or (b) such order shall not
have been rescinded within one hundred eighty (180) days after such delivery.
SECTION 8.1.17. Termination or Revocation of Licenses; Etc. One or
more Licenses shall be terminated or revoked or substantially adversely modified
such that the Borrower and its Subsidiaries are no longer able to operate the
related paging system or portions thereof and retain the revenue received
therefrom, if any, or any such License shall fail to be renewed at the stated
expiration thereof such that the Borrower and its Subsidiaries are no longer
able to operate the related paging system or portions thereof and retain the
revenue received therefrom, if any, and, in either case, there shall be any loss
of revenue or forecast revenue of the Borrower or any of its Subsidiaries as a
direct or indirect result thereof.
SECTION 8.2. Action if Bankruptcy. If any Event of Default described in
clauses (a) through (d) of Section 8.1.12 shall occur with respect to the
Borrower or any other Obligor, the outstanding principal amount of all
outstanding Loans and all other Obligations shall automatically be and become
immediately due and payable, without notice or demand.
SECTION 8.3. Action if Other Event of Default. If any Event of Default
(other than any Event of Default described in clauses (a) through (d) of Section
8.1.12 with respect to the Borrower or any Subsidiary or any other Obligor)
shall occur for any reason, whether voluntary or involuntary, and be continuing,
the Agent, upon the direction of the Required Lenders, shall, by notice to the
Borrower, declare all or any portion of the outstanding principal amount of the
38
Loans and other Obligations to be due and payable, whereupon the full unpaid
amount of such Loans and other Obligations which shall be so declared due and
payable shall be and become immediately due and payable, without further notice,
demand or presentment.
ARTICLE IX
THE AGENT
SECTION 9.1. Actions. Each Lender hereby appoints TD as its Agent under
and for purposes of this Agreement, the PIK Notes and each other Loan Document.
Each Lender authorizes the Agent to act on behalf of such Lender under this
Agreement, the PIK Notes and each other Loan Document and, in the absence of
other written instructions from the Required Lenders received from time to time
by the Agent (with respect to which the Agent agrees that it will comply, except
as otherwise provided in this Section or as otherwise advised by counsel), to
exercise such powers hereunder and thereunder as are specifically delegated to
or required of the Agent by the terms hereof and thereof, together with such
powers as may be reasonably incidental thereto. Each Lender hereby indemnifies
(which indemnity shall survive any termination of this Agreement) the Agent pro
rata according to such Lender's Percentage, from and against any and all
liabilities, obligations, losses, damages, claims, costs or expenses of any kind
or nature whatsoever which may at any time be imposed on, incurred by, or
asserted against, the Agent in any way relating to or arising out of this
Agreement, the PIK Notes and any other Loan Document, including reasonable
attorneys' fees, and as to which the Agent is not reimbursed by the Borrower;
provided, however, that no Lender shall be liable for the payment of any portion
of such liabilities, obligations, losses, damages, claims, costs or expenses
which are determined by a court of competent jurisdiction in a final proceeding
to have resulted solely from the Agent's gross negligence or willful misconduct.
The Agent shall not be required to take any action hereunder, under the PIK
Notes or under any other Loan Document, or to prosecute or defend any suit in
respect of this Agreement, the PIK Notes or any other Loan Document, unless it
is indemnified hereunder to its satisfaction. If any indemnity in favor of the
Agent shall be or become, in the Agent's determination, inadequate, the Agent
may call for additional indemnification from the Lenders and cease to do the
acts indemnified against hereunder until such additional indemnity is given.
SECTION 9.2. Exculpation. Neither the Agent nor any of its directors,
officers, employees or agents shall be liable to any Lender for any action taken
or omitted to be taken by it under this Agreement or any other Loan Document, or
in connection herewith or therewith, except for its own willful misconduct or
gross negligence, nor responsible for any recitals or warranties herein or
therein, nor for the effectiveness, enforceability, validity or due execution of
this Agreement or any other Loan Document, nor for the creation, perfection or
priority of any Liens purported to be created by any of the Loan Documents, or
the validity, genuineness, enforceability, existence, value or sufficiency of
any collateral security, nor to make any inquiry respecting the performance by
the Borrower of its obligations hereunder or under any other Loan Document. Any
such inquiry which may be made by the Agent shall not obligate it to make any
further inquiry or to take any action. The Agent shall be entitled to rely upon
advice of counsel concerning legal matters and upon any notice, consent,
certificate, statement or writing which the Agent believes to be genuine and to
have been presented by a proper Person.
39
SECTION 9.3. Successor. The Agent may resign as such at any time upon at
least 30 days' prior notice to the Borrower and all Lenders. If the Agent at any
time shall resign, the Required Lenders may appoint another Lender as a
successor Agent which shall thereupon become the Agent hereunder. If no
successor Agent shall have been so appointed by the Required Lenders, and shall
have accepted such appointment, within 30 days after the retiring Agent's giving
notice of resignation, then the retiring Agent may, on behalf of the Lenders,
appoint a successor Agent, which shall be one of the Lenders or a commercial
banking institution organized under the laws of the U.S. (or any State thereof)
or a U.S. branch or agency of a commercial banking institution, and having a
combined capital and surplus of at least $500,000,000. Upon the acceptance of
any appointment as Agent hereunder by a successor Agent, such successor Agent
shall be entitled to receive from the retiring Agent such documents of transfer
and assignment as such successor Agent may reasonably request, and shall
thereupon succeed to and become vested with all rights, powers, privileges and
duties of the retiring Agent, and the retiring Agent shall be discharged from
its duties and obligations under this Agreement. After any retiring Agent's
resignation hereunder as the Agent, the provisions of
(a) this Article IX shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was the Agent under this
Agreement; and
(b) Section 10.3 and Section 10.4 shall continue to inure to its
benefit.
SECTION 9.4. Loans by TD. TD shall have the same rights and powers with
respect to its Loan and its PIK Note as any other Lender, and may exercise the
same as if it were not the Agent. TD and its Affiliates may accept deposits
from, lend money to, and generally engage in any kind of business with the
Borrower or any Subsidiary or Affiliate of the Borrower as if TD were not the
Agent hereunder.
SECTION 9.5. Credit Decisions. Each Lender acknowledges that it has,
independently of the Agent and each other Lender, and based on such Lender's
review of the financial information of the Borrower, this Agreement, the other
Loan Documents (the terms and provisions of which being satisfactory to such
Lender) and such other documents, information and investigations as such Lender
has deemed appropriate, made its own credit decision to enter into this
Agreement and the other Loan Documents to which it is a party. Each Lender also
acknowledges that it will, independently of the Agent and each other Lender, and
based on such other documents, information and investigations as it shall deem
appropriate at any time, continue to make its own credit decisions as to
exercising or not exercising from time to time any rights and privileges
available to it under this Agreement or any other Loan Document.
SECTION 9.6. Copies, etc. The Agent shall give prompt notice to each
Lender of each notice or request required or permitted to be given to the Agent
by the Borrower pursuant to the terms of this Agreement (unless concurrently
delivered to the Lenders by the Borrower). The Agent will distribute to each
Lender each document or instrument received for its account and copies of all
other communications received by the Agent from the Borrower for distribution to
the Lenders by the Agent in accordance with the terms of this Agreement.
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ARTICLE X
MISCELLANEOUS PROVISIONS
SECTION 10.1. Waivers, Amendments, etc. The provisions of this Agreement
and of each other Loan Document may from time to time be amended, modified or
waived, if such amendment, modification or waiver is in writing and consented to
by the Borrower and the Required Lenders; provided, however, that no such
amendment, modification or waiver may be effected that would:
(a) modify any requirement hereunder that any particular action be
taken by all the Lenders or by the Required Lenders shall be effective
unless consented to by each Lender;
(b) modify this Section 10.1, change the definition of "Required
Lenders," increase the Percentage of any Lender, release any collateral
security (except as otherwise specifically provided for in any Loan
Document), or extend the Loan Termination Date or the Stated Maturity Date
shall be made without the consent of each Lender;
(c) except for any extensions of scheduled amortization payments
(excluding final maturity), extend the due date for, or reduce the amount
of, any scheduled repayment or prepayment of principal of or interest on
any Loan (or reduce the principal amount of or rate of interest on any
Loan) without the consent of the holder of such PIK Note evidencing such
Loan; or
(d) affect adversely the interests, rights or obligations of the
Agent qua the Agent which shall be made without consent of the Agent.
No failure or delay on the part of the Agent, any Lender or the holder of the
PIK Notes in exercising any power or right under this Agreement or any other
Loan Document shall operate as a waiver thereof, nor shall any single or partial
exercise of any such power or right preclude any other or further exercise
thereof or the exercise of any other power or right. No notice to or demand on
the Borrower in any case shall entitle it to any notice or demand in similar or
other circumstances. No waiver or approval by the Agent, any Lender or the
holder of the PIK Notes under this Agreement or any other Loan Document shall,
except as may be otherwise stated in such waiver or approval, be applicable to
subsequent transactions. No waiver or approval hereunder shall require any
similar or dissimilar waiver or approval thereafter to be granted hereunder.
SECTION 10.2. Notices. All notices and other communications provided to
any party hereto under this Agreement or any other Loan Document shall be in
writing or by facsimile and addressed, delivered or transmitted to such party at
its address or facsimile number set forth below its signature hereto or set
forth in the Lender Assignment Agreement, or at such other address or facsimile
number as may be designated by such party in a notice to the other parties. Any
notice, if mailed and properly addressed with postage prepaid or if properly
addressed and
41
sent by pre-paid courier service, shall be deemed given when received; any
notice, if transmitted by facsimile, shall be deemed given when transmitted.
SECTION 10.3. Payment of Costs and Expenses. The Borrower agrees to pay on
demand all expenses of the Agent (including the reasonable fees and
out-of-pocket expenses of counsel to the Agent and of local counsel, if any, who
may be retained by counsel to the Agent) in connection with:
(a) the negotiation, preparation, execution and delivery of this
Agreement and of each other Loan Document, including schedules and
exhibits, and any amendments, waivers, consents, supplements or other
modifications to this Agreement or any other Loan Document as may from
time to time hereafter be required, whether or not the transactions
contemplated hereby are consummated, and
(b) the filing, recording, refiling or rerecording of any Security
Agreement and any UCC financing statements relating thereto, as well as
all amendments, supplements and modifications to any thereof and any and
all other documents or instruments of further assurance required to be
filed or recorded or refiled or rerecorded by the terms hereof or of such
Security Agreement, and
(c) the preparation and review of the form of any document or
instrument relevant to this Agreement or any other Loan Document.
The Borrower further agrees to pay, and to save the Agent and the Lenders
harmless from all liability for, any stamp or other taxes which may be payable
in connection with the execution or delivery of this Agreement, the borrowings
hereunder, or the issuance of the PIK Notes or any other Loan Documents. The
Borrower also agrees to reimburse the Agent and each Lender upon demand for all
reasonable out-of-pocket expenses (including attorneys' fees and legal expenses)
incurred by the Agent or such Lender in connection with (x) any restructuring or
"work-out", whether or not consummated, of the transactions contemplated in this
Agreement or the other Loan Documents, and (y) the enforcement of any
Obligations.
SECTION 10.4. Indemnification. In consideration of the execution and
delivery of this Agreement by each Lender and the extension of the Loans, the
Borrower hereby indemnifies, exonerates and holds the Agent and each Lender and
each of their respective officers, directors, employees and agents
(collectively, the "Indemnified Parties") free and harmless from and against any
and all actions, causes of action, suits, losses, costs, liabilities and
damages, and expenses incurred in connection therewith (irrespective of whether
any such Indemnified Party is a party to the action for which indemnification
hereunder is sought), including reasonable attorneys' fees and disbursements
(collectively, the "Indemnified Liabilities"), incurred by the Indemnified
Parties or any of them as a result of, or arising out of, or relating to
(a) any transaction financed or to be financed in whole or in part,
directly or indirectly, with the proceeds of any Loan;
(b) the entering into and performance of this Agreement and any
other Loan Document by any of the Indemnified Parties;
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(c) any breach or alleged breach by the Borrower or any other
Obligor of any representation or warranty made hereunder;
(d) the use of proceeds of Loans hereunder in any fashion by the
Borrower;
(e) allegation of any participation by any Indemnified Party in the
affairs of the Borrower or of any other Obligor, or allegations that any
one of them has any joint liability with the Borrower or any other Obligor
for any reason;
(f) any claims against the Agent or any Lender by any shareholder or
other investor in, or lender to the Borrower or any other Obligor by any
broker or finders or investment advisors or investment bankers retained by
the Borrower or by any other third party, arising in connection with this
Agreement;
(g) in connection with taxes (not including federal or state income
taxes or other taxes based solely upon the revenues of such Indemnified
Parties), fees and other charges payable in connection with the Loans;
(h) any investigation, litigation or proceeding related to any
acquisition or proposed acquisition by the Borrower or any of its
Subsidiaries of all or any portion of the stock or assets of any Person,
whether or not the Agent or such Lender is party thereto;
(i) any investigation, litigation or proceeding related to any
environmental cleanup, audit, compliance or other matter relating to the
protection of the environment or the Release by the Borrower or any of its
Subsidiaries of any Hazardous Material; or
(j) the presence on or under, or the escape, seepage, leakage,
spillage, discharge, emission, discharging or releases from, any real
Property owned or operated by the Borrower or any Subsidiary thereof of
any Hazardous Material (including any losses, liabilities, damages,
injuries, costs, expenses or claims asserted or arising under any
Environmental Law), regardless of whether caused by, or within the control
of, the Borrower or such Subsidiary,
except for any such Indemnified Liabilities arising for the account of a
particular Indemnified Party by reason of the relevant Indemnified Party's gross
negligence or willful misconduct. If and to the extent that the foregoing
undertaking may be unenforceable for any reason, the Borrower hereby agrees to
make the maximum contribution to the payment and satisfaction of each of the
Indemnified Liabilities which is permissible under Applicable Law.
SECTION 10.5. Reliance on and Survival of Various Provisions. All
covenants, agreements, statements, representations and warranties made herein or
in any certificate delivered pursuant hereto shall be deemed to have been relied
upon by the Agent and each of the Lenders notwithstanding any investigation
heretofore or hereafter made by any of them. The obligations of the Borrower
under Sections 4.1, 4.2, 10.3 and 10.4, and the obligations of the Lenders under
Section 9.1, shall in each case survive any termination of this Agreement, the
payment in full of all Obligations and the termination of all Loans. The
representations and warranties made or deemed to be made by each Obligor in this
Agreement and in each other
43
Loan Document shall survive the execution and delivery of this Agreement and
each such other Loan Document.
SECTION 10.6. Prior Loan Agreement. The undersigned agree and acknowledge
that, except for provisions that expressly provide for their survival of
termination, the Prior Loan Agreement is terminated, and all Commitments
thereunder (as defined in the Prior Loan Agreement) are terminated, and the
undersigned waive any right to receive any notice of such termination.
SECTION 10.7. Severability. Any provision of this Agreement or any other
Loan Document which is prohibited or unenforceable in any jurisdiction shall, as
to such provision and such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions of
this Agreement or such Loan Document or affecting the validity or enforceability
of such provision in any other jurisdiction.
SECTION 10.8. Headings. The various headings of this Agreement and of each
other Loan Document are inserted for convenience only and shall not affect the
meaning or interpretation of this Agreement or such other Loan Document or any
provisions hereof or thereof.
SECTION 10.9. Execution in Counterparts, Effectiveness, etc. This
Agreement may be executed by the parties hereto in several counterparts, each of
which shall be executed by the Borrower and the Agent and be deemed to be an
original and all of which shall constitute together but one and the same
agreement. This Agreement shall become effective when counterparts hereof
executed on behalf of the Borrower and each Lender (or notice thereof
satisfactory to the Agent) shall have been received by the Agent and notice
thereof shall have been given by the Agent to the Borrower and each Lender.
SECTION 10.10. Governing Law; Entire Agreement. THIS AGREEMENT, THE NOTES
AND EACH OTHER LOAN DOCUMENT SHALL EACH BE DEEMED TO BE A CONTRACT MADE UNDER,
AND GOVERNED BY, THE INTERNAL LAWS OF THE STATE OF NEW YORK. This Agreement, the
PIK Notes and the other Loan Documents constitute the entire understanding among
the parties hereto with respect to the subject matter hereof and supersede any
prior agreements, written or oral, with respect thereto.
SECTION 10.11. Successors and Assigns. This Agreement shall be binding
upon and shall inure to the benefit of the parties hereto and their respective
successors and assigns; provided, however, that:
(a) the Borrower may not assign or transfer its rights or
obligations hereunder without the prior written consent of the Agent and
all Lenders; and
(b) the rights of sale, assignment and transfer of the Lenders are
subject to Section 10.12.
SECTION 10.12. Sale and Transfer of Loans and PIK Notes; Participations in
Loans and PIK Note. Each Lender may assign, or sell participations in, its Loans
to one or more other Persons in accordance with this Section 10.12.
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SECTION 10.12.1. Assignments. Any Lender, with the written consent
of the Agent (which consent shall not be unreasonably withheld) may at any time
assign and delegate to any of its Affiliates, one or more commercial banks or
other financial institutions, or to any other Lender (each Person described in
the foregoing clause an "Assignee Lender"), all or any fraction of such Lender's
total Loans (which assignment and delegation shall be of a constant, and not a
varying, percentage of all the assigning Lender's Loan) in a minimum aggregate
amount of $5,000,000 (unless such assigning Lender's total Loans under this
Agreement and its total "Loans" under the Senior Secured Credit Agreement are in
the aggregate less than $5,000,000, in which case such Lender may assign and
delegate all but not less than all of such loans hereunder and thereunder);
provided, however, that (i) concurrently with any such assignment pursuant to
this Section 10.12.1, such assignor Lender shall also assign and delegate to
such Assignee Lender its pro rata share of its Loans (as defined in the Senior
Secured Credit Agreement) under the Senior Secured Credit Agreement; (ii) any
such Assignee Lender will comply, if applicable, with the provisions contained
in the first sentence of the last paragraph of Section 4.2 and (iii) that the
Borrower, each other Obligor and the Agent shall be entitled to continue to deal
solely and directly with such Lender in connection with the interests so
assigned and delegated to an Assignee Lender until
(a) written notice of such assignment and delegation, together with
payment instructions, addresses and related information with respect to
such Assignee Lender, shall have been given to the Borrower and the Agent
by such Lender and such Assignee Lender,
(b) such Assignee Lender shall have executed and delivered to the
Borrower and the Agent a Lender Assignment Agreement, accepted by the
Agent, and
(c) the processing fees described below shall have been paid.
From and after the date that the Agent accepts such Lender Assignment Agreement,
(x) the Assignee Lender thereunder shall be deemed automatically to have become
a party hereto and to the extent that rights and obligations hereunder have been
assigned and delegated to such Assignee Lender in connection with such Lender
Assignment Agreement, shall have the rights and obligations of a Lender
hereunder and under the other Loan Documents, and (y) the assignor Lender, to
the extent that rights and obligations hereunder have been assigned and
delegated by it in connection with such Lender Assignment Agreement, shall be
released from its obligations hereunder and under the other Loan Documents.
Within five Business Days after its receipt of notice that the Agent has
received an executed Lender Assignment Agreement, the Borrower shall execute and
deliver to the Agent (for delivery to the relevant Assignee Lender) a new PIK
Note evidencing such Assignee Lender's assigned Loan and, if the assignor Lender
has retained any portion of the Loan hereunder, a replacement PIK Note in the
principal amount of the portion of the Loan retained by the assignor Lender
hereunder (such PIK Note to be in exchange for, but not in payment of, that PIK
Note then held by such assignor Lender). Each such PIK Note shall be dated the
date of the predecessor PIK Note. The assignor Lender shall xxxx the predecessor
PIK Note "exchanged" and deliver it to the Borrower. Accrued interest on that
part of the predecessor PIK Note evidenced by the new PIK Note, and accrued
fees, shall be paid as provided in the Lender Assignment Agreement. Accrued
interest on that part of the predecessor PIK Note evidenced by the replacement
PIK Note shall be paid to the assignor Lender. Accrued
45
interest and accrued fees shall be paid at the same time or times provided in
the predecessor PIK Note and in this Agreement. Such assignor Lender or such
Assignee Lender must also pay a processing fee to the Agent upon delivery of any
Lender Assignment Agreement in the amount of $3,500. Any attempted assignment
and delegation not made in accordance with this Section 10.12.1 shall be null
and void.
SECTION 10.12.2. Participating Interests. Any Lender may, with the
written consent of the Agent (which consent shall not be unreasonably withheld),
at any time sell to any of its Affiliates, one or more commercial banks or other
financial institutions, or to any other Lender (each of the foregoing being a
"Participant") participating interests in any portion of its Loan or other
interests of such Lender hereunder; provided, however, that:
(a) such Lender shall concurrently sell to such Participant its pro
rata share of its Loans (as defined in the Senior Secured Credit
Agreement) under the Senior Secured Credit Agreement;
(b) no participation contemplated in this Section 10.12.2 shall
relieve such Lender from its Loan or its other obligations hereunder or
under any other Loan Document;
(c) such Lender shall remain solely responsible for the performance
of its Loan and such other obligations;
(d) the Borrower and each other Obligor and the Agent shall continue
to deal solely and directly with such Lender in connection with such
Lender's rights and obligations under this Agreement and each of the other
Loan Documents;
(e) no Participant, unless such Participant is an Affiliate of such
Lender, or is itself a Lender, shall be entitled to require such Lender to
take or refrain from taking any action hereunder or under any other Loan
Document, except that such Lender may agree with any Participant that such
Lender will not, without such Participant's consent, take any actions of
the type described in clause (b) or (c) of Section 10.1, and
(f) the Borrower shall not be required to pay any amount under
Section 4.2 that is greater than the amount that it would have been
required to pay had no participating interest been sold.
The Borrower acknowledges and agrees that each Participant, for purposes of
Sections 4.1, 10.3 and 10.4, shall be considered a Lender.
SECTION 10.13. Other Transactions. Nothing contained herein shall preclude
the Agent or any other Lender from engaging in any transaction, in addition to
those contemplated by this Agreement or any other Loan Document, with the
Borrower or any of its Affiliates in which the Borrower or such Affiliate is not
restricted hereby from engaging with any other Person.
SECTION 10.14. Forum Selection and Consent to Jurisdiction. ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH,
46
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF THE AGENT, THE
LENDERS OR THE BORROWER SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE
COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK, PROVIDED, HOWEVER, THAT ANY SUIT SEEKING
ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE
AGENT'S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER
PROPERTY MAY BE FOUND. THE BORROWER HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO
THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH
LITIGATION AS SET FORTH ABOVE AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT
RENDERED THEREBY IN CONNECTION WITH SUCH LITIGATION. THE BORROWER FURTHER
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE
PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. THE
BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE
LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO
ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM. TO THE EXTENT THAT THE BORROWER HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY
FROM JURISDICTION OF ANY COURT OF FROM ANY LEGAL PROCESS (WHETHER THROUGH
SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION
OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE BORROWER HEREBY
IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS.
SECTION 10.15. Waiver of Jury Trial. THE AGENT, THE LENDERS AND THE
BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR
ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
VERBAL OR WRITTEN) OR ACTIONS OF THE AGENT, THE LENDERS OR THE BORROWER. THE
BORROWER ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT
CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH OTHER LOAN
DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE AGENT AND THE LENDERS ENTERING INTO THIS AGREEMENT AND EACH
SUCH OTHER LOAN DOCUMENT.
SECTION 10.16. Amendment and Restatement of Existing MVI Security
Documents. The Lenders acknowledge and agree that MVI has heretofore executed
and delivered (a) that
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certain Second Amended and Restated Master Subsidiary Pledge Agreement entered
into on or about April 10, 2002, among the Pledgors (as defined therein) and the
Agent; (b) that certain Third Amended and Restated Master Subsidiary Guaranty
entered into on or about April 10, 2002, in favor of the Guarantied Parties (as
defined therein); and (c) that certain Third Amended and Restated Master
Subsidiary Security Agreement entered into on or about April 10, 2002, among the
Subsidiaries (as defined therein) and the Agent (collectively the "Existing MVI
Security Documents"), which security documents are contemporaneously herewith
being amended and restated with respect to MVI pursuant to, respectively (1)
that certain Third Amended and Restated MVI Pledge Agreement of even date
herewith, between MVI and the Agent, substantially in the form of Exhibit G
attached hereto; (2) that certain Fourth Amended and Restated MVI Guaranty dated
as of even date herewith, in favor of the Guarantied Parties (as defined
therein), substantially in the form of Exhibit E-2 attached hereto; and (3) that
certain Fourth Amended and Restated MVI Security Agreement dated as of even date
herewith, between MVI and the Agent, substantially in the form of Exhibit F-2
attached hereto (collectively, the "New MVI Security Documents"), each executed
and delivered in connection with the Loan Documents. The Lenders hereby consent
to and agree to the terms of such amendments and restatements, and hereby
authorize the Agent to execute and accept such New MVI Security Documents.
[SIGNATURES BEGIN ON FOLLOWING PAGE]
48
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized as of the day
and year first above written.
METROCALL HOLDINGS, INC.,
as the Borrower
By: ____________________________________
Name:
Title:
X-0
XXXXXXX XXXXXXXX (XXXXX), INC.,
individually as the Agent and as a
Lender
By: ____________________________________
Name:
Title:
S-2
WACHOVIA BANK, NATIONAL ASSOCIATION,
as a Lender
By: ____________________________________
Name:
Title:
S-3
FLEET NATIONAL BANK, as a Lender
By: ____________________________________
Name:
Title:
S-4
ENDEAVOR L.L.C., as a Lender
By: ____________________________________
Name:
Title:
S-5
COMMERCIAL LOAN FUNDING TRUST I,
as a Lender
By: ____________________________________
Name:
Title:
S-6
XXXXXX XXXXXXX SENIOR FUNDING, INC.,
as a Lender
By: ____________________________________
Name:
Title:
S-7
CAPITAL CROSSOVER PARTNERS,
as a Lender
By: ____________________________________
Name:
Title:
S-8
XXXXXXX & XXXXXX VALUE PARTNERS, L.P.,
as a Lender
By: ____________________________________
Name:
Title:
S-9
PNC BANK, NATIONAL ASSOCIATION,
as a Lender
By: ____________________________________
Name:
Title:
S-10
SCHEDULE I
DISCLOSURE SCHEDULE
Item 6.6
Licenses
Item 6.10
Litigation
Item 6.11
Taxes
Item 6.19
Agreements with Affiliates
Item 6.21
Allowed Indebtedness for Money Borrowed
Item 6.24
Existing Subsidiaries
Item 6.25
Environmental Matters
Item 6.26
Employee Benefit Plans
SCHEDULE I
Item 7.2.3
Allowed Pre-Chapter 11 Liens
SCHEDULE II
SCHEDULE OF INITIAL PERCENTAGES
BANK LOAN AMOUNT PERCENTAGE
Toronto Dominion (Texas), Inc. $3,248,120.30 16.24%
Fleet National Bank $3,248,120.30 16.24%
Wachovia Bank, National Association $3,248,120.30 16.24%
Commercial Loan Funding Trust I $2,255,639.10 11.28%
Xxxxxx Xxxxxxx Senior Funding, Inc. $2,000,000.00 10.00%
PNC Bank, National Association $2,000,000.00 10.00%
Endeavour, L.L.C. $1,744,360.90 8.72%
Capital Crossover Partners $1,203,007.52 6.02%
Xxxxxxx and Xxxxxx Value Partners, L.P. $1,052,631.58 5.26%
EXHIBIT A-1
FORM OF SUBORDINATED PROMISSORY NOTE
$______________ October 8, 2002
FOR VALUE RECEIVED, the undersigned, Metrocall Holdings, Inc., a Delaware
corporation (the "Borrower"), promises to pay to the order of
____________________________ (the "Lender") the principal sum of
____________________ DOLLARS ($____________) or, if less, the aggregate unpaid
principal amount of all Loans shown on the schedule attached hereto (and any
continuation thereof) made by the Lender pursuant to that certain Credit
Agreement dated as of October 8, 2002 (together with all amendments and other
modifications, if any, from time to time thereafter made thereto, the "Credit
Agreement"), among the Borrower, the various financial institutions as are or
may become parties hereto (collectively, the "Lenders"), and Toronto Dominion
(Texas), Inc. ("TD"), as administrative agent (the "Agent") for the Lenders,
payable in installments as set forth in the Credit Agreement, with a final
installment (in the amount necessary to pay in full this Note) due and payable
on December 31, 2004. Unless otherwise defined herein, terms used herein have
the meanings provided in the Credit Agreement.
The Borrower also promises to pay interest on the unpaid principal amount
hereof from time to time outstanding from the date hereof until maturity
(whether by acceleration or otherwise) and, after maturity, until paid, at the
rates per annum and on the dates specified in the Credit Agreement. Overdue
principle and, to the extent permitted by Applicable Law, overdue interest,
shall bear interest at the rate set forth in Section 3.2 of the Credit
Agreement.
Payments of both principal and interest are to be made in lawful money of
the United States of America in same day or immediately available funds to the
account designated by the Agent pursuant to the Credit Agreement.
This Note is a Term Note referred to in, and evidences Indebtedness
incurred under, the Credit Agreement, to which reference is made for a
description of the security for this Note and for a statement of the terms and
conditions on which the Borrower is permitted and required to make prepayments
and repayments of principal of the Indebtedness evidenced by this Note and on
which such Indebtedness may be declared to be immediately due and payable.
Nothing herein contained or implied shall be construed to deem such Indebtedness
or any accrued and unpaid interest thereon paid, satisfied, novated or
terminated, or any collateral or security therefore released or terminated.
This Note is an extension, renewal, and replacement of, and is given in
partial substitution and exchange for, certain promissory notes of the Borrower
executed and delivered under that certain Fifth Amended and Restated Credit
Agreement dated as of March 17, 2000 (the "Prior Agreement"), by and among the
lenders parties thereto, the Agent and the Borrower (f/k/a Metrocall, Inc.), and
the indebtedness evidenced hereby and thereby is a continuing indebtedness and
nothing herein contained or implied shall be construed to deem such indebtedness
or any accrued and unpaid interest thereon paid, satisfied, novated or
terminated, or any collateral or security therefore released or terminated.
Exhibit A-1 - Page 1
EXHIBIT A-1
THE OBLIGATIONS EVIDENCED HEREBY HAVE BEEN SUBORDINATED IN THE MANNER AND
TO THE EXTENT PROVIDED IN THAT CERTAIN INTERCREDITOR AGREEMENT DATED AS OF
OCTOBER 8, 2002 (THE "INTERCREDITOR AGREEMENT"), BY AND AMONG TORONTO DOMINION
(TEXAS), INC., AS AGENT, THE LENDERS AND THE "LENDERS" AS DEFINED IN THE SENIOR
SECURED CREDIT AGREEMENT. EACH HOLDER OF THIS NOTE, BY ITS ACCEPTANCE HEREOF,
SHALL BE BOUND BY THE TERMS AND PROVISIONS OF THE INTERCREDITOR AGREEMENT.
All parties hereto, whether as makers, endorsers, or otherwise, severally
waive presentment for payment, demand, protest and notice of dishonor.
THIS NOTE HAS BEEN DELIVERED IN ___________, ____________ AND SHALL BE
DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK.
METROCALL HOLDINGS, INC.
By: ____________________________________
Name:
Title:
Exhibit A-1 - Page 2
EXHIBIT A-1
SCHEDULE OF LOANS AND PAYMENTS OF PRINCIPAL
TO
NOTE OF METROCALL HOLDINGS, INC.
DATED ________________, _____
Principal Maturity Principal
Amount of Interest Applicable Amount Unpaid
Date of Loan Period Rate Paid Balance
Exhibit A-1 - Page 3
EXHIBIT A-2
FORM OF SUBORDINATED PIK PROMISSORY NOTE
$______________ October 8, 2002
FOR VALUE RECEIVED, the undersigned, Metrocall Holdings, Inc., a Delaware
corporation (the "Borrower"), promises to pay to the order of
____________________________ (the "Lender") the principal sum of
____________________ DOLLARS ($____________) or, if less, the aggregate unpaid
principal amount of all Loans shown on the schedule attached hereto (and any
continuation thereof) made by the Lender pursuant to that certain Credit
Agreement dated as of October 8, 2002 (together with all amendments and other
modifications, if any, from time to time thereafter made thereto, the "Credit
Agreement"), among the Borrower, the various financial institutions as are or
may become parties hereto (collectively, the "Lenders"), and Toronto Dominion
(Texas), Inc. ("TD"), as administrative agent (the "Agent") for the Lenders,
payable in installments as set forth in the Credit Agreement, with a final
installment (in the amount necessary to pay in full this PIK Note) due and
payable on December 31, 2004. Unless otherwise defined herein, terms used herein
have the meanings provided in the Credit Agreement.
The Borrower also promises to pay interest on the unpaid principal amount
hereof from time to time outstanding from the date hereof until maturity
(whether by acceleration or otherwise) and, after maturity, until paid, at the
rates per annum and on the dates specified in the Credit Agreement. Overdue
principle and, to the extent permitted by Applicable Law, overdue interest,
shall bear interest at the rate set forth in Section 3.2 of the Credit
Agreement.
Payments of both principal and interest are to be made in lawful money of
the United States of America in same day or immediately available funds to the
account designated by the Agent pursuant to the Credit Agreement.
This Note is a PIK Note referred to in, and evidences accrued interest
which is due and payable under the Term Note on the date hereof and is issued by
the Borrower pursuant to Section 2.2 of, the Credit Agreement, to which
reference is made for a description of the security for this Note and for a
statement of the terms and conditions on which the Borrower is permitted and
required to make prepayments and repayments of principal of the Indebtedness
evidenced by this Note and on which such Indebtedness may be declared to be
immediately due and payable. Nothing herein contained or implied shall be
construed to deem such Indebtedness or any accrued and unpaid interest thereon
paid, satisfied, novated or terminated, or any collateral or security therefore
released or terminated.
THE OBLIGATIONS EVIDENCED HEREBY HAVE BEEN SUBORDINATED IN THE MANNER AND
TO THE EXTENT PROVIDED IN THAT CERTAIN INTERCREDITOR AGREEMENT DATED AS OF
OCTOBER 8, 2002 (THE "INTERCREDITOR AGREEMENT"), BY AND AMONG TORONTO DOMINION
(TEXAS), INC., AS AGENT, THE LENDERS AND THE "LENDERS" AS DEFINED IN THE SENIOR
SECURED CREDIT AGREEMENT. EACH HOLDER OF THIS NOTE, BY ITS ACCEPTANCE HEREOF,
SHALL BE BOUND BY THE TERMS AND PROVISIONS OF THE INTERCREDITOR AGREEMENT.
Exhibit A-2 - Page 1
All parties hereto, whether as makers, endorsers, or otherwise, severally
waive presentment for payment, demand, protest and notice of dishonor.
THIS NOTE HAS BEEN DELIVERED IN ___________, ____________ AND SHALL BE
DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK.
METROCALL HOLDINGS, INC.
By: ____________________________________
Name:
Title:
Exhibit A-2 - Page 2
SCHEDULE OF LOANS AND PAYMENTS OF PRINCIPAL
TO
PIK NOTE OF METROCALL HOLDINGS, INC.
DATED ________________, _____
Principal Maturity Principal
Amount of Interest Applicable Amount Unpaid
Date of Loan Period Rate Paid Balance
Exhibit A-2 - Page 3
EXHIBIT B
FORM OF LENDER ASSIGNMENT AGREEMENT
To: Metrocall Holdings, Inc.
0000 Xxxxxxxx Xxxxxxx
Xxxxxxxxxx, Xx. 00000
To: Toronto Dominion (Texas), Inc.,
as the Agent
METROCALL HOLDINGS, INC.
Ladies and Gentlemen:
We refer to clause (d) of Section 10.12.1 of to that certain Credit
Agreement dated as of October 8, 2002 (as the same may be amended or modified
from time to time, the "Agreement"), among Metrocall Holdings, Inc., a Delaware
corporation (the "Borrower"), the various financial institutions as are or may
become parties thereto (collectively, the "Lenders"), and Toronto Dominion
(Texas), Inc. ("TD"), as administrative agent (the "Agent") for the Lenders.
Capitalized terms used herein and not otherwise defined herein are used with the
meanings attributed to them in the Agreement.
This agreement is delivered to you pursuant to clause (b) of Section
10.12.1 of the Credit Agreement and also constitutes notice to each of you,
pursuant to clause (a) of Section 10.12.1 of the Credit Agreement, of the
assignment and delegation to _______________ (the "Assignee") of ___% of the
Loan of _____________ (the "Assignor") outstanding under the Credit Agreement on
the date hereof. After giving effect to the foregoing assignment and delegation,
the Assignor's and the Assignee's Percentages for the purposes of the Credit
Agreement are set forth opposite such Person's name on the signature pages
hereof.
Upon such acceptance and recording, from and after the Effective Date, the
Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignee,
whether such amounts have accrued prior to the Effective Date or accrue
subsequent to the Effective Date. The Assignor and Assignee shall make all
appropriate adjustments in payments for periods prior to the Effective Date by
the Agent or with respect to the making of this assignment directly between
themselves.
The Assignee hereby acknowledges and confirms that it has received a copy
of the Credit Agreement and the exhibits related thereto, together with copies
of the documents which were required to be delivered under the Credit Agreement
as a condition to the making of the Loans thereunder. The Assignee further
confirms and agrees that in becoming a Lender and in making Loan under the
Credit Agreement, such actions have and will be made without recourse to, or
representation or warranty by the Agent.
Except as otherwise provided in the Credit Agreement, effective as of the
date of acceptance hereof by the Agent
Exhibit B - Page 1
(a) the Assignee
(i) shall be deemed automatically to have become a party to
the Credit Agreement, have all the rights and obligations of a
"Lender" under the Credit Agreement and the other Loan Documents as
if it were an original signatory thereto to the extent specified in
the second paragraph hereof; and
(ii) agrees to be bound by the terms and conditions set forth
in the Credit Agreement and the other Loan Documents as if it were
an original signatory thereto; and
(b) the Assignor shall be released from its obligations under the
Credit Agreement and the other Loan Documents to the extent specified in
the second paragraph hereof.
The Assignor and the Assignee hereby agree that the [Assignor] [Assignee]
will pay to the Agent the processing fee referred to in Section 10.12.1 of the
Credit Agreement upon the delivery hereof.
The Assignee hereby advises each of you of the following administrative
details with respect to the assigned Loan and requests the Agent to acknowledge
receipt of this document:
(A) Address for Notices:
Institution Name:
Attention:
Domestic Office:
Telephone:
Facsimile:
(B) Payment Instructions:
The Assignee agrees to furnish the tax form required by the second to last
sentence of Section 4.2 (if so required) of the Credit Agreement no later than
the date of acceptance hereof by the Agent.
This Agreement may be executed by the Assignor and Assignee in separate
counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which taken together shall constitute one and the same
agreement.
Adjusted Percentage [ASSIGNOR]
Loans: __%
Exhibit B - Page 2
By:_____________________________________
Title:
Percentage [ASSIGNOR]
Loans: __%
By:_____________________________________
Title:
Accepted and Acknowledged
this __ day of _______, 20__
Toronto Dominion (Texas), Inc., as Agent
By: _________________________________
Name:
Title
Exhibit B - Page 3
EXHIBIT C
FORM OF
LEGAL OPINION OF XXXXXXX XXXX & XXXXX LLP,
COUNSEL TO BORROWER
Exhibit C - Page 1
EXHIBIT D
[RESERVED]
Exhibit D - Page 1
EXHIBIT E
FORM OF SENIOR SUBORDINATED MASTER SUBSIDIARY GUARANTY
Exhibit E - Page 1
EXHIBIT F-1
FORM OF SENIOR SUBORDINATED
BORROWER SECURITY AGREEMENT
Exhibit F-1 - Page 1
EXHIBIT F-2
FORM OF SENIOR SUBORDINATED MASTER
SUBSIDIARY SECURITY AGREEMENT
Exhibit F-2 - Page 1
EXHIBIT G
FORM OF SENIOR SUBORDINATED PLEDGE AGREEMENT
Exhibit G - Page 1
EXHIBIT H
FORM OF SENIOR SUBORDINATED
TRADEMARK SECURITY AGREEMENT
Exhibit H - Page 1
EXHIBIT I
FORM OF SUBSIDIARY LOAN CERTIFICATE
The undersigned, who is the ___________ of ____________, a ____________
corporation (the "Subsidiary"), does hereby certify on behalf of the Subsidiary
that he/she is the duly elected and qualified ________________ of the Subsidiary
and an Authorized Signatory thereof.
In connection with the making of certain loans to Metrocall Holdings,
Inc., a Delaware corporation (the "Borrower"), in the aggregate principal amount
not to exceed $20,000,000 by the Lenders under that certain Credit Agreement
dated as of October 8, 2002 (as amended, modified, restated or supplemented from
time to time, and as in effect on the date hereof, the "Credit Agreement") by
and among the Borrower, the Lenders signatories thereto (collectively, and with
each other financial institution which subsequently becomes a `Lender' under the
Credit Agreement, as such term is defined therein, the "Lenders"), Toronto
Dominion (Texas), Inc., as administrative agent (the "Agent") for the Lenders,
the undersigned hereby further certifies to the Agent and the Lenders on behalf
of the Subsidiary that:
1. Attached hereto as Exhibit A is a true, complete, and correct copy of
the Certificate of Articles of Incorporation of the Subsidiary certified by the
Secretary of State of the State of ___________ as in full force and effect on
the date hereof.
2. Attached hereto as Exhibit B is a true, complete and correct copy of
the By-Laws or Operating or Partnership Agreement of the Subsidiary, together
with all amendments thereto, as in full force and effect on the date hereof.
3. Attached hereto as Exhibit C is a true, complete and correct copy of
the resolutions, if any, of the Board of Directors of the Subsidiary authorizing
the execution, delivery and performance by the Subsidiary of the Loan Documents
to which the Subsidiary is a party.
4. Attached hereto as Exhibit D are true, complete, and correct copies of
certificates of good standing for the Subsidiary from the Secretary of State for
the state of its incorporation and for each other jurisdiction in which the
character of the Subsidiary's properties or the nature of its business requires
the Subsidiary to be qualified to do business. The Subsidiary has, from the
dates of such certificates to the date hereof, remained in good standing under
the laws of such states.
5. Attached hereof as Exhibit E are true, complete and correct copies of
any shareholders' agreements, voting agreements or voting trust agreements in
effect with respect to the Capital Stock of the Subsidiary.
6. The following persons are the Authorized Signatories of the Subsidiary,
each of such persons having been duly elected, and set forth opposite their
respective names below are their respective genuine signatures.
Exhibit I - Page 1
Name Title Signature
---- ----- ---------
________________________ _________________________ _________________________
________________________ _________________________ _________________________
________________________ _________________________ _________________________
Capitalized terms used herein and not otherwise defined have those meanings
ascribed to them in the Credit Agreement.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
Exhibit I - Page 2
IN WITNESS WHEREOF, I have signed this Certificate this ___ day of
_____________, ___________.
_____________________________________, a
____________________ corporation
By: ____________________________________
Name: ______________________________
Title: _____________________________
I, __________________________, ________________________, do hereby certify
that __________________ is the duly elected, qualified and acting
______________________ of the Subsidiary, and that his/her signature above is
his/her true signature.
IN WITNESS WHEREOF, I have executed this Certificate as of the ______ day
of ___________________, ______.
By: ____________________________________
Name: ______________________________
Title: _____________________________
Exhibit A - Certificate or Articles of Incorporation
Exhibit B - By-laws or Operating or Partnership Agreement
Exhibit C - Authorizing Resolutions
Exhibit D - Certificates of Good Standing
Exhibit E - Shareholders' Agreements/Voting Trust Agreements
Exhibit I - Page 3
EXHIBIT J
FORM OF TAX SHARING AGREEMENT
Exhibit J - Page 1
EXHIBIT K
FORM OF INTERCOMPANY SERVICES AGREEMENT
Exhibit K - Page 1
TABLE OF CONTENTS
PAGE
ARTICLE I DEFINITIONS AND ACCOUNTING TERMS ...................................... 2
SECTION 1.1. Defined Terms .............................................. 2
SECTION 1.2. Use of Defined Terms ....................................... 16
SECTION 1.3. Cross-References ........................................... 16
SECTION 1.4. Accounting and Financial Determinations .................... 16
ARTICLE II LOANS ................................................................. 17
SECTION 2.1. Conversion of Existing Obligations; No Borrowings .......... 17
SECTION 2.2. Notes ...................................................... 17
ARTICLE III REPAYMENTS, PREPAYMENTS AND INTEREST .................................. 17
SECTION 3.1. Repayments ................................................. 17
SECTION 3.2. Interest ................................................... 18
ARTICLE IV CERTAIN OTHER PROVISIONS .............................................. 20
SECTION 4.1. Increased Capital Costs .................................... 20
SECTION 4.2. Taxes ...................................................... 20
SECTION 4.3. Payments, Computations, etc................................. 21
SECTION 4.4. Sharing of Payments ........................................ 21
SECTION 4.5. Setoff ..................................................... 22
ARTICLE V CONDITIONS PRECEDENT .................................................. 22
SECTION 5.1. Organizational Documents ................................... 22
SECTION 5.2. Incumbency, etc............................................. 23
SECTION 5.3. Delivery of PIK Notes ...................................... 23
SECTION 5.4. Agreement .................................................. 23
SECTION 5.5. Senior Secured Credit Agreement and Related Documents;
Intercreditor Agreement .................................... 23
SECTION 5.6. Security Agreements ........................................ 23
SECTION 5.7. Guaranties ................................................. 24
SECTION 5.8. Pledge Agreements .......................................... 24
SECTION 5.9. Opinion of Counsel ......................................... 24
SECTION 5.10. Consolidated Financial Statements .......................... 24
SECTION 5.11. Plan of Reorganization; Confirmation ....................... 24
SECTION 5.12. Implementation of the Plan of Reorganization ............... 24
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TABLE OF CONTENTS
(continued)
PAGE
SECTION 5.13. Certificate as to Confirmation Order ....................... 25
SECTION 5.14. Post-Confirmation Order Structure .......................... 25
SECTION 5.15. License Agreement .......................................... 25
SECTION 5.16. Priority; Security Interests ............................... 25
SECTION 5.17. Insurance .................................................. 25
SECTION 5.18. Certificate ................................................ 26
SECTION 5.19. Expenses, etc............................................... 26
SECTION 5.20. Intercompany Services Agreement ............................ 26
SECTION 5.21. Tax Sharing Agreement ...................................... 26
SECTION 5.22. New MVI Security Documents ................................. 26
SECTION 5.23. Satisfactory Legal Form .................................... 26
SECTION 5.24. Other Documents ............................................ 26
ARTICLE VI REPRESENTATIONS AND WARRANTIES ........................................ 26
SECTION 6.1. Organization; Power; Qualification ......................... 26
SECTION 6.2. Authorization; Enforceability .............................. 27
SECTION 6.3. Non-Contravention, etc...................................... 27
SECTION 6.4. Governmental Regulation .................................... 27
SECTION 6.5. Business ................................................... 27
SECTION 6.6. Licenses, etc............................................... 27
SECTION 6.7. Compliance with Law ........................................ 28
SECTION 6.8. Title to Assets; Real Property ............................. 28
SECTION 6.9. Financing Statements ....................................... 28
SECTION 6.10. Litigation ................................................. 28
SECTION 6.11. Taxes ...................................................... 28
SECTION 6.12. Financial Statements ....................................... 29
SECTION 6.13. No Material Adverse Effect ................................. 29
SECTION 6.14. ERISA ...................................................... 29
SECTION 6.15. Compliance with Regulations T, U and X ..................... 29
SECTION 6.16. Investment Company Act ..................................... 30
SECTION 6.17. Public Utility Holding Company Act ......................... 30
-ii-
TABLE OF CONTENTS
(continued)
PAGE
SECTION 6.18. Absence of Default, etc..................................... 30
SECTION 6.19. Agreements with Affiliates ................................. 30
SECTION 6.20. Priority ................................................... 31
SECTION 6.21. Indebtedness for Money Borrowed ............................ 31
SECTION 6.22. Solvency ................................................... 31
SECTION 6.23. Patents, Trademarks etc..................................... 31
SECTION 6.24. Subsidiaries ............................................... 32
SECTION 6.25. Environmental Warranties ................................... 32
SECTION 6.26. Pension and Welfare Plans .................................. 33
SECTION 6.27. Payment of Wages ........................................... 33
SECTION 6.28. Accuracy of Information .................................... 33
ARTICLE VII COVENANTS ............................................................. 34
SECTION 7.1. Affirmative Covenants ...................................... 34
SECTION 7.2. Negative Covenants ......................................... 34
ARTICLE VIII EVENTS OF DEFAULT ..................................................... 35
SECTION 8.1. Listing of Events of Default ............................... 35
SECTION 8.2. Action if Bankruptcy ....................................... 38
SECTION 8.3. Action if Other Event of Default ........................... 38
ARTICLE IX THE AGENT ............................................................. 38
SECTION 9.1. Actions .................................................... 38
SECTION 9.2. Exculpation ................................................ 39
SECTION 9.3. Successor .................................................. 39
SECTION 9.4. Loans by TD ................................................ 40
SECTION 9.5. Credit Decisions ........................................... 40
SECTION 9.6. Copies, etc................................................. 40
ARTICLE X MISCELLANEOUS PROVISIONS .............................................. 40
SECTION 10.1. Waivers, Amendments, etc.................................... 40
SECTION 10.2. Notices .................................................... 41
SECTION 10.3. Payment of Costs and Expenses .............................. 41
SECTION 10.4. Indemnification ............................................ 42
-iii-
TABLE OF CONTENTS
(continued)
PAGE
SECTION 10.5. Reliance on and Survival of Various Provisions ............. 43
SECTION 10.6. Prior Loan Agreement ....................................... 43
SECTION 10.7. Severability ............................................... 43
SECTION 10.8. Headings ................................................... 44
SECTION 10.9. Execution in Counterparts, Effectiveness, etc............... 44
SECTION 10.10. Governing Law; Entire Agreement ............................ 44
SECTION 10.11. Successors and Assigns ..................................... 44
SECTION 10.12. Sale and Transfer of Loans and PIK Notes; Participations
in Loans and PIK Note ...................................... 44
SECTION 10.13. Other Transactions ......................................... 46
SECTION 10.14. Forum Selection and Consent to Jurisdiction ................ 46
SECTION 10.15. Waiver of Jury Trial ....................................... 47
SECTION 10.16. Amendment and Restatement of Existing MVI Security
Documents .................................................. 47
SCHEDULE I - Disclosure Schedule
SCHEDULE II - Initial Percentages
EXHIBIT A-1 - Form of Subordinated Promissory Note
EXHIBIT A-2 - Form of Subordinated PIK Promissory Note
EXHIBIT B - Form of Lender Assignment Agreement
EXHIBIT C - Form of Legal Opinion of Xxxxxxx Xxxx & Xxxxx LLP,
Counsel to the Borrower
EXHIBIT D - [Reserved]
EXHIBIT E-1 - Form of Senior Subordinated Subsidiary Security Agreement
EXHIBIT E-2 - Form of Senior Subordinated Master Subsidiary Guaranty
EXHIBIT F-1 - Form of Senior Subordinated Borrower Security Agreement
EXHIBIT F-2 - Form of Senior Subordinated Master Subsidiary Security
Agreement
EXHIBIT G - Form of Senior Subordinated Pledge Agreement
EXHIBIT H - Form of Senior Subordinated Trademark Security Agreement
EXHIBIT I - Form of Subsidiary Loan Certificate
EXHIBIT J - Form of Tax Sharing Agreement
EXHIBIT K - Form of Intercompany Services Agreement
-iv-
